BOSTON -- Despite overall economic downturn in telecom sector, international cross-section of fixed wireless industry at preliminary session of Wireless Communications Assn. (WCA) conference here said networks in Latin America and Europe were moving forward, with some changes. Regulators in some cases aren’t immediately seizing licenses if terms aren’t met and govts. are turning more frequently to so-called beauty contests rather than auctions, participants said Sun. Biggest change may be that both regulators and financial backers are expecting realistic business plans with controlled buildout, they said. Among challenges in Europe are that unbundled local loop regulations in some cases can make it easier for competitors to lease network elements from incumbents for DSL, making wireless network buildout less compelling, said Arturas Medeisis, radiocommunications expert with European Radiocommunications Office. “So far, we haven’t seen true success stories yet,” he said of Western European markets.
EchoStar asked U.S. Dist. Court, Denver, to delay DirecTV lawsuit for 60 days so companies could continue to negotiate sale, as expected (CD June 1 p4). Analysts said move would open door for EchoStar to bid along with News Corp. for DirecTV. “Recently representatives of GM and EchoStar have conducted preliminary discussions as to whether a transaction leading to a business combination of EchoStar and DirecTV would be mutually desirable,” court filing said. Meanwhile, SG Cowan report said Dept. of Justice antitrust review of Gemstar’s interactive program guide could have negative impact on News Corp. bid. Market value of Gemstar is $16 billion, with 25%-35% or $4-$5.5 billion going to Sky Global for News Corp. bid for DirecTV. However, valuation of Gemstar could be “adversely affected” by regulatory action, which could hurt News Corp. bid for DirecTV, SG Cowan said. SG Cowan pointed out DoJ hadn’t made it clear whether it would go any further than investigate Gemstar. However, if it concluded that violations had occurred, Justice could pursue court-ordered injunctions or other legal remedies. SG said conflicts often can be resolved with consent decrees.
USTA questioned why FCC extended deadline until June 30, rather than USTA’s recommended Sept. 30, for compliance with requirements of CALEA. In comments filed Mon., USTA said it supported Commission’s determination that additional wireline carriers should meet requirements for extension of deadline. However, USTA said, extension for wireless carriers is Sept. 30 and “the Commission provided no explanation as to why it was extending the preliminary deadline to June 30” instead. Later deadline would provide enough time for FCC staff to consider merits of each CALEA petition, USTA said: “Carriers need certainty regarding the capability requirements and the compliance date.”
CTIA said it had signed contracts for research under first phase of its Cooperative R&D Agreement (CRADA) with Food & Drug Administration on cellphone health effects. Studies will provide followup research on issues raised by earlier study overseen by Wireless Technology Research and funded by CTIA over 5-year period, which had become caught up in controversy and raised preliminary issues for further study. Recipients of CRADA contracts are: (1) Integrated Laboratory Systems, Research Triangle Park, N.C. (2) Interuniversity Center on Interaction Between Electromagnetic Fields and Biosystems, Naples and Rome, Italy. (3) Fraunhofer Institute of Toxicology and Aerosol Research, Hannover, Germany. Studies are expected to take up to 2 years to complete and cost more than $1.5 million, CTIA said. It said that “industry fully funded all of the studies recommended by the FDA.” Last month, in news conference with Sen. Lieberman (D- Conn.), Rep. Markey (D-Mass.) had emphasized need for changes in CRADA to ensure that CTIA followed FDA recommendations on specific research proposals (CD May 22 p1). He stressed that independence of FDA’s judgment shouldn’t be compromised. CTIA addressed some of those concerns, saying that changes in scope of work or direction of research “can only be made with FDA approval.” FDA actively will “oversee the research through a series of regular reports and can request additional reports as necessary.” CTIA said scientists themselves would “own their research” and contracts required results to be published in peer-reviewed scientific journals. Markey’s office wasn’t available for comment.
In bid to give national scope to historically local controversies, environmental groups are mounting campaign at FCC to compel more detailed environmental reviews of wireless towers. Friends of the Earth (FOE) and Forest Conservation Council have filed petitions to deny on near-weekly basis at Commission since late March, holding up final approval on 31 sites. Groups also want FCC to not approve future wireless towers until it conducts environmental assessment of its own antenna licensing program. Sudden influx of petitions -- on towers proposed by American Tower, Crown Castle, SBC and others -- appears to be new tactic by groups, which haven’t engaged in such national effort before, sources said. One FCC official said that in last 4 years, only handful of such petitions had been filed, with most centering on historic preservation issues. But recent petitions run much broader gamut, criticizing lack of detail from tower constructors on impacts ranging from migratory bird traffic to potential human health effects from radiofrequency (RF) emissions.
Vodafone reported 87% increase in revenue before taxes to $5.72 billion in year ended March 31. But in view of purchases such as last year’s merger with Germany’s Mannesmann, world’s largest carrier posted $7 billion loss for year, it said in preliminary results announced Mon. Proportionate customers rose 56% in 12 months ended March 31 to 83 million.
General Accounting Office (GAO) confirmed in report Tues. that there wasn’t yet enough collected research to establish link between radiofrequency (RF) emissions from cellphones and adverse health effects. But report, requested by Sen. Lieberman (D-Conn.) and Rep. Markey (D-Mass.), also said lack of research results meant health effects couldn’t necessarily be ruled out. GAO outlined series of recommendations, ranging from how Food & Drug Administration (FDA) and FCC could make more safety information available to consumers to how FCC could revamp its specific absorption rate testing guidance. Markey, ranking Democrat on House Telecom Subcommittee, also stressed need for changes in cooperative R&D agreement between FDA and CTIA to ensure that trade group follows FDA recommendations on specific research proposals. “In no way should the FDA’s independent medical judgment be compromised,” he said at news conference.
Skybridge is pushing FCC to quickly issue conditional licenses to 7 applications from 5 companies for Ka-band service because of rapidly “changing market conditions” and impending departure of 3 commissioners, Vp Mark MacGann told us in interview Tues. MacGann, Senior Vp-Business Development & Mktg. Charlene King and attorney Jeffrey Olsen addressed obstacles facing company following Commission announcement last Thurs. (CD May 4 p3) of proposed rulemaking for spectrum-sharing plan for nongeostationary satellite orbit (NGSO) and fixed satellite service (FSS) and to determine intraservice rules for new applications, including Internet, online access, data, video and telephony. MacGann said with much of company financing still expected to come from Wall St., Skybridge would like to show investors company was moving forward.
National Park Service is considering Triton PCS right-of-way application to build wireless telecom site at Cape Hatteras National Seashore, N.C. Preliminary staff review “indicates that the proposed facility will not have a significant impact on the quality of the human environment,” agency announced May 3. Comments are due July 2. -- (252-473-2111, ext. 132.)
U.S. Dist. Court, N.Y. granted preliminary injunction to Alcatel Fri. after Loral agreed to take companies’ lawsuit to arbitration. Alcatel sued Loral for alleged violation of contract by providing “confidential information” to Lockheed Martin. Parties agreed to order preserving status quo of agreements until April 26.