April 1999

INTERNET
Electronic Tax Filing Service Crashes at Crunch Time (WP)
Senate Wants FCC to Study Broadband (WP)
Internet Access and the Consumer (Senate)
Internet Providers' Demands On High-Speed
Data Rejected (NYT)
Northern Telecom Plays Down Phone Roots,
Embraces 'I Word' (WSJ)

EDTECH
Pencils Down: End of Paper Test Raises Questions

BROADCASTING
Regulatory Classification of Low-Power Television Licensees (House)

TELEPHONE REGULATION
Truth-in-Billing (NTIA)

JOURNALISM
High-Tech Heads Discuss News Shift (SJ Merc)

INFOTECH
With Free PCs, You Get What You Pay For (WSJ)

EMPLOYMENT/ECONOMICS
America Online Is Facing Challenge Over Free Labor (NYT)
Computer Age Gains Respect of Economists (NYT)

INTERNET

ELECTRONIC TAX FILING SERVICE CRASHES AT CRUNCH TIME
Issue: Technology
People intent on working on their income tax forms online Tuesday got a
surprise when both Intuit's TurboTax and WebTurboTax were unavailable for
about 14 hours. Intuit officials said the company, anticipating heavy use
this week, backed up their preparation services Monday night. As a result
the service was not available until 12:30 PM Tuesday. The popular services
had filed 1.2 million tax returns through their online services as of last
Thursday. Electronic-filing has grown rapidly this year, encouraged by the
Internal Revenue Service. Companies like Intuit have attracted customers by
promising faster refunds.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/turbotax13.htm)

SENATE WANTS FCC TO STUDY BROADBAND
Issue: Broadband
In a Senate hearing yesterday Senator John McCain (R-AZ) rejected calls from
some Internet service providers and America Online for immediate legislation
to stop cable services from offering exclusive high-speed Internet services
via cable lines. Sen. McCain, chairman of the Senate Commerce Committee,
said he would soon introduce legislation with bipartisan backing mandating a
study by the Federal Communications Commission and the Commerce Department's
National Telecommunications and Information Administration. Sen. McCain said
the study would also cover the extent to which high-speed services were
being made available in rural and low income areas. The FCC in February
declined to conduct a formal study of cable broadband services but said it
would continue to monitor the evolving marketplace. Subscribers choosing
Internet services from cable companies do not have a choice of Internet
service providers and must accept service providers owned by the cable
companies. AOL chairman Steve Case told the Senators, "I oppose regulation
of the Internet but the broadband infrastructures on which the Internet
rests -- whether cable, telephone or other -- must be open." However, on
Internet connectivity using cable, Cox Communications president James Robbins
said, "Government regulation will impede its progress, not help its progress."
[SOURCE: Washington Post (Online), AUTHOR: Reuters]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/cableinternet13
.htm)
See also:
COMMUNICATIONS `ARCHITECTURE' DEBATED IN SENATE PANEL
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/fast14.htm)
INTERNET ACCESS AND THE CONSUMER
Issue: Internet Access/Competition
The Senate Commerce Committee held a hearing on how to facilitate the
deployment of faster, higher-speed Internet access services. URL below
offers a link to Chairman John McCain's (R-AZ) opening statement as well PDF
versions of the witness' testimony (except AOL's Steve Case). Witnesses:
Mr. James Robbins, President and COO, Cox Communications, Inc.; Mr. Charles
Brewer, CEO, Mindspring Enterprises, Inc.; Mr. William L. Schrader, Chairman
and CEO, PSINet Inc.; Mr. Solomon Trujillo, President and CEO, US West; and
Mr. Steve Case, Chairman, America Online. Sen McCain said the hearing would
address two questions: 1) what problems might result from the fact that
cable modem service only gives its subscribers *limited* choice in accessing
a high-speed Internet service provider? 2) what problems might result from
the fact that 98 percent of residential consumers have *no* high-speed
Internet access *at all*, and that rural and low-income consumers may get it
significantly later than their urban, higher-income counterparts? Sen
McCain's closing statement reads (in part): The Commerce Committee will meet
again on April 21 to develop more insight on these issues. After that
hearing, I will introduce legislation that will require NTIA, in
collaboration with the FCC, to analyze the facts and the issues involved in
the ongoing deployment of advanced broadband data networks, especially in
rural and low-income areas, and jointly report their findings to us. To
realize our full potential as individuals and as a nation, we must assure
that the benefits of advanced broadband technology are available to
everyone. I intend to do everything I can to make sure that the promise of
advanced telecommunications becomes a reality for all of us.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/hearings/hearings.htm)
See also:
INTERNET PROVIDERS' DEMANDS ON HIGH-SPEED DATA REJECTED
Issue: Broadband/Regulation
On Tuesday at a hearing of Senate Commerce Committee, Senator McCain (R-AZ),
rejected AOL chief executive, Stephen M. Chase's plea to force cable companies
to "open their networks to competitors for high-speed data, or broadband
services." McCain answered the plea instead by announcing a plan to file a
proposal to require the Commerce Department and the Federal Communication
Commission to "analyze the facts and issues on the deployment of broadband
technology." In February the FCC said they didn't want to launch a formal study
but that they would monitor the broadband market. McCain says his biggest
concern is rural communities that may not be attractive to investors. AOL is
concerned that cable companies will leave them behind as consumers move their
telephone wire Internet connections to high-speed connections offered. Senator
Hollings criticized Baby Bells for holding 98 percent of the access and not
implementing the Telecommunications Act of 1996. Solomon D. Trujillo, president
of US West, responded by saying that FCC rules are too "cumbersome" and delay
the process. In addition, competitors aren't developing high-speed access
aren't serving rural areas. William Schrader of PSINet says, an Internet
service provider says that Bell companies say they would move to rural areas if
rules were relaxed. He says this argument doesn't make sense because the
fastest-growing type of telephone connection, digital subscriber lines (DSL)
only for customers 18,000 feet from the central phone office.
[SOURCE: New York Times (C26), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/14broad.html)

NORTHERN TELECOM PLAYS DOWN PHONE ROOTS, EMBRACES 'I WORD'
Issue: Telephony/Advertising
Northern Telecom is touting a new image and a new name. Nortel has launched an
advertising campaign that emphasizes its role in the Internet business rather
than the telephone business. The ads are targeted at decision makers who would
be likely to purchase corporate equipment, but reach a slightly broader
audience. The ads feature a 50-something CEO giving a speech that is really the
lyrics of the Beatle's song, "Come Together." The ads have aired during
"60-minutes," NBA games, and Sunday morning political talk shows. Nortel's ads
are the latest in a trend among phone companies to allude to Internet chic. A
recent ad for long distance company, Quest asks customers to "ride the light,"
instead of picking up the phone. Nortel's use of Internet imagery is warranted,
somewhat. It uses technology called Internet Protocol, (or IP) that, "enables
phone companies to transport voice, video and data over a single network."
Nortel says the mass-marketed ads help build value for the company, despite the
fact that most viewers aren't likely to buy Nortel products. The majority of
Nortel's profits come from selling to telephone companies and businesses.
[SOURCE: Wall Street Journal (B2), AUTHOR: Stephanie N. Mehta]
(http://wsj.com/)
See also:
TAKEOVER SPREE IN NETWORKING
[SOURCE: San Jose Mercury News, AUTHOR: Monua Janah]
(http://www.mercurycenter.com/svtech/news/indepth/docs/cisco041499.htm)
CISCO, ERICSSON AND NORTEL MAKE DEALS TO EXPAND REACH
[SOURCE: New York Times (C2), AUTHOR: Seth Schihesel]
http://www.nytimes.com/library/tech/99/04/biztech/articles/14cisco.html

