Paxson announced series of TV station transactions, including: (1) It agreed to sell KBPX (Ch. 13) Flagstaff and WPXS (Ch. 13) Mt. Vernon, Ill., to Equity Bcstg., terms not disclosed. Stations will remain Pax affiliates. It said sales were move toward complying with FCC ownership cap. Deals mean Paxson stations will reach 33.1% of U.S. households, it said. (2) Pax TV signed joint sales agreements with Scripps-owned NBC stations in Kansas City (KSHB-TV, Ch. 13), Palm Beach (WPTV, Ch. 5), Tulsa (KJRH, Ch. 2). NBC stations will provide sales and marketing infrastructure for Pax stations. (3) Paxson signed joint sales agreement with Dispatch Bcst. station WTHR-TV (Ch. 13) Indianapolis (NBC). WTHR-TV will provide sales and marketing for WIPX-TV (Ch. 63) Bloomington, Ind.

BellSouth told FCC it was opposed to request by Dept. of Justice and FBI for additional security requirements under Communications Assistance for Law Enforcement Act (CALEA). DoJ/FBI asked agency in Nov. to require carriers to: (1) Submit name, phone number, e-mail address and other contact information for person designated as point of contact for CALEA issue. (2) Notify FCC in writing or by e-mail of any change in such contact information. BellSouth said requirements were “unnecessary, burdensome and inconsistent with the Commission’s minimal set of guidelines for compliance with CALEA’s systems security and integrity provisions.”

Helgi Walker, aide to FCC Comr. Furchtgott-Roth, will move to White House as assoc. White House counsel and special asst., his office said. Walker, who specialized in mass media and cable issues, will be replaced by Ben Golant of FCC Cable Bureau.

New cable industry study found that 79% of digital cable and 55% of analog cable subscribers were “very or somewhat receptive” to interactive TV (ITV) features. CTAM study, conducted through online interviews with 525 cable customers in 6 major markets, showed video-on-demand (VoD), personal video recorders (PVRs) and local news and information to be most attractive of core interactive features. Customers expressed most willingness to buy VoD services, with 71% of digital cable and 67% of analog cable subscribers saying they would do so. Study also found that cable customers most receptive to ITV features already were tinkering with more rudimentary forms of interactivity, colocating PCs in same room as TV sets and using both devices simultaneously. Most receptive consumers also tended to be 18-34 years old, pay-cable subscribers, frequent pay-per-view users and videotape renters, high-speed data subscribers and owners of big-screen TVs and DVD players.

FCC, NTIA and Industry Canada reached agreement on spectrum- sharing requirements along U.S.-Canada border for U.S. Local Multipoint Distribution Service (LMDS) and Canadian Local Multipoint Communications Service (LMCS). Interim arrangement also covers certain services in 27 GHz, 29 GHz and 31 GHz. FCC said arrangement defined coordination requirements to help prevent cross-border interference. It said pact would help promote services such as high-speed Internet access and high-speed data. Arrangement calls for licensees of systems in 27 GHz to coordinate services on either side of border, with carriers encouraged to develop their own sharing agreements. If licensees work out their own sharing arrangement, FCC said that agreement will be followed rather than coordination process outlined in U.S.-Canada agreement. Without such sharing arrangements, coordination will be based on different power flux density (pfd) levels calculated at service area boundaries. In 29 and 31 GHz bands, coordination isn’t required if station generates pfd signal less than or equal to -105 dBW/m2 in any 1 MHz band at border. Above that level, coordination is necessary before deployment. In U.S., 27.35-27.5 GHz is occupied by federal govt. fixed and mobile systems and intersatellite service. That means NTIA and Industry Canada will represent licensees in arranging for coordination in that band segment, FCC said. “This arrangement gives licensees the flexibility to develop their own border-sharing agreements and will encourage expanded development of the 27, 29 and 31 GHz bands,” FCC International Bureau Chief Donald Abelson said. Arrangement includes list of service areas that may need to coordinate with each other. In Canada, 27 GHz band is designated for LMCS, but nation hasn’t yet designated radio service for 29 and 31 GHz. In U.S., 29 GHz is allocated for LMDS and in Canada for fixed and mobile service. Arrangement doesn’t apply to mobile services in those bands, although footnote to arrangement said it might be amended if Canada designated 29 and 31 GHz for fixed service. FCC said arrangement was part of its effort to negotiate agreements with Canada and Mexico to promote efficient spectrum use in border regions -- www.fcc.gov/ib/pnd/agree.

