Communications-related Headlines for 6/1/98

Digital Television
Unbundling DTV and Free Time (B&C)
Must-Carry Draft Expected (B&C)
DTV Tower Strike Force (FCC)

Television/Cable
Parents Taking to Ratings (B&C)
Don't Box Us In, Says Cable (B&C)

Media & Politics
Money and Polls Take Center Stage in California Race (NYT)

Internet Economics
Long Boom or Bust (NYT)
Technology: Overbidding on Internet Stocks Has
Broad Consequences (NYT)
Creating a Silicon Valley in the Washington Area (NYT)

Internet
Los Angeles Libraries Experience Renaissance With Computer Use
(CyberTimes)
In Brief (B&C)
Netscape Uses Browser to Beef Up Web Business (WSJ)

Technology
Intel Delays The Delivery of Key Chips (WSJ)
Marshaling Microchips for a Better Dog Tag (WP)

Privacy
Protecting Privacy (WP)

Newspapers
An On-Line Critic Tackles the Big Papers (NYT)
Some Newspapers Try No-News Front Page (NYT)

Minorities & Jobs
Lutheran Church-Missouri Synod v. FCC & United States (FCC)

Radio Ownership
In Brief (B&C)
Joint Statement: Radio Assignment and Transfer in Redding, CA
(FCC)

Advertising
TV Guide to Introduce Coverage of Advertising (NYT)

** Digital Television **

Title: Unbundling DTV and Free Time
Source: Broadcasting&Cable (p15)
http://www.broadcastingcable.com/
Author: B&C Writers of Closed Circuit
Issue: Digital TV/Public Interest
Description: FCC officials have decided to "separate their planned efforts
to write digital TV public interest rules from their study of proposals" to
give political candidates free air time. The proposed inquiry is now
focusing on ways to enhance political debate. Officials say that regulators
will take up the digital TV public interest issues in a later rulemaking.

Title: Must-Carry Draft Expected
Source: Broadcasting&Cable (p17)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Digital TV/Cable
Description: As early as this month, FCC commissioners plan to launch an
effort to decide how must-carry rules will be applied to digital TV
broadcasts. Susan Fox, senior legal advisor to FCC Chairman William Kennard,
told a Washington broadcast conference last week that commissioners should
receive draft plans for the rulemaking proposal in June.

Title: DTV Tower Strike Force
Source: FCC
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1998/nrmm8017.html
Issue: Digital Television
Description: The Federal Communications Commission today announced the
creation of a DTV tower strike force, chaired by Commissioner Susan Ness, to
target potential problems in the implementation of digital broadcast
television (DTV) and to work with local authorities and broadcasters to
expedite implementation of DTV. Commissioner Ness said, "The FCC is
committed to doing everything possible to help the television viewing public
quickly receive the dramatic benefits of new digital television. This group
will work to help resolve any problems that could slow down the DTV
implementation process."

** Television/Cable **

Title: Parents Taking to Ratings
Source: Broadcasting&Cable (p16)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: V-chip
Description: Although more than half of the parents surveyed say they use
the revised TV ratings system in deciding what programs their children can
watch, almost 70 percent say they do not plan to purchase a new V-chip
equipped set, according to a study of 1,358 parents and 446 children
conducted by the Kaiser Family Foundation. However, 65 percent of parents
said they would use a V-chip equipped set if they had one, and 78 percent of
the children said they approved of the V-chip design to "allow parents to
block access to shows that get certain ratings, so their kids won't be able
to watch." But more than 35 percent (one-third) of kids interviewed said
they would try to get around such blocking techniques so they could watch
forbidden programs. "The Kaiser study shows that the TV parental guidelines
are doing what they were designed to do -- provide parents with advance
cautionary information to assist them in monitoring the television watching
of their young children," said Jack Valenti, president of the Motion Picture
Association of America and architect of the TV ratings system.

Title: Don't Box Us In, Says Cable
Source: Broadcasting&Cable (p15)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Cable
Description: Cable operators want the FCC to allow them to continue
providing settop boxes that incorporate both "channel surfing" and security
functions. "A prohibition on the provision of such integrated boxes...would
be passed on to the consumer in the form of lower sale or lease prices," the
National Cable Television Association said in a submission to FCC
commissioners last week. Commissioners are considering rules to implement
provision of the 1996 Telecommunications Act that "mandate the commercial
availability of settop 'navigation' devices." At the end of last week, FCC
officials were still "struggling to wrap up a rulemaking" that they say is
"fraught" with technical complexity.

