June 1998

Communications-related Headlines for 6/16/98

Universal Service: E-Rate
Lawmakers from Both Sides Criticize FCC E-Rate Cut
(TelecomAM)
Debate on Wiring School for the Internet Ignores a Larger, Sillier
Phone Subsidy (WP)

Internet
Privacy Issues Related to Electronic Commerce (NTIA)
Times Guide to Entertainment Opens on the Internet Today (NYT)

Mergers -- Get 'Em While They're Hot
Leahy to Introduce Bill Restricting Bell Company Mergers
(TelecomAM)
Nortel to Buy Bay Networks for $9 Billion (TelecomAM)
Phone Giant To Acquire Bay Networks (NYT)
Northern Telecom To Buy Bay Networks (WP)
Nortel Agrees to Acquire Bay Networks (WSJ)
Teleglobe and Excel Create 4th-Largest Long Distance Carrier
(TelecomAM)
MCI Likely to Sell Rest of Internet Business for Merger Approval
(TelecomAM)

Cable
Microsoft and Compaq to Buy 10% Stakes in Road Runner (NYT)
Microsoft, Compaq Make Net-Access Bet (WSJ)
Advertising: Ziff-Davis Pushes ZDTV (NYT)

** Universal Service: E-Rate **

Title: Lawmakers from Both Sides Criticize FCC E-Rate Cut
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The FCC's June 12 decision to cut $1 billion from the e-rate
program does not have many supporters in Congress. Rep. Dingell (D-Mich.),
senior Commerce Committee Democrat, said he supports the e-rate, but said "I
am not sure that making a smaller illegal program out of a large illegal
program serves that purpose." The Chairmen of the House and Senate Commerce
Committees spoke out against the move on Friday. Olympia Snowe (R-ME) and
Jay Rockefeller (D-WV) said: "It is disappointing that the FCC cut back this
important program because of pressure from the companies." However it is
important to remember that "we are still moving forward -- more slowly, but
steadily." AT&T and MCI announced that they will reduce charges on
consumers' bills to reflect the cut. They said they will review the new
funding plan before deciding how they will reduce surcharges.

Title: Debate on Wiring School for the Internet Ignores a Larger, Sillier
Phone Subsidy
Source: Washington Post (C3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/16/034l-061698-idx.html
Author: Allan Sloan
Issue: E-Rate
Description: Allan Sloan, Newsweek's Wall Street editor, begins his piece
with a rather-humorous view of the "on-coming political battle" revolving
around the e-rate program. Next he offers a brief history of the program and
then moves into the arrival of "earthquake city" on May 26, when AT&T Corp.
announced to the FCC that it would start to charge its customers an
additional 5 percent for interstate long-distance calls -- and to "break it
out as a surcharge on millions of phone bills." Joel Lubin, an AT&T vice
president, said about the announcement: "We want only to recover the costs
we're incurring for universal service." (Note: "Universal service includes
costs for not only schools-and-libraries assessment but also the rural and
high-cost subsidies that AT&T and other carriers had absorbed for years.")
Sloan sees the problem not in whether phone companies want to collect more
than their additional schools-and-libraries costs but in the fact that phone
service is incredibly complicated. "If you insist on phone bills showing all
the subsidies, your monthly bill will be the size of the Manhattan phone
book," says former FCC chairman Reed E. Hundt. "Untangling all of this is
like trying to straighten out an elephant's intestines." A delightful prospect.

** Internet **

Title: Privacy Issues Related to Electronic Commerce
Source: NTIA
http://www.ntia.doc.gov/ntiahome/privacy/index.html
Issue: Electronic Commerce/Privacy
Description: "The Department of Commerce, along with the Office of
Management and Budget has been asked to report to the President on industry
efforts to establish self-regulatory regimes to ensure privacy online and to
develop technological solutions to protect privacy. The President also
directed the Commerce Department and the Office of Management and Budget to
ensure that means are developed to protect children's privacy online. The
Department of Commerce requests comments on various aspects of Internet
Privacy including the effectiveness of self regulation for privacy.
Specifically, the Department of Commerce seeks comment on the staff
discussion paper "Elements of Effective Self Regulation for Protection of
Privacy." It also asks for responses to specific questions concerning online
privacy protection. In addition, the Department seeks input on the specific
instances in which government action may be necessary to protect privacy on
the Internet."

Title: Times Guide to Entertainment Opens on the Internet Today
Source: New York Times (C10)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16nytoday.html
Author: Saul Hansell
Issue: Internet Content
Description: New York Today www.nytoday.com will be available starting
today. The New York Times' Internet service will offer information about
entertainment, restaurants, and shopping in New York City. The service will
compete with Microsoft's New York Sidewalk, America Online's Digital Cities
New York, and Citysearch's Citysearch New York. "Local advertising is the
biggest and most profitable market for advertising," said Brian C. Oakes, an
analyst with Lehman Brothers who follows newspapers and Internet companies.
"It is critically important for newspapers to win the local market, both in
print and on line."

** Mergers -- Get 'Em While They're Hot **

Title: Leahy to Introduce Bill Restricting Bell Company Mergers
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: Sen. Patrick Leahy's (D-VT), the ranking Democrat on the Senate
Judiciary Committee, is expected to introduce legislation today that "would
bar local phone
companies with more than 5 percent of the nation's phone lines from merging
unless: 1) The Justice Department finds that the deal will promote
competition for exchange and access services -- 2) The FCC finds that the
companies involved in the deal have implemented the interconnection and
unbundling requirements in Sections 251 and 252 of the Telecom Act." The
Judiciary Committee is holding a hearing today on merger policy. [See the
Senate Judiciary Committee homepage http://www.senate.gov/~judiciary/
and/or Sen Leahy's page http://www.senate.gov/~leahy/]

Title: Nortel to Buy Bay Networks for $9 Billion
Source: Telecom AM
http://www.telecommunications.com/am/
Title: Phone Giant To Acquire Bay Networks
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16nortel.html
Author: Seth Schiesel
Title: Northern Telecom To Buy Bay Networks
Source: Washington Post (C1,C4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/16/038l-061698-idx.html
Author: Mike Mills
Issue: Mergers
Description: Nortel will purchase Bay Networks for $9.1 billion in stock --
the largest ever telecom equipment makers merger. Nortel said the deal
creates a "new category" of telecom manufacturers that use Internet Protocol
networks, allowing the companies to "redefine the center of the information
industry -- the unoccupied space where data and voice networks,
driven by the Internet, are expected to converge." The deal will create a
$17.7-billion company with 80,000 employees.

Title: Nortel Agrees to Acquire Bay Networks
Source: Wall Street Journal (A3,A6)
http://wsj.com/
Author: Stephanie N. Mehta & Lee Gomes
Issue: Mergers
Description: Northern Telecom Ltd. agreed to purchase Bay Networks Inc.,
which makes equipment that helps corporations manage data traffic, for $7.68
billion in stock valued at $32.40 a share. Nortel's takeover could further
accelerate the consolidation already taking place in the industry as
companies seek to offer customers a more complete menu of systems to handle
growing streams of voice, video and data traffic. By acquiring Bay, Nortel
will have a "stronger foothold" with corporate customers while possibly
increasing the line of products it offers to telephone and Internet-access
companies.

Title: Teleglobe and Excel Create 4th-Largest Long Distance Carrier
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: Canadian phone company Teleglobe will buy Excel Communications
for $3.1
billion in stock. The deal will create the fourth-largest long distance
company in North
America. Excel resells long distance service using names such as "Dial and
Save" through a network of 400,000 mostly part-time independent sales
representatives. Teleglobe will own 51.5 percent of the new company with
Excel controlling the remainder.

Title: MCI Likely to Sell Rest of Internet Business for Merger Approval
Source: Telecom AM
http://www.telecommunications.com/am/
Title: More of MCI Internet Unit Said to Be for Sale
Source: New York Times (C2)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16mci.html
Author: Seth Schiesel
Issue: Mergers
Description: In order to win approval of the proposed $37 billion merger
with WorldCom, MCI is likely to sell the rest of its Internet business.
WorldCom would retain all of its Internet business. Merrill Lynch has said
that speculation about approval of the deal is "drastically overblown" and
more sales or action "would not materially alter" the deal.

** Cable **

Title: Microsoft and Compaq to Buy 10% Stakes in Road Runner
Source: New York Times (C4)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16roadrunner....
Author: Lawrence Fisher
Title: Microsoft, Compaq Make Net-Access Bet
Source: Wall Street Journal (A3,A8)
http://wsj.com/
Author: David Bank & Leslie Cauley
Issue: Cable
Description: Microsoft and Compaq will each invest $212.5 million in Road
Runner, the joint Time Warner-Mediaone Group venture in high-speed cable
modems. The software and computer giants are seen to have an interest in
fostering the growth of high-speed Internet connections in homes. Without
greater bandwidth, consumers may se little reason to upgrade their computers.

Title: Advertising: Ziff-Davis Pushes ZDTV
Source: New York Times (C10)
http://www.nytimes.com/library/tech/98/06/biztech/articles/16tv-ziff-davis.
html
Author: Jane Levere
Issue: Advertising/Cable/InfoTech
Description: Ziff-Davis is counting on a $10 million ad campaign to
introduce a new, 24-hour cable channel devoted to computing and the
Internet. Ziff-Davis, a high-tech media and marketing company, will invest
$100 million in ZDTV over the next two years. The ad campaign will have
three audiences: cable system operators, potential viewers, and potential
advertisers.
*********

Communications-related Headlines for 6/15/98

[We're a little thin on Chicago Tribune stories today, but if you want to
know anything about the Bulls...]

Universal Service: E-Rate
A Computer in Every Classroom (WP)
FCC Is Scaling Back Effort to Connect Nation's Schools,
Libraries to Internet (WSJ)
FCC Pares School Internet Program (WP)
Services Eligible for Discounts to Schools and Libraries (FCC)
FCC Reforms Universal Service Support Mechanism for
Schools and Libraries (FCC)

Internet: Policy & Users
Family Sues Library for Not Restricting Children's Internet Access
(CyberTimes)
Critics Contend U.S. Policy On the Internet Has 2 Big Flaws (NYT)
Wielding Mouse and Modem, Elderly Remain in the Loop (NYT)

The Future of American Broadcasting
Just Talking: Public Broadcasting (NYT)
PIAC Meeting Transcript (NTIA)

Antitrust
Most Approve Of Microsoft, A Poll Shows (NYT)

** Universal Service: E-Rate **

Title: A Computer in Every Classroom
Source: Washington Post (A22)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/15/005l-061598-idx.html
Author: FCC Chairman Bill Kennard
Sec of Education Richard Riley
Issue: Universal Service
Description: Two responses to James Glassman's June 2 op-ed column
criticizing the erate program. Chairman Kennard writes, "The real issue is a
"hidden tax" but the hidden agenda of Mr. Glassman and others who oppose our
national commitment to ensuring that all Americans have access to
communications technology as we enter the 21st century." Sec Riley
concludes, "America's economy is in good shape, and our competitive edge in
technology is one of the big reasons why. We would be foolish to allow that
competitive edge to slip away. The E-rate will help America create the most
technically savvy work force in the world and protect our nation's
prosperity and democratic values."

