ACCESS
TIIAP Grants (NTIA)
Two-Way Digital ITFS and MDS Communications (FCC)
CABLE
Liberty Media Unit Is Set to Develop Interactive Cable (WSJ)
LOBBYING
The Business of Persuasion Thrives in Nation's Capital (NYT)
Satellite Industry Lobbies to Save a Tax Credit (WSJ)
MERGERS
FCC may be a roadblock for Ameritech (ChiTrib)
S.E.C. Crackdown on Technology Write-Offs (NYT)
REGULATION
FCC Says Qwest-Bell Company Deals Violate Telecom Act (TelecomAM)
FCC Blocks Two Bells on Long Distance Entry (NYT)
FCC Rejects Alliance of Qwest, Two Bells (WSJ)
Neither LECs Nor CLECs Like FCC Advanced
Networking Proposal (TelecomAM)
FIRST AMENDMENT
Judge Throws Out Request to View Cookie Files (CyberTimes)
ANTITRUST
Microsoft Says New Book Disproves Antitrust Case (WP)
Harvard, MIT Fight Microsoft Demand for Research Gathered About
Netscape (WSJ)
======
ACCESS
======
TIIAP GRANTS
Issue: Internet Access
Commerce Secretary William M. Daley announced $18.5 million in matching
grants to 46 non-profit organizations and state and local governments across
the United States. The Commerce Department grants will fund innovative uses
of advanced networking technologies which bring the benefits of the
Information Age to underserved areas of the country. The projects funded
will improve delivery of social services, increase access to education,
reduce the cost of health care, and enhance the capabilities of public
safety officials. "These grants provide critical seed money to help forge
partnerships in local communities across the country ensuring that
telecommunications technologies live up to their potential by enhancing
community services, health care delivery, civic participation and much
more," Secretary Daley said. Bernadette McGuire-Rivera, Administrator of
NTIA's Office of Telecommunications and Information Applications, encourages
people who are interested in learning about the grant program to visit the
website or call 202-482-2048 for more information.
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/tiiap92898.htm
http://www.ntia.doc.gov/otiahome/tiiap/Newstuff/newtiiap.html
TWO-WAY DIGITAL ITFS AND MDS COMMUNICATIONS
Issue: Internet Access
The Commission has cleared the way for Multipoint Distribution Service (MDS)
and Instructional Television Fixed Service (ITFS) licensees to offer two-way
digital services. As a result of today's action, a new, competitive group of
players may emerge for delivery of high speed, two-way communications
service to consumers. Both individual and business consumers will be able to
use the high-speed and high-capacity data transmission and Internet service
that will be available through the new systems. Consumers will be able to
take advantage of new video-conferencing, distance learning and continuing
education offerings. MDS typically provides video programming to subscribers
and is often called "wirelesscable." ITFS licensees are typically
educational institutions that use the service for distance learning. Both
are currently one-way services, in which a transmitter sends a signal
downstream to subscribers.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1998/nrmm8030.html
=====
CABLE
=====
LIBERTY MEDIA UNIT IS SET TO DEVELOP INTERACTIVE CABLE
Issue: Cable
Liberty Media Corporation is planning to convert one analog cable television
channel on TCI systems to 12 to 15 digital channels. The new channels would
be used for interactive services, including home shopping. TCI presently
owns Liberty Media and uses it for program production but is spinning the
subsidiary off in the AT&T deal. TCI presently has 10
million cable subscribers. TCI expects digital set-top boxes that will
allow the interactive services to be received to be widely distributed
beginning in 1999.
[SOURCE: Wall Street Journal (B2), AUTHOR: Leslie Cauley]
http://www.wsj.com/
========
LOBBYING
========
THE BUSINESS OF PERSUASION THRIVES IN NATION'S CAPITAL
Issue: Lobbying
The first of a two-part look at the lobbying industry which is thriving
during the time of a divided Government. In 1997, $1.2 billion was spent on
influencing the Federal Government and at least that amount is predicted for
this year. "The demand for knowledgeable people who can track what is going
on Capitol Hill and the government and can figure out the pressure points
that companies should be touching in Washington has greatly increased," said
Richard Shapiro, executive director of the Congressional Management
Foundation, a private organization which educates the Congress on how to
operate. This long article takes a look at what lobbyists are earning; on
Wednesday -- their techniques.
