Sprint PCS reached agreement with China Unicom, 2nd- largest wireless operator in China, to provide training and consulting for that carrier’s CDMA operations, terms not announced. But companies said pact was expected to be first step to broader relationship between them in developing CDMA2000 technology. After China enters World Trade Organization, China Unicom plans to implement strategy of investing abroad, Vp Shang Bing said.
Exports to China
Alcatel announced formation of Alcatel Shanghai Bell, integrating Alcatel in China, Shanghai Bell and Shanghai Bell Alcatel Mobile Communication. Company’s legal structure limited by shares gives it flexibility to be listed in China in future, Alcatel said. French equipment maker holds 50% plus one share in company, with Chinese entities holding rest. Alcatel Shanghai Bell will develop products for fixed and mobile networks for Chinese and international markets. It expects $2 billion sales in first year of operation, as well as $1 billion exports in first 3 years, Alcatel said.
Countries that back controversial cost-sharing plan on international Internet connections “may have it flipped upside down,” State Dept. official said Thurs. Proposal (CD May 23 p3), International Charging Arrangements for Internet Services (ICAIS), is likely to be issue at next week’s Asia Pacific Economic Cooperation (APEC) telecom ministerial meeting in Shanghai, China, said David Gross, U.S. Deputy Assistant Secy. of State for International Communications. ICAIS grew out of World Telecom Standardization Assembly recommendation 2 years ago that administrations involved in international Internet connections forge bilateral commercial cost-sharing agreements. U.S. is opposed to idea, however, on ground that it amounts to regulation that could hamper Internet development. Now, said Gross, U.S. has “extraordinarily good story” to tell APEC participants about how changes in Internet market over last 2 years make it essential that individual parties be allowed to decide how to connect with each other when neither has market power. Gross doesn’t see any market power issues in international arena, he said, although there may be lack of competition in certain economies. Other key issues are likely to be network security and broadband, he said. At next week’s meeting, Gross said, he, NTIA Dir. Nancy Victory and FCC Comr. Copps would hold several “substantial” bilateral meetings with Chinese delegates, as well as with Malaysia, Chinese Taipei, Hong Kong and others. They also are trying to set up meetings with Korea and Australia, he said.
Ericsson and Juniper Network received 2nd contract for IP backbone for FuJian CT, subsidiary of China Telecom, terms not disclosed, companies said. FuJian CT will use network to offer Multiprotocol Label Switching (MPLS)-based virtual Private Network (VPN) services. First phase of contract was announced last Oct. Ericsson is sole end-to-end provider for FuJian CT.
Controversial cost-sharing proposal on international Internet connections is expected to again emerge as issue at Asia Pacific Economic Cooperation (APEC) telecom ministerial meeting in Shanghai next week. Over U.S. objections, World Telecom Standardization Assembly (WTSA) approved recommendation 2 years ago that administrations involved in international Internet connections negotiate bilateral commercial arrangements for cost-sharing. While Australia had been among countries taking lead on International Charging Arrangements for Internet Services (ICAIS) issue, several industry observers said APEC meeting in Shanghai is of particular significance because China has since taken lead role in backing this policy. ICAIS is expected to be topic both at U.S.-China bilateral meeting that is set for Shanghai prior to start of APEC meeting, and at APEC’s ministerial gathering, sources said. China has teed up proposal for ministerial meeting that would address how to charge for Internet interconnections when 2 countries have disproportionate traffic flows. “It’s become sort of a religious issue -- either you believe it or you don’t,” one industry source said: “Yet this is a real problem that we have to follow.”
