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June 11, 2007, Alert No. 1,593.
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Supreme Court Seeks OSG Brief in Sprint Nextel v. NASUCA

6/11. The Supreme Court of the United States (SCUS) issued an order in Sprint Nextel v. NASUCA, Sup. Ct. No. 06-1184. It states in full that "The Solicitor General is invited to file a brief in this case expressing the views of the United States." See, Orders List [11 pages in PDF], at page 2. The SCUS has not yet decided whether or not to take this case.

At issue is whether states can impose taxes on wireless services, and also prevent the wireless carriers from collecting these taxes through line items on their bills. States seek to impose taxes, and conceal those taxes from consumers. Also, wireless carriers offer uniform national service rates. Taxation and regulation of line items on bills that varies by state compels wireless carriers to either offer state by state business models, or not collect taxes on a state by state basis. The Federal Communications Commission (FCC) issued an order preempting such state by state regulation of line items. The Court of Appeals vacated. The legal issues for the SCUS go to Chevron deference.

This is a case pertaining to 47 U.S.C. § 332(c)(3)(A). Subsection 332(c)(3)(A) provides in part that "no State or local government shall have any authority to regulate the entry of or the rates charged by any commercial mobile service or any private mobile service, except that this paragraph shall not prohibit a State from regulating the other terms and conditions of commercial mobile services".

On July 31, 2006, the U.S. Court of Appeals (11thCir) issued its opinion [44 pages in PDF] in NASUCA v. FCC, petitions for review of the FCC's order preempting the states from requiring or prohibiting the use of line items in customer billing for cellular wireless services.

The Court of Appeals granted the petition. It held that the FCC exceeded its authority when it preempted the states from requiring or prohibiting the use of line items. It wrote that "The scope of federal authority to regulate ``rates´´ or ``entry´´ does not include the presentation of line items on cellular wireless bills. ... This billing practice is a matter of  ``other terms and conditions´´ that Congress intended to be regulable by the states."

See, story titled "11th Circuit Rules on Preemption of State Regulation of Wireless Services" in TLJ Daily E-Mail Alert No. 1,430, August 11, 2006.

The Petition for Writ of Certiorari [34 pages in PDF], filed by Sprint Nextel and T-Mobile USA, states that the two issues are first, "Whether the Eleventh Circuit correctly held, under Step One of the analysis set forth in Chevron U.S.A. Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837 (1984), that the FCC erred in ruling that state and local laws prohibiting line item charges on wireless bills were preempted under Section 332(a)(c)(A)", and second, "Whether the Eleventh Circuit erred by applying the presumption against preemption to guide its analysis of Section 332(c)(3)(A) under Chevron Step One."

The Petition states that "wireless carriers typically use ``line items´´ -- discrete charges on their bills that may vary by jurisdiction -- to collect taxes and fees. They do so in order to make clear that some charges result from taxes and fees and because the use of line items permits carriers to collect taxes and fees only from subscribers in the taxing jurisdiction."

It continues that "States and localities increasingly have imposed taxes and fees on wireless service. They also have recently taken steps to hide those taxes and fees from consumers by prohibiting wireless carriers from using line items to collect them."

See also, NASUCA's opposition brief [PDF].

This case is Sprint Nextel Corporation, et al. v. National Association of State Utility Consumer Advocates, et al., Sup. Ct. No. 06-1184, a petition for writ of certiorari to the U.S. Court of Appeals for the 11th Circuit, App. Ct. Nos. 05-11682 and 05-12601.

Sprint Nextel is represented by Christopher Wright of the law firm of Harris Wiltshire & Grannis. He is a former General Counsel of the Federal Communications Commission (FCC). The NASUCA is represented by Patrick Pearlman of the State of West Virginia Public Service Commission.

See also, Supreme Court docket.

Supreme Court Grants Cert in ADEA Case Against Sprint

6/11. The Supreme Court of the United States (SCUS) granted certiorari in Sprint/United Management v. Mendelsohn, Sup. Ct. No. 06-1221.