** Media & Politics **

Title: Money and Polls Take Center Stage in California Race
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/washpol/calif-elect-gov.html
Author: Richard Berke
Issue: Media & Politics
Description: California voters will pick nominees for governor today in "an
election that has rekindled a debate over the potency of television
commercials and underscored the perils for wealthy candidates who finance
their own campaigns," Berke writes. In the Democratic primary for governor,
Alfred Checchi has spend some $40 million -- mostly on TV ads. The amount is
a new record for any non-Presidential election. Rival Jane Harman, a Member
of Congress from Los Angeles, has spend nearly $15 million of her husband's
fortune. But the expected winner is Lieutenant Governor Gray Davis, a
twenty-five-year political veteran who has raised money himself and spend
much less on TV advertising. A veteran pollster said, "It's an extraordinary
case of an inverse relationship between advertising and results. It's going
to be the kind of story they'll put in advertising textbooks because
everyone thinks if you put more money in advertising it sells more."
[Also see NYT (A12), "Last in Flash and Cash, an Underdog Pulls Ahead" by
Todd Purdum
http://www.nytimes.com/yr/mo/day/news/washpol/calif-elect-gov-davis.html]

** Internet Economics **

Title: Long Boom or Bust
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01futurist.html
Author: Steve Lohr
Issue: InfoTech
Description: Peter Schwartz sells big ideas. He has a vision of something he
calls "The Long Boom," an era between now and 2020 in which there will be a
global economic boom fueled by technological advance. Part of the vision is
a telecommunications revolution brought to all the world by satellite
projects, high-speed Internet connections, telephony and video. He sees
phone and Internet access for *everyone* by 2005.

Title: Businesses Explore Cyberauctions
Source: New York Times (C5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01auction.html
Author: Claudia Deutsch
Issue: Electronic Commerce
Description: "Auctioneers without Internet auctions will be out of business
in five years," said Michael Brader-Araje of Open Site Technologies
http://www.opensite.com. There is a growing industry serving
business-to-business Internet auctions. Forrester Research Inc estimates
that $8.7 billion in goods will be auctioned this year online and that
number is expected to grow to $52.6 billion by 2002. Advantages to
businesses include: 1) they move older models off shelves and off books, 2)
they obviate the need to transport goods to a live auction, 3) they let
equipment dealers buy and sell without having to move goods to their own
warehouses, 4) they let companies unload excess part anonymously, and 5)
they help companies that have closed or modernized plants to place uneeded
tools.

Title: Technology: Overbidding on Internet Stocks Has
Broad Consequences
Source: New York Times (C5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01tech-column...
Author: Jerry Colonna, Flatiron Partners
Issue: Internet Economics
Description: John Doerr is often quoted as saying that the Internet
represents the greatest legal creation of wealth in history. The rise of
Internet stocks seems to prove him right, but they are a tough yardstick for
companies to be measured by. Pre-Internet, a return of five times invested
capital was terrific. Now, some investors are seeing returns of 500 times
invested capital over three to five years. The problem is that the
fascination with everything Internet can overvalue stocks and when the
poorly planned ones fail expectations, they can bring down the value of all
Internet-related stocks. [See also ChiTrib, Sec 4, p.2 "A contrarian sees
collision on technology stock bandwagon" by Adam Lashinsky San Jose Mercury
News)]

Title: Creating a Silicon Valley in the Washington Area
Source: New York Times (C5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01washington....
Author: Tom Watson
Issue: InfoTech
Description: You've heard of Silicon Valley, Silicon Alley in NYC, and maybe
even Silicon Toast...errr Silicon Coast in LA. But there's also a large
number of digital-related start-ups in the Washington, DC area from
Baltimore to Northern Virginia. There's also Mario Morino who started a
software company, grew it and walked away with $80 million when he sold it
to Computer Associates. Mr. Marino used the money to start the Marino
Institute, which finances programs in youth advocacy and services,
entrepreneurship, social networking, and community services. The Institute
founded the Potomac Knowledgeway Project which is promoting
"knowledge-based" business in the region. Last year, the Netpreneur program
www.netpreeur.org was started; its aim is to build the wired business
community by getting digital entrepreneurs together, online and off.

** Internet **

Title: Los Angeles Libraries Experience Renaissance With Computer Use
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/31library-la.html
Author: Rebecca Fairly Raney
Issue: Internet Access/Libraries
Description: A recent study conducted by MCI LibraryLINK found that since
1996 the use of libraries for Internet use has grown by more than 500
percent. The study showed that 16 percent of study respondents accessed the
Internet from someplace other than school, work or home and that almost half
of the group gained access via their local library. Susan Kent, a librarian
in Los Angeles has worked in public libraries for 30 years and says: "I see
what's happening now as the best time ever for libraries." She also is aware
that due to Internet connection libraries are moving more into the public
spotlight as one way to close the gap between those who have computers and
those who do not. You can access MCI LibraryLINK's site
at:http://www.librarylink.com/

Title: In Brief
Source: Broadcasting&Cable (p57)
http://www.broadcastingcable.com/
Author: B&C Writers
Issue: Copyrights/Internet Regulation
Description: The House Telecommunications Subcommittee will hold a hearing
this Friday on a bill that would protect copyrighted material online. The
bill has already passed out of the House Judiciary Committee, but Rep. Tom
Bliley, chairman of the Commerce Committee, complained that the legislation
also falls under his jurisdiction. A subcommittee markup of the bill will
follow on June 17 and then will proceed to a full committee markup.
Proponents of the bill hope to get legislation passed this year.

