Cablevision Systems said it aims to install up to 500,000 Sony advanced digital cable boxes in subscribers’ homes this year, starting in June. MSO, which plans to take 3-1/2 years to deploy advanced digital boxes throughout its large N.Y.C. area franchise, said it also intends to start offering IP telephony through its digital set-tops later this year. In addition, Cablevision said it added 100,000 high-speed data customers in 4th quarter, closing 2000 with 239,000 cable-modem subscribers, or 12% of homes marketed. Separately, Cablevision and AT&T completed swap of cable systems in N.Y.C. and Boston areas. As part of trade, AT&T received systems serving 358,000 customers in Boston and eastern Mass., boosting its Boston market cluster to nearly 2 million subscribers and 3.5 million homes passed. In return, Cablevision gained systems in northern N.Y. suburbs serving 130,000 subscribers, as well as $870 million in AT&T stock and about $300 million in cash. With deal, Cablevision’s N.Y. cluster now serves about 3 million homes and passes more than 4 million.
FCC C-block bidding edged up to $14.2 billion Tues. after 39 rounds, with Verizon Wireless solidifying its lead to $6.5 billion. While overall pace of bidding has slowed since auction resumed Jan. 4, Verizon Wireless bids picked up, rising from $5.1 billion in net high bids Mon. AT&T Wireless-backed designated entity Alaska Native Wireless came in 2nd with $2.5 billion, followed by Cingular Wireless-backed Salmon PCS with $1.9 billion. For first time on Tues., 2 N.Y.C. licenses edged up past $1 billion. Previously, Verizon had been bidding $1.17 billion for one license in that market, but it edged up bid for 2nd to $1.27 billion. Alaska Native Wireless is bidding $930.7 million for 3rd license there.
Verizon formally asked Pa. PUC to support Sec. 271 application to FCC for interLATA long distance authority and informed PUC it planned FCC filing in 100 days (around April 20). Verizon’s filing with PUC Tues. said carrier had met all 14 market-opening requirements of Sec. 271 checklist, its Pa. local markets were “fully and irreversibly open” to local competition and CLECs “can compete effectively using our systems.” Verizon said final report by KPMG Consulting on operation support systems test proved its claims: “Our systems scored an ‘A’ on this rigorous test. The results validate the real-world experience of more than 85 competitors who rely on our systems to provide local phone service” in Pa. Verizon said CLECs were serving 670,000 customers using 220,000 resold Verizon lines and 450,000 of their own lines. Verizon said it had implemented 164 interconnection agreements and 1,700 colocation agreements with competitors, had installed 310,000 trunks between its network and those of competitors, and exchanged more than 15 billion traffic min. with CLECs in 2000 -- 32% more than in 1999. Verizon said 85% of its residential lines and 91% of business lines were accessible to CLECs. Local rival AT&T disputed Verizon’s claim of 271 compliance, saying KPMG test failed to provide conclusive proof Verizon could handle commercial volumes of CLEC orders for voice loops and digital subscriber lines on day-to-day basis without glitches. AT&T said CLECs “continue to be hamstrung by Verizon’s wholesale unit” in Pa. local marketplace.
Michael Brouder, ex-WBZL Miami, appointed dir.-creative services, WGN Cable, Chicago… Ronald Walter promoted to vp-govt. & cable relations, N. Y. Times Bcst. Group… Kathy Payne promoted to dir. of programming, Cox Communications… Bob Walker, ex-KQMB Salt Lake City, becomes program director, WKTI Milwaukee… Dave Wampler promoted to dir. of finance-central and eastern regions, CableRep Advertising… Philip Bouchard, ex-ThinkLink, appointed CFO-COO, Chapter 2… Bob Collet, ex-Teleglobe, named pres., Velocita… Jack Reily, ex-Broadview, appointed exec. vp-corporate development, Efficient Networks… Mona Klausing, ex-Novatel, named dir.-product mktg., Invertix… Craig Young, AT&T Canada vice chmn. and dir., joins board of Global Metro Networks… Joseph Armstrong, ex-State Of The Art Inc., appointed CFO, Sorrento Networks… Davis Masten, co-founder, Cheskin Research, elected to Truste board… Minoru Nakamura, ex-NTT PC Communications, appointed pres., AOL Japan… Alan Amico promoted to CPO, PeopleFirst.com… Marc Randall advanced to vp- engineering, Force10 Networks… Lance Simmens, ex-Small Business Administration, appointed dir.-govt. relations, Screen Actors Guild… Promoted at 20th Century Fox: Ted Gagliano to pres.- postproduction, Joe Hartwick to pres.-physical production… Travis Rutherford, ex-Dreamworks and Disney, appointed senior vp, MGM Consumer Products and Interactive Divs.
