FCC
NYT: F.C.C. to Defer Decision on Phone Deals
WorldCom/MCI: No, We're Not Done Yet
WSJ: Breaking Up BT and MCI Isn't a Done Deal Yet
WSJ: WorldCom Bid Worries Europe's Goliaths
WSJ: The Fiber Baron
WP: The Buzz Over The Bid
TelecomAM: It's Good To Talk: Getting It Out In The Open
On The WorldCom/MCI Deal
TelecomAM: Three-Way Deal? WorldCom Makes Bid Without BT
The Other Merger: Bell Atlantic/NYNEX
FCC: Bell Atlantic/NYNEX Merger
Digital Television
NYT: High-definition television:
Screens reflect back the business interests of
the executive beholder
Advertising
WSJ: IBM to Launch Global Web-Business Blitz
WSJ: Newspaper Publishers Expected to Post Higher
Earnings on Strong Ad Revenue
WSJ: Advertising Is Driving Growth at Internet Firms
America Online
WSJ: America Online Attempts to Increase Ads and
Shopping With New Software
WP: AOL Changes Channels
NYT: America Online Turns to TV as a Model
Internet Content
NYT: World Game Achieves Inventor's Vision of Global Play
NYT: Cartoons On the Web, From an Iconoclast
Journalism
NYT: Seeing Politics, and Mirrors, In the Coverage of Capitol Hill
Publishing
NYT: Black-Owned Bookstores Defend Niche
Old vs. New Media
NYT:
InfoTech
WP: Coming To a TV Near You
NYT: AT&T Cellular Phone Service To Allow Links to the Internet
** FCC **
Title: F.C.C. to Defer Decision on Phone Deals
Source: New York Times, D1, D13
http://www.nytimes.com/yr/mo/day/news/financial/fcc-kennard.html
Author: Seth Schiesel
Issue: FCC
Description: Federal Communications Commission Chairman Reed Hundt
announced that the FCC does not plan to make any decisions on whether to
allow Worldcom's bid for MCI to proceed and a challenge from AT&T to
BellSouth's petition to offer long-distance service in South Carolina until
the Senate approves the new FCC chairman and members. Hundt added that if
William Kennard's, the commission's current general council, confirmation
was delayed he would re-evaluate his position. According to people close to
the commission and on Capitol hill, "Senator Jesse Helms has made it clear
that he will consider trying to block Mr. Kennard's nomination unless Mr.
Kennard agrees to help a businessman named Zebulon Lee secure a radio
license in Asheville, NC."
** WorldCom/MCI: No, We're Not Done Yet **
Title: Breaking Up BT and MCI Isn't a Done Deal Yet
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: Steven Lipin & John Keller
Issue: Mergers
Description: The WorldCom bid for MCI looked like a slam dunk -- but not all
high percentage shots go in. MCI executives will look over the offer and
decide if a WorldCom-MCI company is better than a British Telecom-MCI
company -- and which would be better for stockholders. MCI and BT have been
working together for some time (BT owns 20% of MCI, BT has representation on
the MCI Board of Directors, and Concert Communications is a joint venture of
the two companies). It may take a lot to unravel this almost-marriage,
Title: WorldCom Bid Worries Europe's Goliaths
Source: Wall Street Journal
http://wsj.com/ (A18)
Author: Gautam Naik
Issue: Mergers
Description: If the WorldCom-MCI deal goes through, British Telecom will
lose out on the prized US market. It will also mean than large European
carriers like Deutsche Telekom and France Telecom "will have to face the
greater firepower, marketing savvy, and physical reach of a combined
WorldCom-MCI." Telcos have been preparing for the opening of the European
telecommunications market on January 1 by "striking splashy alliances with
existing carriers and new entrants." WorldCom has taken a low-key approach
-- building as much of its own infrastructure in order to cut costs. The
company is also building the underwater system will the greatest capacity --
the Gemini Cable, a mostly-Internet connection between New York and London.
Working with MCI, WorldCom could add many European corporate clients that it
has not reached yet. [See also "WorldCom's Bid for MCI Puts Global Links
Under Strain" in TelecomAM http://capitol.cappubs.com/am/ ]
Title: The Fiber Baron
Source: Wall Street Journal
http://wsj.com/ (A22)
Author: George Gilder, Seattle's Discovery Institute
Issue: Mergers
Description: WorldCom CEO Bernard Ebbers may be The Fiber Baron of the
Information Age. Gilder credits Mr. Ebbers with the vision to identify the
three key technologies of present-day telecommunications -- fiber, code
division multiple access wireless, and the Internet. Mr. Ebbers has gotten
control of two of them and may be able to parlay MCI's NextWave alliance to
become an international power in wireless, too. Forrester Research of
Cambridge estimates that if Internet traffic continues to grow at its
current pace, voice will fall to less than 1% of the total telecom traffic
by 2004. Other telcos have invested heavily in systems that are good for
voice traffic, but struggle to deliver data. Gilder calls Ebbers "a hero of
the dimensions of Rockefeller and [Michael] Milken."
