Cost of satellite launch insurance has risen and in some cases companies may be unable to secure it because of impact on aviation industry of terrorist attacks, industry and insurance executives say. Some companies such as EchoStar are turning to self-insurance, spokeswoman said. Terrorist attacks, including recent explosion of fertilizer plant in Toulouse, France, coupled with “increasing number of launch failures” and problems of Loral and Boeing rockets, have insurance companies “taking closer look” at policies for satellite industry, official said.
Broadcasters should hasten digital TV transition for sake of industry’s survival, FCC Plans & Policy Chief Robert Pepper said Tues. at Consumer Electronics Assn. conference in Washington. He acknowledged that “to date, the vast majority of broadcasters have met” on-air DTV deadline. However, “the real deadline in the statute is when 85% of consumers in a market can receive digital signals. What’s the rush for broadcasters? The rush is the survival of your business.”
FCC is widely expected to issue Further Notice of Proposed Rulemaking to examine more closely spectrum beyond main MMDS and Instructional TV Fixed Service (ITFS) bands as part of 3rd generation wireless decision-making, several sources said. Among spectrum blocks likely to be rolled into further notice would be mobile satellite services (MSS) issues teed up at Commission in CTIA petition for rulemaking last month asking for reallocation to “more efficient uses” of “underutilized” MSS spectrum at 2 GHz (CD May 21 p5). One source said further notice could come as soon as next month. From outset of 3G decision-making process, FCC has said it would consider broader array of spectrum than just that at 2.5 GHz used by MMDS and ITFS operators, but controversy over incumbents that would be moved from those bands has received most attention in recent months. Meanwhile, Dept. of Defense continued to take hard line against reallocating military spectrum at 1.7 GHz to commercial uses.
Top brass of VoiceStream and Deutsche Telekom, describing completion of DT’s acquisition at Seattle news briefing Fri., stressed combined companies’ plans to offer global roaming services and new wireless data applications. While VoiceStream, now part of DT’s wireless subsidiary T-Mobile, plans to expand its subscriber base, CEO John Stanton said it didn’t have to make acquisitions in U.S., although he didn’t rule them out either. “There is likely to be consolidation in the U.S. market,” he said. “We don’t need to do anything. We have the best position.” He repeatedly pointed to analog subscriber base of competitors such as AT&T Wireless, Cingular and Verizon Wireless as fertile ground for VoiceStream to woo new customers. Plans of AT&T and Cingular to move to GSM-based General Packet Radio Service for 2.5- generation systems provide particular leverage for VoiceStream to win customers on its existing GSM network, he said. Later this summer, company plans to start high-speed, wireless Internet service based on GPRS called “i-stream,” VoiceStream Pres.-COO Bob Stapleton said. Service will offer connectivity to mobile devices such as personal digital assistants at speeds of 28 to 56 kbps, he said. Using service, customers can boot up laptop with wireless data cards and make voice calls over laptop computers, he said. He also cited Ping Pong text-messaging service that VoiceStream introduced recently to target youth market. Company plans to introduce clamshell device with fold-out data keyboard that will allow both voice and data applications, he said.