October 1998

EDTECH
Boston Becomes 1st Big City to Link Entire School System to Web (WP)
Company Offers Schools Advertiser-Supported Computer Labs (CyberTimes)

INTERNET
Letter to the Internet Corporation for
Assigned Names and Numbers (NTIA)
Replay on Internet Porn (WP)
Candidates in Tight Races Turn to Web, Survey Finds (CyberTimes)
Nielsen Partners With Web Measurement Company (CyberTimes)
Intel Is Investing In Health Firms On The Internet (WSJ)

TELEVISION
Commissioner Ness's Remarks at the MSTV Annual Update (FCC)
Gay Church Sues TV Station for Rejecting an Infomercial (NYT)

TELEPHONY
Phone Fee Quirk Benefits New Providers (NYT)
SBC Communications, Inc and SNET Merger (FCC)
Tariffing of Digital Subscriber Line Services (NTIA)

SATELLITE
Iridium Is Set to Launch Call Service But Concerns Mount Over
Performance (WSJ)

JOBS
Vacancy Announcement: Associate Administrator for Policy
Analysis and Development (NTIA)

ANTITRUST
In Its Case Against Microsoft, U.S. Now Cites Note From Apple (NYT)
U.S. Signals New Focus in Microsoft Case (WSJ)
U.S. Uses Apple Notes Against Microsoft (WP)

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

BOSTON BECOMES 1ST BIG CITY TO LINK ENTIRE SCHOOL SYSTEM TO WEB
Issue: EdTech
On Monday Boston became the first large urban school district in the U.S. to
link all its public schools, libraries and community centers to the
Internet. The city possesses one computer for every 10 students in its 128
schools and aims to have a computer for every four students by 2001. The
effort, a partnership between government and private industry, has raised
over $26 million in outside support. Each Boston public school has at least
one computer lab. About 60 percent of the system's 4800 teachers have been
trained on using computers as instructional tools. The effort led by Boston
Mayor Thomas Menino is intended to give economically disadvantaged students
access to technology, improved education and additional career
opportunities. [This story appeared in the Washington Post on Tuesday.]
[SOURCE: Washington Post (A6), AUTHOR: Pamela Ferdinand]
http://www.washingtonpost.com/wp-srv/WPlate/1998-10/27/041l-102798-idx.html

COMPANY OFFERS SCHOOLS ADVERTISER-SUPPORTED COMPUTER LABS
Issue: EdTech/Advertising
Faustian bargain or sensible horse trade. ZapMe!, a new company, is offering
schools thousands of dollars worth of free computer equipment, software and
Internet access in exchange for the right to post advertising in schools.
"When I first heard about this, I asked the ZapMe! people 'Are you sure your
offices are in San Ramon and not the North Pole?'" said Theodore F. Maddock,
technology coordinator for Mt. Diablo High School, a public school that uses
ZapMe! and serves a largely poor and minority student body in Concord, CA.
"This is one of a number of commercial initiatives that tie in access to
selling students' eyeballs," said Jeffrey Chester, executive director of the
nonprofit Center for Media Education, an electronic media public interest
group in Washington, D.C. Mr. Chester added, "Selling is not the purpose of
public education. Educating students is." Mendels reports, Schools that join
get free computer equipment and services -- including a satellite dish, 15
personal computers for a computer lab and Internet access -- as well as
support and maintenance of the system. It is a package worth about $9,500 a
month over a three-year period, according to Frank J. Vigil, president of
the company.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels
mendels( at )nytimes.com]
http://www.nytimes.com/library/tech/98/10/cyber/education/28education.html

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

LETTER TO THE INTERNET CORPORATION FOR ASSIGNED NAMES AND NUMBERS
Issue: Internet
"Based on a review of ICANN's submission, other public submissions, and on
public comments on those submissions, the Department of Commerce regards the
ICANN submission as a significant step towards privatizing management of the
domain name system. Overall, the submissions we received supported moving
forward with the ICANN structure. We note, however, that the public comments
received on the ICANN submission reflect significant concerns about
substantive and operational aspects of ICANN. We strongly recommend that you
review and consider the many thoughtful and constructive comments posted at
www.ntia.doc.gov. The submissions of the Boston Working Group and the Open
Root Server Confederation, among others, articulate specific concerns, many
of which we share. As you refine your proposal, we urge you to consult with
these groups and others who commented critically on your proposal to try to
broaden the consensus."
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/icann102098.htm

REPLAY ON INTERNET PORN
Issue: Internet/Content [Editorial]
The constitutional challenge to the 1996 Communications Decency Act will
soon be revisited in a Philadelphia court. Critics of the original law have
already filed suit against Congress's revised version the 1996 Act, which as
rejected by the Supreme Court last summer. While the new law replaces the
"indecency" standard with "harmful to minors" and now only applies to
commercial Web sites, the "new measure is an echo of the original bad idea."
[SOURCE: Washington Post (A18), AUTHOR: Washington Post Editorial Staff]
http://www.washingtonpost.com/wp-srv/WPlate/1998-10/28/010l-102898-idx.html

CANDIDATES IN TIGHT RACES TURN TO WEB, SURVEY FINDS
Issue: Media & Politics
Elaine Kamarck, researcher at Harvard University's Kennedy School of
Government, has found that the more competitive the political contest, the
more likely a candidate will try to reach out to voters online with a Web
site. "In a competitive race, you would not want to leave even one stone
unturned," Ms. Kamarck said. "In competitive races, people are on the Net."
Of the 46 candidates running in competitive races for Governor or United
States Senate, only one candidate -- Gov. Lincoln Almond of Rhode Island --
did not have a campaign Web site. Of the 36 major-party gubernatorial
candidates, 83% of the incumbents have campaign sites, while 92% of their
major-party challengers do. Of 28 candidates said to be in competitive
gubernatorial races, 27 have Web sites. Candidates in Senate races are not
quite as Web-friendly and Ms. Kamarck believes it is because the races are
less competitive. In 34 Senate races nationwide, 77% of the incumbents have
campaign Web sites, and 64% of the major-party challengers have them.
However, all of the 18 candidates in competitive races for the Senate have
sites, Ms. Kamarck said. In the House, only 19% of the 409 incumbents
running for re-election have campaign sites, while 52% of the 371
challengers had sites. Two factors may influence these numbers: Many
challengers with sites are vying for open seats, and many of the incumbents
are running unopposed. Ms. Kamarck found that of the 78 minor-party
candidates in gubernatorial races, just 44% had Web sites. Of the 72
minor-party candidates for Senate, 33% were on the Web, and of the 295
running for Congress, 34% were online. "In direct contrast to those who
think the Web will be so revolutionary, the minor party candidates are not
using the Web," Ms. Kamarck said. "They're not there. And the major parties
are there." See also "Candidates for New York Governor Are Big Online
Spenders"
http://www.nytimes.com/library/tech/98/10/cyber/articles/28campaign.html
[SOURCE: New York Times (CyberTimes), AUTHOR: Rebecca Fairley Raney
rfr( at )nytimes.com]
http://www.nytimes.com/library/tech/98/10/cyber/articles/28campaign-side...

