FCC
TelecomAM: FCC's Actions Hurt Funding Chances, Senate Panel Tells Kennard
TelecomAM: Bell Atlantic and SBC Praise FCC On Long Distance Process
Television Economics
NYT: A Family Circle Breaks: Murdoch Owns Dodgers
NYT: Steinbrenner Discussed Selling Piece of Yankees
NYT: Yanks Would Bolster Cablevision's Empire
NYT: BBC and Discovery to Develop Programming Together
Lobbying
NYT: Labor Asks Members to Fund $13 Million Political Effort
NYT: Database of Lobbyists Sheds Light on Big Spenders
Philanthropy
NYT: Alumni Pledge $10 Million to a Public High School
Internet
NYT: Drudge Case Takes on Issue of Liability
WSJ: Postal Service's 'Snail Mail' Meets E-Mail as Internet Shops Are
Targeted
WP: Governors Back 3-Year Ban on Internet Taxes
Encryption/Privacy
WSJ: Network Associates Will use Dutch Unit To Circumvent Encryption
Export Rules
NYT: Export Laws Challenged by Sale of Encryption Software Abroad
TelecomAM: USTA's Neel Says CALEA Negotiations Have Stalled
Mergers
WSJ: Motorola to Boost Stake in NetSpeak, Purchase Its Software
WSJ: Merger Talks Between At-Home Corp., Time Warner Unit Are Off
for Now
** FCC **
Title: FCC's Actions Hurt Funding Chances, Senate Panel Tells Kennard
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: FCC/Regulation
Description: Federal Communications Chairman William Kennard got a
tongue-lashing from the Senate Appropriations Committee's Commerce
Subcommittee. "We set policy, you administer," said Sen. Ernest Hollings
(D-SC). He said the FCC seems "take its edict" directly from the Clinton
Administration and is setting its own agenda on such issues as wiring
schools and libraries and free time for political candidates. Senate
Appropriations Chairman Ted Stevens (R-AK) said the FCC seems intent on
seeing "how far it can stretch" Congress' intent and is "making a case" for
Members of Congress who want to destroy the agency. Subcommittee Chairman
Judd Gregg (R-NH) said universal service should be "just that -- serving
rural areas." Chairman Kennard defended the FCC's actions on universal
service -- ensuring the senators that the funds for schools and libraries
and those for the high-cost fund come from different places and "don't
affect" each other. He also said Schools & Libraries Corp head Ira Fishman
is doing the best job possible so far.
Title: Bell Atlantic and SBC Praise FCC On Long Distance Process
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Bell Atlantic and SBC expect to offer long distance service in
one or more of their states by year-end, citing the new cooperative attitude
of the FCC and rapidly increasing local competition, executives of both
companies told analysts. SBC CEO Edward Whitcare said he expected to be in
"some or all" seven states this year, after planning to file at all state
agencies by June or July. Whitcare credited a string of U.S. District Court
decisions against the FCC for the new attitude, but he also gave credit to
the new commissioners, especially Chairman Kennard for what he said was a
more open attitude toward the applications: "Our rapport with the FCC is
better than it has been in a long, long time."
** Basaball Been Berry Berry Good to Me **
(Lighten up. Its spring and the Cubs are still in first place.)
Title: A Family Circle Breaks: Murdoch Owns Dodgers
Source: New York Times (C21)
http://www.nytimes.com/library/sports/baseball/032098bbo-dodgers-sale.html
Author: Murray Chass
Issue: Television Economics
Description: Baseball owners approved the sale of the Los Angeles Dodgers to
Rupert Murdoch's Fox Group for $311 million. Fox Group's parent company,
News Corp, now has an interest in the Dodgers, the national rights to major
league games, and local media right of 22 major league clubs. One owner
said, "[News Corp] made very strong statements that they would operate each
of these businesses separately." The O'Malley's were the last of the family
owners in baseball and Walter O'Malley broke my father's heart when he moved
the club from Brooklyn before the 1958 season.
Title: Steinbrenner Discussed Selling Piece of Yankees
Source: New York Times (A1)
http://www.nytimes.com/library/sports/baseball/032098bba-yanks-sale.html
Author: Murray Chass
Issue: Television Economics
Description: On the day that baseball owners approved the sale of the Los
Angeles Dodgers to Rupert Murdoch's Fox Group, New York Yankees' owner
(King) George Steinbrenner announced that he has had talks about selling a
portion of the legendary franchise to Cablevision Systems Corporation.The
television and sports company already owns the New York Knicks and Rangers.
