AOL and Nokia reached multiyear agreement to market enhanced microbrowser technology and to promote wireless standards such as Wireless Application Protocol (WAP), terms not disclosed. “WAP is the most widely adopted wireless standard in the world among carriers and handset manufacturers and it makes sense for us to work to support that standard,” AOL Wireless Pres. Dennis Patrick said. Companies said agreement marked first extension of Netscape brand to microbrowser market.

FCC didn’t meet regulatory flexibility requirements with rulemaking on DTV children’s TV obligations (MM 00-167), Small Business Administration (SBA) said in letter to FCC Chmn. Kennard. SBA said it didn’t question regulatory goal of improving children’s TV, but said Commission “did not describe a vast majority of the compliance requirements… and their impact on small firms. Nor did it discuss significant alternatives.” FCC should submit supplemental Regulatory Flexibility Analysis required by Regulatory Flexibility Act, SBA said. Although FCC listed rulemaking proposals, SBA said it didn’t provide adequate information about costs and alternatives of such proposals as requiring broadcasters to devote 3% of their air time to children’s programming. It said that proposal would require broadcasters to add programming whenever they added channels, and FCC didn’t provide information about cost of additional programming. SBA raised same questions about other proposals, including technical format rules, menu approach, daily core programming obligation, datacasting, providing content information to publishers and others, preemption rescheduling, commercial tie- in limits. FCC should consider alternatives such as delaying enforcement of rules because of cost to small broadcasters of DTV transition itself, SBA said, as well as setting reduced requirements for small broadcasters that have access to fewer resources. Meanwhile, in comments on rulemaking, state broadcast associations said it was too early to impose “burdensome” children’s TV rules on DTV because they “would hamper innovative uses of the digital spectrum.” State groups also said FCC didn’t have legal right to impose quantitative requirements for programming, and rules would raise First Amendment concerns. Center for Media Education immediately rejected constitutionality argument. “The public owns the airwaves, not the broadcasters,” CME Pres. Kathryn Montgomery said.

By 4-1 vote, FCC adopted notice of inquiry (NOI) on interactive TV (ITV) services Thurs., starting formal proceeding that it promised when it approved AOL’s takeover of Time Warner (TW) with additional regulatory conditions late last week. But Commission backed away from weightier, more urgent proposed rulemaking on ITV issue that its Cable Bureau staff had recommended, bowing to strong lobbying from cable, to disappointment of consumer advocates and other cable critics. Move follows regulatory conditions imposed on AOL-TW deal last month by FTC that prohibited merged company from interfering with content supplied by other ISPs and ITV providers or discriminating against such competitors (CD Dec 15 p1).

Changes at Manatt, Phelps & Phillips: Robb Watters, Internet Alliance, named to govt. and international trade and policy unit; Luke Rose, ex-staff of Rep. Wilson (R-N.M.), legislative adviser; Walter Gonzales, ex-staff of Rep. Green (D-Tex.), legislative asst… Terry Haines, ex-Boland & Madigan and former FCC chief of staff, named staff dir. and chief counsel for newly created House Finance Services Committee… Jed Petrick promoted to pres.-COO, WB TV Network… Jacqueline Bosque adds Tucson office leadership to vp-gen. mgr., Radio Unica, Phoenix… Aaryn Slafky advanced to dir.-communications, National Telephone Coop Assn… Changes at Net2Phone: Scott Anderson, ex-Exist, named exec. vp-sales; Glenn Williams moves up to exec. vp-business and legal affairs; Bruce Shoulson appointed gen. counsel; Brian Haimm promoted to exec. vp-strategic alliances… Changes at Sinclair Bcst. Group: Scott Sanders adds gen. mgr. of WRLH-TV Richmond to gen. mgr., WTVZ-TV, Norfolk; William Lane adds station mgr. to gen. sales mgr. title… Changes at OpNext: Harry Bosco, ex-Lucent, named pres.- CEO; Minoru Maeda, ex-Hitachi, appointed COO; Chris Lin, ex- Lucent, becomes senior vp-global sales and mktg… Richard Murphy, ex-Rogers Wireless Communications, named COO, congruency… Janice Cooley promoted to dir.-work force planning and talent acquisition, Cox Communications.

