
THE STATEWIDE BUZZER
VOLUME 18, NUMBER 2 February 27, 2001
| AUTOMATIC
ENROLLMENT FOR LIFELINE AND LINKUP IN TEXAS
|
Texas telephone
customers eligible for local lifeline rates can now be automatically enrolled under new
rules adopted by the State Public Utility Commission in late January. They are intended to
extend Lifeline to all eligible customers. The State PUC will provide the Texas Department of Human Services the names of all local telephone providers. The Department of Human Services will identify customers who are eligible for the program and contact the telephone company directly with the information. The telephone company will automatically enroll the customers. Lifeline service offers a discount on local telephone costs for telephone customers who are at or below 125 percent of Federal poverty guidelines. Customers receiving Medicaid, food stamps, Supplemental Security Income, low-income energy assistance (LIHEAP) or Federal public housing assistance automatically qualify for Lifeline. Lifeline service cannot be disconnected for non-payment of toll charges. New customers meeting the eligibility requirements can also receive Link Up Service, which offers discounts on initial connections for local telephone service.
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| SRT PASSES
10,000 INTERNET SUBSCRIBER MARK
|
Souris River
Telecommunications announced this month that it had passed the 10,000 Internet subscriber
level. It began offering the service in 1995. The company celebrated by recognizing a
local woman as the milestone customer and presented her with a new Pentium III 866 MHZ
computer from the telcos computer store. SRT Spokesman Tom Thomas said that the companys success is due to the systems reliability and by offering the largest number of "dial-up access ports" in the area, as well as a customer support department that is open seven days a week. SRT broadband high-speed Internet service was deployed in July of 1998. Digital Subscriber Line (DSL) technology is designed to allow the customer to use a single telephone line for both traditional telephone service and for high-speed Internet access simultaneously. DSL provides speeds from 320 kilobits up to 8 megabits per second. DSL is currently available in Minot, Minot Air Force Base, Burlington, Surrey, Granville, Lansford, Mohall, Towner and Westhope. SRT plans to offer DSL in several additional communities by the end of the year.
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| COMMISSIONER
NESSANNOUNCES SHE WONT SEEK REAPPOINTMENT
|
In a move widely
expected, Federal Communications Commissions Susan Ness announced that she would not
seek reappointment to the agency. President Clinton had given her a recess appointment,
which expires at the end of the current Congressional term in late December. Commissioner
Ness served at the agency for seven years. With the latest news, three seats will be open at the Commission. Since the five member agency can only have three commissioners from the same party, President Bush must nominate 2 Republicans and 1 Democrat.
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| ASSOCIATION
JOINS COALITION IN SUPPORT OF MAG
|
The Association
recently joined a coalition that intends to file comments with the Federal Communications
Commission supporting the Multi Association Group (MAG) Plan. The Rate-of-Return Coalition
will file joint comments on behalf of telecommunications carriers and state associations. The FCC has set a deadline of February 26, 2001 for comments on the MAG Plan.
|
| DASCHLE
ENDORSES DEM FCC CANDIDATE
|
Senate Minority
Leader Tom Daschle sent a letter to the White House last week endorsing former Commerce
Department staffer Mike Copps to fill the Democratic seat on the Federal Communications
Commission being vacated by Commissioner Susan Ness. Copps reportedly also has the backing of Senator Ernest Hollings, the ranking Democrat on the Senate Commerce Committee.
|
| INTERNET
CONTINUES SURGE IN GROWTH
|
During the
second half of 2000 the overall Internet population continued to grow at a healthy clip as
women, minorities and those earning between $30,000 and $50,000 flocked to the Internet.
The Pew Internet Project said that the number of American adults with Internet access grew
from about 88 million to more than 104 million in the second half of 2000. The most dramatic disparities, according to the study, of whether a family has Internet access are defined by income and age. The research noted that 82 percent of those living in households with more than $75,000 in income now have Internet access, compared to 38 percent of those households earning less than $30,000. Age is also a determining factor. A full 75 percent of those between ages 18 and 29 have Internet access, compared to 15 percent of those 65 and over. In some population segments, Internet penetration is getting quite high: 75 percent of those age 18-29 now have access; 82 percent of those with college or graduate degrees have access; 82 percent of those living in households with incomes over $75,000 have access; and almost two-thirds of parents with children living at home are hooked-up. The authors said it was noteworthy, however, that growth rates among those with high incomes and college educations were modest. This suggests that saturation penetration of the Internet even among those at the highest socioeconomic levels could still be several years away. The study says, "By comparison, 94 percent of U.S. households have telephones and 98 percent have televisions and the penetration of both technologies in the highest socioeconomic brackets approaches 100 percent."
