Communications-related Headlines for 7/1/99

MEDIA & SOCIETY
Study: Educational Content on Kids' TV 'Questionable' (WP)
V-chip Arrives to Fuzzy Reception (USA)
Australia Passes Law on Limiting Internet (CyberTimes)
Our Daily Dose of Death (WP)

INTERNET
Yahoo Angers Geocities Member with Copyright Rules (CyberTimes)
Chain of Foolery on the Internet (NYT)
New Hard Sell On the Internet: Buy Our Service. Get a Free PC (WSJ)

MERGERS
F.C.C.'s Give and Take in SBC-Ameritech Merger Deal (NYT)
Press Statement of Commissioners Regarding the Proposed SBC-Ameritech
Conditions (FCC)
Small, Local Telephone Companies Prepare for Windfall from SBC
Ameritect
Merger (WSJ)
Charter Buys Yet Another Cable System (WSJ)

FCC
FCC Set to Join Undersea Cable Probe, Increasing Odds for Changes in
Industry (WSJ)
FCC Releases Consent Decree (FCC)

BROADBAND
AT&T Atones for ( at )Home Glitch (SJM)

WIRELESS
Data Basics: For Cell Calls, D.C. Area is Among the Priciest (WP)

MEDIA & SOCIETY

STUDY: EDUCATIONAL CONTENT ON KIDS' TV 'QUESTIONABLE'
Issue: Television
The television industry is providing more shows for young people, but the
educational value of some of the programs are questionable, reporter the
Annenberg Public Policy Center of the University of Pennsylvania. They say the
number of shows for children rose 12 percent in the 1998-99 season but deemed
21.1 percent of the total programming "minimally educational.'' Shows such as
"NBA Inside Stuff'' and "Peer Pressure'' continue to receive the educational
and informational label even though they contain minimal educational content,
the report said. Parents report their children spend, on average, 3.25 hours
per day watching television or videos and 48.2 percent of the children have
television sets in their bedrooms. Researchers said the increased number of
children's programs is due mostly to a Federal Communication Commission rule
that helps broadcasters speed their license renewal by airing a minimum of
three hours a week of educational and informational television for children.
Annenberg research fellow Kelly L. Schmitt commented: "Shows such as 'Duck
Tales' and 'Hercules' were offered by stations to satisfy the educational needs
of children, even though syndicators and networks claimed they were not
designed for that purpose.''
[SOURCE: Washington Post (Online) 29 June, AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/national/daily/june99/tv28.htm)

V-CHIP ARRIVES TO FUZZY RECEPTION
Issue: Television
The V-chip has finally arrived to TV set near you. As of today, the Federal
Communication Commission requires half of all new TV sets to include a chip
that allows people to block out shows that are accompanied by certain ratings.
On-screen logos are supposed to inform parents of the age-appropriateness,
violence, sexual and other objectionable content of TV programs. In one test
run by a TV manufacture, however, only 30% of programs were found to actually
carry the on-screen ratings. Another barrier to the V-chip's use is the
technical aspect of programming TVs to block certain shows. "If I tried to use
something like that with my son, he'd laugh at me," said one parent. "If I
can't figure out how to program a VCR, what am I going to do with a V-chip TV?
I'd have to ask him to program the shows so he can't watch them. Does that make
any sense?" Many parents also report being unaware of either the chip or the
rating system.
[SOURCE: USA Today (3D), AUTHOR: Gary Levin]
(http://www.usatoday.com/life/enter/tv/letindex.htm)

AUSTRALIA PASSES LAW ON LIMITING INTERNET
Issue: Internet
The Australian government on Wednesday passed the Broadcasting Services
Amendment (Online Services) Bill 1999 which will effectively force Australian
Internet service providers to remove objectionable material from Australian Web
sites. The bill also proposes that the Internet industry develop the necessary
"codes of practice" to block access to similar oversees sites. The law was
proposed by Senator Richard Alston, the Minister for Communications,
Information Technology and the Arts to help protect children from being exposed
to objectionable material on the Internet. Senator Kate Lundy a leading
Australian Labor Party Senator opposed the bill. Lundy, along with the
Electronic Frontiers Australia (EFA) group, an electronic civil liberties
organizations, says the bill was approved too quickly and could damage the
future of Australian's information economy. Darce Cassidy, the executive
director of the EFA, said Alston ignored community concerns about free speech
and has failed to comprehend the nature of the Internet. The law, which is
scheduled to go into effect Jan. 1, 2000, will be enforced by the nation's
broadcasting regulators, the Australian Broadcasting Authority, who will
contact the ISPs who post objectionable material. If the ISPs do not comply,
they can be fined up to US$18,000.
[SOURCE: New York Times (CyberTimes), AUTHOR: Jamie Murphy]
(http://www.nytimes.com/library/tech/99/07/cyber/articles/01australia.html)

