November 1998

Communications-related Headlines for 11/30/98

CABLE & TELEVISION
1999: Big Year For Cable Regulation (B&C)
Digital Public Interest Demands Toned Down (B&C)
FCC Says Nets Do OK Job of Kids TV (B&C)
Media Talk: Internet News Fanatics Prefer Television Sites (NYT)

INTERNET
The Web's Free Ride (NYT)
U.S. Report on Net Commerce Set for Release (NYT)
White House to Unveil Plan to Expand Internet Projects in Developing
Nations (WSJ)
Start-Ups Pin Hopes on an Internet Route Through the Sky (NYT)
Internet Advertising, Just Like Its Medium, Is Pushing Boundaries (WSJ)
Where to Store the E-Mail (WP)
One Year Old and Off to School (WP)
Dept of Commerce and ICANN (NTIA)

CAMPAIGN FINANCE REFORM
Candidate Carte Blanche (NYT)

RADIO
In Military-Run Niger, Station Manager Sees Talk Radio as Democratic
Duty (NYT)

==================
CABLE & TELEVISION
==================

1999: BIG YEAR FOR CABLE REGULATION
Issue: Cable
The cable industry is awaiting some important decisions from Washington in
the coming year. One of the biggest questions facing the industry is weather
they will be required to carry both broadcasters' analog and digital signals
as they make the transition to digital TV. The FCC will also determine
weather cable Internet services should be regulated as local telephone
service is. Meanwhile, Congress is scheduled to review laws regarding
satellite TV, which could potentially provide important competitor to cable.
Congress will also consider a bill to encourage competition by restricting
exclusive deals between programmers and distributors. Additionally, the bill
would allow communities to determine if their local cable franchise is
offering desirable programming at a fair price. If not, they could be forced
to offer different programming packages.
[SOURCE: Broadcasting and Cable (p98), AUTHOR: Bill McConnell and Paige
Albiniak]
http://www.broadcastingcable.com/

DIGITAL PUBLIC INTEREST DEMANDS TONED DOWN
Issue: DTV
The Advisory Committee on the Public Interest Obligations of Digital TV
Broadcasters, known as the Gore Commission, has softened its recommendation
that cable operators should fully carry broadcasters' signals in return for
broadcasters meeting minimum public interest requirements. The current draft
of the committee's report still recommends mandatory minimum standards for
digital broadcasters, but it no longer ties 'must carry' to the fulfillment
of the minimum standards. 'Must carry' is offered as one option of
expediting the deployment of digital broadcasters that have met their
obligations to the American public. [For more info see
http://www.benton.org/Policy/TV/piac.html]
[SOURCE: Broadcasting and Cable (p11), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/

FCC SAYS NETS DO OF JOB OF KIDS TV
Issue: Children's TV
While the major broadcast networks won approval from the Federal
Communications Commission for their programming aimed at children, media
advocacy groups say that both the networks and the FCC deserve bad grades
when it comes to kids. The Center for Media Education says there needs to be
stronger rules to prevent excessive preemption of kids' shows during
Saturday morning sporting events. The FCC found that children's shows were
preempted nearly 7% of the time on networked owned-and-operated stations.
[SOURCE: Broadcasting and Cable (p18), AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/

MEDIA TALK: INTERNET NEWS FANATICS PREFER TELEVISION SITES
Issue: Internet
Broadcast and cable television news sites on the Internet attract more
people for a quick look at breaking headlines than newspaper sites,
according to a recent survey by Jupiter Communications. Eighty-seven
percent of Internet news consumers responding to the survey felt online news
was at least as reliable as more traditional news outlets. The main
attractions for those surveyed: national and international news (61%),
business news (39%), sports news (34%), and entertainment news (31%). The
study also concluded that few people on the Internet look at the video clips
that are available for some news events.
[SOURCE: New York Times (CyberTimes), AUTHOR: Felicity Barringer]
http://www.nytimes.com/yr/mo/day/news/financial/media-talk.html

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

THE WEB'S FREE RIDE
Issue: Electronic Commerce
After heavy lobbying from the Internet industry, Congress overwhelmingly
passed the Internet Tax Freedom Act. Ledbetter warns that when consensus is
this strong, something is being ignored. First there is the problem of the
"digital divide" -- half the US homes with annual incomes over $75,000 have
Internet access while only 10% of the rural poor use the global computer
network. The Internet tax moratorium creates a duty-free zone that is
largely inaccessible for the poor. Second, electronic commerce confounds
traditional tax categories when a person in Chicago can make a purchase from
a Seattle company that maintains a website in California and ships the
product from Tennessee. The Clinton Administration will release an
interagency report on the Internet today and the White House is expected to
stay laissez-faire on Web commerce. A Congressionally-appointed advisory
commission will also study Internet taxation. Ledbetter concludes: "State
and local governments need to make the commission understand that they lose
revenue every time an Internet purchase is made, and that it must remember
those who don't have the opportunity to buy on the Web."
[SOURCE: New York Times (A27), AUTHOR: James Ledbetter, The Industry Standard]
http://www.nytimes.com/yr/mo/day/oped/30ledb.html

U.S. REPORT ON NET COMMERCE SET FOR RELEASE
Issue: Electronic Commerce
Ira Magaziner who has headed up the Clinton Administration's interagency
working group in electronic commerce will be wrapping up his White House
duties in the next few days following the release today of a report
establishing the foundation of the Administration's new Internet commerce
policy. The report argues for stronger consumer protection and privacy
rights. Many of the laissez-faire approaches supported by Magaziner seem
very different from his work on the proposed Clinton health care plan that
was criticized as government meddling. After his work on the failed health
care plan he began explorations in the Internet. Magaziner says, "It became
very clear to me that if we set the right environment, the Internet and
electronic commerce were going to explode." Magaziner feels he has
accomplished more than he expected and is prepared to return to private life.
[SOURCE: New York Times (C1), AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/98/11/biztech/articles/30net.html

WHITE HOUSE TO UNVEIL PLAN TO EXPAND INTERNET PROJECTS IN DEVELOPING NATIONS
Issue: Internet Regulation
The White House has scheduled a ceremony today to announce a new electronic
commerce agenda. The plan includes: 1) financial assistance for Internet
projects in developing nations, 2) more research on information
technology's economic impact, 3) promotion of Internet use by small
businesses with Small Business Administration loans, 4) a request to
international trade groups to establish a set of consumer-protection
standards, and 5) a promise to keep the Federal Communications Commission's
regulations away from cyberspace. The most sweeping proposal would link
remote areas to the Internet via satellite through private-sector funding
and World Bank loans. The White House will also announce the replacement for
Ira Magaziner, the departing leader of the Administration's Internet
oversight efforts.
[SOURCE: Wall Street Journal (B6), AUTHOR: John Simons]
http://www.wsj.com/

START-UPS PIN HOPES ON AN INTERNET ROUTE THROUGH THE SKY
Issue: Internet
In remote areas where traditional land lines are expensive or unavailable,
some customers have started to use satellites to access the Internet.
Start-up companies are eager to make satellite access more affordable and
widespread in places that don't already have a transmission infrastructure
in place. This technology is particularly useful in rural communities and
developing nations, where it is much faster to get Internet access thought
satellites than waiting for telephone or cable lines to be laid. Expense and
technical problems will probably prevent satellite Internet access from
becoming common in the general market.
[SOURCE: New York Times (C1), AUTHOR: Matt Richtel]
http://www.nytimes.com/library/tech/98/11/biztech/articles/30bird.html

INTERNET ADVERTISING, JUST LIKE ITS MEDIUM, IS PUSHING BOUNDARIES
Issue: Electronic Commerce
More than 80% of the Internet's available ad slots went unsold in 1997. Not
so in 1998. Outlays for online ad spending this year are expected to reach
$2 billion. Advertisers see new ways cyberspace can fit their strategies.
Major advertisers, like General Motors, are just looking for alternatives to
other expensive advertising. Startup companies buy advertising to get
noticed quickly. The Internet is learning how to target specific customers.
More than in radio or television, the Web also blurs the lines between
content and advertising. Most advertisers pay at least as much to reach an
Internet audience as they would for TV or magazine ads, typically $10 to $40
per 1,000 viewers. Shane Spitzer, who buys advertising for an online loan
service, says, "You get an incredible amount of information on what sites
work well and what sites don't. And you get it fast enough that you can
react to it."
[SOURCE: Wall Street Journal (A1), AUTHOR: George Anders]
http://www.wsj.com/

WHERE TO STORE THE E-MAIL
Issue: E-mail
[Editorial] The National Archives faces a great challenge in its mandate to
keep government records, especially since it continues to struggle with the
best way to handle e-mail. The different systems used for electronic
documents within the government and the frequent updating of those systems
makes the archiving of documents more difficult. The courts have said the
Archives cannot ignore e-mail, even if paper documents are available." The
Archives' recent announcement that it had endorsed a standard for electronic
records management arrived at by the Defense Department is, therefore, a
sign of modest progress....How the government ends up storing its records for
posterity also will help shape the approach of libraries and academic
institutions. The stakes in this project are as enormous as its daunting
complexity."
[SOURCE: Washington Post (A24), AUTHOR: WP Editorial Staff]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/30/001l-113098-idx.html

ONE YEAR OLD AND OFF TO SCHOOL
Issue: E-rate
The Schools and Libraries Corporation, the nonprofit company entrusted with
carrying out the federal e-rate program, has survived a rocky first year,
but they are beginning to show progress. Last week they sent letters to
3,000 schools and libraries nationwide, committing $73 million for Internet
improvements. That mailing was the first installment in their planned
payouts to schools and libraries that want to build or improve upon Internet
connections with money from monthly long-distance bills. The SLC is working
its way through 30,000 applications, one-third of which arrived within three
days of an April 15 deadline. They intend to commit up to $1.9 billion
dollars in three more waves of notifications between now and the end of
January 1999. SLC's acting chief executive, Kate L. Moore, says, "We will
have enough money to fund 'priority one' requests." Those are requests for
help with telecommunications and Internet services rather than inside wiring.
[SOURCE: Washington Post (F5), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/30/021l-113098-idx.html

DEPT OF COMMERCE AND ICANN
Issue: Internet
Memorandum of Understanding Between the U.S. Department of Commerce and the
Internet Corporation for Assigned Names and Numbers
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/domainname/icann-memorandum.htm

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

Candidate Carte Blanche
CANDIDATE CARTE BLANCHE
Issue: Campaign Fiance
[Op-ed] The rules for the next Presidential election are being written right
now and the message is that candidates can violate campaign finance rules
without consequence. With Janet Reno's refusal to appoint an independent
counsel to investigate Vice President Gore's fund raising role in 1996 and
the same likely decision concerning the President, we may see a return to
not only pre-Watergate days, but the robber baron days of 1907 -- the last
Presidential election that allowed candidates to receive unlimited campaign
contributions from corporations. Many likely Presidential candidates have
already formed political action committees (PACs) and are aggressively
raising soft money to be used on television advertising. The candidates,
citing President Clinton's last campaign, will claim that these are issue
advertisements and therefore outside the campaign finance laws. With a
front-loaded primary calendar for 2000, we can expect a lot of advertising
by Presidential candidates in 1999. Wertheimer concludes: "Absent quick
Congressional action on campaign finance reform, we are about to see our
next President chosen in a process that is corrupt to its core and likely to
taint the next President from the day he takes office. That's some way to
start a new millennium."
[SOURCE: New York Times (A27), AUTHOR: Fred Wertheimer, President of
Democracy 21]
http://www.nytimes.com/yr/mo/day/oped/30wert.html

