FCC returned $2.8 billion (85%) of deposits from Jan. 2001 NextWave re-auction but concluded bidders should continue to be held to nearly $16 billion in bid obligations. “This action will give the bidders access to the bulk of their money while at the same time preserving the results and integrity” of re-auction of PCS licenses that U.S. Appeals Court, D.C., overturned last summer. Verizon Wireless, which has largest deposit of $1.7 billion, had argued to FCC that to extent it had right to void auction contract on NextWave licenses, it chose to do so. Commission said late Wed. it struck “public interest balance between hardship that would be imposed by continued retention of the down payments and the need to protect the integrity of the auction by authorizing refund of a substantial portion of the down payments.” But FCC order specifically turned back Verizon Wireless claim that delay in licensing “entitles it to avoid its obligation to pay the full amount of its winning bids.” Earlier this year, Supreme Court granted FCC request that it hear challenge of D.C. Circuit decision, which had reversed Commission decision to cancel NextWave licenses for missed payment. Result of latest FCC order is that if Supreme Court decision has effect of upholding Jan. 2001 re-auction results, those bidders then could be held to original amounts they agreed to pay for licenses.
Country of origin cases
BBC, BBC Worldwide and Discovery Communications said they signed 10-year extension of their partnership. Their original alliance, signed in March 1998, was to expire this year. Announcement extends joint venture through 2012. Agreement has 3 main elements: (1) Co-production of real- world programming. (2) Development of jointly owned TV channels around world. (3) Development and distribution of BBC America. Joint venture already has yielded many programs, including Walking With Dinosaurs and its sequel Walking With Prehistoric Beasts. Jointly owned TV channels include People+Arts and Animal Planet.
Rep. Boucher (D-Va.), member of House Telecom Subcommittee, called on FCC to make public latest license agreement that CableLabs requires manufacturers to sign before they can bring to market navigation devices that connect to cable systems. Boucher, in letter to FCC Chmn. Powell dated March 21, said issue was key to spurring DTV transition and to determining what was “fair use” for consumers and what content was copyright-protected material. Boucher said CableLabs had imposed requirement that only companies willing to sign nondisclosure agreement could review terms of license to manufacture products in question. He already had asked Commission to publish CableLabs’ “POD- Host Interface License Agreement” (PHILA), but Commission declined to do so, saying that as general matter, content protections were allowed in those devices. In previous response to Boucher, Commission said it hadn’t received any complaints that PHILA license violated Commission rules. But lawmaker said one condition of nondisclosure agreement was that person or entity signing it could not publicly disclose or discuss its contents, including any disclosure that would accompany petition to FCC. “The industry is being told its only remedy is to complain publicly while still keeping the offered terms secret,” Boucher wrote: “Given this effective gag order, it should come as no surprise that the Commission has not received any petitions.”
Liberate countersued OpenTV, alleging latter’s technology violated several of its early and seminal patents for key interactive TV (iTV) technologies. In countersuit, filed in U.S. Dist. Court, San Francisco, Liberate is seeking monetary damages and injunctive relief, asserting 4 patents relating to: (1) Addressable multimedia presentations. (2) iTV transactions. (3) Data multiplexing and streaming. (4) Presentation management systems. “While we have previously not asserted our patent portfolio against other companies, we view this countersuit as a measured and necessary response to OpenTV’s resort to litigation,” said Kent Walker, Liberate’s senior vp-corporate & legal affairs. Liberate also denied it had infringed on 2 patents OpenTV had asserted earlier, alleging that they were invalid, and asserted that OpenTV’s membership in industry standards bodies restricted its ability to assert patents. Liberate’s countersuit followed suit OpenTV suit filed in Feb., seeking injunction and monetary damages. Neither case has been set for trial. OpenTV responded to Liberate’s countersuit by saying it “remains confident in the strength” of original suit. “We have not yet reviewed the substance of today’s counterclaims in detail, however, we have no reason to believe that OpenTV infringes the patents cited,” OpenTV Gen. Counsel Jesse Berg said.
Northpoint “has the money,” to launch satellites and its latest filing at FCC (CD March 22 p3) wasn’t ruse to push licensing process further without auction as some rivals have suggested privately, CEO Sophia Collier said Fri. FCC doesn’t use financial considerations in licensing applicants, Northpoint filing said, just milestones. Under Commission rules, Northpoint is under no obligation to disclose financial agreements before license is approved, filing said. It believes new business model puts it in better position to compete against EchoStar and DirecTV. Ironically, latest Northpoint decision may help EchoStar acquisition of DirecTV because revamped business model could give Hill leaders viable competitor they're seeking to preserve competition, particularly in rural areas, industry officials said. Northpoint also said in application that, as company providing global service, it was exempt from spectrum auction. Industry source disagreed: “They are still a terrestrial company trying to use satellite spectrum.”
