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November 12, 2008, Alert No. 1,856.
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FCC Sets Comment Deadlines for Intercarrier Compensation and Universal Service FNPRM

11/12. The Federal Communications Commission (FCC) published a notice in the Federal Register that sets comment deadlines for the FNPRM portion of its November 5, 2008, Order on Remand regarding universal service, intercarrier compensation, IP enabled services, and other topics.

The deadline for initial comments is November 26, 2008. The deadline for reply comments is December 3, 2008. The FCC may hold a meeting on December 18, 2008. There exists a hypothetical possibility that the FCC will adopt a report and order on December 18 that would modernize its intercarrier compensation and universal service regimes, and comply with the mandamus of the U.S. Court of Appeals (DCCir).

The FCC adopted and released its Order on Remand and Report and Order and Further Notice of Proposed Rulemaking [430 pages in PDF] on November 5, 2008. See also, Federal Register, November 12, 2008, Vol. 73, No. 219, at Pages 66821-66830.

FCC Chairman Kevin Martin offered this explanation in his statement associated with this item: "Today we tell the U.S. Court of Appeals for the D.C. Circuit and the Federal-State Joint Board on Universal Service that, after years of deliberation, we are still unready to move forward with comprehensive reform of intercarrier compensation and universal service. Instead, we issue another open-ended Further Notice of Proposed Rulemaking on a variety of approaches for comprehensive reform, and my colleagues promise to act on it by December 18."

The other four Commissioners wrote in their statement that this "responds directly to the mandamus from the D.C. Circuit Court of Appeals regarding Core Communications, Inc. The item sets forth the Commission’s legal justification for the rules it adopted in 2001 governing intercarrier compensation for telecommunications traffic bound for Internet service providers. It also preserves the ability to move towards a more unified intercarrier compensation regime."

The four Commissioners also wrote that the FNPRM seeks "comment on specific proposals to reform the intercarrier compensation and universal service systems. While we do not pre-judge any of the proposals set forth therein, we do believe that there is a tentative but growing measure of consensus on a number of issues, including: moving intrastate access rates to interstate access levels over a reasonable period of time; not unduly burdening consumers with increases in their rates untethered to reductions in access charges; addressing phantom traffic and traffic stimulation; implementing an alternative cost recovery mechanism in certain circumstances; eliminating the identical support rule and moving over time towards support based on a company’s own costs; emphasizing the importance of broadband to the future of universal service; ..."

This item is FCC 08-262 in WC Docket No. 05-337, CC Docket No. 96-45, and WC Docket No. 03-109, WC Docket No. 06-122, and CC Docket No. 99-200, CC Docket No. 96-98, and CC Docket No. 01-92, CC Docket No. 99-68, and WC Docket No. 04-36.

NCTA Complains Regarding FCC Letters of Inquiry

11/12. The Federal Communications Commission (FCC) sent substantially identical letters on October 30, 2008, to cable companies requesting detailed information regarding digital migration by cable companies.

The FCC sent letters to Bend Cable Communications, Bright House Networks, Cablevision Systems, Charter Communications, Comcast Corporation, Cox Communications, GCI, Harron Entertainment Company, Midcontinent Communications, Suddenlink Communications, Time Warner Cable, RCN Corporation, and Verizon Communications.

The FCC titled these letters "Letters of Inquiry" or LOIs. It requested responses within 14 days.

Kyle McSlarrow, head of the National Cable & Telecommunications Association (NCTA), sent a letter to the FCC complaining about these letters.

He wrote that "we have serious concerns concerning the method selected by the Commission to gather information on this subject, in particular the issuance of LOIs to 13 companies to obtain industry-wide information. The appropriate vehicle for that is a Notice of Inquiry or the Commission's annual Video Competition proceeding."

He added that "the manner in which LOIs are being employed in this case constitutes an abuse of the Commission’s processes and violates the Paperwork Reduction Act."

He also complained that "the unprecedented disclosure of the LOIs to the press and related improprieties call into question the impartiality of the inquiry".

