Coalition of private wireless operators on Mon. backed Cingular Wireless plan for 800 MHz rebanding that would move public safety operators to 700 MHz. But in face of “political” challenges expected to beset proposal, including required legislative changes, private wireless licensees called their alternative “repacking” 800 MHz band at cost of $1.2 billion, compared with $2.7 billion of original Nextel proposal, officials said Mon. FCC filing deadline closed Mon. on notice of proposed rulemaking (NPRM) soliciting comments on alternatives for alleviating public safety interference at 800 MHz. Among plans on which Commission sought feedback was proposal submitted by Nextel last fall that would swap 4 MHz of guardband spectrum at 700 MHz, 8 MHz of specialized mobile radio spectrum in lower channels of 800 MHz and 4 MHz of SMR spectrum at 900 MHz. Under that plan, Nextel would receive another 16 MHz at 800 MHz and from reserve mobile satellite services spectrum. One theme running throughout comments was thorny issue of who would pay cost of relocating incumbents. “There’s an issue of can anybody really afford to do this,” Washington attorney Robert Schwaninger said at Mon. news conference of private wireless operators.
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Neil Bush, President Bush’s brother, visited NCTA convention Sun. to pitch his newest business scheme to cable operators. Speaking at early convention session, Bush, chmn.-CEO of Ignite, said his new company would introduce online, educational “courseware” in fall that would offer multimedia versions of middle-school textbooks. Designed to fully complement, not compete with, school curricula, Ignite’s customized courseware will cost $30 per child per subject. Bush, who raised $18 million in private capital to launch his company, plans to start with American history in fall, then expand course offerings to earth, life and physical sciences. Describing himself as “kind of a Pollyannic type of guy,” Bush said his online, multimedia textbooks would help teachers reach and motivate their students. “Our teachers are still using screwdrivers and sledgehammers,” he said. President’s brother urged cable to back his efforts by installing more high-speed data connections to schools and homes and supporting development of software and applications to fill broadband pipeline. “I think the cable industry has a huge potential role,” he said: “Build out the cable modem thing” and promote use of applications. Bush, who said he started Ignite for healthy mix of social responsibility and profit motives, projected that company “won’t be profitable for 3 years” and “won’t be dominant for 5 years.” He decried schools’ increasing reliance on standardized testing and assessments, even though his brother has been strong advocate of both, because he believes they favor memorization ability over thinking skills. But he said he wouldn’t press that case with President. “I made a point of not lobbying him,” Bush said. “He’s got his people.” -- AB
House by 280-141 margin approved farm bill conference report that would provide $100 million in rural broadband loans and loan guarantees from 2002 to 2007. Total of $100 million for broadband infrastructure deployment was proposed for distribution each year. Under conference compromise, Secy. of Agriculture would distribute: (1) $20 million for each of fiscal years 2002 through 2005. (2) $10 million for each of FY 2006 and FY 2007. Communities eligible for the funds must have 20,000 or fewer residents. Priority would be given to eligible areas where broadband currently wasn’t available, although regardless of availability, entities already controlling more than 2% of U.S. phone subscriber lines wouldn’t be eligible. State and local govts. could get grants if “no other eligible entity is already offering, or has committed to offer, broadband services” in their respective jurisdictions. Eligibility criteria developed by Agriculture must be technologically neutral. Conference report also would order Secy. to, “from time to time as advances in technology warrant, review and recommend modifications of rate-of-data transmissions criteria for purposes of the identification of broadband technologies.” It also would provide $80 million in rural local TV broadcast signal loans. House proposal originally had proposed using part of funds to deploy 2 satellites to bolster rural availability of local TV signals, but that provision was dropped in final compromise. Measure also would provide $30 million annually through 2007 for rural telework initiatives, including $5 million to create and support Rural Telework Institute.
