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April 24, 2003, 9:00 AM ET, Alert No. 648.
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FCC Announces NOI Regarding Broadband Over Powerlines

4/23. The Federal Communications Commission (FCC) adopted, but did not release, a Notice of Inquiry (NOI), regarding the use of powerlines to provide internet and other applications to users, and the use of powerlines within buildings to network equipment. The FCC issued only a press release, while the five FCC Commissioners all released short statements.

Michael PowellFCC Chairman Michael Powell (at right) wrote in his statement [PDF] that broadband over powerline (BPL) "has the potential to provide consumers with a ubiquitous third broadband pipe to the home. The development of multiple broadband capable platforms -- be it power lines, Wi-Fi, satellite, laser or licensed wireless -- will transform the competitive broadband landscape and reap dramatic windfalls for American consumers and the economy. Broadband over power lines is at the cutting edge of this dramatic digital migration that will continue to free applications (e.g., voice, data, and video) from the regulatory and technological shackles that have tied them to specific platforms (e.g., voice to copper and video to coaxial cable). While this migration is well under way, our policies must be dynamic and flexible to further -- rather than frustrate -- the transition." (Parentheses in original.)

See also, separate statement [PDF] of Commissioner Kathleen Abernathy, separate statement [PDF] of Commissioner Michael Copps, separate statement [PDF] of Commissioner Jonathan Adelstein, and separate statement [PDF] of Commissioner Kevin Martin.

The FCC stated in its release that the NOI address both access and in-house BPL. It states that "Access BPL uses medium voltage (1,000 to 40,000 volts) power lines to bring Internet and other broadband applications to homes and offices. In-House BPL uses existing electric utility wiring to network computers and printers, as well as smart appliances, within a building."

The FCC release continued that "existing rules for unlicensed carrier current systems, which couple radio frequency (RF) energy to the alternating current (AC) electrical wiring for the purpose of communications have been successful. However, these carrier current systems have operated with relatively limited communications capability on frequencies below 2 MHz, over a narrow spectrum bandwidth. Now, the availability of faster chip sets and the development of sophisticated modulation techniques have produced new digital power line designs that use multiple carriers, spread over a wide frequency range (e.g., 2 - 80 MHz) and are capable of high data rates."

The FCC stated in its release that it seeks public comments regarding "The current state of high speed BPL technology", "The potential interference effects, if any, on authorized spectrum users", "Test results from BPL experimental sites", "The appropriate measurement procedure for testing emission characteristics for all types of carrier current systems", "Changes that may be needed in Part 15 technical rules and the equipment approval process to foster the development of BPL and to ensure that interference is not caused to other services as a result of this technology".

Commissioner Copps listed more questions in his statement, including "How do we avoid cross-subsidy from a corporation’s regulated energy businesses to its communications business and resulting price hikes for energy customers in noncompetitive markets? What are the implications of power line communications to universal service? To rural communications? Are there pole attachment or rights-of-way issues we should address?"

Nancy Victory, Director of the National Telecommunications and Information Administration (NTIA), wrote a letter to the FCC in which she said that "This nascent technology holds great promise as an additional source of innovation and competition in the broadband marketplace. I encourage the Commission to move forward expeditiously with its inquiry. I also urge the Commission to promptly adopt any subsequent rule changes that may be appropriate to facilitate broadband PLC deployment, while ensuring that those rules prevent harmful radio frequency (RF) interference to other communications mediums."

Representatives of the incumbent local exchange carriers (ILECs) used this occasion to advocate less regulation of their sector. Walter McCormick, P/CEO of the U.S. Telecom Association (USTA), stated in a release that BPL "brings even more competition into the broadband market. Consumers have many options today for broadband service, including cable modems, wireless, satellite, and now -- power lines. While these platforms all operate virtually free from federal regulation, DSL providers, which serve a smaller portion of the market than other providers, are heavily burdened by outdated rules that are indifferent to the realities of the economic marketplace."

