BEI Technologies said it had acquired digital quartz inertial measurement and miniature integrated GPS/INS tactical systems (MIGITS) units from Boeing Co., terms not disclosed. BEI said acquisition of subsystems lines would give it access to developed Microelectromechanical Systems and Global Positioning Systems for aerospace, defense and commercial applications.

European Commission (EC) updated its Internet telephony policy with few changes, concluding this technology “in general continues to fall outside the definition of voice telephony.” EC supplement to 1998 communication cited cases in which Internet telephony could be treated as voice telephony. Conditions that must be met include cases when service is offered commercially, provided to public, provided to and from public switched network termination points and involved direct speech transport and switching in real time and at same level of reliability and quality as public switched telecom network. Unless those caveats are met, EC said European Union members “should normally continue to allow Internet access/service providers to offer voice on Internet under data transmission general authorizations, and no mandatory requirement for an individual license is justified.” But if Internet telephony offerings meet 4 conditions, they should be regulated as substitutes for voice telephony under principle of technology neutrality, EC said. It sought comment last summer on status of voice communications on Internet. Several carriers urged Commission to make distinction between voice over Internet, which can be provided over public Internet facilities, and voice over IP, which is offered over dedicated IP networks and can guarantee quality of service (CD Sept 19 p1). EC policy update stipulated that voice over Internet covered “all kinds of conveyance of voice” using IP for routing and transmission. But voice over Internet is subset of voice over IP and “covers only such voice services that are provided over the public Internet, defined as a network of networks,” document said. While technology has improved since EC’s 1998 voice over IP directive, policy update makes clear that “public Internet” still is vulnerable to congestion that could affect voice signal quality. When service operators market bundled data and voice offering, EC would view this combination “as comprising 2 commercial offers,” policy said. In cases such as video telephony, when voice element can’t be separated from other components, “provision of voice services cannot be considered as the subject of a commercial offer,” EC said. It said supplement provided “general guidelines” and didn’t bar national authorities from making “specific assessments when justified by specific circumstances.”

Bidding in FCC’s C- and F-block auction slowed Fri., but reached $13.07 billion, with Verizon Wireless maintaining wide lead of $5.52 billion in net high bids. Other top bidders include AT&T Wireless-backed Alaska Native Wireless with $2.75 billion and Cingular Wireless-backed Salmon PCS with $1.94 billion. AT&T Wireless doesn’t appear in list of top 15 bidders, and Cingular isn’t competing as standalone entity. In all, top 15 bidders now include 13 designated entities, most of which have links to larger carriers. While Verizon is by far highest bidder, $2.26 billion of its total is in bids for 2 N.Y.C. licenses at $1.17 billion and $1.1 billion. Alaska Native Wireless bid $758 million for 3rd license in that market. After 31 rounds, Verizon had highest bids on licenses in Washington, Boston, L.A., Chicago, San Francisco, Philadelphia. Alaska Native Wireless had high bids for spectrum in L.A. and Atlanta and Salmon PCS in Dallas license. Dobson Communications DCC PCS edged into upper echelon of bidders, placing 4th with $957.68 million, followed by VoiceStream with $540.12 million, affiliated Cook Inlet with $348.69 million, Leap Wireless with $293.47 million. Last week marked exit of several large carriers, including Sprint PCS and Alltel. Of 87 bidders who qualified at Dec. 12 start of auction, 49 remained as of late Fri. SVC BidCo, designated entity in which Sprint has 60% noncontrolling investment, still was in auction. Other bidders who have left auction include Nextel, Sprint affiliate Alamosa PCS, Nextel-affiliated designated entity Connectbid, Cincinnati Bell Wireless.

