> From: Jeff Pulver
> Date: Sat Mar 15, 2003 6:00:01 AM US/Pacific
> To: FWD [at] LISTSERV.PULVER [dot] COM
> Subject: [FWD] FBI, DoJ OPPOSE COMPANY’s EFFORT TO WIN REGULATORY
> FREEDOM FOR VoIP OFFERING
> Reply-To: Free World Dialup – The Future of Dialing
>
>
> Hi All,
>
> Below is a snip from a news story written by Tom Leithauser at TR.com.
> This wasn’t the kind of news story that I was expecting… 🙁
>
> Looks like we need to better educate some people in Government as to
> what
> FWD is all about. I will be holding a special meeting/session at Spring
> VON to discuss this. If you will be at Spring VON please let me know
> and
> I will provide you with the meeting details.
>
> If anyone has any concepts of a strategy for the best way to
> re-approach
> this, please let me know. Now may be the time we need to out to the
> media
> and make sure our story is known.
>
> You can read each of the referenced filings by visiting:
> ( http://gullfoss2.fcc.gov/prod/ecfs/comsrch_v2.cgi ) and entering:
> 03-45 in the Proceeding Box.
>
> Best regards,
>
> Jeff
>
> ———- Forwarded message ———-
> FBI, DoJ OPPOSE COMPANY’s EFFORT TO WIN REGULATORY FREEDOM FOR VoIP
> OFFERING
>
> The FCC’s Wireline Competition Bureau should reject an Internet
> telephony provider’s request for a declaratory ruling that its service
> is
> free from telecom regulations, say the Federal Bureau of Investigation
> and Department of Justice.
>
> The request from Pulver.com should be dismissed without prejudice or
> held in abeyance until the Commission completes work on two related
> proceedings that will determine the regulatory treatment of wireline
> broadband and cable modem services, the FBI and DoJ said today in
> comments filed in Wireline Competition docket 03-45.
>
> The broadband proceedings are important to the FBI and DoJ because
> their outcome may affect how telecom carriers will meet their
> obligations under the 1994 Communications Assistance for Law
> Enforcement Act (CALEA), which requires carriers to help authorities
> with wiretaps and other law enforcement activities.
>
> “If certain broadband telecommunications carriers fail to comply with
> CALEA due to a misunderstanding of their regulatory status, criminals
> may exploit the opportunity to evade lawful electronic surveillance,”
> the FBI and DoJ said.
>
>
>
> Other commenters, including Verizon Communications, Inc., and
> BellSouth Corp., agreed with the FBI and DoJ that the larger
> proceedings should be completed before the FCC rules on
> Pulver.com’s petition. But Cisco Systems, Inc., which supplies
> Internet telephony gear, expressed support for Pulver.com’s request.
>
> “The one course of action the Commission should avoid is to permit
> the regulatory status of computer-to-computer VoIP [voice-over-
> Internet protocol] to become unsettled,” Cisco said. Doing so could
> well slow the growth of IP networks generally.”
>
>

NEW YORK (AP) –Here’s another reason to check your telephone bill closely.

A subtle realignment this fall in the nation’s inscrutable tangle of phone systems could cause a surprising increase in what some consumers pay to call cell phones from traditional landlines.

The change, rooted in the different ways landline and wireless phone networks are laid out, means some calls to cell phones that were once considered local now incur higher toll charges.

For most people, the increases will be negligible. Verizon Inc., the largest regional phone company, estimates that in the 33 million households it serves, the average bill will rise pennies per month.

Even so, Verizon warned customers about the new policy in an insert with September phone bills and acknowledged that some people’s monthly charges could jump $10 or $20 unless they change their calling habits.

“This change may come as a shock to many wireline customers the first time they see it on their bills, and could cause callers to hesitate next time they reach for the phone and want to dial a wireless number,” said Travis Larson, spokesman for the Cellular Telecommunications and Internet Association, a trade organization for wireless carriers.

No serious trouble reported

The billing change doesn’t appear to have caused serious trouble where it already has been in effect, mainly in the West and Midwest.

“I’m not aware that this is an issue that we get a lot of consumer complaints on,” said Federal Communications Commission spokeswoman Meribeth McCarrick.

Why is this happening?

Area codes are divided into “rate centers” with their own number prefixes. Calls to nearby rate centers are considered local, while those to further rate centers generate intra-state or regional toll prices. Calls between more spread-out points count as long-distance.

Because of differences in how wireless networks are set up, wireless carriers don’t need to get phone numbers in every local rate center. So your cell phone could have a number from a rate center distant from your home.

For such customers, a call from home to their cell phone could incur per-minute toll charges.

To stimulate use of mobile phones, wireless carriers years ago got landline companies to treat such calls as local. Wireless carriers reimbursed landline companies for the lost toll revenue — a process known as reverse billing or wide-area calling.

Reverse billing diminishes

Reverse billing has diminished over time, largely because wireless companies acquired numbers in more rate centers as their customer base exploded.

