WSNet said it signed strategic agreement with Ashe County Cable TV of Fleetwood, N.C., to offer its subscribers privately branded direct-to-home (DTH) digital satellite TV service using WSNet’s satellite programming technology. Agreement marks official entry of WSNet into small and rural franchise cable market. Other terms of deal weren’t announced.

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.

Sprint PCS became latest carrier to drop out of FCC’s C- and F-block auction, which resumed Thurs. and reached $12.01 billion in net high bids. Sprint’s bidding eligibility was reduced to zero after 27 rounds Thurs., FCC said. Lehman Bros. research note issued before auction resumed after holiday hiatus said Sprint was among carriers likely to abandon bidding, path already taken by Nextel and several other carriers since auction started Dec. 12. (Bidding was suspended between Dec. 22 and Thurs. for holidays). Lehman said Sprint PCS didn’t place bids Dec. 21, using waivers instead. “It seems as if Sprint PCS feels the prices are too high and is going to exit the auction shortly after bidding resumes,” Lehman said. Following CDMA agreement with Palm, Sprint shares soared 15.41% Thurs. to close at $23.88. (Pact covers Sprint’s provision of first CDMA solutions for Palm’s handheld devices). Meanwhile, Verizon maintained strong lead with $4.06 billion in net high bids, followed by AT&T-backed designated entity Alaska Native Wireless with $2.67 billion and Cingular Wireless-backed Salmon PCS with $2.19 billion. Verizon Wireless had been high bidder for 2 N.Y. licenses for last several rounds, but ended Thurs. with high bid for only one license at $968.6 million. Alaska Native Wireless bid $716.57 million for another N.Y. license, with Salmon PCS vying for 3rd with $714.45 million. Lehman Bros. indicated auction could wrap up in several weeks. DCC PCS placed high bid of $519.7 million for L.A. license. Verizon also placed high bids for licenses in L.A., Chicago, San Francisco, Philadelphia, Boston, Seattle. Alaska Native Wireless placed high bid for L.A. and Salmon for Atlanta. In top 15 markets, VoiceStream had high bid for Washington license.

As FCC continued to wrestle with imposing additional regulatory conditions on AOL’s pending purchase of Time Warner (TW), Microsoft and other online rivals of AOL pressed their furious campaign for instant messaging (IM) requirements. In latest letter to FCC Chmn. Kennard Thurs., Microsoft called again for “imposition of a meaningful and enforceable condition that facilitates IM interoperability by enabling consumers to communicate with each other regardless of the IM system they use.” Along with brief letter, Microsoft and its allies sent 2-page fact sheet listing 8 consumer groups, 53 companies and associations, 10 senators, 12 House members and 7 publications that are calling for IM interoperability. At minimum, Microsoft argued in separate filing with FCC Tues., “the Commission should obligate AOL to enter into multiple contracts with leading IM providers to allow for interoperability prior to offering any advanced services over the broadband infrastructure of Time Warner’s cable systems.” In earlier filing with Commission, nationwide group of ISPs that had brought class action lawsuit over AOL’s 5.0 and 6.0 software urged agency to force company to modify its offending software feature. They argued that regulatory condition changing that feature, which directs modem calls away from user’s desired ISP to AOL access number, “would do more to introduce competition in Internet access than the instant messaging condition that has been the subject of recent press reports.” Meanwhile, new op-ed piece published by Cato Institute said FTC’s open access conditions on AOL-TW merger would hurt consumers and hamper competition and innovation by dampening incentives for rivals to build competing high-speed data systems. “The entire forced access campaign is an unfortunate example of unelected regulators overstepping their bounds,” wrote Clyde Crews, Cato technology studies dir. “They are exploiting their power over industries to make regulatory ‘law’ that should require an act of Congress. Forced access represents a regrettable new incarnation of industrial policy.”

FCC unanimously adopted notice of proposed rulemaking (NPRM) that eyes frequencies, including those now occupied by military users, for 3rd-generation and other advanced wireless services. Commission also denied petition by Satellite Industry Assn. (SIA) seeking additional spectrum for mobile satellite services (MSS), move that Multichannel Multipoint Distribution Service (MMDS) licensees opposed (CD Aug 30 p1). FCC adopted notice Dec. 29, meeting White House’s year-end deadline for approving item, although text hadn’t been released by our deadline.

VoiceStream is partnering with RealNames to provide keyword wireless Web searching for Web-enabled cellphones. For example, typing in Zagat instead of full URL would take user directly to Web site. New Internet address system uses network of routers and proprietary “in-memory” databases created by RealNames that basically is “layered” over Internet, said Chief Technical Officer Nico Popp. In Nov., RealNames partnered with Phone.com, mobile internet software maker, by putting RealNames Keyword Navigation System on Phone.com’s UP.Link server. RealNames key word system is multilingual -- Japanese Kangi, for instance can be entered into system, Popp said.

Me. PUC opened docket to consider replacing current nonoptional extended local calling plans with optional programs customers can select. Currently, extended local calling surcharges become mandatory if majority of local customers want expansion and PUC approves. PUC said Tues. it was considering replacing current system with either selective extended calling, where customer may add one or more distant exchanges to local area for flat monthly fee per exchange or contiguous extended calling, where customer can add groups of contiguous distant exchanges for flat monthly fees. PUC will hold Jan. 31 workshop with industry to address implementation issues such as intercarrier compensation, specific rates and terms for customers, whether extended calling should be time-unlimited.

Portugal Telecom’s mobile business arm signed letter of intent Wed. to select Alcatel to provide multimedia technology. Alcatel will install infrastructure for 1,000-site UMTS/3G network. Company guaranteed high-speed, high-quality mobile UMTS service would start Dec. 1, 2001.

Ida. Dept. of Consumer Affairs began accepting names for its no-call list under 2000 state law that will take effect May 2. Ida. charges $10 registration fee for first 3 years on list, plus $5 renewal fee to keep name on list another 3 years. Ida. Attorney Gen. Albert Lance and Gov. Dirk Kempthorne were among first to sign onto list Tues., along with legislative leaders. Those who register by March 31 will be on first list published in April. Those who miss deadline will be on first quarterly update in July. Violators face penalties of $500 per call on first offense and up to $5,000 per call for subsequent offenses. Ida.’s no-call law exempts calls from tax-exempt nonprofit organizations and from businesses calling their established customers.

Four major MSOs swapped or purchased cable systems from one another as new year began, furthering trend toward industry consolidation that has snowballed in last 3 years. Adelphia, AT&T Broadband, Comcast and Mediacom all announced system exchanges or acquisitions that would result in 2.4 million subscribers, or more than 3% of all U.S. cable customers, changing corporate hands overnight. Transactions will create even bigger cable clusters in such large markets as N.Y.C., L.A., Washington, Chicago, Detroit, Philadelphia, Atlanta, southeastern Fla. But some industry observers said deals, concluded as FCC continued to weigh final govt. approval of AOL’s pending purchase of Time Warner (TW), would lead to even more as scale became ever more important. “Cable consolidation is not over,” ABN AMRO analyst John Martin said.