Communications-related Headlines for 8/24/98

EDUCATION TECHNOLOGY
Schools get hooked on technology (ChiTrib)
Voice of Experience Dissents (ChiTrib)

TELECOMMUNICATIONS REGULATION
Court Rules City Has Right to Charge Franchise
Fees to Competitors (TelecomAM)
Bliley Expresses Concern About Reported $5 Billion of
Missing LEC Equipment (TelecomAM)

TELEVISION
Gore Commission Seeks New Delay (B&C)
FCC Wants HDTV Glitch Solved Soon (NYT)
After Drought, Networks Put More Women in Top Posts (NYT)

OWNERSHIP
FCC Flags Radio Deals for Further Analysis (B&C)
Cable Asks FCC to Raise Cap (B&C)

INTERNET
Marketers Ponder How to sell Soap Without the Operas (NYT)

SECURITY/ENCRYPTION
IBM Discovers Web-Hacking Preventative (WSJ)
2 Researchers Believe They Can Block Hackers (ChiTrib)

INTERNATIONAL
China Plans For a 'Smart Card' System Using Technology
From Schlumberger (WSJ)

JOURNALISM
Surfing the Web for News in a Blockbuster News Week (NYT)
Press Liability (ChiTrib)

LABOR
Phone Workers In Connecticut Start Strike (NYT)
Phone Workers Strike in Conn. (WP)

====================
EDUCATION TECHNOLOGY
====================

SCHOOLS GET HOOKED ON TECHNOLOGY
Issue: Ed Tech
Thirty schools in the Chicago area have been touted as "high-tech schools."
But, Poe reports, researchers say filling a school with the latest equipment
is only the first step in bringing kids into the a new era of education. The
technology must be used to help children learn which means an emphasis on
teacher training. "It seems there has been lots of emphasis on what schools
have bought lots of technology," said Andres Henriquez, a senior research
associate at the Center for Children in Technology in New York. "But what is
thought of least often is how that infrastructure is going to be integrated
with the school curriculum and how teachers will be trained." [For more on
technology in the classroom, see The Learning Connection
http://www.benton.org/Library/Schools/]
[SOURCE: Chicago Tribune (Sec 4, p.6), AUTHOR: Janita Poe]
http://chicagotribune.com/textversion/article/0,1492,ART-13515,00.html

VOICE OF EXPERIENCE DISSENTS
Issue: Ed Tech
Clifford Stoll, an astronomer and computer whiz, wrote a book called
"Silicon Snake Oil" about the failings of the Internet -- the massive
amounts of unsorted, untrustworthy information on the system and the
isolation it can bring. Mr. Stoll is now working on a book arguing *against*
computers in schools. The link below takes you to a recent interview with
Mr. Stoll.
[SOURCE: Chicago Tribune (Sec 4, p.4), AUTHOR: Dallas Morning News]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808240005,00.html

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TELECOMMUNICATIONS REGULATION
=============================

COURT RULES CITY HAS RIGHT TO CHARGE FRANCHISE FEES TO COMPETITORS
Issue: Role of Local Government
The U.S. District Court ruled August 14 that Dearborn, Michigan, has the
authority to charge right-of-way fees to competitive local exchange carriers
(LECs), even though the incumbent Ameritech doesn't have to pay them. In a
related case, Judge Lawrence Zatkoff of the
U.S. District Court, Eastern Michigan, agreed with Ameritech that it has
"vested state franchise rights" and no "reasonable jury could find Ameritech
is required to enter into a franchise agreement with the City of Dearborn
pursuant to its regulatory ordinance."
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

BLILEY EXPRESSES CONCERN ABOUT REPORTED $5 BILLION OF MISSING LEC EQUIPMENT
Issue: Telephone Regulation
House Commerce Committee Chairman Thomas Bliley (R-VA) is "deeply concerned"
about the preliminary FCC audit indicating that major local exchange
carriers (LECs) can't find $5 billion worth of equipment recorded in their
books. Rep Bliley said that if carriers inflated their recorded investments,
consumers could be "overcharged millions of dollars" and there could be a
negative effect on competition. By September 4, Chairman Bliley wants the
FCC to answer detailed questions about what type of equipment is being
audited, when audits will be completed, what role the states have been given
in the audit procedure, how rates could be affected if carriers are missing
property recorded on the books, and what other FCC proceedings are affected
by the accounting records.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

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TELEVISION
==========

GORE COMMISSION SEEKS NEW DELAY
Issue: Public Interest/Digital Broadcasting
The Gore commission has been working to determine what the public interest
obligations of digital broadcasters should be. The commission now wants more
time and has asked the Administration to extend its report deadline from
October 1st to sometime in mid- or late December, said one commission
member. Members of the commission are meeting again on Sept. 9th to review a
preliminary draft of its final proposal. They expect the draft to include
suggestions for a voluntary code of conduct to be administered by the
National Association of Broadcasters (NAB). It will cover four program
areas, including: education, localism, minority interests and public
affairs. The code would also call for broadcasters to report on public
interest activities on a regular basis. "In some relatively clear and
explicit way, there has to be some accountability of the performance on
meeting the needs that have been ascertained," says Charles Benton, Chairman
of the "nonprofit media watchdog group" the Benton Foundation and a member
of the commission. While the NAB has not taken an official position on such
a code, it did make clear its opposition to it at a meeting earlier this summer.
[For more on the Commission see http://www.benton.org/Policy/TV/piac.html]
[SOURCE: Broadcasting&Cable (p.19), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/

