Communications-related Headlines for 10/3/97
Television/International
WP: Troops Seize Bosnian Serb TV Towers
WP: Bosnian Serb TV Chief Warns West
Journalism/Advertising
WP: CNN Stops Airing Ad Campaign
WSJ: *This* Is CNN?
FCC
FCC: Statement of William E. Kennard
WorldCom/MCI Merger
WSJ: WorldCom Bid Leaves MCI Few Options
WP: Worldcom Would Shift MCI's Focus
NYT: British Telecom, Outbid for MCI, Is Facing Hard Choices
NYT: MCI-Worldcom Match: They'll Fit, or Won't
Cable/Internet
WSJ: Intel and Microsoft Split Over Internet-TV Gear
Public Television
NYT: Chief Named at Corporation for Public TV
Encryption/Privacy
NYT: PGP Offers New Encryption Software for Corporations
NYT: An Attack on Privacy Rights
Radio
WP: Kids' Stations Pull The Plug
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* Television/International *
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Title: Troops Seize Bosnian Serb TV Towers
Source: Washington Post (A1) (10/2/97)
http://www.washingtonpost.com/
Author: Lee Hockstader
Issue: Television/International
Description: NATO-led troops seized control of 4 TV broadcasting towers
in the Serb-controlled half of Bosnia to secure balanced coverage by the
media. This move capped off weeks of contention between the state
television station and top Western military and civilian officials, who were
incensed by broadcasted propaganda against NATO and internat'l Bosnia
officials. U.S. Gen. Wesley Clark said that transmitters will be handed
over to Serb President Biljana Plasvic, someone the West favors more than war
criminal Karadzic. Officials say that they hope to make an arrangement under
which the rival Serb factions will share airtime. The seizure of the towers
have the NATO generals and Western diplomats casting themselves as media
execs determined to make an even-handed state TV station in a country that has
never had one. Ambassador Carlos Westendorp, the top Western mediator, said
"[Bosnian Serbs] are entitled to hear the truth in fair and balanced reports."
Title: Bosnian Serb TV Chief Warns West
Source: Washington Post (A36)
http://washingtonpost.com/
Author: Lee Hockstader
Issue: Media Control
Description: Miroslav Toholj issued a thinly veiled threat of retaliation
to Western peacekeepers the day after they seized control of 4 key radio
stations. "I fear there will be some uncontrolled actions and unpleasant
conditions for your soldiers and international organizations," Tohlj said.
"We won't be able to control the situation." Carlos Westerndorp, chief
western mediator, issued a statement through a spokesman justifying the
seizure. He cited Serb TV system's use of the airwaves as "both a tactical
and strategic weapon...to block the truth from the people of the Serb
Republic, and to frustrate the peace process." Westerndorp also recommended,
as one of the changes in the TV system's governing board, that Toholj must
go. Toholj asserted that the real reason for the seizure was the West's
determination to secure political gains with Serb President Bilijana Plavsic.
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* Journalism/Advertising *
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Title: CNN Stops Airing Ad Campaign
Source: Washington Post (B2)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/03/093l-100397-idx.html
Author: Howard Kurtz
Issue: Journalism/Advertising
Description: A heavy ad campaign about global warming aired on CNN was
pulled under order of Ted Turner, who is a known environmentalist. (Last
month Turner was talking about global warning on "Larry King Live".) After
being informed of CNN's decision, Ben Goddard, the adman who created the
ads, said, "[T]his was millions of dollars going out the door. I pointed
this out...it didn't seem to make good sense, if the ads were good enough to
run up to now." CNN spokesman Steve Haworth said that "it has been our
policy for years not to
run ads on controversial news stories that we are covering...Our principles
are worth more than the ad dollars." Yet, Goddard noted CNN ran
industry-backed "Harry and Louise" ads on health care reform (which he also
produced) while the media covered it
intensively. Haworth said that no ads would be accepted from any faction in
the controversy.
Title: *This* Is CNN?
