Rockwell Collins extended $3 million development contract with Datron Systems to build satellite antennas that would allow commercial aircraft to receive broadband video and data over Internet for passenger entertainment. Datron received contract in Aug., but addition covers full funding for development of flight test units and establishes terms and conditions under which Rockwell may place future orders. Contract calls for delivery of 9 Ku-band antennas beginning in spring.
FCC Wireless Bureau denied Pegasus Broadband petition asking Commission to dismiss Northpoint application for violating ex parte rules. Bureau said it would only “admonish” Northpoint to follow rules, which regulate disclosure and documentation, more closely. FCC said Northpoint “committed no significant violation” of ex parte rules.
Bidding in FCC’s C- and F-block PCS auction reached $16.7 billion after 67 rounds Thurs., with Verizon Wireless maintaining wide lead of $8.6 billion in total bids. Alaska Native Wireless, which is designated entity with AT&T Wireless investment, followed with $2.9 billion, Cingular Wireless-backed Salmon PCS with $2.5 billion. After top 3, bidding has remained at much more modest levels, with Cook Inlet/VoiceStream GSM having $505.1 million in net high bids, VoiceStream PCS with $475.1 million, DCC PCS with $418.3 million and Leap Wireless International with $341.2 million. Auction of 422 PCS licenses began Dec. 12 and is expected to end shortly.
FCC turned down petition by advocacy group Rainbow-PUSH Coalition to deny license renewal application of U. of Mo. for noncommercial radio station KWMU(FM) St. Louis for alleged violation of EEO rules, but fined university $8,000 for “willfully omitting” material facts about employment discrimination complaints in information provided to Commission. Rainbow alleged that station had discriminated against several black applicants and former station employees, citing declarations by 2 former staffers and 2 applicants. In order adopted Dec. 20 but not released until Jan. 17, Commission said Rainbow had failed to make prima facie case in its petition to deny. Individual complaints, in general, didn’t suffice to make prima facie case that grant of renewal application would be inconsistent with public interest, it said. FCC’s policy has been that such complaints ordinarily should be resolved first by EEOC or other govt. agency and/or court established to enforce nondiscrimination laws, agency said, and Rainbow hadn’t raised facts “that would warrant a departure from our general policy.” As for Rainbow’s charge that number of minorities employed by KWMU indicated that station violated Commission’s EEO program requirements, agency said it couldn’t consider allegations relating to EEO program requirements because they were held unconstitutional by U.S. Appeals Court, D.C., in Luthern Church-Missouri Synod v. FCC. FCC found that licensee had “willfully omitted” facts involving EEO litigation involving 2 part-time employees -- in one instance even after Commission staff sent letter specifically asking it to identify such cases. Finding that licensee’s “behavior is more egregious” than in previous such cases of apparent liability, agency granted renewal subject to notice of apparent Liability for $8,000.
Telecom Business Notes: (1) Qwest won contract worth more than $100 million to provide network capacity to Cable & Wireless. (2) Viatel said it realigned its operations to focus on high- growth businesses and would stop providing consumer voice services in countries “that do not meet long-term corporate objectives.” Streamlining will lead to staff reduction of about 30%. (3) Time Warner Telecom plans IPO of 4.4 million shares of its Class A common stock. Proceeds will be used to repay portion of $700 million senior unsecured bridge loan that Time Warner Telecom used to finance purchase of GST Telecom’s assets.
Broadcasters are averaging 4 hours of children’s TV programming per week, one more than FCC’s 3-hour guideline, FCC Chmn. Kennard said in letter to Capitol Hill Thurs. Letter accompanied FCC reports on children’s TV rules and on DTV public interest standard. On kidvid, Kennard said more still needed to be done, including limiting preemption of children’s programming and publicizing availability of shows. On DTV public interest, report listed 11 possible ways for broadcasters to “fulfill their statutory duty to serve the public interest,” Kennard said. He said principles should “provide useful guidance” for congressional discussions with broadcasters. Principles cited in report include airing local issue-oriented programs, carrying PSAs, “enriching children,” protecting children from harmful programs, “enhancing democracy,” providing disaster and emergency information, protecting consumer privacy, making programming accessible to disabled, using technology to enhance service.
Speculation about replacement for FCC Chmn. Kennard continues. Among latest rumors: (1) One telecom source speculated Thurs. that Bush might name Republican Comr. Powell interim FCC chairman while also appointing Texas PUC Chmn. Pat Wood to Commission. Under this scenario, Powell would eventually move to high antitrust enforcement post in administration, allowing Wood to take over as FCC chairman. Besides role in Dept. of Justice, source said, Powell could become new FTC chairman, replacing Clinton appointee Robert Pitofsky. Source also speculated that Republican Comr. Furchtgott-Roth would leave Commission soon, opening another seat for Bush nominee. (2) Another source said one of FCC’s Democratic seats may be filled by Ivan Schlager, former Democrat staff dir. on Senate Commerce Committee and now at Skadden, Arps, at request of Sen. Hollings (D-S.C.), ranking minority member of Committee.
Fox should re-evaluate its advertising for Temptation Island, FCC Comr. Tristani said in letter to News Corp. Chmn. Rupert Murdoch. She said “many parents” had complained about ads for show airing during children viewing hours, saying “children should not be exposed to advertisements for programming that is inappropriate for children.”
NTIA reported mixed results Thurs. in first round of ultra- wideband (UWB) tests in non-GPS band, pointing to “potential” to operate that wireless technology in 3-6 GHz range without interference. “The test results today show a great deal of promise between 3 and 6 GHz,” NTIA Dir. Gregory Rohde said at news briefing. But tests also found “difficulties” with interference in bands below 3 GHz, occupied by systems such as airport surveillance radar and federal govt. systems. Rohde said results set stage in coming weeks for negotiations between FCC and NTIA over final rule on UWB operation in GPS and non-GPS bands. Difficulties in bands below 3 GHz at certain distances between UWB devices and other systems could be mitigated through measures such as requiring devices in certain cases to operate indoors, Rohde said. “It’s not that a door has been closed here,” he said.
Cost of wireless phone service dropped average of 6.9% last year in 25 metro areas, Econ One research group said. Subscribers to 600 min. per month plans saw deepest average price reductions, 10.1%, from $66.63 to $59.91, company said. Overall average in 25 cities was calculated across plans with 30, 150, 300 and 600 min. of use. Average price for all such plans dipped to $39.60 last month from $42.53 in Dec. 1999. St. Louis, Dallas and Kansas City saw biggest price declines -- 18.2%, 15.6% and 14.4%, respectively, Econ One said. Sacramento price plans increased 4%. Although average prices dropped last year, 19 of 25 cities surveyed in Dec. saw increases in monthly service plans. It said “aggressive” handset pricing could explain why services prices didn’t drop more in Dec..