Korea’s SK Telecom Pres. Pyo Moon-soo and China Unicom Chmn. Yang Xianzu signed agreement to jointly complete commercial build- out of China Unicom’s cdmaOne network, CDMA Development Group reported. Xianzu said China Unicom planned to complete first phase of network by Oct., reaching 200 cities and network capacity of 13.3 million subscribers.
Decision by U.S. Appeals Court, D.C., to apply strict scrutiny to FCC EEO rules “creates a substantial conflict in the case law,” Minority Media & Telecom Council and People for the American Way said in joint petition for rehearing (CD March 5 p9, Jan 17 p1). Petition said other courts had said repeatedly that such programs weren’t subject to strict scrutiny because they didn’t create racial preference. FCC made it clear in its rules that race or gender shouldn’t be basis for hiring decisions, petition said: “The FCC made it clear that it would use applicant pool data merely as an indicator that broad outreach has been achieved.” Minority groups also disputed Appeals Court ruling that they said “simply assumes that Option B makes non-minorities into victims of discrimination.” Petition seeks either rehearing or en banc hearing.
Canal Plus is proposing to buy 27.42% stake in Multithematiques, the Liberty Media theme channel unit, French company said Mon., with eye toward owning 66% of unit. Canal currently owns 27.42% of Multithematiques and would buy out other minority holders to total 66%. Move could give Liberty Media opportunity to buy 22.7% stake in U.K.’s BSkyB from Vivendi, which must sell shares under terms of merger with Seagram.
Ameritech warned Ill. Commerce Commission (ICC) that it might have to terminate DSL service in state if agency stuck to its Feb. order requiring company to open its upgraded DSL-capable remote digital loop carrier terminals to data CLECs. Carrier has been upgrading its lines for DSL service as part of parent SBC’s “Project Pronto” broadband network improvement. Ameritech told ICC that additional costs of accommodating DSL competitors at loop carrier terminal level would make service uneconomic and infeasible. Data CLECs disputed Ameritech’s claim, saying incumbents in other states were complying with orders to open their loop carrier terminals without threatening to abandon DSL service.
In case closely watched by satellite TV industry, U.S. Appeals Court, D.C., quizzed lawyers on both sides Mon. over FCC rules that preempt landlords, building managers and homeowner groups from blocking renters from installing DBS dishes and other types of TV antennas. Hearing oral argument in case, panel of 3 judges particularly grilled attorneys for Building Owners & Managers Assn. International, which brought suit against govt.’s regulations for over-the-air reception devices (OTARD). While judges also questioned attorneys for FCC and DirecTV, they directed most of their attention to building owners and wondered aloud why they hadn’t taken complaints about OTARD rules and supporting statutes to other forums. They also asked why landlords didn’t simply raise their rents to cover cost of alleged “physical taking” of their property and interference with their contractual relationship with tenants.
Crawford Communications and iBeam Bcstg. agreed to deal Feb. 28 in which former could resell iBeam’s Activecast Webcasting application and use its streaming media distribution. IBeam in turn could use Crawford’s production, encoding and satellite acquisition to provide turnkey services.
White House reportedly is nearing announcement of nomination of Tex. PUC Chmn. Pat Wood as head of Federal Energy Regulatory Commission (FERC). Wood had been rumored to be up for appointment by President Bush to fill Republican slot on FERC or FCC. Reports last week indicated Wood now was expected to be named FERC chmn. “We've had many inquiries,” said Tex. PUC spokesman, who declined to comment on reports. “We've had nothing new out of Texas.”
American Cellular, venture owned equally by Dobson Communications and AT&T Wireless, plans private offering of $450 million in senior subordinated notes due 2009. Dobson said American Cellular would use proceeds to pay down debt and to fund first 4 interest payments due on notes. In recent FCC filings, Dobson subsidiary said it had signed agreement with AT&T Wireless to transfer certain PCS licenses it won in recent C-block auction to joint venture (CD March 5 p6).
Aspen Law & Business published 2001 supplement to Federal Telecommunications Law, authored by Peter Huber, Michael Kellogg and John Thorne. Supplement updates 1999 reference book on Telecom Act implementation with more current information on issues such as unbundling of network elements, Bell competition in long distance markets, CALLS plan. Supplement is very comprehensive and clearly written although it has slightly pro-Bell slant, for example referring to FCC unbundling rules as going beyond Act’s intent. Kellogg and Huber are partners in law firm that represents Bells; Thorne works for Verizon -- 800-638-8437.
Comments are due at Mich. PSC March 8 on whether all wireless customers in suburban Detroit 810 code should be allowed to keep that code permanently. Alternative is for wireless customers to start being reassigned to new 586 relief code after extended permissive dialing period as numbers in old code dwindle to exhaustion. AT&T, Verizon and LLC Wireless urged permanent “grandfathering” of wireless customers in 810 to spare carriers burden of reprogramming customer phones. PSC asked national number administrator NeuStar for recommendation in case U-12588. In another numbering matter, PSC will hold public hearing March 19 in Grand Rapids on relief for depleted 616 code. NeuStar has recommended all-service overlay rather than split. PSC also warned Ameritech that 2% average local exchange rate increase company implemented last month as price cap inflation adjustment would be subject to refund if state courts upheld Sec. 701 of Mich. Telecom Act of 2000. That section imposed immediate 3-year rate freeze on Ameritech basic rates, but was suspending by court order pending outcome of Ameritech’s appeal.