The Benton Foundation's Headlines team has once again volunteered as back-up
elves at Macy's for the following dates and, therefore, will be unable to
provide you, our dedicated readers, with the headline service from
December 24 to January 2. Headlines will resume on Monday, January 5. We wish
everyone communications-filled holidays!
Arts
NYT: Southerner Is Selected to Head Arts Endowment
WP: White House Taps New Arts Chief
Telephone
TelecomAM: AT&T Won't Assess Residential Callers for Universal Service Costs
TelecomAM: MCI Business Customers Also Will See Universal Service Assessment
WP: AT&T Corp. Halts Efforts to Sell Local Residential Phone Service
WSJ: AT&T Chief Halts Hiring, Shifts Budget
WP: "Cram" and Punishment: Adding Up Mystery Phone Charges
Children's Television
WP: Japan's Cartoon Violence
Antitrust
WP: U.S. Recruits a Top Gun For Microsoft Showdown
WSJ: Antitrust Whiz Joins Justice Team vs. Microsoft
WSJ: Microsoft Seeks Alternative Ways to Comply With Court
NYT: Settlement Reached in Data-Storage Case
Online Services
WSJ: AOL Declares Victory Over Junk E-Mail Firm
NYT: AOL Wins Spam Battle
FCC Round-up
FCC: DTV Ancillary or Supplementary Services Fees
FCC: Commission Adopts Streamlined Auction Rules
TelecomAM: FCC Proposes Rulemaking on Rules for Spectrum Auctions
FCC: Commission Seeks Comment on Proposals to Improve Program Access
Rules
NYT: Freeze Unlikely On Cable Rates
CCB: O building on 19th & M
** Arts **
Title: Southerner Is Selected to Head Arts Endowment
Source: New York Times (A20)
http://www.nytimes.com
Author: Irvin Molotsky
Issue: Arts
Description: The White House announced last night that William Ivey, the
executive director of the Country Music Foundation, has been selected to be
the next chairman of the National Endowment for the Arts. Mr. Ivey is a
musicologist and folklorist who has served on panels at the NEA since 1976.
As a nominee from the South, it is expected that Mr. Ivey will easily move
through the Senate confirmation process, where much of the opposition to the
endowment comes from Southern members.
Title: White House Taps New Arts Chief
Source: Washington Post (D1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/19/062l-121997-idx.html
Author: Jacqueline Trescott
Issue: Arts
Description: The White House has selected the Country Music Foundation's
William Ivey to be the new chairman of the National Endowment for the Arts.
Mr. Ivey is best known in Washington as a proponent for the preservation of
historical recordings. He has also served on the President's Committee on
the Arts and Humanities. The NEA is the largest source of funding for the
arts in the US. Mr. Ivey will face Senate confirmation.
** Telephone **
Title: AT&T Won't Assess Residential Callers for Universal Service Costs
Source: Telecom AM---Dec. 19, 1997
http://www.telecommunications.com/am/
Issue: Universal Service
Description: AT&T has become the first long-distance carrier to announce
that its customers will not face new charges in the first half of 1998 to
support the carrier's higher universal service contributions. Instead, they
will use
the anticipated reductions in access charges, which it pays to local telcos
to access the local switched network, to offset its contribution. The
company's announcement follows a decision by the FCC to reduce the subsidy
paid to schools, libraries and rural healthcare providers to $675 million
in the first half of 1998. Fees collected from long distance carriers such
as AT&T, MCI, Sprint,
and Worldcom pay for the bulk of the federal fund.
Title: MCI Business Customers Also Will See Universal Service Assessment
Source: Telecom AM---Dec. 19, 1997
http://www.telecommunications.com/am/
Issue: Universal Service
Description: MCI, like AT&T, plans to assess business customers an
undetermined charge on their bills to help support its contribution to
federal universal fund. MCI, which already has passed on savings from 1997
access charge cuts and anticipated 1998 reductions to customers, said it has
no current plans to raise residential rates but could reevaluate that once
it reviews universal service costs.
Title: AT&T Corp. Halts Efforts to Sell Local Residential Phone Service
Source: Washington Post (G1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/19/125l-121997-idx.html
Author: Mike Mills
Issue: Competition
Description: After investing $3-$4 billion dollars over the last three years
on resale of local phone service, AT&T has formally halted all spending on
efforts to sell local service. The company only receives $65 million in
annual revenue from local service and loses $1.50 - $2 per local phone
subscriber monthly through resale of local service. A high-level AT&T
official said, "The courts better figure out how to define an economically
viable way to provide local service [to residential customers] or nobody's
going to invest in it." AT&T's new chairman, C. Michael Armstrong, is
expected to announce sweeping changes in the company next month. [For more
on competition in the local phone market see
http://www.benton.org/Policy/96act/#phone]
Title: AT&T Chief Halts Hiring, Shifts Budget
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John J. Keller
Issue: Corporate Retrenchment
Description: AT&T Chairman C. Michael Armstrong has frozen all hiring,
set stringent new compensation guidelines and redirected more than $2
billion in local-phone services spending. He hopes to plow much of the
savings into new networks and services that should correct AT&T's paltry
revenue growth. The redirected funding resulted in the sale of AT&T's
Universal Card unit to Citicorp for $4 billion. The hiring freeze could lead
to work-force cuts larger than the 17,000 planned 2 years ago,
according to people familiar with the company's plans. Mr. Armstrong is also
trying to cut expenses, which are currently more than $45 billion a year. To
do this, AT&T plans to find alternatives to the regional Bell companies to
cut local carrier fees; maybe even build their own systems.
