June 1999

FREE SPEECH
The Info Culture: The High Cost of Speech (ChiTrib)
All 9 Justices Reject Curbs on Casino Ads (WP)
Judge Rejects Online Critic's Efforts to Remain Anonymous (CyberTimes)

EDTECH
Church-state suit could nix plan for Internet in schools (USA)

CABLE
Wiring Smallville USA (B&C)
Cable's Go-Go Years (B&C)
Pumping New Life Into Cable (ChiTrib)
AT&T to Shun Exclusive Pacts for Cable TV (WSJ)
FCC Chief Backs a Hands-Off Approach (ChiTrib)
FCC Weighs Appeal on ISP's, Cable (WP)
AT&T takes on the FCC (B&C)

GOVERNMENT AND TECHNOLOGY
'On line, not in line': When government hits the Web (USA)
Capital Dispatch: Government Pulls Out Of Search Venture (CyberTimes)
Consumer and Investor Access to Information Act of 1999 (House)

JOURNALISM
Gannett Issues Ethics Guidelines for Its Newspapers (ChiTrib)

INTERNET
High-Tech Execs Tell Congress Not To Interfere (SJM)
Capital Dispatch: Nader Takes On ICANN (CyberTimes)

MEDIA & SOCIETY
House GOP to Split Bill on Violence (WP)

FREE SPEECH

THE INFO CULTURE: THE HIGH COST OF SPEECH
Issue: Free Speech
Using the Chicago production of "Spinning into Butter" as a backdrop, Keller
examines free speech, "one of the most complex, challenging ideas ever
formulated by a self-governing society." Two recent trends are examined: 1)
the idea of speech as a constitutional right being supplanted by the idea as
speech as a favor granted by an authority and 2) free speech ain't so free
anymore. On the latter point, Keller mentions how expensive it is to reach a
television audience and how television outlets hold back on
information/policy decisions that benefits them. "We have given corporations
massive 1st Amendment rights as if they were individuals," Gene Kimmelman,
co-director of the Consumers Union, says in the new Bill Moyers documentary
"Free Speech for Sale."
[SOURCE: Chicago Tribune (Sec 5, p.3), AUTHOR: Julia Keller]
(http://chicagotribune.com/leisure/printedition/article/0,2669,SAV-990615008
9,FF.html)

ALL 9 JUSTICES REJECT CURBS ON CASINO ADS
Issue: Advertising
The Supreme Court unanimously voted yesterday against a federal law to limit
broadcast advertising by casinos. The ruling allows television and radio
advertising of casinos in states where gambling is permitted and could
ultimately lead to casino commercials in other states as well. The move is seen
as one that strengthens First Amendment rights while also demonstrating the
court's skepticism of government policies intended to keep potentially harmful
advertising from the public. Writing for the court, Justice John Paul Stevens
said it was up to advertisers, not the government, to assess the value of
accurate and non-misleading information about lawful conduct. The FCC had no
immediate response yesterday, but said it is studying the decision.
[SOURCE: Washington Post (A3), AUTHOR: Joan Biskupic]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/15/090l-061599-idx.html)

JUDGE REJECTS ONLINE CRITIC'S EFFORTS TO REMAIN ANONYMOUS
Issue: Privacy
A Judge in California has allowed a company to issue a subpoena to ascertain
the identity of an anonymous online critic. Xircom, a California modem company,
is seeking the identity of an alleged employee who wrote critical messages
about the company on a Yahoo message board. The writer's lawyers have attempted
to block the subpoena, claiming that it was in violation of their client's
right to free speech. Rejecting this argument, Judge John J. Hunter of Ventura
Superior Court said "there is no right to free speech to defame." While several
companies have recently taken legal steps to unmask anonymous online critics,
this is the first case of a critic fighting back.
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/06/cyber/articles/15identity.html)

EDTECH

CHURCH-STATE SUIT COULD NIX PLAN FOR INTERNET IN SCHOOLS
Issue: Internet
Next year, the U.S. Supreme Court will hear a case regarding whether the public
schools can loan classroom equipment to private and parochial schools. The
appeals court struck down a longstanding federal program, which aids more than
a million children, by stating it violated the First Amendment, which bars
government establishment of religion. The Clinton Administration filed with the
Supreme Court because this ruling could jeopardize the $800 million Internet
program if it is upheld. The question is whether or not the computer being
hooked up to the Web where religious material is disseminated is acceptable to
the court.
[SOURCE: USA Today (p1A.), AUTHOR: Tony Mauro]
(http://www.usatoday.com/)

CABLE

WIRING SMALLVILLE USA
Issue: Cable/Rural America
Michigan's Upper Peninsula, a rugged, remote area with few inhabitants per
square mile, is getting wired with cutting-edge services including high-speed
data, digital cable and -- in the near future -- with cable telephony thanks to
small cable operator Bresnan Communications. "In the UP we have deployed a lot
of fiber, particularly for school interconnects, distance learning, and other
educational applications," says Lenny Higgins, Bresnan Communications' senior
vice president for telephone and data services. "The UP is our technology test
best." As technology advances and the cost for fiber (for fiber-optic cables)
and other related equipment goes down, Bresnan and other small cable operators
realize they can make the same investments that the heavy-weight multiple
system operators can make. The technology allows them to extend their fiber to
increase the number of subscribers while cutting equipment, personnel and
management costs. There are also added advantages to investing in small-town
America: the competition for cable operators is relatively absent, they enjoy
time-to-market advantages, and are the only players capable of offering
one-stop video, data and voice shopping from a single source. Also, the
Internet is relatively new to the area, which gives cable operators "a distinct
edge." Bresnan says some communities have already gone from 17 to 70 channels,
are promoting the cable operators and encouraging further economic development.
[SOURCE: Broadcasting&Cable (p.66), AUTHOR: Price Colman]
(http://www.broadcastingcable.com/)

CABLE'S GO-GO YEARS
Issue: Cable
How long will the "golden years" of cable deals last? Though most deals are
expected to close by the end of summer, analysts look at what the seven
deal-making giants (AT&T, Time Warner, Comcast, Charter, Adelphia, Cablevision
Systems and Cox) will do next. "Once the Cablevisions and Adelphians are gone,
I think the party's over and investors will shift focus from deal speculation
to execution of new services," says David Fiszel of Omega Advisors. "We saw
this happen in radio. We're probably in the seventh inning of consolidation."
Several unusual, but key, negotiations made cable a most active deal market in
the telecommunications industry this year; the 1996 Telecommunications Act
boosted cable's visibility and competitiveness; the entry of notable players
like Microsoft encouraged investments; and the dealing frenzy of 1997 and early
1998 increased transactions. The next step --according to Thomas McCrory,
managing director-cable television at Communications Equity Associates, an
investment banking and brokerage firm-- is for the companies to gather the most
subscribers possible and, in that way, become winners on Wall Street. The seven
will swap and sell the secondary pieces they acquired initially to build in
scale and scope, while others will grow from the remnants. But some analysts
advise that economic challenges abroad (like the Asian and Brazilian
experiences) or industrial shortcomings (ie. if cable companies don't provide
what they offer) could slow down the cable industry's progress.
[SOURCE: Broadcasting&Cable (p.36), AUTHOR: Price Colman]
(http://www.broadcastingcable.com/)

