Communications-related Headlines for 7/7/97

A Congressman's Long Crusade for the Arts

Falling Sales Hit Publishers For 2nd Year

PC Industry Calls for a Truce in TV Wars

Legal Uncertainty Clouds Status of Contracts on Internet

Gate's largesse stirs a discomforting question: Is there indeed a computer
literacy?

Integrated Wireless Service May Be Coming Soon to a Windowsill Near You

Newsletters Find Haven on Line

Development Strategy: Close Information Gap

H&R Block Still Shopping On-Line Unit

Show Them the Money Trail

When Media Moguls Collide

Time Warner wins NYC cable news fight

In search of the I-Chip

FCC takes back channels 60-69

Networks to get leeway on kids preemptions

Hundt, Quello will clash over alcohol ads

Take a letter

Broadcasters lobby for loopholes in budget fight

Activist administration may stay out of cyber-commerce

Broadcasters welcome Minnow-less choices
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Title: A Congressman's Long Crusade for the Arts
Source: New York Times http://www.nytimes.com/(B1)
Author: Irvin Molotsky
Issue: Arts
Description: At 88 the oldest and longest serving member of the House,
Representative Sidney Yates (D-IL) is one of the leading defenders of the
National Endowment of the Arts. This year, House republicans have approved
budget legislation with only $10 million for the NEA (President Clinton
asked for $136 million) meant to be used to shut the Endowment down. Rep
Yates is hopeful that the NEA will finally get $99 million (the same amount
it received this fiscal year) after budget negotiations between the House
and Senate conclude. He also sees more, smaller grants going to make a
bigger impact on smaller communities. Republicans criticize the NEA for only
funding projects in New York, Chicago, and Los Angeles.

Title: Falling Sales Hit Publishers For 2nd Year
Source: New York Times http://www.nytimes.com/(D1)
Author: Doreen Carvajal
Issue: Publishing
Description: Hard-cover and paperback adult trade books sales dropped by 5.3
percent between 1995 and 1996. Book sales rose steadily in the early 90's
and peaked in 1994 when 513 million copies were sold. In the past two years
however, sales have dropped by 5% or more. Problems include reliance on
computerized sales that "compress the life cycle of books" and the rise of
conglomerate-owned publishing houses.

Title: PC Industry Calls for a Truce in TV Wars
Source: New York Times http://www.nytimes.com/(D2)
Author: Joel Brinkley
Issue: Digital TV
Description: Just 3 months ago, Compaq, Microsoft and Intel announced that
they were going to muscle their way into the television market valued at
$150 billion over the next 10 years. But IBM, Dell, Packard Bell,
Hewlett-Packard, Gateway 2000, and Sony have all announced that they do not
have plans to build digital TV receivers into their computers. Without the
support of other computer manufactures, the Compaq - Microsoft - Intel
coalition may be ineffective. Compaq is the nation's largest maker of PCs,
but only controls ten percent of the market.

Title: Legal Uncertainty Clouds Status of Contracts on Internet
Source: New York Times http://www.nytimes.com/(D3)
Author: Geanne Rosenberg
Issue: Electronic Commerce
Description: Traditionally commerce has been based on hard copy contracts
signed by the participating parties. Electronic commerce and the Internet
have changed that by allowing far-flung people trade goods without ever
meeting each other. Some states have passed legislation allowing digital
signatures, but many still have not. Legal scholars are still looking for
the first big case that will set precedent for all electronic commerce.

Title: Gate's largesse stirs a discomforting question: Is there indeed a
computer literacy?
Source: New York Times http://www.nytimes.com/(D3)
Author: Edward Rothstein
Issue: Education
Description: "Are we using computer technology because we have lost the
political will to fund education adequately?" asks Sherry Turkle, a MIT
social scientist http://epn.org/prospect/31/31turkf.html. In Technology
column, Rothstein points to a number initiatives and criticisms of education
technology. See Gates Library Foundation http://www.glf.org/pr.html,
National Education Association http://www.nea.org/cet/BRIEFS/brief9.html,
San Jose Mercury News
http://www.sjmercury.com/news/local/schools/main15.html, and Atlantic
Monthly's cover story "The Computer Delusion" by Todd Oppenheimer
http://www.theatlantic.com/issues/97jul/computer.htm.

Title: Integrated Wireless Service May Be Coming Soon to a Windowsill Near You
Source: New York Times http://www.nytimes.com/(D3)
Author: Mark Landler
Issue: InfoTech
Description: Cellularvision is determined to be the nation's first
intergrated wireless provider of voice video and data services. In
Manhattan, the company is already providing unlimited, high-bandwidth
Internet access for $49.95/month and a one time $199 set-up fee. The set up
fee includes a small receiver dish, modem and a set-top convertor box. The
service provides Internet access speeds at 4x that offered by local phone
company Nynex.

