Communications-related Headlines for 5/18/99

MEDIA & CHILDREN
TV Violence Hearing (Senate)
To Filter Or Not To Filter (CyberTimes)

UNIVERSAL SERVICE
Lower Phone Bills and Increase Internet Access (FCC)

JOURNALISM
Path From Old Media To New Becomes More Crowded (USA)
Dow Jones and Reuters Create Net Service for
Professionals (NYT)

MERGERS/ALLIANCES
Sound of F.C.C. Silence in a Big Merger (NYT)
ICC Seeks Details in Ameritech Deal (ChiTrib)
They Don't Look Like Babies Or Bells Anymore (WSJ)
Deutsch Telekom Makes Final Push (WSJ)

INTERNET
Commerce Dept. Shuts Web Site Over Fee Issue (WP)
Internet Board Asked To Slow Down Policy Vote (CyberTimes)
3 On-Line Book Retailers Cut Prices On Best Sellers (NYT)
Cable-Internet Regulation Debated (SJ Merc)

SATELLITES
Satellite Dish Out Strong Growth (USA)

MEDIA & CHILDREN

TV VIOLENCE HEARING
Issue: Television
Senator John McCain (R-AZ), Chairman of the Committee on Commerce, Science,
and Transportation, and Senator Fritz Hollings (D-SC), Ranking Democrat of
the Committee, announced the witness list for the hearing on TV violence.
Members will discuss legislation requiring the Federal Communications
Commission to create a time period when children are protected from violent
programming. Senator Hollings introduced the bill, S.876, on April 26. The
Full Committee hearing is scheduled for Tuesday, May 18, at 10:00 a.m. in
room 253 of the Russell Senate Office Building. Senator Hollings will
preside. Following is the tentative witness list. Panel I: Dr. Leonard Eron,
Professor of Psychology and Senior Research Scientist, Institute for Social
Research, University of Michigan and Mr. Arthur Taylor, President,
Muhlenberg College, Pennsylvania
Panel II: Mr. William Abbott, President, National Foundation to Improve
Television; Mr. James Hamilton, Associate Professor of Public Policy, Duke
University; and Mr. Dale Kunkel, Professor of Communication, University of
California Santa Barbara.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-62.htm)

TO FILTER OR NOT TO FILTER
Issue: Internet/Content/Regulation
The Internet Free Expression Alliance, a coalition of 13 national organizations
including the American Civil liberties Union (ACLU) and the Electronic Privacy
Information Center (ERIC), is requesting that an FCC-launched filter
information page include links to information about filters' shortcomings. The
coalition says they agree with the FCC's goal to educate parents on how best to
protect their kids, but fear that filter vendors gloss over the tendency of
filters to block out such topics as breast cancer, homosexuality, and AIDS.
This issue will likely come up on Thursday when the Senate Commerce Committee
will hold a hearing on Senator John McCain proposal that all schools and
libraries install filters before in order to receive Federal E-rate money.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/18capital.html)

UNIVERSAL SERVICE

LOWER PHONE BILLS AND INCREASE INTERNET ACCESS
Issue: Universal Service/Telephone Regulation
William Kennard, chairman of the Federal Communications Commission (FCC),
said today that consumers can reap the dual benefits of lower phone bills
and Internet access for all schools and libraries. He said this in a speech
to the National Consumers League in Washington (DC). In response to concerns
that full funding of the e-rate would boost phone bills, Chairman Kennard
said, "Your concern is one that I considered greatly in making this decision
[to recommend full funding]. And that's why along with funding the e-rate to
its cap, the FCC -- as we have done over the past two years -- is
substantially reducing other costs to America's long-distance carriers,
which they should pass along in lower rates to consumers. So even with
funding the e-rate to its cap, they will have available half a billion
dollars which can be - and should be - used to further lower long-distance
rates for American consumers." He told the National Consumers League, "Your
role is to use your unique ability to give voice to the concerns of American
consumers and tell these companies that this savings must be passed on to
the average American family, not just to the big, corporate customers."
Chairman Kennard mentioned the enormous success of the first year of the
e-rate program and the huge demand for second year funding. "By
fully-funding the e-rate program," he said, "we can meet this demand and
continue the work we've done this past year. By following this course, we
will be able to wire 528,000 additional public school classrooms to the
Internet. If we meet this high demand, we will be able to help schools that
teach 40 million American children. And only by funding at this level, will
we be able to reach the children of rural America. In fact, with this
funding, we'll be able to connect one-third of public schools throughout
rural America."
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9030.html)