PUMPING NEW LIFE INTO CABLE
Issue: Cable
AT&T Chief Executive Michael Armstrong has seen the future of cable --
interactive television. Wait...did I write 'future' or 'history'?
Interactive TV, video-on-demand, 500 channel...this was the rage of cable
eight years ago. But Mr Armstrong insists that this history is cable's
future -- "a future where television breaks out of the passive mode forever
and adds a dimension of consumer choice and control that, until now, has
been just talk." Online banking, shopping et al...this'll all be done as
America's two most user-friendly devices -- TVs and telephones -- converge.
Orchestrating the merger of AT&T and TCI has done more to accelerate this
convergence than anything, but interactive TV has not been so prominent in
AT&T's earlier announcements. "It's not that (interactive TV) was rolled out
and didn't work so much as the interactive TV rhetoric exceeded capital
expenditures," Armstrong explains. "It never did get rolled out. That's what
is so exciting now, because it will happen, not based on some dream, but
based on hard-nosed business decisions."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99061500
88,FF.html)
See also:
AT&T TO SHUN EXCLUSIVE PACTS FOR CABLE TV
Issue: Cable
Industry analysts were quite worried about the $5 billion recently invested by
Microsoft into AT&T's digital future. The deal is aimed at putting Windows CE
in millions of AT&T's set top boxes. However, in an address to the National
Cable Television Association, Michael Armstrong, AT&T Chairman said he
considered it crucial for different operating systems to "easily co-exist" in
the set-top boxes. He also said, "An open platform is the best way to
stimulate innovation in cable."
[SOURCE: Wall Street Journal (B8), AUTHOR: Leslie Cauley]
(http://wsj.com/)

FCC CHIEF BACKS A HANDS-OFF APPROACH
Issue: Cable
Trust them to the right thing. That's what FCC Chairman Bill Kennard is
saying is the best way to promote telecommunication: trust AT&T and other
companies to do the right thing. "We need to get away from focusing on the
controversy of the day and thinking instead about the end game," Chairman
Kennard said. "Our goal is to get several broadband pipes built that will
compete with each other to carry information to and from customers. Right
now, we have no broadband networks in place. The best way to get pipes in
the ground is to guarantee the industry won't be hampered by regulation. If
we've learned anything from the Internet, it's that it prospered by being
unregulated." AT&T Chief Armstrong seems to agree: "We believe our cable
customers should be able to access any portals and content they want to
reach. But it should be done on the basis of a sound commercial
relationship, not through regulation." "There are market incentives for
openness," Chairman Kennard said, "and we take AT&T at their word. But we
will continue to monitor them, and if anti-competitive issues arise, we can
regulate. It's just that we don't know where the marketplace is taking
things, and we don't want to try to guess. Imagine if we'd try to guess
where the Internet was going and wrote regulations based on our predictions."
[SOURCE: Chicago Tribune (Sec3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99061500
87,FF.html)
See also:
FCC WEIGHS APPEAL ON ISPs, CABLE
Issue: Cable/Internet
Despite AT&T's cable modem service allowing consumers only one choice for an
Internet service provider (ISP), Federal Communications Commission Chairman,
William Kennard, will speak today regarding the lack of evidence pertaining to
cable's ISP monopolization. Even though cable modems are more currently more
popular than digital subscriber lines (DSL's), Kennard considers DSL's as
another way to tap into the Internet. However, George Vradenburg of AOL said,
"in the cable world, consumers don't have a choice. Consumers have to pay
twice" to connect to another ISP other than At Home, which is owned by AT&T.
Currently, AT&T is appealing a decision in Portland, OR which ruled city
governments have the authority to force cable companies to open access to all
ISP's.
[SOURCE: Washington Post (E3), AUTHOR: Shu Shin Luh]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/15/058l-061599-idx.html)

GOVERNMENT AND TECHNOLOGY

CAPITAL DISPATCH: GOVERNMENT PULLS OUT OF SEARCH VENTURE
Issue: Internet/ Access to Government Information
The Department of Commerce has officially withdrawn from a controversial
project in which it was partnered with Northern Lights, an Internet search
company. A fee-based government search engine was developed through the joint
venture, but the Commerce Department received sharp criticism for charging
citizens to search publicly available databases. Northern Lights says that it
will continue to offer the for-profit service, but at a new reduced free
structure. Schools and libraries will be able to access the service for free.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/06/cyber/capital/15capital.html)

ON LINE, NOT IN LINE': WHEN GOVERNMENT HITS THE WEB
Issue: Local Government
We are all familiar with the mammoth lines at the DMV and City Hall. Well, in
several places, this is slowly coming to an end. In Boston, people can pay
their parking tickets via the Web. In Georgia engineers, architects,
accountants and real estate agents can renew their licenses online. In Arizona
and New Mexico, vehicle registrations can be renewed online. These government
changes will save taxpayers' money spent on staff, mail and copying. The local
governments' goals are to make these transactions as secure as possible so
additional service cans be put online. (Hey, maybe we will see fewer cars
getting booted around the city!)
[SOURCE: USA Today (p1A.), AUTHOR: Richard Wolf]
(http://www.usatoday.com/)

CONSUMER AND INVESTOR ACCESS TO INFORMATION ACT OF 1999
Issue: Access to Information
Live Internet broadcast of today's hearing which begins (in theory) at 10
(eastern).
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/eeae8466ba03a2158525677f0
04b4d11/b5705b54987168a58525678a0074187d?OpenDocument)

JOURNALISM

GANNETT ISSUES ETHICS GUIDELINES FOR ITS NEWSPAPERS
Issue: Journalism
because of questionable news-gathering conduct," Phil Currie, Gannett's
senior vice president for news, and Gary Watson, the company's newspaper
division president, said in a joint statement. "Although the vast majority
of journalists operate ethically and in a sincere effort to serve the public
interest, a redefinition at this time to our fundamental values is an
important statement to our readers that they can trust and believe their
local newspapers." Gannett is adopting guidelines that will apply to all 73
of its daily community newspapers -- they are aimed at reinforcing
"In recent years, the credibility of the media has declined -- in part
journalistic tenets of honesty, accuracy, and fair play. The guidelines
forbid reporters from misstating their identities or intentions and try to
restrict unnamed sources to rare cases and "only for important news."
[SOURCE: Chicago Tribune (Sec 3, p.2), AUTHOR: Tim Jones]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99061500
61,FF.html)

INTERNET

HIGH-TECH EXECS TELL CONGRESS NOT TO INTERFERE
Issue: Internet/Economy
On the first day of the Joint Economic Committee's three-day technology summit,
high-tech executives asked the government to stand back allow the country to
reap the benefits of electronic commerce. "Policies hastily put in place today
could be obsolete tomorrow, or worse, ruin this nascent economic engine,'' said
International Business Machines Chairman and Chief Executive Officer Louis
Gerstner. Most companies did agree, however, that the government should have a
role when it come to improving education and giving tax credits for research
and development. "Unless we arrest the wasting decline of our public schools --
and do it now -- America is destined to be an also-ran in the emerging digital
economy,'' said Gerstner, who noted that 350,000 high-tech jobs were currently
going unfilled. Federal Reserve Chairman Alan Greenspan cautioned that the
recent growth in productivity could not continue forever.
[SOURCE: San Jose Mercury News, AUTHOR: Tom Dobbyn (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/543548l.htm)

CAPITAL DISPATCH: NADER TAKES ON ICANN
Issue: Internet
Consumer advocate Ralph Nader is questioning the Internet's administrative
body, the Internet Corporations for Assigned Names and Numbers (ICANN), role in
governing the World Wide Web. Ralph Nader and Jamie Love, director of the
Consumer project on Technology, sent a letter last week to Esther Dyson,
ICANN's chairwomen. They questioned whether ICANN was jumping the gun by
"making substantive policy decisions, before a membership is in place." The
also asked Dyson to elaborate on plans to regulate domains names that are
trademarks and whether ICANN is seeking the ablity to levy fines on holders of
domains.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/06/cyber/capital/15capital.html)

MEDIA AND SOCIETY

HOUSE GOP TO SPLIT BILL ON VIOLENCE
Issue: Media and Society
House Republicans adopted a new legislative strategy yesterday that splits the
juvenile justice measure into two bills: one focusing on youth crime and
culture, the other on gun controls. The GOP approved the new strategy on the
basis that diving up the juvenile justice issue would allow them to get the
bill onto the floor, first of all, and approved, second, according to
Republicans. Rep. John D. Dingell (D-MI) led the bill to oppose gun control.
GOP leaders support the measures to curb juvenile crime and regulate violence
in the media. The issue was hotly debated between, as well as within, the two
parties. The legislation caught Democrats by surprise, and some Republicans
seemed uneasy about defending the recent developments and were uncertain how
legislation would be handled on the floor. The juvenile justice bill is
scheduled for debate on the House floor this week.
[SOURCE: Washington Post (A1), AUTHOR: Eric Pianin and Juliet Eilperin]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/15/053l-061599-idx.html)

