May 1998

Communications-related Headlines for 5/29/98

Merger
MCI to Sell Wholesale Internet Unit to Cable and Wireless (NYT)
Connecticut Seeks to Block SBC Acquisition of SNET (WSJ)

Internet
Lawsuit for Determining Whether Framing is Thieving (CyberTimes)
Head of Germany Web Sentenced for Pornography

Antitrust
PC Maker NEC to Block Microsoft Web Browser (WP)

** Mergers **

Title: MCI to Sell Wholesale Internet Unit to Cable and Wireless
Source: New York Times (C4)
http://www.nytimes.com/library/tech/98/05/biztech/articles/29mci.html
Author: Seth Schiesel
Issue: Mergers
Description: In an attempt to placate the regulators reviewing the proposed
MCI-WorldCom merger, MCI has announced that it will sell its wholesale
Internet business to Cable and Wireless PLC for $625 million in cash. MCI
executives briefed officials at the Department of Justice on the sale some
time ago, hoping the DOJ would indicate that it would win approval for the
merger. The DOJ said it could not evaluate the effect of the sale without
talking to MCI's competitors, so the company moved ahead with the sale
anyway. MCI is not happy with the way the DOJ is handling the merger approval.

Title: Connecticut Seeks to Block SBC Acquisition of SNET
Source: Wall Street Journal (B7)
http://wsj.com/
Author: WSJ Staff Reporter
Issue: Mergers
Description: Connecticut's attorney general, Richard Blumenthal, has moved
to block SBC Communications from acquiring Southern New England
Telecommunications Corp. Blumenthal asked the state's Dept. of Public
Utility Control to dismiss the companies merger application, claiming that
the companies haven't provided enough information to show how their merger
would reduce telephone rates.

** Internet **

Title: Lawsuit for Determining Whether Framing is Thieving
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/cyberlaw/29law.html
Author: Carl S. Kaplan
Issue: Internet Regulation
Description: The owners of The Journal Gazette and The News-Sentinel, two
papers that are both published in Fort Wayne, Ind., filed a lawsuit against
a free community Web site, called Ft-Wayne.Com, its developer and an
Internet service provider earlier this month. They charge that the Web site
in mention improperly linked users to the newspaper's articles. When a
Ft-Wayne.Com user clicked on a link to one of the two paper's articles,
instead of being transferred directly to the newspaper's site, the community
Web site would use frames to alter the display of the newspaper's article by
placing its own site address and ads in the browser window. The Journal
Gazette and The News-Sentinel charge that by the community Web site running
its own URL and ads over the newspaper's articles, its developers were
"looting" the property of the newspapers. Frames are widely used on Web
sites to display two or more pages of information in separate areas of the
same browser window. Framers say that they are offering a one-stop-service
to Web surfers. Owners of the sites being put into the frames assert that
the framers are "parasites" that "rip off and alter" copyrighted material.
Whether the practice of framing is illegal is an issue that has yet to be
resolved by the court system. Kenneth Freeling, a partner at Kaye Scholer
Fierman Hays & Handler law firm in New York who has written about the
problems of framing said: "It's clearly an unsettled are of the law...I have
not heard of any actual decisions in this area." He added that there are
strong arguments on both sides of the issue but the public's interests may
lean towards limiting the practice.

Title: Head of Germany Web Sentenced for Pornography
Source: New York Times (A3)
http://www.nytimes.com/library/tech/98/05/biztech/articles/29compuserve....
Author: Alan Cowell
Issue: International/Internet Content
Description: A Bavarian judge sentenced the former head of Compuserve
Deutschland for distribution of pornography -- and then suspended the
sentence. The case is the first time in Germany that an Internet access
provider has been held responsible for images reached through the service.
Judge Wilhelm Hubbert said, "Even on the Internet, there can be no lawless
zones." Legislation passed after the manager was indicted "exempts providers
from legal responsibility for materials beyond their control," Cowell writes.

** Antitrust **

Title: PC Maker NEC to Block Microsoft Web Browser
Source: Washington Post (F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/29/082l-052998-idx.html
Author: Rajiv Chandrasekaran
Issue: Software/Antitrust
Description: NEC America Inc., a personal computer maker, plans to block
access to Microsoft's Internet browser on a new line of notebook computers
its planning to introduce next week, said a company spokeswoman. NEC's
decision will make it the first major PC maker to take advantage of a legal
settlement between the Justice Dept. and Microsoft Corp. that allows PC
makers to offer Microsoft software without "easy access" the software
giant's browser.
*********
...and we are outta here. Enjoy your two-day weekend!

Communications-related Headlines for 5/28/98

Telephone Regulation
Methodology for Determining Universal Service Support (FCC)
Bell Atlantic Tells FCC: 'Don't Mess With Access Charges' (TelecomAM)
AT&T to Pass Internet Costs To Callers (WP)

Campaigns
Adversaries Join Campaign to Improve Coverage of State, Local
Politics (WP)

Television
TV Ratings Frequently a Jumble to Parents (ChiTrib)

Antitrust
Antitrust Case Against Is on Horizon (WP)
U.S. Is Preparing to Sue Intel Over Its Microchip Monopoly (NYT)
Plans for Digital TV in Germany Suffer Setback As EU Commission
Blocks Bertelsmann Alliance (WSJ)
German Digital TV Deal Is Blocked by Regulators (NYT)

Internet
MCI Plans to Sell Internet Assets To British Firm (WP)
Microsoft Will Let Gateway Alter Screen (WP)
Sick of Junk E-Mail? Here Are Some Tips for Fighting Back (WSJ)

Arts
Site Showcases Films Made Especially for the Web

Technology
Lucent Unveils New Products to Expand Its Presence in
Data-Networking Market (WSJ)

** Telephone Regulation **

Title: Methodology for Determining Universal Service Support
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da980987.html
Issue: Universal Service
Description: The Federal Communications Commission will hold an en banc
hearing on Monday, June 8, 1998, from 9:30 a.m. to 4:30 pm, in the
Commission meeting room, Room 856 at 1919 M. Street, N.W., Washington, D.C.
The Commission has invited the state members of the Federal-State Joint
Board on Universal Service to also preside at this en banc. At the en banc
hearing, the Commission and the state members of the Joint Board will review
certain proposals for revising the methodology for determining federal
universal service support for non-rural carriers. The en banc will be
carried live on the Internet. Internet users may listen to the real-time
audio feed of the en banc by accessing the FCC Internet Audio Broadcast Home
Page. Step-by-step instructions on how to listen to the audio broadcast, as
well as information regarding the equipment and software needed, are
available on the FCC Internet Audio Broadcast Home Page. The URL address for
this home page is http://www.fcc.gov/realaudio/.

Title: Bell Atlantic Tells FCC: 'Don't Mess With Access Charges'
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Telephone Regulation
Description: Bell Atlantic Senior Vice President for Government Relations
Thomas Tauke told reporters that the FCC should "leave access charges alone
for a year" and "complete pricing
flexibility" as promised. "Don't mess with access charges," he said. FCC
Chairman Bill Kennard has said he'd like to reexamine access charges because
the competition that was supposed to lower rates has not materialized. Mr.
Tauke claims the FCC promised last year to hold a proceeding that would
allow local phone companies to adjust rates without FCC approval, but the
Commission has not followed through. Mr. Tauke also criticized AT&T's plan
to impose a new monthly charge on consumers to recover the costs of a
universal service program to hook up schools and libraries to the Internet.

Title: AT&T to Pass Internet Costs To Callers
Source: Washington Post (C4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/28/158l-052898-idx.html
Author: WP Staff Reporters & News Service
Issue: Long-Distance/Universal Service
Description: AT&T Corp. said yesterday that starting in July it will begin
charging residential long-distance customers "a fee of about 5 percent of
the cost of their out-of-state calls to help subsidize Internet hookups for
schools, libraries and rural health care facilities. In addition, customers
will be charged a fee of 1.8 percent of their monthly charges for intrastate
long-distance calls." This move by AT&T could further fuel the growing
controversy over how to fund the schools and libraries program.

** Campaigns **

Title: Adversaries Join Campaign to Improve Coverage of State, Local Politics
Source: Washington Post (A4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/28/131l-052898-idx.html
Author: Howard Kurtz
Issue: Campaigns
Description: Pew Charitable Trust is spending $7 million on several projects
designed to spur better media coverage and higher standards in state and
local politics. "It's about raising the quality of the conversation," said
Paul Light, who runs Pew's public policy department. "The main thrust is to
go directly to the American public and say we can do better...Americans
don't expect much from their candidates, and their candidates deliver." A
key focus of the projects is the "meager" television coverage of state and
local campaigns, which is often overshadowed by reports on crime and other
more "sensational" fare.

** Television **

Title: TV Ratings Frequently a Jumble to Parents
Source: Chicago Tribune (p1)
http://chicago.tribune.com/textversion/article/0,1492,SAV-9805280126,00....
Author: Tim Jones
Issue: V-Chip
Description: The TV ratings system has been in place for months, but is
anyone using it? The Kaiser Family Foundation released two polls yesterday
-- one found that 54% of parents reported that they used the rating system
to help them decide what their kids should watch; the other found that 36%
of kids 10 to 17 had decided not to watch a show because of it's rating
either to avoid the wrath of parents or the shame of watching a show
targeted at kids. Jones writes, "People want some controls, but they don't
entirely trust the television industry to be the ratings gatekeeper between
the TV set and their children." Vice President Al Gore attended the surveys'
release and encouraged parents to use the ratings system and the V-chip when
it becomes available. [See Kaiser Family Foundation at
http://www.kff.org/homepage/]

** Antitrust **

Title: Antitrust Case Against Is on Horizon
Source: Washington Post (C1,C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/28/163l-052898-idx.html
Author: Elizabeth Corcoran & David Segal
Issue: Antitrust
Description: Federal antitrust investigators are planning over the next week
to recommend that the Federal Trade Commission charge Intel Corp. with
unfairly using its market clout to "strong-arm" corporate customers.

Title: U.S. Is Preparing to Sue Intel Over Its Microchip Monopoly
Source: New York Times (A1)
http://www.nytimes.com/library/tech/98/05/biztech/articles/28intel.html
Author: Joel Brinkley
Issue: Antitrust
Description: The Federal Trade Commission is preparing a antitrust suit
against microprocessor chip manufacturer Intel. Brinkley writes, "The suit
will accuse Intel of selectively withholding key technical information about
its microprocessors chips from the computer manufacturers with which Intel
is involved in patent and related product disputes. Without that data, the
manufacturers are unable to design new products." This may be the first of
multiple suits filed by the FTC against Intel.

Title: Plans for Digital TV in Germany Suffer Setback As EU Commission
Blocks Bertelsmann Alliance
Source: Wall Street Journal (A19)
http://wsj.com/
Author: Cacile Rohwedder & Julie Wolf
Issue: Antitrust/Digital TV
Description: "The European Union Commission rejected a planned television
alliance of Germany's Kirch Group, Bertelsmann AG and Deutsch Telekom AG,
the countries dominant telephone and cable group. The ban sets back the
companies, which had invested millions of dollars and delays development of
digital pay TV in Germany, Europe's largest market."

Title: German Digital TV Deal Is Blocked by Regulators
Source: New York Times (C4)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/28hdtv.html
Author: Edmund Andrews
Issue: Antitrust/Digital TV
Description: The European Commission has blocked a digital television
alliance between Bertelsmann AG, Germany's giant publishing and media
conglomerate; Deutsche Telekom AG, the nation's telephone and cable
television company, and the Kirch Group, which owns the German rights to
billions of dollars worth of television programs and movies. The three
wanted to offer an array of pay-TV services including movies and sports and
dozens of television channels. Germany is the biggest television market in
Europe.

** Internet **

Title: MCI Plans to Sell Internet Assets To British Firm
Source: Washington Post (C1,C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/28/167l-052898-idx.html
Author: Mike Mills
Issue: Merger
Description: MCI Communications Corp. plans to announce the sale of its
Internet facilities to Cable & Wireless PLC of Britain. Sources familiar
with the case say that MCI hopes the deal will help facilitate approval by
European regulators of the company's merger with WorldCom Inc.

Title: Microsoft Will Let Gateway Alter Screen
Source: Washington Post (C3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/28/169l-052898-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Browsers
Description: Gateway 2000 Inc., maker of personal computers, announced
yesterday that it "won a key concession" from Microsoft Corp. to modify the
screens that computer users first see when they turn on a computer equipped
with Windows 98. Gateway said that the modification would allow the company
to promote its own Internet-access service before users view a directory of
service providers selected by Microsoft. "We're extremely interested in a
high level of personalization and customization for our customers," said
Gateways's chief executive, Ted Waitt. "We don't believe there's one slice
[of Windows] that fits everyone out there."

Title: Sick of Junk E-Mail? Here Are Some Tips for Fighting Back
Source: Wall Street Journal (B7)
http://wsj.com/
Author: Rebecca Quick
Issue: E-Mail
Description: One of life's little annoyances (sometimes not so little) are
those irritating on-line pitches better known as spam. Rather than spend
your time waiting for the government to step in there are some common sense
rules you can employ to keep spam from jamming your email box. Email
filtering systems can help you weed out of those spammers lists that you are
already on and scan your mail to get rid of the stuff you don't want. You
also can report the really bothersome ones to their Internet service
provider or the Federal Trade Commission (who is now running a vigorous
campaign to squash the most obnoxious spammers). Other suggested options
are: Try to maintain a low-profile (which can be much easier to say than
do); Don't reply to junk email as that can alert the spammer that they have
a live one that actually reads her/his email; And if nothing else works
close down your existing account and start anew with a fresh, clean slate.

