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.
Viasource Communications updated 4th-quarter revenue and earnings guidance Mon. It predicted total revenue for 4th quarter would be $54-$56 million, with adjusted earnings before interest, taxes, depreciation, amortization (EBITDA), special compensation charges, satellite and wireless revenue deferral in range of $1.7- $2.6 million, which will result in loss of 6-8 cents per share. Pres. Craig Russey said satellite and wireless business “transitioned during quarter as midpower conversions ended” and new high-powered “retail fulfillment installations reached record levels,” but DSL connectivity business has been “big disappointment.” Russey said company “experienced earnings pressure” from costs of rollout of nationwide fulfillment services for satellite and wireless sector along with major changes in DSL industry. Company plans to announce results for 4th quarter and fiscal year 2000 after close of market March 1.
Walt Disney Internet Group said its enhanced-TV telecast of last Wed.’s FedEx Orange Bowl on ABC attracted 122,000 unique viewers to TV-Internet event. Viewers, who logged on to their PCs for specially synchronized Web content while watching football game on TV sets, spent average of 40 min. apiece on enhanced TV features, Disney said. Broadcaster said usage rose as much as 39% after each promo on ABC.
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).
Vodafone is acquiring 34.5% stake in Mexican wireless carrier Grupo Iusacell for $973.4 million in shares purchased from Peralta Group. Iusacell is 2nd largest wireless operator in Mexico with 1.5 million subscribers. Vodafone is joining Iusacell investor Verizon, which already has 37% stake in carrier. Vodafone and Verizon run largest U.S. wireless operator through Verizon Wireless venture. Vodafone Pres. Americas Asia William Keever said Iusacell transaction marked carrier’s entry into Latin American wireless market. “With only 2.2% company subscriber penetration in its 4 cellular regions, Iusacell represents an extraordinary growth opportunity for Vodafone,” he said. Vodafone is paying for Iusacell shares in cash in deal that is expected to close in this quarter.
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.
WorldCom went live with 1.6 terabit Nortel optical network Mon. N.Y.C.-Washington leg is first section of highest capacity network in world to be lit, Nortel said. Network is Nortel Networks’ OPTera long-haul 1600 optical line system using dense- wavelength division multiplexing (DWDM) to split light into as many as 160 channels. “This is the initial phase of a 5-phase migration to the use of optical equipment,” WorldCom spokeswoman said.
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.
N.H. legislature will see several bills on electronic privacy in 2001 session. Prefiled draft bills, which have not yet been assigned numbers, include one by state Rep. Neal Kurk (R-Weare) to establish state Office of Privacy to ensure personal information collected by state agencies is used solely for purpose for which it was obtained. Kurk prefiled another bill to prohibit state agencies from posting personal identifying information about individuals on Internet. Another prefiled bill, with multiple sponsors, would require private entities that collect personal information about their customers, patients or clients to alert those individuals whenever such data were shared with 3rd parties. Still another is HB-115, which would prohibit telemarketers from using automatic dialing equipment to place calls that contain no message. Measure would address common nuisance of autodialers that keep placing calls even when there’s no sales representative available to speak. It would allow civil law suits for greater of $500 or actual damages.
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.