Singapore Telecom (SingTel) offered $3.8 billion for remaining stake in Australia’s Cable & Wireless Optus Ltd., buying 52.5% from U.K.’s Cable & Wireless (C&W). Companies said transaction valued equity of Optus, 2nd largest telecom carrier in Australia, at $4.66-$5.38 billion. Deal would deconsolidate Optus and $1.08 billion of its debt from U.K.’s C&W, realizing $3.5 billion from parent Cable & Wireless. Singapore Telecom will pay parent C&W in combination of cash, reduced debt and SingTel bonds. C&W and SingTel said they expected to close deal this summer. Terms constitute prebid agreement in which SingTel agreed to accept 19.9% of Optus shares, maximum amount allowed by Australian law at this stage of deal. Optus has 4 million customers in Australia and offers wireless, data and IP services, broadband local and long distance telephony, Internet and pay-TV. Offer is conditioned on more than 50% shareholder acceptance and regulatory approvals. Moody’s placed senior unsecured and short-term ratings of debt guaranteed by Optus on review for possible upgrade. Moody’s said review would focus on likelihood that SingTel would acquire majority stake and potential impact of acquisition on its credit profile. Vodafone reportedly withdrew from bidding for Optus over weekend, with SingTel coming in with offer that was 13% above Optus closing price of $2 per share in Australia Fri.

Phone companies will be able to offer customers bundled packages of phone service and customer-premises equipment (CPE) under order FCC plans to release this week, staff member said at seminar Fri. sponsored by Progress & Freedom Foundation. FCC Common Carrier Bureau Chief Dorothy Attwood said Commission voted to approve order last week but it hadn’t been released yet. Along with eliminating restriction on bundling CPE with service, order will clarify that common carriers with their own facilities can offer bundled packages of enhanced services, such as Internet access, and basic phone service. She said order would allow consumers to take advantage of innovative packages from more companies. Attwood also announced that agency had simplified filing requirements for Sec. 271 applications, reducing amount of paperwork. Among changes: (1) Process is outlined for filing multistate applications, such as SBC’s Kan.-Okla. application that recently was approved. More multistate applications are expected so FCC clarified requirements. (2) FCC will require fewer copies of applications. (3) Amount of information in each application will be reduced, resulting in about half the paperwork. For example, instead of filing complete public record of relevant state PUC proceeding, company can file just that portion of public record on which it is relying in its application. Spokesman said agency was expecting “upwards of 10 applications” for Sec. 271 approval this year and revised document would make process smoother.

Rep. Deal (R-Ga.) introduced legislation that would remove caps and limitations on universal service support by amending Sec. 254 of Communications Act. HR-1171,referred March 22 to House Commerce Committee, is companion to S-500 (CD March 12 p6), by Sen. Burns (R-Mont.) and several rural senators. Bills would eliminate restrictions on size of high-cost support, lift caps on how much universal funding individual service providers could receive, prevent FCC from enforcing or reimposing most caps or limitations. National Telephone Cooperative Assn., which supports measure, estimates that “small, independent telecommunications carriers will lose out on $198 million this year if the caps are not removed.”

Verizon Wireless urged FCC to defer granting licenses won at C- and F-block PCS auction in Jan. until U.S. Appeals Court, D.C., rules on NextWave’s appeal. Verizon Wireless won $8.8 billion in licenses of $17 billion raised by auction, in which most formerly belonged to NextWave but were cancelled for missed payment. Earlier this month, NextWave asked agency to delay spectrum awards until D.C. Circuit issued opinion (CD March 13 p4). Verizon Wireless told FCC in its comments that nothing in NextWave request “requires the Commission to issue a stay.” But awaiting D.C. Circuit’s ruling on NextWave “before granting the applications, and allowing winning bidders up to 30 days after the public notice announcing license grants to submit their final payments, would serve the interests of interested parties and would not undermine the Commission’s goals for the re-auction,” Verizon said. It argued that agency had leeway to allow auction winners more than 10 days to pay balance of winning bids. “The presumptive period of 10 days is an unrealistically short window for bidders to amass and arrange for the transmission of billions of dollars to the Commission,” company wrote. Thirty days would provide more “reasonable time to plan,” company said. Verizon asked FCC to deny NextWave petition, which seeks deferral of auction or conditional approval. In other comments, Alaska Native Wireless (ANW), designated entity with financial backing of AT&T Wireless, challenged standing of TPS Utilicom. TPS had petitioned to deny ANW license applications, saying carrier had failed to comply with FCC rules on entrepreneur status and very small bidder status and that its application lacked “requisite candor.” ANW told FCC that TPS wasn’t party in interest on its applications because it was “eligible to bid on none of the 44 licenses for which Alaska Native Wireless has applied.” TPS didn’t present “specific allegations” needed to raise question of fact that would warrant delaying grant of applications, ANW said. It also disputed TPS contentions that AT&T Wireless had de jure and de facto control of designated entity.