NIELSEN PARTNERS WITH WEB MEASUREMENT COMPANY
Issue: Mergers
Nielsen Media Research, the television audience measurement company, will
acquire a minority interest in NetRatings, a company that tracks Internet
usage. Nielsen's main competition in this new field will be the combined
Media Metrix and RelevantKnowledge companies -- they announced a merger on
October 12. "It's back to the future," said Jim Nail, an analyst with
Forrester Research. "Two weeks ago we started to solve the competing
technology problem that's been preventing a standard from evolving, with a
single vendor providing numbers for the industry. Well, now we're back to
where we were." According to John Dimling, Nielsen's president and chief
executive, the company had developed both a measurement technology and a
sample pool of Internet users this summer, "but we found that NetRatings had
a technology that was better than anyone else's, including ours, so we went
in that direction."
[SOURCE: New York Times (CyberTimes), AUTHOR: ]
http://www.nytimes.com/library/tech/98/10/cyber/articles/28ratings.html

INTEL IS INVESTING IN HEALTH FIRMS ON THE INTERNET
Issue: Health
Intel Corporation has made minority investments in health-care start-up
companies that are providing information on the Internet. Most of the
companies are providing personalized medical information. Making the
announcement, Intel Chairman Andrew Grove said that consumers are
transforming the medical industry with information from the Internet. He
admitted the corporation's support also was to encourage more use of
connected personal computers. Meeting participants presented data showing
that nearly half of Internet users have checked the credentials of their
doctors online and that some online support-group participants have improved
since joining the groups.
[SOURCE: Wall Street Journal (B4), AUTHOR: Dean Takahashi]
http://www.wsj.com/

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

COMMISSIONER NESS'S REMARKS AT THE MSTV ANNUAL UPDATE
Issue: Digital TV
Commissioner Ness makes four main points on the conversion to digital
television: 1) We've come a long way; 2) There will be bumps along the way;
3) The Government's formal role is winding down as the new TV antennas are
being turned on; and 4) You need to keep your viewers foremost in mind. Also
contains interesting tidbits like: "the FCC has granted 104 Construction
Permits for new digital stations."
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Ness/spsn817.html

GAY CHURCH SUES TV STATION FOR REJECTING AN INFOMERCIAL
Issue: Advertising
The Cathedral of Hope, the nation's largest gay and lesbian church, filled
suit against Chicago TV station WGN for breaking an agreement to air a
church infomercial. The Dallas-based church spent two years producing an
infomercial intended, in part, to counter the recent anti-homosexual
campaign launched by conservative Christian groups. "We wanted mostly to
reach out to lesbian and gay teen-agers but also people living in rural
areas, to tell them there is this possibility that you can be gay and
Christian, there is this possibility that you are a child of God, " said the
Rev. Michael Piazza, pastor of the Cathedral of Hope. In July, WGN-TV
accepted an initial payment and scheduled five showings of the
advertisement. One week later, according to church officials, the station
returned the check and canceled the agreement.
[SOURCE: New York Times (A16), AUTHOR: Pam Belluck]
http://www.nytimes.com/yr/mo/day/news/national/wgn-ads.html

=========
TELEPHONY
=========

PHONE FEE QUIRK BENEFITS NEW PROVIDERS
Issue: Telephony
Federal Communications Commission will soon have to determine how data and
voice services will be regulated in this age of convergence. Current
regulations have lead to a situation that benefits new local phone
companies, but incumbent carriers claim is unfair. Reciprocal compensation,
which was intended to help newly competing phone companies share the cost of
local calls, now allows local entrants to change incumbents for calls their
customers make to Internet service providers, who are most often carried by
the new entrants. The reciprocal compensation rules have resulted in more
than $500 million in fees that Regional Bells will have to pay to new phone
companies this year alone.
[SOURCE: New York Times (C4), AUTHOR: Seth Schiesel]
http://www.nytimes.com/yr/mo/day/news/financial/phone-fee.html

SBC COMMUNICATIONS, INC AND SNET MERGER
Issue: Mergers
From the news release: The Commission has approved the transfer of
communications licenses and authorizations from Southern New England
Telecommunications Corp. (SNET) to SBC Communications, Inc. (SBC), thereby
granting the companies' merger application. In accordance with the
Communications Act, merger applicants must persuade the Commission that
their proposed merger will serve the public interest. In this case, the
Commission concluded that the merger is unlikely to have any anticompetitive
effects or any other adverse effect on the public interest. The Commission
further found that the merger is likely to produce some tangible public
interest benefits, including possible improvements in wireless competition.
Based on these determinations, the Commission concluded that the merger is
in the public interest.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8077.html

TARIFFING OF DIGITAL SUBSCRIBER LINE SERVICES
Issue: Bandwidth
NTIA made a letter filing with the FCC on Tariffing of Digital Subscriber
Line Services, CC Docket Nos. 98-79, 98-103, 98-161, and 98-165: "A number
of incumbent local exchange carriers (ILECs) have filed tariffs with the
Commission covering so-called digital subscriber line (DSL) services, which
can provide end users with relatively high speed connections to Internet
Service Providers (ISPs). The Commission has solicited comment on the
question of whether such services are interstate offerings that can be
tariffed at the Federal level.(1) For the reasons set forth below, the
National Telecommunications and Information Administration (NTIA) believes
that the services at issue are interstate in nature. The Commission should
therefore permit the associated tariffs to go into effect, subject to the
conditions discussed below. The Commission should make clear, moreover, that
its decision (1) does not address the jurisdictional classification of
dial-up calls to ISPs; (2) does not disturb myriad State commission rulings
that, under existing interconnection agreements, such calls were intended to
be treated as local calls, thereby obliging ILECs to compensate competitive
local exchange carriers (CLECs) for dial-up calls to ISPs that are
terminated via CLECs' facilities; and (3) leaves in place the long-standing
access charge exemption for ISPs and other information service providers."
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/fccfilings/102798dslltr.htm

==========
SATELLITES
==========

IRIDIUM IS SET TO LAUNCH CALL SERVICE BUT CONCERNS MOUNT OVER PERFORMANCE
Issue: Satellites
A month after it had planned to start service, Iridium will begin
planet-wide communication service. This Sunday Iridium will turn on service
on its $5 billion system to commercial users. Iridium has 66 low-orbit
satellites to offer communications to or from any point on the globe. The
start of telephone service was delayed by quality problems which company
officials now say have been remedied by software changes and by
repositioning a series of antennas at satellite gateways where calls are
downlinked and connected to the commercial telephone system.
[SOURCE: Wall Street Journal (B8), AUTHOR: Quentin Hardy]
http://www.wsj.com/

