Financials: Nortel will cut work force by 4,000, although its overall staff level will remain same through new hires in high-growth areas, company announced Thurs. Cuts represent 4% of Nortel’s 94,500 employees… Time Warner Telecom completed acquisition of GST Telecom assets for $690 million. GST filed for Chapter 11 bankruptcy protection in May.
Fixed satellite service (FSS) spectrum flexibility is needed because future requirements of satellite companies can’t be anticipated and spectrum flexibility is prerequisite to efficient operation of satellite systems, PanAmSat said in comments to FCC on proposed plan by Fixed Wireless Communications Coalition to change Commission rules on access to spectrum for satellite services (CD Jan 10 p4). In filing that supported position of Satellite Industry Assn. and Satellite Bcstg. & Communications Assn., PanAmSat said FSS spectrum flexibility was required and Commission should abandon proposal to add demonstrated-use requirement.
“Avoiding a Pearl Harbor in space” and deterring adversaries were among priorities Space Commission identified in report it released Jan. 11 in Washington. “The number of pagers and cellphones in this room speak to the importance” of protecting satellites, Adm. David Jeremiah (USN-Ret.) said at hearing. Gen. Ronald Fogelman (USAF-Ret.), who is commission member, said report outlining vulnerabilities of satellites including communications satellites was “nothing new.” William Graham, chmn. of National Security Research, said “any deliberate attack could produce similar or worse results” than near-total loss of communications for hours or days, as has happened in accidental failures. Robert Davis, pres. of R.V. Davis & Assoc., said commercial use of global positioning system (GPS) highlighted need to solve structural problems with Defense Dept. Among recommendations, commission members cited establishing Space Corps or new branch of military devoted to space. Gen. Howell Estes (USAF-Ret.) said if critical satellite had stopped transmitting when he led space command, “I wouldn’t have had a clue” what was wrong.
Arianespace Chmn. Jean-Marie Luton said company lost more than $190 million in 2000, citing operation of Ariane 4 and Ariane 5, training employees to operate both rockets, raising newer rocket’s payload. Production costs for 2nd series of Ariane 5 rocket will be 35% less than first series, InfoWest spokesman said. Company’s losses were “not a surprise,” he said, adding that it expected to break even in 2001. Arianespace also committed money to building S5 preparation building to allow company to perform all maintenance at launch facility in Kourou and expected building to come into service in April, which spokesman said would save company more money this year.
Use of wireless Web portals is projected to grow to 350 million mobile customers in 2005 from current 4 million, research firm Strategy Analytics said. It said revenue from wireless portals would be determined by ad sales and mobile commerce transactions.
VisionStar’s proposed transfer of Ka-band satellite license to holding company jointly owned with EchoStar is part of long- range goal to provide high-speed Internet service to rural and remote areas of U.S., CEO Shant Houvnanian told us. “We want to bring 2-way high-speed Internet service to the dark side of the digital divide.” Role of EchoStar also will increase if FCC approves, Houvnanian said. “They will get a larger ownership stake, but I will still be the significant shareholder.” VisionStar/EchoStar partnership filed application with FCC Dec. 15 to transfer control of orbital slot at 113 degrees W over Continental U.S. from VisionStar control (CD Jan 9 p8). Houvnanian said he owns 51%, EchoStar 49% of VisionStar/EchoStar. “I've personally invested a lot of money in this project to keep it going,” he said. “This is a complete start-up” company. VisionStar is one of several companies allocated Ka-band slots in May 1997 by Commission (CD May 23 p5) that have yet to launch satellite or service. Houvnanian said since contracting with Orbital to build satellites, VisionStar had exercised option in contract that allowed it to contract with Lockheed Martin to expand scope of service by building larger satellites.
FCC took steps at its meeting Thurs. to make it easier for public safety agencies to communicate with one another on emergency scenes, including setting rules for interoperability channels in 700 MHz public safety band. In unanimously approved report and order, agency adopted standard for interoperability channels as recommended by Public Safety National Coordination Committee (NCC) chaired by Kathleen Wallman. For general use channels in 24 MHz designated for public safety in 700 MHz band, FCC adopted notice of proposed rulemaking (NPRM) seeking comments on migration path to more efficient standard. But to encourage early use of 700 MHz, some of which still is occupied by analog broadcasters, order indicated Commission wouldn’t mandate use of that more efficient technology before 2006.
Seven states have requested more delegated authority from FCC to allow them to implement number conservation measures. FCC is seeking comments on requests of Ind., Minn., Mo., Okla., Tenn., Vt., W.Va. Comments are due Feb. 12, replies Feb. 28 (CC 96-98, 99-200).
U.S. Copyright Office started 6-month negotiation period for adjustment of royalty rates and terms for performance of copyrighted sound recordings by preexisting subscription services and satellite digital audio services. Negotiation period began Jan. 9 and those who want to participate must notify Copyright Office by Jan. 31.
DirecTV and TiVo will formalize agreement for video-on-demand (VoD) within 60 days that will use portion of hard drive in current combination receiver, DirecTV Global Digital Media Pres. Lawrence Chapman said. Meanwhile, DirecTV/AOLTV product has been postponed until later this year, marking 2nd time service debut was delayed.