=====
RADIO
=====

IN MILITARY-RUN NIGER, STATION MANAGER SEES TALK RADIO AS DEMOCRATIC DUTY
Issue: Journalism
When people in the African country of Niger want to get on the radio they
don't call into one of Radio Anfani's four independent stations -- they
walk in. Run by Gremah Boucar, Radio Anfani does not rely on the telephone
-- which is a luxury in this country -- to give people a chance to talk
about the issues that matter most to them. "It seems to me that journalism
goes with democracy," says Boucar, who produces health, news, and political
programming for the military run country if 10 million people. He call
journalism his "moral obligation."
[SOURCE: New York Times (C9), AUTHOR: Felicity Barringer]
http://www.nytimes.com/yr/mo/day/news/financial/niger-radio-host.html

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Communications-related Headlines for 11/25/98

ED TECH
School Laptop Program Raises Concerns About
Equal Access (CyberTimes)

UNIVERSAL SERVICE
Joint Board Makes Universal Service Recommendations
to FCC (FCC)

E-COMMERCE
Building a Business Behind the Screen: America Online Sets Its Sights on
E-Commerce (NYT)
eWallet Aims to Be the Internet's Middle Man (WSJ)

TELEPHONE
FCC Says Sprint and Telmex Overcharged on Some Rates (NYT)

INTERNET
Who Am I Now? Pros and Cons of Multiple E-Mail Addresses (WSJ)
Library To Trim Internet Restrictions (NYT)

ANTITRUST
A Day of Hostile Questions in Microsoft Trial (WP)
Competition On The Internet (NYT)

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

SCHOOL LAPTOP PROGRAM RAISES CONCERNS ABOUT EQUAL ACCESS
Issue: EdTech
515 school districts and private schools are participating in a laptop
program sponsored by Toshiba and Microsoft. Parents are asked to pay $2,000
or make loan payments of $30 to $80/month. The computers come bundled with
word processing and other software to help kids take notes, write papers and
do research. About 60,000 students and teachers are participating in the
program. The program has gotten mixed reviews with some contending students
improve performance if they make good use of the computers and others saying
that some students do not use the machines often enough. A question of
equity has arisen as some families cannot afford the program and cannot get
breaks on the price. See these sites for more information: Microsoft laptops
program http://www.microsoft.com/education/k12/aal/vision.htm and Beaufort
County School District http://www.beaufort.k12.sc.us/learning/beaufort/.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels
mendels( at )nytimes.com]
http://www.nytimes.com/library/tech/98/11/cyber/education/25education.html

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

JOINT BOARD MAKES UNIVERSAL SERVICE RECOMMENDATIONS TO FCC
Issue: Universal Service
From the news release: The Federal-State Joint Board on Universal Service
made recommendations to the FCC on how to ensure that local telephone rates
in rural and high cost areas remain affordable and reasonably comparable to
rates in urban areas both today and as America's telecommunications
marketplace moves from monopoly to competition. The recommendation will help
inform the FCC's decision next spring related to the amount of universal
service support non-rural carriers (in general, large local telephone
companies) should receive for serving high cost areas. The Joint Board's
Recommended Decision, and the FCC's pending proceeding, are intended to
carry out Congress's directive that universal service be preserved and
advanced in a manner compatible with competition. Highlights include: 1) no
state should receive less support from the new high cost mechanism for
non-rural carriers than it receives from current explicit federal support
mechanisms, 2) the 25/75 jurisdictional division of responsibility for high
cost areas will be replaced by a new methodology, 3) the Joint Board
reaffirmed that support should be based on forward-looking costs, 4) the FCC
should work with carriers to prevent them from over-recovering their
contribution amounts, and 5) the Commission should take decisive action to
ensure that consumers are not misled as to the nature of charges on bills
associated with recovering universal service contributions.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8085.html

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

BUILDING A BUSINESS BEHIND THE SCREEN: AMERICA ONLINE SETS ITS SIGHTS ON
E-COMMERCE
Issue: Merger
The complex merger deal between America Online and Netscape includes AOL's
announcement that it will enter electronic commerce. Netscape already has
created software to support e-commerce. AOL says it has ambitions to offer
a much wider array of software, consulting and services for online
merchants. Analysts say that IBM is the present leader in e-commerce
support, although other companies offer various kinds of support. AOL
argues that its advantage in this "increasingly crowded bazaar" is its
ability to combine a broad subscriber base of about 15 million customers
with Netscape software, plus hardware from Sun Microsystems. Barry Schuler,
AOL's president for interactive services, said, "We will consult on how to
merchandise and sell online. We understand the consumer piece of the
puzzle." Some competitors worry that America Online's electronic commerce
services may simply be a device to sell its software and hardware.
[SOURCE: New York Times (B1), AUTHOR: Saul Hansell]
http://www.nytimes.com/library/tech/98/11/biztech/articles/25commerce.html
See also:
AOL CLOSES DEAL TO BUY NETSCAPE FOR $4.2 BILLION
[SOURCE: Washington Post (A1), AUTHOR: Elizabeth Corcoran]
http://www.washingtonpost.com/wp-srv/business/longterm/tech/aolnetscape/sto
ries/aol112598.htm
AOL SETS ACCORD TO PURCHASE NETSCAPE IN A STOCK TRANSACTION FOR $4.3 BILLION
[SOURCE: Wall Street Journal (A3), AUTHOR: Thomas E. Weber]
http://www.wsj.com/
AFTER A LIFE AT WARP SPEED, NETSCAPE LOGS OFF
[SOURCE: Wall Street Journal (B1), AUTHOR: Kara Swisher]
http://www.wsj.com/
FOR SUN, AN AOL DEAL COULD LEAD TO BIGGER HORIZONS
[SOURCE: Wall Street Journal (B1), AUTHOR: David Bank]
http://www.wsj.com/
KEYS TO THE DEAL: AOL'S BIG '98 AND NETSCAPE'S BROWSER
[SOURCE: Washington Post (A8), AUTHOR: Leslie Walker & Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/25/117l-112598-idx.html

EWALLET AIMS TO BE THE INTERNET'S MIDDLE MAN
Issue: Electronic Commerce
The eWallet company releases free software today that is intended to speed
online purchasing during the holiday season. The software creates a task
bar on local Windows 95 computers which allows a one-time entry of billing
and address information for frequent use thereafter. By clicking on the
task bar and entering a personal identification code each time, the data can
be sent to the Web site where the purchase is to be made and automatically
fill out the company's Web form. A variety of companies have been trying
solutions to consumers' desires to consolidate billing information.
Previous efforts have worked with merchants rather than consumers. eWallet
intends to make money by selling tiny ads that appear on the bottom of the
PC screen where its software is loaded.
[SOURCE: Wall Street Journal (B6), AUTHOR: Don Clark]
http://www.wsj.com/

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

FCC SAYS SPRINT AND TELMEX OVERCHARGED ON SOME RATES
Issue: Telephone
The FCC said Tuesday that the joint venture between Sprint and Telefonos of
Mexico (Telmex) committed anti-competitive practices in the long-distance
market and rejected part of their proposed rate structure. FCC Chairman
William Kennard said the high rates affected the "most vulnerable consumers"
of Telmex-Sprint Communications (TSC), immigrants making calls back to
Mexico. Sprint officials responded, "We are confident that neither any U.S.
carrier nor the public interest has been hurt by TSC's entry into the U.S.
market." The FCC action was taken after AT&T and MCI WorldCom complained
that the joint venture remained anti-competitive. The FCC rejected the
proposed settlement rate of Telmex for the next two years and described as
anticompetitive a 58 percent surcharge levied by Telmex for international
calls made to Mexico.
[SOURCE: New York Times (C2), AUTHOR: Stephen Labaton]
http://www.nytimes.com/yr/mo/day/news/financial/sprint-mexico-phones.html
See also:
SPRINT VENTURE'S FEES UNDER SCRUTINY
[SOURCE: Washington Post (C5), AUTHOR: Associated Press]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/25/106l-112598-idx.html
FCC RULES RATES HAVE TO BE LOWERED ON U.S.-MEXICO CALLS
[SOURCE: Wall Street Journal (B17), AUTHOR: WSJ Staff Reporter]
http://www.wsj.com/

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

WHO AM I NOW? PROS AND CONS OF MULTIPLE E-MAIL ADDRESSES
Issue: E-mail
More than one e-mail address for a single user is becoming more popular and
more useful. How many you end up with can depend on how much e-mail you
get, how visible you are online, how many outside interests you have and the
level of your privacy concerns. Keeping your personal e-mail away from the
eyes of the boss and the rest of the office is an obvious reason. Sometimes
you don't want people to know who you are because of your interests. Rachel
Vagts maintains a popular fan site for a television program and uses one to
deal with unsolicited messages from people chatting about the show. Some
e-mail sources, such as Hotmail and Yahoo, allow your mail to be picked up
anywhere you can log on to the Internet that allows you to stay in touch
even while travelling. Using one particular account for electronic commerce
can allow you to channel annoying reminders about new products or services.
Some downsides are that some services charge fees for multiple accounts,
that you must remember multiple passwords, and that you might miss an
important message unless you check all your accounts regularly.
[SOURCE: Wall Street Journal (B8), AUTHOR: Andrea Petersen]
http://www.wsj.com/

LIBRARY TO TRIM INTERNET RESTRICTIONS
Issue: Internet/ Content
As a result of the court ruling, a majority of Loudoun County's library
board members say they are willing to adapt a more flexible Internet
filtering policy. On Monday, U.S. district Judge Leonie M. Brinkema ruled
that the board's decision to install software on library computers that
blocked sexually explicit material on the Internet "offends the guarantee of
free speech in the First Amendment". Members of Virginia's Loundoun County
library board are now leaning towards a proposal to leave the filtering
software on computers intended for use by children, but allow adults to turn
off the program if they wish to have unlimited access to the Internet.
According to a story in the New York Times, libraries around the country are
reviewing the Loundoun court decision as they analyze their own Internet
policies.
[SOURCE: Washington Post (B1), AUTHOR: David Nakamura]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/25/081l-112598-idx.html
See also:
REVIEWS FOLLOW BAN ON LIBRARY INTERNET FILTER
[SOURCE: New York Times (A24), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/25library.html

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

A DAY OF HOSTILE QUESTIONS IN MICROSOFT TRIAL
Issue: Antitrust
Tuesday was the third day of questioning for government whiteness, economist
Frederick Warren-Boulton. Microsoft's lawyers were eager to work AOL's deal
with Netscape into their defense. They announced plans to file a motion for
dismissal -- after the government has finished presenting its evidence -
pointing to AOL's pending deal as proof that Microsoft has not quelched all
competition. While the judge might not see this as significant grounds for
dismissal, it might make him less likely to impose drastic remedies if
Microsoft is found guilty.
[SOURCE: New York Times (C5), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/25microsoft.html
See also:
MICROSOFT CITES DEAL, SAYS CASE SHOULD END
[SOURCE: Washington Post (C3), AUTHOR: Robert MacMillian]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/25/099l-112598-idx.html
MICROSOFT CITES AOL-NETSCAPE BID AT TRIAL
[SOURCE: Wall Street Journal (B7), AUTHOR: Keith Perine]
http://www.wsj.com/

COMPETITION ON THE INTERNET
Issue: Antitrust
[Editorial] While the AOL-SUN-Netscape deal may be proof of the software
industry's rapidly changing landscape, that does not mean that there is
never a need for government intervention. The authors encourage the
government to actively peruse its antitrust case against Microsoft, in which
they have "presented solid evidence that Microsoft has used its monopoly in
operating systems to muscle rivals and partners so as to head off
competition in other software realm". They conclude; "Only when companies
know they can get their products to the consumer will they have the
incentive to innovate and turn the Internet into the revolutionary medium it
promises to be."
[SOURCE: New York Times (A26), AUTHOR: New York Times Editorial Staff]
http://www.nytimes.com/yr/mo/day/editorial/25wed1.html

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Happy Thanksgiving!!

