Communications-related Headlines for 3/10/98

Television
WP: Broadcasters And Their Friends on The Hill
WP: Free Air Time
WSJ: In Little Rock, a Little War Over TV-News Expenses

Universal Service
FCC: Commitment to Ensure that Telecom Revolution Benefits All Americans

Internet
NYT: Lott Says Cities Will Have Input on Any Internet Tax Bill

Mergers
WSJ: WorldCom, MCI Probe Is Widened
WSJ: Qwest Is Acquiring LCI for $4.43 Billion,
Creating No. 4 Long-Distance Provider
NYT: Qwest Set to Acquire LCI For $4.4 Billion in Stock
WP: LCI to Be Acquired In $4.4 Billion Deal

InfoTech
NYT: 'Millennium Czar' To Wrestle With Year 2000 Bug

** Television **

Title: Broadcasters And Their Friends on The Hill
Source: Washington Post (A17-OpEd)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/10/009l-031098-idx.html
Author: David S. Broder
Issue: Campaign Finance Reform/Free Time for Candidates
Description: In op-ed, Broder writes, one of the last hopes for improving
the current "rotten,
money-corrupt election system lies in the proposal to require broadcasters,
who have just received a free gift of immense value in the new digital
spectrum, to repay the public by making limited amounts of free time
available for political broadcasts." FCC Chairman Bill Kennard says that
there is enough
support in the Federal Communications Commission to adopt a rule that would
make this part of the broadcasters' public interest obligation. But when he
announced the complex process to begin with hearings this month,
broadcasters reacted strongly. Broadcasters have enlisted the help of their
friends with strong political pull to assist them in challenging the FCC's
right to act on its own. "Kennard maintains that there is ample legal
authority for the proposed rule. Many in Congress dispute that, and
ultimately the courts may have to decide."

Title: Free Air Time
Source: Washington Post (A16-OpEd)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/10/000l-031098-idx.html
Author: WP Editorial Staff
Issue: Campaign Finance Reform/Free Time for Candidates
Description: Free air time won't solve the campaign finance problems by any
means but it might ease it a bit. FCC Chairman Kennard has written to
skeptics in
Congress that he is not entirely sure of the Federal Communications
Commissions authority over this issue but he is willing to inquire.
Broadcasters oppose the idea as they don't want to give up any air time for
free. "Senate Republicans want to add a rider to the supplemental
appropriations bill this week to keep the FCC from even considering
requiring free air time for political candidates as a way of reducing the
cost of campaigns. It is Congress that has authority over campaign finance,
they say -- which would be fine had the Senate itself not just failed to
exercise that authority. The Republican leadership used a filibuster to
block a campaign finance bill that had majority support." Basically they are
telling the FCC that they won't even let the Commission think about
regulating broadcasters in this manner. But the "FCC should be allowed to go
ahead. See what it can come up with; time enough to block the proposal then,
if that's what Congress decides to do. Who knows? In the interim, Congress
itself might feel moved to act, since it feels so strongly that the matter
is within its jurisdiction."

Title: In Little Rock, a Little War Over TV-News Expenses
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Kyle Pope
Issue: Television Economics
Description: Network news executives are fighting back against price hikes
at hotels and other establishments in Little Rock, Arkansas. The city is
gearing up to handle a media spectacle that could rival the OJ Simpson trial
and the networks are a little shocked at the prices they are being asked to
pay -- they are used to it in the Third World, not in the U.S. Network
executives will meet with Little Rock Mayor James Dailey tomorrow to air
their complaints.

** Universal Service **

Title: Commitment to Ensure that Telecom Revolution Benefits All Americans
Source: FCC
http://www.fcc.gov/Speeches/Kennard/spwek807.html
Author: Chairman Bill Kennard
Issue: Universal Service/Disabilities
Description: Declaring that we need to ensure that all Americans have access
to telecommunications services, FCC Chairman William Kennard said "We cannot
ignore the needs of those with disabilities. We cannot create a society that
leaves out the 26 million Americans with hearing disabilities or the nine
million with sight disabilities or the 2.5 million Americans with speech
disabilities."

** Internet **

Title: Lott Says Cities Will Have Input on Any Internet Tax Bill
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/biztech/articles/10tax.html
Author: Associated Press
Issue: Internet/Government Regulation
Description: Senate Majority Leader Trent Lott announced yesterday that the
Senate would not act to block state and local government taxation of online
services and Internet transactions without the support of city leaders. Lott
told the annual meeting of the National League of Cities: "What I think we
need to do is work together and find a way that we can keep the tax burden
from growing...while giving you the opportunity to make sure that your tax
base is not taken away from you in the years ahead...We will not have action
[on the bill] in the Senate until we have worked out an agreement that you
are comfortable with."

** Mergers **

Title: WorldCom, MCI Probe Is Widened
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: John Wilke & Jared Sandberg
Issue: Merger
Description: Industry analysts estimate that if the WorldCom-MCI merger goes
through, the combined company would control more than half the Internet
traffic over the backbone of the network. The Justice Department is widening
its investigation of the deal which may signal that the $37 billion merger
could face antitrust problems. The deal is also facing scrutiny in Europe.

Title: Qwest Is Acquiring LCI for $4.43 Billion, Creating No. 4
Long-Distance Provider
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: Stephanie Mahta
Issue: Merger
Description: Denver-based Qwest Communications International has agreed to
purchase larger rival LCI International for $4.43 billion in stack. The deal
will create the nation's fourth largest long distance provider. Qwest is
building an expensive fiber optics network and needs to fill it with long
distance traffic. LCI needed international and local facilities.

Title: Qwest Set to Acquire LCI For $4.4 Billion in Stock
Source: New York Times (D2)
http://www.nytimes.com/yr/mo/day/news/financial/qwest-lci.html
Author: Seth Schiesel
Issue: Merger
Description: Qwest Communications International Inc. announced yesterday
that it will acquire LCI International for $4.4 billion in stock. Assuming
that the Worldcom/MCI merger goes through, this deal will make Qwest the
nation's fourth-largest long-distance carrier.

Title: LCI to Be Acquired In $4.4 Billion Deal
Source: Washington Post (C1,C4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/10/133l-031098-idx.html
Author: Mike Mills
Issue: Merger
Description: LCI International, based in McLean, VA, announced that it will
sell itself to Qwest Communications International Inc., "a little-known
communications upstart out of Denver that wants to compete head-on against
the country's major long-distance companies." The deal would combine an
Internet fiber-optic network that Qwest is building with LCI's current
long-distance system and its proven ability in marketing, billing and
customer support.

** InfoTech **

Title: 'Millennium Czar' To Wrestle With Year 2000 Bug
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/yr/mo/cyber/articles/10millennium.html
Author: Jeri Clausing
Issue: InfoTech
Description: John Koskenin came out of retirement Monday to lead the
President's Council on Year 2000 Conversion, or the Y2K Council. The Y2K
Council will work to make sure that both the government and private sector
will be prepared to avert computer chaos at the turn of the century.
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