Communications-related Headlines for 8/3/98

CAMPAIGN FINANCE REFORM
Campaign Reform's Finest Chance (NYT)

INTERNET
Internet Is Snagging on Free-Market Appetites (NYT)
Senate Panel Would Reduce Tax Moratorium on Internet (NYT)
Bringing China On Line (With Official Blessing) (NYT)
Power Companies Embrace the Internet (NYT)
A Focus on Women at iVilliage.com (NYT)

CABLE
Lott Lobs 'Stink Bomb' Into Hearing (B&C)
Tauzin, Markey Team Up to Lower Cable Rates (B&C)

TELEVISION
Matsushita Digital TVs to Debut in US Stores (WSJ)
Networks to Launch a Rival to Nielsen Service (WSJ)
Hard at Work on 'Lazy' Interactive TV (WP)

RADIO
Working Women Use Radio Heavily (B&C)

JOURNALISM
Online Journalism Coming Into Its Own (NYT)
Reporting Live, Indiana Jones-Style (CyberTimes)

MERGERS
GTE Executive Says Regulators Haven't Raised Alarm About Merger
Ameritech deal faces challenge (ChiTrib)

PRIVACY
Gore Endorses Privacy Regulation By Industry

JOBS
Veto Threatened for High Tech Visa Bill (CyberTimes)
Seventeen Firms Make Pledge to EEO Principles (B&C)
Women's Work Still Excludes Top Jobs (B&C)

ADVERTISING
Deal to Create the Largest Interactive Ad Agency (NYT)

=======================
CAMPAIGN FINANCE REFORM
=======================

CAMPAIGN REFORM'S FINEST CHANCE
Issue: Campaign Finance Reform
Last week, Members of Congress fought off sixteen amendments to the
Shays-Meehan campaign finance reform bill, each designed to kill the
legislation. The House now seems poised to ban unlimited "soft money." "By
banning soft-money donations to parties and curbing fund-raising for
campaign ads by single-issue advocacy groups, the Shays-Meehan bill would
drastically reduce the role of special-interest money in elections. Why
would anyone allow such corruption to continue now that the opportunity for
reform is here?" [For more on campaign finance reform see Destination
Democracy http://www.destinationdemocracy.org/]
[SOURCE: New York Times (A20), AUTHOR: NYT Editorial Staff ]
http://www.nytimes.com/yr/mo/day/editorial/03mon1.html/

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INTERNET
========

INTERNET IS SNAGGING ON FREE-MARKET APPETITES
Issue: Internet Standards
The browser war between Microsoft and Netscape is an example of the
commercial fights that may ruin the greatest strength of the Internet which
is supposed to a truly global marketplace. Corporate powers are trying to
use their market strength to impose technical standards at the expense of
universal access to online goods and services. "Open is a euphemism for
commodity," recently wrote William Gurley, an analyst and venture capitalist
with Hummer Winblad Venture Partners. "In commodity markets, people
differentiate with production or distribution prowess and not with
innovation." And the companies with production and distribution prowess are
generally the market leaders.
[SOURCE: New York Times (C3), AUTHOR: Denise Caruso]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/03tech.html

SENATE PANEL WOULD REDUCE TAX MORATORIUM ON INTERNET
Issue: Internet/Legislation
Congress now has three versions of the Internet Tax Freedom Act. The House
version calls for a three-year moratorium on Internet taxes while the Senate
Commerce Committee has approved a six-year ban. Last week, the Senate
Finance Committee approved a version of the bill with just a two-year ban.
The Senate is now in recess for August and differences between the three
bills will probably be worked out before the bill reaches the Senate floor.
The concept of making the Internet a tax-free zone was criticized by Michael
Maserov, a senior policy analyst with the Center on Budget and Policy
Priorities. "This is just one more tax break for the affluent at the expense
of the poor," he said.
[SOURCE: New York Times (C5), AUTHOR: David Cay Johnston]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/03tax.html

BRINGING CHINA ON LINE (WITH OFFICIAL BLESSING)
Issue: Internet Access
China Internet Corporation (CIC) is trying to bring the Internet to China
and the country's 1.2 billion people. CIC has backing from the Chinese
Government as well as America Online, Bay Networks, Netscape, and Sun
Microsystems. But rival Internet service providers say CIC is out of step
with Internet users because it is trying to control what information people
have access to. There are four forbidden subjects: pornography, dissidents,
Tibet and Taiwan.
[SOURCE: New York Times (C1), AUTHOR: Mark Landler ]
http://www.nytimes.com/library/tech/98/08/biztech/articles/03hong.html