====
JOBS
====

VACANCY ANNOUNCEMENT: ASSOCIATE ADMINISTRATOR FOR POLICY ANALYSIS AND
DEVELOPMENT
Issue: Jobs
The Associate Administrator for Policy Analysis and Development provides
advice and assistance to the Assistant Secretary for Communications and
Information and is the principal official of the National Telecommunications
and Information Administration (NTIA) responsible for the analysis and
development of domestic telecommunications and information policy positions
of the Executive Branch of the Federal government. In this capacity, the
incumbent is responsible for the analyses, review, and formulation of
domestic telecommunications and information policies; and, at the direction
of the Assistant Secretary, the presentation of such policies before the
Congress, the Federal Communications Commission, industry and the public.
Incumbent is responsible for the (1) development and management of NTIA's
domestic telecommunications and information policy program to meet long- and
short-term policy goals and objectives, (2) direction and review of policy
research studies and analyses which incorporate the legal, economic,
technical and social aspects of domestic telecommunications and information
policy (3) integration and coordination with other units of NTIA of the
results of these studies and analyses into policy options and
recommendations for the Executive Branch, and (4) preparation of program
plans, budget documents, and periodic progress reports. Close date Nov 13.
[SOURCE: NTIA]
http://www.ntia.doc.gov/otherinfo/documents/sesntia2.htm

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

IN ITS CASE AGAINST MICROSOFT, U.S. NOW CITES NOTE FROM APPLE (NYT)
U.S. SIGNALS NEW FOCUS IN MICROSOFT CASE (WSJ)
U.S. USES APPLE NOTES AGAINST MICROSOFT (WP)
Issue: Antitrust
One part of a host of new documents introduced by the Justice Department
Tuesday, was a handwritten note from Apple Computer's chief financial
officer Fred Anderson, explaining why Apple had agreed to use Micrsoft's
Internet Explorer on Macintosh computers. In the note, Anderson claims that
Microsoft had "threatened to abandon Mac" if the company did not make
Internet Explorer the default browser. If all goes as planed, tomorrow the
government will begin showing parts of the 20-hour videotaped deposition
given by Microsoft Chairman Bill Gates.
[SOURCE: New York Times (C1), AUTHOR: Steve Lohr & Joel Brinkley]
http://www.nytimes.com/library/tech/98/10/biztech/articles/28soft.html
[SOURCE: Wall Street Journal (A3), AUTHOR: John Wilke]
http://www.wsj.com/
[SOURCE: Washington Post (A8), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
Sorry, no Chicago Trib coverage today.

RACE/GENDER
The FCC Cuts Paperwork, Adds Race/ Gender Reporting (B&C)
The Whitemaling of The Network News (B&C)
Editors Delay Goal on Diversity And Add a Concern for Women (NYT)

CAMPAIGNS
This Year, Voters Can Track Last-Minute Contributions Online
(CyberTimes)
New Deal, New Venues (B&C)

INTERNATIONAL
European Law Aims to Protect Privacy of Data (NYT)
British Telecom Plugs In (WP)
Hong Kong Confronts Foreign Phone Giants (NYT)

TELVSION
TV Sports Lose Some of Their Power to Reach America's Men (NYT)
The Dawn of HDTV, Ready or Not (NYT)
EchoStar takes Big 4 to Court (B&C)

INTERNET
Higher-Speed Internet Standard Is Approved (NYT)
Making Tomorrow's Internet a Good Place for Children (NYT)
From Online to On the Line (WP)

TELEPHONY
Determining Universal Service Support for High Cost Areas (FCC)
CALEA (FCC)
Bringing Competition to the Local Telephone Markets (NTIA)

COMPUTER TECHNOLOGY
Microsoft, in Push to Extend Windows, To Unveil Smart-Card Operating
System (WSJ)

ANTITRUST
U.S. Antitrust Case Against Microsoft Is Closely Watched by Europe's
Officials (WSJ)
Microsoft's Refrain: Where's the Harm? (NYT)

============
RACE/GENDER
============

FCC CUTS PAPERWORK, ADD RACE/GENDER REPORTING
Issues: Minorities/Ownership
In presenting a new plan to streamline the applications and reports stations
file with the FCC, Chairman William Kennard announced that the agency will
now require TV and radio stations to identify the race and gender of their
owners. The new information gathering is part of the FCC's attempt to
promote opportunities for women and minorities. "Any effort to determine the
extent of minority and female ownership is a step in the right direction,"
said Gigi Sohn of the Media Access Project. "Until you identify the problem
you can't think of ways to solve it." The new electronic filing system has
caused some concern for commissioners Susan Ness and Gloria Tristani, who
worry that the public will no longer have the tools to interpret the
stations' data.
[SOURCE: Broadcasting & Cable (P16), AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/

THE WHITEMAILING OF NETWORK NEWS
Issue: Journalism/Race/Gender
An overwhelming amount of the "expert" SoundBits shown of the network
evening news come from white men. According to the "Who Speaks for America"
study -- sponsored by Freedom Forum's Free Press/Fair Press project -- 87
percent of TV experts are male and 92 percent are white, while women only
accounted for 13 percent and minorities just 6 percent. "There is no
justification" for the lack of diversity among quoted experts in network
newscasts, says Andrew Tyndall, director of the study. Tyndall concludes
that the networks are more likely just lazy than biased in their selection
of experts. He suggests that the extra effort to diversify the group of
experts might help pull in the younger, larger audiences that networks
crave.
[SOURCE: Broadcasting & Cable (P30), AUTHOR: Steve McClellan]
http://www.broadcastingcable.com/

EDITORS DELAY GOAL ON DIVERSITY AND ADD A CONCERN FOR WOMEN
Issue: Journalism
The governing board of the American Society of Newspaper Editors agreed last
week that "the nation's newsrooms must reflect the racial diversity of
American society by 2025 or sooner." The board also agreed to add women to
its annual census of newsrooms -- an attempt to find evidence of a "glass
ceiling" that prevents women from rising to the highest positions in
newsrooms. The group's original goal for newsroom diversity was 15% by the
year 2000. Minorities comprise 26% of the US population.
[SOURCE: New York Times (C8), AUTHOR: Felicity Barringer]
http://www.nytimes.com/yr/mo/day/news/financial/newspaper-women.html

==========
CAMPAIGNS
==========

NEW DEAL, NEW VENUES
Issues: Politics/Journalism
While the major broadcast networks will provide more coverage of this year's
mid-term election campaigns than ever, you will not be able to see most of
it on TV The major television networks will be distributing a majority of
their election coverage on cable and the Internet. Both CBS and ABC are
reducing their election night on-air coverage compared to the 1994 off-year
elections. "No matter how compelling the story, people out there don't seem
to be watching it as much as they used to," say Lane Vernardos, executive
producer of special events for CBS News. Network officials privately explain
that reduced election coverage also allows for fewer preemptions of the more
profitable entertainment shows.
[SOURCE: Broadcasting & Cable (P6), AUTHOR: Steve McClellan]
http://www.broadcastingcable.com/