Communications-related Headlines for 11/24/98

INTERNET
Judge Rules Against Filters at Library (CyberTimes)
'Decency' Revisited (WP)
Holiday Shopping Season Puts E-Commerce to the Test (CyberTimes)
New Internet Board Responds to Government Requests (CyberTimes)

MINORITIES
New EEO Rules (FCC)
3 Women in TV Form Cable Channel for Women (WP)

TELEPHONE
MCI Files Plans With FCC to Clarify Its 'Casual' Rates (WSJ)

MERGERS
SOL-Sun Talks Complicate Deal With Netscape (WP)
AOL Could Win Clout in Battle Over Internet (WSJ)
Conquering the Internet (NYT)
Takeover Fever Hits Online Industry (WP)
For Other Internet Players, A Scramble for Shelter (WSJ)
Book Deal Gets U.S. Approval (WSJ)

ANTITRUST
AOL Bid Plays Key Role at Trial Of Microsoft (WP)
Talks Muddy U.S. Bid to Curb Microsoft Power (WSJ)
Microsoft Says Proposed Netscape Deal Supports Its Case (NYT)

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

JUDGE RULES AGAINST FILTERS AT LIBRARY
Issue: Libraries
Judge Leonie M. Brinkema, of the United States district court for the
Eastern District of Virginia in Alexandria, struck down the policy of the
Loudoun County, Va., library system to use filtering software on all
computer terminals: "Such a policy offends the guarantee of free speech in
the First Amendment and is, therefore, unconstitutional," Judge Brinkema
wrote. She also ruled that filters constitute a form of prior restraint on
distribution of speech. A survey by the American Library Association found
that 15% of all libraries have filters installed on at least some of their
computers. Lawrence S. Ottinger, senior staff lawyer for the People for the
American Way Foundation http://www.pfaw.org/, which helped bring the suit
on behalf of the Loudoun patrons, hailed the decision: "I think it's a
landmark victory for public libraries and the right of the public to read
what they want in public libraries."
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels
mendels( at )nytimes.com]
http://www.nytimes.com/library/tech/98/11/cyber/articles/24library.html
JUDGE BARS LIBRARY SYSTEM'S INTERNET FILTER
[SOURCE: Washington Post (A1), AUTHOR: Brooke A. Masters & David Nakamura]
http://www.washingtonpost.com/wp-srv/washtech/daily/nov98/library24.htm

'DECENCY' REVISITED
Issue: Censorship
[Editorial] "The job of shielding kids from Net pornography in a
free-speech system can be accomplished constitutionally only by parents."
Last week a Philadelphia district judge put the Child Online Protection Act
(COPA) under a restraining order while a legal challenge to it goes forward.
After the Communications Decency Act was struck down by the Supreme Court
for being overbroad, Congress passed the COPA. The COPA still reflects "a
lack of understanding of how the Internet actually works. The first problem
is that 'harmful to minors' is a community standard.The second is that
many, perhaps most, publications that maintain Web sites (including this
newspaper) operate without requiring credit cards for access." Use of
credit cards as proof that the visitor was over 18 would not prevent them
from access to grown-up material like the Starr report.
[SOURCE: Washington Post (A18), AUTHOR: WP Editorial Staff]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/24/000l-112498-idx.html

HOLIDAY SHOPPING SEASON PUTS E-COMMERCE TO THE TEST
Issue: Electronic Commerce
The two heavy-hype champions of the world -- Christmas shopping and the
Internet -- will be joining forces this month -- probably in your prime time
living room. The message from Internet retailers is that it is easier, more
economical and just as safe to shop on the Internet as at the local mall.
Last year at this time, about $1.1 billion was spent online -- that figure
is expected to climb to $2.8 billion this holiday season. OK, so that's
nothing compared to the $173 billion that Deloitte & Touche predicts
Americans will spend overall this holiday season. That's mainly because
about two-thirds of American are still not online and many that are still
are a bit fearful of sending their credit card numbers over the Internet.
"The hardest part is getting people to make that first purchase," said Wendy
Brown, vice president for electronic commerce at America Online. "So
everything we're doing right now is geared toward making that first purchase
easy." And how are online retailers competing? Service. Service. Service.
Check out these sites: 911Gifts.com http://www.911gift.com/, Clinique
http://www.clinique.com/, and eGift.com http://www.egift.com/.
[SOURCE: New York Times (CyberTimes), AUTHOR: Bob Tedeschi
tedeschi( at )nytimes.com]
http://www.nytimes.com/library/tech/98/11/cyber/commerce/24commerce.html

NEW INTERNET BOARD RESPONDS TO GOVERNMENT REQUESTS
Issue: Internet
The Internet Corporation for Assigned Names and Numbers (ICANN) has
submitted a new proposal to the US Government that addresses the public's
concerns about the openness of the group. ICANN new bylaws include
requirements that public meetings be held before any policy decisions are
made, that all of the board's votes be roll-call votes, that extensive
minutes be published within 21 days of each meeting and that a committee be
formed to establish "a mechanism for the reconsideration of decisions by
independent third parties in cases where it is thought that ICANN or its
staff has not followed its own bylaws or rules of procedure." "Basically
it's everything anybody wanted; basically its anything conceivable except
for open meetings," said Ester Dyson, Chairman of the ICANN board. "There's
been a change in tone. I think that really is more important than anything.
The tone is that we understand that this is a public organization. We
understand that the people affected have a right to take an interest in what
we are doing."
[SOURCE: New York Times (CyberTimes), AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/98/11/cyber/articles/24domain.html

==========
MINORITIES
==========

New EEO Rules
NEW EEO RULES
Issue: Jobs/Minorities
From the news release: The FCC today proposed new Equal Employment
Opportunity (EEO) rules that would require broadcast licensees to inform
women and members of minority groups of job vacancies....The FCC's proposed
EEO rule revision would require outreach efforts designed to ensure that
minority and female applicants are informed of, and have an opportunity to
apply for, openings at broadcast stations. The proposal would not contain
requirements for employers to assess how the composition of their employment
profiles compares with the composition of the local labor force nor would
the Commission use such a comparison (sometimes referred to as "processing
guidelines") when assessing an entity's EEO program. The Commission also
asked for comment on its proposal to reinstate the statistical employment
data collection contained in the Annual Employment Report, but made clear
that these data would only be used to monitor industry trends.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1998/nrmm8038.html
http://www.fcc.gov/Bureaus/Mass_Media/Notices/1998/fcc98305.txt

3 WOMEN IN TV FORM CABLE CHANNEL FOR WOMEN
Issue: Gender/Cable
Some important names in television have joined together to create a new
cable channel aimed at women. Oprah Winfrey, Carsey-Werner-Mandabach and
Geraldine Laybourne, the former president of Nickelodeon, are expected to
announce plans today for the Oxygen Channel, which has a start date set for
Jan 1, 2000. The partners say that most of programming will be original.
They do, however, note that this channel might be the "perfect place" to
release the huge library of Ms. Winfey's daily talk show.
[SOURCE: New York Times (C1), AUTHOR: ]
http://www.nytimes.com/yr/mo/day/news/financial/tv-womens-network.html

=========
TELEPHONE
=========

MCI FILES PLANS WITH FCC TO CLARIFY ITS 'CASUAL' RATES
Issue: Telephone
MCI WorldCom amended its tariffs with the FCC on "casual calling" rates for
some subscribers making long distance calls. The FCC had expressed concern
that some MCI subscribers were being charged the higher, non-subscriber
rates. MCI contends that most people being charged the higher rate were
people who were more than 90 days behind in payments. Hereafter their long
distance service will be blocked. An AT&T spokesman said that they also
have "casual calling" rates but it is impossible to apply them to AT&T
subscribers.
[SOURCE: Wall Street Journal (B6), AUTHOR: Rebecca Blumenstein]
http://www.wsj.com/

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

SOL-SUN TALKS COMPLICATE DEAL WITH NETSCAPE (WP)
AOL COULD WIN CLOUT IN BATTLE OVER INTERNET (WSJ)
CONQUERING THE INTERNET (NYT)
Issue: Mergers
America Online, the world's largest Internet service, is negotiating a deal
to dominate the World Wide Web. AOL has proposed to buy Netscape Corp.'s
Internet browser and form an alliance with Sun Microsystems. If completed,
these deals would not just make AOL the most seen company on the Internet,
Netscape's browser would also help ready AOL for the media convergence
expected with the transition to digital broadcasting. In the meantime, AOL
could take advantage of the increased advertiser dollars they will attract
if they acquire the world's number one portal.
[SOURCE: Washington Post (D1), AUTHOR: Elizabeth Corcoran & Leslie Walker]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/24/053l-112498-idx.html
[SOURCE: Wall Street Journal (B1), AUTHOR: Thomas E. Weber]
http://www.wsj.com/
[SOURCE: New York Times (A1), AUTHOR: Steve Lohr and John Marko
http://www.nytimes.com/library/tech/98/11/biztech/articles/24netscape.html

TAKEOVER FEVER HITS ONLINE INDUSTRY
Issue: Merger/Internet
Consumers are buying the stock of many Internet companies now because they are
hoping some of them will become the target of the next takeover
bid. This year $195 billion worth of Internet-related mergers have been
announced in the US. This explosion in deals indicates the Internet has
become an industry unto itself and is now in its second life cycle phase,
having moved from creation to consolidation. Young companies are racing to
grab market share. Internet acquisitions tend to be aimed at getting either
customers or content. Thousands of companies are fighting for the same
online revenue pool, and only a few of them will be able to survive.
[SOURCE: Washington Post (D1), AUTHOR: Leslie Walker]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/24/067l-112498-idx.html

FOR OTHER INTERNET PLAYERS, A SCRAMBLE FOR SHELTER
Issue: Merger/Internet
George Bell of Excite says the proposed AOL and Netscape deal "accelerates
the notion that there is a Microsoft Web and a non-Microsoft Web dominated
by AOL." Excite (partly owned by AOL) and other Internet companies are
looking for the right partners to be a part of one of the powerhouses.
Yahoo, the most popular single site on the Web, seems to have a credible
claim to remaining in the Top Three. Jeff Mallett of Yahoo says a few major
brands can be good for a market, pointing to the big three television
networks. Lycos and other portals are building audiences by adding an array
of services, such as free e-mail and chat, and by buying up smaller online
communities. "Fewer, bigger players can really hurt smaller ones," said
Paul Noglows, a financial analyst. "Now it could really get ugly."
[SOURCE: Wall Street Journal (B1), AUTHOR: Kara Swisher]
http://www.wsj.com/

BOOK DEAL GETS U.S. APPROVAL
Issue: Merger
London-based Pearson PLC has been cleared to become the world's largest
educational publisher. Federal antitrust officials agreed to allow
Pearson's $4.6 billion purchase of Simon & Schuster's educational and
reference book division. Department of Justice officials only required the
selloff of 55 titles. Pearson also announced that a second deal with Hicks,
Muse, which had been previously announced, would not go forward since they
could not agree on final terms.
[SOURCE: Washington Post (D3), AUTHOR: WP Staff Writer]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/24/066l-112498-idx.html

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

TALKS MUDDY U.S. BID TO CURB MICROSOFT POWER (WSJ)
MICROSOFT SAYS PROPOSED NETSCAPE DEAL SUPPORTS ITS CASE (NYT)
AOL BID PLAYS KEY ROLE AT TRIAL OF MICROSOFT (WP)
Issue: Antitrust
The proposed merger of AOL and Netscape was a key point of contention
yesterday at the government's antitrust trial against Microsoft. William
Neukom, Microsoft attorney, said the proposed deal "proves indisputably that
no company can control the supply of technology. We are part of an industry
that is remarkably dynamic and ever-changing." David Boies, the
government's lead attorney, said, "The merger is not going to remove any of
the obstacles Microsoft has placed in the path of competition." On the
witness stand Frederick Warren-Boulton, a former government economist,
argued that Microsoft's exclusive contracts with computer makers and
Internet service providers may have forced the firms to consider merging.
An observing lawyer suggested that the proposed deal "will remind Judge
Jackson that any relief ordered today or tomorrow will be out of date the
day after." Observers also suggest the timing of the AOL and Netscape deal
is good because they are unlikely to face tough antitrust scrutiny by the
Justice Department themselves.
[SOURCE: Wall Street Journal (B1), AUTHOR: Bryan Gruley & David Bank]
http://www.wsj.com/
[SOURCE: New York Times (C4), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/24microsoft.html
[SOURCE: Washington Post (D1), AUTHOR: David Segal & Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/24/063l-112498-idx.html

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
We'll be back tomorrow, but there will be no Headlines on Thursday and Friday.