Veil Interactive Technologies said it received patent for inserting data into visible portion of broadcast signal. It said technology would allow broadcast signal to become “universal platform” to allow interacting with TV through broadcast signal. Technology uses full-video-image data stream, rather than just vertical blanking interval, allowing up to 6 Mbps to be transmitted, Veil said.

As FCC continued to weigh AOL’s pending purchase of Time Warner (TW) Wed., consumer groups and smaller ISPs pressed Commission to impose instant messaging (IM) service interoperability and tighter cable open access conditions on merged company. Moves came as one-year anniversary of AOL-TW deal announcement passed without expected merger approval by Commission, which has been grappling with possible additional conditions since FTC okayed deal Dec. 14. While Republican Comrs. Powell and Furchtgott-Roth reportedly have voted to approve merger without additional conditions, outgoing Chmn. Kennard and Democrat Comrs. Ness and Tristani still were trying to craft compromise on IM issue that would set some requirements. In ex parte presentations earlier this week, Consumers Union and Media Access Project urged agency staffers to back interoperability standards for IM services. They argued that reported Cable Bureau staff proposal to force AOL-TW to open its high-speed cable lines to 2nd, unaffiliated IM service was “of limited utility.” On open access issue, consumer groups called on FCC to mandate that AOL-TW provide access to smaller local and regional ISPs as well as such larger national ones as EarthLink. They said proposed requirement would advance “Commission’s public interest objectives of diversity and localism.” Group of smaller ISPs submitted proposed merger condition to FCC Tues. that would require AOL-TW to “enter into a contract with at least one local and one regional ISP in each franchise area in which cable modem service is made available.” ISP group also called on Commission to make AOL-TW open its cable lines to business-oriented services provided by independent ISPs.

Salt Lake Organizing Committee will be broadcast frequency coordinator for 2002 Olympic Games and Paralympic Games in Salt Lake City, FCC said in notice Wed. Group will coordinate frequency use in 150 km radius from city during games, FCC said.

NASA’s Goddard Space Flight Center gave Swales Aerospace 5- year contract worth potential $350 million to provide engineering service for Goddard’s Applied Engineering, Technology, Suborbital and Special Orbital Projects Directorates, including studying, designing, developing, testing, verifying and operating spacecraft and ground system hardware and software. Swales also will coordinate work of Orbital Sciences, Jackson & Tull, Hammers and Curtis Management in deal that consolidates services of 2 prior engineering service contracts.

Promotions at Time Warner: John Fogarty to vp, Gary Matz to vp, Trish McCausland to senior counsel… Sallie Fraenkel advanced to senior vp-mktg. & operations, program enterprises and distribution, Showtime… Jonathan Shair, ex-Bravo/Independent Film Channel, appointed vp-program scheduling and planning, Starz Encore Group… Richard Sulpizio, Qualcomm pres.-COO, elected to board… Ralph Haiek promoted to COO, Claxson Interactive Group… Michael Kennedy advanced to corporate vp and dir.-global govt. relations, Motorola… Berry Smith, senior vp, Schurz Communications, retires Jan. 31… Clifford Rees promoted to pres.- N. America, World Access… Changes at Broadbeam: Sri Sridharan, ex-ServiceNet, named pres.-COO; William Lenahan, CEO, KMC Telecom, joins board… Hewlett Packard Chmn. Carly Fiorina appointed to Cisco Systems board… Geoffrey Crowley promoted to regional vp-sales for the north, Net2000 Communications… Michael Kuehn, ex-Desert Island Resource Group, named vp-quality assurance & process development, Pathnet… Gordon McKenna, chmn., American Teleservices Assn., resigns.