Communications-related Headlines for 7/25/2000

TELEPHONY
Confusion Over Phone Bills Spurs Action from
Regulators (SJM)
Deutsche Telekom Stands To Gain a U.S. Foothold (NYT)
EU Raises Concerns With U.S. Over Proposed Telecoms Law (WP)
France Telekom Buys 35% Stake In Poland's State Phone Company (WSJ)
'Best Practices' for Creating Open Markets (FCC)
Nationwide Implementation of Access to Telecommunications
Relay Services (FCC)
TELEVISION
Congress Set to Sort out Mixed Digital TV Signals (USA)
Bickering Delays Retail Debut of Set-top Cable Boxes (USA)

INTERNET
FBI Makes Case For Net Wiretaps (WP)
The Internet Can't Free China (NYT)
King E-Novel Short of Expected Demand (NYT)
Rivals Unite to Challenge AOL Chat System (WP)

TELEPHONY

CONFUSION OVER PHONE BILLS SPURS ACTION FROM REGULATORS
Issue: Telephony
As a result of increasing complaints about confusing phone bills and
unauthorized charges, federal and state regulators said Monday they are
developing tough new requirements for clear and accurate phone bills. "We
get many, many thousands of complaints every year from consumers who feel
that they are being taken advantage of in the (phone service) marketplace,"
said FCC Chairman William Kennard at a meeting of the National Association
of Regulatory Commissioners. A national group of state regulators has
drafted a series of more rigid rules that they expect many states to adopt
through their respective utilities commissions or state legislatures. The
proposed new rules would help phone customers by requiring phone companies
to send bills according to a certain minimum cycle (instead of sporadically,
as some companies do); provide rate-change information in a timely manner
and in clear language; give customers the ability to "block" added charges
on their phone bills; give customers a specified time frame to revoke the
purchases of certain services before the billing starts; and provide bills
that clearly show a customer's billing status and any inaccuracies.
[SOURCE: San Jose Mercury News/Los Angeles Times ]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/034262.htm)

DEUTSCHE TELEKOM STANDS TO GAIN A U.S. FOOTHOLD
Issue: Mergers
Although VoiceStream Wireless is only the 8th-largest wireless carrier in
the US, its value to Deutsche Telekom are the licenses it holds that could
potentially serve 70% of the US population (sorry CA and parts of the
Southeast). VoiceStream lost $203 million in the 1st quarter, but DT, the
2nd largest phone carrier in the world, will pay $50.7 billion for the
company's national reach. The deal will give DT the national footprint it
wants in the US and provide VoiceStream with the resources (read: cash) it
needs to complete its jigsaw puzzle network and prepare to offer the next
generation of wireless services.
[SOURCE: New York Times (C10), AUTHOR: Simon Romero]
(http://www.nytimes.com/library/financial/072500deutsche-telekom.html)
See Also:
DEUTSCHE TELEKOM FACES LAWMAKERS' OPPOSITION
[SOURCE: Wall Street Journal (A2), Author: Jill Carroll & Daniel Schwammenthal]
(http://interactive.wsj.com/articles/SB964482704616516503.htm)
BEHIND-THE-SCENES JOCKEYING INTENSIFIES IN DEUTSCHE TELEKOM DEAL
A look at the three prong attack needed to complete the deal: keep Congress
from acting to restrict foreign ownership, get the White House to approve
deal and get the FCC to OK the transfer of wireless licenses.
[SOURCE: New York Times (C1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/library/financial/072500deutsche-regulate.html)
WIRELESS GROWTH PUT PREMIUM ON VOICESTREAM PRICE
[SOURCE: Washington Post (E1), AUTHOR: Peter S.
Goodman]
(http://washingtonpost.com/wp-dyn/articles/A36129-2000Jul24.html)

EU RAISES CONCERNS WITH U.S. OVER PROPOSED TELECOMS LAW
Issue: International
European Union trade chief Pascal Lamy has written to U.S. Trade
Representative Charlene Barshefsky to express concern over a proposed U.S.
law that could effectively block Deutsche Telekom AG's takeover of U.S. firm
VoiceStream Wireless. "What we know of what is being put forward in Congress
goes against commitments the U.S. has taken in the WTO (World Trade
Organization) in the telecommunications agreement," said Lamy's spokesman
Anthony Gooch. The measure, proposed by U.S. Senator Ernest Hollings would
close a loophole permitting acquisitions of U.S. telecommunications firms by
foreign companies that are more than 25 percent state-owned. Willy Helin,
spokesman for the EU delegation in Washington, said on Sunday that the EU
could file a WTO complaint against Washington if Congress blocked majority
state-owned Deutsche Telekom's proposed $50.7 billion takeover of
VoiceStream.
[SOURCE: Washington Post, AUTHOR: Reuters]
(http://washingtonpost.com/wp-dyn/articles/A39530-2000Jul25.html)

