U.S. Bankruptcy Court, Newark, N.J., Wed. approved purchase agreement by Network Services of one-way paging assets of TSR Wireless. Judge Rosemary Gambardella also signed off on agreement under which Network Services will manage TSR assets until FCC issues final order transferring licenses to Network Services. TSR filed for Chapter 7 liquidation in Dec., laying off most of its 1,700 employees. TSR had provided pagers, cellular, PCS phones, 2-way radios through resellers, direct accounts and retail stores. Assets acquired by Network Services include local, regional and nationwide 900 MHz frequencies, 1,400 transmitters and telephony switches in 31 states. Transaction also includes subscriber base of TSR. “All TSR Wireless’ remaining employees will be retained,” said Brad Scott, Network Services pres. Initial goal of Network Services is to launch nationwide sales and marketing campaign, he said. Network Services provides paging and messaging services as well as local phone services in 3 states and over Internet.
FCC hopes to take action on CLEC access charges “in the very near future,” Common Carrier Bureau Chief Dorothy Attwood told rural telephone executives attending National Telephone Cooperative Assn.’s annual Legislative Conference Wed. Issue has been “incredibly hard” for FCC, she said. On one hand, CLECs depend on that revenue to finance expansion, she said, and on other hand, long distance companies can’t afford to pay high rates because competition is driving down their end-user rates. “The worst answer is not to resolve [it],” she told group, saying she was aware that some NTCA members had CLEC operations that could be affected by FCC decision.
FCC seeks comments by May 14 on notice of proposed rulemaking (NPRM) that starts process of tapping Ch. 52-59 in 700 MHz band for auction to wireless operators and other providers of advanced services. Reply comments are due June 4 for NPRM that Commission approved this month (CD March 19 p1). Item addresses lower channels in 700 MHz, which must be auctioned by Sept. 30, 2002, and are occupied now by broadcasters who face digital TV deadlines for leaving band. Broadcasters must vacate spectrum by 2006 unless certain service penetration criteria are met. Among issues on which proposal seeks comment are whether agency should consider ways to facilitate DTV transition ahead of deadlines to make spectrum available to successful bidders sooner. NPRM said possible applications for spectrum included mobile wireless, wireless local loop, video and multimedia. Proposal also would allow companies to obtain licenses in that spectrum to provide broadcast services, such as mobile TV. Comment is sought on “whether this broad allocation is appropriate.” FCC requested feedback on whether restrictions on allocation were needed to protect adjacent channel broadcast operations. As example, NPRM asked whether there was need for guard band or separate allocation at lower end of band limited to low-power service because TV channels would remain adjacent to band on Ch. 51. “Alternatively, would the 698-746 MHz band be more useful for fixed services than mobile services in light of the high number of incumbent broadcasters that operate on the spectrum?” On that point, proposal sought comment on whether “fixed services may be more successful than mobile services in structuring their systems to avoid interference with incumbent broadcasters.” Agency asked for comment on appropriate amount of spectrum for each license in 698- 746 MHz band, specifically whether it should be licensed as single 48 MHz block or in smaller increments.
Because of “events of the past several weeks,” CBS told its TV affiliates late Tues. that “it’s no longer possible for us to work effectively with the current affiliate advisory board.” In letter to affiliates and group heads, Peter Schruth, CBS pres. of affiliate relations, said “it’s quite evident… that for some time now the [affiliates'] advisory board has not performed its primary function, that is to advise… the network and the affiliate body.” Therefore, he said, CBS in future will work “with the entire affiliate body to reformulate an appropriate advisory group that will foster the kind of communication [between stations and network] we all have every right to expect and require.”
