Communications-related Headlines for 2/8/99
HAPPY BIRTHDAY, TELECOM ACT
TELEVISION
Picture Clears, But Views Clash (ChiTrib)
Local Television Ownership Rules (FCC)
MediaOne Plans Cable-Box Deal With Philips (WSJ)
RADIO
Low Power FM Radio (FCC)
No Static at All (WP)
INTERNET
Women's Online Ranks Rise (WP)
Commission to Study Internet Taxes Delayed (CyberTimes)
Manufacturers Online Stores Upset Their Retailers (WP)
Nextel, Netscape to Offer Cellular Service That Combines
Voice, Data and Internet (WSJ)
Motorola, Cisco Plan Wireless Internet (ChiTrib)
Microsoft to Announce Deal With BT to Develop Internet
and Data Service (WSJ)
MERGERS
Bell Atlantic's Progress Report on Compliance with
Merger Order Conditions (FCC)
CONSUMER ISSUES
Consumer Friendly Website Launched (FCC)
Speech: Thinking Like a Consumer (FCC)
JOURNALISM
Dedicated Group Works to Return Narrative
Journalism to Newspapers (NYT)
INTERNATIONAL
Mickey Gets China's Ear (WP)
ANTITRUST
Us Probes the Links of Film Studios, Theaters (WSJ)
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TELEVISION
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PICTURE CLEARS, BUT VIEWS CLASH
Issue: Digital Television
With the new capacity the transition to digital offers television
broadcasters, Jones asks, will digital television be the same old TV, the
same old prime time offering of jiggly sitcoms, weepy hospital melodramas
and mayhem-laden local newscasts? Gigi Sohn, executive director of the Media
Access Project, said, "Here we have a time when broadcasters are being given
a huge amount of a valuable resource for free, when it can provide many
channels instead of just one. This certainly gives the government a
rationale to expect something more in return from broadcasters." While
Martin Franks, senior vice president of CBS Corp. counters, "Everybody's a
good expert on television. Just ask them. We can't get the government and
others to realize that for many of the citizens of this country, they kinda
like television the way it is." Mr. Frank continues, "Until the intellectual
elites come to grips with the fact that TV will never be the Metropolitan
Opera, we'll keep having these debates that go no place. It's not at all
clear that the public wants what the elites are trying to force on them."
But a recent poll released by the Benton Foundation counters that -- the
poll found that Americans want more educational programming, fewer
commercials during kids' TV shows, and financial support from broadcasters
for public TV and non-commercial programming. Charles Benton, the chairman
of the Benton Foundation who served with Ms. Sohn, Mr. Franks' boss Les
Moonves and others on a Presidential committee asked to recommend public
service obligations for broadcasters said, "At the beginning of every new
medium, the industry talks about the education and public service
obligations, which are the arguments they made to get the government to get
the spectrum for free. It would not have been unreasonable to put this up
for auction up front, or to make very clear what the obligations are. Right
now the horse is out of the barn." But the debate between commercial
broadcasters and public interest advocated continues and will now move to
the Federal Communications Commission for public comment.
