FCC C-block bidding edged up to $14.2 billion Tues. after 39 rounds, with Verizon Wireless solidifying its lead to $6.5 billion. While overall pace of bidding has slowed since auction resumed Jan. 4, Verizon Wireless bids picked up, rising from $5.1 billion in net high bids Mon. AT&T Wireless-backed designated entity Alaska Native Wireless came in 2nd with $2.5 billion, followed by Cingular Wireless-backed Salmon PCS with $1.9 billion. For first time on Tues., 2 N.Y.C. licenses edged up past $1 billion. Previously, Verizon had been bidding $1.17 billion for one license in that market, but it edged up bid for 2nd to $1.27 billion. Alaska Native Wireless is bidding $930.7 million for 3rd license there.
ICO-Teledesic Global Ltd. received FCC authority to transfer control of license held by predecessor Teledesic to construct, launch and operate nongeostationary orbit Fixed Satellite Service satellites. ICO also received exemption from space station “cutoff rule” that will allow it to continue prosecuting its pending letter of intent to access 2 GHz Mobile Satellite Service frequency bands. Commission said decision would permit completion of planned merger of Teledesic and ICO into single organizational structure and would serve public interest by facilitating rapid deployment and competition for broadband services. FCC gave companies 60 days to complete transaction.
Viasource Communications updated 4th-quarter revenue and earnings guidance Mon. It predicted total revenue for 4th quarter would be $54-$56 million, with adjusted earnings before interest, taxes, depreciation, amortization (EBITDA), special compensation charges, satellite and wireless revenue deferral in range of $1.7- $2.6 million, which will result in loss of 6-8 cents per share. Pres. Craig Russey said satellite and wireless business “transitioned during quarter as midpower conversions ended” and new high-powered “retail fulfillment installations reached record levels,” but DSL connectivity business has been “big disappointment.” Russey said company “experienced earnings pressure” from costs of rollout of nationwide fulfillment services for satellite and wireless sector along with major changes in DSL industry. Company plans to announce results for 4th quarter and fiscal year 2000 after close of market March 1.
AT&T named Oscar Munoz, ex-Qwest senior vp, as vp-CFO of its new consumer unit…. Va. Corp. Commission named Steven Bradley, ex-Verizon sales exec., as dir. of Communications Div., replacing retiring Alan Wickham… Janet Cooper, ex-Qwest Communications, named CFO-senior vp-finance & administration, McData… Dipesh Shah, ex-Lucent Labs, appointed vp-engineering, U.S. Wireless… Robert Perry, ex-Webhire, named senior research analyst-Internet Computing Strategies Planning Service, Yankee Group… David Marvento, legislative dir. for Rep. Tauzin (R-La.), will follow him to House Commerce Committee as staff dir… Paul McGuire resigns as UPN senior vp-communications to become Disney media consultant… Patrick Scannell, ex-Silknet, appointed CFO, PhotonEx… Promotions at USA Affiliate Distribution: Douglas Holloway to pres.-network distribution & affiliate relations, Peter Ruben to exec. vp-affiliate relations,Tom Smith to senior vp-eastern division, Mark Bienstock to senior vp-business affairs & gen. counsel… Andrew Fisher promoted to pres., Cox TV… Traver Gruen-Kennedy, chief strategist at Citrix Systems and chmn., ASP Industry Consortium, appointed pres., Tech. Forum of S. Florida… Alain Briancon, ex-Motorola, named exec. vp-chief technology officer, InterDigital… Oscar Munoz, ex-Qwest, appointed vp-CFO, AT&T Consumer… Appointments to PrivacyRight Board of Advisers: Ray Everett-Church, founder of PrivacyClue LLC; Michelle Kraus, founder of MagicMaker… Paul Yazge, ex- Zaffire, named vp-sales & mktg., Codeon… Jonathan Chauvin-Blitt, ex-Allied Global, appointed pres., Americas, ITT Industries, Network Systems & Services… Robert Allen promoted to vp- accounting & financial reporting, Regent Communications… David Brown, chmn. of U.K. subsidiary Motorola Ltd., awarded knighthood… Don Cameron, former exec. dir., National Education Assn. and founding partner of CEO Forum on Education & Technology, awarded Presidential Citizen’s Medal… Scott Dinsdale, ex- FirstLook, appointed exec. vp-Digital Strategy, MPAA.
