Communications-related Headlines for 6/11/99

TELEVISION
AT&T to Carry NBC's Digital-TV Programming (WSJ)
AT&T, NBC add to Olympics Cable Coverage (SJM)
Television-Set Makers Will Meet Deadline On V-Chip,
FCC Says (WSJ)
Media Powerhouses Plan Cable Network for Women (ChiTrib)

INTERNET
FEC Allows Matching Funds for Online Donations (NYT)
FCC Look To Improve Rural Internet (SJM)
AOL Subscribers Can Be Sued in Virginia, Judge Rules (CYBER)
ExploreZip Virus Hitting Internet, Experts Warn (SJM)

MERGERS/COMPETITION
SBC Asks Regulators to Reopen Its Case (ChiTrib)
Development of Competitive Networks (FCC)

WIRELESS/SPECTRUM
Caller-Pays' Bill System On Wireless Phones Backed (SJM)
State of Wireless Competition (FCC)
Greater Spectrum Efficiency (FCC)

ANTITRUST
Professor Fails Test at Microsoft Trial (WP)

TELEVISION

AT&T TO CARRY NBC'S DIGITAL-TV PROGRAMMING
Issue: Broadcast/Cable
How is this for mutual relationships in the digital age: In a deal worth more
than $850 million dollars, AT&T agreed to carry NBC's cable and broadcast
programming and high definition TV signals (Olympics included) through 2008.
Since AT&T recently purchased Tele-Communication Inc. (TCI) and is proposing an
acquisition of MediaOne, they potentially have access to over 60 million homes.
This gives MSNBC (since AT&T will carry the all news station into those
potential homes) the power to compete against its biggest competitor, Time
Warner's CNN. This also gives Microsoft a big win because of their partial
ownership of MSNBC and their $5 billion dollar investment with AT&T for an
agreement to carry Windows CE in 2.5 million of AT&T's TV set top boxes. NBC
applauded the mutual relationship and, of course, this may help AT&T score huge
points with regulators when trying to purchase Media One, as the transmission
of HDTV signals can be "a channel hog" and cable companies have been very
reluctant to get into these mutual relationships.
[SOURCE: Wall Street Journal (B2), AUTHOR: Dean Starkman]
(http://wsj.com/)

AT&T, NBC ADD TO OLYMPICS CABLE COVERAGE
Issue: TV/ Cable/Broadband
NBC and AT&T announced a landmark deal that will result in some cable coverage
of the Olympic Games and give AT&T's cable viewers a chance to see
high-definition television. The agreement gives AT&T, the nation's number two
cable operator, the right to carry NBC's 13 owned and operated TV stations and
its two cable networks until 2009. In turn, AT&T has agreed to upgrade it's
networks to deliver the network's digital signals to cable subscribers. AT&T
will pay more for CNBC and MSNBC -- on which the additional Olympic coverage
will air -- and could pass on the extra cost to subscribers. The deal with NBC
will be a model for AT&T agreements with other networks and affiliates, said Leo
Hindery, head of AT&T cable and Internet operations.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/attnbc061199.htm)

TELEVISION-SET MAKERS WILL MEET DEADLINE ON V-CHIP, FCC SAYS
Issue: V-chip
Believe it or not, the FCC says that makers of television sets may beat the
Government deadline for rolling out televisions with the v-chip, technology
that picks up coding embedded in programs coded by the broadcasters. The
rating system encoded by the broadcasters is
voluntary. Last year the FCC adopted regulations to require television
manufacturers to install v-chips and a task force will work with
broadcasters to make sure the ratings system is utilized.
Chairman Kennard believes that since the recent school shootings, this
technology has become even more important. Look for all televisions sold
after January 1, 2000 to include the v-chip.
[SOURCE: Wall Street Journal (B5A), AUTHOR: Dow Jones Newswires]
(http://wsj.com/)

MEDIA POWERHOUSES PLAN CABLE NETWORK FOR WOMEN
Issue: Cable
Turner Broadcasting System, Time, and Advance Publications (Mademoiselle and
Glamour) will team together to launch a new cable channel aimed at women.
"Women represent the fastest-growing Internet population and a television
audience that remains underserved," said Pat Mitchell, president of CNN
Productions and Time Inc. Television. Mitchell, who will lead the new
venture, said the network will "provide a destination exclusively for smart,
active women seeking relevant content and community." The new venture will
compete with Oxygen, created last year by Geraldine Laybourne, Marcy Carsey
and Oprah Winfrey.
[SOURCE: Chicago Tribune (Sec 3, p.2), AUTHOR: Tim Jones]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9906110217,00.html)

