Thanks, Allison!
----- Forwarded by Sue Nord/NA/Enron on 02/09/2001 03:43 PM -----

	Allison Navin
	02/09/2001 10:08 AM
		
		 To: Stephen D Burns/Corp/Enron@ENRON, Sue Nord/NA/Enron@Enron, Scott 
Bolton/Enron Communications@Enron Communications
		 cc: 
		 Subject: Re: TR Daily, February 05, 2001

The report is attached.  The date on the cover of the report says February, 
2000, but it is in fact February, 2001.







	Stephen D Burns
	02/06/2001 03:30 PM
		 
		 To: Allison Navin/Corp/Enron@ENRON
		 cc: 
		 Subject: TR Daily, February 05, 2001

Can you?

----- Forwarded by Stephen D Burns/Corp/Enron on 02/06/2001 02:29 PM -----

	Sue Nord
	02/06/2001 01:31 PM
		 
		 To: Stephen D Burns/Corp/Enron@ENRON, Scott Bolton/Enron 
Communications@Enron Communications
		 cc: 
		 Subject: TR Daily, February 05, 2001

Would Allison be available to track down a copy of the consumer groups report?


----- Forwarded by Sue Nord/NA/Enron on 02/06/2001 01:30 PM -----

	"Telecommunications Reports International, Inc." <trnews@tr.com>
	Sent by: root@chrivh40.cch.com
	02/05/2001 06:03 PM
		 
		 To: "Telecommunications Reports International, Inc." <tr_news_letter@cch.com>
		 cc: 
		 Subject: TR Daily, February 05, 2001



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

Telecommunications Reports presents....

                                  TR DAILY
                                  February 5, 2001
--------------------------------------------------

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Table of Contents
Click here for the full issue:
http://www.tr.com/online/trd/2001/td020501/index.htm

FRUSTRATED JUDGES FOCUS ON BACKGROUND IN `AVERAGE
SCHEDULE' CASE
http://www.tr.com/online/trd/2001/td020501/Td020501.htm

CLECs WANT RECORD ON PACIFIC BELL
InterLATA SERVICE BID `REFRESHED'
http://www.tr.com/online/trd/2001/td020501/Td020501-01.htm

CONSUMER GROUPS CALL FOR `PRO-COMPETITIVE' FCC
ACTION
http://www.tr.com/online/trd/2001/td020501/Td020501-02.htm

MOBILE PHONE INDUSTRY FACES LATEST HEALTH-RELATED
LAWSUIT
http://www.tr.com/online/trd/2001/td020501/Td020501-03.htm

ILECs:  `DISTORTIONS' FROM `RECIP COMP' COULD GET
WORSE
http://www.tr.com/online/trd/2001/td020501/Td020501-04.htm

NEWS IN BRIEF
http://www.tr.com/online/trd/2001/td020501/Td020501-05.htm


*******************************************************
FRUSTRATED JUDGES FOCUS ON BACKGROUND IN `AVERAGE
SCHEDULE' CASE

Appeals court judges today vented their exasperation at the inability of
attorneys to explain how universal service support for each small,
"average schedule" company is determined.  The attorney representing the
FCC bore the brunt of the judges' frustrations and, at times, caustic
comments on that issue.

But on the legal issues, the lawyer representing the National Exchange
Carrier Association, Inc., in its challenge to an FCC decision seemed to
take the harder hits.  The U.S. Court of Appeals in Washington must
decide whether the FCC acted "arbitrarily and capriciously" in prescribing
a 6.5% increase in "average schedule" universal service support.

"Average schedule" companies use formulas derived by NECA and
approved by the FCC to approximate their per-loop costs of providing
service.  This is in contrast to so-called "cost companies," which perform
studies to calculate their actual per-loop costs.

The case marks the first time that NECA, which the FCC has charged
with updating the formula used by "average schedule" companies to
calculate universal service support, has asked the court to review an FCC
order, NECA attorney Richard A. Askoff pointed out during oral
arguments this morning.

The judges spent as much time seeking information on how the "average
schedule" mechanism works as they did questioning attorneys about their
legal arguments.  Judge David S. Tatel asked for clarification of how the
"average schedule" formula was applied to individual companies.

