Larry Jacobson, ex-Fox and ex-Ticketmaster, named pres.-COO, RealNetworks… Matthew Oppenheim adds litigation dept. leadership to senior vp-business and legal affairs responsibility, RIAA, replacing George Borkowski, who had been on loan from Mitchell, Silberberg & Knupp… Changes at Burst Wireless: Sherry Browne, ex-Sprint PCS, appointed vp-chief information officer; Joseph Plomin, ex-Delco Remy International, named vp-chief sales and mktg. officer… Mark McMillan, ex-BT N. America, appointed vp- mktg., Sierra Wireless… Jeb Johnson, ex-U.S. Air Force, named partner, Paul, Weiss, Rifkind, Wharton & Garrison… Eric Cooney promoted to vp-gen. mgr., Tandberg TV Americas… Kimberly Givens advanced to dir.-sales communication, Showtime Networks… Changes at Fox: TV producer Wenda Fong named exec. dir-diversity development; Gerald Alcantar, ex-Times Mirror, named dir.- diversity recruitment.
Several telecom bills made cut at Va. legislature’s “move or die” deadline for bills to pass chamber of origin, but car phone restrictions were among those defeated for this year. House bills crossing over to Senate Wed. included HB-1902 to eliminate mandatory hearings on local exchange certification applications, HB-1767 to require that new telecom and energy facilities be installed within existing utility rights-of-way whenever feasible, HB-1914 to limit grounds on which utility pole owners could refuse to allow telecom or cable facility attachments, HB-2640 exempting telephone cooperatives from filing local exchange tariffs and allowing them to take ownership interest in other telecom companies, and HB-2427 restricting telemarketing hours and requiring telemarketers to identify themselves in person and via caller ID. Senate bills passing on to House included SB-1349 exempting wireless customers from local E911 taxes and changing assessment basis for state’s 75-cent monthly wireless E911 surcharge to per-customer basis from per-number, and Senate resolution (SJR-336) forming legislative subcommittee to study highway safety threat posed by car phone use and to recommend legislation for next year. Among telecom bill casualties were 4 in House (HB-1629, 1884, 2381 and 2809) to restrict or ban use of car phones while driving. Other defeated bills included SB-1323 to give local governments explicit zoning authority over wireless telecom towers, HB-1490 capping local 911 taxes, SB-1425/HB-1971 to require landlords be compensated when competitive telecom providers access individual tenants, HB-2196 to require state Corrections Dept. to apply all provider rebates from inmate payphone services to reducing phone charges to inmates, and SB- 1328 to make electronic eavesdropping automatic felony.
EMS Technologies Canadian unit won $23 million contract to provide 3 flight satellite repeaters and one engineering model to Khrunichev State Research & Production Center in Moscow. Repeaters, which process signals in C- and Ku-bands, will fly on Dialog satellites and provide fixed service communications in Russia, Eastern Europe, Western Asia. They're to be delivered over next 4 years.
“ALTS is going on the offensive,” Pres. John Windhausen announced at Thurs. news conference, as he and others in CLEC industry began campaign for tougher enforcement of rules on local phone competition. ALTS members said they would ask Congress to consider strict penalties for Bell companies that failed to comply with Telecom Act’s market-opening provisions, or even splitting Bells into separate wholesale and retail units.
Fourth-Quarter Financials: Young Bcstg. had $5 million profit in quarter ended Dec. 31, down from $5.2 million year ago. Revenue grew to $123.6 million from $79.5 million because of acquisitions… LIN TV said reported profit of $2.3 million, reversing $2.2 million loss year ago. Revenue rose to $86.5 million from $76.9 million, but interest expense more than doubled to $32 million… Cox Radio profit declined to $4.7 million from $8.7 million year ago as revenue increased to $102.8 million from $81.8 million.
Intelsat agreed to buy from Astrium Ku-band satellite, which China Great Wall Industry will launch in spring 2002 toward orbital location at 85 degrees E for corporate VSAT networks, video distribution to cable, Internet connections. Sinosat acquired right to use 6 transponders on satellite, which will be known as Intelsat APR-3, and two C-band transponders on Intelsat satellite at 178 degrees E scheduled to be operational by Oct. 2003.
FCC sought comment on The Weather Channel (TWC) request for clarification that it was in compliance with aural tone requirements of video description rules when it provided aural tone prior to first time that crawl or scroll containing emergency information was carried. Commission has said that when broadcast station or multichannel video programming distributor (MVPD) provides emergency information through crawl or scroll, it must be accompanied by aural tone. At issue, TWC said, are 2 of its Weather Stars systems that affect only 6.5% of its subscribers. It anticipated replacing all Stars IIIs systems, which are technically capable of producing aural tone only before they carry crawl or scroll, with more advanced products by 2003-2004, while Stars Jr., which currently can’t offer aural tone, may be upgraded to level of Stars IIIs. Saying total cost of replacing both systems would be more than $34 million, TWC said its circumstances were “unique and the interpretation it seeks will be an especially narrow one.” If FCC doesn’t grant TWC’s request, then Commission as alternative should grant “undue burden” exemption, it said.
Cox’s action in continuing to collect franchise fees on cable modem service in jurisdictions outside 9th U.S. Appeals Court, San Francisco, has been challenged in suit by 2 Va. customers in U.S. Dist. Court, Roanoke. MSO has notified communities in 9th Circuit jurisdiction that it will stop collecting franchise fees on high- speed Internet service, citing court ruling classifying cable modem service as telecom offering. Forcing only customers in states outside 9th Circuit to pay franchise fee is “unjust” and “unreasonable,” said plaintiffs Kimberly and William Bova, who are seeking class action status. By exempting subscribers in Ariz., Cal., Ida. and Nev. from franchise fees, Cox gave those customers “unreasonable preference or advantage,” plaintiffs said, and all franchise fees levied by company were unlawful charges, “entitling customers to a refund.” They alleged that Cox previously took position that its service was cable to avoid FCC regulation under Title 2, but reversed its position after 9th Circuit decision. “Cox appears to adopt contradictory positions regarding the classification of cable modem service as part of a relentless effort to avoid any government regulation for its own financial benefit at the expense of its customers,” they said. Although Cox acknowledges that cable modem service is telecom service in certain areas, it refuses to comply with laws protecting customers such as rate filing laws. Question of law and facts raised by plaintiffs include: (1) Whether Cox violated Title 2 of Communications Act. (2) Whether Cox could continue to impose franchise fee on cable modem service in other states after discontinuing it in 9th Circuit jurisdiction. (3) Whether Cox’s monthly subscription rates, which included franchise fee on cable modem service, were just and reasonable.
FCC Enforcement Bureau is proposing to fine WCOM(FM) Bayamon, P.R., $21,000 for broadcasting indecent material Original complaint was accompanied by tape of broadcast, and station admitted carrying material. Bureau said broadcast contained “graphic, patently offensive discussions of sexual activities or organs.”
Global growth of set-top boxes (STBs) should exceed $11.5 billion in annual sales in 2004, increasing installed base to 140 million, Multimedia Research Group (MRG)predicted. Growth of related digital services should exceed $11 billion annually, resulting in aggregated new revenues of more than $54 billion by 2004. Most service revenue will come from advanced versions of electronic program guides, personal video recorders, video on demand, interactive TV and pay TV, MRG said. Most new subscriptions will go to direct-to-home satellites.