American Tower said Fri. its operating income before depreciation and amortization plus interest would fall below expectations for 4th quarter. Company said lower than anticipated levels were due mainly to one-time $7 million reserve for bad debt on component sales to Anicom. Operating income before depreciation and amortization is now expected to be $56-$60 million in quarter. Company also said it expected revenue for quarter to be $226-$233 million, resulting from stronger than forecast sales in services and Internet, voice, data and video segments. American Tower estimated that towers newly constructed in quarter would top 500, also beating forecasts and raising year- end total to more than 1,650. Company’s shares fell 8.37% Fri. to $36.25 at close.

Tex. PUC urged state legislature to set statewide goal of providing affordable advanced services to all Texans by date certain, refrain from overregulation of advanced digital data services, create climate that promotes advanced service development. PUC, in annual report to legislature on broadband development in Tex., said while rural areas’ broadband interest was high, they were less likely to have services available. Agency said Internet use among older, poorer and minority populations was less than in overall population. To spur broadband development, PUC suggested legislature consider tax incentives, giving rural governments authority to provide broadband services if private efforts failed, using control over state rights-of-way to encourage development, using economic development funding for advanced services. Agency also suggested private initiatives including demand pooling, community networks and finding “anchor tenants” that would guarantee usage to attract investment.

As it continues to weigh imposing additional regulatory conditions on AOL’s pending purchase of Time Warner (TW), FCC is seeking help from group of small and midsized ISPs. Commission has asked coalition of smaller ISPs and state associations to draft definitions of local and regional ISPs that agency might use in setting tougher open access requirement on AOL-TW combination. Proposed requirement reportedly would force AOL-TW to carry at least one local and one regional ISP on every TW cable system, in addition to national EarthLink service that MSO already has committed to carry. That would go beyond open access provision stipulated by FTC, which would require AOL-TW to open its high- speed cable lines to at least 3 unaffiliated ISPS, including EarthLink, when it added AOL as offering. Speaking for ISP coalition, NorthNet Mktg. Dir. Stephen Heins said group also was pressing FCC to set open access mandates for business users in smaller and rural areas. He said group planned to submit its proposal to Commission by today (Jan. 8) at latest.

TechNet formally announced appointment of former Rep. Rick White (R-Wash.) as its new CEO. White founded Congressional Internet Caucus and was involved in numerous Internet-related laws, including Internet Tax Freedom Act. He has been partner in Perkins, Coie since losing reelection bid in 1998. “I'm really excited about it,” White told us in interview. He said TechNet would set its agenda for year in executive committee meeting Jan. 11, but he expected hot issues to be trade and education. “I don’t see a whole lot of threats from the government,” White said. “Both parties still want to do business with us. We still have a window of opportunity” for key issues, and “frankly I can’t think of a lot of people opposed to technology.” He said that during his time in Congress, “there was an aversion in the technology community to spend time with government, and government quite frankly didn’t get it… There’s been a gradual evolution in the right direction.”

FCC issued Notice of Proposed Rulemaking (NPRM) Fri. that examines potential spectrum that could be tapped for 3rd- generation wireless and other advanced services. Agency seeks comments on providing mobile and fixed services in 1755-1850 MHz band now used by military, various approaches for 2500-2690 MHz now occupied by Multichannel Multipoint Distribution Service (MMDS) and Instructional TV Fixed Service (ITFS) licensees, proposed allocation of 1710-1755 MHz for fixed and mobile services, and other options (CD Jan 5 p1). Interim report on 3G spectrum issued by FCC last fall said segmenting MMDS and ITFS bands to allow operation of advanced mobile services would pose technical challenges. NPRM seeks comments on scenarios that would allow operation of advanced wireless services in that frequency. One possibility, FCC said, is allocating spectrum for fixed and mobile services on co-primary basis, which would allow spectrum to be used for advanced offerings such as 3G. Comment is invited on “public interest costs and benefits” of adding mobile allocation to bands without mandatory relocation. NPRM asks whether there are steps that could bolster secondary market in those bands so they could “evolve to their highest value use,” whether fixed or mobile. “Could current ITFS/MDS licensees reorganize their systems to continue providing current services and also offer new mobile services on a competitive basis with other wireless system providers, such as cellular or PCS,” FCC asked. It wondered whether part of spectrum could be made available for new entities. It asked ITFS licensees whether adding mobile service allocation to 2500-2690 MHz would help educators and, “if so, how such operations could be utilized in an educational context.” MMDS licensees are asked whether adding mobile service would benefit their band plans. If part of band were cleared for advanced wireless services and incumbents had to be moved, notice asks how licensees could be accommodated elsewhere. In that area, agency is looking for cost estimates for relocation and whether equipment would need to be retuned or facilities would have to be replaced altogether. Second phase of FCC’s 3G spectrum report, due in March, is to cover potential relocation options and related costs. NPRM also seeks comment on several band pairing schemes and pairing options. In general terms, FCC solicits feedback on range of advanced wireless services that could be introduced in future and their cost impact on manufacturers, system operators, consumers. Comment is sought on how much additional capacity is needed for advanced services, including high-speed data and multimedia applications such as full-motion video. Specifically, NPRM asks what size of spectrum blocks would be appropriate and when extra spectrum will be needed.

