Howard Buskirk

An FCC order released Wed. that gives equipment makers another year to comply with new restrictions for unlicensed devices that operate in the 5.250-5.350 GHz band (CD Feb 24 p12) was a win for companies that make equipment for the frequency, sources said Thurs. At issue was possible complications for a class of devices made by companies including Cisco, D-Link, Atheros Communications, Motorola and Proxim that operate at 5 GHz, as an alternative to the more commonly used 2.4 GHz operations.

Two major cable operators, Rogers in Canada and Adelphia in the U.S., announced they'll use Nortel as their primary softswitch vendor as they roll out VoIP. Nortel previously signed agreements with Cox and Charter in the U.S. as cable operators move to offer phone service as part of a triple package along with video and broadband. With Wed.’s announcements, the top 5 U.S. MSOs have made at least preliminary decisions on who will supply their switches.

Alcatel and Microsoft announced Tues. they will jointly develop an Internet-TV platform (IPTV), with SBC the first operator to use it as a springboard into video. Microsoft and Alcatel officials on a conference call with reporters said the agreement is a major development for IPTV.

Regulatory issues and a potentially much faster approval process were cited prominently by Qwest in a letter to MCI as reasons, along with a higher dollar offer, MCI should accept Qwest’s offer over Verizon’s. But analysts told us Fri. the regulatory argument in particular may prove spurious, since regulatory review is a black box. A key factor could instead be increasingly vocal opposition to the Verizon-MCI deal by major stockholders.

Nextel said Thurs. it expects to spend $900 million in 2005 as it begins to implement the 800 MHz rebanding plan, approved by the FCC last year, which will eat up much of the company’s projected $2 billion free cash flow. About $600 million will be spent on new capacity sites, filters and working with public safety radio systems and $300 million to relocate broadcast auxiliary users and microwave incumbents from 1.9 GHz to 2.1 GHz, Nextel officials said on a call with analysts discussing 4th- quarter results.

Auction 58, which has officially ended after almost 3 weeks, raised $2.043 billion, substantially less than the $3 billion to $4 billion estimated by analysts, and only a fraction of the $16.8 billion bid in auction 35, the original attempt to sell NextWave’s former licenses in late 2000-early 2001. Gross bids before subtraction of bidding credits stood at $2.254 billion. The auction ended after 91 rounds of bidding.

In his first analyst call since Qwest’s failed attempt to acquire MCI over rival Verizon, CEO Richard Notebaert said Tues. his company remains on the look-out for other opportunities and hasn’t closed the door on taking another run at MCI. Notebaert also told analysts that after 3 years of revenue declines, Qwest has the “opportunity” to up revenue in 2005.

Verizon will buy MCI for more than $8.9 billion, the companies said Mon., including assumed debt, giving Verizon MCI’s IP-based system and marketing teams around the world, as well as its govt. contracts business. The deal will help Verizon move most of its calls to MCI’s IP- network, which company officials said will result in substantial cost savings. Verizon officials told analysts they don’t expect to have to divest any assets to win approval from the FCC and the Dept. of Justice.

The Bells lined up against competitors on a Verizon petition seeking forbearance from Title II and Computer Inquiry rules as they apply to broadband service. The Bells said the broadband marketplace is highly competitive and the regulatory structures they face give cable providers in particular an unfair advantage. Competitors argued that Verizon wants to destroy competition. The 2 sides recently faced off in a similar battle over a BellSouth forbearance petition also before the Commission.

A “leaner, more robust and more agile” Sprint will see continued single-digit revenue growth in 2005 -- with double-digit growth in wireless making up for double-digit losses in its long-distance unit and downward pressure on its local service -- Sprint’s top officials said Thurs. during the company’s annual investor conference in N.Y.