Gemstar International Group took fresh shot at Time Warner (TW as FCC continued to ponder AOL’s pending acquisition of TW. In 2-page letter to FCC Thurs., Gemstar, which has been sparring with TW over MSO’s temporary blocking of Gemstar’s electronic program guide on TW cable systems last year, warned Commission that cable operator easily could do same thing again because it had shown no remorse. Despite TW’s June “decision to desist from stripping,” Gemstar said, TW “neither acknowledges that stripping is a violation of the FCC’s rules and policies, nor undertakes that it will not resume stripping without awaiting definitive FCC action.” Gemstar urged Commission to “deal with the issues” raised “regarding the anticompetitive nature of Time Warner’s behavior” before approving AOL-TW deal. Specifically, Gemstar wants agency to impose conditions on AOL-TW prohibiting it from discriminating against rival interactive TV content providers.
Verizon met or exceeded “key operating targets” for 4th quarter and full-year 2000, CEO Ivan Seidenberg said Mon. at Salomon Smith Barney conference in Scottsdale, Ariz. Among them: (1) Company ended year with about 540,000 DSL subscribers, exceeding 500,000 target. (2) It had 1.4 million long distance customers in N.Y. at year’s end, gaining 20% share of state’s residential long distance market. (3) Verizon Wireless had net gain of about 1.2 million new customers in quarter and ended year with about 27.5 million. He also announced that Verizon had $535 million in merger-related expense savings in 2000 following formation of Verizon Wireless and Bell Atlantic-GTE merger.
Twice-delayed Arianespace Flight 137 was set finally to get Eurasiasat 1 off ground after our deadline Mon. Flight cleared launch readiness review Jan. 6 and launch was expected in window of 5:08-7:51 p.m. ET. Flight had been planned for Dec. 8 but was rescheduled for Dec. 11 for checks on Ariane 4 launcher. Eurasiasat 1 contractor Alcatel Space requested 2nd round of verification on satellite that caused further delay to Jan. 8 (CD Dec 12 p8).
To no one’s great surprise, cable TV remains dominant technology for delivering video programming to consumers, according to 7th annual video competition report adopted last week and released by FCC Mon. Commission found that cable industry totaled 67.7 million subscribers in June 2000, up one million (1.5%) from 66.7 million in June 1999. But DBS continued to make steady inroads in cable’s market share, adding almost 3 million subscribers over same period to reach nearly 13 million last June, up 29% from year earlier. Largely as result, cable operators now control 80% of burgeoning pay-TV market, down from 82% year earlier, while DBS providers now command growing 15.4%.
White House formally renominated FCC Comr. Ness again for new term, throwing her bid to stay on Commission back to Senate Commerce Committee for consideration. Ness was renominated last year, but Committee Chmn. McCain (R-Ariz.) never scheduled confirmation vote, and she currently functions under recess appointment that expires as soon as another commissioner is appointed. If cleared by Committee, Ness’s 5-year term would start from July 1, 1999, expiration of her last one. However, Commerce Committee spokeswoman said panel would concentrate on confirming Bush cabinet members before considering Ness’s situation.
Officials of Simi Valley, Cal., are urging cable subscribers to protest increase in fees, announced by former owner Comcast day before Adelphia Communications took over ownership of Ventura County cable system Jan. 2. City officials accused Adelphia of orchestrating increase, which takes effect Feb. 1, that raised monthly cost of 51-channel basic package to $39.26 from $37.10. Adelphia, which didn’t mention planned increase before taking over, said it was justified because of system upgrade, including 10 new channels and establishment of local customer service center. In Dec., city had increased franchise fee to 5% of gross revenues from 3%.