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

TELEVISION
AT&T to Carry NBC's Digital-TV Programming (WSJ)
AT&T, NBC add to Olympics Cable Coverage (SJM)
Television-Set Makers Will Meet Deadline On V-Chip,
FCC Says (WSJ)
Media Powerhouses Plan Cable Network for Women (ChiTrib)

INTERNET
FEC Allows Matching Funds for Online Donations (NYT)
FCC Look To Improve Rural Internet (SJM)
AOL Subscribers Can Be Sued in Virginia, Judge Rules (CYBER)
ExploreZip Virus Hitting Internet, Experts Warn (SJM)

MERGERS/COMPETITION
SBC Asks Regulators to Reopen Its Case (ChiTrib)
Development of Competitive Networks (FCC)

WIRELESS/SPECTRUM
Caller-Pays' Bill System On Wireless Phones Backed (SJM)
State of Wireless Competition (FCC)
Greater Spectrum Efficiency (FCC)

ANTITRUST
Professor Fails Test at Microsoft Trial (WP)

TELEVISION

AT&T TO CARRY NBC'S DIGITAL-TV PROGRAMMING
Issue: Broadcast/Cable
How is this for mutual relationships in the digital age: In a deal worth more
than $850 million dollars, AT&T agreed to carry NBC's cable and broadcast
programming and high definition TV signals (Olympics included) through 2008.
Since AT&T recently purchased Tele-Communication Inc. (TCI) and is proposing an
acquisition of MediaOne, they potentially have access to over 60 million homes.
This gives MSNBC (since AT&T will carry the all news station into those
potential homes) the power to compete against its biggest competitor, Time
Warner's CNN. This also gives Microsoft a big win because of their partial
ownership of MSNBC and their $5 billion dollar investment with AT&T for an
agreement to carry Windows CE in 2.5 million of AT&T's TV set top boxes. NBC
applauded the mutual relationship and, of course, this may help AT&T score huge
points with regulators when trying to purchase Media One, as the transmission
of HDTV signals can be "a channel hog" and cable companies have been very
reluctant to get into these mutual relationships.
[SOURCE: Wall Street Journal (B2), AUTHOR: Dean Starkman]
(http://wsj.com/)

AT&T, NBC ADD TO OLYMPICS CABLE COVERAGE
Issue: TV/ Cable/Broadband
NBC and AT&T announced a landmark deal that will result in some cable coverage
of the Olympic Games and give AT&T's cable viewers a chance to see
high-definition television. The agreement gives AT&T, the nation's number two
cable operator, the right to carry NBC's 13 owned and operated TV stations and
its two cable networks until 2009. In turn, AT&T has agreed to upgrade it's
networks to deliver the network's digital signals to cable subscribers. AT&T
will pay more for CNBC and MSNBC -- on which the additional Olympic coverage
will air -- and could pass on the extra cost to subscribers. The deal with NBC
will be a model for AT&T agreements with other networks and affiliates, said Leo
Hindery, head of AT&T cable and Internet operations.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/attnbc061199.htm)

TELEVISION-SET MAKERS WILL MEET DEADLINE ON V-CHIP, FCC SAYS
Issue: V-chip
Believe it or not, the FCC says that makers of television sets may beat the
Government deadline for rolling out televisions with the v-chip, technology
that picks up coding embedded in programs coded by the broadcasters. The
rating system encoded by the broadcasters is
voluntary. Last year the FCC adopted regulations to require television
manufacturers to install v-chips and a task force will work with
broadcasters to make sure the ratings system is utilized.
Chairman Kennard believes that since the recent school shootings, this
technology has become even more important. Look for all televisions sold
after January 1, 2000 to include the v-chip.
[SOURCE: Wall Street Journal (B5A), AUTHOR: Dow Jones Newswires]
(http://wsj.com/)

MEDIA POWERHOUSES PLAN CABLE NETWORK FOR WOMEN
Issue: Cable
Turner Broadcasting System, Time, and Advance Publications (Mademoiselle and
Glamour) will team together to launch a new cable channel aimed at women.
"Women represent the fastest-growing Internet population and a television
audience that remains underserved," said Pat Mitchell, president of CNN
Productions and Time Inc. Television. Mitchell, who will lead the new
venture, said the network will "provide a destination exclusively for smart,
active women seeking relevant content and community." The new venture will
compete with Oxygen, created last year by Geraldine Laybourne, Marcy Carsey
and Oprah Winfrey.
[SOURCE: Chicago Tribune (Sec 3, p.2), AUTHOR: Tim Jones]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9906110217,00.html)

INTERNET

FEC ALLOWS MATCHING FUNDS FOR ONLINE DONATIONS
Issue: Democracy & Technology
In a move that will enable the Web to play a more important role in campaign
fund raising, the Federal Election Commission has decided to let online
donations qualify for federal matching funds. Until now the FEC didn't allow
matching funds to be applied to money raised through the Internet because it
required a written document, like a check, to track the transaction. "It's
really a matter of the political system catching up to the reality that the
Internet has developed over the last five years," said Eric Hauser, spokesman
for the Presidential campaign of former Senator Bill Bradley. The ability to
collect the matching funds on online donations gives the Internet more
legitimacy as part of political campaigns, say analysts. Online fundraising
could
be most critical to smaller campaigns that cannot afford to send mailings or
set up phone banks.
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/06/cyber/articles/11campaign.html)

FCC LOOK TO IMPROVE RURAL INTERNET
Issue: Internet/Access
The Federal Communications Commission plans to examine whether relaxed
regulations on telecommunications would help improve Internet access in rural
areas. FCC Chairman William Kennard also said that the commission will hold
field hearings to assess the concerns of rural residents. Several farm-state
Democratic Senators are urging the FCC to subsidize high-speed Internet
connections in rural communities. "There are hundreds of thousands of jobs at
stake. There's a way of life at stake in rural areas," Sen. Bob Kerrey (D-NE).
[SOURCE: San Jose Mercury News, AUTHOR: Philip Brasher]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/532566l.htm)

AOL SUBSCRIBERS CAN BE SUED IN VIRGINIA, JUDGE RULES
Issue: Internet/Legal Issues
Last month, a Federal District Court judge in Alexandria (VA) ruled that AOL
subscribers who use their AOL accounts to post defamatory messages could be
taken to court in Virginia on a libel suit. Judge T. S. Ellis 3d ruled that
because a Texas defendant has used his AOL account to post such a message, the
message must have been temporarily stored in AOL's Usenet server in Virginia
before it was propagated to other Usenet servers. The judge referenced Virginia
state law which contains a long-arm statue that gives courts power over
out-of-state defendants. Legal experts are divided on the issue, AOL has made
no comment.
[SOURCE: Cybertimes, AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/library/tech/99/06/cyber/cyberlaw/11law.html)

EXPLOREZIP VIRUS HITTING INTERNET, EXPERTS WARN
Issue: Internet
Many of you may need a patch for the most recent virus hitting the Internet
(I am afraid this happened to me early this morning and my colleagues
yesterday). The "worm" or virus is disguised as an e-mail that appears to
be a response to an earlier message which says "I received your e-mail, and
I shall reply ASAP," the ExploreZip message reads, "Till then, take a look
at the zipped docs.'" Experts warn users to delete the message. If you
respond by clicking on the attached file it will launch the virus into your
computer that will destroy Microsoft Outlook, Express and possibly other
e-mail related documents. (Ours destroyed stuff in MS Word, not fun)
Computer security companies Network Associates (http://www.nai.com),
Symantec Corp. (http://symantec.com) and Trend Micro Inc.
(http://www.antivirus.com) are offering virus protection patches that you
can downloaded from their sites to identify and eliminate the virus.
[SOURCE: San Jose Mercury News]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/058165.htm)

