August 1998

Communications-related Headlines for 8/14/98

UNIVERSAL SERVICE
Cuts in U.S. Wiring Program Delay Schools Plans, Study Finds
(CyberTimes)

TELEPHONE REGULATION
Consumer Groups Ask FCC to Order Lower Residential
Long Distance Rates (TelecomAM)
Bell Atlantic Tells FCC to "Halt the Leaks" (TelecomAM)
Kennard Again Says He Didn't Pressure AT&T on Phone Bills (TelecomAM)
Most Replies Filed With FCC Support Consolidation of USAC (TelecomAM)

RADIO
Radio Free Oxon Hill (WP)
PRIVACY
Web Site Agrees to Safeguards in First On-Line Privacy Deal (NYT)
FTC Curbs Web Site Data (WP)
GeoCities Broke Privacy Pledge FTC Declares (WSJ)

MERGERS
Ohio PUC Sets Deadlines for Hearings on Ameritech-SBC Merger
(TelecomAM)

INTERNET
Filmmaker Sues ISP Over Termination of Email Service (CyberTimes)
Vatican Steps Up Digital Efforts With Papal Address (CyberTimes)

=================
UNIVERSAL SERVICE
=================

CUTS IN U.S. WIRING PROGRAM DELAY SCHOOLS PLANS, STUDY FINDS
Issue: E-rate
The National School Boards Association recently surveyed 12 states and 26
school districts to try to determine the effect of the cuts in the new
federal "E-rate" programs -- funding intended to subsidize Internet
connections for schools and libraries. "A lot of schools are going to be
delaying wiring projects because of the cuts," said Michelle C. Richards,
director of federal programs for the organization and editor of the report.
"Others will go ahead because of contractual obligations, but won't have the
resources to purchase hardware." Richards points out that the report is not
a scientific look at the cuts, but instead meant as a snapshot of the
situation many school districts are now facing. She believes that the
schools most at risk are those located in poor, but not the lowest income,
areas. Officials in those districts fear that their schools will be
considered too affluent to receive funding for Internet hookups, but too
poor to raise money for the wiring on their own.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
http://www.nytimes.com/library/tech/98/08/cyber/articles/14erate.html

====================
TELEPHONE REGULATION
====================

CONSUMER GROUPS ASK FCC TO ORDER LOWER RESIDENTIAL LONG DISTANCE RATES
Issue: Long Distance
Long distance carriers have shifted $2.1 billion in lower access fees to other
projects -- perhaps even subsidizing lower business rates -- rather than pass
the savings on to consumers, two consumer groups charged August 13. In a letter
to the FCC, the Consumers Union (CU) and Consumer Federation of America (CFA)
asked the Commission to order long distance carriers to account for their
savings and further reduce costs, TelecomAM reports. Mark Cooper, CFA
research director, suggested that the companies have been using the savings
to provide discounts and other incentives to keep corporate accounts. The
groups said long distance companies have paid less to connect calls through
local companies than last year, but rate plans have remained unchanged. At
the same time, the FCC has ordered new charges placed on customer bills: 1)
$1.50 per month for the new subscriber line charge; 2) up to $675 million in
new per-line access fees, with each company charging different rates; and 3)
a Universal Service Fund fee of nearly $500 million. The charges total about
$2.97 billion.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

BELL ATLANTIC TELLS FCC TO "HALT THE LEAKS"
Issue: Telephone Regulation
Responding to the August 13 story in the Washington Post, Bell Atlantic said
that it is not missing phone equipment from its offices and scolded the FCC
for leaking a Commission audit on the matter to the paper. Bell Atlantic
Vice President Tom Tauke asked the FCC to "halt the leaks" on a preliminary
audit that, according to a Post report, finds that the Bell companies are
missing about $5 billion in equipment that they claimed on accounting
reports filed with the FCC. Mr. Tauke said the article "calls into question
the integrity of the audit process at the FCC. Before members of the FCC
staff have determined the facts, they are briefing players on Capitol Hill
and state commissions and they are apparently briefing news reporters."
Further, Bell Atlantic said, two points in the article are "simply wrong."
Tauke said that "there is no significant amount" of equipment missing from
Bell Atlantic's central offices -- and the company has given the FCC
"extensive documentation" to show that the "vast majority" of equipment is
in place. Also, because rates are not based on property records, as the
article says, they are not affected by any "alleged discrepancy" in those
records.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

KENNARD AGAIN SAYS HE DIDN'T PRESSURE AT&T ON PHONE BILLS
Issue: Telephone Regulation
In a July 10 letter to House Commerce Committee Chairman Thomas Bliley
(R-VA), FCC Chairman Bill Kennard wrote "I want to assure you, as I assured
the Senate [Communications] Subcommittee in my testimony, that I have no
intent of causing carriers to hide on their bills any lawful rate increases
they need to impose." The FCC "questioned the need for carriers to burden
consumers with a separate line item on bills because no overall rate
increases would be required under the plan" adopted in May, Chairman Kennard
wrote. When the agency learned that carriers were going to require an
additional surcharge, through the universal service line item, its reaction
"was one of surprise and concern, given the corresponding access charge
reductions. It was in that context that the staff held discussions with the
carriers in the fall of 1997."
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

MOST REPLIES FILED WITH FCC SUPPORT CONSOLIDATION OF USAC
Issue: Universal Service
According to more than 40 comments and replies filed with the FCC in the
past week, most "generally" agrees with the FCC plan to consolidate the
three entities that administer the federal universal service programs into a
single administrator. But most also agreed that the FCC should "make it
clear" that neither the USAC nor its high-cost, rural health care and
schools and libraries divisions should be allowed to craft "substantial
rules or guidelines that determine the rights of carriers intended to
receive support." And officials from dozens of hospitals and independent
health care organizations asked the FCC to add two more health care
representatives to the committee that oversees telecom subsidies to health
care facilities.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

=====
RADIO
=====

RADIO FREE OXON HILL
Issue: Radio
In Washington D.C.'s Oxon Hill neighborhood, a low power radio station has
been broadcasting daily for the past four years from a tiny studio at the
back of a crowded Discount Mart chain store. Last week, the station's
operator, Steven Franco was told to shut down operations by representatives
from the Federal Communications Commission (FCC). While it is illegal to
operate a radio station without a license from the FCC, there are estimated
1,000 pirate stations like Franco's operating without FCC approval. Around
the nation people are using the radio to broadcast everything from radical
politics to school board meetings and local bands. Although the FCC has shut
down 255 of such stations in the last year alone, Chairman William Kennard
is considering action that would allow citizens to operate low-power
stations - costing as little as $1,500 to get on the air -- in their
communities. In the meantime, Steve Franco could face fines of up to
$10,000 and a visitation by federal marshals if he doesn't take WISD D-Mart
off the air.
[SOURCE: Washington Post (D1), AUTHOR: Marc Fisher]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/14/134l-081498-idx.html

=======
PRIVACY
=======

WEB SITE AGREES TO SAFEGUARDS IN FIRST ON-LINE PRIVACY DEAL (NYT)
FTC CURBS WEB SITES' DATA (WP)
GEOCITIES BROKE PRIVACY PLEDGE, FTC DECLARE (WSJ)
Issue: Privacy
One of the World Wide Webs most popular sites, GeoCities, has settled A
privacy complaint filed by the Federal Trade Commission (FTC). The FTC
alleged that the Web site had lied to consumers when it claimed it would not
disclose their personal data. "GeoCities misled it customers, both children
and adults, by not telling the truth about how it was using their personal
information," said director of FTC's consumer protection bureau. "This case
is a message to all Internet marketers that all statements made about their
information-collection practices must be accurate and complete." Under the
settlement, GeoCities agreed to not give out any personal data collected
during registration and not to gather any personal data from children under
13 without parental approval. Many hail this agreement as a major step
toward privacy protection on the Internet. "There is a cop on the beat,"
says Deirdre Mulligan, staff counsel for the Center for Democracy and
Technology. " This is the first real statement the FTC not only has the
power, but they're
going to use it."
[SOURCE: New York Times (A1, A15), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/98/08/biztech/articles/14geocities.html
[SOURCE: Washington Post (G1), AUTHOR: Robert O'Harrow]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/14/065l-081498-idx.html
[SOURCE: Wall Street Journal (), AUTHOR: ]
http://wsj.com/

=======
MERGERS
=======

OHIO PUC SETS DEADLINES FOR HEARINGS ON AMERITECH-SBC MERGER
Issue: Mergers
TelecomAM reports, The Ohio Public Utilities Commission (PUC) has set a
September 3 due date for public comments on the proposed merger of Ameritech
into SBC Communications. The PUC also set an August 26 date for public
presentations by opponents of the merger, similar to the opportunity
afforded last month to SBC and Ameritech. The PUC also set an October 21
date for a prehearing conference on the merger docket.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

========
INTERNET
========

Filmmaker SUES ISP OVER TERMINATION OF EMAIL SERVICE
Issue: Consumer Protection
Last summer, Peter Hall, a New York-based independent filmmaker, turned on
his computer to check his email only to find that his password was refused.
This was a huge problem for Hall as he was preparing to premier his first
feature film and coordinating much of the promotion by email. When he
contacted his Internet service provider (ISP), Earthlink Network Inc., he
was told that the company had closed his account because he had "illegally
accessed another providers service." Hall said that the accusation was
complete gibberish. Six days after the email issue began, Hall was given the
full account when a security official at UUNET Technologies Inc., which
carries network traffic to many ISPs, told him that it had mistakenly told
Earthlink that he was a spammer. The mixup was evidently due to a false
tracking number on the real spammers output. Earthlink tried to make up with
Hall by offering him six months of free service, but by this time Hall said,
"I had already spent more money than the offer was worth on telephone calls,
letters" and trying to find a savvy lawyer to represent him. Now, almost a
year later, Peter Hall has gone to court to seek over $7 million in damages
from Earthlink, claiming injuries to his film business and mental health
stemming from the allegedly wrongful disruption of email service. Online and
legal experts say that this novel case could help establish much needed
rules for ISP's who want to shut down an email account -- which can be a
lifeline for many small entrepreneurs. Andrew Grosso, a lawyer for Hall,
said he believed the case was legally significant because it could result in
a ruling that ISPs have a legal duty to give a customer notice of an
impending account termination and a reasonable opportunity for the customer
to respond to such charges. Ken Bass, a Washington-based lawyer who has a
large Internet-related practice, said, "This is a new area of law, but I
have no doubt that courts will find that ISPs have some liability for the
erroneous, intentional blocking of email."
[SOURCE: New York Times (CyberTimes), AUTHOR: Carl S. Kaplan]
http://www.nytimes.com/library/tech/98/08/cyber/cyberlaw/14law.html

VATICAN STEPS UP DIGITAL EFFORTS WITH PAPAL ADDRESS
Issue: Internet Use
Since, Easter 19997, the Vatican has been online. For the first time, on
Saturday, an address by Pope John Paul II will be broadcast over the
Internet. This transmission is the beginning of a larger effort to deliver
the Pope's message over the Internet in real-time video and audio each
Sunday and Wednesday. "We can reach people in places like China where loyal
Catholics have been forced underground," said David Early, spokesman for the
U.S. Catholic Conference. "If people have a modem, they have direct contact
with the Pope." Critics argue, however, that the Catholic church could be
doing much more to appeal to some 1 billion members around the world. "One
problem is that the diffuse, grass-roots nature of the Internet offers a
stark contrast to the top-down, hierarchical management structure of the
church, according to Jeff Rutenbeck, director of Digital Media Studies at
the Univ. of Denver." Rutenbeck, who studies how large institutions adapt to
new media, said the Catholic church has not yet determined how to maintain
sufficient control over its directives and content on the Internet. "They're
just getting a good grasp on how malleable and uncontrollable digital
content is," Rutenbeck said. "That's a large basis for their reservation."
Brother Mary Aquina Woodworth, a Santa Fe monk, said the church "is losing
the battle badly" in communicating its message via the Internet. The bishops
"have a lot of legitimate concerns" about making sure the message they
deliver is keeping with church doctrine, Woodworth said. "But if the church
can't figure out how to communicate its word in the digital age, the word
will disappear."
[SOURCE: New York Times (CyberTimes), AUTHOR: Matt Richtel]
http://www.nytimes.com/library/tech/98/08/cyber/articles/14vatican.html

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

...and we are outta here. Enjoy your weekend!

