CompTel/Ascent praised S. African regulators for proposing pro-competitive rules for value-added network service (VANS) providers but said some further actions should be taken. In a letter Tues. to the Independent Communications Authority of S. Africa (ICASA), CompTel said it supported ICASA’s plan to create a technology- neutral approach to licensing VANS as well as ICASA’s decision to give VANS flexibility in the way services are provided to customers. However, CompTel encouraged ICASA to change proposed rules for encouraging investment by “historically disadvantaged individuals.” CompTel said it would be “preferable for ICASA to leave to commercial negotiations between prospective partners the level of investment of each partner rather than pre-determine that ‘historically disadvantaged individuals’ should have a minimum 30% shareholding in any licensed VANS provider.” Such a mandate could undermine ICASA’s competition policy by limiting “participation of foreign capital,” CompTel said. CompTel also urged ICASA “to adopt a series of pro- competitive measures to foster viable and sustainable competition, specifically measures to prevent major suppliers from engaging in anti-competitive practices.” CompTel said Feb. 1 was the date that VANS could be provided by competitors to S. African provider Telekom and the so-called Second National Operator. However, CompTel said: “Without pro-competitive regulation in place by the effective date insuring VANS providers have access to the key inputs, in the form of local leased circuits and capacity in international cable systems, this objective will be difficult to meet… The principal bottleneck faced by emerging providers of VANS is the first-mile access to their customers… ICASA’s proposal to exclude leased lines above 2 Mbits from price cap regulation adds to the competitive uncertainty of VANS providers… We, therefore, believe that commonsense regulation of bottleneck facilities is required.”
Grande Holdings and ES International (ESI) formed a joint venture and are expected to sign a 20-year agreement designed to strengthen Akai Product Holdings’ hand in the CE market. The joint venture, to take effect formally Feb. 1, will be headed by former JVC executive Harry Elias as chairman, while current Akai COO Gary Lafferty shifts to pres.-CEO, company officials said.
The communications industry is aiding relief efforts in the areas devastated by the recent Asian tsunami by donating equipment, services and financial aid. Companies are working with the Red Cross, World Health Organization and United Nations to help in Indonesia and the hardest hit areas of the Indian Ocean region, officials told us.
The Tex. legislative committee that will play a key role in passing any new state telecom act has outlined what it wants to see in legislation in the 2005 session, which convenes Jan. 11. The state House Regulated Industries Committee report calls for more rate-setting flexibility for providers and equal regulatory treatment for telecom providers regardless of the technology they use. State Rep. Phil King (R), committee chmn., said the main goal of a new Tex. telecom act “is to make sure that we can continue to help the industry move out of a regulated industry into a market-based industry,” while still providing an “appropriate” level of consumer protection. King’s committee spent several months in 2004 in hearings on new telecom legislation to replace the current state telecom act that expires this year. The panel also called for reducing intrastate access charges over a reasonable but defined time span, prohibiting PUC regulation of broadband and Internet services, and blocking municipalities from competing in wireless Internet access. The panel also called for restricting state universal service support to a single line, without any optional vertical services. SBC said it could support legislation that allowed retail markets to be as price competitive as possible, so that the markets will pick the winners and losers. Its competitors said any deregulation bill must give rivals a fair opportunity to compete in all markets and treat all providers equally with regard to state and local taxes and govt. fees. Consumer groups complained that they've been left out of the legislative discussions. Some consumer advocates said the legislature should just extend the current law 2 years without change because Congress and the FCC may establish an entirely new national telecom playing. Meanwhile, a new bill in Va. (HB-1765) would require the state Dept. of Corrections to provide telephone debit card systems to jail and prison inmates, good only on calls to the home of the inmate’s family. The systems would offer the lowest available commercial rates and there would be no time limit on calls. The limitation would be the debit account balance. The system would be an addition to the collect calling system now used. A new car phone safety bill in Conn. (SB-51) would prohibit motorists from using handheld cell phones while driving, except in emergencies. Violators would face a $75 fine. A bill in N.D. (SB-10) would rename the N.D. Rural Development Telecom Network Agency the Digital Dakota Network. The agency’s mission would expand to include creation of a statewide telecom network providing cost-effective voice, video and data services for education, govt. and rural economic development.