Herschel Abbott, BellSouth VP for Governmental Affairs, stated in a release that "the FCC should deregulate telco-provided digital subscriber loop (DSL) high-speed Internet service ..."

This is ET Docket No. 03-104. For more information, contact Anh Wride at awride@fcc.gov or 202 418-0577.

FCC Announces Order and NPRM Regarding E-Rate Subsidies

4/23. The Federal Communications Commission (FCC) adopted, but did not release, a Second Report and Order and Further Notice of Proposed Rulemaking regarding its e-rate subsidy program, which is plagued by fraud and abuse. The FCC issued two short press releases. See, press release [2 pages in PDF] regarding this order and NPRM, and press release [PDF] regarding the e-rate program.

The e-rate program, which the FCC created in 1997 under the rubric of the universal service provisions of the Communications Act (codified at 47 U.S.C. § 254), provides funding to schools and libraries for telecommunications services, internet access and internal wiring. The program is funding by a tax on phone companies, which in turn, pass the tax on to their customers.

The FCC stated in its release, for example, that persons convicted of criminal violations arising out of participation in the e-rate program will be debarred from participation in the program for three years.

The FCC also stated that it seeks comments on "1) the feasibility of an online computerized eligible services list for telecommunications services and Internet access, 2) procedures implementing the FCC’s decision to carry forward unused funds from the program in subsequent funding years, and 3) whether to expand the circumstances under which persons may be debarred from involvement in the program, including debarment for willful or repeated violators of FCC rules."

Commissioner Jonathan Adelstein wrote a separate statement [PDF] in which he stated that "today's Order is just a first step". He continued that "I am inclined to pursue debarment for those entities that have been found guilty of civil and criminal violations beyond those associated with the Schools and Libraries Program. Moreover, I believe that we should be able to debar providers, and applicants, in the event that USAC can establish a clear pattern of abuse based on objective FCC-crafted, USAC-implemented criteria."

Adelstein also addressed the e-rate's subsidy levels. He wrote that "I believe that it is important to address the possibility of changing the discount levels for this program. Many have suggested that the 90% discount level is too high because it does not require enough of an investment by the school or library. Reducing the discount levels can introduce more accountability, and better control the costs of the program."

The FCC's release also states that the FCC's order "Clarified that requests for duplicative services -- services that deliver the same functionality to the same people during the same period of time -- will not be funded."

Jonathan AdelsteinCommissioner Adelstein (at right) added that "When private companies make decisions about their telecommunications investments, particularly when it comes to investments in equipment, they generally do not expect to replace their equipment year after year. The current rules in the Schools and Libraries program allow schools and libraries to do just that. In this Order, we have reinforced the rule disallowing the funding of duplicative services because they impact the fair distribution of discounts to schools and libraries. Similarly, perhaps we should disallow annual requests for duplicative equipment, or networking, in order to ensure that the funds are more fairly and evenly distributed among requesting users. Perhaps in this program we should consider assigning a ``service life´´ to equipment. This program specific service life would require program participants to keep the equipment for a particular period of time rather than applying annually for discounts for duplicative equipment."

See also, separate statement [PDF] of Chairman Michael Powell, separate statement [PDF] of Commissioner Kathleen Abernathy, and separate statement [PDF] of Commissioner Michael Copps. This is CC Docket No. 02-6. For more information, contact Mark Seifert at 202 418-7400 or mseifert@fcc.gov.

FCC Announces Changes to Satellite Licensing System

4/23. The Federal Communications Commission (FCC) announced, but did not release, a First Report and Order and Further Notice of Proposed Rulemaking (IB Docket No. 02-34), and a First Report and Order (IB Docket No. 02-54), both of which pertain to satellite services. The FCC did issue a short press release [2 pages in PDF].