Communications-related Headlines for 8/13/98

UNIVERSAL SERVICE
Fishman to Resign as SLC Head in Reorganization (TelecomAM)

MERGERS
AFL-CIO, Church Groups, Urge FCC Reject WorldCom-MCI Merger
(TelecomAM)

TELEPHONY/REGULATION
Phone Wars Leave FCC in a Political Combat Zone (NYT)
FCC Audit Cites Bell's Lost Items (WP)

FIRST AMENDMENT
Home Web Sites Thrust Students Into Censorship Disputes (Circuits)

E-COMMERCE
Movie Retailer Offers Personalized Catalog on Web (WSJ)

OWNERSHIP/MERGERS
MCI to Sell Concert Stake to Partner (WSJ)
British Telecom to Acquire MCI's Stake in Joint Venture (NYT)

LIFESTYLE
A Tour of Tourist Traps Without a "How Far Is It?'

=================
UNIVERSAL SERVICE
=================

FISHMAN TO RESIGN AS SLC HEAD IN REORGANIZATION
Issue: Universal Service
Schools and Library Corp CEO Ira Fishman is expected to announce his
resignation effective August 28. Mr. Fishman said that he's leaving with
some regret at not seeing the program through, but with pride in having set
up operations from scratch. Since he accepted the position, Mr. Fishman has
been the target of congressional critics who had attacked his salary level
($200,000) and his administration of the program. The overarching issue, he
said, is that the program will survive to allow schools and libraries to
have access to technology and telecom at a relatively early stage of its
development -- contrary to the history of education in which the classroom
usually lags behind. The Internet as we know it today is only four years
old, Mr. Fishman said: "People know that over the long run this will have a
huge beneficial impact." [For more info on the SLC see
http://www.slcfund.org/]
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

=======
MERGERS
=======

AFL-CIO, CHURCH GROUPS, URGE FCC REJECT WORLDCOM-MCI MERGER
Issue: Mergers
A coalition led by the AFL-CIO, the National Council of Senior Citizens
(NCSC) and the National Council of Churches (NCC) is urging the Federal
Communications Commission to reject the proposed WorldCom merger with MCI.
The coalition said the merger would reduce rather than expand competition
and raised fears that the new company would "redline" minority communities.
MCI has rejected arguments that the merger would reduce its local market
presence: "MCI's commitment to the residential market is unwavering," said
spokeswoman Jamie DePeau who cited the letter from MCI Chairman Bert Roberts
and WorldCom President Bernard Ebbers to FCC Chairman Kennard in which
executives said: "Local market entry is a driving force behind our merger."
Executives at the two companies are working hard to close the deal by September.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

====================
TELEPHONY/REGULATION
====================

PHONE WARS LEAVE FCC IN A POLITICAL COMBAT ZONE
Issue: FCC/ Local Telephone
After an adversarial relationship with former Federal Communication Chairman
Reed Hunt, the local Bells are beginning to win some battles at the FCC.
Last week, under current chairman William Kennard, the FCC threw a huge bone
in the Bell's direction by allowing them to compete in the provision of data
services without having to resell their local data networks. The Bells
visible lobbying presence in Washington and Chairman Kennard's political
vulnerability may be factors influencing this recent victory. William
Kennard was appointed to the commission's top post without strong backing
from either Congress or the White House. As a result, Congress seems to have
greater influence now at the FCC than in recent years.
[SOURCE: New York Times (D1,D5), AUTHOR: Seth Schiesel]
http://www.nytimes.com/library/tech/98/08/biztech/articles/13data.html

FCC AUDIT CITES BELL'S LOST ITEMS
Issue: Local Telephone
Preliminary findings of an Federal Communications Commission audit shows
that the regional Bell companies cannot locate almost $5 billion worth of
equipment that is claimed on their books. The audit, which was the largest
of it's type since the 1984 AT&T divestiture, found that 10 percent of
reported equipment could not be located in random spot checks of Bell
facilities in each state. These results fuel long-time allegations that the
Baby Bells report inflated costs in order to justify higher prices for
consumers and access charges for long-distance carriers. If the final audit
report supports these original findings, it could have an effect on local
rates. According to one congressional source, "we would argue there ought
to be dollar-for-dollar reductions" in the local charges. [Let me see, just
where did we leave that central office, anyway?]
[SOURCE: Washington Post (E1), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/13/161l-081398-idx.html

===============
FIRST AMENDMENT
===============

HOME WEB SITES THRUST STUDENTS INTO CENSORSHIP DISPUTES
Issue: First Amendment
Sean O'Brian is a 17-year-old baritone horn player from Westlake High
School, near Cleveland, that had a beef with a high-school band instructor,
Raymond Walczuk. So last spring, O'Brian set up a home-based Web site that
insulted Walczuk. When word of the site got around, school administrators
suspended O'Brian for 10 days, told him to remove the Web site and
threatened to expel him. O'Brian and his parents took action, accusing the
school of violating his right to free speech and suing the school district
for $550,000. Legal experts say that school censorship of student Web sites
created outside schools is increasing. Ann Beeson, an American Civil
Liberties Union lawyer in New York, said, "These Web cases have become
somewhat analogous to the student newspaper cases of the past, where the
schools try to say, 'You can't talk about condoms in the school newspaper.'
Except that with Web sites, people tend to become more alarmed because
people outside the school can find out about them." While the U.S. Supreme
Court ruled in 1988 that schools could control a school newspaper but
students that published outside school were covered by the First Amendment
right to free speech, it has yet to rule on a case involving school
censorship of a Web site set up outside school. Civil libertarians say that
if such a case ever does go to court, they expect students, and the First
Amendment, to prevail.
[SOURCE: New York Times (E9), AUTHOR: Terry McManus]
http://www.nytimes.com/library/tech/98/08/circuits/articles/13cens.html

=================
OWNERSHIP/MERGERS
=================

MCI TO SELL CONCERT STAKE TO PARTNER (WSJ)
BRITISH TELECOM TO ACQUIRE MCI'S STAKE IN JOINT VENTURE (NYT)
Issue: Ownership/Mergers
British Telecommunications PLC announced yesterday that it has agreed to
purchase MCI Communications Corp.'s 24.9% stake in their Concert
Communications Services joint international venture for $1 billion in cash.
The move will effectively server all ties between the one-time merging
partners. With BT's agreement to buy Concert, the British communications
giant will be free to move forward with plans to for a $10 billion joint
venture with AT&T Corp.
[SOURCE: Wall Street Journal (A3,A8), AUTHOR: Stephanie N. Mehta]
http://wsj.com/
[SOURCE: New York Times (D4), AUTHOR: Seth Schiesel]
http://www.nytimes.com/yr/mo/day/news/financial/mci-british-telecom.html

==========
E-COMMERCE
==========

MOVIE RETAILER OFFERS PERSONALIZED CATALOG ON WEB
Issue: E-Commerce
Big Star [we're not talking about the band or store baby, we're talking...]
Entertainment Inc., a new videotape retailer on the Web is personalizing
video information to each users taste. The Big Star catalog highlights those
movies you're likely to buy and doesn't waste time on those titles that
wouldn't be of interest. Some direct marketers call this the perfect
catalog, one that knows who you are. "When you come to our site, you can see
it customize itself," says David Friedensohn, one of the co-founders of Big
Star. "We're getting one-to-one with people." Friedensohn and David
Levitsky, the other co-founder, are confident that their site can't be
matched. Big Star, which went online in May of this year, wrote its own
system focusing the end product on the consumer by weaving together several
different databases -- ones that draw from a multitude of information on the
user in order to deliver the best possible product. "For e-commerce, the
core competency is systems integration," says Friedensohn. If this on-line
movie catalog approach works, Big Star could become the new Amazon.com of
videos.
[SOURCE: Wall Street Journal (B7), AUTHOR: Thomas E. Weber]
http://wsj.com/

=========
LIFESTYLE
=========

A TOUR OF TOURIST TRAPS WITHOUT A 'HOW FAR IS IT?'
Issue: Lifestyles [of the not so famous]
Still contemplating how to spend your vacation while staring at the pile of
papers overflowing from your in-box? Well get ready for the World's Largest
Replica Cheese while gnawing on a Stuckey's pecan log? Just "steer your Web
browser to the Roadside America Web site and enjoy a fun-filled trip that
may take you not only down memory lane [uh,ummm, not to allude to age here
or anything], but to more than 6,000 of the most popular highway attractions
from all 50 states." This site is an interactive multimedia companion guide
to the books "Roadside America," published in 1986 and "New Roadside
America," in 1992 (both Simon & Schuster). "The authors, Doug Kirdy, Ken
Smith and Mike Wilkins, continue to add new attractions to their database,
which also includes pages on tourism news and travel tips." Now, you can
finally see Rock City and America's largest bovine statues from the comfort
of your own desktop.
[SOURCE: New York Times (E11), AUTHOR: J.D. Biersdorfer]
http://www.nytimes.com/library/tech/98/08/circuits/articles/13road.html

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Communications-related Headlines for 8/12/98

UNIVERSAL SERVICE
New House Bill Would Use Entire Excise Tax to Pay for
E-Rate (TelecomAM)

HEALTH
Medicine at the Click of a Mouse: Utility vs. Privacy (NYT)

LOCAL TELEPHONE/ LABOR
Bell Atlantic, Union Reach Agreement (WP)
Bell Atlantic in Settlement with CWA (WSJ)
Bell Atlantic Reaches Pact with Union (NYT)

ED TECH
Schools Accused of Software Piracy (CyberTimes)

CABLE
Comcast to Buy Control Now of Cable Firm (WSJ)

