FCC ordered GE Americom Thurs. to disclose information to Pegasus Development on its contract with Harris Corp. involving construction of GE Star Ka-band satellite system. Pegasus requested information Oct. 13. GE Americom received license to launch and operate 5 satellites in fixed-satellite service (FSS) in Ka-band. It was required to begin construction of first bird by May 1998, but had asked that contract be exempt from Freedom of Information Act disclosure requirements and withheld from public inspection. Pegasus, which wants to launch its own Ka-band satellites, objected.
FCC Chmn. Powell appointed Marsha MacBride chief of staff, and named his core transition team and his personal staff. MacBride, 10-year veteran of FCC, is returning to Commission after being vp at Disney’s Washington office. During years at FCC, MacBride has been Legal Advisor to then-Comr. Powell for mass media and cable and exec. dir. for FCC’s Y2K conversion effort. MacBride has been in Political Programming Branch of Mass Media Bureau, Cable Bureau, and Office of Engineering and Technology. She was also Legal Advisor to Comr. James Quello in 1997. Transition team includes Jane Mago, Enforcement Bureau, who will oversee the Office of Gen. Counsel, David Fiske, who will oversee Office of Media Relations, Paul Jackson, special asst. to chmn., who will oversee Office of Legislative and Inter-governmental Affairs. Powell’s current personal staff will move to Chairman’s Office -- Peter Tenhula continuing as senior legal advisor, Kyle Dixon and Susan Eid as legal advisors, Toni McGowan as confidential assistant and Dorothy Clingman as senior staff asst. Other staff appointed to Chairman’s Office include: Tommi Greely, Betty Freeman and Kim Anderson-Collins.
AT&T is seeking FCC permission to discuss sale of MSO’s minority stakes in several cable networks, including E! Entertainment, Digital Cable Radio, Sunshine Network, New England Cable News, In Demand, Fox Sports New England, National Cable Communications, Food Network. Spokeswoman for AT&T said move was part of company’s drive to cut its debt load and improve its prospects on Wall St. In Jan. 10 ex parte filing with Commission, AT&T, which inherited those programming interests from MediaOne, said it sought govt. approval to shed stakes because it “could be required to advise, or obtain permission from, its current partners in these services.” In addition, company said, “a potential purchaser could be AT&T’s current partners in these services.” AT&T promised it “would not be involved in discussions directly relating to the video programming activities of these entities,” as FCC stipulated in approving MSO’s purchase of MediaOne last year. AT&T previously gained Commission approval to sell its inherited stakes in Speedvision and Outdoor Life networks.
E-rate supporters are preparing concerted opposition to provision in President Bush’s education reform package that would roll e-rate into larger technology plan and potentially alter its funding structure. Program to subsidize school and library Internet connections currently is funded at $2.4 billion annually through surcharges on long distance bills, called “Gore tax” by its detractors since former Vice President pushed hard for its inclusion in Telecom Act and for program to be funded at high level by FCC. Moving program into Education Dept. and requiring annual appropriations “would be a major step backwards, and I will fight it aggressively,” Sen. Rockefeller (D-W.Va.) said. “It would utterly change the program,” said spokesman for Sen. Snowe (R-Me.).
LAS VEGAS -- Programming for children under FCC’s 3-hour mandate is “a terrible financial business for broadcasters… and we don’t think the government should tell us to run 3 hours of kids programming,” Madelyn Bonnot of Emmis Communications told NATPE panel here on “Kid-Friendly TV.” With exception of Tom Lynch of program company bearing his name, other panelists seemed to agree with Bonnot. “We have to be in there [kid programming],” Lynch said. “It’s a public service. They're public airwaves.” All that’s needed, he said, is a hit children’s show.
Verizon Senior Vp Thomas Tauke told reporters Thurs. that company was seeking lobbying support from cable industry for new deregulated form of broadband policy that both telcos and cable could live with. He emphasized that no formal coalition had been formed, although 2 sides have had “discussions.” Tauke said he envisioned 3rd “basket” of regulations, separate from traditional cable and telephony models, that would apply only to broadband services. Under that scenario, broadband networks would be lightly regulated, along wireless telephony model, he said.
Rural Telecommunications Group (RTG) “adamantly” objected to request by Verizon Wireless to postpone start of 700 MHz auction scheduled for March 6. RTG argued carrier hadn’t provided FCC with “extraordinary or unforeseen reason to postpone” auction by at least 2 months, or ideally until Sept. 6. “The Commission should not establish auction deadlines that comport with the business plans of any private company; and, stripped to its essence, Verizon urges the Commission to delay the 700 MHz auction merely for Verizon’s business convenience,” RTG told agency.
LAS VEGAS -- It’s “increasingly likely” that NAACP will start boycott soon against one of Big 4 TV networks (unnamed) and its advertisers because of what Assn. Pres. Kweisi Mfume called networks’ “snail’s pace” in their diversity efforts after they all signed agreements last year to increase those efforts (CD Jan 10/00 p1). At appearance before NATPE convention here Mon. afternoon, he also called for return of financial syndication (finsyn) rule that prohibited networks from having financial interests in syndicating programming, and for legislation requiring networks to air 3 hours weekly of programs written, starring and produced by minorities. As justification for latter, he cited FCC’s 3-hour kid TV rule.
Qwest Communications reported strong results Wed. including 10% rise in revenue to $5 billion for 4th quarter that ended Dec. 31, with Internet and data services revenue growing almost 40%. Net income excluding one-time charges increased 44% to $270 million (16 cents per share), 2 cents higher than Wall St. expected. Qwest CEO Joseph Nacchio said he also was happy with “trend lines” that indicated company would meet future goals. “We spent capital in the right places” such as improved local exchange phone service in old U S West territory, he said. U S West is “no longer the worst operating telephone company in the country,” Nacchio said. “We put improved customer service on top of our priorities, we put capital there and we're seeing results.” Qwest’s results reflected some savings through synergies from merger with U S West but “most synergies will be ahead” in 2001, he said. In earnings conference call, Nacchio touched on company’s Sec. 271 strategy. He said he was heartened by FCC’s recent approval of SBC’s “multiple-state” application for Sec. 271 authority in Okla. and Kan. because Qwest also plans to file multiple applications once it gets started. With joint testing under way in 13 of its 14 states “you can expect multiple applications.” Nacchio said Qwest “probably will be the last to get the first state but the first to get the last state” approved by FCC. He said his first state probably would be Colo.
FCC issued call for comments Wed. on use of unbundled network elements (UNEs) to provide exchange access service. Agency said it wanted more information to help it determine whether ILECs should make combinations of UNEs available to other carriers that wanted to use them instead of tariffed access service. Agency said last year it planned to seek comment in early 2001. Among questions: “Is the exchange access market economically and technically distinct from the local exchange market” and if so “are requesting carriers impaired in their ability to provide special access services without access to loop-transport combinations.” Comments are due 30 days after notice is published in Federal Register. (CC Doc. 96-98).