NCTA struck back at Consumer Electronics Retailer Coalition (CERC) late Tues. in continuing battle between cable and CE industries over DTV set labels. In 11-page filing with FCC, NCTA called again for Commission to reconsider its 3 proposed “Digital Cable Ready” labels for DTV receivers and instead adopt revised, more descriptive labels favored by cable industry. Accusing CERC of making “an unfortunate knee-jerk reaction to NCTA’s attempt to offer a constructive and pro-consumer labeling proposal,” cable group argued that CERC’s concerns about cable’s labeling proposals were “misplaced” because NCTA “merely has proposed more informative labels for the categories of DTV sets for which the FCC adopted labels.” NCTA also contended that CERC “is mixing apples and oranges” by confusing “the cable industry’s obligations under the navigation devices provisions of the Communications Act with the use of the term ‘cable ready’ in this proceeding.” Finally, NCTA said CERC “misrepresents” findings of cable’s focus group research indicating that consumers “reject the ‘Digital Cable Ready’ labels as inadequate and confusing descriptors of the DTV sets.” Group said CERC, which questioned findings and legitimacy of study, “offers no evidence to the contrary.”
Canada’s Copyright Board is moving forward on Internet Webcasting tariff that may give legitimacy to such sites as iCraveTV and JumpTV (CD Oct 27 p8, Sept 26 p2). Board Secy. Gen. Claude Majeau sent letter to parties calling for interim hearings March 12 on JumpTV’s application for Internet retransmission tariff. Participants have until end of this week to respond to timetable that calls for prehearing conference early in March, he said.
FCC approved WorldCom’s acquisition of Intermedia Wed., subject to only one condition -- that Intermedia and its subsidiaries be regulated as dominant in their provision of service on U.S.-Brazil route. Commission action transferred control of wireless, international and domestic wireline licenses from Intermedia to WorldCom. FCC’s action was somewhat perfunctory because WorldCom is required to divest all of Intermedia except its controlling interest in Web-hosting company Digex under consent decree with Dept. of Justice (CD Nov 20 p4). FCC said that it therefore viewed this order as “interim” transfer of licenses and authorizations. It said “once a third-party purchaser is identified, we will review the subsequent transfer of control of the Intermedia assets to ensure the public interest is served.” Agency rejected AT&T concern that merger would give WorldCom too much dominance over Internet backbone market. FCC pointed out that it didn’t regulate Internet Web hosting but said that, regardless, it disagreed with AT&T. WorldCom spokesman said company still needed “handful of state approvals” before deal could go through.
CNN announced broad personnel and operational changes Wed. to improve its newsgathering operations and streamline its global TV and Web services. Changes introduced by new senior management team are to: (1) Integrate Newsgathering Div., with journalists providing comprehensive reporting for all of CNN’s TV, radio, Web sites and ancillary services such as wireless devices and private networks. (2) Integrate TV channels and their respective Web sites such as CNN.com, CNN/SI, CNNfn, CNN International and CNN en Espanol under single management structure. (3) Introduce new technology to improve speed and efficiency of field reporting, editing and distribution. As result of changes, company will cut work force just under 10% (400 members of News Group staff) in coming weeks, company said; 1/3 of those positions are current CNN Interactive staff and another 1/3 from programming. After personnel and operational changes, CNN will remain among world’s largest news organizations with 3,900 employees, 1,000 of them devoted to newsgathering, company said. Among other initiatives announced: (1) Setting up a Newgathering “superdesk” in Atlanta to enhance cross-service/platform communication and allow for faster decision-making. (2) Combining domestic and international operations of Newsource, CNN’s affiliate news service.
NorthPoint Communications filed for Chapter 11 protection in U.S. Bankruptcy Court, San Francisco, and said it planned to sell “substantially all” of its business and assets. NorthPoint CEO Liz Fetter said company would look for “financially sound strategic partner who is interested in our network, our skilled and dedicated employees and our attractive customer base.” Spokesman said NorthPoint would to go forward with suit it filed against Verizon for pulling out of planned merger (CD Dec 11 p6). Fetter said that when Verizon “unexpectedly pulled out of the merger… it created a funding shortfall” for NorthPoint. Company said it secured commitment for up to $38 million of debtor-in- possession financing from its existing lenders to continue day-to- day operations.
Following months of anticipation, Intelsat finally begins 6- month quiet period today (Thurs.) before becoming private company July 18, Intelsat CEO Conny Kullman said at Washington Space Business lunch Wed. It’s final step in Intelsat privatization authorized by Orbit Bill (CD Aug 4 p2). Kullman said company would “complete all internal work” by May. Company must conduct IPO by 2002. Privatization of Intelsat has been one of major issues in satellite industry for years, with several companies, including PanAmSat filing numerous petitions at FCC protesting what many called “preferential treatment” of company (CD July 28 p11). Kullman called transition biggest step since 1964 founding.
Women hold smaller percentage of jobs in cable and DBS than year ago, while minorities hold more cable positions but fewer DBS jobs, FCC said in new report. Relying on annual employment reports submitted by cable operators, Commission found that total cable industry employment at companies with more than 5 employees had slipped to 130,953 in 1999 from 133,705 in 1998 and total female representation fell to 40.4% from 41.7%. Among full-time employees in upper-level posts, women held 26.9% of jobs in 1999, down from 28.9% year earlier. At same time, minorities boosted their representation in total cable work force to 32.7% from 30.9% and increased their share of upper-level jobs to 29.1% from 21.7%. Other multichannel video program distribution (MVPD) operators, consisting largely of DBS providers, nearly doubled their overall employee base to 10,322 in 1999, but total female representation fell to 43.2% from 52.7% and minorities to 27% from 27.7%. Among full-time employees in upper-level jobs, however, women increased their share to 33.6% from 32.2% and minorities to 22.9% from 16.9%.
FCC issued schedule for reviewing Verizon’s refiled application to offer long distance service in Mass.: (1) Feb. 6 for comments, including those by Mass. Dept. of Telecom & Energy. (2) Feb. 21, Dept. of Justice evaluation. (3) Feb. 28, reply comments. (4) April 16, deadline for FCC action. FCC Common Carrier Bureau said it would be available for ex parte meetings on application Jan. 30 and Feb. 23 in case parties wanted to discuss issues they planned to bring up in comments or replies.
Time Warner Cable and Intellicast.com said they teamed up to start Broadband Weather, new online weather information service delivered over high-speed cable lines, in MSO’s Portland, Me., system. New on-demand, 24-hour service features hourly local weather forecasts, national forecasts, video segments, local radar, storm watches and warnings, severe storm tracking. Time Warner said it would offer broadband service to its Road Runner subscribers in Portland area first and then extend it to several other regions.
Eight Chris-Craft TV stations will remain UPN affiliates under new agreement announced this week. Stations, which are being bought by News Corp., had been considered possible candidates for switch to Fox network. Deal runs through 2001-2002 TV season. Terms weren’t disclosed.