After FCC attorney Laurel Bergold spent nearly all her allotted time in an
unsuccessful attempt to clarify that aspect of the case, Chief Judge Harry
T. Edwards commented, "We get hard things from the FCC, but this
[case] is bizarre."

Mr. Askoff apparently cleared up the matter for the judges during his
rebuttal arguments.  He explained that certain data (such as the number
of loops per exchange) is plugged into the "average schedule" formula to
determine a given carrier's amount of support.

But Mr. Askoff faced some tough questions from Judge Douglas H.
Ginsburg regarding NECA's argument that it hadn't received proper
notice of the FCC's intention to prescribe the 6.5% adjustment.  Judge
Ginsburg wondered what NECA would have said to the FCC, if it had
received notice, that it didn't say in advocating a 33% increase in
universal service support for "average schedule" carriers.

Mr. Askoff said NECA would have discussed the "fallacy" of the FCC's
belief that universal service support should be tied to growth in the
number of local loops.  Judge Edwards replied that NECA already had
made that argument before the FCC.

The case ("National Exchange Carrier Association, Inc., v. FCC," no. 00-
1055) stems from an FCC decision to reject NECA's proposed "average
schedule" universal service formula for 1998-1999.


*******************************************************
CLECs WANT RECORD ON PACIFIC BELL
InterLATA SERVICE BID `REFRESHED'

The California Office of Ratepayer Advocates, several trade associations
representing competitive local exchange carriers (CLECs), and nine
individual CLECs have asked the state Public Utilities Commission to
"refresh" its record on Pacific Bell's compliance with federally mandated
market-opening standards before deciding whether the telco has met those
standards.

In a joint petition filed Friday, Feb. 2, they argued that the record in the
proceeding was "too stale" for the commission to reach credible
conclusions about Pacific Bell's compliance with the market-opening
mandates by May 24--the date the commission is scheduled to issue a final
decision.

Compliance with a 14-point competitive "checklist" of market-opening
moves outlined in section 271 of the federal Telecommunications Act of
1996 is a prerequisite to Bell companies' receiving FCC authorization to
provide in-region interLATA (local access and transport area) service. 
The FCC is required to consult with relevant state commissions and the
Justice Department before ruling on a Bell company's section 271
application.  Bell companies typically try to convince the state regulators
of their compliance before submitting an application to the FCC.

The joint petitioners told the California commission that the record in the
proceeding could be supplemented "in a relatively prompt and efficient
manner."

If "Pacific Bell intends to include updated or other additional information
in its application to be filed with the FCC, then it should make
thatinformation available to the [California commission] and the parties to
this proceeding now," the petitioners said.  Such action would be
"consistent with the FCC's goal that the state commission be the principal
forum for resolving factual disputes in the first instance, rather than
require the [California commission] and the parties to address Pacific
Bell's showing for the first time after being thrust into an expedited
review process before the federal agency in Washington, D.C."

In addition to the Office of Ratepayer Advocates, the joint petitioners
were the California Association of Competitive Telecommunications
Companies, the Association of Communications Enterprises, the
Competitive Telecommunications Association, AT&T Communications of
California, Inc., WorldCom, Inc., Advanced Telcom, Inc., XO
California, Inc., Spring Communications Co. LP, New Edge Network,
Inc., ICG Telecom Group, Inc., Rhythms Links, Inc., and Time Warner
Telecom of California, Inc.


*******************************************************
CONSUMER GROUPS CALL FOR `PRO-COMPETITIVE' FCC
ACTION

The Consumer Federation of America and Consumers Union today issued
a report stating that policy-makers have failed in their attempt to expand
consumer choice in local and broadband services.  In "Lessons from the
1996 Telecommunications Act," the groups called for increased regulation
of large companies that "continue to monopolize the cable TV and local
telephone industries."

The report said the Act's failure stems from the fact that the major
providers of cable TV and local phone service have chosen to merge
rather than compete.  "Most of the local phone service market still
belongs to the regional Bell monopolies, which, thanks to a series of
mergers, have shrunk from seven companies in 1996 into just four today,"
the groups said.

