CEA kept up its campaign for FCC to take immediate action to create competitive retail market for digital cable set-top boxes. In its 2nd 6-month update to Commission on outstanding DTV-cable compatibility issues, CEA called on agency to force cable MSOs to “invest wholly in open standards for system upgrades,” make MSOs “use the same technologies as those made available to competitive entrants” and curb “the anticonsumer and anticompetitive provisions” of cable industry’s POD-Host Interface (PHI) license for copy protection technology. CE group also urged Commission to insure that cable industry “provides expeditious solutions to allow competitive products to access video-on-demand, pay-per-view and other advanced services.” CEA, which must provide status reports on DTV-cable issues along with NCTA, complained that last 6 months “have seen too-slow progress on the standards needed to ensure compatibility between digital cable systems and digital television receivers.” Despite technical agreements signed with NCTA in Feb. 2000, CEA charged that cable industry had dragged its heels in implementing standards and had shown “continued preference for proprietary technologies” that frustrated consumer choice. “Even when the standards that are now being developed are completed, there will remain significant obstacles to achieving compatible operation of digital cable systems and digital television receivers and home recording equipment,” CEA said.

DirecTV-News Corp courtship became complicated threesome following statement of EchoStar Chmn. Charlie Ergen that EchoStar- DirecTV merger would offer stockholders greatest value. Ergen, who has sat quietly on sidelines during DirecTV-News Corp. talks, reiterated his desire to work deal with long-time DBS rivals. “Obviously, for shareholders, the greatest synergy and therefore probably the value is some kind of combination between DirecTV and EchoStar,” Ergen told analysts in earnings conference call Thurs.

MDS Americas is to announce today (Mon.) that it received experimental license from FCC to test terrestrial wireless service to operate in 12.2-12.7 GHz band, which is used by DBS satellites and is sought by Northpoint. Company said new service would provide high-speed data and video services, including Internet service. MDS said its system, which has been operating for 5 years in 20 international markets, avoids interfering with DBS because signals are beamed from towers at lower vertical angles than DBS satellites. FCC permit, good through May 1, 2002, is to allow company to demonstrate technology.

Kevin Mulloy, ex-McKinsey & Co., named vp-strategy and business development, Intelsat… Craig Senia, ex-Netstream Communications, appointed gen. mgr., Cox Business Services Central Coast… Tricia Kinch becomes FCC Comr. Tristani’s permanent confidential asst. after replacing Yvonne Hughes on interim basis… Al Blinke, consultant, appointed news dir., KDKA-TV Pittsburgh.

Verizon expects to file Sec. 271 petitions at FCC for 6 states by end of year, Senior Vp Thomas Tauke said Thurs. at news briefing. He told reporters that company was “now hopeful” that petition for Pa. long distance entry would be filed in “early summer,” probably in June, and remaining 5 between autumn and end of year: Del., N.H., N.J., R.I., Vt. Filing time depends of when regulators in respective states finish their testing and other reviews. For example, Tauke said, Pa. PUC is targeting June 6 to prepare letter to FCC on Verizon 271, meaning PUC expects Verizon to make federal filing before that day. In answer to question, Tauke said he didn’t expect to make multistate applications, although New England states would be “me-too” applications based on Mass. filing approved recently by FCC. Rest of states, including Md., Va., W.Va. as well as D.C., probably will be sent to FCC next year and all should be approved by end of 2002, following that timetable, he said. On another issue, Tauke defended Verizon’s support of provision in Tauzin-Dingell broadband bill that would eliminate line sharing for broadband fiber loops. In first place, he said, it applies only to fiber, not copper, loops. In addition, DLECs still can lease entire fiber loop, they just can’t gain access to broadband piece separately, Tauke said. Line sharing is useful only to competitors offering ADSL service, he said, most prominently Covad. Those using XDSL need entire loop, he said. In answer to question, he said it was true that it was more expensive for ADSL provider to lease entire loop rather than obtain piece of it through line sharing. However, trade-off is that bill would enable ILECs to deploy fiber to consumers more quickly, he said. In addition, requiring ADSL competitors to lease entire loop means they would be able to offer both data and voice, which is another public policy benefit, he said. In answer to question, Tauke said he thought Senate concerns about Tauzin-Dingell bill focused primarily on portion of bill that would ease Sec. 271 restrictions for data traffic. Asked whether company would support Senate legislation that dealt instead with other issues such as deployment of fiber, Tauke said Verizon certainly wouldn’t be opposed to such measure. “It’s Tauzin-Dingell or nothing,” he said.

