
THE STATEWIDE BUZZER
VOLUME 17, NUMBER 2 APRIL 20, 2000
| U.S.
ACCUSES 8 NATIONS OF UNFAIR TELECOM PRACTICES |
The
Clinton administration recently accused Mexico, Canada and Britain and five
other nations of erecting trade barriers to keep American telecommunications
companies out of their markets.
Although the United States did not announce that any immediate cases would be filed with the World Trade Organization, it set a series of deadlines for the countries to remove the offending barriers or risk that WTO cases would be filed. The other nations named in the annual review of telecommunications practices were Germany, South Africa, Peru, Israel and Taiwan. Prior to the administrations accusations it issued a separate report accusing Japan of violating its WTO commitments by refusing to lower interconnection fees that U.S. telecom companies complain are designed to keep them out of the Japanese market.
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| RED
RIVER HOLDS 49TH ANNUAL MEETING |
Red
River Rural Telephone Association held their annual membership meeting March
16 and announced a distribution of $332,903 in capital credits.
Philip Bolme, James Schultz and Chester Lura were all re- elected to their seats on the board. Mr. Schultz serves as Red Rivers representative on the North Dakota Association of Telephone Cooperatives board of directors.
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| ALABAMA
LEGISLATURE WEIGHS WIRELESS REGULATION |
A
bill has been introduced in the Alabama legislature making cellular services
and service providers subject to regulation by the States Public Service
Commission. Governor Don Siegelman (D) has also suggested giving the PSC
authority to regulate the cellular industry. The Governor said, I
have serious concerns the industry is not addressing the issues of consumer
protection and public safety with regard to cellular communications.
The Communications Act of 1934 precludes States from regulating CMRS (commercial mobile radio service) providers market entry or prices, and wireless carriers in the past have asked courts to overturn other States consumer- protection actions as Federally forbidden rate regulation, according to State and Local Communications Report.
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| NATIONAL ASSOCIATIONS CRITICAL OF RUS MOBILE TELECOM PROPOSAL |
In
joint comments filed last month, the U.S. Telecom ASSOCIATIONS CRITICAL
Association, National Rural Telecommunications OF RUS MOBILE Association,
The Organization for the Protection and TELECOM PROPOSAL Advancement of
Small Telecommunications Companies and Western Rural Telephone Association
took issue with a Rural Utilities Service (RUS) proposal seeking to expand
RUSs authority to lend for mobile telecom services.
The associations voiced two principal concerns with the RUS proposal, according to the Texas Telephone Association. First, they challenged the agencys definition of mobile service as fundamentally different from telephone service, under provisions of the REA statute, thereby circumventing the non-duplication provision in the law. The associations contend that mobile service is telephone service and that RUS is prohibited by law from lending to provide mobile service in any area that is receiving adequate telephone service. Second, the associations object to language in the proposed rule that simply assumes that mobile companies are in compliance with the State Telecommunications Modernization Plan requirements, while wireline borrowers are held in strict compliance with the law.
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| NTCA
REPORTS OVER 700 ATTENDEES FOR LEGISLATIVE CONFERENCE |
NTCA
announced that over 700 cooperative representatives, including 38 from North
Dakota, descended on Washington, recently to advocate a variety of
independent telecom issues before policy makers in the nations capital.
In addition to hosting their annual Congressional Luncheon for members and staff of the States delegation, North Dakota representatives met with 65 urban members of Congress to explain the issues affecting rural telephony and their impact on urban Americans. A group of North Dakotans also met with Rural Utilities Service acting administrator Chris McLean and deputy administrator Roberta Purcells during their trip to Washington, D.C.
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| NTCA
CRITICAL OF LONG DISTANCE COMPANIES |
NTCA
recently filed comments with the Federal Communi- LONG DISTANCE cations
Commission (FCC) on the access and universal COMPANIES service reform proposal
submitted to the agency by the Coalition for Affordable Long Distance Services
(CALLS). In reality, the coalition is AT&T, Bell Atlantic, Bell South,
GTE, Sprint and SBC.
In its comments, according to the Associations newsletter, NTCA urged the FCC to require all interexchange carriers (IXCs) to offer to their rural customers the same discount calling plans that the long distance companies are currently offering their urban customers, and to charge them the same rates. Many of the long distance companies are not currently offering long-term discount calling plans, such as the AT&T One Rate 7¢ plan, to some customers served by rural telephone companies. In addition, NTCA urged the FCC to confirm that Sprint and AT&T will remove the minimum use charges and the primary interexchange carrier charges (PICCs) on all customer bills, including the customers of rural telephone companies. Both Sprint and AT&T have promised to take this action if the FCC adopts the modified CALLS plan.