** Arts **

Title: Site Showcases Films Made Especially for the Web
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/artsatlarge/28artsatlarg...
Author: Matthew Mirapaul
Issue: Arts
Description: New Venue is the first online film festival that is dedicated
to showing only movies made expressly for the Web. Each week New Venue will
showcase a brief feature created specifically for computer viewing. The
clips will be playable in either the QuickTime or Flash browser plug-in.
Jason Wishnow, founder of New Venue, said about the project: "I thought that
if filmmakers were to pay attention to the major constraints for movies on
the Web -- smaller image size, a lower frame rate, the pixelated quality
that comes out of compression, a difference in audio fidelity, and how it
has to be integrated into the overall Web page -- they might come up with
something very exciting." Since April, more than 40 filmmakers have
submitted flicks. While many seem to still be grappling with the new medium,
Wishnow hopes that "the ground is being laid for something new." The site is
scheduled to officially open on Monday, June 1st, but its producers have
agreed to grant early access to CyberTimes "arts( at )large" readers starting
today. You can access the New Venue site at:
http://dfilm.mpl.net/newvenue/index.html

** Technology **

Title: Lucent Unveils New Products to Expand Its Presence in
Data-Networking Market
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Technology
Description: Lucent Technologies Inc. has unveiled a group of products that
will help telecommunications carriers manage their voice and data traffic
over their networks. The new system is expected to boost Lucent's bid to
compete with other computer-networking companies.
*********

Communications-related Headlines for 5/27/98

Education
Report Examines How Technology May Change Higher Education (CyberTimes)

Regulation
ICC Newcomer Takes Over as Its Chairman (ChiTrib)

Television
Commercials Are Gobbling Up More and More TV Time (ChiTrib)
The New Network: No Sex, No Violence (WP)

Jobs
Triumph and Trials In Welfare to Work (WP)

Merger
Regulators May Push WorldCom, MCI (WSJ)

Internet
www.ooops: Companies Capitalize on Typos (WP)

** Education **

Title: Report Examines How Technology May Change Higher Education
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/education/27education.html
Author: Pamela Mendels
Issue: Education
Description: According to a report prepared by Coopers & Lybrand, the
accounting and consulting firm that has a large practice advising college
and university administrators, college and university officials should begin
preparing for corporations to move into their academic territory. It seems
that more and more businesses are eyeing a potential market in learning,
partially spurred by the availability of new online teaching techniques.
Critics say this largely "corporate sponsored hype" could encourage the
acceptance of what they consider to be "a misguided notion: that virtual
classes are just as good as the real thing." The report titled, "The
Transformation of Higher Education in the Digital Age," is a white paper
based on a two-day discussion that took place last summer among about 35
people assembled by Coopers & Lybrand. All the participants had in common
was their concern for the following three trends: 1) A predicted boom in the
number of students seeking higher education, 2) The rise of for-profit
educational institutions, and 3) The development of technology which could
make it possible for educational institutions to distribute courses widely.

** Regulation **

Title: ICC Newcomer Takes Over as Its Chairman
Source: Chicago Tribune (Sec2,p7)
http://chicago.tribune.com/news/metro/chicago/article/0,1051,SAV-9805270227
,00.html
Author: Cornelia Grumman
Issue: Regulation
Description: Illinois Governor Jim Edgar has appointed Richard Mathias, a
retired Winnetka (IL) attorney, as chairman of the Illinois Commerce
Commission (ICC). The ICC regulates utilities in Illinois and will rule
shortly on power industry regulation. Mr. Mathias is an expert in insurance,
tax and steel production issues. He replaces outgoing Chairman Dan Miller.

** Television **

Title: Commercials Are Gobbling Up More and More TV Time
Source: Chicago Tribune (Sec5,p4)
http://chicago.tribune.com
Author: Tim Goodman
Issue: Television Economics
Description: A new study by advertising trade groups shows that commercial
time is on the rise. In 1991, the average primetime hour of TV had 9 minutes
and 38 seconds of commercials. According to the survey, the Big Four
networks now devote 11 minutes and 12 seconds to commercials -- add
promotions and public service announcements in and the total reaches just
over 15 minutes per hour.

Title: The New Network: No Sex, No Violence
Source: Washington Post (D1,D8)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/27/057l-052798-idx.html
Author: Sharon Waxman
Issue: Television
Description: The seventh network to join the television market is Pax NET,
created by born-again Christian and Florida multimillionaire Lowell "Bud"
Paxson. Pax Net promises a wholesome TV viewing philosophy. "It's
programming that any member of the family can watch without being offended,"
says Paxson, who is appalled by the "dearth of such shows" on network
television. "Our promise is no gratuitous sex, no violence, no obscene
language." Some television analysts think that Paxson is taking the right
approach. "It's a niche strategy, and niche strategies are smart strategies
in a fragmented media marketplace," says Bishop Cheen, a media analyst at
First Union Capitol Markets. "It is clear in the '90s that you cannot be
profitable and be all things to all people. Paxson has what I believe is a
targeted tonnage approach to broadcasting. But it's a different concept.
Both Madison Avenue and Wall Street are going to have to move up the
learning curve about it."

** Jobs **

Title: Triumph and Trials In Welfare to Work
Source: Washington Post (A1,A10)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/27/092l-052798-idx.html
Author: Judith Havemann & Barbara Vobejda
Issue: Jobs
Description: President Clinton's Welfare to Work Partnership program is
undergoing a significant test in Kansas City where the Sprint Corp. "pitted
the performance" of newly hired inner-city welfare recipients against that
of new suburban workers. Sprint hired the two groups of employees on the
same day for the same job -- working as a telephone operator. Six months
later, Sprint reports that 85 percent of the welfare employees have remained
on the job in comparison to only 33 percent of the suburban workers. Sprint
did not enter into this test to measure the tenacity of welfare workers, but
it found that welfare recipients, desperate for work, are much more likely
to hang on to their jobs than other new recruits.

** Merger **

Title: Regulators May Push WorldCom, MCI
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John R. Wilke
Issue: Merger
Description: As a condition of approving the WorldCom Inc. and MCI
Communications Corp. $37 billion merger, U.S. and European antitrust
regulators will most likely demand one of the two companies to sell a
substantial portion of its Internet capacity. European antitrust officials
found that the combined companies would control more than half the traffic
of the Internet's "backbone" transmission network.

** Internet **

Title: www.ooops: Companies Capitalize on Typos
Source: Washington Post (A1,A12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/27/087l-052798-idx.html
Author: Linton Weeks
Issue: Internet
Description: Nobody's perfect, especially when it comes to typing in those
pesky Internet addresses. Now several companies are working to cash in on
some of our human errors. For example, you are looking for Amazon.com but
you incorrectly type in Amazom.com (with an m on the end). While you will
find yourself whisked away to a bookstore's Web site and you will be able to
conduct a book search, instead of perusing through Amazon.com's site, you
will be on a Cleveland rival outfit's site called Books.com. "How insidious!
How insincere! How ingenious!" we find ourselves saying. But there are now
companies, like Typo.Net based in Mountain View, Calif., that are making an
opportunity out of our inability to always type straight. Where we used to
find the "404 Object Not Found" page when we keyed in a mistake, TypoNet and
others will now transfer us first to some ads and then to the correct,
incorrect page in a wink. Too bad "spell check" won't help us here...
*********

Communications-related Headlines for 5/26/98

Universal Service
Proposals to Revise the Methodology for Determining
Universal Service Support (FCC)
Consumer Groups Balk at School Internet Hookup Plan (WP)

Publishing/EdTech
Sales of Textbooks Continuing to Defy Gloomy Predictions (NYT)

Campaigns
In California Politics, Web May Be Antidote to Money (CyberTimes)

Public TV Wins in High Court (B&C)

Minorities
Broadcasters Devising Diversity Plans (B&C)
EEO Rules Remain, for Now (B&C)

Television/Cable
The Neighborly Newscasts (WP)
Kids TV Crackdown (B&C)
High-Speed 'Net for Small Systems' (B&C)
Rate Ruling Effect Seen as Slight (B&C)

Radio
Justice Studies More Radio Mergers (B&C)
Lucent Presses Forward on DAB (B&C)

Jobs
Jobs Out of Reach for Detroiters Without Wheels (NYT)
The Tech Life: All Work? No, Play! (WP)

E-Commerce
It's Time for Banks to Dive Into E-Commerce, a Pioneer Says
(CyberTimes)

Mergers
Stake in Jones Intercable Being Sold To Comcast (NYT)
Hearst Is Paying $1.1 Billion For Pulitzer's Broadcast Unit (NYT)
BCI to Sell Comcast a 30% Interest In Jones Intercable for $500
Million (WSJ)

Privacy
For sale: Any data firms know about you (ChiTrib)

Antitrust
U.S. May Add Charges to Microsoft Case (WSJ)

Also at the FCC
Galaxy 4 Satellite
US West/Ameritech/Quest Agreement
Cramming
USAC

** Universal Service **

Title: Proposals to Revise the Methodology for Determining
Universal Service Support
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da980987.wp
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da980987.pdf
Issue: Universal Service
Description: "The Federal Communications Commission will hold an en banc
hearing on Monday, June 8, 1998, from 9:30 a.m. to 4:30 pm, in the
Commission meeting room, Room 856 at 1919 M. Street, N.W., Washington, D.C.
The Commission has invited the state members of the Federal-State Joint
Board on Universal Service to also preside at this en banc. At the en banc
hearing, the Commission and the state members of the Joint Board will review
certain proposals for revising the methodology for determining federal
universal service support for non-rural carriers. The Commission initially
decided in the Universal Service Order that the federal fund would provide
at least 25 percent of the total support necessary for non-rural carriers
(25/75 decision), beginning January 1, 1999. Recently, the Commission
stated in its Report to Congress on Universal Service that it would
reconsider the share of federal support before implementing the new high
cost support mechanism."

Title: Consumer Groups Balk at School Internet Hookup Plan
Source: Washington Post (D11,D12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/26/056l-052698-idx.html
Author: Mike Mills
Issue: Schools & Libraries
Description: The Consumer Federation of America, Consumers Union and groups
representing business telephone users, last week asked regulators at the FCC
to stop funding to wire schools and libraries to the Internet. The coalition
of consumer groups said in letters that long-distance telephone rates should
first be pushed downward and no new fees should be added to pay for the
program. The groups want the FCC to cut more than $1 billion annually from
"access charges" that long-distance carriers are required to pay to local
phone companies to begin and end long- distance calls. They then want the
money saved from the access-charge reductions to be applied toward wiring
schools and libraries, and lowering long-distance rates. "Once the FCC
eliminates these inappropriate charges and brings interstate access charges
down to cost, there will be plenty of money available to fully fund all
universal service programs and reduce long-distance rates substantially,"
said the letter by Mark Cooper, research director of the Consumer Federation
of America. The American Library Assoc. has urged the FCC not to delay or
reduce funding to the schools and libraries program. "Schools and libraries
should not be held hostage to other telecommunications policy disputes,"
said Anne Bryant, executive director of the National School Boards
Association. "We believe the cost to the industry for support of schools and
libraries has been balanced by reductions in access charges," wrote Larry
Irving, assistant commerce secretary for telecommunications in a letter to
the FCC. "The commission should endeavor to fund the program with no
additional costs or pass-through to the customers." In any event," Irving's
letter continues, "the cost to telecommunications carriers to fund discounts
to schools, libraries, and rural health care centers at the current demand
levels is no more than $1 per month, and therefore, under no circumstances,
should consumers be charged anymore."

** Publishing/EdTech **

Title: Sales of Textbooks Continuing to Defy Gloomy Predictions
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/financial/textbook-future.html
Author: Doreen Carvajal
Issue: Publishing/EdTech
Description: The US book market saw the strongest gains last year in
textbooks and instructional materials. Sales of elementary school books
increased 13% to $3 billion; college texts sales rose by 7.4%, to $2.7
billion. The overall US book market is $21 billion. The trend "belies
longstanding fears in the publishing industry that the printed page is
steadily losing favor to the electronic monitor." Libraries are also
purchasing more books. According to the American Library Association, more
than 85% of the almost 9,000 library systems in the US are reporting budget
increases for fiscal year '96. "In the late 1980s and early 1990s much of
the talk about education centered on the emerging technologies -- that the
book was dead and traditional publishing was out," said Patrick J. Quinn, of
Simba Information Inc., a market research firm. "And now, through all the
hype and hoopla about it, textbooks have actually started to sell at a
brisker pace."

** Campaigns **

Title: In California Politics, Web May Be Antidote to Money
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/25democracy.html
Author: Rebecca Fairly Raney
Issue: Campaigns
Description: The Democracy Network, a branch of the nonprofit Center for
Governmental Studies in Los Angeles, is planning to set up election sites in
ten states this year in partnership with the League of Women Voters and
other groups. After two years of trial and error, the group will begin
posting election material online. The main focus of the Web sites will
revolve around an online format where candidates can post their positions on
election issues. "The problem with television is that is squeezes it down to
the front-runners," said Tracy Westen, president of the Center for
Governmental Studies. "This technology has the capability of substantially
improving the dialogue over what television does."

