John Malone’s Liberty Global agreed to sell its 38 percent stake in Jupiter Communications for about $4 billion to KDDI Corporation, Japan’s second largest wireless carrier. The deal represents a 65 percent premium to Jupiter’s closing share price on Jan. 22, Liberty said. “Exiting the Japanese market at a substantial premium allows us to redirect our capital to more strategic consolidation opportunities in our core markets as well as our ongoing stock buyback initiatives,” said Mike Fries, CEO of Liberty Global. Liberty Global shares gained 8 percent Monday. After taxes and paying back some debt, Liberty Global will keep about $1.77 billion, said Jason Bazinet, a Citigroup analyst.
Four recent retirements by House Democrats and one party switch to the GOP is prompting some political analysts to predict Democrats’ power will wane in the Congress. Safe for now is Communications Subcommittee Chairman Rick Boucher, D- Va., a longtime technology advocate. But some analysts are betting Republicans may put up a candidate next year to run against him. Boucher ran unopposed in 2008. His district tends to be conservative, and his votes and views on the politically charged health care reform bill will be closely watched.
The National Association of State Utility Consumer Advocates asked the FCC to impose an additional financial condition on Verizon’s proposal to sell 4.8 million access lines in 14 states to Frontier. The deal would triple Frontier’s size. NASUCA asked the commission to also require Verizon to provide the $3.1 billion in financing that Frontier has identified as needed to complete the transaction.
Responding to industry accusations of bias, a Harvard University center said its conclusion that open-access policies spurred broadband in several foreign countries had been based on a review of 57 studies. In a 68-page memo released Monday, the Berkman Center for Internet & Society specified the studies, and it outlined updates planned for the final version of its report, requested by the FCC for developing the National Broadband Plan and coming in mid- January. Berkman’s first draft was criticized as unfair (CD Nov 18 p7) by incumbent broadband providers including USTelecom and NCTA.
Vice President Joe Biden announced Thursday $182 million in broadband grants for 18 projects, in the first round of NTIA and RUS funding under the stimulus law. The grants benefit projects in 17 states and are matched by more than $46 million in private capital, Biden’s office said. A report by the president’s National Economic Council highlighted some of the winning projects, which aim to build last- and middle-mile infrastructure, connect community institutions and promote digital literacy and economic development.
The FCC is considering a recommendation that the Universal Service Fund (USF) Lifeline and Link-up programs be expanded to cover broadband in its National Broadband Plan due to be released in February, said Brian David, director of adoption and use of the Omnibus Broadband Initiative. David spoke Friday at a meeting at which the U.S. Broadband Coalition released a report on “Bridging the Divide.”
Satellite video continues to be in high demand despite economic declines around the world, earnings from satellite video providers and operators showed Thursday.
Intelsat will take over a relatively new ProtoStar satellite following a $210 million bid in a Thursday bankruptcy auction of ProtoStar’s corporate assets, Intelsat said. ProtoStar, a DTH services company that declared bankruptcy earlier this year, has one more satellite up for auction in December (CD Aug 4 p9).
The state Public Utilities Commission gave conditional approval for California Advanced Services Fund grants to two broadband projects. The commission approved Thursday nearly $2.5 million for a last-mile project by Inyo Networks and almost $226,000 for a middle-mile project by Citizens Telecommunications. The construction grants represent 10 percent of the projects’ total costs. They are conditioned on the sponsors’ getting federal grants for 80 percent of the projects’ budgets. The Inyo project will bring fiber-to-the- premises and WiMAX broadband along U.S. Highway 395 and will improve broadband speeds to more than 6,200 underserved households in rural east-central and southeastern California, the commission said. For the communities of Independence, Big Pine and Lone Pine in Inyo County, Inyo Networks proposes fiber-to-the premises construction reaching more than 1,600 residences, for broadband service up to 100 Mbps download and up to 38 Mbps upload. Elsewhere in the region, Inyo proposes WiMAX wireless technology providing service at up to 10 Mbps. “This area has been historically underserved because of the high cost of broadband infrastructure construction and small market population,” the state commission said. “Economic development has suffered, and where available, its residents pay some of the highest prices in the state for broadband services.” The Citizens Communications project will bring broadband to unserved areas and raise broadband speeds in northern Lassen and Modoc counties. The plan is to extend a fiber cable 74 miles along Highway 299 from Fall River Mills to Alturas. The project will reinforce broadband capabilities and replace a radio link that can’t be expanded and is at 85 percent of capacity, the commission said. The project will provide a high-speed connection to telephone central offices and allow for an increase in broadband speeds to current customers and an extension of service to unserved areas next door.
Orbital Sciences said Q3 revenue fell 1 percent to $277.1 million from a year earlier. The company blamed the decline on reduced activity on communications satellite and missile defense programs -- though a commercial resupply services contract with NASA awarded last year offset some of the drop-off. Advanced space program revenue rose 38 percent because of new activity involving the contract, Orbital said. Net income fell to $9.4 million from $11.4 million. A 24 percent revenue decline to $75.7 million in satellites and space systems was the largest sales decrease among Orbital’s businesses. The company said the slowing in communications satellite activity resulted from “substantial completion of certain satellites.” Orbital had a 2 percent revenue decline in its launch vehicles unit, largely because the Missile Defense Agency’s Kinetic Energy Interceptor program was ended. The company said it had $235 million in new firm and option contracts. It’s projecting $1.11-$1.14 billion revenue for 2009.