WorldGate Communications said it would introduce upgraded version of its interactive TV (ITV) service to cable operators and subscribers in first quarter. Company said new ITV service would feature improved Web browser, greater TV commerce capability, various image enhancements and Spanish-language chat. WorldGate said it would deploy new ITV features in both U.S. and Latin America.
WideOpenWest signed deal with DemandVideo to offer latter’s video-on-demand (VoD) service in markets where it’s building competitive cable systems. Using DemandVideo’s VoD technology and service, WideOpenWest said it would offer subscribers choice of recent Hollywood movies, classic films, children’s and family programming and instructional shows. Customers will have 24 hours of unlimited viewing of any title they select and will be able to pause, play, rewind, fast-forward or restart titles. Cable overbuilder announced deal Wed., day after concluding 3-year pact with Source Media to use latter’s interactive program guide and local programming service. WideOpenWest said it planned to start offering 2 services first in Denver area in March.
LAS VEGAS -- Broadcasters and other regulated industries can expect from new FCC “a greater feel for the law… and a more humble approach,” FCC Comr. Furchtgott-Roth said here. Commission will regulate “only what the law requires… and it will be a greater day at the FCC,” he told ALTV panel Mon. afternoon. Michael Powell, who had been FCC chairman for just a few hours, deferred first question from ALTV’s David Donovan -- on what changes broadcasters could expect under Bush Administration -- to his Republican colleague, after which Powell said “my final sincere hope” is that agency would become “more efficient and responsive” to needs of those it regulated: “The greatest enemy of regulation is… uncertainty.” After panel, longtime Washington lawyer told us: “We're in for a sea change of deregulation if you follow their comments to their logical conclusion.”
Spectrum availability and how wireless technology can help bridge digital divide will dominate wireless policy arena this year, CTIA Pres. Thomas Wheeler said at press lunch Tues. He said CTIA was “very hopeful” FCC would address industry concerns on spectrum cap. CTIA has been urging agency to lift 45 MHz cap for all but rural markets, where ceiling is 55 MHz. Wheeler pointed out that in past FCC orders that dealt with cap, newly named Chmn. Powell had questioned why existing ceiling should remain intact. Lifting it would provide “interim relief” while 3rd-generation policy debates continued on whether and how to free additional spectrum for advanced mobile services, he said. Lifting cap “will buy you the 18 months that you need to get to the tough decisions,” he said, referring to 3G. Wheeler stressed prominent role Japan and European countries have taken in wireless Internet, in part by govt. policies that have made spectrum available and issued licenses. “God bless the Clinton Administration for starting the spectrum policy review process,” Wheeler said of 3G. “But they couldn’t bring it to fruition. And it now falls to the Bush Administration to deal with the really hard parts and make decisions.” Wheeler praised NTIA proposal last week on reimbursement for federal agencies that must relocate from existing spectrum (CD Jan 18 p2). NTIA outlined changes on how private sector could reimburse agencies, including possible relocations connected to 3G decisions involving military spectrum. “It might just be the underlying key point so far to be raised in breaking whatever gridlock there might be in creating access to spectrum,” Wheeler said. As for Verizon Wireless’s request to FCC last week that agency delay 700 MHz auction beyond March 6, he said he still was making calls to members on group’s position. (Comments are due Jan. 24). “Their concern is not an illegitimate concern,” Wheeler said of request to push back bidding for at least 2 months but preferably until Sept. 6. “You have to be in a position where you can work out bidding alliances, structures and trading spectrum and all these kinds of things to get you set for the next auction. But you are prohibited, because there’s an ongoing auction, from doing those very things.” In other policy areas, Wheeler said he hoped agency would address outstanding issues such as calling-party-pays and reciprocal compensation and privacy, including CTIA’s Nov. petition that proposed privacy principles covering mobile location-based services. He said he was hopeful FCC would move on privacy issues, although he said there was intra-agency debate on whether it belonged in Common Carrier or Wireless bureaus.
Sen. Brownback (R-Kan.) reintroduced bill (S-124) to exempt voluntary industry guidelines governing content from antitrust laws. It was referred to Judiciary Committee. Bill would cover Internet content as well as TV, movies, videogames, music lyrics. Content industries have complained they can’t self-regulate their content as govt. is pressuring them to do because that would require illegal consorting. Senate Antitrust Subcommittee Chmn. DeWine (R-O.) and ranking Democrat Kohl (Wis.) and Sen. Dorgan (D- N.D.) are initial co-sponsors.
