Moody’s assigned B3 rating to XO Communications’ proposed $450 million convertible subordinated notes to “reflect the relatively early development stage of the company with positive cash flow generation… still likely to be approximately 1 to 2 years away.”
Helgi Walker, aide to FCC Comr. Furchtgott-Roth, will move to White House as assoc. White House counsel and special asst., his office said. Walker, who specialized in mass media and cable issues, will be replaced by Ben Golant of FCC Cable Bureau.
Mont. House State Administration Committee completed hearings Wed. on bill that would require state agencies to retain internal and external e-mail memos and letters as public record, just as they must do now with correspondence on paper. Measure (HB-112) would clarify state open records law to include e-mail among agency records that must be retained and made available to public. Panel has until mid-Feb. to move bill. Measure also would make it crime to harass or threaten anyone via e-mail. Penalties would be same as for telephone harassment. State Rep. John Brueggeman (R- Polson), bill’s sponsor, said e-mail had become common method for conducting official state business, but effectively was exempt under current law from requirements that official correspondence be kept for public inspection. Other supporters cited incident last fall in which environmental group seeking internal memos from state Natural Resources Dept. to bolster case in timberland dispute discovered material had been deleted in routine purge of e-mail files. Supporters also said making e-mail harassment crime would close loophole in current law. No opponents spoke at hearing.
BellSouth told FCC it was opposed to request by Dept. of Justice and FBI for additional security requirements under Communications Assistance for Law Enforcement Act (CALEA). DoJ/FBI asked agency in Nov. to require carriers to: (1) Submit name, phone number, e-mail address and other contact information for person designated as point of contact for CALEA issue. (2) Notify FCC in writing or by e-mail of any change in such contact information. BellSouth said requirements were “unnecessary, burdensome and inconsistent with the Commission’s minimal set of guidelines for compliance with CALEA’s systems security and integrity provisions.”
Research firm pulver.com forecast that wireless revenue would top local wireline revenue by 2003, based on recent price reductions by mobile providers. “The wireless industry has erased the twentyfold wireline price advantage that existed in 1984, completely changing the business case for who represents a potential wireless customer,” pulver.com CEO Jeff Pulver said. Report said if 25% of residential wireline customers convert to wireless, industry would gain 26 million subscribers, representing $14 billion potential revenue increase. That would give wireless industry revenue of $91 billion in 2003, compared with $90 million for local wireline industry, pulver.com projected.
N.Y. PSC approved rate restructuring plan for Citizens Telecom that will make rates uniform in all of carrier’s service areas across state by 2005. New rate structure will replace hodgepodge of rates from company’s acquisitions of small telcos over last 20 years that led to situations where customers were charged substantially different rates for similar services without cost justification for difference. Plan adopted Tues. provides for phasing in new rates over 4 years, starting in 2002, with annual increases limited to $1 monthly for residential customers and $3 per line monthly for business customers. Customers receiving rate cuts under restructuring will see them implemented this month. New rates also will cover Citizens’ revenue losses from expiration in near future of long-term intercarrier compensation agreements with Verizon for extended local calling. Plan also eliminates Citizens’ rural zone charges to customers beyond base rate areas of its local exchanges and makes Citizens’ local calling areas similar in size to those of Verizon. Citizens is 4th largest incumbent in N.Y., with 307,000 lines in 126 exchanges scattered across state.
Ameritech told Ind. Utility Regulatory Commission (IURC) it wouldn’t agree to agency’s request that Ameritech give bigger credits to customers that suffered lengthy service outages during last summer’s service quality crisis. Ameritech last fall voluntarily offered residential customers flat $12 credit and small-business customers flat $40 credit. But IURC last month said compensation was insufficient and strongly suggested company should pay up to $20 per outage day to residential customers and up to $40 per outage day to businesses, similar to outage compensation plan Ameritech agreed to in Wis. But in meeting Tues. with IURC Executive Dir. Michael Leppert, Ameritech Ind. Pres. George Fleetwood said his company wouldn’t be able to honor IURC’s request and further negotiation would be pointless. Ameritech spokesman said carrier believed best use of its resources was investing in network improvements, not issuing additional credits. He said different conditions in Wis. prompted Ameritech to issue larger outage credits there, but he didn’t elaborate. IURC’s Leppert said IURC up to now had hoped informal prodding of Ameritech through requests would have been enough to improve service and get adequate compensation for customers. He said next step would be formal investigation into Ameritech’s network operations and service management. But IURC has no legal power to fine utilities except as part of negotiated regulatory agreements. Pending proposal for renewal of Ameritech price cap regulation, which comes up for hearing Jan. 16, includes up to $30 million in annual penalties for service quality failures, $746 million in network investments and $180 million in rate cuts.
Hearst-Argyle TV will take over management of WMUR-TV (Ch. 9, ABC) Manchester, N.H., under local management agreement, companies said. Deal is effective until Hearst-Argyle completes acquisition of station from Imes Communications.
Most recent round of DTV standard tests was flawed, COFDM backer Sinclair Bcst. said in memo we obtained Wed., day before start of closed-door DTV summit in Washington. Sinclair said COFDM tests inadvertently were conducted with receiver that lacked front-end filter, causing set to be overloaded in many situations. At very least, mistake and test results indicated that NAB and MSTV should go ahead with 2nd round of testing on DTV systems, Sinclair Vp-New Technology Nat Ostroff said in memo. Other broadcast officials didn’t immediately comment on memo.
StreamAudio will provide audio streaming and revenue-sharing ad insertion technology for all 83 Cox Radio stations under new agreement with Cox Radio Interactive. Cox is 4th largest radio owner in U.S., based on revenue.