Chairman Michael Powell wrote in a separate statement [PDF] that "The satellite industry is a vital partner in the digital migration. The fundamental changes we have made today will enhance the ability of the market to encourage competition both within the satellite industry and across technologies with other types of facilities-based providers. Today satellites provide the key facilities-based competitor to cable television. Increasingly satellite services are also playing a key role in voice and data applications."

Michael CoppsCommissioner Michael Copps wrote a concurring statement [PDF] in which he said that "we are radically changing the satellite licensing system". He elaborated that "I am concerned about trafficking and arbitrage in FCC licenses. Congress has given the Commission the responsibility to administer and protect the public spectrum. This includes defending our rules against abuse by those who wish to profit by "flipping" licenses rather than offering satellite services to Americans. Today the Commission eliminates the Anti-Trafficking Rule. Many satellite companies believe that this will lead to increased speculation. At the same time the Commission creates a first-come-first-serve system that, for all its merits, many in the satellite industry believe will lead to a gold rush for licenses."

See also, separate statement [PDF] of Commissioner Kathleen Abernathy, and separate statement [PDF] of Commissioner Jonathan Adelstein.

People and Appointments

4/23. Patrick Von Bargen was named Managing Executive for Policy and Staff at the Securities and Exchange Commission (SEC). He will assist SEC Chairman William Donaldson with the promulgation and enforcement of policies, regulations, rules and procedures governing markets and issuers. He will also be Donaldson's primary liaison with the other Commissioners' offices, and conduct the management of the Chairman's personal office. Previously, he was the Executive Director of the National Center for Regional Innovation and Competitiveness and VP of the Council on Competitiveness. From 1999 to 2002, he was the founding Executive Director of the National Commission on Entrepreneurship. From 1989 to 1999, he was Chief of Staff for Sen. Jeff Bingaman (D-NM). Before that, he worked for the law firms of Morrison & Foerster and Hutchinson Black Hill & Cook. And before that, he worked for Sequoia Funds, a Menlo Park, California, venture capital fund. See, SEC release.

4/23. Peter Derby was named Managing Executive for Operations at the Securities and Exchange Commission (SEC). He will assist SEC Chairman William Donaldson with administrative, operational and management issues. He has been an elected member of the Board of Trustees of the Village of Irvington-on-Hudson, New York, since 2002. Before that, he participated in the founding of DialogBank, a private bank in Russia, and Troika Dialog, a Russian investment firm. Before going to Russia, he worked at National Westminster Bank and Chase Manhattan Bank in New York City. See, SEC release.

4/23. Laura Cox was named Managing Executive for External Affairs at the Securities and Exchange Commission (SEC). She will assist SEC Chairman William Donaldson with the oversight of the SEC's legislative affairs, public affairs, intergovernmental affairs and investor education efforts. She is currently a Deputy Assistant Secretary for Banking and Finance in the Office of Legislative Affairs at the Department of the Treasury. Before that, she was VP for Strategic Policy Communications, Government and Regulatory Affairs at Instinet. And before that, she worked on Capitol Hill, for Sen. Richard C. Shelby (R-AL), former Sen. Paul Coverdell (R-GA), and Rep. Charles Stenholm (D-TX). See, SEC release.

Thursday, April 24

9:00 AM. Day two of a two day meeting of the Department of Commerce's (DOC) Bureau of Industry and Standards' (BIS) Information Systems Technical Advisory Committee (ISTAC). The meeting will be partly open, and partly closed. The agenda includes discussion of ultrawideband technologies. See, notice in the April 3, 2003, Vol. 68, No. 64, at Page 16262. Location: DOC, Hoover Building, Room 3884, 14th Street between Pennsylvania and Constitution Avenues, NW.

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in OCC Acquis Inc v. FCC, No. 01-1143. Judges Ginsburg, Henderson and Randolph will preside. Location: 333 Constitution Ave. NW.

