Five of PCS bidders that stand to lose most from U.S. Appeals Court, D.C., decision on NextWave urged FCC and Attorney Gen. John Ashcroft to reach “immediate settlement” that would keep results of $16.9 billion Jan. re-auction intact. Alaska Native Wireless, Dobson Communications, Salmon PCS, Verizon Wireless and VoiceStream called on Ashcroft, FCC Chmn. Powell and Office of Management & Budget (OMB) Dir. Mitchell Daniels “to achieve an immediate settlement of the NextWave litigation.” Proposal laid out in July 24 letter would need acceptance of both govt. and NextWave. Plan would take part of money due from winning re- auction bidders and pay it directly to NextWave in return for its dismissal of claims to 90 licenses. Rest of money from auction winners would be paid to federal govt. Citing $4.7 billion NextWave originally bid for licenses in 1996, carriers proposed $4-$5 billion as starting point for settlement talks. While plan wouldn’t keep entire $15.8 billion bid on former NextWave licenses intact as income for U.S. Treasury, carriers warned that uncertainty over D.C. Circuit ruling meant that “the delivery of that money to the Treasury is now farther away than ever.”
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PASADENA -- Top ABC executives Stu Bloomberg and Lloyd Braun told TV critics here Sun. that year-round programming had become economic necessity -- as well as economic concern -- as networks aired fewer repeats and paid for more original content. While Braun said “I think that the summer has proven to be a very rich place to launch the right kind of show,” he also admitted: “It’s hard, it’s really hard. You're constantly challenged with looking at inventory and trying to figure out ways to pay for all of this. It’s one of the biggest challenges we face.”
Broadband deployment and swift resolution of NextWave spectrum issue were top agenda items Thurs. in discussions between Verizon Co-CEO Ivan Seidenberg and members of Congress, he told us in interview. Seidenberg said he was working Senate side of Hill to drum up support for broadband deregulation, which he said “has got to be the number one issue for our company.” He also said he would urge Congress “to show leadership” in NextWave case: “The government has to settle this thing… Make a business decision, move on and get the spectrum into the hands of the public.” With both Congress and FCC involved, it ought to be possible to “figure out a strategy,” he said.
Qwest executives hailed company’s customer service improvements in 2nd quarter in briefing Thurs. Qwest COO Afshin Mohebbi reiterated that company planned to begin long distance service in at least one state by early 2002, but said company wouldn’t play “favorites” on which state would go first. Earlier this week, spokesman in Quest’s Ariz. office reportedly said that would be first of 14 states in former U S West region where company would apply for long distance. In June, Qwest said 13- state test of its operation support systems (OSS) originally set to be completed in July wouldn’t be finished until Oct. at earliest (CD June 18 p6). (That 13-state regional test doesn’t include Ariz., which is conducting standalone testing). Fact that some parts of tests are taking longer than expected is nothing out of ordinary, Mohebbi said: “It’s something that we were thinking about and planning for.” In some cases, testers have been surprised because Qwest’s OSS infrastructure has been “passing some very critical tests that some operators in states like Texas and New York were failing,” Mohebbi said. Qwest isn’t “going to play favorites between the states in terms of who goes first” once OSS testing is done, he said. “States can decide how fast they want to act.” On customer service quality, Qwest said data for end of 2nd quarter for residential and small business consumers showed that number of those waiting for more than 30 days for installation of first phone line fell 91% from year-ago period. Mohebbi said number now was in “single hundreds” and was at lowest level in at least 7 years. More than 98% of 5.3 million installation commitments were met on time, best level in 5 years, company said. Qwest said more than 94% of total repair commitments were met on time, and repeat repairs within 30 days of first visit for customer service had dropped 22% from year-ago quarter. “A lot more work needs to be done,” Mohebbi said. “Progress is being made at a faster pace than anybody has expected.”
Satellite industry considers itself big winner, for now, in FCC 2 GHz band order that licensed 8 MSS operators in spectrum coveted by cellular industry and New ICO for terrestrial use (CD July 18 p11). However, most agree Commission delay in deciding more-complex issue of how terrestrial and satellite companies might use spectrum still is “battle that must be fought,” satellite attorney said. Each of geostationary and nongeostationary systems will be authorized to operate in equal 3.5 MHz segments in 1990-2025 MHz and 2165-2200 MHz. Bureau said it was delaying full implementation of 2 GHz MSS licensing order with regard to an incremental 0.38 megahertz of spectrum per licensee in each band until it resolved various pending proposals. Remaining spectrum may be auctioned or given to cellular companies in future rulemaking, which industry observers believe could come in companion order with 3G spectrum allocation. Meanwhile, CTIA Pres. Tom Wheeler applauded FCC’s decision to not act, for now, on request by New ICO to develop terrestrial spectrum using bands allocated to MSS.