Title: Netscape Uses Browser to Beef Up Web Business
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Kara Swisher
Issue: Corporate Revamping
Description: Netscape Communications Corp. is planning to unveil today a
"major revamping" of its Web site. Netscape's is upgrading its software to
include special buttons that "move users more quickly to features of its
Netcenter site, and allows them to configure the browser and service to work
more like an integrated computer desktop." Netscape also is planning to
announce plans to merge its browser division into the Web-site division.
"Our goal is to turn the 70 million users of our software into the world's
biggest media network," said Mike Homer, as executive vice president who
recently took over responsibility for Netcenter. "Being able to leverage our
browser, so that features of itlink into the Web site seamlessly, is a great
differentiation for us over our competitors."

** Technology **

Title: Intel Delays The Delivery of Key Chips
Source: Wall Street Journal (A3,A6)
http://wsj.com/
Author: Quentin Hardy
Issue: Technology
Description: Intel Corp. is delaying the delivery of its next-generation
microprocessor by more than six months. The move could disrupt plans of more
than a dozen computer and software companies "whose fortunes are tied to the
long-awaited chip." Intel had hoped to have the chip, code-named Merced,
available by the second-half of 1999. But due to underestimating the time it
would take to test the complex chip on a variety of computer systems, the
company doesn't expect delivery of large commercial quantities until
mid-2000. The Merced is the most significant chip to come out of Silicon
Valley since Intel's Pentium in 1993.

Title: Marshaling Microchips for a Better Dog Tag
Source: Washington Post (Bus.5,6
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/01/017l-060198-idx.html
Author: Sarah Schafer
Issue: Technology
Description: Hal Woodward and his four-person company, Data-Disk, have
designed a "digital dog tag" in response to the Army's request for a small,
resistant device that would contain a computer chip holding a soldier's
medical and personal information for quick access in the field. According to
the U.S. Army Center of Military History, dog tags have been standard issue
in the Army since 1906. Traditionally they have displayed a soldier's name,
social security number and blood type. By using the digitized tag, called
Medi-Tag, soldiers could carry around their entire medical histories. The
information would be accessed using a specialized scanning device that would
give doctors instant access to medical records. Commercial enterprises, such
as nursing homes, have also expressed interest in these types of devices.

** Privacy **

Title: Protecting Privacy
Source: Washington Post (A16)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/01/001l-060198-idx.html
Author: WPost Editorial Staff
Issue: Privacy
Description: The Justice Dept. sent a letter to Rep. Henry Hyde, chairman of
the House Judiciary Committee, on May 20 regarding the department's
opposition to the Clone Page Authorization Act, a bill the committee was
"poised to take up and had passed the Senate without measurable opposition."
Clone pagers are devices used by law enforcement to "mimic the numeric
beepers" carried by thousands of Americans. Agents use the devices to
intercept beeper messages sent to a target of surveillance. They are most
often used in pursuing drug dealers. Currently, authorities are required to
obtain a search warrant before using a clone pager. But the legislation
would lower that standard making it more identical to tracing a call. The
Justice Dept. wrote in its letter: "Because clone pagers intercept the
'contents' of a communication, we believe there is a substantial possibility
that...courts would hold their use to constitute a 'search' for Fourth
Amendment purposes. Accordingly, we believe the proposed bill's provisions
for authorizing the use of clone pagers would be subject to serious
constitutional challenge." The department also said: "We are unaware of any
law enforcement need for such authorization and believe that the proposal is
unwise as a policy matter." As result of the letter, Rep. Hyde removed the
bill from the committee's agenda at a recent markup.

** Newspapers **

Title: An On-Line Critic Tackles the Big Papers
Source: New York Times (C8)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01slate.html
Author: Lisa Napoli
Issue: Internet Content/Newspapers
Description: Scott Shuger is paid to read, rant about and to the nation's
major daily newspapers. "Today's Paper" is a service of Slate magazine,
owned by Microsoft. "One of the things he is supposed to do is educate
people about how to read the newspaper," said Slate's Editor, Michael
Kinsley. "It's always interesting that USA Today and The New York Times have
different views about what's going on in the world. One will lead with a
story on page one and the other will have it buried on D24. Both of those
judgments can't be right." Each night, Mr. Shuger reads the next day's front
pages and writes a report on what made the news, what didn't, placement and
missing details in articles. See
http://www.slate.com/code/todayspapers/todayspapers.asp, but you come back
to Headlines, y'hear?

