Background. US West (now Qwest) is the incumbent local exchange carrier (ILEC) in the state of Arizona. Following passage of the Telecommunications Act of 1996, US West failed to negotiate interconnection agreements with competitive local exchange carriers (CLECs) operating in Arizona. It petitioned the Arizona Corporations Commission, which is the public utilities commission (PUC) in Arizona, to arbitrate. The ACC arbitrated various interconnection agreements.

District Court. Various lawsuits were then filed in U.S. District Court (DAriz) challenging these agreements. These lawsuits were consolidated. The District Court affirmed some provisions of the various interconnection agreements, and rejected others.

Appeals Court. These consolidated appeals followed. The Appeals Court affirmed in part and reversed in part. This appeal raised the questions of whether the terms of the interconnection agreements are consistent with the 1996 Act, and whether Federal Communications Commission (FCC) regulations that took effect after the ACC's decisions are applicable. Appeals Court held that the FCC regulations are applicable, thus reversing the District Court on this issue. The Appeals Court then went on to apply those regulations to the provisions of the interconnection agreements, including provisions pertaining to: cable sheath mileage; four wire loop price; geographic deaveraging; conditions on access to subloops; reciprocal access to poles, ducts, conduits, and rights of way; collocation of remote switching units; single points of access; tandem switch rates; conditions on resale of centrex services; non-recurring charges for unbundled network elements; and conditions on access to dark fiber.

The HTBC has filed numerous comments with the FCC in various FCC proceedings which pertain to broadband regulation. See for example, July 1, 2002 comments [PDF], April 7, 2002 comments [PDF], June 17, 2002 comments [PDF], July 17, 2002 comments of the HTBC.

Microsoft further stated in its letter that "The content, applications and devices that have proliferated as the Internet has become a mass market medium have proliferated in large measure because innovators have been able to rely on the fact that, in the dial-up world, the provider of the underlying facility does not -- and indeed cannot -- discriminate against the types of information traversing its system or the devices that are attached to that system." Microsoft added that "it is not clear that those norms -- and thus the benefits that flow from them -- will prevail in the broadband world envisioned by the Commission's NPRMs."

Microsoft was represented at the meetings by their counsel, Scott Harris of the law firm of Harris Wiltshire & Grannis, and by Craig Mundie, Marc Berejka and Pierre De Vries of Microsoft. They met with Bill Maher (the new Chief of the FCC's Wireline Competition Bureau), Jeffrey Carlisle (Senior Deputy Bureau Chief), Scott Bergmann (Legal Counsel), Jessica Rosenworcel (Legal Counsel), Jane Jackson (Associate Bureau Chief), Michelle Carey, and Brent Olson. They also met separately with Ken Ferree (Chief of the FCC's Media Bureau), Deborah Klein (Chief of Staff), Bill Johnson (Deputy Bureau Chief), Barbara Esbin (Associate Bureau Chief), Peggy Greene (Associate Bureau Chief), Eric Bash and John Norton.

The letter referenced several open FCC proceedings, GN Docket No. 00-185, CS Docket No. 02-52, CC Docket No. 02-33, and CC Docket Nos. 95-20 and 98-10.

The report was prepared for Rep. Mike Oxley (R-OH), Chairman of the House Financial Services Committee (HFSC), Rep. John LaFalce (D-NY), ranking Democrat on the HFSC, Rep. Spencer Bachus (R-AL), Chairman of the Subcommittee on Financial Institutions and Consumer Credit, and Rep. Sue Kelly (R-NY), Chairman of the Subcommittee on Oversight and Investigation. This Committee has jurisdiction over Internet gambling to the extent that financial instruments are involved.

HR 556, which is sponsored by Rep. Jim Leach (R-IA), and HR 2579, the Internet Gambling Payments Prohibition Act, which is sponsored by Rep. John LaFalce (D-NY), both attempt to stop illegal gambling over the Internet by prohibiting the use of certain financial instruments, including credit extended via a credit card, electronic fund transfers, and checks.

The HFSC amended and approved HR 556 on October 31, 2001. See, story titled "House Committee Passes Internet Gambling Funding Bill" in TLJ Daily E-Mail Alert No. 299, November 1, 2001. The GAO report states that "In your letter dated September 10, 2002, you noted plans to bring H.R.556, the Unlawful Internet Gambling Funding Prohibition Act, to the House floor for debate later this month."

The GAO labeled this report an "interim report". It added that it will complete a "final report" in November 2002. This will be after the 107th Congress has completed its work, unless there is a lame duck special session after the November elections.

