Rep. Berman (D-Cal.) is working on 2nd draft of bill that would return satellite export licensing jurisdiction to Commerce Dept. from State Dept. and expects to introduce legislation after April recess, staffer said. Revision reportedly bolsters security protections found in first draft, though staffer wouldn’t elaborate. But he acknowledged that initial proposal to incorporate State and Defense Dept. special review process for satellite exports to China remains integral part of bill. Rep. Cox (R-Cal.), staunch national security proponent, recently said (CD March 7 p4) he'd oppose Berman bill. Berman aide said he was hopeful Cox would reconsider after reviewing revised draft. Bill has several cosponsors and Berman expects more to come on board, particularly other members from Cal. who are concerned about impact of slow State Dept. export license review and its negative impact on state’s high tech industry, according to staffer.
Exports to China
Loral CEO Bernard Schwartz expressed confidence State Dept. finally would approve sale of ChinaSat 8 communications satellite, following months of delay. In briefing at Satellite 2001 in Washington, Schwartz said he was “more optimistic now than I was before,” deal would go through, citing change in Administration: “The new Administration relieves the focus on the political issues to some degree. It’s a more favorable climate.” State Dept. spokesman had no comment.
Rising from ashes, new owners of Iridium will begin offering “cheaper, more reliable, pole-to-pole service” Fri. In interview between sessions at Satellite 2001, CEO Dan Colussy, Exec. Vp Dannie Stamp, Chief Marketing Officer Ginger Washburn and Chief Technology Officer Mark Adams met with Communications Daily to push merits of new system and management of revamped company. Iridium Satellite LLC bought more than $5.5 billion of assets of now defunct Iridium company, including low-orbiting satellite network, from U.S. Bankruptcy Court in N.Y. Dec. for $25 million. New owners immediately signed 2-year, $72 million deal with Dept. of Defense and revamped business plan with strong concentration on maritime, oil, aviation, gas, mining, construction, forestry, military and govt. markets. Stamp said “truly mobile, truly global” voice services would be available through 66-satellite network and Tempe, Ariz., gateway to land-based networks.
EnReach Technology unveiled agreement with Broadcom Corp. to integrate former’s digital TV software for interactive services with Broadcom’s digital cable set-top box reference platform. EnReach said deal would enable Broadcom’s platform to support such services as Web browsing, e-mail, personal video recording, enhanced TV. Companies planned to demonstrate their integrated system at China Cable Bcstg. Network show in Beijing, that starts today (Thurs.).
LAS VEGAS -- Online games and music can generate significant new revenue and reduce churn for wireless communications companies, speakers said at CTIA convention here Mon. Wireless Internet games alone generated $300-$350 million revenue in 2000, said Eric Goldberg, pres. of Unwired Games Inc. Music artist agent Bill Diggins of Diggins Entertainment said music delivered via wireless devices would be “the Walkman of the new millennium.”
China Unicom, carrier that’s competitor of incumbent China Telecom, is adding nearly one million subscribers every month, China Unicom Pres. Jianzhou Wang told Credit Suisse First Boston conference Wed. To boost sales, company is using employee incentive methods that are relatively new to China, such as basing employee salaries on sales results, he said. China Unicom also has signed agreement with China Postal Service in which 60,000 branch offices will sell company’s telecom products, Jianzhou said. China Unicom forecasts it will have 35% market share in 2005, which would give it 100 million subscribers up from current 15 million, he said. China Unicom, which operates GSM network, is testing CDMA network. Decision to try another standard was driven by need for additional capacity and expectation that customers would want choice of more than GSM, Wang said. China Unicom now has 1% market share in long distance and expects it will grow to 10% in 2 years and 20% in 5 years, Wang said. For long distance, 600 million min. of traffic last year were carried by voice over IP, vs. 400 million min. over public switched telephone network, he said.
Satellite Industry Assn. (SIA) understands national security argument for maintaining State Dept. oversight of satellite launch and missile technology exports, but it says State export licensing of commercial satellites lacks logic and puts U.S. companies at competitive disadvantage with terrestrial capacity providers and foreign manufacturers. SIA Exec. Dir. Clayton Mowry sees this year possibility that some congressional defense hawks may support satellite export bill (CD March 6 p2) being drafted by Rep. Berman (D-Cal.) if it strikes balance between national security and competition concerns. Although still in early development stage, Berman bill would return most commercial satellite licensing authority to Commerce from State while incorporating State and Defense Dept. special review process on satellite exports to China.
Korea’s SK Telecom Pres. Pyo Moon-soo and China Unicom Chmn. Yang Xianzu signed agreement to jointly complete commercial build- out of China Unicom’s cdmaOne network, CDMA Development Group reported. Xianzu said China Unicom planned to complete first phase of network by Oct., reaching 200 cities and network capacity of 13.3 million subscribers.
Rep. Berman (D-Cal.) is drafting legislation that would return U.S. commercial satellite export licensing jurisdiction to Commerce Dept. from State Dept. while incorporating State and Defense Dept. special review process on satellite exports to China. Staffer said Berman was gauging potential co-sponsors’ responses before introducing bill, which he said would be finalized at unspecified date.
Nortel won wireless contracts in China valued at $166 million in separate agreements with China Mobile Communications and China United Telecommunications. In $130 million contract with China Mobile, country’s largest wireless carrier will use Nortel equipment to expand its GSM 900/1800 MHz dual band network in Shaanxi province. Network expansion will increase subscriber capacity by 1.5 million to more than 4 million. Companies said system is to begin operating by midyear. Separately: (1) China Unicom awarded $32 million contract to Nortel to expand similar dual band GSM network in Zhejiang and Heilongjiang provinces and Ningbo. (2) Nokia said it reached agreement with Heilongjiang Mobile Communications to supply equipment for its GSM 1800 MHz network in Qiqihaer, city in northeastern China. Companies didn’t disclose terms but said equipment would include mobile switching centers, base stations, base station controllers. (3) Motorola said it signed GSM equipment agreements in China valued at $13 million. Under 2 contracts with China Mobile Communications, Motorola said it would construct its first GSM 1800 MHz network in Heilongjiang province.