TELECOM Digest     Mon, 29 Jan 2007 19:03:00 EST    Volume 26 : Issue 30

Inside This Issue:                            Editor: Patrick A. Townson

    Local Governments Complain FCC Not Playing Fair (Associated Press NewsWire)
    Deutsche Telekom Loses 2.3 Million Fixed Line Users (Agence France Presse)
    CommunicationsDirect News Daily Update (communicationsdirect_daily)
    Deutsche Telekom Lowers 2007 Earnings (USTelecom dailyLead)
    Re: Violence Prompts Wisconsin School Cell Phone Ban (Lisa Hancock)
    Re: DA Wants to Restrict Pre-Paid Cell Phones (Dave Garland)

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Date: Sun, 28 Jan 2007 16:48:23 -0600
From: Aassociated Press News Wire <ap@telecom-digest.org>
Subject: Local Governments Complain FCC Not Playing Fair 


Local Governments: FCC Not Playing Fair

The nation's chief telecommunications regulator stands accused of
misrepresenting the facts while pushing through rules that will make
it easier for big phone companies to get into cable television.

The policy change won approval by the Federal Communications
Commission on a 3-2 vote Dec. 20. That angered local government
officials who claim the agency overstepped its authority and now
promise a legal challenge.  The vote also drew the threat of a
"legislative fix" from a powerful congressman.

The new rules are meant to spur more competition for cable television
providers. They require local governments to speed up the approval
process for new competitors, cap the fees paid by new entrants and
ease requirements that competitors build systems that reach every
home.

Consumer groups long have complained about rising cable rates and poor
service, blaming the problems on a lack of competition.

But opponents of the FCC's action say the new rules amount to a
"federalization" of the cable franchising process. They contend the
change will mean a loss of local oversight, fewer dollars for public
and government access channels and the possibility of "cherry picking"
by companies that choose to serve only the richest neighborhoods.

Supporters of the policy change have cited dozens of instances in
which local governments have made unreasonable demands of new
competitors, effectively blocking them from offering service. 

It was one of those claims that raised the ire of David L. Smith, the
city attorney in Tampa, Fla. He said the FCC chairman, Kevin Martin,
made a "blatantly inaccurate allegation" about Tampa's conduct during
franchise negotiations with Verizon Communications Inc.

Martin was quizzing an agency employee during a commission meeting
before casting his vote when he asked: "Is Verizon still required to
film the tutoring classes for the math classes in Tampa, Florida in
order to get a franchise?"

Rosemary Harold, a deputy chief in the FCC's Media Bureau, answered,
"Yes, Mr. Chairman."

Harold was put on the spot earlier by commissioner Jonathan Adelstein,
who voted against the FCC proposal. Adelstein asked Harold to cite
"specific communities" that are "particularly having a problem right
now" in gaining a franchise.

Smith, who negotiated with Verizon in Tampa, says Martin's allegation
neither was in nor a condition of the franchise agreement. Martin's
characterization, the lawyer said, was "complete and abject fiction."

Smith also said the FCC had never contacted him about the claim.

In an interview Friday, Martin said he probably should not have used
the word "still" but largely stood by his argument _ that Tampa was
making an unreasonable demand of Verizon. He said he had not responded
to Smith's letter, but would do so.

"These are difficult issues," he said. "I think the commission is
trying to find a balance between protecting the local communities'
interest but also making sure they are not effectively pre-empting the
ability (of new companies) to get in and compete."

The dispute raises a larger question about whether the agency should
investigate specific allegations made by companies that stand to
benefit from rules or simply assume that they are true.

Adelstein, a Democrat, accused his agency of failing to "conduct any
independent fact-finding" and said the FCC did not "attempt to verify
the allegations made by parties who have a vested interest in the
outcome of this proceeding."

He accused Martin and the two other Republican commissioners who voted
in favor of the new rules of presuming that "in every case that the
big phone companies are right and the local governments are wrong."

FCC spokeswoman Tamara Lipper said it would be "impossible for the
commission to independently vet every single one of the millions of
comments that inform our rule-making."

She said the agency issues public notices and posts specific comment and 
reply comment periods to "ensure all sides of an issue have the 
opportunity to weigh in." If someone knowingly submits false information 
in the record, he can be "subject to disciplinary action," she added.

The stakes in this battle are high.

Companies such as Verizon and AT&T are spending billions of dollars to
lay fiber-optic cable in their service areas in the hope they will be
able to compete with the cable television industry.

The Tampa allegation outlined by Martin first appeared in a Wall
Street Journal story in October 2005 that painted a sympathetic
portrait of Verizon's travails in gaining franchises.

