FCC Issues Telecom Rules for Digital-Phone Wiretaps (should clear up this hurdle to US rollout)
Bloomberg News
August 27, 1999, 1:55 p.m. PT
FCC Issues Telecom Rules for Digital-Phone Wiretaps (Update3)
(Adds industry comment in 8th paragraph.)
Washington, Aug. 27 (Bloomberg) -- The U.S. Federal
Communications Commission issued technical requirements that
telecommunications companies must meet to comply with a federal
law permitting wiretaps of digital-phone conversations.
The agency adopted six of nine specific requirements on the
Justice Department and FBI's ''wish list.'' Interim requirements
set up by the Telecommunications Industry Association must be met
by June 30, 2000, and the six standards spelled out today must be
met by Sept. 30, 2001.
The FCC's rules are intended to resolve a long-standing
dispute among the phone industry, law enforcement and privacy
groups over how far companies must go to comply with a 1994
federal wiretap law. A wide range of companies -- including long-
distance providers such as AT&T Corp., local phone carriers such
as Bell Atlantic Corp. and wireless phone companies such as
Vodafone AirTouch Plc -- are affected by today's ruling.
''We have carefully balanced law enforcement's needs against
the rights of all Americans to privacy, and the cost to industry
of providing these tools to assist law enforcement,'' FCC
Chairman William Kennard said in a statement.
Industry and law enforcement estimates on the cost of
compliance with the law vary widely, from $500 million to more
than $1 billion.
The 1994 Communications Assistance for Law Enforcement Act
required the telephone industry to adopt new technology so court-
ordered wiretaps of all phones, digital and analog, would be
possible. New digital technology that transmits telephone calls
in the computer code of ones and zeros is more difficult to tap
than conventional analog-phone technology. The industry and the
FBI have been feuding for years over how specific requirements of
the law should be met and who will pick up the tab.
Expand the Law?
Industry reaction over the FCC's rules was mixed.
The United States Telephone Association said it was
''extremely disappointed'' in the ruling, which it said would be
''overly costly for America's local phone companies.''
Industry groups also raised concerns. ''Compliance involves
one of the most complicated sets of features ever developed by
manufacturers,'' said Matthew Flanigan, president of the
Telecommunications Industry Association, which represents
equipment manufacturers. ''Today's decisions by the commission
will only add to the complexity and difficulty.''
The wireless industry endorsed the ruling. ''We are pleased
that all of the additional capabilities requested by the FBI were
not included in the FCC order,'' said Tom Wheeler, chief
executive of the Cellular Telecommunications Industry
Association. ''This is a strong indication that the FCC agreed
with CTIA and the other parties that the FBI sought to expand the
(law) rather than maintain the existing capabilities as Congress
directed.''
The ruling was praised by law enforcement officials.
''The FCC has carefully addressed the needs of law
enforcement to combat terrorism, organized crime and illegal drug
activity while ensuring important privacy protections,'' Attorney
General Janet Reno said.
Balancing Act
FBI Director Louis Freeh agreed. It goes ''a long way to
balance public safety, privacy and the needs of
telecommunications carriers to remain competitive in today's
market,'' he said.
The FCC's new rules cover a wide array of telecommunications
capabilities. For instance, they require phone companies to equip
service so that conference calls can be tapped. Companies must
also have equipment that allows authorities to learn the phone
number a person calls after dialing a 1-800 number to connect to
a long-distance carrier.
The agency decided against requiring companies to give law
enforcement officials automatic notice when a wiretapped customer
changes features of its service, such as call-waiting or voice
mail. The FBI had requested such notification.
Congress authorized as much as $500 million to improve
systems and equipment installed before 1995. The industry is
working to change that date. Last month, the House of
Representatives passed legislation that would move the date to
June 30, 2000.
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