| Senate Subcommittee Holds
Hearing on EchoStar DirecTV Merger |
3/6. The Senate
Judiciary Committee's Subcommittee on Antitrust,
Competition and Business and Consumer Rights held a hearing on
the pending merger of Echostar
and DirecTV.
The witness panel was stacked with opponents of the merger:
Jay Nixon (Attorney General of the State of Missouri), Robert
Pitofsky (a former Chairman of the Federal Trade Commission), Gene
Kimmelman (Consumers Union),
and Edward Fritts (National
Association of Broadcasters). See, prepared testimony of Nixon,
Pitofsky,
Fritts,
and Kimmelman.
However, the Subcommittee also heard from the heads of the two
merging companies: Charles Ergen (Ch/CEO of Echstar) and Eddy
Hartenstein (Ch/CEO of DirecTV). See, prepared testimony of Hartenstein
and Ergen.
Much of the testimony of witnesses, statements of Senators,
and question and answer session, focused on competition
between direct broadcast satellite (DBS) service providers,
and between DBS and cable service providers, in the provision
of TV type programming. Opponents argued it would harm
competition. Ergen and Hartenstein argued it would enhance
competition. However, there was also some discussion of the
merged entity's plans to provide broadband Internet access
services.
Ergen focused on Internet access. He stated that "A very
important benefit of the Echostar and Hughes merger is that it
will eliminate the so-called ``digital divide´´ that exists
in the ``wired´´ world today by making satellite delivered
high speed Internet access a viable alternative for all
Americans. Today, about 67 million households have access to
DSL or cable modem service. These are the digital ``haves´´
who are located primarily in the major metropolitan areas. But
in rural America today, there's what I like to call a ``no-opoly.´´
Nobody -- not the cable companies, not the phone companies --
is providing broadband service."
"Initially, the combined company will have the subscriber
base and financial means to make our current satellite
broadband offerings more affordable. But, we are committed to
making next generation satellite broadband service a reality
for customers everywhere in the United States by deploying a
new generation of satellites utilizing Ka-band spectrum. We
will offer a high speed Internet service that is not only
price competitive with existing providers in urban and
suburban settings, but also a tremendous benefit for rural
consumers who have no broadband options."
Sen. Orrin Hatch
(R-UT), the ranking Republican on the full Committee,
expressed concern about broadband. He stated that "In
addition to the traditional antitrust inquiry, I have some
concerns about the operation of gatekeeper power over
broadband internet services that might limit the options
consumers have in accessing the information they want from the
internet." See, Sen. Hatch's opening
statement.
Sen. Hatch added that "I am concerned for the success of
the DBS business as a competitive force for the benefit of
television viewers, broadband internet subscribers, and
creative content developers who need distribution choices to
deliver their goods and services to consumers."
No member of the Subcommittee endorsed the merger. Sen. Sam Brownback
(R-KS) stated that "the benefits of this merger, in my
view, are murky." Sen.
Arlen Specter (R-PA) stated that "it is hard to
understand how competition would not be lessened" by this
merger.
Sen. Herb Kohl (D-WI),
the Chairman of the Subcommittee, stated that antitrust
authorities, if they approve this merger, must issue a
detailed consent decree that would impose a number of
requirements on the merged entity (such as provisions
pertaining to a uniform national pricing plan, delivery of
local programming in all TV markets, must carry, and broadband
deployment).
Sen. Mike DeWine
(R-OH), the ranking Republican on the Subcommittee, stated
that he is "keeping an open mind about this deal because,
frankly, it does offer some tangible benefits." He
further stated "The parties also argue that a combined
satellite company would be able to offer a less expensive,
more price competitive high speed Internet product. As the
country continues to move toward greater use of broadband
services, consumers certainly would be well serviced by an
improved satellite option."
Sen. Wayne Allard
(R-CO), who is not a member of the Committee, participated in
the hearing, but only to provide a glowing introduction of
Charles Ergen, whose company is based in Middleton, Colorado.
See also, Sen. Leahy's prepared
statement.
David Charles, Chairman of the National Alliance of
Medical Researchers and Teaching Physicians, wrote a
letter to Sen. Kohl on March 5 expressing support for the
merger on the basis that satellite based high speed Internet
services would facilitate telemedicine in rural areas. |
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| Senate Committee Holds
Hearing on Communications Infrastructure |
3/6. The Senate
Commerce Committee's Communications Subcommittee held a
hearing on the security, resiliency and reliability of the
communications infrastructure in light of the terrorist
attacks of September 11. The hearing focused on public safety
communications.
