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

Telecommunications Reports presents....

                                  TR DAILY
                                  Nov. 21, 2001
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For a Web version of today's TR Daily, go to 
http://www.tr.com/online/trd/2001/td112101/index.htm
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***TRDaily will not publish again until Nov. 26 in observance of
the Thanksgiving holiday.

***See Monday's TR for an On-the-Record interview with European
Commissioner Erkki Liikanen.  He discusses the direction of
telecom policy in Europe.



Table Of Contents


TELECOM REGULATION
Bells Battle For 271 Approval
Nextel Proposes Public Safety Spectrum Swap
FCC Clarifies Pay Phone Rules
Pay Phone Billing Dispute
Cost Allocation Manual Comments Sought
Black Crow Closer To Winning Licenses
International Bureau Forum

LEGISLATION
Lawmakers Ask Verizon About `Rational Regulation' Plan

TELECOM BUSINESS 
KPN Dodges "Junk" Designation
AT&T-TeleCorp Deal Gets Antitrust OK
Orius Corp Posts $120.5M In Quarterly Sales
Portal Software Revenues Dip To $31.7M
C&D Technologies Revenues Drop
Arguss OKs Takeover Defenses
Leap To Cut Options Prices
QUALCOMM-Eutelsat Partnership
Alcatel Gets $44M Costa Rica Contract


CAPITAL MARKETS 
TRDaily Stock Index Gains 0.4%
Telecom Weekly Funding Roundup
France Telecom Convertible Bond Sale
AT&T Closes On $10B Bond Sale
Shaw Files $800M Debt Shelf
Anadigics Seals $75M Note Sale

PEOPLE ON THE MOVE 
Winstar Execs Resign, Eye Buying Company
Metromedia Fiber CEO Resigns
New President For Space Systems/Loral
Acterna General Manager
New Manager At Telia


************************************************************
TELECOM REGULATION
************************************************************
BELLS CONTINUE SEEKING InterLATA APPROVALS;
A REVIEW OF WHERE THEY STAND IN VARIOUS STATES

The FCC can expect a handful of applications by year-end from
Bell companies eager to provide in-region interLATA (local access
and transport area) services.  Under section 271 of the Telecom-
munications Act of 1996, before a Bell company can offer in-
region interLATA services, it must show that it has complied with
a 14-point competitive checklist of local market?opening man-
dates.

Section 271 stipulates that the FCC has the final say on whether
a Bell company is allowed to offer in-region interLATA services. 
The FCC, however, must consult with the U.S. Department of
Justice and the relevant state commissions before reaching a
decision.  Without state commission backing, receiving FCC
approval is thought to be virtually impossible.

With the Nov. 15 nod of approval from the Rhode Island Public
Utilities Commission, Verizon Rhode Island, Inc.'s interLATA
application filing with the FCC is imminent, a Verizon spokesper-
son said.  Verizon Rhode Island's sister telcos in New Hampshire,
Maine, Vermont, and New Jersey are waiting for their respective
state regulator to complete reviews of the telcos' compliance
with section 271.

A Verizon spokesperson said the company expected the New Jersey
Board of Public Utilities to reach a decision sometime next
month; Verizon will file with the FCC soon thereafter.  The
spokesperson cited competitors' and regulators' concerns about
the pricing of interconnection and unbundled network elements
(UNEs) as a frequent obstacle in getting state endorsement of
Verizon's interLATA bids.

"In New Jersey, for example, the consumer advocate has talked
about the [low] number of lines [served] by competitors. . .and
she blames pricing for this," the spokesperson said.  "But local
rates are so low [in New Jersey] that it's difficult for competi-
tors" to enter the market.  Verizon already has received FCC
approval to provide interLATA services in New York, Connecticut,
Massachusetts, and Pennsylvania.

BellSouth Telecommunications, Inc., is awaiting the FCC's deci-
sion on whether or not it should be allowed to offer interLATA
services in Georgia and Louisiana.  The Commission's decision is
expected Dec. 31.  BellSouth received state commission support
for its interLATA service bid in Mississippi Oct. 4 and the South
Carolina commission's backing Nov. 6.  A company spokesperson
said BellSouth might submit the two states' applications together
when it files at the FCC.