FCC Wireless Bureau is seeking comments on request by Verizon Wireless to postpone 700 MHz auction beyond scheduled date of March 6. Company wrote to FCC Wireless Bureau Chief Thomas Sugrue Jan. 18, asking that auction be postponed to ensure that there would be “reasonable interval” after close of current C- and F- block auction, bureau said in notice released Thurs. Verizon Wireless contended in letter that if auction were held on schedule, participants wouldn’t have enough time to “accurately assess” their interest in acquiring additional spectrum. FCC has Feb. 2 deadline for participants to file short-form applications to participate in bidding. Comments are due Jan. 24. Most recent postponement of auction came last year, when FCC agreed to move it from Sept. 6 at request of several carriers. Verizon Wireless is seeking 2-month delay as “prudent,” although it argues that longer delay is required. Verizon cited issues that remained with incumbent analog broadcasters in Ch. 60-69 spectrum that’s at stake in auction. Carrier said further notice of proposed rulemaking on possible mechanisms for clearing band in advance of DTV transition date of 2006 still was pending. “Consequently, no new band-clearing mechanisms have been established and there is no greater certainty today about the prospects for clearing the 700 MHz band than there was last summer,” Verizon wrote.

TruePosition filed lawsuit in U.S. Dist. Court, Wilmington, Del., alleging that SigmaOne Communications had infringed on 3 patents related to TruePosition’s network-based wireless location systems. TruePosition is seeking unspecified damages and injunction that it says would bar SigmaOne from further infringing on patents. Suit focuses on 3 TruePosition patents that address location on wireless network control channel, combining processed location signal with collateral information and locating phones with several location techniques.

Utah Gov. Mike Leavitt (R) called for collaboration between state’s telecom carriers and its “professional communities” to encourage high-tech companies to locate in state. In his “State of the State” address, he also called for coordinated efforts to bring all of state’s communities into “New Economy” by expanding high-speed telecom services in rural areas, announced formation of new “Utah/Silicon Valley Alliance” to acquaint new entrepreneurial startups with advantages of locating in Utah, called for state- funded bonuses of up to $20,000 for teachers of advanced technology and math skills who commit to staying at least 4 years in Utah high schools. He also announced associated life-style- oriented initiatives addressing education, housing, water and open space.

Don’t hold your breath for FCC release of reciprocal compensation order because there’s nothing circulating right now, Comr. Furchtgott-Roth told reporters Thurs. at his monthly breakfast meeting. He said “outside parties” usually knew more than he did but this was exception: “I've never seen an item where the outside is more out of touch than reciprocal compensation. There isn’t an item being circulated. It was pulled back ages ago. It ain’t happening this week.” Furchtgott- Roth also said he was “cautiously optimistic” that “change in Administration will lead to improvements at the Commission,” such as toning down FCC’s merger review role. FCC chairman is “very powerful position relative to other agencies” because of its “CEO function,” Furchtgott-Roth said. In that role, chairman can “initiate new programs or stop discretionary programs.” Merger review is one of those discretionary programs because FCC doesn’t have statutory requirement to review mergers, other than acting on license transfers, he said. He said he didn’t anticipate deadlocks if agency ended up with 4 commissioners, split 2-2 on party lines. FCC rarely divides on party lines to begin with, he said. “A lot is made about partisan divisions but I don’t see it.” He again criticized FCC for “collusion with the FTC” because staff of 2 agencies worked together on some aspects of review of AOL takeover of Time Warner. Each agency has its own mandate in reviewing such transfers and it’s “very improper” to coordinate those reviews, he said.

Bill introduced in Ark. House (HB-1229) would ban use of handheld mobile phones by drivers of moving vehicles except for calls to 911 or those made by emergency service personnel. Drivers would be allowed to use hands-free phone models while on road. There would be only warning without penalty on first offense, with $50 fine for subsequent offense.

Pacific Bell and Verizon are warning Cal. customers that they need to ensure state’s rolling electric blackouts don’t knock out home and office telephone systems. Although network switching and transmission systems have backup power sources, companies are cautioning that most cordless phones, answering machines and multiline phone systems in homes and offices won’t work without utility power. Companies urged customers to get at least one basic telephone that doesn’t require external power, or make sure they have backup power source for their phones and an extra charged-up battery for their mobile phones.