[SOURCE: Chicago Tribune (Sec4, p.1), AUTHOR: Tim Jones]
http://chicagotribune.com/textversion/article/0,1492,ART-23020,00.html
LOCAL TELEVISION OWNERSHIP RULES
Issue: Television
The Federal Communications Commission will hold an en banc hearing on
February 12, 1999, from 9:30 a.m. to 12:00 p.m., on its pending review of
its local television ownership rules, MM Docket Nos. 87-8 and 91-221. The
hearing will take place at the Commission's new headquarters building,
located at 445 12th Street, S.W., Washington, D.C. 20554,in the Meeting Room
on the 12th Street Level, Room TW-C3-5. The purpose of this en banc hearing
is to educate and inform the Commissioners, FCC staff, and the public about
differing perspectives on whether the Commission's local TV ownership rules
should be modified in response to ongoing changes in the mass media
industry. The Commission's pending proceeding on this issue is part of a
larger examination of these and other broadcast media ownership rules first
initiated by the Commission in 1991, and more recently guided by the
statutory directives of the Telecommunications Act of 1996. For more info,
see the URL below, the Public Notice
http://www.fcc.gov/Bureaus/Mass_Media/Public_Notices/da990281.html or
contact Charles Logan (202) 418-2120 blogan( at )fcc.gov or Vicki Phillips
(202) 418-2130 vphillip( at )fcc.gov.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1999/nrmm9004.html
MEDIAONE PLANS CABLE-BOX DEAL WITH PHILIPS
Issue: Cable
MedioOne is expected to announce today a deal with Philips Electronics NV of
the Netherlands to develop a digital set-top box, "aimed at driving down prices
and giving consumers more choice." The boxes are expected to be ready for sale
this summer, well ahead of the federal deadline for making boxes available for
customers. They are minicomputers, which are necessary to handle the digital
services cable companies are planning to offer like Internet access,
interactive video and phone service. The boxes will start at $300 and customers
will have the option of leasing them. "Over time, many observers expect
consumers
routinely to buy their set-tops, much like they now do telephones," observers
say. By moving from "propriety technical standards for cable set-tops" to
"open" standards," the cable industry is hoping to spur innovation among
manufacturers, attract other companies and drive prices down.
[SOURCE: Wall Street Journal (B9), AUTHOR: Leslie Cauley]
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RADIO
=====
LOW POWER FM RADIO
Issue: Radio
FCC Proposes Licensed Low Power FM Radio; Seeks Comment on Engineering,
Service Rules for New System (MM Docket 95-25,FCC 99-6). On January 28, 1999
the FCC proposed to license new 1000 watt and 100 watt low power FM (LPFM)
radio stations, and also sought comment on establishing a third "microradio"
class at power levels from 1-10 watts. The Commission's goals are to provide
new opportunities for community-oriented radio broadcasting, foster
opportunities for new radio broadcast ownership and promote additional
diversity in radio voices and program services, while protecting the
integrity of the spectrum. New LPFM stations could provide a low-cost means
of serving urban communities and neighborhoods, as well as populations
living in smaller
towns and communities. The FCC's consideration of the institution of a low
power radio service requires broad participation and involvement by all
segments of the public as well as the industry.
Comment Date: April 12, 1999
Reply Comment Date: May 12, 1999
[SOURCE: FCC]
http://www.fcc.gov/mmb/prd/lpfm/
NO STATIC AT ALL
Issue: Radio
Three companies are in a race to develop the technology to bring radio
stations into the digital age. Digital radio promises to make FM broadcasts
sound as crisp as compact disks and AM stations could sound as clear as FM
does now with no signal fade or static. Plus digital radio stations will be
able to produce text or other information which could be received by digital
radios. "There's going to be a huge 'wow' factor, especially when people
hear the audio quality," USA Digital Radio chief executive Bob Stuble said.
"The whole world is going digital, and [the radio industry] has to get
there, too." Two other companies, Digital Radio Express Inc. and Lucent
Digital Radio, are also vying to produce the technology that will be
accepted by the Federal Communications Commission and that will permit
simultaneous broadcasting in digital and analog formats during the
transition period. The FCC is in the very early rounds of choosing the specs
for digital radio. All sides acknowledge that a single winner may not
emerge from the FCC's bake-off. The competitors could throw in together in a
"grand alliance" that permits each to contribute something to the
standard-setting technology. [This all sounds so familiar, but I just can't
put my finger on it...]
[SOURCE: Washington Post (F5), AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-srv/WPlate/1999-02/08/151l-020899-idx.html
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INTERNET
========
WOMEN'S ONLINE RANKS RISE
Issue: Gender
This year for the first time, the number of women using online services is
likely to match the number of men online, a survey of the International Data
Group predicts. Last year women were 48% of the people on the
Internet, and the percentage of women has been growing consistently. Frank
Gens, a senior vice president with International Data said, "Women aren't
into just surfing the hours away." They tend to go onto the Internet with a
specific goal in mind, get it done and get off. That helps to explain why
women spend 7.5 hours per week online and men spend 9 hours per week. Women
are more likely to send e-mail than men. Women are still advised to be
cautious online, even when taking part in discussion groups that cater to
women. "Don't give out personal information, like saying 'I live here,'"
said one mother who used sites and discussion groups to find treatment for
an ailing son.