Getting rare 3rd bite at legal apple, Comsat wants U.S. Appeals Court, D.C., to overturn decision by FCC and Congress requiring it to pay regulatory fees like other U.S. satellite operators. Comsat’s latest challenge, which one opponent said was “abusing” appellate process, is attempt to derail implementation of regulatory fee program adopted by Congress in 1994. FCC and Justice Dept., in joint filing as intervenor in case, asked court to reject Comsat appeal and uphold original order. Court had upheld FCC in first 2 decisions in 1997 and 1999. Question is FCC authority to impose regulatory fees on intergovernmental agencies and companies such as Comsat. Comsat is former U.S. Intelsat signatory, but now owned by Lockheed Martin Global Telecommunications.
Suppliers shipped 227,349 DTV sets to dealers in 2nd quarter, up 166.7% from 85,241 in same 2000 quarter, CEA said. Statistics include sales of DTV-ready sets and those with integrated decoders. Dollar shipments climbed 90.5% in quarter to $406.68 million as average selling price fell 28.6% to $1,789. For first 6 months of 2001, DTV sales to dealers rose 162.4% to 461,907 sets and dollar volume grew 95.8% to $868.76 million. CEA praised DTV sales performance in June, when suppliers shipped 90,973 sets worth $159.46 million. CEA said June increase represented 3rd straight month of sales growth in 2001 and 82% rise from units shipped in June 2000. However, CEA said suppliers shipped 3.1% fewer DTV sets in 2nd quarter than in first (227,349 vs. 234,558) and dollar volume declined 12%. Nevertheless, CEA Pres. Gary Shapiro said 2nd quarter’s strong finish was proof that “consumers are clearly sold on digital quality.” He said “strong momentum” in DTV set sales should serve as “call” for broadcasters and other content creators “to provide more high-quality digitally originated programming” and for cable industry to resolve must- carry and cable-DTV product compatibility issues.
Metricom, which filed for Chapter 11 protection earlier this month, said subscribers for its high-speed, wireless data service Ricochet reached 34,500 as of June 30, 57% increase over quarter ended March 31. Subscribers for its original 28.8 kbps service totaled 16,700 in 2nd quarter. Metricom attributed growth in part to its new 128 kbps local service offering in San Diego for $44.95 per month.
CTIA told FCC Chmn. Powell that Commission should defer granting any 2 GHz mobile satellite service (MSS) license until agency considered CTIA petition asking for reallocation of that spectrum to “more efficient uses” such as 3G. If Commission moves ahead with licensing “contrary to CTIA’s position,” wireless industry seeks certain safeguards that would keep options open if Commission ultimately addressed group’s petition. CTIA petition for rulemaking itself was response to petition by New ICO earlier this year asking to be allowed to develop terrestrial spectrum using bands allocated to MSS operators (CD April 4 p1). Industry source said CTIA petition appeared to be group’s positioning itself for possibility that FCC would not grant terrestrial use request by New ICO, rendering wireless industry’s subsequent request virtually moot. Some at FCC appeared to be questioning whether issue of MSS terrestrial use should be considered at all now, source said. CTIA Pres. Thomas Wheeler told Powell that if MSS licensing decision were made now, FCC should: (1) State that each 2 GHz MSS license was granted subject to “any rulemaking proceeding that impacts this band.” (2) Confirm that any 2 GHz MSS license was for provision of “satellite service only, consistent with existing MSS service rules, and that terrestrial use such as that proposed by New ICO is not permitted.” (3) Clearly limit any 2 GHz MSS licensee that might start to provide service to 5 MHz of spectrum consistent with MSS service rule proceeding. CTIA said that under current rules, first licensee that began service can use entire 70 MHz of spectrum until subsequent licensees started. Due to “current spectrum constraints, that is not an efficient use of spectrum,” CTIA told Powell. “It would be more appropriate for the Commission to clarify that a licensee is only entitled to use 2.5 MHz of spectrum in each direction, consistent with its findings in the MSS service rules order.” Each licensee should be restricted to location within MSS band that “the Commission decides will best further the FCC’s broader spectrum management needs.” (4) “Consider applying additional milestones to the 2 GHz licensees in light of the changed conditions that have developed since plans for this band were originally crafted,” CTIA said, if it moved ahead with MSS licensing. CTIA said licensees should have to demonstrate “early in the process” that they could relocate and compensate incumbent users in band. Also, if 2 GHz MSS licensee missed milestone or withdrew application, Commission “should clarify that the abandoned spectrum reverts to the FCC to be made available for other services,” instead of becoming available to remaining MSS licensees.
FCC said it wants to “refresh the record” on outstanding petitions for reconsideration of 1996 Local Competition Order that was held up for years in courts. Order implemented interconnection rules required by Telecom Act. Agency said remaining petitions dealt with 2 key issues: (1) IntraLATA toll dialing parity under Sec. 251(b)(3), and (2) Network change disclosure rules under Sec. 251(c)(5). “Because many of these petitions were filed some time ago, the passage of time and intervening developments may have rendered the records… stale,” agency said. In addition, some issues raised in those petitions “may have become moot or irrelevant in light of intervening events.” FCC asked parties that filed original petitions to identify in writing issues they still considered relevant. It said petitioners could add new information or arguments to original filings if they felt it was necessary. If parties don’t respond, FCC will consider old petitions withdrawn and will dismiss them. Deadline for petitioners to file updated information is 30 days after agency publishes notice in Federal Register.