4/7. The Office of the U.S. Trade Representative (USTR) released a report [11 pages in PDF] titled "Results of the 2006 Section 1377 Review of Telecommunications Trade Agreements".

This USTR is requires by Section 1337 of the Omnibus Trade and Competitiveness Act of 1988 to issue annual reports on the operation and effectiveness of U.S. telecommunications trade agreements. The USTR has a web page with hyperlinks to comments that it received, and to prior annual 1337 reports.

Peoples Republic of China. USTR Rob Portman (at right) stated in a release that "Countries requiring particular attention this year include: China which has yet to address the long-standing problem of excessive capitalization requirements ($240 million) for a license in the basic telecom sector (typically less than $1 million in other markets) despite US engagement with China in the JCCT)". (Parentheses in original.)

The report elaborates that "Although China has begun to discuss making changes to its capitalization requirement for telecommunications operators ($240 million per operator offering inter-regional services), it has taken no concrete steps to address this significant market access barrier." (Parentheses in original.)

It adds that this "raises questions regarding China's compliance with its WTO obligations", and that the "USTR will consider what further actions it may undertake".

The report also identifies China's discriminatory and nontransparent wireless technology standards. It states that "China is now in the process of planning to issue new licenses for third generation wireless services (3G services). China's process suffers from a lack of transparency and raises concerns that China may issue such licenses in a manner that is not in keeping with the licensing and spectrum management commitments it undertook through adoption of the basic telecommunications Reference Paper when it joined the WTO. In addition, press reports indicate that China has taken action to accord broad preferences to the development and testing of TD-SCDMA – a standard developed largely in China."

Universal Service Taxes and Subsidies. The report also identifies the use of universal service tax and subsidy regimes as barriers. Portman stated that "One issue that is particularly troubling to us is the emergence of new regulations around the world that are being billed as universal-service related, that may, in fact, limit competition or create barriers for foreign telecom operators ... USTR will continue to monitor these programs to ensure that they conform, where applicable, to WTO commitments on universal service."

The report states that "such programs do not constitute unreasonable barriers to access and use of networks", and that they should be "administered in a transparent, non-discriminatory, and competitively-neutral manner and not be more burdensome than necessary".

The report cites as examples Jamaica, Japan and India.

It states that Jamaica is subsidizing "its e-Learning Project -- a universal service program for building broadband access for schools and libraries in Jamaica." However, it is "choosing to fund this program predominantly, if not exclusively, through fees imposed on foreign operators." The report also identifies a lack of transparency in the operation of the program.

The report also states that "USTR remains concerned about Japan's universal service program. Under Japan's October 2005 program, designed to address high-cost regions, the only entities that appear eligible for this fund are the regional fixed-line operators NTT East and West. USTR has recommended to Japan that it reform this program to enable a broader range of operators, including mobile carriers, to apply for funding from this program to serve these regions."

The report also mentions "India's access deficit charge (ADC), which cross-subsidizes local service with revenue generated by long distance calls."

This report does not comment on the extent to which U.S. universal service, E-911, CALEA, and other non-economic regulatory regimes create barriers to access or use of networks, or are administered in a transparent, nondiscriminatory, and competitively neutral manner.

Mobile Termination Rates. As with prior USTR reports, this report identifies high mobile termination rates that discriminate against U.S. operators and consumers. It focuses on Germany and Japan.

The report finds that "In almost all markets with a calling party pays structure, where the regulator has investigated potential abuse by a mobile operator with ``bottleneck´´ control over reaching its subscribers, the regulator has concluded that rates the operator charged the interconnecting network have been unreasonably high. Further, in most of these cases, the regulator concluded that it needed to regulate rates. Key exceptions are Japan and Germany, where despite the existence of high rates and the regulators' findings that operators have market power, the regulator has declined to regulate rates." (Footnote omitted.)

The report also identifies Mexico, Peru, and Switzerland for its high mobile termination rates.