State commission hearings on BellSouth's interLATA service
applications have ended in North Carolina, Florida, and Kentucky,
but the commissions have yet to issue decisions.  The Alabama
Public Service Commission has scheduled hearings Nov. 27 and 28
on BellSouth's third-party OSS (operation support system) test-
ing.  The Tennessee Regulatory Authority has yet to formally
schedule hearings, but BellSouth's spokesperson said OSS testing
was expected to begin in that state by Jan. 14.

Referring to obstacles BellSouth faces in regulatory reviews of
its competitive checklist compliance, the company spokesperson
said there was "constant anecdotal complaining by our competi-
tors.  [It] takes an awful lot of time to go through and figure
out what the real problem is."  He continued, "The law does not
require perfection, but our competitors would like to see perfec-
tion."

With the FCC's Nov. 16 approval of SBC Communications, Inc.'s
Arkansas-Missouri application, the company has received authority
to provide interLATA services throughout its five-state South-
western Bell service territory.  The FCC approved SBC's Texas
application in June of 2000 and its joint Kansas-Oklahoma appli-
cation last January.  Due to its acquisition of Southern New
England Telephone Co., SBC also offers interLATA services in
Connecticut but did not need approval under section 271 of the
Act to do so.

SBC submitted an updated interLATA filing for its Pacific Bell
subsidiary to the California Public Utilities Commission in May. 
According to a company spokesperson, SBC thought it would be
"helpful" to do so considering a new PUC chairman came on board
earlier this year.  An administrative law judge is still review-
ing the California application, but SBC expects a decision by the
end of this month, the spokesperson said.  SBC anticipates a
decision by the full commission by year-end.

A review of section 271 compliance by SBC's Nevada Bell subsid-
iary is pending at the Nevada Public Utilities Commission.  A
company spokesperson said SBC was not aware of any outstanding
issues with regard to the application, but the Nevada commission
has signaled its interest in the decision of the California
commission.  Therefore, the state's respective decisions will
likely be "closely in tandem," the spokesperson said.

In SBC's five-state Ameritech Corp. territory, OSS testing is
under way.  SBC predicts the various state commissions in that
region will reach decisions by the first quarter of next year. 
At that point, SBC will submit its applications to the FCC.

Instead of following a state-by-state approach to OSS testing,
Qwest Corp. has taken a multistate approach in its attempt to
obtain state backing for its interLATA service aspirations.  Of
the 14 states in Qwest's service territory, 13 are taking part in
a regionwide, collaborative process to conduct OSS testing under
the auspices of the Regional Oversight Committee (ROC).  Arizona
chose not to participate in the multistate proceedings; it is
conducting its own review of Qwest's performance.

The ROC's OSS testing process is about 80% complete and should be
finished by mid- to late December, Qwest said.  The company
expects decisions from the first batch of state commissions soon,
a spokesman said.  He noted that Arizona, Colorado, and Iowa were
"moving along well" in their proceedings.  The Iowa Utilities
Board found Nov. 13 that Qwest had satisfied the emerging servic-
es portion of the checklist, bringing the total number of ap-
proved checklist items to 11.

On the other hand, the Washington Utilities and Transportation
Commission on Nov. 19 issued an initial order finding that Qwest
had failed to comply with checklist item four (unbundled local
loops) and with the emerging services requirements and the public
interest.

The initial order said Qwest was obligated to build new facili-
ties when existing facilities were fully utilized, and it must
provision facilities for competitive local exchange carriers
(CLECs) on the same terms as it would for its retail customers. 
A WUTC staff member acknowledged that this position was different
from that of other state regulators within Qwest's territory.

Qwest has not yet filed any section 271 applications with the FCC
but expects to do so by year-end or early 2002.  "It's just not
an easy process," the spokesman said.  "It just takes time." --
Margaret Boles, mboles@tr.com

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

NEXTEL PROPOSES SPECTRUM SWAP
WITH PUBLIC SAFETY USERS

Nextel Communications, Inc., proposed swapping 16 megahertz of
spectrum in the 700 MHz, 800 MHz, and 900 MHz bands with public
safety users to "mitigat[e] interference to public safety commu-
nications from commercial services" in the 800 MHz band.  The
proposed swap would give public safety agencies access to a 20
MHz block of contiguous spectrum in the lower 800 MHz band,
according to Nextel.