POWER COMPANIES EMBRACE THE INTERNET
Issue: Infrastructure
The newest "power" in the Internet service provider business may be your
utility company. Thirty of the largest electricity companies in the country
are now offering Internet access. Due to utility deregulation, these
companies are having to learn how to compete and find new sources of
revenue. Many of these companies own large fiber-optic networks built for
internal communications. They are finding new uses for the capacity they do
not need. [Gee, if these companies are or were monopolies, I wonder who paid
for all that excess communications capacity?]
[SOURCE: New York Times (C3), AUTHOR: Matt Richtel]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/03utilities-inte
rnet.html

A FOCUS ON WOMEN AT iVILLAGE.COM
Issue: Gender Issues
iVilliage is the leading online community for women on the Web. "Join our
community of smart, compassionate, real women today," the iVillage.com home
page invites visitors, offering an array of news, columns, advice and tips.
Although profits for the site are a long way off, the company has had now
problems raising capital. Women made up only one-third of Internet users
just to years ago -- now they represent one half of all users. iVillage also
focuses not so much on top-tier columnists, but on what readers can
contribute to topics like parenthood, relationships and workplace issues.
[SOURCE: New York Times (C6), AUTHOR: Lisa Napoli]
http://www.nytimes.com/library/tech/98/08/biztech/articles/03ivillage.html

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CABLE
======

LOTT LOBS 'STINK BOMB' INTO HEARING
Issue: Regulation
Senate Majority Leader Trent Lott (R-MS) paid a surprise visit to a Senate
Commerce Committee hearing last week to share some thoughts about raising
cable rates. "I want to make clear to the cable industry that you are
playing with live fire here," said Sen. Lott. "And if the rates continue to
go up the way they've been going up in some areas, I think a major problem
will erupt. We cannot have a situation where rates increase several
percentages, because our constituents will raise Cain. And when they do, we
will take action." Senate Commerce Committee Chairman John McCain (R-AZ),
while unhappy about rising cable rates, would still prefer competition over
re-regulation. "In my judgement, we should not go down the path of
tightening up or extending cable rate regulation." Following Congress's
August recess, Sen. McCain plans to introduce "pro-competition" legislation.
[SOURCE: Broadcasting&Cable (p.19), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/

TAUZIN, MARKEY TEAM UP TO LOWER CABLE RATES
Issue: Regulation
In an effort to give local communities a say in what their local cable
operator sells to them and a what price, Rep. Billy Tauzin (R-LA) and Rep.
Ed Markey (D-MA) unveiled a bill last week that would give local franchise
authorities the ability the decide whether cable companies are providing
their communities with enough choices at low rates. "If the local authority
found that the operator is not offering these choices, it could choose not
to 'certify' that operator with the FCC, allowing the FCC to continue
regulating it." This review process would continue every year until
competition came to the market or the cable operator satisfied the local
franchise authority.
[SOURCE: Broadcasting&Cable (p.19), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/

==========
TELEVISION
==========

MATSUSHITA DIGITAL TVS TO DEBUT IN U.S. STORES
Issue: DTV
This week, consumers will have the opportunity to purchase the first
digital-television sets to hit the US market. The Matsushita Electric
Industry Company's Panasonic televisions will sell at $5,000 to $6,000 and
require the additional purchase of a $1,500 set -top box in order to receive
the first digital broadcasts scheduled for November of this year. The sets
do receive analog signals on their high-resolution screens which, according
to Bill Mannion of Panasonic, make these the ultimate analog TV."
[Wall Street Journal (A4), Evan Ramstad]
http://wsj.com/

NETWORKS TO LAUNCH A RIVAL TO NIELSEN SERVICE
Issue: Television
The big four broadcast networks -- CBS, NBC, ABC, and Fox -- announced plans
last week to back a new TV ratings service to compete with the current
ratings monopoly of Nielsen Media Inc. The networks have long complained of
undercounting by Nielsen and claim that the launch of a new service in the
only way to insure reliability of the numbers that determine the fate of
billions of dollars of TV revenue each year. Nielsen officials question the
motives and objectivity of a service backed by broadcasters with dwindling
viewership.
[Wall Street Journal (B1, B4), Kyle Pope]
http://wsj.com/

HARD AT WORK ON 'LAZY' INTERACTIVE TV
Issue: Interactive TV
A new coalition, formed by Microsoft, Walt Disney, Intel, and CNN, is
developing a new industry standard for interactive (web) television. They
hope that increased compatibility will attract more subscribers to "lazy
interactive TV." Josh Bernoff, an analyst for Forrester Research, explains;
"Lazy interactivity is interactivity you can do with a remote in one hand
and a beer in the other." One concern about the new interactive system is
privacy. "Web privacy concerns have already raised consumers' and
regulator's antennae, but data collection [by interactive TV] will be more
pervasive and potentially pernicious," says a Forrester report.
[Washington Post (F12), Robert O'Harrow Jr.]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/03/022l-080398-idx.html

