January 1998

Cable
NYT: Cable TV Lacks Competition, F.C.C. Notes
WP: Cable TV Firms Still Face Little Competition, F.C.C. Says
FCC: Fourth Annual Report on Competition in Video Markets
WSJ: Cable Operators Could Face Tough New Rules
Telecom AM: FCC Says Competition Not Developing Between Telcos, Cable
Comm Daily: Kennard Says Action On Cable Rate Regulation Is Needed
Before 1999 Sunset

Antitrust
NYT: U.S. and Microsoft Argue in Court Whether Judge Is Being Defied
WP: Judge Criticizes Key Arguments by Microsoft Lawyer

Television
NYT: Monday Football Stays on ABC; NBC Out of Game After 33 Years
WP: ABC Keeps Mondays In Record NFL Deals
Comm Daily: Mass Media
NYT: Study Finds a Decline In TV Network Violence
Comm Daily: Violence In TV Programs Continues Decline -- UCLA
Comm Daily: Kennard Suggests FCC 'Trust But Verify' Some Station
Filings

Jobs
WSJ: Netscape Expected to Cut 400 Workers As Growth Slows, Microsoft
Toughens

Telephone
Telecom AM: Legal Analysis Says Bells Can't Enter Long Distance
Immediately
Telecom AM: BellSouth Brings Constitutionality Case To Federal
Appeals Court
Comm Daily: St. Louis Appeals Court To Hear Access Charge Arguments,
2 Other
Cases
Comm Daily: Telephony

Privacy
WSJ: Don't Chat, Don't Tell? Navy Case Tests Privacy Limit

Politics
WSJ: Sticking Up For Free Speech

** Cable **

Title: Cable TV Lacks Competition, F.C.C. Notes
Source: New York Times (D6)
http://www.nytimes.com/yr/mo/day/news/financial/fcc-cable.html
Author: Seth Schiesel
Issue: Competition
Description: The Federal Communications Commission released a report
yesterday confirming that the information revolution has failed to create
substantial competition in the standard cable industry and as a result
consumers are paying higher rates. "Less than 15 months away from the sunset
of most cable rate regulation, it is clear that broad-based, widespread
competition to the cable industry has not developed and is not imminent,"
William Kennard, chairman of the FCC, said in a statement. "The loser is the
American public. They must pay higher cable prices yet have fewer
competitive choices." The report said that cable TV rates have increased by
8.5 percent over the past year, bringing the average monthly bill up to $28.83.

Title: Cable TV Firms Still Face Little Competition, F.C.C. Says
Source: Washington Post (D11)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/14/051l-011498-idx.html
Author: Paul Farhi
Issue: Competition
Description: According to a government study released yesterday, despite
federal regulation, cable TV companies still face little direct competition.
The Federal Communications Commission said that cable companies hold 87
percent of the market for subscription-based television services, down only
2 percent from last year. The rate of decline is about the same as when
Congress enacted the Telecommunications Act of 1996 in an effort to spur
competition. Meanwhile, cable rates have increased over the past year by 8.5
percent, compared with the general inflation rate of 1.7 percent. The report
led top federal regulators to renew calls for updated regulations.

Title: Fourth Annual Report on Competition in Video Markets
Source: FCC
http://www.fcc.gov/Bureaus/Cable/Reports/fcc97423.html
Issue: Cable/Competition
Description: The Commission has adopted its fourth annual report to Congress
on the status of competition in the markets for the delivery of video
programming. As of June 1997, cable operators served 87 percent of
households that receive multichannel video programming, down two percent
from September of 1996. While this represents a decrease, it shows the cable
industry continues to occupy the dominant position in the multichannel video
marketplace. It remains difficult to predict the extent to which competition
will constrain cable systems' position as the dominant multichannel video
provider in the future. [see news release
http://www.fcc.gov/Bureaus/Cable/News_Releases/1998/nrcb8001.html]

Title: Cable Operators Could Face Tough New Rules
Source: Wall Street Journal (A4)
http://wsj.com/
Author: Bryan Gruley
Issue: Competition
Description: Federal regulators warned that tough new rules may be in store
for cable companies that operate in markets where they have little or no
competition. Members of the FCC have stopped short of advocating a freeze on
cable rates. But the three Democrats among the five commissioners vowed to
look hard at writing rules that could force cable operators to offer more
programming choices, and to shift some of the burden for higher programming
costs to advertisers from subscribers. FCC Chairman Kennard said the FCC
will re-examine limits on the number of customers one cable company can serve.

Title: FCC Says Competition Not Developing Between Telcos, Cable
Source: Telecom AM---jan. 14, 1998
http://www.telecommunications.com/am/
Issue: Competition
Description: Although the Telecom Act loosened restriction on phone
companies' entering the cable business, such entry has been "uneven", the
FCC said. In its annual report, it said local carriers have provided
facilities-based competition in multiple dwelling units, but not in
neighboring areas. The expected convergence that would "permit use of the
same facilities for provision of the two types of service" has not occurred,
the Commission said. It said the one area in which cable operators "appear
poised to compete head-to-head" with telcos is providing Internet access.

Title: Kennard Says Action On Cable Rate Regulation Is Needed Before 1999
Sunset
Source: Communications Daily---jan. 14, 1998
Issue: Competition
Description: The latest FCC cable competition report is "red flare that the
competition that Congress envisioned is not imminent," FCC Chairman Kennard
told reporters. He stopped short of saying that the current March 31, 1999,
sunset for cable rate regulation should be extended, but said the FCC should
restudy its rate regulations, move quickly on horizontal ownership rules,
and urge Congress to ease limits on DBS.

** Antitrust **

Title: U.S. and Microsoft Argue in Court Whether Judge Is Being Defied
Source: New York Times (D1,D6)
http://www.nytimes.com/library/cyber/week/011498microsoft.html
Author: Stephen Labaton
Issue: Antitrust
Description: At yesterday's hearing, the Federal Government and Microsoft
clashed over whether Microsoft had failed to comply with the judge's order
to stop forcing makers of personal computers to install their Internet
browser as a condition of accepting its Windows 95 operating system. The
Justice Department claims that Microsoft flouted the judges order by
offering computer makers a set of three illogical options in order to insure
that the Internet Explorer icon remained on Windows desktops.

Title: Judge Criticizes Key Arguments by Microsoft Lawyer
Source: Washington Post (D1,D12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/14/049l-011498-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: A federal judge examining whether Microsoft violated a court
order sharply criticized key legal arguments raised by the software
corporations attorney, Richard Urowsky. U.S. District Judge Thomas Penfield
Jackson "repeatedly challenged Microsoft's focus on wording used by the
Justice Dept. in legal briefs asking that the company be held in contempt of
court." Jackson also repeatedly told Urowsky that the discussion should be
confined to the judge's order requiring the company to offer a version of
its Windows 95 operating system without an Internet browser. "Irrespective
of what the government said...it is my language, and my language alone,
which is at issue here," Jackson said. Later, when Urowsky complained that
the Justice Dept.'s current solution for separating Windows and the browser
differs from their statements in earlier legal papers, Jackson, paraphrasing
Ralph Waldo Emerson, replied, "It's been said that consistency is the
hobgoblin of little minds."

** Television **

Title: Monday Football Stays on ABC; NBC Out of Game After 33 Years
Source: New York Times (A1,D30)
http://www.nytimes.com/library/sports/football/011498fbn-nfl-tv.html
Author: Richard Sandomir
Issue: Television Economics
Description: The final word in the most expensive sports television
negotiations ever, is that ABC will keep "Monday Night Football" for $4.4
billion over eight years and ESPN secured exclusive NFL cable rights by
paying $4.8 billion for the entire Sunday night package. The financial
commitments by ABC and ESPN, both subsidiaries of the Walt Disney Company,
removed NBC from professional football after 33 seasons and ended an
eight-year arrangement under which ESPN shared Sunday night games with TNT.
The announcement came one day after CBS bought the American Conference games
and Fox kept its NFC rights. These agreements have brought the league's fees
over the next eight years to $17.6 billion, "which would rise to $18 billion
with 3 percent escalator clauses in the last three seasons." In the
four-year deals that ended this season the league received a total of $4.38
billion.

