Rep. Boucher (D-Va.) challenged TV copyright owners who are concerned about piracy from digital set-top boxes to “present a united front” on what home copying they will accept in exchange for encryption technologies. At kickoff of American U. Washington College of Law’s new Glushko-Samuelson Intellectual Property (IP) Clinic, he said he hoped Congress would approve measure akin to Sec. 1201(k) of Digital Millennium Copyright Act. That Act requires VCRs to respond to technologies encoded on videocassettes to stop people from copying films where there’s no reasonable expectation of being allowed to do so (as, for example, when movies are rented from video store).
Gemstar-TV Guide International gained its 2nd major cable carriage deal in a month, signing 20-year agreement with Comcast for MSO to offer Gemstar’s interactive program guide (IPG) to digital cable subscribers. Under pact, which consists of initial 10-year deal plus 10-year extension, Comcast will offer Gemstar’s advanced program guide to nearly all of its current 1.5 million digital cable subscribers and future digital customers in return for up to 15% of guide’s ad revenue and up to 50% of guide’s TV commerce revenue. Most notably, Comcast agreed to offer Gemstar’s IPG on its Scientific-Atlanta digital set-top boxes, which now feature only box manufacturer’s house brand guide. “We plan on having a substantial majority of their IPGs,” said Gemstar Co- Pres. Peter Boylan, whose guide already is in 1.2 million of Comcast’s 1.5 million digital cable households. “We've structured the deal so that Comcast has strong incentives to give us all of its business.” But Gemstar didn’t receive exclusive deal from Comcast, which means that MSO can keep rolling out its own partly owned IPG from WorldGate Communications. “We've preserved the right to continue to use it [WorldGate’s TV Gateway guide] and others in a decent number of homes,” Comcast spokewoman said. Boylan said pact with Comcast also calls for MSO to offer Gemstar’s TV Games Network horse racing channel in 2 states where TV betting is legal. In addition, he said, Gemstar will have “extensive collaborative relationship” with Comcast’s QVC home shopping channel as result of deal. New carriage agreement follows similar deal between Gemstar and Charter Communications in Feb.
Cost of cellphone service edged up slightly in Feb., with average expense over 4 typical usage plans up 0.2% to $39.04, Econ One research firm reported. Survey looked at 25 major cities and found changes reflected “minor plan tinkering” by carriers rather than change in actual rates, Econ One said -- www.wirelesssurvey.com.
Option B of EEO rules isn’t essential to FCC’s goal of ensuring that broadcasters “engage in broad outreach in recruiting new employees,” agency told U.S. Appeals Court, D.C., late Wed. in support of its petition for partial reconsideration of court order in dismissing rule “in its entirety.” In throwing out rules, court had said Option B “put official pressure on broadcasters to recruit minority candidates, thus creating a race-based classification that is not narrowly tailored to support a compelling government interest and is therefore unconstitutional” (CD Jan 17 p1). Just one work day after Commission sought partial consideration (CD March 5 p9), in unusual move court sought additional information from Commission.
Under strategic agreement signed in Beijing, China’s Jiangsu Mobile Communication awarded Alcatel $180 million contract to expand its GSM wireless network. Alcatel said agreement covers transceiver stations, base station controllers, mobile switching centers, operation and maintenance controllers and services. In part, Alcatel said it will help Jiangsu to upgrade network so it can make transition to General Packet Radio Services.
Tele 1 Europe said Thurs. it was in “advanced talks” to buy part of Sonera’s fixed data and telephony operations in Sweden for about $19.18 million in cash. Tele 1 said transaction would include about 1,000 customers, related network equipment and personnel but doesn’t include Sonera’s Swedish carrier operations.
Attorneys for FCC and Coalition for Noncommercial Media (CNM) squared off in U.S. Appeals Court, D.C., Thurs. over Western N.Y. Public Bcstg. Assn. (WNYPBA) plan to sell its 2nd noncommercial station to commercial broadcaster LIN TV for $26.2 million (CD Nov 9 p5). Washington-based CNM, which opposes conversion of PTV station to commercial broadcaster, is seeking to overturn Mass Media Bureau’s approval of that switch because move would leave Buffalo area without one of its 2 public stations. But FCC stoutly defended its approval as justified after dismissing 2 CNM counterproposals to preserve both stations as noncommercial entities. WNYPBA, which originally planned to sell station to Sinclair Bcst. Group, is pursuing sale to finance DTV conversion of its remaining station.
Spectrum Astro signed $50 million contract to build space vehicles for Air Force Communication Navigation Outage Forecasting System. Contract calls for Spectrum Astro to provide on-orbit readiness, training and one year of on-orbit support.
Australia Communications Authority (ACA) raised $576.8 million from 3rd-generation wireless auction that closed Thurs., with Telstra making highest overall bids of $149 million. Australian govt. said Telstra won 15 MHz of paired spectrum in all capital cities, 10 MHz paired spectrum in regional areas and 5 MHz of unpaired spectrum in all capital cities. Other successful bidders included 3G Investments, Hutchison Telecommunications Australia, Optus Mobile, Vodafone Pacific, CKW Wireless. Australian officials said licenses allow successful bidders to determine technology that will be used and that winners have committed to using Wideband CDMA and cdma2000. ACA Chmn. Tony Shaw said winning bidders include new market entrant CKW.
EchoStar Chmn. Charles Ergen and News Corp. Chmn. Rupert Murdoch, who are engaged in merger talks, top list of individuals with ties to satellite industry on Forbes 400 list of world’s wealthiest people. Ergen and Murdoch are listed as tied for 16th, each with estimated net worth of $11 billion. New ICO-Teledesic Chmn. Craig McCaw is No. 31 at $7.7 billion.