Details - Competitive Carriers Association

The Washington
Monitor
Volume XVI, No. 8
June 30, 2008
Part 1: Update on Activities in Congress by Capitol Decisions, Inc.:
HOUSE HOLDS HEARING ON USF
The Energy and Commerce Subcommittee on Telecom and the Internet held a
hearing on USF today that focused mostly on the need to improve access to broadband
services to revolutionize the educational and healthcare systems of America.
The Chairman of the subcommittee, Ed Markey (D-MA), urged in his opening
remarks that the debate at the hearing should not focus on who will receive a “divvied-up
pool of funds” but rather on whether the program was meeting its goals of providing
universal service. The witness list mirrored that objective in that no carriers or carrier
organizations were invited to participate. Witnesses included, Rey Ramsey, Chief
Executive Officer, One Economy, George Lucas, Chairman, The George Lucas
Educational Foundation, Charles Sullivan, Executive Director, International C.U.R.E.
(Citizens United for Rehabilitation of Errants), Jane Smith Patterson, Executive Director,
The E-NC Authority and Randolph May, The Free State Foundation.
The Chairman of the full committee, John Dingell (DMI), made a brief
appearance, calling the USF “a fundamental American value [that is] about consumers,
not carriers.” He also stated support should be properly targeted to ensure fairness.
Randy May of the Free State Foundation, a free market oriented think tank that
limits government involvement, stated USF reform should include four elements: cap the
entire fund, permit competition to control fund growth, target USF support to unserved
areas and fund the program through appropriations from the general treasury.
Congressmen Bart Stupak (D-MI) and Chip Pickering (R-MS) echoed support for May’s
suggestion to target funds.
Another witness that echoed support for the wireless industry was George Lucas
of Star Wars fame. Although he presented testimony on the E-rate program, he took time
to say that wireless technology was the “new printing press of the future.” He expressed
dismay at the lack wireless access in remote areas of Wyoming when “in Africa, they’re
using cell phones to do their school work.” While he acknowledged it was Congress’ job
to come up with the solution for USF reform, he criticized the inefficiencies of the
current system saying that instead of collecting money to then disburse it for build-out in

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remote areas the government should assign spectrum for free use for schools and
libraries.
Jane Patterson of E-NC, a state based broadband deployment program, supported
continued USF funding to lay fiber. Rey Ramsey focused his comments on the need to
expand broadband services to low income and unserved populations while Charlie
Sullivan of C.U.R.E. called for an end to commissions paid on phone calls placed by
prisoners.
Chairman Markey concluded the hearing with no further announcements.
Part 2: Update on FCC Developments by RCA Counsel:
FCC PROPOSES RULE CHANGES FOR ADVANCED WIRELESS SERVICES
(AWS) SPECTRUM IN THE 1.9 AND 2.1 GHz BANDS
AWS-3 Band Licensee Would Be Required to Support
Public Access to Free, High-Speed Broadband Internet Services
The Commission seeks comment on proposed rules for the Advanced Wireless
Services (AWS) spectrum in the 1915-1920 MHz, 1995-2000 MHz, and 2155-2180 MHz
bands. In 2004, the FCC sought comment on service rules for the 1915-1920 MHz, 1995-
2000 MHz, 2020-2025 MHz, and 2175-2180 MHz bands (“AWS-2”), and in 2007, the FCC
sought comment on service rules for the 2155-2175 MHz band (“AWS-3”). To supplement
comments received in response to these earlier notices, comments are requested on specific
service rules for these spectrum bands.
Specifically, proposed rules for the 2155-2180 MHz band (AWS-3 band) include:
‣ Combine the 2155-2175 MHz band with the 2175-2180 MHz band in order to
create a 25 megahertz block of spectrum.
‣ Permit downlink and uplink transmissions throughout the entire 2155-2180 MHz
band.
‣ Adopt a single nationwide license for the 2155-2180 MHz band.
‣ Adopt open eligibility for the 2155-2180 MHz band.
‣ Require the licensee to provide free, two-way broadband Internet service
including:
o engineered data rates of at least 768 kbps downstream using up to 25
percent of the licensee’s wireless network capacity.