Title: The Buzz Over The Bid
Source: Washington Business (Wash Tech p.12)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/06/0021-100697-idx.html
Author: Beth Berselli & Mike Mills
Issue: Corporate Communications Merger
Description: Workers at MCI Comm. Corp. expressed surprise and
speculation at the record-breaking bid of $30 billion made by Worldcom.
Concerns over the company's future, and the future of their jobs after the
merger, are running rampant through MCI's offices. Would MCI go with the
conservative Brits, the company
who made the initial bid, or would they go with upstart WorldCom? Given
the price Worldcom was offering, did MCI have a choice? But, according to
recent stock reports, the workers at MCI should have nothing but pride in
their company now. "I feel like the company is appreciated more," one
longtime employee said. Many employees also liked the fact that Worldcom is
a U.S. company. This, they say, would allow the two company cultures to mesh
easier than trying to adapt to the foreign operations of BT. There is even
more speculation over Worldcom's stock-only proposal. Raenell Herring, an
MCI contractor said, "Something funny is going on here. Where is their
money?" There are still others who express concern over another change in
direction that they believe neither MCI or Worldcom is ready for.
Title: It's Good To Talk:
Getting It Out In The Open On The WorldCom/MCI Deal
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Mergers
Description: British Telecom execs have not had strong backing from
shareholders during the bid to takeover MCI. The telecom giant has felt it
is too big to ever be taken over or bossed around. That attitude may hurt
the company which may have a great international strategy, but no one knows
about it. WorldCom shareholders, on the other hand, have turned into
"unquestioning acolytes" of CEO Bernard Ebbers as he uses WorldCom's highly
rated stock to finance deals -- deals that bring new synergies to the
company, raise the value of the stock, and leverage the next deal. The
question now is will MCI stockholders join the Ebbers fan club?
Title: Three-Way Deal? WorldCom Makes Bid Without BT
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Mergers
Description: WorldCom filed a suit against British Telecom and MCI in
Delaware last week, signaling that it may move ahead aggressively on its
takeover bid, regardless of the reactions of MCI and BT. The suit aims at
removing a poison pill designed to protect MCI from a hostile predators and
to remove a $450 million termination fee that would be payable by MCI if it
broke the terms of the agreement with BT.
** The Other Merger: Bell Atlantic/NYNEX **
Title: Bell Atlantic/NYNEX Merger
Source: FCC
http://www.fcc.gov/Speeches/Hundt/spreh758.html
Author: Chairman Reed Hundt
Issue: Mergers
Description: On Friday, FCC Chairman Reed Hundt addressed state regulators
on the Bell Atlantic/NYNEX merger: "It is my pleasure to be here - in my
final days as Chairman of the FCC - to bring together federal and state
regulators to discuss the implications of the Bell Atlantic/Nynex merger and
find ways in which we can work together to foster local competition. It was
in Philadelphia of course that our Federalism was invented. So, this is a
good place to be in order to talk about how to emphasize the virtues of our
complicated jurisdictional arrangements and how to minimize its vices."
** Digital Television **
Title: High-definition television:
Screens reflect back the business interests of the executive beholder
Source: New York Times, D5
http://www.nytimes.com/
Author: Joel Brinkley
Issue: Digital TV
Description: TV manufacturers have been conducting high-definition
television demonstrations for network executives over the past several
months. They are hoping to encourage the networks into broadcasting signals
that are compatible with the 18 formats that are part of the new digital
television system. At the same time, companies like Panasonic "want to make
it clear that they are willing to build equipment in whatever format the
networks prefer." Manufacturers are planning to put HDTVs on sale next year.
** Advertising **
Title: IBM to Launch Global Web-Business Blitz
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Raju Narisetti
Issue: Electronic Commerce/Advertising
Description: Beginning tomorrow, IBM will spend $200 million of an
advertising campaign to convince everyone that the Web is a great place to
do business. IBM is projecting that electronic business will more than
double in the next three years producing $380 million in sales. Mired in a
number of slow growth industries, IBM needs a big chunk of a growing market.
The ads will be part lecture (informing people just what the Internet and
electronic business are) and part sermon.
