FCC ruling on 700 MHz spectrum auction (CD Jan 24 p6) will “demonstrate to shareholders the value of the television spectrum,” Pax TV said. Chmn. Lowell Paxson said new rules would allow market to determine adequate compensation for broadcasters to vacate spectrum early. He said company, which owns 18 TV stations in band, plans to “take a leadership position and set the tone for negotiations with the wireless telecom winners in the upcoming auction in an effort to speed the transition to digital television and monetize the value of our spectrum.”
Sweden’s Telia reached agreement with Seattle-based Tenzing Communications to test and deploy wireless Internet access on airplanes. System would provide wireless laptop PC access and to receive and send e-mail during flight. Companies said SAS would be first European airline to use technology under agreement with Telia, terms not disclosed.
House Ways & Means Committee ranking Democrat Rangel (D-N.Y.) will soon introduce bill to provide tax credits for minority ownership of telecom and broadcast companies, but not until he has “bipartisan agreements” in place, spokesman told us. Spokesman said Rangel has “some disagreements” with Senate Commerce Committee Chmn. McCain (R-Ariz.), who plans similar bill on Senate side, particularly about “scope” of program and “who would qualify.” However, he said “we're fairly optimistic” in what’s “good political environment,” adding that bill could be “good test of bipartisanship.” McCain spokeswoman said he’s “working on a bill” but “we don’t have details yet.” She added that McCain “is pleased that the House is also working on this issue.” Tax certificate program for minority ownership was repealed in 1995, but with recent Commerce Dept. report finding just 4% of TV stations owned by minorities there’s pressure for new program. Rangel spokesman said it’s important that program be done right this time, and that there be no repeat of earlier problems of large companies using minorities as front men to get discounts. “We want to make sure we close those loopholes,” he said. Former Ways & Means Committee Chmn. Archer (R-Tex.) was public opponent of tax certificates. Views of new Chmn. Thomas (R-Cal.) are unknown, although he voted for repeal in 1995.
Internet pioneer Vinton Cerf of WorldCom will keynote NAB convention in Las Vegas April 25, Assn. said. Speech will be on “The Future of Technology.”
Spectrum availability and how wireless technology can help bridge digital divide will dominate wireless policy arena this year, CTIA Pres. Thomas Wheeler said at press lunch Tues. He said CTIA was “very hopeful” FCC would address industry concerns on spectrum cap. CTIA has been urging agency to lift 45 MHz cap for all but rural markets, where ceiling is 55 MHz. Wheeler pointed out that in past FCC orders that dealt with cap, newly named Chmn. Powell had questioned why existing ceiling should remain intact. Lifting it would provide “interim relief” while 3rd-generation policy debates continued on whether and how to free additional spectrum for advanced mobile services, he said. Lifting cap “will buy you the 18 months that you need to get to the tough decisions,” he said, referring to 3G. Wheeler stressed prominent role Japan and European countries have taken in wireless Internet, in part by govt. policies that have made spectrum available and issued licenses. “God bless the Clinton Administration for starting the spectrum policy review process,” Wheeler said of 3G. “But they couldn’t bring it to fruition. And it now falls to the Bush Administration to deal with the really hard parts and make decisions.” Wheeler praised NTIA proposal last week on reimbursement for federal agencies that must relocate from existing spectrum (CD Jan 18 p2). NTIA outlined changes on how private sector could reimburse agencies, including possible relocations connected to 3G decisions involving military spectrum. “It might just be the underlying key point so far to be raised in breaking whatever gridlock there might be in creating access to spectrum,” Wheeler said. As for Verizon Wireless’s request to FCC last week that agency delay 700 MHz auction beyond March 6, he said he still was making calls to members on group’s position. (Comments are due Jan. 24). “Their concern is not an illegitimate concern,” Wheeler said of request to push back bidding for at least 2 months but preferably until Sept. 6. “You have to be in a position where you can work out bidding alliances, structures and trading spectrum and all these kinds of things to get you set for the next auction. But you are prohibited, because there’s an ongoing auction, from doing those very things.” In other policy areas, Wheeler said he hoped agency would address outstanding issues such as calling-party-pays and reciprocal compensation and privacy, including CTIA’s Nov. petition that proposed privacy principles covering mobile location-based services. He said he was hopeful FCC would move on privacy issues, although he said there was intra-agency debate on whether it belonged in Common Carrier or Wireless bureaus.
