In cases where enforcement of ban on cross-ownership doesn’t promote goals of increasing competition in marketplace, waiver of rules will be entertained, FCC said in granting petition for waiver filed by Michael Sovern, member of AT&T board and trustee of Educational Bcstg. Corp. (EBC), licensee of noncommerical educational station WNET (Ch. 13) N.Y.-Newark. He said WNET’s predicted Grade B contour overlapped Cablevison systems (serving N.Y.C. metropolitan area) in which AT&T had 33% noncontrolling stock interest, with 8.9% voting interest. Sovern said he sought waiver of cross-ownership rules because of his attributable interest in both WNET and Cablevision. Neither he nor AT&T has authority to direct programming decisions of Cablevision, he said. Also, with AT&T’s acquisition of MediaOne, it acquired 25.5% noncontrolling interest in Time Warner Entertainment, whose cable systems also overlapped WNET contour. But since WNET is noncommercial, it wouldn’t compete with other broadcast stations carried on Cablevison or Time Warner cable systems, he said. Commission said it has determined that waiver of TV cable cross- ownership rule is particularly appropriate where TV stations involved are noncommercial.
FCC denied separate petitions for reconsideration filed by American Mobile Telecommunications Assn. (AMTA) and Petroleum Communications on order that implemented new licensing system for 800 MHz specialized mobile radio (SMR) service. For upper 200 channels of band, agency replaced site-specific and frequency- specific licensing with geographic-based system. FCC granted licenses awarded through competitive bidding in upper 200 channels right to relocate incumbents to comparable spectrum elsewhere in band. Economic areas were created as licensing areas for lower band channels. AMTA had asked FCC to reconsider decision on timing of Economic Area (EA) licensee payments to incumbents who were relocated involuntarily. Group wanted EA licensees to have to make progress payments to incumbents if they requested this during relocation process. Agency had denied previous request by AMTA and PCIA, deciding payment of relocation costs shouldn’t be due until incumbent was fully relocated and frequencies were clear. “However, because we anticipate that EA licensees will bear most relocation costs directly we believe that it is equitable for the incumbent to be repaid for any remaining costs that it has incurred after relocation has occurred,” FCC said in order released Fri.
Stewart Verdery, ex-office of Senate Majority Whip Nickles (R-Okla.), named staff dir., Senate Republican High-Tech Task Force… Preston Lewis, ex-HBO, named dir.-mktg. and retail, MTV… Changes at A&E: Barbara Rubin, ex-Rysher TV, appointed vp- legal and business affairs, new West Coast office; Sal Petruzzi, ex-Dan Klores Assoc., named dir.-public affairs… Gary Levine, ex-Icebox, named exec. vp-original programming, Showtime Networks, replacing Mark Zakarin, who remains consultant and will write pilot scripts… Reelected on Universal Service Administrative Co. board: Frank Gumper, Verizon, chmn.; Allan Thomas, Ia. Utilities Board, vice chmn.; Cheryl Parrino, CEO; Edwin Eichler, Pigeon Telephone, secy.; Anne Bryant, National School Boards Assn., treas.; Scott Barash, gen. counsel, asst. secy.; Robert Haga, vp-operations, asst. treas… Named partners of Tongour Simpson: James Green, ex-Patton, Boggs and FCC; Brad Holdsclaw… Promotions at Lifetime: Kelly Abugov to senior vp-programming, Marian Effinger vp-reality programming, Paul Noble to vp-film acquisitions and scheduling… Changes at American Assn. of Ad Agencies board: Brendan Ryan, FCB Worldwide, named chmn.; Kenneth Kaess, DDB Worldwide, vice chmn; Marsha Lindsay, Lindsay, Stone & Briggs Advertising, secy.-treas. Named dir. at large: Susan Gianinno, Transatlantic and D'Arcy; Anthony Hopp, Campbell- Ewald; William Whitehead, Bates Advertising.
U.S. Appeals Court, D.C., sided with FCC Fri. on its 1999 ILEC pricing flexibility order, rejecting challenge by long distance providers such as AT&T, Time Warner Telecom, WorldCom. Decision written by Judge David Sentelle concluded that long distance carriers’ objections to colocation thresholds set by agency in order “are no more than policy differences with the Commission.” Decision said FCC must provide rational basis when setting such standards, “but it is not held to a standard of perfection.” Court ruled Commission made reasonable decision that colocation was “a sufficient proxy for market power” in ascertaining whether to grant LECs such pricing flexibility.
