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.

Hughes Electronics said 2 of its subsidiaries, DirecTV and Hughes Network Systems, would start new high-speed satellite Internet service “Powered by DirecPC” as key part of expanding broadband strategy. Company plans to bundle satellite Internet service with DBS and offer it to DirecTV DBS subscribers. Service is expected to begin in this quarter.

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 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.

FCC is holding first meeting of World Radio Conference (WRC) Advisory Committee Jan. 30, 10 a.m.-noon in Commission meeting room. International Bureau’s Planning & Negotiations Div. will take lead on FCC’s WRC efforts, with Julie Garcia directing preparations and serving as designated federal official to advisory panel. Brian Fontes, Cingular Wireless vp-federal regulation, and Jennifer Warren, Lockheed Martin senior dir.- telecom trade and regulatory affairs, are chmn. and vice-chmn. of committee. FCC said particular emphasis at next WRC in June 2003 will be on International Mobile Telecommunications-2000, terrestrial wireless interactive multimedia services, sharing in 40 GHz with aeronautical mobile-satellite services. FCC also expects focus on public protection and disaster relief, broadcasting-satellite interregional sharing, amateur and amateur satellite services, high frequency broadcasting, regulatory procedures for satellite networks. “Our priority during this WRC cycle is to successfully complete the domestic preparatory process in a time frame that allows the U.S. to be a leader at regional and international meetings,” International Bureau Chief Donald Abelson said. FCC also has created new Web site: http://fcc.gov/wrc-03.

Michael Brouder, ex-WBZL Miami, appointed dir.-creative services, WGN Cable, Chicago… Ronald Walter promoted to vp-govt. & cable relations, N. Y. Times Bcst. Group… Kathy Payne promoted to dir. of programming, Cox Communications… Bob Walker, ex-KQMB Salt Lake City, becomes program director, WKTI Milwaukee… Dave Wampler promoted to dir. of finance-central and eastern regions, CableRep Advertising… Philip Bouchard, ex-ThinkLink, appointed CFO-COO, Chapter 2… Bob Collet, ex-Teleglobe, named pres., Velocita… Jack Reily, ex-Broadview, appointed exec. vp-corporate development, Efficient Networks… Mona Klausing, ex-Novatel, named dir.-product mktg., Invertix… Craig Young, AT&T Canada vice chmn. and dir., joins board of Global Metro Networks… Joseph Armstrong, ex-State Of The Art Inc., appointed CFO, Sorrento Networks… Davis Masten, co-founder, Cheskin Research, elected to Truste board… Minoru Nakamura, ex-NTT PC Communications, appointed pres., AOL Japan… Alan Amico promoted to CPO, PeopleFirst.com… Marc Randall advanced to vp- engineering, Force10 Networks… Lance Simmens, ex-Small Business Administration, appointed dir.-govt. relations, Screen Actors Guild… Promoted at 20th Century Fox: Ted Gagliano to pres.- postproduction, Joe Hartwick to pres.-physical production… Travis Rutherford, ex-Dreamworks and Disney, appointed senior vp, MGM Consumer Products and Interactive Divs.

Citing U.S. World Trade Organization (WTO) promises, former Commerce Secy. and U.S. Trade Representative Mickey Kantor urged FCC to approve license transfers for proposed $34-billion VoiceStream-Deutsche Telekom merger. VoiceStream submitted Kantor statement before close of comment period on merger Mon. “This FCC proceeding is about more than the acquisition of a U.S. common carrier by a foreign company,” he said. “It is a test of the United States’ compliance with binding international legal obligations which were negotiated and entered into in good faith.” In acting on VoiceStream-DT application, FCC must move in way that’s consistent with U.S. obligations under WTO Basic Telecom Agreement (BTA), he said. “Failure to do so could invite initiation of a WTO dispute settlement action against the U.S. government and would establish for other WTO members an unwelcome precedent of noncompliance,” Kantor said. He warned that scope of sanctions under General Agreement on Trade in Services (GATS) wasn’t limited to sector in which violation was found. That means, Kantor said, that if U.S. were found to have violated GATS, “it could be liable for trade sanctions in any sector.” Also, if U.S. were to act in way that indicated backtracking on trade commitments, it could damage its negotiating power in current talks, such as GATS services negotiations, he said. FCC shouldn’t restrict access to U.S. telecom market “based on market conditions in other countries that do not affect competition in the United States,” he said. Binding U.S. commitments under BTA don’t hinge on other countries’ implementation of their own duties, he said. In other reply comments, Organization for International Investment rebutted concerns raised by Sen. Hollings (D-S.C.) and DT competitors such as Global TeleSystems and Novaxess. Hollings, ranking Democrat on Senate Commerce Committee, last month had renewed his call to FCC to reject application, underlining his opposition to telecom assets bought by companies with majority foreign govt. investment (CD Dec 18 p6). In other comments, Siemens advocated approval of merger, saying it would increase U.S. telephony competition. Transaction still awaits approvals of Dept. of Justice, FCC and Committee on Foreign Interests in U.S.

In news cheered by Wall St., BellSouth reported it had topped its own projections for reaching 200,000 DSL subscribers in 2000, exceeding goal by 15,000 in 46 markets. It also restated 2001 target of tripling DSL numbers to 600,000 in 63 markets by year- end. Company, which plans to announce 4th quarter and 2000 financial results Jan. 22, said it would expand central office and remote solutions for DSL deployment in coming year. It said goal was to increase coverage to more than 70% of households in its markets by year-end. BellSouth DSL is available now to more than 10 million phone lines and is expected to grow to more than 15 million by the end of the year.

As expected, satellite launch quota limiting Russian Proton flights ended with close of 2000. U.S.-Russian Launch Trade Agreement signed Sept. 1993 allowed unlimited number of flights on rocket. It originally allowed 9 western geosynchronous transfer orbit (GTO) satellite launches per year until number increased to 16 in 1996, then 20 in 1999, but provided for agreement to expire at end of 2000 unless govts. renewed quotas. After brief posturing by Congress, U.S. followed through with original intent of allowing quota to die at expiration date.