--------------------------------------------------

Telecommunications Reports presents....

TR DAILY
June 4, 2001
--------------------------------------------------

PLEASE NOTE:  This electronic publication is copyrighted by
Telecommunications Reports International. Redistribution or
retransmission of any part of this electronic publication --
either internally or externally -- is strictly prohibited.
Violation will be cause for immediate termination of your
subscription and liability for damages.  You may print out one
hard copy for your personal use. If you are interested in having
this publication sent to colleagues at your company, additional
authorized recipients may be added to your subscription for a
fee.  Call Subscriber Services, at (800) 822-6338, or send an e-
mail to customerservice@tr.com for more details.  If you prefer
not to receive TR Daily, please reply to customerservice@tr.com.

--------------------------------------------------


Table Of Contents
Click here for the full issue:
http://www.tr.com/online/trd/2001/td060401/index.htm

HOLLINGS FAVORS SMALLER COMMERCE COMMITTEE;
INOUYE SET TO RETAKE COMMUNICATIONS GAVEL
http://www.tr.com/online/trd/2001/td060401/Td060401.htm

TECH COALITION BACKS BUSH's CALL
TO EXTEND CHINA's TRADE STATUS
http://www.tr.com/online/trd/2001/td060401/Td060401-01.htm

HEALTH RESEARCHERS TO SETTLE LAWSUIT
OVER USE OF PRIVATE CELLPHONE RECORDS
http://www.tr.com/online/trd/2001/td060401/Td060401-02.htm

CLEC ASKS FCC TO STAY RECIPROCAL
COMPENSATION ORDER
http://www.tr.com/online/trd/2001/td060401/Td060401-03.htm

NEWS IN BRIEF
http://www.tr.com/online/trd/2001/td060401/Td060401-04.htm


***************************************************************
HOLLINGS FAVORS SMALLER COMMERCE COMMITTEE;
INOUYE SET TO RETAKE COMMUNICATIONS GAVEL

It's still too early in the Senate transition game to tell which
issues -- telecom related or not -- will come to a head under a
Democratic-led Commerce, Science, and Transportation Committee.
But incoming Chairman Ernest F. Hollings (D., S.C.) already has
singled out one item for immediate attention -- downsizing the
Commerce Committee.

The panel gained two seats for a total of 22 at the outset of the
107th Congress.  Under a Senate "power-sharing" pact that went
into effect last January, all the committees were drawn up to
reflect the Senate's 50-50 split between Democrats and
Republicans (TR, Jan. 15).

But with Sen. James Jeffords's (R., Vt.) departure from the GOP
expected to take effect this week, Democrats are pushing a new
reorganization plan that would give them a one-seat advantage on
each committee.  For the Commerce Committee, Sen. Hollings
prefers trimming a Republican from the panel rather than adding a
Democrat, his spokesman said.

"He feels the Commerce Committee is starting to get too large and
plans to work with [incoming Majority Leader Thomas A.] Daschle
[D., S.D.] to come up with a final determination," the spokesman
told TR today.

It is too early to discuss specific Commerce Committee agenda
items for the remainder of the year, the Hollings spokesman said.
But before he begins pushing an agenda, Sen. Hollings will confer
with current Commerce Committee Chairman John McCain (R., Ariz.),
he added.

"While the committee's priorities have yet to be determined, the
style in which they work won't be changing," the spokesman said.
"Clearly, Sens. McCain and Hollings have a long-standing, working
relationship. . .and cover issues that transcend party lines.
They pride themselves on moving things out of that committee in
bipartisan fashion, and that isn't going to change," he added.

On the telecom front, Sen. Hollings is in line to become chairman
of the communications subcommittee, but he's not expected to
assume that post.  Instead, the subcommittee's gavel likely will
return to Sen. Daniel K. Inouye (Hawaii), who last held the top
spot there in 1994.

A Hollings-Inouye pairing would be good news for those who don't
want Congress to overhaul the Telecommunications Act of 1996.
Earlier this year, Sens. Inouye and Hollings were two of four
senators who called on FCC Chairman Michael K. Powell to maintain
the "strict adherence and strong enforcement" of the local
market-opening mandates spelled out in sections 251 and 271 of
the Act (TR, April 30).

Sen. Inouye also has pressed the FCC for quick action on
Northpoint Technologies Ltd.'s applications to operate in the Ku-
band (TR, May 28), and he was an original cosponsor to a bill, S
414, to set up a new telecom program to be administered by the
Commerce Department's National Telecommunications and Information
Administration (TR, March 5).

For current communications subcommittee Chairman Conrad Burns
(R., Mont.), the loss of the gavel shouldn't disrupt the rollout
of his "tech seven" agenda of telecom and Internet issues, his
spokeswoman said.  "It's still his top priority," she said.  Sen.
Burns "enjoys a good working relationship with [Sen.] Hollings
and feels they'll move the tech seven agenda."