Title: FCC Is Scaling Back Effort to Connect Nation's Schools, Libraries to
Internet
Source: Wall Street Journal (B14)
http://wsj.com/
Author: John Simons
Issue: E-Rate
Description: In a 3-2 vote last Friday, the Federal Communications
Commission decided to cut spending to the e-rate program for this year. The
action will reduce the amount that the FCC will need to collect from
telephone companies to help fund the program. The FCC's move is intended to
address complaints about high costs from consumer
groups and members of Congress. Since voting to cut the e-rate program's
budget, the FCC has decided to give top priority to those schools and
libraries most in need of Internet hook-ups, and to streamline the offices
administering the program. "We are overhauling this program and streamlining
it because giving our kids access to technology is more important than
scoring political points," said FCC Chairman William Kennard.

Title: FCC Pares School Internet Program
Source: Washington Post (Sat. 6/13/98 - D1,D2)
http://search.washingtonpost.com/wp-srv/WPlate/1998-06/13/045l-061398-id...
Author: Mike Mills
Issue: E-Rate
Description: In an effort to reject calls from Congress and consumer groups
to kill the e-rate program to wire schools and libraries to the Internet,
the Federal Communications Commission voted on Friday to instead cut the
program's funding from its previous level of $2.3 billion to $1.3 billion.
The FCC also reduced the salary of the program's administrator and is
targeting the remaining funds to the poorest schools and libraries. In an
interview, FCC Chairman William Kennard said that stopping the e-rate
program completely was not an option he would consider. He said: "The
fundamental issue is, can we as a nation afford to make this investment? We
can't afford not to." Chairman Kennard also said that while 78 percent of
schools
have access to the Internet, the access is usually just through one
joint-use computer, adding that only 27 percent of schools have at least one
classroom wired individually to the Internet.

Title: Services Eligible for Discounts to Schools and Libraries
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da981110.html
Issue: Universal Service
Description: "On May 8, 1997, the Federal Communications Commission
(Commission) released a Report and Order on Universal Service (Universal
Service Order). In the Universal Service Order, the Commission determined
that all eligible schools and libraries should receive discounts on all
telecommunications services, Internet access, and internal connections
provided by telecommunications carriers, as well as on Internet access and
internal connections provided by non-telecommunications carriers. The Common
Carrier Bureau (Bureau) reiterates that schools and libraries are not
eligible to receive support for services or equipment that do not qualify as
telecommunications services, Internet access, or internal connections.
Personal computers, fax machines, and modems, for example, are not eligible
for universal service support discounts. The Bureau also emphasizes that no
universal support will be provided for asbestos removal, teacher training,
telephone handsets, the costs of tearing down walls to install wiring,
repairing carpets, or repainting...."

Title: FCC Reforms Universal Service Support Mechanism for
Schools and Libraries
Source: FCC
http://www.fcc.gov
Issue: Universal Service
Description: "The Commission has modified the mechanism by which schools and
libraries will
receive discounts on communications services. In an Order adopted [Friday], the
Commission revised the funding year for the schools and libraries support
mechanism;
froze the amount of funding at current rates; revised the disbursement rules
to ensure that
the most disadvantaged schools and libraries get priority for support; and
made other
administrative changes consistent with the intent of Congress...." [Full
text of press release will be posted to this list today.]

** Internet: Policy & Users **

Title: Family Sues Library for Not Restricting Children's Internet Access
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/06/cyber/articles/14library.html
Author: Pamela Mendels
Issue: Libraries
Description: A Livermore, California library is being sued because a young
patron downloaded sexually graphic images from its computers. "The library
is violating its basic duty to the community: to provide a safe place to
acquire knowledge," said Michael D. Millen, the lawyer who filed the suit.
In a letter to the city, Mr. Millen suggested filtering software as a
solution. "There is no effective way of screening the Internet without
interfering with First Amendment rights," said Daniel G. Sodergren, the
assistant city attorney for Livermore. "Filters take out material protected
by the First Amendment." Mendels reports, "the suit suggests that American
public libraries are now between a legal rock and a hard place, as some
patrons demand filters while others ask the courts to ban them. Late last
year, in a federal case that could be seen as the mirror opposite of the
Livermore suit, the Loudoun County [VA] public library system was sued by
some patrons for providing only filtered access to the Internet. That case
is still pending, but the anti-filtering forces have won an important
preliminary court victory."

Title: Critics Contend U.S. Policy On the Internet Has 2 Big Flaws
Source: New York Times
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/15clinton.html
Author: Jeri Clausing
Issue: Electronic Commerce
Description: Critics of the Clinton Administration say that two unresolved
issues may slow the growth of Internet commerce: privacy and encryption.
"The whole area of e-commerce is going to come unglued unless we solve the
crypto policy, unless we resolve the privacy issue," said David Farber, a
professor of computer science at the University of Pennsylvania and a board
member of the Electronic Frontier Foundation. Ira Magaziner, the
Administration's top Internet policy adviser, says that there has been a lot
of success in meeting the President's one-year old framework for a tax-free,
self-regulated digital marketplace: international accords and pending
domestic legislation to keep the Internet a tax-free zone, development of a
self-governing and competitive domain name system, and a treaty on digital
copyrights in cyberspace. See "A 13-Step Internet Program"
http://www.nytimes.com/library/tech/98/06/biztech/articles/15clinton-side.h
tml, an overview and status report on the Administration's proposals and
goals for promoting electronic commerce.

Title: Wielding Mouse and Modem, Elderly Remain in the Loop
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/national/regional/ny-elderly-compute.
html
Author: Jane Gross
Issue: Seniors & the Net
Description: Gross reports, "Americans old enough to be the typical hacker's
grandparents are clamoring for computer instruction in community centers,
colleges and libraries across America." Modern Maturity magazine is planning
its first technology issue for November and retirement communities are
installing high-speed modems to try to lure the next generation of
residents. The motivation for seniors to get online appears to be keeping in
touch with distant children and grandchildren, but, for some, it is a desire
to understand and contribute when someone talks about the Microsoft
antitrust case of kids & porn on the web. "When people talk, I want to know
what they're talking about," said Carmela Trapasso, 83. "Otherwise, you're
lost in your own world, one of those people saying, 'We used to do this and
we used to do that."'

** The Future of American Broadcasting **

Title: Just Talking: Public Broadcasting
Source: New York Times (C7)
http://www.nytimes.com/yr/mo/day/news/financial/media-talk.html
Author: Lawrie Mifflin
Issue: Public Broadcasting
Description: For about a year, House Telecommunications Subcommittee
Chairman Billy Tauzin (R-LA) has been floating the idea of trust fund for
public broadcasting. The proposed bill, co-sponsored by Subcommittee Ranking
Member Ed Markey (D-MA), has attracted little response. Rep Tauzin was
expected to announce the introduction of the bill to the House during an
address at the Public Broadcasting Service's annual meeting today. A staff
member indicated that Rep Tauzin's bill will now call for a nine-member
"blue-ribbon committee" to study the future of public broadcasting --
including the trust fund idea. For now, Rep Tauzin is proposing increased
Federal funding to help public television convert to digital.

Title: PIAC Meeting Transcript
Source: NTIA
http://www.ntia.doc.gov/pubintadvcom/junemtg/
Issue: Digital Television
Description: A transcript of the June 8 meeting of the Advisory Committee on
Public Interest Obligations of Digital Television Broadcasters is now
available. [For a summary of the meeting, see
http://www.benton.org/Policy/TV/meeting6.html]

** Antitrust **

Title: Most Approve Of Microsoft, A Poll Shows
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/06/biztech/articles/15microsoft.html
Author: Steve Lohr w/Marjorie Connelly
Issue: Antitrust
Description: A majority of Americans believe that Microsoft is a monopoly
that should be investigated by the Department of Justice. The case presented
by the DOJ, however, has not tarnished Microsoft's reputation as a good
business that makes quality products. "Bill Gates has made an enormous
contribution to this nation's economy, creating jobs and wealth," said
Richard Denoyer, a 65-year-old education consultant in Evendale, Ohio. "But
you've got to give others a real chance to participate in these high-tech
markets as well. And it's the Government's responsibility to check things
out, to make sure that Microsoft is playing by the rules." For the poll
results see
http://www.nytimes.com/library/tech/98/06/biztech/articles/15microsoft.1.GI
F.html.
*********

Communications-related Headlines for 6/12/98

Universal Service -- E-Rate
Keep Internet Funding for Schools (NYT)
FCC Clarifies What Services Are Eligible For
E-Rate Discounts (TelecomAM)
Tauzin Gathers Support for Using Excise Tax to
Fund E-Rate (TelecomAM)

Long Distance
FCC Sets Procedure to Review Long Distance Marketing
Alliances (TelecomAM)
FCC Releases Report on Long Distance Market (TelecomAM)

Internet
Web Lovers Love TV, Often Watch Both (WSJ)
Investigating Grand Juries on the Web (CyberTimes)
Instant Messaging; A New Source of Spam, but Not as
Widespread(CyberTimes)

Mergers
Cable & Wireless Sues to Force MCI Internet Sale (TelecomAM)
MCI May Be Selling More Assets; Cable & Wireless Sues (WP)
MCI Offers to Sell Assets to Speed Deal (WSJ)

Television
Murdoch, Malone to Put TV Guide on Cable (WSJ)
Murdoch Sells TV Guide to an Affiliate of TCI (WP)
Murdoch Sets TV Guide Sale For $2 Billion (NYT)
Consumers Can Buy Cable Boxes in Stores In 2000,
FCC Decides (WSJ)
"Navigation Devices" Rules Create Consumer Market
for Set Top Boxes (FCC)

Spectrum
Spectrum Auctions Conference (FCC)

Privacy
Sailor Victorious in Gay Case on On-Line Privacy (NYT)

Journalism
Magazine Inquiry on a Writer Finds Fabricated Work (NYT)

** Universal Service -- E-Rate **

Title: Keep Internet Funding for Schools
Source: New York Times (A22)
http://www.nytimes.com/yr/mo/day/editorial/12fri3.html
Author: NYT Editorial Staff
Issue: Universal Service
Description: At a time when the Internet is becoming increasing important
for commerce and education, the government should be redoubling efforts to
connect disadvantaged communities. Instead, some in Congress would rather
kill the e-rate program. More than 30,000 schools nd libraries have applied
for $2.02 billion in telecommunications discounts; only $625 million has
been collected to support th program. "The e-rate program is a public
obligation that the carriers agreed to and are required to finance under the
1996 law because they stand to reap enormous financial benefits from
deregulation. Access charges that long-distance companies pay to local phone
companies have been cut significantly as a direct result of the 1996 act.
Should the F.C.C. decide to trim the program, it will be capitulating to
company greed at the expense of communities all over the country."

