Spain’s Telefonica Moviles Espana said it handled 339 million short message service (SMS) transmissions in Dec., for average of 26 SMS messages per client. For year, total of SMS messages reached 2.276 million, up 322% over 1999, carrier said. It said messages were being used by broader demographic than younger users with prepaid cards, with more than half of SMS transmissions involving subscribers with contracts.
Bill introduced in N.J. Assembly effectively would prohibit Verizon from seeking deregulation of retail or wholesale rates and services until its local market share fell below 50%. Measure declares that Verizon’s loss of half its current market share would be proof that effective local competition existed in state. At that point, company would be allowed to seek rate and service deregulation. Legislation (AB-3122/S-1522) would act by tying variety of regulatory requirements to market share test, including requirement for cost-based Verizon rates for unbundled network elements and carrier access, performance standards for wholesale services to CLECs, mandatory service quality standards, caps on retail basic service rates. Bill also would require full 3rd party testing of Verizon operation support systems and 90-day monitored commercial operation study as soon as practical, new service performance standards for all local exchange providers within 9 months of enactment, review of state’s service quality standards within 12 months of enactment. Bill would establish state universal service fund for high-cost areas. Another new Assembly bill (A-3103) would allow Board of Public Utilities to suspend payment of dividend distributions by any operating unit of an energy or telecom utility if board found company was providing inadequate service or was guilty of other major rule violations. Measure would allow company to place dividend payments in escrow pending finding that it had remedied problem. Bill is similar to Ohio law that state regulators last year used against Ameritech because of company’s inadequate service. Both N.J. bills are before Assembly’s Telecom & Utilities Committee.
Lucent plans to seek buyers for 2 of its 4 U.S. factories in next 6 months to cut costs. Company said it planned to contract out manufacturing in Oklahoma City and Columbus, O., which together have 8,400 employees. Lucent is in midst of major cost- cutting effort that began last year.
Comsat said it won 4-year, $1 million contract to provide high-speed (128 kbps) data and voice satellite communications to Radisson Seven Seas Cruises (RSSC) Seven Seas Mariner.
FCC hit Callais Cablevision with $133,000 fine late Fri. for repeatedly violating Commission’s cable signal leakage rules, largest amount ever assessed against cable operator for such problems. Agency found that Callais, which runs cable system in Grand Isle, La., violated leakage standards in tests on 3 separate days early last year, interfered with FAA aircraft approach frequencies, didn’t perform leakage tests on time and didn’t install necessary equipment to correct problem in time. FCC said Callais system, unlike MediaOne Detroit system fined $55,000 for signal leakage violations last year, deserved record fine because it showed “almost complete disregard for the rules designed to protect air traffic safety, including failure to offset frequencies and failure to make annual measurements to verify compliance with the basic leakage performance criteria.” Callais has 30 days to challenge fine.
Adelphia Communications said it raised $1.51 billion from sales of stock and debt, 71% more than planned. It said it sold 17 million Class A common shares to generate $761 million and $750 million of 5-year convertible subordinated notes. MSO, which lost $130.9 million in 3rd quarter ended Sept. 30, said it would use proceeds to repay bank loans.
Rockwell Collins extended $3 million development contract with Datron Systems to build satellite antennas that would allow commercial aircraft to receive broadband video and data over Internet for passenger entertainment. Datron received contract in Aug., but addition covers full funding for development of flight test units and establishes terms and conditions under which Rockwell may place future orders. Contract calls for delivery of 9 Ku-band antennas beginning in spring.
Independent Cable & Telecom Assn. changed its name to Independent Multi-Family Communications Council (IMCC) and elected new 31-member board. Group, which represents private cable operators, multifamily dwelling unit (MDU) owners and product manufacturers and vendors, said it made switch to focus more on “improved products and services for multifamily community residents” and MDU owners. IMCC said it would continue pushing for repeal of cable mandatory access laws in states and elimination of “barriers to competition” at FCC.
AOL Time Warner announced plans to repurchase up to $5 billion of merged company’s common stock and file universal shelf registration statement for $10 billion. After first board meeting Thurs., AOL Time Warner said it would begin buyback next month, making purchases from time to time over next 2 years, depending on market conditions. At same time, it will use $10 billion shelf registration to cover issuance of debt securities, common stock, series common stock, preferred stock, warrants. Company said moves would give it “greater financial flexibility” to take advantage of marketplace opportunities, boost return on capital, build shareholder value. Separately, AOL Time Warner CEO Gerald Levin donated $10 million to new National Cable Television Center and Museum in Denver in honor of his late son, Jonathan, N.Y.C. high school teacher murdered several years ago.
Research group Allied Business Intelligence (ABI) projected in report released Fri. that wireless location-based services revenue would grow to $40 billion in 2006 from $1 billion in 2000. ABI analyst Frank Viquez attributed expected growth, in part, to FCC’s Enhanced 911 requirements that mandate automatic location identification-capable wireless gear. ABI report said Sprint’s plan to deploy GPS chips for location-based technology in its handsets starting in mid-2001 would be boost to industry if handsets were delivered on time.