Korean and European patent officials upheld CDMA patents held by Qualcomm, rejecting oppositions. Korean Intellectual Property Office upheld Qualcomm patent on control of transmitter power to overcome fading and reducing interference within telecom system to bolster network capacity. In separate proceeding, office also rejected opposition to Qualcomm patent that describes method for formatting data for transmission. Separately, European Patent Office confirmed patent that relates to processor used in CDMA receivers to normalize incoming blocks of data. Qualcomm disclosed decisions Tues., although European ruling was issued last month and Korean decisions earlier this month.
FCC’s C- and F-block auction continued to linger around $16.8 billion mark Tues., with Verizon Wireless remaining virtually unchanged in top slot with $8.8 billion in high bids. In sign that bidding for 422 PCS licenses continued to drag, as few as 9 new bids were made in one round Tues. afternoon. In last 10 rounds, bids have increased only $150 million. In all, auction has gone 85 rounds since starting Dec. 12. AT&T Wireless-backed Alaska Native Wireless had $2.9 billion in high bids, followed by Cingular Wireless-backed Salmon PCS with $2.3 billion, DCC PCS with $546.1 million, Cook Inlet with $499.2 million, VoiceStream PCS with $482.3 million and Leap Wireless International with $350 million. Licenses still drawing new bids are mostly smaller markets in southern and western parts of country. Separately, Leap Wireless said late Tues. it had reached agreement with Qualcomm, which will provide wireless carrier with $125 million in financing to support its bidding. Qualcomm is planning to transfer to Leap auction discount voucher it previously received from agency. Qualcomm stipulated it had no role in auction. Leap said it would repay Qualcomm for value of voucher in form of loan payable in single payment within 5 years. Qualcomm had received voucher from FCC as part of litigation settlement involving pioneer’s preference license.
Coalition for Noncommercial Media (CNM) filed motion for preliminary injunction with FCC seeking to block Western N.Y. Public Bcstg. Assn.(WNYPBA) from allowing its noncommercial TV station WNEQ-TV Buffalo to be operated commercially following its decision to sell station to LIN TV for $26.2 million (CD Nov 9 p5). Motion came on heels of petition by CNM to deny WNYPBA’s application with FCC for voluntary assignment of license of WNEQ- TV to LIN TV. Saying it was not unusual for FCC to “consume 7 years investigating allegations” in petition to deny, CNM said that unless status quo were maintained during that time, denial of application would be “a hollow remedy.” In addition to WNEQ-TV (Ch. 23), WNYPBA has been operating WNED-TV (Ch. 17) noncommercially to carry mainstream PBS schedule, CNM said, and FCC’s April 2000 modification of table of TV allotments de- reserving Ch. 23 and making Ch. 17 reserved was not final order as CNM had sought review in U.S. Appeals Court, D.C. FCC decision based on allotments policy didn’t address whether “it would serve the public interest for Buffalo, or any other community, to surrender a noncommercial TV station to commercial operation,” it said. WNEQ-TV’s LMA is unlike others because it actually would combine commercial and noncommercial service on same channel, CNM said. That would confuse audience by “deploying the prestige and integrity of public broadcaster to promote the offerings of a commercial enterprise,” it said.
U.S. Appeals Court, D.C., sided with U S West Tues. and remanded FCC order that had denied company’s request for forbearance of dominant carrier regulation for provision of high- capacity services in Phoenix and Seattle. Court ruled that FCC was inconsistent when it denied U S West’s petition for lack of reliable data on market share. To gain lessened regulation, U S West had to prove it faced competition for provision of high- capacity services in those 2 cities. In opinion written by Chief Judge Harry Edwards, court said FCC in past had relied on other measures such as elasticity to determine existence of competition and in one case made nondominance determination “in the absence of any market share data.” Court remanded case because FCC never specifically said market share was “essential” to prove competition, Edwards said. Court denied related petition by AT&T and WorldCom that questioned appropriateness of FCC’s telling U S West it still might qualify for pricing flexibility under separate process even though it lost forbearance request. AT&T and WorldCom argued that such language was backdoor way of giving U S West relief but Edwards called that argument “specious claim.” He said it was “clear that the forbearance order does nothing more than indicate that U S West is eligible to apply for relief under the pricing flexibility order.” However, court also denied suggestion by FCC counsel in oral argument that availability of pricing flexibility process lessened need for forbearance requests. Edwards said “U S West and other such petitioners are entitled to pursue forbearance under [Sec. 10 of Telecom Act] without regard to the pricing flexibility order.” Court panel also included Judges David Sentelle and Raymond Randolph.