In addition, he said that this is "part of a pattern of recent Enforcement Bureau conduct launching wide-ranging inquiries and imposing unreasonable information requests (and response deadlines) on cable companies via LOIs rather than through more appropriate means" (Parentheses in original.)

A notice of inquiry would require a vote by the full Commission. LOIs can be sent at the direction of the Chairman. The current Chairman, Kevin Martin, has in recent years consistently demonstrated slight regard for the cable industry.

More FCC News

11/13. The Federal Communications Commission (FCC) released the text [20 pages in PDF] its Memorandum Opinion and Order (MOO) in its proceeding titled "In the Matter of Union Telephone Company Cellco Partnership d/b/a Verizon Wireless Applications for 700 MHz Band Licenses, Auction No. 73". The FCC granted two pending Auction 73 applications, subject to the divestiture of spectrum in one market by Verizon Wireless. The FCC adopted this item on November 4, 2008. It is FCC 08-257.

11/10. The Federal Communications Commission (FCC) issued a Public Notice [PDF] regarding DTV periodic reporting and Form 317 [PDF]. It announces that "the revisions to Section 73.624(g) adopted in the Third DTV Periodic Review Report and Order and the changes to FCC Form 317 are now effective". This item adds that "All DTV licensees and permittees must file FCC Form 317 no later than December 1, 2008." This item is DA 08-2476.

11/7. The Federal Communications Commission (FCC) released the text [57 pages in PDF] of its Declaratory Ruling, Order, and Notice of Proposed Rulemaking in its proceeding titled "In the Matter of Closed Captioning of Video Programming Closed Captioning Requirements for Digital Television Receivers". It adopted this item on November 3, 2008. It is FCC 08-255 in CG Docket No. 05-231 and ET Docket No. 99-254. Initial comments will be due 30 days after publication of a notice in the Federal Register. Reply comments will be due within 45 days of such publication. As of the November 14, 2008, issue of the Federal Register, this notice had not yet been published.

11/7. The Federal Communications Commission (FCC) released the text [20 pages in PDF] of its Report and Order in its proceeding titled "In the Matter of Digital Television Distributed Transmission System Technologies". It adopted this item on November 3, 2008. This item is FCC 08-256 in MB Docket No. 05-312.

People and Appointments

11/14. John Doll was named acting Deputy Under Secretary of Commerce and Deputy Director of the U.S. Patent and Trademark Office (USPTO). He is a long time USPTO employee who is the Commissioner for Patents. He replaces Margaret Peterlin, a departing political appointee. While Doll is the acting in this capacity, Margaret Focarino, the Deputy Commissioner for Patent Operations, will assume the responsibilities of the Commissioner for Patents. See, USPTO release.

11/14. President Bush announced his intent to nominate Neil Barofsky to be Special Inspector General for the Troubled Asset Relief Program (TARP) at the Department of the Treasury. He currently an Assistant U.S. Attorney for the Southern District of New York and Chief of the Mortgage Fraud Group. See, White House new office release.

11/13. President Bush announced his intent to designate Deborah Garza to be the acting Assistant Attorney General in charge of the Department of Justice's (DOJ) Antitrust Division. See, White House new office release. Garza is a political appointee, and hence, will not likely hold this position for long.

11/12. The Federal Communications Commission's (FCC) Wireline Competition Bureau (WCB) issued a Public Notice [3 pages in PDF] requesting nominations for six soon to expire positions on the Board of Directors of the Universal Service Administrative Company (USAC). The terms of six members expire on December 31, 2008: Brian Talbott (representative for schools eligible for e-rate subsidies), Peter Kragel (representative for rural health care providers), James Jackson (representative for interexchange carriers with annual operating revenues of $3 Billion or less), Joseph Gillan (representative for competitive local exchange carriers), Joycelyn Tate (representative for low-income consumers), and Jason Williams (representative for incumbent local exchange carriers other than Bell Operating Companies with annual reporting revenues of $40 Million or less). Nominations are due by December 1, 2008. This Public Notice is DA 08-2487 in CC Docket Nos. 96-45 and 97-21.

