July 1997

Universal Service
Telecom AM: Senators Urge Colleagues to Say No to Budget Gimmick
Telecom AM: Arkansas Asks FCC for School Discount Waiver, Citing
Lack of Authority
Telecom AM: Virginia Seeks Comment on Updating Nonpayment
Disconnection Policies

Content Regulations
NYT: The Ratings: Too Much for Parents or Not Enough?
WP: CompuServ Restricting Access To Content Aimed at Adults
FCC: "WILL THE FCC EVER BE CONTENT WITH CONTENT?"
*********************************************
* Universal Service *
*********************************************
Title: Senators Urge Colleagues to Say No to Budget Gimmick
Source: Telecom AM http://www.telecommunications.com/omaha/am/article/970730.5
Issue: Universal Service
Description: Sixteen senators -- including John McCain (R-AZ), Conrad Burns
(R-MT), Byron Dorgan (D-ND), and Ernest Hollings (D-SC) -- sent a letter to
their colleagues urging them to reject a proposal to use Universal Service
Funds to balance the budget. "This unprecedented raid on universal service
could not only drive local phone rates up but it will also renege on the
commitment made under the Telecommunications Act to provide schools,
libraries, and rural health facilities with discounted services," the
senators wrote. "This gimmick is the plug designed to fill the gap for
shortfalls in the revenue projections from other provisions in the
reconciliation bill. What is really outrageous about this is that universal
service revenues never touch the federal treasury, yet this support system
would be used to reach a balanced budget through an interest-free loan to
the federal government."

Title: Arkansas Asks FCC for School Discount Waiver, Citing Lack of Authority
Source: Telecom AM
http://www.telecommunications.com/omaha/am/article/970730.10
Issue: Universal service
Description: Arkansas has joined North Dakota in asking the Federal
Communications Commission for a waiver of the requirement that the state
establish "universal service discount rates for intrastate telecom services
provided to schools and libraries this year." The Arkansas Public Service
Commission says it lacks authority to set rates of local service providers.
APSC believes the Arkansas legislature could remedy this, but it will not
meet again until January 1999.

Title: Virginia Seeks Comment on Updating Nonpayment Disconnection Policies
Source: Telecom AM http://www.telecommunications.com/omaha/am/article/970730.8
Issue: Universal Service
Description: The Virginia Corporation Commission will review its 10 year-old
policies on disconnection of local service due to nonpayment of toll
charges. Comments are due September 5 in Case PUC-970113 on "whether current
policies need to be expanded to include disconnections by competitive local
exchange providers, and the short-haul toll services provided by each local
provider."

*********************************************
* Content Regulations *
*********************************************
Title: The Ratings: Too Much for Parents or Not Enough?
Source: New York Times
http://www.nytimes.com/yr/mo/day/news/arts/tv-kids-ratings.html(B8)
Author: Walter Goodman
Issue: V-Chip
Description: The commotion over the new TV ratings is whether they ask too
much or too little for parents. Children who have attentive parents may
benefit, but will there be benefits for children of parents who are absent,
too busy or simply don't care? Its hard to argue will giving people more
information, but there's no telling how they will use it.

Title: CompuServ Restricting Access To Content Aimed at Adults
Source: Washington Post
http://www.washingtonpost.com/wp-srv/WPlate/1997-07/30/038l-073097-idx.html
(D9)
Author: Associated Press
Issue: Online Services
Description: CompuServ -- with 5.4 million subscribers worldwide -- will
password protect adult-themed content in a new Adult Community section
starting next week. The content protected will only be CompuServ content,
not that found on the Internet.

At the FCC http://www.fcc.gov
"WILL THE FCC EVER BE CONTENT WITH CONTENT?"
Commissioner Chong Issues Call to Action to California Broadcasters
http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1997/nrmc7054.html
Speaking to the California Broadcasters Association in Monterey, California,
on July 28, FCC Commissioner Rachelle Chong issued a "call to action to end
the trend of increased government intrusion" into broadcast program content.
Chong cited examples of continuing attempts to impose greater government
control over television content including quantitative guidelines for
children's educational television, calls for free advertising time for
political candidates, TV content ratings and proposed government mandates
for counter-advertising and public service announcements. She urged
broadcasters to "begin speaking out strongly and firmly about why the First
Amendment must be protected for our democracy to stand."
*********
Thanks for the survey replies -- please keep them coming!!

