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Volume 67, October 2007 |
Editor: Karen Pearl |
Click on the following headlines to jump to
that article, or scroll down to review the entire newsletter.
Member Companies are invited to submit articles of industry
interest to the Nevada Telecommunications Association for inclusion in our
monthly newsletter. If you would like to submit a "white paper" or other
news of interest, please
CONTACT US. The NTA reserves
the right to include, edit or refuse any article for submission.
Convention News
MARK YOUR CALENDARS FOR 2008!
August 20-22, 2008, Harvey's Lake Tahoe
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Embarq Announces New Gov't Affairs Manager
Brian McAnallen will be assuming the Government Affairs Mgr position as of
Monday, Oct. 1, replacing Margaret McMillan. Mr. McAnallen is from
Scottsdale, AZ and most recently was the Director of Gov't Relations for
Scottsdale Healthcare, the largest employer in Scottsdale. McAnallen has
extensive federal, state and local lobbying and government affairs
experience and lobbied at the NV state legislature several years ago when
he was Director of Government Relations for the American Cancer Society.
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Innovative Systems Demos New IPTV
Middleware Solution
Telco representatives view new Middleware solution
at Innovative Systems Annual User Meeting.
September 5, 2007 - Innovative Systems, LLC, debuted an early
version of its new IPTV Middleware solution in a live demo for nearly two
hundred of its customers at their annual User Meeting last week. Innovative
Systems customers from as far away as Alaska were able to see the progress on
this new turn-key Middleware offering that has entered alpha testing stage
Ryan Tupper, Voice & Video Products Director for Innovative
Systems, demonstrated the functionality of the electronic program guide as well
as some of the behind the scenes set-up components. System set-up is quite
simple, especially for technical staff already familiar with Innovative’s
popular Application Peripheral (AP) platform. The IPTV Middleware solution will
be delivered on Innovative’s next generation platform called APMAX.
“A real value to companies will be the ability to provide
both traditional telephony services as well as middleware from the same hardware
platform. In the future, we see companies having the ability to seamlessly blend
telephony and video services using our products,” says Tupper.
Tupper adds, “In a short period of time, our team has made
huge strides in development. Having a product to demo to clients speaks volumes
about the quality of our partners and the ability of our staff who have worked
so diligently to take a concept and turn it into reality.”
During the Q&A immediately following the demo, the first
question asked was when the Middleware solution would be ready for market.
Tupper’s response, “When we feel it’s functioning to our high level of
standards.”
About Innovative Systems:
Innovative Systems is a dominant provider of Enhanced Service Platforms and
Operational Support Systems (OSS) for the Tier 3 telecommunications industry.
Respected customer support, carrier grade products and an industry leading
vision are the foundation of our company. The Innovative Systems Application
Peripheral (AP) is the most feature rich and widely deployed platform in the
industry with over 750 systems in service interfacing with all switch types. The
eLation OSS solutions have already proven to be a market success with sixty plus
customers in the first 30 months. Future offerings include the APMAX IMS
Application Server and IPTV Middleware. For more information, please contact
your Innovative Systems sales representative, Innovative Systems office or visit
www.innovsys.com.
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FTC Seeks More Telecom Issue Authority
(Source:
National Journal's Insider Report, Michael Posner 9-12-07)
Federal Trade Commission Chairwoman Deborah Platt Majoras
pressed Congress to give it more power to root out unfair and deceptive
practices in the mushrooming telecommunications industry.
She asked a Senate Commerce subcommittee to approve
legislation that would allow the FTC to regulate telecommunications common
carriers and subject them to rules against unfair and deceptive practices.
"This exemption dates from a period when telecommunications were provided
by government-authorized highly regulated monopolies," Majoras said. Her
proposal found an ally in Senate Commerce Interstate Commerce Subcommittee
Chairman Byron Dorgan, D-N.D., who said he wanted the
full committee to remove the exemption as part of an FTC authorization
bill and send it to the Senate "very soon." The agency's reauthorization
has not been extended since 1996.
"Technological advances have blurred the traditional
boundaries between telecommunications, entertainment and information,"
Majoras said. "As the telecommunications and Internet industries continue
to converge, the common carrier exemption is likely to frustrate the FTC's
ability to stop deceptive and unfair acts and practices and unfair methods
of competition with respect to interconnected communications, information,
entertainment and payment services."
