NCube Corp. filed patent infringement suit against SeaChange International Mon., charging that latter’s video-on-demand (VoD) products violated one of nCube’s interactive TV patents. NCube said it was seeking permanent injunction against SeaChange’s shipping its allegedly infringing products. In earlier court battle on other patents, Del. jury ruled in SeaChange’s favor in Sept., but nCube is challenging that decision.
Bidding in FCC’s record-setting C- and F-block auction Mon. continued to move at more languorous pace, reaching $13.52 billion. AT&T Wireless became latest major carrier to quit bidding Mon. after 35 rounds, although carrier still was involved in auction through Alaska Native Wireless. AT&T has 39% equity in that designated entity but noncontrolling interest. Other carriers that already have departed include Alltel, Nextel, Sprint PCS. Verizon Wireless had somewhat smaller lead of $5.1 billion in net high bids. Cingular Wireless-backed Salmon PCS rose to 2nd place from 3rd with $2.92 billion, followed by Alaska Native Wireless with $2.49 billion. Momentum of auction has slowed, inching up from $13.07 billion in net high bids after 31 rounds Fri. Allegheny Communications also dropped out Mon. after its bidding eligibility reached zero. Designated entity drew attention in early Dec. when it made last-min. attempt to halt auction in U.S. Appeals Court, D.C. Court turned down Allegheny’s emergency motion for stay before Dec. 12 start of auction. Other top bidders now include VoiceStream with $802.1 million, Dobson Communications subsidiary DCC PCS with $735.3 million, Cook Inlet with $405.6 million, Leap Wireless with $327.3 million. Largest bid continued to be $1.17 billion that Verizon placed for one N.Y.C. license.
Genuity’s 4th quarter orders were down 17% compared with 3rd quarter, which company attributed to “general economic slowdown.” Genuity said its orders were up 88% compared with 4th quarter year ago. Most of drop was in carrier and ISP orders.
Despite earlier public statements of support, Globalstar wants General Accounting Office (GAO) to overturn deal that awarded rival Iridium $72 million contract last month for satellite telephone service without open bidding (CD Dec 13 p7). Globalstar charged lack of open competition and bidding process violated Dept. of Defense (DoD) bidding procedures, which should invalidate deal. Globalstar filed complaint with GAO Dec. 15. U.S. Defense Information Systems Agency (DISA), which oversaw contract, disagreed with Globalstar and predicted deal would pass legal muster with federal auditors. Military officials have suggested all along that Iridium contract was signed in “best interests” of providing global communications to military and govt. Govt. also played significant part in convincing Motorola “it was in the best interests of national security” to keep Iridium satellites in orbit when company went bankrupt, official said. DISA, which responded to complaint by saying Globalstar lacked capacity to service contract, said it planned to respond to complaint by Jan. 16 deadline. Iridium spokesman said company had no comment. GAO scheduled hearing for March 26.
To no one’s great surprise, cable TV remains dominant technology for delivering video programming to consumers, according to 7th annual video competition report adopted last week and released by FCC Mon. Commission found that cable industry totaled 67.7 million subscribers in June 2000, up one million (1.5%) from 66.7 million in June 1999. But DBS continued to make steady inroads in cable’s market share, adding almost 3 million subscribers over same period to reach nearly 13 million last June, up 29% from year earlier. Largely as result, cable operators now control 80% of burgeoning pay-TV market, down from 82% year earlier, while DBS providers now command growing 15.4%.
Cingular Wireless and CWA finalized 4-year contract that covers more than 2,100 workers in Ill., Mass., N.Y. and Md. and includes 15.3% pay increase over life of accord. CWA said negotiation was first with Cingular, which includes merged wireless arms of BellSouth and SBC. Agreement provides for card check recognition, which allows company to recognize union when majority of employees sign cards saying they want representation. System already exists for wireless workers in SBC territory but hadn’t been for larger Cingular entity. Agreement also creates first pay progression system at Cingular, from entry to top levels, CWA spokeswoman said. While deal covers wage increase, most workers will receive additional boosts under progression plan. Contract creates grievance, mediation and arbitration procedure and keeps existing retirement, health care and education benefits, CWA said. Union now represents 10,000 Cingular employees. Agreement with Cingular came after SBC and CWA late last month broke off negotiations for contract renewal covering Southwestern Bell, Pacific Bell/Nevada Bell, Ameritech and Southern New England Telephone. Contracts don’t expire until April 1 but company and union had hoped to wrap up talks before Dec. holidays.
EchoStar said Mon. it now was offering Starband Internet service for DISH satellite TV and Starband subscribers. Customers can receive 2-way, high-speed Internet and satellite TV with same dish. DISH network retailers are offering service. Company also unveiled DISH Pro 501 satellite TV receiver that features 30 hours of digital video recording and other personal TV services, as well as Pro 301 TV receiver.
PASADENA -- Threatened strike against TV networks this spring by Writers Guild of America (WGA) and other unions (see separate item, this issue) was a major topic of conversation here as Pax TV, UPN and WB kicked off semiannual round of questions and answers with TV critics. “Everyone that’s involved on both sides says there’s going to be a strike,” WB CEO Jamie Kellner said. “I have no involvement whatsoever, so I say there’s not going to be a strike. I think there’s going to be a lot of reasons to avoid a strike.” He and UPN executives said they had contingency plans in place in case there was strike, including at least 4 “reality” programs under development by WB, plus advantage of being able to add movie night by using affiliate Turner Bcstg.’s huge library of films.
White House formally renominated FCC Comr. Ness again for new term, throwing her bid to stay on Commission back to Senate Commerce Committee for consideration. Ness was renominated last year, but Committee Chmn. McCain (R-Ariz.) never scheduled confirmation vote, and she currently functions under recess appointment that expires as soon as another commissioner is appointed. If cleared by Committee, Ness’s 5-year term would start from July 1, 1999, expiration of her last one. However, Commerce Committee spokeswoman said panel would concentrate on confirming Bush cabinet members before considering Ness’s situation.
Ericsson will upgrade network of Ukraine’s Kyivstar to General Packet Radio Service (GPRS) under $100 million contract. Companies said that marked first GPRS agreement in Ukraine. Contract includes addition of GSM 1800 MHz for dual-band capacity and GPRS/GSM core and radio access infrastructure that will allow wireless Web access. Ericsson said wireless Internet services were expected to be in operation in 2nd half of year.