"This spectrum would be adjacent to the 700 MHz frequency band
already allocated by the FCC for future public safety usage,"
Nextel said in a statement announcing its plan.  The proposed
swap was laid out in a white paper filed with the FCC today.

The proposed swap would give Nextel 6 MHz of spectrum in the
upper 800 MHz band, and 10 MHz in the 2.1 gigahertz band, the
company said.  In return, public safety interests would receive
from Nextel 4 MHz in the 700 MHz band, 8 MHz of SMR (specialized
mobile radio) spectrum in the lower non-contiguous channels of
the 800 MHz band, and 4 MHz in the 900 MHz band.

Nextel has been at odds with public safety agencies over com-
plaints that Nextel's 800 MHz SMR operations cause interference
to their communications systems (TR, Sept. 24).  Public safety
agencies had asked the FCC to impose conditions on Nextel's
recent acquisition of licenses from Pacific Wireless Technolo-
gies, Inc., to protect their systems from interference.  The FCC
approved the transfer but without the conditions (TR, Nov. 19,
notes). -- Ed Rovetto, erovetto@tr.com

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

FCC CLARIFIES PAY PHONE COMPENSATION RULES

The FCC today issued an order clarifying portions of its rules
governing how pay phone service providers are compensated for
completed, coinless calls made from the phones, although the Com-
mission declined requests to modify the basic compensation scheme
for such calls.

In an earlier "second order on reconsideration," the FCC had
modified its per-call compensation rules to address situations in
which the payphone provider must obtain payment when a switch-
based reseller is involved in the call.  Those rules provided
that the first interexchange carrier to which a payphone service
provider routes a call must compensate the provider, track or
arrange for tracking of all compensable calls, and send call
completion data to the payphone provider.

The FCC today rejected petitions asking it to modify that regime. 
It reaffirmed that for the purposes of payphone compensation,
only calls that are answered by the called party are considered
completed and, therefore, are compensable.

The FCC also clarified that it "supports the preservation and
establishment of direct relationships and agreements" between
payphone service providers and switch-based resellers for track-
ing and payment of payphone compensation.  It added that the
"liability of the first facilities-based IXC is limited to the
extent" that switch-based resellers enter into such direct
relationships.  The FCC added that it did not, by revisiting the
payphone rules, "intend to nullify any current or future contrac-
tual relationships." -- Brian Hammond, bhammond@tr.com

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

PAY PHONE BILLING DISPUTE

A federal district judge sent a case back to a state small-claims
court involving a pay phone operator that claimed it was under-
paid by a long distance provider for dial-around phone calls. 
Dial-around phone calls are made by dialing a toll-free number to
avoid depositing coins.  Section 276 of the 1934 Communications
Act, as amended, requires long distance carriers to compensate
pay phone providers for dial-around calls.

Precision Pay Phones filed a complaint in the small claims
division of the San Francisco superior court alleging that it was
owed $4,868 by Global Crossing Telecommunications, Inc.  Global
Crossing asked that the case be moved to the U.S. District Court
for the Northern District of California.  It claimed the case
would require interpretation of section 276 and that Precision
was seeking relief under the Act, which requires damage claims to
be brought to federal court.

Precision contended that it was only a billing dispute and that
the case didn't require a construction of federal law.  District
Judge William Alsup ruled in "Precision Pay Phones v. Global
Crossing Telecommunications, Inc." (case C 01-02901) ruled that
the case could be heard in state court.

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

COST ALLOCATION MANUAL COMMENTS SOUGHT--
The FCC's Common Carrier Bureau is seeking comments on a consoli-
dated cost allocation manual (CAM) filed by Verizon Communica-
tions East Operating Companies and Verizon Communications West
Operating Companies.  The CAM becomes effective Jan. 1, 2002. 
Comments in Accounting and Safeguards Division (ASD) file 01-45
are due Dec. 21.  Replies are due Jan. 7, 2002.

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

BLACK CROW CLOSER TO OBTAINING LICENSES--
The FCC's Wireless Telecommunications Bureau said it was ready to
grant five "C" block PCS (personal communications service)
licenses to Black Crow Wireless L.P. upon full payment of its
winning bids by Dec. 6.  Black Crow won two licenses for Salis-
bury, Md., and single licenses for Cleveland, Tenn.; Enid, Okla.;
and Sedalia, Mo.