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OPASTCO Technical Committee White Paper on
VoIP and SIP
The OPASTCO Technical Committee has published a white paper
entitled “TDM to IP Migration: The Gaining Popularity of Voice over Internet
Protocol (VoIP).” The paper includes explanations of how VoIP benefits from the
use of session initiation protocol (SIP) session management, how VoIP and IP
Multimedia Subsystem (IMS) provide added value and utility across multiple
platforms, and ways that VoIP can improve revenues and provide cost savings. To
view the white paper, visit
http://www.opastco.org/members/gateway/docs/OTC_Technical_Paper_-_The_Gaining_Popularity_of_VoIP.pdf.
If you need access to the OPASTCO Members’ Only Website, please contact Caroline
O’Reilly at 202/659-5990 or
cao@opastco.org.
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FCC NEWS
FCC Proposes 11.0% USF Contribution
Factor for 4th Qtr. 2007
(Source:
BloostonLaw 9-19-07) The FCC has proposed setting the Universal
Service Fund (USF) contribution factor at 0.110 or 11.0% for the
fourth quarter of 2007. This is down slightly from the 11.3% figure for the
third quarter, and the 11.7% for the second quarter. But it is up from 9.7% in
the first quarter, and 9.1% in the fourth quarter of 2006. It is also up from
the 10.5% figure for the third quarter and the 10.9% and the 10.2% figures
proposed for the second and first quarters of last year, respectively. The 11.3%
contribution factor will be used to calculate the line item charge on the
customer’s bill (i.e., to calculate the charges on revenues that a carrier
receives). The FCC’s USF Interim Contribution Methodology order prohibits
carriers from marking up the USF line item higher than the contribution factor.
If the FCC takes no action by September 27, the contribution factor will become
effective.
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FCC USF Administrative Reforms to Take
Effect on Oct. 24
(Source OPASTCO 411, 9-25-07)
The FCC issued a Report and Order to reform the Universal Service Fund’s (USF)
program administration. The new rules will require timely filing of worksheets
and payment of contributions, impose a five year record retention requirement
for all documents, and set performance measurements for the High-Cost program.
The new rules will take effect on Oct. 24.
To view the
Federal Register notice, visit
http://edocket.access.gpo.gov/2007/pdf/E7-18711.pdf.
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FCC to Look at Termination Fees Charged by Cellular
Operators
(Source: DowJones NewsWires, Corey
Bowes, 9-11-07) Federal Communications Commission Chairman Kevin Martin
said the agency will look at the early termination fees charged by
cellular, telephone and cable companies to customers who want to break their
contracts.
Speaking to reporters before the FCC's monthly public
meeting, Martin said there is a need to look at the fees charged not just by
wireless companies, which are often focused on, but on all industries the agency
regulates.
He said this would include cable and telephone companies that
levy the fees as part of their so-called triple-play offerings of cable,
internet and phone service.
"I think it may be important for the commission to look at the early
termination fees across all platforms," Martin said.
The chairman stopped short of saying the FCC would take
action to prevent these types of fees from being charged, but the fact that he
has committed the agency to looking at the situation indicates it is on his
radar screen.
Last week, two lawmakers in the Senate introduced legislation
that would require wireless companies to pro rate these fees, meaning if a
customer wanted to terminate a contract half way through the standard two-year
timeframe, they would be charged half the fee.
Verizon Wireless already offers this option, but the other major wireless
carriers don't.
The bill, backed by Sens. Jay Rockefeller, D-W.V., and Amy Klobuchar, D-Minn.,
doesn't address termination fees levied by other FCC regulated industries.
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FCC
Replaces Outmoded Long-Distance Rules with New Protections for Consumers
(FCC News Release 8-31-07) The Federal Communications
Commission establishes a new framework to govern the provision of in-region,
long distance services by the Bell Operating Companies (BOCs) and their
independent incumbent local exchange carrier (incumbent LEC) affiliates. The
old framework included requirements that the BOCs separate their local telephone
and long distance operations, which is at odds with a market environment where
local and long distance services increasingly are marketed and provided on a
bundled basis. The new framework replaces those more burdensome regulations
with less intrusive measures that protect important customer interests while
allowing the BOCs and their independent incumbent LEC affiliates to respond to
marketplace demands efficiently and effectively.
In particular, in order to protect consumers who make relatively few
long-distance calls, the BOCs have committed to offer special rate plans
tailored to those consumers for three years. The BOCs also have committed to
provide subscribers to bundled single-rate local/long distance plans adequate
information regarding their monthly usage in order to ensure such consumers can
make informed choices concerning their options for making
long distance calls. The Commission adopted these commitments as conditions of
the new regulatory framework.
