Communications-related Headlines for December 1, 1997

Universal Service

NYT: FCC to Open Net Discount Program For Schools and Libraries
TelecomAM: Commerce Committee Has 'Spoken' To FCC About Bliley Letter
TelecomAM: FCC Extends Review Period For Universal Service Contributions
TelecomAM: Michigan PSC Exempts Telcos From FCC's Universal Service
Total

FCC
B&C: Off the Block
TelecomAM: Consumer Groups Charge AT&T With Reneging On Promise To
Cut Rates
TelecomAM: FCC Asked By 30 To Reconsider C-Block Debt Restructuring Plan
TelecomAM: ALTS And Sprint Oppose BellSouth Louisiana Petition
TelecomAM: Louisiana PSC Urges FCC To Approve BellSouth Long
Distance Request

Internet
B&C: Washington Watch
NYT: Ideological Foes Meet on Web Decency
NYT: Money Starts to Show in Internet Shopping
TelecomAM: Microsoft Says Survey Shows Public Wants Free Market
WSJ: Internet Industry Plans Measures to Protect Kids
WP: Online Firms To Offer Own Curbs on Net

Jobs:
WSJ: Filling High-Tech Jobs Is Getting Very Tough
WP: Cultivating A New Crop of Workers

Mergers
B&C: TCI, US West in $1 B Deal

Technology
WSJ: At Home Plans Fast Internet Service At Hotels With Fourth
Communications
WP: Md. Drivers Rushing to Seal Records

Television
B&C: Cable Nets Do Digital
B&C: It Takes Time to Make a Safe TV

Media and Politics
WP: Nixon Hoped Antitrust Threat Would Sway Network Coverage

** Universal Service **

Title: FCC to Open Net Discount Program For Schools and Libraries
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/113097fcc.html
Author: Pamela Mendels
Issue: Universal Service
Description: The Universal Service Support Mechanism for Schools and
Libraries, or e-rate, is a program developed by the Federal Communications
Commission to offer lower rates for telephone service and Internet access.
"A computer on a kid's desk can be the most powerful tool to enrich a
child's educational experience," said a spokesman for William Kennard, the
FCC's chairman. "We in government cannot allow some students to be denied
access to this tool." The program is expected to begin to accept
applications from schools and libraries early next year.
[For more information on Universal Service access Benton's Universal Service
& Access Virtual Library at http://www.benton.org/Policy/Uniserv/.]

Title: Commerce Committee Has 'Spoken' To FCC About Bliley Letter
Source: Telecom A.M.---Dec. 1, 1997
http://www.capitol( at )cappubs.com
Issue: Universal Service
Description: According to a Commerce committee spokesman, the House
Commerce Committee and the FCC "have spoken about" Chairman Thomas Bliley's
request that the Commission suspend approval of factors used to determine
universal service contributions. Bliley said because of "the dramatic impact
that these factors could have on American consumers and service providers,"
the FCC should wait "until their impact can be fully assessed."

Title: FCC Extends Review Period For Universal Service Contributions
Source: Telecom A.M.---Dec. 1, 1997
http://www.capitol( at )cappubs.com
Issue: Universal Service
Description: The FCC has extended until Dec. 5 the period for reviewing
its proposed factors for determining a company's universal service
contribution requirement. So far, the Commission has acknowledged only
receiving comments on the proposed factors from AT&T. Last week, AT&T said
that the USAC was allowing an unacceptable level of non-reporting of revenue
and recommended the FCC require the USAC to tighten its auditing.

Title: Michigan PSC Exempts Telcos From FCC's Universal Service Total
Control Rule
Source: Telecom A.M.---Dec. 1, 1997
http://www.capitol( at )cappubs.com
Issue: Universal Service
Description: The Michigan PSC has granted the state's local exchange
carriers an exemption from the federal universal service requirement that
the recipients of federal universal service funds under the new programs
that begin in 1998 must offer low-income customers the ability to control
their toll usage by specifying a maximum amount of toll usage each month.
The PSC said it granted the two-year waiver to the local carriers because
neither the hardware nor software to provide toll control exists at this time.

** FCC **

Title: Off the Block
Source: Broadcasting&Cable (p.11)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: FCC Licensing
Description: As the FCC prepares to step up on the auction block,
commissioners have invited comment on whether they should spare some pending
licenses. In 1993, a court decision struck down the comparative criteria
that regulators had been using to choose license winners from competing
applications. Since that time, almost 2,000 TV and radio applications have
piled up at the FCC. The commission is now considering whether it should
develop a new set of criteria for those applications that had progressed
through the hearing stage before the 1993 ruling.

