FCC modified methodology used to assess contributions carriers make to federal universal service support mechanisms by reducing interval between accrual of revenues and assessment of contributions based on those revenues. To base assessments on revenue data more reflective of current market conditions, interval was reduced to 6 months from one year. Agency said existing process “may place carriers with decreasing interstate revenues at a competitive disadvantage as compared to carriers with stable or increasing interstate revenues.” Some carriers had complained that basing contribution on year-ago revenue was unfair. They said if their revenue went down in current year they would end up paying greater percentage of their current revenue into universal service fund than other carriers. Agency said it still thought current methodology was “competitively neutral” and met Telecom Act but “we conclude that reducing this interval will be superior to the current methodology by basing assessments on revenue data that are more reflective of current market conditions.” FCC said it decided against alternative of basing contributions on current revenues as AT&T sought because it would increase reporting burdens on carriers.

Broadcasters will begin considering setting up new technology development center to help manage technology transition as result of meeting Tues. at NAB, according to Greg Schmidt of LIN TV, acting co-pres. of MSTV. He said there was “strong consensus” at meeting of broadcast executives and officials of NAB and MSTV that “we need to put some resources in” to create entity that “over the next few years could end up being something quite substantial.” Schmidt and MSTV staff will begin drawing up tentative business plan for center for final decision later, he told us. “We're seeing a sea change in broadcasters’ relationship to technology,” Schmidt said. “There is a strong feeling that we need to be more aggressive in managing technology development.” One official said new technology center could function similarly to cable’s CableLabs. Broadcasters already have Advanced TV Technology Center, which originally was created to test DTV, and it could have role in process, official said. In addition, MSTV staffers will seek approval from financial contributors to recent VSB-COFDM to use some remaining funds to begin working on ways to improve DTV technology, Schmidt said. Meeting was intended to inform broadcasters about improvements in DTV transmission system, and no final decisions were made, we're told.

FCC Wireless Bureau asked for comments on Cingular Wireless request for waiver of spectrum cap, seeking exclusion of cap for up to 1.5 MHz of 900 MHz specialized mobile radio spectrum. Spectrum at issue is held by its subsidiary Cingular Interactive. Comments are due April 3, replies April 13. Cingular argued that spectrum it wanted excluded from cap was well below recognized amount of spectrum needed to compete in commercial mobile radio services (CMRS) market and was used only in conjunction with separate national mobile data market that couldn’t be used for broadband services. Cingular said spectrum was used to compete against narrowband competitors that weren’t covered by CMRS cap of 45 MHz in markets, except for rural areas where it was 55 MHz. Cingular told FCC that waiver would permit it in nonrural markets in which it already had 25 MHz of cellular spectrum to obtain 2nd 10 MHz broadband PCS license without topping spectrum cap.

FCC gave Verizon pricing flexibility for special access services in 43 markets and 3 states. Action enables company to offer dedicated point-to-point service to large businesses and long distance carriers based on market prices rather than rates set by regulation. Verizon said FCC order, issued Wed., gave company more complete “Phase 2” flexibility for state of Del. and 10 other markets such as Norfolk, Va., Reading, Pa., Charleston, W.Va. Phase 2 flexibility lets companies offer service freed of rate and price cap rules although ILECs must file “generally available tariffs” on one day’s notice. Partial “Phase 1” flexibility was granted in 33 remaining markets plus Md. and Vt. Those with Phase 1 flexibility cover host of large cities such as N.Y.C., L.A. (in ex-GTE territory), Philadelphia, Boston, Washington. Companies with Phase 1 flexibility still must file contract tariffs and term discounts but need do so only on one day’s notice. They also must continue offering price cap- constrained tariffed rates for those services. FCC made determination based on whether there was adequate competition in markets. “Competition in the special services market is fierce, with dozens of companies in the hunt,” Verizon Senior Vp Thomas Tauke said. FCC also granted pricing flexibility to SBC for special access and dedicated transport services in 41 markets. In 13 markets, such as Flint, Mich. and Green Bay, Wis., SBC gained Phase 1 flexibility. In 28 markets, including San Francisco, Dallas, Houston and Indianapolis, FCC offered Phase 2 flexibility.

