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Communications-related Headlines for 3/9/98

Television
B&C: Gore group considers two hours of free airtime
B&C: FCC looks beyond free airtime
B&C: Ready *and* not, here comes DTV
B&C: Under fire from both sides
B&C: Big bucks planned for anti-tobacco ads
WSJ: Tribune Co. to Keep Two Florida Outlets Pending FCC Review
NYT: Another Setback in Quest To Marry TV and Phones

Telephony
TelecomAM: Rural States Say FCC Universal Service Plan Will Raise Rates
WSJ: Proposals Offer Baby Bells Quick Entry In Long Distance if They Are
Split Up
WSJ: Cellular Carriers Bypass Dealers, Creating Static
WP: Undersea Cables Carry Growing Rivers of Data
NYT: MCI and Worldcom Set For Telefonica Alliance

Education
WP: A Corporate Seat in Public Classrooms

Encryption
WSJ: Sun Holding Off On Plans to Market Encryption System

** Television **

Title: Gore group considers two hours of free airtime
Source: Broadcasting&Cable (p.50)
http://www.broadcastingcable.com/
Author: Michael Stroud
Issue: Digital TV/Free Time for Candidates
Description: At its meeting in Los Angeles last week, the Gore commission
heard testimony from Tracy Westen, president of the Center for Governmental
Studies who proposed that national political parties be granted two hours
per TV station in free political airtime for 60 days before an election.
"The only way many candidates can now compete is by raising extraordinary
amounts of money," Mr. Westin said. "At least [this approach] allows
everybody to get in the door." [For a summary of the meeting see
http://www.benton.org/Policy/TV/meeting4.html]

Title: FCC looks beyond free airtime
Source: Broadcasting&Cable (p.12)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Digital TV
Description: A draft of next month's proposed rulemaking at the Federal
Communications Commission includes political airtime, children's educational
programming, local informational programming, and programming for
"underservered" populations. The rulemaking will probably be released at the
Commission's April 2 public meeting. Some of the proposed public interest
obligations may apply to analog licenses as well. [For more on digital TV
see http://www.benton.org/Policy/TV/]

Title: Ready *and* not, here comes DTV
Source: Broadcasting&Cable (p.29)
http://www.broadcastingcable.com/
Author: Steve McClellan
Issue: Digital TV
Description: This week's B&C cover story examines the status of the
transition to digital television. Although the FCC gave its final OK last
month on the new channel assignments, broadcasters "don't yet have their
digital acts together." The Big Four networks are expected to announce their
plans at the next National Association of Broadcasters meeting April 4-9.
ABC, NBC, and CBS are expected to do some mix of HDTV in primetime and SDTV
during daytime hours. Fox appears interested in doing SDTV at all times. But
the networks have not decided on format yet. Extensive stories cover
must-carry rules, cable compatibility, and television set availability.

Title: Under fire from both sides
Source: Broadcasting&Cable (p.24)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: FCC
Description: FCC Chairman Bill Kennard has been under heavy scrutiny from
Republicans since Congress reconvened -- now he's under fire from Democrats
as well. Rep. John Dingell (D-MI) launched an attack on Chairman Kennard
last week -- he's unhappy with the Commission's implementation of the
Telecom Act of 1996 and the Chairman's willingness to consider mandates for
free time for political candidates. Insiders say the new Chairman has not
given enough attention to congressional allies and critics.

Title: Big bucks planned for anti-tobacco ads
Source: Broadcasting&Cable (p.26)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Television/Advertising
Description: The Clinton administration pledged $7 million last month for
radio and multimedia ads to educate the public about a new law forbidding
sales of tobacco products to anyone under 18 years old. The Administration
plans to spend ~$300 million this year on anti-drug and census education --
"bringing the grand total of administration spending on television and radio
ads to about half a billion dollars. National Association of Broadcasters
President Eddie Fritts has warned broadcasters that making the government
pay for these ads may be fodder for demanding additional public interest
obligations. "The fact that broadcasters are not ready and willing to
provide a significant amount of time for discussion of issues like this is
quite revelatory. The fact is that it shouldn't be necessary to buy the
time," said Andy Schwartzman of the Media Access Project
http://www.mediaaccess.org/.

Title: Tribune Co. to Keep Two Florida Outlets Pending FCC Review
Source: Wall Street Journal (B5)
http://wsj.com/
Issue: Ownership
Description: The FCC extended a temporary waiver that had allowed the
Tribune Co. to own both the Sun-Sentinel of Fort Lauderdale and WDZL-TV in
Miami. The
waiver was set to expire March 22, at which time Tribune would have been
forced to sell one of the properties. FCC rules generally bar common
ownership of a TV station and a daily newspaper that serve the same market.
However, the agency is expected to soon review whether the rules should be
scrapped.

Title: Another Setback in Quest To Marry TV and Phones
Source: New York Times (D7)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/09phone.html
Author: Seth Schiesel
Issue: Television
Description: The much anticipated convergence of television and telephone
took another step back last week when Stephen Weiswasser announced that he
would step down from his position of running Americast, a joint television
venture established by Ameritech, BellSouth, GTE, SBC Communications and the
Walt Disney Co. Americast, based in Los Angeles, was developed in 1995 as a
vehicle for delivering television programs over telephone lines. Weiswasser
said, "the reason I'm leaving, candidly, is not because I think it's dying.
It's that the things that brought me to Americast are not now the things
that Americast is doing. The original concept was that we at Americast were
going to develop a lot of new content." Last summer, Americast decided to
give up its marketing and programming divisions in favor increased emphasis
on technology development. This move seems to be a developing trend in
corporate strategies, as "a focus on core businesses has come back into
vogue among high-technology companies."

** Telephony **

Title: Rural States Say FCC Universal Service Plan Will Raise Rates
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The FCC's plan to reform universal service would cause major
rate distortions within high-cost areas, representatives of rural states
said. Maine PUC Chairman Thomas Welch and Bell Atlantic Senior VP Thomas
Tauke said the federal gov't. should give more support to states with a
disproportionate number of high-cost customers. North Dakota PSC
Commissioner Bruce Hagen said his state would need to impose a 42% surcharge
under the FCC's plan, whereas absorbing costs nationally would require only
an 8% charge.

Title: Proposals Offer Baby Bells Quick Entry In Long Distance if They Are
Split Up
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Long Distance
Description: In an unexpected move, Republican Sen. Mike DeWine of Ohio and
Democratic Sen. Herb Kohl of Wisconsin began circulating a draft version of
a bill that would let the Bells offer long distance phone services in their
home markets if they completely divest themselves of their local network
facilities. LCI International filed a similar petition with the FCC, calling
for the Bells to create separate wholesale and retail businesses if the
Bells want to quickly enter the long-distance market. Not surprisingly, none
of the five Baby Bells are embracing the idea, which some proponents have
dubbed "Divestiture II" in reference to the 1984 breakup of the old American
Telephone & Telepgraph Co. "It doesn't make sense," said Randy L. New, VP of
legislative implementation for BellSouth, the Atlanta-based Bell. "Breaking
up the Bell operating companies is a very radical thing to do."

Title: Cellular Carriers Bypass Dealers, Creating Static
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Competition/Wireless
Description: Local dealers who helped build the cell-phone market are saying
that the wireless-phone carriers are trying to squeeze them out of business.
Strategis Group, a Washington research firm, estimated that at least 50
lawsuits have been filed by dealers against carriers. Most of the suits
allege unfair trade practices, which the carriers deny. There's no question
that the carriers, faced with more competition from upstarts, are getting
more aggressive. Not only are they invading dealers' turfs with their own
stores and kiosks, but they are also offering special prices and
telemarketing to reach potential customers in their own homes.

Title: Undersea Cables Carry Growing Rivers of Data
Source: Washington Post (A1,A10)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/09/041l-030998-idx.html
Author: Mike Mills
Issue: Infrastructure
Description: Undersea fiber-optic cables have become one of the most
important components of today's communication- and information-based world.
The majority of the world's telephone and Internet traffic travels through
these hair-thin tubes laying along the floors of the world's seas. Last year
the AT&T Corp. purchased a worldwide fleet of ships made by Tyco
International Ltd. "that has installed more transoceanic fiber than any
other company." Rob Jones, captain of one of these ships, the C.S. Global
Link, said, "most people really do not have a grasp of the amount of
telephone cables that are undersea, and that their calls actually go through
them." According to the KMI Corp., of Newport RI, there are 228,958 miles of
fiber-optic cable currently lining the ocean floor - that is enough to
encircle the earth about 10 times. KMI estimates that by the end of 1999
another 177,717 miles of cable will be installed.