Michael Kennedy moves up to dir.-global relations, Motorola… Betsy Kulick, ex-Motient, named dir.-external relations, Final Analysis… John Fiorini, ex-Gardner, Carton & Douglas, appointed partner, Wiley, Rein & Fielding… Nicole Buie, advanced to dir.-research and education, CableRep Adv…Stephen Parker, ex-Russell Reynolds, named managing dir.-information systems and e-commerce, Hailes & Assoc… Jack Zwaska to receive career achievement award to be named after him by Bcst. Cable Financial Management Assn. Jan. 10… Adam Singer, Telewest, appointed non-exec. member of board, QXL ricardo… Jeffrey Liberman advanced to pres.-Radio Div., Entravision Communications, replacing Amador Bustos, who resigned as executive but remains with company… Kay Jackson promoted to dir.-regulatory affairs, Cox Communications… Travis Rutherford, ex-ememories.com, named senior vp, MGM Consumer Products and MGM Interactive, replacing Doug Gleason, resigned… Richard O'Brien, ex-Special Olympics, appointed exec. vp-dir.-govt. relations, American Assn. of Advertising Agencies… Changes at Prodigy Communications: Added to board: Robert McClane, Joseph McKinney and Randall Stephenson; resigned from board: Marc Goldberg and Arturo Elias… Vicki Livingston, ex-Telecorp PCS, named dir.-mktg., Universal Wireless Communications Consortium… William Carey, advanced to pres.- Southwest Tex. Div., Time Warner Cable, replacing Jeffrey King… Peter Uhlmann promoted to chief of staff for Rep. Cox (R-Cal.) from legislative dir., but will continue as principal adviser on Internet and telecom issues.

BEI Technologies said it had acquired digital quartz inertial measurement and miniature integrated GPS/INS tactical systems (MIGITS) units from Boeing Co., terms not disclosed. BEI said acquisition of subsystems lines would give it access to developed Microelectromechanical Systems and Global Positioning Systems for aerospace, defense and commercial applications.

Hungarian Telephone & Cable finalized purchases of shares of its Hungarian subsidiaries from minority stockholders, terms not disclosed. Company said transactions were all-cash except for purchase of International Finance Corp.’s (IFC) 20% stake in Papatel. For Papatel transaction, Hungarian Telephone issued 72,000 shares of common stock to IFC, which is part of World Bank Group. Hungarian Telephone Pres. Ole Bertram said it planned to consolidate its 4 subsidiaries into single company.

European Commission (EC) updated its Internet telephony policy with few changes, concluding this technology “in general continues to fall outside the definition of voice telephony.” EC supplement to 1998 communication cited cases in which Internet telephony could be treated as voice telephony. Conditions that must be met include cases when service is offered commercially, provided to public, provided to and from public switched network termination points and involved direct speech transport and switching in real time and at same level of reliability and quality as public switched telecom network. Unless those caveats are met, EC said European Union members “should normally continue to allow Internet access/service providers to offer voice on Internet under data transmission general authorizations, and no mandatory requirement for an individual license is justified.” But if Internet telephony offerings meet 4 conditions, they should be regulated as substitutes for voice telephony under principle of technology neutrality, EC said. It sought comment last summer on status of voice communications on Internet. Several carriers urged Commission to make distinction between voice over Internet, which can be provided over public Internet facilities, and voice over IP, which is offered over dedicated IP networks and can guarantee quality of service (CD Sept 19 p1). EC policy update stipulated that voice over Internet covered “all kinds of conveyance of voice” using IP for routing and transmission. But voice over Internet is subset of voice over IP and “covers only such voice services that are provided over the public Internet, defined as a network of networks,” document said. While technology has improved since EC’s 1998 voice over IP directive, policy update makes clear that “public Internet” still is vulnerable to congestion that could affect voice signal quality. When service operators market bundled data and voice offering, EC would view this combination “as comprising 2 commercial offers,” policy said. In cases such as video telephony, when voice element can’t be separated from other components, “provision of voice services cannot be considered as the subject of a commercial offer,” EC said. It said supplement provided “general guidelines” and didn’t bar national authorities from making “specific assessments when justified by specific circumstances.”

Largest AT&T affiliate TeleCorp PCS said it added 145,231 customers in quarter ended Dec. 31. TeleCorp PCS was created last year after merger of TeleCorp Wireless, which added 95,656 subscribers in 4th quarter, and Tritel, which added 49,575. Combined entity had year-end subscriber base of 666,425. Tritel said it expected to take premerger one-time charge related to reductions in roaming revenue. TeleCorp PCS said that was likely to mean $4 million reduction in roaming revenue guidance for quarter for Tritel.