Access to Leased Lines and Submarine Cable Capacity. The report identifies "access to and use of leased lines and submarine cable systems" as a problem in some countries that hampers "U.S. operators' ability to enter and compete in several key markets".

The report states that "Commenters continue to argue that VSNL’s persistent refusal to permit interconnection at its cable landing stations, its potentially anti-competitive provisioning practices, and its failure to activate additional capacity on these cables, is resulting in artificial shortages of bandwidth into and out of India and inflating prices, which in turn, prevents U.S. operators from serving their global customers within India."

The report also states that "Onerous conditions for accessing leased lines in Singapore have plagued competitors in that market for the past several years, and when competitors have sought to install their own lines, SingTel – the majority government-owned, dominant carrier – has refused access to ducts it controls, creating further inefficiencies and slowing competitive entry."

CompTel is one of the groups that submitted a comment [23 pages in PDF] to the USTR. After release of the report, CompTel's Jason Oxman stated in a release that "COMPTEL in December of last year strongly urged USTR to vigorously enforce the obligations of our trading partners in an effort to foster true competition in the international communications marketplace. USTR in its annual review highlighted issues and concerns raised by COMPTEL, including fixed-to-mobile termination rates that far exceed cost and are discriminatory in Europe, Latin America and the Pacific Rim; excessive pricing and discriminatory provisioning of local access leased lines; and universal service-related concerns in Jamaica. We are pleased that USTR is working to ensure that U.S. companies have the ability to compete fairly overseas."

4/6. The Federal Communications Commission (FCC) released an agenda [4 pages in PDF] for its event titled "Open Meeting", scheduled for Wednesday, April 12, 2006. This agenda includes four spectrum related items.

First, the FCC is scheduled to adopt a Ninth Report and Order and Order establishing procedures for the relocation of Broadband Radio Service (BRS) operations in the 2150-2160/62 MHz band, which the FCC previously decided will be relocated to the newly restructured 2495-2690 MHz band, and relocation of Fixed Microwave Service (FWS) operations, including cost sharing obligations, in the 2160-2175 MHz band. This item also addresses a related petition for reconsideration. See, NPRM numbered FCC 05-172 in ET Docket No. 00-258, and WT Docket No. 02-353

Second, the FCC is scheduled to adopt an Order on Reconsideration and Fourth Memorandum Opinion and Order addressing spectrum sharing among incumbent and future services in the 2495-2500 MHz band, and a Third Memorandum Opinion and Order and Second Report and Order regarding changes to the service rules applicable to the BRS and the Educational Broadband Service (EBS).

Third, the FCC is scheduled to adopt a Public Notice addressing filing requirements, minimum opening bids, upfront payments and other procedures for Auction No. 66. This is the Advanced Wireless Services (AWS) or Third Generation (3G) auction, scheduled to start on June 29, 2006. This is AU Docket No. 06-30.

Finally, the FCC is scheduled to adopt a Memorandum Opinion and Order addressing a petition filed by the Forest Conservation Council, American Bird Conservancy and Friends of the Earth for National Environmental Policy Act Compliance.

This event is scheduled for 9:30 AM on Wednesday, April 12, 2006 in the FCC's Commission Meeting Room, Room TW-C305, 445 12th Street, SW. The event will be webcast by the FCC. The FCC does not always consider all of the items on its published agenda. The FCC sometimes adds items to the agenda without providing the "one week" notice required 5 U.S.C. § 552b. The FCC does not always start its monthly meetings at the scheduled time. The FCC usually does not release at its meetings copies of the items that its adopts at its meetings.

4/7. The Federal Communications Commission (FCC) published a notice in the Federal Register that announces, describes and sets comment deadlines for its notice of proposed rulemaking (NPRM) regarding creation of broadband channels in the 700 MHz public safety band. The FCC adopted this NPRM on March 17, 2006. See, story titled "FCC Adopts NPRM Re Public Safety Communications in the 700 MHz Band" in TLJ Daily E-Mail Alert No. 1,332, March 20, 2006. The FCC released the text [30 pages in PDF] of this NPRM on March 21, 2006. This NPRM is FCC 06-34 in WT Docket No. 96-86. Initial comments are due by June 6, 2006. Reply comments are due by July 6, 2006. See, Federal Register, April 7, 2006, Vol. 71, No. 67, at Pages 17786-17790.