Sen. Daniel Inouye
(D-HI), the Chairman of the Subcommittee, presided. He stated
that "we must continue to explore ways to improve the
resiliency and reliability of our communications
infrastructure. Moreover, because reliable communications are
critical to the success of emergency personnel, our efforts
should also include a consideration of ways in which new
technological tools -- such as location information, peer to
peer communications, reverse messaging, and broadband
applications -- can be utilized by emergency personnel in
order to help save lives."
Agostino Cangemi, of the Department of Information Technology
and Telecommunications of the City of New York, testified. He
stated that New York City (NYC) is mapping the location, and
identifying the ownership, of all broadband fiber in NYC. His
office is coordinating with businesses to facilitate their
obtaining redundant and resilient communications systems. He
stated that NYC is also developing a redundant fiber conduit
for its own facilities. He also stated that NYC is allowing
property owned by the city to be used for telecom facilities,
such as wireless service antennas, to improve coverage.
Steve Souder, of Montgomery County, Maryland, stated that
communications between first responders on September 11
functioned well. He elaborated that this was a result on long
term planning following an incident on January 13, 1982, when
a jet crashed on take off from Reagan National Airport into
the Potomac River in downtown Washington DC. First responders,
which then operated with radios on divergent portions of the
radio spectrum, could not communicate effectively. All but
five people on the flight died.
As a result, the FCC allocated the 800 MHz band for public
safety personnel. This, said Souder, enabled the first
responders on September 11, 2001 to communicate effectively.
However, Souder continued that public safety personnel have
also become dependent on cellular networks to communicate with
other government and private sector entities. These cellular
networks gridlocked in New York on September 11. He stated
that this needs to be addressed. He also said that public
safety authorities need more spectrum.
Sen. Conrad Burns
(R-MT), the ranking Republican on the Subcommittee, questioned
witnesses about their need for more spectrum. Souder responded
that the FCC has allocated spectrum to be vacated by TV
broadcasters as they transition to digital television, but
that this is not scheduled to become available until 2006.
Souder stated that the additional spectrum is needed now.
Sen. Ron Wyden (D-OR)
stated that "I am going to be introducing legislation
very shortly that is the technology equivalent of the national
guard". He further explained that private companies, such
as Intel, are interested in providing equipment and personnel.
He also questioned witnesses about this. He asked if it would
be useful to have a pre existing database listing private
sector resources that public safety could call upon in a
disaster. Cangemi said that "it would be extraordinarily
helpful". Sen. Wyden also advocated the creation of a
"strategic technology reserve" containing technology
equipment, analogous to the "strategic petroleum
reserve". Both Cangemi and Souder praised the concept. |
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| FTC Completes HP Compaq
Review |
3/6. The Federal Trade
Commission (FTC) announced that it has closed its
investigation of the proposed merger of Hewlett Packard (HP) and Compaq without taking
action. See, FTC release.
The FTC wrote to the parties: "The Commission has
conducted an investigation of possible violations of Section 5
of the Federal Trade Commission Act and Section 7 of the
Clayton Act by the consummation of a proposed merger of
Hewlett Packard Company and Compaq Computer Corporation. Upon
further review of this matter, it now appears that no further
action is warranted by the Commission at this time.
Accordingly, the investigation has been closed." See, for
example, letter
to HP.
HP Ch/CEO Carly Fiorina stated in a release
that "We are gratified by the FTC's decision. It
validates our conviction from the outset that the merger can
only enhance competition throughout our markets ... Completion
of the FTC review marks a major milestone in the approval
process, and we are now focused on winning the shareowner
vote." |
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| FTC Files Complaint Against
Palm for False Advertising |
3/6. The Federal Trade
Commission (FTC) brought and settled an administrative
action against Palm for
inaccurate advertising claims regarding its PDAs. See, FTC release.
The FTC filed an administrative complaint
[PDF] against Palm alleging violation Section 5(a) of the
Federal Trade Commission Act, 15 U.S.C.
§ 45, in connection with claims in advertising and
packaging that Palm's hand held computers, or personal data
assistants (PDAs), come with built-in wireless access to the
Internet and e-mail.
The complaint alleges that Palm "has represented,
expressly or by implication, that ... Palm PDAs, as sold,
contain everything that consumers need to access the Internet
and their email accounts, wirelessly."