9:30 AM. The U.S. International Trade Commission (USITC) will hold a hearing in its economic effects investigation titled "U.S. Singapore Free Trade Agreement: Potential Economywide and Selected Sectoral Effects". This is Inv. No. TA-2104-6. Location: Main Hearing Room, USITC Building, 500 E Street SW.

12:00 NOON - 1:45 PM. The Legislation Committee of the DC Bar Association's Intellectual Property Law Section will host a luncheon program titled "Copyright Legislative Agenda". The speakers will be Robert Kasunic (Copyright Office), Arthur Sackler (International Intellectual Property Institute), Gigi Sohn (Public Knowledge), and Kate Colgan (National Writers Union). The price to attend ranges from $25 to $35. For more information, call 202 626-3463. Location: D.C. Bar Conference Center, 1250 H Street NW, B-1 Level.

12:00 NOON - 1:30 PM. DC Bar Association's Computer and Telecommunications Law and Law Office Management Sections will host a brown bag lunch titled "The E-Mauled: Managing Clients, Confidences, and Communications in the Electronic Age". The speaker will be Jeffrey Berger. The price to attend ranges from $15 to $20. Location: DC Bar Conference Center, 1250 H Street NW, B-1 Level.

2:00 - 4:15 PM. The law firm of McGuire Woods and the Richmond Bar Association will host a panel discussion titled "2003 Antitrust Forum". The panelists will include Deborah Majoras (Deputy Assistant Attorney General, Antitrust Division, Department of Justice), Joe Simons (Director of the Federal Trade Commission's Bureau of Competition), and James Donahue (Vice Chair of the National Association of Attorneys General, Multistate Antitrust Task Force). See, notice. The event is free. For more information, contact Doris Cole at 804 775-7741 or dcole@mcguirewoods.com. Location: Omni Richmond Hotel, 100 South 12th Street, Richmond, VA.

Friday, April 25

8:00 AM - 3:30 PM. The National Science Foundation's (NSF) Advisory Committee for Computer and Information Science and Engineering will hold a meeting. For more information, contact Gwen Blount at 703 292-8900. See, notice in the Federal Register, March 24, 2003, Vol. 68, No. 56, at Page 14264. Location: NSF, 4201 Wilson Blvd., Room 1235, Arlington, VA.

9:00 AM - 4:30 PM. The Federal Communications Commission's (FCC) Consumer Advisory Committee (CAC) will hold a meeting. See, FCC release [PDF] and notice in the Federal Register, April 4, 2003, Vol. 68, No. 65, at Pages 16513 - 16515. Location: FCC, Room TW-C305, 445 12th Street, SW.

9:00 - 10:30 AM. The Center for Progressive Regulation (CPR) will host a program titled "Democracy Dies Behind Closed Doors: The Homeland Security Act and Government Secrecy Initiatives". The speakers will include Rena Steinzor (University of Maryland School of Law), and David Vladeck (Georgetown University Law Center). A CPR notice states that "Credentialed congressional staff and credentialed media are invited to attend. A light breakfast will be served." Location: Room 2247, Rayburn Building.

10:00 AM. The 21st Century Intellectual Property Coalition will meet to discuss U.S. Patent and Trademark Office (USPTO) funding and fees. For more information, contact Dana Colarulli at 202 521-6717 or dana@ipo.org.

Monday April 28

9:00 AM - 5:00 PM. The Federal Communications Bar Association (FCBA) will host a continuing legal education (CLE) program titled "Enforcement". The price to attend ranges from $180 to $250. Location: Wiley Rein & Fielding, 1750 K St., 10th Floor, Washington DC.

12:00 NOON - 1:45 PM. The Trade Secrets Committee of the DC Bar Association's Intellectual Property Law Section will host a luncheon program titled "Enforcement and Protection of Intellectual Property Rights: Federal Prosecution in the Eastern District of Virginia". The speaker will be Jack Hanly, Chief of the Cybercrime Unit in the U.S. Attorneys Office in Alexandria, VA. The price to attend ranges from $25 to $35. For more information, call 202 626-3463. Location: D.C. Bar Conference Center, 1250 H Street NW, B-1 Level.