The report asked lawmakers to promote "meaningful competition" among
local service providers by pressing for adoption of certain market-opening
principles nationwide.  It specifically cites local market-opening moves in
New York and Texas.

In the broadband services market, a handful of dominant companies have
refused to enter each other's markets, agreeing instead to merge and swap
assets, the report says.  "Cable monopolies have saddled consumers with
huge rate increases and sought to impose their closed business model on
the broadband Internet by making it nearly impossible for outside
companies to offer Internet services over the monopolies' cable lines," the
groups stated.

They asked lawmakers to put an end to "abusive" cable TV pricing
practices, require telcos to provide nondiscriminatory access to their
high-speed networks, enforce media ownership limits that promote
diversity, and block further consolidation that undermines potential
competition.  


*******************************************************
MOBILE PHONE INDUSTRY FACES LATEST HEALTH-RELATED
LAWSUIT

The wireless phone industry is facing another lawsuit, this one filed on
behalf of a 38-year-old Georgia man who says his cellphone caused his
brain tumor.  It's the latest in a growing number of such lawsuits alleging
that the industry manufactured and marketed the devices despite knowing
their potential adverse health effects.

The lawsuit, "Brian Lane Barrett and Diana Barrett v. Nokia Corp. et al."
(case no.2001CV33385), was filed in Fulton County Superior Court in
Atlanta Jan. 29.  In addition to Nokia, the lawsuit names BellSouth
Mobility, Inc., and the Cellular Telecommunications Industry Association
(now the Cellular Telecommunications & Internet Association) as
defendants.  It seeks compensatory and punitive damages but doesn't list
an amount.

The 10-count lawsuit claims that the defendants "knew or should have
known" the phones "to be defective, unreasonably dangerous, and
hazardous."

Spokespersons for the defendants declined to comment on the lawsuit. 


*******************************************************
ILECs:  `DISTORTIONS' FROM `RECIP COMP' COULD GET
WORSE

Incumbent local exchange carriers (ILECs) say their reciprocal
compensation payments to competitive local exchange carriers (CLECs)
are continuing to increase, making it even more imperative that the FCC
change its rules regarding the payments  between carriers for terminating
local traffic.  The ILECs told the FCC that declining network costs and
increasing traffic flows are producing "ever greater economic
inefficiencies and distortions."

Robert T. Blau, vice president-executive and federal regulatory affairs at
BellSouth Corp., addressed the issue in a Feb. 1 letter to Common Carrier
Bureau Chief Dorothy Attwood.  He wrote on behalf of BellSouth, SBC
Communications, Inc., Verizon Communications, Inc., and Qwest
Communications International, Inc.

Mr. Blau acknowledged that reciprocal compensation rates are declining,
but he said dial-up traffic to the Internet is increasing faster.  Most
observers project that dial-up access minutes will continue to grow rapidly
for at least the next three years, Mr. Blau said.  In addition, changes in
technology and capital cost reductions are "offsetting reciprocal
compensation declines," he said.

Mr. Blau estimated that the cost to CLECs of carrying dial-up calls to
Internet service providers (ISPs) "works out to about $0.0001 per minute,
or about 2% to 5% of current reciprocal compensation rates."  He said
eliminating reciprocal compensation in favor of a "bill-and-keep" system
would not force CLECs to raise per-line fees for ISP customers.


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

Former National Telecommunications and Information Administrator
Gregory L. Rohde is heading up e-Copernicus.com, a new subsidiary of
the government relations firm Dutko Group, Inc.  E-Copernicus will offer
consulting services to domestic and international Internet-based businesses
and companies involved in electronic and mobile commerce....

Viatel, Inc., says Alfred West has resigned as chairman.  He was founder,
chairman, and chief executive officer at Destia Communications, which
Viatel acquired in December 1999....

Yuval Bloch has been named president and general manager of Invisix, a
joint venture of Motorola, Inc., and Cisco Systems, Inc.  Mr. Bloch was
vice president and GM in Israel for Motorola's Telecom Carrier Solutions
Group....

Steven M. Reimer has been named senior vice president-customer
operations at Mpower Communications Corp., a Rochester, N.Y.-based
competitive local exchange carrier.  He was VP-operations at AT&T
Broadband....

