Verizon in Mass. proposed replacement for current price cap regulation plan that “reflects the growth of telecom competition” in that state, where 850,000 lines are served by CLECs. Proposed plan would roll separate 49-cent residential Touch Tone dialing into basic local rate and then cap residential basic exchange rate for 3 years. Measured local usage charges also would be capped for 3 years at present level. There would be revenue cap on nonbasic residential services that would permit revenue-neutral rate changes. Rates for all other retail services would be deregulated. Wholesale services would remain under current regulations. Service quality performance plan with rebates to customers for service quality shortfalls is proposed. Accompanying retail rate proposal would give regulators 2 different options for bringing intrastate access charges in line with recent interstate reforms in CALLS plan adopted by FCC. First option would cut switched access charges to interstate levels, with revenue loss offset by $1.63 increase in residential basic exchange rate. Second option would phase in access cut to interstate levels over 3 years, with smaller annual residential rate increases. Access plan also would allow Verizon to make additional $1 monthly residential rate increase over next 4 years, providing it made offsetting decrease in residential intrastate toll rates.

FCC will take up long-awaited notice of proposed rulemaking (NPRM) at agenda meeting Thurs. that explores how to reform existing intercarrier compensation rules by developing unified regime for how carriers pay each other. Also on agenda is Mass Media Bureau presentation on status of transition to DTV broadcasting from analog and “various actions and proceedings associated with the transition.” Finally, Commission will consider report and order to resolve dual network rule (MM 00- 108). NPRM issued last June proposing to change part of broadcast ownership rule that precludes ownership of UPN or WB networks by ABC, NBC, CBS or Fox. Change is seen as laying groundwork to let Viacom-CBS retain ownership of UPN TV network.

New book on international telecom policy offers “cynical” look at efforts by U.S. and European Union regulators to implement World Trade Organization (WTO) Basic Agreement on Telecom Services, according to its preface. The Telecom Trade Wars was written by Lawrence Spiwak, ex-FCC attorney, and Mark Naftel, partner in London law firm Norton Rose, both involved with Phoenix Center think tank. Authors said they hoped to give “uplifting story about how the world was marching over the ‘bridge to the 21st Century’ and into the information society.” Instead, they discovered 2 “disturbing trends” in telecom regulation: (1) “Growing telecom trade war that is dangerously close to spinning out of hand.” (2) “Growing politicization of… the regulatory process generally.” In both cases, they found “many regulatory initiatives post-WTO harm rather than maximize consumer welfare.” Book was published late last year but hasn’t been widely publicized. (Hart Publishing, 485 pp., www.hartpub.co.uk).

Mass. Attorney Gen. Thomas Reilly urged FCC to deny Verizon’s petition to offer long distance service in Mass., saying company’s prices for unbundled switching still were not based on Total Element Long-Run Incremental Costs (TELRIC). In April 9 letter to FCC, Reilly said he first raised concern about Verizon’s switching costs in comments he filed in Oct. “Instead of adopting permanent UNE [unbundled network element] rates that are demonstrably TELRIC-based,” Reilly said, “Verizon continues to rely on New York-based UNE prices that were not investigated by the [Mass. Dept. of Telecom & Energy], do not reflect Massachusetts costs and which are now the subject of an ongoing New York investigation.” Reilly also expressed concern that “Verizon does not provision its special access service… circuits to competitors on a neutral and nondiscriminatory basis.” CLECs need those circuits to provide high-speed, large capacity telephone service, he said. April 16 is deadline for FCC to act on Verizon’s petition.

Seeking to differentiate cable industry from broadcasters, NCTA said its MSO members “will comply voluntarily” with FCC’s equal employment opportunity (EEO) rules even though they recently were struck down as unconstitutional by U.S. Appeals Court, D.C. In resolution unanimously approved by its board Wed., NCTA adopted “self-enforcing version of the FCC rules,” committing each cable operator to conducting at least 2 annual diversity recruitment efforts. Cable operators also agreed to spell out details of their outreach programs in their public inspection files. NCTA said it was instituting certification program to ensure compliance with voluntary guidelines. Board approved funding of 6 National Assn. of Minorities in Cable (NAMIC) scholarships to CTAM’s Advanced Executive Program at Harvard Business School in June. Unlike broadcasters, who fought EEO rules in court, NCTA has firmly backed FCC’s new regulations. In brief statement Thurs., FCC Chmn. Powell praised NCTA board for its resolution committing cable operators to “a program of voluntary outreach to minorities and women to fill job vacancies.” Stating that “diversity in the work force is good policy and good business,” Powell said “much can be accomplished through this kind of voluntary program.”