Day one of a two day convention hosted by the National Association of Regulatory Utility Commissioners (NARUC) and the National Exchange Carriers Association (NECA) titled "Second NARUC/NECA National Summit on Broadband Deployment: Accelerating the Transition". At 8:30 AM, Assistant Secretary of Commerce for Technology Policy Bruce Mehlman is scheduled to speak. At 12:15 PM, FCC Chairman Michael Powell is scheduled to deliver the luncheon keynote address. At 5:00 PM, Sen. Conrad Burns (R-MT) is scheduled to speak. See, agenda [PDF]. The price to attend ranges from $495 to $795. Location: Hyatt Regency Crystal City, 2729 Jefferson Davis Highway, Arlington, VA.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Further Notice of Proposed Rulemaking (FNPRM) regarding a proposed set of rules pertaining to "plug and play" cable compatibility. On December 19, 2002, fourteen consumer electronics companies and seven cable operators announced that they have entered into a Memorandum of Understanding (MOU) regarding a national plug and play standard between digital television (DTV) products and digital cable systems. See, document [78 pages in PDF] consisting of the MOU, proposed rules to be promulgated by the FCC, and a letter to FCC Chairman Michael Powell and others. See also, FCC release [MS Word] of January 7 announcing the FNPRM, and notice in the Federal Register, January 16, 2003, Vol. 68, No. 11, at Pages 2278 - 2283. This is CS Docket 97-80, and PP Docket 00-67. For more information, contact Susan Mort in the FCC's Media Bureau at 202 418-7200 or smort@fcc.gov.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding on how to use the reallocated Mobile Satellite Service (MSS) spectrum as well as other bands previously proposed for Advanced Wireless Service (AWS) use, the relocation of the Multipoint Distribution Service (MDS), and additional flexibility for the Unlicensed Personal Communications Service (UPCS) band spectrum. This is ET Docket 00-258 and IB Docket No. 99-81. See, notice in the Federal Register, March 13, 2003, Vol. 68, No. 49, at Pages 12015 - 12020.

Day one of a two day conference titled "2003 Great Lakes Symposium on VLSI". The theme of this year's conference "VLSI in the Nanometer Era". VLSI refers to very large scale integration in microprocessors. See, conference website. Location: Radisson Barcelo Hotel, 2121 P Street NW.

Tuesday, April 29

9:00 AM - 4:00 PM. The Federal Communications Commission's (FCC) E911 Coordination Initiative will hold a meeting. Location: FCC, Commission Meeting Room, 445 12th Street, SW.

12:30 PM. Tom Ridge, Secretary of the Homeland Security, will give a luncheon speech. For reservations call 202 662-7501. Location: National Press Club, 529 14th St. NW, 13th Floor.

Day two of a two day convention hosted by the National Association of Regulatory Utility Commissioners (NARUC) and the National Exchange Carriers Association (NECA) titled "Second NARUC/NECA National Summit on Broadband Deployment: Accelerating the Transition". At 3:30 - 5:00 PM, FCC Commissioners Kathleen Abernathy, Jonathan Adelstein, Michael Copps, and Kevin Martin are scheduled to participate in a roundtable discussion. See, agenda [PDF]. The price to attend ranges from $495 to $795. Location: Hyatt Regency Crystal City, 2729 Jefferson Davis Highway, Arlington, VA.

Day one of a two day convention of the Association for Local Telecommunications Services (ALTS). See, agenda. Location: Hyatt Regency Crystal City, Arlington, VA.

Day two of a two day convention hosted by the National Association of Regulatory Utility Commissioners (NARUC) and the National Exchange Carriers Association (NECA) titled "Second NARUC/NECA National Summit on Broadband Deployment: Accelerating the Transition". See, agenda. The price to attend ranges from $495 to $795. Location: Hyatt Regency Crystal City, 2729 Jefferson Davis Highway, Arlington, VA.

