Howard Buskirk

Auction 60 of lower 700 MHz spectrum, which starts today (Wed.), hasn’t drawn significant telecom industry interest. The 5 licenses offered, which went unsold in earlier 700 MHz auctions, cover smallish CMA areas in Puerto Rico. The lower 700 MHz spectrum, still encumbered by broadcasters, will have to be cleared through the DTV transition. But companies led by Aloha Partners, which has paid some $100 million for 700 MHz licenses, believe they can use it for robust wireless data networks. An industry source called the licenses on sale the “dregs from auction 49m” which elicited scant interest during that sale and which the FCC is trying to sell again. Aloha and 4 other carriers have qualified to bid.

A N.Y. Public Service Commission staff report said the $8.44 billion Verizon-MCI merger would lead to a significant increase in market power in the state. N.Y. presents the pending merger a key clearance hurdle. The PSC didn’t find similar concerns with the SBC-AT&T merger, at least in N.Y. Wall Street is watching N.Y. and other key states as big tests for the merger.

Alltel agreed Wed. to sell assets in 16 markets in Ark., Kan. and Neb. as a condition of its pending merger with Western Wireless to address Justice Dept. concerns. FCC approval of the merger is still pending and the Commission may impose separate conditions.

Cingular or Verizon Wireless likely would face the toughest fight if they emerged as the purchasers of T- Mobile, regulatory sources said Tues. Other potential players, including rumored suitor Vodafone, or less conventional wireless players like Comcast or even Microsoft, would likely have an easier time winning approval, they said.

The U.S. Supreme Court declined to hear a case brought by the EMR Network, which had tried to force the FCC to revamp its radio-frequency (RF) radiation guidelines. The decision was a victory for wireless carriers, who view the case as raising RF safety issues they see as invalid. The Supreme Court action appears to close a lengthy legal effort by the group to force the FCC to reopen its RF rules. The EMR Network petitioned the FCC in late 2001 seeking further review. The Commission turned the group down, saying in part it lacked funds for the studies. In its pleading to the Supreme Court, the group, renamed the EMR Policy Institute, said major health issues were at stake. “We believe that electromagnetic radiation (EMR), which includes the extremely low frequencies (ELF), the radio frequencies and microwave (MW) radiation, may be hazardous to life and may constitute a significant threat to public health,” the group said. “This belief is based on credible research, spanning decades of scientific inquiry. Our mission is to enhance local, regional, national, and international efforts to reduce, mitigate, and where possible, eliminate hazardous exposure to EMR.”

CHICAGO -- VoIP guru Jeff Pulver will file a petition for reconsideration challenging an FCC order giving all VoIP operators 120 days to make 911 service available to customers. Pulver told a Supercomm dinner here Wed. night the order misunderstands the changing nature of communications and the business models made possible by VoIP.

Verizon is turning to Capitol Hill for help after getting beaten in Tex. on cable franchising, Verizon Exec. Vp. Tom Tauke told us Tues. He said early Hill contact has been favorable, but the Senate, as usual, is hard to predict. Tauke called a video franchise bill more likely as part of broader telecom legislation than as a stand- alone measure.

CHICAGO -- The cable industry is waging an “anticonsumer” battle in its fight with the telecom industry over franchise fees, SBC Group Pres-External Affairs Forrest Miller, the highest-ranking company official speaking at Supercomm, said Mon. Thomas Tauke, exec. vp-public affairs, policy & communications at Verizon, questioned whether it’s practical for Verizon to reach enough local agreements for franchises to make nationwide rollout of Fios feasible.

Bell Canada and Tellus said they will appeal a Canadian Radio-Television and Telecommunications Commission (CRTC) decision to regulate VoIP prices. The declaration follows through on earlier signals of resistance. UBS said it doesn’t expect U.S. regulators to follow the Canadian example, which it described as a win for Canadian cable operators.

Energy industry sources said Becky Klein, former chmn. of the Tex. PUC, seems headed to the Federal Energy Regulatory Commission to replace Pat Wood, rather than to the FCC. Klein is expected to be paired with Democrat Jon Wellinghoff, Nevada’s Consumer Advocate, which should speed approval. Wellinghoff is the candidate picked by Sen. Harry Reid (D-Nev.), the Senate minority leader. FERC Comr. Joe Kelliher, a former aide to Rep. Barton (R- Tex.) is contending for the chairmanship.