BloostonLaw Telecom Update Published by the Law Offices of Blooston, Mordkofsky, Dickens, Duffy & Prendergast, LLP [Selected portions reproduced here with the firm's permission.] www.bloostonlaw.com | Vol. 11, No. 14 | April 9, 2008 |
Martin Sees No Need For “Wireless Carterfone” Rules In Wake of Industry Embrace Of Open Platform Concept During his keynote address at the recent CTIA-The Wireless Association show in Las Vegas, FCC Chairman Kevin Martin observed that “the requirement for open access in the 700 MHz auction is leading carriers to recognize the benefits of a more open platform.” He noted that once “vocal opponents,” such as Verizon Wireless, had become “vocal proponents” of the open platform concept. “In light of the industry’s embrace of a more open wireless platform, it would be premature to adopt any other requirements across the industry,” the Chairman said. Thus, he said he would circulate to his fellow commissioners “an order dismissing a petition for declaratory ruling filed by Skype that would apply Carterfone requirements to existing wireless networks.” In February 2007, Skype asked the FCC to create “an industry-led mechanism” to ensure the openness of wireless networks (BloostonLaw Telecom Update, February 28, 2007). Specifically, Skype asked the Commission to subject the wireless industry to the Carterfone rules, which would allow consumers to use devices and software of their choice on mobile phone networks. The Carterfone rules, which were enacted in 1968 during the old Bell System monopoly era, allow consumers to hook any device up to the landline phone network, so long as it does not harm the network. Prior to the Carterfone decision, AT&T provided all telephones and devices connected to the public switched telephone network (PSTN), and it routinely sued companies that sold unauthorized products that could be attached to the network. The Carterfone itself was an acoustic coupler for land mobile radios. Invented by Tom Carter, it was used to allow radio-equipped oil field drill rigs to patch calls into the telephone network. Skype argued that the wireless market has evolved into one that is heavily controlled by wireless carriers. They dictate which phones are used on their networks, what content users can access, and which applications can run on wireless phones. Some carriers have even included specific terms in their service contracts that prevent customers from downloading and using software from Skype and others on their networks. At last week’s CTIA show, however, Martin pointed out that Verizon Wireless has said it would open its entire network to devices and applications, and that T-Mobile, Sprint, and AT&T have said they will embrace openness with applications. But Skype subsequently issued a response to Martin's remarks expressing disappointment: "Without Commission oversight in the area, the FCC will have taken a step backward away from openness, and toward a policy of 'trust the carriers.' While we are cautiously optimistic that the carriers will deliver greater openness, unfortunately, if the FCC acts on the Chairman's recommendation, it will have given up any tools to protect consumers if they do not." Although an order dismissing Skype’s petition may be circulating among the commissioners, such an item does not appear on the FCC’s agenda for its April 10 open meeting (see separate story). Google bid on C Block: In a statement last week, Google said that it had bid on the C Block in the recent 700 MHz auction. Google had said last July that it would guarantee a minimum $4.6 billion bid if the FCC would grant four license conditions the company sought for the spectrum. The FCC granted just two, giving open access to outside applications and devices, but Google decided to bid anyway. "Google's top priority heading into the auction was to make sure that bidding on the so-called 'C Block' reached the $4.6 billion reserve price that would trigger the important 'open applications' and 'open handsets' license conditions," Google wrote on its corporate blog. "We were also prepared to gain the nationwide C Block licenses at a price somewhat higher than the reserve price; in fact, for many days during the early course of the auction, we were the high bidder. But it was clear, then and now, that Verizon Wireless ultimately was motivated to bid higher (and had far more financial incentive to gain the licenses)." Google said that the auction doesn't mark the end of its efforts toward greater wireless choice and innovation. The company said it plans to “weigh in at the FCC as it sets implementation rules for the C Block, and determines how to move forward with a D Block re auction." BloostonLaw contacts: Hal Mordkofsky, John Prendergast, Cary Mitchell, and Bob Jackson. AT&T, Verizon Plan “LTE” Rollout In 700 MHz Band AT&T Mobility and Verizon Wireless separately have announced that they plan to roll out Long Term Evolution (LTE) in the 700 MHz spectrum they won in the recent