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.
In action that will significantly limit number of low-power FM (LPFM) stations to be licensed, FCC released decision Mon. saying LPFM stations must meet same 3rd adjacent channel interference protection requirement as full-power stations. Order implements requirements of rider on FCC appropriations bill signed into law in Dec. Commission expects to complete action on its LPFM licensing window in few months, it said in order, and then will direct Mass Media Bureau to open window to allow LPFM applicants that didn’t meet 3rd channel requirements to try to come into compliance. FCC Chmn. Powell said action allowed Commission to begin granting construction permits for at least some LPFM stations, and agency had begun independent testing to determine impact of LPFM stations on full-power FM stations and translators. As part of order, FCC also implemented congressional mandate that denies LPFM license to former pirate radio operators. FCC Comr. Furchtgott-Roth issued separate statement saying he supported move to implement congressional mandate but believed FCC should have delayed LPFM licensing while it went through rulemaking process in order to comply with Administrative Procedure Act.
Wireless Communications Assn. (WCA) labeled as “outrageous” petition by Verizon Wireless asking FCC to defer action on applications for 2-way services by Multipoint Distribution Service (MDS) and Instructional TV Fixed Service (ITFS) licensees. Verizon filed emergency petition last week, saying pending applications, which Mass Media Bureau is scheduled to grant shortly, shouldn’t be acted upon until decisions are made on additional spectrum for 3G services (CD March 30 p1). WCA said carrier’s request marks “unprecedented attempt to delay the deployment of broadband wireless services that will compete against Verizon’s own DSL offerings and that will provide broadband service in areas where Verizon has not made the infrastructure investment necessary to provide DSL.” WCA ticked off recent FCC notices on 2-way services filing window, which began in Aug. and was cited in agency’s interim report on spectrum for advanced wireless services released in Nov. FCC released final report Fri. providing more details on technical challenges to sharing, segmenting or relocating incumbents in 2.5 GHz occupied by ITFS and MDS operations (CD April 2 p1). “A cynic might say that Verizon deliberately waited until the eleventh hour in hour to maximize the possibility that its filing would indeed disrupt the timely grant of the long-standing applications,” WCA wrote.
Objective of Network Affiliated Stations Alliance (NASA) in seeking FCC inquiry into Big 4 TV networks’ “tactics and practices” (CD March 9 p2) was “not to weaken the networks or the affiliate relationship, but rather to strengthen it,” said CBS TV Affiliates’ Chmn. Ray Deaver, KWTX-TV Waco, Tex. In March 30 letter to affiliates scheduling May 30 meeting of stations in Las Vegas, he cited “a period of strained relations” between CBS and its affiliates, intensified by NASA petition. CBS officials are chagrined they weren’t informed of FCC pleading in advance and said CBS shouldn’t have been included in FCC filing. CBS reacted by saying it’s “no longer possible” to work with current affiliates’ board (CD March 29 p2). In response, Deaver told stations “confidentiality was a high priority” in filing of petition, which had been in works for more than 18 months. And, he said, “it is unfortunate” that CBS “should now be seeking the demise of the current affiliates board” whose members (18) are elected by stations: “We are hopeful that the network-affiliate bond can be restored to a healthier equilibrium… “
Viacom’s attempt to avoid complying with 35% national broadcast ownership cap shouldn’t be allowed by court because it’s procedurally flawed and because court isn’t likely to overturn cap, FCC and Network Affiliated Stations Alliance (NASA) said in separate briefs. Viacom is asking U.S. Appeals Court, D.C., to stay ownership cap, citing court decision voiding 30% national cable ownership cap. Stay would prevent Viacom from having to divest stations by May 4.