SBC plans to cut about 13,000 jobs following its planned merger with AT&T, top officials with the companies said. Cuts include 1,700 jobs from the sales and 3,400 from business operations. The cuts would equal about 12% of their combined workforce. The companies had already announced a combined 12,000 in jobs losses prior to the merger. Observers said the job cuts could play a role in any fights over the merger in the affected states.
SBC’s merger with AT&T undoubtedly will require some divestitures, analysts and others predicted Mon. as the companies announced the $16 billion transaction. SBC Chmn. Edward Whitacre told the news media he didn’t expect regulators to order spinoffs but others say such action may be inevitable, with reviews expected by state regulators, the FCC, the Dept. of Justice and possibly international regulatory bodies. The merger will eventually gain antitrust and regulatory clearance “but could be subject to significant divestitures, particularly in SBC’s region,” Legg Mason predicted in a report Mon. Regulatory attorney Andrew Lipman said there’s a “high probability” of regulators requiring “spinoffs and surgery.”
The Commerce Dept. should reconsider cutting loose ICANN, Sen. Burns (R-Mont.) said in remarks on the Senate floor. In a statement supporting confirmation of Carlos Gutierrez as Commerce secy., Burns said ICANN is in danger of “mission creep” and has turned into a “mini-international organization.” ICANN’s last ties to the DoC are scheduled to expire in 2006. “The U.S. government has played a crucial and positive role in the creation of the Internet and in Internet governance, and I do not think that such a decision as this should be taken without thorough review and understanding of its implications,” Burns said.
NCTA picked as pres. industry outsider Kyle McSlarrow, a Bush Administration official with strong ties to the Senate -- a credential the NCTA board put high on its wish list when it began the search for Robert Sachs’ replacement 6 months ago.
NTIA experienced a “catastrophic failure” of its web server Mon. The U.S. Dept. of Commerce replaced its site with an outdated version. Officials said they couldn’t say by our deadline whether the failure resulted from outside interference.
The momentum for indecency legislation appears to be continuing in the 109th Congress, as several senators have agreed to co-sponsor a bill that would raise FCC fines for indecent TV and radio broadcasts, according to Sen. Brownback’s (R-Kan.) spokesman and another Senate source. Sens. McCain (R-Ariz.), Allen (R-Va.), Lieberman (D- Conn.), Hagel (R-Neb.), DeMint (R-S.C.), Graham (R-S.C.) and Santorum (R-Penn.) are planning to co-sponsor legislation from Brownback, who led last year’s efforts in the Senate to enact indecency legislation, the source said.
NTIA experienced a “catastrophic failure” of its web server Mon. The U.S. Dept. of Commerce replaced its site with an outdated version. Officials said they couldn’t say by our deadline whether the failure resulted from outside interference.
While it’s unlikely to have a Communications Subcommittee, the Senate Commerce Committee could create a “high tech” subcommittee based on the Senate Republican High Tech Task Force (HTTF), Committee Chmn. Stevens (R- Alaska) said. The committee is close to completing its subcommittee structure, said Stevens, who added that he’s consulted with all members of the committee except Sen. McCain (R-Ariz.), who was in line to chair the Communications Subcommittee that Stevens plans to eliminate. Stevens said he will conduct all communications-related hearings at the full committee level. Senate Commerce Committee ranking Democrat Inouye (D-Hawaii) already has consulted all Democrats on the panel about possible changes. Sen. Ensign (R-Nev.) is HTTF Chmn. and currently doesn’t have a Commerce Committee subcommittee assignment. Other HTTF members include: Sens. Allard (R-Co.), Allen (R-Va.), Bennett (R-Utah), Brownback (R-Kan.), Burns (R-Mont.), Bunning (R-Ky.), Hutchinson (R-Tex.), Crapo (R-Ida.), Smith (R-Ore.) and Sununu (R-N.H.). HTTF covers a wide range of issues. Its agenda includes accelerating broadband, maximizing spectrum use, reducing spam, protecting privacy, safeguarding copyright and protecting cyber security. Additionally, Stevens said the Commerce Committee would begin its work by trying to move to the floor bills that weren’t passed last year. He didn’t mention any specific telecom legislation, except for bills that would reauthorize the FCC, the Commerce Dept.’s Technology Administration and the Corp. for Public Bcstg.
While it’s unlikely to have a Communications Subcommittee, the Senate Commerce Committee could create a “high tech” subcommittee based on the Senate Republican High Tech Task Force (HTTF), Committee Chmn. Stevens (R- Alaska) said. The committee is close to completing its subcommittee structure, said Stevens, who added that he’s consulted with all members of the committee except Sen. McCain (R-Ariz.), who was in line to chair the Communications Subcommittee that Stevens plans to eliminate. Stevens said he will conduct all communications-related hearings at the full committee level. Senate Commerce Committee ranking Democrat Inouye (D-Hawaii) already has consulted all Democrats on the panel about possible changes. Sen. Ensign (R-Nev.) is HTTF Chmn. and currently doesn’t have a Commerce Committee subcommittee assignment. Other HTTF members include: Sens. Allard (R-Co.), Allen (R-Va.), Bennett (R-Utah), Brownback (R-Kan.), Burns (R-Mont.), Bunning (R-Ky.), Hutchinson (R-Tex.), Crapo (R-Ida.), Smith (R-Ore.) and Sununu (R-N.H.). HTTF covers a wide range of issues. Its agenda includes accelerating broadband, maximizing spectrum use, reducing spam, protecting privacy, safeguarding copyright and protecting cyber security. Additionally, Stevens said the Commerce Committee would begin its work by trying to move to the floor bills that weren’t passed last year. He didn’t mention any specific telecom legislation, except for bills that would reauthorize the FCC, the Commerce Dept.’s Technology Administration and the Corp. for Public Bcstg.
The immediate big issue confronting the White House with the pending departure of Chmn. Powell is who will be the next chairman. A few front runners were mentioned by several sources, most prominently Comr. Martin, former Tex. PUC Chmn. Becky Klein and NTIA Dir. Michael Gallagher. All 3 make little secret of their desire to head the FCC.