Top federal telecom policymakers warned state regulators to be cautious as federal govt. and states evaluate telecom policy 5 years after Telecom Act’s passage. In speech to NARUC Winter Committee Meeting in Washington Wed., new FCC Chmn. Powell said state and federal policymakers needed to “focus on new rules for a new network” rather than policies based on “legacy costs.” Senate Communications Subcommittee Chmn. Burns (R-Mont.) said main task facing regulators was “to square the business world with the consumer world,” securing both consumer benefits and business investment opportunities in telecom. House Commerce Committee Chmn. Tauzin (R-La.) cautioned against making politically expedient policies that distorted utility service markets by concealing true costs.

Fourth U.S. Appeals Court, Richmond, should rehear Internet copyright infringement suit because its decision would place undue burden on Internet service providers (ISPs), according to amicus brief filed by Inktomi, U.S. Internet Industry Assn., Verizon. Appeals Court in Nov. decided RemarQ Communities must remove allegedly copyrighted material from its service even though copyright holder, adult Web site ALS Scan, didn’t comply with all conditions of Digital Millennium Copyright Act (DMCA). Decision means ISPs would be “caught between the Scylla of facing potential liability under the copyright law and the Charybdis of ensuring their obligations to their users and the automated, high-speed nature of Internet operations,” amicus brief said, and “seriously undermines the safe harbor provision” of DMCA. It said DMCA notice provisions requiring ISPs to remove copyrighted material was result of “an arduously negotiated notice and takedown procedure” by which Congress carefully balanced interests of parties. Appeals Court said RemarQ was provided with adequate notice of copyright violation, even though notice didn’t meet 3 of 6 requirements. “A notice lacking these elements forces a service provider to individually inspect and guess which of literally thousands of postings in a given news group are infringing,” amicus brief said. Appeals Court said ALS “substantially complied with the notification requirement.”

Gemstar-TV Guide International announced long-term carriage agreement with Canadian Cable Systems Alliance for its Gemstar Prevue Interactive program guide. Agreement, which comes just week after Gemstar signed 10-year carriage pact with Charter Communications in U.S., will give Gemstar’s program guide access to more than one million Canadian cable homes. Terms weren’t disclosed.

Wireless and broadcasting industries and their regulators were caught offguard Wed. when Bush Administration seemed to propose mysterious multibillion-dollar initiative to hasten broadcasters’ departure from analog spectrum. White House buried section in tables in back of “budget blueprint,” which otherwise didn’t mention FCC or telecom issues even once. By end of day Wed., our sources still were trying to figure out exactly what policy shift was being contemplated. White House and OMB didn’t return calls for explanation. Fuller budget book with line items and explanations isn’t expected until April.

Sen. McCain (R-Ariz.) introduced low-power radio bill (S-404) aimed at reversing “anti-low-power FM [LPFM] radio language” attached to appropriations legislation last year. Bill would: (1) Enable FCC to license LPFM stations and reject licenses only for stations “whose transmissions are actually causing harmful interference to a full-power radio station.” (2) Require FCC by Feb. 23, 2002, to complete all necessary rulemakings implementing full-power stations’ transition to digital broadcasting. (3) Direct FCC to identify stations causing interference and how LPFM stations could resolve interference problems.

Disney Co. said it bought 50% of US Weekly magazine from Wenner Media, price not announced. Disney committed to several on-air and online tie-ins with magazine, including entertainment awards special on ABC TV Network, segments on Good Morning America featuring US Weekly reporters and segments on entertainment as part of local news by ABC-owned stations.

Cablevision Systems said it would create new division to focus on development of wireless voice and data services, expand its commercial cable telephony offerings and explore delivery of IP telephony service through digital cable set-top boxes. Cablevision said new division would combine its Lightpath, wireless and IP telephony assets into single unit. Long-time Cablevision executive Joseph Azznara, most recently pres. of company’s N.Y.C. metro area operations group, will head new unit as COO. At same time, Cablevision Pres. James Dolan said he would assume direct oversight of company’s cable, Internet and retail operations groups.

Orbcomm will be in hands of new owner after company completes auction this week, CEO Scott Webster said. Auction for Orbital Sciences subsidiary closes Wed., with winning bidder to be announced by U.S. Bankruptcy Court, Wilmington, Del., Fri. Webster said Orbcomm would be in improved financial position once auction was complete because it would be free of debt. “We're now in a difficult situation, but I'm optimistic we'll emerge leaner and unencumbered,” Webster said. New owners will “acquire a business that’s running smoothly,” he said. Orbcomm expects new owner to reach settlements with creditors as part of purchase agreement, official said. Orbcomm had sought bankruptcy protection in Sept. and on Feb. 8 announced plans to conduct auction through bankruptcy court.

Sea Launch and Boeing Expendable Launch Services have signed memorandum of understanding to offer backup services to customers using launchers of each company. Agreement will allow Boeing spinoffs to remain independent and “still compete” in marketplace, while providing “essential backup services” for Sea Launch Zenith 3SL and Delta 4 rockets, Boeing official said. “If we can accommodate any Sea Launch programs with a Delta vehicle, or vice versa, that’s the gist of it,” Boeing spokesman said. Boeing Delta 4 Vp Dave Schweikle said it also was matter of branding in marketplace. He said most people in satellite industry already think of Boeing and Sea Launch as “same company” so providing backup services wouldn’t be problem in branding efforts. Companies also said they would move toward “joint marketing effort.” Boeing owns 40% of Sea Launch, but Boeing spokesman said companies had separate operations: “We try to maintain the distinction in that respect… those are completely different operations.” Steps also are meant as way for companies to keep pace with rivals International Launch Services and Arianespace, which offer backup services to customers. Backup arrangements allow customers to switch launch vehicles if rocket designed to carry its payload is unable to fly.

Pegasus Communications completed its reorganization by merging its current businesses under one holding company with same name, with old company, renamed Pegasus Satellite Communications, becoming subsidiary of new entity. Pegasus Broadband Communications will operate broadband and TV Internet access as subsidiary under Pegasus Satellite, which also will control DBS and broadcast TV. New holding company said all new stock had been tendered by 5 p.m. deadline Feb. 21.