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..
Northern Communications agreed to buy broadcast group owner Shockley Communications for undisclosed price, companies said. Northern also said it would spin off KXLT-TV (Ch. 47, Fox) Rochester, Minn., to Shockley family. Northern will sell 5 former Shockley-owned ABC affiliates in Wis., plus 2 postproduction facilities, to Quincy Newspapers. Northern is private investment group that buys privately owned properties and “maximizes assets” by spinning off components, it said. In separate transaction, Lee Enterprises said it would sell KMAZ (Ch. 48, TBN) Las Cruces, N.M., to Council Tree Hispanic Bcstrs. for undisclosed price. Sale will complete Lee’s exit from commercial broadcasting.
Word is that Fox TV Network will tell its affiliates at meeting this weekend in Las Vegas that it’s dropping annual spring convention that has been held since network began in 1981. Session will be held just before start of ALTV-NATPE convention and fewer than half of affiliates are expected to attend. Many of what are now Fox affiliates were prominent in forming association for independent stations before Fox network started and have remained members. Financial factors reportedly are reason for dropping spring meeting, which in 2000 was held in Scottsdale, Ariz.
Public broadcasters’ DTV transition will run $779 million shortfall with no funding increases from federal govt., White House said in final Economic Outlook report. PTV made list of “pending policy proposals” -- Clinton Administration budget items that were cut severely by Congress -- after receiving only $44 million of requested $110 million for FY 2001. White House also said FCC’s spectrum auction authority had reaped $20 billion since 1994, and failure to renew it past 2008 would cost federal govt. $500 million annually.
NBC revenue fell 11% to $1.55 billion in 4th quarter ended Dec. 31, but operating profit was up 10% to $476 million, parent GE reported. GE gave little explanation of changes, although it cited higher ratings for broadcast network, “tremendous ratings” for MSNBC during election period and 40% full-year profit growth for CNBC. For full year, NBC revenue was up 17% to $6.8 billion and operating profit up 14% to $1.7 billion.
Telecom officials didn’t get answer from Bush Administration representatives Wed. to question who would be named FCC chmn., and when, we're told. Industry officials, primarily contributors to campaign, met with Bush transition office Wed. afternoon in what was described as “very generic and nonspecific” meeting. Most of attention focused on FCC reform, expediting agency decision-making and similar broad issues, we're told.
DirecTV is facing another class action lawsuit for alleged monopolistic practices that resulted in increase in price subscribers must pay for its products and services. Suit filed last Sept. in U.S. Dist. Court, L.A., alleged that DirecTV engaged in activities intended to stifle competition in violation of various federal and state antitrust laws. Suit said all DirecTV subscribers from March 1996 to Sept. 2000 had been damaged by DirecTV conduct and were entitled to damages. Best Buy, Circuit City, RadioShack and Thomson Consumer Electronics also were named in suit. Sears Roebuck also sued DirecTV claiming, among other things, that latter had canceled its contract after Sears didn’t stop selling EchoStar products and services.
FCC released 2000 biennial regulatory review Wed. that includes details on items that agency accepts for further review that were part of staff report released last fall. On wireless spectrum, review said agency accepted staff recommendation that spectrum caps that limited spectrum entity could hold in single market be considered. CTIA and several wireless carriers have been pressing agency to consider lifting spectrum cap on 45 MHz in all markets except rural areas, where cap is 55 MHz. Agency plans to consider notice of proposed rulemaking in “near future” that will consider “existing competitive conditions and technological developments that could affect the continued need for the cap.” Agency also accepted staff’s recommendation to consider excluding rural ILECs from requirement that independent (non-Bell) ILECs must offer long distance service through separate subsidiary. FCC said it would begin proceeding to seek comment on idea. In addition, it will ask whether it should consider waivers of that requirement for other independent ILECs that showed it created hardship for them. FCC Comr. Furchtgott-Roth said he was “heartened” by more detailed analysis in 2000 Biennial Review issued by agency Wed. Review includes staff report that analyzes regulations on “subpart-by-subpart” basis to determine whether they are needed, action that Furchtgott-Roth has championed in past. That level of detail offers “meaningful opportunity for debate about each section of our rules,” he said. He urged regulated companies to take active role in commenting on process that he said was “opportunity to keep our regulations consistent with marketplace and technological change.”
WorldGate Communications and Commerce.TV said they formed partnership to integrate latter’s data processing network with former’s interactive TV service. Companies said agreement would make Commerce.TV’s electronic shopping service available to all WorldGate subscribers through digital cable set-top boxes.
Ill. Commerce Commission Chmn. Richard Mathias this week asked other 4 Ameritech state commissions whether they ought to call another joint session with top SBC and Ameritech officials to get explanations for seeming contradictions between what companies were telling states and what they were telling securities analysts about service quality, competition and regulatory compliance burdens. In letters Tues. to heads of Ind., Mich., Ohio and Wis. commissions this week, Mathias cited “discrepancies” in statements by SBC Chmn. Edward Whitacre and other top SBC/Ameritech officials to state regulators in Oct. 16 summit meeting, and what Whitacre and other officials told securities analysts in Dec. 16 briefing. He asked other states “whether it would be helpful to know” which story contained real reasons for company’s troubles of past year. Mathias said SBC/Ameritech told securities analysts service problems of 2000 were caused by aging outside plant and capacity difficulties but told states problems were caused by technician shortages coupled with weather problems and surges in demand. He also said SBC/Ameritech had been telling Great Lakes state regulators and legislators company was being hammered by local competitors, while telling securities analysts that Tex. was where most local competition was happening, and that elsewhere companies expected growth in vertical service revenues would offset access line losses to CLECs. Mathias also questioned SBC/Ameritech’s blaming regulators for delays in entering long distance and other new markets when companies were paying millions of dollars in penalties for failing to serve retail and wholesale customers they already had. He said that while Ameritech seemed to have improved service for retail customers, it still was falling short in wholesale service to its competitors. “We should determine whether the seeming discrepancies between the comments by SBC/Ameritech to securities analysts and to state regulators demand immediate clarification,” Mathias wrote, and asked whether states wanted another summit with Whitacre to hear explanations. Ameritech spokesman said there wasn’t any pressing reason for another joint session with regulators because service problems that led to first session in Oct. “by and large have been addressed.” He said Ameritech hired hundreds of technicians and its service performance was at or close to state service quality standards. In related action, SBC’s Whitacre Tues. publicly apologized for Ameritech’s poor phone service in appearance before 250 Mich. business leaders at Economic Club of Detroit. “I know we stumbled coming out of the gate” following Ameritech-SBC merger, he said: “I'm not saying the problems are over. We are all embarrassed by them, but we are well on the way to correcting them.” He said Ameritech was upgrading its network to digital fiber system, which he said should cut down on maintenance problems, and has hired and trained more technical workers. He said service quality in Mich. still wasn’t quite as good as in other states, but vowed that it “will be and will be quickly” as good as elsewhere in region.