N.J. Board of Public Utilities extended Verizon’s price regulation plan for additional year, to Dec. 31, 2001, after allowing carrier to withdraw controversial proposed replacement plan that drew strident opposition from customer and competitor interests. Board directed Verizon to file new proposal by Feb. 15 for regulation after 2001, which must adhere to set of requirements board said are intended to address deficiencies that sparked much of opposition to this year’s Verizon proposal. New plan, board said, must include basic service option without additional features. Discredited Verizon plan had proposed doubling basic rate by bundling group of calling features with dial tone. Other requirements Verizon must address in new regulation plan include state universal service support, expanded Lifeline eligibility, service discounts for schools and libraries, service quality standards for wholesale and retail services, cost support for any proposed rate changes, analysis of company’s financial condition, and quantification of merger-related savings.

R/L DBS Co., formerly Continental Satellite Corp., received 36-month extension from FCC Thurs. to start alternative DBS service that has struggled to get off ground during past 4 years. R/L argued in request for extension that legal haggling, FCC delays and changes in market had made it difficult to raise money to launch satellite and meet milestones. Company said it has invested $30 million in DBS business, including $14 million toward design and construction of satellite. EchoStar, which opposed Commission action, questioned whether $14 million payment “constituted significant effort” toward building $250 million satellite. EchoStar also said $15 million went toward acquisition of Continental stock by Loral and R/L DBS hasn’t made additional progress toward arranging remaining financing for satellite. Under terms of its construction permit, R/L DBS originally was required to be in operation by Aug. 15, 1999. Commission said additional time will allow company opportunity to implement “innovative, regionally targeted” DBS service.

National Assn. of Minorities in Communications (NAMIC) Foundation partnered with eBay to raise funds through web site www.ebay.com/charity for its “Digital Bridge Alliance (DBA)” initiative. Telecom content and distribution companies can donate items to be auctioned at web site with proceeds benefitting initiative, NAMIC said. DBA initiative was launched this year by NAMIC to “raise awareness and reinforce the value of home computers and Internet access among African-American, Hispanic and Asian-American/Pan Pacific households.” Auction site featuring NAMIC’s charitable initiative was launched at recent Western Cable Show. Alliance has been endorsed by NCTA, Cal. Cable TV Assn., Walter Kaitz Foundation and National Assn. of Minority Media Executives, NAMIC said.

Covad Communications will trim additional 400 from its workforce, restructuring its Covad Business Solutions div. as part of previously-announced initiative to reduce this year’s operating costs by 20-30%. Costs of restructuring are included in estimated $20 million 4th quarter restructuring charge. Company “needed to consolidate and streamline operations to meet our drive to profitability goals,” said Covad Chmn. Chuck McMinn. Covad will also close about 200 central offices, affecting 1.5% of subscriber base. Staff reduction comes after Nov. 27 reduction of 400, another 14% of company’s headcount.

Va. Corp. Commission approved price cap regulation plan for Verizon South (formerly GTE) that replaces indexed rate-of-return system in place since 1995. Under new cap system, approved Thurs. with effective date Mon., carrier’s basic exchange rates are frozen through 2003. Rates for other noncompetitive services are under caps indexed to 50% of gross domestic product price index, with annual adjustments. Competitive services are flexibly priced. Carrier won’t be allowed any rate increases if it fails to meet state service quality standards. Earnings aren’t regulated. Plan for state’s 2nd largest incumbent telco is similar to plans for other large Va. incumbents. Commission in mid-Dec. paved way for adoption of price caps by approving settlement providing for $200 million refund to customers of overearnings under previous earnings-based plan.

Fla. PSC elected Leon Jacobs new chmn., effective Jan. 2, succeeding Terry Deason, who stays on as commissioner…. Fla. Gov. Jeb Bush (R) reappointed Comr. Lila Jaber to full 4-year PSC term; Jaber was named to PSC in Feb. to complete term of Julia Johnson… Iowa Utilities Board named Judi Cooper acting exec. secy., replacing retiring Raymond Vawter… Jay Walker stepped down as vice chmn., Priceline.com, after becoming CEO, Walker Digital… Arjun Valluri becomes sole CEO, Intelligroup after Ashok Pandey resigned as co-CEO and board member.

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.

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.

Fla. PSC approved BellSouth plan to refund $48 million to residential and business customers. Refund is final step for BellSouth to complete $209 million refund required under 1994 rate settlement with PSC and Fla. Office of Public Counsel. Refunds will be paid out as bill credits of $3.50-$5 per residential line and $10-$15 per residential line, and are to be completed by Feb. Meanwhile, PSC ordered prepaid calling card provider RJM Card Services to show cause within 21 days why it shouldn’t be fined $22,000 or have its operating authority cancelled for PSC rule violations. Company is accused of failing to list all surcharges and fees on its prepaid cards and of ignoring PSC staff inquiries regarding complaints against company.

FCC would be taking “serious misstep” if it delegated reciprocal compensation and LEC-wireless interconnection decisions to state regulators, CTIA said in letter sent to Commission Fri. FCC has indicated it may take that route but “such a decision would be contrary to law” and would run counter to agency’s previous position in regulating commercial mobile radio service (CMRS), CTIA Gen. Counsel Michael Altschul wrote. “At issue is the fundamental question of the Commission’s jurisdiction -- over CMRS providers in general and LEC-CMRS interconnection specifically -- and its decision to abandon its regulatory responsibilities and delegate them to the various states,” letter said. “One certain fact has resulted from the extensive litigation surrounding the Commission’s implementation of the interconnection provisions found in the Act,” Altschul wrote: “The FCC has the sole authority to establish the terms of and to review LEC-CMRS interconnection agreements.”