Communications-related Headlines for 5/19/98

Antitrust/Microsoft (Here's a taste of the many Microsoft stories today)
U.S., 20 States Sue Microsoft, Allege Abuses (WP)
Microsoft's Memos Bolster Government's Case (WSJ)
U.S. And 20 States File Suits Claiming Microsoft
Blocks Competition Over Internet (NYT)
United States v. Microsoft (NYT)
Where Fine Lines Blur (NYT)

Free Time for Candidates
Court Says Public TV Debates Can Bar Fringe Candidates (NYT)
Public Broadcasters Given Choice in Candidate Debates (WP)

Mergers
MCI Said to Be Bids for Division (NYT)
Illinois Class-Action Ratepayer Lawsuit Seeks to
Block SBC-Ameritech Merger (TelecomAM)

Jobs
Senate Votes to Increase Number of Foreigners Allowed in
US to Fill Technology Jobs (NYT)
Bridging the Digital Divide (FCC)

Convergence
Kodak and AOL Are Expected to Unveil Pact Allowing Digitized
Photos On-Line (WSJ)
Picture This: Photos Online (WP)

Crime
Gore to Unveil High-Tech Effort Against Crime (WSJ)

** Antitrust/Microsoft **
(Here's a taste of the many Microsoft stories today)

Title: U.S., 20 States Sue Microsoft, Allege Abuses
Source: Washington Post (A1,A12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/19/136l-051998-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: The suit filed against Microsoft Corp. in federal court
yesterday by the Justice Dept. and 20 state attorneys general, alleged that
the software company has "engaged in a pattern of illegal business practices
designed to protect its monopoly in personal computer operating systems and
crush its competitors." Justice Dept. antitrust chief Joel I. Klein
denounced "the barrage of illegal, anti-competitive practices that Microsoft
uses to destroy its rivals and to avoid competition on the merits."
Microsoft Chairman Bill Gates "shot back" from the company's headquarters
in Redmond, WA, saying the government cases "attack innovation" and "have
the facts wrong." [For more WPost "Antitrust" stories, check out: For Gates,
Fight May Prove Costly (A1,A11); Gates:'A Step Backwards' (A11); Orders In a
'Jihad' Of Browsers (A12); Leading Up to Microsoft (A12); Q&A/Windows on
Windows 98 (A13)]

Title: Microsoft's Memos Bolster Government's Case
Source: Wall Street Journal (A3,A12)
http://wsj.com/
Author: Bryan Gruley
Issue: Antitrust
Description: The Justice Dept. and 20 states plan to use Microsoft's own
words as a weapon against the software company. The lawsuit and accompanying
documents filed by both the Justice Dept. and state attorneys general are
full of references to Microsoft internal memos, emails, press statements and
sworn testimony "proporting to show" how Microsoft intentionally acted to
suppress direct competition between Netscape Communications Corp.'s
Navigator Browser and Microsoft's Internet Explorer. The preliminary
injunction the Justice Dept. is seeking would require Microsoft to: 1)
Include Netscape's Internet browser in Microsoft's Windows 98 software
package; 2) Stop enforcing provisions with Internet service and content
providers that "allegedly" limit the distribution of rival browsers; 3) Give
personal computer makers the flexibility to change the screen that users see
when they turn on their PCs; 4) Give PC makers "more options for installing
and removing Internet browser software" on new computers.
[To fill your daily quota of "Antitrust" and related stories, also check out
the following WSJ stories: U.S. Sues Microsoft on Antitrust Grounds
(A3,A12); Is Microsoft a New 'Public Utility'? (B1,B7); PC Makers Push Ahead
on Windows 98 (B6); Screen Control Isn't Priority Of PC Makers (B7) -- Enjoy!]

Title: U.S. And 20 States File Suits Claiming Microsoft
Blocks Competition Over Internet
Source: New York Times (A1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/19microsoft-suit
.html
Author: Joel Brinkley
Issue: Antitrust
Title: U.S. Suit takes on Microsoft
Source: Chicago Tribune (p.1)
http://chicago.tribune.com/business/businessnews/ws/item/0,1267,8297-8298-8
770,00.html
Author: Naftali Bendavid
Description: The Federal Government and 20 state Attorneys General filed two
suits against Microsoft yesterday. "The suits accuse the world's largest
software company of using its monopoly in personal computer operating
systems to win control of the Internet and software products, particularly
browsers, which are necessary for viewing and interacting with the World
Wide Web," Brinkley writes. The company's chairman Bill Gates said, "How
ironic that in the United States -- where freedom and innovation are core
values -- that these regulators are trying to punish an American company
that has worked hard and successfully to deliver on these values." The suits
ask that Microsoft end its anticompetitive practices, but neither ask for
delay in the release of Windows98 which will be available in stores on June 25.

