REGULATION/FCC
Bell Atlantic Deal Could Open Local Markets (ChiTrib)
U.S. FCC to Finish Review of Big Mergers by Mid-Year (WP)
Chairman Kennard's Agenda for the FCC for 1999 (FCC)
FCC Delay Sought On Consortium's Undersea Cable (WSJ)
Offices of Chairman and Commissioners Relocate to Portals (FCC)
MEDIA&POLITICS
Network Opposes a Provision to Hold Private Deliberations (NYT)
Anti-Impeachment Web Site Tallies Millions in Pledges (CyberTimes)
TIIAP
Commerce Announces $17 Million in Grants to be Awarded in 1999 (NTIA)
INTERNET
Unhappy Customers Find a Complaint Site Pays Off (CyberTimes)
TELEPHONY
A Widening World for Wireless (WP)
AT&T Plans to Buy Remaining Interest In Canada Affiliate for
$529.4 Million (WSJ)
ANTITRUST
The Prosecution Almost Rests (NYT)
==============
REGULATION/FCC
==============
BELL ATLANTIC DEAL COULD OPEN LOCAL MARKETS
Issue: Competition
On Thursday Bell Atlantic and tiny competitor Allegiance Telecom announced a
deal that will make it easier for customers to change phone companies
without having to change their phone numbers. The deal could make the
beginning of the end of the logjam preventing competition in the local phone
market. "My prediction is that Bell Atlantic will be in long distance by
summer," said Royce Holland, chief executive of Allegiance and a veteran
battler of Bell companies. "If Bell Atlantic follows through with its
commitments, I have promised to support their case with the Federal
Communications Commission." FCC Chairman Bill Kennard has suggested that
1999 could be the breakthrough year for a local incumbent getting into long
distance. If the Bells convince regulators they are opening their markets
sufficiently, opposition to proposed mergers -- like the one between SBC and
Ameritech -- could evaporate.
[SOURCE: Chicago Tribune (Sec3, p.3), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9901080304,00.html
U.S. FCC TO FINISH REVIEW OF BIG MERGERS BY MID-YEAR
Issue: Telephone
The Federal Communications Commission plans to complete its review of three
huge telecommunications mergers by the middle of 1999 amid a busy agenda
that includes speeding up the Internet and reforming phone subsidies, FCC
Chairman William Kennard said Thursday. Kennard did not indicate which way
the commission was leaning on the mergers of AT&T Corp. with
Tele-Communications Inc., Bell Atlantic Corp. with GTE Corp., and SBC
Communications Inc. with Ameritech Corp. He said the agency has a "fairly
extensive record," but added that "our review is not complete." He called
the AT&T acquisition of TCI as "a very exciting transaction" because it
could create significant competition in the local telephone market, but he
said the deal does pose "some significant questions." On other matters,
Kennard said later in January the FCC would issue rules to create more
incentives for companies to offer high-speed Internet access. The FCC will
also seek to ensure that new services are available to all Americans,
including those living in poor and rural areas. The FCC's massive overhaul
of the multi-billion dollar system of subsidies that keep the cost of phone
service affordable in rural and poor areas will be completed by July 1999,
he vowed. Kennard also said the FCC was just a few days away from releasing
a long awaited ruling clarifying that calls computer users make to connect
to the Internet are subject to federal regulation. New rules on ownership of
radio and television stations are still being reworked, however.
[SOURCE: Washington Post (Online), AUTHOR: Aaron Pressman (Reuters)]
http://www.washingtonpost.com/wp-srv/washtech/daily/jan99/fcc010799.htm
See also:
FCC REVIEWING TELECOM MERGERS
[SOURCE: Washington Post (Online), AUTHOR: Jeannine Aversa (Associated Press)]
http://www.washingtonpost.com/wp-srv/WAPO/19990108/V000829-010899-idx.html
CHAIRMAN KENNARD'S AGENDA FOR THE FCC FOR 1999
Issue: FCC
"Looking forward to 1999, the challenge before this Commission is clear: to
promote competition, to foster new technologies, to protect consumers, and
to ensure that all Americans have access to the wonders of the
communications revolution. These goals are the will of the American people
and of Congress, set forth in the Telecommunications Act of 1996. And we at
the FCC will continue to work hard to bring these benefits to every
American." (See the speech and an outline of the agenda at the URL below or
view on C-SPAN at 12:00pm eastern)
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Kennard/Statements/stwek901.html
FCC DELAY SOUGHT ON CONSORTIUM'S UNDERSEA CABLE
Issue: International
Global Crossing Inc. has asked the Federal Communications Commission to
delay consideration of a $3 billion fiber-optic link between Japan and the
U.S. The so-called JUS cable is backed by a consortium of 33 companies,
including AT&T, British Telecom MCI WorldCom and Japan Telecom. The JUS
Cable and a cable laid by Global Crossing are both to begin operations
across the Pacific in early 2000. Global Crossing, a public corporation
operating out of Bermuda, claims the JUS cable inhibits competition and has
asked the FCC to defer action on approving a U.S. landing license for the
JUS cable. Patricia Robertson, a spokeperson for the JUS consortium, said,
"It is our belief that the FCC should not delay approval."