MERGERS/COMPETITION

SBC ASKS REGULATORS TO REOPEN ITS CASE
Issue: Mergers
(Wait. Hold on...we were just kidding. Of course we'd like to reopen the
case.) Van reports that the Bells blinked in their staring contest with the
Illinois Commerce Commission. Ameritech and SBC have filed a petition asking
the ICC to reopen the merger approval process so the companies can provide
more evidence. "We've accepted that the commission wanted this information
and would only consider it if we reopen the record," said Selim Bingol, an
SBC spokesman. "So that's what we're doing." Reopening the case could push
the approval process back three months, but SBC has asked that the ICC make
a decision by July 23. But even with the new evidence, opponents still don't
like the deal: "Nothing they've proposed goes far enough to assure that this
merger won't harm competition, push rates higher and jeopardize service
quality," said Martin Cohen, executive director of the Citizens Utility
Board. "These meager improvements they've proposed don't begin to go far
enough to make this deal acceptable to consumers."
[SOURCE: Chicago Tribune (Sec3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9906110148,00.html)

DEVELOPMENT OF COMPETITIVE NETWORKS
Issue: Competition
The Federal Communications Commission initiated a proceeding intended to
facilitate the development of competitive telecommunications networks that
will provide consumers with alternatives to services provided by the
incumbent wireline local exchange carriers (LECs). A major goal of the
Telecommunications Act of 1996 (1996 Act) is the availability of competitive
local telecommunications services, including advanced and innovative
services, to all Americans. The 1996 Act contemplates that competitors will
offer local telecommunications services by reselling the incumbent LECs'
services, using unbundled elements of the incumbent LECs' networks, and
using their own network facilities. Only facilities-based competition,
however, can bring the fullest benefits of competition to consumers and
fully break down the incumbent LECs' dominant position. The adopted Notice
of Proposed Rulemaking (NPRM) and Notice of Inquiry (NOI) furthers the FCC's
ongoing efforts to promote facilities-based local competition by seeking
comment on potential action in several specific areas.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9023.html)

WIRELESS/SPECTRUM

'CALLER-PAYS' BILL SYSTEM ON WIRELESS PHONES BACKED
Issue: Wireless
Cell phone users, you may soon be able to make your friends and family foot the
bill when they call your wireless number. The Federal Communications Commission
is considering rules that would offer a new billing structure to wireless
customers. Currently, mobile phone users must pay for both incoming and
outgoing calls, but, if the FCC plan is approved, users would have the option of
having the individuals who place the calls charged instead. The commission hopes
that a new pricing structure would make wireless more of a viable option for
lower income customers. There's also the hope that the plan would result in
competition between incumbent local carriers and wireless providers, hastening
"the day when our wireless phone might very well be our only phone (and)
wireless is a real substitute for wireline," said Chairman Kennard.
[SOURCE: San Jose Mercury News, AUTHOR: Deborha Kong]
(http://www.mercurycenter.com/svtech/news/indepth/docs/wire061199.htm)
See Also:
CELL PHONE BILLING MAY CHANGE
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/11/061l-061199-idx.html)
FCC OFFERS RULES ON PHONE SERVICE
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/11cell.html)
CALLING PARTY PAYS
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9021.html)

STATE OF WIRELESS COMPETITION
Issue: Wireless
The Federal Communications Commission (FCC) adopted its annual report on the
state of competition in the commercial mobile radio services (CMRS)
marketplace. The Fourth Report evaluates competition using consumer-oriented
categories, regardless of their regulatory classification. The Fourth Report
concludes that competition has increased since the release of last year's
report, especially within the mobile telephony sector of CMRS. This
increased competition has meant lower prices and more choices for American
consumers.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9024.html)

GREATER SPECTRUM EFFICIENCY
Issue: Spectrum/Wireless
The Federal Communications Commission adopted rules which more readily
facilitate the use of "centralized trunking" by private wireless spectrum
users. This action is another example of how the FCC is promoting spectrum
efficiency through consolidation and better coordination of private wireless
spectrum. Centralized trunking is a practical and effective method of
improving spectrum-use efficiency. Efficiencies are realized by a radio
system's using multiple radio channels that are assigned to users by a
computer that either assigns a user the first available channel or places
the user in a queue to receive the next available channel. These revised
rules, which more readily facilitate trunking, are part of the FCC's broader
"Spectrum Refarming" proceeding. Spectrum Refarming began in 1991 when the
FCC, noting that the number of licensees in the Private Land Mobile Radio
(PLMR) services bands had grown dramatically, initiated a proceeding to
consider service rules and technological proposals designed to improve the
efficient use of this spectrum.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9022.html)

ANTITRUST

PROFESSOR FAILS TEST AT MICROSOFT TRIAL
Issue: Antitrust
Edward W. Felten, a Princeton University computer scientist and professor,
failed yesterday to remove an Internet browsing function from Microsoft's
Windows '98 software. Microsoft lawyers were delighted, Judge Thomas Penfield
Jackson was unaffected. Removing the Internet browsing function from Windows
'98 could benefit consumers by saving computer memory, making the machine run
faster, and could help prevent the spread of viruses, said Felten, a
government witness. The government contends that Microsoft's Internet Explorer
browser and its Windows operating system are two different products that should
be distributed separately. By combining the two, the government alleges,
Microsoft is using the market clout of Windows, which runs on 90% of the
world's new personal computers, to illegally dominate the browser market.
Felten was testifying once again to rebut the subsequent testimony of several
Microsoft executives who asserted that the browser and operating system are
inexorably intertwined and that Felten's browser-removal program slows down
Windows. Ultimately, Judge Jackson suggested that he could see a benefit from
allowing consumers to get Windows without a browser, to avoid the spread of
electronic viruses, and denied Microsoft's request for a second demonstration
to affirm its first point.
[SOURCE: Washington Post (E2), AUTHOR: Rajiv Chandrasekaran]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/11/066l-061199-idx.html)
See Also:
MICROSOFT AGAIN DUELS WITH WEB BROWSER WITNESS
[SOURCE: CyberTimes, AUTHOR: Joel Brinkley]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/11soft.html)

--------------------------------------------------------------
...and we're outta here. Have a great weekend.

MEDIA & SOCIETY
Theaters To Require Picture IDs For R-Rated Pictures (WP)
'Guns Don't Kill People, Writers Do' (ChiTrib)
How Do You Define Obscene Violence? Congress Might Try (WSJ)

TELEVISION
The Public and Broadcasting (FCC)
Fox Leaves NAB; Station-Ownership Dispute is Cited (WSJ)

INTERNET
Dell Launches Free European Internet Service (WSJ)
Bush Shows How Not to Handle the Internet,
Experts Say (Cyber)
E-Mail Misuse a University Concern (CyberTimes)

BROADBAND
DSL Could Spark Competition for Pac Bell (SJM)
A Hitch to Marital Web Bliss (NYT)

MERGERS
SBC's Move Ignored, But Tactic Questioned (ChiTrib)
BellSouth Considers Possible Purchase of Long Distance
Firm Quest (WSJ)
France's Vivendi In Polish Deal To Form Big Private
Phone Rival (WSJ)

TELEPHONE
FCC Considering Investigating Minimum
Long-Distance Charges (SJM)
Consumer Information Campaign on Area Codes (FCC)

RADIO
XM Satellite Gets Funding for Plan to Broadcast Signals
for Digital Radio (WSJ)

LEGISLATION
Consumer and Investor Access to Information Act of 1999 (House)

MEDIA & SOCIETY

THEATERS TO REQUIRE PICTURE IDs FOR R-RATED PICTURES
Issue: Media & Society
The movie industry presented to the White House yesterday a plan to limit
adolescents' exposure to violence: Teenagers interested in seeing an R-rated
movie will now have to produce a photo ID first. They say this will limit
teenagers sneaking into theaters where they don't belong, but industry analysts
questioned whether the new policy will be effective in reducing violence or the
number of teenagers who watch violent movies. Nevertheless, the executives, who
represent two-thirds of the nation's movie screens, decided it was important to
redouble efforts to police the rating system [ie. PG-13, R-rated films] in an
environment that is growing increasingly hostile to the movie industry.
[SOURCE: Washington Post (A1), AUTHOR: Charles Babington]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/09/124l-060999-idx.html)
See Also:
LOCAL TEENS SEE WAYS AROUND POLICY
[SOURCE: Washington Post (A11), AUTHOR: Susan Levine and Eric L. Wee]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/09/102l-060999-idx.html)