Title: Consumer Groups Charge AT&T With Reneging On Promise To Cut Rates
Source: Telecom A.M.---Dec. 1, 1997
http://www.capitol( at )cappubs.com
Issue: Telephone Rates
Description: The Consumers Union and the Consumer Federation of America
have asked the FCC to force AT&T to avoid increasing rates in certain
calling times. They've charged the carrier with reneging on its promise to
cut basic rates for lower access charges. In a letter to Commission Chairman
Kennard, the groups said AT&T's rate restructuring raises rates during early
morning, evening and overnight; the cheapest calling times. For example, the
cost of calling 7-8 am weekdays rose to 28 cents from 13 cents. AT&T
spokesman Wayne Jackson said, "This is not an increase, it's a restructure
and simplification driven by consumer desire."

Title: FCC Asked By 30 To Reconsider C-Block Debt Restructuring Plan
Source: Telecom A.M.---Dec. 1, 1997
http://www.capitol( at )cappubs.com
Issue: FCC
Description: 30 organizations have asked the FCC to reconsider its
C-block debt restructuring plan, reflecting several views: 1-Many, including
supplier and re-sellers, agreed with Nextwave's plea for a more liberal
plan. 2- A handful of F-block licensees urged that they get similar
treatment. 3-Several C-block licensees asked the Commission to go back to
its original rules. In addition, several companies had more specific
requests. Sprint said it isn't fair that companies choosing the amnesty
option can bid in re-auctions but those choosing the disaggregation and
prepayment options cannot. The Northern Michigan PCS Consortium said another
problem was that
vendors underestimated the cost of building out systems and that licensees
based their business plans on those low estimates.

Title: ALTS And Sprint Oppose BellSouth Louisiana Petition
Source: Telecom A.M.---Dec. 1, 1997
http://www.capitol( at )cappubs.com
Issue: FCC
Description: Two more of BellSouth's competitors filed comments with the
FCC opposing its Section 271 application to offer long distance in
Louisiana. BellSouth's claim that PCS represents local competition was
called "frivolous" and inconsistent with its earlier claims that it
shouldn't have to create a separate subsidiary for its PCS division because
"cellular and PCS are close substitutes," the ALTS said. Sprint accused
BellSouth of adopting "a strategy that combines relentless political
pressure on decision makers with endless legal challenges to rules and
regulations that might actually benefit customers."

Title: Louisiana PSC Urges FCC To Approve BellSouth Long Distance Request
Source: Telecom AM---Dec. 1, 1997
http://capitol.cappubs.com/am/
Issue: FCC
Description: The Louisiana PSC has recommended that the FCC approve
BellSouth's request for interLATA long distance authority in that state. The
PSC said BellSouth meets the Telecom Act's 14-point open-market local
checklist, has established reasonable and nondiscriminatory rates for
interconnection, unbundled elements, local transport and other competitor
needs, and has established operation support systems that "function properly
and allow potential competitors full, nondiscriminatory access." MCI
criticized the PSC decision to endorse BellSouth's "premature" filing,
saying the PSC acted "contrary to the expert opinion of its own
administration law judge and disregarded what MCI calls the "the fair play
test."

** Internet **

Title: Washington Watch
Source: Broadcasting&Cable (p.15)
http://www.broadcastingcable.com/
Author: Chris McConnell and Paige Albiniak
Issue: Internet Regulation
Description: Senate Commerce Committee Chairman, John McCain (R-AZ),
speaking to the International Council on Worldwide Television last week,
said there is still too much violence on TV and that the quality of
television has continued to go downhill. After 40 years of congress trying
to work with broadcasters, he believes that we should now look to the
Internet to make up for the difference in quality. Based on this, McCain
proposes that the global network be left as free from regulation as
possible. "Television via the Internet can achieve what regulation now
attempts to make over-the-air television achieve: programming that
entertains and informs, that reflects what we know and what we must yet
learn, and highlights our shared values as well as our differences."

Title: Ideological Foes Meet on Web Decency
Source: New York Times (D1, D6)
http://www.nytimes.com/library/cyber/week/120197conference.html
Author: Amy Harmon
Issue: Internet Regulation
Description: This week, a conference, sponsored by a coalition of
high-technology companies and public policy groups, will focus on how to
make cyberspace safe for children without adding on new government
regulation. The conference, being held in DC, is in reaction to a supreme
court ruling that struck down a congressional attempt to criminalize
indecent material on the Internet. The participants are hoping to develop a
solution that uses education, technology and existing laws to screen
children from inappropriate material on line.