Broadcasters Get Extra Time for TV Changeover

Likely Pick for FCC Could Help Consumers

Internet/Online Services
NYT: Web Advertising Beyond Banners
NYT: Trying to make computer channel surfing as attractive as the
couch potato variety
WSJ: Disney Blitzes Cyberspace With 'Daily Blast' Service
WP: Advice for Removing Spam's Stain From the Screen

International
NYT: "Euroskeptics" Offer a Lesson On the Web as Political Arena
NYT: At Palestinian Papers, Money Is as Elusive As Freedom
NYT: Basque Web Site Suspended After Protests

In the Murdoch-Levin dispute, money talked

Sprint Gets Ambitious On Welfare Reform With Mixed Results

Hip and Irreverent, Alternative Papers Grab Readers

Let the People See Justice be Done
*********************************************
Title: Broadcasters Get Extra Time for TV Changeover
Source: New York Times
http://www.nytimes.com/yr/mo/day/news/financial/digital-tv-media.html(D5)
Author: Deborah Shapley
Issue: Digital TV/Spectrum
Description: Budget Conference Committee members have agreed on provisions
that may delay the transition to digital television. The Federal
Communications Commission set 2006 as the date broadcasters would have to
return spectrum currently used to air television. All broadcasts after that
date would be in the new digital format. But House and Senate budget
conferees have agreed on language that sets up a three-tiered test for the
return of spectrum. Broadcasters may keep both their analog and digital
licenses if 1) 15% of all households in the market they serve lack access to
digital signals; 2) less than 85% of households have cable, digital TV sets,
or digital converter boxes; or 3) if one of the four major networks is not
broadcasting digital signals in the area. The Clinton Administration and
Senator John McCain have opposed changing the FCC's rules.

Title: Likely Pick for FCC Could Help Consumers
Source: Wall Street Journal http://www.wsj.com/ (B1)
Author: John R. Wilke
Issue: Federal Communications Commission/Policymakers
Description: William Kennard, President Clinton's pick to head the FCC,
will face a tough confirmation process, but once confirmed will do well
because of his consensus-building style of leadership. Kennard would be the
first African-American to be Chairman of the FCC. Kennard would be expected
to promote pro-consumer policies in terms of cutting cable rates and keeping
Baby Bells out of the long distance markets until they fully open their
local markets. Kennard is also concerned about the lack of diversity in
media ownership.

Title: Web Advertising Beyond Banners
Source: New York Times
http://www.nytimes.com/library/cyber/week/072897advertising.html(D5)
Author: Nzong Xiong
Issue: Advertising
Description: Last year, advertisers, particularly technology and financial
services companies, spent $301 million on ads on the Internet. In the first
quarter on 1997 alone, $133 was spent. Advertisers want more bang for their
many bucks and are looking for new ways to advertise including: pop-up
windows, roadblocks, tickers, and incentives. [see http://www.swoon.com,
http://www.riddler.com, http://www.hotbands.net/musicstore]

Title: Trying to make computer channel surfing as attractive as the couch
potato(e) variety
Source: New York Times
http://www.nytimes.com/library/cyber/techcol/072897techcol.html(D5)
Author: Regina Joseph
Issue: Old vs New Media
Description: Seventy-one years after John Logie Baird invented the
television, we've moved from the one-sized, fits-all BBC, one-station model
to the fragmented cable model to, most recently, the interactive channel
with a companion Web site. And Internet service providers are moving toward
the "channel" concept as well. "it's simply the easiest way consumers can
find info."

Title: Disney Blitzes Cyberspace With 'Daily Blast' Service
Source: Wall Street Journal http://www.wsj.com/ (B4)
Author: Bruce Orwall
Issue: Online Services/Internet Content
Description: Disney has launched a Internet service for children 12 and
under called the 'Daily Blast' featuring different games, comics, and news
and sports information every day. "It's part of a recent blitz by Disney to
establish Internet beachheads for many of its products, from ESPN to ABC
News." The Daily Blast costs $4.95 a month and this doesn't include
Internet access. Disney hopes that the service becomes a ritual for kids.
Analysts question whether enough families will support the Daily Blast when
other kids' sites are free.

