Excite@Home said it would cut 500 jobs in next 3 months as it drops its MatchLogic subsidiary, which handles interactive marketing services. Redwood City, Cal., company said it was trying to reduce operating costs. Selling units that “do not contribute financially or strategically to the broadband access business is the right direction for our corporate viability,” CEO Patti Hart said. In recent weeks, Excite@Home, nation’s largest Internet-over-cable service provider, has been exploring its options to try to keep afloat. Company raised concerns on Wall St. with statement in its release: “There can be no assurance that such funding can be attained or that any restructuring will be successful.” Investment management firm Promethean Group recently called in $50 million in notes, but didn’t force Excite@Home into bankruptcy court after it failed to make payment (CD Aug 28 p7). Promethean said it wouldn’t act while negotiations continued.

Citing lack of detail and potential harm to consumers, state regulators are balking at Verizon Wireless request to FCC that agency forbear from local number portability (LNP) requirements for mobile carriers. In comments on Verizon request, several PUCs argued that failing to require LNP by carriers would lead to “unreasonable” rates and remove protections for subscribers. FCC rules require wireless carriers to provide LNP, which lets customers keep existing numbers when switching providers in top 100 metropolitan statistical areas by Nov. 24, 2002. Verizon Wireless said it didn’t seek forbearance from separate requirement that mobile providers participate in thousands-block number pooling, which carries same deadline.

Having warned that Congress “must be vigilant on constitutional principles, not vigilantes,” Senate Judiciary Committee Chmn. Leahy (D-Vt.) said he expected to consult with House Judiciary Committee leaders to reach consensus on wiretap and counterterrorism legislation. Leahy said in domestic defense hearing Tues. that committees must move quickly but deliberately on updating Foreign Intelligence Surveillance Act (FISA), which governs electronic surveillance and investigations of agents of foreign powers: “To avoid extended proceedings or the risk that reconciliation never occurs, I intend to reach out to [House Judiciary Committee Chmn.] Sensenbrenner [R-Wis.] and [ranking Democrat] Conyers [Mich.] to see whether we might not combine our efforts in a coordinated and consolidated way from the outset to enact the best consensus measure we can design before Congress adjourns this year.”

FCC released long-awaited order that added mobile allocation to 2500-2690 MHz band and spared MMDS and Instructional TV Fixed Service (ITFS) licensees from relocation threat posed by 3G. Item was voted on Sept. 6 before departure of Comr. Gloria Tristani, but not released until Mon. Report and order added mobile allocation “to provide additional near-term and long-term flexibility for use of this spectrum, thereby making this band potentially available for advanced mobile and fixed terrestrial wireless services,” FCC said. Chmn. Powell and Comrs. Abernathy and Martin voted for item, with Tristani and Comr. Copps dissenting on mobile flexibility language. Order acknowledged technical difficulties of sharing between fixed and mobile services in band now, but said upcoming service rules would address interference issues. In joint statement, Tristani and Copps raised strong objections to extent that addition of mobile allocation to band could pose harm to incumbent MMDS and ITFS users. “It is a rush to judgment that is not supported by evidence in this record,” they wrote. Meanwhile, CTIA expressed dismay that 2.5 GHz spectrum was taken out of running for 3G at time when spectrum capacity questions still loomed.

FCC Comr. Copps said it was “incumbent on us to act as swiftly as possible” on year-old remand Commission’s Communications Assistance for Law Enforcement Act (CALEA) order by U.S. Appeals Court, D.C. Court vacated and remanded to FCC parts of CALEA order that covered 4 punch-list items that included capabilities such as custom calling. Copps’ comments were released with FCC order Fri. giving carriers until Nov. 19 to either upgrade packet networks to comply with packet-mode communications electronic surveillance under CALEA or to ask for individual relief (CD Sept 20 p1). Agency also said it would set date for all punch-list capabilities that would enable carriers to be fully compliant with CALEA by June 30. “I am pleased that the order targets a date no later than the end of this year for completion of the remand proceeding and makes this proceeding a priority,” Copps said. “I fervently hope, however, that the Commission will give this item the true priority it deserves and move forward on a date earlier than the end of the year.” Order said Commission planned to address remand “no later than year’s end.” Copps said that in past FCC had urged carriers to cooperate with law enforcement to provide information upon receipt of lawful surveillance requests. “Now more than ever, such encouragement appears to be well-founded,” Copps wrote: “The events of the past week cogently demonstrate the imperative of bringing these capabilities online as soon as possible. This is no time for ‘business as usual’ on this issue in either the private or public sectors.” Full text of order, released Fri., acknowledged development of standards on separation of call-identifying information from content for packet-mode technologies was “in a relatively early stage.” CALEA leaves development of technical requirements to telecom industry and law enforcement agencies. “The Commission may act, in response to a petition, when the industry fails to issue technical requirements or standards or, if it has done so, when parties allege that the standard is deficient,” order said. Industry hasn’t developed standard for separating call-identifying information from content for packet networks “and thus no one has petitioned us alleging deficiencies in such a standard,” order said. FCC also said it hadn’t received petition asking it to set technical requirements in that field. Commission said its decision later this year responding to remand will clarify definition of call-identifying information as it relates to punch list “and the clarification is likely to provide the necessary guidance for the packet-mode context as well.” FCC said it expected “continuing dialog” with telecom industry, law enforcers, regulators and consumers on development of new CALEA standards that would serve as safe harbor language on such issues. Order also said International Softswitch Consortium had raised concerns that carriers using that technology wouldn’t be able to meet Sept. 30 compliance deadline.

