ICO-Teledesic Global Ltd. received FCC authority to transfer control of license held by predecessor Teledesic to construct, launch and operate nongeostationary orbit Fixed Satellite Service satellites. ICO also received exemption from space station “cutoff rule” that will allow it to continue prosecuting its pending letter of intent to access 2 GHz Mobile Satellite Service frequency bands. Commission said decision would permit completion of planned merger of Teledesic and ICO into single organizational structure and would serve public interest by facilitating rapid deployment and competition for broadband services. FCC gave companies 60 days to complete transaction.

Verizon formally asked Pa. PUC to support Sec. 271 application to FCC for interLATA long distance authority and informed PUC it planned FCC filing in 100 days (around April 20). Verizon’s filing with PUC Tues. said carrier had met all 14 market-opening requirements of Sec. 271 checklist, its Pa. local markets were “fully and irreversibly open” to local competition and CLECs “can compete effectively using our systems.” Verizon said final report by KPMG Consulting on operation support systems test proved its claims: “Our systems scored an ‘A’ on this rigorous test. The results validate the real-world experience of more than 85 competitors who rely on our systems to provide local phone service” in Pa. Verizon said CLECs were serving 670,000 customers using 220,000 resold Verizon lines and 450,000 of their own lines. Verizon said it had implemented 164 interconnection agreements and 1,700 colocation agreements with competitors, had installed 310,000 trunks between its network and those of competitors, and exchanged more than 15 billion traffic min. with CLECs in 2000 -- 32% more than in 1999. Verizon said 85% of its residential lines and 91% of business lines were accessible to CLECs. Local rival AT&T disputed Verizon’s claim of 271 compliance, saying KPMG test failed to provide conclusive proof Verizon could handle commercial volumes of CLEC orders for voice loops and digital subscriber lines on day-to-day basis without glitches. AT&T said CLECs “continue to be hamstrung by Verizon’s wholesale unit” in Pa. local marketplace.

Cablevision Systems said it aims to install up to 500,000 Sony advanced digital cable boxes in subscribers’ homes this year, starting in June. MSO, which plans to take 3-1/2 years to deploy advanced digital boxes throughout its large N.Y.C. area franchise, said it also intends to start offering IP telephony through its digital set-tops later this year. In addition, Cablevision said it added 100,000 high-speed data customers in 4th quarter, closing 2000 with 239,000 cable-modem subscribers, or 12% of homes marketed. Separately, Cablevision and AT&T completed swap of cable systems in N.Y.C. and Boston areas. As part of trade, AT&T received systems serving 358,000 customers in Boston and eastern Mass., boosting its Boston market cluster to nearly 2 million subscribers and 3.5 million homes passed. In return, Cablevision gained systems in northern N.Y. suburbs serving 130,000 subscribers, as well as $870 million in AT&T stock and about $300 million in cash. With deal, Cablevision’s N.Y. cluster now serves about 3 million homes and passes more than 4 million.

FCC C-block bidding edged up to $14.2 billion Tues. after 39 rounds, with Verizon Wireless solidifying its lead to $6.5 billion. While overall pace of bidding has slowed since auction resumed Jan. 4, Verizon Wireless bids picked up, rising from $5.1 billion in net high bids Mon. AT&T Wireless-backed designated entity Alaska Native Wireless came in 2nd with $2.5 billion, followed by Cingular Wireless-backed Salmon PCS with $1.9 billion. For first time on Tues., 2 N.Y.C. licenses edged up past $1 billion. Previously, Verizon had been bidding $1.17 billion for one license in that market, but it edged up bid for 2nd to $1.27 billion. Alaska Native Wireless is bidding $930.7 million for 3rd license there.

NetVoice Technologies said it expected positive earnings before interest, taxes, depreciation and amortization (EBITDA) by 3rd quarter and profitability shortly thereafter, making it first IP telephony provider to announce profitability. Pres.-CEO Jeff Rothell cited industry reports of growing trend toward consumer use and acceptance of IP telephony as fundamental foundation of NetVoice’s business strategy. He said plans for year included becoming profitable, growing enterprise segment and continuing to build wireless IP network.

In news cheered by Wall St., BellSouth reported it had topped its own projections for reaching 200,000 DSL subscribers in 2000, exceeding goal by 15,000 in 46 markets. It also restated 2001 target of tripling DSL numbers to 600,000 in 63 markets by year- end. Company, which plans to announce 4th quarter and 2000 financial results Jan. 22, said it would expand central office and remote solutions for DSL deployment in coming year. It said goal was to increase coverage to more than 70% of households in its markets by year-end. BellSouth DSL is available now to more than 10 million phone lines and is expected to grow to more than 15 million by the end of the year.

U.S. Trade Representative (USTR) is seeking comments for annual review on operation and effectiveness of U.S. trade pacts on telecom services and products. USTR is soliciting feedback on: (1) Whether any World Trade Organization (WTO) member is acting inconsistently on its commitments under WTO Basic Telecom Agreement. (2) Steps that should be taken on reviews in 2000 on telecom trade compliance by Germany, Mexico, S. Africa, U.K. (3) Whether Canada or Mexico has failed to comply with telecom commitments under NAFTA. (4) Whether Asia Pacific Economic Cooperation members, Inter-American Telecom Commission, European Union, Japan, Korea, Mexico or Taiwan have failed to comply with commitments under additional telecom agreements with U.S. USTR also is seeking comment on whether Germany “continues to address” competition issues such as excessive license fees and nontransparent cost data filed by Deutsche Telekom with German regulator. As for other U.S. reviews, USTR seeks comments on whether U.K. is “properly implementing” WTO reference paper obligations to ensure interconnection on terms and cost-oriented rates that are unbundled. Comments are due by noon, Jan. 26 at USTR office.

Percentage of minorities working in PTV stations dropped slightly in 1999 with minority employment growing marginally less than overall total, CPB said in annual report to Congress on Public Bcstg. Services to Minorities and Diverse Audiences. However, minority employment in public radio grew 4.7% as against 2.8% overall increase, resulting in 0.4% gain overall. Public broadcasting stations blamed situation on tight job market combined with fewer resources to spend on recruitment and salaries than larger for-profit corporations, making hiring and retention of all qualified employees, including minorities, difficult.

Cal. Foundation for Taxpayer & Consumer Rights filed state lawsuit on behalf of people of Cal. seeking removal of PUC Comr. Henry Duque from office. Group alleged Duque violated state’s conflict-of-interest law that bars PUC members from holding financial interest in any PUC-regulated company. Suit in Cal. Superior Court, San Francisco County, alleges Duque violated law when he held stock in wireless firm Nextel Communications for several months last year. Although PUC doesn’t regulate wireless rates and entry, suit claimed Nextel holding violated law because company’s fortunes were directly affected by PUC decisions in matters such as numbering, interconnection, universal service. Suit said law without exception required that PUC members with financial interests in companies they regulate must vacate office. Cal. Attorney Gen. William Lockyer last month removed potential obstacle to group when he said he had no legal objection to group’s lawsuit plan.

As expected, satellite launch quota limiting Russian Proton flights ended with close of 2000. U.S.-Russian Launch Trade Agreement signed Sept. 1993 allowed unlimited number of flights on rocket. It originally allowed 9 western geosynchronous transfer orbit (GTO) satellite launches per year until number increased to 16 in 1996, then 20 in 1999, but provided for agreement to expire at end of 2000 unless govts. renewed quotas. After brief posturing by Congress, U.S. followed through with original intent of allowing quota to die at expiration date.