TELEPHONY
SBC Revises Ameritech Merger Conditions (SJM)
ICC Is Firm on Raising Phone Fines (ChiTrib)
Local Telephone Competition is Increasing (WSJ)
DIGITAL DIVIDE
Gilmore Proposes Tech Aid (WP)
INTERNET
Starmedia Network Launches Internet-Access Service in Brazil (WSJ)
BBC Launches Upmarket Free Internet Service (SJM)
POLITICAL DISCOURSE
Democracy Finds Fertile Ground Online (NYT)
Privacy Loses In Web Bid (WP)
EDTECH
Click Here For The Ivory Tower (NYT)
TELEPHONY
SBC REVISES AMERITECH MERGER CONDITIONS
Issue: Mergers
The Federal Communications Commission has issued a new list of conditions
made by SBC in attempt to gain approval for its acquisition of Ameritech.
The revised list of conditions manly elaborates on existing items already
agreed to. The company has added specificity to some definitions in hopes
of addressing the concerns of competitors that oppose the merger.
Opponents, however, say that the new conditions still fail to adequately
address the unfair advantages the combination would create. Together, the
SBC and Ameritech would form the largest U.S. local carrier, controlling
over one-third of American phone lines. The deal is still pending approval
from Illinois regulators and the FCC, which is expected to vote within a
next few weeks.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/032546.htm)
ICC IS FIRM ON RAISING PHONE FINES
Issue: Mergers
Members of the Illinois Commerce Commission (ICC) reaffirmed their
intention to
dramatically increase fines for poor phone service as part of the conditions
on the proposed SBC-Ameritech merger. Ameritech has paid $4 million in each
of the past four years for poor service in Illinois; ICC staff has
complained that Ameritech evidently finds it cheaper to pay the fines than
to spend money to upgrade service. The ICC now intends to give SBC/Ameritech
six months to upgrade service or face a $15 million fine and, if the
combined company fails next year as well, a $30 million fine. "Our intention
isn't collecting millions in fines," said ICC Chairman Richard Mathias.
"Compliance is what we seek." The commissioners are preparing a written
order that would approve the merger, but would also be intended to put
Illinois at the forefront of local phone service competition. The ICC hopes
to have a final vote on the matter by the end of next week.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99090201
62,FF.html)
LOCAL TELEPHONE COMPETITION IS INCREASING
Issue: Competition/Telephony
In 1997, new local phone companies took up only 1% of the local telephone
market. A new federal report says in 1998 that number rose to 1.7% of
the market. The 60% increase in market share in one is causing the Bell
operating companies (BOC's) to argue that they have significantly opened
their lines to competition. The BOC's are hoping that the FCC will let them
into the long-distance market. (The Telecommunications Act of 1996 requires
proof of local competition before any of the BOC's can enter the long
distance market.) Consumer Union spokesman David Butler said that the small
increase is due to local competition for high-end business, not local
consumers. Peyton Wynns, who heads the FCC department that compiled the
report, said that these numbers are mirroring that of long-distance when it
was deregulated in the 1980's.
"Their numbers were really tiny, but were growing very fast," he said. Wynns
believes new local companies are starting to target residential and small
business
customers. On Tuesday, Bell Atlantic asked New York regulators for
permission to offer long-distance, but new local companies contend that the
local market is not yet open.
[SOURCE: USA Today (B2), AUTHOR: Paul Davidson]
(http://www.usatoday.com)
DIGITAL DIVIDE
GILMORE PROPOSES TECH AID
ISSUE: Digital Divide
Virginia Governor James S. Gilmore (R) announced yesterday a proposal that
would give high school and college students tuition benefits, while
granting tax breaks to the technology companies that hire them as interns.
Governor Gilmore announced the proposal yesterday in a presentation to a 38
member Commission on Information Technology. Yesterday, the Commission
issued a report partially crediting the shortage of technology workers in
VA to technology companies' hiring policies that favor those with several
years' experience over two-year college graduates and the inexperienced.
The governor said his plan was a "challenge