Title: United States v. Microsoft
Source: New York Times (A24)
http://www.nytimes.com/yr/mo/day/editorial/18tue1.html
Author: NYT Editorial Staff
Issue: Antitrust
Description: An editorial in support of the antitrust suits. [For the list
of NYT antitrust stories see http://www.nytimes.com/yr/mo/day/business/]

Title: Where Fine Lines Blur
Source: New York Times (A1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/19microsoft-just
ice.html
Author: Steve Lohr
Issue: Antitrust
Title: Suits make unusual demand
Source: Chicago Tribune (Sec 3, p.1)
http://chicago.tribune.com/textversion/article/0,1492,ART-8809,00.html
Author: Andrew Zajac
Description: Yesterday, the Government described its antitrust suit against
Microsoft in classic terms: protecting consumer choice and economic from the
assault of a modern monopolist. The Government is seeing if antitrust
enforcement can be swiftly and "surgically" applied in the digital age.

** Free Time for Candidates **

Title: Court Says Public TV Debates Can Bar Fringe Candidates
Source: New York Times (A16)
http://www.nytimes.com/
Author: Linda Greenhouse
Title: Court backs public TV's news discretion
Source: Chicago Tribune (Sec 1, p.6)
http://chicago.tribune.com/textversion/article/0,1492,SAV-9805190074,00....
Author: Glen Elsasser
Issue: Free Time for Candidates
Description: The Supreme Court ruled that Government-owned television
stations may exercise editorial control and exclude candidates who have
little chance to win from debates [and who has a chance to win, if even
public TV will not let them be part of a debate?]. The Court ruled that
candidates may not, however, be excluded because of their views. A candidate
debate is a "nonpublic forum," said Justice Anthony Kennedy, and it is
subject to reasonable restrictions. Strict rules protecting speakers' access
to a public forum -- like a park or a street corner -- "should not be
extended in a mechanical way to the very different context of public
television broadcasting." In the dissenting opinion Justice John Paul
Stevens writes that the case involved "the right of a state-owned network to
regulate speech that plays a central role in democratic government." Because
the station is state-owned, "deference to its interest in making ad hoc
decisions about the political content of its programs necessarily increases
the risk of government censorship and propaganda in a way that protection of
a privately owned broadcasters does not."

Title: Public Broadcasters Given Choice in Candidate Debates
Source: Washington Post (A2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/19/023l-051998-idx.html
Author: Joan Biskupic
Issue: Free Time for Candidates
Description: The Supreme Court ruled Monday that public television stations
have the right to choose which political candidates appear on its broadcast
debates. The 6 to 3 decision could affect elections around the country since
independent candidates usually tend to rely on public television as their
best opportunity for reaching and gaining crucial name recognition with
voters. The case was considered to be an important test of First Amendment
rights because it offered a "striking conflict' between the free speech
rights of candidates, who fear being excluded if they hold unpopular views,
and broadcasters, who want to have control over what their stations air.
"Were it faced with the prospect of cacophony, on the one hand, and First
Amendment liability on the other, a public television broadcaster might
choose not to air the candidates' views at all," Justice Anthony M. Kennedy
wrote for the court. He said that would "diminish the free flow of
information and ideas" and lead to a policy that "does not promote speech
but represses it."

** Mergers **

Title: MCI Said to Be Bids for Division
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/05/biztech/articles/19mci-backbon...
Author: Seth Schiesel
Issue: Internet/Ownership/Merger
Description: In an attempt to placate regulators who are considering the
WorldCom-MCI merger, MCI is offering its fast-growing Internet business. The
unit could bring in as much as $500 million. AT&T and Sprint have not been
asked for offers, bidders could include British Telecom, IXC Communications,
the Williams Companies, and GTE. There has been concern that the combined
WorldCom-MCI would dominate the Internet "backbone" business.

Title: Illinois Class-Action Ratepayer Lawsuit Seeks to
Block SBC-Ameritech Merger
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: The South Austin Coalition Community Council, Walter Ryan Jr.,
Theodore Chabraja, and Ronald Saltz -- represented by Chicago attorney
Clint Krislov of Krislov & Associates -- have filed suit Docket 98 C 3014 in
the U.S. District Court for the Northern District of Illinois in an attempt
to block the merger of SBC and Ameritech. They contend that the proposed
merger would eliminate any chance for real competition in the five Ameritech
states.

