Controversy over NPR’s recent acceptance of underwriting credits from govt. of Kuwait has caused enterprise to think anew about guidelines for “appropriate method” of accepting underwriting from sovereign govts., NPR Pres. Kevin Klose told board meeting March 8 in Washington. He said there was hardly any public comment when NPR accepted underwriting credit from German govt. 3 years ago to mark anniversary of collapse of Berlin wall, but there had been “much public comment” on underwriting credit for Kuwait to mark 10th anniversary of its liberation from Iraq. Those credits were completely consistent with NPR’s underwriting guidelines, he said. Saying guidelines on accepting underwriting from sovereign govts. need to be revisited, Klose said it wasn’t matter of independence or integrity of NPR’s news operations, which always had been protected and insulated from influence of any underwriting. “It is in the area of the perceptions” that guidelines needed to be clarified, he said, and issue will be resolved in way to ensure that “perceptions and reality are congruent” in public mind about NPR’s values. Klose defended NPR’s proposal to lease wall at its Washington headquarters for mural art. “It is a perfectly reasonable use of a blank wall,” he said, and NPR was doing what Congress and its board instructed it to do: to explore “reasonable ways to be self-sufficient as possible and as responsible as possible to our own values.”

Ariz. Corp. Commission postponed decision on proposed $43 million Qwest rate increase. Agency acted Wed. after long debate on whether to allow only half as large an increase and what services should be given flexible pricing. Commission didn’t set definite date for taking up matter again. At issue is Qwest’s proposal to settle $100 million rate case filed in 1998 by Qwest’s predecessor U S West. Qwest said it would settle for $43 million increase if it won flexible pricing for 80 services subject to competition, including directory assistance, Internet access, voice messaging. Comr. Mark Spitzer proposed company be allowed only $23 million boost. Chmn. William Mundell questioned some proposed Qwest rates for competitive services, such as carrier’s plan to boost directory assistance to 85 cents from 47 cents per call. Settlement also is opposed by local exchange competitors and by Ariz. Residential Utility Consumer Office, which contend Qwest shouldn’t get rate boost or pricing flexibility.

E-rate program won’t be folded into block grants to states along with Education Dept. technology programs in Bush Administration’s initial proposal to Congress, but that doesn’t mean it won’t meet that fate later, Education Dept. spokeswoman told us. E-rate supporters were cheered this week by Education Secy. Roderick Paige’s comments at House hearing that e-rate wouldn’t be included. But spokeswoman told us that was just for logistical reasons, since e-rate wasn’t funded by Education Dept. and no final policy decision had been made. “We are considering - - and continue to consider -- if the e-rate can or should be consolidated with other technology grant programs,” she said. “The fact that the e-rate is not in the Department’s jurisdiction makes the considerations different.” Several House Telecom Subcommittee members defended e-rate at Thurs. hearing. Ranking Commerce Committee Democrat Dingell (Mich.) said tinkering with e- rate would be “disaster for schools and libraries everywhere, but particularly those in the neediest areas of the country who have come to rely so heavily on this program.” However, Dingell also renewed his concerns that some telecom carriers might be over- collecting for e-rate and pocketing the difference. Subcommittee ranking Democrat Markey (Mass.) also backed e-rate, as did several witnesses. Meanwhile, Dingell said he would reintroduce his bill to use money from phone excise tax (estimated $6 billion per year) to pay for digital divide trust fund while excise tax was phased out over period of several years. He said some of that money could be used to strengthen NTIA’s Technology Opportunity Program (TOP), which is favored by Subcommittee Chmn. Upton (R-Mich.). Dingell said he would reintroduce bill with Rep. Towns (D-N.Y.) “in the near future” and hoped to work with Upton on it. He also took indirect swipe at FCC Chmn. Powell, who has questioned existence of meaningful digital divide. He said Powell’s father, Secy. of State Colin Powell, was member of board of PowerUp, “whose explicit mission is to close the digital divide. So it appears that at least the elder Powell would agree the digital divide issue is an important one.” Upton said he would focus on several education technology programs this year, not just e-rate and TOP. He singled out Instructional TV Fixed Service (ITFS) licenses, saying they were “very much on our Subcommittee’s radar screen as our nation grapples with spectrum management issues.” Full Committee Chmn. Tauzin (R-La.) said he wanted “every child in Louisiana to have access to the Internet” before he leaves Congress. However, he also said it was “important to understand” that closing digital divide “is not strictly dependent upon federal support,” praising companies such as WISH-TV that make voluntary contributions of Internet access.