FCC issued Notice of Proposed Rulemaking (NPRM) Fri. that examines potential spectrum that could be tapped for 3rd- generation wireless and other advanced services. Agency seeks comments on providing mobile and fixed services in 1755-1850 MHz band now used by military, various approaches for 2500-2690 MHz now occupied by Multichannel Multipoint Distribution Service (MMDS) and Instructional TV Fixed Service (ITFS) licensees, proposed allocation of 1710-1755 MHz for fixed and mobile services, and other options (CD Jan 5 p1). Interim report on 3G spectrum issued by FCC last fall said segmenting MMDS and ITFS bands to allow operation of advanced mobile services would pose technical challenges. NPRM seeks comments on scenarios that would allow operation of advanced wireless services in that frequency. One possibility, FCC said, is allocating spectrum for fixed and mobile services on co-primary basis, which would allow spectrum to be used for advanced offerings such as 3G. Comment is invited on “public interest costs and benefits” of adding mobile allocation to bands without mandatory relocation. NPRM asks whether there are steps that could bolster secondary market in those bands so they could “evolve to their highest value use,” whether fixed or mobile. “Could current ITFS/MDS licensees reorganize their systems to continue providing current services and also offer new mobile services on a competitive basis with other wireless system providers, such as cellular or PCS,” FCC asked. It wondered whether part of spectrum could be made available for new entities. It asked ITFS licensees whether adding mobile service allocation to 2500-2690 MHz would help educators and, “if so, how such operations could be utilized in an educational context.” MMDS licensees are asked whether adding mobile service would benefit their band plans. If part of band were cleared for advanced wireless services and incumbents had to be moved, notice asks how licensees could be accommodated elsewhere. In that area, agency is looking for cost estimates for relocation and whether equipment would need to be retuned or facilities would have to be replaced altogether. Second phase of FCC’s 3G spectrum report, due in March, is to cover potential relocation options and related costs. NPRM also seeks comment on several band pairing schemes and pairing options. In general terms, FCC solicits feedback on range of advanced wireless services that could be introduced in future and their cost impact on manufacturers, system operators, consumers. Comment is sought on how much additional capacity is needed for advanced services, including high-speed data and multimedia applications such as full-motion video. Specifically, NPRM asks what size of spectrum blocks would be appropriate and when extra spectrum will be needed.

TechNet formally announced appointment of former Rep. Rick White (R-Wash.) as its new CEO. White founded Congressional Internet Caucus and was involved in numerous Internet-related laws, including Internet Tax Freedom Act. He has been partner in Perkins, Coie since losing reelection bid in 1998. “I'm really excited about it,” White told us in interview. He said TechNet would set its agenda for year in executive committee meeting Jan. 11, but he expected hot issues to be trade and education. “I don’t see a whole lot of threats from the government,” White said. “Both parties still want to do business with us. We still have a window of opportunity” for key issues, and “frankly I can’t think of a lot of people opposed to technology.” He said that during his time in Congress, “there was an aversion in the technology community to spend time with government, and government quite frankly didn’t get it… There’s been a gradual evolution in the right direction.”

NCTA called for entries for its 3rd annual “Community Spirit Awards” for local programming. Assn. said it also would host symposium for local and regional programming professionals in conjunction with awards March 27-28. Workshop will include sessions on current issues in local programming and advanced applications with technology. Deadline for entries is Jan. 19.

Effectiveness of U.S.-Europe safe harbor agreement on Internet privacy is in question for telecom carriers because FCC hasn’t agreed to enforce U.S.-Europe privacy agreement, source in Commerce Dept. (DoC) told us. DoC is in talks with Commission in effort to bring it aboard safe harbor agreement, although some sources said European Union (EU) wouldn’t recognize FCC as legitimate enforcement agency. Telecom and common carriers can join safe harbor agreement, but only as it relates to functions outside realm of common carriers, sources said. Agreement reconciles strong European privacy rules with U.S.’s self- regulatory stance, guaranteeing that U.S. companies can do business in Europe.

CWA and IBEW members ratified 2-year extension of existing collective bargaining agreement with Qwest. Contract, negotiated in 4th quarter last year, covers wage and pension increases, including 3.5% wage hike effective Aug. 19. Original CWA contract, covering most Qwest union employees, was signed in Sept. 1998 following 3-week strike. Agreement was to expire Aug. 16, with extension now keeping it in place until Aug. 16, 2003. Other provisions include: (1) 5% wage increase that takes effect Aug. 18, 2002. (2) 6% pension increase effective July 1, 2002. (3) 10% pension raise July 1, 2003. IBEW extension with Dex directory unit provides similar increases with different timelines depending on contract schedules, Qwest said. Contract extension between Qwest Dex management and CWA has been tentatively ratified and must be approved by union members, Qwest said. Company said it expected to be informed of Dex vote results next month. “The union membership voted 98% in favor of ratification,” said Peter Pusateri, business mgr. of IBEW Local 1269.

Largest AT&T affiliate TeleCorp PCS said it added 145,231 customers in quarter ended Dec. 31. TeleCorp PCS was created last year after merger of TeleCorp Wireless, which added 95,656 subscribers in 4th quarter, and Tritel, which added 49,575. Combined entity had year-end subscriber base of 666,425. Tritel said it expected to take premerger one-time charge related to reductions in roaming revenue. TeleCorp PCS said that was likely to mean $4 million reduction in roaming revenue guidance for quarter for Tritel.

Titan Corp. announced installment of 30 satellite gateways in Africa, Middle East and Latin America. Company said it had been attempting to capitalize on opportunity to provide telecom services to underserved markets by installing satellite gateways that use geosynchronous orbit satellites to offer voice and data capacity to global long distance carriers.