Communications-related Headlines for 1/13/98

Telecommunications
FCC: Rural Ombudsman
NYT: Europe's Phone Deregulation Raises Questions on Internet's Future
WSJ: BellSouth May Appeal Ban On Long-Distance Service
WSJ: Court to Speed Review of Ruling In Local Phone Competition Case
Telecom AM: Rep. Markey Says DOJ Should Move To Reimpose MFJ On Bells

Internet/Technology
NYT: Sun Plans Work Station Overhaul
WSJ: Sun Microsystems Inc. Unveils Workstations With Low Price Tags
WSJ: Yahoo! and MCI Team Up to Launch Co-Branded Internet On-Line
Service
Jobs
NYT: Software Jobs Go Begging, Threatening Technology Boom
WSJ: Computerized Employee-Search Firms Attract Investors

Television
WSJ: Accord With TCI Could Help Microsoft To Extend It Clout in
Digital-TV Filed
Telecom AM: V-Chips Ready To Be Plugged In, 2 Makers Demonstrate At CES
Telecom AM: Broadcasters Make Appearance At CES, Get Few Answers on DTV
Telecom AM: Rabbit Ears Getting More Attention As DTV Technology
Emerges
At CES
Comm.Daily: Moonves Tells TV Critics Rating System 'Is A Nonevent'

Antitrust
NYT: Microsoft Pushes To Oust Judges Advisor
WSJ: Microsoft Asks Judge to Remove Court Expert

** Telecommunications **

Title: Rural Ombudsman
Source: FCC
http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1998/nrmc8003.html
Issue: Telephone Regulation
Description: FCC Chairman William Kennard told a meeting of the Organization
for the Promotion and Advancement of Small Telephone Companies (OPASTCO) at
Fort Lauderdale, Florida, that he hoped to work closely with small telcos in
creating "a competitive telecommunications marketplace that leaves no one
behind and keeps all of America connected." Kennard stated that small and
rural telephone companies "are vitally important" to the country's
telecommunications future. Kennard explained that small telcos "are building
the infrastructure that will keep rural America connected. This means jobs
and economic development can flow to those communities." Kennard added that
the information superhighway "can connect small and rural communities to the
world of commerce and culture, or it can leave them behind. It is the most
important factor in the economic development of our time." [See speech, Keep
America Connected, at http://www.fcc.gov/Speeches/Kennard/spwek801.html]

Title: Europe's Phone Deregulation Raises Questions on Internet's Future
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/euro/011398euro.html
Author: Bruno Giussani
Issue: Telecommunications
Description: On January 1, most European countries opened up their telephone
markets to competition, a move that has ended decades of state monopoly.
One of the questions being raised is how will this affect Internet users? In
the short run, "deregulation will not significantly reduce the cost of using
the Internet in Europe," said Jonathon Barton, head of the Information
Society Observatory at the London School of Economics. "It is too much too
expect that the general cost of a local phone call in Europe will fall
soon," he added. In the past, the Internet has had a much lower penetration
due to the price of local calls and tightly regulated monopolies. But now,
"Deregulation will drive a wave of telecom companies' consolidations,
mergers and joint-ventures at an unprecedented rate across Europe," said
David Petraitis, a senior manager in information systems risk management at
Price Waterhouse in Geneva. This pressure to build pan-European networks
will assist in making interconnectivity much faster and cheaper.

Title: BellSouth May Appeal Ban On Long-Distance Service
Source: Wall Street Journal (A6)
http://wsj.com/
Issue: Long Distance
Description: BellSouth is expected to appeal a gov't. decision that prevents
the local carrier from offering long-distance service in South Carolina.
They said the appeal seeks further clarification of the requirements it must
meet in order to gain entry to the long-distance market. Under the telecom
law of 1996, Bell phone companies can offer long-distance service only after
they prove that their local territories are open to competition. Walter
Alford, BellSouth's general counsel, said the appeal also argues that the
FCC's order is unconstitutional because it treats Bell companies differently
than other local carriers that can offer long-distance services, such as GTE.

Title: Court to Speed Review of Ruling In Local Phone Competition Case
Source: Wall Street Journal (B17)
http://wsj.com/
Author: Edward Felsenthal
Issue: Competition
Description: The Supreme Court will speed its review of an appeal of a
ruling that sharply limits federal regulatory effort to set terms on prices
and connections to local phone networks. The ruling threw out the FCC's
rules governing how local phone companies must open their networks to
rivals. The 3-judge panel said the FCC trampled on states' rights to carry
out key elements of the Telecom Act of 1996. The FCC rules are known as
"interconnection" rules because they involve the linking of long-distance
carriers to local phone networks.

