Northpoint announced appointments of former Republican staffers George (Chip) Tangent and Brian Fortune. Tangent was named vp-legislative affairs and Fortune dir.-corporate development. Tangent formerly worked for Rep. Ramstad (R-Minn). Fortune worked for 3 House Republican Conference chmn., including Armey (R-Tex), Boehner (R-Ohio) and Watts (R-Okla.) along with former Rep. Smith (R-Ore.).
Walt Disney Co. took issue with bid by Network Affiliated Stations Alliance (NASA) for FCC inquiry into allegedly “unlawful network tactics and practices” (CD March 9 p2). In letter to FCC Asst. Gen. Counsel John Riffer Mon., Disney attorney Erwin Krasnow called NASA petition “questionable procedurally, substantively flawed and ill timed” and said it should be dismissed. Noting that competition to broadcasters from cable, DBS, wireless cable and Internet services had emerged in last 2 decades, Krasnow argued that “there is absolutely no reason to revisit the issue of network power given that the Commission previously considered and consistently rejected similar allegations at times when broadcast networks had far fewer competitors than today.” He also said it was “curious that the petition is spearheaded by the very same affiliates who own television stations and daily newspapers and who are pressing hard for repeal of the newspaper/broadcast cross- ownership rule.” He urged FCC to reject petition without even waiting for public comments.
FCC let AT&T off hook on MediaOne deal compliance conditions Fri. evening, suspending 2 pending deadlines for company to dispose of some key cable assets. In 3-1 vote, Commission said it was lifting deadlines to give itself “an opportunity to determine the relationship, if any,” between obligations that agency imposed on AT&T-MediaOne acquisition and recent U.S. Appeals Court, D.C., ruling that held cable ownership limits to be unconstitutional. Brief order covers both May 19 deadline for AT&T to sell its 25.5% stake in Time Warner Entertainment (TWE), spin off Liberty Media or shed cable systems with 9.7 million subscribers and today’s deadline for AT&T to state whether it would be able to comply by May 19. Agency officials offered no guidance on when they would decide whether to seek rehearing by appellate court, appeal to U.S. Supreme Court or change congressionally required limits.
Whether it’s “the new [Powell] Commission or prior Commissions,” provisions of Communications Act banning broadcast indecency aren’t being enforced, Comr. Tristani charged. “We have a very clear law” on indecency, she told us in explaining her recent statements objecting to several Enforcement Bureau actions dismissing indecency complaints (CD March 1 p9). Law already has been upheld many times by courts, so there’s no First Amendment issue or need for congressional action, she said in interview: “This is about protecting our children.”
Corning reduced its outlook for 2001 earnings to $1.20-$1.30 per share from earlier estimate of $1.40-$1.43. Company said revision reflected current economic slowdown, particularly lower expectations for telecom segment. “Recent customer feedback… indicates that a meaningful recovery of spending by our telecommunications customers will occur much more slowly than we had previously anticipated,” Corning CEO John Loose said. Corning shares rose 9% following announcement.
Coalition of 21 broadcasters and others urged FCC to delay its pending auction of 700 MHz spectrum yet another time so that they could have more time to work out private deals to vacate TV Ch. 60-69. Led by Paxson, group representing 42% of 99 analog stations now operating in that spectrum petitioned Commission to postpone auction to next Jan. from Sept. 12. Group, which also includes Entravision Holdings, Jovan Bcstg., Pappas Telecasting, Shop at Home and Sinclair Bcst. Group, proposed 8-step band- clearing plan that generally would allow in-band broadcasters to switch to their digital slot or another station’s analog position. Paxson Chmn. Lowell Paxson said he expected more broadcasters to sign petition in next few weeks.
Current market conditions and evolving business plans have forced ICO-Teledesic Global Ltd. and New ICO Global Communications to withdraw pending S-4 registration statement with SEC for proposed merger, companies announced Mon. They said they wanted to assess financial market and strategic changes in their plans. Boards of both will continue to evaluate mergers with eye toward determining whether one or both will move. New ICO acquired assets of ICO Global Communications in May following Old ICO’s emergence from Chapter 11 bankruptcy proceedings. Old ICO shareholders and other investors received shares of New ICO’s Class A common stock. Under terms of reorganization plan approved by court, New ICO was to use reasonable efforts to list Class A common by March 31. Concurrent with withdrawal of S-4 application, New ICO sought confirmation from court that it not be required to file S-4 because of change in financial conditions. Meanwhile, company confirmed plans to launch satellite on Atlas vehicle from Cape Canaveral in early June. Boeing-built satellite is one of 14 currently under construction for ICO. Backing up earlier reports, ICO said medium-Earth-orbit satellite would serve as part of initial testing of integration of New ICO’s space and ground systems (CD March 15 p3).
Vivian Carr retires as senior vp-investor and media relations, Liberty Media, succeeded by Michael Erickson, who moves from vp-controller, Liberty Media International to vp-investor and media relations… Changes at Worldwide Wireless Networks: Dennis Shen, one of company’s founders; and Vincent Taso, vp-Asian operations, Multacom, appointed to board; Thomas Rotert resigns as legal counsel… Ra?l Pe?a, ex-Appiant, joins Alexis as vp- sales… Harry Hobbs, ex-American Personal Communications, appointed pres.-COO, PSINet… James Chitkowski, ex-Sorrento, named vp-sales, PacketLight Networks… John Linebarger resigns as chief technology officer, Nucentrix Broadband Networks… Michael Lee, ex-TelePacific Communications, joins CAIS Internet as pres.- CEO… Kathryn Dole promoted to vp-national affairs, NPR.
Sprint says it’s withdrawing from Cal. residential resale market in Pacific Bell service area. Withdrawal will be effective after notice period is up for its 8,000 customers, who are being told that they must find another local provider. Sprint’s exit follows similar actions by Verizon, WorldCom and AT&T, which abandoned residential resale of Pac Bell service. Sprint cited same reason as others for withdrawing -- that it can’t make profit at residential wholesale discount rate offered by Pac Bell. Sprint began resold residential service in 1997 in San Francisco Bay area and at one point had more than 45,000 customers. But it stopped marketing service and base dwindled to present level. Pac Bell says it has 283,000 resale lines, of which 133,000 (47%) are residential. Sprint’s residential pullout is occurring as Cal. PUC is nearing decision on whether to endorse Pac Bell interLATA long distance entry.
Ill. Citizens Utility Board unveiled legislative package for reforming state’s expiring telecom law and lined up 2 lawmakers to introduce it in Senate and House. Consumer watchdog’s legislation (SB-1125 by state Sen. Kirk Dillard and HB-3268 by state Rep. Karen May) would require Ill. Commerce Commission to impose same installation and repair service standards on incumbents and CLECs, enforced by customer credits, fines and free loaner cellphones for long service delays. Bill also would require that incumbents under price cap regulation be required to share “excess” profits with ratepayers, enlarge local calling areas, eliminate rural zone charges, abolish mandatory residential measured service. All local carriers would have to advertise their lowest-priced option and would authorize ICC to require carriers to disclose their prices in same way so consumers could make valid comparisons. Meanwhile, competitor-supported Ill. Coalition for Competitive Telecom urged legislature to pass SB-928, which would require structural separation of Ameritech’s wholesale and retail operations. Group said separation was only way to ensure Ameritech couldn’t use its control over local network to impair competition.