For example, in New York state, fewer than 6 percent of wireless phone exchanges still employ reverse billing, said Michael O’Connor, a director of federal regulatory issues at Verizon.

Similarly, Sprint PCS estimates that wireless billing covers fewer than 5 percent of its customers, said Jack Weyforth, manager of carrier interconnection. AT&T Wireless spokeswoman Rochelle Cohen said “a very small percentage of our customers have these sorts of phone numbers.”

On Nov. 24, reverse billing will begin to die altogether. The FCC is changing how phone numbers are allocated to different providers and in many cases reverse-billing systems aren’t sophisticated enough to deal with that switch.

The final blow to reverse-billing should come next year as consumers get “number portability,” the right to keep their mobile numbers if they switch carriers.

Michael Altschul, general counsel for the cell-phone industry group, said local phone companies asked regulators in several states to let them kill reverse billing.

That forced wireless companies to establish their own connections in local rate centers by leasing costly equipment and space from landline companies, he said.

“We’re disappointed with the (local phone companies) that they’re discontinuing this service, because it was meeting the needs of customers,” added Diane Rainey, a spokeswoman for wireless carrier Nextel Corp. Unclear how many affected

Sam Simon, chairman of the Telecommunications Research & Action Center, a consumer rights group, said complexities of the phone system make it unclear how widespread the new charges will be.

No phone company would give details on where people could be affected.

All nine states where BellSouth Corp. is the local phone provider got rid of the old billing system by Oct. 1, spokesman Jeff Battcher said.

In the 14 states served by Qwest Communications International Inc., the change is scheduled to take effect in November, though Qwest is working on ways to extend the old system wherever possible, spokeswoman Carey Brandt said.

Many SBC Communications Inc. customers experienced the change several years ago. People in Texas, Oklahoma, Arkansas, Missouri and Kansas will begin to see it this fall, SBC spokesman Kevin Belgrade said.

Copyright 2002 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

———–

Reuters Business Report VoiceStream Proposes Cingular Merger -WSJ

NEW YORK (Reuters) – Wireless phone provider VoiceStream has proposed a merger with rival Cingular Wireless, in a bid to compete with market leader Verizon Wireless, the Wall Street Journal reported on Tuesday. ADVERTISEMENT

While the two companies have yet to agree on terms, the Journal cited people close to the situation as saying VoiceStream has approached Cingular about merging the two companies in a deal that would leave Cingular as the controlling shareholder.

The proposal, just weeks after VoiceStream sought a similar partnership with AT&T Wireless Services Inc. (NYSE:AWE – News), comes amid signs of government support for consolidation in the $67 billion cellular-phone industry, the paper said.

The Journal said the talks are at an early stage and could break down before any deal.

And any transaction between Cingular and VoiceStream could face regulatory hurdles as well as opposition from either of Cingular’s owners, SBC Communications Inc.(NYSE:SBC – News) and BellSouth Corp (NYSE:BLS – News).

VoiceStream, which is owned by Deutsche Telekom AG (XETRA:DTEGn.DE – News), also continues to hold on-again, off-again discussions with AT&T Wireless, although the two companies failed to agree on terms earlier this summer.

VoiceStream and Cingular declined to comment to the Journal. The companies could not be reached by Reuters.