SPECTRUM/PUBLIC SAFETY
Tristani Says New Spectrum Will Ease Public Safety Concerns
(TelecomAM & FCC)

=================
UNIVERSAL SERVICE
=================

NEW HOUSE BILL WOULD USE ENTIRE EXCISE TAX TO PAY FOR E-RATE
Issue: Universal Service/Legislation
Rep. Ron Klink (D-PA) and seven cosponsors introduced legislation last week
(HR-4474) to use the 3 percent phone excise tax to finance the e-rate and
associated programs. The bill would create the Telecommunications Trust
Fund, with rules to be drawn up by the Federal Communications Commission,
and funds to be appropriated for the next six years by Congress. Rep Klink
said that the legislation will "provide honesty to phone bills" because the
financing plan will provide a means "more explicit and stable" than the
current method. House Telecom Subcommittee Chairman Billy Tauzin (R-LA) and
Senate Communications Subcommittee Chairman Conrad Burns (R-MT) have
introduced bills to use half of that tax to finance the e-rate. Other
telecommunications bill introduced as Congress began the August recess: 1)
HR-4427 by Crime Subcommittee Chairman Bill McCollum (R-FL) to ban Internet
gambling, 2) HR-4493 by Rep. Donald Payne (D-NJ) requiring itemized billing
by wireless carriers, and 3) HR-4461 by Rep. Nathan Deal (R-GA), with
Speaker Newt Gingrich (R-Ga), providing for a Web site with information on
technology-related assistance for individuals with disabilities.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

======
HEALTH
======

MEDICINE AT THE CLICK OF A MOUSE: UTILITY VS. PRIVACY
Issue: Health
Pushed forward by a growing popularity of the Internet and shifting
economics in health care, the medical industry in "rapidly" going online.
The Internet is already a popular place to search for information about
medicine and treatments, but now increasing number of doctors and insurers
are using the Internet to provide patients and members with personal medical
information, ranging from lab results to payment records. "A potential
revolution" is brewing in "how the consumer interacts with the health plan
and, down the road in a different way, with the providers of care," said Jim
Hudak, a managing partner with Anderson Consulting. This move has the
potential to benefit all parties involved, with reductions in mountains of
paperwork and long waits on clogged phone lines. But it also raises the
issue of privacy of such personal information, and this issue hits the head
on the nail in the broader debate about privacy and security on the
Internet. There are varying views on this issue, but where managed care
companies are concerned, they are working to safeguard members' privacy and
say that their systems can protect electronic information. A number of
experts on privacy issues warn that a determined hacker could probably
obtain access into protected records. But several specialists point out that
most interlopers would have little interest in medical insurance claims. The
economic payoff from breaking into health care records is "a lot less than
for banks," said Paul Clayton, chairman of the dept. dealing with
computerized medical information at Columbia.
[SOURCE: New York Times (D1,D8), AUTHOR: Milt Freudenheim]
http://www.nytimes.com/library/tech/98/08/biztech/articles/12healthcare-int
ernet.html

======================
LOCAL TELEPHONE/ LABOR
======================

BELL ATLANTIC, UNION REACH AGREEMENT(WP)
BELL ATLANTIC IN SETTLEMENT WITH CWA (WSJ)
BELL ATLANTIC REACHES PACT WITH UNION (NYT)
Issue: Local Telephone/ Labor
The two-day-old strike against Bell Atlantic came to an end Tuesday when a
tentative agreement was reached between the company and the Communication
Workers of America (CWA). This was not a traditional battle over wages or
benefits. Instead, the strike centered on the future of CWA members in
high-tech and other job growth areas of the company. As part of the
settlement, Bell Atlantic has agreed to give the CWA the opportunity
unionize current and future non-union subsidies. The proposed contract also
ensures that installation, maintenance and repair of data networking
and Internet services goes to CWA members. Larry Mancino, a vice president
of District One of the CWA views this as "a major victory" for the union.
"There is no contract in this industry that has those kind of protections."
Bell Atlantic vice president for human relations, Don Sacco, also seemed
satisfied with the settlement; "The contract gives Bell Atlantic the
flexibility to manage its business in an increasingly competitive market."
[SOURCE: Washington Post (A1, A10), AUTHOR: Frank Swoboda]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/12/091l-081298-idx.html
[SOURCE: Wall Street Journal (A2), AUTHOR: Stephanie Mehta]
http://wsj.com/
[SOURCE: New York Times (T), AUTHOR: Terry Pristin ]
http://www.nytimes.com/yr/mo/day/news/financial/phone-strike.html

=======
ED TECH
=======

SCHOOLS ACCUSED OF SOFTWARE PIRACY
Issue: EdTech
The Los Angeles Unified School District possibly faces paying almost $5
million to settle accusations of software piracy brought by the Business
Software Alliance (BSA), a coalition of software publishers based in
Washington D.C. Los Angeles's difficulties began two years ago, when the
coalition, acting on a tip to their anti-piracy phone line, found 1,400
copies of unlicensed software in use. BSA is asking that the school district
pay $300,000 -- the approximate value of the software copies -- to the
group's anti-piracy fund, replace any unlicensed software with licensed
copies, and that the district establish a group to train staff members in
copyright regulations -- efforts that the LA school district say would cost
about $4.5 million. David N. Tukofsky, one of the seven members of the
district school board, says he is unhappy with the way BSA has handled the
situation. He said with the millions of dollars software companies spend on
promoting the educational value of their products, he felt they could afford
to help a poor urban school district like Los Angeles train staff members in
copyright do's and don'ts. "They could have said, 'We don't want the
$300,000,'" Tukofsky said, and instead given "an offer of training,
reconciliation and understanding." Robert M. Kruger, vice president of BSA,
rebutted the criticism saying that callers are not rewarded for offering
tips to the phone line and that software makers often help school districts
by offering them software at reduced costs. Furthermore, he said, the
proposed solution is less an attempt to collect money than it is an effort
to encourage the school district "to eliminate reliance on pirated software."
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
http://www.nytimes.com/library/tech/98/08/cyber/education/12education.html

======
MERGER
======

COMCAST TO BUY CONTROL NOW OF CABLE FIRM
Issue: Merger
Comcast Corp. is expected to announce as early as today plans to buy a
controlling stake in Denver-based Jones Interable Inc. "The speeded-up
purchase by the nation's fourth-largest cable company would signal the end
of Glenn Jones's reign as chairman of Jones Intercable, a company he founded
more than 30 years ago. Selling all of its Jones Intercable stake will be
BCI Telecom Holding Inc. of Canada."
[SOURCE: Wall Street Journal (B7), AUTHOR: Leslie Cauley]
http://wsj.com/

======================
SPECTRUM/PUBLIC SAFETY
======================

TRISTANI SAYS NEW SPECTRUM WILL EASE PUBLIC SAFETY CONCERNS
Issue: Spectrum
The Federal Communications Commission's recent decision to auction an
additional 24 MHz of public safety spectrum will improve wireless
communications among police, fire fighters,
paramedics and other public safety officials, FCC Commissioner Gloria
Tristani said August 10. Speaking at an annual meeting of public safety
communications officials, Commissioner Tristani said the "safety of life and
property often cling to a thin thread" of a consistent, accurate and
reliable communications system. "Such a system must be built from the
building blocks of adequate resources and of standardized tools and
procedures." Commissioner Tristani said the new spectrum will allow public
safety officials to meet their three main concerns: 1) inadequate amounts of
frequencies, 2) interoperability, and 3) flexibility to update with new
technology. [See the entire speech at
http://www.fcc.gov/Speeches/Tristani/spgt810.html and a press release at
http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1998/nrmc8049.html]
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

Communications-related Headlines for 8/11/98

SPECTRUM
FCC Adopts Auction Procedures for Commercial Broadcast Licenses (FCC)

LOCAL TELEPHONE/LABOR
Appeals Court Sides With FCC in Case of Bells' Networks (WSJ)
End to Bell Atlantic Strike Near, Both Sides Say (WP)
Effects of Bell Atlantic Strike Ripple From Maine to Virginia (NYT)
Bell Atlantic, Union Keep Talking As Walkout Enters a Second Day (WSJ)

CABLE
News Corp., TCI Affiliate Are in Talks Seeking to Acquire Primestar
Majority (WSJ)

SECURITY
Fix for Some Email Security Problems is Reported (NYT)

PERSONAL COMPUTING
The Melding of Mind With Machine May Be the Next Phase of Evolution
(NYT)
========
SPECTRUM
========

FCC ADOPTS AUCTION PROCEDURES FOR COMMERCIAL BROADCAST LICENSES
Issue: Spectrum
"The FCC has adopted rules to implement its authority to auction commercial
analog broadcast licenses. In general, the Balanced Budget Act of 1997
requires the Commission to use auctions to award commercial broadcast
licenses when there are mutually exclusive applications. One exception to
this requirement is for mutually exclusive applications for full service
stations filed before July 1, 1997. The FCC said there are only about 130
such pending cases involving commercial broadcast applicants in which the
Commission could use either comparative hearings or auctions to award the
license. These pending cases were frozen after the DC Circuit invalidated
the FCC's central criterion for deciding initial licensing cases in Bechtel
v. FCC. The Commission decided that auctions would be fairer and more
efficient than comparative hearings for the pending cases."
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1998/nrmm8025.html

=====================
LOCAL TELEPHONE/LABOR
=====================

APPEALS COURT SIDES WITH FCC IN CASE OF BELLS' NETWORKS
Issue: Competition
The U.S. Court of Appeals in St. Louis dealt a blow to the Baby Bells by
upholding a Federal Communications Commission decision forcing the Bells to
allow would-be-rivals access to their networks' full features, functions and
capabilities. This decision would allow rivals to enjoy the large networks'
economies of scale. "The Bells were troubled by the judgement." An Ameritech
spokesman said the company "is strongly considering asking the court to
reconsider."
[SOURCE: Wall Street Journal (B6), AUTHOR: WSJ Staff Reporter]
http://wsj.com/

END TO BELL ATLANTIC STRIKE NEAR, BOTH SIDES SAY (WP)
EFFECTS OF BELL ATLANTIC STRIKE RIPPLE FROM MAIN TO VIRGINIA (NYT)
BELL ATLANTIC, UNION KEEP TALKING AS WALKOUT ENTERS A SECOND DAY (WSJ)
Issue: Local Telephone/ Labor
Representatives from both the Communication Workers of America (CWA) and
Bell Atlantic Corp. say that they are close to an agreement that would put
an end to the two day telephone strike. While the walkout has not had a
great effect on most customers, there are delays in services such as
directory assistance, phone repairs and new installations. Over 73,000 CWA
union members decided to strike due to disputes over job-security and the
future of labor at Bell Atlantic. The union is concerned about the
increasing number of non-union jobs at Bell Atlantic's newer subsidiaries.
The majority of the negotiations reportedly center on the ability to
unionize these new operations.
[SOURCE: Washington Post (D1), AUTHOR: Frank Swoboda and Stephanie Stoughton]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/11/115l-081198-idx.html
[SOURCE: New York Times (A19), AUTHOR: Terry Pristin]
http://www.nytimes.com/yr/mo/day/news/financial/bell-strike.html
[SOURCE: Wall Street Journal (B6), AUTHOR: Stephanie N. Mehta]
http://wsj.com/

