Following months of anticipation, Intelsat finally begins 6- month quiet period today (Thurs.) before becoming private company July 18, Intelsat CEO Conny Kullman said at Washington Space Business lunch Wed. It’s final step in Intelsat privatization authorized by Orbit Bill (CD Aug 4 p2). Kullman said company would “complete all internal work” by May. Company must conduct IPO by 2002. Privatization of Intelsat has been one of major issues in satellite industry for years, with several companies, including PanAmSat filing numerous petitions at FCC protesting what many called “preferential treatment” of company (CD July 28 p11). Kullman called transition biggest step since 1964 founding.

NorthPoint Communications filed for Chapter 11 protection in U.S. Bankruptcy Court, San Francisco, and said it planned to sell “substantially all” of its business and assets. NorthPoint CEO Liz Fetter said company would look for “financially sound strategic partner who is interested in our network, our skilled and dedicated employees and our attractive customer base.” Spokesman said NorthPoint would to go forward with suit it filed against Verizon for pulling out of planned merger (CD Dec 11 p6). Fetter said that when Verizon “unexpectedly pulled out of the merger… it created a funding shortfall” for NorthPoint. Company said it secured commitment for up to $38 million of debtor-in- possession financing from its existing lenders to continue day-to- day operations.

CNN announced broad personnel and operational changes Wed. to improve its newsgathering operations and streamline its global TV and Web services. Changes introduced by new senior management team are to: (1) Integrate Newsgathering Div., with journalists providing comprehensive reporting for all of CNN’s TV, radio, Web sites and ancillary services such as wireless devices and private networks. (2) Integrate TV channels and their respective Web sites such as CNN.com, CNN/SI, CNNfn, CNN International and CNN en Espanol under single management structure. (3) Introduce new technology to improve speed and efficiency of field reporting, editing and distribution. As result of changes, company will cut work force just under 10% (400 members of News Group staff) in coming weeks, company said; 1/3 of those positions are current CNN Interactive staff and another 1/3 from programming. After personnel and operational changes, CNN will remain among world’s largest news organizations with 3,900 employees, 1,000 of them devoted to newsgathering, company said. Among other initiatives announced: (1) Setting up a Newgathering “superdesk” in Atlanta to enhance cross-service/platform communication and allow for faster decision-making. (2) Combining domestic and international operations of Newsource, CNN’s affiliate news service.

Canada’s Copyright Board is moving forward on Internet Webcasting tariff that may give legitimacy to such sites as iCraveTV and JumpTV (CD Oct 27 p8, Sept 26 p2). Board Secy. Gen. Claude Majeau sent letter to parties calling for interim hearings March 12 on JumpTV’s application for Internet retransmission tariff. Participants have until end of this week to respond to timetable that calls for prehearing conference early in March, he said.

Telecom officials didn’t get answer from Bush Administration representatives Wed. to question who would be named FCC chmn., and when, we're told. Industry officials, primarily contributors to campaign, met with Bush transition office Wed. afternoon in what was described as “very generic and nonspecific” meeting. Most of attention focused on FCC reform, expediting agency decision-making and similar broad issues, we're told.

NCTA struck back at Consumer Electronics Retailer Coalition (CERC) late Tues. in continuing battle between cable and CE industries over DTV set labels. In 11-page filing with FCC, NCTA called again for Commission to reconsider its 3 proposed “Digital Cable Ready” labels for DTV receivers and instead adopt revised, more descriptive labels favored by cable industry. Accusing CERC of making “an unfortunate knee-jerk reaction to NCTA’s attempt to offer a constructive and pro-consumer labeling proposal,” cable group argued that CERC’s concerns about cable’s labeling proposals were “misplaced” because NCTA “merely has proposed more informative labels for the categories of DTV sets for which the FCC adopted labels.” NCTA also contended that CERC “is mixing apples and oranges” by confusing “the cable industry’s obligations under the navigation devices provisions of the Communications Act with the use of the term ‘cable ready’ in this proceeding.” Finally, NCTA said CERC “misrepresents” findings of cable’s focus group research indicating that consumers “reject the ‘Digital Cable Ready’ labels as inadequate and confusing descriptors of the DTV sets.” Group said CERC, which questioned findings and legitimacy of study, “offers no evidence to the contrary.”

FCC released 2000 biennial regulatory review Wed. that includes details on items that agency accepts for further review that were part of staff report released last fall. On wireless spectrum, review said agency accepted staff recommendation that spectrum caps that limited spectrum entity could hold in single market be considered. CTIA and several wireless carriers have been pressing agency to consider lifting spectrum cap on 45 MHz in all markets except rural areas, where cap is 55 MHz. Agency plans to consider notice of proposed rulemaking in “near future” that will consider “existing competitive conditions and technological developments that could affect the continued need for the cap.” Agency also accepted staff’s recommendation to consider excluding rural ILECs from requirement that independent (non-Bell) ILECs must offer long distance service through separate subsidiary. FCC said it would begin proceeding to seek comment on idea. In addition, it will ask whether it should consider waivers of that requirement for other independent ILECs that showed it created hardship for them. FCC Comr. Furchtgott-Roth said he was “heartened” by more detailed analysis in 2000 Biennial Review issued by agency Wed. Review includes staff report that analyzes regulations on “subpart-by-subpart” basis to determine whether they are needed, action that Furchtgott-Roth has championed in past. That level of detail offers “meaningful opportunity for debate about each section of our rules,” he said. He urged regulated companies to take active role in commenting on process that he said was “opportunity to keep our regulations consistent with marketplace and technological change.”

Paxson closed on purchase of 51% of KPPX (Ch. 51, Pax) Tolleson, Ariz. (Phoenix market) from Hector Salvatierra, broker Kalil reported. Paxson, which earlier had acquired 49% of station, paid $6.6 million for rest.

NBC revenue fell 11% to $1.55 billion in 4th quarter ended Dec. 31, but operating profit was up 10% to $476 million, parent GE reported. GE gave little explanation of changes, although it cited higher ratings for broadcast network, “tremendous ratings” for MSNBC during election period and 40% full-year profit growth for CNBC. For full year, NBC revenue was up 17% to $6.8 billion and operating profit up 14% to $1.7 billion.

Women hold smaller percentage of jobs in cable and DBS than year ago, while minorities hold more cable positions but fewer DBS jobs, FCC said in new report. Relying on annual employment reports submitted by cable operators, Commission found that total cable industry employment at companies with more than 5 employees had slipped to 130,953 in 1999 from 133,705 in 1998 and total female representation fell to 40.4% from 41.7%. Among full-time employees in upper-level posts, women held 26.9% of jobs in 1999, down from 28.9% year earlier. At same time, minorities boosted their representation in total cable work force to 32.7% from 30.9% and increased their share of upper-level jobs to 29.1% from 21.7%. Other multichannel video program distribution (MVPD) operators, consisting largely of DBS providers, nearly doubled their overall employee base to 10,322 in 1999, but total female representation fell to 43.2% from 52.7% and minorities to 27% from 27.7%. Among full-time employees in upper-level jobs, however, women increased their share to 33.6% from 32.2% and minorities to 22.9% from 16.9%.