Title: FCC Clarifies What Services Are Eligible For E-Rate Discounts
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: As opponents claim that e-rate funds may be used for unintended
purposes, the FCC has clarified what services are eligible for support.
Schools and libraries may receive discounts on telecom services, Internet
access or internal connections. Personal
computers, fax machines and modems, for example, are not eligible for
discounts. The Commission also "emphasize[d] that no universal service
support will be provided for asbestos removal, teacher training, telephone
handsets, the costs of tearing down walls to install wiring, repairing
carpets, or repainting." Commissioner Harold Furchtgott-Roth asked "If there
were not widespread questions and confusion on the part of Congressional
leaders, school applicants and the public, then why would such a
clarification or reiteration be necessary?" He asked that the program be put
on temporary hold. Congressional support has come from Senate Democratic
Leader Tom Daschle (D-SD), 34 Democratic senators who co-signed a letter
from Sens. Jay Rockefeller (D-WV) and Bob Kerrey (D-NE), the Congressional
Hispanic Caucus, and others.

Title: Tauzin Gathers Support for Using Excise Tax to Fund E-Rate
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: House Telecom Subcommittee Chairman Billy Tauzin (R-LA) is
asking fellow Members of Congress to support a bill that would cut the $4.5
billion phone excise tax in half and use the funds to support the e-rate
program. Rep Tauzin had co-sponsored a bill (HR-3848) that would have
eliminated the tax entirely.

** Long Distance **

Title: FCC Sets Procedure to Review Long Distance Marketing Alliances
FCC Releases Report on Long Distance Market
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: US West and Ameritech have entered long distance marketing
agreements with Qwest Communications. Other long distance carriers and new
local phone entrants argue that the arrangements violate the Telecom Act's
restrictions on the Bell companies entry into the long distance market. The
FCC announced how it will handle a review of the matter June 10. After
opponents file complaints with the FCC, US West and Ameritech will have 10
days to respond. Opponents then will have three days to rebut. Also, a new
report from the FCC says that AT&T's share of long distance revenues dropped
to 44 percent last year from 47.9 percent in 1996 and 90 percent in 1984.
MCI has a 19% share, Sprint 10%, and WorldCom 7%. TelecomAM writes, "The FCC
did not break out the percentages for other carriers, but the next largest
long distance companies based on revenue were Excel, Frontier, LCI and Cable
& Wireless, all with revenues exceeding $1 billion."

** Internet **

Title: Web Lovers Love TV, Often Watch Both
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Eben Shapiro
Issue: Old vs New Media
Description: As television executives fret over the whether the Internet
will steal away a generation of young viewers, internal research conducted
at ABC over the past several months suggests that the networks' concern
should not necessarily rest with the World Wide Web. It seems that viewers
are turning into "headbobbers," glancing back and forth between their
computers and TV sets. "Our first reaction was, 'Wait -- this can't be
right,'" says Steve Burke, who recently resigned as president of ABC
Broadcasting to take a job at Comcast, one of the nation's largest cable
companies. "At this point, the Internet is not, in fact, cannibalizing
network viewership," he says. Cable networks remain the main culprits in
declining network viewership." It appears that cable companies are reaching
similar conclusions. A study conducted by Viacom's MTV Networks of 25,000
viewers found that young people are spending more time on PCs but no less
time watching television.

Title: Investigating Grand Juries on the Web
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/06/cyber/cyberlaw/12law.html
Author: Carl S. Kaplan
Issue: Internet Content
Description: At a time when grand juries have been increasingly in the news,
a new site on the Web called Federal Grand Jury has been created to help the
general public better understand what grand juries are and what they do. The
site was put up last October by Susan W. Brenner, a professor at the Univ.
of Dayton School of Law and an expert on grand juries and criminal
procedure, and Gregory G. Lockhart, a federal prosecutor who teaches part
time at the law school. To learn more, you can access the site at:
http://www.udayton.edu/~grandjur/

Title: Instant Messaging; A New Source of Spam, but Not as Widespread
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/06/cyber/articles/12spam.html
Author: Matt Richtel
Issue: Online Communication
Description: A new form of online communication, called instant messaging is
beginning to rapidly spread. Instant messaging is more immediate than email,
using technology that allows users to send messages to someone else online
that pop up immediately on the recipient's screen. As it gains in
popularity, it is bound to increase the amount of unsolicited messages, or
spam, received by subscribers to this type of online communication.

** Mergers **

Title: Cable & Wireless Sues to Force MCI Internet Sale
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: In a surprising action, Cable & Wireless has filed a suit "to
require MCI to
comply with its agreement to sell its Internet backbone service" to the
British company. MCI agreed to sell its Internet backbone services to Cable
& Wireless for $625 million in a
move intended to ease antitrust approval for its merger with WorldCom. Cable
& Wireless spokesman Tom Smellie said the suit is not intended to force MCI
to sell its Internet business regardless of whether the merger is completed.

Title: MCI May Be Selling More Assets; Cable & Wireless Sues
Source: Washington Post (F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/12/081l-061298-idx.html
Author: Mike Mills
Issue: Mergers
Description: In late May, MCI Communications agreed to sell its Internet
"backbone" facilities to Cable & Wireless. Now, in response to statements
made by European Commission officials and other critics, MCI is considering
selling its Internet service business, including a huge list of customers,
to a company besides London-based Cable & Wireless. If MCI does so, it could
upset its deal with Cable and Wireless, as the company had been counting on
MCI customers leasing the Internet facilities that it would be buying. On
Wednesday Cable & Wireless filed suit in federal court in Washington DC,
contending that MCI is violating a "no shopping" clause in their deal by
"seeking other buyers for those Internet assets and other parts of MCI's
Internet business." If MCI does sell its Internet facilities and customers
to a new buyer, it would have to pay Cable & Wireless a $25 million breakup fee.

Title: MCI Offers to Sell Assets to Speed Deal
Source: Wall Street Journal (A3,A4)
http://wsj.com/
Author: Jared Sandberg & John R. Wilke
Issue: Mergers
Description: MCI Communications met with Joel Klein, Justice Dept. antitrust
chief, and offered to sell additional MCI Internet assets in a continued
effort to accelerate U.S. approval of Worldcom's $37 billion purchase of
MCI. According to lawyers close to the talks, senior Justice Dept. officials
told MCI Chairman, Bert C. Roberts, that they would probably approve the
merger if both companies agreed to sell either WorldCom's or MCI's entire
Internet businesses.

** Television **

Title: Murdoch, Malone to Put TV Guide on Cable
Source: Washington Post (F2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/12/090l-061298-idx.html
Author: Steven Ginsberg
Issue: Television/Media
Description: Television executives John C. Malone and Rupert Murdoch "joined
forces" yesterday to offer TV Guide magazine to viewers on-screen and
on-line. Malone's Prevue Channel will be "rebranded" as a TV Guide channel
and will offer extensive scrolling listings for programs on broadcast, cable
and satellite systems, and large amounts of advertising. Murdoch's News
Corp., the current owner, will sell the magazine to United Video Satellite
Group, owned by Malone's Tele-Communications Inc. for $2 billion, 40 percent
of United Video and half the votes on its board. "What we're really doing,"
said Peter Boylan, president of United Video, "is trying to create a new
media company that marries the TV Guide print expertise with United Video's
interactive expertise. It will create a ubiquitous product to help TV
viewers navigate an increasingly cluttered screen...The theory is to create
a new media company that has never been seen before. We'll have the ability
to sell an ad around the world to different cultures and in different
languages." Once the deal is complete, TV Guide will be "splashed across"
five different entities -- TV Guide magazine, TV Guide channel, TV Guide
International, TV Guide online, and TV Guide interactive.

Title: Murdoch Sells TV Guide to an Affiliate of TCI
Source: Wall Street Journal (B1,B8)
http://wsj.com/
Author: Eben Shapiro & John Lippman
Issue: Television/Media
Description: United Video Satellite Group Inc., owner of the Prevue Channel
and controlled by John Malone's Tele-Communications Inc., agreed to purchase
TV Guide from Rupert Murdoch's News Corp. for $2 billion in cash and stock.
The new owner plans to make TV Guide's program information available to
consumers via the television and the Internet. "This marks the point that TV
Guide is no longer just a magazine but a multiplatform juggernaut," said
Anthea Disney, chief executive of News America Publishing Group, a News
Corp. unit. The deal "underscores the complex relationship between three
chief executives at the top of the converging world's of media and
technology. Mr. Murdoch, TCI's John Malone and Microsoft Corp.'s Bill Gates.
Mr. Gates has also identified electronic listings as a crucial service to
provide consumers in the converging age of television and computers."

Title: Murdoch Sets TV Guide Sale For $2 Billion
Source: New York Times (C1)
http://www.nytimes.com/yr/mo/day/news/financial/united-tv-guide.html
Author: Geraldine Fabrikant
Issue: Television/Publishing
Description: News Corp will sell TV Guide to United Video Satellite Group
for $2 billion in cash and stock. The deal will end News Corp's ten-year
control of TV Guide. Many had thought that Rupert Murdoch had paid too much
for TV Guide and other magazines in a buying frenzy ten years ago -- he
acknowledged as much years later. Mr. Murdoch's American magazine empire has
now dwindled to The Weekly Standard, a conservative opinion publication with
a circulation of 55,000. At one time, News Corp controlled New York
magazine, European Travel & Life, Mirabella, and a half stake in Elle.
United Video Satellite Group is owned by two companies that are controlled
by TCI, the nation's largest cable operation.

Title: Consumers Can Buy Cable Boxes in Stores In 2000, FCC Decides
Source: Wall Street Journal (B6)
http://wsj.com/
Author: The Associated Press
Issue: Cable
Description: The Federal Communications Commission adopted rules yesterday
that will make it possible for consumers to purchase cable-TV boxes that
will work on any cable system beginning in July 2000. Cable customers will
still be able to rent boxes from cable TV systems under the new rules.

Title: "Navigation Devices" Rules Create Consumer Market for Set Top Boxes
Source: FCC
http://www.fcc.gov/Bureaus/Cable/News_Releases/1998/nrcb8013.html
Issue: Cable/Set-top Boxes
Description: The FCC adopted rules providing for the commercial availability
of set top boxes and other consumer equipment used to receive video signals
and other services. In the Telecommunications Act of 1996, Congress directed
the FCC to create rules that would allow consumers to obtain "navigation
devices" -- meaning the set top boxes, remote control units and other
equipment -- from commercial sources other than the service provider. This
order will benefit consumers and further the Commission's goal of providing
competition in the telecommunications marketplace by creating a major market
for consumers to own equipment used to access video programming and other
services in their homes.

** Spectrum **

Title: Spectrum Auctions Conference
Source: FCC
http://www.fcc.gov/Bureaus/Miscellaneous/Public_Notices/1998/pnmc8035.html
Issue: Spectrum/Auctions
Description: The FCC's Office of Communications Business Opportunities
(OCBO), and Wireless Telecommunications Bureau (WTB) will host a free
conference titled "Auctions '98" on Wednesday, June 24, 1998, from 8:30 a.m.
until 5:30 p.m., at the International Trade Center in the new Ronald Reagan
Building, 1300 Pennsylvania Avenue, N.W., Washington DC. This one-day
conference is designed to inform potential participants and investors about
services proposed for auction by the FCC in the coming year. Topics to be
discussed include 800 MHz Specialized Mobile Radio (lower 80 and general
category channels), 220 MHz, Paging, 39 GHz, Location Monitoring Services,
Public Coast Stations, broadcast opportunities, and the reauction of
FCC-held licenses from prior auctions. There will also be panels on
financing and contracting.