Source: Wall Street Journal
http://wsj.com/ (A10)
Author: WSJ Editorial
Issue: Journalism/Advertising
Description: CNN has pulled ads critical of the United Nations treaty to
curb global warming. A CNN spokesman said that "inattentive viewers might
confuse the ads with news coverage and vice versa." The editorial criticizes
CNN because it did not lift issue ads during coverage of NAFTA, health care
reform, or tort reform. By CNN's logic, if the cable news channel decided
not to cover Sen Thompson's campaign finance hearings, it would accept issue
ads promoting their importance to the public. "By pulling the plug on a
responsible point of view in a public debate, CNN is circumscribing
give-and-take over" the issue.
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* FCC *
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Title: Statement of William E. Kennard
Source: FCC
http://www.fcc.gov/commissioners/kennard/statements/wek701.html
Author: William E. Kennard
Issue: FCC
Description: Statement of William E. Kennard at his confirmation hearing
before the United States Senate Commerce, Science, and Transportation
Committee.
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* WorldCom/MCI Merger *
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Title: WorldCom Bid Leaves MCI Few Options
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: John Keller
Issue: Mergers
Description: Senior executives at MCI are trying to figure out a response to
WorldCom's takeover bid. There may be little to do but negotiate with the
unsolicited suitor: 1) the WorldCom deal is $9 billion more than British
Telecom's offer, 2) it produces billions in cost savings that would not have
been seen otherwise, and 3) it will give MCI access to local networks and
Internet facilities world-wide that MCI otherwise would have had to build
itself. If MCI executives turned down WorldCom, they would have to convince
shareholders that BT's lower bid was better. WorldCom's stock continues to soar.
Title: Worldcom Would Shift MCI's Focus
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/03/134l-100397-idx.html
Author: Mike Mills
Issue: Corporate Communications Merger
Description: If Worldcom's proposed $30 bill. buyout is finalized then
MCI would focus solely on more profitable business customers and jettisoning
approx.
20 million residential long-distance customers, according to a top official
of the purchasing company. John Sidgmore, vice chairman of Worldcom, said
that customers would likely be transferred to regional Bell companies. This
set-up would have calls on Worldcom/MCI wires, but rates and billing would
set by other companies. Worldcom would be "selling" MCI customers to other
companies, who pay for rights to serve established accounts, but customers would
have the legal right not to stay with the company they were moved to. When
all of this would occur is still unknown, Worldcom would have to wait until
next year to actually buy MCI. "We're not saying [the end of the residential
service] is going to happen on day one," Sidgmore said. Initially "we're
going to market to consumers just like MCI does. On the other hand, our
strategy is not in the consumer business."
Title: MCI-Worldcom Match: They'll Fit, or Won't
Source: New York Times, C1, C6
http://www.nytimes.com/yr/mo/day/business/index.map?239,205
Author: Seth Schiesel
Issue: Mergers
Description: While Worldcom has been successful in acquiring more than a
few companies over the past five years, its record is not as impressive when
it comes to retaining their top executives. Similar questions are now being
raised in regards to the MCI management team. A response to Worldcom's
offer is expected from MCI in the next three weeks, but if a merger does go
through analysts do not expect many of MCI's executives to stay on board.
If this is the case, analysts also wonder as to whether Mr. Ebbers,
Worldcom's chair, will be able to confidently manage the corporate power.
Bryan van Dussen, an analyst for the Yankee Group, a high-technology
research firm in Boston, said "the enthusiasm for Worldcom is driven by
mergers and acquisitions and it can be difficult to assess its ability to
execute. Does Worldcom have the ability to manage the consumer base that
represents 40 percent of MCI's revenue? Does Worldcom have the ability to
manage a product line as complex as MCI's?" At the moment investors seem to
think so as both MCI and Worldcom's stock are on the rise.