***************************************************************
TECH COALITION BACKS BUSH's CALL
TO EXTEND CHINA's TRADE STATUS

A coalition of groups representing telecom equipment and high-
tech companies today said Congress should extend normal trade
relations (NTR) status with China for another year.  The U.S.
High-Tech Industry Coalition said it "strongly endorsed"
President Bush's call for such an extension.

Extending China's normal trade status would "protect current U.S.
high-tech investments and businesses in China, thus enhancing
opportunities for increased market access once China formally
joins the World Trade Organization," the coalition said.  China
is "moving toward completing" all of its accession procedures for
joining the WTO, it added.

The coalition includes the AeA (formerly the American Electronics
Association), the Computer & Communications Industry Association,
Information Technology Association of America, Information
Technology Industry Council, and the Telecommunications Industry
Association.


***************************************************************
HEALTH RESEARCHERS TO SETTLE LAWSUIT OVER USE OF PRIVATE
CELLPHONE RECORDS

The group that led a six-year, $27 million industry-funded effort
to study the health effects of mobile phones has agreed to settle
a class-action lawsuit.  The suit was filed in 1995 on behalf of
mobile phone users who claimed their privacy was invaded.  Their
phone records were reviewed without their permission as part of
the research project, the plaintiffs said.

Wireless Technology Research LLC has agreed to turn over the
remaining $1.4 million of a $2 million insurance policy that the
wireless industry purchased for it in the wake of the litigation.
As part of the settlement agreement, $250,000 of those funds will
be set aside to fund a voluntary, surveillance registry to assess
whether there is a link between mobile phone use and illnesses.

The registry will be run by WTR Chairman George L. Carlo, who had
a falling out with the wireless industry after he accused it of
failing to act on research that he said indicated a link between
mobile phone use and adverse health effects.  The settlement also
reserves $150,000 for future legal expenses of Mr. Carlo and WTR.

In addition, mobile phone subscribers included in the class would
get a 50% discount on a book Mr. Carlo co-authored last year,
"Cell Phones: Invisible Hazards in the Wireless Age."

Attorneys for the plaintiffs in "Jerald P. Busse et al. v.
Motorola, Inc. et al." (case no. 95 CH 10332) have asked the Cook
County, Ill., Circuit Court to hold a hearing Thursday on the
proposed settlement.  If the court approves the agreement, WTR
would be dropped from the lawsuit, but other defendants from the
wireless industry would remain.

An aide for Mr. Carlo told TR today he couldn't discuss the
settlement until it is finalized.  Michael F. Altschul, senior
vice president-policy and administration and general counsel for
the Cellular Telecommunications & Internet Association, which is
a defendant in the case, also declined to comment, saying
industry attorneys were reviewing the proposed settlement.


***************************************************************
CLEC ASKS FCC TO STAY RECIPROCAL COMPENSATION ORDER

Competitive local exchange carrier (CLEC) Core Communications,
Inc. (CoreTel) has asked the FCC to stay the effectiveness of a
recent order overhauling reciprocal compensation rules.  The new
rules are designed to phase out payments received by carriers for
connecting calls to Internet service providers (ISPs).  CoreTel
said the order could force it to abandon some of its markets.

CoreTel took issue with two provisions of the order in Common
Carrier dockets 96-98 and 99-68 (TR, April 23).  One is the ban
on carriers' receiving reciprocal compensation for terminating
calls to ISPs in any new markets entered after the adoption of
the order.  The other is the "growth cap" provision, which limits
annual increases in a carrier's reciprocal compensation revenue.

The order allows CLECs that already are operating in a particular
geographic area to continue receiving reciprocal compensation
revenues up to the limit set by the growth cap, while hampering
new CLECs, CoreTel noted.  That situation puts new CLECs entering
those markets at an "extreme competitive disadvantage," it said.

"The business that CoreTel will lose as a result of these new
rules and the competitive advantage they confer on established
CLECs is incalculable and irremediable at some later date,"
CoreTel said.  It will suffer "irreparable harm" if the
provisions aren't stayed pending judicial review, the company
added.


***************************************************************
NEWS IN BRIEF

New FCC Cable Bureau Chief Kenneth Ferree has announced that
senior legal advisor Clint Odom has left his staff and that
Thomas Horan, an attorney in the FCC consumer protection and
competition division, has succeeded Mr. Odom.  Mr. Odom was a
legal adviser to former FCC Chairman William E. Kennard before
joining the Cable Bureau....

President Bush has signed an executive order allowing the
Information Technology Advisory Committee to operate for another
two years, until June 1, 2003.  Former President Bill Clinton
established the panel by executive order in February 1997....