———–

http://dailynews.yahoo.com/htx/nm/20000713/wr/sprint_worldcom_dc_1.html

Thursday July 13 12:44 PM ET WorldCom, Sprint Call Off $120 Billion Merger By Ian Simpson NEW YORK (Reuters) – Long-distance telephone powerhouses WorldCom Inc. (NasdaqNM:WCOM – news) and Sprint Corp. (NYSE:FON – news) canceled their $120 billion merger plan on Thursday in the face of opposition from U.S. and European regulators. Analysts said the collapse of the deal makes both companies attractive takeover targets, especially for foreign firms seeking a U.S. foothold, but Sprint’s top executive declared that his company was not for sale. On Wall Street, investors reacted to the news that the merger was off by bidding up shares of WorldCom. The No. 2 U.S. long-distance company was up 2-7/8 at 47-3/8 in midday trade on the Nasdaq stock market and was among the most active issues. By contrast, shares of Sprint, the No. 3 U.S. long-distance company, were off 15/16 at 46-3/8 on the New York Stock Exchange. WorldCom, based in Clinton, Miss., and Sprint, based in Kansas City, Mo., said they had called off the merger because of pressure from the U.S. Justice Department and the European Union. The regulators moved to block the deal two weeks ago, saying a merger would cripple competition in the Internet and long-distance telephone markets. In a statement, WorldCom Chief Executive and President Bernard Ebbers said the collapse of the deal would mean less innovation and choice, and higher rates for residential telephone service. The companies also said the conditions for the deal demanded by the Justice Department “would compromise the customer and financial benefits of the merger.” But Joel Klein, head of the Justice Department’s antitrust division, hailed the collapse of the merger pact. “The merger would have led to higher prices, lower service quality and less innovation for millions of American consumers and businesses,” he said in statement. Sprint Chairman and Chief Executive William Esrey said Sprint was not discussing a merger with any other company. ”We’re talking to no one. We have talked to no one,” he said in an interview on business TV network CNBC. “Sprint is not for sale,” he declared. Analysts said WorldCom and Sprint could become takeover targets for international companies seeking a foothold or a bigger presence in the U.S. market. Germany’s Deutsche Telekom AG (DTEGa.DE) (NYSE:DT – news) tops the list of prospective bidders. Also believed to be interested are Nippon Telegraph and Telephone Corp. (9432.T) (NYSE:NTT – news) and France Telecom (FTE.PA) (NYSE:FTE – news). “Deutsche Telekom has been visibly on the prowl,” said Richard Klugman, an analyst with Donaldson, Lufkin & Jenrette. ”I don’t know how to handicap who they are going to get, but certainly WorldCom and Sprint would be high on their list.” The German company wants to get into the U.S. market mainly to add customers and gain access to a fiber-optic network and Internet backbone. It has been linked to a string of possible targets, including Sprint and Qwest Communications International Inc. (NYSE:Q – news). Published reports earlier this week said Deutsche Telekom had approached wireless carrier VoiceStream Wireless Corp. (NasdaqNM:VSTR – news) about a takeover. Local phone company BellSouth Corp. (NYSE:BLS – news) could also re-emerge as a suitor for Sprint, analysts said. BellSouth bid for Sprint last autumn. Sources have said WorldCom could shed its consumer long-distance business and focus on the more lucrative segment of providing data, Internet and international communications services to corporations. The WorldCom-Sprint merger plan sparked controversy from the moment it was announced last October. The head of the Federal Communications Commission said it would hurt the robust competition that had driven down long-distance rates.

– Dennis Bell.

-Ian.

============================================================================http://dailynews.yahoo.com/h/nm/19991005/bs/telecoms_sprint_12.html

NEW YORK (Reuters) – MCI WorldCom Inc. (Nasdaq:WCOM – news), the second-biggest U.S. long-distance company, Tuesday said it would buy No. 3 carrier Sprint Corp. (NYSE:FON – news) in a deal valued at $129 billion, by far the biggest corporate takeover ever.

The combined company, to be called WorldCom, would have about 30 percent of the $90 billion U.S. long-distance market and create a huge rival to market leader AT&T Corp. (NYSE:T – news) .

MCI WorldCom muscled aside a last-gasp bid for Sprint from BellSouth Corp. (NYSE:BLS – news), the dominant local telephone company for the southeastern United States.

MCI WorldCom said in a statement it would pay $76 in stock for each Sprint share. Clinton, Miss.-based MCI WorldCom said each share of Sprint’s wireless unit, Sprint PCS Group, would be swapped for one new WorldCom PCS tracking stock and 0.1547 share of MCI WorldCom common stock.

The exchange ratios give the stock portion of the deal a value of $115 billion. MCI WorldCom also will assume $14 billion in debt and preferred stock, giving the deal an overall value of $129 billion, the company said.

At that price the deal dwarfs all others to date. That includes oil giant Exxon Corp.’s (NYSE:XON – news) planned $80 billion purchase of rival Mobil Corp. (NYSE:MOB – news) and the $72 billion deal pending between regional phone companies SBC Communications Inc. (NYSE:SBC – news) and Ameritech Corp. (NYSE:AIT – news) .

Shares in Westwood, Kan.-based Sprint closed Monday at 60 on the New York Stock Exchange. They were up at 63-1/2 in pre-opening trade on the Instinet electronic broker system. MCI WorldCom’s offer represents a 27 percent premium over Monday’s closing price.

MCI WorldCom slipped to 68-3/8 from a close of 71-10/16.

MCI WorldCom had wanted Sprint to gain its long-distance service and especially to fill its need for a wireless system. Sprint’s fast-growing wireless network covers about 180 million Americans.

“WorldCom will have the capital, proven marketing strength and state-of-the-art networks to compete more effectively against the incumbent carriers domestically and abroad,” MCI WorldCom President and Chief Executive Bernard Ebbers said.

MCI WorldCom said the boards of the two companies had approved a definitive agreement to merge.

The deal is expected to close in the second half of next year and is not expected to hurt WorldCom’s earnings per share, the company said.

When the merger is completed, Sprint Chairman and Chief Executive William Esrey will become WorldCom chairman. MCI WorldCom’s Ebbers will become president and chief executive of the combined company.

In a separate statement, Germany’s Deutsche Telekom AG (NYSE:DT – news) said it would sell its 10 percent stake in Sprint for about $9.2 billion.

France Telecom (NYSE:FTE – news) also holds a 10 percent stake in Sprint.

The deal may face rigorous regulatory scrutiny.

SBC, whose deal for Ameritech is being reviewed by regulators, said in a statement that it expected regulators to ”bring equal vigor and zeal to reviewing the MCI WorldCom-Sprint merger as they have other transactions.”