Globalstar USA and Caribbean announced Business Reach multiline service plans were available starting Thurs. for customers who subscribed to 5 or more lines of mobile satellite phone service, reducing number of lines from 25. System includes progressively lower per-min. pricing for specific levels of use.

Infinity Bcstg. acquired 1% of shares of DG Systems in return for its 50% stake in Musicam Express, giving DG 100% of Musicam. DG owns proprietary satellite and Internet transmission technology.

Sen. Burns (R-Mont.) said Congress needed to address rules governing telco access to public lands to ease carrier deployment of communications infrastructure including fiber cable and wireless towers, he told USTA conference Thurs. USTA attendees asked him whether Congress planned to take up issue, which they said could facilitate broadband service deployment, particularly in western states such as Mont. Burns said roadblocks industry faced in getting swift approval for public rights-of-way weren’t limited to western states, pointing out that W.Va. Sen. Byrd (D) had expressed similar concern on difficulties faced by telcos in eastern states. “I think we're going to need legislation to address all public lands,” Burns said.

A wrong that needs to be righted in U.S. political campaigns is “the out-and-out bribery that affects the body politic,” 60 Minutes founder and Exec. Producer Don Hewitt said. In accepting First Amendment Leadership Award from Radio-TV News Directors Foundation Wed. night, he said “the Founding Fathers would turn over in their graves if they knew their precious First Amendment was being used” to justify existing campaign practices and fund- raising. Today, he said, “the No. 1 qualification to run for office in the world’s greatest democracy has become in the television age not the ability to govern but the ability to raise money.” First Amendment “doesn’t give you the right to holler ‘fire’ in a crowded theater,” he said. “Why does it give you the right to holler ‘money’ in a Buddhist temple?” Presidents now “frequently spend more time at fund-raisers than they do at the business of running the government,” Hewitt complained. Politicians can’t get elected without “amassing a [money] war chest and you can’t amass a war chest without being beholden to people who want something from you.” Contributions from anybody doing business with govt. should be banned, he said, “because any way you cut it, that is bribery.” Solution isn’t to give candidates free time, he said: “Just give them news time when they do something newsworthy. That is our only obligation.” If TV were to lose the estimated $1 billion candidates paid for air time in 2000 (CD March 7 p8), Hewitt suggested TV industry start taking “hard liquor commercials” as possible replacement: “Jim Beam and Jack Daniels did less harm to America than [Democratic strategist] Dick Morris and [former White House attorney] Jack Quinn.”

Financials: (1) Metromedia Fiber Network reported 4th- quarter revenue climbed 136% to $61 million as net loss dropped 90% to $134.8 million. Company offers optical IP network infrastructure. (2) CLEC Electric Lightwave saw 16% increase in 4th quarter revenue to $63 million and loss improved slightly to $33.8 million from $35 million year ago.

Public Bcstg. Caucus in House under leadership of Rep. Blumenauer (D-Ore.) has 60 members, NPR Legislative Dir. Kathy Dole told meeting of NPR board’s Membership Committee March 7. Calling formation of caucus positive development, she said it was bipartisan and afforded opportunity to provide detailed briefing on issues such as LPFM. Besides Blumenauer, 6 founding members of caucus are Reps. Wamp (R-Tenn.), Lowey (D-N.Y.), Houghton (R- N.Y.), Markey (D-Mass.), Morella (R-Md.). Caucus held its first briefing March 5 for staff on significant issues affecting public broadcasting community and Congress. “The staff briefing… was a positive kickoff,” Blumenauer said. Caucus supports 4 broad principles: (1) Strong and financially sound noncommercial, universal, educational broadcasting service. (2) Policies that ensure continued growth and vitality of public broadcasting programs and services. (3) High level of financial support for public broadcasting’s transition to digital. (4) Strategies and policies that allow public broadcasting community to take full advantage of new technologies. Things are quiet for public radio on legislative front, Dole said. LPFM bill brought by Sen. McCain (R-Ariz.) has no co-sponsors yet and no hearing is scheduled.

FCC Wireless Bureau said it modified its universal licensing system (ULS) to help auction winners file for tribal land bidding credits. Changes include screens to signal intent to seek credit when filing long-form applications for license at close of auction, ULS ability to select tribal lands to be served in each market, submission of required tribal govt. certification. Last June, FCC created tribal land bidding credit program for future auctions to provide incentives to wireless carriers to serve those lands. Eligible bidders for credit commit to use license to supply service to tribal lands that are unserved by any carrier or have wireline subscription rate equal to or below 70%.