Auction No. 73. LTE, the next generation network beyond 3G, promises to enable fixed to mobile migrations of Internet applications such as Voice over Internet Protocol (VoIP), video streaming, music downloading, mobile TV, and many other uses. LTE networks will also provide the capacity to support an explosion in demand for connectivity from a new generation of consumer devices tailored to those new mobile applications. AT&T said it will use the 700 MHz spectrum, as well as the Advanced Wireless (AWS) spectrum it acquired in the 2006 auction (Auction No. 66), for its 4G, LTE transition. AT&T said it has broad coverage in these spectrum bands across 95% of the population. It has a contiguous band of 20 megahertz of spectrum for 4G, LTE transition across 82% of the population in the top 100 markets. However, AT&T said its LTE technology may not be ready until 2012. Verizon Wireless, which announced last year it plans to move away from CDMA and embrace LTE as its 4G network standard, said it will deploy LTE technology across its 700 MHz spectrum. Verizon said that its new 700 MHz licenses increase its nationwide spectrum holdings from an average of 51 MHz to 82 MHz. The company paid $9.36 billion for a nationwide C Block group of licenses, plus 102 licenses for individual markets around the country. It paid $1.03 per MHz Pop, compared with the auction average of $1.20. Verizon said LTE technology will support the nation’s growing desire for high-speed data services, and predicted that data will account for as much as 50% of carriers’ revenues in the future. Verizon said such growth will come from machine-to-machine communications, navigation systems, and other advanced services, according to RCR. The new spectrum will not be cleared until mid-February 2009, however, and Verizon’s LTE rollout won’t occur until 2010. The auction’s No. 4 largest winner, Qualcomm, said it will deploy its MediaFLO mobile TV technology across its E-Block winnings. Qualcomm said its 700 MHz licenses, combined with its existing holdings, will cover more than 68 million people in 28 individual markets with MediaFLO. As for Qualcomm’s B Block licenses, which cover California-Imperial, New Jersey-Hunterdon and Yuba City, Calif., the company said it will use those holdings for research and development. Qualcomm spent $558 million on a handful of E Block and B Block licenses. Both Verizon Wireless and AT&T Mobility apparently will lag behind Sprint Nextel’s WiMAX deployment, which the carrier is in the midst of deploying. Sprint Nextel has said it will have a two-year jump on its competitors in 4G, according to RCR. The auction’s third-largest bidder, EchoStar Communications, said it does not intend to discuss its 700 MHz plans. BloostonLaw contacts: Hal Mordkofsky, John Prendergast, Cary Mitchell, and Bob Jackson. FCC’s OPEN MEETING AGENDA HEAVY WITH FORFEITURE ITEMS: The FCC’s agenda for its open meeting this Thursday, April 10, appears to be heavy with forfeiture items—perhaps in response to a recent Government Accountability Office (GAO) report that was critical of the agency’s enforcement procedures (BloostonLaw Telecom Update, March 19). At tomorrow’s meeting, the Commission is scheduled to consider (1) Notices of Apparent Liability for Forfeiture against nine consumer electronics manufacturers for violation of the Commission's requirement that digital television receivers be capable of responding to changes in the content advisory rating system; (2) Notices of Apparent Liability for Forfeiture against 14 consumer electronics retailers for violation of the Commission’s labeling requirement for television receivers capable of receiving only analog signals; (3) a Forfeiture Order and Further Notice of Apparent Liability for Forfeiture against a consumer electronics manufacturer for violation of the Commission’s rule restricting the importation and interstate shipment of analog-only television receivers and violation of the Commission’s rule prohibiting negligent misrepresentation in filings submitted to the Commission; and (4) a Notice of Apparent Liability for Forfeiture against an exercise equipment manufacturer for violation of the Commission’s rule restricting the importation and interstate shipment of analog-only television receivers. The Commission is also scheduled to consider (1) a Notice of Proposed Inquiry in response to a Petition filed by nine public safety organizations; (2) a Report and Order concerning implementation of the Warning, Alert and Response Network (WARN) Act; (3) an Order addressing petitions by TracFone Wireless, Inc. for designation as an Eligible Telecommunications Carrier (ETC), eligible only to receive universal service Lifeline support, in several states and the District of Columbia; and (4) a Report and Order and Order Proposing Modification increasing the spectrum available for code division multiple access satellite systems in the 1.6/2.4 GHz Big LEO bands to provide ancillary terrestrial component