Title: MCI and Worldcom Set For Telefonica Alliance
Source: New York Times (D3)
http://www.nytimes.com/yr/mo/day/news/financial/mci-telefonica-deal.html
Author: Seth Schiesel
Issue: Merger
Description: Telefonica, the largest communications provider in Latin America
and Spain's dominant telephone company, plans to announce today an alliance
with Worldcom Inc. and MCI Communications Corp. The announcement would come
11 months after Telefonica dropped its original U.S. partner, the AT&T
Corp., for a deal with the international group called Concert, led by
British Telecommunications PLC. When Telefonica made its decision last
April, MCI was part of Concert. So while BT is still in charge of Concert,
Telefonica's latest move appears to demonstrate that the company is
primarily interested in dealing with MCI. BT also announced last month, that
it was no longer interested in maintaining a link with the Spanish company
now that MCI wasn't part of Concert.

** Education **

Title: A Corporate Seat in Public Classrooms
Source: Washington Post (A1,A6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/09/056l-030998-idx.html
Author: Rene Sanchez
Issue: Education/Advertising
Description: In reaction to all of the advertising placement by private
companies in schools, state lawmaker Marlin Schneider (WI) proposed
a total ban on it. But his idea is receiving strong opposition, much of it
from educators. In response to this opposition, Schneider, a former teacher,
said, "Schools need the money and they have nowhere else to turn. So they're
letting these companies come in and saturate kids with advertising. Ads are
everywhere in schools now." While corporate advertising isn't new to the
nation's school systems, companies are becoming more sophisticated and
relentless in their efforts to lure students to their products. "The issue
is igniting complex debates: Some school boards say that selling advertising
space on their sites or using corporate material in class can be a creative,
harmless way to raise money without burdening taxpayers. Others denounce the
pacts as schemes that turn schools into instruments of corporate propaganda
and pollute young minds in a captive setting that should be held more
sacred." (Is the message on the billboard or the blackboard?)

** Encryption **

Title: Sun Holding Off On Plans to Market Encryption System
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Don Clark
Issue: Encryption
Description: A controversial plan by Sun to market Russian-made encryption
software is stalled, as the computer maker awaits findings of a U.S.
government inquiry that has dragged on for nine months. The Palo Alto,
Calif., company announced a plan to market data-security software developed
by Elvis+Co., a company formed by scientists from the former Soviet space
program. Sun, which holds a 10% stake in Elvis+, planned to ship the
software to foreign customers from distributors outside the U.S. Sun's move
attracted wide attention because it seemed to fall outside the jurisdiction
of U.S. regulatory agencies, which control the export of powerful encryption
products on grounds that terrorists and others could use them to foil
wiretaps. Nevertheless, the U.S. Commerce Dept. began a review of Sun's
plans, examining the contention that Elvis+ received no technical assistance
from Sun that would make the encryption software subject to U.S. export
controls.
*********

Communications-related Headlines for 3/6/98

Regulation & Competition
TelecomAM: SBC Says It Had Little Choice But To Challenge Telecom Act
WSJ: America, the Global Telecom Laggard
TelecomAM: Ameritech Joins Two Other Bells In Seeking Exemptions For Data

Long Distance
WSJ: FCC Is Asked for Permission For Long-Distance Service
TelecomAM: Sprint Says It Passed On All Access Charge Reductions To Users
TelecomAM: McCain Calls On Kennard To List Requirements For Meeting 271 List

Internet
NYT: Children's First Amendment Rights Lost in The Filtering Debate

Television
WP: FCC To Back V-Chip
NYT: AT&T Is Seeking Cable-TV Alliance

InfoTech
WP: Intel's Celeron Is A New bag of Chips

Lifestyles!
NYT: Advertising: Bill Gates Is Tiger Woods? Well, He's Doing a
Commercial

** Regulation & Competition **

Title: SBC Says It Had Little Choice But To Challenge Telecom Act
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: TelecomAct/Competition
Description: SBC had little choice but to file its federal suit challenging
the Telecom Act, Senior Executive VP James Ellis told state regulators. At a
Washington meeting of NARUC, he said the company was losing customers to
competitors but unable to get into long distance to improve its competitive
position and uncertain as to why the FCC rejected its application in
Oklahoma. Although SBC also appealed the FCC's denial of its Section 271
application to the U.S. Appeals Court, D.C., it decided that wasn't enough
because "the best we could hope for was a remand," which would mean another
year's delay, Ellis said.

Title: America, the Global Telecom Laggard
Source: Wall Street Journal (A14)
http://wsj.com/
Author: Scott Blake Harris & Peter F. Cowhey
Issue: Competition
Description: When Congress passed the Telecommunications Act of 1996, its
aim was to open all U.S. communications markets to robust competition. U.S.
trade negotiators used that law to persuade the world that global
competition in telecom services was inevitable. They dared the world to join
the U.S. in creating a pro-competitive environment. And the world did: The World
Trade Organization brokered an accord based on the principles of the Telecom
Act that opened markets in 69 countries representing 80% of world telecom
revenues. Now, on the first anniversary of the WTO accord, Europe and Japan
are making significant progress toward opening their telecom markets. By
painful contrast, on the second anniversary of the Telecom Act, the U.S. is
not living up to its own rhetoric, goals or commitments.

Title: Ameritech Joins Two Other Bells In Seeking Exemptions For Data
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Regulation
Description: Ameritech became the third Bell company in recent weeks to ask
the FCC to ease regulation for its high-speed data networks to stimulate
development. Like U S West and Bell Atlantic, it invoked Section 706 of the
Telecom Act, which directs the Commission to promote the roll out of
advanced technology. Each of the companies' petitions asks the FCC to exempt
new broadband networks from two restrictions generally placed on Bell
companies: (1) The ban on crossing LATA boundaries. (2) The requirement to
lease facilities to competitors at cost. Ameritech said its request differs
from the others in that it recommends that if the FCC requires a separate
subsidiary for data services, it should follow the less stringent model used
in 1984 to regulate GTE's then-ownership of Sprint.

** Long Distance **

Title: FCC Is Asked for Permission For Long-Distance Service
Source: Wall Street Journal (B4)
http://wsj.com/
Issue: Long Distance
Description: Ameritech asked the FCC to be allowed to offer long-distance
data services in
its five-state region. The Baby Bell is prohibited from offering
long-distance voice and data service in its home territory until it proves
to the FCC that it has opened up to competition. Ameritech is seeking
permission under a portion of the Telecom Act of 1996 that permits the FCC
to grant regulatory relief to carriers trying to deploy advanced data networks.

Title: Sprint Says It Passed On All Access Charge Reductions To Users
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Sprint says its rates fell last year by $500 million more than
access
charges came down. Responding to FCC Chairman Kennard's
request for proof that long distance companies passed on to consumers all
access charge reductions, Executive VP-Gen. Counsel Richard Devlin said the
company passed anticipated reductions on to consumers through a variety of
"promotions and new product offerings" throughout last year, rather than
suddenly cutting rates at the beginning of this year.

Title: McCain Calls On Kennard To List Requirements For Meeting 271 List
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Senate Committee Chairman John McCain said he would ask FCC
Chairman Kennard to disclose within two weeks the "minimum requirements" for
meeting each of the 124 checklist items in Section 271 of the Telecom Act.
He also said he soon would introduce legislation to address the failure of
Section 271 to bring about competition. Sen McCain said he was "profoundly
disappointed" with Kennard's recent statement that his staff cannot find
time to rule on every checklist item while also holding informal sessions
with Bell companies. He said that response to a query by Sen. Sam Brownback
was "unacceptable" and indicates that the Commission's decisions on Bell
company long distance applications "will continue to fail to inform carriers
about the minimum checklist requirements."

** Internet **

Title: Children's First Amendment Rights Lost in The Filtering Debate
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/cyberlaw/06law.html
Author: Carl S. Kaplan
Issue: First Amendment
Description: Behind the controversy over the use software filtering systems
to prevent children from accessing "indecent" material on the Internet in
schools and libraries is the question: "Do children have a First Amendment
right to obtain indecent materials?" Legal experts say that the answer to
this question is incredibly important because the stronger a child's right
to access a wide range of indecent materials, the more difficult it is for
the government to justify the use of filtering software in places where
children gather, like schools and children's computer terminals in libraries.

