Communications-related Headlines for 5/5/99

CHILDREN & MEDIA
Parents, Kids, and Communications Page (FCC)
Gore Lets Parents In on Children's Internet Safeguards (WP)
Summit Tackles Concerns About Net (SJ Merc)

EDTECH
FCC Mulls Boosting Internet Funding For Schools, Libraries (WSJ)

MERGERS/COMPETITION
Comcast, AT&T Accord, Abandon Mediaone Bid (WSJ)
SBC Pledges Open Market in Illinois (ChiTrib)
SBC-Ameritech Public Forum Extended for Second Day (FCC)
Speech: A Competitive Call to Arms (FCC)
Telmex To Buy Sprint's Interest In Venture In The US (WSJ)

POLITICS
Congress Builds A Presence On The Web, Study Finds (CyberTimes)

INTERNET
Record Label Will Distribute Music Online (NYT)
Internet Address Firm to Be Probed (WP)
AOL Tests Free Calls To Internet In UK (SJ Merc)

CHILDREN & MEDIA

PARENTS, KIDS, AND COMMUNICATIONS PAGE
Issue: Children & Media
Chairman Kennard Announces Launch of "Parents, Kids, and Communications
Page" (http://www.fcc.gov/parents_information/) on FCC Web site in Remarks
at the Annenberg Public Policy Center Conference on Internet and the Family in
Washington (DC) (see http://www.fcc.gov/Speeches/Kennard/spwek916.html).
From Press Release: Noting that some parents, while excited about the
opportunities that the Internet offers, are overwhelmed by a medium that
seems too vast to control and too complicated to understand, William E.
Kennard, chairman of the Federal Communications Commission (FCC), offered
some help via the FCC's own Web site. In a speech at the Annenberg School of
Public Policy National Conference on the Internet and the Family today in
Washington, DC, he announced the inauguration of a "Parents, Kids, and
Communications Page" on the FCC Web site. The page will give parents
easy-to-understand information on some of the tools available to them to
provide a "chaperone" for their children as they explore the vast landscape
of the Internet. "In one easy-to-use, easy-to-find place www.fcc.gov -- we
have included information on a whole range of filtering software," Chairman
Kennard said. He added, "With one click of the mouse, parents will be able
to learn about these products, how they work, and how much they cost. With
one click of the mouse, parents will be able to take the steps they need to
protect their kids. We also included on the Web site information on how to
block 1-900 calls and on how to get a cable 'lock-box' to block out the
channels that you don't want your children to see." The site also includes a
section explaining the TV ratings system and the V-chip. With the V-chip,
parents can use the new TV ratings system that is in place to see what they
don't want their kids to watch, and then program the chip to block them.
Chairman Kennard said, "I am proud to say that because of the hard work of
the President, Vice President, and Congress, in two months time, half of all
new TV sets in this country will have this little silicon chip - the V-chip.
And, by January 2000, all TVs will have it."
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9024.html)
See also:
SUMMIT TACKLES CONCERNS ABOUT NET
Issue: Internet
Powerfully mixed feelings about the American family and the Internet were
quantified yesterday at a Washington summit called to introduce and debate
the results of a national survey on parents' attitudes about their
children's experiences online. The meeting included scholars, librarians,
government regulators, and other experts in the field. Joseph Turow, an
Internet expert at the University of Pennsylvania who directed the survey,
said, "Kids can go anywhere" and that produces rewards and dangers. Federal
Communications Commission Chairman William Kennard said the Columbine
killings exacerbated parental fears about the Information Age but renewed
the need for parents to talk to their children about everything, including
where they go on the Internet. Some at the meeting worried that filtering
software would inhibit free speech and
honest inquiry. Prior to the meeting Ann Symons, president of the American
Library Association, stressed the importance of teaching children critical
thinking skills and worried about limiting access, especially in libraries.
[SOURCE: San Jose Mercury News, AUTHOR: Mary Otto]
(http://www.mercurycenter.com/svtech/news/indepth/docs/family050599.htm)

GORE LETS PARENTS IN ON CHILDREN'S INTERNET SAFEGUARDS
Issue: Internet
Democratic presidential candidate Al Gore plans to unveil today computer
safeguards negotiated with industry executives that will make it easier for
parents to keep their children's online explorations safe. The package of
resources includes safety tips, a guide to child-friendly sites, and tools
for searching the Internet. The companies will also offer links to makers of
"filtering" software. Although much of this information was previously
available, the new initiative aims at placing such resources "one click
away" from popular Web sites. Gore's efforts are the most visible piece of
an initiative that cuts across several agencies. Federal Communications
Commission Chairman William Kennard yesterday announced a Parents, Kids and
Communications section on the FCC Web site.
[SOURCE: Washington Post (A6), AUTHOR: Ceci Connolly & John Schwartz]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/05/123l-050599-idx.html)
See also:
MARKETING VIOLENCE TO CHILDREN
Issue: Media & Children
Links to opening statements from the Senate Commerce Committee hearing May 4.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/hearings/hearings.htm)

