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.
AFL-CIO criticized AT&T Thurs. for trying “to deprive shareholders of meaningful oversight of AT&T management’s controversial breakup plan.” Union disapproved of company’s filing preliminary proxy statement with SEC Wed. in which it proposed to amend its charter to reduce approval threshold for mergers and asset disposition to simple majority from current 2/3 majority of outstanding shares. “AT&T is essentially asking shareholders to relinquish an important right before they have enough information to decide if they want to exercise that right,” said Richard Trumka, AFL-CIO secy.-treas. Union’s concern is effect charter change would have on AT&T’s plan to break up into 3 separate companies and 4 publicly listed securities. AFL-CIO has expressed concern about breakup.
CWA called for full FCC audit of AT&T Broadband’s cable franchises for alleged violations of agency’s public disclosure rules. Union said it found in preliminary survey of dozen AT&T franchise locations that company management had refused public access to records; didn’t make files available to public; maintained incomplete and outdated information. CWA told FCC that “especially troubling is the failure of AT&T franchises to maintain complete signal leakage logs and proof-of-performance records” that would demonstrate compliance with Commission’s technical standards for cable operators. Audit is needed to ensure compliance with those rules and technical standards, it said. Union said Commission also should levy financial penalty “commensurate with the record of violation of these rules.”
FTC entered final settlement with bankruptcy trustee for International Telemedia Assoc. (ITA) that resolved cramming suit against ITA. Settlement gives FTC allowed claim of $3.5 million in ITA’s bankruptcy case. Commission said it already had received $700,000 from ITA’s bankruptcy estate and expected further distribution. FTC filed suit against ITA and Online Consulting Group in July 1998 alleging they were engaged in cramming charges for audiotext services -- telephone-based entertainment programs - - onto consumers’ phone bills. In Sept. 1998 preliminary injunction was issued but both companies already had ceased operations. Settlement resolves outstanding claim for monetary relief against ITA, agency said.
Canadian Radio-TV & Telecom Commission (CRTC) said existing telemarketing rules now would apply to all telecom service providers uniformly across country and called for public input on whether rules should be toughened. CRTC said move addressed “patchwork application of rules across Canada” that differed from region to region and by type of service provider.
Dept. of Defense (DoD) and wireless industry remain apart on some technical issues regarding how bands occupied by military users could be altered for 3rd-generation uses. Govt. and industry officials, at meeting hosted by NTIA Thurs., emphasized that analyses of bands that could be used for additional 3G spectrum were continuing, with final FCC and NTIA reports due late next month. “We still have a lot of work to do,” Motorola’s Steve Sharkey said. “We have at least an idea of where the paths to move forward are.” Meanwhile, Congressional Budget Office (CBO) raised budget projections for proceeds from FCC spectrum auctions through 2007, with rosier outlook attributed to interest in 3G.
GM is denying industry reports that its board gave preliminary approval to bid by News Corp. Chmn. Rupert Murdoch to take control of DirecTV (CD Feb 8 p9). GM spokeswoman said “there’s nothing new to report.” She said board last week held regularly scheduled meeting and was updated on talks with “parties interested” in buying DirecTV, but took no action.
Dominion Video Satellite received temporary restraining order and preliminary injunction from U.S. Dist. Court, Denver, that requires EchoStar to work with Christian DBS provider on contract dispute. Dominion’s Sky Angel network uses EchoStar satellite service at 61.5 degrees W, where it shares spectrum. Dominion said its customers started complaining in Feb. that EchoStar wasn’t activating new customers or reactivating older receivers. Complaints began about time EchoStar sent letter asking Dominion to buy additional programming, pay higher price for receivers than EchoStar charges its customers, pay additional fees for services, Dominion said. EchoStar asked Dominion for $7 million to offset costs. Both sides have agreed on arbitration to work out differences. Until then, they must abide by old contract, court said. Dominion has 100,000 subscribers that receive 35 channels of religious and educational programming. Separately, EchoStar said patent infringement lawsuit involving identification functionality in satellite TV receivers had been filed against it by Peter James and Saskatchewan govt. EchoStar offers caller ID functions for selected DISH network satellite receivers.