The report is based on the premise that an analysis of government policy with respect to promotion of broadband deployment is divisible into two sets of issues -- supply side issues, and demand side issues.

The report states that "many nations, states, cities and communities are trying to accelerate the deployment and usage of broadband networks. To date, these efforts have predominantly focused on the supply side -- promoting infrastructure build-out and determining appropriate competition and regulatory policies." However, the report continues, "It is also important and appropriate to consider the demand side -- factors impacting business and consumer uptake."

The report notes that the Federal Communications Commission (FCC) and National Telecommunications and Information Administration (NTIA) are focused on supply side issues, while the President's Council of Advisers on Science & Technology (PCAST) and the Technology Administration are focused on demand side issues.

The TA report continues that "There are several factors that impact the robustness of demand. For consumers these include concerns over cost; disappointment with the quality and types of content available, especially lack of movies, music and local information; inadequate customer support and lack of plug and play consumer premises equipment; and lack of confidence in the Internet due to security and privacy concerns. For businesses, barriers to greater broadband demand stem from price concerns (exacerbated by economic uncertainty); lack of access to DSL or cable; failure to perceive the returns on investment in broadband; lack of understanding about how to implement broadband business solutions that make sense for company strategy; and concerns over security and other legal uncertainties." (Parentheses in original.)

The report argues that "federal, state and local leaders can take steps to accelerate broadband demand ... actions to accelerate demand are justified and valuable."

The report identifies four things that determine demand for broadband: cost, content, convenience and confidence.

The report then lists and discusses several things government can do to impact demand. The federal government should support business investment in broadband equipment, support R&D new applications and technologies, create compelling content and leading by example, protect intellectual property, oppose taxation of new content and online services, promote efficient and broadband friendly management of radio spectrum, and promote consumer confidence and cyber security, ensure free flow of goods, services and ideas online.

With respect to intellectual property rights, the report states that "governments can take several steps to strengthen the intellectual property rights framework. By prosecuting clear violations of law, educating citizens and students to respect IPR in the digital medium, protecting consumers’ interests (such as fair use rights), and encouraging market players to cooperate and coordinate, the federal government hopes to increase the pace with which movies and music venture online." (Parentheses in original.)

The TA report also states that state and local government should consider "bandwidth when addressing issues such as rights of way, taxes and application fees, tower siting, zoning, building and construction codes, building access, franchise agreements, historic preservation and environmental protections."

9/23. The Federal Communications Commission (FCC) released a second Notice of Apparent Liability for Forfeiture in a proceeding titled "In the matter of ASC Telecom, Inc. d/b/a Alternatel", in which it proposed to assess a forfeiture of $1,440,000 for 16 violations of its OSP rules.

9/23. The Commerce Department's Bureau of Industry and Security (formerly known as the Bureau of Export Administration) published a notice in the Federal Register containing its final rule amending the Export Administration Regulations (EAR) to provide which "space qualified'' items and telecommunications items for use on board satellites are controlled on the Commerce Control List (CCL) and are therefore subject to the EAR. This rule also removes the License Exception eligibility and amends the CCL for certain "space qualified'' items. See, Federal Register, September 23, 2002, Vol. 67, No. 184, at Pages 59721 - 59733.

9/23. Securities and Exchange Commission (SEC) Chairman Harvey Pitt gave a speech to the Council of Institutional Investors' Fall Conference in New York, New York. He also gave a speech at the September Symposium On Corporate Governance and Accounting Reform in Washington DC on September 20.

9/23. The Department of Justice (DOJ) issued a release in which it stated that the DOJ announced "three new guidelines designed to institutionalize the ongoing sharing of information between federal law enforcement and the U.S. intelligence community".

Day two of a three day conference and exhibit titled "Biometric Consortium Conference (BC2002)". The conference is sponsored by the NIST's Information Technology Laboratory (ITL) and the Advanced Technology Program (ATP), the NSA, the DOD's Biometrics Management Office, the GSA, the Federal Technology Service (FTS) Center for Smart Card Solutions, and the state of West Virginia. The price to attend is $260. See, conference web site and agenda. Location: Hyatt Regency Crystal City, Arlington, VA.

9:00 AM. The House Commerce Committee's Subcommittee on Commerce, Trade, and Consumer Protection will hold a hearing on HR 4678, the Consumer Privacy Protection Act of 2002, sponsored by Rep. Cliff Stearns (R-FL). The scheduled witnesses include John Palafoutas (AeA), Philip Servidea (NCR, on behalf of the Computer Systems Policy Project), John Schall (National Business Coalition on E-Commerce and Privacy), and Rebecca Whitener (EDS Security & Privacy Services). Web cast. Location: Room 2322, Rayburn Building.