** Privacy **

Title: Sailor Victorious in Gay Case on On-Line Privacy
Source: New York Times (A1)
http://www.nytimes.com/library/tech/yr/mo/cyber/articles/12navy.html
Author: Philip Shenon
Issue: Privacy
Description: Master Chief Petty Officer Timothy McVeigh (no, not the OK
bomber) will retire from the Navy with full benefits with damages paid by
America Online. AOL had cooperated with Navy investigators to identify "Tim"
with the email address "Boysrch" as Mr. McVeigh. The Navy will also pay Mr.
McVeigh's legal fees. In an online post, Mr. McVeigh has identified his
marital status as "gay." AOL also announced new privacy policies. [Gay case?
Who writes this stuff?]

** Journalism **

Title: Magazine Inquiry on a Writer Finds Fabricated Work
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/national/magazine-fabrication.html
Author: Robin Pogren
Issue: Journalism
Description: An internal investigation at The New Republic has found that
writer Stephen Glass made up part or all of more than half of the 41
articles wrote for the magazine. Details of the falsifications will be
available in an editor's note due on newstands today. [See also NYT (A18),
"Magazines Split on Need for Fact-Checkers on Articles" by Doreen Carvajal
http://www.nytimes.com/yr/mo/day/news/national/magazine-checkers.html]
*********
...and we are outta here. We'll be back with a full week of Headlines on Monday.

Communications-related Headlines for 6/11/98

[Sorry, No Wall Street Journal Coverage Today]

Universal Service: The E-Rate Battle Continues
Cuts Possible in On-Line Plan For U.S. Schools
and Libraries (NYT)
FCC Caught in Middle on Rate Rise (WP)
FCC chief agrees to re-examine slow Internet
subsidies to schools (ChiTrib)
Kennard Promises to Make E-Rate Changes This Week
(TelecomAM)

Privacy
For Sale on the Web: Your Financial Secrets (WP)

Art and Technology
Web Photo Project Asks Viewers to Define Art (CyberTimes)

** Universal Service: The E-Rate Battle Continues **

Title: Cuts Possible in On-Line Plan For U.S. Schools and Libraries
Source: New York Times (A22)
http://www.nytimes.com/library/tech/98/06/biztech/articles/11fcc.html
Author: Seth Schiesel
Issue: Universal Service
Description: Facing Congressional pressure, Federal Communications
Commission Chairman Bill Kennard is working on plans to scale back the
e-rate program to provide telecommunications discounts to schools and
libraries. Approximately 300,000 schools and libraries have applied for $2
billion in discounts under the program; although $625 million have been
collected so far, no funds have been disbursed. Chairman Kennard is offering
a plan that would give the program $2.3 billion over 18 months instead of
the $2.25 billion per year as originally planned.The FCC has set Friday as
the deadline to act of the program's budget
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da981094.wp.
[See Chairman Kennard's statement before the Senate Communications
Subcommittee http://www.fcc.gov/Speeches/Kennard/Statements/stwek843.html]

Title: FCC Caught in Middle on Rate Rise
Source: Washington Post C3
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/11/165l-061198-idx.html
Author: Mike Mills
Issue: Universal Service
Description: "People need lower phone rates. Schools and libraries deserve
discounts. The FCC must deliver both," demanded Rep. Thomas J. Bliley Jr.
(R-VA), who wields control over the FCC's funding. The FCC is facing
pressure from Congress to end the program to help wire schools and libraries
to the Internet. The White House and AT&T are promoting a plan to bill
consumers a flat fee of "less than $1" to pay for it, rather than the 5
percent charge. "Do what is necessary to fix this defective program, and do
it quickly," said Senate Commerce Chairman John McCain (R-AZ).

Title: FCC chief agrees to re-examine slow Internet subsidies to schools
Source: Chicago Tribune (Sec 1, p.10)
http://chicago.tribune.com/news/nationworld/article/0,1051,SAV-9806110255,0
0.html
Author: Matt Berger
Issue: Universal Service
Description: FCC Chairman Bill Kennard has vowed to slow, but not abandon
the erate program. "I submit that the best thing we can do, in the best
interest of this program and the public, is to proceed ahead prudently,"
Kennard said in testimony to the communications subcommittee of the Senate
Commerce Committee. "This program is important to the future of America."
The Administration is pressuring the FCC to continue the program. "The
president and vice president cannot tell you what to do," Sen. Ted Stevens
(R-Alaska) told Chairman Kennard and four other FCC commissioners appearing
before the subcommittee. "I urge you to read the law. It does not say you
have to hook up every school by the year 2000." Chicago Public Schools are
hoping for $47 million from the program, according to Estelle Maajid, CPS's
e-rate manager.

Title: Kennard Promises to Make E-Rate Changes This Week
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: Testifying before the Senate Communications Subcommittee, FCC
Chairman promised changes to the e-rate program: 1) Make certain that the
poorest schools get first priority; 2) Extend the plan's fiscal year to
match school-year calendars; 3) Consolidate the administration of the
programs; and 4) Cut the $200,000 salary of Schools & Libraries Corporation
President Ira Fishman to about $150,000. Chairman Kennard said: "I want to
take this issue [Fishman's salary] off the table." He also said the 14
people who run the program are not a "bloated" bureaucracy as some have
charged. TelecomAM writes, "Sens. Snowe and Rockefeller carried the defense
of the program, with Snowe noting that the e-rate was passed after months of
consideration and that start-up problems should be expected. Those problems,
she said, should not become "a ruse for dismantling this program."
Rockefeller said the industry made a deal in the Act to wire schools and
cannot "walk away" from it."

** Privacy **

Title: For Sale on the Web: Your Financial Secrets
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/11/155l-061198-idx.html
Author: Robert O'Harrow Jr.
Issue: Privacy
Description: Personal bank account and investment information is becoming a
hot commodity online. "The ability of brokers to root out such information
has alarmed some banking officials, law enforcement authorities and privacy
specialists, who say almost anyone with a few hundred dollars can buy
confidential financial information about another individual." Online ads
offer to find this information for as little as $100.

** Art and Technology**

Title: Web Photo Project Asks Viewers to Define Art
Source: New York Times
http://www.nytimes.com/library/tech/98/06/cyber/artsatlarge/#1
Issue: Arts on the Web
Description: To Louise Lawlor, context and perspective are everything. A
New York-based visual artist, Lawlor's work demands that viewers recognize
the role of subjective and situational elements in defining meaning in art.
Her most recent Web-exhibit, "Without Moving/Without Stopping,"
(http://www.stadiumweb.com/without_moving/without_stopping/) is composed of
a series of three 360-degree panoramic photographs that can be followed in
a circle. Launched today on the arts-exhibition site Stadium
(http://www.stadiumweb.com/), Lawlor's user-navigable work takes the viewer
to the cluttered and utterly chaotic halls of the Museum fur Abgusse
klassischer Bildwerke
(http://server.StMUKWK.bayern.de/kunst/museen/abguss.html) in Munich.
Founded in 1869 by a professor of archaeology, the museum houses more than
1600 replicas of Greek and Roman statues (the originals reside in museums
around the globe). While the viewer's experience will be circumscribed by
conventional technological and environmental limitations (monitor size,
room ambience), Lawlor minimizes the importance of these elements, "The
computer keeps you connected -- in a different way than even a book does --
because you're waiting for something to happen."
*********

Communications-related Headlines for 6/10/98

Universal Service
Gore and Administration Officials Rally Around
E-Rate Program (TelecomAM)
Schools Internet subsidy putting FCC in a crossfire
(ChiTrib)
Should We Wire Schools? (WP)
FCC to Hold Open Commission Meeting Thursday,
June 11, 1998 (FCC)

Libraries
Bits-per-Gallon: Bookmobiles Now Offer Internet Access
(CyberTimes)

Mergers
California Lawmakers Want Close Review of SBC-Ameritech Merger
(TelecomAM)
Antitrust Review May Scuttle MCI Deal (WSJ)

Old vs New Media
NBC Stakes Out An Entry Point Onto the Web (WSJ)
NBC Buying A Portal To the Internet (NYT)

Encryption
U.S. and Industry Discuss Data Encryption (NYT)

** Universal Service **

Title: Gore and Administration Officials Rally Around E-Rate Program
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: After hearing Speaker Newt Gingrich (R-GA) say he would end the
program within two weeks, Vice President Gore and other Clinton
Administration officials are being to pressure the Federal Communications
Commission to protect the "e-rate" program. The Vice President said in a
statement that ending the e-rate would "close the door to our children's
future. This is something America cannot afford to do." In a letter to the
FCC, Education
Secretary Richard Riley, Commerce Secretary William Daley, Agriculture
Secretary
Daniel Glickman and Health and Human Services Secretary Donna Shalala wrote
that the e-rate's
benefits are "profound. For the very first time, a child in the most
isolated inner city or rural town can have access to the same universe of
knowledge as a child in the most affluent suburb... To claim that America
cannot afford to make this investment is absurd." They added that its costs
have been "more than offset" by other reductions. Letters being circulated
by Rep. Bobby Rush (D-IL), Sen. Pat Murray (D-WA), and Sen. Ted Kennedy
(D-MA) are urging the President to come out in support of the e-rate and for
the FCC to protect the program. The Senate Communications Subcommittee will
hold a hearing on the e-rate June 10 at 9:30am.

Title: Schools Internet subsidy putting FCC in a crossfire
Source: Chicago Tribune (Sec 1 p. 14)
http://chicago.tribune.com/news/nationworld/article/0,1051,SAV-9806100234,0
0.html
Author: Matt Berger
Issue: Universal Service
Description: The FCC is being pulled in opposite directions as Members of
Congress on one hand and the Clinton Administration on the other battle over
the future of the e-rate program. Members of Congress are saying the program
should be scrapped; the Administration is trying to protect the new program
that has not dispersed any funds yet. Lynne Bradley of the American Library
Association said the telecommunication industry is pitting consumers against
their own children: "Kids shouldn't be held hostage and this program
shouldn't be held hostage. This is a price consumers are willing to pay."
FCC officials have to the end of the week to decide the fate of the program.

Title: Should We Wire Schools?
Source: Washington Post (A24)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/10/031l-061098-idx.html
Author: WP Editorial Staff
Issue: Universal Service
Description: The "e-rate" program to provide telecommunications discounts to
schools and libraries is coming under a great deal of pressure. Telephone
companies are adding information on customers' bills showing how much
consumers contribute to universal service fund. Although the fees consumers
pay goes mostly to keeping rural rates low (an old and popular program),
because it is new, the schools and libraries program is the one taking the
heat. "...spelling out a long-hidden subsidy also exposes it to political
debate. Such debate need not doom the e-rate, which pulls considerable
support in opinion polls, any more than it is likely to doom the popular
rural subsidies. Nor should it. Squelching it would be the real "stealth" move."