The complaint continues: "In truth and in fact ... Palm
PDAs, as sold, other than the Palm VII model line, do not
contain everything that consumers need to access the Internet
and their email accounts, wirelessly. In order to wirelessly
access the Internet and their email accounts using the Palm
m100, Palm III, or Palm V model lines, consumers must purchase
and carry a separate wireless modem or a device to connect the
Palm to certain mobile telephones."
The complaint further alleges that Palm made similarly false
claims that "Palm PDAs, as sold, can perform common
business functions such as data base management, custom form
creation, and viewing Microsoft Word and Excel
documents."
The FTC and Palm simultaneously entered into an Agreement
Containing Consent Order settling the matter. Without
admitting wrongdoing, Palm agreed, for example, that it would
not misrepresent that its PDAs are "able to perform any
common business function that it cannot perform without
additional products or services that consumers must
purchase".
The FTC imposed no fine. The Commission voted 5 to 0 to
approve the agreement. The agreement becomes final after a 30
day public comment period. See also, Exhibits A-E
[7 MB in PDF], and the FTC's Analysis of
Proposed Consent Order to Aid Public Comment. |
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| Rep. Sensenbrenner Backs FTC DOJ Agreement |
3/5.
Rep. James
Sensenbrenner (R-WI), the Chairman of the House Judiciary
Committee, announced his support for the Memorandum of
Agreement between the Federal
Trade Commission (FTC) and the Department of Justice's
(DOJ) Antitrust Division
concerning clearance procedures for merger reviews and other
antitrust matters. The Judiciary Committee has jurisdiction
over antitrust matters.
Rep. Sensenbrenner stated in a release
that "I support this sound plan for how antitrust issues
will be handled by the DOJ and FTC. I believe it promotes a
more efficient use of DOJ and FTC antitrust resources in
addition to reducing unnecessary and duplicative burdens
placed upon employees and employers. Furthermore, this plan
offers a `win-win´ by assigning antitrust areas based upon
the particular agency's experience and expertise."
The agreement defines, by market, which transactions will be
reviewed by which agency. For example, the FTC will have
responsibility for transactions involving companies that
provide computer hardware, professional services, and
satellite manufacturing and launch, and launch vehicles. The
DOJ will have responsibility for transactions involving media
and entertainment, telecommunications services and equipment,
and financial services.
So, perhaps, the two antitrust regulatory authorities have
colluded to allocate the market, and Rep. Sensenbrenner has
justified their collusion on the basis that it will increase
efficiency. |
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| People and Appointments |
3/6. Monica Desai, Legal Advisor to Federal Communications Commission
(FCC) Commissioner Kevin Martin
for wireless and international matters, is leaving his office
to join the Common Carrier Bureau's Competitive Pricing
Division. An FCC
release states that she seeks "a flexible work
schedule, which will enable her to spend more time with her
family". Samuel Feder, who has been Commissioner
Martin's Legal Advisor for common carrier matters, will assume
responsibility for wireless and international issues. Daniel
Gonzalez joined the office as Legal Advisor for common
carrier matters. Gonzalez was previously Vice President,
External and Regulatory Affairs, for XO Communications. Before
that, he was Legal Advisor to former FCC Commissioner Rachelle
Chong for common carrier matters.
3/6. Henry Sténson was named Senior Vice President,
Corporate Communications, at Ericsson. He will begin
during the summer of 2002. He will replace Roland Klein, who
is leaving Ericsson. See, Ericsson
release.
3/6. Jonathan Lamy was named Director of Communications
at the Recording Industry
Association of America (RIAA). He replaces Jano Cabrera
left to become Communications Director for former Vice
President Al Gore's political action committee, Leadership
'02. Lamy previously worked in media relations for Sen. Patrick Leahy (D-VT),
the current Chairman of the Senate Judiciary
Committee, and Rep.
Marty Meehan (D-MA), a member of the House Judiciary
Committee. The Judiciary Committees have jurisdiction over
intellectual property matters. |
|
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| More News |
3/6. The House
Commerce Committee's Subcommittee on Telecommunications
and the Internet postponed its meeting to mark up HR 3833
[PDF], the "Dot Kids Implementation and Efficiency Act of
2002", to Thursday, March 7. The bill would provide that
"The NTIA shall require the registry selected to operate
and maintain the United States country code Internet domain to
establish, operate, and maintain a second level domain within
the United States country code domain that provides access
only to material that is suitable for minors and not harmful
to minors". The original version of the bill, HR
2417, would have required a top level international
domain. The Subcommittee held a hearing on HR 2417 on November
1, 2001. See, TLJ
Daily E-Mail Alert No. 300, Nov. 2, 2001.
