Motorola said Fri. it will unveil its iRadio satellite car radio system at Consumer Electronics Show at Las Vegas Convention Center this week. New car radio system is one of many digital radios that companies are planning to compete with XM and Sirius Satellite Radio for customers, industry officials said. IRadio, developed by Motorola Telematics Unit is expected to offer satellite services and interact with Internet through digital cellular networks which are primarily used for voice calls. Company is hoping to integrate iRadio with satellite navigation systems and emergency service products that are standard in many cars and trucks. CES is being used to showcase prototype with hopes of attracting manufacturer of car audio products, firm said. Motorola believes “right company” could have products ready for introduction to marketplace in one year, spokesman said.
Cyclone-3 rocket carrying 6 Russian communications satellites failed after launch Thurs., resulting in loss of all 6 spacecraft. Spokesman for Strategic Missile Forces said first and 2nd stages of rocket functioned normally, but 3rd failed. Launch failure from Plesetsk cosmodrome in Russian Arctic is 2nd in 2 months for agency, as EarthWatch lost satellite in Nov. 21 launch on Cosmos-3 from Plesetsk (CD Nov. 24 p4). Satellites burned up after re- entry into atmosphere, scattering debris into Arctic Ocean, but officials said debris caused no damage. Russian Aerospace Agency suspended launches on Cyclone-3 rockets until agency can determine cause of failed launch, agency spokesman said. Similar failure nearly cost agency 6 Strela military satellites 2 years ago, but agency saved them.
After a year of tough negotiations and numerous retransmission consent extensions, Comcast and Disney announced Fri. agreement in principle on carriage of over-the-air signals of ABC owned stations in MSO’s markets. Spokeswomen for companies declined to divulge terms of agreement, citing confidentiality. Agreement covers Disney products and services including ESPN, ESPN2, ESPN Classic, ESPN News, Disney Channel, Toon Disney, SoapNet and retransmission consent for ABC-owned stations in Philadelphia, N.Y., L.A., Chicago, Flint, Mich., and Toledo, Ohio. Current ESPN and Disney Channel programming agreements were set to expire Dec. 31, 2000. Latest in series of retransmission consent extensions was also due to expire Dec. 31 (CD Dec 7 p9). Characterizing agreement as “important” one, Disney Pres. Robert Iger said it’s “clearly in the best interests of our viewers on all the Comcast systems.”
R/L DBS Co., formerly Continental Satellite Corp., received 36-month extension from FCC Thurs. to start alternative DBS service that has struggled to get off ground during past 4 years. R/L argued in request for extension that legal haggling, FCC delays and changes in market had made it difficult to raise money to launch satellite and meet milestones. Company said it has invested $30 million in DBS business, including $14 million toward design and construction of satellite. EchoStar, which opposed Commission action, questioned whether $14 million payment “constituted significant effort” toward building $250 million satellite. EchoStar also said $15 million went toward acquisition of Continental stock by Loral and R/L DBS hasn’t made additional progress toward arranging remaining financing for satellite. Under terms of its construction permit, R/L DBS originally was required to be in operation by Aug. 15, 1999. Commission said additional time will allow company opportunity to implement “innovative, regionally targeted” DBS service.
Va. Corp. Commission approved price cap regulation plan for Verizon South (formerly GTE) that replaces indexed rate-of-return system in place since 1995. Under new cap system, approved Thurs. with effective date Mon., carrier’s basic exchange rates are frozen through 2003. Rates for other noncompetitive services are under caps indexed to 50% of gross domestic product price index, with annual adjustments. Competitive services are flexibly priced. Carrier won’t be allowed any rate increases if it fails to meet state service quality standards. Earnings aren’t regulated. Plan for state’s 2nd largest incumbent telco is similar to plans for other large Va. incumbents. Commission in mid-Dec. paved way for adoption of price caps by approving settlement providing for $200 million refund to customers of overearnings under previous earnings-based plan.
