Potential interference from 3rd generation wireless base stations on defense satellites isn’t only issue to be resolved before govt. can relocate military spectrum for commercial use, Dept. of Defense (DoD) said. Deputy Asst. Defense Secy. Robert Nutwell said DoD agreed with General Accounting Office (GAO) report that more information was needed before govt. could safely reallocate 1755-1850 MHz band for 3G wireless Internet. However, while satellite issue is critical, he said, “it is just one of many that must be resolved before national decisions are made regarding the possible use of this band… DoD’s nonspace systems provide essential military capabilities and must be given equivalent attention in sharing, segmentation and relocation studies, as they have in the DoD report.”
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BellSouth and NAB are among those urging FCC to deny requests of satellite radio companies XM Radio and Sirius Satellite Radio for special temporary authority (STA) to operate high-powered terrestrial repeaters. NAB Pres. Edward Fritts said that “the time for subterfuge by XM Radio and Sirius Radio is over… These companies must come clean with regulators and the American people on their true intentions for making satellite radio a viable business.” In filing at FCC, NAB said intent of satellite digital audio radio service (SDARS) applications was “undisputed -- terrestrial repeaters should be used only to reach areas where a satellite signal cannot reach.” Citing concerns of interference to Wireless Communications Service (WCS) operations, BellSouth (BS) told FCC that XM and Sirius hadn’t met burden of proof to demonstrate that there were “extraordinary circumstances” warranting grants of STAs and that grants would serve public interest.
Qwest plans to submit “comprehensive proposal” to General Services Administration (GSA) this week to offer long distance services in competition with FTS 2001 contract winners WorldCom and Sprint. Planned Qwest proposal is part of crossover program for $1.5 billion FTS contract and local Metropolitan Area Acquisition program that GSA opened Fri. with release of guidance documents. GSA said it would “immediately begin accepting contract modification proposals for additional competitors for long distance telecommunications services” and local telecom offerings. That means qualifying holders of MAA contracts can submit proposed modifications in their original contracts to offer services in cities other than those covered under their original contract or long distance services under FTS. FTS incumbents also now are free to propose local service offerings in select MAA cities. GSA said it would consider proposed contract modifications under processes laid out in new documents.
In last-min. flurry of filings at FCC on dual DTV must carry, broadcasters argue that cable operators will have enough excess capacity to carry analog and digital signals during digital transition. However, cable and DBS industries said broadcasters aren’t entitled to special rules giving them “free ride” at expense of operators or permission to violate operators’ First Amendment rights to offer programming of their and their viewers’ choice.
BellSouth said Fri. it would stay in payphone business until Dec. 31, 2003, one year longer than it had said earlier this year. BellSouth Public Communications said decision to lengthen transition period was “based on customer feedback from the first few months of the transition period.” BellSouth cited requests from customers, including several large companies with contracts that extend into 2003, that sought more time. Company said expanded timeline also would give more time to location provider customers to select other technologies or to choose alternative provider from other independent payphone operators in southeast. In Feb., when BellSouth announced original decision, it cited interest in focusing on core broadband, Internet and digital network offerings, as well as domestic wireless operations.
Consultant conducting regionwide 3rd-party test of Qwest’s operation support systems (OSS) told regulators of 13 participating states that end of test would be delayed again, to Nov. 2. KPMG Consulting originally had hoped to complete test by end of July, then changed date to Oct. 12. No specific factor was cited as causing latest delay. Mont. PSC Comr. Bob Rowe, test program chmn., said test was being run until there were “zero defects,” so completion date could change again.
Two-way wireless service combined with Gemstar-TV Guide International’s interactive program guide (IPG) will be available for TV sets by year-end, Gemstar CEO Henry Yuen told analysts in conference call last week. He didn’t identify TV supplier, but Gemstar, which merged with TV Guide in July 2000, formed @TV Media joint venture with Thomson. At time, Thomson also extended licensing terms for Gemstar’s electronic program guide (EPG) to 2010 and pledged to incorporate it into 30 million TV sets in N. America through contract period. Software development needed for 2-way service is complete, Yuen said. Two-way interactive TV originally was designed to be based on PageNet’s wireless paging transceivers. Gemstar signed agreement with PageNet in 1999 and said it planned to distribute IPG data along with other “time- sensitive” information using 900 MHz wireless paging technology. Gemstar also will have phone line version, Yuen said. Paging device is expected to be incorporated in tiny transceiver attached to TV. Gemstar, which already is testing 2-way service in some digital cable systems, received patents for 2-way wireless communication between TVs and central processing service in 1998.
Cal. Gov. Gray Davis (D) signed bill directing Cal. Horse Racing Board to develop rules for online or telephone “advance deposit wagering” on horse races by Jan. 1. Under AB-471 organizers of race meets next year can establish prepaid accounts for individuals and accept betting instructions from those persons by phone, Internet or “other electronic media.” Davis reversed previous policy against expanding gambling, aides said, because of changing legal climate and amendments to original bill that will improve working conditions for track workers who take care of race horses. Currently, Cal. allows on-site betting at 34 gambling sites, including racetracks, certain fairs and Indian casinos. Last year, Davis vetoed similar betting bill as expansion of gambling.
Defense Information Systems Agency (DISA) confirmed Thurs. it had rescinded Global Crossing $450 million network contract, for which 4 rivals had mounted challenges at General Accounting Office (GAO) in recent weeks. Defense Dept. agency provided no details of why Defense Research & Engineering Network (DREN) contract was being revoked just one month after DISA had made award. Contract is largest from federal govt. that Global Crossing had received and company had said it would create “world’s largest, single contiguous fiber optic network” to link defense labs, test centers, universities and other sites. DISA action comes at time when Global Crossing has been beefing up its govt. contract operations. DISA wouldn’t elaborate on next steps, but one option appeared to be that it could accept new bids for network agreement, several sources said. Network is designed to securely connect DoD supercomputer users via virtual private network.
Lucent announced after market close Thurs. that its bank group had eased terms of credit, giving company “green light to pursue its Phase 2 restructuring.” It said changes in financial covenants would allow it to record business restructuring and other charges needed for plan. Lucent will pursue plans to spin off Agere Systems but said it expected that to be delayed up to 6 months from original Sept. 30. Changes in conditions to spin off Agere included: (1) Requirement for positive EBITDA, defined by agreement, in quarter before spinoff. (2) Increase in cash Lucent must raise to complete deal to $5 billion from $2.5 billion with wider definition of type of cash-raising actions that would qualify for condition. Lucent said it could meet $5 billion goal through recently completed financing and other funding it expected. Company repeated contention that it would reach profitability and positive cash flow in fiscal year 2002. Credit facilities were arranged by J.P. Morgan and Salomon Smith Barney.