Wash. Utilities & Transportation Commission (WUTC) approved new rates for extending telephone lines to serve new residences within an incumbent telco’s local service area. New schedule caps up-front charge at 20 times customer’s basic exchange service rate. After service begins, customers would pay double their normal basic exchange rate for first 20 months of service. WUTC said new rate schedule would make it simpler for unserved residents to acquire phone service. New rate schedule applies only to residential service; business-service line extensions continue to be provided under old schedules.

As FCC Chmn. Kennard departs today, he leaves legacy as extremely decent man who might have been more effective if he were more of a politician, industry officials told us. “He is a prince of a man, honorable, honest,” said one telecom lobbyist. “But I don’t believe he’s a politician at heart and it’s hard for that kind of person to survive the political cauldron in Washington.” No one we talked with disputed Kennard’s honorable nature. Even his ideological opposite, Comr. Furchtgott-Roth, said Thurs. that he viewed Kennard’s departure to make way for Republican as “somewhat bittersweet” because Kennard was “one of the finest, most decent individuals I've ever met.”

Public broadcasters’ DTV transition will run $779 million shortfall with no funding increases from federal govt., White House said in final Economic Outlook report. PTV made list of “pending policy proposals” -- Clinton Administration budget items that were cut severely by Congress -- after receiving only $44 million of requested $110 million for FY 2001. White House also said FCC’s spectrum auction authority had reaped $20 billion since 1994, and failure to renew it past 2008 would cost federal govt. $500 million annually.

Time Warner Cable and Intellicast.com said they teamed up to start Broadband Weather, new online weather information service delivered over high-speed cable lines, in MSO’s Portland, Me., system. New on-demand, 24-hour service features hourly local weather forecasts, national forecasts, video segments, local radar, storm watches and warnings, severe storm tracking. Time Warner said it would offer broadband service to its Road Runner subscribers in Portland area first and then extend it to several other regions.

Broadlogic said iBeam signed agreement to use Satellite Express XR1 Fast Ethernet receiver/router developed by Broadlogic as standard satellite receiver platform for current and new deployments within iBeam networks.

Ill. Commerce Commission Chmn. Richard Mathias this week asked other 4 Ameritech state commissions whether they ought to call another joint session with top SBC and Ameritech officials to get explanations for seeming contradictions between what companies were telling states and what they were telling securities analysts about service quality, competition and regulatory compliance burdens. In letters Tues. to heads of Ind., Mich., Ohio and Wis. commissions this week, Mathias cited “discrepancies” in statements by SBC Chmn. Edward Whitacre and other top SBC/Ameritech officials to state regulators in Oct. 16 summit meeting, and what Whitacre and other officials told securities analysts in Dec. 16 briefing. He asked other states “whether it would be helpful to know” which story contained real reasons for company’s troubles of past year. Mathias said SBC/Ameritech told securities analysts service problems of 2000 were caused by aging outside plant and capacity difficulties but told states problems were caused by technician shortages coupled with weather problems and surges in demand. He also said SBC/Ameritech had been telling Great Lakes state regulators and legislators company was being hammered by local competitors, while telling securities analysts that Tex. was where most local competition was happening, and that elsewhere companies expected growth in vertical service revenues would offset access line losses to CLECs. Mathias also questioned SBC/Ameritech’s blaming regulators for delays in entering long distance and other new markets when companies were paying millions of dollars in penalties for failing to serve retail and wholesale customers they already had. He said that while Ameritech seemed to have improved service for retail customers, it still was falling short in wholesale service to its competitors. “We should determine whether the seeming discrepancies between the comments by SBC/Ameritech to securities analysts and to state regulators demand immediate clarification,” Mathias wrote, and asked whether states wanted another summit with Whitacre to hear explanations. Ameritech spokesman said there wasn’t any pressing reason for another joint session with regulators because service problems that led to first session in Oct. “by and large have been addressed.” He said Ameritech hired hundreds of technicians and its service performance was at or close to state service quality standards. In related action, SBC’s Whitacre Tues. publicly apologized for Ameritech’s poor phone service in appearance before 250 Mich. business leaders at Economic Club of Detroit. “I know we stumbled coming out of the gate” following Ameritech-SBC merger, he said: “I'm not saying the problems are over. We are all embarrassed by them, but we are well on the way to correcting them.” He said Ameritech was upgrading its network to digital fiber system, which he said should cut down on maintenance problems, and has hired and trained more technical workers. He said service quality in Mich. still wasn’t quite as good as in other states, but vowed that it “will be and will be quickly” as good as elsewhere in region.

DirecTV is facing another class action lawsuit for alleged monopolistic practices that resulted in increase in price subscribers must pay for its products and services. Suit filed last Sept. in U.S. Dist. Court, L.A., alleged that DirecTV engaged in activities intended to stifle competition in violation of various federal and state antitrust laws. Suit said all DirecTV subscribers from March 1996 to Sept. 2000 had been damaged by DirecTV conduct and were entitled to damages. Best Buy, Circuit City, RadioShack and Thomson Consumer Electronics also were named in suit. Sears Roebuck also sued DirecTV claiming, among other things, that latter had canceled its contract after Sears didn’t stop selling EchoStar products and services.

Telecom officials didn’t get answer from Bush Administration representatives Wed. to question who would be named FCC chmn., and when, we're told. Industry officials, primarily contributors to campaign, met with Bush transition office Wed. afternoon in what was described as “very generic and nonspecific” meeting. Most of attention focused on FCC reform, expediting agency decision-making and similar broad issues, we're told.

Universal Space Network and BAE Systems opened Western Australia remote ground station at Yathanrragga to support former’s subscriber base, which includes NASA’s Triana spacecraft mission. Station will be constructed and maintained by BAE Systems.

FCC approved WorldCom’s acquisition of Intermedia Wed., subject to only one condition -- that Intermedia and its subsidiaries be regulated as dominant in their provision of service on U.S.-Brazil route. Commission action transferred control of wireless, international and domestic wireline licenses from Intermedia to WorldCom. FCC’s action was somewhat perfunctory because WorldCom is required to divest all of Intermedia except its controlling interest in Web-hosting company Digex under consent decree with Dept. of Justice (CD Nov 20 p4). FCC said that it therefore viewed this order as “interim” transfer of licenses and authorizations. It said “once a third-party purchaser is identified, we will review the subsequent transfer of control of the Intermedia assets to ensure the public interest is served.” Agency rejected AT&T concern that merger would give WorldCom too much dominance over Internet backbone market. FCC pointed out that it didn’t regulate Internet Web hosting but said that, regardless, it disagreed with AT&T. WorldCom spokesman said company still needed “handful of state approvals” before deal could go through.