Erkki Liikanen, European Commission (EC) member who heads enterprise & information society programs, stressed in speech in Brussels Wed. that coordinated European approach was needed on 3G. “Questions such as network infrastructure sharing or the treatment of delays in fulfilling deployment obligations are being raised on a daily basis in several member states,” Liikanen said: “There is a risk of increased fragmentation of the regulatory environment in the EU [European Union] unless coordinated European approaches are sought.” While responsibility for addressing regulatory questions following auctions of 3G licenses remains with member states, Liikanen said EC can act as “facilitator and encourage the member states to seek coordinated solutions.” He said EC began dialog in April with operators, member countries and equipment providers to address remaining questions on 3G in Europe. Possibility of network infrastructure sharing, following huge sums that 3G licenses fetched in auctions in U.K. and elsewhere, has emerged in several European countries. Recently, German regulators drafted guidelines for operators interested in sharing plans, Liikanen said. Discussion of such options “may also help in defining future licensing modalities with the aim of minimizing the negative effects of fragmentation in the future and to tackle the issues related to the organization of further licensing rounds,” he said. Liikanen cited need for future licensing regulations that were flexible: “The adoption of flexible but harmonized procedures is essential to tackle rapidly changing technical and market conditions.”

Equivalent of counterterrorism bill proposed this week by Attorney Gen. John Ashcroft is being drafted in House and is expected to be introduced within one week, Rep. Gibbons (R-Nev.) said. Gibbons, chmn. of House Intelligence Committee’s Human Intelligence, Analysis & Counterintelligence Subcommittee, told us in interview late Wed. that committee members “have a great deal of interest” in Ashcroft proposal. He said House might not create version identical to that of Dept. of Justice (DoJ) proposal, but it would include “suitable language to met the needs of” FBI and CIA.

FCC turned down CTIA’s request for open-ended extension of Sept. 30 deadline for all telecom carriers to comply with packet- mode communications electronic surveillance under Communications Assistance for Law Enforcement Act (CALEA). While rejecting blanket request for more time, which Justice Dept. had opposed, Commission gave carriers until Nov. 19 either to upgrade packet networks to comply with wiretap requirements or to seek individual relief. Order, voted Sept. 18 and released Wed., also temporarily suspended Sept. 30 date for carriers to implement punch-list electronic surveillance capabilities for FBI. Agency said it planned to set date for all punch-list capabilities that would let carriers be “fully CALEA-compliant” by June 30. Action came as interest in broadening wiretap capabilities of federal govt. were receiving increased attention in wake of last week’s terrorist attacks (CD Sept 19 p3).

Verizon replaced and repaired thousands of communications circuits in time to support reopening of N.Y. Stock Exchange (NYSE), not only restoring service but doing so on one of heaviest days of trading, Verizon Co-Chmn. Ivan Seidenberg said Mon. He said 2,000-3,000 workers from throughout N.Y. state “worked day and night” over week-end and “essentially rebuilt our entire network in southern Manhattan,” damaged in last week’s terrorist attack on the World Trade Center. In addition, “hundreds of contractors” were helping dig up streets and haul out rubble, he said. Telecom capacity to NYSE is nearly 100% restored, he said. All but 1,000 of 15,000 circuits that normally provide communications were in operation now, more than enough to meet normal demand, Seidenberg said.

Consumers and telecom workers would benefit if SBC were permitted to offer long distance service in Ark. and Mo., CWA told FCC in comments filed Mon. “After exhaustive reviews,” regulators in both states determined SBC met Sec. 271 requirements, union said. In addition, SBC’s proposed performance monitoring plan offered “adequate safeguards against backsliding,” it said. CWA argued that SBC entry into long distance in those states would increase competition, particularly for residential consumers, and would “promote the important goal of [Telecom Act] to create good, high-wage jobs in the telecommunications industry.” Assn. of Communications Enterprises (ASCENT) urged FCC to deny application as “premature” because company hadn’t “fully rectified” concerns raised by Dept. of Justice and Commission in earlier application for Mo. ASCENT said SBC continued to impose “unlawful restrictions” on resale of DSL-based services and hadn’t “adequately” met DoJ’s concerns about pricing of unbundled network elements (UNEs) in Mo. Mo. Office of the Public Counsel urged rejection for similar reasons. SBC’s latest application “failed to address key questions of compliance with Sec. 271” raised earlier by FCC and DoJ, it said. SBC lowered some UNE prices in Mo. but “a disparity in prices still exists,” public counsel said.