[SOURCE: Washington Post (F19), AUTHOR: Elizabeth Corcoran]
http://www.washingtonpost.com/wp-srv/WPlate/1999-02/08/038l-020899-idx.html
COMMISSION TO STUDY INTERNET TAXES DELAYED
Issue: E-Commerce
The Advisory Commission on Electronic Commerce has encountered a major
stumbling block before it has even begun. The Internet Tax Freedom Act
provided for the creation of this special committee to study taxation of
commerce on the Internet. The Act stipulated that four Congressional leaders
were to appoint industry leaders and state and local officials to the
commission. The problem, however, is that too many industry representatives
have been appointed, while local governments are inadequately represented.
It appears that the Congressmen are not very eager to take back any of their
appointments. In response, the White House has proposed passing new
legislation to increase the size of the panel so that existing appointments
can stand and new appointments can be made to balance out the group. In the
meantime, 4 months have already passed out of the 18 that the panel has to
give its recommendations to Congress.
[SOURCE: CyberTimes, AUTHOR: Jerri Clausing]
http://www.nytimes.com/library/tech/99/02/cyber/articles/08tax.html
MANUFACTURERS ONLINE STORES UPSET THEIR RETAILERS
Issue: Electronic Commerce
Efforts by Nike, Levi Strauss and other companies to bypass retailers by
selling directly from their company websites underscores how the Internet is
complicating long-standing business relationships. It is sending tremors
through the retailing and manufacturing industries, which have historically
been close allies as well as competitors. The stakes eventually will include
market share and for some, perhaps even survival. For consumers, the
changing relationships are starting to affect selection and price. At least
for now, most manufacturers that have ventured online are selling at or near
retail price. Holding back the trend is the view that some products, such as
high-end consumer electronics and couture clothing, are more likely to
encourage inspection, something that must be done in a retail store, not an
online store.
[SOURCE: Washington Post (A1), AUTHOR: Stephanie Stoughton & Leslie Walker]
http://www.washingtonpost.com/wp-srv/business/daily/feb99/online8.htm
NEXTEL, NETSCAPE TO OFFER CELLULAR SERVICE THAT COMBINES VOICE, DATA AND
INTERNET
Issue: Universal service
Nextel Communications Inc. and Netscape Communication Corp. have joined efforts
in producing a cellular phone that will also offer e-mail and Internet access.
The product will be unveiled today at an annual trade show in New Orleans and
is expected to be ready for national distribution the first quarter of 2000.
Prices are undetermined. Two other companies are involved in the product:
Unwired Planet Inc will make the tiny wireless browsers, and Motorola will
manufacture the phones. "Nextel Online is one of the first wireless-data
products to be deployed over a national, all-digital network." What is key
here is that Nextel Online integrates data, voice and
their unique offerings," said Bukasa Tshilombo, a senior analyst at
Dataquest Inc. The product can be tailored to the individual consumer. A
portal may include directory of local painters, for example. The phones may
be used as a wireless modem to connect to a laptop or handheld computer.
[SOURCE: Wall Street Journal (B5), AUTHOR: Nicole Harris]
MOTOROLA, CISCO PLAN WIRELESS INTERNET
Issue: Internet Access
Motorola and Cisco are expected to announce plans today to invest a billion
dollars into a system that will deliver voice, data nd video over existing
cellular telephone stations. "The goal is that, instead of having four or
five communication devices in your briefcase, you'll have one or two," said
Doug Wills, a spokesman for Cisco. The companies will also open four joint
research and development centers -- two in the US and two abroad. The system
will use the Internet Protocol -- or IP -- platform. Analysts question if
the system will be able to handle bulky video transmissions, but the two
companies say they already have won support of big telephone service providers.