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o an “always on” network-based filtering mechanism.
‣ Require the licensee to provide for open devices and open applications for its
premium service and open devices for its free service.
‣ Provide an initial license term of ten years and subsequent renewal terms of ten
years.
‣ Require the licensee to provide signal coverage and offer service to: 1) at least 50
percent of the total population of the nation within four years of commencement
of the license term and 2) at least 95 percent of the total population of the nation
at the end of the 10-year license term.
‣ Allow licensees to disaggregate, partition, and lease the spectrum.
‣ Provide that mutually exclusive applications should be resolved through
competitive bidding.
‣ Require AWS-3 mobiles to attenuate out-of-band emissions (OOBE) by 60 +
10log (P) dB outside of the AWS-3 band, and establish a power limit for AWS-3
mobile devices of 23 dBm/MHz equivalent isotropically radiated power (EIRP).
‣ Require an OOBE limit of 43 + 10 log (P) dB for AWS-3 base and fixed
downlink stations and a power limit of 1640 watts peak EIRP in non-rural areas
and 3280 watts peak EIRP in rural areas.
Proposed rules for the 1915-1920 MHz and 1995-2000 MHz bands (H Block)
include:
‣ License the H Block using exclusive geographic area licensing on a Basic
Trading Area (BTA) basis.
‣ Adopt open eligibility for the H Block.
‣ Provide an initial license term of ten years and subsequent renewal terms of ten
years.
‣ Require an H Block licensee to provide signal coverage and offer service to: 1) at
least 35 percent of the population in each licensed area within four years and 2)
at least 70 percent of the population in each licensed area at the end of the license
term.
‣ Allow licensees to disaggregate, partition, and lease the spectrum.
‣ Provide that mutually exclusive applications should be resolved through
competitive bidding.
‣ Require H Block licensees in the 1915-1920 MHz band to pay a pro rata share of
expenses previously incurred by UTAM Inc. in clearing that band.
‣ Adopt both relocation requirements for H Block entrants in the 1995-2000 MHz
band and procedures for cost-sharing among other new entrants in the Broadcast
Auxiliary Service band, including Sprint Nextel and Mobile Satellite Service
entrants.

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‣ Prohibit base and fixed transmission in the 1915-1920 MHz band.
‣ Require mobiles at 1915-1920 MHz to attenuate OOBE by 90 + 10log P dB
within the PCS band (1930-1990 MHz band), and establish a power limit for
mobiles of 23 dBm/MHz EIRP.
‣ Prohibit mobile transmission in the 1995-2000 MHz band.
‣ Adopt an OOBE limit of 43 + 10 log (P) dB for base and fixed stations at 1995-
2000 MHz and a power limit of 1640 watts peak EIRP in non-rural areas and
3280 watts peak EIRP in rural areas.
Comments will be due fourteen days following publication in the Federal Register,
with reply comments due twenty-one days following publication in the Federal Register.
Further Notice of Proposed Rulemaking, WT Docket Nos. 07-195 and 04-356, FCC 08-158,
released June 20, 2008.
FCC PROVIDES PUBLIC NOTICE OF THE
PROPOSED ACQUISITION OF ALLTEL BY VERIZON WIRELESS
The FCC has issued a Public Notice of applications for consent to the acquisition of
ALLTEL by Verizon Wireless. When the FCC and Justice Department eventually act on the
proposal the parties may be subject to certain terms and conditions, and will likely be
required to divest certain spectrum licenses and business units where the agencies find that
competition would be severely impacted by the merger.
Interested parties may file petitions to deny no later than July 25, 2008. Issues that
could be raised include foreign ownership by Vodafone Group, Plc (an English public
limited company), spectrum aggregation in certain markets, automatic voice/data roaming
agreements where networks are technically compatible, and exclusive agreements for
handsets. Oppositions to such pleadings must be filed no later than August 4, 2008. Replies
to such pleadings must be filed no later than August 11, 2008. Public Notice, DA 08-1481,
released June 25, 2008.
RCA URGES FCC TO MAINTAIN NATIONWIDE 700 MHz D BLOCK LICENSE
AND LIMIT ELIGIBILITY OF BIDDERS
RCA submitted comments in support of the establishment of a mandatory
public/private partnership in the upper portions of the 698-806 MHz band (D-Block) as the
best means to facilitate the construction and deployment of a much-needed public safety
network. A nationwide D-Block license will simplify the Commission’s oversight
obligations that follow grant of the spectrum license and will allow the winning D-Block
licensee and the Public Safety Spectrum Trust (“PSST”) to focus their collective efforts on
ensuring the timely completion of an advanced telecommunications network that serves the
commercial interests of the D-Block licensee and the nation’s public safety and homeland
security needs.

