NARUC recommended FCC not streamline its service quality reports. In comments filed Fri., NARUC said Commission’s current reports had shown “long-term negative trend in service quality.” Cutting back on information collection now would reduce ability of state and federal regulators to monitor such problems, group said. “In the absence of some compelling ILEC evidentiary showing that the reports are somehow unnecessary, it appears the proposal to reduce reporting requirements is premature,” NARUC said. FCC proposed reducing data collected from large ILECs as part of its biennial review process (CC Doc. 00-229).

Iowa Utilities Board gave Qwest permission to geographically rebalance its retail basic business rates to reflect cost, revenue and market shifts arising from recent board decision to geographically deaverage Qwest’s unbundled loop rates into 3 cost zones. Qwest is to file tariff with new basic business rates by end of Feb. Loop deaveraging plan adopted by board Jan. 10 will create spread exceeding $26 between lowest and highest loop cost zones. Qwest said loop deaveraging without retail rate rebalancing would create artificial wholesale-retail price disparities that would give CLECs opportunities for uneconomic arbitrage that would unfairly damage Qwest’s position in urban markets while simultaneously discouraging rural competition. Board said Qwest’s case was valid for basic business services, but it said Qwest carried argument too far when it attempted to apply same principle to residential and nonbasic business services. Retail residential rates are below lowest deaveraged loop rate, board said, making uneconomic arbitrage impossible, and company under its price cap plan already had broad pricing flexibility for optional and discretionary business services. Board limited rate rebalancing to single-line and multiline business basic exchange, business trunk services, payphone access lines, Centrex and business ISDN services. Rebalancing will reduce rates in low-cost urban areas and increase them in higher cost suburban and rural areas, but board also put 20% limit on rate increases for any particular service.

FCC asked for comment on Rural Task Force (RTF) proposal for reforming universal service program for rural telcos. Federal- State Joint Board forwarded plan to FCC Dec. 22 (CD Dec 26 p4). In proposed rulemaking issued Jan. 12, FCC said it sought comments on: (1) In general, whether RTF plan should be adopted “as a means of providing stability to rural carriers,” whether it provided “sufficient” universal service support. (2) Effect of plan on competition, how small ILECs and new entrants would be affected. (3) More specific implementation details such as proposed “safety valve mechanism” for providing additional support to rural carriers. For example, agency asked how that support should be distributed if rural carriers were eligible for more than proposed fund cap. (4) Implementation of RTF proposal to fix per-line support at a specific level in competitive study areas. (5) Implementation issues involving “safety net additive support.” Comments will be due 30 days after proposal is published in Federal Register, probably this week.

There may be “significant merit” in ALTS compromise proposal to curb high CLEC access charges (CD Jan 12 p8), Assn. of Communications Enterprises (ASCENT) said in comments filed Jan. 11. ALTS proposed setting ceilings for access charges as alternative to more drastic mandatory detariffing. ASCENT said it, too, had recommended rate ceilings and while those proposed by ALTS were lower, “they nonetheless appear to constitute a rational compromise between the conflicting interests of LECs and IXCs.”

Pat Patton, ex-KMBC and KCWE Kansas City, named program dir., KRON San Francisco… Mercedes Walton, ex-AT&T, appointed pres.- COO, Applied Digital Solutions… Alex Best, ex-Cox Communications, joins board of Concurrent Computer… Jeff Rich, pres.-CEO, Affiliated Computer Services, elected to Pegasus Solutions board… Appointments at Pingtel: Dan Petrie, ex- Logica, to chief architect; Jonathan Ross, ex-Artisoft, to vp- sales; Mike Storella, ex-FreightQuest, to vp-customer service… Chris Clough, vp-corporate communications, leaves Network Solutions.