** Jobs **

Title: Senate Votes to Increase Number of Foreigners Allowed in
US to Fill Technology Jobs
Source: New York Times (C7)
http://www.nytimes.com/library/tech/yr/mo/cyber/articles/19visa.html
Author: Lizette Alvarez
Issue: Jobs
Description: By a vote of 78 to 20, the Senate passed a bill that would
allow more foreigners come to the US to fill short-term, computer
programming jobs. Sen Spencer Abraham (R-MI) sponsored the bill: "We need to
be able to attract and find and bring to this country the highest skilled
workers we can to fill these jobs, until we can find workers in our country
to fill them." Labor Secretary Alexis Herman said she would recommend that
President Clinton veto the bill if it passes in the House. Sec Herman said
the bill favors foreign workers over Americans.

Title: Bridging the Digital Divide
Source: FCC
http://www.fcc.gov/Speeches/Kennard/spwek815.html
Author: Chairman Bill Kennard
Issue: Jobs/Minorities
Description: Chairman Kennard's Speech "Bridging the Digital Divide" to the
NAACP Board of Trustees in Baltimore, MD. "Skilled labor today requires the
ability to use computers and telecommunications. Telecommunications is now
14% of the economy -- and growing. The United States will need 1.3 million
new workers in information technology over the next eight years. We're going
to need 95,000 new computer scientists, analysts and programmers each year.
How do we make sure the Information Highway has on-ramps and off-ramps into
every neighborhood? How do we avoid creating a country of information haves
and have-nots? How do we make sure this revolution in communications helps
people not just in Montgomery County but also in downtown Baltimore?
Because, let's face it. That's not happening right now. Not when 78% of
schools in affluent communities have Internet access -- but only half the
schools in low-income areas have access. Not when the percentage of white
children with home computers is triple the percentage of black and Latino
kids. This is what I call the digital divide. If we can't bridge that
digital divide, it will separate Americans when they most need to be brought
together. Conquering the digital divide is one of our most compelling civil
rights issues for the twenty-first century."

** Convergence **

Title: Kodak and AOL Are Expected to Unveil Pact Allowing Digitized
Photos On-Line
Source: Wall Street Journal (B16)
http://wsj.com/
Author: Jared Sandberg & Laura Johannes
Issue: Convergence
Description: Eastman Kodak Co. and America Online Inc. are planning to
announce an agreement today that would allow AOL subscribers who submit film
to one of Kodak's 30,000 retail processors to receive digitized versions of
their photographs via their on-line accounts. The service to be called
"You've Got Pictures!" is expected to start this fall. It is part of Kodak's
continuing effort to "stem the erosion" of its more traditional film
business into digital-based alternatives.

Title: Picture This: Photos Online
Source: Washington Post (C3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/19/108l-051998-idx.html
Author: Mike Mills
Issue: Corporate Alliance
Description: "Betting that a picture is worth a thousand e-mail messages,"
Eastman Kodak Co. and America Online Inc. are expected to announce an
alliance today that will allow people to share photographs online. Next to
the familiar "You've got mail" sign on AOL's opening screen will be a new
box titled "You've got pictures." The new box will alert users to electronic
copies of photographs developed from film dropped off at almost any
photo-finishing retailer a couple of days before. Trading photos this way is
"going to be equal to, or more popular than email," said Barry Schuler,
president of AOL Interactive Services. "Pictures are such a pervasive part
of our everyday life. We are continually looking for more things that people
do that could be done more conveniently and better online." The service
would cost consumers an additional $5 or $6 to have the photos turned into
e-mail and sent to them.

** Crime **

Title: Gore to Unveil High-Tech Effort Against Crime
Source: Wall Street Journal (B16)
http://wsj.com/
Author: John Simons
Issue: Technology Use
Description: Vice President Al Gore is expected to announce a White House
initiative today to strengthen federal law enforcement. Part of this effort
includes arming agents with high-technology gadgets, such as software used
to track cellular-telephone fraud and on-line intellectual property theft,
and hand-held geographic positioning devices. "This new partnership will
help law enforcement across the country deploy the cutting-edge technologies
of our national labs to fight drugs, violent crime, white-collar crime and
terrorism," Vice President Gore said yesterday. "With their landmark
agreement, we will be able to fight 21st century crime with 21st century
crime-fighting tools."
*********