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RCA encouraged the Commission to limit D-Block bidding eligibility to entities that
do not already have nationwide or near-nationwide 700 MHz spectrum holdings. In the
recently concluded 700 MHz auction, Verizon Wireless and AT&T accounted for about 84%
of the approximately $19 billion in net winning bids. Sound spectrum policy dictates that the
Commission make this final allotment of nationwide 700 MHz spectrum available only to
entities other than Verizon Wireless and AT&T. A third nationwide carrier on 700 MHz will
offer a needed choice for the public and will increase from two to three the number of
potential roaming partners for small and mid-sized rural wireless carriers that depend on
roaming agreements to serve customers who travel outside of their regional rural wireless
carrier networks.
RCA OPPOSES FCC PROPOSAL TO EXPAND
ETC DTV NOTIFICATION REQUIREMENTS
RCA submitted comments in opposition to the FCC’s proposal to require Eligible
Telecommunications Carriers (“ETCs”) to provide to all of their subscribers monthly notices
about the digital television (“DTV”) transition. ETCs already provide required monthly DTV
notices to Lifeline and Link-Up customers. RCA’s position is that the Commission has failed
to adequately justify the need to expand the recipient pool of the ETC DTV transition
notification, and that the costs to provide monthly notices to all subscribers would far
outweigh the benefits. Lifeline/Link-Up compliance costs for multiple RCA members
already range from $300,000 to more than $1 million, including all printing, mailing and call
center costs. Expanding the recipient pool for DTV transition notices to all of an ETC’s
customers would cost exponentially more.
Additional costs are incurred in handling the volume of calls resulting from customer
confusion generated by the monthly DTV transition notices. Customers of RCA member
carriers call member customer care departments asking whether their cell phone is going to
be affected by the DTV transition, whether the carrier is going to somehow turn off their
television, and why their wireless carrier is providing them with any information about the
DTV transition. Customers call their carrier despite the fact that the DTV transition message
instructs customers to contact www.DTV.Gov for information about the DTV transition, or
www.dtv2009.gov or 1-888-DTV-2009 for information about subsidized coupons for digitalto-analog
converter boxes.
NEW 700 MHZ BAND LICENSEES ARE REMINDED
OF DTV CONSUMER EDUCATION OUTREACH
QUARTERLY REPORTING REQUIREMENTS
The Wireless Telecommunications Bureau released a Public Notice reminding 700
MHz Band licensees holding license authorizations obtained in Auction 73 that they must
file quarterly reports indicating whether outreach efforts have been taken to educate
consumers about the transition from analog broadcast television service to digital broadcast
television (DTV), and detailing what specific efforts, if any, were undertaken. The

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requirement is set forth in Commission rule section 27.20. Because the DTV transition must
be completed by February 17, 2009, the quarterly reporting requirement extends only
through the first quarter of 2009 (the last quarter that would cover the DTV transition).
The first report that must be filed by a licensee is the quarterly report of the first
quarter in which that licensee obtains a 700 MHz license authorization that was sold in
Auction 73. The quarterly reports are due no later than the following dates:
• 2 nd Quarter 2008 (covering April-June) – Due no later than July 10, 2008
• 3 rd Quarter 2008 (covering July-Sept.) – Due no later than October 10, 2008
• 4 th Quarter 2008 (covering Oct.-Dec.) – Due no later than January 12, 2009
• 1 st Quarter 2009 (covering Jan.-March) – Due no later than April 10, 2009
If the license is issued prior to July 1, 2008, the first report must be filed no later than
July 10, 2008. The reporting requirements terminate once the licensee has filed its quarterly
report covering the first quarter of 2009.
Specifically, each 700 MHz licensee must file a quarterly report with the Commission
indicating whether, in the previous quarter, it has taken any outreach efforts to educate
consumers about the DTV transition and, if so, what specific efforts were undertaken. Each
licensee is obligated to file a quarterly report regardless of whether it has in fact taken any
outreach efforts during the previous quarter or provided 700 MHz service.
Public Notice, MB Docket No. 07-148, DA 08-1521, released June 26, 2008.
FCC ORDERS VERIZON TO CEASE AND DESIST
RETENTION MARKETING DURING NUMBER PORTING
INTIATED BY COMPETING CARRIER REQUESTS
The FCC has rejected the Enforcement Bureau’s April 11, 2008 recommendation and
found that Verizon violates section 222(b) of the Communications Act by using, for
customer retention marketing purposes, proprietary information of other carriers that it
receives in the local number porting process. Verizon was ordered to immediately cease and
desist from such unlawful conduct. It is reported in the trade press that Verizon will appeal
the decision.
While the number porting process was pending, Verizon was contacting porting out
customers and encouraging them to remain with Verizon, offering price incentives such as
discounts and American Express reward cards. If successful in persuading a customer to
cancel his or her order with the new service provider, Verizon canceled its internal porting
service order and issued a “jeopardy notice” to the provider that submitted the port request.
Verizon also put the new provider’s port request “into conflict” by sending a conflict code to
the Number Portability Administration Center. If the new service provider could persuade
the customer to switch after all, it could either seek resolution of the conflict code or, what is