Title: Rep. Markey Says DOJ Should Move To Reimpose MFJ On Bells
Source: Telecom AM---jan. 13, 1998
http://www.telecommunications.com/am/
Issue: Telephone Regulation
Description: The ranking democrat on the House Telecom Subcommittee asked
the DOJ to "take a closer look at allegations of antitrust abuse and
monopoly power within SBC's local market." Rep. Edward Markey said SBC has
broken its "quid pro quo" with Congress and the DOJ should move to reinstate
the Modified Final Judgement (MFJ) covering the Bell companies if the
decision by a Wichita Falls, Texas judge ruling that part of the Telecom
Act unconstitutional is upheld. Markey said the Wichita Falls lawsuit
itself "is ample evidence of [SBC's] clear intent to use every legal and
regulatory device at its disposal to maintain its monopoly position."

** Internet/Technology

Title: Sun Plans Work Station Overhaul
Source: New York Times (D5)
http://www.nytimes.com/library/cyber/week/011398sun.html
Author: Steve Lohr
Issue: Information Technology
Description: Sun Microsystems Inc. plans to announce today an overhaul of
its work station business. This move is made in response to competition from
increasingly powerful personal computers. Sun will be offering machines that
are priced below $3,000 in addition to delivering improved graphics
capability in its new high-end work stations. Ed Zander, the executive in
charge of Sun's hardware business explained that Sun has been able to cut
prices on its work stations while improving their performance by revamping
its product design and manufacturing over the past year.

Title: Sun Microsystems Inc. Unveils Workstations With Low Price Tags
Source: Wall Street Journal (B9)
http://wsj.com/
Issue: Information Technology
Description: Sun is introducing a new line of low-cost computer workstations
that it hopes will shore up a part of its product line coming under
increased competition from low-cost PCs. Desktop workstations remained an
important product line for Sun, but those sales suffered because of inroads
made by PCs using chips from Intel and the Windows NT operating system from
Microsoft. The new workstations are geared to technical computer users, such
as designers and engineers.

Title: Yahoo! and MCI Team Up to Launch Co-Branded Internet On-Line Service
Source: Wall Street Journal (B18)
http://wsj.com/
Author: Don Clark
Issue: Internet
Description: Yahoo! and MCI are collaborating to launch a new on-line
service. MCI, under the new partnership, will provide Internet access under
a joint branding and marketing relationship to fill the largest remaining
gap in Yahoo's offerings. The partnership shows a convergence in strategies
among a series of Internet rivals. An analyst named Paul Noglows said, "This
is significant because it gives Yahoo a way to compete with Dnal and AOL."

** Jobs **

Title: Software Jobs Go Begging, Threatening Technology Boom
Source: New York Times (A1,D6)
http://www.nytimes.com/library/cyber/week/011398shortage.html
Author: Amy Harmon
Issue: Jobs
Description: As the U.S. increasingly relies on computer software, the
number of people who can develop and use these tools of our information age
has turned into a case of less supply and more demand. The Clinton
administrations announcement plans to invest $28 million in new initiatives
to train more programmers, are largely driven by "concern about the economic
implication of the programmer shortage when information technology, grossing
more than $865 billion a year, is the nation's largest industry, with the
software segment growing more than twice as fast as the overall economy.
"Yet, for students, job security is not the only issue of consideration when
it comes to a degree in computer science. Students cite everything from the
"nerd factor," exaggerated by the pasty parlor known as a "monitor tan," to
the fact that much of the work is tedious in this largely antisocial
profession. "Despite the fact that there are huge salaries to be made, kids
don't choose these fields," said Richard Skinner, president of Clayton
College and State University in Atlanta. And Eric Roberts, associate
director of Stanford university's computer science program said, "We need a
large technical class that is well trained to do work that is mind-numbingly
boring." "Basically a good programmer needs to comfortably exist in the
'machine state,' writing and meticulously checking and double-checking
hundreds of lines of code that are often just a small part of a much larger
project. It is a talent that is hard to come by -- and one often disparaged
in mainstream culture."

Title: Computerized Employee-Search Firms Attract Investors
Source: Wall Street Journal (B2)
http://wsj.com/
Author: Michael Selz
Issue: Jobs
Description: A tight labor market is fueling a surge of investment start-ups
that offer computerized ways to increase the speed and cut the cost of
finding workers. Career Central Corp., for example, operates MBA Central,
which uses e-mail and a data base of 25,000 job candidates to deliver to
customers at least 10 qualified prospects within five days. Another
electronic personnel-recruiting concern called NetStart is finalizing a $7
million round of financing. NetStart charges recruiters $200 a month to post
positions on its Web site. It also offers customers software to manage
collecting, scoring, routing, and reviewing the resumes that the site attracts.

** Television **

Title: Accord With TCI Could Help Microsoft To Extend It Clout in
Digital-TV Filed
Source: Wall Street Journal (B18)
http://wsj.com/
Author: David Bank
Issue: Digital TV
Description: Microsoft's agreement with TCI includes two provisions that
could help it extend its influence into the emerging market for
digital-television technology. In addition to licensing Microsoft's CE
operating system for at least five million advanced digital set-top boxes.
TCI said it will include elements of Microsoft's WebTV technology for
displaying World Wide Web pages on TV screens and other special effects.
And, TCI adopted a Microsoft-backed format for high-definition television
transmission that had earlier received a chilly reception from broadcasters.
If the rest of the cable industry follows TCI's lead, it could force
broadcasters to adopt a digital format favorable to the personal-computer
industry.

