Communications-related Headlines for 3/9/99

TELEPHONY
Not the Only Game in Town (ChiTrib)
AT&T Lifts Its Rates on 15 Services, In Move to Promote
Telecom Bundles (WSJ)
Telephone Service for Indians on Reservations (FCC)
Speech: Tristani at NM State University Regulatory
Issues Conference (FCC)

INTERNET
New Models Rein In Cost of Internet Access
Journalist Sentenced to 18 Months in Internet Pornography Case
New HP Unit Will Focus on Net Business (SJ Merc)
Financial Firm Sues Internet Users For Slander (SJ Merc)
Microsoft, Hongkong Telecom to Deal (WP)

MASS MEDIA
Newspaper Ad Spending Meets Expectations (ChiTrib)
Media Face Charges That They're Part of the Problem (ChiTrib)
NBC Expands Olympics Coverage by Including CNBC and MSNBC (WSJ)

TELEPHONY

NOT THE ONLY GAME IN TOWN
Issue: Competition
A look at a couple of local phone companies that are competing with
Ameritech in the Chicago area. These small companies are relying on word of
mouth to spread the word on their available service -- they are not sure
they could handle a large flux of customers. When a customer decided to
leave Ameritech, the copper lines that connect their address to an Ameritech
central office must be severed and reattached to the competitor's equipment
[unless they go wireless, of course, Dave Hughes]. This process takes about
ten days. Customers report that the quality of service is better on the
competitors' service as these companies are using newer equipment than
Ameritech.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-24698,00.html

AT&T LIFTS ITS RATES ON 15 SERVICES, IN MOVE TO PROMOTE TELECOM BUNDLES
Issue: Telephony
As AT&T's merger with TCI is expected to close today, AT&T is raising prices of
15 different services, when they are purchased individually. "The rate changes
underline AT&T's determination to offer the best discounts to tech-savvy and
loyal customers who sign up for plans that provide wireless, long-distance and
calling cards in one package," Blumenstein reports. Here's the comparison: A
person who signs up for AT&T's Personal Network pays $29.99 a month for a
calling card, wireless and long distance rates of 10 cents a minute with no
service charge. Customers who don't purchase the package will pay 95 cents for
using their calling cards and 55 cents a minute for the call. People who use
the operator to make a calling card call, without dialing a AT&T's 800-access,
will pay $3.45 per call plus per minute charges. Fees for other services, such
as operator assistance and third-party calls are also increasing by 17%. An
AT%T spokesman said they are making it cheaper for their loyal customers who
save them from spending more money on marketing.
[SOURCE: Wall Street Journal (B6), AUTHOR: Rebecca Blumenstein]
http://wsj.com/

TELEPHONE SERVICE FOR INDIANS ON RESERVATIONS
Issue: Universal Service/Minorities
FCC to Hold Second Public Hearing in Series on Telephone Service for Indians
on Reservations; Set for March 23 in Chandler, Arizona. This hearing will
continue to examine the ongoing concern that Indians on reservations, in
comparison to other Americans, have less access even to basic telephone
service. The hearing will provide an opportunity for Indian tribal and
intertribal leaders, federal and state officials, telecommunications
services providers, and technology experts to present testimony addressing
the steps necessary to provide all Indians on reservations with the
opportunity to obtain telephone service of sound quality at affordable
rates. At the hearing, the FCC will continue to study the reasons for the
lack of telephone service and will examine what solutions have been
undertaken by tribes and service providers to address these issues. The
Commission also intends to gather evidence on measures that tribes, service
providers, the FCC, and states can take in the future to improve access to
affordable telephone service on Indian reservations. For further
information, contact Eric Jensen, at (202) 418-0990 or via e-mail at
ejensen( at )fcc.gov, at the Office of Communications Business Opportunities; or
Belford Lawson, at (202) 418-7264 or via e-mail at blawson( at )fcc.gov, at OCBO;
or William Kehoe, at (202) 418- 7122 or via e-mail at bkehoe( at )fcc.gov, at the
Common Carrier Bureau.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/OCBO/da990430.html

