ICTA NOTES

On June 2nd, members of the ICTA Executive Committee (John Norcutt, President; Michael Katzenstein, Vice President; and Bob Pallé, Treasurer) and ICTA Executive Director, Bill Burhop met with the Senior Staff of the FCC Cable Services Bureau (CSB) to discuss their plans regarding a forthcoming rulemaking and to express our views about the issues involved. The following are Bill Burhop's observations and recommendations:

1. CSB is clearly preparing a draft rule that they intend to submit to the Commissioners by late summer or early Fall.
2. Their focus is on exclusive contracts, believing them to be an impediment to viewer choice if the contract duration is beyond a point required by PCOs to justify the investment.
3. They do not know what duration to set or what formula to use to calculate it.
4. They also recognize that state mandatory access statutes and perpetual contracts are anticompetitive and reinforce the franchised companies' monopolies, but CSB staff is uncertain if the FCC has authority to do anything about them.
5. It was agreed that further discussions would be held.
6. The Wireless Bureau is also preparing a draft rule which may be presented at the Commissioner's June 10 meeting, or soon thereafter.
7. That draft will probably be limited to telephony issues, not video, and will state that landlords cannot use exclusive contracts to prevent new providers from entering an MDU. The proponents of the rule (WinStar, Teligent, etc.) are primarily interested in the commercial rather than the residential market.

My recommendations are that the ICTA and the SBCA MDU Segment:

1. Immediately retain legal counsel to prepare a brief regarding FCC jurisdiction and alternative means to exercise it.
2. Communicate with appropriate Congressional leaders urging them to clarify their views that the Commission does have the authority to address mandatory access and perpetual contracts.
3. Prepare plan for a letter writing campaign to be kicked off at the July Convention/Conference.

The ICTA BOD will discuss this situation in a Conference Call on June 10 at 11 am.