January 2, 2001 by Mike Feazel and Tack Nail|Miscellaneous
VSB/COFDM report sent to key broadcasters late Fri. included “some good news and some bad news” for both DTV modulation systems, we're told. Reports, based on field testing completed in mid-Dec., were said to have been adopted unanimously by technical groups, which include VSB critic Sinclair Bcst. “I think it was pretty well balanced,” one official familiar with report said. He discounted claim that report strongly supports VSB (CD Dec 29 p4). Technical groups preparing report have kept tight lid on results, with even steering committee members generally not told in advance, we're told. In letter of appreciation to technical group members, Project Chmn. Gary Chapman of LIN TV and Vice Chmn. Craig Dubow of Gannett said they're “confident that the process was inclusive, fair and scientifically sound,” but they admitted that “even these most comprehensive and authoritative tests cannot fully resolve all issues. Opinions may differ as to the precise implications of the data.” Steering Committee is to meet Jan. 10 to discuss results and submit reports to MSTV board. Then, series of meetings will lead up to joint session of NAB and MSTV boards Jan. 15 in Carlsbad, Cal. Broadcasters spent $2.1 million on testing of competing DTV modulation schemes, following what they acknowledged to be “stalemate” as result of dispute over benefits of each system. TV group CEO told us “the direction we take will be charted” at industry summit of station executives in Washington Jan. 11. But, he said, unless study shows COFDM with “an overwhelming preference” industry should proceed with VSB. Then, he said, “we will need to press the FCC very, very hard” for such things as digital must carry and TV networks for more digital programming.
Fla. PSC approved BellSouth plan to refund $48 million to residential and business customers. Refund is final step for BellSouth to complete $209 million refund required under 1994 rate settlement with PSC and Fla. Office of Public Counsel. Refunds will be paid out as bill credits of $3.50-$5 per residential line and $10-$15 per residential line, and are to be completed by Feb. Meanwhile, PSC ordered prepaid calling card provider RJM Card Services to show cause within 21 days why it shouldn’t be fined $22,000 or have its operating authority cancelled for PSC rule violations. Company is accused of failing to list all surcharges and fees on its prepaid cards and of ignoring PSC staff inquiries regarding complaints against company.
Covad Communications will trim additional 400 from its workforce, restructuring its Covad Business Solutions div. as part of previously-announced initiative to reduce this year’s operating costs by 20-30%. Costs of restructuring are included in estimated $20 million 4th quarter restructuring charge. Company “needed to consolidate and streamline operations to meet our drive to profitability goals,” said Covad Chmn. Chuck McMinn. Covad will also close about 200 central offices, affecting 1.5% of subscriber base. Staff reduction comes after Nov. 27 reduction of 400, another 14% of company’s headcount.
Fla. PSC elected Leon Jacobs new chmn., effective Jan. 2, succeeding Terry Deason, who stays on as commissioner…. Fla. Gov. Jeb Bush (R) reappointed Comr. Lila Jaber to full 4-year PSC term; Jaber was named to PSC in Feb. to complete term of Julia Johnson… Iowa Utilities Board named Judi Cooper acting exec. secy., replacing retiring Raymond Vawter… Jay Walker stepped down as vice chmn., Priceline.com, after becoming CEO, Walker Digital… Arjun Valluri becomes sole CEO, Intelligroup after Ashok Pandey resigned as co-CEO and board member.
National Assn. of Minorities in Communications (NAMIC) Foundation partnered with eBay to raise funds through web site www.ebay.com/charity for its “Digital Bridge Alliance (DBA)” initiative. Telecom content and distribution companies can donate items to be auctioned at web site with proceeds benefitting initiative, NAMIC said. DBA initiative was launched this year by NAMIC to “raise awareness and reinforce the value of home computers and Internet access among African-American, Hispanic and Asian-American/Pan Pacific households.” Auction site featuring NAMIC’s charitable initiative was launched at recent Western Cable Show. Alliance has been endorsed by NCTA, Cal. Cable TV Assn., Walter Kaitz Foundation and National Assn. of Minority Media Executives, NAMIC said.