Continuing his interest in privacy and wireless issues, Rep. Frelinghuysen (R-N.J.) introduced bill (HR-260) that would restrict wireless carriers’ use of information about their customers’ locations. Companies would be required to provide clear notice and get written permission from customers before collecting any information, and would have to maintain “reasonable” security procedures. FCC would have 6 months to write rules implementing law. Frelinghuysen, although not member of House Commerce Committee, this year alone has introduced bills to protect privacy of Social Security numbers (HR-91), protect general online privacy (HR-90) and prevent telemarketers from interfering with caller IDs (HR-89). His colleague from N.J., Rep. Holt (D), has introduced bill that would restrict wireless spam (HR-113).
Boeing awarded military satellite support contract to Harris for technical and logistical support for Wideband Gapfiller Satellite (WGS) program expected to begin in 2004, Harris announced Wed. Boeing gave Harris $300,000 to start project, which could be worth $7 million over 5 years. Contract may provide support for as many as 6 satellites, which would be used to provide additional Defense Dept. communications services. WGS is planned as bridge to Advanced Wideband Satellite system planned for 2008.
Nortel Networks plans “cyberopolis” in 24 key cities around world at outset, using all-photonic technology, COO Clarence Chandran said. After placement of infrastructure, Nortel will concentrate on interoperability with wireless handsets. Company is in partnership with AOL Time Warner.
Ameritech notified Mich. PSC that it planned to increase rates for basic exchange service 2.9% (36 cents monthly per line), effective March 1. Ameritech said it was entitled to basic rate increase as cost-of-living adjustment under inflation-indexing formula of its price cap regulation plan. Mich. Consumer Federation called increase “outrageous” because Ameritech already had 3rd highest local rates in country. And given company’s dismal service quality record last year, consumer group said, it’s “insult” to ratepayers to seek rate increase. Ameritech said requested rate increase would help it address service problems.
There’s no dearth of candidates for 3 vacancies on FCC -- with more than half dozen Republicans seeking 2 spots, while members of Congress push their favorites for Democratic vacancy. Third seat opened for sure Wed. when Comr. Furchtgott-Roth announced he wouldn’t seek reappointment to term that expired June 30. One of other vacancies is that of departed Chmn. Kennard. Comr. Ness is filling other one under recess appointment.
ABC Radio Group will use BuyMedia Marketron2000 software to manage ad sales process under new licensing agreement. Deal involves more than 50 stations.
Genuity, company spun off by GTE before its merger with Bell Atlantic, said loss expanded to $284 million in 4th quarter from $183 million loss year earlier. Company attributed increased loss to network infrastructure investments and marketing and sales initiatives. Genuity offers Internet infrastructure services to both ISPs and big telecom customers. “Genuity met its commitments for fourth quarter earnings despite a generally slowing business environment and the recent problems faced by some dot-com and service provider customers,” Genuity CEO Paul Gudonis said. “We felt the effects of this external environment in the form of softer new order growth and the need to add to our bad debt provision.” Company said revenue increased to $313 million in quarter, 55% up over last year. Genuity said AOL now represented 31% of its total revenue, compared with 47% in 4th quarter last year. Genuity also said: (1) It sold 19 Black Rocket Network Services Platforms in quarter. (2) DSL subscribers grew to 230,500, up 67% from 3rd quarter. For year, Genuity had $1.14 billion in revenue, up 61%, with net loss of $947 million.
SBC is offering monthly DSL packages that include optional purchase of one of 3 discounted DSL-equipped Compaq PCs. SBC spokeswoman said deal was aimed at people who didn’t want to commit to long-term contract. SBC has offered PC promotions before but not choice of 3. DSL package comes with Prodigy.
Future of optical networks looks promising, said 4 panelists at roundtable hosted by Patricia Sabga, co-anchor of “The New Economy Watch,” CNNfn. Questions were posed to panelists, Dan Smith, pres.-CEO, Sycamore Networks; Steve Alexander, chief technical officer, Ciena; Phil Becket, vp-product development, Corvis; Dave Tolwinski, Pres. -CEO, Tenor Networks. Panel focused on business potential for companies, explored idea of “you build it, they will come.” How will technologies become profitable was answered with usual “comprehensive approach, including marketing, importance of having good customer base, having best technology, funding…” However, Smith suggested reducing FCC to 3 members. Alexander said optical networking was crucial to Internet proliferation.
Holding its first meeting with investors and analysts in N.Y.C. Wed., AOL Time Warner said it posted sizable revenue, cash flow, subscription and other gains for its online and cable system operations in 4th quarter ended Dec. 31 and for all of last year. But, with its film and music units showing particularly sluggish results, newly merged company reported much heavier pro forma losses for quarter and year despite overall revenue growth. AOL Time Warner said it expected continued strong revenue, cash flow and subscription growth in first quarter 2001 and for whole year but declined to forecast future earnings results. Company also outlined commercial launches and marketing trials for various new services, including video-on-demand (VoD), IP telephony and multiple ISP offerings, and expanded “strategic relationship” with TiVo.