Michael Brouder, ex-WBZL Miami, appointed dir.-creative services, WGN Cable, Chicago… Ronald Walter promoted to vp-govt. & cable relations, N. Y. Times Bcst. Group… Kathy Payne promoted to dir. of programming, Cox Communications… Bob Walker, ex-KQMB Salt Lake City, becomes program director, WKTI Milwaukee… Dave Wampler promoted to dir. of finance-central and eastern regions, CableRep Advertising… Philip Bouchard, ex-ThinkLink, appointed CFO-COO, Chapter 2… Bob Collet, ex-Teleglobe, named pres., Velocita… Jack Reily, ex-Broadview, appointed exec. vp-corporate development, Efficient Networks… Mona Klausing, ex-Novatel, named dir.-product mktg., Invertix… Craig Young, AT&T Canada vice chmn. and dir., joins board of Global Metro Networks… Joseph Armstrong, ex-State Of The Art Inc., appointed CFO, Sorrento Networks… Davis Masten, co-founder, Cheskin Research, elected to Truste board… Minoru Nakamura, ex-NTT PC Communications, appointed pres., AOL Japan… Alan Amico promoted to CPO, PeopleFirst.com… Marc Randall advanced to vp- engineering, Force10 Networks… Lance Simmens, ex-Small Business Administration, appointed dir.-govt. relations, Screen Actors Guild… Promoted at 20th Century Fox: Ted Gagliano to pres.- postproduction, Joe Hartwick to pres.-physical production… Travis Rutherford, ex-Dreamworks and Disney, appointed senior vp, MGM Consumer Products and Interactive Divs.
AT&T and Insight Communications said they closed on their previously announced deal to add 530,000 cable subscribers to their Insight Midwest joint venture managed by Insight. Under agreement, AT&T is contributing systems in Ill. with 250,000 subscribers, while Insight is adding systems in Ga., Ill., Ind. and Ohio with 280,000 customers. Deal expands Insight Midwest’s total reach to 1.4 million cable subscribers, almost entirely in Ill., Ind., Ohio and Ky. In conjunction with transaction, Insight said it closed on new $1.75 billion credit facility to finance expanded venture.
To no one’s great surprise, cable TV remains dominant technology for delivering video programming to consumers, according to 7th annual video competition report adopted last week and released by FCC Mon. Commission found that cable industry totaled 67.7 million subscribers in June 2000, up one million (1.5%) from 66.7 million in June 1999. But DBS continued to make steady inroads in cable’s market share, adding almost 3 million subscribers over same period to reach nearly 13 million last June, up 29% from year earlier. Largely as result, cable operators now control 80% of burgeoning pay-TV market, down from 82% year earlier, while DBS providers now command growing 15.4%.
XM Satellite Radio expected to launch first of 2 Boeing 702 model satellites after our deadline Jan. 8 with window for XM-1 satellite called Roll opening at 5:35 p.m. ET. from sea site 3,000 miles west of Long Beach, Cal.
Officials of Simi Valley, Cal., are urging cable subscribers to protest increase in fees, announced by former owner Comcast day before Adelphia Communications took over ownership of Ventura County cable system Jan. 2. City officials accused Adelphia of orchestrating increase, which takes effect Feb. 1, that raised monthly cost of 51-channel basic package to $39.26 from $37.10. Adelphia, which didn’t mention planned increase before taking over, said it was justified because of system upgrade, including 10 new channels and establishment of local customer service center. In Dec., city had increased franchise fee to 5% of gross revenues from 3%.
AT&T Broadband executed across-board trimming of its Atlanta- area work force, laying off 309 employees last week in what spokesman said was cost-saving and realignment operation. Cuts involved employees in call center, field operations, marketing, finance, human resources and midlevel management, he said. Action follows 6-month “top-to-bottom” review of entire Atlanta operations, spokesman said, and jobs were seen as not “mission critical” to improve customer service, efficiency, competitiveness. He said 40-50 of jobs involved inbound sales calls that were outsourced to company in Tex. “It is strictly an Atlanta initiative,” spokesman said when asked whether company was planning job cuts in other areas.
Metromedia Fiber Network obtained $350 million credit facility from Citicorp USA and said it expected strong growth year. Company plans deployment of 3.6 million fiber miles by end of 2004. It said estimated revenue for 2000 was $184.6 million, up $69.7 million from 1999.
Sweden’s Telia, which is battling govt. decision not to award it 3rd-generation wireless license, unveiled plan Mon. to create 50-50 joint venture with Tele2, subsidiary of NetCom. Tele2 received one of four 3G license from Sweden’s National Post & Telecommunications Agency (PTS). It said venture will build next- generation mobile network. Agreement gives Telia “equal access” to 3G license that Tele2 has received. “The risk related to the UMTS (Universal Mobile Telecommunications System) investment is radically reduced through this joint venture,” NetCom CEO Lars- Johan Jarnheimer said. Companies said they were considering similar venture in Norway. Agreement with Tele2 will remain valid regardless of outcome of Telia’s appeal with PTS, companies said. Telia is asking country’s courts to suspend PTS decision, citing what it charged were problems in process of awarding spectrum (CD Jan 8 p6).
France Telecom plans to float up to 15% of shares of Orange PLC, its subsidiary European wireless carrier, in London and Paris. Share price will value Orange at 70-80 billion euros. Further 5% will be available to investors in convertible bonds, exchangeable for Orange shares at up to 1/3 above price. Prospectus will be published at end of Jan. Flotation comes after mobile phone sector racked up debt in recent 3G license auctions.
Ind. Utility Regulatory Commission (IURC) will hold hearing Jan. 16 on Ameritech’s proposed $1 million settlement for continuation of price cap regulation. Under agreement with Office of Utility Consumer Counsel, Ind. Intelenet Commission and AT&T, Ameritech would invest $832 million in next several years to improve its infrastructure, including replacement of all analog electronic network switches with digital, and upgrading substantial portion of central offices to provide high-speed Internet access. Agreement also would require Ameritech next fall to cut residential rates $62 million and business rates $106 million. Separately, bill introduced in Ind. Senate would give IURC legal jurisdiction over mergers of parent holding companies that own telephone, energy and other utilities operating in state. Legislation by state Sen. Timothy Lanane (D-Indianapolis) addresses 1999 Ind. Supreme Court ruling that IURC lacked legal authority over SBC-Ameritech and Bell Atlantic-GTE mergers.