OpenTV CEO Jan Steenkamp promoted to chmn. and becomes CEO, MIH Technologies, with James Ackerman stepping up from COO to succeed him as OpenTV CEO… Ex-Sen. Slade Gorton (R-Wash.), becomes of counsel, Preston, Gates & Ellis… Reed Hundt, ex-FCC chmn., nominated for election to Intel board… Robert Raben, ex- U.S. asst/attorney gen., established Raben Group, legislative consulting and lobbying practice in Washington… Ari Fitzgerald, ex-deputy chief, FCC International Bureau, becomes partner, Hogan & Hartson Communications Group… Changes at Cox: James Sutton to head company’s operations in N. Virginia; Paul Golden takes over mktg. and sales strategy in Atlanta; William Fitzsimmons promoted to vp-accounting and financial planning… Changes at Western Multiplex: Rita Khayat-Toubia, ex-Hoechst Marion Roussel, named chief information officer and vp-information systems; Martin Christmas, ex-Shasta IP-Nortel Networks, appointed vp-Asia-Pacific Sales… Patricia Russo, ex-Lucent, named pres.-COO, Eastman Kodak… Changes in NAB board: Madelyn Bonnot, WVUE New Orleans, joins to complete term of Cindy Velasquez for 10 weeks before starting her own term… Jim Mooney, ex-TradeOut, appointed exec. vp-COO, Nextel Communications, replacing Steven Dussek… Matt Mills, ex-senior vp-gen. mgr., WJMN-FM, Boston, named vp-gen. mgr., Greater Boston Radio Group, Greater Media… Changes at Initiative Media N. America: Carolyn Bivens promoted to pres.- COO, James Bell advanced to pres.-COO, IM121… Donna Taylor, ex- Maya advertising, named public affairs mgr., National Telephone Co-op Assn… Elizabeth Eisenstat, ex-Sykes Communications, appointed vp-service to industry, Space Foundation.

National Federation of the Blind (NFB) joined in asking U.S. Appeals Court, D.C., to overrule FCC on video description of TV programming (CD April 9 p9). NAB, NCTA and MPAA earlier appealed same rules. NFB petition provides no details, simply calling rules “arbitrary” and “not in accordance with law.”

Paxson lined up support of 10 more broadcasters in its bid for FCC reconsideration of rules for vacating Ch. 59-69 (CD March 20 p6), clearing them for use by wireless and other industries. Paxson said additions meant petition was supported by licensees of 53% of analog TV stations operating on channels.

Goal of revised wireless service quality bill (HR-1531) introduced by Rep. Weiner (D-N.Y.) is to aid consumers in making educated service choices, not impose additional govt. regulations on industry, congressional staffer said. CTIA spokesman recently acknowledged existence of service problems such as dropped calls, fast busy signals and dead spots (CD March 22 p3), but attributed problems to scarce spectrum and tower siting restrictions. Weiner revised bill to require FCC to collect wireless consumer complaints, rather than mandate that agency create minimum standard, as initial version proposed. “What our bill is about is keeping consumers informed”, Weiner staffer said. She said Weiner would be open to discussions with industry to explore possible remedies to infrastructure problems. Weiner held news conference March 21 to discuss bill, but delayed introducing it until April 4 to address office staffing issues, she said. Legislation, which also would create FCC toll-free complaint hotline, has nine co- sponsors. Wireless industry source said no co-sponsors were on House Commerce Committee or Telecom Subcommittee, where last year members also didn’t provide significant support for similar Weiner bill, leading to its death.

FCC seeks comment on BellSouth, SBC and Verizon petition asking Commission to rule that high-capacity loops and dedicated transport shouldn’t be subject to mandatory unbundling (CD April 10 p5). Requiring ILECs to offer high-capacity loops to CLECs at deep discounts no longer is necessary because there are plenty of companies offering such circuits, carriers said. Comments due May 10, replies May 25.