Universal Service
Telecom AM: Irving Defends FCC Universal Service Implementation
Internet
WP: Governors Support Internet Sales Tax
NYT: Fewer Bricks Mean Higher Returns At New Internet Banks
Telephony
Telecom AM: Tauzin To Join McCain In Seeking Elimination Of Exercise Tax
Merger
WSJ: Sinclair Broadcast Agrees to Acquire Sullivan for More Than
$800 Million
** Universal Service **
Title: Irving Defends FCC Universal Service Implementation
Source: Telecom AM---feb. 25, 1998
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The FCC's system of carrier contributions to the universal
service fund is not a tax, National Telecommunications & Infrastructure
Administration Administrator Larry Irving said. He said that the new
programs are built on "a concept that's existed for decades" and that he
hoped the session would help people "get out of the Washington mindset about
what all this means." For 70 years, "it has been this nation's policy to
give everyone basic telecom service," Irving said. He said that within the
next decade Internet access will be basic service, noting that beginning
this year it no longer will be possible to take the Graduate Record Exam
anywhere but online and students without computer and Internet experience
will be handicapped.
** Internet **
Title: Governors Support Internet Sales Tax
Source: Washington Post (C9,C12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/25/063l-022598-idx.html
Author: David S. Broder and Rajov Chandrasekaran
Issue: Internet Regulation
Description: As Internet shopping becomes more popular, many of the nation's
governors are concerned about losing billions of dollars in tax revenue. In
reaction to this, a resolution adopted at the final session of the National
Governor's Association urged Congress to expand the ability of states to tax
commerce on the Internet. The resolution would require Internet and
catalogue merchants to collect and pay sales taxes even if they do not have
a physical presence in the state to which the goods are being shipped.
Currently, such businesses are not required to collect state sales taxes in
any destination state in which they do not operate. In return, the governors
said they would support a prohibition on taxing Internet access, and they
pledged to try to organize the current mass-variances in local sales taxes
by enacting a single rate within each state. They contend that by creating
uniform rates it would be easier for Internet and mail-order merchants to
collect and remit the taxes.
Title: Fewer Bricks Mean Higher Returns At New Internet Banks
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/cyber/week/022598bank.html
Author: Sandeep Junnarkar
Issue: Internet Use
Description: A new breed of banking is emerging across the Internet. Instead
of providing Web access only as a convenience, these banks offer all of
their services on the Internet. They don't have any bank branches or
tellers, all checks are direct-deposited or mailed, and they are opened 24
hours-a-day, seven days-a-week for service at their Web sites. Because these
banks don't have the overhead expenses of running branch offices they are
able to parlay their reduced costs into better interest rates on money
market accounts, certificates of deposit, and they even offer interest on
checking accounts. Currently, only two such Internet banks are operational:
Security First Network Bank and Atlanta Internet Bank, but a third,
CompuBank, has been chartered.
** Telephony **
Title: Tauzin To Join McCain In Seeking Elimination Of Exercise Tax
Source: Telecom AM---feb. 25, 1998
http://www.telecommunications.com/am/
Issue: Telephony
Description: House Telecom Subcommittee Chairman Billy Tauzin is drafting
legislation to eliminate the 3 percent exercise tax on telecommunications.
His videotaped announcement was aired Feb. 24 at the Cellular
Telecommunications Industry Association (CTIA) convention in Washington DC,
one day after Senate Committee Chairman John McCain told the same audience
that he will propose similar legislation as soon as this week. Tauzin said
he is committed to "getting rid of the tax on the First Amendment."
** Merger **
Title: Sinclair Broadcast Agrees to Acquire Sullivan for More Than $800 Million
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Kyle Pope
Issue: Merger
Description: Sinclair Broadcast Group said it agreed to pay more than $800
million to buy Sullivan Broadcast Holdings, a closely held owner of 13
midsize TV stations. Sinclair will have 24 Fox affiliates after the Sullivan
deal is complete. Sinclair said the deal all but ends a TV expansion push
that has doubled the company's stable of TV stations during the past year.
Under terms of the transaction, Sinclair will pay Sullivan shareholders
about $840 million and will assume as much as $160 million in Sullivan debt.
Once the Sullivan deal closes this spring, Sinclair will own a total of 55
TV stations, up from 28 a year ago, covering about a quarter of all American
households.
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