Rumors persisted this week that NextWave settlement agreement still was possible, although it now was expected that FCC wouldn’t take lead role in crafting proposal. Potential agreement is being discussed by some NextWave investors and group of re-auction winners that have designated entity status, industry source said. Sources said any industry-only discussions now under way were without participation of Verizon Wireless, largest re-auction winner. Attention has turned to possibility of talks involving other winners that have designated entity status, which would make possible transfer of licenses by NextWave, which is designated entity. However, another industry source said private transaction of that nature still would face regulatory challenges because license-holder such as NextWave must meet certain build-out and other requirements before it’s free to sell licenses without restrictions. “People are trying to hold this thing together,” analyst said. Meanwhile, meeting of FCC, NextWave and winning re-auction bidders scheduled for Tues. morning was cancelled, source said. Companies that won NextWave licenses in re-auction last Jan. asked FCC last week to refund $3.1 billion in down payments that agency had been holding without interest since Feb. Re-auction winners include Verizon Wireless, Salmon PCS, which has financial backing of Cingular Wireless, and Alaska Native Wireless, backed by AT&T Wireless. Leap Wireless spokeswoman wouldn’t comment on whether carrier was part of continued talks with NextWave but said carrier still hoped for settlement.
LAS VEGAS -- CEA and NAB Wed. announced details at CES of long-awaited consumer education program intended to spur adoption of DTV. Pilot program will name 4 cities as Digital TV Zones. Campaign in first 3 -- Indianapolis, Portland, Ore., and Houston -- is to start in late Jan. Each city is in region where all local, network-affiliated stations have made transition to digital broadcasting and there is “strong retail commitment to digital television marketing and sales,” NAB Pres. Edward Fritts said. Campaign in 4th city, Washington, is expected to start later this year. Program (CD April 10 p3) will leverage community and retailer support in each city to provide residents opportunity to see and hear digital TV firsthand, he said. HDTV sets will be placed in high-traffic areas in malls, airports, museums, govt. buildings. “Watch parties” and local station tours will be conducted, Fritts said. As part of campaign, CEA opened new Web site to provide information to public.
LAS VEGAS -- Calling satellite radio “truly new audio format,” XM Satellite Radio said it had fastest rollout of new audio product “in the past 20 years.” Company activated 30,000 satellite radio customers in 60 days since launch of service and sold 34,000 sets, XM Vp-Mktg. Daniel Murphy said at CES here. In session, “Riding the Waves of a New Radio Landscape,” he said XM had “proven the technology and that it works coast to coast and also that consumers will pay for radio service.” Saying company had subscribers in every state, he said retailers reported satellite radio consumers weren’t typical mobile audio customers but were “more like high-end electronics consumers.” Sales data showed interest in all age groups and some vendors reported latent demand for satellite radio home receivers. XM estimated it would add 400,000 to 700,000 new subscribers in 2002.
Electronic Privacy Information Center (EPIC) asked Qwest Jan. 7 to suspend plan to use records of telephone calls for marketing purposes based on opt-out notice provided in most recent billing statement. “We think the plan is unfair and needlessly jeopardizes the privacy of your customers,” EPIC letter to Qwest said. EPIC told Qwest it and 18 other consumer organizations urged FCC to reestablish opt-in standard to safeguard telephone privacy. At least 39 state attorneys gen. also support opt-in policy, EPIC said. Letter asked Qwest to suspend program and “join us in asking the FCC to establish opt-in as a nationwide standard for telephone privacy.”
FCC gave Verizon permission to remove Ill. and Ohio from list of states for which it has to file monthly performance reports as required by Bell Atlantic-GTE merger order. Merger order requires Verizon to report data demonstrating its progress in opening local markets to competitors, using 17 performance measurements. FCC determined state regulatory bodies in Ill. and Ohio had instituted “comprehensive” performance plans, therefore qualifying those states for removal from merger’s reporting requirements. Verizon was informed of action in Jan. 8 letter signed by Carol Mattey, deputy chief of FCC Common Carrier Bureau.
Skybridge hasn’t changed plans to develop broadband satellite network but is pressing forward with new business plan that focuses on leased capacity on existing geostationary satellites rather than building new ones for proposed 80-satellite LEO system, new Pres. Karl Savatiel told us Tues. It was among first public comments for Savatiel, who replaced Pascale Tourisse last month. Tourisse left Skybridge to become pres. of Alcatel. Savatiel denied Jan. 3 report in Wall St. Journal that startup broadband company had shelved plans to develop $6 billion broadband network: “There was no announcement on our part. We want to clarify that.”
FCC set Feb. 19 deadline for comments, with replies March 21, on National Radio Systems Committee (NRSC) report recommending Commission’s adoption of iBiquity Digital in- band, on-channel (IBOC) FM system. IBiquity Pres. Robert Struble said company was “right on target” for commercial introduction of first IBOC receivers year from now at Jan. 2003 Las Vegas CES. Introduction of first IBOC broadcast equipment is expected at NAB convention in April. Meanwhile, iBiquity said at CES in Las Vegas Tues. that it had submitted test data on IBOC AM system to NRSC for evaluation. It said field tests were done at 2 commercial AM stations and one experimental station. Subjective listening tests found IBOC AM sound quality comparable with that of existing analog FM, it said. IBiquity has said IBOC FM system has “near-CD” quality. It also announced new licensing agreement under which Visteon will incorporate IBOC AM and FM reception capability into automotive OEM radios set for availability in time for 2004 model year.
House Commerce Committee ranking Democrat John Dingell (Mich.) called on FCC to investigate AT&T’s recent increase in Universal Service Fund (USF) line-item fee for residential customers, but Chmn. Tauzin (R-La.) is considering congressional action rather than waiting for Commission response. Dingell urged FCC Chmn. Powell in letter dated Jan. 7 specifically to “open the books and records” of AT&T while raising questions whether long distance companies in general were using fee to “gouge” customers. Committee spokesman Ken Johnson said Tauzin “is giving serious consideration to holding congressional hearings” on AT&T decision to raise fees: “He will make a final decision after consulting with [Telecom Subcommittee] Chairman Upton [R- Mich.], but clearly we are very concerned about the impact the fee hike would have on consumers nationwide.”
FCC Chmn. Powell canceled appearance at Consumer Electronics Show Tues. in Las Vegas after being struck with food poisoning, according to show officials. Powell was scheduled to participate in afternoon “dialog” on FCC issues.
LIN TV said it was taking over management of 6 STC (Sunrise) Bcstg. TV stations under 3-year deal. Stations are KRBC-TV (Ch. 9, NBC) Abilene, Tex., KACB-TV (Ch. 3, NBC) San Angelo, Tex., WDTN (Ch. 2, ABC) Dayton, WUPW (Ch. 26, Fox) Toledo, WEYI-TV (Ch. 25, NBC) Saginaw, Mich., and WPRI-TV (Ch. 12, CBS) Providence. LIN said that under FCC duopoly rule it would divest WNAC-TV (Ch. 64, Fox) Providence, which is managed for LIN by Sunrise. CEO Gary Chapman and other LIN TV executives also will be Sunrise officers once agreement is approved by FCC. Sunrise said CEO Robert Smith resigned and it would sell its 2 full-power TV stations and 3 satellites in N.D., which will be managed by Smith until new owner takes over.