CTAM and Cablevision called for entries for 18th Annual Mark Awards competition with Feb. 9 deadline. Awards recognize marketing and advertising excellence in cable and telecom.
Cellular Telecommunications & Internet Assn. (CTIA) urged FCC to continue to forego regulation of wireless intercarrier roaming, contending automatic roaming rule isn’t needed. Comments are in response to notice of proposed rulemaking (NPRM) in which FCC examines whether mandatory automatic roaming rule remains unnecessary. NPRM said agency wouldn’t mandate automatic roaming unless market forces along couldn’t ensure availability of competitive roaming services. “The Commission’s current roaming requirements have proven sufficient to foster cellular and PCS roaming services without imposing undue costs” on industry, CTIA said. National Telephone Cooperative Assn. (NTCA) didn’t ask FCC to implement mandatory automatic roaming requirement, but asked it to continue to monitor situation to “ensure that roaming agreements do not discriminate against small and rural CMRS providers.” NTCA said market appears to be working “and automatic roaming agreements are generally available where it is technically and economically feasible.” While rural carriers don’t have trouble striking roaming deals, sometimes terms are “unjust,” group said. In such cases, NTCA said, “the rural carrier pays more for the privilege to roam in the urban territory than the large carrier pays to roam in the rural territory.” Rural Ala. carrier Corr Wireless Communications went step further, saying market is “clearly not working on its own to prevent abuses of power.” “Small independent carriers do not have the economic clout to bargain with large carriers who have their own wide-area footprints for automatic roaming,” Corr wrote, citing alleged problems with Cingular Wireless. “This permits large carriers to engage in the very sort of bullying abuses which led” to regulatory curbs for wireline competitors, Corr said. Corr is asking agency to adopt automatic roaming rule that tracks basic interconnection obligations of common carriers under Telecom Act. Several commenters cited concerns about wireless consolidation, which they said creates less incentive for larger competitors to strike low priced roaming pacts.
Michael Brouder, ex-WBZL Miami, appointed dir.-creative services, WGN Cable, Chicago… Ronald Walter promoted to vp-govt. & cable relations, N. Y. Times Bcst. Group… Kathy Payne promoted to dir. of programming, Cox Communications… Bob Walker, ex-KQMB Salt Lake City, becomes program director, WKTI Milwaukee… Dave Wampler promoted to dir. of finance-central and eastern regions, CableRep Advertising… Philip Bouchard, ex-ThinkLink, appointed CFO-COO, Chapter 2… Bob Collet, ex-Teleglobe, named pres., Velocita… Jack Reily, ex-Broadview, appointed exec. vp-corporate development, Efficient Networks… Mona Klausing, ex-Novatel, named dir.-product mktg., Invertix… Craig Young, AT&T Canada vice chmn. and dir., joins board of Global Metro Networks… Joseph Armstrong, ex-State Of The Art Inc., appointed CFO, Sorrento Networks… Davis Masten, co-founder, Cheskin Research, elected to Truste board… Minoru Nakamura, ex-NTT PC Communications, appointed pres., AOL Japan… Alan Amico promoted to CPO, PeopleFirst.com… Marc Randall advanced to vp- engineering, Force10 Networks… Lance Simmens, ex-Small Business Administration, appointed dir.-govt. relations, Screen Actors Guild… Promoted at 20th Century Fox: Ted Gagliano to pres.- postproduction, Joe Hartwick to pres.-physical production… Travis Rutherford, ex-Dreamworks and Disney, appointed senior vp, MGM Consumer Products and Interactive Divs.
AT&T shares closed at $22.50, up 12.15% after news that it’s stock was upgraded to strong buy by Morgan Stanley from neutral in report issued Tues. Morgan Stanley, saying it saw better times ahead for AT&T, established 12-month target price of $35 for company, saying stock now was worth $35-$40 per share after falling 66% in 2000, with AT&T Wireless continuing to show strong growth. AT&T cable prospects also were seen as positive. Morgan Stanley remained cautious on long distance business, figuring valuation at zero at current stock price despite generating estimated $15 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) this year, citing company’s debt load of $60 billion. Brokerage said break-up of company would act as performance catalyst over next several months. It also said plan to distribute rest of AT&T Wireless to shareholders plus aggressive asset disposal program should prove beneficial. While acknowledging AT&T’s “challenging” credit position, Morgan Stanley identified its steps to improve situation such as raising nearly $10 billion from NTT DoCoMo, completing $25 billion debt facility, cutting dividend 83%. It said outlook for 4th quarter foresaw AT&T Wireless “looking good,” adding 850,000 subscribers and generating $2.596 billion in revenue, up 38.2% from a year ago. Beyond 4th quarter, broadband IPO outlook still was seen as problem, with regulatory hurdles to overcome and improvement needed in operating and financial metrics. Cable revenue was expected to grow 9-9.5% on pro forma basis in quarter and 10.5-11% in year, including Comcast swap. By end of year, Morgan Stanley said it expected AT&T Broadband digital penetration of 18.5%, largest digital footprint in U.S., with 1.15 million high-speed data subscribers, 550,000-570,000 residential telephony customers and almost 10% penetration, with revenue of $70 million anticipated. AT&T Broadband capital expenditure this year is expected to be robust. AT&T is to release 4th quarter earnings in week of Jan. 29.