'GUNS DON'T KILL PEOPLE, WRITERS DO'
Issue: Media & Society
A report on sessions at the annual Writer's Guild Foundation's Words into
Pictures forum. Writers debated the effects their movies have on audiences.
Here are some excerpts: "When I first viewed my own movie with an audience,
and they cheered when a man was shot, I was shocked because I had expected a
completely different reaction. I had hoped for a stunned reaction -- a
realization that the character had just sealed her fate in a very powerful
way. When the audience burst into applause, I was terrified to realize that
I couldn't control how my work was received." Callie Khouri, "Thelma &
Louise" writer) "It's unquestionable that there's a cause and effect between
what goes up on the screen and behavior. I don't want to mess with the 1st
Amendment, and, for that reason, we have to look to ourselves and
acknowledge what effect we have on the world. My core belief as a
screenwriter is that cinema is the campfire which young people gather in the
global village, and I think that when something goes on the screen, it takes
greater importance." (William Mastrosimone, "The Burning Season" and
"Extremities") "I believe that movies have an impact, but, unlike so many of
my friends in Congress, I don't know how much, I don't know where, and I
don't know if there's a connecting link between seeing a movie and going out
to buy a Tech-9 to blow someone's head off. None of the research, and, God
knows, I've read it until my eyes are blurry, has ever made that connecting
link. But movies are powerful, so they must have some kind of impact." (Jack
Valenti, President of the Motion Picture Association of America)
[SOURCE: Chicago Tribune (Sec 5, p.1), AUTHOR: Gary Dretzka]
(http://chicagotribune.com/)

HOW DO YOU DEFINE OBSCENE VIOLENCE? CONGRESS MIGHT TRY
Issue: Legislation
Yesterday, House Judiciary Committee Chairman Henry Hyde (R-IL) introduced
legislation that would make it illegal to sell obscene violent movies, video
games and books to children. The question raises many issues of what defines
"obscene violence." Is "Saving Private Ryan" obscene violence or does it have
historical merit? Was "Donnie Brasco" obscene violence or a man's story about
his life in the mob? Hollywood executive and lobbyist, Jack Valenti, believes
the ratings system he implemented for movies is sufficient and promises an
immediate court challenge. He believes Congress is looking for a quick fix in
the wake of the recent school shootings. However, Rep Hyde said yesterday he
would forgo a vote in the Judiciary Committee and send it directly to the House
floor.
[SOURCE: Wall Street Journal (A1), AUTHOR: Jeffery Taylor]
(http://wsj.com/)

TELEVISION

THE PUBLIC AND BROADCASTING
Issue: Broadcast Regulation
The Mass Media Bureau released the revised version of The Public and
Broadcasting on June 7, 1999. This manual provides a general overview of
broadcast regulation for the public. It has been revised to bring it
up-to-date and also to make it clear and understandable to the general
public. Since 1974, the Commission's rules have required that licensees keep
the manual in their local public files. The most recent version of this
manual, which will be updated periodically by the Bureau, is to be kept in
the local public inspection file of all commercial and noncommercial
broadcast stations "at all times." The full text of this document is
available for inspection and copying during normal business hours in the FCC
Reference Information Center, Room, CY-A257, 445 12th Street, SW,
Washington, DC, 20554. The Public and Broadcasting will also be available on
the World Wide Web at the Commission's Web site
(http://www.fcc.gov/Bureaus/Mass_Media/Factsheets/pubbroad.pdf). For
additional information contact Victoria McCauley at (202)418-2120.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/Public_Notices/da991099.html)

FOX LEAVES NAB; STATION-OWNERSHIP DISPUTE IS CITED
Issue: Broadcasting
Fox Network along with its 22 stations has quit the National Association of
Broadcasters (NAB). The reason: the NAB refuses to lobby on behalf of
broadcasters to lift the cap which sets limits for a single company from
reaching more than 35% of US homes. Local stations feel this would give the
networks too much power. NBC has also threatened to leave the NAB and their
spokesperson, Kassie Canter, said, "We will make a decision on what makes sense
for us." However, in response to Fox pulling out, NAB spokesman Dennis Wharton
said Fox contributes less than 4% of NAB's annual revenue so the impact would
not effect them significantly.
[SOURCE: Wall Street Journal (B9), AUTHOR: Erin White]
(http://wsj.com/)

INTERNET

DELL LAUNCHES FREE EUROPEAN INTERNET SERVICE
Issue: Internet
Dell will provide free Internet access in Germany beginning June 21, in France
within the next month, and to other European countries later this year. Dell
offers software on its Web site to execute this service but will soon
preinstall it on its consumer and small-business computers. The move has
established Dell as the first major computer manufacturer to offer no-charge
Internet services. Dell's greatest competition is expected to come from
phone giants Deutsche Telekom and France Telecom, who already have strong
grips on the Internet market. In the US, Dell's software allows for free
access to AT&T's WorldNet and GTE's Internetworking system, but only for a
limited time.
[SOURCE: Wall Street Journal (B6), AUTHOR: Kevin J. Delaney]
(http://wsj.com/)

BUSH SHOWS HOW NOT TO HANDLE THE INTERNET, EXPERT SAY
Issue: Internet
George W. Bush's Presidential exploratory committee may have ended up in an
online mess after Gov Bush's lawyer filed a complaint with Federal
regulators against a satirical Web site (www.gwbush.com) that parodies its
official site (www.georgewbush.com). More people are now visiting the
satirical Web site. Gov Bush has been drawn into a conflict about limiting
online freedom, and political analysts are studying the ordeal as a case for
campaigns on the wrong way to handle Internet critics. Experts in Internet
political strategy say that the Bush committee made the mistake of hiring
volunteers to manage its Internet component and should either ignore or
promote the site in future campaign advertisements. Bush strategists say the
Internet has little influence on the outcome of an election and see no
problem. "Even though we're the best financed of all the campaigns, we're
not going to spend a lot of money on consultants if we can get volunteers,"
said David Beckwith, a spokesman for the Bush committee. "I'm a little
nonpulsed by a couple of our competitors who think they're going to win by
manipulating the Internet." The Bush committee has asked the Federal
Election Commission to report the Web site as a campaign contribution (which
is required by law). In the meantime, the owners of the site continue to
enjoy publicity and are rallying support against Bush's request.
[SOURCE: CyberTimes (B10), AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/06/cyber/articles/09campaign.html)

E-MAIL MISUSE A UNIVERSITY CONCERN
Issue: Internet
A recent racist email message that reached about 25,000 Stanford University
staff and students highlights the problem of email abuse that has effected
Universities around the country. "The universities are extremely concerned
about this kind of hate-mongering behavior," said Virginia E. Rezmierski, a
computer policy official at the University of Michigan. "We are very
concerned that the technology be used as positively as possible to create
community, not destroy it." While there's no exact number on how many
such offensive messages are sent at our nation's universities, there is a
general sense that such incidents on the rise. "It's an increasing
problem," said Michael J. Gennaco, an assistant U.S. attorney in Los
Angeles. "As people have better access to e-mail, there will be people who
will abuse it." Universities as still developing ways of dealing with this
new form of racist speech. [New form? or new bottle?] It is difficult for
schools, however, to impose disciplinary measures unless the messages have
reached a level that can be considered harassment.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/06/cyber/education/09education.html)

BROADBAND

DSL COULD SPARK COMPETITION FOR PAC BELL
Issue: Broadband
The drive by many companies to enter the high-speed data service market could
also result in more competition for local phone customers. Digital subscriber
line, the broadband technology that turns normal copper phone wires into
high-speed data pipelines, would enable companies to offer bundled voice and
data services at discounted rates. Several would-be competitors to the regional
Bells are working to develop DSL technology with combined voice
and data capacity that can be deployed to homes and offices by the end of the
year. There are still some barriers to the success of companies offering DLS to
compete with other phones and high-speed services. Obstacles include the high
cost of end-user equipment and inconstant quality of voice transmissions.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/dsl060999.htm)