Title: ABC Keeps Mondays In Record NFL Deals
Source: Washington Post (A1,A10)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/14/193l-011498-idx.html
Author: Leonard Shapiro and Paul Farhi
Issue: Television Economics
Description: Last night, the National Football League announced an
eight-year $17.6 billion television deal with ABC, allowing the network to
retain the rights to "Monday Night Football," over a strong bid by NBC, and
that ESPN will now handle the entire package of Sunday night cable games,
eliminating Turner Broadcasting from the mix. Both ABC and ESPN are owned by
the Walt Disney Company. Due to this decision, this fall will mark the first
time in 28 years that NBC will not be airing NFL games.

Title: Mass Media
Source: Communications Daily
Issue: Television Economics
Description: CBS aced out NBC in the bid for the Sunday NFL package (AFC
games), to begin in 1998, by agreeing to pay $4 billion over the next 8
years. NBC rejected the NFL's offer to renew its contract at $500 million
per year, 2-1/2 times the current license fee. Fox will continue to carry
NFC games for $4.4 billion, up 39 percent from the current year. CBS last
broadcast the NFL in 1993, when Fox won the package.

Title: Study Finds a Decline In TV Network Violence
Source: New York Times (B7)
http://www.nytimes.com/yr/mo/day/news/arts/tv-violence.html
Author: Lawrie Mifflin
Issue: Television
Description: The third and final report of a study that began three years
ago in response to public anxiety about violence on television, has found a
steady decline in violent subject matter in all but one area. The report,
released yesterday, said the one area that has not shown a decrease is
"reality specials." These "shockumentaries" carry titles like "When Animals
Attack" and "World's Scariest Police Shootouts." But overall the study,
conducted by the Center for Communication Policy at the University of
California at Los Angeles, found that only two prime-time series in the
1996-97 season raised "frequent concerns" about the irresponsible or
excessive use of violence. The study was commissioned by ABC, CBS, NBC and
Fox in June 1994 after some prodding by Senator Paul Simon (D-IL).

Title: Violence In TV Programs Continues Decline -- UCLA
Source: Communications Daily---jan. 14, 1998
Issue: Television
Description: The 4 big TV networks received good grades in the latest study
of TV violence, as only 2 of 107 regularly scheduled series raised "frequent
concerns" about violence while 6 series raised "occasional concerns" in th
96-97 season. Jeffrey Cole, dir. of UCLA's Center for Communication Policy,
said, "Overall, the trend is toward less violence on network television."
UCLA studied more than 3,000 hours of programming, plus on-air promotions
and commercials. It differs from other violence studies in that it doesn't
simply count violent incidents but also analyzes the context of that
violence -- whether it's appropriate, shows consequences of violence and
necessary to tell the story or develop characters. Cole said, "Many
television dramas depict violence responsibly and effectively by
demonstrating consequences, developing characters and furthering plot lines."

Title: Kennard Suggests FCC 'Trust But Verify'' Some Station Filings
Source: Communications Daily---jan. 14, 1998
Issue: Television/Radio
Description: FCC Chairman Kennard suggested a move to a "trust but verify"
system for handling minor modifications to stations. He called the effort to
streamline processing "very near and dear to my heart" and said the biennial
review required by Congress means more can be done because of congressional
support. The FCC could operate more like the IRS, which allows taxpayers to
certify income and tax filings, with only spot checks to verify compliance,
Kennard suggested: "We don't necessarily have to check every application.
Why should our engineers check everything?" He said change could result in
"drastic improvement" in the application process.

** Jobs **

Title: Netscape Expected to Cut 400 Workers As Growth Slows, Microsoft Toughens
Source: Wall Street Journal (B4)
http://wsj.com/
Author: Kara Swisher
Issue: Jobs
Description: Netscape is expected to lay off about 400 permanent and
contract workers, as the fast-growing Internet-software company adjusts to
slowing growth and rising competition from Microsoft. The layoffs brings to
a halt a major expansion over the past several years and is the first time
that it has shrunk its staff. But because of an intense attack by Microsoft
in the Internet-software market, Netscape has seen substantial declines in
its market share for its well-known Navigator software.

** Telephone **

Title: Legal Analysis Says Bells Can't Enter Long Distance Immediately
Source: Telecom AM---jan. 14, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Even if the decision of a Wichita Falls, Texas, judge ruling
Sections 271-275 of the Telecom Act unconstitutional is upheld, the Bell
companies affected will not be able to offer in-region long distance service
without FCC approval. The law firm Wilkie, Farr & Gallagher said Section
251(g) maintains all existing restrictions on carriers -- such as those
imposed by the Modified Final Judgment on the Bell companies -- until the
Commission removes them.

Title: BellSouth Brings Constitutionality Case To Federal Appeals Court
Source: Telecom AM---jan. 13, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: BellSouth appealed the FCC's rejection of its bid to enter the
long distance market in South Carolina, rasing the Bell company argument
that the Telecom Act's rules for entry are unconstitutional to federal
appeals court. While its filing with the U.S. Court of Appeals was expected,
its argument was not. In using that argument, BellSouth became the fourth
Bell company to challenge the constitutionality of the long distance
sections of the Act.

Title: St. Louis Appeals Court To Hear Access Charge Arguments, 2 Other Cases
Source: Communications Daily---jan. 14, 1998
Issue: Telephone Regulation
Description: Eighth U.S. Appeals Court, St. Louis, will hold triple-header
oral arguments when it hears debate on 3 FCC actions: 1) Passage of access
charge reform order, 2) use of pricing standard in Sec. 271 proceedings, and
3) decision that shared transport should be considered network element.

Title: Telephony
Source: Communications Daily---jan. 14, 1998
Issue: Telephone Regulation
Description: In the wake of the New Year's Eve decision, BellSouth became
the first RHC to rely on Bill of Attainder argument in appealing an FCC Sec.
271 decision. The company asked the U.S. Appeals Court to quickly overturn
the FCC order barring BellSouth from offering long distance service in South
Carolina. BellSouth said the Commission decision was unconstitutional for 2
reasons: 1) It's based on language in Telecom Act's Secs. 271-273, which
Wichita Falls court found to represent unconstitutional "Bill of Attainder"
because it singles out Bell companies for punishment, 2) FCC decision itself
violates Constitution's equal protection component because it singles out
Bells by name in imposing restrictions.

** Privacy **

Title: Don't Chat, Don't Tell? Navy Case Tests Privacy Limits
Source: Wall Street Journal (B1)
http://wsj.com/
Author: John Simons
Issue: Privacy
Description: A senior petty officer is about to be discharged from his post
after more than 17 years in the service, following an unusual dispute with
AOL. The charge: homosexuality. The officer, Timothy R. McVeigh (no
relation), admits to using the word "gay" to describe his marital status in
an electronic profile that he created on AOL, but says that he never thought
his name would be linked to that on-line identity. Tomorrow, McVeigh will
receive an honorable discharge for violating the military's "don't ask,
don't tell" policy on homosexuality. Mr. McVeigh's case has become a "cause
celebre" for advocates pushing for tougher legislation to guarantee on-line
privacy. Advocates believe the case could be a powerful lobbying tool
because it marks a rare example of an alleged violation of electronic
privacy leading to tangible injury. AOL denies any wrongdoing and says it
has launched an internal investigation. Ann Brackbill, a spokeswoman for
AOL, said, "We're still looking into it, but we're pretty certain our
policies were followed."

