FCC Approves ALLTEL's Acquisition of Midwest Wireless Licenses

The FCC approved with conditions the transfer of control of licenses and authorizations held by Midwest Wireless and its subsidiaries to ALLTEL. These licenses and authorizations include: Cellular licenses, Broadband Personal Communications Service (PCS) licenses, Common Carrier Fixed Point-to-Point Microwave licenses, 39 GHz licenses, Local Multipoint Distribution Service (LMDS) licenses, and three international section 214 authorizations.

The FCC concluded that the likely public interest benefits of the merger outweigh any potential public interest harms and that competitive harm is unlikely in most mobile telephony markets involved in the proposed transaction. However, in the four Cellular Market Areas listed below, the FCC determined that likely competitive harms exceed the likely benefits of the transaction and, in these areas, imposed conditions that will effectively remedy the potential for these particular harms. The conditions imposed with respect to the cellular systems in the markets listed below mirror, in large part, the terms of a settlement agreement between ALLTEL, Midwest and the Department of Justice.

Specific conditions may be found at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-267729A1.pdf or www.fcc.gov .

The FCC also approved the application to transfer control of Great Western Cellular Holdings, L.L.C. and the one cellular license it holds from its controlling entity, Great Western Cellular Partners, L.L.C., to WWC Holding Co., Inc., a wholly-owned subsidiary of ALLTEL. The FCC considered this transaction in conjunction with the ALLTEL-Midwest Wireless transaction, since both transactions would result in ALLTEL's acquisition of overlapping spectrum and market share in the Minnesota 11 - Goodhue Rural Service Area.

 

Qualcomm Receives Split Ruling on Mobile Multimedia Deployment

The FCC granted in part and denied in part a Petition for Declaratory Ruling Filed by Qualcomm Incorporated regarding the requirements for interference protection in the 700 MHz band. Qualcomm is a Lower 700 MHz Band licensee and is seeking to deploy a mobile multimedia service called MediaFLO using this spectrum.

Qualcomm plans to deploy a nationwide multimedia network delivering video, audio, and data content to mobile phones. MediaFLO is designed to use Qualcomm's 700 MHz spectrum license for downlink (base station to mobile) communications and existing mobile telephone networks for uplink (mobile to base station) communications. Because Qualcomm's licenses cover TV/DTV Channel 55 of the 700 MHz Band, the company must protect broadcasters on Channels 54, 55 and 56 from interference using the criteria set forth in the FCC's rules.

The FCC declared that Office of Engineering and Technology Bulletin No. 69 (OET-69), with certain modifications, is an appropriate methodology for demonstrating whether the MediaFLO system complies with the FCC's rules on interference protection in the 700 MHz Band.

The FCC declined the company's request to declare that predicted interference to not more than two percent of the population served by a TV/DTV station is de minimis and therefore acceptable. However, the FCC granted a limited waiver using a measured approach where the allowable predicted interference to a TV/DTV station's service caused by the MediaFLO system will increase incrementally each year from the release of the Order until the end of the DTV transition in February 2009.

Qualcomm had requested that the FCC establish streamlined processing procedures for any OET-69 showings, including a rebuttable presumption that such showings are sufficient when no objections are filed with the FCC. Because Qualcomm's request for a de minimis interference exception was granted solely to Qualcomm through a waiver, rather than declaratory ruling, the FCC declined to establish streamlined processing of applications.

For additional information, please visit the FCC's website at www.fcc.gov or read more at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-267862A1.pdf .

 

Nebraska Lowers Surcharges and Reaches Wireless Milestone

Two telecommunications surcharges were lowered, and wireless telephone usage reached a Nebraska milestone by surpassing the number of landline telephone users this year.

The Nebraska Public Service Commission's annual Telecommunications Report to the Legislature notes that on October 1, 2005, the Commission lowered the Nebraska Universal Service Fund surcharge from 6.95% to 5.75% per month. Additionally, the Nebraska Telecommunications Relay Service monthly surcharge was reduced from seven cents to five cents per line.

Wireless telephone usage was nearly equal to the number of lines providing traditional telephone service at the end of the 2005 calendar year. Commission Chairman Lowell Johnson of North Bend said, "The number of cell phones exceeded the number of landline telephones during the fiscal year which ended June 30, 2006." At that time, wireless telephones claimed 54 percent of the combined wireless and wireline market, the first time wireless telephones held a majority share in Nebraska. The report also stated that competitive local telephone companies as a group now serve more landline telephones than the state's largest single incumbent local exchange carrier.

