Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

For a Web version of today's TRDaily, go to http://www.tr.com/online/trd/2011/td090911/index.htm

************************************************************************************ Table of Contents

LEGISLATION . Jobs Proposal’s Wireless Plan Draws Industry, Public Safety Praise . House Repubs Want DoJ/FCC Briefing On AT&T/T-Mobile Deal . Public Safety Officials Work To Educate ‘Supercommittee’ . Patent Bill Praised For Job-Creation Possibilities . Data Privacy Bills Slated For Senate Judiciary Markup . Blackburn To Host Online Privacy Roundtable . DHS Reauthorization Markup Set

TELECOM REGULATION . GPS Coalition Weighs In On LightSquared Proposal . RUS To Implement 911 Eligibility For Telecom Loans . AT&T Fires Back At DoJ, Says It Wants To Resolve Concerns . Path To Interim 911 Solution For Deaf Users Debated . EC Wants eCall Installed On New Vehicles In 2015 . European Parliament Panel Drafts Net Neutrality Resolution . ITU Eyes ICT Standards Work To Combat Climate Change . U.K.’s Ofcom Extends Review Of Emergency Calling . Carrier Joins Verizon Wireless Rural Program . Former Telco CEO Sentenced For Bribery

TELECOM BUSINESS . Cisco Completes Axioss Assets Acquisition . Comverse Reports 17% Revenue Decline . Study: Utility Telecom Spending On The Rise

CAPITAL MARKETS . Backupify Raises $5M Of Venture Funding

PERSONNEL . ICANN Interim CFO . TDS Appointment . Attune RTD CTO . VGo Communications CEO Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

************************************************************************************ LEGISLATION ************************************************************************************ INDUSTRY, PUBLIC SAFETY PRAISE OBAMA FOR WIRELESS PLAN IN AMERICAN JOBS ACT

Wireless and other industry representatives and public safety officials today praised President Obama for including his wireless initiative in the American Jobs Act he announced last night in a speech to Congress, saying they hope the action will spur the passage of incentive auctions and 700 megahertz band D-block reallocation legislation.

An overview of Mr. Obama’s jobs package says he “is calling for a deficit reducing plan to deploy high- speed wireless services to at least 98 percent of Americans, including those in more remote rural communities, while freeing up spectrum through incentive auctions, spurring innovation, and creating a nationwide, interoperable wireless network for public safety.”

The overview said the wireless initiative would cost $10 billion and reduce the deficit by $18 billion because of proceeds from spectrum auctions. Mr. Obama said last night he plans to announce on Sept. 19 a deficit plan “that will not only cover the cost of this jobs bill, but stabilize our debt in the long run.” The overview indicated that the auction proceeds would help pay for the $447 billion jobs package.

President Obama first announced his wireless initiative in his State of the Union speech in January (TRDaily, Jan. 25), and he and his aides fleshed out details the next month. Overall, the goal is to free up 500 MHz of spectrum for wireless broadband services over the next decade. The figures cited in the overview on the jobs package are slightly different than those the administration has previously released.

For example, the White House has said the administration would back a $10.7 billion commitment for a nationwide public safety broadband network, including $7 billion to deploy the network, $3.2 billion to offset the budgeted funds that the U.S. Treasury wouldn't get from an auction of the D block, and $500 million for a Wireless Innovation (WIN) Fund for research and development to ensure that the network meets public safety requirements. In addition, the administration has said it would push legislation to reserve a one-time $5 billion investment in the Universal Service Fund to ensure that 4G services will be built in rural areas.

Public safety officials, who said they were pleased by the spectrum provisions being included in Mr. Obama's jobs package, said today that administration officials briefed them at a high level on the plan mentioned last night and they understand that $7 billion would still go to build the public safety network. But they said less funding could be reserved for research. Also, the Congressional Budget Office has estimated the reallocation of the D block would “score” at $2.75 billion rather than $3.2 Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

billion, providing additional savings. However, CBO also has projected that FCC auctions would generate revenues of $24.5 billion, less than the net $27.8 billion estimated by the administration. CBO's projection was made when it scored S 911, incentive-auctions and D-block reallocation legislation that is awaiting a Senate floor vote.

In a letter today, Rep. Henry A. Waxman (D., Calif.), ranking member of the House Energy and Commerce Committee, asked Rep. Fred Upton (R., Mich.), the committee's chairman, to schedule hearing and markups of wireless and other provisions of the American Jobs Act that fall under the jurisdiction of the panel. And House Speaker John Boehner (R., Ohio) and other Republican leaders asked Mr. Obama to produce legislative text for his proposals so they can be scored by CBO. “The House and our committees will immediately begin the process of reviewing and considering your proposals,” they wrote.

But Reps. Upton and Greg Walden (R., Ore.), chairman of the communications and technology subcommittee, oppose reallocation of the D block and instead believe it should be reauctioned.

“We appreciate President Obama's continued support for incentive spectrum auctions, and as our letter to him a few weeks ago requested, we look forward to the President's leadership in the effort underway at NTIA [National Telecommunications and Information Administration] to work with the federal agencies to identify and reallocate additional government spectrum. Reallocating government spectrum below 3 GHz is as important as the efforts to pass incentive auction legislation,” said Steve Largent, president and chief executive officer of CTIA. “As third party experts have noted, when the U.S. wireless industry has spectrum, we have an overall positive impact on our nation's economy by investing billions in infrastructure and creating jobs. We are eager to work with the President, members of Congress, the FCC Chairman and Commissioners and other policymakers to ensure we remain the world's wireless industry leaders while helping to improve our country's economy.”