FRANCE TELEKOM BUYS 35% STAKE IN POLAND'S STATE PHONE COMPANY
Issue: International
France Telecom SA and Polish conglomerate Kulczyk Holding SA are expected to
sign an agreement today to buy 35% of Poland's state telephone company,
Telekomunikacja Polska SA (TPSA), at a cost of 18.62 billion zlotys ($4.33
billion U.S). TPSA controls 95% of Polands's fixed-line phone market. The
French operation will buy 25% and Kulczyk will buy 10% of TPSA. The deal
must meet regulatory approval. The deal would allow the partners to gain
control of TPSA in 2001.
[SOURCE: Wall Street Journal (C14), Author: Elizabeth Williamson]
(http://interactive.wsj.com/articles/SB964475490117116887.htm)

'BEST PRACTICES' FOR CREATING OPEN MARKETS
Issue: Competition
In prepared remarks at the summer meeting of the National Association of
Regulatory Utility Commissioners (NARUC) in Los Angeles, California, FCC
Chairman Kennard hailed the federal-state partnership as a pro-competitive
tool for opening markets and increasing access for all Americans. He said,
"We have learned that when we link arms and give a voice to the voiceless,
we speak with a powerful voice indeed. We have learned that when we are
working in partnership, industry cannot exploit our differences. The hardest
fights are about the haves and the have nots, when we are the only voice for
the have nots. Regulators fight those battles alone, and they are the fights
we are winning." He detailed how the federal-state partnership has promoted
competition and access in the telecommunications industry: opening phone
monopolies, delegating powers, creating the E-rate, and protecting consumers
through enforcement.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/2000/stwek061.html)

NATIONWIDE IMPLEMENTATION OF ACCESS TO TELECOMMUNICATIONS RELAY SERVICES
Issue: Disabilities
The FCC required all telecommunications carriers nationwide to implement
three-digit, 711, dialing for access to all Telecommunications Relay
Services (TRS). This new dialing arrangement will supplement existing
systems in most states that require 7 or 10 digit numbers in order to
initiate relay calls. TRS facilitates telephone conversations between people
who do and those who do not have hearing or speech disabilities. The FCC
noted that its new rule will eliminate the difficulties that individuals
have with finding or remembering various relay numbers as they travel from
state to state. Bothvoice and TRSusers will be able to initiate a call from
any telephone, anywhere in the United States, without having to remember and
dial a 7 or 10-digit number.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2000/nrcc0038.html)
See Also:
CHAIRMAN KENNARD'S STATEMENT ON ANNIVERSARY OF ADA AND SUPPORTING
THREE DISABILITY COMMISSION ITEMS
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/2000/stwek059.html)

TELEVISION

CONGRESS SET TO SORT OUT MIXED DIGITAL TV SIGNALS
Issue: DTV
While more than 100 stations are already broadcasting DTV signals
nationwide, not many viewers have enjoyed the future of TV. In addition to
expensive digital receivers, homeowners also often need rooftop antennas for
adequate reception. A House Commerce subcommittee is holding a hearing today
to get an update on issues related to the transition. Sinclair Broadcasting,
which has 50 stations, is calling for improvements to the current
transmission standard, 8-VSB, because of reception problems. Recently, the
major networks told the Federal Communications Commission that they favor
more testing, including that of an alternative standard, supported by
Sinclair, called COFDM. A recent survey of 200 DTV owners found that 96% are
satisfied with picture quality, especially that of high-definition TV
(HDTV), according to the National Consumers League.
[SOURCE: USAToday (3D), AUTHOR: Mike Snider]
(http://www.usatoday.com/usatonline/20000725/2485431s.htm)
See Also:
HIGH DEFINITION TELEVISION
Live Webcast -- Tuesday, July 25, 2000 10:00 a.m. in 2123 Rayburn House
Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection
oversight hearing on High Definition Television (HDTV) and related matters.
Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/8860cda2d1c6e902852569260071eb9a?OpenDocument)

