Mergers
Ameritech, SBC talk merger (ChiTrib)
SBC Communications To Acquire Ameritech In a $55 Billion Deal
(WSJ)
Megamerger Would Create Phone Giant (WP)
Universal Service
Bombarded by Criticism, FCC Recoils $2.65 Billion
Web-Connection Program (WSJ)
Report Says U.S. Program to Wire Schools May
Fall Short (CyberTimes)
Universal Service Support for Schools and Libraries (FCC)
Television
As Their Dominance Erodes, Networks Plan Big Changes (NYT)
Cable News: Eyes of Belo Are Upon All Texas (WSJ)
New cable services are everywhere, but they all seem to be owned
by the same big companies (NYT)
DTV Pending Construction Permit Applications (FCC)
Broadcasters Offer Subscription DTV Fee Plan (B&C)
Choice is Key to Winning Consumers to Digital (B&C)
Sinclair Studies Minority Opportunities (B&C)
Putting Commercial in Noncommercial (B&C)
Local-Into-Local Bill Not Likely This Year (B&C)
Campaign Finance Reform
Campaign Reform Illusions (NYT)
TV ads dial up cost of California primary (ChiTrib)
In Brief (B&C)
Internet
Grant Program Encourages Study of Effects of Computer Use on Children
(CyberTimes)
Studies Reach Contradictory Conclusions About the
Internet Population (CyberTimes)
In Terms of the Audience, Size Matters. But How Big?
And by Whose Measure? (NYT)
The Search Services Want Your Eyes to Find No Reason to Wander (NYT)
A radio format with no boundaries (ChiTrib)
Support Grows For Faster Modem Speeds (NYT)
Ameritech sitting by phone for FCC's decision
on high-speed data rules (ChiTrib)
Competition
Cable Slow to Pick Up Telephone (B&C)
Antitrust
No case against Windows98 (ChiTrib)
TV Listings Stir Windows98 Dispute (NYT)
Journalism
PEN Award to Maine Reporter Ignites Feud With Newspaper (NYT)
** Mergers **
Title: Ameritech, SBC talk merger
Source: Chicago Tribune (p.1)
http://chicago.tribune.com/business/businessnews/article/0,1051,ART-8418,00
.html
Issue: Mergers
Description: Sources say that the boards of local telephone giants Ameritech
and SBC met separately over the weekend to discuss a merger. The deal -- a
reported stock swap -- could be worth $55 billion. If realized, the merger
would result in just four Baby Bells after the break up of AT&T in 1984
created seven.
Title: SBC Communications To Acquire Ameritech In a $55 Billion Deal
Source: Wall Street Journal (A1,A10)
http://wsj.com/
Author: Anita Raghavan, Steven Lipin & John J. Keller
Title: Megamerger Would Create Phone Giant
Source: Washington Post (A1,A5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/11/133l-051198-idx.html
Author: Mike Mills
Issue: Merger
Description: In the biggest deal ever in the "take-over-crazed"
telecommunications industry, SBC Communications Inc. is about to acquire
fellow Bell telephone company Ameritech Corp. in a stock swap valued at $55
billion. The deal would resemble much of the old Bell system and create the
nation's biggest local telephone company, said industry sources. While
spokespeople for both companies declined to comment, others familiar with
the talks say that an announcement could come as early as today. The merger
would continue a trend of consolidation in the national telecommunications
industry as companies seek size and diversity.
** Universal Service **
Title: Bombarded by Criticism, FCC Recoils $2.65 Billion Web-Connection Program
Source: Wall Street Journal (B6)
http://wsj.com/
Author: John Simons
Issue: Universal Service
Description: In a report issued to Congress on Friday, the Federal
Communications Commission said it will combine the Schools and Libraries
Corp. with the Rural Health Care Corp. The decision will fold the two
entities into the Universal Service Administration Co., an "existing
quasi-governmental group that subsidizes the telephone service in low-income
urban areas and rural regions." The FCC also said it will possibly cut back
the $2.65 billion national effort to connect schools, libraries and rural
health care centers to the Internet, stating that the commission doesn't
have enough money to fund the program at its current levels.
