Effectiveness of U.S.-Europe safe harbor agreement on Internet privacy is in question for telecom carriers because FCC hasn’t agreed to enforce U.S.-Europe privacy agreement, source in Commerce Dept. (DoC) told us. DoC is in talks with Commission in effort to bring it aboard safe harbor agreement, although some sources said European Union (EU) wouldn’t recognize FCC as legitimate enforcement agency. Telecom and common carriers can join safe harbor agreement, but only as it relates to functions outside realm of common carriers, sources said. Agreement reconciles strong European privacy rules with U.S.’s self- regulatory stance, guaranteeing that U.S. companies can do business in Europe.
NCTA called for entries for its 3rd annual “Community Spirit Awards” for local programming. Assn. said it also would host symposium for local and regional programming professionals in conjunction with awards March 27-28. Workshop will include sessions on current issues in local programming and advanced applications with technology. Deadline for entries is Jan. 19.
Qualcomm reached CDMA modem card license agreement with Korea’s Qualified Mobile Telecommunications (QMtel), terms not disclosed. Royalty-bearing deal allows QMtel to develop and manufacture CDMA and cdma2000 1xEV modem card products for use in wireless data devices, including personal digital assistants. QMtel said it also was developing CDMA products such as e-books.
Largest AT&T affiliate TeleCorp PCS said it added 145,231 customers in quarter ended Dec. 31. TeleCorp PCS was created last year after merger of TeleCorp Wireless, which added 95,656 subscribers in 4th quarter, and Tritel, which added 49,575. Combined entity had year-end subscriber base of 666,425. Tritel said it expected to take premerger one-time charge related to reductions in roaming revenue. TeleCorp PCS said that was likely to mean $4 million reduction in roaming revenue guidance for quarter for Tritel.
While CLEC industry is far from strong overall, upbeat news from McLeod and XO Communications shows CLECs with good management and business plans are persevering, analysts said Fri. McLeod announced bond offering and better-than-expected financial expectations Thurs. while XO announced Fri. it is selling $450 million of 5.75% convertible subordinated notes in private placement. Lehman Bros. analyst Daniel Zito said successful market transactions “should alleviate some pressure on the better names which have been cast away with everything else in the sector downdraft.” It shows “funding is still available at reasonable terms for the better management teams,” he said.
Bidding in FCC’s C- and F-block auction slowed Fri., but reached $13.07 billion, with Verizon Wireless maintaining wide lead of $5.52 billion in net high bids. Other top bidders include AT&T Wireless-backed Alaska Native Wireless with $2.75 billion and Cingular Wireless-backed Salmon PCS with $1.94 billion. AT&T Wireless doesn’t appear in list of top 15 bidders, and Cingular isn’t competing as standalone entity. In all, top 15 bidders now include 13 designated entities, most of which have links to larger carriers. While Verizon is by far highest bidder, $2.26 billion of its total is in bids for 2 N.Y.C. licenses at $1.17 billion and $1.1 billion. Alaska Native Wireless bid $758 million for 3rd license in that market. After 31 rounds, Verizon had highest bids on licenses in Washington, Boston, L.A., Chicago, San Francisco, Philadelphia. Alaska Native Wireless had high bids for spectrum in L.A. and Atlanta and Salmon PCS in Dallas license. Dobson Communications DCC PCS edged into upper echelon of bidders, placing 4th with $957.68 million, followed by VoiceStream with $540.12 million, affiliated Cook Inlet with $348.69 million, Leap Wireless with $293.47 million. Last week marked exit of several large carriers, including Sprint PCS and Alltel. Of 87 bidders who qualified at Dec. 12 start of auction, 49 remained as of late Fri. SVC BidCo, designated entity in which Sprint has 60% noncontrolling investment, still was in auction. Other bidders who have left auction include Nextel, Sprint affiliate Alamosa PCS, Nextel-affiliated designated entity Connectbid, Cincinnati Bell Wireless.
Month after postponing consideration of thorny DTV transition issues, FCC intends to tackle at least some DTV matters at its Jan. 11 open meeting. Well-placed sources said Commission was likely to approve bid by new DTV-only station to gain cable must- carry status and require consumer electronics manufacturers to put digital tuners in all new TV sets by date certain, among other less controversial items. But what’s not clear was whether agency would tackle core issue of whether cable operators and DBS providers should carry broadcasters’ analog and digital signals during current DTV transition. Action on dual-carriage issue, which has been hanging over federal regulators for more than 2 years, has been postponed repeatedly by Commission.
TMI Communications and EMS Technologies unveiled packet data terminal for U.S. transportation industry Jan. 3 after FCC approved modification in TMI’s license that allowed them to operate EMS PDT-100 packet data terminal in U.S. exclusively on TMI mobile satellite network. Firm said technology gives truck fleets tracking and messaging capabilities, doesn’t interfere with emergency communications services, reduces costs.
“Nothing would be gained by further delaying a decision” on core DTV must-carry issues, NAB Pres. Edward Fritts said in letter Thurs. to FCC in which he said Commission could defer decision on must-carry itself while adopting some “rules of the road” for carriage of DTV stations. He said there would be no benefit in delay, “certainly nothing that would be worth the harm to the progress of the transition.” NAB also pressed FCC for requirement that all new TV sets have tuner capable of receiving DTV.
Despite steep rise in Internet use, consumers remain devoted to watching TV, listening to music and even reading, according to latest home media study released by CTAM. Monthly telephone survey of 1,000 consumers found home Internet usage soaring to 58% of PC households in Dec., from 38% year earlier. It also found that more than 50% of U.S. homes now had at least one PC and 40% were online. In addition, study said, 31% of consumers now have TV sets and PCs in same room. But watching TV remains most popular way of spending leisure time, with 98% of consumers reporting that they view shows, equal to ratio in 1999 and up from 96% in 1998. Study said 36% of households now owned large-screen TVs (bigger than 35 inches), up from 22% in 1998. Consumers’ top expected purchases in 2001 are PCs (16%), DVD players (11%), CD players (11%).