“We commend President Obama for his proposal to put more wireless spectrum into the marketplace,” said Jim Cicconi, senior executive vice president-external and legislative affairs for AT&T, Inc. “Additional spectrum is not only essential for the wireless industry, it is the lifeblood for hundreds of millions of wireless customers. Moreover, there is urgency to this measure because any spectrum released will still take many years to reach the market. The proposal unveiled last night will go a long way to resolving this critical national infrastructure problem. It is also important, though, to recognize that other more immediate measures will be needed - including approval of AT&T’s merger with T- Mobile - if our nation is to realize the President's goal of providing mobile broadband to 98% of all Americans.” Mr. Cicconi also commended Mr. Obama for supporting corporate tax reform and a reduction of regulations.

During a conference call with reporters this morning, representatives of the Internet Innovation Alliance (IIA) suggested that while it is wise for the president to support the use of incentive auctions Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

to free up spectrum, there is no quicker way to expand the reach of mobile broadband services than to back AT&T’s purchase of T-Mobile.

“Increasing broadband access has real economic gains for those out in the country,” said Jamal Simmons, a television political commentator and IIA’s co-chairman “There is too much data going over too little spectrum. ...We want to look at the panoply of issues related to broadband, including incentive auctions and this merger.”

While the deal itself wouldn't increase the amount of spectrum available, Henry Rivera, strategic counsel to IIA and a former FCC Commissioner, said it could be used more effectively. “The net spectrum is the same, but the way it is utilized by AT&T will result in greater efficiencies,” he said. “That’s what they are counting on as part of this.”

In a statement released last night, Jonathan Spalter, chairman of Mobile Future, said, “We applaud the President's recognition of the crucial role mobile broadband can play in spurring job growth and boosting the nation’s economy. Recent data shows that making additional spectrum available for wireless will lead to 500,000 new jobs in America. We strongly encourage lawmakers to make more wireless spectrum available quickly to meet exploding consumer demand, fuel our technology-driven economy, and unleash investment and new economic opportunities.”

Jeff Silva, an analyst for Medley Global Advisors LLC, said Mr. Obama’s decision to include the wireless provisions in his jobs plan could be a mixed bag.

“President Obama's inclusion of incentive auction/D-Block public-safety reallocation legislation in his jobs plan further raises the profile of the measure and could bolster its chances in Congress. However, key House Republican support for auctioning the D-Block, broadcast industry pushback and 2012 election-cycle politics generally could still complicate matters,” Mr. Silva said. “Republicans, who’ve been quick to characterize Obama's proposal as another costly stimulus package and who've rejected what they characterize as an all-or-nothing approach by the president, have little incentive to pass a sweeping jobs bill and give the president a big victory as he begins his re-election bid. As a result, it’s possible incentive auction/public-safety legislation could get entangled in a high-stakes partisan battle that could play out significantly in the super committee's deficit reduction deliberations.”

But Mr. Silva added, “While the president could find it hard to get much of what he's seeking in his jobs plan, the reality of the debate playing out against the backdrop of the 10th anniversary of 9/11 could boost chances for incentive auction/public-safety legislation being included in any final package.”

David Taylor, managing partner of Capitol Solutions, a Washington-based lobbying firm, said he’s not surprised by the high profile of spectrum legislation. “Spectrum remains one of few deficit reduction options measured in billions that has bipartisan support,” he noted. “The bigger issue is that six weeks Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

after signing the Budget Control Act into law, the President has decided that the mission of the Joint Select Committee on Deficit Reduction should be expanded. Rather than generate $1.5 trillion in budget savings over 10 years to meet statutory deficit reduction targets, the President has asked the Joint Select Committee to generate $2 trillion in savings to pay for a jobs program and meet deficit reduction targets. That request will have a much bigger impact on the Joint Select Committee’s deliberations than anything he said about spectrum.”

Meanwhile, President Obama also proposed a $25 billion investment to modernize public schools, including making classrooms “Internet-ready” and building new science and computer labs.

TechAmerica President and Chief Executive Officer Phil Bond said that to fill the jobs the president hopes to create, you “need a qualified workforce. The President’s recognition of the importance of STEM education as an essential part of the American Jobs Act is an encouraging advancement of a top TechAmerica priority.”

Tax cuts proposed by the president to boost hiring and investment by businesses include an extension through 2012 of a policy that allows businesses to deduct 100% of new investments in plant and equipment as an expense in the year purchased, rather than depreciate it over multiple years.

TechAmerica urged the president and Congress “to go further and create a tax code that encourages investment in innovation and research. ... We are hopeful that a permanent R&D credit will be a part of this plan for that very reason.” It also urged passage of free trade agreements with Panama, Colombia and South Korea. - Paul Kirby, [email protected]; Ted Gotsch, [email protected]; and Lynn Stanton, [email protected]

************************************************************************************ HOUSE REPUBLICANS WANT BRIEFING FROM DOJ, FCC ON AT&T/T-MOBILE MERGER

Republican leaders on the House Energy and Commerce Committee have asked the Department of Justice and FCC to provide in the next two weeks a bipartisan briefing to committee members and staff on the communications and technology subcommittee on their review of AT&T, Inc.’s proposed $39 billion acquisition of T-Mobile USA, Inc., including DoJ’s effort to block it in federal court (TRDaily, Aug. 31).

“In light of the Department of Justice's recent court filing to enjoin the proposed acquisition of T- Mobile USA by AT&T, we request a bipartisan briefing for Members and staff on the Subcommittee on Communications and Technology on the decisionmaking process at each of your agencies leading up to this filing,” Reps. Fred Upton (R., Mich.) and Greg Walden (R., Ore.), the respective chairmen of the full committee and communications subcommittee, said in a letter yesterday to Attorney General Eric H. Holder Jr. and FCC Chairman Julius Genachowski that was also signed by Rep. Joe Barton (R., Texas). Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

“Please be prepared to describe the process each agency used, including the extent to which each agency has been considering the impact on jobs and economic growth, as well as other indicia of competition beyond the number of competitors and market share.”

