VSB/COFDM report sent to key broadcasters late Fri. included “some good news and some bad news” for both DTV modulation systems, we're told. Reports, based on field testing completed in mid-Dec., were said to have been adopted unanimously by technical groups, which include VSB critic Sinclair Bcst. “I think it was pretty well balanced,” one official familiar with report said. He discounted claim that report strongly supports VSB (CD Dec 29 p4). Technical groups preparing report have kept tight lid on results, with even steering committee members generally not told in advance, we're told. In letter of appreciation to technical group members, Project Chmn. Gary Chapman of LIN TV and Vice Chmn. Craig Dubow of Gannett said they're “confident that the process was inclusive, fair and scientifically sound,” but they admitted that “even these most comprehensive and authoritative tests cannot fully resolve all issues. Opinions may differ as to the precise implications of the data.” Steering Committee is to meet Jan. 10 to discuss results and submit reports to MSTV board. Then, series of meetings will lead up to joint session of NAB and MSTV boards Jan. 15 in Carlsbad, Cal. Broadcasters spent $2.1 million on testing of competing DTV modulation schemes, following what they acknowledged to be “stalemate” as result of dispute over benefits of each system. TV group CEO told us “the direction we take will be charted” at industry summit of station executives in Washington Jan. 11. But, he said, unless study shows COFDM with “an overwhelming preference” industry should proceed with VSB. Then, he said, “we will need to press the FCC very, very hard” for such things as digital must carry and TV networks for more digital programming.

Motorola said Fri. it will unveil its iRadio satellite car radio system at Consumer Electronics Show at Las Vegas Convention Center this week. New car radio system is one of many digital radios that companies are planning to compete with XM and Sirius Satellite Radio for customers, industry officials said. IRadio, developed by Motorola Telematics Unit is expected to offer satellite services and interact with Internet through digital cellular networks which are primarily used for voice calls. Company is hoping to integrate iRadio with satellite navigation systems and emergency service products that are standard in many cars and trucks. CES is being used to showcase prototype with hopes of attracting manufacturer of car audio products, firm said. Motorola believes “right company” could have products ready for introduction to marketplace in one year, spokesman said.

Last recession year for TV advertising was 1991, and “it appears the industry is heading that way again in 2001” in terms of national spot, prominent stock analyst predicted last week in face of broad indications of major cutbacks by largest TV advertisers. First quarter of year looks particularly bad for TV stations, he and others predicted. Radio on other hand will show ad growth of 7.5-8% next year, according to Gary Fries, pres. of Radio Ad Bureau. “Radio is 80% a local business with revenue sources that defy national trends,” he said.

OPASTCO said in Dec. 28 letter to House and Senate leaders that repealing estate tax is one of its top priorities. It’s “one of the most important actions Congress could take to encourage further economic growth in rural communities,” OPASTCO said. “For small towns, the sale of a family-owned business due to estate tax obligations adversely impacts the entire community,” said assn. which represents rural telcos.

Joint venture company has been established in Japan to administer use of Bluetooth logo on compliant products. Toshiba will own 80.5% of as-yet-unnamed company, which will be capitalized at Yen 40 million and will start operations in Feb. Other partners are Taiyo Yuden (with 10% share) and IBM Japan (9.5%). Partners said new company is expected to “make it much quicker and more convenient for Japan-based manufacturers to obtain qualification of Bluetooth-enabled products, and is also expected to contribute to shorter development terms and lower associated costs.”

NorthPoint Communications announced Fri. it pulled out of VersaPoint, joint venture with European broadband operator VersaTel, as part of its effort to reduce spending. NorthPoint sold its 50% share of venture to VersaTel which will relieve NorthPoint of capital commitment worth about $23.2 million, assume VersaPoint liabilities and pay NorthPoint about $6.5 million in cash. VersaPoint began commercial service in summer, offering retail DSL services in VersaTel’s core market of Benelux area and northwest Germany. “Under the circumstances, we do not have the resources to support this venture,” NorthPoint Chmn. Michael Malaga. Verizon, which had planned to combine its DSL business with NorthPoint’s, cited “deterioration” in NorthPoint’s business operations and financial condition as reasons for ending venture.

Indicating more cautious approach to bad customer debt, Lucent nearly doubled funds it set aside for “doubtful” accounts in fiscal 2000, according to SEC filing. Lucent boosted reserve by 58% to $501 million in fiscal year that ended Sept. 30. Company, which had set aside $318 million in 1999, added $252 million to that this year. Despite extra cushion, Lucent wrote off only $69 million for bad debt, compared with $112 million in 1999. Heftier debt reserve is seen as way to make Lucent less vulnerable in future to uncollected bills and defaults by customers to which it has extended credit. Manufacturers such as Lucent extend fairly generous credit terms to new telecom companies such as CLECs to encourage them to buy equipment as they grow. However, in recent times CLECs have begun facing financial trouble, making manufacturers vulnerable to debt collection problems.

Kan. Corp. Commission said its 2000 Lifeline public awareness campaign, which ran from June through Oct., was success. Agency said campaign boosted Lifeline enrollment with Southwestern Bell Telephone and Sprint/United by 50%. Program uses federal and state universal service resources to provide $10.50 discount on monthly local service charges.

FTC gave AT&T Broadband final legal clearance to complete sale of Salt Lake Tribune newspaper to Denver-based Media News Group, nation’s 7th largest newspaper chain. Decision was given Dec. 22 but official publication was delayed. Companies cleared first legal hurdle Dec. 15 when U.S. Dist. Court, Salt Lake City, denied request by newspaper’s managers to block sale on grounds AT&T had promised that managers’ group would have right to manage Tribune until 2002, when managers would receives option to buy paper. Managers had unsuccessfully contended new ownership would bring changes that would violate their management and option agreement. Court ruled managers’ pact with AT&T was tentative and not binding since major issues like price hadn’t been resolved. Managers didn’t appeal decision after court assured them it would be willing to hear any complaint involving violations of managers’ rights by new owners. AT&T acquired Tribune when it bought TCI in 1999. TCI bought paper in 1997.

NxGen and Touch America announced strategic partnership Fri. linking NxGen’s IP/ATM network with Touch America’s wireless and fiber-optic network. Companies plan to offer next-generation applications and services. Touch America is subsidiary of Montana Power Co.