Communications-related Headlines for 10/29/97

FCC
WSJ: Three Nominees to FCC Are Approved by Senate

Infrastructure
NYT: Washington Hears Testimonials On Program to Connect the Masses

Political Participation
NYT: Who Says You Want a Revolution?
TelecomAM: Nearly 8 out of 10 Web Users Will Vote This Year

Mergers
WSJ: MCI Winner, Be It WorldCom or GTE, May Find It Has
Not Yet Begun to Fight

Competition
TelecomAM: 8th Circuit Decision on Unbundled Network Elements Stifles
Competition, says Comptel
WSJ: Congress May Rescue Satellite Broadcasters From Royalty Boost

Spectrum
TelecomAM: Wireless Auction Participant Files Bankruptcy,
FCC Continues Feud
TelecomAM: Satellite Market Drives Demand For More Capacity

InfoTech
TelecomAM: Bellsouth Adds E-Mail Capability to Digital Phones

Privacy
NYT: Underdeveloped, In 'Gattaca' Plot, a Lesson in Online Identity

** FCC **

Title: Three Nominees to FCC Are Approved by Senate
Source: Wall Street Journal
http://wsj.com/ (B9)
Author: Dow Jones Newswires
Issue: FCC
Description: Last night the Senate approved three of President Clinton's
four nominees to the Federal Communications Commission by voice vote.
Michael Powell (son of retired Gen. Colin Powell), Harold Furchtgott-Roth
(the House Commerce Committee's chief economist), and Gloria Tristani
(commissioner of the New Mexico State Corporation Commission) have all been
approved. The Senate is expected to debate the nomination of Bill Kennard today.

** Infrastructure **

Title: Washington Hears Testimonials On Program to Connect the Masses
Source: New York Times/ CyberTimes
http://www.nytimes.com/library/cyber/week/102997wiring.html
Author: Jeri Clausing
Issue: Infrastructure
Description: "Networks for the People," a conference focusing on bringing
the information superhighway to all of America, was held yesterday in
Washington, DC. The conference was hosted by the Department of Commerce's
National Telecommunications and Information Administration (NTIA). Award
winners showcased and shared experiences about how they have used technology
to improve lives and their communities through projects that had been
financed by the Telecommunications and Information Infrastructure Assistance
Program (TIIAP), which was initiated by the Clinton Administration.
Although there
are several technology grants offered by the federal government, Larry
Irving, assistant Commerce Secretary and the director of NTIA, said that the
TIIAP Program has become the most competitive because it includes a number of
disciplines - education, law enforcement, health and welfare. Irving added,
"It's not about what people in Washington think is important, it's what
communities need."

** Political Participation **

Title: Who Says You Want a Revolution?
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/persuasion/102897persuasion.html
Author: Rebecca Fairley Raney
Issue: Internet Uses
Description: As many of us hope for the rise of a computer-driven democracy
where ideas are king and it is knowledge, information and participation for
all that reign, Bruce Bimber, a political scientist at the University of
California at Santa Barbara, has just released some sobering news. In the
most comprehensive study to date on political behavior on the Internet, he
has found that people are not politically participating on the Internet.
"The respondents to his survey represented not the general population, but
about 12,000 people who are deeply entrenched both in politics and the
Internet." Mr. Bimber also looked to community organizations to see if they
were contacting people through the Internet, and he found that only 1
percent of those who were highly politically involved received online
contact from community groups. Bimber concludes that "So far, the
"cyberocracy" is falling flat." "I think the new democracy is going to look
like the old democracy," he said. "The people who are going to be most
effective using the Net are the people who have been most effective with
television, the same organizations that dominate direct mail."

Title: Nearly 8 out of 10 Web Users Will Vote This Year, says new research
Source: Telecom A.M.---Oct. 29, 1997
http://capitol.cappubs.com/am/
Issue: Media & Politics
Description: The NPD Group, a marketing information firm, conducted a
recent study that revealed that 78% of the U.S. online community will vote
in next week's political elections. NPD said that these findings underscore
the strong political involvement of today's Web users when compared to the
general population. But, there were some key areas of growth and decline
among the online population as well. More women will vote this year than
last year, but 3% fewer male Web users said they will vote. Younger voters
from ages 18-24 will turnout 5% more than last year, while the largest
drop-off in voters appeared among 45-54 year olds, a 6% drop-off.

** Mergers **

Title: MCI Winner, Be It WorldCom or GTE, May Find It Has Not Yet
Begun to Fight
Source: Wall Street Journal
http://wsj.com/ (B8)
Author: Bryan Gruley & Leslie Cauley
Issue: Mergers
Description: WorldCom and GTE executives are trying to convince MCI
shareholders that their respective deals will easily pass regulatory muster.
Regulators in DC and two dozen states must approve any deal and will be
considering what effects it has on competition. Approval could take as long
as year as regulators decide how the deal should benefit local, long
distance, and Internet customers. GTE, with local monopolies in 28 states,
may face tougher regulatory scrutiny.