EDTECH

FCC MULLS BOOSTING INTERNET FUNDING FOR SCHOOLS , LIBRARIES
Issue: EdTech
Chairman of the Federal Communications Commission, William Kennard, is
interested in increasing funding for the E-rate, the agency's program to
connect schools and libraries to the Internet. Chairman Kennard has
requested that the program receive $2.5 billion in 2000, which is about a $1
billion increase over the original $1.9 billion authorized for the first 18
months. The increase, according to William Kennard, is necessary to ensure
that undeserved rural school districts can participate in the Digital Age.
There is, however, strong resistance to the schools and libraries program
both with telecommunications companies-that pay for the program through
taxes -- and on Capitol Hill. Rep Billy Tauzin, Chairman of the House
Telecommunications Subcommittee and long time E-rate foe, has pledged to
announce a bill to abolish the program
[SOURCE: Wall Street Journal (B6), AUTHOR: Kathy Chen ]
(http://wsj.com)

MERGERS/COMPETITION

COMCAST, AT&T ACCORD, ABANDON MEDIAONE BID
Issue: Mergers
AT&T has reached an accord in which Comcast will receive 2 million cable
subscribers in exchange for dropping its bid for MediaOne. Comcast has also
agreed to allow AT&T to use its cable lines to offer phone service to
Comcast's 9 million subscribers. This agreement clears the way for AT&T to
proceed with its $54 billion dollar bid for the MediaOne cable company.
While AT&T is currently in negotiations to sway Microsoft from also making
offer, it is still possible that other parties, such as the software giant
or MCI WorldCom, could enter into the mix with bids of their own. With the
addition of MediaOne, AT&T could reach almost 60% of all American households
with cable lines. Regulators will likely hold the deal to close scrutiny
because of AT&T's growing hold on the cable industry.
[SOURCE: Wall Street Journal (A3), AUTHOR: Leslie Cauley and Rebecca
Blumenstien]
(http://wsj.com)

SBC PLEDGES OPEN MARKET IN ILLINOIS
Issue: Mergers
(Hand over heart) SBC General Counsel Jim Ellis promised that the company
would open the Illinois local phone market to competition once its takeover
of Ameritech is approved. "What assurances do we have, other than your
word?" asked Illinois Commerce Commissioner Terry Harvill, who noted that
when SBC took over Pacific Bell in California, its executives pledged that
the combined firm would compete in new markets, including Chicago. But soon
after that deal closed, those plans were changed. "If we approve this
merger," said Commissioner Harvill, "there are certain assurances we need."
Mr. Ellis said winning approval to get into the long distance business is
incentive enough to open local markets.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/business/businessnews/article/0,1051,SAV-99050503
48,00.html)

SBC-AMERITECH PUBLIC FORUM EXTENDED FOR SECOND DAY
Issue: Mergers
A Public Notice issued on April 28, 1999, announced that a public forum will
be held on Thursday, May 6, 1999, from 10:30 am to 12:00 pm to report on the
progress of discussions that Commission staff has been holding with SBC
Communications Inc. (SBC) and Ameritech Corporation (Ameritech) regarding
their pending transfer of control applications. Because of the significant
number of participants interested in commenting, the hours of the Common
Carrier Bureau's public forum have been extended as follows: Thursday, May
6th from 10:30 am to 5:00 pm and Friday, May 7th from 9:00 am to 12:00 pm
Both sessions will be held at the Federal Communications Commission, 445
12th St., SW, Washington, DC, in the Commission Meeting Room. After a brief
review of the status of discussions between Commission staff and the
Applicants, members of the public will be invited to comment. Each member
of the public must confine his or her remarks to 5 minutes. This time
limitation will be rigorously enforced so as to allow the greatest number of
parties to participate. Parties will be invited to speak in the order in
which they signified their intentions. It is possible that all interested
parties may not have the opportunity to make oral comments by noon on May
7th. Consequently, the Commission urges members of the public to file
written ex parte comments at any time during the pendency of this proceeding
to ensure that their views are presented. A transcript and a videotape of
the forum will be placed in the public record.
[SOURCE: FCC]
(http://www.fcc.gov)

SPEECH: A COMPETITIVE CALL TO ARMS
Issue: Competition/Telephony
Chairman Kennard's Speech at the Association of Local Telecommunications
Services Convention in Nashville (TN): "The Internet, unlike the railroad,
can come into every office, every home in America, even in our briefcases
and pockets. We have the capability to bring broadband technologies to all
Americans wherever they live and wherever they may go. With cable, copper,
wireless, and satellite, we can build on-ramps to the Information
Superhighway for anyone anywhere. No town, no community has to be condemned
to becoming a ghost town in the New Economy. Part of the reason for this
flexibility is technological bits of data are a lot easier to maneuver than
iron and steel. But it is also because Congress made the right policy
decisions when it came to deciding what kind of telecommunications system we
wanted to establish for the 21 st century. When drafting the
Telecommunications Act of 1996, Congress wisely reached back to a value as
old as America itself: choice. The idea is that competition would drive
deployment of the networks of the future. And that once given an array of
options, individuals can best decide what is best for them." In his speech,
Chairman Kennard said that the Telecom Act of 1996 is working...that
"incentives are not lined up just right. But the good news is that it's
working." Chairman Kennard praised the work of ALTS members who are working
every day to compete. However, he said that it is not enough that "only
large businesses have choice in local phone service. Because the goal is to
bring all Americans the benefits of a competitive marketplace, we
must redouble our efforts to bring choice to residential subscribers --
choice in local phone service and choice in broadband access." Chairman
Kennard also said that the agency needs to ensure that "any merger serves
the public interest. And a big part of that interest is making sure that
competition in telecommunications from local phone service to broadband is
not stifled." (Summary courtesy of NECA).
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/spwek915.html)