=====
CABLE
=====

NEWS CORP., TCI AFFILIATE ARE IN TALKS SEEKING TO ACQUIRE PRIMESTAR MAJORITY
Issue: DBS
News Corp. and a Tele-Communications Inc. affiliate are in preliminary talks
aimed at acquiring a majority of Primestar Partners LP. People familiar with
the matter say the move would reduce the stake held by cable companies to a
minority of the direct-broadcast satellite service.
[SOURCE: Wall Street Journal (B5), AUTHOR: John Lippman & Leslie Cauley]
http://wsj.com/

========
SECURITY
========

FIX FOR SOME EMAIL SECURITY PROBLEMS IS REPORTED
Issue: Security
Officials at Sendmail, the company that makes the software that manages the
majority of mail systems, plans to announce today that it has developed a
simple and free fix for a security vulnerability discovered in email
programs made by Microsoft Corp. and Netscape Communications Corp. Eric
Allman, a founder of Sendmail, said yesterday that the developed fix would
automatically trap email messages carrying dangerous files that could
exploit the vulnerability.
[SOURCE: New York Times (D5), AUTHOR: John Markoff]
http://www.nytimes.com/library/tech/98/08/biztech/articles/11bug.html

==================
PERSONAL COMPUTING
==================

THE MELDING OF MIND WITH MACHINE MAY BE THE NEXT PHASE OF EVOLUTION
Issue: Lifestyles
As we continue to work towards accelerating our own evolution, some
scientists are looking at how to meld machines with living cells. For
example, researchers at British Telecommunications P.L.C. have been working
on a project, somewhat ominously dubbed "Soul Catcher," that seeks to
develop a computer that can be implanted in the brain to complement human
memory and computational skills. In addition, the "Soul Catcher' would also
enable the gathering of extrasensory information -- in this case, data
transmitted by wireless networking. While this field may seem a little far
fetched, it is really just an extension of devices like pace makers,
neurostimulators, which send electric charges through nerves to alleviate
certain types of pain, and implants that simulate hearing for the deaf.
Peter Cochrane, the head of research at British Telecom, a futurist and a
specialist in "human-computer interfaces," believes that this type of
research is merely an extension of the evolutionary process. He says, in
fact, the future of the human species depends on our continuing and
expanding ability to process information. If not, he wrote in a 1996 column
for the Daily Telegraph in Britain, "systems more efficient at information
processing may supplant us." So, in some ways, the increasing interest in
the Internet already suggests that humans are on the threshold of a major
evolutionary step as information-processing organisms. Who knows, "if these
endeavors ever realize their goals, the personal computing will become very
personal indeed."
[SOURCE: New York Times (C6), AUTHOR: Rob Fixmer]
http://www.nytimes.com/library/tech/98/08/cyber/compcol/11compcol-fixmer...

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

Communications-related Headlines 8/10/98

ELECTRONIC COMMERCE
Web Concern Gets Patent For Its Model of Business (NYT)
Affiliate Networks: Letting Other Sites Do Your Marketing (NYT)

UNIVERSAL SERVICE
Technology Will Kill Telecom Taxes (WSJ)

INTERNET
Privacy and the States (WP)
A New Battle Shapes Up Over Internet Smut (WP)

TELEVISION/CABLE
Television News Spinning Out of Control (ChiTrib)
Local News Gets Rocky Review (B&C)
Patents: (NYT)
Getting More Promotional Time From TV
Using the Set to Check On Fido's Whereabouts
Taking TV 3-D From Inside the Set
With Dish on the Plane, Fliers Can See TV Live
Opposites Detract in Video Inquiry (B&C)

CAMPAIGNS/FREE AIRTIME
Daniels Backs Free Airtime (B&C)

ED TECH
Internet Camp Helps Children Expand Skills (ChiTrib)

FCC
FCC Launches Inquiry, Proposes Actions to Promote the
Deployment of Advanced Telecommunications Services By
All Providers (FCC)
FCC Announces Significant Progress on 1998 Biennial Review (FCC)
Commission Proposes to Reform International Settlements Policy (FCC)
Commission Revises Program Access Enforcement Process (FCC)
FCC Gets Tough on Program Access (B&C)

RADIO
Top 10 Metros Control 23% of U.S. Buying Power (B&C)
Radio News: Many Sizes Fit All (B&C)

LOCAL/LONG-DISTANCE
Phones Function on the Day (WP)
FCC Allows Telmax to Operate in U.S. Through a Joint Venture
With Sprint (WSJ)

SATELLITE
Deals to Move Global Positioning Technology Toward Everyday Use (NYT)

===================
ELECTRONIC COMMERCE
===================

WEB CONCERN GETS PATENT FOR ITS MODEL OF BUSINESS
Issue: Electronic Commerce
Priceline.com will receive a patent today for "buyer-driven commerce."
Priceline.com is most well-know for allowing consumers to name their own
price for airline tickets. The "reverse auction" model used by Priceline.com
"is such a narrowly specific approach to online business that analysts said
few other Internet commerce companies were likely to be significantly
restricted by the patent," Lewis reports. But it is an example of the Patent
Office's willingness to protect a business model. In the Priceline model,
buyers submit a bid, known as a "conditional purchase offer," to buy goods
or services -- airline tickets or automobiles, for example -- from unknown
sellers at a certain price, and they guarantee the offer with a credit card.
Priceline presents the offers to the sellers, who then have the option of
either fulfilling or rejecting the bids, or making a counteroffer. Priceline
then completes the transaction.
[SOURCE: New York Times (D1,D5), AUTHOR: Peter Lewis]
http://www.nytimes.com/library/tech/98/08/biztech/articles/10priceline.html

AFFILIATE NETWORKS: LETTING OTHER SITES DO YOUR MARKETING
Issue: Electronic Commerce
Traditional "word-of-mouth" referrals are being transformed on the Web into
"word-of-mouse" referrals by "affiliate networks." The most notable example
is probably Amazon.com Associates Program which recently signed up its
100,00th affiliated website. For any purchase that results from a link on
their Website, an affiliate earns 15% on the sale. Although Amazon.com's
network was the first and is the largest, hundreds more have cropped up on
the Internet. There's little cost to affiliates which only need to maintain
the link offered by the retailer.
[SOURCE: New York Times (D3), AUTHOR: Evan Schwartz]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/10view.html

=================
UNIVERSAL SERVICE
=================

TECHNOLOGY WILL KILL TELECOM TAXES
Issue: Telephony
For over 2 decades the FCC has taxed basic telephone services in order to
subsidize "universal service" programs that help provide telecommunications
to those who would not otherwise have access. Mr. Goldman believes that
FCC's current policies to aid the undeserved are unfair because they force
telephone users to bear "the discriminatory burden of universal service,
E-rate, and other telecommunications social programs." Current phone taxes
are contingent on distinction between "basic" and "enhanced" services; the
later of which is exempt from government regulation. New technologies,
however, are blurring the line between these two categories of service,
disturbing the regulatory system as we know it. Sprint's Integrated
On-demand Network (ION), is an example of a service that converts all voice and
data into digital 'bits' which are considered enhanced service -- and
therefore exempt from regulation and taxation. Goldman hails the new
technology as a way to get around taxes that he believes make no economic
sense in the first place.
[SOURCE: Wall Street Journal (A14), AUTHOR: Ira Goldman]
http://wsj.com/

========
INTERNET
========

A NEW BATTLE SHAPES UP OVER INTERNET SMUT
Issue: Internet/Content
The debate continues over how to protect kids and free speech from Internet
smut. Two recent bills, intended to shelter children from harm online, have
provoked vocal challenges from civil liberties advocates who claim the
measures violate the First Amendment. One bill is a revision of the
Communications Decency Act (CDA) that was struck down by the Supreme Court in
1996. Their ruling concluded that the Internet is "the most participatory
form of mass speech yet developed," and therefore deserving of "the highest
protection from governmental intrusion." The other bill will require schools
and libraries receiving E-rate discounts to install blocking software.
Supporters of the bills are confident that they will withstand
constitutional scrutiny, while others, such as Sen. Patrick Leahy (D-Vt) feel
the legislation would place "an unacceptably heavy burden on protected
speech." Sen. Leahy advised "that in a rush to protect our children, we
should not unnecessarily chill the freedom of expression that occurs
online

Communications-related Headlines for 8/7/98

REGULATION
FCC Proposes Limited Section 706 Relief for Bell Companies
(TelecomAM)
Deployment of Advanced Telecommunications Services By All
Providers (FCC)
Rules for Bells' Data Lines Eased (Chicago Tribune)
FCC Grants 24 MHz of Wireless Spectrum for Public Safety Use (TelecomAM)
Public Safety Radio Spectrum (FCC)
FCC Proposes to Deregulate International Call Market (TelecomAM)
FCC Offers Plan for Competition in Video Services (WSJ)

INTERNET
Nonprofit ISPs in Danger (CyberTimes)
Professor Protests Copyright Law (CyberTimes)

LEGISLATION
House Approves Campaign Finance Bill (WP)
House Approves Shays-Meehan Bill on Campaign Finance Reform
(NYT)
House Clears Bill to Revamp Campaign Finance (WSJ)

House Telecom Subcommittee Approves Bill on Slamming and Spamming
(TelecomAM)
Privacy Issues in Antispam Bill (CyberTimes)
House Passes Commerce Spending Bill Without Internet Add-Ons
(TelecomAM)

SECURITY
Another E-mail Security Problem is Discovered, This One In Eudora (NYT)

ANTITRUST
U.S. Judge Orders Microsoft to Turn Over Operating System Code (NYT)
Microsoft Moves for a Dismissal (WP)

JOURNALISM
Boston Globe Columnist Refuses to Resign (ChiTrib)
NU Journalism School Gets $20 Million Grant (ChiTrib)

==========
REGULATION
==========

FCC PROPOSES LIMITED SECTION 706 RELIEF FOR BELL COMPANIES
Issue: Bandwidth/Access
The Commission initiated two proceedings intended to create marketplace
conditions conducive to the nationwide deployment of advanced
telecommunications services, such as high-speed Internet access and video
telephony, by all providers. First, the Commission commenced an inquiry into
the current availability of advanced telecommunications services and what
actions the Commission can take if it determines that these services are not
being deployed to all Americans in a reasonable and timely manner. Second,
the Commission proposed actions to encourage all wireline providers, both
incumbent local telephone companies and their competitors, to provide
advanced telecommunications services. Both proceedings follow Congress's
blueprint for stimulating telecommunications competition and bringing the
benefits of technology to all sectors of American society. (See summary at
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8058.html)
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/
DEPLOYMENT OF ADVANCED TELECOMMUNICATIONS SERVICES BY ALL PROVIDERS
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8057.html
RULES FOR BELLS' DATA LINES EASED
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808070217,00.html

