National Assn. of Minorities in Communications (NAMIC) Foundation partnered with eBay to raise funds through web site www.ebay.com/charity for its “Digital Bridge Alliance (DBA)” initiative. Telecom content and distribution companies can donate items to be auctioned at web site with proceeds benefitting initiative, NAMIC said. DBA initiative was launched this year by NAMIC to “raise awareness and reinforce the value of home computers and Internet access among African-American, Hispanic and Asian-American/Pan Pacific households.” Auction site featuring NAMIC’s charitable initiative was launched at recent Western Cable Show. Alliance has been endorsed by NCTA, Cal. Cable TV Assn., Walter Kaitz Foundation and National Assn. of Minority Media Executives, NAMIC said.
Cyclone-3 rocket carrying 6 Russian communications satellites failed after launch Thurs., resulting in loss of all 6 spacecraft. Spokesman for Strategic Missile Forces said first and 2nd stages of rocket functioned normally, but 3rd failed. Launch failure from Plesetsk cosmodrome in Russian Arctic is 2nd in 2 months for agency, as EarthWatch lost satellite in Nov. 21 launch on Cosmos-3 from Plesetsk (CD Nov. 24 p4). Satellites burned up after re- entry into atmosphere, scattering debris into Arctic Ocean, but officials said debris caused no damage. Russian Aerospace Agency suspended launches on Cyclone-3 rockets until agency can determine cause of failed launch, agency spokesman said. Similar failure nearly cost agency 6 Strela military satellites 2 years ago, but agency saved them.
Kan. Corp. Commission said its 2000 Lifeline public awareness campaign, which ran from June through Oct., was success. Agency said campaign boosted Lifeline enrollment with Southwestern Bell Telephone and Sprint/United by 50%. Program uses federal and state universal service resources to provide $10.50 discount on monthly local service charges.
NxGen and Touch America announced strategic partnership Fri. linking NxGen’s IP/ATM network with Touch America’s wireless and fiber-optic network. Companies plan to offer next-generation applications and services. Touch America is subsidiary of Montana Power Co.
Fla. PSC elected Leon Jacobs new chmn., effective Jan. 2, succeeding Terry Deason, who stays on as commissioner…. Fla. Gov. Jeb Bush (R) reappointed Comr. Lila Jaber to full 4-year PSC term; Jaber was named to PSC in Feb. to complete term of Julia Johnson… Iowa Utilities Board named Judi Cooper acting exec. secy., replacing retiring Raymond Vawter… Jay Walker stepped down as vice chmn., Priceline.com, after becoming CEO, Walker Digital… Arjun Valluri becomes sole CEO, Intelligroup after Ashok Pandey resigned as co-CEO and board member.
Motorola said Fri. it will unveil its iRadio satellite car radio system at Consumer Electronics Show at Las Vegas Convention Center this week. New car radio system is one of many digital radios that companies are planning to compete with XM and Sirius Satellite Radio for customers, industry officials said. IRadio, developed by Motorola Telematics Unit is expected to offer satellite services and interact with Internet through digital cellular networks which are primarily used for voice calls. Company is hoping to integrate iRadio with satellite navigation systems and emergency service products that are standard in many cars and trucks. CES is being used to showcase prototype with hopes of attracting manufacturer of car audio products, firm said. Motorola believes “right company” could have products ready for introduction to marketplace in one year, spokesman said.
R/L DBS Co., formerly Continental Satellite Corp., received 36-month extension from FCC Thurs. to start alternative DBS service that has struggled to get off ground during past 4 years. R/L argued in request for extension that legal haggling, FCC delays and changes in market had made it difficult to raise money to launch satellite and meet milestones. Company said it has invested $30 million in DBS business, including $14 million toward design and construction of satellite. EchoStar, which opposed Commission action, questioned whether $14 million payment “constituted significant effort” toward building $250 million satellite. EchoStar also said $15 million went toward acquisition of Continental stock by Loral and R/L DBS hasn’t made additional progress toward arranging remaining financing for satellite. Under terms of its construction permit, R/L DBS originally was required to be in operation by Aug. 15, 1999. Commission said additional time will allow company opportunity to implement “innovative, regionally targeted” DBS service.
Indicating more cautious approach to bad customer debt, Lucent nearly doubled funds it set aside for “doubtful” accounts in fiscal 2000, according to SEC filing. Lucent boosted reserve by 58% to $501 million in fiscal year that ended Sept. 30. Company, which had set aside $318 million in 1999, added $252 million to that this year. Despite extra cushion, Lucent wrote off only $69 million for bad debt, compared with $112 million in 1999. Heftier debt reserve is seen as way to make Lucent less vulnerable in future to uncollected bills and defaults by customers to which it has extended credit. Manufacturers such as Lucent extend fairly generous credit terms to new telecom companies such as CLECs to encourage them to buy equipment as they grow. However, in recent times CLECs have begun facing financial trouble, making manufacturers vulnerable to debt collection problems.
Covad Communications will trim additional 400 from its workforce, restructuring its Covad Business Solutions div. as part of previously-announced initiative to reduce this year’s operating costs by 20-30%. Costs of restructuring are included in estimated $20 million 4th quarter restructuring charge. Company “needed to consolidate and streamline operations to meet our drive to profitability goals,” said Covad Chmn. Chuck McMinn. Covad will also close about 200 central offices, affecting 1.5% of subscriber base. Staff reduction comes after Nov. 27 reduction of 400, another 14% of company’s headcount.
FCC would be taking “serious misstep” if it delegated reciprocal compensation and LEC-wireless interconnection decisions to state regulators, CTIA said in letter sent to Commission Fri. FCC has indicated it may take that route but “such a decision would be contrary to law” and would run counter to agency’s previous position in regulating commercial mobile radio service (CMRS), CTIA Gen. Counsel Michael Altschul wrote. “At issue is the fundamental question of the Commission’s jurisdiction -- over CMRS providers in general and LEC-CMRS interconnection specifically -- and its decision to abandon its regulatory responsibilities and delegate them to the various states,” letter said. “One certain fact has resulted from the extensive litigation surrounding the Commission’s implementation of the interconnection provisions found in the Act,” Altschul wrote: “The FCC has the sole authority to establish the terms of and to review LEC-CMRS interconnection agreements.”