July 1998

Communications-related Headlines for 7/17/98

Universal Service
Plan to Wire Schools is Under Fire (CyberTimes)
Administration of Federal Universal Service Support (FCC)
SLC Will Make GAO-Recommended Changes in E-Rate Program
(TelecomAM)
Letter from Chairman Kennard to the Schools
and Libraries Corporation (FCC)

Internet
The F.C.C. May Act to Aid Home Internet Access (NYT)
Man Collects $200 From Unwanted Spam (CyberTimes)

Telephony
FTC Suit Accuses 4 Companies Of 'Cramming' Phone Customers (WP)
Calls for Help on Cell Phones' Iffy Access to 911 (WP)

Television
GE's NBC Unit is Seeking to Expand In Cable as Broadcast
Economics Soften (WSJ)

Privacy
FBI Seeks Access to Mobile Phone Locations (NYT)
U.S. Data Code Is Unscrambled In 56 Hours (NYT)
Is Software Like a Can Opener or a Recipe (CyberTimes)

Philanthropy
New Money and Museums (WP)

** Universal Service **

Title: Plan to Wire Schools is Under Fire
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/17erate.html
Author: Jeri Clausing
Issue: E-rate
Description: Schools and libraries will not receive federally subsidized
Internet hookups until at least this fall because the subsidy program still
lacks crucial safeguards to ensure money goes only to eligible applicants,
Ira Fishman, CEO of the Schools and Libraries Corp., told Congress on Thursday.
Mr. Fishman said the corporation is working to address the problems raised
by a review
released yesterday by the General Accounting Office (GAO). The report by the
GAO, Congress's investigative arm, was requested by Senator John McCain
(R-AZ), Chairman of the Commerce Committee, who has been a vocal critic
about the subsidy program, also called the e-rate. The report said that the
corporation has taken longer than expected to process the 30,000
applications it received from schools and libraries around the country and
it lacks adequate compliance checks and internal controls. "As we debate
this issue, it is very important to keep several things in mind. First the
e-rate program is fundamentally strong and sound," said Senator Jay
Rockefeller (D-WV). "While concerns have been aired, not one issue has been
raised that has not or cannot be fixed."

Title: Administration of Federal Universal Service Support
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da981336.pdf
Issue: Universal Service
Description: "In connection with supplemental appropriations legislation
enacted on May 1, 1998, Congress requested that the Commission propose a
single entity to administer the support mechanisms for schools and libraries
and rural health care providers. In its Report to Congress, the Commission
proposed to merge the Schools and Libraries Corporation (SLC) and the Rural
Health Care Corporation (RHCC) into the Universal Service Administrative
Company (USAC) as the single entity responsible for administering the
universal service support mechanisms for schools, libraries and rural health
care providers by January 1, 1999. The Commission indicated that USAC, SLC,
and RHCC would be required jointly to prepare and submit a plan of
reorganization, for approval by the Commission. On July 1, 1998, SLC, RHCC
and USAC filed a Report and Proposed Plan of Reorganization (Plan) for
revising the administrative structure of the federal universal service
support mechanisms. RHCC filed a Separate Statement of the Rural Health
Care Corporation and Request for Three Changes in the Plan (RHCC Statement),
proposing certain modifications to the Plan. An executive summary of the
Plan is attached hereto. In this Public Notice, we seek comment from
interested parties on issues raised by the Plan and the RHCC Statement. We
also seek comment on other issues regarding the administration of the
federal universal service support mechanisms, including processes for
Commission review of actions by USAC, RHCC and SLC, divestiture of USAC from
the National Exchange Carrier Association (NECA), and compensation
limitations." Comments due August 5, 1998. Download the Notice at
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da981336.wp.

Title: SLC Will Make GAO-Recommended Changes in E-Rate Program
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: At a Senate Commerce Committee meeting, the General Accounting
Office (GAO) made recommendation about how the Schools and Libraries Corp
(SLC) should improve the process for approving applications: 1) the SLC
should not send "funding commitment letters" before finishing a two-part
fraud-and-waste-control program that includes development of internal
controls and completion of a report by an outside auditor reviewing them'
and 2) the SLC should review a random sample of applications to determine
whether program integrity systems are working well enough to detect
ineligible applications. SLC CEO Ira Fishman told the Committee that FCC
Chairman Bill Kennard had already ordered the SLC to adopt the GAO
recommendations [see letter below]. The program will begin funding discounts
for schools and libraries this fall.

Title: Letter from Chairman Kennard to the Schools and Libraries Corporation
Source: FCC
http://www.fcc.gov/Speeches/Kennard/Statements/stwek855.html
Issue: Universal Service
Description: Letter from Chairman Kennard to the Schools and Libraries
Corporation requesting that they complete certain actions before they issue
any funding commitment letters to applicants for the schools and libraries
universal service support mechanism.

** Internet **

Title: The F.C.C. May Act to Aid Home Internet Access
Source: New York Times (C1,C3)
http://www.nytimes.com/yr/mo/day/news/financial/fcc-bells.html
Author: Seth Schiesel
Issue: Broadband
Description: The Federal Communications Committee is preparing to recommend
as early as today that the big local telephone companies be allowed to build
data systems without having to resell their use to competitors, officials
said Thursday. If the plan is adopted, it would represent the FCC's biggest
move in favor of the local Bell companies since the telecommunications laws
were overhauled in 1996. The plan, supported by FCC Chairman William
Kennard, is sure to draw opposition from the nation's large long distance
carriers and new local phone companies. Although the Commission could issue
a proposal next month, the battle over the plan is likely to "spill over"
into next year before any final rules are adopted. "Our goal is to turn what
is today a trickle into a gushing pipeline of entertainment and information
into the home," Chairman Kennard said in an interview yesterday. Referring
to the
copper telephone wires that reach into almost every home across the U.S.,
Chairman Kennard added: "The incumbents, they have the copper infrastructure. It
would be a shame not to create incentives for them to use it for broadband
services."

Title: Man Collects $200 From Unwanted Spam
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/17spam.html
Author: Matt Richtel
Issue: Email
Description: Bruce Miller of Seattle collected $200 this week from a bulk
emailer under Washington State's month-old anti-spam law. Mr. Miller, a
freelance writer and consultant, may be the first consumer to
ever benefit from any state or federal anti-spam legislation. The payment
comes as legislators in states around the U.S. and Congress are considering
laws to restrict the use of unsolicited commercial email, and in some cases
penalize the senders. To date, Washington and Nevada are the only two states
that have adopted laws that specifically address spam.

** Telephony **

Title: FTC Suit Accuses 4 Companies Of 'Cramming' Phone Customers
Source: Washington Post (F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/17/076l-071798-idx.html
Author: David Segal
Issue: Telephony
Description: Thursday July 16, the Federal Trade Commission announced that
it was filling a suit against companies that have reportedly engaged in the
practice of 'cramming' unauthorized charges onto consumers' monthly phone
bills. Teresa M. Schwartz of the FTC's Bureau of Consumer protection said,
"The problem of cramming represents the latest in a growing array of
scams that exploit new telephone technologies and the deregulated telephone
billing system." She adds that "Consumers need to be especially wary of
charges from companies they've never heard of, and if uncertain, they can
call the local phone company." [Relax, let your local telephone monopoly
take care of you]

Title: Calls for Help on Cell Phones' Iffy Access to 911
Source: Washington Post (F1,F2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/17/094l-071798-idx.h...
Author: Cindy Skrzycki
Issue: Wireless
Description: The possibility that some cellular phone users won't be able to
reach 911 in a case of emergency has come to the attention of the FCC. The
inability to complete a call is a result of holes that exist in cellular
carrier's service area. Because of this risk, the FCC is considering to mandate
"strongest-signal" technology which would allow phones to seek the
strongest signal in an area to complete a call. Industry groups oppose this
proposals because it would allow calls to be completed on competitors
signals if they are stronger. Another concern is that a "strongest-signal"
mandate could interfered with the implementing of locator technology that
enables emergency dispatchers to locate callers. According to a group
filling with the FCC, "We can't help them if we can't find them".

** Television **

Title: GE's NBC Unit is Seeking to Expand In Cable as Broadcast Economics
Soften
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Kyle Pope
Issue: Television
Description: General Electric Co.'s NBC is increasing its efforts to expand
its cable holdings "as the economics of the broadcast-television business
continue to sour," according to people at the network. Though no deals are
ready to take place, people close to the network said that NBC's search for
a cable network has recently intensified. "We've made no secret of the fact
that we are covetous of some kind of entertainment channel," said a senior
NBC official. "NBC is looking to do things differently, to cut a new path."

** Privacy **

Title: FBI Seeks Access to Mobile Phone Locations
Source: New York Times (A10)
http://www.nytimes.com/library/tech/98/07/biztech/articles/17tap.html
Author: John Markoff
Issue: Privacy
Description: Last week, FBI Director Louis J. Freeh asked members of the
Senate Appropriations Committee to append to the Justice Dept.
appropriations bill language that would require telephone companies to
provide police agencies with the exact location of cellular phone users,
sometimes without a court order. After learning of Director Freeh's meeting with
Committee members, the telecommunications industry and civil liberties
groups began "marshaling" opposition. "Privacy advocates say the proposal is
a dangerous and unconstitutional invasion of privacy, and the
telecommunications industry predicts that implementing such a law would cost
billions of dollars," Markoff reports. Attorney General Janet Reno will meet
with FCC
Chairman William Kennard today to make the FBI's case that such legislation
is needed in order for the agency to stay current with an evolving
technology that enables criminals to used mobile phones to avoid detection.

Title: U.S. Data Code Is Unscrambled In 56 Hours
Source: New York Times (C1,C3)
http://www.nytimes.com/library/tech/98/07/biztech/articles/17encrypt.html
Author: John Markoff
Issue: Encryption
Description: Researchers using a homemade supercomputer cracked the U.S.
government's standard data-scrambling code in record time during a contest
sponsored by RSA Data Security Inc., a Silicon Valley computer-security
software company. The breakthrough is being hailed by critics of the U.S.
export policy for encryption technology as proof that a "well-heeled" group
of terrorists or other criminals could easily break the code used by
corporate and financial institutions as well as government agencies. The
U.S. government has long sought to keep data-scrambling technology out of
criminal hands by setting limits on the strength of such software that can
be exported. But critics argue that not only is more powerful
data-scrambling software already available from foreign companies, but the
government's approved version is too weak to really protect legitimate
business users. "This is more evidence that the government's crypto policy
has been overtaken by technology," said Marc Rotenberg, director of the
Electronic Privacy Information Center, a privacy-rights group in Washington.
"It's about time to end the limits on strong encryption techniques."

Title: Is Software Like a Can Opener or a Recipe
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/cyberlaw/17law.html
Author: Carl S. Kaplan
Issue: Encryption
Description: On July 2 the U.S. District Court for the
Northern District of Ohio ruled that encryption software is essentially a
gadget and not protected under the First Amendment. While recipes are
considered speech and are protected by the First Amendment, gadgets are not.
Attorneys for Peter D. Junger, a law professor who challenged the
government's restriction of dissemination of his encryption software,
argued that the computer programs where a kind of language, and all language
receives First Amendment protection. Judge James S. Gwin disagreed with this
assertion in concluding that the software was "inherently functional" and
not "expressive," and is therefore undeserving of First Amendment protection.

