F.C.C. Commissioner Can Vote on AT&T
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Robert M. McDowell will be permitted to cast the tie-breaking vote on the proposed acquisition of BellSouth by AT&T.
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The boards of directors of SBC Communications Inc.  and AT&T Corp.  were to meet on Sunday to vote on a more than &#36;15 billion stock deal in which SBC will buy AT&T, according to sources familiar with the situation.
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September 28, 2004 -- Michael Powell, chairman of the Federal Communications Commission, plans to hold a vote this year on a proposal to require US television broadcasters such as Viacom Inc.
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(InfoWorld) - U.S. senators questioned Thursday whether members of the U.S. Federal Communications Commission plan to enforce merger conditions that AT&T Inc. agreed to in its December acquisition of BellSouth Corp. Democratic members of the Senate Commerce, Science and Transportation Committee questioned why FCC Chairman Kevin Martin and Commissioner Deborah Taylor Tate issued a joint statement while approving the merger saying the FCC couldn't broadly enforce some of AT&T's concessions. "What I find difficult to understand is that ... you said that you do not intend to stand by the deal that was reached," said Senator Daniel Inouye, the committee chairman and a Hawaii Democrat. Martin and Tate, both Republicans, had protested a net neutrality condition, preventing AT&T from giving priority transmission speeds to its own or its partners' Web content for at least two years. The net neutrality conditions "very well may cause greater problems than the speculative problems they seek to address," Martin and Tate said in the statement Dec. 29. Martin on Thursday said he intends to hold AT&T to the net neutrality agreement, but he doesn't plan to impose those standards on other broadband carriers. "Since [AT&T] volunteered to do that, we would enforce that," he said. "That does not mean we were changing our policy." Martin also suggested another part of the agreement setting out wholesale rates for some data services may be unenforceable. "What is your legal authority as chairman ... to not enforce something you just did?" asked Senator Mark Pryor, an Arkansas Democrat. AT&T agreed to lower the wholesale special access prices for DS1, DS3, and Ethernet services available to some regional telecom carriers and large businesses, but not to large competitors. But the FCC's policy in the past has been that wholesale discounts should apply to all customers, Martin said. "That tariff actually has some components that I believe are illegal under the commission precedent," Martin said. "They can file [the proposed discount], but I'm not committing to approving something that would be in violation of our precedent. We don't allow for that kind of discrimination." But Commissioner Jonathan Adelstein, a Democrat who pushed for conditions on the AT&T merger, noted that the FCC adopted the AT&T merger conditions on a 4-0 vote. "It's hard for me to understand why we can't implement something we adopted unanimously," he said. Senators also urged the FCC to work on ways to get broadband service to rural, inner city and poor areas. The FCC on Wednesday issued a report saying the number of high-speed lines in the U.S. increased by 26 percent during the first half of 2006, from 51.2 million to 64.6 million lines in service. The number of high-speed lines grew by 21 percent in the second half of 2005. Senators also pointed to the Organization for Economic Co-operation and Development's latest study saying the U.S. ranks 12th in broadband adoption rate among industrialized nations. Commissioner Michael Copps called on Congress and the FCC to develop a national broadband strategy. He called the U.S. broadband adoption rates "woeful." "I am really worried that we can go into the 21st century and have a bigger digital divide in this country ... than we had back in the days of plain, old telephone service in the 20th century," he said. "This just isn't feel-good liberal theory -- we're talking about the competitiveness of the United States of America."
