VisionStar’s proposed transfer of Ka-band satellite license to holding company jointly owned with EchoStar is part of long- range goal to provide high-speed Internet service to rural and remote areas of U.S., CEO Shant Houvnanian told us. “We want to bring 2-way high-speed Internet service to the dark side of the digital divide.” Role of EchoStar also will increase if FCC approves, Houvnanian said. “They will get a larger ownership stake, but I will still be the significant shareholder.” VisionStar/EchoStar partnership filed application with FCC Dec. 15 to transfer control of orbital slot at 113 degrees W over Continental U.S. from VisionStar control (CD Jan 9 p8). Houvnanian said he owns 51%, EchoStar 49% of VisionStar/EchoStar. “I've personally invested a lot of money in this project to keep it going,” he said. “This is a complete start-up” company. VisionStar is one of several companies allocated Ka-band slots in May 1997 by Commission (CD May 23 p5) that have yet to launch satellite or service. Houvnanian said since contracting with Orbital to build satellites, VisionStar had exercised option in contract that allowed it to contract with Lockheed Martin to expand scope of service by building larger satellites.

At last min., FCC once again delayed votes on 3 digital TV items scheduled for consideration at its open meeting Thurs. Commission, which first postponed action on DTV issues last month, didn’t indicate reason for latest delay. But, in his swan song meeting at Commission, FCC Chmn. Kennard pledged that agency would act on all 3 items no later than Jan. 17, just before he’s expected to step down from his post in favor of Republican successor (see separate story, this issue).

“Avoiding a Pearl Harbor in space” and deterring adversaries were among priorities Space Commission identified in report it released Jan. 11 in Washington. “The number of pagers and cellphones in this room speak to the importance” of protecting satellites, Adm. David Jeremiah (USN-Ret.) said at hearing. Gen. Ronald Fogelman (USAF-Ret.), who is commission member, said report outlining vulnerabilities of satellites including communications satellites was “nothing new.” William Graham, chmn. of National Security Research, said “any deliberate attack could produce similar or worse results” than near-total loss of communications for hours or days, as has happened in accidental failures. Robert Davis, pres. of R.V. Davis & Assoc., said commercial use of global positioning system (GPS) highlighted need to solve structural problems with Defense Dept. Among recommendations, commission members cited establishing Space Corps or new branch of military devoted to space. Gen. Howell Estes (USAF-Ret.) said if critical satellite had stopped transmitting when he led space command, “I wouldn’t have had a clue” what was wrong.

FCC took steps at its meeting Thurs. to make it easier for public safety agencies to communicate with one another on emergency scenes, including setting rules for interoperability channels in 700 MHz public safety band. In unanimously approved report and order, agency adopted standard for interoperability channels as recommended by Public Safety National Coordination Committee (NCC) chaired by Kathleen Wallman. For general use channels in 24 MHz designated for public safety in 700 MHz band, FCC adopted notice of proposed rulemaking (NPRM) seeking comments on migration path to more efficient standard. But to encourage early use of 700 MHz, some of which still is occupied by analog broadcasters, order indicated Commission wouldn’t mandate use of that more efficient technology before 2006.

If competition is subsidized it can become artificial, said White Paper released Thurs. by National Telecom Coop Assn. (NTCA). “The Cost of Competition” argues that competition doesn’t necessarily work in rural areas and it shouldn’t be forced. Bottom line is “permit competition to develop in rural areas but don’t subsidize it,” NTCA said in news release. Authored by economist Dale Lehman, White Paper questioned wisdom of making universal service funds available to competitive entrants, saying that might undermine viability of broadband deployment by incumbent rural LEC. There isn’t real strong business case for broadband deployment in rural areas in first place, report said. Solution might be to increase universal service fund so more money would be available to all carriers, Lehman concluded -- www.ntca.org.

Mich. Gov. John Engler appointed Laura Chapelle as new PSC chmn., succeeding John Strand, who recently resigned to head Mich. Legislative Advisory Council. Chapelle, who was Engler’s deputy legal counsel, will serve out 6 months remaining in Strand’s term. Her background is in energy regulation and legislation. Nomination is subject to Senate confirmation.