NCTA told FCC in its 3rd progress report on compatibility between cable systems and consumer electronics equipment that “significant progress” was being made on technical specifications in 3 areas agency originally asked about: (1) Unidirectional receiver capable of direct connection to cable system. (2) Receiver that also could support advanced and interactive services. (3) Bi- directional receiver that could do all of above. NCTA said it and CEA had negotiated and agreed to specifications for analog TV and DTV programs transmitted in clear and use of security module supplied by cable operator that would allow pay-per-view and subscription programming to be unscrambled. Report didn’t address CEA complaints that cable operators hadn’t set timetable for implementing standards or resolved CE manufacturers’ problems with Point of Deployment-Host Interface License Agreement (PHILA). Main sticking point on PHILA is that CEA feels it allows cable operators undue control over content and would violate consumers’ home recording rights. NCTA Gen. Counsel Neal Goldberg said that issue wasn’t addressed in progress report because that wasn’t what FCC had asked about in its report and order. “It sounds like their filing addresses a much broader set of issues,” Goldberg said. Nevertheless, he said, cable operators want “tools, not rules” on content and want to negotiate best, most liberal deal possible on home recording of programs because that would most satisfy cable subscribers. However, copy protection tools must be in place, he said, because otherwise program providers wouldn’t negotiate with cable, and cable wanted to compete with DBS operators, which already had such licensing provisions in place. Goldberg said document wasn’t meant to be status report on whole DTV transition, but instead was on finite subject matter. Still, he said he was optimistic that NCTA and CEA were moving toward resolution on those other outstanding issues. CEA, in its response, took note of fact that only 3 manufacturers -- Motorola, Scientific-Atlanta and Pace Micro Technology, which already were working with cable -- had signed PHILA. CEA spokesman also said NCTA was asking CE manufacturers to simply trust that cable operators would use copyright tools appropriately. “We need to have some assurances,” he said.
Citing Nielsen figures, TV Bureau of Advertising said 99 of top-rated TV programs were on free TV in March, with only one originating on cable network: WWF Entertainment, which tied for 88th with 3.9 rating.
House Commerce Committee is holding markup today (Thurs.) on legislation (HR-4560) by Chmn. Tauzin (R-La.) that would delay indefinitely 700 MHz auctions now planned for June 19. Markup is 10:30 a.m., Rm. 2123, Rayburn Bldg., change from original 1:30 p.m.
TiVo and AOL Time Warner scrapped plans for combo AOLTV/personal video recorder (PVR) and instead will focus on having AOL features such as instant messaging and live chat available on former’s new platform, TiVo spokeswoman said. TiVo said earlier this year that combo product, plans for which were unveiled 2 years ago, wouldn’t be available before 4th quarter and wouldn’t be deployed as “originally envisioned.” Under new agreement, AOL features will be available as service of, but not designed into, TiVo’s Series2 PVR platform that was unveiled at CES in Jan. TiVo has similar pact with RealNetworks for its RealPlayer. TiVo said it would return $48 million to AOL that had been set aside in interest-bearing escrow account to fund launch of AOLTV/TiVo PVR product. In exchange, AOL will give back 1.6 million shares of convertible preferred stock to TiVo that was part of its original $200 million investment made in Sept. 2000 that included escrowed funds.
IDT Winstar and Bell companies exchanged fire at FCC this week over terms of interconnection agreements to which RBOCs must be held for fixed wireless provider that has emerged from Chapter 11 protection. Last month, IDT completed acquisition of remaining stake in Winstar, giving it 100% ownership of company that filed for bankruptcy year ago. IDT Winstar filed emergency petition April 17 for declaratory ruling at FCC, citing “immediate threats” from Verizon and Qwest to deny or delay providing facilities. Winstar argued that Communications Act and FCC rules required those facilities and services to be furnished to company. But RBOCs countered that federal bankruptcy law required IDT Winstar to assume and cure past debt on contracts taken on by pre-Chapter 11 Winstar. Qwest told FCC this week: “IDT’s actions have been carefully orchestrated to migrate Old Winstar customers onto its purchased network under terms that disregard the bankruptcy laws, as well as Qwest’s tariff provisions and operational processes.” Meanwhile, General Services Administration (GSA) weighed in at Commission, contending uninterrupted service to federal customers provided by Winstar was “critical” and in some cases had national security implications.
Under agreement valued at $55 million, Ericsson said it expanded original contracts with China Unicom for CDMA gear and services in 7 provinces in China. Ericsson said its CDMA solution had been expanded in Jiangsu, Anhui, Sichuan, Yunnan, Henan, Heilongjiang and Liaoning provinces. It also said it was conducting CDMA1X trial with China Unicom using Ericsson’s 3G platform for switching, radio access, IP and applications.
HDNet will launch new tier of high-definition premium programming packages by 4th quarter, but won’t deploy copy protection in order to facilitate copying of content, Pres. Mark Cuban said. HDNet will introduce HDTV general interest, sports and movie packages that will be targeted at cable and satellite operators and will be broadcast solely in 1080i, Cuban said. HDNet now transmits 16 hours daily of HDTV programming on channel 199 of DirecTV satellite service. It launched last fall.