Title: Some Newspapers Try No-News Front Page
Source: New York Times (C8)
http://www.nytimes.com/yr/mo/day/news/financial/no-news-frontpage.html
Author: Dylan Loeb McClain
Issue: Newspapers
Description: Back in 1996, a fierce internal debate started at the
Pittsburgh Post-Gazette when the paper's early Sunday edition was printed
with no front-page articles -- just teasers to features in the rest of the
paper. The result has been increased sales and imitators in Milwaukee,
Dallas and Fort Worth. "We looked at why people were buying that edition,
and it wasn't for breaking news," said Ralph Langer, editor of the Morning
News. The advantage of the format, he said, is that it allows the paper to
highlight "the articles you think have the most reader appeal."

** Minorities & Jobs **

Title: Lutheran Church-Missouri Synod v. FCC & United States
Source: FCC
http://www.fcc.gov/Bureaus/OGC/Briefs/1998/petn971116.html
Issue: Minorities/Jobs
Description: "The Lutheran Church--Missouri Synod [the Church], operates two
radio stations. For many positions at the stations, [the Church] recruited
and hired only seminarians or their spouses. This denomination's membership
is about two per cent African-American, and the NAACP challenged the
stations' license renewal applications on the ground that the stations'
practices had not complied with the FCC's requirements for minority
recruiting. The Commission initially concluded, pursuant to its
long-standing policy upheld by this Court in King's Garden, Inc. v. FCC, 498
F.2d 51 (D.C. Cir. 1974), that the Church had erred by giving preferential
treatment to seminarians and their spouses for positions that did not
directly affect the stations' programming, and this case ensued. However, in
a broad rule making proceeding that had been initiated in 1996 to streamline
the Commission's EEO rule, the Commission adopted an order while this case
was pending that changed its King's Garden policy: the Commission issued a
binding order (incorrectly termed a mere "policy statement" by the panel)
permitting radio stations owned by religious groups to favor members of
their religious group for all positions at the station. Having changed
position on the central issue presented by the case, the Commission
accordingly sought a remand." (See Chairman Kennard's statement
http://www.fcc.gov/Speeches/Kennard/Statements/stwek837.html)

** Radio Ownership **

Title: In Brief
Source: Broadcasting&Cable (p56)
http://www.broadcastingcable.com/
Author: B&C Writers
Issue: Radio/Ownership
Description: The Federal Communications Commission "signed off" last week on
CBS's acquisition of American Radio Systems Corp.'s 97 radio stations. "The
commission granted CBS waivers of its one-to-a-market rule in Boston,
Baltimore, Pittsburgh and San Francisco but required CBS to spin off
stations in Boston, Baltimore and San Francisco. An earlier settlement with
the Justice Dept. also required CBS to spin off a total of seven stations."

Title: Joint Statement: Radio Assignment and Transfer in Redding, CA
Source: FCC
http://www.fcc.gov/Speeches/Ness/States/stsn815.html
Author: Commissioners Ness & Tristani
Issue: Radio/Ownership
Description: "The application approved today by the Mass Media Bureau raises
the question of whether it is in the public interest to grant the assignment
and transfer of four additional radio stations in the Redding, California
area to Regent Communications. The assignment, in our view, should not have
been approved without a more rigorous examination of the facts.
Unfortunately, neither the Bureau nor the Commission has made such a review.
The Bureau's action, therefore, should not be viewed as having any
precedential weight. The Commission has an independent statutory obligation
under Section 310(d) to determine that each and every broadcasting license
assignment or transfer is in the public interest. This duty is complementary
to, and not subrogated to, the antitrust responsibilities of the Department
of Justice or the Federal Trade Commission."

** Advertising **

Title: TV Guide to Introduce Coverage of Advertising
Source: New York Times (C8)
http://www.nytimes.com/yr/mo/day/news/financial/media-talk.html
Author: Stuart Elliot
Issue: Advertising/Television
Description: So, you think some ads are better than the programming? Well,
now TV Guide has hired a consulting editor to write a column every other
week on advertising as well as special issues on TV advertising.
"Advertising has become one of the most entertaining and talked-about parts
of TV viewing," said Steven Reddicliffe, editor in chief of TV Guide.
(Entertainment Weekly has countered with a planned "Guide to Summer
Commercial Viewing" which should hit newsstands on Saturday)
*********