FCC determined that Time Warner (TW) was subject to effective competition in Waco, Tex., and revoked city’s certification to regulate basic cable service. Granting TW petition, Commission said company had demonstrated that Clearsource, franchised cable operator that also provides LEC service in Waco, provided comparable programming as required by LEC effective competition test. TW also provided evidence that there were no regulatory, technical or other impediments to Clearsource’s provision of cable service in Waco and that it was able to provide cable that overlapped TW’s service, agency said. TW’s petition was unopposed.

In long-form applications for C-block licenses made public last week, financial details emerged on relationships of designated entities with noncontrolling, larger carriers. Black Crow Wireless, designated entity with backing from U.S. Cellular Corp. (USCC), told FCC that Black Crow has right to require USCC to buy its interest. “Significantly, there is no corresponding ‘call’ right on the general partner’s [Black Crow’s] interest,” filing said. Petitions to deny long-form applications are due Fri. for auction of 422 licenses that closed in Jan. and raised $17 billion (CD March 1 p3). Dobson Communications said it reached PCS transfer rights agreement with AT&T Wireless. Dobson subsidiary DCC PCS won 14 licenses at auction for $546 million. Agreement with AT&T Wireless provides that if Dobson wants to sell or transfer its interest in any PCS license it won at auction it will first offer spectrum to AT&T Wireless. If AT&T Wireless declines to buy licenses, Dobson said it could sell them to any other party. Application also describes Dobson-AT&T Wireless joint venture that depends on outcome of auction. Each agreed to contribute at least one 10 MHz license in agreed-upon markets. Dobson would then retain control of venture, which would use AT&T brand. Designated entity Cook Inlet/VS GSM (CIVS), in which VoiceStream has noncontrolling interest, said VoiceStream had “neither de jure nor de facto control.” Cook Inlet won 22 licenses for $506.38 million and VoiceStream PCS was high bidder for 19 licenses for $482.65 million. Cook Inlet Wireless, subsidiary of Alaska Native Regional Corp. Cook Inlet Region, controls CIVS. Filing said VoiceStream will have contributed $149.4 million in venture and Cook Inlet 50.1% ($150 million) pending approval of license applications. If CIVS converts existing $207 million note held by VoiceStream, latter would hold 70% of equity in designated entity. CIVS also can call on VoiceStream for additional cash commitments, bringing its equity interest up to 85% but leaving CIVS in control of management authority, filing said.

Sweden’s Telia plans to buy Nokia and Siemens gear for its 3rd generation wireless infrastructure in Norway and Finland, with option to purchase equipment for Denmark. Telia signed letter of intent with companies but didn’t disclose financial terms. Letter covers country specific agreements for core network and radio access solutions. Agreement in Denmark would be subject to Telia winning license there.

Rep. Davis (R-Va.), chmn. of technology & Procurement Policy Subcommittee of House Govt. Reform Committee, sees hearings this year on progress of FTS program as “definite possibility,” spokesman said Fri. Davis, who has been critic of progress of FTS 2000 and 2001, would prefer to have hearings “sooner rather than later,” spokesman said. Davis met recently with General Services Administration (GSA) officials, including Acting Administrator Thurman Davis and GSA Federal Technology Service Comr. Sandra Bates. “The congressman expressed to GSA officials his concerns that the delays that have been encountered during the transition have jeopardized the program’s goals of ensuring the best service and the best price to government and to taxpayers,” spokesman said. Last year, Davis had raised concerns that FTS 2000 bridge contract was extended to Sprint and AT&T following failure by GSA to transition govt. agencies to new FTS 2001 agreement by self- imposed deadline of Dec. 6 (CD Dec 11 p6). WorldCom and Sprint hold combined $1.5 billion in contracts for FTS 2001. AT&T bridge contract extended FTS 2000 contract, under revised terms, for agencies that haven’t transitioned to new agreement. Qwest in Jan. filed agency-level protest with GSA over sole-source FTS 2000 interim contracts with Sprint and AT&T. In part, Qwest contended bridge contracts include rates that are on average 25% higher than those offered to agencies in fiscal 2000. As of Fri., decision hadn’t yet been handed down on Qwest protest, although one is expected shortly. When Qwest CEO Joseph Nacchio was in Washington last week to speak at NARUC winter meeting, he met with GSA’s Davis to discuss FTS, sources said.

