Qualcomm Wed. hiked its Q3 earnings forecast based on more demand for low-end cell chips and high-end wireless technology. The manufacturer upped its revenue estimate to 38-40 cents per share, up 2 cents from earlier projections. Most of the company’s growth is coming from China and India, it said. Investment firm Lazard Capital Markets ranked the company a “BUY,” saying the raised earnings projections are a “hard act to follow.” It noted concern about 6 competitors in Europe and the U.S. suing Qualcomm for unfair business practices.
The Mich. PSC dismissed 12 of 13 CLEC challenges to a list of 38 wire centers AT&T said had collocated wholesale competition sufficient to qualify for exemption from mandatory cost-based high-capacity network unbundling requirements under FCC rules. In 12 of those centers, PSC staff upheld the AT&T claim of more than enough competitive collocators to meet FCC requirements for an unbundling exemption. The investigators upheld CLEC assertions that a wire center in Wayne didn’t meet the exemption standards. The PSC approved all the other wire centers as exempt. The PSC in Case U-14767 also set a method for handling CLEC wire center classification challenges. It said when AT&T wants to reclassify a wire center as exempt from unbundling, it must file the underlying data that support the reclassification under proprietary seal. Those who challenge the reclassification can see the data if they agree to keep it confidential. Staff then reviews the AT&T and CLEC positions and makes a recommendation.
Broadband triple-play offers appear to turn the adage “you get what you pay for” on its head, a co-author of an Organization for Economic Cooperation & Development (OECD) report said today (Tues.) “Countries such as France and Japan, which have the lowest priced bundles, also offer the fastest speeds, best calling plans and the most included channels,” said economist Taylor Reynolds of the science, technology & industry directorate. But, he and colleague Yoshikazu Okamoto said, multi-play services could raise regulatory issues such as net neutrality and must-carry.
The U.S. will help the Afghan Ministry of Communications with development projects, U.S. Coordinator for International Communications & Information Policy David Gross said Sun. in a meeting in Kabul with Afghan Communications Minister Amirzai Sangin. Afghanistan has more than one million mobile and digital phone subscribers, documents said. Officials said in 2005 that 987 new licenses had been issued by the Ministry of Communications since the mid-2002 development of the master frequency plan: HF, 65 licenses; VHF, 130; UHF, 37; microwave, 310; GSM, 8; ISP, 38; personal communication operation, 67; amateur radio, 4; FM radio, 109; TV, 65; VSAT terminals, 164.
German regulator BNetzA Thurs. signaled displeasure with govt. plans to give Deutsche Telekom (DT) a regulatory holiday while it installs a new fiber network. Releasing the agency’s annual report, BNetzA Pres. Matthias Kurth said it’s “no miracle but the effect of competition” that DT competitors’ market shares have grown disproportionately. In 2004, DT rivals provided 17% of all DSL connections, a number rising to 38% at the end of 2005. Kurth said the achievement resulted from goal- and competition-oriented regulation. He said he worries about the “shallow” debate on rolling back allegedly heavy-handed regulation to further innovation and foster investment. Apart from the fact that those arguments always come from the same corner -- DT -- the annual report shows they're untrue, he said: Rather, opening the monopoly network has been good for growth. The Ministry of Economics (BMWi) is overhauling Germany’s telecom act and is expected to submit amendments in May, said telecom lawyer Axel Spies. One amendment in play is a new one, Section 9a, that would guard DT from oversight while it builds a fiber VDSL network. The proposal has drawn fire not only from competitive telcos but also from the European Commission. Now, it appears the ministry may be prepared to “revisit” the draft article to “accommodate” Commission concerns to an extent. And complaints pending against Germany at the U.S. Trade Representative (USTR) hit at the notion of a regulatory moratorium (and other issues), and the ministry is talking to the USTR about them, Spies said. But because there’s no text of any revisions to 9a, “we don’t know yet whether these are only cosmetic changes.” DT rivals are “pleased that Mr. Kurth has made it clear that there is a clear connection between investments and regulatory environment that furthers and encourages competition,” Spies said on behalf of the German Competitive Carriers Assn. VATM. Competitors “agree there is no indication” Germany’s telecom sector is over- regulated, he added. Cabinet approval of the telecom act amendments is expected in May, after which the measure moves to the Bundesrat (Upper House of Parliament), which will vote June 16 on a formal position on the bill. It then shifts to the Bundestag (Lower House) for early fall consideration, Spies said.
Arianespace said it successfully launched 2 satellites into geostationary orbit Sat. evening: A telecom satellite for Spanish military operator Hisdesat and Hot Bird 7A for European operator Eutelsat. The Hisdesat craft, Spainsat, built by Space Systems/Loral, carries 13 X-band transponders and a Ka payload for the Spanish defense ministry, SS/L said. Spainsat’s footprint at 30 degrees will extend from Denver to the Mideast, SS/L said. Eutelsat’s Hot Bird 7A, with 38 Ku- band transponders, joins the operator’s TV neighborhood at 13 degreesE. The satellite will assume Hot Bird 1’s video traffic in April, Eutelsat said.
Wash. became the 4th state to pass an e-waste bill, after Cal., Me. and Md., with producer responsibility bill SB-6428 sailing through the legislature. The Wash. Environmental Council (WEC) hailed work by a coalition including Hewlett-Packard for bill’s 38-11 Senate passage and 69-29 House win. Under it, most manufacturers will participate in a quasi-govt. body for collection and recycling of used products. Firms that qualify could run independent recycling programs instead of contributing to the 3rd-party organization. “It’s a pretty complicated construct,” said supporter Sego Jackson, principal planner for Snohomish County. Firms that work independently would finance their programs as they choose. But the standard program would have a board named by the governor and made up of manufacturers that designs and run the system. The board would have power to decide how to charge firms for collection, transportation and recycling of e-waste. “They might do it on a per-product sold in the state basis, or on market share or return share,” said Jackson. Environmental groups, including WEC and the Wash. Citizens for Resource conservation, called the bill “the most significant advancement made in recycling in a generation.” Besides bipartisan support in both houses, the bill had retailer, charity group and local govt. backing thanks to a “common sense” approach, the groups said. “The governor is absolutely inclined to sign the bill,” said Jackson.
Time Warner, taking a cue from Carl Icahn, will boost its cable spinoff later this year to reduce business conflicts among the firm’s divisions and spark more content deals with other companies, said investors and analysts. The company plans to give 16% of Time Warner Cable to investors when it completes the $17.6 billion purchase of Adelphia systems with Comcast by June 30 (CD Feb 2 p13). Observers we spoke with agreed that figure likely will reach at least 20% now that the firm has said it’s studying other options for the cable unit in a settlement with the financier (CD Feb 21 p10). Icahn had pushed for Time Warner to completely separate itself from the cable unit, an option one investor said he supports.
The U.S. needs communications systems that are “operable and interoperable” during crises, the White House said in a report issued Thurs. White House homeland security advisor Frances Townsend’s report analyzed the U.S. response to Hurricane Katrina and suggested how to improve operations.
Complaints to the FCC about wireless service fell 38% 4th quarter, to 4,956 from 6,873 the previous quarter, the Consumer & Governmental Affairs Bureau said Thurs. Wireline complaints rose a bit -- most decrying cramming or Telephone Consumer Protection Act violations like ignoring do-not-call lists, calls to homes using artificial or prerecorded messages or junk faxes. Broadcast-related gripes “significantly” rose to 44,287 from 26,368; most were about indecency/obscenity, the bureau said. Cable and satellite complaints fell to 225 from 243, the agency said.