Charter Communications had net loss of $241.1 million in 4th quarter despite nearly 16% increase in revenue to $893.9 million as it continued to aggressively upgrade its cable systems. But Charter said its operating cash flow jumped almost 29% on pro forma basis to $433.2 million, thanks particularly to strong increases in digital video and high-speed data customers. MSO said it ended 2000 with 1.07 million digital video subscribers, up 915,000 in year. Company added 67,800 cable modem customers in 4th quarter to close year with 252,400. Charter CEO Jerry Kent projected MSO would sign up another one million digital video and 250,000 data subscribers this year. With video-on-demand (VoD) service now available in 2 markets and expected in 10 more this year, Kent said VoD service would be offered to 2.2 million cable homes by year’s end. He also predicted nearly 93% of Charter subscribers would be reached by cable plant upgraded to at least 550 MHz capacity by end of 2002, up from 70% at close of last year. Finally, MSO plans to start its 2nd trial of IP telephony service over cable wires this summer in St. Louis market, after starting earlier trial in Wis.
Revenue for Pegasus nearly doubled in 4th quarter 2000 from $98.1 million in 4th quarter 1999 to $201.5 million, but net loss deepened $23.5 million to $73.9 million. DBS net revenue for period accounted for $192.2 million of total. Average monthly revenue per subscriber increased $2.73 to $48.10 in quarter. Company said increase in subscriber costs was due to commissions under seamless marketing agreement with DirecTV. Company also restated financial results for 2nd and 3rd quarters 2000. Revision is result of adjustment in allocation of purchase price and application of income taxes at time of acquisition of Golden Sky Holdings.
Rep. Gillmor (R-O.) reintroduced bill to study FCC reform (HR-646). It’s same as one (HR-5570) he floated at end of last session (CD Nov 2 p5) and has Reps. Deal (R-Ga.), Ehrlich (R-Md.), Largent (R-Okla.), Pickering (R-Miss.), Stearns (R-Fla.) and Wilson (R-N.M.) as initial co-sponsors. Gillmor was given task of drafting bill by Republicans on House Commerce Committee, and Democrats have complained that they haven’t been privy to drafting (CD Nov 3 p7). Bill would create 7-member commission to study FCC, returning report within 6 months.
“No question about it,” attorney David Honig responded when asked whether civil rights groups would seek en banc rehearing by 3-judge panel of U.S. Appeals Court, D.C., order throwing out FCC’s new EEO rules as unconstitutional (CD Jan 17 p1). Honig is attorney for Minority Media & Telecom Council and 29 other groups “representing virtually the entire civil rights movement,” he said. At National Religious Bcstrs. convention in Dallas earlier this week, FCC Mass Media Bureau Chief Roy Stewart said Commission still was considering whether to ask court for rehearing. Broadcast attorney predicted agency would seek en banc court reconsideration but said odds were “100-to-1” against court granting petition.
Cleaning up some unfinished business from its AT&T-MediaOne merger approval last year, FCC rejected application for review filed by Media Access Project, Consumers Union and Consumer Federation of America. In 4-page order issued Thurs., Commission denied bid by consumer groups to gain access to handwritten staff notes, e-mail messages, staff summaries of ex parte meetings, memos and other documents in agency’s merger consideration. Order said staff members had resolved some of consumer advocates’ objections by making some of documents available. It also found further discretionary disclosure of records “not appropriate here” because they “would foreseeably harm the institutional interest underlying the deliberative process privilege” and “would actually inhibit candor in the decision-making process.”
Eschelon Telecom filed complaint against AT&T at FCC for not paying interstate access charges. Eschelon said it also has taken action against AT&T in Hennepin County Dist. Court, Minn., for not paying intrastate access charges. Eschelon said AT&T owes it $131,380 in intrastate charges in Minn. and $248,900 in interstate charges. AT&T and other IXCs have been at odds with some CLECs over size of access charges they levy, issue that FCC is looking into.
Lockheed Martin continued financial restructuring by announcing plans to slice additional $2.8 billion from aerospace and defense segment by end of 2003, spokesman said. Company suffered $519 million net loss in 2000 with long-term debt of about $10 billion. Lockheed officials also said they were looking for ways to increase reductions and financial exposure in struggling commercial space business which hasn’t met expectations. CEO Robert Stevens said “growth opportunities” for company “are not going to be in space” despite acquisitions of Comsat and Martin-Marietta. Company has reduced costs in space operations by consolidating manufacturing sites in Denver and selling off real estate. Nevertheless, satellite market remains “major concern,” attorney close to company told us. In last year, Lockheed Martin has cut $1.2 billion in costs by streamlining operations and reducing debt, which led to decrease in interest payments, spokesman said. Lockheed Chmn. Vance Coffman said company would be examining “every process in the same way to find the minimum cost solution.”
Verizon proposed new price regulation plan for N.J. starting in Jan. 2002 after current plan expires. New plan would keep rates for basic residential and single-line business service unchanged from present levels, but would deregulate rates for multiline business services and allow Verizon to introduce new services under same minimal rules applied to CLECs. In return, Verizon told N.J. Board of Public Utilities that it would donate additional $20 million for its program to deliver advanced high- speed digital services to N.J. K-12 schools and public libraries. Company also pledged to allow low-income customers to self-certify their Lifeline eligibility and to expand Lifeline education and outreach programs. Verizon’s offer would continue its $8.19 monthly rate for basic local residential service and would continue basic exchange as stand-alone service, unlike unsuccessful previous proposal that would have doubled basic rates by redefining basic service to include several optional calling features. In new proposal, Verizon said it would donate additional $14 million for high-speed data networking equipment at schools ad libraries, and $6 million additional to expand interactive video gateway service for distance learning and videoconferencing. Verizon also said it would extend current rate discounts to schools and libraries through 2004, and extend through 2007 the terms of new discount school/library contracts signed between now and 2004.
Robert Allbritton, son of founder Joseph Allbritton, was promoted to chmn.-CEO of Allbritton Communications Thurs., replacing Lawrence Herbert, who remains vice chmn. and a dir. Robert Allbritton is 32, his father 77. Frederick Ryan succeeds Robert Allbritton as pres.-COO of Allbritton Communications. Promoted to senior vps were Jerald Fritz, legal and strategic affairs, and Chief Financial Officer Stephen Gibson. Joseph Allbritton continues on board, is named senior chmn.
Communications Daily won’t publish Mon., Feb. 19, because of President’s Day holiday. Next issue will be Tues., Feb. 20.