ANAHEIM -- New communications programs with contracts totaling billions are expected to be unveiled in next 2 fiscal years, Defense Information Systems Agency (DISA) officials said Wed. at MILCOM 2002 convention here. Procurement related to horizontal integration of Dept. of Defense (DoD)-wide “net-centric enterprise services” is “couple-of-billion-dollar initiative,” DISA Chief Technology Officer Dawn Myerriecks said on panel discussion. Emphasizing importance of announcement to private sector, she said: “Those of you from industry, I hope your ears just perked up.”
SBC/Ameritech told FCC last week that state court in Mich. had issued temporary restraining order (TRO) that barred carrier from filing wireless 911 tariff. Ameritech planned to file tariff in Mich. that would allow it to recover costs from public safety answering points (PSAPs) for Phase 2 of Enhanced 911. Ameritech had told FCC earlier that it had to ask Mich. PSC for authority to charge local 911 dispatching centers for every 911 call placed from cellphone. Company planned to charge fee to recoup costs of implementing wireless E911 location capability, contending it was entitled under Telecom Act to obtain such cost recovery. But on Aug. 30, Mich. Communications Directors Assn. and Barry County Central Dispatch Authority filed complaint and motion for TRO against Ameritech and Emergency Telephone Service Committee’s CMRS Committee in 5th Judicial Circuit Court in Mich. seeking to enjoin Ameritech from filing wireless E911 tariff, which court granted. They cited state statute that lets commercial mobile radio service (CMRS) providers recover costs for E911 service from state fund. Ameritech told FCC in ex parte filing last week that it wasn’t CMRS provider and, as result, that statute didn’t apply to it. Hearing is set for Oct. 14 on whether TRO should be lifted or continued as preliminary injunction. Ameritech said it planned to meet with county, PSC and state legislative staffers to discuss best way to implement Phase 2 of wireless E911 without disrupting service. SBC told FCC earlier that main form of cost recovery it planned for E911 was through interconnection agreements, although many states give wireless carriers ability to purchase that service from tariffs.
World Cyber Games USA National Finals are scheduled to be held Sat. and Sun. in N.Y.C. at Web2Zone downtown. Two-day gaming competition is to feature America’s best gamers as chosen in preliminary competition rounds in Atlanta, Dallas, San Francisco. Gamers are to battle one other for one of 13 spots on U.S. National Gaming Team. Winners of U.S. National Finals win trip to Daejon, S. Korea, to compete in International WCG 2002 Championships Oct. 28-Nov. 3.
EchoStar-Hughes deal probably will be “blocked,” Lehman Bros. said in report. Lehman said it was pessimistic about deal’s chances because of: (1) EchoStar-Hughes’ lack of positive momentum with regulators or politicians. (2) Apparent use of narrow definition of market scope by Dept. of Justice (DoJ) Antitrust Chief Charles James. Approval “likely hinges on countervailing efficiency claims,” Lehman said. (3) Speculation that DoJ is researching how to defend itself against EchoStar lawsuit. Despite that, DoJ process appears to be nearing close, Lehman said. Though final decision still could take additional 6-9 months, preliminary ruling is expected this month, report said. FCC and DoJ probably will issue decision around same time, but DoJ probably will act first, report said. Date for completion of deal is Jan. 21.
Telewest Communications, U.K. media group, said it reached restructuring agreement with ad hoc committee of bondholders under which all outstanding debt issued by company representing $5.48 billion of debt will be cancelled and exchanged for ordinary shares representing 97% of issued ordinary share capital of company. Preliminary restructuring agreement is nonbinding, it said, and subject to conditions, including agreement among Telewest, bondholder committee and Telewest’s senior lenders.
DVD chipmaker ESS Technologies sued Taiwanese chipmaker MediaTek for infringement of copyright on firmware used in ESS’s Swan and Vibratto chips. Suit, in U.S. Dist. Court, San Francisco, seeks damages, preliminary and permanent injunction to stop MediaTek’s chips and DVD players containing them from entering U.S.
