Communications-related Headlines for 3/24/99

ONLINE ADVOCACY
Flood of E-Mail Credited With Halting U.S.
Bank Plan (CyberTimes)

FCC
Kennard Catches Hill (B&C)

TELEVISION
MSNBC To Stream Local Newscasts (B&C)
Icy After the Sunset (B&C)
Ready to Roll (WSJ)

ADVERTISING
And Now a Word... (WSJ)

TELEPHONY
Ameritech Deal Clears Big Hurdle (ChiTib)
FCC sets dates to open local toll call market (SJ Merc)
Cisco Systems' Assault On the Telephone (NYT)
Speech: And the Winner Is... (NTIA)

INTERNET
US Online Users Surf Internet Six Hours A Week-Poll (SJ Merc)
Can New Technologies Revitalize Old Teaching Methods?
Microsoft Offers Computers for Mortgages (WP)

JOURNALISM
News Media, Police Join Forces Before Supreme Court (ChiTrib)

LIFESTYLES!
This Chicago Classic Makes Itself at Home (ChiTrib)

ONLINE ADVOCACY

FLOOD OF E-MAIL CREDITED WITH HALTING U.S. BANK PLAN
Issue: Online Advocacy
The Federal Deposit Insurance Corporation's (FDIC) proposed "Know Your
Customer" policy (which would require banks to monitor customers' banking
patterns and report inconsistencies to Federal regulators in the name of
detecting potential money-launders) met heavy resistance from online
commenteres and has been withdrawn. The FDIC received 257,000 comments on
the proposal -- about 205,000 (~80%) arrived by e-mail. "It was the nature
and the volume [of the comments]," said Chairman Donna Tanoue. "When
consumers can get excited about an esoteric bank regulation, we have to pay
attention." She added, "Certainly it's been an enlightening chapter for the
FDIC." "That the FDIC allowed their decision to be weighted so heavily by
e-mail is significant," said Jillaine Smith, a senior associate at the
Benton Foundation who tracks public-interest uses of the Internet. "It's
been the sense among advocacy experts that Congress is not ready to be
driven by e-mail efforts." Word of the FDIC's email address and website on
the subject spread through traditional media, talk radio, and an online
advocacy campaign sponsored by the Libertarian Party -- about 83% of the
email sent to the FDIC was done so through the party's advocacy website.
"E-mail can have the impact of a sledgehammer on public policy," said a
party spokesperson. "Obviously, e-mail works to influence public policy if
you do it right. It has to go to an agency that's set up to receive e-mail,
which the FDIC was. It has to be an issue that people care about." See the
Libertarian Party Advocacy site (http://www.defendyourprivacy.com) and
Benton's Advocacy Online site (http://www.benton.org/Practice/Best/advoc.html).
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney (rfr( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/03/cyber/articles/24email.html)

FCC

KENNARD CATCHES HILL
Issue: FCC
Federal Communications Commission Chairman William Kennard's relations with
congressional leaders have steadily deteriorated. Chairman Kennard's
initiatives appear to be out of sync with the deregulatory-minded Congress.
At a hearing last week House Telecommunications Chairman Billy Tauzin (R-LA)
and other lawmakers pledged to strip the FCC of its broad authority to
pursue social policy goals. Rep. Tauzin complains that Chairman Kennard is
"dragging his feet, and in some cases blatantly opposing, the deregulatory
edict of the 1996 Telecommunications Act by pursuing tighter broadcast
ownership restrictions and adding a new 'e-fee' to telephone bills to pay
for wiring schools to the Internet. At the same time, lawmakers say Kennard
has not made enough progress in bringing competition to monopoly-dominated
sectors, such as local cable TV and residential phone service." Although
some lawmakers, including Senate Majority Leader Trent Lott (R-MS), have had
words of support for him and have supported low-power radio and "e-rate"
fees which Chairman Kennard has pushed, some other key lawmakers have been
vocally unhappy. The first round of complaints came after he announced the
FCC would launch a rulemaking into free airtime for politicians.
Congressional leaders claimed that was their province, not the FCC's. The
second round came last fall when reports circulated that the FCC chairman
wanted to tighten broadcast ownership rules. These tempests and rapidly
changing technology have brought on the new wave of interest in FCC reform.
Rep. Tauzin's effort got a big endorsement from House Speaker Dennis Hastert
(R-IL) and undoubtedly will lead to additional hearings on restructuring.
[SOURCE: Broadcasting&Cable (p.8), AUTHOR: Bill McConnell & Paige Albiniak]
(http://www.broadcastingcable.com/)

