Liberty Satellite said it withdrew application, originally filed Aug. 11, for inclusion in National Market tier of Nasdaq. Closing bid price of Liberty Series A common stock has been below $5 since Nov. 20. Nasdaq requires minimum bid price of $5 for initial inclusion.
Orbital Sciences is looking for ways to dump majority stake in MacDonald Detwiler & Assoc. (MDA). Orbital acquired MDA in 1995 for $67 million, but sold 33% to Capital Partners for $75 million in Dec. 1999. Following IPO on Toronto exchange July 12, Orbital Sciences held 18.5 million of 30 million shares.
FCC denied Global Naps petition to review its decision not to preempt Mass. Dept. of Telecom & Energy (DTE) authority after latter dismissed company’s complaint on interconnection agreements with Bell Atlantic in N.J. and Va. FCC in Feb. 21 order said Common Carrier Bureau had acted lawfully. FCC said Global Naps hadn’t provided basis for finding that Mass. DTE had “failed to act” on Global Naps’ complaint.
Four large TV group owners are devising plan to assure FCC exactly when they will give up analog Ch. 60-69 in planned switch to digital transmissions, Pax TV CEO Lowell Paxson said. After speaking at Federal Communications Bar Assn. lunch Wed. in Washington, he parried all reporters’ questions about what plan would entail, saying: “I'll get this plan to you when we finish it” in 2-4 weeks. In answer to another question, he said “it'll all come out in the plan.” He identified other licensees involved as Univision, Shop at Home and Pappas Telecasting -- which, Paxson said, represented more than 40% of 136 stations currently assigned to analog Ch. 60-69 which are to be auctioned to nonbroadcast users. Saying FCC Chmn. Powell had referred to upcoming switch to DTV as “a train wreck,” Paxson said to Powell (who wasn’t in audience): “You're the engineer now. Get us back on track.” Paxson said FCC’s recent rulemaking on DTV issues (CD Jan 22 p1) indicated agency was asking for direction from Congress. He urged Commission to hold hearings on transition to digital rather than solicit more comments. He said Pax TV Network was in black after 27 months of operation -- primarily due to help of NBC, although he didn’t mention that network -- while he said WB and UPN continued to lose money after several years of operation. Meanwhile, Moody’s (citing help from NBC) issued “outlook stable” notice on Paxson’s $122 million credit facility and $230 million in 11.625% notes, both due next year.
U.S. commercial space launch industry wants more time to comment on licensing and safety rules proposed by FAA Office of Commercial Space Transportation. Proposed rules were published in Jan., with end of Feb. deadline for comments. FAA spokesman said agency was considering request.
Ark. House unanimously passed Internet-related sales tax bill. HB-1440 would require that out-of-state vendors with “significant connections” to state, such as affiliation with traditional retailer in Ark., collect state sales tax on sales to Ark. customers made via Internet or other online network. Bill now goes to Senate Revenue & Tax Committee. Meanwhile, Ark. Senate Technology & Legislative Affairs Committee defeated House- passed bill (HB-1003) that would have required public schools and libraries to install Internet filtering programs on their Web- connected computers to block access by minors to pornographic Web sites or take their Internet access service only from providers with filtering capability. Sponsor, state Rep. Russ Bennett (R- Lewisville), vowed to amend bill and try again. Ark. House Transportation Committee was scheduled to open hearings today (Feb. 22) on bill (HB-1229) that would ban use of handheld mobile telephones while driving, except for 911 emergency calls or calls by emergency service personnel.
Fiber performed better than satellite links in delivering real-time HDTV broadcasts across Pacific, according to tests done by fiber owner Asia Global Crossing. It said it transmitted uncompressed HDTV at 622 Mbps between Japan and U.S. using STM-4C fiber cable and would begin commercial service March 1.
Scientific-Atlanta introduced its new advanced digital cable set-top box, designed to deliver video, data and voice service. S-A said new Explorer 4000DVB box would start shipping in fall. Company said it planned to sell box in Europe and other markets that use PAL video standard.
U.S. Supreme Court rejected attempt by Time Warner Entertainment (TWE) to challenge constitutionality of law limiting number of cable subscribers that single company could control. Acting without comment Tues., court declined to hear TWE’s appeal of U.S. Appeals Court, D.C., decision last May that unanimously upheld constitutionality of 1992 Cable Act provisions restricting MSOs’ ownership of cable systems and programming (CD May 22 p4). TWE, joint venture of AOL Time Warner and AT&T, argued that law’s subscriber limits and channel occupancy rules violated First Amendment protections of free speech for cable operators. But appeals court said both provisions were content-neutral and advanced important govt. interests. In separate, case now before same appeals court, AOL Time Warner and AT&T are challenging actual 30% subscriber and 40% channel occupancy limits set by FCC under Cable Act. Ruling in that case, in which oral arguments were heard in Oct., is expected soon. Representatives of AOL Time Warner, AT&T and NCTA declined comment. Gene Kimmelman, co-dir. of Consumers Union’s Washington office, called Supreme Court ruling “an important win for consumers” and said it “reaffirms that Congress can challenge the monopolistic practices of cable operators.”
AT&T, Concert and WorldCom jointly petitioned FCC, requesting that agency enforce benchmark settlement rate of 15 cents per min for service on U.S.-Qatar route. Rate is required under Commission’s 1997 benchmarks order, companies said. Order requires carriers in countries that are classified as upper income nations, including Qatar, have settlement rate that doesn’t exceed 15 cents per min to conduct revenue settlements on service provided with U.S., companies said. AT&T, Concert and WorldCom told FCC they hadn’t been able to reach agreement with Qatar Telecom that complied with benchmark rate. AT&T and WorldCom asked that Commission enforce its benchmarks order by requiring that no U.S. carrier pay settlement rate that exceeded 15 cents for service with Qatar. Comments are due March 22, replies April 6.