Stewart Verdery, ex-office of Senate Majority Whip Nickles (R-Okla.), named staff dir., Senate Republican High-Tech Task Force… Preston Lewis, ex-HBO, named dir.-mktg. and retail, MTV… Changes at A&E: Barbara Rubin, ex-Rysher TV, appointed vp- legal and business affairs, new West Coast office; Sal Petruzzi, ex-Dan Klores Assoc., named dir.-public affairs… Gary Levine, ex-Icebox, named exec. vp-original programming, Showtime Networks, replacing Mark Zakarin, who remains consultant and will write pilot scripts… Reelected on Universal Service Administrative Co. board: Frank Gumper, Verizon, chmn.; Allan Thomas, Ia. Utilities Board, vice chmn.; Cheryl Parrino, CEO; Edwin Eichler, Pigeon Telephone, secy.; Anne Bryant, National School Boards Assn., treas.; Scott Barash, gen. counsel, asst. secy.; Robert Haga, vp-operations, asst. treas… Named partners of Tongour Simpson: James Green, ex-Patton, Boggs and FCC; Brad Holdsclaw… Promotions at Lifetime: Kelly Abugov to senior vp-programming, Marian Effinger vp-reality programming, Paul Noble to vp-film acquisitions and scheduling… Changes at American Assn. of Ad Agencies board: Brendan Ryan, FCB Worldwide, named chmn.; Kenneth Kaess, DDB Worldwide, vice chmn; Marsha Lindsay, Lindsay, Stone & Briggs Advertising, secy.-treas. Named dir. at large: Susan Gianinno, Transatlantic and D'Arcy; Anthony Hopp, Campbell- Ewald; William Whitehead, Bates Advertising.
Country of origin cases
FCC could issue 11 Ka-band rulemaking and orders as early as today (Wed.), Commission spokesman said. Decisions would grant intersatellite link (ISL) authorizations and impose construction milestones on several Ka-band licensees. New milestones would require companies holding licenses to sign construction contracts for Ka-band satellites within one year and begin launch operations shortly thereafter or face losing licenses unless there were “extenuating circumstances” that forced delays, spokesman said: “The idea is milestones that are established should be kept.” Actions could set tone for 2nd-generation broadband market, industry sources said, and companies are working privately on compromise to stave off FCC-mandated order.
FCC’s closely watched C- and F-block auction closed Fri., raising $16.9 billion, of which more than half will be paid by Verizon Wireless. Verizon and designated entities that have ties to Cingular and AT&T Wireless accounted for 83% of net revenue in auction of 422 licenses that started Dec. 12. Verizon filled in spectrum gaps in critical N.Y.C. market. It bid $8.78 billion for 113 licenses, nearly $4.1 billion of that for two 10 MHz licenses in N.Y. Revenue from auction surpassed lower end analyst expectations of $11 billion and surpassed record of $9.6 billion raised in 1996 C-block auction. Industry observers said Fri. they expected some large carriers’ financial arrangements with designated entities would draw challenges after bidders filed more detailed information with FCC on ownership structures. More broadly, several sources said they expected close of auction to refocus attention on wireless spectrum cap.
New 20.20 series communications satellite from Space Systems/Loral is latest in series of extra-large birds with more transponders and more power. Satellite will allow use of multiple frequencies from same orbital location, said Daniel Collins, senior vp-worldwide mktg. and sales. Limited number of orbital slots and Ka-band power requirements triggered need for larger, more powerful satellites capable of carrying high numbers of transponders, Collins told us: “This is envisioned to be a product of the future. We in the industry want to put more communications capacity on the satellite.”
European Commission (EC) urged State Dept. Fri. to be mindful of U.S. obligations under General Agreement on Trade in Services (GATS) when reviewing proposed merger transactions of Deutsche Telekom (DT), VoiceStream and Powertel. EC stipulated its concerns in communique to State Dept. Citing U.S. commitments under World Trade Organization (WTO) basic telecom agreement, communique said EC had “serious concerns” on some comments received by FCC concerning companies’ license transfer applications of companies. In particular, EC referred to concerns raised by Sen. Hollings (D-S.C.). It urged FCC not to heed requests that it should consider German govt.’s ownership in DT or DT’s market-opening activities in Germany. “The European Union reserves its right to take any appropriate course of action should the FCC adopt such requests, and would oppose any action that would undermine the U.S. WTO commitments,” EC warned State Dept. It said market access “cannot be conditioned on the level of commitments in the originating country of the supplier or on the way these commitments are implemented.”
Provision of entertainment is merely incidental to cable operator’s demonstrated function of transmitting clear, viewable signal, N.Y. State Supreme Court Appellate Div. ruled in overturning state Tax Appeals Tribunal’s finding that 2 state cable operators were taxed properly as general business as opposed to transmission corporations. Acting on petition challenging tribunal’s finding by NewChannels and Upstate Community Antenna, court in 5-0 decision termed as “entirely irrational” tribunal’s conclusion that transmission was merely means by which cable operators conveyed their products to subscribers and therefore was incidental to their actual business of providing entertainment. Primary basis for tribunal’s conclusion that petitioner’s weren’t engaged in transmission business, court said, stemmed from its belief that focus of cable service wasn’t transmission of various signals but provision of entertainment. Court said record made plain that cable operators: (1) Have limited capacity to manipulate signals they capture from cable programmers and transmit to subscribers. (2) Have no control over content of signal received aside from getting “rid of ghosts,” clarify signal or amplify it. (3) Can’t dictate when or how many times particular program will be broadcast. (4) Can’t sell ads on local or premium channels they offer. With exception of local origination programming they are required to carry, petitioners offered no original programming, court said. NewChannels and Upstate Community Antenna filed suit after tribunal upheld state Dept. of Taxation & Finance decision to assess deficiencies against 2 companies on ground that they should have filed tax returns as general business corporation rather than transmission corporation.
NBC and Hearst-Argyle TV will combine their production and distribution units under new agreement, terms not disclosed. New venture, to be headed by Ed Wilson, pres. of NBC Enterprise, will allow partners to focus on producing original programming for cable and weekend syndication market, Wilson said.
LAS VEGAS -- Broadcasters and other regulated industries can expect from new FCC “a greater feel for the law… and a more humble approach,” FCC Comr. Furchtgott-Roth said here. Commission will regulate “only what the law requires… and it will be a greater day at the FCC,” he told ALTV panel Mon. afternoon. Michael Powell, who had been FCC chairman for just a few hours, deferred first question from ALTV’s David Donovan -- on what changes broadcasters could expect under Bush Administration -- to his Republican colleague, after which Powell said “my final sincere hope” is that agency would become “more efficient and responsive” to needs of those it regulated: “The greatest enemy of regulation is… uncertainty.” After panel, longtime Washington lawyer told us: “We're in for a sea change of deregulation if you follow their comments to their logical conclusion.”
Verizon resubmitted its application to FCC Tues. to offer long distance service in Mass. under Sec. 271 of Telecom Act. Verizon Senior Vp Thomas Tauke said new version incorporated company’s original application “and adds further evidence demonstrating that the company provides competitors nondiscriminatory access to DSL-capable telephone lines.” Verizon filed original petition Sept. 22 but withdrew it Dec. 18 after FCC Common Carrier Bureau said it didn’t have enough information to substantiate Verizon’s claim that it offered competitors nondiscriminatory access to DSL lines. Similar concerns were expressed by Dept. of Justice in Oct.
Arianespace Flight 137 finally got off ground Jan. 10 as Eurasiasat 1 was launched into orbit from Kourou after 4 delays. Launch originally had been scheduled for Dec. 8.