Title: Public TV Wins in High Court
Source: Broadcasting&Cable (p34)
http://www.broadcastingcable.com/
Author: Dan Trigoboff
Issue: Campaigns
Description: "The Supreme Court held last week that state-owned public TV
stations may exclude minor political candidates from on-air debates, if the
decision is not based on the candidates' views. The case was closely watched
by politicians and broadcasters, since it appeared to pit the rights of
broadcasters to control the airwaves against the rights of fringe candidates
to air their views."

** Minorities **

Title: Broadcasters Devising Diversity Plans
Source: Broadcasting&Cable (p16)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Minorities
Description: In response to FCC Chairman Bill Kennard's call last month for
ideas on how to promote diversity in broadcasting, the National Assoc. of
Broadcasters (NAB) and individual broadcasters plan to introduce a series of
initiatives established to boost recruitment of minorities and women and to
further station ownership by those groups. The first of those programs will
be an equal employment opportunity (EEO) exchange of ideas at NAB
headquarters on June 8.

Title: EEO Rules Remain, for Now
Source: Broadcasting&Cable (p19)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Minorities
Description: Last month, a three-judge panel of the U.S. Court of Appeals in
Washington found most of the FCC's EEO policy unconstitutional. Regulators
are currently seeking a rehearing by all 11 judges at the appeals court.
While the commission pursues the appeal, the rules will stay in effect. "We
will continue to enforce them," said Mass Media Bureau Chief Roy Stewart
last week. "I'm very happy," said civil rights lawyer, David Honig, of the
FCC's decision to challenge last month's court ruling.

** Television/Cable **

Title: The Neighborly Newscasts
Source: Washington Post (C1,C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/26/044l-052698-idx.html
Author: Howard Kurtz
Issue: Local TV News
Description: A two-week examination by the WPost of the 5 pm newscasts on
local DC television stations suggests that local TV news programs have moved
into "a softer, user-friendly, market-tested phase." Howard Kurtz, writes in
this article that "for more than two decades, smiling anchors have engaged
in harmless banter. And reporters have long done live stand-ups from street
corners where crimes were committed hours earlier. But now the stations are
consciously carving out a kinder, gentler niche as the purveyor of consumer
advice and the chronicler of suburban lifestyles -- an approach very
different from the more straightforward, sometimes impersonal tone of
newspapers."

Title: Kids TV Crackdown
Source: Broadcasting&Cable (Washington Watch-p20)
http://www.broadcastingcable.com/
Author: Paige Albiniak & Chris McConnell
Issue: Television
Description: Last week the FCC's Mass Media Bureau said it will start
watching some television to ensure that stations comply with FCC limits on
commercials aired during children's programming. After a review of current
license renewal applications, regulators said that 26 percent have exceeded
the limit. "This level of noncompliance is unacceptable and must be
remedied," the bureau said in a public notice last week.

Title: High-Speed 'Net for Small Systems'
Source: Broadcasting&Cable (p46)
http://www.broadcastingcable.com/
Author: Price Colman
Issue: Cable/Internet
Description: Tele-Communications Inc. is developing a system that would use
a satellite to connect smaller systems to cable "Internet backbones" such as
( at )Home Network. TCI is hoping to ensure that its small systems can "keep
pace" in the high-speed data race. "We're working pretty hard at a strategy
for connectivity for high-speed data so that even our smallest systems can
be virtually presents at a major data hub with access to a high-speed
service," said TCI Chairman John Malone.

Title: Rate Ruling Effect Seen as Slight
Source: Broadcasting&Cable (p77)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Cable
Description: Cable companies won a court victory this past Friday against
the FCC's rate regulation rules. Time Warner and other companies had
challenged a 1996 decision that dealt with costs operators incurred between
Sept. 30, 1992 and the date that systems became subject to rate regulation.
Originally, operators were barred from recovering costs from the "gap
period," but the U.S. Court of Appeals in Washington said they should be
allowed to do so. Lawyers predict that the ruling will have little impact on
rates.

** Radio **

Title: Justice Studies More Radio Mergers
Source: Broadcasting&Cable (p19)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Radio
Description: Regulators at the Justice Dept. have decided to review up to
six radio mergers that have "raised red flags" with FCC officials. In
discussions with the Justice Dept., FCC officials highlighted several
pending mergers that would give companies control over more than half of a
local radio advertising market.

Title: Lucent Presses Forward on DAB
Source: Broadcasting&Cable (p41)
http://www.broadcastingcable.com/
Author: John Merli
Issue: Digital Radio
Description: Lucent Technologies announced that its Lucent Digital Radio
venture is working to deliver In-Band On-Channel (IBOC) systems that will
place both analog and digital signals within the existing spectrum. The new
technology will allow broadcasters to introduce digital sound to listeners
on their existing dial positions using current antennas and transmitters.

** Jobs **

Title: Jobs Out of Reach for Detroiters Without Wheels
Source: New York Times (A12)
http://www.nytimes.com/yr/mo/day/news/national/suburban-car-bereft.html
Author: Robyn Meredith
Issue: Jobs
Description: In Detroit, the unemployment rate is 7.2% -- more than double
the unemployment rate in suburbs. Detroit ranks last in public
transportation funding among the largest 20 metropolitan areas nationwide.
For low-income people in the Motor City, the price of a car may be out of
reach and a 25 minute car ride to a job in the suburbs may turn out to be a
90 minute bus ordeal. The situation makes it harder for suburban businesses
to hire entry-level workers. Bruce Katz, director of the Center on Urban and
Metropolitan Policy at the Brookings Institution, says the mismatch is
maddening because it "not only undermines the ability of people to get to
work in the morning in a timely way but undermines the ability of
corporations to hire workers."

Title: The Tech Life: All Work? No, Play!
Source: Washington Post (D11,D13)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/26/057l-052698-idx.html
Author: Stephanie Stoughton
Issue: Jobs
Description: As technology firms are beginning to offer "new forms of
lifestyle benefits" as they compete for hard-to-find computer programmers,
technicians, network designers and software engineers. Many companies are
choosing to build large, campus-style complexes that offer everything from
restaurants, hotels, stores and health clubs, to places to jog, bike and
hike. Such perks aren't just about making workers happy, they're about
"keeping them close" to the mother ship, said Robert Templin, president of
Virginia's Center for Innovative Technology. Some companies also are
offering stock options and 401(k) retirement savings plans in an effort to
keep these sought after employees on board.

** E-Commerce **

Title: It's Time for Banks to Dive Into E-Commerce, a Pioneer Says
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/26commerce.html
Author: Bjorn Kassoe Anderson
Issue: E-Commerce
Description: The banking industry could easily transform electronic commerce
into a mass phenomenon if they better understood how to sell technology,
according to one of the pioneers and top experts in the field. "Within the
next few years, we'll see applications that are so compelling for digital
consumers and merchants that eventually the light bulb will go off for the
banks," said Steve Mott, former senior vice president of electronic commerce
for MasterCard. Mott points out that at the moment most banks have the
wait-and-see strategy when it comes to e-commerce. But this may soon change
due to pressure from new commercial interests establishing themselves on the
Internet.

** Mergers **

Title: Stake in Jones Intercable Being Sold To Comcast
Source: New York Times (C3)
http://www.nytimes.com/
Issue: Cable
Description: The Comcast Corporation, which operates cable systems in
Baltimore, has purchased a 37% stake of Jones Intercable, a cable operator
whose strength is in systems surrounding Washington. Comcast will pay $500
million or more to BCE Inc for the stake. BCE sued Jones last year to stop
the company from using an Internet service run by the chairman of Jones.
Comcast is the 4th largest cable company in the country with 4.4 million
subscribers. It also owns a 15% stake in Sprint PCS and 10% of Primestar.

Title: Hearst Is Paying $1.1 Billion For Pulitzer's Broadcast Unit
Source: New York Times (C9)
http://www.nytimes.com/
Author: Allen Myerson
Issue: Mergers/Broadcasting
Description: Hearst-Argyle Television will pay $1.15 billion in stock and
assume $700 million in debt for the television and radio assets of the
Pulitzer Publishing Corporation. Pulitzer owns nine network-affiliated
television stations and five radio stations. The deal will make
Hearst-Argyle the second-largest non-network owned group -- reaching 16.5%
of the national TV audience. Myerson writes, "Prices for radio and
television groups have been climbing in recent years as these industries
have increasing consolidated. National advertisers strongly prefer dealing
with companies that can give them a large share of the national market."

Title: BCI to Sell Comcast a 30% Interest In Jones Intercable for $500 Million
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Gordon Fairclough & Leslie Cauley
Issue: Partnership
Description: Cable-television company, Comcast, announced it would acquire a
30 percent stake in Jones Intercable Inc. for $500 million from BCI Telecom
Holding Inc. of Canada. The deal would give Comcast a significant part of
Jone's "large and technologically advanced" cable system. Jones Intercable
has about one million subscribers, many located in the Washington D.C. suburbs.

** Privacy **

Title: For sale: Any data firms know about you
Source: Chicago Tribune (p.1)
http://chicago.tribune.com/news/nationworld/article/0,1051,CTT-20797,00....
Author: Frank James
Issue: Privacy
Description: Commerce Secretary William Daley will report to President
Clinton on corporate America's progress on protecting consumer information.
A senior administration official has said, "American business is not the
most pro-active animal in the world." Companies are not addressing privacy
concerns like collecting information from children. Since self-regulation
does not seem to be working, the administration may have to consider other
alternatives.

** Antitrust **

Title: U.S. May Add Charges to Microsoft Case
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John R. Wilke & David Bank
Issue: Antitrust
Description: Federal officials are considering adding a charge to its
antitrust suit against Microsoft Corp. The charge, already part of the state
suit, would be unfair pricing by Microsoft of its Office software package.
U.S. District Judge Thomas Penfield Jackson said Friday that the case will
go to trial Sept. 8. Judge Penfield also said he will consolidate the
Justice Dept.'s antitrust suit with the separate suit brought by 20 states.

** Also at the FCC: **

Chairman Kennard's Statement on the Galaxy 4 Satellite.
http://www.fcc.gov/Speeches/Kennard/Statements/stwek835.html

Chairman Kennard's Statement on US West/Ameritech/Quest Agreement.
http://www.fcc.gov/Speeches/Kennard/Statements/stwek834.html

Chairman Kennard's Statement on Industry Discussions on Cramming.
http://www.fcc.gov/Speeches/Kennard/Statements/stwek834.html

Press Statement of Commissioner Harold Furchtgott-Roth (re: USAC).
http://www.fcc.gov/Speeches/Furchtgott_Roth/Statements/sthfr826.html
*********

Communications-related Headlines for 5/22/98

In celebration of Memorial day we decided to run a 2-for-1 special today
(we didn't want you to miss us TOO much during your Monday holiday...)

Mergers/Splits
Motorola to Take 26% Stake in Teledesic (WSJ)
Yahoo! Plans to Sever Most Ties to Netscape Due to Competition (WSJ)
Sprint and Three Cable Companies Plan Public Offering of 10% of
Sprint PCS (WSJ)
Zapata Makes Surprise Bid for Search Firm (WSJ)

Competition
The Power to Link Masses? (WP)

Antitrust
Microsoft Asks Judge to Delay Hearing (WP)

Politics/Technology
Gilmore Names First Technology Secretary (WP)

** Mergers/Splits **

Title: Motorola to Take 26% Stake in Teledesic
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Quentin Hardy
Issue: Partnership
Description: Motorola Inc. announced that it will join forces with Teledesic
LLC in a move that will likely push forward the design and construction of
the $9 billion satellite-based system for high-speed data and video. "Motorola
will take a 26 percent stake in Teledesic, which will use 288 low earth-orbit
satellites to create an 'Internet in the sky,' for a combination of cash and
design technology valued at $750 million."

Title: Yahoo! Plans to Sever Most Ties to Netscape Due to Competition
Source: Wall Street Journal (B5)
http://wsj.com/
Author: WSJ Staff Reporter
Issue: Corporate Split
Description: Yahoo! Inc., the No. 1 Internet navigation service, said that it
will sever most of its ties to Netscape Communications Corp. It cites the main
reason for its decision as increasing competition between the companies to
attract users to their Web sites. Yahoo! said it will "abandon" a directory
called "Netscape Guide by Yahoo" by July of this year. "We both had other cool
things we were working on and neither of us wanted to throw more resources to
the guide, so we thought it best to discontinue it," said Jeff Mallett, Yahoo's
chief operating officer. "And in the search area, we have been gradually
weaning
ourselves off of that as we got broader distribution." Netscape officials said
they did not expect the companies relationship to change as they began to
compete
more.

Title: Sprint and Three Cable Companies Plan Public Offering of 10% of
Sprint PCS
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Leslie Cauley
Issue: Corporate Split/Wireless
Description: Sprint Corp. and its three cable partners -- Tele-Communications
Inc., Cox Communications Inc. and Comcast Corp. -- are expected to announce
next
week plans to sell their joint wireless phone service (Sprint PCS) to the
public
for as much as $1 billion, said people familiar with the issue. The offering,
about 10 percent of Sprint PCS, will signal the end of the four-year wireless
partnership between the companies.