The new framework renders moot much of a
petition for forbearance filed by AT&T Corp. (FCC 07-159)
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Joint
Board to Reform Long Term, Comprehensive High-Cost Universal Service
The Federal-State Joint Board on Universal Service (Joint Board) releases the
following statement:
The Joint Board is taking a fresh look at
high-cost universal service support. The Joint Board has tentatively agreed
that:
1. Support mechanisms for the future will focus on:
2. In addition to the principles set forth in the statute,
support mechanisms for the future will be guided by the following principles:
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Cost control |
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Accountability |
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State participation |
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Infrastructure build out in unserved areas |
3. The equal support rule will not be part of future support mechanisms.
(Sept. 6, 2007, WC Docket 05-337, CC Docket 96-45)
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Telecommunications Provider Locator
(Source: FCC News
Release 9-7-07) The Federal Communications Commission (FCC)
released its annual Telecommunications Provider Locator report. The
report lists 5,428 companies registered to provide interstate telecommunications
as of November 2006, as compared to 5,632 companies as of October 2005. For
each of these providers, the report identifies whether it reported revenue for
local, wireless, payphone, operator and prepaid calling card, or other toll
services, and whether it contributed to support universal service. The report
also provides contact information for each company.
This report was compiled using information
from FCC Form 499-A Telecommunications Reporting Worksheets filed by
telecommunications providers. The filed worksheets are proprietary and
therefore not available to the public.
The report may
be downloaded from the Wireline Competition Bureau Statistical Reports Internet
site, which can be reached at
www.fcc.gov/wcb/iatd/locator.html
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FCC
Releases Reference Book
(Source: FCC NewsRelease 9-26-07) The
Federal Communications Commission (FCC) released
its annual
report, Reference Book of
Rates, Price Indices, and
Household Expenditures for Telephone Service.
The report contains information on
local and long distance rates paid by residential and business consumers,
household expenditures, and price indices. Highlights include the following:
Toll Service
Rates
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The average revenue per minute of
wireline long distance calling, which reflects rates paid by residential and
business consumers, remained at 6 cents in 2005 for the third consecutive
year, and represents a decrease of 60% from 1992, when discount and
promotional long distance plans were introduced. |
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During 2006, the consumer price index
(CPI) for wireline interstate toll service rose 5.1% and the CPI for
intrastate toll service increased 3.3%, while the overall CPI rose 2.5%. |
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Long-term, the CPI for wireline
interstate toll service in December 2006 was 33% lower than in December 1997,
and for intrastate toll service, 24% lower, while the overall CPI rose by 25%
during the same period. |
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The December 2006 CPI for wireless
service remained unchanged from December 2005. Long-term, the CPI for
wireless services was 35% lower in December 2006 than it was in December 1997. |
Rates
for Local Service
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The Lifeline universal service program
subsidizes the monthly phone charges for low-income households, while the Link
Up program subsidizes charges for the connection of a phone line. Based on a
sample of cities, Lifeline conferred an average monthly benefit of $14.65, and
Link Up conferred an average benefit of $29.94. |
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The average rate paid by business
customers for a single phone line was $45.31 in 2006, compared to $43.75 in
2005, an increase of 3.5%. The average connection charge for single-line
business customers fell from $74.18 in 2005 to $72.26 in 2006, a decrease of
2.5%. |
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The average rate paid by residential
customers for unlimited touch-tone calling was $25.27 in 2006, compared to
$24.64 in 2005, an increase of 2.6%. The average connection charge for
residential customers increased to $42.92 in 2006 from $42.80 in 2005. |
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Consumer Expenditures for Telephone Service
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According to Bureau of Labor Statistics (BLS) surveys, average monthly
expenditures for telephone service for all U.S. households rose from $82.50 in
2004 to $87.33 in 2005, an increase of 5.8%. Telephone service continues to
comprise approximately 2% of household expenditures. |
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Also, according to BLS surveys, urban households continue to spend more on
telephone service than rural households. During 2005, average annual
expenditures for urban households were $1055, as compared to $966 for rural
households. |
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According to data provided by TNS Telecoms, a marketing research firm,
households with wireline telephone service spent an average total of $97 per
month on telephone services during the year 2005 (compared to $92 in 2004);
$36 per month on local service (same as in 2004); $8 per month on long
distance service (compared to $9 in 2004); and $53 per month on wireless
service (compared to $47 in 2004). |
The report can be
downloaded from the Wireline Competition Bureau Statistical Reports Internet
site at www.fcc.gov/wcb/stats.