OUR DAILY DOSE OF DEATH
Issue: Media & Society
[Op-Ed] William B. Ruger Sr., chairman of the board of Sturm, Ruger & Co.,
challenges the media for not portraying the responsible use of recreational
firearms and says he is outraged at seeing the "gang-banger" on the news. He
says the media has a subconscious anti-gun bias. He does not want to see "the
graphic, vicious and sadistic films, television shows, video games and music
lyrical that trumpet wanton killing," and is concerned with the breakdown of
the family, inadequate child supervision and the lack of a "decent respect for
the opinions of others." Nothing will be accomplished, he says, "until we stop
deluding ourselves into thinking that society's violence is because of firearms
and that the media bear no responsibility for this witches' brew." The firearms
industry is trying to promote responsible use of firearms, he says. The media
should show some self-restraint and should not hide behind the First Amendment
rights and incite antisocial behavior.
[SOURCE: Washington Post (A29), AUTHOR: William B. Ruger, chairman of the board
of Sturm, Ruger & Co., the largest U.S. firearms manufacturer]
(http://washingtonpost.com/wp-srv/WPlate/1999-07/01/113l-070199-idx.html)

INTERNET

YAHOO ANGERS GEOCITIES MEMBER WITH COPYRIGHT RULES
Issue: Intellectual Property
GeoCities members who made personal Web sites with the company before it was
bought out by Yahoo in January, are angry about a new policy presented to them
this week by Yahoo. In order for them to update their Web sites, they have to
re-register and agree to Yahoo's new terms of service. GeoCitiers members,
however, claim Yahoo wants to gets full ownership of their content as it
loosely stated in its original statements calling for re-registration. Yahoo
says they need to get members re-registered in order to make access to the
pages quicker and more reliable and to select content and promote it. It says
it understands members' concern: "People have intellectual property on their
sites, and they think our intention is to take that and use it for some other
purpose rather than serving up Web pages and selling advertising." Members have
protested and encouraged others to re-post their Web sites on other home page
providers that have less restrictive terms. Yahoo says it did not mean to upset
its Web site publishers and that it has little intention of displeasing,
essentially, its source of revenue and has taken further steps to amend its
original statement. In the meanwhile, other free home page service providers
have been making clarifications on their Web sites, making it "crystal clear"
that content on personal home pages is not theirs.
[SOURCE: New York Times (CyberTimes), AUTHOR: Lisa Napoli]
(http://www.nytimes.com/library/tech/99/07/cyber/articles/01yahoo.html)
See also:
YAHOO: YOUR HOMESTEAD'S YOUR OWN
[SOURCE: Wired, AUTHOR: Declan McCullagh]
(http://www.wired.com/news/news/politics/story/20518.html)

CHAIN OF FOOLERY ON THE INTERNET
Issue: Internet
As the Internet grows, so does the spread of Internet hoaxes. Widely propagated
myths range from stories about Miller Brewing Company celebrating the
millennium by giving away free six-packs of beer to two million computer users,
to threats of the federal government charging for each email message sent.
While many hoaxes may appear harmless, the results of false emails and Web
postings have included interference with the stock market and the slander of
innocent individuals. These types of messages also are responsible for causing
unnecessary network traffic. One problem is that it has become increasingly
difficult to differentiate truth from make-believe on the Internet. "If you
really want to believe in the chain letter, you should be able to click through
to some U.R.L. and be able to verify it through some independent source," said
Rob Rosenberger, who runs the Web site www.kumite.com, which dispels myths
about
computer viruses. "But I can easily concoct a Web site that would 'validate' a
chain letter." The Department of Energy has also developed a Web site to help
people detect Web hoaxes (http://ciac.llnl.gov/ ).
[SOURCE: New York Times (E1), AUTHOR: Tina Kelley]
(http://www.nytimes.com/library/tech/99/07/circuits/articles/01hoax.html)

