Cox Communications has begun its first trial of broadband home security service in Las Vegas, using its high-speed cable lines and technology supplied by Security Broadband Corp. Cox said it hoped trial, which will test transmission of audio, video and alarm signals over cable plant, would lead to commercial product for residential and small-business cable subscribers. Security Broadband, backed by Adelphia, Charter, Comcast, Cox and other MSOs, said it aimed to introduce commercial service to consumers later this year.
Moody’s assigned B3 rating to XO Communications’ proposed $450 million convertible subordinated notes to “reflect the relatively early development stage of the company with positive cash flow generation… still likely to be approximately 1 to 2 years away.”
As FCC continued to weigh AOL’s pending purchase of Time Warner (TW) Wed., consumer groups and smaller ISPs pressed Commission to impose instant messaging (IM) service interoperability and tighter cable open access conditions on merged company. Moves came as one-year anniversary of AOL-TW deal announcement passed without expected merger approval by Commission, which has been grappling with possible additional conditions since FTC okayed deal Dec. 14. While Republican Comrs. Powell and Furchtgott-Roth reportedly have voted to approve merger without additional conditions, outgoing Chmn. Kennard and Democrat Comrs. Ness and Tristani still were trying to craft compromise on IM issue that would set some requirements. In ex parte presentations earlier this week, Consumers Union and Media Access Project urged agency staffers to back interoperability standards for IM services. They argued that reported Cable Bureau staff proposal to force AOL-TW to open its high-speed cable lines to 2nd, unaffiliated IM service was “of limited utility.” On open access issue, consumer groups called on FCC to mandate that AOL-TW provide access to smaller local and regional ISPs as well as such larger national ones as EarthLink. They said proposed requirement would advance “Commission’s public interest objectives of diversity and localism.” Group of smaller ISPs submitted proposed merger condition to FCC Tues. that would require AOL-TW to “enter into a contract with at least one local and one regional ISP in each franchise area in which cable modem service is made available.” ISP group also called on Commission to make AOL-TW open its cable lines to business-oriented services provided by independent ISPs.
Bidding in FCC’s C- and F-block PCS auction rose to $14.57 billion Wed., vs. $14.2 billion Tues. Salmon PCS, designated entity with Cingular Wireless investment bid $3.06 billion, followed by AT&T Wireless-backed Alaska Native Wireless with $2.42 billion. Competition remains strong for 3 N.Y.C. licenses, all of which now have surpassed $1 billion mark. In 43rd round, Verizon Wireless bid $1.42 billion for one license there, Salmon PCS $1.13 billion for another and Alaska Native Wireless $1.04 billion for 3rd. Other high bidders in auction of 422 licenses that began Dec. 12 include DCC PCS with $966.4 million, Cook Inlet with $486.8 million, VoiceStream with $385.9 million, Leap Wireless with $336.8 million. Of top 15 bidders, 13 are designated entities, with Verizon Wireless and VoiceStream representing exceptions. Next highest bid for single license after N.Y.C. is $519.7 million for L.A. license by DCC PCS, subsidiary of Dobson Communications.
News Corp. Chmn. Rupert Murdoch is trying to restore relations with Chinese officials by organizing media summit meeting in Shanghai later this year. He wants summit to coincide with gathering of regional leaders for Asia Pacific Economic Cooperation forum. Murdoch’s goal is to offer his Star TV system throughout country.
N.Y. PSC approved rate restructuring plan for Citizens Telecom that will make rates uniform in all of carrier’s service areas across state by 2005. New rate structure will replace hodgepodge of rates from company’s acquisitions of small telcos over last 20 years that led to situations where customers were charged substantially different rates for similar services without cost justification for difference. Plan adopted Tues. provides for phasing in new rates over 4 years, starting in 2002, with annual increases limited to $1 monthly for residential customers and $3 per line monthly for business customers. Customers receiving rate cuts under restructuring will see them implemented this month. New rates also will cover Citizens’ revenue losses from expiration in near future of long-term intercarrier compensation agreements with Verizon for extended local calling. Plan also eliminates Citizens’ rural zone charges to customers beyond base rate areas of its local exchanges and makes Citizens’ local calling areas similar in size to those of Verizon. Citizens is 4th largest incumbent in N.Y., with 307,000 lines in 126 exchanges scattered across state.
Research firm pulver.com forecast that wireless revenue would top local wireline revenue by 2003, based on recent price reductions by mobile providers. “The wireless industry has erased the twentyfold wireline price advantage that existed in 1984, completely changing the business case for who represents a potential wireless customer,” pulver.com CEO Jeff Pulver said. Report said if 25% of residential wireline customers convert to wireless, industry would gain 26 million subscribers, representing $14 billion potential revenue increase. That would give wireless industry revenue of $91 billion in 2003, compared with $90 million for local wireline industry, pulver.com projected.
Veil Interactive Technologies said it received patent for inserting data into visible portion of broadcast signal. It said technology would allow broadcast signal to become “universal platform” to allow interacting with TV through broadcast signal. Technology uses full-video-image data stream, rather than just vertical blanking interval, allowing up to 6 Mbps to be transmitted, Veil said.
Consumer Electronics Retailers Coalition (CERC) urged FCC to reject NCTA and Time Warner petitions for reconsideration of agency’s cable-ready labels for new DTV sets (CD Nov 29 p5). Signaling no letup in battle between consumer electronics and cable industries over DTV set labels and other DTV-cable compatibility issues, CERC argued that real problem was OpenCable specifications for advanced digital cable set-top boxes and integrated TV sets, not set labels adopted by Commission. In 10- page filing with FCC, CERC criticized cable industry for not supporting digital cable boxes “capable of competition with the MSO-distributed products now on the market.” Group said it was “cable industry compliance, not the labels, that needs to be reformed.” CERC also said NCTA was seeking to “turn this labeling proceeding into a substantive mandate that all OpenCable-reliant DTV receivers must include the ‘1394’ interface” favored by cable and broadcasting industries for digital sets. CERC said cable industry’s own focus group studies showed that “the labels previously recommended by NCTA are… not good enough.”
U.S. Appeals Court, D.C., remanded low-power FM (LPFM) rules to FCC to give Commission time to implement latest legislation, responding to NAB petition (CD Dec 28 p4). Court said parties should report to court within 21 days after FCC action, to allow court to decide whether more action was needed. Court also said FCC must implement character qualification provisions of Radio Bcstg. Preservation Act.