R/L DBS Co., formerly Continental Satellite Corp., received 36-month extension from FCC Thurs. to start alternative DBS service that has struggled to get off ground during past 4 years. R/L argued in request for extension that legal haggling, FCC delays and changes in market had made it difficult to raise money to launch satellite and meet milestones. Company said it has invested $30 million in DBS business, including $14 million toward design and construction of satellite. EchoStar, which opposed Commission action, questioned whether $14 million payment “constituted significant effort” toward building $250 million satellite. EchoStar also said $15 million went toward acquisition of Continental stock by Loral and R/L DBS hasn’t made additional progress toward arranging remaining financing for satellite. Under terms of its construction permit, R/L DBS originally was required to be in operation by Aug. 15, 1999. Commission said additional time will allow company opportunity to implement “innovative, regionally targeted” DBS service.

Last recession year for TV advertising was 1991, and “it appears the industry is heading that way again in 2001” in terms of national spot, prominent stock analyst predicted last week in face of broad indications of major cutbacks by largest TV advertisers. First quarter of year looks particularly bad for TV stations, he and others predicted. Radio on other hand will show ad growth of 7.5-8% next year, according to Gary Fries, pres. of Radio Ad Bureau. “Radio is 80% a local business with revenue sources that defy national trends,” he said.

Joint venture company has been established in Japan to administer use of Bluetooth logo on compliant products. Toshiba will own 80.5% of as-yet-unnamed company, which will be capitalized at Yen 40 million and will start operations in Feb. Other partners are Taiyo Yuden (with 10% share) and IBM Japan (9.5%). Partners said new company is expected to “make it much quicker and more convenient for Japan-based manufacturers to obtain qualification of Bluetooth-enabled products, and is also expected to contribute to shorter development terms and lower associated costs.”

OPASTCO said in Dec. 28 letter to House and Senate leaders that repealing estate tax is one of its top priorities. It’s “one of the most important actions Congress could take to encourage further economic growth in rural communities,” OPASTCO said. “For small towns, the sale of a family-owned business due to estate tax obligations adversely impacts the entire community,” said assn. which represents rural telcos.

FCC Common Carrier Div. asked for comments on request by Elastic Networks for waiver to permit registration of its EtherLoop Modem, trade named Stormport 400. Elastic Network said modem conforms to all Part 68 requirements except signal power limitations. Company said waiver would further public interest by giving consumers more choices for advanced telecom services, particularly in rural areas that don’t have ADSL service. Comments are due Jan. 22, replies Jan. 29. Comments should refer to file number NSD-L-00-254.

NorthPoint Communications announced Fri. it pulled out of VersaPoint, joint venture with European broadband operator VersaTel, as part of its effort to reduce spending. NorthPoint sold its 50% share of venture to VersaTel which will relieve NorthPoint of capital commitment worth about $23.2 million, assume VersaPoint liabilities and pay NorthPoint about $6.5 million in cash. VersaPoint began commercial service in summer, offering retail DSL services in VersaTel’s core market of Benelux area and northwest Germany. “Under the circumstances, we do not have the resources to support this venture,” NorthPoint Chmn. Michael Malaga. Verizon, which had planned to combine its DSL business with NorthPoint’s, cited “deterioration” in NorthPoint’s business operations and financial condition as reasons for ending venture.

FCC would be taking “serious misstep” if it delegated reciprocal compensation and LEC-wireless interconnection decisions to state regulators, CTIA said in letter sent to Commission Fri. FCC has indicated it may take that route but “such a decision would be contrary to law” and would run counter to agency’s previous position in regulating commercial mobile radio service (CMRS), CTIA Gen. Counsel Michael Altschul wrote. “At issue is the fundamental question of the Commission’s jurisdiction -- over CMRS providers in general and LEC-CMRS interconnection specifically -- and its decision to abandon its regulatory responsibilities and delegate them to the various states,” letter said. “One certain fact has resulted from the extensive litigation surrounding the Commission’s implementation of the interconnection provisions found in the Act,” Altschul wrote: “The FCC has the sole authority to establish the terms of and to review LEC-CMRS interconnection agreements.”

Motorola said Fri. it will unveil its iRadio satellite car radio system at Consumer Electronics Show at Las Vegas Convention Center this week. New car radio system is one of many digital radios that companies are planning to compete with XM and Sirius Satellite Radio for customers, industry officials said. IRadio, developed by Motorola Telematics Unit is expected to offer satellite services and interact with Internet through digital cellular networks which are primarily used for voice calls. Company is hoping to integrate iRadio with satellite navigation systems and emergency service products that are standard in many cars and trucks. CES is being used to showcase prototype with hopes of attracting manufacturer of car audio products, firm said. Motorola believes “right company” could have products ready for introduction to marketplace in one year, spokesman said.

Kan. Corp. Commission said its 2000 Lifeline public awareness campaign, which ran from June through Oct., was success. Agency said campaign boosted Lifeline enrollment with Southwestern Bell Telephone and Sprint/United by 50%. Program uses federal and state universal service resources to provide $10.50 discount on monthly local service charges.

Cyclone-3 rocket carrying 6 Russian communications satellites failed after launch Thurs., resulting in loss of all 6 spacecraft. Spokesman for Strategic Missile Forces said first and 2nd stages of rocket functioned normally, but 3rd failed. Launch failure from Plesetsk cosmodrome in Russian Arctic is 2nd in 2 months for agency, as EarthWatch lost satellite in Nov. 21 launch on Cosmos-3 from Plesetsk (CD Nov. 24 p4). Satellites burned up after re- entry into atmosphere, scattering debris into Arctic Ocean, but officials said debris caused no damage. Russian Aerospace Agency suspended launches on Cyclone-3 rockets until agency can determine cause of failed launch, agency spokesman said. Similar failure nearly cost agency 6 Strela military satellites 2 years ago, but agency saved them.