Universal Service
Proposals to Revise the Methodology for Determining
Universal Service Support (FCC)
Consumer Groups Balk at School Internet Hookup Plan (WP)
Publishing/EdTech
Sales of Textbooks Continuing to Defy Gloomy Predictions (NYT)
Campaigns
In California Politics, Web May Be Antidote to Money (CyberTimes)
Public TV Wins in High Court (B&C)
Minorities
Broadcasters Devising Diversity Plans (B&C)
EEO Rules Remain, for Now (B&C)
Television/Cable
The Neighborly Newscasts (WP)
Kids TV Crackdown (B&C)
High-Speed 'Net for Small Systems' (B&C)
Rate Ruling Effect Seen as Slight (B&C)
Radio
Justice Studies More Radio Mergers (B&C)
Lucent Presses Forward on DAB (B&C)
Jobs
Jobs Out of Reach for Detroiters Without Wheels (NYT)
The Tech Life: All Work? No, Play! (WP)
E-Commerce
It's Time for Banks to Dive Into E-Commerce, a Pioneer Says
(CyberTimes)
Mergers
Stake in Jones Intercable Being Sold To Comcast (NYT)
Hearst Is Paying $1.1 Billion For Pulitzer's Broadcast Unit (NYT)
BCI to Sell Comcast a 30% Interest In Jones Intercable for $500
Million (WSJ)
Privacy
For sale: Any data firms know about you (ChiTrib)
Antitrust
U.S. May Add Charges to Microsoft Case (WSJ)
Also at the FCC
Galaxy 4 Satellite
US West/Ameritech/Quest Agreement
Cramming
USAC
** Universal Service **
Title: Proposals to Revise the Methodology for Determining
Universal Service Support
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da980987.wp
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da980987.pdf
Issue: Universal Service
Description: "The Federal Communications Commission will hold an en banc
hearing on Monday, June 8, 1998, from 9:30 a.m. to 4:30 pm, in the
Commission meeting room, Room 856 at 1919 M. Street, N.W., Washington, D.C.
The Commission has invited the state members of the Federal-State Joint
Board on Universal Service to also preside at this en banc. At the en banc
hearing, the Commission and the state members of the Joint Board will review
certain proposals for revising the methodology for determining federal
universal service support for non-rural carriers. The Commission initially
decided in the Universal Service Order that the federal fund would provide
at least 25 percent of the total support necessary for non-rural carriers
(25/75 decision), beginning January 1, 1999. Recently, the Commission
stated in its Report to Congress on Universal Service that it would
reconsider the share of federal support before implementing the new high
cost support mechanism."
Title: Consumer Groups Balk at School Internet Hookup Plan
Source: Washington Post (D11,D12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/26/056l-052698-idx.html
Author: Mike Mills
Issue: Schools & Libraries
Description: The Consumer Federation of America, Consumers Union and groups
representing business telephone users, last week asked regulators at the FCC
to stop funding to wire schools and libraries to the Internet. The coalition
of consumer groups said in letters that long-distance telephone rates should
first be pushed downward and no new fees should be added to pay for the
program. The groups want the FCC to cut more than $1 billion annually from
"access charges" that long-distance carriers are required to pay to local
phone companies to begin and end long- distance calls. They then want the
money saved from the access-charge reductions to be applied toward wiring
schools and libraries, and lowering long-distance rates. "Once the FCC
eliminates these inappropriate charges and brings interstate access charges
down to cost, there will be plenty of money available to fully fund all
universal service programs and reduce long-distance rates substantially,"
said the letter by Mark Cooper, research director of the Consumer Federation
of America. The American Library Assoc. has urged the FCC not to delay or
reduce funding to the schools and libraries program. "Schools and libraries
should not be held hostage to other telecommunications policy disputes,"
said Anne Bryant, executive director of the National School Boards
Association. "We believe the cost to the industry for support of schools and
libraries has been balanced by reductions in access charges," wrote Larry
Irving, assistant commerce secretary for telecommunications in a letter to
the FCC. "The commission should endeavor to fund the program with no
additional costs or pass-through to the customers." In any event," Irving's
letter continues, "the cost to telecommunications carriers to fund discounts
to schools, libraries, and rural health care centers at the current demand
levels is no more than $1 per month, and therefore, under no circumstances,
should consumers be charged anymore."
