Cable industry saw rebound in number of pay units purchased by subscribers in 6-month period ended March 31, according to new statistics compiled by researchers of Warren Communications News’ TV & Cable Factbook. Data gathered on nation’s top 25 cable MSOs showed that number of pay units increased 419,620, up 0.83% from fall 2001, when they had dropped 1.75%. At the time, analysts had attributed drop -- which occurred in April-Sept. 31, 2001 span -- in large part to rough economic conditions, as well as immediate aftermath of Sept. 11 terrorist attacks. Pay units represent add-on channels, such as Showtime or HBO, above basic and expanded basic. Research also found that miles of plant increased 6.15% (to 78,889), largely on buildouts by Time Warner, Cox and Adelphia.
National Emergency Number Assn., Assn. of Public-Safety Communications Officials-International and National Assn. of State Nine One One Administrators recommended to FCC 6-month delay in wireless local number portability (LNP) deadline of Nov. 24. Verizon Wireless has asked FCC to forbear on requirement that wireless carriers implement LNP by Nov. 24 in 100 largest metropolitan statistical areas. Carrier hasn’t sought delay of Nov. 24 deadline for thousand-block number pooling. Leap Wireless and state PUCs have objected to Verizon request, while large carriers have backed either delay or forbearance. Public safety groups said they were concerned only about how LNP implementation could affect E911 service. Besides 6-month LNP delay, groups last week also urged FCC to consider: (1) Requiring wireless carriers to share mobile identification number (MIN) and mobile directory number (MDN) data for 911 purposes. MIN/MDN separation in LNP context refers to network and subscriber elements of cellphone number. MIN is nondialable 10-digit number that identifies subscriber handset and plays signaling role on network. MDN is dialable 10-digit number that is customer’s phone number. (2) Requiring successful 911 testing before wireless pooling/portability implementation. Groups said that in Jan. they had urged FCC to take oversight of wireless LNP/pooling tests to include national requirement for appropriate 911 testing and have carriers provide proof of successful 911 tests before LNP implementation. “As the deadline is now 3 months closer and there has not yet been any successful intercarrier testing of wireless number portability/pooling, we reiterate our request,” groups said. They said wireless subscribers that had pooled numbers should have 911 service comparable with those with nonpooled numbers.
U.S. Appeals Court, D.C., Fri. remanded FCC’s latest reciprocal compensation order, adopted April 27, 2001, to replace earlier one that also had been remanded by court. Court didn’t vacate new order, however, which means it will remain in place for now. This is latest chapter in FCC’s long effort to exempt ISP-bound traffic from Telecom Act’s reciprocal compensation requirements. This time, court said agency erred in relying on Sec. 251(g) of Act to accomplish its purpose.
FCC said it would hold en banc hearing June 24 to discuss issues and views on agency’s proceeding to promulgate new equal EEO rules for broadcasters and cable operators. Comments in rule-making on issue were due April 15, replies May 29. Hearing will include industry professionals from small and large broadcast and cable entities, academicians, trade associations, public interest groups. Hearing will begin at 10 a.m. at FCC hq.
Dobson Communications said it received refund of $91.2 million of nearly $109 million that carrier paid to participate in NextWave re-auction last year. Dobson subsidiary DCC PCS was high bidder on 14 licenses in that PCS auction. Commission on March 27 returned 85% of NextWave re- auction deposits to carriers that bid. Verizon Wireless said earlier this week it had received $1.5 billion of deposits for 216 licenses. It has challenged FCC in U.S. Appeals Court, D.C., and U.S. Court of Federal Claims to obtain rest of deposit and for ruling that auction contract for licenses under dispute is void (CD April 9 p1). Dobson said that as result of partial refund, it had unrestricted cash of $230 million. Carrier plans to announce first quarter results May 8.
With May 1 deadline having passed for commercial TV stations to begin transmitting digital signals (CD May 2 p1), just over 100 stations aren’t doing so and didn’t seek temporary waiver from FCC, by some estimates. Commission official said agency was attempting to determine how many of those in noncompliance were operating under special temporary authority (STA) and thus weren’t required to seek waiver. Official said there were many such stations with STAs, particularly along Canadian border, that had experienced technical problems with their DTV channel assignment. No decision has been made by Commission about what action will be taken against fully licensed TV stations that are found in noncompliance.
House Commerce Committee approved indefinite delay of 700 MHz auctions Thurs., although Chmn. Tauzin acknowledged that Sen. Stevens (R-Alaska) continued to have concerns about any postponement. Tauzin’s bill (HR-4560) would direct FCC to delay upper and lower 700 MHz band auctions now set for June 19 without setting new deadline. But he told reporters after brief markup that he had talked with FCC Chmn. Powell about possibility of one-year delay and indicated he would consider request. That would be enough time for both House and Senate to take legislative action, Tauzin said. Powell has indicated in recent congressional testimony that without new legislation, he was reluctant to flout existing statutory mandates, including requirement to deposit proceeds from Ch. 52-59 auction in U.S. Treasury by Sept. 30. Some of most strident arguments for delaying bidding came from ranking committee Democrat Dingell (Mich.), who repeatedly called previous decisions to hold auctions to raise revenue “asinine” and said keeping June 19 date would result in “another auction debacle.”
Nextel enlisted former N.Y.C. Mayor Rudolph Giuliani Thurs. to provide technical expertise on interference challenges that public safety operators face. Nextel presented White Paper to FCC last fall that outlined plan for reconfiguring 700, 800 and 900 MHz bands to alleviate interference for public safety operators at 800 MHz. Band now is configured largely on interleaved basis, so public safety operators usually are adjacent to commercial or other operators that can cause interference even though they are operating within FCC rules. Nextel said it reached agreement on “strategic alliance” with Giuliani Partners, terms not disclosed. Giuliani Partners is itself alliance of former mayor, several of his senior executives and Ernst & Young. Giuliani, whose popularity in N.Y. soared near end of his term based on his handling of Sept. 11 attacks, includes in firm former Police Comr. Bernard Kerik, former Fire Comr. Thomas Von Essen and former Dir.-Office of Emergency Management Richard Sheirer. Nextel said Giuliani’s firm would contribute “expert advice with regard to the communications needs of public safety authorities.” Giuliani said: “Public safety agencies in many areas of the country are increasingly facing problems with communications disruptions and interference.” That can disrupt interoperability of communications among different emergency responders, he said. FCC adopted notice of proposed rulemaking earlier this year on interference issues raised by Nextel White Paper. Comment period for NPRM closes Mon. Nextel plan has elicited early concerns from groups such as private wireless users, which would be relocated under proposal without reimbursement for moving.
Senate Commerce Committee Chmn. Hollings (D-S.C.) at our deadline was poised to introduce yet another broadband bill, this one aimed at promoting rural broadband development. “With the exception of rural America and underserved areas, there is no broadband deployment crisis in America, notwithstanding the Bell claims,” Hollings wrote in “Dear Colleague” letter. Sen. Breaux (D-La.) has drawn great deal of attention with recently introduced bill that would require FCC to create regulatory parity among all broadband providers in 120 days.
EchoStar said first-quarter loss narrowed to $38.6 million from $169.8 million year earlier as it posted better- than-expected gain in subscribers. Revenue increased to $1.1 billion from $861.9 million. EchoStar added 335,000 net new subscribers in quarter, surpassing analysts’ estimates of 313,000, but down from 460,000 additions year ago. It ended quarter with 7.1 million subscribers, is targeting 8 million by year-end.