Robert A. Kaiser has been appointed president and chief executive
officer at MobileStar Network Corp., a wireless broadband
provider based in Richardson, Texas.  He was CEO at WorldCom
Broadband Solutions Group and before that was CEO and chief
financial officer at SkyTel, Inc....

John Windolph has been named senior vice president-business
development for the Cellular Telecommunications & Internet
Association.  Previously, he was executive VP and chief marketing
officer for Lowe Lintas & Partners, an advertising agency, and
VP-marketing communications for Iridium LLC.  He succeeds George
Shaginaw, who will become full-time president and chief executive
officer of CIBERNET, a CTIA subsidiary....

Tayo Ogundipe has been promoted to vice president-finance at
UbiquiTel, Inc.  He joined UbiquiTel in April 2000 as finance
director.  Previously, he was with the wireless division of
Southwestern Bell Corp. (now SBC Communications, Inc.) and
Comcast Cellular Communications.  UbiquiTel is a Sprint PCS
wireless affiliate based in Conshohocken, Penn....

Deborah Edlund has been named vice president-U.S. sales for MCK
Communications, Inc.  She was VP-distribution sales at Fujitsu
Business Communications Systems.  MCK also promoted Marc Flynn to
VP-international sales.  He has held sales posts at Bell Canada,
Memotec General Datacomm, and ADTRAN.  MCK said that Jeff
Dickerson, senior VP-worldwide sales, is leaving the company.
Mr. Dickerson's plans were not revealed.  MCK is a telecom
network equipment provider based in Needham, Mass....

Kent Larsen has joined the Washington law firm of Bennet & Bennet
PLLC as a senior communications consultant.  He has more than 17
years of experience as a telecom industry consultant....

The FCC has begun a new e-mail service to tell consumers about
developments at the agency, disseminate consumer information, and
invite comments on FCC proposals.  The service is operated by the
consumer education office of the FCC's Consumer Information
Bureau.  To subscribe, send an e-mail to subscribe@info.fcc.gov,
and write "subscribe fcc-consumer-info firstname lastname" in the
subject line or body of the message....

Nortel Networks Corp. will issue new stock options to many
employees whose options have been rendered worthless by the dip
in Nortel's stock price, the company said today.  As of May 31,
about 333 million options to buy Nortel shares were outstanding.
Around a third of those will be eligible for the exchange
program, Nortel said.  "This is an extraordinary step that is
essential so we may continue to attract, retain, and reward our
talent in a highly competitive labor market," said John Roth,
Nortel's president and chief executive officer....

An alliance of information and communications technology
companies is launching a global initiative to improve the
environment and support sustainable development by saving energy,
minimizing waste, and bridging the digital divide, the
International Telecommunication Union (ITU) said today.  The
Global e-Sustainability Initiative (GeSI) is supported by the ITU
and the United Nations Environment Program.  It will help conduct
research over the next two years on how communications companies
can be more environmentally and socially responsible.  Founding
members include AT&T Corp., British Telecommunications plc, Cable
& Wireless plc, Deutsche Telekom AG, LM Ericsson AB, Lucent
Technologies, Inc., Telenor AS, and the European
Telecommunications Network Operators Association.  GeSI will be
launched June 5 on World Environment Day in Turin, Italy.  For
more information, go to http://www.gesi.org....

The number of CDMA (code-division multiple-access) subscribers
grew to 90 million in March, a 58% jump over the previous year,
according to the CDMA Development Group.  The Asia Pacific region
remained the largest CDMA market, with nearly 40 million sub-
scribers, while North America was second with 33.8 million
subscribers.  Latin America saw the fastest growth in CDMA usage,
144%, bringing its subscribership to 15.9 million.


********************************************************
TR DAILY Copyright 2001 Telecommunications Reports International,
Inc., (ISSN 1082-9350) is transmitted weekdays, except for
holidays.  Visit us on the World Wide Web at http://www.tr.com.
Published by the Business & Finance Group of CCH INCORPORATED.

Associate Editor: Tom Leithauser
Associate Editor: Ryan Oremland
Associate Editor: Ed Rovetto
Editor in Chief: Victoria A. Mason
Publisher: Stephen P. Munro
1333 H Street, NW, 1st Floor-East Tower, Washington, DC 20005
Editorial Information: Telephone:  (202) 312-6060
Fax:  (202) 842-3047
Email: tleithauser@tr.com

Customer Service:      Telephone:  (202) 312-6050
(877) 874-8737
Fax:  (202) 842-3023
Email: customerservice@tr.com

Federal copyright law prohibits duplication or reproduction in
any form, including electronic, without permission of the
publisher.: