LAS VEGAS -- FCC Comr. Powell endorsed free market vs. govt. regulation, pleasing consumer electronics officials at the CES here Sat. But reaction was more muted when he also indicated reluctance for govt. to move aggressively to spur DTV transition. Powell, who is widely rumored to become next chmn. of FCC, was interviewed one-on-one by CEA Pres. Gary Shapiro, also rumored to be candidate for position in new Bush Administration, despite recently signing new 10-year contract with CEA.
PASADENA -- Threatened strike against TV networks this spring by Writers Guild of America (WGA) and other unions (see separate item, this issue) was a major topic of conversation here as Pax TV, UPN and WB kicked off semiannual round of questions and answers with TV critics. “Everyone that’s involved on both sides says there’s going to be a strike,” WB CEO Jamie Kellner said. “I have no involvement whatsoever, so I say there’s not going to be a strike. I think there’s going to be a lot of reasons to avoid a strike.” He and UPN executives said they had contingency plans in place in case there was strike, including at least 4 “reality” programs under development by WB, plus advantage of being able to add movie night by using affiliate Turner Bcstg.’s huge library of films.
FCC Chmn. Kennard will announce his resignation as soon as Commission votes on AOL takeover of Time Warner, which is expected this week, Commission source told us. Kennard’s term expires in June but he was expected to leave once George Bush was sworn in as President Jan. 20. It will be up to Administration to decide whom to name as interim FCC chairman until permanent replacement for Kennard is appointed. FCC Comr. Powell is expected to be tapped but he hasn’t confirmed that. Source didn’t say when Kennard actually was leaving or reveal where he planned to work once he left. He moved to Commission from Verner, Liipfert, Bernhard, McPherson & Hand, where he was partner.
AT&T Wireless subsidiary Triton PCS said it added 84,811 customers in quarter ended Dec. 31 and for year subscriber base doubled to 446,401 from 1999. Triton said churn (customer turnover rate) dropped to 1.78% in quarter from 1.94% in 3rd quarter. Roaming min. in 4th quarter rose to 110 million from 56.6 million. Leap Wireless ended 2000 with 190,000 customers in 10 markets, adding 127,500 in quarter ended Dec. 31 and tripling subscriber base and exceeding year-end goals, Leap CEO Harvey White said. Leap plans to offer its Cricket wireless service in 35 markets by end of this year.
Astrolink signed $30 million contract with ViaSat to develop and manufacture service provider gateways for Astrolink system, companies said in joint statement. Contract includes development, integration and delivery of gateways supporting Astrolink’s service rollout in 2003. Viasat produces advanced digital satellite telecom and wireless signal processing equipment for commercial and govt. markets. Other products include information security devices, tactical communication radios, communication simulators. Astrolink is global broadband company owned by Liberty Media.
Walt Disney Internet Group said its enhanced-TV telecast of last Wed.’s FedEx Orange Bowl on ABC attracted 122,000 unique viewers to TV-Internet event. Viewers, who logged on to their PCs for specially synchronized Web content while watching football game on TV sets, spent average of 40 min. apiece on enhanced TV features, Disney said. Broadcaster said usage rose as much as 39% after each promo on ABC.
Bidding in FCC’s record-setting C- and F-block auction Mon. continued to move at more languorous pace, reaching $13.52 billion. AT&T Wireless became latest major carrier to quit bidding Mon. after 35 rounds, although carrier still was involved in auction through Alaska Native Wireless. AT&T has 39% equity in that designated entity but noncontrolling interest. Other carriers that already have departed include Alltel, Nextel, Sprint PCS. Verizon Wireless had somewhat smaller lead of $5.1 billion in net high bids. Cingular Wireless-backed Salmon PCS rose to 2nd place from 3rd with $2.92 billion, followed by Alaska Native Wireless with $2.49 billion. Momentum of auction has slowed, inching up from $13.07 billion in net high bids after 31 rounds Fri. Allegheny Communications also dropped out Mon. after its bidding eligibility reached zero. Designated entity drew attention in early Dec. when it made last-min. attempt to halt auction in U.S. Appeals Court, D.C. Court turned down Allegheny’s emergency motion for stay before Dec. 12 start of auction. Other top bidders now include VoiceStream with $802.1 million, Dobson Communications subsidiary DCC PCS with $735.3 million, Cook Inlet with $405.6 million, Leap Wireless with $327.3 million. Largest bid continued to be $1.17 billion that Verizon placed for one N.Y.C. license.
Sprint PCS said it now reaches more than 1 million wireless Web customers, which it said represented first time N. American carrier had hit that total. Sprint began service in Sept. 1999.
Genuity’s 4th quarter orders were down 17% compared with 3rd quarter, which company attributed to “general economic slowdown.” Genuity said its orders were up 88% compared with 4th quarter year ago. Most of drop was in carrier and ISP orders.
USTA Pres. Roy Neel, who has been on leave of absence to work in Vice President Gore’s campaign for President, won’t be returning to his post, Assn. announced Mon. Neel officially leaves USTA March 31 but will be working on special projects until then. Interim Pres. Gary Lytle will stay on to run USTA while search committee seeks permanent replacement. Neel, who had been at USTA 7 years, didn’t say what he planned to do.