THIS YEAR, VOTERS CAN TRACK LAST-MINUTE CONTRIBUTIONS ONLINE
Issue: Campaign Finance
Last minute campaign contributions are usually significant and overlooked,
but the Federal Election Commission and the California Secretary of State
are giving voters their first chance this year to review the flood of
last-minute campaign contributions on the Web. The California Voter
Foundation, a non-partisan group that champions online disclosure, estimates
that in California races, 25 percent of all contributions in the six months
before Election Day are made in the last two weeks. "This will be really the
first time we've had true disclosure," said Robert M. Stern, co-director of
the Center for Governmental Studies in Los Angeles, a non-profit research
group that examines campaign finance. "I think this is the forerunner of a
massive amount of information for the voters in two years." FEC
http://www.fec.gov. California Secretary of State http://www.ss.ca.gov
[SOURCE: New York Times (CyberTimes), AUTHOR: Rebecca Fairley Raney
rfr( at )nytimes.com]
http://www.nytimes.com/library/tech/98/10/cyber/articles/26donate.html

==============
INTERNATIONAL
==============

EUROPEAN LAW AIMS TO PROTECT PRIVACY OF DATA
Issue: Privacy/Electronic Commerce
The new European Union law protecting personal data went into effect October
25. Some fear the law may interrupt electronic commerce with the US because
it prohibits American-style buying and selling of personal data, Andrews
reports. The law is intended to block companies from using the data for uses
that consumers did not intend -- like selling it to other companies for use
in marketing. The risk in the US is that the law prohibits any company doing
business in the European Union from transmitting personal data to any
country that does not guarantee comparable privacy protection.
[SOURCE: New York Times (A1), AUTHOR: Edmund Andrews]
http://www.nytimes.com/library/tech/98/10/biztech/articles/26privacy.html

BRITISH TELECOM PLUGS IN
Issue: International
After attempting to buy MCI Communications Corp. last year, British
Telecommunications PLC created a new effort for international business in
July by opening a North American satellite broadcast operations center in
Washington, D.C. BT is hoping its new Washington "teleport" facility will
help it expand its less than 10% share of the U.S. market for satellite and
fiber-optics transmission of video signals. BT has worldwide revenue of $30
million a year for moving video signals for commercial clients, a figure
that makes them one of the top three in the field. In addition to an
increasing number of teleconferences for smaller businesses, the BT
operation has included recent transmissions of the Academy Awards program,
the World Series, ABC's Monday Night Football and will handle John Glenn's
return to space on Thursday.
[SOURCE: Washington Post (F5), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/digest/wtech002.htm

HOGN KONG CONFRONTS FOREIGN PHONE GIANTS
Issue: International/Competition
MCI Worldcom is warning Hong Kong that it may be left out of the information
age if it does not soon open its local telephone market to competition.
"Hong Kong is teetering on the edge," asserted Steve Liddell, president of
the MCI Worldcom Asia Pacific unit. "It will either embrace the brave new
age of telecommunications or return to an age of protectionism." Hong Kong
maybe is not buying this line: "It is not our policy goal to be the most
liberal telecommunications hub in Asia; that's a rather empty thing," said
Geoffrey Woodhead, a senior adviser to K.C. Kwong, the secretary for
information technology and broadcasting. In the next few weeks, the local
government will decide if it will allow additional competitors in the market
of 6.8 million people. In the last three years, Hong Kong has licensed three
local companies to provide service in addition to Hong Kong Telecom, the old
monopoly provider.
[SOURCE: New York Times (C1), AUTHOR: Mark Landler]
http://www.nytimes.com/yr/mo/day/news/financial/hongkong-telecom.html

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

TV SPORTS LOSE SOME OF THEIR POWER TO REACH AMERICA'S MEN
Issue: Television Economics
"Sports as an advertising and marketing vehicle is going through a midlife
crisis," said David Verklin, chief executive at Carat North America in New
York, a unit of Aegis Group PLC that buys time and space for marketers. "Ad
people have so fallen in love with sports that they assume no matter what
you buy, it will be fantastic," Verklin added. "But sports does not have
unlimited viewer loyalty, unlimited program capacity or unlimited price
elasticity." Sports used to deliver dependable large audiences, but ratings
for this month's World Series were the worst ever and football ratings are
down this year. Media outlets may lose millions if they have to lower their
advertising rates for programming they have spent so much on. "Sports was
once impervious, but some of its cachet may have disappeared," said Igiel,
who is executive vice president and director for U.S. broadcast at the Media
Edge unit of Y&R in New York. "Sports has held up better than most
programming," he added, "but it's now suffering some of the same erosion of
viewership that everything else on television has."
[SOURCE: New York Times (C1), AUTHOR: Stuart Elliott]
http://www.nytimes.com/yr/mo/day/news/financial/tvsports-ad-column.html

THE DAWN OF HDTV, READY OR NOT
Issue: Digital TV
Starting on or near November 1, more than three dozen television stations
will begin digital broadcasts. ABC plans to offer the first high-definition
program on Sunday -- the 1996 remake of Disney's 101 Dalmatians. After
buying digital TVs, viewers will be able to receive sharper, clearer
television images. But digital television receivers also hold the potential
to enrich the medium with user interaction of the sort now available on
computers, Brinkley writes. Although eventually all broadcats will be
digital, "I think we will be able to count our viewers on our fingers and
toes," said Martin Franks, a senior vice president for CBS. "It's fairly
clear that there are more transmitters than receivers at this point."
Digital sets are expensive -- around $7,000 each. Early programming is
expected to duplicate current, 'analog' shows.
[SOURCE: New York Times (C1), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/98/10/biztech/articles/26hdtv.html

ECHOSTAR TAKES BIG FOUR TO COURT
Issue: Satellite
As part of the continuing battle between broadcasters and satellite TV
distributors over which households can legally receive imported network
signals, EchoStar filed a suit last week against the Big Four broadcast
Networks. EchoStar wants the courts to discard the old method of determining
customer eligibility for imported signals for a more liberal model. A recent
ruling in Florida determined that satellite companies were illegally
importing network signals to nearly a million viewers.
[SOURCE: Broadcasting & Cable (P19), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/

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

HIGER-SPEED INTERNET STANDARD IS APPROVED
Issue: Bandwidth
The International Telecommunications Union, a United Nations Group, has
approved a technical standard for digital subscriber line service (DSL) put
forth by Microsoft, Intel and large, local phone companies. The version of
DSL promises to deliver data to the home at a speed of 1.5 million bits per
second. Phone companies will use DSL technology to compete with cable
modems. DSL modems should be available in stores by mid-1999 and priced
around $150.
[SOURCE: New York Times (C2)]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/26digi.html

