Applauding NPR’s decision to lease space on exterior of its Washington hq to outdoor ad agency, House Financial Services Committee Chmn. Oxley (R-O.) called action “just the kind of innovative thinking that has kept NPR on the cutting edge of noncommercial broadcasting.” Responding to Washington Post article on billboard ads, NPR clarified that leased space would not be for outdoor ad or billboard. “It’s a noncommercial underwriting sign -- identified by D.C. law as wall art or mural. The message displayed on this sign will be equivalent, in intent and spirit, to the underwriting messages that NPR inserts in its programs.” In letter to NPR Pres. Kevin Klose, Oxley termed “hogwash” interpretations of “noncommercial” as restricting NPR from putting up billboards because it was prohibited by law from airing ads. Referring to reported remarks by NPR spokeswoman that billboard deal would allow NPR to “enhance our services while reducing reliance on member station contributions,” he said that formulation could be altered to read, “while reducing our reliance on involuntary contributions from taxpayers who don’t care for our programming in the first place.” NPR spokeswoman said memo that Washington Post report had relied on wasn’t NPR memo but “information put up by a staff member on the intranet.”
Europe Star and France Telecom said they finalized agreement on joint venture to provide fixed satellite service (FSS) across Europe, Africa, Middle East. New company Stellat committed to build Stellat 5 satellite to be launched by mid-2002. Under agreement signed in Paris last month, Stellat is owned 70% by France Telecom and 30% by EuropeStar. Satellite also will become part of Loral Global Alliance. Alcatel has contract to build satellite, which will have 35 Ku-band and 10 C-band transponders. It will provide Ku-band Superbeam for direct-to-home video and high-speed Internet service across Europe and Northern Africa while Ku-band Widebeam will extend video and Internet distribution to Eastern Europe and Middle East, supplemented by steerable beam. C-band hemibeam will cover Africa and Europe. Both C- and Ku-band will include connections across Atlantic and will be capable of linking eastern seaboards of U.S. and South America with Europe, Middle East and Africa. Stellat 5 will allow use of 2-way VSATs in Europe.
JDS Uniphase warned of lower-than-expected earnings day after merger with SDL was approved by shareholders Feb. 12. Forecast was reduced because of lull in capital expenditures by telecom companies and expectation of increased expenses for rollout of new products, company said in conference call. It forecast 3rd- quarter sales at $1 billion (17 cents per share), down from analysts’ expectations of 21 cents. Forecast includes SDL results but not transactions between 2 companies and sale of Zurich plant to Nortel Networks. Company’s stock price rebounded from Tues. low of $38.50 to $41.25 at Nasdaq’s Wed. close, up 7.14%. On Toronto Exchange, stock price was $65.50 (Canadian) at our deadline, up 6.14% from previous close.
Cablevision Systems said it added 99,000 cable modem subscribers in 4th quarter, about 7,600 per week, to close 2000 with 238,500 and penetration rate of 11.9%. As it continues to upgrade its plant to 750 MHz capacity, company said, it aims to double its high-speed data customer total to 475,000 by end of 2001. But Cablevision, which originally planned to introduce digital cable service this winter, said it wouldn’t begin deploying digital set-top boxes until next fall because it wanted to bolster its customer support operation first. Plans now call for installing 100,000 Sony digital boxes in subscriber homes by year’s end. In conference call with analysts Wed., Cablevision executives denied that there were any problems with new Sony boxes or their cable plant. “We are technologically ready” for digital, Cablevision CEO James Dolan said. Executives said they planned to roll out digital broadly in 2002. They also expressed strong interest in pursuing expanded relationship with MGM, which just bought 20% stake in Rainbow Media, as well as building PCS business in N.Y.C. area and possibly selling various PCS licenses elsewhere.
Nextel advanced $250 million to Arch Wireless as part of previous agreement for latter to sell 900 MHz specialized mobile radio licenses. Nextel is acquiring licenses from Arch subsidiary for aggregate price of $175 million. Nextel plans to invest $75 million in new Arch equity issue. Advance of $250 million is in form of $175 million loan secured by SMR licenses and $75 million unsecured loan. Loans are for new separate Arch subsidiary that will hold licenses until regulatory approvals are received to transfer them to Nextel.
FCC asked for nominations by March 16 for Universal Service Administrative Company (USAC) board member who would represent low-income consumers. USAC administers universal service programs -- Sheryl Todd, 202-418-7400.
Satellite companies’ export control woes are on mind of Rep. Lofgren (D-Cal.), she told gathering of women in high-tech industries Wed. “I will work on export controls,” she said. “They are killing our commercial satellite industry.”
AT&T and Excite@Home said they signed multiyear deal to offer high-speed, dedicated Internet access services to broadband content providers. Under agreement, AT&T and Excite@Home, now controlled by AT&T, jointly will make their separate IP backbones available to content providers, starting in 2nd quarter. Companies said partnership would offer content providers “optimized delivery” to Excite@Home’s nearly 3 million broadband subscribers. Companies also said AT&T would act as reseller of access to Excite@Home’s backbone and Excite@Home would refer leads for large Web-hosting opportunities to AT&T.
Telecom Act requires regulators to follow 2 “inherently contradictory paths” and that may be responsible for failures in reaching Act’s goals, National Regulatory Research Institute (NRRI) report said. Report, sponsored by NARUC and several state commissions, said Act’s goals of robust competition and universal service created conflicts for regulators: “Even after 5 years of effort, regulators do not appear to have crafted an approach capable of accomplishing both objectives.” NRRI said problem was clear: “If universal service is pursued vigorously, the achievement of competitive goals may suffer, and, conversely, competition may be achieved at the expense of universal service goals.” Regulators have to maintain balance between 2, possibly taking “2-phased regulatory approach” that concentrates first on encouraging competition and then turns to expanding universal service, NRRI said. Report also recommended that regulators treat services defined as universal service and those that aren’t as “two separate regulatory sectors.” Those defined as universal service could be regulated under “social equity approach that stresses ubiquity of service, affordable pricing and subsidy payments.” Those outside definition could be regulated under “market equity approach that stresses free market entry and exit, efficient pricing and innovation,” report said. NRRI said report written by NRRI associate Phyllis Bernt didn’t necessarily reflect views of NRRI and NARUC -- 614-292-9404.
BellSouth asked FCC to reconsider portion of its building access order that lets building owners require relocation of network demarcation points without getting approval of subscribers. BellSouth said Commission, in requiring telcos to comply with building owner requests for relocation, “appears not to have considered whether it had the authority to allow nonregulated third party nonsubscribers to initiate service affecting network reconfiguration at the expense of [telecom] providers… and their actual service subscribers.” In Feb. 12 petition, BellSouth said carriers shouldn’t be required to comply with request by building owners for relocation of demarcation points “unless the request is accompanied by the consent of all service subscribers” in building. (WT Doc. 99-217, CC Docs. 96- 98,88-57)