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.
FCC told Congress in report Tues. it wouldn’t make recommendations on specific measures to facilitate provision of local signals to subscribers in rural markets by direct-to-home (DTH) satellite and multichannel video programming operators because licensing process hadn’t been completed and it would be premature to make recommendations before licensing. Under requirement of Rural Local Broadcast Signal Act, Commission must inform Congress of ways its licensing and authorizations have helped provide local signals to satellite TV subscribers in remote areas.
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.
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.
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.”
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.
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.
Capitol Bcstg.-backed AccessDTV said it was starting DTV-to- PC service at Consumer Electronics Show in Las Vegas this week. AccessDTV offers package of hardware, software and services to allow DTV to be displayed on PC monitors, including universal analog/digital tuner card, antenna to receive broadcast DTV signals, DTV video card, software including on-screen remote control, interactive program guide, personal video recorder-like functionality. Package allows PC (at least 300 MHz) to output DTV and AC-3 digital audio, company said. Pricing hasn’t been set, but it’s expected to be under $500 for one-time purchase, with option of smaller upfront fee combined with monthly subscription. DTV broadcaster Capitol is minority investor, with rest coming from what company called “techno-angels.” It’s currently raising additional financing. First hardware is expected to be in consumer hands by end of March and AccessDTV has deals with several unnamed suppliers. “Most people could tune DTV broadcasts today, but they simply don’t have the right equipment,” COO Doug Leech said: “AccessDTV enables PC users to experience… DTV interactively and affordably.”
Motorola said Fri. it will unveil its iRadio satellite car radio system at Consumer Electronics Show at Las Vegas Convention Center this week. New car radio system is one of many digital radios that companies are planning to compete with XM and Sirius Satellite Radio for customers, industry officials said. IRadio, developed by Motorola Telematics Unit is expected to offer satellite services and interact with Internet through digital cellular networks which are primarily used for voice calls. Company is hoping to integrate iRadio with satellite navigation systems and emergency service products that are standard in many cars and trucks. CES is being used to showcase prototype with hopes of attracting manufacturer of car audio products, firm said. Motorola believes “right company” could have products ready for introduction to marketplace in one year, spokesman said.