CARLSBAD, Cal. -- NAB and MSTV decided there’s “insufficient evidence” to continue DTV transmission tests of 8-VSB and COFDM and said industry should stay with 8-VSB as standard. Action was taken here Mon. at joint meeting of NAB TV board, MSTV board and digital steering committees of both groups and following digital “summit” of TV broadcasters in Washington last week (CD Jan 12 p9). Straw vote of participants at Cal. meeting was 29-3 in favor of 8-VSB with dissents from Pax TV, Sinclair Bcstg., Pappas Telecasting. Only Dean Goodman of Pax TV dissented in following formal vote by NAB TV board.

FCC’s compromise approval of AOL takeover of Time Warner (CD Jan 16 p1) received generally good early reviews among Hill staffers. While instant messaging (IM) conditions won’t have immediate impact, said one, at least “FCC has put its imprimatur on IM interconnection.” Less pleased was economist Rick Warren-Boulton of Microeconomic Consulting Research & Assoc. (MiCRA), which submitted report to FCC detailing dangers of allowing AOL not to interconnect to IM competitors. Warren-Boulton told us FCC’s conditioning its IM interconnection requirements on AOL-Time Warner’s (TW) offering new broadband IM services wasn’t “the kind of thing that an economist would construct.” He said there were 2 possible outcomes, and FCC’s order wasn’t ideal either way: (1) AOL-TW offers new services quickly, in which case FCC “would be better off saying just do it.” (2) AOL-TW delays new offerings to avoid requirements, creating “problem for technical change in general.”

Verizon resubmitted its application to FCC Tues. to offer long distance service in Mass. under Sec. 271 of Telecom Act. Verizon Senior Vp Thomas Tauke said new version incorporated company’s original application “and adds further evidence demonstrating that the company provides competitors nondiscriminatory access to DSL-capable telephone lines.” Verizon filed original petition Sept. 22 but withdrew it Dec. 18 after FCC Common Carrier Bureau said it didn’t have enough information to substantiate Verizon’s claim that it offered competitors nondiscriminatory access to DSL lines. Similar concerns were expressed by Dept. of Justice in Oct.

Qwest said it’s buying back 22.22 million shares of its stock from BellSouth for $1 billion ($45 per share). That will leave BellSouth with 51.8 million Qwest shares -- 3.1% of those outstanding. BellSouth also agreed to buy $250 million in services from Qwest over 5 years. BellSouth will pay for those services in Qwest stock over 4-year period. Qwest said it would continue its business relationship with BellSouth, which was developed to help both companies more effectively provide large business customers with complete packages of business services. Qwest said it agreed to repurchase its shares because it thought “Qwest stock is a good value at $45 per share.” BellSouth said funds would go toward its data and wireless operations.

PanAmSat said it had record $1.02 billion revenue and $694 million in earnings before interest expense, income taxes, depreciation and amortization (EBITDA) of 2000, up from $810.6 million revenue and EBITDA of $618.8 million last year. Net income edged up to $125.5 million from $122.2 million in 1999. Company said 4th-quarter earnings were $202.9 million, with $136.2 million in EBITDA. Company said it also signed $400 million in new long-term service agreements in 4th quarter. PanAmSat also projected total revenue of $1 billion for 2001, including $205-$210 million for first quarter.

Moody’s placed senior unsecured A2 debt ratings of Portugal Telecom (PT) on review for possible downgrade following carrier’s disclosure that its Brazilian subsidiary was buying 49% of voting rights of Brazilian wireless carrier Global Telecom. PT’s Brazilian arm, Telesp Celular Participacoes (TCP), is buying stake for $1.2 billion, including assumed debt, giving it overall investment of 83% in company. Moody’s concluded that move was in line with PT’s international growth strategy but raised concerns that “the magnitude of the investment may constrain the financial ratios of the group over the near term, as well as expose it to a higher risk operating environment.”

Datacasting company iBlast said it began field tests of its broadcast data service at TV stations KTLA L.A., KICU-TV San Jose, KGTV San Diego, KPNX Phoenix-Mesa, WOFL Orlando. IBlast expects to deliver data to PCs via network of 225 stations when it starts commercial service. Data being delivered include video clips, software, MP3 audio, games, other broadband content. Field tests are to last through March and company expects to reach 50% of U.S. households by end of year.

Disney filing at SEC Fri. disclosed that CEO Michael Eisner received $11.5 million bonus in fiscal 2000, plus $813,462 salary and 2 million shares of Disney Internet Group. Disney said large bonus was given as result of company’s “very strong year.” Eisner had salary of $750,000 in 1999, when profits were down, didn’t get bonus. In fiscal 2000, Disney reported profits rose 26% to more than $2 billion. Pres.- COO Robert Iger received $1.08 million salary, $5 million bonus, 100,000 Internet shares. Board Chmn. Sanford Litvack’s salary was $787,500, plus $2 million bonus, 400,000 Internet shares.

Buyout firm Forstmann, Little agreed to buy Citadel Communications for $1 billion plus assumption of $1 billion debt, companies said. Citadel owns 143 FM and 66 AM stations in 44 markets.

WorldCom asked Mo. PSC to suspend its review of Southwestern Bell Telephone (SBT) Sec. 271 interLATA long distance bid. WorldCom said Jan. 8 decision by 8th U.S. Appeals Court, St. Louis, striking down PSC- approved interconnection agreements based on total element long run incremental costs (TELRIC) meant local exchange competitors had no legal access to SBT’s network. WorldCom contended it was impossible to have legal interconnection agreements based on illegal prices. It said most other CLECs in Mo. based their interconnection agreements on AT&T- SBT contract, so court’s action also voided those agreements, meaning SBT couldn’t be in compliance with Sec. 271 checklist. SBT said it would continue to honor rates company agreed to before its long distance application, but some CLECs and Mo. Office of Public Counsel said competitors were in position of relying on SBT’s oral promises, with nothing in writing that was enforceable. Court’s decision was on an SBT appeal of PSC arbitration decision in interconnection pricing dispute that upheld AT&T’s position favoring TELRIC-based prices. Mo. PSC is considering asking for clarification from court, but also could ask that decision be stayed pending appeal to U.S. Supreme Court.