FCC is considering proposed rulemaking that would regulate interactive TV (ITV) services carried by all cable operators, knowledgeable sources confirmed Tues. Proposed regulations would be likely to ban all cable systems offering interactive services from blocking ITV triggers from rival content providers, similar to ITV conditions that FTC recently imposed on AOL’s pending purchase of Time Warner (TW). But sources said FCC rules could go further than FTC merger conditions, prohibiting cable operators from favoring their own content by caching it on local servers or sending it at higher data speeds than content from unaffiliated providers. “I'm sure they're talking about all sorts of things,” said source who declined to be identified.
Sea Launch Commander and Odyssey Launch Platform are headed toward equator to launch Boeing 702 model XM-1 satellite, dubbed Roll. Launch window for first of 2 Sea Launch missions for XM Satellite Radio opens at 5:35 p.m. ET Jan. 8. Launch will take place from open sea 3,000 miles from Long Beach, Cal.
National Exchange Carrier Assn. (NECA) files revisions in its average schedule formulas that will result in combined increase of 2.49% in common line and traffic-sensitive settlements. Those “settlements” are like interstate access charges for small rate- of-return carriers that don’t conduct their own cost studies. NECA said new formulas would go into effect July 1 if FCC approved them.
Cablevision Systems reportedly has placed its Rainbow Media Holdings programming group up for sale after first planning to spin off unit as separate tracking stock. N.Y. Times said Cablevision, which had been considering move for weeks (CD Dec 22 p6), already had contacted USA Networks, NBC, Comcast and Liberty Media Group, 4 most likely suitors. Cablevision reportedly is seeking $5-$6 billion for Rainbow. Companies have until Jan. 16 to submit bids. Move came as UBS Warburg downgraded rating on Cablevision stock to buy from strong buy Tues. because Rainbow sale would “remove a major catalyst for the stock.”
Capitol Bcstg.-backed AccessDTV said it was starting DTV-to- PC service at Consumer Electronics Show in Las Vegas this week. AccessDTV offers package of hardware, software and services to allow DTV to be displayed on PC monitors, including universal analog/digital tuner card, antenna to receive broadcast DTV signals, DTV video card, software including on-screen remote control, interactive program guide, personal video recorder-like functionality. Package allows PC (at least 300 MHz) to output DTV and AC-3 digital audio, company said. Pricing hasn’t been set, but it’s expected to be under $500 for one-time purchase, with option of smaller upfront fee combined with monthly subscription. DTV broadcaster Capitol is minority investor, with rest coming from what company called “techno-angels.” It’s currently raising additional financing. First hardware is expected to be in consumer hands by end of March and AccessDTV has deals with several unnamed suppliers. “Most people could tune DTV broadcasts today, but they simply don’t have the right equipment,” COO Doug Leech said: “AccessDTV enables PC users to experience… DTV interactively and affordably.”
AT&T followed lead of Cox in seeking waiver of franchise fees on cable-delivered Internet services, in letters to franchise authorities within jurisdiction of 9th U.S. Appeals Court, San Francisco. Waiver would be in effect until regulatory uncertainty about classification of service was resolved, MSO said. However, responding to requests from several local franchise authorities (LFAs) and National Assn. of Telecom Officers & Advisers, AT&T has extended time for cities to respond to its request to Feb. 15 from Jan. 1, 2001.
Wash. Utilities & Transportation Commission (WUTC) is implementing new colocation rules setting deadlines for incumbents to complete CLEC colocation orders. Under new rules, incumbents have 45 days to complete CLEC colocation orders, provided colocation site was included in CLEC’s quarterly demand forecast and CLEC puts up 50% of nonrecurring installation charges when order is placed. For any other colocation order, incumbents have 90 days from date of order for completion. CLECs will be entitled to partial or full refunds of installation charges for failure to meet either deadline unless incumbent can prove delay was caused by CLEC self-provisioning activities. If an incumbent claims space problems will prevent honoring colocation request, it must notify CLEC within 10 days and petition WUTC for waiver of deadlines.
Rep. Tauzin’s (R-La.) selection as next chmn. of House Commerce Committee was all but official Tues., well-placed sources told us, after House Rules Committee released long-rumored proposal to create expanded Financial Services Committee. New panel is expected to be headed by Rep. Oxley (R-O.), Tauzin’s rival to succeed former Commerce Committee Chmn. Bliley (R-Va.). Full House will vote today (Wed.) on committee changes, and Republican leadership will choose committee heads Thurs.
Telemonde and Global Crossing renegotiated $52 million agreement over transatlantic capacity. In Dec. 29 SEC filing, Telemonde said it issued 5 million shares of convertible preferred stock at 1 cent par value to Global Crossing and agreed to purchase $8 million in services from company in next 5 years. In exchange, Global Crossing released Telemonde from outstanding commitment to buy almost $43 million of transatlantic capacity. Just under $12 million of Telemonde debt is rescheduled, at 7% interest, with final payment due Nov. 2002.
Cyclone-3 rocket carrying 6 Russian communications satellites failed after launch Thurs., resulting in loss of all 6 spacecraft. Spokesman for Strategic Missile Forces said first and 2nd stages of rocket functioned normally, but 3rd failed. Launch failure from Plesetsk cosmodrome in Russian Arctic is 2nd in 2 months for agency, as EarthWatch lost satellite in Nov. 21 launch on Cosmos-3 from Plesetsk (CD Nov. 24 p4). Satellites burned up after re- entry into atmosphere, scattering debris into Arctic Ocean, but officials said debris caused no damage. Russian Aerospace Agency suspended launches on Cyclone-3 rockets until agency can determine cause of failed launch, agency spokesman said. Similar failure nearly cost agency 6 Strela military satellites 2 years ago, but agency saved them.