|
|
Enron Mail |
--------------------------------------------------
Telecommunications Reports presents.... TR DAILY January 15, 2001 -------------------------------------------------- PLEASE NOTE: This electronic publication is copyrighted by Telecommunications Reports International. Redistribution or retransmission of any part of this electronic publication -- either internally or externally -- is strictly prohibited. Violation will be cause for immediate termination of your subscription and liability for damages. You may print out one hard copy for your personal use. If you are interested in having this publication sent to colleagues at your company, additional authorized recipients may be added to your subscription for a fee. Call Subscriber Services at (800) 822-6338, or send an e- mail to info@tr.com for more details. If you prefer not to receive TR Daily, please reply to customerservice@tr.com. Table of Contents Click here for the full issue: http://www.tr.com/online/trd/2001/td011501/index.htm WorldCom TO PAY $88M TO END LAWSUIT ALLEGING OVERCHARGES http://www.tr.com/online/trd/2001/td011501/Td011501.htm QWEST CITES IMPROVED SERVICE, ANNOUNCES LINE-SHARING PACTS http://www.tr.com/online/trd/2001/td011501/Td011501-01.htm PORTUGAL TELECOM AIMS TO EXPAND BRAZILIAN HOLDINGS http://www.tr.com/online/trd/2001/td011501/Td011501-02.htm `CREATIVE FINANCING' RECOMMENDED TO MEET ASIAN DEMAND FOR NETWORKS http://www.tr.com/online/trd/2001/td011501/Td011501-03.htm GOVERNMENT TELECOM OFFERINGS WON'T SPEED ADVANCED SERVICE ROLLOUT, PFF PAPER SAYS http://www.tr.com/online/trd/2001/td011501/Td011501-04.htm NEWS IN BRIEF http://www.tr.com/online/trd/2001/td011501/Td011501-05.htm *************************************************************** WorldCom TO PAY $88M TO END LAWSUIT ALLEGING OVERCHARGES WorldCom Corp., has agreed to pay $88 million to customers who claim they were overcharged for direct-dialed calls. The proposed settlement ends a class-action lawsuit brought by subscribers who complained that MCI WorldCom, Inc. (now WorldCom) misled them about the conditions under which it would charge them higher nonsubscriber rates for domestic and international calls. While the company admits no wrongdoing, it has agreed to compensate customers for the higher charges on calls placed between Feb. 5, 1996, and Oct. 15, 2000. Under the terms of the settlement, WorldCom also agreed not to raise "casual calling" rates for nonsubscribers this year. Daniel Girard, an attorney who represents the subscribers, said that a letter regarding the settlement would be sent to 5 million people who may be eligible for reimbursement. The U.S. District Court for the southern district of Illinois will decide at a March 29 hearing whether to approve the terms of the settlement in the case ("In re MCI Non-Subscriber Telephone Rates Litigation," docket no. 1275). In the lawsuit, the subscribers claimed that MCI didn't provide sufficiently clear tariff information describing when it would charge them the higher nonsubscriber rates and surcharges for placing direct-dialed calls. The tariff stated that customers who remain "presubscribed to MCI after [their] account(s) are removed from MCI's billing system" would be charged nonsubscriber rates. In 1998, the FCC found that the tariff was "too confusing" (TR, Nov. 19, 1998). The FCC's decision "opened the door" for the lawsuit and resulting settlement, Mr. Girard said. *************************************************************** QWEST CITES IMPROVED SERVICE, ANNOUNCES LINE-SHARING PACTS Qwest Communications, Inc., says it improved its service to end- user customers and other carriers in 2000 in key areas--including those that have come under fire from consumers and state regulators. Qwest filled almost 98% of it service orders on time, Afshin Mohebbi, Qwest's president-worldwide operations, told reporters during a conference call today. Ninety-five percent of local service repairs were completed on time, Qwest's best performance in this category since 1996, he said. He also cited reductions in the percentage of customers whose service was out for more than 24 hours and a decrease in "held or delayed" orders. Qwest today also unveiled permanent line-sharing agreements with MULTIBAND Communications, Inc., New Edge Networks, NorthPoint Communications, Inc., and Contact Communications. Line-sharing agreements enable competitors to use the high-frequency portion of the loop for data transmission while Qwest continues to provide voice service over the low-frequency portion. Permanent line-sharing agreements now are available to all wholesale customers, Mr. Mohebbi said. In other long-term plans, Qwest will seek the FCC's approval to offer interLATA (local access and transport area) services in at least one state by year-end; it plans to initiate state-level proceedings in several others, Mr. Mohebbi said. He said Qwest hoped to obtain approval in all of the states in its service area by the end of next year. Under section 271 of the Telecommunications Act of 1996, a Bell