Title: Zapata Makes Surprise Bid for Search Firm
Source: Wall Street Journal (B1,B5)
http://wsj.com/
Author: Evan Ramstad and Robert Tomsho
Issue: Anti-Merger
Description: Zapata Corp., a company co-founded by George Bush in 1953, has had
a variety of focuses over the past 40 years, ranging from oil to fish protein
and sausage casing. Recently Zapata caught Internet fever. The company
announced
that it would delete the last three letters in its name, to become Zap, and
then
"shocked and baffled" the high-tech world by offering a bid of $1.7 billion for
the Web search firm Excite Inc. to be paid in "newly issued" Zapata stock. It
only took Excite officials a few minutes to reject the "unlikely barbarian at
the Web," calling the offer so flaky that it didn't even require board
consideration. "It seemed a little fishy, but this certainly opens a can of
worms
for us," joked Brett Bullington, executive vice president at Excite, "where a
series of puns about Zapata's fish-mean business quickly began circulating."

** Competition **

Title: The Power to Link Masses?
Source: Washington Post (D1,D4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/22/085l-052298-idx.html
Author: Martha M. Hamilton
Issue: Competition
Description: In April, Starpower, a joint venture of Potomac Electric Power Co.
and phone company RCN Corp. of Princeton NJ, began offering Washington area
consumers Internet connections and local and long-distance telephone
service. The
new company could make it more difficult for local phone company Bell Atlantic
Corp. and local TV cable companies. Those companies, however, say they
welcome the
competition. By the end of 1998, Starpower hopes to have established a network
that will enable it to also offer cable and high-speed Internet connections.

** Antitrust **

Title: Microsoft Asks Judge to Delay Hearing
Source: Washington Post (D1,D4))
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/22/080l-052298-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: "Microsoft Corp. asked a federal judge yesterday to wait seven
months before convening a preliminary hearing into antitrust lawsuits files
by the
Justice Dept. and 20 state attorney's general. In a brief submitted to U.S.
District
Judge Thomas Penfield Jackson in Washington, Microsoft argued that it needs
time to
pore through the government's evidence, interview witnesses and prepare its
defense.
Government lawyers called the request a bid to stall the case so Microsoft
can sell
millions of copies of its upcoming Windows 98 software before the judge
decides the
cases' key issue of whether the software must be changed." [For the
journal's version
see: WSJ "Microsoft Requests Additional Time to Respond to Suit" (B6)]

** Politics/Technology **

Title: Gilmore Names First Technology Secretary
Source: Washington Post (B8)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/22/158l-052298-idx.html
Author: Michael D. Shear
Issue: Politics/Technology
Description: Virginia Governor James S. Gilmore yesterday named Don Upson, a
Fairfax
County business executive, the states first secretary of technology.
*********
...and we are (really) outta here...

Communications-related Headlines for 5/22/98

Universal Service
Collection Amounts for Schools and Libraries and
Rural Health Care Providers (NTIA)
FCC Researchers Find Flaw in Universal Service
Hatfield Cost Model (TelecomAM)

Telephony
Demystifying telephone bills (ChiTrib)
Ameritech Willing to Accept AT&T as Marketing Partner (TelecomAM)

Satellites
Motorola Drops Plan for Its Own Data Satellites (NYT)

Broadcast Regulation
Broadcast Views (FCC)

Mergers
$10.6 Billion Seagram Deal for Polygram (NYT)
Zapata Finds Its Internet Bid Is Not Taken Seriously (NYT)

Privacy vs. 1st Amendment
Seeking new privacy law, stars cite media excesses (ChiTrib)

** Universal Service **

Title: Collection Amounts for Schools and Libraries and
Rural Health Care Providers
Source: NTIA
http://www.ntia.doc.gov/ntiahome/fccfilings/51598cc96_45ltr.htm
Author: Larry Irving
Issue: Universal Service
Description: NTIA filed a letter in CC Docket No. 96-45 on behalf of the
Clinton Administration in response to questions raised in the Report to
Congress, dated May 8, 1998, regarding universal service support mechanisms.
"...we must proceed with the rollout of the schools and libraries program, a
crucial aspect of universal service. We believe that the American people,
through their elected representatives in Congress, understood that by
ensuring that our schools and libraries have affordable access to important
telecommunication technologies, we would be ensuring our nation's future.
All of our children, in every school in our nation, must have access to the
tools of our time. No school or child must be excluded from the benefits of
the information age because of income or geographical area." [Full text of
this letter will be posted to this listserv today]

Title: FCC Researchers Find Flaw in Universal Service Hatfield Cost Model
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: Sprint has warned the Federal Communications Commission that
the Hatfield Cost Model (HCM) may underestimate the costs of providing
universal service in rural areas. After doing some research of its own, the
FCC may agree and is asking the model's sponsors -- AT&T and MCI -- to give
their views on the seriousness of the problem and to offer suggestions for
correcting it. The problem seems to be that the HCM underestimates the
distance between customers and feeder cables in rural areas.

** Telephony **

Title: Demystifying telephone bills
Source: Chicago Tribune (Sec 3, p.1)
http://chicago.tribune.com/business/businessnews/article/0,1051,ART-8947,00
.html
Author: Jon Van
Issue: Telephone Regulation
Description: "There's a lot of confusion out there, and we've got to do
something to quell it," said Federal Communications Commission Chairman Bill
Kennard. The FCC may propose new rules to simplify customer phone bills.
Some phone companies are already getting the message from consumers and are
doing something about it. Ameritech, for example, is reformatting bills to
make it easier for customers to detect "slamming" and "cramming" abuses.

Title: Ameritech Willing to Accept AT&T as Marketing Partner
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance/Competition
Description: Ameritech has indicated that the company will accept AT&T as a
marketing partner if AT&T "is willing to match the exact terms and
conditions" that Qwest agreed to in a similar arrangement. "If AT&T is
sincerely willing to help us offer equal convenience, simplicity and value
to customers, then we call on them to match the exact terms and conditions
that Qwest already has agreed to." BellSouth says that it will study AT&T's
offer.

** Satellites **

Title: Motorola Drops Plan for Its Own Data Satellites
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/05/biztech/articles/22satellite.html
Author: Seth Schiesel
Issue: Satellite/Infrastructure
Description: Motorola has announced it will scrap its own $12.9 billion
satellite network plan to join a rival project to build an "Internet in the
Sky." Motorola will invest $750 million in Teledesic, the company founded by
Microsoft's Bill Gates and cellular phone pioneer Craig McCaw. Matra Marconi
Space, a joint venture of General Electric Company of Britain and Groupe
Lagardere of France, also announced it will partner with Teledesic. An
industry analyst said: There was a decision from both of them that there was
probably no room for two guys in the market and maybe not for one. It's the
blind leading the visibly impaired."

** Broadcast Regulation **

Title: Broadcast Views
Source: FCC
http://www.fcc.gov/Speeches/Tristani/spgt808.html
Author: Commissioner Tristani
Issue: Broadcast Regulation
Description: "I wanted to start with a question a lot of people around
Washington have been asking: why should broadcasters be treated any
differently under the First Amendment than other media voices like
newspapers? The short answer is because the Supreme Court said so. In Red
Lion, the Supreme Court said: 'Where there are substantially more
individuals who want to broadcast than there are frequencies to allocate, it
is idle to posit an unbridgeable First Amendment right to broadcast
comparable to the right of every individual to speak, write or publish.' The
Court added: 'There is no sanctuary in the First Amendment for unlimited
private censorship in a medium not open to all.' I know what a lot of you
are probably thinking. Yeah, sure, Red Lion. Hasn't that case, and the whole
scarcity rationale it relied on, been thoroughly discredited? Isn't Red Lion
just one of those Warren Court relics that would never be upheld today? If
you only looked at law reviews and the stuff coming out of Washington think
tanks, you might think so. But apparently word of Red Lion's demise hasn't
reached the only audience that matters -- the Supreme Court. In both the
1994 Turner decision and the 1997 Reno decision, the Court expressly
reaffirmed Red Lion and the scarcity rationale as justifying more intrusive
regulation of broadcasters than newspapers and other media. I don't think
the Commission should be in the business of questioning the Court's judgment."

** Mergers **

Title: $10.6 Billion Seagram Deal for Polygram
Source: New York Times (C1)
http://www.nytimes.com/yr/mo/day/news/financial/polygram-seagram.html
Author: Geraldine Fabrikant
Issue: Mergers
Description: After weeks of negotiations, the Seagram Company has agreed to
buy one of the largest music companies, Polygram, for $10.6 billion in cash
and stock. Seagram is transitioning from a beverage and spirits powerhouse
into a media giant; the company also said it would sell Tropicana Products
yesterday. After yesterday's announce transactions are completed, Seagram
will derive two-thirds of its revenues from the entertainment business. [And
to think, it all started with Bruce Willis singing about wine coolers...]

Title: Zapata Finds Its Internet Bid Is Not Taken Seriously
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/22zapata-marketp
lace.html
Author: Reed Abelson
Issue: Anti-mergers
Description: Oil-and-gas company turned fishmeal producer [we don't have to
make *all* of this up] Zapata wants into the Internet business. The company
changed its name to Zap and announced yesterday that it wanted to purchase
the Internet search engine Excite. Excite has quickly said, Thanks, but no
thanks -- even though Zap was offering $72 per share, a 20% premium over
Excite's closing price on Wednesday. "Excite is too big a fish for a
fish-oil company to swallow as a way to get into the Internet," said a rep
from an venture capital firm. "It is amusingly backward."

** Privacy vs. 1st Amendment **

Title: Seeking new privacy law, stars cite media excesses
Source: Chicago Tribune (Sec 1, p.3)
http://chicago.tribune.com
Author: Associated Press
Issue: Privacy/Journalism/First Amendment
Description: Michael J. Fox and Paul Reiser testified before the House
Judiciary Committee Thursday as the Committee wrestles with how to preserve
1st Amendment rights while protecting privacy right as well. Committee
Chairman Henry Hyde (R-IL) observed that freedom of the press "does not
confer a license to engage in criminal conduct in the interest of gathering
news." Pending legislation would bar photographers to threaten or cause
bodily injury in the pursuit of photographs or recordings. Penn State
University professor Robert Richards says the bills are overly broad and
vague and "could produce a deleterious effect on the news-gathering process."
*********
...and we are outta here. See you *Tuesday* Enjoy the holiday weekend!

Communications-related Headlines for 5/21/98

Satellites (spin)
House Votes to Prohibit Satellite Exports to China (NYT)
Millions Await Beep, but Box Remains Silent (NYT)
Satellite Failure Is Rare, And Therefore Unsettling (NYT)
Satellite Outage Felt by Millions (ChiTrib)
One Satellite Fails, and the World Goes Awry (WSJ)

Satellites/InfoTech
Satellite's Breakdown Highlights Fragility of Telecommunications
(ChiTrib)
Satellite Glitch Cuts Off Data Flow (WP)
Day's Story Was Missing a Page (WP)

Telephony
SBC Tells Senate Panel It Needs to Get Bigger to Get Better (TelecomAM)
AT&T Seeks Marketing Pact With Bells (WSJ)
AT&T Seeks Long Distance Marketing Deal With Bells (TelecomAM)

Computer Technology
Intel Eases Policy On Licensing Chip Technology (WSJ)

Merger
AOL Is in Talks to Acquire Mirabilis, Maker of Popular
Internet-Chat System (WSJ)
Arts
Summer Movies Sites Finally Exploit the Web's Multimedia Potential
(CyberTimes)

** Satellites **

Title: House Votes to Prohibit Satellite Exports to China
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/washpol/china-congress.html
Author: Eric Schmitt
Issue: Satellites
Description: In two votes May 20, the House approved a ban on the export of
American-made commercial satellites to China and the sensitive technology
embedded in them. The votes reflect the fears of both Democrats and
Republicans that President Clinton's lifting of an earlier ban allowed China
to their make nuclear weapons more accurate. The Administration criticized
the votes saying that it will bar the US satellite industry from using
low-cost Chinese launching services. The measure will now move to the Senate
where passage is unclear.

Title: Millions Await Beep, but Box Remains Silent
Source: New York Times (A1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/21pagers.html
Author: Seth Schiesel
Issue: Satellites
Title: Satellite Failure Is Rare, And Therefore Unsettling
Source: New York Times (C3)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/21pagers-satelli
tes.html
Author: Laurence Zuckerman
Title: Satellite Outage Felt by Millions
Source: Chicago Tribune (p1)
http://chicago.tribune.com/news/nationworld/article/0,1051,ART-8927,00.html
Author: Stevenson Swanson & Jim Kirk
Description: About 80% of the nation's almost 50 million pagers stopped
working after a satellite malfunction Tuesday afternoon. The problem could
take six days to fix as another satellite may have to be sent into the orbit
of the malfunctioning one.

Title: One Satellite Fails, and the World Goes Awry
Source: Wall Street Journal (B1,B9)
http://wsj.com/
Author: Frederic M. Biddle, John Lippman & Stephanie N. Mehta
Issue: Satellites
Description: When PanAmSat's Galaxy IV satellite went out of service on
Tuesday evening it affected millions of people and businesses. PanAmSat has
been working to reroute services to other satellites, but it may take several
days before the nation's paging system is back in place and up to a week
before a backup for broadcasting is set up. PanAmSat officials still do not
know what caused the failure, saying that there are no signs of sabotage or
evidence that the satellite was hit by space flotsam.