Title: Advice for Removing Spam's Stain From the Screen
Source: Washington Post
http://www.washingtonpost.com/wp-srv/WPlate/1997-07/28/032l-072897-idx.html
(WashBus 19)
Author: Victoria Shannon
Issue: E-mail/Privacy
Description: This article looks into different strategies that one can
use to avoid the greasy spiced ham that somehow always finds a way into
one's "inbox." AOL users have different keywords they can type
("marketing prefs" and "postmaster") to help guard their e-mail
accounts. Several groups would like to put the responsibility on
Internet service providers to filter out spam, but no feasible way of
doing this has been realized. Many believe that legislation will be the
answer, but for those who don't want to wait the 2 and a half
years...check out the Coalition Against Unsolicited E-Mail
http://www.cauce.org and the Stop Junk E-mail site at
http://www.mcs.com/~jcr/junkemail.html.

Title: "Euroskeptics" Offer a Lesson On the Web as Political Arena
Source: New York Times
http://www.nytimes.com/library/cyber/sites/072897sites.html(D1)
Author: Edmund Andrews
Issue: Old vs New Media
Description: "The media speaks the words of the Government, and the says we
want to be involved with the euro," says Martin Dessing president of Dutch
political group Boycot de Euro. "I think we've started a new discussion, and
that's why we've started to use the Internet." Television and newspapers had
all but ignored people skeptical of the European currency, but these
dissenters "have created a textbook example of how political groups outside
the mainstream can use the Web as a political tool." Activity on the Web
shows that there is more opposition to the Euro than political leaders care
to admit. See http://www.znet.se/centernej/e31.html and
http://www.kc3ltd.co.uk/profile/eurofile.

Title: At Palestinian Papers, Money Is as Elusive As Freedom
Source: New York Times
http://www.nytimes.com/yr/mo/day/news/financial/westbank-papers-media.html(D1)
Author: Judith Miller
Issue: International/Newspapers
Description: Palestinian newspapers face pressures of censorship, high
production costs, and too few readers and advertisers.

Title: Basque Web Site Suspended After Protests
Source: New York Times
http://www.nytimes.com/library/cyber/week/072897basque.html(D3)
Author: John Cushman
Issue: International/Internet
Description: The Institute for Global Communications http://www.igc.org,
an Internet service provider that specializes in working with human rights
groups, became the target of computerized protests that forced it to shut
down a Web site that provided a sympathetic account of the Basque separatist
movement. A spokesman called the episode "the electronic equivalent of
taking hostages" as IGC was unable to provide regular e-mail service to its
13,000 subscribers. IGC posted a message about the shutdown saying, "While
the site is suspended, we call on all those concerned that legal political
speech can be forcibly censored by mail-bombing attacks to protest the
tactics used against us. If it can happen to us, it can happen to anyone."

Title: In the Murdoch-Levin dispute, money talked
Source: New York Times
http://www.nytimes.com/yr/mo/day/news/financial/timewarner-newscorp-media.h
tml(D7)
Author: Lawrie Mifflin
Issue: Ownership
Description: In Media column, Mifflin examines the Time Warner cable system
vs. News Corp Fox News channel war. Why did Time Warner finally give in to
Fox when TW appeared to be winning on every front? There are a number of
theories: 1) Time Warner head Gerald Levin and News Corp's Rupert Murdoch
simply kissed and made up, 2) Time Warner won concessions on other future
deals, 3) News Corp offered a lot of cash, and/or 4) it was just time to
stop fighting and get back to work.

Title: Sprint Gets Ambitious On Welfare Reform With Mixed Results
Source: Wall Street Journal http://www.wsj.com/ (A1)
Author: Dennis Farney
Issue: Jobs/Low-Income
Description: In his State of the Union address, President Clinton
mentioned Sprint as one of the corporations who would be involved in
training welfare recipients for jobs. Sprint had already started training
programs, but didn't know it would be mentioned by Clinton as a leader. So far
the company has only hired seven people as a result of its welfare-to-work
efforts. AT&T has hired one person from the training classes. Sprint and
other companies are learning as they go about how to train workers and how
much they can promise those people enrolled in classes. The companies'
learning curve, however, can be frustrating for trainees that don't make the
final cuts for jobs.

Title: Hip and Irreverent, Alternative Papers Grab Readers
Source: Wall Street Journal http://www.wsj.com/ (B1)
Author: James P. Miller
Issue: Journalism
Description: Daily newspapers have dropping circulation, but alternative
papers have a growing number of readers. "Since 1990, circulation and
revenue have more than doubled among the nation's more than 100 alternatives,
according to a trade group." Advertisers are using alternative papers to
reach the 20-somethings crowd.

