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.
Sweden’s Telia, which is battling govt. decision not to award it 3rd-generation wireless license, unveiled plan Mon. to create 50-50 joint venture with Tele2, subsidiary of NetCom. Tele2 received one of four 3G license from Sweden’s National Post & Telecommunications Agency (PTS). It said venture will build next- generation mobile network. Agreement gives Telia “equal access” to 3G license that Tele2 has received. “The risk related to the UMTS (Universal Mobile Telecommunications System) investment is radically reduced through this joint venture,” NetCom CEO Lars- Johan Jarnheimer said. Companies said they were considering similar venture in Norway. Agreement with Tele2 will remain valid regardless of outcome of Telia’s appeal with PTS, companies said. Telia is asking country’s courts to suspend PTS decision, citing what it charged were problems in process of awarding spectrum (CD Jan 8 p6).
LAS VEGAS -- FCC Comr. Powell endorsed free market vs. govt. regulation, pleasing consumer electronics officials at the CES here Sat. But reaction was more muted when he also indicated reluctance for govt. to move aggressively to spur DTV transition. Powell, who is widely rumored to become next chmn. of FCC, was interviewed one-on-one by CEA Pres. Gary Shapiro, also rumored to be candidate for position in new Bush Administration, despite recently signing new 10-year contract with CEA.
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.
EchoStar could receive valuable Ka-band slot over continental U.S. if FCC approves request from VisionStar to transfer its Ka- band satellite slot to company, VisionStar said in Dec. 15 filing at agency. If Commission agrees, VisionStar/EchoStar partnership would take control of satellite licenses at 113 degrees W, directly over continental U.S. Commission granted VisionStar license for slot in May 1997 in first round of Ka-band allocations.
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.
USTA Pres. Roy Neel, who has been on leave of absence to work in Vice President Gore’s campaign for President, won’t be returning to his post, Assn. announced Mon. Neel officially leaves USTA March 31 but will be working on special projects until then. Interim Pres. Gary Lytle will stay on to run USTA while search committee seeks permanent replacement. Neel, who had been at USTA 7 years, didn’t say what he planned to do.
Sprint PCS said it now reaches more than 1 million wireless Web customers, which it said represented first time N. American carrier had hit that total. Sprint began service in Sept. 1999.
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%.
AT&T Broadband executed across-board trimming of its Atlanta- area work force, laying off 309 employees last week in what spokesman said was cost-saving and realignment operation. Cuts involved employees in call center, field operations, marketing, finance, human resources and midlevel management, he said. Action follows 6-month “top-to-bottom” review of entire Atlanta operations, spokesman said, and jobs were seen as not “mission critical” to improve customer service, efficiency, competitiveness. He said 40-50 of jobs involved inbound sales calls that were outsourced to company in Tex. “It is strictly an Atlanta initiative,” spokesman said when asked whether company was planning job cuts in other areas.