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(InfoWorld) - The U.S. Federal Communications Commission has ruled that incumbent local exchange carriers must connect to VoIP (voice over Internet Protocol) services, overruling two state public service commission opinions. The FCC on Thursday granted a petition from Time Warner Cable Inc., which had complained that the South Carolina and Nebraska public service commissions had allowed rural local exchange carriers to refuse access to wholesale telecom vendors connecting to Time Warner's VoIP service. The rural carriers had argued that FCC rules don't require them to connect to the wholesale vendors because they don't provide direct voice service to residents. But the FCC said that argument was a misinterpretation of its rules. The FCC "must promote competition in every sector it oversees and create a level playing field among service providers," said FCC Chairman Kevin Martin, in a statement. The FCC decision "ensures that consumers in all areas of the country reap the benefits of competition in the form of lower prices, innovative services and more choice," he added. Time Warner Cable, which was using wholesale transport services from MCI, now part of Verizon Communications Inc., and Sprint Nextel Corp., filed a petition with the FCC last March. The two state commissions had ruled that the services provided by MCI and Sprint did not quality as telecommunications services, and therefore, rural incumbent local exchange carriers were not required to interconnect with them. But four other states required local carriers to connect with the wholesale vendors, Time Warner argued. The FCC, in its decision, said interconnection requirements should apply to both retail and wholesale telecom services. "A contrary decision would impede the important development of wholesale telecommunications and facilities-based VoIP competition," the FCC said in its order.
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The Federal Communications Commission is slated to approve the $67 billion purchase of BellSouth by telecom giant AT&T, formerly known as SBC. Shareholders approved the merger in July and expected government regulators to demand the combined company shed some assets.
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The U.S. Federal Communications Commission has ruled that incumbent local exchange carriers must connect to VoIP (voice over Internet Protocol) services, overruling two state public service commission opinions.
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The U.S. Federal Communications Commission has ruled that incumbent local exchange carriers must connect to VOIP (voice over Internet Protocol) services, overruling two state public service commission opinions.
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The F.C.C. adopted rules that will enable utility companies to offer an alternative to broadband services provided by cable and phone companies.
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(InfoWorld) - The U.S. Federal Trade Commission is taking the middle ground in the net neutrality debate that pits large telecommunications operators against Internet giants. In a report on its examination ofÂ the net neutrality issue, the FTC on Wednesday didn't urge lawmakers to either pass or kill neutrality legislation but instead recommended that policymakers proceed with caution. Net neutrality refers to the concept of an open Internet where all content is treated the same way. Net neutrality regulation, backed by companies such as Google and by World Wide Web pioneer Timothy Berners-Lee, would require telecommunications operators to keep their networks neutral. Operators, however, typically argue that such regulations would stifle innovation. Qwest Communications International and Verizon CommunicationsÂ interpreted the FTC statement as a victory. "The Federal Trade Commission report confirms that there is no problem to fix," said Tom Tauke, Verizon executive vice president for public affairs, policy and communications, in a statement. "Proposals to impose new regulation actually threaten further advancements in broadband Internet connections." Qwest issued a similar comment. "Qwest is pleased with the findings of the report released today by the Federal Trade Commission (FTC) that government regulation of the Internet is unnecessary because there is no evidence of market failure or consumer harm," said Gary Lytle, Qwest senior vice president of federal relations, in a statement. An organization on the other side of the fence, the Open Internet Coalition, was pleased to see that the FTC found that consumers have said they strongly prefer the current open access model. But the group warned that Congress and the Federal Communications Commission must act to protect the open Internet. If policymakers wait until operators begin treating traffic differently, it will be very difficult to return to the current open framework, the group said. The SavetheInternet.com Coalition took a similar stance. "This is not the time for caution, but rather forward-looking and decisive action reinstating Net Neutrality once and for all," said S. Derek Turner, research director of Free Press, an organization that is part of the SavetheInternet.com Coalition, in a statement. The FTC said the broadband industry is moving toward more competition. Thus, in the absence of market failure, policy makers should be particularly careful in enacting new regulations. However, some organizations, including the SavetheInternet.com Coalition, argue that competition is weak, with most consumers having at most two operators to choose from. Recent consolidation, such as SBC's acquisition of AT&T, has shrunk the competitive market. In May, 54 organizations, including Amazon.com and Tivo,Â called for a national broadband policyÂ that includes net neutrality laws. Google's public policy blog, launched in late May, already includes several entries supporting net neutrality.
