Request by Verizon Wireless last week that FCC postpone 700 MHz auction received broader wireless industry backing Wed., with submission of comments by Cellular Telecommunications & Internet Assn. (CTIA) supporting postponement. CTIA reiterated arguments made by Verizon that delay until Sept. 6 was warranted, in part to allow enough separation between current PCS auction and start of 700 MHz bidding. CTIA also cited factors such as additional time needed by bidders to prepare for first FCC auction that would use combinatorial bidding. “Conducting the auction under the existing uncertainty would devalue the 700 MHz spectrum and increase the likelihood that the American public would not realize the full economic and public benefits of a 700 MHz auction,” CTIA said.

To date, Starband hasn’t issued official comment on letter to subscribers posted on Web site Tues. apologizing for problems of sluggish download and upload speeds of 2-way satellite Internet service. Letter was posted following “numerous complaints,” customer service representative told us. Letter said: “We hear you and we want to apologize for any inconveniences this may have caused.” Starband promised to perform network maintenance and upgrade areas of its network in next several weeks, with result that users should see “gradual improvements” in service. Starband also extended 30-day return policy through Feb. 28 and said customers who purchased receivers directly from company would receive $50 credit. DISH customers will be mailed 50 DISH dollars that can be used on next payment statement. Spokeswoman wasn’t available for comment.

Andrew Corp. said Wed. net sales increased 20% to record $280.5 million in fiscal first quarter ended Dec. 31, up from $233.6 million in same quarter year ago. Net income climbed 25% to $20.9 million, up from $16.8 million.

Jonas Neihardt promoted to head of Washington office, Qualcomm… Wendy Cutler, ex-USA Networks, appointed dir.-member services, Cable TV Ad Bureau… Randy Livingston, ex-OpenTV, becomes vp-business affairs and CFO, Stanford U… Barry Boniface, ex-Cypress Communications, named vp-corporate development, BellSouth… David Coler promoted to COO, National Decision Systems…Michael Jordan, exec. chmn., Clariti Telecommunications International and ex-CBS, elected to ScreamingMedia board.

FCC issued call for comments Wed. on use of unbundled network elements (UNEs) to provide exchange access service. Agency said it wanted more information to help it determine whether ILECs should make combinations of UNEs available to other carriers that wanted to use them instead of tariffed access service. Agency said last year it planned to seek comment in early 2001. Among questions: “Is the exchange access market economically and technically distinct from the local exchange market” and if so “are requesting carriers impaired in their ability to provide special access services without access to loop-transport combinations.” Comments are due 30 days after notice is published in Federal Register. (CC Doc. 96-98).

Viacom completed its previously announced purchase of BET Holdings II for $3 billion in stock and assumption of debt. Under new structure, BET founder Robert Johnson will remain chmn.-CEO of BET, reporting to Viacom COO Mel Karmazin. Debra Lee will stay on as BET’s pres.-COO. BET also will keep its home in Washington.

In Demand signed deal with AtomFilms to offer some of latter’s short films to digital cable operators and subscribers on video-on-demand (VoD) basis, starting in March. Companies said AtomFilms would make available 10 movie titles, as well as compilations of 5 comedy and action shorts, TV series episodes and other programming. Deal comes after In Demand signed several VoD licensing agreements with Comedy Central and Court TV.

Provision of entertainment is merely incidental to cable operator’s demonstrated function of transmitting clear, viewable signal, N.Y. State Supreme Court Appellate Div. ruled in overturning state Tax Appeals Tribunal’s finding that 2 state cable operators were taxed properly as general business as opposed to transmission corporations. Acting on petition challenging tribunal’s finding by NewChannels and Upstate Community Antenna, court in 5-0 decision termed as “entirely irrational” tribunal’s conclusion that transmission was merely means by which cable operators conveyed their products to subscribers and therefore was incidental to their actual business of providing entertainment. Primary basis for tribunal’s conclusion that petitioner’s weren’t engaged in transmission business, court said, stemmed from its belief that focus of cable service wasn’t transmission of various signals but provision of entertainment. Court said record made plain that cable operators: (1) Have limited capacity to manipulate signals they capture from cable programmers and transmit to subscribers. (2) Have no control over content of signal received aside from getting “rid of ghosts,” clarify signal or amplify it. (3) Can’t dictate when or how many times particular program will be broadcast. (4) Can’t sell ads on local or premium channels they offer. With exception of local origination programming they are required to carry, petitioners offered no original programming, court said. NewChannels and Upstate Community Antenna filed suit after tribunal upheld state Dept. of Taxation & Finance decision to assess deficiencies against 2 companies on ground that they should have filed tax returns as general business corporation rather than transmission corporation.

FCC issued order Wed. requiring incumbent LECs to make their directory assistance databases accessible to competing directory providers. Agency said it was essential for competitive directory providers to have access to those updated databases. Because ILECs derive their databases from their telephone service order processes, they continue to maintain control over most listings, FCC said. Commission said access must be on nondiscriminatory basis and be available at reasonable rates. CLECs often don’t have resources to provide their own directory assistance so they depend on those alternative providers, FCC said in order. However, Commission said ILECs didn’t have to grant access to national or “nonlocal” directory assistance databases because ILECs didn’t have monopoly control over them. Agency also resolved some outstanding issues relating to access to subscriber information by Internet-based directory publishers. It said Internet publishers should have same nondiscriminatory access and reasonable rates as other directory providers. Commission also concluded that publishers of telephone directories on Internet shouldn’t be restricted in how they displayed or allowed customers to access such data. Like several other orders issued this week, this one was approved on Fri. and included then-FCC Chmn. Kennard’s vote.

Nextel is buying 900 MHz Specialized Mobile Radio (SMR) spectrum from Arch Wireless for $175 million plus agreement to invest $75 million in preferred stock. Nextel, which dropped out of FCC’s C-block PCS auction in recent weeks as prices climbed, said it planned to advance $250 million in loans to newly created Arch subsidiary that would hold 900 MHz licenses until transfers were approved, which Nextel expects will be finalized in 6 months. Nextel Pres. Timothy Donahue said agreement would give company 20 MHz of SMR spectrum in 800 and 900 MHz bands in 52 of top 100 markets. Arch Chmn. Edward Baker said decision to sell SMR spectrum was result of company’s upgrade of its 2-way network, which is designed to increase capacity. As result, SMR licenses would be redundant to its spectrum requirements, he said. Arch has 5 narrowband-PCS licenses. Separately, Fitch assigned B+ rating to Nextel’s $1.25 billion senior note offering. Fitch said rating reflected company’s “strong operating performance,” improving credit measures, strong liquidity position. Fitch said those positive factors were “somewhat offset by an increasingly competitive wireless industry and uncertainty with respect to Nextel’s possible participation in the upcoming 700 MHz auction.”