Communications-related Headlines for 7/22/97

Crusading TV Station Is the City's Daytime Drama

Time Warner's New York Blackout

Microsoft Takes a Stake in Progressive Networks

Microsoft Is Gaining Ally for Developing Internet Technology

News Corp. in Talks With Time Warner To Place Fox News on New York Cable

Internet Use Is Restricted In Loudoun

8th Circuit Court Ruling Blow For U.S. Long-distance Carriers

8th Circuit Court's Ruling Goes way Beyond Severing FCC's Pricing Rules

Senator McCain Plans to take a Second Look at Telecom Act

U.S. Telecom Reform Moves At Snail's Pace

Senate Approves Klein's Nomination to Head DOJ Antitrust Division

Bell Atlantic, Nynex Concede To FCC Requests In Exchange For Merger OK

Companies Should Self-Regulate Internet Business, Says MCI

Budget process unsettled for broadcasters

Taking a Reed on a Wallman FCC

"Clean money" alternatives offered

All ratings roads lead to the FCC

America's Town Crier

Statements on Court's Decision on Telephone Interconnection

DISCO II [NOT a BeeGees Story]
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Title: Crusading TV Station Is the City's Daytime Drama
Source: New York Times http://www.nytimes.com/(A4)
Author: Calvin Sims
Issue: International/TV
Description: After airing investigative reports of misuse of power within
the Peruvian government, Frecuencia Latina TV is preparing to be raided by
the military. Already, the station's owner, Baruch Ivcher, has been stripped
of his citizenship.

Title: Time Warner's New York Blackout
Source: New York Times http://www.nytimes.com/(A22)
Author: NYTimes Editorial Staff
Issue: Ownership/Media Mergers
Description: Time Warner's decision not to carry the Fox News Cable station
means that New Yorkers aren't seeing live coverage of the Senate hearings on
campaign finance abuses. Due to bad ratings, CNN and MSNBC are not showing
the hearings. C-SPAN is showing the hearings on tape delay. "If Time Warner
wants to be respected as a company grounded in journalism, it cannot leave
the nation's largest television audience in the dark on a matter as critical
as the Senate hearings." [The editorial does not mention that the only way
for *all* New Yorkers to see the hearings is to air them on a free,
broadcast station.]

Title: Microsoft Takes a Stake in Progressive Networks
Source: New York Times http://www.nytimes.com/(D6)
Author: John Markoff
Issue: Mergers
Description: In hopes of developing a future digital television technical
standard more compatible with computers, Microsoft has made a minority
investment in Progressive Networks -- developer of Real Audio and Real
Video. Progressive Networks was created by ex-Microsoft employee Rob Glaser.

Title: Microsoft Is Gaining Ally for Developing Internet Technology
Source: Wall Street Journal http://www.wsj.com/ (B5)
Author: WSJ Staff Writer
Issue: Mergers
Description: Microsoft will acquire a 10% nonvoting stake in Progressive
Networks. Competition had been heating up between the two companies with
Microsoft's development of audio and video Net tools under the name NetShow.

Title: News Corp. in Talks With Time Warner To Place Fox News on New York
Cable
Source: Wall Street Journal http://www.wsj.com/(B6)
Author: Eben Shapiro & Mark Robichaux
Issue: Ownership/Mergers
Description: In a three-way deal to solve the Fox News/Time Warner cable
fiasco, the City of New York will get Rupert Murdoch as mayor, Ted Turner
will head News Corp and Rudolph Giuliani will become a Time Warner Vice
Chairman. Each man had worn out his welcome at his organization. **Or** Fox
News will get a slot on Time Warner freed up by the City which will give
away one of its public access stations. News Corp. will drop an a federal
antitrust suit against Time Warner and Time Warner will drop another suit
against the City. All will be happy -- until Greg Maddux realizes he's
pitching for someone with a Yankee cap on.

Title: Internet Use Is Restricted In Loudoun
Source: Washington Post http://www.washingtonpost.com/ (E1)
Author: Peter Pae and Todd Beamon
Issue: Libraries/First Amendment
Description: Last night, the Loudon County (VA) Library Board voted 6-2
in favor of blocking full Internet access by their patrons. The adopted
policy states that adult patrons must ask librarians to turn off
filtering software if they would like full access, and that children
under 17 yrs. old must have a parent with them if they want full access
to the Web. Many praised the decision as a "common sense" way to
protect children, while others, including the Library Director, decried
the filtering policy saying that parents "should have the right to
decide what is appropriate for their children." According to Judith
Krug, Director of the American Library Association (http://www.ala.org), the
move is "unusual in that the majority of libraries are backing off" from
using content filters. The ALA advocates parental restriction of their
children's access over the use of screening software.

Title: 8th Circuit Court Ruling Blow For U.S. Long-distance Carriers
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Competition
Description: The 8th U.S. Circuit Court of Appeals in St. Louis made a
ruling last week which declared that the FCC had stepped into the
jurisdiction of state regulators in trying to influence the prices
charged by local phone companies for access to their networks by
potential competitors. FCC Chairman Reed Hunt said that "This is a huge
setback for competition [and] a tremendous shot in the arm for the
forces of incumbency and the status quo. But there is an antidote for
monopolies: the Supreme Court." Which is to say, the FCC will appeal
the ruling.

Title: 8th Circuit Court's Ruling Goes way Beyond Severing FCC's Pricing Rules
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Competition
Description: The 8th Circuit's ruling struck down the Federal Communications
Commission's jurisdiction over pricing of interstate charges and the "pick
and choose" provision which would have allowed potential competitors to pick
the parts of previous interconnection agreements with being responsible for
the negative terms of those agreements. The Court also said that the FCC
can't set rules for state commissions on rural exemptions, can't review
agreements approved by state commissions, nor preempt state policies that
conflict with FCC regulation. In summing up his opinion, Judge David Hansen
wrote, "While we do not pretend to possess the Rosetta stone that reveals
the true meaning of every portion of this Act, we hope that our review of
the FCC's First Report and Order in light of the Act's provisions offers
some guidance to the participants in the telecommunications industry as they
continue its evolution into the competitive marketplace Congress intended."