** Television **

Title: FCC To Back V-Chip
Source: Washington Post (G3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/06/195l-030698-idx.html
Author: Paul Farhi
Issue: V-Chip
Description: At a meeting next Thursday, the Federal Communications
Commission will give its formal approval to V-chip manufacturing standards
and grant official status to the "voluntary" program-rating system that is
currently being used by both broadcast and cable networks. However,
television sets equipped with the V-chip will not be available to consumers
until late 1999 due to long production lead times. Proponents of the chip
say that it will allow parents to control what programs enter their home. On
the other hand, critics maintain that by creating an "electronic babysitter"
the government undermines parents' ability to make specific choices for
their children and removes family opportunities for decision-making and
discussion about television.

Title: AT&T Is Seeking Cable-TV Alliance
Source: New York Times (C5)
http://www.nytimes.com/
Author: Bloomberg News
Issue: Cable
Description: AT&T executives said yesterday that they have been talking with
several cable-television companies about alliances which could help it offer
high speed Internet access and local service to customers using cable wires.

** InfoTech **

Title: Intel's Celeron Is A New bag of Chips
Source: Washington Post (G1,G2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/06/108l-030698-idx.html
Author: Elizabeth Corcoran
Issue: InfoTech
Description: On Wednesday, the Intel Corp. announced a new line of low-cost
computer chips, called "Celeron." Intel's upcoming line may denote a turning
point in the way computer manufacturers think about the computer chip --
abandoning the one-size fits all approach for a more customized product
designed to fit consumer's varied wants and needs. "The fundamental PC
served all uses," said Dennis Carter, an Intel vice president and director
of marketing. "Now we're seeing specialized devices. Even the desktop PC
isn't a single, homogeneous product." Intel developed this new brand of chip
in reaction to a slowing demand for PC's and an increase in the sales of
sub-$1,000 computers. Celeron will be the chip for low-cost computers. The
main difference between a Celeron and a Pentium II is that Pentium IIs have
more on-board memory and will be better at displaying 3-D graphics.

** Lifestyles! **

Title: Advertising: Bill Gates Is Tiger Woods? Well, He's Doing a Commercial
Source: New York Times (C5)
http://www.nytimes.com/library/tech/98/03/biztech/articles/06gates.html
Author: Stuart Elliott
Issue: Microsoft/Lifestyle
Description: "Bill Gates, you've just testified before a Senate committee,
paid tribute to the Wright brothers at the Time magazine 75th anniversary
party, presented the New York Public Library with a $640,000 grant and
visited a sixth-grade classroom. What are you going to do? No, William H.
Gates, the chairman of the Microsoft Corp., is not going to Disney World.
Instead, he is taking another prominent role in the consumer-celebrity
culture: that of pitchman." This weekend, Bill Gates will star in a
television and print campaign to endorse the Big Bertha line of over-sized
golf clubs. In the commercial Gates says: "I started to play golf about five
years ago. It was humbling. I really like it, but it's so frustrating!"
*********

Communications-related Headlines for 3/5/98

See the Circuits in New York Times -- section E of the paper of on the web
at http://www.nytimes.com/library/tech/yr/mo/circuits/index.html

Television
NTIA: President's Advisory Panel -- Digital Television
Current: FCC minimizes 'second-move' DTV headaches
Current: On-air PBS 'bug' aims to catch surfers, but catches flak
Current: Public TV's new Forum: its fifth center of power

Arts
NYT: Exhibit of Physical Objects Transcends Physical World

Internet
WSJ: Your Cyber Career: Using The Internet to Find a Job
NYT: Gore Letter Seems to Soften Stance On Encryption
NYT: 14 Are Charged With Taking Sports Bets Over the Internet
WP: 14 Charged in Internet Betting
WP: FTC Sues Online Marketer Over Alleged Spam Scam

Competition
FCC: The Telecommunications Act of 1996 --
Moving Toward Competition Under Section 271

Microsoft
WSJ: Washington Face-Off Dims Microsoft's Day
WSJ: Microsoft Weighs Killing 'Channels' On Web Browser
WP: Justice Dept. May Broaden Case Against Microsoft
NYT: Microsoft, Accused of Trademark Violations, Is Sued in Europe

Merger
WSJ: EU Commission Launches Probe Into WorldCom's MCI Purchase

Securities
NYT: Study Finds Rise in Computer Crime
WP: Hacker Hits NASA, Other PCs

** Television **

Title: President's Advisory Panel -- Digital Television
Source: NTIA
http://www.ntia.doc.gov/new.html
Issue: Digital TV
Description: A transcript of the March 2, 1998 meeting of the Advisory
Committee on the Public Interest Obligations of Digital Television
Broadcasters http://www.ntia.doc.gov/pubintadvcom/pubint.htm has been
posted. One can view the morning session transcript
http://www.ntia.doc.gov/pubintadvcom/marchmtg/transcript-am.htm or the
afternoon session transcript
http://www.ntia.doc.gov/pubintadvcom/marchmtg/transcript-pm.htm. [Or see a
summary of the meeting at http://www.benton.org/Policy/TV/meeting4.html.

Title: FCC minimizes 'second-move' DTV headaches
Source: Current (pg.1)
Issue: Digital TV
Description: In its third and probably final set of channel assignments for
digital TV, the FCC relieved a number of expected problems by adding five
channels -- 2 through 6 -- to the "core" bandwidth that will be devoted to
TV in the future. This, along with rules that permit stations to boost power
and use UHF beam-tilting antennas, is good news for public broadcasters,
said Marilyn
Mohrman-Gillis. The assignments will reduce from 55 to 38 the
number of public TV stations whose DTV channels will be outside the "core"
and would have to move their digital operations to another channel -- the
expensive and much detested "second move."

Title: On-air PBS 'bug' aims to catch surfers, but catches flak
Source: Current (p. 3)
Issue: Public Broadcasting
Description: PBS postponed plans to introduce a new on-air "bug" that
promotes the network's brand with history programs after station programmers
objected that they had not been consulted about the icons. During the annual
PBS programmers' conference last month, the issue came up in an open-mike
general session with PBS executives, demonstrating again stations'
sensitivities on the question of whose identity -- PBS's or the local
stations' -- should be imprinted most strongly in viewers' minds. While not
unanimous, sentiment against the icons seemed to be heightened by concerns
that PBS hadn't offered stations enough opportunities to weigh in on the new
"History's Best on PBS" bugs, which were to begin appearing periodically in
the lower right corner of the screen during last week's debut of "Reagan."

Title: Public TV's new Forum: its fifth center of power
Source: Current (pg. 17)
Issue: Public Television
Description: The Nat'l Forum for Public Television Executives convenes for
the first time March 25 in Washington, D.C. In creating the Forum, licensees
have
carefully crafted a decision-making process and structure that they can
trust to represent their own collective best interests. The Forum has the
opportunity to develop definitive positions on important issues and become a
powerful voice among those who control public TV's destiny. There is a
danger, however, that station execs, struggling to balance competing demands
on their time and attention, will fail to commit adequate attention and
resources to make the Forum work.