More News

11/13. The Office of the U.S. Trade Representative (OUSTR) announced in a release that the U.S. and the People's Republic of China (PRC) entered into a memorandum of understanding under which the PRC "has agreed to eliminate discriminatory restrictions on how U.S. and other foreign suppliers of financial information services do business in China". The U.S. filed a complaint (nominally a request for consultations) with the World Trade Organization (WTO) on March 3, 2008. The European Union and Canada also filed complaints. See, the WTO's web page for the U.S. action. It is WTO No. DS 373. See also, notice in the Federal Register, March 24, 2008, Vol. 73, No. 57, at Pages 15544-15545.

11/12. The U.S. Patent and Trademark Office's (USPTO) published a notice in the Federal Register that announces, describes, recites, and sets the effective date (January 12, 2009) for, its rules of practice amendments that adjust the transmittal and search fees for international applications filed under the Patent Cooperation Treaty (PCT). See, Federal Register, November 12, 2008, Vol. 73, No. 219, at Pages 66754-66759.

11/12. Federal Communications Commission (FCC) Commissioner Deborah Tate gave a speech [15 pages in PDF] at a meeting of the International Telecommunications Union (ITU) in Geneva, Switzerland, regarding online threats to children. She said that "First, I believe we need an internationally-recognized forum for digital research, online behavioral practices, medical and psychological reports, and experimental studies. Second, we must continue to disseminate this information, to discuss and understand the technology, the threat, and the tools available to protect children around the world. Coordination among nations is vitally important because the internet connects and touches us all -- and all of our children. Third, through this sharing of research and expertise, we need to develop a clearinghouse of best practices, concepts that other nations can replicate." See also, FCC release.

11/12. The Supreme Court issued its opinion [PDF] in Winter v. Natural Resources Defense Council, a case regarding the U.S. Navy's use of sonar in the waters off of the coast of southern California. Chief Justice John Roberts, writing for the Supreme Court, wrote that "The Court of Appeals upheld a preliminary injunction imposing restrictions on the Navy's sonar training, even though that court acknowledged that ``the record contains no evidence that marine mammals have been harmed´´ by the Navy's exercises. See, February 29, 2008, opinion [82 pages in PDF] of the U.S. Court of Appeals (9thCir). Chief Justice Roberts concluded, "The Court of Appeals was wrong, and its decision is reversed." This case is Donald Winter, et al. v. Natural Resources Defense Council, Inc., et al., Supreme Court of the U.S., Sup. Ct. No. 07-1239, a petition for writ of certiorari to the U.S. Court of Appeals for the 9th Circuit, App. Ct. No. 08-55054. The Court of Appeals heard an appeal from the U.S. District Court for the Central District of California, D.C. No. CV-07-00335-FMC. See also, Supreme Court docket.

11/12. The U.S. Court of Appeals (9thCir) issued its opinion [30 pages in PDF] in Halicki Films v. Sanderson Sales and Marketing, a copyright case involving a motion picture. The Court of Appeals vacated the District Court's summary judgment dismissing Plaintiffs' copyright, common law trademark infringement, unfair competition, and declaratory relief claims and remand the case for further proceedings. This case is Halicki Films, LLC, et al. v. Sanderson Sales and Marketing, et al., U.S. Court of Appeals for the 9th Circuit, App. Ct. Nos. Nos. 06-55806 and 06-55807, an appeal from the U.S. District Court for the Central District of California, D.C. No. CV-04-08813-SJO.

11/10. Circuit City filed a Chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for the Eastern District of Virginia. See, release.

In This Issue

This issue contains the following items:
 • FCC Sets Comment Deadlines for Intercarrier Compensation and Universal Service FNPRM
 • NCTA Complains Regarding FCC Letters of Inquiry
 • More FCC News
 • People and Appointments, including interim appointments at the USPTO and Antitrust Division

Washington Tech Calendar
New items are highlighted in red.
Friday, November 14

The House will not meet.