** Politics **

Title: Sticking Up For Free Speech
Source: Wall Street Journal (Op-eds, A18)
http://wsj.com/
Issue: Campaign Finance Reform
Description: It is no surprise that coverage of campaign finance reform is
so one-sided; we have compared the fanatical support for such legislation
around the Beltway to the earnestness of the Hale-Bopp cult. Inconvenient
dissents from campaign finance theology -- most of them delivered by the
courts -- are given short thrift. The latest exhibit: U.S. District Chief
Judge Lawrence Karlton, who overturned California's new campaign
contribution limits as unconstitutional. But Judge Karlton made it clear
that "because campaign contributions translate into a candidate's speech,
and are protected as associational rights, they may not be restricted to a
degree unnecessary to achieve the governmental purpose." This reinforces the
link the Supreme Court has found time and again between the propagation of a
candidate's views and free speech. The judge identified that link when he
found that the contribution limits would "make it impossible for the
ordinary candidate to mount an effective campaign for office. However,
certain candidates -- namely those with vast independent wealth -- would
have faced no restrictions on getting their message out.
*********
Webcast of PIAC meeting Friday, January 16 at
http://www.real.com/corporate/digitaltv.

Telephony
TelecomAM: AT&T Adopts Quick-Entry Local Strategy In $11.3 Billion
Bid For Teleport
TelecomAM: The Spin Doctor Is In: BOCs React To AT&T-Teleport Merger
TelecomAM: Appeals Court Questions SBC Arguments for Entering Long
Distance in Okla.
NYT: From a Supplier of Gas Comes a Digital Pipeline

Television
WSJ: TCI Set-Top-Box Pacts Pit Microsoft Against Sun
NYT: TCI Seeks Variety in Software And Suppliers for TV Boxes
FCC: Biennial Review of Cable Services Bureau Rules
FCC: DTV in the Desert
WP: A Data Broadcasting Future?
WP: Europeans Stay Tuned To Teletext

Jobs
WP: U.S. to Train Workers for Tech Jobs
NTIA: Telecommunications Policy Internship Opportunities in 1998

Privacy
NYT: It Isn't Just Big Brother Who Is Watching
WP: It Isn't Just Big Brother Who Is Watching

Publishing
WSJ: Sale of Black Newspaper Chain Raises Thorny Issues
WSJ: Primedia to Acquire Magazine, Book Area of McClatchy Unit

** Telephony **

Title: AT&T Adopts Quick-Entry Local Strategy In $11.3 Billion Bid For Teleport
Source: Telecom AM---jan. 12, 1998
http://www.telecommunications.com/am/
Issue: Merger
Description: AT&T would gain immediate access to 66 local markets, obtain
considerable foundation for rapid expansion and enhance partnership with 3
big cable companies if it wins approval of an $11.3 billion acquisition of
Teleport Comm. Group. The all-stock deal was hailed by rating agencies and
Wall St. analysts, who are watching AT&T as new Chairman C. Michael
Armstrong establishes his regime. Explaining the deal to analysts, Armstrong
highlighted growth and competitive advantages: "I think the underlying
principle of this transaction is that AT&T is investing in growth."

Title: The Spin Doctor Is In: BOCs React To AT&T-Teleport Merger
Source: Telecom AM---jan. 12, 1998
http://www.telecommunications.com/am/
Issue: Merger
Description: The Jan. 8 AT&T/Teleport merger drew comment from the Bell
community, who sought to put their own spin on the event. Bell Atlantic said
AT&T's agreement to acquire Teleport "proves that local markets are open to
any competitor that wants to enter," despite AT&T's claims otherwise.
BellSouth cited the merger as evidence it, too, should be allowed to offer
long distance services. The company said, "As BellSouth commented in its
opposition to
the Worldcom/MCI merger, approval of such consolidation should be
conditioned on Bell company entry into the long distance market...BellSouth
will also file in opposition to AT&T's acquisition of Teleport for the same
reason."

Title: Appeals Court Questions SBC Arguments for Entering Long Distance in
Okla.
Source: Telecom AM---jan. 12, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: A panel of 3 federal judges indicated their misgivings about
key parts of SBC's argument for reversing an FCC order that denied the
company's entry into long distance in Okla. At issue was dispute between SBC
and AT&T as to when a Bell company can enter long distance under Telecom Act
"Track B" provision, which takes into consideration situations where RHCs
don't have required competition because no competitors have entered the
market. The FCC has interpreted Track B to apply only in rare situations
where no competitors have even sought entry. SBC, however, applies Track
B in more common situations where competitors may have sought entry but none
actually has gone into operation.

Title: From a Supplier of Gas Comes a Digital Pipeline
Source: New York Times (D10)
http://www.nytimes.com/library/cyber/week/011298optics.html
Author: Seth Schiesel
Issue: Infrastructure
Description: Last week, the Williams Companies announced their return to the
national communications business with an 11,000-mile fiber optic network and
$1 billion in contracts. In an effort to expand beyond their status as the
country's largest operator of natural gas pipelines, Williams is bidding to
become the nation's main wholesale provider of high-speed communications
services. They plan to capitalize on the "practically insatiably appetite"
for advanced networks that carry video, voice and data traffic.

** Television **

Title: TCI Set-Top-Box Pacts Pit Microsoft Against Sun
Source: Wall Street Journal (A3)
http://wsj.com/
Author: David Bank & Leslie Cauley
Issue: Cable/Set-top boxes
Description: TCI has completed separate agreements with Microsoft and Sun
that will launch a race between the two computer industry leaders to develop
an array of money-making services for interactive television. The deals also
include provisions for them to potentially finance many of TCI's costs
for deploying the millions of new set-top boxes. TCI selected Microsoft to
supply at least five million units of its Windows CE operating system. The
cable giant said they would also license Sun's PersonalJava software as
another way for software programmers to create applications for the new
devices. The digital set-top boxes are expected to be available late this
year or early next year.

Title: TCI Seeks Variety in Software And Suppliers for TV Boxes
Source: New York Times (D1,D13)
http://www.nytimes.com/library/cyber/week/011298tci.html and
http://www.nytimes.com/library/cyber/week/011198microsoft.html
Author: John Markoff with Geraldine Fabrikant
Issue: Cable/Set-top boxes
Description: This past weekend, Tele-Communications Inc. announced deals
made with Sun Microsystems Inc. and the Microsoft Corporation. Sun will
license its Java programming language to deliver programming content to
cable viewers. And Microsoft will license a consumer version of its Windows
operating system to control a future generation of set-top boxes that TCI
plans to begin distributing in 1999. These two announcements are being
viewed as the outcome of an ambitious strategic plan by John Malone, TCI's
chairman and chief executive, to hold Microsoft's current power in check
while simultaneously fueling the growth of the cable industry. By using
Sun's Java programming as a counterweight to Microsoft's Windows operating
system, Malone is attempting to regulate Microsoft to the same status as
TCI's other vendors.

Title: Biennial Review of Cable Services Bureau Rules
Source: FCC
http://www.fcc.gov/Bureaus/OGC/Public_Notices/1998/da980031.html
Issue: Cable
Description: The Office of General Counsel and the Cable Services Bureau
will hold a public forum on Friday, January 30, 1998, from 10:00 a.m. until
11:00 a.m., to receive ideas regarding Commission regulations administered
by the Cable Services Bureau that are potential candidates for repeal or
modification. This review is being undertaken in conduction with the first
biennial review of Commission regulations pursuant to Section 11 of the
Communications Act of 1934, as amended. The public is invited to attend and
participate in the discussion. Specifically, the forum will focus on the
following topics: 1) deregulation or streamlining of substantive rules; 2)
deregulation or streamlining of technical rules; and 3) streamlining of
processes, forms, and record-keeping requirements relating to cable companies.