Ellen Mendelsohn was terminated by Sprint as part of a reduction in force (RIF). She was 51. She filed a complaint in the U.S. District Court (DKan) alleging violation of the Age Discrimination in Employment Act (ADEA), which is codified at 29 U.S.C. §§ 621-634.

The trial jury returned a verdict in favor of Sprint, after the District Court had excluded testimonial evidence from other former Sprint employees who alleged similar discrimination during the same RIF.

The U.S. Court of Appeals (10thCir) reversed on the evidentiary issue. See, opinion.

And now, the Supreme Court has agreed to hear the case. The Supreme Court wrote in full that "The motion of Equal Employment Advisory Council, et al. for leave to file a brief as amici curiae is granted. The motion of AT&T Mobility LLC, et al. for leave to file a brief brief as amici curiae is granted. The petition for a writ of certiorari is granted." See, Orders List [11 pages in PDF], at pages 2-3.

This case is Sprint/United Management Co. v. Ellen Mendelsohn, Sup. Ct. No. 06-1221, a petition for writ of certiorari to the U.S. Court of Appeals for the 10th Circuit, App. Ct. No. 05-3150. The Court of Appeals heard an appeal from the U.S. District Court for the District of Kansas, D.C. No. 03-CV-02429-KHV.

See also, Supreme Court docket.

8th Circuit Rules in Reciprocal Compensation Case

6/11. The U.S. Court of Appeals (8thCir) issued its opinion [14 pages in PDF] in Alma Communications v. Missouri PSC and T-Mobile USA, a reciprocal compensation case.

The Court of Appeals wrote that "This case presents the question of whether land-line telephone calls to cell phones within the same locale are treated as local calls or long-distance calls by the FCC." The District Court held that under Federal Communications Commission (FCC) regulations these calls are to be treated as local calls, even when they are routed through a long distance provider. The Court of Appeals affirmed the judgment of the District Court.

Alma Communications Company, and other rural phone companies, argued that these calls should be treated as long distance calls.

This case is Alma Communications Company v. Missouri Public Service Commission and T-Mobile USA, App. Ct. No. 06-2401, an appeal from the U.S. District Court for the Western District of Missouri.

FCC Announces Members and Mission of Consumer Advisory Committee

6/8. The Federal Communications Commission (FCC) announced that it has rechartered its Consumer Advisory Committee (CAC), and that FCC Chairman Kevin Martin has appointed its members.

The FCC's Public Notice [PDF] (DA 07-2426) lists the 26 persons appointed to the CAC. Debra Berlyn of the Digital Television Transition Coalition will chair the CAC. Verizon, Echostar, Cablevision and the Consumer Electronics Association (CEA) will all have representatives on the CAC.

Rep. John Dingell (D-MI), the Chairman of the House Commerce Committee (HCC), stated in a release that "It is most curious, however, that there is no representative from the broadcasting industry on a committee that is supposed to advise on policy affecting the digital television transition. I hope the Commission will consider correcting this omission as it proceeds, and I look forward to receiving its full consumer education plan shortly."

The FCC states that a "principal focus" of the CAC will be "the digital television transition". It will also address "Consumer protection and education (e.g., cramming, slamming, consumer friendly billing, detariffing, bundling of services, Lifeline/Linkup programs, customer service, privacy, telemarketing abuses, and outreach to underserved populations, such as Native Americans and persons living in rural areas)." (Parentheses in original.)

The CAC will also address "Access by people with disabilities (e.g., telecommunications relay services, video description, closed captioning, accessible billing and access to telecommunications products and services)."

It will also address the "Impact upon consumers of new and emerging technologies (e.g., availability of broadband, digital television, cable, satellite, low power FM, and the convergence of these and emerging technologies)."

The CAC will next meet on Friday, August 10, 2007, in the FCC's Commission Meeting Room.