TELEVISION

MSNBC TO STREAM LOCAL NEWSCASTS
Issue: Cable
As many as 15 NBC affiliates will have streaming live evening newscasts
available next month at the MSNBC site. The initiative is intended to beef
up MSNBC's local news programming links, since that aspect of its online
coverage is one of its biggest draws, according to General Manager John
Nicol. Although most of the original affiliates will be NBC owned and
operated stations, MSNBC.com expects to expand the service to other NBC
affiliates. The service is likely to be placed in the expanded video portal
area of MSNBC. http:// http://www.msnbc.com/news/default.asp
[SOURCE: Broadcasting&Cable (p.45), AUTHOR: Richard Tedesco]
(http://www.broadcastingcable.com/)

ICY AFTER THE SUNSET
Issue: Cable
The end of March will bring an end to federal cable rate regulation (except
for cable's most basic service) imposed by the 1992 Cable Act. Observers
expect competition and continued oversight by Congress will help
avoid large rate increases, at least in the near term. For now, cable
operators say to increase income they will depend on new revenue streams by
launching new products, including high-speed Internet and telephone service.
Cable rates have been creeping up. Critics arguing to keep or reimpose
rate regulation point to the cumulative effect of rate increases over time
which have far exceeded the annual inflation rate. Last year the increase was
about 9% nationally. In 1999 the National Cable Television Association
expects rates to rise about 5%. Competition to cable's traditional services
is growing. Satellite (DBS) service has grown to 10 million subscribers.
Ameritech is pursuing the subscription video market. GTE and BellSouth are
hoping terrestrial wireless technology can be a competitor.
[SOURCE: Broadcasting&Cable (p.38), AUTHOR: Price Colman & John M. Higgins]
(http://www.broadcastingcable.com/)

READY TO ROLL
Issue: Cable TV
Over the past three years, the nation's cable-TV operators have invested
more than $20 billion to upgrade their coaxial cable-TV lines to digital,
installing miles of fiber-optic cables and fancy new electronics capable of
handling a plethora of new digital fare. The National Cable Television
Association estimates that about 86% of America's cable systems will be
digital-capable by the end of the year. Comcast is offering digital cable as
a separate programming package for about $10/month and is getting what
company officials consider a very strong response. For the extra $10, most
customers get 150 channels or more that include dozens of movie and
pay-per-view choices, an array of music channels and digitized versions of
their favorite networks. The digital cable requires new set top boxes in the
home, but they typically cost about $3/month to lease, roughly the same as
their analog cousins. The new boxes and digital compression technology give
consumers more choice. The average cable-TV company today offers 63
channels; most digital systems offer close to 200. On-screen TV guides help
customers navigate their choices, let viewers make payments for pay-per-view
events, set "pop-up" electronic reminders of coming programs, let parents
lock out channels they don't want their children to watch, and allow cable
companies to send message to consumers about upcoming programs. Later this
year Diva Systems Corp. plans to expand its capability for true
video-on-demand. Ask for a movie and it starts. While cable companies appear
generally supportive of HDTV, few are willing to say when they expect to
begin carrying it on dedicated channels, in part because there is a dearth
of HDTV programming available. Cable companies hope their transition to
digital and expansion of program offerings will allow them to compete with
direct-broadcast-satellite (DBS) companies. DBS
companies counter that buying satellite TV these days is just as easy as
buying regular cable and their current "local TV" problem should be solved
in the near future.
[SOURCE: Wall Street Journal (R10 on 3/22), AUTHOR: Leslie Cauley]
(http://wsj.com/)

ADVERTISING

AND NOW A WORD...
Issue: Advertising
A trial by At Home is offering direct commercial response or additional
information to advertisements to about 330,000 households across the US and
Canada. At Home offers quick, cable-modem links to the Internet allowing
viewers to get information on products they have just seen on television. At
Home charges advertisers as much as $150 per 1,000 viewers, a rate nearly 10
times beyond the usual fees for television or Internet advertising. And
major companies are responding. James Nail, an advertising analyst at
Forrester Research, says don't expect too much too fast. Lots of "ifs"
remain. High-speed broadband access still must be installed for the masses,
the public must be convinced to use the service, and advertisers must be
convinced people will look at their messages.
[SOURCE: Wall Street Journal (R8 on 3/22), AUTHOR: George Anders]
(http://wsj.com/)

