WSNet said it signed strategic agreement with Ashe County Cable TV of Fleetwood, N.C., to offer its subscribers privately branded direct-to-home (DTH) digital satellite TV service using WSNet’s satellite programming technology. Agreement marks official entry of WSNet into small and rural franchise cable market. Other terms of deal weren’t announced.

Network Access Solutions (NAS) said SBC converted NAS preferred stock into common and agreed to resell NAS’s broadband services in Verizon territory. Preferred shares, which were issued as part of $75 million SBC investment in NAS in March, were converted into 2.6 million common shares at $31 per share. “This will help SBC flesh out our DSL network” in northeast U.S., SBC executive said. NAS also will assign to SBC the central office sites in BellSouth and Qwest territories that were built under agreement between 2 companies and Telefonos de Mexico. NAS will take $24 million reduction in “paid-in capital” in 4th quarter to reflect transaction.

Integra Telecom said it secured $41 million in equity financing from shareholders including Bank of America Capital Investors, Boston Ventures, Navis Partners, Shaw Venture Partners. Investment will be used to expand Integra’s customer base in its regional markets and pushes its total financing in 2000 to $252 million. Integra CEO Dudley Slater said he was “gratified” by market response since CLECs have been struggling for financing. Integra provides telecom services to small and midsized businesses.

“Nothing would be gained by further delaying a decision” on core DTV must-carry issues, NAB Pres. Edward Fritts said in letter Thurs. to FCC in which he said Commission could defer decision on must-carry itself while adopting some “rules of the road” for carriage of DTV stations. He said there would be no benefit in delay, “certainly nothing that would be worth the harm to the progress of the transition.” NAB also pressed FCC for requirement that all new TV sets have tuner capable of receiving DTV.

GiantLoop Network and 360networks announced alliance in which latter will be GiantLoop’s preferred provider of N. American and transatlantic broadband services. In addition, 360 networks made “very minor” equity investment in GiantLoop, Waltham, Mass.-based fiber network.

Rural Task Force (RTF) asked FCC to act within 45 days on task force proposal for rural universal service revisions. In Jan. 3 ex parte letter, RTF said Federal-State Joint Board on Universal Service already had developed “extensive record” of comments on recommendation, so swift action was plausible: “Because the recommendation now in front of the FCC is unchanged from that put out for comment by the Joint Board, it is highly unlikely that an additional round of comments from the FCC is required.” If FCC decides to seek more comments, it ought to complete comment process in 30 days, RTF said. RTF Chmn. William Gillis said group realizes Commission had many demands but “each additional day of delay in implementing universal service reform for rural carriers puts at risk much-needed investment in rural America.”

House Republicans surprised few with their choices for new committee heads late Thurs. Choices still had to be ratified by rank-and-file at our deadline. As expected, Telecom Subcommittee Chmn. Tauzin (R-La.) was promoted to Commerce Committee chmn., and Subcommittee Vice Chmn. Oxley (R-O.) was given expanded Banking Committee, apparently clearing way for Rep. Stearns (R-Fla.) to take over Subcommittee. Rep. Sensenbrenner (R-Wis.) won Judiciary Committee, as expected, while Rep. Thomas (R-Cal.) gained Ways & Means.

Offering optimistic view in generally downbeat industry, McLeod USA told analysts Thurs. it expected its 4th-quarter revenue would exceed expectations at $408 million, with full-year revenue exceeding $1.4 billion. In conference call with analysts, company didn’t address projections that McLeod would face per- share loss for both periods but said its operating profit would be up. COO Stephen Gray said McLeod had 1.1 million access lines at yearend and its “fundamentals have never been stronger in terms of people, assets and execution.” CEO Clark McLeod said company had been “almost boring with our predictability.” He also announced Gray had been named co-CEO, reflecting fact that he and Gray have been sharing leadership in company. “Today we recognize that with our titles,” McLeod said. In answer to question, Gray said company’s acquisition of CapRock Communications would add $70 million to year-end revenue and offset operating profit by negative $2-$3 million. Later in day, Moody’s assigned B1 rating to $450 million in senior notes that McLeod said it planned to offer. Moody’s also retained negative outlook for all McLeod ratings to reflect “the risk of a company in its high-growth phase.” In addition, “generated cash flow is still modest relative to the company’s debt,” Moody’s said. Rating service said, on other hand, it took into consideration McLeod’s “strong management team, good strategy and established track record of strong business plan execution.” McLeod’s shares were up almost 19% at end of day to $19.88.

Qwest proposed settlement of pending Ariz. class action lawsuit filed against its predecessor, U S West, that would give credits ranging from $15 to almost $1,500 to estimated 300,000 customers who have suffered phone installation delays in last 8 years. Qwest filed $22 million settlement offer Wed. in Maricopa County Court, offering to compensate customers who suffered service installation delays between Jan. 1, 1993, and Nov. 20, 2000. Court hearing on settlement offer will be April 23. Current Qwest customers would get automatic bill credit while former customers would receive checks. Residential refund would range from $15 for 4-day delay to $880 if delay exceeded 5 months. Business refund would range from $59 to $1,465 per line. Credits for delay on additional residential lines would be $3. Qwest wouldn’t have to admit wrongdoing. Ariz. suit is outgrowth of original suit filed in 1997 in Denver alleging U S West had diverted resources from local service to fund new wireless and cable ventures, contrary to customer interests. Qwest last year settled Colo. suit for $36 million in refunds to 244,000 customers and similar N.M. suit for $6 million to 70,000 customers.

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.