COMMUNICATIONS-RELATED HEADLINES for AUGUST 26, 1998

EDUTECH
To Help Wire Schools South Dakota Turns to Prisons (CyberTimes)

INTERNET
Study Says 70 Million American Adults Use They Internet (NYT)

CABLE
TCI's cable phone on hold (ChicagoTrib)

LABOR/JOBS
US West and CWA Trade Charges While SNET Fights Back
With Ads (TelecomAM)

PRIVACY
Privacy Double-Cross (WP)

CORPORATE
U.S. Investigating Microsoft's Role in Intel Decision (NYT)
A Struggling Adobe Rejects Bid by Quark (NYT)
CBS Considers Cost-Cutting Measures As Programming Expenses
Skyrocket (WSJ)

WIRELESS
For Paging Industry, a Bet on Two-Way Gadgets (WSJ)

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EDUTECH
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TO HELP WIRE SCHOOLS SOUTH DAKOTA TURNS TO PRISONS
Issue: Edutech
The South Dakota Department of Corrections is involved in a novel project
designed to connect the state's schools to the Internet at relatively low
costs, while teaching criminals a marketable job skill. Crew members
participating in the project, called Wiring the Schools, are nonviolent
convicts currently serving time for minor offences in South Dakota state
prisons. They work pulling cable, installing electrical outlets and doing
the other work necessary to connect the state's classrooms to the Internet.
"It was better than sitting, just doing time. You got to learn a lot," said
Tony M.Janssen, who participated in the program while he was serving a
sentence for a drunk driving conviction. Raymond W. Christensen, coordinator
of the effort, said the program was launched around two years ago at the
suggestion of Governor William J. Janklow.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
http://www.nytimes.com/library/tech/98/08/cyber/education/26education.html

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INTERNET
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STUDY SAYS 70 MILLION AMERICAN ADULTS USE THE INTERNET
Issue: Internet Use
A survey of online use released yesterday reports that more than one-third
of Americans over 16 use the Internet. This is an increase of more than 18
million people in the nine month study period through June 1998. The study
conducted by Nielsen Media Research and CommerceNet, estimates that the
largest increases are among blacks and American Indians, and among young
adults and women over 50. According to the study, 40.1 million men and 30.1
million women use the Internet and said percentage growth among the two
groups during the nine-month period was about equal. "Last fall, we thought
there might be a slight leveling off," said Loel McPhee, research director
at CommerceNet. "This isn't the case with the numbers we're seeing now. My
guess is we'll continue to grow until we hit the 50 percent mark"
[SOURCE: New York Times (BusTech), AUTHOR: The Associated Press]
http://www.nytimes.com/library/tech/98/08/biztech/articles/26traffic-sid...

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CABLE
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TCI'S CABLE PHONE ON HOLD
Issue: Cable/Telephony
TCI launched local phone service in a Chicago suburb two years ago. But in a
community of 75,000 people, only 500 households have switched from dominant
provider Ameritech. And even though AT&T wants TCI's cable telephony to be a
competitor in the local phone service market, TCI will be pushing high-speed
Internet access across its lines in the coming months. AT&T is waiting for
technology that will create a state of the art data network and allow the
company to charge super-low rates and still make money. TCI is currently
upgrading its network with fiber optics so it can provide more pay-per-view
channels and high-speed Internet access. If the proposed AT&T-TCI merger
goes through, Chicago will be the biggest market with the combined company's
infrastructure in place.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-13671,00.html

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LABOR/JOBS
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US WEST AND CWA TRADE CHARGES WHILE SNET FIGHTS BACK WITH ADS
Issue: Labor/Jobs
Talks continue on two fronts -- between the Communications Workers of
America (CWA) and US West, and CWA and Southern New England Telephone
(SNET). In US West territory, incidents of vandalism are on the rise and are
disrupting service. Rallies by workers are trying to prevent managers and
temporary workers from entering facilities. In Connecticut, the players are
competing through advertising -- workers expressing regret for the
inconvenience and SNET claiming that it is bargaining in good faith.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

