Telecom Stories: July - December 1998

Appeals Court Rejects BellSouth's Challenge to § 271. (12/23/98) The U.S. Court of Appeals for the District of Columbia ruled against BellSouth's appeal of the FCC's denial of its request to provide long distance telephone service in South Carolina. The court opinion, released early on Tuesday, December 22, rejected BellSouth's argument that Section 271 of the 1996 Telecom Act is unconstitutional. See, copy of court opinion.

Advisory Panel Recommends Free Air Time for Politicians. (12/21/98)  The President's Advisory Committee on Public Interest Obligations of Digital Television Broadcasters issued a 178 page report on Friday, December 18, which made many recommendations, including one that TV broadcasters, as well as cable, satellite, radio, and other video and audio programmers, give free advertising time to politicians.

Senate Commerce Committee Announces High-Tech Agenda for Early 1999. (12/18/98) The Senate Commerce Committee announced a list of issues that it will take up in the first several months of the 106th Congress. The list is heavy with high-tech issues, including high-speed digital technologies, technological convergence, Internet filtering for schools and libraries, satellite TV reform, Telecom Act changes, FCC reform, FCC reauthorization, and FTC reauthorization.

Computer Firms and RBOCs Write FCC with High Speed Internet Access Proposals. (12/8/98)  Several leading computer companies and most of the regional Bell operating companies jointly wrote to the Federal Communications Commission on Monday, December 7, with a set of proposals for facilitating the provision of high speed Internet access via ADSL technology. See, copy of letter and attached proposals.

Disbursement of E-Rate Funds Begins. (11/25/98) The FCC's controversial schools and libraries program, or "e-rate,"  is set to begin disbursement of funds, according to statements released by the Schools and Libraries Corp. and Vice President Al Gore.

Satellite Privatization Effort Continues. (11/16/98) The satellite privatization bill, which passed the House, but not the Senate, in the 105th Congress, will be reintroduced and pushed in the next Congress, according to speakers on a panel sponsored by the Federalist Society in Washington DC on Friday, November 13.

Furchtgott-Roth Criticizes FCC's Inconsistent Application of "Public Interest" Standard to Telecom Mergers. (11/12/98) FCC Commissioner Harold Furchtgott-Roth criticized the FCC's "discriminatory" application of its "public interest" standard in big telecom company mergers during a panel discussion in Washington DC sponsored by the Federalist Society.

Former U.S. Senator Brown Named to U S West Board. (11/3/98) Hank Brown, a U.S. Senator from Colorado until 1997, has been named to the Board of Directors of U S West, the telephone company which provides local phone service to most of the western United States, except California.

FCC Rules GTE ADSL Service Subject to Its Jurisdiction. (11/2/98) The FCC announced late on Friday, October 30, that GTE's ADSL service through a dedicated connection is interstate rather than local, and hence subject to FCC jurisdiction. However, the FCC did not rule on the broader issue of whether traditional dialup calls to ISPs are local, and whether to maintain the current reciprocal compensation agreements between incumbent local exchange carriers (ILECs) and their competitors. The FCC announced in a separate statement that it plans to rule on that issue this week. See, FCC Memorandum Opinion.

Death of Anti Slamming Bill Shifts Initiative to FCC. (10/22/98) Negotiations over the anti-slamming bill failed to produce a compromise in the final days of the 105th Congress.  However, the FCC has authority under the Telecom Act of 1996 to enact and enforce regulations dealing with the problem of slamming -- the unauthorized switching of long distance phone companies.

Gore Promotes Universal Access to the GII. (10/15/98) Vice President Al Gore addressed the International Communications Union in Minneapolis, Minnesota, on Monday, October 12. He primarily addressed ways to further the development of the Internet and telecommunications, and ways to expand access for people around the world.   However, he also addressed the Year 2000 conversion problem. See, Complete Text of Gore's Speech to ITU.

Senate Committee to Hold Hearing and Markup of Satellite & Cable Bill. (10/1/98)  With Congress likely to adjourn within a couple of weeks, the Senate Commerce Committee is holding hearing and markup session today as part of a last minute effort to pass legislation to reform the cable and satellite TV industry. The Committee also has a full plate of other tech bills on its meeting agenda.

US West to Assess Access Charges for Internet Telephony. (9/15/98) On Friday, September 11, US West became the second Regional Bell Operating Company (RBOC) to announce that it would attempt to collect access charges on packet switched, Internet protocol, telephony. On September 2 BellSouth made a similar announcement.  Since "information services" are not regulated by the FCC, and are exempt from access charges, IP telephony providers are likely to challenge the moves in court and/or before the FCC.

FCC Finally Approves MCI WorldCom Merger. (9/15/98) The Federal Communications Commission approved the merger of MCI and WorldCom on Monday, September 14.

ICG May Sue to Stop BellSouth from Collecting Access Charges on Internet Telephony. (9/10/98) ICG Communications Inc, a provider of phone-to-phone Internet communications, may bring suit to enjoin BellSouth from trying to collect access charges on Internet telephony.  BellSouth informed IP telephony customers on September 2 that "BellSouth will no longer provide local exchange service to companies providing long distance service via the Internet or IP technology. Companies providing this type of service should use one of BellSouth's access service offerings."

FCC Moves Closer to Regulating the Internet. (9/8/98) The Federal Communications Commission released a lengthy report on Thursday, September 4, which suggests that the FCC ought to regulate Internet access provided by cable operators such as @Home, Road Runner, Cablevision, and MediaOne. This is the second major policy statement by the FCC this year that seeks to expand its regulatory reach from telecommunications services into computer and Internet services.