Day two of a two day conference titled "2003 Great Lakes Symposium on VLSI". The theme of this year's conference "VLSI in the Nanometer Era". VLSI refers to very large scale integration in microprocessors. See, conference website. Location: Radisson Barcelo Hotel, 2121 P Street NW.

Wednesday, April 30

Last day of scheduled oral arguments before the Supreme Court for the October 2002 term.

RESCHEDULED. 9:30 AM. The Copyright Office (CO) will hold the third of four hearings in Washington DC regarding the exemption of certain classes of works from the Digital Millennium Copyright Act's (DMCA) prohibition against circumvention of technological measures that control access to copyrighted works. See, notice in the Federal Register, March 20, 2003, Vol. 68, No. 54, at Pages 13652 - 13653. See also, CO web page on rulemakings on anticircumvention, the relevant statutory sections at 17 U.S.C. §§ 2101-2105, and story titled "Copyright Office to Hold Hearings on DMCA Anti Circumvention Exemptions", TLJ Daily E-Mail Alert No. 628, March 21, 2003.

Tentative. The House Science Committee will meet to mark up HR 766, the Nanotechnology Research and Development Act of 2003.

The FCC will hold Auction No. 46. This is the 1670-1675 MHz band auction. It had previously been scheduled for October 30, 2002. See, notice of postponement in Federal Register, October 10, 2002, Vol. 67, No. 197, at Pages 63095 - 63096.

Day one of a three day conference hosted by the Federal Trade Commission (FTC) titled "Spam Forum". The event will address the proliferation of unsolicited commercial e-mail and explore the technical, legal, and financial issues associated with it. For more information, contact Brian Huseman at 202 326-3320 or Lisa Tobin 202 326-3218. See, agenda and notice in the Federal Register, February 10, 2003, Vol. 68, No. 27, at Pages 6747-6748. Location: FTC, 601 New Jersey Ave., NW.

Day two of a two day convention of the Association for Local Telecommunications Services (ALTS). See, agenda. Location: Hyatt Regency Crystal City, Arlington, VA.

More News

4/23. The Copyright Office (CO) published a notice in the Federal Register that revises the schedule for its hearings regarding the exemption of certain classes of works from the Digital Millennium Copyright Act's (DMCA) prohibition against circumvention of technological measures that control access to copyrighted works. See, original notice in the Federal Register, March 20, 2003, Vol. 68, No. 54, at Pages 13652 - 13653, and revised notice in the Federal Register, April 23, 2003, Vol. 68, No. 78, at Pages 19966 - 19967 (changing the dates, times and locations). See also, CO web page on rulemakings on anticircumvention, the relevant statutory sections at 17 U.S.C. §§ 2101-2105, and story titled "Copyright Office to Hold Hearings on DMCA Anti Circumvention Exemptions", TLJ Daily E-Mail Alert No. 628, March 21, 2003. There will be three hearings at the Postal Rate Commission, 1333 H Street, NW., Third Floor on May 1 at 2:00 PM, May 2 at 9:30 AM, and May 9 at 9:30 AM. There will also be one hearing at the UCLA School of Law in Los Angeles, California on May 14-15 at 9:00 AM.

4/21. The Universal Music Group and EMI Recorded Music filed a complaint in U.S. District Court (CDCal) against Hummer Winblad Venture Partners. Hummer Winblad is a venture capital firm focused exclusively on software. The dispute arises out of Hummer Winblad's financing of Napster, the bankrupt peer to peer file copying company, which infringed the copyrights of Universal and EMI.

4/18. The Department of Commerce's (DOC) International Trade Administration (ITA) released a report titled  "ExportIT China", which is also subtitled "Telecommunications and Information Technology Market Opportunities for Small and Medium-Sized Enterprises". See also, ITA release.

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