GiantLoop Network and 360networks announced alliance in which latter will be GiantLoop’s preferred provider of N. American and transatlantic broadband services. In addition, 360 networks made “very minor” equity investment in GiantLoop, Waltham, Mass.-based fiber network.
Rural Task Force (RTF) asked FCC to act within 45 days on task force proposal for rural universal service revisions. In Jan. 3 ex parte letter, RTF said Federal-State Joint Board on Universal Service already had developed “extensive record” of comments on recommendation, so swift action was plausible: “Because the recommendation now in front of the FCC is unchanged from that put out for comment by the Joint Board, it is highly unlikely that an additional round of comments from the FCC is required.” If FCC decides to seek more comments, it ought to complete comment process in 30 days, RTF said. RTF Chmn. William Gillis said group realizes Commission had many demands but “each additional day of delay in implementing universal service reform for rural carriers puts at risk much-needed investment in rural America.”
Qwest proposed settlement of pending Ariz. class action lawsuit filed against its predecessor, U S West, that would give credits ranging from $15 to almost $1,500 to estimated 300,000 customers who have suffered phone installation delays in last 8 years. Qwest filed $22 million settlement offer Wed. in Maricopa County Court, offering to compensate customers who suffered service installation delays between Jan. 1, 1993, and Nov. 20, 2000. Court hearing on settlement offer will be April 23. Current Qwest customers would get automatic bill credit while former customers would receive checks. Residential refund would range from $15 for 4-day delay to $880 if delay exceeded 5 months. Business refund would range from $59 to $1,465 per line. Credits for delay on additional residential lines would be $3. Qwest wouldn’t have to admit wrongdoing. Ariz. suit is outgrowth of original suit filed in 1997 in Denver alleging U S West had diverted resources from local service to fund new wireless and cable ventures, contrary to customer interests. Qwest last year settled Colo. suit for $36 million in refunds to 244,000 customers and similar N.M. suit for $6 million to 70,000 customers.
Verizon Wireless said it added 1.2 million customers in quarter ended Dec. 31, increasing its year-end total to 27.5 million, with 16% subscriber growth rate -- 3.7 million new customers -- compared with 1999. Verizon Wireless said growth had been fueled in part by surge in contract customers, which represented more than 99% of new subscribers in 4th quarter, compared with 60% year earlier. Customer turnover in quarter remained unchanged from year ago at 2.6%. Carrier also said more than half of its customers now use digital service and more than 750,000 are using its wireless data offerings.
Entravision Communications said it closed on purchase of 2 New England TV stations: WUNI (Ch. 27, Univision) Worcester, Mass., from Jasas Corp. for $47.5 million and WHCT-TV (Ch. 18, Valuevision) Hartford from Astroline Communications for $18 million. WHCT-TV call letters will be changed to WUVN-TV and it will affiliate with Univision, Entravision said, giving group owner 18 Univision affiliated TV stations. WUNI Gen. Mgr. Gary Marder also was named to same post at WUVN-TV. In separate deal, Hubbard Bcstg. said it closed on $9.5 million purchase of KAAL (Ch.6, ABC) Austin, Minn., from Gocom Holdings.
House Republicans surprised few with their choices for new committee heads late Thurs. Choices still had to be ratified by rank-and-file at our deadline. As expected, Telecom Subcommittee Chmn. Tauzin (R-La.) was promoted to Commerce Committee chmn., and Subcommittee Vice Chmn. Oxley (R-O.) was given expanded Banking Committee, apparently clearing way for Rep. Stearns (R-Fla.) to take over Subcommittee. Rep. Sensenbrenner (R-Wis.) won Judiciary Committee, as expected, while Rep. Thomas (R-Cal.) gained Ways & Means.
Coalition of major broadcasters, cable networks, movie studios, record companies, sports leagues and other content owners lobbied FCC for strong copy protection technology for advanced digital cable set-top boxes. In joint 4-page letter to FCC Chmn. Kennard Thurs., ABC, BMI, CBS, ESPN, Fox, Minor League Baseball, MPAA, NBC and RIAA argued that “cable interface devices must include the capability to protect certain high-value content against unauthorized copy and Internet retransmission” because of “the economics of producing and distributing high-value programming.” Responding to letter by House Telecom Subcommittee member Boucher (D-Va.) to Kennard last month, group also contended that advanced digital set-tops must be capable of providing some level of content protection “so consumers that purchase such devices will be able to receive the widest variety of program choices, including high-value programs that may be made available only if content protections are in place.” It said “alternative is to introduce devices in the marketplace that cannot provide content protection, and therefore cannot receive certain types of high-value programming.” Content owners also disputed Boucher’s contention that “freely broadcast programming should remain freely copyable,” contending that local broadcasters would be relegated to “the position of ‘low-value’ content distributors.” They questioned whether there was any public interest “in allowing consumers to make multiple copies of broadcast programming, or to retransmit broadcast programs over the Internet.”
Qualcomm signed royalty-bearing CDMA infrastructure equipment license agreement with GBase Communications, terms not disclosed. Agreement licenses certain Qualcomm patents and agreements to GBase to develop and manufacture wireless infrastructure equipment for in-building or campus network applications. Pact covers cdmaOne, cdma2000, cdma2000 1xEV.
Commerce Secy.-nominee Donald Evans was cautious on Internet and telecom issues in his appearance before Senate Commerce Committee Thurs., assuring panel members that he would give attention to their pet issues but making no specific commitments. Evans has been busy wandering halls of Senate since his nomination, having visited virtually all Committee members before hearing. He appeared to have little to no opposition, and several lawmakers said they expected to see him confirmed quickly following President Bush’s inauguration. Among topics raised by Senators: (1) NTIA’s Technology Opportunity Program (TOP), lauded by several members for providing technology funds to underserved regions. “I know how important the issue is,” said Evans of digital divide: “I will give it my attention.” He said he would try to convince business leaders to increase private efforts. (2) Wireless spectrum, which several senators said was major topic in their private meetings with Evans. Sen. Rockefeller (D-W.Va.) said country needed “spectrum management strategy… We go from crisis to crisis.” Evans acknowledged that he had just learned about 3rd-generation wireless technology “in the last 48 hours or so,” but said it might help solve digital divide. He agreed that govt. needed long-term strategy for managing and auctioning spectrum. (3) Bureau of Export Administration’s Critical Infrastructure Assurance Office, which Rockefeller said was “underfunded, understaffed.” (4) Internet taxation quandary, which Evans said was “going to be on all of our minds as we approach” Oct. end of current e-commerce taxation moratorium. However, he said, Bush Administration was “sensitive to what it might mean to the tax base of… the cities and the counties and the states. And so those factors need to be considered.” Evans said “important thing is to get all the right constituents to the table to talk” and “this is not something that we should wait until October or September or whenever to talk about it.” (5) Privacy. Asked by Sen. Wyden (D-Ore.) what his “general approach” would be on topic, Evans said only that he would work with ranking Democrat Hollings (S.C.) and Chmn. McCain (R-Ariz.) and others interested in issue. But he said “we shouldn’t continue to procrastinate.”
Strategis Group report issued Thurs. cited “commercial uncertainties” that remain on 40-43.5 GHz band that European regulators were considering licensing for fixed wireless services. Study said band could allow new market entrants to gain foothold against dominant competitors. European Radiocommunications Committee has designated band for broadband, multimedia wireless systems, Strategis Group said. Among potential challenges for that spectrum is that adequate hardware may not be available for commercial operations, said Diane de Polignac, Strategis Group Europe consultant.