Federal Aviation Administration (FAA) began testing ultra-wideband (UWB) devices last week in effort to make initial assessment by year-end on potential impact of new technology on avionics systems. FAA, along with Depts. of Transportation, Defense and NASA, is among agencies that expressed concerns about potential interference of UWB in safety-of-life frequencies. “We do anticipate that there will be some problems based on what we know about UWB types of devices,” FAA Program Mgr. George Sakai said: “To what degree, we don’t know. This is why we needed to do some actual testing.”
Complete vote count in razor-close contest for one of 2 new seats on Ariz. Corporation Commission produced reversal of preliminary election night results. Final results, including hand-counted early and absentee ballots, showed former state Rep. and retired agricultural consultant Mike Gleason (R) defeating former state Sen. George Cunningham (D) 50.9% to 49.1% for 2-year term on agency. Election night results had indicated Cunningham won. Gleason’s victory margin exceeded half-percent figure that would have triggered recount. Some 300,000 ballots had to be hand-counted, producing delay in final results. Meanwhile, defeated Ga. PSC Comr. Lauren McDonald (D) demanded recount after complete election tally narrowed his margin of defeat to less than 1%. Winner was Duluth (Ga.) employment recruiter Angela Speir (R). Recount could be completed next week.
Israeli Dist. Court will allow bondholders and bank lenders for Gilat Satellite Networks to meet to approve arrangement designed to rid company of debt, it said. To allow meetings, current court proceedings were delayed until Jan. 26. Primary lenders and bondholders already had approved plan, but finalized agreements must be approved by majority. Preliminary arrangement would convert majority of $490 million debt to shares. Bondholders and lenders are expected to meet mid-Jan.
CHICAGO -- Policy committees advanced only one telecom resolution, addressing broadband content neutrality, as state regulators met here Mon. for National Assn. of Regulatory Utility Comrs. (NARUC) Annual Meeting. Resolutions addressing universal service portability and wireless consumer disclosures failed, but for widely different reasons.
BellSouth said it won preliminary injunction Mon. in U.S. Dist. Court, Atlanta, against Momentum Business Solutions, which BellSouth accused of misrepresenting itself, either as affiliated with BellSouth or providing products and services endorsed by BellSouth. “We received hundreds of complaints from customers that detail occurrences of Momentum sales representatives falsely claiming to have an affiliation or billing relationship with BellSouth,” said David Scobey, pres., BellSouth Small Business Services. Momentum called suit “another unsuccessful move by BellSouth to stifle competition” and said it was “genuinely pleased with the court’s order, which basically enjoins Momentum from activities we have not done and will not do.”
Vivendi Universal Publishing’s (VUP) Games Div. said it expected to report 22% sales growth in 3rd quarter ended Sept. 30. VUP said growth came “primarily” from “the Warcraft III launch on PC in July 2002 and the success of The Thing and Crash Bandicoot on console.” But VUP said it expected to report overall revenue of 1.211 billion euros in quarter -- down 1% from 1.218 billion euros year ago. Result doesn’t include B&B and Health divisions sold in June, it said. Company has been looking to sell all of VUP with exception of Games division. Results reported by Vivendi Universal were only preliminary, unaudited sales figures for quarter and it plans to announce actual results later this month. Vivendi Universal also said it expected to report 9% drop in revenue in its Universal Music Group (UMG) -- to 1.3 billion euros from 1.5 billion euros year earlier. Company said: “Sales of recorded music increased slightly in constant currency terms but were offset by higher provisions for returns and lower manufacturing revenue.” It said it “increased its global market share in a difficult period for the music industry.” While U.S. -- world’s largest music market -- saw industry decline 12.4% in quarter, according to SoundScan data, company said UMG’s share of current albums “increased to an unprecedented 31.4%.” For its Vivendi Universal Entertainment (VUE), which includes company’s film and home video divisions, it expects to report 7% revenue growth in quarter to 1.3 billion euros from 1.2 billion euros in year. Not including USA Networks acquired in May, company said it expected revenue to decline 24% primarily due to fewer theatrical releases.
WorldCom announced Tues. that additional restatement of earnings was likely, raising total to $9 billion. WorldCom already had announced 2 restatements for total of $7 billion. Company said it had advised SEC during settlement discussions that it expected additional restatement “based on very preliminary past accounting.” Company said it still was completing its review and once it had final figure it would make it public.
Vivendi Universal said it was cooperating with U.S. Attorney’s Office, Manhattan, which is conducting criminal investigation involving Vivendi and its accounting practices under former CEO Jean Marie Messier. Company also is under similar scrutiny in its home country of France. SEC’s office in Miami, which has been conducting informal inquiry, will be coordinating its activities with U.S. Attorney’s investigation, company said: “Vivendi Universal intends to cooperate fully with those preliminary investigations.”
Federal judge adopted in full injunction language proposed by music industry against Madster, requiring file-sharing system formerly known as Aimster to shut down if it couldn’t totally stop duplication of copyrighted works. Dist. Judge Marvin Aspen issued preliminary injunction last week after Aimster operator John Deep declined judge’s invitation to join plaintiffs in submitting suggested language for order. Aspen also ruled Madster must take technical measures to ensure protected works weren’t copied and to monitor system to exclude protected works, and must report monthly to court on compliance. “This is another clear-cut legal victory for copyright owners and everyone who wants to see the legitimate online market grow,” RIAA Pres. Cary Sherman said.
Consumer intentions on buying TV sets rose slightly in Oct. from Sept., according to preliminary data in Conference Board monthly survey. Of 5,000 households polled, 7.1% said they planned to buy TV set in next 6 months, compared with 6.6% in Sept., 7.3% in Aug., 6.8% in Oct. 2001 . Consumer Confidence Index reached its lowest level since Nov. 1993, Conference Board said: “The outlook for the holiday retail season is now fairly bleak. Without the likelihood of a pickup in consumer spending, an already weak economic recovery could weaken further.”