CTAM and Cablevision called for entries for 18th Annual Mark Awards competition with Feb. 9 deadline. Awards recognize marketing and advertising excellence in cable and telecom.
Mich. PSC gave Ameritech and Verizon until Jan. 24 to explain why they couldn’t implement any relief plan for Pontiac 248 area code before mid-2002, year after code is projected to run out of numbers. Companies in Dec. told PSC they couldn’t address relief for 248 until they completed relief plans adopted for Lansing 517 and suburban Detroit 810 codes. PSC wants to know why companies can’t work concurrently on 3 code relief plans, hire outside contractors to handle one or more plans or implement interim code conservation measures such as rate center consolidation or number pooling. PSC said delay contemplated by 2 incumbents would lead to number shortage that would greatly inconvenience Pontiac customers and have “chilling effect” on development of local competition in city. In another matter, PSC approved amendment to Ameritech’s statement of generally available terms (SGAT) for local interconnection to offer CLECs several additional types of network element bundles. Ameritech agreed to incorporate amendment in its existing interconnection agreements with CLECs. It said it proposed change to meet Telecom Act requirement for nondiscriminatory access to network elements. However, PSC declined Ameritech request for finding that change would put company in full compliance with unbundled network element (UNE checklist requirement of Sec. 271. PSC said request was premature. Agency said it wanted to see effect of new UNE combinations on development of competition before making any UNE- related checklist finding.
NetVoice Technologies said it expected positive earnings before interest, taxes, depreciation and amortization (EBITDA) by 3rd quarter and profitability shortly thereafter, making it first IP telephony provider to announce profitability. Pres.-CEO Jeff Rothell cited industry reports of growing trend toward consumer use and acceptance of IP telephony as fundamental foundation of NetVoice’s business strategy. He said plans for year included becoming profitable, growing enterprise segment and continuing to build wireless IP network.
In news cheered by Wall St., BellSouth reported it had topped its own projections for reaching 200,000 DSL subscribers in 2000, exceeding goal by 15,000 in 46 markets. It also restated 2001 target of tripling DSL numbers to 600,000 in 63 markets by year- end. Company, which plans to announce 4th quarter and 2000 financial results Jan. 22, said it would expand central office and remote solutions for DSL deployment in coming year. It said goal was to increase coverage to more than 70% of households in its markets by year-end. BellSouth DSL is available now to more than 10 million phone lines and is expected to grow to more than 15 million by the end of the year.
Citing U.S. World Trade Organization (WTO) promises, former Commerce Secy. and U.S. Trade Representative Mickey Kantor urged FCC to approve license transfers for proposed $34-billion VoiceStream-Deutsche Telekom merger. VoiceStream submitted Kantor statement before close of comment period on merger Mon. “This FCC proceeding is about more than the acquisition of a U.S. common carrier by a foreign company,” he said. “It is a test of the United States’ compliance with binding international legal obligations which were negotiated and entered into in good faith.” In acting on VoiceStream-DT application, FCC must move in way that’s consistent with U.S. obligations under WTO Basic Telecom Agreement (BTA), he said. “Failure to do so could invite initiation of a WTO dispute settlement action against the U.S. government and would establish for other WTO members an unwelcome precedent of noncompliance,” Kantor said. He warned that scope of sanctions under General Agreement on Trade in Services (GATS) wasn’t limited to sector in which violation was found. That means, Kantor said, that if U.S. were found to have violated GATS, “it could be liable for trade sanctions in any sector.” Also, if U.S. were to act in way that indicated backtracking on trade commitments, it could damage its negotiating power in current talks, such as GATS services negotiations, he said. FCC shouldn’t restrict access to U.S. telecom market “based on market conditions in other countries that do not affect competition in the United States,” he said. Binding U.S. commitments under BTA don’t hinge on other countries’ implementation of their own duties, he said. In other reply comments, Organization for International Investment rebutted concerns raised by Sen. Hollings (D-S.C.) and DT competitors such as Global TeleSystems and Novaxess. Hollings, ranking Democrat on Senate Commerce Committee, last month had renewed his call to FCC to reject application, underlining his opposition to telecom assets bought by companies with majority foreign govt. investment (CD Dec 18 p6). In other comments, Siemens advocated approval of merger, saying it would increase U.S. telephony competition. Transaction still awaits approvals of Dept. of Justice, FCC and Committee on Foreign Interests in U.S.
U.S. Trade Representative (USTR) is seeking comments for annual review on operation and effectiveness of U.S. trade pacts on telecom services and products. USTR is soliciting feedback on: (1) Whether any World Trade Organization (WTO) member is acting inconsistently on its commitments under WTO Basic Telecom Agreement. (2) Steps that should be taken on reviews in 2000 on telecom trade compliance by Germany, Mexico, S. Africa, U.K. (3) Whether Canada or Mexico has failed to comply with telecom commitments under NAFTA. (4) Whether Asia Pacific Economic Cooperation members, Inter-American Telecom Commission, European Union, Japan, Korea, Mexico or Taiwan have failed to comply with commitments under additional telecom agreements with U.S. USTR also is seeking comment on whether Germany “continues to address” competition issues such as excessive license fees and nontransparent cost data filed by Deutsche Telekom with German regulator. As for other U.S. reviews, USTR seeks comments on whether U.K. is “properly implementing” WTO reference paper obligations to ensure interconnection on terms and cost-oriented rates that are unbundled. Comments are due by noon, Jan. 26 at USTR office.