FCC GRANTS 24 MHZ OF WIRELESS SPECTRUM FOR PUBLIC SAFETY USE
Issue: Spectrum
At its open meeting August 6, the FCC licensed 24 MHz of wireless spectrum
for public safety use, including a block set aside for development of
interoperable networks so emergency workers can communicate on the same
frequency. FCC Wireless Bureau Chief Daniel Phythyon said this doubles the
amount of spectrum available to public safety entities and "takes them into
the 21st century." The spectrum was reallocated from TV channels 63, 64, 68,
69. It can be used for voice, data, image and video.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

PUBLIC SAFETY RADIO SPECTRUM
Issue: Spectrum
"The Commission adopted rules for licensing the largest block of spectrum
ever allocated at one time for public safety services. In a document that
includes both a First Report and Order (First Report) and a Third Notice of
Proposed Rulemaking (Third Notice), the Commission establishes service rules
for licensing 24 megahertz (MHz) of spectrum in the 764-806 MHz band
(referred to as the 700 MHz band), establishes a band plan for use of this
spectrum, seeks comment on how to license the remaining portion of the
public safety spectrum (8.8 MHz) and on additional proposals to implement
effective public safety nationwide interoperability. The First Report also
announces the Commission's plan to establish a National Coordination
Committee that will seek accreditation from the American National Standards
Institute (ANSI) and be charged with, among other things, developing
national standards for operation and use of the spectrum allocated for
nationwide interoperability."
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Wireless/News_Releases/1998/nrwl8033.html

FCC PROPOSES TO DEREGULATE INTERNATIONAL CALL MARKET
Issue: International
The Federal Communications Commission moved to deregulate the international
phone market. The
rules would give U.S. long distance carriers more flexibility in reaching
rate agreements with foreign telcos. The Commission proposed two rule
changes: 1) U.S. carriers could make pricing deals with nondominant foreign
carriers without getting prior approval from the FCC; and 2) Rules would be
further eased for negotiations in countries considered competitive.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

FCC OFFERS PLAN FOR COMPETITION IN VIDEO SERVICES
Issue: Cable
At an open meeting yesterday, the Federal Communication Commission proposed
a plan intended to encourage competition in the provision of multi-channel
services. New rules would stiffen penalties for cable operators who refuse
competitors access to programming. With cable rates raising at seven times
the rate of inflation, the FCC hopes that increased competition will provide
rate relief for the cable consumer. Critics, however, claim that rate caps
are the only way to control soaring cable prices.
[SOURCE: Wall Street Journal (B7), AUTHOR: John Simons]
http://wsj.com/

========
INTERNET
========

NONPROFIT ISPS IN DANGER
Issue: Community Networks
Oregon Public Networking, which provides Internet access to about 12,000
people in rural southwestern Oregon, about 5,000 of whom meet federal
poverty standards, is being investigated by the Internal Revenue Service and
may lose its tax-exempt status. The case could determine whether as many as
500 of the nation's community networks that provide Internet access to the
poor can keep their nonprofit status. Marc Owens, director of the IRS's
exempt organizations division, said that "the key question with regard to
any Internet service provider is, 'What are you doing that is any different
from the America Onlines of the world?'" Owens said if a nonprofit ISP
cannot demonstrate how they are different from commercial ISPs then they are
at risk for losing their tax-exempt status. Richard Civille, a member of the
Colorado-based Association for Community Networking's board, said that
without tax-exempt status, community networks could cease to exist. "We're
pretty determined not to see this happen," Civille said. "We cannot have a
healthy information economy without equal access to the Net. The role of
community networks in helping to promote full equity is growing. You kill
community networks, and you create more income disparity."
[SOURCE: New York Times (CyberTimes), AUTHOR: Rebecca Fairley Raney]
http://www.nytimes.com/library/tech/98/08/cyber/articles/07tax.html

PROFESSOR PROTESTS COPYRIGHT LAW
Issue: Copyright
I. Trotter Hardy, a law professor at the College of William and Mary School
of Law in Williamsburg, VA, recently completed a government-financed study
on the problems of copyright protection in the digital age. He thinks that
the new law that Congress is poised to pass that would protect the owners of
music, art and prose from duplication on the Internet, is a big mistake. In
a recent interview, Hardy said that "the rush to legislation concerns me."
And he believes that the current copyright law, which is written in general
terms, is "broad enough" to combat today's Internet copyright pirates as
well as unforeseen malicious people around the technology bend. "An amended
copyright law creates complexity and invites further amendments" from
special interest groups, Hardy said. "After a point, it becomes very hard
for average people to keep up and know what the new law means and how the
new parts are related to the old parts."
[SOURCE: New York Times (CyberTimes), AUTHOR: Carl S. Kaplan]
http://www.nytimes.com/library/tech/98/08/cyber/cyberlaw/07law.html

===========
LEGISLATION
===========

HOUSE APPROVES CAMPAIGN FINANCE BILL (WP)
HOUSE APPROVES SHAYS-MEEHAN BILL ON CAMPAIGN FINANCE REFORM (NYT)
HOUSE CLEARS BILL TO REVAMP CAMPAIGN FINANCE (WSJ)
Issue: Campaign Finance
The House has finally approved a bipartisan measure to reform the nation's
campaign finance system. The Shays-Meehan bill, representing largest change
in campaign finance rules in over a quarter of a century, would ban the
unregulated contributions to political parties, known as "soft-money."
Additionally, the legislation would impose stricter regulations on "issue
ads" aired by independent organizations in the last 60 days before an
election. Rep. Martin Meehan (D-Mass), co-sponsor of the bill, said upon
it's passage; "You only get an opportunity once in a generation to really
make a difference on a major issue. This is a golden opportunity we have."
[SOURCE: Washington Post (A1, A16), AUTHOR: Helen Dewar]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/07/130l-080798-idx.html
[SOURCE: New York Times (A19), AUTHOR: Alison Mitchell]
http://www.nytimes.com/library/politics/080798campaign-finance.html
[SOURCE: Wall Street Journal (A2), AUTHOR: David Rogers]
http://wsj.com/

HOUSE TELECOM SUBCOMMITTEE APPROVES BILL ON SLAMMING AND SPAMMING
Issue: Telephone Regulation
On August 6 the House Telecom Subcommittee approved a bill (HR-3888) to
crack down on slamming and spamming. The bill combines measures from House
Telecom Subcommittee Chairman Billy Tauzin (R-LA) and senior Commerce
Committee Democrat John Dingell (D-MI); the bill allows for consumers to
obtain rebates and sets up a dispute resolution method between carriers
concerning slamming -- when a carrier subscribes a customer without consent.
The spamming part of the
bill, dealing with unsolicited commercial e-mail, requires the Federal Trade
Commission to come up with rules for controlling spam and requires that the
words "unsolicited commercial e-mail" be in the text of any such message.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

PRIVACY ISSUES IN ANTISPAM BILL
Issue: Spam Legislation
The House Commerce Committee's telecommunications, trade and consumer
protection subcommittee approved a measure to regulate unsolicited
commercial email, dubbed spam, by requiring senders to identify themselves
in the body of their message. The measure is part of a bill that prohibits
telephone companies from switching customers' long distance carriers without
prior approval, also called slamming. "While few oppose the anti-slamming
provisions, Internet interests, civil libertarians and marketers are still
very much divided over what types of regulations, if any, should be placed
on unsolicited commercial email." For example, groups like the Center for
Democracy and Technology (CDT), "oppose blanket restrictions on email saying
that it infringes on free speech and sets a bad precedent for regulating the
Internet."
[SOURCE: New York Times (CyberTimes), AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/98/08/cyber/articles/07spam.html

HOUSE PASSES COMMERCE SPENDING BILL WITHOUT INTERNET ADD-ONS
Issue: Legislation/Budget Issues
On August 6 the House passed the fiscal year 1999 spending bill for the
Commerce Department and the FCC (HR-4276), by 225-203 vote, as the e-rate
debate failed to materialize. The bill cuts the FCC's budget by $5 million
from this year. The bill will now be reconciled with the Senate version
(S-2260) which
includes Internet filtering and content legislation as well as budgets for
the FCC, NTIA and other agencies. The Administration has threatened to veto
the bill over its treatment of the Census to be taken in 2000. Rep. Joe
Scarborough (R-FL) decided to not offer his amendment to eliminate e-rate
funding. He will support e-rate legislation proposed by House Telecom
Subcommittee Chairman Billy Tauzin (R-LA) that finances the plan through the
telephone excise tax.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

========
SECURITY
========

ANOTHER E-MAIL SECURITY PROBLEM IS DISCOVERED, THIS ONE IN EUDORA
Issue: Security
Just a few days after a serious security vulnerability was found in email
programs by Microsoft and Netscape, an equally troubling flaw has been
discovered in Eudora email software. The newly found flaw was discovered
earlier this week by a Massachusetts-based software company. The weakness
makes it possible for a malicious computer user to "booby-trap an email
message by inserting a seemingly harmless link to an Internet location that
in fact executes malignant code. This could permit an attacker to destroy or
steal data or to otherwise tamper with a personal computer." Eudora's flaw
is a consequence of the growing power of email that allows email messages to
include features containing software code as well as text. The flaw was
found only in Eudora versions 4.0 and 4.1, not earlier versions.
[SOURCE: New York Times (A1,C4), AUTHOR: John Markoff]
http://www.nytimes.com/library/tech/98/08/biztech/articles/07email-code....

=========
ANTITRUST
=========

U.S. JUDGE ORDERS MICROSOFT TO TURN OVER OPERATING SYSTEM CODE
Issue: Antitrust
United States District Judge, Thomas penfield Jackson, yesterday ordered the
Microsoft Corporation to turn over to the Government the source code for its
operating system and make its chairman, Bill gates and 16 other executives
available for pretrial depositions that last as long as the Justice Dept.
deems necessary.
[SOURCE: New York Times (C1,C3), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/98/08/biztech/articles/07microsoft.html

MICROSOFT TO MOVE FOR DISMISSAL
Issue: Anti-trust
Yesterday, Microsoft announced that it would move for a dismissal of the
Government's two anti-trust lawsuits against the software giant. Microsoft
lawyer, William Neukom said that he would "seek to convince the judge that
there is no genuine issue of material fact" involved in the governments
charges. While, legal experts say chances are very slim that U.S. District
Judge Thomas Penfield Jackson will throw out the case, Microsoft's motion
could delay the trials, scheduled to begin on September 8.
[SOURCE: Washington Post (F1), AUTHOR: Rajv Chandraskaran]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/07/063l-080798-idx.html

==========
JOURNALISM
==========

BOSTON GLOBE COLUMNIST REFUSES TO RESIGN
Issue: Journalism
Boston Globe columnist Mike Barnicle is refusing a request to resign from
the paper contending, "I have done nothing wrong." Barnicle is accused of
plagiarizing portions of a column and lying about doing so. "The Globe will
take a look at the options it has before it and will do what is best for the
newspaper," spokesman Richard Gulla said Thursday. Earlier this year, the
paper asked Patricia Smith to resign after she admitted to fabricating
people and quotes in some columns.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR:Jim Kirk]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808070201,00.h...