Wireless broadband technology manufacturer Malibu Networks, Inc., has
named John Skoro senior vice president-marketing and business
development.  He was marketing director-broadband wireless solutions at
Nortel Networks Corp.... 

Shaya Phillips was named networking director at Global Broadband, Inc.,
a New York City-based integrated communications provider.  He was
director-enterprise networking services at St. John's University.... 

Douglas G. Bonner has become a partner in the Washington law office of
LeBoeuf, Lamb, Greene & MacRae LLP.  Elizabeth Dickerson and Brett
Snyder were named associates.  They've come to the firm's telecom
practice group from Arent Fox Kintner Plotkin & Kahn PLLC....

In the House Energy and Commerce Committee, Will Nordwind has been
named counsel to the telecommunications subcommittee.  He was deputy
chief of staff, legislative director, and counsel to Rep. Fred Upton (R.,
Mich.), who has become chairman of the subcommittee.  In other staffing
news, Commerce Chairman W.J. (Billy) Tauzin (R., La.) announced
today that Patrick Morrisey will be his deputy staff director and policy
coordinator.  Mr. Morrisey previously worked as a health counsel to the
Commerce Committee.  In the subcommittee on commerce, trade, and
consumer protection, Rep. Tauzin has tapped Ramsen Betfarhad to be
counsel.  Mr. Betfarhad previously was counsel and economic adviser to
former House Commerce Committee Chairman Thomas J. Bliley Jr. (R.,
Va.)....

Telecom Italia SpA intends to raise as much as 12.8 billion euros ($12
billion) by exchanging ordinary shares for a lesser class of stock called
savings shares.  Shareholders who participate in the exchange would pay
Telecom Italia 6.25 euros per share ($5.87) to upgrade their stock. 
Telecom Italia would use the proceeds to buy back up to 10% of its
ordinary shares, including those held by parent company Olivetti SpA. 
If the share exchange and buyback go as planned, Olivetti's stake in
Telecom Italia would drop from 58.4% to about 40%.  But the transaction
would provide Olivetti with up to 5.1 billion euros ($4.8 billion) to use
for debt reduction.  The companies expect to complete the transactions,
which are subject to shareholder approval, by August....

Qwest Communications International, Inc., is offering to buy back about
$1.1 billion in senior notes.  A cash tender offer for the notes will expire
March 5.  Qwest said it intended to retire the notes because they have
high interest rates....

Community News LLC has agreed to make a voluntary $7,500
contribution to the U.S. Treasury for failing to obtain FCC authorization
before transferring control of a land mobile radio station.  The agreement
was part of a consent decree with the FCC's Enforcement Bureau.  The
Massachusetts company used the station to communicate with newspaper
delivery trucks and personnel.  The bureau released the decision today in
file number EB-00-IH-0433....

The FCC's new universal licensing system (ULS) for electronically
processing applications and other paperwork still isn't working properly,
according to the Association of Public-Safety Communications Officials-
International (APCO).  APCO is asking public safety agencies that have
made frequency-allocation requests to be patient in light of the delays in
implementing the system.  In most cases, applicants must obtain frequency
coordination through a certified coordinator before their paperwork can be
approved.  Phase II of the conversion of the land mobile radio services to
the ULS took effect last October, APCO pointed out.  But no public-
certified frequency coordinator successfully has submitted an application
electronically to the FCC, it said.  The new ULS forced frequency
coordinators to redesign their software in just a few months, APCO
said....

The Canadian Radio-television and Telecommunications Commission says
it will establish two numbering-relief planning committees to develop
telephone number resource-allocation plans.  CRTC plans to form a
committee to assess numbering needs within area code 519; another
committee will study area codes 613 and 819.  The committees will
submit to the CRTC relief-implementation proposals that, if approved,
would require mandatory compliance by all telecom carriers serving those
areas, the CRTC said today....

The FCC has renewed the charter of the Public Safety National
Coordination Committee (NCC) for two more years, beginning Feb. 25. 
The NCC advises the agency on technical and operational standards for
the 700 megahertz band interoperability channels.


********************************************************
TR DAILY Copyright 2001 Telecommunications Reports International,
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