TELEPHONY

AMERITECH DEAL CLEARS BIG HURDLE
Issue: Mergers
The US Department of Justice approved the takeover of Ameritech by SBC
Communications. One of four regulatory bodies that must approve the merger
(along with the FCC and state commissions in Ohio and Illinois), the DoJ
ruled that the merger is not anticompetitive. [Of course, it all depends on
how you define 'competitive.'] The focus turns to the ICC now. "This
heightens the responsibility of the ICC because the state law gives it very
broad authority to act in the interests of Illinois consumers," said Terry
Barnich, a former ICC chairman. "I think ultimately the deal will go
through, because the Illinois commissioners don't want to stand in the way
of the merger happening, but they do want to impose conditions that will
protect rate payers and encourage competition." The merger is valued at $60
billion. Consumer advocates oppose the merger, but were not entirely
surprised by the DoJ's announcement: "Justice takes a national view and
doesn't look at any individual state the way the Illinois Commerce
Commission is required
to," said Martin Cohen, executive director of the Illinois Citizens Utility
Board. "This action by Justice wasn't unexpected, but the ICC is still bound
by Illinois law, which sets a high standard for SBC to meet."
[SOURCE: Chicago Tribune (Sec 1, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,ART-25572,00.html)

FCC SETS DATES TO OPEN LOCAL TOLL CALL MARKET
Issue: Telephony
A Federal Communications Commission order Tuesday sets dates for dominant
local phone companies to open the local toll calling area to competition.
(Local toll calls are those made to a number outside a customer's unlimited
local calling area and at least 12 miles away but not far enough to qualify
as long-distance calls.) Currently local toll calls are carried
automatically by the local phone company unless the customer uses a
seven-digit access code, such as the popular "10-10" numbers. Under the
FCC's order, phone companies will have to let customers choose their local
call carrier as easily as they do their long distance company. According to
the order, carriers whose plans have been approved by a state commission
must allow consumers to choose who carries their toll calls without dialing
extra digits by May 7. Those who have not filed plans must do so by April
22; states have until June 22 to review and approve plans and carriers must
implement them within 30 days.
[SOURCE: San Jose Mercury News, AUTHOR: Deborah Kong]
(http://www.mercurycenter.com/svtech/news/indepth/docs/toll032499.htm)

CISCO SYSTEMS' ASSAULT ON THE TELEPHONE
Issue: Internet Telephony
Cisco systems, like many communications companies, is gearing up to provide
telephone calls over the Internet. They dream of one day making traditional
phone systems extinct. One of the largest obstacles that Cisco and others
face in deploying Internet telephony is the struggle to set standards for
voice calls over Internet protocol (IP). In fact, almost none of the
different existing systems work with one another. Other challenges to
greater acceptance for IP is its unreliability and low sound quality. While
Internet telephony is not yet ready for the mainstream, many predict that it
will soon be embraced by companies who want to save money by transmitting
calls on their preexisting networks. "For consumers, it's probably going to
mean cheaper costs. The consumer is going to be using voice-over-I.P.
without even knowing it," said Howard Anderson, managing director of a
high-technology consulting firm.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/03/biztech/articles/24place.html)

SPEECH: AND THE WINNER IS...
Issue: Competition
Remarks by Larry Irving at the First Annual Competitive Local Access
Conference, March 22, 1999: This year, we've seen a tremendous growth of new
players, new technologies, and new services and products on the market. The
choices for consumers are vast, and keep growing. What if you want to
contact your child at college, at the airport, or on the playground? Today
you have a range of options. You can use e-mail, a cell phone, or a
traditional telephone. But the options don't end there. If you're e-mailing,
you can do it over a PC, a Web TV, a Net phone, or a wireless laptop. If
you're using wireless, you can use a digital or analog cellular or PCS
device. Or you can use a dual mode device and switch back and forth between
digital and analog. And even the plain old telephone is no longer just a
plain old telephone. Your calls may be carried over traditional copper wire
or cable, or fiber, or even over the Internet if you're using Internet
telephony. And, this doesn't even begin to cover the range of options that
are available. These types of developments are changing the lives of
hundreds of thousands of consumers and businesses. They deserve as much
recognition as any blockbuster movie, and for that reason I'd like to begin
the awards ceremony. Awards include: 1) Best Screenplay - The
Telecommunications Act, 2) Best Director - The Recent Supreme Court
Decisions, 3) Best Actor - The Emerging Competitors, and 4) Best Picture - A
Connected Society
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/speeches/icm32299.htm)

