AT&T and Insight Communications said they closed on their previously announced deal to add 530,000 cable subscribers to their Insight Midwest joint venture managed by Insight. Under agreement, AT&T is contributing systems in Ill. with 250,000 subscribers, while Insight is adding systems in Ga., Ill., Ind. and Ohio with 280,000 customers. Deal expands Insight Midwest’s total reach to 1.4 million cable subscribers, almost entirely in Ill., Ind., Ohio and Ky. In conjunction with transaction, Insight said it closed on new $1.75 billion credit facility to finance expanded venture.
Cellular Telecommunications & Internet Assn. (CTIA) urged FCC to continue to forego regulation of wireless intercarrier roaming, contending automatic roaming rule isn’t needed. Comments are in response to notice of proposed rulemaking (NPRM) in which FCC examines whether mandatory automatic roaming rule remains unnecessary. NPRM said agency wouldn’t mandate automatic roaming unless market forces along couldn’t ensure availability of competitive roaming services. “The Commission’s current roaming requirements have proven sufficient to foster cellular and PCS roaming services without imposing undue costs” on industry, CTIA said. National Telephone Cooperative Assn. (NTCA) didn’t ask FCC to implement mandatory automatic roaming requirement, but asked it to continue to monitor situation to “ensure that roaming agreements do not discriminate against small and rural CMRS providers.” NTCA said market appears to be working “and automatic roaming agreements are generally available where it is technically and economically feasible.” While rural carriers don’t have trouble striking roaming deals, sometimes terms are “unjust,” group said. In such cases, NTCA said, “the rural carrier pays more for the privilege to roam in the urban territory than the large carrier pays to roam in the rural territory.” Rural Ala. carrier Corr Wireless Communications went step further, saying market is “clearly not working on its own to prevent abuses of power.” “Small independent carriers do not have the economic clout to bargain with large carriers who have their own wide-area footprints for automatic roaming,” Corr wrote, citing alleged problems with Cingular Wireless. “This permits large carriers to engage in the very sort of bullying abuses which led” to regulatory curbs for wireline competitors, Corr said. Corr is asking agency to adopt automatic roaming rule that tracks basic interconnection obligations of common carriers under Telecom Act. Several commenters cited concerns about wireless consolidation, which they said creates less incentive for larger competitors to strike low priced roaming pacts.
FCC is holding first meeting of World Radio Conference (WRC) Advisory Committee Jan. 30, 10 a.m.-noon in Commission meeting room. International Bureau’s Planning & Negotiations Div. will take lead on FCC’s WRC efforts, with Julie Garcia directing preparations and serving as designated federal official to advisory panel. Brian Fontes, Cingular Wireless vp-federal regulation, and Jennifer Warren, Lockheed Martin senior dir.- telecom trade and regulatory affairs, are chmn. and vice-chmn. of committee. FCC said particular emphasis at next WRC in June 2003 will be on International Mobile Telecommunications-2000, terrestrial wireless interactive multimedia services, sharing in 40 GHz with aeronautical mobile-satellite services. FCC also expects focus on public protection and disaster relief, broadcasting-satellite interregional sharing, amateur and amateur satellite services, high frequency broadcasting, regulatory procedures for satellite networks. “Our priority during this WRC cycle is to successfully complete the domestic preparatory process in a time frame that allows the U.S. to be a leader at regional and international meetings,” International Bureau Chief Donald Abelson said. FCC also has created new Web site: http://fcc.gov/wrc-03.
