321 de minimis

Arianespace Flight 137 finally got off ground Jan. 10 as Eurasiasat 1 was launched into orbit from Kourou after 4 delays. Launch originally had been scheduled for Dec. 8.

PASADENA -- CBS TV Pres. Leslie Moonves said network had ordered new Survivor series 3 and 4 -- to follow Survivor 2, which begins its run immediately following Jan. 28 Super Bowl. Third in series will air in fall as hedge against possible strike by writers and actors. “That’s all part of the game plan,” along with extended new or expanded editions of news programming, he said at TV critics session here. Reality shows are “not union dependent,” Moonves said. “We hope the strike can be avoided, but we are ready… Obviously, everybody is going to be doing the same thing” in stockpiling reality programming in case of strike (CD Jan 9 p7). He joked that if Super Bowl were “a blowout, we may eliminate the 4th quarter and go right to Survivor… and hopefully in the near future we'll be announcing Survivor 19 and 20.” He refused to discuss prices being paid by advertisers for Survivor 2, but “obviously it’s a great deal more than they paid” for original series last summer.

U.S. Appeals Court, D.C., handed important victory to Assn. of Communications Enterprises (ASCENT) late Tues., vacating FCC order on one of conditions imposed on SBC-Ameritech merger in 1999. Court vacated order that covered tradeoff FCC made with SBC in which company was permitted to provide advanced services free of interconnection requirements if it created separate affiliate to provide those services. Decision focused on arguments by challenger ASCENT that FCC essentially was forbearing from regulating when it decided to bypass interconnection requirements of Telecom Act’s Sec. 251 because SBC would be providing advanced, not basic, service through separate subsidiary.

FCC Wireless Bureau denied petitions for reconsideration filed by Alliance for Radio Competition (ARC) and Hugh Taylor on assignment of 900 MHz licenses from Geotek. Last Jan., bureau granted applications for Geotek, which had filed for bankruptcy, to assign licenses to creditors and to assign from creditors to FCI 900, subsidiary of Nextel, licenses not covered by 1995 agreement of Nextel, Motorola, Dept. of Justice. (That consent decree barred Nextel from acquiring 900 MHz licenses in 15 markets.) Bureau also at time accepted FCI request to withdraw applications to assign from creditors to FCI licenses in markets covered by consent decree. ARC had argued that assigning licenses to FCI 900 would decrease competition in dispatch market. Taylor had contended Geotek wasn’t qualified to hold FCC licenses. Bureau concluded that neither ARC nor Taylor had raised new arguments or showed material errors in how decision was made. Order released Tues. reiterated FCC stance that original decision wouldn’t cause competitive harms in affected wireless voice markets.

As expected, satellite launch quota limiting Russian Proton flights ended with close of 2000. U.S.-Russian Launch Trade Agreement signed Sept. 1993 allowed unlimited number of flights on rocket. It originally allowed 9 western geosynchronous transfer orbit (GTO) satellite launches per year until number increased to 16 in 1996, then 20 in 1999, but provided for agreement to expire at end of 2000 unless govts. renewed quotas. After brief posturing by Congress, U.S. followed through with original intent of allowing quota to die at expiration date.

PASADENA -- Threatened strike against TV networks this spring by Writers Guild of America (WGA) and other unions (see separate item, this issue) was a major topic of conversation here as Pax TV, UPN and WB kicked off semiannual round of questions and answers with TV critics. “Everyone that’s involved on both sides says there’s going to be a strike,” WB CEO Jamie Kellner said. “I have no involvement whatsoever, so I say there’s not going to be a strike. I think there’s going to be a lot of reasons to avoid a strike.” He and UPN executives said they had contingency plans in place in case there was strike, including at least 4 “reality” programs under development by WB, plus advantage of being able to add movie night by using affiliate Turner Bcstg.’s huge library of films.

CWA and IBEW members ratified 2-year extension of existing collective bargaining agreement with Qwest. Contract, negotiated in 4th quarter last year, covers wage and pension increases, including 3.5% wage hike effective Aug. 19. Original CWA contract, covering most Qwest union employees, was signed in Sept. 1998 following 3-week strike. Agreement was to expire Aug. 16, with extension now keeping it in place until Aug. 16, 2003. Other provisions include: (1) 5% wage increase that takes effect Aug. 18, 2002. (2) 6% pension increase effective July 1, 2002. (3) 10% pension raise July 1, 2003. IBEW extension with Dex directory unit provides similar increases with different timelines depending on contract schedules, Qwest said. Contract extension between Qwest Dex management and CWA has been tentatively ratified and must be approved by union members, Qwest said. Company said it expected to be informed of Dex vote results next month. “The union membership voted 98% in favor of ratification,” said Peter Pusateri, business mgr. of IBEW Local 1269.

Qwest proposed settlement of pending Ariz. class action lawsuit filed against its predecessor, U S West, that would give credits ranging from $15 to almost $1,500 to estimated 300,000 customers who have suffered phone installation delays in last 8 years. Qwest filed $22 million settlement offer Wed. in Maricopa County Court, offering to compensate customers who suffered service installation delays between Jan. 1, 1993, and Nov. 20, 2000. Court hearing on settlement offer will be April 23. Current Qwest customers would get automatic bill credit while former customers would receive checks. Residential refund would range from $15 for 4-day delay to $880 if delay exceeded 5 months. Business refund would range from $59 to $1,465 per line. Credits for delay on additional residential lines would be $3. Qwest wouldn’t have to admit wrongdoing. Ariz. suit is outgrowth of original suit filed in 1997 in Denver alleging U S West had diverted resources from local service to fund new wireless and cable ventures, contrary to customer interests. Qwest last year settled Colo. suit for $36 million in refunds to 244,000 customers and similar N.M. suit for $6 million to 70,000 customers.

With FCC overdue to act on reciprocal compensation, Bell companies and CLECs competed Wed. to present their positions to Commission and news media just in case agency schedules vote on issue at its Jan. 11 agenda meeting. If item is placed on next week’s agenda, all lobbying will have to stop tonight (Jan. 4) under agency’s “sunshine” rules. FCC hasn’t said whether it will take up reciprocal compensation at meeting, but it originally planned to vote on issue by year’s end and then deal with broader proceeding on intercarrier compensation soon afterward. “It’s ripe for decision,” industry source said.

R/L DBS Co., formerly Continental Satellite Corp., received 36-month extension from FCC Thurs. to start alternative DBS service that has struggled to get off ground during past 4 years. R/L argued in request for extension that legal haggling, FCC delays and changes in market had made it difficult to raise money to launch satellite and meet milestones. Company said it has invested $30 million in DBS business, including $14 million toward design and construction of satellite. EchoStar, which opposed Commission action, questioned whether $14 million payment “constituted significant effort” toward building $250 million satellite. EchoStar also said $15 million went toward acquisition of Continental stock by Loral and R/L DBS hasn’t made additional progress toward arranging remaining financing for satellite. Under terms of its construction permit, R/L DBS originally was required to be in operation by Aug. 15, 1999. Commission said additional time will allow company opportunity to implement “innovative, regionally targeted” DBS service.