FCC turned down Motorola petition for reconsideration in 700 MHz order that modified agency’s service rules. Rule change allowed base station transmitters to operate in both lower and upper commercial 700 MHz band after Commission concluded alteration wouldn’t be likely to cause additional interference for public safety operators. FCC said change would provide for broadest possible spectrum use and expand participation in 700 MHz bidding. Agency rules had required commercial base stations to transmit in lower block frequencies of 747-762 MHz and corresponding mobile stations to transmit in upper block of 777- 792 MHz. Responding to several reconsideration petitions, Commission later altered policy in effort not to limit scope of new offerings in bands. Specifically, FCC said in order released Fri. that modification would let licensees configure systems to avoid potential interference to mobile receivers operating in lower block frequencies from TV stations in Ch. 56-59. Motorola petition cited concerns that change allowing base stations to operate in both upper and lower commercial bands would cause interference. Interference concerns stemmed from base station transmitters in upper block potentially creating problems for public safety base station receivers in nearby 794-806 MHz. Latest order said Commission was “unpersuaded” by new technical analysis submitted by Motorola. Adaptive Broadband Corp., ArrayComm, BellSouth and TRW had all opposed Motorola petition.

“Of all the networks, we are situated very nicely… We are in very, very good condition” in case of strike by writers and/or actors, but “I would rather not get into specifics” about steps NBC is taking, Entertainment Co-Chmn. Lloyd Braun told TV critics in Pasadena Fri. “We really don’t want to develop or put on the air any show that we wouldn’t otherwise put on the air if there wasn’t a strike.” Some of that preparation involves reality shows, but fellow Co-Chmn. Stu Blumberg said “it’s not a function of us saying we've got to put so much reality on the air” -- programming staple being used by other networks in strike preparation (CD Jan 11 p3). On sluggish ad environment for all networks, Braun said “we are starting to see signs of improvement, but it has been tough for everybody.” ABC was last of over-air TV networks to appear before critics -- and, unlike others, it didn’t provide any official who could discuss news or other govt. issues under upcoming Bush Administration.

FCC’s C- and F-block PCS auction, which appeared to be entering home stretch, reached $15.3 billion in net high bids late Fri. Verizon Wireless and 2 designated entities with backing from Cingular Wireless and AT&T Wireless accounted for nearly 3/4 of all bids, led by Verizon with $6.2 billion. Cingular-backed Salmon PCS bid $3.1 billion and Alaska Native Wireless, which has nearly 39% AT&T investment, $2.6 billion. Other top bidders include Dobson Communications subsidiary DCC PCS with $960.8 million, VoiceStream with $558.3 million and Cook Inlet with $498.1 million. AirGate PCS, Sprint PCS Network partner, withdrew from bidding last week, following Alltel, Sprint PCS and Nextel. “The prices in our territory have increased beyond a reasonable threshold,” AirGate CEO Thomas Dougherty said. “We believe that investing in our network is a better use of corporate funds.” In all, 39 bidders remain of 87 at Dec. 12 start of auction. Only 33 new bids were placed in 51st round Fri. Bidding also has entered 3rd and final stage, meaning that under auction rules, participants must use at least 98% of eligibility credits to retain eligibility level without using waiver. Initial stage of auction requires bidders to remain active in more than 80% of bidding units on which they placed upfront payments, with threshold increasing at later stages to keep pace of bids moving. Competition still remains most fierce for N.Y.C. licenses, with bids of $1.6 billion, $1.3 billion and $1.2 billion from, respectively, Verizon, Alaska Native and Salmon PCS.

Broadcasters and cable should simplify video encoding to make captioning easier, said Steven Blumenschein, pres. of XOrbit Software. Firm developed UltraCast software, which it said eliminates need to reduplicate shows, and provides flexibility to modify captions without re-encoding tapes.

Canadian Minister of Industry Brian Tobin planned auction of additional PCS spectrum Jan. 15. Qualified bidders reportedly include arm of Sprint PCS Canada Holdings, Bell Mobility subsidiary of BCE, Microcell, Rogers Wireless, Telus, Thunder Bay Telephone.