AT&T and Insight Communications said they closed on their previously announced deal to add 530,000 cable subscribers to their Insight Midwest joint venture managed by Insight. Under agreement, AT&T is contributing systems in Ill. with 250,000 subscribers, while Insight is adding systems in Ga., Ill., Ind. and Ohio with 280,000 customers. Deal expands Insight Midwest’s total reach to 1.4 million cable subscribers, almost entirely in Ill., Ind., Ohio and Ky. In conjunction with transaction, Insight said it closed on new $1.75 billion credit facility to finance expanded venture.
Cellular Telecommunications & Internet Assn. (CTIA) urged FCC to continue to forego regulation of wireless intercarrier roaming, contending automatic roaming rule isn’t needed. Comments are in response to notice of proposed rulemaking (NPRM) in which FCC examines whether mandatory automatic roaming rule remains unnecessary. NPRM said agency wouldn’t mandate automatic roaming unless market forces along couldn’t ensure availability of competitive roaming services. “The Commission’s current roaming requirements have proven sufficient to foster cellular and PCS roaming services without imposing undue costs” on industry, CTIA said. National Telephone Cooperative Assn. (NTCA) didn’t ask FCC to implement mandatory automatic roaming requirement, but asked it to continue to monitor situation to “ensure that roaming agreements do not discriminate against small and rural CMRS providers.” NTCA said market appears to be working “and automatic roaming agreements are generally available where it is technically and economically feasible.” While rural carriers don’t have trouble striking roaming deals, sometimes terms are “unjust,” group said. In such cases, NTCA said, “the rural carrier pays more for the privilege to roam in the urban territory than the large carrier pays to roam in the rural territory.” Rural Ala. carrier Corr Wireless Communications went step further, saying market is “clearly not working on its own to prevent abuses of power.” “Small independent carriers do not have the economic clout to bargain with large carriers who have their own wide-area footprints for automatic roaming,” Corr wrote, citing alleged problems with Cingular Wireless. “This permits large carriers to engage in the very sort of bullying abuses which led” to regulatory curbs for wireline competitors, Corr said. Corr is asking agency to adopt automatic roaming rule that tracks basic interconnection obligations of common carriers under Telecom Act. Several commenters cited concerns about wireless consolidation, which they said creates less incentive for larger competitors to strike low priced roaming pacts.
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.
Level 3 plans to build western link to previously announced pan-Asian undersea cable system it’s constructing with Flag Telecom to connect Hong Kong and Japan. Total cost of system is $900 million, with Hong Kong-Japan segment expected to be in service by June. New western segment will include connections to Korea and Taiwan and is expected to begin operating in early 2002. Taiwan segment is to start late this year. “Our partnership with Flag enables us to mitigate the cost of this expansion, as well as our initial cost of building the Hong Kong-to-Japan segment,” Level 3 Asia CEO Steven Liddel said. Companies said that Asian undersea cable system would connect to N. America and Europe through Level 3’s ownership in Japan-U.S. cable and company’s own transatlantic cable. Level 3 is overseeing construction of eastern link of pan-Asia system and Flag has purview over western link and management of entire system when it’s completed. Each company will own 3 fiber pairs in new system, which will have capacity of 320 Gbps. Carriers said upgrades could provide maximum capacity of 2.5 terabits per sec (tbps) on eastern link and 3.8 tbps on western segment.
ICO-Teledesic Global Ltd. received FCC authority to transfer control of license held by predecessor Teledesic to construct, launch and operate nongeostationary orbit Fixed Satellite Service satellites. ICO also received exemption from space station “cutoff rule” that will allow it to continue prosecuting its pending letter of intent to access 2 GHz Mobile Satellite Service frequency bands. Commission said decision would permit completion of planned merger of Teledesic and ICO into single organizational structure and would serve public interest by facilitating rapid deployment and competition for broadband services. FCC gave companies 60 days to complete transaction.
Adelphia Communications said it plans to offer about $485 million in class A common stock and $400 million in convertible subordinated notes to investors, following successful offering by Charter Communications late last week. Separately, Adelphia said it began rolling out Wink Communications’ interactive TV service in upstate N.Y., offering service as free feature for digital cable subscribers in Buffalo area. MSO said it plans to introduce in another 2 undisclosed markets by early Feb.