Southwestern Bell received contract from Tex. General Services Commission to provide high-speed data and telecom products and services to state govt. agencies. Southwestern Bell said its contracts under TEX-AN 2000 program carry value of up to $400 million over next 4 years. Under contract, company said state agencies and other public entities now can receive long distance service from SBC subsidiary as well as advanced access, data and transport services.
U.S. Appeals Court, D.C., sided with FCC Fri. on its 1999 ILEC pricing flexibility order, rejecting challenge by long distance providers such as AT&T, Time Warner Telecom, WorldCom. Decision written by Judge David Sentelle concluded that long distance carriers’ objections to colocation thresholds set by agency in order “are no more than policy differences with the Commission.” Decision said FCC must provide rational basis when setting such standards, “but it is not held to a standard of perfection.” Court ruled Commission made reasonable decision that colocation was “a sufficient proxy for market power” in ascertaining whether to grant LECs such pricing flexibility.
FCC is seeking comment on petitions filed by entities that seek declaratory ruling under Sec. 310(b) of Communications Act that it would be in public interest to allow Deutsche Telekom (DT) to have indirect ownership interest of greater than 25%. Indirect ownership interest would be result of consummation of proposed merger of VoiceStream and DT that’s pending before Commission. Petitions include one filed by Cook Inlet/VoiceStream GSM ventures on giving DT indirect ownership of up to 49.9%. Cook Inlet/VS GSM IV PCS and Cook Inlet/VS GSM V filed petition last fall. Petition also was filed by various Cook Inlet and Omnipoint entities. Third petition, by Wireless Alliance, said it would be in public interest that DT have indirect ownership interest of up to 30%. Similar filing was made by Iowa Wireless Services Holding proposed indirect DT ownership interest of 38%. Final petition, by Eliska Wireless Ventures License Subsidiary, proposed 49.9% indirect equity interest. FCC said it already had granted petitions for declaratory ruling for 2 petitioners -- Cook Inlet/VoiceStream PCS and Eliska and wasn’t seeking comment on those cases. Comments are due Feb. 22, replies March 8.
Qwest won $100 million contract to wire 228 public school districts in Ariz. with high-speed Internet access through local area broadband networks. Under agreement with Ariz. School Facilities Board, Qwest will provide network consulting, architecture, maintenance, security. Local area network services with speeds of up to 100 Mbps will be supplied to 1,222 schools by June 2003, Qwest said.
Globalmedia.com said it completed sale of its radio contracts and other streaming media assets to SurferNetwork for total of $2.25 million, including $1 million cash and one million shares of stock. Globalmedia.com recently changed its strategy to streaming video over Internet instead of streaming audio.
BellSouth said Fri. it was exiting payphone business in move it partly attributed to migration of customers to wireless phones and interactive pagers. Company said it would begin transition “immediately,” with completion expected in Dec. 2002. BellSouth said it was giving customers and payphone location providers almost 2 years’ advance notice “to allow sufficient opportunity for the identification of other technologies.” BellSouth Network Services Pres. Charles Coe said: “This decision will allow BellSouth to focus on its core broadband, Internet and digital network offerings, as well as domestic wireless data and voice business and Latin America.” Company has 143,000 payphones in southeastern U.S. and BS said that since 1998, usage of those phones had dropped “dramatically.” BellSouth also said payphone industry has had to compete with declines in rates long distance carriers pay to payphone service providers for 1-800 and other “dial-around” calls.
Ky. Attorney Gen. Benjamin Chandler urged state legislature to tighten “embarrassing” number of exceptions to state’s “no- call” telemarketing list law. Current law allows 22 exemptions, which Chandler said means 95% of telemarketers doing business in Ky. legally can ignore no-call list. He proposed reducing exemptions to just 6: Charities, newspapers selling subscriptions, colleges, public schools, businesses calling current and former customers, home businesses that solicit fewer than 15 customers per week. Chandler also called for tougher penalties for telemarketers who call numbers on no-call list, including criminal prosecution for misdemeanor on first offense and as felony for subsequent offenses.
Because profitability of developing new media strategy is unclear, many radio industry executives believe new media options such as Internet streaming audio and digital satellite radio don’t pose significant threat to their core business, and to great degree, “radio industry may be in denial,” CPB-funded study said. Despite research that showed definite audience interest in radio station Web sites and streaming audio options, many broadcasters have remained on sidelines, report said, quoting Arbitron figures that only 3,700 of 11,000 commercial radio stations in U.S. were streaming their terrestrial signals. Few stations have built Internet staff or created budgets to develop Internet business model, study found. Research indicated that when household had broadband access, terrestrial radio listening declined measurably. Households with access to broadband are expected to increase to 32 million in 2004 from present 6 million, study said, and streaming audio is well ahead of terrestrial radio in broadband homes compared with those having dial-up access. One-fourth of broadband households have annual income of more than $100,000 (as against 17% for dial-up households), and it’s challenge to both commercial and public radio to retain attention and favor of that group, it said.
Sonicblue said it planned to buy ReplayTV for undisclosed amount. Sonicblue said letter of intent called for it to issue 16 million shares of common stock, options and warrants to purchase ReplayTV, which competes against TiVo and Microsoft in nascent personal video recorder (PVR) market. With deal, still subject to regulatory and ReplayTV stockholder approvals, Sonicblue said it would incorporate ReplayTV’s PVR technology into its “networked home entertainment” business.
Six new Senators were added to Communications Subcommittee Thurs., as panel swelled to 20 from last year’s 18 to allow Democrats to gain 2 additional seats. New Republicans are Sens. Smith (Ore.), Fitzgerald (Ill.), Ensign (Nev.), Allen (Va.). New Democrats are Sens. Boxer (Cal.) and Edwards (N.C.). Chmn. remains Sen. Burns (R-Mont.).