EDTECH

PENCILS DOWN: END OF PAPER TEST RAISES QUESTIONS
Issue: Education Technology
The Educational Testing Service officials say "no more" to paper-and-pencil
versions of the Graduate Record Examination. US test takers will now have to
take the exam on a computer. As technology improves, ETS officials believe,
computer examinations will be increasingly more sophisticated and better
able to assess skills than paper versions. But the change has sparked
opposition. Opponents say the new tests raise concerns that need to be
addressed, such as whether some people do better on paper versions, and that
the testing service should, at least for now, continue to offer paper as an
option. Last year, when both versions were offered, opponents note about
half the test-takers opted for the paper test. The computer format is also
an issue since it is a "computer-adaptive test," meaning that the computer
adapts its questions to what it perceives to be the test-taker's ability. It
does not allow test takers to skip a question and come back to it or
underline important points in a reading passage. ETS officials say there are
several good reasons to do it on computer: students get their scores
immediately, the computer test does not take as long as the paper test, and
the tests can be given more often. The Graduate Management Admission Test
has been offered only on computer for two years, and major licensing exams
in nursing and architecture are now also paperless. The S.A.T., sponsored by
the College Board, has a pilot project started but has no immediate plans to
move to computers.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/04/cyber/education/14education.html)

BROADCASTING

REGULATORY CLASSIFICATION OF LOW-POWER TELEVISION LICENSEES
Issue: Broadcasting
Hearing summary on H.R. 486, the Community Broadcasters Protection Act
intended to preserve low-power television stations that provide substantial
local programming to small communities throughout the nation. Witnesses at
the hearing: Mr. Roy J. Stewart, Federal Communications Commission; Dr.
Arthur Stamler, WAZT-LPTV; Mr. Michael Sullivan, Community Broadcasters
Association; Mr. Jim May, National Association of Broadcasters; Mr. George
E. DeVault, Holston Valley Broadcasting Corporation; and Mr. Ron Bruno,
WBGN-TV. URL below provides links to Mr. Stewart's and Mr. May's comments as
well as remarks by Rep Thomas Bliley (R-VA), Chairman of the House Commerce
Committee.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/Witnesses?OpenView&StartK
ey=9D2C64D4243BB3F58525674C007B0B9A)

TELEPHONE REGULATION

TRUTH-IN-BILLING
Issue: Telephone Billing
NTIA filed a letter with the FCC in CC Docket No. 98-170 expressing support
for the goals of the Commission's Truth-in-Billing and Billing Format
proceeding: The National Telecommunications and Information Administration
(NTIA) supports the Commission's efforts to ensure that
customers know exactly what they are paying for. This information is
important and necessary to make competition work. Consumers will be better
equipped to make informed buying choices in an increasingly competitive
market if they can easily determine what services they receive, from whom,
and at what price. Equally important, clear and simple bills should help
consumers to detect inappropriate charges resulting from either billing
error or fraud. Consumers, for example, should have sufficient information
to detect slamming practices, involving an unauthorized switch to a new long
distance carrier, and to detect cramming practices, involving charges for
services not ordered or received. We also urge the Commission to expedite
enforcement actions against carriers that engage in slamming and cramming.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/fccfilings/041299billing.htm)

JOURNALISM

HIGH-TECH HEADS DISCUSS NEWS SHIFT
Issue: Content
High-tech leaders Tuesday told newspaper executives they are going to move
their content onto the Internet, make those stories interactive, and improve
in-depth coverage in their print versions. Traditional newspaper journalism
has shifted in recent years to the World Wide Web to compete with Internet
news sources that deliver information as it breaks rather than waiting for
the morning or afternoon edition. "I think you have to realize that the
Internet is a whole new medium, not an extension of what you have been
doing," said Cox Interactive Media vice president Hilary Goodall. The
discussion came in San Francisco at the annual convention of the American
Society of Newspaper Editors.
[SOURCE: San Jose Mercury News, AUTHOR: Martha Mendoza (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/333006l.htm)

INFOTECH

WITH FREE PCS, YOU GET WHAT YOU PAY FOR
Issue: InfoTech
Free PCs aren't really free. As competition surges among the new trend over the
last two months, companies like Gobi, DirectWeb, InterSquid.com and the first
one out -- Free PC are offering a number of deals. InternetSquid, Gobi and
DirectWeb charge a monthly service fee in exchange for a "midrange PC"
(33-megahertz processor, four-gigabyte hard drive and 32 megabytes of memory).
Intersquid and Gobi require customers to sign a lengthy lease of the PC and
charges a hefty cancellation fee. DirectWeb allows month-to-month payment, but
requires a $150 deposit. The companies really differ on their exploitation of
consumer's demographic information. While some customers say it is a way for
people without a lot of money to have a computer, companies may be targeting
higher income folks who are attractive to advertisers. For example, Free PC
charges no monthly fee and cancellation is simple with no charge. But, in order
to get the service customers must fill out a survey, describing income,
hobbies, and other information advertisers like to know. Also, Free-PC selected
its first 10,000 customers, which may be a way to target higher income
customers. DirectWeb offers a 3 tiered service. You can pay $19.95 a month or
$49.95 a month and for different levels of service. Gobi's service is $25.99 a
month with a promise of upgrading customer's technology -- including eventually
replacing standard modems with cable.
[SOURCE: Wall Street Journal (B1), AUTHOR: David P. Hamilton]
(http://wsj.com/)

EMPLOYMENT/ECONOMICS

AMERICA ONLINE IS FACING CHALLENGE OVER FREE LABOR
Issue: Jobs
America Online has long depended on the kindness of volunteer "community
leaders" to perform a range of tasks including answering questions,
supervising chats, and enforcing AOL rules. These volunteers, of which there
currently are 10,000, receive free service as payment for their commitment
of a minimum of four hours of work per week. Seven former AOL volunteers are
now asking the labor department to determine if the company's practices are in
violation of the Federal Fair Labor Standards Act which requires companies
to compensate people for time spent on job-related activities that benefit
the employer.
[SOURCE: New York Times (A16), AUTHOR: Lisa Naploi]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/14aol.html)

