12/23. The Federal Communications Commission (FCC) released the text of its Third Report and Order and Second Further Notice of Proposed Rulemaking [78 pages in PDF] pertaining to the administration of the FCC's e-rate subsidy program for schools and libraries.

This item is FCC 03-323 in Docket No. 02-6. The FCC adopted this item at its December 17 meeting. It also issued a press release [PDF] describing this item on December 17.

Comments will be due 30 days after publication of a notice in the Federal Register; reply comments will be due 60 days after publication. The FCC has not yet published a notice of this NPRM in the Federal Register.

Much of the order and NPRM deal with the FCC's problems of waste, fraud and abuse in the administration of the program. The NPRM also seeks comment of further expanding the scope of activities eligible for subsidies.

The NPRM discusses the recent rural health clinic order. Last month the FCC adopted an order that expands the entities eligible for universal service subsidies for rural health clinics. That order also expanded the services that qualify for subsidies. See, story titled "FCC Expands Universal Service Support for Rural Clinics and Telemedicine" in TLJ Daily E-Mail Alert No. 779, November 14, 2003.

The schools and libraries program has separate statutory authority (47 U.S.C. § 254(h)(1)(B)) from the rural health clinics program (47 U.S.C. § 254(h)(1)(A)). The two programs are also separately administered.

The NPRM then addresses whether the FCC should change its definition of internet access to expand the services eligible for subsidies. It states that the FCC seeks "more focused comment on whether we should alter the definition of Internet access used for the schools and libraries program. Support for Internet access under the schools and libraries program is provided only for ``basic conduit access to the Internet.´´ Support in the Internet access category has not been provided for virtual private networks, nor has it been provided for Internet access services that enable communications through private networks." (Footnotes omitted.)

The NPRM also states that "We are concerned that the rule adopted six years ago may not adequately address the full ranges of features and functionalities in Internet access services that are available in the marketplace today. Moreover, we seek comment on whether amending the current definition of Internet access would simplify and streamline program administration. We also seek comment on how broadening the definition of Internet access (a Priority One service) will impact the availability of funds for Priority Two services. To the extent commenters argue that the definition of Internet access should differ for the schools and libraries program, and the rural health care program, they should provide specific arguments outlining the legal, policy, or technical reasons for that position."

The NPRM then requests comments on several issues pertaining to the provision of service over wide area networks.

12/24. The Federal Communications Commission (FCC) published a notice in the Federal Register that describes, and provides an effective date (February 23, 2004 for most sections), for its new rules expanding the entities eligible for universal service subsidies for rural health clinics, and expanding the services that qualify for subsidies. See, Federal Register, December 24, 2003, Vol. 68, No. 247, at Page 74492 - 74504. On November 13, 2003, the FCC adopted its "Order, Order on Reconsideration, and Further Notice of Proposed Rulemaking". This is FCC 03-288 in WC Docket No. 02-60. See also, story titled "FCC Expands Universal Service Support for Rural Clinics and Telemedicine" in TLJ Daily E-Mail Alert No. 779, November 14, 2003.

12/24. The Federal Communications Commission (FCC) published a notice in the Federal Register that describes, and provides comments deadlines for its proposed rules regarding universal service subsidies for rural health clinics. Comments are due by February 23, 2004. Reply comments are due by April 7, 2004. See, Federal Register, December 24, 2003, Vol. 68, No. 247, at Pages 74538 - 74541.

12/23. The Federal Communications Commission (FCC) published a notice in the Federal Register that describes, and provides an effective date (January 22, 2004) for rules that implement domestically various allocation decisions from several World Radiocommunication Conferences (WRC). The FCC adopted these rules changes on October 31, 2003, and released its Report and Order [99 pages in PDF] on November 4, 2003. This item is FCC 03-269 in ET Docket No. 02-305. See also, story titled "FCC Releases Report and Order Adopting Rules to Implement WRC Decisions" in TLJ Daily E-Mail Alert No. 772, November 5, 2003.

12/24. The Federal Communications Commission (FCC) filed its brief [46 pages in PDF] with the U.S. Court of Appeals (DCCir) in AT&T v. FCC. This is a petition for review of an order of the FCC pertaining to pay telephones. (See, Implementation of the Pay Telephone Reclassification and Compensation Provisions, Fifth Order on Reconsideration and Order on Remand.) The FCC also argues that the Court lacks jurisdiction on the argument that the order is unreviewable because it is an order denying reconsideration of a previous order. This case in AT&T Corporation v. FCC and USA, U.S. Court of Appeals for the District of Columbia, No. 03-1017. Oral argument is scheduled for Monday, February 23, 2004.

