Communications-related Headlines for 6/20/97

A Seductive Drug Culture Flourishes on the Internet

TV Industry Freezes Talks on Revising Rating System

Radio Ads Sales Rise Amid Consolidation

Fox-TCI Venture Nears Pact to Buy 40% Of Cablevision Sports for $850 Million

U.S. Companies Seek to Influence Digital TV Format

Clinton Won't Back Disney Boycott

TV Program Ratings Talk Stalled

Hundt Declares Against An AT&T-SBC Merger

Senate Panel Approves Bill On Encryption

Hundt Declares Opposition to AT&T-Bell Company Mergers

Bell Atlantic Execs Seek To Ease FCC's Merger Concerns

Thinking About Why Some Communications Mergers are Unthinkable

Access Reform and X-Factor orders
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Title: A Seductive Drug Culture Flourishes on the Internet
Source: New York Times (A1)
Author: Christopher S. Wren
Issue: Lifestyles!
Description: The Internet is chock full of information on how to create your
own drugs, what it's like to be high, the going rates for different drugs.
While there has been a vocal movement to keep children away from
pornographic Internet sites, there has not been as much concern about
keeping teens away from pro-drug sites. retired Gen. Barry R. McCaffrey,
Director of the White House Office of National Drug Control Policy, commented
about users (in every sense of the word) posting drug information, "The
question is not whether they have the right to put this kind of material out
there in the debate of ideas. The question is, Do parents, teachers, and
coaches and ministers understand that this information is out there?" One
online testimonial states that tripping on LSD "was one of the coolest
things I've ever done," almost as cool as debating universal service rates
for rural telcos.

Title: TV Industry Freezes Talks on Revising Rating System
Source: New York Times (A13)
Author: Lawrie Mifflin
Issue: V-Chip
Description: TV industry negotiators halted talks with advocacy groups
yesterday about revising the TV rating system because Vice President Al Gore
came out on the side of the advocacy groups. A statement from the National
Association of Broadcasters read "Due to the Vice President's unwarranted
intervention in the process, the N.A.B., the N.C.T.A [cable], and the
M.P.A.A [movies] have recessed talks on any changes in the TV ratings system
until further notice." People on the broadcasting side said Gore's comments
broke the parent advocacy groups' promises not to involve public officials
in the debate. Gore's press release encouraged negotiators to include the V,
S, L and T [like any good american the VP wants parents to be aware of
surreptitious bean by-products on TV posing as hamburgers, hotdogs, or
inner soles) ratings as well as to include indicators on the amount of
violence in Y-7 (need to be seven to watch) programs. How to evaluate
violence in cartoons or shows for young children has been a point of debate
in the negotiations.

Title: Radio Ads Sales Rise Amid Consolidation
Source: Wall Street Journal (B7)
Author: Lisa Brownlee
Issue: Radio
Description: Madison Avenue executives are worried that radio consolidation
will mean that a couple of companies will control ad rates in a given
market. "I think that you are seeing some rising prices" as well as " an
increase in the amount of advertising sold," says an industry analyst. Radio
advertising is sold at a cost of $6.50 per 1,000 listeners -- about half the
rate for television.

Title: Fox-TCI Venture Nears Pact to Buy 40% Of Cablevision Sports for $850
Million
Source: Wall Street Journal (B7)
Author: Mark Robichaux
Issue: Mergers
Description: A News Corp-TCI joint venture is close to buying a 40% share of
Cablevision Systems Corp's sports programming services including the Madison
Square Garden properties for $850 million.

Title: U.S. Companies Seek to Influence Digital TV Format
Source: Wall Street Journal (B7a)
Author: Jennifer Schenker
Issue: Digital TV
Description: Executives from Microsoft, Compaq, and Intel are in Europe
trying to influence the establishment of digital television standards that
are compatible with personal computers and interactive data services.
Broadcasters there fear that the PC industry will try to dominate the
broadcast industry.

