Minority ownership of commercial TV and radio stations increased 0.9% overall over last 2 years, but minorities’ share of TV market actually declined in 2000, NTIA said in report released by Commerce Secy. Norman Mineta Tues. “Unfortunately,” this was increase “that we must attribute mostly to an industrywide economic boom and an improved reporting methodology,” Mineta said, and “clearly there is reason for concern.” NTIA survey showed that consolidation in industry threatened survival of minority and single-station owners, he said.
PanAmSat asked FCC to defer deadline for filing comments on supplemental information provided by Intelsat in application to construct, launch and operate C-band and Ku-band satellites. PanAmSat wants comment period delayed until Commission has: (1) Acted upon Intelsat request, which PanAmSat opposes, for confidential treatment of documents filed along with supplemental information. (2) Determined whether Intelsat should be required to furnish additional relevant and material information.
Although she hasn’t formally announced her resignation, FCC Cable Bureau Chief Deborah Lathen confirmed she planned to leave Commission soon after its new Republican chairman took over. Lathen, who has run Cable Bureau since spring 1998 and presided over further deregulation of cable industry, told us Fri. that she hadn’t decided on departure date but “will ensure a smooth transition” to next bureau chief. She said she also hadn’t decided what she would do next. At Western Cable Show in L.A. in late Nov., Lathen said her plan was to complete AOL- Time Warner merger review and then “wiggle my toes in the sand.” She brushed off questions about her legacy, saying she wasn’t focusing on that and considered it “the height of arrogance” to spin others about one’s record of accomplishments. “The way you live your life is your legacy,” she said. “Everyone in Washington is always talking about their legacies… I've tried to have broader aspirations.”
FCC’s C- and F-block auction hit $16.07 billion Tues., with Verizon Wireless now accounting for more than half of bids with $8.38 billion. Aggressive bidding for N.Y.C. spectrum flirted with $2 billion mark, with Verizon submitting separate bids of $1.8 billion for 2 licenses there and Cingular Wireless-backed Salmon PCS $1.2 billion for 3rd. Salmon PCS, in which Cingular has 85%, noncontrolling stake, bid $3.1 billion, followed by AT&T Wireless-backed Alaska Native Wireless with $1.3 billion, DCC PCS with $960.8 million and VoiceStream with $960.8 million. Bidding for 422 PCS licenses began Dec. 12 and completed 55th round Tues. Bidding for N.Y.C. licenses so far has outstripped that for next largest wireless market of L.A., where Verizon and DCC PCS have bid closer to $515 million.
Verizon is installing more than 3,600 telecom circuits to help news media and govt. agencies handle Jan. 20 Inauguration in Washington. Facilities will range from standard voice lines to special video circuits for TV networks, company said. Verizon said it had received orders for more than 2,000 voice lines, 200 special video circuits, 12 audio circuits, 25 high-speed DS-1 data lines, more than 1,400 ISDN lines. Orders have come from domestic and international broadcasters, print media outlets, numerous govt. agencies including Secret Service. Fiber lines are being installed on Capitol grounds and Mall, including fiber circuit strung from bottom to top of Washington Monument for use by several broadcast outlets. Company installed temporary payphones at Lincoln Memorial for media. Verizon said that, like other participants, company was strapped for time because it couldn’t start taking orders and installing circuits until winner of election had been decided.
Hughes Electronics said Tues. its 4th-quarter revenue increased 21.3% to $2 billion from $1.69 billion a year ago. It also said its operating loss dropped to $121.2 million from $371.8 million year earlier. For year, Hughes had total revenue of $7.2 billion, up from $5.5 billion in year. Loss from continuing operations narrowed to $60.3 million from $283.7 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $153.8 million, beating analysts’ projections. Company also said it had added 527,000 net subscribers in 4th quarter, with backlog of 110,000 who have purchased systems and are waiting for installations. “This report increases the stakes and makes the company more attractive to buyers,” analyst said: “There were concerns that they were starting to lose momentum to cable, but this reaffirms that they are still growing.” GM is in talks with Rupert Murdoch over possible sale of Hughes Electronics for price industry reports say is $40 billion (CD Dec 27 p2).
Qwest said its customer service improved in 2000 with 98% of its installation commitments met when promised, representing best results in last 5 years, and 95% of its repair commitments met on time, best since 1996. In addition, more than 80% of service outages were repaired in less than 24 hours, up from 63% year ago, company said. It also announced line-sharing agreements with 4 competitors -- Contact Communications, Multiband Communications, New Edge Networks, NorthPoint Communications. Qwest said agreements would broaden availability of high-speed Internet and broadband services in its territory.
Several communications companies and associations donated maximum $100,000 to incoming President Bush’s Inaugural Committee, according to lists released by committee. Limit, imposed by Bush, far exceeds $1,000 legal cap on contributions to last year’s Presidential campaign. Jan. 20 Inaugural is expected to cost more than $20 million. Among those giving maximum: AOL, AT&T, CTIA, NBC parent GE, broadcaster Tom Hicks, Microsoft, Net2Phone, SBC.
Motorola plans to stop cellphone manufacturing operations at its Harvard, Ill., plant, resulting in loss of 2,500 jobs from company’s total work force of 130,000. Motorola, which issued series of earnings warnings late last year, said move was part of its strategy to consolidate manufacturing and bolster financial performance. Harvard campus, which will continue to have 2,500 employees, will focus on order fulfillment and new product sourcing. “We cannot competitively manufacture products when there is surplus global capacity at Motorola’s lower cost sites,” Motorola PCS Pres. Mike Zafirovski said. Company said it planned to halt manufacturing at Ill. site by June 30.
LCC International said it revised contract with XM Satellite Radio to include engineering support, initial operating and maintenance services and construction of smaller number of repeater sites due to shift to more tower-site-based network. LCC also will provide network monitoring and project management. Financial terms weren’t disclosed, but LCC said change would have $5 million negative impact 4th-quarter earnings.