More FCC News

6/8. The Federal Communications Commission (FCC) released a Public Notice [5 pages in PDF] (DA 07-2417) that sets deadlines to submit comments or petitions to deny (July 9, 2007) and responses or oppositions (July 24, 2007) pertaining to the FCC's review of the proposed merger of XM Satellite Radio Holdings, Inc. and Sirius Satellite Radio, Inc.

6/8. The Federal Communications Commission (FCC) announced that it will hold a hearing regarding broadcast localism in Portland, Maine, on Thursday, June 28, 2007. See, FCC release [PDF].

6/8. The Federal Communications Commission (FCC) announced that it has rechartered its Intergovernmental Advisory Committee (IAC). The FCC stated in a Public Notice [2 pages in PDF] (DA 07-2427) that the IAC is comprised of 15 representatives from local, state and tribal governments and advises the FCC "on a range of telecommunications issues for which their governments explicitly or inherently share responsibility or administration" with the FCC. These include the transition to digital television, "homeland security and public safety; impact of new and emerging technologies, provision of telecommunications services in rural and underserved areas, broadband deployment, access by persons with disabilities and consumer education and outreach generally."

More News

6/11. The Supreme Court of the United States (SCUS) is nearing the end of its term. It released five opinions on Monday, June 11, 2007. However, it has yet to issue its opinion in Tellabs, Inc. and Richard Notebaert v. Makor Issues & Rights, Ltd., et al., Sup. Ct. No. 06-484, a petition for writ of certiorari to the U.S. Court of Appeals for the 7th Circuit, App. Ct. No. 04-1687. This is a case regarding the heightened pleading requirements of the Private Securities Litigation Reform Act (PSLRA). The SCUS heard oral argument on March 28, 2007. See also, Supreme Court docket.

6/8. The National Telecommunications and Information Administration (NTIA) released a report titled "A Public Safety Sharing Demonstration", which pertain to Washington DC's Wireless Accelerated Responder Network (WARN). This report states that "The WARN system is a broadband, public safety wireless network providing citywide coverage to the District. It was created to fill a need of first responders to exchange large amounts of data wherever emergency services are required. WARN provides high bandwidth access to streaming video, large files and images, specialized emergency response databases as well as standard desktop applications such as email and instant messaging. The system operates in the 700 MHz band using an experimental license provided by the Federal Communications Commission (FCC). It includes 12 fixed transmission sites and roughly 200 subscribers." The report continues that this system, which became operational in January of 2005 "improved collaboration between federal and District agencies", and "revealed several areas to improve future public safety solutions, including the need for increased broadband coverage." See also, NTIA release.

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Washington Tech Calendar
New items are highlighted in red.
Tuesday, June 12

The House will meet at 9:00 AM for morning hour, and at 10:00 AM for legislative business. It will consider HRes 455 [LOC], a resolution regarding "National Internet Safety Month", under suspension of the rules, HR 251 [LOC | WW], the "Truth in Caller ID Act of 2007", under suspension of the rules, and HR __, the FY 2008 appropriations bill for the Department of Homeland Security (DHS), subject to a rule. See, Rep. Hoyer's weekly calendar [PDF] and daily calendar [PDF].

10:00 AM. The Senate Finance Committee (SFC) will hold a hearing titled "Trade Enforcement for a 21st Century Economy". The witnesses will be Dan Glickman (Motion Picture Association of America), Jennifer Hillman (Georgetown Law School), Robert Lighthizer (Skadden Arps Meagher & Flom), and Erik Autor (National Retail Federation). See, notice. Location: Room 215, Dirksen Building.

10:00 AM. The Senate Commerce Committee (SCC) will hold a hearing titled "Universal Service Fund: Assessing the Recommendations of the Federal-State Joint Board". The witnesses will be Deborah Tate (Federal Communications Commission), John Rooney (P/CEO of U.S. Cellular), Roger Nishi (Chairman of OPASTCO), Jonathan Foxman (P/CEO of Chinook Wireless), Joel Lubin (AT&T), and Everett Flannery (Kennebec County Sheriff's Office). See, notice. Location: Room 253, Russell Building.

