Minority ownership of commercial TV and radio stations increased 0.9% overall over last 2 years, but minorities’ share of TV market actually declined in 2000, NTIA said in report released by Commerce Secy. Norman Mineta Tues. “Unfortunately,” this was increase “that we must attribute mostly to an industrywide economic boom and an improved reporting methodology,” Mineta said, and “clearly there is reason for concern.” NTIA survey showed that consolidation in industry threatened survival of minority and single-station owners, he said.
AT&T said it would buy out Comcast and Cox minority stakes in Excite@Home, trading $2.9 billion of its own stock for its cable partners’ highly priced shares in Excite@Home. AT&T, which agreed last March to buy 60 million Excite@Home shares held by Cox and Comcast to consolidate its control of Excite@Home, reportedly sought to avoid large stock payout by offering some of its cable systems to 2 MSOs. But Comcast and Cox showed little interest in those properties, preferring to get AT&T stock at its currently deflated price. With transaction, AT&T said it would boost its economic interest in Excite@Home to 38% from current 23% and its voting interest to 79% from 74%. In return, Comcast and Cox will receive new, attractively priced stock warrants in Excite@Home and will continue to offer its high-speed data service through June 2006, including exclusively until June 2002. But 2 MSOs will retain right to end exclusive deals as well as entire distribution arrangement starting in Dec., as long as they're willing to forfeit warrants.
Research firm Telephia said survey found 18% of wireless customers switched carriers in last year, not counting 10% of subscribers who dropped service altogether. Telephia surveyed 24,000 wireless voice subscribers in 28 markets. It said 44% of survey respondents indicated they planned to drop their current service in next year.
Although she hasn’t formally announced her resignation, FCC Cable Bureau Chief Deborah Lathen confirmed she planned to leave Commission soon after its new Republican chairman took over. Lathen, who has run Cable Bureau since spring 1998 and presided over further deregulation of cable industry, told us Fri. that she hadn’t decided on departure date but “will ensure a smooth transition” to next bureau chief. She said she also hadn’t decided what she would do next. At Western Cable Show in L.A. in late Nov., Lathen said her plan was to complete AOL- Time Warner merger review and then “wiggle my toes in the sand.” She brushed off questions about her legacy, saying she wasn’t focusing on that and considered it “the height of arrogance” to spin others about one’s record of accomplishments. “The way you live your life is your legacy,” she said. “Everyone in Washington is always talking about their legacies… I've tried to have broader aspirations.”
Qwest said its customer service improved in 2000 with 98% of its installation commitments met when promised, representing best results in last 5 years, and 95% of its repair commitments met on time, best since 1996. In addition, more than 80% of service outages were repaired in less than 24 hours, up from 63% year ago, company said. It also announced line-sharing agreements with 4 competitors -- Contact Communications, Multiband Communications, New Edge Networks, NorthPoint Communications. Qwest said agreements would broaden availability of high-speed Internet and broadband services in its territory.
Tom Paro, 77, pres. of MSTV 1979-1988, died Jan. 11 at Suburban Hospital near Washington, D.C., of Parkinson’s disease and pneumonia. Before his stint at MSTV, Paro was an NBC vp and gen. mgr. of WRC-TV Washington. Survivors include his wife, 3 children, 2 stepchildren, brother, 8 grandchildren.
FCC’s C- and F-block auction hit $16.07 billion Tues., with Verizon Wireless now accounting for more than half of bids with $8.38 billion. Aggressive bidding for N.Y.C. spectrum flirted with $2 billion mark, with Verizon submitting separate bids of $1.8 billion for 2 licenses there and Cingular Wireless-backed Salmon PCS $1.2 billion for 3rd. Salmon PCS, in which Cingular has 85%, noncontrolling stake, bid $3.1 billion, followed by AT&T Wireless-backed Alaska Native Wireless with $1.3 billion, DCC PCS with $960.8 million and VoiceStream with $960.8 million. Bidding for 422 PCS licenses began Dec. 12 and completed 55th round Tues. Bidding for N.Y.C. licenses so far has outstripped that for next largest wireless market of L.A., where Verizon and DCC PCS have bid closer to $515 million.
PanAmSat said it had record $1.02 billion revenue and $694 million in earnings before interest expense, income taxes, depreciation and amortization (EBITDA) of 2000, up from $810.6 million revenue and EBITDA of $618.8 million last year. Net income edged up to $125.5 million from $122.2 million in 1999. Company said 4th-quarter earnings were $202.9 million, with $136.2 million in EBITDA. Company said it also signed $400 million in new long-term service agreements in 4th quarter. PanAmSat also projected total revenue of $1 billion for 2001, including $205-$210 million for first quarter.
PanAmSat asked FCC to defer deadline for filing comments on supplemental information provided by Intelsat in application to construct, launch and operate C-band and Ku-band satellites. PanAmSat wants comment period delayed until Commission has: (1) Acted upon Intelsat request, which PanAmSat opposes, for confidential treatment of documents filed along with supplemental information. (2) Determined whether Intelsat should be required to furnish additional relevant and material information.
Moody’s placed senior unsecured A2 debt ratings of Portugal Telecom (PT) on review for possible downgrade following carrier’s disclosure that its Brazilian subsidiary was buying 49% of voting rights of Brazilian wireless carrier Global Telecom. PT’s Brazilian arm, Telesp Celular Participacoes (TCP), is buying stake for $1.2 billion, including assumed debt, giving it overall investment of 83% in company. Moody’s concluded that move was in line with PT’s international growth strategy but raised concerns that “the magnitude of the investment may constrain the financial ratios of the group over the near term, as well as expose it to a higher risk operating environment.”