Ind. Utility Regulatory Commission (IURC) adopted first comprehensive update of service quality rules in 30 years. New rules are intended to take effect in May, pending legal review by state attorney gen. Among other changes, new rules covering incumbents and CLECs alike would require faster carrier responses to customer service complaints, toughen standards for outage restorations, require performance to be monitored at wire center level rather than by statewide averages. IURC said it began work on quality rule rewrite in late 1999, before last summer’s flood of service complaints against Ameritech.

FCC unanimously adopted notice of proposed rulemaking (NPRM) that eyes frequencies, including those now occupied by military users, for 3rd-generation and other advanced wireless services. Commission also denied petition by Satellite Industry Assn. (SIA) seeking additional spectrum for mobile satellite services (MSS), move that Multichannel Multipoint Distribution Service (MMDS) licensees opposed (CD Aug 30 p1). FCC adopted notice Dec. 29, meeting White House’s year-end deadline for approving item, although text hadn’t been released by our deadline.

Verizon Wireless said it added 1.2 million customers in quarter ended Dec. 31, increasing its year-end total to 27.5 million, with 16% subscriber growth rate -- 3.7 million new customers -- compared with 1999. Verizon Wireless said growth had been fueled in part by surge in contract customers, which represented more than 99% of new subscribers in 4th quarter, compared with 60% year earlier. Customer turnover in quarter remained unchanged from year ago at 2.6%. Carrier also said more than half of its customers now use digital service and more than 750,000 are using its wireless data offerings.

Entravision Communications said it closed on purchase of 2 New England TV stations: WUNI (Ch. 27, Univision) Worcester, Mass., from Jasas Corp. for $47.5 million and WHCT-TV (Ch. 18, Valuevision) Hartford from Astroline Communications for $18 million. WHCT-TV call letters will be changed to WUVN-TV and it will affiliate with Univision, Entravision said, giving group owner 18 Univision affiliated TV stations. WUNI Gen. Mgr. Gary Marder also was named to same post at WUVN-TV. In separate deal, Hubbard Bcstg. said it closed on $9.5 million purchase of KAAL (Ch.6, ABC) Austin, Minn., from Gocom Holdings.

TMI Communications and EMS Technologies unveiled packet data terminal for U.S. transportation industry Jan. 3 after FCC approved modification in TMI’s license that allowed them to operate EMS PDT-100 packet data terminal in U.S. exclusively on TMI mobile satellite network. Firm said technology gives truck fleets tracking and messaging capabilities, doesn’t interfere with emergency communications services, reduces costs.

In defiant response to AT&T Broadband’s request for waiver of franchise fees on cable modem service (CD Jan 3 p3), Lakewood City, Cal., warned company that withholding payment of franchise fee “will jeopardize your franchise or subject you to penalties.” Accusing AT&T of misstating federal policy in its letter requesting waiver, Asst. City Mgr. Michael Stover said city should neither agree to waive franchise fees nor indemnify AT&T against various potential costs. “We expect AT&T Broadband to continue to pay all required franchise fees, including those based on cable modem service revenue,” city said. Referring to AT&T’s contention that it passed through franchise fee on cable-delivered Internet service to subscribers under federal law, he said Telecom Act “only permits cable operators to pass through increases in franchise fees on regulated cable service rates. Federal law does not authorize or otherwise address the ability of cable operators to pass through franchise fees on cable modem and other services.” Although federal law allows cable operators to include line item on subscriber bills indicating amount assessed as franchise fee, Stover said including line item was “entirely different concept” than passing through those costs to subscribers. In City of Dallas v. FCC, 5th U.S. Appeals Court, New Orleans, “made it clear that, even when such a line item is included on subscriber bills, franchise fee are imposed upon cable operators, not on subscribers,” he said. As for concerns raised by AT&T over potential class action lawsuits, he said that since franchise fees were paid by AT&T and not subscribers, there were no fees collected from subscribers that could be refunded. “This imaginary exposure to litigation is not a legitimate basis for not paying the required franchise fees.” However, Stover proposed 2 options to allay AT&T concerns about potential litigation: (1) Refrain from itemizing franchise fees on cable modem service because federal law doesn’t require such action. Doing so won’t reduce amount company can collect from subscribers “because you can essentially set your rates at any level you choose.” (2) Agree, as alternative, to pay 5% telecom franchise fee on cable modem service. That appears to be consistent with 9th U.S. Appeals Court, San Francisco, ruling classifying cable modem service as telecom service, he said.

McLeod USA announced plans to offer $450 million of its senior notes due 2009 and said it expected to meet or exceed market expectations for 4th quarter and year-end. Company will host conference call today (Jan. 4) to discuss offering and expectations.

Citing lack of funding and fall-off in membership, founder Dorothy Swanson announced Viewers for Quality TV would shut down early this year. Founded in 1984, Va.-based group led efforts to keep on air many low-rated TV network programs that members considered high-quality.

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.

Ida. Dept. of Consumer Affairs began accepting names for its no-call list under 2000 state law that will take effect May 2. Ida. charges $10 registration fee for first 3 years on list, plus $5 renewal fee to keep name on list another 3 years. Ida. Attorney Gen. Albert Lance and Gov. Dirk Kempthorne were among first to sign onto list Tues., along with legislative leaders. Those who register by March 31 will be on first list published in April. Those who miss deadline will be on first quarterly update in July. Violators face penalties of $500 per call on first offense and up to $5,000 per call for subsequent offenses. Ida.’s no-call law exempts calls from tax-exempt nonprofit organizations and from businesses calling their established customers.