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.

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.

Citing U.S. World Trade Organization (WTO) promises, former Commerce Secy. and U.S. Trade Representative Mickey Kantor urged FCC to approve license transfers for proposed $34-billion VoiceStream-Deutsche Telekom merger. VoiceStream submitted Kantor statement before close of comment period on merger Mon. “This FCC proceeding is about more than the acquisition of a U.S. common carrier by a foreign company,” he said. “It is a test of the United States’ compliance with binding international legal obligations which were negotiated and entered into in good faith.” In acting on VoiceStream-DT application, FCC must move in way that’s consistent with U.S. obligations under WTO Basic Telecom Agreement (BTA), he said. “Failure to do so could invite initiation of a WTO dispute settlement action against the U.S. government and would establish for other WTO members an unwelcome precedent of noncompliance,” Kantor said. He warned that scope of sanctions under General Agreement on Trade in Services (GATS) wasn’t limited to sector in which violation was found. That means, Kantor said, that if U.S. were found to have violated GATS, “it could be liable for trade sanctions in any sector.” Also, if U.S. were to act in way that indicated backtracking on trade commitments, it could damage its negotiating power in current talks, such as GATS services negotiations, he said. FCC shouldn’t restrict access to U.S. telecom market “based on market conditions in other countries that do not affect competition in the United States,” he said. Binding U.S. commitments under BTA don’t hinge on other countries’ implementation of their own duties, he said. In other reply comments, Organization for International Investment rebutted concerns raised by Sen. Hollings (D-S.C.) and DT competitors such as Global TeleSystems and Novaxess. Hollings, ranking Democrat on Senate Commerce Committee, last month had renewed his call to FCC to reject application, underlining his opposition to telecom assets bought by companies with majority foreign govt. investment (CD Dec 18 p6). In other comments, Siemens advocated approval of merger, saying it would increase U.S. telephony competition. Transaction still awaits approvals of Dept. of Justice, FCC and Committee on Foreign Interests in U.S.

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.

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.

Tough luck for Arianespace Flight 137 continued Jan. 8 as launch of Eurasiasat 1 payload from Kourou was delayed 3rd time, this time by weather -- wind was determined to be unsafe at coastline and at altitude. Arianespace prepared for possible launch after our deadline Jan. 10. First scheduled launch Dec. 8 was delayed for mechanical reasons, rescheduled to Dec. 11 for additional verifications, then to Jan. 8.

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.

RCN Corp. insiders bought 1.538 million shares on open market Dec. 22-28. Purchases were made independent of any company- sponsored plan, company said. Board member Walter Scott bought one million shares, Chmn.-CEO David McCourt 500,000, other board members and officers 38,000.

Arbitron Co. said it has placed Portable People meters (PPM) with first 50 consumers for its upcoming Philadelphia market trial. Arbitron plans to install meters in another 250 homes over next 6 to 8 weeks. Company said 54 radio, broadcasting and cable outlets are now encoding their signals in preparation for trial, with at least another 16 expected to be added to list.

Ericsson said Time Warner had selected it as one of its top suppliers for cable modems this year. TW will deploy Ericsson PipeRider HM200c cable modems nationwide, it said.