U.S. Trade Representative (USTR) Charlene Barshefsky said U.S. and European Union (EU) had put in place agreements designed to reduce barriers to nearly $30 billion in annual transatlantic trade of telecom and electronic products. Mutual recognition agreement sectoral annexes eliminate duplicative product testing requirements. USTR said that under agreement, EU regulators would recognize certificates issued by designated labs in U.S. that equipment they had evaluated met EU requirements, and vice versa. USTR said that will allow U.S. manufacturers to export products to EU without additional certifications and tests. “This landmark step facilitates electronic trade in many telecommunications and information technology products by improving market access, reducing costs and shortening the time required to market certain U.S. products in the EU,” Barshefsky said. Mutual recognition agreement annexes on telecom equipment cover terminal equipment, such as radio transmitters and information technology equipment. Annex on electromagnetic compatibility covers equipment subject to EU and U.S. radio interference and compatibility requirements.
Broadcasters are averaging 4 hours of children’s TV programming per week, one more than FCC’s 3-hour guideline, FCC Chmn. Kennard said in letter to Capitol Hill Thurs. Letter accompanied FCC reports on children’s TV rules and on DTV public interest standard. On kidvid, Kennard said more still needed to be done, including limiting preemption of children’s programming and publicizing availability of shows. On DTV public interest, report listed 11 possible ways for broadcasters to “fulfill their statutory duty to serve the public interest,” Kennard said. He said principles should “provide useful guidance” for congressional discussions with broadcasters. Principles cited in report include airing local issue-oriented programs, carrying PSAs, “enriching children,” protecting children from harmful programs, “enhancing democracy,” providing disaster and emergency information, protecting consumer privacy, making programming accessible to disabled, using technology to enhance service.
Demand for applications will drive growth for public network and enterprise markets, Telecom Industry Assn. (TIA) said as it released its 2001 MultiMedia Telecommunications Market Review and Forecast. Enterprise spending on equipment and software reached $92.1 billion in 2000, and network service providers spending hit $53.2 billion, report said, and despite significant factors creating downward pressure, “we believe there are stronger factors creating upward pressure on spending.”
Telecom Business Notes: (1) Qwest won contract worth more than $100 million to provide network capacity to Cable & Wireless. (2) Viatel said it realigned its operations to focus on high- growth businesses and would stop providing consumer voice services in countries “that do not meet long-term corporate objectives.” Streamlining will lead to staff reduction of about 30%. (3) Time Warner Telecom plans IPO of 4.4 million shares of its Class A common stock. Proceeds will be used to repay portion of $700 million senior unsecured bridge loan that Time Warner Telecom used to finance purchase of GST Telecom’s assets.
NTIA reported mixed results Thurs. in first round of ultra- wideband (UWB) tests in non-GPS band, pointing to “potential” to operate that wireless technology in 3-6 GHz range without interference. “The test results today show a great deal of promise between 3 and 6 GHz,” NTIA Dir. Gregory Rohde said at news briefing. But tests also found “difficulties” with interference in bands below 3 GHz, occupied by systems such as airport surveillance radar and federal govt. systems. Rohde said results set stage in coming weeks for negotiations between FCC and NTIA over final rule on UWB operation in GPS and non-GPS bands. Difficulties in bands below 3 GHz at certain distances between UWB devices and other systems could be mitigated through measures such as requiring devices in certain cases to operate indoors, Rohde said. “It’s not that a door has been closed here,” he said.
As FCC Chmn. Kennard departs today, he leaves legacy as extremely decent man who might have been more effective if he were more of a politician, industry officials told us. “He is a prince of a man, honorable, honest,” said one telecom lobbyist. “But I don’t believe he’s a politician at heart and it’s hard for that kind of person to survive the political cauldron in Washington.” No one we talked with disputed Kennard’s honorable nature. Even his ideological opposite, Comr. Furchtgott-Roth, said Thurs. that he viewed Kennard’s departure to make way for Republican as “somewhat bittersweet” because Kennard was “one of the finest, most decent individuals I've ever met.”
Nortel said it lost $1.41 billion in 4th quarter, compared with $172 million income year ago. Revenue during period rose 34% to $8.8 billion. Company said it had record full-year results with revenue up 42%, although net loss for year climbed to $3.47 billion from $351 million last year. Nortel officials said they were “extremely pleased” by 4th-quarter results because of strong growth in optical Internet, wireless Internet and core IP networking areas.
Utah Gov. Mike Leavitt (R) called for collaboration between state’s telecom carriers and its “professional communities” to encourage high-tech companies to locate in state. In his “State of the State” address, he also called for coordinated efforts to bring all of state’s communities into “New Economy” by expanding high-speed telecom services in rural areas, announced formation of new “Utah/Silicon Valley Alliance” to acquaint new entrepreneurial startups with advantages of locating in Utah, called for state- funded bonuses of up to $20,000 for teachers of advanced technology and math skills who commit to staying at least 4 years in Utah high schools. He also announced associated life-style- oriented initiatives addressing education, housing, water and open space.
Cost of wireless phone service dropped average of 6.9% last year in 25 metro areas, Econ One research group said. Subscribers to 600 min. per month plans saw deepest average price reductions, 10.1%, from $66.63 to $59.91, company said. Overall average in 25 cities was calculated across plans with 30, 150, 300 and 600 min. of use. Average price for all such plans dipped to $39.60 last month from $42.53 in Dec. 1999. St. Louis, Dallas and Kansas City saw biggest price declines -- 18.2%, 15.6% and 14.4%, respectively, Econ One said. Sacramento price plans increased 4%. Although average prices dropped last year, 19 of 25 cities surveyed in Dec. saw increases in monthly service plans. It said “aggressive” handset pricing could explain why services prices didn’t drop more in Dec..
Cingular Wireless and VoiceStream filed applications with FCC for approval of proposed license exchange. Subsidiary of Cingular would exchange PCS spectrum in L.A. and San Francisco for spectrum held by VoiceStream subsidiaries in N.Y. and St. Louis. VoiceStream also proposed giving Cingular license in Detroit now held by Cook Inlet/VoiceStream GSM in exchange for Cingular spectrum in San Francisco. To carry out exchange, some of licenses would be disaggregated or partitioned. Comments are due at FCC Feb. 20, replies March 2.