NEW ORLEANS -- FCC Chmn. Powell told NCTA convention- goers that govt. wasn’t forcing DTV upon public, and consumers would want it as soon as viewers got taste of its better quality picture and sound, as well as new and varied offerings. “Consumers don’t know yet,” he said. “Part of what you have to do in your business as an entrepreneur is show them the way.” Powell has been encouraging broadcasters, cable and satellite operators, as well as consumer electronics industry, to embrace his voluntary DTV transition plan. “I think in the digital world, the interactive world, you and everyone else have to be missionary about it.” He drew parallel with early stages of e-mail and how, at first, not many had it and said they didn’t need it, but later found they couldn’t live without it. “Now if you don’t have it, you're just a Luddite,” Powell said. He joked that HDTV sets -- even with their hefty price tag -- had become sign of machismo among men. “Every man in this room knows the TV envy thing,” he said with a broad smile: “Sixty-two inches, huh?”

NEW ORLEANS -- Aides to several key members of Congress said their bosses were reluctant to mandate answers to DTV transition, although some still were holding out that threat as motivation for leaders of cable, broadcast and consumer electronics industries to work out their differences -- and fast. Their comments came on NCTA convention panel discussion late Mon. on cable issues as seen from Capitol Hill. Jessica Wallace, aide to House Commerce Committee Chmn. Tauzin (R-La.), said he had seen progress in series of informal roundtables his committee had been holding with industry leaders and was hopeful that issues could be resolved by companies, rather than Congress. However, Bill Bailey, aide to Sen. McCain (R-Ariz.), said McCain recently threatened to simply set date to take back spectrum from broadcasters unless they acted to move off that spectrum themselves in reasonable period of time.

Aides to several key members of Congress said their bosses were reluctant to mandate answers to DTV transition, although some still were holding out that threat as motivation for leaders of cable, broadcast and consumer electronics industries to work out their differences -- and fast. Their comments came on NCTA convention panel discussion late Mon. on cable issues as seen from Capitol Hill. Jessica Wallace, aide to House Commerce Committee Chmn. Tauzin (R-La.), said he had seen progress in series of informal roundtables his committee had been holding with industry leaders and was hopeful that issues could be resolved by companies, rather than Congress. However, Bill Bailey, aide to Sen. McCain (R-Ariz.), said McCain recently threatened to simply set date to take back spectrum from broadcasters unless they acted to move off that spectrum themselves in reasonable period of time.

N.Y. PSC, pioneer in opening local phone networks to competition, warned FCC late last week that Commission’s broadband deregulation proposal could impede state agency’s often-heralded efforts. “New York’s progress in opening markets to competition could be impaired if the Commission prohibits unbundling for Internet access purposes,” PSC said in comments on FCC’s proposal to free Bell companies’ high- speed data services from interconnection and unbundling requirements. “We remain concerned that unless CLECs have access to ILECs’ facilities to provide high-speed Internet access, they will not be able to compete for local service,” PSC said. “The Commission’s tentative conclusion that the transmission component of retail wireline broadband Internet access, when provided over a carrier’s own transmission facilities, is an information service with a telecommunications component is incorrect.”

Tucked into broadband bill (S-2448) introduced late Thurs. by Senate Commerce Committee Hollings (D-S.C.) is provision aimed at preserving CLEC access to remote terminals and central offices (COs), point of contention among ILECs and CLECs. HR-1542 by House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.) would remove interconnection obligations on principle that if Bells invested in DSL equipment they shouldn’t have to open it to competitors. But Hollings’ proposed Broadband Telecom Act of 2002 would offer $500 million in loans in 2003-2007 to upgrade remote terminals and fiber between remote terminals and COs. However, those funds would be available only if the FCC maintained CLEC access to remote terminals. Loans would be part of multibillion-dollar spending package for broadband to rural and underserved areas that would be funded by revenues from telephone excise tax. Bill is co-sponsored by Sens. Clinton (D-N.Y.), Dorgan (D-S.D.), Inouye (D-Hawaii), Rockefeller (D-W.Va.), Stevens (R-Alaska).

Cal. PUC affirmed administrative law judge’s finding that Roseville Telephone couldn’t use money from state’s universal service high-cost fund to replace $11.5 million in annual revenue it lost at end of 2000 when extended area service agreement with Pacific Bell expired. PUC has allowed Roseville to draw from fund on interim basis until it could determine how lost revenue should be replaced. Roseville had asked for draw to be made permanent, but PUC (Case U 1015 C) said that would be inappropriate because it would mean Roseville’s general operations were being subsidized by other Cal. ratepayers.

Senate Commerce Committee Chmn. Hollings (D-S.C.) at our deadline was poised to introduce yet another broadband bill, this one aimed at promoting rural broadband development. “With the exception of rural America and underserved areas, there is no broadband deployment crisis in America, notwithstanding the Bell claims,” Hollings wrote in “Dear Colleague” letter. Sen. Breaux (D-La.) has drawn great deal of attention with recently introduced bill that would require FCC to create regulatory parity among all broadband providers in 120 days.

EchoStar said first-quarter loss narrowed to $38.6 million from $169.8 million year earlier as it posted better- than-expected gain in subscribers. Revenue increased to $1.1 billion from $861.9 million. EchoStar added 335,000 net new subscribers in quarter, surpassing analysts’ estimates of 313,000, but down from 460,000 additions year ago. It ended quarter with 7.1 million subscribers, is targeting 8 million by year-end.

EchoStar said first-quarter loss narrowed to $38.6 million from $169.8 million year earlier as it posted better-than- expected gain in subscribers. Revenue increased to $1.1 billion from $861.9 million. EchoStar added 335,000 net new subscribers in quarter, surpassing analysts’ estimates of 313,000, but down from 460,000 additions year ago. It ended quarter with 7.1 million subscribers, is targeting 8 million by year-end.

Ad hoc group of Neb. ratepayers asked Neb. Supreme Court for ruling that 7% monthly phone bill surcharge that supported state universal service fund was illegal tax. Plaintiffs say fee set by PSC in 1999 is unconstitutional tax that should have been imposed by legislature, not agency. Suit also alleged local exchange companies were misusing money from fund on general network upgrades rather than subsidizing service in high-cost areas. Surcharge, which generates more than $50 million annually, applies to all intrastate services except Internet access and covers costs above state’s $17.50 residential and $27.50 business benchmark rates. Some 26 of state’s 50 LECs draw from state USF.