Although it already has secured space on AOL Time Warner’s high-speed cable lines, EarthLink urged FCC to open all high-speed cable lines to independent ISPs. In its latest ex parte filings on Commission’s open access inquiry, EarthLink argued that “Internet access is an information service that is provided to the public via a telecommunications service” and that facilities-based providers of information services must offer nondiscriminatory access to their lines. EarthLink stressed that “increasing consumer demand for broadband services makes prompt Commission action on cable open access essential if consumers are to have meaningful choices of broadband Internet access providers.” Pointing to its own 4th-quarter growth, it said broadband “has now reached the point of exponential growth that was experienced in the dial-up Internet access market approximately 5 years ago.” EarthLink also warned FCC that U.S. Supreme Court could usurp Commission’s authority if it didn’t promptly decide “proper regulatory classification of cable modem service.” At same time, Comcast in ex parte presentation to FCC complained of service advances by MSO and increased competition it faced from DBS providers and cable overbuilders. Arguing that “the market is working,” company urged Commission to avoid extending open access mandates imposed on AOL Time Warner to rest of cable industry. It said cable Internet access “will continue to develop appropriately without government intrusion.” Comcast also said it was likely to extend its multiple ISP technical trial to other ISPs beyond Juno Online Services. In separate ex parte filing, AT&T said its multiple ISP technical trial in Boulder, Colo., had grown to include more than 300 cable subscribers. AT&T said test, now in 4th month, had 4 active ISPs -- EarthLink, Excite@Home, Juno, WorldNet. Company said 3 other ISPs -- IC&C (formerly RMI.net), MSN and Winfire -- still were working through “the technical and operational details of providing service and hope to be online soon.”
New Orbcomm owner hasn’t emerged despite earlier report that auction conducted by U.S. Bankruptcy Court in Wilmington, Del., was supposed to reveal winner by Fri. (CD Feb 27 p4). Auction opened at 10 a.m. March 2, with hearing to approve sale of assets originally scheduled for 5 p.m. Mon. in U.S. Dist. Court, Wilmington. “Things have happened but we haven’t set anything yet,” spokesman for Orbital said.
Young Bcstg. disputed EchoStar claim at FCC that it “conditioned” retransmission consent for Nashville and San Francisco stations on carriage of Young stations in other markets while charging excessive fees. After having local broadcast signals shut off in San Francisco and Nashville when it couldn’t reach agreement (CD March 2 p10), EchoStar moved fight with broadcaster to Commission, where it accused Young of attempting to get “arrangement” under which it would be paid “4 times for retransmission of network-affiliated stations.” Carriage complaint at FCC charged Young attempted to receive cash fee “above norm” for retransmission deals and making carriage of independent stations prerequisite for contract.
Pegasus Communications announced formation of new content development group, Pegasus Interactive Content (PIC). New unit will support initiatives in local Internet portals, broadband Internet access, digital TV, new media. Vp Nick Pago will oversee PIC and direct development and acquisition of appropriate content for each of emerging platforms.
Arch Wireless said net revenue jumped to $279.1 million in quarter ended Dec. 31, from $191.29 million same period last year. However, paging and wireless Internet messaging company said loss grew to $216.15 million from $64.96 million. Including acquisition of PageNet last Oct., Arch said it had 4th-quarter net revenue of $335 million.
Exigent Software Technology spokesman said Tues. “there’s nothing new to report” on incident in which cyberthieves gained access to to top-secret computer system codes that guide space ships, rockets and satellites from U.S. govt. contractor Exigent. Exigent confirmed that computer experts raided offices of information technology company in Stockholm, Sweden last month and found copy of proprietary source codes for OS/COMET software program. U.S. Air Force Space Command has plans to use OS/COMET software to control Global Positioning System from Monitor Station in Colo. Source codes explain how software programs work. Govt. spokesman also said “there’s nothing new to report on the incident.”
Digital Access, one of several broadband service providers seeking to compete against cable operators and phone companies, announced that it was suspending business operations “due to unfavorable capital market conditions.” Digital Access CEO Joseph Cece said company’s shareholders concluded that its inability to forecast timing and magnitude of recovery in senior debt and high- yield markets created unreasonable level of risk in executing its business plan. While “the market opportunity still exists for broadband service providers to attract and retain significant market share,” he said, financial markets no longer are willing to subsidize the heavy building expenses.
“One-on-One” with FCC Chmn. Powell highlights NAB State Leadership Conference Mon. at J.W. Marriott Hotel, Washington. Powell will immediately follow opening panel of FCC staffers. Members of Congress scheduled to appear include House Majority Leader Armey (R-Tex.), House Telecom Subcommittee Chmn. Upton (R- Mich.), Sen. Hollings (S.C.), ranking Democrat on Commerce Committee, and Sen. Cleland (D-Ga.) of Commerce Committee.
Sprint PCS partner UbiquiTel plans to sell Cal. spectrum of privately held Via Wireless, also a Sprint partner, to VoiceStream for $50 million. UbiquiTel said transaction would go through after it completed its own acquisition of Via. VoiceStream is buying 10 MHz of F-block spectrum that covers Fresno, Hanford, Merced, Modesto, Stockton and Visalia-Porterville along with 10 MHz of A-block spectrum in Bakersfield. Separately, UbiquiTel said it was increasing its senior debt facility by $50 million to help fund acquisition of Via.
NBC and Wink Communications signed fresh deal to expand their interactive TV (ITV) relationship. Under new agreement, Wink will produce enhanced-TV features for several major NBC shows and events, including Saturday Night Live, The Tonight Show with Jay Leno, various golfing events, Notre Dame football games and French Open tennis championship. ITV enhancements will include guest lists, guest bios, CD offers for musical guests, ticket information, show merchandise offers.