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much more common, submit a new Local Service Request to Verizon.
Section 222(b) provides that “[a] telecommunications carrier that receives or obtains
proprietary information from another carrier for purposes of providing any
telecommunications service shall use such information only for such purpose, and shall not
use such information for its own marketing efforts.” The Commission found that a
telecommunications carrier violates section 222(b) when it (a) receives or obtains proprietary
information; (b) from another carrier; (c) for purposes of providing any telecommunications
service; and (d) fails to use such information “only” for such purpose, or uses the information
“for its own marketing efforts.” Verizon’s retention marketing program thus was found to
violate section 222(b) of the Act.
The proprietary information obtained by Verizon consisted of knowledge that a
competing carrier had persuaded a particular Verizon customer to switch to a particular
competing carrier’s voice service on a particular date. This information cannot be used by
Verizon to engage in retention marketing.
The Commission found that when a competitive carrier submits a Local Service
Request (LSR) to Verizon, Verizon receives the LSR “for purposes of providing any
telecommunications service” within the meaning of section 222(b). That conclusion,
combined with the conclusion reached above about the LSR’s proprietary nature, means that
section 222(b) forbids Verizon from using the information in the LSR for its own marketing
efforts.
The Commission disagreed with the argument that Local Number Portability (LNP) is
not a telecommunications service because it does not constitute transmission, and because it
is not offered for a fee. Rather, number portability is a wholesale input that is a necessary
component of a retail telecommunications service. Services or functions that are “incidental
or adjunct to common carrier transmission service” – i.e., they are “an integral part of, or
inseparable from, transmission of communications” – should be classified as
telecommunications services. LNP similarly constitutes such an “adjunct to basic” service.
As a result, Verizon’s provision of LNP was found to be a telecommunications service for
purposes of section 222(b).
Verizon lost the argument that affiliates of complainants Bright House Networks,
LLC, Comcast Corporation and Time Warner Cable, Inc. do not provide telecommunications
services. The Commission found that the companies are telecommunications carriers and
provide telecommunications services for purposes of the privacy protections provided by
Section 222(b). This does not mean that they are “telecommunications carriers” for purposes
of all other provisions of the Act. Those determinations are left for another day.
Commission Chairman Martin disagreed with the holding that the complainants are
“telecommunications carriers” for one purpose and not for another, such as complying with
the obligations of “telecommunications carriers.” He expressed concern that the “decision
promotes regulatory arbitrage and is outcome driven; it could thwart competition, harm rural
America, and frustrate regulatory parity.” Noting that cable companies engage in aggressive