Sen. Hillary Clinton (D-N.Y.) aggressively entered digital divide debate last week, introducing as her Senate career’s first legislation package of 7 bills that primarily would provide tax breaks and subsidies designed to encourage broadband deployment in rural areas. She said “poor Internet access” in upstate N.Y. was thought by some to be “the biggest barrier to economic barrier in the region.” Clinton’s proposals would be spread across 3 different committees, not all of which she sits on, and it was unclear how she intended them to be advanced. Her office didn’t return call. All of bills were co-sponsored by group of 9 Democrats: Sens. Baucus (Mont.), Corzine (N.J.), Dayton (Minn.), Dodd (Conn.), Leahy (Vt.), Lieberman (Conn.), Mikulski (Md.), Rockefeller (W.Va.) and Schumer (N.Y.). Among Clinton proposals: (1) $100 million program for state and local govts. to offer subsidized 15-year bonds to fund Internet access improvements (S- 426). Govts. wouldn’t have to pay interest on bonds, and preference would go to projects in underserved areas that included cooperation between govt. and private sector. Bill was referred to Finance Committee, of which Clinton isn’t member. (2) $100 million program of grants and loans for businesses that provide rural areas with Internet service, demonstrate new methods for serving rural areas or connect industrial parks and small business incubators with high-speed links (S-428). Bill went to Commerce Committee, where Clinton also isn’t member, and is co-sponsored by Sens. Bingaman (D-N.M.) and Boxer (D-Cal.) as well as other 9 Democrats. (3) Program funded at $25 million first year, $125 million thereafter, that would provide govt. expertise to help universities transfer new technologies to small businesses more quickly (S-429). Referred to Commerce Committee, bill is backed by 9 and Boxer. (4) $25 million grant for National Science Foundation to research technologies for better rural deployment of broadband (S-430). Bill was sent to Commerce Committee.

Minn. Gov. Jesse Ventura (Ind.) picked 3 finalists from 38 applicants to succeed Minn. PUC Comr. Joel Jacobs, whose term expired in Jan. but who has stayed on until successor is picked. Finalists are: Gibbon, Minn., attorney Paul Glaeser, with background in economic development; Eric Malinen, ex-FCC senior legal adviser with background in wireless services and telecom- based business development, and Colin Wightman, engineering dept. chmn. and prof. at Minn. State U., Mankato, with background in energy systems engineering.

Minority Media & Telecom Council (MMTC) inducted former FCC Chmn. William Kennard, ex-Comr. Benjamin Hooks and broadcasting pioneer John Oxendine into MMTC Hall of Fame Thurs. in reception at Verner, Liipfert, Bernhard, McPherson & Hand law firm in D.C.

Sponsor of Ark. car phone restriction bill withdrew measure (HB-1229) rather than see it defeated in House Transportation Committee, which had scheduled March 6 vote. Measure would have banned use of handheld mobile phones while driving except for calls to 911. State Rep. Kim Hendren (R-Gravette), bill sponsor, said driver distraction from mobile phones was real highway safety threat, but he expected defeat after committee members recently expressed doubt link had been proved, questioned whether advancing technology would make bill obsolete soon and criticized Hendren for singling out mobile phones from all other driver distractions. By withdrawing bill, Hendren will be able to refer it to an intersession study committee for possible action in 2003.

News Corp.’s potential acquisition of Hughes Electronics’ DirecTV could provide catalyst to jump-start moribund video-on- demand (VoD) business that’s slowly gaining interest of satellite and cable industries, officials said at conferences in N.Y.C. last week. “The thing that forces the cable industry’s hand [toward VoD] is if General Motors and News Corp. get together,” an analyst said. “If Rupert gets a hold of DirecTV, his mode will be to increase market share very rapidly and he will be very competitive and for the cable industry to move faster” toward implementing advanced services such as VoD.

In face of “current soft advertising economy,” combined local and national spot radio advertising in Jan. was down 3% from same month in 2000, which had 18% increase in radio ad sales, Radio Ad Bureau said. In Jan. 2001, local ad sales were up 1% but national spot was down 15%, RAB said. “This performance, up against the extraordinary growth in January 2000… will be a strong achievement for the radio industry when compared with other economic indicators,” RAB Pres. Gary Fries said.