Title: British Telecom, Outbid for MCI, Is Facing Hard Choices
Source: New York Times, C6
http://www.nytimes.com/yr/mo/day/news/financial/worldcom-mci.html
Author: Edmund L. Andrews
Issue: Mergers
Description: Some wonder how British Telecommunications will remain a big
player in the telecommunications field if they lose the MCI merger
opportunity. With both Deutsche Telekom and France Telecom swiftly moving
ahead in their alliance with Sprint and the EU opening telephone markets to
competition in 1998, it is understandable that there are questions being
raised. But BT appears to be confident in whatever the final outcome may
prove to be, for as an anonymous institutional investor in BT pointed out
"it is a win-win situation." BT could merge with MCI, they could continue
in an existing venture with MCI or they could sell their stake in MCI to
Worldcom "for an expected $1.7 billion profit" and look for another
telecommunications partner. BT continues to remain silent refusing to
elaborate on the one-sentence statement they offered yesterday that they are
"considering the issues."
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* Cable/Internet *
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Title: Intel and Microsoft Split Over Internet-TV Gear
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: Don Clark
Issue: Cable/Internet
Description: In a rare split for the personal computer duopoly, Intel is
supporting a rival technology for bringing the Internet to households
through cable set-top boxes. Intel will back the standards for digital cable
TV spearheaded by Network Computer Inc, a company owned by Microsoft rival
Oracle and Netscape. The competing groups have sent the different standards
to CableLabs, a cable research and development consortium that is soliciting
proposals for the next generation of TV set-top boxes.
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* Public Television *
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Title: Chief Named at Corporation for Public TV
Source: New York Times, C5
http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+69+
0++%28chief%20named%20at%20corporation%20for%20public%20tv%29%20AND%20%28%29
%20AND%20%28%29
Author: Glenn Collins
Issue: Public Television
Description: Robert T. Coonrod was "unanimously and enthusiastically" named
president and chief executive of the Corporation for Public broadcasting on
Wednesday.
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* Encryption/Privacy *
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Title: PGP Offers New Encryption Software for Corporations
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/100397pgp.html
Author: Peter Wayner
Issue: Encryption
Description: Pretty Good Privacy software company announced a new version
of their encryption software yesterday. This new version, called PGP for
Business Security 5.5, would "make it easier for companies to deploy
encryption throughout their organization." This key management system
allows companies to recover more rapidly from any potential industrial spy
breakthroughs, to access the files of an employee who is sick, injured or
fired, as well as offering more power to enforce corporate policy through
knowledge of employee's files.
Title: An Attack on Privacy Rights
Source: New York Times, A22
http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+23+
0++%28an%20attack%20on%20privacy%20rights%29%20AND%20%28%29%20AND%20%28%29
Author: NYTimes Editorial Staff
Issue: Encryption
Description: Last month, FBI Director, Louis Freeh, urged Congress to
outlaw the manufacturing of any encryption technology that the government
could not easily break. The bill, which quickly passed through the House
Intelligence Committee, was brought to a halt in the House Commerce
Committee due to lobbying efforts by electronic and media companies,
scientists, and privacy advocates. This bill, if made into law, would not
be effective since there is uncrackable encryption software already
available overseas. Even worse, the plan could severely cripple encryption
technology. "In a threat to privacy, the bill sets a lower legal standard
for the Government to get passwords than it must now meet to tap phone
calls. The best way to reduce many types of industrial and financial crime
is to provide citizens powerful encryption so they can communicate without
fear of corporate spies and thieves." The debate continues to move
(forward?) in regards to constitutional rights and the amount of privacy
people can expect in cyberspace.
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* Radio *
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Title: Kids' Stations Pull The Plug
Source: Washington Post (B1) (10/2/97)
http://washingtonpost.com/
Author: Marc Fisher
Issue: Radio
Description: The Radio Zone, an AM band children's radio show, will be
pulled off the air near the end of Nov. as the result of a buyout by Mega
Broadcasting. "Just one more unique voice snuffed out of the radio
business...we did the best we could for five years," said Virginia Carson,
the chief exec. of Capitol Kids Radio of Silver Spring, the station's owner.
The two Washington-area stations, WKDL-1050 and WKDV-1460, will be converted
to Spanish-language programming. No price has been announced. The Radio
Zone's Baltimore station, WKDB-1570 is still on the market. Many
schoolchildren and parents were moved to campaigns to save the station, but
it was just too late. The station's closure was announced on the day before,
an unusual move, but as Carson said, "We want to have some closure for the
kids. We want to leave in a responsible way."
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We are outta here. Have a great weekend.