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| CALIFORNIA
COURT RULES AGAINST WIRELESS PROVIDERS
|
A California
Appellate court has ruled that wireless carriers are not protected by the Federal
Telecommunications Act for claims against false advertising. The wireless carriers have
said that civil actions, contract claims or violations of consumer protection laws against
them amount to rate regulation and are, therefore, prohibited by Federal Law. Section 332 (c) of the Federal Telecommunications Act prohibits State regulation of commercial mobile radio service (CMRS) providers rates. The wireless industry in North Dakota has made the same claim when service standards or obligations of telecommunications providers is discussed. The case began in 1998, according to State and Local Communications Report, when customers accused the carriers of false advertising, unfair business practices and breach of contract in connection with the cellular providers claim they had a "seamless calling area" throughout southern California. |
| NARUC REPORT URGES COMPETITION BEFORE UNIVERSAL SERVICE | A new report by
the National Regulatory Research Institute (NRRI) suggests the Federal Telecommunication
Acts mandate for competition and universal service has been a failure and that a two-phase
approach that favors competition initially be adopted. NRRI is the research arm of the National Association of Regulatory Utility Commissioners. According to the report, "There is little evidence of facilities- based local competition, with most new entrants providing service through interconnection and unbundled network elements." "Balancing Competition and Universal Service: The Role of the Regulatory Five Years after the Telecommunications Act" examines several possible strategies for regulators trying to meet the twin goals of the Act. It concludes that it would be best for regulators to adopt "a two-phased approach that concentrates first on encouraging competition and then turns to matters of universal service expansion." The author of the report offers a disclaimer by saying her views dont necessarily reflect those of NRRI, NARUC or any of the NARUC-member commissions, such as the North Dakota Public Service Commission, but the Association is concerned this report is a "trial-balloon" to judge the intensity of the opposition.
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| CABLE
ASSOCIATION CHANGES NAME
|
The National
Cable Television Association marked the fifth anniversary of the Telecommunications Act of
1996 by changing its name to the National Cable and Telecommunications Association. Its President and CEO Robert Sachs said the name change reflected the transformation of its members offerings from a "one-way video service to a broad range of advanced, two- way services."
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| FCC
SEEKING COMMENTS ON WIRELESS IN S.DAK.
|
The Federal
Communications Commission (FCC) has asked for comments on a request by Western Wireless
for designation as an eligible telecommunications carrier (ETC) for the Pine Ridge
Reservation in South Dakota. The ETC status is a requirement before a company can receive Federal "high-cost" universal service support. There is also a pending application by Western Wireless for ETC status for a reservation in Montana. Comments and replies are due in the South Dakota case by March 12 and 26th, respectively.
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| MARYLAND
LEGISLATIVE COMMITTEE KILLS BILL TO PROHIBIT TALKING WHILE DRIVING
|
A Maryland
legislative committee has defeated a measure that would have prohibited the use of hand
held mobile phones while driving. The bill was introduced after a Naval Academy midshipman
was found not guilty of vehicular manslaughter for striking another vehicle and killing a
couple while he was using a mobile phone. The bill was defeated 14-7. In North Dakota, the House of Representatives defeated a House Concurrent Resolution directing the Legislative Council to study safety issues related to cellular phones and driving and to report its findings, along with recommendations to the next legislative Assembly. The cellular industry in North Dakota said it was discriminatory to just study them and asked why the resolution did not also include those who were using the radio, cds, eating, drinking, or putting on make-up. Proponents cited a study suggesting that when a driver is on a cell phone conversation it has the same effect on driving as if the driver had a 008 blood alcohol content. The measure was defeated on a voice vote in the House.
|
| TELCOM
ACADEMY TO MEET IN BISMARCK
|
Bismarck State
College will host a three-week Telecommunications Academy on June 4-21 for area high
school students. Twenty-four juniors from throughout North Dakota and eastern Montana will
gather in Bismarck to explore career opportunities in telecommunications, according to the
Polar Connection. The program is a pilot project allowing students to explore basic telecommunications skills, learn how to effectively communicate technical information, explore various computer applications specific to telecommunications and gain insight to telecommunications in the State. Classroom activities will focus on hands-on, interactive activities designed to give students a greater understanding of the telecommunications industry in North Dakota. The Academy is a pilot project being offered at 28 North Dakota schools and two high schools in Montana. It is being coordinated by the Telephone Apprenticeship Training and Safety, N.D. State Board for Vocational and Technical Education, SW Regional Tech Prep, Bismarck State College, Bismarck Public Schools and a number of local independent companies.
|
| NTIA
GRANTS FOR RURAL AREAS
|
The U.S.