10:00 AM - 12:00 NOON. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet regarding U.S. positions for a meeting of the Organization of American States Inter American Telecommunication Commission (CITEL) Permanent Consultative Committee II (Radiocommunication) which will prepare for the International Telecommunication Union World Radiocommunication Conference (WRC07). See, notice in the Federal Register, May 30, 2007, Vol. 72, No. 103, at Page 30045. Location: undisclosed.

12:15 PM. The Federal Communications Bar Association's (FCBA) Mass Media Committee will host a brown bag lunch titled "DTV Transition: 88 Weeks and Counting". The speakers will be Andrew Long (Associate Chief of the FCC's Media Bureau), Eloise Gore (Assistant Chief of the FCC's Media Bureau's Policy Division), Evan Baranoff (Attorney Advisor in the FCC's Media Bureau's Policy Division), Gordon Godfrey (FCC's Media Bureau's Engineering Division), Nazifa Sawez (FCC's Media Bureau's Video Division), and Alan Stillwell (Senior Associate Chief of the FCC's Office of Engineering and Technology). For more information contact David O'Connor at david dot oconnor at hklaw dot com or 202-828-1889 or Erin Dozier at edozier at sheppardmullin dot com or 202-772-5312. Location: Holland & Knight, lower level, 2099 Pennsylvania Ave., NW.

1:00 - 3:00 PM. The House Science Committee (HSC) will hold a hearing titled "The Globalization of R&D and Innovation". See, notice. Location: Room 2318, Rayburn Building.

2:30 PM. The Senate Commerce Committee's (SCC) Subcommittee on Interstate Commerce, Trade, and Tourism will hold a hearing titled "U.S. Trade Relations with China". See, notice. Location: Room 256, Russell Building.

2:30 PM. The Senate Homeland Security and Governmental Affairs Committee's Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia will hold a hearing titled "Assessing Telework Policies and Initiatives in the Federal Government". See, notice. Location: __.

6:00 - 8:15 PM. The Federal Communications Bar Association's (FCBA) State and Local Practice Committee will host a continuing legal education (CLE) seminar titled "State Legislative Update". The price to attend ranges from $50 to $125. See, registration form [PDF]. Registrations are due by 5:00 PM on June 8. Location: undisclosed.

Wednesday, June 13

9:00 - 10:30 AM. The Information Technology and Innovation Foundation (ITIF) will host a debate titled "Does Productivity Growth Still Benefit American Workers?" The speakers will be Steve Rose and Christian Weller. Robert Atkinson (ITIF) will moderate. RSVP to Torey Liepa at 202-449-1351 or tliepa at itif dot org. Breakfast will be served. Location: ITIF, Suite 200, 1250 Eye St., NW.

9:00 - 11:00 AM. The Progressive Policy Institute (PPI) will host an event titled "Fresh Approaches to Health Information Technology and Patient Privacy". The scheduled speakers include Sen. Sheldon Whitehouse (D-RI), Sen. Tom Carper (D-DE), Rep. Dennis Moore (D-KS), Deborah Peel (Patient's Privacy Rights Foundation), David Kendall (Director of the PPI's Health Project), and Will Marshall (President of the PPI). Location: Room 2456, Rayburn Building.

10:00 AM. The House Foreign Affairs Committee's Subcommittee on Terrorism, Nonproliferation, and Trade will hold a hearing titled "The United States-South Korea FTA: The Foreign Policy". The witnesses will be Karan Bhatia (Deputy U.S. Trade Representative) and Christopher Hill (Department of State). See, notice. Location: Room 2237, Rayburn Building.

1:30 PM. Sen. Max Baucus (D-MT), Sen. Charles Grassley (R-IA), Sen. Charles Schumer (D-NY), and Sen. Lindsey Graham (R-SC) will hold a news conference to announce the introduction of a bill to "to address undervalued currencies that harm U.S. trade and economic interests". Location: Senate Radio/TV Gallery, Room S-325, Capitol Building.