Communications-related Headlines for 11/23/98

JOURNALISM
News in Future Tense (NYT)
TV News Wary of Lawsuits, Study Says (NYT)

TELEVISION
FCC Sets The Price For Digital (B&C)
Easing The Digital Path (B&C)
Diller's Latest Tele-Vision (NYT)
A Year of Living Dangerously (NYT)

OWNERSHIP
LMA Threat Scares Broadcasters (B&C)
Don't Change Horses (B&C)

INTERNET
Online Campaign Contributions Still a Promising Experiment (CyberTimes)
Chicago Seen As Information-Highway Hub (ChiTrib)
Internet Retailers Take On Amazon.com With Shopper Connection
Online Mall (WSJ)

CABLE
Smaller Cable Companies Homing In on the Internet (NYT)
Wired In to One-Stop Shopping (WP)

INTERNATIONAL
American-Made Satellite to Offer Uncensored TV in Russia (NYT)
A Call From the Heavens Above (WP)

MERGERS
Netscape Bid Seen By America Online (NYT)

ANTITRUST
Judge Rejects Microsoft Requests to Halt Piecemeal Presentation of
Gates Videotape (WSJ)
Live Testimony by Gates Would Pose Risks for Both Sides at Antitrust
Trial (NYT)

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

NEWS IN FUTURE TENSE
Issue: Journalism
(Opinion) Feiler comments on how journalism is increasing about what will
happen tomorrow more than what happened today. He says reporters are
switching places with weather forecasters -- since predicting is so hard,
reporters are often wrong now while aided by science and satellites, Wally
the Weatherman is more often right on target. Lessons of the past -- "Dewey
Defeats Truman" -- don't seem to register anymore -- "Republicans to Gain 5
to 15 Seats." The explosion of news outlets may be one cause for the trend
-- you can beat the competition if you report on something that has not
happened yet -- but there are other reasons: polls showing Americans want
more "service" from their information outlets and pretending that
predictions offer some sort of service; and reporters hating to be scooped
by their colleagues. Feiler concludes: "If reporters feel that the Who,
What, When and Where of most stories have already been covered by the time
they file, then the way to attract audience -- and respect -- is to
speculate less on the Whatnots of the future and focus more on the Hows and
Whys of the moment."
[SOURCE: New York Times (A23), AUTHOR: Bruce Feiler, Author of "Dreaming Out
Loud"]
http://www.nytimes.com/yr/mo/day/oped/23feil.html

TV NEWS WARY OF LAWSUITS, STUDY SAYS
Issue: Journalism
The Center for the Advancement of Modern Media at the University of Miami
School of Communications has recently released the results of a survey that
finds that one out of every five television news directors around the
country have declined to air some news reports because of fear of possible
lawsuits. Another 28% of the news directors omitted key information from
reports out of similar concerns. 38% of the news directors reported being
sued for libel in the last three years. However, at the same time, stations
have felt increasing pressure to pursue riskier stories in order to grab
attention: 63% of television news programs use hidden camera and microphone
tactics as a means for collecting information.
[SOURCE: New York Times (C9), AUTHOR: Pamela Mercer]
http://www.nytimes.com/yr/mo/day/news/financial/tv-news-lawsuits.html

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

FCC SETS THE PRICE FOR DIGITAL
Issue: DTV
Last week, the Federal Communications Commission introduced new public
interest obligations on broadcast stations. To the disappointment of
broadcasters, the FCC announced a 5% fee on digital television stations'
revenue from subscription services. The broadcast industry had argued for a
2% charge on any service for which they receive profits other than from
advertising. The public advocacy group Media Access Project, on the other
hand, had called for the charge to be as high as 10%. The commission also
will require digital broadcast satellite (DBS) providers to set aside 4% of
their channel capacity for public interest programming. DBS providers,
however, will be free to determine which public interest programmers to
offer. Additionally, the FCC proposed a return of the minority recruiting
requirements that were struck down by a federal court earlier this year.
[SOURCE: Broadcasting and Cable (p5), AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/

EASING THE DIGITAL PATH
Issue: DTV
Regulators, broadcasters and equipment manufactures gathered for the Dawn of
Digital summit last Monday to discuss the future of digital TV. FCC Chairman
William Kennard outlined the agency's role in fostering a rapid deployment
of DTV to the American public. "Government can facilitate resolution of
obstacles that arise in the buildout," said Chairman Kennard, but he made
clear that the FCC would not have the role of imposing technical standards.
Broadcasters expressed concerns about reaching a voluntary solution with the
cable industry over "must carry" and urged the FCC to step in and require
cable carriage of all digital signals.
[SOURCE: Broadcasting and Cable (p48), AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/

DILLER'S LATEST TELE-VISION
Issue: Television
Barry Diller built the FOX network on "Married...With Children" and "A
Current Affair" and then ran the QVC shopping network. Now he is turning his
attention to local television starting with WAMI in Miami. Programming
includes "10" -- a show that visits the beaches of Miami and lets the
audience vote for their favorite bods (yes, Virginia, that's the promise of
interactivity) -- and a 11pm newscast that reduces talking heads to simple
"Lips," a woman's roughed mouth reading headlines in a sultry voice. Two
shows, "The Times" and "City Desk: The Herald," offer more conventional,
investigative news. The focus in television programming of late has been
cable where national advertising and subscription dollars are available. But
Diller's theory, Fabrikant reports, is that local broadcast programming has
been ignored and that people want a sense of what is going on in their local
communities. Diller's USA Networks owns 12 other local stations around the
country so this new approach to programming may be coming to a small screen
near you.
[SOURCE: New York Times (A1), AUTHOR: Geraldine Fabrikant]
http://www.nytimes.com/yr/mo/day/news/financial/diller-localtv-media.html

A YEAR OF LIVING DANGEROUSLY
Issue: Television
The average audience for the UPN network has shrunk 40%. The network will
likely lose $200 million this year after losing $180 million last year. But
the venture's owners -- Viacom and Chris-Craft -- insist they are committed
to the network for the long haul. They say the network will exist until the
local stations are shut down. But for many of these stations, having UPN as
a programming partner is worse than going it on their own. The bad ratings
for UPN shows means lower rating for their local news and the syndicated
shows that follow. And studios seem less inclined to work with UPN now
because it is not as likely that shows will become hits and be syndicated
down the line -- when the studio makes the big dollars.
[SOURCE: New York Times (C9), AUTHOR: Lawrie Mifflin]
http://www.nytimes.com/yr/mo/day/news/financial/upn-tv-losses.html

=========
OWNERSHIP
=========

LMA THREAT SCARES BROADCASTERS
Issue: Ownership
As part of new plans to revamp media ownership rules, the FCC has proposed
an elimination of local marketing agreements (LAMs). While the broadcast
industry welcomes other measureS that will relax ownership restrictions, they
are concerned about the impact on stations if LMAs are forced to disband.
Broadcasters have long used LMAs, which allow one station to control another
without actually owning it, as a way to get around the ban on owning two
stations in the same market. Representatives from the broadcast industry
have argued that the ownership restrictions hinder competition, but FCC
Chairman William Kennard is concerned that the 1996 Telecommunication Act,
which lifted limits on the number of stations one company can own, has
already resulted in excess consolidation.
[SOURCE: Broadcasting and Cable (p6), AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/

DON'T CHANGE HORSES
Issue: Ownership
(EDITORIAL) The FCC's ban of local marketing agreements would cause "major and
unnecessary disruption to the affected broadcasters and to the public they
serve," according to the authors. They believe that elimination of LMAs is
not the only way to avoid excessive consolidation in broadcasting. Instead,
the authors argue that the FCC should relax ownership rules to allow the
ownership of two stations in the same market.
[SOURCE: Broadcasting and Cable (p74), AUTHOR: B&C Editorial Staff]
http://www.broadcastingcable.com/

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

ONLINE CAMPAIGN CONTRIBUTIONS STILL A PROMISING EXPERIMENT
Issue: Campaigns
Using the Web to collect campaign contributions pulled in less than 1% of
total contributions in the last election. Sen Barbara Boxer's campaign, for
example, collected $25,000 online of $20 million total. But the 25k more
than paid for the campaign's website and the banner ads placed around the
Internet. And contributions that come in through the Web tend to be more
than through direct mail and phone solicitations. It is also cheaper to
collect money through the web -- as low as $0.10-$0.15 for every dollar
collected vs $0.40 to $0.50 to even $0.90 per dollar raised via more
traditional means. "The bulk of these [online] donors probably would not
have donated without this," said Rob Arena, Campaign Solutions'
http://www.campaignsolutions.com/ Vice President for Internet Services.
"You're looking at bringing in new people and younger people." But with the
potential windfall also comes potential problems with campaign finance rules
and processing credit card transactions. These problems will have to solved
before these systems can take off.
[SOURCE: New York Times (CyberTimes), AUTHOR: Rebecca Fairley Raney
rfr( at )nytimes.com]
http://www.nytimes.com/library/tech/98/11/cyber/articles/22campaign.html

CHICAGO SEEN AS INFORMATION-HIGHWAY HUB
Issue: Internet
"Just as Chicago has been a hub of transportation, it will be a hub of the
information superhighway," said Joel Mambretti, director of the
International Center for Advanced Internet Research, based at Northwestern
University. Mambretti and other networking experts from the Chicago region
assembled last week at the Digital Network Infrastructure Forum to discuss a
recently released report by the Metropolitan Planning Council
www.metroplanning.org. The report and the discussion last week see the
Chicago region as a possible major hub of the information superhighway.
Chicago is connected to major research networks like the Metropolitan
Research and Education Network (MREN) and Internt2. And suburban Evanston is
planning a community-wide high-speed network to increase bandwidth into the
home.
[SOURCE: Chicago Tribune (Sec4, p.8), AUTHOR: Mark LeBien]
http://chicagotribune.com/textversion/article/0,1492,SAV-9811230040,00.html

