FCC proposed $327,000 in fines against American Tower Corp. (ATC), AT&T Wireless, SpectraSite and Telecorp Communications Tues. for violations of agency’s antenna structure rules. Commission ordered Enforcement Bureau to conduct “additional, more thorough investigation” of ATC compliance with rules. Largest, single proposed fine is against ATC for failing to properly light one antenna during construction, not registering 2 existing structures, failing to notify FCC of ownership changes on 24, not posting registration number on 9 other towers. To ensure air safety, tower owners must meet requirements on lighting, proximity of antenna structures to airports and monitoring to ensure lighting systems work properly. Commission called ATC’s violations of rules, which are designed in conjunction with FAA to ensure towers don’t pose hazards to aircraft, “serious.” FCC actions resulted from “routine investigations and inspections” by field offices of Enforcement Bureau, agency said. Enforcement Bureau also proposed $80,000 in fines to Telecorp, $18,000 for AT&T Wireless and $17,000 for SpectraSite for similar violations of antenna structure rules. Fines against those companies involved failure to light towers properly, failure to post registration numbers and failure to provide updates on ownership changes. As for ATC, FCC said its field agents “repeatedly notified” company about noncompliance. “The Commission expressed concern that in spite of notifications to ATC regarding its noncompliance and statements by ATC representatives that they would address the issue, Enforcement Bureau field agents continue to find violations of the antenna structure rules,” FCC said. In notice of apparent liability for forfeiture for ATC, Commission said most incidents involving failure to notify agency of ownership changes occurred after field representatives met with company officials. “Moreover, the fact that these violations occurred in various states across the country suggests that ATC has not engaged in a ’sweep’ of its antenna structures as its representatives stated that it would,” notice said. FCC said broader investigation of ATC was prompted by continued findings by field representatives of additional rule violations during routine inspections.

AOL Time Warner, having completed its merger late Thurs. night following FCC’s approval, announced its new 16-member board. Company said new board -- 8 members each from AOL’s and Time Warner’s old 11- member boards -- would meet for first time later this week. New board consists of: (1) XO Communications Chmn.-CEO Daniel Akerson. (2) Barksdale Group partner James Barksdale. (3) Hilton Hotels Pres.-CEO Stephen Bollenbach. (4) AOL Time Warner Chmn. Steve Case. (5) Kleiner, Perkins, Caufield & Byers partner Frank Caufield. (6) CGLS Fund partner Miles Gilburne. (7) Hills & Co. Chmn.-CEO Carla Hills. (8) AOL Time Warner CEO Gerald Levin. (9) Colgate-Palmolive Chmn.-CEO Reuben Mark. (10) Former Philip Morris Chmn.-CEO Michael Miles. (11) AOL Time Warner Vice Chmn. Kenneth Novack. (12) AOL Time Warner Co-COO Richard Parsons. (13) AOL Time Warner Co-COO Robert Pittman. (14) Fannie Mae Chmn.-CEO Franklin Raines. (15) AOL Time Warner Vice Chmn. Ted Turner. (16) Vincent Enterprises Chmn. Francis Vincent. In one interesting footnote to FCC’s approval of takeover, consumer groups that had fought for strong regulatory conditions on deal ended up urging Commission to okay it even though they and other critics didn’t gain interoperability of AOL’s current instant messaging (IM) services. New ex parte filing from last week reveals that Media Access Project’s Andrew Schwartzman and Consumers Union’s Gene Kimmelman pressed Comr. Tristani, last holdout in IM fight, to vote for approval because agency had won as much as it could. Despite their strong support for “full interoperability of instant messaging services,” Schwartzman and Kimmelman said, “the net value of the relief the Commission could provide to consumers and the public from a properly crafted decision justified acceptance of an order which did not provide full interoperability.” Sources said consumer advocates also probably feared what might happen if merger review lingered beyond Democratic Chmn. Kennard’s tenure, which will end Fri.

Ill. Commerce Commission last week ordered Ameritech to pay $30 million penalty for its failure to meet state’s outage restoration target in 2000. Ill. Commerce Commission Chmn. Richard Mathias said company’s promises in fall had led agency to expect Ameritech would be in compliance with service outage standard for month of Dec., “but they weren’t.” Ameritech said heavy snows in Dec. caused company to end month with 93% instead of 95% completions of problems.