company must obtain FCC permission before providing in-region interLATA services. The FCC must consult with the relevant state commissions as well as the Justice Department to ensure that the Bell company has sufficiently opened its markets to competition. *************************************************************** PORTUGAL TELECOM AIMS TO EXPAND BRAZILIAN HOLDINGS Portugal Telecom SGPS SA plans to expand its Brazilian presence by acquiring wireless operator Global Telecom SA, which operates networks in the Parana and Santa Catarina states. Those states are neighbors to Sao Paulo, where Portugal Telecom already offers wireless service through its Brazilian subsidiary, Telesp Celular Participacoes SA (TCP). Under an agreement announced today, TCP will pay $556 million in cash and assume $654 million in debt to acquire Global Telecom from its current owners--Japan's KDDI Corp., Argentina's ITX Corp., and Brazil's Inepar SA Industria e Construcoes. Global Telecom's territory has 15 million "pops" (potential customers), of which the carrier has captured 463,000 subscribers. TCP has about 4 million subscribers. The combination of the two requires the approval of Brazil's telecom regulator, Anatel. TCP intends to pay for the transaction with its cash reserves and debt financing. The announcement of the agreement prompted Moody's Investors Service to place the debt ratings of Portugal Telecom on review for possible downgrade. By acquiring Global Telecom, Portugal Telecom would take "advantage of a unique investment opportunity in a high-growth wireless business," Moody's said in a statement. But "the magnitude of the investment may constrain the financial ratios" of Portugal Telecom, Moody's said, "as well as expose it to a higher risk operating environment." *************************************************************** `CREATIVE FINANCING' RECOMMENDED TO MEET ASIAN DEMAND FOR NETWORKS Future telecom infrastructure projects in Asia will require "creative financing solutions" if development is to keep pace with demand, a Washington, D.C.-based international telecom lawyer said today. The greatest obstacle to meeting Asia's demand for Internet and other telecom networks is "meeting the communications sector's demand for capital," according to Glenn S. Gerstell, a Milbank, Tweed, Hadley & McCloy LLP partner. Speaking at the Pacific Telecommunications Council's conference in Hawaii, Mr. Gerstell presented a "white paper" describing the benefits and drawbacks of various financing methods--and how a combination of approaches can secure needed financing in spite of the reluctance of financial institutional to take risks in less developed nations. "Techniques for Financing Telecoms and Internet Infrastructure Buildout in Asia," which was co-authored by Milbank, Tweed Senior Associate Alisa Fiddes, focuses on projects and companies in "start-up mode," rather than on more "mature" businesses. Vendor financing historically has provided limited options to purchasers. Continued telecom industry privatization, combined with a "proliferation of start-up companies," has further limited this option, according to the paper. However, national export credit agencies (ECAs) often are eager to finance and participate in projects involving sales of domestic high-tech goods. Combining vendor financing with ECA or multilateral credit agency funding could help overcome weaknesses in either financing method, the paper says. Likewise, reaching out to a combination of commercial bank markets and capital markets or entering into strategic partnerships "can reduce project risks by bringing together partners with different resources and expertise," it adds. *************************************************************** GOVERNMENT TELECOM OFFERINGS WON'T SPEED ADVANCED SERVICE ROLLOUT, PFF PAPER SAYS Through government-owned telecom networks, some states and cities are trying to ensure their constituents don't have to wait for advanced telecom services. But such efforts are counterproductive, according to a paper released by the Progress & Freedom Foundation, a Washington, D.C., think tank. "Governments that have entered the telecommunications business have been saddled with financial losses and obsolete, legacy technologies. Furthermore, government entry in the marketplace distorts incentives and slows the development of private-sector competition," writes PFF president, Jeffrey A. Eisenach, author of "Does Government Belong in the Telecom Business." He views the pace of state and local government entry into the telecom and Internet service businesses as "rapid and increasing," citing efforts by municipally owned utilities on Long Island, New York; Los Angeles; and Chicago. In total, the paper lists 233 municipal utilities that were providing one or more of the following services in 1998: cable TV, Internet access, high-speed data, broadband data resale, local phone, long distance, leased fiber, and municipal data network services. *************************************************************** NEWS IN BRIEF