The letter added, “We have also seen press reports that the DOJ's ‘door is open’ if AT&T and T-Mobile USA want to address the DOJ's ‘concerns.’ We would like to know what the DOJ’s specific concerns are and how these concerns relate to the impact on jobs and economic growth. Finally, if your agencies are considering imposing conditions on the transaction, we would like your agency to confirm that it will only consider imposing conditions that are narrowly tailored to remedy transaction-specific harms.”

In their letters, the lawmakers noted that the national unemployment rate remains over 9% and they say they “have therefore been actively monitoring the debates surrounding this acquisition to better understand its impacts on jobs, economic growth and competition. It is clear that this is a complex transaction, and it is important that government officials reserve judgment until all of the facts have come to light.”

In asking the U.S. District Court in Washington to block the merger, DoJ alleged that the combination of the second and fourth largest wireless carriers would “remove a significant competitive force from the market,” given T-Mobile’s role as “the value option for wireless services,” and likely would subject consumers to “higher prices, less product variety and innovation, and poorer quality services.” - Paul Kirby, [email protected]

**************************************************** PUBLIC SAFETY OFFICIALS WORK TO EDUCATE ‘SUPERCOMMITTEE’

Members of the Public Safety Alliance said today they are working to educate lawmakers on the 12- member Joint Select Committee on Deficit Reduction - popularly known as the “supercommittee” - about the need for legislation to reallocate the 700 megahertz band D block to public safety and reserve billions of dollars to construct a nationwide public safety broadband network. The officials said at a Washington news conference that some members of the panel, which was mandated by the Budget Control Act passed in August, might not be as familiar with public safety issues as those on the House and Senate Commerce committees.

“Rest assured that those who might have influence in this, we’ll be in contact with them,” said Chris Moore, chief of the San Jose (Calif.) Police Department. PSA representatives had meetings scheduled today with several members of the supercommittee, Mr. Moore said.

Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

He said public safety officials expect the panel to recommend to Congress that incentive-auctions and D-block reallocation and funding provisions be included in a deficit-reduction package. The panel, which has been charged with finding an additional $1.5 trillion in deficit reduction, must submit its recommendations to Congress by Nov. 23. If Congress fails to enact the recommendations, without amendments, by Dec. 23, mandatory cuts across broad categories of spending would occur.

But public safety officials, who had hoped Congress would pass D-block reallocation and funding legislation by the 10th anniversary of the 2001 terrorist attacks, haven’t given up hope of getting the Public Safety Spectrum and Wireless Innovation Act (S 911) through Congress. Mr. Moore said officials expect the Senate to take the bill up in late September or early October.

He acknowledged the difficulty of getting a reallocation bill through the House in light of the opposition of Reps. Fred Upton (R., Mich.) and Greg Walden (R., Ore.), the respective chairmen of the House Energy and Commerce Committee and its communications and technology subcommittee. However, Mr. Moore said there are areas of agreement.

“They understand the issue. They have a different mind-set on how to get there,” Mr. Moore said. “But as we continue to speak, we realize there is common ground,” on such issues as governance and funding. On the latter issue, he said, the sides “are getting closer,” he said.

During today’s news conference, public safety leaders cited the recent earthquake on the East Coast, Hurricane Irene, and Texas wildfires as events that have called attention again to public safety’s need for its own dedicated spectrum. “It’s important to know that the current system of having public safety use commercial broadband systems does not work,” said Al Gillespie, president of the International Association of Fire Chiefs. “We’ve seen graphic examples of that right here in this area just recently.”

Charles Dowd, deputy chief of the New York Police Department, called it “simply outrageous” that public safety legislation has yet to pass Congress only two days before the 10th anniversary of the terrorist attacks of Sept. 11, 2001. “Congress needs to get moving on this now,” he said. “We need to get this done now before the next disaster hits us.” - Paul Kirby, [email protected]

************************************************************************************ PATENT BILL PRAISED FOR JOB-CREATION POSSIBILITIES

Lawmakers applauding yesterday evening’s passage of the America Invents Act (HR 1249) by the Senate emphasized its job-creation possibilities.

The Senate’s defeat of several proposed amendments yesterday and subsequent passage of the bill in the same form that it had previously passed the House sends the bill next to President Obama for his Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

signature (TRDaily, Sept. 8). The measure would shift the U.S. from a first to invent system to a first inventor to file system, establish a first window post-grant review, and allow third parties to submit information related to pending applications.

Sen. Patrick Leahy (D., Vt.), chairman of the Senate Judiciary Committee and sponsor of a Senate version of the bill, said, “The America Invents Act is a true jobs bill at a time when we need it the most. After six long years of debate spanning three Congresses and two administrations, it is finally set to become law. This is bipartisan, commonsense legislation that will spur the innovation that drives the American economy.”

Chairman Leahy added that Rep. Lamar Smith (R., Texas), the chairman of the House Judiciary Committee and sponsor of the House version of the bill that passed both chambers, “has been a true partner in our joint effort to enact meaningful patent reform legislation.” Sen. Leahy also commended Sens. Orrin Hatch (R., Utah), Charles Grassley (R., Iowa), and Jon Kyl (R., Ariz.) “for their commitment to this important bill. The America Invents Act shows what we can accomplish when we cast aside political ideology, and work together for the American people.”