Commerce Departments National Telecommunications and Information Administration
(NTIA) announced that approximately $43 million in grants under the Technology
Opportunities Program (TOP) will be awarded this year. Grants will be provided to State,
local and tribal governments, colleges and universities and nonprofit entities. The purpose of the grants, according to a press release, is to extend the benefits of advanced telecommunications technologies to all Americans, especially those in inaccessible, rural and underserved urban communities. The program has made grants for model projects demonstrating innovative uses of network technology. Recipients include State, local and tribal governments, health care providers, schools, libraries, police departments and community-based non-profit organizations. Since 1994, TOP has awarded 456 grants in all 50 States, the District of Columbia and the U.S. Virgin Islands totaling $150 million and leveraging $221 million in local matching funds. Applications are due by March 22, 2001. Application kits can be accessed at www.ntia.doc.gov/otiahome/top/.
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| FURCHTGOTT-ROTH DECLINES TO SEEK ANOTHER TERM
|
Harold
Furchtgott-Roth, one of two Republican commissioners on the Federal Communications
Commission, announced he will not seek a second term on the five- member panel, which
oversees the telecommunications, television and radio industries. Commissioner Furchtgott-Roth spent considerable time with members of the North Dakota independent telephone industry, toured the service territory and headquarters of Reservation Telephone Cooperative and was hosted by members of the Souris River Telecommunications board of directors several years ago.
|
| OPASTCO
TO EXPAND MEMBERSHIP
|
The Organization
for the Promotion and Advancement of Small Telecommunications Companies (OPASTCO)
announced that it will be expanding its membership criteria and adding members and
services that reflect the changing mission of its members. The association said that it would be creating a new non- voting category of membership called "Other Telecommunications Members," which will include Internet service providers, affiliates, cable television, wireless, IXCs, video providers and competitive local exchange companies (CLECs). OPASTCO said it asked its members what areas of telecommunications they expected to offer, OPASTCO was told: *57 percent of OPASTCO members said they will offer voice over IP and more than half of their members plan to directly compete with their own LEC voice services; *65 percent of their members said they have or will have wireless operations, including cellular, PCS, wireless local loop, LMDS, MMDS and Direct Broadcast Satellite; *59 percent of OPASTCO members said they have or will have CLEC operations; *62 percent say they have or will have cable television operations; and *84 percent say they do or will offer broadband.
|
| DICKEY
RURAL APPROVES RATE RESTRUCTURING
|
The Dickey Rural
Networks board of directors recently voted to restructure the telephone rates within its
subsidiary, Dickey Rural Communications (DRC). Effective this summer, the basic rate for
residential and business customers will be $15.75. Darren Moser, general manager, said, "Even though many DRN customers will see a rate increase, the local service restructuring is revenue neutral and will not generate any additional revenue." Approximately 64 percent of those customers will see an increase on their telephone bill and 36 percent will see a decrease. Customers in Ashley, Edgeley, Ellendale, Forman, Kulm, LaMoure and Oakes will see the new rate on their July 15th phone bill. The current rate for residential customers in DRC is $10.89, business is $26.73 and combination service is $17.51 per month. Following the restructuring, all rates will be $15.75 per month. Customers in DRC will see adjustments to the Extended Area Service (EAS) rates as well. Those with current EAS to one exchange will have a rate of $1.70, while those with EAS to two or more exchanges will have a rate of $3.40.
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| CONSOLIDATED
RECEIVES PERMISSION TO LAY CABLE IN NATIONAL GRASSLANDS
|
The Forest
Service announced it will allow Consolidated Telcom of Dickinson to lay cable in the
Little Missouri National Grasslands, according to the Associated Press. Consolidated
had asked for permission to install about 11,850 feet of cable in McKenzie County. The cable, which will parallel U.S. Highway 85 south of Watford City, will enable the company to stay current with industry standards and provide subscribers with more advanced services, a Forest Service employee says.
|
| TEL.
