“Of all the networks, we are situated very nicely… We are in very, very good condition” in case of strike by writers and/or actors, but “I would rather not get into specifics” about steps NBC is taking, Entertainment Co-Chmn. Lloyd Braun told TV critics in Pasadena Fri. “We really don’t want to develop or put on the air any show that we wouldn’t otherwise put on the air if there wasn’t a strike.” Some of that preparation involves reality shows, but fellow Co-Chmn. Stu Blumberg said “it’s not a function of us saying we've got to put so much reality on the air” -- programming staple being used by other networks in strike preparation (CD Jan 11 p3). On sluggish ad environment for all networks, Braun said “we are starting to see signs of improvement, but it has been tough for everybody.” ABC was last of over-air TV networks to appear before critics -- and, unlike others, it didn’t provide any official who could discuss news or other govt. issues under upcoming Bush Administration.
House Telecom Subcommittee Democrats still were sorting out changes in their jurisdiction with Republicans’ decision to split consumer protection and telecom (CD Jan 12 p1), but they seemed not displeased when contacted Fri. “It’s a major change,” Rep. Boucher (D-Va.) told us of GOP’s action. “We've always had consumer protection within the Telecom Subcommittee.” He wouldn’t discuss which subcommittee he would gravitate toward, but conceded that he would be watching moves of Telecom Subcommittee ranking Democrat Markey (Mass.) carefully. Markey’s staff didn’t return calls by our deadline. If he leaves Telecom Subcommittee to be ranking Democrat on full Resources Committee, or if he chooses Consumer Protection panel, Boucher would be next in line for Telecom. If Markey stays, Boucher could be candidate to take ranking slot on Consumer Protection. “Markey’s always been interested in consumer protection issues,” one lobbyist said, and heads Congressional Privacy Caucus. Boucher said that even if he and other leaders on privacy chose Telecom panel, they would remain interested in privacy and still could be driving forces on privacy legislation. Democrats probably won’t organize their membership until later this month, perhaps as late as week of Jan. 30, Boucher said.
There may be “significant merit” in ALTS compromise proposal to curb high CLEC access charges (CD Jan 12 p8), Assn. of Communications Enterprises (ASCENT) said in comments filed Jan. 11. ALTS proposed setting ceilings for access charges as alternative to more drastic mandatory detariffing. ASCENT said it, too, had recommended rate ceilings and while those proposed by ALTS were lower, “they nonetheless appear to constitute a rational compromise between the conflicting interests of LECs and IXCs.”
FCC declined Fri. to preempt Mo. law (HB 620) that prohibits political subdivisions such as municipalities from providing telecom services or facilities, concluding that term “entity” in Sec. 253(a) of Communications Act wasn’t intended to include political subdivisions of state but rather appeared to prohibit restrictions on market entry that apply to independent entities subject to state regulation. Acting on preemption petition filed by Mo. Assn. of Municipal Utilities, City Utilities of Springfield and others, Commission said that if municipally owned utility sought to provide telecom service or facility as independent corporate entity that was separate from state, “we could reach a different result under Section 252(a).” Mo. municipalities argued that even if Commission were correct in concluding that Congress didn’t clearly intend to include municipalities that didn’t own and operate electric utilities within scope of Sec. 253, Congress did clearly intend term “any entity” to apply to power companies owned by municipalities. As it found in Texas Preemption Order, FCC said, “any entity” was not intended to include political subdivisions of state. Commission urged states to refrain from enacting absolute prohibitions on ability of municipal entities to provide telecom service. Municipally owned utilities have potential to become major competitors in telecom industry, it said, and their entry could further goal of Act to bring benefits of competition to all Americans, particularly those living in small or rural communities. As for concerns of taxpayer protection from economic risks of entry and possible regulatory bias that municipalities’ entry raise, Commission said such issues could be dealt with successfully through measures that were much less restrictive than outright ban on entry. For instance, there