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

INTERNATIONAL BUREAU FORUM--
The FCC's International Bureau will hold a roundtable discussion
Dec. 5 from 1 p.m. until 3 p.m. at FCC headquarters in Washington
to identify and implement future enhancements to its electronic
International Bureau Filing System (IBFS).  The bureau will seek
preliminary input from interested parties on how to improve
electronic filing and other services available through IBFS. 
Interested parties should register by Nov. 28.  For more informa-
tion, call 202/418-1631 or e-mail IBFSPT25@fcc.gov. 


************************************************************
LEGISLATION
************************************************************
LAWMAKERS SEEK MORE INFORMATION ON
VERIZON's `RATIONAL REGULATION' PLAN

Two members of the House telecommunications and the Internet
subcommittee who voted against the Internet Freedom and Broadband
Deployment Act, HR 1542, are asking a top Verizon Communications,
Inc., policy advocate for more specifics about the "rational
regulation" broadband policy model that he began floating back in
August (TR, Aug. 27).

Writing Nov. 20 to Thomas J. Tauke, senior vice president-public
policy and external affairs for Verizon, Reps. Bill Luther (D.,
Minn.) and Heather Wilson (R., N.M.) suggested that Mr. Tauke's
proposal could serve as a starting point for negotiations between
the main parties involved in the fight over HR 1542, the broad-
band deregulation bill championed by Reps. W.J. (Billy) Tauzin
(R., La.) and John Dingell (D., Mich).  But first, they said,
more details are needed about key provisions of the plan.

"As members. . .with an acute interest in the `Tauzin-Dingell'
broadband bill and its impact on CLEC [competitive local exchange
carrier] access to unbundled network elements, we were encouraged
by your proposals to maintain network access for competitors,"
they wrote.  "Because we remain hopeful that compromise between
all interested parties is possible, we hope you can assist us in
understanding what kind of access Verizon is contemplating."

Their letter comes in advance of a possible floor vote next month
on HR 1542, which would relieve ILECs of certain unbundling
requirements for advanced services.  During the House Energy and
Commerce Committee's vote on the bill, Reps. Luther and Wilson
came within one vote of adding language to the measure that would
have preserved the FCC's mandates on "line sharing," which allows
CLECs to offer high-speed Internet services over the
high-frequency portion of a loop while the incumbent continues
offering voice services over the low-frequency portion.

The current version of the bill allows for line sharing -- but
only over all-copper lines.  Where fiber is installed between a
central office and an end user, the bill gives CLECs access to
the incumbents' networks only as far as the remote terminal.  Mr.
Tauke's rational regulation proposal would give CLECs some access
at the remote terminal, but it's still not clear how much, say
Reps. Luther and Wilson.  They also want to know more about Mr.
Tauke's proposal to allow CLECs to purchase fiber bandwidth from
the Bells at "commercially reasonable rates."

"How would such rates be calculated?" the lawmakers asked in
their letter to Verizon.  "When you say that a competitor would
be allowed to interconnect at the remote terminal, does this mean
a CLEC should be allowed to install a dedicated line card or
extend its own line into the remote terminal?"

Reps. Luther and Wilson also asked for a "clarification on what
`buying bandwidth' and `commercially reasonable rates' entails,"
and whether the plan would permit a CLEC to "lease Verizon's
facilities in order to provide customers with high-speed data
services.  If so, would a competitor be allowed to do so on an
unbundled basis?" they asked. -- Ryan Oremland, roremland@tr.com


************************************************************
TELECOM BUSINESS 
************************************************************
STOCK SALE WILL BOLSTER KPN's CREDIT RATING,
LEAVING IT ONE NOTCH ABOVE `JUNK' STATUS

KPN NV has prevented its bond ratings from falling to "junk"
status by arranging to raise 5 billion euros ($4.4 billion)
through a stock sale.  The Dutch carrier will use the proceeds to
pay down debt, reducing its financial obligations enough to
satisfy two credit rating agencies, Moody's Investors Service and
Standard & Poor's.  Both agencies concluded their reviews of KPN
and declared that the company's long-term ratings would stick at
the lowest possible "investment-grade" rating.

