
THE STATEWIDE BUZZER
VOLUME 17, NUMBER 3 AUGUST 22, 2000
| FCC-STATES TO HOST NATIONAL DATABASE OF BROADBAND DEPLOYMENT |
The Federal Communications
Commission (FCC) and State regulators announced they are developing a interactive web to
share news and information about their broadband deployment projects. Currently, regulators are asking interested parties to complete a web-based survey to gather information for a searchable database of broadband deployment projects and efforts that communities across the nation are undertaking. The web site, according to the NARUC Bulletin, will assist in the development of local "best practices" so that communities can build on the lessons learned by others. The survey may be accessed at: www.nrri.ohio-state.edu/broadbandsurvey.php. The FCC and State regulators say they expect many local communities and municipalities, private industry, educational institutions and others to share their stories on the website. The information gathered in the surveys will be at www.nrri.ohio-state.edu/broadbandquery.php.
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| QWEST TO CUT UP TO 4,000 JOBS |
Qwest Communications say they may
cut up to 4,000 jobs by the end of the year following their merger with US West
Communications. The layoffs, representing about 4 percent of the workforce, will occur as
executives determine how many people it will take to run the new company, Qwest chairman
Joe Nacchio said. The companys goal, according to the Associated Press, will be a revenue-to-employee ratio of about $350,000 per person by the end of 2001. Before the merger, US Wests revenue-to-employee ratio was $225,000 per person, while Qwests was $490,000. When the $85 billion merger was completed a month ago, US West had 65,000 employees while Qwest had 7,000. Qwest serves customers in 14 states: Colorado, Wyoming, Washington, Oregon, Idaho, Montana, Utah, New Mexico, Arizona, Nebraska, North and South Dakota, Iowa and Minnesota.
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| SRT ANNOUNCES RESTRUCTURING |
Warren Hight, chief executive
officer and general manager of Souris River Telecommunications, recently announced a
restructuring of the company into three divisions--financial, operational and technical. Steve Lysne was named chief financial officer. Mr. Lysne will oversee accounting, CABS, purchasing, billing and financial functions of the company. John Reiser was named chief operating officer. He will supervise customer service, the retail store, human resources, public relations, building and grounds and general administrative functions. Lynn Nelson will be the chief technical officer. Mr. Nelson will supervise the service center, technical services, network operations, network engineering and planning, information technology, product coordination and business sales.
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| FCC RELEASES WIRELESS STUDY |
The Federal Communications
Commission (FCC) issued its annual report on the state of competition in the commercial
mobile radio service (CMRS) industry earlier this month and said that wireless use has
increased dramatically. A national wireless association say the figures are even more
impressive than official estimates. The FCC announced the total number of subscribers to mobile telephony services in the United States jumped from 69.2 million to 86 million during 1999, for a 32 percent increase. It is estimated those wireless carriers generated over $40 billion in revenues at the same time as consumer prices declined due to increased competition, according to BMJ&D Telecom Update. According to the FCCs study, at the end of 1999, 88 percent of the nations population had access to three or more competing mobile phone carriers. Nearly 70 percent could choose from five or more carriers. Commissioner Susan Ness questioned whether wireless service deployment in rural areas was falling behind non-rural areas and asked agency staff to examine whether current partitioning and disaggregation rules should be adjusted and whether geographic boundaries for future spectrum actions should be smaller. Rural telcos complain that large carriers have often been unwilling to enter partitioning deals with smaller carriers, which the FCC has promoted as a way to ensure service to rural areas. The Cellular Telecommunications Industry Association and others said the FCCs report was out of date and that the agency underestimated the correct figures. A week before the FCC announced the 1999 subscriber total of 86 million, CTIA observed the passing of the 100 million milestone. The wireless association said the wireless industry grows by 67,082 subscribers a day or one new subscriber every 1.3 seconds. The industry reached the 100 million mark 17 years after cellular service first became available in 1983, compared to an estimated 91 years before the wireline telephone industry reached 100 million homes.
