FCC Comr. Furchtgott-Roth plans to work for think tank for several months after he leaves FCC, giving him time to write book and “look around the private sector” for new job, he told reporters Tues. at his monthly breakfast briefing. However, he said he probably would remain at FCC for “many months” before President Bush appointed replacement. Asked what kind of book he will write, he said it would be “telecommunications-related and based on my experience here.” He predicted that Chmn. Powell would be “outstanding chairman” who would lead “a more restrained Commission, more tied to the law.” Furchtgott-Roth said he expected Powell to concentrate on management issues, giving industry more “predictability” and speeding decisions on license applications and other petitions. However, he said he didn’t know whether Powell would go as far as setting specific time frame for license reviews. On other topics, he said he had been assured that agency would gear up soon to resume work on reciprocal compensation. “The last piece of paper” he received involving reciprocal compensation language was in early Dec., he said. On wireless issues teed up at agency, Furchtgott-Roth said he expected it would address license transfers connected to VoiceStream, Powertel and Deutsche Telekom merger “shortly.” Applications were filed in Oct. and “we're over 90 days now,” he said. “It should have been taken care of.” Asked about concerns raised by some over designated entities backed by larger carriers in recently completed C- and F-block auction, Furchtgott-Roth said Commission had “fact-specific rules” on ownership. Agency policy allows challenges to ownership provisions after long forms are filed following close of auction. Difficulty in allowing such challenges before start of auction is that pool of bidders was substantial, making certification of such ownership issues ahead of bidding time-consuming, he said.
President Bush nominated three 2nd-tier Commerce Dept. officials, although not NTIA dir.: (1) Lawyer Theodore Kassinger, who’s now at Vinson & Elkins and has been staffer on Senate Finance Committee and adviser for State Dept., as gen. counsel. (2) Kenneth Juster, ex-Arnold & Porter and ex-State Dept., as undersecy. for Export Administration. (3) Faryar Shirzad, ex- Senate Finance Committee, as asst. secy. for Import Administration. Meanwhile, it was rumored that Bush soon would appoint Jones, Day, Reavis & Pogue lawyer Charles James as head of Justice’s Antitrust Div., position he held for short time in first Bush Administration.
Moody’s downgraded KPN’s senior unsecured debt ratings to Baa2 from A3 and subordinated debt ratings to Baa3 from Baa1. Ratings agency said its action stemmed from concerns over KPN’s ability to reduce its $20.2 billion debt this year. Moody’s cited planned IPO of company’s mobile unit, for which KPN has lowered its expectations of proceeds. KPN is limited in its ability to offer higher percentage of shares to make up for expected loss in value, Moody’s said. Limitation is result of NTT DoCoMo holding 15% of company’s voting equity and BellSouth having option to convert its E-plus stake to 24-29% of voting equity in KPN Mobile. While Moody’s said IPO still was expected to raise $5 billion, with proceeds partly offset by anticipated expenditures in planned build-out of 3rd-generation wireless systems.
Motorola executives recently lobbied FCC Chmn. Powell and Comrs. Ness and Furchtgott-Roth to get rid of Commission’s Jan. 1, 2005, deadline for cable operators to stop offering integrated cable set-top boxes, according to ex parte filings. Meeting with Powell, Ness, Furchtgott-Roth and their cable advisers Jan. 29, Motorola officials argued that deadline should be eliminated so consumers could “continue to have the option of leasing lower cost equipment” from MSOs. Noting that ban was enacted when it appeared that integrated set-top boxes (STBs) couldn’t be sold at retail, they also contended that there now were “multiple business models, including Motorola’s new line of retail-only STBs with embedded security, advanced functionality and POD slots.” Motorola officials also pressed Powell, Ness and Furchtgott-Roth not to move up 2005 deadline, arguing that “would have no positive effect on retail sale of STBs and would negatively impact consumers.” Despite CE retailers’ claims of incomplete cable set- top standards and unfair competition, company officials said “Open Cable specs are sufficient to allow competitors to offer full function STBs.” They also said retailers’ complaints “are motivated by their desire for a larger, monthly revenue stream.”
For 2nd time in week, FCC Comr. Tristani criticized Enforcement Bureau for dismissing indecency complaint. Latest complaint involved language on WRLR(FM) Hueytown, Ala., which Bureau said was “certainly offensive, but not indecent.” Tristani said complaint raised “prima facie case for indecency,” as well as constituting personal attack. “It is difficult to discern what more specific allegations are necessary to state a prima facie violation under the statute,” she said. Earlier case involved KLOU(FM) St. Louis (CD Feb 9 p7).
U.S. Dist. Court, Alexandria, Va., Judge Gerald Bruce may issue ruling in DBS must-carry lawsuit (CD Sept 21 p1) within 60- 90 days. Bruce took motions from DBS, broadcasters and U.S. govt. under advisement. Satellite lawyers asked court for summary judgment in case in which DBS industry wants must-carry rules declared unconstitutional. Broadcasting and govt. representatives filed motion to dismiss suit.
SkyBridge added L-3 Communications to ranks of owners Tues. L-3 Communications joins companies such as Alcatel, Boeing and Loral Space & Communications, terms not announced. SkyBridge plans to create network of 80 low-Earth orbiting satellites in effort to provide high-speed Internet access.
Nortel won wireless contracts in China valued at $166 million in separate agreements with China Mobile Communications and China United Telecommunications. In $130 million contract with China Mobile, country’s largest wireless carrier will use Nortel equipment to expand its GSM 900/1800 MHz dual band network in Shaanxi province. Network expansion will increase subscriber capacity by 1.5 million to more than 4 million. Companies said system is to begin operating by midyear. Separately: (1) China Unicom awarded $32 million contract to Nortel to expand similar dual band GSM network in Zhejiang and Heilongjiang provinces and Ningbo. (2) Nokia said it reached agreement with Heilongjiang Mobile Communications to supply equipment for its GSM 1800 MHz network in Qiqihaer, city in northeastern China. Companies didn’t disclose terms but said equipment would include mobile switching centers, base stations, base station controllers. (3) Motorola said it signed GSM equipment agreements in China valued at $13 million. Under 2 contracts with China Mobile Communications, Motorola said it would construct its first GSM 1800 MHz network in Heilongjiang province.
FCC began process that could lead to revoking licenses of WSTX(AM/FM) Christiansted, Virgin Islands, for operating with unauthorized antennas and improper power levels. Commission ordered administrative law judge evidentiary hearing on issue, but date hasn’t been set. In unrelated action, FCC proposed to fine Citicasters $25,000 for taking control of WBTJ(FM) Hubbard, O., without prior Commission approval.
Utah Gov. Mike Leavitt signed bill (HB-184) to repeal 2000 state law that in July was to merge state’s 2 utility consumer advocacy agencies. Repealed law would have combined independent Utah Committee on Consumer Services into Utah PSC’s Consumer Protection Div. to form new Div. of Utility Consumer Advocacy. Intent of last year’s HB-320, which was passed despite strong objections by consumer interests, was to streamline state’s utility regulation processes by combining all utility consumer advocacy into single entity. But critics charged that law, if implemented this summer, would have increased chances that state’s answers to energy and telecom problems could impose unfair and excessive burdens on telephone, electric and gas ratepayers.