Communications-related Headlines for 4/24/98

Digital TV
NYT: Broadcast and Cable Interests Debate Rules for Digital TV

Telephony
NYT: Cellular Phone Groups to Sue Over Wiretapping Regulations
WSJ: GAO Delivers Blistering Report on FCC As Enforcer in Stopping

FCC
FCC: Commissioner Tristani Builds Relationships with Latin American
Regulators
WSJ: FCC to Deregulate a Large Portion of Comsat Business

Antitrust
WSJ: Microsoft Subject of New Antitrust Probe
WSJ: In the Microsoft Endgame, a Puzzle
WSJ: FTC Sets Conditions to Support Digital-Intel Agreement on Chip

Technology
WP: A Computer Made for the "Barney" Crowd
WP: U.S. Chamber Is Leaving TV for Internet

** Digital TV **

Title: Broadcast and Cable Interests Debate Rules for Digital TV
Source: New York Times (C4)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/24hdtv.html
Author: Joel Brinkley
Issue: Digital TV
Description: At a congressional hearing yesterday, presidents of the largest
companies in the television industry "sparred" over whether cable companies
will be required to carry the digital TV programs that broadcasters will
begin airing this fall. The cable industry is strongly opposed to the idea,
but broadcasters contend that a "must-carry" rule for digital signals is
essential. "A swift and successful transition to digital TV requires that
cable subscribers have easy access to DTV broadcast signals," Scott Sass,
president of NBC Television Stations, told the House Subcommittee on
Telecommunications. Leo J. Hindery, president of Tele-Communications Inc.,
the nation's largest cable company, asked, if cable companies are forced to
make room for digital signals, "Which services should we drop? Th Family
Channel? Black Entertainment Television? C-Span? I cannot stress how
important this is to us." This issue also is important to the Federal
Communications Commission who loaned every television station in the country
a second channel to be used for digital broadcasts. At the end of the
transition period, one of the channels has to be returned at which time it
will be auctioned off. The income generated from those auctions has already
been counted in the balanced budget plan. This helps to explain why Rep.
W.J. "Billy" Tauzin (R-LA), chairman of the subcommittee, opened the hearing
by asking, "Will cable take HDTV away from us?"

** Telephony **

Title: Cellular Phone Groups to Sue Over Wiretapping Regulations
Source: New York Times (C2)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/24phone.html
Author: John Markoff
Issue: Privacy
Description: The Cellular Telecommunications Industry Association and the
Personal Communications Industry Association plan to file a lawsuit today in
an effort to "narrow" the Government's interpretation of 1994 legislation
intended "to help law enforcement agencies listen in on the phone calls of
suspected criminals." Civil liberties advocates and cellular telephone
industry executives contend that the FBI is requesting regulations under the
1994 law that would give the agency expanded wiretapping powers while
forcing consumers to pay for the broad new surveillance features through an
increase in rates. The lawsuit comes a month after the FBI and the Justice
Dept. discontinued negotiations with industry executives over wiretapping
capabilities and who would pay for the increased modifications that the
Government contends is necessary to effectively fight criminals in this
digital era.

Title: GAO Delivers Blistering Report on FCC As Enforcer in Stopping
'Slamming'
Source: Wall Street Journal (B10)
http://www.wsj.com
Author: Elizabeth Daerr
Issue: Telephone Regulation
Description: Government auditors said that the FCC isn't moving
aggressively enough to crack down on companies that illegally switch
consumers' long-distance phone service, saying that states have been much
better at enforcing anti-slamming regulations. FCC Chairman William Kennard
said that his agency is working to eliminate economic incentives for
slamming including absolving slammed customers from paying the
long-distance carrier if the consumer catches an unauthorized switch within
a certain time period.

** FCC **

Title: Commissioner Tristani Builds Relationships with Latin American
Regulators
Source: FCC
http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1998/nrmc8029.html
Issue: International/Universal Service
Description: At the Fourth Annual Latin American Telecommunications Summit,
in San Carlos de Bariloche, Argentina, Commissioner Gloria Tristani
represented the Federal Communications Commission (FCC) by "encouraging
regulatory reform in the transition from monopoly service to privatization
and open competition. Tristani led a discussion among four of the region's
regulatory leaders; Carlos Casasus, Chairman of the Mexican Federal
Telecommunications Commission (COFTEL); Roberto Catalan, Chairman of the
Argentine National Communications Commission (CNC); Jorge Kunigami, Chairman
of the Peruvian Supervisory Agency of Investment in Telecommunications
(OSIPTEL); and Rosella Cominetti, Chief of Economic Regulation for the
Chilean Under Secretariat of Telecommunications (SUBTEL)." Tristani said,
"Privatization, liberalization, and competition are the norm and the
expectation. Consumers in our countries are starting to reap the benefits of
this transformation in thought and in action." Discussing regulatory
reform, Tristani "underscored the opportunity and responsibility of
regulators to promote universal service through explicit and market-based
mechanisms. Tristani praised Peru and Chile, observing that their innovative
approaches 'demonstrate that developing countries can promote universal
service and competition hand-in-hand.'"

