Communications-related Headlines for 1/29/99

UNIVERSAL SERVICE
Report on the Deployment of Advanced Telecommunications
Capability to All Americans (FCC)

INTERNET
FCC Backs Away From Regulating Internet Gateway (WSJ)
Minnesota's New Chief Pushes Net as Political Tool (CyberTimes)
A 'Body' Blow To Minnesota Radio? (WP)
Charges Filed in U.S. Hate E-mail Case (CyberTimes)
Groups Vow to Expand Intel Boycott (WP)

MERGERS
Union Urges Approval of Ameritech Merger (ChiTrib)
Inflated Stocks Cushion Pitfalls of Net Mergers (NYT)

SPECTRUM
F.C.C. Offers Low-Power FM Stations (NYT)
Licensed Low Power FM Radio (FCC)
Public Safety National Coordination Committee (FCC)

ANTITRUST
In a Role Reversal at Antitrust Trial, Microsoft Lauds
Competitors' Products (WSJ)

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UNIVERSAL SERVICE
=================

REPORT ON THE DEPLOYMENT OF ADVANCED TELECOMMUNICATIONS
CAPABILITY TO ALL AMERICANS
Issue: Universal Service
From the News Release: The Commission [Thursday] approved a report on the
current availability of advanced telecommunications capability to all
Americans. The Commission prepared this report pursuant to section 706 of
the Telecommunications Act of 1996, which directed the FCC to examine
whether advanced telecommunications capability, or broadband, is being made
available to all Americans on a reasonable and timely basis, and to report
its findings by the third anniversary of the Telecommunications Act of 1996.
The Commission concluded that the consumer broadband market is in the early
stages of development, and that, while it is too early to reach definitive
conclusions, aggregate data suggests that broadband is being deployed in a
reasonable and timely fashion. The Commission based its conclusion, in part,
on the actual deployment of advanced telecommunications capability in this
nascent market. The Commission found that at least 375,000 residential
consumers are purchasing broadband services, and that substantially more
have access to broadband capability. The Commission compared broadband to
other communications-related technologies, such as black-and-white and color
television, and cellular services. The Commission found that, in terms of
actual users, deployment broadband is exceeding the rollout of these other
technologies at a similar point in their deployment. The Commission noted,
however, that deployment of these other technologies accelerated after the
first few years. The Commission stated that it anticipates that broadband
deployment will similarly accelerate in the coming years. The Commission
further noted that there is a significant initial consumer demand for
broadband capability and stated its expectation that demand will grow
substantially in the near future.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9004.html

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INTERNET
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FCC BACKS AWAY FROM REGULATING INTERNET GATEWAY
Issue: Internet Regulation
"This is a serious issue," Federal Communications Commission Chairman
William Kennard said yesterday. "It is one that I believe we should continue
to monitor very closely." And with that the FCC decided yesterday not to
regulate broadband access to the Internet while keeping open the possibility
that it could intervene in the future. Cable companies oppose FCC
involvement. Some high technology companies, like America Online, want
broadband access opened. The FCC report to Congress will now probably say
the agency won't take action at this time. In other action the Commission
unveiled a proposal that would allow the establishment of hundreds of new,
low-power FM radio stations across the country. Their goal would be to serve
smaller towns and community groups, including universities and nonprofit
organizations. The FCC also ordered long-distance phone companies to
compensate pay phone owners 24 cents for each dial-around call they carry.
The Commission decided not to vote on whether to release an audit showing
that the Baby Bells can't find billions of dollars in equipment. That vote
is expected next month.
[SOURCE: Wall Street Journal (B2), AUTHOR: Kathy Chen]
http://wsj.com/

MINNESOTA'S NEW CHIEF PUSHES NET AS POLITICAL TOOL
Issue: Internet&Politics
New Minnesota Governor Jesse "The Mind" Ventura will use his 5,000-member
e-mail list, JesseNet, to reach supporters and muster support for
legislation. He also plans on receiving the views of citizens through his
website http://www.jesseventura.org. The Internet has been cited by Gov
Ventura and volunteers as a key component in his victory last year. "Let's
face it -- that's the future," said Gov Ventura. "It's one of the things I
stand for very strongly."
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney rfr( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/articles/29politics.html
see also:
A 'BODY' BLOW TO MINNESOTA RADIO?
Issue: Public Radio and TV
Minnesota Gov. Jesse Ventura may receive no Christmas cards from his
constituents in Lake Wobegon this year. Yesterday he proposed gradual
elimination of state aid for Minnesota Public Radio, the home of "A Prairie
Home Companion." In the next fiscal year funding for public radio would be
reduced by 25%. The second year it would drop 50 percent, and in the third
year it would be eliminated altogether. Funding for public television in
Minnesota also would be eliminated in four years with a similar gradual
reduction.
[SOURCE: Washington Post (C7), AUTHOR: Associated Press]
http://www.washingtonpost.com/wp-srv/WPlate/1999-01/29/183l-012999-idx.html