The Senate will meet.

9:00 AM - 4:00 PM. The Federal Communications Commission's (FCC) Consumer Advisory Committee will meet. See, notice in the Federal Register, October 29, 2008, Vol. 73, No. 210, at Page 64333-64334. Location: FCC, Commission Meeting Room (Room TW-C305), 445 12th St., SW.

Deadline to submit comments to the Copyright Royalty Judges in response to their request for comments regarding a motion of Phase I claimants for partial distribution in connection with the 2006 cable royalty funds. See, notice in the Federal Register, October 15, 2008, Vol. 73, No. 200, at Page 61172.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to the Notice of Proposed Rulemaking (NPRM) portion of its Memorandum Opinion and Order (MO&O) and NPRM regarding collecting and reporting of carrier service quality, customer satisfaction, and infrastructure and operating data. The FCC adopted and released this MO&O and NPRM [57 pages in PDF] on September 6, 2008. It is FCC 08-203 in WC Docket No. 08-190. See, notice in the Federal Register, October 15, 2008, Vol. 73, No. 200, at Pages 60997-61006. See also, story titled "FCC Grants Carriers Forbearance From ARMIS Reporting Rules" in TLJ Daily E-Mail Alert No. 1,822, September 8, 2008.

Monday, November 17

The House will not meet.

8:00 AM - 5:30 PM. Day one of a five day closed meeting of the National Institute of Standards and Technology's (NIST) Judges Panel of the Malcolm Baldrige National Quality Award. The panel will conduct final judging of the 2008 applicants. See, notice in the Federal Register: October 28, 2008, Vol. 73, No. 209, at Page 63946. Location: NIST, Administration Building, Lecture Room E, Gaithersburg, MD.

9:00 - 10:30 AM. The Information Technology and Innovation Foundation (ITIF) will host an event titled "ITIF Forum: The Impact of IT on Energy". See, notice and registration page. Location: Room 121, Cannon Building, Capitol Hill.

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in Verizon v. FCC, App. Ct. No. 08-1012, petition for review of the Federal Communications Commission's (FCC) December 5, 2007, order denying Verizon's six petitions to forbear, pursuant to 47 U.S.C. § 160, from applying its rules regarding unbundling, and leasing to competitors, of certain network elements in six markets -- New York, Philadelphia, Boston, Pittsburg, Providence, and Virginia Beach. At issue is application of the FCC's rules implementing the loop and transport provisions of 47 U.S.C. § 251(c)(3). See, redacted copy of FCC brief [56 pages in PDF]. Judges Sentelle, Griffith and Edwards will preside. Location: 333 Constitution Ave., NW.

10:30 AM - 4:30 PM. Day one of a three day meeting of the Architectural and Transportation Barriers Compliance Board. See, notice in the Federal Register, October 30, 2008, Vol. 73, No. 211, at Pages 64595-64596. Location: The Westin Arlington Gateway Hotel, 801 North Glebe Road, Arlington, VA.

12:15 - 1:30 PM. The Federal Communications Bar Association's (FCBA) Cable and Mass Media Practice Committees will host a brown bag lunch titled "Retransmission Consent Negotiations -- A Good Faith Discussion of the Issues". The speakers will be Kevin Latek (Dow Lohnes), Seth Davidson (Fleischman & Harding), and Linda Kinney (EchoStar Satellite). See, notice and registration page. Location: Drinker Biddle & Reath, 1500 K St., NW.

Deadline to submit comments to the Department of Commerce's (DOC) Bureau of Industry and Security (BIS) regarding its proposed rules changes regarding inter-company transfers (ICTs). See, notice Federal Register, October 3, 2008, Vol. 73, No. 193, at Pages 57554-57564.