SPEECH: TRISTANI AT NM STATE UNIVERSITY REGULATORY ISSUES CONFERENCE
Issue: Universal Service/Rural
March 8, 1999 Remarks of Commissioner Gloria Tristani before the New Mexico
State University Regulatory Issues Conference. "[T]he title of this panel is
'Issues Facing Rural Companies *and Their Customers.*' At the FCC, it's easy
to forget that we work for the American people, not the multibillion-dollar
companies that lavish their attention on us. In my job, I try to remain
focused on consumers and how each decision I make will affect the average
consumer. As I confront policy decisions affecting rural companies, it's a
little easier for me to remember that my work directly affects rural
Americans simply because I'm from a rural state." Commissioner Tristani
addresses: 1) Public Policy Should Reflect Unique Circumstances of Rural
LECs, 2) Upcoming Universal Service Decisions That Will Affect Rural
Companies, and 3) Prospects for Success of FCC's Universal Service Policies
for Customers of Rural Carriers.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Tristani/spgt903.html

INTERNET

NEW MODELS REIN IN COST OF INTERNET ACCESS
Issue: Internet/Access
In Europe, some companies have begun experimenting with Internet service
that is free from monthly fees. Internet service providers are able to waive
monthly charges by teaming up with telecom operators to share in revenues
from local Internet dial-up calls. All over Europe, local calls, including
Internet access, are charged per minute and can be very expensive. One of
the first Internet companies to explore free Internet access was Freeserve
of Britain which has signed up over 1.35 million users in the last five
months. Freeserve's primary revenue comes from sharing local access charges
with the telecom operator. In the US, of course, this model could work
because local calls are generally free.
[SOURCE: CyberTimes, AUTHOR: Bruno Giussani]
http://www.nytimes.com/library/tech/99/03/cyber/eurobytes/09eurobytes.html

JOURNALIST SENTENCED TO 18 MONTHS IN INTERNET PORNOGRAPHY CASE
Issue: Journalism
Larry Matthews, an editor for National Public Radio, was sentenced to 18
months in prison for distributing child pornography over the Internet.
Matthews, who claimed to have been researching an article on child
pornography, pleaded guilty to federal charges of transmitting and receiving
material that contained images of minors engaged in sex acts. In sentencing
Mr. Matthews, Judge Alexander Williams said that his first amendment rights
as a journalist could not justify his actions. "The law is clear that a
press pass in not a license to break the law."
[SOURCE: New York Times (A14), AUTHOR: Michael Janofky]
http://www.nytimes.com/
See Also:
REPORTER GETS 1 1/2 YEARS FOR CHILD PORN
[SOURCE: Washington Post (B1), AUTHOR: Craig Whitlock]
http://www.washingtonpost.com/wp-srv/local/daily/march99/sentence9.htm

NEW HP UNIT WILL FOCUS ON NET BUSINESS
Issue: Electronic Commerce
Behind in the booming business of selling software, hardware and support
services to companies that want to engage in business over the Internet,
Hewlett-Packard Co. plans to announce today the creation of an Internet
business unit. The announcement of a $150 million ad campaign reshaping its
image follows a string of announcements of partnerships and joint ventures
in recent days as HP makes a late but determined effort at Internet
commerce. Joe Beyers, who will head the new unit, said it plans to sell not
only to companies but also, eventually, to individuals. The new unit will
pull together disparate businesses and will be composed of five groups,
focusing on: the software infrastructure for e-business, Internet security,
Internet appliances (the VeriFone division), e-commerce software and
e-business packages for vertical industries, such as banking or manufacturing.
[SOURCE: San Jose Mercury News, AUTHOR: Monua Janah]
http://www.mercurycenter.com/svtech/news/indepth/docs/hp030999.htm