INTERNET

FEC ALLOWS MATCHING FUNDS FOR ONLINE DONATIONS
Issue: Democracy & Technology
In a move that will enable the Web to play a more important role in campaign
fund raising, the Federal Election Commission has decided to let online
donations qualify for federal matching funds. Until now the FEC didn't allow
matching funds to be applied to money raised through the Internet because it
required a written document, like a check, to track the transaction. "It's
really a matter of the political system catching up to the reality that the
Internet has developed over the last five years," said Eric Hauser, spokesman
for the Presidential campaign of former Senator Bill Bradley. The ability to
collect the matching funds on online donations gives the Internet more
legitimacy as part of political campaigns, say analysts. Online fundraising
could
be most critical to smaller campaigns that cannot afford to send mailings or
set up phone banks.
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/06/cyber/articles/11campaign.html)

FCC LOOK TO IMPROVE RURAL INTERNET
Issue: Internet/Access
The Federal Communications Commission plans to examine whether relaxed
regulations on telecommunications would help improve Internet access in rural
areas. FCC Chairman William Kennard also said that the commission will hold
field hearings to assess the concerns of rural residents. Several farm-state
Democratic Senators are urging the FCC to subsidize high-speed Internet
connections in rural communities. "There are hundreds of thousands of jobs at
stake. There's a way of life at stake in rural areas," Sen. Bob Kerrey (D-NE).
[SOURCE: San Jose Mercury News, AUTHOR: Philip Brasher]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/532566l.htm)

AOL SUBSCRIBERS CAN BE SUED IN VIRGINIA, JUDGE RULES
Issue: Internet/Legal Issues
Last month, a Federal District Court judge in Alexandria (VA) ruled that AOL
subscribers who use their AOL accounts to post defamatory messages could be
taken to court in Virginia on a libel suit. Judge T. S. Ellis 3d ruled that
because a Texas defendant has used his AOL account to post such a message, the
message must have been temporarily stored in AOL's Usenet server in Virginia
before it was propagated to other Usenet servers. The judge referenced Virginia
state law which contains a long-arm statue that gives courts power over
out-of-state defendants. Legal experts are divided on the issue, AOL has made
no comment.
[SOURCE: Cybertimes, AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/library/tech/99/06/cyber/cyberlaw/11law.html)

EXPLOREZIP VIRUS HITTING INTERNET, EXPERTS WARN
Issue: Internet
Many of you may need a patch for the most recent virus hitting the Internet
(I am afraid this happened to me early this morning and my colleagues
yesterday). The "worm" or virus is disguised as an e-mail that appears to
be a response to an earlier message which says "I received your e-mail, and
I shall reply ASAP," the ExploreZip message reads, "Till then, take a look
at the zipped docs.'" Experts warn users to delete the message. If you
respond by clicking on the attached file it will launch the virus into your
computer that will destroy Microsoft Outlook, Express and possibly other
e-mail related documents. (Ours destroyed stuff in MS Word, not fun)
Computer security companies Network Associates (http://www.nai.com),
Symantec Corp. (http://symantec.com) and Trend Micro Inc.
(http://www.antivirus.com) are offering virus protection patches that you
can downloaded from their sites to identify and eliminate the virus.
[SOURCE: San Jose Mercury News]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/058165.htm)

MERGERS/COMPETITION

SBC ASKS REGULATORS TO REOPEN ITS CASE
Issue: Mergers
(Wait. Hold on...we were just kidding. Of course we'd like to reopen the
case.) Van reports that the Bells blinked in their staring contest with the
Illinois Commerce Commission. Ameritech and SBC have filed a petition asking
the ICC to reopen the merger approval process so the companies can provide
more evidence. "We've accepted that the commission wanted this information
and would only consider it if we reopen the record," said Selim Bingol, an
SBC spokesman. "So that's what we're doing." Reopening the case could push
the approval process back three months, but SBC has asked that the ICC make
a decision by July 23. But even with the new evidence, opponents still don't
like the deal: "Nothing they've proposed goes far enough to assure that this
merger won't harm competition, push rates higher and jeopardize service
quality," said Martin Cohen, executive director of the Citizens Utility
Board. "These meager improvements they've proposed don't begin to go far
enough to make this deal acceptable to consumers."
[SOURCE: Chicago Tribune (Sec3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9906110148,00.html)

