FCC needs to harmonize intercarrier compensation and develop coherent national approach to wireless spectrum, FCC Chmn. Powell said in CNBC interview Fri. He compared local telcos with “mother cow” that all other telecom firms connect to for last mile, but said those connecting all had different compensation arrangements with local telcos. When asked whether harmonization would happen on case by case or in overall proceeding, Powell said it was “regrettable” that intercarrier compensation had been on case-by- case basis, which he said was too slow for “Internet time.” FCC should “try to pull up to 30,000 feet and see how to approach it across the board.” Powell said there’s “critical need” for spectrum for things such as 3G, but “no single point of harmonization” for spectrum. FCC must try to recoup as much spectrum as it can, he said, but incumbents also have rights. It will be “big challenge,” Powell said. He said LEC entry into long distance wouldn’t necessarily be easier, but Commission would be “faithful to congressional intent” that access should be easier. That doesn’t mean all entry will be approved, Powell said, but FCC shouldn’t block entry as “defensive measure.” He clarified earlier comments about lack of digital divide, saying it may be natural for different consumers to have different products, as they do different autos. He said early adopters are important to help drive down cost and “shake out the bugs,” and if govt. requires all segments of society to get new products at same time they “may not get built at all.”
Clarification: Plaintiffs in lawsuit against Cox made statement that: “Although Cox acknowledges that cable modem service is a telecom service in certain areas, it refuses to comply with laws protecting customers” (CD Feb 9 p7).
Deutsche Telekom (DT) disputed reports that timeline of proposed mergers with Powertel and VoiceStream had slipped. Spokesman in Germany said company didn’t set midyear closing target until it filed proxy statement with SEC Fri. Filing said wireless merger wasn’t expected to close until “at least” May 31. Some analysts had expected wireless transaction to close in April or even earlier after remaining regulatory hurdles were cleared, including FCC approval. Germany’s DT made offer somewhat sweeter with new provision that would increase shares VoiceStream stockholders would own by 0.75%, raising number of shares that would be exchanged for DT stock.
Financials: Hearst-Argyle TV had $14.6 million profit in 4th quarter ended Dec. 31, down from $15.8 million year ago. Revenue grew to $202.4 million from $195.2 million… Hispanic Bcstg. profit inched up to $11.1 million in quarter from $11 million year earlier as revenue rose to $61.4 million from $56 million.
Rural telephony is ripe for investment as regulatory reform, consolidation and divestiture of rural exchanges by Bell companies change way telephone service is offered in small communities, panelists told representatives of investment companies attending conference in N.Y.C. sponsored by Legg Mason. “This a good time for you to come in,” NARUC Pres. Bob Rowe said: “There is tremendous growth. Rural America awaits your participation.” Panelists at all-day conference represented telcos, regulators, financial investors.
FCC Comr. Ness has offered to help ease transition of new commissioner after replacement is named, she confirmed, but hasn’t set date for departure. Ness is continuing at Commission on recess appointment that ends when replacement is finalized. Ness told us she hasn’t decided exactly when she would leave, but is willing to help because “I care very much about this agency.” Despite pressure from some committee Democrats, Senate Commerce Committee Chmn. McCain (R-Ariz.) has blocked Ness’s reappointment on grounds that he believes commissioners should have only one term.
FCC denied petition by Midway Bcstg. seeking reconsideration of its June 2000 order admonishing Black Media Works, licensee of noncommercial station WJFP(FM) Ft. Pierce, Fla., for broadcasting ads in violation of Commission rules. Midway said admonishment was inadequate sanction. FCC said Midway didn’t provide adequate reasons why imposition of more severe form of initial punishment would be required to ensure WJFP’s prospective rule compliance. While parties could draw Commission’s scrutiny and investigative efforts to licensee’s conduct, it said, agency itself had broad discretion in determining ultimate choice of remedies and sanctions that were appropriate.
Suit filed against Pacific Bell on behalf of certain Cal. DSL customers alleges company reneged on promotional promises of free equipment and services in return for long-term DSL service commitment. Suit in Cal. Superior Court, San Francisco, was filed Thurs. on behalf of DSL customers who last fall accepted Pac Bell offer of free Compaq computer and free DSL for balance of 2000 if customer contracted for DSL service for all of 2001 and 2002 at $60 per month. Suit charges that Pac Bell provided mix of Compaq computer and non-Compaq monitor, sought extra fee for all-Compaq system, failed to provide DSL service before end of 2000, meaning customer got no free months. Plaintiffs’ attorney Chandler Visher said Pac Bell offered settlement of Compaq monitor and one month free DSL service to customers who complained. But he said some customers were entitled to as much as 4 months’ free DSL service under offer and Pac Bell should settle with all affected customers, not just those who squawked. Number of potentially affected customers wasn’t available.
MPAA Pres. Jack Valenti will make opening keynote at NAB convention April 23 in Las Vegas, group said. Topic is expected to be intellectual property.
Sen. Lieberman (D-Conn.) called on Viacom, parent of MTV Networks, to either cancel or change MTV’s stunt program Jackass to prevent more children from being hurt in copycat incidents. In letter to Viacom Pres. Mel Karmazin, Lieberman urged company to take greater responsibility for its programming and do more to help parents protect their children. Lieberman cited case of Jason Lind, 13-year-old boy in Torrington, Conn., who suffered 2nd and 3rd degree burns after imitating gasoline-burning stunt shown on program. While acknowledging that boy “bears some responsibility for his actions,” Lieberman said network and show producers bore some responsibility too for depicting dangerous stunts as humorous, not informing viewers that stunt performers wore protective clothing and airing and promoting show during children’s programming hours. Ideally, he said, Viacom should “either cancel this exploitative and degrading show or eliminate the stunts that could be dangerous if imitated by children.” At minimum, he strongly urged company to “air the show at a later time less accessible to children and to include more explicit and more straightforward warnings about the potential consequences of each stunt.”