FINANCIAL FIRM SUES INTERNET USERS FOR SLANDER
Issue: Privacy
Wade Cook Financial Corp. of Seattle filed a slander suit in federal court
against 10 anonymous users of a bulletin board at Internet gateway Yahoo! and
expects to subpoena Yahoo! to hand over the real names of the users. The
lawsuit comes as debate grows over Internet privacy, with users fretting
about how to protect their identities from prying eyes, and companies
complaining about the ease with which rumors spread over the global computer
network. At the Yahoo! website, users can post messages on the bulletin
boards, get news and financial information, send e-mail and enter chat
rooms. In a January message posted at the portal, one of the ten users named
in the suit claimed the company's founder, Wade Cook, had been arrested for
accepting kickbacks. The company denies the allegation. Cook's attorney
Paul Anderson said, "These John Does are using the anonymity afforded by the
Internet to damage the reputation and undermine the business of a legitimate
company."
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
http://www.mercurycenter.com/svtech/news/breaking/internet/docs/218898l.htm

MICROSOFT, HONGKONG TELECOM TO DEAL
Issue: Electronic Commerce
Hongkong residents will be getting more movies and other home entertainment
via computer. The joint venture will use Microsoft's software and Hongkong
Telecom's infrastructure to offer customers online rentals of videos,
music, news and interactive games. Hongkong Telecom already offers
subscribers Internet services including home banking, home shopping and
videos and music on demand. The Tuesday announcement did not include the
planned investment for the project or when the new services would be
available. Microsoft chairman Bill Gates is in China angling for a stronger
presence in China. He is scheduled to sign an agreement with six mainland
Chinese computer companies to bring movies and Internet services to
additional mainland television viewers later in the week. The
government-sponsored project will use advanced software developed in
Microsoft's new research center in Beijing.
[SOURCE: Washington Post (Online), AUTHOR: Marcos Calo Medina]
http://www.washingtonpost.com/wp-srv/WAPO/19990309/V000377-030999-idx.html

MASS MEDIA

NEWSPAPER AD SPENDING MEETS EXPECTATIONS
Issue: Newspapers/Advertising
Newspaper ad spending rose 6% last year -- climbing to $43.9 billion.
Economists watch the figure as a indicator of the nation's economic
strength. The 6% rise was expected; forecasts for 1999 chart a 5% increase
in ad spending. Economists and newspaper executives have been expecting a
softening in the classified ad market and some think that the figures
released Monday may indicate a slowing down of the economy in the coming months.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Tim Jones]
http://chicagotribune.com/textversion/article/0,1492,SAV-9903090214,00.html

MEDIA FACE CHARGES THAT THEY'RE PART OF THE PROBLEM
Issue: Media
As part of a feature on sports and gambling, Sherman examines the role of
the media. Newspapers print Las Vegas-style betting lines, television
personalities pick teams based on the point spread, and radio stations do
special broadcasts from Las Vegas venues. Critics contend these decision put
gambling in the mainstream, accessible to youngsters. Much of the article
reflect's the Tribune's own approach to gambling: the paper does print
betting lines, but does not accept ads from betting services. The paper's
staff has talked about discontinuing the betting lines.
[SOURCE: Chicago Tribune (Sec 1, p.8), AUTHOR: Ed Sherman]
http://chicagotribune.com/

NBC EXPANDS OLYMPICS COVERAGE BY INCLUDING CNBC AND MSNBC
Issue: Television Economics
NBC plans to broaden its capability to advertise during the Olympics by
offering coverage of the games on CNBC and MSNBC, NBC executives said
yesterday. They hope the plan will entice cable operators to pay more for
getting CNBC and MSNBC as they have been enjoying rating boosts. The two NBC
cable channels would cover the games during the day and return to regular
programming as NBC picks up the coverage during prime-time. David Zaslav,
president of cable distribution for NBC, says it will be similar to
pay-per-view plan for the Olympics in 1992, but people who subscribe to cable
will get it as part of their subscription. NBC affiliate stations are not
likely to be enthusiastic about the plan, Pope reports. Many station owners
have criticized cross promoting between NBC and its cable channels, saying that
it takes viewers away from their local broadcasts. NBC President, Robert
Wright, says the affiliates have known about the plan since NBC won the rights
to broadcast the Games and says affiliates understand their need to broaden
their ad base for the Olympics.
[SOURCE: Wall Street Journal (B18), AUTHOR: Kyle Pop]
http://wsj.com/

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Time to pull out your Les Brown, Ernest Hemingway and Paul Simon and tip
your cap to Joltin' Joe.