Conn. Dept. of Public Utility Control (DPUC) asked FCC to authorize trial of service-specific area code overlay for wireless carriers and any other providers not capable of local number portability. Petition didn’t specify whether overlay should go atop 203 (New Haven) or 860 (Hartford) code, both of which are projected to run out of numbers by end of 2002. DPUC said its request was based on Dec. FCC request for comments on using service- or technology-specific area codes as relief tool. If FCC grants permission for test, DPUC will determine which depleted code would get wireless overlay. If 203 were chosen, new code would be designated 475; if 860 is chosen, new code would be 959. DPUC said service-specific overlay would delay need for further code relief for “extended period” of time.
Gemstar-TV Guide International reported large net loss of $126.2 million for 4th quarter ended Dec. 31 despite huge surge in revenue to $358.1 million and in operating cash flow to $112.3 million. Company credited revenue and cash flow gains to its takeover of TV Guide last year and its own internal growth. But Gemstar, which had $23.1 million profit in 4th quarter 1999, also blamed TV Guide for its big loss, citing $227.5 million in amortization costs for intangible assets from acquisition. It said revenue rose sharply for its technology and licensing unit, interactive platform division and media and services sector as more cable operators installed its interactive programming guide (IPG) in subscriber homes. Company said its IPG now was in more than 10 million households, up from 8.5 million in Nov.
Telekom Austria launched SkyMultiMedia Thurs. after successful trials, offering broadband data connections via satellite to send large amounts of data for multimedia transmissions or broadcasts. Before start of service, Telekom Austria only offered high-speed Internet through fixed lines.
AT&T Broadband said it reached 3 million digital cable subscribers Wed., signing up latest customer in Cypress, Cal.
Tellabs lowered its revenue and earnings projections for first quarter 2001, blaming “below-trend growth” in its Cablespan cable telephony line and inability to recognize revenue in first quarter from its new Titan 6500 cross-connect system. Company now projects revenue will be in $830-$865 million range, down from with earlier expectation of $865-$890 million. Earnings per share were reduced to 35-38 cents from earlier 39 cents. Tellabs makes optical networking, switching and broadband access products.
Boeing Satellite Systems confirmed Thurs. Pres. Tig Krekel resigned without warning, spokesman said. Krekel’s top aide, Exec. Vp Joseph DeSarla, also left company for personal reasons, Boeing said. Krekel has been credited with improving operations and growth of satellite company in volatile marketplace plagued by sagging investor confidence, consolidation and stringent export controls that have hampered U.S. satellite operators. Boeing spokesman didn’t say why 2 top officials left and neither was available for comment. There also was no indications of their plans.
InSight Telecommunications will provide satellite capacity for NBC News Channel, network’s subsidiary responsible for collecting and transmitting news content to affiliates, terms not announced. NBC News Channel will have 3 full-period Ku-band transponders on GE-2 satellite and occasional-use capacity as needed on InSight’s 24 Ku-band transponders on GE-2, along with capacity Anik F1, E1, E2.
Iridium Satellite announced 13 service provider agreements Thurs. to distribute Iridium’s commercial service worldwide when it launches next month.
News Corp. Chmn. Rupert Murdoch reportedly is eyeing deal with EchoStar or return to Sky Global IPO as talks with Hughes for purchase of DirecTV “drag on,” industry source said Thurs. “He’s starting to get impatient with slow pace” of negotiations, but he “still believes he can pull the deal off. Everybody in industry, including Murdoch, expected the sale to be completed by now.” However, sources close to and outside company believe Murdoch is starting to consider alternatives to purchase of DirecTV, and EchoStar is viable opportunity. In recent days, Murdoch has gone out of his way to praise EchoStar CEO Charles Ergen, his long-time rival, calling him “tremendous businessman. “The talks are starting and stopping and it’s not clear to anyone when the deal might be done,” industry official said.
Insight Communications cut its operating loss to $22.1 million last year as its revenue nearly doubled to $476.2 million and its operating cash flow also almost doubled to $214.1 million. Insight said its net loss for 2000 totaled $42.9 million because of high interest and depreciation costs. For 4th quarter ended Dec. 31, it said its revenue rose to $123.2 million and operating cash flow to $56.3 million. But MSO didn’t disclose its quarterly net income. Insight said it signed up 30,100 digital cable subscribers in quarter to end year with 103,300 -- 13.3% of homes marketed. Company said it added 6,700 high-speed data customers to close year with 30,300 -- 2.5% of homes marketed. Insight, which recently picked up additional cable systems in Midwest from AT&T Broadband, projected that its revenue and operating cash flow would climb to $169 million and $75 million, respectively, in first quarter. Company said it expected to spend $300 million on plant rebuilds, cable telephony deployment and digital cable expansion this year.