Michael Brouder, ex-WBZL Miami, appointed dir.-creative services, WGN Cable, Chicago… Ronald Walter promoted to vp-govt. & cable relations, N. Y. Times Bcst. Group… Kathy Payne promoted to dir. of programming, Cox Communications… Bob Walker, ex-KQMB Salt Lake City, becomes program director, WKTI Milwaukee… Dave Wampler promoted to dir. of finance-central and eastern regions, CableRep Advertising… Philip Bouchard, ex-ThinkLink, appointed CFO-COO, Chapter 2… Bob Collet, ex-Teleglobe, named pres., Velocita… Jack Reily, ex-Broadview, appointed exec. vp-corporate development, Efficient Networks… Mona Klausing, ex-Novatel, named dir.-product mktg., Invertix… Craig Young, AT&T Canada vice chmn. and dir., joins board of Global Metro Networks… Joseph Armstrong, ex-State Of The Art Inc., appointed CFO, Sorrento Networks… Davis Masten, co-founder, Cheskin Research, elected to Truste board… Minoru Nakamura, ex-NTT PC Communications, appointed pres., AOL Japan… Alan Amico promoted to CPO, PeopleFirst.com… Marc Randall advanced to vp- engineering, Force10 Networks… Lance Simmens, ex-Small Business Administration, appointed dir.-govt. relations, Screen Actors Guild… Promoted at 20th Century Fox: Ted Gagliano to pres.- postproduction, Joe Hartwick to pres.-physical production… Travis Rutherford, ex-Dreamworks and Disney, appointed senior vp, MGM Consumer Products and Interactive Divs.
Interim committee of W.Va. legislature, studying ways to regulate telemarketers, filed report that recommended no legislation for 2001 session. Group had considered restrictive measures such as state “no-call” list, but concluded existing laws were sufficient to address any telemarketing problems. Several state legislators said they planned to disregard panel’s report and would be introducing telemarketing bills this session.
Excite@Home said it met its year-end subscriber target, closing 2000 with 2.95 million high-speed data customers worldwide, up from 2.31 million at close of 3rd quarter. Company said it grew more than 25% in 4th quarter, thanks partly to introduction of its QuickStart Kit self-installation in RadioShack stores in several major Comcast markets. Excite@Home said it plans to expand its retail presence by hundreds of stores this year, extending its QuickStart Kit program to AT&T and Cox territories as well. Separately, Excite@Home said it had withdrawn from its earlier deal to buy online games company Pogo.com for undisclosed price. Company, which didn’t give reason for pulling out of agreement, said it will retain its 10% stake in Pogo and continue to offer Pogo’s online games to subscribers.
Hughes Electronics said 2 of its subsidiaries, DirecTV and Hughes Network Systems, would start new high-speed satellite Internet service “Powered by DirecPC” as key part of expanding broadband strategy. Company plans to bundle satellite Internet service with DBS and offer it to DirecTV DBS subscribers. Service is expected to begin in this quarter.
In response to FCC’s latest video competition report (CD Jan 9 p5), NCTA said report confirms “irrefutable trend of the last five years” that DBS has emerged as cable’s biggest video rival and “is rapidly becoming a significant competitor in data as well.” NCTA argued that report, which indicated that cable’s dominance of pay TV market is slipping because of DBS inroads, also shows why no new regulation of cable industry is needed. “Competition from satellite, wireline overbuilders and wireless operators is benefitting consumers,” group said. “It has made cable rise to the challenge by providing digital tiers, video-on- demand and data and phone services. This competition is reason enough to reject government micro-management of these communications markets.”
Financially-troubled CLEC ICG disclosed Tues. it’s trimming workforce by 500 by Jan. 31 as part of reorganization. “This process is a key component of implementing our refined business plan and equal to the progress we have made in reducing overall expenses and improving network performance,” said ICG CEO Randall Curran. ICG went through series of CEOs last fall, amid reports of missed revenue forecasts, downturn in stock prices and shareholder lawsuits. ICG received approval from U.S. Bankruptcy Court, Wilmington, Del., of its agreement with Chase Manhattan Bank to receive $200 million of new debtor-in-possession financing. Company said that as of Dec. 31, it had more than $200 million in cash.
Motorola will provide 3rd-generation wireless network upgrades for Sprint PCS under infrastructure agreement, terms not disclosed. Motorola said it would provide CDMA equipment with interoperability specifications and cdma2000 1x high-speed packet data “in a significant portion” of Sprint wireless markets. It said upgrade orders cover Sprint operations in Charlotte, Chattanooga, Chicago, Cincinnati, Cleveland, Columbus, O., Greensboro, N.C., Honolulu, Knoxville, Norfolk, Raleigh, Richmond. Separately, Motorola said it completed 3G calls in Sprint PCS lab in Kansas City as part of tests before commercial deployment of next-generation wireless systems. Most recent trial involved Motorola’s 4-carrier base station that uses interoperability standard to connect to packet data serving node.