SBC/Ameritech told FCC that state court in Mich. had set hearing for Dec. 16 to make final ruling on preliminary injunction that ordered company not to file tariff connected with Enhanced 911 services. In meantime, Ameritech plans to offer “interim contract” to public safety answering points (PSAPs). SBC/Ameritech recently told FCC that 5th Judicial Circuit Court in Mich. had issued temporary restraining order that barred carrier from filing wireless E911 tariff. Company said it planned to file tariff in Mich. that would let it recover costs from PSAPs for Phase 2 of E911. Ameritech previously told FCC it had to ask Mich. PSC for authority to charge local 911 dispatch centers for every 911 call placed from cellphone. Company planned to use fee to recoup costs of implementing wireless E911 location capability. Mich. Communications Dirs. Assn. and local dispatch authority filed complaint and motion for temporary restraining order against Ameritech in Aug. Mich. Circuit Court recently entered preliminary injunction that ordered company not to file its retail tariff or carrier-to-carrier tariff with state PSC, Ameritech told FCC. “SBC Ameritech expects the judge to allow SBC Ameritech to recover its costs either through the current Michigan E911 fund or through a tariff,” filing said.
Charter, which said last week it had placed COO David Barford on paid leave in federal probe into accounting practices, estimated 3rd-quarter revenue rose 12.6% and operating cash flow 8.7% from 2001 pro forma results. Charter said it had provided preliminary information on 3rd- quarter revenue, cash flow and revenue-generating unit (RGU) growth in confidential conference call with its credit facility lenders, but because some media representatives obtained information, it was making information public. Company said it added 215,000 RGUs, with 150,000 digital customers and 150,000 of high-speed, partly offset by net loss of 85,000 basic customers. Revenue and operating cash flow growth resulted primarily from increased digital and high-speed data customers. Decline in analog customers was laid to competition from satellite providers, customer reaction to increased prices in rebuilt markets, and continued tight credit polices, company said. Charter said 4th-quarter 2002 guidance and finalized 3rd-quarter results would be announced in 3rd quarter earnings report Nov. 5.
After adding 101 Game Crazy (GC) departments at its video rental stores in 3rd quarter of year, Hollywood Entertainment (HE) now is looking to accelerate GC rollout significantly in many of chain’s more than 1,800 locations. In conference call with financial analysts Thurs., HE CEO Mark Wattles said company was preparing to add 100 additional GC departments in 4th quarter and 300 more in its next fiscal year after seeing increasingly strong results with new format that were above expectations. As of Sept. 30, HE had 169 GC departments up and running in select markets and now plans to have 569 in place by Dec. 31, 2003, Wattles said.
Preliminary DVD Forum standard for Internet-enhanced DVD players (CED Sept 26 p3) should be approved by year-end as Version 0.9, spokeswoman for Toshiba’s DVD Forum representative Hisashi Yamada told us. First products that enable DVD-ROM-like interactivity without PC should reach market year after DVD Forum’s approval of standard, she said.
Plasma display panel (PDP) prices will plunge as much as 30% next year as factories increase production and yields in enabling 42W to hit $2,000-$2,500 and 50W to drop to $3,000-$3,500, Pro AV Product Mktg. Dir. Alan Brawn said. New prices would be down substantially from current benchmarks for 42W and 50W PDPs of $4,999 and $9,499, respectively. In addition, Samsung’s 63W, which has shipped in limited quantities this fall, is likely drop to $9,000-$11,000 from current $18,000 street price, Brawn said. Specter of lower pricing in 2003 follows year in which PDP retail tags dropped sharply but appeared to stabilize for fall selling season. “When you initially start production, you're not operating at capacity so the cost of the product is pretty high, but that changes as the yields improve and production increases,” he said.
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.