Universal Service
Plan to Wire Schools is Under Fire (CyberTimes)
Administration of Federal Universal Service Support (FCC)
SLC Will Make GAO-Recommended Changes in E-Rate Program
(TelecomAM)
Letter from Chairman Kennard to the Schools
and Libraries Corporation (FCC)
Internet
The F.C.C. May Act to Aid Home Internet Access (NYT)
Man Collects $200 From Unwanted Spam (CyberTimes)
Telephony
FTC Suit Accuses 4 Companies Of 'Cramming' Phone Customers (WP)
Calls for Help on Cell Phones' Iffy Access to 911 (WP)
Television
GE's NBC Unit is Seeking to Expand In Cable as Broadcast
Economics Soften (WSJ)
Privacy
FBI Seeks Access to Mobile Phone Locations (NYT)
U.S. Data Code Is Unscrambled In 56 Hours (NYT)
Is Software Like a Can Opener or a Recipe (CyberTimes)
Philanthropy
New Money and Museums (WP)
** Universal Service **
Title: Plan to Wire Schools is Under Fire
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/17erate.html
Author: Jeri Clausing
Issue: E-rate
Description: Schools and libraries will not receive federally subsidized
Internet hookups until at least this fall because the subsidy program still
lacks crucial safeguards to ensure money goes only to eligible applicants,
Ira Fishman, CEO of the Schools and Libraries Corp., told Congress on Thursday.
Mr. Fishman said the corporation is working to address the problems raised
by a review
released yesterday by the General Accounting Office (GAO). The report by the
GAO, Congress's investigative arm, was requested by Senator John McCain
(R-AZ), Chairman of the Commerce Committee, who has been a vocal critic
about the subsidy program, also called the e-rate. The report said that the
corporation has taken longer than expected to process the 30,000
applications it received from schools and libraries around the country and
it lacks adequate compliance checks and internal controls. "As we debate
this issue, it is very important to keep several things in mind. First the
e-rate program is fundamentally strong and sound," said Senator Jay
Rockefeller (D-WV). "While concerns have been aired, not one issue has been
raised that has not or cannot be fixed."
Title: Administration of Federal Universal Service Support
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da981336.pdf
Issue: Universal Service
Description: "In connection with supplemental appropriations legislation
enacted on May 1, 1998, Congress requested that the Commission propose a
single entity to administer the support mechanisms for schools and libraries
and rural health care providers. In its Report to Congress, the Commission
proposed to merge the Schools and Libraries Corporation (SLC) and the Rural
Health Care Corporation (RHCC) into the Universal Service Administrative
Company (USAC) as the single entity responsible for administering the
universal service support mechanisms for schools, libraries and rural health
care providers by January 1, 1999. The Commission indicated that USAC, SLC,
and RHCC would be required jointly to prepare and submit a plan of
reorganization, for approval by the Commission. On July 1, 1998, SLC, RHCC
and USAC filed a Report and Proposed Plan of Reorganization (Plan) for
revising the administrative structure of the federal universal service
support mechanisms. RHCC filed a Separate Statement of the Rural Health
Care Corporation and Request for Three Changes in the Plan (RHCC Statement),
proposing certain modifications to the Plan. An executive summary of the
Plan is attached hereto. In this Public Notice, we seek comment from
interested parties on issues raised by the Plan and the RHCC Statement. We
also seek comment on other issues regarding the administration of the
federal universal service support mechanisms, including processes for
Commission review of actions by USAC, RHCC and SLC, divestiture of USAC from
the National Exchange Carrier Association (NECA), and compensation
limitations." Comments due August 5, 1998. Download the Notice at
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da981336.wp.
Title: SLC Will Make GAO-Recommended Changes in E-Rate Program
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: At a Senate Commerce Committee meeting, the General Accounting
Office (GAO) made recommendation about how the Schools and Libraries Corp
(SLC) should improve the process for approving applications: 1) the SLC
should not send "funding commitment letters" before finishing a two-part
fraud-and-waste-control program that includes development of internal
controls and completion of a report by an outside auditor reviewing them'
and 2) the SLC should review a random sample of applications to determine
whether program integrity systems are working well enough to detect
ineligible applications. SLC CEO Ira Fishman told the Committee that FCC
Chairman Bill Kennard had already ordered the SLC to adopt the GAO
recommendations [see letter below]. The program will begin funding discounts
for schools and libraries this fall.
