NextLevel said revenue growth in 2001 would be lower than expected because of “slower than anticipated customer deployment.” Company said it would revise its guidance for year in Jan. 24 conference call on 4th-quarter earnings. NextLevel also reported that progress in growing its customer base in 4th quarter had been “offset by reduced revenue from Qwest and slower than anticipated customer development in Korea.” Revised 4th-quarter revenue will be about $31 million with net loss, excluding special items, of about 22 cents per share, company said.
XM Satellite Radio signed agreement with Visteon to jointly design, develop, manufacture, market and license XM satellite radio technology receivers. XM also said it would unveil its full product line from Alpine, Pioneer and Sony at Consumer Electronics Show in Las Vegas Fri. and offer sneak preview of service leading up to launch of first satellite on Mon.
House Republicans surprised few with their choices for new committee heads late Thurs. Choices still had to be ratified by rank-and-file at our deadline. As expected, Telecom Subcommittee Chmn. Tauzin (R-La.) was promoted to Commerce Committee chmn., and Subcommittee Vice Chmn. Oxley (R-O.) was given expanded Banking Committee, apparently clearing way for Rep. Stearns (R-Fla.) to take over Subcommittee. Rep. Sensenbrenner (R-Wis.) won Judiciary Committee, as expected, while Rep. Thomas (R-Cal.) gained Ways & Means.
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.
Commerce Secy.-nominee Donald Evans was cautious on Internet and telecom issues in his appearance before Senate Commerce Committee Thurs., assuring panel members that he would give attention to their pet issues but making no specific commitments. Evans has been busy wandering halls of Senate since his nomination, having visited virtually all Committee members before hearing. He appeared to have little to no opposition, and several lawmakers said they expected to see him confirmed quickly following President Bush’s inauguration. Among topics raised by Senators: (1) NTIA’s Technology Opportunity Program (TOP), lauded by several members for providing technology funds to underserved regions. “I know how important the issue is,” said Evans of digital divide: “I will give it my attention.” He said he would try to convince business leaders to increase private efforts. (2) Wireless spectrum, which several senators said was major topic in their private meetings with Evans. Sen. Rockefeller (D-W.Va.) said country needed “spectrum management strategy… We go from crisis to crisis.” Evans acknowledged that he had just learned about 3rd-generation wireless technology “in the last 48 hours or so,” but said it might help solve digital divide. He agreed that govt. needed long-term strategy for managing and auctioning spectrum. (3) Bureau of Export Administration’s Critical Infrastructure Assurance Office, which Rockefeller said was “underfunded, understaffed.” (4) Internet taxation quandary, which Evans said was “going to be on all of our minds as we approach” Oct. end of current e-commerce taxation moratorium. However, he said, Bush Administration was “sensitive to what it might mean to the tax base of… the cities and the counties and the states. And so those factors need to be considered.” Evans said “important thing is to get all the right constituents to the table to talk” and “this is not something that we should wait until October or September or whenever to talk about it.” (5) Privacy. Asked by Sen. Wyden (D-Ore.) what his “general approach” would be on topic, Evans said only that he would work with ranking Democrat Hollings (S.C.) and Chmn. McCain (R-Ariz.) and others interested in issue. But he said “we shouldn’t continue to procrastinate.”
Arianespace announced twice-delayed launch of Turksat 2A/Eurasiasat 1 on Flight 137 was rescheduled for Jan. 8 in 5:18 p.m.-7:26 p.m. ET window, after authorizing resumption of launch preparations Wed. Arianespace delayed 2nd launch when Alcatel Space, primary contractor for satellite payload, requested verifications Dec. 11 after Arianespace ran its own set for Dec. 11 rescheduling.
Act Against Violence, to steer children away from acts of aggression and violence at young age, is new broadcast campaign backed by Ad Council, National Assn. for the Education of Young Children and American Psychological Assn. Sponsors said goal was to “change peoples’ behaviors and therefore the messages they send to children.” Created by volunteer agency Flashpoint Advertising, campaign includes radio and TV PSAs -- 1-877-ACT-WISE or Web site www.actagainstviolence.org.
Me. PUC opened docket to consider replacing current nonoptional extended local calling plans with optional programs customers can select. Currently, extended local calling surcharges become mandatory if majority of local customers want expansion and PUC approves. PUC said Tues. it was considering replacing current system with either selective extended calling, where customer may add one or more distant exchanges to local area for flat monthly fee per exchange or contiguous extended calling, where customer can add groups of contiguous distant exchanges for flat monthly fees. PUC will hold Jan. 31 workshop with industry to address implementation issues such as intercarrier compensation, specific rates and terms for customers, whether extended calling should be time-unlimited.
Tex. PUC Comr. Judy Walsh resigns to take position with President-elect Bush’s energy policy development team; she will stay on until Tex. Gov. Rick Perry (R) appoints replacement to fill remaining 3 years of her term. Walsh was first appointed to PUC in 1995 by then Gov. Bush… WorldCom names Donna Sorgi, northern region public policy vp, to head its Washington-based federal regulatory group… Rosemary Kimball moves from FCC Office of Media Relations to press liaison at agency’s Consumer Information Bureau… Douglas Hanson, CEO, Internet Commerce & Communications, named CompTel chmn., replacing Global Crossing’s Anthony Cassara, who stepped down… Named partners in Wiley, Rein & Fielding law firm: Mary Borja, John Burgett, Tanja Hens, Scott McCaleb and Suzanne Yelen; named of counsel to firm are Christopher Kelly, ex-U.S. Patent & Trademark Office, and David Southall, ex-Information Management Consultants.
Congress returned Wed. and immediately began wrangling over its rules and makeup for 107th session. Democrats questioned Republican plan to break off financial services oversight from the House Commerce Committee and give it to Banking Committee to resolve battle for Commerce leadership between Reps. Tauzin (R- La.) and Oxley (R-O.) (CD Jan 3 p1). However, it appeared at our deadline proposal would pass. Another unsettled issue in both houses was what percentage of each panel’s seats would belong to Democratic minority. In House, Democrats agitated for ratio closer to current 221-211 party breakdown (51-49%). Last year, Republicans held 29 of 53 Commerce Committee seats (54.7%) and 21 of 37 Judiciary positions (56.8%), and Democrats said they should get 2 more on each panel. GOP leaders offered counterproposal under which each party would get one additional seat on each major committee. Meanwhile, Democrats in Senate continued to push for equal representation on committees since chamber is split 50-50. Last year, Republicans held 11 of 20 Commerce seats (55%) and 10 of 18 on Judiciary (55.6%). GOP in House was expected to begin naming chairmen today (Thurs.), but committee assignments can’t be finalized until agreement is reached on panel ratios.