FCC opened rulemaking on transitioning Bcst. Auxiliary Service (BAS) to digital. Commission also proposed conforming some rules of BAS, which is used for electronic newsgathering and studio-transmitter links, with those of Cable TV Relay Service (CARS) and fixed microwave service. FCC said new rules would allow end-to-end digital broadcasting in any BAS band and would simplify rules and increase spectrum efficiency. Commission also proposed to allow movie and TV producers to use wireless assist video devices on unused TV channels as long as incumbent users were protected from interference.
Radio station owners donating licenses and assets to nonprofit fine arts and performing arts groups would be given tax break under bill Rep. Andrews (D-N.J.) introduced March 15. HR- 1050 would amend IRS Code “to allow credits against income tax.”
WildBlue gave $16 million contract to ViaSat to develop and produce user terminals for Ka-band satellite broadband service (CD March 16 p5). Company didn’t release details on number of terminals ViaSat would manufacture, but analyst William Kidd of C.E. Unterberg Towbin estimated 20,000-30,000 units.
Correction: Southern Communications Systems, which is petitioning FCC to deny C-block license Salmon PCS won in recent auction, was identified erroneously as subsidiary of energy company Southern Co. (CD March 13 p5).
Satellite Bcstg. Communications Assn. (SBCA) voiced strong opposition to Real Estate Alliance petition to FCC for reconsideration of over-the-air reception device (OTARD) rule that would allow commercial property owners to control broadband services that are provided to renters in buildings they own. Commission said landlords couldn’t restrict renters’ access to services. Case is under review in U.S. Appeals Court, D.C. In filing, SBCA reiterated position that Real Access Alliance petition be denied by Commission and defended right of consumers to receive services. SBCA Pres. Charles Hewitt said Alliance petition “offers nothing new” and “merely mirrors the failed arguments that opponents have made in earlier filings.” He said that Commission actions were in best interests of public.
News Corp. spokesman confirmed Fri. company was beginning to look at “other options” beyond DirecTV deal as industry reports continued to indicate merger was on what one analyst called “shaky ground.” Spokesman said News Corp. was “still hopeful for a deal” but admitted companies weren’t close to agreement. Sticking point in negotiations has been control of merged operations, with GM Pres. Michael Smith reportedly putting together side deal with investors that would allow GM to spin off unit as independent company and recoup cash it needed for operations. Satellite analyst who has been following deal said News Corp is “in very strong position.” Others say that if Hughes hasn’t found buyer with more money. “It comes down to control,” analyst said. Meanwhile, EchoStar refused comment on reports that talks between CEO Charles Ergen and Murdoch were “going better than expected” in last 3 weeks as problems between companies have escalated.
Former Secy. of Treasury Robert Rubin, now chmn. of Citigroup Exec. Committee, will keynote and FCC Chmn. Powell will be luncheon speaker for “The Big Picture 2001” conference April 3 in N.Y. Conference, co-sponsored by Salomon Smith Barney and Bcstg. & Cable magazine, also will feature interview with AOL Time Warner Chmn. Stephen Case and CEO Gerald Levin, conducted by David Frost. Panel (moderated by NBC anchor Tom Brokaw) titled “The Internet One Year After the Crash” will include Richard Balluzzo of Microsoft, Martin Nisenholtz of N.Y. Times Digital, Thomas Rogers of Primemedia, Barry Schuler of America OnLine and Jeff Taylor from Monster.com. Other conference speakers include News Corp. Pres. Peter Chernin, Hughes Exec. Vp Eddy Hartenstein, Cox Communications Pres. James Robbins, Sony of America Chmn. Howard Stringer, NBC Pres. Robert Wright, Washington attorney and ex-FCC Chmn. Richard Wiley, Viacom Pres. Mel Karmazin, CBS TV Pres. Leslie Moonves.
Emmis Communications, which acquired TV stations owned by Lee Enterprises last fall, said it would eliminate 120 jobs in its 15- station TV Div. With most of cuts coming at former Lee stations, Emmis said action involved “the natural integration and the strategic reallocation of resources.”
Tenn. House Calendar & Rules Committee posted Senate-passed bill (SB-1282) to fully deregulate interexchange carriers on House consent calendar. Action means deregulation bill can bypass normal House committee process if no lawmaker objects. Under bill. which passed Senate unanimously March 13, interexchange carriers such as AT&T, WorldCom and Sprint no longer would be classified among public utilities subject to Tenn. Regulatory Authority (TRA) jurisdiction. Intrastate interexchange services of BellSouth and state’s 17 other incumbent telcos would continue to be subject to TRA regulations. Currently, IXCs can cut rates with advance notice but must cost-justify increases. TRA hasn’t taken position on bill, and there have been no significant objections from other interests.
Mass Dept. of Telecom & Energy (DTE) opened investigation into Verizon provision of special access for high-speed dedicated digital circuits because of CLEC complaints. DTE said its purpose was to determine whether Verizon special access services were being provided to other carriers in reasonable manner and whether company needed to take steps to improve service. Intervenor deadline is March 29. Preliminary hearing is April 4, followed by procedural conference to set rest of schedule. DTE said that in last several months it had been getting complaints from CLECs that Verizon quoted “extremely long” provisioning intervals, failed to meet those extended intervals, failed to keep carriers updated on order progress and had problems maintaining existing circuits. DTE said special access complaints surfaced during Verizon Sec. 271 review even though special access wasn’t 271 checklist item, and said informal efforts to resolve problems hadn’t worked.