[comp.dcom.telecom] Telecom in the news

wmartin@st-louis-emh2.army.mil (Will Martin) (06/23/89)

Two major telecom-related articles in the Wednesday, 21 June, St. Louis
Post-Dispatch:

Page 1: BELL MUST CUT PHONE RATES BY $101 MILLION

by Jim Mosley, Post-Dispatch Jefferson City Bureau

In a move that will result in savings to many telephone customers in the
St. Louis area, the Missouri Public Service Commission has ordered
Southwestern Bell Telephone Co. to reduce its annual revenue by about
$101 million.

The commission's order, made public Tuesday, will cut rates for
customers with Touch-Tone dialing and those who make long-distance calls.

The commission's 113-page decision will not affect the charges for basic
telephone service.

The changes will be effective July 1. The PSC's order calls for:

* A 30% reduction in rates charged customers with tone dialing. For
residential customers, the rate will decrease to $1.45 a month from $2.05.
For business customers, the rate will decrease to $3.10 a month from $4.40.

* A 20% cut in charges for long-distance calls made within the same area
code. The specific amount of savings will depend on the distance of the call.

* A cut in residential-service-connection charges of 23%. Under the order,
the rate will decrease to $36.50 from $47.40. Service-connection charges
for businesses will reduce by 38% -- to $52.25 from $84.25.

* Lowering access charges that Bell charges companies that provide
long-distance service. That provision should benefit consumers, because
long-distance companies pass on their access charges to customers, the
commission said.

The commission said the cost of long-distance calls between area codes
should drop by about 10% if long-distance carriers pass on their savings to
customers.

* Lowering "mileage" charges that are paid by rural customers. Currently,
the charges range from $2.05 a month to $16.55 a month, depending on where
a customer lives.

Under the commission's order, the charge will be $2.05 for all customers
who must pay it.

* Reducing rates for Wide Area Telecommunications Service, known as WATS,
and 800 service. The amount of those reductions will depend on the type of
WATS and 800 service a customer has and where the calls begin and end.

A Southwestern Bell official said Tuesday that the company was "deeply
disappointed by the size of today's revenue reduction."

"While it may make for some big headlines, the order does not provide for
changes in the regulatory framework that are required by today's
increasingly competitive telecommunications environment," Dan T. Hubbard, a
Bell assistant vice president, said in a statement.

The decision Tuesday stems from complaints filed last year against the
utility by the PSC staff and the state's Office of Public Counsel, which
represents consumers in utility-rate cases before the commission.

The complaints alleged that in 1987 Bell had earned more than $200 million
too much from its Missouri customers. Bell has about 1.6 million customers
in Missouri; about 750,000 of those customers live in the St. Louis area.

Both complaints had sought cuts in basic local service charges. Bell had
opposed any rate reductions; the utility disagreed that it had earned too
much in 1987 from its customers in Missouri. [Big surprise! WM :-)]

[This thing reads like it is heavily padded. I will summarize some
paragraphs here: the PSC said that Bell was doing better than when the
last rate case was decided in 1983, and tax law changes would help it too.
The basic rates weren't raised because they are still below the national
average. The Public Counsel was disappointed because the changes will
affect only a minority of customers (those with touchtone and who make LD
calls -- see, I TOLD you they were the minority! WM).]

The commission also rejected a plan by Bell that would have given the utility
the authority to annually raise local rates by an amount needed to keep pace
with inflation plus a 3% "productivity factor".      [I should hope so! -WM]
***End of article***

And, on page B1 (first page of the editorial section):

REACH OUT, TAP SOMEONE
Court Overrules Privacy On Cordless Telephones

by Tim Bryant

Is the privacy of your telephone conversation protected by federal law? Not
if you are using a cordless phone.

The 8th US Circuit Court of Appeals has ruled that the 21-year-old Omnibus
Crime Control Act does not prohibit interception of cordless phone
conversations.

In a unanimous opinion, a three-judge appellate panel said: "Courts have
not accepted the assertions of privacy expectation by speakers who were
aware that their conversation was being transmitted by cordless telephone."

The appeals court ruling, handed down last week in St. Louis, arose from a
case in Iowa in which criminal charges were filed against a man who had
been unaware that a family four blocks from his house was listening to his
conversations over his cordless phone.

The man, Scott C. Tyler, filed a civil suit over the matter and said that
he would press his case to the Supreme Court, if necessary.

"It's been a five-year battle, and this is not over by any means," Tyler said.

Tyler, 44, of Dixon, Iowa, spent 123 days in prison on two theft convictions
in Iowa. Authorities said Tyler had set up a dummy company to bilk two food
distributors out of $35,000 in goods.