MAKING TOMORROW'S INTERNET A GOOD PLACE FOR CHILDREN
Issue: Internet
Advocates for children, professors, software producers and others gathered
in Washington to ask how the Internet can avoid Newt Minow's famous
description of television as a "vast wasteland.". What can be done, they
wanted to know, to insure that the Internet and other technologies become
something edifying rather than stultifying for children? "We need to have
this debate and discussion now at the outset, while this medium is at this
fluid stage, so we can figure out how to do it right this time, as opposed
to television," said Kathryn C. Montgomery, president of the non-profit
Center for Media Education. A conference in Washington, DC last week focused
not on online pornography or pedophiles. Instead, participants tried to
figure out what is known and unknown about the effects of the emerging media
on children, and to begin to set a national agenda for insuring that
technology fulfills its promise, that it becomes more than a glitzy
extension of the popular commercial culture.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels
mendels( at )nytimes.com]
http://www.nytimes.com/library/tech/98/10/cyber/articles/25children.html

FROM ONLINE TO ON THE LINE
Issue: Long Distance
AT&T is presenting a new way to chat on the Internet. They want people to
forego the keyboard and use the phone! The new Chat 'N Talk service,
available through Lycos and other Internet services, allows people chatting
on the Web to quickly and anonymously shift their conversation to the
telephone. For those agreeing to move offline to use the phone system some
information, including a telephone number and a credit card number from the
initiator and a telephone number from the second party must be entered. By
using a password system AT&T promises privacy. Neither party sees the
other's telephone number. The person who initiates the call pays 15 cents
per minute.
[SOURCE: Washington Post (F22), AUTHOR: Robert O'Harrow Jr.]
http://www.washingtonpost.com/wp-srv/WPlate/1998-10/26/029l-102698-idx.html

==========
TELEPHONY
==========

DETERMINIONG UNIVERSAL SERVICE SUPPORT FOR HIGH COST AREAS
Issue: Universal Service
1) The Commission adopted the framework for estimating the costs incurred by
certain telephone companies for providing services to consumers in rural,
insular, and other high cost areas. Combined with specific variables, or
"inputs," that will be determined later, this framework will provide cost
information that can be used as part of the calculation of the amount of
universal service support that non-rural carriers may receive for serving
high cost areas. (Yeah, we know, time to make calculations like this would
be our dream job as well) 2) A Memorandum Opinion and Order and Further
Notice of Proposed Rulemaking addressing four issues: A) interim guidelines
for wireless providers for reporting their percentage of interstate wireless
telecommunications revenues; B) the Commission asked for comment on
establishing rules to deal with those situations in which universal service
contributors cannot derive the amounts of their intrastate and interstate
end-user telecommunications revenues readily from their books of account; C)
the Commission asked for comment on the extent to which its universal
service rules facilitate the provision of supported services by service
providers, such as wireless telecommunications providers and cable
operators, that historically have not provided services eligible for federal
universal service support; and D) the Commission asked for comment on how
much, if any, local usage eligible telecommunications carriers should be
required to provide to customers as part of a "basic service" package.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8074.html
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8073.html

CALEA
Issue: Wireless/Privacy
No, not the cartoon lion, that was Kimba. The Communications Assistance for
Law Enforcement Act (CALEA) "generally requires a telecommunications carrier
to ensure that its equipment, facilities, or services are capable of: 1)
expeditiously isolating, and enabling the government, pursuant to a court
order or other lawful authorization, to intercept all wire and electronic
communications; 2) providing access to call-identifying information that is
reasonably available to the carrier; 3) delivering intercepted
communications and call-identifying information to a Law Enforcement Agency
(LEA) in an acceptable form and at a remote location; and 4) protecting the
privacy and security of communications and call-identifying information not
authorized to be intercepted." The FCC has adopted a Further Notice of
Proposed Rulemaking addressing technical requirements for wireline,
cellular, and broadband Personal Communications Services (PCS) carriers to
comply with the assistance capability requirements of the Act.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Engineering_Technology/News_Releases/1998/nret80
14.html

BRINGING COMPETITION TO THE LOCAL TELEPHONE MARKETS
Issue: Competition
"Now that we are nearly 1,000 days into the 1996 Telecommunications Act, I
can think of no better time than this conference to assess how far we have
come in promoting competition in telecommunications. I'd like to take this
opportunity to evaluate what has worked, what hasn't, and what we should do
from here. The good news is that we are now seeing increasing choice and
services in the local telephone market. After much anticipation, cable
companies are now beginning to offer telephone service. Cox, for example, is
offering service in Phoenix, Omaha, and Orange County. MediaOne is now
offering cable telephony service in Atlantia, Los Angeles, and certain areas
of Massachusetts, promising rates up to 47 percent lower than the
competition. And AT&T, of course, is banking on the success of cable
telephony in merging with TCI...."
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/speeches/comptel98.htm

======================
COMPUTER TECHNOLOGY
======================

MICROSOFT, IN PUSH TO EXTEND WINDOWS, TO UNVEIL SMART-CARD OPERATING SYSTEM
Issue: Computer Technology
Microsoft Corporation is poised to announce Tuesday a new operating system
for smart cards. Smart cards are credit-card sized cards that store
information, can identify card users and run small programs. Use of smart
cards is more popular in Europe where the cards are used for mobile phone
information, access to public transportation, and banking functions. Their
use is expected to expand in the U.S. as electronic commerce grows.
Microsoft's entry into the market with a Windows-based system is expected to
give a boost to the adoption of smart-card technology. Several operating
systems already exist. For Microsoft the effort may be a defensive effort
to stem the growth of Sun Microsystems' Java system.
[SOURCE: Wall Street Journal (B6), AUTHOR: Kimberley A. Strassel & David Bank]
http://www.wsj.com/

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

U.S. ANTITRUST CASE AGAINST MICROSOFT IS CLOSELY WATCHED BY EUROPE'S
OFFICIALS (WSJ)
MICROSOFT REFRAIN: WHERE'S THE HARM? (NYT)
Issue: Antitrust
Days before the opening of the Microsoft Corporation's antitrust trial here
in the U.S., a similar antitrust complaint was filed in Italy. While the
Italian antitrust authority has not ruled on whether it will consider the
complaint, a growing number of European authorities are taking interest in
the Microsoft trial which begins its second week today. Two groups within
the European Commission, competition authorities and electronic commerce
officials, have expressed concerns about Microsoft's dominance and could
create additional confrontations with Microsoft after the U.S. trial. One
EC official said, "Once you have universal platforms, openness should rule."
A Microsoft lawyer calls the Italian suit, "the whole hodgepodge of old
allegations."
[SOURCE: Wall Street Journal (B8), AUTHOR: Brandon Mitchener]
http://www.wsj.com/
[SOURCE: New York Times (C2), AUTHOR: Steve Lohr]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/26soft.html

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

TELEVISION
Digital TV Is Set to Transform Industry (WSJ)

