U.S. Supreme Court agreed Mon. to enter long-brewing dispute over whether federal courts can review state PUC decisions that arise when they arbitrate interconnection disputes between competitors and ILECs. Although Telecom Act allows carriers to appeal PUC arbitration decisions to U.S. Dist. Courts, PUCs have questioned whether that violates 11th Amendment of Constitution, which gives states immunity from being sued in federal courts. Issue has found its way to several U.S. Appeals Courts, with most ruling that immunity issue didn’t apply. However, 4th U.S. Appeals Court, Richmond, ruled last month that there was immunity problem, indicating conflict among appeals courts. Until that decision, Supreme Court had refused to hear cases involving Telecom Act immunity issue. NARUC official said Supreme Court’s change of heart may be result of that conflicting 4th Circuit decision. High court will hear case brought by Ill. Commerce Commission -- Mathias v. WorldCom. High court said it would consider all 3 issues that states had raised in their various appeals: (1) Whether PUC’s enforcement of previously approved interconnection agreement was “reviewable by federal court.” (2) Whether PUC lost its immunity if it accepted “Congress’s invitation to participate in implementing a federal regulatory scheme” that included potential federal court review of its actions. (3) Whether so-called “ex parte Young exception” applies in arbitration cases.

Mobile providers face a “growing labyrinth of U.S. and foreign regulation” of wireless location-based services and must integrate customer data privacy protection and management into their business plans if they want to survive, Forrester Research said in report. Companies using new wireless technologies, particularly those that provide mobile location tracking, should establish chief privacy officers and develop companywide privacy policies to stem “mounting customer anxiety,” Forrester said in report, Surviving the Privacy Revolution. “We are in the early stages of a sweeping change in attitudes that will fuel years of political battles and put once-routine business practices under the microscope,” said Forrester analyst Jay Stanley.

GE American Communications is on verge of being bought by Luxembourg’s Societe Europeenne des Satellites (SES) for $4.5-$5 billion in cash and stock, Reuters said. Even though SES has had most detailed discussions with company, it said, there are other bidders, including EchoStar, Intelsat, Loral.

Motorola gave details of more than $1 billion in cash it had raised since start of year from selling off investments in wireless operators in 5 countries -- Brazil, Egypt, Israel, Jordan, Pakistan. It plans to sell stakes in Hong Kong and Mexico that could provide up to another $2 billion in cash or stock by 3rd quarter, Motorola said. Sales involved: (1) 34% investment in Brazil’s Global Telecom to its owners, including Japan’s DDI. (2) 100% of it stake in Egypt’s MobilNil to France Telecom. (3) 50% stake in Israel’s Pelephone to Shamrock Holdings. (4) 26% position in Jordan’s FastLink to Cairo-based Orascom. (5) 30% of Pakistan’s Mobilink, also to Orascom. Last two transactions are expected to be completed soon, Motorola said. Carrier said it also planned to sell its stakes in other wireless companies, although it didn’t announce details. Motorola’s other wireless investments include stakes in wireless operators in Argentina, Azerbaijan, Dominican Republic, Honduras, Lithuania, Uruguay. Deals are part of its effort to eliminate its interests in wireless carriers that date back as far as 1985. Motorola initially took stakes to drive wireless growth outside U.S., to woo wireless equipment customers and to deepen relationships with existing customers, company said. Company began wiping out such investments in Oct.

There’s no requirement that long distance companies must interconnect with CLECs unless FCC imposes specific order and prescribes “economic terms associated with such obligation,” Sprint argued in reply comments filed with FCC March 2. Comments were in proceeding exploring whether long distance companies could refuse to purchase access services from certain CLECs. Sprint asked for declaratory ruling after U.S. Dist. Court, Alexandria, Va., asked for FCC input. Furthermore, said Sprint: “The Commission consistently has taken a market-based approach to the offering and provision of CLEC access service, which permits and encourages IXCs [interexchange carriers] to shift their access business to and from access service providers based on cost considerations.” Issue stems from long distance companies’ refusal to pay access to CLECs who set their fees much higher than ILEC market rates.

Verizon is now 4th largest long distance company in U.S., having just hit 5 million customer mark, Co-CEO Ivan Seidenberg said Mon. at Credit Suisse First Boston conference in N.Y. He said company was aiming for 6.4 million by end of year as it gained Sec. 271 approval in more states. Current customer base includes former GTE states and N.Y. where it won Sec. 271 entry year ago. FCC action is expected soon on Mass. application, and Verizon plans to file applications for N.J. and Pa. soon, he said. Seidenberg also told investors that Verizon was on track to meet financial targets announced in Feb., including revenue growth in 8-10% range for year and similar gain in earnings per share. He said company’s predictions were conservative because they already factored in soft economy. On wireless side, company now has 27.5 million customers, with 50% of them using digital technology. Seidenberg predicted that regulatory environment would go through “enormous changes” with new Administration and new FCC Chmn. Powell. He said he expected Powell to go from old FCC’s habit of “managing market share and picking winners and losers” to “letting the marketplace pick winners and losers.”

Spanish-language Telemundo TV Network is using FCC procedures in effort delay debut of Azteca America as 3rd U.S. Hispanic network, official of Azteca said. Comment was in response to Telemundo petition -- charging potential interference to existing stations -- to Commission to reconsider staff grant of Pappas Telecasting’s purchase of CP for Ch. 54 KIDN-TV Avalon, Cal., in L.A. market, to be affiliate for Azteca America. Planned network is co-owned by Pappas and Azteca Mexico and plans late-spring start. L.A. affiliate is “critical” to its success, Azteca said.

European Commission (EC) cleared Vodafone purchase of Irish wireless carrier Eircell, saying transaction didn’t raise competition concerns. Vodafone’s acquisition of Eircell, which is controlled by Ireland’s incumbent operator Eircom, marks its entry into Irish mobile market, EC said. That market already has competitors such as Esat Digifone, part of British Telecom group, and Meteor, which is about to begin operations. EC said Eircell didn’t serve U.K., where Vodafone competes with 3 other operators. In Dec., Vodafone unveiled plan to buy Eircell for $4.11 billion in stock.

Hide-and-seek meets equestrian event with Global Positioning System (GPS) as catalyst for “geocaching” challenge as part of 2nd annual MBNA Foxhall Cup May 3-6 in Atlanta. Participants will use hand-held GPS device to find hidden “caches,” or prizes, as organizers post location coordinates on Internet that participants download.

N.C. Utilities Commission (NCUC) directed N. American number administrator to release exchange prefix in 336 (Winston-Salem) area code to N. State Telephone even though company normally wouldn’t be entitled to more numbers under state’s number conservation policy. N. State requested exchange prefix in Greensboro for exclusive use by Guilford County govt. and its subsidiary agencies, but administrator rejected request on ground company wasn’t within 6 months of using up its existing number supply in 336. NCUC said exception was justified for N. State “to meet a specific customer requirement.”