JOURNALISM

PATH FROM OLD MEDIA TO NEW BECOMES MORE CROWDED
Issue: Journalism/Internet
This month Peter Arnett, the former CNN veteran reporter, announced he would
join the new Foreign TV.com -- an international video news service to be
launched next month. The service will feature interviews with world leaders
that will be available for online viewing. Arnett says moving from TV to the
Internet be not unlike what he did 20 years ago when he left the Associated
Press for a much-speculated 24-hour news channel -- CNN. For journalists who
have moved from print to online, the attraction is to tread in new territory as
well as the ability to interact with readers? When Herb Greenberg, a columnist
for online financial publication, TheStreet.com, left the San Francisco
Chronicle to go online in 1995 he, "became enchanted by the infectious and
responsive spirit of the online audience." David Talbot, chairman and founder
of Salon, a San Francisco-based online magazine, says many still think that
online journalism equals MSNBC's "gossip columnist" Matt Drudge who publishes
unconfirmed information. As more and more print and TV journalists move online,
Greenburg says it will not be long before the Internet is thought of as, "just
another medium to convey news."
[SOURCE: CyberTimes, AUTHOR: Lisa Napoli]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/18media.html)

DOW JONES AND REUTERS CREATE NET SERVICE FOR PROFESSIONALS
Issue: Internet Content/Alliances
Perennial rivals Dow Jones and Reuters are teaming up to create an
Internet-based corporate news and information service. Articles from Dow
Jones Interactive and Reuters Business Briefing will be distributed along
with archives of their own and other outlets. News will be delivered within
couple of hours of when it happens. The wire services for the two companies
will remain separate and competitive. The companies will be competing with
Dialog whose chief executive said: "What is interesting to note is that this
new service will be comprised mainly of news. As we have said many times
before, news is increasingly a commodity, available for free on numerous
Internet sites. In this context, news-only services are more and more
difficult to sell on a stand-alone basis."
[SOURCE: New York Times (C10), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18dow.html)

MERGERS

SOUND OF F.C.C. SILENCE IN A BIG MERGER
Issue: Mergers
Federal Communications Commission reaction to the $37 billion US West-Global
Crossing merger was restrained: FCC Chairman William Kennard told a meeting
of the National Consumers League in Washington, "We have to be careful in
trying to be too categorical about this -- in saying that all mergers are
bad, that we've reached a point where we can't have any more mergers. They
all have different competitive dynamics." The last time a local phone giant
and a long distance company -- SBC and AT&T -- talked about merger, then-FCC
Chairman Reed Hundt said it was "unthinkable." Talks of a merger ended
before an official announcement. Even though the players in the latest
merger aren't as big as SBC and AT&T, the Baby Bells are reading into
Chairman Kennard's words (or lack thereof) that their time has come and
widespread entry into long distance is not far away.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18phone.html)
See also:
WINNICK WEAVES A SINGLE CABLE INTO A EMPIRE
[SOURCE: New York Times (C2), AUTHOR: Andrew Pollack]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18winn.html)

ICC SEEKS DETAILS IN AMERITECH DEAL
Issue: Mergers
In their second deliberation session on the SBC-Ameritech merger, Illinois
Commerce Commissioners discussed how to open Ameritech's local phone markets
in the state to competition and how to pass savings on to consumers. In
Texas, SBC has implemented what is known as "common transport" -- which
allows competitors to connect to central offices at attractive prices.
Although Ameritech has been ordered to do so, the company still has not
achieved it. Also, when the deal was first announced, executives from the
companies spoke about cost reductions of $1.4 billion, but are now saying
the figure is $31 million.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905180241,00.html)

THEY DON'T LOOK LIKE BABIES OR BELLS ANYMORE
Issue: Telephony
Over the past decade, the Baby Bells--formed by the 1984 divestiture of
AT&T--have grown to be large and diverse telephone titans. In a recent example,
US West's has announced a merger with Global Crossing to create an underwater
cable network connecting the continents. And if Bell Atlantic and GTE;s merger
is approved, they will have access to a national long distance network. Bell
South has also been busy, investing in Latin American wireless assets, seizing
an important opportunity to expand south of the boarder. "These companies have
very different aspirations," said Analyst Brian Adamik. "They all want to be in
the long distance business, they all want to be global, but how they go about
doing it shows the difference between them." They have all, however, avoided
one strategy for expansion; none of the Baby Bells has genuinely attempted to
compete with another to provide local service.
[SOURCE: Wall Street Journal (B1), AUTHOR: Stephanie Mehta]
(http://wsj.com/)

DEUTSCH TELEKOM MAKES FINAL PUSH
Issue: Merger/Telephony
In a final effort to acquire Telecom Italia, Deutsche Telekom's CEO Ron Summer
is attempting to convince shareholder of the long-term benefits that a combined
company will reap. Olivetti's hostile takeover bid of $65 billion will expire
on Friday. Mr. Sommer only has until then to convince investors that joining
forces with the Italian phone company is an important opportunity, and perhaps
an a first step in to entering the US market.
[SOURCE: Wall Street Journal (A23), AUTHOR: William Boston]
(http://wsj.com/)