Title: FCC to Hold Open Commission Meeting Thursday, June 11, 1998
Source: FCC
http://www.fcc.gov/Bureaus/Miscellaneous/Public_Notices/Agenda/1998/ag98061
1.html
http://www.fcc.gov/Bureaus/Miscellaneous/Public_Notices/Agenda/1998/agb8061
1.html
Issue: Universal Service
Description: The Federal Communications Commission will hold an Open Meeting
on Thursday, June 11, 1998, which is scheduled to commence at 9:30 a.m. in
Room 856, at 1919 M Street, N.W., Washington, D.C. Added to the agenda, the
Commission will consider action concerning proposals to ensure the accuracy
and completeness of billing disclosures made by telecommunications carriers.
The Commission will consider action concerning the collection levels for the
schools and libraries and rural health care universal service support
mechanisms for the third and fourth quarters of 1998. Finally, the
Commission will consider
action concerning issues related to local exchange carrier recovery of
universal service contribution obligations. The audio portion of the meeting
will be available at http://www.fcc.gov/realaudio/.

** Libraries **

Title: Bits-per-Gallon: Bookmobiles Now Offer Internet Access
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/06/cyber/articles/10bookmobile.html
Author: Pamela Mendels
Issue: Libraries
Description: A small but growing number of bookmobiles, those
libraries-on-wheels, are starting to offer Internet access. "Essentially the
same sort of services provided in the library, bookmobiles are trying to
provide on the road," said Bernard F. Vavrek, a professor of library science
at Clarion University in Clarion, Pa., and director of the Center for the
Study of Rural Librarianship
http://vaxa.clarion.edu/~grads/csrl/csrlhom.htm. Approximately 900 library
systems around the country use bookmobiles to reach patrons; probably less
than 100 of them offer mobile Internet access. Providing the service
connects remote patrons with the catalog of the library and exposes them to
the global computer network.

** Mergers **

Title: California Lawmakers Want Close Review of SBC-Ameritech Merger
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: In a letter from California state legislators to the Department
of Justice and the FCC, the lawmakers asked for a close review of the
proposed SBC-Ameritech merger because of "major increase in customer
complaints" since the SBC-PacTel merger and the state's Office of Ratepayer
Advocate "has reported aggressive efforts to charge consumers more for
services." "These reports raise concerns about the effects further mergers
may have on competition and on customer service."

Title: Antitrust Review May Scuttle MCI Deal
Source: Wall Street Journal, B10
http://wsj.com
Author: John J. Keller & Julie Wolf
Issue: Mergers
Description: The hard-line antitrust review of WorldCom Inc's $37 billion
purchase of MCI Communications Corp could scuttle the deal if WorldCom must
sell its Internet business, UUNet Technologies, to close the deal. A
European Union antitrust commission is concerned that the merged company
would have too strong a position in operating the Internet backbone (run by
UUNet). Apparently MCI's promise to sell its own Internet backbone service
may not be enough to assuage concerns. But WorldCom has no interest in
selling UUNet. "The deal's off in that case," according to an executive
close to both companies.

** Old vs New Media **

Title: NBC Stakes Out An Entry Point Onto the Web
Source: Wall Street Journal, B1, B8
http://wsj.com
Author: Kyle Pope & Kara Swisher
Issue: Old vs New Media
Description: Seeking a toe-hold in the battle to dominate the Web, NBC (a
unit of General Electric) is buying a stake in the online news company
CNET, Inc, intending to take control of its Snap! directory service in a
bid to compete with such sites as Yahoo! This marks the first time a
broadcast network has made a bet in the feverish race to create an
entry-point to the Web. NBC execs see this investment as the beginning of
what could be a massive Internet commitment for the network. "Over time,
the Internet and the computer and the television are going to come
together," said NBC executive VP Tom Rogers. NBC and CNet executives insist
that this deal is completely separate from NBC's relationship with the
NBC/Microsoft MSNBC cable news channel.

Title: NBC Buying A Portal To the Internet
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/06/biztech/articles/10cnet.html
Author: Saul Hansell
Issue: Old vs New Media
Description: NBC announced it will buy a 5% controlling stake in Snap, a
Internet search and directory service. Portals like Snap are emerging as
profitable online services as they charge large fees to WWW sites that want
to be listed in the directories. The deal could be worth as much as $39
million and represents a broadcast network's first foray into this new commerce.

** Encryption **

Title: U.S. and Industry Discuss Data Encryption
Source: New York Times (C5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/10encrypt.html
Author: Jeri Clausing
Issue: Encryption
Description: Leading computer executives -- including Bill Gates -- met with
Attorney General Janet Reno and the director of the FBI to discuss
disagreements about export restrictions on encryption technology. "The
presence of industry leaders encourages us now to redouble our efforts with
industry," said a White House official who spoke on the condition of
anonymity. "Without a solution, we risk losing our lead in this important
technology." Any agreement "must include further real relaxation in export
controls," the official said, adding: "We are still discussing exactly what
those relaxations should be. That's the $64,000 question."

*********

Communications-related Headlines for 6/5/98

[There will be no Headlines Mon & Tue 6/8-6/9. We'll be back Wed 6/10]

Universal Service
FCC May Suspend Internet Program (WP)
FCC Cancels Special Universal Service Meeting
But Still May Act (TelecomAM)

Mergers
Europe Official Cites Concern On Worldcom-MCI Merger
(NYT)

Privacy
White House Is Urged to Protect Privacy of Internet Users
(NYT)

** Universal Service **

Title: FCC May Suspend Internet Program
Source: Washington Post (D1)
http://www.washingtonpost.com/wp-srv/WPcap/1998-06/05/051r-060598-idx.html
Author: Mike Mills
Issue: Universal Service
Description: The Federal Communications Commission may suspend the new
program to provide discounts on telecommunications services for schools and
libraries due to pressure from Congress. Long distance telephone service
companies are adding new fees to customers bills and this has angered
Members of Congress. The long distance carriers say they have to in order to
recoup money they are paying into the universal service fund. Most of these
monies go to lower phone bills for rural and low-income customers, not the
"e-rate" program. The FCC contends that the reduction in access charges
should offset the fees long distance carriers pay for universal service. The
agency "should immediately suspend further collection of funding for its
schools and libraries program," said a letter signed by some of the leading
lawmakers on telecommunications policy -- Rep. John D. Dingell (D-MI), Rep.
Thomas J. Bliley Jr. (R-VA), Sen. John McCain (R-AZ) and Sen. Ernest F.
Hollings (D-SC). "We believe it is too late for the commission to rescue
itself merely by tinkering with a fundamentally flawed and legally suspect
program." [See also WSJ (B8) "Four Legislators Ask FCC To End Internet Program"]

Title: FCC Cancels Special Universal Service Meeting But Still May Act
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The FCC has canceled its June 9 open meeting on universal
service -- most likely due to pressure from Members of Congress. Senate
Communications Subcommittee Chairman Conrad Burns (R-MT) will hold a hearing
June 10 on FCC reauthorization legislation. FCC commissioners may still act
to shift the collection of universal service fees from long distance
providers to local exchange carriers. In a joint letter, Rep. John D.
Dingell (D-MI), Rep. Thomas J. Bliley Jr. (R-VA), Sen. John McCain (R-AZ)
and Sen. Ernest F. Hollings (D-SC) wrote that the Commission has "ignored
Congress's clear priorities with regard to universal service" of maintaining
local rates at affordable levels while giving discounted rates to schools
and libraries.

** Mergers **

Title: Europe Official Cites Concern On Worldcom-MCI Merger
Source: New York Times (C2)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/05mci.html
Author: Seth Schiesel
Issue: Mergers
Description: Karel van Miert, the European Union's competition commissioner,
says MCI's sale of part od its Internet service may not be enough to win
approval of the proposed merger with WorldCom. "I'm not sure that what has
been offered will be good enough," Van Miert said at a news conference in
Washington. "I even have some doubts." "Van Miert's comments today clearly
indicate that MCI's recent attempt to create the appearance of a divestiture
through partial sale of some minor Internet assets are not going to fool the
EC," said Bob Bishop, a GTE spokesman. GTE is trying to block the deal.

** Privacy **

Title: White House Is Urged to Protect Privacy of Internet Users
Source: New York Times (C2)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/05privacy.html
Author: Jeri Clausing
Issue: Privacy
Description: "It's clear that the Clinton administration policy has been an
abysmal failure," said Jeff Chester of the Center for Media Education.
Children's groups and civil liberties advocates are urging the
Administration to abandon its hands-off policy on online privacy regulation.
Federal Trade Commission Chairman Robert Pitofsky said, ""I still believe
that the best way to deal with this is self-regulation rather than
heavy-handed government." Clausing reports, "The FTC, which surveyed 1,400
Web sites in March, found that a year after the agency had warned businesses
of the need to adopt strong privacy guidelines to avoid government
regulation, 92 percent of all Web sites collected personal information from
users and only 14 percent of those sites disclosed how that information was
used." The Commerce Dept will hold an open meeting on privacy, see
http://www.ntia.doc.gov/ntiahome/press/priv604.htm]
*********
Traveling at three papers an hour...we are outta here. We'll see you
**Wednesday**!!

Communications-related Headlines for 6/4/98

[Today's CRH is a "Headlines Lite." We did not cover the Wall Street Journal
or the Chicago Tribune today. KT]

Universal Service
MCI Announces 5.9 Percent Surcharge for Universal Service
(TelecomAM)

Internet Regulation & Privacy
F.T.C. to Propose Laws to Protect Children on Line (NYT)
Apologies for Mix-Up That Listed E-Mail Codes (NYT)
Digital Media Content for Children and Teens (NTIA)

** Universal Service **

Title: MCI Announces 5.9 Percent Surcharge for Universal Service
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: In a tariff filing at the FCC, MCI has announced it will charge
5.9 percent fee on interstate and international calls to fund traditional
universal service and the new "e-rate" program. "Federal Universal Service
Fee" is a new line item that will appear on customers' bills starting in
July. MCI spokeswoman Claire Hassett said the company added the charges to
residential bills after estimating that it will take a "voluntary loss of
$107 million" in the first half of 1998 because it did not assess the fee.

** Internet Regulation & Privacy **

Title: F.T.C. to Propose Laws to Protect Children on Line
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/06/biztech/articles/04privacy.html
Author: Amy Harmon
Issue: Internet Regulation
Description: Rep. Edward Markey, D-Mass., said, "This is a historic
benchmark that changes forever the discussion of the protections which
children need in a cyberera." A new report from the Federal Trade Commission
is expected to censure the Internet industry for doing nearly nothing to
protect online privacy. "Children are told by parents not to talk to
strangers whom they meet on the street, but they are given a contrary
message by Web sites that encourage them to interact with strangers in their
homes via the Web," the report says.

