Original C-block bidder Airadigm is awaiting answer to petition for reinstatement of its PCS licenses, which FCC cancelled after carrier missed payment after entering bankruptcy in July 1999. Petition still is pending before agency nearly one month from oral argument before U.S. Appeals Court, D.C., March 15 in litigation involving NextWave, bankrupt C-block bidder that also had its licenses cancelled for nonpayment. Airadigm has pointed out that only similarity between it and NextWave is that both are C-block bidders that entered Chapter 11 protection and missed installment payment for licenses. Because of disparities such as fact that Airadigm is offering service and NextWave isn’t, question is whether 2 carriers potentially could be treated differently by Commission. Proceeding raises complex web of legal issues for FCC, making outcome uncertain, industry observers said. At press time, item on Airadigm petition wasn’t yet circulating on 8th floor. Meanwhile, group of large carriers asked Commission to put off Airadigm decision longer, citing how circumstances had changed since NextWave litigation began.
VoiceStream net loss plunged to $807 million for quarter ended Dec. 31 from $151.7 million loss year ago. For year, loss was $2.1 billion. VoiceStream, which is awaiting final regulatory approvals for proposed merger with Deutsche Telekom, had revenue of $649.9 million in quarter, up from $163.8 million year earlier and $1.9 billion in year. Carrier added 602,000 subscribers in quarter. Separately, VoiceStream outlined terms of agreement with AOL to offer high-speed wireless Internet and text messaging services, terms not disclosed. AOL subscribers, AOL instant messenger users and VoiceStream customers will have access to instant messaging services. AOL instant messenger service will be available across wireless Internet devices and through 2-way short messaging services. VoiceStream said it was first GSM wireless operator in N. America to carry AOL’s instant messenger offering.
GM is denying industry reports that its board gave preliminary approval to bid by News Corp. Chmn. Rupert Murdoch to take control of DirecTV (CD Feb 8 p9). GM spokeswoman said “there’s nothing new to report.” She said board last week held regularly scheduled meeting and was updated on talks with “parties interested” in buying DirecTV, but took no action.
John Taft, ex-Condor Systems, named CFO-secy., iCTV… Gary Henry promoted to exec. vp-COO, Metro One Telecommunications… Ricardo Cidale advanced to vp-media systems sales -- Americas, RealNetworks… Catherine Hughes, Washington-based Radio One, will receive Distinguished Service Award from NAB.
USTA opposed challenges filed by AT&T and WorldCom to FCC’s decision to give BellSouth pricing flexibility. In Feb. 13 filing with FCC, USTA said U.S. Appeals Court, D.C., recently “put a stop to [AT&T’s and WorldCom’s] relentless self-serving attacks” on Commission’s pricing flexibility rules by upholding agency’s rules against challenge by WorldCom (CD Feb 5 p2). FCC “should be applauded for implementing a policy that relies on market forces rather than regulation,” USTA said. Assn. disagreed in particular with WorldCom claim that it was incorrect of BellSouth to include packet-based data services in its petition because such services weren’t subject to pricing flexibility. USTA said rules allowed pricing flexibility for new packet-based services, not just packet-switched access services that already existed at time price cap rules were adopted. However, Assn. of Communications Enterprises (ASCENT) said BellSouth didn’t satisfy FCC’s requirements for pricing flexibility, yet agency gave company “broad-reaching” relief. ASCENT complained that “despite the lack of specificity in BellSouth’s revenue data,” FCC staff “accepted BellSouth’s summary revenue figures and bare assertions as conclusory evidence that the incumbent LEC faces sufficient competition.”
AT&T plans to sell up to $3 billion of AT&T Wireless stock after mobile unit splits off from parent company later this year. Action depends on favorable tax ruling from IRS and is intended to further reduce debt of parent company, AT&T said. AT&T has planned to distribute its interest in AT&T Wireless to AT&T common shareholders following spinoff. Exchange offer of AT&T Wireless tracking stock for AT&T common stock has been delayed by about one month until early April. AT&T Wireless shares dropped 5.7% Wed. to $21.69.
CableLabs, seeking to influence regulatory debate over anticopying encryption technology for digital cable set-top boxes, urged FCC Chmn. Powell to stay course on issue and continue allowing cable industry to impose copy protection requirements on set-top manufacturers. In 3-page letter to Powell last week, CableLabs Pres. Richard Green argued that, without such copy protection capability in cable boxes, “content providers would likely withhold high-quality digital content from cable operators.” He also contended that content providers might favor such cable rivals as DBS providers, “who are not encumbered by the FCC’s separate security requirement and therefore can impose copy protection and other requirements on their receiver manufacturers without being subject to FCC review.” To buttress latter point, Green cited recent story in Communications Daily that reported on agreement between DirecTV and satellite set-top makers to downgrade HDTV signals to ease content owners’ fears of unauthorized program copying. He said FCC “made the correct call” in its Sept. 18 declaratory ruling that cable copy protection requirements were consistent with Commission’s navigation device rules. Such recent developments as DirecTV deal, he said, “demonstrate the wisdom of the Commission’s decision to abstain from involvement in copy protection matters which could have significant ramifications in the competitive marketplace.” Green also stressed that CableLabs’ PHILA (POD-Host Interface License Agreement) requires only that digital cable set-tops have capability to protect digital content -- it doesn’t force cable operators actually to use copy control mechanisms. “The cable industry strongly supports customers’ desires to record programs for various purposes including time-shifting,” he wrote. “However, in the digital world, copies are technically perfect and can be transmitted instantly around the world without restriction. Therefore, a copyright holder must have the technical capability available to ensure that digital copies are made and used responsibly.”
Pa. PUC ordered competitive local provider Eagle Communications to surrender 20,000 unused phone numbers for reassignment under agency’s number conservation program. PUC ordered Eagle to return 271 and 405 exchange prefixes in 267 area code (Doylestown, outside Philadelphia). PUC rules require local carriers to begin using number blocks within 6 months of assignment or return them for reassignment to other carriers.
Excite@Home and Tiscali announced that Tiscali would acquire 70% of Excite Italia, one of Italy’s bigger Internet portals, for 27 million Euros. Agreement calls for Tiscali to buy 50% stake held by Telecom Italia and invest additional sum in Excite Italia. Excite@Home will own remaining 30%. Tiscali and Excite@Home said Excite Italia would continue operating independently.
Integral Systems awarded subcontract Mon. to Lockheed Martin Space Systems Company’s Space Operations Div. to complete last of 3-phase upgrade of Air Force simulators. Units are for Defense Meteorological Satellite Program satellites in Cal. and Md.