RCN Corp. insiders bought 1.538 million shares on open market Dec. 22-28. Purchases were made independent of any company- sponsored plan, company said. Board member Walter Scott bought one million shares, Chmn.-CEO David McCourt 500,000, other board members and officers 38,000.
Bills introduced in Neb. and Wyo. would make wireless carriers eligible for state universal service support. Neb. bill (LB-389) would give Neb. PSC limited jurisdiction over wireless phone carriers for universal service purposes. It would authorize PSC to require that wireless carriers contribute to state universal service fund and adopt rules under which wireless carriers could receive subsidies from state fund for local service to high-cost areas. Wyo. measure (HB-52) would make flat-rate wireless local service eligible for state universal service support. Bill would authorize Wyo. PSC to determine amount of money available for wireless universal service subsidies and adopt disbursement rules for payments to wireless carriers. Present law in both states denies commissions any authority over wireless services. Another new Neb. bill relating to universal service (LB-89) would annually earmark 1% of money in state universal service fund to subsidize broadband telecom services for county and municipal govt. agencies, starting in 2002.
Interim committee of W.Va. legislature, studying ways to regulate telemarketers, filed report that recommended no legislation for 2001 session. Group had considered restrictive measures such as state “no-call” list, but concluded existing laws were sufficient to address any telemarketing problems. Several state legislators said they planned to disregard panel’s report and would be introducing telemarketing bills this session.
U.S. Appeals Court, D.C., handed important victory to Assn. of Communications Enterprises (ASCENT) late Tues., vacating FCC order on one of conditions imposed on SBC-Ameritech merger in 1999. Court vacated order that covered tradeoff FCC made with SBC in which company was permitted to provide advanced services free of interconnection requirements if it created separate affiliate to provide those services. Decision focused on arguments by challenger ASCENT that FCC essentially was forbearing from regulating when it decided to bypass interconnection requirements of Telecom Act’s Sec. 251 because SBC would be providing advanced, not basic, service through separate subsidiary.
Federation of Internet Solution Providers of the Americas (FISPA) urged FCC to extend today’s (Wed.) deadline for submitting reply comments on Commission’s cable open access inquiry. FISPA, which mostly represents smaller ISPs in Fla. and other states, asked agency to push deadline back 30 days to Feb. 9 to allow its members and other parties more time “to analyze the initial comments, evaluate the important legal, policy and operational issues regarding high-speed Internet access and prepare reply comments which will aid the Commission in its consideration of the questions raised in the notice of inquiry.” In 3-page filing with FCC last Fri., FISPA also argued that “the significance of these questions, their complexity and the large number of thoughtful and insightful comments filed in the initial round” weigh in favor of “a modest extension of time.”
FCC is holding first meeting of World Radio Conference (WRC) Advisory Committee Jan. 30, 10 a.m.-noon in Commission meeting room. International Bureau’s Planning & Negotiations Div. will take lead on FCC’s WRC efforts, with Julie Garcia directing preparations and serving as designated federal official to advisory panel. Brian Fontes, Cingular Wireless vp-federal regulation, and Jennifer Warren, Lockheed Martin senior dir.- telecom trade and regulatory affairs, are chmn. and vice-chmn. of committee. FCC said particular emphasis at next WRC in June 2003 will be on International Mobile Telecommunications-2000, terrestrial wireless interactive multimedia services, sharing in 40 GHz with aeronautical mobile-satellite services. FCC also expects focus on public protection and disaster relief, broadcasting-satellite interregional sharing, amateur and amateur satellite services, high frequency broadcasting, regulatory procedures for satellite networks. “Our priority during this WRC cycle is to successfully complete the domestic preparatory process in a time frame that allows the U.S. to be a leader at regional and international meetings,” International Bureau Chief Donald Abelson said. FCC also has created new Web site: http://fcc.gov/wrc-03.
Motorola will provide 3rd-generation wireless network upgrades for Sprint PCS under infrastructure agreement, terms not disclosed. Motorola said it would provide CDMA equipment with interoperability specifications and cdma2000 1x high-speed packet data “in a significant portion” of Sprint wireless markets. It said upgrade orders cover Sprint operations in Charlotte, Chattanooga, Chicago, Cincinnati, Cleveland, Columbus, O., Greensboro, N.C., Honolulu, Knoxville, Norfolk, Raleigh, Richmond. Separately, Motorola said it completed 3G calls in Sprint PCS lab in Kansas City as part of tests before commercial deployment of next-generation wireless systems. Most recent trial involved Motorola’s 4-carrier base station that uses interoperability standard to connect to packet data serving node.
AT&T shares closed at $22.50, up 12.15% after news that it’s stock was upgraded to strong buy by Morgan Stanley from neutral in report issued Tues. Morgan Stanley, saying it saw better times ahead for AT&T, established 12-month target price of $35 for company, saying stock now was worth $35-$40 per share after falling 66% in 2000, with AT&T Wireless continuing to show strong growth. AT&T cable prospects also were seen as positive. Morgan Stanley remained cautious on long distance business, figuring valuation at zero at current stock price despite generating estimated $15 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) this year, citing company’s debt load of $60 billion. Brokerage said break-up of company would act as performance catalyst over next several months. It also said plan to distribute rest of AT&T Wireless to shareholders plus aggressive asset disposal program should prove beneficial. While acknowledging AT&T’s “challenging” credit position, Morgan Stanley identified its steps to improve situation such as raising nearly $10 billion from NTT DoCoMo, completing $25 billion debt facility, cutting dividend 83%. It said outlook for 4th quarter foresaw AT&T Wireless “looking good,” adding 850,000 subscribers and generating $2.596 billion in revenue, up 38.2% from a year ago. Beyond 4th quarter, broadband IPO outlook still was seen as problem, with regulatory hurdles to overcome and improvement needed in operating and financial metrics. Cable revenue was expected to grow 9-9.5% on pro forma basis in quarter and 10.5-11% in year, including Comcast swap. By end of year, Morgan Stanley said it expected AT&T Broadband digital penetration of 18.5%, largest digital footprint in U.S., with 1.15 million high-speed data subscribers, 550,000-570,000 residential telephony customers and almost 10% penetration, with revenue of $70 million anticipated. AT&T Broadband capital expenditure this year is expected to be robust. AT&T is to release 4th quarter earnings in week of Jan. 29.
NAB said 6 more TV stations have begun broadcasting digital signals, raising industry DTV total to 172 stations in 60 markets. List of new DTV stations includes: (1) WALA-DT, Mobile, Ala., Fox affiliate owned by Emmis Communications. (2) KTXA-DT, Dallas, UPN affiliate owned by Viacom. (3) WVIA-DT, Scranton, Pa., PBS station licensed to Northeastern Pa. Educational TV Assn. (4) KXAN-DT, Austin, NBC affiliate owned by Lin TV. (5) WNBC-DT, N.Y.C., NBC owned station. (6) KDNL-DT, St. Louis, ABC affiliate owned by Sinclair Bcst. Group.
LAS VEGAS -- Broadcasters offering data services are “very comfortable” that they can have good data business without running afoul of congressional pressure for HDTV, Matt Jacobson, exec. vp of iBlast, told CES convention here. Geocast Vp John Abel went further, saying hearing by House Telecom Subcommittee Chmn. Tauzin (R-La.) to pressure broadcasters on HDTV was “baloney.” Abel, former NAB exec. vp responsible for HDTV, also said still- undisclosed DTV test results “tilt in favor of staying the course” for using VSB-based standard.