Title: Report Says U.S. Program to Wire Schools May Fall Short
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/09fcc.html
Author: Jeri Clausing
Issue: Universal Service
Description: The Federal Communications Commission reported Friday that
money available to the federal program established to help schools and
libraries obtain Internet access could fall $300 million short of the $2.02
billion requested for 1998 unless new fees are imposed on long-distance
carriers. This means that the program, also known as the e-rate program, may
not be equipped to finance all of the 45,000 applications it received this
year. "This certainly raises the possibility," said an FCC official who
spoke only on the condition of anonymity. "We will be seeking public comment
on how much to fund."
Title: Universal Service Support for Schools and Libraries
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Reports/fcc98085.wp
Issue: Universal Service
Description: "In a Report to Congress submitted today, the Commission
proposed a single entity that would administer all forms of federal
universal service support. The Report responds to Congress' request that the
Commission propose a single entity for administering universal service
support for rural health care providers and schools and libraries. The
Commission proposed that these duties be performed by the Universal Service
Administrative Company (USAC), the entity that currently administers the
high cost and low income support mechanisms and that performs billing,
collection, and disbursement functions for all of the universal service
support mechanisms." [See press release
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8035.html]
** Television **
Title: As Their Dominance Erodes, Networks Plan Big Changes
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/national/tv-seinfeld-media.html
Author: Bill Carter
Issue: Television
Description: The big television networks are in trouble. President of CBS
Television Leslie Moonves said, "It's a time of total transition. You have
three of four networks that probably aren't going to make any money next
season, and NBC, which made $500 million this year, will probably be down to
$100 million. It's ugly." In the last year or so, the following challenges
for the networks have arisen: hit series are becoming harder to find and
turning up on nontraditional channels like Comedy Central [South Park] and
the WB [Dawson's Creek]; the cost of programming (i.e. NFL football games
and E.R) have skyrocketed); and their audience continues to shrink. "We used
to think the possibility existed that the erosion was going to stop," said
ABC president Robert Iger. "We were silly. It's never going to stop."
Title: Cable News: Eyes of Belo Are Upon All Texas
Source: Wall Street Journal (B12)
http://wsj.com/
Author: Alejandro Bodipo-Memba
Issue: Cable & Community
Description: A.H. Belo Corp., already a major media player in Houston and
Dallas, is planning to launch a Texas cable-news network early next year.
A.H. Belo will use its ownership of network-affiliated television stations
in Houston, Dallas and San Antonio, and its "flagship" publication, the
Dallas Morning News, in conjunction with its new network. The move reflects
a nationwide trend toward developing regional broadcast networks that depend
on the expertise of existing newspaper and television reporters. "Regional
cable news networks provide a community orientation that probes the politics
and lives of local institutions," said Josh Sapan, president of Rainbow
Media Holdings in NY, a unit of Cablevision Systems Corp.
Title: New cable services are everywhere, but they all seem to be owned
by the same big companies
Source: New York Times (C10)
http://www.nytimes.com/yr/mo/day/news/financial/11medi.html
Author: Geraldine Fabrikant
Issue: Cable/Ownership
Description: The Children's Television Workshop has teamed up with Viacom's
Nickelodeon to create a new commercial-free cable channel of children's
programming. Ten years ago, CTW might have gone it alone as cable operators
were hungry for content. Now, CTW will need Viacom's clout to get the
channel space on cable. "So competitive has it become to get on cable -- and
so uncertain are projections about the time it takes to reach profitability
-- that only giant companies with cable services already have the money and
the muscle to develop new concepts."
Title: DTV Pending Construction Permit Applications
Source: FCC
http://www.fcc.gov
Issue: Digital TV
Description: DTV Pending Construction Permit Applications
http://www.fcc.gov/mmb/vsd/files/dtvpend.html and the Top Ten Market
Network Affiliates DTV Early Builder Application Status
http://www.fcc.gov/mmb/vsd/files/dtvstat.html.
Title: Broadcasters Offer Subscription DTV Fee Plan
Source: Broadcasting&Cable (p22)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Digital TV
Description: Broadcasters and others are saying that federal fees for
digital TV subscription services should be based on the stations gross
revenue for any such business. They say that a revenue-based fee would be
the easiest to administer. "Setting fees based on the gross revenue ...would
impose the fewest costs on the FCC and licensees," said the NAB and the
Association for Maximum Service TV (MSTV). Regulators are working to
implement a fee plan that satisfies the parts of the 1996 Telecommunications
Act that require the FCC to collect fees for "subscription -based ancillary
services that stations offer over the channel they receive for digital TV."
