VoiceStream and Deutsche Telekom (DT), in brief filing Wed. with SEC, disclosed they had entered into agreement with U.S. Dept. of Justice and FBI on issues related to proposed mergers of VoiceStream, DT, Powertel. Pact addresses national security and law enforcement matters in proposed deal, companies said, but didn’t outline details. They said they and federal law enforcers jointly had petitioned FCC to defer granting applications for merger approval until after agreement was reached with DoJ and FBI. Merger still must be approved by Commission, Committee on Foreign Investment in U.S., VoiceStream and Powertel shareholders.
WorldGate Communications and Commerce.TV said they formed partnership to integrate latter’s data processing network with former’s interactive TV service. Companies said agreement would make Commerce.TV’s electronic shopping service available to all WorldGate subscribers through digital cable set-top boxes.
Public broadcasters’ DTV transition will run $779 million shortfall with no funding increases from federal govt., White House said in final Economic Outlook report. PTV made list of “pending policy proposals” -- Clinton Administration budget items that were cut severely by Congress -- after receiving only $44 million of requested $110 million for FY 2001. White House also said FCC’s spectrum auction authority had reaped $20 billion since 1994, and failure to renew it past 2008 would cost federal govt. $500 million annually.
STM Wireless and Alcatel said Wed. they signed OEM partnership agreement under which Alcatel will integrate STM’s VSAT products into its range of carrier grade systems and software in order to offer satellite broadband solutions to service providers using current satellites and emerging Ka-band systems.
PanAmSat Net36 and Hughes Network Systems (HNS) said Net36 would provide additional streaming content delivery for DirecPC services. With addition of new service, Net36 now has access to half of N. American broadband households via satellite-to-edge servers. Meanwhile, HNS said it was expanding its relationship with Telkom SA Ltd. of S. Africa. HNS will supply Telkom SA with 14,000 very small aperture terminals (VSATs) that will meet 90% of nation’s VSAT needs. HNS technology will support delivery of Telkom SA’s VSAT service to provide advanced communications systems for election monitoring, air traffic control, rapid financial transactions, multimedia, other services. No terms were disclosed.
Universal Space Network and BAE Systems opened Western Australia remote ground station at Yathanrragga to support former’s subscriber base, which includes NASA’s Triana spacecraft mission. Station will be constructed and maintained by BAE Systems.
NBC revenue fell 11% to $1.55 billion in 4th quarter ended Dec. 31, but operating profit was up 10% to $476 million, parent GE reported. GE gave little explanation of changes, although it cited higher ratings for broadcast network, “tremendous ratings” for MSNBC during election period and 40% full-year profit growth for CNBC. For full year, NBC revenue was up 17% to $6.8 billion and operating profit up 14% to $1.7 billion.
Time Warner Cable and Intellicast.com said they teamed up to start Broadband Weather, new online weather information service delivered over high-speed cable lines, in MSO’s Portland, Me., system. New on-demand, 24-hour service features hourly local weather forecasts, national forecasts, video segments, local radar, storm watches and warnings, severe storm tracking. Time Warner said it would offer broadband service to its Road Runner subscribers in Portland area first and then extend it to several other regions.
DirecTV is facing another class action lawsuit for alleged monopolistic practices that resulted in increase in price subscribers must pay for its products and services. Suit filed last Sept. in U.S. Dist. Court, L.A., alleged that DirecTV engaged in activities intended to stifle competition in violation of various federal and state antitrust laws. Suit said all DirecTV subscribers from March 1996 to Sept. 2000 had been damaged by DirecTV conduct and were entitled to damages. Best Buy, Circuit City, RadioShack and Thomson Consumer Electronics also were named in suit. Sears Roebuck also sued DirecTV claiming, among other things, that latter had canceled its contract after Sears didn’t stop selling EchoStar products and services.
NAB, which hasn’t presented its “Spirit Of Broadcasting Award” since 1995, will present 2 at April convention in Las Vegas. One will go to Margita White, retiring pres. of Maximum Service TV and former FCC commissioner, 2nd to American Women in Radio & TV. Previous winners include ex-President Ronald Reagan and former FCC Comr. James Quello.