Title: "Cram" and Punishment: Adding Up Mystery Phone Charges
Source: Washington Post (G1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/19/142l-121997-idx.html
Author: Cindy Skrzycki
Issue: Telephone Regulation
Description: In "The Regulators" column, a look at the mystery phone charges
that are starting to appear on customers' bills in the "Wild West of the
telecommunications industry." The deregulation of telecommunications
industry is causing a proliferation of providers and carriers -- some that
may add charges to your bill even if they are not legitimate. The Federal
Communications Commission is dealing with consumer complaints about
receiving bills for services -- Internet access, paging, etc -- customers
never ordered and do not want. The bad guys use a variety of ploys
including: running a contest, getting people to fill out entry cards that
include phone numbers and automatically sign people up for calling cards
with monthly fees.
** Children's Television **
Title: Japan's Cartoon Violence
Source: Washington Post (D1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/19/059l-121997-idx.html
Author: Lloyd Rose
Issue: Children's Television
Description: "Is there really such a thing a killer cartoon?" Nearly 700
people were taken to the hospital with seizures, convulsions or loss of
vision after watching a popular television cartoon in Japan on Tuesday. Some
200 victims -- mostly children -- remained hospitalized yesterday. Outraged
mothers are saying that the television networks are putting ratings before
children's health and are calling for the introduction of an electronic
screening device like the American V-chip. The show in question --
"Pokemon," or "Pocket Monsters" -- was developed by Nintendo which also
makes video games.
** Antitrust **
Title: U.S. Recruits a Top Gun For Microsoft Showdown
Source: Washington Post (G1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/19/130l-121997-idx.html
Author: David Segal
Issue: Antitrust
Description: The Justice Department -- the biggest law firm in the world --
has a staff of 340 antitrust lawyers, but has hired New York
"super-litigator" (he briefs, he files, he bills by the hour) David Boies to
handle the Microsoft case. Mr. Boies has been working for DOJ for about a
week and a half and is only charging half of his normal fee -- $550/hr (Gee,
Mom, you were right after all. What was I thinking when I majored in
English?) Tapping Mr. Boies signals "a stop-at-nothing eagerness to prevail
in its high-stakes fight over the marketing practices of the Redmond,
Wash.-based software giant."
Title: Antitrust Whiz Joins Justice Team vs. Microsoft
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Paul M. Barrett & John R. Wilke
Issue: Antitrust
Description: The Justice Dept. has fortified their ranks by hiring David
Boies, one of the nation's best-known antitrust litigators, to assist them
in their war with Microsoft. Mr. Boies said that one assignment he may take
on is helping the gov't. try to broaden its case beyond the allegation of
monopoly. He may also appear in court for the Justice Dept., he added, but
his precise role hasn't been determined. Mr. Boies impressive credentials
include the time when he helped IBM with a successful defense against a
massive governmental antitrust suit. Mr. Boies also said that he's still
"trying to understand what the facts are," but that ultimately he will help
determine whether Microsoft's behavior might be grounds for new claims under
the Sherman Antitrust Act.
Title: Microsoft Seeks Alternative Ways to Comply With Court
Source: Wall Street Journal (B4)
http://wsj.com/
Author: David Bank & Dean Takahashi
Issue: Antitrust
Description: Microsoft said it has considered alternative ways of
complying with a federal judge's preliminary injunction, implying it has a
fallback position for settling an escalating dispute with the Justice Dept.
The company said it would give PC makers 3 choices: 1) the integrated
operating system, 2) one without the browser that will not work properly, or
3) a
two-year-old version of Windows 95 that does not share files with the browser.
This response infuriated the DOJ and the agency asked Judge Jackson to fine the
company $1 million a day for alleged noncompliance with his order. Microsoft
VP, Brad Chase, said the judge's order meant "we're damned if we do, we're
damned if we don't." He admitted there are simple ways to deactivate
Internet Explorer, but asserted that they wouldn't comply with a literal
interpretation of the judge's order. "Competitors and the Justice Department
are trying to manipulate the situation to make it look like we are being
unreasonable," Mr. Chase said.