Media companies are purchasing teams in a variety of sports because the
teams prove to be "vital anchors to their programming business." [See also
NYT (C22) "Yanks Would Bolster Cablevision's Empire"
http://www.nytimes.com/library/sports/baseball/032098bba-yanks-suiter.html
][Cone to start home opener.]
Title: BBC and Discovery to Develop Programming Together
Source: New York Times (C2)
http://www.nytimes.com/yr/mo/day/news/financial/tv-bbc-discovery.html
Author: Lawrie Mifflin
Issue: Mergers
Description: The British Broadcasting Company and Discovery Communications
have announced a $565 million alliance to create new programs and cable
channels around the globe. Discovery will invest 1) $290 million in new
channel development, 2) $175 million in documentary programs produced or
co-produced by BBC, and 3) $100 million to start BBC America to be available
to American cable operators on March 29. BBC America will be a network of
drama, comedy and news programs including four daily live half-hour news
broadcasts from BBC World news service. BBC World will try to make deals
with other commercial outlets and PBS in hopes of being available in the
colonies 24 hours a day. [Call your cable operator and say, I want my BBC.]
** Lobbying **
Title: Labor Asks Members to Fund $13 Million Political Effort
Source: New York Times (A12)
http://www.nytimes.com/yr/mo/day/news/national/afl-cio-meeting.html
Author: Steven Greenhouse
Issue: Lobbying
Description: The leaders of the AFL-CIO have voted to create a $13 million
"mobilization" fund to help pro-labor candidates get elected, pro-labor
legislation to be passed, and to defeat a California referendum that would
restrict the use of union dues for political activity without prior,
specific approval of members. The $13 million fund -- $1 for each AFL-CIO
member -- would be an addition to the $15 million the organization has
already approved for political activity this year. [Hey, maybe we can have
parallel legislation that gets prior approval from each stock holder, too.]
Title: Database of Lobbyists Sheds Light on Big Spenders
Source: New York Times (CyberTmes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/20lobby.html
Author: Rebecca Fairley Raney
Issue: Lobbying
Description: The Center for Responsive Politics (CPR) is making available
over the Internet a database of the lobbying efforts in Washington. of
individuals and organizations. CPR already has a searchable database on
campaign contributions. "We're broadening our scope to say money in politics
doesn't involve just campaign contributions," said the center's webmaster. A
new CRP report shows that lobbying is a $1.2 billion industry. See
http://www.crp.org for more information.
** Philanthropy **
Title: Alumni Pledge $10 Million to a Public High School
Source: New York Times (A23)
http://www.nytimes.com/yr/mo/day/news/national/highschool-gift.html
Author: Jacques Steinberg
Issue: Philanthropy
Description: Alumni of the Brooklyn Technical High School have pledged to
raise $10 million to establish a university-style endowment for one of New
York's most selective and prestigious public schools. The endowment could
generate as much as $800,000 per year for the school. The alum heading the
effort is Leonard Riggio, chairman of Barnes & Noble. Ironically, Schools
Chancellor Rudy Crew, who welcomed the unsolicited gift yesterday, spurned a
group of elementary school parents who raised $46,000 last year to pay the
salary of a teacher in hopes of reducing class size.
** Internet **
Title: Drudge Case Takes on Issue of Liability
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/cyberlaw/20law.html
Author: Carl Kaplan
Issue: Internet Content
Description: The $30 million libel suit filed by Sidney and Jacqueline
Blumenthal against Matt Drudge will address the possibility of liability of
the case's co-defendant, America Online. The online service posted the
disputed column. The Blumenthal's lawyers want AOL held to the same standard
that the Washington Post would have been if it had published the story. A
decision on AOL's liability is expected in four to six weeks.
Title: Postal Service's 'Snail Mail' Meets E-Mail as Internet Shops Are
Targeted
Source: Wall Street Journal (B7A)
http://wsj.com/
Author: Anthony Palazzo
Issue: Internet Commerce
Description: Camped out at last week's Internet World trade show was the
U.S. Postal Service, hawking -- of all things -- "snail mail." That quaint,
yet patronizing, term implies that old-fashioned mail is a relic in this era
of instant messaging and online chat. So what was the Postal Service doing
at the trade show? Trying to capitalize on a budding opportunity,
post office reps said. "These people are trying to do commerce on the
Internet. They want to be successful, and they are," said Danny Lopez,
tactical marketing specialist for the Postal Service. At Internet World, the
spotlight was on shipping services. The post office reckons it offers
cheaper rates than its largest competitors, UPS and Federal Express. The
postal service has also made itself a more attractive choice by improving
its on-time rates under Postmaster General Marvin Runyon, who's retiring
this spring. Services have been expanded to include business-customer
pickups and shipping boxes customized for Postal Service customers.
