Sweden’s Telia, which is battling govt. decision not to award it 3rd-generation wireless license, unveiled plan Mon. to create 50-50 joint venture with Tele2, subsidiary of NetCom. Tele2 received one of four 3G license from Sweden’s National Post & Telecommunications Agency (PTS). It said venture will build next- generation mobile network. Agreement gives Telia “equal access” to 3G license that Tele2 has received. “The risk related to the UMTS (Universal Mobile Telecommunications System) investment is radically reduced through this joint venture,” NetCom CEO Lars- Johan Jarnheimer said. Companies said they were considering similar venture in Norway. Agreement with Tele2 will remain valid regardless of outcome of Telia’s appeal with PTS, companies said. Telia is asking country’s courts to suspend PTS decision, citing what it charged were problems in process of awarding spectrum (CD Jan 8 p6).
Cingular Wireless and CWA finalized 4-year contract that covers more than 2,100 workers in Ill., Mass., N.Y. and Md. and includes 15.3% pay increase over life of accord. CWA said negotiation was first with Cingular, which includes merged wireless arms of BellSouth and SBC. Agreement provides for card check recognition, which allows company to recognize union when majority of employees sign cards saying they want representation. System already exists for wireless workers in SBC territory but hadn’t been for larger Cingular entity. Agreement also creates first pay progression system at Cingular, from entry to top levels, CWA spokeswoman said. While deal covers wage increase, most workers will receive additional boosts under progression plan. Contract creates grievance, mediation and arbitration procedure and keeps existing retirement, health care and education benefits, CWA said. Union now represents 10,000 Cingular employees. Agreement with Cingular came after SBC and CWA late last month broke off negotiations for contract renewal covering Southwestern Bell, Pacific Bell/Nevada Bell, Ameritech and Southern New England Telephone. Contracts don’t expire until April 1 but company and union had hoped to wrap up talks before Dec. holidays.
New technology may allow engineers at NASA’s Goddard Space Flight Center in Greenbelt, Md., to stay home and do their jobs. Service provided by eTrue may allow engineers to use biometric authentication to log on from off-site computers or repair unmanned space craft. After test project is completed within year, NASA will test 3 other biometric products and select one to implement in 2 years.
Rep. Oxley (R-O.) may have lost his bid to lead Commerce Committee, but he still could have influence on telecom policy. He introduced bill (HR-235) to require FCC to eliminate its restrictions on newspaper-broadcast cross-ownership. Meanwhile, Rep. King (R-N.Y.) offered bill that would authorize FTC to issue new regulations on telemarketers. He has 9 initial co-sponsors, including Oxley. Also, two more lawmakers quickly brought back bills from last year: (1) Rep. Portman (R-O.) reintroduced his bill to repeal 3% telephone excise tax (now HR-236), with 30 initial co-sponsors. Bill passed House by 420-2 vote last year but never got vote in Senate. It then was folded into appropriations legislation that was vetoed by President Clinton. Bill again will go through Ways & Means Committee. It’s expected to get more favorable reception from incoming President Bush. (2) Rep. Holt (D-N.J.) reintroduced his measure (now HR-113) to prevent spamming on wireless devices. Introduced late in last session, Holt’s bill never got serious consideration.
France Telecom plans to float up to 15% of shares of Orange PLC, its subsidiary European wireless carrier, in London and Paris. Share price will value Orange at 70-80 billion euros. Further 5% will be available to investors in convertible bonds, exchangeable for Orange shares at up to 1/3 above price. Prospectus will be published at end of Jan. Flotation comes after mobile phone sector racked up debt in recent 3G license auctions.
U.S. Navy has authorized Boeing Satellite Systems to begin production of 11th in series of UHF Follow-On (UFO) satellites, which provide global communications for armed forces. UFO F-11 will carry UHF payload for narrowband 2-way battlefield connectivity and EHF payload. Subsystem provides enhanced antijam telemetry, command, broadcast and fleet interconnectivity communications, using advanced signal processing techniques.
Ericsson will upgrade network of Ukraine’s Kyivstar to General Packet Radio Service (GPRS) under $100 million contract. Companies said that marked first GPRS agreement in Ukraine. Contract includes addition of GSM 1800 MHz for dual-band capacity and GPRS/GSM core and radio access infrastructure that will allow wireless Web access. Ericsson said wireless Internet services were expected to be in operation in 2nd half of year.
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.
Verizon met or exceeded “key operating targets” for 4th quarter and full-year 2000, CEO Ivan Seidenberg said Mon. at Salomon Smith Barney conference in Scottsdale, Ariz. Among them: (1) Company ended year with about 540,000 DSL subscribers, exceeding 500,000 target. (2) It had 1.4 million long distance customers in N.Y. at year’s end, gaining 20% share of state’s residential long distance market. (3) Verizon Wireless had net gain of about 1.2 million new customers in quarter and ended year with about 27.5 million. He also announced that Verizon had $535 million in merger-related expense savings in 2000 following formation of Verizon Wireless and Bell Atlantic-GTE merger.
AT&T named Oscar Munoz, ex-Qwest senior vp, as vp-CFO of its new consumer unit…. Va. Corp. Commission named Steven Bradley, ex-Verizon sales exec., as dir. of Communications Div., replacing retiring Alan Wickham… Janet Cooper, ex-Qwest Communications, named CFO-senior vp-finance & administration, McData… Dipesh Shah, ex-Lucent Labs, appointed vp-engineering, U.S. Wireless… Robert Perry, ex-Webhire, named senior research analyst-Internet Computing Strategies Planning Service, Yankee Group… David Marvento, legislative dir. for Rep. Tauzin (R-La.), will follow him to House Commerce Committee as staff dir… Paul McGuire resigns as UPN senior vp-communications to become Disney media consultant… Patrick Scannell, ex-Silknet, appointed CFO, PhotonEx… Promotions at USA Affiliate Distribution: Douglas Holloway to pres.-network distribution & affiliate relations, Peter Ruben to exec. vp-affiliate relations,Tom Smith to senior vp-eastern division, Mark Bienstock to senior vp-business affairs & gen. counsel… Andrew Fisher promoted to pres., Cox TV… Traver Gruen-Kennedy, chief strategist at Citrix Systems and chmn., ASP Industry Consortium, appointed pres., Tech. Forum of S. Florida… Alain Briancon, ex-Motorola, named exec. vp-chief technology officer, InterDigital… Oscar Munoz, ex-Qwest, appointed vp-CFO, AT&T Consumer… Appointments to PrivacyRight Board of Advisers: Ray Everett-Church, founder of PrivacyClue LLC; Michelle Kraus, founder of MagicMaker… Paul Yazge, ex- Zaffire, named vp-sales & mktg., Codeon… Jonathan Chauvin-Blitt, ex-Allied Global, appointed pres., Americas, ITT Industries, Network Systems & Services… Robert Allen promoted to vp- accounting & financial reporting, Regent Communications… David Brown, chmn. of U.K. subsidiary Motorola Ltd., awarded knighthood… Don Cameron, former exec. dir., National Education Assn. and founding partner of CEO Forum on Education & Technology, awarded Presidential Citizen’s Medal… Scott Dinsdale, ex- FirstLook, appointed exec. vp-Digital Strategy, MPAA.