4/6. President Bush sent a cover letter and proposed FY 2007 Budget amendments [23 pages in PDF] to the Speaker of the House of Representatives. This includes changes in the language for the Federal Communications Commission (FCC) budget request. The gross spending authority and offsetting collections remain unchanged. The proposed amendments state that the new language "would make all prior and future regulatory fee collections in excess of specified collections targets unavailable for obligation to correctly reflect existing policy. This balance would remain in the Salaries and Expenses account and an appropriation would be required before such funds become available for obligation. This action will not affect the Federal Communications Commission’s planned expenditures or activities."

4/5. The Government Accountability Office (GAO) released a report [53 pages in PDF] titled "Telecommunications: Weaknesses in Procedures and Performance Management Hinder Junk Fax Enforcement". The report states that the "FCC has procedures for receiving and acknowledging the rapidly increasing number of junk fax complaints, but the numbers of investigations and enforcement actions have generally remained the same. In 2000, FCC recorded about 2,200 junk fax complaints; in 2005, it recorded over 46,000. Using its procedures to review the complaints, FCC’s Enforcement Bureau (EB) issued 261 citations (i.e., warnings) from 2000 through 2005. EB has ordered six companies to pay forfeitures for continuing to violate the junk fax rules after receiving a citation. The six forfeitures totaled over $6.9 million, none of which has been collected by the Department of Justice for various reasons. EB officials cited competing demands, resource constraints, and the rising sophistication of junk faxers in hiding their identities as hindrances to enforcement."

4/6. The Senate confirmed Benjamin Powell to be General Counsel of the Office of the Director of National Intelligence. See, Congressional Record, April 6, 2006, at page S3346.

4/6. The Senate confirmed Gordon England to be Deputy Secretary of Defense. See, Congressional Record, April 6, 2006, at page S3346.

4/6. The Senate confirmed Michael Chagares to be a Judge of the U.S. Court of Appeals for the 3rd Circuit. See, Congressional Record, April 4, 2006, at page S2847.

The House will not meet on Monday, April 10, through Friday, April 21. See, Republican Whip Notice and Whip's calendar.

The Senate will not meet on Monday, April 10, through Friday, April 21. See, 2006 Senate calendar.

5:30 - 7:00 PM. The American Enterprise Institute (AEI) will host a panel discussion on the book titled Who Controls the Internet? Illusions of a Borderless World [Amazon] by Jack Goldsmith (Harvard Law School) and Timothy Wu (Columbia Law School). The speakers will be Goldsmith, Wu, Alan Davidson (Google), David Gross (Department of State), and Sebastian Mallaby (Washington Post). See, notice. Press contact: Veronique Rodman at 202-862-4870 or VRodman at aei dot org. Location: AEI, 12th floor, 1150 17th St., NW.

10:00 AM - 12:00 NOON. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet to prepare for the CITEL PCC.II (Radiocommunication including Broadcasting) meetings on June 20-23, 2006, in Lima, Peru, and on October 17-20, 2006, in San Salvador, El Salvador. See, notice in the Federal Register, March 29, 2006, Vol. 71, No. 60, at Page 15798. Location: __.

2:00 - 4:00 PM. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet to prepare for the CITEL PCC.I (Telecommunication) meetings on May 23-26, 2006 in San Domingo, Dominican Republic, and on September 12-15, 2006, in Washington DC. See, notice in the Federal Register, March 29, 2006, Vol. 71, No. 60, at Page 15798. Location: __.