COMPUTER AGE GAINS RESPECT OF ECONOMISTS
Issue: Economy
While the impact of the Information Revolution can be felt in workplaces and
classrooms -- from Main Street to Wall Street, scholars are still debating
the effect of technology on the economy. Through the early 1990s
productivity was nearly stagnate, leading top economist to question
technologies contribution to the economy. Starting around 1996, however,
there was a dramatic upswing in productivity growth, which nearly doubled
pace from the rates of the past two decades. Daniel Sichel, an economist at
the Federal Reserve wrote in a recent article that the nation's improved
productivity performance, is "raising the possibility that businesses are
finally reaping the benefits of information technology." The answer to the
question of whether technology is responsible for the nation's recent streak
of high growth and low inflation could have significant policy
ramifications. A problem arises from increasing difficulty in actually
assessing the impact of computer and communications on the output of the
nation's booming service sector. Erik Brynjolfsson, an associate professor
at the MIT Sloan School of Management, explains that the economic value of
speed, quality improvements, customer service and new products are often not
captured by government statistics. "We need a broader definition of output
in this new economy, which goes beyond the industrial-era concept of widgets
coming off the assembly line."
[New York Times (A1), AUTHOR: Steve Lohr]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/14tech.html)

--------------------------------------------------------------

BROADBAND
U.S. Consumers Seek Open Internet On Cable (SJ Merc)
Pulsing with Promise (USA Today)

FILM
Hollywood, Chastened By High Costs, Finds A New Theme: Cheap
(WSJ)

TELEPHONY
Telecom Italia Plan Fails To Win Support (WSJ)
How One Man Used Corporate Affermative Action in Ameritech Deal
(NTY)
Miracle of The Bells: The Simplified Phone Bill (WSJ)

JOURNALISM
Retooling Columbia Journalism Review (NYT)

BROADBAND

U.S. CONSUMERS SEEK OPEN INTERNET ON CABLE
Issue: Cable/Internet
A coalition of consumer and communications advocacy groups Friday sent a
letter to Congress asking cable television companies be prevented from
keeping exclusive control of high-speed Internet services offered over
cable. The effort came only days before a Senate Commerce Committee hearing
on Tuesday on some of the issues raised by cable Internet services. The
Federal Communications Commission looked at the issue recently and
determined it was a nascent industry and should not be regulated at this
time. The complaint by the Consumers Union, Center for Media Education, the
Media Access Project and other groups is that people who access the Internet
over ordinary telephone lines are allowed to choose any Internet service
provider, but the same rule does not apply to cable companies. Customers of
AT&T's high-speed Internet service, for example, must use AtHome Corp. as
their Internet service provider. Analysts are expecting millions will
convert to cable for Internet access as the service becomes more widely
available. Cable companies argue they need the revenues generated from
Internet services to make the price charged for high-speed access more
affordable.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/324637l.htm)

PULSING WITH PROMISE
Issue: Information Technology
Imagine transmitting information wirelessly, but not using radio waves. A
Huntsville, AL company named Time Domain is working to do just that with
radio energy, fired out at 10 million to 40 million pulses a second. The
experimental pulse technology, sometimes called ultra-wide band (UWB), can
digitally handle phone calls, data or video. The pulses carry information
or media as fast as the speediest corporate Internet connection. The pulse
technology has other advantages, including opening up the radio spectrum,
requiring much less power for transmission, and providing excellent message
security. Larry Fullerton has been working on the technology since 1976 and
got his first patent for it in 1987. It has taken off in the few years
because IBM came up with a silicon germanium chip that is great for this
application and costs little and because money has come pouring in. Time
Domain is now building prototypes. Mass-market products are still years
away. [The Web version of the story optimistically was called "Technology
Could Revolutionize Life."]
[SOURCE: USA Today (4/9/99), AUTHOR: Kevin Maney]
(http://www.usatoday.com)

FILM

HOLLYWOOD, CHASTENED BY HIGH COSTS, FINDS A NEW THEME: CHEAP
Issue: Movies
"The film industry is in a funk." With the exception of mega-hits like
"Titanic," the return on films produced has slipped to almost nothing.
According to the Motion Picture Association, the average cost of a film has
doubled since the beginning of the nineties -- from $26 million to $52 million.
The film industry is decreasing the number of films produced as well as cutting
costs, looking for financial partners to help with the bills, and putting a
halt on giving in to demands of highly paid actors, directors and writers.
After the hiring boom between 1990 and 1997 in jobs for actors to
special-effects technicians, layoffs are on the rise. "We're in a recession in
the film business, and it's having a broad impact on virtually every company in
the entertainment business," says Tom Srickler, of talent agency, Endeavor.
Disney has cut its movie budget by $500 million in the past year. According to
Rob Moore, the studio's executive vice president says that instead of trying to
go for more hits, they are trying to make sure that profits get applied to the
bottom line. Also changing the picture -- companies such as Warner and Disney
don't need to solely depend on movie profits as they have television production
arms to compensate. Stars have less leverage than they once had. For example,
Universal won't give Kevin Costner usual $20 billion for his next film, "For
the Love of the Game," He has to see how the film will sell before he gets
paid.
[SOURCE: Wall Street Journal (A1), AUTHOR: Bruce Orwell and John Lippman]
(http://wsj.com/)

TELEPHONY

TELECOM ITALIA PLAN FAILS TO WIN SUPPORT
Issue: International
Telecom Italia shareholders failed to reach quorum at a meeting on Saturday to
vote on a restructuring plan that would have fended off the takeover from
Olivetti that has been threatening for months. An Olivetti company statement
claimed victory: "[Saturday's meeting demonstrates] the lack of interest and
serious doubts in the market as to the measures Telecom's management has
proposed." Franco Bernabe, Chief Executive of Telecom Italia said, of Europe's
most hostile takeover in history, he is not giving up. He is looking for an
investor that will step in to fend off Olivetti. Two likely candidates, SBC
Communications and British Telecommunications, say they are not interested.
Olivetti Chief Executive Officer, Roberto Colaninno said they would have
walked away from the deal if Telecom Italia's restructuring deal had been
approved by shareholders.
[SOURCE: Wall Street Journal (A17), AUTHOR: Deborah Ball and Anita Raghavan]
(http://wsj.com/)

HOW ONE MAN USED CORPORATE AFFIRMATIVE ACTION IN AMERITECH DEAL
Issue: Telephony/Minorities
Georgetown Partners, a Maryland investment firm, may have benefited from
some corporate affirmative action when it received a portion of Ameritech's
wireless business. SBC Communications, which is trying to win FCC approval
for its acquisition of Ameritech, pushed for Georgetown's participation in
the deal. Some say that the Maryland company benefited from SBC's desire to
win favor with FCC chairman William Kennard, who is eager to increase
minority presence in the telecommunications industry. Jesse Jackson, who
also would like to increase minority participation in high-tech industries,
helped SBC and Ameritech develop a list of minority companies to do business
with. When asked whether being black gave him a leg up in the Ameritech
deal, Georgetown's managing director, Chester Davenport, responded: "I think
if I were white, I would own one of these damn telephone companies, OK?"
Davenport said that "all the time and money I've spent here, whatever money
I have now, if I were white...I would have 100 times more money than I have
now, OK?"
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/yr/mo/day/news/financial/davenport-race.html)