NU JOURNALISM SCHOOL GETS $20 MILLION GRANT
Issue: Philanthropy/Journalism
The Medill School of Journalism will receive $20 million from the Robert R.
McCormick Tribune Foundation to construct a new building, bolster the
school's broadcast journalism program, and create a multimedia center. The
grant also continues the foundation's support of NMC, a new media center
affiliated with Medill and the university's Kellogg Graduate School of
Management.
[SOURCE: Chicago Tribune (Sec 2, p.3)]
http://chicagotribune.com/

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
...and we are outta here. Enjoy the weekend and we'll be back on Monday.

Communications-related Headlines for 8/6/98

UNIVERSAL SERVICE/E-RATE
House May Not Vote on Amendment to Kill E-Rate (TelecomAM)
US West Endorses Burns-Tauzin E-Rate Funding Bill (TelecomAM)
Rural Health Care Group Faults FCC's USAC Reorganization (TelecomAM)

EDTECH
How to Get the Most From Computers in the Classroom (NYT)

REGULATION/TELEPHONY
FCC Easing Rules to Build Data Systems (NYT)
Agreement by Local and State Governments and Wireless
Industries on Facilities Siting Issues (FCC)
FCC Plans Better Internet Hookups (WP)
Phone Lines, and Lines and Lines, Keeping Their Appeal (NYT)
In Southern California, Cox Communications Rattles a Baby Bell (WSJ)

LONG DISTANCE
FCC to Propose New Rules for Calls Abroad From U.S. (WSJ)

ADVERTISING
Strong Ad Sales at Stations Lift CBS Profit (NYT)
Filters Let Users Screen Out On-Line Advertising (NYT)

MERGERS/ANTITRUST
Connecticut Regulators Plan to Approve SBC-SNET Merger (TelecomAM)
SNET Workers May Strike Because Contract Differs from SBC (TelecomAM)
Microsoft Says Chicken (Windows) Hatched Before Egg (Netscape) (NYT)

GRASS-ROOTS ACTIVISM
Cameras Empowering Communities (WP)

========================
UNIVERSAL SERVICE/E-RATE
========================

HOUSE MAY NOT VOTE ON AMENDMENT TO KILL E-RATE
Issue: Universal Service
Conflicting reports on Rep Joe Scarborough's (R-FL) amendment to the
Commerce Department's appropriations legislation (HR-4276). Rep
Scarborough's amendment would eliminate funding for the e-rate program. Rep.
Scarborough's staff said that he is "moving forward" with his amendment,
despite some belief among other legislators that the amendment will not be
offered, TelecomAM reports. Rep. Earl Blumenauer (D-OR), one of the e-rate's
strongest supporters, predicted Rep Scarborough's amendment would lose by a
wide margin. Rep Blumenauer said that as members of Congress head home for
recess, they do not want to be seen as "anti-education, anti-library,
anti-high-tech or anti-kid." He added: "I don't think Congress will adjourn
without having funding in place for e-rate."
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

U S WEST ENDORSES BURNS-TAUZIN E-RATE FUNDING BILL
Issue: Universal Service
US West Vice President Mark Roellig said in a statement that the
company "support[s] the [e-rate] program and encourage[s] Congress and the
FCC to work to improve its implementation and adopt an equitable source for
funding, like using a portion of the existing telephone excise tax." The
bill, sponsored by Senate Communications Subcommittee Chairman Conrad Burns
(R-MT) and House Telecom Subcommittee Chairman Billy Tauzin (R-LA) would
eliminate two-thirds of the phone excise tax and use the remaining one-third
to fund the e-rate. But hold on, 'cause Congress loves choice: Ranking House
Commerce Committee Member John Dingell (D-MI) is working on his own version
of excise tax
legislation. Rep Dingell would use half of the excise tax to fund Internet
connections without block grants (which are proposed in the Rep Tauzin
legislation), and with a formula to target the most needy schools and
libraries. Rep Dingell's legislation could be offered as a stand alone bill
or as an amendment to Rep Tauzin's bill.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

RURAL HEALTH CARE GROUP FAULTS FCC'S USAC REORGANIZATION
Issue: Universal Service
In comments filed August 5, the National Rural Health Association (NRHA)
said it opposes the proposed reorganization of the Universal Service
Administrative Company (USAC). The FCC proposal would create an 18-member
governing board with seven of its members comprising a Rural Health Care
Advisory Committee and seven comprising a Schools and Libraries Advisory
committee. But only one representative of the health care industry is
included, NRHA said. "It is our belief that it will be impossible for a USAC
board that lacks adequate user representation to preserve the unique
interests and appreciate the special circumstances of rural health," NRHA
President Gail Bellamy said.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

==========
EDTECH
==========

HOW TO GET THE MOST FROM COMPUTERS IN THE CLASSROOM
Issue: Ed Tech
Yarnell writes, "Roughly 80 percent of American schools had Internet access
by last year, according to the United States Department of Education, and
about a quarter of those schools had access directly in the classroom. But
as the novelty of computers has worn off, the demand to use them for
high-quality learning has increased. Reports of costly computers gathering
dust in school storerooms or being used as overpriced typewriters have
contributed to a rising backlash against computer spending by schools.
Critics question the expense of computers, particularly when schools buy
them with money diverted from programs for the arts, textbooks and
extracurricular activities."
[SOURCE: New York Times (D1), AUTHOR: Louise Yarnell]
http://www.nytimes.com/library/tech/98/08/circuits/articles/06clas.html

====================
REGULATION/TELEPHONY
====================

FCC EASING RULES TO BUILD DATA SYSTEMS
Issue: Regulation
"The major impediment that the Internet faces in becoming more useful to the
American consumer is bandwidth capacity," said FCC Chairman William E.
Kennard. The Commission is expected to propose new rules that would
accelerate the deployment high-bandwidth services to homes. The rules would
exempt Baby Bells from having to resell capacity on their high-speed data
networks to competitors if the Bells establish separate data subsidiaries.
The proposal will see heaving lobbying efforts by the Bells competitors --
long distance companies and new local carriers -- who want the Bells to be
forced to resell and the Bells who do not want to have to create subsidiaries.
[SOURCE: New York Times (C4), AUTHOR: Seth Schiesel]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/06data.html

AGREEMENT BY LOCAL AND STATE GOVERNMENTS AND WIRELESS INDUSTRIES ON
FACILITIES SITING ISSUES
Issue: Role of Local Government
Chairman William E. Kennard announced a facilities siting agreement between
the Commission's Local and State Government Advisory Committee (LSGAC), the
Cellular Telecommunications Industry Association (CTIA), the Personal
Communications Industry Association (PCIA), and the American Mobile
Telephone Association (AMTA). The groups presented Chairman Kennard with a
joint agreement involving appropriate guidelines for tower and antennae
siting, as well as an informal dispute resolution process for siting issues.
[SOURCE: FCC]
http://www.fcc.gov/statelocal/agreement.html

FCC PLANS BETTER INTERNET HOOKUPS
Issue: Infrastructure
The Federal Communications Commission is expected to propose giving
incentives today to local phone companies in an effort to encourage them to
build the expensive infrastructure needed for high-speed data connections.
The final plan could be adopted by the end of the year. "Most
Americans...are getting very used to high speed Internet access in the
office. They go home and it's the World Wide Wait and it's very
frustrating," said FCC Chairman Bill Kennard. "We want to bring that same
high bandwidth capacity into every home in America." The FCC is also
exploring ways to give other companies incentives to build faster
connections into the home.
[SOURCE: Washington Post (WashTech), AUTHOR: Jeannine Aversa/AP Writer]
http://search.washingtonpost.com/wp-srv/WAPO/19980806/V000112-080698-idx...

PHONE LINES, AND LINES AND LINES, KEEPING THEIR APPEAL
Issue: Infrastructure
Households with increasing telecommunications needs are sticking with
regular analog phone lines rather than ISDN or ADSL. The higher bandwidth
services, where available, are more costly and require more costly
equipment. Adding an additional phone line for $20/month is the way most
families are going to handle fax machines, Internet hook-ups, or talkative
teenagers. Sales of second phone lines are booming.
[SOURCE: New York Times (E9), AUTHOR: Sana Siwolop]
http://www.nytimes.com/library/tech/98/08/circuits/articles/06fone.html

IN SOUTHERN CALIFORNIA, COX COMMUNICATIONS RATTLES A BABY BELL
Issue: Competition
In an effort to sway customers away from Pacific Bell,Cox Communications'
has started to offer some phone rates that undercut PacBell by more than 50
percent. "The fact that phone service is going over as well as it is, as
well as Internet access, on top of our entertainment product and digital TV,
says to me that we are fulfilling our dream of becoming a one-stop service
provider," says Jim Robbins, Cox's chief executive director. PacBell, on the
other hand, says that its customer-service rankings "have never been better"
in California and contends that installation times and prices are continuing
to improve. SBC, PacBell's parent says that Cox is a "formidable" competitor
that has "methodically focused on high-income, high-usage" residential
customers. SBC points out that Cox is able to offer "something we can't" --
a package that includes long-distance and local phone service plus video,
high-speed data transmission and Internet access -- giving Cox an unfair
advantage over the Baby Bell. "What the Cox experience has demonstrated is
that companies that want to compete in the market, can compete," said an SBC
spokesperson. SBC contends that in order to gain equal footing it should be
allowed to provide long-distance service.
[SOURCE: Wall Street Journal (A1,A8), AUTHOR: Leslie Cauley]
http://wsj.com/

=============
LONG DISTANCE
=============

FCC TO PROPOSE NEW RULES FOR CALLS ABROAD FROM U.S.
Issue: Long Distance
The Federal Communications Commission will propose new rules today that
would deregulate most of the market for international telephone calls. The
current rules require that all telecommunications carriers in a given
country charge U.S. carriers the same rate when the foreign carriers
transmit U.S. calls. "The agency wants to lift the restrictions on countries
with competitive telecommunications markets." FCC officials said the
proposal would affect more than half of the foreign phone calls from the
U.S., which could translate into lower rates for U.S. consumers who call
overseas.
[SOURCE: Wall Street Journal (B7), AUTHOR: John Simons]
http://wsj.com/

===========
ADVERTISING
===========

STRONG AD SALES AT STATIONS LIFT CBS PROFIT
Issue: Television Economics
Advertising growth at CBS television and radio stations led to a fourfold
increase in net income for CBS Corporation. But the performance was not as
strong as analysts predicted and there are lingering questions about the
company. CBS is the number 2 network in prime-time, but can not charge high
advertising rates because its shows appeal to mostly older viewers. CBS may
also be relying too much on ad rates: "If the economy were to weaken, ad
rates would come down," an analyst said.
[SOURCE: New York Times (C5), AUTHOR: Bloomberg News]
http://www.nytimes.com/

