Satellite digital radio rivals used Las Vegas Consumer Electronics Show (CES) to flex their promotional muscle in advance of commercial debuts later this year. Sirius Satellite Radio told news conference it had signed “multifaceted” marketing and programming partnership with House of Blues that “will introduce service to millions of music fans” attending House of Blues events throughout U.S. Sirius also announced programming carriage agreements with A&E TV Networks, Discovery Channel, Weather Channel. Mktg. Vp Doug Wilsterman said first Sirius receivers should arrive for sale by midyear at $300-$400. Sirius also plans to market FM modulator for adapting existing car audio equipment for use with Sirius satellite receiver. It demonstrated what Wilsterman called “absolutely true” satellite reception in Las Vegas Convention Center. He said that for demonstration purposes, Sirius had turned off its Las Vegas terrestrial repeater. Responding to questioner, Wilsterman said Sirius and rival XM Satellite Radio were committed to “honoring” FCC mandate that receivers marketed by both services be made interoperable. He said Sirius and XM were working very hard to achieve interoperability under “unified standard” agreement they signed last year. But he estimated that first interoperable receivers wouldn’t be available in marketplace for 4 years. Meanwhile, at Fri. Las Vegas news conference set for past our deadline, XM planned to demonstrate first-time live broadcasts to Convention Center from company’s Washington studio. On eve of CES, XM said it scored big promotional coup, announcing it had signed 2,200- store Sears to promote XM radio products and services at retail nationally.
American Tower said Fri. its operating income before depreciation and amortization plus interest would fall below expectations for 4th quarter. Company said lower than anticipated levels were due mainly to one-time $7 million reserve for bad debt on component sales to Anicom. Operating income before depreciation and amortization is now expected to be $56-$60 million in quarter. Company also said it expected revenue for quarter to be $226-$233 million, resulting from stronger than forecast sales in services and Internet, voice, data and video segments. American Tower estimated that towers newly constructed in quarter would top 500, also beating forecasts and raising year- end total to more than 1,650. Company’s shares fell 8.37% Fri. to $36.25 at close.
January 8, 2001 by Sasha Samberg-Champion|Miscellaneous
First order of business for new House Commerce Committee Chmn. Tauzin (R-La.) is examination of “the networks’ blown coverage of the Presidential election,” his spokesman Ken Johnson told us. In early Feb., Tauzin will chair hearing by full Committee on issue, Johnson said: “It’s not designed to be confrontational. We simply want to find out why the networks dropped the ball and how we can prevent this from happening again.” He said other early priorities would include FCC reauthorization and reform, giving Bell companies authority to provide advanced services across LATA boundaries, resolution of reciprocal compensation controversy and “long hard look at online privacy.”
BEI Technologies said it had acquired digital quartz inertial measurement and miniature integrated GPS/INS tactical systems (MIGITS) units from Boeing Co., terms not disclosed. BEI said acquisition of subsystems lines would give it access to developed Microelectromechanical Systems and Global Positioning Systems for aerospace, defense and commercial applications.
Tex. PUC urged state legislature to set statewide goal of providing affordable advanced services to all Texans by date certain, refrain from overregulation of advanced digital data services, create climate that promotes advanced service development. PUC, in annual report to legislature on broadband development in Tex., said while rural areas’ broadband interest was high, they were less likely to have services available. Agency said Internet use among older, poorer and minority populations was less than in overall population. To spur broadband development, PUC suggested legislature consider tax incentives, giving rural governments authority to provide broadband services if private efforts failed, using control over state rights-of-way to encourage development, using economic development funding for advanced services. Agency also suggested private initiatives including demand pooling, community networks and finding “anchor tenants” that would guarantee usage to attract investment.
Hungarian Telephone & Cable finalized purchases of shares of its Hungarian subsidiaries from minority stockholders, terms not disclosed. Company said transactions were all-cash except for purchase of International Finance Corp.’s (IFC) 20% stake in Papatel. For Papatel transaction, Hungarian Telephone issued 72,000 shares of common stock to IFC, which is part of World Bank Group. Hungarian Telephone Pres. Ole Bertram said it planned to consolidate its 4 subsidiaries into single company.
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.
NCTA submitted 2nd brief to U.S. Supreme Court, seeking to convince high court to review appellate court ruling that struck down FCC’s authority over pole attachment rates for cable lines carrying Internet service. In 10-page reply brief filed Jan. 2 in Gulf Power case, NCTA argued that decision by 11th U.S. Appeals Court, Atlanta, “improperly rejected the FCC’s reasonable construction of Section 224” of Telecom Act and wrongfully concluded that “Congress intended to repeal the regulatory authority that the FCC admittedly possessed over pole attachments regardless of the type of service provided over the equipment attached to the poles.” NCTA also contended that “this case squarely presents an issue of national importance that was improperly decided” by lower court. It said utilities’ claims that “they are constitutionally entitled to recover so-called monopoly ‘market rates’ for providing access to essential bottleneck facilities is contrary to settled law and, if accepted, would render all rate regulation of monopoly enterprises unconstitutional.” Cable operators charged that utilities had been increasing pole attachment rates substantially since 11th Circuit ruling last spring. But utilities contended that they were entitled to get what market would bear.
StarGuide Digital Networks said it received patent for its Satellite Receiver/Router System and Method of Use for removable Ethernet cards utilized in satellite receivers as well as satellite receiver cards that provide Internet Protocol (IP) router functionality. Company said technology is essential for StarGuide 3 satellite transmission system, Coolcast streaming media aggregator and broadcaster and Transportal 2000 professional and corporate multimedia distribution system. Coolcast subsidiary uses IP over satellite technology to facilitate multicast distribution of streaming video and audio to unlimited numbers of broadband PC users.
Qwest Communications signed 3-year, $32 million contract to provide mysmart.com with Web hosting and development, dedicated Internet access, dial port connectivity, onsite project management, future DSL connectivity. Deal enables mysmart.com to offer nationwide Internet service at $9.95 per month. Agreement also allows mysmart.com customers to buy Qwest long distance service directly from mysmart.com. Qwest made equity investment of $5 million as part of long-term strategic alliance with mysmart.com.