MIRACLE OF THE BELLS: THE SIMPLIFIED PHONE BILL
Issue: Telephony/Regulation
The Federal Communication Commission (FCC) is expected to propose guidelines
this week that would require phone companies to have clearer phone bills.
Despite the proliferation of services, taxes and surcharges, bills have not
been overhauled in a while. Even FCC Chairman Kennard admitted having
trouble reading his Bell Atlantic bill. Increasing the urgency for the bill
guidelines
are the 25,000 complaints the FCC received last year for "slamming" -- changing
long-distance price without customer's approval and "cramming" -- a charge for
a service not requested by the consumer. Larry Strickling, FCC chief of telecom
policy says that the new guidelines will require phone companies to clearly
state what services the customer is paying for, what company is providing those
services and whom to contact with questions. Ameritech has already launched a
new "consumer friendly" bill that reduces the number of pages, is printed on a
bigger page with larger print. Bell Atlantic is testing a new bill format as
well. Baby Bell executives say with the advent of competition, tailoring bills
to meet customer needs is a must. Bell South is also planning to revamp its
bill. They plan on using the bills as marketing tool as well. The left margin
of the bill will be used to explain new services and promotions.
[SOURCE: Wall Street Journal (B1), AUTHOR: Kathy Chen]
(http://wsj.com/)

JOURNALISM

RETOOLING COLUMBIA JOURNALISM REVIEW
Issue: Journalism
The publisher of the Columbia Journalism review, since 1988 will step down on
July 1 and David Laventhol, former publisher of the Los Angeles Times, editor
of Newsday and president of Times Mirror will come on. Tom Goldstein, dean
of Columbia University's Graduate School of journalism says this hire is a step
toward shifting the focus of the media criticism magazine. He says that
journalism has changed since the advent of the magaine in 1962 and the
proliferation of popular media criticism on the Internet and magazines like
Brill's Content, has persuaded Columbia Journalism Review to rethink their
magazine. Goldstein says ideas include, a Web presence, change in size and
frequency.
[SOURCE: New York Times (C8), AUTHOR: Alex Kuczynski and Felicity Barringer]
(http://www.nytimes.com/yr/mo/day/news/financial/media-talk.html)

--------------------------------------------------------------

PUBLIC BROADCASTING
National Public Radio to Boost Fees to Stations (ChiTrib)

UNIVERSAL SERVICE
Acceptable Use Policies (NTIA)

MERGERS
Ohio Regulators Give OK to Takeover of Ameritech
by SBC (ChiTrib)
Kennard Response to SBC-Ameritech (FCC)
Lawmaker Speaks Out on Telecom Deal (WP)

JOBS
Bell Canada Workers On Strike (SJM)

INTERNET
Anatomy Of a Web Hoax (WP)
U.S. Still Favors Self-Regulation For Web Privacy (SJ Merc)
Cambodia's First Internet Cafe Opens (SJ Merc)
Gore Site Spawns High-Tech Debate (WP)

TELEVISION
ABC To Rerun Soap Opera On Cable TV (WSJ)

WONK TUTORIALS
Glossary of Telecommunication Terms (NTIA)

NONPROFITS
Nonprofit Groups Ordered To Open Their Books (WSJ)

PUBLIC BROADCASTING

NATIONAL PUBLIC RADIO TO BOOST FEES TO STATIONS
Issue: Public Broadcasting/Radio
Starting October 1, National Public Radio (NPR) will start charging major
market public radio outlets more -- thousands more -- for popular programs
like All Things Considered, Morning Edition and Car Talk. Stations in small,
rural markets will be charged less. Stations will probably be making new
appeals to listeners soon. "We'll tell our listeners about this next week,"
said Torey Malatia, general manager of Chicago's WBEZ-FM. The fee hike for
the Chicago station will be roughly $200,000-$300,000 -- a roughly 20-30%
hike in the station's annual programming budget of $900,000. "This is an
enormous bite," Malatia said. Stations may add extra week's of fundraising
to help handle the costs. Some worry that stations will now be caught in a
catch-22 -- they will have to tie up resources to the popular national shows
that bring in the most listeners, but they will not have funds to develop
local programming that could bring in local underwriting or national
syndication.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones]
(http://chicagotribune.com/)

UNIVERSAL SERVICE

ACCEPTABLE USE POLICIES
Issue: Universal Service/E-Rate
NTIA filed a letter with the FCC in CC Docket No. 96-45 (Federal-State Joint
Board on Universal Service), encouraging the Commission to adopt a
requirement that all schools and libraries that receive Federal E-rate funds
certify that they will implement acceptable use policies before such funds
are awarded to them. [From Letter]: The E-rate program and other educational
technology initiatives are transforming our nation's classrooms and
libraries. Today, 51 percent of public school classrooms are connected to
the Internet, up from 27 percent in 1997 and 3 percent in 1994. As
increasing numbers of children have access to the Internet from their
schools and neighborhood libraries, we need to address the issue of how best
to ensure that these children have positive, age-appropriate, educational
online experiences. With respect to the issue of children's access to online
material that their parents and teachers deem to be inappropriate for them,
the Administration has advocated a user-empowerment approach. We believe
that empowering parents, teachers, and librarians with a wide range of tools
with which they can protect children in their community in a manner
consistent with their values is ultimately the most effective approach and
one that is most compatible with the First Amendment. The Administration
cares deeply about keeping children safe while they engage in online
learning and discovery. Many parents, teachers, and librarians share our
concerns....The Commission can help promote this policy by adopting a
requirement that all schools and libraries that receive Federal
E-rate funds certify that they will implement acceptable use policies before
such funds are awarded to them. In the second cycle of funding, schools and
libraries have filed nearly 36,500 initial applications for E-rate funds.
Ensuring that these schools and libraries have acceptable use policies in
place would be an important improvement in the program and provide a critical
protection for our children.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/fccfilings/acceptableuseltr.htm)

MERGERS

OHIO REGULATORS GIVE OK TO TAKEOVER OF AMERITECH BY SBC
Issue: Mergers
In a 4-1 vote, the Public Utilities Commission of Ohio has approved the
takeover of Ameritech Ohio by SBC. The merger is conditioned there: the
combined company must freeze rates 'til 2002, invest at least $1.32 billion
in Ohio over the next three years, and guarantee job levels for two years
after the merger is complete. Illinois is now the only state still reviewing
the deal; FCC Chairman Bill Kennard expressed some doubts about the deal
last week [see story below]. AT&T opposes the deal saying it will not
promote competition -- the company plans to file for a rehearing within the
next month as allowed by Ohio law. The Illinois Commerce Commission has
scheduled oral arguments on the merger for the end of this month; the ICC is
expected to rule in the matter by June.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/)
See also:
OHIO REGULATOR CLEARS SBC-AMERITECH MERGER
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/318755l.htm)