Financial problems of Globalstar accelerated Tues. with its announcement that it had “indefinitely suspended” principal and interest payments on all of its debt to give it enough cash to fund its operations into 2002. Globalstar, whose “shaky position” in industry may have been hurt by re-entry of Iridium into market, according to analysts, said it would save $400 million cash this year by withholding payments on its bank, debt, senior notes, vendor financing agreements and dividend payments on its preferred stock. Analyst suggested move “pushed the company one step closer to bankruptcy.” Decision will enable Globalstar to preserve “sufficient cash” to fund operations into next year. Earlier, it had said it had enough money to last until 4th quarter 2001. Company said move would give its partners additional time to implement new marketing strategy. Some analysts have predicted Globalstar would end up in bankruptcy within 6 months.

LCC International said it revised contract with XM Satellite Radio to include engineering support, initial operating and maintenance services and construction of smaller number of repeater sites due to shift to more tower-site-based network. LCC also will provide network monitoring and project management. Financial terms weren’t disclosed, but LCC said change would have $5 million negative impact 4th-quarter earnings.

Disney filing at SEC Fri. disclosed that CEO Michael Eisner received $11.5 million bonus in fiscal 2000, plus $813,462 salary and 2 million shares of Disney Internet Group. Disney said large bonus was given as result of company’s “very strong year.” Eisner had salary of $750,000 in 1999, when profits were down, didn’t get bonus. In fiscal 2000, Disney reported profits rose 26% to more than $2 billion. Pres.- COO Robert Iger received $1.08 million salary, $5 million bonus, 100,000 Internet shares. Board Chmn. Sanford Litvack’s salary was $787,500, plus $2 million bonus, 400,000 Internet shares.

PanAmSat said it had record $1.02 billion revenue and $694 million in earnings before interest expense, income taxes, depreciation and amortization (EBITDA) of 2000, up from $810.6 million revenue and EBITDA of $618.8 million last year. Net income edged up to $125.5 million from $122.2 million in 1999. Company said 4th-quarter earnings were $202.9 million, with $136.2 million in EBITDA. Company said it also signed $400 million in new long-term service agreements in 4th quarter. PanAmSat also projected total revenue of $1 billion for 2001, including $205-$210 million for first quarter.

Buyout firm Forstmann, Little agreed to buy Citadel Communications for $1 billion plus assumption of $1 billion debt, companies said. Citadel owns 143 FM and 66 AM stations in 44 markets.

Moody’s placed senior unsecured A2 debt ratings of Portugal Telecom (PT) on review for possible downgrade following carrier’s disclosure that its Brazilian subsidiary was buying 49% of voting rights of Brazilian wireless carrier Global Telecom. PT’s Brazilian arm, Telesp Celular Participacoes (TCP), is buying stake for $1.2 billion, including assumed debt, giving it overall investment of 83% in company. Moody’s concluded that move was in line with PT’s international growth strategy but raised concerns that “the magnitude of the investment may constrain the financial ratios of the group over the near term, as well as expose it to a higher risk operating environment.”

WorldCom asked Mo. PSC to suspend its review of Southwestern Bell Telephone (SBT) Sec. 271 interLATA long distance bid. WorldCom said Jan. 8 decision by 8th U.S. Appeals Court, St. Louis, striking down PSC- approved interconnection agreements based on total element long run incremental costs (TELRIC) meant local exchange competitors had no legal access to SBT’s network. WorldCom contended it was impossible to have legal interconnection agreements based on illegal prices. It said most other CLECs in Mo. based their interconnection agreements on AT&T- SBT contract, so court’s action also voided those agreements, meaning SBT couldn’t be in compliance with Sec. 271 checklist. SBT said it would continue to honor rates company agreed to before its long distance application, but some CLECs and Mo. Office of Public Counsel said competitors were in position of relying on SBT’s oral promises, with nothing in writing that was enforceable. Court’s decision was on an SBT appeal of PSC arbitration decision in interconnection pricing dispute that upheld AT&T’s position favoring TELRIC-based prices. Mo. PSC is considering asking for clarification from court, but also could ask that decision be stayed pending appeal to U.S. Supreme Court.