Madster P2P service (formerly Aimster) is hardly used for music sharing, its owner said in asking judge for 30-day extension to respond to music industry draft preliminary injunction on file sharing. “I estimate 99% of Aimster messages are simply private messages being exchanged among users, and not downloads at all,” John Deep told court. He also said Madster, unlike Napster, had no central database for filtering, and users encrypted their names and messages, severely limiting company’s ability to control system’s use. Requiring users to install software or provide information about themselves raises legal and financial problems, Deep said. U.S. Dist. Judge Marvin Aspen, Chicago, ruled that music companies were entitled to injunction against contributory copyright infringement and that Madster’s reply to plaintiffs’ proposed language was due previous week. Deep said he told his Boies, Schiller & Flexner attorney, George Carpinello, Sept. 16 that he was considering hiring “alternative counsel.” Carpinello has asked to withdraw. Hearing is set for Tues. (Oct. 1), but Deep said he hadn’t found replacement counsel and needed more time because of case’s complex challenges and need for Madster’s bankruptcy judge to approve hiring counsel. He said in interview that proposed injunction was too harsh under Napster precedents and effectively would shut down Madster.
Gemstar reported preliminary 2nd-quarter loss of $953.8 million after more than $1 billion in asset write-downs as it prepared for Nasdaq delisting hearing. It posted consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) loss of $54.2 million, reversing $108 million profit year ago as revenue slumped to $271.1 million from $320.5 million. Major reason for EBITDA loss was recording of $113.5 million reserve against outstanding receivables from Scientific- Atlanta (SA). Latter had been licensee of Gemstar’s electronic program guide (EPG) technology for cable set-top boxes, but pact expired in late 1990s. Gemstar’s technology and licensing business had EBITDA loss of $83.6 million as revenue fell 24% to $51.4 million. In interactive business, which includes interactive program guide (IPG), Gemstar said it had EBITDA of $2.8 million vs. $455,000 loss year earlier as revenue increased 9% to $22.4 million. Media and services sector dropped $36.2 million in EBITDA to $26.7 million and revenue $34.6 million to $197.8 million. Downturn in EBITDA and revenue was tied to TV Guide Magazine and Superstar/Netlink C-band satellite businesses, Gemstar said. Superstar’s revenue fell to $18.5 million from $56.9 million as subscribers declined 21% from Dec. 31 to 436,000, Gemstar said. TV Guide suffered from decline in newsstand sales as revenue dropped to $101.3 million from $121.1 million year earlier.
Law firm of famed litigator David Boies asked federal judge to let it withdraw from defending music file-sharing service Madster, formerly Aimster. Move cast shadow over bankrupt company’s ability to help shape and to appeal preliminary injunction authorized by U.S. Dist. Judge Marvin Aspen against service.
Australian Competition & Consumer Commission (ACCC) released discussion paper in anticipation of govt.’s release of its telecom legislative package. Paper looks at how ACCC can provide guidance for market participants on prices for access to public switched telephone network (PSTN) originating and terminating services, Unconditioned Local Loop services (ULLS), local carriage services (LCS). Industry comments on how prices should be determined are due Oct. 18. ACCC said comments were part of preparation for pending govt. initiatives that would require it to establish model terms and conditions, including prices, for access to PSTN, ULLS and LCS. Paper doesn’t set prices for those services. ACCC said it planned to develop indicative prices in early 2003 after issues on how such prices should be set were resolved. Commission said indicative prices “would only be used for the purposes of providing information and guidance to the market, and would not be binding in any arbitral processes that may arise.” ACCC Chmn. Allan Fels said he hoped publishing indicative prices would encourage developing more open and transparent telecom industry and let parties reach commercial agreement without need for arbitration: “The ACCC sees indicative prices as being a reference point which will assist parties to resolve any differences encountered when negotiating the terms and conditions of access and will also encourage parties to give undertakings to the ACCC.” He said while any indicative prices published weren’t binding upon parties or ACCC, if disputes were referred to ACCC, they should be resolved more quickly by having published guidelines. Currently, Commission determines PSTN and ULLS access prices on annual basis through use of economic cost modeling. It said undertakings including reasonable terms and conditions could complement establishing of indicative prices by providing long-term certainty and information on pricing of services to marketplace. ACCC said its preliminary approach to setting indicative prices for PSTN and ULLS services would involve using price for first regulatory period, then applying adjustment factor to calculate indicative prices for following 3 regulatory periods.