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.

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.

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.

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.

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.

With FCC overdue to act on reciprocal compensation, Bell companies and CLECs competed Wed. to present their positions to Commission and news media just in case agency schedules vote on issue at its Jan. 11 agenda meeting. If item is placed on next week’s agenda, all lobbying will have to stop tonight (Jan. 4) under agency’s “sunshine” rules. FCC hasn’t said whether it will take up reciprocal compensation at meeting, but it originally planned to vote on issue by year’s end and then deal with broader proceeding on intercarrier compensation soon afterward. “It’s ripe for decision,” industry source said.

Congress returned Wed. and immediately began wrangling over its rules and makeup for 107th session. Democrats questioned Republican plan to break off financial services oversight from the House Commerce Committee and give it to Banking Committee to resolve battle for Commerce leadership between Reps. Tauzin (R- La.) and Oxley (R-O.) (CD Jan 3 p1). However, it appeared at our deadline proposal would pass. Another unsettled issue in both houses was what percentage of each panel’s seats would belong to Democratic minority. In House, Democrats agitated for ratio closer to current 221-211 party breakdown (51-49%). Last year, Republicans held 29 of 53 Commerce Committee seats (54.7%) and 21 of 37 Judiciary positions (56.8%), and Democrats said they should get 2 more on each panel. GOP leaders offered counterproposal under which each party would get one additional seat on each major committee. Meanwhile, Democrats in Senate continued to push for equal representation on committees since chamber is split 50-50. Last year, Republicans held 11 of 20 Commerce seats (55%) and 10 of 18 on Judiciary (55.6%). GOP in House was expected to begin naming chairmen today (Thurs.), but committee assignments can’t be finalized until agreement is reached on panel ratios.

Tex. PUC Comr. Judy Walsh resigns to take position with President-elect Bush’s energy policy development team; she will stay on until Tex. Gov. Rick Perry (R) appoints replacement to fill remaining 3 years of her term. Walsh was first appointed to PUC in 1995 by then Gov. Bush… WorldCom names Donna Sorgi, northern region public policy vp, to head its Washington-based federal regulatory group… Rosemary Kimball moves from FCC Office of Media Relations to press liaison at agency’s Consumer Information Bureau… Douglas Hanson, CEO, Internet Commerce & Communications, named CompTel chmn., replacing Global Crossing’s Anthony Cassara, who stepped down… Named partners in Wiley, Rein & Fielding law firm: Mary Borja, John Burgett, Tanja Hens, Scott McCaleb and Suzanne Yelen; named of counsel to firm are Christopher Kelly, ex-U.S. Patent & Trademark Office, and David Southall, ex-Information Management Consultants.

VoiceStream is partnering with RealNames to provide keyword wireless Web searching for Web-enabled cellphones. For example, typing in Zagat instead of full URL would take user directly to Web site. New Internet address system uses network of routers and proprietary “in-memory” databases created by RealNames that basically is “layered” over Internet, said Chief Technical Officer Nico Popp. In Nov., RealNames partnered with Phone.com, mobile internet software maker, by putting RealNames Keyword Navigation System on Phone.com’s UP.Link server. RealNames key word system is multilingual -- Japanese Kangi, for instance can be entered into system, Popp said.

Cal. Gov. Gray Davis (D) declined to name immediate replacement for PUC Comr. Josiah Neeper, who left agency Jan.1 when his term expired. Political observers in Cal. said Davis might have delayed appointment to ensure bipartisan vote this week on controversial proposal for major emergency increase in retail electric rates. State’s 2 largest electric utilities say boost is necessary to stave off imminent bankruptcy due to soaring wholesale electric prices. Utilities say they need 30% boost, with PUC reportedly prepared to grant up to 20% in vote this week. Departure of Neeper leaves PUC with 2-2 partisan split. Observers said that if Davis had filled Neeper’s seat, his appointees would form PUC majority and his administration would bear all political heat for rate boost.