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| GOVERNOR ANNOUNCES STATEWIDE LEADERSHIP CONFERENCE |
North Dakota Governor Edward
Schafer has asked the Association to join him in promoting the second statewide leadership
conference. "Prescription for Community Leadership: Life Skills for Every
Community," which will be held September 21 in Bismarck. The conference is part of a series of statewide Leadership North Dakota events sponsored by businesses and community organizations throughout the State since 1998. Leadership North Dakota is a partnership between the Governors Office, the North Dakota Rural Development Council and North Dakota Leadership System consortium. The goal is to help communities identify, train and involve new leaders to help North Dakota thrive in the 21st century. The conference will feature a motivational speaker and concurrent educational workshops on nine leadership related topics. Items include involving youth, group dynamics, mentoring, marketing your communitys message, managing negativity and action-oriented strategic planning. A new networking luncheon has been added to facilitate informal group discussions where participants can share ideas and concerns. The conference runs from 8 a.m. to 3:15 p.m., Thursday, September 21, at the Bismarck Civic Center Exhibition Hall. The cost is $10, and includes a box lunch.
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| FCC SAYS COMPETITORS DO NOT HAVE TO OFFER SUPPORTED SERVICES TO BE DECLARED ETC |
The Association has been notified
by the Blooston, Mordkofsky, Jackson and Dickens law firm in Washington, D.C. that the
Federal Communications Commission (FCC) issued a "Declaratory Ruling" on August
10, 2000 finding that competitive carriers desiring support from the Federal Universal
Service Fund (USF) do not need to be engaged in providing supported services when they
apply to State regulators for Eligible Telecommunications Carrier (ETC) status. The FCC
ruled that such carriers may obtain ETC status even before they commence operations. The law firm said that "Despite the FCCs assertions that the ruling is merely advisory, and is not intended to determine the results of any particular State proceeding, it is clear the Declaratory Ruling addresses the recent decision by the South Dakota Public Utility Commission denying ETC status to Western Wireless. The decision signals the FCCs intention to preempt State actions that it finds are a barrier to competition and contrary to the Telecommunications Act of 1996." The Association believes the North Dakota Public Service Commissions decision on Western Wireless petition to become an ETC can be distinguished from the South Dakota decision, perhaps only temporarily, because the PSC said it would not be in the "public interest" for the cellular company to receive USF funds in rural areas of North Dakota. The FCC makes clear that its opinion only affects a carriers "eligibility to receive Federal USF support, and will not entitle a new market entrant to "receive" support until it actually provides the supported services." Once granted ETC status, the FCC states that such a carrier must be allowed "the same reasonable opportunity" to provide service to requesting customers as the incumbent local exchange carrier. If a carrier fails to provide designated services that receive USF support after such a "reasonable opportunity," the State regulators may then revoke ETC status.
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| RRRC COMMITTEE TO MEETING IN SEPTEMBER NORTHWEST TESTING |
State Representative Mick Grosz has
called a meeting of the Regulatory Reform Review Commission for Wednesday, September 13,
2000 at the State Capitol to take testimony and consider recommending a State Universal
Service Fund bill for the upcoming legislative session. On a related matter, the Association will be hosting two meetings prior to the Regulatory Reform Review Commission action on September 13 for members of the North Dakota Association of Telephone Cooperatives to review existing State USF funds from around the nation and make recommendations to the State Legislature. Members of the RRRC include: State Representatives Mick Grosz and Eliot Glassheim; Senators Vern Thompson and Rich Wardner; and, Public Service Commissioner Bruce Hagen.
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| NORTHWEST TESTING ADSL "SUPERLINK" |
Northwest Communications
Cooperative in Ray announced they are currently testing ADSL (asynchronous digital
subscriber line) technology in an effort to bring high-speed internet to their members. ADSL will allow customers to access information at speeds of 2.5 to 15 times faster than the standard 56k dial-up computer modem. With the new technology, the service can be obtained through a customers standard telephone line if the location is within 15,000 feet of a telephone exchanges central office and a consumer will be able to use the telephone line while being "on-line" with the computer. Northwest anticipates being able to offer the service to the public in the next month.
