Universal Service: E-Rate
Lawmakers from Both Sides Criticize FCC E-Rate Cut
(TelecomAM)
Debate on Wiring School for the Internet Ignores a Larger, Sillier
Phone Subsidy (WP)
Internet
Privacy Issues Related to Electronic Commerce (NTIA)
Times Guide to Entertainment Opens on the Internet Today (NYT)
Mergers -- Get 'Em While They're Hot
Leahy to Introduce Bill Restricting Bell Company Mergers
(TelecomAM)
Nortel to Buy Bay Networks for $9 Billion (TelecomAM)
Phone Giant To Acquire Bay Networks (NYT)
Northern Telecom To Buy Bay Networks (WP)
Nortel Agrees to Acquire Bay Networks (WSJ)
Teleglobe and Excel Create 4th-Largest Long Distance Carrier
(TelecomAM)
MCI Likely to Sell Rest of Internet Business for Merger Approval
(TelecomAM)
Cable
Microsoft and Compaq to Buy 10% Stakes in Road Runner (NYT)
Microsoft, Compaq Make Net-Access Bet (WSJ)
Advertising: Ziff-Davis Pushes ZDTV (NYT)
** Universal Service: E-Rate **
Title: Lawmakers from Both Sides Criticize FCC E-Rate Cut
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The FCC's June 12 decision to cut $1 billion from the e-rate
program does not have many supporters in Congress. Rep. Dingell (D-Mich.),
senior Commerce Committee Democrat, said he supports the e-rate, but said "I
am not sure that making a smaller illegal program out of a large illegal
program serves that purpose." The Chairmen of the House and Senate Commerce
Committees spoke out against the move on Friday. Olympia Snowe (R-ME) and
Jay Rockefeller (D-WV) said: "It is disappointing that the FCC cut back this
important program because of pressure from the companies." However it is
important to remember that "we are still moving forward -- more slowly, but
steadily." AT&T and MCI announced that they will reduce charges on
consumers' bills to reflect the cut. They said they will review the new
funding plan before deciding how they will reduce surcharges.
Title: Debate on Wiring School for the Internet Ignores a Larger, Sillier
Phone Subsidy
Source: Washington Post (C3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/16/034l-061698-idx.html
Author: Allan Sloan
Issue: E-Rate
Description: Allan Sloan, Newsweek's Wall Street editor, begins his piece
with a rather-humorous view of the "on-coming political battle" revolving
around the e-rate program. Next he offers a brief history of the program and
then moves into the arrival of "earthquake city" on May 26, when AT&T Corp.
announced to the FCC that it would start to charge its customers an
additional 5 percent for interstate long-distance calls -- and to "break it
out as a surcharge on millions of phone bills." Joel Lubin, an AT&T vice
president, said about the announcement: "We want only to recover the costs
we're incurring for universal service." (Note: "Universal service includes
costs for not only schools-and-libraries assessment but also the rural and
high-cost subsidies that AT&T and other carriers had absorbed for years.")
Sloan sees the problem not in whether phone companies want to collect more
than their additional schools-and-libraries costs but in the fact that phone
service is incredibly complicated. "If you insist on phone bills showing all
the subsidies, your monthly bill will be the size of the Manhattan phone
book," says former FCC chairman Reed E. Hundt. "Untangling all of this is
like trying to straighten out an elephant's intestines." A delightful prospect.
** Internet **
Title: Privacy Issues Related to Electronic Commerce
Source: NTIA
http://www.ntia.doc.gov/ntiahome/privacy/index.html
Issue: Electronic Commerce/Privacy
Description: "The Department of Commerce, along with the Office of
Management and Budget has been asked to report to the President on industry
efforts to establish self-regulatory regimes to ensure privacy online and to
develop technological solutions to protect privacy. The President also
directed the Commerce Department and the Office of Management and Budget to
ensure that means are developed to protect children's privacy online. The
Department of Commerce requests comments on various aspects of Internet
Privacy including the effectiveness of self regulation for privacy.
Specifically, the Department of Commerce seeks comment on the staff
discussion paper "Elements of Effective Self Regulation for Protection of
Privacy." It also asks for responses to specific questions concerning online
privacy protection. In addition, the Department seeks input on the specific
instances in which government action may be necessary to protect privacy on
the Internet."
Title: Times Guide to Entertainment Opens on the Internet Today
Source: New York Times (C10)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16nytoday.html
Author: Saul Hansell
Issue: Internet Content
Description: New York Today www.nytoday.com will be available starting
today. The New York Times' Internet service will offer information about
entertainment, restaurants, and shopping in New York City. The service will
compete with Microsoft's New York Sidewalk, America Online's Digital Cities
New York, and Citysearch's Citysearch New York. "Local advertising is the
biggest and most profitable market for advertising," said Brian C. Oakes, an
analyst with Lehman Brothers who follows newspapers and Internet companies.
