U.S. carriers outlined litany of concerns to FCC International Bureau Wed. on challenges they face when entering foreign telecom markets, with several companies stressing lack of enforcement in countries that have deregulation measures. Bureau held forum to solicit information it will use to supplement its 2000 edition of International Markets Report. Western Wireless International Pres. Brad Horwitz told forum that company had focused on foreign markets where cost of entry to obtain licenses was low, through processes such as comparative hearings rather than auctions. Having entered markets, process of obtaining interconnection is one of largest challenges, Horwitz said. On regulatory side, company faces challenge of lack of enforcement powers by agencies in countries where incumbent telco may be “the largest hard currency earner,” he said. “You make progress but it’s in small steps -- circuit by circuit.” Joanna McIntosh, AT&T vp-international affairs, told International Bureau that it would be helpful to have U.S. regulators link telecom issues discussed with foreign counterparts to market access issues. “There is no sense talking about joint statements on e-commerce if there is no infrastructure to take you there,” she said. Dan Gonzalez of XO Communications outlined gamut of market entry requirements, with U.K., Germany and Netherlands tending toward more flexible regulations. Countries such as Belgium and France are on more restrictive end of spectrum. Lawrence Spiwak, pres.-Phoenix Center for Advanced Legal & Economic Policy Studies, said “fundamental problem” was that foreign regulators frequently looked to example of U.S. telecom policy for guidance. “The U.S. is not setting a good example,” he said.
Nokia will deliver General Packet Radio Service (GPRS) equipment to wireless carrier Dutchtone under new agreement, terms not disclosed. Dutchtone said it planned to offer GPRS-based services this year.
DTV must-carry not only is important to speed DTV transition, it also is needed to assure continued diversity in TV programming, Cox TV Pres. Andrew Fisher said. He told Media Institute lunch Wed. that, in era of broadcast consolidation, DTV transition was necessary to preserve locally controlled TV, which in turn was critical to diversity. But for DTV to succeed, “we have got to get carried on cable,” he said. Fisher said there’s not single “viable” retransmission consent agreement for DTV carriage outside network-owned stations. He said cable “must be told to carry” DTV, probably by govt.: “Stonewalling is not in the cable, broadcast or public interest.” Fisher said transition would be aided by improved and affordable DTV display devices, as well as additional DTV programming. He also said there needed to be “healthy relationship” with broadcast networks, rather than increased pressure to carry all network programming. It’s “a very difficult time,” Fisher said, and transition “won’t happen unless there is equilibrium in the network-affiliate relationship.” Asked about current DTV standard, Fisher said he was confident VSB would continue to “improve markedly.”
Qwest lost agency-level protest at General Services Administration (GSA) on bridge contract for FTS 2001 awarded to Sprint and AT&T, incumbent bidders for original FTS 2000. GSA decision not to seek competitive bids for interim contract was “business judgment,” agency protest official Donald Suda said. “Qwest’s argument is really a difference with the agency’s judgment of what is ‘practicable,’ that is, where the agency drew the line,” Suda said. GSA had argued that Qwest couldn’t provide national long distance service under contract because it couldn’t provide interLATA services in states where former U S West didn’t yet have Sec. 271 authorization. Suda handed down decision late Mon. and it was made public Wed.
Pa. Commonwealth Court upheld Pa. PUC decision giving Armstrong Communications authority to provide competitive local exchange service in Citizens Telecom territory despite granting rural competition exemption to Citizens. Court in consolidated Doc. 1359-CD was deciding on cross-petitions in which Armstrong sought order overturning PUC’s rural exemption for Citizens, while Citizens sought to upset PUC’s certification of Armstrong. Court’s decisions hinged on PUC’s interpretation of clause in Telecom Act Sec. 251 that created exception for rural competition exemption for telecom affiliates of incumbent cable TV companies that were facing competition from cable affiliate of incumbent telco before passage of Telecom Act. In current case, PUC ruled that while cable TV competition between Citizens and Armstrong didn’t actually begin until 3 months after Telecom Act’s passage, Citizens was making final preparations for competitive cable foray against Armstrong months before Act’s Feb. 1996 passage so it could be considered to be “providing” competitive video programming. Court deferred to PUC’s interpretation, saying nothing in case record showed decision to be irrational or arbitrary.
GlobeCast introduced MCast line of satellite-based Internet services. New services include content delivery network, file distribution service, high-speed connectivity to N. American backbone, direct-to-subscriber distribution of IP content.
FCC is seeking comment on Cingular Wireless request for waiver to exclude from CRMS spectrum cap 1.5 MHz of 900 MHz SMR spectrum held by its subsidiary Cingular Interactive. In request filed March 7, Cingular said that spectrum company wanted to exclude was well below recognized amount needed to compete in broadband CMRS market and wasn’t interchangeable with any of Cingular’s cellular or PCS spectrum. Granting waiver would permit Cingular, in nonrural markets where it already has cellular license totaling 25 MHz, to obtain 2nd 10 MHz broadband PCS license without exceeding cap. Comments are due April 3, replies April 13.
Scientific-Atlanta announced tender offer to purchase outstanding shares of PowerTV it didn’t own already. Tender is being made to offer liquidity to PowerTV employees and other shareholders because of absence of public market for PowerTV shares under current conditions, company said. Scientific- Atlanta, which owns 85% of PowerTV, said if all other shares owned were tendered, it would record $45 million of goodwill to be amortized over 5 years.
Neb. Attorney Gen. Don Stenberg said TV ads depicting sex and violence that run during family programming are “almost defective” and that some states could be persuaded to pursue issue further. Stenberg made his comments to MPAA Pres. Jack Valenti at meeting of National Assn. of Attorneys Gen. (NAAG) in Washington Wed. Stenberg said ads showed violence and sex during programming intended to be appropriate for family viewing. Valenti said he believed there now was less sex and violence during movie trailers and ads than there had been in past.
Discovery Communications announced $700 million private debt placement agreement. Transaction is Discovery’s first private placement issuance and proceeds will be used for general corporate purposes including paying down some of existing bank debt, company said. Merrill Lynch was agent. Discovery said announcement was largest private media transaction in last 10 years.