[SOURCE: Chicago Tribune (Sec1, p.3), AUTHOR: George Gunset]
http://chicagotribune.com/textversion/article/0,1492,SAV-9902080030,00.html
JOINT VENTURE AIMS TO HELP THE INTERNET GO WIRELESS
[SOURCE: New York Times (C1), AUTHOR: ]
http://www.nytimes.com/library/tech/99/02/biztech/articles/08wire.html
MICROSOFT TO ANNOUNCE DEAL WITH BT TO DEVELOP INTERNET AND DATA SERVICE
Issue: Internet
Microsoft is planing to work with British Telecommunications in developing a
wireless Internet and data service in Europe. Microsoft entered into a
similar agreement with the US wireless carrier Qualcom last November. The
software giant appears to be eager to invest in developing high-speed mobile
connections to fuel demand for its software.
[SOURCE: Wall Street Journal (B9), AUTHOR: David Bank]
http://wsj.com/
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MERGERS
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BELL ATLANTIC'S PROGRESS REPORT ON COMPLIANCE WITH MERGER ORDER CONDITIONS
Issue: Mergers
From the Public Notice
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1999/da990296.html
: Through this Public Notice, the Commission seeks comment regarding Bell
Atlantic's compliance with the conditions imposed in the Bell Atlantic/NYNEX
Merger Order. [The Commission] invites parties to present their views on
Bell Atlantic's progress report and the effectiveness of the Merger Order
Conditions at promoting competition in the post-merger Bell Atlantic region.
Interested parties may file comments regarding their experience with the
Merger Order conditions no later than March 8, 1999. Responses to these
comments may be filed no later than March 23, 1999. All filings should
reference the delegated authority number assigned to this proceeding, DA
99-296, and the applicable file number, AAD File No. 98-24. An original and
4 copies of all pleadings must be filed with the Commission's Secretary,
Magalie Roman Salas, 445 12th Street, S.W., Counter TWA 325, Washington,
D.C. 20554. In addition, copies may be filed between the hours of 4:00 PM to
5:30 PM at the Temporary Filing Facility, 1919 M Street, N.W., Room 222,
Washington, D.C. 20554. In addition, four copies of each pleading must be
filed with Debbie Byrd of the Accounting Safeguards Division, 2000 L Street,
N.W., Suite 201, Washington, D.C., 20554, and with International
Transcription Service, Inc., the Commission's duplicating contractor, at its
office at 1231 20th Street, N.W., Washington, D.C. 20036, telephone (202)
857-3800.
[SOURCE: FCC]
http://www.fcc.gov/ccb/Mergers/BA_NYNEX/comrept.html
===============
CONSUMER ISSUES
===============
CONSUMER FRIENDLY WEBSITE LAUNCHED
Issue: Telephone Regulation
The FCC officially launched the Common Carrier Bureau Enforcement Division's
newly designed website. This is the first stage of new Consumer Network
project being undertaken by the Bureau. The information provided on the
pages of this new, consumer-friendly website will further the FCC's efforts
to educate consumers about their rights as users of telephone-related
services. In addition, consumers will now be able to file their complaints
against telephone companies with the FCC on-line by completing the Consumer
Complaint Form. This on-line form is accessible to persons with
disabilities. Before this, consumers had to send in complaints by postal
mail. The on-line complaint system will allow the Enforcement Division to
process consumer complaints faster. Chairman William Kennard said, "Launch
of this new website certainly marks a great day for American consumers. I am
delighted that the Common Carrier Bureau has been able to provide everyone
with a simple to use resource that so well promotes our commitment to make
the information and consumer protection resources of the Commission readily
available to all." The URL for the new website is
http://www.fcc.gov/ccb/enforce/.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9007.html
SPEECH: THINKING LIKE A CONSUMER
Issue:
Chairman Kennard's Remarks before the 1999 AARP National Legislative Council
Meeting in Washington (DC). "Last year, 61 million Americans had a mobile
phone. They made calls on a service that cost 40 percent less than it did
three years ago. Data traffic eclipsed voice traffic on phone lines, as more
and more Americans of all ages, went on-line. In fact, adults 50 and older
are now the fastest growing group of on-line users. And once on-line,
Americans are finding a virtual cyber-mall. In 1998, 26% of retailers had a
web-site, over three times the amount in 1996, and it is estimated that they
did over $10 billion in sales. In the next few years, electronic commerce is
going to restructure the retailing world and fundamentally change our lives.
