May 1998

Mergers
FCC head: No ring of certainty for deal (ChiTrib)
In Phoneland, It Gets Lonely At the Middle (NYT)
Rivals say merger is windfall (ChiTrib)

Universal Service
Limits on U.S. Wiring Plan Worry Schools (CyberTimes)

Antitrust
Appeals Court Favors Microsoft (WP)
Antitrust Action Against Microsoft Is Called Imminent (NYT)
US Sues MCI and News Corp. on Primestar (NYT)
U.S. Sues To Block Satellite TV Merger (WP)

Legislation
Senate Backs Halt to Phone Service Switching (NYT)
Slamming Bill Passes Senate (WP)
New Encryption Legislation Billed as Compromise (CyberTimes)

Advertising
An anti-award ceremony that seeks to bury Madison
Avenue, not to praise it (NYT)

Free Speech
Reasserting freedom of the press (ChiTrib)

Telecommuting
Families, Communities Can Benefit From Rise in
Home-Based Work (WSJ)

Television
Pitcher may help Cubs fans catch more games (ChiTrib)

** Mergers **

Title: FCC head: No ring of certainty for deal
Source: Chicago Tribune (p.1)
http://chicago.tribune.com/business/businessnews/article/0,1051,ART-8485,00
.html
Author: Tim Jones & Frank James
Issue: Mergers
Description: Federal Communications Commission Chairman Bill Kennard said
SBC and Ameritech will have "a high burden" to prove their proposed merger
is in the best interest of consumers. Just because the FCC has approved the
SBC-PacTel and NYNEX-Bell Atlantic mergers, don't expect easy sailing for
the latest proposal. "Anyone who says that hasn't carefully read the
commission's decision," Chairman Kennard said. "If you look at the order
which approved, with conditions, the Bell Atlantic-NYNEX merger, the
commission was careful to say that the decision should not be read to
approve future (Baby Bell) mergers. In fact, the decision said quite the
opposite, that the commission didn't contemplate further mergers between" RBOCs.

Title: In Phoneland, It Gets Lonely At the Middle
Source: New York Times (C1)
http://www.nytimes.com/yr/mo/day/news/financial/phone-assess.html
Author: Seth Schiessel
Issue: Mergers
Description: Ameritech Chairman Richard Notebaert looked into the future and
decided that a company with 20 million customers, a market value of $50
billion, revenues of $16 billion and profits of $2.3 billion per year just
wasn't big enough. The motto in today's telecommunications industry seems to
be: Go global or go home. Even though Ameritech is a strong company with
good management, and produces value for its shareholders, the Midwestern
local phone company feel victim to institutional shareholders that demand
long-term plans for strong growth. An industry consultant said: "This
rebuilds the natural scale of this industry...Like airlines should be big
and global to work, so should phone companies."

Title: Rivals say merger is windfall
Source: Chicago Tribune (Sec 3, p.1)
http://chicago.tribune.com/business/businessnews/article/0,1051,SAV-9805130
117,00.html
Author: Jon Van
Issue: Mergers
Description: Workers at NextLink Illinois, a small local phone company, are
happy to here that Ameritech wants to merge with SBC. "We don't try to
attract customers by offering better technology or lower prices. We attract
them by offering service." The small and medium size businesses that
NextLink Illinois targets appreciate a smaller company that will pay more
attention to them. Word that Ameritech is getting bigger and will be run by
a company based in Texas may mean more customers for NextLink.

** Universal Service **

Title: Limits on U.S. Wiring Plan Worry Schools
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/education/13education.html
Author: Pamela Mendels
Issue: Universal Service/E-Rate
Description: Many educators that were counting on federal financing to
subsidize telecommunications services are now concerned that their schools
will receive less money due to funding cut-backs in the e-rate program. In a
report to Congress last Friday, the FCC announced that the e-rate program
could only provide $1.67 billion in subsides as opposed to the initial
amount of $2.25 billion. "Any reduction is really going to make it difficult
for us," said Denise M. Funfsinn, a teacher in rural Illinois that had been
looking forward to a major wiring project this summer that would have
connected the school's classrooms to the Internet. "I feel really cynical.
Once again, the government and business are saying 'Education is important
and we are going to help schools.' And then they turn around to say they are
not going to fulfill what they said they would." The FCC is now seeking
comment on whether they should raise additional money or if the reduced fees
should stand. If the FCC moves to raise additional money, it could result in
increased customer phone bills.

** Antitrust **

Title: Appeals Court Favors Microsoft
Source: Washington Post (A1,A12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/13/138l-051398-idx.html
Author: Rajiv Chandrasekaran & Elizabeth Corcoran
Issue: Antitrust
Description: A federal appeals court ruled yesterday that Microsoft's
Windows 98 operating software is exempt from restrictions placed on an
earlier version of Windows. This ruling deprives the Justice Dept. of a
"potentially" important weapon in its antitrust case against the software
giant. It also means that if the Justice Dept. wants to block the scheduled
release of Windows 98 it will have to file a separate lawsuit and not rely
on the initial injunction against Windows 95. [See also Chicago Tribune, Sec
3, p.1 "Windows decision sets up new fight" by Andrew Zajac
http://chicago.tribune.com/business/businessnews/article/0,1051,SAV-9805130
122,00.html]

Title: Antitrust Action Against Microsoft Is Called Imminent
Source: New York Times (A1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/13microsoft.html
Author: Joel Brinkley
Issue: Antitrust
Description: Perhaps as early as Thursday, the Federal Government and
Attorneys General from at least 12 states plan to file new, broader
antitrust suits against software giant Microsoft. Windows98 is set to be
released in three days, but the legal action may delay shipping of the new
operating system and could hamper Microsoft's ability to add new features to
future generations of the product. The new round of suits are said to be
aimed at prohibiting Microsoft from requiring that computer manufacturers
ship their machines with MS's web browser already installed and from
requiring the manufacturers to set up machines so MS's default desktop comes
up when the machine is started.