Chairman Smith similarly emphasized the lengthy, bipartisan effort to pass the legislation and the potential impact on jobs. “After more than six years of bipartisan efforts and negotiations, we have crossed the finish line on patent reform,” he said, adding that the measure is “the most significant change to U.S. patent law in 175 years, since the Patent Act of 1836. And when President Obama signs the bill into law, H.R. 1249 will be one of the most significant jobs creation bills enacted by Congress this year.”

Chairman Smith added, “The America Invents Act creates a better patent system for inventors and innovative industries. I thank Chairman Leahy for working with me to improve and turn around the House patent reform bill. This is a true example of bipartisan success that will benefit the American people.” He noted that the backlog of applications at the Patent and Trademark Office means that the “average wait time for patent approval in the U.S. is three years.” Rep. Darrell Issa (R., Calif.), chairman of the House Oversight and Government Reform Committee and, according to his office, the holder of 37 patents himself, said, “The America Invents Act will create new high-paying jobs and help grow our economy. The global race to make discoveries and get inventions into the marketplace first requires that American innovators have a streamlined patent approval process. For too many years, they didn’t. The system was slow, costly, and didn’t adequately protect the rights of intellectual property holders. This legislation changes that, and further defends patented entrepreneurs from being the target of job-destroying predatory lawsuits.”

Rep. Bob Goodlatte (R., Va.), chairman of the House Judiciary Committee’s intellectual property, competition, and the Internet subcommittee, said that the bill “will help encourage innovation, get Americans back to work and ultimately help grow our economy” and will lead to “better quality Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

patents” and fewer “litigation abuses,” while giving the PTO “the resources it needs to eliminate the almost 1 million backlogged patent applications.”

Senate Finance Committee Chairman Max Baucus (D., Mont.) said, “Unfair patents can give a small number of people a stranglehold on tax strategies that should be open to anyone. This bill will bring fairness to the system, and it will deter the use of tax shelters to evade the responsibility we all share.”

Sen. Grassley (R., Iowa), a senior member of the Finance Committee, said, “Tax strategy patents are on the rise. More and more legal tax strategies are unavailable or more expensive for more and more taxpayers. It’s important to protect intellectual property rights for true tax preparation and financial management . At the same time, we have to protect the right of taxpayers to have equal access to legal tax strategies. That’s necessary for fairness and tax compliance. We need more tax compliance, not less.”

Michael Petricone, senior vice president-government affairs at the Consumer Electronics Association, said, “The passage of the America Invents Act is an important step toward the creation of a 21st century patent system that will promote and safeguard innovation. This bill speeds the approval of patents and deters patent trolls and others who seek to abuse our intellectual property system and makes a number of changes that will improve the functioning of our patent system. It reforms a misguided law that allowed frivolous, innovation-chilling lawsuits in the event patent numbers were listed incorrectly on products.”

Mr. Petricone added that the legislation “allows the Patent and Trademark Office (PTO) to have better access to its own user fees,” although some opponents of the bill in its House version had argued that it did not provide as strong protection against “fee diversion” as did the Senate bill.

Mr. Petricone added, “At a time when Americans are innovating faster than ever, a fully functional patent system is fundamental to our economic success. The America Invents Act is an important step toward restoring common sense, encouraging innovation, and reducing harm by those using the present law to hurt our economy and productive companies.”

Software & Information Industry Association President Ken Wasch said,“The legislation makes critical, necessary patent improvements that will drive our country’s continued leadership in the software and information industries.” Scott Bain, SIIA’s chief litigation counsel, added, “The America Invents Act will enhance patent quality and encourage growth in sectors that are poised to create jobs and renew our economy.”

Industry analysts at Stifel Nicolaus & Co., Inc., predicted that the bill “will not prove to be the ‘game changer’ that many had sought, as proposals were eliminated or watered down.” - Lynn Stanton, [email protected] Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

************************************************************************************ DATA PRIVACY BILLS SLATED FOR SENATE JUDICIARY MARKUP

The Senate Judiciary Committee has scheduled three bills relating to data privacy and breach notification for markup at a Sept. 15 executive business meeting. The bills are the Personal Data Privacy and Security Act (S 1151), sponsored by committee Chairman Patrick Leahy (D., Vt.), committee member Charles Schumer (D., N.Y.), and privacy, technology, and the law subcommittee Chairman Al Franken (D., Minn.); the Data Breach Notification Act (S 1408), sponsored by committee member Dianne Feinstein (D., Calif.); and the as-yet-unnumbered Personal Data Protection and Breach Accountability Act, sponsored by committee member Richard Blumenthal (D., Conn.). S 1151 and S 1408 had been scheduled for markup yesterday (TRDaily, Sept.), but they were held over until next week at the request of committee ranking minority member Charles Grassley (R., Iowa) to provide more opportunity for review and to address issues raised at Sept. 7 cybersecurity hearing about the definition of “sensitive personally identifiable information” and other areas of concern, such as the possibility that an overly broad definition could lead to excessive notifications of consumers. The meeting is scheduled to being at 10 a.m. in Room 226 of the Dirksen Senate Office Building.

************************************************************************************ BLACKBURN TO HOST ONLINE PRIVACY ROUNDTABLE

Rep. Marsha Blackburn (R., Tenn.) is hosting a Sept. 14 roundtable discussion of online privacy issues in anticipation of the release this fall of two reports on the issue by the Commerce Department and the Federal Trade Commission. This is the second such roundtable discussion this summer for the vice chairman of the House Energy and Commerce Committee's commerce, manufacturing, and trade subcommittee. Other participants at the Sept. 14 event will be drawn from academia and policy think tanks. The roundtable is slated to run from 8 to 9:30 a.m. in Meeting Room North of the Capitol Visitors Center.