Buena Vista International Pres. David Hulbert downplayed economic slump still affecting TV business and played up potential of overseas markets to American studios in upfront presentation in Hollywood Sun. “Some conventional wisdom says international television is in an economic crisis,” Hulbert acknowledged, but he pointed to lack of cable penetration worldwide as indicating “a lot of potential in this sector.” In addition, he said: “In markets around the world, levels of TV advertising, adjusted for sizes of economies, are still generally well below those in the U.S. and have been growing steadily for most of the last decade, and have lots of headroom to grow further.” Hulbert said failure of ITV in U.K. was admitted setback, but “digital multichannels are thriving and the growth potentials in emerging markets” such as Asia, eastern Europe and China “are amazing.” Perhaps most importantly, he pointed to U.K.’s new Communications Bill, which would allow non-European companies to hold majority stakes in commercial broadcasters in U.K., as important legislation that he hoped would “positively influence the television landscape.”
FCC promoted Kris Monteith to associate bureau chief- intergovernmental affairs, Consumer & Governmental Affairs Bureau… White House said President Bush planned to nominate Seth Cropsey of Greenberg Traurig to be dir., International Bcstg. Bureau… Richard Sulpizio moves to pres.-China operations, Qualcomm, remains on Qualcomm board… Bob Howard-Anderson promoted to acting pres.-CEO, Occam Networks… Kevin Duffy, ex-Siemens, named gen. mgr., Proxim’s new Broadband Services Div.; Steve Timmerman, ex- Inviso, becomes vp-mktg… Mark Effron, ex-Post-Newsweek Stations, appointed vp-live news programming, MSNBC… Steve Davidson, ex-HBO, and Martin Jaffe, COO, Silvercrest Asset Management Group, elected to Worldgate board… Cable Center announced its 2002 inductees into Cable TV Hall of Fame: Daniel Aaron, Comcast; late Edward Allen, Western Communications; Frank Drendel, CommScope; Joseph Gans, Gans Multimedia Partnership; Ted Rogers, Rogers Communications; Gene Schneider, UnitedGlobalCom; Gail Sermersheim, HBO.
FCC denied EchoStar extension of time to launch DBS service at 175 degrees W. orbit location. Permits for 175 W. were issued in 1989 and no progress has been made toward implementation of service, and authorizations to operate 22 channels were cancelled, Commission said, and spectrum will be reassigned. EchoStar had requested extension of operation milestones until Dec., but were required to start DBS operations by Aug. 15, 1999, and Nov. 30, 1998. In 1993, Commission determined EchoStar met first due diligence requirement and assigned company 22 channels 175 W. Original deadline to begin operations was Aug. 1995. EchoStar can appeal decision. It’s one of first times major DBS company has been denied “routine extension,” industry source said: “I don’t know what you could write into it, but it could portend bad things to come” for EchoStar. Industry lawyer said decision shows Commission “is tightening up” on milestones.
China said it expected to launch first of 5 weather satellites Wed. Satellites are to provide advanced atmospheric monitoring and weather forecasting for 2008 Beijing Olympics. Remaining 4 satellites will be launched over next 6 years.
Reps. Berman (D-Cal.) and Tauscher (D-Cal.) released Center for Strategic & International Studies (CSIS) report on reforming satellite technology policy to maintain dominance in space. Report, Preserving America’s Advantage in Satellite Technology, outlines recommendations of CSIS Satellite Commission, saying that if U.S. is to avoid “expensive erosion of its leadership position” in satellite market, new national strategy must be developed that accounts for current “commercial and technological realities” and national security interests and challenges. “Conflicting policies, uncertain goals and an insufficient budgeting process are weakening the technical advantage we currently have,” said Commission member Rep. Goss (R-Fla.). Satellite licensing was transferred to State from Commerce 3 years ago in 1998 Defense Authorization Act after 2 U.S. companies were accused of transferring secret satellite technology to China. White House decision whether to allow State to keep jurisdiction over U.S. satellite exports had been expected after meeting in late March, but nothing has been decided, industry source said. Satellite Industry Assn. (SIA) said it “broadly endorsed the conclusions” of CSIS report. SIA Exec. Dir. Richard Dalbello said: “Communications satellites are commercial items that should not be regulated as military technology.” He said State Dept. licensing was “slow and deliberate” and was “inadequate for fast-paced, competitive commercial world.”