** Competition **

Title: 8th Circuit Decision on Unbundled Network Elements Stifles
Competition, says Comptel
Source: Telecom A.M.---Oct. 29, 1997
http://capitol.cappubs.com/am/
Issue: Competition
Description: The 8th U.S. Circuit Court of Appeals' decision on unbundled
network elements (UNEs) effectively shuts competitors out of the residential and
small business local markets, according to the Competitive
Telecommunications Assoc (CompTel). The decision gave the incumbent local
exchange carriers the OK to split network elements that normally work
together, thus forcing the competitors to rebundle the elements before
providing local services. CompTel's General Counsel, Ginny Morrelli, said
the group may ask the FCC to find a way around the problems caused by this
decision because "time is of the essence here." The problem lies in the high
costs local entrants will have to pay for disconnecting the UNEs as well
reconnecting them.

Title: Congress May Rescue Satellite Broadcasters From Royalty Boost
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Dow Jones Newswires
Issue: Satellite
Description: Members of Congress are already making noise about changing the
newly-set royalty fees charged to DBS operators. Copyright officials have
increased the fees from $0.06-$0.17 per subscriber to $0.27. The move could
hamper the ability for DBS to compete with cable television.

** Spectrum **

Title: Wireless Auction Participant Files Bankruptcy, FCC Continues Feud
Source: Telecom A.M.---Oct. 29, 1997
http://capitol.cappubs.com/am/
Issue: Spectrum
Description: Dallas-based General Wireless, which bid $1.1 billion in
May's gov't. auction, filed for bankruptcy to protect itself from creditors.
Outgoing FCC Chairman Reed Hundt blamed the Commission, saying that the
filing was "not surprising given the failure of the commission to adopt a
workable solution for the larger C-block licensees. Now the bankruptcy court
must slowly sift through the barrage of clever legal arguments made by the
debtor's lawyers designed to keep these licenses on ice." FCC Commissioner
Susan Ness disagreed. "It is not the role of the commission to bail
out...those who overbid or who are over-leveraged. The marketplace, not the
FCC, should determine winners and losers. That's what a market-driven
auction is all about." The licenses offered at these auctions would allow
wireless companies to offer personal communication services. The FCC's
airwave auctions, which started in '94, have raised more than $20 billion
for the U.S. Treasury.

Title: Satellite Market Drives Demand For More Capacity
Source: Telecom A.M.---Oct. 29, 1997
http://capitol.cappubs.com/am/
Issue: Satellites
Description: A global explosion of telecommunications services has created
an unprecedented demand for satellite capacity. Today, satellites are used
for a myriad of services, but in the next few years will be joined by a mass
of interactive services, including high-speed Internet links. One solution
for the demand is to build more powerful satellites. Satellite TV is
creating much of the demand for larger satellites from companies like the
L.A.-based Hughes Space & Communications, whose orders value close to $4.3
billion. Digital technology might seem to be the solution to the increasing
demand for more capacity, even though broadcasting trends suggest otherwise.
Satellites will also be used more for interactive and online services. Jack
Juraco, a satellite product line manager at HSC, said, "The biggest
challenge is trying to squeeze more satellite capacity in the same volume or
form. These things have got to fit into a launcher vehicle, and launcher
capacity doesn't develop as fast."

** InfoTech **

Title: Bellsouth Adds E-Mail Capability to Digital Phones
Source: Telecom A.M.---Oct. 29, 1997
http://capitol.cappubs.com/am/
Issue: Information Technology
Description: BellSouth Mobility DCS is making responding to e-mail from
digital phones possible for customers in North Carolina, South Carolina, and
Tennessee. All that is needed is an e-mail address similar to a DCS phone
number. Customers can receive an e-mail of up to 160 characters and send
messages to DCS subscribers from e-mail software that supports 'Net
communication.

** Privacy **

Title: Underdeveloped, In 'Gattaca' Plot, a Lesson in Online Identity
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/under/102997under-wayner.html
Author: Peter Wayner
Issue: Privacy
Description: As we move towards a more computer oriented society the ability
to identify ourselves is becoming increasingly difficult. Biometrics is one
option that is just beginning to reach the marketplace "as companies create
fingerprint readers, retina scanners and other devices for machine
recognition." Peter Wayner thinks that anyone who places faith in these
devices or is interested in the realm of online commerce should make a point
to see the movie "Gattaca." While it is typical Hollywood in many
ways, "it's far more instructive about how the financial system and online
commerce are heading for a disaster because the Net is rapidly trying to
incorporate techniques for paying bills that revolve around our identity."
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