BROADBAND
AOL Raises Static With Cable Deal (WP)
America Online Braces for Rivals in Cable Industry (WSJ)

MERGER
Time Warner, AT&T Discuss Phone Venture (WSJ)
AT&T Says TCI Deal is Proceeding, But Some Report
Unresolved Issues (WSJ)
FCC to Question Telecom Executives About Industry's Recent Merger
Wave (WSJ)

INTERNET
New Method for Web Ads Stirs Attention (WSJ)
Web-Based Art That's Not So Straight (CyberTimes)

EDTECH
Computer Haves and Have-Nots in the Schools (NYT)

TELEPHONY
Affordability of Telecommunications Services and Consumer-Education
Issues (FCC)
Truth in Billing (FCC)

ANTITRUST
Microsoft Uses E-Mail From Netscape to Contest Antitrust Case (NYT)
Microsoft points to Netscape e-mail (ChiTrib)
Full Speed Ahead in Microsoft Trial (WP)
Netscape Secretly Offered Microsoft a Stake (WSJ)

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

DIGITAL TV IS SET TO TRANSFORM INDUSTRY
Issue: Digital Television
November 1 marks the official beginning of U.S. digital television
broadcasting. Around 45 large-market television stations will begin digital
broadcasting while continuing their traditional analog telecasts. Most
viewers do not yet have digital TV receivers, although sales this year are
expected to be around 20,000 for the $7,000 to $11,000 sets. The onset of
mass viewership is not expected until well into the next decade with other
digital services expected to emerge. "Over time, digital transmissions will
rearrange the broadcasting landscape, changing equipment, programming,
channel numbering and televisions themselves." Most digital TV's are wider
and will be sold as components, with the receiver sold separately from the
screen. While Gunther Meisse of WMFD-TV in Mansfield, Ohio is operating in
a smaller market, he is already planning to have his digital transmitter
going by December after an outlay of about $1 million. Despite not having
any viewers immediately, he sees the upsides as an improved channel location
for his digital signals and enough signal capacity to send out three or four
kinds of programming. Also he and other small market stations are hoping
national advertisers will choose them for their digital capability. [Look
for a Headlines Extra on DTV later today]
[SOURCE: Wall Street Journal (B6), AUTHOR: Evan Ramstad]
http://www.wsj.com/

=========
BROADBAND
=========

AOL RAISES STATIC WITH CABLE DEAL (WP)
AMERICA ONLINE BRACES FOR RIVALS IN CABLE INDUSTRY (WSJ)
Issue: Broadband/Online Services
America Online is beginning an aggressive campaign to prepare for the coming
of high-speed online service to homes using cable television connections.
The service will provide 24-hour connectivity and much faster Internet
access than the modems used in most homes today. Earlier this year AOL
purchased NetChannel, an online-service-via-TV and recently hired Mario
Vecchi, an experienced broadband veteran to lead their effort. They have
begun discussing relationships with cable providers such as Time Warner.
But their biggest step may come in a looming request to the FCC demanding
that all Internet service providers get equal access to cable TV lines that
offer high-speed Web access subjecting cable operators to the same
open-access requirements that telephone companies have. AOL's request will
present a roadblock to the merger of AT&T and TCI because AT&T would be
getting access to TCI's cable modem service called At Home.
[SOURCE: Washington Post (C1), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/WPlate/1998-10/22/255l-102298-idx.html
[SOURCE: Wall Street Journal (B1), AUTHOR: Thomas E. Weber]
http://www.wsj.com/

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

TIME WARNER, AT&T DISCUSS PHONE VENTURE
AT&T SAYS TCI DEAL IS PROCEEDING, BUT SOME REPORT UNRESOLVED ISSUES
Issue: Merger
AT&T, in the middle of ironing out an acquisition of Tele-Communications,
Inc., is talking seriously with Time Warner about a deal. If AT&T were to
pull off both mergers, it would be able to move on its ambitious plan to go
up against the Bell operating companies which dominate local telephone
business. Time Warner's 12 million subscribers would double the number of
consumers that AT&T could pitch a bundle of phone services, including local
service (to go with AT&T's long distance) and Internet access. Some experts
suggest an announcement of an AT&T and Time Warner agreement may be a few
weeks away. Gerald Levin of Time Warner recently said, "We can see a
transaction emerging in the near term." The high-speed capability of cable
connections make local phone service and Internet connectivity attractive.
Meanwhile some industry executives say many issues remain unresolved in the
AT&T and TCI merger. The emerging structure creates two distinct units, one
involved in business markets and the other handling consumers.
[SOURCE: Wall Street Journal (B1), AUTHOR: Eben Shapiro]
[SOURCE: Wall Street Journal (B8), AUTHOR: Rebecca Blumenstein & Leslie Cauley]
http://www.wsj.com/

FCC TO QUESTION TELECOM EXECUTIVES ABOUT INDUSTRY'S RECENT MERGER WAVE
Issue: Merger
In a FCC hearing today representatives of the firms in three planned mergers
will be asked to justify them. The mergers in question are SBC
Communications with Ameritech, AT&T with TCI, and Bell Atlantic with GTE.
All three mergers are under review from both the Justice Department and the
FCC. FCC Chairman William Kennard says, "The proponents are challenged to
demonstrate how these are consistent with the pro-competitive components of
the [telecommunications] act." Ameritech CEO Richard Notebaert says that
consolidations are "a natural outcome of competing in a world market." The
role of the FCC is to determine whether the mergers are in the public
interest. The FCC has never blocked a merger. A second hearing will be
held later in the year to hear the views of consumer groups and others on
the proposed mergers.
[SOURCE: Wall Street Journal (B7), AUTHOR: John Simons]
http://www.wsj.com/

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

NEW METHOD FOR WEB ADS STIRS ATTENTION
Issue: Electronic Commerce
"Live" banners are a new kind of advertisement on Internet websites.
Traditional banner ads were designed to attract Web users to click on the ad
and go to the site of that company. However, industry estimates are that
only about 1% of users "click-through" to see the advertiser's site. The
new banners will allow additional information to be displayed without taking
the Internet user away from the site in use. Some companies, including
Procter & Gamble and Barnes & Noble, have begun use of the ads. The
downsides of the new banners are that they are more expensive to develop and
they load slowly using current modem speeds.
[SOURCE: Wall Street Journal (B1), AUTHOR: William M. Bulkeley]
http://www.wsj.com/

WEB-BASED ART THAT'S NOT SO STRAIGHT
Issue: Arts
Today, the two year-old Queer Arts Resource (QAR) online gallery is
launching its first exhibition of Web-based art. Barry Harrison, director of
QAR, founded the not-for-profit site as "an alternative to all the
sex-oriented sites and chat rooms that often pretend to be about gay art or
queer art, and are not." In fact, one of the works in the Net Selections
show, "Women with Beards", is a parody of X-rated Internet sites. This
exhibit, like the nearly two dozen previous QAR shows, was commissioned by a
committee, a subset of QAR's 10-member board, and assembled by a freelance
curator.
[SOURCE: New York Times (CyberTimes), AUTHOR: Matthew Mirapaul
mirapaul( at )nytimes.com]
http://www.nytimes.com/library/tech/98/10/cyber/artsatlarge/22artsatlarg...