Title: Let the People See Justice be Done
Source: Washington Post
http://search.washingtonpost.com/wp-srv/WPlate/1997-07/28/010l-072897-idx.h
tml (A19)
Author: Fred Graham, Court TV
Issue: Journalism
Description: This op-ed, written by the chief anchor and managing editor
of Court TV, attacks the judicial trend of barring television cameras
from the courtroom in "high profile" cases. According to Graham, the
states that allow cameras in the courtroom all conducted studies to
judge the potential effect of the cameras on judges, attorneys, etc.,
and that these studies should not be ignored simply because a case is
"high profile." Graham believes that the public interest is better
served because the higher the profile of a case, the more vital it
is that the public be informed. And the better the ratings are for his
show.
*********

True Crime, All Too True, on TV

English Not Taught Here

Soon AOL Users Will Get Junk Calls, Not Just Busy Signals and E-Mail Ads

And About The Kiddie Session

AOL Will Share Users' Numbers For Telemarketing

Budget Ax Poised Over Phone Subsidy for Rural Areas

8th Circuit Court Ruling May Foster Closer Federal-State Accord

Changes to the Board of Directors of the National Exchange Carrier
Association and the
Federal-State Joint Board on Universal Services

Statements by Chairman Hundt, Commissioner Quello, and Commissioner Ness on
the Proposed Bell
Atlantic/NYNEX Merger Conditions

**Thanks for those survey responses. Please keep them coming! And, to clear
up a burning question for a couple of readers: Yes, Susan is real.**
*********************************************
Title: True Crime, All Too True, on TV
Source: New York Times http://www.nytimes.com/(B1)
Author: Sarah Koenig
Issue: International/TV Content
Description: "A contract killing here is no longer an event, it's a given,
like snow falling," says a Russian editor. Russians are obsessed with rising
crime and are watching it on TV. Reality television is showing accidents,
holdups, drug busts and murders.

Title: English Not Taught Here
Source: Wall Street Journal http://www.wsj.com/(A18)
Author: Hal Netkin
Issue: Language/Education/Culture
Description: A grass-roots campaign in California is circulating a petition
that would allow California voters to curtail bilingual education in public
schools. Some 25% of California students are in bilingual classes, but less
than 10% of them become proficient in English. The author suggests that
bilingual classes be rightly called "primary language" classes because,
mainly, they teach native Spanish speakers in Spanish instead of English.

Title: Soon AOL Users Will Get Junk Calls, Not Just Busy Signals and E-Mail Ads
Source: Wall Street Journal http://www.wsj.com/(B6)
Author: Rebecca Quick
Issue: Internet Services/Privacy
Description: America Online will soon begin giving its 8.5 customers numbers
to aggressive telemarketers. AOL is calling this a new "member benefit."
[And that's NOT a joke.]

Title: And About The Kiddie Session
Source: Washington Post http://www.washingtonpost.com/ (B6)
Author: John Carmody
Issue: V-Chip
Description: At ABC's children's television session for visiting
reporters, Geraldine Laybourne, president of Disney/ABC Cable networks,
commented on the new TV ratings system. Laybourne, who put the
Nickelodeon channel on the map, said that she is skeptical about the new
system, and that, in her experience, "parents do not get involved with
their kid's television...parents don't spend 15 minutes with the TV
Guide in the week to try and balance [their children's viewing] menu."
She went on to say that she fears that the ratings system will "lead to
some kind of constraints on creative freedom and great content.

Title: AOL Will Share Users' Numbers For Telemarketing
Source: Washington Post http://www.washingtonpost.com/ (E1)
Author: Rajiv Chandrasekaran
Issue: Internet Economics
Description: America Online will make its member's phone numbers
available to certain business partners. Under the company's revised
user rules, "consumer-services" firms like CUC International, Inc. will
be able to telemarket all AOL users who have failed to restrict access
to their phone numbers. These rules are effective July 31. The sale of
information about customers is a fairly common practice, the sale of
phone numbers is relatively rare. Although AOL execs contend that they
plan to screen the telemarketer's solicitations, many see this as a huge
mistake for AOL, who only recently regained the confidence of many
customers driven away last winter and spring by the busy signals that
occurred when AOL underestimated customer demand for a flat-rate pricing
plan.

