FCC allowed Motient and TMI to transfer space and earth station licenses to Mobile Satellite Ventures (MSV) joint venture. Commission said authorizations would allow Motient and TMI to develop Canadian-American regional mobile satellite service. Motient will own 48.1% and TMI 39.9% of new company. Other owners are Columbia Capital (3.8%), Spectrum Equity Investors (3.8%), Telecom Ventures (4.3%). Non-U.S. entities hold ownership interests in Motient, TMI, Columbia Capital and Spectrum Equity Interests. Request to launch and operate next-generation satellite system, along with waiver to deploy terrestrial base stations, will be considered in another proceeding. Petitions by Dept. of Justice (DoJ) and FBI were granted to condition authority based on compliance of agreement with DoJ and FBI on law enforcement, national security and public safety issues. Commission also held that public interest wouldn’t be served by prohibiting proposed indirect foreign ownership of MSV in excess of 25%. Foreign ownership may be as high as 45%, applicants said. FCC also dismissed as moot petition to deny filed by Deere & Co. Satellite systems of TMI and Motient are linked and jointly secured. Motient offers land, maritime and aeronautical mobile satellite services (MSS) in upper L-band in contiguous U.S., Alaska, Hawaii, Virgin Islands. Motient received license in 1989 and launched first satellite in 1995, beginning service following year. TMI is subsidiary of BCE of Canada. It operates L-Band MSS system via MSAT-1 satellite. In last 2 years, Commission has granted TMI blanket earth station licenses to provide MSS to mobile terminals located in U.S.
Although attendance is expected to be down 35-38% and few programmers will be exhibiting on floor, organizers of this year’s Western Cable Show say industry executives need to gather to “regroup and regain momentum” for coming year. Flagging economy and Sept. 11 terrorist attacks prompted many programmers to cut back or cut out altogether their presence at Western Show (CD Oct 22 p2). Reacting to that environment, host Cal. Cable TV Assn. -- soon to be renamed Cal. Cable & Telecom Assn. -- decided to focus instead this year on interactive technology, allowing companies with new products perhaps better prospect of gaining attention. Organizers also are stressing high profile MSO speakers, including Adelphia CFO Timothy Rigas, AOL-Time Warner CEO Glenn Britt, new AT&T Broadband CEO William Schleyer, Charter CEO Carl Vogel, Cox Enterprises CEO James Robbins, Insight Communications Pres. Michael Willner, Mediacom CEO Rocco Commisso. CCTA 34th annual convention, titled “See Change!,” will be held Tues. through Fri. at Anaheim Convention Center.
ABC affiliate KEZI (Ch. 9) Eugene, Ore., and network have submitted vastly different versions of negotiations between them in network’s refusal to permit station to air ABC’s prime-time programming 7-10 p.m. in order to add 30 min. of local news and syndicated programming. In unsigned ex parte presentation to FCC last week, ABC said KEZI hadn’t sufficiently researched issue and that earlier prime-time start would harm both station and network “in the long run.” Fact that ex parte letter was unsigned is one of things KEZI plans to challenge at FCC.
FCC clarified its payphone compensation rules Wed. to emphasize that “only calls that are answered by the called party are ‘completed,’ and thus compensable.” Rules involve method for compensating payphone service providers (PSPs) when coinless calls are handled by switched resellers. FCC had said that facilities-based interexchange carrier (IXC) that first handles call has to act as intermediary, getting compensation from resellers and paying PSPs. (IXC is basically long distance carrier.) However, there had been dispute over whether IXCs should collect payment for all calls or just for those calls that were answered by called party. FCC opted for latter. “We find that AT&T’s practice of compensating PSPs… for all calls sent to a [reseller], regardless of whether such calls are completed, is inconsistent with the Commission’s policies and rules.” Agency also denied WorldCom petition that sought a ruling “that a completed dial-around call is defined as one that is completed on the underlying carrier’s network, or one that is handed off to a [reseller’s] customer that does not have prior agreements with all PSPs to pay compensation.” FCC said it’s possible to tell difference between completed and uncompleted calls and some carriers have been able to do such “tracking.” Some IXCs have said it’s “technically infeasible to track a call to completion once it is routed to [reseller’s] switching platform,” FCC said. “Even if true, we find that there are other options available to these IXCs to track or arrange for the tracking of coinless payphone calls,” agency said in order.
