Private wireless users and others are lining up positions at FCC ahead of Notice of Proposed Rulemaking (NPRM) to address Nextel spectrum swap proposal that’s expected shortly. Raising concerns about secondary status that business licensees would have at 800 MHz under Nextel blueprint, National Assn. of Mfrs. (NAM) floated alternative spectrum reconfiguration in recent letter to FCC Chmn. Powell. Secondary status of private wireless operators “would cause major disruption and dislocation” to thousands of manufacturing operations and costs of relocating elsewhere could run into “tens of millions of dollars,” wrote NAM Pres. Jerry Jasinowski. Cost of relocation and questions about availability of adequate spectrum for private land mobile radio operators that would be displaced have been common theme of early criticism of Nextel. Motient Communications, which operates network used by BlackBerry wireless e-mail device, told Powell in letter last week that long-term effect of Nextel plan would cost company $400 million to replace subscriber equipment and network infrastructure and result would be “catastrophic.” NPRM addressing Nextel White Paper is expected out within month, source said.
Valley Media is liquidating assets just 2 months after seeking bankruptcy protection following collapse of proposed merger with Alliance Entertainment. Woodland Hills, Cal., distributor is taking bids on $90 million in inventory and $100 million in receivables and hearing has been scheduled in U.S. Bankruptcy Court, Wilmington, Del. for Jan. 30, Pres. Lew Garrett said. Any assets not sold by Feb. 8 will be auctioned off on Web. Music distributor Alliance has moved quickly to snag some assets, paying $325,000 for Valley’s Audiophile database and Schwann publications and $200,000 for DVD Advance catalog, Garrett said. Money raised through auction will be used to pay secured creditor Congress Financial. Valley has received “hundreds” of bids for assets from customers, creditors. movie studios and content owners, Garrett said. Valley valued its debt at $259.2 million at time of bankruptcy filing. Competitors haven’t waited long to attack. Navarre late last week hired staff from company’s former distributors of N. America Div. with goal of landing new label distribution deals, Navarre CEO Eric Paulsen said. Valley got its start as music distributor, but made ill-fated attempt to broaden into video with $36 million acquisition of Star Video in late 1990s. It later added distribution for online retailers such as Cyberian Outpost. “The die was cast several years ago because Valley overspent for Star Video and never fully integrated it,” Garrett said. Valley also “overbuilt” in adding 2nd warehouse in Louisville and suffered from large amount of uncollected receivables, he said.
Reported agreement on merger reviews by FTC and Justice Dept. (DoJ) remained uncertain Thurs. and one senior official speculated accord was “dead.” Agencies had scheduled joint news conference Thurs. for “announcement,” but it was canceled with no comment from FTC or DoJ. FTC Comr. Mozelle Thompson attacked agreement in news release issued before conference, saying FTC Chmn. Timothy Muris hadn’t invited other FTC commissioners to review agreement before he executed it. Said spokesman for House Commerce Committee: “Frankly we were a little surprised to learn the Administration was moving forward on this proposal with little if any input from Congress… Obviously, if this is resurrected we would like to put our 2 cents worth in.”
FCC issued order on cellular service rules for Gulf of Mexico service area (GSMA) that took bifurcated approach to cellular licensing split between eastern and western parts of region. Eastern Gulf includes Fla. coast and western half covers Ala., La., Miss. and Tex. Gulf coast. Regions are split because in eastern area there are no offshore gas and oil drilling platforms for cell sites. FCC adopted proposal to create coastal zone in which cellular unserved area licensing rules would be in effect. In Western Gulf, cellular service will continue to be covered by existing rules. Commission created Gulf of Mexico Exclusive Zone, covering Western Gulf and parts of Eastern Gulf outside of coastal zone, “in which the Gulf carriers will be exclusively licensed to operate,” it said. In 1980s, FCC first authorized cellular service in Gulf of Mexico, allowing companies to operate throughout GSMA, which extends to shoreline. Gulf carriers had been restricted to placing transmitter sites on offshore platforms and couldn’t use land-based transmitters for service area. Land-based wireless operators also faced restrictions because they couldn’t extend their service area contours into GSMA, FCC said, resulting in conflict between Gulf carriers and adjacent land-based carriers. In some cases, that has led to coverage gaps either on land or over water. In Eastern Gulf, where offshore oil or gas platforms aren’t built out, FCC concluded that best way to ensure “seamless” cellular service was to adopt proposal to create coastal zone along eastern part of GSMA. That will let land-based carriers extend service area contours into coastal waters, allowing them to add cell sites close to shore and to bolster signal strength. In Western Gulf, Commission said best way to achieve reliable service was to encourage continued reliance on negotiation and market-based solutions. It cited agreements already reached by PetroCom and US Cellular as well as several land- based carriers.