2:15 PM. There will be second news conference regarding currency legislation. Sen. Max Baucus (D-MT), Sen. Charles Grassley (R-IA), Sen. Charles Schumer (D-NY), and Sen. Lindsey Graham (R-SC) stated that "A staff-led, reporters-only background briefing on elements of the legislation will immediately follow the Senators’ press conference. The staff-led briefing will be held in Dirksen Senate Office Building G-02 (near the subway) beginning at 2:15 p.m.  Reporters may be asked to show their credentials for entry."

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its request for comments regarding Google's proposals regarding service rules for the 700 MHz band. The FCC states that "Google requests that the Commission clarify the service rules governing the 700 MHz bands and declare that the rules allow the use of ``dynamic auction mechanisms´´ such as real-time auctions and per-device registration fees. Google also requests that the Commission posit at least whether it would be in the public interest to mandate the use of such mechanisms for some, or even all, of the commercial spectrum to be auctioned in the 700 MHz bands. The document also seeks comment on Google's proposal that the unpaired 6 megahertz E Block (722-728 MHz) in the current Lower 700 MHz band plan should be designated primarily or exclusively to be used for deployment of broadband communications platforms.". This item is DA 07-2197 in WT Docket No. 06-150, WT Docket No. 06-169, PS Docket No. 06-229, and WT Docket No. 96-86. See, notice in the Federal Register, May 30, 2007, Vol. 72, No. 103, at Pages 29930-29933.

Thursday, June 14

8:30 AM - 4:00 PM. Day one of a two day hearing of the U.S.-China Economic and Security Review Commission. This hearing will focus on the consequences of China's energy consumption. See, notice in the Federal Register: May 23, 2007, Vol. 72, No. 99, at Page 29042. Location: Room 385, Russell Building, Capitol Hill.

The 10:00 AM. The Senate Judiciary Committee (SJC) may hold an executive business meeting. The agenda includes consideration of an "Authorization of Subpoenas in Connection with Investigation of Legal Basis for Warrantless Wiretap Program", consideration of S 1145 [PDF | LOC | WW], the "Patent Reform Act of 2007", and consideration of the nomination of Leslie Southwick to be a Judge of the U.S. Court of Appeals (5thCir). The SJC rarely follows its published agenda. See, notice. Location: Room 226, Dirksen Building.

10:00 AM. The Senate Commerce Committee (SCC) will hold a hearing titled "The 700 MHz Auction: Public Safety and Competition". The witnesses will be Wanda McCarley (Association of Public-Safety Communications Officials International), James Barksdale (Frontline Wireless), Philip Weiser (Silicon Flatirons Program, University of Colorado School of Law), Paul Cosgrave (New York City Department of Information Technology and Telecommunications), Dick Lynch (Verizon Wireless), Michael Small (Centennial Communications Corporation), and Amol Sarva (Txtbl). See, notice. Location: Room 253, Russell Building.

10:00 AM. The House Ways and Means Committee will hold a hearing on the Trade Adjustment Assistance program. See, notice. Location: Room 1100, Longworth Building.

2:00 - 3:00 PM. The President's National Security Telecommunications Advisory Committee (NSTAC) will meet by teleconference. See, notice in the Federal Register, December 29, 2006, Vol. 71, No. 250, at Page 78451.

Friday, June 15

9:00 - 10:30 AM. The Information Technology and Innovation Foundation (ITIF) will host a debate titled "Is the United States Falling Behind in Broadband? If so, What Should We Do About It?" The speakers will be Robert Atkinson (ITIF) and Scott Wallsten (Progress and Freedom Foundation). Breakfast will be served. Location: Lisagor Room, National Press Club, 529 14th St., NW.

9:30 AM - 4:00 PM. Day two of a two day hearing of the U.S.-China Economic and Security Review Commission. This hearing will focus on the consequences of China's energy consumption. See, notice in the Federal Register: May 23, 2007, Vol. 72, No. 99, at Page 29042. Location: Room 385, Russell Building, Capitol Hill.