Title: Newsletters Find Haven on Line
Source: New York Times http://www.nytimes.com/(D7)
Author: Sreenath Sreenivasan
Issue: Publishing
Description: Many newsletters -- from the very big to the very small -- are
using the Internet to deliver their content. The Newsletter Publishers
Association estimates that 40% of all newsletter companies have web sites.
See Kiplinger online http://www.kiplinger.com, Cutter Information
http://www.cutter.com, Phillips Publishing International
http://www.phillips.com, Communications Today http://www.telecomweb.com,
and Release 1.0 http://www.edventure.com/realse1.

Title: Development Strategy: Close Information Gap
Source: Wall Street Journal http://www.wsj.com/ (A1)
Author: Bernard Wysocki, Jr.
Issue: International
Description: At a conference last month in Toronto hosted by the World
Bank, world leaders discussed the best way to close the information gap.
Experts debated on whether providing Internet connections for schools in
sub-Saharan Africa would be a key for economic prosperity or if, simpler
technologies, like radios would be more useful. The president of the World
Bank believes that both approaches are needed. In our "electronic global
village," 80% of the world's population can't make a phone call. Needed more
are initiatives like the one run by the International Fund for Agricultural
Development which links farmers in Latin America to new markets via the
Internet.

Title: H&R Block Still Shopping On-Line Unit
Source: Wall Street Journal http://www.wsj.com/ (A3)
Author: Jared Sandberg
Issue: Industry Trends
Description: H&R Block is still looking for a good offer for its 80%
stake in Compuserve. America Online has offered to buy it, but H&R Block
didn't like
AOL's offer. Compuserve hasn't been doing too well so "any successful bidder
will be faced with mounting a turnaround." Compuserve, however, is one of
the most popular Internet service providers in Europe.

Title: Show Them the Money Trail
Source: NewsWorks http://www.newsworks.com/NewsWorks/news/0,1009,,00.html
Issue: Campaign Fiance Reform
Description: For a short time, see a collection of campaign fiance reform
articles from around the country. The congressional probe into President
Clinton's fundraising activity won't deteriorate into a partisan witch hunt,
says Sen. Fred Thompson. This year, the fireworks begin July 8.

Title: SBC's Challenge to Telecom Act Could Hinge on Ruling That Separate
treatment of Bells Is Punitive
Source: Telecommunications Reports http://www.tr.com/ (p.1)
Issue: Telecommunications Act of 1996/Telephone Regulation
Description: SBC Communications Inc, is challenging the constitutionality of
line-of-business restrictions in the Telecommunications Act of 1996. SBC
says the Act improperly singles out Bell operating companies from other
local exchange carriers. A SBC executive said, "The lawsuit challenges only
that portion of the Act which singles out and excludes SBC from competing in
certain lines of business. SBC is not challenging those portions of the Act
which require all local exchange companies, including SBC, to open their
local networks to competition." On Capitol Hill, Rep Billy Tauzin (R-LA),
Chairman of the House Telcom Subcommittee, said that the law is not the
problem, its the way its being implemented -- blaming the Federal
Communications Commission.

Title: When Media Moguls Collide
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 4)
Author: John M. Higgins and Steve McClellan
Issue: Media Mergers
Description: Media executives have been closely watching the recent
bidding wars between News Corp. and Walt Disney for children's entertainment
and sports deals. News Corp., not Disney, got a hold of the Family Channel,
and News Corp. also secured Cablevision's SportsChannel to put together a
sports network which will challenge ESPN, owned by Disney. Fights like this
are going to become more common among big media companies. "As the biggest
players continue to gobble up other big players -- Viacom Inc. and Paramount
Communications Inc., Time Warner Inc. and Turner Broadcasting -- they become
emboldened to attack other companies' most lucrative niches."

Title: Time Warner wins NYC cable news fight
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 5)
Author: DP
Issue: Cable Regulation
Description: An appeals court ruled in Time Warner's favor that New York
City could not air News Corp's Fox News Channel on the city's public access
channels. The city was trying to force Time Warner to show Murdoch's
channels on the public access network after Time Warner wouldn't show them
on any commercial channels. The New York City government argued that the news
network, because it is based in the city, would bring in it a lot of jobs
and was news-based so it should be shown.

