Communications-related Headlines for 10/30/98

TELEPHONY
Houston Phone Company Fined $1.12M (WP)
F.C.C. Fines Brittan for Phone Slamming (NYT)
Proposed AT&T-TCI Merger Questioned (WP)

TELEVISION
At Networks, Creativity Yields to Commerce (WSJ)
NBC May Face Boycott by Players After Lockout Ends (NYT)

CAMPAIGNS
From Sea to Shining Sea, the TV Campaign Is All Attack Ads, All the
Time (NYT)

ELECTRONIC COMMERCE
Visa Touts Ease of Shopping on Internet (WSJ)

ANTITRUST
In Eighth Day, Microsoft Trial Slows Its Pace (NYT)
Microsoft Presses Court Attack on Rivals (WP)
Gates Videotape Is Delayed Again As Microsoft Trial Plods On and On
(WSJ)

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TELEPHONY
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HOUSTON PHONE COMPANY FINED $1.12M (WP)
F.C.C. FINES BRITTAN FOR PHONE SLAMMING (NYT)
Issue: Telephony
As part of the Federal Communications Commission's efforts to crack down on
companies that switch people's long-distance service without permission,
regulators imposed the second largest "slamming" fine ever. The FCC charge
that Brittian Corp. of Houston, Texas forged forms to authorize a change in
people long-distance phone carrier. "This is the part of the FCC's
continuing effort to take the profit out of slamming,'' said FCC Chairman
Bill Kennard, whose agency has received 16,500 slamming complaints this year.
[SOURCE: Washington Post (WPOline), AUTHOR: Jeannine Aversa (Associated Press)]
http://www.washingtonpost.com/wp-srv/WAPO/19981029/V000236-102998-idx.html
[SOURCE: New York Times (C19), AUTHOR: Bloomburg News]
http://www.nyt.com/

PROPOSED AT&T-TCI MERGER QUESTIONED
Issue: Merger
Protection of competition and protection of consumers were the two main
concerns of companies and consumer groups filing comments with the FCC on
the merger of AT&T and TCI. The plan to provide local telephone and
Internet service using TCI's cable television lines was a key concern. GTE
said, "Consumers will suffer, since they will be deprived of the competitive
choices that otherwise would develop." GTE and other major telephone
companies want assurances that they also will be able to gain access to the
high-speed lines and their use will be governed by traditional phone company
regulations. AT&T and TCI have said they are willing to provide access to
other companies but that they do not want the government to create
regulations forcing it. SBC Communications and Sprint want TCI to sell its
interest in Sprint Spectrum, a condition that TCI has said it will consider.
The National Association of Broadcasters and the Consumer Electronics
Manufacturers Association want TCI's cable system to be forced to carry the
new digital channels of broadcasters, just now coming on line. The FCC must
consider comments as it reviews the merger to assure it is in the "public
interest."
[SOURCE: Washington Post (WP Website), AUTHOR: Jeannine Aversa (Associated
Press)]
http://www.washingtonpost.com/wp-srv/WAPO/19981029/V000320-102998-idx.html

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TELEVISION
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AT NETWORKS, CREATIVITY YIELDS TO COMMERCE
Issue: Television
The glitz and glamour of the network television business is giving way to
serious concerns for the bottom line. The management style of the leaders
of the major networks is likely to be focused on increasing ad sales at
their local O&O stations, developing new businesses and cutting overhead.
Mel Karmazin, elevated to the top post at CBS Corp. this week, is known to
promote increased ad sales at local stations and has been known to be very
involved in monitoring costs, even small ones. Scott Sassa, 39, named this
week to head programming at NBC, has already started seven cable channels.
In addition to the network, Sassa will be helping to program CNBC and MSNBC.
Programming deals, also a concern as network television viewing continues to
decline, are becoming more likely to have some network financial ownership.
ABC's Robert Iger is taking advantage of the Walt Disney Company ownership
to produce programming. Fox also has Fox studio to depend on for
programming outputs. While NBC has lost far more audience than the other
major networks this year, CBS may ultimately be in the worst position
because it ranks last among the Big Four in terms of the younger viewers
that advertisers prefer.
[SOURCE: Wall Street Journal (B1), AUTHOR: Kyle Pope]
http://www.wsj.com/

NBC MAY FACE BOYCOTT BY PLAYERS AFTER LOCKOUT ENDS
Issue:
NBA basketball players are threatening to withhold interviews from NBC and
the Turner Sports cable network for the remainder of the current
professional basketball lockout and during the coming season. Patrick
Ewing, the union president, says the television networks have taken an
active role in "promoting this lockout." The current television contracts
contain guaranteed television rights fees paid from the networks to the NBA
this season, although they also include clauses for the networks to recoup
the losses in subsequent years. The players contend the guarantee makes it
easier for the team owners to continue their lockout and press for player
concessions. Current negotiations include player-conduct issues that will
include the size of fines for players who fail to make themselves available
for mandatory news media sessions, reducing the probability that the threat
to withhold interviews will continue into the season. The NBA has already
cancelled one month of games
[SOURCE: New York Times (C23), AUTHOR: Mike Wise]
http://www.nytimes.com/library/sports/basketball/103098bkn-television.html

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CAMPAIGNS
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FROM SEA TO SHINING SEA, THE TV CAMPAIGN IS ALL ATTACK ADS, ALL THE TIME
Issue: Campaigns
Negativity in campaign ads may be nothing new, but the sustained level of
attack is striking as Election Day nears. At dinner time, on TV sets around
the country people can tune into the this years political messages, which
Sack describes as "Jerry Springer-style vitriol." Many people worry that the
trend in negative advertising will result in a hardened and distrustful
electorate. "The most notable thing to me is how difficult it is this year
to penetrate the public mind, how cynical they are and how they are
skeptical of anything anybody says," said Raymond Strother, a Democratic
consultant
[SOURCE: New York Times (A25), AUTHOR: Kevin Sack]
http://www.nytimes.com/library/politics/103098campaign-tv.html

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ELECTRONIC COMMERCE
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VISA TOUTS EASE OF SHOPPING ON INTERNET
Issue: Electronic Commerce
"E-commerce