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

COMPUTER HAVES AND HAVE-NOTS IN SCHOOLS
Issue: EDUCATION
Increasingly, teachers around the country are facing the challenge of
teaching students with varying levels of computer literacy. While many
pupils now have a computer in the home - a recent study found that 58
percent of households with children have computers -- there are still others
who's only access to technology is in schools and libraries. These students
are the ones who tend to lag behind in basic computing skills. "I think
there is an issue here -- the issue of the haves and have-nots," said David
Tremblay, senior industry analyst for ZD Market Intelligence, a market
research company. "Lower-income households are much less likely to have
personal computers. You can't assume everyone has a computer." Karen
Marsall, a New Jersey mother of four and ex-computer aid in the classroom
noticed the gap between those with access and those without. "If these
issues aren't addressed in education, the gap could widen between the kids
who have the knowledge and the kids who don't."
[SOURCE: New York Times (D1), AUTHOR: Debra Nussbaum]
http://www.nytimes.com/library/tech/98/10/circuits/articles/22have.html

=========
TELEPHONY
=========

AFFORDABILITY OF TELECOMMUNICATIONS SERVICES AND CONSUMER-EDUCATION ISSUES (FCC)
Issue: Universal Service
Next week, the FCC has planned an open meeting to discuss whether the goal
of affordable telephone service is being met and whether there are policies
that the Joint Board should consider recommending to continue to meet the
goal of affordable service.
In its Universal Service Order, the Commission concluded that both the
states and the federal government have a role in ensuring that all Americans
benefit from affordable telecommunications service, consistent with the
statutory mandate embodied in the Telecommunications Act of 1996. At the
hearing, panelists representing a broad range of interests and perspectives
will address this question and also discuss whether federal and state
regulators are adequately informing consumers of the issues surrounding the
new competitive marketplace and the new federal universal service support
mechanisms [SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da982112.html

TRUTH IN BILLING
Issue: Telephone Regulation
The FCC will host a public forum to discuss how to make telephone bills more
readable and understandable on Friday, October 23 at 8:30 AM at the
Commission Meeting Room at 1919 M Street in Washington. The forum is part
of a FCC proceeding on the provision of information in telephone bills to
consumers. The Commission initiated this proceeding with its Notice of
Proposed Rulemaking regarding Truth-in-Billing and Billing Format.
Participants will include industry and consumer groups and other state and
federal governmental bodies.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da982055.html

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

MICROSOFT USES E-MAIL FROM NETSCAPE TO CONTEST ANTITRUST CASE (NTY)
MICROSOFT POINTS TO NETSCAPE E-MAIL (ChiTrib)
FULL SPEED AHEAD IN MICROSOFT TRIAL (WP)
NETSCAPE SECRETLY OFFERED MICROSOFT A STAKE (WSJ)
Issue: Antitrust
The Microsoft antitrust case heats up in third day of testimony.
[SOURCE: New York Times (C1), AUTHOR: Steve Lohr]
http://www.nytimes.com/library/tech/98/10/biztech/articles/22microsoft-anti
trust.html
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Andrew Zajac]
http://chicagotribune.com/textversion/article/0,1492,ART-17101,00.html
[SOURCE: Washington Post (A19), AUTHOR: David Segal]
http://http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/...
[SOURCE: Wall Street Journal (B7), AUTHOR: John Wilke]
http://www.wsj.com/

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
Who had Scott Brosius as their "Pick to Click"?

INTERNET
U.S. Expected to Support Shift in Administration
of the Internet (NYT)
Privacy Rules Send U.S. Firms Scrambling (WSJ)
Caught in a Web of 'Sticky' Services (CyberTimes)

TIIAP
1998 Networks for People (NTIA)

CAMPAIGNS
Attack Ads Carpet TV; High Road Swept Away (WP)
A Grass-Roots Message on Reform (NYT)

BROADCAST
Direct-Broadcast Satellite Companies Expected to Face
Public-Interest Rules (WSJ)
Networks Face A Weak Kickoff For Pro Football (WSJ)
Speech: Chairman Kennard at NAB Radio Convention (FCC)

MICROSOFT
Microsoft Assailed in Court (WP)
'Microsoft Engaged in . . . Predatory Acts' (WP)
Gates Under Fire as Microsoft Trial Opens (WSJ)
Antitrust Case Relies Heavily on Events at a 1995 Meeting (NYT)
Government Goes After Gates in its Opening Argument (ChiTrib)

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

U.S. EXPECTED TO SUPPORT SHIFT IN ADMINISTRATION OF INTERNET
Issue: Internet
Today, the Clinton Administration is expected to commit itself to hand over
the administration of Internet to a nonprofit corporation. The Internet
Corporation for Assigned Names and Numbers (Icann) will administer the
Domain Name System, which doles out names for the Internet. While the idea
of a policy making body that crosses geographic boundaries has won broad
support, the proposed corporation has received criticism from governments in
Latin America and Africa, who complained that their regions were not
represented on the corporation's proposed board.
[SOURCE: New York Times (A1), AUTHOR: Amy Harmon]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/20internet.html

PRIVACY RULES SEND U.S. FIRMS SCRAMBLING
Issue: Privacy
"Cautiously optimistic" is the view of an IBM representative as the US
braces for a tightening of European right to privacy provisions. On Monday,
October 26, new regulations take effect in the European Union which could
have an effect on the passage of information between the US and Europe. Any
country that does not provide adequate data protection will not be able to
receive such basic information as names, addresses and ethnicity from direct
mail lists, travel reservations, Internet purchases, or medical records from
within the European Union. And the US may not meet the standards. The
Commerce Department has been working with European representatives to assure
a cutoff of information does not occur with the change in European rules.
[SOURCE: Washington Post (C1), AUTHOR: Robert O'Harrow, Jr.]
http://www.washingtonpost.com/wp-srv/frompost/oct98/privacy20.htm

CAUGHT IN A WEB OF 'STICKY' SERVICES
Issue: Internet
The challenge of getting customers to stay with a particular portal site [we
love www.fcc.gov, by the way], ISP or Web retailer has been dubbed
"stickiness." The strategy is to get people to invest time in personalizing
services -- entering company codes to track stocks or typing in friends'
names for chat sessions and instant messaging -- so they wouldn't want to
bother to leave for another site. "With portals, the battle is now about
customer retention, and it's a defensive battle," said Barry Parr, director
of Internet and electronic commerce strategies at International Data Corp.,
a research and consulting firm. "As a result, we'll see fewer changes in
market share in the future. It's like World War I trench warfare, where
every hundred yards will be very expensive." "It starts with e-mail," said
Barry Schuler, president of AOL Interactive Services. "Then you get them
interested in a buddy list, so they can find their friends and family. Then
you move them into shopping, and managing their money, and gift reminder
services. When people adopt things online that they do offline, then they
can get stuck to it -- all the better because it creates a big switching
barrier."
[SOURCE: New York Times (CyberTimes), AUTHOR: Bob Tedeschi]
http://www.nytimes.com/library/tech/98/10/cyber/articles/20commerce.html

