THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, October 13, 1994 TAG: 9410130472
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY DAVE MAYFIELD, STAFF WRITER
LENGTH: Short : 39 lines
The Federal Communications Commission has rejected a request from a Chesapeake company for more time to make a down payment for interactive TV licenses.
Phoenix Data Communications Inc. was one of 13 companies across the country whose requests for extensions were turned down by the FCC. The companies asked for the waivers after submitting high bids during an auction in late July for the so-called interactive video data licenses. Such licenses, which cover a sliver of the radio spectrum, would allow companies to sell all sorts of video services - from home shopping to news and sports information - to TV viewers.
Phoenix was a high bidder for licenses in Hampton Roads, Richmond, Petersburg and Las Vegas. But the company missed an Aug. 8 deadline for making a $576,000 down payment for the licenses. It argued that it needed more time from the FCC to gather critical information about equipment that would be used in its service.
Two other companies that won bidding for licenses in Hampton Roads - Community Teleplay of Washington and 22nd Century Communications of New York - made their payments.
Tal Shamgar, a Phoenix vice president, said his company would appeal the FCC's decision, which came in the form of a staff order last Friday. The FCC commissioners handle such appeals.
If last week's order holds up, the agency plans to ultimately re-auction the defaulted licenses, an FCC spokesman said.
About 200 other companies that won interactive video data licenses during the FCC auction have met their down-payment obligations. by CNB