Despite concerns of sales slowdown for wireless equipment, Nokia reported Tues. it had sold more than 128 million phones in 2000, level that it said beat overall market growth. It also reported preliminary estimates of 405 million wireless phone units sold in last year, short of 420 million forecast by rivals such as Ericsson. Still, Nokia said 405 million number marked 45% increase from 1999. In preliminary numbers released before financial results are reported Jan. 30, it also indicated that global wireless subscriber base reached 700 million by year-end, which Nokia said represented international penetration of 12%.

DirecTV said it was giving $200 mail-in rebate for new residential customers who purchase system with professional installation Jan. 25-April 11 if they commit to one year of Total Choice premium programming package by April 25.

FCC C-block bidding edged up to $14.2 billion Tues. after 39 rounds, with Verizon Wireless solidifying its lead to $6.5 billion. While overall pace of bidding has slowed since auction resumed Jan. 4, Verizon Wireless bids picked up, rising from $5.1 billion in net high bids Mon. AT&T Wireless-backed designated entity Alaska Native Wireless came in 2nd with $2.5 billion, followed by Cingular Wireless-backed Salmon PCS with $1.9 billion. For first time on Tues., 2 N.Y.C. licenses edged up past $1 billion. Previously, Verizon had been bidding $1.17 billion for one license in that market, but it edged up bid for 2nd to $1.27 billion. Alaska Native Wireless is bidding $930.7 million for 3rd license there.

Verizon formally asked Pa. PUC to support Sec. 271 application to FCC for interLATA long distance authority and informed PUC it planned FCC filing in 100 days (around April 20). Verizon’s filing with PUC Tues. said carrier had met all 14 market-opening requirements of Sec. 271 checklist, its Pa. local markets were “fully and irreversibly open” to local competition and CLECs “can compete effectively using our systems.” Verizon said final report by KPMG Consulting on operation support systems test proved its claims: “Our systems scored an ‘A’ on this rigorous test. The results validate the real-world experience of more than 85 competitors who rely on our systems to provide local phone service” in Pa. Verizon said CLECs were serving 670,000 customers using 220,000 resold Verizon lines and 450,000 of their own lines. Verizon said it had implemented 164 interconnection agreements and 1,700 colocation agreements with competitors, had installed 310,000 trunks between its network and those of competitors, and exchanged more than 15 billion traffic min. with CLECs in 2000 -- 32% more than in 1999. Verizon said 85% of its residential lines and 91% of business lines were accessible to CLECs. Local rival AT&T disputed Verizon’s claim of 271 compliance, saying KPMG test failed to provide conclusive proof Verizon could handle commercial volumes of CLEC orders for voice loops and digital subscriber lines on day-to-day basis without glitches. AT&T said CLECs “continue to be hamstrung by Verizon’s wholesale unit” in Pa. local marketplace.

Cablevision Systems said it aims to install up to 500,000 Sony advanced digital cable boxes in subscribers’ homes this year, starting in June. MSO, which plans to take 3-1/2 years to deploy advanced digital boxes throughout its large N.Y.C. area franchise, said it also intends to start offering IP telephony through its digital set-tops later this year. In addition, Cablevision said it added 100,000 high-speed data customers in 4th quarter, closing 2000 with 239,000 cable-modem subscribers, or 12% of homes marketed. Separately, Cablevision and AT&T completed swap of cable systems in N.Y.C. and Boston areas. As part of trade, AT&T received systems serving 358,000 customers in Boston and eastern Mass., boosting its Boston market cluster to nearly 2 million subscribers and 3.5 million homes passed. In return, Cablevision gained systems in northern N.Y. suburbs serving 130,000 subscribers, as well as $870 million in AT&T stock and about $300 million in cash. With deal, Cablevision’s N.Y. cluster now serves about 3 million homes and passes more than 4 million.

AT&T shares closed at $22.50, up 12.15% after news that it’s stock was upgraded to strong buy by Morgan Stanley from neutral in report issued Tues. Morgan Stanley, saying it saw better times ahead for AT&T, established 12-month target price of $35 for company, saying stock now was worth $35-$40 per share after falling 66% in 2000, with AT&T Wireless continuing to show strong growth. AT&T cable prospects also were seen as positive. Morgan Stanley remained cautious on long distance business, figuring valuation at zero at current stock price despite generating estimated $15 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) this year, citing company’s debt load of $60 billion. Brokerage said break-up of company would act as performance catalyst over next several months. It also said plan to distribute rest of AT&T Wireless to shareholders plus aggressive asset disposal program should prove beneficial. While acknowledging AT&T’s “challenging” credit position, Morgan Stanley identified its steps to improve situation such as raising nearly $10 billion from NTT DoCoMo, completing $25 billion debt facility, cutting dividend 83%. It said outlook for 4th quarter foresaw AT&T Wireless “looking good,” adding 850,000 subscribers and generating $2.596 billion in revenue, up 38.2% from a year ago. Beyond 4th quarter, broadband IPO outlook still was seen as problem, with regulatory hurdles to overcome and improvement needed in operating and financial metrics. Cable revenue was expected to grow 9-9.5% on pro forma basis in quarter and 10.5-11% in year, including Comcast swap. By end of year, Morgan Stanley said it expected AT&T Broadband digital penetration of 18.5%, largest digital footprint in U.S., with 1.15 million high-speed data subscribers, 550,000-570,000 residential telephony customers and almost 10% penetration, with revenue of $70 million anticipated. AT&T Broadband capital expenditure this year is expected to be robust. AT&T is to release 4th quarter earnings in week of Jan. 29.