12/24. The Federal Communications Commission (FCC) extended the deadlines to submit comments in response to its Notice of Proposed Rulemaking [35 pages in PDF] regarding unlicensed devices. See, notice in the Federal Register, December 10, 2003, Vol. 68, No. 237, at Pages 68823 - 68831. The FCC adopted this NPRM on September 10, 2003. See, FCC release [PDF]. The FCC released the NPRM [35 pages in PDF] on September 17, 2003. This NPRM is FCC 03-223 in ET Docket No. 03-201. See also, stories titled "FCC Announces NPRM Regarding Unlicensed Devices" in TLJ Daily E-Mail Alert No. 739, September 15, 2003, and "FCC Announces Deadlines for Comments on Unlicensed Devices NPRM" in TLJ Daily E-Mail Alert No. 800, December 16, 2003. The FCC released an order [PDF] on December 24, 2003 extending the deadline for comments from January 9 to January 23, and extending the deadline for reply comments from January 26 to February 7.

12/29. The Federal Communications Commission (FCC) fined A-O Broadcasting, Inc., the former licensee of FM radio station KTMN, in Cloudcroft, New Mexico, $25,000 for violations of the radiofrequency radiation (RFR) exposure limits applicable to transmitters on towers, and for other rule violations. Specifically, the FCC released a Forefeiture Order for "willful and repeated  violation of Sections 1.1310, 11.35, 73.1125,  and 73.1400" of the FCC's rules. This item is FCC 03-332. The FCC also stated that this is the first fine for a violation of the RFR exposure limits. See, FCC release.

12/29. The Federal Communications Commission (FCC) issued a release [PDF] regarding number portability complaints. It states that "Since wireless phone number porting began on November 24, 2003, the FCC has received 2,394 informal complaints about wireless local number portability as of December 24."

12/30. Various federal agencies published a notice in Federal Register setting a deadline of March 29, 2004 for submitting comments regarding whether these agencies agencies should consider amending existing regulations that implement sections 502 and 503 of the Gramm Leach Bliley Act (GLB) to allow or require financial institutions to provide alternative types of privacy notices. The agencies are the Board of Governors of the Federal Reserve System, Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC), Federal Trade Commission (FTC), National Credit Union Administration, Office of the Comptroller of the Currency, Office of Thrift Supervision, and the Securities and Exchange Commission (SEC). See, Federal Register, December 30, 2003, Vol. 68, No. 249, at Pages 75164 - 75174.

12/29. The Internal Revenue Service (IRS) published a notice in the Federal Register stating that it "will provide the ability for IRS e-file program participants to use approved encryption methods for the 2005 and later filing seasons, beginning with the Acceptance Testing System (ATS) in late 2004. For the 2005 filing season, IRS intends to begin discontinuing support of non-encrypted transmissions whether by dedicated or dial-up links on the Public Switched Telephone Network (PSTN)." This is neither a notice of proposed rulemaking, nor a notice of inquiry. However, the IRS is accepting "questions or concerns" through January 31, 2004. See, Federal Register, December 29, 2003, Vol. 68, No. 248, at Pages 75022 - 75023.

12/23. Computer Associates International (CA) announced that "it has entered into a definitive agreement to sell its 90 percent ownership of its ACCPAC International, Inc. subsidiary to The Sage Group, plc (Sage). The total value of the transaction is $110 million. After transaction and other costs, CA will receive approximately $88 million in cash for its 90 percent share." Computer Associates added that "The sale is subject to regulatory approvals and is expected to close by the end of February." ACCPAC sells accounting and customer relationship management (CRM) software. See, CA release and Sage release.

12/23. The Securities and Exchange Commission (SEC) filed a civil complaint in U.S. District Court (SDNY) against Vivendi Universal, Jean-Marie Messier (its former CEO), and Guillaume Hannezo (its former CFO), alleging violation of the antifraud, books and records, internal controls and reporting provisions of the federal securities laws.

The SEC also announced that it simultaneously settled the action. Vivendi consented to pay a $50 Million civil penalty. Messier agreed "to relinquish his claims to a € 21 million severance package that he negotiated just before he resigned his positions at Vivendi". Also, Messier and Hannezo agreed to pay disgorgement and civil penalties totalling over $1 Million. See, SEC release.

The 109 paragraph complaint alleges that "Between approximately December 2000 and July 2002 ... Vivendi, under the direction of Messier, Hannezo and/or other executive officers, reported materially false and misleading information about its ``EBITDA´´ growth and liquidity in its SEC filings and public releases. Defendants and other executive officers of Vivendi also, directly or indirectly, were responsible for improper adjustments to Vivendi's ``EBITDA´´ in order to meet targets during two quarters in 2001, concealed various material commitments and obligations, and failed to disclose the full extent of Vivendi's involvement in a transaction to purchase shares of a Polish telecommunications company."