CHARGES FILED IN U.S. HATE E-MAIL CASE
Issue: Internet
Los Angeles authorities have charged a man with a hate crime for sending
death threats to 100 Hispanic people by e-mail. The prosecutor said, "He
says that Hispanics get unfair advantages, that they used affirmative action
to get where they are. He says he is going to kill them all." The suspect
has admitted to sending the messages, is expected to plead guilty and
receive two years in jail. Raney reports, while Internet content has been
routinely recognized by courts as protected under the First Amendment,
threats are considered criminal acts, not free speech. Cases such as this
one extend into the new medium existing law that governs threats.
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney rfr( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/articles/29mail.html

GROUPS VOW TO EXPAND INTEL BOYCOTT
Issue: Privacy
Last week saying it would help online merchants eliminate fraud, Intel Corp.
unveiled new computer chip technology which would allow Pentium computers to
transmit its unique serial number internally and to Web sites that requested
it to help verify users. On Monday several privacy groups announced a
boycott. Later on Monday Intel agreed to turn off the technology in the
default setting and to offer free software to let consumers permanently
disconnect the feature. On Thursday privacy groups told Intel they are not
dropping their boycott and requested Intel recall chips already in
production. They also promised to expand their boycott to include any
computer makers that sell machines using the Pentium III, which is expected
on the market within weeks. Intel spokesman Chuck Mulloy said Intel will not
consider recalling Pentium chips already sent to computer manufacturers.
[SOURCE: Washington Post (Online), AUTHOR: Ted Bridis (Associated Press)]
http://www.washingtonpost.com/wp-srv/WAPO/19990129/V000677-012999-idx.html

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MERGERS
=======

UNION URGES APPROVAL OF AMERITECH MERGER
Issue: Mergers
The Local 21 of the International Brotherhood of Electrical Workers has
decided to endorse the SBC-Ameritech merger after meeting with the top
executives of the phone giants. The merger was endorsed last year by the
Communications Workers of America. SBC Chairman Edward Whitacre and
Ameritech CEO Richard Notebaert assured IBEW President Donald Moseley that
the deal would result in more union jobs in Illinois. At Illinois Commerce
Commission hearings on the merger, economists hired by long distance
companies criticized SBC-Ameritech's plans for providing phone service in 30
out-of-region cities. "You may think you can show the others how to do it,"
said one economist. "But your business strategy has the exact same set of
assumptions as anybody else's."
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9901290366,00.html

INFLATED STOCKS CUSHION PITFALLS OF NET MERGERS
Issue: Internet/ Competition
Yahoo! has just finalized a $2.2 billion deal to purchase Geocities, a site
that facilitates the creation electronic communities. That is a mighty big
price tag for a company that lost almost $20 million last year. But for
Yahoo, valued at $38 billion, that price is hardly a drop in the bucket for
a purchase that will result in its rise to the No.1 visited site on the Web.
With such a high market value, Yahoo can afford the risk of acquiring an as
of yet unprofitable company. Mr. Hansell predicts that inflated stock
values will allow the trend of such Internet consolidations to continue --
perhaps fulfilling prophecies that "a handful of leading companies will come
to dominate cyberspace."
[SOURCE: New York Times (C2), AUTHOR: Saul Hansell]
http://www.nytimes.com/library/tech/99/01/biztech/articles/29yahoo.html
INVESTORS CHEER YAHOO DEAL
[SOURCE: San Jose Mercury News, AUTHOR:Miguel Helft]
http://www.mercurycenter.com/business/center1/yahoo012999a.htm
DEAL LIFTS YAHOO TO NO. 2 NET SITE
[SOURCE: San Jose Mercury News, AUTHOR: Stephen Buel]
http://www.mercurycenter.com/business/center1/yahoo012999.htm

