Fifth U.S. Appeals Court, New Orleans, ruled 2-1 that La. PSC wasn’t immune under 11th Amendment from federal judicial review of its decisions on carrier interconnection agreements under Telecom Act. Court was ruling on AT&T challenge to PSC arbitration decision in interconnection dispute with BellSouth. Fifth Circuit held that La. PSC had waived its sovereign immunity rights when it agreed to arbitrate interconnection dispute under terms of Telecom Act. Court also ruled that “ex parte Young” doctrine applied in cases involving states’ alleged contraventions of Act’s Sec. 251 and 252. That doctrine allows federal lawsuits against states to halt violations of federal law. This was 4th federal appeals court to deny states 11th Amendment protection for their interconnection contract decisions. Previous decisions against states have come from 6th, 7th and 10th Circuits. U.S. Supreme Court last Oct. refused to review matter.
FCC Comr. Powell “remains the clear front-runner” to be next agency chairman and expects to be tapped this week, House Commerce Committee Chmn. Tauzin (R-La.) told reporters at TechNet lunch Fri. “I talked with him last night,” Tauzin said. “He said he hadn’t heard yet.” Addressing rumors Powell might be holding out for another Bush Administration position, Tauzin assured reporters: “He wants it.”
Research group Allied Business Intelligence (ABI) projected in report released Fri. that wireless location-based services revenue would grow to $40 billion in 2006 from $1 billion in 2000. ABI analyst Frank Viquez attributed expected growth, in part, to FCC’s Enhanced 911 requirements that mandate automatic location identification-capable wireless gear. ABI report said Sprint’s plan to deploy GPS chips for location-based technology in its handsets starting in mid-2001 would be boost to industry if handsets were delivered on time.
Globalstar stock dropped another 19% to 97 cents following announcement Tues. that company had stopped making debt payments (CD Jan 17 p4). Loral stock was unchanged Fri. at $4.31. Meanwhile, First Eagle Fund of America said it fell below 2000 projections because of subpar year at Loral and Globalstar. Loral plummeted more than 85% because of concern about company’s 40% stake in Globalstar.
“I'd rather be a man of principle than a man of politics,” departing FCC Chmn. Kennard said Fri. in response to criticism of his administration (CD Jan 19 p1). “It’s a sad commentary on Washington that one can be considered too nice,” remarked ex-FCC staffer who now is communications attorney. Kennard spent day in variety of going-away activities including lunch where he presented his senior staff with “certificates of appreciation” and afternoon party attended by several hundred people from inside and outside FCC. Amid music by jazz band, Kennard was spoofed by variety of people. Mass Media Bureau Chief Roy Stewart gave him “first low-power radio license” for station WWEK (Kennard’s initials) which will broadcast “150 feet between Kinkos and the 7- 11.”
FCC hit Callais Cablevision with $133,000 fine late Fri. for repeatedly violating Commission’s cable signal leakage rules, largest amount ever assessed against cable operator for such problems. Agency found that Callais, which runs cable system in Grand Isle, La., violated leakage standards in tests on 3 separate days early last year, interfered with FAA aircraft approach frequencies, didn’t perform leakage tests on time and didn’t install necessary equipment to correct problem in time. FCC said Callais system, unlike MediaOne Detroit system fined $55,000 for signal leakage violations last year, deserved record fine because it showed “almost complete disregard for the rules designed to protect air traffic safety, including failure to offset frequencies and failure to make annual measurements to verify compliance with the basic leakage performance criteria.” Callais has 30 days to challenge fine.
Comsat said it won 4-year, $1 million contract to provide high-speed (128 kbps) data and voice satellite communications to Radisson Seven Seas Cruises (RSSC) Seven Seas Mariner.
AOL Time Warner announced plans to repurchase up to $5 billion of merged company’s common stock and file universal shelf registration statement for $10 billion. After first board meeting Thurs., AOL Time Warner said it would begin buyback next month, making purchases from time to time over next 2 years, depending on market conditions. At same time, it will use $10 billion shelf registration to cover issuance of debt securities, common stock, series common stock, preferred stock, warrants. Company said moves would give it “greater financial flexibility” to take advantage of marketplace opportunities, boost return on capital, build shareholder value. Separately, AOL Time Warner CEO Gerald Levin donated $10 million to new National Cable Television Center and Museum in Denver in honor of his late son, Jonathan, N.Y.C. high school teacher murdered several years ago.
Ind. Utility Regulatory Commission (IURC) opened formal investigation into Ameritech’s massive service problems last year, as had it promised to do earlier this month when informal negotiations on expanded customer compensation for outages collapsed. IURC Exec. Dir. Michael Leppert said agency’s previous informal approach “has run its course. It’s time we take the next logical step” to examine Ameritech’s customer service and network management practices, and how they contributed to last year’s service debacle. Up to now, IURC has concentrated its efforts on getting quick improvement in Ameritech phone service rather then seeking reasons for mess. IURC said Ameritech service performance, although improved, still hadn’t met state’s service quality standards, and said investigation was necessary to build case it could use to petition state courts for fines against company. Ameritech spokesman said company wasn’t surprised by probe, but stood by its efforts to improve service and its commitment going forward to keep up its service quality. Consumer watchdog Ind. Citizens Action Coalition applauded IURC action but predicted Ameritech would be “very formidable adversary” as investigation proceeded. IURC will set procedural schedule in next few weeks.
Conn. Dept. of Public Utility Control (DPUC) granted application of SNET Personal Vision (SPV), cable TV subsidiary of Southern New England Telecommunications Corp.(SNET), to wind up its cable business in state (CD Aug 14 p5). In draft decision released Jan. 19, DPUC left open possibility of competitive cable providers’ leasing network elements and colocating equipment within company’s facilities. Dept. said it lacked statutory authority to compel SPV to continue to provide competitive cable service. To make SPV’s exit from cable business nondisruptive and fair to customers, DPUC asked company to credit each subscriber $50 instead of $40 offered by company to defray charges to connect to new video provider and provide 2 separate notices to customers. It accepted company’s proposal to fund its community access providers for one additional year based on subscribership as of Aug. 11. Pointing out that forced transfer of SPV’s modified franchise agreement would raise level playing field concerns, DPUC deferred ruling on request by Conn. Broadband, subsidiary of Conn. Telephone & Communication Systems, that it order transfer of SPV’s network and its franchise to company (CD Sept 22 p8). Dept. said it made modifications in SPV’s franchise in 1999 to allow company to serve only in areas where it already provided service until it found viable alternative technology to HFC. Issues such as those will arise in any cable franchise, it said. Although federal and state law mandate that SNET’s telephone subsidiary make leased access available to competitive providers of voice and data services and not cable operators, DPUC urged company to lease facilities to cable providers either by tariff or by special arrangement “that would allow competitive provisioning of video services.