NEW HARDSELL ON THE INTERNET: BUy OUR SERVICE. GET A FREE PC
Issue: Access
Two major Internet service provider, America Online and Prodigy, have just
announced plans to offer feer computers to customers who sign up for Internet
access. AOL has joined with eMachines to provide $400 rebates on selected
eMachine computers, including one that sells for $399. To qualify for the
rebate, customers must sign up for three years of Internet service from AOL's
CompuServe unit, which totals $790.20 for the term of the agreement. Despite
the initial cost, CompuServe's general manager Audrey Weil says that a
"guaranteed three-year customer is a terrific deal for us." Many Internet
providers are eager to tap into the next wave of Internet user: the half of
American households that do not yet have a computer. "AOL and e Machines are
going after these fist time users," said David Stremba of the Dataquest
research firm, "but they're very difficult to acquire."
[SOURCE: Wall Street Journal (B1), AUTHOR: Thomas E. Weber]
(http://wsj.com/)

MERGERS

F.C.C.'S GIVE AND TAKE IN SBC-AMERITECH MERGER DEAL
Issue: Merger
SBC has agreeing to take some of the most radical steps a phone company has
ever taken to gain regulatory approval for a takeover from the Federal
Communications Commission. One of the proposed conditions for SBC's acquisition
of Ameritech is that it will compete in 30 new markets within 30 months. In
total, the agreement will include 28 conditions that the combined SBC/
Ameritech must meet, or face cash penalties of as much as $2.3 billion. A joint
SBC/Ameritech, which would control about a third of the nation's local
telephone lines, has been presented with the most extensive conditions yet
applied to a communications merger. How will consumers benefit from the
conditions? That may be the fuzziest part of this deal.
While the FCC plan would force SBC to create competition to the other local
phone giants, it also gives the company a lot of potential latitude to "cherry
pick" the most lucrative segments of the market.

SMALL, LOCAL TELEPHONE COMPANIES PREPARE FOR WINDFALL FROM SBC AMERITECH MERGER
Issue: Merger
One of the proposed conditions set forth by Federal Communications Commissioner
Chairman William Kennard for the proposed SBC-Ameritech deal is that they must
enter 30 new markets within 30 months of the deal's closing. This may breathe
new life into local telephone businesses as SBC-Ameritech could partner with
such companies as Nextlink Communications -- a Washington carrier that serves
the northwest, Intermedia Communications -- a Tampa, FL competitor which serves
the southeast and Hyperion Telecommunications -- a Pennsylvania company serving
the east coast to enter those new markets. Most local telephone competitors now
serve businesses more than residents, as the transfer of telephone lines from a
Bell requires a complex set of manual and computerized steps. The Ameritech/SBC
merger could help these companies get into new markets because the proposed
conditions would force them to open their networks with discounts for their
system use.
[SOURCE: Wall Street Journal (C2), [AUTHOR: Stephanie N. Mehta]
(http://wsj.com/)

PRESS STATEMENT OF COMMISSIONERS REGARDING THE PROPOSED SBC-AMERITECH
CONDITIONS
Issue: Merger
Federal Communications Commissioners Gloria Tristani and Harold Furchtgott-Roth
released a statement that they "were surprised and disturbed by press
characterizations of the proposed conditions to the proposed SBC-Ameritech
merger." "Contrary to the suggestion of some press accounts, neither we nor the
full Commission has indicated even tentative approval of the SBC-Ameritech
transaction or conditions. Indeed, to do so before the record has even closed
would be improper", they stated. They also said all the negotiations have
proceeded without the other four commissioners and that they will review the
proposals in full to determine if the deal is in the public interest. At this
point in time, they pointed out, the discussions are between Chairman William
Kennard, SBC and Ameritech.
(http://www.fcc.gov/Speeches/Tristani/Statements/stgt919.html)
Commissioner Furchgott-Roth issues a separate statement saying, "A year ago,
SBC and Ameritech applied for a license transfer stipulating that it was in the
public interest. Today, SBC and Ameritech appear to have changed their minds,
and agree that their license transfer would only be in the public interest with
conditions negotiated in secret with the Commission. Do SBC and Ameritech now
concede that the proposed license transfer of a year ago was not in the public
interest? I am left wondering which if any license transfers are in the public
interest."
[SOURCE: Federal Communications Commission]
(http://www.fcc.gov/Speeches/Furchtgott_Roth/Statements/sthfr926.html)

