ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, May 31, 1994                   TAG: 9406010005
SECTION: BUSINESS                    PAGE: C-6   EDITION: METRO 
SOURCE: By RON BROWN STAFF WRITER
DATELINE:                                 LENGTH: Medium


CONTEST FOR CABLE

Two Western Virginia companies are waging a behind-the-scenes war in an effort to carve out a share of the Roanoke Valley's wireless cable television market.

Late last year, executives of Daleville-based Botetourt Communications Inc., parent company of Roanoke & Botetourt Telephone Co., said they were planning a Tinker Mountain transmitter to bring television to residents via antennas instead of cable.

But Microwave Television Inc., a New River Valley company owned by Steve Davie, claims it was already in the market and the Botetourt company is simply trying to run it out of business.

The battle rages in the Washington, D.C., courts and offices of Federal Communications Commission regulators, who must decide which of the companies has a legal right to wireless cable channels once reserved for educational purposes.

Botetourt Communications has contested to the FCC Microwave Television's right to four channels. And Microwave Television has asked the federal appeals court in Washington to decide whether Botetourt Communications has a legitimate right to the 12 channels granted it previously by the FCC.

Botetourt Communications President Allen Layman said he does not know when the FCC might rule on the four channels sought by both companies. "Only God knows, and the FCC," he said last week.

Henry Allen, who is reviewing the applications for the FCC, said a ruling may take as long as 60 days.

To apply for the channels, the two companies have had to agree to work with educators and to make at least 25 percent of the channels educational.

The dispute centers on access to four channels under competing applications filed on behalf of Virginia Tech and Roanoke schools. Microwave Television is working with Tech, and Botetourt Communications is working with Roanoke schools.

Layman said the four contested channels are crucial if Botetourt Communications is going to make significant inroads into the market. The company already has received approval of 12 channels under applications made to the FCC on behalf of Botetourt County, Roanoke County and Salem schools.

"I think we need at least 16 channels, and hopefully 20," Layman said.

Botetourt Communications had hoped to have wireless cable on line by this summer. That start-up date has been pushed to early 1995 while the FCC resolves the dispute.

Davie could not be reached for comment, but Adrian Cronauer, a Washington-based communications lawyer who represents Davie's company and who used to manage Roanoke radio station WPVR, said Microwave Television has its transmitter already in place on Poor Mountain in Roanoke County.

He said the company already has six channels approved, has applications pending on five more and will soon make applications on several others.



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