Title: DTV in the Desert
Source: FCC
http://www.fcc.gov/Speeches/Ness/spsn801.html
Author: Commissioner Susan Ness
Issue: Digital TV
Description: Commissioner Susan Ness's 1/8/98 Remarks at the "DTV in the
Desert" Symposium at the Consumer Electronics Show in Las Vegas. "For ten or
more years, you have been hearing about, talking about, anticipating, or
working on advanced television. First we called it HDTV and then DTV, but
all along the goal has been to create an entirely new viewing experience.
1998 is the key year. After all the work in the labs, in the standards
committees, on the test beds, etc., this is the year DTV becomes a
commercial reality. It's not a mirage in the desert. This is the year
broadcasters will be busy building their digital stations and devising their
programming strategies. This is the year manufacturers will be building and
delivering the necessary equipment to do the job. And this is the year
retailers will seek to educate the public about the value of digital
television -- and to persuade them to part with their hard-earned dollars to
acquire this exciting new technology."

Title: A Data Broadcasting Future?
Source: Washington Post (F15,F18)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/12/024l-011298-idx.html
Author: Paul Farhi
Issue: Information Technology
Description: As TV stations around the country make the move to digital
broadcasting, not only will they be able to provide the consumer with
high-definition TV shows, but they will be able to transmit data to
computers as well. This ability will enable digital broadcasters to solve
one of the major problems Internet users are facing today: bandwidth
constriction. Where phone lines are unable to handle the transmission of
large streams of data, TV transmitters will be equipped to blast these bits
of information into space where computers can capture this stream and the
user can store as much as his/her hard drive can handle. This question is where
companies involved in a technology called data broadcasting plan to step in.
Companies, like Datacast in Reston, VA, are working to develop computer
antenna, plus a bit of software and a receiver chip, that will enable
computers to receive digital broadcasts. Datacast estimates that a retrofit
will cost around $100 per computer. Stuart Beck, president of Granits, a New
York company that hopes to use Datacast service on its 11 stations in the
future, said, "I think that the thin straw of digital information moving
over [phone]wires will become a rushing river of information that can be
passed wirelessly. That is an enormous opportunity for purveyors of
entertainment and conventional data."

Title: Europeans Stay Tuned To Teletext
Source: Washington Post (F15,F20)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/12/025l-011298-idx.html
Author: John Burgess
Issue: Digital Television
Description: Teletext, technology that employs an electronic data conduit
called the "vertical blanking interval" to add graphics and text to signals
from any TV station, has been available in Europe for the past 20 years and
has turned into a standard, free service. This technology has been used
almost exclusively in the U.S. to send closed captions to people with
hearing disabilities. Europeans on the other hand use this service for
everything from finding out what is on television, to the weather forecast,
to the latest soccer scores, to checking out vacation cruise packages, to
keeping up-to-date on stock quotes. Basically, think of each page of text as
a mini-channel. You may ask yourself, why don't we have this service in the
U.S.? It was briefly tried in the 1970's and early 80's, but broadcasters
feared that they would be competing against themselves because anyone who
was surfing Teletext would not be watching their shows. In Europe, one of
the major complaints teletext companies are now struggling with is the lack
of interactivity the technology currently offers. But British services and
others are now looking towards the future of digital TV, with hopes of
offering their users better interactivity, sharper images and pages with
photographs. And best of all, it is all offered without a monthly fee.

** Jobs **

Title: U.S. to Train Workers for Tech Jobs
Source: Washington Post (A1,A7)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/12/075l-011298-idx.html
Author: Rajiv Chandrasekaran
Issue: Jobs
Description: The Clinton Administration plans to announce today a broad
federal effort to assist in the training of more computer programmers. The
administration's initiatives will include millions of grant dollars to fund
educational programs, a campaign aimed at glamorizing computer-related jobs
and the creation of a nationwide job bank on the Internet. This move is made
in response to concerns voiced by economists and business leaders that
companies in the U.S. are facing a critical shortage of skilled technology
workers. A recent survey, conducted by Virginia Tech, estimates that 346,000
computer programmer and systems analyst jobs in the U.S. are vacant at
companies that have more than 100 employees. "The shortage is a fundamental
threat to the economic growth of the United States," said Harris N. Miller,
president of the Information Technology Association of America. "It's not
just hurting the ability of classic computer companies to grow. It's hurting
the ability of the entire economy to grow through the productivity increases
you get if your can install the latest technology products." The formal
announcement will take place today at a meeting of government and industry
leaders in Berkeley, CA.

Title: Telecommunications Policy Internship Opportunities in 1998
Source: NTIA
http://www.ntia.doc.gov/opadhome/nterns98.htm
Issue: Jobs
Description: The Office of Policy Analysis and Development (OPAD) is the
domestic policy division of the National Telecommunications and Information
Administration (NTIA). NTIA is an agency within the U.S. Department of
Commerce which serves as the President's principal adviser on domestic and
international telecommunications policy. NTIA is also responsible for
managing federal spectrum use. OPAD often accepts volunteer (unpaid) student
interns to assist the professional staff. Interns are welcome for either a
semester or summer long duration. Interested parties should contact, Robert
Krinsky by e-mail at rkrinsky( at )ntia.doc.gov, telephone: (202) 482-1880 or via
U.S. Mail at NTIA/OPAD, U.S. Department of Commerce, HCHB, Room 4725, 14th
St. & Constitution Ave., N.W. Washington, D.C. 20030.

** Privacy **

Title: It Isn't Just Big Brother Who Is Watching
Source: New York Times (D5)
http://www.nytimes.com/library/cyber/week/011298page.html
Author: Bill Dedman
Issue: Privacy
Description: As an increasing number of people begin to publish personal web
pages, more employers have started to make employee-judgements based on this
information placed online. Some companies just request that employees not
include references or provide links to their place of work. While others
have disciplined or dismissed employees for the content on their Web pages,
even though the pages are maintained with the employee's own computer, time
and money. Experts in employment law say that the dismissals are legal.
Almost every American is an "at will" employee, this means "you can be fired
for a good reason, a bad reason or no reason at all," said Mayer G. Freed, a
professor of law at Northwestern Univ. Although they may not break new legal
ground, the Web page cases do represent a cultural clash that is beginning
to occur between "long-standing, unwritten standards of corporate propriety
and the new perspective of Web-savvy employees -- the kind of workers that
companies are clamoring for." Linnea B. McCord, a professor of business law
at Pepperdine Univ., sees these cases as an "interesting dilemma" saying,
"Tampering in people's privacy goes pretty far and gives the employer a lot
of power. But if you can be fired for bad judgment for sitting in a public
place in your underwear, you can be fired for sitting in your underwear on
the Internet."

Title: It Isn't Just Big Brother Who Is Watching
Source: Washington Post (A7)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/12/051l-011298-idx.html
Author: Rajiv Chandrasekaran
Issue: Privacy
Description: When Timothy McVeigh [no, not that one], a sailor in the Navy,
created a "user
profile" on America Online, he did not think that using the word "gay" to
describe his marital status would violate the Clinton Administration's
"don't ask, don't tell" policy for homosexuals in the military. To insure
this he said he was careful not to use his full name or list his occupation.
But last week, the Navy's deputy personnel chief ordered that McVeigh be
dismissed from service for violating the policy. This decision was based on
information provided by a naval investigator who testified that he had
obtained McVeigh's identity by placing a phone call to AOL. Privacy
advocates are contending that AOL and the Navy may have violated federal
law. "People are given an assurance that when they use AOL, they are doing
it with a pretty strong sense of anonymity," said David L. Sobel, the legal
counsel at the Electronic Privacy Information Center. "This case raises
serious questions about AOL's protection of subscriber privacy." Wendy
Goldberg, an AOL spokesperson, would not comment on the case other than
saying that the company "saw nothing in the transcript [of the discharge
hearing] to suggest that we gave out private member information. Our policy
regarding the release of personal information is very clear. We don't
release information unless we are presented with a court order, a search
warrant or a subpoena. That policy is very clear to our employees."

