AT&T Wireless subsidiary Triton PCS said it added 84,811 customers in quarter ended Dec. 31 and for year subscriber base doubled to 446,401 from 1999. Triton said churn (customer turnover rate) dropped to 1.78% in quarter from 1.94% in 3rd quarter. Roaming min. in 4th quarter rose to 110 million from 56.6 million. Leap Wireless ended 2000 with 190,000 customers in 10 markets, adding 127,500 in quarter ended Dec. 31 and tripling subscriber base and exceeding year-end goals, Leap CEO Harvey White said. Leap plans to offer its Cricket wireless service in 35 markets by end of this year.
Vodafone is acquiring 34.5% stake in Mexican wireless carrier Grupo Iusacell for $973.4 million in shares purchased from Peralta Group. Iusacell is 2nd largest wireless operator in Mexico with 1.5 million subscribers. Vodafone is joining Iusacell investor Verizon, which already has 37% stake in carrier. Vodafone and Verizon run largest U.S. wireless operator through Verizon Wireless venture. Vodafone Pres. Americas Asia William Keever said Iusacell transaction marked carrier’s entry into Latin American wireless market. “With only 2.2% company subscriber penetration in its 4 cellular regions, Iusacell represents an extraordinary growth opportunity for Vodafone,” he said. Vodafone is paying for Iusacell shares in cash in deal that is expected to close in this quarter.
While CLEC industry is far from strong overall, upbeat news from McLeod and XO Communications shows CLECs with good management and business plans are persevering, analysts said Fri. McLeod announced bond offering and better-than-expected financial expectations Thurs. while XO announced Fri. it is selling $450 million of 5.75% convertible subordinated notes in private placement. Lehman Bros. analyst Daniel Zito said successful market transactions “should alleviate some pressure on the better names which have been cast away with everything else in the sector downdraft.” It shows “funding is still available at reasonable terms for the better management teams,” he said.
Michael Kennedy moves up to dir.-global relations, Motorola… Betsy Kulick, ex-Motient, named dir.-external relations, Final Analysis… John Fiorini, ex-Gardner, Carton & Douglas, appointed partner, Wiley, Rein & Fielding… Nicole Buie, advanced to dir.-research and education, CableRep Adv…Stephen Parker, ex-Russell Reynolds, named managing dir.-information systems and e-commerce, Hailes & Assoc… Jack Zwaska to receive career achievement award to be named after him by Bcst. Cable Financial Management Assn. Jan. 10… Adam Singer, Telewest, appointed non-exec. member of board, QXL ricardo… Jeffrey Liberman advanced to pres.-Radio Div., Entravision Communications, replacing Amador Bustos, who resigned as executive but remains with company… Kay Jackson promoted to dir.-regulatory affairs, Cox Communications… Travis Rutherford, ex-ememories.com, named senior vp, MGM Consumer Products and MGM Interactive, replacing Doug Gleason, resigned… Richard O'Brien, ex-Special Olympics, appointed exec. vp-dir.-govt. relations, American Assn. of Advertising Agencies… Changes at Prodigy Communications: Added to board: Robert McClane, Joseph McKinney and Randall Stephenson; resigned from board: Marc Goldberg and Arturo Elias… Vicki Livingston, ex-Telecorp PCS, named dir.-mktg., Universal Wireless Communications Consortium… William Carey, advanced to pres.- Southwest Tex. Div., Time Warner Cable, replacing Jeffrey King… Peter Uhlmann promoted to chief of staff for Rep. Cox (R-Cal.) from legislative dir., but will continue as principal adviser on Internet and telecom issues.
Minn. Gov. Jesse Ventura (Ind.) outlined his telecom reform agenda for 2nd half of his term. In State of State address Jan. 4, he called for: (1) Abolishing outdated telecom regulations that he said stood in way of developing telecom competition. (2) Bringing advanced digital telecom services to every household and business in state by promoting competition and investment in high- tech telecom. (3) Eliminating implicit subsidies in telecom service rates. Ventura didn’t go into details on how he would accomplish his goals, but said overhaul of state’s telecom laws was needed to ensure Minn. cities would have access to modern high-speed telecom infrastructure that’s prerequisite for attracting new business investment.
Month after postponing consideration of thorny DTV transition issues, FCC intends to tackle at least some DTV matters at its Jan. 11 open meeting. Well-placed sources said Commission was likely to approve bid by new DTV-only station to gain cable must- carry status and require consumer electronics manufacturers to put digital tuners in all new TV sets by date certain, among other less controversial items. But what’s not clear was whether agency would tackle core issue of whether cable operators and DBS providers should carry broadcasters’ analog and digital signals during current DTV transition. Action on dual-carriage issue, which has been hanging over federal regulators for more than 2 years, has been postponed repeatedly by Commission.