6:00 - 8:15 PM. The Federal Communications Bar Association's (FCBA) Wireless Telecommunications Practice Subcommittee will host a continuing legal education (CLE) seminar titled "After The Auction: Relocation Issues in the AWS Spectrum". The speakers will be Gary Patrick (National Telecommunications and Information Administration) and Mark Gibson (Comsearch). See, registration form [PDF]. The price to attend ranges from $50 to $125. Registrations are due by 12:00 NOON on Friday, April 7. Location: Sidley Austin, 1501 K Street, NW, 6th Floor.

9:30 AM. The Federal Communications Commission (FCC) will hold a meeting. The event will be webcast by the FCC. Location: FCC, 445 12th Street, SW, Room TW-C05 (Commission Meeting Room).

10:00 AM. The Securities and Exchange Commission's (SEC) Advisory Committee on Smaller Public Companies will hold a public meeting by webcast and teleconference. See, notice [PDF]. For more information, contact Kevin O’Neill at 202-551-3260.

12:00 NOON - 2:00 PM. The DC Bar Association will host a panel discussion titled "USTR’s ``Top-to-Bottom´´ Review of U.S.-China Trade Policy: Where Do We Go From Here?". The speakers will include Timothy Stratford (Assistant U.S. Trade Representative for China Affairs), Angela Ellard (Staff Director and Counsel, Subcommittee on Trade, House Ways and Means Committee), Timothy Reif (Chief Democratic Trade Counsel, House Ways and Means Committee), Patricia Mears (National Association of Manufacturers), Erin Ennis (US-China Business Council), and Mary Patricia Michel (McKenna Long & Aldridge). The price to attend ranges from $5-$25. For more information, call 202-626-3463. See, notice. Location: D.C. Bar Conference Center, 1250 H Street NW, B-1 Level.

2:00 - 4:00 PM. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet to prepare for a meeting of the ITU Council. See, notice in the Federal Register, March 29, 2006, Vol. 71, No. 60, at Page 15798. Location: __.

Passover.

2:00 - 4:00 PM. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet to prepare for the 33rd meeting of Asia-Pacific Economic Community Telecommunications and Information Working Group (APEC TEL) in Calgary, Canada, on April 23-28, 2006. See, notice in the Federal Register, March 29, 2006, Vol. 71, No. 60, at Page 15798. Location: Verizon Communications, 1300 Eye St., NW.

Good Friday.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking (NPRM) [52 pages in PDF] regarding the assessment and collection of regulatory fees for fiscal year 2006. This NPRM is FCC 06-38 in MD Docket No. 06-68. See, notice in the Federal Register, April 6, 2006, Vol. 71, No. 66, at Pages 17410-17433.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking (NPRM) regarding privacy of consumer phone records. See, notice in the Federal Register, March 15, 2006, Vol. 71, No. 50, at Pages 13317-13323. The FCC adopted this NPRM on February 10, 2006, and released the text [34 pages in PDF] on February 14, 2006. See, story titled "FCC Adopts NPRM Regarding Privacy of Consumer Phone Records" in TLJ Daily E-Mail Alert No. 1,308, February 13, 2006, and story titled "FCC Rulemaking Proceeding on CPNI May Extend to Internet Protocol Services" in TLJ Daily E-Mail alert No. 1,310, February 15, 2006. This NPRM is FCC 06-10 in CC Docket No. 96-115 and RM-11277.

Easter.

12:00 NOON - 1:30 PM. The Federal Communications Bar Association's (FCBA) Diversity Committee will host a brown bag lunch. The topic will be "Impact of Broadband on Telecommunications Relay Service (TRS)". The speakers will be Karen Strauss, Ed Bosson (Texas TRS Administrator), Kelby Brick (National Association of the Deaf), Joe Douglas (NECA), Claude Stout (TDI Executive Director). RSVP to Colin Sandy at 202-682-2496 or csandy at neca dot org. Location: Reed Smith, 1301 K Street, NW, Suite 1100- East Tower 11B.

5:00 PM. Deadline to submit comments to the Library of Congress's (LOC) Section 108 Study Group in response to the LOC's notice in the Federal Register regarding, among other topics, expanding the scope of 17 U.S.C. § 108 to exempt Google type copying of books, and to exempt the copying of entire web sites. See, notice in the Federal Register, February 15, 2006, Vol. 71, No. 31, at Pages 7999-8002.