Title: US Sues MCI and News Corp. on Primestar
Source: New York Times (C7)
http://www.nytimes.com/yr/mo/day/news/financial/critics-ad-column.html
Issue: Antitrust
Description: The Justice Department filed a civil antitrust suit to block
MCI's and Newscorp's $1.1 billion plan to sell satellite assets to
Primestar, owned by the nation's largest cable television companies. "Direct
Broadcast Satellite [DBS] presents the first real threat to the cable
monopoly," said DoJ's Joel Klein. "In most cases, we have a choice of only
one cable company and we are seeing constantly rising prices. Unless this
acquisition is blocked, consumers will be denied the benefits of competition
-- lower price, more innovation, and better services and quality." Cable
television has 67 million oh-so-happy subscribers; DBS has 5 million. [See
also Chicago Tribune, Sec 3, p.1, "US opposes satellite TV deal" by Naftali
Bendavid
http://chicago.tribune.com/business/businessnews/article/0,1051,SAV-9805130
118,00.html]

Title: U.S. Sues To Block Satellite TV Merger
Source: Washington Post (C9,C12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/13/059l-051398-idx.html
Author: Paul Farhi
Issue: Antitrust
Description: Alleging violations of antitrust law, the Justice Dept. filed
suit yesterday to block plans by MCI Communications Corp. and Rupert
Murdoch's News Corp. to merge their satellite TV company with one owned by
major cable TV companies. "Rather than compete, [the companies] decided to
merge. That's bad for competition and bad for consumers," said Joel Klein,
the Justice Dept.'s top antitrust official at a news conference yesterday.
Klein added: "It's clear as a matter of logic and fact that one group has no
interest in eroding cable's monopoly in the U.S., and that is the cable
industry."

** Legislation **

Title: Senate Backs Halt to Phone Service Switching
Source: New York Times (A18)
http://www.nytimes.com/yr/mo/day/news/washpol/senate-phones.html
Author: Allison Mitchell
Issue: Telephone Regulation
Description: In a 99-0 vote, the Senate approved a bill that authorizes
stiff fines and penalties for the practice know as "slamming." The vote gave
senators on both sides of the aisle a popular consumer vote to campaign on
in an election year. [I stopped the slam, is the catchy motto for one
senator seeking reelection.] Slamming is the practice by some long distance
companies to switch consumers' long distance service without their consent.
Instances of slamming have risen as greater competition in the long distance
market have made verification procedures less stringent.

Title: Slamming Bill Passes Senate
Source: Washington Post (C9,C12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/13/061l-051398-idx.html
Author: Mike Mills
Issue: Long-Distance
Description: Legislation aimed at cracking down on "slamming," the practice
of switching a customers long-distance telephone carrier without their
permission, passed unanimously in the Senate yesterday. The legislation
would impose new penalties on slammers, with fines ranging from $40,000 for
a first time offense to $250,000 for repeat offenders. The bill also seeks
to eliminate common slamming methods. "The message will get out to the
slammers that the cost of playing poker has gone up dramatically, and if
they want to gamble they will lose a lot," said Sen. Richard J. Durbin
(D-IL), an early advocate of anti-slamming laws. "The FCC had been toothless
in dealing with them, and we haven't taken it as seriously as we should have."

Title: New Encryption Legislation Billed as Compromise
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/13encrypt.html
Author: Jeri Clausing
Issue: Encryption
Description: Senators John Ashcroft (R-MO) and Patrick J. Leahy (D-VT)
unveiled an encryption bill yesterday that is being described as a
common-sense approach. The bill, dubbed the E-Privacy Act, balances the
privacy, economic and national security concerns that have kept the Clinton
administration from lifting its export controls on data-scrambling
technology in the past. "Fundamentally, the debate over computer privacy is
about the relationship of U.S. citizens to our government," Ashcroft said.
"There's been a push for legislation which would require individuals to hand
over the spare keys to their private files. Innocent citizens are expected
to trust the bureaucracy not to abuse their personal information, in spite
of actions to the contrary by agencies such as the IRS and the FBI. The
E-Privacy Act addresses these concerns by balancing privacy rights with
legitimate concerns of law enforcement."

** Advertising **

Title: An anti-award ceremony that seeks to bury Madison
Avenue, not to praise it
Source: New York Times (C7)
http://www.nytimes.com/yr/mo/day/news/financial/critics-ad-column.html
Author: Stuart Elliott
Issue: Advertising
Description: The Schmios were awarded last night. The event was an effort to
mock marketers and to encourage a public discourse on advertising. "The
basic point is that we want you to be critical when you experience media,"
said host Neil Postman of New York University. The ceremony's theme this
year was "Kids for sale." The "Possessions Are Everything Award" went to
Sears for a scholarship contest advertised in Seventeen magazine. The ad
featured the headlines "You gotta stand up for yourself" and "You gotta
believe in your dreams," and concluded, "But you gotta have something to
wear. Gotta have the clothes."

** Free Speech **

Title: Reasserting freedom of the press
Source: Chicago Tribune (Sec 1, p.21)
http://chicago.tribune.com/news/opinion/commentary/article/0,1051,SAV-98051
30006,00.html
Author: Natalia Giannini, teacher, Lantana, Florida
Issue: Free Speech
Description: The winning entry of the Inter American Press Association's
Chapultepec Essay Contest is best summed in its own words: "If we don't
challenge the injustices that take place in our own countries, in our own
limited spheres, we could lose our voices, and to become silenced is the
beginning of the long and accelerating road to physical and intellectual
oppression."