A HITCH TO MARITAL WEB BLISS
Issue: Broadband/Cable
There is already some cause to question the wisdom of the recent marriage of
Internet portal Excite and the cable Internet provider ( at )Home. The combined
company offers both Internet access and content to consumers, putting it in
direct competition with America Online which can be a scary place to be.
While Excite( at )Home is set to be an important contender in the market for
high-speed Internet connections, infighting from the parent companies might
stand in the way of success. "The biggest threat to ( at )Home now is
themselves," said Abhi Chaki, head of broadband consulting at Jupiter
Communications, a market research firm in New York. The cable companies that
bore ( at )Home -- AT&T, the Comcast Corporation and Cox Communications -- have
done much to stunt its growth. One reason for some of ( at )Home's difficulties
may be that cable firms are just not used to moving at Internet speed. As
one ( at )Home board member put it, there is fear that "Left to its own devices,
( at )Home would go and play things up that have negative effect on cable."
[SOURCE: New York Times (C1), AUTHOR: Saul Hansell]
(ttp://www.nytimes.com/library/tech/99/06/biztech/articles/09excite.html)

MERGERS

SBC'S MOVE IGNORED, BUT TACTIC QUESTIONED
Issue: Mergers
"The companies are playing a game of chicken with the commission, and my
money is on the commission," said Marie Spicuzza, an assistant Cook County
(IL) state's attorney. SBC had been asked to reopen its merger application
so it could provide more information. The request came for Illinois Commerce
Commission Chairman Richard Mathias, but the company declined. New promises
made by SBC earlier this week will have to be ignored by Commissioners as
they now will decide on the proposed deal by June 24.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9906090356,00.html)

BELLSOUTH CONSIDERS POSSIBLE PURCHASE OF LONG DISTANCE FIRM QUEST
Issue: Telephone
BellSouth filed with the Securities and Exchange Commission this week
asking for the right to "acquire a control position in, or combine with" the
company Qwest Communications International Inc. Quest has become the fourth
largest long distance company in the US, is building a broadband network, has
teamed with a Dutch telecommunications company to build a European Network and
plans to develop other ventures in Asia, the Pacific and Mexico. Presently,
BellSouth did not obtain a "right of refusal" in this filing which would
obligate Quest to clear bids from other potential companies. And at present,
Bell companies are not allowed to own more than a 10% stake in any
long-distance carrier, and BellSouth already owns 10% of Qwest.
[SOURCE: Wall Street Journal (B9), AUTHOR: Erin White]
(http://wsj.com/)

FRANCE'S VIVENDI IN POLISH DEAL TO FORM BIG PRIVATE PHONE RIVAL
Issue: Merger
Poland's state telephone company will soon face a new private competitor, which
surfaced yesterday when France's Vivendi agreed to buy Polish conglomerate
Elektrim in a $2.5 billion partnership deal. Vivendi is the leader in French
telecommunications, media and environmental services and a leading competitor
to France Telecom. Vivendi agreed to buy a 30% stake in Elektrim
Telekomunikacja Sp.zo.o, Elektrim's telecom subsidiary that encompasses fixed
and mobile telephony. The deal will also assume Elektrim's planned purchases of
a Polish mobile-telephone operator and an international cable and telephone
holding company. Elektrim has been building itself to be a top competitor in
the telephone market in 2003, when Poland's telephone market fully liberalizes.
It sees the partnership as a good move because the deal will allow it to offer
multiple services including Internet and e-commerce. Vivendi also owns 34% of
cable television operator Canal Plus, whose local subsidiary is a top player in
Poland, and recently acquired a stake in British Sky Broadcasting through a
merger with French film group Pathe.
[SOURCE: Wall Street Journal (A23), AUTHOR: Elizabeth Williamson]
(http://wsj.com/)

TELEPHONE

FCC CONSIDERING INVESTIGATING MINIMUM LONG-DISTANCE CHARGES
Issue: Telephony
On Thursday the FCC will decide whether to examine long-distance company's
practice of charging minimum fees to long-distance customers. Within the last
few years, the major long-distance companies have begun to impose monthly fees
that can add up to anywhere from $3-$7, even for customers who have made no
long-distance calls. "It all adds up to...$4, $5 or $6 a month for
customers," said Jane Jackson, chief of the competitive pricing division in
the FCC's common carrier bureau, "and those customers write to us and say 'What
is going on here? I'm paying more.' And the fact is, they are." The
Washington (DC)-based Consumers Union reports that an estimated 10 million to
20 million households spend less than $3/month on interstate long-distance
calls. Phone company officials say that the monthly minimum usage fees are
needed to cover the increased costs of serving customers
[SOURCE: San Jose Mercury News, AUTHOR: Deborah Kong]
(http://www.mercurycenter.com/svtech/news/indepth/docs/long060999.htm)

CONSUMER INFORMATION CAMPAIGN ON AREA CODES
Issue: Telephone
Federal Communications Commission Chairman William E. Kennard launched a
telephone area code consumer information campaign. "People have a lot of
questions about their area codes. This information campaign will answer
consumer questions and minimize confusion as well as explain how the FCC
plans to significantly reduce the frequency of area code changes," Chairman
Kennard said. The Area Code Consumer Information Campaign includes a number
of outreach efforts that will make area code and telephone numbering
information available to consumers. The key parts of the campaign are: 1) A
"Consumer Advisory" on area codes posted on the FCC's Web site
(http://www.fcc.gov/Bureaus/Miscellaneous/Factsheets/areaca.html); 2) A page
of "Frequently Asked Questions" about area codes and telephone numbers, also
posted on the FCC Web site
(http://www.fcc.gov/Bureaus/Common_Carrier/Factsheets/areacode.html). This
question and answer page provides both technical information about the
number crunch and answers to common sense questions like, "Why do some
customers have to dial 10 digits for every call?" 3) Links to the North
American Numbering Plan Administrator Web site
(http://www.fcc.gov/fcc-bin/bye?http://www.nanpa.com/), which provides
information on the status of all area codes. 4) Mailings to local newspapers
nationwide. 5) Joint efforts with FCC officials joining local phone
companies and state, local, and consumer representatives involved with the
area code information effort. For more information on area code issues,
contact the FCC Call Center toll free at 1-888-CALL-FCC.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9039.html)

RADIO

XM SATELLITE GETS FUNDING FOR PLAN TO BROADCAST SIGNALS FOR DIGITAL RADIO
Issue: Radio/Satellites
What do you get when you cross GM, America's largest auto maker, with DirecTV
and the radio giant, Clear Channel: a $250 million dollar capital investment
for XM Satellite Radio Inc. to provide digital-satellite radio broadcasting. GM
has its company Hughes Electronics to offer along with a promise to exclusively
distribute and market the product in some of its vehicles. Clear Channel will
assist with programming and DirecTV has the direct satellite experience. These
companies are joined by several financial investors and will launch the
operations by early 2001.
[SOURCE: Wall Street Journal (B6), AUTHOR: Martha Bannigan]
(http://wsj.com/)

LEGISLATION

CONSUMER AND INVESTOR ACCESS TO INFORMATION ACT OF 1999
Issue: Access to Information
Tuesday, June 15, 1999 10:00 a.m. in 2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on H.R. 1858, the Consumer and Investor Access to Information Act of 1999.
The bill would prohibit commerce in duplicated databases and also addresses
securities market information. See Thomas (thomas.loc.gov) for more
information.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/schedule.htm)

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

Sorry for the early morning survey -- mistakes have been made (by sleepy
Headlines editors).