10:00 AM. The House Commerce Committee's Subcommittee on Oversight and Investigations will hold a hearing titled "Capacity Swaps by Global Crossing and Qwest: Sham Transactions Designed to Boost Revenues?" See, notice. The scheduled witnesses include Patrick Joggerst (formerly with Global Crossing), Roy Olofson (formerly with Global Crossing), Robin Szeliga (Qwest Communications), Jackie Armstrong (Global Crossing), Robin Wright (formerly with Global Crossing), Greg Casey (formerly with Qwest), Susan Chase (Qwest), Kym Smiley (formerly with Qwest), and Ken Floyd (FLAG Telecom). Web cast. Press contact: Ken Johnson or Arturo Silva at 202 225-5735. Location: Room 2123, Rayburn Building.

10:00 AM. The Senate Judiciary Committee's Subcommittee on Judiciary Administrative Oversight and the Courts will hold a hearing titled "The DC Circuit: The Importance of Balance on the Nation's Second Highest Court". The scheduled witnesses include Abner Mikva (former Judge of the DC Circuit), Fred Fielding (Wiley Rein & Fielding), Christopher Schroeder (Duke University School of Law), Brad Clark (GWU Law School), and Michael Gottesman (Georgetown University Law Center). See, notice. Sen. Charles Schumer (D-NY) will preside. Press contact: Mimi Devlin at 202 224-9437. Location: Room 226, Dirksen Building.

11:00 AM. The Cato Institute will host a policy forum titled "Digital Pearl Harbor: How Real Is the Cybersecurity Threat, and Who's Responsible Anyway?" The scheduled speakers include Howard Schmidt (Federal Office of Cybersecurity), Ken Silva (Verisign), Ira Parker (Genuity), and Scott Charney (Microsoft). See, notice and online registration page. Lunch will follow the program. Location: Cato, 1000 Massachusetts Ave., NW.

12:15 PM. The FCBA's Young Lawyers Committee will host a brown bag lunch to "discuss FCC's recent order mandating that consumer electronics manufacturers install digital television tuners in almost all new TVs, as well as TV interface devices such as VCRs". The scheduled speakers are Lynn Claudy (NAB), Michael Petricone (CEA), and Valerie Schulte (NAB). RSVP to Ryan Wallach at rwallach @willkie.com. Location: Willkie Farr & Gallagher, 1875 K Street, NW.

CLOSED TO THE PUBLIC. 5:30 PM. Meeting of a legislative executive working group on the Foreign Sales Corporation (FSC) and Extraterritorial Income Exclusion Act (ETI) issue. Location: Room 211, Dirksen Building.

Deadline to submit opposition comments to the Copyright Office (CO) regarding the motion for stay filed by various broadcasters of the CO's final rule that provides that transmissions of a broadcast signal over a digital communications network are not exempt from copyright liability under 17 U.S.C. § 114(d)(1)(A). See, notice in the Federal Register.

Day three of a three day conference and exhibit titled "Biometric Consortium Conference (BC2002)". See, conference web site and agenda.

8:30 AM - 12:00 NOON. The FCC's North American Numbering Council will meet. Location: FCC, 445 12th Street, SW, Room TW-C305.

LOCATION CHANGE. 10:00 AM. The House Commerce Committee's Subcommittee on Telecommunications and the Internet will hold a hearing on the transition to digital television. See, draft of proposed bill [16 pages in PDF] and summary of draft bill. Web cast. Press contact: Ken Johnson or Jon Tripp at 202 225-5735. Location: Room 2322, Rayburn Building.

10:00 AM. The House Financial Services Committee's Subcommittee on Financial Institutions will hold a hearing on HR 5414, the Check Clearing for the 21st Century Act. Location: Room 2128, Rayburn Building.

12:15 PM. The FCBA's Online Communications Committee will host a brown bag lunch. The topic will be the Bush Administration's just released report titled "National Strategy to Secure Cyberspace". The speakers will be John Tritak (Director, Critical Infrastructure Assurance Office) and Tom Orlowski (VP of Information Systems, NAM). RSVP to bviera @kelleydrye.com. Location: Kelley Drye & Warren, 1200 19th St., Suite 500.

12:30 PM. The House Judiciary Committee's Subcommittee on Commercial and Administrative Law will hold a legislative hearing on HR 4869, the "Satellite Radio Freedom Act", and HR __, a bill to provide an exemption from local taxation for direct to subscriber satellite service providers. Location: Room 2141, Rayburn Building.