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| U.S. SENATE FULLY FUNDS RUS APPROPRIATION |
Late last month the U.S. Senate
fully funded Rural Utilities Service $670 million telephone loan program when they passed
the FY 2001 Agricultural Appropriations bill. The new fiscal year begins on October 1,
2000. Several differences remain, however, between the House and Senate version including a $7.5 million disparity for distance learning and telemedicine programs, which will be resolved in conference committee before being forwarded to President Clinton for his signature.
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| TOWER COMPANY ANNOUNCES PLAN TO BUILD TOWERS ALONG I-94 |
A South Dakota company announced
plans earlier this summer to build a string of 330 foot towers across North Dakota along
Interstate 94 with the intention of leasing space on them to wireless phone companies. The
company, Sioux Falls Towers, said they intend to construct towers about every nine miles
along the interstate systems in North Dakota and South Dakota, according to the Associated
Press. A company spokesman said Sioux Falls Towers offers free rental space on the towers to counties and other entities, such as the Park Service. "We have made an offer to the Theodore Roosevelt National Park and as we go to the counties, we make it known to county sheriffs and emergency systems that they are welcome to place their equipment on our towers at no charge," the spokesman said.
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| ISFS ORGANIZE RALLY AGAINST ACCESS CHARGES |
A dozen internet service providers
(ISP) recently organized a rally and rock concert on the grounds of the United States
Capitol to protest HR 1291, a bill that apparently gives the Federal Communications
Commission the authority to order access charges for internet telephony service. Although the event was thinly attended, it did have one particularly influential guest: FCC Chairman William Kennard, who said, "If the internet can deliver a telephone conversation or a movie or a rock concert less expensively than through traditional means, than so be it. Its good for competition."
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| NECA BROADBAND STUDY RESULTS RELEASED |
The National Exchange Carrier
Association (NECA) earlier this summer announced the results of a new study estimating the
dollar investment needed to upgrade rural telephone lines to broadband capability. The
study was conducted to estimate the cost of fully deploying broadband facilities to all
Americans and to determine the extent rural telephone companies have already implemented
high-speed service. According to the study, approximately 65 percent of rural telephone lines will be broadband-capable by 2002, but the difficulty of upgrading is significantly higher because of the large size of exchange areas, low line density and dispersed locations of telephone customers in rural America. NECA said the cost of upgrading lines in small towns is about $500 per line that are within 18,000 feet of a telephone exchangess central office and escalates to between $4,121 to $9,328 per line as those subs become more remote. According to NTCAs Washington Report, the companies NECA surveyed covers more than a third of the land area of the 48 contiguous States, plus Hawaii, but serve just under 6 percent of Americas households. The newsletter also notes that study calculations include plant upgrades on the customer side of switches, but do not include investment expenses on DSL equipment, switch and backbone transport to other service areas or the maintenance involved in upgrading the network to provide broadband services.
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| TEXAS MANDATES ACCESS CHARGE REDUCTIONS---PASS THRU TO CUSTOMERS |
Texas telephone customers using
intrastate long distance services have now seen rates decrease six cents per minute in the
last 11 months since the State Legislature passed(SB 560) and Governor George W. Bush
signed a law requiring Southwestern Bell to reduce switched access rates. In addition,
according to the NARUC Bulletin, the three largest long distance providers in Texas,
AT&T, Sprint and Worldcom, are required to pass along the access rate reductions to
residential customers, subject to PUC verification. Long distance companies pay access charges to local telephone companies for the use of local lines and equipment needed to connect long distance calls. Last year the Texas PUC ordered a decrease in long distance access charges to offset fees for the State Universal Service Fund, which supports telephone service in rural high-cost areas of Texas. After lawmakers gave the PUC authority to order long distance companies to pass along lower access fees to customers, local phone companies now use payments from the State Universal Service Fund in place of high access charges to keep local phone service affordable for all State residents.
