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.

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.

Fla. PSC approved BellSouth plan to refund $48 million to residential and business customers. Refund is final step for BellSouth to complete $209 million refund required under 1994 rate settlement with PSC and Fla. Office of Public Counsel. Refunds will be paid out as bill credits of $3.50-$5 per residential line and $10-$15 per residential line, and are to be completed by Feb. Meanwhile, PSC ordered prepaid calling card provider RJM Card Services to show cause within 21 days why it shouldn’t be fined $22,000 or have its operating authority cancelled for PSC rule violations. Company is accused of failing to list all surcharges and fees on its prepaid cards and of ignoring PSC staff inquiries regarding complaints against company.

VSB/COFDM report sent to key broadcasters late Fri. included “some good news and some bad news” for both DTV modulation systems, we're told. Reports, based on field testing completed in mid-Dec., were said to have been adopted unanimously by technical groups, which include VSB critic Sinclair Bcst. “I think it was pretty well balanced,” one official familiar with report said. He discounted claim that report strongly supports VSB (CD Dec 29 p4). Technical groups preparing report have kept tight lid on results, with even steering committee members generally not told in advance, we're told. In letter of appreciation to technical group members, Project Chmn. Gary Chapman of LIN TV and Vice Chmn. Craig Dubow of Gannett said they're “confident that the process was inclusive, fair and scientifically sound,” but they admitted that “even these most comprehensive and authoritative tests cannot fully resolve all issues. Opinions may differ as to the precise implications of the data.” Steering Committee is to meet Jan. 10 to discuss results and submit reports to MSTV board. Then, series of meetings will lead up to joint session of NAB and MSTV boards Jan. 15 in Carlsbad, Cal. Broadcasters spent $2.1 million on testing of competing DTV modulation schemes, following what they acknowledged to be “stalemate” as result of dispute over benefits of each system. TV group CEO told us “the direction we take will be charted” at industry summit of station executives in Washington Jan. 11. But, he said, unless study shows COFDM with “an overwhelming preference” industry should proceed with VSB. Then, he said, “we will need to press the FCC very, very hard” for such things as digital must carry and TV networks for more digital programming.

Va. Corp. Commission approved price cap regulation plan for Verizon South (formerly GTE) that replaces indexed rate-of-return system in place since 1995. Under new cap system, approved Thurs. with effective date Mon., carrier’s basic exchange rates are frozen through 2003. Rates for other noncompetitive services are under caps indexed to 50% of gross domestic product price index, with annual adjustments. Competitive services are flexibly priced. Carrier won’t be allowed any rate increases if it fails to meet state service quality standards. Earnings aren’t regulated. Plan for state’s 2nd largest incumbent telco is similar to plans for other large Va. incumbents. Commission in mid-Dec. paved way for adoption of price caps by approving settlement providing for $200 million refund to customers of overearnings under previous earnings-based plan.

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.

Ga. PSC said number of residential customers on state “No Call” telemarketing list topped 200,000 in Dec. Customers must pay $5 every 2 years to keep their name on list, which began taking names in Jan. 1999. Current total is 204,032 names. Telemarketers who call names on list can face fine of up to $2,000 per call. PSC said over 1,600 telemarketers from U.S., Canada and Carribean have accessed no-call database since its inception.

N.J. Board of Public Utilities extended Verizon’s price regulation plan for additional year, to Dec. 31, 2001, after allowing carrier to withdraw controversial proposed replacement plan that drew strident opposition from customer and competitor interests. Board directed Verizon to file new proposal by Feb. 15 for regulation after 2001, which must adhere to set of requirements board said are intended to address deficiencies that sparked much of opposition to this year’s Verizon proposal. New plan, board said, must include basic service option without additional features. Discredited Verizon plan had proposed doubling basic rate by bundling group of calling features with dial tone. Other requirements Verizon must address in new regulation plan include state universal service support, expanded Lifeline eligibility, service discounts for schools and libraries, service quality standards for wholesale and retail services, cost support for any proposed rate changes, analysis of company’s financial condition, and quantification of merger-related savings.

After a year of tough negotiations and numerous retransmission consent extensions, Comcast and Disney announced Fri. agreement in principle on carriage of over-the-air signals of ABC owned stations in MSO’s markets. Spokeswomen for companies declined to divulge terms of agreement, citing confidentiality. Agreement covers Disney products and services including ESPN, ESPN2, ESPN Classic, ESPN News, Disney Channel, Toon Disney, SoapNet and retransmission consent for ABC-owned stations in Philadelphia, N.Y., L.A., Chicago, Flint, Mich., and Toledo, Ohio. Current ESPN and Disney Channel programming agreements were set to expire Dec. 31, 2000. Latest in series of retransmission consent extensions was also due to expire Dec. 31 (CD Dec 7 p9). Characterizing agreement as “important” one, Disney Pres. Robert Iger said it’s “clearly in the best interests of our viewers on all the Comcast systems.”

FTC gave AT&T Broadband final legal clearance to complete sale of Salt Lake Tribune newspaper to Denver-based Media News Group, nation’s 7th largest newspaper chain. Decision was given Dec. 22 but official publication was delayed. Companies cleared first legal hurdle Dec. 15 when U.S. Dist. Court, Salt Lake City, denied request by newspaper’s managers to block sale on grounds AT&T had promised that managers’ group would have right to manage Tribune until 2002, when managers would receives option to buy paper. Managers had unsuccessfully contended new ownership would bring changes that would violate their management and option agreement. Court ruled managers’ pact with AT&T was tentative and not binding since major issues like price hadn’t been resolved. Managers didn’t appeal decision after court assured them it would be willing to hear any complaint involving violations of managers’ rights by new owners. AT&T acquired Tribune when it bought TCI in 1999. TCI bought paper in 1997.