FCC unanimously adopted notice of proposed rulemaking (NPRM) that eyes frequencies, including those now occupied by military users, for 3rd-generation and other advanced wireless services. Commission also denied petition by Satellite Industry Assn. (SIA) seeking additional spectrum for mobile satellite services (MSS), move that Multichannel Multipoint Distribution Service (MMDS) licensees opposed (CD Aug 30 p1). FCC adopted notice Dec. 29, meeting White House’s year-end deadline for approving item, although text hadn’t been released by our deadline.

Network Access Solutions (NAS) said SBC converted NAS preferred stock into common and agreed to resell NAS’s broadband services in Verizon territory. Preferred shares, which were issued as part of $75 million SBC investment in NAS in March, were converted into 2.6 million common shares at $31 per share. “This will help SBC flesh out our DSL network” in northeast U.S., SBC executive said. NAS also will assign to SBC the central office sites in BellSouth and Qwest territories that were built under agreement between 2 companies and Telefonos de Mexico. NAS will take $24 million reduction in “paid-in capital” in 4th quarter to reflect transaction.

Qualcomm signed royalty-bearing CDMA infrastructure equipment license agreement with GBase Communications, terms not disclosed. Agreement licenses certain Qualcomm patents and agreements to GBase to develop and manufacture wireless infrastructure equipment for in-building or campus network applications. Pact covers cdmaOne, cdma2000, cdma2000 1xEV.

StarGuide Digital Networks said it received patent for its Satellite Receiver/Router System and Method of Use for removable Ethernet cards utilized in satellite receivers as well as satellite receiver cards that provide Internet Protocol (IP) router functionality. Company said technology is essential for StarGuide 3 satellite transmission system, Coolcast streaming media aggregator and broadcaster and Transportal 2000 professional and corporate multimedia distribution system. Coolcast subsidiary uses IP over satellite technology to facilitate multicast distribution of streaming video and audio to unlimited numbers of broadband PC users.

Several members of Congress got off to fast starts this week, introducing Internet-related bills on familiar topics within days of returning to Washington. Among them: (1) Rep. Green (D-Tex.) introduced bill (HR-95) to protect “individuals, families and Internet service providers” from spam. It was referred to both Commerce and Judiciary Committees. (2) Rep. Frelinghuysen (R- N.J.) offered bills to require Federal Trade Commission to set regulations protecting Internet privacy (HR-89) and to regulate Internet companies’ use of social security numbers and other personally identifiable information (HR-91). He also dropped measures prohibiting telemarketers from interfering with any caller ID service (HR-90) and to ensure efficient allocation of phone numbers (HR-92). All were referred to Commerce Committee, of which Frelinghuysen isn’t yet member.

News Corp said it wasn’t going to “risk negative credit rating” following negative forecast from Standard & Poor’s (CD Dec 27 p2) and would “proceed cautiously” in its negotiations for Saban Entertainment’s 49.5% stake in Fox Family Worldwide. S&P report on News Corp. came after Fox Family Chmn. Haim Saban exercised his option to sell his stake back to News Corp. Analysts valued stock at $1.2-$1.7 billion, while Saban estimated worth at $2 billion. Buying at that price, News Corp. could pick up bad credit rating, analysts said, which would undermine its effort to purchase DirecTV from Hughes Electronics.

Qwest Communications signed 3-year, $32 million contract to provide mysmart.com with Web hosting and development, dedicated Internet access, dial port connectivity, onsite project management, future DSL connectivity. Deal enables mysmart.com to offer nationwide Internet service at $9.95 per month. Agreement also allows mysmart.com customers to buy Qwest long distance service directly from mysmart.com. Qwest made equity investment of $5 million as part of long-term strategic alliance with mysmart.com.

NCTA submitted 2nd brief to U.S. Supreme Court, seeking to convince high court to review appellate court ruling that struck down FCC’s authority over pole attachment rates for cable lines carrying Internet service. In 10-page reply brief filed Jan. 2 in Gulf Power case, NCTA argued that decision by 11th U.S. Appeals Court, Atlanta, “improperly rejected the FCC’s reasonable construction of Section 224” of Telecom Act and wrongfully concluded that “Congress intended to repeal the regulatory authority that the FCC admittedly possessed over pole attachments regardless of the type of service provided over the equipment attached to the poles.” NCTA also contended that “this case squarely presents an issue of national importance that was improperly decided” by lower court. It said utilities’ claims that “they are constitutionally entitled to recover so-called monopoly ‘market rates’ for providing access to essential bottleneck facilities is contrary to settled law and, if accepted, would render all rate regulation of monopoly enterprises unconstitutional.” Cable operators charged that utilities had been increasing pole attachment rates substantially since 11th Circuit ruling last spring. But utilities contended that they were entitled to get what market would bear.

Boeing Space Systems (BSS) received $160 million contract potentially worth $1.3 billion to develop high-capacity communication system for U.S. Air Force and Army by 2005, company said Thurs. Harris Corp., Logicon and ITT Industries are working with Boeing on project. Fixed-price agreement calls for first satellite to be launched in 2004 at cost of $160.3 million. If Pentagon exercises its options for 5 more satellites, business could be worth $1.3 billion. Boeing is using its new 702 model satellite bus and associated spacecraft and payload equipment. Team of technicians is expected to provide associated control equipment for both payload and spacecraft.

XM Satellite Radio signed agreement with Visteon to jointly design, develop, manufacture, market and license XM satellite radio technology receivers. XM also said it would unveil its full product line from Alpine, Pioneer and Sony at Consumer Electronics Show in Las Vegas Fri. and offer sneak preview of service leading up to launch of first satellite on Mon.