** Satellites/InfoTech **

Title: Satellite's Breakdown Highlights Fragility of Telecommunications
Source: Chicago Tribune (Sec1,p27)
http://chicago.tribune.com/news/nationworld/article/0,1051,ART-8929,00.html
Author: Frank James & Jon Van
Issue: Satellites/InfoTech
Description: The failure of the Galaxy IV satellite highlights how
susceptible the information infrastructure is too accidents, hackers, and
terrorists. "The whole infrastructure stinks" in terms of reliability, said
Peter Neumann, a scientist at SRI International's Computer Science
Laboratory. "The pager problem is again indicative of the fact that we get
totally over-dependent on our technology. We don't think about what happens
if something goes wrong. There are a lot of folks who are in trouble if
their pagers don't work this morning because that's their means of existence."

Title: Satellite Glitch Cuts Off Data Flow
Source: Washington Post (A1,A22)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/21/234l-052198-idx.html
Author: Mike Mills
Issue: Satellites/InfoTech
Description: The malfunction of PanAmSat's satellite Galaxy IV is by far the
worst outage in the 37 years since communications satellites first entered
service. The failure of the satellite has served as a reminder that as
Americans enjoy the "efficiencies and convenience of instant communications,"
they also become more vulnerable and can fall victim when the technology fails.
"We have such a dependable communications system that we often take it for
granted," said Atlanta telecommunications consultant Jeffrey Kagan. "This is
a wake-up call. There are more people using wireless services, and the
technology itself is more complex than ever. So we shouldn't be shocked when
service goes down from time to time." While contingency plans were moved into
place yesterday, the outage adds to fears that the "world's communications
infrastructure is more prone to massive failure than previously believed."

Title: Day's Story Was Missing a Page
Source: Washington Post (A23)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/21/151l-052198-idx.html
Author: Mark Leibovich & Scott Wilson
Issue: Satellites/InfoTech
Description: With the failure of PanAmSat's Galaxy IV, a reoccurring question
of modernity has once again been brought to the forefront of our minds: "Do
people control technology, or does technology control people?" As people
realized that the "little boxes on their belts and purses weren't working,
they scrambled to get messages through some other way" -- in some instances,
people actually had to talk to each other. Experts who examine the sociological
effects of technology said that the failure of Galaxy IV has provided them with
an impromptu case study. "Suddenly, we are confronted with a real-life
experiment
to test the nature of our dependency," said Chuck Darrah, chairman of the
anthropology department at San Jose State Univ., who has studied the effect of
new technology of people in Silicon Valley. "These kinds of hazards don't
seem to
be part of the story the public gets" when complex technologies are planned and
first implemented, said Rob Kling, a professor information science and
information
science and information systems at Indiana Univ. "I'm not saying people
should run
around in fear, but they should take a more considered view that we as
society are
building more complex and fragile systems."

** Telephony **

Title: SBC Tells Senate Panel It Needs to Get Bigger to Get Better
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: Appearing before the Senate Antitrust Subcommittee May 19, SBC
Chairman Edward Whitacre said that the company needs to take over Ameritech
in order to build a national and global telecommunications company. [Well,
if you put it that way...what were we worried about?] Congress does not seem
convinced. Sen Richard Durbin (D-IL) asked, "Are Ma Bell's kids coming back
home?" Senior Committee Democrat Patrick Leahy (VT) said that before the
"pieces of Ma Bell are put together again, Congress should revisit the
Telecom Act." He said Congress should ensure that the Bell companies do not
gain more control over "huge percentages of the telephone access lines of
this country through merger, but only through robust competition." Mr.
Whitacre outlined a three-step plan to make SBC a global player like AT&T
and British Telecom: 1) leveraging international assets, 2) starting
facilities-based local competition in 30 markets outside of the combined
SBC-Ameritech region and 3) linking major business customers in those
markets through a long-distance network.

Title: AT&T Seeks Marketing Pact With Bells
Source: Wall Street Journal (A3,A6)
http://wsj.com/
Author: John J. Keller
Issue: Long-Distance
Description: AT&T has invited the regional Bell telephone companies to sell
its long-distance service to their local phone customers. If the Bell companies
accept this offer, "it would mark the first time AT&T has teamed up with the
local phone monopolies it spawned after the breakup of American Telephone and
Telegraph Co. in 1984."

Title: AT&T Seeks Long Distance Marketing Deal With Bells
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Title: AT&T chief invites alliance similar to deal company opposes
Source: Chicago Tribune (Sec3,p3)
http://chicago.tribune.com
Author: Jon Van
Description: AT&T Chairman Michael Armstrong sent letters to each of the
Baby Bells asking the local telephone companies to enter marketing alliances
with the long distance giant. US West and Ameritech have entered similar
deals with Qwest Communications. In a letter faxed to Bell company chief
executives late May 19, Armstrong said that "while we have opposed those
[Qwest-Bell] agreements on legal grounds, we also would like to provide our
customers the convenience of one-stop shopping should these arrangements be
found lawful. In fact, we would like to enter a similar agreement." Mr.
Armstrong said joint marketing is "a terrific opportunity for AT&T to use
the [Bell companies] as an agent to provide long distance service in each of
their regions."

** Computer Technology **

Title: Intel Eases Policy On Licensing Chip Technology
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Dean Takahashi
Issue: Computer Technology
Description: Intel announced that it plans to license a major chip
technology to other manufacturers. "The technology is related to products
known as chip sets, which perform several tasks inside personal computers in
conjunction with the microprocessors that are Intel's biggest business." The
move helps to ease a policy that has been criticized by some competitors.

** Merger **

Title: AOL Is in Talks to Acquire Mirabilis, Maker of Popular
Internet-Chat System
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Jared Sandberg
Issue: Merger
Description: America Online Inc. is nearing an agreement with Mirabilis Ltd.,
a Tel Aviv-based company that makes a very popular Internet-based chat system
dubbed ICQ -- geek speak for "I seek you." If discussions go as planned,
executives say that AOL would acquire Mirabilis for about $300 million in a
cash-and-stock transition.

** Arts **

Title: Summer Movies Sites Finally Exploit the Web's Multimedia Potential
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/artsatlarge/21artsatlarg...
Author: Matthew Mirapaul
Issue: Arts
Description: The Web is playing its largest part ever in the promotional
campaigns for big-budget summer blockbusters. Advertisements are now routinely
listing "vanity" URLs in addition to the usual credits and critic remarks. In
its third annual survey of summer movie Web sites, CyberTimes' "arts( at )large" has
visited 20 of the promotional summer sites and found that they are finally
starting to employ the use of the Web's multimedia potential and that file size
really does matter.
*********

Communications-related Headlines for 5/20/98

Microspin: Everything Else You Wanted to Know About Microsoft
Microsoft Fight Will Be Waged On Wide Front (NYT)
Left and Right With Bill Gates (NYT)
Injunction Looms as Showdown for Microsoft (WSJ)
Netscape Seems to Have Mixed Feelings About Starring Role in
Microsoft Probe (WSJ)
Critic of Software Giant to Hear Antitrust Cases (WP)
Microsoft's Influence Unabated (WP)
...and links to much, much more

Universal Service & EdTech

Most Schools Asked for Less Than $10,000 for
Internet Links (TelecomAM)
Texas Weighs Value of Laptops vs. Textbooks (CyberTimes)

Television & Campaigns
Really Big Money Shouts in a California Contest (NYT)
Name That Candidate (ChiTrib)
Grass-Roots Organizing Tops TV Ads in AFL-CIO
Political Agenda (WP)

Advertising
Rock-Advertising Synergy (ChiTrib)
Invisible Viewers (ChiTrib)

Mergers
MCI May Reduce Internet Business (WP)

Libraries
Hacking Away at the Libraries (NYT)

Philanthropy
U.N. Gives Its First Grants From Big Ted Turner Gift (NYT)

InfoTech
Hackers and Security Experts Warn Senate Panel (CyberTimes)
Group Proposes New Way to Transfer Computer Data Over
30-Foot Distances (WSJ)
Satellite Outrage Disrupts Services For Pagers and TV (WSJ)
Errant Communications Satellite Causes Pager, TV Disruptions (WP)
Message Overload Taking Toll on Workers (WP)

** Microspin: Everything Else You Wanted to Know About Microsoft **

Title: Microsoft Fight Will Be Waged On Wide Front
Source: New York Times (A1)
http://www.nytimes.com/library/tech/98/05/biztech/articles/20microsoft.html
Author: Steve Lohr
Issue: Antitrust
Description: "We're in for a full-fledged fight now," said the Attorney
General of Connecticut. The battle between Microsoft and the Government will
include "talk show appearances, documents that cast Microsoft as an arrogant
monopolist, testimonials from distinguished academics, and scarcely veiled
threats of even further charges."

Title: Left and Right With Bill Gates
Source: New York Times (A22)
http://www.nytimes.com/yr/mo/day/editorial/
Author: NYT Editorial Staff
Issue: Antitrust
Description: Attorney General Janet Reno's decision to file an antitrust
suit against Microsoft has gained some Republican support: Sen Orrin Hatch
(Utah), Sen Trent Lott (Mississippi), and Speaker Newt Gingrich (Georgia)
have strengthened the Department of Justice's action either by approval or
just by not criticizing it. Microsoft is stepping up its campaign
contributions and lobby efforts. "The Democratic Administration is arguing
that there is an intelligent place for government oversight in cyberspace,
just as there is in the environment, the work place and the worlds of
retirement and health care. Some surprisingly powerful Republicans seem to
agree. [See also NYT (A23) "" by ]

Title: Injunction Looms as Showdown for Microsoft
Source: Wall Street Journal (B1,B6)
http://wsj.com/
Author: Margaret A. Jacobs
Issue: Antitrust
Description: The next big step in the antitrust suit against Microsoft Corp.
will be a ruling on the Justice Dept.'s "ambitious request" for a
preliminary injunction against the software company. "If the judge issues a
weak preliminary injunction, then Microsoft will have won," says antitrust
lawyer Garret Rasmussen of Washington D.C. "If the injunction isn't
aggressive enough, then the company will have several more years before a
full trial can be heard -- and that's a lifetime in the computer industry."

Title: Netscape Seems to Have Mixed Feelings About Starring Role in
Microsoft Probe
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Kara Swisher
Issue: Antitrust
Description: Netscape Communications Corp. seems to have mixed feelings
about the antitrust suits filed Monday that make it seem as if the
Internet-browser business is "a matter of life and death" for Netscape.
People familiar with the situation say that Netscape never asked the Justice
Dept. to have its browser included with Microsoft's Web software and is
surprised by the government's request. Netscape executives instead argue
that the case should be viewed more as a matter of public policy, rather
than "a small company getting help against a rival."

Title: Critic of Software Giant to Hear Antitrust Cases
Source: Washington Post (C13,C17)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/20/070l-052098-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: U.S. District Judge Thomas Penfield Jackson has been assigned
to handle the broad antitrust cases filed against Microsoft Corp. by the
Justice Dept. and a "coalition" of 20 state attorneys general. Judge Jackson
was assigned the two cases because he presided over a narrower antitrust
proceeding against the software giant brought by the Justice Dept. last fall
and related cases are usually assigned to the same judge. In that case,
Jackson sided with the Justice Dept. "ordering Microsoft in December to
provide a version of Windows 95 without its Internet "browsing" software."
Both the Justice Dept. and the states had requested that Judge Jackson
handle the two new cases. Microsoft can petition for another judge if they
so desire.

Title: Microsoft's Influence Unabated
Source: Washington Post (C13,C17)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/20/065l-052098-idx.html
Author: Elizabeth Corcoran
Issue: Antitrust
Description: Regardless of the cases brought against Microsoft Corp., people
in Silicon Valley are still wary of the software behemoth. "I don't think
you can start a company today without thinking about how Microsoft will
affect you," either by influencing what area people work in or whether they
might eventually sell their technology to Microsoft, said Chris Shipley,
editor of PC Letter, an industry newsletter based in San Mateo. Jerry
Kaplan, chief executive of the online auction company Onsale Inc. based in
Menlo Park. Kaplan said that it is difficult to assess how the government's
case against Microsoft is going to change the current scenario. "Come on!"
he said. "The historical precedent is the action against IBM -- and that
dragged on for 13 years."
Such litigation "inevitably slows down momentum a bit and casts doubt into
the minds of people," points out Paul Saffo, who heads the Institute for the
Future, a market analyst firm in Menlo Park. As competitors, "sure, we'd
all love to see Microsoft have more problems. [But] we have to step up above
our own interests," said Gordon Eubanks, chief executive of Symantec Corp.
in Cupertino. "The most important role the government can play is to ensure
the country has the [ingredients] to build the right infrastructure for the
information age."

see also:
Title: Antitrust Excess?
Source: New York Times (A23)
http://www.nytimes.com/yr/mo/day/oped/20hall.html
Author: Robert Hall, Stanford University

Title: Inside Beltway, Microsoft Sheds Its Image as Outsider
Source: New York Times (C4)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/20microsoft-lobb
y.html
Author: Leslie Wayne

Title: For Congress, Even Computer Politics Are Local
Source: New York Times (C4)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/20microsoft-c...
ess.html
Author: Neil Lewis

Title: In Seattle, Bill Gates Is Still a Hometown Hero
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/20microsoft-seat
tle.html
Author: Timothy Egan

Title: Suits are no magic cure for Netscape
Source: Chicago Tribune (Sec 3, p.1)
http://chicago.tribune.com/business/businessnews/ws/item/0,1267,8297-8298-8
860,00.html
Author: Andrew Zajac

** Universal Service & EdTech **

Title: Most Schools Asked for Less Than $10,000 for Internet Links
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The Schools and Libraries Corporation (SLC) has reported to the
FCC that 53 percent of the applications in the new "e-rate" program
requested less than $10,000 in subsidies and 70 percent less than $25,000.
The SLC also found that 14 percent of the funding requests are for less than
$1,000, 18 percent for $10,000-$25,000, 28 percent for $25,000-$100,000, and
less than 1 percent for more than $1 million. SLC CEO Ira Fishman said the
numbers "clearly show universal service is working" because "we are seeing
significant participation" from small, rural communities as well as large
urban areas.