could be nondiscrimination requirements that require municipal entity to operate in manner that’s separate from municipality, “thereby permitting consumers to reap the benefits of increased competition.” FCC also rejected municipalities’ contention that even if municipally owned utilities were political subdivisions of state, legislative history of Sec. 253 (a) demonstrated that Congress clearly intended “any entity” to cover municipal electric utilities. “Other than indicating that municipal energy utilities may make their facilities available to carriers, the legislative history that the petitioners cite does not distinguish between publicly owned and privately owned utilities,” Commission said. In joint statement, FCC Chmn. Kennard and Comr. Tristani said they voted reluctantly to preempt petition because they believed “HB- 620 effectively eliminates municipally owned utilities as a promising class of local communications competitors in Missouri.” Commission was constrained in authority to preempt by decision by U.S. Appeals Court, D.C., City of Abilene, and U.S. Supreme Court’s decision in Gregory v. Ashcroft, they said. Referring to letters from many members of Congress that said it was intent of Congress when it enacted Sec. 253 to enable any entity, regardless of form of ownership or control, to enter telecom market, they urged Congress to consider amending language in section to clearly address municipally owned entities. In separate statement, Comr. Ness urges states to adopt less restrictive measures, such as separation or nondiscriminatory requirements, to protect utility ratepayers or address any perceived unfair competitive advantage.
Correction: The Republican departing from the Senate Commerce Committee (CD Jan 12 p2) was Sen. Frist (R-Tenn.), not Sen. Snowe (R-Me.).
Latest DTV station on air is WTLV-DT (Ch. 12, NBC) Jacksonville, which carries DTV on Ch. 13. Station is 173rd to carry DTV, NAB said.
Crown Castle International announced IPO of 12 million shares of common stock at $26.25 per share to raise $315 million. Company said offering was expected to close Jan. 17. Crown Castle said it planned to use proceeds for “general corporate purposes” such as capital spending and for acquiring shared communications infrastructure.
Ohio PUC ordered state’s 4 largest incumbent telcos to reduce their intrastate access charges to interstate levels set by FCC July 1 when it implemented CALLS Coalition’s access and universal service reform plan for large telcos. PUC directed Ameritech, Cincinnati Bell, Sprint and Verizon, which put interstate CALLS into effect July 1, to file new access tariffs by end of Jan. Agency ordered interexchange carriers to follow promptly with their plans for passing their access savings across the board to their customers. In past, Ohio set intrastate access charges by mirroring structure and rates of interstate access charges, but PUC in June 30 decision halted mirroring until it had chance to review impacts on state if access rate reductions required by CALLS plan were put into effect on intrastate basis. PUC concluded that resumption of interstate access mirroring rather than company-by-company PUC access charge reviews would be most sensible way to promote policy goals of lower interexchange rates, elimination of implicit subsidies, efficient competition and investment and regulatory certainty for telecom industry. For state’s smaller incumbents, PUC said it wouldn’t change anything until FCC decided on interstate access and universal service reforms pending for rural telcos. For CLECs, PUC said their access charges would remain capped at their present levels, with cuts permitted. Increases, however, will require full cost support.
Pat Patton, ex-KMBC and KCWE Kansas City, named program dir., KRON San Francisco… Mercedes Walton, ex-AT&T, appointed pres.- COO, Applied Digital Solutions… Alex Best, ex-Cox Communications, joins board of Concurrent Computer… Jeff Rich, pres.-CEO, Affiliated Computer Services, elected to Pegasus Solutions board… Appointments at Pingtel: Dan Petrie, ex- Logica, to chief architect; Jonathan Ross, ex-Artisoft, to vp- sales; Mike Storella, ex-FreightQuest, to vp-customer service… Chris Clough, vp-corporate communications, leaves Network Solutions.
NTL says its 4th quarter was record-breaking in subscriber additions, with 86,800 new customers joining during period. NTL also said “original” franchises had their 20th consecutive quarter of increased customer penetration, to 50.7%, and Teesside franchise continued to lead U.K. operations with 66.9% household penetration.