[SOURCE: Wall Street Journal (B5), AUTHOR: Quentin Hardy]
http://www.wsj.com/
OFFICES OF CHAIRMAN AND COMMISSIONERS RELOCATE TO PORTALS
Issue: FCC
Effective Monday, January 11, the Offices of FCC Chairman William Kennard
and Commissioners Susan Ness, Harold Furchtgott-Roth, Michael Powell and
Gloria Tristani will relocate to the Commission's new headquarters
building at The Portals, 445 12th Street, SW, Washington, D.C. 20554. The
Chairman and Commissioners will be located on the eighth floor of the new
building. Their current offices at 1919 M St., NW, will close on Thursday
afternoon, January 7, and remain closed on Friday, January 8, to accommodate
the move. All current telephone and facsimile numbers and e-mail addresses
will remain the same.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Miscellaneous/Public_Notices/1999/pnmc9000.html
==============
MEDIA&POLITICS
==============
NETWORK OPPOSES A PROVISION TO HOLD PRIVATE DELIBERATIONS
Issue: Politics/ Journalism
While the Senate impeachment trial of President William Clinton commenced
yesterday in living rooms across the nation, there is uncertainly as to how
much of the trial will be broadcast to the public. In previous impeachment
trials - including those of federal judges and President Andrew Johnson --
Senators have given final deliberative speeches in private. This time
around, however, there is disagreement over which portions, if any should be
held away from the public's view. The uncertainty over permissible trial
coverage provoked the chief executive of C-Span, Brian Lamb, to write a
letter to Senate Majority Leader Trent Lott (R-Miss) asking for the ability
to televise the entire trial. "Full and direct access of the public to each
Senator's consideration of the evidence would be consistent with the
openness characterizing each step leading up to the trial," wrote Lamb. Some
senators have argued that the deliberations must be keep private to avoid
temptations to play politics.
[SOURCE: New York Times (A14), AUTHOR: David Johnston]
http://www.nytimes.com/library/politics/010899impeach-broadcast.html
ANTI-IMPEACHMENT WEB SITE TALLIES MILLIONS IN PLEDGES
Issue: Internet & Politics
More than $10 million has been pledged through a website www.moveon.org
devoted to defeating politicians who have ignored voters' wishes to censure
President Clinton. "Did you say $10 million?" asked a surprised Michael
Cornfield, a professor at George Washington University's Graduate School of
Political Management. "That's like four orders of magnitude, as in decimal
point, greater than anything I've ever heard of." The key difference, he
said, is that the previous measure pertains to campaign donations actually
collected, not pledged, over the Internet. "But the odd thing, and what is
really interesting to me, is that this is not an interest group," Cornfield
said. "This a bunch of people who have been following a news story and are
outraged by the narrative. They want to change the narrative. We've had
enormous reactions before, to things like Vietnam and Watergate. But this is
new. We've never had anything like this. I've never heard of anybody getting
this kind of money before." Says Jonah Seiger, co-founder of Mindshare
Internet Campaigns, "I find its whole existence very important. This is a
signal of the future of the political process in that someone with access to
technology, a little bit of money and a compelling message can organize a
very effective constituency essentially overnight."
[SOURCE: CyberTimes, AUTHOR: ]
http://www.nytimes.com/library/tech/99/01/cyber/articles/08move.html
=====
TIIAP
=====
COMMERCE ANNOUNCES $17 MILLION IN GRANTS TO BE AWARDED IN 1999
TO HELP EXTEND INFORMATION TECHNOLOGY BENEFITS TO ALL AMERICANS
Issue: TIIAP
From Press Release: Approximately $17 million in grants will be awarded in
1999 by the Commerce Department to state, local, and tribal governments and
non-profit entities as part of the Clinton Administration program to extend
benefits of the Internet and other information technology to all Americans,
especially those in inaccessible, rural and underserved urban communities,
Commerce Secretary William M. Daley announced. "Across America, communities
are recognizing that telecommunications and information technologies are key
to creating economic opportunities. The Commerce Department's
Telecommunications and Information Infrastructure Assistance Program (TIIAP)
http://www.ntia.doc.gov/otiahome/tiiap/ is playing an important role, as
it focuses on underserved communities, especially inner cities and rural
areas," Secretary of Commerce Daley said. "The TIIAP program illustrates how
technology equips American workers and entrepreneurs, students and teachers,
doctors and patients, and parents and children with the skills and tools
they need to meet the challenges of the Information Age. Projects funded
through these grants have helped forge partnerships in local communities
across the country and have ensured that information technologies live up to
their potential and enhance community services, health care delivery, civic
participation and much more."