** Philanthropy **

Title: New Money and Museums
Source: Washington Post (Editorial, A 20)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/17/044l-071798-idx.h...
Author: Washington Post Editorial Staff
Issue: Philanthropy
Description: Designer Ralph Lauren's $13 million donation to the Smithsonian
for the restoration of an 184-year-old American flag is indicative of the
growing trend in corporate and private philanthropy. A survey released by
the Chronicle of Philanthropy this week found that corporate giving has
risen over 20 percent in the last three years. This new private giving,
which has resulted in "logo-plastered exhibits", comes on the heels of large
cutbacks in government spending for the arts and humanities. While private
money has become essential for many institutions, the authors wonder if
"the new public-private-corporate balance (will) come out to something
approximating the overall need".
*********
...and we are outta here. Have a great weekend; we'll be back Monday.

Communications-related Headlines for 7/16/98

Legislation Update
Cities fight Web sales tax break (ChiTrib)
Senators Praise E-Rate Internet Filtering Bill (TelecomAM)
House Appropriations Committee Does Not Change
FCC Funding (TelecomAM)

Mergers
Justice Clears MCI Acquisition (WP)
Justice Department Clears MCI-WorldCom Merger
After Internet Sale (TelecomAM)
Illinois Group Opposes Whitacre's Arguments for
Ameritech-SBC (TelecomAM)

International
U.S., Mexico closing In on a Telephone Deal (WSJ)

InfoTech
Integrated system separates Sprint from
competitors (ChiTrib)
Sprint Is Laying Out Details Of Plan to Revamp Network (NYT)
Smart Devices Peep Into Your Grocery Cart (NYT)
Record and CD's? How Quaint (NYT)

Radio
On the Pulse of a People: Dr. Elmer Huerta Preaches What He
Practices, Dispensing On-Air Health Advice to
Latino Communities (WP)

Disabilities
Pictures come to their senses (ChiTrib)

Lifestyles
Survey Finds TV Is Major Casualty of Net Surfing (NYT)
www.How Smart Are You.quiz (NYT)

** Legislation Update **

Title: Cities fight Web sales tax break
Source: Chicago Tribune (Sec 3, p.1)
http://chicagotribune.com/textversion/article/0,1492,ART-11643,00.html
Author: Matt Berger (Washington Bureau)
Issue: Electronic Commerce
Description: The Internet Tax Freedom Act, if passed, would grant a three to
six-year moratorium on state and local taxes on products sold over the
Internet. The measure is designed to encourage electronic commerce, but
local and state governments fear that lost store-front sales could cost them
million of dollars. The National League of Cities (NLC) estimates as much
as $15 billion in lost sales tax revenues by 2002. "The federal government
is taking away the power of local government to get revenue," said the
executive director of NLC.

Title: Senators Praise E-Rate Internet Filtering Bill
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Legislation
Description: Amid rumors of a website that will show two 18-year-olds having
sex August 4, Senate Commerce Committee Chairman John McCain (R-AZ), Sens.
Pat Murray (D-WA), Joseph Lieberman (D-CT) and Dan Coats (R-IN) spoke on the
Senate floor in favor of S.1619, a bill that would require schools and
libraries receiving e-rate discounts to have Internet blocking and filtering
software.

Title: House Appropriations Committee Does Not Change FCC Funding
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Budget Issues/Legislation
Description: House Appropriations Committee July 15 approved a bill for
fiscal year 1999 funding for the FCC, National Telecommunications and
Information Administration (NTIA) and other agencies. The bill will cut FCC
funding by $5 million. Appropriations Committee Chairman Bob Livingston
(R-LA) is not concerned about House Commerce Committee Chairman Thomas
Biley's (R-VA) to Internet filtering language in a Dept of Labor & Dept of
Health and Human Services spending bill. Rep Livingston believes his
Committee has overlapping jurisdiction with the Commerce Committee.

** Mergers **

Title: Justice Clears MCI Acquisition
Source: Washington Post
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/16/179l-071698-idx.html
Author: Mike Mills
Issue: Mergers/Telephony
Description: Yesterday the Justice Department approved the $37 billion
acquisition of MCI Communications Corp. by WorldCom Inc. The Federal
Communications Commission will now rule on weather the "public interest"
will be served by the merger. Consumer groups worry about the merger's
effect on MCI and WorldCom's commitment to residential service. While
WorldCom has pledged to "not abandon MCI's residential long-distance
customers," senior official have expressed the company's desire to
exclusively focus on the more lucrative business market.

Title: Justice Department Clears MCI-WorldCom Merger After Internet Sale
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Merger
Description: The US Department of Justice has approved the merger of long
distance companies MCI and WorldCom. MCI, in the biggest merger divestiture
ever, sold its remaining Internet business to gain the approval. "The merger
as it was originally proposed would have given WorldCom/MCI a significant
proportion of the nation's Internet traffic, giving the company the ability
to cut off or reduce the quality of Internet services that it provided to
its rivals," said Justice Department Antitrust Chief Joel Klein. "The
divestiture benefits anyone who relies on the Internet because it preserves
competition among major Internet service providers." The Federal
Communications Commission must still approve the deal; that approval is
expected later this month.

Title: Illinois Group Opposes Whitacre's Arguments for Ameritech-SBC
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: The Illinois Partnership for Fair Telecommunications Policy
(IPFTP) cited a June complaint filed with the California utility regulatory
commission by the state's Office of Ratepayer Advocacy alleging Pacific Bell
(a subsidiary of SBC) is engaging in major and systematic residential
service marketing abuses. IPFTP says the effect of the SBC-PacTel merger is
evidence of why the Ameritech merger should be denied. Also, former Illinois
Commerce Commission Chairman Ellen Craig, now regulatory affairs vice
president for USN Communications, is suggesting that the ICC direct
Ameritech, SBC and new entrants to come to competition agreements as part of
the merger review. The ICC's rules allow for up to 11 months to review the
merger. [See more SBC-Ameritech stories at
http://www.benton.org/Library/State/media.html]

** International **

Title: U.S., Mexico closing In on a Telephone Deal
Source: Wall Street Journal (A12)
http://wsj.com/
Author: Jonathan Friedland
Issue: Long-Distance/International
Description: Javier Lozano, Mexico's new telecommunications czar, says he
has figured out a way to solve the dispute among Mexican and U.S.
long-distance carriers. In an interview. Lozano said that Telefonos de Mexico
SA (Telmex), Mexico's dominant carrier, and companies controlled by AT&T and
MCI, Avantel SA and Alestra SA, are in basic agreement on the terms of the
accord that will assure "clean and efficient competition." The accord, in a
nutshell, would substantially reduce the charges other carriers pay to
interconnect with Telmex and would largely do away with a 58 percent
surcharge embedded in those charges that was designed to help the former
monopoly meet obligations to provide service to Mexicans living in rural
areas." In exchange, Avantel and Alestra would partly reimburse Telmex for
the $422 million cost of improving its infrastructure which the new carriers
use to provide their services on a nationwide basis. Mr. Lozano hopes to
formally announce the accord by next month.

** InfoTech **

Title: Integrated system separates Sprint from competitors
Source: Chicago Tribune (Sec 3, p.3)
http://chicago.tribune.com
Author: Jon Van
Issue: Telephone
Description: At Internet World 98, in Chicago this week, Sprint is touting
its new Integrated On-demand Network (ION) which will provide voice, video,
and data services over one line. ION will be available to large businesses
in Chicago, New York and five other cities by the end of the year; smaller
businesses and some homes could enjoy the service as soon as late 1999. "The
other guys pay too much attention to the `last mile' problem of connecting
their networks to customers," said William T. Esrey, chairman of Sprint.
"But they haven't thought enough about what happens on their network. That's
where we're focused."

Title: Sprint Is Laying Out Details Of Plan to Revamp Network
Source: New York Times (D7)
http://www.nytimes.com/library/tech/98/07/biztech/articles/16sprint.html
Author: Seth Schiesel
Issue: Telephony
Description: Last month Sprint Corp. announced a program to revamp its
communications to provide integrated data and video information at high
speeds. Since that time it has made deals with Ameritech, BellSouth GTE and
SBC Communications to use those local companies' fiber optic networks within
cities. Sprint is continuing to try and negotiate deals with other large
competitive local phone providers, like AT&T's Teleport unit and WorldCom's
MFS operation, and the remaining Bell local phone companies. Sprint's
Chairman, William Esrey, said in an interview last week that the deals with
existing local phone companies could allow Sprint to reach 70 percent of its
target business customers. Sprint plans to begin offering large companies
access to the integrated network later this year and make the service
generally available to business customers near the middle of next year and
to consumers late in 1999.

Title: Smart Devices Peep Into Your Grocery Cart
Source: New York Times (E3)
http://www.nytimes.com/library/tech/98/07/circuits/articles/16geek.html
Author: Steven E. Brier
Issue: New Technology
Description: By using a combination of so-called loyalty cards, radio
frequency identification, smart cards and smart shopping carts, grocery
stores are working to personalize the shopping experience and provide the
shopper with more information while increasing sales. Some stores are using
electronic shelf cards to display price information. Others are using kiosks
with scanners so a customer can check on the price of an item of which they
are unsure. Shelf tags can be programmed to offer nutritional information
along with the price. And shopping carts are being developed that can scan
items placed in the cart so the shopper can keep a running tab, and the cart
can offer suggestions for other items, based on selections already made.
"This is all about providing more customer service in order for retailers to
gain a competitive advantage," said Ralph Martino, an IBM executive helping
the supermarkets with the technology. "Stores want to capture more of the
wallet share by being more knowledgeable about the customer." (What would
Mr. Whipple say now?)

Title: Record and CD's? How Quaint
Source: New York Times (B1,B6)
http://www.nytimes.com/library/tech/yr/mo/cyber/articles/16downloading-musi
c.html
Author: Jon Pareles
Issue: E-Commerce
Description: Electronic distribution is a big topic at Plug In '98, a
conference on music in the digital era taking place in NYC this weekend. If
transferring music over the Internet continues to increase in popularity,
eventually, home music collections could become obsolete and stores could
see their role reduced as consumers are able bypass the middlemen and access
music from central archives upon demand. Mark Mooradian, group director of
consumer content for Jupitor Communications, one of the groups organizing
the conference, says that Jupitor thinks record labels should aggressively
pursue digitally downloaded music. "He said digital distribution should be
important for its marketing value, to combat piracy and to reposition labels
as retail outlets." Individual musicians and independent labels see this
form of distribution as a way to deliver music directly to the listener.
"Record companies have a lock right now on how an artist can get music out
to a global audience," said Larry Rosen, the chairman of N2K, which owns the
online retail site of Music Boulevard as well as its own N2K label, which
makes some of its songs available for digital downloading. "With electronic
distribution of music, there's a break in that kind of power structure."

Title: Videophones, Evolve, Slowly
Source: New York Times (E1,E7)
http://www.nytimes.com/library/tech/98/07/circuits/articles/16vide.html
Author: Ian Austen
Issue: Telephony
Description: While the world's fist videophone was introduced by AT&T over
1964, companies are just begriming to realize that there are serious limits
to the market ably of this "Star Treck" technology. Today's videophone
technologies include both television-based and computer-based systems. "We
are very realistic: it's not a mass-market product," says Dainel Flohr of
C-Phone, a videophone manufacturer. "Everyone's not going to run out and get
one." Psychological barriers appear to be an important deferent to
mass-market success. "People who don't use videophones are worried about
having their privacy invaded", says Professor Mantei Tremaine who has
studied videophones for more than nine years, "People who did use them
feared they were invading someone else's privacy."

