AT&T Broadband told at least one city it’s backing out of its proposal for waiver of franchise fee on cable modem service in light of court ruling that high-speed Internet offering is telecom service (CD Jan 29 p9). Portland, Ore., official said company informally told city that it wouldn’t push for waiver of cable modem fees. Company had written to cities in 9th U.S. Appeals Court, San Francisco, jurisdiction asking them to either waive franchise fees or sign agreement acknowledging “the potential refund liability and agreeing to offset AT&T Broadband’s future franchise fees.” With Feb. 15 deadline for cities to respond passing, AT&T spokesman said company would continue to collect franchise fees and pass cost on to customers: “There is no change in our behavior.” He declined to provide details of cities’ responses or number of cities that had agreed to fee waiver. Michael Stover, asst. mgr. of Lakewood City, Cal., which had warned AT&T that withholding franchise fees would put its franchise in jeopardy, said he hadn’t received formal response from AT&T but “the grapevine has it that the company has retracted.” Meanwhile, Cox, which had notified 9th Circuit cities that it intended to stop collecting franchise fees, ceased collection in Nov., spokeswoman said.
Broadcast equipment maker Chyron loss plunged to $5.4 million in 4th quarter ended Dec. 31 from $1.8 million loss year ago. Revenue dipped to $11.4 million from $12.8 million.
BT N. America signed interconnection agreement with iBlast Networks to aid in delivery of broadband data services via broadcast TV spectrum, companies said. Under agreement, BT will provide satellite uplink service for iBlast to deliver Internet and other content to TV stations for re-broadcast. Terms weren’t disclosed.
Los Alamos Labs is claiming 20% reduction in data rate required to deliver same amount of DTV content, using its newly developed compression algorithm. Labs, which are run by U.S. Dept. of Energy, are billing new algorithm as “interim solution” to DTV transition, since it said lower data rate could free capacity for standard-definition video to be carried on HDTV channel. Better compression could help broadcasters avoid spending “millions of dollars” on redundant transmission systems, said algorithm developer George Nickel. New algorithm is said to be outgrowth of research that Labs did on image processing for underground nuclear testing. Labs are seeking licensees for technology -- 505-667-5844.
Some top civil rights leaders active in telecom and broadcasting fields have privately adopted “hands-off” policy during “honeymoon period” of FCC Chmn. Powell and are encouraging political supporters to do same thing, officials confirmed. It’s effort to allow 2nd consecutive African-American FCC chmn. to maintain conservative constituency and “grow into a difficult job” formerly held by William Kennard, “who seemed to always be under attack” from public interest groups, board member of one civil rights telecom group told us. “We don’t want to undermine” Powell agenda, civil rights telecom attorney said: “It’s a conscious choice many of us have made.” FCC officials wouldn’t comment.
Tenn. Senate Transportation Committee passed pair of bills to ban drivers under age 18 from using any type of mobile phone while driving, except to call 911. SB-10 would ban car phone use by any such driver and companion SB-9 would ban car phone use by drivers on learner’s permit or learner’s intermediate license, which usually means drivers under 18. Penalty would be $100 fine. Drivers on learner’s permit or intermediate license would have to wait additional 90 days before advancing to next step of state’s graduated licensing process for new drivers. State Sen. Steve Cohen (D-Memphis) said bill targeted teen drivers because they were inexperienced and more prone to distraction.
Boeing Electron Dynamic Devices won new contracts worth more than $34 million to provide traveling wave tube amplifiers and electronic power conditioners to Alcatel Space and Space Systems/Loral, company announced.
While differing on some details, wireless carriers and equipment makers in comments last week urged FCC to make additional spectrum available for 3rd generation and advanced services. Among most pointed recommendations were those of equipment vendors such as Ericsson, Motorola and Qualcomm, which pointed FCC toward spectrum now occupied by federal govt. users in 1.7 GHz band as ideal for 3G. Motorola urged Commission to alter auction process so that part of proceeds could be used to help pay for relocating incumbents. In move that may require legislative change, Motorola said that would avoid pitfall of current system “where the true costs of relocating incumbents only becomes known to successful bidders after the auction.” Several commenters stressed need for FCC to make more spectrum available on faster timeline than that laid out under several agency proposals.
Changes at Columbia TriStar TV Distribution: Joseph Kissack, John Rohrs and John Weiser advanced to lead Sales Div.; Promoted to senior vp: Dirk Johnston, southwestern region; Steve Maddox, southeastern; Thomas Warner, midwestern; Jeffrey Wolf, northeastern and business development; Mark Wurtzel vp-western region… Changes at Citizens Communications board: Rudy Graf adds vice chmn. to pres.-COO title; Scott Schneider adds vice chmn. to exec. vp title… Tish Robinson, ex-WUHF-TV, Rochester, N.Y., chosen gen. mgr., WRWB-TV, Rochester… John Sidgmore, WorldCom, will keynote NAB’s “Broadband - The Dawning of a New Era in Communications” session in Las Vegas, April 24… James Walz, ex-Iridium, appointed CEO, More Magic, replacing Mika Nieminen, who becomes chief technical officer… Robert Keane promoted to pres.-Comcast Business Communications… James Forcier, pres. of Chazy & Westport Telephone, named OPASTCO chmn… Kevin Brockman, ABC senior vp-entertainment communications, reelected chmn. of TV Publicity Executive Committee; Marcy De Veaux, pres. of DVG Communications, elected vice chmn… Jeffrey Sine, ex-Morgan Stanley, joins UBS Warburg as head of technology, media and telecom investment banking… Douglas Darfield, ex-Univision, appointed senior vp-Hispanic services, Nielsen Media Research… Tex. PUC Comr. Judy Walsh will leave agency in mid-March, with 3 years remaining in current term, to serve in Bush Administration’s energy policy transition advisory team; Gov. Rick Perry (R) hasn’t named replacement.
Nine members of Wash. state’s House delegation urged FCC Chmn. Powell to move “expeditiously” on VoiceStream-Deutsche Telekom merger and to keep international trade implications in mind. “There is no way in which this merger reduces competition in the United States or in any way harms U.S. consumers,” bipartisan group of representatives said. Letter was signed by Wash. Reps. Nethercutt (R), Dunn (R), Dicks (D), Hastings (R), Smith (D), Inslee (D), McDermott (D), Larsen, Baird. Members also said European Commission recently urged U.S. to abide by its World Trade Organization basic telecom agreement commitments. “If the FCC were to disregard those commitments, or to interpret U.S. law or its rules in a manner that conflicted with those commitments, the FCC would start a trade war that could damage exports in any sector of the U.S. economy, not just telecommunications.”