Title: Letter from Chairman Kennard to the Schools and Libraries Corporation
Source: FCC
http://www.fcc.gov/Speeches/Kennard/Statements/stwek855.html
Issue: Universal Service
Description: Letter from Chairman Kennard to the Schools and Libraries
Corporation requesting that they complete certain actions before they issue
any funding commitment letters to applicants for the schools and libraries
universal service support mechanism.
** Internet **
Title: The F.C.C. May Act to Aid Home Internet Access
Source: New York Times (C1,C3)
http://www.nytimes.com/yr/mo/day/news/financial/fcc-bells.html
Author: Seth Schiesel
Issue: Broadband
Description: The Federal Communications Committee is preparing to recommend
as early as today that the big local telephone companies be allowed to build
data systems without having to resell their use to competitors, officials
said Thursday. If the plan is adopted, it would represent the FCC's biggest
move in favor of the local Bell companies since the telecommunications laws
were overhauled in 1996. The plan, supported by FCC Chairman William
Kennard, is sure to draw opposition from the nation's large long distance
carriers and new local phone companies. Although the Commission could issue
a proposal next month, the battle over the plan is likely to "spill over"
into next year before any final rules are adopted. "Our goal is to turn what
is today a trickle into a gushing pipeline of entertainment and information
into the home," Chairman Kennard said in an interview yesterday. Referring
to the
copper telephone wires that reach into almost every home across the U.S.,
Chairman Kennard added: "The incumbents, they have the copper infrastructure. It
would be a shame not to create incentives for them to use it for broadband
services."
Title: Man Collects $200 From Unwanted Spam
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/17spam.html
Author: Matt Richtel
Issue: Email
Description: Bruce Miller of Seattle collected $200 this week from a bulk
emailer under Washington State's month-old anti-spam law. Mr. Miller, a
freelance writer and consultant, may be the first consumer to
ever benefit from any state or federal anti-spam legislation. The payment
comes as legislators in states around the U.S. and Congress are considering
laws to restrict the use of unsolicited commercial email, and in some cases
penalize the senders. To date, Washington and Nevada are the only two states
that have adopted laws that specifically address spam.
** Telephony **
Title: FTC Suit Accuses 4 Companies Of 'Cramming' Phone Customers
Source: Washington Post (F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/17/076l-071798-idx.html
Author: David Segal
Issue: Telephony
Description: Thursday July 16, the Federal Trade Commission announced that
it was filling a suit against companies that have reportedly engaged in the
practice of 'cramming' unauthorized charges onto consumers' monthly phone
bills. Teresa M. Schwartz of the FTC's Bureau of Consumer protection said,
"The problem of cramming represents the latest in a growing array of
scams that exploit new telephone technologies and the deregulated telephone
billing system." She adds that "Consumers need to be especially wary of
charges from companies they've never heard of, and if uncertain, they can
call the local phone company." [Relax, let your local telephone monopoly
take care of you]
Title: Calls for Help on Cell Phones' Iffy Access to 911
Source: Washington Post (F1,F2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/17/094l-071798-idx.h...
Author: Cindy Skrzycki
Issue: Wireless
Description: The possibility that some cellular phone users won't be able to
reach 911 in a case of emergency has come to the attention of the FCC. The
inability to complete a call is a result of holes that exist in cellular
carrier's service area. Because of this risk, the FCC is considering to mandate
"strongest-signal" technology which would allow phones to seek the
strongest signal in an area to complete a call. Industry groups oppose this
proposals because it would allow calls to be completed on competitors
signals if they are stronger. Another concern is that a "strongest-signal"
mandate could interfered with the implementing of locator technology that
enables emergency dispatchers to locate callers. According to a group
filling with the FCC, "We can't help them if we can't find them".
