Communications-related Headlines for 11/20/98

DIGITAL TV/BROADCAST REGULATION
FCC Sets Fees for Digital TV (WP)
FCC Eases Affirmative-Action Rules After Court
Struck Down Old Guides (WSJ)

PRIVACY
Data Privacy Guidelines Get a Critical Reception (WP)

ANTITRUST
A Game of Judicial Roulette (WP)
Microsoft Says There's a Boxful of Competition (WP)
Microsoft Accused of Keeping Prices Artificially High (NYT)

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DIGITAL TV/BROADCAST REGULATION
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FCC SETS FEES FOR DIGITAL TV
Issue: Digital TV
Digital television broadcasters will have to pay a 5% fee any non-broadcast
services they provide. Television stations are in the beginning stages of
the transition from current analog technology to digital. The new technology
will allow broadcasters to provide subscription and pay-per-view programming
as well as paging, wireless telephone service, and data services. "This
could, potentially, have a multibillion-dollar impact," said the Media
Access Project's Andrew Schwartzman. Broadcasters had proposed a 2% fee;
public interest advocates had suggested 10%. The FCC's definition of
services subject to fees exempts home shopping and direct-response
informercials. Mr. Schwartzman said this will give a "green light" for
television stations to air more home shopping programs: "What a waste," he
said. In other broadcast-related decisions, the FCC revised its guidelines
on equal employment opportunities and ruled that direct-broadcast satellite
operators must set aside 4% of their channel capacity for noncommercial
educational programming. The NYT also reports the reaction of Gigi Sohn:
"The commission buckled to the broadcasters and will not be giving the
public a darned thing," said Gigi B. Sohn, executive director of the Media
Access Project, a law firm that represents consumer interests. "By finding
that fees do not apply to home shopping, infomercials or direct marketing,
they will be applying this fee to very few services. The result is that the
public will not be compensated for giving broadcasters billions of dollars
of free public spectrum and broadcasters will be unjustly enriched."
[SOURCE: Washington Post (D3), AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/20/057l-112098-idx.html
Some Digital Services Face 5% US Tax
[SOURCE: New York Times (C1), AUTHOR: Stephen Labaton]
http://www.nytimes.com/library/tech/98/11/biztech/articles/20digi.html
FCC Sets Fee Level for Subscription Services Used by Broadcasters on New
Digital TV Channels
Issue: Digital TV
[SOURCE: FCC]
Press Release
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1998/nrmm8037.html
Text of Order http://www.fcc.gov/Bureaus/Mass_Media/Orders/1998/fcc98303.txt
Commission Implements Public Interest Obligations for Direct Broadcast
Satellite Service
Issue: Satellite
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/International/News_Releases/1998/nrin8038.html

FCC EASES AFFIRMATIVE-ACTION RULES AFTER COURT STRUCK DOWN OLD GUIDES
Issue: Jobs/Minorities
The FCC is revising equal employment opportunity rules in the wake of a
federal court decision that invalidated the agency's old rules. Releasing
proposed rules for comment yesterday, the FCC suggesting a new system that
require broadcasters to include women and minorities as candidates for jobs.
"We will not evaluate the results of their efforts. We will not look at who
they hire. We are not going to have a scheme that indirectly pressures
anyone to use racial preferences in hiring," said a FCC official. Although
minorities make up 25% of the US population, they currently make up just
19.9% of broadcast industry employees.
[SOURCE: Wall Street Journal (B6), AUTHOR: Staff Reporter]
http://wsj.com/

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PRIVACY
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DATA PRIVACY GUIDELINES GET A CRITICAL RECEPTION
Issue: Privacy
Last week the Commerce Department made recommendations on how US companies
can comply with Europe's new privacy regulations. But the guidelines are too
vague, legal and privacy experts say, and may put American companies at
risk. "The guidelines may give American companies a false sense of
security," said Fordham Law School privacy expert Joel Reidenbrg. Ohio State
University law professor Peter Swire said, "It's two pages of principles to
cover a modern economy's data flow." Commerce Undersecretary David Aaron
defended the proposal, known as the "International Safe Harbor Privacy
Principles," saying it was developed after months of discussions with
European officials.
[SOURCE: Washington Post (D2), AUTHOR: Robert O'Harrow, Jr]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/20/074l-112098-idx.html

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ANTITRUST
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A GAME OF JUDICIAL ROULETTE
Issue: Antitrust
Even before the Microsoft antitrust case ends, observers are eying the next
round of the process. No matter the decision, the case will be appealed and
a three-judge panel will hear it. The panels are picked at random and then
randomly assigned cases. Party affiliation, attorneys say, is a reliable
predictor of how the judges will rule: judges appointed by Republicans are
likely to favor a large competitor; those appointed by Democrats might push
for greater intervention.
[SOURCE: Washington Post (D1), AUTHOR: David Segal]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/20/053l-112098-idx.html

MICROSOFT SAYS THERE'S A BOXFUL OF COMPETITION
Issue: Antitrust
Microsoft lawyers yesterday pointed to the Linux operating system as
providing plenty of competition for the software giant. Microsoft now
controls 90% of the operating system market, but could quickly be challenged
by Linux, the company argues.
[SOURCE: Washington Post (D1), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/WPlate/1998-11/20/072l-112098-idx.html

MICROSOFT ACCUSED OF KEEPING PRICES ARTIFICIALLY HIGH
Issue: Antitrust
Economist Frederick Warren-Boulton testified at the Microsoft trial that the
software giant has used it market power to keep prices significantly higher
than would be expected if there was competition. The price the company
charges computer makers for the Windows operating system has "increased
significantly over the last two year," Mr. Warren-Boulton said.
[SOURCE: New York Times (C2), AUTHOR: Joel Brinkley and Steve Lohr]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/20soft.html

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...and we are outta here. Have a great weekend. My wife reminded me to say
something out blue, but I forget now. Enjoy the Big Game college football
contest of your choice this weekend.