TIME CHANGE. 9:00 AM. The House Judiciary Committee's Subcommittee on Court, the Internet and Intellectual Property will hold a hearing on HR 5211, sponsored by Rep. Howard Berman (D-CA). The bill is sometimes referred to as the "peer to peer piracy protection act" or the "Berman bill". The witnesses include Hilary Rosen (RIAA), Randy Saath (Media Defender), Phil Galdston (songwriter), Gigi Sohn (Public Knowledge). Location: Room 2141, Rayburn Building.

10:00 AM. The House Commerce Committee's Subcommittee on Commerce, Trade and Consumer Protection will hold a hearing titled "State Impediments to E-Commerce: Consumer Protection or Veiled Protectionism?" Rep. Cliff Stearns (R-FL) will preside. Press contact: Ken Johnson or Jon Tripp at 202 225-5735. Location: Room 2322, Rayburn Building.

10:00 AM. The Senate Judiciary Committee will hold a hearing to examine pending judicial nominations. Sen. Charles Schumer (D-NY) will preside. See, notice. Press contact: Mimi Devlin at 202 224-9437. Location: Room 106, Dirksen Building.

10:00 AM. The Senate Health, Education, Labor, and Pensions Committee will hold a hearings on web based education. Location: Room 430, Dirksen Building.

12:00 NOON. The FCBA will host a lunch. The speaker will be Duane Ackerman, CEO of BellSouth. The price to attend is $45 for members, $35 for government persons and law student members, and $55 for non-members. Registrations and cancellations are due by 5:00 PM on September 23. Location: Mayflower Hotel, 1127 Connecticut Ave., NW, State Ballroom.

3:00 PM. Niva Koren (University of Haifa Faculty of Law) will present at paper titled "Seizing Power in the Information Environment: The Comeback of the State", as a part of the George Washington University Law School Intellectual Property Workshop Series. For more information, contact Prof. Robert Brauneis at 202 994-6138. Location: Clinic Moot Court Room H 105, 716 20th Street, NW.

7:30 - 9:30 AM. The U.S. Chamber of Commerce will host a breakfast and panel discussion for technology professionals titled "Partnering Insights for Challenging Times". The scheduled speakers are Patrick Sweeney (ServerVault), Shane Oleson (Keymind division of Axiom Resources Management), Tim Grimes (Siemens Enterprise Networks), and Val Sriban (META Group). See, notice and registration page. The price to attend is $35 for the general public, and $25 for members of Partnerpoint, the U.S. Chamber, and co-sponsoring organizations. Location: U.S. Chamber of Commerce, 1615 H Street, NW.

TIME? The Federal Accounting Standards Advisory Board (FASAB) will meet to discuss issues related inter-entity costs, the Credit Reform Task Force, and other matters. See, notice in Federal Register. Location: Room 2N30, GAO Building.

Deadline to submit reply comments to the FCC regarding WorldCom's August 8, 2002, petition for declaratory ruling pursuant to 47 C.F.R. § 1.2, that requesting carriers are entitled to access ILEC Line Information Database data at cost based rates when they use such data to provide interexchange and exchange access service. This is CC Docket No. 01-338. See, FCC notice [PDF].

Deadline to submit reply comments to the Copyright Office (CO) regarding the motion for stay filed by various broadcasters of the CO's final rule that provides that transmissions of a broadcast signal over a digital communications network are not exempt from copyright liability under 17 U.S.C. § 114(d)(1)(A). See, notice in the Federal Register.

Third of three deadlines to submit proposals to the NIST for FY 2002 Advanced Technology Program (ATP) funds. See, notice in Federal Register.

Deadline to submit comments to the FCC in response to it Public Notice [7 pages in PDF] regarding relief for the Auction No. 35 winners. The FCC asks for public comments regarding two possible scenarios for providing relief to the winning bidders in the January 2001 re-auction of spectrum previously auctioned to NextWave: full refund and option to dismiss all pending applications, and selective opt out for pending applications.

Deadline to submit comments and Notices of Intention to Participate to the Copyright Office "royalty fees collected for calendar year 2000 under the section 111 cable statutory license". The CO seeks comments "as to whether a Phase I or Phase II controversy exists as to the distribution of those fees, and a Notice of Intention to Participate in a royalty distribution proceeding." See, notice in the Federal Register.

Deadline to submit comments and proposals to the Copyright Office (CO) regarding data format and delivery for record keeping requirements to be established by the CO for the Section 112 and 114 statutory licenses. See, notice [8 pages in PDF].