If communications lobbyists could go back in time and rewrite Telecom Act, Bell companies would be first to grab their pens, with broadcasters close behind, according to interviews by staff of Communications Daily. We asked industry representatives, Capitol Hill officials and others what they would change if they could rewrite Act with benefit of 5 years’ hindsight. Cable representatives appeared least likely to want change, having won deregulation, capital and entry into telecom business through Act. Views of CLEC interests ranged from structural separation for Bell companies to stricter enforcement.
Orbital said company-built BSAT-2a geostationary satellite arrived Wed. at launch site in Kourou, where it’s scheduled to fly March 2 aboard Ariane 5. Orbital will work with Japan’s Bcstg. Satellite System Corp. (B-SAT) and Arianespace on tests until launch. Satellite is first of 2 that B-SAT will use for direct- to-home digital TV broadcasting.
Nokia plans to deploy General Packet Radio Service (GPRS) core network equipment for Bolivian GSM operator Nuevatel, terms not announced. Nokia said agreement also covered professional services. In first half of year, Nuevatel plans to roll out wireless chat application that provides group-based communications for subscribers. At outset, service will be based on Wireless Application Protocol and GPRS. Companies said Nuevatel would be first wireless carrier in Latin America to offer wireless Internet services over GPRS. Nuevatel, which began service in Dec., is 67% owned by Western Wireless and 33% by local operator Comteco.
Parallel Minn. bills to carry out telecom reform plan of Gov. Jesse Ventura (I) have been introduced. Measures (HF-510/SF-554) would create state universal service fund to support high-cost service areas, Lifeline phone subsidies, state deaf relay service, $100 million revolving loan fund for deployment of advanced telecom services. New fund would be supported by 5% state excise tax on all retail telecom and cable services and “other multichannel video programming services” billed to Minn. customer. All retail rate changes would be presumed just and reasonable unless 5% of customers petitioned PUC for rate review. Legislation would deregulate rates for any telecom service where 75% of customers had competitive alternatives and deregulate telecom resale by hotels, motels and resorts except for requirement that providers notify customers of their rates and of any rate changes. For companies under alternative regulation plans approved before measure’s passage, deregulation provisions wouldn’t become effective until current plan expired. Bill also would require cost-based rate deaveraging for retail basic services, with resulting rates capped for next 2 years. Other provisions would streamline process for obtaining state telecom certificate but require all prepaid and competitive telecom providers to obtain certificate or license from PUC, and for prepaid providers to post bond against failure to deliver services. Bill also would allow municipalities to provide telecom services to their citizens on their own or through joint ventures where fewer than 50% of customers enjoyed actual competition. Measure would give PUC jurisdiction over telecom mergers, broad power to combat slamming and cramming, toughen minimum requirements for establishing extended local calling, and require landlords to allow access for competitive telecom and cable providers wanting to serve tenants. It would end cable franchising by municipalities, with franchises after Dec. 31, 2002, granted only by PUC, for up to 15 years. PUC could terminate franchise for cause, and would review all cable franchise transfers. Municipalities would get 5% franchise fee on gross receipts from locality. PUC could delegate franchise enforcement to municipalities. Cablers would have to give customers 30 days’ notice of changes in rates, channel positions or programing, provide emergency alert override capabilities and public access channels. Parallel bills are pending in House and Senate utilities committees.
After increasing in Dec., average wireless phone service costs dropped last month in many parts of U.S., according to survey by research firm Econ One. Monthly cost of service dropped average of 1.6% to $38.97 in Jan. Of 25 cities surveyed, only 6 - - including Washington -- had average rate increase, firm said. Washington prices rose 2.1% to $38.42 on average across 4 types of usage plans, firm said. Other cities that saw increases were Boston, Dallas, Kansas City, Pittsburgh, St. Louis. Econ One Senior Economist Charles Mahla said many of Jan.’s price changes were result of plan introductions or deletions that companies put in place after recent round of wireless mergers.