"It is critically important for newspapers to win the local market, both in
print and on line."
** Mergers -- Get 'Em While They're Hot **
Title: Leahy to Introduce Bill Restricting Bell Company Mergers
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: Sen. Patrick Leahy's (D-VT), the ranking Democrat on the Senate
Judiciary Committee, is expected to introduce legislation today that "would
bar local phone
companies with more than 5 percent of the nation's phone lines from merging
unless: 1) The Justice Department finds that the deal will promote
competition for exchange and access services -- 2) The FCC finds that the
companies involved in the deal have implemented the interconnection and
unbundling requirements in Sections 251 and 252 of the Telecom Act." The
Judiciary Committee is holding a hearing today on merger policy. [See the
Senate Judiciary Committee homepage http://www.senate.gov/~judiciary/
and/or Sen Leahy's page http://www.senate.gov/~leahy/]
Title: Nortel to Buy Bay Networks for $9 Billion
Source: Telecom AM
http://www.telecommunications.com/am/
Title: Phone Giant To Acquire Bay Networks
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16nortel.html
Author: Seth Schiesel
Title: Northern Telecom To Buy Bay Networks
Source: Washington Post (C1,C4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/16/038l-061698-idx.html
Author: Mike Mills
Issue: Mergers
Description: Nortel will purchase Bay Networks for $9.1 billion in stock --
the largest ever telecom equipment makers merger. Nortel said the deal
creates a "new category" of telecom manufacturers that use Internet Protocol
networks, allowing the companies to "redefine the center of the information
industry -- the unoccupied space where data and voice networks,
driven by the Internet, are expected to converge." The deal will create a
$17.7-billion company with 80,000 employees.
Title: Nortel Agrees to Acquire Bay Networks
Source: Wall Street Journal (A3,A6)
http://wsj.com/
Author: Stephanie N. Mehta & Lee Gomes
Issue: Mergers
Description: Northern Telecom Ltd. agreed to purchase Bay Networks Inc.,
which makes equipment that helps corporations manage data traffic, for $7.68
billion in stock valued at $32.40 a share. Nortel's takeover could further
accelerate the consolidation already taking place in the industry as
companies seek to offer customers a more complete menu of systems to handle
growing streams of voice, video and data traffic. By acquiring Bay, Nortel
will have a "stronger foothold" with corporate customers while possibly
increasing the line of products it offers to telephone and Internet-access
companies.
Title: Teleglobe and Excel Create 4th-Largest Long Distance Carrier
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: Canadian phone company Teleglobe will buy Excel Communications
for $3.1
billion in stock. The deal will create the fourth-largest long distance
company in North
America. Excel resells long distance service using names such as "Dial and
Save" through a network of 400,000 mostly part-time independent sales
representatives. Teleglobe will own 51.5 percent of the new company with
Excel controlling the remainder.
Title: MCI Likely to Sell Rest of Internet Business for Merger Approval
Source: Telecom AM
http://www.telecommunications.com/am/
Title: More of MCI Internet Unit Said to Be for Sale
Source: New York Times (C2)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16mci.html
Author: Seth Schiesel
Issue: Mergers
Description: In order to win approval of the proposed $37 billion merger
with WorldCom, MCI is likely to sell the rest of its Internet business.
WorldCom would retain all of its Internet business. Merrill Lynch has said
that speculation about approval of the deal is "drastically overblown" and
more sales or action "would not materially alter" the deal.
** Cable **
Title: Microsoft and Compaq to Buy 10% Stakes in Road Runner
Source: New York Times (C4)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16roadrunner....
Author: Lawrence Fisher
Title: Microsoft, Compaq Make Net-Access Bet
Source: Wall Street Journal (A3,A8)
http://wsj.com/
Author: David Bank & Leslie Cauley
Issue: Cable
Description: Microsoft and Compaq will each invest $212.5 million in Road
Runner, the joint Time Warner-Mediaone Group venture in high-speed cable
modems. The software and computer giants are seen to have an interest in
fostering the growth of high-speed Internet connections in homes. Without
greater bandwidth, consumers may se little reason to upgrade their computers.
Title: Advertising: Ziff-Davis Pushes ZDTV
Source: New York Times (C10)
http://www.nytimes.com/library/tech/98/06/biztech/articles/16tv-ziff-davis.
html
Author: Jane Levere
Issue: Advertising/Cable/InfoTech
Description: Ziff-Davis is counting on a $10 million ad campaign to
introduce a new, 24-hour cable channel devoted to computing and the
Internet. Ziff-Davis, a high-tech media and marketing company, will invest
$100 million in ZDTV over the next two years. The ad campaign will have
three audiences: cable system operators, potential viewers, and potential
advertisers.
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