Title: V-Chips Ready To Be Plugged In, 2 Makers Demonstrate At CES
Source: Telecom AM---jan. 13, 1998
http://www.telecommunications.com/am/
Issue: V-Chips
Description: Law requires large TV sets later this year to be able to block
out programming based on a rating system the FCC has yet to approve. Two
companies have started the race to enter the yet-to-develop V-chip market.
V-Gis claims to have built its V-chip product around an original design by
Tim Collings of Simon Fraser U. V-Gis's device has a unique design feature:
it sits behind the TV rather than on top. The other company, Parental Guide
of Omaha, awarded a 1987 patent to John Olivo, said that his product has a
dual blocking ability: it can block TV shows according to the industry's
voluntary rating as well as movies under the MPAA system. Both companies are
well aware of each other, and rivalry is building. There is even a third
company that has what might be called an "L-chip", a device to block out
offensive language instead of programming.

Title: Broadcasters Make Appearance At CES, Get Few Answers on DTV
Source: Telecom AM---jan. 13, 1998
http://www.telecommunications.com/am/
Issue: Digital TV
Description: NAB Senior Vp-TV Charles Sherman said, "It's amazing how many
broadcasters are at the CES for the first time. Despite the cynics, this
shows that broadcasters are interested in DTV." Key questions most of the
broadcasters were asking were how soon there would be enough sets in their
markets to justify DTV broadcasts and how much sets wold cost. Neither
question was answered clearly, at least in public. Broadcasters will
probably have to wait until late spring, when major networks are likely to
announce their plans to affiliates, to know a mix of HDTV and
standard-definition TV (SDTV).

Title: Rabbit Ears Getting More Attention As DTV Technology Emerges At CES
Source: Telecom AM---jan. 13, 1998
http://www.telecommunications.com/am/
Issue: Digital TV
Description: The arrival of DTV meant a significant renewed interest in
over-air antennas at the CES show, including special "antenna farms"
intended to highlight antenna technologies and panel sessions on antenna
issues. Since many cable systems aren't likely to carry true HDTV in the
short term, antennas are the only way that many consumers will receive local
DTV signals. NAB Senior Vp-TV Charles Sherman said, "DTV makes antennas more
important than ever. We wish the whole world was still on antennas."

Title: Moonves Tells TV Critics Rating System 'Is A Nonevent'
Source: Communications Daily (1/13/98)
Issue: Television
Description: The TV ratings system installed by the industry a year ago is
"a nonevent" because parents aren't using it, said CBS TV Pres. Leslie
Moonves, who also is co-chmn. of the Gore Commission that is looking at
public interest obligations of digital broadcasters. Moonves commented on
the ratings system further, "It's not affecting programming one iota...There
has been absolutely no censorship [as a result] whatsoever...I don't think
parents are paying attention to it...By and large, it's not affecting people
the way people are watching television."

** Antitrust **

Title: Microsoft Pushes To Oust Judges Advisor
Source: New York Times (D2)
http://www.nytimes.com/library/cyber/week/011398microsoft.html
Author: Amy Harmon
Issue: Antitrust
Description: Microsoft tightened their bid yesterday to have a court
advisor, Lawrence Lessig of Harvard Law School, removed from the case. In
Monday's filing, Microsoft said it has a transcript of an email Lessig sent
that they feel demonstrates pure bias against their corporation. "Perhaps
most egregiously, Professor Lessig compares installing a Microsoft product,
the Macintosh version of Microsoft Internet Explorer 3.0, on his computer to
selling his soul, presumably equating Microsoft with the devil," the filing
said. Microsoft also cited a summary of a seminar at Harvard where Lessig
reportedly asked Gary Reback, a lawyer who represents Netscape, "what sort
of solution he would like to see embodied in a decree against Microsoft."The
Justice Department said that Microsoft has failed to show any evidence that
Lessig harbors a prejudice against the company. Microsoft said if its bid to
disqualify Lessig is denied, they will seek an immediate appeal.

Title: Microsoft Asks Judge to Remove Court Expert
Source: Wall Street Journal (B18)
http://wsj.com/
Author: John R. Wilke & Don Clark
Issue: Antitrust
Description: Microsoft asked a federal judge to remove Professor Lawrence
Lessig, a court-appointed Harvard Univ. Internet expert, from the DOJ's
antitrust case against them. The software giant claims that Mr. Lessig is
biased against the company. The company complained that Mr. Lessig compared
installing a version of Microsoft's Internet Explorer product "to selling
his soul, presumably equating Microsoft with the devil." By formally asking
Judge Jackson to remove him, the company appeared to be laying groundwork
for an appeal of the appointment of the expert, known as a special master.
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