Judicial Watch criticized $14 million settlement by Loral and U.S. State Dept. Wed. over company’s involvement in providing secret missile technology to China after failed rocket launch in 1996. Justice Dept. also ended its separate investigation of Hughes Electronics for its alleged involvement in helping China improve its nuclear capabilities, and settlement is expected, company said. Judicial Watch in Nov. 1998 filed shareholder lawsuit in U.S. Dist. Court, D.C., against Loral Chmn. Bernard Schwartz, ex- President Bill Clinton and ex-Vice President Al Gore, charging payment to Clinton Administration to provide export licenses, access to Commerce Dept.-sponsored trade missions and to “look the other way” as Loral improperly aided China’s nuclear program. Loral agreed to pay $14 million to State Dept. with no interest over 7-year period. As part of agreement, Justice Dept. terminated its investigation of company. Loral will spend additional $6 million to strengthen its export compliance program. Schwartz said company had “excellent security record” and had “instituted an extensive new training program, significantly expanded staff and greatly improved oversight in the area of export control.” Investigation began when Loral employee sent copy of Independent Review Committee report on failed launch to Chinese govt.
Exports to China
NSI Global received $700,000 contract to supply satellite communications network to Central Trust of China. NSI network will consist of 10 sites and will be based on FlexiDAMA product line, which provides voice and data communications services.
NSI Global was awarded $1.8 million contract to supply satellite communication network to Metso Corp. for pipeline operations in China, company said Tues.
China Unicom conducted limited launch of wireless service using CDMA technology in long-awaited move lauded by Qualcomm. China Unicom is 2nd largest state-owned telecom company in country and launched cdmaOne system at Tues. ceremony in Beijing. Qualcomm said China Unicom would provide CDMA service to more than 350 cities, penetrating as much as 75% of China’s population. Beijing Youth Daily reported last week that Unicom expected to issue 400,000 numbers on its CDMA network by April 8. Unicom executives reportedly said at Beijing news conference Tues. that in 3- month trial, carrier filtered through suggestions on improving service before conducting larger-scale launch.
Research firm Yankee Group projected that global wireless handset sales would reach 596 million by 2005 from 395.8 million in 2001. It forecast that Asia would be leading region for growth, led by strong sales in China. Yankee Group also said it expected greater segmentation in handset market in next several years as more categories of consumer and business end users developed.
Nokia said it would deliver digital professional mobile radio network for shared use by Beijing authorities under agreement with Beijing Hua Xun Group, terms not disclosed. Nokia said its Tetra system would provide voice and data communications for govt. departments in China including public safety and security, transportation, utilities, construction, emergency services. Company said “agreement marks the start of a shared-network market for digital professional mobile radio in China.” It said equipment covered by agreement included digital switches, base stations, dispatcher system, network management system, terminals, customer services. Nokia said network would offer general platform for participating agencies and would give each entity opportunity to build its own virtual private network for radio communications. “The Tetra network will enable the Beijing government to realize its commitment to guarantee professional radio communication services for the 2008 Olympic games,” Nokia said.
Cable Technology Notes: CableLabs told FCC in filing that 3 set-top manufacturers had signed CableLabs POD-Host Interface License Agreement (PHILA): Pace Micro Technology PLC, Motorola Broadband Communications Sector, Scientific- Atlanta… Comcast and Cox signed marketing agreements to offer home security and communications systems developed by Security Broadband Corp. using cable modems and lines… Cox said it was deploying Cisco’s 12400 and 7600 Internet routers and Cisco’s catalyst 6500 switches on backbone of its new network to deliver voice and data… Cox also said it had begun moving Cox@Home Internet customers off Excite@Home’s network to company’s $150 million, self-managed network. Due to bankruptcy, Excite@Home will shut down at end of Feb… TechTV signed agreement with Sun TV to give viewers in China, Hong Kong and Macao access to TechTV for 3 years. Sun TV will provide localized, Mandarin-language versions of TechTV… Digital Island announced agreement to provide 2-way Web services to Sony Pictures Digital Entertainment for use on www.sonypictures.com and www.screenblast.com… nCUBE said it completed digital program insertion test with Adlink and that its product gave local and regional cable advertisers ability to target their digital subscribers… DoveBid will auction assets of Orange County NewsChannel in live Webcast auction at 1 p.m. EST Jan. 17. Cable channel is closing because of financial problems.
Minerva Networks delivered 81 video network platforms (VNP) to China Censtream Broadband Networks for IP-based TV network throughout Xing Jiang province in western China. Network build-out ultimately will reach more than 1.2 million subscribers in 29 provinces, Minerva said. VNP units will be installed by end of first quarter this year, creating up to 5 IP TV headends that will serve as central point of subscriber management, media aggregation and distribution of TV services over high-speed broadband IP network. Services will include live TV, video-on- demand, near video-on-demand, gaming, time shifting, personal video recording and interactive advertising, company said. Minerva earlier signed agreement with Tianjin Zhonghuan Networks to deploy IP TV services for China Telecom.
White House review of federal agency actions with potential impact on national defense, possibly including spectrum issues, could be established under Dept. of Defense (DoD) authorization bill (S-1438) signed late last week by President Bush. New law addresses request by Defense Secy. for Executive Branch “defense impact review process” and directs DoD head to submit formal recommendation to President and Congress for consideration. Although law doesn’t identify specific agency proposals or proceedings, creation of executive review process implicitly provides DoD and White House with additional opportunities to weigh in on future actions by FCC and NTIA, such as reallocation of military spectrum for commercial 3G wireless deployment.
Nokia will expand broadband DSL network in equipment and services deal with Hebei Telecom China, terms not disclosed. Company will supply DSL access multiplexers for network that provides fast Internet access to major cities in Hebei province that surrounds Beijing.