Title: Senator McCain Plans to take a Second Look at Telecom Act
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Telecommunications Act of 1996
Description: In a statement on the 8th U.S. Circuit of Appeals' July 21
ruling, Sen John McCain (R-AZ) said "I am very concerned that this serious
setback to the FCC's regulatory plan may mean that the Telecom Act will now
be even more ineffective in bringing about increased competition than it has
already shown itself to be." Sen McCain plans to hold hearings in September
to investigate how the Telecom Act can promote competition in light of the
ruling.

Title: U.S. Telecom Reform Moves At Snail's Pace
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Competition
Description: There's good news and bad news for advocates of open
competition in the telecommunications market. The good news is that the
FCC will allow Bell Atlantic to merge with Nynex because they agreed to
concessions that will force the companies to stimulate competition in
the market. As a result, their customers may eventually see telephone
rates drop. The bad news is, if you don't live on the East Coast
between New England and North Carolina, you don't have much to look
forward to after the Appeals Court decision to strike
down the FCC's ability to set pricing rules for interconnection charges on local
networks. For long-distance carriers to enter the local market they
will now have to battle for fair rates in each state they wish to
provide service in, or will have to make an incredible investment and
build their own network. The FCC has set up a task force to look into
the impediments to competition, but it seems like progress towards
competition will be made slowly, if it comes at all.

Title: Senate Approves Klein's Nomination to Head DOJ Antitrust Division
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Telephone Regulation
Description: Thursday, the Senate approved the nomination of Joel Klein
as head of the Department of Justice's Antitrust division. Senate
Democrats tried to keep Klein from the position because they questioned
his "ability to rule objectively on applications from telecommunications
companies to merge or enter interLATA long-distance." Attorney General
Janet Reno was pleased with the approval of Klein, calling him a
"champion" of American consumer and business interests.

Title: Bell Atlantic, Nynex Concede To FCC Requests In Exchange For
Merger OK
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Telecom Mergers
Description: According to FCC Chairman Reed Hundt, concessions made by
Bell Atlantic and Nynex under the condition that the FCC accept their
merger, "would bring enforceable, pro-competitive, market opening terms
to the whole Bell Atlantic/Nynex region in a way that offsets the loss
of Bell Atlantic as a potential competitor to Nynex." If Bell Atlantic
fails to meet all of the merger conditions, they will be fined by the
FCC, and could be slapped with additional penalties.

Title: Companies Should Self-Regulate Internet Business, Says MCI
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Internet Regulation
Description: MCI released a statement yesterday suggesting that Internet
service providers regulate themselves in order to keep the government
out of the Internet regulation business. The paper suggested that
allowing government regulation of the Internet would risk "distorting
healthy market forces," not to mention the fact that it would be a next
to impossible task for the government to regulate all Internet content.

Title: Budget process unsettled for broadcasters
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.10)
Author: Paige Albiniak
Issue: Spectrum/Budget Issues
Description: Broadcast lobbyists are concerned that gains they've made will
be lost when the Budget Committee conference meets next week. Current budget
language calls for the return of spectrum when 95% of households in a market
area "have access" to digital signals. Federal Communications Chairman Reed
Hundt wants that language to be clearer -- and make sure "access" means "the
burden is on the broadcasters to transmit the digital signal, not on the
consumer to receive it." Chairman Hundt points out that the 95% penetration
rate is unrealistic because "telephones have been available for 120 years,
and yet 6% of the population still does not have telephone."

Title: Taking a Reed on a Wallman FCC
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.14)
Author: Chris McConnell
Issue: FCC
Description: "Reed Hundt's policies minus Reed Hundt's arrogance." That's
what Washington lawyers, lobbyists, and regulators expect from a FCC headed
by Kathleen Wallman, White House economic adviser. "What you get is Gore,"
said one lobbyist. Wallman is Gore's first choice to succeed Hundt, but
Senate Democrats insist they will not back her nomination.

Title: "Clean money" alternatives offered
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.18)
Author: Paige Albiniak
Issue: Free Time for Candidates
Description: In a campaign fiance reform bill introduced by Rep John Tierney
(D-MA), candidates who ran "clean money" campaigns would receive 30 minutes
of free prime time broadcast during primary elections and 75 minutes during
the general election. Maine and Vermont already have similar laws.

Title: All ratings roads lead to the FCC
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.22)
Author: Chris McConnell
Issue: V-Chip
Description: Federal Communications Chairman Reed Hundt says the Commission
must still decide if the original and revised TV ratings systems are
"acceptable" as mandated by the Telecommunications Act of 1996. The FCC will
review the two systems as Hundt wants NBC to resubmit the system it will be
using.

Title: America's Town Crier
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.70)
Issue: Cable Content
Description: A cover story interview with C-SPAN's founder, Brian Lamb.
C-SPAN is now 18 years old and continues its mission to let "the American
people see the political system as it is, without comment or analysis."

At the FCC http://www.fcc.gov
Statements by Chairman Hundt, Commissioners Quello, Ness and Chong in
reaction to the 8th Circuit Court of Appeals Decision on Telephone
Interconnection

DISCO II Amendment of The Commission's Regulatory Policies to Allow
Non-U.S.-Licensed Space Stations to Provide Domestic and International
Satellite Service in the United States. Dkt No.: IB- 96-111, CC-93-23. (FCC
No. 97-252)
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