9:30 AM - 4:30 PM. The Copyright Office (CO) will hold a public roundtable regarding 17 U.S.C. § 115 and "the use of the statutory license to make and distribute digital phonorecords, including for a limited period, and to make phonorecords that facilitate streaming". See, notice in the Federal Register, May 30, 2007, Vol. 72, No. 103, at Pages 30039-30042. Location: Copyright Office Hearing Room, Library of Congress, Room LM-408, 4th Floor, Madison Building, 101 Independence Ave., SE.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding its collection of data on broadband deployment. This NPRM is FCC 07-17 in WC Docket No. 07-38. See, notice in the Federal Register, May 16, 2007, Vol. 72, No. 94, at Pages 27519-27535.

Deadline to submit to the the Copyright Office (CO) written or e-mail notifications of intent to testify at the CO's hearings on July 23 through July 26 regarding the operation of, and continued necessity for, the cable and satellite statutory licenses under the Copyright Act. See, notice in the Federal Register, May 23, 2007, Vol. 72, No. 99, at Pages 28998-29000.

Monday, June 18

12:00 NOON. The Cato Institute will host a panel discussion titled "Trade Promotion Authority, R.I.P.?". The speakers will be former Rep. Cal Dooley (D-CA) and Dan Griswold (Cato). Lunch will be served. See, notice and registration page. Location: Room B-339, Rayburn Building.

2:00 - 4:00 PM. The American Enterprise Institute (AEI) will host a panel discussion titled "Is Sarbanes-Oxley Impairing Corporate Risk-Taking?". The speakers will be Kenneth Lehn, Leonce Bargeron and Chad Zutter (all from the University of Pittsburgh's Katz Graduate School of Business), Charles Calomiris (AEI), Allen Ferrell (Harvard Law School), Kate Litvak (University of Texas at Austin School of Law), and Peter Wallison (AEI). See, notice. Location: AEI.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding FCC regulation of exclusive contracts for the provision of video services to multiple dwelling units (MDUs) and other real estate developments. The FCC adopted this NPRM on March 22, 2007, and released the text [19 pages in PDF] on March 27. See, stories titled "FCC Adopts MDU Forced Access NPRM" in TLJ Daily E-Mail Alert No. 1,556, March 26, 2007, and "FCC Releases MDU NPRM" in TLJ Daily E-Mail Alert No. 1,557, March 27, 2007. See also, notice in the Federal Register, April 18, 2007, Vol. 72, No. 74, at Pages 19448-19453. This NPRM is FCC 07-33 in Docket 07-51.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its request for comments updating its record on the Center for the Study of Commercialism's (CSC) Petition for Reconsideration regarding stations that air home shopping programming and their status. See, notice in the Federal Register, May 17, 2007, Vol. 72, No. 95, at Pages 27811-27813.

Tuesday, June 19

9:00 AM - 12:30 PM. The U.S. Chamber of Commerce (USCC) will host a workshop titled "Engaging Online in a Presidential Election". This is the fourth of four workshops in a series titled "Online Strategies for Grassroots Advocacy". See, notice. Location: USCC, 1615 H St., NW.

10:00 AM - 12:00 NOON. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet regarding U.S. positions for a meeting of the Organization of American States Inter American Telecommunication Commission (CITEL) Permanent Consultative Committee II (Radiocommunication) which will prepare for the International Telecommunication Union World Radiocommunication Conference (WRC07). See, notice in the Federal Register, May 30, 2007, Vol. 72, No. 103, at Page 30045. Location: undisclosed.

TIME? The Department of Defense's (DOD) Defense Science Board Task Force on Integrating Sensor-Collected Intelligence will hold another of its closed sessions regarding intelligence, surveillance and reconnaissance systems. See, notice in the Federal Register, April 2, 2007, Vol. 72, No. 62, at Page 15659. Location: Science Applications International Corporation, 4001 N. Fairfax Drive, Arlington, VA.