INTERNET

US ONLINE USERS SURF INTERNET SIX HOURS A WEEK-POLL
Issue: Internet
Are you an average online computer user? If so, Louis Harris and Associates
say you surf the Internet six hours per week. The poll released Tuesday
surveyed over 2,000 adult during February. The Internet total did not
include time spent sending and receiving e-mail, but the survey concluded
that e-mail use continues to climb. Sixty-three percent of online users
send or receive e-mail "often," a 10% jump since September 1998. Other
popular activities: conducting research for work or school (39%) and online
shopping (31%). Sixty-two percent of those surveyed used a computer an
average of 15 hour per week.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/002315.htm)

CAN NEW TECHNOLOGIES REVITALIZE OLD TEACHING METHODS?
Issue: EdTech
In a new Educause (http://www.educause.edu/) publication, Dancing With the
Devil, Lehigh University President and technology enthusiast Gregory
Farrington (http://www.Lehigh.EDU/news/president/biography.html) argues
there is little chance that technology will mean the closing of campuses any
time soon. Most distance learning schools, he notes, are targeted at working
adults, not 18-22 year-olds. For the younger crowd, Mr. Farrington thinks
the Internet and technology can mean a revitalization of education -- if
faculty and administrators use it correctly and do not see it as a threat.
"We've become a bit monopolistic, a bit complacent," Farrington said
recently. "We've put too little of our energy into focusing on the challenge
of how we create the most effective learning environment at the
undergraduate level. We know how we want to teach. We too seldom discuss how
do students best learn." Farrington believes the Internet could prove a
valuable way not just to deliver information but to explain concepts as
well. But there is no replacing face-to-face interactions, Farrington argues
-- true understanding requires conversation.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels (mendels( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/03/cyber/education/24education.html)

MICROSOFT OFFERS COMPUTERS FOR MORTGAGES
Issue: E-Commerce
Remember banks and free toasters? The same concept is coming to cyberspace.
Microsoft said yesterday it would offer free Consentric Systems personal
computers to at least the first 1,000 borrowers who close a home loan for
more than $125,000 on its online HomeAdvisor real estate site. The computer
has limited power and memory and carries a value of $900. Smaller loans can
get 300 borrowers a Casio PV-200 computer that retails for $132. Microsoft
hopes the giveaway will jump-start its entry into the online loan and
mortgage market. Bob Garfield, a columnist for Advertising Age magazine,
said, "People historically have made some very bad financial decisions on
the basis of a toaster-oven."
[SOURCE: Washington Post (E3), AUTHOR: Mark Leibovich]
(http://www.washingtonpost.com/wp-srv/business/daily/march99/mortgages24.htm)

JOURNALISM

NEWS MEDIA, POLICE JOIN FORCES BEFORE SUPREME COURT
Issue: Journalism
Two cases involving journalists accompanying law enforcement officials
serving warrant have reached the Supreme Court. At stake here is a balance
between a person's right to be free from unreasonable intrusions vs the
media's interest in reporting issues of public concern. Civil rights groups
like the ACLU say the police overstepped their bounds by bringing
journalists into homes while serving warrants. On the other side are law
enforcement officials and media companies -- including the Tribune Company
-- which emphasize the public interest in having journalists accompany
police. [How else, you might wonder, would we have shows like Cops?] This
side argues that the practice opens an important government function open to
public scrutiny.
[SOURCE: Chicago Tribune (Sec 1, p.4), AUTHOR: Jan Crawford Greenburg]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9903240103,00.html)

LIFESTYLES!

THIS CHICAGO CLASSIC MAKES ITSELF AT HOME
Issue: Lifestyles!
The biggest major sport with the least media coverage -- I'm talking 16"
softball, of course -- will become a boys varsity support this fall in
Chicago public schools. Chicago is the birthplace of this most democratic
sport played without gloves by 10 players aside swatting at high-arching
pitches. The sports patron saint, columnist Mike Royko, smiles down on the
city once again. 48 high schools will field teams later this year. The game
requires less equipment and also less space than baseball -- bases are 60'
apart instead of 90' and the bigger ball does not travel as far.
[SOURCE: Chicago Tribune (Sec 1, p.1), AUTHOR: Bob Sakamoto]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9903240095,00.html)

--------------------------------------------------------------