UNIVERSAL SERVICE
FCC Limits School Fund for Internet (ChiTrib)
TELEPHONE REGULATION
Eighth US Appeals Court Upholds FCC Access Charge Order (TelecomAM)
Internet Service Providers Victorious on Access Fees (NYT)
Justice Department Recommends Against BellSouth Long
Distance Bid (TelecomAM)
TELEVISION
HDTV: High Definition, High in Price (NYT)
Image Doctors Who Even Deliver News Reports (NYT)
RADIO
FCC Takes a Harder Look at 'Microradio' Stations (NYT)
MINORITY OWNERSHIP/ADVERTISING
FCC Probes Claims of Advertiser Bias (WP)
INTERNET CONTENT/CHILDREN
A Serious Defense of Free Speech by the Comic Book Industry (WP)
FREE SPEECH
Teaching Parents How To Protect Children Online (NYT)
SPECTRUM/AUCTIONS
FCC Sets Re-Auction of C-Block Licenses for March 23 (TelecomAM)
JOURNALISM
Columnist Barnicle Quits as New Allegations Surface (ChiTrib)
=================
UNIVERSAL SERVICE
=================
FCC LIMITS SCHOOL FUND FOR INTERNET
Issue: Universal Service
Suburban schools in the Chicago area may have to delay projects to wire
classrooms or find extra money in their budgets. Cuts in the Federal
Communications Commission's erate program mean that only the neediest
schools will receive discounted services. The Chicago public schools have a
good chance of receiving the nearly $23 million they have requested under
the program. About 83% of Chicago Public Schools students qualify for the
federal school lunch program. The FCC will focus funds for wiring projects
to schools with 50-100 percent students eligible for the lunch program.
[SOURCE: Chicago Tribune (Sec 2, p.1), AUTHOR: Mark LeBien]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808200241,00.html
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TELEPHONE REGULATION
====================
EIGHTH U.S. APPEALS COURT UPHOLDS FCC ACCESS CHARGE ORDER
Issue: Telephone Regulation
The Federal Communications Commission's batting average got a little bit
better yesterday when the 8th U.S. Appeals Court of St. Louis, ruled that
the Commission had acted "reasonably" in reforming the access charge
structure last year. The three-judge panel said in a unanimous decision that
its job wasn't to determine whether the FCC "made the best choice" but
rather "whether the FCC made a reasonable selection from among the available
alternatives." There were three main challenges to the FCC's order: 1)
BellSouth, Cincinnati Bell, SBC and U S West complained that the transition
from implicit to explicit subsidies occurred too fast and left them without
enough money to support universal service -- the LECs
contended that the FCC decision to continue capping the SLC creates another
implicit subsidy, and also questioned why the FCC exempted purchasers of
unbundled network elements (UNEs) from contributing to universal service
support through access charges; 2) Bell Atlantic and Ameritech, joined by
the BellSouth group, questioned the FCC's decision to exempt information
service providers (ISPs) from paying access charges; and 3) MCI, Cable &
Wireless and LCI complained that the FCC should have prescribed lower access
charges through regulatory
action rather than relying on a market-based approach. The court ruled that
1) the FCC was acting under the jurisdiction of the 1996 Telecom Act when
that it decided that "competitive pressures in the local exchange market
will not threaten universal service during the interim period" until the
permanent mechanism has been fully implemented;" 2) capping residential SLC
does not create an implicit subsidy; 3) exempting purchasers of UNEs from
paying interstate access charges doesn't violate the Telecom Act; 4) the FCC
has taken the position on the ISP exemption for 14 years and the Court
agrees with the agency that it's not clear that the ISPs use the network in
the same manner as long distance companies, which do pay access; and 5) the
Commission has the authority to choose a market-based approach to lowering
access fees if
it wants. The decision upholds the new structure that includes a flat-rated
presubscribed interexchange carrier charge (PICC) and an increased
subscriber line charge (SLC) for
nonprimary residential and multibusiness lines. [Read FCC Chairman Kennard's
response at http://www.fcc.gov/Speeches/Kennard/Statements/stwek864.html]
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/
see also:
APPEALS COURT UPHOLDS FCC PLANS ON TELEPHONE FEES
[SOURCE: Washington Post (E2), AUTHOR: Associated Press ]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/20/210l-082098-idx.html
U.S. APPEALS COURT UPHOLDS FCC RULES INTENDED TO LOWER LONG-DISTANCE RATES
[SOURCE: Wall Street Journal (B7), AUTHOR: John Simons]
http://wsj.com/
INTERNET SERVICE PROVIDERS VICTORIOUS ON ACCESS FEES
Issue: Regulation
Internet Service Providers won a huge victory yesterday when an appeals
court upheld an FCC decision to exempt the providers from paying local phone
companies the access fees that the local companies charge long-distance
carriers. The ruling was a blow to the Baby Bells and other local phone
companies, which had argued that the Internet Service Providers use the same
local phone lines as long-distance carriers to connect consumers to global
networks and should thus be subject to the same fees. The local companies
also argued that on a per-customer basis, Internet users drain local phone
networks more than long-distance users, because Internet connections usually
last for hours as opposed to minutes. In another set-back for local phone
companies, the court also upheld FCC regulations established to reduce the
$23 billion in access fees paid by long-distance carriers to $1.7 billion.