Title: Texas Weighs Value of Laptops vs. Textbooks
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/education/20education.html
Author: Pamela Mendels
Issue: Education
Description: Chairman of the Texas State Board of Education, Jack Christie,
has proposed taking the state's billion-dollar-plus textbook budget and use
it to buy laptop computers for students instead of textbooks. Christie
pressed his case last week when he invited legislators in Austin to a
session where software and hardware makers demonstrated what they consider
to be the benefits of computer learning. The central question now being
asked by the proposal's critics is: Can laptops teach better than books?
These critics argue that a computer screen cannot adequately replace the
printed page. "Nobody wants to read long passages of text on a laptop
computer," said Gary Chapman, who focuses on technology and public policy
issues as director of The 21st Century Project at the Lyndon B. Johnson
School of Public Affairs at the Univ. of Texas in Austin. If Christie gets
his way, Texas will be spending the majority of its textbook budget
purchasing laptops for students within three years.

** Television & Campaigns **

Title: Really Big Money Shouts in a California Contest
Source: New York Times (A1)
http://www.nytimes.com/
Author: Todd Purdum
Issue: Campaign Finance Reform
Description: Al Checchi, the former co-chairman of Northwest Airlines, is
making his first bid for elected office. He is running as a Democrat for
governor in California. The primary election is June 2, but Mr. Checchi has
already spent some $30 million on his campaign -- more than any
non-Presidential candidate has ever spent on a primary and general election
combined. Mr. Checchi has already spent half of what Ross Perot spent in the
1992 Presidential race.

Title: Name That Candidate
Source: Chicago Tribune (Sec 1, p.15)
http://chicago.tribune.com/news/opinion/commentary/article/0,1051,SAV-98052
00042,00.html
Author: E.J. Dionne, Jr. (Wash Post)
Issue: Media & Politics
Description: "Television has just checked out of California's race for
governor." Want to know more -- you will not find out by watching local TV
newscasts. This race is happening in paid political ads. The present
governor's former communications director said, "The lack of news coverage
itself should be of concern, but it would not be alarming. The preponderance
of paid political advertising would be of concern, but not alarming. But the
combination, the incredible imbalance between paid advertising and news
media coverage, *is* alarming because there is no control on the accuracy of
information." Some are joking that a political rally in California is "three
people around a television set."

Title: Grass-Roots Organizing Tops TV Ads in AFL-CIO Political Agenda
Source: Washington Post (A3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/20/035l-052098-idx.html
Author: Thomas B. Edsall
Issue: Campaigns
Description: The AFL-CIO, who played a major part in the 1996 elections,
will cut back on television spending and instead place emphasis on
grass-roots campaign efforts. The union labor group will focus on issues
rather than partisan politics, spreading their word through a lot of door
knocking and telephone calling.

** Advertising **

Title: Rock-Advertising Synergy
Source: Chicago Tribune (Sec5, p.1)
http://chicago.tribune.com
Author: Mark Caro
Issue: Advertising
Description: Back in the day, the hero would climb up the pop charts fueled
by radio (or TV video) play which would, in turn, result in increased sales.
Now, a band or its music might find an audience because it provides a
soundtrack for a commercial. Record labels and advertisers alike are seeing
the benefits of including new, relatively unknown music in commercials.

Title: Invisible Viewers
Source: Chicago Tribune (Sec5, p.3)
http://chicago.tribune.com
Author: David Bauder
Issue: Television Economics/Advertising
Description: Outside of homes, no one really knows how many people are
watching television -- a strange lapse for a business dependent on knowing
how big its audience is. Television executives are pleading with Nielsen
Media Research to figure out how to measure viewers in bars, health clubs,
hotels, and other out-of-home locations. Nielsen estimates that 25.7 million
people watch TV outside their home and will figure out a way to measure
them, if someone will pay for it.

** Mergers **

Title: MCI May Reduce Internet Business
Source: Washington Post (C13,C14)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/20/072l-052098-idx.html
Author: Rajiv Chandrasekaran
Issue: Merger
Description: In an effort to ease regulators concerns that the proposed MCI
Communications Corp.- WorldCom Inc. merger would be anti-competitive, MCI is
considering selling part of its Internet business. Once the merger is
complete, the communications company would focus on WorldCom's Internet
business, which is slightly larger than MCI's.

** Libraries **

Title: Hacking Away at the Libraries
Source: New York Times (A22)
http://www.nytimes.com/yr/mo/day/editorial/
Author: NYT Editorial Staff
Issue: Libraries
Description: In 1901, Andrew Carnegie made a deal with New York City: If the
City provided land and operating expenses, Carnegie would erect 65 branch
libraries. The City is welshing on the deal by not supporting its public
libraries, letting buildings decay and cutting back on hours. Even with a $2
billion city budget surplus, Mayor Giuliani has proposed cutting back the
library system's budget by $15 million. "The Mayor's call for more private
fund-raising ignores the fact. The city needs to pay for the basics and let
donors come forth for the enhancements. To do any less is to undermine a
precious public institution."

** Philanthropy **

Title: U.N. Gives Its First Grants From Big Ted Turner Gift
Source: New York Times (A10)
http://www.nytimes.com/yr/mo/day/news/world/un-turner-grant.html
Author: Barbara Crossette
Issue: Philanthropy
Description: Media mogul Ted Turner pledged $1 billion to the United Nations
last year. In January the United Nations Foundation was established to
disperse $100 million per year over the next decade. The fund is headed by
former Colorado senator Tim Wirth. The first round of grants -- to be
announced today -- will focus on helping women, children, and victims of war
in poor countries. United Nations agencies and programs are competing for
the funds by submitting proposals.

** InfoTech **

Title: Hackers and Security Experts Warn Senate Panel
Source: New York Times (CyberTimes)
http://www.nytimes.com/
Author: Jeri Clausing
Issue: Security
Description: An elite group of seven hackers who call themselves LOpht Heavy
Industries and have names like Mudge, Space Rogue and Brian Oblivion, came
to Capitol Hill yesterday to warn Congress that computer security is so lax
that they could cut off the entire nation from the Internet in 30 minutes or
less. They also could keep the global network disabled for so long "it would
definitely take a few days for people to figure out what was going on," said
Mudge. The group told the Senate Governmental Affairs Committee that their
goal was "to raise the bar," to get companies to develop more secure
products. "The committee praised the group, all of whom hold real jobs by
day, for their efforts, and pushed for answers on what they could do to make
the country less vulnerable to terrorists attacks as the world becomes more
and more reliant on computers."

Title: Group Proposes New Way to Transfer Computer Data Over 30-Foot Distances
Source: Wall Street Journal (B12)
http://wsj.com/
Author: Dean Takahashi
Issue: Wireless
Description: A group of computer and communications giants, including Intel
Corp., IBM Corp., Nokia Oy, Telefon AB L.M. Ericsson and Toshiba Corp., are
proposing a new radio technology that would allow computer data to be
transferred over distances of about 30 feet. The new technology, called
Bluetooth, would replace the need for wires for mobile computers and other
applications. It is designed to make it easier for users to exchange data
between handheld cellular phones or computers and personal computers or
other stationary machines.

Title: Satellite Outrage Disrupts Services For Pagers and TV
Source: Wall Street Journal (A4)
http://wsj.com/
Author: Frederic M. Biddle
Issue: Satellites
Description: One of the most extensive blackouts of the digital era occurred
yesterday when a PanAmSat Corp. telecommunications satellite, called Galaxy
IV, went out-of-control. Anomalies noted in Galaxy IV earlier this week are
the most likely cause of the interrupted service to millions of pager
customers, TV stations and networks and syndicated program distributors.
PanAmSat said it was working to develop alternative plans, including
switching customers to other satellites.

Title: Errant Communications Satellite Causes Pager, TV Disruptions
Source: Washington Post (C14)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/20/169l-052098-idx.html
Author: Mike Mills
Issue: Satellites
Description: A satellite operated by Hughes Electronics Corp.s' PanAmSat
division spun out of control at about 6 p.m. Tuesday, according to PanAmSat
officials. The company has tried to maintain contact with the satellite and
was trying to restore its correct orbit late last night. "We advised out
customers that the satellite will remain out of service until Wednesday
morning at the earliest," said PanAmsat spokesman Daniel Marcus. "We're
helping them with sort-term restoration plans."

Title: Message Overload Taking Toll on Workers
Source: Washington Post (C13,C16)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/20/064l-052098-idx.html
Author: Kirstin Downey Grimsley
Issue: Lifestyle
Description: With so many time- and labor-saving devices (such as the fax,
voice-mail, email, corporate intranet, standard, cell and car phone, the
beeper and pager) available for our convenience it is no wonder that we are
beginning to feel a bit overwhelmed. A workplace study conducted by the
Gallup Organization and Calif.-based Institute for the Future found that
workers are being "bombarded by an avalanche of information" and are
starting to "cry for a respite from the intrusions." The study, released
yesterday, found that the 1,035 employees that were surveyed and observed at
work received an average of 190 messages a day, most requiring some form of
response. Employees said that they were starting their work day earlier and
staying later in an effort to keep up. While many experts believe that the
growth of information is causing people to work smarter and faster --
several academic studies have reached different conclusions when it comes to
the effect on productivity "People are treated like they are machines that
are on all the time," said economist Paula Rayman, director of the Radcliffe
Public Policy Institute that also has interviewed workers on this subject.
"All these workers wanted 'sacred time' -- time during the day with no
interruptions...You absolutely need uninterrupted time to get your work
done. If you are constantly bombarded with messages, you never get your real
work done."
*********

Communications-related Headlines for 5/19/98

Antitrust/Microsoft (Here's a taste of the many Microsoft stories today)
U.S., 20 States Sue Microsoft, Allege Abuses (WP)
Microsoft's Memos Bolster Government's Case (WSJ)
U.S. And 20 States File Suits Claiming Microsoft
Blocks Competition Over Internet (NYT)
United States v. Microsoft (NYT)
Where Fine Lines Blur (NYT)

Free Time for Candidates
Court Says Public TV Debates Can Bar Fringe Candidates (NYT)
Public Broadcasters Given Choice in Candidate Debates (WP)

Mergers
MCI Said to Be Bids for Division (NYT)
Illinois Class-Action Ratepayer Lawsuit Seeks to
Block SBC-Ameritech Merger (TelecomAM)

Jobs
Senate Votes to Increase Number of Foreigners Allowed in
US to Fill Technology Jobs (NYT)
Bridging the Digital Divide (FCC)

Convergence
Kodak and AOL Are Expected to Unveil Pact Allowing Digitized
Photos On-Line (WSJ)
Picture This: Photos Online (WP)

Crime
Gore to Unveil High-Tech Effort Against Crime (WSJ)

** Antitrust/Microsoft **
(Here's a taste of the many Microsoft stories today)

Title: U.S., 20 States Sue Microsoft, Allege Abuses
Source: Washington Post (A1,A12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/19/136l-051998-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: The suit filed against Microsoft Corp. in federal court
yesterday by the Justice Dept. and 20 state attorneys general, alleged that
the software company has "engaged in a pattern of illegal business practices
designed to protect its monopoly in personal computer operating systems and
crush its competitors." Justice Dept. antitrust chief Joel I. Klein
denounced "the barrage of illegal, anti-competitive practices that Microsoft
uses to destroy its rivals and to avoid competition on the merits."
Microsoft Chairman Bill Gates "shot back" from the company's headquarters
in Redmond, WA, saying the government cases "attack innovation" and "have
the facts wrong." [For more WPost "Antitrust" stories, check out: For Gates,
Fight May Prove Costly (A1,A11); Gates:'A Step Backwards' (A11); Orders In a
'Jihad' Of Browsers (A12); Leading Up to Microsoft (A12); Q&A/Windows on
Windows 98 (A13)]

Title: Microsoft's Memos Bolster Government's Case
Source: Wall Street Journal (A3,A12)
http://wsj.com/
Author: Bryan Gruley
Issue: Antitrust
Description: The Justice Dept. and 20 states plan to use Microsoft's own
words as a weapon against the software company. The lawsuit and accompanying
documents filed by both the Justice Dept. and state attorneys general are
full of references to Microsoft internal memos, emails, press statements and
sworn testimony "proporting to show" how Microsoft intentionally acted to
suppress direct competition between Netscape Communications Corp.'s
Navigator Browser and Microsoft's Internet Explorer. The preliminary
injunction the Justice Dept. is seeking would require Microsoft to: 1)
Include Netscape's Internet browser in Microsoft's Windows 98 software
package; 2) Stop enforcing provisions with Internet service and content
providers that "allegedly" limit the distribution of rival browsers; 3) Give
personal computer makers the flexibility to change the screen that users see
when they turn on their PCs; 4) Give PC makers "more options for installing
and removing Internet browser software" on new computers.
[To fill your daily quota of "Antitrust" and related stories, also check out
the following WSJ stories: U.S. Sues Microsoft on Antitrust Grounds
(A3,A12); Is Microsoft a New 'Public Utility'? (B1,B7); PC Makers Push Ahead
on Windows 98 (B6); Screen Control Isn't Priority Of PC Makers (B7) -- Enjoy!]