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| SENATORS
DORGAN, BROWNBACK TO PUSH WIRELESS TAX BILL |
With
backing from the wireless industry and from State and BROWNBACK TO PUSH
local governments for their wireless taxation bill, Senators WIRELESS TAX
BILL Byron Dorgan (D-N.D.) and Sam Brownback (R-Kan.) promise an aggressive
push to get their Mobile Telecommuni- cations Sourcing Act (S 1755) enacted
this year, according to State and Local Communications Report. Both sponsors
are members of the Senate Commerce, Science and Transportation Committee.
The bill, which was introduced last fall, mandates that only only jurisdictions with authority to tax mobile phone calls would be those within a wireless callers place of primary use. A slightly different measure has been offered in the House of Representatives by Congressman Charles Pickering (R-Miss.). Representatives from the wireless industry and municipalities voiced support for the legislation during the early March hearing. They said the bill was the product of three years of negotiations among industry members, the National Governors Association, the National League of Cities, the Federation of Tax Administrators, and the Multistate Tax Commission.
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| NRTC
ANNOUNCES HIRING OF ANDY BROWN |
NRTC
recently appointed Andy Brown as vice president HIRING OF for industry and
member relations for the organization. Mr. ANDY BROWN Brown was, most recently,
from Blooston, Mordkofsky, Jackson and Dickens, a Washington, D.C. based
telecommunications law firm. Prior to that, he spent 17 years with the National
Telephone Cooperative Association.
A press release from NRTC indicates Mr. Brown will work with the strategic leadership and management of the companys industry and member relationships, member growth and public relations.
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| DAVE
KELLEY RESIGNS FROM ONVOY |
Onvoy,
formerly the MEANS network in Minnesota, FROM ONVOY announced in mid-March
the board of directors had accepted the resignation of David Kelley, Onvoys
President and CEO.
Kelleys resignation is effective immediately. Onvoy board chairman Paul Hoff will serve as interim CEO while a search for a new CEO is conducted. A group of 65 Minnesota telephone companies own 75 percent of Onvoy. The remaining 25% is owned by Soros Private Equity partners of New York, who invested $50 million in Onvoy in September 1999.
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| NCDC
AND CADP MEMBERS VOTE TO MERGE |
The
memberships of North Central Data Cooperative MEMBERS VOTE TO (NCDC) of
Mandan, N.D. and Central Area Data Processing MERGE Cooperative (CADP) of
St. Peters, Mo. voted in mid-March to consolidate the two organizations
into a new cooperative, National Information Solutions Cooperative (NISC).
When the merger is complete, the NISC membership will be 430 members in 46 States serving over 5 million electric or telephone subscribers. The new organization is projected to have assets of $31 million, equity of $9 million and annual revenue of $43 million. Offices employing 480 will be maintained in Mandan and St. Peters, and the consolidated organization is scheduled to be operational prior to July 1, 2000.
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| BEK
COMMUNICATIONS ANNOUNCES MERGE2000" |
BEK
Communications of Steele, N.D. has announced plans for Merge2000"
which will incorporate the cooperatives subsidiary companys
customers into the co-op. If the proposal is approved at BEKs annual
meeting in June, a single cooperative entity will be formed on January 1,
2001.
The affected exchanges of the subsidiary, BEK I, include Lehr, Linton, Napoleon, Steele, Wishek and Zeeland.
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| USDA
REPRESENTATIVE SAYS BORROWERS SHOULD BE GRADUATED FROM THE PROGRAM |
The
Department of Agricultures Rural Utilities Service (RUS) loan programs
recently received unexpected scrutiny when one of the agencys representatives
from the Office of Inspector General (OIG) testified that recent audits
were highly critical of the sound financial strength of many RUS borrowers
and that Congress should work with USDA to graduate borrowers from
the loan program, according to NTCAs Washington Report.
The attack on RUS borrowers was unanticipated because a Congressional committee was holding a hearing on legislation to create a new $1.25 billion loan guarantee program for the provision of local-to-local broadcast television signals. The program would be administered by RUS, however. In response, NTCA executive vice president Michael Brunner sent letters to every member of Congress citing the organizations full support of the RUS and its loan programs and said the audit was misleading because graduating borrowers is neither envisioned nor required by the Rural Electrification Act.