Bryan Tramont, legal adviser to FCC Comr. Furchtgott-Roth, moves to Wireless Bureau May 14… Changes at Pearson TV N. America: Brian Harris resigns as CEO, replaced by Tony Cohen; Catherine Mackay adds title of deputy CEO; David Lyle named pres.-entertainment… Carla Stratford, ex-Backweb, appointed senior vp-N. American sales, RealNetworks… Gene Fein, ex-ABC In Concert, appointed pres., DotClick… Craig Hagopian, ex-SkyTel Communications, joins Air2Lan as vp-sales and distribution… Michael Cascio, ex-NBC News, appointed exec. vp-gen. mgr., Animal Planet… Tim Simeone, ex-Villanova U., becomes assoc., Harris, Wiltshire & Grannis… David DeMoranville, ex-Qualcomm, named vp- operations, Narad Networks… Olin Kropog, ex-ConnectSouth, appointed vp-gen. mgr., Cox Business Services, New Orleans… Michael Schroeder withdraws name from consideration for EchoStar board, citing ties to competitor… Bernard Picot, ex-Proxim, named vp-sales, Latin America, Caribbean and Europe, Middle East and Africa (EMEA), Western Multiplex… Srinivasan Rangarajan, ex- Indian Space Research Organization, becomes senior vp-bcst. networks implementation, WorldSpace.

Verizon outlined series of interim funding and “credit enhancements” for Genuity Thurs. that total $2 billion. Verizon said financing agreements were in line with FCC order approving Bell Atlantic-GTE merger last June. Verizon bolstered its credit agreement with Genuity, increasing principal amount that Genuity may borrow to $900 million from $500 million. It also extended to Dec. 31 maturity date of all borrowing under credit pact, from original date of May 31. It’s furnishing Genuity with credit enhancements that will provide access to long-term capital sources with maturities of up to 5 years. In joint statement, Verizon co- CEOs Charles Lee and Ivan Seidenberg said recent FCC approval of company’s application to sell long distance in Mass. moved company “one step closer to clearing the necessary regulatory hurdles that will allow us to bring Genuity back into the Verizon family.” They said: “Genuity is facing the same challenges that many other companies are experiencing due to the economic slowdown and this support gives it additional financial stability to strengthen its ability to grow and compete.” Genuity also reported first-quarter results, disclosing plans to trim its work force 12% (more than 600 employees. Chmn.-CEO Paul Gudonis said company hit its revenue and earnings targets. But he said: “We have seen enterprise customers extend the time to make buying decisions as they justify the return on investment associated with their IT spending plans. This has resulted in slower new order growth in the current period.” Genuity said revenue was up 20.8% in first quarter to $299.5 million but net loss deepened 39% to $291.3 million. Domestic revenue from AOL dropped 20% from year-ago period and was flat with 4th quarter of last year. Genuity attributed trend to contractual price reductions reached late in 1999 that took effect Sept. 1. It said total AOL revenue now made up 32% of its total, down from 46% year ago.

As expected, FCC at agenda meeting May 10 will consider reforming universal service system for rural carriers. Commission will vote on whether to accept plan proposed by Rural Task Force (CD May 3 p7). It also will consider 2 other items: (1) Notice of Proposed Rulemaking to determine whether rule barring cross- ownership of newspapers and TV should be eliminated or modified. FCC Comr. Furchtgott-Roth told reporters at media breakfast Thurs. that he had “great skepticism about the value of cross-ownership rules, particularly those not statutorily based, and newspaper cross-ownership is not statutorily based.” (2) Proposal to remove “unnecessary regulatory barriers to the introduction of new wireless devices using spread spectrum and other digital technologies.” As part of that item, FCC will review staff’s denial of application for equipment certification filed by Wi-LAN.

Some wireless technology developers are recommending FCC set aside 5 GHz of spectrum or more when Commission finalizes proposal for service rules for spectrum at 92 GHz. Expectation is that as early as this fall FCC will launch rulemaking, although industry already has been bouncing ideas off Commission for what developers would like to see in that spectrum. On issue whether band should be made available on unlicensed basis or via licenses, panel organized by Wireless Communications Assn. (WCA) has floated idea of hybrid approach that would license some segments and allow others to be unlicensed at more restricted power levels, said Donny Burt, vp-advanced technology, e-xpedient/CAVU. Among “last mile” technologies that can be offered in that band, developers said, are gigabit ethernet-based systems that can connect buildings and extend metropolitan area networks.

TV affiliates aren’t seeking FCC enforcement action against networks, Network Affiliated Stations Alliance (NASA) said in letter to FCC Chmn. Powell. As result, it said, NASA petition (CD March 9 p2) shouldn’t be treated as restricted proceeding because that would “deprive members of the public of the opportunity to comment” on it. “NASA did not seek to pursue… complaints against the networks or seek forfeitures,” NASA lawyers said. “Its goal was, and remains, a stronger, fairer, healthier network/affiliate relationship.” Affiliates want FCC to rule on questions such as whether terminating affiliate status upon station sale or requiring carriage of network programming violate FCC rules, they said. Letter said “procedural formalities” of enforcement process weren’t needed and “would inject a punitive element.”