Howard Waltzman, ex-Sen. Brownback’s office (R-Kan.), named telecom counsel, House Commerce Chmn. Tauzin’s office… Former Rep. John Porter (R-Ill.) elected to PBS board… Appointed at WorldSpace: Timothy Puckorius, ex-Orbital Imaging, as senior vp- worldwide mktg. and sales; Yajaman Bhushan, ex-ICO Global Communications Services, as senior vp-business integration and product strategy; John Novack, ex-Access Teleconferencing International, Vialog Corp., as senior vp-finance… Glenn Curtis promoted to exec. vp-CFO, Starz Encore Group… Jonelle St. John, ex-Worldcom International, elected to Motient board… Susan Pedersen, ex-Cal. PUC, named exec. dir., Cellular Carriers Assn. of Cal… Deborah Shinnick, ex-ABC, appointed vp-dir.-audience and programming analysis, Univision… Thomas Donohue, U.S. Chamber of Commerce, joins Qwest Communications board, replacing George Harad, resigned… Donald Casey, Exodus Communications, named to Aspect Communications board… Thayer Bigelow, ex-Time Warner, appointed chmn., “H” company, recently renamed from Halloran Robertson & Assoc., San Jose, ad agency and mktg. technology provider. Correction: Douglas Bonner, partner; Elizabeth Dickerson and Brett Snyder join LeBoeuf, Lamb, Greene & MacRae, not LeBoeuf, Lamb, Greene & McRae (CD Feb 6 p7).
Sprint unveiled plans to expand its Internet backbone in Europe and Asia, including linking 15 cities in 13 countries by end of 2001. Sprint said expansion would cover 35 countries by end of 2003, connecting business centers in Europe with 10 Gbps backbone. “Our global IP network expansion is in line with the goal to have 50% of Sprint’s revenues derived from data and broadband services by 2003,” Sprint Global Business Markets Group Pres. Len Lauer said. Sprint now offers dedicated IP service to 30 countries and Internet virtual private network service to 69. Expansion plans include IP nodes in 14 new cities by end of 2001, including Amsterdam, Frankfurt, Hong Kong, Paris, Singapore, Sydney, Tokyo.
Cable industry now has signed up 10 million digital video, 4 million high-speed data and one million cable telephony customers, NCTA Pres. Robert Sachs said Tues. Praising Telecom Act for promoting broadband investment and competition, he told Washington Metro Cable Club luncheon audience that cable industry had spent more than $42 billion upgrading its plant in 5 years since Act was passed. He also predicted that cable would emerge as vigorous competitor to phone companies in local telephony market over next 5 years, thanks to development of IP telephony over cable lines. In related move, Sachs said NCTA was changing its name to National Cable and Telecom Assn.
Cable networks “offer advertisers unique opportunities” and industry must “exploit those opportunities because none of us is really satisfied with getting such a small percentage of the pie,” Viacom Pres.-COO Mel Karmazin told Cable Ad Bureau conference in N.Y.C. Tues. He cited statistics showing that cable accounted for only 5.5% of total ad pie as evidence that cable ads had bigger potential for growth compared with other media. Advertising “has become so much more important” than ever before that even in “unlikely” event of recession this year, ad dollars “will not dip” in 2001, Karmazin said. He said Viacom believes that overall ad revenue would grow 5.8% in 2001, with more “significant” increase likelier in 2nd half than in first because of “difficult” comparisons with first 6 months of 2000 owing to “dot.com” phenomenon. Karmazin said he started in ad business in 1967, “and in my entire career of selling advertising, I never saw anything like what we experienced with the dot.coms.” He complained that dot.coms were “freely” given “ton of money” by Wall St. to spend “in a manner that had no relevance to return on investment or toward getting results. It was all about getting more visible so they could sell more stock.” Future of cable advertising is even rosier than that of general industry, and if overall ad revenues are expected to grow 5-6% this year, cable ad growth will be at much faster pace, Karmazin said, without being specific. He said ad revenue had grown in every year since 1990 except for 1991 when Gulf War sparked recession. Chastising journalists, he said, who “write all those obnoxious reports” casting doubts about ability of cable ad industry to withstand recession, Karmazin said that in 1991 cable ad dollars jumped 14% when U.S. economy posted virtually no growth. He said factors that had made advertising relatively impervious to economic downturn included increasing competition, rising importance of branding and sheer growth in number of new products. He said proof that 2001 would be robust ad year could be found in results of CBS Super Bowl telecast; he said average commercial spot this year brought in $2.3 million compared with $2.1 million in ABC broadcast year ago, despite fact that number of dot.coms buying air time dwindled to 3 from 17.
LOS ANGELES -- Survey on sex on TV by Kaiser Foundation found that amount of sexual content on TV had risen 12% since 1997-1998 season. Study said average show had more than 4 scenes with sexual content per hour. Prime-time programming had highest levels of sexual content with 75% of shows, up from 68% in 1997- 1998, study said. Good news, if there was any, was that only 27% of shows on TV included sexual behavior, with rest having characters talking about sex.