** Publishing **

Title: Sale of Black Newspaper Chain Raises Thorny Issues
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Nichole M. Christian
Issue: Newspapers
Description: Sengstacke Enterprises, America's largest black newspaper
chain, is searching for a buyer. However there's a rising debate about
whether a nonblack owner can nurture the chain's distinctive place in
journalism. Potential buyers include John Johnson, founder of Ebony
magazine; Don H. Barden, head of Barden Cos., one of the nation's top
black-owned industrial companies; and Wayne McCoy, a Chicago corporate
attorney. Mr. Barden is the only one interested in buying one or all of the
papers. African-American publisher Charles Kelly commented on the chain's
importance and said, "These papers...have to remain in the hands of someone
within the same ethnicity, because we've seen from history that is we're not
around to record our stories, they will either be manipulated or ignored."

Title: Primedia to Acquire Magazine, Book Area of McClatchy Unit
Source: Wall Street Journal (B10)
http://wsj.com/
Issue: Merger
Description: Primedia agreed to acquire the magazines and book publishing
businesses of McClatchy Newspaper Inc.'s Cowles Media Co., for $175 million
and $25 million in assumed debt. Primedia will acquire 25 enthusiast titles,
11 technical and trade publications and 15 trade shows in the transaction.
William F. Reilly, Primedia's chairman and CEO, said, "It is rare that a
magazine group becomes available that fits as perfectly as Cowles does
within our magazine group." With the acquisition, Primedia will own 168
magazine titles.
*********
Look for updates this week on universal service and
the Presidential Advisory Committee on Digital TV (meeting this Friday)

Telephony
WSJ: Judicial Activism May Lower Your Phone Bill (1/7/98)
WSJ: Maverick Judge In Telecom Case Bucks System
WSJ: U.S. Asks Judge to Put Ruling on Hold Allowing Bell Firms Into
Long-Distance
CommDaily: Tauzin Asks FCC to Consider Broader Local Competition Standard
NYT: SBC Emerging as a Bull in the F.C.C.'s China Shop
WSJ: AT&T Is Expected to Purchase Teleport In a Stock Deal Valued Up to
$11 Billion
WSJ: Who Will Win The Telco Wars?

Internet/Online Services
NYT: California Governor Plans Major Push To Increase Online Education
NYT: AOL Sues
WSJ: Lawsuit Asks Court to Bar E-Mail Sent by Bulk Mailers
WSJ: On-Line Chat Can Be Safe -- If You Know What to Say

Microsoft
WP: Microsoft Official Says Battle Is Taking a Toll
WSJ: Microsoft Mulls Ways to Sweeten Its Bully Image

Journalism/Advertising
WP: A Tough Sell for David Brinkley

Lifestyles!
WP: Are Car Phones a Hazard? Report Is a Call to Action

** Telephony **

Title: Judicial Activism May Lower Your Phone Bill
Source: Wall Street Journal (A22, 1/7/98)
http://wsj.com/
Author: Robert W. Crandall
Issue: Long Distance
Description: Judge Kendall ushered in the new year by declaring
unconstitutional those provisions of the Telecom Act of 1996 that bar local
Bell companies' entry into the long-distance service until the Bells pass a
tortuous set of regulatory hurdles. Unless he's reversed, several Bell
companies will soon begin to compete with long-distance titans AT&T, MCI,
Sprint, and Worldcom. Regulators, antitrust officials and the Bells'
potential competitors have all criticized Kendall's ruling, but there
would probably be no competition in telecommunications today but for activist
judges.

Title: Maverick Judge In Telecom Case Bucks System
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Ann Davis
Issue: Long Distance
Description: When SBC wanted a judge to rule against a new
telecommunications law, it made a beeline for Joe Kendall. Normally
plaintiffs can't handpick a judge to hear their case, but SBC filed its
challenge in federal court in Wichita Falls, Texas -- hundreds of miles north
of its San Antonio headquarters -- where only one judge handles the entire
caseload. Kendall is known for his efficiency, independence, and willingness
to deal defeat to the gov't. He lived up to his reputation when he embraced
SBC's unorthodox theory that the Telecom Act singled out SBC for punishment
without a trial. He also agreed with SBC that the law unfairly limited Bell
regional phone companies' entry into the long-distance market while imposing
no such restrictions on competitors without ties to the old Bell system.

Title: U.S. Asks Judge to Put Ruling on Hold Allowing Bell Firms Into
Long-Distance
Source: Wall Street Journal (B7)
http://wsj.com/
Author: Michael Schroeder
Issue: Long Distance
Description: The Justice Dept. asked a Texas judge to put on hold a
controversial New Year's Eve ruling that overturned a key part of the
Telecom Act and allow regional Bell companies to enter the long-distance
business. In its filing to the district court, the Justice Dept. said it
plans to appeal the ruling and asked Judge Kendall to stay his decision
until a higher court completes its review. Several long-distance carriers, like
AT&T, Sprint, and MCI have asked for a stay and plan to appeal. The Justice
Dept., representing the FCC, said Judge Kendall's ruling would "radically
reshape the comprehensive legal framework crafted by Congress in the 1996 Act."

Title: Tauzin Asks FCC to Consider Broader Local Competition Standard
Source: Communications Daily
Issue: Television
Description: On Wednesday, House Telecom Subcommittee Chairman Billy Tauzin
(R-LA) said that the Federal Communications Commission should consider
whether PCS providers could be considered as providing sufficient
competition to justify allowing incumbent telecos into long distance market.
In a January 7 letter to FCC Chairman Kennard Rep Tauzin expressed
disappointment in the FCC's decision to deny BellSouth's entrance into the
long distance market in South Carolina as well as concern "about the way in
which the [Telecom] Act is being implemented."

Title: SBC Emerging as a Bull in the F.C.C.'s China Shop
Source: New York Times (D5)
http://www.nytimes.com/yr/mo/day/news/financial/phone-assess.html
Author: Seth Schiesel
Issue: Telecom Regulation
Description: SBC, the parent company of Southwestern Bell and Pacific Bell,
appears to be seeking a path into the long-distance market by whatever means
necessary. Under SBC persuasion, a court ruling last week struck down key
elements of the Telecommunications Act of 1996. This decision could prove to
be a bonanza for SBC and the other Bells, but the ruling will most likely
not go into effect any time soon and could end up in the Supreme Court. In
addition, SBC's current takeover of Southern New England Telecommunications
Corp. could be rejected by regulators. The Telecommunications Act requires
that the five local Bell companies convince the federal government that
their networks are open to competition before being allowed to offer
long-distance services to their customers. So far the FCC has rejected all
three petitions it has ruled on and it seems that little has changed since
the Act's onset. "We have a telecom act that is currently not operational,"
said C. Michael Armstrong, chairman of AT&T, the company that has the most
to lose from the Bell's entry into the long-distance market. "The industry
and the government need to step back in the midst of all this and discuss
alternatives to accomplishing opening markets, having choice and creating
local competition."

Title: AT&T Is Expected to Purchase Teleport In a Stock Deal Valued Up to
$11 Billion
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Leslie Cauley & Steven Lipin
Issue: Merger
Description: AT&T is close to acquiring Teleport Comm. for $10-$11 billion
in stock. The purchase would give AT&T a quick entry into the local phone
markets of the nation's biggest urban centers. Teleport is the biggest of a
new breed of companies offering local phone services primarily to business
customers in competition with the Baby Bells and other established phone
companies.

Title: Who Will Win The Telco Wars?
Source: Wall Street Journal (Op-eds, A9)
http://wsj.com/
Author: WSJ Editorial Staff
Issue: Competition
Description: In handicapping the supposed "coming Armageddon" between the PC
and Internet companies and the U.S. local telecommunications industry, Rich
Karlgaard perpetuates the image of local telcos as clueless, affable
bumblers sitting in the cross hairs of ruthless digital barbarians such as
Microsoft's Bill Gates and Intel's Andy Grove. First, telecommunications
isn't manufacturing, it's a service industry based on operating a
ubiquitous, shared physical infrastructure. Success is measured by the
number of customers mutually connected by the infrastructure, and by the
reliability and usability.