FCC opted against adopting cost-sharing rules, cost caps or recovery guidelines to help clear incumbent analog broadcasters from Ch. 59-69 spectrum set for auction March 6. Such measures, on which agency sought comment last year, are “not necessary or appropriate at this time,” Commission said. Decision, made last week and released Tues., “leaves cost-sharing arrangements to voluntary negotiations among new wireless licensees,” agency said. Commission also left implementation of secondary auction process for band-clearing rights to “private, voluntary efforts.” FCC earlier had sought comment on whether govt. or private sector should oversee secondary auction. Decision expands on rebuttable presumption in earlier Commission action. Initial policy provided that under specified circumstances, voluntary arrangements for incumbents to exit spectrum ahead of Dec. 31, 2006, DTV transition would be in public interest. Presumption applies to agreements between 700 MHz wireless licenses and incumbent broadcasters. Now, FCC has expanded that to 3-way agreements, allowing Ch. 59-69 incumbents to relocate to lower band TV channels, which in turn would be cleared voluntarily by incumbents in lower band. Without providing details, Commission said it provided guidance on interference issues that could arise from proposal to relocate broadcaster to channel below Ch. 59. Agency also adopted changes to streamline review of regulatory requests needed to put private band-clearing agreements into force. Report and order received approval of all commissioners, with exception of Comr. Tristani, who approved in part and dissented in part. In separate statement, Tristani reiterated earlier concerns over rebuttable presumption, saying band-clearing proposals needed case-by-case review. She said her earlier concerns extended to 3-way channel swaps. “Although the Commission’s action purports to facilitate the DTV transition with only a temporary loss of service for today’s viewers of over-the-air television, I fear it will do neither,” she wrote. “Moreover, 3-way swaps may result in loss of service not only for viewers of channels 59-69, but in the core spectrum as well.” In statement that was longer than agency’s news release on order, Tristani said she was concerned about impact on overall DTV transition. “Nothing in today’s decision requires a broadcaster to give up its analog operations in favor of digital-only service,” she said. Instead, broadcaster could operate in analog format on digital channel allotment under 3-way swap. Citing “negligible penetration” of DTV sets, Tristani said that made it likely broadcaster would choose to continue analog operations on its only channel “and ‘free ride’ on the efforts of other broadcasters to complete the digital transition.” She also objected to majority’s treatment of so-called lone-holdouts, or single incumbent broadcaster who refuses to leave spectrum block that otherwise is cleared of UHF operators. She said decision didn’t express view on mandatory relocation, but said FCC would revisit matter if needed. Tristani stressed that such action would contravene statutory mandates.
N.J. Senate Education Committee passed onto Senate floor bill (A-592) that would bar K-12 schools from posting personal information about students on their Web sites. Bill, passed by Assembly last year and held over for 2001 session, is intended to address concerns that pedophiles and other criminals might use personal information on schools’ Web sites to harm children. Bill was inspired last year by S. Jersey school district that posted names and pictures of students going on class field trips.
AssureSat will complete first round of funding by end of March and start construction of its first satellite (CD May 5 p5), spokesman said. Company is beginning to implement plans to provide first backup satellite capacity in space for satellite operators, manufacturers, suppliers. AssureSat has borrowed $300 million and is working with investors on equity plan to begin service, which will be alternative to launch insurance, spokesman confirmed. Company estimated startup costs for service at $500- $600 million. Investors include Credit Suisse Group, Space Vest, Swiss Reinsurance. Loral has contract to build 2 geostationary satellites. Design work is complete, spokesman said, and Loral has purchased parts for satellites that must be ordered in advance. Sea Launch will provide launch services. Clients will pay AssureSat premiums to use satellites in case of problems with their own for period of 4-30 months, spokesman said. Company said it has deal with Loral Skynet and plans to announce more contracts in coming months.
Wireless Communications Assn. annual technical symposium that ended Fri. in San Jose drew record attendance of 1,185, up from 235 year ago. Next technical symposium is set for June 24-27 in Boston.
Cingular Interactive ended 2000 with 570,000 subscribers on its intelligent wireless network, up from 200,000 year ago. Company, said numbers included wireless users of Palm devices, AOL Mobile Communicator and BlackBerry e-mail solution.