Title: U.S. And 20 States File Suits Claiming Microsoft
Blocks Competition Over Internet
Source: New York Times (A1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/19microsoft-suit
.html
Author: Joel Brinkley
Issue: Antitrust
Title: U.S. Suit takes on Microsoft
Source: Chicago Tribune (p.1)
http://chicago.tribune.com/business/businessnews/ws/item/0,1267,8297-8298-8
770,00.html
Author: Naftali Bendavid
Description: The Federal Government and 20 state Attorneys General filed two
suits against Microsoft yesterday. "The suits accuse the world's largest
software company of using its monopoly in personal computer operating
systems to win control of the Internet and software products, particularly
browsers, which are necessary for viewing and interacting with the World
Wide Web," Brinkley writes. The company's chairman Bill Gates said, "How
ironic that in the United States -- where freedom and innovation are core
values -- that these regulators are trying to punish an American company
that has worked hard and successfully to deliver on these values." The suits
ask that Microsoft end its anticompetitive practices, but neither ask for
delay in the release of Windows98 which will be available in stores on June 25.

Title: United States v. Microsoft
Source: New York Times (A24)
http://www.nytimes.com/yr/mo/day/editorial/18tue1.html
Author: NYT Editorial Staff
Issue: Antitrust
Description: An editorial in support of the antitrust suits. [For the list
of NYT antitrust stories see http://www.nytimes.com/yr/mo/day/business/]

Title: Where Fine Lines Blur
Source: New York Times (A1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/19microsoft-just
ice.html
Author: Steve Lohr
Issue: Antitrust
Title: Suits make unusual demand
Source: Chicago Tribune (Sec 3, p.1)
http://chicago.tribune.com/textversion/article/0,1492,ART-8809,00.html
Author: Andrew Zajac
Description: Yesterday, the Government described its antitrust suit against
Microsoft in classic terms: protecting consumer choice and economic from the
assault of a modern monopolist. The Government is seeing if antitrust
enforcement can be swiftly and "surgically" applied in the digital age.

** Free Time for Candidates **

Title: Court Says Public TV Debates Can Bar Fringe Candidates
Source: New York Times (A16)
http://www.nytimes.com/
Author: Linda Greenhouse
Title: Court backs public TV's news discretion
Source: Chicago Tribune (Sec 1, p.6)
http://chicago.tribune.com/textversion/article/0,1492,SAV-9805190074,00....
Author: Glen Elsasser
Issue: Free Time for Candidates
Description: The Supreme Court ruled that Government-owned television
stations may exercise editorial control and exclude candidates who have
little chance to win from debates [and who has a chance to win, if even
public TV will not let them be part of a debate?]. The Court ruled that
candidates may not, however, be excluded because of their views. A candidate
debate is a "nonpublic forum," said Justice Anthony Kennedy, and it is
subject to reasonable restrictions. Strict rules protecting speakers' access
to a public forum -- like a park or a street corner -- "should not be
extended in a mechanical way to the very different context of public
television broadcasting." In the dissenting opinion Justice John Paul
Stevens writes that the case involved "the right of a state-owned network to
regulate speech that plays a central role in democratic government." Because
the station is state-owned, "deference to its interest in making ad hoc
decisions about the political content of its programs necessarily increases
the risk of government censorship and propaganda in a way that protection of
a privately owned broadcasters does not."

Title: Public Broadcasters Given Choice in Candidate Debates
Source: Washington Post (A2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/19/023l-051998-idx.html
Author: Joan Biskupic
Issue: Free Time for Candidates
Description: The Supreme Court ruled Monday that public television stations
have the right to choose which political candidates appear on its broadcast
debates. The 6 to 3 decision could affect elections around the country since
independent candidates usually tend to rely on public television as their
best opportunity for reaching and gaining crucial name recognition with
voters. The case was considered to be an important test of First Amendment
rights because it offered a "striking conflict' between the free speech
rights of candidates, who fear being excluded if they hold unpopular views,
and broadcasters, who want to have control over what their stations air.
"Were it faced with the prospect of cacophony, on the one hand, and First
Amendment liability on the other, a public television broadcaster might
choose not to air the candidates' views at all," Justice Anthony M. Kennedy
wrote for the court. He said that would "diminish the free flow of
information and ideas" and lead to a policy that "does not promote speech
but represses it."

** Mergers **

Title: MCI Said to Be Bids for Division
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/05/biztech/articles/19mci-backbon...
Author: Seth Schiesel
Issue: Internet/Ownership/Merger
Description: In an attempt to placate regulators who are considering the
WorldCom-MCI merger, MCI is offering its fast-growing Internet business. The
unit could bring in as much as $500 million. AT&T and Sprint have not been
asked for offers, bidders could include British Telecom, IXC Communications,
the Williams Companies, and GTE. There has been concern that the combined
WorldCom-MCI would dominate the Internet "backbone" business.

Title: Illinois Class-Action Ratepayer Lawsuit Seeks to
Block SBC-Ameritech Merger
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: The South Austin Coalition Community Council, Walter Ryan Jr.,
Theodore Chabraja, and Ronald Saltz -- represented by Chicago attorney
Clint Krislov of Krislov & Associates -- have filed suit Docket 98 C 3014 in
the U.S. District Court for the Northern District of Illinois in an attempt
to block the merger of SBC and Ameritech. They contend that the proposed
merger would eliminate any chance for real competition in the five Ameritech
states.

** Jobs **

Title: Senate Votes to Increase Number of Foreigners Allowed in
US to Fill Technology Jobs
Source: New York Times (C7)
http://www.nytimes.com/library/tech/yr/mo/cyber/articles/19visa.html
Author: Lizette Alvarez
Issue: Jobs
Description: By a vote of 78 to 20, the Senate passed a bill that would
allow more foreigners come to the US to fill short-term, computer
programming jobs. Sen Spencer Abraham (R-MI) sponsored the bill: "We need to
be able to attract and find and bring to this country the highest skilled
workers we can to fill these jobs, until we can find workers in our country
to fill them." Labor Secretary Alexis Herman said she would recommend that
President Clinton veto the bill if it passes in the House. Sec Herman said
the bill favors foreign workers over Americans.

Title: Bridging the Digital Divide
Source: FCC
http://www.fcc.gov/Speeches/Kennard/spwek815.html
Author: Chairman Bill Kennard
Issue: Jobs/Minorities
Description: Chairman Kennard's Speech "Bridging the Digital Divide" to the
NAACP Board of Trustees in Baltimore, MD. "Skilled labor today requires the
ability to use computers and telecommunications. Telecommunications is now
14% of the economy -- and growing. The United States will need 1.3 million
new workers in information technology over the next eight years. We're going
to need 95,000 new computer scientists, analysts and programmers each year.
How do we make sure the Information Highway has on-ramps and off-ramps into
every neighborhood? How do we avoid creating a country of information haves
and have-nots? How do we make sure this revolution in communications helps
people not just in Montgomery County but also in downtown Baltimore?
Because, let's face it. That's not happening right now. Not when 78% of
schools in affluent communities have Internet access -- but only half the
schools in low-income areas have access. Not when the percentage of white
children with home computers is triple the percentage of black and Latino
kids. This is what I call the digital divide. If we can't bridge that
digital divide, it will separate Americans when they most need to be brought
together. Conquering the digital divide is one of our most compelling civil
rights issues for the twenty-first century."

** Convergence **

Title: Kodak and AOL Are Expected to Unveil Pact Allowing Digitized
Photos On-Line
Source: Wall Street Journal (B16)
http://wsj.com/
Author: Jared Sandberg & Laura Johannes
Issue: Convergence
Description: Eastman Kodak Co. and America Online Inc. are planning to
announce an agreement today that would allow AOL subscribers who submit film
to one of Kodak's 30,000 retail processors to receive digitized versions of
their photographs via their on-line accounts. The service to be called
"You've Got Pictures!" is expected to start this fall. It is part of Kodak's
continuing effort to "stem the erosion" of its more traditional film
business into digital-based alternatives.

Title: Picture This: Photos Online
Source: Washington Post (C3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/19/108l-051998-idx.html
Author: Mike Mills
Issue: Corporate Alliance
Description: "Betting that a picture is worth a thousand e-mail messages,"
Eastman Kodak Co. and America Online Inc. are expected to announce an
alliance today that will allow people to share photographs online. Next to
the familiar "You've got mail" sign on AOL's opening screen will be a new
box titled "You've got pictures." The new box will alert users to electronic
copies of photographs developed from film dropped off at almost any
photo-finishing retailer a couple of days before. Trading photos this way is
"going to be equal to, or more popular than email," said Barry Schuler,
president of AOL Interactive Services. "Pictures are such a pervasive part
of our everyday life. We are continually looking for more things that people
do that could be done more conveniently and better online." The service
would cost consumers an additional $5 or $6 to have the photos turned into
e-mail and sent to them.

** Crime **

Title: Gore to Unveil High-Tech Effort Against Crime
Source: Wall Street Journal (B16)
http://wsj.com/
Author: John Simons
Issue: Technology Use
Description: Vice President Al Gore is expected to announce a White House
initiative today to strengthen federal law enforcement. Part of this effort
includes arming agents with high-technology gadgets, such as software used
to track cellular-telephone fraud and on-line intellectual property theft,
and hand-held geographic positioning devices. "This new partnership will
help law enforcement across the country deploy the cutting-edge technologies
of our national labs to fight drugs, violent crime, white-collar crime and
terrorism," Vice President Gore said yesterday. "With their landmark
agreement, we will be able to fight 21st century crime with 21st century
crime-fighting tools."
*********

Communications-related Headlines for 5/18/98

Internet
Online Debate Includes Doubts About Getting
Everyone Online (CyberTimes)
New Plan for Junk E-Mail Is Dividing Internet Camps (NYT)
Measures to Rid Cyberspace of 'Spam' Run Into Snags (WSJ)
Alternative doorways to the Internet are popping up
in the spirit of free-flowing information (NYT)
IBM Is Close to Deal On Phone Service Over the Internet (NYT)
Digital Media Content for Children and Teens (NTIA)

Antitrust/Microsoft
Antitrust Talks Founder On Microsoft's 'Desktop' (NYT)
Microsoft Faces Historic Antitrust Suits (WSJ)
Failure of Talks Opens A Window on Microsoft (WP)
Microsoft Is in talks to Buy 20% Stake In RoadRunner for About
$400 Million (WSJ)

Mergers
SBC-Ameritech Merger Needs Three States' Approval (TelecomAM)
Simon & Schuster In Sale To British (NYT)

Telephony
Satellite Launch Globally Links Wireless Phones (WP)

Minorities
Times Mirror Weighs a By-the-Numbers Approach to
Expanding Coverage of Minorities (NYT)
When Revenues Don't Match Ratings (NYT)
EEOnly Sparingly Invoked (B&C)
As Personal Income Grows, So Does Listening (B&C)

Cable
Tauzin Wants to Boost Cable Choices (B&C)
Anti-Regulation Report (B&C)
ZDTV Logs On (B&C)

Journalism
Seeking Dramatic Footage No Matter What the Cost (NYT)
Magazines Bowing to Demands for Star Treatment (NYT)

Arts
Arts Education, for a Week (NYT)

** Internet **

Title: Online Debate Includes Doubts About Getting Everyone Online
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/18email.html
Author: Rebecca Fairly Raney
Issue: Universal Service/Internet
Description: The Markle Foundation's online conference on the possibilities
of universal email sparked lively discussion about a concept that "has
inspired gushing idealism from people who work with computers and sharp
criticism from people who work with the poor." The profile of the conference
was raised by the participation of Vice President Al Gore (among others).
"One of the most important goals that President Clinton and I have set for
this country," Vice President Gore wrote, "is to give every child in America
access to high quality educational technology by the dawn of the new century
and to make sure that every person in America -- regardless of race, income
or where they live -- will be able to participate in and benefit from the
Information Revolution we are currently experiencing." See the E-Mail for
All project at http://www.iaginteractive.com/emfa/ [See VP Gore's essay
http://www.ntia.doc.gov/ntiahome/speeches/EMFAVEEP.htm. See contribution
by NTIA's Larry Irving http://www.ntia.doc.gov/ntiahome/speeches/EMFA_t2e.htm]

Title: New Plan for Junk E-Mail Is Dividing Internet Camps
Source: New York Times (C4)
http://www.nytimes.com/
Author: Jeri Clausing
Issue: Internet
Description: An amendment to the "slamming" bill that passed in the Senate
last week addresses the issue of bulk email -- a practice called spamming --
on the Internet. The provision requires that all unsolicited commercial
E-mail contain the actual name, postal address, E-mail address and phone
number of the sender. Bulk E-mailers would also have to honor requests to be
removed from mailing lists. The Federal Trade Commission would be given
authority to enforce the law and impose civil fines. The language was a
compromise between Sens Robert Torricelli (D-NJ) and Frank Murkowski
(R-Alaska); they are now working with Rep Billy Tauzin (R-LA) on a similar
bill pending in the House.

