WorldCom expanded coverage of wireless Internet services to 7 cities, with plans to provide offering in 30 more areas by end of year. WorldCom said service uses its global IP network with Metricom’s Ricochet high-speed wireless network. (WorldCom is investor in Metricom.) Offering allows mobile access to Internet, corporate intranets and IP virtual private networks. Service is available in Atlanta, Dallas, Houston, N.Y., Minneapolis, Phoenix and San Diego, and will be launched by end of March in Baltimore, Denver, Detroit. Wireless Internet service will be rolled out later in year in Chicago, Kansas City, L.A., Philadelphia, San Francisco, San Jose, Seattle, Washington.
FCC ordered Intelsat to disclose confidential information about operations. Intelsat didn’t want to release information in draft Shareholders Agreement and Bylaws sought by outside sources. PanAmSat had filed petition reminding FCC that information Intelsat attempted to protect was provided routinely by other companies. Commission said information was needed to be made public to help others participate in rulemaking. FCC also extended deadline for comments to Feb. 22 and reply comments March 12.
Western Cable Show will return to Anaheim for 6 more years, after 2-year hiatus in L.A., Cal. Cable TV Assn. (CCTA) said Tues. CCTA, which sponsors show, signed new contract with Anaheim Convention Center that will keep convention at newly enlarged and refurbished facility through 2006. Anaheim officials estimated that cable convention, which draws more than 30,000 attendees annually, would generate nearly $200 million in revenues for local Orange County economy over next 6 years despite exodus of such major programmers as HBO, Showtime Networks and Discovery Communications as exhibitors. This fall’s show is scheduled for Nov. 27-30.
MPAA supports efforts by FCC to impose nonduplication, syndicated exclusivity and sports blackout rules under Satellite Home Viewer Improvement Act (SHVIA). In Mon. filing with Commission, MPAA said protecting parties rights to engage in contract negotiations with knowledge that exclusive agreements “would not be abrogated by importation of distant signals is fundamental” whether cable systems or satellite carriers retransmit distant broadcast signals. EchoStar “seeks to delay and erode obligations” placed on it by new roles by asking Commission to increase 120-day transition period to 1-year to implement program, MPAA said. MPAA said EchoStar has had more than enough time comply with new rules: “EchoStar now acts as if like Rip Van Winkle it has awakened to vastly changed landscape.”
Ericsson sales increased 11% to $8.55 billion in quarter ended Dec. 31, but earnings per share fell 64%. Swedish phone maker projected 15-20% sales growth this year and 6-8% operating margin as company increase investments in 3rd-generation wireless technology. Ericsson said it took additional restructuring charges of $830 million that it said would will raise cost saving to $1.56 billion this year. It said results were in line with previous guidance. Adjusted operating loss was $160 million, excluding capital gain of $1.6 billion from Juniper shares and other charges. Ericsson Pres. Kurt Hellstrom said mobile phone results “remain unsatisfactory.” Losses were result of “delivery failure from key suppliers and an inadequate product mix in the entry-level market,” he said. “The delivery failures have led to loss of large sales volumes and serious underutilization of production capacity, which has forced us into costly restructuring measures.” Separately, Qualcomm said in SEC filing this week that in last quarter it reached settlement agreement with Ericsson. Companies were in arbitration on concerns raised by Ericsson’s determination of purchase price for its purchase of Qualcomm’s terrestrial wireless infrastructure business in May 1999. Qualcomm disclosed that it agreed to pay Ericsson remaining balance of purchase price under asset purchase agreement, along with interest. Qualcomm also agreed to provide financing of up to $400 million to certain CDMA customers of Ericsson so they could buy CDMA infrastructure equipment and services.
One-third of Americans with home Internet access would give up TV rather than Internet if they had to choose between them, according to Arbitron/Edison study. Figure is even higher (47%) for those who regularly access streaming media, study said. Vp- Gen. Mgr. Bill Rose called figures “amazing” given newness of Internet. Full study, Streaming at a Crossroads, is to be released Feb. 2 at Radio Ad Bureau conference in Dallas.
FCC asked for comments by Feb. 13 on petitions by AT&T and WorldCom for review of Dec. 15 Common Carrier Bureau decision giving BellSouth pricing flexibility for special access and dedicated transport (CC Doc. 01-22). Replies are due Feb. 23.
FCC released public notice on winning bidders in PCS auction of 422 C- and F-block licenses, setting Feb. 12 deadline for payments to be made. Auction that wrapped up Fri. raised $16.8 billion. Winning bidders also have until Feb. 12 to submit long- form license applications. Notice also sets same date for companies to file petitions to deny any licenses.
STM said Entel Bolivia placed $2 million order for expansion of rural telephony VSAT network.
FCC gave U.S. international carriers 90 days to come into compliance with international licensing requirements if they weren’t already complying. After that, International Bureau will refer violators to Enforcement Bureau for possible action. Agency said Tues. it was concerned that some carriers and operators were providing unauthorized international service or operating unauthorized telecom facilities (DA 01-188). Ninety-day period begins when FCC notice is published in Federal Register.