FILTERS LET USERS SCREEN OUT ON-LINE ADVERTISING
Issue: Advertising/Internet
In October 1994, Hotwired introduced the Web's first advertisements. Less
than a year later, Web Filter emerged to keep browsers from loading ads. Now
there are many software packages that will help keep you Internet experience
ad free: Intermute www.intermute.com, a "decaf" filter to avoid Java
scripts muffin.doit.org, ( at )Guard, a personalfirewall www.atguard.com. "We
think Web ad filters aren't necessary," said Lyn Chitow Oakes vice president
of marketing at Flycast Communications, an Internet advertising network.
"Web advertising is not very intrusive, it doesn't stop you from getting to
the information you want, and it doesn't break up programming at all." Her
company's ads are designed to load faster than the underlying content.
[SOURCE: New York Times (D2), AUTHOR: Tina Kelly]
http://www.nytimes.com/library/tech/98/08/circuits/articles/06ugee.html

=================
MERGERS/ANTITRUST
=================

CONNECTICUT REGULATORS PLAN TO APPROVE SBC-SNET MERGER
SNET WORKERS MAY STRIKE BECAUSE CONTRACT DIFFERS FROM SBC
Issue: Mergers
In a draft decision released August 5, regulators in Connecticut plan to
approve the $4.4-billion purchase of Southern New England Telephone (SNET)
by SBC. The state's attorney general had urged regulators to require SBC to
reduce local phone rates to reflect merger synergies, but regulators said
they "scrutinized the law and can find no requirement that rates must be a
consideration" for merger approval. "There is no economic basis on which to
order a rate reduction," they said. Instead, they plan to order SBC to use
"any over earnings" to invest in new equipment and networks "at an
accelerated pace." Connecticut will receive public comment until August 21
and will hear oral arguments August 25. A final vote is set for September 2.
In a related
story, workers at Southern New England Telephone (SNET) may strike by the
end of the week unless there is a new labor agreement. SBC workers have
better retirement benefits than SNET workers.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

Microsoft Says Chicken (Windows) Hatched Before Egg (Netscape)
Issue: Antitrust
In papers that will be filed in the Government's antitrust case, Microsoft
will contend that it began planning an Internet strategy before Netscape
rose to challenge the software giant. As early as April 6, 1994, several
Microsoft employees contend, company strategy was set to include built-in
access to the Internet in the company's mainstay product, the Windows
operating system. A senior Justice Department official said this week that
evidence in the Government's case showed a pattern of anti-competitive
behavior by a company that was "simply hellbent on driving a competitor out
of the market." Microsoft's defense, he says, is a "grand exercise in
revisionist history."
[SOURCE: New York Times (C1), AUTHOR: Steve Lohr]
http://www.nytimes.com/library/tech/98/08/biztech/articles/06microsoft.html

====================
GRASS-ROOTS ACTIVISM
====================

CAMERAS EMPOWERING COMMUNITIES
Issue: Community Activism
One World Media Center, based in Adams Morgan in Washington DC, is one of
several community film centers across the nation that are taking advantage
of improving technology and falling costs to do grass-roots media work. "As
all these huge mega-media makers are merging, more and more independents or
individuals who have a powerful message to tell get squeezed out of the
process," said Theodore Smith, who co-founded One World in 1994. "Media
activism is trying to empower folks who feel traditionally shut out in
getting their voice heard." The independent producers at One World share
their work with others through film festivals, private screenings and public
access television. These "media activists" working at the media center are
part artist, part political theorists. "For democracy to work, a broad range
of people have to be able to participate in public discourse," said David
Welch, a co-founder of One World. "What happens is that a lot of public
discourse happens on newspaper or television or radio. If it's too
expensive, it starts to limit the range of democracy itself. This is why One
World exists." You can access One World Media Center's Web site at:
http://www.owmc.org
[SOURCE: Washington Post (DC1,DC5), AUTHOR: Jennifer Lee]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/06/057l-080698-idx.html

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

Communications-related Headlines for 8/3/98

CAMPAIGN FINANCE REFORM
Campaign Reform's Finest Chance (NYT)

INTERNET
Internet Is Snagging on Free-Market Appetites (NYT)
Senate Panel Would Reduce Tax Moratorium on Internet (NYT)
Bringing China On Line (With Official Blessing) (NYT)
Power Companies Embrace the Internet (NYT)
A Focus on Women at iVilliage.com (NYT)

CABLE
Lott Lobs 'Stink Bomb' Into Hearing (B&C)
Tauzin, Markey Team Up to Lower Cable Rates (B&C)

TELEVISION
Matsushita Digital TVs to Debut in US Stores (WSJ)
Networks to Launch a Rival to Nielsen Service (WSJ)
Hard at Work on 'Lazy' Interactive TV (WP)

RADIO
Working Women Use Radio Heavily (B&C)

JOURNALISM
Online Journalism Coming Into Its Own (NYT)
Reporting Live, Indiana Jones-Style (CyberTimes)

MERGERS
GTE Executive Says Regulators Haven't Raised Alarm About Merger
Ameritech deal faces challenge (ChiTrib)

PRIVACY
Gore Endorses Privacy Regulation By Industry

JOBS
Veto Threatened for High Tech Visa Bill (CyberTimes)
Seventeen Firms Make Pledge to EEO Principles (B&C)
Women's Work Still Excludes Top Jobs (B&C)

ADVERTISING
Deal to Create the Largest Interactive Ad Agency (NYT)

=======================
CAMPAIGN FINANCE REFORM
=======================

CAMPAIGN REFORM'S FINEST CHANCE
Issue: Campaign Finance Reform
Last week, Members of Congress fought off sixteen amendments to the
Shays-Meehan campaign finance reform bill, each designed to kill the
legislation. The House now seems poised to ban unlimited "soft money." "By
banning soft-money donations to parties and curbing fund-raising for
campaign ads by single-issue advocacy groups, the Shays-Meehan bill would
drastically reduce the role of special-interest money in elections. Why
would anyone allow such corruption to continue now that the opportunity for
reform is here?" [For more on campaign finance reform see Destination
Democracy http://www.destinationdemocracy.org/]
[SOURCE: New York Times (A20), AUTHOR: NYT Editorial Staff ]
http://www.nytimes.com/yr/mo/day/editorial/03mon1.html/

========
INTERNET
========

INTERNET IS SNAGGING ON FREE-MARKET APPETITES
Issue: Internet Standards
The browser war between Microsoft and Netscape is an example of the
commercial fights that may ruin the greatest strength of the Internet which
is supposed to a truly global marketplace. Corporate powers are trying to
use their market strength to impose technical standards at the expense of
universal access to online goods and services. "Open is a euphemism for
commodity," recently wrote William Gurley, an analyst and venture capitalist
with Hummer Winblad Venture Partners. "In commodity markets, people
differentiate with production or distribution prowess and not with
innovation." And the companies with production and distribution prowess are
generally the market leaders.
[SOURCE: New York Times (C3), AUTHOR: Denise Caruso]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/03tech.html

SENATE PANEL WOULD REDUCE TAX MORATORIUM ON INTERNET
Issue: Internet/Legislation
Congress now has three versions of the Internet Tax Freedom Act. The House
version calls for a three-year moratorium on Internet taxes while the Senate
Commerce Committee has approved a six-year ban. Last week, the Senate
Finance Committee approved a version of the bill with just a two-year ban.
The Senate is now in recess for August and differences between the three
bills will probably be worked out before the bill reaches the Senate floor.
The concept of making the Internet a tax-free zone was criticized by Michael
Maserov, a senior policy analyst with the Center on Budget and Policy
Priorities. "This is just one more tax break for the affluent at the expense
of the poor," he said.
[SOURCE: New York Times (C5), AUTHOR: David Cay Johnston]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/03tax.html

BRINGING CHINA ON LINE (WITH OFFICIAL BLESSING)
Issue: Internet Access
China Internet Corporation (CIC) is trying to bring the Internet to China
and the country's 1.2 billion people. CIC has backing from the Chinese
Government as well as America Online, Bay Networks, Netscape, and Sun
Microsystems. But rival Internet service providers say CIC is out of step
with Internet users because it is trying to control what information people
have access to. There are four forbidden subjects: pornography, dissidents,
Tibet and Taiwan.
[SOURCE: New York Times (C1), AUTHOR: Mark Landler ]
http://www.nytimes.com/library/tech/98/08/biztech/articles/03hong.html

POWER COMPANIES EMBRACE THE INTERNET
Issue: Infrastructure
The newest "power" in the Internet service provider business may be your
utility company. Thirty of the largest electricity companies in the country
are now offering Internet access. Due to utility deregulation, these
companies are having to learn how to compete and find new sources of
revenue. Many of these companies own large fiber-optic networks built for
internal communications. They are finding new uses for the capacity they do
not need. [Gee, if these companies are or were monopolies, I wonder who paid
for all that excess communications capacity?]
[SOURCE: New York Times (C3), AUTHOR: Matt Richtel]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/03utilities-inte
rnet.html

A FOCUS ON WOMEN AT iVILLAGE.COM
Issue: Gender Issues
iVilliage is the leading online community for women on the Web. "Join our
community of smart, compassionate, real women today," the iVillage.com home
page invites visitors, offering an array of news, columns, advice and tips.
Although profits for the site are a long way off, the company has had now
problems raising capital. Women made up only one-third of Internet users
just to years ago -- now they represent one half of all users. iVillage also
focuses not so much on top-tier columnists, but on what readers can
contribute to topics like parenthood, relationships and workplace issues.
[SOURCE: New York Times (C6), AUTHOR: Lisa Napoli]
http://www.nytimes.com/library/tech/98/08/biztech/articles/03ivillage.html

======
CABLE
======

LOTT LOBS 'STINK BOMB' INTO HEARING
Issue: Regulation
Senate Majority Leader Trent Lott (R-MS) paid a surprise visit to a Senate
Commerce Committee hearing last week to share some thoughts about raising
cable rates. "I want to make clear to the cable industry that you are
playing with live fire here," said Sen. Lott. "And if the rates continue to
go up the way they've been going up in some areas, I think a major problem
will erupt. We cannot have a situation where rates increase several
percentages, because our constituents will raise Cain. And when they do, we
will take action." Senate Commerce Committee Chairman John McCain (R-AZ),
while unhappy about rising cable rates, would still prefer competition over
re-regulation. "In my judgement, we should not go down the path of
tightening up or extending cable rate regulation." Following Congress's
August recess, Sen. McCain plans to introduce "pro-competition" legislation.
[SOURCE: Broadcasting&Cable (p.19), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/

TAUZIN, MARKEY TEAM UP TO LOWER CABLE RATES
Issue: Regulation
In an effort to give local communities a say in what their local cable
operator sells to them and a what price, Rep. Billy Tauzin (R-LA) and Rep.
Ed Markey (D-MA) unveiled a bill last week that would give local franchise
authorities the ability the decide whether cable companies are providing
their communities with enough choices at low rates. "If the local authority
found that the operator is not offering these choices, it could choose not
to 'certify' that operator with the FCC, allowing the FCC to continue
regulating it." This review process would continue every year until
competition came to the market or the cable operator satisfied the local
franchise authority.
[SOURCE: Broadcasting&Cable (p.19), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/