INTERNET
European Internet Users Call For One-Day Boycott (SJM)
Casting Too Wide a Net? (NYT)
On-Line Race For Political Domains (SJM)
Battle Begun on Internet Ad Blocking (NYT)

E-COMMERCE
Interactive TV Viewers To Make Purchases With Remote Control (SJM)
E-Commerce Report: Television Networks Sell Tie-Ins on the Web (NYT)
Kids Buy Into On-Line Sales As Parents Watch and Worry (USA)

TELECOMMUNICATIONS LANDSCAPE
When the Sound of a Dial Tone Is Ominous (NYT)
Marketplace: Meeting Spawns Thoughts on Future of MCI Worldcom (NYT)
Cisco and Motorola Agree to Become Partners in the Wireless Game

TELEPHONY
Now, For Free You've Got Voice Mail (WSJ)
A Battle Rages Over Humble Collect Call (WSJ)

MEDIA & SOCIETY
Hollywood Examines Its Soul (USA)
Fatal Adventures Bolster Sales of Magazines (NYT)

RADIO
Digital Era Transforms Radio Days (ChiTrib)

JOURNALISM
Narrowing The Electronic News Gulf (NYT)

INTERNET

EUROPEAN INTERNET USERS CALL FOR ONE-DAY BOYCOTT
Issue: International
European Internet users coordinated their efforts for a 24-hour boycott on
Sunday to win a reduction in local telephone costs, including a flat-rate
charge similar to that in the US. The primary goal for Web surfers, who pay by
the minute for their European local calls, was the introduction of unmetered
charges for connections to an Internet service provider using a telephone modem
"to enable everyone who wants to access the Internet without incurring
open-ended costs." Internet users in the following countries participated in
the boycott: Austria, Belgium, Britain, the Czech Republic, Denmark, France,
Greece, Hungary, Italy, Poland, Portugal, Romania, Spain, Sweden and
Switzerland.
[SOURCE: San Jose Mercury News, AUTHOR: AP]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/034291.htm)

CASTING TOO WIDE A NET?
Issue: Internet Infrastructure
With a Government mandate to break up the Internet name registration
monopoly, the interim board of the Internet Corporation for Assigned Names
and Numbers (ICANN) has 1) decided to levy a $1/yr tax on Internet domain
names, 2) planned to charge licensing fees on companies that will disperse
domains, and 3) endorsed controversial recommendations for establishing
rules for resolving disputes over who can and cannot use certain words in
their Internet addresses. Critics say the board is working with powerful
international corporate and government interests to create a top-down
hierarchy. "The risks are that Icann has a little bit of authority but very
little legitimacy," said Bill Whyman, an Internet analyst for the Legg Mason
investment company in Washington. "This is an awkward consensus-building
process. If it pushes too far and causes itself to lose support among key
constituencies, Icann itself can be undercut. Then you have a very bad
situation with no one in control. Then you have a very bad situation for
e-commerce."
[SOURCE: New York Times (C1), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/07ican.html)
See also:
COMPETITION IN THE NAME GAME
[SOURCE: New York Times (C2), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/07name.html)

ON-LINE RACE FOR POLITICAL DOMAINS
Issue: Internet & Politics
Presidential candidate George W. Bush has outpaced Vice President Al Gore in
staking out new territory in the presidential campaign Wild West that is
cyberspace. Last year, a political consultant for Gov Bush locked up dozens of
Internet domain names that could promote or threaten the Bush campaign --
everything from georgewbush.com to dubya.net (for Bush's middle-initial-derived
nickname) and even grabbing four that incorporated names of possible running
mates. Though the buying has infuriated potential running mates, one site
(gwbush.com) which was left wayside, has backfired on Bush. In contrast, the
purportedly techno-savvy Gore campaign, as have most other contenders, left
many of their possible domain names up for grabs. The Gore campaign says it's
content with algore.com and is not willing to pay exorbitant prices (up to six
figures) for sites bearing versions of Gore's name. Unlike Bush, Gore has not
called attention to online detractors whereas Bush has filed a complaint about
gwbush.com, unintentionally increasing more visits to the site, a parody of his
campaign. Honing in on the possibility of future revenues, "cybersquatters"
bought domain names early in hopes of selling them later at a high price. Steve
Forbes has already paid $6,500 earlier this year to buy forbes2000.com from two
graduate students who registered the site. In the end, "everybody's learning
from the Bush campaign," says Michael Cornfield a professor at George
Washington University studying online politics.
[SOURCE: San Jose Mercury News, AUTHOR: Jim Puzzanghera]
(http://www.mercurycenter.com/svtech/news/indepth/docs/polnet060799.htm)

BATTLE BEGUN ON INTERNET AD BLOCKING
Issue: Advertising/Internet
Software that blocks the ads you see on Web pages is now available and
making some Web content providers nervous since it could "challenge the
fundamental structure of the emerging Internet industry," Flynn writes. If
people are tolerant of ads on TV, they'll accept them online, yes? Last
year, advertisers spent $2 billion on Internet advertising -- mostly on
banner ads. Barring the widespread adoption of ad blocking software, that
figure will rise to $4.4 billion this year estimates Jupiter Communications.
[SOURCE: New York Times (C1), AUTHOR: Laurie Flynn]
(http://www.nytimes.com/)

E-COMMERCE

INTERACTIVE TV VIEWERS TO MAKE PURCHASES WITH REMOTE CONTROL
Issue: Television
A new interactive technology called Wink allows viewers to order products
through the cable boxes on top of their TVs. Wink offers enhanced TV viewing in
addition to the ordering capabilities. Users can click their remote control on
icons in the corner of the screen. Up pops little windows that provide extra
information about the program or commercial that's being viewed. Wink, which is
just in a handful of American cities, received a big vote of confidence last
week when Microsoft announced that it would invest $30 million in the company.
Unlike other interactive television systems, Wink is free for consumers.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/033549.htm)

E-COMMERCE REPORT: TELEVISION NETWORKS SELL TIE-INS ON THE WEB
Issue: E-Commerce/Television
Television executives are starting to turn to the Internet to sell goods
featured on their programs. Electronic commerce initiatives are "sort of the
big idea that hasn't been lost on anyone in the TV business," said Frank
Biondi, the former chief executive of Viacom, who is now a principal with
the investment firm Biondi Reiss Capital Management. "It's particularly
important for broadcasters, given their declining viewership, because they
don't have a secondary revenue stream," he said. It may be too early to
predict the potential size of the tie-in market: "Like everyone else, we're
revising our projections every few months," Ms. Sami of NBC said. She said
that in the last 18 months, Internet sales had grown to 12 percent of total
tie-in product sales from 3 percent, as the company put more emphasis on the
Internet and on merchandise sales generally.
[SOURCE: New York Times (C4), AUTHOR:Bob Tedeschi ]
(http://www.nytimes.com/library/tech/99/06/cyber/commerce/07commerce.html)

KIDS BUY INTO ON-LINE SALES AS PARENTS WATCH AND WORRY
Issue: Internet
Parents are concerned with marketers trying to target the booming market of
online teenage and kid buyers. According to market analysts Jupiter
Communications and NFO Worlwide, "Instead of grabbing parents' coat sleeves,
today's digital kids ask parents for credit card numbers -- in place of an
allowance -- and buy products on-line." Jupiter found that 45% of parents are
concerned about efforts to market to youngsters online, up from 17% a year ago.
"On-line players looking to target these younger consumers risk alienating
parents," said analyst Anya Sacharow. In trying to deter marketers away from
kids, Laurie Lipper of the Children's Partnership, an advocacy group in
Washington(DC) said kids can't be treated like buying machines because they
don't have the sophistication to tell the difference between the ads and the
story.
[SOURCE: USA Today (1D), AUTHOR: Elizabeth Weise]
(www.usatoday.com)

TELECOMMUNICATIONS LANDSCAPE

WHEN THE SOUND OF A DIAL TONE IS OMINOUS
Issue: Telecommunications
[Editorial] As demand for fax, cellular and Internet services has soared,
so has investment in telecommunications infrastructure. The basic plan is to
invest a lot of money building a system (like Iridium), get it up and
running and then watch it turn into a money machine as customers pay for
services that cost little to provide. But competition may break the more
expensive systems like Iridium which offer services at premium prices. "In
other words, a dial tone -- or, to be specific, the availability of too many
such tones -- could be the sound that ends the investment boom in
communications technology."
[SOURCE: New York Times (A28), AUTHOR: Floyd Norris, Editorial Observer]
(http://www.nytimes.com/yr/mo/day/editorial/07mon4.html)

