VisionStar’s proposed transfer of Ka-band satellite license to holding company jointly owned with EchoStar is part of long- range goal to provide high-speed Internet service to rural and remote areas of U.S., CEO Shant Houvnanian told us. “We want to bring 2-way high-speed Internet service to the dark side of the digital divide.” Role of EchoStar also will increase if FCC approves, Houvnanian said. “They will get a larger ownership stake, but I will still be the significant shareholder.” VisionStar/EchoStar partnership filed application with FCC Dec. 15 to transfer control of orbital slot at 113 degrees W over Continental U.S. from VisionStar control (CD Jan 9 p8). Houvnanian said he owns 51%, EchoStar 49% of VisionStar/EchoStar. “I've personally invested a lot of money in this project to keep it going,” he said. “This is a complete start-up” company. VisionStar is one of several companies allocated Ka-band slots in May 1997 by Commission (CD May 23 p5) that have yet to launch satellite or service. Houvnanian said since contracting with Orbital to build satellites, VisionStar had exercised option in contract that allowed it to contract with Lockheed Martin to expand scope of service by building larger satellites.
Arianespace Chmn. Jean-Marie Luton said company lost more than $190 million in 2000, citing operation of Ariane 4 and Ariane 5, training employees to operate both rockets, raising newer rocket’s payload. Production costs for 2nd series of Ariane 5 rocket will be 35% less than first series, InfoWest spokesman said. Company’s losses were “not a surprise,” he said, adding that it expected to break even in 2001. Arianespace also committed money to building S5 preparation building to allow company to perform all maintenance at launch facility in Kourou and expected building to come into service in April, which spokesman said would save company more money this year.
Without actually announcing his resignation or future plans, FCC Chmn. Kennard said farewell to fellow commissioners and agency staffers at Commission’s open meeting Thurs. In packed, emotional session filled with others’ tributes to his warmth, good humor and commitment to helping minorities, disabled and native Americans, Kennard acknowledged he was chairing his last FCC meeting and wished his successor “a great deal of success.” Choked up and admittedly “overwhelmed” at times, Kennard repeatedly thanked staffers and commissioners for their support and hard work and said he had been “proud and very privileged” to head Commission.
Mercedes Walton, ex-AT&T, appointed pres.-COO, Applied Digital Solutions… James Toupin, ex-U.S. International Trade Commission, named gen. counsel, U.S. Patent & Trademark Office… Larry Beerman, ex-Tellabs, named vp-business development, NexTone Communications… Timothy Kelly, ex-tickets.com, appointed pres., National Consumer Organization, Sprint…Kathy Jia promoted to gen. mgr., MediaWave Advertising… Appointed to e.spire Communications board: Dennis Freely, Telecom Group; Stanton Williams, NTL… Reed Hundt, ex-FCC chmn., elected to Brience board… Andrew Rosen, regional vp-sales, Clear Channel, adds exec. vp-mktg., replacing John Fullam… Robert Gerrard promoted to exec. vp-gen. counsel, Scripps Networks… Promotions at ACT Teleconferencing: Robert Aubry, to regional managing dir.-N. America, replacing Eugene Warren, who was promoted to COO; Mark Kelly to chief technology officer, replacing Iain McKeracher, retired.
Small Business in Telecommunications (SBT) told 3-judge panel of U.S. Appeals Court, D.C., Thurs., that many small businesses chose not to participate in 1997 800 MHz specialized radio auctions because of financial uncertainty and because FCC definition of small business was unclear at time of auction. However, when questioned by judges, SBT counsel Robert Schwaninger was unable to name single entity that claimed to have suffered from what SBT termed “uncertainty.” SBT was defending petition for review it filed on 2 FCC orders rejecting company’s petitions for reconsideration of its 800 MHz lower channel report and order and its upper channel report and order. Court said it had no jurisdiction on upper channel appeal since it wasn’t mentioned in SBT’s petition for review. Lower channel appeal dealt chiefly with issue of Small Business Administration approval of small business definition. Judge David Tatel questioned SBT attorney repeatedly, trying to establish, among other things, where in SBT pleadings certain claims made in its petition for review could to be found. All 3 judges said they were unable to find several assertions in SBT’s petition in proceeding’s earlier record.
NASA’s NEAR Shoemaker spacecraft will begin low-altitude passes over 433 Eros asteroid Jan. 24, getting as close as one to 2 miles Jan. 28 before Feb. 12 crash landing on asteroid’s surface. Spacecraft’s descent will allow its digital camera to take close-ups of asteroid’s landscape until it reaches 1,650 ft. above surface. NEAR Shoemaker isn’t expected to survive maneuver since it wasn’t designed to land.
Mich. Gov. John Engler appointed Laura Chapelle as new PSC chmn., succeeding John Strand, who recently resigned to head Mich. Legislative Advisory Council. Chapelle, who was Engler’s deputy legal counsel, will serve out 6 months remaining in Strand’s term. Her background is in energy regulation and legislation. Nomination is subject to Senate confirmation.
Electronic Privacy Information Center (EPIC) counsel David Sobel said location technology for wireless phones has “issues that need to be addressed soon.” Sobel said there “is very spotty legislation” in this area. Most important is question of legal standards required for law enforcement to gain access to location information, he said.
ALTS submitted proposal to FCC to curb high CLEC access charges without more drastic measure of mandatory detariffing. ALTS plan proposed Thurs. would: (1) Set ceiling of 2.5 cents per min. for CLECs serving large markets. Different formula would be used for rural CLECs. (2) Make CLECs subject to mandatory detariffing if they exceeded ceiling. (3) Protect CLECs from “harassing” tactics by large interexchange carriers (IXCs). For example, FCC would “affirm” that IXCs couldn’t refuse to pay filed tariff rates. Agency also would define terms under which IXCs could refuse to terminate service to end users served by CLECs that charged higher-than-permissible access rates. Proposal, called Guaranteed Reduced Exchange Access Tariffs (GREAT), was presented in comments to FCC on whether mandatory detariffing should be used to discourage excessive rates (CC Doc. 97-146). Agency had expressed concern that under “filed rate doctrine” of tariff law, CLECs could set unreasonably high rates and enforce payment through federal tariffs. ALTS said plan would “ensure reasonable CLEC access charge levels while at the same time promoting regulatory certainty.”
Motorola reported 41% drop in earnings to $335 million for quarter ended Dec. 31 but said Thurs. that sales rose 11% to $10.1 billion. Company warned last month that quarterly sales and earnings would be lower than expected, in part because of disappointing efforts to curb costs of wireless phone production. COO Robert Growney said company planned to take “further steps” to return to earnings growth this year. In conference call, company said handset sales were expected to lag into first half of 2001. Overall sales for 2000 were $37.56 billion, up from $32 billion in 1999, while earnings hit $1.9 billion, up from $1.4 billion. Personal communications sales edged up 1% to $3.5 billion for quarter, with orders of $2.9 billion down 20%. As result of “increased manufacturing costs,” profits for segment dropped to $76 million from $242 million year ago. While wireless phone sales were up significantly in Asia, “orders were down very significantly” in Europe, Motorola said. Telecom sales rose 19% to $2.1 billion in quarter. Broadband communications segment, which includes cable modems, saw sales climb 52% to $1.1 billion.