** Arts **

Title: Exhibit of Physical Objects Transcends Physical World
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/artsatlarge/05artsatlarg...
Author: Matthew Mirapaul
Issue: Arts
Description: On Wednesday, the Smithsonian Institution's Without Walls
program launched its prototype site for Revealing Things, "an online
exhibition that examines the cultural significance of everyday objects
through onscreen text, audio remembrances and music clips of the period."
"It's actually the best thing I've seen any museum working on for a while,"
said David Green, executive director of the National Initiative for a
Networked Cultural Heritage, a coalition based in Washington, DC. The
exhibit, created specifically for the Web, contains 54 common but
distinctive household items. "Very few of these things are on exhibit,"
Judith Gradwohl, director of the Smithsonian Without Walls program,
explained. "Most are from the backs of drawers. We actually went around and
asked curators, 'What do you have in your collection that's really terrific
but you haven't been able to show?'" The curators worked to develop
something that could not be translated into a physical exhibition space.
Gradwohl asserted, "If we can do it better in our halls, we shouldn't be
attempting it on the Web." Revealing Things is a prototype for a larger
exhibit to be placed online in 1999. To access the Revealing Things site,
click on: http://www.si.edu/revealingthings/

** Internet **

Title: Your Cyber Career: Using The Internet to Find a Job
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Rebecca Quick
Issue: Employment
Description: With a few keystrokes, you can beam your talents and background
to hundreds of potential employers. Job postings from around the globe are
available at your fingertips, and search engines will let you quickly scan
through thousands of postings to find those that match your skills. But once
you transmit your resume' into the digital realm, you quickly lose control
over which and how many people see that information. (www.monster.com;
www.careermosaic.com; www.collegegrad.com; www.hrsjob.com;
www.nationaladsearch.com)

Title: Gore Letter Seems to Soften Stance On Encryption
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/05encrypt.html
Author: Jeri Clausing
Issue: Encryption
Description: According to a letter sent by Vice President Al Gore to Senate
Democratic Leader Tom Dachle on Wednesday, the White House is backing off
from its push for national controls on computer encryption technology.
Instead of legislation, Gore said the administration wants to open
"intensive discussion that will apply the unparalleled expertise of U.S.
industry leaders in developing innovative solutions that support our
national goals." He added, "These and other discussions with industry can
also enable the administration to take additional steps to relax export
controls on encryption products." But Gore emphasized that the
administration "continues to believe in a balanced approach -- promoting the
growth of secure electronic commerce, protecting the public safety and
national security, ensuring privacy, and enabling continued technology
leadership by U.S. industry."

Title: 14 Are Charged With Taking Sports Bets Over the Internet
Source: New York Times (A1,A29)
http://www.nytimes.com/library/national/05gambling.html
Author: Benjamin Weiser
Issue: Content
Description: Authorities in Manhattan charged 14 owners and managers of
offshore companies yesterday with illegal use of interstate phone lines to
take online bets for Americans who placed wagers with the click of a mouse.
In the first federal prosecution case of sports gambling over the Internet,
the government said it would not charge any bettors who were using the sites
but that the prosecution should be viewed as a warning that such activity is
illegal. The case comes when the industry is seeing a tremendous amount of
growth. The government said that online sports betting had collected $600
million in gross revenues last year, up from approximately $60 million in
1996. "You're never going to see a shutdown," said Anthony Cabot, a gambling
law expert in Las Vegas. "What you're going to see is a number of people
being dissuaded from entering the industry and those who are in the industry
are going to take much greater precaution in hiding their ownership if they
are U.S. citizens."

Title: 14 Charged in Internet Betting
Source: Washington Post (E4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/05/176l-030598-idx.html
Author: Sharon Walsh
Issue: Content
Description: In New York yesterday, the owners and managers of six Internet
sports betting companies that operated offshore were charged in federal
court with illegally using the telephone and wires to transmit bets.
Although there have been a few state prosecutions, this is the first federal
case against businesses that allow illegal betting using the Internet, said
U.S. Attorney Mary Jo White. "The Internet is not an electronic sanctuary
for illegal betting," said U.S. Attorney General, Janet Reno. "It's a
federal crime to use the Internet to conduct betting operations...You can't
hid online and you can't hide offshore," Reno said.

Title: FTC Sues Online Marketer Over Alleged Spam Scam
Source: Washington Post (E2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/05/170l-030598-idx.html
Author: David Segal
Issue: Online Services
Description: The Federal Trade Commission sued an online marketing company,
Internet Business Broadcasting, based in Calif., yesterday for allegedly
defrauding customers in an advertising scam through unsolicited mass email.
The FTC's move marks the first time in history that agency officials have
targeted a producer of spam. "Right now the agency is in a wait-and-see mode
to see what the people in the industry and in privacy advocacy groups have
to say about it," said Eileen Harrington, the FTC's associate director of
marketing practices. "It's a hugely effective way to reach a lot of people
and it's not, per se, a bad thing." Executives of Internet Business
Broadcasting could not be reached yesterday for comment.

** Competition **

Title: The Telecommunications Act of 1996 --
Moving Toward Competition Under Section 271
Source: FCC
http://www.fcc.gov/Speeches/Kennard/Statements/stwek811.html
Author: Chairman William Kennard
Issue: Long Distance/Competition
Description: Chairman Kennard's 3/4/98 Statement "The Telecommunications Act
of 1996

Communications-related Headlines for 3/4/98

Universal Service
FCC: Universal Service Contribution Factors
FCC: RHCC Selects Price Waterhouse
NTIA: Progress Report: Assessing the Impact of Existing Universal
Service
Policies and Infrastructure Grants in Connecting Americans

Telephony
WP: AT&T Unveils Plans To Cut 'Slamming'
TelecomAM: MCI Tells Kennard It Has Passed On Access Savings and More
WSJ: Wireless Carriers Try New Hook to Win Customers

Regulation
TelecomAM: BellSouth Chairman Calls For 'Regulatory Moratorium' On Data
TelecomAM: Dingell Blasts Kennard On Telecom Act Implementation

Internet
NYT: Online University Set to Open Its (Virtual) Doors
WP: Ads To Target Encryption Curbs

Television
WSJ: For Texas Station, HDTV Means Hospital-Disturbing Television

Antitrust
WP: Competitors, Senators Assail Gates at Hearing
NYT: Gates, on Capitol Hill, Presents Case for an Unfettered Microsoft
WSJ: Microsoft's Chief Concedes Hardball Tactics
WSJ: A Master Programmer Updates His Code

Merger
WP: Wang Says He May Abandon Bid

** Universal Service **

Title: Universal Service Contribution Factors
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da980413.html
Issue: Universal Service
Description: Common Carrier Bureau Announces Proposed Second Quarter 1998
Universal Service Contribution Factors.

Title: RHCC Selects Price Waterhouse
Source: FCC
http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1998/rhcc.html
Issue: Universal Service
Description: The Rural Health Care Corporation (RHCC) announced today that
it has chosen Price Waterhouse, LLP to provide support services for the
universal service support program for rural health care providers.
Representatives of RHCC and Price Waterhouse stated that the user support
center which will answer questions and assist users in completing the
applications will be operational by March 15, 1998. The web site will become
operational by the end of March which will coincide with the date
applications can be accepted.

Title: Progress Report: Assessing the Impact of Existing Universal Service
Policies
and Infrastructure Grants in Connecting Americans
Source: NTIA
http://www.ntia.doc.gov/ntiahome/speeches/022598licam.htm
Author: Larry Irving
Issue: Universal Service
Description: "Access to a phone is a critical connection issue in its own
right -- and also links to the issue of access to advanced telecom and
information services. Economic development and personal advancement are
increasingly tied to one's ability to access the tools of the Information
Age. Clearly, information is increasingly impacting American lives, and many
will be favorably affected. However, there is a serious concern about how
others will fare -- the so-called "information poor." The Clinton
Administration has been working hard to close the digital divide between
information "haves" and "have nots." President Clinton and Vice President
Gore have spoken passionately about this, and have put their words into
action, literally pulling wires as part of NetDays as well as endorsing key
policy initiatives, such as the e-rate...."

** Telephony **

Title: AT&T Unveils Plans To Cut 'Slamming'
Source: Washington Post (C12,C22)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/04/030l-030498-idx.html
Author: Mike Mills
Issue: Long-Distance
Description: The AT&T Corp said yesterday that it has taken new measures to
curb unscrupulous marketers who will switch a consumer's long-distance
carrier without first obtaining the consumer's consent and it urged federal
regulators to clamp down even harder on this practice called "slamming." FCC
officials said that they had already planned to take action against this
practice by the end of the month. In response to growing complaints about
slamming, AT&T has pledged to: 1) increase monitoring of long-distance
companies that buy capacity on AT&T's lines and then resell it to consumers
-- and then charge those companies the cost of handling each valid customer
slamming complaint they cause; 2) stop using outside sales agents to sell AT&T
long-distance at public events -- where more than 60 percent of the slamming
complaints originate from; and 3) set up a new hotline to resolve customer
slamming complaints (1-800-538-5345).

Title: MCI Tells Kennard It Has Passed On Access Savings and More
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: MCI has passed along to consumers all access charge savings
resulting from the FCC's May orders and an extra $467 million, Senior VP
Jonathan Sallet said. In a letter to Kennard, who called on long distance
companies to prove they have passed on savings, Sallet said the company has
presented these figures in a "series of meetings" with the Commission, which
"never suggested to us that our numbers or our conclusions were in error."
Because Kennard questioned the long distance companies' compliance publicly,
MCI released financial details "for the first time in the public record."
According to his figures, MCI customers will save $1.22 billion from July
1997 to June 1998 through various price-cutting actions.