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PRIVACY
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PRIVACY DOUBLE-CROSS
Issue: Privacy/Internet (Editorial)
Last week's Federal Trade Commission settlement with the GeoCities Web site
demonstrated that the government can enforce privacy standards on the
Internet. GeoCities was accused of misleading its 2 million clients about
the use of their personal information, telling customers that their data
would be released to a third party only with their permission. While the
government cannot regulate how Internet companies use consumer information,
they can prevent them from lying about it.
[SOURCE: Washington Post (A18), AUTHOR: Washington Post Editorial Staff]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/26/009l-082698-idx.html

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CORPORATE
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U.S. INVESTIGATING MICROSOFT'S ROLE IN INTEL DECISION
Issue: Antitrust
"Microsoft Corp. and Intel Corp. are so intertwined, so seemingly dependent
on each other for their success, that they are often referred to as a single
entity -- 'Wintel' -- in recognition of the degree to which Microsoft's
Windows operating system and Intel's microprocessors dominate the technology
of personal computing." But the government is now investigating whether
Microsoft used its power in the market to force even Intel, "its only real
peer," to shelve new technology efforts because they conflicted with
Microsoft's ambitions. This current look into Microsoft's past business
dealings directly relates to the federal government and state accusations
that Microsoft has used unfair business practices to protect its monopoly in
operating systems and to extend that monopoly into the new markets for
Internet software and commerce.
[SOURCE: New York Times (A1,D4), AUTHOR: Steve lohr & John Markoff]
http://www.nytimes.com/library/tech/98/08/biztech/articles/26microsoft.html

A STRUGGLING ADOBE REJECTS BID BY QUARK
Issue: Takeover Bid/Merger
Quark Ink., the graphic software publisher, said yesterday that it had
offered to acquire rival company, Adobe Systems Inc., at a premium to
Adobe's current stock price. Adobe turned down the offer. While Quark said
it was disappointed by Adobe's response and that it would continue to seek a
friendly transaction, it held out the possibility of a hostile takeover.
[SOURCE: New York Times (D1,D5), AUTHOR: John Markoff]
http://www.nytimes.com/yr/mo/day/news/financial/adobe-quark.html

CBS CONSIDERS COST-CUTTING MEASURES AS PROGRAMING EXPENSES SKYROCKET
Issue:Coorporate/ Television
The broadcast networks, concerned about their future in light of continual
strong performance by cable, have been paying astronomical prices for
popular shows in hopes of keeping audiences. NBC recently agreed to pay $13
million for each new episode of "ER". CBS, ABC and FOX just struck a $18
billion deal for the rights to NFL football. Despite this record spending on
sports and entertainment programming, network viewership continues to
decline. As a result, CBS Corp. is reviewing possible ways to cut costs and
increase profitability. While CBS reported a quadrupled net income in the
second quarter, executives feel under pressure to consider staff reductions,
outsourcing and other cost saving measures. No specific targets have been
set, and it will certainly be a challenge to cut heads and while keeping
the professional network look.
[SOURCE: Wall Street Journal (B2), AUTHOR: Eben Shapiro]
http://wsj.com/

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Wireless
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FOR PAGING INDUSTRY, A BET ON TWO-WAY GADGETS
The new trend in pagers is two-way devices. "To be a player in the future,
you're going to have a nationwide, two-way network," says wireless analyst
Darryl Sterling. Several communications companies including SkyTel,
BellSouth, and American Mobile Satellite Corp, already offer some form of
two-way data service. These pagers allow users to send messages back and
forth at the push of a button. Doug Brackbill and Steve Cox use this "high
tech form of passing notes" to consult with each other during marketing
meetings. Backbill compares it to baseball players exchanging signals during
a game; "We'll use them to confer privately on terms we're discussing with a
potential partner."
[SOURCE: Wall Street Journal (B1), AUTHOR: Stephanie Mehta]
http://wsj.com/

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