Scientific-Atlanta (S-A) said its net earnings more than doubled to $70.8 million in 2nd quarter ended Dec. 29 as bookings rose 52% to $707.3 million and sales climbed 69% to $631.4 million, driven largely by equipment maker’s broadband business. S-A, which announced big gains in subscriber bookings and smaller gains in transmission bookings over previous 2nd quarter, said it shipped 1.11 million Explorer digital cable set-top boxes in 2nd quarter, up from 1.03 million in first quarter, and received orders for more than 1.5 million boxes. Company said backlog at end of quarter exceeded 2.1 million units. S-A, which now has shipped nearly 5 million Explorer set-tops, also announced plans to boost production capacity to 1.5 million boxes per quarter by end of March.
Fox won’t promote Temptation Island in family-oriented shows, it said in letter responding to concern of FCC Comr. Tristani (CD Jan 19 p11). It said promos had been carried during such shows “on a limited number of occasions,” but that would stop “in the spirit of” network’s new policy of not accepting ads for R-rated films in family-oriented shows.
Ohio PUC found Ameritech Mobile and AirTouch Cellular guilty of violating regulatory requirements that they separate their wholesale and retail operations and offer their wholesale services on nondiscriminatory basis to all cellular resellers. PUC in case 93-1758-RC-CSS ruled on complaint by wireless reseller Cellnet alleging Ameritech and AirTouch had provided their retail reseller affiliates with favorable rates and terms that they denied to unaffiliated resellers, allowing affiliates to unfairly undercut Cellnet in retail markets. PUC in 99-page order dismissed companies’ multiple defenses and held them guilty of discriminating against Cellnet. Agency acted after determining it had jurisdiction because case involved rate discriminatory conduct, not rate challenge. PUC ordered companies to cease unlawful conduct, but since this was companies’ first offense it declined to impose any penalties. In another matter, PUC set Feb. 7 hearing to collect public comment on whether customers in Columbus 614 area code preferred geographic split or overlay for code relief. Split plan would put Columbus and its outer suburbs into separate area codes. Current code is projected to run out of numbers in fall 2002.
FCC Comr. Powell “remains the clear front-runner” to be next agency chairman and expects to be tapped this week, House Commerce Committee Chmn. Tauzin (R-La.) told reporters at TechNet lunch Fri. “I talked with him last night,” Tauzin said. “He said he hadn’t heard yet.” Addressing rumors Powell might be holding out for another Bush Administration position, Tauzin assured reporters: “He wants it.”
FCC rejected 5 petitions for reconsideration of modified rules for C- and F-block PCS auction that began Dec. 12. Petitions challenged rules that split C-block spectrum into 10 MHz blocks for 422-license auction. In order (CD Aug 28 p1), Commission reconfigured 30 MHz of C-block spectrum into 2 tiers, with first covering populations of at least 2.5 million and 2nd below that threshold. Two of three 10 MHz blocks in first tier and one of 3 blocks in lower tier are subject to open bids. Others are closed for entrepreneurial bidders. Alpine PCS, National Telephone Cooperative Assn., Northcoast Communications, OPASTCO, Rural Telecommunications Group (RTG) and U.S. Small Business Administration petitioned for reconsideration. On spectrum blocks, agency reiterated finding that “10 MHz is a viable minimum license size.” Order also: (1) Rejected Northcoast request to eliminate tiers and allow open bids only for single 10 MHz C-block license in each market. Northcoast raised concerns it wouldn’t be able to meet business plans to vie competitively for licenses in larger markets. (2) Rejected contentions by Alpine that by eliminating some entrepreneur eligibility restrictions, agency failed to follow statutory objectives, such as avoiding excessive license concentration. Some petitioners pointed to recent news reports in which large carriers said they had enough spectrum. Agency said by doing away with some, but not all, of eligibility restrictions for small business bidders, it balanced as many statutory goals as possible. (3) Denied request by Nextel to put in place bulk bidding procedure. (4) Rejected petitions for Northcoast, OPASTCO and RTG to increase bidding credits in open bidding as well as Alpine request on legislation passed by Congress in Aug. that granted qualifying Alaska Native regional corporations relief from transfer restrictions for small business bidders, as well as from unjust enrichment payment requirements. Legislation had effect of allowing Cook Inlet Region Inc. (CIRI) to transfer license to large carrier without paying unjust enrichment penalties. Alpine wanted agency to give same relief to entrepreneur bidders. If FCC were to reject that request, Alpine wanted it to amend auction rules to exclude CIRI from PCS auction altogether. Agency denied request, saying: “The relief accorded CIRI under the statute was specifically authorized by Congress and narrowly tailored.” Congress could have chosen to broaden relief to all similar bidders, but instead created exemption that applied to CIRI, order said.
FCC Wireless Bureau denied Pegasus Broadband petition asking Commission to dismiss Northpoint application for violating ex parte rules. Bureau said it would only “admonish” Northpoint to follow rules, which regulate disclosure and documentation, more closely. FCC said Northpoint “committed no significant violation” of ex parte rules.
Nokia will supply and install GSM 900 MHz wireless equipment to expand network of China’s Shanxi Mobile Communications, which plans to increase network capacity by 230,000 subscribers in Taiyuan City, terms not announced. Nokia said agreement was reached with one of its joint ventures in China, Beijing Nokia Hangxing Telecommunications Systems.
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.
Ind. Utility Regulatory Commission (IURC) opened formal investigation into Ameritech’s massive service problems last year, as had it promised to do earlier this month when informal negotiations on expanded customer compensation for outages collapsed. IURC Exec. Dir. Michael Leppert said agency’s previous informal approach “has run its course. It’s time we take the next logical step” to examine Ameritech’s customer service and network management practices, and how they contributed to last year’s service debacle. Up to now, IURC has concentrated its efforts on getting quick improvement in Ameritech phone service rather then seeking reasons for mess. IURC said Ameritech service performance, although improved, still hadn’t met state’s service quality standards, and said investigation was necessary to build case it could use to petition state courts for fines against company. Ameritech spokesman said company wasn’t surprised by probe, but stood by its efforts to improve service and its commitment going forward to keep up its service quality. Consumer watchdog Ind. Citizens Action Coalition applauded IURC action but predicted Ameritech would be “very formidable adversary” as investigation proceeded. IURC will set procedural schedule in next few weeks.
Globalstar stock dropped another 19% to 97 cents following announcement Tues. that company had stopped making debt payments (CD Jan 17 p4). Loral stock was unchanged Fri. at $4.31. Meanwhile, First Eagle Fund of America said it fell below 2000 projections because of subpar year at Loral and Globalstar. Loral plummeted more than 85% because of concern about company’s 40% stake in Globalstar.