Title: Measures to Rid Cyberspace of 'Spam' Run Into Snags
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Rebecca Quick
Issue: Email/Spam
Description: Lawmakers across the U.S. are trying to put a lid on "spam."
but it looks unlikely that any law will be able to stop this annoying type
of Internet junk mail. Even if recent attempts by the Senate and House to
control spam are put into law, bans on unsolicited email could get stuck in
First Amendment issues. U.S. laws can't regulate a global medium, spammers
can always relocate offshore, and the sophisticated technology that "drives
the spamming" makes enforcement even more difficult.

Title: Alternative doorways to the Internet are popping up
in the spirit of free-flowing information
Source: New York Times (C5)
http://www.nytimes.com/
Author: Tom Watson
Issue: Internet
Description: The Web's most popular sites are the ones that help you find
what you are looking for -- i.e. Yahoo, Lycos, Excite and InfoSeek. But
these sites have shifted their plans and are now trying to keep visitors at
their sites by offering new services. So new search searches are rising.
Alexa is software that shows an additional bar below you Web browser that
points you to sites similar to the one you are viewing. Nerve
http://www.nervemag.com, Disinformation http://www.disinfo.com, and John
Skilton's Baseball Links http://www.baseball-links.com are sites that
provide directories of similar sites. The phenomenon of the Internet, Mr.
Watson writes, is that it is "a medium of creators as much as it is a medium
of consumers."

Title: IBM Is Close to Deal On Phone Service Over the Internet
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/18phones.html
Author: Seth Schiesel
Issue: Internet/Telephony
Description: IBM and the IDT Corporation have entered an agreement that will
promote the use of the Internet to make phone calls. IBM will include IDT's
Net2Phone software with IBM's basic Internet access kit. The software allows
users to place long distance calls to normal phones using their computers
equipped with a microphone.

Title: Digital Media Content for Children and Teens
Source: NTIA
http://www.ntia.doc.gov/ntiahome/press/contsum.htm
Issue: Children
Description: A conference on Digital Media Content for Children and Teens
will be held June 11-12 in Los Angeles. The conference is hosted by the
Clinton Administration and the EC2 at the University of Southern California
Annenberg Center for Communication. This is the third conference in a series
sponsored by the Clinton Administration: the first was held in
December of 1997 and focused on safety issues for children on the Internet,
the second was held in February and focused on access to the Internet for
all Americans.

** Antitrust/Microsoft **

Title: Antitrust Talks Founder On Microsoft's 'Desktop'
Source: New York Times (A1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/18microsoft.html
Author: Steve Lohr & Joel Brinkley
Issue: Antitrust
Description: Talks between software giant Microsoft on one side and the
Department of Justice a number of states' Attorneys General on the other
broke down over the weekend. The DoJ and the Attorneys General are expected
to file a suit today against Microsoft accusing the company of trying to
extend its monopoly of desktop software to include its Internet browser and
Internet commerce. Windows98 is expected to be available in stores by June 25.

Title: Microsoft Faces Historic Antitrust Suits
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John R. Wilke & David Bank
Issue: Antitrust
Description: The Justice Dept. and 20 states will file historic anti-trust
suits against Microsoft Corp. today as they seek to give personal-computer
operators "broad new latitude" in adapting the company's Windows software.
The two lawsuits will accuse the software company of illegally protecting a
monopoly in computer operating systems. The Justice Dept. blames the
breakdown in settlement talks this weekend on Microsoft Chairman Bill Gates'
decision to withdraw key concessions affecting Microsoft's contracts with PC
makers.

Title: Failure of Talks Opens A Window on Microsoft
Source: Washington Post (A1,A10)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/18/072l-051898-idx.html
Author: Elizabeth Corcoran & Rajiv Chandrasekaran
Issue: Antitrust
Description: Settlement talks between the Justice Dept. and Microsoft Corp.
dissolved over the weekend, leading to a courtroom battle that will focus on
what people will see when the turn on their computers. The Justice Dept.
believes that by providing more choices for what users see on the initial
screen of Microsoft's Windows software is the best way to loosen what
regulators consider to be the computer giant's "stranglehold" on personal
computers. On the other hand, Microsoft contends that such a demand amounts
to the federal government dictating what the company's products should or
shouldn't look like. "What the government is asking would significantly
hamper us from competing through innovation and would put everything we've
worked for and built for the last 23 years at risk," said Microsoft Chairman
Bill Gates in a statement. The negotiations and the way they "foundered" may
be the "clearest guide" to what we can expect in the future, as the Justice
Dept. and the state attorneys general work to write what amounts to new
antitrust regulations for the digital age.

Title: Microsoft Is in talks to Buy 20% Stake In RoadRunner for About
$400 Million
Source: Wall Street Journal (B12)
http://wsj.com/
Author: Leslie Cauley
Issue: Partnership
Description: Microsoft Corp. will possibly invest about $400 million for a
20 percent stake in RoadRunner, Time Warner Inc.'s high-speed Internet
service. RoadRunner, which is in the process of merging with MediaOne
Express, U.S. West Media Group's high-speed Internet service, had been close
to striking a similar deal with Oracle Corp and Intel Corp last week. This
possible move apparently "rattled" Microsoft enough that it came forward
with a significantly higher last-minute bid than the one offered by Oracle
and Intel. Spokespeople for all parties involved declined comment. Talks
like these are pushed forward and gain urgency as cable-TV companies
continue to upgrade their networks for digital services.

** Mergers **

Title: SBC-Ameritech Merger Needs Three States' Approval
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: The proposed merger of SBC and Ameritech will need regulatory
approval at the federal level as well as by the state commissions of
Illinois, Indiana and Ohio. "Ameritech won't have a walk in the park in any
of the states" that must approve the merger, predicted Illinois Commerce
Commission Chairman Dan Miller.

Title: Simon & Schuster In Sale To British
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/financial/simonschuster-sale.html
Author: Geraldine Fabrikant & Allen Myerson
Issue: Publishing
Description: Britain's largest publisher, Pearson PLC, has agreed to
purchase Simon & Schuster from Viacom for $4.6 billion. Pearson already owns
Penguin and is adding S&S's education division for $3.6 billion. Hicks,
Muse, Tata & Furst, a Dallas investment firm, will purchase the reference,
business and professional divisions of S&S for $1 billion.

** Telephony **

Title: Satellite Launch Globally Links Wireless Phones
Source: Washington Post (A1,A8)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/18/068l-051898-idx.html
Author: Mike Mills
Issue: Wireless
Description: The final members of the 66-satellite "constellation" now
orbiting 421 miles above earth were launched in Calif. yesterday. The
completion of the launches makes it now possible for people to send and
receive electronic messages or telephone calls from any point on the earth's
surface using pocket-sized pagers and hand-held phones.

** Minorities **

Title: Times Mirror Weighs a By-the-Numbers Approach to
Expanding Coverage of Minorities
Source: New York Times (C6)
http://www.nytimes.com/yr/mo/day/news/financial/latimes-media.html
Author: Felicity Barringer
Issue: Minorities/Newspapers
Description: A recent exercise at The Los Angeles Times found that coverage
of women and minorities does not reflect "to the degree that it should and
must, the diversity of the community that we're both reporting on and want
to be read by," said the chief executive at the Times Mirror and the
publisher of the LA Times, Mark Willes. To improve coverage of women and
minorities, Mr. Willes is suggesting that the company use quantitative
models to see if the paper's coverage reflects community demographics.

Title: When Revenues Don't Match Ratings
Source: New York Times (C7)
http://www.nytimes.com/
Author: Terry Pristin
Issue: Minorities/Radio
Description: Highly-rated radio stations that have primarily black and
Hispanic audiences do not bring in the ad dollars that other stations do.
The disparity is blamed on a bias by advertisers. "Your listeners don't buy
our cars," a luxury-car maker told a Chicago radio executive. "They steal
them." Rev Al Sharpton is threatening to boycott companies that appear
biased against stations with these audiences.

Title: EEOnly Sparingly Invoked
Source: Broadcasting&Cable (p18/Washington Watch)
http://www.broadcastingcable.com/
Author: Chris McConnell & Paige Albiniak
Issue: Minorities
Description: The Minority Media Telecommunications Council released a study
last week that maintains regulators have only "sparingly" applied equal
employment opportunity rules. "Since the EEO rule was adopted in 1969, there
have been approximately 75,000 broadcast license renewals and at least
3,000,000 hiring decisions -- yet there has not yet been one 'reverse
discrimination' complaint," the council's study says. The study focused on
EEO enforcement between 1994 and 1997. Last month a court struck down most
of the EEO rules as unconstitutional. The FCC is expected to challenge last
month's decision, although it has not yet committed to do so.

Title: As Personal Income Grows, So Does Listening
Source: Broadcasting&Cable (p42)
http://www.broadcastingcable.com/
Author: John Meril
Issue: Radio
Description: A new study from Interep has found that a higher percentage of
affluent Americans, those earning $100,000 or more, than the overall
population listen to the radio. This group, which makes up approximately 9
percent of the adult population, listens to radio in an average week 6
percent above the norm for all adults. Conversely, this group of affluent
consumers are not heavy users of television.

** Cable **

Title: Tauzin Wants to Boost Cable Choices
Source: Broadcasting&Cable (p19)
http://www.broadcastingcable.com/
Author: Paige Albinaik
Issue: Cable Regulation
Description: Rep. Billy Tauzin (R-LA), chairman of the House
Telecommunications Subcommittee, is planning to unveil a bill in June that
would increase cable competition, lower cable rates and increase programming
choices in areas where cable is the only multichannel video service that
offers local signals. "Our plan is to make sure that where cable is the sole
provider of service, consumers still have choices," said Rep. Tauzin. "The
biggest complaint we hear about cable is literally that [consumers] are
forced to buy programming they don't want in order to get programming they
do want. And when cable is the only provider, that is simply unacceptable."

Title: Anti-Regulation Report
Source: Broadcasting&Cable (p18/Washington Watch)
http://www.broadcastingcable.com/
Author: Chris McConnell & Paige Albiniak
Issue: Cable Regulation
Description: In a policy-related report issued last week, the Hudson
Institute maintains that less cable regulation is good for the industry's
consumers. The study written by Hudson fellow Thomas Duesterberg and
telecommunications lawyer Peter Pitsch, says that rate regulations provide
little or no benefit to the consumer "and in fact harmed consumers by
inducing lower quality of service." The authors also assert that periods of
deregulation have led to better service and greater choice. The study claims
that DBS and over-the air TV "provide substantial and growing competition
for cable television."

Title: ZDTV Logs On
Source: Broadcasting&Cable (p52)
http://www.broadcastingcable.com/
Author: Donna Petrozzello
Issue: Cable/WebTV
Description: ZDTV, Ziff Davis Inc. launched its computer-oriented cable
network, ZDTV, and its companion Website www.zdtv.com last week. ZDTV
President, Larry Wangberg, is trying to be flexible by launching the channel
to operators for either analog or digital distribution. Ziff Davis and
Wangberg are seeking to sell the channel as a "true interactive service that
integrates cable programming with a real-time online component."

** Journalism **

Title: Seeking Dramatic Footage No Matter What the Cost
Source: New York Times (C1)
http://www.nytimes.com/yr/mo/day/news/financial/reckless-media.html
Author: Felicity Barringer
Issue: Journalism/Television
Description: Competition in the video news footage market are making it
increasingly tempting crews to ignore ethical distinctions. News crews are
also risking their lives as they try to get footage from "unstable hot
spots." As news organizations try to cut back on the number of services they
use, the three leading video news agencies are vying for market dominance.

Title: Magazines Bowing to Demands for Star Treatment
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/financial/celebs-control.html
Author: Robin Pogrebin
Issue: Magazines/Journalism
Description: Celebrities are gaining more and more control over how
magazines present them. The increasingly competitive magazine market is
increasing pressure to have star power on the cover, but some editors think
it is getting out of control. "The balance of power has shifted from a time
when movie stars needed magazines to vice versa. There are certain unwritten
things that were absolutely verboten -- and those keep seeming to be chipped
away at," said the editor of Details.

** Arts **

Title: Arts Education, for a Week
Source: New York Times (A22)
http://www.nytimes.com/yr/mo/day/editorial/18mon3.html
Author: NYT Editorial Staff
Issue: Arts
Description: Arts Education Week starts today in the New York City public
schools. Students have been invited to the New York Philharmonic, the Dance
Theater of Harlem and to display their own work at a gallery. "It is
heartening that some of the city's most talented adults are sharing their
craft and enthusiasm with New York's 1.1 million public school students.
Now, if only the arts could return to the schools for a lasting engagement."
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