Continuing flap over copy-protected discs -- including congressman’s challenge in U.S. -- has prompted BMG record label to postpone further protected releases, spokesmen for label in Europe and U.S. told us. Meanwhile, in Japan, record labels Avex, Sony and Toshiba-EMI planned to implement copy protection this summer, Japan press reports said.
Is CES badge ticket to Las Vegas hotel bargain or guarantee of paying top dollar for room selling at rockbottom rates to general public? Answers go all over map, according to our informal poll of online reservations sites for popular Las Vegas destinations.
FCC late Fri. reallocated for “new flexible services” 27 MHz of spectrum transferred from federal govt. Spectrum included several small blocks transferred under Omnibus Budget Reconciliation Act of 1993 and Balanced Budget Act of 1997. Spectrum is in 216-220, 1390-1395, 1427-1429, 1429- 1432, 1432-1435, 1670-1675 and 2385-2390 MHz bands transferred to nongovt. uses. Agency said new allocations would permit “new and innovative wireless technologies” while at same time preserving primary status of Wireless Medical Telemetry Services and elevating to primary status Low Power Radio Services in 216-217 MHz band, which include auditory assistance and law enforcement applications. Agency said notice of proposed rulemaking would be released soon that would propose service rules for reallocated frequency bands, some of which must be licensed through auction by Sept. 2002.
Just 5 home video releases brought in more than $1 billion in 4th quarter sales for Universal Studios Home Video, content owner said. Proceeds came from sale of 60 million copies, including 20 million DVDs, of titles Dr. Seuss’ How the Grinch Stone Christmas, The Mummy Returns, Jurassic Park III, The Land Before Time: The Big Freeze and DreamWorks Pictures’ Shrek.
Senate 94-2 approved report (H. Rpt. 107-350) for Dept. of Defense appropriations bill (HR-3338), which would provide DoD with $70 million boost for critical infrastructure protection (CIP) and information assurance programs. Under section providing additional emergency appropriations, conferees also recommended $237 million for FBI’s Trilogy information system program. This amount includes: (1) $56.7 million for information assurance and data digitizing. (2) $20.6 million for computer analysis response teams. (3) $12.2 million for “audio interception technology.” (4) $12.2 million for audio-video-image analysis program. (5) $8.7 million for wireless intercept program. (6) $6.4 million for Title III wiretaps. Report also recognizes “that terrorist organizations exploit the Internet to plan, coordinate, and initiate terrorist acts, finance terrorist activities, and recruit terrorists. To enable the FBI to continue its efforts to work with businesses and federal and state govts. to fight cybercrime, $61 million is provided for the national Infrastructure Protection Center, including not less than $12 million for the Special Technologies and Applications Unit, and $7.2 million is provided for regional computer forensic labs.” Supplemental funds also were approved to bolster Washington emergency response communications, including: (1) $45 million for Office of the Chief Technology Officer for “first-response land-line and wireless interoperability project.” (2) $14 million for district-wide response and communications activities. (3) $5 million for Metropolitan Washington Council of Govts. “to enhance regional emergency preparedness, coordination and response.” Amount includes $1.5 million to develop comprehensive regional plan, $500,000 to develop critical infrastructure threat assessment model, $500,000 to develop and implement regional communications plan.
State Dept. approved streamlined procedures for its review of applications submitted to FCC for undersea cable landing licenses. Alan Larson, undersecy. of state for economic, business & agricultural affairs, approved changes last week. State Dept. has review authority in that area under 1921 Cable Landing License Act and executive order. State said it authorized FCC to grant or revoke all submarine cable landing license applications as long as Commission notifies in writing U.S. coordinator for international communications & information policy and State doesn’t raise objections within 30 days. Among changes in existing process that such applications have undergone at State Dept. is that 30-day time line hasn’t been in place. State said it planned to continue to coordinate views on applications with NTIA and Defense Information Systems Agency at Defense Dept. Goals of new review procedures include helping U.S. companies stay competitive in telecom market without “jeopardizing national security,” State said. “These changes reflect the Administration’s ability to work together to promote competition in this important marketplace by making the government regulatory process for submarine cables more efficient,” said David Gross, U.S. coordinator for international communications & information policy. NTIA Dir. Nancy Victory said streamlining process “makes it less costly to deploy submarine cables, which benefits U.S. consumers.