** Telecommuting **

Title: Families, Communities Can Benefit From Rise in Home-Based Work
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Sue Shellenbarger
Issue: Telecommuting/Family
Description: One in every eight U.S. households has an adult that works at
home, and this number is expected to rise to one in every five by 2002. This
growing trend could begin to transform both home and community life.
Visionaries have long hoped that this migration to home-based work would
strengthen families and neighborhoods weakened by long commutes and the
increasingly long work day. Interviews with telecommuters at
Hewlett-Packard, IBM and AT&T are suggesting that it can make a difference.
Kids can benefit from an increase in parental presence, they can pick up
healthy work ethics from parents working at home and the parents can feel
more involved in their family. Teleworkers can also help to knit
neighborhoods and communities together by taking a break during their day to
volunteer in the community (for things such as shoveling snow), and help out
and/or meet with neighbors and friends. While this all sounds good there are
still some kinks to be worked out. One is the self-imposed and employer
pressure on teleworkers to produce more and the effect this state of
"absent-while-present" can have on loved ones. The
other is that home-office technology can make it easier to ignore time zones
and geographic boundaries so that work begins to creep into nights and
weekends. "Teleworking does lead to flexibility. So you'd think that
teleworking would lead to better work-life balance. But what happens, on
average, is that people work so many more hours that on the whole, they're
not any better off." said telecommuter Jeff Hill, human-resource researcher
for IBM. "The key isn't is the practice," he says. "It's in the individual
making use of the practice to have a full life."

** Television **

Title: Pitcher may help Cubs fans catch more games
Source: Chicago Tribune (Sec 3, p.2)
http://chicago.tribune.com/business/businessnews/article/0,1051,SAV-9805130
126,00.html
Author: Jim Kirk
Issue: Television Economics
Description: Slumping ratings for baseball, the Tribune's stake in the WB
network and CLTV, and the priorities of advertisers all were factors in the
Tribune Company's decision to air some 62 Cubs games on cable station CLTV
instead of broadcast station WGN. And boy are some people pissed. Rookie
phenom Kerry Wood set the major league record for strikeouts in consecutive
games the other night, but Cubs fans that do not subscribe to cable could
not see it. If the Cubs -- and Wood -- stay hot, some of those Cubs games
may move back to WGN from cable. [Hey, we have different priorities here.]
[Also see ChiTrib, Sec 4, p.1, "Wood works havoc with TV decision" by
Michael Hirsley
http://chicago.tribune.com/sports/cubs/article/0,1051,ART-8503,00.html]

*********
Back to you, Betsy...

Mergers
Ameritech, SBC talk merger (ChiTrib)
SBC Communications To Acquire Ameritech In a $55 Billion Deal
(WSJ)
Megamerger Would Create Phone Giant (WP)

Universal Service
Bombarded by Criticism, FCC Recoils $2.65 Billion
Web-Connection Program (WSJ)
Report Says U.S. Program to Wire Schools May
Fall Short (CyberTimes)
Universal Service Support for Schools and Libraries (FCC)

Television
As Their Dominance Erodes, Networks Plan Big Changes (NYT)
Cable News: Eyes of Belo Are Upon All Texas (WSJ)
New cable services are everywhere, but they all seem to be owned
by the same big companies (NYT)
DTV Pending Construction Permit Applications (FCC)
Broadcasters Offer Subscription DTV Fee Plan (B&C)
Choice is Key to Winning Consumers to Digital (B&C)
Sinclair Studies Minority Opportunities (B&C)
Putting Commercial in Noncommercial (B&C)
Local-Into-Local Bill Not Likely This Year (B&C)

Campaign Finance Reform
Campaign Reform Illusions (NYT)
TV ads dial up cost of California primary (ChiTrib)
In Brief (B&C)

Internet
Grant Program Encourages Study of Effects of Computer Use on Children
(CyberTimes)
Studies Reach Contradictory Conclusions About the
Internet Population (CyberTimes)
In Terms of the Audience, Size Matters. But How Big?
And by Whose Measure? (NYT)
The Search Services Want Your Eyes to Find No Reason to Wander (NYT)
A radio format with no boundaries (ChiTrib)
Support Grows For Faster Modem Speeds (NYT)
Ameritech sitting by phone for FCC's decision
on high-speed data rules (ChiTrib)

Competition
Cable Slow to Pick Up Telephone (B&C)

Antitrust
No case against Windows98 (ChiTrib)
TV Listings Stir Windows98 Dispute (NYT)

Journalism
PEN Award to Maine Reporter Ignites Feud With Newspaper (NYT)

** Mergers **

Title: Ameritech, SBC talk merger
Source: Chicago Tribune (p.1)
http://chicago.tribune.com/business/businessnews/article/0,1051,ART-8418,00
.html
Issue: Mergers
Description: Sources say that the boards of local telephone giants Ameritech
and SBC met separately over the weekend to discuss a merger. The deal -- a
reported stock swap -- could be worth $55 billion. If realized, the merger
would result in just four Baby Bells after the break up of AT&T in 1984
created seven.

Title: SBC Communications To Acquire Ameritech In a $55 Billion Deal
Source: Wall Street Journal (A1,A10)
http://wsj.com/
Author: Anita Raghavan, Steven Lipin & John J. Keller
Title: Megamerger Would Create Phone Giant
Source: Washington Post (A1,A5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/11/133l-051198-idx.html
Author: Mike Mills
Issue: Merger
Description: In the biggest deal ever in the "take-over-crazed"
telecommunications industry, SBC Communications Inc. is about to acquire
fellow Bell telephone company Ameritech Corp. in a stock swap valued at $55
billion. The deal would resemble much of the old Bell system and create the
nation's biggest local telephone company, said industry sources. While
spokespeople for both companies declined to comment, others familiar with
the talks say that an announcement could come as early as today. The merger
would continue a trend of consolidation in the national telecommunications
industry as companies seek size and diversity.

** Universal Service **

Title: Bombarded by Criticism, FCC Recoils $2.65 Billion Web-Connection Program
Source: Wall Street Journal (B6)
http://wsj.com/
Author: John Simons
Issue: Universal Service
Description: In a report issued to Congress on Friday, the Federal
Communications Commission said it will combine the Schools and Libraries
Corp. with the Rural Health Care Corp. The decision will fold the two
entities into the Universal Service Administration Co., an "existing
quasi-governmental group that subsidizes the telephone service in low-income
urban areas and rural regions." The FCC also said it will possibly cut back
the $2.65 billion national effort to connect schools, libraries and rural
health care centers to the Internet, stating that the commission doesn't
have enough money to fund the program at its current levels.

