Interim committee of W.Va. legislature, studying ways to regulate telemarketers, filed report that recommended no legislation for 2001 session. Group had considered restrictive measures such as state “no-call” list, but concluded existing laws were sufficient to address any telemarketing problems. Several state legislators said they planned to disregard panel’s report and would be introducing telemarketing bills this session.
Motorola will provide 3rd-generation wireless network upgrades for Sprint PCS under infrastructure agreement, terms not disclosed. Motorola said it would provide CDMA equipment with interoperability specifications and cdma2000 1x high-speed packet data “in a significant portion” of Sprint wireless markets. It said upgrade orders cover Sprint operations in Charlotte, Chattanooga, Chicago, Cincinnati, Cleveland, Columbus, O., Greensboro, N.C., Honolulu, Knoxville, Norfolk, Raleigh, Richmond. Separately, Motorola said it completed 3G calls in Sprint PCS lab in Kansas City as part of tests before commercial deployment of next-generation wireless systems. Most recent trial involved Motorola’s 4-carrier base station that uses interoperability standard to connect to packet data serving node.
Walt Disney Internet Group said its enhanced-TV telecast of last Wed.’s FedEx Orange Bowl on ABC attracted 122,000 unique viewers to TV-Internet event. Viewers, who logged on to their PCs for specially synchronized Web content while watching football game on TV sets, spent average of 40 min. apiece on enhanced TV features, Disney said. Broadcaster said usage rose as much as 39% after each promo on ABC.
Metromedia Fiber Network obtained $350 million credit facility from Citicorp USA and said it expected strong growth year. Company plans deployment of 3.6 million fiber miles by end of 2004. It said estimated revenue for 2000 was $184.6 million, up $69.7 million from 1999.
Rep. Oxley (R-O.) may have lost his bid to lead Commerce Committee, but he still could have influence on telecom policy. He introduced bill (HR-235) to require FCC to eliminate its restrictions on newspaper-broadcast cross-ownership. Meanwhile, Rep. King (R-N.Y.) offered bill that would authorize FTC to issue new regulations on telemarketers. He has 9 initial co-sponsors, including Oxley. Also, two more lawmakers quickly brought back bills from last year: (1) Rep. Portman (R-O.) reintroduced his bill to repeal 3% telephone excise tax (now HR-236), with 30 initial co-sponsors. Bill passed House by 420-2 vote last year but never got vote in Senate. It then was folded into appropriations legislation that was vetoed by President Clinton. Bill again will go through Ways & Means Committee. It’s expected to get more favorable reception from incoming President Bush. (2) Rep. Holt (D-N.J.) reintroduced his measure (now HR-113) to prevent spamming on wireless devices. Introduced late in last session, Holt’s bill never got serious consideration.
Ind. Utility Regulatory Commission (IURC) will hold hearing Jan. 16 on Ameritech’s proposed $1 million settlement for continuation of price cap regulation. Under agreement with Office of Utility Consumer Counsel, Ind. Intelenet Commission and AT&T, Ameritech would invest $832 million in next several years to improve its infrastructure, including replacement of all analog electronic network switches with digital, and upgrading substantial portion of central offices to provide high-speed Internet access. Agreement also would require Ameritech next fall to cut residential rates $62 million and business rates $106 million. Separately, bill introduced in Ind. Senate would give IURC legal jurisdiction over mergers of parent holding companies that own telephone, energy and other utilities operating in state. Legislation by state Sen. Timothy Lanane (D-Indianapolis) addresses 1999 Ind. Supreme Court ruling that IURC lacked legal authority over SBC-Ameritech and Bell Atlantic-GTE mergers.
As FCC readies long-anticipated inquiry into unifying carrier compensation methods, telecom industry appears less than united on how -- or even whether -- it should be done. FCC official said at news briefing Mon. that if Commission approved Notice of Inquiry proposed by Common Carrier Bureau, it would open proceeding that probably would take “several years.” Some industry representatives have urged agency to begin proceeding, saying it doesn’t make sense economically to have so many disparate intercarrier compensation methods. But others question value of rationalizing those different plans such as access charges, reciprocal compensation and various forms of wireless interconnection charges.
Vodafone is acquiring 34.5% stake in Mexican wireless carrier Grupo Iusacell for $973.4 million in shares purchased from Peralta Group. Iusacell is 2nd largest wireless operator in Mexico with 1.5 million subscribers. Vodafone is joining Iusacell investor Verizon, which already has 37% stake in carrier. Vodafone and Verizon run largest U.S. wireless operator through Verizon Wireless venture. Vodafone Pres. Americas Asia William Keever said Iusacell transaction marked carrier’s entry into Latin American wireless market. “With only 2.2% company subscriber penetration in its 4 cellular regions, Iusacell represents an extraordinary growth opportunity for Vodafone,” he said. Vodafone is paying for Iusacell shares in cash in deal that is expected to close in this quarter.
FCC Chmn. Kennard will announce his resignation as soon as Commission votes on AOL takeover of Time Warner, which is expected this week, Commission source told us. Kennard’s term expires in June but he was expected to leave once George Bush was sworn in as President Jan. 20. It will be up to Administration to decide whom to name as interim FCC chairman until permanent replacement for Kennard is appointed. FCC Comr. Powell is expected to be tapped but he hasn’t confirmed that. Source didn’t say when Kennard actually was leaving or reveal where he planned to work once he left. He moved to Commission from Verner, Liipfert, Bernhard, McPherson & Hand, where he was partner.
FCC, CPB and others that live off spending bills have new House Appropriations Committee subcommittee chairmen to lobby. House Republicans named Rep. Wolf (Va.) to head Commerce-Justice panel, replacing Rep. Rogers (R-Ky.), who moves to chmn. of Transportation Subcommittee. Rep. Regula (R-O.) takes spot of retired former Labor-HHS Chmn. Porter (R-Ill.). Among others, Rep. Taylor (R-N.C.) takes Legislative Branch panel and Rep. Istook (R-Okla.) gets Treasury-Postal. Other key committees hadn’t named subcommittee heads yet. On House Judiciary panel, it’s expected that Rep. Coble (R-N.C.) will keep his Courts and Intellectual Property post. Rep. Gekas (R-Pa.) reportedly is angling for Crime subcommittee vacated by former Rep. Bill McCollum (R-Fla.), and Rep. Smith (R-Tex.) is seeking Constitution panel once held by former Rep. Canady (R-Fla.). Senate Commerce Committee is likely to stay at 20 members, now split 10-10 instead of 11-9, Committee source said. That would allow addition of 2 Republicans and 2 Democrats, not accounting for any defections. We're told Senate Majority Leader (for another 2 weeks) Daschle (D-N.D.) could appoint Democratic slate as early as Thurs. Sources said Sen. Edwards (D-N.C.) is almost certain to be on it. Edwards introduced Internet privacy legislation last year, and N.C. has considerable high-tech constituency, so Edwards would be expected to follow Internet rules closely. Sources were less certain about other Democratic opening, although speculation has centered on newly elected Sen. Cantwell (D-Wash.), who defeated Commerce Committee member Slade Gorton (R-Wash.) and represents one of most technology-intensive states.