Cyclone-3 rocket carrying 6 Russian communications satellites failed after launch Thurs., resulting in loss of all 6 spacecraft. Spokesman for Strategic Missile Forces said first and 2nd stages of rocket functioned normally, but 3rd failed. Launch failure from Plesetsk cosmodrome in Russian Arctic is 2nd in 2 months for agency, as EarthWatch lost satellite in Nov. 21 launch on Cosmos-3 from Plesetsk (CD Nov. 24 p4). Satellites burned up after re- entry into atmosphere, scattering debris into Arctic Ocean, but officials said debris caused no damage. Russian Aerospace Agency suspended launches on Cyclone-3 rockets until agency can determine cause of failed launch, agency spokesman said. Similar failure nearly cost agency 6 Strela military satellites 2 years ago, but agency saved them.

Last recession year for TV advertising was 1991, and “it appears the industry is heading that way again in 2001” in terms of national spot, prominent stock analyst predicted last week in face of broad indications of major cutbacks by largest TV advertisers. First quarter of year looks particularly bad for TV stations, he and others predicted. Radio on other hand will show ad growth of 7.5-8% next year, according to Gary Fries, pres. of Radio Ad Bureau. “Radio is 80% a local business with revenue sources that defy national trends,” he said.

Joint venture company has been established in Japan to administer use of Bluetooth logo on compliant products. Toshiba will own 80.5% of as-yet-unnamed company, which will be capitalized at Yen 40 million and will start operations in Feb. Other partners are Taiyo Yuden (with 10% share) and IBM Japan (9.5%). Partners said new company is expected to “make it much quicker and more convenient for Japan-based manufacturers to obtain qualification of Bluetooth-enabled products, and is also expected to contribute to shorter development terms and lower associated costs.”

OPASTCO said in Dec. 28 letter to House and Senate leaders that repealing estate tax is one of its top priorities. It’s “one of the most important actions Congress could take to encourage further economic growth in rural communities,” OPASTCO said. “For small towns, the sale of a family-owned business due to estate tax obligations adversely impacts the entire community,” said assn. which represents rural telcos.

After a year of tough negotiations and numerous retransmission consent extensions, Comcast and Disney announced Fri. agreement in principle on carriage of over-the-air signals of ABC owned stations in MSO’s markets. Spokeswomen for companies declined to divulge terms of agreement, citing confidentiality. Agreement covers Disney products and services including ESPN, ESPN2, ESPN Classic, ESPN News, Disney Channel, Toon Disney, SoapNet and retransmission consent for ABC-owned stations in Philadelphia, N.Y., L.A., Chicago, Flint, Mich., and Toledo, Ohio. Current ESPN and Disney Channel programming agreements were set to expire Dec. 31, 2000. Latest in series of retransmission consent extensions was also due to expire Dec. 31 (CD Dec 7 p9). Characterizing agreement as “important” one, Disney Pres. Robert Iger said it’s “clearly in the best interests of our viewers on all the Comcast systems.”

VSB/COFDM report sent to key broadcasters late Fri. included “some good news and some bad news” for both DTV modulation systems, we're told. Reports, based on field testing completed in mid-Dec., were said to have been adopted unanimously by technical groups, which include VSB critic Sinclair Bcst. “I think it was pretty well balanced,” one official familiar with report said. He discounted claim that report strongly supports VSB (CD Dec 29 p4). Technical groups preparing report have kept tight lid on results, with even steering committee members generally not told in advance, we're told. In letter of appreciation to technical group members, Project Chmn. Gary Chapman of LIN TV and Vice Chmn. Craig Dubow of Gannett said they're “confident that the process was inclusive, fair and scientifically sound,” but they admitted that “even these most comprehensive and authoritative tests cannot fully resolve all issues. Opinions may differ as to the precise implications of the data.” Steering Committee is to meet Jan. 10 to discuss results and submit reports to MSTV board. Then, series of meetings will lead up to joint session of NAB and MSTV boards Jan. 15 in Carlsbad, Cal. Broadcasters spent $2.1 million on testing of competing DTV modulation schemes, following what they acknowledged to be “stalemate” as result of dispute over benefits of each system. TV group CEO told us “the direction we take will be charted” at industry summit of station executives in Washington Jan. 11. But, he said, unless study shows COFDM with “an overwhelming preference” industry should proceed with VSB. Then, he said, “we will need to press the FCC very, very hard” for such things as digital must carry and TV networks for more digital programming.

Fla. PSC approved BellSouth plan to refund $48 million to residential and business customers. Refund is final step for BellSouth to complete $209 million refund required under 1994 rate settlement with PSC and Fla. Office of Public Counsel. Refunds will be paid out as bill credits of $3.50-$5 per residential line and $10-$15 per residential line, and are to be completed by Feb. Meanwhile, PSC ordered prepaid calling card provider RJM Card Services to show cause within 21 days why it shouldn’t be fined $22,000 or have its operating authority cancelled for PSC rule violations. Company is accused of failing to list all surcharges and fees on its prepaid cards and of ignoring PSC staff inquiries regarding complaints against company.

Ga. PSC said number of residential customers on state “No Call” telemarketing list topped 200,000 in Dec. Customers must pay $5 every 2 years to keep their name on list, which began taking names in Jan. 1999. Current total is 204,032 names. Telemarketers who call names on list can face fine of up to $2,000 per call. PSC said over 1,600 telemarketers from U.S., Canada and Carribean have accessed no-call database since its inception.

Motorola said Fri. it will unveil its iRadio satellite car radio system at Consumer Electronics Show at Las Vegas Convention Center this week. New car radio system is one of many digital radios that companies are planning to compete with XM and Sirius Satellite Radio for customers, industry officials said. IRadio, developed by Motorola Telematics Unit is expected to offer satellite services and interact with Internet through digital cellular networks which are primarily used for voice calls. Company is hoping to integrate iRadio with satellite navigation systems and emergency service products that are standard in many cars and trucks. CES is being used to showcase prototype with hopes of attracting manufacturer of car audio products, firm said. Motorola believes “right company” could have products ready for introduction to marketplace in one year, spokesman said.

Indicating more cautious approach to bad customer debt, Lucent nearly doubled funds it set aside for “doubtful” accounts in fiscal 2000, according to SEC filing. Lucent boosted reserve by 58% to $501 million in fiscal year that ended Sept. 30. Company, which had set aside $318 million in 1999, added $252 million to that this year. Despite extra cushion, Lucent wrote off only $69 million for bad debt, compared with $112 million in 1999. Heftier debt reserve is seen as way to make Lucent less vulnerable in future to uncollected bills and defaults by customers to which it has extended credit. Manufacturers such as Lucent extend fairly generous credit terms to new telecom companies such as CLECs to encourage them to buy equipment as they grow. However, in recent times CLECs have begun facing financial trouble, making manufacturers vulnerable to debt collection problems.