FCC WANTS HDTV GLITCH SOLVED SOON
Issue: HDTV
William Kennard, Chairman of the Federal Communications Commission, has
written a letter to industry leaders expressing his concern over a small
technical glitch that threatens to postpone the launch of HDTV broadcasts
that are scheduled to begin on Nov. 1, 1998. The problem involves a cable
needed to carry digital signals from set-top cable converter boxes to HDTV
sets. Chairman Kennard's letter demanded a quick solution to the compatibility
problem which would prevent cable subscribers from receiving digital
programming. He wrote, "I call on your industries to communicate to the
American public that these solutions will be available and to redouble your
efforts to enable the American public to receive digital broadcast
programming over cable for display on first generation sets."
[See the letter http://www.fcc.gov/Speeches/Kennard/Statements/stwek862.html
[SOURCE: New York Times (D4), AUTHOR: Joel Brinkley ]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/24fcc.html

AFTER DROUGHT NETWORKS PUT MORE WOMEN IN TOP POSTS
Issue: Gender/Employment
While it may have "been a bad year for women in television," as reported in
Aug. 3 Broadcasting & Cable's in reference to the recent departures of
several women from powerful roles in the industry, August has brought a
change in tide, with some high profile promotion of female executives. CBS,
NBC, and Disney have all placed women in top executive positions this month.
Most people are pleased to see the return of women to top jobs, but there
are skeptics who fear that these new appointees are not like the outspoken
pioneers who preceded them. Kay Koplovitz, founder and former president of
the USA network, offers cautious enthusiasm: "It's clear from these
appointments that the company still resides with the chief executive, and
those are still men." She adds that "the good news is we're finally
starting to see a shift in comfort level and confidence level of the men
making decisions, and they have confidence now in both men and women. I'm
thrilled to see it."
[SOURCE: New York Times (D1), AUTHOR: Lawrie Mifflin]
http://www.nytimes.com/yr/mo/day/news/financial/tv-women-media.html

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OWNERSHIP
=========

FCC FLAGS RADIO DEALS FOR FURTHER ANALYSIS
Issue: Competition/Public Interest
Officials at the FCC have invited public comments on the competitive impacts
of radio deals that could possibly give one or two companies a dominant
share of a local radio market. In a public notice this month, regulators
"flagged proposed deals in three markets and asked for comments on their
potential impact on local competition." In the notice, the Commission said,
"We request that anyone interested in filing a response to this notice
specifically address the issue of concentration and its effect on
competition and diversity in the market at issue." "In seeking the public
comments, regulators are pointing to their obligation to ensure that
approved deals serve the public interest."
[SOURCE: Broadcasting&Cable (p.18), AUTHOR: Chris McConnell]
http://www.broadcastingcable.com/

CABLE ASKS FCC TO RAISE CAP
Issue: Cable/Ownership
A number of cable operators have responded to an FCC proposal to alter its
restrictions on the number of cable companies that a company can own. The
current regulations set the limit at 30 percent of homes passed nationwide.
Tele-Communications Inc. (TCI) said that regulators should raise the cap to
40 percent and Time Warner called for raising the limit to 35 percent.
They, along with AT&T, argue that relaxed caps could help cable compete with
local phone companies to offer high-speed data services. A collection of
groups object to loosening the caps, including the Assoc. of Independent
Video and Filmmakers, the Consumer Federation of America and Consumers
Union. "The case for lower limits is stronger than ever," the groups said,
pointing to expanding coverage among the largest multiple system operators.
"While increased consolidation has undoubtedly allowed the cable industry to
benefit from economies of scale, these benefits have not reached the public."
[SOURCE: Broadcasting&Cable (p.19), AUTHOR: Chris McConnell]
http://www.broadcastingcable.com/

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INTERNET
========

MARKETERS PONDER HOW TO SELL SOAPS WITHOUT SOAP-OPERAS
Issues: Internet/Advertising
The big unanswered question during the two-day Procter & Gamble Co.
conference on advertising and the Internet seemed to be, "Mr. Whipple, where
are you now?". The Internet is the first medium that has actually decreased
viewership of television and surfers of the Web have shown little
interest in the more traditional ad-style of serial storytelling. So now
high-powered industry execs are trying to figure out how to "sell soap
without soap operas." Participants in the conference struggled with issues
such as technical matters and whether banner advertisements and other online
vehicles can ever achieve the emotional resonance of a little boy in a Crest
television commercial bounding up to say "Look Ma! No cavities!" "I can't
think of one slogan developed on the Net that everybody knows," says Seth
Godin, the chief executive of Yoyodyne, an Internet promotion company. "It's
not a medium for the Great Big Idea." Though the Internet is often said to
be the first medium that enables marketers to interact with consumers one to
one, "it has yet to reveal itself as a means for mass marketing the communal
dreams in which a box of detergent or a can of soda comes to symbolize a way
of life."
[SOURCE: New York Times (D1, D7), AUTHOR: Saul Hansell]
http://www.nytimes.com/library/tech/98/08/biztech/articles/24advertising...

