Colo. Gov. Bill Owens (R) named state Sen. Jim Dyer (D) to succeed PUC Comr. Robert Hix, whose term has expired. Appointment will be effective when current legislative session ends May 9. Political observers said move could pave way for Republicans to regain control of Senate in 2003, where Democrats currently hold one-vote majority. Senate vacancy committee has 10 days after Dyer’s resignation to name interim replacement to serve year remaining in his term. Otherwise, Owens would make appointment. Dyer is considered popular lawmaker who served 6 terms in House. This is his first Senate term, representing district that normally strongly favors Republicans.

Pa. PUC Thurs. ordered functional separation of Verizon’s wholesale and retail local service operations, but stopped short of dismembering carrier. PUC voted 5-0 for order requiring Verizon to establish functionally separate wholesale and retail divisions within current Pa. operating company. However, PUC refrained from ordering full structural separation, which would have required establishment of 2 independent business units with separate managerial and financial structures and transfers of assets and employees between new units.

BellSouth reiterated its Jan. 31 guidance that calls for 7-9% increase in earnings per share in 2001. Company said at analysts’ conference Thurs. that it expected most growth would occur in 2nd half. First half will see expenses for DSL and expansion into Colombia’s wireless market, company said in SEC filing also issued Thurs.

European Commission (EC) wants to step up lobbying efforts in Congress to raise awareness of foreign policy, regulatory, trade issues of concern to European Union (EU) member nations, particularly “digital economy” issues affecting EU businesses and consumers. EC in March 20 letter to European Council said “six- monthly cycle of EU/US Summits has not developed its full potential,” thus requiring “more action-oriented” transatlantic dialogue. “Appropriate conditions need to be set up, including in the field of jurisdiction, online dispute settlement procedures and the fight against cybercrime,” it said. “Common issues in relation to the restructuring of the information and communications industry, including a review of regulatory frameworks, also remain high on the agenda.” It said European Parliament (EP) and member nations could more effectively “promote the European agenda” by coordinating Hill lobbying efforts. “Indeed, this will be particularly important in dealing with the new Administration and Congress, not least to ensure that wherever possible the member states and the [EC] act together in Washington and speak with one voice,” it said. Letter acknowledged existing parliamentary links via EP/US Interparliamentary Assembly and Transatlantic Legislators Dialog activities, but said “deepening of contacts” between EP and both houses of U.S. Congress could “help overcome the regulatory differences and misunderstandings which often lie at the heart of bilateral problems.”

Wink Communications and Beyond Z Interactive Media signed agreement for latter to develop interactive TV (ITV) applications for Wink’s enhanced TV service. Beyond Z, which already has worked with Wink on several ITV features, said it would develop new applications for Wink. Terms weren’t disclosed.

S.D. PUC Comr. Laska Schoenfelder (R), 63, died Wed. of cancer. She was first elected to PUC in 1988 and last Nov. was elected to her 3rd six-year term. Earlier, she held positions with S.D. local and state govt. agencies. She had been member of NARUC’s Telecom Committee since 1991 and was one of 4 state members on Federal-State Joint Board on Separations. FCC Chmn. Powell said FCC was “grieved” to hear Schoenfelder had died. “I considered her a great public servant and an invaluable asset to the nation in our implementation of the [Telecom Act] and particularly… universal service,” he said. Survivors include husband, 5 children.

As promised, Skybridge announced Thurs. plans to start offering satellite broadband services to ISPs this year (CD March 21 p6). Skybridge CEO Pascale Sourisse said decision “broadens the operational scope” of company through use of geostationary satellites where capacity will be leased. Sourisse said Skybridge still was fully committed to development of low-earth orbiting satellite constellation: “The introduction of services this year will create a strong foundation for launching the LEO constellation. We know demand is there.”

E.spire filed voluntary petition for Chapter 11 bankruptcy protection Thurs. in U.S. Bankruptcy Court, Wilmington, Del. Spokeswoman said Judge Peter Walsh was scheduled to review CLEC’s petition March 27. Chapter 11 protection will enable e.spire to obtain funding it needs to continue running company and freedom to act more quickly to restructure its bond debt, she said. E.spire Chmn. George Schmitt said company would “use this period to complete the reorganization of our finances and the equitization of our bondholder debt.” He said company had been working closely with committee of bondholders and had “received strong indications of support for a rapid restructuring.” Meanwhile, E.spire shares fell 26.6% Thurs. to new 52-week low of 34 cents per share. Nasdaq halted trading of e.spire stock at 3 p.m. Thurs., saying it had requested “additional information” from company. Trading will remain suspended until company has “fully satisfied” request for more information, according to Nasdaq, which didn’t provide more details on request.

AT&T defended decision to charge customers $1.50 fee when local and long distance charges are combined on one bill starting in April. AT&T joins WorldCom and Sprint, which recently introduced same fee. At issue are cases where long distance charges are added to bills sent out by local telephone companies. “No one has to pay the fee,” AT&T spokesman Mark Siegel said. This month AT&T informed residential customers by letter and postcard that they could avoid charge by accepting two bills or online billing -- latter option is sweetened by $1 off monthly bill plus $25 certificate to online retailer Amazon.com. With separate bill, AT&T plans to market other services. “We want to communicate directly with our customers,” Siegel said.

Assn. of Communications Enterprises (ASCENT) told Ore. PUC that Qwest still hadn’t shown it could pass Sec. 271 open market checklist. Group, which represents reseller interests, said Qwest had failed to show it really was providing unbundled network elements (UNEs) to local competitors on nondiscriminatory basis as Telecom Act requires. ASCENT said recent Qwest filing to demonstrate 271 compliance was based on statement of generally available terms (SGAT) on UNE availability. It said SGAT was fine for demonstrating potential compliance but PUC needed facts on Qwest’s actual performance in providing wholesale service to Ore. CLECs. Group urged PUC not to support Qwest long distance entry until carrier passed operation support system testing and submitted record of sustained 271 compliance.