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SPECTRUM
========
F.C.C. OFFERS LOW-POWER FM STATIONS
Issue: Radio
A FCC proposal for relaxing the regulations on low-power radio stations was
submitted for public comment at an open meeting on Thursday. With growing
consolidation in the broadcasting industry and a significant drop in
minority ownership in the last few years, the Government is concerned about
the lack of diversity on the airwaves. As a result, the FCC has proposed
granting licenses to small radio stations with transmissions reaching an area
of 2 to 18 miles. The agency's plan has received sharp criticism from the
National Association of Broadcasters, who claim that new stations would
cause interference with existing signals. Chairman William Kennard and
Commissioner Gloria Tristani are unmoved by the broadcasters arguments. "We
cannot deny opportunities to those who want to use the airwaves to speak to
their communities simply because it might be inconvenient for those who
already have these opportunities," they said in a joint statement.
[SOURCE: New York Times (C1), AUTHOR: Stephen Labaton]
http://www.nytimes.com/yr/mo/day/news/financial/small-radio-stations.html
FCC PROPOSES LICENSING 'PIRATE' RADIO BROADCASTERS
[SOURCE: San Jose Mercury News, AUTHOR: Brad Kave]
http://www.mercurycenter.com/premium/front/docs/pirate29.htm

LICENSED LOW POWER FM RADIO
Issue: Radio
From the News Release: The FCC [Thursday] proposed to license new 1000 watt
and 100 watt low power FM (LPFM) radio stations, and sought comment on also
establishing a third "microradio" class at power levels from 1-10 watts. In
a Notice of Proposed Rulemaking adopted [1/28], the Commission said its
goals are to provide new opportunities for community-oriented radio
broadcasting, foster opportunities for new radio broadcast ownership and
promote additional diversity in radio voices and program services, while
protecting the integrity of the spectrum. It said that new LPFM stations
could provide a low-cost means of serving urban communities and
neighborhoods, as well as populations living in smaller towns and
communities. It said it had received over 13,000 inquires in the last year
from individuals and groups showing an interest in starting a low power
radio station. The Commission said it was proposing a number of interference
protection criteria that would help to insure that any new low power FM
radio service would protect existing radio services and preserve the
technical integrity of radio service today which has been fostered and
maintained by existing FCC rules.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1999/nrmm9003.html

PUBLIC SAFETY NATIONAL COORDINATION COMMITTEE
Issue: Spectrum
From the News Release: Chairman William E. Kennard announced [Thursday] that
he has chosen Kathleen Wallman to Chair the Commission's Public Safety
National Coordination Committee (NCC). "I'm delighted that Kathy has chosen
to accept this important position. The licensing of this spectrum is a major
step in ensuring that our nation's public safety agencies have the spectrum
resources they need to protect the safety of life, health and property in
this country," said Chairman Kennard. "She brings with her a wealth of
telecommunications expertise that will be essential as the NCC develops a
national structure for what is the largest allocation ever of public safety
spectrum." Since November 1997, Wallman has worked at Wallman Strategic
Consulting. Prior to that she served as Deputy Assistant to the President
for Economic Policy and Counselor and Chief of Staff of the National
Economic Council. Wallman also served as Deputy Counsel to the President in
the Office of the White House Counsel from November 1995 until January 1997.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9005.html

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ANTITRUST
=========

IN A ROLE REVERSAL AT ANTITRUST TRIAL, MICROSOFT LAUDS COMPETITORS' PRODUCTS
Issue: Antitrust
In an apparent effort to provide evidence of robust industry competition, a
key Microsoft executive testified yesterday on the performance and growing
popularity of technology such as the free Linux operating system and
so-called network computer. As the Microsoft antitrust trial continued, Paul
Maritz even made a point of saying his son, a college freshman, had Linus
running on one of his home computers. "There was an element of him doing it
to annoy me," he laughed. Outside the courtroom government attorney David
Boies said he planned to seek information on whether Microsoft has
encouraged computer makers to adopt Linus or other software products mainly
to foster the appearance of competition. In a separate action the judge
granted a Justice Department motion to force Microsoft to turn over a
document that the government hopes will boost its contention Microsoft
arbitrarily combined Windows and the Internet Explorer.
[SOURCE: Wall Street Journal (B2), AUTHOR: David Bank & Keith Perine]
http://wsj.com/
See also:
MICROSOFT ORDERED TO HAND OVER ANALYSIS
[SOURCE: Washington Post (E10), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm

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...and we are outta here. Have a Super Sunday and we will see you on Monday.