KENNARD RESPONSE TO SBC-AMERITECH
Issue: Mergers
[Full text] I'm pleased that Ameritech and SBC have decided to participate
in the process outlined in my letter. I look forward to resolving this
matter expeditiously.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/stwek921.html)
NECA reported yesterday:
SBC and Ameritech yesterday accepted the FCC Chairman Kennard's invitation
to discuss whether the agency should impose possible conditions on the
companies' pending merger. Jim Ellis, executive vice president and general
counsel for SBC said: "The fact that the FCC is asking for more information
now -- after eight months of discussions and thousands of pages of
affidavits, white papers and other documents -- is somewhat unusual. But no
one is surprised that possible conditions are being considered." Ellis
added "this merger has been closely examined from every conceivable angle,
and it's passed with flying colors." The merger is still being reviewed by
the FCC and state regulators in Illinois and Ohio.

LAWMAKER SPEAKS OUT ON TELECOM DEAL
Issue: Merger/FCC
The Federal Communications Commission doesn't have the legal authority to
impose conditions on SBC Communications' planned takeover of Ameritech, said
Rep. Billy Tauzin (R-LA) in a Thursday letter to FCC Chairman Bill Kennard.
Rep Tauzin, chairman of the House Commerce telecommunications subcommittee,
said, "I am concerned that your desire to craft conditions on this merger go
beyond the commission's legal authority and raise fundamental questions of
fairness to these merging parties." FCC officials claim they have the
authority to impose conditions on mergers to protect consumers and have
placed conditions on previous mergers. SBC and Ameritech on Wednesday
accepted Kennard's offer to discuss possible conditions with FCC staff. [see
above]
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/WAPO/19990408/V000002-040899-idx.html)

JOBS

BELL CANADA WORKERS ON STRIKE
Issue: Telecommunications/Jobs and Hiring
2,000 members of Communications, Energy and Paperworkers Union that represents
operators and technicians of Bell Canada walked off their jobs on Thursday,
union spokesperson, Gary Cwitco said. Workers who take 911 calls have agreed to
stay on the job until managers take over. Cwitco says Bell Canada is open to
talks on the dispute centered around job security, wages and benefits. The
labor dispute can be traced to Bell Canada's recent joint venture (51%) in
Excell Global Services of Arizona. The union complains that the agreement with
Excell Global Services does not include guarantees that their jobs will be
secure if they are transferred to Excell, and the plan calls for a reduction in
Bell Canada workers' benefits. For a broader ownership picture -- Ameritech,
committed last month to buy a 20% stake in Bell Canada. BCE is
Bell Canada's parent company and its largest telecommunications company.
[SOURCE: San Jose Mercury News, AUTHOR: Robert Melnbardis]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/318757l.htm)

INTERNET

ANATOMY OF A WEB HOAX
Issue: Journalism
On the strength of a single Web page that looked an awful lot like one
produced by Bloomberg News, shares in PairGain Technologies were bid up by
almost a third Wednesday morning. They quickly fell back when the hoax was
exposed. Bloomberg had not put out such a report. Now law enforcement
officials are on the case, trying to track down the perpetrator of the
expensive hoax. For some experts, the incident serves as a useful warning
about he dangers of getting investment advice online; for others, it
underlined the need for a universal system that electronically verifies
whether Web sites are what they claim to be. Michael Bloomberg, founder of
Bloomberg News, said, "You've got to remember that the market for this kind
of news is a bunch of people who are buying and selling stocks based on
total amateurs saying things like, 'It's going to the moon.' The sad thing
is there will be lots more [hoaxes] because all the technology is going in
the direction of making this kind of fraud easier, not more complex. [The
article also includes a primer on spotting bogus Web pages.]
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]
(http://www.washingtonpost.com/wp-srv/business/feed/biztop923655789811.htm)
See also:
FAKE NEWS ACCOUNT ON WEB SITE SENDS STOCK PRICE SOARING
[SOURCE: NYTimes (A1) 4/8/99, AUTHOR: Edward Wyatt]
WEB HOAX SENDS STOCK OF COMPANY SURGING
[SOURCE: Washington Post (E1) 4/8/99, AUTHOR: Los Angeles Times]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-04/08/035l-040899-idx.html)

U.S. STILL FAVORS SELF-REGULATION FOR WEB PRIVACY
Issue: Privacy
A Commerce Department official said industry programs to protect privacy
have not developed as quickly as the Clinton administration anticipated when
it announced it current policy promoting voluntary industry efforts in 1997.
Becky Burr said in a speech Thursday, "We did underestimated the ease with
which private-sector participants could come together." Privacy advocates
and some lawmakers in Congress have said they plan to push for legislation
limiting the ability of Web sites to collect personal data without notifying
the individual. Jason Catlett, president of Junkbusters, said,
"Self-regulation was flawed in concept as well as being an utter failure in
practice." Despite the presence of private sector organizations, such as
TrustE and BBBOnline, which promote disclosure of data-collection practices,
the vast majority of Web sites are not participating in any program.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/070478.htm)

CHANGES IN PHONE SERVICE ARE MIXING UP NET ISSUES IN EUROPE
Issue: International/ Internet
The recent changes in the telecommunications landscape have fueled a
European Internet explosion. "Internet usage has different economics in
Europe, and so do call centers," said Kevin J. Boudreau, who researches
telephony for the Economist Intelligence Unit. "There are greater challenges
because the cost of a local call is tariffed on a per-minute basis, whereas
the same call here is all-you-can-eat." But this is rapidly changing as
competition takes hole of European markets. The are now over a dozen
pan-European carriers that compete in offering Internet and telephone
service, all vying for a role in Europe's Digital Age. "If the consumer
business is two years behind the states, then business-to-business is only
about a year behind," said John Cronin of Ireland's Industrial Development
Agency. Countries like Ireland are scurrying to attract Internet service
providers, build up toll-free help lines and better serve individual
clients, to both promote telephone service and create infrastructure for the
future. "It'll come," says Cronin.
[SOURCE: CyberTimes, AUTHOR: David Wallace]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/09europe.html)

RULING AGAINST DOMAIN NAME SPECULATOR COULD SET PRECEDENT
Issue: Domain
A ruling in a Virginia state court could set a president effecting the legal
status of domain names. A judge has ruled that Network Solutions Inc. (NSI)
-- the sole registrar for the ".com" domain -- must seize the "umbro.com"
domain name from a Canadian company, 3263851 Canada Inc., and turn it over
to Umbro International, seller of soccer equipment. NSI was also forced
to turn over 27 other domain names owned by the Canadian speculator.
The Virginia verdict gives trademark owners an increased ability to obtain
domain names from speculators. Another implication of the case is the
possibility of states taxing domain names as they do with other forms property.
[SOURCE: CyberTimes, AUTHOR: Carl Kaplan]
(http://www.nytimes.com/library/tech/99/04/cyber/cyberlaw/09law.html)

