AirGate PCS, Sprint PCS network affiliate, said revenue surged to $81.7 million in quarter ended Dec. 31 from $23 million in same period last year as net loss was reduced to $29.6 million from $33.9 million loss. It added 69,215 net subscribers in quarter, it said. Net additions for 2nd quarter are expected to be 38,000-45,000, AirGate said. Projections are down from analyst estimates of up to 60,000, causing AirGate shares to drop more than 25% at one point Wed.
Merger deal announced Tues. night by Comcast Corp. and AT&T comes at time when FCC has no ownership cap in place by which to measure if combination of nation’s first and 3rd largest cable is too big. New company, called AT&T Comcast Corp, will have about 22 million subscribers, be major presence in 17 of nation’s 20 largest cities and be competitor in 41 states. AT&T’s decision, which received unanimous approval by its board Tues., came after Comcast significantly upped its original $44 billion price offered, and rejected, over summer. Under terms of agreement, AT&T will spin off its broadband unit and simultaneously merge it with Comcast. New company assumes nearly $20 billion in debt and other liabilities from AT&T and its subsidiaries, as well as $5 billion of AT&T subsidiary securities held by Microsoft Corp. Microsoft agreed to convert that $5 billion into 115 million shares of new company.
Administrative law judge (ALJ) for Cal. PUC proposed that Qwest pay $38 million fine for slamming. Qwest has until Jan. 4 to challenge proposed penalty. ALJ also recommended that Qwest be required to refund carrier change fee and difference between its rates and what authorized carrier would have charged. ALJ said Qwest failed to properly supervise sales agents in 1999 and 2000, resulting in “thousands” of Cal. customers’ having their long distance switched to Qwest without authorization. Because Cal. is outside Qwest’s home region, it’s allowed to provide long distance there. ALJ cited reports that Pacific Bell received 30,800 slamming complaints involving Qwest, Verizon received 3,200 complaints and PUC’s Consumer Affairs Div. got 646 complaints that carriers were unable to resolve. ALJ also recommended adoption of 21 antislamming safeguards proposed by PUC Consumer Div. Qwest earlier said it already had implemented 14 changes on list and would implement rest with some modifications. Safeguards require Qwest to keep records of change orders and verifications for 1 year and monitor change orders for suspected forgeries. In another matter, PUC approved price cap adjustments for Pacific Bell and Verizon, ordering $24.8 million reduction in price-capped services to reflect several one-time revenue adjustments, including intervenor compensation, merger-related savings and local competition implementation cost recovery. PUC ordered $13 million reduction for Verizon’s capped services to reflect local competition implementation cost recovery and merger compliance adjustments. Reductions take effect Jan. 1.
Verizon ranked highest among residential long distance providers for overall customer satisfaction, according to Yankee Group survey. Survey found 76% of Verizon customers expressed “overall satisfaction,” which gave it slim lead over Sprint with 75%. On individual metrics, Sprint led in 4 categories -- billing accuracy, quick problem resolution, value for money and quality of service. AT&T led in overall customer support and professionalism of its sales staff. Overall, only 36% of consumer long distance subscribers said their long distance provider deserved their loyalty and only 38% said their provider was delivering good value for money it received. Verizon is 4th largest long distance company.
New Eutelsat study found 122 million homes in 38 countries throughout Europe, Middle East and N. Africa were equipped for cable or satellite reception. Study said homes represented 41% of total TV households in 2001, compared with 38% of homes surveyed last year. Cable was available in 70.2 million or 58% of homes. Satellite reception rose to 18% or 54.3 million homes. In Western Europe, 53% of TV homes have either cable or satellite reception, 35% in N. Africa and Middle East, 27% in Eastern Europe.
Group of House Appropriations Committee members from N.Y. say that proposed emergency supplemental funding in committee report on military spending measure fails to adequately address telecom and broadcast facilities damaged in terrorist attack on World Trade Center. Committee report (H.-Rpt. 107-298) for FY 2002 Dept. of Defense (DoD) spending bill (HR-3338) would provide additional funding for federal agencies and attack recovery efforts beyond what was approved in 2001 Emergency Supplemental Appropriations Act (P.L. 107- 38). However, N.Y. Reps. Hinchey (D), Lowey (D), Serrano (D) and Walsh (R) criticized committee’s “failure to include additional contingent emergency spending for the critical recovery efforts in New York City.” They said report contradicted recently enacted emergency funding law, which “explicitly states” that half of $40 billion fund must be devoted toward “disaster recovery activities” in N.Y. Va., Pa.
N.J. Board of Public Utilities ordered major reductions in Verizon unbundled network element (UNE) rates, disregarding concerns that low UNE rates fostered unhealthy reliance on incumbents’ networks. BPU concluded that lower UNE rates would provide CLECs with “immediate access to the entire landline customer base” without making huge up-front investment in facilities. That in turn would speed development of competition stateside, BPU said. Agency ordered 41% cut in monthly unbundled loop rate, to $9.52 from $16.21, and slashed rate for UNE platform that combines loop with local switching 38%, to $13.93 from $22.42. BPU said it also made “dramatic” cuts in nonrecurring charges for UNE service and adopted rule changes to encourage competition for digital subscriber lines and other advanced services.
Number of European homes equipped for cable or satellite grew to 122 million (41% of all households), from 111 million in 2000, Eutelsat said in report, and number of homes equipped for digital reception increased 54% to 21.7 million. Of homes in 38 European countries, 98 million received programming from Eutelsat satellites.
It’s likely to be at least 2 years before N.Y.C. TV stations have fully functional antennas and transmitters on permanent sites, and terrorist attack is likely to mean lengthy delay in full DTV deployment, said consultant Leavitt Pope, chmn. of standing All-Industry Committee that deals with common antenna sites there. Pope said few existing alternatives were available that fully met broadcasters’ needs, although many might locate at least temporarily on Empire State Bldg. or elsewhere.
FCC unveiled details of its restructuring plan at Thurs. agenda meeting, most dramatic of which would be combination of Cable and Mass Media Bureaus into newly named Media Bureau. As expected, bureau would include separate Office of Broadcast License Policy, which would be headed by current Mass Media Bureau Chief Roy Stewart, FCC Chief of Staff Marsha MacBride said at media briefing. Also as expected (CD Aug 29 p1), bureau would handle “postlicensing” policy for direct broadcast satellites (DBS), which would be shifted from International Bureau. Common Carrier Bureau would be renamed Wireline Competition Bureau and would have greater emphasis on technical and economic analysis, said Mary Beth Richards, special counsel to FCC Chmn. Powell, in presentation after meeting’s regularly scheduled business. Under changes, which require approvals from labor union, 8th floor and congressional appropriators, Consumer Information Bureau would carry new name of Bureau of Consumer Information & Intergovernmental Affairs and have broader policy functions. Wireless Bureau and Enforcement Bureau would assume some new duties, but their structure would remain intact. “This is a substantial effort at reorganization but it’s not radical,” Powell said.