ADVANCED SERVICES
Advanced Telecommunications Capability (FCC)
MERGERS
FCC Chief Questions Phone Merger (ChicagoTrib)
In a Blink, CBS Changes Its Makeup (ChicagoTrib)
Yahoo Deal Makes More Internet Giants (WP)
INTERNET
Time to Divorce Your ISP? Here's How to Decide (AnchorDesk)
TELEVISION CONTENT
Courtroom Broadcasts (NYT)
SATELLITE
FCC Approves Satellite TV Deal (WP)
SPECTRUM
In New York, FCC and Pirate Broadcasters Play Cat and Mouse (WP)
Spectrum Management En Banc Hearing (FCC)
FCC
FCC Announces Formation of the Technological Advisory Council (FCC)
JOBS
Help Wanted (SJ Merc)
ENCRYPTION
Senator Ends Opposition to Encryption Software Exports (NYT)
ADVANCED SERVICES
ADVANCED TELECOMMUNICATIONS CAPABILITY
Issue: Broadband
FCC Releases Order on Deployment of Wireline Services Offering Advanced
Telecommunications Capability (CC Docket No. 98-147, FCC 99-48). From the
Order: One of the fundamental goals of the Telecommunications Act of 1996 is
to promote innovation and investment by all participants in the
telecommunications marketplace, in order to stimulate competition for all
services, including advanced services. In this order, we take important
steps towards implementing Congress' goals with respect to advanced
services....We adopt, in this order, additional measures to further
facilitate the development of competition in the advanced services market.
First, we strengthen our collocation rules to reduce the costs and delays
faced by competitors that seek to collocate equipment in an incumbent LEC's
central office .... Second, we adopt certain spectrum compatibility rules
and adopt a Further Notice of Proposed Rulemaking (Further NPRM) to explore
issues related to developing long-term standards and practices for spectrum
compatibility and management. Finally, in the Further NPRM, we consider
whether we should require LECs to allow competitors to offer advanced
services to end users over the same line on which the LEC is offering voice
service.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99048.txt)
MERGERS
FCC CHIEF QUESTIONS PHONE MERGER
Issue: Mergers/Telephony
"As you know, the Communications Act requires that the Commission determine
whether the proposed merger is in the public interest and, at this stage, I
have serious concerns about whether your proposal satisfies this
requirement," FCC Chairman Bill Kennard wrote to Richard Notebaert,
Ameritech's chairman, and Edward Whitacre Jr., chairman of SBC, about the
proposed SBC-Ameritech merger. "I have asked the Commission's staff to
explore with you and other parties, on a cooperative and public basis,
whether it would be possible to craft conditions that address the public
interest concerns." In a surprise letter sent to the two companies
yesterday, Chairman Kennard indicated that the merger will face a tough
review before being approved. "The timing of Kennard's letter is
interesting, coming on the heels of a bad recommendation by the ICC's
hearing examiners," said Robert Ruiz, chief of the public interest bureau of
the Cook County state's attorney. "Kennard is taking these companies to task
about whether this merger has sufficient protection for consumers. You could
read into it that the FCC chairman is signaling the ICC that the conditions
proposed so far aren't enough," Mr. Ruiz said. The Citizens Utility Board
will file a petition with the ICC asking it to take official notice of
Kennard's letter in an effort to underscore the potential damage to
consumers posed by the SBC-Ameritech merger, said Jonathan Goldman, CUB
director of policy and governmental affairs. "The FCC chairman is raising
the same points that we raised and that were raised by the ICC staff," said
Mr. Goldman. "These are the points that the Illinois hearing examiners
completely discarded. The FCC letter's language is so strong, it suggests
they may well reject the merger if conditions to protect the public cannot
be found."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,ART-26385,00.html)
See also:
F.C.C. CHIEF'S LETTER RAISES CONCERN ON MERGER PLANS
Issue: Merger
In a letter to the chairmen of Ameritech and SBC Communications, FCC
Chairman William Kennard indicated that the commission would have difficulty
approving their proposed merger without conditions. "Among the actions which
the commission could take are to set your application for a full hearing or
to approve it with conditions," wrote Chairman Kennard. While the Department
of Justice approved the merger with no conditions last week, the FCC chief
expressed that "at this stage, I have serious concerns" as to whether the
deal would serve the public interest. The Commission wants assurance that
the consolidated local telephone companies will open their networks to
competitors.
[SOURCE: New York Times (C2), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/yr/mo/day/news/financial/phone-merger.html
IN A BLINK, CBS CHANGES ITS MAKEUP
Issue: Mergers/Television
"This is a huge deal for us," said Mel Karmazin, CEO of CBS Corp. "Karmazin
effectively bought himself the second network he's wanted to buy," said
Christopher Dixon, an entertainment
industry analyst at PaineWebber. In a $2.5 billion stock deal, CBS will
purchase King World Productions, distributor of popular syndicated programs
like Wheel of Fortune and Jeopardy. The economic reality of television,
Jones reports, dictates that it is not enough to draw the biggest audiences
in prime time because that audience is shrinking all the time. Now networks
want a financial stake in first-run syndication. Another broadcast analyst
said the deal is "important for CBS in its effort to gain greater and
greater control over its programs." King World is debt free and has $900
million in free cash. Mr. Karmazin promised to use that money to grow more.