Title: Choice is Key to Winning Consumers to Digital
Source: Broadcasting&Cable (p62)
http://www.broadcastingcable.com/
Author: Donna Petrozzello
Issue: Digital TV
Description: Last week, industry operators suggested that the vast majority
of consumers have "Homer Simpson rather that a Winslow Homer in their living
rooms." (Referencing the $30 million Bill Gates recently spent to acquire a
Homer seascape.) Panelists used the observation made by moderator Jeff
Greenfield to suggest that for cable to succeed in a digital world it must
emphasize the increased choice consumers will receive through the use of a
high-definition TV set rather than the improved picture. Leo Hindery Jr.,
president of TeleCommunications Inc. suggested that "pitching consumers to
buy high-priced TV's as the proper way to receive digital TV comes out in a
disrespectful, revolutionary fashion...We have to be mindful of consumers
and their ability to afford new TV sets. Digital needs to be rolled out, not
dropped on consumers heads."
Title: Sinclair Studies Minority Opportunities
Source: Broadcasting&Cable (p23)
http://www.broadcastingcable.com/
Author: Chris McConnell & paige Albiniak
Issue: Minorities
Description: Last week, the Sinclair Broadcast Group announced that it is
undertaking a "comprehensive effort" to find ways to improve minority
participation in broadcasting. Sinclair's director of gov't relations, Mark
Hyman, said that the group will focus on ways to improve minority access to
capital.
Title: Putting Commercial in Noncommercial
Source: Broadcasting&Cable (p38)
http://www.broadcastingcable.com/
Author: Steve McClellan
Issue: Public Television
Description: The Public Broadcasting Service made a presentation to the New
York ad agency community last week that "took shots' at cable networks and
commercial broadcasters as it works to generate more sponsorship income for
itself. Executives at the presentation said that PBS hope to write about 10
percent more national sponsorship business next season. Ervin Duggan, PBS
President, told attendees that the PBS brand was "bigger than any cable
channel."
Title: Local-Into-Local Bill Not Likely This Year
Source: Broadcasting&Cable (p47)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Satellite
Description: Although congressional staffers at a Cable 1998 panel said they
would like to see legislation that allows satellite television providers to
offer local broadcast signals in local markets, they don't expect any such
legislation to pass this year. When asked about the possibility of
local-into-local legislation passing, Whitney Fox, telecommunications
counsel to committee Chairman Billy Tauzin (R-LA), said: "Gosh, we're
hopeful...We would like to see some procompetitive policy get through before
March 1999."
** Campaign Finance Reform **
Title: Campaign Reform Illusions
Source: New York Times (A18)
http://www.nytimes.com/yr/mo/day/editorial/11mon1.html
Author: NYT Editorial Staff
Issue: Campaign Finance Reform
Description: A bipartisan group of freshman members of Congress are pushing
a new version of campaign finance reform in the House. Instead of curbing
the flow of money into the system, the bill simply rechannels it. The bill
waters down the one offered by Reps. Christopher Shays (CT) and Martin
Meehan (MA). Like the McCain-Feingold bill in the Senate, Shays-Meehan would
put similar fund raising restrictions that candidates face on the parties
and groups running attack ads within 60 days of an election. The House will
vote on reform next month. "But if lawmakers pass something that does not
work, they will only breed voter cynicism and assist those politicians who
would continue a corrupt system in a different guise."
Title: TV ads dial up cost of California primary
Source: Chicago Tribune (Sec 1, p.4)
http://chicago.tribune.com/news/nationworld/article/0,1051,SAV-9805110126,0
0.html
Author: Karen Brandon
Issue: Campaign Finance/Free Time for Candidates
Description: Some are calling it "the TV-image ad." As the June 2 primary
election date nears, Californians are seeing little of the candidates past
the TV ads they buy. Two of the four candidates are multi-millionaires who
are spending their money freely -- perhaps as much as $50 million between
them just on the primary. The race seems destined to become the most
expensive state election in US history. A fellow at the Public Policy
Institute of California, a nonpartisan nonprofit conducting voter polls,
says, "Eighty percent of Californians say they they've seen TV ads, and only
9 percent say they've closely followed news stories of the election. Do we
want to elect our leaders based on television advertisement, pretty much
devoid of news content or other sources of information? That's the way this
seems to be turning out."