Title: Newspaper Publishers Expected to Post Higher Earnings on Strong Ad
Revenue
Source: Wall Street Journal
http://wsj.com/ (B7A)
Author: Jill Goldsmith
Issue: Newspapers/Advertising
Description: Newspaper publishers are expected to post better earnings than
during this period last year due to increased advertising revenue. Higher ad
revenue across different media "is a real sign that the advertising market
is white hot. When it's this hot, it doesn't usually pull back too fast,"
said Brian Oakes of Lehman Brothers. In the short-term, newspapers are
expected to do well over the rest of the year -- traditionally the biggest
for advertising. But the price of newsprint continues to soar, putting
additional pressure on the industry.
Title: Advertising Is Driving Growth at Internet Firms
Source: Wall Street Journal
http://wsj.com/ (B11B)
Author: Joelle Tessler
Issue: Internet/Advertising
Description: Internet commerce and advertising are pushing up the earnings
of Internet companies. America Online, for example, is seeing advertising
and electronic commerce revenue grow faster than subscription revenue. Even
companies that are not yet making money are narrowing their losses.
** America Online **
Title: America Online Attempts to Increase Ads and Shopping With New Software
Source: Wall Street Journal
http://wsj.com/ (B14)
Author: Jared Sandberg
Issue: Online Services
Description: Over the next few weeks, America Online will be rolling out new
software aimed at keeping customers online more -- looking at advertising
and making online purchases. To date, AOL's revenue from electronic commerce
still amounts to less than 20%. The new software "puts advertising and
commerce in context," says an AOL executive, blurring efforts to get
customers attention, informing them about products and inducing them to buy.
Title: AOL Changes Channels
Source: Washington Business (Wash Tech p.19)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/06/0131-100697-idx.html
Author: Rajiv Chandrasekaran
Issue: Online Services
Description: AOL plans to revamp its lineup of "channels", and focus on
simplifying and streamlining content in each section. Barry Schuler, the
president for creative development in AOL's network division, said, "This is
no loner a computer application. This is a new medium that has to compete
with television." Revised channels will have a slicker look with more photos
and graphics. Left sides of the screen will have links to specific areas
within a topic. The right side will present connections to constantly
changing selections of 2-3 events. On the button of a channel's main screen
will be links to the Web sites of 3 or 4 of AOL's partners. The move is
crucial now that AOL also has new software to improve navigation of the Web,
it's called "Version 4.0". "We've gone through the bushel basket and we've
selected the things that we think interest people," said Robert Jennings, a
VP for channel programming at AOL. "We're not going to be piling it on."
Title: America Online Turns to TV as a Model
Source: New York Times, D6
http://www.nytimes.com/library/cyber/week/100697aol.html
Author: Steve Lohr
Issue: Internet
Description: America Online will begin to overhaul their service next week
in an effort to attract between two and three million new subscribers over
the upcoming year. The new features are designed to strengthen AOL's role
as a primary gateway into cyberspace and to enable the company to charge
more for online banners and advertising. The services will be modeled after
television-style programming with categories like "good morning", "prime
time" and "late night". The new services will be gradually introduced to
current subscribers starting next Monday.
** Internet **
Title: World Game Achieves Inventor's Vision of Global Play
Source: CyberTimes
http://www.nytimes.com/library/cyber/week/100397netgame.html
Author: David J. Wallace
Issue: Internet Content
Description: More than 30 years ago, Buckminster Fuller envisioned a "World
Game" that would be played simultaneously on computers around the world.
The game would focus on how to solve such world problems as population,
explosion, hunger, disease and the allocation of natural resources. The one
thing that held him back was the inability to link computers together. In
August, a version of this game, called NetWorldGame, was introduced on the
World Wide Web. In this version participants "assume roles as citizens of
various nations and take on responsibilities for solving regional or local
concerns through trade, negotiation or political discussion." Medard Gabel,
executive director of the World Game Institute based in Philadelphia, said
"there's a richer data stream and a chance to play for more than a few
hours. But the downside is that you lose the social interaction. Some of
the solutions may be very good, they may be implementable in the real world.
And they may come from a high school student, a corporate lawyer or an
expert." The game was tested last year in the United Nations, Congress and
several high schools. As opposed to being viewed as just an educational
exercise, the NetWorldGame is "intended to spur real change in the status
quo." You can access the NetWorldGame at:
http://www.worldgame.org/networldgame.
Title: Cartoons On the Web, From an Iconoclast
Source: New York Times, D11
http://www.nytimes.com/library/cyber/week/100697toon.html
Author: Amy Harmon
Issue: Internet Content
Description: Ren and Stimpy are back!!! Not quite, but their originator and
cult hero, John Kricfalusi, is plotting a new cartoon revolution on the
Internet. Initially, the Microsoft Network approached Mr. Kricfalusi's
production company, Spumco, to develop a cartoon to be distributed via their
online service. After Microsoft decided to do away with much of their
entertainment programming, including Kricfalusi's cartoon, he decided to
continue forward with one of the Internet's first original cartoons and make
it available on the Spumco's web site. Kricfalusi aims to generate income
through sponsorship and cartoon paraphernalia while also offering young
cartoonists a site for promoting their work. He hopes that this new use of
the medium will "circumvent the entrenched structure of entertainment
distribution," radically changing the types of entertainment products that
receive airtime and who gets paid for what. Surfers should be able to view
Mr. Kricfalusi's cartoon starting later this month.
