Latest DTV station on air is WLNS-TV Lansing, Mich., NAB said. Group said 185 DTV stations now were on air.
Linda Kinney promoted to acting assoc. gen. counsel, FCC… Nortel COO Clarence Chandran takes medical leave of absence, with CEO John Roth assuming day-to-day control… Leo Hindery, HL Capital, elected to Keynote Systems board… Michael Pirrone, ex- Vyvx, appointed vp-strategic sales for broadcast and cable industries, GeoVideo Networks… David Berman, ex-PanAmSat, named CEO, Airia Limited… Jay Kernis, ex-CBS, appointed senior vp- programming, NPR… Advanced to shareholders (partners) Verner, Liipfert, Bernhard, McPherson & Hand: Marla Grossman and Julian Shepard, of counsel… James Rosenthal promoted to pres.-New Line TV… D'Anne Hurd, ex-NaviPath named CFO-gen. counsel, Vividon… Jan Aggerbeck, ex-@Network, appointed CEO, 2netFX… CNET reporter Patrick Ross, ex-Communications Daily, receives Maxwell Media Award for coverage of cable.
Alliance for Better Campaigns report “got it all wrong” in asserting that broadcasters in elections last year “gouged” political candidates and charged exorbitant air time rates, NAB officials said Wed. NAB Pres. Edward Fritts told press briefing in Washington that broadcasters “are abiding by the rules and regulations set forth by the Congress and administered by the FCC… The risks are too high and the rewards too low” for stations to break the law, he said. NAB Gen. Counsel Jack Goodman said stations didn’t steer candidates to premium spots; rather candidates were willing to pay premium rates for fixed ad spots to ensure greater visibility.
FCC rulemaking on Multichannel Video Distribution & Data Services (MVDDS)continues to stir debate in comments to Commission (CD March 14 p3). Startup Skybridge said it believed MVDDS systems such as one proposed by Northpoint were “grossly discriminatory against NGSO FSS systems that it plans to use. It said rulemaking “accepts practically every unsupported and contradictory assertion proffered” by MVDDS supporters while “ignoring the clearly documented and critical needs” of NGSO-FSS operators. EchoStar said conclusion by FCC on spectrum sharing was wrong and agency should examine its own history to make determination that “ubiquitous satellite service and ubiquitous terrestrial” cannot share same frequencies. Northpoint motives are opportunistic and form of unjust enrichment, EchoStar said: “There is no valid reason other than enrichment hopes” why Northpoint needs to operate service in DBS band (12.2-12.7 GHz). EchoStar said Northpoint could best service public interest by purchasing LMDS or wireless cable license, either at auction or in secondary market. DirecTV said rulemaking jeopardizes DBS in way that’s unfathomable. Idea that Northpoint will operate in DBS downlink band as good citizen without causing interference is untenable, it said. DirecTV said Northpoint’s proposed MVDDS was nothing more than fixed wireless service offering video and broadband capabilities and would be better off in another frequency band such as 2.5 GHz (MMDS), 24 GHz (DEMS), 28 GHz (LMDS) or 39 GHz. Meanwhile, Minority Media & Telecom Council (MMTC) backed Northpoint. MMTC said Northpoint’s service would aid minorities and rural residents while “increasing the diversity of voices available to all citizens.” Satellite Bcstg. & Communications Assn. (SBCA) and Boeing said they will challenge rulemaking launched during term of Chmn. William Kennard with petitions for reconsideration. Both plan to file next week.
Despite launch of Orbital’s BSAT 2a geosynchronous satellite for Japan’s Bcstg. Satellite System March 8 and sale of Orbcomm March 9, company still is struggling, analyst Paul Nisbet of JSA Research said. Orbital “will need much more of a jump-start” to become profitable, he told us. Company faces declining market for low earth orbit (LEO) satellites and has decided not to compete in market for geostationary birds, Nisbet said.
ICO-Teledesic Global, which controls satellite assets of Craig McCaw announced agreement Wed. with Ellipso to collaborate on building mobile satellite system, terms not announced. ICO- Teledesic subsidiary New ICO and Ellipso will work together on financial, business and regulatory issues related to deployment of satellite systems capable of providing wide range of advanced broadband services globally, they said. Companies said deal could lead eventually to strategic alliance and merger. “This is the first step” of Craig McCaw in “acquiring assets of Ellipso,” spokesman said.
ALTS said FCC could promote DSL competition if it barred ILECs from offering DSL capabilities to customers served by remote terminals until they gave competitors same capability. In reply comments on ILEC line-sharing requirements, ALTS said such action would “eliminate ILEC incentives to continue stonewalling competitors who want to provide services to those customers.” It said that while there was competition for DSL-based services there was “virtually no competition in the provision of the underlying local loop on which DSL rides.” ILECs’ arguments that they should be exempt from unbundling rules because DSL competition exists are “red herring,” filing said.
Mass. Dept. of Telecom & Energy (DTE) said Verizon’s obligation to provide adequate service throughout its territory doesn’t extend to optional features or high-speed data services. DTE made ruling as it denied pleas by Franklin County and towns of Athol, Petersham, Phillipston and Royalston for orders compelling Verizon to deploy caller ID, ISDN, digital subscriber line and T-1 services within their borders. Petitioners claimed that Verizon was (1) providing inadequate service to their residents by denying them access to features and high-speed data links and (2) discriminating unlawfully against them by concentrating its network upgrading efforts elsewhere in state. But DTE said Verizon was complying with service standards: “Verizon’s obligation to provide services does not extend to providing service features, advanced services or any services beyond basic telephone service.”
FCC denied petition for reconsideration of its June decision to approve AT&T-MediaOne merger. In order adopted Feb. 8 but not released until Wed., FCC rejected arguments for review in joint petition by Consumers Union, Consumer Federation of America and Media Access Project. Rejecting petitioners’ contention that agency’s decision was tainted by violation of ex parte rules, Commission said it had “relied on no other information or arguments” that were not part of voluminous record compiled in proceeding. Petitioners had alleged that AT&T had hundreds of meetings with Commission staff without filing adequate notification of substantive issues presented, violating agency’s rules. As for charge that Commission’s “overly generous” determination to give AT&T 12 months to come into compliance with cable ownership limits was “arbitrary and capricious,” FCC said decision rested on its finding that special circumstances warranted additional time and that grant, as conditioned, served public interest. Order doesn’t address any of issues presented to FCC by U.S. Appeals Court, D.C., in remanding agency’s limits on cable horizontal and vertical ownership, Commission said.
Nextel CEO Tim Donahue told Merrill Lynch investors conference in N.Y. that company expected operating cash flow in first quarter to be about 15% below 4th-quarter results. He attributed anticipated drop to “the impact of a slowing economy and related cost control measures being implemented by many businesses.” Company expects to add 500,000 subscribers in quarter. “In the current environment, Nextel is taking aggressive action to reduce costs, increase efficiencies and focus on profitability,” Donahue said. Nextel shares dropped 28.75% Wed. to $14.56 on Nasdaq, which is new 52-week low.