** Internet/Online Services **

Title: California Governor Plans Major Push To Increase Online Education
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/010898california.html
Author: Pamela Mendels
Issue: Education Tech
Description: When Governor Pete Wilson releases details of his budget
proposal today, it is expected that a major initiative to promote "distance
learning" in California will be formally announced. In an effort to boost
the state's "California Virtual University," Gov. Wilson is hoping that the
State Legislature will agree to spend $5.9 million on the project in the
fiscal year beginning in July, and $12 million over the next three years.
The project is a significant part of a Web-based catalogue of distance
learning courses offered by approximately 65 accredited public and private
colleges and universities in the state. It is hoped that eventually up to 80
percent of California's 301 accredited schools will take part.

Title: AOL Sues
Source: New York Times (D9)
http://www.nytimes.com/library/cyber/week/010898aol.html
Author: Associated Press
Issue: Online Services
Description: America Online filed suit against three more companies on
Tuesday seeking to halt the sending of unsolicited messages to the online
service's members. AOL is seeking an injunction and damages from the
companies. The three firms in mention are: IMS of Knoxville, TN; Gulf Coast
Marketing of Baton Rouge, LA; and TSF Marketing and TSF Industries of
Riverside, CA.

Title: Lawsuit Asks Court to Bar E-Mail Sent by Bulk Mailers
Source: Wall Street Journal (B6)
http://wsj.com/
Issue: E-Mail
Description: AOL filed a lawsuit against three alleged junk e-mail services,
seeking an injunction to prevent the firms from sending unsolicited e-mail.
AOL has filed numerous suits against so-called spammers contending they
clog the company's computer system and annoy its members. A group called the
Nat'l Organization of Internet Commerce threatened to disseminate a massive
list of AOL members' e-mail addresses unless AOL agreed to stop blocking
bulk e-mail. The group also runs TSF Marketing, a bulk e-mailer named by AOL
in its suit.

Title: On-Line Chat Can Be Safe -- If You Know What to Say
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Rebecca Quick
Issue: Internet/Privacy
Description: As millions of people pile into chat rooms on the Internet,
horror stories involving stalkers and the like are beginning to crop up more
often. In cyberspace, anonymity often cloaks people. Also, reams of personal
information are readily available on the Internet, making it easy for a
casual online acquaintance to find out where you live, for example. There
are precautions that online chatters can take to remain safe while on-line:
1) keep secrets, 2) go with your gut, 3) watch your signals, 4) beware the
telephone, 5) be wary in the real world, and 6) don't give up hope. The
Internet can be an easy way to meet people, particularly for those who are
too shy or too busy to go the usual routes.

** Microsoft **

Title: Microsoft Official Says Battle Is Taking a Toll
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/08/195l-010898-idx.html
Author: Elizabeth Corcoran
Issue: Antitrust
Description: In a campaign to tell its side of the story to the public and
customers, Microsoft's number two executive, Steve Ballmer, said in an
interview that the antitrust case is shaking the company's relations with
customers and hurting company morale. "I don't think we've behaved wrongly
or immorally. But we're a company that's viewed as having more power than we
think we have. And the perception is that we're harsh company that's using
its power improperly." Known as tough, abrasive competitors, Microsoft execs
are spending there time analyzing whether the very culture of the company
must change, Mr Ballmar said. "What principles do we need? How do we train
guys like me to behave in a world where we have to be more sensitive?" [No
lawsuit needed...just sensitivity training]

Title: Microsoft Mulls Ways to Sweeten Its Bully Image
Source: Wall Street Journal (B6)
http://wsj.com/
Author: David Bank & Don Clark
Issue: Microsoft
Description: Executive VP of Microsoft, Steve Ballmer, said recent focus
groups and e-mail messages show a swing in attitudes against the company
among information-technology professionals and consumers. The negative
opinions followed a federal judge's injunction against Microsoft last month
and the company's combative response to the order. Mr. Ballmer said, "The
number of people who are enthusiastic about the products and the company has
clearly taken a dip. It's not cataclysmic but it's clear." As a result of
the public relations damage, the company is considering ways to reduce its
perception of insensitivity among customers and potential partners. Ideas
include some sort of internal code of conduct, but Mr. Ballmer said that no
immediate steps are imminent. Additional steps include informing potential
partners in advance about risks before signing deals or disclose
confidential information to the company.

** Journalism/Advertising **

Title: A Tough Sell for David Brinkley
Source: Washington Post (B1)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/08/124l-010898-idx.html
Author: Howard Kurtz
Issue: Journalism/Advertising
Description: Many journalists are "aghast" with David Brinkley's decision to
become a TV spokesman for Archer Daniels Midland, the Illinois-based
agribusiness giant that sponsored ABC's "This Week with David Brinkley."
Daniel Schorr said," He built his reputation on being this acerbic,
no-nonsense guy who would never lie to you. What he is doing is giving *his*
reputation for integrity to ADM for money. What does he do the next time the
company is fined $100 million for antitrust violations?"

** Lifestyles! **

Title: Are Car Phones a Hazard? Report Is a Call to Action
Source: Washington Post (C1)
http://www.washingtonpost.com/
Author: Cindy Skrzcki
Issue: Lifestyles!
Description: An early contestant for this year's "Firmest Grasp of the
Obvious Award" is the National Highway Safety Administration. In a report
issued yesterday, NHTSA finds that cellular telephones can be an asset in
contacting law enforcement authorities and reporting road accidents and
traffic conditions. However, they are also a distraction that may increase
driver's risk of an accident on already crowded highways. NHTSA has been
collecting data for three years on cell phones and automobile crashes and
concludes: "there are trends that show that cellular telephone use is a
growing factor in crashes."
*********

Universal Service
TelecomAM: Kennard Defends January 1 Beginning for Universal Service
Support

Education
NYT: U.S. Technology Program May Grow To Include Online Education

Telecommunications
NTIA: Telecommunications and Information Infrastructure Assistance
Program
NTIA: Public Telecommunications Facilities Program
WSJ: Williams Re-Enters Wholesale Market For Long-Distance With U S
West Pact
Telecom AM: AT&T, MCI, Sprint and Others File for Stay of Telcom Act
Ruling

Merger
NYT: A Big Western Bell Rides East to Buy Connecticut Phone Company
WP: The Bells' Fastest Operator
WSJ: SBC to Acquire SNET for $4.26 Billion

Cable
B&C: Kids crave cable
B&C: NAB to support 'local into local'

FCC
B&C: Kennard won't grant Tribune a reprieve
B&C: Consumer groups seek revisions in inside wiring rules

Internet
NYT: New Rules on Internet Content Fuel the Battle Over Filters
NYT: FEC Puts Campaign Reports on Web
WP: On-the-Go Troops May Soon Vote Via Internet
WP: What's In a Name? The Future of Rockville Internet Firm

Antitrust
TelecomAM: Markey Wants Antitrust Div. to Take Closer Look at RHCs
WSJ: Microsoft Corp. Seeks to Oust 'Special Master'

Media & Politics
B&C: Media group wants to expand public interest commission
B&C: Government to buy anti-drug time
TelecomAM: New Watergate Tapes Show Nixon Considering Attacks on
Post Licenses

Lifestyle
WP: From War to Art

** Universal Service **

Title: Kennard Defends January 1 Beginning for Universal Service Support
Source: Telecom AM---jan. 6, 1998
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The universal service programs providing support for schools,
libraries and rural health care began on schedule Jan. 1, despite
congressional calls for delay. Delaying them would have exacerbated "the
troubling gulf between those in our society who have access to advanced,
affordable telecommunications technology and those who do not," FCC Chairman
Kennard said in a Dec. 30 letter. Kennard also said that implementing the
programs as scheduled would "disrupt the plans of beneficiaries and service
providers alike." He said the support programs are not entitlements because
funding doesn't come from the gov't., beneficiaries pay for "a portion, and
many cases a majority" of the supported services, and support can be denied
if funds run out.

