The House Commerce Committee last Thursday added three wireless amendments to a bill to protect consumers from unauthorized changes by their long-distance providers. The amendments are intended to stem the C-block debacle, ensure competition in three rural areas and set a deadline for the general wireless communications services auction.
The bill, which focuses on slamming, or the unauthorized switching of a long-distance carrier, is now headed to the House floor.
The C-block amendment effectively overturns the June 8 election date where many C-block personal communications services licensees chose to return their licenses instead of choosing restructuring options. The changes were not welcomed at the Federal Communications Commission where it is believed that the June 8 election options were “fair and equitable.”
The FCC would have preferred Congress pass bankruptcy legislation stating licenses cannot be considered property in bankruptcy litigation, said FCC Chief of Staff John Nakahata. Three large C-block licensees-Nextwave Telecom Inc., Pocket Communications Inc. and General Wireless Inc.-are in bankruptcy court.
Specifically, the House Commerce Committee directed that each licensee be given a full bidding credit in the C-block re-auction in an amount equal to the sum of all down payments, installment payments and interest payments. The bill also permits bidding credits to be freely transferred to any eligible entity and forbids the FCC from refunding any bidding credits that are not used in the re-auction.
Additionally, installment payments (which are due next month) would be suspended until after the re-auction. The FCC previously scheduled the C-block re-auction for March and the amendment codifies the specific deadline of March 24. The deferment pleased and surprised Michael W. Green, president and CEO of Carolina PCS Corp., who testified at a Sept. 12 hearing that “financing that was hard to find before June 8 has all but vanished.” Green said that the Commerce Committee action meant the “committee leadership understood what I said and took it to heart … [this will increase] the ability of Carolina PCS and the rest of the C-block to meaningfully move forward.”
The Commerce Committee also directed the FCC to reinstate the cellular licenses of three companies-Cellwave Telephone Services, Futurewave General Partners and Great Western Cellular Partners. These licenses were revoked by the FCC because they violated the foreign ownership caps in place at that time. The amendment requires the companies to meet certain requirements meant to enhance the educational and public-safety infrastructure. At the Sept. 12 spectrum management hearing an attorney for the companies, Philip L. Verveer, said the companies were willing to meet such requirements.
The FCC also is required, due to an amendment to the slamming bill, to auction off GWCS licenses within five years. Earlier this year, FCC Chairman William Kennard received congressional approval to postpone this auction due to lack of interest. The GWCS licenses are controversial and unpopular because of the interference that may occur with operations of the Department of the Navy.
The slamming bill has been given good prospects for passage this year because it is a consumer-orientated bill in an election year. With each passing day, however, the likelihood of enactment diminishes. The House bill and an earlier one on the Senate side would have to be reconciled before final passage.