************************************************************************************ DHS REAUTHORIZATION MARKUP SET

The Senate Homeland Security and Governmental Affairs Committee has scheduled a markup for Sept. 14 to consider the first Department of Homeland Security reauthorization bill since the department opened in 2003. The markup is scheduled to start at 10 a.m. in room 342 of the Dirksen Senate Office Building.

Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

************************************************************************************ TELECOM REGULATION ************************************************************************************ GPS COALITION WEIGHS IN ON LIGHTSQUARED PROPOSAL

The Coalition to Save Our GPS said today that a proposal LightSquared, Inc., filed this week at the FCC “appears to be a positive step,” but it stressed that it wouldn’t adequately address interference to high-precision GPS receivers.

“While we are continuing to review this latest proposal by LightSquared, it appears to be a positive step toward reducing, for some devices, the harmful interference to GPS signals confirmed during testing of LightSquared’s earlier incomplete proposals,” the coalition said in a statement. “Even if additional testing confirms that LightSquared’s third proposal will reduce interference to some devices, it still leaves a huge gap because it does not claim to solve interference to high-precision GPS receivers, many of which were designed to use satellite services provided by LightSquared in the MSS band.”

The coalition added that LightSquared’s proposal must be validated with testing. “The Coalition remains concerned that LightSquared’s latest proposal, like its previous proposal, has not been adequately tested to ensure that GPS - a national utility upon which millions of American rely every day - would be safe from interference,” it said. “The proposal is based on testing results from the FCC- mandated Technical Working Group (TWG) study of LightSquared’s plans. However, the primary focus of the TWG tests was a spectrum configuration that LightSquared has now abandoned. The testing of the configuration that LightSquared now proposes to use - the lower 10 MHz of its spectrum - was only conducted on a limited basis shortly before the conclusion of testing. More complete testing is now needed to confirm the preliminary results on which LightSquared’s proposal is based.”

Under its proposal, LightSquared said it will limit the power levels that reach the ground from its base station, a step it says “would, based on actual testing data, definitely eliminate interference issues for the vast majority of receivers.”

Specifically, it said it will agree to the following power limits on the ground: -30dBm (decibels below 1 milliwatt) now, -27 dBm after Jan. 1, 2015, and -24 dBm after Jan. 1, 2017. It also said it will agree to provide a long-term satellite signal for a GPS augmentation link at a frequency near the top of its downlink band in the 1555-1559 MHz band, which it said would further reduce the chance of interference to precision receivers.

LightSquared said testing done by the working group mandated by the FCC shows that its proposed ground-level power limits would address nearly all cases of interference to GPS receivers - at least in the near term. For example, it said, 11 of 12 timing receivers were not susceptible to harmful Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

interference up to -27 dBm. Over the long term, new antennas with a filter can be installed to allow GPS timing receivers to protect against interference, it said.

Regarding high-precision devices, LightSquared said that 10 of 38 receivers that were tested “appear compatible” with the -30 dBm power level on the ground using the lower 10 MHz. It also outlined a road map to retrofit or upgrade precision receivers with a universal filter.

In a related development, Sen. Charles E. Grassley (R., Iowa), ranking member of the Senate Judiciary Committee, fired back yesterday at FCC Chairman Julius Genachowski for his refusal to provide documents related to LightSquared, Harbinger Capital Partners, which controls LightSquared, and Phillip Falcone, founder and chief executive officer of Harbinger. Mr. Grassley has raised concerns about possible White House influence in FCC actions regarding LightSquared and Harbinger.

In a July 26 letter to Sen. Grassley, Mr. Genachowski said the FCC follows “long-standing practice consistent with Congress’s own guidance with respect to document requests from individual members” (TRDaily, July 27). He cited the Congressional Oversight Manual and said the FCC will comply with requests from the chairmen of the House and Senate Commerce committees.

“Given the overwhelming criticism from a wide range of sources, especially about national security, the FCC has to act in a responsible and transparent way. Its persistent stonewalling only raises more questions and heightens suspicion regarding the FCC’s actions,” Mr. Grassley said in a statement. “With the national spectrum as a valuable resource, the FCC shouldn’t hide the ball. Without transparency, and with media coverage of political connections in this case, there’s no way to know whether the agency is trying to help friends in need or really looking out for the public’s interest.”

In a letter to Mr. Genachowski, Sen. Grassley said he “was extremely disappointed to read that the FCC refuses requests for information from any of the 533 Senators and Members of Congress who do not chair either the House or Senate Commerce Committee. Unilaterally deciding that 99.6 percent of the elected representatives in the legislative branch have no legitimate interest in requesting and receiving information from the FCC is a misguided and unsupportable claim. However, you cite no actual legal authority to support it. Instead, you merely reference a general statement from a Congressional Research Service (CRS) report regarding the role of Congressional Committees. Specifically, the line from the CRS report is, ‘[t]he most common and effective method of conducting oversight is through the committee structure.’ However, there are also less common methods of oversight that are no less legitimate. In fact, in a different section of the report that you cited, the report states ‘investigations and related activities may be conducted by . . . individual members.’

“The FCC also cites the portion of the CRS report stating, ‘[i]ndividual members have no authority to issue compulsory process.’ The phrase ‘compulsory process’ refers to a Congressional subpoena. However, subpoenas are generally a last resort only after voluntary requests have been refused. Most Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

of the information Congress receives does not require creating a legal obligation on the part of the agency to comply. Agencies should generally provide documents voluntarily to Members of Congress, especially if they would be required to produce the documents under the Freedom of Information Act anyway if requested by the general public. It is unprofessional, unreasonable, and downright odd for the FCC to demand compulsory process before providing what it would be obligated to produce under FOIA and what it should produce for the sake of transparency and accountability.”