** Radio **

Title: On the Pulse of a People: Dr. Elmer Huerta Preaches What He
Practices, Dispensing On-Air Health Advice to Latino Communities
Source: Washington Post (C1, C10)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/16/232l-071698-idx.html
Author: Nicholas Day
Issue: Health/Minorities/Radio
Description: Dr. Elmer Huerta, founder and director of the Cancer Risk
Assessment and Screening Center at the Washington Hospital Center, is
probably sole carrier of the title 'national latino heath celebrity'.
Huerta's daily 2 minute health announcements, which air on radio stations
across the US and in 21 Latin American countries, attempt to provide the
latino community with simple prevention techniques that can help people
avoid or detect cancer and other serious deceases. The idea of using
broadcast media to disseminate his message came to Dr. Huerta is his native
Peru when he noticed that people knew little about health, but a lot about
soap operas and Top 40 music,"They were exposed to the media," he
says,"that's what clicked in my mind."

** Disabilities **

Title: Pictures come to their senses
Source: Chicago Tribune (Sec 3, p.1)
http://chicagotribune.com/textversion/article/0,1492,ART-11921,00.html
Author: Jeff Coen
Issue: Disabilities
Description: Captioning and video description -- services available to some
disabled people watching television -- is coming to General Cinema movie
theaters. "With this system, I got everything and had the same rich
experience as anyone else," said one user. "This means independence for me."
The technology was developed by Boston public television station WGBH in
cooperation with California's Digital Theater Systems. For now, Genera
Cinema is viewing the deployment of the technology "the right thing to do"
rather than a money-making venture. The DuPage Center for Independent Living
estimates that 2% of the population in the Chicago area suffer from vision
or hearing impairments.

** Lifestyles **

Title: Survey Finds TV Is Major Casualty of Net Surfing
Source: New York Times (E3)
http://www.nytimes.com/library/tech/98/07/circuits/articles/16ugee.html
Author: Matt Richtel
Issue: Internet Use
Description: A recent survey by Strategis Group, a Washington-based research
firm that studies patterns in telecommunications use, has found that
cyberspace is stealing time from watching TV, working, sleeping and
exercise. But the activity being most effected is television- and
VCR-watching. Of 500 Net users surveyed, nearly 65 percent said they had
sacrificed time in front of the television for time in front of the
computer. Forty-eight percent reported they spent less time reading and 29
percent said they slept less. What does this mean? According to John
Zahurancik, director of Internet and telephony at Strategis Group, said the
findings show that "The Net is becoming a mainstream medium. It is a
competition to all these other traditional sources of entertainment." Allen
Goldberg, vice president for business development at Relevant Knowledge, a
research company based in Atlanta, points out that it took 40 years for
radio to gain 50 million domestic listeners and 13 years for television and
cable TV to acquire the same number of viewers. While Goldberg acknowledges
that the population is larger now, he said it is noteworthy that it has
taken only four years for the Web to reach the same plateau.

Title: www.How Smart Are You.quiz
Source: New York Times (E1,E7)
http://www.nytimes.com/library/tech/98/07/circuits/articles/16quiz.html
Author: Katie Hafner
Issue: Internet Use/Lifestyle
Description: The Internet has become a breeding ground for thousands of
tests you can administer to yourself. These tests range in everything from
questions purported to test your intelligence and emotional stability, to
your predisposition towards hypochondria, alcoholism, attention deficit
disorder, etc. The interesting thing is that many people seem to enjoy
taking these tests "created by psychometricians, professional and
otherwise." But there is something (how's that for an ambiguous word?)
alluring about these optional tests that will rank you in terms of your
genius or lovability. There are already a number of quizzes available in
magazines, on the radio and television. And with such tests now available on
the Web, there are "no visible proctors or stopwatches, and no one to raise
an eyebrow at your response to a question on sexual habits. For instance,
you might scoff a Mensa, the organization of self-anointed geniuses, but it
is hard to turn down the chance to spend three minutes on a test to see if
you would be admitted."
*********

Communications-related Headlines for 7/15/98

Universal Service
GAO to Tell Senate Panel that E-Rate
Process Should Change (TelecomAM)
Wireless Industry Begins Push for Universal
Service Support (TelecomAM)

Mergers
SBC, Ameritech tout merger to ICC (ChiTrib)
SBC and Ameritech Square Off Against Merger
Opponents in Illinois (TelecomAM)
C&W to Buy MCI Internet Assets, Easing Way for
WorldCom Deal (WSJ)

Jobs
Thinking Ahead (FCC)

Internet
Teaching Grown-ups How to Surf (CyberTimes)
Report Details Problems With Commercial E-Mail (CyberTimes)

Spectrum
FCC to Sell Licenses Allowing Companies to Track Vehicles
(WSJ)

Technology
Taking a Step Toward Converting The Home Into a Supercomputer
(NYT)

Advertising/Religion/Minorities
Religious Right Targets Homosexuality (WP)

** Universal Service **

Title: GAO to Tell Senate Panel that E-Rate Process Should Change
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: At a Senate Commerce Committee hearing scheduled for July 16,
the General Accounting Office (GAO) is expected to suggest that the Schools
and Library Corporation (SLC) needs to review its evaluation procedures for
e-rate applicants -- especially determining when certain SLC audits and
examinations should occur. Critics of the SLC say the GAO recommendations
reveal sloppy procedures on part of SLC while the program's supporters say
the recommendations don't constitute a "smoking gun." TelecomAM reports,
"Senate Commerce Committee Chairman John McCain (R-AZ) has charged that the
SLC is a large bureaucracy, a perception expected to be challenged at the
hearing by e-rate supporters. The SLC has 15 permanent staff members, 66
contractors who evaluate applications and answer technical questions, and a
fluctuating number of data-entry workers." In other e-rate news, a number of
House members are expected to make speeches supporting the e-rate starting
July 15; a more formal save the erate campaign will start next week.

Title: Wireless Industry Begins Push for Universal Service Support
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: At a 7/14 briefing by the Cellular Telecommunications Industry
Association (CTIA) and Western Wireless, the industry announced plans of a
FCC filing this month that will argue that the Commission could cut the size
of the high-cost universal service fund nearly in half if it subsidized
wireless carriers, instead of traditional wireline companies, for providing
phone service in rural areas. The FCC's universal service rules, adopted
last year, allow wireless carriers to receive support for serving high-cost
areas, but leaves the details to the states. On their side, states have been
slow to move of on the issue -- some accusing local telephone companies of
exerting political pressure.

** Mergers **

Title: SBC, Ameritech tout merger to ICC
Source: Chicago Tribune (Sec 3, p.4)
http://chicagotribune.com/textversion/article/0,1492,ART-11868,00.html
Author: Cornelia Grumman & Jon Van
Issue: Mergers
Description: SBC and Ameritech gave a sneak preview of their merger filing
which is expected at state and federal regulatory commissions within the
next two weeks. The merger will mean 1) competition in Illinois that
customers will enjoy as more choice, not lower rates, 2) low-volume
residential customers will be "the lowest creatures on the
telecommunications food chain" (Trib's words), 3) a combined SBC-Ameritech
will be a global competitor that will offer local service in the 50 biggest
markets in the US, and 4) when the new company starts competing in other US
markets, other regional phone companies will reciprocate and enter the
Chicago market. [A longer summary of the meeting will be posted on Benton's
email lists later today]

Title: SBC and Ameritech Square Off Against Merger Opponents in Illinois
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers, oh we get mergers, we get mergers everyday...
Description: The Illinois Commerce Commission held an open meeting to
discuss the issues surrounding the proposed SBC-Ameritech merger. The
company created by the merger, officials from SBC and Ameritech said, will
be a new global telecom carrier that will be a more effective competitor in
national and global markets. Critics said the merger will delay competition
in the new company's region. [A longer summary of the meeting will be posted
on Benton's email lists later today]

Title: C&W to Buy MCI Internet Assets, Easing Way for WorldCom Deal
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Jared Sandberg & Stephanie N. Mehta
Issue: Merger
Description: MCI Communications Corp. has reached an agreement to sell its
Internet assets to Cable & Wireless PLC of London for around $1.6 billion in
cash.

** Jobs **

Title: Thinking Ahead
Source: FCC
http://www.fcc.gov/Speeches/Kennard/spwek821.html
Author: Chairman Kennard
Issue: Jobs/Minorities
Description: Chairman Kennard's Speech "Thinking Ahead" before the NAACP
1998 Annual Convention, Telecommunications Forum, in Atlanta, GA. "The civil
rights challenge for the next century is to make sure that African-Americans
-- and all Americans -- share in the benefits of the Information Age....We
must have access to technology, employment opportunities and opportunities
for ownership."

** Internet **

Title: Teaching Grown-ups How to Surf
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/education/15education.html
Author: Pamela Mendels
Issue: Student Participation in Technology
Description: Libraries, schools and community groups around the country are
turning to Internet savvy young people to help bridge the generation gap and
teach neophytes "to pick up" technology basics. "I think it's a great idea,"
said Karen W. Smith, executive director of the Tech Corps, a national
non-profit volunteer group based in Bedford, MA that seeks to help schools
integrate new technology into the classroom. "Anytime kids are in a
situation that says 'We value what you know,' that's a very good message.
These programs also give kids the knowledge that what they are learning is
transferable to a marketable talent." It is difficult to say how many
programs that involve teenagers teaching grown-ups are in place and what
their longterm effects will be. But organizers of a Families Online program
at Martin County Library System in Stuart FL are hoping that one effect of
their project will be to forge closer ties between adults and young people.
And Edison Freire, who runs bilingual teen/adult program at Edison Fareira
High School in Philadelphia, says: "I am trying to get my students to think
of themselves as leaders, and one way to do that is to let them work with
adults."

Title: Report Details Problems With Commercial E-Mail
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/15email.html
Author: Jerry Clausing
Issue: Internet/Spam
Description: The Federal Trade Commission released a report yesterday on the
issue of bulk commercial email. The report, prepared by an ad-hoc group that
included major Internet companies, Internet service providers, organizations
opposed to commercial email and representatives of the companies that send
it, recommends that companies that send this type of unsolicited email
should be prohibited from trying to disguise the content or origin of their
messages, which would allow people to better filter through their incoming
email. The report, citing free speech issues, stops short of calling for a
complete ban of unsolicited commercial email, also known as spam. However,
the report lacks any "strong" recommendations for how to cut back on the
increasing flow of spam, a result of the inability of such a diverse group
to reach an agreement on which, if any, proposals currently pending in
Congress should be endorsed.

** Spectrum **

Title: FCC to Sell Licenses Allowing Companies to Track Vehicles
Source: Wall Street Journal (B6)
http://wsj.com/
Author: WSJ Staff Reporter
Issue: Spectrum
Description: The Federal Communications Commission plans to auction 528
licenses by the end of the year for a service known as the "location and
monitoring service," or LMS. The service would allow trucking companies to
use the airwaves to keep track of vehicles in their fleet.

** Technology **

Title: Taking a Step Toward Converting The Home Into a Supercomputer
Source: New York Times (A1,D4)
http://www.nytimes.com/library/tech/98/07/biztech/articles/15sun.html
Author: John Markoff
Issue: New Technology
Description: Sun Microsystems plans today to unveil the first consumer
version of distributed computing technology, a product called Jini.
Distributed computing is "the ability to divide a large set of computer
instructions into multiple small parts, each of which is processed by a
different machine within a network of computers." The computer industry is
betting that instead of consumers wanting to turn their laptops into a
supercomputer, more will be interested in the technology's ability to endow
consumer appliances. Jini uses Sun's Java programming language to "allow
computers and other devices to cooperate, sometimes by sharing instructions
or information, sometimes by actually dividing a program into parts and
spreading the computation work across several computers." Advocates of
distributed computing predict that over the next few years today's desktop
computer will evolve from a self-sufficient machine, that must hold
everything it needs for any given job, into a social machine, that will
interact automatically with not only other computers but with myriad
consumer devices.