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FEDERAL LEGISLATIVE NEWS
NOTE -
BILLS AVAILABLE ONLINE ARE AVAILABLE BY CLICKING ON HEADLINE
HOUSE
HR
3627 - Space Introduces House Broadband Inventory Bill
(Source: OPASTCO 411, 9-25-07)
On Sept. 20, Rep. Zack Space (D-Ohio) introduced H.R. 3627, the Connect the
Nation Act. The legislation would fund statewide initiatives to identify and
track broadband availability. Participating initiatives would be required to
develop a baseline assessment for the state, inventory service providers,
identify areas with low availability levels, identify barriers to uptake, and
measure consumers’ and businesses’ take rates. The bill would require
organizations funded by the program to develop a geographic information system
(GIS) map that identifies gaps in service. Participants would be mandated to
create a plan to encourage deployment and uptake using local demand aggregation,
mapping analysis and market intelligence to improve the business case for
bringing broadband to previously unserved areas.
Organizations receiving grants would be required to match at
least 20 percent of the federal funds they receive. Groups that have received
federal funds during the last four years would be ineligible for funding under
the bill. Participants tracking deployment statistics would not be permitted to
disclose confidential or proprietary information offered by service providers.
The Senate companion bill, S. 1190, was introduced by Sen.
Richard Durbin (D-Ill.) on April 24 (411, May 3). Another Senate
broadband inventory bill, S. 1492, was approved by the Senate Commerce Committee
on July 19 (411, July 24). On May 17, the House Energy and Commerce
Committee held a hearing on a discussion draft for a broadband mapping bill (411,
May 17).
To view the bill
text for H.R. 3627, visit
http://thomas.loc.gov/home/gpoxmlc110/h3627_ih.xml.
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HR 3403 -
Markey Issues Statement on VoIP E911 Bill
(Source: OPASTCO 411, 9-20-07)
The House Subcommittee on
Telecommunications and the Internet held a hearing on H.R. 3403, the 911
Modernization and Public Safety Act of 2007. The legislation would mandate the
FCC to issue regulations allowing IP-enabled service providers to access network
components necessary to offer E911 services at the same rates, terms and
conditions offered to commercial mobile radio service providers. Rep. Ed
Markey (D-Mass.) said that the FCC has not yet ruled that voice over Internet
protocol (VoIP) service providers have a legal right to access the network
components necessary to fulfill E911 service obligations. Markey said that the
bill would ensure that VoIP service providers can access the infrastructure
necessary to offer E911 services and would give them the same liability
protections that wireless service providers currently have.
To view the statement, visit
http://markey.house.gov/index.php?option=content&task=view&id=3086&Itemid=125.
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HR
3565 - House Wireless Interstate Toll Regulation Bill Introduced
(Source:
OPASTCO 411, 9-20-07) On Sept. 18, Rep. Madeleine Bordallo (D-Guam)
introduced H.R. 3565, the Insular Rate for Cellular Customers Act. The
legislation would impose the same regulations on interexchange services offered
by commercial mobile radio service (CMRS) providers as are imposed on
interstate, interexchange service providers.
To view the bill, visit
http://thomas.loc.gov/home/gpoxmlc110/h3565_ih.xml.
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HR
3541 - Rep. Doyle Introduces Do-Not-Call List Extension Bill
(Source OPASTCO 411 9-18-07)
On Sept. 17, Rep. Mike Doyle (D-Penn.) introduced H.R. 3541, the Do-Not-Call
Improvement Act of 2007. The legislation would remove the five-year expiration
for numbers added to the Federal Trade Commission’s (FTC) Do-Not- Call list and
prevent the FTC from creating a new expiration date. To view the bill text,
please visit
http://thomas.loc.gov/home/gpoxmlc110/h3541_ih.xml.
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HR
3482 - Number Portability Bill Introduced in House
(Source OPASTCO
411 9-11-07) On Sept. 6, Rep. Mary Bono (R-Calif.) introduced H.R.
3482, the Same Number Act of 2007.The legislation would mandate the FCC to
establish number portability performance standards that require all carriers to
port numbers in an expeditious and efficient manner; institute a uniform porting
process that limits the information that the customer’s previous carrier can
require to validate and complete the port; prohibit the customer’s previous
carrier from deactivating and removing the number from its switch for at least
48 hours after the port is completed; and encourage reasonable automation. The
Commission would be required to account for differences between simple and
complex ports, and grant temporary waivers for carriers or groups of carriers
that demonstrate that the rules would impose unreasonable compliance costs.