INTERNET RETAILERS TAKE ON AMAZON.COM WITH SHOPPER CONNECTION ONLINE MALL
Issue: Electronic commerce
They aren't calling it an "online mall," but nine major Internet retailers
today are launching Shopper Connection, a network of Web sites offering a
variety of services. A major goal is to slow the product expansion of
Amazon.com which benefits from having a large customer base who like to shop
online. In recent months Amazon.com has added compact disks and videos to
its traditional lineup of books and has begun to experiment in toy sales.
The Shopper Connection alliance includes online companies that provide
music, movies, computer software, travel, brokerage, toys and other
services. The companies have agreed to cross-promote the service at their
Web sites and to create a frequent shopper program to reward buyers with
points redeemable for merchandize.
[SOURCE: Wall Street Journal (B9), AUTHOR: Thomas E. Weber]
http://www.wsj.com/

=====
CABLE
=====

SMALLER CABLE COMPANIES HOMING IN ON THE INTERNET
Issue: Cable
Over the next few weeks smaller, rural cable companies may be able to begin
offering Internet access. Cable companies and local telephone service
providers are vying to be the first to offer widespread, high-speed Internet
access. Softnet Systems will offer cable operators high-speed Internet
service through satellites and technology developed by Intelligent
Communications. And At Home Corp is expected to announce a ready-made
solution for small and medium size cable operators at a trade show next week.
[SOURCE: New York Times (C2), AUTHOR: Seth Schiesel]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/23net.html

WIRED IN TO ONE-STOP SHOPPING
Issue: Broadband
Bell Atlantic is beginning to get competition from Jones Communications for
local phone service in Alexandria, Virginia and other suburbs of Washington,
D.C. Jones is the largest cable provider in the Washington area serving
430,000 households. They now claim 8,000 cable customers also have either
phone or Internet service following their $30 million upgrade of their
system last year. The phone and Internet service is not being offered
beyond apartment buildings or other multi-family dwellings presently because
Jones says it is not cost effective. One customer, Raquel Powell, says
Jones' phone service has performed flawlessly in the 10 months she has had
it. Her bundled price for local phone service and expanded basic cable is
$42.80 and includes call waiting, three-way calling and interior wire
maintenance. She estimates phone savings at $10 to $15 per month.
[SOURCE: Washington Post (F5), AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/23/007l-112398-idx.html

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

AMERICAN-MADE SATELLITE TO OFFER UNCENSORED TV IN RUSSIA
Issue: International
"It is an unusual moment. I would dare to call it quite a revolution," said
Vladimir Goussinsky, chairman of Media Most. The company is responsible for
the first Russian satellite to be manufactured and launched in the United
States. With 200,000 potential subscribers in western Russia and Israel, the
satellite, BONUM-1, is also the first privately owned Russian satellite not
subject to military or Government control. In early 1999, the satellite will
begin broadcasting 50 channels of news, movies, sports (lots and lots of
hockey, no doubt), and children's shows.
[SOURCE: New York Times (A15)]
http://www.nytimes.com/yr/mo/day/news/national/rocket-russia-tv.html

A CALL FROM THE HEAVENS ABOVE
Issue: Satellite
A Washington Post reporter tested and reviewed performance of the new
Iridium satellite phone. It left him "optimistic about its potential."
Mike Mills tried a dozen calls and reported one was dropped and several were
garbled. Iridium officials say 11 to 12 percent of calls are dropped today;
their goal is to have a 3 percent drop rate by the end of the year. Overall
quality was similar to a "mid-quality cellular phone." Iridium has 66
satellites presently in orbit 500 miles above the planet and is the first
low-Earth-orbit telephone system. The phones presently cost $3,395 with a
$69 monthly charge and $2 to $7 per minute charge for use. A pager that
uses the Iridium system is available for $695 for the unit and $39 to $199
per month. Four U.S. dealers sell the Iridium phones and pagers. (See
www.iridium.com.)
[SOURCE: Washington Post (F23), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/23/018l-112398-idx.html

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

NETSCAPE BID SEEN BY AMERICA ONLINE
Issue: Merger
Executives involved in talks between Netscape and America Online say the two
companies are lose to merging. In a complex, three-way deal, America Online
will by Netscape's popular website and browser software and enter a joint
marketing and development partnership with Sun Microsystems to strengthen
Netscape's server software. The deal is said to be worth about $4 billion.
AOL is the leading online service provider and now has over 14 million
subscribers.
[SOURCE: New York Times (A1), AUTHOR: Steve Lohr and John Markoff]
http://www.nytimes.com/library/tech/98/11/biztech/articles/23netscape.html
AOL to Acquire Internet Software Pioneer Netscape in $4 Billion Deal (WP)
[SOURCE: Washington Post (A1), AUTHOR: Rajiv Chandrasekaran & Elizabeth
Corcoran]
http://washingtonpost.com/wp-srv/washtech/daily/nov98/aol1123.htm
An Ascendant AOL Moves Close To A Deal To Aquire Netscape
[SOURCE: Wall Street Journal (A1), AUTHOR: Kara Swisher and Don Clark]
http://www.wsj.com/

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

JUDGE REJECTS MICROSOFT REQUESTS TO HALT PIECEMEAL PRESENTATION OF GATES
VIDEOTAPE (WSJ)
LIVE TESTIMONY BY GATES WOULD POSE RISKS FOR BOTH SIDES AT ANTITRUST TRIAL (NYT)
Issue: Antitrust
In a private conference with government and Microsoft lawyers late last
week, Judge Thomas Penfield Jackson rejected Microsoft's contention that the
videotaped testimony of Bill Gates was being misused by government lawyers.
The decision will permit the government to continue its use of the testimony
in short segments. Judge Jackson also called Gates' responsiveness into
question. Gates could be called as a live witness by either side but is not
on the current witness list. According to the New York Times, Gates could
bolster the Microsoft defense if called to appear live but he might come off
as a volatile, arrogant and unresponsive witness with something to hide.
The government's antitrust trial against Microsoft resumes this week with
testimony by Frederick Warren-Boulton, an economist for the government. In
a separate action, the Wall Street Journal reports, Japan's Fair Trade
Commission said it could not prove charges that Microsoft had abused its
power by promoting its Internet Explorer browser at rivals' expense.
Microsoft hailed the announcement as a victory and said that it proved the
U.S. case was "fundamentally misguided."
[SOURCE: Wall Street Journal (B8), AUTHOR: Bryan Gruley & David P. Hamilton]
http://www.wsj.com/
[SOURCE: New York Times (C5), AUTHOR: Steve Lohr]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/23soft.html

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
Happy Monday!

Communications-related Headlines for 11/20/98

DIGITAL TV/BROADCAST REGULATION
FCC Sets Fees for Digital TV (WP)
FCC Eases Affirmative-Action Rules After Court
Struck Down Old Guides (WSJ)

PRIVACY
Data Privacy Guidelines Get a Critical Reception (WP)

ANTITRUST
A Game of Judicial Roulette (WP)
Microsoft Says There's a Boxful of Competition (WP)
Microsoft Accused of Keeping Prices Artificially High (NYT)

===============================
DIGITAL TV/BROADCAST REGULATION
===============================

FCC SETS FEES FOR DIGITAL TV
Issue: Digital TV
Digital television broadcasters will have to pay a 5% fee any non-broadcast
services they provide. Television stations are in the beginning stages of
the transition from current analog technology to digital. The new technology
will allow broadcasters to provide subscription and pay-per-view programming
as well as paging, wireless telephone service, and data services. "This
could, potentially, have a multibillion-dollar impact," said the Media
Access Project's Andrew Schwartzman. Broadcasters had proposed a 2% fee;
public interest advocates had suggested 10%. The FCC's definition of
services subject to fees exempts home shopping and direct-response
informercials. Mr. Schwartzman said this will give a "green light" for
television stations to air more home shopping programs: "What a waste," he
said. In other broadcast-related decisions, the FCC revised its guidelines
on equal employment opportunities and ruled that direct-broadcast satellite
operators must set aside 4% of their channel capacity for noncommercial
educational programming. The NYT also reports the reaction of Gigi Sohn:
"The commission buckled to the broadcasters and will not be giving the
public a darned thing," said Gigi B. Sohn, executive director of the Media
Access Project, a law firm that represents consumer interests. "By finding
that fees do not apply to home shopping, infomercials or direct marketing,
they will be applying this fee to very few services. The result is that the
public will not be compensated for giving broadcasters billions of dollars
of free public spectrum and broadcasters will be unjustly enriched."
[SOURCE: Washington Post (D3), AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/20/057l-112098-idx.html
Some Digital Services Face 5% US Tax
[SOURCE: New York Times (C1), AUTHOR: Stephen Labaton]
http://www.nytimes.com/library/tech/98/11/biztech/articles/20digi.html
FCC Sets Fee Level for Subscription Services Used by Broadcasters on New
Digital TV Channels
Issue: Digital TV
[SOURCE: FCC]
Press Release
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1998/nrmm8037.html
Text of Order http://www.fcc.gov/Bureaus/Mass_Media/Orders/1998/fcc98303.txt
Commission Implements Public Interest Obligations for Direct Broadcast
Satellite Service
Issue: Satellite
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/International/News_Releases/1998/nrin8038.html

FCC EASES AFFIRMATIVE-ACTION RULES AFTER COURT STRUCK DOWN OLD GUIDES
Issue: Jobs/Minorities
The FCC is revising equal employment opportunity rules in the wake of a
federal court decision that invalidated the agency's old rules. Releasing
proposed rules for comment yesterday, the FCC suggesting a new system that
require broadcasters to include women and minorities as candidates for jobs.
"We will not evaluate the results of their efforts. We will not look at who
they hire. We are not going to have a scheme that indirectly pressures
anyone to use racial preferences in hiring," said a FCC official. Although
minorities make up 25% of the US population, they currently make up just
19.9% of broadcast industry employees.
[SOURCE: Wall Street Journal (B6), AUTHOR: Staff Reporter]
http://wsj.com/

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

DATA PRIVACY GUIDELINES GET A CRITICAL RECEPTION
Issue: Privacy
Last week the Commerce Department made recommendations on how US companies
can comply with Europe's new privacy regulations. But the guidelines are too
vague, legal and privacy experts say, and may put American companies at
risk. "The guidelines may give American companies a false sense of
security," said Fordham Law School privacy expert Joel Reidenbrg. Ohio State
University law professor Peter Swire said, "It's two pages of principles to
cover a modern economy's data flow." Commerce Undersecretary David Aaron
defended the proposal, known as the "International Safe Harbor Privacy
Principles," saying it was developed after months of discussions with
European officials.
[SOURCE: Washington Post (D2), AUTHOR: Robert O'Harrow, Jr]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/20/074l-112098-idx.html

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

A GAME OF JUDICIAL ROULETTE
Issue: Antitrust
Even before the Microsoft antitrust case ends, observers are eying the next
round of the process. No matter the decision, the case will be appealed and
a three-judge panel will hear it. The panels are picked at random and then
randomly assigned cases. Party affiliation, attorneys say, is a reliable
predictor of how the judges will rule: judges appointed by Republicans are
likely to favor a large competitor; those appointed by Democrats might push
for greater intervention.
[SOURCE: Washington Post (D1), AUTHOR: David Segal]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/20/053l-112098-idx.html

MICROSOFT SAYS THERE'S A BOXFUL OF COMPETITION
Issue: Antitrust
Microsoft lawyers yesterday pointed to the Linux operating system as
providing plenty of competition for the software giant. Microsoft now
controls 90% of the operating system market, but could quickly be challenged
by Linux, the company argues.
[SOURCE: Washington Post (D1), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/20/072l-112098-idx.html

MICROSOFT ACCUSED OF KEEPING PRICES ARTIFICIALLY HIGH
Issue: Antitrust
Economist Frederick Warren-Boulton testified at the Microsoft trial that the
software giant has used it market power to keep prices significantly higher
than would be expected if there was competition. The price the company
charges computer makers for the Windows operating system has "increased
significantly over the last two year," Mr. Warren-Boulton said.
[SOURCE: New York Times (C2), AUTHOR: Joel Brinkley and Steve Lohr]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/20soft.html

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
...and we are outta here. Have a great weekend. My wife reminded me to say
something out blue, but I forget now. Enjoy the Big Game college football
contest of your choice this weekend.