Research shows there’s more telecom competition in areas without limits on CLEC use of unbundled local switching, Z- Tel said in letter Wed. to FCC Chmn. Powell. Study Z-Tel submitted to FCC said CLECs would serve 60% more customers in restricted states if unbundled local switching were made fully available to them. “The impact is more pronounced in many states -- for example, the study predicts that CLECs’ market share of mass-market consumers in the state of Maryland would be 175% greater if the restriction did not apply,” Z-Tel said. “In areas where unbundled local switching is not available, CLECs are clearly impaired in their ability to serve mass market, residential and small business consumers.” FCC is expected to revisit its unbundling rules as part of triennial review. At issue are limits placed on use of unbundled switches in top 50 Metropolitan Statistical Areas.
When 10 of the world’s biggest movie studios, broadcasting and cable networks banded together earlier this month to sue Sonicblue (CD Nov 1 p1), their goal wasn’t simply to stop potential copyright infringement. They also are seeking to stop Sonicblue and its new personal video recording (PVR) device, ReplayTV 4000, from reshaping entertainment industry as it’s known today. In legal filings and interviews, plaintiffs said they feared that ReplayTV 4000 could undermine advertising that’s foundation of their businesses. PVR has 2 features that have brought wrath down upon corporate parent Sonicblue: (1) It can skip commercials. (2) It allows users to transmit broadcasts and movies to up to 15 other people through broadband connection.
Mo. PSC staff reversed its Oct. recommendation on amount of regulation that should be put on SBC’s long distance services in state and said it now recommended that Southwestern Bell Long Distance and SBC Long Distance be minimally regulated as competitive long distance carriers. Staff also recommended PSC grant intrastate certificates to SBC units and approve their initial long distance tariffs. Staff in Oct. had recommended SBC units be classed as noncompetitive carriers because they had “opportunities” for potential cross-subsidization of their long distance rates. SBC objected strongly, saying hobbling its units with lengthy tariff reviews and cost-support requirements would thwart their ability to compete against minimally regulated rivals. SBC said there was no factual basis for singling its long distance units out for “disparate” regulatory treatment. Upon further review, PSC staff concluded FCC affiliate rules plus PSC’s ability to suspend and review tariffs upon staff or competitor complaint would be adequate safeguard against below-cost pricing. Long distance units propose residential rates of 6-12 cents per min. and business rates of 8.5-12 cents, depending on calling plans or contract terms. With intrastate access charges at 5.5 cents per minute, PSC staff said proposed rates weren’t below cost. Agency said it would rule on units’ certification and tariffs soon after Nov. 26 effective date of FCC order allowing SBC to provide long distance in Mo. and Ark. PSC had hoped to conclude matter before Thanksgiving, but its review was delayed while it looked into AT&T complaint that proposed rates would constitute predatory pricing. AT&T subsequently withdrew complaint, saying PSC procedural schedule was too compressed to provide adequate opportunity to be heard.
Without comment, FTC has cleared NBC’s takeover of Telemundo Spanish-language network and its 10 TV stations for $2.68 billion (CD Oct 12 p7). Telemundo, based in Fla., is owned jointly by Sony and Liberty Media and deal still is awaiting FCC approval.
Complying with U.S. Supreme Court mandate, FCC Wed. announced it had repealed its rule requiring that “sexually explicit adult programming” on cable be scrambled. At same time, agency terminated pending rulemaking (CS Doc. 96-40) to implement rule declared unconstitutional last year by Supreme Court. Playboy Entertainment Group had challenged rule in U.S. Appeals Court, D.C., which ruled it violated First Amendment. FCC then was unsuccessful in asking Supreme Court to overturn lower court ruling. Saying alternatives for parents to protect children from such programming were “woefully inadequate,” Comr. Copps called on agency to begin new rulemaking, consistent with court ruling, “to determine how… we can protect children from being exposed to sexually explicit programming without their parents’ knowledge.”
FCC issued notice of proposed rulemaking (NPRM) Wed. that seeks comment on potential rule changes that could streamline wireless services applications that affect “quiet zones.” Those zones are defined as areas where radiation must be restricted to minimize potential impact on radioastronomy operations or other facilities that are “highly sensitive” to interference. NPRM said changes under study would balance protection of quiet zones from interference. Facilities covered by notice include National Radio Astronomy Observatory site in Green Bank, W.Va.; Naval Radio Research Observatory in Sugar Grove, W.Va.; Commerce Dept. research labs in Boulder, Colo., and FCC field offices used for monitoring activities in 13 states. Initial staff report on 2000 biennial review indicated that current FCC quiet zone rules added “excessive” time to process of obtaining approval for some wireless facilities. Comments are due Jan. 22, replies Feb. 6.