Advertising/Religion/Minorities

Title: Religious Right Targets Homosexuality
Source: Washington Post (A1, A13)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/15/146l-071598-idx.h...
Author: Hanna Rosin and Thomas B.Edstall
Issue: Advertising/Religion/Minorities
Description: The Christian Coalition and Family Research Council are two of
the more well-known members in a coalition of 15 conservative religious
groups responsible for running full-page ads in national newspapers
proclaiming that homosexuality is a disease which can be cured. These
advertisements, which have run in the New York Times, The Washington Post
and USA Today, are part the religious right's new high-profile campaign
against homosexuality. In addition to the ads, the campaign also includes
lobbying efforts that pressure politicians to take public stands against
homosexuality. Responding to the campaign, gay rights groups have placed
their own ads in today's papers."We want to make it clear that homosexuality
is ok," says Einnie Stachelberg, political director for the Human Rights
Campaign, "that gay and lesbian people have parents who love them and can
even be people of faith."
*********

Communications-related Headlines for 7/14/98

Universal Service
Bliley Asks Appropriations Panel to Pull Filtering Bill
(TelecomAM)

Education/Gender
Computer Classes Show Gender Gap (WP)

Campaign Reform
Not a Danger to Free Speech (WP)

Email
Various Firms, Groups to Offer Ways To Curb Unsolicited E-Mail
on Internet (WSJ)

Merger
MCI Reported To Be Near Full Internet Sale (NYT)
Cable & Wireless, MCI Reach Deal (WP)

Lifestyles
On the Heels of Soccer's World Cup and Baseball's All-Star Game,
A Big Pitch Begins for the N.F.L. (NYT)

** Universal Service **

Title: Bliley Asks Appropriations Panel to Pull Filtering Bill
Source: Telecom AM
http://capitol.cappubs.com/am/
Issue: E-Rate/Censorship
Description: "House Commerce Committee Chairman Thomas Bliley (R-VA) asked
the House Appropriations Committee yesterday not to consider Internet
filtering language at its mark-up of Labor-HHS funding legislation today,
saying 'constitutional and administrative' issues have been raised. The
amendment, by Rep. Ernest Istook (R-OK), would require recipients of e-rate
funds to block out 'obscene' online material and set up mechanisms for
revolking funding if schools or libraries failed to do so. The
Appropriations Labor-HHS Subcommittee approved the measure late last month."
In a letter to the House Appropriations Committee Chairman, Bob Livingsont
(R-LA), Bliley said that such policy questions are "outside of the
appropriations process." He also said that Istook's proposed solution
"raises several difficult constitutional and administrative questions, all
of which the Commerce Committee is presently reviewing."

** Education/Gender **

Title: Computer Classes Show Gender Gap
Source: Washington Post (B1,B5)
http://www.washingtonpost.com/wp-srv/digest/local1.htm/
Author: Victoria Bening
Issue: Education/Gender
Description: A recent report, prepared by the Fairfax School Board's Human
Relations Advisory Committee, shows that girls only make up 26 percent of
the students in computer science classes at Fairfax County high schools. The
alarming gender gap in Fairfax mirrors a national trend of young female
underepresentation in high-tech classes. The Fairfax study found that
minorities also are underepresented in computer science classes. School
officials are very concerned about these findings and are working to
develop strategies to reverse this trend. According to the report, "the
effects of these course choices, which often become career choices, can be
seen in a lifetime of lower earnings and lower retirement benefits for a
majority of women." Fairfax School Superintendent Daniel A. Domenech said
that "We need to expose more girls and minorities to these kinds of courses
and the benefits of pursuing these kinds of studies."

** Campaign Reform **

Title: Not a Danger to Free Speech
Source: Washington Post (Op-Ed, A15)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/14/013l-071498-idx.htm
Author: Thomas E. Mann(Brookings Institution) and Norman J.Ornstein(American
Enterprise Institute)
Issue: Campaign Reform
Description: In disagreement with the ACLU's position on
McCain-Feingold/Shays-Meehan legislation, the authors assert that regulation
of "issue advocacy" ads will not pose a threat to the free speech of any
individual or group. In response to ACLU charges that the bill would
"establish limits that effectively bar any individual or organization from
explicitly criticizing a public official -- perhaps the single most
important type of free speech in our democracy -- when the official is up
for reelection within 60 days," the authors claim that the bill would do no
such thing. "At most, under certain circumstances, it will have to disclose
its expenditures for communications and the source of financing and refrain
from serving as a conduit for corporate or union funds. In other words if
they engage in electioneering near the election, they will have to play by
the same rules governing independent expenditures as everyone else".

** Email **

Title: Various Firms, Groups to Offer Ways To Curb Unsolicited E-Mail on
Internet
Source: Wall Street Journal (B6)
http://wsj.com/
Author: John Simons
Issue: Email
Description: A group of technology companies and consumer groups will
recommend ways to stem the flow of unsolicited commercial email on the
Internet to the Federal trade Commission today. The proposal represents the
"first broad agreement of the issue between Internet service providers and
companies that distribute the global network's nagging junk-mail
equivalent." The companies and groups, which include, America Online Inc.,
International Business Machines Corp., Microsoft Corp., and the Center for
Democracy and Technology, a Washington-based technology advocacy group, will
recommend "a program of industry self-regulation to control commercial email
combined with some oversight by the FTC."

** Merger **

Title: MCI Reported To Be Near Full Internet Sale
Source: New York Times (D1,D4)
http://www.nytimes.com/library/tech/98/07/biztech/articles/14mci-interne...
Author: Seth Schiesel
Title: Cable & Wireless, MCI Reach Deal
Source: Washington Post (C1,C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/14/063l-071498-idx.html
Author: Mike Mills
Issue: Mergers
Description: MCI Communications Sorp. is close to reaching an agreement to
sell its entire Internet business to Cable and Wireless PLC for about
$1.5-$2 billion is cash, said executives close to the negotiations
yesterday. A deal between the two companies is expected to be announced
later this week. MCI is selling all of its Internet assets, valued at $2
billion, as a result of the European Union's concerns that the two companies
combined would have unfair control of Internet traffic. The deal would clear
the way for the Justice Dept. to approve the $37 billion acquisition of MCI
by WorldCom Inc.

** Lifestyles **

Title: On the Heels of Soccer's World Cup and Baseball's All-Star Game,
A Big Pitch Begins for the N.F.L.
Source: New York Times (D6)
http://www.nytimes.com/yr/mo/day/news/financial/nfl-ad-column.html
Author: Stuart Elliott
Issue: Sports Lifestyles
Description: Since our nation definitely needs more advertising to stimulate
its appetite for National Football League games, the annual advertising
offensive will begin almost two months earlier than usual and involve almost
four times as many promotional commercials as before. The increased exposure
for the NFL's sales pitch are a result of the league's super-lucrative
contract with the broadcast and cable television networks for the 1998-99
season. "Our network partners are giving us a significant amount of
additional time" to help "manage an ongoing dialogue with our fan base,"
said Howard Handler senior vice president for marketing and fan development
at NFL Properties in NY. "The message we want to send through everything is
that the NFL provides a thrill ride," Handler said, "an adrenaline-charged
roller coaster ride." [KAPOW...BLAM...SPLAT...ZAP...SWACK (add your favorite
font) -- ahhhhh, the American dream]

*********

Communications-related Headlines for 7/13/98

Telephone Regulation
Justice Dept. vs. the Bells (NYT)
Process to Accelerate Resolution of Market Disputes (FCC)
In-Region, Interlata Services in Louisiana by Bellsouth (FCC)

Television
FCC Tackles Digital Must-Carry (B&C)
Digital Broadcast Signal Carriage Issues (FCC)
National Networks Need Local Profits (B&C)
Role Confusion in TV News (B&C)

Internet
Library May Not Have to Filter (CyberTimes)
Canadian Court Ruling Gets Identities of Internet-Message
Writers Revealed (WSJ)
RealNetwork Upgrades Streaming, Content (B&C)
Real Networks Hopes New Streaming Software Will Open Up Medium (NYT)
The Neighborhood Business (NYT)
Protecting Privacy Online (WP)
Online With Professors (WP)

Ownership
BET to Establish a Film Unit Aimed at Black Urban Market (NYT)

Advertising
Ad Giant Forms Interactive Division (NYT)
ESPN Uses Virtual Ads for Baseball (B&C)

Copyright
In Defiance of the Public Interest (WP)

Philanthropy
Staggering Bequests by Unassuming Couple (NYT)

** Telephone Regulation **

Title: Justice Dept. vs. the Bells
Source: New York Times (C3)
http://www.nytimes.com/yr/mo/day/news/financial/tech-column.html
Author: Seth Schiesel
Issue: Telephone Regulation
Description: The headline grabbers may be the mergers, but the most
important telecommunications developments happen in court as the baby Bells
battle with the Department of Justice "over the soul of the
Telecommunications Act of 1996." In New Orleans, the Court of Appeals for
the Fifth Circuit is hearing arguments on a lower courts decision that would
allow Baby Bells to enter the $80 billion long distance market. The case
could be headed to Supreme Court and may be unresolved for the next year.
"We never want a situation where Congress can single out for penalties any
single group," said James Ellis, SBC's general counsel. "If it can happen to
us, they can do it to less-advantaged groups."

Title: Process to Accelerate Resolution of Market Disputes
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8046.html
Issue: Telephone Regulation
Description: Noting that the growth of telecommunications competition
depends upon the prompt resolution of disputes between market participants,
the FCC adopted a new, accelerated approach to resolving complaints
involving telephone companies. The action will allow the FCC to respond to
market disputes effectively and with the speed that will be necessary in an
increasingly competitive environment. The new procedures should benefit
consumers and the industry alike by safeguarding fair competition in the
telecommunications market.

Title: In-Region, Interlata Services in Louisiana by Bellsouth
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da981364.html
Issue: Long Distance
Description: On July 9, 1998, BellSouth Corporation, BellSouth
Telecommunications, Inc., and BellSouth Long Distance, Inc. (collectively,
BellSouth) filed an application for authorization to provide in-region,
interLATA service in Louisiana, pursuant to section 271 of the
Communications Act of 1934, as amended (the Act), 47 U.S.C.

Communications-related Headlines for 7/10/98

Telecom Act of 1996
Appeals Court Hears Telecom Act Appeal (TelecomAM)

Mergers
Ohio PUC Asked to Begin SBC-Ameritech Merger Review
(TelecomAM)
Illinois Schedules Workshop on SBC-Ameritech Merger
(TelecomAM)

Bandwidth
FCC Hears Disputes Over Broadband Deployment at
En Banc Hearing (TelecomAM)

Internet
Domain Names as Intellectual Property (CyberTimes)
Booking the Future (WP)

Television
Afghan Rulers Planning to Smash TV Sets (NYT)

Advertising
Advertisers Aggressively Court Hispanic Consumers (NYT)

Journalism
Journalism Goes Hollywood, and Hollywood Is Reading (NYT)

** Telecom Act of 1996 **

Title: Appeals Court Hears Telecom Act Appeal
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Telecom Act of 1996
Description: Baby Bell SBC is challenging the constitutionality of the
Telecommunications Act of 1996. Specifically, SBC is arguing that Sections
271-75 of the 1996 Act constitute a bill of attainder, which is an
unconstitutional use of legislative power to single out individuals for
punishment. Assistant Attorney Gen. Joel Klein argued the Government's side
before the 5th U.S. Appeals Court's Judge Grady Jolly saying the sections
are "forward-looking regulation" rather than a bill of attainder. AAG Klein
also said that the provisions -- which create the process by which Bells are
allowed into the long distance market -- could not be seen as punishment
since the Bells are better off under the 1996 Act than the AT&T consent
decree which barred them from providing long distance service. Laurence
Tribe, arguing for SBC, said that's not true because Judge Greene -- who had
jurisdiction over the consent degree -- could have lifted the consent decree
or offered waivers while the Bell Companies now are under the FCC's thumb
forever. Mr. Tribe said that even if there wasn't punishment, the 1996 Act
still would violates the separation of powers provisions of the Constitution.

