Ohio PUC ordered state’s 4 largest incumbent telcos to reduce their intrastate access charges to interstate levels set by FCC July 1 when it implemented CALLS Coalition’s access and universal service reform plan for large telcos. PUC directed Ameritech, Cincinnati Bell, Sprint and Verizon, which put interstate CALLS into effect July 1, to file new access tariffs by end of Jan. Agency ordered interexchange carriers to follow promptly with their plans for passing their access savings across the board to their customers. In past, Ohio set intrastate access charges by mirroring structure and rates of interstate access charges, but PUC in June 30 decision halted mirroring until it had chance to review impacts on state if access rate reductions required by CALLS plan were put into effect on intrastate basis. PUC concluded that resumption of interstate access mirroring rather than company-by-company PUC access charge reviews would be most sensible way to promote policy goals of lower interexchange rates, elimination of implicit subsidies, efficient competition and investment and regulatory certainty for telecom industry. For state’s smaller incumbents, PUC said it wouldn’t change anything until FCC decided on interstate access and universal service reforms pending for rural telcos. For CLECs, PUC said their access charges would remain capped at their present levels, with cuts permitted. Increases, however, will require full cost support.
FCC asked for comment on Rural Task Force (RTF) proposal for reforming universal service program for rural telcos. Federal- State Joint Board forwarded plan to FCC Dec. 22 (CD Dec 26 p4). In proposed rulemaking issued Jan. 12, FCC said it sought comments on: (1) In general, whether RTF plan should be adopted “as a means of providing stability to rural carriers,” whether it provided “sufficient” universal service support. (2) Effect of plan on competition, how small ILECs and new entrants would be affected. (3) More specific implementation details such as proposed “safety valve mechanism” for providing additional support to rural carriers. For example, agency asked how that support should be distributed if rural carriers were eligible for more than proposed fund cap. (4) Implementation of RTF proposal to fix per-line support at a specific level in competitive study areas. (5) Implementation issues involving “safety net additive support.” Comments will be due 30 days after proposal is published in Federal Register, probably this week.
Pat Patton, ex-KMBC and KCWE Kansas City, named program dir., KRON San Francisco… Mercedes Walton, ex-AT&T, appointed pres.- COO, Applied Digital Solutions… Alex Best, ex-Cox Communications, joins board of Concurrent Computer… Jeff Rich, pres.-CEO, Affiliated Computer Services, elected to Pegasus Solutions board… Appointments at Pingtel: Dan Petrie, ex- Logica, to chief architect; Jonathan Ross, ex-Artisoft, to vp- sales; Mike Storella, ex-FreightQuest, to vp-customer service… Chris Clough, vp-corporate communications, leaves Network Solutions.
NTL says its 4th quarter was record-breaking in subscriber additions, with 86,800 new customers joining during period. NTL also said “original” franchises had their 20th consecutive quarter of increased customer penetration, to 50.7%, and Teesside franchise continued to lead U.K. operations with 66.9% household penetration.
FCC turned down Motorola petition for reconsideration in 700 MHz order that modified agency’s service rules. Rule change allowed base station transmitters to operate in both lower and upper commercial 700 MHz band after Commission concluded alteration wouldn’t be likely to cause additional interference for public safety operators. FCC said change would provide for broadest possible spectrum use and expand participation in 700 MHz bidding. Agency rules had required commercial base stations to transmit in lower block frequencies of 747-762 MHz and corresponding mobile stations to transmit in upper block of 777- 792 MHz. Responding to several reconsideration petitions, Commission later altered policy in effort not to limit scope of new offerings in bands. Specifically, FCC said in order released Fri. that modification would let licensees configure systems to avoid potential interference to mobile receivers operating in lower block frequencies from TV stations in Ch. 56-59. Motorola petition cited concerns that change allowing base stations to operate in both upper and lower commercial bands would cause interference. Interference concerns stemmed from base station transmitters in upper block potentially creating problems for public safety base station receivers in nearby 794-806 MHz. Latest order said Commission was “unpersuaded” by new technical analysis submitted by Motorola. Adaptive Broadband Corp., ArrayComm, BellSouth and TRW had all opposed Motorola petition.
FCC’s C- and F-block PCS auction, which appeared to be entering home stretch, reached $15.3 billion in net high bids late Fri. Verizon Wireless and 2 designated entities with backing from Cingular Wireless and AT&T Wireless accounted for nearly 3/4 of all bids, led by Verizon with $6.2 billion. Cingular-backed Salmon PCS bid $3.1 billion and Alaska Native Wireless, which has nearly 39% AT&T investment, $2.6 billion. Other top bidders include Dobson Communications subsidiary DCC PCS with $960.8 million, VoiceStream with $558.3 million and Cook Inlet with $498.1 million. AirGate PCS, Sprint PCS Network partner, withdrew from bidding last week, following Alltel, Sprint PCS and Nextel. “The prices in our territory have increased beyond a reasonable threshold,” AirGate CEO Thomas Dougherty said. “We believe that investing in our network is a better use of corporate funds.” In all, 39 bidders remain of 87 at Dec. 12 start of auction. Only 33 new bids were placed in 51st round Fri. Bidding also has entered 3rd and final stage, meaning that under auction rules, participants must use at least 98% of eligibility credits to retain eligibility level without using waiver. Initial stage of auction requires bidders to remain active in more than 80% of bidding units on which they placed upfront payments, with threshold increasing at later stages to keep pace of bids moving. Competition still remains most fierce for N.Y.C. licenses, with bids of $1.6 billion, $1.3 billion and $1.2 billion from, respectively, Verizon, Alaska Native and Salmon PCS.
Canadian Minister of Industry Brian Tobin planned auction of additional PCS spectrum Jan. 15. Qualified bidders reportedly include arm of Sprint PCS Canada Holdings, Bell Mobility subsidiary of BCE, Microcell, Rogers Wireless, Telus, Thunder Bay Telephone.
Sirius Radio said it conducted first test of satellite radio system from orbiting satellite to mobile car radios. Ford Telematics Dir. Russ Minick said “difference between Sirius and regular radio is really impressive.” Tweeter Home Entertainment Group Buyer Marc Spatz said listening to service live “exciting.” Testing includes end-to-end testing and integration of Sirius receiver, studio, broadcast, transaction management and customer service systems, as well as feedback from listeners on programming, company said.
Financial News: J.P. Morgan Chase upgraded AT&T Corp. to long-term buy… Lehman Bros. predicted Time Warner Telecom, Winstar and XOXO would exceed its expectations in 4th quarter.