BICKERING DELAYS RETAIL OF SET-TOP BOXES
Issue: Cable/TV
In 1998, the Federal Communications Commission ruled that by July 1 of this
year, the cable industry must offer consumers a set-top box that would be
compatible with all different cable systems. This new breed of digital box
would come complete with features such as interactive games, Web surfing and
digital picture storage and would allow users to even bring it along when
they move. But no companies are making the new digital boxes and no
retailers are ordering them. And, citing high prices and squabbles over
revenue sharing and technology standards, they say retail sale is at least a
year away. "Customers are not knocking on the door saying we want these
boxes," says Rick Borinstein, senior vice president of Radio Shack [funny,
would you expect them to want something that does not exist yet?]. The main
problem is the economics of the set-top boxes, which could cost $300 to
$1,000 when they hit stores.
[SOURCE: USAToday (1B), AUTHOR: Edward Iwata]
(http://www.usatoday.com/usatonline/20000725/2485480s.htm)

INTERNET

FBI MAKES CASE FOR WIRETAPS
Issue: Privacy/Security
Federal law enforcement officials defended the FBI's controversial Internet
wiretap system, "Carnivore," in front of Congress yesterday. Civil liberties
groups and Internet service providers are concerned that in sniffing out
potential criminal conduct, the new system also could scan private
information about legal activities, taking in vast amounts of information
from innocent people as well as the suspect. FBI officials insisted that
Carnivore actually provides greater privacy than previous methods of
gathering electronic information because it can fine-tune what the machine
hands over to investigators. Barry Steinhardt, associate director of the
American Civil Liberties Union, said in his testimony: "Carnivore is roughly
equivalent to a wiretap capable of accessing the contents of the
conversations of all the phone company's customers, with the 'assurance'
that the FBI will record only conversations of the specified target." [See
more at www.epic.org]
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-dyn/articles/A38301-2000Jul24.html)

THE INTERNET CAN'T FREE CHINA
Issue: International
[Op-Ed] "When over 100 million people in China can get on the Net,"
President Clinton has argued, "it will be impossible to maintain a closed
political and economic society." But will it? Not when the government can
trace the addresses of users that are sending or receiving unapproved
information, not when filtering technology can be installed at the
facilities of Internet service providers, not when the majority of Chinese
may access the Net through mobile phones or set-top boxes. Luh concludes: As
Western companies work to protect copyrights and enhance the security of
information they collect, new techniques for control of Internet
communication are being developed every day. Even if American companies do
not sell their innovations to China directly, the Chinese will be able to
develop them on their own or buy them from other nations. The Internet won't
be free in China until other influences force the country to lift its most
insidious trade barrier: the ban on ideas that threaten Communist Party rule.
[SOURCE: New York Times (A29), AUTHOR: James Luh]
(http://www.nytimes.com/yr/mo/day/oped/25luh.html)

KING E-NOVEL SHORT OF EXPECTED DEMAND
Issue: Publishing
Just 41,000 Stephen King fans downloaded the first chapter of "The Plant"
from the author's Web site. [Just 41,000? We'll take it] Amazon.com is
handling payments for the electronic book and reported it had collected
25,000 in credit card payments -- another 7,000 customers agreed to send a
check or cash. Mr. King asked readers to pay him a dollar for each chapter
they downloaded, and warned that he would not post new installments unless
he received payments for at least 75 percent of the downloads. Jeff Bezos,
the chief executive of Amazon.com, said he hoped that the honor-system model
might inspire others to try distributing books like "shareware," software
circulated on the Internet with payment expected later. "If you can make it
easy for people, people are going to be willing to pay," he said. The
American Booksellers Association is disappointed Mr. King decided on Amazon
rather than the association's Booksense Web site.
[SOURCE: New York Times (C8), AUTHOR: David Kirkpatrick]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/25king.html)

RIVALS UNITE TO CHALLENGE AOL CHAT SYSTEM
Issue: Internet
Amid complaints that AOL's Instant Messaging (AIM) service is dominating the
Instant Messaging field, Microsoft's MSN network announced it has joined
with AT&T, ExciteAtHome and others to formally challenge AOL's
dominance of instant messaging software. The new coalition is hoping to
create a common open standard for instant messaging. To date, instant
messages have been confined to their own Internet provider's network -- a bit
like telephone users not being able to call friends signed up with other
operators. AOL's AIM messaging network dwarfs all competitors combined. AOL
has cited security and privacy concerns in declining links with outside
networks. "Internet users want to exchange instant messages with each other,
regardless of which service they use," Brian Park, a senior producer at
alliance member Yahoo! said in a statement issued in London. The alliance
will be called IMUnified and will set out common specifications by the end
of next month to allow their networks to be linked up.
[SOURCE: Washington Post, AUTHOR: Richard Meares]
(http://washingtonpost.com/wp-dyn/articles/A39561-2000Jul25.html)

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The Benton Foundation's Communications Policy Program (CPP)
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