** Mergers **

Title: Ohio PUC Asked to Begin SBC-Ameritech Merger Review
Illinois Schedules Workshop on SBC-Ameritech Merger
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: The American Association of Retired Persons (AARP) and the
Edgemont Neighborhood Coalition of Dayton, an Ohio consumer group
representing low-income persons, have petitioned the Ohio Public Utilities
Commission (PUC) to immediately open an investigation into the proposed
merger of Ameritech into SBC Communications, TelecomAM reports. The groups
oppose the merger and argue that SBC and Ameritech both have a record of
"bad attitudes" toward competition and the public interest. The groups
believe that the merger threatens competition and would mean higher prices
and reduced quality of service. The groups want the PUC to begin a
proceeding now so that there is time to gather evidence and hold hearings.
They fear a delay that could cause a "rush to judgement" that won't
allow time for thorough review. On July 9, TelecomAM reported that the
Illinois Commerce Commission will hold a workshop on the merger on July 14.
[Additional information and a link to the agenda for the meeting can be
found at http://icc.state.il.us/icc/News/PR/98/0708.htm] Ohio, Illinois
and Indiana are the three Ameritech states whose approval is needed for
merger completion.

** Bandwidth **

Title: FCC Hears Disputes Over Broadband Deployment at En Banc Hearing
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Bandwidth/Infrastructure
Description: "Broadband is the next great frontier for telecommunications
policy," said FCC Chairman at an en banc meeting of the Commission July 9.
As cable, wireless and common carriers begin to offer similar services to
customers, the FCC must address the separate regulations that govern each
section of the telecom industry. A majority of the industry executives at
meeting offered this advise to the Commission: 1) hold incumbent carriers to
the 14-point checklist in the Telecom Act for entry into the long distance
market, 2) reject the Baby Bells' requests for relief under Section 706 of
the Telecom Act, 3) take minimal actions to encourage the marketplace to
develop new services to meet the increasing demands for broadband access,
and 4) assure that all competitors get access to facilities at the same
prices as incumbents.

** Internet **

Title: Domain Names as Intellectual Property
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/10domain.html
Author: Jerry Clausing
Issue: Domain Names
Description: The World Intellectual Property Organization (WIPO) in Geneva
announced this week that it will begin formulating recommendations on the
"contentious trademark issues associated with Internet domain names. The
WIPO has issued a request for comments on how to balance the rights of
trademark holders against the general public, and how to establish an
international dispute resolution process for parties fighting over rights to
coveted Internet domain names."

Title: Booking the Future
Source: Washington Post (A1,A20)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/10/160l-071098-idx.html
Author: David Streitfeld
Issue: E-Commerce
Description: There seems to be no stopping the online book giant,
Amazon.com, who's stock closed at $105.5 yesterday, up from only $11 a year
ago. Despite predictions that computers would kill traditional publishing,
it is old-fashion books that are the Internet's hottest items. "Those of us
that like post modern ironic humor really appreciate the fact that the most
successful e-commerce is the product that this medium was supposed to
eliminate," said Amazon Vice President Rick Ayre. With the advantage of
being able to order books only when customers want them and having no fixed
costs for real estate or employees, Amazon poses a real threat to
independent booksellers and superstores alike. Online booksellers are the
"future of publishing" according to Random House editor Jason Epstein. "The
present system is extremely inefficient, especially for the more specialized
kind of book that can't easily be identified or categorized by the chain
stores' computers." Epstein adds, "It's increasingly difficult to publish
those books, because it's hard to put them in the hands of their potential
readers. As the Internet evolves, it will begin to solve that problem."

** Television **

Title: Afghan Rulers Planning to Smash TV Sets
Source: New York Times (A7)
http://www.nytimes.com/yr/mo/day/news/world/afghanisan.html
Author: Barbara Crossette
Issue: Television
Description: The people of Afghanistan have 15 days to get rid of their
televisions, VCRs, video tapes, and satellite dishes. The country's Minister
for the Prevention of Vice and the Promotion of Virtue has said that
television and video are "the cause of corruption in this society." Leonard
Sussman, a scholar of international communications at Freedom House, says
the Afghan rulers are "killing urban communication. It is really a reversion
to a primitive lifestyle. This is about the worst for one special reason:
[other countries] demand absolute control of the content of broadcasting.
But no other country wipes out the delivery system."

** Advertising **

Title: Advertisers Aggressively Court Hispanic Consumers
Source: New York Times
http://www.nytimes.com/yr/mo/day/news/financial/hispanics-ad-column.html
Author: Carol Marie Cropper
Issue: Advertising
Description: According to Hispanic Business Magazine, advertisers spend $1.4
billion trying to reach Spanish-speaking and bilingual Hispanic consumers
last year. That amount represents four times the total spent in 1985 and
more than double the 1990 total. The number remains less than 1% of the
total $186.8 billion spent on advertising in 1997. "People are beginning to
recognize that the Hispanic population is very large," said Dolores Kunda,
director of Hispanic marketing at Leo Burnett USA and a board member of the
Association of Hispanic Advertising Agencies. "The Hispanic population is as
large as the population of Canada," she said, referring to the perhaps 30
million people of Hispanic descent now living in the nation. 1995 census
figures estimated the Hispanic population at just under 10% of the US total.
The Census Bureau predicts that will rise to over 11% in 2000 and to nearly
14% by 2010 -- replacing blacks as the largest minority.

** Journalism **

Title: Journalism Goes Hollywood, and Hollywood Is Reading
Source: New York Times (C5)
http://www.nytimes.com/yr/mo/day/news/financial/mags-movies.html
Author: James Sterngold
Issue: Journalism
Description: Journalism and Hollywood are melding as magazine articles have
become "the source du jour for movies." The trend has the potential to warp
journalistic principles and to create conflicts of interest within media
conglomerates. "The journalist is focused on the economic demands, not on
the demands of the information he or she is working with," said Bill Kovach,
the director of Harvard University's Nieman Foundation. New Journalism -- a
school in which writers are given more license to re-create scenes -- has
oriented many publications toward compelling yarns rather than dry
expositions of fact. These yarns are what is attracting movie studios.
Hollywood loves magazine stories, he said, because "they have a whiff of
authenticity" and that legitimizes the story ideas.
*********
...and we're outta here.
Go France! Go Brazil! - World Cup wrap-up frenzy - rah!yah!rah!

Communications-related Headlines for 7/9/98

Television
Afghanistan Islamists ban TVs, videos (ChiTrib)
U.S. Starts Paid Ad Campaign Against Drugs (NYT)

Internet
Internet Freedom (WP)
How Reliable Are Online Surveys? (CyberTimes)
Can the Internet Cure the Common Cold? (NYT)

Mergers
Europe Clears MCI-WorldCom Merger, With Internet Conditions
(TelecomAM)
EU Backs Merger of WorldCom, MCI (WP)
EU Commission Approves WorldCom-MCI Marriage (WSJ)

Wireless
ArrayComm Pushes a Technology to Wise Up Wireless (WSJ)

Privacy
Plan to Sell Travel Data Raises Privacy Concerns (WSJ)

** Television **

Title: Afghanistan Islamists ban TVs, videos
Source: Chicago Tribune (Sec 1, p.12)
http://chicago.tribune.com/textversion/article/0,1492,SAV-9807090134,00....
Author: Reuters
Issue: Television
Description: Afghans have 15 days to get rid of their TVs, video players and
satellite receivers; the Taliban Islamic movement has found them
inadmissible to Islamic morality. The Taliban had already ended television
broadcasts in the two-thirds of the nation that it controls, but a deputy
minister in the Department for Prevention of Vice and Promotion of Virtue
said people continued to watch video tapes and foreign television channels
received on satellite dishes. [Looks like that "Turn Off Your TV" movement
is really taking off.]

Title: U.S. Starts Paid Ad Campaign Against Drugs
Source: New York Times
http://www.nytimes.com/yr/mo/day/news/financial/drugs-ad-column.html
Author: Courtney Kane
Issue: Advertising
Description: The largest Government-financed social marketing effort to date
will be kicked off July 9 by President Clinton and Gen Barry McCaffrey, the
director of the Office of National Drug Control Policy. The $195 million
campaign will involve paid ads on television, radio, print, billboards, and
interactive media. "For the first time we will be able to buy the time slots
in the best media vehicles," said Thomas Hedrick, vice chairman of the
Partnership for a Drug-Free America in New York, "just like Nike or
McDonald's or Pepsi does on a regular basis." "We're going to pay for the
precise placement we need to get the right message to the right audience,"
Hedrick said, "with enough frequency to change attitudes and, over time,
drug behavior." The first TV ad will appear at approximately 9:15pm
(eastern) tonight on all five networks.

** Internet **

Title: Internet Freedom
Source: Washington Post (OpEd, A19)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/09/113l-070998-idx.html
Author: Charlene Barshefsky (U.S. Trade Representative)
Issue: Electronic Commerce
Description: Today, of all business equipment investment in America, 45
percent is in information technology. These figures may make one initially
think of the growth of technology leaders and large companies. However,
Barshefsky points out that what we may find is that the benefits of
electronic commerce will be greatest for those Americans that are currently
shut out of trade because they are located in inner cities, rural areas or
reservations -- or simply lack the financial means to get started. With the
information highway, "small businesses, individuals with good ideas or rural
cooperatives can find international customers and products in seconds at
almost no cost." At this time, people can conduct a variety of business
transactions basically for free -- "because today, in trade terms, the
Internet is pristine. Today there are no customs on cross-border telephone
calls, fax messages or computer data links. This duty-free treatment
includes electronic transmission on the Internet...But there is a threat to
these bright prospects." Governments may see electronic commerce as a threat
to domestic special interests instead of a way to increase productivity and
help entire nations prosper. Or they may see it as an opportunity for
revenue through taxes and tariffs. "If we act now, we can prevent this, and
the early signs are good....With hard work, we will preserve the Internet as a
duty-free zone for commerce, and set out a work program that eliminates
non-tariff measures, unnecessary paperwork and needless
bureaucracy...Society will be more mobile and offer more opportunity for
even impoverished citizens to become entrepreneurs...It is an opportunity we
will get only once, and by acting now, we can take advantage of it."

Title: How Reliable Are Online Surveys?
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/09poll.html
Author: Matt Richtel
Issue: Internet Use/Surveys
Description: Every week news junkies can, and do, participate in dozens of
polls and surveys posted online. This raises the question: "Which, if any,
of these polls can be taken seriously?" According to a "handful" of
marketing experts, the answer is "not many." For the most part, they say
that polls are marketing ploys designed to attract traffic. Dan Murphy,
director of research and analysis for Relevant Knowledge, a marketing
research company, points out that the more participants a site can pull in
equals more page views and, in turn, advertising revenue. "It's methodical.
It's a business model," said Murphy. Yet some scientists and polling
organizations say that you can gain some valid assessment of an issue by
polling online. One of the inherent advantages of conducting surveys in
cyberspace is the medium's wide reach and affordability. Harris Black
International, publisher of Harris telephone polls, believes that online
polling, if done correctly, can be statistically valid. Leonard Bayer, a
chief scientists for Harris, said that the company believes that it has a
good enough understanding of the population on the Internet to find samples
that are representative of the population at large. "If we need to reach
10,000 people with a particular medical condition, say multiple sclerosis,
we can do so virtually overnight," Bayer said. Before, "it was unaffordable"
to do so, he said.

