Paxson Communications urged broadcasters Fri. to oppose Verizon Communications request that FCC postpone upcoming 700 MHz auction at least 2 months, but ideally until Sept. 6. Auction, which had been set for last Sept. 6, now is scheduled for March 6, with short-form applications due Feb. 2. FCC Wireless Bureau is seeking comments on request until Jan. 24, after Verizon Wireless wrote to Bureau Chief Thomas Sugrue, arguing that if auction were held as scheduled, participants wouldn’t have enough time to assess their interest in acquiring additional spectrum, in part because C-block PCS auction that started Dec. 12 was continuing (CD Jan 19 p9). Paxson urged broadcasters, particularly incumbents in Ch. 60-69 spectrum, to oppose request for delay, noting that bidding already had been delayed 3 times. “We cannot support a 4th delay of the 700 MHz auction,” Chmn. Lowell Paxson said. “This most recent action by Verizon will put the continuation of the information revolution in the U.S. in grave jeopardy.”
SAN JOSE, Cal. -- Standards for broadband wireless access (BWA) are necessary but shouldn’t delay “time to market” for new developments in BWA technology, said Sheldon Fisher, asst. vp- architecture and technology for Sprint’s Broadband Wireless Group in Wireless Communication Assn. (WCA) keynote here Fri. Industry “can’t wait” for standards process that takes 12-18 months, Fisher said, and such delays will impede innovation. Standards don’t “destroy innovation,” said WCA Task Force on Standards Chmn. Gary Smith of WorldCom, but standards process should be sensitive to industry’s rapidly developing new technologies.
Ohio PUC found Ameritech Mobile and AirTouch Cellular guilty of violating regulatory requirements that they separate their wholesale and retail operations and offer their wholesale services on nondiscriminatory basis to all cellular resellers. PUC in case 93-1758-RC-CSS ruled on complaint by wireless reseller Cellnet alleging Ameritech and AirTouch had provided their retail reseller affiliates with favorable rates and terms that they denied to unaffiliated resellers, allowing affiliates to unfairly undercut Cellnet in retail markets. PUC in 99-page order dismissed companies’ multiple defenses and held them guilty of discriminating against Cellnet. Agency acted after determining it had jurisdiction because case involved rate discriminatory conduct, not rate challenge. PUC ordered companies to cease unlawful conduct, but since this was companies’ first offense it declined to impose any penalties. In another matter, PUC set Feb. 7 hearing to collect public comment on whether customers in Columbus 614 area code preferred geographic split or overlay for code relief. Split plan would put Columbus and its outer suburbs into separate area codes. Current code is projected to run out of numbers in fall 2002.
Women in Cable & Telecom (WICT) expressed concern about FCC’s recent report showing that women held fewer jobs in cable industry than year ago (CD Jan 18 p10). Of 2,752 overall jobs lost in cable 1998-1999, group said women lost “a startling 2,025, or 74%.” WICT called it “even more troubling” that women made up “just 34.4% of officials and managers for cable operators” in 1999, down from 35.2% in 1998 and 36% in 1997. Group warned again that if trend continued, “it would begin to cripple” cable industry as it competed with other industries for top talent. It urged cable operators to “make the fundamental changes that will address these employment issues” and provide women with more female role models, more opportunities for advancement and greater recognition of company contributions.
Independent Cable & Telecom Assn. changed its name to Independent Multi-Family Communications Council (IMCC) and elected new 31-member board. Group, which represents private cable operators, multifamily dwelling unit (MDU) owners and product manufacturers and vendors, said it made switch to focus more on “improved products and services for multifamily community residents” and MDU owners. IMCC said it would continue pushing for repeal of cable mandatory access laws in states and elimination of “barriers to competition” at FCC.
Ind. Utility Regulatory Commission (IURC) opened formal investigation into Ameritech’s massive service problems last year, as had it promised to do earlier this month when informal negotiations on expanded customer compensation for outages collapsed. IURC Exec. Dir. Michael Leppert said agency’s previous informal approach “has run its course. It’s time we take the next logical step” to examine Ameritech’s customer service and network management practices, and how they contributed to last year’s service debacle. Up to now, IURC has concentrated its efforts on getting quick improvement in Ameritech phone service rather then seeking reasons for mess. IURC said Ameritech service performance, although improved, still hadn’t met state’s service quality standards, and said investigation was necessary to build case it could use to petition state courts for fines against company. Ameritech spokesman said company wasn’t surprised by probe, but stood by its efforts to improve service and its commitment going forward to keep up its service quality. Consumer watchdog Ind. Citizens Action Coalition applauded IURC action but predicted Ameritech would be “very formidable adversary” as investigation proceeded. IURC will set procedural schedule in next few weeks.
AOL Time Warner announced plans to repurchase up to $5 billion of merged company’s common stock and file universal shelf registration statement for $10 billion. After first board meeting Thurs., AOL Time Warner said it would begin buyback next month, making purchases from time to time over next 2 years, depending on market conditions. At same time, it will use $10 billion shelf registration to cover issuance of debt securities, common stock, series common stock, preferred stock, warrants. Company said moves would give it “greater financial flexibility” to take advantage of marketplace opportunities, boost return on capital, build shareholder value. Separately, AOL Time Warner CEO Gerald Levin donated $10 million to new National Cable Television Center and Museum in Denver in honor of his late son, Jonathan, N.Y.C. high school teacher murdered several years ago.
Comsat said it won 4-year, $1 million contract to provide high-speed (128 kbps) data and voice satellite communications to Radisson Seven Seas Cruises (RSSC) Seven Seas Mariner.
Research group Allied Business Intelligence (ABI) projected in report released Fri. that wireless location-based services revenue would grow to $40 billion in 2006 from $1 billion in 2000. ABI analyst Frank Viquez attributed expected growth, in part, to FCC’s Enhanced 911 requirements that mandate automatic location identification-capable wireless gear. ABI report said Sprint’s plan to deploy GPS chips for location-based technology in its handsets starting in mid-2001 would be boost to industry if handsets were delivered on time.
Fifth U.S. Appeals Court, New Orleans, ruled 2-1 that La. PSC wasn’t immune under 11th Amendment from federal judicial review of its decisions on carrier interconnection agreements under Telecom Act. Court was ruling on AT&T challenge to PSC arbitration decision in interconnection dispute with BellSouth. Fifth Circuit held that La. PSC had waived its sovereign immunity rights when it agreed to arbitrate interconnection dispute under terms of Telecom Act. Court also ruled that “ex parte Young” doctrine applied in cases involving states’ alleged contraventions of Act’s Sec. 251 and 252. That doctrine allows federal lawsuits against states to halt violations of federal law. This was 4th federal appeals court to deny states 11th Amendment protection for their interconnection contract decisions. Previous decisions against states have come from 6th, 7th and 10th Circuits. U.S. Supreme Court last Oct. refused to review matter.