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RADIO
======

WORKING WOMEN USE RADIO HEAVILY
Issue: Radio
A recent profile of the country's 137 million female consumers from Interep
Research, concludes that radio reaches 80 percent of women in all key buying
demographics weekly. The report, that used Simmons spring 1998 data,
indicates that these numbers are of importance to advertisers because it
indicates that women still "retain primary homemaking and shopping
responsibilities within the household." In other words, the gender that
dominates males in population numbers (51%-49%) is also the one that is
buying most of the products. The report also finds that "working women are
21 percent more likely to be a heavy radio users than the average adult
[and] more likely to be a heavier user of radio than any other medium."
[SOURCE: Broadcasting&Cable (p.34), AUTHOR: John Merli, B&C Correspondent]
http://www.broadcastingcable.com/

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

ONLINE JOURNALISM COMING INTO ITS OWN
Issue: Journalism
Print journalists have been looking down on their online colleagues.
Career-wise, working for an online venture was "a leap over a black hole."
But for some, the opportunity to be part of creating something new and to
take a leadership position was worth the risk. Established writers are
moving onto the Internet now too and online journalism is gaining some
respect. Media companies are taking their online ventures more seriously and
print journalists are fighting to make contributions to online editions.
[SOURCE: New York Times (C6), AUTHOR: Jamie Heller (Executive Editor,
TheSreet.com]
http://www.nytimes.com/library/tech/98/08/biztech/articles/03online-journal
ism.html

REPORTING LIVE, INDIANA JONES-STYLE
Issue: New Technology/Reporting
Jim Bruton, a documentary producer of nature films from around the globe,
has invented a television field production package that puts the
transmission technology, currently available in a huge half-million dollar
satellite truck, into a backpack. He claims that his invention makes it
possible to broadcast live pictures from anywhere in the world within just
ten minutes of setup time. He calls his rig a "TV truck in a suitcase."
"Newsworthiness is not defined by broadcast quality; it's by who gets there
first," Bruton said. Solo journalists could use Bruton's system to transmit
information on a news story in a shorter amount of time than those having to
deal with satellite trucks and a properly equipped journalist could move in
even closer to a news scene at a fraction of the cost.
[SOURCE: New York Times (CyberTimes), AUTHOR: Lisa Napoli]
http://www.nytimes.com/library/tech/98/08/cyber/articles/03television.html

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MERGERS
=======

GTE EXECUTIVE SAYS REGULATORS HAVEN'T RAISED ALARM ABOUT MERGER
Issue: Mergers
"They [regulators] are not as concerned by GTE as a fortress," said GTE
Executive Vice President-General Counsel William Barr. "They will see this
as carrying competition nationwide and will not see it as a significant
potential competitive problem." The merger, Mr. Barr suggests, will create
an opportunity for LEC-to-LEC competition since GTE's territory is embedded
in the Ameritech, BellSouth, SBC and U S West regions.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

AMERITECH DEAL FACES CHALLENGE
Issue: Mergers
"One of the things SBC and Ameritech have told us is that `we're prepared to
demonstrate we'll bring more competition outside of our region.' But I
haven't heard them say they're going to do things to bring more competition
in their regions," FCC Chairman Kennard said at a Bloomberg News forum late
last week. He said the two companies have a "very heavy burden to show that
this merger is pro-competitive." SBC and Ameritech claim that by bulking up
through the merger they will be able to compete for customers in large
cities outside their combined region. Ameritech used the same sort of
reasoning when applying to be allowed to provide in-region long distance
service: once we compete with AT&T the long distance giant will compete for
our local customers. Chairman Kennard's remarks signal he ain't buying this
line. "The regional Bells have all played this game of turning the wheel one
degree at a time on local competition," said Andy Belt of Renaissance
Worldwide, a Boston-based consultancy. "They take one step to open their
markets and then look to see if that's enough to satisfy the regulators so
they can get into long distance. What Kennard is saying is that he wants
them to take three steps, and maybe he'll bless their merger."
[SOURCE: Chicago Tribune (Sec 4, p.3), AUTHOR:Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808030009,00.html

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PRIVACY
=======

GORE ENDORSES PRIVACY REGULATION BY INDUSTRY
Issue: Privacy
On July 31 Vice President Gore said that Congress should pass legislation to
protect the online privacy of children while allowing industry to
self-regulate privacy concerns for others. Privacy advocates said that the
Administration's proposal does not go far enough. The White House said it
will ask Congress for a bill that would set down a specific set of "fair
information principles" to be applied to the collection of information from
children.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