Tuesday, November 18

8:00 AM. The BroadbandCensus dot com [http colon slash slash broadbandcensus dot com] will host an breakfast titled "Should Government Funding Be Part of a National Broadband Plan?" The speakers will be Stan Fendley (Corning), Kyle McSlarrow (NCTA), and John Windhausen (Telepoly Consulting), For more information, contact Drew Clark at drew at broadbandcensus dot com or 202-580-8196. Location: Old Ebbitt Grill, 675 15th St., NW.

8:00 AM - 5:30 PM. Day two of a five day closed meeting of the National Institute of Standards and Technology's (NIST) Judges Panel of the Malcolm Baldrige National Quality Award. The panel will conduct final judging of the 2008 applicants. See, notice in the Federal Register: October 28, 2008, Vol. 73, No. 209, at Page 63946. Location: NIST, Administration Building, Lecture Room E, Gaithersburg, MD.

9:00 AM - 5:00 PM. Day two of a three day meeting of the Architectural and Transportation Barriers Compliance Board. The morning session is closed to the public. Its agenda includes "Reports and discussion on ... information and communications technologies". See, notice in the Federal Register, October 30, 2008, Vol. 73, No. 211, at Pages 64595-64596. Location: The Westin Arlington Gateway Hotel, 801 North Glebe Road, Arlington, VA.

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in Charles Crawford v. FCC, App. Ct. No. 08-1059, a petition for review involving procedure followed by the Federal Communications Commission (FCC) in amending its Table of Allotments for FM radio stations. See, FCC's brief [53 pages in PDF]. Judges Henderson, Rogers and Edwards will preside. Location: Courtroom 11, 333 Constitution Ave., NW.

11:00 AM - 12:00 NOON. The Information Technology and Innovation Foundation (ITIF) will hold an event to announce and release its report titled "2008 State New Economy Index". The speakers will be Robert Atkinson (ITIF) and Robert Litan (Kaufman Foundation). Location?

1:00 - 2:30 PM. Eric Schmidt, Chairman of both Google and the New America Foundation (NAF), will speak at a NAF event titled "Technology, Economic Growth and Open Government". See, notice and registration page. For more information, contact Liz Wu at 202-986-2700 x 315 or wu at newamerica dot net. Location: Amphitheatre, Ronald Reagan Building, 1300 Pennsylvania Ave, NW.

6:00 PM. The Federal Communications Bar Association (FCBA) will host an event titled "22nd Annual Chairman's Dinner". The reception will begin at 6:00 PM. Dinner will begin at 7:30 PM. See, registration form [PDF]. Prices vary. Location: Washington Hilton Hotel, 1919 Connecticut Ave., NW.

Wednesday, November 19

The House will meet at 1:00 PM for legislative business.

8:00 AM - 5:30 PM. Day three of a five day closed meeting of the National Institute of Standards and Technology's (NIST) Judges Panel of the Malcolm Baldrige National Quality Award. The panel will conduct final judging of the 2008 applicants. See, notice in the Federal Register: October 28, 2008, Vol. 73, No. 209, at Page 63946. Location: NIST, Administration Building, Lecture Room E, Gaithersburg, MD.

9:30 AM - 3:00 PM. Day three of a three day meeting of the Architectural and Transportation Barriers Compliance Board. The 10:30 AM session is closed to the public. Its agenda includes "Reports and discussion on ... information and communications technologies". See, notice in the Federal Register, October 30, 2008, Vol. 73, No. 211, at Pages 64595-64596. Location: The Westin Arlington Gateway Hotel, 801 North Glebe Road, Arlington, VA.

12:00 NOON - 2:00 PM. The DC Bar Association will host a program titled "Legal Developments in the Telecom, Media and Technology Sectors". The speakers will be Susan Fox (Disney), Marc Martin (K&L Gates), Joseph Bogdan (World Wrestling Entertainment), and Ross Vincenti (Sprint Nextel). The price to attend ranges from $10 to $35. For more information, contact 202-626-3463. See, notice. Location: DC Bar Conference Center, B-1 Level, 1250 H St., NW.