=====
TIIAP
=====

1998 NETWORKS FOR PEOPLE: SOCIETY & INFORMATION INFRASTRUCTURE,
THE NEXT GENERATION
Issue: TIIAP
NTIA's forum to discuss the connections of people, information technology,
and services across a broad spectrum of American life will be held December
8 - 9. Save the date to participate in this important conference.
[SOURCE: NTIA]
http://www.ntia.doc.gov/otiahome/tiiap/conference/Title_Page.html

================
MEDIA & POLITICS
================

ATTACK ADS CARPET TV; HIGH ROAD SWEPT AWAY
Issue: Campaigns/Advertising
In resent years there has been much public outcry about negativity of
political advertising, yet the mid-term elections commercials are as full of
attacks as ever. Candidates accuse their opponents of outrageous positions,
which they back up by reports of votes and statements taken out of context.
While not technically false, many ads simply mislead or confuse voters.
[SOURCE: Washington Post (A1), AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-srv/politics/campaigns/keyraces98/stories/
ads102098.htm

A GRASS ROOTS MESSAGE ON REFORM
Issue: Campaign Reform
Even though Congress has just killed the most recent campaign finance bill
to reach the floor, that does not mean that public support for reform is
waning. If Massachusetts and Arizona are any indications, there appears to
be a growing momentum for change. Voters in those two states will be
deciding on proposals for publicly financed campaign systems this Fall. If
the rest of country continues to speak up about campaign financing,
Washington just might have to listen.
[SOURCE: New York Times (A30), AUTHOR: New York Times Editorial Staff]
http://www.nytimes.com/yr/mo/day/editorial/20tue2.html

=========
BROADCAST
=========

DIRECT-BROADCAST SATELLITE COMPANIES EXPECTED TO FACE PUBLIC-INTEREST RULES
Issue: Satellite TV
The FCC on Thursday is expected to require direct-broadcast satellite
operators to set aside 4% to 7% of their channel capacity for
public-interest programming. The FCC definition of the requirement will be
"noncommercial programming that is educational or instructional in nature."
The decision is based on the 1992 cable television law but action had been
held up because of legal wrangling. The satellite companies say the
public-service requirement is burdensome. Unclear presently is how the FCC
and the satellite companies will determine what is "informational" or
"educational."
[SOURCE: Wall Street Journal (B8), AUTHOR: John Simons]
http://www.wsj.com/

NETWORKS FACE A WEAK KICKOFF FOR PRO FOOTBALL
Issue: Television Economics
They are blaming the exciting baseball season. They are blaming Monica
Lewinsky. The TV networks are looking for any reason to explain a nearly
10% drop in all of the NFL telecasts on network and cable television. With
a new, expensive contract between the broadcasters and the NFL, some
networks are already slashing prices on commercial time and admitting they
will end with a financial loss on football for the year. That comes only
months after networks raised commercial rates 15% to 20% this season. Some
advertisers are asking for free air time making up for the smaller
audiences. Ratings for ABC's"Monday Night Football" are off 11%. Ratings
for the Sunday night broadcasts on ESPN and Fox's Sunday afternoon games are
off about 10%. CBS seems to be holding its own with its Sunday afternoon
telecasts and says it will not lose money this year. Besides the late
season interest in baseball and the preoccupation with national news
coverage recently, other reasons offered for the decline are the glut of
football (including games, talk shows, pregame and postgame shows), a broad
decline in the audience for network television, and an earlier start time
for the Monday night game (making it less attractive on the West Coast).
David Hill, president of Fox Broadcasting Co. says, "We're seven weeks in.
You can't judge any season until it's over."
[SOURCE: Wall Street Journal (B1), AUTHOR: Stefan Fatsis & Kyle Pope]
http://www.wsj.com/

SPEECH: CHAIRMAN KENNARD AT NAB RADIO CONVENTION
Issue: Radio
Remarks by Chairman Kennard to NAB Radio Convention in Seattle, Washington
on October 16, 1998: The industry had over 13 billion dollars in revenue
last year. Radio stocks have seen record growth. And radio is part of the
daily lives of virtually every American. Ninety-five percent of Americans
listen to radio every day. They spend an average of 20 hours per week
listening to the radio. But, of course, radio means much more than profits.
Radio connects people to their communities -- perhaps more than any other
medium. Radio is our nation's first electronic medium. And after all these
years, radio remains unique, and most importantly, it remains local. It is
the lifeblood of local information in our culture.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Kennard/spwek832.html

=========
MICROSOFT
=========

MICROSOFT ASSAILED IN COURT (WP)
'MICROSOFT ENGAGED IN . . . PREDATORY ACTS' (WP)
GATES UNDER FIRE AS MICROSOFT TRIAL OPENS (WSJ)
ANTITRUST CASE RELIES HEAVILY ON EVENTS AT A 1995 MEETING (NYT)
GOVERNMENT GOES AFTER GATES IN ITS OPENING ARGUMENT (CT)
Issue: Antitrust
Day One: The opening arguments by the Justice Department's lawyers on
Monday charged that Bill Gates personally directed a campaign to crush a
competitor that threatened his company's monopoly. The Microsoft Corp.
campaign was aimed at Netscape Communications and its Internet browser.
Microsoft had planned a browser of its own for use with the Windows 95
operating system. Playing four video clips of Bill Gates' pretrial
deposition, the lawyers challenged his credibility under oath. Gates
claimed not to know of key events that the case involves; memoranda
presented suggest that he was following the events. The government's lead
counsel, David Boies, charged that Microsoft made exclusionary deals
favoring its own browser. He also claimed Microsoft restricted computer
software to be placed on new PCs. Microsoft will deliver its opening
arguments today in the non-jury antitrust trial which was brought by the
Justice Department and 20 states.
[SOURCE: Washington Post (A1), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm
[SOURCE: Washington Post (A10), AUTHOR: Rajiv Chandrasekaran & Mark Leibovich]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/stories/19
98/barksdale102098.htm
[SOURCE: Wall Street Journal (B6), AUTHOR: John R. Wilke]
http://www.wsj.com/
[SOURCE: New York Times (A1), AUTHOR: Steve Lohr]
http://www.nytimes.com/library/tech/98/10/biztech/articles/20microsoft-test
ify.html
[SOURCE: Chicago Tribune (Sec 1, p.1), AUTHOR: Andrew Zajac]
http://chicagotribune.com/textversion/article/0,1492,SAV-9810200128,00.html

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