Title: In Brief
Source: Broadcasting&Cable
http://www.broadcastingcable.com/
Author: B&C Writers
Issue: Campaigns & Free-Air Time
Description: FCC commissioners were again unable to reach an agreement last
week on what to do with the FCC's "personal attach and political editorial
rules." The rules require stations to "give political candidates the
opportunity to respond to on-air attacks and editorials. An appeals court
today is scheduled to hear arguments in the Radio-Television News Directors
Assoc.'s efforts to prompt FCC action on its petition to eliminate the two
rules."
** Internet **
Title: Grant Program Encourages Study of Effects of Computer Use on Children
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/09grant.html
Author: Pamela Mendels
Issue: Children and Technology
Description: Learning in the Real World, a small not-for-profit group based
in Woodland, Calif., plans to distribute $50,000 in grants this year for
studies of the effect of computer use on children's learning and/or
cognitive and emotional development. "There is no shortage of opinions out
there, but a distinct shortage of hard data," said William L. Rukeyser,
coordinator of the group. "And with an issue this important, there is a
crying need for hard disinterested research conducted at the university
research institution level." The grants will be given out in awards of about
$5,000 and $10,000.
Title: Studies Reach Contradictory Conclusions About the Internet Population
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/10race.html
Author: Rebecca Fairly Raney
Issue: Internet
Description: Over the past month, two released studies looking at Internet
demographics have reached contrary conclusions, highlighting just how
difficult it can be to define a medium that is changing so quickly. The New
England-based Roper Center for Public Opinion Research published a study
that revealed people who use the Internet reflect the racial composition of
America, and that gaps in age, sex and income among users are rapidly
closing. The study was published in its journal, The Public Perspective, the
second week of April. A week later, researchers at Vanderbilt Univ.
published a study in the journal Science that showed that blacks in
household with incomes below 440,000 were far less likely to have Internet
access than whites in the same income bracket. Both studies were based on
national surveys, so why do we see such varying results? The Roper Center
based its research on data collected this past winter, while the Vanderbilt
study was based on data collected 15 months ago. During this year-long
period the Internet population has more than doubled. "As fine as this
[Vanderbilt] study is, treating it as state of the art may do a great
disservice," said David Birdsell, an author of the study published in The
Public Perspective. "The amalgamation of issuing the report now and the
coverage it has received suggest these are the problems we now face -- and
that's not true," said Birdsell. Donna L. Hoffman, one of the authors of the
Vanderbilt study, acknowledged the elapsed time since the collection of her
data and said people should read the study as the state of the Internet a
year ago. "There's certainly no claim that that's the case today," Hoffman said.
Eye Catching: How New Media Are Racing to Become the Mass Media (Two-part
story in NYT)
Title: In Terms of the Audience, Size Matters. But How Big?
And by Whose Measure?
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/05/biztech/articles/11web-rate.html
Author: Saul Hansell
Issue: Internet
Description: A host of companies have gotten into the Internet ratings
business. Relevant Knowledge, Net Ratings, and, soon, Nielsen all try to
measure the traffic at popular websites. They numbers mean dollars as more
and more advertising money is spent on the Internet. The Top 10 websites
collect 52% on the Internet ad dollars.
Title: The Search Services Want Your Eyes to Find No Reason to Wander
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/05/biztech/articles/11web-eyes.html
Author: Saul Hansell
Issue: Internet/Online Services
Description: Companies have been searching for a profitable business model
on the Internet for the last three years. They may have found it -- the
search itself. Internet search engines are the most visited sites on the
Web; they get millions of visitors each day. The new media is becoming a
mass media and counting eyeballs is beginning to count. Wall Street has
valued two publicly traded websites (InfoSeek and Lycos) at $9 billion. To
keep those eyeballs, these search sites are adding new services -- email,
chat rooms, etc -- to make sure visitors don't wander away.
Title: A radio format with no boundaries
Source: Chicago Tribune (Sec 4, p.1)
http://chicago.tribune.com/business/businessnews/article/0,1051,ART-8331,00
.html
Author: Tim Jones
Issue: Internet/Radio
Description: Many radio stations are moving their broadcasts onto the
Internet. It is easy and inexpensive (~$15,000) to do. But two questions
arise: Who is out there listening? and How much money can be made off them?
