Cox Radio said it expected to receive $248 million from sale of 6.625% senior notes due in 2006. Company said proceeds of sale, through Salomon Smith Barney and Merrill Lynch, would be used to repay debt and for general corporate purposes.
Mike Copps took step toward becoming next Democrat on FCC, we're told, when Senate Minority Leader Daschle (D-S.D.) sent letter to White House endorsing former Commerce Dept. staffer for post. Daschle’s office hadn’t returned call by our deadline. Daschle once had been seen endorsing former NTIA Dir. Greg Rohde, but Rohde always had been considered long shot to fill seat now held by Comr. Ness until successor is confirmed. Copps has backing of Senate Commerce Committee ranking Democrat Hollings (D- S.C.) and is widely considered front-runner for next Democratic seat. We're told Andrew Levin, staffer for House Commerce Committee ranking Democrat Dingell (Mich.), probably will have to wait for next Democratic vacancy -- which could be soon, if Comr. Tristani leaves by end of year (CD Feb 16 p4). Although some questioned Copps’s familiarity with telecom issues after years of working on international trade at Commerce, Hollings spokesman assured us that Copp’s portfolio included emphasis on telecom trade issues.
Northpoint and DBS companies were expected to miss Feb. 19 deadline imposed by Congress to conduct tests to determine whether terrestrial service proposed by startup Northpoint could share spectrum in 12.2-12.7 GHz band (CD Jan 31 p3) without causing interference. Meanwhile, FCC issued correction in order setting up testing procedures by companies. Overall testing of equipment and technology has been major sticking point as Commission decides on issuing Northpoint license, both companies agree. “This is the final showdown for all terrestrial systems,” Northpoint CEO Sophia Collier told us: “This will show who has technology and who doesn’t.” Pegasus Vp John Hane said Northpoint legal maneuvering at FCC in effort to get license had been “unprecedented.” He agreed testing wouldn’t be completed in time. There was no word on when results might be finished or made available by Mitre, company hired by FCC to conduct testing. Mitre Engineer James Marshall didn’t return phone calls and company spokeswoman wasn’t up to date on testing procedures.
Md. House Commerce Committee defeated bill (HB-89) that would have banned use of handheld mobile telephones by drivers of moving vehicles. Panel voted bill down 14-7 after opponents said there wasn’t sufficient data proving car phone use contributed to auto accidents, and that bill was unnecessary because enforcement of current laws against erratic or reckless driving could deal with irresponsible car phone users. State Rep. John Arnick (D- Baltimore County) , bill sponsor, had hoped for passage because of deaths last fall of couple parked in disabled vehicle on Capital Beltway who died after being struck by Naval Academy midshipman who may have been distracted while dialing his mobile phone. Midshipman was convicted of negligent driving but judge who tried case indicated he could have faced more serious charge of vehicular manslaughter if car phone use while driving had been illegal.
FCC asked for comments by March 20 on request by City Signal Communications for preemption of regulations by city of Eastlake, O., that City Signal called discriminatory. Company complained that city told it right-of-way authorization wouldn’t be granted unless City Signal paid franchise fee, although other telecom providers don’t have to pay fee. Replies are due April 4.
Sources said 4 FCC commissioners are considering decision that would deny cable must-carry status to electronic program guide (EPG) transmitted over vertical blanking interval (VBI) of local broadcast stations. Prospective ruling in Gemstar case, which pits Gemstar-TV Guide International, broadcasters and CE manufacturers against Time Warner Cable and other cable operators, would follow recent Cable Bureau recommendation that broadcasters’ must-carry rights shouldn’t extend to 3rd party EPGs. Instead of gaining mandatory carriage on cable systems, Gemstar would have to negotiate its way onto systems, just like cable networks and other nonbroadcast services.
Intelsat used satellite to restore Internet service Thurs. for Chinese customers who lost connection after major cable between Shanghai and U.S. West Coast failed Tues. Full duplex Ku- band OC-3 link from 174 degrees E operates from Shanghai and Verestar satellite network access point in Brewster, Wash. Network carries equivalent of 400 million Web pages and 2 billion e-mail messages per day.
WorldGate Communications had wider net loss of $14.9 million in 4th quarter despite nearly tripling revenue to $7.5 million. WorldGate, which said net loss excluding one-time expenses actually dropped slightly to $10.7 million from year-ago period, blamed larger overall loss on $4.2 million in acquisition-related charges. Company said it signed up 36,000 interactive TV subscribers in 4th quarter to close year with 104,000. It said it expected to quadruple customer base to 400,000-500,000 by end of 2001 and double annual revenues to $38 million.
FCC proposal to require standardized reporting by TV stations of their public service activities doesn’t violate First Amendment, public interest groups said in reply to earlier broadcaster comments (CD Dec 20 p2). Broadcasters had said reporting requirements would impose de facto quotas for public service programming, violating broadcasters’ rights. However, Morality in Media said nothing in proposed rules constituted prior restraint and broadcasters remained “free to air what they please.” More comments were expected too late for our deadline.
NAB’s financial picture continued to shine for fiscal year ended March 31, 2000, despite loss of NBC and Fox TV Networks and their owned stations as members. According to tax return filed last week, Assn.’s revenue for year totaled $55.07 million, with expenses of $40.7 million -- providing surplus of $14.3 million. Largest source of income (and profit) by far was April 2000 convention in Las Vegas, which produced revenue of $38.8 million, with expenses totaling only $14.4 million.