AT&T announced its first voice over IP (VoIP) retail service that lets businesses combine voice, fax and data traffic on one IP connection. Company said it would add VoIP to all of its managed network services this year. It’s now available as part of AT&T’s Managed Internet Service and Managed Router Service. At ComNet show in Washington, AT&T also announced: (1) OC-48 dedicated Internet access. (2) Provider-class hosting bundle. (3) New Internet data centers in Washington and Dallas. (4) Virtual Communication Services, which extend PBX features to teleworkers.
Lightyear Communications announced it would merge with VarTec Telecom, facilities-based telecom provider. Lightyear offers data, voice and Internet services to business and residential customers. Companies, both privately held, didn’t disclose financial terms.
Strategis Group projected wireless data would reach 60% U.S. penetration by 2007, from current 2%, and mobile data subscribers to 172 million from 5 million. In new report, research firm predicted that fastest growth would come from packet data over cellular and PCS networks, which it forecast would constitute 67% of market in 2007. Short message service messages are expected to comprise 14% of mobile data market in 2007, group said.
New bill in Wash. House would provide exemptions from sales, use and business personal property taxes as incentive to promote rural advanced-telecom development. Under legislation (HB-1239), state would waive sales and use taxes on equipment or facilities purchased or used by telecom companies to provide advanced telecom services in rural areas. It also would give telecom companies credit of 50% on business personal property tax normally due on such equipment. Tax incentives would expire after 2007 tax year.
Not surprisingly, AT&T posted significant loss Mon. as it continued to face falling prices in long distance business and dealt with expenses in its broadband unit involving acquisition of MediaOne and impact of its investment in Excite@Home. Despite sharp decline, AT&T’s results were within analysts’ expectations for beleaguered company that’s in midst of restructuring itself. Bright spot was 39% revenue growth in company’s wireless unit, which it plans to spin off this year.
RealNetworks signed multiyear deal with NBA to stream video and audio of basketball games on Internet, they said. Games will be available via RealNetworks’ $9.95-per-month GoldPass subscription service beginning Feb. 1. RealNetworks also said GoldPass had signed up 150,000 paying subscribers since debut 5 months ago.
Technology and telecom law firm Steptoe & Johnson completed its merger with U.K. firm Rakisons, they said, becoming Steptoe & Johnson Rakisons. Firm’s new technology, Internet and media group will be headed by David Judah in London and Stewart Baker in Washington.
Single-chamber Neb. legislature’s Transportation & Telecom Committee is to open hearings today (Jan. 30) on group of bills intended to level competitive playing field between municipal electric utilities and private telecom sector in dark fiber leasing business. One bill (LB-41) would effectively set aside PSC ruling last year that municipal electric utilities couldn’t lease excess dark fiber in their private telecom networks because that’s telecom service not covered by their electric franchise. Bill would give municipal utilities right to lease dark fiber to state-certificated telecom carriers, but not to end users. Another bill (LB-463) would allow municipal utility fiber leasing only through separately financed subsidiary subject to PSC regulation and same taxes and fees as private sector. Group of similar bills (LB-827, LB-89 and LB-90) would allow municipal utility dark fiber leasing providing all or portion of profits be used to support development of advanced phone services in rural areas. Bills also differ in how profits would benefit rural services. Neb. Telecom Assn. said it opposed bills because they effectively would reward municipal electric utilities for overbuilding their telecom networks and didn’t address fundamental problem of unfair competition between not-for-profit municipal utilities and private enterprise.
Cable operator serving fewer than 677,000 subscribers will meet definition of small cable operator, FCC said in new subscriber count for defining small operator. Commission said it had determined that there were 67.7 million cable subscribers in U.S., based on most reliable source publicly available. Commission’s rules define small cable operator as one that directly or through affiliate serves less than one percent of all subscribers in U.S. and isn’t affiliated with any entity or entities whose gross annual revenues exceed $250 million. Small cable operator is eligible for rate deregulation.
Richard Roscitt, ex-AT&T, named chmn.-CEO, ADC, succeeding William Cadogan, retired; Lynn Davis advanced to pres.- COO… Changes at Spacenet: Nicholas Supron, ex-GTech Holdings, named pres.-CEO, replacing pres.-COO Sheldon Revkin, who becomes vice chmn.; Allen Coe, ex-Packard Bell, named COO… Alexander Fuchs, ex-Dash.com, appointed dir.-information technology, Global Broadband… Elected to Liberate Technologies board: Christopher Bowick, senior vp-engineering and chief technical officer, Cox Communications, succeeding Bradley Dusto; Dana Evan, CFO-exec. vp-finance and administration, VeriSign… Ted Koppel, ABC, will be inducted into NAB Hall of Fame April 23… Changes at Cumulus Media Lewis Dickey, named chmn., pres.-CEO; Jonathan Pinch, appointed exec. vp-COO; Marvin Gausvik, becomes exec. vp-CFO- treas.; John Dickey named exec. vp; Richard Weening resigns as exec. chmn.-treas… James Miller, USA Network, elected to Superus Holdings board… Promotions at Univision: Judith Kenny to senior vp-N.Y. network sales mgr.; Daniel Thomas to senior vp-sales development & mktg.; Peter Pouliopoulos to vp-sales development and mktg… Clarification: Outgoing NTIA employees Art Brodsky and Cinnamon Rogers weren’t political appointees (CD Jan 29 p10).