Under agreement with Motorola, Telefonica Moviles plans to take management control of Mexican cellular operators Bajacel, Movitel, Norcel and Cedetel. Companies, which operate in northern Mexico, will be acquired shortly by Telefonica Moviles, terms not disclosed. Motorola owns 100% of all operators except Movitel, in which it has 10%. Together, companies cover area with 20 million population. Telefonica Moviles said it was taking management control of 4 units while regulatory approval of acquisitions was pending. Approval process is expected to be completed in first half, companies said. Purchase agreement was reached in Oct. by Telefonica, Telefonica Moviles, Motorola.

Head of National Telephone Co-op Assn. (NTCA) urged President Bush to appoint FCC members who would take rural interests into consideration. In March 2 letter, NTCA CEO Michael Brunner said it was not enough “to designate a ‘rural commissioner’ in name only as has been the case in the past.” There’s been no shortage of qualified commissioners and staff dedicated to Telecom Act’s competitive principles, he said. “Unfortunately, the same cannot be said with regard to their commitment to the Act’s dual mandates of ensuring sufficient universal service support and comparable services available to both rural and urban America.” There needs to be balance between competitive principles and rural needs, he said.

Corning announced it planned to eliminate 825 jobs in manufacturing, less than 5% of total employees. It said Thurs. that its expected revenue growth in photonics business now was 50%, down from 75-90%. Industry weakness has reduced demand for its photonic products but fiber business remains strong, company said.

European Telecom Network Operators’ Assn. (ETNO) raised concerns over vote by European Parliament (EP) last week on main framework proposal that would refine telecom deregulation efforts established in European Union (EU). Part of proposal would retool definition of incumbent operator, now characterized as carrier with 25% market share (CD Feb 28 p4). Changes in definition would focus on significant market power. ETNO criticized change as significant, saying most regulatory obligations would fall only on operators that met that dominance definition. “The EP has voted to replace the Commission’s proposal with an incoherent text lacking objective criteria,” ETNO Dir. Michael Bartholomew said. “It fails to provide the legal certainty which is a precondition for new investment in the sector.” ETNO, which represents 44 large European telecom carriers, said it was concerned that EP action could lead to “over-regulation” of sector. However, it praised portion of EP measure that would support ability of European Commission to block decisions by national regulatory authorities if they conflicted with EU law or general goals of EU telecom policy. Bartholomew said that was important safeguard because national telecom authorities would be given more discretion under pending regulatory proposals.

Cable One, subsidiary of Washington Post Co., and AT&T Broadband completed previously announced trade of cable systems. Under swap, Cable One now owns systems serving 149,000 subscribers in Ida. communities of Boise, Idaho Falls, Lewiston, Pocatello and Twin Falls and Ontario, Ore. AT&T gets cable systems serving 107,000 subscribers in Modesto and Santa Rosa, Cal., and undisclosed amount of cash.

Sirius Satellite Radio last week rebutted concerns raised by AT&T Wireless (ATTW) that Project Angel could be hampered by interference from high-powered repeaters that satellite digital audio radio (DARS) operators plan to use. Sirius disputed ATTW claim in earlier ex parte filing (CD Feb 28 p1) that “mandating multiple 2 kw repeaters to mimic the coverage of 40 kw repeaters would reduce interference.” AT&T, which is using Wireless Communications Services (WCS) licenses to deploy fixed wireless broadband Project Angel, said it didn’t object to low-power repeaters at or below 2 kw. Company and other WCS licensees have raised concerns about interference on 40 kw terrestrial repeaters that satellite DARS operators could use to fill in gaps in satellite coverage. “ATTW has known since the time it acquired its WCS spectrum that it would have to operate without causing interference to satellite DARS,” Sirius told FCC. “ATTW conveniently forgets that its service rules were changed to protect satellite DARS transmissions and that these restrictions reflected the fact that the Commission designed WCS to protect satellite DARS, not the other way around.” Sirius contended ATTW misrepresented record by telling FCC plans for high-power repeaters were new “and justify late intervention in this proceeding.”

Twelve key lawmakers backed owners of broadcast programming in letter to FCC on copyright protection technology required in cable set-top boxes. They criticized “5C” standard proposed by Digital Transmission Licensing Administrator (DTLA), saying it wouldn’t protect rights of broadcast program owners enough to give them incentive to make programming available on digital channels. “The digital transition will slow considerably if the technology proposed by the DTLA is implemented,” group warned. They said cable and other subscription programming would be protected against copies being distributed over Internet, but over-air programming wouldn’t get same level of protection: “Program producers will be reluctant to license their programs for digital broadcast distribution in the face of widespread acts of infringement over the Internet… These producers will inevitably move their programming over to such channels where protections are clearly stronger… This is bad for both localism and consumers who depend on free, over-the-air television.” Signatories included House Commerce Committee Chmn. Tauzin (R-La.) and ranking Democrat Dingell (Mich.), Telecom Subcommittee Chmn. Upton (R- Mich.) and ranking Democrat Markey (Mass.), Consumer Protection Subcommittee Chmn. Stearns (R-Fla.) and ranking Democrat Towns (N.Y.), Rep. Pickering (R-Miss.), Senate Commerce Committee ranking Democrat Hollings (D-S.C.), Communications Subcommittee Chmn. Burns (R-Mont.) and Sens. Breaux (D-La.) and Boxer (D-Cal.).

Comtech Telecommunications announced Comtech EF Data won order Fri. for satellite earth station transceivers and modems from Globecomm Systems. Equipment will be used in transportable satellite earth terminals, serve as remote earth stations.

FCC action on ILEC-CLEC reciprocal compensation could have positive effect on wireless providers as well, Legg Mason said in report released Fri. Report said wireless providers such as VoiceStream, AT&T Wireless and Sprint PCS would see most benefit. Nextel, which is more business-customer oriented, might experience more neutral outcome because its outbound-to-inbound ratio of calls was only about 3-2 and more than 40% of its traffic was wireless-to-wireless, which isn’t subject to reciprocal compensation. Paging companies might have negative impact because more of their traffic flows inbound. Report by Research Analyst Blair Levin said wireless companies paid wireline carriers $400- $500 million per year because more wireless calls were terminated by wireline carriers than other way around. Report said FCC appeared to be leaning toward 2-part plan to ease ILEC-CLEC reciprocal compensation problems that would (1) Set caps on outbound-to-inbound traffic ratio eligible for reciprocal compensation and (2) bill above-cap traffic at 0.1 cent per min. Levin estimated that traffic imbalance was about 4-1, meaning typical ILEC sent 4 calls to CLEC for every call it received. Report said FCC could set 6-1 cap on payment eligibility in first year, 2-1 cap next year. That would mean CLEC revenue would decline only about 7% first year but 40-50% in 2nd year. Such changes probably would set precedent for wireless carriers, “given the FCC’s desire to harmonize regulation in a convergent world,” Levin said.

RSL Communications said Fri. it suspended interest payments totaling $22 million on notes while it restructured its note obligations, working with committee representing stockholders. Company said it also indefinitely deferred payment of interest and repayment of principal on $100 million loan extended to company late last year by RSL Chmn. Ronald Lauder. Company said it was evaluating “strategic alternatives, including actively pursuing the sale of numerous subsidiaries.” RSL is facilities-based communications company with hq in Bermuda.