Delayed launch of XM Satellite will have “no material financial impact” on firm, XM said, but delay came during week in which XM had hoped to create major splash for new satellite radio service. Sea Launch halted countdown of XM satellite Mon. when minor out-of-specification condition was detected. Condition was resolved within minutes, but short launch window didn’t allow adequate time to recycle rocket, officials said. Sea Launch rescheduled flight from Pacific Ocean platform for first of 2 geostationary satellites for Feb. 28, with launch of 2nd satellite pushed back to mid-April. Satellite analyst William Kidd of C.E. Unterberg Towbin said delay isn’t “ material” because company still had time to test system and meet its commercial launch objective. However, launch failure “could be disastrous” to XM in its effort to keep up with Sirius, one satellite analyst said.

Cox Communications has begun its first trial of broadband home security service in Las Vegas, using its high-speed cable lines and technology supplied by Security Broadband Corp. Cox said it hoped trial, which will test transmission of audio, video and alarm signals over cable plant, would lead to commercial product for residential and small-business cable subscribers. Security Broadband, backed by Adelphia, Charter, Comcast, Cox and other MSOs, said it aimed to introduce commercial service to consumers later this year.

Hearst-Argyle TV will take over management of WMUR-TV (Ch. 9, ABC) Manchester, N.H., under local management agreement, companies said. Deal is effective until Hearst-Argyle completes acquisition of station from Imes Communications.

Ameritech told Ind. Utility Regulatory Commission (IURC) it wouldn’t agree to agency’s request that Ameritech give bigger credits to customers that suffered lengthy service outages during last summer’s service quality crisis. Ameritech last fall voluntarily offered residential customers flat $12 credit and small-business customers flat $40 credit. But IURC last month said compensation was insufficient and strongly suggested company should pay up to $20 per outage day to residential customers and up to $40 per outage day to businesses, similar to outage compensation plan Ameritech agreed to in Wis. But in meeting Tues. with IURC Executive Dir. Michael Leppert, Ameritech Ind. Pres. George Fleetwood said his company wouldn’t be able to honor IURC’s request and further negotiation would be pointless. Ameritech spokesman said carrier believed best use of its resources was investing in network improvements, not issuing additional credits. He said different conditions in Wis. prompted Ameritech to issue larger outage credits there, but he didn’t elaborate. IURC’s Leppert said IURC up to now had hoped informal prodding of Ameritech through requests would have been enough to improve service and get adequate compensation for customers. He said next step would be formal investigation into Ameritech’s network operations and service management. But IURC has no legal power to fine utilities except as part of negotiated regulatory agreements. Pending proposal for renewal of Ameritech price cap regulation, which comes up for hearing Jan. 16, includes up to $30 million in annual penalties for service quality failures, $746 million in network investments and $180 million in rate cuts.

N.Y. PSC approved rate restructuring plan for Citizens Telecom that will make rates uniform in all of carrier’s service areas across state by 2005. New rate structure will replace hodgepodge of rates from company’s acquisitions of small telcos over last 20 years that led to situations where customers were charged substantially different rates for similar services without cost justification for difference. Plan adopted Tues. provides for phasing in new rates over 4 years, starting in 2002, with annual increases limited to $1 monthly for residential customers and $3 per line monthly for business customers. Customers receiving rate cuts under restructuring will see them implemented this month. New rates also will cover Citizens’ revenue losses from expiration in near future of long-term intercarrier compensation agreements with Verizon for extended local calling. Plan also eliminates Citizens’ rural zone charges to customers beyond base rate areas of its local exchanges and makes Citizens’ local calling areas similar in size to those of Verizon. Citizens is 4th largest incumbent in N.Y., with 307,000 lines in 126 exchanges scattered across state.

U.S. Appeals Court, D.C., ruling Tues. that rejected SBC’s advanced services subsidiary (CD Jan 10 p1) appeared to have raised more questions than it answered. Observers questioned Wed. whether decision might pressure Congress to revise Telecom Act to account for advanced services, how ruling would affect similar arrangement at Verizon and how it might play out under new Republican FCC. Court overturned trade-off FCC made with SBC: FCC allowed SBC to provide advanced services free of interconnection requirements if company formed separate affiliate to provide those services. In response to appeal filed by Assn. of Communications Enterprises (ASCENT), court ruled FCC didn’t have authority to forgo interconnection requirements of Sec. 251(c) just because SBC was providing advanced, rather than basic, services and using separate subsidiary. ASCENT represents competitive carriers, particularly those that resale ILEC service.

Responding to patent infringement suit filed against it by nCube Corp. earlier this week (CD Jan 9 p12), SeaChange International called charges “without merit” and said it would “vigorously defend its technology, products and customers.” SeaChange complained that it received “no notice” of nCube’s infringement claim before suit was filed. Interactive TV provider also said Del. jury had rejected similar nCube suit in late Sept., reaffirming validity of SeaChange’s MediaCluster technology patent.

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.

Bills are expected shortly in both chambers of N.Y. legislature that would impose statewide ban on use of handheld mobile phones by drivers of moving vehicles. State Rep. Felix Ortiz (D-Brooklyn) and state Sen. Michael Balboni (R-Nassau County), said they were drafting legislation for their respective chambers and planned to introduce parallel bills soon. They said their measures would supersede all local ordinances, such as one adopted late last year in Suffolk County and under consideration in New York City and 5 other counties. Draft statewide measure would impose $150 fine per violation. Drivers would be allowed to use hands-free phones. Two lawmakers said they expected majority- party support for mobile phone restriction in both chambers. Gov. George Pataki said Mon. he would be willing to consider car-phone curbs. In related matter, Rockland County Executive Scott Vanderhoef vetoed county ordinance that would have included 10-day jail sentence among penalties for drivers caught using handheld mobile phones. He said Mon. that jail term was excessive punishment and called on state legislature to take lead on issue.

PASADENA -- CBS TV Pres. Leslie Moonves said network had ordered new Survivor series 3 and 4 -- to follow Survivor 2, which begins its run immediately following Jan. 28 Super Bowl. Third in series will air in fall as hedge against possible strike by writers and actors. “That’s all part of the game plan,” along with extended new or expanded editions of news programming, he said at TV critics session here. Reality shows are “not union dependent,” Moonves said. “We hope the strike can be avoided, but we are ready… Obviously, everybody is going to be doing the same thing” in stockpiling reality programming in case of strike (CD Jan 9 p7). He joked that if Super Bowl were “a blowout, we may eliminate the 4th quarter and go right to Survivor… and hopefully in the near future we'll be announcing Survivor 19 and 20.” He refused to discuss prices being paid by advertisers for Survivor 2, but “obviously it’s a great deal more than they paid” for original series last summer.