Title: Can the Internet Cure the Common Cold?
Source: New York Times (D1)
http://www.nytimes.com/library/tech/98/07/circuits/articles/09heal.html
Author: Katie Hafner
Issue: Telehealth
Description: "Being a highly involved patient was possible before, but only
for the most dedicated, committed people," said Dr. Tom Ferguson, editor and
publisher of The Ferguson Report, a newsletter about online health
information based in Austin, Tex. "Now all the information is available to
anyone with an Internet connection." There are more than 10,000 health
information sites available online -- bringing about an unparalleled shift
in the way doctors and patients interact. At best, the information online
can elevate a doctor-patient relationship into a partnership and save lives.
At worst misleading, inaccurate information can waste a doctor's time,
create false hopes for patients, and put a life in danger.

** Mergers **

Title: Europe Clears MCI-WorldCom Merger, With Internet Conditions
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: Pending the sale of MCI's Internet assets and business
activities to a
buyer acceptable to the European Commission (EC) and the Department of
Justice (DoJ), EC has approved the merger of long distance carriers MCI and
WorldCom. European Competition
Commissioner Karel van Miert said as part of the conditions for approving
the sale, the two companies also agreed they would not compete with the
eventual buyer of the Internet assets. The DoJ is still reviewing the deal
and a decision is expected soon.

Title: EU Backs Merger of WorldCom, MCI
Source: Washington Post (E2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/09/198l-070998-idx.html
Author: Mike Mills
Title: EU Commission Approves WorldCom-MCI Marriage
Source: Wall Street Journal (B7)
http://wsj.com/
Author: WSJ Staff Writer
Issue: Mergers
Description: The European Commission yesterday granted conditional approval
to merger of WorldCom Inc. and MCI Communications Corp. The Commission, the
European Union's executive body, affirmed the merger on the condition that
MCI sell its entire Internet business. The EU's announcement clears the way
for approval by the U.S. Justice Dept. as early as next week.

** Wireless **

Title: ArrayComm Pushes a Technology to Wise Up Wireless
Source: Wall Street Journal (B4)
http://wsj.com/
Author: Quentin Hardy
Issue: Wireless
Description: Martin Cooper, who built the first portable cell phone 26 years
ago when he was at Motorola, now owns a start-up called ArrayComm Inc.,
based in San Jose, Calif. Cooper's group is working on developing and
selling a "smart" antenna for wireless networks. For all of the advances in
wireless systems, antennas have changed relatively little over the years.
Cooper thinks it is now time that antennas were made that are capable of
interacting with cellular users to pack more customers onto a given system.
The company says that by targeting the transmission and reception of calls
more precisely it can reduce the amount of interference and the amount of
spectrum consumed so more people can get on the network at a time.

** Privacy **

Title: Plan to Sell Travel Data Raises Privacy Concerns
Source: Washington Post (E2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/09/204l-070998-idx.html
Author: Robert O'Harrow Jr.
Issue: Privacy
Description: The Sabre Group, the nation's largest airline reservation
system, may soon sell information about passengers' destinations, hotel
accommodations and other travel arrangements under a new marketing proposal.
The plan would use data warehouses -- "sophisticate computer technology that
vastly increases the speed of information processing" -- in a variety of
promotions. "We are looking at potential marketing and business
opportunities with data warehousing," said company spokeswoman Jennifer
Hudson. "We can use these types of projects to help travelers get better
deals." But Sabre's plans have raised questions about privacy, in part
because as information is collected, marketers and others could potentially
track an individual. "This brings to light the fact that airlines in
particular have a ton of information. They have where you're traveling to,
who you're traveling with, the car you drive, what you're eating," said
Deirdre Mulligan, staff counsel at the Center for Democracy and Technology.
"This is personal information." Sabre released a statement yesterday after
questions were raised about their plans stating that "We do not sell
passenger names or other private information to third parties without the
consent of the passenger, and have no intention of doing so in the future."
*********
Yesterday's summary of the WPost story "Puerto Rico Paralyzed by
Strike" should have been labeled solely under the issue "telephony," not
"international/telephony" as Puerto Rico is a territory of the U.S. and
decidedly not "international." Please accept our apologies for this error.

Communications-related Headlines for 7/8/98

International
Puerto Rico Paralyzed by Strike (WP)

Ownership
Hicks Muse Agrees to Sell LIN Television To Chancellor in $900
Million Deal (WSJ)
Chancellor Makes a Foray Into TV With Lin (NYT)

Education
Helping Girls With Computer Education (CyberTimes)
Needed: Techies Who Know Shakespeare (NYT)

TV/Media/Journalism
Cable Ratings Top Networks
No More Media Elite (WP)
Extra! Extra! Newsies Nix Facts for Glitz (WSJ)

Antitrust
Microsoft's Cable Efforts Under Scrutiny (CyberTimes)

Encryption
White House Yields a Bit On Encryption (NYT)

** International **

Title: Puerto Rico Paralyzed by Strike
Source: Washington Post
http://www.washingtonpost.com/wp-sr/digest/nat1.htm
Author: Guy Gugliotta
Issue: International/Telephony
Description: Puerto Rican Governor, Pedro J. Rossello's decision to sell the
Puerto Rico Telephone Company to GTE Corp for $1.75 billion has resulted
in a general strike that has almost closed down the entire island. More
than 50 public sector unions have joined in a 48-hour general strike in
support of the telephone workers opposition to privatization. Many
Puerto Ricans view the sale of the publicly owned telephone company as an
effort to move Puerto Rico toward statehood. "It is part of the national
patrimony...Today the phone company, tomorrow the water, then the
electricity. Pretty soon there's nothing," said San Juan storekeeper Primo
Kjrpalani.

** Ownership **

Title: Hicks Muse Agrees to Sell LIN Television To Chancellor in $900
Million Deal
Source: Wall Street Journal
http://wsj.com/ (B9)
Author: Alejandro Bodipo-Memba
Issue: Ownership
Title: Chancellor Makes a Foray Into TV With Lin
Source: New York Times (D2)
http://www.nytimes.com/yr/mo/day/news/financial/chancellor-lin.html
Author: Carol Marie Cropper
Description: Dallas investment firm Hicks, Muse, Tate & Furst will sell LIN
Television Corp to its radio affiliate, Chancellor Media Corp, the
second-largest radio company in the nation. The stock transaction deal is
valued at "approximately" $902.7 million in stock. Hicks purchased LIN in
March for $1.9 billion. The deal will boost Hicks' control of Chancellor
from 9 to 18 percent. Chancellor hopes that the combination of television,
radio and billboard holdings will give it a unique offering to advertisers.

** Education **

Title: Helping Girls With Computer Education
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/education/08education.html
Author: Pamela Mendels
Issue: Education
Description: Last week the American Association of University Women (AAUW),
based in Washington D.C., announced the creation of a commission of
educators, researchers and software developers to examine gender, technology
and teacher education. The association, which has taken a lead in examining
problems relating to the education of girls, plans to release a report with
policy recommendations within 18 months. "Girls have made a lot of progress
with respect to mathematics and science," said Janice H. Weinman, executive
director of the AAUW. "But the area in which there appears to be a new boys
club, so to speak, is technology."

Title: Needed: Techies Who Know Shakespeare
Source: New York Times (OpEd, A27)
http://www.nytimes.com/yr/mo/day/oped/08ullm.html
Author: Ellen Ullman
Issue: Education
Description: High-tech companies are luring students out of school with
high-paying jobs. They say its the schools fault for not teaching students
the skills they need in the real world and thus students don't see the point
of getting a degree. But what these critics are forgetting is that
historically, most programmers had plenty of education with just a little
coming from the computer science departments. After WWII, physicists and
mathematicians created the industry. Then is the late 60's and 70's, as the
need for programmers grew, government and businesses began to look beyond
those with doctoral degrees. Fortunately, this new demand coincided with all
types of overeducated people from the 60's looking for a way to earn a
living. Each member of this group largely taught themselves computing --
they all knew how to learn and weren't intimidated by having to pick up
another computer language. The next generation of programmers to come along
had computer science and engineering degrees. They too weren't intimidated
but did not seem to read anything but technical books. "They stood mute
among us when we said the occasional phrase in French. They looked confused
when we alluded to Shakespeare or Proust," says Ullman. Many of this group
obtained their degrees without having to study much of what some still call
Western civilization. In hopes of fostering a flexible and open mind, maybe
it is now time for "students and professors to realize that programming
instruction can take place in a few classes, and students can spend the rest
of their time studying foreign languages, literature, linguistics,
philosophy and history of science. Programmers seem to be changing the
world. It would be a relief, for them and for all of us, if they knew
something about it."

** TV/Media/Journalism **

Title: Cable Ratings Top Networks
Source: Washington Post (D7)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/08/020l-070898-idx.html
Author: David Bauder (Associated Press)
Issue: Cable/Television
Description: For the first time ever, cable networks toped broadcasters in
total viewers, ratings and audience share. The Nielsen Media Research
service reported that for the week ending July 5th, the 42 basic cable
networks had an average audience of 21.6 million, while the top four
broadcast networks drew an average of 21.3 million viewers.

Title: No More Media Elite
Source: Washington Post (Op-Ed, A17)
http://www.washingtonpost.com/wp-sr/WPlate/1998-07/08/0201-070898- idx.html
Author: Robert J. Samuelson
Issue: Trends
Description: "Even as we're courted and castigated for our alleged power,
new communications and computer technologies threaten our incomes, social
importance and political influence," worries Samuelson as he contemplates
technologies' effect on changing media habits. More and more people get
their news from computers, while network news and newspaper audiences
continue to shirk. The trend is toward smaller and more specialized
distribution of information. "The notion of a media elite, if ever valid,
requires that people get news and entertainment from a few sources dominated
by a handful of executives editors, anchors, reporters and columnists. As
media multiply, the elite becomes less exclusive."

Title: Extra! Extra! Newsies Nix Facts for Glitz
Source: Wall Street Journal
http://wsj.com/ (A14)
Author: Eugene Patterson, former editor St Petersburg Times & WashPost
Issue: Journalism
Description: A look at changes in and pressures on journalists and
newspapers. Patterson looks at it all -- increasing stories about
celebrities and the move of journalists to television star, cutting corners
and story fabrication, media concentration, alternative advertising
options...He concludes: "Given the glaring faults of contemporary
journalism, I remain confident that the news media will learn the lessons of
the recent embarrassments and succeed in pulling up their socks before the
public loses faith in them. The written word is going to prevail as the
reliable record of a free and reflective society, no matter what technology
delivers it to the reader, and the tough idealists who take up this line of
work will be committed in the main merely to telling the truth."

** Antitrust **

Title: Microsoft's Cable Efforts Under Scrutiny
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/08convergence.html
Author: Jeri Clausing
Issue: Antitrust
Description: Senate Judiciary Committee Chairman Orrin Hatch said yesterday
that he was concerned that Microsoft's "spending binge" into cable
television interests appeared to be an attempt to gain control of the
gateway to the Internet. Senator Hatch said that he was worried that
Microsoft might become a dominant provider of software for set-top boxes
that give TV sets access to the global network. "I don't want to seem like
I'm just on Microsoft's back all the time, but I am concerned about them
buying into all of these cable systems," said Hatch. "This is a matter of
great concern, much more than the browser ever was."