The account said Verizon, seeking permission to offer TV service in
Tampa, was presented with "a $13 million wish list" of items it
needed, including "video cameras to film a math-tutoring program for
kids."

The story stated that "Verizon lawyers saw it as a demand."

Less than a week after the story ran, the FCC opened its proceeding on
video franchising.

Smith said Tampa gave Verizon a $13 million "needs assessment" that he
says was required by law in order to obtain contributions for
equipment for public access and government channels. The city's
existing cable franchise, Bright House Networks, had paid $5.5 million
and pledged $1 million more, he said.

Smith also said under Florida law, a competitor would be required to
match that amount to obtain a franchise.

He said it is possible the "needs assessment" included video cameras
to film shows such as the math class, but that there was never "a
specific quid pro quo." Nor was anything like that mentioned in the
franchise agreement, he said.

"Even if it was on the needs list as one of the items, that doesn't
mean that's how the money would be spent," he added.

Oddly enough, Verizon mentions the tangle with Tampa in its comments
with the FCC, but does not name the city nor does it reference the
math program. It did, however, revise its comments and apologize after
a complaint from Tampa about how the company represented the
negotiations.

AT&T, however, listed the newspaper story in its FCC filing as part of
37 pages of examples of local communities erecting barriers to
competitors.

In addition to dealing with angry local governments, the agency's
video franchise decision faces other challenges.

Rep. John Dingell, chairman of the House Energy and Commerce
Committee, said through a spokeswoman that he believes the agency
overstepped its authority.

Dingell, D-Mich., was chairman and played a central role in passing
cable laws in 1984 and 1992 that the agency analyzed in making its
decision.

Spokeswoman Jodi Seth said Dingell "does not believe that the law
allows the FCC to drastically reduce the ability of a local government
to protect its citizens." She said Dingell plans to "review the FCC's
action in the course of the committee's oversight this year. At that
point, he may decide that a legislative fix is necessary."

Meanwhile, local governments are readying for a legal fight.

The National Association of Telecommunications Officers and Advisors,
a trade group that represents local governments on cable franchising
issues, has hired a law firm to challenge the decision. The group is
joined by the National League of Cities, the National Association of
Counties and others.

A court challenge cannot take place, however, until the FCC releases
the final version of the new rules. That is expected soon.


NOTE: For more telecom/internet/networking/computer news from the
daily media, check out our feature 'Telecom Digest Extra' each day at
http://telecom-digest.org/td-extra/more-news.html . Hundreds of new
articles daily. And, discuss this and other topics in our forum at
http://telecom-digest.org/forum (or)
http://telecom-digest.org/chat/index.html

For more news and headlines, please go to:
http://telecom-digest.org/td-extra/AP.html

------------------------------

Date: Sun, 28 Jan 2007 16:57:55 -0600
From: Agence France Presse  News Wire <afp@telecom-digest.org>
Subject: Deutsche Telekom Loses 2.3 Million Fixed Line Users


D-Telekom Loses 2.3 Million Fixed-Line Users and Lowers Outlook
BERLIN (AFP)

Germany's Deutsche Telekom, the biggest telecoms company in Europe,
lowered its 2007 earnings forecast after revealing it lost 2.3 million
fixed-line customers last year.

It said operating profit, as measured by earnings before interest,
tax, depreciation and amortisation (EBITDA), would be 19 billion euros
(24.5 billion dollars) compared with its previous prediction of
between 19.7 billion and 20.2 billion euros.

The group was revising expectations downwards "in accordance with the
extremely tough domestic competitive environment and the recent
development in foreign exchange rates", it said in a statement.

It is the second time in six months that it has been forced to lower
its outlook and reflects a problem faced by many former state
monopolies -- the steady degradation of their traditional base of
fixed-line customers.

Deutsche Telekom has long been losing fixed-line clients to low-cost
competitors, mobile operators and Internet-based systems such as
Skype, but the 2006 figures confirm the trend with 2.3 people million
jumping ship.

The group could count on 41.2 million fixed-line and Internet
customers in late 2005, but just one year later the figure was 38.96
million.

Deutsche Telekom said its fixed-line sector, called T-Com, "will
continue to play an active role in the expected continued tough
pricing competition".

New service and marketing initiatives were being introduced to bolster
the business and pre-tax earnings for the sector will therefore be
slashed by 800 million euros in 2007 compared with previous forecasts.

The traditionally buoyant mobile phone unit, T-Mobile, will suffer
from foreign exchange developments, the company said, prompting it to
cut its pre-tax earnings predictions by 200 million euros.