The senator asked Mr. Genachowski to respond to additional questions by Sept. 22, including whether the FCC consulted with other government agencies before LightSquared was granted a conditional waiver by the agency in January (TRDaily, Jan. 26) or before the Commission approved the purchase of SkyTerra Communications, Inc., by Harbinger (TRDaily, March 29, 2010). He also asked whether any FCC employees performed or supervised GPS interference testing or received test results before the waiver was granted and, if so, what the test results were. An FCC spokesman declined to comment today on Sen. Grassley’s latest letter.- Paul Kirby, [email protected]

************************************************************************************ RUS TO IMPLEMENT 911 ELIGIBILITY FOR TELECOM LOANS

The Department of Agriculture today announced new interim eligibility requirements for the Rural Utilities Service's telecommunications loan programs that will allow borrowers to use the funding for advanced emergency communications facilities, including dual-use public safety/commercial wireless networks.

The interim eligibility requirements will take effect upon publication in the “Federal Register,” which is slated for Sept. 12. They are intended to codify provisions for expanding and improving 911 access and integrated emergency communications systems in rural areas that were part of the 2008 Food, Conservation, and Energy Act (better known as the 2008 Farm Bill). The “Federal Register” notice will ask for comments on the interim eligibility requirements by 60 days from the date of publication. RUS will weigh the comments in developing a final rule on eligibility requirements.

Congress had authorized for RUS to expand or improve 911 access and integrated emergency communications systems in rural areas in the 2002 Farm Bill as well, but the agency never proposed rules to implement that authorization.

Agriculture Secretary Tom Vilsack said, “Our telecommunications networks should work best when they are needed the most, and that is in times of emergencies. This change provides rural first responders with the tools they need to maintain mission-critical voice and broadband services during times of emergency or during natural disasters.”

Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

Under the interim rule, telecom loans could be used for facilities and equipment to expand, improve, or provide 911 access, integrated interoperable emergency communications, homeland security communications, transportation safety communications, or location technologies used outside an urban area. Facilities and equipment for integrated interoperable emergency communications include “multiuse networks that provide commercial or transportation information services in addition to emergency communications services.”

Entities eligible to apply for telecom loans for those purposes include “any entity eligible to borrow from the RUS” (typically, telecom carriers), as well as state or local governments, Indian tribes, and “[a]n emergency communications equipment provider that in the sole discretion of RUS offers adequate security for a loan where the State or local government that has jurisdiction over the proposed project is prohibited from acquiring debt.”

The interim rules state that RUS will consider “the extent to which the emergency communications capability or emergency communications benefits already exist in the affected area and the need expressed by the proposed user of the emergency communications technology.” RUS would not consider an application to upgrade 911 facilities by competing carriers in the same geographic area “to be automatically duplicative,” but “the carrier’s competitive situation will be a relevant consideration in evaluating the ability of a service provider to repay their loan,” the interim rules say. Shirley Bloomfield, chief executive officer of the National Telecommunications Cooperative Association, applauded the announcement, which she said “underscores the necessary and complementary aspects of wired and mobile networks to ensure safety and security throughout the nation as RUS Administrator [Jonathan S.] Adelstein emphasized that fiber backhaul networks provided by rural telecom companies are necessary to carry critical mobile voice and data services to and from wireless towers and other mobile stations. In emergency situations, the entire rural telecom infrastructure is critical to essential communications.” - Lynn Stanton, [email protected]

************************************************************************************ AT&T FIRES BACK AT DOJ COMPLAINT, SAYS IT WANTS TO RESOLVE CONCERNS

In a court filing today, AT&T, Inc., T-Mobile USA, Inc., and AG fired back at the Department of Justice’s Aug. 31 complaint seeking to block the carrier’s $39 billion acquisition of T- Mobile, while AT&T said in a statement that it is interested in addressing DoJ’s concerns. In the filing, the companies said that DoJ doesn’t appreciate the “efficiencies” that the deal will generate and the intense competition in the wireless services market.

“We continue to seek an expedited hearing. At the same time, we have been and remain interested in a solution that addresses the DOJ’s issues with the T-Mobile merger. When these discussions occur they will be confidential and as such we won’t be commenting publicly,” AT&T said in a statement. Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

“We remain confident that we’ll reach a successful conclusion and look forward to delivering the merger benefits of additional wireless network capacity to improve service, expanded LTE deployment to 55 million more Americans, $8 billion in additional investment, and a commitment to bring 5,000 wireless call center jobs back to the .” Sources have said AT&T is likely to offer significant divestitures and other conditions to convince DoJ to withdraw its complaint, although it also faces a lawsuit filed by Sprint Nextel Corp. (TRDaily, Sept. 2).

In the 27-page court filing, AT&T, T-Mobile, and DT repeated many of the arguments they have advanced for why the transaction should be approved since it was announced in March (TRDaily, March 21), while denying arguments made by DoJ for why the U.S. District Court in Washington should block it. In asking the court to reject the merger, DoJ alleged that the combination of the second and fourth largest wireless carriers would “remove a significant competitive force from the market,” given T-Mobile’s role as “the value option for wireless services,” and likely would subject consumers to “higher prices, less product variety and innovation, and poorer quality services” (TRDaily, Aug. 31).

“Rather than substantially reducing competition, the combined firm will usher in more intense competition to an already vibrantly competitive market,” AT&T and the other companies said in the filing. “While acknowledging the importance of merger efficiencies in enhancing competition in its Merger Guidelines, the Department of Justice’s Complaint fails to come to grips with the significant efficiencies this transaction will generate.”