MARKETPLACE: MEETING SPAWNS THOUGHTS ON FUTURE OF MCI WORLDCOM
Issue: Mergers/Telecommunications
A look at the changes in the telecommunications over the past two years
through the lens of MCI Worldcom, the #2 long distance provider in the US.
The combined company did not even exist two years ago and is now a major
player in the industry. In a meeting for analysts and investors, the
following themes evolved... 1) AT&T-MCI Rivalry in Decline: AT&T seems
focused on handling coming competition with Baby Bells for residential
customers; MCI Worldcom seems focused not on household phone, but Internet
and overseas expansion. 2) Don't Call it a Takeover: Yeah, right, it was a
"merger," but former Worldcom executives seem to be running the show and
setting the strategic direction. 3) Sprint Speculation Abounds: Many are
thinking that MCI Worldcom will make a bid for Sprint, the #3 long distance
company -- the deal would give MCI Worldcom a national wireless phone network.
[SOURCE: New York Times (C13), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/yr/mo/day/news/financial/mci-marketplace.html)

CISCO AND MOTOROLA AGREE TO BECOME PARTNERS IN THE WIRELESS GAME
Issue: Wireless/Merger
Spectrapoint Wireless will be the name of the new company being formed by Cisco
Systems, the number one maker of data networking equipment and Motorola,
a large cellular phone and equipment company. This new company will be
formed by a deal announced today to acquire a subsidiary of the Robert Bosch
Corp. of Germany, which is developing advanced wireless technology. The unit
Motorola and Cisco are purchasing is located in Texas and is attempting to
develop products transmitting large amounts of data by the "local
multipoint distribution service" (LMDS), a wireless technology used
between fixed antennas. Motorola will own the majority (81%) of Spectrapoint
Wireless, while Cisco's portion will remain relatively small (19%).
The biggest challenge to this new company will be finding customers in the US
as two of the big players, Teligent and Winstar, are already committed to other
corporations.
[SOURCE: New York Times (C16), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/07moto.html)

TELEPHONY

NOW, FOR FREE YOU'VE GOT VOICE MAIL
Issue: Internet/Telephony
Over the past few weeks, new services that offer free voice mail have sprung up
on the Web. At lest three new start up companies have sites that allow
consumers to receive free email, faxes, and voice mail. Customers that sign up
are given a phone number where callers can leave voice messages. Those messages
are then sent as audio attachments to email messages, or can be retrieved by
password at a Web site. Some of the services also allow users to retrieve
messages via the phone. One company even has a text-to-voice translator that
also reads customers their emails over the phone. The service is paid for
through advertising revenue and is free for consumers.
[SOURCE: Wall Street Journal (B1), AUTHOR: Lisa Bransten]
(http://wsj.com/)

A BATTLE RAGES OVER HUMBLE COLLECT CALL
Issue: Competition
As regular long distance phone rates are slashed to rates as low as 10 cents a
minute, the major phone companies are engaged in a bitter battle over the $2
billion collect-call market. 800-number collect-calls bring in a $1.99
connection
fee and up to an additional 39 cents/minute. MCI was the first to
actively peruse the collect-call market and now claims a 40% market share. AT&T
and Sprint have jumped in to offer collect call 800-numbers that they hope will
bring in big revenue from so-called "fat minutes."
[SOURCE: Wall Street Journal (B1), AUTHOR: Rebecca Blumenstein]
(http://wsj.com/)

MEDIA & SOCIETY

HOLLYWOOD EXAMINES ITS SOUL
Issue: Media & Society
In the wake of a federal inquiry into the entertainment's industry's marketing
practice to children, Hollywood screenwriters and producers are making attempts
to analyze the role of Hollywood in the face of youth violence, but stand
divided on the issue. "We who create entertainment must honestly acknowledge
and urgently address the responsibility we all have to eliminate excessive or
gratuitous or unpunished violence. Otherwise, children will continue to kill
children," said one veteran writer. But another added, "I wouldn't know how to
respond to a code or a consensus as to what's responsible and what isn't
acceptable." Others in the industry say the Clinton Administration is straying
perilously close to censorship in calling for the investigation (announced last
Tuesday) into the marketing of violent films, video games and music. "It's a
very interesting dichotomy," said Warren Littlefield, former entertainment
president of NBC and now a producer. "There's a very strong 'don't tread on me'
free speech and 'we are not the problem' line of thinking. At the same time,
there's 'but we have to be part of the solution.'" Entertainment execs have
been bracing themselves by getting lawyers organized, in anticipation of
internal correspondence being subpoenaed by the Department of Justice and the
Federal Trade Commission, which will oversee the 18-month study.
[SOURCE: USA Today (1D), AUTHOR: Claudia Puig]
(www.usatoday.com)

FATAL ADVENTURES BOLSTER SALES OF MAGAZINES
Issue: Magazines
"As a culture, we're bridling at the amount of safety and luxury we have,"
said one writer. "The 1980s was about all this wealth and opulence, and it
seems we're sated with that. Now there's a whole new esthetic of being fit
and adventuresome and everyone has to canoe down something." The writer,
Sebastian Junger is credited in this article with starting the current
infatuation with "adventure tragedy" stories in popular magazines. Lewis
Lapham, the editor of Harper's magazine and a longtime cultural observer of
the magazine industry, says that the fascination with disaster sells
magazines. Witnessing a tragedy befalling another human being "is
traditional tabloid fare" "It sells," Lapham said. "And the glossier
magazines are just taking the tabloid notion and dressing it up in better
product."
[SOURCE: New York Times (C1), AUTHOR: Alex Kuczynski]
(http://www.nytimes.com/yr/mo/day/news/financial/mags-adventure-tragedy.html)

RADIO

DIGITAL ERA TRANSFORMS RADIO DAYS
Issue: Radio
A look at radio's transition to digital technology and the potential of
low-power radio stations to serve communities. Concerning digital --
"Existing receivers will work in the system, because, for a period of time,
we will continue to broadcast in analog," explained William J. Casey,
director of marketing and sales for Lucent Digital Radio, a wholly owned
subsidiary of Lucent Technologies. "The stations want to do it because it
increases fidelity for the consumer; there would be the ability to license
or rent out that space on the sideband to data providers; and it is an
opportunity to provide and enhance public service, such as emergency
broadcasts. "For example, with the digital signal, if, there's a tornado, a
transmitter can send a signal out to a digital radio and literally wake it
up...it turns the radio on at a high volume and issues a warning." Digital
radio may be commercially available as soon as next year. David Bickle,
public relations manager for Lucent's New Ventures Group, said "FM will have
a near-CD-quality sound, and AM will sound like FM does today. At the same
time, you'll have the ability to receive data over the digital signal. A
radio probably will have a video display, which could show the name of the
artist, the name of the song, local traffic or weather."
[SOURCE: Chicago Tribune (Sec 4, p.1), AUTHOR: Gary Dretzka]
(http://chicagotribune.com/textversion/article/0,1492,ART-29734,00.html)

JOURNALISM

NARROWING THE ELECTRONIC NEWS GULF
Issue: Journalism
The continuous news cycles introduced by the Internet and 24 hour cable
news channels have changed how everyone does the news. While newspapers
used to be limited to once-a-day news feast, the Internet has changed many
print publications into an all day buffet of up-to-the-minute wire stories
and more in-depth coverage. Many television news departments have had an
easier time adapting to real-time news because, they "inherited a culture
of putting out news when it happens," said Mark Bernstein, general manager
of CNN Interactive. "Newspapers continue to struggle with what to do if
they get the story at 2 in the afternoon, do they put it on their Web
site?" According to Rich Jaroslavsky, managing editor of The Wall Street
Journal Interactive Edition, the Internet allows newspapers to provide both
speed and substance. "The Web allows newspapers to do both -- to be
competitive on a time basis with television, and to provide perspective as
well."
[SOURCE: New York Times (C14), AUTHOR: Felicity Barringer]
(ttp://www.nytimes.com/library/tech/99/06/biztech/articles/07pape.html)

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