CO-OP TO SELL ITSELF
|
A Indiana
telephone cooperative, Clay County Rural Telephone Cooperative, announced that it has
entered into a definitive merger agreement with Telephone and Data Systems (TDS),
according to The ILEC Advisor. The acquisition by TDS of the co-op has been structured as
a merger so that the co-op membership will receive the full net purchase. The amount each member of the cooperative receives will be calculated in accordance with the co-ops bylaws and will depend on the length of membership and the amount of capital credits accrued. The merger is contingent upon the approval of the cooperatives membership and regulatory agencies. A special meeting of the cooperative members will be held in March or April for a vote on the proposed transaction. Last year, a Alaska commercial company failed in its attempt to acquire Matanuska Telephone Association, a cooperative, when a insufficient number of members supported the sale.
|
| AT&T
PASSES UNIVERSAL SERVICE INCREASE TO CUSTOMERS
|
AT&T
announced it is passing on to consumers an increase in universal service fees that the
company must pay. The change, which was effective at the beginning of the year, results in
a jump in universal service payments from 8.6 percent to 9.9 percent of consumers
total long distance and international calls. In December, the Federal Communications Commission (FCC) proposed collecting $1.3 billion in universal service fees during the first quarter of 2001, up from $1.2 billion in the fourth quarter of 2000.
|
| FCC
AIRWAVE AUCTION SETS RECORD
|
The Federal
Communications Commission said their recent auction of airwaves had raised a record $18.86
billion, with Verizon Wireless winning more than a quarter of the 422 licenses for sale.
The sale, which began December 12, broke the previous auction record of $9.2 billion set
in 1996. After 101 rounds, Verizon Wireless a joint venture of the Vodafone Group and Verizon Communications, spent $8.78 billion for 113 licenses. Winners of the licenses were expected to use them to fill gaps in network coverage, improve service in congested markets and start new products like wireless data and Internet services. Of the 15 markets that received the highest bids, according to Reuters News Service, Verizon Wireless won 9 of the licenses, bidding more than $4 billion for two licenses in New York, $513.5 million for one in Los Angeles, $398.8 million for one in San Francisco, $277.3 million for one in Philadelphia and $216.7 million for one covering Washington, D.C.
|
| MEASURE
TO REPEAL TELCOM TAX INTRODUCED
|
Senate Finance
Committee Chairman Charles Grassley (R-Iowa) has introduced S. 234, a measure to repeal
the 3 percent Federal telecommunications excise tax. A similar measure (H.R. 236) has been
introduced in the House of Representatives. During the 106 Congress, the House and Senate repealed the Federal telecommunications excise tax. However, the legislative language was attached to an appropriations bill that President Bill Clinton vetoed, for reasons unrelated to the tax.
|
| POWELL
NAMED TO HEAD FCC
|
Michael Powell,
a current Commissioner and son of Secretary of State Colin Powell, has been named chairman
of the Federal Communications Commission, a move that indicates a likely shift in the
agencys direction. Unlike his predecessor, William Kennard, Powell has tended to take a hands-off approach to regulating the communications industry. Chairman Powell was named to the FCC by President Clinton in 1997. Prior to his role at the FCC, he served as the Chief of Staff of the Antitrust Division in the Department of justice and in private practice.
|
| STUDY
QUESTIONS GOVERNMENTS ROLE IN TELCOM
|
A recent study,
"Does Government Belong in the Telecom Business?" reports that over 200 State
and local governments are operating telecommunications businesses in the United States.
The paper is critical of municipalities for bucking the Federal trend toward privatization
and expanding their cable television and electric power holdings into telecommunications
services. The author, Jeffrey Eisenbach, says that government entry in the telecommunications industry has grown dramatically during the 1990s and suggests that governments that have entered the business have been saddled with financial losses and obsolete technologies. In the end, they do not achieve their desired goals of lower costs and more rapid deployment of efficient telecommunications systems. The author cites: *109 municipalities provide cable television service *61 offer Internet services *58 lease fiber installations to private companies *32 offer high-speed data services *18 provide local dial-tone telecom service *10 provide long distance service.
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| BELLSOUTH
TO QUIT PAYPHONE BUSINESS
|
BellSouth
announced last month it was exiting the payphone business due to sharp declines in usage.
The company cited increased mobile phone usage as the main reason for the dwindling usage
of its phones, although they also said that rates paid by long distance carriers for use
of the facilities had declined significantly. ILEC Advisor, a industry publication, notes that payphones are a very difficult business right now and cites Davel Communications, which is one of the largest independent payphone providers with 85,000 phones in 43 States. Davel saw its revenues decline 24 percent last year and their stock lose 99.7 percent of its value since last March.
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| DATES
TO REMEMBER
|
March
13: NDATC Board of Directors Meeting Statewide Boardroom Mandan, N.D. March 15: March 18-21: March 28-30: June 14: June 14: June 19: June 28: July 9-11: July 13: July 25:
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