MPAA filed several major objections to CableLabs’ full final draft of its anticopying technology license for advanced digital cable set-top boxes, signaling that fight over controversial encryption technology wasn’t over (CD Dec 29 p1). In comments submitted to FCC late last month, MPAA said it was “concerned with a number” of provisions in POD Host Interface License Agreement (PHILA) and was “uncertain as to how some of these and other provisions will work in practice.” Group said its concerns included technology’s: (1) “Apparent ineffective protection against unauthorized Internet retransmission of all content, including broadcast.” (2) “Unprotected high-resolution output of most categories of content from those devices.” (3) “Copying and permanent storage in those devices of all content, including high- value content, which individual copyright owners and cable operators may have voluntarily negotiated to treat as ‘copy never.'” To ease such concerns, MPAA said “the only alternative” for cable operators would be to “turn off the OpenCable box” and prevent DTV programming from reaching consumers. It said such result “would have a negative effect on consumer expectations, particularly if they were not given adequate notice from equipment manufacturers.” MPAA said it would continue to work through those and other issues with CableLabs and 5C companies “in a prompt, good-faith and constructive manner.”
Telemonde and Global Crossing renegotiated $52 million agreement over transatlantic capacity. In Dec. 29 SEC filing, Telemonde said it issued 5 million shares of convertible preferred stock at 1 cent par value to Global Crossing and agreed to purchase $8 million in services from company in next 5 years. In exchange, Global Crossing released Telemonde from outstanding commitment to buy almost $43 million of transatlantic capacity. Just under $12 million of Telemonde debt is rescheduled, at 7% interest, with final payment due Nov. 2002.
Sea Launch Commander and Odyssey Launch Platform are headed toward equator to launch Boeing 702 model XM-1 satellite, dubbed Roll. Launch window for first of 2 Sea Launch missions for XM Satellite Radio opens at 5:35 p.m. ET Jan. 8. Launch will take place from open sea 3,000 miles from Long Beach, Cal.
Cablevision Systems reportedly has placed its Rainbow Media Holdings programming group up for sale after first planning to spin off unit as separate tracking stock. N.Y. Times said Cablevision, which had been considering move for weeks (CD Dec 22 p6), already had contacted USA Networks, NBC, Comcast and Liberty Media Group, 4 most likely suitors. Cablevision reportedly is seeking $5-$6 billion for Rainbow. Companies have until Jan. 16 to submit bids. Move came as UBS Warburg downgraded rating on Cablevision stock to buy from strong buy Tues. because Rainbow sale would “remove a major catalyst for the stock.”
Bill introduced for new session of N.J. legislature would make that state 13th with state-administered “No-Call” list to curb unwanted telemarketing calls. It will be assigned to Telecom & Utilities Committee. Under AB-3028, sponsored by N.J. state Rep. Linda Greenstein (D-Middlesex), state No-Call list would be maintained by Dept. of Consumer Affairs or by private vendor contracted to state. List would be updated quarterly. Telemarketers that called names on list would be liable for $2,000 fine per call. Money collected from fines would be used to educate public and telemarketers about No-Call list. Exceptions to rule would include calls (1) to existing customers or in connection with established business relationship, (2) in response to customer’s request, and (3) for purpose of making sales appointments. Bill also would require all N.J. phone directories to include notice about no-call list and signup instructions. To date, 9 states have put no-call list laws into effect -- Ala., Alaska, Ark., Conn., Fla., Ga., Ky., Ore., Tenn. In addition, Ida., Mo. and N.Y. will be putting no-call laws passed in their 2000 legislative sessions into effect by midyear.
FCC is considering proposed rulemaking that would regulate interactive TV (ITV) services carried by all cable operators, knowledgeable sources confirmed Tues. Proposed regulations would be likely to ban all cable systems offering interactive services from blocking ITV triggers from rival content providers, similar to ITV conditions that FTC recently imposed on AOL’s pending purchase of Time Warner (TW). But sources said FCC rules could go further than FTC merger conditions, prohibiting cable operators from favoring their own content by caching it on local servers or sending it at higher data speeds than content from unaffiliated providers. “I'm sure they're talking about all sorts of things,” said source who declined to be identified.
Rep. Tauzin’s (R-La.) selection as next chmn. of House Commerce Committee was all but official Tues., well-placed sources told us, after House Rules Committee released long-rumored proposal to create expanded Financial Services Committee. New panel is expected to be headed by Rep. Oxley (R-O.), Tauzin’s rival to succeed former Commerce Committee Chmn. Bliley (R-Va.). Full House will vote today (Wed.) on committee changes, and Republican leadership will choose committee heads Thurs.
Ohio Gov. Bob Taft (R) appointed Cleveland transit executive Clarence Rogers to PUC seat of Craig Glazer, who resigned; if confirmed, Rogers’ terms would end in 2006… Changes at Global Crossing: Co-COO David Walsh promoted to COO and co-COO Gary Cohen named COO, Global Crossing Solutions; Wally Dawson, CEO, Atlantic Crossing, appointed exec. vp-Global Network; Wim Huisman, CEO, Europe, retires, Carl Grivner, COO, N. America, assumes his duties; James Demitrieus, ex-pres., IXnet, named COO, N. America. Promoted to exec. vps: Daniel Cohrs, CFO; James Gorton, gen. counsel; John Comparin, human resources; Joseph Perrone, finance… Stephen Knup, ex-Coopers & Lybrand, named pres.-COO, Superior TeleCom… John DuBois, ex-Redback Networks, appointed CEO, Nx Networks… Nextel’s Richard Lefave elected to Mi8 board.
CompTel said it was considering legislative campaign to urge structural separation on Bell companies in return for broadband LATA freedom. “This is not a wild-eyed theory,” CompTel Pres. Russell Frisby said at Tues. news briefing. Think of it as “return to the MFJ era,” he said, referring to Modified Final Judgment that laid ground rules for 1984 AT&T divestiture. Frisby said trade association hadn’t decided whether to recommend separation idea to Congress but idea would be to follow what Pa. PUC had required of Verizon -- separation of retail and wholesale operations. In return, Bells’ retail units would receive permission to offer data services across LATA lines without gaining Sec. 271 approval from FCC, Frisby said: “My sense is there are some people on the Hill who would be interested.”
Satellite Bcstg. & Communications Assn. (SBCA) finished 1999 $127,000 in red after donations dipped and expenses rose slightly, according to 1999 Form 990 tax returns. Total revenue was $5.1 million, down from $5.3 million in 1999, but expenses edged up to $5.3 million from $5.28 million. Membership dues dipped to $2.1 million from $2.2 million, but still were over $1.6 million in 1998. Revenue from annual convention was $1.87 million, Sky Trends $350,000, Sky Forum $325,000. Pres. Charles Hewitt received $422,311 in salary plus $50,000 in benefits.