FCC Common Carrier Bureau Accounting Safeguards Div. cancelled meeting scheduled for April 10 on policies and procedures for independent audits used to evaluate compliance with Commission rules. Cancellation was due to scheduling problem and meeting will be rescheduled -- Anthony Dale, 202-418-2260.
Citicasters is subject to $14,000 fine for broadcasting indecent language on KEGL(FM) Ft. Worth, FCC Enforcement Bureau said. Complaint included transcripts and pictures taken from station’s Web site.
Major telecom companies and satellite interests are expected to challenge plan proposed by ICO-Teledesic Chmn. Craig McCaw to allow him to develop terrestrial cellular service using radio spectrum reserved for satellite systems. New ICO first offered hint of plan in unpublicized March 8 letter to FCC Chmn. Powell that suggested New ICO, which recently emerged from bankruptcy, would have to fold without substantial new spectrum approval from U.S. and global regulators (CD March 15 p3). Satellite rivals question whether proposed plan by New ICO will attract enough new customers to drive rates down far enough so price of phones also drops. If prices fall, McCaw believes satellite operators could make better use of spectrum and subsidize cost of building network for rural services, which is major priority at Commission. However, cellular carriers are expected to balk at plan because many of them had to pay for their spectrum at auctions and they believe ICO proposal would seem to give away valuable spectrum free to telecom competitors.
Granting Viacom delay in complying with broadcast ownership limits would violate public’s First Amendment right to diverse quality information, said Consumer Federation of America and United Church of Christ in joint brief to U.S. Appeals Court, D.C. (CD April 3 p4). Public’s First Amendment rights “compete” with Viacom’s claimed rights, they said. Interim relief from cap could last for years while FCC considered remanded ownership caps, filing said, and that would “forc[e] the public to endure for an indefinite period concentration within the media on a scale the FCC determined is contrary to the public interest… and which Congress has determined is generally contrary to the public interest.” Groups also said Viacom was unlikely to succeed in final decision, based on merits of its arguments, and company hadn’t met procedural requirements.
Diane Cornell, assoc. chief of FCC Wireless Bureau, leaves after 13 years to become vp-regulatory policy, CTIA… Domingo Goenaga promoted to pres.-CEO, General Cable, Europe, and senior vp, General Cable Corp… Changes at BroadCloud: Ben Holcomb, ex- BellSouth, named board member and interim vp-sales & mktg.; Chere Heintzmann, ex-AT&T Wireless, appointed exec. vp-operations and carrier relations… Daniel Barnathan, ex-ABC, appointed exec. vp- portal sales, Medscape… Louis Di Gregorio, ex-Universal Broadband Networks, named vp-network engineering, Norstar Communications… John Scelfo, ex-Dell, appointed CFO, Sirius Satellite Radio… Jamie Dos Santos, ex-Telcordia International, named senior vp-global sales, TerreNAP Data Centers, Terremark… Changes at Telephia: Arde Farbod, ex-IBM, appointed chief technology officer; Michael Mowery, ex-AirTouch Communications, named gen. counsel… Changes at Leslie Harris & Assoc.: Jill Bond adds vp-strategic initiatives to managing dir. title; Jon Bernstein, ex-FCC Office of Legislative & Intergovernmental Affairs, named vp-govt. affairs; David Evans, ex-office of Sen. Boxer (D-Cal.), appointed senior policy assoc… Latham & Watkins promotions to partner: Carlos Alvarez, Kim Boras, Karen Brinkmann, Steve Levine, Robin Struve, Marcellus Williamson… Cari Davis advanced to exec. vp-Devlin Video International.
Hastening telecom policy reform is critical to restoring robust U.S. economy, House Commerce Committee Chmn. Tauzin (R-La.) said in Progress & Freedom Foundation paper released Tues. Tauzin reiterated position that FCC was “anachronism” and that Congress should have revamped agency in 1996 when it wrote Telecom Act. He said telecom and energy policy reform was needed “to make a huge difference in whether we can enlarge upon this economic expansion or whether we see the fear of a real economic downturn in the economy.”
Publishers who own TV stations were prime movers behind affiliates’ petition to FCC calling for inquiry into Big 4 TV networks “illegal” activities (CD March 9 p2), NBC Pres. Robert Wright said at “Big Picture” conference in N.Y. He charged NAB (which isn’t party to affiliates’ FCC filing) had been “captured” by “publishers” who own TV stations. “They are the drivers of NAB,” Wright told us later. Affiliates, he said, want their relationships with Big 4 networks to return to “gold standard” days of yore but NBC doesn’t have same assets (with several cable networks now) and doesn’t operate same way it did 20 years ago. News Corp. Pres. Peter Chernin called affiliates’ filing “clearly unfortunate” but had no comment on Wright’s statement.
FCC proposed total $1 million in fines against 2 affiliated long distance companies NOS Communications and Affinity Network Inc. (ANI) for apparently engaging in unfair and deceptive marketing practices. Commission said that since 1997 it had received 900 consumer complaints against NOS and ANI alleging misleading advertising and “bait-and-switch” tactics. After investigation, FCC said it based fines on companies’ practice of sending consumers marketing materials that didn’t clearly disclose advertised “cents-per-minute” rates were limited to 2-month promotion. It said companies failed to disclose clearly that following promotional period, rates would be calculated using complex formula based on cents per “total call units.” Total call unit formula often resulted in rates double advertised cents-per- minute rate, Agency said. ANI, which also conducts business as Quantum Link Communications and Horizon One Communications, is based in L.A.; NOS is Md. corporation with principal office in Las Vegas. Companies have 30 days to pay or appeal fine.
Carl Geppert, ex-Andersen, named partner, KPMG… FTC Gen. Counsel Debra Valentine resigns at end of April to return to O'Melveny & Myers… Named to BroadStreet Communications board: Ex-FCC Comr. Andrew Barrett, U.S. Robotics founder Casey Cowell… Rick Grant, ex-Lighthouse Digital Systems, appointed chief technology officer, Sierra Video Systems… Michael Norris adds chmn. to pres.-CEO, Next Level Communications, replacing Pete Keeler, who remains board member… John Doherty, ex-USA Networks, appointed vp-advertising sales, eastern region, Lifetime TV… John Dyer, Cox, elected to CTAM board, replacing Maggie Bellville, resigning… Added to BroadRiver Communications board: Stephen Van Beaver, Road Runner, and Kevin DeNuccio, Cisco… Eddie Dalva, ex-VH1, moves to senior vp-programming, co-productions & creative affairs, VH1 and Country Music TV… Terence McGuirk, Turner Bcstg. System, elected to Scientific-Atlanta board… Brad Turell promoted to exec. vp-communications, Turner Bcstg. System.
NCTA defended cable efforts to create new retail market for competitive digital cable set-top boxes in ex parte filing at FCC. In letter sent Mon. to Comr. Ness, NCTA quoted from recent TechTrends market research report that indicated that “cable operators will begin to adopt new customer acquisition strategies, such as establishing a retail presence,” in next year. In recent meeting with Ness and her staff, Sharp executives referred to that study, arguing that it showed retail market for digital cable boxes wouldn’t develop until at least 2002 (CD March 29 p8). NCTA’s response said study “also discusses how the emergence of leading consumer electronics companies, such as Philips, Sony, Pioneer and Panasonic, are expected to radically alter the competitive and distribution landscape for digital cable set-top boxes.” For example, TechTrends predicted that Panasonic and Philips combined would account for one million of the 3.7 million digital set-tops that top MSO AT&T Broadband was expected to deploy this year, with Motorola accounting for other 2.7 million.