Motorola plans to stop cellphone manufacturing operations at its Harvard, Ill., plant, resulting in loss of 2,500 jobs from company’s total work force of 130,000. Motorola, which issued series of earnings warnings late last year, said move was part of its strategy to consolidate manufacturing and bolster financial performance. Harvard campus, which will continue to have 2,500 employees, will focus on order fulfillment and new product sourcing. “We cannot competitively manufacture products when there is surplus global capacity at Motorola’s lower cost sites,” Motorola PCS Pres. Mike Zafirovski said. Company said it planned to halt manufacturing at Ill. site by June 30.
Minority ownership of commercial TV and radio stations increased 0.9% overall over last 2 years, but minorities’ share of TV market actually declined in 2000, NTIA said in report released by Commerce Secy. Norman Mineta Tues. “Unfortunately,” this was increase “that we must attribute mostly to an industrywide economic boom and an improved reporting methodology,” Mineta said, and “clearly there is reason for concern.” NTIA survey showed that consolidation in industry threatened survival of minority and single-station owners, he said.
Several communications companies and associations donated maximum $100,000 to incoming President Bush’s Inaugural Committee, according to lists released by committee. Limit, imposed by Bush, far exceeds $1,000 legal cap on contributions to last year’s Presidential campaign. Jan. 20 Inaugural is expected to cost more than $20 million. Among those giving maximum: AOL, AT&T, CTIA, NBC parent GE, broadcaster Tom Hicks, Microsoft, Net2Phone, SBC.
FCC’s C- and F-block auction hit $16.07 billion Tues., with Verizon Wireless now accounting for more than half of bids with $8.38 billion. Aggressive bidding for N.Y.C. spectrum flirted with $2 billion mark, with Verizon submitting separate bids of $1.8 billion for 2 licenses there and Cingular Wireless-backed Salmon PCS $1.2 billion for 3rd. Salmon PCS, in which Cingular has 85%, noncontrolling stake, bid $3.1 billion, followed by AT&T Wireless-backed Alaska Native Wireless with $1.3 billion, DCC PCS with $960.8 million and VoiceStream with $960.8 million. Bidding for 422 PCS licenses began Dec. 12 and completed 55th round Tues. Bidding for N.Y.C. licenses so far has outstripped that for next largest wireless market of L.A., where Verizon and DCC PCS have bid closer to $515 million.
Tom Paro, 77, pres. of MSTV 1979-1988, died Jan. 11 at Suburban Hospital near Washington, D.C., of Parkinson’s disease and pneumonia. Before his stint at MSTV, Paro was an NBC vp and gen. mgr. of WRC-TV Washington. Survivors include his wife, 3 children, 2 stepchildren, brother, 8 grandchildren.
Research firm Telephia said survey found 18% of wireless customers switched carriers in last year, not counting 10% of subscribers who dropped service altogether. Telephia surveyed 24,000 wireless voice subscribers in 28 markets. It said 44% of survey respondents indicated they planned to drop their current service in next year.
Although she hasn’t formally announced her resignation, FCC Cable Bureau Chief Deborah Lathen confirmed she planned to leave Commission soon after its new Republican chairman took over. Lathen, who has run Cable Bureau since spring 1998 and presided over further deregulation of cable industry, told us Fri. that she hadn’t decided on departure date but “will ensure a smooth transition” to next bureau chief. She said she also hadn’t decided what she would do next. At Western Cable Show in L.A. in late Nov., Lathen said her plan was to complete AOL- Time Warner merger review and then “wiggle my toes in the sand.” She brushed off questions about her legacy, saying she wasn’t focusing on that and considered it “the height of arrogance” to spin others about one’s record of accomplishments. “The way you live your life is your legacy,” she said. “Everyone in Washington is always talking about their legacies… I've tried to have broader aspirations.”
Sprint announced Tues. it would sell $2 billion in global senior unsecured debt securities to refinance existing short-term debt.
AOL Time Warner, having completed its merger late Thurs. night following FCC’s approval, announced its new 16-member board. Company said new board -- 8 members each from AOL’s and Time Warner’s old 11- member boards -- would meet for first time later this week. New board consists of: (1) XO Communications Chmn.-CEO Daniel Akerson. (2) Barksdale Group partner James Barksdale. (3) Hilton Hotels Pres.-CEO Stephen Bollenbach. (4) AOL Time Warner Chmn. Steve Case. (5) Kleiner, Perkins, Caufield & Byers partner Frank Caufield. (6) CGLS Fund partner Miles Gilburne. (7) Hills & Co. Chmn.-CEO Carla Hills. (8) AOL Time Warner CEO Gerald Levin. (9) Colgate-Palmolive Chmn.-CEO Reuben Mark. (10) Former Philip Morris Chmn.-CEO Michael Miles. (11) AOL Time Warner Vice Chmn. Kenneth Novack. (12) AOL Time Warner Co-COO Richard Parsons. (13) AOL Time Warner Co-COO Robert Pittman. (14) Fannie Mae Chmn.-CEO Franklin Raines. (15) AOL Time Warner Vice Chmn. Ted Turner. (16) Vincent Enterprises Chmn. Francis Vincent. In one interesting footnote to FCC’s approval of takeover, consumer groups that had fought for strong regulatory conditions on deal ended up urging Commission to okay it even though they and other critics didn’t gain interoperability of AOL’s current instant messaging (IM) services. New ex parte filing from last week reveals that Media Access Project’s Andrew Schwartzman and Consumers Union’s Gene Kimmelman pressed Comr. Tristani, last holdout in IM fight, to vote for approval because agency had won as much as it could. Despite their strong support for “full interoperability of instant messaging services,” Schwartzman and Kimmelman said, “the net value of the relief the Commission could provide to consumers and the public from a properly crafted decision justified acceptance of an order which did not provide full interoperability.” Sources said consumer advocates also probably feared what might happen if merger review lingered beyond Democratic Chmn. Kennard’s tenure, which will end Fri.
NAB, which hasn’t presented its “Spirit Of Broadcasting Award” since 1995, will present 2 at April convention in Las Vegas. One will go to Margita White, retiring pres. of Maximum Service TV and former FCC commissioner, 2nd to American Women in Radio & TV. Previous winners include ex-President Ronald Reagan and former FCC Comr. James Quello.