The pace of change is quick and at times frightening, especially for those
of us who grew up with one phone company and wrote our term papers on a
typewriter."
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Kennard/spwek904.html
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JOURNALISM
==========
DEDICATED GROUP WORKS TO RETURN NARRATIVE JOURNALISM TO NEWSPAPERS
Issue: Journalism
The serial news story has begun to make a comeback in American newspapers.
In cities around the country journalist are devoting days and weeks to offer
readers installments of eloquently woven narratives. These stories, focused
on individuals and their struggles, tell of everything from military battles
to a quest for a bride. Not all newspaper people, however, view the type of
writing as journalism. Many editors view serial storytelling as a form of
hooky entertainment poising as news. Roy Peter Clark, who teaches at the
Poynter Institute, an educational center for professional journalists, sees
things a little differently. "You could argue that all of television,
including all of TV news, is a serial narrative, a story of a set of
familiar characters return and who we identify with," he said. "Newspapers
have rightly reclaimed" the form.
[SOURCE: New York Times (C9), AUTHOR: Felicity Barringer]
http://www.nytimes.com/yr/mo/day/news/financial/narratives-newspapers-media
.htmlAPERS
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INTERNATIONAL
=============
MICKEY GETS CHINA'S EAR
Issue: Freedom of Speech
China will permit the Walt Disney Co. film "Mulan" to be shown in more than
100 cities beginning this month. Disney was locked out of the Chinese
entertainment market after government officials in 1996 criticized the
company's release of a film sympathetic to the Dalai Lama, the exiled
spiritual leader of Tibet. Disney cited the artistic freedom of director
Martin Scorsese in its decision to stand behind the film, "Kundun." Disney
chairman Michael Eisner met with senior Chinese officials in an effort to
patch up relations. Disney also bought U.S. distribution rights to two
Chinese films. Sources close to Disney also said the firm is exploring plans
to build a Disney theme park in southern China.
[SOURCE: Washington Post (A1), AUTHOR: Michael Laris]
http://www.washingtonpost.com/wp-srv/business/daily/feb99/disney8.htm
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ANTITRUST
=========
US PROBES THE LINKS OF FILM STUDIOS, THEATERS
Issue: Antitrust
A civil investigation demand was made to major studios last week to look into
the "complicated relationship between the Hollywood studios that make and
distribute films and the theater chains that show them." Despite a 1948
anti-trust ruling that demanded studios sell their theater chains, during the
Reagan era the Government began letting these two modes of operation co-exist:
Loews Cineplex, for example, is 51% owned by Sony and 26% owned by Universal.
Sumner Redstone's National Amusements Inc, which operates a US theater
chain, is also the vehicle for Mr. Redstone's 67% stake in Viacom. The studios
that received investigative demands late Thursday are Walt Disney, Viacom's
Paramount Pictures, Sony, News Corp.'s 20th Century Fox, Seagram's Universal
Studios Inc., Time Warner's Warner Bros., and Metro-Goldwyn-Mayer. Regal
Cinemas and Loews Cineplex Entertainment Corp.
are theater chains that received inquiries from the Justice Department. In
accordance with the 1948 ruling, studios book their films one at a time, so
as to prevent "block booking," but many people in the industry believe that
studios and theaters may have informal packaging deals.
[SOURCE: Wall Street Journal (B8), AUTHOR: Bruce Orwell and John Lippman]
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Sorry if we sound a little emotional today...its just these big
anniversaries...the Telecom Act...three wonderful years of employment for
use and hundreds of lawyers around the country: isn't it great?