Communications-related Headlines for 12/9/97

Universal Service and Access
WSJ: New Phone Tax
Free!: US Internet access near-universal, study finds

Jobs
WSJ: Contributors to Pools of Company Know-How Are Valued Employees

Television
WSJ: AT&T Ends DirecTV Pact; May Join Rivals
WSJ: Dow Jones, GE's NBC Agree on Plan To Consolidate TV Channels
Overseas

Encryption
NYT: Court Hears Appeal in Encryption Case

Advertising
WSJ: U.S. May Outpace World '98 Ad Outlays

** Universal Service and Access **

Title: New Phone Tax
Source: Wall Street Journal
http://wsj.com/ (A22)
Author: WSJ Editorial Staff
Issue: Universal Service
Description: New universal service contributions could cost consumers
$25/year starting January 1. The tax will be seen in consumers' long
distance bills and will go to pay for wiring schools and libraries to the
Internet. When leaving the FCC, then-Chairman Reed Hundt told the staff that
they had "done more for K-12 education than the federal government has ever
done before, with the sole exception of the school lunch program." But, the
editorial claims, half of the nation's classrooms are already wired because
of the efforts of local school boards and "marvelous private-sector
efforts." Many carriers are talking about itemizing universal service
contributions on customers' bills. "That way consumers can see what they are
paying for, which is never a bad idea." [For more on the new universal
service rules see http://www.benton.org/Updates/summary.html]

Title: US Internet access near-universal, study finds
Source: Free! The Freedom Forum Online
http://www.freedomforum.org/technology/1997/12/08access.asp
Author: Adam Clayton Powell III
Issue: Universal Service
Description: A study by Northwestern University's Shane Greenstein found
that by last spring, 75% of the US population lived in a county with four or
more Internet service providers (ISPs). Access to four competing providers
almost always assures "cheap service," which Prof Greenstein defines as
$20/month or less for unlimited Internet use. Only 12% of the US population
lives in counties with little or no in-county ISPs, but most of them have
access via adjacent counties. "McDonald's is everywhere, and they didn't
spread this fast," said Prof Greenstein. He has tracked 3,531 national and
local ISPs for his study which will continue into 1998. The work is
supported by a grant from the Council on Library Resources. The study
measures access, not service, so the rate of adoption of Internet services
by low-income families within each county was no addressed. [The Freedom
Forum's new online news service "Free!" launched yesterday at
www.freedomforum.org] [For more on Universal Service & Access Issues see
http://www.benton.org/Policy/Uniserv/]

** Jobs **

Title: Contributors to Pools of Company Know-How Are Valued Employees
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Hal Lancaster hlancast( at )wsj.com
Issue: Jobs
Description: "If people take the time to enhance their own knowledge base
and expertise, they will find their career prospects and potential
broadening significantly." Corporate interest in knowledge management is
increasing with its investment in intellectual capital. "You have to budget
the time you spend perusing intellectual capital. Those who do this
effectively advance faster." Employees must also add to a company's
knowledge base -- contributions are beginning to be added to companies'
appraisal and compensation systems. Employees also need to be good writers
and librarians -- organizing, describing, and tagging knowledge -- so that
others can find and use it.

** Television **

Title: AT&T Ends DirecTV Pact; May Join Rivals
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Stephanie Mehta
Issue: Corporate Retrenchment/DBS
Description: Long distance giant AT&T will sell back its equity stake in
Hughes Electronics Corp's DirecTV satellite service. The venture, in which
AT&T offered discounts on DirecTV equipment and services to its best
customers, wasn't working well. Analysts believe the move may free up AT&T
to team up with cable television operators to offer high-speed Internet
service and local phone service.

Title: Dow Jones, GE's NBC Agree on Plan To Consolidate TV Channels Overseas
Source: Wall Street Journal
http://wsj.com/(B7)
Author: WSJ Staff Reporter
Issue: Television
Description: Dow Jones Co and General Electric's NBC will announce a
television alliance today that includes consolidation of the companies'
business-news channels in Europe and Asia and a close collaboration between
cable channel CNBC and The Wall Street Journal in the US. CNBC will be
rebranded as a service of NBC and Dow Jones. CNBC will have the world-wide
TV rights to Dow Jones's editorials, as well as on-air access to reporters
and editors.

** Encryption **

Title: Court Hears Appeal in Encryption Case
Source: New York Times (D5)
http://www.nytimes.com/library/cyber/week/120997encrypt-bernstein.html
Author: John Markoff
Issue: Encryption
Description: Yesterday, a Federal appeals court heard arguments in a suit
contending that Government controls placed on the export of data-scrambling
software illegally restricts free speech. The case revolves around a 1995
ruling that Government attempts to control the export of encryption software
were unconstitutional. Under current export regulations, "it is legal to
send computer source code - the actual text a programmer writes - overseas
in print form but not as electronic text via the Internet."
The Government argues that it isn't speech that is being restricted but the
medium of the Internet, which makes it easy for foreigners to use source
code to encrypt data. "The judges seem skeptical about that argument."
Regardless of the judges decision, this case will most likely result in an
appeal to the Supreme Court.

** Advertising **

Title: U.S. May Outpace World '98 Ad Outlays
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Sally Goll Beatty & Yumiko Ono
Issue: Advertising
Description: Total US advertising expenditures will rise 6.2% to $198.4
billion in 1998 according to an analyst for McCann-Erickson. The US accounts
for ~45% of world-wide ad spending. Companies have been looking aboard for
growth -- especially in Asia -- but ad spending outside the US will not grow
as fast.
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