3/6. The Federal Trade
Commission (FTC) published notice
in the Federal Register that it will host a two day public
workshop on May 16 and 17 to explore issues relating to the
security of consumers' computers and the personal information
stored in them or in company databases. Requests to
participate as a panelist in the workshop must be filed on or
before April 1, 2002. See, Federal Register, March 6, 2002,
Vol. 67, No. 44, at Pages 10213 - 10215.
3/6. U.S. Trade Representative
(USTR) Robert Zoellick met with the Singapore Minister for
Trade George Yeo to discuss the status of negotiations on the
U.S. Singapore Free Trade Agreement (FTA). Zoellick stated in
a release
that "The United States and Singapore are making
excellent progress in our negotiations for a Free Trade
Agreement ... This will be a concrete sign of America's
economic and political commitment to Singapore, Southeast
Asia, and free trade."
3/4. Federal Communications
Commission (FCC) Chairman Michael Powell
gave a speech
at the Competitive
Telecommunications Association's (CompTel) annual
convention in Miami, Florida. He provided an overview of some
recent actions by the FCC.
3/6. The General Accounting
Office (GAO) released a report [PDF]
titled "Information Security: Additional Actions Needed
to Fully Implement Reform Legislation". The report
addresses "efforts by the federal government to implement
provisions for Government Information Security Reform ... that
were enacted as part of the National Defense Authorization Act
for Fiscal Year 2001." This report was written by Robert
Dacey, Director of Information Security Issues at the GAO, to
submit as prepared testimony to House Government Reform
Committee's Subcommittee on Government Efficiency,
Financial Management and Intergovernmental Relations. |
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| Thursday, March 7 |
9:00 AM - 5:00 PM. The National
Institute of Standards and Technology's (NIST) Computer System Security
And Privacy Advisory Board (CSSPAB) will meet to discuss
computer security legislation, privacy issues, critical
infrastructure protection, the USPS's electronic postmark
products, and other matters. This is the third day of a three
day of meeting. See, notice
in Federal Register. Location: General Services
Administration, 7th and D Streets, SW, Room 5700.
9:30 AM. The U.S.
Court of Appeals (DCCir) will hear oral argument in USTA
v. FCC. Judges Edwards, Randolph and Williams will
preside. Location: 333 Constitution Ave. NW.
10:00 AM. The Senate
Appropriations Subcommittee's Subcommittee on Commerce,
Justice, State, and the Judiciary (CJS) will hold a hearing on
the administration's proposed budget estimates for FY 2003 for
the SEC and the FCC. SEC
Chairmam Harvey
Pitt and FCC Chairman Michael Powell
will testify. See, CJS
release. Location: Room 253, Russell Building.
10:00 AM. The House
Commerce Committee's Subcommittee on Telecommunications
and the Internet will mark up HR
3833 [PDF], the "Dot Kids Implementation and
Efficiency Act of 2002", sponsored by Rep. John Shimkus
(R-IL) and Rep. Ed
Markey (D-MA). Rep. Fred
Upton (R-MI) will preside. This meeting was rescheduled
from March 6. Location: Room 2322, Rayburn Building.
10:00 AM. The Senate
Banking Committee will hold a hearing. Federal Reserve
Chairman Alan Greenspan will deliver his semi annual
report on monetary policy. Location: Room 106, Dirksen
Building.
10:00 AM. The Senate
Judiciary Committee has scheduled a business meeting. The
agenda includes mark up of several bills, including S
1615, the Federal Local Information Sharing Partnership
Act of 2001. Location: Room 226, Dirksen Building.
10:30 AM -
12:30 PM.
The House Science
Committee's Subcommittee on Research will hold a hearing
titled "Meeting the Demands of the Knowledge Based
Economy: Strengthening Undergraduate Science, Mathematics and
Engineering Education". Location: Room 2325, Rayburn
Building.
12:00 PM. USPTO Director James Rogan
will host an online discussion with USPTO customers and the
public regarding the work of the USPTO. To participate, visit
the USPTO home page and click on the link titled "Online
Chat with the Director of the USPTO". See, USPTO
release. |
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| Friday, March 8 |
12:15 PM. The FCBA's
Transactional Practice Committee will host a brown bag lunch
on mass media transactions. RSVP to Sue Fischer at 202
776-2491. Location: Dow
Lohnes & Albertson, 1200 New Hampshire Ave.