Wisconsin Gov. Tommy G. Thompson (R.) has appointed Robert Garvin to a seat on the Wisconsin Public Service Commission, effective March 1, subject to state Senate confirmation. Mr. Garvin most recently has been PSC Chairperson Ave M. Bie's executive assistant and previously held staff attorney and legislative liaison posts at the commission. He would succeed Commissioner John H. Farrow, who recently asked the governor not to reappoint him when his term expires in March. Mr. Farrow plans to return to his faculty position at the Milwaukee School of Engineering.... Duncan Lewis has been named president and chief operating officer at Global TeleSystems, Inc. (GTS), a London-based international carrier. He was managing director and chief corporate development officer at Equant NV. He succeeds Robert J. Amman, who will remain GTS' chairman and chief executive officer. But after GTS completes its proposed restructuring (TR, Nov. 20, 2000), Mr. Amman will become the company's nonexecutive chairman and Mr. Lewis will be the CEO.... Kymata Ltd. said today that Brendan Hyland will step down as chief executive officer of the Scottish optical telecom system manufacturer. Chief Operating Officer Michael Hickey has been named interim CEO.... Jeffrey D. Lin has been named chief financial officer at Zaffire, Inc., a California optical network developer. He was director and manager-investments at Vulcan Ventures, the investment firm of Microsoft Corp. co-founder Paul G. Allen.... Loren Stokes was named vice president-research and development at Cierra Photonics, Inc., a California fiber optics integration technology manufacturer. He was director-R&D at Hewlett Packard Co. spin-off Agilent Technologies, Inc.... A New York City telecom/real estate law firm has joined forces with the New York law office of Mintz Levin Cohn Ferris Glovsky and Popeo P.C. Jeffrey A. Moerdler, who has moved his private law practice to Mintz Levin, has been elected partner and section head of the firm's telecom and real estate sections. He brings with him eight lawyers: Stephen E. Friedberg and Pamela Caruso Yerman, who will be partners; and associates Helen Allison, Lorette H. Dundas, Carolyn C. Jones, Rhona J. Kisch, and C. Anthony Mulrain.... Dorothy McCarthy is the new head of telecom real estate initiatives at Global Broadband, Inc., a New York City integrated communications provider. She was managing director-national real estate at OnSite Access, Inc.... Time Warner Telecom, Inc., intends to raise as much as $700 million through the sale of stock and debt securities to help pay for its acquisition of GST Telecommunications, Inc. Time Warner Telecom, of Littleton, Colo., revealed its plan in a filing with the Securities and Exchange Commission. The funds would be used to repay an unsecured bridge loan that was used to pay for GST, Time Warner Telecom said. Further details of the fundraising effort will be disclosed in future filings, the company said. Time Warner Telecom last week completed the $690 million acquisition of GST, a competitive local exchange carrier that was in bankruptcy (TR, Sept. 18, 2000).... Nippon Telegraph & Telephone Corp. subsidiary NTT Com has agreed next month to form a Thailand data center joint-venture with Shin Corporations Public Co. Ltd., a Thai telecom conglomerate. Each will hold a 47.5% stake, while Saha Pathana Inter-Holding Public Co. Ltd. will hold a 5% stake. The venture will be capitalized at 1.72 billion yen (U.S.$14.5 million).... The South Korean Ministry of Information and Communications has granted an international private leased circuit license (IPLC) to Korea Thrunet Co. Ltd., a Seoul-based broadband service provider. Korea Thrunet said it initially would use the license for internal company use, and next year would offer IPLC services via satellite and submarine cable to domestic and global customers.... Global One has announced an interconnection agreement with Latinet, a broadband and Internet service provider. The agreement will enable Global One to provide frame relay service in Ecuador and Panama. It will market the service to the two nations' industrial sectors. Subscribers would be given access to Global One network access centers in 75 countries. ******************************************************** TR DAILY Copyright 2001 Telecommunications Reports International, Inc., (ISSN 1082-9350) is transmitted weekdays, except for holidays. Visit us on the World Wide Web at http://www.tr.com. Published by the Business & Finance Group of CCH INCORPORATED. Editor: George E. Brandon Associate Editor: Steve Peacock Editor in Chief: Victoria A. Mason Publisher: Stephen P. Munro 1333 H Street, NW, 1st Floor-East Tower, Washington, DC 20005 Editorial information: Telephone: (202) 312-6100 Fax: (202) 842-3047 Email: gbrandon@tr.com Customer Service: Telephone: (202) 312-6050 (877) 874-8737 Fax: (202) 842-3023 Email: customerservice@tr.com Federal copyright law prohibits duplication or reproduction in any form, including electronic, without permission of the publisher.=0F:
|