[SOURCE: New York Times (A1), AUTHOR: Jill Abramson]
http://www.nytimes.com/library/politics/092998lobby-industry.html
SATELLITE INDUSTRY LOBBIES TO SAVE A TAX CREDIT
Issue: Satellite
The Satellite Industry Association, a trade group, says a key tax credit for
satellite firms will be lost in the transfer of government oversight from
the Commerce Department to the State Department. Presently U.S. satellite
company sales to overseas companies receive a 5.2% tax credit. Under the
new law, which is expected to be completed in this congressional session,
the credit would drop to 2.6% because satellites will be treated as military
sales. Sen. Connie Mack has introduced a bill that would raise the tax
credit to 5.2% for all defense-related exports. Industry officials also say
the transfer of government oversight may cause delays because the State
Department may take longer for licensing than the Commerce Department does.
The new procedures will include congressional notification which industry
officials say cause sales delays.
[SOURCE: Wall Street Journal (A2), AUTHOR: Robert S. Greenberger & David S.
Cloud]
http://www.wsj.com/
=======
MERGERS
=======
FCC MAY BE A ROADBLOCK FOR AMERITECH
Issue: Mergers
"I don't want to prejudge the issues," said FCC Chairman William Kennard,
"but I have a healthy degree of skepticism. These companies have a heavy
burden to demonstrate there will be a net increase in competition." Although
the FCC has approved phone mergers in the past, SBC and Ameritech will have
to pass over a higher bar to win approval. The proposed mergers of
SBC-Ameritech and Bell Atlantic-GTE is forcing the FCC to decide "whether it
is in the national interest to have two super-carriers, each with 97 percent
of the market in their own territories and together controlling about 70
percent of local access lines." Chairman Kennard is concerned that the
mergers should not be approved before local markets are opened to
competition. "It is a real question why [SBC and Ameritech] haven't gone
into other markets already," Chairman Kennard said. "They advocate the only
way to have competition in 30 markets is to have two regional Bells combine.
I say show me why that is the case when competitive local exchange carriers
are now in 135 cities and have raised $20 billion in equity capital since
the (telecommunications) act was
passed." Kelly Welsh, Ameritech executive vice president and general
counsel, said "People talk of consolidation versus competition, but that's a
false choice. What you have emerging is consolidation that leads to more
intense competition."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-15719,00.html
SEC CRACKDOWN ON TECHNOLOGY WRITE-OFFS
Issue: Mergers
In a speech yesterday, Securities and Exchange Commission Chairman Arthur
Levitt announced that the agency will increase scrutiny of companies that
use aggressive accounting techniques to inflate their quarterly earnings.
