CARLSBAD, Cal. -- NAB and MSTV decided there’s “insufficient evidence” to continue DTV transmission tests of 8-VSB and COFDM and said industry should stay with 8-VSB as standard. Action was taken here Mon. at joint meeting of NAB TV board, MSTV board and digital steering committees of both groups and following digital “summit” of TV broadcasters in Washington last week (CD Jan 12 p9). Straw vote of participants at Cal. meeting was 29-3 in favor of 8-VSB with dissents from Pax TV, Sinclair Bcstg., Pappas Telecasting. Only Dean Goodman of Pax TV dissented in following formal vote by NAB TV board.
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.”
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.
PASADENA -- TV programmers agreed with network officials that there would be one or more strike on production of programming this spring by one or more Hollywood guild, in presentations to TV critics here. Seven studio heads predicted strike, saying it was “inevitable” and would be “devastating.” If writers and/or actors go out, it would drive viewers away, cause “incalculable” loss of jobs and hurt quality of programming -- with reality shows, as planned by networks as substitute (CD Jan 11 p3) not acceptable alternative, producers said. Strike “seems inevitable because both positions are entrenched,” said Dana Walden of 20th Century Fox.
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.
Sprint announced Tues. it would sell $2 billion in global senior unsecured debt securities to refinance existing short-term debt.
House Telecom Subcommittee Democrats still were sorting out changes in their jurisdiction with Republicans’ decision to split consumer protection and telecom (CD Jan 12 p1), but they seemed not displeased when contacted Fri. “It’s a major change,” Rep. Boucher (D-Va.) told us of GOP’s action. “We've always had consumer protection within the Telecom Subcommittee.” He wouldn’t discuss which subcommittee he would gravitate toward, but conceded that he would be watching moves of Telecom Subcommittee ranking Democrat Markey (Mass.) carefully. Markey’s staff didn’t return calls by our deadline. If he leaves Telecom Subcommittee to be ranking Democrat on full Resources Committee, or if he chooses Consumer Protection panel, Boucher would be next in line for Telecom. If Markey stays, Boucher could be candidate to take ranking slot on Consumer Protection. “Markey’s always been interested in consumer protection issues,” one lobbyist said, and heads Congressional Privacy Caucus. Boucher said that even if he and other leaders on privacy chose Telecom panel, they would remain interested in privacy and still could be driving forces on privacy legislation. Democrats probably won’t organize their membership until later this month, perhaps as late as week of Jan. 30, Boucher said.
Latest DTV station on air is WTLV-DT (Ch. 12, NBC) Jacksonville, which carries DTV on Ch. 13. Station is 173rd to carry DTV, NAB said.
FCC Chmn. Kennard made it official Fri.: He’s leaving Commission Jan. 19 “with great pride in the accomplishments of the Commission” and “deep gratitude” for opportunity to serve, he said in resignation letter sent to President Clinton Fri. Kennard said that for “next few months” he will be senior fellow of Aspen Institute’s Communications and Society Program in Washington. He also will be first chairman of program’s new advisory board. However, his immediate plans are to “get some rest and spend some time with my 10-month-old,” he told reporters after news conference on AOL-Time Warner vote. He said he hadn’t decided what he would do after Aspen Institute. Asked if he wanted to stay in telecom policy, he responded: “Sure, I love it.” Asked to name his top 3 accomplishments, he listed (1) implementation of Telecom Act, (2) e-rate, (3) expanding telecom service to disabled community, native Americans, small and minority businesses. Ex- FCC Chmn. Reed Hundt said Kennard “has done more to include minorities and disadvantaged groups in the communications revolution than all previous FCC chairs combined.” NARUC Gen. Counsel Brad Ramsay said he “will hate to see him go” because Kennard made effort to include state regulators in development of issues. “He always made time to come to NARUC and discuss things one-on-one,” he said. Announcement of new chairman isn’t expected until after President-elect George Bush is sworn in Jan. 20.
Crown Castle International announced IPO of 12 million shares of common stock at $26.25 per share to raise $315 million. Company said offering was expected to close Jan. 17. Crown Castle said it planned to use proceeds for “general corporate purposes” such as capital spending and for acquiring shared communications infrastructure.