Communications-related Headlines for 11/19/98

BROADCAST
FCC Proposing New Rules to Encourage Minority Hiring (NYT)
Digital Television Consumer Information (NTIA)
FCC Expected to Make Broadcasters Pay Fee Based on Revenues
From Digital TV (WSJ)

ARTS
Putting a Price Tag on Digital Art (CyberTimes)

RESEARCH
Institute for Telecommunication Sciences (NTIA)

INFO TECH
Paging Firms Back Standard for Delivery Of Internet Content (WSJ)
MCI WorldCom to Launch Web Service Via Traditional
Copper Phone Lines (WSJ)
MERGER
Microsoft Plans to Sell 10% Stake in RealNetworks, Ending Alliance (WSJ)
Microsoft Ending RealNetworks Tie (WP)

ANTITRUST
Microsoft Cites Java Use in Its Defense (WP)
Microsoft Windows Monopoly Is Criticized (WSJ)

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

FCC PROPOSING NEW RULES TO ENCOURAGE MINORITY HIRING
Issue: Jobs/Minorities
The Federal Communications Commission is considering new rules to encourage
the recruitment of women and minorities for work in the broadcast industry.
In April, Judge Laurence Siberman of the United States Court of Appeals for
the District of Columbia invalidated the FCC's affirmative action rules. The
rules, enacted in 1987, encouraged broadcasters to hire a workforce where
the proportion of minorities and women was half their percentage in the
local broadcast area. These proportions were examined when stations applied
to have their licenses renewed. Although no station has ever been denied a
renewal on this basis, Judge Siberman ruled that even the possibility would
induce station owners to give preference when it came time to hiring. Women
now make up 41% of the broadcast workforce, up from 23.3% in 1971. Minority
members comprise 20.2% of the broadcast workforce, up from 9.1% in 1971.
[SOURCE: New York Times (A19), AUTHOR: Steven Holmes]
http://www.nytimes.com/yr/mo/day/news/washpol/fcc-affirm.html

DIGITAL TELEVISION CONSUMER INFORMATION
Issue: DTV
"The arrival of digital television ("DTV") this fall promises to be one of
the most significant developments in television technology since the advent
of color television in the 1950's. DTV has the capability to provide clearer
and sharper, cinema-like pictures as well as multi-channel, CD-quality
sound. It can provide new uses such as multiple video programs or other
services on a single television channel, including data services. The use of
DTV technology will also allow television to enter the digital world of the
personal computer and the Internet. As with any major technology change, it
will be important for consumers to understand the capabilities of new
equipment in order to make purchase decisions. The new digital television
sets will have many new features and technical characteristics that will
vary somewhat between different models and manufacturers. In addition,
special features may be needed when using DTV sets to receive programs from
cable, direct satellite, or other video service providers. This bulletin has
been prepared to provide consumers with information on the new DTV
technology, its upcoming deployment, and the capabilities and features that
are expected to be available in the new DTV sets. We will release periodic
updates to this bulletin to help consumers keep up with digital television
developments such as improvements in the compatibility between the digital
programming and equipment used by broadcasters and cable operators."
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Engineering_Technology/Factsheets/dtv9811.html

FCC EXPECTED TO MAKE BROADCASTERS PAY FEE BASED ON REVENUES FROM DIGITAL TV
Issue: Digital Television
The FCC will issue rules today which set annual fees for commercial
broadcasters who derive revenue from subscription and other pay services
using the new digital television technology. Since the spectrum provided
for stations to provide
DTV signals of their basic channel may allow one or more additional channels
to be broadcast simultaneously, Congress and the FCC are seeking to get a
portion of any revenue collected from the extra broadcasts to be returned to
the Government. The new rules will require stations to pay between 4 and 6
percent of subscription revenues they earn from pay-per-view or similar use
of the extra spectrum. The National Association of Broadcasters had
suggested a 2 percent charge. The FCC will also ask for public comment on
how public television stations should be allowed to use their extra spectrum.
[SOURCE: Wall Street Journal (B8), AUTHOR: John Simons]
http://www.wsj.com/

====
ARTS
====

PUTTING A PRICE TAG ON DIGITAL ART
Issue: Arts
The art world is struggling to put a price tag on digital art and it becomes
more acceptable in museums and amongst art connoisseurs. Digital City Inc
http://www.digitalcity.com/, for example, is donating

Communications-related Headlines for 11/18/98

INTERNET
Internet Retail Sales Rising Sharply (WP)
Internet Retailing May Drum Up $13 Billion in Revenue This Year (WSJ)
Yahoo! To Expand Its Shopping Channel As Demand Grows for Online
Commerce (WSJ)
AOL, Netscape Consider Partnership, Including Possible Internet
Browser Deal
(WSJ)
Lawsuit Challenges Internet Subsidy for Parochial Schools (NYT)

COPYRIGHT
Sun Wins Microsoft Injunction In Java Case (WP)
Microsoft Told to Stop Shipments That Violate Contract With Rival (NYT)

TECHNOLOGY & FAMILY
Work & Family: Flood of Pagers, E-Mail Gives Family Means To Communicate
More (WSJ)

INFRASTRUCTURE
Cable and Wireless to Build New Network (NYT)

ANTITRUST
Microsoft 'Tools' Called Barriers (WP)
Microsoft Hampered OS/2, IBM Official Tells Court (NYT)
Gates E-mail Bemoans IBM's Use of Java (WSJ)

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

INTERNET RETAIL SALES RISING SHARPLY (WP)
INTERNET RETAILING MAY DRUM UP $13 BILLION IN REVENUE THIS YEAR (WSJ)
Issue: Electronic Commerce
Online retailing is growing much more quickly than anyone realized.
Shop.org, an association of online retailers, surveying 127 online
companies, concludes in a study that total 1998 Internet consumer commerce
will reach $13 billion. The four top-selling categories of merchandise on
the Web--which account for 80% of all revenue--are computer goods,
entertainment, travel and discount brokerages. Nearly 60% of Internet
revenue is generated by established retailers. Only about 5% of consumers
who visit Web commerce sites make purchases. Ten Web sites (unspecified)
account for 50% of online revenue. The study asserts that the Internet is
bringing new customers to businesses and is not taking sales away from
stores or catalogs.
[SOURCE: Washington Post (C11), AUTHOR: Leslie Walker]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/18/102l-111898-idx.html
[SOURCE: Wall Street Journal (B6), AUTHOR: Rebecca Quick]
http://www.wsj.com/

YAHOO! TO EXPAND ITS SHOPPING CHANNEL AS DEMAND GROWS FOR ONLINE COMMERCE
Issue: Electronic Commerce
Jeff Mallett, Yahoo's COO, says his Internet portal will become more
oriented to commerce. Yahoo is offering comparison shopping in 14
categories which will help shoppers choose among the two million products
offered by 2700 online merchants. Yahoo will not be a seller itself but
will permit shoppers to use a "universal shopping cart" that lets consumers
enter addresses and credit card data only once when buying from multiple
companies. Yahoo hopes to increase the number of key merchants it has under
contract for the service and to provide a new stream of earnings for the
company.
[SOURCE: Wall Street Journal (B6), AUTHOR: George Anders]
http://www.wsj.com/

AOL, NETSCAPE CONSIDER PARTNERSHIP, INCLUDING POSSIBLE INTERNET BROWSER DEAL
Issue: Mergers
A range of options is on the table as high-level officials from America
Online and Netscape Communications continue discussions about online
services and browsers. AOL has an option on January 1, 1999 to terminate or
change the exclusivity clause for browsers that it presently has with
Microsoft. Netscape could replace the current Microsoft browser or be
added as a second option. AOL is concerned that Microsoft's continued
expansion of MSN Web sites pose a threat to its online service. Netscape is
concerned with its decline in the share of the browser market. Other options
could create co-marketing agreements or even give AOL an equity stake in
Netscape.
[SOURCE: Wall Street Journal (B11), AUTHOR: Kara Swisher]
http://www.wsj.com/

LAWSUIT CHALLENGES INTERNET SUBSIDY FOR PAROCHIAL SCHOOLS
Issue: Internet/First Amendment
A Wisconsin group has just filed what might be the first lawsuit involving
the Internet and the First Amendment. The Freedom from Religion Foundation
is challenging a new state program that offers telecommunications subsidies
to public and private schools. The state of Wisconsin's Educational
Telecommunications Access program, similar to the federal E-rate program,
gives educational institutions access to high-speed data lines at highly
discounted rates. The plaintiffs argue that giving parochial schools
discounts would constitute a government subsidy of religion, because the
Internet might be used to access religious materials and would generally be
used for the advancement of religion.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
http://www.nytimes.com/library/tech/98/11/cyber/education/18education.html

=====================
TECHNOLOGY & FAMILY
=====================

WORK & FAMILY: FLOOD OF PAGERS, E-MAIL GIVES FAMILY MEANS TO COMMUNICATE MORE
Issue: Education Technology
Looking your kids in the eye is difficult using a computer, pager, or cell
phone but technology can also play a role in family communication.
Estimates are that only 4 to 5% of U.S. households have all family members
using
technology to communicate regularly, but the number of "tele-households" has
probably doubled in the past year. It is happening in the name of
"connectedness."
E-mail is becoming popular for parents and students (and not just college
students) to communicate regularly. Parents can mix homework reminders with
jokes or bits of online research for the kids. Parents are setting tougher
rules on kids' use of pagers and cell phones and are also using them to
keep in touch.
[SOURCE: Wall Street Journal (B1), AUTHOR: Sue Shellenbarger]
http://www.wsj.com/

===========
COPYRIGHT
===========

SUN WINS MICROSOFT INJUNCTION IN JAVA CASE (WP)
MICROSOFT TOLD TO STOP SHIPMENTS THAT VIOLATE CONTRACT WITH RIVAL (NYT)
MICROSOFT LOSES JAVA DECISION IN U.S. COURT (WSJ)
Issue: Copyright
A federal judge has issued a preliminary injunction that orders Microsoft to
rewrite the Java components of Windows 98 to comply with Sun's version of
their programming language. Ronald M. Whyte, U.S. District Judge in San
Jose, gave Microsoft 90 days to make its Windows 98 and other software
products compatible with Sun's Java specifications or stop selling them. Sun
sued Microsoft last year after Microsoft altered parts of the Java language
so that programs written in Java for other operating systems would not run
on Windows machines and vice versa.
[SOURCE: Washington Post (C11), AUTHOR: Elizabeth Corcoran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/stories/19
98/sun111898.htmIVAL
[SOURCE: New York Times (A1), AUTHOR: Steve Lohr]
http://www.nytimes.com/library/tech/98/11/biztech/articles/18sun.html
[SOURCE: Wall Street Journal (A3), AUTHOR: Lee Gromes]
http://www.wsj.com/

===============
INFARSTRUCTURE
===============

CABLE AND WIRELESS TO BUILD NEW NETWORK
Issue: Technology
Cable and Wireless plans a long-distance "supernetwork" among more than 40
major European cities in 13 countries. C&W said it is prepared to spend $1
billion over five years to build the high-speed telecommunications network.
The network is more ambitious than plans announced previously by MCI
Worldcom and Colt Telecom Group. By directing users onto leased or
purchased high-speed lines, C&W anticipates doubling its revenue every year
for the next five years.
[SOURCE: New York Times (Nov. 17,C6), AUTHOR: Bloomberg News)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/17cable.html