Title: Budget Ax Poised Over Phone Subsidy for Rural Areas
Source: Los Angeles Times
http://www.latimes.com/HOME/NEWS/BUSINESS/t000065667.html(D3)
Author: Jube Shiver, Jr.
Issue: Universal Service
Description: In an unusual move, Budget Conference Committee members are
suggesting diverting billions of dollars in phone system subsidies to make
up for a budget shortfall in 2002. The shortfall would come about because of
the decreasing prices in spectrum auctions. The government would not provide
phone subsidies to rural and low-income consumers, schools, libraries and
rural health care providers in 2002 to close the gap. "The potential impact
of this is tremendous," said Benton's Andrew Blau. "A real worse-case
scenario suggests that by 2002 -- which is not that far away...rural
telecommunications users would be facing a situation where, overnight, their
rates could at least double."

Title: 8th Circuit Court Ruling May Foster Closer Federal-State Accord
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Competition
Description: The 8th US Circuit of Appeals ruling "actually improves
federal-state relations by making clear that both sides are essential to the
partnership," says Montana Public Service Commissioner Bob Rowe,
Communications Committee Chairman of the National Association of Regulatory
Utility Commissioners (NARUC). It will also mean more work for state
commissions to oversee interconnection agreements.

At the FCC http://www.fcc.gov
Changes to the Board of Directors of the National Exchange Carrier
Association and the
Federal-State Joint Board on Universal Services
http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1997/neca.html

Statements by Chairman Hundt, Commissioner Quello, and Commissioner Ness on
the Proposed Bell
Atlantic/NYNEX Merger Conditions
*********

Crusading TV Station Is the City's Daytime Drama

Time Warner's New York Blackout

Microsoft Takes a Stake in Progressive Networks

Microsoft Is Gaining Ally for Developing Internet Technology

News Corp. in Talks With Time Warner To Place Fox News on New York Cable

Internet Use Is Restricted In Loudoun

8th Circuit Court Ruling Blow For U.S. Long-distance Carriers

8th Circuit Court's Ruling Goes way Beyond Severing FCC's Pricing Rules

Senator McCain Plans to take a Second Look at Telecom Act

U.S. Telecom Reform Moves At Snail's Pace

Senate Approves Klein's Nomination to Head DOJ Antitrust Division

Bell Atlantic, Nynex Concede To FCC Requests In Exchange For Merger OK

Companies Should Self-Regulate Internet Business, Says MCI

Budget process unsettled for broadcasters

Taking a Reed on a Wallman FCC

"Clean money" alternatives offered

All ratings roads lead to the FCC

America's Town Crier

Statements on Court's Decision on Telephone Interconnection

DISCO II [NOT a BeeGees Story]
*********************************************
Title: Crusading TV Station Is the City's Daytime Drama
Source: New York Times http://www.nytimes.com/(A4)
Author: Calvin Sims
Issue: International/TV
Description: After airing investigative reports of misuse of power within
the Peruvian government, Frecuencia Latina TV is preparing to be raided by
the military. Already, the station's owner, Baruch Ivcher, has been stripped
of his citizenship.

Title: Time Warner's New York Blackout
Source: New York Times http://www.nytimes.com/(A22)
Author: NYTimes Editorial Staff
Issue: Ownership/Media Mergers
Description: Time Warner's decision not to carry the Fox News Cable station
means that New Yorkers aren't seeing live coverage of the Senate hearings on
campaign finance abuses. Due to bad ratings, CNN and MSNBC are not showing
the hearings. C-SPAN is showing the hearings on tape delay. "If Time Warner
wants to be respected as a company grounded in journalism, it cannot leave
the nation's largest television audience in the dark on a matter as critical
as the Senate hearings." [The editorial does not mention that the only way
for *all* New Yorkers to see the hearings is to air them on a free,
broadcast station.]

Title: Microsoft Takes a Stake in Progressive Networks
Source: New York Times http://www.nytimes.com/(D6)
Author: John Markoff
Issue: Mergers
Description: In hopes of developing a future digital television technical
standard more compatible with computers, Microsoft has made a minority
investment in Progressive Networks -- developer of Real Audio and Real
Video. Progressive Networks was created by ex-Microsoft employee Rob Glaser.