Title: Money Starts to Show in Internet Shopping
Source: New York Times (D1, D4)
http://www.nytimes.com/library/cyber/week/120197shopping.html
Author: Saul Hansell
Issue: Internet: Sales and Services
Description: This holiday season may be the first in which consumers begin
to purchase a significant number of goods and services on line. American
Express calculates that "$4 billion to $6 billion will be spent making
credit card purchases over the Internet this year, with sales increasing at
more than a 400 percent pace annually." On the more conservative side,
Forester Research in Cambridge, MA, "puts the figure at $2.4 billion, double
last years total." Many consumers seem to be making the on line shopping
leap because of the international accessibility and 24 hour convenience.

Title: Microsoft Says Survey Shows Public Wants Free Market
Source: Telecom A.M.---Dec. 1, 1997
http://www.capitol( at )cappubs.com
Issue: Internet Regulation
Description: Microsoft has released a survey that it says demonstrates
that the public "has very favorable feelings" about the company and doesn't
want the gov't. to regulate it. The survey said that 62% of the public
believes business should ensure a choice of products without gov't.
interference. It also said that 25% of the people asked without prompting
which companies they "respect and admire" said Microsoft, more than any other.

Title: Internet Industry Plans Measures to Protect Kids
Source: Wall Street Journal
http://wsj.com/ (B16)
Author: Thomas Weber
Issue: Internet Content
Description: At a summit convening in Washington DC today, Internet industry
leaders will try to head off further attempts to regulate cyberspace by
unveiling a series of measures to protect children from online porn and
stalkers. (Type that 5 times fast) Expected measures include: tools to help
parents restrict kids' surfing on the Internet; a national hotline to report
online crimes; and a public service campaign about Internet safety. Cathy
Cleaver of the conservative Family Research Council argues that the summit
will neglect critical issues such as restricting Internet usage in schools
and using existing laws to control online pornography. She contents that the
summit will seek to "convince families that the Internet is safe. In my
view, that's a lie." The American Civil Liberties Union is expected to
announce a new coalition today, the Internet Free Expression Alliance, to
monitor the spread of filtering systems that could be used to foster
censorship in cyberspace.

Title: Online Firms To Offer Own Curbs on Net
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/01/143l-120197-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Content
Description: Several technology and media companies today will embrace a
set a of voluntary actions to prevent children from accessing adult-oriented
material on the global computer network. The companies plan a broad
public-education campaign to encourage parents to use software that blocks
adult-oriented Internet websites. Companies like AOL and Walt Disney plan to
release their own tools for parents to screen 'Net content. These efforts
represent a fresh overture to policy makers from an industry that wants to
prevent the fast-growing Internet from being regulated like TV and radio.
Steve Case, AOL's chief exec, said, "Regulation is not necessary. We want to
show that the interactive world is being proactive in building a medium we
can all be proud of."

** Jobs **

Title: Filling High-Tech Jobs Is Getting Very Tough
Source: Wall Street Journal
http://wsj.com/ (A1)
Author: Karen Damato & Deborah Lohse
Issue: Jobs
Description: This year, an estimated three out of every 10 computer-related
vacancies will take six months or longer to fill. Many companies are cutting
back programming projects, delaying new products and trimming expansion
plans. "This labor shortage isn't just simply an inconvenience for
businesses anymore," says Carol Ann Mearer of the Department of Labor. "It's
starting to affect competitiveness." The strong economy is creating
competition for all kinds of skilled workers and many companies must divert
workers to address the "Year 2000" problem. When companies hire expensive
outside consultants, workers find out what they could be making and jump
ship. The Labor Department figures there are 100,000 new computer jobs per
year, but only 25,000 computer-related bachelor's degrees awarded at
universities.

Title: Cultivating A New Crop of Workers
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/01/079l-120197-idx.html
Author: Peter Behr
Issue: Jobs
Description: A majority of the Washington region's estimated 2,500
technology face the same dilemma: widespread shortages of computer and
networking technicians. It's a job crunch that threatens to curb the
region's growth. The companies do have some choices, albeit stark ones:
1-They can train their own workers. 2-They can try to but the skills they
need by hiring away each other's employees or competing for the limited
supply of new graduates, or recruit foreign tech workers. 3-They can try to
expand the local supply of tech workers by cooperating with local
universities, community colleges, and high schools. 4-Like many Washington
companies, they can resign themselves to the worker shortage, leaving
millions of dollars in unfilled contracts and unsold services on the table.

