Netro outlined plans Tues. to buy AT&T Wireless’s fixed wireless assets -- formerly known as Project Angel -- for $45.5 million. Proposed deal includes $16 million in cash and $29.5 million in Netro shares and would close fixed wireless chapter for AT&T Wireless that originally started under AT&T Chmn. Michael Armstrong. Netro will provide AT&T Wireless with 8.2 million common shares, which were trading at $3.60 Tues. Transaction includes AT&T Wireless’s fixed wireless development team, license for intellectual property, equipment and “proprietary software assets.” Companies said they expected deal to close in 30 days, giving AT&T Wireless 13.5% of Netro. They said AT&T Wireless’s fixed wireless operations had 47,000 subscribers in 10 metro markets, providing voice and high-speed data services. When acquisition closes, 126 AT&T Wireless employees will join Netro. AT&T Fixed Wireless Vp-Engineering John Saw will become senior vp-engineering for Netro and Lewis Chakrin, exec. vp-corporate strategy & planning for AT&T Wireless, will join Netro’s board. Netro said it planned to sell former AT&T Wireless fixed wireless offering into its installed customer base and target markets. It said it planned first to target offering to international carriers that owned 3.5 GHz licenses. “Netro will begin to adapt the technology for the international market immediately and expects to generate revenue from product sales in the second half of 2002,” it said. Netro Chmn. Gideon Ben-Efraim said that “in the last several months, we had reviewed several strategic initiatives and decided to focus on the next- generation, low-frequency fixed wireless access market to address the international emerging markets that require a voice and data wireless solution to complement a limited wireline infrastructure.” In decision that company described as bittersweet in Oct., AT&T Wireless had indicated it was exiting fixed wireless business, move that entailed taking $1.3 billion charge. AT&T had used Wireless Communications Services licenses to deploy Project Angel fixed wireless broadband effort. Project was marketed as using single remote unit to provide wireless local area network, 4 phone lines and high-speed Internet access.
Country of origin cases
U.S. Supreme Court Mon. granted extension until Feb. 1 for responses to be filed on FCC’s request for review of U.S. Appeals Court, D.C., ruling that returned PCS licenses to NextWave. NextWave, Alaska Native Wireless (ANW) and VoiceStream had backed additional time in interest of possibly reaching settlement agreement over licenses. Verizon Wireless had balked at request for 30-day extension, telling court Fri. that there was “no current prospect of the parties’ reaching a new settlement” and that proposed 30-day extension would cause it “irreparable harm.” Verizon had told court, however, it didn’t oppose 14-day extension, which is what Supreme Court granted Mon. Verizon acknowledged last week that it wasn’t interested in another round of settlement negotiations until deposit on NextWave licenses it made after Jan. 2001 reauction was returned. But several industry observers said backing of VoiceStream and ANW, designated entity that has financial backing from AT&T Wireless, could point to new shape that settlement prospects are taking. “It kind of shows where the rift is,” industry observer said. FCC filed petition for review at Supreme Court Oct. 19 over U.S. Appeals Court, D.C., ruling that overturned agency’s cancellation of NextWave’s licenses for missed payment. Congress ultimately failed to pass settlement agreement reached by NextWave, re-auction winners and govt. over licenses by Dec. 31 deadline. As result, that earlier agreement terminated at year-end, NextWave told high court. “An additional 30-day extension is needed to permit exploration of possible alternative settlement arrangements for resolving the dispute between NextWave and the government over NextWave’s rights to the spectrum licenses,” NextWave told court. Acting Solicitor Gen. Paul Clement indicated he didn’t object to request for more time, NextWave said. ANW and VoiceStream told Supreme Court that request for more time wouldn’t affect effort by Jan. 2001 re-auction winners to get deposits on their licenses returned by FCC. Filing was made by Arctic Slope Regional Corp., Council Tree Communications and VoiceStream. Arctic Slope was original intervenor in NextWave court proceedings. Arctic Slope and Council Tree are among managing members of what came to be ANW when re- auction was held. Carriers that won NextWave licenses in re- auction year ago -- including ANW, Verizon Wireless and VoiceStream -- asked Commission to refund $3.1 billion in down payments that agency has been holding for nearly year. ANW and VoiceStream argued to high court that: (1) Extension of time wouldn’t have “any bearing” on separate matter of refund from FCC on NextWave licenses. “Indeed, because this case would not be heard until next term in any event, we do not believe the requested extension would prejudice any party,” they said. (2) More time would help in exploring settlement options over license disputes. Carriers said they disagreed with Verizon Wireless that “there are no prospects for settlement at this time.” While not balking at shorter extension, Verizon Wireless had said it would suffer “irreparable harm” if court granted full 30-day request. Carrier told court that from its perspective, there wasn’t any current prospect of reaching new settlement over licenses.
Utah PSC set Jan. 29 hearing on old, complex $16.9 million tax rebate dispute between Qwest and 27 Utah counties. Dispute took off in 1998 after counties and Qwest agreed localities had overtaxed Qwest by $16.9 million because of property overassessments 1986-1998. But counties went to state courts and PSC, asserting Qwest already had recouped taxes at issue through its rates, and payment of rebate would be unjust double recovery. Counties deposited funds in escrow account pending resolution. Legal battle for next 3 years centered on whether state courts or PSC was proper venue for determining whether payment of tax rebate would be double recovery for Qwest. Jurisdictional issue finally was settled by state Supreme Court last Sept. with ruling that this was ratemaking matter to be settled by PSC. Counties reasserted original claim to PSC (Case 01-049-75) that Qwest already had recovered money and asked that $16.9 million in escrow account be returned to them. Qwest called for denial of that request and reasserted its claim that it was owed those funds. PSC’s Utilities Div. cautioned that resolution of matter could be affected by statute of limitations because time period at issue in dispute stretched back 14 years.
