May 2010

CTIA Challenges Free Wireless Broadband Proposal

Wireless industry lobbying group CTIA has written to the Federal Communications Commission to respond to the recent letter and associated stimulus grant request of the County Executives of America (CEOA).

The CEOA Letter requests that the FCC allocate the 2155-2180 MHz spectrum band ("AWS-3") for the creation of a free broadband service to be deployed in connection with M2Z Networks. CEOA notes that it has submitted an application for funding under the Broadband Technology Opportunities Program (BTOP) that relies on use of the AWS-3 band, and therefore asks the FCC to abandon the recommendations -- made less than two months ago in the National Broadband Plan -- to explore pairing the AWS-3 band with Federal spectrum in or around 1.7 GHz and "immediately" make available the AWS-3 band for CEOA's proposed network. CTIA says CEOA's letter and application should be summarily dismissed by the FCC and NTIA as they not only violate the goals recently identified in the NBP but also violate the objectives of the BTOP program.

CEOA's application, CTIA says, and the proposal upon which it is based suffer from several fatal flaws that will be discussed in more detail in this letter, including:

The NBP specifically recommended that NTIA investigate pairing the AWS-3 spectrum;
The CEOA application is contrary to the NBP, in that it violates the goals identified in the Plan;
CEOA's application would not advance BTOP objectives, as 99.9968 percent of the population in the counties seeking stimulus grants already has wireless 3G service available;
CEOA's proposal commits only to future speeds that are slow by today's standards; and
The submission violates the rules and policies governing BTOP as the rules discourage funding applications that do not demonstrate the applicant's ability to secure all required licenses and regulatory approvals.

FCC, Mobile-Phone Industry Spar Over Disclosures, Micromanaging

After the Federal Communications Commission released a survey showing mobile telephone customers are being surprised by extra fees and contract terms, Steve Largent, president of CTIA - The Wireless Association, said, "I am very troubled with the current direction the FCC is taking. It seems the commission is going to attempt to micromanage what is an incredible array of choices for consumers."

Largent, a former Republican Congressman, said the wireless industry "does provide 'simple and easy to understand' plans for every type of American consumer." Verizon Wireless, AT&T and other service providers may face rules like those in Europe, where carriers must send text messages to subscribers who are closing in on plan limits, the FCC said May 11. The agency said it is talking with wireless industry groups about steps to improve bills. Last week the agency said wireless industry concentration is rising. AT&T Inc., the second-biggest mobile-phone company and a CTIA member, said the FCC's conclusion about concentration could lead to new regulations. Other CTIA members include leader Verizon Wireless, Sprint Nextel Corp. and Deutsche-Telekom AG's T-Mobile.

FCC Focused On Fee Disclosure, Not Amounts

In its probe of wireless early-termination fees, the Federal Communications Commission won't focus on the amount of fees but on notice provided to consumers about them.

That should come as welcome news to the major U.S. wireless operators, whose policies around early-termination fees -- imposed when customers break contracts prematurely -- came under scrutiny by the FCC last December after Verizon Wireless doubled its ETF for smartphones and other "advanced devices" to $350. (AT&T followed suit last week.) It appears the FCC will not end up taking any action over the size of fee hikes. "That's not an area we're getting into at this time," said Joel Gurin, consumer and government affairs bureau chief at the FCC. Gurin said Wednesday that the FCC is continuing to work with the wireless industry as well as public interest groups to try to ensure that people have adequate information about charges so they're not taken by surprise. "What's important about this survey is that it gives us a common ground of understanding," he said.

Klobuchar: FCC survey supports plan to rein in cell phone termination penalties

Sen. Amy Klobuchar (D-MN) said the Federal Communications Commission's survey on consumer cell phone experiences supports her bill that would force wireless companies to do a better job at explaining and notifying subscribers of penalties for leaving their contracts early.

Last December, Klobuchar, Sen. Russ Feingold (D-Wi.), Jim Webb (D-VA) and Mark Begich (D-AK), introduced a bill that would require wireless providers to pro-rate early termination fees (ETFs) and clearly notify customers about the fee, not only at the time of purchase, but for the duration of their contracts. "The FCC's consumer survey confirms what we have known for a long time - that confusing Early Termination Fees undermine competition and result in less consumer choice," said Sen Klobuchar. "Nearly two out of three Americans have seriously considered switching cell phone providers but ultimately decided to stay with their current provider because of a cancellation fee. Like a rigged carnival game, wireless providers bury these fees in the fine print and slam consumers if they try to find better service or save a few bucks in their monthly bill."