Title: Report Says U.S. Program to Wire Schools May Fall Short
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/09fcc.html
Author: Jeri Clausing
Issue: Universal Service
Description: The Federal Communications Commission reported Friday that
money available to the federal program established to help schools and
libraries obtain Internet access could fall $300 million short of the $2.02
billion requested for 1998 unless new fees are imposed on long-distance
carriers. This means that the program, also known as the e-rate program, may
not be equipped to finance all of the 45,000 applications it received this
year. "This certainly raises the possibility," said an FCC official who
spoke only on the condition of anonymity. "We will be seeking public comment
on how much to fund."

Title: Universal Service Support for Schools and Libraries
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Reports/fcc98085.wp
Issue: Universal Service
Description: "In a Report to Congress submitted today, the Commission
proposed a single entity that would administer all forms of federal
universal service support. The Report responds to Congress' request that the
Commission propose a single entity for administering universal service
support for rural health care providers and schools and libraries. The
Commission proposed that these duties be performed by the Universal Service
Administrative Company (USAC), the entity that currently administers the
high cost and low income support mechanisms and that performs billing,
collection, and disbursement functions for all of the universal service
support mechanisms." [See press release
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8035.html]

** Television **

Title: As Their Dominance Erodes, Networks Plan Big Changes
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/national/tv-seinfeld-media.html
Author: Bill Carter
Issue: Television
Description: The big television networks are in trouble. President of CBS
Television Leslie Moonves said, "It's a time of total transition. You have
three of four networks that probably aren't going to make any money next
season, and NBC, which made $500 million this year, will probably be down to
$100 million. It's ugly." In the last year or so, the following challenges
for the networks have arisen: hit series are becoming harder to find and
turning up on nontraditional channels like Comedy Central [South Park] and
the WB [Dawson's Creek]; the cost of programming (i.e. NFL football games
and E.R) have skyrocketed); and their audience continues to shrink. "We used
to think the possibility existed that the erosion was going to stop," said
ABC president Robert Iger. "We were silly. It's never going to stop."

Title: Cable News: Eyes of Belo Are Upon All Texas
Source: Wall Street Journal (B12)
http://wsj.com/
Author: Alejandro Bodipo-Memba
Issue: Cable & Community
Description: A.H. Belo Corp., already a major media player in Houston and
Dallas, is planning to launch a Texas cable-news network early next year.
A.H. Belo will use its ownership of network-affiliated television stations
in Houston, Dallas and San Antonio, and its "flagship" publication, the
Dallas Morning News, in conjunction with its new network. The move reflects
a nationwide trend toward developing regional broadcast networks that depend
on the expertise of existing newspaper and television reporters. "Regional
cable news networks provide a community orientation that probes the politics
and lives of local institutions," said Josh Sapan, president of Rainbow
Media Holdings in NY, a unit of Cablevision Systems Corp.

Title: New cable services are everywhere, but they all seem to be owned
by the same big companies
Source: New York Times (C10)
http://www.nytimes.com/yr/mo/day/news/financial/11medi.html
Author: Geraldine Fabrikant
Issue: Cable/Ownership
Description: The Children's Television Workshop has teamed up with Viacom's
Nickelodeon to create a new commercial-free cable channel of children's
programming. Ten years ago, CTW might have gone it alone as cable operators
were hungry for content. Now, CTW will need Viacom's clout to get the
channel space on cable. "So competitive has it become to get on cable -- and
so uncertain are projections about the time it takes to reach profitability
-- that only giant companies with cable services already have the money and
the muscle to develop new concepts."

Title: DTV Pending Construction Permit Applications
Source: FCC
http://www.fcc.gov
Issue: Digital TV
Description: DTV Pending Construction Permit Applications
http://www.fcc.gov/mmb/vsd/files/dtvpend.html and the Top Ten Market
Network Affiliates DTV Early Builder Application Status
http://www.fcc.gov/mmb/vsd/files/dtvstat.html.

Title: Broadcasters Offer Subscription DTV Fee Plan
Source: Broadcasting&Cable (p22)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Digital TV
Description: Broadcasters and others are saying that federal fees for
digital TV subscription services should be based on the stations gross
revenue for any such business. They say that a revenue-based fee would be
the easiest to administer. "Setting fees based on the gross revenue ...would
impose the fewest costs on the FCC and licensees," said the NAB and the
Association for Maximum Service TV (MSTV). Regulators are working to
implement a fee plan that satisfies the parts of the 1996 Telecommunications
Act that require the FCC to collect fees for "subscription -based ancillary
services that stations offer over the channel they receive for digital TV."

Title: Choice is Key to Winning Consumers to Digital
Source: Broadcasting&Cable (p62)
http://www.broadcastingcable.com/
Author: Donna Petrozzello
Issue: Digital TV
Description: Last week, industry operators suggested that the vast majority
of consumers have "Homer Simpson rather that a Winslow Homer in their living
rooms." (Referencing the $30 million Bill Gates recently spent to acquire a
Homer seascape.) Panelists used the observation made by moderator Jeff
Greenfield to suggest that for cable to succeed in a digital world it must
emphasize the increased choice consumers will receive through the use of a
high-definition TV set rather than the improved picture. Leo Hindery Jr.,
president of TeleCommunications Inc. suggested that "pitching consumers to
buy high-priced TV's as the proper way to receive digital TV comes out in a
disrespectful, revolutionary fashion...We have to be mindful of consumers
and their ability to afford new TV sets. Digital needs to be rolled out, not
dropped on consumers heads."

Title: Sinclair Studies Minority Opportunities
Source: Broadcasting&Cable (p23)
http://www.broadcastingcable.com/
Author: Chris McConnell & paige Albiniak
Issue: Minorities
Description: Last week, the Sinclair Broadcast Group announced that it is
undertaking a "comprehensive effort" to find ways to improve minority
participation in broadcasting. Sinclair's director of gov't relations, Mark
Hyman, said that the group will focus on ways to improve minority access to
capital.

Title: Putting Commercial in Noncommercial
Source: Broadcasting&Cable (p38)
http://www.broadcastingcable.com/
Author: Steve McClellan
Issue: Public Television
Description: The Public Broadcasting Service made a presentation to the New
York ad agency community last week that "took shots' at cable networks and
commercial broadcasters as it works to generate more sponsorship income for
itself. Executives at the presentation said that PBS hope to write about 10
percent more national sponsorship business next season. Ervin Duggan, PBS
President, told attendees that the PBS brand was "bigger than any cable
channel."