Canada’s broadcasters urged govt. to change its broadcasting rules so more Canadian content would be aired and marketed abroad. “When we are able to serve our communities well, provide quality programming, turn a profit and go head-to-head with the ever-growing foreign and domestic competition, we can achieve the government’s public policy and cultural objectives,” Canadian Assn. of Bcstrs. (CAB) Pres. Glenn O'Farrell told Canadian Heritage, the department charged with reforming copyright laws. CAB’s presentation March 21 covered range of reforms group believes are needed to keep country’s broadcasting system competitive globally.
NBC affiliates will have full complement of network executives participating in their Tues. meeting in N.Y., to be held in conjunction with TV Bureau of Advertising’s annual conference (CD March 15 p10). In compliance with bylaws, affiliates scheduled annual session on their own after NBC declined to host meeting. Originally, only TV Network Pres. Randy Falco and John Damiano, head of affiliate relations, had been scheduled to participate. Participants from NBC in Q&A session now includes Chmn. Robert Wright, Pres. Andrew Lack, Sports Chmn. Richard Ebersol and Entertainment Pres. Jeff Zucker, according to Affiliates’ Chmn. Jack Sander of Belo.
ORLANDO -- One theme that emerged at CTIA Wireless 2002 here this week was need for more flexible federal spectrum policy, although govt. and industry officials pointed to new crop of questions raised by regulatory changes in that direction. “It’s an important concept and I congratulate the FCC for introducing it,” said Brian Fontes, vp-federal relations, Cingular Wireless. “However, I express a great deal of caution as you address the issue of flexibility that it doesn’t have the effect of reallocation,” he said on panel discussion. Flexible allocation issues have involved secondary markets proceeding at FCC, Spectrum Policy Task Force recently created by Commission and pending proceedings such as New ICO petition to deploy terrestrial services in mobile satellite service spectrum.
Telecom bills advanced in Ind., N.Y., Utah. and Okla. Utah Gov. Mike Leavitt (R) signed a bill that clarified state telecom taxation policy. Measure (SB-59) specifies that state telecom taxes apply to municipally owned carriers as well as to privately owned companies. Ind. Gov. Frank O'Bannon (D) signed bill (SB-180) that allows state’s enhanced 911 advisory board to invest 911 fees collected from wireless carriers and use proceeds to reimburse carriers and local 911 boards for expenses incurred in meeting FCC’s Phase 2 requirements for pinpointing location of wireless phone making 911 call. New law also reduces state board’s size to 7 members from 11 and makes state treasurer voting member of board. Ind. legislature passed bill (SB-52) to conform state wireless taxation to federal law by making wireless services taxable at subscriber’s place of primary use, typically home or workplace, regardless of where call occurred. Bill hit snag in House when rider was attached to increase sales tax distributions supporting economic development zones in city of S. Bend but Senate leaders in conference committee succeeded in deleting amendment and returning bill to original form. N.Y. legislature passed bill (SB-6079) to require state agencies to develop formal privacy policies for their Web sites. Bill sent to Gov. George Pataki (R) would require that policies include what personal information was collected, how that information would be retained and how it would be used, how site users could access their own collected information and steps agency took to ensure confidentiality. Okla. Senate passed bill to require Attorney Gen. to establish and enforce state no-call telemarketing list. Measure (SB-950) is similar to bill passed by House (HB-1923). Bills differ in that House bill specifies maximum $1,500 fine for each offense, while Senate bill would authorize AG to set fines above that level for chronic offenders.
Man who called Tauzin-Dingell bill “blasphemy” will hear testimony today (Wed.) from man who called Tauzin-Dingell opponents “parasites.” House Commerce Committee confirmed Tues. that House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.) would testify, as expected (CD March 14 p4), in defense of their Bell data deregulation bill, HR-1542. Senate Commerce Committee Chmn. Hollings (D- S.C.) has made no secret of his dislike for bill, but in holding hearing he already has gone further than another opponent, former House Commerce Committee Chmn. Bliley (R- Va.). In last Congress, Tauzin and Dingell managed to convince majority of House to co-sponsor bill, but Bliley still refused to hold hearing. Now he’s retired, Tauzin occupies his seat, and bill has passed House and is pending in Senate. Hollings originally scheduled hearing on local phone competition, but after convincing Tauzin -- who initially compared invitation to “bear trap” -- and Dingell to testify, he has decided to have 2nd hearing later on local competition with witnesses opposed to Tauzin-Dingell. In recent comments, Hollings called HR-1542 “blasphemy,” while Dingell said CLECs that wanted to interconnect with Bells and oppose Tauzin-Dingell were “parasites.” Hearing is at 9:30, Rm. 253, Russell Bldg., and will be simulcast on http://commerce.senate.gov/.