** Education **

Title: U.S. Technology Program May Grow To Include Online Education
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/010498education.html
Author: Pamela Mendels
Issue: Education Technology
Description: The Commerce Department is expected to decide early this year
whether to provide funding to learning technology ventures through the
Department's Advanced Technology Program, which has funded such things as
better refrigeration technologies and improved health information systems.
Program manager Richard W. Morris says: "If we migrate to the Web, all of a
sudden
the economies of scale change dramatically. If we do the technology right,
we can re-use and update and integrate the pieces of instruction in almost
an infinite number of ways so all the advantages of the Internet make for a
new economy of learning."

** Telecommunications **

Title: Telecommunications and Information Infrastructure Assistance Program
Source: NTIA
http://www.ntia.doc.gov/ntiahome/press/98tiiap1.htm
Issue: TIIAP/Funding
Description: NTIA has announced the 1998 round of the Telecommunications and
Information Infrastructure Assistance Program (TIIAP). For fiscal year 1998,
approximately $17 million in grant funds will be awarded. The deadline for
submitting applications is March 12, 1998. On January 15, NTIA will hold a
short public briefing to introduce the 1998 TIIAP competition. NTIA will
also hold a series of regional "Outreach Workshops and Partnering Events."

Title: Public Telecommunications Facilities Program
Source: NTIA
http://www.ntia.doc.gov/ntiahome/press/98ptfp.htm
Issue: Public Broadcasting
Description: The Public Telecommunications Facilities Program (PTFP)
announced that FY98 grant applications are available as of January 5.
February 12, 1998 has been established as the deadline for returning
completed applications. Approximately $21 million is available for grant
awards.

Title: Williams Re-Enters Wholesale Market For Long-Distance With U S West Pact
Source: Wall Street Journal (B4)
http://wsj.com/
Author: Terzah Ewing & Stephanie N. Mehta
Issue: Long Distance
Description: Williams Cos., a Tulsa, Okla. natural-gas pipeline company,
re-entered the wholesale long-distance market by reaching a five-year
agreement to provide long-distance transmission and other services to U S
West, as well as additional agreements that will expand its network and its
customer base. The new agreements "lay the groundwork for them to be a major
player" in communications, said Paul Elliott, whose Elco Energy Fund owns
50,000 Williams shares. U S West says the agreement will give it additional
capacity for its burgeoning national data-networking business.

Title: AT&T, MCI, Sprint and Others File for Stay of Telcom Act Ruling
Source: Telecom AM---jan. 6, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Intervening defendants AT&T, MCI, Sprint, the ALTS, CompTel,
and the Telecommunications Resellers Assoc. filed for a stay of a federal
court judge's ruling that Sections 271-275 of the Telecom Act are
unconstitutional. Because the ruling is likely to be reversed on appeal and
"threatens to derail key parts of one of the most important congressional
enactments in many years, and will convulse national telecommunications
markets, the status quo should be maintained until the Court of Appeals has
had a chance to pass on the matter," the motion said. The SBC said it was
disappointed by the FCC's decision to seek a stay. It said the ruling
"finally leveled the playing field" by allowing it to offer long distance
service in its region and reiterated that its markets are open to competition.

** Merger **

Title: A Big Western Bell Rides East to Buy Connecticut Phone Company
Source: New York Times (D1)
http://www.nytimes.com/yr/mo/day/news/financial/sbc-snet.html
Author: Seth Schiesel
Issue: Merger/Telecommunications
Description: SBC Communications Inc., the nations largest local telephone
company, announced yesterday that it will acquire the Southern New England
Telecommunications Corporation, the local telephone company for almost every
resident of Connecticut, for $4.4 billion in stock.

Title: The Bells' Fastest Operator
Source: Washington Post (D1,D4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/06/114l-010698-idx.html
Author: Mike Mills
Issue: Telecommunications
Description: Edward Whitacre, Chairman of SBC Communications Inc., has a
growing image of being the nation's most aggressive Bell CEO. The
Telecommunications Act of 1996 was supposed to work as a starting gun for
the entire industry. But no one jumped off the block faster than Whitacre.
Since that time, he engineered SBC's $16.5 billion acquisition of Pacific
Telesis Group, giving it not only California and Nevada but also undersea
access to Asia and land access to Mexican and South American markets,
tantalized Wall Street by holding merger talks with AT&T, maintained
double-digit earnings growth for SBC, pursued a law suit contending that the
1996 telecommunications law violates his company's constitutional rights by
keeping it out of the long-distance market, and as of yesterday announced
SBC's offer to purchase Southern New England Telecommunications Corporation.
Critics of SBC will most likely push to have regulators impose stiff
conditions, such as agreeing to take certain steps to open local markets to
competitors, before approving the company's purchase of SNET.

Title: SBC to Acquire SNET for $4.26 Billion
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Merger
Description: SBC has agreed to acquire Southern New England
Telecommunications for $4.26 billion in stock in order to become the first
Baby Bell to enter the long-distance business. The acquisition gives SBC a
good foothold in the Mid-Atlantic and Northeastern service area dominated by
Bell Atlantic. SNET began offering long-distance service 3 years ago in
Connecticut, and has racked up more than $100 million in long-distance
revenue in 1996. SBC expressed confidence that the deal wouldn't run afoul
of the Telecommunications Act of 1996, and analysts likewise predicted the
accord would have little difficulty passing muster with federal regulators.

** Cable **

Title: Kids crave cable
Source: Broadcasting&Cable (p.18)
http://www.broadcastingcable.com/
Author: Donna Petrozzello
Issue: Cable
Description: Children are watching more kids shows on basic cable and
fewer on the broadcast networks. A survey by BJK&E Media of New York reports
that children 2-11 watched an average of 211 hours of basic cable
programming in 96-97 season. Meanwhile, children watched an average of 48
hours of broadcast TV from fourth quarter 96 through third quarter 97. BJK&E
researchers attribute some of the audience shift to the amount of kids
programming that cable offers. BJK&E estimates that there are 10 times as
many hours on basic cable devoted to kids as there are on broadcast TV.

Title: NAB to support 'local into local'
Source: Broadcasting&Cable (p.14)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Satellites
Description: The NAB plans to adopt a position that would support
satellite retransmission of local TV signals into their markets as long as
satellite broadcasters carry all the signals in those markets, sources say.
Bill Sullivan, VP of Cordillera Communications, said, "I think we want to
support some form of local into local as long as the local stations have the
protection they need." The NAB, although previously reluctant to state an
official position, long has quietly supported satellite carriers' so-called
local-into-local plans. And, if NAB has its way, satellite carriers that
choose to rebroadcast local signals will be subject to must-carry
requirements in those markets as well as to other regulations that now apply
to cable operators.

** FCC **

Title: Kennard won't grant Tribune a reprieve
Source: Broadcasting&Cable (p.20)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: FCC
Description: FCC Chairman William Kennard is not letting Tribune
Broadcasting out of a requirement that it spin off one of its Miami media
holdings by March 22. Tribune, which is challenging the FCC requirement in
court, has been pushing for a repeal of the cross-ownership restriction. "If
the commission were to waive its ownership rules merely because a biennial
review was ongoing or upcoming...our ownership rules would never be
enforced," Kennard wrote Senate Commerce Committee Chairman John McCain
(R-Ariz.).

Title: Consumer groups seek revisions in inside wiring rules
Source: Broadcasting&Cable (p.25)
http://www.broadcastingcable.com/
Issue: FCC
Description: The Media Access Project and the Consumer Federation of
America are two of four groups that have asked the FCC to reconsider parts
of the new "inside wiring" rules they adopted in October. The rules were
aimed at helping new video distributors gain access to the wires inside
apartment buildings, require building owners to give incumbent video
providers 90 days' notice of any plans to terminate access to the building.
The incumbent then has 30 days to decide whether to remove or abandon the
inside wires or sell them to the owner or the provider. The groups say the
new rules fail to provide competition or greater consumer choice.