FCC Wireless Bureau denied petitions for reconsideration filed by Alliance for Radio Competition (ARC) and Hugh Taylor on assignment of 900 MHz licenses from Geotek. Last Jan., bureau granted applications for Geotek, which had filed for bankruptcy, to assign licenses to creditors and to assign from creditors to FCI 900, subsidiary of Nextel, licenses not covered by 1995 agreement of Nextel, Motorola, Dept. of Justice. (That consent decree barred Nextel from acquiring 900 MHz licenses in 15 markets.) Bureau also at time accepted FCI request to withdraw applications to assign from creditors to FCI licenses in markets covered by consent decree. ARC had argued that assigning licenses to FCI 900 would decrease competition in dispatch market. Taylor had contended Geotek wasn’t qualified to hold FCC licenses. Bureau concluded that neither ARC nor Taylor had raised new arguments or showed material errors in how decision was made. Order released Tues. reiterated FCC stance that original decision wouldn’t cause competitive harms in affected wireless voice markets.

U.S. Supreme Court has turned down petition for review of FCC guidelines for health and safety standards of radio frequency radiation and procedures for FCC licensees to meet National Environmental Policy Act. Cellular Phone Task Force had lost appeal of FCC order last year in 2nd U.S. Court of Appeals, N.Y., which upheld Commission’s decision. Supreme Court turned down, without comment, group’s petition on Mon., effectively leaving FCC decision intact. FCC guidelines concern human exposure to RF radiation from transmitters and facilities. In part, Cell Phone Task Force had argued that Commission “arbitrarily” ignored expert recommendations that would tighten exposure standards.

AT&T and Insight Communications said they closed on their previously announced deal to add 530,000 cable subscribers to their Insight Midwest joint venture managed by Insight. Under agreement, AT&T is contributing systems in Ill. with 250,000 subscribers, while Insight is adding systems in Ga., Ill., Ind. and Ohio with 280,000 customers. Deal expands Insight Midwest’s total reach to 1.4 million cable subscribers, almost entirely in Ill., Ind., Ohio and Ky. In conjunction with transaction, Insight said it closed on new $1.75 billion credit facility to finance expanded venture.

Cellular Telecommunications & Internet Assn. (CTIA) urged FCC to continue to forego regulation of wireless intercarrier roaming, contending automatic roaming rule isn’t needed. Comments are in response to notice of proposed rulemaking (NPRM) in which FCC examines whether mandatory automatic roaming rule remains unnecessary. NPRM said agency wouldn’t mandate automatic roaming unless market forces along couldn’t ensure availability of competitive roaming services. “The Commission’s current roaming requirements have proven sufficient to foster cellular and PCS roaming services without imposing undue costs” on industry, CTIA said. National Telephone Cooperative Assn. (NTCA) didn’t ask FCC to implement mandatory automatic roaming requirement, but asked it to continue to monitor situation to “ensure that roaming agreements do not discriminate against small and rural CMRS providers.” NTCA said market appears to be working “and automatic roaming agreements are generally available where it is technically and economically feasible.” While rural carriers don’t have trouble striking roaming deals, sometimes terms are “unjust,” group said. In such cases, NTCA said, “the rural carrier pays more for the privilege to roam in the urban territory than the large carrier pays to roam in the rural territory.” Rural Ala. carrier Corr Wireless Communications went step further, saying market is “clearly not working on its own to prevent abuses of power.” “Small independent carriers do not have the economic clout to bargain with large carriers who have their own wide-area footprints for automatic roaming,” Corr wrote, citing alleged problems with Cingular Wireless. “This permits large carriers to engage in the very sort of bullying abuses which led” to regulatory curbs for wireline competitors, Corr said. Corr is asking agency to adopt automatic roaming rule that tracks basic interconnection obligations of common carriers under Telecom Act. Several commenters cited concerns about wireless consolidation, which they said creates less incentive for larger competitors to strike low priced roaming pacts.