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| CONN. SAYS VERIZON WIRELESS MUST PAY INTO STATE USF |
The Connecticut Supreme Court has
rejected Verizon Wireless contention they did not have to pay into a State Universal
Support Fund (USF). The fund in Connecticut subsidizes basic phone service for low-income
customers. In its argument before the Court, Verizon claimed that Federal law bars States from assessing a wireless carrier for universal service contributions--unless the wireless carrier provides a substitute for basic residential phone service in a substantial portion of the State. Verizon cited Section 332 of the Communications Act of 1934, as amended, according to State and Local Communications Report, which says "no State or local government shall have any authority to regulate the entry of, or the rates charged by, any commercial mobile radio service (CMRS) provider." The Connecticut Supreme Court held that Section 332 allows the State to regulate "other terms and conditions" of CMRS provision, "without having to satisfy the substitutability condition." It ruled that a universal service contribution is one such term or condition, which doesnt "constitute a prohibited rate regulation." The Court also rejected Verizons claim that the assessment amounted to "double taxation" because the wireless company already contributed to the Federal Universal Service Fund.
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| FCC ADOPTS "CALLS" PLAN TO REDUCE ACCESS |
The Federal Communications
Commission (FCC) earlier this summer adopted the access reform proposal for price cap
companies developed by the Coalition for Affordable Local and Long Distance Services
(CALLS). The FCC said it will reduce access charges paid to those price cap local exchange
carriers by $3.2 billion. The plan, which does not apply to Rate of Return carriers, will
cut and restructure access charges over the next five years. Under the order, the existing presubscribed interstate carrier charge (PICC) on residential long distance bills will be eliminated by combining it with the subscriber line charge (SLC). In addition, the plan establishes a new universal service mechanism, making $650 million of implicit funding, explicit. The price cap carriers will establish a new line item on bills to recover universal service contributions.
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| FCC ISSUES REPORT ON
AVAILABILITY OF HIGH-SPEED SERVICES |
The Federal Communications
Commission recently issued their report on the availability of high-speed and advanced
telecommunications services and announced that services are being deployed in a timely
fashion, but certain groups are vulnerable to not receiving those services. The OPASTCO newsletter said the report answered the four questions the FCC set out in its notice: Question 1: What is advanced telecommunications capability? Answer: The FCC retained its current definition: infrastructure capable of delivering a speed of 200 kilobits (kbps) per second in each direction, while the Commission designates "high-speed" those services with more than 200 kbps capability in at least one direction. Question 2: Is advanced telecommunications capability being deployed to all Americans? Answer: The report found that 59 percent of the zip codes in this country have at least one subscriber to high-speed services and 91 percent of the countrys population live in those zip codes. Question 3: Is overall deployment reasonable and timely? Answer: The FCC said that those outside of population centers, including rural customers, are particularly vulnerable to not being served by market forces alone (there was at least one subscriber to high-speed service in 57 percent of the sample of small town zip codes, compared to 19 percent of the most sparsely populated zip codes). Question 4: What actions will accelerate development? Answer: The FCC said it will streamline the equipment approval process for wireless and customer premise equipment with advanced telecommunications capability. The Commission will also continue its commitment to the E- Rate and consider making more spectrum available for broadband services -- both licensed and unlicensed. In addition, the commission said it will initiated a proceeding on the issue of whether or not to establish a national policy to mandate access by multiple internet service providers to a cable companys platform.