Title: Microsoft Is Gaining Ally for Developing Internet Technology
Source: Wall Street Journal http://www.wsj.com/ (B5)
Author: WSJ Staff Writer
Issue: Mergers
Description: Microsoft will acquire a 10% nonvoting stake in Progressive
Networks. Competition had been heating up between the two companies with
Microsoft's development of audio and video Net tools under the name NetShow.

Title: News Corp. in Talks With Time Warner To Place Fox News on New York
Cable
Source: Wall Street Journal http://www.wsj.com/(B6)
Author: Eben Shapiro & Mark Robichaux
Issue: Ownership/Mergers
Description: In a three-way deal to solve the Fox News/Time Warner cable
fiasco, the City of New York will get Rupert Murdoch as mayor, Ted Turner
will head News Corp and Rudolph Giuliani will become a Time Warner Vice
Chairman. Each man had worn out his welcome at his organization. **Or** Fox
News will get a slot on Time Warner freed up by the City which will give
away one of its public access stations. News Corp. will drop an a federal
antitrust suit against Time Warner and Time Warner will drop another suit
against the City. All will be happy -- until Greg Maddux realizes he's
pitching for someone with a Yankee cap on.

Title: Internet Use Is Restricted In Loudoun
Source: Washington Post http://www.washingtonpost.com/ (E1)
Author: Peter Pae and Todd Beamon
Issue: Libraries/First Amendment
Description: Last night, the Loudon County (VA) Library Board voted 6-2
in favor of blocking full Internet access by their patrons. The adopted
policy states that adult patrons must ask librarians to turn off
filtering software if they would like full access, and that children
under 17 yrs. old must have a parent with them if they want full access
to the Web. Many praised the decision as a "common sense" way to
protect children, while others, including the Library Director, decried
the filtering policy saying that parents "should have the right to
decide what is appropriate for their children." According to Judith
Krug, Director of the American Library Association (http://www.ala.org), the
move is "unusual in that the majority of libraries are backing off" from
using content filters. The ALA advocates parental restriction of their
children's access over the use of screening software.

Title: 8th Circuit Court Ruling Blow For U.S. Long-distance Carriers
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Competition
Description: The 8th U.S. Circuit Court of Appeals in St. Louis made a
ruling last week which declared that the FCC had stepped into the
jurisdiction of state regulators in trying to influence the prices
charged by local phone companies for access to their networks by
potential competitors. FCC Chairman Reed Hunt said that "This is a huge
setback for competition [and] a tremendous shot in the arm for the
forces of incumbency and the status quo. But there is an antidote for
monopolies: the Supreme Court." Which is to say, the FCC will appeal
the ruling.

Title: 8th Circuit Court's Ruling Goes way Beyond Severing FCC's Pricing Rules
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Competition
Description: The 8th Circuit's ruling struck down the Federal Communications
Commission's jurisdiction over pricing of interstate charges and the "pick
and choose" provision which would have allowed potential competitors to pick
the parts of previous interconnection agreements with being responsible for
the negative terms of those agreements. The Court also said that the FCC
can't set rules for state commissions on rural exemptions, can't review
agreements approved by state commissions, nor preempt state policies that
conflict with FCC regulation. In summing up his opinion, Judge David Hansen
wrote, "While we do not pretend to possess the Rosetta stone that reveals
the true meaning of every portion of this Act, we hope that our review of
the FCC's First Report and Order in light of the Act's provisions offers
some guidance to the participants in the telecommunications industry as they
continue its evolution into the competitive marketplace Congress intended."

Title: Senator McCain Plans to take a Second Look at Telecom Act
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Telecommunications Act of 1996
Description: In a statement on the 8th U.S. Circuit of Appeals' July 21
ruling, Sen John McCain (R-AZ) said "I am very concerned that this serious
setback to the FCC's regulatory plan may mean that the Telecom Act will now
be even more ineffective in bringing about increased competition than it has
already shown itself to be." Sen McCain plans to hold hearings in September
to investigate how the Telecom Act can promote competition in light of the
ruling.

Title: U.S. Telecom Reform Moves At Snail's Pace
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Competition
Description: There's good news and bad news for advocates of open
competition in the telecommunications market. The good news is that the
FCC will allow Bell Atlantic to merge with Nynex because they agreed to
concessions that will force the companies to stimulate competition in
the market. As a result, their customers may eventually see telephone
rates drop. The bad news is, if you don't live on the East Coast
between New England and North Carolina, you don't have much to look
forward to after the Appeals Court decision to strike
down the FCC's ability to set pricing rules for interconnection charges on local
networks. For long-distance carriers to enter the local market they
will now have to battle for fair rates in each state they wish to
provide service in, or will have to make an incredible investment and
build their own network. The FCC has set up a task force to look into
the impediments to competition, but it seems like progress towards
competition will be made slowly, if it comes at all.