The commission estimated that the savings passed on to the average
long-distance customer would be about $2 a month. [Wow, curiously close to
the amount needed to fund universal service programs like the erate]
[SOURCE: New York Times (D2), AUTHOR: Andrew Ross Sorkin]
http://www.nytimes.com/library/tech/98/08/biztech/articles/20phone.html
JUSTICE DEPARTMENT RECOMMENDS AGAINST BELLSOUTH LONG DISTANCE BID
Issue: Long Distance
The Department of Justice has recommended that the FCC deny BellSouth's bid
to offer long distance service to Louisiana customers. The company contended
that the growing use of PCS service by residential consumers in Louisiana
offered enough competition to satisfy the 1996 Telecom Act's checklist
requirements. "Many of the problems that we identified in [BellSouth's first
petition] still have not been resolved," said DoJ Antritrust Chief Joel
Klein. He said BellSouth is making progress but "much remains to be done to
ensure that Louisiana local markets are open to competition as required by
the Telecommunications Act." Bell South responded by saying it is clear that
the DoJ "is not supporting the intent of
Congress, federal courts or even the Administration's goal of lowering
prices, spurring competition and giving American consumers more choices."
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/
==========
TELEVISION
==========
HDTV: HIGH IN DEFINITION, HIGH IN PRICE
Issue: Digital TV
Last year, when manufacturers were lobbying the FCC to pass rules on
digital-television, several major companies said the sets would cost $1,000
to $1,500 more than the conventional high-end projection sets. They
estimated that the most expensive ones would cost $4,000 to $5,000. Now for
the sticker shock -- the least expensive ones now on the market will cost
$8,000! Manufacturers explain the price jump, saying that some on the
components used to build these sets cost more than they had originally
expected. But in addition to the cost of the HDTV set, in order to receive
high-definition programming, owners of these monitors will also have to buy
at digital tuner box -- costing about $1,700! With prices like these,
television stations that are spending millions to make the transition to
digital broadcasting, starting Nov. 1, are saying that the money is being
wasted because no one will be able to afford such expensive sets. The
Federal Government is eager to speed the transition to digital television
because once the transition is complete and almost everyone has a digital TV
set, the old channels will be taken back and auctioned for other uses. The
proceeds from those auctions, currently estimated at $6 billion, are already
being calculated into Federal budget projections. But many believe that the
general public will not embrace HDTV monitors until prices fall by 90
percent or more. Mark Know, a senior manager for Samsung Electronics
Company, estimates that an HDTV will probably sell for $3,000 by 2002.
That's certainly better than $8,000, but according to Todd Thibodeaux, a
senior economist with the Consumer Electronics Manufacturers Assoc., most
consumer electronics products only reach true mass acceptance after the
price falls below $500. [...hmmmm, TV set or car, TV set or house, TV set or
schooling, TV set or...]
Mr. Brinkley appeared this morning on C-SPAN's Washington Journal. For those
of you with cable TV, tomorrow's Washington Journal show (from 7:30-10am ET)
will focus on digital television. Guests will be:
Steve Effros, President/ Cable Telecommunications Assn.
Gary Shapiro, President/Consumer Electronics Manufactureres Assn.
Paul Misener, Chief of Staff to FCC Commissioner Harold
Furtchtgott-Roth
[SOURCE: New York Times (E1,E8), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/98/08/circuits/articles/20hdtv.html
IMAGE DOCTORS WHO EVEN DELIVER NEWS REPORTS
Issue: Public Broadcasting
In recent years, public broadcasters' have begun carrying ever more
expansive commercials, which go directly against the rational for what used
to be known ("in more wishful times") as noncommercial television. Granted,
public broadcasting, being continually faced with a lack of funding, needs
the money. But is that any reason for nonprofit broadcasting to sound more
and more like for-profit broadcasting? As originally conceived, it was hoped
that public broadcasting would supply programs that would otherwise not make
it in the marketplace, and it would respect its audience by eliminating the
"hokum" of advertising -- instead being a commercial-free, hypocrisy-free
zone. Unfortunately, there is currently no observable surge of resistance to
this filtering in of commercials. While at present PBS programs are not
constantly interrupted by "messages," the direction appears to be dire and
commercialization seems to be a bow to reality. The nation doesn't want a
purer form of television enough to pay for it, and thus the merger of PBS
ideals with business interest seems to be inevitable. "The question is
whether PBS programmers can remain uninfluenced by corporate largess in
their choice of subjects to play up and those to avoid."
