Verizon urged N.Y. state lawmakers to consider legislation this year to require that drivers use hands-free mobile phones. Carrier said if mobile phone usage restrictions were needed, they should be imposed statewide rather than through patchwork of local ordinances. N.Y.C. and at least 6 other local govts. are considering handheld mobile phone bans, in addition to the 2 N.Y. counties that adopted restrictions last year. Verizon said statewide uniformity was critical and municipal or county laws would only confuse drivers. It also said statewide law would ensure uniformity in defining offenses and in penalties. N.Y. legislature opened its 2001 session Wed.

Time Warner Cable began offering commercial video-on-demand (VoD) service in Tampa Bay, expanding total reach of its nascent VoD service to 130,000 digital cable homes in Fla.’s Pinellas County. Concurrent Computer Corp., which is supplying technology for Time Warner, said deployment now exceeded total U.S. installed base claimed by other VoD suppliers. Time Warner also is using Concurrent’s video server and software system in Honolulu area.

Offering optimistic view in generally downbeat industry, McLeod USA told analysts Thurs. it expected its 4th-quarter revenue would exceed expectations at $408 million, with full-year revenue exceeding $1.4 billion. In conference call with analysts, company didn’t address projections that McLeod would face per- share loss for both periods but said its operating profit would be up. COO Stephen Gray said McLeod had 1.1 million access lines at yearend and its “fundamentals have never been stronger in terms of people, assets and execution.” CEO Clark McLeod said company had been “almost boring with our predictability.” He also announced Gray had been named co-CEO, reflecting fact that he and Gray have been sharing leadership in company. “Today we recognize that with our titles,” McLeod said. In answer to question, Gray said company’s acquisition of CapRock Communications would add $70 million to year-end revenue and offset operating profit by negative $2-$3 million. Later in day, Moody’s assigned B1 rating to $450 million in senior notes that McLeod said it planned to offer. Moody’s also retained negative outlook for all McLeod ratings to reflect “the risk of a company in its high-growth phase.” In addition, “generated cash flow is still modest relative to the company’s debt,” Moody’s said. Rating service said, on other hand, it took into consideration McLeod’s “strong management team, good strategy and established track record of strong business plan execution.” McLeod’s shares were up almost 19% at end of day to $19.88.

GiantLoop Network and 360networks announced alliance in which latter will be GiantLoop’s preferred provider of N. American and transatlantic broadband services. In addition, 360 networks made “very minor” equity investment in GiantLoop, Waltham, Mass.-based fiber network.

Rural Task Force (RTF) asked FCC to act within 45 days on task force proposal for rural universal service revisions. In Jan. 3 ex parte letter, RTF said Federal-State Joint Board on Universal Service already had developed “extensive record” of comments on recommendation, so swift action was plausible: “Because the recommendation now in front of the FCC is unchanged from that put out for comment by the Joint Board, it is highly unlikely that an additional round of comments from the FCC is required.” If FCC decides to seek more comments, it ought to complete comment process in 30 days, RTF said. RTF Chmn. William Gillis said group realizes Commission had many demands but “each additional day of delay in implementing universal service reform for rural carriers puts at risk much-needed investment in rural America.”

Globecomm said it signed $4.2 million contract with unnamed telecom company in southern Europe for development, integration and delivery of Ku-band satellite network.

StarGuide Digital Networks said it received patent for its Satellite Receiver/Router System and Method of Use for removable Ethernet cards utilized in satellite receivers as well as satellite receiver cards that provide Internet Protocol (IP) router functionality. Company said technology is essential for StarGuide 3 satellite transmission system, Coolcast streaming media aggregator and broadcaster and Transportal 2000 professional and corporate multimedia distribution system. Coolcast subsidiary uses IP over satellite technology to facilitate multicast distribution of streaming video and audio to unlimited numbers of broadband PC users.

News Corp said it wasn’t going to “risk negative credit rating” following negative forecast from Standard & Poor’s (CD Dec 27 p2) and would “proceed cautiously” in its negotiations for Saban Entertainment’s 49.5% stake in Fox Family Worldwide. S&P report on News Corp. came after Fox Family Chmn. Haim Saban exercised his option to sell his stake back to News Corp. Analysts valued stock at $1.2-$1.7 billion, while Saban estimated worth at $2 billion. Buying at that price, News Corp. could pick up bad credit rating, analysts said, which would undermine its effort to purchase DirecTV from Hughes Electronics.

France Telecom (FT) said its Itineris GSM wireless service added 2.5 million subscribers in quarter ended Dec. 31, increasing total wireless base to 14.3 million. FT said it added record 278,000 in weekend before Christmas. In Dec., more than 450,000 Itineris subscribers used Wireless Application Protocol (WAP) services, threefold increase from Sept. FT has target of one million “active” WAP users by summer.

President-elect Bush “is increasingly turning his attention to the agencies, and so I think you can anticipate announcements on those at any time,” Press Secy. Ari Fleischer told reporters Thurs. after being asked when FCC and SEC chairmen would be named. He said Administration would appoint someone at Office of Management & Budget to focus on technology issues, and said it still was undecided whether higher level “technology czar” would be appointed.