Title: Senate Approves Klein's Nomination to Head DOJ Antitrust Division
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Telephone Regulation
Description: Thursday, the Senate approved the nomination of Joel Klein
as head of the Department of Justice's Antitrust division. Senate
Democrats tried to keep Klein from the position because they questioned
his "ability to rule objectively on applications from telecommunications
companies to merge or enter interLATA long-distance." Attorney General
Janet Reno was pleased with the approval of Klein, calling him a
"champion" of American consumer and business interests.

Title: Bell Atlantic, Nynex Concede To FCC Requests In Exchange For
Merger OK
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Telecom Mergers
Description: According to FCC Chairman Reed Hundt, concessions made by
Bell Atlantic and Nynex under the condition that the FCC accept their
merger, "would bring enforceable, pro-competitive, market opening terms
to the whole Bell Atlantic/Nynex region in a way that offsets the loss
of Bell Atlantic as a potential competitor to Nynex." If Bell Atlantic
fails to meet all of the merger conditions, they will be fined by the
FCC, and could be slapped with additional penalties.

Title: Companies Should Self-Regulate Internet Business, Says MCI
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Internet Regulation
Description: MCI released a statement yesterday suggesting that Internet
service providers regulate themselves in order to keep the government
out of the Internet regulation business. The paper suggested that
allowing government regulation of the Internet would risk "distorting
healthy market forces," not to mention the fact that it would be a next
to impossible task for the government to regulate all Internet content.

Title: Budget process unsettled for broadcasters
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.10)
Author: Paige Albiniak
Issue: Spectrum/Budget Issues
Description: Broadcast lobbyists are concerned that gains they've made will
be lost when the Budget Committee conference meets next week. Current budget
language calls for the return of spectrum when 95% of households in a market
area "have access" to digital signals. Federal Communications Chairman Reed
Hundt wants that language to be clearer -- and make sure "access" means "the
burden is on the broadcasters to transmit the digital signal, not on the
consumer to receive it." Chairman Hundt points out that the 95% penetration
rate is unrealistic because "telephones have been available for 120 years,
and yet 6% of the population still does not have telephone."

Title: Taking a Reed on a Wallman FCC
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.14)
Author: Chris McConnell
Issue: FCC
Description: "Reed Hundt's policies minus Reed Hundt's arrogance." That's
what Washington lawyers, lobbyists, and regulators expect from a FCC headed
by Kathleen Wallman, White House economic adviser. "What you get is Gore,"
said one lobbyist. Wallman is Gore's first choice to succeed Hundt, but
Senate Democrats insist they will not back her nomination.

Title: "Clean money" alternatives offered
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.18)
Author: Paige Albiniak
Issue: Free Time for Candidates
Description: In a campaign fiance reform bill introduced by Rep John Tierney
(D-MA), candidates who ran "clean money" campaigns would receive 30 minutes
of free prime time broadcast during primary elections and 75 minutes during
the general election. Maine and Vermont already have similar laws.

Title: All ratings roads lead to the FCC
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.22)
Author: Chris McConnell
Issue: V-Chip
Description: Federal Communications Chairman Reed Hundt says the Commission
must still decide if the original and revised TV ratings systems are
"acceptable" as mandated by the Telecommunications Act of 1996. The FCC will
review the two systems as Hundt wants NBC to resubmit the system it will be
using.

Title: America's Town Crier
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.70)
Issue: Cable Content
Description: A cover story interview with C-SPAN's founder, Brian Lamb.
C-SPAN is now 18 years old and continues its mission to let "the American
people see the political system as it is, without comment or analysis."

At the FCC http://www.fcc.gov
Statements by Chairman Hundt, Commissioners Quello, Ness and Chong in
reaction to the 8th Circuit Court of Appeals Decision on Telephone
Interconnection

DISCO II Amendment of The Commission's Regulatory Policies to Allow
Non-U.S.-Licensed Space Stations to Provide Domestic and International
Satellite Service in the United States. Dkt No.: IB- 96-111, CC-93-23. (FCC
No. 97-252)
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