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SECURITY/ENCRYPTION
===================

IBM DISCOVERS WEB-HACKING PREVENTATIVE
Issue: Privacy/Encryption
International Business Machines Corp. is planning to announce today a new
system for sending information securely over the Internet. "The new method
promised to address a potential vulnerability in encryption systems used by
many Web sites to protect credit-card numbers and other personal information
while en route over the Internet." IBM executives have sought to
portray their latest development as a great benefit to electronic commerce,
but they stress that the encryption systems currently in use are practically
invulnerable to hackers. "I'm still buying books on-line all the time, so
obviously I'm not worried," said Charles Palmer, the senior manager of IBM
Research's network security and cryptography group.
[SOURCE: New York Times (B5), AUTHOR: Rebecca Quick]
http://www.nytimes.com/

2 RESEARCHERS BELIEVE THEY CAN BLOCK HACKERS
Issue: Security/Encryption
Zurich-based mathematicians Victor Shoup of IBM Research and Ronald Cramer
of the Swiss Federal Institute of Technology have developed a system for
securing information against computer hacker attacks. The researchers plan
to give away their findings for free to boost the integrity of Internet
electronic transactions and online privacy. "Businesses and consumers can
have greater confidence in Internet transactions because we've effectively
closed down the only way around a cryptosystem's main line of defense," Jeff
Jaffe, general manager for IBM's security products and services, said in a
statement.
[SOURCE: Chicago Tribune (Sec 1, p.6), AUTHOR: Reuters News Service]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808240168,00.html

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INTERNATIONAL
=============

CHINA PLANS FOR A 'SMART CARD' SYSTEM USING TECHNOLOGY FROM SCHLUMBERGER
Issue: International
China's consumer market is about to become the most ambitious testing ground
for "smart cards" to date. The People's Bank of China plans to distribute as
many as two million smart cards, plastic payment cards that have an embedded
computer chip, next year. The cards and electronic machines that process
them will be provided by Schlumberger Ltd., the New York technology and
oil-industry services business. Schlumberger will also train consumers and
clerks is how to use them.

==========
JOURNALISM
==========

SURFING THE WEB FOR NEWS IN A BLOCKBUSTER NEWS WEEK
Issue: Journalism/ Internet
Last week brought a noticeable increase of visitors to World Wide Web news
sites. A record amount of traffic was reported on both Monday,
during President Clinton's testimony, and during Thursday's military strikes. In
addition to seeking out the up-to-the-moment information on the Web, people
are also eager to share their opinion online. "The promise and expectation
of the Internet is the ability to reach out and touch everyone," says Jim
Schulte, editor of USA Today's online edition. "That's the whole strength.
Everyone gets their 2 cents in."
[SOURCE: New York Times (D3), AUTHOR: Lisa Napoli]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/24surf.html

PRESS LIABILITY
Issue: Journalism
"The more perceptive among us are coming to understand the Monica Lewinsky
saga for what it really is -- this year's O.J. Simpson story. With the
advent of CNN, cable talk shows and Internet scandal sheets, there must
always, from now on, be an 'O.J.' story." McCarron criticizes the press who
suggested that last week's bombings were 'Wag-the-Dog'-type chapters in this
year's OJ story. "Sooner or later, if enough of you complain loud enough, we
will get better. We can't get any worse."
[SOURCE: Chicago Tribune (Sec 1, p.13), AUTHOR: John McCarron]
http://chicagotribune.com/

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LABOR
=====

PHONE WORKERS IN CONNECTICUT START STRIKE (NYT)
PHONE WORKERS STRIKE IN CONN. (WP)
Issue: Labor/Local Telephone
In the latest local telephone strike of the summer, over 6,000 workers form
the Southern New England Telecommunications Corporation (SNET) began
picketing the Connecticut company on Sunday. Workers struck after the break
down of contract negotiations in which the union was asking for better
health-care benefits and more competitive wages. The Communication Workers
of America (CWA), who represents the striking workers, claims that SNET
employees are receive 20-25 percent less than industry average for the same
work. CWA workers reached a settlement with Bell Atlantic after a two-day
strike earlier this month, while about 34,000 CWA members are reaching the
second week of a strike against Denver based US West.
[SOURCE: New York Times (A17), AUTHOR: Amy Waldman]
http://www.nytimes.com/yr/mo/day/news/national/regional/ct-phone-strike....
[SOURCE: Washington Post (A7), AUTHOR: Bloomberg News]
http://www.washingtonpost.com/

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
Let me get this straight -- "[The Internet]'s not a medium for the Great Big
Idea." But television is. OK.