CAMBODIA'S FIRST INTERNET CAFE OPENS
Issue: Internet
If you happen to be in Phnom Penh and need a quick World Wide Web fix, you
are in luck. The Caf

EDTECH
Division Over Internet Learning (SJ Merc)
Internet Courses Earn Poor Marks (Chicago Tribune)
Textbook Publishers Extend Lessons Online (CyberTimes)

INTERNET
Web Sites for White House Race Show Lessons Learned (CyberTimes)
Portals Slow in Future Online Sales (WP)
BMG and Universal Said to Form Internet Venture (NYT)
At Home To Bring Cable Internet Access To Japan In Venture
With Sumitomo (WSJ)

MERGERS
FCC Chief Asking the Right Question (Chicago Tribune)
Kennard's Speed Bump May Reduce Merger Roadkill (Chicago Tribune)
Murdoch to Buy Control of FX, Sports Networks (WP)

TELEPHONY
AT&T To Change A $3 Minimum For Long Distance (WSJ)
Bell Atlantic Is Set To Fine In New York On Long Distance (WSJ)
FCC/REGULATION
Broadcasters Blast New Scrutiny Of Radio (WSJ)
From 'Dr. Dissent' Even A 'Yes' Vote Can Sound Like 'No' (WSJ)

LEGAL ISSUES
Lawsuit Claims MCI Discriminates (WP)

INFOTECH
Intel Joins Race For Home Networks (SJ Merc)

JOURNALISM
Banana Journalism (NYT)

EDTECH

DIVISION OVER INTERNET LEARNING
Issue: Education
A pair of reports being released today question whether a seat in front of a
computer for education through the Internet is as good as a seat in a
college classroom. The College Board warns in its report that Internet
courses could hinder the progress of poor and minority students who arrive
at college with less exposure than white or more-affluent students. Larry F.
Gladieux, a College Board researcher, notes that computers are in 75% of
households with incomes over $75,000, but just under 20% of households
making less than $15,000 have computers or daily access. The second report,
by the Institute for Higher Education Policy, says colleges still lack
enough knowledge about Internet-based education to justify its rapid growth.
Areas that need additional study include information on the high dropout
rate for Internet-based learners, 32% compared with 4% for classroom
students, according to one report. Another area that remains in question is
whether students do better from Internet instruction alone or from a mix of
Internet and classroom learning. At present 750,000 students are involved in
26,000 online courses. Having a wholly online school, Jones International
University of Denver, accredited is one area cited as progress.
[SOURCE: San Jose Mercury News, AUTHOR: Anjetta McQueen]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/310498l.htm)
See also
INTERNET COURSES EARN POOR MARKS
Issue: Ed Tech
Two reports to be released today caution that there is little proof that
online courses are effective. The reports question how courses are
evaluated, their costs, their high drop-out rates, and issues of access to
technology. Larry Gladieux, a senior researcher at the College Board, and
Jamie Merisotis, president of the Institute for Higher Education Policy,
both warn that the "mad dash" to get courses online should be slowed to
allow better thinking and understanding about the effects of such moves.
Observers say the Institute for Higher Education Policy, funded by the
American Federation of Teachers and the National Education Association,
signals the concerns of faculty over job security. "There is a considerable
amount of fear within faculties that on-line education is a way to get rid
of the faculty," said Steve
Crow, executive director of the North Central Association, the accrediting
body for more than 900 colleges and universities. "But it is my own personal
opinion that distance education will not get rid of the faculty. It will,
however, restructure how faculty do their work."
[SOURCE: Chicago Tribune (Sec 1, p.6), AUTHOR: Patrice Jones & Cindy Schreuder]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904070163,00.html)

TEXTBOOK PUBLISHERS EXTEND LESSONS ONLINE
Issue: Publishing/Education
In a new trend in the classrooms involves the use of companion Web sites to
accompany textbook material. An association of science teachers have started
a project, called SciLinks, that uses the Internet to enhance and update
science texts. Publishers contract with the Arlington (VA)-based group, which
then searches the Web for sites that illustrate lessons in the books. Some of
the largest textbook publishers, including Glencoe/McGraw-Hill, Prentice
Hall, and Houghton Mifflin, have been constructing their own Web sites to
supplement printed textbook material. One of the driving forces behind this
trend is publishers' desire to keep books up-to-date in a rapidly changing
world. "It can keep current information alive for students," said William A.
Talkington, president and chief executive officer of Holt, Rinehart and
Winston.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/04/cyber/education/07education.html)

INTERNET

WEB SITES FOR WHITE HOUSE RACE SHOW LESSONS LEARNED
Issue: Democracy and Technology
Unveiled yesterday in Washington (DC), Vice President Al Gore's new campaign
Web site urges voters to "Get Involved." As with many recent candidates,
Vice President Gore apparently has high hopes for the possibilities of
online outreach. Many political analysts view the Internet as an exciting
opportunity for voters to get more involved with candidates and campaigns.
"The Internet is going to reconnect citizens to the process," said Rick
Segal, Steve Forbes' Internet strategist. "We're going to get people in the
game." While there is great hope for the Internet to restore some of the
individual contact with voters that has been lost in the era of television
campaigning, the true power of the medium is still unknown. "We don't know
how well any of these will work until we know how many volunteers they're
getting and how much money they're raising online," said Michael Cornfield
research director of the Democracy Online Project financed by the Pew
Research Center, which plans to measure the effectiveness of campaigning
online. [As part of the Democracy Online Project, the Benton Foundation's
Neustadt Center will be testing the Internet as a tool for civic involvement
among entire communities]
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/07candidate.html)

PORTALS SLOW IN FUTURE ONLINE SALES
Issue: Electronic Commerce
Retailers should expect electronic commerce from Internet entry points,
known as portals, to account for only 20% of online retail revenues by 2002.
A new study by Internet research firm Jupiter Communications says this
figure is up slightly from a projected 18% in 1999. Jupiter says the portal
sites will generate $2.4 billion out of $13 billion in online sales this
year. By 2002 those figures should rise to $8.7 billion and $43.7 billion
respectively. Because of their attraction as destination sites, portals have
cut expensive multi-year "tenancy" deals with online merchants and have
been popular merger targets in recent months. Jupiter's survey, based on
interviews with 36 Internet retailing executives, concludes portals are
helping to expose company sites to a wide audience, but more than 60% of
respondents noted that only one-third of the sales that result can be
attributed to the portal deals. Nearly all of the merchants will reevaluate
their portal deals when renewal time approaches. Bob Davis, president of the
portal Lycos, said, "Virtually anyone who has built a successful retail site
has done it through a portal one way or another."
[SOURCE: Washington Post (Online), AUTHOR: Rachel Beck (Associated Press)]
(http://www.washingtonpost.com/wp-srv/WAPO/19990406/V000336-040699-idx.html)