Title: Wireless Carriers Try New Hook to Win Customers
Source: Wall Street Journal (B4)
http://wsj.com/
Author: Elizabeth Jensen
Issue: Wireless/Competition
Description: As wireless competition grows with last year's aggressive entry
on PCS carriers into many markets, the scramble for customers has
intensified. With the easy targets -- large businesses and wealthy consumers
-- already picked off in the past decade, wireless companies are trolling
further downstream. To hook customers the carriers are selling prepaid
services, using slick come-ons, sophisticated technology and, in one market,
brightly colored phones aimed at children. Dennis Leibowitz, an analyst with
Donaldson, Lufkin & Jenrette, estimated that prepaid customers will make up
25% of all new wireless sign-ups in 1998. Prepaid customers can buy their
own phones or use old ones no longer linked to long-term contracts. To make
calls they purchase blocks of air time, which are activated by calling the
company.

** Regulation **

Title: BellSouth Chairman Calls For 'Regulatory Moratorium' On Data
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Regulation
Description: Telecom companies need a "regulatory moratorium" before
investing fully in broadband networks, BellSouth CEO Duane Ackerman said. He
said that phone companies, Internet companies and computer companies must
work together to convince regulators not to regulate data traffic. Of
BellSouth's $7-billion infrastructure investment this year, $3.4 billion
will be spent on local wireline networks and much less on new broadband
networks, Ackerman said. He said in addition to ceasing to regulate data,
regulators who want to see broadband investment increase should eliminate
rules that restrict carriers' ability to use their networks -- including
long distance data restrictions on Bell companies.

Title: Dingell Blasts Kennard On Telecom Act Implementation
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance/Competition/FCC
Description: The new FCC has wasted an opportunity to "unleash competition"
as it continues denying Bell company application to enter long distance,
Rep. John Dingell said. The House Commerce Committee's ranking Democrat also
slammed the Commission on its "extravagant" program to wire schools and
libraries to the Internet and its continued appeals of orders by the Eighth
U.S. Court of Appeals, St. Louis. He said the Commission "has chosen to not
only perpetuate, but actually increase bureaucracy in virtually every area
the Congress had intended to eliminate it."

** Internet **

Title: Online University Set to Open Its (Virtual) Doors
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/education/04education.html
Author: Pamela Mendels
Issue: Ed Tech
Description: Between 50 and 100 students are expected to enroll at Western
Governors University this spring, a school that has neither faculty or
campus. WGU is one of the boldest out of a number of distance learning
projects. The university will offer individual distance learning courses
prepared by more traditional educational ventures, its administrative
offices will be in Salt Lake City and academic offices in Denver. The people
behind the project are hoping that it will bring college-level course work,
workforce training and degrees to a wider range of people, while saving
state governments future education costs. "One of the major things is to
reach an audience that is generally unable to go to campuses to receive the
learning they seek," said Robert C. Albrecht, chief academic officer for
Western Governors Univ. "It is truly a distance learning project, to serve
those not served otherwise." The project is also raising questions as to
whether online distance learning is a sufficient replacement for the campus
variety. "There is no substitute for the student actually witnessing a mind
at work in a classroom," said Kenneth H. Ashworth, who retired last year as
commissioner of higher education in Texas after 21 years of service. "I have
a hard time seeing how that will occur over email."

Title: Ads To Target Encryption Curbs
Source: Washington Post (C15)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/04/049l-030498-idx.html
Author: Elizabeth Corcoran
Issue: Encryption
Description: An advertising campaign aimed at gathering public support for
easing federal regulations on technology that "curbs eavesdropping on
computer communications" will be announced today by a coalition of
high-technology companies and organizations. The newly formed coalition,
Americans for Computer Privacy, plans to launch print and broadcast ads to
convince people that the technology for locking up data and information,
encryption, is more than a computer industry issue. Sources said that the
Clinton administration hopes to reduce criticism of its current stance --
that is in favor of the restrictions -- by saying that it has no plans to
seek control of data-scrambling technology when it is used in the U.S. and
wants to work with the computer industry to find ways to balance privacy
concerns with the wants and needs of law enforcement.

** Television **

Title: For Texas Station, HDTV Means Hospital-Disturbing Television
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Evan Ramstad
Issue: HDTV
Description: Last Friday afternoon, WFAA-TV became the nation's first TV
station to begin permanent operation of a digital transmitter, venturing
into the new world of high-definition broadcasting. But just after the
transmission began, some of the 60 wireless heart monitors at Baylor
University Medical Center stopped sending data to nurses' stations. By late
Friday night, they thought they had the problem solved. But on Saturday, the
interference started all over again. It turns out that the unlicensed,
low-power transmitters in Baylor's heart monitors use portions of the radio
spectrum equivalent to TV channels 7 and 9. Steve Juett, the senior clinical
engineer at the hospital, called the station before it turned its digital
transmitter back on. WFAA sent 10 engineers to evaluate and hasn't
transmitted a digital signal since. Though the disruptions didn't lead to
any harm, WFAA says it will wait until the hospital's new system is working
before resuming its digital broadcasts.

** Antitrust **

Title: Competitors, Senators Assail Gates at Hearing
Source: Washington Post (A1,A10)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/04/109l-030498-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: At the end of a four-hour Judiciary Committee hearing
yesterday, the panel's chairman branded the Microsoft Corp. a monopoly and
warned that the software giant "will have to learn to live by the rules that
govern monopolies." The hearing consisted of equal parts political circus,
technology tutorial and legal interrogation, signaling a new, more public
examination of Microsoft's role in the economy. Scott McNealy, chief
executive of Sun Microsystems Inc., charged that Microsoft's Windows
operating-system software, which runs more than 90 percent of personal
computers, has a "monopoly [that] has led to fewer choices, raised costs and
stifled innovation." Microsoft Corp. Chairman, Bill Gates, maintained that
government innovation, not Microsoft's actions, threatens technological
innovation. "The software industry's success has not been driven by
government regulation but by freedom and the basic human desire to learn,
innovate and excel," said Gates. "Will the success of this industry
continue? I believe the question can be answered resoundingly 'yes' -- if
innovation is not restructured by government."

Title: Gates, on Capitol Hill, Presents Case for an Unfettered Microsoft
Source: New York Times (A1,D4)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/04microsoft.html
Author: Steve Lohr
Issue: Antitrust
Description: Yesterday, Bill Gates, chairman of the Microsoft Corp.,
delivered an energetic defense of his company's business practices before
Congress, portraying Microsoft as the standard bearer of the nation's
high-technology economy. In listing his industry's achievements, Gates cited
that "software makers had contributed $100 billion to the economy last year,
had created more than 2 million American jobs and had generated an awesome
rate of technological change." Gates did not hold back when it came to
commenting on where he thinks the real threat to the information age lies.
"Will the United States continue its breathtaking technological advances?"
Gates asked members of the Senate Judiciary Committee. "I believe the answer
is yes -- if innovation is not restricted by government." Gates made his
comments in a four-hour hearing that was established to explore, in the
words of Sen. Orrin Hatch (R-UT), the committee's chairman, "How market
power works in the software industry and whether Microsoft is abusing its
market power."

Title: Microsoft's Chief Concedes Hardball Tactics
Source: Wall Street Journal (B1)
http://wsj.com/
Author: John R. Wilke & David Bank
Issue: Antitrust
Description: Under withering grilling from Senate Judiciary Committee
Chairman Orrin Hatch, Bill Gates conceded that Microsoft restricts the
ability of its Internet partners to deal with its rivals. Mr. Hatch asked
repeatedly if his company's contracts with Internet service and content
providers excluded Netscape from working with these companies. The
exasperated billionaire finally conceded that the most prominent Web sites
featured in Microsoft's Internet software are barred from promoting Netscape
or being included in Netscape's rival listing. Such restrictions are
included in Microsoft's contracts, but they haven't been confirmed publicly
before by Microsoft.