There is speculation CBS could purchase Viacom, combine news operations with
CNN, acquire more TV and radio stations, and/or build a bigger presence on
the Internet.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones]
(http://chicagotribune.com/textversion/article/0,1492,ART-26359,00.html)
YAHOO DEAL MAKES MORE INTERNET GIANTS
Issue: Competition/Mergers
Yahoo's deal to buy the leading Internet broadcaster, Broadcast.com, for
$5.7 billion moves the global computer medium another step closer to
domination by a few giant "programming networks." While at its core it is
still decentralized, the Internet has quickly gained a handful of huge
companies to run the complex technology and high-speed data conduits to
deliver content. The purchase of Broadcast.com will give Yahoo a solid
second place for "eyeballs" on the Web. Only America Online has a larger
audience. Yahoo's purchase of the Internet broadcaster follows acquisition
of GeoCities, a Web community for personal home pages, for more than $4
billion about three months ago. The new purchase helps in its goal to
assemble what people in the industry call networks, in the television sense:
a national set of information services that will attract people from all
over the world. Yahoo's purchase yesterday will give them the Web's top
site for transmitting audio and video signals with programming from more
than 40 television stations, 385 radio stations and thousands of compact
discs. The mergers are accelerating in part because investor frenzy has
pushed the valuations of Internet stock companies to exorbitant levels, and
companies want to convert their high-priced shares into valuable assets
quickly, before the speculative bubble bursts.
[SOURCE: Washington Post (E1), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/yahoo2.htm)
INTERNET
TIME TO DIVORCE YOUR ISP? HERE'S HOW TO DECIDE
Issue: Internet Access
Yes, breaking up is hard to do...so here's some strategies for finding and
keeping an Internet Service Provider. 1) Know what you want. A survey of
businesses ranked the following as the most important criteria: Connection
availability, Network performance, Network capacity, Reputation for quick
repairs, and Price. 2) Know who's out there. The article includes a link to
a ranking of 11 ISPs. 3) Don't get trapped. Avoid long term contracts as
technology is rapidly changing and don't settle for the ISP pre-chosen for
your new PC. Links include 3 ISP guides:
(http://www.zdnet.com/products/stories/reviews/0,4161,339950,00.html),
(http://www.zdnet.com/intweek/supplements/survival/gorilla.html), and
(http://www.zdnet.com/zdtv/moneymachine/shopping/story/0,3666,2130862,00.htm
l).
[SOURCE: Jesse Berst's AnchorDesk, AUTHOR: Jesse Berst]
(http://www.anchordesk.com/a/adt0402ba/3217)
TELEVISION
COURTROOM BROADCASTS
Issue: Television Content
While Americans have great curiosity about the inner workings of the Justice
System, current law prohibits the broadcast of federal criminal proceedings.
Senator Charles Schumer (D-NY) and Senator Charles Grassley (R-IA) have
proposed a new bill that would open up Federal Trials to the public's view.
The "sunshine in the courtroom" bill would allow Federal Judges to permit
unobtrusive cameras in the courtroom. The authors support this bill
on the grounds that "broadcast coverage can enhance justice and educate the
public about significant legal issues without sacrificing fairness."
According to co-sponsor Charles Schumer, "The Federal courts can only gain
in dignity and respect if the cloak of secrecy is lifted."
SOURCE: New York Times (A22), AUTHOR: New York Times Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/02fri3.html)
SATELLITE
FCC APPROVES SATELLITE TV DEAL
Issue: Satellite TV
Concluding satellite TV company mergers will serve the public interest by
providing more competition to cable TV providers, the Federal Communications
Commission's International Bureau cleared the way Thursday for DirecTV to
buy United States Satellite Broadcasting, its main programming affiliate.
The FCC's action coincided with the first day of cable TV deregulation
prompting FCC Chairman Bill Kennard to note the end of federal price
controls on cable TV "makes it even more critical that we provide consumers
with competitive alternatives to cable in the video programming market." The
FCC action removes the $1.3 billion deal's last regulatory hurdle. USSB
shareholders still must approve the deal which the companies hope to close
by midyear.
[SOURCE: Washington Post (Online), AUTHOR: Jeannine Aversa]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/fcctv1.htm)
See also:
TRANSFER OF CONTROL OF USSB'S DBS AUTHORIZATIONS TO DIRECTV
Issue: Satellite
The International Bureau granted the joint application of United States
Satellite Broadcasting Co and DIRECTV Enterprises for consent to transfer
control of USSB's direct broadcast satellite ("DBS") authorizations at 101