** Publishing/EdTech **
Title: Sales of Textbooks Continuing to Defy Gloomy Predictions
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/financial/textbook-future.html
Author: Doreen Carvajal
Issue: Publishing/EdTech
Description: The US book market saw the strongest gains last year in
textbooks and instructional materials. Sales of elementary school books
increased 13% to $3 billion; college texts sales rose by 7.4%, to $2.7
billion. The overall US book market is $21 billion. The trend "belies
longstanding fears in the publishing industry that the printed page is
steadily losing favor to the electronic monitor." Libraries are also
purchasing more books. According to the American Library Association, more
than 85% of the almost 9,000 library systems in the US are reporting budget
increases for fiscal year '96. "In the late 1980s and early 1990s much of
the talk about education centered on the emerging technologies -- that the
book was dead and traditional publishing was out," said Patrick J. Quinn, of
Simba Information Inc., a market research firm. "And now, through all the
hype and hoopla about it, textbooks have actually started to sell at a
brisker pace."
** Campaigns **
Title: In California Politics, Web May Be Antidote to Money
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/25democracy.html
Author: Rebecca Fairly Raney
Issue: Campaigns
Description: The Democracy Network, a branch of the nonprofit Center for
Governmental Studies in Los Angeles, is planning to set up election sites in
ten states this year in partnership with the League of Women Voters and
other groups. After two years of trial and error, the group will begin
posting election material online. The main focus of the Web sites will
revolve around an online format where candidates can post their positions on
election issues. "The problem with television is that is squeezes it down to
the front-runners," said Tracy Westen, president of the Center for
Governmental Studies. "This technology has the capability of substantially
improving the dialogue over what television does."
Title: Public TV Wins in High Court
Source: Broadcasting&Cable (p34)
http://www.broadcastingcable.com/
Author: Dan Trigoboff
Issue: Campaigns
Description: "The Supreme Court held last week that state-owned public TV
stations may exclude minor political candidates from on-air debates, if the
decision is not based on the candidates' views. The case was closely watched
by politicians and broadcasters, since it appeared to pit the rights of
broadcasters to control the airwaves against the rights of fringe candidates
to air their views."
** Minorities **
Title: Broadcasters Devising Diversity Plans
Source: Broadcasting&Cable (p16)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Minorities
Description: In response to FCC Chairman Bill Kennard's call last month for
ideas on how to promote diversity in broadcasting, the National Assoc. of
Broadcasters (NAB) and individual broadcasters plan to introduce a series of
initiatives established to boost recruitment of minorities and women and to
further station ownership by those groups. The first of those programs will
be an equal employment opportunity (EEO) exchange of ideas at NAB
headquarters on June 8.
Title: EEO Rules Remain, for Now
Source: Broadcasting&Cable (p19)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Minorities
Description: Last month, a three-judge panel of the U.S. Court of Appeals in
Washington found most of the FCC's EEO policy unconstitutional. Regulators
are currently seeking a rehearing by all 11 judges at the appeals court.
While the commission pursues the appeal, the rules will stay in effect. "We
will continue to enforce them," said Mass Media Bureau Chief Roy Stewart
last week. "I'm very happy," said civil rights lawyer, David Honig, of the
FCC's decision to challenge last month's court ruling.
** Television/Cable **
Title: The Neighborly Newscasts
Source: Washington Post (C1,C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/26/044l-052698-idx.html
Author: Howard Kurtz
Issue: Local TV News
Description: A two-week examination by the WPost of the 5 pm newscasts on
local DC television stations suggests that local TV news programs have moved
into "a softer, user-friendly, market-tested phase." Howard Kurtz, writes in
this article that "for more than two decades, smiling anchors have engaged
in harmless banter. And reporters have long done live stand-ups from street
corners where crimes were committed hours earlier. But now the stations are
consciously carving out a kinder, gentler niche as the purveyor of consumer
advice and the chronicler of suburban lifestyles -- an approach very
different from the more straightforward, sometimes impersonal tone of
newspapers."