The filing added that DoJ’s lawsuit “similarly fails to depict accurately the state of competition in mobile telecommunications today, the dynamic nature of the wireless industry, or the procompetitive and pro-consumer impact of this transaction. Wireless competition is fierce: prices have declined steadily, output is expanding, technological innovation is occurring at an extraordinary pace, and new providers with innovative business models have successfully entered and expanded. All of this will continue, and likely increase, after the transaction. The Complaint largely ignores the significant competition from established providers such as Verizon Wireless and Sprint, innovative upstarts such as MetroPCS and Leap/Cricket, and strong regional providers like US Cellular and Cellular South, among others. The Department does not and cannot explain how, in the face of all of these aggressive rivals, the combined AT&T/T-Mobile will have any ability or incentive to restrict output, raise prices, or slow innovation. Nor can it explain how T-Mobile, the only major carrier to have actually lost subscribers in a robustly growing market, provides a unique competitive constraint on AT&T. It also fails to acknowledge that surging customer demand for wireless services drives carriers to invest, expand, and innovate.”

AT&T said T-Mobile has been losing subscribers for the past two years and “remains ‘stuck in the middle’ between larger providers like Verizon, AT&T, and Sprint, and lower-priced competitors like MetroPCS and Cricket.”

Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

Responding to individual issues raised by DoJ in its complaint, AT&T and the other companies said they disagreed about DoJ’s emphasis on the wireless market being national in scope. They also said DoJ’s Herfindahl-Hirschman Index analysis of the impact of the merger “is only one factor in merger analysis, and that a complete analysis must take full account of competitive dynamics and efficiencies not captured by such simplistic calculations.” The filing also said quotes cited in the DoJ complaint from T- Mobile and AT&T written materials “offered without context, is misleading and inappropriate.”

In response to today’s filing, John Taylor, a spokesman for Sprint Nextel, said, “AT&T’s court filing does not change the facts. This proposed takeover would create a clear wireless duopoly that could raise prices, stifle innovation and cost American jobs.”

U.S. District Court Judge Ellen S. Huvelle has ordered the parties in the case to appear for a Sept. 21 status conference, at which she said they should “be prepared to discuss the prospects for settlement.” - Paul Kirby, [email protected]

************************************************************************************ PATH TO INTERIM 911 SOLUTION FOR DEAF USERS DEBATED

Representatives of the disability community today expressed frustration at delays in rolling out an interim solution for deaf individuals to communicate with public safety answering points (PSAPs), while telecom industry officials said that no one segment involved in emergency calls can implement a solution by itself.

During a presentation by the Alliance for Telecommunications Industry Solutions on “candidate solutions” for an interim method of providing deaf callers with access to 911 services at today's meeting of the Emergency Access Advisory Committee, Sheri Farinha of the Norcal Center for Deaf and Hard of Hearing said that the time for evaluation “is done.” She noted that due to intelligence warnings about possible terrorist activity, “right now we are on high alert, and deaf people have no access. It’s pretty scary. I’m in a city right now where I have no access to someone who could help me.”

Committee member Brian Daley of AT&T, Inc., said that industry “fully appreciates” that solution is needed for today. However, frustrated potential users should keep in mind that “it’s more than a solution on a handset or a provision in an originating network,” he said. “It really needs to be an end- to-end solution. If there’s not an endpoint [that is, a PSAP] where [a call using] that solution can be received, it’s not a solution.”

According to the presentation, ATIS is working to develop a solution that will minimally impact the existing users and that will enable everyone to use the same nationwide phone number and method to reach emergency services through non-voice methods. One participant at today's meeting emphasized Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

the importance of having a solution that could be used for other purposes on a regular basis, so that in an emergency users would be familiar with it and able to use it quickly to contact the PSAP.

ATIS plans to select a solution or solutions next month and review that selection with consumers at a meeting in November, with technical documents to be ready in December so that they can be part of the FCC deliberations on this issue.

Potential solutions include variations on TTY, SMS (short messaging service), and relay services.

The Twenty First Century Communications and Video Accessibility Act of 2010 charges the EAAC with submitting to the FCC by December recommendations for ensuring people with disabilities have access to next generation 911 services. - Lynn Stanton, [email protected]

************************************************************************************ EC WANTS ECALL INSTALLED ON NEW VEHICLES IN 2015

The European Commission has adopted a recommendation that as of 2015 all new models of cars and “light vehicles” must be equipped with “eCall” technology, which automatically dials “112,” the European emergency number, in the event of a serious accident.

The recommendation urges member states to ensure that mobile phone network operators upgrade infrastructure to ensure that eCalls are “efficiently passed on to emergency services” and that they treat calls from eCall devices like other 112 calls by giving them priority and by not charging for them. The commission said its next step will be the adoption of specifications for upgrading emergency call centers.

“I am delighted . . . that we have taken the first step to ensure that millions of citizens will benefit from eCall, a system that can slash the time emergency services need to arrive at road accidents,” said Neelie Kroes, European commission vice president-Digital Agenda. “eCall will save hundreds of lives and reduce the pain and suffering of road accident victims.”

The commission said it hopes to have a “fully functional eCall service” in place across the European Union, as well as Croatia, Iceland, Norway, and Switzerland by 2015. - Brian Hammond, [email protected]

Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

************************************************************************************ EUROPEAN PARLIAMENT COMMITTEE DRAFTS RESOLUTION BACKING NET NEUTRALITY

The European Parliament’s Committee on Industry, Research, and Energy is considering a draft resolution promoting open Internet and net neutrality issues in advance of the European Council’s plan to adopt conclusions on those issues in December.