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customer retention marketing to keep their video customers from switching providers,
Chairman Martin was disappointed that the Commission “would prohibit these practices,
which promote competition and benefit consumers,” by only one class of companies.
Chairman Martin also expressed fear that the decision will negatively impact rural carriers
and customers in rural America, observing that small rural local exchange carriers may be
forced to interconnect with entities that have no intention of providing telecommunications
to the public or assuming the obligations of a “telecommunications carrier.”
Memorandum Opinion and Order, File No. EB 08-MD-002, DA 08-159, released
June 23, 2008.
FCC RULES AMENDED TO REQUIRE TELEMARKETERS
TO HONOR DO-NOT-CALL LIST REGISTRATIONS INDEFINITELY
The FCC has amended its rules to require telemarketers to honor registrations with
the National Do-Not-Call Registry indefinitely. The previous rules provided that registrations
would expire after five years.
The FCC deemed the action consistent with Congress’s mandate in the Do-Not-Call
Improvement Act of 2007, which prohibits the removal of numbers from the Registry unless
the consumer cancels the registration or the number has been disconnected and reassigned or
is otherwise invalid. The Federal Trade Commission has committed to retain numbers on the
Registry indefinitely.
The rule change minimizes the inconvenience to consumers of having to re-register
their phone numbers every five years and furthers the goal of the Registry to protect
consumer privacy rights.
The FCC encourages telephone companies to convey information on disconnected
and reassigned numbers to the FTC, the administrator of the Registry, in a timely and
accurate manner. The Commission will continue to coordinate with the FTC on additional
ways to improve the Registry’s accuracy.
Report and Order, CG Docket No. 02-278, FCC 08-147, released June 17, 2008.
FCC RELEASES DRAFT STRATEGIC PLAN FOR PUBLIC REVIEW
The FCC is revising its Strategic Plan for 2009-2014 in compliance with the
requirements of the Government Performance and Results Act of 1993. The revised draft
Strategic Plan is a "work-in-progress" available for review at
http://www.fcc.gov/omd/strategicplan/.
The FCC’s strategic goals for spectrum include the following:
● Ensure that the Nation’s spectrum is used efficiently and effectively.

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● Advocate U.S. spectrum interests in the international arena.
● Enforce the Commission’s spectrum regulations and policies.
To do this, the Commission proposes to:
● Develop, advocate, and implement flexible, market-oriented spectrum
allocation and assignment policies.
● Develop policies that promote efficient and effective use of spectrum.
● Conduct effective and timely licensing activities, relying on advanced
electronic filing and electronic information access systems.
● Develop and implement policies that delineate the rights and
responsibilities of both licensed and unlicensed spectrum users, particularly
with respect to harmful interference.
● Vigorously enforce its spectrum regulations and policies.
● Serve as a dependable information source for Congress, spectrum users,
and regulators around the world on the complex issues inherent in using our
spectrum resources.
The Strategic Plan also sets forth performance goals in the areas of Competition,
Broadband, Media, Public Safety and Homeland Security and Modernization of the FCC.
The public is welcome to send comments to walter.boswell@fcc.gov no later than
July 24, 2008. Public Notice, DA 08-1472, released June 24, 2008.
FCC REMINDS COMMUNICATIONS PROVIDERS
HOW TO CONTACT AGENCY FOR EMERGENCY ASSITANCE
Due to the severe flooding in the Midwest, communications providers may wish to
maintain contact information to obtain emergency Special Temporary Authorizations
(STAs). Providers needing emergency STA authorizations or needing to consult FCC
bureaus and offices about recovery efforts during the weekend or after hours can call the
FCC’s Communications Center, which is open 24 hours a day, at (202) 418-1122.
Contact information during normal working hours and more comprehensive
information on receiving STAs can obtained at http://www.fcc.gov/pshs/services/sta.html.
$600 MILLION OF UNUSED FEDERAL UNIVERSAL SERVICE FUNDS
WILL BE DISBURSED TO SCHOOLS AND LIBRARIES

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The FCC’s Wireline Competition Bureau announced that $600 million in unused
federal universal service funds for schools and libraries will be carried forward to increase
disbursements to schools and libraries in Funding Year 2008 in excess of the annual cap. The
2008 funding year for purposes of the schools and libraries cap is July 1, 2008 to June 30,
2009. Commission rules require that “all funds that are collected and that are unused from
prior years shall be available for use in the next full funding year of the schools and libraries
mechanism in accordance with the public interest and notwithstanding the annual cap.”
Public Notice, CC Docket No. 02-6, DA 08-1470, released June 23, 2008.
The Washington Monitor is published monthly by the Rural Cellular Association (RCA). Contributors to
The Washington Monitor include RCA’s counsel, David Nace and Pamela Gist of Lukas, Nace, Gutierrez &
Sachs, Chtd. (202) 857-3500, RCA’s legislative consultants, Carol McDaid and Gwen O’Brien of Capitol
Decisions, Inc. (202-737-8167) and RCA’s technical consultant, Art Prest (301-983-3072).
Disclaimer: RCA members should determine the applicability of all Federal Communications Commission
rules and policies, as well as other information contained herein, to their own operations and consult their
own counsel as may be appropriate. RCA, its counsel and its consultants assume no responsibility for errors
or omissions in The Washington Monitor.
© 2008 Rural Cellular Association