Title: Apologies for Mix-Up That Listed E-Mail Codes
Source: New York Times (C6)
http://www.nytimes.com/library/tech/yr/mo/cyber/articles/04globe.html
Author: Lisa Napoli
Issue: Privacy
Description: 35,000 subscribers to Advertising Age magazine got email
inviting them to join an online community -- at TheGlobe.com. The email
contained a preselected name and password -- but the password seemed very
familiar since it is the same one subscribers were using to log on to the Ad
Age site. The email did not note the connection between Ad Age and TheGlobe.
"The Ad Age people merged their database with ours so people wouldn't get a
second password, to create a seamless introduction to the community," said
Esther Loewy, a spokeswoman for TheGlobe.com. "That's pretty standard in
terms of business alliances."

Title: Digital Media Content for Children and Teens
Source: NTIA
http://www.ntia.doc.gov/ntiahome/press/contentd.htm
Issue: Internet Regulation
Description: Further details on the June 11-12 conference on Digital Media
Content for Children and Teens have been released. Participants in the
conference will work together over the two days to identify concrete action
by private companies, non-profit organizations, educators, government and
young people that will enrich online learning for America's children and teens.
*********

Communications-related Headlines for 6/3/98

Telephone/Universal Service
Long Distance Fee Fuss (WP)
FCC Asks AT&T, MCI and Sprint to Respond to Congressional
Inquiries About Access Charge Savings (TelecomAM)
Furchtgott-Roth Tells FCC to Shed Light on the
"Hidden Tax" (FCC)
Open Commission Meeting Agenda (FCC)

Philanthropy
Soros to Fund Grants for Public-Interest Lawyers (WP)

Privacy
Firms On Web Faulted on Privacy (WP)

** Telephone/Universal Service **

Title: Long Distance Fee Fuss
Source: Washington Post (D4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/03/152l-060398-idx.html
Author: Don Oldenburg
Issue: Long Distance
Description: "In January, the Federal Communications Commission (FCC) began
requiring long-distance carriers to pay the "Presubscribed Interexchange
Carrier Charge," a flat-rate monthly fee of 53 cents per phone line paid to
local phone companies for access to their telephone networks. The FCC did
not require long-distance carriers to add this fee to customers' phone bills
because they previously had been paying inflated access fees and already
were including those costs in their monthly rates." But long distance
companies are not charging just $0.53: MCI added a "national access fee" of
$1.07, AT&T added a 95-cents "carrier line charge." Sprint passed along an
80-cents "presubscribed line charge." "We're doing all we can to make sure
that the long-distance companies don't take advantage of consumers during
this transition," says FCC Chairman Bill Kennard, adding that the FCC
notified long-distance carriers that the blended or estimated fees aren't
fair to consumers.

Title: FCC Asks AT&T, MCI and Sprint to Respond to Congressional
Inquiries About Access Charge Savings
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Telephone Regulation
Description: Senator Byron Dorgan (D-ND) and Minority Leader Thomas Daschle
(D-SD) sent a letter to the FCC asking if long distance companies would pass
cost reductions on to customers if universal service fees were shifted to
local phone bills and access charges were lowered. FCC Common Carrier Bureau
Chief Richard Metzger has asked AT&T, MCI and Sprint to reply since they are
in the best position to answer the senators. Mr. Metzger asked that the
companies reply by June 3.

Title: Furchtgott-Roth Tells FCC to Shed Light on the "Hidden Tax"
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: "Some will say that the new hidden tax will be used for a
worthy cause, to support schools and libraries," FCC Commissioner
Furchtgott-Roth said. "If the cause is good, surely that is all the more
reason to let the public know about the tax." In a press release yesterday,
Commissioner Furchtgott-Roth 1) said the FCC should remove the "hidden tax"
from phone bills and make universal service fees explicit, 2) attacked the
"e-rate" program,
which he said is over-funded, and 3) praised AT&T's decision to add
line-item charges on residential bills to fund universal service. The
Commissioner said the FCC should be focusing on rural universal service
instead of the school and library program. He suggested that only $700
million needs to be collected to fund telecommunications services and $1.3
billion could be saved by not funding inside wiring which he believes was
not mandated by the Telecom Act of 1996.

Title: Open Commission Meeting Agenda
Source: FCC
http://www.fcc.gov/Bureaus/Miscellaneous/Public_Notices/Agenda/1998/ag98060
9.html
Issue: Universal Service
Description: The Federal Communications Commission will hold an Open Meeting
on Tuesday, June 9, 1998, which is scheduled to commence at 3:00 p.m. in
Room 856, at 1919 M Street, N.W., Washington, D.C. The Commission will
consider action concerning proposals to ensure the accuracy and completeness
of billing disclosures made by telecommunications carriers. The Commission
will consider action concerning the collection levels for the schools and
libraries and rural health care universal service support mechanisms for the
third and fourth quarters of 1998. Finally, the Commission will consider
action concerning issues related to local exchange carrier recovery of
universal service contribution obligations. The audio portion of the meeting
will be available at http://www.fcc.gov/realaudio/.

** Philanthropy **

Title: Soros to Fund Grants for Public-Interest Lawyers
Source: Washington Post (C17)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/03/039l-060398-idx.html
Author: David Segal
Issue: Philanthropy
Description: Billionaire investor George Soros announced a new program that
will make $9 million available to fund the salaries of public interest
lawyers. The funds will be matching grants and Mr. Soros challenged law
firms and corporations to ante up and pay the other half of the lawyers'
salaries. There will be ~70 fellowships per year for three years and pay
lawyers $44,000 plus help them repay student loans. Financial help has
already been pledged by New York's Cravath, Swaine & Moore and Washington's
Arnold & Porter. Corporate sponsors include Ford Motor Co., AT&T Corp. and
Mobil Corp.

** Privacy **

Title: Firms On Web Faulted on Privacy
Source: Washington Post (C15)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/03/032l-060398-idx.html
Author: Robert O'Harrow Jr.
Issue: Privacy
Description: In a survey of 1,400 websites, the Federal Trade Commission has
found that few companies tell website users how personal information is
collected and used. The report is to be the first major assessment of how
corporations are responding to the Clinton Administration's call for
self-regulation nearly a year ago. "Kathryn Montgomery, president of the
Center for Media Education, said the number of marketers who seek personal
details from children online is growing rapidly. She said such Web sites
routinely offer prizes and other rewards to children who share their names,
ages and family information. Some companies send children e-mail in the
guise of cartoon characters, asking the children to return to their Web site."
*********

Communications-related Headlines for 6/2/98

Editor's note: You have probably noticed that of late CRH has not been the
well-oiled machine it once was. Betsy and I are still trying to work out the
kinks with me working in Chicago. The extra workload has driven Betsy to
distraction and she'll be taking a few days off this week and next week.
There may be some disruption in CRH service, but we'll get our act together
soon. Thanks for your patience. KT

Competition
Sprint in Plan To Enter Local Phone Market (NYT)
The Old Phone System Is Facing an Overload,
So Sprint Has a Plan (WSJ)

Media & Politics
Political Consultant Decides Not to Send Bulk E-Mail
(CyberTimes)

Radio
The Great Radio Rebellion (WP)

Privacy
Proposed Standards Fail to Please Advocates of Online Privacy
(CyberTimes)
Reporters Can Be Sued Over Privacy, Court Says (NYT)

Year 2000
Many Small Business Owners Shrug at Year 2000 Problem (WSJ)
Trustbusters to Address Year 2000 Fix (WP)

** Competition **

Title: Sprint in Plan To Enter Local Phone Market
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/06/biztech/articles/02sprint.html
Author: Seth Schiesel
Issue: Competition
Description: The nation's #2 long distance carrier, Sprint, will announce
plans to enter the local telephone service market. For the past two years,
Sprint has mainly sat on the sidelines concerning local competition. Sprint
is building a new communications network that will enable customers to have
a single connection that gives them multiple phone lines, access to the
Internet and other advanced data services, and video conferencing. The
service will be available to large business customers later this year, all
business customers by mid-1999, and to residential customers by late-1999.
Partners include Cisco (network hardware), Bellcore (software), and
Tandy/Radio Shack (retail).

Title: The Old Phone System Is Facing an Overload, So Sprint Has a Plan
Source: Wall Street Journal (A1,A6)
http://wsj.com/
Author: John J. Keller
Issue: Telephony
Description: Sprint is planning to announce a network redesign today that
could alter the way communications systems are delivered, what they cost and
how you are billed for them. Sprint is betting that this new system, called
the Integrated On-Demand Network (ION), can increase the company's
call-handling capacity 17-fold, cut the costs of long-distance calls by 70%
and set new standards for service and billing. "The Sprint system will
eliminate the old circuit-switching on which the entire phone industry has
been based for more than 100 years," while it will still be compatible and
able to communicate with the older networks, says former Sprint executive
Richard Smith, who is now chief executive of Bellcore. "The world-wide
implications of this for phone companies and their suppliers are enormous."
By integrating high-speed switches, data-packet routers and optical fiber
into the current system the user and businesses will be able to conduct
multiple phone calls and use the Internet at speeds up to 100 times faster
than current conventional modems, among other things, - all simultaneously
through a single connection.

** Media & Politics **

Title: Political Consultant Decides Not to Send Bulk E-Mail
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/06/cyber/articles/02spam.html
Author: Rebecca Fairley Raney
Issue: Media & Politics
Description: Political consultant Robert Barnes decided *not* to send
500,000 unsolicited email messages before the California primary election
yesterday [see "Spam in California Political Race May Backfire"
http://www.nytimes.com/library/tech/98/05/cyber/articles/27politics.html].
Some were concerned that the move might chill online political discourse
because Mr. Barnes had collected the email addresses from posts to political
discussion websites. The decision came from candidates: "Rather than create
controversy, we decided not to do it," said State Senator Bill Lockyer from
Silicon Valley, who is running for attorney general. "I'm very sensitive
about spamming. I agree with those who are annoyed by it." CyberTimes
writes, "Many observers predicted that the outcome of this high-profile
mailing would determine the direction of online politicking. If it had
succeeded, it could have been the first step toward a attack ads. If it had
failed, it could have cost the candidates the election."

** Radio **

Title: The Great Radio Rebellion
Source: Washington Post (D1,D7)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/02/099l-060298-idx.html
Author: Marc Fisher
Issue: Radio
Description: After Congress decided in 1996 to loosen restrictions on the
number of radio stations anyone could own, the big radio companies promised
that everything would be fine. But that has not been the case and the
listener is the one who has been forced to pay through the loss of
diversified radio stations around the country. Listener rebellions have
occasionally persuaded owners to return to their original formats. But now
thousands of listeners have come together to make their voice heard in a
group called Americans for Radio Diversity. The group, created by Jeremy
Walker, a graphic designer based in Minneapolis, has just released the first
of three planned CDs. The recordings, called "Teleconned: We Want the
Airwaves," protests the deregulation that "turned the playground of radio
stations over to the bullies." The CD features 16 songs by groups like Ben
Fold Five, Ani DiFranco and Nicole Blackman. Profits from the discs "will go
to support independent stations around the country, and give them a support
system to continue broadcasting spirited, irreverent, unusual radio," says
Blackman.

