Verizon is now 4th largest long distance company in U.S., having just hit 5 million customer mark, Co-CEO Ivan Seidenberg said Mon. at Credit Suisse First Boston conference in N.Y. He said company was aiming for 6.4 million by end of year as it gained Sec. 271 approval in more states. Current customer base includes former GTE states and N.Y. where it won Sec. 271 entry year ago. FCC action is expected soon on Mass. application, and Verizon plans to file applications for N.J. and Pa. soon, he said. Seidenberg also told investors that Verizon was on track to meet financial targets announced in Feb., including revenue growth in 8-10% range for year and similar gain in earnings per share. He said company’s predictions were conservative because they already factored in soft economy. On wireless side, company now has 27.5 million customers, with 50% of them using digital technology. Seidenberg predicted that regulatory environment would go through “enormous changes” with new Administration and new FCC Chmn. Powell. He said he expected Powell to go from old FCC’s habit of “managing market share and picking winners and losers” to “letting the marketplace pick winners and losers.”
Spanish-language Telemundo TV Network is using FCC procedures in effort delay debut of Azteca America as 3rd U.S. Hispanic network, official of Azteca said. Comment was in response to Telemundo petition -- charging potential interference to existing stations -- to Commission to reconsider staff grant of Pappas Telecasting’s purchase of CP for Ch. 54 KIDN-TV Avalon, Cal., in L.A. market, to be affiliate for Azteca America. Planned network is co-owned by Pappas and Azteca Mexico and plans late-spring start. L.A. affiliate is “critical” to its success, Azteca said.
Decision by U.S. Appeals Court, D.C., to apply strict scrutiny to FCC EEO rules “creates a substantial conflict in the case law,” Minority Media & Telecom Council and People for the American Way said in joint petition for rehearing (CD March 5 p9, Jan 17 p1). Petition said other courts had said repeatedly that such programs weren’t subject to strict scrutiny because they didn’t create racial preference. FCC made it clear in its rules that race or gender shouldn’t be basis for hiring decisions, petition said: “The FCC made it clear that it would use applicant pool data merely as an indicator that broad outreach has been achieved.” Minority groups also disputed Appeals Court ruling that they said “simply assumes that Option B makes non-minorities into victims of discrimination.” Petition seeks either rehearing or en banc hearing.
In case closely watched by satellite TV industry, U.S. Appeals Court, D.C., quizzed lawyers on both sides Mon. over FCC rules that preempt landlords, building managers and homeowner groups from blocking renters from installing DBS dishes and other types of TV antennas. Hearing oral argument in case, panel of 3 judges particularly grilled attorneys for Building Owners & Managers Assn. International, which brought suit against govt.’s regulations for over-the-air reception devices (OTARD). While judges also questioned attorneys for FCC and DirecTV, they directed most of their attention to building owners and wondered aloud why they hadn’t taken complaints about OTARD rules and supporting statutes to other forums. They also asked why landlords didn’t simply raise their rents to cover cost of alleged “physical taking” of their property and interference with their contractual relationship with tenants.
White House reportedly is nearing announcement of nomination of Tex. PUC Chmn. Pat Wood as head of Federal Energy Regulatory Commission (FERC). Wood had been rumored to be up for appointment by President Bush to fill Republican slot on FERC or FCC. Reports last week indicated Wood now was expected to be named FERC chmn. “We've had many inquiries,” said Tex. PUC spokesman, who declined to comment on reports. “We've had nothing new out of Texas.”
American Cellular, venture owned equally by Dobson Communications and AT&T Wireless, plans private offering of $450 million in senior subordinated notes due 2009. Dobson said American Cellular would use proceeds to pay down debt and to fund first 4 interest payments due on notes. In recent FCC filings, Dobson subsidiary said it had signed agreement with AT&T Wireless to transfer certain PCS licenses it won in recent C-block auction to joint venture (CD March 5 p6).
Aspen Law & Business published 2001 supplement to Federal Telecommunications Law, authored by Peter Huber, Michael Kellogg and John Thorne. Supplement updates 1999 reference book on Telecom Act implementation with more current information on issues such as unbundling of network elements, Bell competition in long distance markets, CALLS plan. Supplement is very comprehensive and clearly written although it has slightly pro-Bell slant, for example referring to FCC unbundling rules as going beyond Act’s intent. Kellogg and Huber are partners in law firm that represents Bells; Thorne works for Verizon -- 800-638-8437.
Head of National Telephone Co-op Assn. (NTCA) urged President Bush to appoint FCC members who would take rural interests into consideration. In March 2 letter, NTCA CEO Michael Brunner said it was not enough “to designate a ‘rural commissioner’ in name only as has been the case in the past.” There’s been no shortage of qualified commissioners and staff dedicated to Telecom Act’s competitive principles, he said. “Unfortunately, the same cannot be said with regard to their commitment to the Act’s dual mandates of ensuring sufficient universal service support and comparable services available to both rural and urban America.” There needs to be balance between competitive principles and rural needs, he said.
Sirius Satellite Radio last week rebutted concerns raised by AT&T Wireless (ATTW) that Project Angel could be hampered by interference from high-powered repeaters that satellite digital audio radio (DARS) operators plan to use. Sirius disputed ATTW claim in earlier ex parte filing (CD Feb 28 p1) that “mandating multiple 2 kw repeaters to mimic the coverage of 40 kw repeaters would reduce interference.” AT&T, which is using Wireless Communications Services (WCS) licenses to deploy fixed wireless broadband Project Angel, said it didn’t object to low-power repeaters at or below 2 kw. Company and other WCS licensees have raised concerns about interference on 40 kw terrestrial repeaters that satellite DARS operators could use to fill in gaps in satellite coverage. “ATTW has known since the time it acquired its WCS spectrum that it would have to operate without causing interference to satellite DARS,” Sirius told FCC. “ATTW conveniently forgets that its service rules were changed to protect satellite DARS transmissions and that these restrictions reflected the fact that the Commission designed WCS to protect satellite DARS, not the other way around.” Sirius contended ATTW misrepresented record by telling FCC plans for high-power repeaters were new “and justify late intervention in this proceeding.”
Twelve key lawmakers backed owners of broadcast programming in letter to FCC on copyright protection technology required in cable set-top boxes. They criticized “5C” standard proposed by Digital Transmission Licensing Administrator (DTLA), saying it wouldn’t protect rights of broadcast program owners enough to give them incentive to make programming available on digital channels. “The digital transition will slow considerably if the technology proposed by the DTLA is implemented,” group warned. They said cable and other subscription programming would be protected against copies being distributed over Internet, but over-air programming wouldn’t get same level of protection: “Program producers will be reluctant to license their programs for digital broadcast distribution in the face of widespread acts of infringement over the Internet… These producers will inevitably move their programming over to such channels where protections are clearly stronger… This is bad for both localism and consumers who depend on free, over-the-air television.” Signatories included House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.), Telecom Subcommittee Chmn. Upton (R- Mich.) and ranking Democrat Markey (Mass.), Consumer Protection Subcommittee Chmn. Stearns (R-Fla.) and ranking Democrat Towns (N.Y.), Rep. Pickering (R-Miss.), Senate Commerce Committee ranking Democrat Hollings (D-S.C.), Communications Subcommittee Chmn. Burns (R-Mont.) and Sens. Breaux (D-La.) and Boxer (D-Cal.).