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/tiiap99pr2.htm
========
INTERNET
========
UNHAPPY CUSTOMERS FIND A COMPLAINT SITE PAYS OFF
Issue: Consumers
Internet complaint sites about Disney and American Online have existed for a
long time, but consumers are seeing that targeted sites can be very
effective for getting relief when wronged by a company. "If you bring a suit
to a cleaner and they do a lousy job, you can seek damages and picket in
front of the store," said a lawyer at Stern, Dubrow & Marcus in Maplewood,
N.J. "Or you can go to a newspaper and publicize your claim. But those
perfectly legitimate tactics have limited impact. Go on the Net, though, and
your speech capability is magnified."
[SOURCE: CyberTimes, AUTHOR: Carl S. Kaplan kaplanc( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/cyberlaw/08law.html
=========
TELEPHONY
=========
A WIDENING WORLD FOR WIRELESS
Issue: Wireless
The battle for ownership of AirTouch Communications Inc. is escalating as
companies consider the possibility of creating a fourth national wireless
network. The first company to make a bid for AirTouch was Bell Atlantic
Corp. with an offer valued at $45 billion. Because of its East Coast
dominance the addition of AirTouch would give it nearly national reach.
Britain's Vodaphone Group PLC likes AirTouch's holdings in Europe and is
offering about $54 billion. Vodaphone would also become a player in the U.S.
market. MCI WorldCom is described as "actively interested" but has no plans
to make an offer in the immediate future. Observers are divided on the
advantage for MCI WorldCom of owning AirTouch. It is the only major U.S.
telecommunications company without a wireless branch. However, such a
purchase would run counter to its expressed plan of serving the high-end
business markets with mostly data services. Other bidders may also emerge,
including British Telecommunications PLC and Germany's Mannesman AG.
Interest in wireless has been spurred by the success of the national
wireless networks in offering customers a monthly flat price for all their
local and long-distance wireless calling.
[SOURCE: Washington Post (F1), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/WPlate/1999-01/08/052l-010899-idx.html
See also:
MCI WORLDCOM MAY JOIN THE BIDDING FOR AIRTOUCH
[SOURCE: New York Times (C2), AUTHOR: SETH SCHIESEL]
http://www.nytimes.com/library/tech/99/01/biztech/articles/08bell.html
AT&T PLANS TO BUY REMAINING INTEREST IN CANADA AFFILIATE FOR $529.4 MILLION
Issue: Telephone
AT&T will invest $529.4 million U.S. dollars to buy out the other owners of
its Canadian long-distance telephone affiliate and to expand the business
into a full-service provider. AT&T Canada is presently owned 33% by AT&T
which is the maximum a non-Canadian company is allowed to own. AT&T plans to
place the other 67% stake into an arms-length trust to be managed by an
outside executive. Analysts believe AT&T is setting itself up to compete
with current industry leader Bell Canada. Observers expect AT&T to expand
service from long distance into local telephone, cable television, and
Internet services.
[SOURCE: Wall Street Journal (B5), AUTHOR: Solange de Santis]
http://www.wsj.com/
=========
ANTITRUST
=========
THE PROSECUTION ALMOST RESTS
Issue: Antitrust
As the Department of Justice wraps up presentation of the Government's
antitrust case against Microsoft, the soft ware giant prepares to refute the
litany of abuses it has been accused of. The government has produced witness
after witness to testify to Microsoft's predatory behavior. Microsoft's
lawyers will argue that government has not proven that the company engaged
in any illegal activity. They will attempt to show that Microsoft's
school-yard bully style is just part of the normal posturing that highly
competitive high-tech companies engage in. Microsoft's lead trial, John L.
Warden lawyer, told the court in his opening statement; "The antitrust laws
are not a code of civility in business."
[SOURCE: New York Times (C1), AUTHOR: Steve Lohr]
http://www.nytimes.com/library/tech/99/01/biztech/articles/08soft.html
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