France Telecom (FT) said its Itineris GSM wireless service added 2.5 million subscribers in quarter ended Dec. 31, increasing total wireless base to 14.3 million. FT said it added record 278,000 in weekend before Christmas. In Dec., more than 450,000 Itineris subscribers used Wireless Application Protocol (WAP) services, threefold increase from Sept. FT has target of one million “active” WAP users by summer.

NorthPoint and Verizon are arguing over legal venue in their merger breakdown suits. Verizon’s motion for stay to halt suit brought in Cal. court, heard Jan. 3, was countered by NorthPoint’s motion for stay to keep proceedings out of Del., where Verizon began proceeding. NorthPoint said it would be “hardship” to litigate in Del., its counsel said, but Verizon said Del. was appropriate. Hearing on NorthPoint’s motion is scheduled Jan.17.

Several members of Congress got off to fast starts this week, introducing Internet-related bills on familiar topics within days of returning to Washington. Among them: (1) Rep. Green (D-Tex.) introduced bill (HR-95) to protect “individuals, families and Internet service providers” from spam. It was referred to both Commerce and Judiciary Committees. (2) Rep. Frelinghuysen (R- N.J.) offered bills to require Federal Trade Commission to set regulations protecting Internet privacy (HR-89) and to regulate Internet companies’ use of social security numbers and other personally identifiable information (HR-91). He also dropped measures prohibiting telemarketers from interfering with any caller ID service (HR-90) and to ensure efficient allocation of phone numbers (HR-92). All were referred to Commerce Committee, of which Frelinghuysen isn’t yet member.

Qwest Communications signed 3-year, $32 million contract to provide mysmart.com with Web hosting and development, dedicated Internet access, dial port connectivity, onsite project management, future DSL connectivity. Deal enables mysmart.com to offer nationwide Internet service at $9.95 per month. Agreement also allows mysmart.com customers to buy Qwest long distance service directly from mysmart.com. Qwest made equity investment of $5 million as part of long-term strategic alliance with mysmart.com.

NCTA submitted 2nd brief to U.S. Supreme Court, seeking to convince high court to review appellate court ruling that struck down FCC’s authority over pole attachment rates for cable lines carrying Internet service. In 10-page reply brief filed Jan. 2 in Gulf Power case, NCTA argued that decision by 11th U.S. Appeals Court, Atlanta, “improperly rejected the FCC’s reasonable construction of Section 224” of Telecom Act and wrongfully concluded that “Congress intended to repeal the regulatory authority that the FCC admittedly possessed over pole attachments regardless of the type of service provided over the equipment attached to the poles.” NCTA also contended that “this case squarely presents an issue of national importance that was improperly decided” by lower court. It said utilities’ claims that “they are constitutionally entitled to recover so-called monopoly ‘market rates’ for providing access to essential bottleneck facilities is contrary to settled law and, if accepted, would render all rate regulation of monopoly enterprises unconstitutional.” Cable operators charged that utilities had been increasing pole attachment rates substantially since 11th Circuit ruling last spring. But utilities contended that they were entitled to get what market would bear.

Boeing Space Systems (BSS) received $160 million contract potentially worth $1.3 billion to develop high-capacity communication system for U.S. Air Force and Army by 2005, company said Thurs. Harris Corp., Logicon and ITT Industries are working with Boeing on project. Fixed-price agreement calls for first satellite to be launched in 2004 at cost of $160.3 million. If Pentagon exercises its options for 5 more satellites, business could be worth $1.3 billion. Boeing is using its new 702 model satellite bus and associated spacecraft and payload equipment. Team of technicians is expected to provide associated control equipment for both payload and spacecraft.

Despite steep rise in Internet use, consumers remain devoted to watching TV, listening to music and even reading, according to latest home media study released by CTAM. Monthly telephone survey of 1,000 consumers found home Internet usage soaring to 58% of PC households in Dec., from 38% year earlier. It also found that more than 50% of U.S. homes now had at least one PC and 40% were online. In addition, study said, 31% of consumers now have TV sets and PCs in same room. But watching TV remains most popular way of spending leisure time, with 98% of consumers reporting that they view shows, equal to ratio in 1999 and up from 96% in 1998. Study said 36% of households now owned large-screen TVs (bigger than 35 inches), up from 22% in 1998. Consumers’ top expected purchases in 2001 are PCs (16%), DVD players (11%), CD players (11%).

Wireless Internet and e-mail provider OmniSky plans to acquire NomadIQ in all-stock transaction worth at least $18.75 million based on buyer’s Wed. closing price of $7.50 per share. Privately held NomadIQ provides location-based applications and services for handheld devices. OmniSky said it would issue 2.5 million shares of common stock, as well as up to one million additional shares over 12 months if certain performance targets were met.

“Nothing would be gained by further delaying a decision” on core DTV must-carry issues, NAB Pres. Edward Fritts said in letter Thurs. to FCC in which he said Commission could defer decision on must-carry itself while adopting some “rules of the road” for carriage of DTV stations. He said there would be no benefit in delay, “certainly nothing that would be worth the harm to the progress of the transition.” NAB also pressed FCC for requirement that all new TV sets have tuner capable of receiving DTV.

Integra Telecom said it secured $41 million in equity financing from shareholders including Bank of America Capital Investors, Boston Ventures, Navis Partners, Shaw Venture Partners. Investment will be used to expand Integra’s customer base in its regional markets and pushes its total financing in 2000 to $252 million. Integra CEO Dudley Slater said he was “gratified” by market response since CLECs have been struggling for financing. Integra provides telecom services to small and midsized businesses.