Two weeks past mandatory deadline set by Congress (CD Feb. 20 p3) to conduct tests and compile results, as of Fri. Northpoint was only terrestrial company that had submitted technology for testing by Mitre, officials said. Mitre had been hired by FCC to conduct testing of satellite and terrestrial equipment owned by DBS and terrestrial companies involved in dispute at Commission. DBS providers EchoStar and DirecTV also submitted equipment, but kept pressure on to have Mitre removed as testing company while challenging way tests were being conducted. Mitre is conducting tests at hq in Bedford, Mass. Congress had ordered FCC to complete tests by Feb. 19, but parameters for procedures weren’t finished in time to meet deadline. Northpoint CEO Sophia Collier told us she expected Mitre to release results of tests “on or around” April 9.
Prospect of strike against TV programmers and movie makers in spring increased greatly Thurs. when talks between Writers Guild of America and Alliance of Motion Picture & TV Producers broke off after 6 weeks of negotiations (CD Jan 17 p6). Both sides agreed principal issue centered on writers’ residuals for TV reruns and for cable, DVD, videocassettes. Guild contract with Alliance expires May 1. Studio negotiations haven’t started yet with 2 other unions -- Screen Actors Guild and American Federation of TV & Radio Artists -- whose contracts expire June 30. If TV-film industry is shut down, L.A. economist estimated it would cost city’s economy $250 million per week.
Timing of CTIA court challenge over scope of Advisory Council on Historic Preservation’s (ACHP) authority to promulgate rules that bind FCC (CD Feb 26 p7) is unfortunate, said PCIA Senior Vp- Govt. Relations Robert Hoggarth last week. “We have worked very hard for the last 8 months” on draft agreement on streamlining wireless antenna collocation review procedures, Hoggarth said. Nationwide program agreement was drafted by staffs of FCC, ACHP, National Conference of State Historic Preservation Officers (NCSHPO) and tribal representatives to try to streamline reviews on whether facilities such as towers may affect historic properties. FCC recently extended comment period for draft to provide tribal representatives additional time to submit comments and final action on draft is weeks away. “We have been working very hard with the ACHP, NCSHPO and the tribes to blunt the impact of the lawsuit,” Hoggarth said. Filing lawsuit over rules that implement Sec. 106 of National Historic Preservation Act so close to final action on draft agreement “poisons water” concerning ability of parties to bridge any remaining differences, Hoggarth said. CTIA lawsuit itself didn’t concern draft agreement on collocation but targeted broader ACHP regulations on siting and environmental impact designed to ensure that facilities such as towers have no adverse environmental impact on wireless properties. CTIA wants court to review final rule issued by ACHP in Dec. Assn. is arguing regulation goes beyond scope of ACHP’s rulemaking authority under NHPA, which defines council’s role as advisory and not regulatory.
Verizon’s local competitors in Pa. assailed its ad campaign intended to persuade influential entities that proposed structural separation of its operations would be contrary to public interest. Meanwhile, 2 Pa. state senators called on PUC to fine Verizon $5 million for flouting agency’s order to propose detailed separation plan. Verizon’s statewide ads claim structural separation would cost company $1 billion, threaten thousands of jobs, increase phone bills, jeopardize network reliability and exclude Pa. from new information economy. CompTel said Verizon ad claims were “unsubstantiated” and campaign was intended to preserve carrier’s “stranglehold” in local market. Competitor-supported Pennsylvanians for Local Competition urged PUC and lawmakers to ignore what they charged were Verizon’s “scare tactics” and proceed with separation of its wholesale and retail operations to ensure development of truly effective local competition. State Sens. Roger Madigan and Mary Jo White, both southeastern Pa. Republicans, urged $5 million PUC fine for Verizon’s “deliberate failure” to propose by Feb. comprehensive structural separation plan that complied with PUC directives. Verizon instead proposed alternative to separate just Internet access and high-speed digital data services. Verizon said there was no legal basis for fine lawmakers seek. Spokesman said carrier “has complied fully with all PUC directives and requirements in this case.” Madigan and White, frequent Verizon critics, have participated in PUC structural separation case for last 2 years. Third lawmaker involved in proceeding, state Sen. Vincent Fumo (D-Philadelphia), agreed to data-only separation plan in Dec., providing Verizon bankrolled legislature-controlled state economic development fund. In related matter, Verizon called AT&T petition to N.J. Board of Public Utilities for Verizon structural separation in that state (CD Feb 28 p7) “a desperate attempt” to keep telco out of interLATA long distance market. Verizon said separation in N.J. would cost customers $300 million annually due to inefficiencies and duplications.
