THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Thursday, August 18, 1994              TAG: 9408180547
SECTION: BUSINESS                 PAGE: D3   EDITION: FINAL 
SOURCE: STAFF AND WIRE REPORT 
DATELINE: WASHINGTON                         LENGTH: Short :   48 lines

TWO LOCAL FIRMS AMONG THOSE FCC PLANS TO PUNISH THE COMPANIES DEFAULTED ON THEIR DOWN PAYMENTS FOR LICENSES, THE FCC SAYS.

The Federal Communications Commission said Wednesday that 28 companies, including two based in Chesapeake, defaulted on their down payments for broadcast licenses they won last month.

The FCC said the companies face stiff penalties for not coming up with the money. It said it intends to reauction their licenses for a new technology called interactive video data, which promises to bring such services as home banking into living rooms.

But one of the Chesapeake companies that defaulted, Phoenix Data Communications Inc., said it expects to hold onto its licenses. Tal Shamgar, a Phoenix vice president, said Wednesday that his company this week filed with the FCC its engineering plans for channels in Hampton Roads, Richmond, Petersburg and Las Vegas.

Shamgar said Phoenix didn't make its $576,000 down payment last week because it had asked for an extension to enable it to gather more information on the technology in interactive video data services. It has the money and is ready to pay now, he said, but is reluctant to do so until it hears from the FCC about whether its extension request will be approved.

``I think something can be worked out with them on penalties to let us go ahead and finish the deal,'' he said.

Gardner Productions, the other Chesapeake company, defaulted on a down payment for its license in Charlotte, according to the FCC. Gardner officials couldn't be reached Wednesday for comment.

Two other companies that won licenses for interactive video data channels in Hampton Roads apparently made their down payments, because they weren't on the FCC's list Wednesday. Those companies are Community Teleplay of Washington and 22nd Century Communications of New York.

The FCC has gotten some pressure to redo the entire auction, during which 178 companies bid for 594 licenses across the country. The two largest bidders were among the 28 companies that missed their initial payments.

If all the bidders ante up, the auction promises to raise close to $200 million for the FCC. It is one of an unprecedented series of public sales of airwaves by the agency. Auctions for more expensive slices of the radio spectrum are scheduled for later in the year. by CNB