KPN's planned stock sale "has materially reduced KPN's financial
risk, and this has enabled the company to maintain its invest-
ment-grade ratings," S&P said.  Both agencies, however, said
their ratings depended on KPN continuing its effort to sell
"noncore" assets to raise funds for debt reduction (TRDaily,
Sept. 7 and 10).

The stock sale will be conducted as a rights issue that will give
existing shareholders the right to buy more KPN shares.  Any
shares not purchased by current shareholders will be offered to
new investors.  The Dutch government has agreed to buy 34.7% of
the shares, while investment banks will sell the remainder.

KPN today posted operating revenues of 3.2 billion euros ($2.8
million) for the third quarter ending Sept. 30.  That's a 37.1%
decrease from the year-ago figure.  EBITDA (earnings before
interest, taxes, depreciation, and amortization) decreased to 987
million euros ($865.5 million) from 3.1 billion euros ($2.7
million) in the third quarter of 2000.

While the year-over-year comparisons look dismal, KPN is expected
to benefit as the telecom shakeout eliminates some of its compet-
itors.  "KPN has effectively halted market-share erosion in its
fixed-line operations for the time being and tariff pressure has
eased due to a weakening of the competitive environment," Moody's
said.

On the wireless side, however, KPN is likely to see increased
competition, particularly in Germany where it offers service
through E-Plus Mobilfunk GmbH.  Germany has four facilities-based
wireless service providers and is due to get two more, S&P noted. 
"A six-player German mobile market will not be sustainable," the
agency said.

But before consolidation occurs and the market reaches equilibri-
um, the two new entrants "are likely to destabilize the market by
targeting customers of the existing operators" with cheaper rates
and handsets, S&P said.  The smallest players, E-Plus and mmO2
plc, will be the most vulnerable, the agency added. -- Tom
Leithauser, tleithauser@tr.com

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

AT&T WIRELESS/TeleCorp DEAL GETS ANTITRUST OK--
TeleCorp PCS announced that its proposed acquisition by AT&T
Wireless received clearance from federal antitrust regulators
under the Hart-Scott-Rodino Antitrust Improvements Act.  AT&T
Wireless, owner of a 23% equity stake in TeleCorp PCS, agreed
last month to acquire the remainder for about $2.2 billion. 

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

ORIUS CORP. 3rd QTR REVENUES DOWN, TO $120.5M--
Orius Corp., which provides technical and network services to the
telecom and broadband sectors, said third quarter revenues fell
to $120.5 million from $197.2 million in the comparable period
last year.  "These declines were primarily due to a continued
slowdown in project-related work in external plant construction
and reduced demand for central office services," Orius said.  The
company's bottom line swung to a $15.3 million net loss in the
most recent period from a profit of $3.6 million last year.  "The
third quarter of 2001 continued a trend that we have seen all
year of reduced capital investment by our principal customers,"
commented Ronald Blake, chief executive officer. 

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

PORTAL SOFTWARE 3rd QTR REVS DOWN, TO $31.7M--
Portal Software, Inc., a provider of billing and other software
to communications providers, posted third quarter revenues of
$31.7 million, down substantially from the $72.0 million of
revenues booked in the year-ago quarter.  After restructuring and
other costs, Portal reported a net loss of $50.0 million for the
most recent quarter versus a profit of $6.9 million for the
comparable quarter last year.  For the fourth quarter, the
company expects revenues to be flat with third quarter totals and
a loss of about $0.10 per share. "Although capital expenditures
for communication and content providers remained weak worldwide,
Portal continued to expand its global customer base and extend
its product platform," said John Little, chief executive officer.

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

C&D TECHNOLOGIES 3rd QTR REVS DOWN, TO $102.5M--
C&D Technologies, Inc., a supplier of power storage and conver-
sion equipment to the telecom and industrial sectors, reported
$102.5 million of revenue for the third quarter, down from $161.9
million in the comparable period last year.  Net income for the
most recent quarter fell to $1.8 million from $14.7 million in
the comparable period last year.  Particularly hard hit were
sales comparisons in C&D's Powercom segment, where revenue
dropped to $51.0 million from $68.5 million a year ago "primarily
due to lower telecommunications sales for reserve power systems,"
the company said. 

