Gartner Group research unit Dataquest projects that by 2005 “substantial majority” of all telecom revenue will be generated in fully deregulated markets around world. In report, Gartner Dataquest said most telecom services revenue now comes from national markets that “are less than fully opened.” Less than 3% of public switched telephone network services (PSTN) revenue comes from markets with high degree of competition. Gartner identifies fully open markets as allowing easy entrance by outside players and giving advantages to incumbents through their possession of infrastructure, not special treatment. By 2005, report forecasts that 60% of PSTN revenue will be generated in fully opened markets.
ORLANDO -- Panel of Washington insiders told CEOs of competitive telecom companies here Mon. that they must become more involved in lobbying against Bell-sponsored data LATA relief because there was better chance than ever that such legislation could pass. Speaking at CompTel’s annual convention, panelists came close to pleading with competitive entrepreneurs, who traditionally are less likely than Bell CEOs to get involved in policy issues. They warned that their businesses could be at stake; that House, at least, was likely to pass data deregulation legislation this session and that Bells were very good lobbyists. “You need to make clear why this legislation could be a danger to this industry,” said Gary Slaiman, Washington attorney and former aide to Senate Judiciary Committee. Earl Comstock, Washington lawyer and former legislative counsel to Sen. Stevens (R-Alaska), told group, “Bell CEOs are engaged, they come to Washington. Your industry CEOs don’t often come to Washington and you have a complicated message.”
Full FCC refused to review Cable Bureau decision denying program access complaint by EchoStar against Speedvision and Outdoor Life Network in order issued Tues. Commission didn’t overturn Cable Bureau ruling that case was not “refusal to deal” or “refusal to sell,” despite EchoStar argument that Bureau made mistake when it said complaint was inextricably intertwined with breach of contract litigation following networks’ cutting off service to EchoStar in Dec. 1998. FCC said EchoStar could refile after court action.
Escalating battle over anticopying encryption technology for advanced digital cable set-top boxes, Consumer Electronics Retailers Coalition (CERC) wrote to FCC Chmn. Powell last week, urging him to break cable industry’s “five-decade monopoly on cable navigation devices.” In 6-page letter to Powell Feb. 12, CERC disputed claims made by CableLabs in its own letter to Powell week earlier and called on FCC to intervene in dispute (CD Feb 14 p7). “As in many cases of deregulation, one cannot expect that the ‘market’ will force an entrenched monopolist, with remaining official power over potential competitors, to offer fair terms of entry to those who would attempt to destroy his monopoly,” group argued. “Thus it is necessary to finish the job of deregulation before competition can be expected to bloom.” Specifically, CERC expressed concerns that CableLabs'PHILA technology license was overly broad, overreaching, discriminated against new entrants. CERC also objected that copy protection provisions of PHILA license: (1) Go beyond digital TV signals to cover analog TV. (2) Mandate that OpenCable digital boxes automatically shut off or degrade images in response to particular copy control signal even if content provider doesn’t want that. (3) Would give content providers “flat, unbridled authority to impose, unilaterally, broad impositions on competitive entrants.” Finally, CERC contended that Commission “has not approved any particular provision” of PHILA license and has not even released final version of license for public comment. Group sought meeting with Powell and his staff to press its case further.
Lockheed Martin-built Air Force Milstar II satellite will be launched Sat. from Cape Canaveral aboard Titan IV launch vehicle during 4-hour window opening 2:09 p.m. ET. Satellite, designated F-4, has medium-data-rate (MDR) communications payload supplied by Boeing Satellite Systems for jam-resistant communications to U.S. forces. F-4, 4th of 6 spacecraft built by Lockheed Martin, uses 32-channel extremely high frequency uplink (44 GHz) and superhigh frequency downlink (20 GHz) to send real-time voice, video and data to military personnel at rate of 50 times faster than common PC modems.
Iridium Satellite gave FitzGerald Communications contract to become its communications agency for company, terms not announced. FitzGerald will target aviation, maritime, oil and gas, mining, heavy construction, forestry, emergency services and leisure market industries.
AT&T told SEC in filing Tues. that company had held “exploratory discussions” with Dobson Communications on potential transactions. Last week, AT&T Wireless finalized purchase of $200 million of preferred stock in Dobson. If that series of preferred stock were exchanged into convertible preferred, AT&T Wireless said its stake in Dobson would rise to 11.6% from 4.6%. Dobson and AT&T have evaluated “strategic alternatives” concerning AT&T Wireless’s stake in Dobson, SEC filing said. Among potential options outlined were loans that would be secured with some of Class A shares of common stock that AT&T owns. Another option would be acquisition, merger or asset sale, companies said. Dobson subsidiary won 14 PCS licenses for $546 million in recently completed FCC C-block auction.
Broadband infrastructure company CityNet Telecommunications said it began Tues. first commercial deployment of fiber network through sewer system (CD Sept 11 p3) in Albuquerque, N.M. Company used high-tech robot to install fiber in sewer pipe. CityNet said it signed license and access agreements with 2 other U.S. cities - - Indianapolis and Omaha -- and was negotiating with 26 other U.S. and European cities for fiber rollout through sewer systems.
ORLANDO -- In highly animated panel discussion at CompTel annual conference Tues., representatives of CLECs, long distance companies, Bell companies and FCC debated whether CLECs had right to charge higher than average access rates and whether long distance companies could refuse to pay those rates. FCC Common Carrier Bureau Chief Dorothy Attwood said Commission had teed up issue by asking for comments but hadn’t decided whether it should step in or let industries settle it themselves. She said there seemed to be industry agreement that Commission should require long distance providers to serve CLEC customers if CLEC access charges fell below certain amount. Dispute is over what upper limit should be.
Bush Administration will take a “light-handed” approach to regulation of Internet and telecom, said Rep. Tauzin (R-La.), chmn. of House Commerce Committee, at panel discussion in Menlo Park, Cal., Tues. Narrowing digital gap is top priority for Administration, he said, and “smooth, full” deployment of broadband is critical to providing all Americans with speedy, reliable Internet access. Technet co-Chmn. Floyd Kvamme said far- reaching broadband deployment was “as fundamental as the rural electrification program.” Tauzin said consumer decisions about pricing and service should control the industry, as promised in the 1996 Telecom Act. He cited benefits of wireless competition , which resulted in lower prices and more choices for customers. Govt. response to AOL/Time Warner merger represents its new, limited approach to regulating, Tauzin said. Court battles over monopolies are preferable to govt.’s imposing conditions on such mergers in advance, he said.