Ultra wideband (UWB) developers took exception Wed. to request by broad group of wireless, GPS, satellite radio and air transport interests that FCC issue further notice of proposed rulemaking on UWB before final rule. Group of 26 companies and trade associations sent letter late Tues. to FCC Chmn. Powell, contending it would be premature for agency to release final rule before putting out further notice that would allow for comment on research, specific regulatory language (CD March 28 p1). “We don’t believe there needs to be a further notice,” said Jeff Ross, vp-corporate development and strategy for UWB developer Time Domain. Process that Commission has undertaken so far to evaluate UWB technology has been “comprehensive” and has included more than 550 filings in docket on proceeding, Ross said. “It’s been an exhaustive record.” Request for further notice made this week “is just a tactic to delay,” Ross said. In part, Ross took exception to contention by groups that studies have yet to be completed, although he agreed NTIA has indicated there are several receivers it still must test as part of evaluation of UWB devices in GPS bands. He also disagreed with point made by groups that NPRM issued last May didn’t contain specific enough details on regulatory language to give interested parties adequate grounds to comment. NPRM addressed Part 15 power levels with specific spectral emission mask and addressed absolute and peak power levels. “I don’t see how that is inadequate notice,” he said. Washington attorney Henry Goldberg, who represents UWB developer Fantasma Networks, also called letter “delaying tactic,” although he said concerns related to testing in GPS bands are “reasonable.” Much less concern exists over UWB operations in non-GPS frequencies, he said. (Fantasma’s technology is designed to operate in non-GPS bands). One possible Commission response is to divide proceeding between UWB operations in GPS and non-GPS spectrum, so that operations of companies using bands in latter group wouldn’t be complicated by GPS-related concerns, Goldberg said.
Rumored sale of GE Americom to SES Astra of Luxembourg was announced Wed. at Grand Hyatt Hotel at Satellite 2001 (CD March 7 p5). Companies said newly formed SES Global acquired total control of GE Americom stock and other assets for $2.7 billion in cash and 15.4 million shares in SES Global. Analysts estimated total value of deal at $5 billion. GE will have 25.1% economic interest and 20.1% voting interest in SES Global. In return, SES Global will acquire SES Astra in 1-to-1 exchange involving cash and stock swap worth $1.4 billion. GE Americom had revenue of $510 million last year. Combined assets of companies will create world’s largest satellite services provider with pro forma revenue of $1.26 billion for 2000, analysts said. It’s 2nd sale in as many days of major U.S. satellite operator as consolidation of industry continues.
FCC set deadlines Wed. for comment on its proposed rulemaking on DTV must-carry issue, following publication of notice in Federal Register. Commission tentatively concluded in Jan. against imposing dual-carriage obligations on cable operators during current digital broadcasting transition but left issue open for final determination. Comments are due May 10, replies June 25.
Dean Ferris promoted to exec. vp-labor relations, News America… Bill Taylor, ex-ePod, named senior vp-sales, Space.com… Pieter Winters, Fokker Space, appointed dir.- technical and operational support, European Space Agency Council… Mark Rubin, ex-FCC Wireless Bureau, named dir.-federal govt. relations, Western Wireless Corp… John Kelly promoted to senior vp-ad sales, CNBC… Maura Colleton, ex-MCI WorldCom, joins Qorvis Communications as managing dir., concentrating on technology public affairs.
ALTS told FCC that Verizon was overcharging competitors for electricity to operate colocated switching equipment in Verizon central offices. In filing Tues., ALTS asked Commission to require Verizon to lower its rates. It said that Conversent Communications had made similar request in March 6 letter to FCC and that Cavalier Telephone was battling Verizon over same issue before Pa. PUC. ALTS Pres. John Windhausen said Verizon charged “blatantly discriminatory power rates.”
Broad group of wireless, GPS, satellite radio and air transport interests urged FCC not to take final action on operation of ultra wideband (UWB) equipment under Part 15 rules without issuing further notice of proposed rulemaking (NPRM). In letter sent late Tues. to Chmn. Powell, 26 companies and trade groups stressed it would be “premature and inappropriate for the Commission to adopt any final rules at this time.” Agency issued NPRM on UWB operations last May (CD May 11 p1), but it didn’t contain specific regulatory language, group said. Since then, FCC has received large volume of test results on potential interference of UWB operations in both GPS and non-GPS bands. “However, the interested parties cannot logically extrapolate from the various test submissions any comprehensive picture of the direction of the Commission’s final thinking with respect to a potential regulatory framework,” group said in letter obtained by Communications Daily. Companies signing letter include AT&T Wireless, Lockheed Martin, Nortel, Qualcomm, Satellite Industry Assn., U.S. GPS Industry Council, WorldCom.