Title: FCC to Deregulate a Large Portion of Comsat Business
Source: Wall Street Journal (B10)
http://www.wsj.com
Author: John Simons
Issue: FCC Regulation
Description: The FCC is expected to declare Comsat Corp. a "nondominant"
telecommunications carrier in most of its markets, essentially deregulating
a large portion of the satellite company's business. The company
successfully argued that its status as sole satellite middleman didn't
really give it market advantages because many other forms of competition
exist. The FCC will continue to regulate Comsat's activities in those
developing nations where few alternatives to satellite-based communications
exist.

** Antitrust **

Title: Microsoft Subject of New Antitrust Probe
Source: Wall Street Journal (A2)
http://www.wsj.com
Author: John R. Wilke
Issue: Antitrust
Description: The battle between Netscape and Microsoft has reached the
Department of Justice yet again. Netscape is claiming that high level MS
executives attended a May 1995 meeting in an effort to invest in Netscape
or threaten to withhold the necessary information the company would need to
build a Windows-compatible version of its browser. In addition, Netscape
claims Microsoft sought to convince Netscape to market their browser
software only
for non-Windows operating systems. Microsoft claims they were just on a
fact-finding mission. Quotable quotes: "It was like a visit from Don
Corleone; I expected to find a bloody computer monitor in my bed the next
day," Marc Andressen, EVP & Co-Founder, Netscape. "I can categorically say
that we did not at any time suggest dividing up any market, period."

Title: In the Microsoft Endgame, a Puzzle
Source: Wall Street Journal (B1)
http://www.wsj.com
Author: David Bank
Issue: Antitrust
Description: The net impact of the Department of Justice's case against
Microsoft for requiring PC makers to include Internet Explorer in operating
systems may indeed be zero unless the federal government decides to get
into price setting, something it wants to avoid. Because Microsoft intends
to charge the same price for its Windows 95 (and upcoming Windows 98)
operating system with or without Internet Explorer, a law suit that doesn't
address the pricing issue wouldn't do much to curtail Microsoft's marketing
power.

Title: FTC Sets Conditions to Support Digital-Intel Agreement on Chip
Source: Wall Street Journal (B10)
http://www.wsj.com
Author: Jon G. Auerbach
Issue: Antitrust
Description: Citing concerns over Intel Corp.'s control of the
microprocessor market, the Federal Trade Commission required Digital
Equipment Corp. to find other partners to make its speedy Alpha chip as a
condition for approving a patent settlement between Intel and Digital.
Digital confirmed it had reached a memorandum of understanding with
Advanced Micro Devices Inc. and is in negotiations with IBM. Intel controls
about 90 percent of the processor market. Another wrinkle is Compaq Computer
Corp.'s proposed purchase of Digital. Compaq is the world's largest
personal computer maker, and most of its products run on Intel chips.

** Technology **

Title: A Computer Made for the "Barney" Crowd
Source: Washington Post (F1,F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-04/24/077l-042498-idx.html
Author: Paul Farhi and Frank Swoboda
Issue: Computer Technology
Description: Toymaker, Little Tikes Co. and International Business Machines
Corp. have teamed up to offer a $2,399 personal computer system made into a
child-sized purple-and-yellow plastic disk. In addition to "age-appropriate
software titles" such as "Millie's Math House," the PC comes with a keyboard
able to withstand apple- and grape-juice spills. The "Young Explorer" is
apparently the first computer created for the "Barney" crowd. It is
introduced at a time, however, when the scientific community is just
beginning to study "the long-term health effects on children who use
keyboards from an early age." There is growing concern about the possible
physical harm to children in using keyboards, specifically repetitive stress
injuries, said Daryl Alexander of the American Federation of Teachers -- to
date, most injury information is "anecdotal." IBM spokeswoman Stacey Pena
points out that the Young Explorer was designed with kids in mind and the
keyboard was developed at a child's level, minimizing arm strain. Michele
Riggs, the IBM executive who dreamed up this idea after watching her son
play with computers at his preschool, said, "We see a real market
opportunity for this anywhere kids go to have fun and play."

Title: U.S. Chamber Is Leaving TV for Internet
Source: Washington Post (F4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-04/24/073l-042498-idx.html
Author: Beth Berselli
Issue: Internet Use
Description: The U.S. Chamber of Commerce announced yesterday that "it is
leaving broadcasting for cybercasting in an effort to better inform and
rally its members and influence government officials on their behalf." Carl
Grant, a senior vice president of the nation's most powerful lobbying group,
said the Internet will play a key role in their "beefed-up" advocacy effort.
Grant said that the Washington-based group plans to quickly expand its
online programming. For example, next month, the group will offer live
audio-video broadcasts of a global climate conference. Chamber officials
said that money previously used on television programs will now be
redirected to other areas of the organization, where it will be used "to
support the groups primary mission of legislative advocacy for its
approximately 200,000 members."
*********
TV Turnoff Week is April 22-28. This is a national, collective attempt to
save our most precious resource: the sanctity of our own minds. Why not
rebel against internal brain-drain and unplug the box (or boxes) for a week?
To learn more about accessing your imagination and not some media moguls
idea of what that should be, check out TV-Free America's, National TV
Turnoff Week site at: http://www.tvfa.org/turnoff.html