Title: A Master Programmer Updates His Code
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Don Clark
Issue: Microsoft
Description: The embattled billionaire, Bill Gates, is everywhere, firing
back at his accusers yesterday on Capitol Hill, dispensing computers to
libraries in Alabama, etc. Public-relations specialists have exploited Mr.
Gates's star power to deliver a carefully crafted message -- that Microsoft
means innovation, and policymakers shouldn't do anything to thwart it. It's
a tough sell, because any hope of creating a kinder, gentler image for
America's richest man is periodically undermined by Mr. Gates himself.

** Merger **

Title: Wang Says He May Abandon Bid
Source: Washington Post (C12,C22)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/04/026l-030498-idx.html
Author: Mark Leibovich
Issue: Merger
Description: Charles Wang, chief executive of Computer Associates
International Inc. said yesterday that he will strongly consider withdrawing
the company's hostile takeover bid for Computer Sciences Corp. "I like to
win, but I'm not going to kill myself to win," said Wang. "If I can't get
the barriers to a deal down, of course I have to seriously consider my options."
*********

Communications-related Headlines for 3/3/98

Electronic Commerce
NYT: For Popular Categories, Online Sales Rise Sharply
NYT: Proposal Aims to Level Internet Playing Field
WSJ: Open Market Inc. Says It Will Receive Patents for
Internet-Commerce Software

Long-Distance
WSJ: Inside AT&T, A Crackdown On 'Slamming'

Antitrust
NYT: Microsoft Chairman Visits Senators on Eve of Testimony
WP: Gates Fears Curb on Innovation
WP: Microsoft In Senate's Focus
WSJ: Gates Answers To Criticism Of Microsoft
WSJ: Beware High-Tech Monopolies

Arts
NYT: Leading Art Site Suspended

Merger
NYT: Sale Weighed As Takeover Fight Goes On
NYT: Olivetti Sells Computer Services Unit to Wang

** Electronic Commerce **

Title: For Popular Categories, Online Sales Rise Sharply
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/03survey.html
Author: Lisa Napoli
Issue: Electronic Commerce
Description: The market research group ( at )plan,based in Stamford, CT, release
a report yesterday that shows 24 percent of active Internet users shop
online. The buying trends are up considerably from July 1997, when ( at )plan
released its first report. The five Categories that show the most
significant growth were: airline ticket reservations, up 301 percent; stocks
and mutual funds, up 291 percent; computer hardware, up 111 percent; car
rentals, up 105 percent; and books, up 94 percent. "People are getting
increasingly comfortable with shopping on the Internet," said Mark Wright,
chairman and chief executive of ( at )plan. "Industries are springing up
overnight. Consumer fraud fears on the Web are diminishing. Online consumers
are increasingly willing to conduct sizable dollar transactions on the Web."

Title: Proposal Aims to Level Internet Playing Field
Source: New York Times (CyberTimes/Eurobytes)
http://www.nytimes.com/library/tech/yr/mo/cyber/eurobytes/03euro.html
Author: Bruno Giussani
Issue: Electronic Commerce
Description: Although the information available through the Internet may be
vast, the user's "mind space" remains limited and quite unyielding. "Surveys
suggest that users routinely tend to enter the Internet through the same
portals and list no more than three or four dozen different Web sites on
their bookmarks files." Given this information, recent rumors and deals in
both the U.S. and Europe confirm a trend towards consolidating the Internet
market and the emergence of a short list of dominant players. Among the ones
at the top of the list are those that entered the field of electronic
commerce early in the game, like Amazon.com bookstore, and thus have already
established their cyber-brand name on the user's mental cyberspace map. The
list also includes large companies with brand recognition and enough
financial backing to push aside smaller would-be competitors. A recent study
on electronic trading, published by Demos, a liberal British think tank,
said that based on current trends, we are heading for "an inefficient online
marketplace where the big players will progressively maximize their
advantage." The study advocates the creation of "guaranteed electronic
markets" (GEMs), a new design for electronic commerce systems in which
"central computers guarantee each transaction by verifying that buyers and
sellers can trust each other." Wingham Rowan, the report's author, says that
without such a system, electronic markets "promise little not already
offered on the advertising cards displayed in corner-shop windows." Rowan
writes that such guaranteed markets "encourage both dependable sellers and
cooperative buyers, while penalizing the unreliable" and compensating the
victim.

Title: Open Market Inc. Says It Will Receive Patents for Internet-Commerce
Software
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Jon G. Auerbach
Issue: Internet Commerce
Description: Software maker Open Market plans to announce today it has won
three patents covering widely used technologies for Internet commerce and
marketing and it will seek licensing fees from companies using them, company
officials say. The most significant patent covers current Internet
technologies that let people pay for goods on-line and receive instant
credit-card verification. A Patent Office spokesman said the office doesn't
comment on possible patents, but confirmed its new patent announcements are
made on Tuesdays.

** Long-Distance **

Title: Inside AT&T, A Crackdown On 'Slamming'
Source: Wall Street Journal (B1)
http://wsj.com/
Author: John J. Keller
Issue: Long-Distance
Description: Stung by complaints that long-distance customers are routinely
"slammed" -- their accounts switched to a new provider without their
permission -- AT&T is taking action. It is cracking down on outside sales
agents that sell its long-distance service and will propose sweeping changes
to regulators for policing the industry. Slamming is rising at an alarming
rate, and it is bound to get worse as new markets such as local phone
service open to competition. The FCC, which is planning its own crackdown,
recorded over 44,000 slamming complaints against companies that sell
long-distance service in 1997. Concerned about blunting charges that AT&T is
a slammer itself, C. Michael Armstrong put two of AT&T's outside sales
agents under review for possible dismissal.

** Antitrust **

Title: Microsoft Chairman Visits Senators on Eve of Testimony
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/03microsoft.html
Author: Jeri Clausing
Issue: Antitrust
Description: Bill Gates, chairman of Microsoft, was in the nation's capitol
Monday denying that his company's decision to allow Internet service
providers to promote Internet browser software made by other companies was
prompted by the mood in Washington. Gates also said that the release of
Windows 98 would not be delayed by Justice Department investigators. In
comments made to reporters at the Capitol, Gates said: "There's really only
one principle at stake here, which is our ability to innovate in our
products. We've been in this business a long time, and that freedom to
innovate is very important to us. And so we are quite confident that that
principle, which has always been supported, that that principle will
prevail." Gates will appear before the Senate Judiciary Committee today for
their hearing on "Market Power and Structural Change in the Software Industry."

Title: Gates Fears Curb on Innovation
Source: Washington Post (A1,A10)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/03/047l-030398-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: Bill Gates, chairman of the Microsoft Corp., said yesterday
that if the Justice Department prevails in its efforts to block Microsoft's
ability to add new features to its windows software, the company "will be
replaced" as a leader in the field of technology industry. In an interview
with Washington Post editors and reporters, Gates said: "It's hard to say
that you're going to compromise on your ability to innovate in Windows. If I
can't put Internet support in Windows, then Windows will fail. If I can't
put speech recognition into Windows, Windows will fail. You know, our path
is to make Windows better. If we can't innovate our products, then you know
we will be replaced."

Title: Microsoft In Senate's Focus
Source: Washington Post (C1,C6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/03/109l-030398-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: Although the hearing before the Senate Judiciary Committee
today is titled "Market Power and Structural Change in the Software
Industry," it is really about one company, the Microsoft Corp. The hearing,
called by committee chairman Orrin G. Hatch (R-UT), is part of a longer-term
effort by Hatch to examine current antitrust laws, initially written in the
age of railroads and petroleum monopolies, to determine whether they are
still suited to today's fast-changing economic world. Experts say that "by
voicing public skepticism of Microsoft, Hatch can urge the department to
pursue a vigorous antitrust investigation." At the same time, by holding
public hearings, "Hatch and other senators can indicate to the department
that there is political support for what would be a highly controversial
case." William E. Kovacic, a law professor at George Mason Univ. and a
former Federal Trade Commission attorney, said that the hearing "has both
possibilities." Kovacic said,"No antitrust agency can afford to outrun a
political consensus, and to the extent that this kind of hearing signals the
willingness of Congress to accept further inquiry into the software
industry, that's an important signal for the Justice Department."