Title: Settlement Reached in Data-Storage Case
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/121997ibm.html
Author: Associated Press
Issue: Antitrust
Description: The IBM Corp. and Storage Technology Corp. reached a tentative
agreement with the U.S. Justice Department yesterday to resolve an
investigation of antitrust activities in the mainframe computer market. The
two corporations agreed to modify a 1996 agreement that would free Storage
Technology to sell its computer data storage systems to other channels. "As
a result of this case, StorgeTek will once again be able to compete
vigorously in the mainframe disk storage system market," said Joel Klein,
assistant Attorney General for antitrust. [no need to rub your eyes - this
antitrust story, believe it or not, REALLY isn't about Microsoft!]
** Online Services **
Title: AOL Declares Victory Over Junk E-Mail Firm
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Jared Sandberg
Issue: Online Services
Description: AOL proclaimed a major victory in federal court against Over
the Air Equipment, a sex-oriented junk e-mail company. "Over the Air" agreed
to pay undisclosed damages and cease sending unsolicited e-mail messages,
known as spam, to AOL members. The "victorious" announcement is part of a
public relations campaign to show that AOL, which receives as much
as 2.5 million pieces of spam a day, is aggressively targeting spammers. But
many observers are skeptical that success in the courts will bring success
against spam. The issue of junk sex mail is particularly nettlesome for
AOL, which has the largest concentration of child users in cyberspace.
Title: AOL Wins Spam Battle
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/121997spam.html
Author: Matt Richtel
Issue: Online Services
Description: In the first settlement of its kind, a company sending out bulk
email has agreed to pay damages to an Internet service provider. The ruling
is in response to a lawsuit filed by America Online this past October
against Over the Air Equipment Inc. for spamming AOL users with its
advertisements. While the settlement does not itself make law, it does
build onto an emerging picture of what bulk emailing practices will be allowed.
** FCC Round-up **
Title: DTV Ancillary or Supplementary Services Fees
Source: FCC
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1997/nrmm7021.html
Issue: Digital TV
Description: Commission Seeks Comments on Fee Alternatives for Ancillary or
Supplementary Services Offered by Digital Television Broadcasters.
Title: FCC Adopts Streamlined Auction Rules
Source: FCC
http://www.fcc.gov/Bureaus/Wireless/News_Releases/1997/nrwl7047.html
Issue: Spectrum
Description: "The Commission adopted comprehensive and streamlined rules for
all auctionable services, replacing rules adopted in 1994 which require the
Commission to adopt separate rules for each auction. The Commission also
sought further comment on the use of installment payments and other
financial incentives for small businesses, women, minorities, and rural
telephone companies."
Title: FCC Proposes Rulemaking on Rules for Spectrum Auctions
Source: Telecom AM---Dec. 19, 1997
http://www.telecommunications.com/am/
Issue: Spectrum
Description: The FCC adopted a notice of proposed rulemaking (NPRM) on its
spectrum rules, emphasizing the need for simplification and greater
efficiency. Chairman Kennard called the rulemaking "the culmination of a lot
of learning." Specific proposals included: 1) Bringing all auctions under
uniform rules; 2) Suspending installment payments until the Commission gets
authority to revoke licenses for nonpayment; 3) Tightening anti-collusion
rules; 4) Mandating minimum opening bids; and 5) Bidding in real time.
Commissioner Furchtgott-Roth said the plan "makes the Commission a banker"
without having the necessary expertise.
Title: Commission Seeks Comment on Proposals to Improve Program Access Rules
Source: FCC
http://www.fcc.gov/Bureaus/Cable/News_Releases/1997/nrcb7024.html
Issue: Cable
Description: "In order to ensure that all providers of multichannel video
services have a reasonable opportunity to secure the programming they need
to satisfy viewers, the Commission has adopted a notice seeking comment on
revisions to its program access rules. In enacting the program access
provisions of the 1992 Cable Act, Congress expressed its concern that
potential competitors to incumbent cable operators were unable to gain
access to the programming needed to provide a viable and competitive
multichannel alternative to cable. "
Title: Freeze Unlikely On Cable Rates
Source: New York Times (C2)
http://www.nytimes.com/
Author: Reuters
Issue: Cable
Description: Consumer groups and some politicians want the Federal
Communications Commission to impose a rate freeze on cable companies.
Commissioner Susan
Ness said, "regulation of rates is an absolute,
absolute last resort." William Kennard, FCC chairman, also said that
regulation should be a last resort but added, "I'm not ready to rule
anything out." The commission has proposed tightening rules that require
cable operators to share more lucrative programs with satellite-TV
companies and others selling rival video services and telephone carriers.
Thanks to the Washington Post for printing this new song coined by the FCC's
Common Carrier Bureau about the long proposed move of the Commission to The
Portals, a new building in Washington's southwest district:
(set to tune of "O Little Town of Bethlehem)
O building on 19th & M,
how we will miss thee;
Even though the date we move,
is still a mystery.
We will miss your ecru walls,
and oft waxed floors;
Not to mention ATMs,
and the convenient stores...
*********
...and we are outta here! Don't spend too much time in the malls and we'll
see you Monday.