VoiceStream reported late Mon. that it added 484,700 subscribers in first quarter, increasing its base to 4.4 million as of March 31. Carrier outlined preliminary results and said it would announce full financial report May 7. VoiceStream said it expected pending merger with Deutsche Telekom, which still awaits FCC approval and decision by Committee on Foreign Investment in U.S., to close May 31. Earlier this year, Deutsche Telekom told SEC that deal wasn’t expected to close until “at least” May 31. Meanwhile, VoiceStream said it expected consolidated service revenue for 2001 to grow 120-125% in 2001. It also anticipated cash flow losses to be less than $300 million for year, with most coming in first quarter.
Powertel released preliminary first quarter results showing it closed period with one million PCS wireless subscribers, up 108,000. Revenue and sales reached $151 million, 50% increase in year. Quarterly net loss narrowed to $47.8 million from $52.9 million.
Dates have been set for final reports in Qwest regionwide operation support system testing. KPMG Consulting preliminary results of 13-state regional test will be released June 8, followed by period for addressing exceptions, with final report Aug. 29. In separate Ariz. Qwest OSS testing project, preliminary results on system function will be released June 1 and on system capacity July 11, with final report July 27.
Third-generation DTV receivers showed significant improvement in reception capability over first- and 2nd-generation receivers, according to interim analysis by FCC Office of Engineering & Technology (OET). Using preliminary data collected in field study in Washington area, OET said median signal-to-noise ratio, which generally determines reception quality, improved by 2-3 dB overall and by 6-7 dB for sites with strong-signal, high-multipath characteristics, such as those in which COFDM was supposed to outperform U.S. 8-VSB system. OET said DTV signal was viewable without impairments for 99 of 100 sites for outdoor 30-ft. antenna, and 85% of sites with indoor antenna, even though only 27% of sites had high-quality NTSC picture. “Statistically significant” improvement was attributed mainly to improved channel equalizers in newer receivers. OET said new receivers meant indoor antennas in latest field study outperformed outdoor antennas in 1998. Field study data collection is about 50% complete in D.C. area, OET said, and similar study is planned for Baltimore area.
Allowing JumpTV to stream video of U.S. TV stations into Canada “could cripple, if not destroy, the U.S. and Canadian successful system of free, local, over-the-air television,” NAB said in petition filed Mon. with Copyright Board Canada. NAB said JumpTV’s promises to prevent U.S. consumers from accessing U.S. video from its site couldn’t be proved, and allowing Internet streaming into U.S. would violate international copyright rules.
Rumored sale of GE Americom to SES Astra of Luxembourg was announced Wed. at Grand Hyatt Hotel at Satellite 2001 (CD March 7 p5). Companies said newly formed SES Global acquired total control of GE Americom stock and other assets for $2.7 billion in cash and 15.4 million shares in SES Global. Analysts estimated total value of deal at $5 billion. GE will have 25.1% economic interest and 20.1% voting interest in SES Global. In return, SES Global will acquire SES Astra in 1-to-1 exchange involving cash and stock swap worth $1.4 billion. GE Americom had revenue of $510 million last year. Combined assets of companies will create world’s largest satellite services provider with pro forma revenue of $1.26 billion for 2000, analysts said. It’s 2nd sale in as many days of major U.S. satellite operator as consolidation of industry continues.
Broad group of wireless, GPS, satellite radio and air transport interests urged FCC not to take final action on operation of ultra wideband (UWB) equipment under Part 15 rules without issuing further notice of proposed rulemaking (NPRM). In letter sent late Tues. to Chmn. Powell, 26 companies and trade groups stressed it would be “premature and inappropriate for the Commission to adopt any final rules at this time.” Agency issued NPRM on UWB operations last May (CD May 11 p1), but it didn’t contain specific regulatory language, group said. Since then, FCC has received large volume of test results on potential interference of UWB operations in both GPS and non-GPS bands. “However, the interested parties cannot logically extrapolate from the various test submissions any comprehensive picture of the direction of the Commission’s final thinking with respect to a potential regulatory framework,” group said in letter obtained by Communications Daily. Companies signing letter include AT&T Wireless, Lockheed Martin, Nortel, Qualcomm, Satellite Industry Assn., U.S. GPS Industry Council, WorldCom.
World Access has retained UBS Warburg to “explore alternatives” to restructure its debt and identify new sources of capital. Company said if effort isn’t successful it “may find it necessary to seek protection under Chapter 11” of Bankruptcy Code. World Access provides bundled voice, data and Internet services to small and medium-sized business customers in Europe. Company said preliminary 4th-quarter results showed revenue was about 15% below original guidance and losses were “significant.”
Mass Dept. of Telecom & Energy (DTE) opened investigation into Verizon provision of special access for high-speed dedicated digital circuits because of CLEC complaints. DTE said its purpose was to determine whether Verizon special access services were being provided to other carriers in reasonable manner and whether company needed to take steps to improve service. Intervenor deadline is March 29. Preliminary hearing is April 4, followed by procedural conference to set rest of schedule. DTE said that in last several months it had been getting complaints from CLECs that Verizon quoted “extremely long” provisioning intervals, failed to meet those extended intervals, failed to keep carriers updated on order progress and had problems maintaining existing circuits. DTE said special access complaints surfaced during Verizon Sec. 271 review even though special access wasn’t 271 checklist item, and said informal efforts to resolve problems hadn’t worked.
Following recommendation by FBI’s Communications Assistance for Law Enforcement Act (CALEA) implementation section, FCC said Thurs. it was extending preliminary determination period for wireless carriers seeking extensions of deadline for complying with CALEA Sec. 103 to Sept. 30 from March 31. FCC said complexity of hardware and software that wireless carriers needed to comply with CALEA made it impossible for them to project accurately when they would be compliant. FCC said 7 wireless carriers that had filed extension petitions or supplements since June 30 had met requirements for preliminary determination that they warranted extension until Sept. 30. They are Americell, Concho Cellular, Glenn Ishihara, Guam Telephone, Nextel Partners, Pine Belt Cellular, Tex. RSA. Two others -- Copper Valley Telephone and Nev. Wireless -- didn’t satisfy requirements but can supplement their petitions, FCC said.