Thursday, November 20

8:30 - 10:00 AM. The Information Technology and Innovation Foundation (ITIF) will host an event titled "ITIF Breakfast Forum: The Netherlands’ National Pay-per-Use Road-Pricing Initiative". The speaker will be Al Joris (General Director of The Netherlands’ Centre for Transport and Navigation in the Ministry of Transport). This system will employ satellite tracking technology and on board mileage data systems. See, notice. Location: ITIF, Suite 200, 1250 Eye St., NW.

8:30 AM - 5:30 PM. The National Science Foundation's (NSF) Advisory Committee for Social, Behavioral, and Economic Sciences will meet. The agenda includes "CyberInfrastructure, Cyber-enabled Discovery and Innovation". See, notice in the Federal Register, November 3, 2008, Vol. 73, No. 213, at Page 65414. Location: NSF, 4201 Wilson Boulevard, Stafford I, Third Floor, Room 375, Arlington, VA.

9:00 AM - 1:00 PM. The Department of Homeland Security's (DHS) U.S. Customs and Border Protection's (CBP) Advisory Committee on Commercial Operations of Customs and Border Protection and Related Homeland Security Functions  will meet. The agenda includes "Intellectual Property Rights Enforcement". See, notice in the Federal Register, November 5, 2008, Vol. 73, No. 215, at Page 65871. Location: Rotunda Ballroom, Ronald Reagan Building, 1300 Pennsylvania Ave., NW.

9:00 AM - 5:30 PM. Day four of a five day closed meeting of the National Institute of Standards and Technology's (NIST) Judges Panel of the Malcolm Baldrige National Quality Award. The panel will conduct final judging of the 2008 applicants. See, notice in the Federal Register: October 28, 2008, Vol. 73, No. 209, at Page 63946. Location: NIST, Administration Building, Lecture Room E, Gaithersburg, MD.

1:00 PM. The Department of Health and Human Services' (DHHS) American Health Information Community's (AHIC) Confidentiality, Privacy, & Security Workgroup may meet. AHIC meetings are often noticed, but cancelled. Location: Switzer Building, 330 C St., SW.

5:30 - 7:30 PM. The DC Bar Association will host a closed event titled "Espionage and Family Law: The Use and Abuse of Electronic Surveillance". The speakers will be Eric Wenger (Department of Justice, Criminal Division), Guilherme Roschke (American Bar Association), and Sharon Nelson (Sensei). The price to attend ranges from $20 to $55. For more information, contact 202-626-3463. See, notice. Location: DC Bar Conference Center, B-1 Level, 1250 H St., NW.

Friday, November 21

8:00 AM - 5:30 PM. Day five of a five day closed meeting of the National Institute of Standards and Technology's (NIST) Judges Panel of the Malcolm Baldrige National Quality Award. The panel will conduct final judging of the 2008 applicants. See, notice in the Federal Register: October 28, 2008, Vol. 73, No. 209, at Page 63946. Location: NIST, Administration Building, Lecture Room E, Gaithersburg, MD.

8:30 - 11:45 PM. Day two of a two day meeting of the National Science Foundation's (NSF) Advisory Committee for Social, Behavioral, and Economic Sciences. See, notice in the Federal Register, November 3, 2008, Vol. 73, No. 213, at Page 65414. Location: NSF, 4201 Wilson Boulevard, Stafford I, Third Floor, Room 375, Arlington, VA.

9:00 - 11:00 AM. The Information Technology and Innovation Foundation (ITIF) will host a debate titled "Are Broadband Markets Competitive Enough?" The speakers will be Jeff Eisenach (Chairman of Empiris), Ev Ehrlich (President of ESC Company), and John Windhausen (President of Telepoly). Eisenach and Ehrlich will argue that the broadband market is competitive, and will present two new papers titled "The Reality of Competition in the Broadband Market" and "U.S. Broadband Policies: A Market-Oriented Success Story." Windhausen will argue that the broadband market is not fully competitive. Robert Atkinson (head of the ITIF) will moderate. See, notice and registration page. Location: ITIF, Suite 200, 1250 Eye St., NW.

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