Viacom agreed to acquire the rest of Sportsline.com -- beyond the 38% it owns -- for $1.75 per share. Viacom expects the deal to close by year-end. Sportsline.com Chmn. Michael Levy said a special committee of the firm’s board decided the deal gives Sportsline.com “outstanding potential to grow as part of a multi-billion dollar global media company.”
An SBC local market report to the Ohio PUC shows its local share declined to 64% in May, from 73% in May 2003. The report was made public after SBC dropped its demand for confidential treatment of the document, which was filed pursuant to the PUC’s March decision to boost SBC’s unbundled network element rates. That order required SBC to file a bimonthly report on market competition. SBC had wanted this first report treated as a sensitive document because it was based on data obtained through its business relationships with CLECs, but dropped that demand Thurs. after deciding the aggregated data didn’t reveal CLEC-specific information. The report said wireline CLECs had a 20% share, wireless carriers had 10% and cable modem services had 6%. SBC said it lost 11% share during the 12-month study period, while wireline competitors saw a 17% share increase, wireless carriers 38% and cable modem providers a whopping 44% growth. The PUC order required monitoring of competitor market shares because the PUC said it would reconsider the UNE increase if CLECs’ market share showed a significant decline, but this first report showed CLECs’ share holding steady.
The benefits of the 800 MHz rebanding order are so significant for public safety groups that it’s unlikely rival carriers will go to court to seek a stay when the order is eventually released by the FCC, Nextel Senior Vp Robert Foosaner said Wed. during an earnings call with analysts.
Digital cable subscribers are more likely to buy premium services and pay more than satellite subscribers, according to a study by Horowitz Assoc. Digital cable is also more likely to appeal to high-end tech consumers, reversing the early image of digital and satellite deployment, Horowitz said. The average monthly cost of digital cable is about $72 compared to roughly $56 for satellite, according to the “State of Digital and Interactive TV 2004” study. The study showed 28% of consumers use digital cable and 20% use satellite. Close to 2/3 (65%) of digital subscribers pay for premium channels (42% paying for 2 or more channels), the study showed. In contrast, 55% of satellite subscribers pay for premium channels (37% paying for several premiums), according to the study. Of the pay-per-view users ordering at least one movie a month, 39% were digital cable subscribers and 41% were satellite subscribers, the study showed. Among digital subscribers, 38% averaged 3 movies monthly using video-on-demand and movies-on demand. Twenty- two percent of digital subscribers and 8% of satellite subscribers may downgrade or discontinue their services, but 14% of basic cable subscribers will likely upgrade their services, the study showed. According to the study, 8% of satellite subscribers are considering a switch to digital cable.
Telesat Canada’s Anik F2 is scheduled for launch Mon. While Telesat will use the C-/Ku-band payloads for traditional video, data and voice services, the Ka-band payload will provide broadband Internet and data services, said David Ryan, pres. of manufacturer Boeing Satellite Systems International. WildBlue will also provide its satellite Internet service from the satellite, using 31 of 38 active Ka-band transponders (CD April 14 p9). Ryan said Boeing will complete in-orbit testing during the first few months, after which time services are expected to begin. He said Anik F2 was the largest satellite the company had delivered to Telesat.
The deadline for submitting bids in NextWave’s private auction, scheduled for Thurs., came and went Tues. without a decision from the FCC that Nextel would get the 1.9 GHz spectrum it has been seeking. That was a potentially negative development for Nextel, which had pushed for a decision prior to the deadline. The FCC last week put a Nextel order on its agenda for Thurs.’s Commission meeting.
JAMDAT Mobile said it filed a registration statement with the SEC to make an initial public offering. The company publishes wireless entertainment applications, including ring tones, games and images. JAMDAT said it has signed agreements to offer its applications in 38 countries through 72 wireless carriers.
The U.S. Appeals Court, D.C., denied a motion last week by the Joint State Assns. to ban the FCC from conducting EEO audits until several issues in the process were resolved. The group also asked the FCC to extend the June 28 deadline for responding to the audit letters. But the court said the group hadn’t shown “a clear and indisputable right to the relief sought.” Earlier, the FCC denied the request by the group for an extension (CD June 22 p7). In May, the FCC mailed audit letters to about 206 radio stations, 30 TV stations and 38 multi-channel, video program distributors. The FCC has been criticized for not doing the audits sooner.
Vice-presidential hopeful and retiring Sen. Edwards (D- N.C.) has received many donations from prominent figures in the broadcasting and entertainment industry, as well as some in high-technology. But he has been all but ignored by telecom donors. Sen. Kerry (D-Mass.), the presumptive Democratic nominee for president, selected his chief primary rival, Edwards, to join his ticket Mon. Kerry also was strongly favored by mass media donors in his primary campaign.
Several satellite operators submitted their annual status reports to the FCC: (1) DirecTV said Boeing Satellite Systems has made “significant progress” on the Spaceway 1 and 2 birds destined for 103 degrees W and 99 degrees W. The birds should be complete early next year. DirecTV said it expects to meet its June 25, 2005 launch and operation milestone for the birds. DirecTV 8 is also being completed by Space Systems/Loral, DirecTV said. The hybrid DBS/Ka-band satellite will be used for local-into-local and is scheduled for launch ahead of the June 25, 2005, milestone. (2) PanAmSat said only 3 of its satellites had transponders that experienced outages longer than 30 min. A transponder on Galaxy 3R experienced a spontaneous shut-off for 72 min. A spontaneous shut-off of PAS 8 lasted 45 min. PAS 24 also experienced a spontaneous shut-off for 2 hours 44 min. on one transponder. Another transponder on the bird was unavailable 38 min. owing to a reconfiguration. PanAmSat said it has 3 satellites under construction and 2 authorized satellites that haven’t started construction. (3) Volunteers in Technical Assistance (VITA) said the only outages on its nongeostationary satellite orbit (NGSO) mobile satellite service (MSS) system longer than 30 minutes result from deteriorating battery performance. VITASat 1R has had battery performance issues since Dec. 2000 and is currently operated only during the day. Battery power in VITASat 2 began deteriorating in July 2002, and the company hasn’t used the satellite since Jan. 2003. (4) A report from Intelsat confirmed only that its 10-02 satellite was launched in June. The company redacted the rest of the report because it said it contained “commercially sensitive information that would not normally be available to the public.”