Fifth Circuit Reverses Judge Kendall in SBC v. FCC. (9/5/98) A divided U.S. Court of Appeals late yesterday reversed the decision of U.S. District Court Judge Joe Kendall that the sections of the 1996 Telecommunications Act that prevent regional Bells from providing in region long distance service are an unconstitutional Bill of Attainder. See, copy of Appeals Court Opinion.

National Taxpayers Union Seeks End to Gore Tax. (8/19/98) The National Taxpayers Union yesterday restated its opposition to the "Gore Tax," the FCC's schools and libraries program. It also launched a new website committed to ending the Gore Tax.

E-Rate Divide Follows Partisan Lines. (8/10/98) The political battle over the future of the e-rate is classic partisan contest which pits Republicans and fiscal conservatives against Democrats and social liberals. Democrats are digging in to defend the current FCC run program. Republicans are coalescing around a proposal by Sen. Burns and Rep. Tauzin to limit the e-rate to five years, shift administration from the FCC to the NTIA, and distribute money to the states as block grants.

Subcommittee OKs Anti Slamming and Spamming Bill. (8/7/98) The House Telecommunications Subcommittee approved a bill to provide consumers and phone companies further protections against unauthorized switching of long distance carriers, and to limit unsolicited commercial e-mail.

Bennett Committee Holds Hearing on Telecom Y2K. (8/3/98) The Senate Special Committee on Year 2000 Technology Problem, chaired by Sen. Bob Bennett, held a hearing in Washington DC on Friday, July 31, on compliance in the telecommunications industry.

Riley Attacks Burns-Tauzin Proposal to Reform E-Rate. (7/30/98) Secretary of Education William Riley ratcheted up the partisan rhetoric in the debate over how the e-rate should be administered in a speech on Wednesday. He accused Members of Congress of "trying to pull the plug on the program." He also argued that phone companies cannot bill customers for the universal service charges assessed to them to pay for the e-rate, and that the federal government should also provide schools with "hardware, the software, the wiring, and the teacher training."

AT&T Picks Cicconi to Head Government Affairs. (7/28/98) AT&T has picked James Cicconi, of the Washington mega law firm of Akin Gump, to be Senior Vice President for Government Affairs and Federal Policy. Cicconi also served as a senior White House aide in the Reagan and Bush administrations.

Comparison of Schools and Libraries Programs. (7/27/98) The e-rate bills filed last Thursday by Sen. Burns, Rep. Tauzin, Rep. Weller, and Rep. Hulshof would continue the existing FCC run program for subsidizing schools' and libraries' efforts to connect to the Internet. However, the bills would make some major changes in the way the program is run.

Tauzin and Burns Introduce E-Rate Reform Bill. (7/24/98) Sen. Conrad Burns and Rep. Billy Tauzin introduced a bill on Thursday that would reform the controversy plagued schools and libraries program. The proposal would fund the program out of the existing excise tax on phones, terminate the FCC's Schools and Libraries Corp., transfer authority to the NTIA, and hand out funds to the states in the form of block grants.

Senate Holds Hearing on Schools and Libraries Corp. (7/20/98) The Senate Commerce Committee held a hearing into waste, fraud, and mismanagement, and other problems, at the Schools and Libraries Corporation (SLC) on Thursday, July 16. The SLC administers a program for funding subsidies to schools and libraries for computer networking, Internet access, and phone service. The Committee heard testimony from SLC President Ira Fishman, and GAO representative Judy Joseph.

Justice Clears WorldCom MCI Merger. (7/16/98) The U.S. Department of Justice announced that it has approved the proposed merger between WorldCom and MCI.  The announcement accompanies MCI's announcement that it has reached a deal to sell all of its Internet business to Cable and Wireless.

Kennard Asks NAACP to Support E-Rate. (7/15/98) Federal Communications Commission Chairman William Kennard asked the NAACP to adopt a resolution in support of the "e-rate" during a speech at the NAACP's annual convention in Atlanta, Georgia, on July 13.

Judge Sets Trial Date in WorldCom MCI Merger Suit. (7/11/98) A federal judge decided Friday that GTE's antitrust suit to enjoin the merger of WorldCom and MCI will go to trial on May 10, 1999. Discovery will proceed according to standard Federal Rules of Civil Procedure, and will close on March 31, 1999. GTE had sought a more accelerated discovery process and disposition of the case.

European Commission Clears WorldCom MCI Merger. (7/9/98) The European Commission announced Wednesday that it has given conditional clearance to the merger between WorldCom and MCI, subject to a divestiture of MCI's Internet business activities.

Senate Holds Hearing on Convergence and Mergers. (7/8/98) The Senate Antitrust Subcommittee held a hearing Tuesday morning on technology convergence and corporate mergers in the entertainment and information industries. Executives from Time Warner, Disney, AT&T, and Sun Microsystems testified. AT&T CEO Michael Armstrong argued that its merger with TCI will increase phone competition.

Gingrich Criticizes FCC Management of E-Rate. (7/1/98) House Speaker Newt Gingrich condemned the way the schools and libraries program is being subsidized in a trip to Silicon Valley on Tuesday. Gingrich said that it is wrong to allow a bureaucracy to raise a tax, and bad policy to allow a Washington bureaucracy to manage technical modernization.