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

ARGUSS COMM. OKs TAKEOVER DEFENSE--
Arguss Communications, a provider of engineering and construction
services to the telecom sector, said its board had approved a
"poison pill" shareholder rights plan commonly used by public
companies as a defense against unwanted takeover attempts.  "We
believe that this plan will insure that any bid for the company
is fair, noncoercive and appropriately valued," the company said.

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

LEAP WIRELESS OFFERS TO CUT OPTION PRICES--
Leap Wireless International, Inc., said it would offer employees
holding high-priced common stock purchase options an opportunity
to trade them in for new options with an exercise price to be
determined roughly six months from now.  The offer is good for
holders of outstanding options to buy about 1.3 million shares at
exercise prices exceeding $35 per share.  Leap common stock now
trades at about $17.50 per share and last traded above $35 in May
2001. 


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

QUALCOMM-EUTELSAT PARTNERSHIP--
QUALCOMM, Inc.'s European subsidiary, QUALCOMM Wireless Business
Solutions Europe, and satellite provider Eutelsat S.A. have
signed a five-year agreement to provide the EutelTRACS mobile
communications and management system to European fleet managers,
QUALCOMM said.  EutelTRACS is the European version of QUALCOMM's
OmniTRACS, a satellite-based mobile communications and tracking
system that provides real-time messaging and position reporting
between fleets and their operations centers.

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

ALCATEL GETS $44M COSTA RICA CONTRACT--
Alcatel S.A. won a contract from ICE, the incumbent telecom
operator in Costa Rica, for expansion and upgrade of the
carrier's fixed-line telecom network.  The value of the contract
is $44 million, Alcatel said.


************************************************************
CAPITAL MARKETS 
************************************************************
TELECOMS TAKE BACK LOSSES;
TRDaily INDEX GAINS 0.4%

Big telecom stocks bounced back in thinner preholiday trading on
Wednesday, taking back some of their outsized losses sustained in
Tuesday's equities sell-off. 

The TRDaily Telecom Index today gained 4.5 points, or 0.4%, to
close at 1,093.  The index of 90 larger-cap telecom service
provider and equipment supplier stocks had taken a beating on
Tuesday, when it lost 3.6% of its value as investors pocketed
profits from the sector's strong stock market performance over
the past few weeks.  

Wednesday's modest gains seen by telecom issues did not carry
over into broader market averages.  The Dow Jones Industrial
Average fell 66.8 points, or 0.68%, to finish at 9,834.  The S&P
500 average lost 5.6 points, or 0.49%, to close at 1,137.  The
Nasdaq composite average shed 5.5 points, or about 0.3%, to end
the day at 1,874.  Broader market sentiment on Wednesday was
marked by understaffed trading desks, a mildly encouraging weekly
unemployment report from the U.S. Labor Department, and the
slumping share price of Microsoft Corp. 

Several telecom-related tech stocks bounced back nicely after
Tuesday's selling pressure.  Broadcom Corp. common stock rose
$1.88 per share to $45.95, while RF Micro Devices shares added
$0.86 per share to finish at $25.91.  France Telecom gained back
$0.58 per share to close at $40.53 after losing more than $4 per
share on Tuesday. 

Techs and service providers equally populated the losing side of
the sector.  Amdocs Ltd., despite announcing a new contract with
Bell Canada, lost $1.22 per share to close at $32.08.  CenturyTel
gave up $0.71 per share to finish at $33.69, while U.S. Cellular
shed $0.69 per share to end the day at $44.98. -- John Curran,
jcurran@tr.com

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

TELECOM WEEKLY FUNDING ROUNDUP

Following are highlights from reported telecom sector corporate
financing deals and emerging situations during the period Nov.
16-20, with lead companies listed in alphabetical order:

AT&T Corp. plans to sell its 33.9% equity stake in Rainbow Media
Holdings through a public offering and other arrangements.  The
Rainbow shares are valued at about $525 million.  Proceeds are
slated to repay debt.  

International FiberCom, Inc., disclosed covenant violations under
its bank credit facility and said lenders are demanding full
repayment on about $99 million drawn down under the facility. 
International FiberCom said it was working with the banks to cure
the violations and to find an alternative source of funding. 

Net2000 Communications, Inc., filed for bankruptcy protection on
Nov. 16 after violating covenants under its credit facility and
receiving notice that lenders wouldn't provide further funding. 

