GSM Assn. reached agreement with TDMA wireless group Universal Wireless Communications Consortium (UWCC) to include TDMA interoperability with GSM as component of GSM Global Roaming Forum. Point of forum is to foster interoperability of GSM and non-GSM technologies with goal of intrastandard roaming among carriers. Groups said GSM and TDMA interoperability, through GSM/ANSI-136 Interoperability, has been under discussion since 1999. Agreement between 2 wireless groups brought development work under purview of roaming forum. Forum develops technical requirements for terminals, networking and commercial standards for services, billing and financial settlements.

FCC declined Fri. to preempt Mo. law (HB 620) that prohibits political subdivisions such as municipalities from providing telecom services or facilities, concluding that term “entity” in Sec. 253(a) of Communications Act wasn’t intended to include political subdivisions of state but rather appeared to prohibit restrictions on market entry that apply to independent entities subject to state regulation. Acting on preemption petition filed by Mo. Assn. of Municipal Utilities, City Utilities of Springfield and others, Commission said that if municipally owned utility sought to provide telecom service or facility as independent corporate entity that was separate from state, “we could reach a different result under Section 252(a).” Mo. municipalities argued that even if Commission were correct in concluding that Congress didn’t clearly intend to include municipalities that didn’t own and operate electric utilities within scope of Sec. 253, Congress did clearly intend term “any entity” to apply to power companies owned by municipalities. As it found in Texas Preemption Order, FCC said, “any entity” was not intended to include political subdivisions of state. Commission urged states to refrain from enacting absolute prohibitions on ability of municipal entities to provide telecom service. Municipally owned utilities have potential to become major competitors in telecom industry, it said, and their entry could further goal of Act to bring benefits of competition to all Americans, particularly those living in small or rural communities. As for concerns of taxpayer protection from economic risks of entry and possible regulatory bias that municipalities’ entry raise, Commission said such issues could be dealt with successfully through measures that were much less restrictive than outright ban on entry. For instance, there could be nondiscrimination requirements that require municipal entity to operate in manner that’s separate from municipality, “thereby permitting consumers to reap the benefits of increased competition.” FCC also rejected municipalities’ contention that even if municipally owned utilities were political subdivisions of state, legislative history of Sec. 253 (a) demonstrated that Congress clearly intended “any entity” to cover municipal electric utilities. “Other than indicating that municipal energy utilities may make their facilities available to carriers, the legislative history that the petitioners cite does not distinguish between publicly owned and privately owned utilities,” Commission said. In joint statement, FCC Chmn. Kennard and Comr. Tristani said they voted reluctantly to preempt petition because they believed “HB- 620 effectively eliminates municipally owned utilities as a promising class of local communications competitors in Missouri.” Commission was constrained in authority to preempt by decision by U.S. Appeals Court, D.C., City of Abilene, and U.S. Supreme Court’s decision in Gregory v. Ashcroft, they said. Referring to letters from many members of Congress that said it was intent of Congress when it enacted Sec. 253 to enable any entity, regardless of form of ownership or control, to enter telecom market, they urged Congress to consider amending language in section to clearly address municipally owned entities. In separate statement, Comr. Ness urges states to adopt less restrictive measures, such as separation or nondiscriminatory requirements, to protect utility ratepayers or address any perceived unfair competitive advantage.

Without actually announcing his resignation or future plans, FCC Chmn. Kennard said farewell to fellow commissioners and agency staffers at Commission’s open meeting Thurs. In packed, emotional session filled with others’ tributes to his warmth, good humor and commitment to helping minorities, disabled and native Americans, Kennard acknowledged he was chairing his last FCC meeting and wished his successor “a great deal of success.” Choked up and admittedly “overwhelmed” at times, Kennard repeatedly thanked staffers and commissioners for their support and hard work and said he had been “proud and very privileged” to head Commission.

Financials: Nortel will cut work force by 4,000, although its overall staff level will remain same through new hires in high-growth areas, company announced Thurs. Cuts represent 4% of Nortel’s 94,500 employees… Time Warner Telecom completed acquisition of GST Telecom assets for $690 million. GST filed for Chapter 11 bankruptcy protection in May.

Fixed satellite service (FSS) spectrum flexibility is needed because future requirements of satellite companies can’t be anticipated and spectrum flexibility is prerequisite to efficient operation of satellite systems, PanAmSat said in comments to FCC on proposed plan by Fixed Wireless Communications Coalition to change Commission rules on access to spectrum for satellite services (CD Jan 10 p4). In filing that supported position of Satellite Industry Assn. and Satellite Bcstg. & Communications Assn., PanAmSat said FSS spectrum flexibility was required and Commission should abandon proposal to add demonstrated-use requirement.

Seven states have requested more delegated authority from FCC to allow them to implement number conservation measures. FCC is seeking comments on requests of Ind., Minn., Mo., Okla., Tenn., Vt., W.Va. Comments are due Feb. 12, replies Feb. 28 (CC 96-98, 99-200).

U.S. Copyright Office started 6-month negotiation period for adjustment of royalty rates and terms for performance of copyrighted sound recordings by preexisting subscription services and satellite digital audio services. Negotiation period began Jan. 9 and those who want to participate must notify Copyright Office by Jan. 31.

Arianespace Flight 137 finally got off ground Jan. 10 as Eurasiasat 1 was launched into orbit from Kourou after 4 delays. Launch originally had been scheduled for Dec. 8.

Arianespace Chmn. Jean-Marie Luton said company lost more than $190 million in 2000, citing operation of Ariane 4 and Ariane 5, training employees to operate both rockets, raising newer rocket’s payload. Production costs for 2nd series of Ariane 5 rocket will be 35% less than first series, InfoWest spokesman said. Company’s losses were “not a surprise,” he said, adding that it expected to break even in 2001. Arianespace also committed money to building S5 preparation building to allow company to perform all maintenance at launch facility in Kourou and expected building to come into service in April, which spokesman said would save company more money this year.

VisionStar’s proposed transfer of Ka-band satellite license to holding company jointly owned with EchoStar is part of long- range goal to provide high-speed Internet service to rural and remote areas of U.S., CEO Shant Houvnanian told us. “We want to bring 2-way high-speed Internet service to the dark side of the digital divide.” Role of EchoStar also will increase if FCC approves, Houvnanian said. “They will get a larger ownership stake, but I will still be the significant shareholder.” VisionStar/EchoStar partnership filed application with FCC Dec. 15 to transfer control of orbital slot at 113 degrees W over Continental U.S. from VisionStar control (CD Jan 9 p8). Houvnanian said he owns 51%, EchoStar 49% of VisionStar/EchoStar. “I've personally invested a lot of money in this project to keep it going,” he said. “This is a complete start-up” company. VisionStar is one of several companies allocated Ka-band slots in May 1997 by Commission (CD May 23 p5) that have yet to launch satellite or service. Houvnanian said since contracting with Orbital to build satellites, VisionStar had exercised option in contract that allowed it to contract with Lockheed Martin to expand scope of service by building larger satellites.