** Encryption **

Title: White House Yields a Bit On Encryption
Source: New York Times (D1,D5)
http://www.nytimes.com/library/tech/98/07/biztech/articles/08encrypt.html
Author: Jeri Clausing
Issue: Encryption
Description: The Clinton Administration announced today that for the first
time it would allow the export of strong data-scrambling software without
any promises of "back-door access" for law enforcement. However, it only
plans to allow this for banks and financial institutions in 45 nations that
have acceptable money-laundering laws.
*********

Communications-related Headlines for 7/7/98

Universal Service
California Cuts Surcharge for State E-Rate Program
(TelecomAM)
California PUC Orders $305 Million Pacific Bell Rate Cut
(Telecom AM)

Bandwidth/Infrastructure
Telecom Industry Overlooking Major Policy Change, Analyst Says
(Telecom AM)

Encryption
U.S. Rules Boost Europe's Encryption (WSJ)
Court Upholds Export Rules On Encryption (WSJ)

Online Services
PSINet to Shift Some Internet Operations Out of
Germany in Wake of Smut Ruling (WSJ)

Computer Technology
Character-Recognition System Targets Chinese Market (CyberTimes)

Magazines
Another New Business Technology Magazine (CyberTimes)

** Universal Service **

Title: California Cuts Surcharge for State E-Rate Program
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The California Public Utilities Commission has reduced the
end-user surcharge that supports the California Teleconnect Fund (CTF),
TelecomAM reports. The CTF supplements federal discounts provided to
schools, libraries and health centers and provides discounts to
community-based organizations not covered by the federal program. Total
demand for CTF discounts was just $13 million in 1997, producing a $33.4
million surplus. Demand was
projected at $16.2 million for 1998 and $20.4 million in 1999. This picture
could change depending on the future of the federal e-rate program. The
surcharge was reduced from 0.41% to
0.05% effective Aug. 1.

Title: California PUC Orders $305 Million Pacific Bell Rate Cut
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The California Public Utilities Commission ordered Pacific Bell
to cut telephone rates by $305.2 million as a permanent offset for the
universal service subsidies the company is receiving from the California
High Cost Fund. Pacific Bell must cut basic non-discounted residential
intraLATA toll rates by $118.9 million, business toll by $35.1 million,
local extended usage rates by $80.5 million, intrastate access charges by
$63.6 million and custom calling service rates by $7.1 million. The PUC said
it split the revenue reduction among
the services with the highest margin of contribution to basic exchange service,
consistent with ensuring sustainable prices and benefits to the broadest
base of
customers.

** Bandwidth/Infrastructure **

Title: Telecom Industry Overlooking Major Policy Change, Analyst Says
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Bandwidth/Infrastructure
Description: Legg Mason analyst Scott Cleland said in a July 1 report to
investors said that
"lost in the hoopla over the AT&T-TCI announcement" on the same day was FCC
Chairman Bill Kennard's offer to reduce the regulation of advanced networks
if Bell companies gave their competitors more access to them. "A major
deregulatory shift stimulating major bandwidth investment by the companies
with most of the sector's capital expenditures -- the local telcos -- could
be a significant boost to overall growth in the communications and
technology sectors." The big winners would be DSL and fiber equipment
suppliers, Bell companies and GTE, Internet computer and software industries
and online providers, Mr. Cleland said. The policy shift could be a negative
for "those benefiting from the low-bandwidth status quo" -- long distance
providers, some competitive LECs and telecom resellers.

** Encryption **

Title: U.S. Rules Boost Europe's Encryption
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Kimberley Strassel
Issue: Encryption
Description: Europe's encryption industry has one word for the US
government: Thanks! US law limits the export of encryption software forcing
buyers to seek better versions of data protection software from European
companies. The fear is that international criminals will send coded messages
that even the CIA and FBI can't break.

Title: Court Upholds Export Rules On Encryption
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Nick Wingfield
Issue: Encryption
Description: Judge James Gwin of the U.S. District Court for the Northern
District of Ohio has ruled that Professor Peter Junger of Case Western
Reserve cannot publish the code for encryption software on his website.
Professor Junger argued that he has a First Amendment right to do so. Judge
Gwin ruled that the First Amendment does not apply to software code which
typically appears as strings of text that most people do not understand. In
part the decision read: "Source code is 'purely functional'....Unlike
instructions, a manual, a recipe, source code actually performs the
functions it describes. While a recipe provides instructions to a cook,
source code is a device, like the embedded circuitry in a telephone, that
actually does the function of encryption."

** Privacy **

Title: A Cautionary Message on Voice Mail
Source: Washington Post, E1
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/07/061l-070798-idx.html
Author: Devon Spurgeon
Description: The recent scandal involving a Cincinnati Enquirer expose of
the Chiquita corporation has raised questions about the security of a
popular voice-mail system. In early May, the Enquirer printed a story
suggesting that Chiquita has engaged in illegal activities ranging from
anti-competitive practices to drug smuggling. Many of these allegations
were supported by internal voice-mail messages, which Chiquita claims were
illegally obtained by reporter Michael Gallagher. The ability to penetrate
private voice-mail systems has raised security concerns for many businesses.
"Voice Mail can be a chink in any corporation's security armor". But it
should not be forgotten that corporate secrets were stolen long before the
development of telecommunication technologies, "There is no system in the
world that is foolproof...If there is a record of a communication it can be
obtained by others by surreptitious means".

** Online Services **

Title: PSINet to Shift Some Internet Operations Out of
Germany in Wake of Smut Ruling
Source: Wall Street Journal
http://wsj.com/ (B10)
Author: Kimberley Strassel
Issue: Online Services
Description: U.S. Internet service provider PSINet will move its web hosting
services out of Germany to other business centers in Europe. The move is in
the wake of a May ruling in Bavaria that held the former head of CompuServe
responsible for the spread of pornography via the online service. "For our
customers and our managing directors...we needed to move some services to
places where the laws are international, and not Bavarian-like," said the
managing director of PSINet in Germany. The German government reacted to the
Bavarian case by passing multimedia law aimed at clarifying Internet issues
and protecting service providers. Conservative regional courts have not
interpreted the law in the spirit it was passed however.

** Computer Technology **

Title: Character-Recognition System Targets Chinese Market
Source: New York Times (CyberTimes)
http://www.nytimes.com/
Author: Bob Tedeschi
Issue: Computer Technology
Description: It sounds like a bad dream: you set up your first computer,
plug it in and sit down to type -- but wait -- all of the keys on the
keyboard are in another language! That scenario is what many Asians are now
facing when they get ready to use their first computer. With around 13,000
characters and no alphabet in their native languages, Chinese, Korean and
Japanese users are having to make do with the Western computer keyboard.
Voice and handwriting-recognition programs do provide alternatives, but they
have proven too slow to provide much of a dent in the mass market. However,
a company called Synaptics, based in Silicon Valley, has developed a Chinese
handwriting-recognition system that reduced input time by 70 percent,
putting it in range with traditional keystroke translation. The company
hopes that this $70 system will give Chinese-speaking computer users one
more reason to get wired.

** Magazines **

Title: Another New Business Technology Magazine
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/07magazine.html
Author: Lisa Napoli
Issue: Magazines
Description: Business 2.0, the latest entry in the realm of high-tech
business publications, is scheduled to hit newsstands today. Jim Daly,
Business 2.0's editor-in-chief, acknowledges that the slick monthly,
published by Imagine Media, is similar to other business technology
magazines, but with essential differences. "We're not a newsmagazine, not a
newspaper -- that's a fairly crowded space," said Daly, a former editor at
Wired Magazine. "This is a new category of magazine.
We're trying to bring it up to 10,000 feet and get a look at the whole
process." In the first issue, the perspective that Daly talks about is seen
in features like a pull-out section on the "Ten Driving Principles of the
New Economy," and an "autopsy" on a failed company. The latter is based "on
the premise that the deconstruction of a defunct technology company can
teach as much as the glorification of success." The magazine also "gives a
nod to success," with profiles of "The 25 Most Intriguing Minds of the New
Economy." Daly calls his target audience "Visioneers." "You can't really
categorize these people by job title, someone could be a CEO, someone could
be a kitchen table entrepreneur. A 'visioneer' has an enormous insight, the
wherewithal and the support to actually change the company." (Visioneer?
Media message? Is that an ego stroke or just a marketing ploy?)
*********
Headlines welcomes Rachel Tamara Anderson who joins us from "the best
telecom policy program in the nation"(1) -- Northwestern University. After
Headlines today Rachel and I will be recounting the glory days of Wildcat
football. Larry Irving will join via conference call...

Communications-related Headlines for 7/6/98

Universal Service
Universal Service Administrator Proposes Consolidation (Telecom AM)
Gingrich Endorses Using Phone Tax to Pay for E-Rate (Telecom AM)
MCI Reduces Line-Item Fees to Reflect E-Rate Cut (Telecom AM)
Field Hearing on Universal Service (FCC)

First Amendment
A Reform That Endangers Free Speech (WP)

Disablities
Manufacturers Seeking 'Realistic' Rules on Serving Disabled (Telecom AM)
Access to Telecommunications Services and Equipment
to Americans with Disabilities (FCC)

Television
Preparing for battle (B&C)
FCC's cable rules up for review (B&C

Privacy
Privacy in the Digital Age (NYT)

Journalism
CNN takes a fall (B&C)

Technology
DVD Leads Race for TV Disks, But It Is Looking Over Its Shoulder (NYT)
We Got Your Email, Just Don't Expect a Reply (NYT)

Jobs
Labor Data Show Economy is Cooling (WSJ)

Education
Technology Finance Plan is Scuttled By University (NYT)

Lifestyles
We Can't Save Everything (NYT)
For the Officeless, A Place to Call Home (NYT)
Score One for Delaware (WP)

** Universal Service **

Title: Universal Service Administrator Proposes Consolidation
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Title: Universal Service Administrative Company Report and Plan of
Reorganization
Source: FCC
http://www.fcc.gov/ccb/universal_service/usacjuly.pdf
http://www.fcc.gov/Speeches/Kennard/Statements/stwek852.html
Author: Universal Service Administrative Company
Description: The Universal Service Administrative Company (USAC) submitted
"plan of reorganization" on July 2 to the FCC. The plan would consolidate
all universal service programs -- the high-cost support, the schools &
libraries program and the rural health care
program -- with USAC chief Cheryl Parrino in charge. FCC Chairman William
Kennard said the
Commission will seek comment on the plan and act quickly. "Further debates over
universal service should be about policy choices, not administrative structure."

Title: Gingrich Endorses Using Phone Tax to Pay for E-Rate
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service/Legislation
Description: House Speaker Newt Gingrich (R-GA) endorsed a plan to use funds
from the
three-percent telephone excise tax to pay for e-rate Internet subsidies. The
plan has been backed by Senate Communications Subcommittee Chairman Conrad
Burns (R-MT) and House Telecom
Subcommittee Chairman Billy Tauzin (R-LA). Rep Tauzin is expected to
introduce a bill
to use half of the tax for the e-rate and repeal the other half this
congressional session.

Title: MCI Reduces Line-Item Fees to Reflect E-Rate Cut
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: Reflecting the $1 billion cut in the e-rate program, MCI will
reduce new fees it was to start charging residential customers in July. MCI
said it will reduce its surcharge on
interstate and international calls to 5 percent from 5.9 percent for
residential
customers -- and will continue to exempt intrastate calls from new universal
service fees.

Title: Field Hearing on Universal Service
Source: FCC
http://www.fcc.gov/Speeches/Kennard/spwek820.html
Author: Chairman Kennard
Issue: Universal Service
Description: Chairman Kennard's 7/1/98 Statement before the US Senate
Committee on Commerce, Science, and Transportation at the Field Hearing on
Universal Service in Anchorage, Alaska.