4/3. The Government Accountability Office (GAO) released a report [93 pages in PDF] titled "Personal Information: Agency and Reseller Adherence to Key Privacy Principles".

The report addresses how four government agencies, the Department of Justice (DOJ), Department of Homeland Security (DHS), Department of State (State), and the Social Security Administration (SSA), make use of personal information obtained through contracts with information resellers.

The report states that "Justice, DHS, State, and SSA reported using personal information from information resellers for a variety of purposes, including law enforcement, counterterrorism, fraud prevention, and debt collection. Taken together, approximately 91 percent of planned spending on resellers reported by the agencies for fiscal year 2005 was for law enforcement (69 percent) or counterterrorism (22 percent). For example, components of the Department of Justice (the largest user of resellers) made use of such information for criminal investigations, location of witnesses and fugitives, research of assets held by individuals of interest, and detection of fraud in prescription drug transactions. Examples of uses by the DHS include immigration fraud detection and border screening programs. SSA and State acquire personal information from information resellers for fraud detection and investigation, identity verification, and benefit eligibility determination."

Second, the report addresses the extent to which five information resellers (ChoicePoint, LexisNexis, Acxiom, Dun & Bradstreet, and West) that provided personal information to these four government agencies have policies and practices in place that reflect the Fair Information Practices (FIP).

The report states that these five data aggregators "have practices in place to protect privacy, but these measures are not fully consistent with the Fair Information Practices." It adds that "the nature of the information reseller business is largely at odds with the principles of collection limitation, data quality, purpose specification, and use limitation."

Third, the report addresses the extent to which these four government agencies have policies and practices in place for the handling of personal data from resellers that reflect FIP.

The report finds that their "practices for handling personal information acquired from information resellers reflected the principles of the Fair Information Practices in four cases and in the other four did not. ... Specifically, agencies did not always have practices in place to fully address the purpose specification, individual participation, openness, and accountability principles with regard to use of reseller information."

For example, it states that "some agencies lack robust audit mechanisms to ensure that use of personal information from information resellers is for permissible purposes", thereby violating the accountability principle.

4/7. The U.S. Department of Justice's (DOJ) Antitrust Division and the Federal Trade Commission (FTC) published a notice in the Federal Register that announces the the DOJ and FTC will conduct a series of joint hearings in Washington DC in June, July, September, October, November and December regarding how best to identify anticompetitive exclusionary conduct for purposes of antitrust enforcement under section 2 of the Sherman Act. The DOJ and FTC announced on March 30 that they would hold these joint hearings. However, they have yet to announce the dates and specific topics of any of the hearings. See, Federal Register, April 7, 2006, Vol. 71, No. 67, at Pages 17872-17874.

4/7. The U.S. Patent and Trademark Office (USPTO) announced the top thirteen U.S. universities in number of patents granted in 2005. See, USPTO release.

4/6. The U.S. District Court (NDCal) issued its final judgment and permanent injunction [29 pages in PDF] in FTC v. Optin Global, Inc., holding that the defendants violated the FTC Act, the CAN SPAM Act, and various California state statutes in connection with their sending commercial email messages. See also, FTC release. The Federal Trade Commission (FTC) and the state of California filed their civil complaint [24 pages in PDF] on April 12, 2005. See, story titled "FTC Files CAN SPAM Act Complaint" in TLJ Daily E-Mail Alert No. 1,115, April 14, 2005. This case is numbered Civil Action No. C-05-1502 SC.

3/31. The Securities and Exchange Commission (SEC), Federal Reserve Board (FRB), Department of the Treasury, and other financial services regulators, released a report written by Kleimann Communication Group titled "Evolution of a Prototype Financial Privacy Notice". It  summarizes consumer research commissioned by the regulators regarding improving financial privacy notices mandated by the Gramm Leach Bliley Act. See also, SEC release.

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