** Mergers **

Title: TCI, US West in $1 B Deal
Source: Broadcasting&Cable (p.10)
http://www.broadcastingcable.com/
Author: John M. Higgins
Issue: Corporate Mergers
Description: In an effort to consolidate control of the metro Chicago
market, Tele-Communications Inc. is in the final stages of a $1 billion
system swap with the US West Media Group. The deal will exchange systems
serving more than 500,000 subscribers, including UMG properties serving
349,000 subscribers in suburban Chicago.

** Technology **

Title: At Home Plans Fast Internet Service At Hotels With Fourth Communications
Source: Wall Street Journal
http://wsj.com/ (B15)
Author: David Bank
Issue: Infrastructure
Description: At Home -- backed by TCI, Comcast, Cox Enterprises and other
cable television heavyweights -- is expected to announce today high-speed
Internet access for business travelers staying in hotels. At Home is trying
to expand its offerings beyond home Internet access -- its original business
which is off to a slow start. Fourth Communications Network will partner in
the venture.

Title: Md. Drivers Rushing to Seal Records
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/01/074l-120197-idx.html
Author: Paul W. Valentine
Issue: Privacy
Description: Spurred by growing concerns over electronic intrusion into
their private lives, more than 1,000 Maryland motorists a day are rushing to
block access to their driver records. Since a state law went into effect
Sept. 1, more than 126,00 drivers have opted to shut what has been an open
window for 55 years. The information, which includes names, addresses,
personal details, vehicle specs, and traffic violations, is maintained in
computerized data banks at the MVA and has been available to the public for
$5. But, with word of the new law spreading, the number of people directing
the MVA to keep such details private "is escalating," said Jim Lang, an
agency spokesman. "It will snowball, I think, as more people learn of it."
Any MD. driver can contact the MVA's toll-free hotline to block release of
personal information at: 1 (888) 682-3772, or their fax-on-demand service at
1 (410) 424-3050, or their home page at
www.inform.umd.edu/ums+state/md__resources/mdot/mva/index.htm.

** Television **

Title: Cable Nets Do Digital
Source: Broadcasting&Cable (p.6)
http://www.broadcastingcable.com/
Author: John M. Higgins
Issue: Digital TV
Description: MTV, Lifetime Television and the Walt Disney Co. have all
announced plans to expand into digital networks. With operators estimating
that only 10-50 percent of their customers will pay to receive the
additional programming tiers, programmers are having a difficult time
constructing digital networks with costs that are low enough to allow them
to make money. "Rob Stengel, MSO MediaOne's senior vice president of
programming, says the problem is circular. Networks, fear penetration, but
digital penetration will stay low unless operators have a strong product to
offer." While operators are happy to see more digital networks, many say
that it's not enough. "We still have the problem of the cost of the box and
lack of programming that appeals to a pretty wide audience," says Jerald
Kent, CEO of Charter Communications Inc. "Digital has a long time to go.
I'm not going to get digital boxes in somebody's house because of MTV."

Title: It Takes Time to Make a Safe TV
Source: Broadcasting&Cable (p.18)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: V-Chip
Description: Consumer electronics manufacturers are complaining that the
FCC's proposed deadline to include V-chips in half of the new TV sets by
July 1998 and all sets one year after that doesn't give them enough time.
The FCC says it set the initial July goal because it wants to give the
industry more time to develop a universal V-chip standard. However, the
industry claims that they cannot even start to develop V-chip embedded sets
until a standard is set. "Both of these deadlines are unreasonably short
and highly unrealistic in view of the absence of an approved rating system
or transmission standard," CEMA wrote in comments to the FCC last week. The
association says that it will take manufacturers 18-24 months to get sets on
the market once the FCC completes its technical requirements and approves a
television rating system.

** Media and Politics **

Title: Nixon Hoped Antitrust Threat Would Sway Network Coverage
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/01/073l-120197-idx.html
Author: Walter Pincus & George Lardner Jr.
Issue: Media & Politics
Description: Preoccupied with unfavorable treatment by the news media,
President Richard M. Nixon frequently sought ways to retaliate or at least
counterbalance negative portrayals. During a recorded conversation with a
White House aide named Charles Colson in 1971, he concluded that the best
way to intimidate the nation's three major TV networks was to keep the
constant threat of an antitrust suit hanging over them. Although Attorney
General John N. Mitchell wanted to file an antitrust suit against the
networks because of their monopoly ownership of prime-time programs,
according to the Nixon-Colson tape transcript, Nixon decided to have
Mitchell "hold it for a while, because I'm trying to get something out of
the networks."
*********
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the Thanksgiving holiday - Welcome back to daily grind!