DEVELOPMENT OF COMPETITIVE NETWORKS
Issue: Competition
The Federal Communications Commission initiated a proceeding intended to
facilitate the development of competitive telecommunications networks that
will provide consumers with alternatives to services provided by the
incumbent wireline local exchange carriers (LECs). A major goal of the
Telecommunications Act of 1996 (1996 Act) is the availability of competitive
local telecommunications services, including advanced and innovative
services, to all Americans. The 1996 Act contemplates that competitors will
offer local telecommunications services by reselling the incumbent LECs'
services, using unbundled elements of the incumbent LECs' networks, and
using their own network facilities. Only facilities-based competition,
however, can bring the fullest benefits of competition to consumers and
fully break down the incumbent LECs' dominant position. The adopted Notice
of Proposed Rulemaking (NPRM) and Notice of Inquiry (NOI) furthers the FCC's
ongoing efforts to promote facilities-based local competition by seeking
comment on potential action in several specific areas.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9023.html)

WIRELESS/SPECTRUM

'CALLER-PAYS' BILL SYSTEM ON WIRELESS PHONES BACKED
Issue: Wireless
Cell phone users, you may soon be able to make your friends and family foot the
bill when they call your wireless number. The Federal Communications Commission
is considering rules that would offer a new billing structure to wireless
customers. Currently, mobile phone users must pay for both incoming and
outgoing calls, but, if the FCC plan is approved, users would have the option of
having the individuals who place the calls charged instead. The commission hopes
that a new pricing structure would make wireless more of a viable option for
lower income customers. There's also the hope that the plan would result in
competition between incumbent local carriers and wireless providers, hastening
"the day when our wireless phone might very well be our only phone (and)
wireless is a real substitute for wireline," said Chairman Kennard.
[SOURCE: San Jose Mercury News, AUTHOR: Deborha Kong]
(http://www.mercurycenter.com/svtech/news/indepth/docs/wire061199.htm)
See Also:
CELL PHONE BILLING MAY CHANGE
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/11/061l-061199-idx.html)
FCC OFFERS RULES ON PHONE SERVICE
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/11cell.html)
CALLING PARTY PAYS
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9021.html)

STATE OF WIRELESS COMPETITION
Issue: Wireless
The Federal Communications Commission (FCC) adopted its annual report on the
state of competition in the commercial mobile radio services (CMRS)
marketplace. The Fourth Report evaluates competition using consumer-oriented
categories, regardless of their regulatory classification. The Fourth Report
concludes that competition has increased since the release of last year's
report, especially within the mobile telephony sector of CMRS. This
increased competition has meant lower prices and more choices for American
consumers.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9024.html)

GREATER SPECTRUM EFFICIENCY
Issue: Spectrum/Wireless
The Federal Communications Commission adopted rules which more readily
facilitate the use of "centralized trunking" by private wireless spectrum
users. This action is another example of how the FCC is promoting spectrum
efficiency through consolidation and better coordination of private wireless
spectrum. Centralized trunking is a practical and effective method of
improving spectrum-use efficiency. Efficiencies are realized by a radio
system's using multiple radio channels that are assigned to users by a
computer that either assigns a user the first available channel or places
the user in a queue to receive the next available channel. These revised
rules, which more readily facilitate trunking, are part of the FCC's broader
"Spectrum Refarming" proceeding. Spectrum Refarming began in 1991 when the
FCC, noting that the number of licensees in the Private Land Mobile Radio
(PLMR) services bands had grown dramatically, initiated a proceeding to
consider service rules and technological proposals designed to improve the
efficient use of this spectrum.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9022.html)

ANTITRUST

PROFESSOR FAILS TEST AT MICROSOFT TRIAL
Issue: Antitrust
Edward W. Felten, a Princeton University computer scientist and professor,
failed yesterday to remove an Internet browsing function from Microsoft's
Windows '98 software. Microsoft lawyers were delighted, Judge Thomas Penfield
Jackson was unaffected. Removing the Internet browsing function from Windows
'98 could benefit consumers by saving computer memory, making the machine run
faster, and could help prevent the spread of viruses, said Felten, a
government witness. The government contends that Microsoft's Internet Explorer
browser and its Windows operating system are two different products that should
be distributed separately. By combining the two, the government alleges,
Microsoft is using the market clout of Windows, which runs on 90% of the
world's new personal computers, to illegally dominate the browser market.
Felten was testifying once again to rebut the subsequent testimony of several
Microsoft executives who asserted that the browser and operating system are
inexorably intertwined and that Felten's browser-removal program slows down
Windows. Ultimately, Judge Jackson suggested that he could see a benefit from
allowing consumers to get Windows without a browser, to avoid the spread of
electronic viruses, and denied Microsoft's request for a second demonstration
to affirm its first point.
[SOURCE: Washington Post (E2), AUTHOR: Rajiv Chandrasekaran]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/11/066l-061199-idx.html)
See Also:
MICROSOFT AGAIN DUELS WITH WEB BROWSER WITNESS
[SOURCE: CyberTimes, AUTHOR: Joel Brinkley]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/11soft.html)

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...and we're outta here. Have a great weekend.