As FCC Chmn. Kennard departs today, he leaves legacy as extremely decent man who might have been more effective if he were more of a politician, industry officials told us. “He is a prince of a man, honorable, honest,” said one telecom lobbyist. “But I don’t believe he’s a politician at heart and it’s hard for that kind of person to survive the political cauldron in Washington.” No one we talked with disputed Kennard’s honorable nature. Even his ideological opposite, Comr. Furchtgott-Roth, said Thurs. that he viewed Kennard’s departure to make way for Republican as “somewhat bittersweet” because Kennard was “one of the finest, most decent individuals I've ever met.”

Cost of wireless phone service dropped average of 6.9% last year in 25 metro areas, Econ One research group said. Subscribers to 600 min. per month plans saw deepest average price reductions, 10.1%, from $66.63 to $59.91, company said. Overall average in 25 cities was calculated across plans with 30, 150, 300 and 600 min. of use. Average price for all such plans dipped to $39.60 last month from $42.53 in Dec. 1999. St. Louis, Dallas and Kansas City saw biggest price declines -- 18.2%, 15.6% and 14.4%, respectively, Econ One said. Sacramento price plans increased 4%. Although average prices dropped last year, 19 of 25 cities surveyed in Dec. saw increases in monthly service plans. It said “aggressive” handset pricing could explain why services prices didn’t drop more in Dec..

FCC Wireless Bureau is seeking comments on request for expedited waiver from Nextel subsidiary FCI 900 for 5-year construction period for 900 MHz major trading area (MTA) licenses. Nextel asked for extension of deadline from Aug. 12, 2001, to Aug. 12, 2004, for all 900 MHz MTA licensees. Commission rules require MTA licensees to provide coverage to at least 2/3 of population within 5 years of license’s being granted. One option for licensees is that they can demonstrate that they are providing substantial service. Nextel has told Commission that it needs waiver because equipment isn’t yet available to integrate 900 MHz MTA licensed spectrum into existing national 800 MHz iDEN (Integrated Digital Enhanced Network). Equipment won’t be available by Aug. 12 construction deadline. Nextel also said it planned to deploy 900 MHz pico cell technology to address coverage gaps and alleviate certain kinds of interference between its 800 MHz commercial operations and adjacent 800 MHz public safety communications systems in July. Nextel told agency that deployment of that technology would be delayed if it had to build analog 900 MHz systems to meet Aug. 12 construction deadline. Bureau is taking comments on waiver requests through Feb. 1, with replies due Feb. 8. Nextel is seeking expedited consideration of request because if it doesn’t get extension, it will have to order analog equipment in time to provide required coverage by existing deadline. Neoworld Licensing Holdings, which plans to deploy national 900 MHz digital dispatch system, is seeking similar waiver of 5-year construction period. Neoworld is seeking extension until Dec. 31, 2002, citing timelines needed for equipment delivery, testing, deployment.

FCC Wireless Bureau is seeking comments on request by Verizon Wireless to postpone 700 MHz auction beyond scheduled date of March 6. Company wrote to FCC Wireless Bureau Chief Thomas Sugrue Jan. 18, asking that auction be postponed to ensure that there would be “reasonable interval” after close of current C- and F- block auction, bureau said in notice released Thurs. Verizon Wireless contended in letter that if auction were held on schedule, participants wouldn’t have enough time to “accurately assess” their interest in acquiring additional spectrum. FCC has Feb. 2 deadline for participants to file short-form applications to participate in bidding. Comments are due Jan. 24. Most recent postponement of auction came last year, when FCC agreed to move it from Sept. 6 at request of several carriers. Verizon Wireless is seeking 2-month delay as “prudent,” although it argues that longer delay is required. Verizon cited issues that remained with incumbent analog broadcasters in Ch. 60-69 spectrum that’s at stake in auction. Carrier said further notice of proposed rulemaking on possible mechanisms for clearing band in advance of DTV transition date of 2006 still was pending. “Consequently, no new band-clearing mechanisms have been established and there is no greater certainty today about the prospects for clearing the 700 MHz band than there was last summer,” Verizon wrote.

Changes at Manatt, Phelps & Phillips: Robb Watters, Internet Alliance, named to govt. and international trade and policy unit; Luke Rose, ex-staff of Rep. Wilson (R-N.M.), legislative adviser; Walter Gonzales, ex-staff of Rep. Green (D-Tex.), legislative asst… Terry Haines, ex-Boland & Madigan and former FCC chief of staff, named staff dir. and chief counsel for newly created House Finance Services Committee… Jed Petrick promoted to pres.-COO, WB TV Network… Jacqueline Bosque adds Tucson office leadership to vp-gen. mgr., Radio Unica, Phoenix… Aaryn Slafky advanced to dir.-communications, National Telephone Coop Assn… Changes at Net2Phone: Scott Anderson, ex-Exist, named exec. vp-sales; Glenn Williams moves up to exec. vp-business and legal affairs; Bruce Shoulson appointed gen. counsel; Brian Haimm promoted to exec. vp-strategic alliances… Changes at Sinclair Bcst. Group: Scott Sanders adds gen. mgr. of WRLH-TV Richmond to gen. mgr., WTVZ-TV, Norfolk; William Lane adds station mgr. to gen. sales mgr. title… Changes at OpNext: Harry Bosco, ex-Lucent, named pres.- CEO; Minoru Maeda, ex-Hitachi, appointed COO; Chris Lin, ex- Lucent, becomes senior vp-global sales and mktg… Richard Murphy, ex-Rogers Wireless Communications, named COO, congruency… Janice Cooley promoted to dir.-work force planning and talent acquisition, Cox Communications.