T-Mobile signed up 8.6 million new customers last year, taking its
total customer numbers in Europe and the United States to 106.4
million.

However the US arm of the business will see its profits hit by the
current strength of the euro.

Revenue was expected to be "moderate" and dividends to shareholders
would be 0.72 euros per share for 2006, the same level as in 2005.

Official figures for 2006 will be published on March 1.

The shift in technological challenges within the sector prompted
Deutsche Telekom to name Rene Obermann, the former head of its mobile
phone division, as chief executive to replace Kai-Uwe Ricke last
November.

But soon after his appointment, Obermann warned he could not "work
miracles" in the face of intense competition.
 

Copyright 2007, AFP. 

NOTE: For more telecom/internet/networking/computer news from the
daily media, check out our feature 'Telecom Digest Extra' each day at
http://telecom-digest.org/td-extra/more-news.html . Hundreds of new
articles daily. And, discuss this and other topics in our forum at
http://telecom-digest.org/forum (or)
http://telecom-digest.org/chat/index.html

For more news and headlines, please go to:
http://telecom-digest.org/td-extra/newstoday.html

------------------------------

Subject: CommunicationsDirect News Daily Update - January 29, 2007
From: communicationsdirect_daily <communications@communicationsdirectnews.com>
Reply-To: communicationsdirect_daily-owner@communicationsdirectnews.com
Date: Mon, 29 Jan 2007 11:37:10 EST


********************************
PricewaterhouseCoopers Presents
The CommunicationsDirect Daily Update
For January 29, 2007
********************************

Deutsche Telekom Issues Profit Warning on Fierce Competition and Weak
Dollar http://www.communicationsdirectnews.com/do.php/120/22374?11228

     The German fixed-line incumbent, Deutsche Telekom, has reduced its
     forecast for adjusted core operating profit, or EBITDA (earnings
     before interest, tax, depreciation and amortisation) by 1.2 billion
     euro (US$1.6 billion) to 19.0 billion euro, compared with an earlier
     estimate of between 19.7-20.2 billion euro. Slower growth at its...

American Tower Mulling Investment in Reliance Tower Unit=E2=80=94Report
http://www.communicationsdirectnews.com/do.php/140/22371?11228

     American Tower Corp. may buy 20% of the tower unit of India&#39;s
     Reliance Communications for US$1 billion, theHindustan Times
     daily said today, citing sources close to the development. A
     spokesman for Reliance Communications, India's second-largest
     mobile services operator, declined to comment on the report.
     Significance: The ...

New Energy for Broadband Over Power Line
http://www.communicationsdirectnews.com/do.php/150/22365?11228

     Broadband over Power Line (BPL) can best be described as that
     'other' fixed high-speed Internet access technology -- the one
     most consumers have never heard of. But BPL's days of obscurity
     may soon end, allowing the technology to join DSL and cable as a
     popular choice for wiring homes and businesses. Parks Associates,
     a ...

International Spotlight: Japan
http://www.communicationsdirectnews.com/do.php/150/22363?11228

     The big broadband trend in Japan these days, at least when it
     comes to Internet services, is pure speed -- on the order of 100
     Mbps in some situations. FTTH is growing rapidly in Japan, with
     recent data suggesting that FTTH is adding 10 high-speed Internet
     subs for every one cable modem and DSL customer combined. Still,
     cable is ...

NEC 'SPITs' In The Face Of VoIP SPAM
http://www.communicationsdirectnews.com/do.php/150/22358?11228

     NEC Corporation claims to have developed technology that can
     potentially defend against so-called 'SPam over Internet
     Telephony (SPIT)', the latest growing annoyance of the broadband
     age. NEC says it's getting 99-percent accuracy in detecting
     SPIT by using a technology it's calling "VoIP SEAL."
     Detecting ...

Tech Roundup: MIMO Hits WiMax
http://www.communicationsdirectnews.com/do.php/150/22355?11228

     MIMO's on the menu in this week's new technology roundup, with
     the smart antenna technology being used not just to speed up WLAN but
     also WiMax. If that's not fast enough for you, we also check out
     new fashion phones and see how COWs can boost Super Bowl coverage.
     4G for Real? Kyocera Corp. revealed this weekend ...

MSOs Switch Digital Gears
http://www.communicationsdirectnews.com/do.php/140/22350?11228

     Several leading North American cable operators, eager to save
     bandwidth and clear more space for advanced video and broadband
     services, are finally beginning to roll out switched digital
     broadcast technology.  Indeed, four of the five largest MSOs in
     the U.S. -- Cablevision Systems Corp., Comcast Corp., Cox
     Communications Inc. ...