[SOURCE: New York Times -- 8/19/98 -- (B2), AUTHOR: Walter Goodman]
http://www.nytimes.com/
=====
RADIO
=====
FCC TAKES A HARDER LOOK AT 'MICRORADIO' STATIONS
Issue:
In the past year, the FCC has closed down more than 250 unlicensed radio
stations. Many of the operators have closed their stations voluntarily but
feel that it is an infringement upon their rights to free speech. But while
the FCC may be aggressively pursuing and shutting down microradio stations,
it also is considering licensing radio stations that broadcast below 100
watts of power, compared with 50,000 watts for major stations. Since the
enactment if the Telecommunications Act of 1996, the radio industry has been
on a consolidation trend, leaving control of most stations in the hands of
powerful media companies. FCC Chairman, William Kennard, has said he is
deeply troubled by this trend. "With consolidation, radio has become the
province of multibillion-dollar corporations," Kennard said. "The loss of
small religious stations and local programming is very unfortunate."
[SOURCE: New York Times (E7), AUTHOR: Matt Richtel]
http://www.nytimes.com/library/tech/98/08/circuits/articles/20pira.html
==============================
MINORITY OWNERSHIP/ADVERTISING
==============================
FCC PROBES CLAIMS OF ADVERTISER BIAS
Issue: Minority Ownership/Advertising
Officials from the Federal Communications Commission (FCC) have announced
that they will begin investigating allegations that advertisers
discriminated against radio and TV stations that are either owned by or
attract substantial minority audiences. For many years, minority
broadcasters have charged advertisers with paying less for airtime on
minority stations or avoiding them altogether. "Advertisers simply don't
place the same value on black consumers as on white consumers," says Robert
Holding, chief executive of BET Holdings INC. In response to the
long-standing concern over differential treatment, the FCC will launch an
inquiry into factors that influence advertising buying decisions.
[SOURCE: Washington Post (E1), AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/20/192l-082098-idx.html
===========
FREE SPEECH
===========
A SERIOUS DEFENSE OF FREE SPEECH BY COMIC BOOK INDUSTRY
Issue: Free Speech
In the next few weeks a book called "Free Speeches," published by Oni Press
in conjunction with the Comic Book Defense League (CBDL), should be
available in bookstores across the country. The book is comprised of
speeches and illustrations that advocate free speech and criticize
censorship. Comic books have often been the targets of obscenity charges
because of the long-standing perception that comics are a medium aimed
solely at children. The CBDL was created to help defend the rights of comic
book creators and sellers against such legal attacks. It is their belief
that comics should be protected by the same constitutional rights as
literature, film, or any other art. For more information about "Free
Speeches" or the CBDL, you can check out its web site at http://www.cbdf.org.
[SOURCE: Washington Post (B4), AUTHOR: Bill Radford (from The Gazette)]
http://www.washingtonpost.com/
=========================
INTERNET CONTENT/CHILDREN
=========================
TEACHING PARENTS HOW TO PROTECT CHILDREN ONLINE
Issue: Children
In a Seattle classroom, vice detective Leanne Shirey is teaching parents how
to protect their children from online predators. She warns parents of how
easy it is for children to find trouble on the Internet, even when they are
not looking for it. "They can decide, ooops, I'm in the wrong place, if they
want to learn about the White House and end up in a porn site," notes Terri
Dowling, parent of a 14-year old Internet user. Detective Shirey suggests
that Internet safety classes like hers are "something every police
department could offer within two years for free."
[SOURCE: New York Times (E3), AUTHOR: Tina Kelley]
http://www.nytimes.com/library/tech/98/08/circuits/articles/20ugee.html
================
SPECTRUM/AUCTIONS
================
FCC SETS RE-AUCTION OF C-BLOCK LICENSES FOR MARCH 23
Issue: Spectrum/Auctions
The FCC set March 23 for the re-auction of C-block licenses surrendered
under the debt relief rules adopted last fall or held by the agency pending
the new sale while FCC Chairman William Kennard again asked Congress to
adopt legislation "to clarify that licenses to use the public
airwaves are not private property that can be tied up in bankruptcy
litigation." At least three large C-block bidders are in bankruptcy
proceedings -- General Wireless, NextWave Telecom, Pocket Communications.
Businesses with less than $40 million in gross revenues will get a 15
percent bidding credit, and bidders with less than $15 million in revenue
will have a 25 percent credit, the agency said, following a similar format
used in the F-block auction. [See the FCC's news release
http://www.fcc.gov/Bureaus/Wireless/News_Releases/1998/nrwl8036.html and
Chairman Kennard's statement
http://www.fcc.gov/Speeches/Kennard/Statements/stwek863.html]
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/
==========
JOURNALISM
==========
COLUMNIST BARNICLE QUITS AS NEW ALLEGATIONS SURFACE
Issue: Journalism
A week after avoiding an attempt to fire him, Boston Globe columnist Mike
Barnicle has resigned amid allegations that he fabricated a 1995 story.
There are also reports that the Boston Phoenix, an alternative weekly, will
publish a story Thursday accusing Barnicle of plagiarizing a 1961 book for a
1986 column. Announcement of Barnicle's resignation was met with cheers in
the Boston Globe news office.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Sallie Gaines]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808200370,00.html
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