 

PSC Looks to TV Frequencies to Improve Wireless Service

The North Dakota PSC, together with rural state officials in Vermont, Nebraska and Maine, submitted comments to the FCC encouraging the use of the 700 MHz spectrum for wireless telecommunications service in rural areas. The North Dakota PSC said the 700 MHz spectrum, a lower frequency than spectrums traditionally used by cell phones, could prove to be the future of rural wireless technology because its signals aren't as easily disrupted and they can carry farther.

Broadcasters who have used the 700MHz spectrum for television channels 52-69, will no longer need it once they make the change from analog to digital television. The FCC is taking comments on the proposed uses of the spectrum and how it should be allocated.

"This part of the spectrum is "beachfront property" for rural telecommunications," said Commissioner Tony Clark. "It is ideal for transmitting both voice and broadband technologies across sparsely populated areas. We need to speak loud and clear about the need for wireless service in rural America before the FCC determines how to handle the remaining blocks of the spectrum."

The FCC established February 17, 2009 as a new firm deadline for the end of the transition to digital television. Congress has required the FCC to begin auctioning the remaining 700 MHz spectrum that will be available no later than Jan. 28, 2008.

According to the comments submitted by the PSC and its affiliates, the FCC could place a high priority on licensing the spectrum to those who will put it to use in rural areas and allow the spectrum to be licensed over smaller areas than what has traditionally been done. The document also suggests ways to ensure companies are improving coverage in rural areas with the blocks of the spectrum they have purchased. One suggestion is requiring a very high population-based requirement as its basic coverage requirement, which could include requiring companies to provide coverage to 90 percent of the population within eight years in the license area if the licensee is offering mobile or fixed point-to-multipoint services. The report also suggests the FCC should adopt a keep-what-you-use policy that requires companies to give up parts of the spectrum they are not using.

 

Rate Changes Approved in Tennessee

The Tennessee Regulatory Authority (TRA) approved rate changes for 18 telephone companies providing a reduction for services to some Tennessee businesses.

The changes were a result of property tax legislation passed by the Tennessee General Assembly in 2001, which effectively lowered the amount of property taxes that incumbent local exchange companies (ILECs) are assessed for their properties. In turn for this reduction, ILECs were required to revise their rates for Tennessee businesses to reflect their savings.

"The TRA is glad to be able to play a role in ensuring that needs of both the utility providers and consumers are being met. Thanks to legislation like this, the interests of both have been acknowledged and balanced," said TRA Chairman Sara Kyle.

These tariff approvals equate to $13.5 million for Tennessee companies.

The following companies revised their rates to reflect the tax savings adjustment: Crockett Telephone, Peoples Telephone, West Tennessee Telephone, United Telephone, Ardmore Telephone, Millington Telephone, CenturyTel of Adamsville, CenturyTel of Ooltewah, CenturyTel of Claiborne, Loretto Telephone, Concord Telephone, Humphreys County Telephone, Tellico Telephone, Tennessee Telephone, UTSE (dba Embarq), Citizens of Tennessee, Citizens of Volunteer State and BellSouth Telecommunications.

The recent action by the TRA allowed those adjusted rates to become effective on October 1.

 

Cox's Non-Video Subscribership Grows

Nine months after implementing a new acquisition strategy targeting non-video subscribers, Cox Communications, Inc., announced that the approach is paying off with accelerated growth of customers who only purchase telephone and/or Internet services. Currently, Cox has more than 432,000 non-video subscribers; a figure that grew by 21 percent over the same period a year ago.

Supporting the growth in non-video subscribers was a strong quarter for both Cox High Speed Internet and Cox Digital Telephone. The company now has more than 3.2 million broadband subscribers, an 18 percent increase over the same period a year ago. Telephone service subscriptions rose to 1.9 million, an increase of 24 percent. Basic video subscriptions grew by 1.6 percent to 5.4 million and Digital Cable subscriptions grew by 14 percent to 2.7 million. Cox reported a 2.8 percent growth in total residential customer relationships to more than 5.8 million. The company ended the quarter with more than 3.3 million bundled customers, representing 57 percent of total residential customers and 16 percent growth over the same period a year ago.

 

TEOCO Buys Rival Revenue Assurance Company

Revenue assurance provider TEOCO has acquired the carrier cost management and business intelligence assets of rival company Vibrant Solutions, which serves wireline and wireless carriers.

Terms of the deal were not disclosed.

"This is an exciting time in the telecommunications industry where consolidation drives businesses to make bold moves," said Atul Jain Chairman and CEO of TEOCO. "We have competed in the same market with Vibrant Solutions for six years and have great respect for their employees, software and innovative capability."

TEOCO bought the Vibrant Solutions division that includes the ViewLogic, Acuity and Cost of Access software systems; TEOCO also purchased the Vibrant Solutions and HyperAnalytics trademarks.

The Vibrant Solutions acquisition adds 15 carriers to TEOCO's more than 25 customers.