** First Amendment **

Title: A Reform That Endangers Free Speech
Source: Washington Post (A19)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/06/011l-070698-idx.html
Author: Nadine Strossen, Ira Glasser and Laura W. Murphy
Issue: First Amendment
Description: "Nine former leaders of the American Civil Liberties Union have
released a statement saying that they have changed their positions on
campaign finance and now disagree with legal scholars, Supreme Court
justices and the ACLU's long-standing policy to seek the highest
constitutional protection for political speech [E.J. Dionne Jr., "Politics
as Public Auction," op-ed June 19]. Our former ACLU colleagues say that our
opposition to current legislation allows members of Congress to hide behind
an unjustified constitutional smoke screen. We are untroubled by the
questions they raise and believe that it is they who allow members of
Congress and the president to hide behind so-called reforms that are
unconstitutional and ineffective. As long as measures such as
McCain-Feingold or Shays-Meehan are allowed to masquerade as reform, neither
Congress nor President Clinton will get serious about true reform, which we
believe lies in the direction of fair and adequate public financing...Yet
our former ACLU colleagues offer sweeping proposals that would constitute a
wholesale breach of First Amendment rights and that ignore the real-world
impact of limits on speech. They speak approvingly of efforts to impose
'reasonable limits on campaign spending' without saying specifically what
such regulations would do. But when we look at those consequences it is
clear that current campaign-finance measures would do immeasurable damage to
political speech."

** Disabilities **

Title: Manufacturers Seeking 'Realistic' Rules on Serving Disabled
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Disabilities
Description: In comments filed at the FCC June 30, the Information
Technology Industry Council (ITIC) said the Commission should: 1) Encourage
the use of specially designed equipment; 2) Establish a "bright line test"
for identifying which telecom functions should be accessible; and 3) Use
"practical economic considerations" to determine whether accessibility is
"readily achievable." The Consumer Electronics Manufacturers Association
(CEMA) cautioned against "unnecessary mandates that would discourage product
availability and raise prices for all consumers."

Title: Access to Telecommunications Services and Equipment
to Americans with Disabilities
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Comments/fcc98055/9855com.html
Issue: Disabilities
Description: Comments on FCC's Proposed Rules to Promote Access to
Telecommunications Services and Equipment to Americans with Disabilities (WT
Docket No. 96-198, FCC 98 -55).

** Television **

Title: Preparing for battle
Source: Broadcasting&Cable (p.22)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Digital Television
Description: At a meeting last week, the National Association of
Broadcasters board expressed "serious concern" rather than vigorous
opposition to a possible recommendation from the Gore commission to adopt a
voluntary code of conduct. Led by CBS Senior Vice President Marty Franks and
A.H. Belo's Mike McCarthy, the board decided not to oppose a code before it
is even recommended. Mr. Franks' boss is CBS President Les Moonves, co-chair
of the Gore commission, and Mr. McCarthy's boss is Belo President Robert
Decherd, a member of the commission. Andrew Schwartzman, president of the
Media Access Project, said, "Perhaps I'm grasping at straws, but I hope that
in expressing a 'serious concern' rather than outright opposition, the NAB
is leaving the door open."

Title: FCC's cable rules up for review
Source: Broadcasting&Cable (p.38)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Cable
Description: In late June the Federal Communications Commission proposed
"tinkering with the limits on the number of cable systems that a company can
own." Currently, the limit is 30% of homes passed nationwide. TCI is
expected to exceed that limit soon. The FCC has never enforced the rule
because of a pending court case. Any new rules could have a major effect on
the cable industry and the proposed AT&T-TCI merger.

** Privacy **

Title: Privacy in the Digital Age
Source: New York Times (A14)
http://www.nytimes.com/yr/mo/day/editorial/index.map?116,105
Author: NYT Editorial Staff
Issue: Privacy
Description: Encryption technology, the encoding of digital information to
secure its privacy, is being used to protect transmitted information from
hackers or criminals. The F.B.I. and the Justice Dept. have largely dictated
the Clinton Administration's current policies toward encryption. These two
agencies block encryption makers from exporting their advanced technology
unless they agree to develop a method for lawmakers to gain access to it.
But now, according to industry officials, the U.S. controls on exports are
starting to backfire. More and more foreign companies are starting to supply
encryption technologies but are not including the method for law enforcement
agencies to gain access. "The F.B.I. should give up its losing fight against
encryption and work with industry to develop new means to catch criminals
who use it...Law enforcement agencies have to find a legal and ethical way
to stay ahead of technology, rather than stand in the way of it. Trying to
block advances in the digital age is futile."

** Journalism **

Title: CNN takes a fall
Source: Broadcasting&Cable (p.10)
http://www.broadcastingcable.com/
Author: Steve McClellan
Issue: Journalism
Description: A story reported by CNN and Time that the US government used
nerve gas on defectors during the Vietnam war has been retracted. The case
is a big blow to CNN and its new high-profile NewsStand series of TV news
magazines which were to exploit synergy between CNN and other Time Warner
holdings such as Time, People, Fortune, Entertainment Weekly, and Sports
Illustrated. CNN is reviewing its editorial standards and practices.

** Jobs **

Title: Labor Data Show Economy is Cooling
Source: Wall Street Journal
http://wsj.com/
Author: Jacob M. Schesinger
Issue: Jobs/Economy
Description: The government's most recent labor-market report suggests an
economic cooling as job growth slows. While Gross Domestic Product growth
fell to just 1 percent to 2 percent in June and unemployment jumped .2
percent, Labor Secretary Alexis Herman claims that, "The economy continues
to preform at a very stable pace." The most affected sector is
manufacturing, which has experienced almost 30,000 lost jobs as a result of
the General Motors strike and the Asian economic crisis. On the other hand,
the service sector has seen
large gains with the addition of 215,000 new jobs in the last month.
Finance, insurance, and real estate are the largest growth areas which
continue to grow "at a pace about 50 percent faster than the rest of the
economy."

** Education **

Title: Technology Finance Plan is Scuttled By University
Source: New York Times (D1,D7)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/06univ.html
Author: Laurie Flynn
Issue: Education Technology
Description: Last fall, university officials from California State, the
U.S.'s largest college system, announced a proposal called CETI, California
Educational Technology Initiative. The plan was that a group of
high-technology companies, Microsoft Corp., Hughes Electronics, GTE and
Fujitsu America, would invest $300 million into the university's networks
and other technology infrastructure. In exchange for their investment, the
companies were promised revenue opportunities from services and products
like pager accounts and software sold to faculty and students. Last week,
the intensely debated plan was officially cancelled. GTE, the lead company
in the proposed partnership, announced that it would no longer participate
because it was unable to reach an agreement with the university on the
financial side of the deal. In May, both Microsoft and Hughes pulled out for
similar reasons. GTE's cancellation has also ended the participation of
Fujitsu. The university, which serves nearly 330,000 students, is now facing
a $70 million to $100 million deficit in its technology program. Chancellor
Charles Reed said that the university system would continue to try to
develop partnerships with private companies. At the same time considering a
bond issue or possible raising student fees in direct exchange for the much
needed technology upgrade.

** Technology **

Title: DVD Leads Race for TV Disks, But It Is Looking Over Its Shoulder
Source: New York Times (D1,D4)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/06disk.html
Author: Joel Brinkley
Issue: DVD
Description: The latest recorded video technology to hit the market, DVD,
is boasting the sale of almost 600,000 players in the 15 months since it's
introduction. DVD, a CD-sized digital video disc that can also be used for
computer files and audio recordings, has seven times the storage capacity of
Cd-ROMs and CDs. While penetration is greater than that of either
compact-disc players or VCRs at the same age, the companies backing DVD are
ready for a battle. Not only are they concerned about competition from the
soon to be introduced spinoff technology called Divx, they also worry about
the threat posed by digital cable television's ability to offer pay-per-view
movies on demand. DVD backers give themselves about three years to be in 10
million homes before the availably of movies on demand "short-circuits the
sale of movies on discs."

Title: We Got Your Email, Just Don't Expect a Reply
Source: New York Times (D3)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/06mail.html
Author: Pamela LiCalzi O'Connell
Issue: Email
Description: According to limited market research and anecdotal evidence,
unless a company is Web-based to start with, it is unlikely to have the
tools and policies to handle the inflow of messages from its Web site. "When
companies go on the Web they tend to immediately get overwhelmed by
messages," said Donna Hoffman, an associate professor at the Owen Graduate
School of Management at Vanderbilt Univ. "But some still don't see handling
this email as one of the most important customer service jobs. They haven't
created the proper policies or allocated the funds." Forrester Research
recently completed a report based on interviews with 37 companies that were
selected as particularity intent on customer email, averaging 500 in-coming
emails a day. It found that even among those highlighted companies, dealing
with the "deluge" and figuring out how to split the responsibility among
departments could be confusing.

** Lifestyles **

Title: We Can't Save Everything
Source: New York Times (A15)
http://www.nytimes.com/yr/mo/day/oped/index.map?47,144
Author: Deanna B. Marcum
Issue: Lifestyles
Description: With the ability to save practically everything -- from reports
to email -- on a computer hard drive or disk these days, you would think our
lives would become easier to manage. Unfortunately, that is not the case.
The amount of data we create on computers is growing exponentially, leaving
us with a quantity of information that humans have never had to deal with
before. One would think that electronic storage would save time and space.
"But the preservation of data over decades and centuries demands not only a
huge financial investment in computer hardware and software, but also the
institutional commitment to maintaining those systems." While experts are
searching for the best solution to this growing problem, one thing is
clearly NOT the solution and that is to save every piece of data generated.
Maybe its time to work on our critical judgement as to select items that
would be of the most value. "In our age, when too much information can numb
the mind and paralyze the will, knowledge may develop a new sort of
elusiveness."

Title: For the Officeless, A Place to Call Home
Source: New York Times (D1,D4)
http://www.nytimes.com/library/tech/98/07/biztech/articles/06kink.html
Author: Laurie J. Flynn
Issue: Access
Description: Kinko's, once known as the 24 hour printing and copy shop, is
now doing what many envisioned cybercafes would do -- "offer an escape from
the isolation that this abundance of modern technology seems to have
created." Kinko's has met the digital age by also offering fax machines,
super-fast color printers and networks of computers equipped with a variety
of software programs and Internet connections. These additions to the
Kinko's repertoire have made it a blessing for people needing to make use of
a computer while traveling or the home-office worker that needs a little
extra help. Paul Orfalea, who founded the company in 1970, is hoping to get
people to spend more time, and thus, more money, at its stores. Besides
adding new equipment, the company is talking to Starbucks about opening
coffee shops next to some Kinko's stores. It is also considering opening up
"mini-Kinko's" in hotel lobbies and airports.

Title: Score One for Delaware
Source: Washington Post (F5)
http://www.washingtonpost.com/
Author: WashPost Staff Writer
Issue: Internet/Lifestyles
Description: In a recent survey of the Internet, MCI Communications Corp.
found that the most Internet-savvy people in the country live in ...
Delaware. On an average, people in that state scored an average 94 on a test
they took on an MCI World Wide Web site www.nettest.mci.com. The average
score is 82. District residents came in at 86, while those in Maryland
scored 85 and in Virginia the average was 80. The state at the bottom of the
list was Missouri, coming in at 65. In addition to states as a whole, the
survey found that despite the belief the Internet is more of a male kind of
place, women did slightly better than men -- 82 versus 80. (Now we finally
know the answer to why old Georgie boy REALLY crossed the Delaware.)
*********