Interim committee of W.Va. legislature, studying ways to regulate telemarketers, filed report that recommended no legislation for 2001 session. Group had considered restrictive measures such as state “no-call” list, but concluded existing laws were sufficient to address any telemarketing problems. Several state legislators said they planned to disregard panel’s report and would be introducing telemarketing bills this session.
RCN Corp. insiders bought 1.538 million shares on open market Dec. 22-28. Purchases were made independent of any company- sponsored plan, company said. Board member Walter Scott bought one million shares, Chmn.-CEO David McCourt 500,000, other board members and officers 38,000.
LAS VEGAS -- Broadcasters offering data services are “very comfortable” that they can have good data business without running afoul of congressional pressure for HDTV, Matt Jacobson, exec. vp of iBlast, told CES convention here. Geocast Vp John Abel went further, saying hearing by House Telecom Subcommittee Chmn. Tauzin (R-La.) to pressure broadcasters on HDTV was “baloney.” Abel, former NAB exec. vp responsible for HDTV, also said still- undisclosed DTV test results “tilt in favor of staying the course” for using VSB-based standard.
AT&T shares closed at $22.50, up 12.15% after news that it’s stock was upgraded to strong buy by Morgan Stanley from neutral in report issued Tues. Morgan Stanley, saying it saw better times ahead for AT&T, established 12-month target price of $35 for company, saying stock now was worth $35-$40 per share after falling 66% in 2000, with AT&T Wireless continuing to show strong growth. AT&T cable prospects also were seen as positive. Morgan Stanley remained cautious on long distance business, figuring valuation at zero at current stock price despite generating estimated $15 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) this year, citing company’s debt load of $60 billion. Brokerage said break-up of company would act as performance catalyst over next several months. It also said plan to distribute rest of AT&T Wireless to shareholders plus aggressive asset disposal program should prove beneficial. While acknowledging AT&T’s “challenging” credit position, Morgan Stanley identified its steps to improve situation such as raising nearly $10 billion from NTT DoCoMo, completing $25 billion debt facility, cutting dividend 83%. It said outlook for 4th quarter foresaw AT&T Wireless “looking good,” adding 850,000 subscribers and generating $2.596 billion in revenue, up 38.2% from a year ago. Beyond 4th quarter, broadband IPO outlook still was seen as problem, with regulatory hurdles to overcome and improvement needed in operating and financial metrics. Cable revenue was expected to grow 9-9.5% on pro forma basis in quarter and 10.5-11% in year, including Comcast swap. By end of year, Morgan Stanley said it expected AT&T Broadband digital penetration of 18.5%, largest digital footprint in U.S., with 1.15 million high-speed data subscribers, 550,000-570,000 residential telephony customers and almost 10% penetration, with revenue of $70 million anticipated. AT&T Broadband capital expenditure this year is expected to be robust. AT&T is to release 4th quarter earnings in week of Jan. 29.
Mich. PSC gave Ameritech and Verizon until Jan. 24 to explain why they couldn’t implement any relief plan for Pontiac 248 area code before mid-2002, year after code is projected to run out of numbers. Companies in Dec. told PSC they couldn’t address relief for 248 until they completed relief plans adopted for Lansing 517 and suburban Detroit 810 codes. PSC wants to know why companies can’t work concurrently on 3 code relief plans, hire outside contractors to handle one or more plans or implement interim code conservation measures such as rate center consolidation or number pooling. PSC said delay contemplated by 2 incumbents would lead to number shortage that would greatly inconvenience Pontiac customers and have “chilling effect” on development of local competition in city. In another matter, PSC approved amendment to Ameritech’s statement of generally available terms (SGAT) for local interconnection to offer CLECs several additional types of network element bundles. Ameritech agreed to incorporate amendment in its existing interconnection agreements with CLECs. It said it proposed change to meet Telecom Act requirement for nondiscriminatory access to network elements. However, PSC declined Ameritech request for finding that change would put company in full compliance with unbundled network element (UNE checklist requirement of Sec. 271. PSC said request was premature. Agency said it wanted to see effect of new UNE combinations on development of competition before making any UNE- related checklist finding.
FCC is holding first meeting of World Radio Conference (WRC) Advisory Committee Jan. 30, 10 a.m.-noon in Commission meeting room. International Bureau’s Planning & Negotiations Div. will take lead on FCC’s WRC efforts, with Julie Garcia directing preparations and serving as designated federal official to advisory panel. Brian Fontes, Cingular Wireless vp-federal regulation, and Jennifer Warren, Lockheed Martin senior dir.- telecom trade and regulatory affairs, are chmn. and vice-chmn. of committee. FCC said particular emphasis at next WRC in June 2003 will be on International Mobile Telecommunications-2000, terrestrial wireless interactive multimedia services, sharing in 40 GHz with aeronautical mobile-satellite services. FCC also expects focus on public protection and disaster relief, broadcasting-satellite interregional sharing, amateur and amateur satellite services, high frequency broadcasting, regulatory procedures for satellite networks. “Our priority during this WRC cycle is to successfully complete the domestic preparatory process in a time frame that allows the U.S. to be a leader at regional and international meetings,” International Bureau Chief Donald Abelson said. FCC also has created new Web site: http://fcc.gov/wrc-03.
PASADENA “The audience has spoken and they've demonstrated that they have a huge appetite for this type of nonscripted programming” and Fox TV Network plans to capitalize on reality shows “within the boundaries of appropriateness.” That was message delivered here by Fox Entertainment Chmn. Sandy Grushow and Pres. Gail Berman to TV critics -- who were highly critical of Fox program Temptation Island, which airs tonight. One critic questioned network about “the ethics and perhaps the morality of bringing in people and trying to pry couples apart.”
Hughes Electronics said 2 of its subsidiaries, DirecTV and Hughes Network Systems, would start new high-speed satellite Internet service “Powered by DirecPC” as key part of expanding broadband strategy. Company plans to bundle satellite Internet service with DBS and offer it to DirecTV DBS subscribers. Service is expected to begin in this quarter.
Arbitron Co. said it has placed Portable People meters (PPM) with first 50 consumers for its upcoming Philadelphia market trial. Arbitron plans to install meters in another 250 homes over next 6 to 8 weeks. Company said 54 radio, broadcasting and cable outlets are now encoding their signals in preparation for trial, with at least another 16 expected to be added to list.
Adelphia Communications said it plans to offer about $485 million in class A common stock and $400 million in convertible subordinated notes to investors, following successful offering by Charter Communications late last week. Separately, Adelphia said it began rolling out Wink Communications’ interactive TV service in upstate N.Y., offering service as free feature for digital cable subscribers in Buffalo area. MSO said it plans to introduce in another 2 undisclosed markets by early Feb.