Cal. PUC approved Pacific Bell’s plan to end transition agreements with 13 small incumbent independent telcos for terminating carrier-of-last-resort obligations for intraLATA toll service. Under PUC order, neither Pac Bell nor incumbent small telco is required to provide intraLATA toll service if at least one interexchange carrier is willing to provide toll on presubscribed basis. Where no IXC is willing to serve a small telco’s area, small incumbent must continue to provide toll. PUC order frees Pac Bell from paying $37 million annually to small telcos under transition agreements, and PUC said Pac Bell could pocket savings. Order also requires small incumbents to set implementation schedule for intraLATA presubscription balloting. Small incumbents must adopt National Exchange Carrier Assn. switched access rates for small telcos, but without common line access rate element. Any revenue shortfall resulting from elimination of common line element may be made up from state high- cost fund, PUC said.
Changes in office of Rep. Goodlatte (R-Va.): Chief of Staff David Lehman leaves to join Hall, Green, Rupli, where he will work on technology and telecom issues; Legislative Dir. Ben Cline promoted to replace him, Shelley Hanger advanced to legislative dir… Heidi Blumenthal, ex-office of Rep. Dunn (R-Wash.) joins Americans for Tax Reform to lead telecom lobbying… ABC TV Stations Pres. Walter Liss resigned, no replacement named… Trevor Walton, ex-independent producer, appointed senior vp- original movies, Lifetime… Jeffrey Benrey promoted to vp-mktg., iVast… William Doherty, Online Policy Group, named online activist, Electronic Frontier Foundation… Esther Dyson, EDventure Holdings, elected to Real User board.
Wink Communications signed deal with Bell ExpressVu to offer interactive TV service to Canadian DBS subscribers. Bell ExpressVu will introduce Wink’s free service to one million homes over 5 years, starting later this year. Bell ExpressVu, which now has 725,000 subscribers, said it and Wink also would develop and deploy TV commerce applications.
Pioneer said it has sold one million Voyager digital cable set-top boxes since making its first box in 1999. It also said it has deployed 1.3 million copies of its interactive TV navigation software.
Pacific Century CyberWorks Japan said it had set up new CS Now unit to enter satellite broadcasting.
U.S. Air Force supported Space Commission report released Jan. 11 (CD Jan 12 p9) that warned of space-borne threats to U.S. and already is implementing its recommendations, said Maj. Gen. Brian Arnold, dir.-space and nuclear deterrence in Air Force Secy’s. Acquisitions Office. Commission was headed by Donald Rumsfeld, who resigned when President Bush nominated him for Secy. of Defense. Among recommendations is realignment of space programs of Air Force and National Reconnaissance Office.
AOL Time Warner sent letter to FCC recently certifying that merged company “has not entered into any agreement with AT&T” that gives any of former’s ISPs exclusive access to AT&T cable systems or that affects AT&T’s ability to offer “any rates, terms or conditions of access” to independent ISPs. Commission required certification as part of its merger approval.
Vodafone Pacific (VP) said it submitted $11 billion proposal to acquire Cable & Wireless Optus (CWO), 2nd largest wireless operator in Australia. Combined entity would have 51% of Australian market. As part of deal, VP told Australian Competition & Consumer Commission it would sell one million customers to rival Hutchinson Telecommunications to allay anticompetitive concerns. Transfer of customers would reduce new entity’s market share to 43% and increase Hutchinson’s to 10%. Proposal to acquire CWO is to be funded primarily by issuance of Vodafone Pacific shares. Discussions between VP and CWO remain at an early stage with no announcements were expected for several weeks, Vodafone Group said.
News Corp. Chmn. Rupert Murdoch and Pres. Peter Chernin were seen making rounds of Capitol Hill Fri. “They were in our office today,” said Ken Johnson, spokesman for House Commerce Committee Chmn. Tauzin (R-La.). “It was a courtesy call mostly,” he said. “They expressed some of their concerns about copyright issues, as well as broadcast ownership issues.” Johnson said one issue definitely not discussed was this week’s hearing on networks’ election night coverage. “Everyone agreed that it would not be appropriate to discuss it prior to the hearing,” he said.
GM board has “provisionally” approved sale of DirecTV to News Corp. Chmn. Rupert Murdoch, who reportedly has “shaken hands” on deal, but it will take 2 weeks to finalize contract which still must be signed, lawyer close to talks said. Source said Hughes Electronics board was scheduled to meet soon to discuss deal, which would create $70 billion global satellite network controlled by Murdoch and News Corp. Comcast was only other serious bidder, but eased up after initial discussions because of potential “regulatory problems,” source said. Murdoch confirmed last week that talks were under way, but neither company has confirmed that deal is imminent. Until deal is signed, Hughes Electronics said it would continue in talks with other parties. Under proposed agreement, News Corp. would have 35% of combined company, with Hughes retaining 65%, source said, and News Corp. Chmn. Rupert Murdoch would be largest shareholder.