America Online is an example of companies that are using an accounting rule
to write off as soon as they buy them the purchase price of companies as
"research." The SEC delayed publication for AOL's 4th quarter fiscal
earnings for two months before settling on how much of the purchase could be
written off. See also, 'Trick Accounting Draws Levitt Criticism,
http://www.nytimes.com/yr/mo/day/news/financial/sec-accounting.html]
[SOURCE: New York Times (C1), AUTHOR: Saul Hansell]
http://www.nytimes.com/library/tech/98/09/biztech/articles/29aol-marketplac
e.html
==========
REGULATION
==========
FCC SAYS QWEST-BELL COMPANY DEALS VIOLATE TELECOM ACT
FCC BLOCKS TWO BELLS ON LONG DISTANCE ENTRY
FCC REJECTS ALLIANCE OF QWEST, TWO BELLS
Issue: Long Distance
The Ameritech and US West deals to bundle Qwest long distance service with
their own in-region local phone service violates the Telecommunications Act
of 1996, the FCC has ruled. The FCC found these problems with the deals,
TelecomAM reports: 1) The Qwest deals give Ameritech and US West clear
competitive advantages, "including the ability to provide one-stop shopping
for local and long distance;" 2) The companies "are holding themselves out
to customers as providers of long distance service by marketing and selling
under a single brand name" both local and long distance services; and 3)
Ameritech and US West "are performing various functions and activities that
are typically performed by those who resell long distance service." The
opposition to these deals began in court and in June judges in Chicago and
Seattle referred the questions to the FCC.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/
[SOURCE: New York Times (C4), AUTHOR: Seth Schiesel]
http://www.nytimes.com/yr/mo/day/news/financial/fcc-babybells.html
Issue: Long Distance
[SOURCE: Wall Street Journal (B8), AUTHOR: Stephanie N. Mehta & John Simons]
http://www.wsj.com/
NEITHER LECS NOR CLECS LIKE FCC ADVANCED NETWORKING PROPOSAL
Issue: Advanced Services
In comments filed at the FCC, neither incumbent nor competitive new entrants
in the local phone service industry seem to like the Commission's proposed
rules on advanced networks. The FCC has proposed to free incumbent's of
regulation if they create a new subsidiary to offer advanced services. "The
Commission's experience with separate affiliates clearly shows that
structural separation generally is detrimental to investment, innovation and
competition, and results in lost efficiencies, increased costs and reduced
services for consumers," BellSouth said. There's not even any evidence that
ILECs would cause competitive harm, the company said. The FCC does not have
the authority to waive the Telecom Act's resale and interconnection rules
for ILECs as the agency proposed, America's Carriers Telecom Association
(ACTA) said. If the agency decides "to ignore the law and implement its
proposals," it should adopt more safeguards, said ACTA.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/
===============
FIRST AMENDMENT
===============
JUDGE THROWS OUT REQUEST TO VIEW COOKIE FILES
Issue: First Amendment
Judge Thomas Higgins of U.S. District Court has decided to throw out a law
suit in which a Tennessee journalist sought to review the files of public
employees in order to see how they spent their time online. The town in
question, Cookeville, TN, does not allow access to digital data so there was
no basis for the journalist's challenge. Geoff Davidian, online publisher of
The Putnam Pit http://www.putnampit.com/, which primarily focuses on city
politics in Cookeville, wanted to examine cookie files to see if city
employees were visiting sites unrelated to their work. He will appeal the
ruling. "When the government has money they can spend it all to try to
thwart legitimate journalism," Davidian said. "You may not like our tone,
you may not like our politics, you may not like our graphics, but we intend
to get the truth."
[SOURCE: New York Times (CyberTimes), AUTHOR: Lisa Napoli napoli( at )nytimes.com]
http://www.nytimes.com/library/tech/98/09/cyber/articles/29putnam.html
=========
ANTITRUST
=========
MICROSOFT SAYS NEW BOOK DISPROVES ANTITRUST CASE (WP)
HARVARD, MIT FIGHT MICROSOFT DEMAND FOR RESEARCH GATHERED ABOUT NETSCAPE (WSJ)
Issue: Antitrust
One of the legal approaches by Microsoft Corp. in its defense of antitrust
charges may be emerging with the software giant's attempt to get information
from two professors about Netscape Communications. Two business professors,
one from Harvard and the other from MIT, have written a soon-to-be-published
book on Netscape's operations. The book reportedly has Netscape officials
admitting to technical and strategic missteps in company operations in their
competition with Microsoft. Microsoft has gone to court to get copies of
the professors' research. The professors have objected on First Amendment
grounds. Microsoft is expected to use the information to show that
Netscape's business misfortunes were caused by its own problems and not
caused by Microsoft's competition.
[SOURCE: Washington Post (E01), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/WPlate/1998-09/29/121l-092998-idx.html
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke]
http://www.wsj.com/
*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
On to Atlanta!