Despite earlier reports that Boeing might lose key launch of Air Force’s evolved expendable launch vehicle (EELV) program next year, Boeing spokesman said “more up-to-date information” resulted in Air Force announcing that Boeing would still be expected to launch vehicle in May 2002. But Air Force could switch to Lockheed Martin if Boeing vehicle couldn’t be flown. Air Force was said to be taking steps to move launch from Boeing to rival Lockheed Martin. Move would echo reported transfers of 90 postponed launches from satellite companies. Forty of postponed launches were Boeing and Lockheed Martin flights for SkyBridge project. They were supported by Alcatel and ICO-Teledesic Global led by Craig McCaw. Spokesman for ICO-Teledesic wouldn’t comment on whether company had alternative plans in place after postponement. Lockheed Martin spokesman also declined comment.
House Commerce Committee announced following witnesses for Thurs. hearing on DTV transition: Martin Franks, exec. vp, CBS/Viacom TV; David Arland, dir.-govt. relations-Americas, Thomson Multimedia, on behalf of CEA; Lowell Paxson , chmn., Paxson Communications; Steve Weed, pres., Millennium Digital Media, for ACA; Beth Courtney, pres., La. Public Bcstg., for APTS; Ben Tucker, vp-bcst. operations, Fisher Bcstg., for NAB; Michael Willner, pres., Insight Communications, for NCTA; Ronald Parrish, vp-govt. affairs, RadioShack; Chris Cookson, exec. vp, Warner Bros.
IBlast said it would begin testing local emergency alert system in April for its broadcast datacasting system. IBlast is testing its overall service in 5 cities and will add emergency alert in several, it said. Service will deliver alert messages directly to PCs accessing service.
As expected, VoiceStream shareholders approved proposed merger agreements with Deutsche Telekom (DT) and DT and Powertel. In separate meeting, Powertel shareholders also approved transactions. Merger agreements still await approvals by FCC and Committee on Foreign Investment in U.S. Separately, VoiceStream and DT submitted ex parte filing to FCC rebutting some of foreign ownership concerns raised by ranking Senate Commerce Committee Democrat Hollings (S.C.) (CD March 8 p8). They cited Hollings’s argument that Sec. 310(a) of Communications Act should apply to merger. Companies said that section applies to radio licenses held directly by foreign govt., but doesn’t bar foreign govt. from obtaining indirect control over common carrier license. (German govt. now owns 59% of DT, but that level will be diluted after merger is completed). Sec. 310(b), which companies said should be applied to their merger, applies when foreign govt. owns interest of more than 25% of capital stock of corporation that controls U.S. subsidiary, filing said. “Indeed, the Commission could not have granted the merger applications filed by AirTouch and Vodafone, or British Telecom and MCI, if Senator Hollings’s interpretation of Sec. 310 were correct,” companies wrote.
Only 40% of consumers have heard term “broadband” and even 45% of that group can’t define word, CTAM said in its latest study. In its continuing poll of consumer attitudes on cable and telecom issues, CTAM found that consumers were most aware of high- speed Internet access features and benefits, including choice of ISPs; constant online connection; much faster Web access; ability to be online and on phone at same time with one phone line. Study said younger and high-income consumers were more aware than others. CTAM said: (1) At least 40% of surveyed consumers found high-speed Internet access very desirable. (2) 25% were interested in remote Internet access while traveling. (3) 45% were interested in streaming some type of programming to their PCs. (4) 25% were interested in watching full-length movies, film clips and news clips on PCs. (5) 63% of African- Americans and 54% of Hispanics were interested in at least one type of streamed programming.
CWA called for full FCC audit of AT&T Broadband’s cable franchises for alleged violations of agency’s public disclosure rules. Union said it found in preliminary survey of dozen AT&T franchise locations that company management had refused public access to records; didn’t make files available to public; maintained incomplete and outdated information. CWA told FCC that “especially troubling is the failure of AT&T franchises to maintain complete signal leakage logs and proof-of-performance records” that would demonstrate compliance with Commission’s technical standards for cable operators. Audit is needed to ensure compliance with those rules and technical standards, it said. Union said Commission also should levy financial penalty “commensurate with the record of violation of these rules.”
APTS is asking Bush Administration for $699 million over 5 years for public TV’s conversion to digital, APTS spokeswoman said. Last year, APTS asked for only $450 million over 5 years, strategy that was controversial within PTV industry, where consensus was $771 million was needed. President Clinton asked for $450 million, but Congress declined to appropriate forward funding for DTV and gave only $44 million of $110 that he sought for FY 2001. This year, with PTV facing 2003 deadline to convert to digital, “it’s getting serious for Congress,” APTS spokeswoman said. “They've got to find a way to help us out.” She said PTV’s request wasn’t for straight $140 million per year, but rather contained “a little more upfront” to help stations meet 2003 date.
Despite provisioning and customer service problems, DSL continues to gain market share on cable modems, Harris Interactive said. Harris said its Consumer TechPoll study showed that DSL’s share of broadband users market rose to 39% in Jan. from 24% last April, while cable modems’ share shrank to 51% from 65% in same period. Study found that DSL connections accounted for 75% of all new broadband subscribers over 9 months, but cable modems for just one in 6 new customers. Harris researchers said cable modem subscribers generally were more satisfied with their service but DSL was gaining ground because of its greater marketing and improving service area coverage. Survey found that number of U.S. broadband households reached 5.1 million in Jan., up from 3.6 million last April.
U.S. music licensing group BMI said it signed Internet rights agreements with 15 more performing rights organizations. Deals, in addition to those signed last fall, represent “the substantial majority of the world’s repertoire,” BMI said. It said deals meant BMI-licensed Web sites would have rights coverage among 19 countries and it would start offering international rights clearance retroactive to Jan. 1. “This agreement is the first step toward achieving global synergy in the area of digital licensing,” BMI Pres. Frances Preston said.
Gilat Satellite Networks, taking $29.4 million in charges to write off investments and in-process R&D, reported $10.2 million 4th-quarter loss against $23 million profit year ago as revenue rose to $174.6 million from $108.9 million. In posting loss and conceding slowdown in VSAT business, Gilat said it would take another unspecified charge against earnings to cover restructuring that includes layoffs. As result, it revised earnings to $25 million ($1 per share) for 2001 on revenue of $575 million, down from analyst projections of $2.43 per share. However, Gilat said earnings would double in 2002 on $675 million revenue.