The case began in 1983 when Richard and Sandy Berodt, who lived four blocks
from Tyler and his family, discovered that their cordless phone was picking
up conversations from the Tylers' cordless phone.

"Based on what they overheard, the Berodts suspected Scott Tyler of criminal
activity," the appeals court said in its opinion.

The Berodts called the Scott County Sheriff's Department in Davenport, Iowa,
and were asked to continue eavesdropping on the Tylers. Although no court
order was obtained, the Berodts tape-recorded some of the conversations with
equipment that Tyler said the sheriff's department had provided.

A jury convicted Tyler of theft, even though the judge refused to allow the
recordings as evidence.

In July 1985, Tyler and four members of his family filed a damage suit
against the Berodts, Scott County, the sheriff and a deputy. US District
Judge Harold D. Vietor of Des Moines, Iowa, ruled against the Tylers, saying
that federal wiretap laws, the 1968 crime control act and the Fourth
Amendment's protection against unreasonable searches and seizures did not
apply to cordless phone transmissions.

Scott County Prosecuting Attorney Thomas C. Fritzsche said he agreed with
Vietor's decision. He added that the appeals court's ruling puts the 8th
Circuit "in the mainstream" of recent decisions involving cordless phones.

"What gave Mr. Tyler some type of credibility was that there has been a split
in the case law that has looked at this type of case," Fritzsche said. "But a
whole recent trend of opinions has been away from that type of decision. All
the courts -- and there have been three or four of them -- have gone the
other way.

"Mr. Tyler has ideas that this is a case of burning social issues. It really
isn't."

Tyler had relied on a case that the 9th US Court of Appeals decided in 1973.
In that case, telephone conversations were disallowed as evidence when at
least one participant in a phone call used an ordinary phone line.

But among the cases that the 8th Circuit cited in its ruling against Tyler
was a 1970 case involving former Teamsters union boss Jimmy Hoffa. In that
instance, the 7th US Circuit Court of Appeals said there was no "expectation
of privacy" for conversations over a mobile telephone.

In a footnote to its opinion, the appeals court here said that the 1986
overhaul of federal wiretap laws had changed the definition of wire
communications to say that "such term does not include the radio portion of
a cordless telephone [call] that is transmitted between the cordless
telephone handset and the base unit."

"As a matter of federal law, we do not believe the Tylers had a justifiable
expectation of privacy for their conversations," the court said.

Tyler said it was time for the law to catch up with technology.

"Everybody is going to be walking around with a pocket phone in the next
five to ten years," he said. "The Fourth Amendment needs to be extended."

He said his cordless phone had been a Father's Day gift.

"Little did I know it would cause five years of hell in my life," he said.

Judges George G. Fagg of Des Moines, Gerald W. Heaney of Duluth, Minn., and
Frank J. Magill of Fargo, N. D., issued the opinion.
***End of Article***

[Whew! Fingers are tired! WM]

[There is also a sidebar item telling what a cordless phone is. I won't
bother typing that in; people here know that... :-) It does mention that
"modern cordless phones are equipped to use 10 channels ... Each channel has
a digital security code that can be programmed 256 different ways. The
result is a 2560-to-1 chance that two cordless phones with channels
programmed the same way will be within each other's broadcast range..."
That calculation of probability sounds a bit specious to me, but I'll leave
the rebuttal up to others for now... -WM]

One last comment -- I find it surprising that the article does NOT mention
the ECPA in any way. Of course, the court case has to be based on law in
effect at the time, but the ECPA has changed things since then, and I would
have thought that the writer and editor would have wanted to bring that
point out...

Regards, Will Martin

cowan@marob.masa.com (John Cowan) (06/27/89)

In article <telecom-v09i0210m01@vector.dallas.tx.us>,
	wmartin@st-louis-emh2.army.mil (Will Martin) writes:
>[There is also a sidebar item telling what a cordless phone is. I won't
>bother typing that in; people here know that... :-) It does mention that
>"modern cordless phones are equipped to use 10 channels ... Each channel has
>a digital security code that can be programmed 256 different ways. The
>result is a 2560-to-1 chance that two cordless phones with channels
>programmed the same way will be within each other's broadcast range..."
>That calculation of probability sounds a bit specious to me, but I'll leave
>the rebuttal up to others for now... -WM]

Utterly bogus.  The "256 different ways" refers only to control signals;
the security codes are designed to minimize the chance that the wrong base
station will respond to a handset's keystrokes (or that the wrong handset
will ring in response to a base's ring transmission).  Two systems sharing
the same channel and in an overlapping area will collide and allow eaves-
dropping; however, if set to different security codes, the bases/handsets
will ignore commands from the non-corresponding handset/base.
--
John Cowan <cowan@marob.masa.com> or <cowan@magpie.masa.com>
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Aiya elenion ancalima!