Cellular Telecommunications & Internet Assn. (CTIA) urged FCC to continue to forego regulation of wireless intercarrier roaming, contending automatic roaming rule isn’t needed. Comments are in response to notice of proposed rulemaking (NPRM) in which FCC examines whether mandatory automatic roaming rule remains unnecessary. NPRM said agency wouldn’t mandate automatic roaming unless market forces along couldn’t ensure availability of competitive roaming services. “The Commission’s current roaming requirements have proven sufficient to foster cellular and PCS roaming services without imposing undue costs” on industry, CTIA said. National Telephone Cooperative Assn. (NTCA) didn’t ask FCC to implement mandatory automatic roaming requirement, but asked it to continue to monitor situation to “ensure that roaming agreements do not discriminate against small and rural CMRS providers.” NTCA said market appears to be working “and automatic roaming agreements are generally available where it is technically and economically feasible.” While rural carriers don’t have trouble striking roaming deals, sometimes terms are “unjust,” group said. In such cases, NTCA said, “the rural carrier pays more for the privilege to roam in the urban territory than the large carrier pays to roam in the rural territory.” Rural Ala. carrier Corr Wireless Communications went step further, saying market is “clearly not working on its own to prevent abuses of power.” “Small independent carriers do not have the economic clout to bargain with large carriers who have their own wide-area footprints for automatic roaming,” Corr wrote, citing alleged problems with Cingular Wireless. “This permits large carriers to engage in the very sort of bullying abuses which led” to regulatory curbs for wireline competitors, Corr said. Corr is asking agency to adopt automatic roaming rule that tracks basic interconnection obligations of common carriers under Telecom Act. Several commenters cited concerns about wireless consolidation, which they said creates less incentive for larger competitors to strike low priced roaming pacts.
Michael Brouder, ex-WBZL Miami, appointed dir.-creative services, WGN Cable, Chicago… Ronald Walter promoted to vp-govt. & cable relations, N. Y. Times Bcst. Group… Kathy Payne promoted to dir. of programming, Cox Communications… Bob Walker, ex-KQMB Salt Lake City, becomes program director, WKTI Milwaukee… Dave Wampler promoted to dir. of finance-central and eastern regions, CableRep Advertising… Philip Bouchard, ex-ThinkLink, appointed CFO-COO, Chapter 2… Bob Collet, ex-Teleglobe, named pres., Velocita… Jack Reily, ex-Broadview, appointed exec. vp-corporate development, Efficient Networks… Mona Klausing, ex-Novatel, named dir.-product mktg., Invertix… Craig Young, AT&T Canada vice chmn. and dir., joins board of Global Metro Networks… Joseph Armstrong, ex-State Of The Art Inc., appointed CFO, Sorrento Networks… Davis Masten, co-founder, Cheskin Research, elected to Truste board… Minoru Nakamura, ex-NTT PC Communications, appointed pres., AOL Japan… Alan Amico promoted to CPO, PeopleFirst.com… Marc Randall advanced to vp- engineering, Force10 Networks… Lance Simmens, ex-Small Business Administration, appointed dir.-govt. relations, Screen Actors Guild… Promoted at 20th Century Fox: Ted Gagliano to pres.- postproduction, Joe Hartwick to pres.-physical production… Travis Rutherford, ex-Dreamworks and Disney, appointed senior vp, MGM Consumer Products and Interactive Divs.
Percentage of minorities working in PTV stations dropped slightly in 1999 with minority employment growing marginally less than overall total, CPB said in annual report to Congress on Public Bcstg. Services to Minorities and Diverse Audiences. However, minority employment in public radio grew 4.7% as against 2.8% overall increase, resulting in 0.4% gain overall. Public broadcasting stations blamed situation on tight job market combined with fewer resources to spend on recruitment and salaries than larger for-profit corporations, making hiring and retention of all qualified employees, including minorities, difficult.
Cal. Foundation for Taxpayer & Consumer Rights filed state lawsuit on behalf of people of Cal. seeking removal of PUC Comr. Henry Duque from office. Group alleged Duque violated state’s conflict-of-interest law that bars PUC members from holding financial interest in any PUC-regulated company. Suit in Cal. Superior Court, San Francisco County, alleges Duque violated law when he held stock in wireless firm Nextel Communications for several months last year. Although PUC doesn’t regulate wireless rates and entry, suit claimed Nextel holding violated law because company’s fortunes were directly affected by PUC decisions in matters such as numbering, interconnection, universal service. Suit said law without exception required that PUC members with financial interests in companies they regulate must vacate office. Cal. Attorney Gen. William Lockyer last month removed potential obstacle to group when he said he had no legal objection to group’s lawsuit plan.