==========
TELEVISION
==========

MATSUSHITA DIGITAL TVS TO DEBUT IN U.S. STORES
Issue: DTV
This week, consumers will have the opportunity to purchase the first
digital-television sets to hit the US market. The Matsushita Electric
Industry Company's Panasonic televisions will sell at $5,000 to $6,000 and
require the additional purchase of a $1,500 set -top box in order to receive
the first digital broadcasts scheduled for November of this year. The sets
do receive analog signals on their high-resolution screens which, according
to Bill Mannion of Panasonic, make these the ultimate analog TV."
[Wall Street Journal (A4), Evan Ramstad]
http://wsj.com/

NETWORKS TO LAUNCH A RIVAL TO NIELSEN SERVICE
Issue: Television
The big four broadcast networks -- CBS, NBC, ABC, and Fox -- announced plans
last week to back a new TV ratings service to compete with the current
ratings monopoly of Nielsen Media Inc. The networks have long complained of
undercounting by Nielsen and claim that the launch of a new service in the
only way to insure reliability of the numbers that determine the fate of
billions of dollars of TV revenue each year. Nielsen officials question the
motives and objectivity of a service backed by broadcasters with dwindling
viewership.
[Wall Street Journal (B1, B4), Kyle Pope]
http://wsj.com/

HARD AT WORK ON 'LAZY' INTERACTIVE TV
Issue: Interactive TV
A new coalition, formed by Microsoft, Walt Disney, Intel, and CNN, is
developing a new industry standard for interactive (web) television. They
hope that increased compatibility will attract more subscribers to "lazy
interactive TV." Josh Bernoff, an analyst for Forrester Research, explains;
"Lazy interactivity is interactivity you can do with a remote in one hand
and a beer in the other." One concern about the new interactive system is
privacy. "Web privacy concerns have already raised consumers' and
regulator's antennae, but data collection [by interactive TV] will be more
pervasive and potentially pernicious," says a Forrester report.
[Washington Post (F12), Robert O'Harrow Jr.]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/03/022l-080398-idx.html

======
RADIO
======

WORKING WOMEN USE RADIO HEAVILY
Issue: Radio
A recent profile of the country's 137 million female consumers from Interep
Research, concludes that radio reaches 80 percent of women in all key buying
demographics weekly. The report, that used Simmons spring 1998 data,
indicates that these numbers are of importance to advertisers because it
indicates that women still "retain primary homemaking and shopping
responsibilities within the household." In other words, the gender that
dominates males in population numbers (51%-49%) is also the one that is
buying most of the products. The report also finds that "working women are
21 percent more likely to be a heavy radio users than the average adult
[and] more likely to be a heavier user of radio than any other medium."
[SOURCE: Broadcasting&Cable (p.34), AUTHOR: John Merli, B&C Correspondent]
http://www.broadcastingcable.com/

===========
JOURNALISM
===========

ONLINE JOURNALISM COMING INTO ITS OWN
Issue: Journalism
Print journalists have been looking down on their online colleagues.
Career-wise, working for an online venture was "a leap over a black hole."
But for some, the opportunity to be part of creating something new and to
take a leadership position was worth the risk. Established writers are
moving onto the Internet now too and online journalism is gaining some
respect. Media companies are taking their online ventures more seriously and
print journalists are fighting to make contributions to online editions.
[SOURCE: New York Times (C6), AUTHOR: Jamie Heller (Executive Editor,
TheSreet.com]
http://www.nytimes.com/library/tech/98/08/biztech/articles/03online-journal
ism.html

REPORTING LIVE, INDIANA JONES-STYLE
Issue: New Technology/Reporting
Jim Bruton, a documentary producer of nature films from around the globe,
has invented a television field production package that puts the
transmission technology, currently available in a huge half-million dollar
satellite truck, into a backpack. He claims that his invention makes it
possible to broadcast live pictures from anywhere in the world within just
ten minutes of setup time. He calls his rig a "TV truck in a suitcase."
"Newsworthiness is not defined by broadcast quality; it's by who gets there
first," Bruton said. Solo journalists could use Bruton's system to transmit
information on a news story in a shorter amount of time than those having to
deal with satellite trucks and a properly equipped journalist could move in
even closer to a news scene at a fraction of the cost.
[SOURCE: New York Times (CyberTimes), AUTHOR: Lisa Napoli]
http://www.nytimes.com/library/tech/98/08/cyber/articles/03television.html

=======
MERGERS
=======

GTE EXECUTIVE SAYS REGULATORS HAVEN'T RAISED ALARM ABOUT MERGER
Issue: Mergers
"They [regulators] are not as concerned by GTE as a fortress," said GTE
Executive Vice President-General Counsel William Barr. "They will see this
as carrying competition nationwide and will not see it as a significant
potential competitive problem." The merger, Mr. Barr suggests, will create
an opportunity for LEC-to-LEC competition since GTE's territory is embedded
in the Ameritech, BellSouth, SBC and U S West regions.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

AMERITECH DEAL FACES CHALLENGE
Issue: Mergers
"One of the things SBC and Ameritech have told us is that `we're prepared to
demonstrate we'll bring more competition outside of our region.' But I
haven't heard them say they're going to do things to bring more competition
in their regions," FCC Chairman Kennard said at a Bloomberg News forum late
last week. He said the two companies have a "very heavy burden to show that
this merger is pro-competitive." SBC and Ameritech claim that by bulking up
through the merger they will be able to compete for customers in large
cities outside their combined region. Ameritech used the same sort of
reasoning when applying to be allowed to provide in-region long distance
service: once we compete with AT&T the long distance giant will compete for
our local customers. Chairman Kennard's remarks signal he ain't buying this
line. "The regional Bells have all played this game of turning the wheel one
degree at a time on local competition," said Andy Belt of Renaissance
Worldwide, a Boston-based consultancy. "They take one step to open their
markets and then look to see if that's enough to satisfy the regulators so
they can get into long distance. What Kennard is saying is that he wants
them to take three steps, and maybe he'll bless their merger."
[SOURCE: Chicago Tribune (Sec 4, p.3), AUTHOR:Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808030009,00.html

=======
PRIVACY
=======

GORE ENDORSES PRIVACY REGULATION BY INDUSTRY
Issue: Privacy
On July 31 Vice President Gore said that Congress should pass legislation to
protect the online privacy of children while allowing industry to
self-regulate privacy concerns for others. Privacy advocates said that the
Administration's proposal does not go far enough. The White House said it
will ask Congress for a bill that would set down a specific set of "fair
information principles" to be applied to the collection of information from
children.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

====
JOBS
====

VETO THREATENED FOR HIGH TECH VISA BILL
Issue: Jobs
Congressional leaders who had reached a compromise on legislation to
increase the number of visas available for high-technology workers, canceled
their planned votes on Friday under the threat of a presidential veto.
Although supporters of the legislation remain optimistic about working out
their differences with the White House, the news was a blow to companies who
had hoped to relieve their shortage in workers before the end of the fiscal
year in September.
[SOURCE: New York Times (CyberTimes 8/1), AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/98/08/cyber/articles/01visa.html

SEVENTEEN FIRMS MAKE PLEDGE TO EEO PRINCIPLES
Issue: Minorities
The FCC may not survive an ongoing court challenge to its equal employment
opportunity rules, but last week 17 broadcast and cable companies committed
to abiding by "EEO principles" even if an appeals court pulls the plug on
FCC's rules. "These companies know that reaching out and finding talented
men and women of all colors to run their companies is good business and the
right thing to do," said Commission Chairman William Kennard during a speech
to the National Association of Black Journalists. "I urge others to do the
same."
[SOURCE: Broadcasting&Cable (p.16), AUTHOR: Chris McConnell]
http://www.broadcastingcable.com/

WOMAN'S WORK STILL EXCLUDES TOP JOBS
Issue: Gender
Since last September, four of the television industry's most prominent and
arguably most powerful women -- Kay Koplovitz, Geraldine Laybourne, Margaret
Loesch and Lucie Salhany -- have lost their jobs. Whatever the reasons,
these moves depleted top-level women in the industry and underscored that
men are still running the show in TV. "B&C's Top 25 Media Groups are all
headed by men (July 7, 1997). No woman leads a Top 25 TV Group (April 6). No
woman sits atop any of the seven broadcast networks or a major cable
programming company. And there's just one woman among the Top 25 operators
-- Margaret Walson of Service Electric Cable -- at No. 25 (April 20)." With
ongoing consolidation within the industry, Salhany expects opportunities to
get worse for women trying to reach the top. There will be fewer top-level
jobs, and when positions do open up they will most likely be filled by other
men. But broadcasting and cable's glass ceiling may soon shatter. Although
"one does feel there's a point of view missing" at the very top, "there's a
really large group of aggressive supersmart, very savvy 30-year-olds that
are going to be the next
wave," says David Grant, president of Fox Television Studios. And he should
know...three of Fox's top executives (all executive vice presidents) are
women. Women are also running several cable channels and last week Patricia
Fili-Krushel became president of ABC television network. Several studies
have shown that the number women in the top ranks are increasing but some agree
that prejudiced is still out there. Koplovitz says that male CEO's are
excluding women, but not necessarily discriminating against them. The
problem is one of awareness, she says. "The CEOs in this business really
need to look at their own companies." A corporation's responsibility is "to
see that it prepares women to be among that [top] group. That's all we can
ask. I don't believe in demand, but people need the opportunity, and they
need enlightened leadership to get there."
[SOURCE: Broadcasting&Cable (p.22-27), AUTHOR: Elizabeth A. Rathbun]
http://www.broadcastingcable.com/
For other related stories see:
CABLE HAS MORE JOBS FOR WOMEN, BUT NOT AT THE TOP
[SOURCE: Broadcasting&Cable (p.25), AUTHOR: Elizabeth A. Rathbun]
http://www.broadcastingcable.com/
CONSOLIDATION MAKES LIFE TOUGHER FOR WOMEN OWNERS
[SOURCE: Broadcasting&Cable (p.22-27), AUTHOR: Elizabeth A. Rathbun]
http://www.broadcastingcable.com/

===========
ADVERTISING
===========

DEAL TO CREATE THE LARGEST INTERACTIVE AD AGENCY
Issue: Advertising/Mergers
In a late-90's version of PacMan, small ad agencies started by young
entrepreneurs are racing to gobble each other up. There will be an
announcement today that Agency.com has purchased Eagle River Interactive to
create the largest agency devoted to creating advertising for the Internet.
In recent months, Agency.com has also purchased Online Magic, Spiral Media,
Ketchum Interactive and Interactive Solutions. Interactive agencies provide
a range of services, including helping companies set up their own sites on
the World Wide Web and placing "banner" advertisements on other sites to
bring in traffic, Hansell writes. "An interactive company is one part
creativity, one part technology and one part business strategy," said an
industry executive.
[SOURCE: New York Times (C1), AUTHOR: Saul Hansell ]
http://www.nytimes.com/library/tech/98/08/biztech/articles/03omnicom.html

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