FCC’s latest Telephone Subscribership Report shows penetration rate in Nov. 2000 was 94.1%, unchanged from year before, but as expected it was lower -- 80.4% -- for households with annual incomes below $5,000 and higher -- 98.3% -- for those above $60,000. Other statistics: (1) Lowest rate per state -- 86.6% -- was in Ark. and highest -- 97.9% -- in Minn. (2) Households headed by whites had penetration rate of 94.9%, those headed by blacks 88.9% and Hispanics 90.4% -- www.fcc.gov/ccb/stats.
“Streaming media may be one of the most powerful tools for distributing music we've ever seen,” RIAA Pres. Hilary Rosen said Thurs. at Kagan streaming media conference in N.Y., but she said it was critical that parties “get the issue out of the courtroom and into the conference room.” Rosen told Webcasters that music industry was “eager to work with you” to negotiate contracts to license delivery of music via Internet. She said getting music online wouldn’t be “sprint,” but couldn’t be “marathon” either because consumers wouldn’t wait that long: “A legal framework, from laws to licensing agreements, is the best way… to ensure that we can do business in real time without the constant drag of disputes.” Rosen again highlighted importance of intellectual property: “A lot more than one technology is at stake. For our economy to flourish, we have to protect intellectual property.” Rosen also invited broadcasters to negotiate for rights to simulcast their programming on Internet, saying “we don’t think consumers should have to wait for a resolution in the courts.” She said other industries shouldn’t make same mistake that music business did by waiting too long to develop acceptable Internet delivery technologies: “If there is a vacuum in the marketplace, it will be filled by pirates.”
XM Satellite said Pioneer radios were available now at Best Buy, Circuit City, Crutchfield, RadioShack, Sears. Consumers have choice of several models, XM said. It said XM tuner models would be compatible with head units sold by Alpine and Pioneer in spring and summer car stereo selling season. XM tuners offer backward compatibility with previously sold head units. Meanwhile, XM said it had raised $201.4 million for operations in public stock offering. Money will be used to fund operations through 2002.
Wyo. legislature passed bill to offer universal service subsidies to encourage local service competition by wireless phone companies. It also voted measure to curb intrusive telemarketing. Both bills have been sent to Gov. Jim Geringer (R), with his signing expected. Wireless bill (HB-52) would allow wireless carriers to receive subsidies from state universal service fund if they offered flat-rate local calling throughout their coverage areas. Wireless local service also would have to offer 911, operator and long distance access plus toll restriction capability. PSC would determine wireless carrier eligibility and could cap amount available from $3 million fund for wireless support. Telemarketing measure would direct PSC to impose fine of up to $5,000 per call for calls to users who have put their name on national “no-call” telemarketing list maintained by Telephone Preference Service of Direct Marketing Assn., Farmingdale, N.Y. Contact would be banned effective 60 days after person put name on list. Exemptions include company calling its established customers and merchants making under 225 unsolicited calls annually. Fine also would apply to telemarketers who failed to immediately identify themselves and disclose nature of call. Measure would require telemarketers to register with state attorney gen. before soliciting Wyo. residents.
Freshman Rep. Honda (D-Cal.) is defending e-rate against possible changes by Bush Administration and trying to enlist support of industry. He has been making series of calls this week to high-tech media on subject, pushing idea that e-rate is good for high-tech businesses. Having schools without Internet access will hurt companies’ future employer base, he told us, and will “slow down the creation of the end-user population… Once [kids] leave school, they become consumers.” Honda said proposal floated by Administration to merge e-rate into other Education Dept. grants to states would take away “the very thing that makes the e- rate successful. It’s specific, targeted, it has a very clear mission.” Once that money is pushed into larger Education Dept. budget, he warned, it’s likely to be diverted: “School systems have a lot of needs.”
Media defendants won 5 of 11 libel and related trials on First Amendment issues in 2000, but average of awards to plaintiffs was highest in 21 years Legal Defense Research Center has been keeping track, Center said. Average award in 6 trials lost by media last year was $5.6 million, while median award was $2.5 million, highest ever, Center reported. High figures were skewered by $24.5 million awarded by Mo. state court in Doe vs. TCI Cablevision, which already has been set aside by higher court, Center said. In 21 years records have been kept, awards against media have been reduced on appeal in more than 2/3 of cases, it said. Center report with descriptions of all cases tried last year is available for $20 -- 212-889-2306.