** Television **
Title: GE's NBC Unit is Seeking to Expand In Cable as Broadcast Economics
Soften
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Kyle Pope
Issue: Television
Description: General Electric Co.'s NBC is increasing its efforts to expand
its cable holdings "as the economics of the broadcast-television business
continue to sour," according to people at the network. Though no deals are
ready to take place, people close to the network said that NBC's search for
a cable network has recently intensified. "We've made no secret of the fact
that we are covetous of some kind of entertainment channel," said a senior
NBC official. "NBC is looking to do things differently, to cut a new path."
** Privacy **
Title: FBI Seeks Access to Mobile Phone Locations
Source: New York Times (A10)
http://www.nytimes.com/library/tech/98/07/biztech/articles/17tap.html
Author: John Markoff
Issue: Privacy
Description: Last week, FBI Director Louis J. Freeh asked members of the
Senate Appropriations Committee to append to the Justice Dept.
appropriations bill language that would require telephone companies to
provide police agencies with the exact location of cellular phone users,
sometimes without a court order. After learning of Director Freeh's meeting with
Committee members, the telecommunications industry and civil liberties
groups began "marshaling" opposition. "Privacy advocates say the proposal is
a dangerous and unconstitutional invasion of privacy, and the
telecommunications industry predicts that implementing such a law would cost
billions of dollars," Markoff reports. Attorney General Janet Reno will meet
with FCC
Chairman William Kennard today to make the FBI's case that such legislation
is needed in order for the agency to stay current with an evolving
technology that enables criminals to used mobile phones to avoid detection.
Title: U.S. Data Code Is Unscrambled In 56 Hours
Source: New York Times (C1,C3)
http://www.nytimes.com/library/tech/98/07/biztech/articles/17encrypt.html
Author: John Markoff
Issue: Encryption
Description: Researchers using a homemade supercomputer cracked the U.S.
government's standard data-scrambling code in record time during a contest
sponsored by RSA Data Security Inc., a Silicon Valley computer-security
software company. The breakthrough is being hailed by critics of the U.S.
export policy for encryption technology as proof that a "well-heeled" group
of terrorists or other criminals could easily break the code used by
corporate and financial institutions as well as government agencies. The
U.S. government has long sought to keep data-scrambling technology out of
criminal hands by setting limits on the strength of such software that can
be exported. But critics argue that not only is more powerful
data-scrambling software already available from foreign companies, but the
government's approved version is too weak to really protect legitimate
business users. "This is more evidence that the government's crypto policy
has been overtaken by technology," said Marc Rotenberg, director of the
Electronic Privacy Information Center, a privacy-rights group in Washington.
"It's about time to end the limits on strong encryption techniques."
Title: Is Software Like a Can Opener or a Recipe
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/cyberlaw/17law.html
Author: Carl S. Kaplan
Issue: Encryption
Description: On July 2 the U.S. District Court for the
Northern District of Ohio ruled that encryption software is essentially a
gadget and not protected under the First Amendment. While recipes are
considered speech and are protected by the First Amendment, gadgets are not.
Attorneys for Peter D. Junger, a law professor who challenged the
government's restriction of dissemination of his encryption software,
argued that the computer programs where a kind of language, and all language
receives First Amendment protection. Judge James S. Gwin disagreed with this
assertion in concluding that the software was "inherently functional" and
not "expressive," and is therefore undeserving of First Amendment protection.
** Philanthropy **
Title: New Money and Museums
Source: Washington Post (Editorial, A 20)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/17/044l-071798-idx.h...
Author: Washington Post Editorial Staff
Issue: Philanthropy
Description: Designer Ralph Lauren's $13 million donation to the Smithsonian
for the restoration of an 184-year-old American flag is indicative of the
growing trend in corporate and private philanthropy. A survey released by
the Chronicle of Philanthropy this week found that corporate giving has
risen over 20 percent in the last three years. This new private giving,
which has resulted in "logo-plastered exhibits", comes on the heels of large
cutbacks in government spending for the arts and humanities. While private
money has become essential for many institutions, the authors wonder if
"the new public-private-corporate balance (will) come out to something
approximating the overall need".
*********
...and we are outta here. Have a great weekend; we'll be back Monday.