Title: Local-Into-Local Bill Not Likely This Year
Source: Broadcasting&Cable (p47)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Satellite
Description: Although congressional staffers at a Cable 1998 panel said they
would like to see legislation that allows satellite television providers to
offer local broadcast signals in local markets, they don't expect any such
legislation to pass this year. When asked about the possibility of
local-into-local legislation passing, Whitney Fox, telecommunications
counsel to committee Chairman Billy Tauzin (R-LA), said: "Gosh, we're
hopeful...We would like to see some procompetitive policy get through before
March 1999."

** Campaign Finance Reform **

Title: Campaign Reform Illusions
Source: New York Times (A18)
http://www.nytimes.com/yr/mo/day/editorial/11mon1.html
Author: NYT Editorial Staff
Issue: Campaign Finance Reform
Description: A bipartisan group of freshman members of Congress are pushing
a new version of campaign finance reform in the House. Instead of curbing
the flow of money into the system, the bill simply rechannels it. The bill
waters down the one offered by Reps. Christopher Shays (CT) and Martin
Meehan (MA). Like the McCain-Feingold bill in the Senate, Shays-Meehan would
put similar fund raising restrictions that candidates face on the parties
and groups running attack ads within 60 days of an election. The House will
vote on reform next month. "But if lawmakers pass something that does not
work, they will only breed voter cynicism and assist those politicians who
would continue a corrupt system in a different guise."

Title: TV ads dial up cost of California primary
Source: Chicago Tribune (Sec 1, p.4)
http://chicago.tribune.com/news/nationworld/article/0,1051,SAV-9805110126,0
0.html
Author: Karen Brandon
Issue: Campaign Finance/Free Time for Candidates
Description: Some are calling it "the TV-image ad." As the June 2 primary
election date nears, Californians are seeing little of the candidates past
the TV ads they buy. Two of the four candidates are multi-millionaires who
are spending their money freely -- perhaps as much as $50 million between
them just on the primary. The race seems destined to become the most
expensive state election in US history. A fellow at the Public Policy
Institute of California, a nonpartisan nonprofit conducting voter polls,
says, "Eighty percent of Californians say they they've seen TV ads, and only
9 percent say they've closely followed news stories of the election. Do we
want to elect our leaders based on television advertisement, pretty much
devoid of news content or other sources of information? That's the way this
seems to be turning out."

Title: In Brief
Source: Broadcasting&Cable
http://www.broadcastingcable.com/
Author: B&C Writers
Issue: Campaigns & Free-Air Time
Description: FCC commissioners were again unable to reach an agreement last
week on what to do with the FCC's "personal attach and political editorial
rules." The rules require stations to "give political candidates the
opportunity to respond to on-air attacks and editorials. An appeals court
today is scheduled to hear arguments in the Radio-Television News Directors
Assoc.'s efforts to prompt FCC action on its petition to eliminate the two
rules."

** Internet **

Title: Grant Program Encourages Study of Effects of Computer Use on Children
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/09grant.html
Author: Pamela Mendels
Issue: Children and Technology
Description: Learning in the Real World, a small not-for-profit group based
in Woodland, Calif., plans to distribute $50,000 in grants this year for
studies of the effect of computer use on children's learning and/or
cognitive and emotional development. "There is no shortage of opinions out
there, but a distinct shortage of hard data," said William L. Rukeyser,
coordinator of the group. "And with an issue this important, there is a
crying need for hard disinterested research conducted at the university
research institution level." The grants will be given out in awards of about
$5,000 and $10,000.

Title: Studies Reach Contradictory Conclusions About the Internet Population
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/10race.html
Author: Rebecca Fairly Raney
Issue: Internet
Description: Over the past month, two released studies looking at Internet
demographics have reached contrary conclusions, highlighting just how
difficult it can be to define a medium that is changing so quickly. The New
England-based Roper Center for Public Opinion Research published a study
that revealed people who use the Internet reflect the racial composition of
America, and that gaps in age, sex and income among users are rapidly
closing. The study was published in its journal, The Public Perspective, the
second week of April. A week later, researchers at Vanderbilt Univ.
published a study in the journal Science that showed that blacks in
household with incomes below 440,000 were far less likely to have Internet
access than whites in the same income bracket. Both studies were based on
national surveys, so why do we see such varying results? The Roper Center
based its research on data collected this past winter, while the Vanderbilt
study was based on data collected 15 months ago. During this year-long
period the Internet population has more than doubled. "As fine as this
[Vanderbilt] study is, treating it as state of the art may do a great
disservice," said David Birdsell, an author of the study published in The
Public Perspective. "The amalgamation of issuing the report now and the
coverage it has received suggest these are the problems we now face -- and
that's not true," said Birdsell. Donna L. Hoffman, one of the authors of the
Vanderbilt study, acknowledged the elapsed time since the collection of her
data and said people should read the study as the state of the Internet a
year ago. "There's certainly no claim that that's the case today," Hoffman said.

Eye Catching: How New Media Are Racing to Become the Mass Media (Two-part
story in NYT)

Title: In Terms of the Audience, Size Matters. But How Big?
And by Whose Measure?
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/05/biztech/articles/11web-rate.html
Author: Saul Hansell
Issue: Internet
Description: A host of companies have gotten into the Internet ratings
business. Relevant Knowledge, Net Ratings, and, soon, Nielsen all try to
measure the traffic at popular websites. They numbers mean dollars as more
and more advertising money is spent on the Internet. The Top 10 websites
collect 52% on the Internet ad dollars.

Title: The Search Services Want Your Eyes to Find No Reason to Wander
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/05/biztech/articles/11web-eyes.html
Author: Saul Hansell
Issue: Internet/Online Services
Description: Companies have been searching for a profitable business model
on the Internet for the last three years. They may have found it -- the
search itself. Internet search engines are the most visited sites on the
Web; they get millions of visitors each day. The new media is becoming a
mass media and counting eyeballs is beginning to count. Wall Street has
valued two publicly traded websites (InfoSeek and Lycos) at $9 billion. To
keep those eyeballs, these search sites are adding new services -- email,
chat rooms, etc -- to make sure visitors don't wander away.

