Utah legislature passed and sent to Gov. Mike Leavitt bill (HB-184) to repeal 2000 state law that in July was to merge state’s independent utility consumer advocate agency, Utah Committee on Consumer Services, into Utah PSC. Intent was to streamline state’s utility regulation processes. Leavitt spokesman said governor would sign repeal bill. PSC Chmn. Stephen Mecham called legislature’s action Tues. “an appropriate outcome” for controversy that had plagued Republican majority in legislature since last year’s law was passed over strong objections from Democrats and consumer interests. Critics claimed last year’s HB-320, if implemented this summer, would increase chances that state’s answers to energy and telecom problems could impose unfair and excessive burdens on telephone, electric and gas ratepayers. House Majority Whip David Ure (R-Kamas) at first tried to amend last year’s law to restructure PSC and its processes, but conceded defeat after consumer interests flatly rejected anything less than repeal of HB-320. Both chambers voted to suspend normal rules to move repeal bill through swiftly.
FCC issued call for comments Wed. on use of unbundled network elements (UNEs) to provide exchange access service. Agency said it wanted more information to help it determine whether ILECs should make combinations of UNEs available to other carriers that wanted to use them instead of tariffed access service. Agency said last year it planned to seek comment in early 2001. Among questions: “Is the exchange access market economically and technically distinct from the local exchange market” and if so “are requesting carriers impaired in their ability to provide special access services without access to loop-transport combinations.” Comments are due 30 days after notice is published in Federal Register. (CC Doc. 96-98).
Request by Verizon Wireless last week that FCC postpone 700 MHz auction received broader wireless industry backing Wed., with submission of comments by Cellular Telecommunications & Internet Assn. (CTIA) supporting postponement. CTIA reiterated arguments made by Verizon that delay until Sept. 6 was warranted, in part to allow enough separation between current PCS auction and start of 700 MHz bidding. CTIA also cited factors such as additional time needed by bidders to prepare for first FCC auction that would use combinatorial bidding. “Conducting the auction under the existing uncertainty would devalue the 700 MHz spectrum and increase the likelihood that the American public would not realize the full economic and public benefits of a 700 MHz auction,” CTIA said.
“We need to move the process of Sec. 271 into high gear,” new House Commerce Committee Chmn. Tauzin (R-La.) told us in Wed. interview on his priorities for House session that begins Jan. 30. On none of his core issues was Tauzin ready to propose specific legislation. He said panel would explore several options for getting Bell companies into long distance, depending on FCC cooperation. Tauzin also said he still was unsure how much legislation would be required to reform FCC and how much new agency Chmn. Powell could accomplish on his own. He said he would ask Committee “literally to do a top-down review of the digital [TV] transition,” which he said was “really off track now.”
In Demand signed deal with AtomFilms to offer some of latter’s short films to digital cable operators and subscribers on video-on-demand (VoD) basis, starting in March. Companies said AtomFilms would make available 10 movie titles, as well as compilations of 5 comedy and action shorts, TV series episodes and other programming. Deal comes after In Demand signed several VoD licensing agreements with Comedy Central and Court TV.
Nextel is buying 900 MHz Specialized Mobile Radio (SMR) spectrum from Arch Wireless for $175 million plus agreement to invest $75 million in preferred stock. Nextel, which dropped out of FCC’s C-block PCS auction in recent weeks as prices climbed, said it planned to advance $250 million in loans to newly created Arch subsidiary that would hold 900 MHz licenses until transfers were approved, which Nextel expects will be finalized in 6 months. Nextel Pres. Timothy Donahue said agreement would give company 20 MHz of SMR spectrum in 800 and 900 MHz bands in 52 of top 100 markets. Arch Chmn. Edward Baker said decision to sell SMR spectrum was result of company’s upgrade of its 2-way network, which is designed to increase capacity. As result, SMR licenses would be redundant to its spectrum requirements, he said. Arch has 5 narrowband-PCS licenses. Separately, Fitch assigned B+ rating to Nextel’s $1.25 billion senior note offering. Fitch said rating reflected company’s “strong operating performance,” improving credit measures, strong liquidity position. Fitch said those positive factors were “somewhat offset by an increasingly competitive wireless industry and uncertainty with respect to Nextel’s possible participation in the upcoming 700 MHz auction.”
As expected, FCC has embarked on reexamination of whether there is continued need for spectrum cap and cellular cross- interest rule for commercial mobile radio service providers. Notice of proposed rulemaking (NPRM) issued late Wed. (CD Jan 23 p1), but approved by FCC last Fri., seeks comment on whether wireless market has changed significantly since last time agency examined issue in 1999, when it decided to keep spectrum limits intact to safeguard competition. Point is to examine whether competition has grown to extent that spectrum restrictions can be lifted or relaxed, NPRM said. Questions in notice included role FCC plays in examining market impact of wireless deals vs. purview of Dept. of Justice.
Viacom completed its previously announced purchase of BET Holdings II for $3 billion in stock and assumption of debt. Under new structure, BET founder Robert Johnson will remain chmn.-CEO of BET, reporting to Viacom COO Mel Karmazin. Debra Lee will stay on as BET’s pres.-COO. BET also will keep its home in Washington.
ESPN, 4 cable MSOs and DirecTV will conduct single-screen interactive TV (ITV) tests with NHL and Winter X Games programming next week. ESPN, which had offered only 2-screen ITV enhancements involving both TV and PC up until now, said Feb. 3 trial during 4 hours of live, prime-time programming would use infrastructure services and/or software of Commerce.TV, RespondTV, Wink. Company said each telecast would feature 3 main enhancements -- access to enhanced participant/event content, enhanced commercials, merchandise purchase offers. Viewers will be able to use their remote controls to access enhancements.
Jonas Neihardt promoted to head of Washington office, Qualcomm… Wendy Cutler, ex-USA Networks, appointed dir.-member services, Cable TV Ad Bureau… Randy Livingston, ex-OpenTV, becomes vp-business affairs and CFO, Stanford U… Barry Boniface, ex-Cypress Communications, named vp-corporate development, BellSouth… David Coler promoted to COO, National Decision Systems…Michael Jordan, exec. chmn., Clariti Telecommunications International and ex-CBS, elected to ScreamingMedia board.