Title: Kids TV Crackdown
Source: Broadcasting&Cable (Washington Watch-p20)
http://www.broadcastingcable.com/
Author: Paige Albiniak & Chris McConnell
Issue: Television
Description: Last week the FCC's Mass Media Bureau said it will start
watching some television to ensure that stations comply with FCC limits on
commercials aired during children's programming. After a review of current
license renewal applications, regulators said that 26 percent have exceeded
the limit. "This level of noncompliance is unacceptable and must be
remedied," the bureau said in a public notice last week.
Title: High-Speed 'Net for Small Systems'
Source: Broadcasting&Cable (p46)
http://www.broadcastingcable.com/
Author: Price Colman
Issue: Cable/Internet
Description: Tele-Communications Inc. is developing a system that would use
a satellite to connect smaller systems to cable "Internet backbones" such as
( at )Home Network. TCI is hoping to ensure that its small systems can "keep
pace" in the high-speed data race. "We're working pretty hard at a strategy
for connectivity for high-speed data so that even our smallest systems can
be virtually presents at a major data hub with access to a high-speed
service," said TCI Chairman John Malone.
Title: Rate Ruling Effect Seen as Slight
Source: Broadcasting&Cable (p77)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Cable
Description: Cable companies won a court victory this past Friday against
the FCC's rate regulation rules. Time Warner and other companies had
challenged a 1996 decision that dealt with costs operators incurred between
Sept. 30, 1992 and the date that systems became subject to rate regulation.
Originally, operators were barred from recovering costs from the "gap
period," but the U.S. Court of Appeals in Washington said they should be
allowed to do so. Lawyers predict that the ruling will have little impact on
rates.
** Radio **
Title: Justice Studies More Radio Mergers
Source: Broadcasting&Cable (p19)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Radio
Description: Regulators at the Justice Dept. have decided to review up to
six radio mergers that have "raised red flags" with FCC officials. In
discussions with the Justice Dept., FCC officials highlighted several
pending mergers that would give companies control over more than half of a
local radio advertising market.
Title: Lucent Presses Forward on DAB
Source: Broadcasting&Cable (p41)
http://www.broadcastingcable.com/
Author: John Merli
Issue: Digital Radio
Description: Lucent Technologies announced that its Lucent Digital Radio
venture is working to deliver In-Band On-Channel (IBOC) systems that will
place both analog and digital signals within the existing spectrum. The new
technology will allow broadcasters to introduce digital sound to listeners
on their existing dial positions using current antennas and transmitters.
** Jobs **
Title: Jobs Out of Reach for Detroiters Without Wheels
Source: New York Times (A12)
http://www.nytimes.com/yr/mo/day/news/national/suburban-car-bereft.html
Author: Robyn Meredith
Issue: Jobs
Description: In Detroit, the unemployment rate is 7.2% -- more than double
the unemployment rate in suburbs. Detroit ranks last in public
transportation funding among the largest 20 metropolitan areas nationwide.
For low-income people in the Motor City, the price of a car may be out of
reach and a 25 minute car ride to a job in the suburbs may turn out to be a
90 minute bus ordeal. The situation makes it harder for suburban businesses
to hire entry-level workers. Bruce Katz, director of the Center on Urban and
Metropolitan Policy at the Brookings Institution, says the mismatch is
maddening because it "not only undermines the ability of people to get to
work in the morning in a timely way but undermines the ability of
corporations to hire workers."
Title: The Tech Life: All Work? No, Play!
Source: Washington Post (D11,D13)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/26/057l-052698-idx.html
Author: Stephanie Stoughton
Issue: Jobs
Description: As technology firms are beginning to offer "new forms of
lifestyle benefits" as they compete for hard-to-find computer programmers,
technicians, network designers and software engineers. Many companies are
choosing to build large, campus-style complexes that offer everything from
restaurants, hotels, stores and health clubs, to places to jog, bike and
hike. Such perks aren't just about making workers happy, they're about
"keeping them close" to the mother ship, said Robert Templin, president of
Virginia's Center for Innovative Technology. Some companies also are
offering stock options and 401(k) retirement savings plans in an effort to
keep these sought after employees on board.