Title: A radio format with no boundaries
Source: Chicago Tribune (Sec 4, p.1)
http://chicago.tribune.com/business/businessnews/article/0,1051,ART-8331,00
.html
Author: Tim Jones
Issue: Internet/Radio
Description: Many radio stations are moving their broadcasts onto the
Internet. It is easy and inexpensive (~$15,000) to do. But two questions
arise: Who is out there listening? and How much money can be made off them?
The Internet offers radio broadcasters a global office and interactivity
unheard of on even the best radio receivers. With improvements in fidelity,
Internet radio's audience could really take off.

Title: Support Grows For Faster Modem Speeds
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/11modem.html
Author: Seth Schiesel
Issue: InfoTech
Description: In January, Microsoft, Compact, and Intel announced the
creation of the Universal ADSL Working Group along with the country's six
largest telephone companies. Now some of the largest telecos in the world
have apparently agreed to join including British Telecom, Deutsche Telekom,
France Telecom, Nippon Telegraph and Telephone, and Singapore
Telecommunications. Asymmetric Digital Subscriber Line (ADSL) allows
consumers to connect to the Internet using copper telephone lines at speeds
30 times greater than they can now. The group hopes to have ADSL technology
available to the general public by the end of the year.

Title: Ameritech sitting by phone for FCC's decision on high-speed data rules
Source: Chicago Tribune (Sec 2, p.2)
http://chicago.tribune.com
Issue: Internet Access
Description: Ameritech and other phone companies are excited about an
opportunity to offer ultrafast Internet connections via today's cooper wire
telephone lines. But they will not be so interested in the service -- called
DSL -- if forced by the Federal Communications Commission to allow
competitors access to the technology. "If you don't require the incumbents
Bells to unbundle DSL service," argues a lawyer for Internet service
providers (ISPs), " you'll be recreating the same kind of monopoly for
Internet connections that we're trying to break up in telecommunications."

** Competition **

Title: Cable Slow to Pick Up Telephone
Source: Broadcasting&Cable (P63)
http://www.broadcastingcable.com/
Author: Joe Schlosser
Issue: Telephony
Description: Federal regulators agree that the process of getting cable
operators into the local telephone business has been rather slow and
tedious. At last week's "The Telecom Act Turns Two: The State Perspective"
panel, FCC Commissioner Gloria Tristani commented that the process has been
anything but fast but acknowledged that lately there have been some positive
signs. "Cable's entry has been slow, just like everybody else's, but
somewhat promising in the last six months," Tristani said. "The cable
companies are starting to get into residential areas now, which is a natural
area to go into. They had just been in the business side, but now they are
venturing toward the residential areas." David Svanda, commissioner of the
Michigan Public Service Commission, said that "there is obviously a lot of
ground to be covered. But this is not unique to his industry. Every
industry that has gone from a monopoly-type environment to a market-driven
one has gone through the same kind of thing."

** Antitrust **

Title: No case against Windows98
Source: Chicago Tribune
http://chicago.tribune.com/news/opinion/article/0,1051,SAV-9805110101,00...
Author: ChiTrib Editorial Staff
Issue: Antitrust
Description: The US government must prove that Microsoft achieved dominance
in the operating system market through predatory or exclusionary acts. The
Department of Justice has not convincingly made this case yet. People use
Windows because they like it better. "This is not to say there won't come a
day when an antitrust case *could* be made against Microsoft. But this isn't
the case, and this isn't the day."

Title: TV Listings Stir Windows98 Dispute
Source: New York Times (C5)
http://www.nytimes.com/
Author: Joel Brinkley
Issue: Antitrust
Description: Part of Windows98 is an electronic programming guide that tells
you what is going to be on TV. Microsoft sees it as an attractive new
service that could broaden its customer base. But Electronic TV Host, a
small company that already provides the service, sees it another way. The
company is worried that no one will pay for the service once they can get it
free from Microsoft. It is a familiar complaint and very similar to the one
made by Netscape.

** Journalism **

Title: PEN Award to Maine Reporter Ignites Feud With Newspaper
Source: New York Times (A10)
http://www.nytimes.com/yr/mo/day/news/national/maine-paper.html
Author: Carey Goldberg
Issue: Journalism
Description: The PEN American Center plans on awarding Terrilyn Simpson
$25,000 for defending the First Amendment. Her former employer thinks PEN
should check the fact first. PEN is awarding Ms. Simpson the award because
of the hardship she endured trying to publish an article about the chemical
exposure at a local paper mill that left workers ill or dead. PEN's pres
release on the award implied that the newspaper owner, Courier Publications,
was in cahoots with the paper mill. That's news to Courier. Ms. Simpson's
former employer says that she left her position for unclear reasons before
the article was finished. Ms. Simpson claims the newspaper looked for
excuses not to publish the article.
*********

Universal Service
Senators Reiterate Concern About Rural Phone Rates (TelecomAM)
New Competitors in Ideal Position to Wire
Schools and Libraries (TelecomAM)

Internet
The American Way of Spam (NYT)

Cable
TCI Will Install Sun's Java Software In All TV Boxes, in Blow to
Microsoft (WSJ)

Arts
The Effect of Technology in Opera Form (CyberTimes)
Adding a Dimension to Web Art (NYT)

Journalism
TV expose of drug run to Britain called fake (ChiTrib)

Antitrust
Gates, Antitrust Chief Confer (WP)

InfoTech
Firm To Take Chip Technology to Market (WP)
Apple Gives Bold Answer to Sub-$1,000 Market (WSJ)
Europe's PC Market Continued to Surge (WSJ)

** Universal Service **

Title: Senators Reiterate Concern About Rural Phone Rates
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: Members of the Senate Communications Subcommittee told FCC
Common Carrier Bureau Chief Richard Metzger that the Commission should make
no changes to universal service programs that would raise rural telephone
rates. Senators Conrad Burns (R-MT) Sam Brownback (R-KS) and Jay Rockefeller
(D-WV) let Chief Metzger know they think that current plans would "doom
rural customers to higher rates." At a May 6 oversight hearing, Sen
Rockefeller also asked Chief Metzger what the FCC will do in the to prevent
phone companies -- namely AT&T -- from passing universal service charges to
consumers despite access charge reductions that
"more than offset" new costs. Sen Rockefeller said he is "very disturbed" by
the
lack of "truth in billing."