** Internet **

Title: New Rules on Internet Content Fuel the Battle Over Filters
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/010698standards.html
Author: Jeri Clausing
Issue: Internet Regulation
Description: The Platform for Internet Content Selection Rules (PICSRules),
a set of filtering rules that allow or block access to a Web site, was
endorsed last week by the consortium that sets standards for the World Wide
Web. Their endorsement will make it easier for parents to adjust their
browsers and choose between a variety of filtering software and rating
systems that are being developed for the Internet. However, the Global
Internet Liberty Campaign, a collection of civil liberty and privacy groups,
say the PICSRules go beyond the original concept that many groups endorsed
after that Supreme Court struck down the Communications Decency Act this
past summer. Barry Steinhardt of the American Civil Liberties Union said
that the fear the Campaign has is "that you are turning over to the censors
of the world a censor- friendly architecture of the internet. And it doesn't
take a great leap of the imagination to understand what the Singapore
government, the Chinese government or even the U.S. government will want to
do with the system that allows whole domains to be blocked out, or whole
nations to be blocked out." In reaction to these types of comments, Paul
Resnick, one of the authors of PICSRules said, "PICSRules are about making
it easy for parents to install filtering software. That's important for
parents, not governments."

Title: FEC Puts Campaign Reports on Web
Source: New York Times
http://www.nytimes.com/library/cyber/week/010698campaign.html
Author: Associated Press
Issue: Internet Use
Description: The Federal Election Commission has started to post digital
images of campaign finance records on its Web site. This new addition will
allow the public to look up reports on many federal candidates, political
parties and political action committees. You can access the FEC's site at:
http://www.fec.gov/

Title: On-the-Go Troops May Soon Vote Via Internet
Source: Washington Post (A11)
http://www.washingtonpost.com/
Author: Colorado Springs Gazette
Issue: Internet Use
Description: The majority of men and women in the military do not live in
the state in which they are registered to vote. Due to this, military
personnel have to vote absentee or not at all. In an effort to make this
process easier on the people defending their country, the Defense Department
is working to develop a system that will allow troops to vote by computer
over the Internet. Their goal is to have the system up and running by the
November elections.

Title: What's In a Name? The Future of Rockville Internet Firm
Source: Washington Post (D1,D3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/06/137l-010698-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet
Description: Aetea Information Technology Inc., located in Rockville, MD, is
one of approximately 70 companies worldwide that are selling a new genre of
Internet addresses. Aetea and other firms are members of the Council of
Registrars (Core), a Geneva-based group that offers seven new domains. In
addition to .com, .org, and .net, these domains include: .shop for
retailers, .arts for cultural groups, .info for information services,
and .nom for individuals. For the new addresses to work, Core needs
approval from the US gov't and is waiting for the development of more
complex software. Also, in order for the everyday computer user to have
access to Core address sites, the domains must be included on the network's
"rootservers," machines that function as the Internet's white pages. This
means Core will need to deal with the world's main root server, Network
Solutions Inc., the entity they were formed to compete with. Core's plan
could be pushed forward or held back depending on decisions made by a
federal task force that is looking into the future of Internet addressing.

** Antitrust **

Title: Markey Wants Antitrust Div. to Take Closer Look at RHCs
Source: Telecom AM---jan. 6, 1998
http://www.telecommunications.com/am/
Issue: Antitrust
Description: Rep. Markey (D-Mass.), senior Telecom Subcommittee Democrat,
will ask the Justice Dept. later this week to step up investigations of
antitrust allegations against SBC and RHCs, his staff said. Markey has
strongly criticized SBC Comm. over its suit in U.S. Dist. Court, where a New
Year's Eve decision overturned Sec. 271 of the Telecom Act requiring RHCs to
meet local market-opening conditions before being allowed to enter
long-distance business. Markey believes that suit means the telcos broke a
deal with Congress. As a result, Markey believes that since SBC and U S West
have "decided to take parts of the Telecom Act they like and avoid the whole
procedure," he wants Antitrust Asst. Attorney Gen. Joel Klein to step up
investigations.

Title: Microsoft Corp. Seeks to Oust 'Special Master'
Source: Wall Street Journal (B4)
http://wsj.com/
Author: David Bank & Michael Schroeder
Issue: Antitrust
Description: Microsoft is seeking to remove Professor Lawrence Lessig, a
Harvard law professor, from the gov't.'s antitrust case against the company.
They cite that e-mail correspondence between the professor and Netscape
reveals a bias against Microsoft. Professor Lessig was appointed as a
"special master" by Judge Jackson to oversee the evidence against Microsoft.
In a letter, the software giant asked Mr. Lessig to disqualify himself
because of the e-mail exchange. The DOJ rejected Microsoft's arguments,
saying that the assertions were "unfounded and overblown."

** Media & Politics **

Title: Media group wants to expand public interest commission
Source: Broadcasting&Cable (p.25)
http://www.broadcastingcable.com/
Issue: Media & Politics
Description: The Media Institute wants to add a few more members to Vice
President Gore's advisory committee on digital TV public interest
obligations. In a letter to President Clinton, Media Institute President
Patrick Maines said the current crew is lacking in four departments: First
Amendment scholarship, economics, journalism and technology. The group asked
that the White House add an expert in each of the four categories. Maines
wrote, "The committee stands a better chance of offering sound and
well-reasoned recommendations...if it has the benefit of a full range of
viewpoints and expertise."

Title: Government to buy anti-drug time
Source: Broadcasting&Cable (p.15)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Media & Politics
Description: The White house announced a program to boost anti-drug
advertising campaigns to $195 million a year. It expects Congress to
appropriate that amount each year for five years. The administration plans
to place ads on all media, including TV and radio, print, billboards, buses
and the Internet. The White House's Office of Nat'l Drug Control Policy
(ONDCP) says it's specifically targeting 11-13-year-olds, but will also aim
its anti-drug message at 9-17-year-olds and their parents. Once the campaign
gets rolling, the ONDCP plans to negotiate with broadcasters for some
free---as well as paid---time during which to run the ads.

Title: New Watergate Tapes Show Nixon Considering Attacks on Post Licenses
Source: Telecom AM---jan. 6, 1998
http://www.telecommunications.com/am/
Issue: Media & Politics
Description: A new book of transcripts of Watergate tapes released late
last year reveals several instances in which President Nixon and his top
aides considered using the FCC to punish the Washington Post for its
Watergate coverage. In a sequence of discussions about retaliation, on Aug.
9, 1972 Nixon dictates to aide John Ehrlichman that Post publisher Katharine
Graham should be told that his Administration has "an impeccable record" of
not interfering with TV licenses. However, on Oct. 25, Nixon tells aide
Charles Colson: "We're going to screw them...They've got a radio and a
television station, WTOP, a CBS outlet." On Nov. 1, 1972, with his
reelection just days away, Nixon told Ehrlichman about how it wouldn't be
possible to "forgive and forget" after election.

** Lifestyle **

Title: From War to Art
Source: Washington Post (A13)
http://www.washingtonpost.com/
Author: James K. Glassman
Issue: Lifestyle
Description: According to the Pew Research Center for Politics and the
Press, Americans are "less attentive to the news than at any time in recent
years." James Glassman asks us to question if this is such a bad thing. As
John Adams, our second president, put it in a letter to his wife Abigail, in
1780, "I must study politics and war, that my sons may have liberty to study
mathematics and philosophy. My sons ought to study mathematics and
philosophy ... in order to give their children a right to study painting,
poetry, music, architecture, statuary, tapestry, and porcelain." It appears
that Americans today aren't as interested in what the government is doing as
long as it remains rather unobtrusive. Maybe we have reached an era where
we can turn our attention away from war and politics and toward an
engagement with culture and the art of living. Mr. Glassman acknowledges
that there is still "poverty, ignorance and pathology." But he states that
more than ever, "Americans are fruitfully pursuing happiness, the way the
Declaration of Independence intended." [Got that? Now back to work.]
*********