Satellite Bcstg. & Communications Assn. (SBCA) finished 1999 $127,000 in red after donations dipped and expenses rose slightly, according to 1999 Form 990 tax returns. Total revenue was $5.1 million, down from $5.3 million in 1999, but expenses edged up to $5.3 million from $5.28 million. Membership dues dipped to $2.1 million from $2.2 million, but still were over $1.6 million in 1998. Revenue from annual convention was $1.87 million, Sky Trends $350,000, Sky Forum $325,000. Pres. Charles Hewitt received $422,311 in salary plus $50,000 in benefits.
FCC is considering proposed rulemaking that would regulate interactive TV (ITV) services carried by all cable operators, knowledgeable sources confirmed Tues. Proposed regulations would be likely to ban all cable systems offering interactive services from blocking ITV triggers from rival content providers, similar to ITV conditions that FTC recently imposed on AOL’s pending purchase of Time Warner (TW). But sources said FCC rules could go further than FTC merger conditions, prohibiting cable operators from favoring their own content by caching it on local servers or sending it at higher data speeds than content from unaffiliated providers. “I'm sure they're talking about all sorts of things,” said source who declined to be identified.
Bill introduced for new session of N.J. legislature would make that state 13th with state-administered “No-Call” list to curb unwanted telemarketing calls. It will be assigned to Telecom & Utilities Committee. Under AB-3028, sponsored by N.J. state Rep. Linda Greenstein (D-Middlesex), state No-Call list would be maintained by Dept. of Consumer Affairs or by private vendor contracted to state. List would be updated quarterly. Telemarketers that called names on list would be liable for $2,000 fine per call. Money collected from fines would be used to educate public and telemarketers about No-Call list. Exceptions to rule would include calls (1) to existing customers or in connection with established business relationship, (2) in response to customer’s request, and (3) for purpose of making sales appointments. Bill also would require all N.J. phone directories to include notice about no-call list and signup instructions. To date, 9 states have put no-call list laws into effect -- Ala., Alaska, Ark., Conn., Fla., Ga., Ky., Ore., Tenn. In addition, Ida., Mo. and N.Y. will be putting no-call laws passed in their 2000 legislative sessions into effect by midyear.
Cablevision Systems reportedly has placed its Rainbow Media Holdings programming group up for sale after first planning to spin off unit as separate tracking stock. N.Y. Times said Cablevision, which had been considering move for weeks (CD Dec 22 p6), already had contacted USA Networks, NBC, Comcast and Liberty Media Group, 4 most likely suitors. Cablevision reportedly is seeking $5-$6 billion for Rainbow. Companies have until Jan. 16 to submit bids. Move came as UBS Warburg downgraded rating on Cablevision stock to buy from strong buy Tues. because Rainbow sale would “remove a major catalyst for the stock.”
AT&T Broadband said Tues. it would increase cable rates average of 4.8% across nation this year, starting next month. AT&T said biggest portion of cable customers, 63%, would see 4.3% price increase on its main analog package, known as Standard Cable. Another 11% of subscribers whose channel lineups have expanded by 3 channels or more will see increases averaging 6.55%. Company said some of its systems will boost equipment and installation prices, starting in Feb. AT&T blamed rate boosts on its higher technical upgrade and customer service costs, citing 10% increase in programming fees, especially for sports programming. Consumers Union blasted move and called for reopening of Telecom Act to place new lid on cable rates or promote more competition. “It’s becoming more and more difficult to just accept the industry blaming programming costs every time it jacks up cable rates,” group said. “AT&T’s rate increase is the latest example of how the deregulation of cable television isn’t working.”
GlobalNet CEO Robert Donahue told shareholders Tues. he was concerned that company’s stock was so low and he didn’t know why. “Our company has a market capitalization of less than half our projected revenues for calendar year 2000” and there’s no reason for it, he said in letter to shareholders. GlobalNet’s revenues have risen to $54.4 million for 9 months ending Sept. 30 from $792,000 in 1997 and it projected continued increase to $441 million in 2002, he said. Company provides international voice, data and Internet services over IP network.
FCC was poised at our deadline to release proposed frequencies that carriers could use for new 3rd-generation (3G) services. Agency source said Commission already had approved notice of proposed rulemaking but hadn’t released it. White House had asked FCC to make proposal by end of year. Item is expected to look at several potential bands including 2 in 1700-MHz and 2400-MHz that NTIA also is looking at as part of President Clinton’s 3G initiative. Clinton urged FCC and NTIA to work with wireless industry to select frequencies as quickly as possible so U.S. wouldn’t lose its edge.
AT&T announced Tues. it had secured $25 billion syndicated bank credit line to provide liquidity against comparable level of short-term borrowing. It said it had no current plans to borrow against facility that’s to serve “principally as a backup source of liquidity.” Company in Oct. had announced plan to arrange credit line when it revealed its restructuring project. AT&T said it had more than enough offers -- 39 banks were willing to lend total of $40 billion. The 364-day credit line was arranged by Credit Suisse First Boston and Goldman, Sachs.
National Exchange Carrier Assn. (NECA) files revisions in its average schedule formulas that will result in combined increase of 2.49% in common line and traffic-sensitive settlements. Those “settlements” are like interstate access charges for small rate- of-return carriers that don’t conduct their own cost studies. NECA said new formulas would go into effect July 1 if FCC approved them.
VSB/COFDM report sent to key broadcasters late Fri. included “some good news and some bad news” for both DTV modulation systems, we're told. Reports, based on field testing completed in mid-Dec., were said to have been adopted unanimously by technical groups, which include VSB critic Sinclair Bcst. “I think it was pretty well balanced,” one official familiar with report said. He discounted claim that report strongly supports VSB (CD Dec 29 p4). Technical groups preparing report have kept tight lid on results, with even steering committee members generally not told in advance, we're told. In letter of appreciation to technical group members, Project Chmn. Gary Chapman of LIN TV and Vice Chmn. Craig Dubow of Gannett said they're “confident that the process was inclusive, fair and scientifically sound,” but they admitted that “even these most comprehensive and authoritative tests cannot fully resolve all issues. Opinions may differ as to the precise implications of the data.” Steering Committee is to meet Jan. 10 to discuss results and submit reports to MSTV board. Then, series of meetings will lead up to joint session of NAB and MSTV boards Jan. 15 in Carlsbad, Cal. Broadcasters spent $2.1 million on testing of competing DTV modulation schemes, following what they acknowledged to be “stalemate” as result of dispute over benefits of each system. TV group CEO told us “the direction we take will be charted” at industry summit of station executives in Washington Jan. 11. But, he said, unless study shows COFDM with “an overwhelming preference” industry should proceed with VSB. Then, he said, “we will need to press the FCC very, very hard” for such things as digital must carry and TV networks for more digital programming.