Title: In search of the I-Chip
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 10)
Author: Paige Albiniak
Issue: Internet content
Description: Last week President Clinton said he wanted to gather
industry leaders and representatives of Internet users, parent groups, and
educators to develop protections to shield children from objectionable
content on the Internet in a fashion similar to the television V-Chip.
Representative Ed Markey (D-Mass), according to one of his aides, isn't too hot
on the V-Chip analogy. Rep. Markey has presented a bill which would obligate
Internet service providers to provide customers with blocking software free
of cost. Rep. Billy Tauzin (R-LA), House Telecommunications Subcommittee
Chairman, agrees that children should be shielded from inappropriate
electronic materials, but a Tauzin aide stated that, "We think that should
happen in the form of a voluntary cooperative agreement with the Industry."
Rep. Tauzin is going to introduce a bill aimed at keeping the government from
bothering the Internet with new regulations.

Title: FCC takes back channels 60-69
Source: Broadcasting&Cable http://www.broadcastingcable.com/(pg. 14)
Author: Chris McConnell
Issue: Spectrum
Description: The FCC is going to take back channels 60-69 and give four
of them to public safety services and the rest to commercial services such
as mobile phones or two-way radio. The Commission is not eliminating the
possibility that those channels could be used for TV, possibly in an effort
to increase minority ownership in television.

Title: Networks to get leeway on kids preemptions
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 14)
Author: Chris McConnell
Issue: Children's TV
Description: The FCC will allow networks to move scheduled children's
educational programming around so as to make room for weekend sports. FCC
officials report that they will evaluate how the preempting worked after one
year. Stations must show three hours of 3educational programming for kids a
week and,
in a draft of the regulations, though cut from the final, if a show is
bumped more than 10% of a thirteen week run, the stations couldn't count it.

Title: Hundt, Quello will clash over alcohol ads
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 16)
Author: Chris McConnell
Issue: Advertising
Description: FCC Chairman Reed Hundt wants the FCC to investigate
hard-alcohol advertising on TV. FCC Commissioner James Quello doesn't
believe the FCC has the jurisdiction to work in that area. The FCC will
vote on the issue this week. Hundt and Ness are expected to vote for an
investigation and Quello and Chong will vote against. With a tie, nothing
will happen.

Title: Take a letter
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 16)
Author: B&C Staff
Issue: V-Chip
Description: House Telecommunications Subcommittee Grand Poo Bah Billy
Tauzin (R-La) was planning last week to send a letter to Jack Valenti, who
heads up the entertainment industry's side in the V-Chip debates, promising
that if negotiators can make a deal, broadcasters will not have to deal with
any ratings legislation for three years. Tauzin wanted House Speaker Newt
Gingrich (R-GA) and Rep Thomas Bliley (R-VA), Chairman of the House
Commerce Committee
to sign on to the letter. Rep Gingrich would only sign on if Rep Bliley did and
Rep Bliley wasn't ready yet to make promises without knowing the final deal.
There will be no such supportive letters for broadcasters coming from the
Senate.

Title: Broadcasters lobby for loopholes in budget fight
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 18)
Author: Paige Albiniak
Issue: Digital TV
Description: The budget bill chugging through the House-Senate conference
has some big wins for broadcasters in terms of spectrum flexibility and
deadlines. The Administration, however, is hoping to add some limitations.
The administration wants spectrum user fees, a set date for when the analog
channels must be returned, and penalties if broadcasters don't meet the
digital rollout deadlines. Ranking Commerce Committee member Rep. John
Dingell (D-Mich) agrees with the President. The conference committee could
start negotiations again tomorrow. "The biggest win for broadcasters so far
is the 'market tests' in both versions of the bill. Those tests would give
broadcasters use of the spectrum far beyond the targeted 2006 give-back
date." The article contains more details on broadcasting-related language
in the bill.

Title: Activist administration may stay out of cyber-commerce
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 18)
Author: PA
Issue: Internet Regulation
Description: In a report released last week, the Administration indicated
that it would not become involved in regulating Internet commerce. According
to the report, with no regulation, Internet commerce is supposed to reach
$200 billion by 2000.

Title: Broadcasters welcome Minnow-less choices
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 19)
Author: Chris McConnell
Issue: Digital TV
Description: Broadcasters are happy that Leslie Moonves, President of
CBS Entertainment, is co-chairman on the Administration's advisory group on
the public interest obligations of digital TV broadcasters. Broadcasters are
also happy that former
FCC Chairman Newton Minnow is not on the panel. The other co-chair is
Norman Ornstein of the American Enterprise Institute. President Clinton
supports free-time for candidates. In a radio address, Clinton said "That's
the least we can ask broadcasters, who are given access to the public
airwaves worth billions of dollars at no cost, with only the
requirement that they meet a basic public obligation." Ornstein has done much
writing in support of free-time for candidates. FCC Chairman Reed Hundt was
hoping to launch an FCC inquiry into broadcasters' public interest
obligations, but commissioners Quello and Chong have been resisting the
proposal.
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