====
JOBS
====

VETO THREATENED FOR HIGH TECH VISA BILL
Issue: Jobs
Congressional leaders who had reached a compromise on legislation to
increase the number of visas available for high-technology workers, canceled
their planned votes on Friday under the threat of a presidential veto.
Although supporters of the legislation remain optimistic about working out
their differences with the White House, the news was a blow to companies who
had hoped to relieve their shortage in workers before the end of the fiscal
year in September.
[SOURCE: New York Times (CyberTimes 8/1), AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/98/08/cyber/articles/01visa.html

SEVENTEEN FIRMS MAKE PLEDGE TO EEO PRINCIPLES
Issue: Minorities
The FCC may not survive an ongoing court challenge to its equal employment
opportunity rules, but last week 17 broadcast and cable companies committed
to abiding by "EEO principles" even if an appeals court pulls the plug on
FCC's rules. "These companies know that reaching out and finding talented
men and women of all colors to run their companies is good business and the
right thing to do," said Commission Chairman William Kennard during a speech
to the National Association of Black Journalists. "I urge others to do the
same."
[SOURCE: Broadcasting&Cable (p.16), AUTHOR: Chris McConnell]
http://www.broadcastingcable.com/

WOMAN'S WORK STILL EXCLUDES TOP JOBS
Issue: Gender
Since last September, four of the television industry's most prominent and
arguably most powerful women -- Kay Koplovitz, Geraldine Laybourne, Margaret
Loesch and Lucie Salhany -- have lost their jobs. Whatever the reasons,
these moves depleted top-level women in the industry and underscored that
men are still running the show in TV. "B&C's Top 25 Media Groups are all
headed by men (July 7, 1997). No woman leads a Top 25 TV Group (April 6). No
woman sits atop any of the seven broadcast networks or a major cable
programming company. And there's just one woman among the Top 25 operators
-- Margaret Walson of Service Electric Cable -- at No. 25 (April 20)." With
ongoing consolidation within the industry, Salhany expects opportunities to
get worse for women trying to reach the top. There will be fewer top-level
jobs, and when positions do open up they will most likely be filled by other
men. But broadcasting and cable's glass ceiling may soon shatter. Although
"one does feel there's a point of view missing" at the very top, "there's a
really large group of aggressive supersmart, very savvy 30-year-olds that
are going to be the next
wave," says David Grant, president of Fox Television Studios. And he should
know...three of Fox's top executives (all executive vice presidents) are
women. Women are also running several cable channels and last week Patricia
Fili-Krushel became president of ABC television network. Several studies
have shown that the number women in the top ranks are increasing but some agree
that prejudiced is still out there. Koplovitz says that male CEO's are
excluding women, but not necessarily discriminating against them. The
problem is one of awareness, she says. "The CEOs in this business really
need to look at their own companies." A corporation's responsibility is "to
see that it prepares women to be among that [top] group. That's all we can
ask. I don't believe in demand, but people need the opportunity, and they
need enlightened leadership to get there."
[SOURCE: Broadcasting&Cable (p.22-27), AUTHOR: Elizabeth A. Rathbun]
http://www.broadcastingcable.com/
For other related stories see:
CABLE HAS MORE JOBS FOR WOMEN, BUT NOT AT THE TOP
[SOURCE: Broadcasting&Cable (p.25), AUTHOR: Elizabeth A. Rathbun]
http://www.broadcastingcable.com/
CONSOLIDATION MAKES LIFE TOUGHER FOR WOMEN OWNERS
[SOURCE: Broadcasting&Cable (p.22-27), AUTHOR: Elizabeth A. Rathbun]
http://www.broadcastingcable.com/

===========
ADVERTISING
===========

DEAL TO CREATE THE LARGEST INTERACTIVE AD AGENCY
Issue: Advertising/Mergers
In a late-90's version of PacMan, small ad agencies started by young
entrepreneurs are racing to gobble each other up. There will be an
announcement today that Agency.com has purchased Eagle River Interactive to
create the largest agency devoted to creating advertising for the Internet.
In recent months, Agency.com has also purchased Online Magic, Spiral Media,
Ketchum Interactive and Interactive Solutions. Interactive agencies provide
a range of services, including helping companies set up their own sites on
the World Wide Web and placing "banner" advertisements on other sites to
bring in traffic, Hansell writes. "An interactive company is one part
creativity, one part technology and one part business strategy," said an
industry executive.
[SOURCE: New York Times (C1), AUTHOR: Saul Hansell ]
http://www.nytimes.com/library/tech/98/08/biztech/articles/03omnicom.html

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