FCC Deputy Gen. Counsel John Rogovin told Practising Law Institute conference in Washington that agency was “seriously hopeful” that Congress would pass legislation implementing NextWave agreement by year-end. But in response to question by panel moderator Richard Wiley, he declined to place odds on Congress’s acting in time to meet condition of settlement agreement that legislation be approved by Dec. 31. He said that beyond that date, “there can be no guarantee we will hold that coalition together. It was pretty fragile.” Under scenario in which request for certiorari before U.S. Supreme Court would move forward next year, even with ultimate ruling favorable to FCC, certainty on disposition of licenses still might not be assured until 2004, he said, citing court scheduling issues.
Exports to China
Cisco Systems remains overall leader in packet voice markets, according to 3rd quarter reports of InfoTech and Synergy Research Group. Long-dominant vendor in data networking, Cisco is using data expertise to outpace traditional telephone equipment vendors as telephone networks migrate to packet technology, reports said. Syndergy said Cisco had shipped more than 500,000 IP phones and 6 million voice-over-IP (VoIP) ports and offers broadest packet voice product line ranging from individual IP phones to voice- enabled branch office systems to carrier grade gateways and switches. In 3rd quarter, Cisco shipped more than 50% of VoIP ports (equivalent to phone lines) and more than 50% of total VoIP equipment, measured by revenue, it said. InfoTech said Cisco was top provider of telephony-enabled local-area network segment of IP-PBX market with 61.6% share in 3rd quarter. It also was overall IP-PBX vendor with 27.6% share. Company increased share in first 9 months of 2001, despite increased competition from other IP-PBX and traditional PBX vendors, InfoTech said. Large carriers that use Cisco gateways and switches for VoIP services include China Unicom, Genuity, iBasis and ITXC, it said.
In bid to increase sale of commercial time, Chinese govt. said it merged largest state-owned communications enterprises under banner of newly formed Radio, Film & TV Group (SARFT). Under SARFT will be fiber cable system called Information Network Center, China Central TV (CCTV), China Film Group, China People’s Radio, China Radio International. Govt. projected combined annual revenue would total $1.34 billion, with more than 20,000 employees.
NeuStar said it was partnering with China Internet Network Information Center (CNNIC) to speed convergence of Internet Protocol and telephony networks in China. CNNIC manages China’s country-code top-level domain, .cn, and is responsible for developing new Internet standards and technologies for China. As part of alliance, NeuStar said, organizations will work on initiatives including: (1) ENUM directory services that enable convergence. (2) Advanced internationalized domain name standards that enable the use of Chinese characters for numerous Internet applications.
Communication Asia Network (CAN) is launching Pan-Asia satellite service stretching from New Zealand to Iran, with China as its priority market and Hong Kong as base. CAN said it had raised $35 million to invest in project. It hopes to transmit service over local cable operators, offering 7 Asian channels providing cultural, educational and information programming, CEO Peter de Krassel said. “I don’t think any business like this could succeed without winning over the market in China.” He said company hoped to break even in 3 years and would offer discount ad rates at start. Company expects to sign up 8 broadcasters in China, including China Central TV. CAN doesn’t have to apply for landing rights because services will be carried by broadcasters with licenses.
ANAHEIM -- Some of country’s leading cable operators expressed optimism that services that satellite couldn’t deliver -- video-on-demand (VoD), subscription VoD, interactivity, high-speed data and telephony -- would solidify cable’s relationship with current customers and bring many defectors to satellite back into fold. Time Warner Cable CEO Glenn Britt, AT&T Broadband CEO Bill Schleyer and Charter CEO Carl Vogel spoke at Western Cable Show here. Britt brushed aside question on whether AOL-Time Warner was interested in acquiring AT&T Broadband, which has been in play since Comcast earlier this year made unsolicited $44.5 billion bid, which was rejected. Schleyer didn’t, nor would AT&T Broadband Gen. Counsel Rick Bailey, on later panel.
SaskTel, Saskatchewan’s state-run telco, announced Thurs. it planned to build and maintain $160 million network for telephony, high-speed Internet, pay TV and other video and data services to homes and businesses in Newcastle region of Australia. SaskTel said it was seeking one or more local partners in Australia willing to share in cost of venture. Project builds on SaskTel’s previous international experience, SaskTel International Pres. Garry Simons said. Over last 15 years, telco has worked in more than 30 countries and on more than 60 projects, he said: “We may not be as large as some of the European and American telecom companies out there, or some of the consulting conglomerates that operate internationally. However, there is nothing small about installing the telecom system in the English Chunnel, or deploying 1,500 km of fibre optics in the South China Sea, or providing over 550 telecenters in the rural Philippines. And there is nothing small about providing a communications network throughout a country like Tanzania.” Richard Face, Special Minister of State for Hunter Development, which includes Newcastle region, said region couldn’t wait for existing phone company, run by state, to improve service, so it turned to SaskTel. “SaskTel International is highly regarded around the world,” he said. SaskTel describes itself as “a full service provider located in the rural heartland of Canada.”
Lucent completed sale of fiber cable unit to Furukawa Electric for $2.3 billion, $225 million less than originally agreed. Furukawa said it would pay $2.13 billion in cash and its partner in acquisition, CommScope, would pay $173 million in cash and equity to buy business. Two companies formed venture to operate part of cable business. In separate agreement, Corning said it would purchase for $225 million remaining portion of business, which consists of 2 joint ventures in China. Lucent’s fiber cable unit had more than 6,000 employees and sales of $2 billion last year. Earlier in year, analysts expected unit to sell for $4-$8 billion, with $5-$6 billion most likely range.
Telecom equipment vendors at UBS Warburg Global Telecom Conference in N.Y. Wed. stressed extent to which they were reacting to reduced spending by service providers and altered buying patterns in face of sagging demand. “The best-laid plans will be slowed,” Tellabs CEO Richard Notebaert said. “Physical deployments or expenditures will not perhaps go as quickly as people thought 6 months ago.” Like several other top executives at 3-day conference, Notebaert, former Ameritech chmn.-CEO, said carriers still would invest in networks because broadband demand remained. But while network investments will continue, “I think it will go a little slower than some startups led people to believe,” he said. Several wireless equipment manufacturers were bullish on prospects that mobile data finally would take off, with emphasis on target marketing to niche user segments and technology that pushed content to consumers. Ericsson Investor Relations Vp Gary Pinkham said company expected international market for mobile systems to be flat to down 10% in 2002, although he added: “We think we are in a position to grow faster than the market overall.”
Motorola demonstrated live CDMA 1X data call at PT Wireless show in China. Working with China Unicom, company showed both multimedia wireless video streaming and high- speed Internet browsing on trial network jointly built by companies. CDMA 1X is backward-compatible with CDMA IS95A/B systems and supports 144 kbps packet data. Demonstration reached 153.6 kbps, design limit of system, increasing capacity of current CDMA IS95B system 4-6 times for data, 1.4-1.6 times for voice. Motorola is largest supplier of CDMA product to China Unicom.