FCC’s C- and F-block auction hit $16.07 billion Tues., with Verizon Wireless now accounting for more than half of bids with $8.38 billion. Aggressive bidding for N.Y.C. spectrum flirted with $2 billion mark, with Verizon submitting separate bids of $1.8 billion for 2 licenses there and Cingular Wireless-backed Salmon PCS $1.2 billion for 3rd. Salmon PCS, in which Cingular has 85%, noncontrolling stake, bid $3.1 billion, followed by AT&T Wireless-backed Alaska Native Wireless with $1.3 billion, DCC PCS with $960.8 million and VoiceStream with $960.8 million. Bidding for 422 PCS licenses began Dec. 12 and completed 55th round Tues. Bidding for N.Y.C. licenses so far has outstripped that for next largest wireless market of L.A., where Verizon and DCC PCS have bid closer to $515 million.
PASADENA -- TV programmers agreed with network officials that there would be one or more strike on production of programming this spring by one or more Hollywood guild, in presentations to TV critics here. Seven studio heads predicted strike, saying it was “inevitable” and would be “devastating.” If writers and/or actors go out, it would drive viewers away, cause “incalculable” loss of jobs and hurt quality of programming -- with reality shows, as planned by networks as substitute (CD Jan 11 p3) not acceptable alternative, producers said. Strike “seems inevitable because both positions are entrenched,” said Dana Walden of 20th Century Fox.
PanAmSat asked FCC to defer deadline for filing comments on supplemental information provided by Intelsat in application to construct, launch and operate C-band and Ku-band satellites. PanAmSat wants comment period delayed until Commission has: (1) Acted upon Intelsat request, which PanAmSat opposes, for confidential treatment of documents filed along with supplemental information. (2) Determined whether Intelsat should be required to furnish additional relevant and material information.
Moody’s placed senior unsecured A2 debt ratings of Portugal Telecom (PT) on review for possible downgrade following carrier’s disclosure that its Brazilian subsidiary was buying 49% of voting rights of Brazilian wireless carrier Global Telecom. PT’s Brazilian arm, Telesp Celular Participacoes (TCP), is buying stake for $1.2 billion, including assumed debt, giving it overall investment of 83% in company. Moody’s concluded that move was in line with PT’s international growth strategy but raised concerns that “the magnitude of the investment may constrain the financial ratios of the group over the near term, as well as expose it to a higher risk operating environment.”
PanAmSat said it had record $1.02 billion revenue and $694 million in earnings before interest expense, income taxes, depreciation and amortization (EBITDA) of 2000, up from $810.6 million revenue and EBITDA of $618.8 million last year. Net income edged up to $125.5 million from $122.2 million in 1999. Company said 4th-quarter earnings were $202.9 million, with $136.2 million in EBITDA. Company said it also signed $400 million in new long-term service agreements in 4th quarter. PanAmSat also projected total revenue of $1 billion for 2001, including $205-$210 million for first quarter.
With FCC Chmn. Kennard scheduled to leave Fri., there’s still no word from Bush Administration on replacement, sources close to process said Tues. Comr. Powell remained likely choice, at least in interim, but rumor that he already had talked to one bureau chief about staffing proved unsubstantiated.
WorldCom asked Mo. PSC to suspend its review of Southwestern Bell Telephone (SBT) Sec. 271 interLATA long distance bid. WorldCom said Jan. 8 decision by 8th U.S. Appeals Court, St. Louis, striking down PSC- approved interconnection agreements based on total element long run incremental costs (TELRIC) meant local exchange competitors had no legal access to SBT’s network. WorldCom contended it was impossible to have legal interconnection agreements based on illegal prices. It said most other CLECs in Mo. based their interconnection agreements on AT&T- SBT contract, so court’s action also voided those agreements, meaning SBT couldn’t be in compliance with Sec. 271 checklist. SBT said it would continue to honor rates company agreed to before its long distance application, but some CLECs and Mo. Office of Public Counsel said competitors were in position of relying on SBT’s oral promises, with nothing in writing that was enforceable. Court’s decision was on an SBT appeal of PSC arbitration decision in interconnection pricing dispute that upheld AT&T’s position favoring TELRIC-based prices. Mo. PSC is considering asking for clarification from court, but also could ask that decision be stayed pending appeal to U.S. Supreme Court.
Buyout firm Forstmann, Little agreed to buy Citadel Communications for $1 billion plus assumption of $1 billion debt, companies said. Citadel owns 143 FM and 66 AM stations in 44 markets.
Disney filing at SEC Fri. disclosed that CEO Michael Eisner received $11.5 million bonus in fiscal 2000, plus $813,462 salary and 2 million shares of Disney Internet Group. Disney said large bonus was given as result of company’s “very strong year.” Eisner had salary of $750,000 in 1999, when profits were down, didn’t get bonus. In fiscal 2000, Disney reported profits rose 26% to more than $2 billion. Pres.- COO Robert Iger received $1.08 million salary, $5 million bonus, 100,000 Internet shares. Board Chmn. Sanford Litvack’s salary was $787,500, plus $2 million bonus, 400,000 Internet shares.
Datacasting company iBlast said it began field tests of its broadcast data service at TV stations KTLA L.A., KICU-TV San Jose, KGTV San Diego, KPNX Phoenix-Mesa, WOFL Orlando. IBlast expects to deliver data to PCs via network of 225 stations when it starts commercial service. Data being delivered include video clips, software, MP3 audio, games, other broadband content. Field tests are to last through March and company expects to reach 50% of U.S. households by end of year.