The draft resolution agrees with the European Commission on the “need of preserving the open and neutral character of the internet,” while adding that “based on the present analysis there is no clear need for additional regulatory intervention on net neutrality.” The resolution also calls on member states to ensure consistency in their approaches on net neutrality and stresses the importance of “cooperation and coordination” among member states and national regulatory agencies.

The draft resolution allows for “reasonable traffic management,” which it said was necessary to “ensure that the end user’s connectivity is not disrupted by network congestion” but also calls for “transparency” in traffic management. The draft also asks the commission to "assess the need for additional guidance on net neutrality to achieve competition and freedom of choice for consumers.” - Brian Hammond, [email protected]

************************************************************************************ ITU EYES ICT STANDARDS WORK TO COMBAT CLIMATE CHANGE

The International Telecommunication Union’s first Green Standards week wrapped up today with participants calling for closer collaboration on standards for information and communications technologies (ICTs) in an effort to combat climate change. Among the key areas targeted were developing a “globalized methodology to assess the environmental impact of ICTs, reducing e-waste, and the use of submarine cables for climate monitoring and disaster warning,” ITU said. “By adopting globally agreed standards - green standards - we will help to create a smarter, greener, planet, a planet which will be full of opportunity and potential and which will help the next generation reap tremendous rewards,” said ITU Secretary General Hamadoun Touré.

************************************************************************************ U.K.’S OFCOM EXTENDS REVIEW OF EMERGENCY CALLING

The United Kingdom’s Office of Communications (Ofcom) has extended for another six months its review of compliance with caller location requirements for emergency calls. Ofcom said that over the last six months it had “put in place more intensive monitoring of compliance" with the caller location requirements and "used our formal powers to collect data from the major communications providers and from the Call Handling Agents on a monthly basis.” Ofcom said it has had “discussions with several Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

providers on compliance issues,” but added that the “overall level of compliance across industry remains high and improving.”

************************************************************************************ CARRIER JOINS VERIZON WIRELESS RURAL PROGRAM

Chariton Valley Communication Corp., Inc., a subsidiary of Chariton Valley Telephone Corp., is the 11th company to sign an agreement with Verizon Wireless to participate in its LTE (long term evolution) rural deployment program. Chariton will lease Verizon Wireless’s 700 megahertz upper C block spectrum to build and operate an LTE network in five counties in northeastern Missouri.

************************************************************************************ FORMER TELCO CEO SENTENCED FOR BRIBERY

The former chief executive officer of Florida-based telco Latin Node, Inc., was sentenced to nearly four years in prison for paying bribes to former Honduran government officials, the Justice Department announced yesterday. Jorge Granados of Miami pled guilty last May to conspiracy to violate the anti- bribery provisions of the Foreign Corrupt Practices Act in connection with paying Honduran authorities more than $500,000 in bribes.

************************************************************************************ TELECOM BUSINESS ************************************************************************************ CISCO COMPLETES AXIOSS ASSETS ACQUISITION

Cisco Systems, Inc., has completed its acquisition of the AXIOSS service fulfillment software assets of Comptel Corp. for $31 million under terms of a deal announced last month. Cisco said the acquired assets will allow it to “extend network and service management technologies across its next- generation Internet Protocol network platforms, allowing service providers to quickly and efficiently launch new video, data, mobility and cloud services to their customers.”

************************************************************************************ COMVERSE REPORTS 17% REVENUE DECLINE

Comverse Technology, Inc., a New York-based provider of enhanced messaging and billing services to telecom carriers and network service providers, reported a 17% year-over-year revenue decline for the quarter ended July 31, to $182 million. The company's profit margin, however, improved, as the company reported operating income of $9.5 million for the most recent quarter, versus an operating loss of $13.2 million in the year-ago period.

Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

************************************************************************************ STUDY: UTILITY TELECOM SPENDING ON THE RISE

A study from the Utilities Telecom Council says that U.S. utilities could spend at least $3.2 billion on telecommunications equipment and services in 2011, up 3% from the total last year and marking a 21% increase over the 2009 level. Spending on two-way metering and associated networking, and transport networks is leading the pace, according to the survey.

************************************************************************************ CAPITAL MARKETS ************************************************************************************ BACKUPIFY RAISES $5M OF VENTURE FUNDING

Backupify, Inc., a Cambridge, Mass.-based developer of data protection and management services for cloud-based applications, has completed a $5 million financing, boosting its total raised since inception to $10.4 million. Investors in the latest funding effort include Avalon Ventures, General Catalyst, and Lowercase Capital. The company indicated it will use proceeds to fund product development activities.

************************************************************************************ PERSONNEL ************************************************************************************ ICANN INTERIM CFO

The Internet Corporation for Assigned Names and Numbers has appointed Xavier Calvez interim chief financial officer; the ICANN board must decide whether to confirm him permanent CFO. He was a division CFO at Technicolor Corp.

************************************************************************************ TDS APPOINTMENT

TDS Hosted & Managed Services LLC, a unit of TDS Telecommunications Corp., has named Terry Swanson chief executive officer of its VISI, Inc., and TEAM Technologies businesses, which provide data center services. He held positions with Sirius Computer Solutions, 3Com, Inc., and , Inc., among other firms.

Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

************************************************************************************ ATTUNE RTD CTO

Attune RTD, a Palm Springs, Calif.-based maker of electric utility smart grid equipment, has named Huiyou Zhu chief technical officer.

************************************************************************************ VGO COMMUNICATIONS CEO

VGo Communications, Inc., a Nashua, N.H.-based developer of robotic telepresence services, has appointed Peter Vicars president and chief executive officer. He held CEO posts at Chantry Networks and Tekelec, among other firms. Telecommunications Reports presents.... TRDaily September 9, 2011 Courtesy Paul Kirby and others, TR Daily

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