** E-Commerce **
Title: It's Time for Banks to Dive Into E-Commerce, a Pioneer Says
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/26commerce.html
Author: Bjorn Kassoe Anderson
Issue: E-Commerce
Description: The banking industry could easily transform electronic commerce
into a mass phenomenon if they better understood how to sell technology,
according to one of the pioneers and top experts in the field. "Within the
next few years, we'll see applications that are so compelling for digital
consumers and merchants that eventually the light bulb will go off for the
banks," said Steve Mott, former senior vice president of electronic commerce
for MasterCard. Mott points out that at the moment most banks have the
wait-and-see strategy when it comes to e-commerce. But this may soon change
due to pressure from new commercial interests establishing themselves on the
Internet.
** Mergers **
Title: Stake in Jones Intercable Being Sold To Comcast
Source: New York Times (C3)
http://www.nytimes.com/
Issue: Cable
Description: The Comcast Corporation, which operates cable systems in
Baltimore, has purchased a 37% stake of Jones Intercable, a cable operator
whose strength is in systems surrounding Washington. Comcast will pay $500
million or more to BCE Inc for the stake. BCE sued Jones last year to stop
the company from using an Internet service run by the chairman of Jones.
Comcast is the 4th largest cable company in the country with 4.4 million
subscribers. It also owns a 15% stake in Sprint PCS and 10% of Primestar.
Title: Hearst Is Paying $1.1 Billion For Pulitzer's Broadcast Unit
Source: New York Times (C9)
http://www.nytimes.com/
Author: Allen Myerson
Issue: Mergers/Broadcasting
Description: Hearst-Argyle Television will pay $1.15 billion in stock and
assume $700 million in debt for the television and radio assets of the
Pulitzer Publishing Corporation. Pulitzer owns nine network-affiliated
television stations and five radio stations. The deal will make
Hearst-Argyle the second-largest non-network owned group -- reaching 16.5%
of the national TV audience. Myerson writes, "Prices for radio and
television groups have been climbing in recent years as these industries
have increasing consolidated. National advertisers strongly prefer dealing
with companies that can give them a large share of the national market."
Title: BCI to Sell Comcast a 30% Interest In Jones Intercable for $500 Million
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Gordon Fairclough & Leslie Cauley
Issue: Partnership
Description: Cable-television company, Comcast, announced it would acquire a
30 percent stake in Jones Intercable Inc. for $500 million from BCI Telecom
Holding Inc. of Canada. The deal would give Comcast a significant part of
Jone's "large and technologically advanced" cable system. Jones Intercable
has about one million subscribers, many located in the Washington D.C. suburbs.
** Privacy **
Title: For sale: Any data firms know about you
Source: Chicago Tribune (p.1)
http://chicago.tribune.com/news/nationworld/article/0,1051,CTT-20797,00....
Author: Frank James
Issue: Privacy
Description: Commerce Secretary William Daley will report to President
Clinton on corporate America's progress on protecting consumer information.
A senior administration official has said, "American business is not the
most pro-active animal in the world." Companies are not addressing privacy
concerns like collecting information from children. Since self-regulation
does not seem to be working, the administration may have to consider other
alternatives.
** Antitrust **
Title: U.S. May Add Charges to Microsoft Case
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John R. Wilke & David Bank
Issue: Antitrust
Description: Federal officials are considering adding a charge to its
antitrust suit against Microsoft Corp. The charge, already part of the state
suit, would be unfair pricing by Microsoft of its Office software package.
U.S. District Judge Thomas Penfield Jackson said Friday that the case will
go to trial Sept. 8. Judge Penfield also said he will consolidate the
Justice Dept.'s antitrust suit with the separate suit brought by 20 states.
** Also at the FCC: **
Chairman Kennard's Statement on the Galaxy 4 Satellite.
http://www.fcc.gov/Speeches/Kennard/Statements/stwek835.html
Chairman Kennard's Statement on US West/Ameritech/Quest Agreement.
http://www.fcc.gov/Speeches/Kennard/Statements/stwek834.html
Chairman Kennard's Statement on Industry Discussions on Cramming.
http://www.fcc.gov/Speeches/Kennard/Statements/stwek834.html
Press Statement of Commissioner Harold Furchtgott-Roth (re: USAC).
http://www.fcc.gov/Speeches/Furchtgott_Roth/Statements/sthfr826.html
*********