Optovation, an Ottawa-based developer of advanced fiber-optic
modules, completed a $20 million venture financing round with
funders including Altamira Investment Services, Inc., and Newbury
Ventures. 

PhoneTel Technologies, Inc., defaulted on its credit facility
when it missed monthly interest payments due to the banks from
September through November.  The company expects to obtain a
waiver of the defaults and add the missed interest payments to
principal under the credit facility. 

Pinnacle Holdings, Inc., secured a waiver of default from lenders
through Dec. 12 after it violated bank credit facility covenants. 
Pinnacle said it continued to work with lenders on permanent
amendments to cure the violations.  It will be unable to draw
funding from the credit facility until some new agreement is
reached.  

Verizon Communications, Inc., filed with the Securities and Ex-
change Commission for a proposed offering of up to $5 billion of
debt securities.  Proceeds are slated to repay short-term debt,
among other corporate purposes.

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

FRANCE TELECOM ISSUES $2.6B OF CONVERTIBLES--
France Telecom SA today took advantage of low interest rates and
issued convertible notes that will provide the company with net
proceeds of 3 billion euros ($2.6 billion).  France Telecom
intends to use the funds to refinance existing debt at more
favorable rates.  The 4% notes due 2005 can be exchanged for
France Telecom shares at a price of 72 euros ($63.12) per share,
47% above yesterday's closing price.

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

AT&T CLOSES ON $10B BOND SALE--
AT&T Corp. announced the official sale of its $10 billion global
bond offering, which included $7 billion in U.S.-denominated debt
and the remainder in euro-denominated securities.  Proceeds were
slated to retire short-term debt.

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

SHAW COMMUNICATIONS FILES $800M DEBT SHELF--
Shaw Communications, Inc., filed a shelf offering with the
Securities and Exchange Commission for up to $800 million in debt
securities and preferred stock, according to reports.  Proceeds
would be used to repay debt and provide working capital, among
other uses. 

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

ANADIGICS SEALS $75M NOTE SALE--
Anadigics, Inc., said it had arranged to sell $75 million of
convertible senior notes through a private sale to institutional
buyers.  The note offering may be increased to $100 million, the
company said. 


************************************************************
PEOPLE ON THE MOVE 
************************************************************
WINSTAR EXECs WILL TRY TO BUY COMPANY--
William J. Rouhana Jr. has resigned as chairman and chief execu-
tive officer of Winstar Communications, Inc., so that he can
submit a bid for the company during a planned bankruptcy auction. 
The company's president and chief operating officer, Nathan
Kantor, resigned for the same reason, the company said today. 
Frank J. Jules, president and COO of Winstar's U.S. operations,
was named acting CEO.  Board member Steven B. Magyar will become
acting chairman.  The company intends to ask the U.S. Bankruptcy
Court for the District of Delaware to schedule an auction next
month.  Winstar filed for bankruptcy protection in April
(TRDaily, April 18).

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

METROMEDIA FIBER NETWORK CEO RESIGNS--
Nicholas Tanzi will resign as chief executive officer of
Metromedia Fiber Network, Inc., effective Nov. 30, for personal
reasons, the company said today.  He will be succeeded by Mark
Spagnolo, currently the company's president and chief operating
officer.

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

NEW PRESIDENT FOR SPACE SYSTEMS/LORAL--
C. Patrick DeWitt has been named president of Space Systems/Loral
(SS/L) and vice president of Loral Space & Communications Ltd. 
Since 1999 he has been a member of SS/L's office of the presi-
dent.  He succeeds John M. Klineberg, who is retiring but will
remain an SS/L board member.

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

ACTERNA GENERAL MANAGER--
David Holly has been named general manager of Acterna Corp.'s
cable networks division in Bradenton, Fla.  He was the company's
vice president-strategic marketing and communications and has
been with the company since 1991.  Acterna is a communications
network testing company based in Germantown, Md.

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

NEW MANAGER AT TELIA--
Telia AB has named Joel Westin a full member of its group manage-
ment for a 15-month period.  He joined Telia in 1997 and will
retain his current duties in Telia's networks business area
during his management tenure.  He succeeds Emanuela Pedrocco on
the management team.


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