CHARTER BUYS YET ANOTHER CABLE SYSTEM
Issue: Merger
Charter Communications has invested billions of dollars over the last year for
cable properties and assumed several billion in debt to become the fourth
largest cable operator in the U.S. They recently agreed to buy Bresnan
Communications, which has systems in Michigan, Minnesota, Wisconsin and
Nebraska. They assumed $1 billion of debt for the deal. Paul Allen, the owner
of Charter, is considering and initial public offering to offset the debt, as
he would like to offer advanced digital services to compete with other cable
companies. The four largest cable operators are AT&T, Times Warner, Comcast and
Charter respectively.
[SOURCE: Wall Street Journal (B10), AUTHOR: Martin Peers]
(http://wsj.com/)

FCC

FCC SET TO JOIN UNDERSEA CABLE PROBE, INCREASING ODDS FOR CHANGES IN INDUSTRY
Issue: Antitrust
Although the Federal Communications Commission is still planning to grant a
license to a consortium of more than 30 companies for building an undersea
cable between the U.S. and Japan, they will join the Justice Department in
their investigation of that same consortium for antitrust practices. The
Justice Department announced yesterday that they are investigating the same
license the FCC wants to approve for the U.S./Japan cable because complaints
have been made by Global Crossing regarding monopolization of the undersea
lines. The FCC's investigation will be broader, examining the building and
operation of the lines. If they find it to be anti-competitive, the FCC could
write rules or impose conditions on the consortium. FCC Chairman William
Kennard does not want to hold up the license for the U.S./Japan undersea cable
as he sees this capacity as vital to telecommunications companies. Analysts say
the investigation is good for consumers, as it will likely drive the price of
bandwidth down.
[SOURCE: Wall Street Journal (A3), [AUTHOR: Bryan Gruley]
(http://wsj.com/)

FCC RELEASES CONSENT DECREE
Issue: Regulatory
Today, the Federal Communications Commission announced termination of an
informal six month investigation into potential violations by SBC
Communications. The investigation concerned issues surrounding the
SBC/Southern New England Telecommunications merger. SBC was accused of offering
long distance services, which is against FCC regulations under the
Telecommunication Act of 1996. Bell companies cannot offer long distance
service until certain conditions have been met. SBC did not admit any
wrongdoing in this proceeding but will pay the U.S. Treasury $1.3 million. SBC
also agreed to make several important changes regarding its internal operations
to ensure compliance with statutory and regulatory provisions.
[SOURCE: Federal Communications Commission]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9040.htm)

BROADBAND

AT&T ATONES FOR ( at )HOME GLITCH
Issue: Broadband
Some customers of At Home's cable broadband service have had so much difficulty
with their connections that the company has offered them an apology in the form
of six months of free Internet access. At Home customers in six San Francisco
area cities have experienced sharp drops in speed and occasional outages in
their Internet access. Although not all 1,000 customers in those cities have
had problems, all will receive rebates for the past two months and free service
through September, costing AT&T nearly $200,000. The company is investigating
the cause of the troubles.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/athome070199.htm)

WIRELESS

DATA BASICS: FOR CELL CALLS, D.C. AREA IS AMONG THE PRICIEST
Issue: Wireless
Out of 14 U.S. cities surveyed, Washington D.C. ranks as the third most
expensive place to pay to use a cellular phone, after Los Angeles and San
Diego, CA. Econ One Research calculated the average cost to buy cell-phone
time, based on the companies' plans for 30, 150 and 300 minutes per month. They
said prices may vary because the cost of building and operating a cellular
system varies from city-to-city. Topography, the cost of renting towers and
consumer demand for the services could have an affect on the final price. The
cities ranked as follows: 1)Los Angeles, 2)San Diego, 3)Washington, D.C.,
4)Dallas, 5) San Francisco, 6)Detroi, 7)Philadelphia, 8)Sacramento, 9)Houston,
10)Boston, 11)Chicago, 12)New York, 13)Miami, 14)Atlanta.
[SOURCE: Washington Post, AUTHOR: Washington Post Staff]
(http://washingtonpost.com/wp-srv/WPlate/1999-07/01/172l-070199-idx.html)

--------------------------------------------------------------