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.
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.
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.
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.
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.
XM Satellite Radio expected to launch first of 2 Boeing 702 model satellites after our deadline Jan. 8 with window for XM-1 satellite called Roll opening at 5:35 p.m. ET. from sea site 3,000 miles west of Long Beach, Cal.
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.
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%.