PanAmSat asked FCC to defer deadline for filing comments on supplemental information provided by Intelsat in application to construct, launch and operate C-band and Ku-band satellites. PanAmSat wants comment period delayed until Commission has: (1) Acted upon Intelsat request, which PanAmSat opposes, for confidential treatment of documents filed along with supplemental information. (2) Determined whether Intelsat should be required to furnish additional relevant and material information.
Motorola plans to stop cellphone manufacturing operations at its Harvard, Ill., plant, resulting in loss of 2,500 jobs from company’s total work force of 130,000. Motorola, which issued series of earnings warnings late last year, said move was part of its strategy to consolidate manufacturing and bolster financial performance. Harvard campus, which will continue to have 2,500 employees, will focus on order fulfillment and new product sourcing. “We cannot competitively manufacture products when there is surplus global capacity at Motorola’s lower cost sites,” Motorola PCS Pres. Mike Zafirovski said. Company said it planned to halt manufacturing at Ill. site by June 30.
FCC proposed $327,000 in fines against American Tower Corp. (ATC), AT&T Wireless, SpectraSite and Telecorp Communications Tues. for violations of agency’s antenna structure rules. Commission ordered Enforcement Bureau to conduct “additional, more thorough investigation” of ATC compliance with rules. Largest, single proposed fine is against ATC for failing to properly light one antenna during construction, not registering 2 existing structures, failing to notify FCC of ownership changes on 24, not posting registration number on 9 other towers. To ensure air safety, tower owners must meet requirements on lighting, proximity of antenna structures to airports and monitoring to ensure lighting systems work properly. Commission called ATC’s violations of rules, which are designed in conjunction with FAA to ensure towers don’t pose hazards to aircraft, “serious.” FCC actions resulted from “routine investigations and inspections” by field offices of Enforcement Bureau, agency said. Enforcement Bureau also proposed $80,000 in fines to Telecorp, $18,000 for AT&T Wireless and $17,000 for SpectraSite for similar violations of antenna structure rules. Fines against those companies involved failure to light towers properly, failure to post registration numbers and failure to provide updates on ownership changes. As for ATC, FCC said its field agents “repeatedly notified” company about noncompliance. “The Commission expressed concern that in spite of notifications to ATC regarding its noncompliance and statements by ATC representatives that they would address the issue, Enforcement Bureau field agents continue to find violations of the antenna structure rules,” FCC said. In notice of apparent liability for forfeiture for ATC, Commission said most incidents involving failure to notify agency of ownership changes occurred after field representatives met with company officials. “Moreover, the fact that these violations occurred in various states across the country suggests that ATC has not engaged in a ’sweep’ of its antenna structures as its representatives stated that it would,” notice said. FCC said broader investigation of ATC was prompted by continued findings by field representatives of additional rule violations during routine inspections.
Lockheed Martin Global Telecommunications (LMGT) introduced LinkStar broadband satellite networking service Tues. LinkStar is scalable IP terminal that provides broadband satellite forward and return channels. Product allows Global Service Providers and ISPs to offer broadband Internet access by leveraging advantages of satellite networks, company said. LMGT will begin selling LinkStar terminals immediately, with product delivery expected in 3rd quarter.
Financial problems of Globalstar accelerated Tues. with its announcement that it had “indefinitely suspended” principal and interest payments on all of its debt to give it enough cash to fund its operations into 2002. Globalstar, whose “shaky position” in industry may have been hurt by re-entry of Iridium into market, according to analysts, said it would save $400 million cash this year by withholding payments on its bank, debt, senior notes, vendor financing agreements and dividend payments on its preferred stock. Analyst suggested move “pushed the company one step closer to bankruptcy.” Decision will enable Globalstar to preserve “sufficient cash” to fund operations into next year. Earlier, it had said it had enough money to last until 4th quarter 2001. Company said move would give its partners additional time to implement new marketing strategy. Some analysts have predicted Globalstar would end up in bankruptcy within 6 months.
Ill. Commerce Commission last week ordered Ameritech to pay $30 million penalty for its failure to meet state’s outage restoration target in 2000. Ill. Commerce Commission Chmn. Richard Mathias said company’s promises in fall had led agency to expect Ameritech would be in compliance with service outage standard for month of Dec., “but they weren’t.” Ameritech said heavy snows in Dec. caused company to end month with 93% instead of 95% completions of problems.
FCC’s C- and F-block auction hit $16.07 billion Tues., with Verizon Wireless now accounting for more than half of bids with $8.38 billion. Aggressive bidding for N.Y.C. spectrum flirted with $2 billion mark, with Verizon submitting separate bids of $1.8 billion for 2 licenses there and Cingular Wireless-backed Salmon PCS $1.2 billion for 3rd. Salmon PCS, in which Cingular has 85%, noncontrolling stake, bid $3.1 billion, followed by AT&T Wireless-backed Alaska Native Wireless with $1.3 billion, DCC PCS with $960.8 million and VoiceStream with $960.8 million. Bidding for 422 PCS licenses began Dec. 12 and completed 55th round Tues. Bidding for N.Y.C. licenses so far has outstripped that for next largest wireless market of L.A., where Verizon and DCC PCS have bid closer to $515 million.
Verizon is installing more than 3,600 telecom circuits to help news media and govt. agencies handle Jan. 20 Inauguration in Washington. Facilities will range from standard voice lines to special video circuits for TV networks, company said. Verizon said it had received orders for more than 2,000 voice lines, 200 special video circuits, 12 audio circuits, 25 high-speed DS-1 data lines, more than 1,400 ISDN lines. Orders have come from domestic and international broadcasters, print media outlets, numerous govt. agencies including Secret Service. Fiber lines are being installed on Capitol grounds and Mall, including fiber circuit strung from bottom to top of Washington Monument for use by several broadcast outlets. Company installed temporary payphones at Lincoln Memorial for media. Verizon said that, like other participants, company was strapped for time because it couldn’t start taking orders and installing circuits until winner of election had been decided.
Regina Keeney, ex-chief policy counsel for Dell Computer and former chief of 3 FCC bureaus, moves to Lawler, Metzger & Milkman as partner… Jessica Wallace, legislative asst. to Rep. Tauzin (R-La.), is latest staffer to follow him to House Commerce Committee, where she will be telecom counsel… William Moll, ex-pres.-gen. mgr., WKRC-TV Cincinnati, appointed pres., Clear Channel TV, succeeding Ripperton Riordan, who plans to go into ministry… Ann Marie Cumming, NAB dir.- media relations, resigns to move to Germany with her husband, CIA official… Ann McGowan promoted to dir.-business development, Showtime Networks… Michael Norten, ex-WPGH-TV and WCWB Pittsburgh, appointed vp-sales and news, Video Networks… John deGarmo, ex-Scripps Networks, named senior vp-affiliate relations, Moviewatch… Stephen Castro, ex- NetStream, appointed regional sales dir.-San Francisco, NTT America… Glenda Davis, ex-Fujitsu Business Communications Systems, named pres.- CEO, MCK Communications… Bob Johnson promoted to vp-northeast, Nextel Communications.
Mich. PSC said it received more than 100 complaints from Ameritech customers alleging company was reneging on Dec. 20 deal to compensate those who suffered long service outages last year. Under $14 million settlement with PSC, Ameritech was supposed to compensate customers for each outage day they suffered, meaning some could get credits worth hundreds of dollars. Customers complained they were told by Ameritech service representatives that all they were entitled to was credit for one month’s local dial-tone charge, around $14. Ameritech said it had been explaining settlement to employees but apparently some hadn’t yet gotten word. Ameritech said customers would receive full credits they were entitled to under agreement.