RadarSat International of British Columbia said Tues. it had been officially approved as U.S. Geological Survey business partner. Partnership will allow RSI to distribute commercially N. American and international data from Landsat 7 satellite archived at Eros Data Center.
Citing U.S. World Trade Organization (WTO) promises, former Commerce Secy. and U.S. Trade Representative Mickey Kantor urged FCC to approve license transfers for proposed $34-billion VoiceStream-Deutsche Telekom merger. VoiceStream submitted Kantor statement before close of comment period on merger Mon. “This FCC proceeding is about more than the acquisition of a U.S. common carrier by a foreign company,” he said. “It is a test of the United States’ compliance with binding international legal obligations which were negotiated and entered into in good faith.” In acting on VoiceStream-DT application, FCC must move in way that’s consistent with U.S. obligations under WTO Basic Telecom Agreement (BTA), he said. “Failure to do so could invite initiation of a WTO dispute settlement action against the U.S. government and would establish for other WTO members an unwelcome precedent of noncompliance,” Kantor said. He warned that scope of sanctions under General Agreement on Trade in Services (GATS) wasn’t limited to sector in which violation was found. That means, Kantor said, that if U.S. were found to have violated GATS, “it could be liable for trade sanctions in any sector.” Also, if U.S. were to act in way that indicated backtracking on trade commitments, it could damage its negotiating power in current talks, such as GATS services negotiations, he said. FCC shouldn’t restrict access to U.S. telecom market “based on market conditions in other countries that do not affect competition in the United States,” he said. Binding U.S. commitments under BTA don’t hinge on other countries’ implementation of their own duties, he said. In other reply comments, Organization for International Investment rebutted concerns raised by Sen. Hollings (D-S.C.) and DT competitors such as Global TeleSystems and Novaxess. Hollings, ranking Democrat on Senate Commerce Committee, last month had renewed his call to FCC to reject application, underlining his opposition to telecom assets bought by companies with majority foreign govt. investment (CD Dec 18 p6). In other comments, Siemens advocated approval of merger, saying it would increase U.S. telephony competition. Transaction still awaits approvals of Dept. of Justice, FCC and Committee on Foreign Interests in U.S.
In response to FCC’s latest video competition report (CD Jan 9 p5), NCTA said report confirms “irrefutable trend of the last five years” that DBS has emerged as cable’s biggest video rival and “is rapidly becoming a significant competitor in data as well.” NCTA argued that report, which indicated that cable’s dominance of pay TV market is slipping because of DBS inroads, also shows why no new regulation of cable industry is needed. “Competition from satellite, wireline overbuilders and wireless operators is benefitting consumers,” group said. “It has made cable rise to the challenge by providing digital tiers, video-on- demand and data and phone services. This competition is reason enough to reject government micro-management of these communications markets.”
Proposal by Fixed Wireless Communications Coalition (FWCC) that seeks changes in FCC rules on access to spectrum for satellite services has drawn strong opposition from satellite and cable industries. Satellite Industry Assn. (SIA), Satellite Bcstg. & Communications Assn. (SBCA), World Teleport Assn. (WTA), Aerospace Industries Assn.(AIA) and National Cable TV Assn. (NCTA) filed comments opposing changes. Among things FWCC wants is declaratory ruling on partial band licensing of Earth Stations in Fixed Satellite Service (FSS) that share terrestrial spectrum, routine licensing of 3.7 meter transmit and receive stations on C- band and deployment of geostationary orbit FSS earth stations in share portion of Ka-band. Each of groups said changes wouldn’t be in public interest.
FCC C-block bidding edged up to $14.2 billion Tues. after 39 rounds, with Verizon Wireless solidifying its lead to $6.5 billion. While overall pace of bidding has slowed since auction resumed Jan. 4, Verizon Wireless bids picked up, rising from $5.1 billion in net high bids Mon. AT&T Wireless-backed designated entity Alaska Native Wireless came in 2nd with $2.5 billion, followed by Cingular Wireless-backed Salmon PCS with $1.9 billion. For first time on Tues., 2 N.Y.C. licenses edged up past $1 billion. Previously, Verizon had been bidding $1.17 billion for one license in that market, but it edged up bid for 2nd to $1.27 billion. Alaska Native Wireless is bidding $930.7 million for 3rd license there.
Hughes Electronics said 2 of its subsidiaries, DirecTV and Hughes Network Systems, would start new high-speed satellite Internet service “Powered by DirecPC” as key part of expanding broadband strategy. Company plans to bundle satellite Internet service with DBS and offer it to DirecTV DBS subscribers. Service is expected to begin in this quarter.
DirecTV said it was giving $200 mail-in rebate for new residential customers who purchase system with professional installation Jan. 25-April 11 if they commit to one year of Total Choice premium programming package by April 25.
NetVoice Technologies said it expected positive earnings before interest, taxes, depreciation and amortization (EBITDA) by 3rd quarter and profitability shortly thereafter, making it first IP telephony provider to announce profitability. Pres.-CEO Jeff Rothell cited industry reports of growing trend toward consumer use and acceptance of IP telephony as fundamental foundation of NetVoice’s business strategy. He said plans for year included becoming profitable, growing enterprise segment and continuing to build wireless IP network.
Despite concerns of sales slowdown for wireless equipment, Nokia reported Tues. it had sold more than 128 million phones in 2000, level that it said beat overall market growth. It also reported preliminary estimates of 405 million wireless phone units sold in last year, short of 420 million forecast by rivals such as Ericsson. Still, Nokia said 405 million number marked 45% increase from 1999. In preliminary numbers released before financial results are reported Jan. 30, it also indicated that global wireless subscriber base reached 700 million by year-end, which Nokia said represented international penetration of 12%.
FCC Wireless Bureau denied petitions for reconsideration filed by Alliance for Radio Competition (ARC) and Hugh Taylor on assignment of 900 MHz licenses from Geotek. Last Jan., bureau granted applications for Geotek, which had filed for bankruptcy, to assign licenses to creditors and to assign from creditors to FCI 900, subsidiary of Nextel, licenses not covered by 1995 agreement of Nextel, Motorola, Dept. of Justice. (That consent decree barred Nextel from acquiring 900 MHz licenses in 15 markets.) Bureau also at time accepted FCI request to withdraw applications to assign from creditors to FCI licenses in markets covered by consent decree. ARC had argued that assigning licenses to FCI 900 would decrease competition in dispatch market. Taylor had contended Geotek wasn’t qualified to hold FCC licenses. Bureau concluded that neither ARC nor Taylor had raised new arguments or showed material errors in how decision was made. Order released Tues. reiterated FCC stance that original decision wouldn’t cause competitive harms in affected wireless voice markets.