12:30 - 2:00 PM. The New
American Foundation will host a panel discussion titled
"Unwired Security: Is a National Wireless Emergency
Network Necessary?" The speakers will be Reed Hundt (McKinsey
& Co.), Thomas Wheeler (P/CEO of the Cellular
Telecommunications & Internet Association), and Robert
Gurss (Shook Hardy & Bacon). RSVP to Laura Gillespie at gillespie @newamerica.net
or 202 986-4901. Location: 1630 Connecticut Ave., NW, 7th
Floor.
Extended deadline for submitting comments to the FCC in response
to its Further Notice of Proposed Rulemaking regarding the
current state of the market for local and advanced
telecommunications services in multi tenant environments. See,
FCC
notice of extension of deadline [PDF]. This is WT Docket
No. 99-217. |
|
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| Monday, March 11 |
8:30 - 10:00 AM. The American
Enterprise Institute (AEI) will host a press breakfast on
the topic "Taxing Broadband". Harold Furchtgott-
Roth and other AEI scholars will speak. RSVP to Veronique
Rodman at (202) 862-4871 or vrodman
@aei.org. Location: AEI, 1150 17th Street, NW, 11th Floor
Conference Room.
8:30 AM - 12:00 NOON. The ITAA
and the CSIS
will co-host a conference titled "Managing Identity and
Authentication on the Internet". For more information,
contact Shannon Kellogg at skellogg
@itaa.org. See, ITAA
notice. Location: CSIS, B1 Conference Center, 1800 K
Street, NW.
Deadline to submit comments to the Copyright Office in
response to its Notice of Proposed Rulemaking on "the
requirements for giving copyright owners reasonable notice of
the use of their works for sound recordings under statutory
license and for how records of such use shall be kept and made
available to copyright owners." See, notice
in Federal Register. |
|
|
| Tuesday, March 12 |
9:30 AM. The U.S.
Court of Appeals (DCCir) will hear oral argument in USTA
v. FCC, No. 01-1085. Judges Ginsburg, Rogers and Garland
will preside. Location: 333 Constitution Ave. NW.
10:00 AM. The Senate
Appropriations Subcommittee's Subcommittee on Commerce,
Justice, State, and the Judiciary will hold a hearing on the
administration's proposed budget estimates for FY 2003 for the
Department of State.
Location: Room 138, Dirksen Building.
1:30 PM. The U.S. International Telecommunication Advisory
Committee (ITAC) will hold a meeting. See, notice
in Federal Register. Location: State Dept. |
|
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| Wednesday, March 13 |
| 10:00 AM. The Senate
Appropriations Subcommittee's Subcommittee on Commerce,
Justice, State, and the Judiciary will hold a hearing on the
administration's proposed budget estimates for FY 2003 for the
Department of Commerce.
Location: Room 116, Dirksen Building. |
|
|
| Bush Defends Appeals Court
Nominees |
3/6. President Bush met with Judge Charles
Pickering at the White House. Bush has nominated him
to be a judge of the U.S.
Court of Appeals (5thCir). Some Democrats oppose his
confirmation. Pickering has been a judge for the U.S. District Court
(SDMiss) since 1990. Bush stated at a photo opportunity
that "I nominated a very good man from Mississippi named
Charles Pickering to the appellate bench, and I expect him to
be confirmed by the United States Senate. I think the country
is tired of people playing politics all the time in
Washington. And I believe that they're holding this man's
nomination up for political purposes. It's not fair, and it's
not right." See, transcript.
3/6. President Bush gave a speech to the Hispanic Chamber of Commerce
in Washington DC at which he introduced and defended Miguel Estrada.
Estrada is a partner in the Washington DC office of the law
firm of Gibson Dunn &
Crutcher. President Bush stated, "I want to recognize
Miguel Estrada. Miguel. Miguel is a really bright attorney who
I've named to the U.S. -- nominated to the U.S. Court of Appeals,
D.C. Circuit. They're playing too much politics in the
United States Senate on our judge nominees. This man deserves
a hearing and he deserves a vote. This is a good, solid jurist
who ought to be on that bench. And I'm calling on the United
States Senate to move quickly on Miguel's nomination, so that
we can have a good, young Latino; smart, brilliant man
represent our nation." See, transcript.
See also, Estrada's
GDC bio. |
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