Strategis Group report issued Thurs. cited “commercial uncertainties” that remain on 40-43.5 GHz band that European regulators were considering licensing for fixed wireless services. Study said band could allow new market entrants to gain foothold against dominant competitors. European Radiocommunications Committee has designated band for broadband, multimedia wireless systems, Strategis Group said. Among potential challenges for that spectrum is that adequate hardware may not be available for commercial operations, said Diane de Polignac, Strategis Group Europe consultant.
TMI Communications and EMS Technologies unveiled packet data terminal for U.S. transportation industry Jan. 3 after FCC approved modification in TMI’s license that allowed them to operate EMS PDT-100 packet data terminal in U.S. exclusively on TMI mobile satellite network. Firm said technology gives truck fleets tracking and messaging capabilities, doesn’t interfere with emergency communications services, reduces costs.
Qualcomm signed royalty-bearing CDMA infrastructure equipment license agreement with GBase Communications, terms not disclosed. Agreement licenses certain Qualcomm patents and agreements to GBase to develop and manufacture wireless infrastructure equipment for in-building or campus network applications. Pact covers cdmaOne, cdma2000, cdma2000 1xEV.
Coalition of major broadcasters, cable networks, movie studios, record companies, sports leagues and other content owners lobbied FCC for strong copy protection technology for advanced digital cable set-top boxes. In joint 4-page letter to FCC Chmn. Kennard Thurs., ABC, BMI, CBS, ESPN, Fox, Minor League Baseball, MPAA, NBC and RIAA argued that “cable interface devices must include the capability to protect certain high-value content against unauthorized copy and Internet retransmission” because of “the economics of producing and distributing high-value programming.” Responding to letter by House Telecom Subcommittee member Boucher (D-Va.) to Kennard last month, group also contended that advanced digital set-tops must be capable of providing some level of content protection “so consumers that purchase such devices will be able to receive the widest variety of program choices, including high-value programs that may be made available only if content protections are in place.” It said “alternative is to introduce devices in the marketplace that cannot provide content protection, and therefore cannot receive certain types of high-value programming.” Content owners also disputed Boucher’s contention that “freely broadcast programming should remain freely copyable,” contending that local broadcasters would be relegated to “the position of ‘low-value’ content distributors.” They questioned whether there was any public interest “in allowing consumers to make multiple copies of broadcast programming, or to retransmit broadcast programs over the Internet.”
Network Access Solutions (NAS) said SBC converted NAS preferred stock into common and agreed to resell NAS’s broadband services in Verizon territory. Preferred shares, which were issued as part of $75 million SBC investment in NAS in March, were converted into 2.6 million common shares at $31 per share. “This will help SBC flesh out our DSL network” in northeast U.S., SBC executive said. NAS also will assign to SBC the central office sites in BellSouth and Qwest territories that were built under agreement between 2 companies and Telefonos de Mexico. NAS will take $24 million reduction in “paid-in capital” in 4th quarter to reflect transaction.
Globecomm said it signed $4.2 million contract with unnamed telecom company in southern Europe for development, integration and delivery of Ku-band satellite network.
Rural Task Force (RTF) asked FCC to act within 45 days on task force proposal for rural universal service revisions. In Jan. 3 ex parte letter, RTF said Federal-State Joint Board on Universal Service already had developed “extensive record” of comments on recommendation, so swift action was plausible: “Because the recommendation now in front of the FCC is unchanged from that put out for comment by the Joint Board, it is highly unlikely that an additional round of comments from the FCC is required.” If FCC decides to seek more comments, it ought to complete comment process in 30 days, RTF said. RTF Chmn. William Gillis said group realizes Commission had many demands but “each additional day of delay in implementing universal service reform for rural carriers puts at risk much-needed investment in rural America.”
Time Warner Cable began offering commercial video-on-demand (VoD) service in Tampa Bay, expanding total reach of its nascent VoD service to 130,000 digital cable homes in Fla.’s Pinellas County. Concurrent Computer Corp., which is supplying technology for Time Warner, said deployment now exceeded total U.S. installed base claimed by other VoD suppliers. Time Warner also is using Concurrent’s video server and software system in Honolulu area.
Offering optimistic view in generally downbeat industry, McLeod USA told analysts Thurs. it expected its 4th-quarter revenue would exceed expectations at $408 million, with full-year revenue exceeding $1.4 billion. In conference call with analysts, company didn’t address projections that McLeod would face per- share loss for both periods but said its operating profit would be up. COO Stephen Gray said McLeod had 1.1 million access lines at yearend and its “fundamentals have never been stronger in terms of people, assets and execution.” CEO Clark McLeod said company had been “almost boring with our predictability.” He also announced Gray had been named co-CEO, reflecting fact that he and Gray have been sharing leadership in company. “Today we recognize that with our titles,” McLeod said. In answer to question, Gray said company’s acquisition of CapRock Communications would add $70 million to year-end revenue and offset operating profit by negative $2-$3 million. Later in day, Moody’s assigned B1 rating to $450 million in senior notes that McLeod said it planned to offer. Moody’s also retained negative outlook for all McLeod ratings to reflect “the risk of a company in its high-growth phase.” In addition, “generated cash flow is still modest relative to the company’s debt,” Moody’s said. Rating service said, on other hand, it took into consideration McLeod’s “strong management team, good strategy and established track record of strong business plan execution.” McLeod’s shares were up almost 19% at end of day to $19.88.
GiantLoop Network and 360networks announced alliance in which latter will be GiantLoop’s preferred provider of N. American and transatlantic broadband services. In addition, 360 networks made “very minor” equity investment in GiantLoop, Waltham, Mass.-based fiber network.