Title: Governors Back 3-Year Ban on Internet Taxes
Source: Washington Post (F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/20/123l-032098-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Regulation
Description: The nation's governors agreed to support a three-year ban on
special Internet commerce taxes in exchange for a promise by Congress to
consider requiring electronic merchants to collect sales taxes after the
moratorium. The Nat'l Governors Assoc. had opposed bipartisan legislation in
the House and Senate to enact an Internet tax moratorium, saying the freeze
could deprive state and local governments of crucial tax revenue as
electronic commerce becomes popular. The governors' disapproval threatened
to scuttle the bills. Industry groups contend that imposing sales taxes on
Internet transactions will slow the growth of electronic commerce and make
it less appealing to consumers.
** Encryption/Privacy **
Title: Network Associates Will use Dutch Unit To Circumvent Encryption
Export Rules
Source: Wall Street Journal (B7)
http://wsj.com/
Author: David Bank
Issue: Encryption
Description: Network Assoc. said it will skirt U.S. export restrictions on
strong encryption technology by selling data-security software to
international customers from a Dutch subsidiary, a move likely to draw close
gov't. scrutiny. Execs at Network Assoc. said they developed the plan to
meet demands from global customers to protect the confidentiality of e-mail
without providing law-enforcement agencies with the means to monitor the
communications (slick... but not slick enough!). The U.S. Commerce Dept.,
concerned about the potential abuse of encryption technology by terrorists
and drug traffickers, has made the inclusion of such provisions a condition
of granting exceptions to the export ban, except for certain customers, such
as banks.
Title: Export Laws Challenged by Sale of Encryption Software Abroad
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/20encrypt.html
Author: John Markoff
Issue: Encryption
Description: Network Associates has announced that it will allow its Dutch
subsidiary to begin selling an international version of Pretty Good Privacy
(PGP). The data-scrambling software does not provide a "back door" for law
enforcement surveillance. "This is the biggest challenge yet to the US
policy," said an industry analyst. "It has a tremendous consumer base." The
Clinton Administration is starting to get pressure from Republicans to end
the export ban on encryption software.
Title: USTA's Neel Says CALEA Negotiations Have Stalled
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Privacy
Description: Negotiations between the FBI and the phone industry on
implementation of the Communications Assistance for Law Enforcement Act
(CALEA) have installed and the situation undoubtedly will end up in the
FCC's lap, U.S. Telephone Assoc. President Roy Neel told reporters at a
media lunch. Neel said negotiations broke down because of the FBI's
insistence on adding a "punch list" of expanded capabilities not authorized
by CALEA and the phone industry's concern that the October deadline can't be
met, even if an agreement were reached now. He said money issues also play
an important part in the dispute, particularly how the additional
capabilities on the "punch list" would be funded. "There's no way the
industry can implement the changes sought by the Dept. of Justices within
the $500 million appropriated," Neel said.
** Mergers **
Title: Motorola to Boost Stake in NetSpeak, Purchase Its Software
Source: Wall Street Journal (B7)
http://wsj.com/
Issue: Merger/Investment
Description: Motorola said it intends to boost its stake in NetSpeak to
nearly 35% and said it will buy a minimum of $30 million in software over
several years from the firm, which specializes in technology for telephone
services over the Internet. The investment heats up the race among
telecommunications and data networking firms to provide traditional voice
communications and new multimedia services over the Internet. NetSpeak's
products include "gateway" software that transports calls using Internet
Protocol, or IP. Due to the unregulated nature of the 'Net, using the global
network for phone calls can significantly slash long-distance charges for
consumers, though the quality of conversation is often poor.
Title: Merger Talks Between At-Home Corp., Time Warner Unit Are Off for Now
Source: Wall Street Journal (B7)
http://wsj.com/
Author: Leslie Cauley
Issue: Mergers
Description: Merger talks are off for now between At-Home Corp. and Road
Runner, the two leading cable-TV-owned Internet services, people familiar
with the matter say. The various parties were unable to agree on valuation,
control and other issues. At-Home's owners also have been talking to AT&T
about the phone giant's investing in At-Home. AT&T's investment in the
high-speed Internet-access service were largely contingent on At-Home
successfully merging with Road Runner, which itself is in the process of
merging with U S West's MediaOne Express service.
*********
We are outta here. Happy Fri-Return of the Smart*ss-day. Have a great weekend!