FCC is seeking comment on petitions filed by entities that seek declaratory ruling under Sec. 310(b) of Communications Act that it would be in public interest to allow Deutsche Telekom (DT) to have indirect ownership interest of greater than 25%. Indirect ownership interest would be result of consummation of proposed merger of VoiceStream and DT that’s pending before Commission. Petitions include one filed by Cook Inlet/VoiceStream GSM ventures on giving DT indirect ownership of up to 49.9%. Cook Inlet/VS GSM IV PCS and Cook Inlet/VS GSM V filed petition last fall. Petition also was filed by various Cook Inlet and Omnipoint entities. Third petition, by Wireless Alliance, said it would be in public interest that DT have indirect ownership interest of up to 30%. Similar filing was made by Iowa Wireless Services Holding proposed indirect DT ownership interest of 38%. Final petition, by Eliska Wireless Ventures License Subsidiary, proposed 49.9% indirect equity interest. FCC said it already had granted petitions for declaratory ruling for 2 petitioners -- Cook Inlet/VoiceStream PCS and Eliska and wasn’t seeking comment on those cases. Comments are due Feb. 22, replies March 8.
Mo. PSC told SBC Thurs. that if it wants agency’s endorsement for its Sec. 271 interLATA bid, it must address list of Commission concerns on interconnection pricing, access to operation support systems, network unbundling. PSC acted after discussions Wed. with SBC and CLECs. PSC didn’t vote on application, but told SBC that without more information than was contained in current record, it couldn’t recommend that FCC approve SBC’s long distance entry.
Washington communications law firm has advised its clients to expect “substantial changes in personnel among FCC staff” following elevation of Comr. Powell to chmn. Firm said “several of the bureaus have become much politicized” under most recent Chmn. Reed Hundt and William Kennard, “including Wireless, Cable and Common Carrier, where we would expect major changes. The Mass Media Bureau has been affected, but to a lesser extent. The Enforcement Bureau has been headed by a professional since its inception and we do not expect any changes there… All this presages shifts in both policy and attitude at the FCC” (CD Jan 24 p2). Roy Stewart has been chief of Mass Media since Oct. 1989 and told us he expects to remain -- subject to will of Chmn. Powell.
Corrections: Judy Walsh is Tex. PUC member being considered for appointment to FCC -- not Judy Marsh… Phil Becker, not Becket is vp-product development, Corvis (CD Feb 1 p8).
Promotions at FCC Comr. Furchtgott-Roth’s office: Rebecca Benyon to senior counsel, Bryan Tramont to senior legal advisor… Promoted to senior dir. at NCTA: David Pierce, dir.-public affairs, and Richard Cimerman, dir.-state telecom policy… Added as members Verner, Liipfert, Bernhard, McPherson & Hand shareholders board: Michael Berg, Marla Grossman, Julian Shepard, David Siddall… Changes at Terra Lycos: Robert Davis resigns as CEO, becomes nonexec. vice chmn.; Theodore Philip, CFO, moves to senior vp-strategic planning and mergers and acquisitions; Elias Rodriguez-Vina, ex-GE Capital Europe, named CFO… Judith Harris, ex-Discovery Communications, appointed exec. vp-PBS Businesses… Changes at Advanced Wireless Systems board: Resigned: Monte Julius, Demetrios Tsoutsas and David Schlueter; elected: Stanley Wilson, pres., who becomes chmn.; Thomas Howard, CFO; Jeffrey Schneider, pres.-RAP Group… Michael Kwan, Qingdao Telecom Systems, moves to COO, Lucent’s China operations… Judith Carlough, ex-Broadcastspots.com, named vp-advertiser services, Arbitron Web cast ratings division… Erin Hand advanced to dir.- learning & talent development, Cox… Carl Harnick, ex-Ernst & Young, elected to Classic Communications board… Suzanne Hutchings promoted to senior regulatory counsel, Teledisc… Christine Castro advanced to vp-corporate communications, Disney… Richard Turner promoted to vp-business affairs, programming, Starz Encore Group.
LOS ANGELES -- Loral Space & Communications is refocusing its broadband strategy and won’t compete with Hughes and others for consumer market, Chmn. Bernard Schwartz told Carmel Group DBS conference here. He said Loral would focus on its core competencies of satellite hardware manufacturing and providing services because it now realized that best role for company and its shareholders would be to stick to its core competencies of acting as “merchant/supplier” and letting others deal with difficult task of pricing and consumer acquisition.