BMG AND UNIVERSAL SAID TO FORM INTERNET VENTURE
Issue: Internet
The nation's two largest record companies are expected to announce a joint
Internet venture. Universal Music and BMG plan to build out a series of
sites that will promote and sell music. This move further confirms the
Internet's new role in pitching music to the masses, although it only
accounted for 2 percent of CDs sold last year. The deal also sets the stage
for the recording industry to sell music that can be directly downloaded to
people's computers. The industry is currently concerned about people using
MP3 technology to illegally download songs.
[SOURCE: New York Times (C1), AUTHOR: Saul Hansell]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/07net.html)

AT HOME TO BRING CABLE INTERNET ACCESS TO JAPAN IN VENTURE WITH SUMITOMO
Issue: Internet/Cable/International
AT Home plans to announce a deal with two companies to offer cable Internet
access service to Japan. The deal is eased by the TCI/AT&T recent merger. The
deal will set up a subsidiary that will be partly owned by Japanese cable
operator, Jupiter Telecommunications. Jupiter, founded in 1995, is a joint
venture between Sumitomo (of Japan) and Liberty Media, a spinoff of TCI which
owns part of AT Home, which was recently merged with AT&T. "This is a very big
deal from our point of view, since we expect international services to be huge
areas of growth even though right now much of the world is still well behind
the U.S. in terms of cable deployment," says John O'Farrell, At Home's senior
vice president. He says Japan's traditional dial-up Internet use is growing
quickly. At Home reports that Japan's Ministry of Post and Telecommunications
says Japanese Internet use doubled in the past year to reach 11%. Big local
companies dominate the Japanese market, but U.S. companies like America Online,
Excite, and Yahoo have moved into the market.
[SOURCE: Wall Street Journal (B7), AUTHOR: Kara Swisher]
(http://wsj.com/)

MERGERS

FCC CHIEF ASKING THE RIGHT QUESTION
Issue: Mergers
[Editorial] The proposed SBC-Ameritech merger has been making its way
through various regulatory bodies, but in letter sent by Chairman Kennard to
SBC and Ameritech executives on April 1
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9024.html)
, raises the right question: will the merger *promote* competition. "That is
a tougher standard to meet," the editorial concludes, "but it is in the
public interest generally and in the interests of Ameritech consumers
specifically that the case be proved." Hearing officials at the Illinois
Commerce Commission have overruled the concerns of staff and consumer
advocates and recommended the full Commission approve the merger with only
minor conditions. The ICC is expected to rule in June, a FCC schedule for
review is available at
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9024.html#
sch).
[SOURCE: Chicago Tribune (Sec 1, p.12), AUTHOR: Chicago Tribune Editorial
Staff]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904070139,00.html)

KENNARD'S SPEED BUMP MAY REDUCE MERGER ROADKILL
Issue: Mergers
In his column, Greising quickly surveys the recent rash of telecom mergers
and asks, With all these billions floating around, is there just one for me?
and Is this what Congress really meant by deregulation. To the former, the
answer is no -- consumers are not seeing any of this money -- especially not
in lower cable rates or better phone service or readable billing statements
or friendlier operators. To the latter, Greising offers that vertical
integration of communications [this is from the Business section, after all]
is what Congress intended with the 1996 Telecom Act. In the wide-open, post
Telcom Act, though, SBC may have overstepped the bounds with the $60 billion
offer for Ameritech -- and last week, FCC Chairman put on the brakes on the
deal. "The parties will say, well, you cleared the last one, why not this
one?" says former FCC commissioner
Glenn O. Robinson, a law professor at the University of Virginia. "The short
answer is, 'This one is different.' We're talking about an even larger
acquisition with a yet greater threat to competition." Chairman Kennard's
move runs counter to the consolidation we have seen and will probably result
in some guarantee that local markets in SBC and Ameritech service areas are
opened to competition. It also give Illinois regulators a chance to seek
commitments from th combined company before it raises rates, adds new fees
and/or fire thousands. "The $60 billion SBC-Ameritech deal probably
ultimately gets done. But Kennard at least has slowed down the process
enough that they'll have to take into account a new player at the table: the
customers who are the source of all those billions in the first
place."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: David Greising]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904070218,00.html)

MURDOCH TO BUY CONTROL OF FX, SPORTS NETWORKS
Issue: Merger/Cable
News Corp, under Rupert Murdoch, is buying out most of the interest of Liberty
Media and John Malone in the Fox/Liberty Network, a three-year-old joint
venture, for $1.4 billion dollars. The change increases News Corp.'s reach
into the US cable programming market. Murdoch will take over virtually all
of the operations of the network, including Fox Sports Net and entertainment
network FX. News Corp. also takes over the joint venture's 40% interest in
Rainbow Programming, a unit of Cablevision with interests in two New York
sports teams and Madison Square Garden. Liberty Media, formerly a part of
TCI and now a subsidiary of AT&T, will retain its 50% interest in
International Sports Programming Partners.
[SOURCE: Washington Post (E3), AUTHOR: Paul Farhi]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/newscorp7.htm)
See also:
LIBERTY MEDIA TO COMBINE INTERNET ASSETS
Issue: Merger
John Malone has been busy! Liberty Media also plans to transfer its
interactive and Internet assets into TCI Music and rename the combined
operations Liberty Digital, the existing name of Liberty Media's interactive
unit. The new Liberty Digital will be worth about $1 billion.
[SOURCE: Wall Street Journal (B6), AUTHOR: Leslie Cauley]
(http://wsj.com/)
MURDOCH EXPANDS HIS REACH IN SPORTS
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904070216,00.html)

TELEPHONY

AT&T TO CHARGE A $3 MINIMUM FOR LONG DISTANCE
Issue: Long Distance
AT&T says it is setting a $3/month minimum for long distance calls because it
needs to make up for the money it loses on low volume callers. For example,
customers who
make $2.50 in calls will be charged a 50-cent fee.AT&T says it spends that
much just maintaining the account. FCC Chairman William Kennard says this
is not good for people who don't make a lot of long distance calls, but was
thankful for today's "more competitive long-distance marketplace" that
allows customers to choose other companies. AT%T estimates the new minimum
will affect
about 15% of their customers. Gene Kimmelman, co-director of Consumers Union
says this creates an increased divide between low-volume customers who will
pay more and high-volume customers who will get a break. [Guess you just
can't save by not spending anymore]
[SOURCE: Wall Street Journal (B7), AUTHOR: Rebecca Blumenstein]
(http://wsj.com/)
See Also:
AT&T Sets Minimum Monthly $3 Charge
[SOURCE: Washington Post (E1), AUTHOR: Mike Mills]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-04/07/069l-040799-idx.html)