The Internet offers radio broadcasters a global office and interactivity
unheard of on even the best radio receivers. With improvements in fidelity,
Internet radio's audience could really take off.
Title: Support Grows For Faster Modem Speeds
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/11modem.html
Author: Seth Schiesel
Issue: InfoTech
Description: In January, Microsoft, Compact, and Intel announced the
creation of the Universal ADSL Working Group along with the country's six
largest telephone companies. Now some of the largest telecos in the world
have apparently agreed to join including British Telecom, Deutsche Telekom,
France Telecom, Nippon Telegraph and Telephone, and Singapore
Telecommunications. Asymmetric Digital Subscriber Line (ADSL) allows
consumers to connect to the Internet using copper telephone lines at speeds
30 times greater than they can now. The group hopes to have ADSL technology
available to the general public by the end of the year.
Title: Ameritech sitting by phone for FCC's decision on high-speed data rules
Source: Chicago Tribune (Sec 2, p.2)
http://chicago.tribune.com
Issue: Internet Access
Description: Ameritech and other phone companies are excited about an
opportunity to offer ultrafast Internet connections via today's cooper wire
telephone lines. But they will not be so interested in the service -- called
DSL -- if forced by the Federal Communications Commission to allow
competitors access to the technology. "If you don't require the incumbents
Bells to unbundle DSL service," argues a lawyer for Internet service
providers (ISPs), " you'll be recreating the same kind of monopoly for
Internet connections that we're trying to break up in telecommunications."
** Competition **
Title: Cable Slow to Pick Up Telephone
Source: Broadcasting&Cable (P63)
http://www.broadcastingcable.com/
Author: Joe Schlosser
Issue: Telephony
Description: Federal regulators agree that the process of getting cable
operators into the local telephone business has been rather slow and
tedious. At last week's "The Telecom Act Turns Two: The State Perspective"
panel, FCC Commissioner Gloria Tristani commented that the process has been
anything but fast but acknowledged that lately there have been some positive
signs. "Cable's entry has been slow, just like everybody else's, but
somewhat promising in the last six months," Tristani said. "The cable
companies are starting to get into residential areas now, which is a natural
area to go into. They had just been in the business side, but now they are
venturing toward the residential areas." David Svanda, commissioner of the
Michigan Public Service Commission, said that "there is obviously a lot of
ground to be covered. But this is not unique to his industry. Every
industry that has gone from a monopoly-type environment to a market-driven
one has gone through the same kind of thing."
** Antitrust **
Title: No case against Windows98
Source: Chicago Tribune
http://chicago.tribune.com/news/opinion/article/0,1051,SAV-9805110101,00...
Author: ChiTrib Editorial Staff
Issue: Antitrust
Description: The US government must prove that Microsoft achieved dominance
in the operating system market through predatory or exclusionary acts. The
Department of Justice has not convincingly made this case yet. People use
Windows because they like it better. "This is not to say there won't come a
day when an antitrust case *could* be made against Microsoft. But this isn't
the case, and this isn't the day."
Title: TV Listings Stir Windows98 Dispute
Source: New York Times (C5)
http://www.nytimes.com/
Author: Joel Brinkley
Issue: Antitrust
Description: Part of Windows98 is an electronic programming guide that tells
you what is going to be on TV. Microsoft sees it as an attractive new
service that could broaden its customer base. But Electronic TV Host, a
small company that already provides the service, sees it another way. The
company is worried that no one will pay for the service once they can get it
free from Microsoft. It is a familiar complaint and very similar to the one
made by Netscape.
** Journalism **
Title: PEN Award to Maine Reporter Ignites Feud With Newspaper
Source: New York Times (A10)
http://www.nytimes.com/yr/mo/day/news/national/maine-paper.html
Author: Carey Goldberg
Issue: Journalism
Description: The PEN American Center plans on awarding Terrilyn Simpson
$25,000 for defending the First Amendment. Her former employer thinks PEN
should check the fact first. PEN is awarding Ms. Simpson the award because
of the hardship she endured trying to publish an article about the chemical
exposure at a local paper mill that left workers ill or dead. PEN's pres
release on the award implied that the newspaper owner, Courier Publications,
was in cahoots with the paper mill. That's news to Courier. Ms. Simpson's
former employer says that she left her position for unclear reasons before
the article was finished. Ms. Simpson claims the newspaper looked for
excuses not to publish the article.
*********