ICO-Teledesic Global Ltd. received FCC authority to transfer control of license held by predecessor Teledesic to construct, launch and operate nongeostationary orbit Fixed Satellite Service satellites. ICO also received exemption from space station “cutoff rule” that will allow it to continue prosecuting its pending letter of intent to access 2 GHz Mobile Satellite Service frequency bands. Commission said decision would permit completion of planned merger of Teledesic and ICO into single organizational structure and would serve public interest by facilitating rapid deployment and competition for broadband services. FCC gave companies 60 days to complete transaction.
Excite@Home said it met its year-end subscriber target, closing 2000 with 2.95 million high-speed data customers worldwide, up from 2.31 million at close of 3rd quarter. Company said it grew more than 25% in 4th quarter, thanks partly to introduction of its QuickStart Kit self-installation in RadioShack stores in several major Comcast markets. Excite@Home said it plans to expand its retail presence by hundreds of stores this year, extending its QuickStart Kit program to AT&T and Cox territories as well. Separately, Excite@Home said it had withdrawn from its earlier deal to buy online games company Pogo.com for undisclosed price. Company, which didn’t give reason for pulling out of agreement, said it will retain its 10% stake in Pogo and continue to offer Pogo’s online games to subscribers.
AT&T and Insight Communications said they closed on their previously announced deal to add 530,000 cable subscribers to their Insight Midwest joint venture managed by Insight. Under agreement, AT&T is contributing systems in Ill. with 250,000 subscribers, while Insight is adding systems in Ga., Ill., Ind. and Ohio with 280,000 customers. Deal expands Insight Midwest’s total reach to 1.4 million cable subscribers, almost entirely in Ill., Ind., Ohio and Ky. In conjunction with transaction, Insight said it closed on new $1.75 billion credit facility to finance expanded venture.
Cablevision Systems said it aims to install up to 500,000 Sony advanced digital cable boxes in subscribers’ homes this year, starting in June. MSO, which plans to take 3-1/2 years to deploy advanced digital boxes throughout its large N.Y.C. area franchise, said it also intends to start offering IP telephony through its digital set-tops later this year. In addition, Cablevision said it added 100,000 high-speed data customers in 4th quarter, closing 2000 with 239,000 cable-modem subscribers, or 12% of homes marketed. Separately, Cablevision and AT&T completed swap of cable systems in N.Y.C. and Boston areas. As part of trade, AT&T received systems serving 358,000 customers in Boston and eastern Mass., boosting its Boston market cluster to nearly 2 million subscribers and 3.5 million homes passed. In return, Cablevision gained systems in northern N.Y. suburbs serving 130,000 subscribers, as well as $870 million in AT&T stock and about $300 million in cash. With deal, Cablevision’s N.Y. cluster now serves about 3 million homes and passes more than 4 million.
As expected, satellite launch quota limiting Russian Proton flights ended with close of 2000. U.S.-Russian Launch Trade Agreement signed Sept. 1993 allowed unlimited number of flights on rocket. It originally allowed 9 western geosynchronous transfer orbit (GTO) satellite launches per year until number increased to 16 in 1996, then 20 in 1999, but provided for agreement to expire at end of 2000 unless govts. renewed quotas. After brief posturing by Congress, U.S. followed through with original intent of allowing quota to die at expiration date.
Tough luck for Arianespace Flight 137 continued Jan. 8 as launch of Eurasiasat 1 payload from Kourou was delayed 3rd time, this time by weather -- wind was determined to be unsafe at coastline and at altitude. Arianespace prepared for possible launch after our deadline Jan. 10. First scheduled launch Dec. 8 was delayed for mechanical reasons, rescheduled to Dec. 11 for additional verifications, then to Jan. 8.