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| CIRCUIT COURT REJECTS NUMEROUS FCC RULES, INCLUDING RURAL EXEMPTION |
The Eighth U.S. Circuit Court of
Appeals vacated theFederal Communications Commissions rules on rural exemptions and
preexisting agreements, as well as vacated and remanded the agencys pricing rules,
according to NTCAs Washington Report. In rejecting the FCCs rules on rural exemptions, the Court said the agency has set a virtually unachievable standard for rural companies to prove if they wanted to enjoy the protection that Congress gave rural companies in the Federal Telecommunications Act of 1996. Congress said that rural incumbent local exchange carriers should not be required to provide interconnection or unbundled access to their network elements or resale of their facilities to a competitive local exchange carrier (CLEC) unless a State Public Service Commission finds the request is "not unduly economically burdensome, technically feasible and consistent with Section 254 of the Act." The 8th Circuit Court of Appeals completely rejected the Commissions approach to handling rural exemptions and said: 1-The FCC eliminated two of the three prerequisites that must be satisfied before a State commission may terminate an exemption. 2-The FCC unreasonably interpreted the phrase "unduly economically burdensome." 3-The FCC impermissibly placed the burden of proof on rural telcos instead of on the competitor petitioning to throw out the rural telcos exemption from interconnection or resale. NTCA reported, "The 8th Circuit said that a State Commission looking at the FCCs rules would conclude that if a rural telco had failed to show an undue economic burden, its rural exemption must be terminated, regardless of the existence of the rural companys other defenses of technical infeasibility and/or inconsistency with Section 254 of the Act. The Court also said that the FCCs interpretation of the "unduly economically burdensome" language of the law as "undue economic burden beyond the economic burden that is typically associated with efficient competitive entry" has a completely different meaning than the language Congress specifically wrote to protect small and rural telephone companies. Finally, in rejecting the FCCs placing the burden of proof on small, rural telcos, the Court said the plain meaning of the Federal Telecom Act requires that competitors, requesting interconnection, unbundled network elements or for resale from the incumbent local exchange carrier, has the burden to prove that the request meets the three requirements to justify the termination of a rural incumbents rural exemption.
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| UTAH
SAYS "NO" TO CELLULAR REQUEST FOR ETC IN RURAL AREAS |
The Utah Public Service Commission
recently rejected Western Wireless application to be designated a Eligible
Telecommunications Carrier (ETC) in areas served by smaller, rural telephone companies,
but did approve their ETC designation for areas within Utah served by Qwest
Communications. The decision by Utah regulators seems to be identical to that of the North Dakota Public Service Commission, who said that making Western Wireless eligible for State and Federal Universal Service Fund support would not be in the "public interest." The Utah Commission went on to say that allowing a second ETC in the rural areas could reduce rural telcos revenues without reducing their costs, and that the difference would have to be offset by State Universal Service Funds.
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| PRESIDENT SIGNS WIRELESS TAXATION LAW |
President Clinton recently signed into law a measure (HR 4391) that would reserve local taxation of mobile phone calls to local tax authorities in a callers "place of primary use." The Cellular Telecommunications Industry Association said the new law would benefit "not only Americas 100 million wireless customers but also state and local taxing jurisdictions and wireless telecommunications carriers," according to Telecommunications Reports. |
| FCC EXPANDS NATIVE AMERICAN RATE TO "NEAR-RESERVATION" AREAS |
<The Federal Communications
Commission (FCC) recently adopted rules that expand the obligation of Eligible
Telecom-munications Carriers (ETCs) providing Lifeline and Link Up support to tribal
lands to include "Near-Reservation" areas, as well. "Near a Reservation" refers to areas or communities adjacent or contiguous to reservations, as designated by the U.S. Bureau of Indian Affairs, where extension of financial assistance and social services are considered appropriate. Local exchange companies offering Lifeline and Link Up programs on or near reservations must submit letters and certifications to the Universal Service Administrative Co. (USAC) by September 1, to receive reimbursements for services provided in the fourth quarter of 2000. By October 1, 2000, ETCs must implement the tariff and billing system changes necessary to offer enhanced Lifeline and Link Up support to qualifying individuals.
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| STATES
ATTACK ADS BY WORLDCOM, AT&T, SPRINT |
Several States have filed lawsuits
attacking the advertising practices of WorldCom, AT&T and Sprint in the long distance
services market, according to State and Local Communications Report. The States attorneys general said the companies ads cite low per-minute rates that dont take into account monthly fees, minimum charges, higher rates for intrastate calls and peak calling periods. The Minnesota AGs office said seven States had filed lawsuits against WorldCom: California, Connecticut, Georgia, Maine, Minnesota, Missouri and New Jersey. Connecticut also filed lawsuits against AT&T and Sprint. Maine also filed a lawsuit against AT&T. Illinois filed a suit against Sprint. |
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