** Privacy **

Title: Proposed Standards Fail to Please Advocates of Online Privacy
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/06/cyber/articles/02privacy.html
Author: Jeri Clausing
Issue: Privacy
Description: Vice President Gore is hailing the Platform for Privacy
Preferences, or P3P, http://www.w3.org/Press/1998/P3P as an example of
self-regulation of privacy standards on the Internet. "I welcome this
important new tool for privacy protection," Gore said. "It will empower
individuals to maintain control over their personal information while using
the World Wide Web." P3P "would enable sites to disclose their privacy
practices in a way that is understandable to users' browsers. Web surfers
could then set preferences in their browsers to control how much information
they want to release to Web sites when they visit," Clausing writes. Privacy
advocates are concerned, however, because surfers who wish to remain
anonymous could be blocked from surfing to many sites. "We think this is
headed in the wrong direction on technical solutions," said Marc Rotenberg,
director of the Electronic Privacy Information Center, a Washington-based
public interest research center. "We think the right solution would limit or
eliminate collection of personal information. P3P basically ducks the hard
problem and transfers a lot of the burdens back to consumers. I think one of
the big problems here is that it creates disincentives to protecting privacy
because people with high privacy preferences may find themselves excluded
from a lot of Web sites. It opens the door to a new kind of redlining."

Title: Reporters Can Be Sued Over Privacy, Court Says
Source: New York Times (A16)
http://www.nytimes.com/
Author: Associated Press
Issue: Journalism/Privacy
Description: California's Supreme Court has ruled that reporters can be sued
for invasion of privacy if they use hidden cameras or other clandestine
surveillance methods to intrude on private places or conversations. The
ruling does not include those people that are part of a newsworthy event.

** Year 2000 **

Title: Many Small Business Owners Shrug at Year 2000 Problem
Source: Wall Street Journal (B2)
http://wsj.com/
Author: Rodney Ho
Issue: Y2K Bug
Description: According to a recent survey of 500 small businesses sponsored
by the National Federation of Independent Business and Wells Fargo Bank, 40
percent of small businesses say they have no plans to do anything about the
possibility of computer problems on Jan. 1, 2000. "Most small businesses
regard Year 2000 (Y2K) as little more than a blip, a minor glitch with
modest or no consequences for their operations," says William Dennis, senior
research fellow for NFIB's education foundation. Mr. Dennis points out that
82 percent of small businesses are at risk for Y2K problems because many
rely on computers, cash registers, phones or elevator systems that are
dependent on dat- or time-dependent microchips. Many of the small-business
owners say they haven't had any time to think about it because they have
been so busy with their daily activities. A survey released today by the
National Association of Manufacturers shows a "similar lack of preparedness
among its smaller members."

Title: Trustbusters to Address Year 2000 Fix
Source: Washington Post (C3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/02/056l-060298-idx.html
Author: Rajiv Chandrasekaran
Issue: Y2K Bug
Description: The Justice Dept. plans to formally announce that sharing
information with competitors about how to fix the Year 2000 computer problem
(Y2K) will not violate antitrust laws, said a senior administration official
yesterday. Many companies have expressed interest in exchanging information
about technological developments, management strategies and other
information relating to Y2K, but they have been concerned that they might be
violating antitrust laws. The department's antitrust division "will say that
if they're truly sharing information to fix this problem, that by itself is
not a violation of the antitrust laws," said John A. Koskinen, who chairs a
presidential council on the Y2K conversion.
*********
How about those Cubs?

Communications-related Headlines for 6/1/98

Digital Television
Unbundling DTV and Free Time (B&C)
Must-Carry Draft Expected (B&C)
DTV Tower Strike Force (FCC)

Television/Cable
Parents Taking to Ratings (B&C)
Don't Box Us In, Says Cable (B&C)

Media & Politics
Money and Polls Take Center Stage in California Race (NYT)

Internet Economics
Long Boom or Bust (NYT)
Technology: Overbidding on Internet Stocks Has
Broad Consequences (NYT)
Creating a Silicon Valley in the Washington Area (NYT)

Internet
Los Angeles Libraries Experience Renaissance With Computer Use
(CyberTimes)
In Brief (B&C)
Netscape Uses Browser to Beef Up Web Business (WSJ)

Technology
Intel Delays The Delivery of Key Chips (WSJ)
Marshaling Microchips for a Better Dog Tag (WP)

Privacy
Protecting Privacy (WP)

Newspapers
An On-Line Critic Tackles the Big Papers (NYT)
Some Newspapers Try No-News Front Page (NYT)

Minorities & Jobs
Lutheran Church-Missouri Synod v. FCC & United States (FCC)

Radio Ownership
In Brief (B&C)
Joint Statement: Radio Assignment and Transfer in Redding, CA
(FCC)

Advertising
TV Guide to Introduce Coverage of Advertising (NYT)

** Digital Television **

Title: Unbundling DTV and Free Time
Source: Broadcasting&Cable (p15)
http://www.broadcastingcable.com/
Author: B&C Writers of Closed Circuit
Issue: Digital TV/Public Interest
Description: FCC officials have decided to "separate their planned efforts
to write digital TV public interest rules from their study of proposals" to
give political candidates free air time. The proposed inquiry is now
focusing on ways to enhance political debate. Officials say that regulators
will take up the digital TV public interest issues in a later rulemaking.

Title: Must-Carry Draft Expected
Source: Broadcasting&Cable (p17)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Digital TV/Cable
Description: As early as this month, FCC commissioners plan to launch an
effort to decide how must-carry rules will be applied to digital TV
broadcasts. Susan Fox, senior legal advisor to FCC Chairman William Kennard,
told a Washington broadcast conference last week that commissioners should
receive draft plans for the rulemaking proposal in June.

Title: DTV Tower Strike Force
Source: FCC
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1998/nrmm8017.html
Issue: Digital Television
Description: The Federal Communications Commission today announced the
creation of a DTV tower strike force, chaired by Commissioner Susan Ness, to
target potential problems in the implementation of digital broadcast
television (DTV) and to work with local authorities and broadcasters to
expedite implementation of DTV. Commissioner Ness said, "The FCC is
committed to doing everything possible to help the television viewing public
quickly receive the dramatic benefits of new digital television. This group
will work to help resolve any problems that could slow down the DTV
implementation process."

** Television/Cable **

Title: Parents Taking to Ratings
Source: Broadcasting&Cable (p16)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: V-chip
Description: Although more than half of the parents surveyed say they use
the revised TV ratings system in deciding what programs their children can
watch, almost 70 percent say they do not plan to purchase a new V-chip
equipped set, according to a study of 1,358 parents and 446 children
conducted by the Kaiser Family Foundation. However, 65 percent of parents
said they would use a V-chip equipped set if they had one, and 78 percent of
the children said they approved of the V-chip design to "allow parents to
block access to shows that get certain ratings, so their kids won't be able
to watch." But more than 35 percent (one-third) of kids interviewed said
they would try to get around such blocking techniques so they could watch
forbidden programs. "The Kaiser study shows that the TV parental guidelines
are doing what they were designed to do -- provide parents with advance
cautionary information to assist them in monitoring the television watching
of their young children," said Jack Valenti, president of the Motion Picture
Association of America and architect of the TV ratings system.

Title: Don't Box Us In, Says Cable
Source: Broadcasting&Cable (p15)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Cable
Description: Cable operators want the FCC to allow them to continue
providing settop boxes that incorporate both "channel surfing" and security
functions. "A prohibition on the provision of such integrated boxes...would
be passed on to the consumer in the form of lower sale or lease prices," the
National Cable Television Association said in a submission to FCC
commissioners last week. Commissioners are considering rules to implement
provision of the 1996 Telecommunications Act that "mandate the commercial
availability of settop 'navigation' devices." At the end of last week, FCC
officials were still "struggling to wrap up a rulemaking" that they say is
"fraught" with technical complexity.

** Media & Politics **

Title: Money and Polls Take Center Stage in California Race
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/washpol/calif-elect-gov.html
Author: Richard Berke
Issue: Media & Politics
Description: California voters will pick nominees for governor today in "an
election that has rekindled a debate over the potency of television
commercials and underscored the perils for wealthy candidates who finance
their own campaigns," Berke writes. In the Democratic primary for governor,
Alfred Checchi has spend some $40 million -- mostly on TV ads. The amount is
a new record for any non-Presidential election. Rival Jane Harman, a Member
of Congress from Los Angeles, has spend nearly $15 million of her husband's
fortune. But the expected winner is Lieutenant Governor Gray Davis, a
twenty-five-year political veteran who has raised money himself and spend
much less on TV advertising. A veteran pollster said, "It's an extraordinary
case of an inverse relationship between advertising and results. It's going
to be the kind of story they'll put in advertising textbooks because
everyone thinks if you put more money in advertising it sells more."
[Also see NYT (A12), "Last in Flash and Cash, an Underdog Pulls Ahead" by
Todd Purdum
http://www.nytimes.com/yr/mo/day/news/washpol/calif-elect-gov-davis.html]

** Internet Economics **

Title: Long Boom or Bust
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01futurist.html
Author: Steve Lohr
Issue: InfoTech
Description: Peter Schwartz sells big ideas. He has a vision of something he
calls "The Long Boom," an era between now and 2020 in which there will be a
global economic boom fueled by technological advance. Part of the vision is
a telecommunications revolution brought to all the world by satellite
projects, high-speed Internet connections, telephony and video. He sees
phone and Internet access for *everyone* by 2005.

Title: Businesses Explore Cyberauctions
Source: New York Times (C5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01auction.html
Author: Claudia Deutsch
Issue: Electronic Commerce
Description: "Auctioneers without Internet auctions will be out of business
in five years," said Michael Brader-Araje of Open Site Technologies
http://www.opensite.com. There is a growing industry serving
business-to-business Internet auctions. Forrester Research Inc estimates
that $8.7 billion in goods will be auctioned this year online and that
number is expected to grow to $52.6 billion by 2002. Advantages to
businesses include: 1) they move older models off shelves and off books, 2)
they obviate the need to transport goods to a live auction, 3) they let
equipment dealers buy and sell without having to move goods to their own
warehouses, 4) they let companies unload excess part anonymously, and 5)
they help companies that have closed or modernized plants to place uneeded
tools.