FCC didn’t meet regulatory flexibility requirements with rulemaking on DTV children’s TV obligations (MM 00-167), Small Business Administration (SBA) said in letter to FCC Chmn. Kennard. SBA said it didn’t question regulatory goal of improving children’s TV, but said Commission “did not describe a vast majority of the compliance requirements… and their impact on small firms. Nor did it discuss significant alternatives.” FCC should submit supplemental Regulatory Flexibility Analysis required by Regulatory Flexibility Act, SBA said. Although FCC listed rulemaking proposals, SBA said it didn’t provide adequate information about costs and alternatives of such proposals as requiring broadcasters to devote 3% of their air time to children’s programming. It said that proposal would require broadcasters to add programming whenever they added channels, and FCC didn’t provide information about cost of additional programming. SBA raised same questions about other proposals, including technical format rules, menu approach, daily core programming obligation, datacasting, providing content information to publishers and others, preemption rescheduling, commercial tie- in limits. FCC should consider alternatives such as delaying enforcement of rules because of cost to small broadcasters of DTV transition itself, SBA said, as well as setting reduced requirements for small broadcasters that have access to fewer resources. Meanwhile, in comments on rulemaking, state broadcast associations said it was too early to impose “burdensome” children’s TV rules on DTV because they “would hamper innovative uses of the digital spectrum.” State groups also said FCC didn’t have legal right to impose quantitative requirements for programming, and rules would raise First Amendment concerns. Center for Media Education immediately rejected constitutionality argument. “The public owns the airwaves, not the broadcasters,” CME Pres. Kathryn Montgomery said.

U.S. Trade Representative (USTR) Charlene Barshefsky said U.S. and European Union (EU) had put in place agreements designed to reduce barriers to nearly $30 billion in annual transatlantic trade of telecom and electronic products. Mutual recognition agreement sectoral annexes eliminate duplicative product testing requirements. USTR said that under agreement, EU regulators would recognize certificates issued by designated labs in U.S. that equipment they had evaluated met EU requirements, and vice versa. USTR said that will allow U.S. manufacturers to export products to EU without additional certifications and tests. “This landmark step facilitates electronic trade in many telecommunications and information technology products by improving market access, reducing costs and shortening the time required to market certain U.S. products in the EU,” Barshefsky said. Mutual recognition agreement annexes on telecom equipment cover terminal equipment, such as radio transmitters and information technology equipment. Annex on electromagnetic compatibility covers equipment subject to EU and U.S. radio interference and compatibility requirements.

AOL and Nokia reached multiyear agreement to market enhanced microbrowser technology and to promote wireless standards such as Wireless Application Protocol (WAP), terms not disclosed. “WAP is the most widely adopted wireless standard in the world among carriers and handset manufacturers and it makes sense for us to work to support that standard,” AOL Wireless Pres. Dennis Patrick said. Companies said agreement marked first extension of Netscape brand to microbrowser market.

Speculation about replacement for FCC Chmn. Kennard continues. Among latest rumors: (1) One telecom source speculated Thurs. that Bush might name Republican Comr. Powell interim FCC chairman while also appointing Texas PUC Chmn. Pat Wood to Commission. Under this scenario, Powell would eventually move to high antitrust enforcement post in administration, allowing Wood to take over as FCC chairman. Besides role in Dept. of Justice, source said, Powell could become new FTC chairman, replacing Clinton appointee Robert Pitofsky. Source also speculated that Republican Comr. Furchtgott-Roth would leave Commission soon, opening another seat for Bush nominee. (2) Another source said one of FCC’s Democratic seats may be filled by Ivan Schlager, former Democrat staff dir. on Senate Commerce Committee and now at Skadden, Arps, at request of Sen. Hollings (D-S.C.), ranking minority member of Committee.

Pacific Bell and Verizon are warning Cal. customers that they need to ensure state’s rolling electric blackouts don’t knock out home and office telephone systems. Although network switching and transmission systems have backup power sources, companies are cautioning that most cordless phones, answering machines and multiline phone systems in homes and offices won’t work without utility power. Companies urged customers to get at least one basic telephone that doesn’t require external power, or make sure they have backup power source for their phones and an extra charged-up battery for their mobile phones.