Electronic Privacy Information Center (EPIC) counsel David Sobel said location technology for wireless phones has “issues that need to be addressed soon.” Sobel said there “is very spotty legislation” in this area. Most important is question of legal standards required for law enforcement to gain access to location information, he said.

Mercedes Walton, ex-AT&T, appointed pres.-COO, Applied Digital Solutions… James Toupin, ex-U.S. International Trade Commission, named gen. counsel, U.S. Patent & Trademark Office… Larry Beerman, ex-Tellabs, named vp-business development, NexTone Communications… Timothy Kelly, ex-tickets.com, appointed pres., National Consumer Organization, Sprint…Kathy Jia promoted to gen. mgr., MediaWave Advertising… Appointed to e.spire Communications board: Dennis Freely, Telecom Group; Stanton Williams, NTL… Reed Hundt, ex-FCC chmn., elected to Brience board… Andrew Rosen, regional vp-sales, Clear Channel, adds exec. vp-mktg., replacing John Fullam… Robert Gerrard promoted to exec. vp-gen. counsel, Scripps Networks… Promotions at ACT Teleconferencing: Robert Aubry, to regional managing dir.-N. America, replacing Eugene Warren, who was promoted to COO; Mark Kelly to chief technology officer, replacing Iain McKeracher, retired.

Small Business in Telecommunications (SBT) told 3-judge panel of U.S. Appeals Court, D.C., Thurs., that many small businesses chose not to participate in 1997 800 MHz specialized radio auctions because of financial uncertainty and because FCC definition of small business was unclear at time of auction. However, when questioned by judges, SBT counsel Robert Schwaninger was unable to name single entity that claimed to have suffered from what SBT termed “uncertainty.” SBT was defending petition for review it filed on 2 FCC orders rejecting company’s petitions for reconsideration of its 800 MHz lower channel report and order and its upper channel report and order. Court said it had no jurisdiction on upper channel appeal since it wasn’t mentioned in SBT’s petition for review. Lower channel appeal dealt chiefly with issue of Small Business Administration approval of small business definition. Judge David Tatel questioned SBT attorney repeatedly, trying to establish, among other things, where in SBT pleadings certain claims made in its petition for review could to be found. All 3 judges said they were unable to find several assertions in SBT’s petition in proceeding’s earlier record.

Since 9th U.S. Appeals Court, San Francisco, ruling classifying cable modem service as telecom service are “nonbinding dicta,” FCC is free to embrace Cox’s position that it’s pure information service devoid of telecom service component, Cox told Commission in reply comments in open access inquiry. Explaining recent decision to stop paying franchise fees on cable modem service to local govts. in 9th Circuit jurisdiction, Cox said court decision meant it had no choice but to suspend payment and collection of fees pending further clarification of issue by FCC. Recognizing its decision would have adverse financial impact on some local franchise authorities, company said it was in discussion with local govts. “in hopes of reaching a mutually satisfactory resolution.” Referring to criticism by National Assn. of Telecom Officers & Advisers (NATOA) that Cox was refusing to pay franchise fees mandated under Title 6 after declining to contribute to universal service fund and failing to secure necessary state or local certificates required under Sec. 253, company said it continued to pay cable franchise fees on all services that had been deemed Title 6 cable services. It would have continued to pay franchise fees on cable modem services in 9th Circuit jurisdiction states but for Portland decision, Cox said, pointing out it was paying such fees in other states. As for USTA’s charge that Cox hadn’t shown any intent to make payments to universal service fund despite concluding data service was telecom service, company said its telephone subsidiaries in 9th Circuit states paid “significant portion” of revenues into state and federal universal funds. “Far from ‘reasoning’ that its cable services are telecommunications services, as USTA claims,” Cox has “vigorously” and “repeatedly” disputed such suggestion, company said, and not until FCC determines that cable Internet service should be subject to Title 2 common carrier requirements can Cox comply with them.