Ariz. Attorney Gen. Janet Napolitano ruled expansion of Ariz. Corporation Commission to 5 members from 3, which voters approved in Nov., won’t be effective until 2 additional commission members are selected by voters in 2002 general election. She said plain language of ballot question and fact that legislature didn’t budget for additional members in 2001-02 fiscal cycle clearly showed it didn’t intend that ballot proposition create vacancies that required interim gubernatorial appointments. On related question, Napolitano said current commissioners could be elected to one additional 4-year term when their present terms expired. She said past commissioners, who previously were barred by law from seeking commission seat ever again, could run for 2nd term on agency starting with 2002 elections. With legal questions settled, agency Comrs. Marc Spitzer and Jim Irvin agreed Tues. that Comr. William Mundell was commission’s new chmn. Chmn. serves indefinite term and always casts final vote.

PASADENA -- CBS TV Pres. Leslie Moonves said network had ordered new Survivor series 3 and 4 -- to follow Survivor 2, which begins its run immediately following Jan. 28 Super Bowl. Third in series will air in fall as hedge against possible strike by writers and actors. “That’s all part of the game plan,” along with extended new or expanded editions of news programming, he said at TV critics session here. Reality shows are “not union dependent,” Moonves said. “We hope the strike can be avoided, but we are ready… Obviously, everybody is going to be doing the same thing” in stockpiling reality programming in case of strike (CD Jan 9 p7). He joked that if Super Bowl were “a blowout, we may eliminate the 4th quarter and go right to Survivor… and hopefully in the near future we'll be announcing Survivor 19 and 20.” He refused to discuss prices being paid by advertisers for Survivor 2, but “obviously it’s a great deal more than they paid” for original series last summer.

As FCC continued to weigh AOL’s pending purchase of Time Warner (TW) Wed., consumer groups and smaller ISPs pressed Commission to impose instant messaging (IM) service interoperability and tighter cable open access conditions on merged company. Moves came as one-year anniversary of AOL-TW deal announcement passed without expected merger approval by Commission, which has been grappling with possible additional conditions since FTC okayed deal Dec. 14. While Republican Comrs. Powell and Furchtgott-Roth reportedly have voted to approve merger without additional conditions, outgoing Chmn. Kennard and Democrat Comrs. Ness and Tristani still were trying to craft compromise on IM issue that would set some requirements. In ex parte presentations earlier this week, Consumers Union and Media Access Project urged agency staffers to back interoperability standards for IM services. They argued that reported Cable Bureau staff proposal to force AOL-TW to open its high-speed cable lines to 2nd, unaffiliated IM service was “of limited utility.” On open access issue, consumer groups called on FCC to mandate that AOL-TW provide access to smaller local and regional ISPs as well as such larger national ones as EarthLink. They said proposed requirement would advance “Commission’s public interest objectives of diversity and localism.” Group of smaller ISPs submitted proposed merger condition to FCC Tues. that would require AOL-TW to “enter into a contract with at least one local and one regional ISP in each franchise area in which cable modem service is made available.” ISP group also called on Commission to make AOL-TW open its cable lines to business-oriented services provided by independent ISPs.

Helgi Walker, aide to FCC Comr. Furchtgott-Roth, will move to White House as assoc. White House counsel and special asst., his office said. Walker, who specialized in mass media and cable issues, will be replaced by Ben Golant of FCC Cable Bureau.