Title: Technology: Overbidding on Internet Stocks Has
Broad Consequences
Source: New York Times (C5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01tech-column...
Author: Jerry Colonna, Flatiron Partners
Issue: Internet Economics
Description: John Doerr is often quoted as saying that the Internet
represents the greatest legal creation of wealth in history. The rise of
Internet stocks seems to prove him right, but they are a tough yardstick for
companies to be measured by. Pre-Internet, a return of five times invested
capital was terrific. Now, some investors are seeing returns of 500 times
invested capital over three to five years. The problem is that the
fascination with everything Internet can overvalue stocks and when the
poorly planned ones fail expectations, they can bring down the value of all
Internet-related stocks. [See also ChiTrib, Sec 4, p.2 "A contrarian sees
collision on technology stock bandwagon" by Adam Lashinsky San Jose Mercury
News)]

Title: Creating a Silicon Valley in the Washington Area
Source: New York Times (C5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01washington....
Author: Tom Watson
Issue: InfoTech
Description: You've heard of Silicon Valley, Silicon Alley in NYC, and maybe
even Silicon Toast...errr Silicon Coast in LA. But there's also a large
number of digital-related start-ups in the Washington, DC area from
Baltimore to Northern Virginia. There's also Mario Morino who started a
software company, grew it and walked away with $80 million when he sold it
to Computer Associates. Mr. Marino used the money to start the Marino
Institute, which finances programs in youth advocacy and services,
entrepreneurship, social networking, and community services. The Institute
founded the Potomac Knowledgeway Project which is promoting
"knowledge-based" business in the region. Last year, the Netpreneur program
www.netpreeur.org was started; its aim is to build the wired business
community by getting digital entrepreneurs together, online and off.

** Internet **

Title: Los Angeles Libraries Experience Renaissance With Computer Use
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/31library-la.html
Author: Rebecca Fairly Raney
Issue: Internet Access/Libraries
Description: A recent study conducted by MCI LibraryLINK found that since
1996 the use of libraries for Internet use has grown by more than 500
percent. The study showed that 16 percent of study respondents accessed the
Internet from someplace other than school, work or home and that almost half
of the group gained access via their local library. Susan Kent, a librarian
in Los Angeles has worked in public libraries for 30 years and says: "I see
what's happening now as the best time ever for libraries." She also is aware
that due to Internet connection libraries are moving more into the public
spotlight as one way to close the gap between those who have computers and
those who do not. You can access MCI LibraryLINK's site
at:http://www.librarylink.com/

Title: In Brief
Source: Broadcasting&Cable (p57)
http://www.broadcastingcable.com/
Author: B&C Writers
Issue: Copyrights/Internet Regulation
Description: The House Telecommunications Subcommittee will hold a hearing
this Friday on a bill that would protect copyrighted material online. The
bill has already passed out of the House Judiciary Committee, but Rep. Tom
Bliley, chairman of the Commerce Committee, complained that the legislation
also falls under his jurisdiction. A subcommittee markup of the bill will
follow on June 17 and then will proceed to a full committee markup.
Proponents of the bill hope to get legislation passed this year.

Title: Netscape Uses Browser to Beef Up Web Business
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Kara Swisher
Issue: Corporate Revamping
Description: Netscape Communications Corp. is planning to unveil today a
"major revamping" of its Web site. Netscape's is upgrading its software to
include special buttons that "move users more quickly to features of its
Netcenter site, and allows them to configure the browser and service to work
more like an integrated computer desktop." Netscape also is planning to
announce plans to merge its browser division into the Web-site division.
"Our goal is to turn the 70 million users of our software into the world's
biggest media network," said Mike Homer, as executive vice president who
recently took over responsibility for Netcenter. "Being able to leverage our
browser, so that features of itlink into the Web site seamlessly, is a great
differentiation for us over our competitors."

** Technology **

Title: Intel Delays The Delivery of Key Chips
Source: Wall Street Journal (A3,A6)
http://wsj.com/
Author: Quentin Hardy
Issue: Technology
Description: Intel Corp. is delaying the delivery of its next-generation
microprocessor by more than six months. The move could disrupt plans of more
than a dozen computer and software companies "whose fortunes are tied to the
long-awaited chip." Intel had hoped to have the chip, code-named Merced,
available by the second-half of 1999. But due to underestimating the time it
would take to test the complex chip on a variety of computer systems, the
company doesn't expect delivery of large commercial quantities until
mid-2000. The Merced is the most significant chip to come out of Silicon
Valley since Intel's Pentium in 1993.

Title: Marshaling Microchips for a Better Dog Tag
Source: Washington Post (Bus.5,6
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/01/017l-060198-idx.html
Author: Sarah Schafer
Issue: Technology
Description: Hal Woodward and his four-person company, Data-Disk, have
designed a "digital dog tag" in response to the Army's request for a small,
resistant device that would contain a computer chip holding a soldier's
medical and personal information for quick access in the field. According to
the U.S. Army Center of Military History, dog tags have been standard issue
in the Army since 1906. Traditionally they have displayed a soldier's name,
social security number and blood type. By using the digitized tag, called
Medi-Tag, soldiers could carry around their entire medical histories. The
information would be accessed using a specialized scanning device that would
give doctors instant access to medical records. Commercial enterprises, such
as nursing homes, have also expressed interest in these types of devices.

** Privacy **

Title: Protecting Privacy
Source: Washington Post (A16)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/01/001l-060198-idx.html
Author: WPost Editorial Staff
Issue: Privacy
Description: The Justice Dept. sent a letter to Rep. Henry Hyde, chairman of
the House Judiciary Committee, on May 20 regarding the department's
opposition to the Clone Page Authorization Act, a bill the committee was
"poised to take up and had passed the Senate without measurable opposition."
Clone pagers are devices used by law enforcement to "mimic the numeric
beepers" carried by thousands of Americans. Agents use the devices to
intercept beeper messages sent to a target of surveillance. They are most
often used in pursuing drug dealers. Currently, authorities are required to
obtain a search warrant before using a clone pager. But the legislation
would lower that standard making it more identical to tracing a call. The
Justice Dept. wrote in its letter: "Because clone pagers intercept the
'contents' of a communication, we believe there is a substantial possibility
that...courts would hold their use to constitute a 'search' for Fourth
Amendment purposes. Accordingly, we believe the proposed bill's provisions
for authorizing the use of clone pagers would be subject to serious
constitutional challenge." The department also said: "We are unaware of any
law enforcement need for such authorization and believe that the proposal is
unwise as a policy matter." As result of the letter, Rep. Hyde removed the
bill from the committee's agenda at a recent markup.

** Newspapers **

Title: An On-Line Critic Tackles the Big Papers
Source: New York Times (C8)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01slate.html
Author: Lisa Napoli
Issue: Internet Content/Newspapers
Description: Scott Shuger is paid to read, rant about and to the nation's
major daily newspapers. "Today's Paper" is a service of Slate magazine,
owned by Microsoft. "One of the things he is supposed to do is educate
people about how to read the newspaper," said Slate's Editor, Michael
Kinsley. "It's always interesting that USA Today and The New York Times have
different views about what's going on in the world. One will lead with a
story on page one and the other will have it buried on D24. Both of those
judgments can't be right." Each night, Mr. Shuger reads the next day's front
pages and writes a report on what made the news, what didn't, placement and
missing details in articles. See
http://www.slate.com/code/todayspapers/todayspapers.asp, but you come back
to Headlines, y'hear?

Title: Some Newspapers Try No-News Front Page
Source: New York Times (C8)
http://www.nytimes.com/yr/mo/day/news/financial/no-news-frontpage.html
Author: Dylan Loeb McClain
Issue: Newspapers
Description: Back in 1996, a fierce internal debate started at the
Pittsburgh Post-Gazette when the paper's early Sunday edition was printed
with no front-page articles -- just teasers to features in the rest of the
paper. The result has been increased sales and imitators in Milwaukee,
Dallas and Fort Worth. "We looked at why people were buying that edition,
and it wasn't for breaking news," said Ralph Langer, editor of the Morning
News. The advantage of the format, he said, is that it allows the paper to
highlight "the articles you think have the most reader appeal."

** Minorities & Jobs **

Title: Lutheran Church-Missouri Synod v. FCC & United States
Source: FCC
http://www.fcc.gov/Bureaus/OGC/Briefs/1998/petn971116.html
Issue: Minorities/Jobs
Description: "The Lutheran Church--Missouri Synod [the Church], operates two
radio stations. For many positions at the stations, [the Church] recruited
and hired only seminarians or their spouses. This denomination's membership
is about two per cent African-American, and the NAACP challenged the
stations' license renewal applications on the ground that the stations'
practices had not complied with the FCC's requirements for minority
recruiting. The Commission initially concluded, pursuant to its
long-standing policy upheld by this Court in King's Garden, Inc. v. FCC, 498
F.2d 51 (D.C. Cir. 1974), that the Church had erred by giving preferential
treatment to seminarians and their spouses for positions that did not
directly affect the stations' programming, and this case ensued. However, in
a broad rule making proceeding that had been initiated in 1996 to streamline
the Commission's EEO rule, the Commission adopted an order while this case
was pending that changed its King's Garden policy: the Commission issued a
binding order (incorrectly termed a mere "policy statement" by the panel)
permitting radio stations owned by religious groups to favor members of
their religious group for all positions at the station. Having changed
position on the central issue presented by the case, the Commission
accordingly sought a remand." (See Chairman Kennard's statement
http://www.fcc.gov/Speeches/Kennard/Statements/stwek837.html)

** Radio Ownership **

Title: In Brief
Source: Broadcasting&Cable (p56)
http://www.broadcastingcable.com/
Author: B&C Writers
Issue: Radio/Ownership
Description: The Federal Communications Commission "signed off" last week on
CBS's acquisition of American Radio Systems Corp.'s 97 radio stations. "The
commission granted CBS waivers of its one-to-a-market rule in Boston,
Baltimore, Pittsburgh and San Francisco but required CBS to spin off
stations in Boston, Baltimore and San Francisco. An earlier settlement with
the Justice Dept. also required CBS to spin off a total of seven stations."

Title: Joint Statement: Radio Assignment and Transfer in Redding, CA
Source: FCC
http://www.fcc.gov/Speeches/Ness/States/stsn815.html
Author: Commissioners Ness & Tristani
Issue: Radio/Ownership
Description: "The application approved today by the Mass Media Bureau raises
the question of whether it is in the public interest to grant the assignment
and transfer of four additional radio stations in the Redding, California
area to Regent Communications. The assignment, in our view, should not have
been approved without a more rigorous examination of the facts.
Unfortunately, neither the Bureau nor the Commission has made such a review.
The Bureau's action, therefore, should not be viewed as having any
precedential weight. The Commission has an independent statutory obligation
under Section 310(d) to determine that each and every broadcasting license
assignment or transfer is in the public interest. This duty is complementary
to, and not subrogated to, the antitrust responsibilities of the Department
of Justice or the Federal Trade Commission."

** Advertising **

Title: TV Guide to Introduce Coverage of Advertising
Source: New York Times (C8)
http://www.nytimes.com/yr/mo/day/news/financial/media-talk.html
Author: Stuart Elliot
Issue: Advertising/Television
Description: So, you think some ads are better than the programming? Well,
now TV Guide has hired a consulting editor to write a column every other
week on advertising as well as special issues on TV advertising.
"Advertising has become one of the most entertaining and talked-about parts
of TV viewing," said Steven Reddicliffe, editor in chief of TV Guide.
(Entertainment Weekly has countered with a planned "Guide to Summer
Commercial Viewing" which should hit newsstands on Saturday)
*********

Benton

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June 1998

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