Telecom regulation remains a problem in China, despite other reforms since it joined the World Trade Organization in 2001, the U.S. Trade Representatives said Mon. in its annual report to Congress. Problems exist in intellectual property rights (IPR), price controls, opaque regulatory procedures, reclassification of some value-added telecom services as basic, new Chinese technology standards, which are becoming barriers to entry, and other areas, the USTR said.
Nurturing online revenue is a priority at TV companies for the rest of 2006 and for 2007, executives at TV stations and cable networks told investors last week. Though the percentage of total sales that online revenue represents today is still small at traditional TV companies, in some cases immeasurably so, executives said they expect to see more money coming from online efforts next year. “Digital revenue is somewhere between 1 and 2% of our total revenue,” LIN TV CEO Vincent Sadusky said: “Our goal over the next 2 yearss is to get that number up significantly.” LIN TV shares rose 4% Thurs. after the company said Q3 revenue increased 27% from a year earlier $115.8 million on some station acquisitions, and profit rose 1.7% to $3.8 million.
Canadian telemarketers must pay the FTC $7.5 million for fraudulent billing practices, under a U.S. Dist. Court, Seattle, ruling, the agency said. The defendants called U.S.-based businesses and organizations and conned employees into “verifying” information for directory listings, then sending invoices for directory-listing purchases and referring those that didn’t pay to an in-house collection company, the FTC alleged in a 2005 complaint. Under the ruling, the companies also can’t sell business directories or listings to U.S. residents. The defendants were Quebec Inc., doing business as Global Management Solutions; Quebec “Inc,” doing business as Commutel Mktg. and Mktg. USA; and principal Ty Nguyen. The FTC also settled with the other 3 defendants, all former presidents of the defendant companies. Byron Steczko and Cory Kornelson agreed to permanent bans on directory business activity in the U.S. and will pay $3.8 million and $2.1 million. Phong Vo will pay $1.6 million. All judgments are suspended based on defendants’ inability to pay, FTC said.
Friend and foes of statewide video franchising bill AB- 2987 in Cal. may have set a new state lobbying expense record for a single bill in the April-June quarter, spending $23.3 million trying to sway lawmakers, an average $256,000 per day. AT&T alone spent an average $196,000 daily pushing the bill. So far, lobbying by AT&T and Verizon has helped the bill pass the Assembly and 3 Senate committees without a single “no” vote. The bill is awaiting final Senate floor consideration, perhaps this week. Lobbying expense reports filed with the Cal. Secy. of State show AT&T between April and June spent $17.8 million on AB-2987, while Verizon spent $1.7 million. The incumbent cable industry spent $3.8 million, at first trying to stop the bill in the Assembly. But after the bill’s unanimous late-May Assembly passage, cable companies changed their focus to getting amendments like a municipal franchise opt-out provision that would ease the sting of state video franchising for the cable industry. Comcast was the single biggest cable lobbyist, spending $3.1 million. Veteran bill-watchers called spending on AB-2987 unprecedented. Consumer groups and municipalities, still opposed to the bill, said the phone companies’ spending offers a textbook example of wealthy special interests buying public policy.
Revenue at Gannett’s TV stations’ websites rose 63% in Q2 from the same period a year ago, the company said. That growth, combined with increased political ad spending, helped fuel overall broadcast revenue for the quarter, with sales increasing 3.8% to $205.4 million from $197.9 million last year. Gannet also said June broadcast sales rose to 3.3% $60.3 million, compared to the same month last year.
Telemundo received it best-ever 2nd-quarter ratings, averaging 3.8 for its weekday prime time schedule, it said. The rankings confirm the rapid growth of Telemundo’s adult audience, officials said.
The FCC’s air-to-ground auction opened Wed. and at the close of the 4th round at our deadline Va.-based Unison Spectrum was the high bidder for the coveted nationwide license with a high bid of $3.8 million. A 5th round was getting underway. Unison isn’t considered among the prime contenders for the spectrum, which will be used to offer broadband on commercial airliners. Verizon Airfone is considered by many to be the leading contender, followed on many lists by AirCell (CD April 4 p10). In another auction development, the FCC granted a motion by AirCell to withdraw from the auction, but that wasn’t a surprise since the company has indicated it will bid as part of AC BidCo. In a big day for auctions, short form applications for the June advanced wireless services (AWS) auction were also due Wed. The number of contenders will be of more interest than usual since the FCC will keep bidder identity secret as the auction develops unless a sufficient number file short forms so that the FCC considers the auction likely to be competitive. Based on past auctions, the FCC is likely to release lists of potential bidders within the next 2 weeks.
NTIA plans no update of a minority broadcast media ownership study, as sought in April by the National Assn. of Hispanic Journalists ahead of expected FCC rule loosening, the Assn. said. NTIA’s John Kneuer told Assn. pres. Veronica Villafane that though no study will occur, the White House wants “American media [to] reflect the diversity of the nation’s people,” it said. Kneuer has been nominated to become director of NTIA, whose 2000 report found 3.8% of broadcast stations owned by minorities (CD April 6 p9). An NTIA official didn’t comment.
The U.K. Office of Communications awarded 12 wireless licenses for 1781.7-1785 MHz, paired with 1876.7-1880 MHz, it said Wed. The licenses, sold by auction April 20, are for a total of 6.6 MHz spectrum for such low-power purposes as private GSM mobile phone networks in office buildings or universities. Winners included BT, Cable & Wireless U.K. (England), COLT Mobile Telecom, and O2. The auction raised about Pounds 3.8 million ($7 million).
XM got double doses of federal regulatory inquiry this week, it said. In an SEC 8-K released just before its Thurs. earnings report, XM said the FCC and FTC are scrutinizing it on XM radio power emissions and compliance with several FTC rules. The regulatory inquiries added a layer of uncertainty to an otherwise optimistic quarterly report.