FCC, NTIA and Industry Canada reached agreement on spectrum- sharing requirements along U.S.-Canada border for U.S. Local Multipoint Distribution Service (LMDS) and Canadian Local Multipoint Communications Service (LMCS). Interim arrangement also covers certain services in 27 GHz, 29 GHz and 31 GHz. FCC said arrangement defined coordination requirements to help prevent cross-border interference. It said pact would help promote services such as high-speed Internet access and high-speed data. Arrangement calls for licensees of systems in 27 GHz to coordinate services on either side of border, with carriers encouraged to develop their own sharing agreements. If licensees work out their own sharing arrangement, FCC said that agreement will be followed rather than coordination process outlined in U.S.-Canada agreement. Without such sharing arrangements, coordination will be based on different power flux density (pfd) levels calculated at service area boundaries. In 29 and 31 GHz bands, coordination isn’t required if station generates pfd signal less than or equal to -105 dBW/m2 in any 1 MHz band at border. Above that level, coordination is necessary before deployment. In U.S., 27.35-27.5 GHz is occupied by federal govt. fixed and mobile systems and intersatellite service. That means NTIA and Industry Canada will represent licensees in arranging for coordination in that band segment, FCC said. “This arrangement gives licensees the flexibility to develop their own border-sharing agreements and will encourage expanded development of the 27, 29 and 31 GHz bands,” FCC International Bureau Chief Donald Abelson said. Arrangement includes list of service areas that may need to coordinate with each other. In Canada, 27 GHz band is designated for LMCS, but nation hasn’t yet designated radio service for 29 and 31 GHz. In U.S., 29 GHz is allocated for LMDS and in Canada for fixed and mobile service. Arrangement doesn’t apply to mobile services in those bands, although footnote to arrangement said it might be amended if Canada designated 29 and 31 GHz for fixed service. FCC said arrangement was part of its effort to negotiate agreements with Canada and Mexico to promote efficient spectrum use in border regions -- www.fcc.gov/ib/pnd/agree.

Veil Interactive Technologies said it received patent for inserting data into visible portion of broadcast signal. It said technology would allow broadcast signal to become “universal platform” to allow interacting with TV through broadcast signal. Technology uses full-video-image data stream, rather than just vertical blanking interval, allowing up to 6 Mbps to be transmitted, Veil said.

New cable industry study found that 79% of digital cable and 55% of analog cable subscribers were “very or somewhat receptive” to interactive TV (ITV) features. CTAM study, conducted through online interviews with 525 cable customers in 6 major markets, showed video-on-demand (VoD), personal video recorders (PVRs) and local news and information to be most attractive of core interactive features. Customers expressed most willingness to buy VoD services, with 71% of digital cable and 67% of analog cable subscribers saying they would do so. Study also found that cable customers most receptive to ITV features already were tinkering with more rudimentary forms of interactivity, colocating PCs in same room as TV sets and using both devices simultaneously. Most receptive consumers also tended to be 18-34 years old, pay-cable subscribers, frequent pay-per-view users and videotape renters, high-speed data subscribers and owners of big-screen TVs and DVD players.

Hearst-Argyle TV will take over management of WMUR-TV (Ch. 9, ABC) Manchester, N.H., under local management agreement, companies said. Deal is effective until Hearst-Argyle completes acquisition of station from Imes Communications.

Research firm pulver.com forecast that wireless revenue would top local wireline revenue by 2003, based on recent price reductions by mobile providers. “The wireless industry has erased the twentyfold wireline price advantage that existed in 1984, completely changing the business case for who represents a potential wireless customer,” pulver.com CEO Jeff Pulver said. Report said if 25% of residential wireline customers convert to wireless, industry would gain 26 million subscribers, representing $14 billion potential revenue increase. That would give wireless industry revenue of $91 billion in 2003, compared with $90 million for local wireline industry, pulver.com projected.

OPASTCO urged FCC to set higher benchmark for prices charged by rural CLECs for access because their costs were higher. Commenting on FCC public notice that asked about effect of benchmarks on rural CLECs (CC Doc. 96-262), OPASTCO said it supported idea of benchmarks to hold down CLEC access charges but “a single benchmarked rate would not be suitable for all CLECs.” Higher cutoff should be established “for CLECs serving rural or high-cost areas that suitably reflects their higher costs of providing service,” OPASTCO said. Assn. said all of its members were rural telcos and about 1/3 of them operated CLECs.