Carriers would be required to report annually to the FCC on their porting
activities, including the number of ports they failed to complete on time and
the reasons why. The bill would apply to both telecommunications-based and
IP-enabled voice services. On July 19, the Senate Commerce Committee marked up
the Senate companion bill, S. 1769 (411, July 14). To view the bill text,
please visit
http://thomas.loc.gov/home/gpoxmlc110/h3482_ih.xml.
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SENATE
Wireless Consumer Protection Bill Introduced in Senate
(Source OPASTCO
411 9-11-07) On Sept. 7, Sens. Amy Klobuchar (D-Minn.) and Jay
Rockefeller (D-W.Va.) introduced the Cell Phone Consumer Empowerment Act of
2007. The legislation would require wireless carriers to pro-rate early
termination fees (ETFs) that they offer to customers, with an ETF for a two-year
contract cut in half after one year. Customers would be allowed to cancel any
contract within 30 days of signing without facing an ETF. The bill would mandate
carriers to offer service maps that enable customers to determine whether or not
service is available in their homes. The proposal would require the FCC to
collect data on carriers’ dropped calls and coverage gaps, and make this
available to the public. Under the legislation, carriers’ service contracts
would be required to disclose all contract terms, charges, minutes, taxes,
surcharges and E-911 service information prior to signing. The bill would
mandate that taxes and fees be listed in a separate section, and that roaming
charges be separately itemized and sent to customers within 60 days of relevant
calls being made. Carriers would be required to provide point-of-sale notice of
any contract extensions and allow customers to cancel any extensions within 30
days. The proposal would require carriers to notify customers of changes to
rates or terms at least 30 days in advance. The measure would require the
Commission to report on how handset locking effects consumers. The proposal
would preempt all state laws except those that offer consumers more stringent
protections. For more information, visit
http://klobuchar.senate.gov/newsreleases_detail.cfm?id=281970&.
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S
1453 - Senate Markup Internet Access Tax Moratorium Extension
(Source: OPASTCO 411 9-25-07)
On Sept. 27, the Senate Commerce Committee began a markup of S. 1453, the
Internet Tax Freedom Act Extension Act of 2007. The legislation, sponsored by
Sen. Thomas Carper (D-Del.), would extend the federal moratorium on state and
local taxes on Internet access until 2011. The current moratorium will expire on
Nov. 1. The bill would also exclude telecom services from the moratorium,
including services delivered using Internet protocol. For more information about
the markup, visit
http://commerce.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=1899.
On Sept. 20, Sens. Trent Lott (R-Miss.), John McCain (R-Ariz.)
and John Sununu (D-N.H.) issued a press release recommending that the moratorium
be made permanent. Sens. Harry Reid (D-Nev.), McCain, Sununu and Ron Wyden
(D-Ore.) are sponsors of S. 156, the Permanent Internet Tax Freedom Act of 2007
(411, Jan. 5). The legislation would ban taxes on Internet access, ban
double taxation of products or services purchased over the Internet, and ban
taxes that treat purchases over the Internet differently than other sales. The
senators’ statement is available at
http://mccain.senate.gov/press_office/view_article.cfm?id=1133.
Sen. Gordon Smith
(R-Ore.) also issued a statement supporting a permanent moratorium, available at
http://gsmith.senate.gov/public/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=1083.
Two House bills would impose a permanent moratorium. They
include H.R. 743, sponsored by Rep. Anna Eshoo (D-Calif.), and H.R. 1077,
sponsored by Rep. John Campbell (R-Calif.).
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PLACE YOUR AD HERE!
CONTACT US
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October 15-16, 2007 - NTCA Region 9 Meeting, Sheraton Billings
Hotel, Billings Montana. For more information go to
www.ntca.org.
October 31-November 1, 2007 - OPASTCO 2007 Technical and Marketing
Symposium - Home Networks/Broadband, Minneapolis Airport Marriott,
Minneapolis, MN. For more information go to
www.opastco.org.
November 7-8, 2007 - VoIP Training, Holiday Inn Sacramento Northeast.
For more information go to
www.calcomwebsite.com.
Seminar Series for 2007
John Staurulakis, Inc. (JSI) has developed its
comprehensive Seminar Series for 2007.
CLICK HERE
Moss Adams Telecom Seminars
CLICK HERE
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September 2007
August 2007
July 2007
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Nevada Telecommunications Association. All rights
reserved.
PO Box 34449, Reno, NV 89533-4449
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