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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: djane who wrote (6909)	8/27/1999 5:48:00 PM
From: David Wiggins	Read Replies (1) \| Respond to of 29987

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.