Title: New Competitors in Ideal Position to Wire Schools and Libraries
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: Ira Fishman, head of the Schools and Libraries Corporation,
told the Association of Local Telecommunications Services that new
competitive phone companies are in an "ideal" situation to hook up schools
and libraries to the Internet. Many schools and libraries feel left out by
the big incumbent companies, Mr. Fishman said, and new, smaller companies
should take advantage of these entities that are in "growth mode." "The
vendor who can serve them well can get a lot of goodwill and free
publicity," Mr. Fishman said.

** Internet **

Title: The American Way of Spam
Source: New York Times (D1)
http://www.nytimes.com/library/tech/98/05/circuits/articles/07spam.html
Author: Amy Harmon
Issue: Internet
Description: Is the practice huge amounts of unsolicited email "(a) the End
of Civilization or (b) a Triumph of Free Enterprise?" The Internet's first
"internecine conflict" is the spam wars -- on one side are cyberentreneurs
who argue they are just making a living by sending out commercial bulk email
and on the other side are people who just hate unwanted email in their In
box and are fighting to block it.

** Cable **

Title: TCI Will Install Sun's Java Software In All TV Boxes, in Blow to
Microsoft
Source: Wall Street Journal (A11)
http://wsj.com/
Author: David Bank
Issue: Cable
Description: Cable TV operator, Tele-Communications Inc., said it would
install Sun Microsystems Inc.'s Java software on all of its new TV set-top
boxes. TCI's decision helps to "bolster" Sun's bid to "outflank" Microsoft
Corp. in the development of interactive services via cable television.

** Arts **

Title: The Effect of Technology in Opera Form
Source: New York Times (Cybertimes)
http://www.nytimes.com/library/tech/98/05/cyber/artsatlarge/07artsatlarg...
Author: Matthew Mirapaul
Issue: Arts
Description: Video artist Beryl Korot and composer Steve Reich are using
visual-effects software, an audio-processing program and a sampling keyboard
in their next work. The two artists are using these digital devices to help
tell "Three Tales," a 21st century opera that will take the broad effects of
technology on 20th century society as its central theme. "One of the
questions that's an underpinning of the whole piece is -- is there ever a
control on knowledge?" Korot said during a telephone interview last week.
"Do we ever look at how much is good to know? Is there ever a limitation on
knowledge or do we just pursue, pursue, pursue, wherever it may lead?" Reich
said: "We're trying to achieve a real investigation into the whole physical
and spiritual underpinnings of technology. Each part of the piece will tell
the story, will give you a feeling of the zeitgeist and then will also go
into the religious issues that will come up in relationship to technology."
Previews of the first act will appear at different venues, but the full
opera is not scheduled to be performed until 2001.

Title: Adding a Dimension to Web Art
Source: New York Times (D4)
http://www.nytimes.com/library/tech/98/05/circuits/articles/07glas.html
Author: Tina Kelley
Issue: Arts
Description: A growing amount od three dimensional art is available on the
World Wide Web. Check out these sites: http://www.express.ca/rigibson,
http://www.mulkeyvision.com/pages3d/3d10.html,
http://www.sover.net/~manx/mard3d.html.

** Journalism **

Title: TV expose of drug run to Britain called fake
Source: Chicago Tribune (Sec 1, p.15)
http://www.chicagotribune.com
Author: Ray Moseley
Issue: Journalism
Description: An award-winning documentary shown in Britain in 1996 and later
on HBO was a fake, the Guardian newspaper claims. "The Connection" purported
to show an interview with the number three man in the Cali cartel and the
travels of a drug courier smuggling heroin into Briton. The Guardian
disputed the identity of the interviewees and the locations and shooting
schedule of the film. "The Connection" won 8 national and international
awards including 3 in the US.

** Antitrust **

Title: Gates, Antitrust Chief Confer
Source: Washington Post (E3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/07/178l-050798-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: On Tuesday night Microsoft Corp. Chairman, Bill Gates
personally appealed to Justice Dept. antitrust chief, Joel Klein, to not
block the release of Microsoft's Windows 98 software. The meeting lasted for
two-hours but there was no discussion of a settlement as the government
considers filing a broad antitrust case. "He wanted to present his views to
us," said Justice spokeswoman Gina Talmona. "We listened, obviously."
Microsoft spokesman Mark Murray said: "It was a good opportunity for him to
talk directly with Mr. Klein about the importance of protecting the
industry's right to innovate...Bill wanted to share his perspective from 25
years in the software industry, particularly the history of how the
integration of new feature into the operating system has been the
cornerstone of the software industry for two decades."

** InfoTech **

Title: Firm To Take Chip Technology to Market
Source: Washington Post (E3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/07/170l-050798-idx.html
Author: Elizabeth Corcoran
Issue: Computer Technology
Description: A new company, United States Advanced Lithography, said
yesterday that it plans to commercialize advanced computer chip-making
technology that is being developed by a large nonprofit consortium of U.S.
chipmakers and federal laboratories. The technology builds computer chips
with tiny components that measure less than one-tenth of a micron across (a
single strand of human hair measures about 100 microns). Scientist say that
developing technologies that can build these types of chips is vital to the
industry's future. The nonprofit consortium is also in discussion with
foreign equipment makers who might be interested in bringing this type of
technology to the market.

Title: Apple Gives Bold Answer to Sub-$1,000 Market
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Jim Carlton
Issue: Computer Technology
Description: Apple Computer Inc. unveiled a new computer yesterday called
the iMac Machine. Outside of a monitor and PowerPC G3 microprocessor being
included in its price of $1,299. The computer will most likely make waves
due to its unusual design -- a combination of Jetson-style aesthetics and
the Macintosh concept of a one-piece computer. "It looks like it's from
another planet -- a good planet," said Steve Jobs, Apple's interim Chief
Executive Officer. "One with better designers."