FCC issued Notice of Proposed Rulemaking (NPRM) Fri. that examines potential spectrum that could be tapped for 3rd- generation wireless and other advanced services. Agency seeks comments on providing mobile and fixed services in 1755-1850 MHz band now used by military, various approaches for 2500-2690 MHz now occupied by Multichannel Multipoint Distribution Service (MMDS) and Instructional TV Fixed Service (ITFS) licensees, proposed allocation of 1710-1755 MHz for fixed and mobile services, and other options (CD Jan 5 p1). Interim report on 3G spectrum issued by FCC last fall said segmenting MMDS and ITFS bands to allow operation of advanced mobile services would pose technical challenges. NPRM seeks comments on scenarios that would allow operation of advanced wireless services in that frequency. One possibility, FCC said, is allocating spectrum for fixed and mobile services on co-primary basis, which would allow spectrum to be used for advanced offerings such as 3G. Comment is invited on “public interest costs and benefits” of adding mobile allocation to bands without mandatory relocation. NPRM asks whether there are steps that could bolster secondary market in those bands so they could “evolve to their highest value use,” whether fixed or mobile. “Could current ITFS/MDS licensees reorganize their systems to continue providing current services and also offer new mobile services on a competitive basis with other wireless system providers, such as cellular or PCS,” FCC asked. It wondered whether part of spectrum could be made available for new entities. It asked ITFS licensees whether adding mobile service allocation to 2500-2690 MHz would help educators and, “if so, how such operations could be utilized in an educational context.” MMDS licensees are asked whether adding mobile service would benefit their band plans. If part of band were cleared for advanced wireless services and incumbents had to be moved, notice asks how licensees could be accommodated elsewhere. In that area, agency is looking for cost estimates for relocation and whether equipment would need to be retuned or facilities would have to be replaced altogether. Second phase of FCC’s 3G spectrum report, due in March, is to cover potential relocation options and related costs. NPRM also seeks comment on several band pairing schemes and pairing options. In general terms, FCC solicits feedback on range of advanced wireless services that could be introduced in future and their cost impact on manufacturers, system operators, consumers. Comment is sought on how much additional capacity is needed for advanced services, including high-speed data and multimedia applications such as full-motion video. Specifically, NPRM asks what size of spectrum blocks would be appropriate and when extra spectrum will be needed.
Bidding in FCC’s C- and F-block auction slowed Fri., but reached $13.07 billion, with Verizon Wireless maintaining wide lead of $5.52 billion in net high bids. Other top bidders include AT&T Wireless-backed Alaska Native Wireless with $2.75 billion and Cingular Wireless-backed Salmon PCS with $1.94 billion. AT&T Wireless doesn’t appear in list of top 15 bidders, and Cingular isn’t competing as standalone entity. In all, top 15 bidders now include 13 designated entities, most of which have links to larger carriers. While Verizon is by far highest bidder, $2.26 billion of its total is in bids for 2 N.Y.C. licenses at $1.17 billion and $1.1 billion. Alaska Native Wireless bid $758 million for 3rd license in that market. After 31 rounds, Verizon had highest bids on licenses in Washington, Boston, L.A., Chicago, San Francisco, Philadelphia. Alaska Native Wireless had high bids for spectrum in L.A. and Atlanta and Salmon PCS in Dallas license. Dobson Communications DCC PCS edged into upper echelon of bidders, placing 4th with $957.68 million, followed by VoiceStream with $540.12 million, affiliated Cook Inlet with $348.69 million, Leap Wireless with $293.47 million. Last week marked exit of several large carriers, including Sprint PCS and Alltel. Of 87 bidders who qualified at Dec. 12 start of auction, 49 remained as of late Fri. SVC BidCo, designated entity in which Sprint has 60% noncontrolling investment, still was in auction. Other bidders who have left auction include Nextel, Sprint affiliate Alamosa PCS, Nextel-affiliated designated entity Connectbid, Cincinnati Bell Wireless.
Largest AT&T affiliate TeleCorp PCS said it added 145,231 customers in quarter ended Dec. 31. TeleCorp PCS was created last year after merger of TeleCorp Wireless, which added 95,656 subscribers in 4th quarter, and Tritel, which added 49,575. Combined entity had year-end subscriber base of 666,425. Tritel said it expected to take premerger one-time charge related to reductions in roaming revenue. TeleCorp PCS said that was likely to mean $4 million reduction in roaming revenue guidance for quarter for Tritel.
Sweden’s Telia plans to ask that country’s court system to suspend decision by National Post and Telecommunications (PTS) Agency to award 3G licenses. PTS last month awarded 4 Universal Mobile Telecommunications Service licenses, in process in which Telia failed to win 3G spectrum. Telia, which is country’s largest carrier, said it is asking county administrative court system in Sweden to freeze PTS decision until it has processed company’s appeal. Telia appeal contends that PTS: (1) Made incorrect technical applications in license award process. (2) Failed to comply with its regulations, including not evaluating “commercial viability” of applications. (3) Ignored Swedish law which requires that license allocations be made at lowest possible cost to national economy. Telia charged that PTS awarded licenses in process that reflected public procurement proceeding and not license allocation procedure. Other issues raised in Telia appeal include concerns about role of external consultant hired by Swedish govt. to help process applications. Telia contends that consultants added “important information” to examination of applications which PTS, in alleged violation of administrative law, didn’t inform Telia about. Telia also said it wasn’t informed about questions on its application that consultants asked and that PTS didn’t refer to company for consideration. “The law states that private individuals are to have access to efficient telecommunications at the lowest possible cost,” said Telia Pres.- CEO Marianne Nivert. “But the PTS has certainly taken no law into consideration.”