The FCC late Friday approved purchase and privatization of Alltel by TPG Capital and Goldman Sachs Capital with a condition that concerned some commissioners. The order contains language capping Universal Service Fund payments to Alltel at 2007 levels, unless Alltel files cost data showing its per-line costs are less than the capped funding level or immediate compliance with the E-911 public safety answering point (PSAP) location accuracy standard.
No FCC members joined senior officials of other countries at World Radiocommunication Conference opening sessions, for the first time in many such events. One commissioner, Deborah Tate, who was already going to be in Europe at the end of next week, was tapped late Thursday by Chairman Kevin Martin to attend the meeting, but not the opening sessions. Martin didn’t immediately comment.
XM’s and Sirius’ history shows that the companies are in a unique, direct competition, but not with broadcast radio, the Carmel Group said in a new report paid for by the NAB. Carmel’s research said when one of the operators has made a strategic move, the other has soon followed, described as a “ping pong” effect. Whether satellite radio is a distinct market or part of a much larger audio market is a key question for the Department of Justice and the FCC to resolve as they examine the satellite merger.
An order drafted by FCC Chairman Kevin Martin would approve Alltel’s pending purchase and privatization by TPG Capital and Goldman Sachs Capital, but would cap Universal Service Fund payments to Alltel at 2007 levels. In what agency sources see as a surprising twist, the cap would come off only if Alltel can show immediate compliance with E-911 accuracy standards. Alltel called commissioner offices asking for a quick vote on the merger, though the order as circulated by Martin doesn’t invoke an abbreviated timeline. The Alltel order is expected to get approval. Officials from TPG Capital and Goldman Sachs had been pressing harder for a vote in recent weeks (CD Oct 22 p10). Martin also circulated an order that would approve AT&T’s acquisition of Dobson, also with a USF cap.
FCC Chairman Kevin Martin has circulated an order that would side with Iridium in its long-standing spectrum sharing dispute with Globalstar. The order would give Iridium virtually all of the spectrum that’s currently shared, except for a one-MHz section of spectrum they would continue to use jointly. At the same time, Martin put a request by Globalstar to use its entire spectrum allocation in the 2 GHz band for ancillary terrestrial component service out for comment. Globalstar is unhappy, sources said, because it wants an order that it give away the shared spectrum to be released concurrent with an order that provides it with the ability to use its 2 MHz spectrum for ATC. Paul Sinderbrand, counsel to the Wireless Communications Association, told us Wednesday his group remains concerned about protecting broadband radio service (BRS) channel one from interference. “WCA has consistently urged the Commission to assure that Globalstar’s ATC spectrum grab not jeopardize the ability of BRS channel 1 licensees to make full use of their spectrum for delivery of WiMAX and other advanced mobile services to subscribers,” Sinderbrand said. “We are cautiously optimistic that the Commission will propose retaining the current rule that limits ATC to the spectrum below 2493 MHz.”
CTIA is trying to head off an expected FCC order that Verizon Wireless must provide Neutral Tandem direct connection to its network (CD Oct 16 p4). Sprint Nextel also weighed in, warning against establishing broader policy through an order that resolves the long-standing Neutral Tandem-Verizon fight. Chairman Kevin Martin circulated an order, possibly for a vote at the Oct 31 agenda meeting, which led to the flurry of last minute meetings at the commission.
Council Tree, along with Bethel Native Corporation and the Minority Media and Telecommunications Council, asked the 3rd Circuit Court of Appeals in Philadelphia to force the FCC to rule on their petition for reconsideration on the rules for the advanced wireless services auction, which has been pending since April 2006. Council Tree, on its own, asked the court to review the rules FCC is putting in place for the 700 MHz auction, which are largely based on the AWS auction rules. The pleadings leave open the possibility the court could overturn the AWS auction and delay the 700 MHz auction, scheduled to begin Jan. 24.
Cisco announced Tuesday that it’s buying Navini Networks. The buyer calls the deal a vote of confidence that WiMAX will be important in providing wireless broadband. Cisco agreed to pay $330 million for privately held Navini, which makes WiMAX base stations, modems and antennas.
The fight over the XM-Sirius merger, playing out at the FCC, demonstrates the need for the FCC to develop some way of distinguishing whether comments filed are phony or real, Andrew Schwartzman, CEO of the Media Access Project, said Monday. Schwartzman, whose group opposes the merger, was one of several speakers during a debate sponsored by the D.C. Bar Association.
Alltel is turning up pressure on the FCC to approve its pending purchase and privatization by TPG Capital and Goldman Sachs Capital, sources said Friday. TPG Capital and Goldman Sachs recently brought in Kathleen Abernathy, former FCC commissioner, to help lobby the FCC. An Alltel regulatory filing said tender offers expire Nov. 13 unless they're extended. Alltel had little comment Friday during a brief conference call with analysts to unveil quarterly results.