Radarsat and PCI Geomatics announced new license agreement that would give OrthoEngine and EASI/PACE software solutions additional licenses, terms not announced.
Local TV stations “gouged” candidates during 2000 political campaigns by taking advantage of “loopholes” in lowest unit charge (LUC) provision of Communications Act, Alliance for Better Campaigns charged Thurs. Alliance said candidates in top 75 markets spent $771 million on 484 TV stations -- 65% more than they should have been charged under LUC. When all 210 TV markets are included, Alliance estimated candidates spent about $1 billion for TV time last year. Figure doesn’t include so-called “soft money” spending by advocacy groups, which isn’t subject to LUC restriction. Report, titled Gouging Democracy, claims stations “steered candidates” toward paying premium rates for “nonpreemptible” spots and “as election day neared, these premiums rose.” Alliance Exec. Dir. Paul Taylor charged that “television broadcasters are driving up the cost of politics for their own profit. Worse, they're doing it with a valuable public resource [spectrum] entrusted to them, free of charge, on condition that they serve the public interest.” Alliance quoted Senate Commerce Committee Chmn. McCain (R-Ariz.), prime supporter of campaign reform act that’s scheduled for Senate vote later this month, as saying: “The television industry has become the leading cause of the high cost of modern political campaigns. It needs to become part of the solution.” NAB official disputed contention that stations were steering candidates toward nonprotected rates under LUC, saying broadcasters were complying with that restriction.
AOL Time Warner will form new TV networks group under Turner Bcstg. System umbrella that will encompass the WB broadcast network and all of Turner’s basic cable networks, including TBS Superstation, TNT, CNN, Cartoon Network and Turner Classic Movies. AOL Time Warner said TV network group, which it called world’s largest, would be headed by WB CEO and founder Jamie Kellner, who will become chmn.-CEO of Turner Bcstg. Kellner will replace current Turner Bcstg. Chmn.-CEO Terence McGuirk, who company said will “step back from a direct operating role” and become vice chmn. In other management changes, Turner Pres.-COO Steven Heyer will leave AOL Time Warner to “pursue other interests” and Turner CFO Wayne Pace will take on added role of vice chmn. In internal e-mail to WB staff Tues., Kellner said he would remain involved in management of WB and Kids’ WB! networks but would rely more heavily on WB’s senior management team. He said he would split his time between WB’s Burbank offices and Turner’s Atlanta hq, “with a majority of my time spent in Atlanta.” AOL Time Warner said Kellner “will relocate his family to Atlanta to oversee the expanded Turner operations.
France’s Altitude Telecom chose Ericsson to provide LMDS equipment for its broadband fixed wireless network in Normandy, terms not disclosed. Ericsson said equipment covered under agreement includes customer terminals, central radio nodes, IP routers, installation. Altitude won 2 wireless local loop licenses in France last year to provide service in 26 GHz band.
Regulators grappled at ITU information session on IP telephony in Geneva Tues. with how to preserve universal service on new networks while opening competition beyond legacy systems controlled by incumbent operators. Day-long information session was held before start today (Wed.) of World Telecom Policy Forum on IP telephony, first summit on that topic hosted by ITU. “IP telephony can spur the deployment of Internet facilities in developing countries,” said FCC Comr. Ness on panel, echoing point raised elsewhere in information session that IP technology could “leapfrog” legacy systems in areas that still didn’t have full build-out of circuit-switched systems. “The FCC encourages governments to remain open to the development of IP telephony. To the greatest extent possible, market forces should continue to drive advances,” she said.
Movie and TV industry could soon face Napster-like problem of Internet file sharing, particularly as broadband Internet access becomes more widely available, MPAA Exec. Vp Fritz Attaway told CEA’s Digital Download conference in Washington Tues. He cited study that indicated that 350,000-400,000 full-length movies were being illegally downloaded via Internet every day, with figure expected to grow to one million daily by end of year.
City of Detroit decided it’s time to upgrade overburdened and obsolete 911 emergency calling system after seeing report that 5% of such calls in Dec. were put on hold or blocked by busy signals. Motor City will be soliciting bids on $40 million project to expand 911 center and install new technology, and city officials expect new facilities to go into service by 2003. Records for Dec. show 5,700 of 119,000 calls to 911 were unable to get through. Detroit 911 currently has staff of 109 and has 30 phone lines into its 911 dispatch center.
Loss of NASA contract for suspended X-34 project will cost Orbital $10 million, according to report by satellite analyst William Kidd, C.E. Unterberg Towbin. Kidd believes revenue loss will be offset by termination payment from NASA. He said company backlog for $89.7 million project probably was $15-$20 million. Orbital was prime contractor for project.
Teleglobe announced $150 million sale of broadband services to Telecom Italia including local access IP transit, high- bandwidth connectivity, voice services, others. Teleglobe also will give Telecom Italia colocation hosting services in Fla., N.J., N.Y.
Convergys is buying British company Geneva Technology for $692 million in stock, companies said Tues. Convergys, spun off from Cincinnati Bell, offers support services such as bill processing to telecom carriers while Geneva provides billing software for carriers, utilities, online markets. Convergys Chmn. James Orr said merger accomplished several of company’s goals, such as expanding markets outside U.S., gaining stronger position in IP-based billing, broadening product line. He said Geneva’s software was “strong complement” to Convergys products. Agreement signed Mon. calls for offering 17.6 million Convergys shares to Geneva’s stock and option holders. Convergys said it expected acquisition to produce revenues of at least $70 million this year, $125 million in 2002, $210 million in 2003.