BELL ATLANTIC IS SET TO FILE IN NEW YORK ON LONG DISTANCE
Issue: Long Distance/Regulation
Bell Atlantic has met conditions to file in New York state as a long-distance
carrier. The company is expected to file next week. The application will be
reviewed on the basis of federal mandated checklist that includes proof that
the company is open to competition. Ultimately Bell Atlantic must win the FCC's
approval to be a long distance carrier, which no Bell has yet done. The New
York Public Service Commission has recommended the approval, which will
increase its viability in the eyes of the FCC. Rivals AT&T and MCI WorldCom
say Bell Atlantic has not been fully open to competition. They complained of
difficulties in getting customers to switch over to their service from Bell
Atlantic.
[SOURCE: Wall Street Journal (B7), AUTHOR: Stephanie N. Mehta]
(http://wsj.com/)

FCC/REGULATION

BROADCASTERS BLAST NEW SCRUTINY OF RADIO
Issue: Regulation
Broadcasters are frustrated over the time it is taking the Federal
Communication Commission (FCC) to sign-off on radio-license transactions -- a
result of the rush to consolidate in the radio industry. Since the easing of
ownership mandated by the Telecommunications Act in 1996, radio companies who
could only own four stations in one market and 40 nationwide can now own eight
per market and hundreds across the nation. Last August, the FCC began flagging
proposed deals that could result in a company owning at least half of a
advertising revenue of a market. Broadcasters and media brokers say this policy
is unclear and takes too much time. "Anything remotely related to
concentration, the FCC is studying with a magnifying glass," complains Michael
Bergner media broker. The scrutiny hasn't caused the FCC to reject a deal. But,
critics like, Rep. Billy Tauzin (R-LA) believe the FCC shouldn't be considering
advertising when reviewing radio deals. This should be left to the Justice
Department. Commissioner Harold Furchtgott-Roth says the FCC doesn't have the
authority to consider antitrust issues. Others believe the Justice Department
doesn't have the resources to handle these cases and the FCC should step up
scrutiny in service of public interest. Robert Ratcliffe, deputy chief of the
FCC's Mass Media Bureau says scrutiny will continue -- including reviewing
limits on owning both radio and television stations in one market.
[SOURCE: Wall Street Journal (B6), AUTHOR: Kathy Chen]
(http://wsj.com/)

FROM 'DR. DISSENT' EVEN A 'YES' VOTE CAN SOUND LIKE 'NO'
Issue: Regulation
Federal Communication Commissioner, Furchtgott-Roth, nick-named Dr. Dissent,
has gotten used to being the minority in his votes of no. "He is the
antithesis of the deal maker," says Thomas Tauke, a former GOP congressman and
now chief Washington Lobbyist for Bell Atlantic. In a recent meeting, he
interrupted a California cable-TV operator who was thanking the FCC for
deciding not to adopt regulatory rules, by saying: "You should not be thankful
to this place when it follows the law." Although his job is to regulate the TV
industry, he and his family of six children do not have a TV in their home. He
stands out in more ways than one. In the midst of lawyers he has as PhD in
Economics. He got his job with the FCC by helping to draft portions of the 1996
Telecommunications Act when he was a staffer on the House Commerce Committee.
He is known to read his copy of the Act in meetings and says it is this law
that leads him to stand alone on issues. He says his dissents don't make him
ineffective, they just require the majority to think harder. FCC Chairman
William Kennard recently denied a plea by Furchtgott-Roth for an extension on a
key phone fee vote, because more time would not change his no vote, Chairman
Kennard said. Furchtgott-Roth believes the FCC's power should be limited.
However, lawmakers sympathetic to FCC reform will find no help from the
Republican commissioner, Furchtgott-Roth, who thinks it's inappropriate for the
FCC to advise Congress. Commissioner Furchtgott-Roth voted "no" on the rule
requiring long-distance companies to post their rates on the Internet. He said,
"long-distance companies "don't need any federal mandate to say, 'If you don't
do this, you'll be in trouble.'" He voted not and the rule was adopted 4-1.
[SOURCE: Wall Street Journal (A1), April 6, 1999; AUTHOR: Bryan Gruley]
(http://wsj.com/)

LEGAL ISSUES

LAWSUIT CLAIMS MCI DISCRIMINATES
Issue: Minorities/Legal Issues
Filing a lawsuit against MCI WorldCom in Los Angeles Superior Court on
Tuesday, attorney Raymond Boucher called it "redlining at its worst."
Boucher's client Darren Haylock attempted to make a calling card call last
week to Belize from his mother's home in South Central Los Angeles. MCI
refused to let the call go through. Haylock was able to make the call later
from his home in the San Fernando Valley. The lawsuit claims MCI WorldCom
discriminates by preventing customers from making international calls from
predominantly minority neighborhoods designated as "high fraud" areas. The
lawsuit charges MCI WorldCom with discrimination, deceptive practices, false
advertising, unfair competition, and unfair trade practices. MCI WorldCom
had no comment.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/WAPO/19990407/V000747-040799-idx.html)

INFOTECH

INTEL JOINS RACE FOR HOME NETWORKS
Issue: Technology
Intel Tuesday unveiled its first products aimed at networking the
home. The AnyPoint Home Network products are connectors priced between $79
and $189 that will link PCs and printers together over the home's standard
phone lines. The connectors have the ability to move 1 megabit of
information across standard phone lines, about 20 times more than the
current modem. AnyPoint works with Microsoft's Windows 95 and Windows 98
operating systems and is planning connectors for Apple Computer's Macintosh
OS. This generation of connectors is likely to be superseded by faster
connections built directly into PCs by year's end. Industry analyst Michael
Wolfe said other companies "have introduced similar products in the past but
Intel's the first major networking company to enter the market." Analysts
see potential for tremendous growth in home networking. An Intel competitor,
National Semiconductor, is working with Alation Systems to produce a
wireless communications system that could start appearing in consumer
electronics this fall.
[SOURCE: San Jose Mercury News, AUTHOR: Tom Quinlan]
(http://www.mercurycenter.com/svtech/news/indepth/docs/intel040799.htm)

JOURNALISM

BANANA JOURNALISM
Issue: Journalism
[Editorial] This week, a former Cincinnati Enquirer reporter violated one of
journalists' most important codes. In front of a Cincinnati courtroom, Mike
Gallagher reviled the name of one of his sources. Gallagher was asked to
identify sources that aided him in an investigation of the Chiquita company
that eventually led to his dismissal. The Enquire paid Chiquita a $10
million settlement after it was discovered that Gallagher had illegally
tapped into the company's voice mail system and drew "untrue conclusions"
about the company in his articles. While the authors understand Gallagher's
right to defend himself, they are appalled by his disregard for the all
important contract between reporters and confidential sources, one of
journalism's "sacred bonds".
[SOURCE: New York Times (A22), AUTHOR: New York Times Editorial Staff]
(http://www.nytimes.com/marketplace/)

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