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| STATE
SCHOOL OFFICIALS REQUEST RAISE IN E-RATE CAP |
The
Council of Chief State School Officers has asked the Federal Communications
Commission (FCC) to ensure that there are enough funds to provide adequate
assistance for all eligible schools and libraries seeking telecom
discounts for the third year of the E-Rate program. Applicants
have requested $4.72 billion for year three.
The Council told the FCC that retaining the annual cap of $2.25 billion would mean that not even schools and libraries that qualify for a 90% discount would be guaranteed support for internal connections. It also asked the FCC to let unused program funds from earlier years to roll over to subsequent years.
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| TELEPHONE SUBSCRIBERSHIP STAYS LEVEL ACROSS U.S. |
More
than 94 percent of American households have telephone service, according
to the U.S. Census Bureau.
Arkansas had the lowest level of subscribership, at 87.2% compared with Pennsylvanias high of 97.5 percent. Ninety- five percent of households headed by whites had telephone service, while 87.7% of homes headed by blacks and 89.7% of Hispanic-headed homes had service. Ninety percent of unemployed people had phone service, and 95.6% of employed people did.
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| US
WEST-QWEST AGREE TO MINNESOTA CONDITIONS FOR MERGER |
US
West and Qwest Communications reached an agreement last week with two Minnesota
state agencies to ensure that the proposed merger, if approved, benefits
Minnesota customers, according to the Associated Press.
The companies have agreed to: *Spend approximately $170 million over the next four years to improve local telephone service in the State; *Offer advanced broadband services to at least 13 Minnesota cities outside of Minneapolis-St. Paul; *Invest in preparation of their lines in the State so more customers can have access to high-speed Internet and other broadband services; and *Pay penalties of $15 to $50 million per year, with the money to be returned as customer credits if the new company does not meet service quality obligations. The merger has received approval from Federal agencies, pending the FCCs approval of long distance company divesture, and awaits clearance from regulators in Arizona, Minnesota, Montana, Washington, Wyoming and Utah. The merged company will retain the Qwest name and employ about 64,000 people worldwide. The combined company will have more than 3 million miles of fiber in the United States and worldwide, 29 million customers and a local network that is 99.2 percent digitally switched.
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| PRESIDENT
ANNOUNCES PLAN TO DEVELOP TELECOMMUNICATIONS ON RESERVATIONS |
President
Clinton announced this week that all long distance telephone rates will
rise slightly this year to finance his plan to help 300,000 American Indians
maintain telephone service and join the computer revolution, according to
the Washington Post.
Long distance users will see a 0.4 percent increase to generate $17 million annually to subsidize phone service for American Indians. Census figures indicate that half of those homes lack telephones, although the nation is 94 percent wired. About 300,000 Indian households will receive basic phone service, which does not cover long distance calls, for $1 a month.
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| KENNARD
ANNOUNCES FULL FUNDING FOR E-RATE |
Federal
Communications Commission (FCC) Chairman William Kennard said last week
that the agencys E-Rate program will be funded at $2.25 billion for
the programs third year, which begins July 1. It will be the second
straight year the program will receive the $2.25 billion.
Chairman Kennard said that 82 percent of public schools in the country and more than 50 percent of public libraries received E-Rate discounts in 1999 and that there were 36,000 applications totaling $4.7 billion last year.
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| INTERIM
LEGISLATIVE COMMITTEE ON TELECOMMUNICATIONS MEETS |
The
Regulatory Reform Review Commission (RRRC), chaired by West River Telecommunications
Cooperative manager Mick Grosz, recently met in Bismarck to take testimony
on the creation of a state universal service fund.
Steven Haas, Director of State and International Universal Service Programs for the National Exchange Carrier Association, told members of the Commission that North Dakota has wide discretion in which State services it wishes to support. Mr. Haas said programs supported by state universal service funds across the country include high-cost support, revenue recovery or rate rebalancing, emergency 911, telecommunications relay service, the Lifeline program, the Linkup program, state support for schools, libraries and health care facilities, and the provision of special telecom equipment for physically challenged individuals. Representative Grosz noted the difficulty of creating a fund large enough to support all of the desired services and said the first priority of the Commission would be designing a program supporting the high-cost areas of the State that ensures a full deployment of high-quality service for all North Dakotans. The Regulatory Reform Review Commission includes two members of the House of Representatives, Rep. Mick Grosz and Rep. Eliot Glassheim; two members of the Senate, Sen. Vern Thompson and Sen. Rich Wardner; and, Public Service Commission Bruce Hagen.
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| DATES
TO REMEMBER |
May 8-11: Tri-State Operations Conf. Fargo, N.D. June 2:
June 7:
June 8:
June 8:
June 23: |
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