service from 11 MHz to 19.275 MHz, and technical rules to prevent interference to other services. Clients are reminded that this Commission often deletes agenda items prior to the open meeting. BloostonLaw contacts: Hal Mordkofsky, Ben Dickens, Gerry Duffy, and John Prendergast. FCC ANNOUNCES AUCTION 78 FOR UNSOLD AWS- 1, BROADBAND PCS LICENSES: The FCC has announced Auction No. 78 of licenses in multiple radio services to commence on July 29, 2008. This auction will include 55 unsold licenses: 35 licenses in the Advanced Wireless Services (AWS) 1710-1755 MHz and 2110-2155 MHz bands (AWS-1) and 20 licenses in the broadband Personal Communications Service (PCS). The spectrum to be auctioned has been offered previously in other auctions but was unsold or returned to the Commission as a result of license cancellation or termination. Interested clients should contact BloostonLaw for the specific licenses available. Note that there will be no reserve prices for the 35 AWS-1 licenses, and broadband PCS licensees will no longer be responsible for costs associated with relocating Fixed Microwave Service (FMS) operations. The Commission seeks comments on auction rules and procedures. Comments in this AU Docket No. 08-46 proceeding are due April 18, and replies are due April 25. BloostonLaw contacts: Hal Mordkofsky, John Prendergast, Cary Mitchell, and Bob Jackson. FCC GRANTS EXTENSION UNTIL APRIL 11 FOR OPPOSITIONS TO CABLE LEASED ACCESS ORDER: On February 1, the FCC released a Report and Order revising rules pertaining to commercial leased access of cable channels. On March 28, the National Cable and Telecommunications Association (NCTA) filed a Request for Stay of the new rules governing rates for commercial leased access. On April 2, the Office of Communications, Inc. of the United Church of Christ (UCC) submitted a Motion for Extension of Time to file Oppositions to the NCTA stay request. While an Opposition to the NCTA stay request would be due April 4, UCC requests an extension until April 11, 2008. On April 3, NCTA filed an Opposition to the UCC Motion. As set forth in Section 1.46 of the Commission’s Rules, the Commission’s policy is that extensions of time shall not be routinely granted. In this case, however, an extension of the time for filing Oppositions to the NCTA stay request is warranted. UCC notes that the NCTA stay request was not available until March 31, leaving UCC and other interested parties with only four days to respond. Moreover, because the new rules governing leased access rates will not go into effect until May 31, the FCC finds that a one-week extension of the time for filing Oppositions will not prejudice any party. Accordingly, the FCC grants the Motion for Extension of Time filed by UCC in MB Docket No. 07-42. The time for filing Oppositions to the NCTA stay request is extended to April 11, 2008. BloostonLaw contact: Gerry Duffy. FUTURISTIC “BIO-CHIP” HANDSETS BEING TESTED IN JAPAN: NTT DoCoMo and professors at the University of Tokyo say they have successfully demonstrated the world's first molecular delivery system for molecular communication. DoCoMo has been pioneering research into the field of molecular communication, a new communication paradigm in which molecules are used as a communication medium. By combining communication technology and biochemistry, DoCoMo aims to develop systems that could transmit information about the biochemical conditions of living organisms, such as excitement, emotion, stress or disease, according to 3G Newsletter. The experiment has confirmed the feasibility of a proposed delivery system to transport specific molecules using artificially synthesized DNAs and chemically energized motor proteins, typically found in muscles and nerve cells, which are capable of moving autonomously by converting chemical energy into mechanical work. The system, which functions on its own because it does not require external power supply or control, could help lead to the realization of a biochemical analyzer, or biochip, a fingertip-sized microchip for biological and chemical analysis. The envisioned molecular delivery system could have many applications in medicine and healthcare. For instance, it may be possible to diagnose diseases or stress by directly analyzing bio-molecules in a drop of sweat or blood using a mobile phone equipped with a biochip. The molecular delivery system would be packaged in the biochip, and the data generated in the biochemical analysis would be transmitted to a medical specialist via a mobile phone using traditional wireless technology. The system could be used, for example, for remote health checks or preventive medicine. A mobile phone with a biochip could also have applications in the fields of environment (e.g., water analysis) and entertainment (e.g., fortune telling). BloostonLaw contacts: Hal Mordkofsky, John Prendergast, Richard Rubino, Cary Mitchell, and Bob Jackson. |
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