** Journalism **
Title: Seeing Politics, and Mirrors, In the Coverage of Capitol Hill
Source: New York Times, D1, D13
http://www.nytimes.com/yr/mo/day/news/financial/capitol-hill-media.html
Author: Melinda Henneberger
Issue: Journalism
Description: There are a growing number of news coverage services emerging
on Capitol Hill. Newspapers, newsletters and online publications are
becoming the latest source of almost instantaneous updates to our nations
policymakers and their assistants. While some services are reaching out to
readers beyond the hill, much of their coverage remains within the political
walls. There is concern by some readers that by keeping these services so
focused these services are creating an even greater level of political
isolation. "It creates this looking-glass world of mirrors reflecting more
and more off one another and less and less of the outside world," said
Representative Charles E. Schumer (D-NY). At the same time, some consumers
believe that the increased focus is positive because it makes it more
difficult for policymakers to "hide pork or plain misbehavior."
** Publishing **
Title: Black-Owned Bookstores Defend Niche
Source: New York Times, D11
http://www.nytimes.com/yr/mo/day/news/financial/black-bookstores.html
Author: Andrea Adelson
Issue: Books
Description: Providing a ray of hope for locally owned bookstore lovers, the
Phenix Information Center, a tiny bookstore in Southern California, is
applying a successful survival strategy against bookselling superstores and
discount chains. In addition to a resurgence of black authors and an
abundance of titles, owners Faron and Joann Roberts have built Phenix into
one of the nation's top-ten black bookstores by regularly attracting
high-profile black writers for speeches and booksignings. When asked how
they obtain such top-notch writers and celebrities, Mrs. Roberts said "we
put together very good proposals." In addition to their top attractions,
the Phenix serves as a "resource for black history for academics and as a
cultural hub" for the surrounding community.
** Old vs. New Media **
Title: Over the Din of New Media, a Voice for the Audio Arts
Source: New York Times, D5
http://www.nytimes.com/
Author: Laurie J. Flynn
Issue: Old vs. New Media
Description: The Audio Engineering Society, the nation's largest
organization of audio professionals, wants to bring more attention to the
world of sound technology. In an era where images are becoming larger and
stronger forces, the AES wants to point out the large role audio plays in
media experiences. "We have at least 50 percent of the multimedia
experience and less than 12 percent of the bandwidth," said Elizabeth Cohen,
president of the AES. This is a challenge given the technical issues
involved with bandwidth and other factors "that affect the quality of sound
as it moves in computer code through the sometimes narrow maze of the Net."
Another current focus in audio standards is to insure that they are "open" -
that is, making sure to allow for many compatible approaches as opposed to
favoring one particular vendor. As stated by Ms. Cohen "standards should be
things that nurture new ideas, not inhibit them."
** InfoTech **
Title: Coming To a TV Near You
Source: Washington Business (Wash Tech p.5)
http://washingtonpost.com/wp-srv/WPlate/1997-10/06/0071-100697-idx.html
Author: Jerry Knight
Issue: Infotech
Description: Circuit City is investing $140 million in Digital Video
Express, the developer of a video disc system that puts movies on CDs and
includes a built-in pay-per-view system. For consumers, this will be a new
and improved format for storing movies. People will be able to pick up a
Divx (rhymes with civics) and pay for 2-day rental period that doesn't start
until the first time the disc is played. After the 48 hours the movie
"self-destructs" and won't play again until you pay for another viewing
period. The Divx player has a built-in modem that will contact the video
store and add the second viewing session to your bill. You may keep the
disc, or throw it away. RCA, Panasonic, and Zenith will have Divx players on
the market by next spring. But, video store owners see Divx as a threat to
their survival: it will cost consumers more, but earn lower profits for
video stores. Other opposition concerns include: another possible "VHS vs.
Beta" war because just-released DVD players can't play Divx discs; the
pricing; privacy due to the modem-billing system; the pay-per-view concept;
and the possible environmental hazard of the discs themselves.
Title: AT&T Cellular Phone Service To Allow Links to the Internet
Source: New York Times, D7
http://www.nytimes.com/library/cyber/week/100697pocketnet.html
Author: John Markoff
Issue: InfoTech
Description: AT&T's Wireless Services Division plans to announce today a new
service called Pocketnet. This service will allow a cellular phone user to
tap into electronic mail and a variety of information sources via the
Internet.
*********
Let's hear it for them O's!