Symantec Shakes Up Archiving
http://www.communicationsdirectnews.com/do.php/140/22344?11228

     Symantec will overhaul its archiving story next week in an
     attempt to cash in on users growing email paranoia, and rival
     EMC, which acquired Legato in 2003, is planning its own upgrade
     for later this year.  Both vendors are looking to widen the scope
     of their current offerings, with Symantec revamping its pricing
     and tying its ...


Your feedback on our e-letter is always welcome. Send email to:
CommunicationsDirect Editor <telecom_direct_editor@us.pwc.com>

Copyright (C) 2007 PricewaterhouseCoopers.

------------------------------

Date: Mon, 29 Jan 2007 13:10:51 CST
From: USTelecom dailyLead <ustelecom@dailylead.com>
Subject: Deutsche Telekom Lowers 2007 Earnings


USTelecom dailyLead
January 29, 2007
http://r.smartbrief.com/resp/gcgUfDtusXlkhkCibuddryZO

TODAY'S HEADLINES


NEWS OF THE DAY
* Deutsche Telekom lowers 2007 earnings expectations
BUSINESS & INDUSTRY WATCH
* BT rivals complain to European officials
* Regulators, rivals pursue Qualcomm
HOT TOPICS
* AT&T expands IPTV service
* Analysis: Telecom video intrigues investors
* Future looks bright for Comcast, cable industry
* Cable industry moves to address bandwidth crunch
* AT&T reports 17% increase in fourth-quarter profit
TECHNOLOGY TRENDS
* Chip makers turn to hafnium
* Report forecasts growth for Web TV downloads, warns about piracy
* In the U.S., the mobile Web still lags
* Bye-bye conventional TV, Microsoft chairman says
REGULATORY & LEGISLATIVE
* Web, broadband companies fight over who pays
* Localities take the offensive on franchise issue

Follow the link below to read quick summaries of these stories and others.
http://r.smartbrief.com/resp/gcgUfDtusXlkhkCibuddryZO

------------------------------

From: hancock4@bbs.cpcn.com
Subject: Re: Violence Prompts Wisconsin School Cell Phone Ban
Date: 29 Jan 2007 08:13:00 -0800
Organization: http://groups.google.com


On Jan 28, 12:35 am, Carrie Antlfinger, AP  <a...@telecom-digest.org> 
wrote:

> Two years ago, a fighting student used his cell phone twice in a
> matter of weeks to summon two carloads of family members, Pochowski
> said.

> Jamilynn Brushel, 18, a senior at Bradley Tech, said she would rather
> see stricter security guards and teachers, because students who want
> to fight will do so even without cell phones.

Yes, cell phones could aggravate a lousy situation as described above.

But cell phones didn't cause the basic problem nor will a ban on them 
cure it.

The real problem that must be dealt with is why people are getting
into these nasty fights in the first place.  Fighting is wrong.  A
secondary concern is the idea of calling in family reinforcements.
That suggests a very bad family attitude that needs to be addressed.
It would seem to me if a fight broke out I'd use a cell phone to call
the cops, not call for more fighters.

Kids who want to fight have found ways long before cell phones.
Rumors of a big "rumble" would circulate well in advance.

The administrators need to deal with their gangs and violent prone 
students.

------------------------------

From: Dave Garland <dave.garland@wizinfo.com>
Subject: Re: DA Wants to Restrict Pre-Paid Cell Phones
Date: Sun, 28 Jan 2007 18:21:32 -0600
Organization: Wizard Information


It was a dark and stormy night when PAT wrote:

> With the prepaid 'untraceable'
> cell phone however, one does not need to be anywhere near the scene
> of the crime. 

True.  But it does create an audit trail that identifies 1) what phone
made the call, and (assuming a newer phone) 2) exactly where it was at
the time, and 3) where it is at any future time that it is turned on.
You simply(?) have the network notify the authorities the instant the
phone is switched on, at which point the perp is carrying a homing
beacon.

I suppose in the case of a phone used to detonate a bomb those
wouldn't be relevant.  But would enough be left of the phone (assuming
the bomb maker is thinking about such things) to identify it after the
blast?  In any case, the same argument applies to lasers, TV remotes,
garage door openers, washing machine timers, alarm clocks, model
airplane remote control gear, and a host of other gadgets that could
be used to construct infernal devices, so we'd need ways to track
possession of all those things as well.

Dave

------------------------------


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*****************************