A merger between Alltel and Western Wireless would move fast through regulatory approvals, industry analysts predicted. They said the rumored deal would hardly face regulatory hurdles due to companies’ complementary rather than overlapping footprints. The carriers probably would have to divest overlapping spectrum, particularly in Kan. and Neb., analysts said. “If there is any divestiture I expect it to be very trivial,” Legg Mason Analyst Rebecca Arbogast told us.
The Dept. of Homeland Security (DHS) announced it has completed its “national response plan” (NRP), which is designed to established standardized communications procedures in time of emergency. FCC Chmn. Powell praised the plan, saying it would help “protect Americans by providing a comprehensive approach on how all elements of incident management, from the top of the Federal government to the local EMS responder on the scene, coordinate in times of emergency.” Powell said the FCC worked with several other federal departments and agencies to help develop the plan. DHS Secy. Tom Ridge said the plan will use the National Incident Management System (NIMS) to establish standardized training, organization and communications procedures for multi-jurisdictional incidents. The NIMS clearly identifies authority and leadership responsibilities, Ridge said. Powell said the FCC’s Network Reliability and Interoperability Council and the Media Security and Reliability Council “will continue their work to promote the rapid restoration of telecommunications and broadcast services in times of emergency.”
Media International Concepts (MEIC) is restructuring its business model to specialize in creating content for satellite radio, but critics have questioned the L.A. firm’s timing. XM and Sirius both say they're depending less and less on 3rd-party content providers as the companies grow their in-house production facilities. MEIC’s longstanding strategy has been to acquire and operate entertainment, educational programming and production companies and create synergies by exploiting traditional and emerging distribution channels, the company said. Its shift in focus, announced Mon., was prompted by management’s belief that the radio talk show market is rapidly growing and is a trend that presents them with “a giant opportunity.” MEIC officials said it wants to work with both satellite radio providers -- not compete against them -- and hopes to encourage shareholder growth by “cornering a sizable piece of this huge and growing market.” XM currently has 68 commercial-free music channels, virtually all of which are generated in- house, a spokesman said. Third-party provider Worldspace chips in African music and world music channels and Salem Communications stocks a Christian rock channel. On the news and talk radio side, XM depends on 3rd parties like Fox, CNN, MSNBC and Public Radio International to provide content, but the company’s own public radio channel is evolving, officials said. “As we get bigger we'll look at strategic opportunities to work with 3rd parties, but we do believe there is a big advantage in doing it ourselves,” an XM spokesman said. A Sirius official agreed. Sirius, which as little as 18 months ago was relying on outside outfits for almost all of its talk radio content, is “trending away from third parties,” the company said. All of Sirius’ 65 music channels are produced in-house, and all but 12 of the company’s 56 non- music are currently outsourced to “big, branded companies” like NBC, ESPN, National Public Radio and Discovery, the company said. Developing content in-house benefits XM and Sirius since they can retain creative control, quality control and timing of when a show or segment is introduced, they said. MEIC CEO Michael Marcovsky, a cable and cellular communications vet, is ex-chmn. of Nostalgia Network and former pres. of Olympic Entertainment Group.
Three Indian satellites photographed the coastal areas of Asia and Africa ravaged by the weekend tsunami to enable better coordination of relief and rescue efforts, the Indo Asian News Service reported. The satellites took the pictures Mon. and the National Remote Sensing Agency will process the images and collect the data on the devastated areas, the Indian Space Research Organization said. Data will be given to state govts. to coordinate emergency operations.
Many World Trade Organization (WTO) member countries fail to comply with their commitments under telecom trade agreements, according to comments filed with the U.S. Trade Representative (USTR). Commenters urged the USTR to continue to work with regulators in other countries to enforce the existing trade agreements and negotiate new ones. The comments were filed in the USTR’s annual Sec. 1377 review of the operation and effectiveness of all U.S. trade agreements on telecom products and services. The USTR is expected to conclude the review by March 31.
Competitive ISPs and VoIP providers spoke with one voice, urging the FCC to deny a BellSouth petition seeking forbearance from application of Computer Inquiry and Title II common carrier requirements to the transport component of its broadband services. They said the market for underlying broadband transmission services wasn’t competitive, contrary to the BellSouth claims. They said ILECs retained significant market power in the wholesale telecom services broadband market, and competitive carriers had to acquire such services from them.