Title: Clinton Won't Back Disney Boycott
Source: Washington Post (http://www.washingtonpost.com/) (A2)
Author: Peter Baker
Issue: Religion
Description: President Clinton, a Southern Baptist, said yesterday that he
will not abide by the vote of the Southern Baptist Convention to boycott
the Walt Disney Company.

Title: TV Program Ratings Talk Stalled
Source: Washington Post (http://www.washingtonpost.com/) (C5)
Author: Paul Farhi
Issue: V-Chip
Description: Vice President Gore endorsed several ideas favored by parents
organizations -- including adding content warnings S, V, and L -- and
television industry representatives abruptly broke off negotiations aimed
at revamping the system. "Due to the vice president's unwarranted
intervention in the process, the National Association of Broadcasters, the
National Cable Television Association, and the Motion Picture Association
of America have recessed talks...until further notice," the groups said in
a joint statement. [for more info see ]

Title: Hundt Declares Against An AT&T-SBC Merger
Source: Washington Post (http://www.washingtonpost.com/) (G1)
Author: Paul Farhi
Issue: Mergers
Description: Calling a potential union "unthinkable," Federal
Communications Chairman Reed Hundt declared open war on the rumored
AT&T-SBC merger. In an unusual announcement, Chairman Hundt spoke to a
rumored deal, but made clear that he thinks any potential AT&T-Baby Bell
merger would create a company whose market power could destroy competition
in the local and long distance markets.
[full text available at

Title: Senate Panel Approves Bill On Encryption
Source: Washington Post (http://www.washingtonpost.com/) (G2)
Author: Cassandra Burrell
Issue: Encryption/Privacy
Description: "Clearly, today's decision by the Senate Commerce Commission
is a step in the wrong direction," a statement by the Software Business
Alliance reads. The Committee approved a bill co-sponsored by Sen John
McCain (R-Ariz) and Sen John Kerrey (D-Mass) that would provide incentives
for developers of data-scrambling technology to provide law enforcement
officials with ways to crack the codes. Products without these "keys" would
face tougher review by the Department of Commerce.

Title: Hundt Declares Opposition to AT&T-Bell Company Mergers
Source: Telecommunications Reports Daily
Issue: Mergers
Description: Federal Communications Chairman Reed Hundt said that a merger
between AT&T and a Baby Bell is "unthinkable." Such a merger would far too
high a concentration of market share in the Bell companies local calling
area. AT&T Vice President Mark Rosenblum countered by saying "If a
partnership between a long distance company and a local RBOC can be
structured to
increase competition both in the BOC's home territory and in the states it
does not currently serve, then it ought to be considered." He added that the
Baby Bells have been dragging their feet in the process to opening their
markets to competition. Duane Ackerman of BellSouth counters that AT&T and
other long distance companies are backing off entry into local markets so
they can keep the Bells out of in-region long distance. "If AT&T is
successful in keeping us out of long distance, they have the best of both
worlds," Mr. Ackerman said. "They increase their own revenue while keeping
us out of their core business."

Title: Bell Atlantic Execs Seek To Ease FCC's Merger Concerns
Source: Telecommunications Reports Daily
Issue: Mergers
Description: Officials at the Federal Communications Commission are
reviewing the proposed Bell Atlantic-NYNEX merger and they are concerned
that Bell Atlantic had plans to compete with NYNEX before merger talks
began. Bell Atlantic Vice Chairman James G. Cullen has explained that Bell
Atlantic studies potential business opportunities "as a normal course of
business." But it
doesn't "commit to a course of action until it decides to spend money on a
project. Bell Atlantic never decided to budget funds to go into the local
telephone business in New York."

At the FCC
"Thinking About Why Some Communications Mergers are Unthinkable" FCC
Chairman Reed Hundt Calls Combination of AT&T and an RBOC "Unthinkable".

FCC denies petitions for stay of its Access Reform and X-Factor orders (FCC
97-216, CC Dockets 96-262, 94-1, 91-213, 95-72)
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Its Friday and we are outta here. Have a good weekend and we'll visit again
on Monday.