The SEC stated in its release that "The €21million payment, now valued at approximately $25 million (including interest), to which Messier is relinquishing his claim, has already been placed in an escrow account as a result of the Commission's successful litigation pursuant to Section 1103 of the Sarbanes-Oxley of 2002. On the Commission's motion, the District Court in New York ordered Vivendi to place those funds in escrow on Sept. 24, 2003. This action represents the first resolution of a Section 1103 action, and demonstrates the Commission's commitment to use this new authority for the benefit of shareholders."

12/23. The SCO Group announced the appointment of Daniel Campbell as Chairman of the Audit Committee. It also announced that Steve Cakebread, a member of the Board of Directors since July 2000, resigned effective December 22, 2003. See, SCO release.

The House is in adjournment.

The Senate is in adjournment. (It will convene on January 20, 2004.)

The Supreme Court is in recess. (It will return on January 12, 2004.)

Deadline to submit a paper or panel proposal for the National Institute of Standards and Technology's (NIST) Spam Technology Workshop to be held on February 27, 2004. For more information, contact Joan Hash at 301 975-3357. See, notice in the Federal Register, November 25, 2003, Vol. 68, No. 227, at Pages 66075 - 66076.

News Years Day.

The Federal Communications Commission's (FCC) new broadcast flag mandate takes effect. The FCC announced and released its Report and Order Further Notice of Proposed Rulemaking [72 pages in PDF] on November 4, 2003. This item is FCC 03-273 in MB Docket 02-230. See, notice in the Federal Register (December 3, 2003, Vol. 68, No. 232, at Pages 67599 - 67607) summarizing and stating the effective date of these rules. For more information, contact Rick Chessen rchessen@fcc.gov or Susan Mort at smort@fcc.gov or 202-418-7200. See also, stories titled "FCC Releases Broadcast Flag Rule" in TLJ Daily E-Mail Alert No. 772, November 5, 2003; and "FCC Publishes Notices Regarding Broadcast Flag Proceeding" in TLJ Daily E-Mail Alert No. 794, December 8, 2003.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Report and Order and Further Notice of Proposed Rulemaking [198 pages in PDF] in it proceeding titled "In the Matter of Promoting Efficient Use of Spectrum Through Elimination of Barriers to the Development of Secondary Markets". The FCC adopted this item on May 15, 2003, but did not release it until October 7, 2003. This is FCC 03-113 in WT Docket No. 00-230. See, TLJ story titled "FCC Adopts Order Allowing Some Secondary Leasing of Spectrum", May 15, 2003, and story titled "FCC Finally Releases R&O and FNPRM in Secondary Spectrum Markets Proceeding" in TLJ Daily E-Mail Alert No. 755, October 8, 2003.

Deadline to submit comments to the U.S. Patent and Trademark Office (USPTO) regarding its proposed rule changes regarding revision of patent term extension and patent term adjustment provisions related to decisions by the Board of Patent Appeals and Interferences. See, notice in the Federal Register, December 4, 2003, Vol. 68, No. 233, at Pages 67818 - 67821.

Deadline to submit comments to the Office of the U.S. Trade Representative (USTR) regarding the operation and effectiveness of, and the implementation of and compliance with, the World Trade Organization (WTO) Basic Telecommunications Agreement, other WTO agreements affecting market opportunities for U.S. telecommunications products and services, the telecommunications provisions of the North American Free Trade Agreement (NAFTA), Chile FTA and Singapore FTA, and other telecommunications trade agreements. See, notice in the Federal Register, December 8, 2003, Vol. 68, No. 235, at Pages 68444 - 68445.

12:15 PM. The Federal Communications Bar Association's (FCBA) Mass Media Practice Committee will hold a brown bag lunch titled "Meet the Trade Press". The speakers will be Bill McConnell (Broadcasting and Cable), Brooks Boliek (Hollywood Reporter), Mike Feazel (Communications Daily), Ted Hearn (Multichannel News), Susan Crabtree (Variety), and Leslie Stimson (Radio World). Location: 8th Floor Conference Room, Dow Lohnes & Albertson, 1200 New Hampshire Ave., NW.

Deadline to submit reply comments to the Federal Communications Commission (FCC) regarding its notice of proposed rulemaking (NPRM) regarding human exposure to radiofrequency (RF) energy. The FCC adopted this notice of proposed rulemaking on June 12, 2003, and released it on June 26, 2003. This is ET Docket No. 03-137. For more information, contact Robert Cleveland in the FCC's Office of Engineering and Technology at 202 418-2422 or robert.cleveland@fcc.gov. See, notice in the Federal Register, September 8, 2003, Vol. 68, No. 173, at Pages 52879 - 52889.