Title: Gates Answers To Criticism Of Microsoft
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John R. Wilke & David Bank
Issue: Antitrust
Description: Bill Gates plans to tell Congress that "it is not, nor has it
ever been, the intention of my company to turn the information superhighway
into a toll road." In response to the government's antitrust challenge and
criticism of Microsoft's tactics, Mr. Gates says in draft testimony that "it
is preposterous to think that any one company could ever control access to
the Internet." Microsoft also offered a key concession to its critics over
the weekend, changing contract terms with Internet service providers
world-wide that favor Microsoft's Internet software over that of rival
Netscape Comm. While Microsoft said the change would have little impact,
Internet companies say the contract terms have prompted a sharp drop in
their distribution of Netscape software.

Title: Beware High-Tech Monopolies
Source: Wall Street Journal (Op-eds, A18)
http://wsj.com/
Author: Orrin G. Hatch
Issue: Antitrust
Description: The future development of the Internet and the digital economy
will be shaped by structural changes in today's marketplace. With respect to
such technological paradigm shifts, healthy competition and effective
antitrust policy are particularly important. Many economists believe that a
positive "feedback cycle" in high-tech markets often allows individual
firms, such as Microsoft, Intel or Oracle, to garner unusually large market
shares. Such dominance reduces competition, typically leading to higher
prices, less innovation and fewer consumer choices.

** Arts **

Title: Leading Art Site Suspended
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/03adaweb.html
Author: Matthew Mirapaul
Issue: Arts
Description: The Web site which is one of the most premier destinations for
original Web-based art, ada'web, is being suspended. Co-founder, Benjamin
Weil, said the reason was that ada'web's publisher, Digital City Inc., had
canceled the Web site's financing. Skeptics had anticipate its closing since
the selling of ada'web's founding company, WP Studio, to Digital City, owned
primarily by America Online and the Tribune Company, 13 months ago. They
were unable to "reconcile the site's high-minded mission with the
mass-market orientation of other sites, and given the often- challenging
nature of the material, commercial sponsorship was not a likely option. Weil
agreed, saying: "For one year, it's been very difficult. We've been trying
to find ways for our corporate parent to understand that there was value in
this for them. It seemed like the message didn't really get through. And
then we tried to go non-profit to remain online, but we realized there was
very little funding available." Weil is now seeking a permanent home for
ada'web's archives so pre-published artwork can remain accessible.

** Merger **

Title: Sale Weighed As Takeover Fight Goes On
Source: New York Times (D1,D8)
http://www.nytimes.com/library/tech/98/03/biztech/articles/03merger.html
Author: Saul Hansell
Issue: Merger
Description: In further efforts to fend off a takeover by Computer
Associates International Inc., Computer Sciences Corp. said yesterday that
it would go as far as to sell itself to another company. In a filing with
the Securities and Exchange Commission, Computer Sciences said it expected
"to engage in discussions and may engage in negotiations with other parties
regarding strategic alternatives, including a possible merger of the company."

Title: Olivetti Sells Computer Services Unit to Wang
Source: New York Times (D4)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/03wang.html
Author: John Tagliabue
Issue: Merger/International
Description: At a joint news conference Monday, Olivetti SpA, the Italian
electronics company that has been selling its assets to focus on
telecommunications, announced that it will sell its computer services
subsidiary to Wang Laboratories Inc. for cash and securities totaling more
than $395 million. The subsidiary, Olsy SpA, designs and installs computer
systems for banks and public institutions across Europe.
*********

Communications-related Headlines for 3/2/98

Digital TV
NTIA: Meeting of the Advisory Committee on Public Interest
Obligations of Digital Television Broadcasters

Internet
NYT: FTC to Survey Web Sites on Privacy
NYT: In Online Debate, Candidates Focus on Issues Without Spin
WSJ: Hewlett Receives Approval to Export Encryption System
NYT: Library Suite Becomes Key Test Of Freedom to Use the Internet

Telephony
WSJ: Hughes's DirectTV Satellite Service Sets Marketing Deals
With Bell Atlantic, SBC
WP: Cutting the Ties That Bind the Web
WSJ: Belo's Dallas Station Is First to Transmit An HDTV Broadcast
NYT: Congress Moving Quickly to Try to Curb Cell Phone Abuses

Microsoft
WP: Microsoft to Allow Promotion of Other Firms' Web
Browsing Software
WSJ: Sun and Microsoft Battle In Court Over Java Software

** Digital TV **

Title: Meeting of the Advisory Committee on Public Interest Obligations
of Digital Television Broadcasters
Source: National Telecommunications and Information Administration (NTIA)
http://www.ntia.doc.gov/pubintadvcom/pubint.htm
Issue: Digital TV
Description: The Advisory Committee on Public Interest Obligations of
Digital Television Broadcasters, appointed by President Clinton, is meeting
in Los Angeles, CA today to study and recommend "what public interest
responsibilities should accompany the broadcasters' receipt of digital
television licenses. A RealAudio stream of today's meeting can be accessed
at: http://www.usc.edu/dept/annenberg/events/events.html

** Internet **

Title: FTC to Survey Web Sites on Privacy
Source: New York Times (CyberTimes 2/28/98)
http://www.nytimes.com/library/tech/98/02/cyber/articles/28ftc.html
Author: Jeri Clausing
Issue: Privacy
Description: The Federal Communications Commission will survey 1,200
commercial Web sites to analyze the "extent to which they are disclosing
policies for collecting and using personal information online" as part of
its privacy report to Congress, due on June 1. The FTC said Friday that they
will also determine how many sites offer the consumer a choice in how their
personal information is used. The report will be used in part to decide
whether industry self-regulation is doing enough to protect privacy online.

Title: Library Suite Becomes Key Test Of Freedom to Use the Internet
Source: New York Times (D1,D11)
http://www.nytimes.com/library/tech/98/03/biztech/articles/02library.html
Author: Amy Harmon
Issue: Regulation/Libraries
Description: A group of citizens have filed a suit against the Loudoun
County, VA public library board citing that their effort to bar obscene
material from the Internet accessed at the county's six library branches is
an unconstitutional form of government censorship. Patrons say that the
filtering program the board decided on, X-Stop, cannot tell the difference
between obscene material and other information about sexually-related topics
such as; sexual education, breast cancer, and gay and lesbian rights.
With more than three-quarters of the nation's libraries now connected to the
Internet, the case is expected to serve as a "litmus test of a library's
First Amendment obligation to its patrons."

Title: Hewlett Receives Approval to Export Encryption System
Source: Wall Street Journal (B10)
http://wsj.com/
Author: Don Clark & Nick Wingfield
Issue: Encryption
Description: Hewlett-Packard received U.S. gov't. approval to export a
strong encryption technology to customers in five countries, and announced a
partnership with IBM to share data-security technologies. The computer maker
said it received approval to export a version of its VerSecure technology
with an encryption key that is 128 bits in length, a level of
data-scrambling complexity that is considered virtually unbreakable. H-P's
technology must be activated for renewable one-year periods by designated
agencies in each country. Users aren't required to use a key recovery system
now, but foreign governments could do so in the future as users apply to
renew the encryption capability.

Title: In Online Debate, Candidates Focus on Issues Without Spin
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/02minnesota.html
Author: Rebecca Fairley Raney
Issue: Politics/Internet Use
Description: Candidates for Minnesota governor participated in an online
debate over the past couple of weeks where their challenge was to answer a
question in 300 words or less. Every other day for the past two weeks, 11 of
the 12 candidates responded to questions about the environment, education,
taxation and government involvement in the Internet. Voters could read the
candidates responses by accessing a Web site created by Minnesota
E-Democracy, a non-profit group that sponsored the online debate, or by
receiving them via email. One candidate, Jesse Ventura, said the cost of
online campaigning was right, "It's reaching a huge amount of people at a
very low price." Gordon Picket, treasurer for the Democratic-Farmer-Laborer
Party in rural northeastern Minnesota said that the online debate will help
his party decide who it will support. "In the past, we've looked for clear
positions from candidates. The online debate is adding a useful touch, It's
worth the candidates time." The only candidate who did not participate
announced his candidacy after the online debate had already started. You can
access Minnesota E-Democracy's Web site at:
http://www.e-democracy.org/1998/response1.html

** Telephony **

Title: Hughes's DirectTV Satellite Service Sets Marketing Deals With Bell
Atlantic, SBC
Source: Wall Street Journal (B10)
http://wsj.com/
Author: Frederic M. Biddle
Issue: DirectTV/Satellites
Description: Hughes Electronics plans to announce long-term marketing deals
with Bell Atlantic and SBC Comm. The agreements will partly replace an
ill-starred 1996 pact with AT&T that expired in Dec., though the new
partners won't take an equity stake in DirectTV. The outcome of the latest
alliance will be closely watched by industry players, including several
other Baby Bells that are talking to DirectTV about similar agreements.

