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Television Digest with Consumer Electronics, March 6, 2000

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Citing nonpayment of dues, NAB removed NBC from board seat. Action followed NBC request that NAB cut network's annual dues to $200,000 from $400,000. Network also has opposed NAB's continued support of TV ownership caps. In letter to NBC Vp Robert Okun, who held NBC seat, NAB Pres. Edward Fritts said group "had hoped to avert this situation," but said it's "extremely important that broadcasters speak, as much as possible, with one voice to support our common goals and values." NBC's WNBC N.Y.C. is more than 6 months in arrears on dues, official said, and other NBC stations are behind by varying amounts.

Cablevision Systems won highly sought $23.4 million contract to provide broadband voice, video and data services to N.Y.'s Westchester County for 5 years. Outdueling such telecom giants as AT&T, Bell Atlantic and MCI WorldCom, Cablevision's Lightpath subsidiary said it would spend $200 million over next 18 months building hundreds of miles of broadband connections. Cablevision, Westchester's biggest cable operator, said broadband network eventually could link more than 500 public buildings, as well as homes and businesses. Other public entities, such as cities of Mt. Vernon, New Rochelle and Peekskill, said they also may use Westchester Telecom network.

Gilat-to-Home (GTH) will subsidize proposed 2-way high-speed satellite service that will be sold through RadioShack and EchoStar for first 2 years, Chmn.-CEO Yoel Gat told analysts. GTH Internet access service will start in fall and subscribers will number in "few tens of thousands" this year, he said.

Intelsat threatened to stop working with U.S. companies if "extraordinary meeting of parties" it has called decides that privatization bill in Congress violates Intelsat treaty. Conference report privatizing Intelsat passed March 1, Senate approved report March 2 and House is expected to adopt it this week. Conferees made some modifications to address White House concerns that national security use of Intelsat satellites could be compromised. In another change, Intelsat spinoff New Skies will have until July 1, rather than April, to hold initial public offering (IPO), with ability to extend it to July 31, 2001, if market conditions require delay. Intelsat board "wanted to come up with a backup plan in case the bill didn't go through the way we wanted it to," Intelsat External Affairs Vp Leonard Dooley said. "We are prepared to move operations and people to another country. We don't want to do that. We are hoping we can resolve all of the issues." Decision could cost U.S. "$150 to $200 million each year" in telecom services that it would lose to other countries, he said.

Wrapping up months of contentious debate over future of broadband access, group backed by Consumer Energy Council of America (CECA) urged policymakers to promote "vibrant competition" among broadband providers, "a nondiscriminatory access system" for consumers and "regulatory certainty and stability." In 88-page report issued March 2, CECA Broadband Access Summit largely steered clear of such controversial issues as open access and govt. regulation of broadband cable systems. Document, consensus of panel of more than 50, urged such relatively tame objectives as content and ISP choice for all consumers, greater policy coordination among federal, state and local officials, strong consumer protections for Internet users, more extensive broadband access for low-income and hard-to-reach consumers.

Canadian Webcaster iCraveTV was "simply unable to continue with protracted multifront litigation" battle with adversaries with "virtually infinite resources," Pres. Bill Craig said following Feb. 28 announcement that his company had ended legal war with broadcasters, sports leagues and other program rights holders. "Settlement" called for iCraveTV to stop streaming broadcast signals in exchange for copyright coalition's dropping lawsuits in U.S. and Canada -- essentially full victory for MPAA- led coalition. Web site already had been shut down by restraining order (TVD Feb 14 p3) pending trial that wasn't expected for months. MPAA Pres.-CEO Jack Valenti said iCraveTV example would "serve as a deterrent to anyone who seeks to take that which they do not own." Webcaster had drawn ire of copyright holders by neither soliciting their permission nor compensating them for streamed programs. However, Craig continued to maintain that his activities "were perfectly legal under Canadian law." His position has been that Webcasting qualifies for compulsory copyright license under comparatively vague Canadian retransmission rules. He said settlement allows iCraveTV to resume what he referred to as "retransmitting broadcast signals" in Canada "once Canadian law is clarified." In meantime, Web site now will focus on negotiating licenses with rights holders to resume streaming video, he said. Craig said suit had benefit for company because it spurred development of "enhanced geographic screening technology, which we believe will have widespread applications in e-commerce." Restraining order required Web site to be able to verify users' location in Canada before offering content to prevent it from running afoul of U.S. law. ICraveTV "will be making further announcements about its screening technology and new broadcasting initiatives over the next few weeks," Craig said.