Current economic crisis in Argentina has had little effect on satellite companies trying to leverage emerging Latin American satellite Internet market because most already had abandoned or postponed rollouts there because of poor market conditions in U.S., industry sources said.
Acting N.J. Gov. Donald DiFrancesco (R), on his last day in office Thurs., signed 2 telecom bills passed in last days of 2001 session: (1) SB-1358, which requires Board of Public Utilities to enforce FCC’s antislamming rules. (2) SB-2399, which institutes 24-hour toll-free hotline for filing complaints of computer crimes. In other states, Cal. Assembly Transportation Committee opens hearings today (Jan. 14) on bill (AB-911) to ban use of handheld mobile phones while driving. Because bill is carry-over measure from 2001, it must pass Assembly by end of Jan. or it dies. Cal. Assembly’s Education Committee will hold Jan. 15 hearing on bill (AB-878) to ease restrictions on wireless telecom devices for students at school. Current law allows school principals to let students carry pagers and mobile phones only if they're authorized by doctor as essential for student’s health. Pending bill would allow school boards to authorize student wireless devices for safety as well as health reasons. New bill in Wis. (AB-708) would require telecom providers to notify residential customers by mail and by phone if they accumulated more than $500 in charges in single billing period. Failure to provide notice within 14 days of $500 total could result in forfeiture of charges. Bill also would require PSC to establish streamlined alternative to traditional complaint process for resolving retail residential service and billing disputes, with burden placed on carrier to disprove customer’s allegations. New Mo. antispam bill (SB-665) would prohibit transmission of e- mailed ads (spam) that contained false or misleading information on subject, origin or transmission path of message. It would apply to spam sent from computer in state or to Mo. resident’s e-mail address. New Mo. Internet filter bill (SB-665) would require schools and libraries offering Internet access to install filtering programs that restricted minors’ access to pornographic Internet sites or offer Internet access only through ISPs that filtered content. Requirement wouldn’t apply to computers used exclusively by adults or employees. New S.C. bill (SB-823) would require hotels and motels to post at each phone rates they charged for local, long distance, toll-free and room-to-room calls along with rates for e-mail or fax messages and Internet access. Ill. House passed resolution (HR-605) asking FCC to grant permanent waiver of 11-digit dialing requirement for 224 overlay code atop suburban Chicago’s 847 code. New dialing pattern took effect Jan. 5.
ALTS said it was “extremely disappointed” that FCC denied Net2000 complaint against Verizon for refusing to convert special access circuits to enhanced extended links (EELs). ALTs said Commission’s decision (CD Jan 10 p5) took direction never intended in agency’s original conversion rules or by carriers -- CLECs or ILECs -- that proposed those rules. Basically, agency turned restricted enforcement action into rulemaking, ALTS officials said.
FCC asked for comments on petition filed by Adventure Bound Outdoors -- carried on Outdoor Channel, FamilyNet and 12 local TV stations -- seeking exemption to closed- captioning rules. Also seeking exemption is USA Bcstg., which owns 13 full-power UHF TV stations that carry electronic retail programming and plan to change format to provide original and local programming. Both say rules pose undue burden. Comments are due Feb.8, replies 20 days later.
Cox Enterprises Pres. David Easterly retires, remains vice chmn… Time Warner Cable promotions: Mark Aronson to vp-program development, Lynne Constantini to vp-programming, Bonnie Hathaway to vp-public affairs, Jeff Zimmerman to vp- gen. counsel… Changes at Fla. PSC: Lila Jaber becomes chmn., Braulio Baez and Rudolph Bradley sworn in as comrs… CTAM elected new officers for 2002: Chmn. Kevin Leddy, Time Warner Cable; Vice Chmn. Len Fogge, Showtime; Secy. David Watson, Comcast; Treas. James O'Brien, Cable Center; immediate past Chmn. Douglas Holloway, USA Networks. New CTAM dirs.: Brian Kelly, Time Warner Cable; Joseph Rooney, Cox; Brad Samuels, Comedy Central… Alan Cohen, former ABC Entertainment exec. vp-mktg., named pres.-theatrical mktg., 20th Century Fox… U. of Cal.-Irvine Prof. Debra Richardson joins board of Cotelligent Inc… Khadeeja Sherrell promoted to vp-human resources, Cox Interactive Media… Danielle Gelber, ex-Fox, named Showtime vp-original programming… Sabrina Sanchez promoted to dir.-program mktg., CableReady… Promotions at Charter: Christian Fenger to senior vp- operations, Western Div.; Bill Shreffler to senior vp- operations, Central Div.
As 2002 state legislative sessions get under way, sampling of prefiled and newly-introduced legislation indicates early interest in telemarketing, spam, phone rates, and car phone safety, along with other wireless issues.
FCC rescinded one controversial fine for broadcast indecency but imposed $14,000 indecency fine on another FM station in separate actions announced Tues. Second case appeared to reduce FCC’s recent emphasis on need for complainant to document alleged violations. Enforcement Bureau decision to rescind fine against KKMG(FM) Pueblo, Colo., owner Citadel Bcstg., prompted protest from FCC Comr. Copps, who said full Commission should act on case.