Motorola unveiled plans to slash its personal communications sector (PCS) work force by 7,000, part of cost-cutting in its wireless infrastructure operations. Company said it had reduced wireless employees by 12,000 since Dec. Latest round of reductions is expected to take place in next 2 quarters and to result in special charge against first- and 2nd-quarter earnings. Other streamlining steps Motorola has taken in last 2 quarters include reducing wireless handset portfolio, trimming overall supply chain, shuttering some manufacturing plants. Motorola PCS Pres. Mike Zafirovski said: “We anticipate growth, but at a slower pace. We must continue to adapt our overall cost structure, work force and production levels to a more competitive business model.”

Telecom Americas and Bell Canada International (BCI) unveiled plans to buy additional 65% stake in 2 Brazilian wireless carriers for $580 million. Telecom Americas and BCI are buying shares in Telet and Americel from Telesystem International Wireless (TIW) and group of Brazilian pension and investment funds. Transaction will give Telecom Americas and BCI combined 81% of both companies, with Brazilian development bank BNDESPAR holding rest. TIW sold its minority stakes in 2 carriers to BCI and Telecom Americas for $153 million. Before deal, TIW had 16.3% interest in companies. Americel has nearly 400,000 subscribers in central and western parts of Brazil. Telet operates in southernmost state of Brazil, Rio Grande do Sul, and has 524,000 subscribers. Telecom Americas is owned by BCI, Mexico’s America Movil, SBC.

FCC denied complaint filed by Total Telecommunications Services (Total) and Atlas Telephone against AT&T. Commission said provisions of Communications Act cited by Total and Atlas didn’t prohibit AT&T from refusing to purchase terminating access services from Total or from blocking calls from AT&T customers to sole end-user customer to which Total terminated traffic. Agency then granted AT&T’s claim that 2 companies engaged in “unreasonable scheme to inflate the access fees charged to AT&T.” FCC concluded that Atlas created Total “as a sham entity designed to impose increased access charges on calls made to Audiobridge,” Total’s only customer. Audiobridge provides customers multiple voice-bridging service commonly known as chat-line service.

Teens and younger kids now watch more ad-supported cable programming during prime time than shows from Big 4 broadcast networks, Cable Ad Bureau (CAB) said in its latest analysis of Nielsen Media Research data. CAB study said basic cable networks had averaged 11 prime-time rating and 38 share of teen TV viewers through first 21 weeks of TV season, compared with 10.4 rating and 35.9 share for combination of ABC, CBS, NBC, Fox. Similarly, CAB said, basic cable networks had averaged 10.5 prime-time rating and 44.1 share of kids 2-11, as opposed to 7.2 rating and 30.3 share for 4 major broadcast networks. Both sets of figures were sharp reversals from 8 years ago, when broadcasters still commanded lion’s share of both markets, CAB said.

Qwest announced Qwest CyberVoice Interconnect wholesale voice-over-Internet protocol (VoIP) offering. Company said new terminating service enables carriers, Internet telephony service providers, Internet service providers and Web portals to deliver voice calls over Qwest’s nationwide OC-192c IP backbone and CyberCenter hosting facilities. CyberVoice Interconnect will deliver hybrid voice and data services with applications specific to IP networks, such as speech recognition, voice portals, conference bridging and Web messaging, Qwest said.

FCC granted petition of W.Va. PSC for waiver of calendar year 2001 state certification requirements for high-cost universal service support in areas served by non-rural carriers. Waiver will enable Verizon to receive federal high-cost universal service support. FCC said waiver was given to ensure consumers in those high-cost areas were not harmed by W.Va. Commission’s failure to timely file required certifications before Oct. 1, 2000. PSC “inadvertently” filed certification information Oct. 23, missing deadline.