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The FCC decides that cable, phone and other companies offering internet-based phone services fall under federal jurisdiction. The company calls the ruling a victory for consumers.
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FCC Commissioner Robert McDowell won't vote to break the deadlock on AT&amp;T's $86 billion merger with BellSouth.
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Federal Election Commission may appeal ruling that campaign finance and spending limits must apply online.
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The U.S. Senate Commerce Committee   on Tuesday approved another five-year term for Republican Kevin   Martin to serve on the Federal Communications Commission, which   regulates the communications, television and radio industries.
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(InfoWorld) - Several lawmakers protested a spectrum auction proposal from the chairman of the U.S. Federal Communications Commission (FCC), saying his plan could limit the number of bidders and raise costs to consumers. FCC Chairman Kevin Martin's plan would require winners of part of theÂ 700MHz band of spectrum, to be auctioned by early next year, to accept any wireless devices, including phone handsets, allowing customers to transfer devices between mobile providers. Martin's plan would also include net neutrality-like rules, prohibiting auction winners from blocking or slowing Web content from other providers. But several members of the House of Representatives Subcommittee on Telecommunications and the Internet, many of them Republicans, questioned Martin's proposed rules, which have support of the majority of the FCC. Representative Joe Barton, a Texas Republican, said he was "very disappointed" that fellow Republican Martin was proposing regulations for part of the 60MHz of spectrum to be auctioned. Some proposals byÂ consumer groups and Frontline WirelessÂ would also require auction winners to provide wholesale access to competitors, and Barton praised Martin for not including that provision. "It's not quite as bad as the Frontline plan, but I don't think it's as good as absolute no-condition auction," Barton said. Many Republicans suggested that auction conditions would decrease the value of the spectrum. Congress has budgeted the auction to raise $10 billion with about half of that going toward reducing the U.S. government budget deficit. "Congress has already spent that money," said Representative Charles Gonzalez, a Texas Democrat. Questions about Martin's proposal came from a handful of Democrats. Representative John Dingell, a Michigan Democrat and chairman of the full House Energy and Commerce Committee, asked FCC commissioners whether the device-portability rules would increase the cost of wireless phone plans. Customers want to be able to take their mobile phones with them when they switch carriers, but carriers generally haven't offered that option, Martin said. "I think the benefits outweigh the costs and concerns," he said. Barton suggested that winning bidders could implement the device-portability and net neutrality proposals without FCC mandate. Google has indicatedÂ it could bid billions of dollars, Barton noted. "Why shouldn't we just let Google bid?" Barton said. "If they've got a better idea, why don't they go into the marketplace and bid their four or five billion dollars?" There's customer demand for device portability, but carriers haven't acted on it, Martin said. Wireless carriers didn't offer phone number portability until the FCC forced them to in late 2003, then millions of U.S. residents took advantage of it, he said. Asked whether they supported Martin's proposals, the FCC's two Democrats said they did, while the two other Republicans said they hadn't made their minds up yet. "Please let me keep my phone and let me take it wherever I want," said subcommittee chairman Ed Markey, a Massachusetts Democrat. The so-called open-access rules are necessary for new broadband competition to challenge cable and telecom providers, said FCC commissioner Michael Copps, a Democrat. The 700MHz auction is the last major spectrum auction on the horizon, many participants said. "This is one proceeding where we cannot fail," Copps said. Some lawmakers suggested Martin's proposal doesn't go far enough. Representative Charles "Chip" Pickering, a Mississippi Republican, called on the FCC to require wholesale access rules as well. Wholesale access would allow new and innovative services to flourish on the networks using the spectrum, he said. Martin's plan would "enhance markets and competition," he added.
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Despite a grilling from a Senate committee yesterday, Federal Communications Commission Chairman Kevin J. Martin said he would not postpone a Dec. 18 vote on a controversial media-ownership rule.
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The U.S. Senate on Sunday approved  Democrat Jonathan Adelstein to serve a five-year term at the  Federal Communications Commission.