Behind Verizon Wireless' 4G rural buildout plan

[Commentary] Verizon plans to build out its 700 MHz spectrum to match its current 3G footprint by 2013. In areas where Verizon does not offer 3G service today, the company wants to work with small carriers in building out 4G service based on long-term evolution (LTE) technology.

Small carriers would have the option of building out the 700 MHz spectrum themselves or letting Verizon build it, sharing some of the small carriers' existing infrastructure. Nelson expects the majority of carriers participating in the program to opt to let Verizon build the network, which would be the less costly alternative. As for timing, a Verizon spokesperson said, "We expect to see substantial movement in 2011." Sounds like a polite way of saying 2012 or later for service availability. Small carriers that want to make service available sooner, however, may opt to build out Verizon's 700 MHz spectrum on their own and tie it to Verizon's core network. In either case, the small carriers would offer service to their customers under their own name, not Verizon's.

First responder devices still can't talk to each other, Congress told

Nine years after the 9/11 terrorist attacks, first responders such as police and firefighters are still imperiled by substandard communications technology. Witnesses testifying to the House Science Committee's technology panel on Thursday said technological problems continue to put first responders in danger. Mobile radio devices sometimes cannot communicate with other devices — even ones made by the same manufacturer — despite interoperability standards intended to guarantee just that, according to David Boyd, a director at the Homeland Security Department. Boyd and Chris Orr, a program manager at the National Institute of Standards and Technology, said the need for action is "extremely urgent" and called for tests so to ensure technology operates across vendors, townships and agencies.

Lawmakers begin push to extend Internet services to disabled

Lawmakers want to put legislation helping the deaf communicate with speakers at the other end of an iPhone and providing closed captioning for videos on websites like Hulu on the fast track.

At a hearing May 26 on a bill meant to extend Internet services to the disabled, Sen. John Kerry (D-MA) said he aimed to win congressional approval by the end of the year. Kerry's bill would bring the two-decade-old Americans with Disabilities Act in line with new technologies by, for instance, ensuring that closed captioning is available for online video. It would also impose a number of new requirements for the Federal Communications Commission to impose on various technologies. Quick passage could be a challenge given industry concerns about parts of the bill. Walter McCormick, the president of US Telecom, pointed to definitions in the House and Senate bills that he saw as problematic. Others have raised questions about the cost of implementing the bill.

Administration asks public to help solve government problems online

The Obama administration is challenging the public to help solve the government's problems through an online platform to debut in July.

The program aims to tap the knowledge of the masses to help simplify government operations at minimal cost to federal agencies. The ChallengePost platform will allow agencies to post their problems online and give the public an opportunity to suggest, discuss, and judge potential solutions. The initiative is part of President Obama's Open Government Directive, which attempts to increase public engagement with the federal government. The administration recently challenged agencies to increase the use of prizes and challenges as tools to promote participation.

FCC Moves to Protect Video Relay Service

On May 27, the Federal Communications Commission reiterated existing rules and adopted others, and sought comment on a broad array of other possible rule changes to further detect and deter the misuse of Video Relay Service (VRS) and the billing of illegitimate minutes to the Interstate Telecommunications Relay Service (TRS) Fund.

The Commission's goal is to eliminate unjustifiable payments to providers at American ratepayers' expense, and to eliminate the provision of service by unqualified providers or service that is not in compliance with the TRS rules. In the Declaratory Ruling portion of the item, the Commission reiterated that payments from the Interstate TRS Fund may be suspended to providers that do not submit to audits. The Order section adopts an interim rule requiring senior executives to swear to the accuracy of information providers submit to receive compensation from the TRS fund. The Notice of Proposed Rulemaking section seeks comment on ways to amend the rules to detect and prevent fraud and misuse in the provision of VRS. VRS allows persons with hearing or speech disabilities to use American Sign Language (ASL) to communicate with friends and family and to conduct business in near real time. VRS is a form of TRS in which a video link allows the caller to use ASL and a Communications Assistant to voice the message to the called party.

Free Press' Ben Scott Exits For State Department Post

Free Press Policy Director Ben Scott has been named a policy advisor for innovation at the State Department. Free Press' policy team will be headed by Research Director Derek Turner.

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