TELMEX TO BUY SPRINT'S INTEREST IN VENTURE IN THE US
Issue: International/Alliances
Yesterday, Sprint and Telefonos de Mexico (Telmex) announced plans to
devolve their alliance. Telmex will purchase Sprint's 50% stake in
Telemex-Sprint Communications, a year old venture that offers long-distance
services to Hispanic households in the US. Telemex, the first foreign
telephone company to receive FCC approval to operate in the US, has plans
to take the venture in new directions, including the selling of bank draft,
money orders and other non-telecommunications products.
[SOURCE: Wall Street Journal (A14), AUTHOR: John Friedland and Nicole Harris]
(http://wsj.com)

CONGRESS BUILDS A PRESENCE ON THE WEB, STUDY FINDS
Issue: Internet/Politics
An American University study found that all Senators and 94% of
Representatives have official Web sites. The study, which evaluated sites
based on user friendliness, use of technology, content, and constituent
services,
is meant to be a benchmark to measure future sites and encourage legislators to
improve their Web sites. Don Goff, professor at University of Maryland and key
researcher for the study, said he was impressed with the depth of information
available -- meeting agendas, full text of legislation, and lawmakers'
positions -- on sites. The study, however, found that most sites did not use
the full potential of the technology, such as foreign language Web
translators. Instead
of an interactive dimension, sites usually offered people a form to print out
and send in. Brian Bilbray (R-CA) was listed as having one of the best Web
sites. His site opens with a formal portrait fading into a photo of Bilbray
surfing and is updated by staff members twice a week. The surfing theme is
intended to catch the attention of his San Diego constituency. Another
report released this week by Congressional Management Foundation, a
nonprofit that provides training and management reviews for Congress, found
that Congressional sites need to improve access to legislative information.
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/05congress.html)

INTERNET

INTERNET ADDRESS FIRM TO BE PROBED
Issue: Internet
Ownership of the database of 4 million customer names and electronic
addresses created by Network Solutions Inc. is sparking an antitrust
investigation by the Justice Department. NSI's responsibility as a monopoly
contractor of the government to handle the assignment of most Internet
addresses is ending, and other firms are being allowed to perform the same
function. Several NSI rivals argue that access to the customer database is
central to their ability to compete against the firm. NSI, however, says
that it has exclusive right to the database because of "intellectual
property" rights specified in the government contract. NSI does permit
individual "look ups" through its "WhoIs" service, but it does not provide
the information in bulk form.
[SOURCE: Washington Post (E1), AUTHOR: Rajiv Chandrasekaran]
(http://www.washingtonpost.com/wp-srv/business/daily/may99/nsi5.htm)

RECORD LABEL WILL DISTRIBUTE MUSIC ONLINE
Issue: E-Commerce
Universal Music announced Tuesday that it is investing in technology to sell
music over the Internet. Universal is working with Intertrust Technologies
to develop software that would deliver music to computers, embedded with a
code intended to prevent someone from playing the music without first paying
for it.
Universal's deal with Intertrust comes before the industry group, Recording
Industry Association of America, has come up with a standard for selling
recordings as data via the Internet. The group has been working with Universal
to come up with an alternative to MP3 -- free technology for delivering music
online that allows illegal copying of music. Larry Kenswil, head of e-commerce
at Universal, said they couldn't wait for the industry to decide on a standard
in order to have the software up and running in time for Christmas sales. An
ad hoc industry group, Secure Digital Music Initiative, which has been working
on developing an industry standard, will meet four more times before releasing
a standard in June. While head of initiative says they are not troubled by
Universal's efforts, Mark Hardie, a digital music analyst with Forrester
Research says Universal is "breaking ranks," by not waiting for the industry to
decide. Kenswill of Universal disputes this assertion and says Intertrust
Technology will be flexible in order to adjust to whatever industry standard
emerge.
[SOURCE: New York Times, (C1), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/05music.html)

AOL TESTS FREE CALLS TO INTERNET IN UK
Issue: Internet
Britain's AOL is offering new pricing packages for its Internet service in
an effort to recapture ground lost to rival service providers, such as
electrical retailer Dixons' Freeserve. One package, priced around $24.40
monthly, gives subscribers free telephone connections to access its Internet
service. In the UK customers have to pay the cost of local telephone calls
connecting them to the Internet. The major draw to Freeserve, now Britain's
biggest service provider with more than a million subscribers, has been free
Internet service, but callers still must pay for the local calls. Today pay
TV giant BskyB also announced plans for a June 1 launch of its own free ISP
called skynow.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/410308l.htm)

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