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

MICROSOFT 'TOOLS' CALLED BARRIERS (WP)
MICROSOFT HAMPERED OS/2, IBM OFFICIAL TELLS COURT (NYT)
GATES E-MAIL BEMOANS IBM'S USE OF JAVA (WSJ)
Issue: Antitrust
The creation of personal computer operating systems that could compete with
Microsoft's Windows was restricted by Microsoft Corp.'s market dominance and
business practices, according to John Soyring, softtware director for IBM.
Soyring was on the stand yesterday at the Microsoft antitrust trial.
Soyring said that Microsoft licensing agreements prevent software designers
from using its popular programming "tools" which effectively stymied
competition. Microsoft contends that its tools work reliably only on
Windows-compatible products and that IBM, the creator of the rival OS2
operating system, restricts use of its own tools. In an e-mail introduced
in court Microsoft's Bill Gates bemoaned IBM's support for Java, a
computer-programming language which does not require Windows and called IBM
"rabid Java backers."
[SOURCE: Washington Post (C12), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm
[SOURCE: New York Times (A1), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/98/11/biztech/articles/18soft.html
[SOURCE: Wall Street Journal (B6), AUTHOR: Bryan Gruley & Keith Perine]
http://www.wsj.com/

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

Communications-related Headlines for 11/17/98

TELEPHONE
AT&T Says It Shouldn't Have to Grant Internet Access Via Upgraded
Cable Lines (WSJ)

COMPUTERS
At Comdex, the PC's Future Is Compact (WP)
Executives at Comdex Tout New Modem They Hope Will Boost Use of
the Internet (WSJ)

DTV
FCC Releases Digital Television Consumer Bulletin (FCC)

JOURNALISM
Slate's Coverage of Microsoft Trial Is Proving Difficult (NYT)
Christian Science Monitor Plan Includes New Format, Marketing and
Investment (WSJ)

BOOKS
Beyond Bestsellers: Online Buyers Mine the Blacklist (CyberTimes)

CAMPAIGN FINANCE
High Court Demurs on Campaign Funds (WSJ)

ANTITRUST
A Taped Gates Debates Some Definitions (WSJ)
A Testy Gates Dodges Deposition Questions (WP)
On Tape, Gates Seems Puzzled by Words Like 'Market Share' (NYT)

==========
TELEPHONE
==========

AT&T SAYS IT SHOULDN'T HAVE TO GRANT INTERNET ACCESS VIA UPGRADED CABLE LINES
Issue: Telephone
AT&T Corp. said its merger with TCI will be jeopardized if the phone company
is forced to give competitors equal access to the upgraded cable lines it
will spend billions to create under the deal. American Online and the Bell
phone companies had requested the FCC grant them equal access because AT&T
wants to use TCI's broadband cable connections to provide local telephone
service and Internet service to the home. AT&T formally responded to those
requests yesterday. For Internet service TCI already has an interest in the
At Home Network that could cut into America Online's market share if widely
promoted. AOL says that AT&T and TCI should be forced to let consumers
choose among several companies, including AOL, for Internet service. "This
is guerrilla warfare between companies trying to fight each other's
mergers," said Scott Cleland, a policy analyst.
[SOURCE: Wall Street Journal (B6), AUTHOR: Rebecca Blumenstein & Stephanie
H. Mehta]
http://www.wsj.com/

===========
COMPUTERS
===========

EXECUTIVES AT COMDEX TOUT NEW MODEM THEY HOPE WILL BOOST USE OF THE INTERNET
(WSJ)
AT COMDEX, THE PC'S FUTURE IS COMPACT (WP)
Issue: Technology
The Comdex computer industry show in Las Vegas this week is concentrating on
items for the home or for the individual. "We've become multiple-device
people," said Cheryl Currid, president of a market research firm. She also
is an example with her electronic telephone book, her wireless phone that
receives e-mail and her two-pound laptop. In a speech at the convention
Microsoft's Bill Gates did concede that the public would get overwhelmed by
so many devices and warned that users will only buy products if they
simplify rather than complicate their lives. But many companies are
announcing and displaying the newest in their product lines this week. In
the race for different and smaller, National Semiconductor is typical with
its WebPad, a three pound device that can hook up to the Internet via a
wireless connection and "let you sit on your couch and do e-mail." Compaq
announced the availability of digital subscriber line modems for its
computers to provide high speed data downloads over telephone lines.
[SOURCE: Wall Street Journal (B9), AUTHOR: WSJ Staff Reporters]
http://www.wsj.com/
[SOURCE: Washington Post (C10), AUTHOR: Shannon Henry]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/17/094l-111798-idx.html

====
DTV
====

FCC RELEASES DIGITAL TELEVISION CONSUMER BULLETIN
Issue: FCC/Digital TV
From the FCC press release: "The FCC's Office of Engineering and Technology
[Monday] issued a Digital Television Consumer Information Bulletin to
provide consumers with more information on what promises to be one of the
most significant developments in television technology since the advent of
color television in the 1950's." [The question-and-answer formatted
bulletin is available at the Internet address below.]
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Engineering_Technology/News_Releases/1998/nret80
15.html

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

SLATE'S COVERAGE OF MICROSOFT TRIAL IS PROVING DIFFICULT
Issue: Ownership/Journalism
How does Microsoft's online magazine Slate cover the antitrust trial of
their parent company? Well, it appears as if they are having some difficulty
figuring that out themselves. "My initial thought was 'Can we get away with
skipping it?'" Michael Kinsley, Slate's editor, asked himself when the trial
first began. Since that time, three different reporters have been assigned
to the case, the first of which resigned after having described one
Microsoft lawyer as having "the warmth of a corpse." Although the
resignation was reportedly unrelated to the trial coverage, the magazine has
received much criticism in other media outlets. The most recent reporter to
cover the trial story for Slate began her first column with this
declaration: "I will not pretend to be an objective observer of the
Microsoft trial. You wouldn't believe me if I did."
[SOURCE: New York Times (C6), AUTHOR: Alex Kuczynski]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/17trial.html

CHRISTIAN SCIENCE MONITOR PLAN INCLUDES NEW FORMAT, MARKETING AND INVESTMENT
Issue: Newspaper
In an effort to get new readers and to appeal to a younger audience, the
Christian Science Monitor is redesigning its format and planning on an
advertising campaign. With only 1/3 as many readers as it had only 10 years
ago, the Monitor is getting new support from the Christian Science church to
reconfigure its front page and section fronts, to add additional coverage
and pages and to begin advertising in other print media for the first time
in a decade. The revitalization effort comes after the Christian Science
Church had systematically ended ventures in television, magazines and radio.
[SOURCE: Wall Street Journal (B8), AUTHOR: Alec Klein]
http://www.wsj.com/

BEYOND BESTSELLERS: ONLINE BUYERS MINE THE BACKLIST
Issue: Books/E-Commerce
What books are big sellers online? Well, according to Internet book
merchants they are not written by Steven King or John Grisham. The majority
of their sales come from books that don't appear on any bestseller list.
Internet audiences seem to have an appetite for the obscure. One example is
Marlo Thomas's 1970's children's album "Free to Be You and Me," which
appeared in Amazon.com's top 100 CDs list two months ago. The online market
for books is still too young to know exactly where it will go, but for now
it means money for publishers who aren't used to seeing it.
[SOURCE: New York Times (CyberTimes), AUTHOR: Bob Tedeschi ]
http://www.nytimes.com/library/tech/98/11/cyber/articles/17commerce.html

==================
CAMPAIGN FINANCE
==================

HIGH COURT DEMURS ON CAMPAIGN FUNDS
Issue: Campaign Finance
The Supreme Court refused to hear two appeals yesterday effectively
upholding the Buckley vs. Valeo decision on campaign financing from 1976.
The failure of a push for a federal overhaul on campaign financing failed in
the last Congress creating more interest in the fate of two local efforts to
overhaul campaign-finance laws. A 1995 Cincinnati measure to cap
expenditures in specific elections and an Arkansas ballot initiative to
lower the limit on individual campaign contributions were both thrown out by
federal appeals court. Those decisions were confirmed by the Supreme
Court's decision not to hear the cases. The Buckley vs. Valeo ruling
allowed some limits on individual campaign contributions in the name of
preventing corruption but suggested such limits must be carefully
scrutinized. The ruling concluded that overall spending limits violate
First Amendment rights.
[SOURCE: Wall Street Journal (B11), AUTHOR: Edward Felsenthal]
http://www.wsj.com/

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

A TAPED GATES DEBATES SOME DEFINITIONS (WSJ)
A TESTY GATES DODGES DEPOSITION QUESTIONS (WP)
ON TAPE, SEEMS PUZZLED BY WORDS LIKE 'MARKET SHARE' (NYT)
Issue: Antitrust
In a taped deposition yesterday, Microsoft Chairman Bill Gates defended his
company in the government's antitrust trial against it. Mr. Gates reportedly
appeared testy and quibbled with Government Lawyer David Boise about the
definitions of several words including "market share" and "concerned". The
20 minute video expert of Gates - inconsistent with the image of him as
brilliant strategist and the world's richest man-caused the judge to laugh
out loud more than once. After yesterday's session, Microsoft spokesman
Mark Murry said that the taped segments had no relevance to the case. "The
government is simply trying to use Bill Gates testimony to inject some life
into their failing case."
[SOURCE: New York Times (C1), AUTHOR: ]
http://www.nytimes.com/library/tech/98/11/biztech/articles/17soft.html

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

Communications-related Headlines for 11/16/98

OWNERSHIP
FCC Moving Cautiously, On Ownership (B&C)

CABLE & BROADCAST
FCC To Levy Fees For Digital Service (B&C)
Cable Anxious About FCC Study (B&C)

INTERNET
Internet Governance Board Confronts a Hostile Public (NYT)
Get Ready for E-Billing (NYT)
Open Government on the Web (WP)
They Have Their Eyes on You (WP)
A Different Course (WSJ)
Compaq Readies Gear for Speedier Online Linkages (WSJ)
Trial Will Test China's Grip on the Internet (NYT)

TECHNOLOGY
Technology: Thinking About Tomorrow (WSJ)

MAGAZINES
Time Magazine's One-Advertiser Issues Become an Issue for Debate (NYT)

==========
OWNERSHIP
==========

FCC MOVING CAUTIOUSLY, ON OWNERSHIP
Issue: Ownership
In the next few weeks, a significant change is expected in the 23- year old
rules that restrict broadcasting/newspaper cross ownership. The Federal
Communications Commission will soon allow media companies to own both radio
- but not television --stations and newspapers in the same cities. FCC
commissioners are also expected to relax the ban against owning more than
one TV station in a market and the one-to-a-market rule on TV and radio
stations. While many media owners feel that the rollbacks do not go far
enough, FCC Chairman William Kennard is worried that consolidation has
already had an adverse effect on diversity in broadcasting. "We must make
sure whatever we do does not compromise our country's long-standing
principles of diversity and competition in the broadcast industry."
[SOURCE: Broadcasting and Cable (p27), AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/

===================
CABLE & BROADCAST
===================

FCC TO LEVY FEES FOR DIGITAL SERVICE
Issue: DTV
The FCC will likely require broadcasters to pay the government between 4%
and 6% of any revenue from subscription services they offer with their
digital spectrum. The 1996 Telecommunications Act mandates the FCC to
collect fees on any digital services from which broadcasters earn profits
other than commercial advertising. Because broadcasters will receive their
digital spectrum for free, lawmakers argued that they would have an unfair
advantage over competiting media if they could offer ancillary services
without having to pay anything for the spectrum. Possible subscription uses
include data transmission, software distribution, and stockmarket updates.
Public broadcasters have requested that they remain exempt from any fees.
[SOURCE: Broadcasting and Cable (p24), AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/