INTERNET

COMMERCE DEPT. SHUTS WEB SITE OVER FEE ISSUE
Issue: Access to Government Info
Gov.search, a new fee-based web site launched yesterday by the National
Technical Information Service (NTIS), was shut down by the Commerce Dept. soon
after public interest advocates and federal officials rasied questions as to
whether it complies with laws on public access to government documents. The Web
site allows users who pay a fee -- $15 for a one-day pass or $30 for monthly
access -- to search for documents on federal Web sites and government archives
simultaneously. At yesterday's press conference to introduce the service,
critics demonstrated concern about paying for documents that might otherwise be
free on other federal Web sites. They also expressed discontent about current
NTIS policy that charges fees for accessing federal information in its 50-year
archive, CD-Roms and other information products. They believe that more
information on court decisions and congressional voting records should be made
public on the Web. It is estimated that Gov.search will be put on hold for 24
to 48 hours until the service has been properly reviewed. "We are going to
review the fee for this subscription service to see if it is consistent with
the administration's policy on providing open and unrestricted access to public
information," Commerce Department spokesman Morrie Goodman said.
[SOURCE: Washington Post (E3), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/18/017l-051899-idx.html)
See also:
U.S. SEARCH ENGINE IS STOPPED HOURS AFTER DEBUT
[SOURCE: New York Times (C6), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18gov.html)

INTERNET BOARD ASKED TO SLOW DOWN POLICY VOTE
Issue: Internet/Regulation
Last week a group of technologists, policy annalists, and lawyers submitted a
petition to the Internet Corporation for assigned Names and Numbers (ICANN)
asking that the board takes its time in adopting new rules set by the World
Intellectual Property Organization (WIPO) to combat cybersquatting. The
petition requests that ICANN wait until the rules can be considered by ICANN's
supporting organizations that are still being formed.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/99/05/cyber/articles/18capital.html

3 ON-LINE BOOK RETAILERS CUT PRICES ON BEST SELLERS
Issue: E-Commerce
Amazon.com, Barnesandnoble.com, and Borders.com will cut the prices on
best-selling books by 50% in a move that will probably mean they will all
lose money on such sales. "There are three things that drive this business,"
said Bill Curry, a spokesman for Amazon. "It's selection, price and
convenience. And we are constantly working on all three of these things.
We've added convenience with distribution centers that will get merchandise
faster to customers. And this is an opportunity to do something with price."
A number of new companies are helping book buyers compare prices through Web
services. "People are using these comparison tools," said Kate Delhagen,
director of online retail strategies for Forrester Research. "And what
Amazon is doing is making sure that they are there. It's definitely a
defensive strategy being deployed, but it's also part of their increasing
energy to add customers to their data base."
[SOURCE: New York Times (C10), AUTHOR: Doreen Carvajal]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18book.html)
See also:
ONLINE BOOKSELLERS JOCKEY WITH PRICE CUTS
[SOURCE: Washington Post (E3), AUTHOR: David Streitfeld]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/18/080l-051899-idx.html )

CABLE-INTERNET REGULATION DEBATED
Issue: Cable
AT&T's proposed acquisition of MediaOne has stirred a growing debate as to
whether data, phone, and Internet services of cables companies should be
regulated. Bell Atlantic is pressuring the Federal Communications Commission to
block the AT&T/MediaOne deal, on the grounds that the joint company would be at
a competitive advantage over other Internet providers, which are regulated. "It
is a discrepancy there is no question about it," admitted William Kennard,
Chairman of the FCC. "My position in the past has been that we have to be very,
very careful about injecting government in a marketplace like the Internet
which has thrived quite well without a lot of government intervention. We need
to proceed very cautiously ... before we say yes regulate or don't regulate."
[SOURCE: San Jose Mercury News, AUTHOR: Jeannine Avaesa]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/451808l.htm)

SATELLITES

SATELLITE DISH OUT STRONG GROWTH
Issue: Satellite
Satellite broadcasters are forging new strategies to compete with cable
operators in the race to deliver new services. Industry analyst, Robert
Kaimowitz says that cable upgrades are so slow that satellites companies are in
a better position. Although cable still leads satellite with 66 million
subscribers, satellite numbers are rising (by 26% to 11.2 million in the 12
months ending in March) and customers become more familiar with equipment. The
biggest problems consumers have with satellite is the need to use a an antennae
cable to get local stations. A bill was approved in the House and is set to go
before the Senate this week that would allow satellite companies to transmit
some local stations. If approved, Echostar plans to offer local stations in 30
markets while DirecTV plans to provide local TV to 20 markets. These satellite
companies are also trying to match cable's advantage of interactive capability.
Last week DirecTV and American Online announced a partnership that would offer
Internet service to satellite subscribers who have a set-top box. This week
Echostar begins delivering its set-top-box to subscribers and will depend on
phone companies for Internet connection.
[SOURCE: USA Today (p. 2B), AUTHOR: David Lieberman]
(http: //www.usatoday.com)

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