Schools and libraries applied for $3.65 billion in E- rate discounts for the funding year that starts July 1, the Universal Service Administrative Co. (USAC) reported to the FCC. The figure, based on 38,799 applications, represents demand for funding and not all of the requests may be filled. The program has a $2.25 billion annual cap. In the April 15 letter to the FCC, USAC said the figure is about 15% lower than the $4.28 billion sought in 2004. E-rate demand figures often are reduced as USAC processes the applications and discovers duplication and ineligible requests, the letter said.
Cable is terming “disingenuous,” SBC backing of a Tex. bill (HB-3176) that would move the franchising process to the state level. SBC’s public position is that it doesn’t need a cable franchise to provide IP-based video programming services, just as cable VoIP service is exempt from traditional phone regulation (CD Dec 22 p2). With Va. legislators tabling a Verizon-backed Va. bill in Feb., the Tex. legislature is the new locus for cable vs. phone company fighting over rules on provision of video service.
The number of complaints filed with the FCC involving wireless phone service rose almost 38% in 2004 from the previous year, Consumers Union (CU) said after compiling publicly available data and more specific company data obtained using the Freedom of Information Act. CU said complaints rose from 21,357 in 2003 to 29,478 in 2004; CTIA pegs the tally of U.S. wireless subscribers at 180,464,003, up significantly from late 2003. Highest of all was AT&T-Cingular, with just under 290 complaints for every million subscribers, nearly 25 per million worse than 2nd-worst Cellular One and over 100 complaints per million worse than the 3rd most complained-about carrier, T-Mobile. Verizon Wireless, the 2nd-largest U.S. carrier, had the 2nd-best complaint rate of all carriers with more than a million subscribers, at about 75 per million and nearly 1/4 as many as AT&T-Cingular. U.S. Cellular, with about 45 complaints per million subscribers, was the most consumer-friendly carrier, CU said, with soon-to-be parent Alltel only a few percentage points behind Verizon for the 3rd spot. CU said regional carriers tended to have better service records than major wireless carries, but that was far from a clear or scientific trend: Cellular One, with a very poor ranking, is a small regional carrier, while Verizon’s exceptional ranking belies its 44-million subscriber list. Billing and service problems tended to be the “sore spots” for customers, CU said, as just under half of AT&T-Cingular and Cellular One’s complaints came in those categories. “The staggering increase in complaints is further evidence that reform is needed in the wireless phone market so consumers can get a fair shake,” said Janee Briesemeister, CU Senior Policy Advocate. Carriers are quick to call pro-consumer legislation “cumbersome,” she added, but flexible gestures such as the CTIA’s “non-binding, voluntary consumer code,” offer no promise to consumers and carry no penalties for violations.
UBS said in a report Thurs. that the Bells have signed commercial agreements with 30-50% of their UNE-P base of 16 million lines. The report provided some of the most complete numbers yet on commercial agreements to replace UNE-P. Not all Bells have provided complete numbers. BellSouth didn’t give a line count for a contract it signed with AT&T citing a confidentiality agreement with the CLEC. UBS said UNE-P contracts will give Bells a “modest boost” of $95 million in EBITDA or roughly 35 basis points of wireline margins for the Bells collectively. The Bells obtained deals about $4 per line higher than under UNE-P regulation, UBS said. On the negative side, UBS sees a base dwindling by 6.5 million to 9.8 million over 5 years based on 3.5% monthly churn. Qwest likely has agreements on the highest percentage of lines, UBS said. UBS said BellSouth, following a deal with AT&T, has 38% of its UNE-P lines under agreements. For SBC the percentage is about 50% and for Verizon 38%, UBS said.
Atlas Interactive picked BitBand’s VoD solutions for a $260 million IPTV deployment in India. First stage: launch netTV service to serve 50,000 subscribers in New Delhi. Atlas plans a 2nd phase later this year involving 38 major Indian cities including Bombay.
The FCC said it received 38 applications to participate in upcoming Auction 59 of 4,226 multiple address system licenses set to begin April 26. It said 20 submissions were deemed “accepted for filing” and 18 “incomplete.” The Commission said accepted applicants would become qualified bidders as soon as it received required upfront payments due April 1. To become qualified bidders, applicants tagged “incomplete” must make the upfront payment and resubmit by April 1, the FCC said.
AT&T agreed to pay nearly $38,000 in penalties to settle Pa. complaints that it violated that state’s no- call telemarketing law. Under a settlement with the Pa. Attorney Gen. Office, AT&T will pay a $29,500 fine and $50 in damages to each of 59 named plaintiffs, and will reimburse the state $5,000 in inquiry costs. AT&T was accused of placing repeated calls to persons on the no- call list and falsely telling consumers AT&T was exempt from the no-call law. AT&T didn’t have to admit guilt but must change its telemarketing practices to guard against future violations. AT&T said one of its telemarketing agents had computer problems that triggered calls to people on the no-call list.
About 570 stations had licensed iBiquity Digital’s HD Radio technology as of Feb. 15, iBiquity told the FCC. Of those, the firm said in its update, about 250 in 38 states are broadcasting a digital HD Radio signal. The firm predicts that over 650 stations will be broadcasting digitally by year-end 2005. Of stations on the air with HD Radio, iBiquity said, at least 10 are broadcasting in each of 6 major markets -- Atlanta, Boston, Chicago, Detroit, L.A. and San Francisco. About 75% of stations on the air are FM; 55 of the 250 are non-commercial, iBiquity said. The company, which expects retailers to be carrying at least 13 models of HD receiver this year, said it’s working with car makers planning to incorporate HD Radio gear as original equipment in 2006, 2007 and 2008. “The station conversions and receiver introductions for 2004 and 2005 provide a strong foundation for the growing availability of this important new technology,” iBiquity said. The firm urged the Commission to complete an existing rulemaking on terrestrial digital radio (99-325) by authorizing nighttime AM service, supplemental audio services and advanced data applications.
The FCC said wireless complaints recorded “a sharp decline” 4th quarter, dropping to 4,369 from 9,120, with decreases in each of the top 5 categories. It said billing and rate complaints led the way with a more than 50% decline. Wireline complaints also showed a sharp decrease, dropping from 16,827 to 11,228, with decreases in all 5 categories. The FCC said there was a “modest” increase wireless inquiries 4th quarter to 10,383 from 10,237 in 3rd quarter -- with number portability dropping from the top categories. Increases in the billing and rates and general mobile radio service license categories accounted for the change, it said. Wireline inquiries continued a downward trend, dropping from 42,661 3rd quarter to 38,055 4th quarter, it said. The FCC said cable service complaints decreased from 266 3rd quarter to 132 4th quarter, with a sharp decline in the billing and rate category leading the way. It said cable inquiries experienced a modest decline, falling from 4,710 3rd quarter to 4,054 4th quarter. The FCC noted that it received many inquiries and complaints that didn’t involve violations of the Communications Act, or a rule or order of the Commission. “The existence of a complaint does not necessarily indicate wrongdoing by the company at issue,” it said.
Mobile phone maker Sony Ericsson said Tues. it’s releasing the first digital Walkman phones, designed to tap into the fast-growing mobile music market. The new W800 Walkman phones are expected to be available in the 3rd quarter. The phone will be compatible with Apple’s AAC format and MP3 files. The handset will come with CD ripping software for users to transfer music to the phone, a 2-megapixel camera, an FM radio and 38 MB of memory, expandable to 2GB.