INTERNET GOVERNANCE BOARD CONFRONTS A HOSTILE PUBLIC
Issue: Internet Regulation
The audience of online constituents sent a strong message of "We don't trust
you" to eight people who will be governing them in the future. The Internet
Corporation for Assigned Names and Numbers was holding its first public
meeting since being created. It is charged with creating the new structure
for avoiding chaos on the Internet, in part by creating the business
structure for registering names in several of the most popular Web domains.
The Cambridge, MA meeting was designed, according to the panel's chairwoman,
Esther Dyson, to listen and get input and "to get your trust." Trust came
gradually. Critics claimed the nonprofit corporation was created secretly.
Many critics distrust any kind of imposed regulation on the Internet.
[SOURCE: New York Times (C4), AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16internet-admin
.html

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

OPEN GOVERNMENT ON THE WEB
Issue: Internet
[Editorial] "Putting more government information on public view via the
Internet sounds terrific in theory

Communications-related Headlines for 11/13/98

INTERNET
Planners of Internet's Future to Face the Public (CyberTimes)
Networks for People: Society and Information Infrastructure (NTIA)
Business School Nurtures Entrepreneurs (CyberTimes)
Former Playmate Wins Round in Fight Over Web Site Labels (CyberTimes)

REGULATION
Ameritech Awaits FCC Clarification (ChiTrib)
FCC Orders MCI to Stop Charging "Non-Subscriber" Rates for
Direct-Dialed Calls (FCC)

JOBS
400 People Make Noise About ABC's 10-Day-Old Lockout (NYT)

INTERNATIONAL
Cuba OKs Reopening of AP Bureau (WP)
Bowing to Competition, Deutsche Telekom Will Cut Prices (NYT)

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

PLANNERS OF INTERNET'S FUTURE TO FACE THE PUBLIC
Issue: Internet
The Internet Corporation for Assigned Names and Numbers (ICANN)
http://www.iana.org/newiana.html will hold what some are equating as a
constitutional convention this weekend. The nonprofit's newly appointed
board hopes to get more input on how to create a permanent, open,
representative body. "I hope its going to be friendly, but I'm sure there
will be long lines at the mikes," said Esther Dyson, Chairman of ICANN. Ms.
Dyson said that a primary responsibility of the board is to show that the
organization will have a representative membership and operates in a fair
and open manner. Critics of the new organization contend that ICANN's bylaws
were drafted privately and the nine interim board members were selected
secretly rather than elected. "I feel there is too much paranoia and
pessimism," said Milton Mueller, an associate professor and Syracuse
University's school of information studies. "The really stupid things have
been avoided: no membership, insulation of the organization, and lack of
accountability. This is organization 101. Things are being fixed and I think
the government is somewhat clueful, and I believe in the rationality of most
people involved." Additional information available at
http://www.mama-tech.com/boston.
[SOURCE: New York Times (CyberTimes), AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/98/11/cyber/articles/13domain.html

NETWORKS FOR PEOPLE: SOCIETY AND INFORMATION INFRASTRUCTURE
Issue: Conference
From the media advisory: "The Commerce Department's National
Telecommunications and Information Administration (NTIA) will host a two-day
conference titled "1998 Networks for People: Society and Information
Infrastructure -- The Next Generation" on December 8-9, 1998 in Washington,
DC. The conference is open to the public and is free. People who are
interested in the use of technology to improve their lives and strengthen
our communities should attend. For more information, please call NTIA's
Telecommunications and Information Infrastructure Assistance Program (TIIAP)
at 202-482-2048 or visit NTIA's website at
http://www.ntia.doc.gov/otiahome/tiiap/. The website includes information
on the conference, an agenda, and online registration."
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/netpeop111098.htm

BUSINESS SCHOOL NURTURES ENTREPRENEURS
Issue: EdTech
The University of California at Berkeley's Haas School of Business
http://www.haas.berkely.edu offers a handful of students space in a
school-sponsored "incubator" program to help grow start-up companies. "I
learn something in class at 12:00 and I'm over here at 12:30 with a chance
to introduce it real-time into the business," said one student who says he
spends "every free period" at school working on the startup. The incubator
offers state-of-the art computers and high-speed Internet connection, but
the office space is sparse. There are ~600 business incubators around the
country -- 27% are affiliated with universities. For more info see the
National Business Incubator Association http://www.nbia.org.
[SOURCE: New York Times (CyberTimes), AUTHOR: Matt Richtel
mrichtel( at )nytimes.com]
http://www.nytimes.com/library/tech/98/11/cyber/articles/13incubator.html

FORMER PLAYMATE WINS ROUND IN FIGHT OVER WEB SITE LABELS
Issue: Internet/Trademark
Meta tags are information imbedded into web pages that viewers are not
intended to read. Some give instructions to users' browsers on how a Web
page should be displayed while others are meant to aid search engines -- an
online trading company may have "stocks" or "trading" embedded in the
keyword meta tag. But a recent court case is making these tags controversial
-- especially when they contain copyrighted words by a webmaster not
affiliated with the organization that holds the copyright. Judge Judith N.
Keep has so far treated meta tags like card catalog entries in the case. As
long as the tags correctly describe what can be found on the site, then they
are OK. But the copyright holder contends that any company could exploit the
ruling and embed the company's name in mega tags and draw traffic from the
site visitors were really looking for. "This is an absolutely crucial case,"
said an intellectual property law expert. "The trademark owners have won or
favorably settled all the meta tag cases except this one. This is the case
that they are worried about." For more information see
http://www.pmdlaw.com/PlayboyWellesDocs.htm
[SOURCE: New York Times (CyberTimes), AUTHOR: Carl Kaplan
kaplanc( at )nytimes.com]
http://www.nytimes.com/library/tech/98/11/cyber/cyberlaw/13law.html

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

AMERITECH AWAITS FCC CLARIFICATION
Issue: Bandwidth
In a speech at the Economic Strategy Institute, Ameritech CEO Richard
Notebaert said the company is waiting on a ruling from the Federal
Communications Commission before deciding when to rollout high-speed data
connections know as digital subscriber lines (DSL). The FCC ruling is
expected in early 1999. Notebaert suggested that regulators in Europe could
teach the FCC about promoting genuine competition. "In Europe," he said, "we
are more likely to be judged by the value we add and the jobs we
create...America could take a lesson."
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9811130080,00.html

FCC ORDERS MCI TO STOP CHARGING "NON-SUBSCRIBER" RATES FOR
DIRECT-DIALED CALLS
Issue: Long Distance
FCC Orders MCI to Stop Charging "Non-Subscriber" Rates for Direct-Dialed
Calls; Practice Deemed "Inherently Confusing" to Consumers (Memorandum
Opinion and Order, FCC 98-297). From news release: "On November 10, the
Commission ordered MCI to stop charging its "non-subscriber" rates for
direct-dialed long distance calls. Consumers affected by this practice are
those who remain presubscribed to MCI -- that is, consumers whose calls are
handled by MCI when they dial "1" plus an area code and local telephone
number -- after their accounts are removed from MCI's billing system. Noting
that customers who are presubscribed to MCI may reasonably consider
themselves "subscribers," the Commission concluded that the practice of
charging these customers non-subscriber rates is inherently confusing and,
therefore, unreasonable. The action resolves two formal complaints by
customers who were charged MCI's non-subscriber rates."
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8083.html

====
JOBS
====

400 PEOPLE MAKE NOISE ABOUT ABC'S 10-DAY-OLD LOCKOUT
Issue: Employment
Yesterday, about 400 people gathered outside of ABC's New York offices
protesting the 10-day lockout of over 2,200 members of the National
Association of Broadcast Engineers and Technicians. The employees were
locked out after they staged a one-day strike to protest the Network's
refusal to disclose specific information about their new health care plan.
Both sides are awaiting a decision from the National Labor Relations Board
on weather ABC is guilty of unfair labor practices. If so, the network could
be forced to end the lockout.
[SOURCE: New York Times (A24), AUTHOR: Jodi Wilgoren]
http://www.nytimes.com/yr/mo/day/news/national/regional/ny-abc-rally.html

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

CUBA OKS REOPENING OF AP BUREAU
Issue: Journalism/International
The Associated Press received permission Thursday to reopen its bureau in
Havana, Cuba. The AP office was forced by the Cuban government to close in
1969. The agreement comes on the heels of a visit to Cuba by a high level
delegation of AP officials including Louis Boccardi, president and CEO, who
met with President Fidel Castro and other senior officials. Boccardi said,
"We are pleased that our long-standing request has been granted." AP will
be the second U.S.-based news organization with a permanent presence in
Cuba. Cable News Network opened a bureau in March 1997. The Clinton
Administration has given permission to 10 U.S.-based news organizations to
open bureaus in Cuba. U.S. government permission is required because of the
U.S. trade embargo against the island.
[SOURCE: Washington Post Online, AUTHOR: Anita Snow (Associated Press)]
http://www.washingtonpost.com/wp-srv/WAPO/19981113/V000141-111398-idx.html

BOWING TO COMPETITION, DEUTSCHE TELEKOM WILL CUT PRICES
Issue: Telephone/International
Deutsche Telekom AG of Germany announced Thursday it would cut prices on
long-distance telephone calls by up to 63 percent. The decision is the
result of a loss of 25 percent of its long distance business to upstart
companies that have been encouraged by the official European opening of
telephone competition in January. Small companies have been able to re-sell
DT's own services at lower prices since new European Union rules require
traditional monopolies to give rivals access to their networks at reasonable
rates. Analysts said that DT was slow to revamp its own rates and kept its
prices too high. Deutsche Telekom has sued to overturn the price
regulations and sued to block some of its rivals' advertising. DT is also
lobbying the new German government for rate restructuring, arguing that the
company is being forced to subsidize competitors. Ron Sommer, DT's CEO,
said Thursday, "What we are seeing is a price war being waged on Telekom's
back."
[SOURCE: New York Times (C3), AUTHOR: Edmund L. Andrews]
http://www.nytimes.com/yr/mo/day/news/financial/germany-telephone.html

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

MICROSOFT TRIES TO DISCREDIT INTEL EXECUTIVE (NYT)
MICROSOFT ATTACKS INTEL EXECUTIVE AS BIASED (WSJ)
MICROSOFT ATTACKS CREDIBILITY OF INTEL EXEC (WP)
MICROSOFT ATTORNEY ATTEMPTS TO DISCREDIT INTEL WITNESS (ChiTrib)
Issue: Antitrust
Microsoft attorneys vigorously attempted to discredit Intel Vice President
Steven McGeady, a key government witness in their antitrust suit against
Microsoft. Mr. McGeady accused Microsoft executives of pushing Intel out of
the software market with threats and intimidation. Microsoft said that it
would pull support for Intel's next generation chip if Intel continued to
develop a technology called Native Signal Processing, according to Mr.
McGready. Lawyers for Microsoft tried to show that McGeady was a disgruntled
employee who didn't represent Intel's point of view.
[SOURCE: New York Times (C1), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/98/11/biztech/articles/13soft.html
[SOURCE: Wall Street Journal (B5), AUTHOR: Keith Perine and Bryan Gruley]
http://www.wsj.com/
[SOURCE: Washington Post (B1), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Andrew Zajac]
http://chicagotribune.com/textversion/article/0,1492,SAV-9811130068,00.html

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
...and we are outta here. Have a great weekend and we'll be back on Monday.