Title: Europe's PC Market Continued to Surge
Source: Wall Street Journal (B7)
http://wsj.com/
Author: WSJ Staff Reporter
Issue: International
Description: According to Dataquest, a market research unit of U.S.-based
Gartner Group, the European personal-computer market continued to surge in
the first quarter. "It has been another tremendous quarter," said Steve
Brazier, an associate director at Dataquest. The European PC market grew
26.4% in the first quarter, compared to 23.8% in the fourth quarter last
year and 16.9% in the third quarter.
*********
Diagnosis: Post-tropical depression. Prescription: Daily Headlines and lots
of 'em.

Digital TV
WSJ: TCI and Microsoft Sign Pact on Software for Set-Top Boxes

Internet
WP: Va. to Offer 1st Access to Internet2
NYT: No Refunds for Domain Name Recipients

Search Services
WSJ: Netscape Jolts Web by Allying with Excite, Inc.
NYT: Excite, a Web Directory Service, In a 2-Year Deal With Netscape
WSJ: AT&T Enters Marketing Pact with Lycos, Inc.

International
WP: Double Trouble for Europe's Computers

** Digital TV **

Title: TCI and Microsoft Sign Pact on Software for Set-Top Boxes
Source: Wall Street Journal (A8)
http://www.wsj.com/
Author: WSJ Staff Reporter
Issue: Digital TV
Description: Tele-Communications, Inc (TCI) and Microsoft Corp, signed a
contract on the software that will be used in TCI's digital TV set-top boxes,
which will contain MS's Windows CE operating system. The deal allows TCI to
retain the right to use the operating system of rival Sun Microsystems.

** Internet **

Title: Va. to Offer 1st Access to Internet2
Source: Washington Post (D12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/05/063l-050598-idx.html
Author: Frank Swoboda
Issue: Internet
Description: Officials announced Monday that the nation's first access point
to Internet2, a high-speed computer network, will be opened in the
Washington area this fall by a consortium of local universities and
corporations. The project, to be formally announced tomorrow, will be called
Mid-Atlantic Crossroads (MAX).

Title: No Refunds for Domain Name Recipients
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/05domain.html
Author: Jeri Clausing
Issue: Internet Legislation
Description: In a bill passed last week and signed almost immediately,
President Clinton and lawmakers retroactively authorized collection of an
extra $30 paid by people registering their Internet addresses. The surcharge
in mention was declared an illegal tax by Judge Thomas F. Hogan last month.
The action, intended to free up $60 million for spending on the development
of the Next Generation Internet, could further delay a refund plan that
would have benefitted the millions of people who paid the additional fee
over the past two years. The money had been on hold since January when
Washington lawyer, William Bode, won a temporary restraining order freezing
the funds.

** Search Services **

Title: Netscape Jolts Web by Allying with Excite, Inc.
Source: Wall Street Journal (B1,B7)
http://www.wsj.com/http://www.wsj.com
Author: Kara Swisher
Issue: Internet Services
Description: Netscape and Excite are joining forces in the race to stake out
the entryway to the World Wide Web. In a two-year deal, Excite (the #2
Internet search company) will create a search service that will bear both
companies' names. Excite will pay Netscape $70 million in guaranteed
advertising revenue and take over the job of selling advertising for the
Netscape site. The agreement is an attempt to leapfrog Yahoo!, the #1 search
and directory site on the 'Net.

Title: Excite, a Web Directory Service, In a 2-Year Deal With Netscape
Source: New York Times (D1,D11)
http://www.nytimes.com/library/tech/98/05/biztech/articles/05netscape.html
Author: Saul Hansell
Issue: Internet Services
Description: Excite agreed yesterday to pay Netscape Communications $70
million for the right to "provide a fraction of the search services and
other information that Netscape will make available to users of its browser
software and home page" on the Web. Excite's move underscores how
"cut-throat" competition for Internet users has become. Excite expects the
deal to initially increase the amount of pages it serves each day by about 8
to 10 million and to take in $98 to $100 million over the two-year life of
the deal.

Title: AT&T Enters Marketing Pact with Lycos, Inc.
Source: Wall Street Journal (B6)
http://www.wsj.com
Author: Jared Sandberg (on G. Auerbach)
Issue: Internet
Description: AT&T struck an alliance with Internet-search service Lycos to
increase the phone company's visibility on the Internet while giving Lycos a
big marketing partner. Over the next three years, you'll be seeing more
promotions for AT&T services on Lycos' popular search site, and if you're an
AT&T WorldNet subscriber, Lycos will be your default browser when you log on.
The Lycos site will also be enhanced by a variety of new telecom features.
(Other agreements in this same vein include Sprint joining with CNET's Snap!
Directory, and MCI Communications Corp. contracting with Yahoo!.)

** International **

Title: Double Trouble for Europe's Computers
Source: Washington Post (D1,D12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/05/058l-050598-idx.html
Author: John Burgess
Issue: International/Y2K
Description: With the year 2000 just around the corner, Europe is not
dealing with one but two computer repair jobs of epic proportions. One is
the now familiar challenge of the Year 2000 "millennium bug," also known as
Y2K, that is present in many computers around the world. The other is
distinctly European: the reprogramming of millions of computers to accept
the euro, the unified currency that is scheduled for introduction in 11
countries on Jan. 4 of next year. Some experts fear that this "dual
pressure' will end up with each job only getting half-done. Robin Guernier,
who heads a London advocacy group called Taskforce 2000, and a few other
experts have been calling for a delay in the euro's introduction so computer
programmers can first focus on the Y2K problem. But to date they have had no
effect. Geoff Unwin, vice chairman of the management board of Cap Gemini, an
international computer consulting firm based in Paris, agrees that there is
a problem and the job will probably not be finished in time. But Unwin says,
"What is important now is that we prioritize what must work, what must run,
and make sure we put our scarce resources onto them."
*********