Ariz. Corp. Commission granted Qwest $23.3 million net revenue increase, to come entirely from its competitive services. Decision closing 1999 rate case gave Qwest just 11.5% of $201 million increase carrier had sought originally and 50% of amount company said it was willing to settle for. Order freezes basic local residential and business rates at current levels through 2003 except for $14.4 million in mandated cuts, mostly from $11.50 reduction in residential installation charges. Qwest also must reduce intrastate carrier access charges by $5 million. Commission said Qwest could recover up to $42.7 million in additional revenues from competitive services. Rates for those services can be priced to market, except for cap on directory assistance of $1.15 per call with first call free each month. Order also imposes strict service quality requirements on Qwest. In any month where it fails 2 or more service quality categories, company must give all customers automatic $2 credit per line. Carrier also must spend $5 million on training programs for Ariz. employees on new technologies and service improvements. Program will be administered by 7-member board consisting of 3 Qwest representatives, 3 CWA union members and one neutral member picked by other 6.

AT&T filed complaint against Qwest with Mo. PSC alleging violations of terms of AT&T-Qwest interconnection agreement on provision of unbundled network element platforms (UNE-P). AT&T charged Qwest had failed to allow it to test local service provisioning through UNE-Ps. It said such testing is provided for in interconnection agreement and accused Qwest of acting in bad faith during 6 months of negotiations over UNE-P trials. AT&T asked for expedited hearing and “temporary relief,” plus penalties against telco. Qwest called complaint “totally frivolous” and denied allegations. It said it had sold 50,000 unbundled loops to Mo. CLECs, with many in UNE-P configurations. It accused AT&T of abusing regulatory process to keep Qwest from competing in long distance.

AT&T said Fri. its $135 million deal to acquire assets of NorthPoint Communications would help it move more quickly into consumer DSL market. Purchase included virtually all assets including colocation agreements, network equipment, systems and support software, 2 leased buildings in Emeryville, Cal. Not included were customer contracts, and Covad, for one, quickly announced offer aimed at signing up end users served by NorthPoint ISPs.

Wireless Communications Assn. International (WCA) is opposing petition for reconsideration filed by Satellite Industry Assn. (SIA) on 2.5 GHz that Multipoint Distribution Service (MDS) and Instructional TV Fixed Service (ITFS) licensees use. SIA petition argued that fixed wireless incumbents in 2.5 GHz could share bands with mobile satellite service (MSS). But WCA contended SIA had presented no technical information to Commission on how that could be done. Earlier this year, FCC denied another petition by SIA seeking reallocation of 2.5 GHz band to MSS licensees based on previous ITU decision. “SIA’s petition for reconsideration provides no justification for the Commission to now reverse field and cripple the ongoing deployment of MDS/ITFS broadband service solely to provide additional spectrum for the financially shipwrecked MSS industry,” WCA wrote. WCA said SIA relied on “mistaken” assumption that MDS/ITFS licensees would be deployed mostly in urban areas, away from MSS operations in less densely populated areas. “The Commission has already found that MDS/ITFS systems may be the only provider of broadband service in rural and other underserved areas,” WCA said.

Citing “current market conditions,” Proxim and Netopia said Fri. that they had “mutually agreed to terminate” proposed merger. Companies said they still would work closely, including on Netopia plan to incorporate Proxim’s HomeRF technology into its broadband routers and integrated access devices. Netopia and Proxim had announced proposed $223 million merger in Jan. They said Fri. that halting merger wouldn’t result in termination fees. “Netopia is committed to broadening its product line with wireless voice and data solutions,” Pres.-CEO Alan Lefkof said.

Legislation (HR-496) that would ease restrictions on carriers controlling less than 2% of nation’s access lines was referred to Senate Commerce Committee. House last week (CD March 22 p7) on voice vote passed measure sponsored by Rep. Cubin (R-Wyo.).