Communications-related Headlines for 2/3/98

Telephony
WSJ: Sprint PCS' Subscriber Count Near One Million, at High End of
Estimates

Antitrust/Microsoft
WP: Ruling Halts 'Master' In Microsoft Case
WSJ: Subpoenas Issued in Probe Of Microsoft
WSJ: Microsoft Plans New First Page On the Internet

Internet
WP: Judge Freezes Internet 'Preservation' Fund

Legal Issues
WSJ: Bell Atlantic's Dispute With Ex-Agent CTC Now May Go to Trial
NYT: Prosecutors Study Computer Company in Reuters Case

Universal Service
FCC: Appointment to the Federal-State Joint Board on Universal Service

Funding
WP: Clinton Asks Big Increases for Science, Technology Research
WP: Clinton Seeks More Arts Funds

** Telephony **

Title: Sprint PCS' Subscriber Count Near One Million, at High End of Estimates
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Elizabeth Jensen
Issue: Wireless
Description: Sprint PCS has signed up nearly one million subscribers for its
digital wireless phone service, presenting a formidable challenge to
entrenched players such as AT&T. Sprint PCS is the highest-profile new
wireless company to be launched in the past year and is building the largest
national system to rival AT&T's. But Sprint watchers have been frustrated by
the company's refusal to release any data until now. For example, the
company said it will announce that its average monthly revenue per
subscriber in 1997 was about $64. While that tracks the average PCS company,
it is well ahead of the average cellular provider.

** Antitrust/Microsoft **

Title: Ruling Halts 'Master' In Microsoft Case
Source: Washington Post (D1,D4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/03/112l-020398-idx.html
Author: Rajiv Chandrasekaran and Elizabeth Corcoran
Issue: Antitrust
Description: A federal appeals court ruled yesterday that Lawrence Lessig, a
Harvard professor and technology expert, appointed "special master" to study
technical issues in the Justice Department's lawsuit against Microsoft, must
discontinue his work until a three-judge panel reviews his role in the case
more carefully. The ruling was delivered by the U.S. Court of Appeals for
the District of Columbia one day after Microsoft filed its latest legal
brief to dismiss Professor Lessig.

Title: Subpoenas Issued in Probe Of Microsoft
Source: Wall Street Journal (A3)
http://wsj.com/
Author: David Bank
Issue: Antitrust
Description: Attorney generals from 11 states issued new subpoenas in their
antitrust probe of Microsoft, broadening their investigation to include the
software giant's marketing practices for Windows 98. But as the states'
investigation widened, Microsoft won a round in the federal case brought by
the Justice Dept. The U.S. Court of Appeals for D.C. granted the company's
motion to suspend the inquiry of a special master who was appointed by a
lower court to sort out the legal and technical issues in the case.
Microsoft objects to the appointment of Professor Lawrence Lessig on
procedural grounds and claimed that Mr. Lessig was biased against the company.

Title: Microsoft Plans New First Page On the Internet
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Kara Swisher
Issue: Microsoft
Description: Microsoft is developing a new home page, code-named
"start.com," that will be launched in late summer or early fall. Its
features will include many of its Web-based properties, free e-mail, a
search engine called Yukon and an ability for users to personalize the page
to include stock quotes, weather and news of their choice. Microsoft
officials said the new site isn't meant to replace its Web-based proprietary
on-line service called the Microsoft Network. Instead, it is entering the
fast-paced race to become a premiere destination spot on the Web, by better
integrating its offerings.

** Internet **

Title: Judge Freezes Internet 'Preservation' Fund
Source: Washington Post (A6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/03/077l-020398-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Regulation
Description: Yesterday, a federal judge issued a preliminary injunction
preventing the U.S. government from "tapping a $46 million fund set up to
promote the Internet's 'preservation and enhancement.'" The judge said that
the endowment is generated by user surcharges that likely constitute an
illegal tax. The decision could make it difficult for the Clinton
administration to pay for the development of a "next generation" Internet
this year.

** Legal Issues **

Title: Bell Atlantic's Dispute With Ex-Agent CTC Now May Go to Trial
Source: Wall Street Journal (B7)
http://wsj.com/
Issue: Competition/Legal Issues
Description: A dispute between Bell Atlantic and its former agent CTC Comm.
may go to trial following a federal court ruling. Judge Wood of the U.S.
District Court in Manhattan issue a temporary restraining order against CTC,
preventing the company from selling local telephone services to customers it
previously served as a Bell Atlantic agent. CTC recently began acting as a
reseller of local phone service, competing with its former partner, Bell
Atlantic. In a lawsuit filed last month, CTC charged Bell Atlantic with
failing to open its markets to local competition. Bell Atlantic, in a news
release, hailed the court's ruling as a victory, saying, "Bell Atlantic is
likely to succeed on the merits of its claim that CTC violated the
non-compete clause in its sales agency contract with Bell Atlantic."

Title: Prosecutors Study Computer Company in Reuters Case
Source: New York Times (D6)
http://www.nytimes.com/library/cyber/week/020398reuters.html
Author: Kurt Eichenwald
Issue: Legal Issues
Description: Federal prosecutors are investigating the relationship between
Reuters Holdings PLC and Cyberspace Research Associates Inc., a Manhattan
based company. They believe that Cyberspace Research may have been
commissioned to steal information electronically from Bloomberg LP, one of
Reuters competitors. Prosecutors are said to believe that the New York
company was working with Reuters Analystics Inc. to assist it in obtaining
information about Bloomberg's operating code. Robert Crooke, a spokesman for
Reuters America, and Chris Taylor, a spokeswoman for Bloomberg, both
declined to comment.

** Universal Service **

Title: Appointment to the Federal-State Joint Board on Universal Service
Source: FCC
http://www.fcc.gov
Issue: Universal Service
Description: Commissioner Gloria Tristani has been appointed to the
Federal-State Joint Board on Universal Service by FCC Chairman, William Kennard.

** Funding **

Title: Clinton Asks Big Increases for Science, Technology Research
Source: Washington Post (A9)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/03/088l-020398-idx.html
Author: Curt Suplee
Issue: Funding/Science & Technology
Description: The Clinton Administration has proposed a sizable increase in
funding for science and technology in fiscal 1999. "Overall, the budget
requests $78.2 billion -- a comparatively modest expansion of about $2
million, or 3 percent above 1998 levels -- for military and civilian
research programs combined." But other agencies, including the Department of
Energy, National Institutes of Health and the National Science Foundation,
are also up for substantial increases, reflecting the administrations
support of energy efficiency, medical research, climate studies and science
education.

Title: Clinton Seeks More Arts Funds
Source: Washington Post (B1,B5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/03/013l-020398-idx.html
Author: Jacqueline Trescott
Issue: Arts
Description: Yesterday, President Clinton asked Capitol Hill lawmakers for a
substantial increase in the fiscal 1999 budget for the National Endowment
for the Arts. The president proposed $136 million, matching the strategy he
used last year when he requested the same amount. In his proposal, Clinton
also requested modest increases for other federal cultural agencies.
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