Title: Cutting the Ties That Bind the Web
Source: Washington Post (Bus.Section pgs5,6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/02/004l-030298-idx.html
Author: Mike Mills
Issue: Wireless
Description: The cellular industry is promising to significantly improve its
networks over the next few years. Until recently, many consumers had not
given much thought to wireless machines and the data they translate. But as
wireless companies continue to improve upon the speed in which a user can
access and receive information, more Internet addicts are "going wireless"
over cellular phone networks. "What the consumer would like to see is
something that closely simulates what they see over their PC," said Dave
Oros, founder of Aether Technologies LLC a wireless data group. "Five years
from now I honestly believe that everybody who has a cell phone will have
some kind of wireless data application coming across it." Industry officials
agree, saying that outside of speed what the consumer really needs in order
to spur their interest is a new gadget, based on Web technology, that will
capture the buyer's imagination.

Title: Belo's Dallas Station Is First to Transmit An HDTV Broadcast
Source: Wall Street Journal (B3D)
http://wsj.com/
Issue: HDTV
Description: A.H. Belo Corp.'s Dallas TV station, WFAA, became the nation's
first to transmit high-definition digital signals on a nonexperimental
basis. The station turned on its digital transmitter at 2:17 p.m. Friday
with a test pattern. It then simulcast its regular programs, which aren't
produced in HDTV quality. Several times during the weekend the station's
new channel broke away from the programs of its analog channel to
show recorded high-definition programs. Few, if any, people saw the shows,
however. No major TV manufacturers are selling TVs that can pick up HDTV
signals until this fall. WFAA will place HDTV receivers in its station lobby
and at a shopping mall this week.

Title: Congress Moving Quickly to Try to Curb Cell Phone Abuses
Source: New York Times (D6)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/02cellphones....
Author: Jeri Clausing
Issue: Regulation
Description: Last week, Congress passed a bill to outlaw so-called cloning
devices, which make it possible for someone to charge phone calls to someone
else's account. This move was made in an effort to reduce cellular phone
fraud and eavesdropping.

** Microsoft **

Title: Microsoft to Allow Promotion of Other Firms' Web Browsing Software
Source: Washington Post (A8)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/02/064l-030298-idx.html
Author: Rajiv Chandrasekaran
Issue: Microsoft
Description: A Microsoft spokeswoman said yesterday that Microsoft has
decided to revise business deals it made with approximately 40 Internet
service providers to allow them to promote Internet browser software made by
other companies. This move comes at a time when U.S. and European officials
are continuing to look into Microsoft's business practices.

Title: Sun and Microsoft Battle In Court Over Java Software
Source: Wall Street Journal (B8)
http://wsj.com/
Issue: Legal Issues
Description: In San Jose, CA, Sun and Microsoft squared off in federal court
in a legal battle over the Java programming technology. A ruling on the most
major issues is expected to be delayed until at least September. Sun sued
Microsoft in October of this past year, claiming that Microsoft broke its
contract with Sun by releasing and incompatible version of the Java technology.
*********

Communications-related Headlines for 2/27/98

Education/Universal Service
NYT: Gore Defends Program to Wire Schools
NYT: Educators Lay Out Their Requirements for Technology

Campaign Finance Reform
NYT: Deadlock In Senate Blocks Campaign Finance Reform, All But
Killing It For Year
WP: Campaign Finance Bill Dies in Senate
WSJ: Impasse on Campaign-Finance Reform May Cause Sponsors to Change
Tactics

Internet
NYT: Clinton Continues to Stumble Over the 'E' Word (Encryption)
WSJ: Clinton, as Expected, Says He'll Support Moratorium on
Taxing Internet Sales
WSJ: AOL Taps Bloomberg For Business News
WSJ: Microsoft Plans to Cut Back Web Services

Infrastructure
WSJ: Interagency Center to Protect Networks From Hackers to
Be Unveiled by Reno

Telephony
WP: FCC Chief: Phone Giants OverCharging
Current: Clinton backs DTV transition subsidy

Philanthropy/Funding
Current: CPB Aids NPR Newsmags, Weekend and Native Programming
Current: ...and TV Docs on Broadway, Scottsboro, Bunche, Kalahari Life

Merger
WP: Computer Associated Says CSC Is 'Scaring Up Issues'

** Education/Universal Service **

Title: Gore Defends Program to Wire Schools
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/yr/mo/cyber/articles/27education.html
Author: Jeri Clausing
Issue: Universal Service
Description: In a speech made to the Connecting All Americans conference
yesterday, Vice President Al Gore warned Congressional members who have
suggested proposals to cut financing to help rural and poor schools connect
to the Internet that they were in for a tough fight. "There are those who
would pick the money from the pockets of our poorest schools," Gore said. "I
would like to say to them loudly and clearly: Your efforts to block the
e-rate is an effort to ration information and ration education and it would
darken the future of some of our brightest students. We will not let you do it."

Title: Educators Lay Out Their Requirements for Technology
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/yr/mo/cyber/articles/27education-sid...
Author: Pamela Mendels
Issue: Education
Description: Wednesday evening a panel of educators gathered for a
discussion titled, "Introducing New Media Educational Content; What, How and
Whose New Projects Get into Schools?," the event was sponsored by the New
York New Media Association's Education Special Interest Group. The educators
came to the consensus that the three items at the top of their list for
technology in the classroom would be: buildings that can support computers
and cabling, better educational software, and research proving that the
gadgetry really helps students learn. Panelist, Richard A. Schultz, manager
of Internet services and technical training for the New York City Board of
Education, told the audience, "I'm very excited about the new media...and I
think teachers are extremely excited about this." Nonetheless, he and other
panelists agreed, technology still has a way to go before it is accepted and
integrated into the classroom.

** Campaign Finance Reform **

Title: Deadlock In Senate Blocks Campaign Finance Reform, All But
Killing It For Year
Source: New York Times (A1,A22)
http://www.nytimes.com/library/politics/022798congress-campaign.html
Author: Alison Mitchell
Issue: Campaign Finance Reform
Description: Yesterday, the Senate basically buried all attempts at campaign
finance overhaul for at least another year. Despite a year-long
investigation into the campaign fundraising abuses of the 1996 election, the
advocates of revising the current law could not, in the end, generate enough
support to triumph over a Republican filibuster. "Instead, in successive
votes of 51-48 and 45-54 Thursday, the Senate first failed to end debate on
the main bipartisan overhaul bill and then on a competing proposal by
Republican majority leader Trent Lott aimed only at organized labor. It
takes 60 votes to cut off Senate debate and force a vote on legislation.
With the Senate at a stalemate, Lott, a primary foe of the overhaul effort,
removed both bills from the floor to clear the way for popular pork-barrel
legislation to allot transportation projects to the states. Having cycled
through familiar debate all week, no one objected." On the lawn of the
Capitol, after the final vote, Sen. John McCain (R-AZ), one of the major
architects of the campaign finance reform bill, promised to try again and
said, "We will not quit and we will prevail." (until the fall...same time,
same place)

Title: Campaign Finance Bill Dies in Senate
Source: Washington Post (A1,A17)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/27/084l-022798-idx.html
Author: Helen Dewar
Issue: Campaign Finance Reform
Description: Legislation to overhaul the country's scandal-ridden campaign
finance system was put to death yesterday in the Senate. The final vote took
with it any hope to enact major changes before November's elections. "The
bill is dead" and cannot be revised, said Sen Mitch McConnell (R-KY), a
leading foe of the legislation. "When you have 48 people dug in on an issue,
it will not pass." Several campaign finance measures are still pending in
the House. Nearly 190 members have already signed a discharge petition to
force a vote, which House Speaker Newt Gingrich (R-GA) has promised by the
end of March. If the House does approve a bill, it would still have to go
back and clear the 60-vote hurdle in the Senate. "Unfortunately, the Senate
has once again proven that the American people's cynicism about Congress's
ability to pass meaningful reform is well-founded," said Sen. Olympia Snowe
(R-ME), who played a key role in debate over the issue. "If not for the
unwillingness of the leadership to recognize the majority support in the
Senate and the nation, we might have prevailed," she added.

Title: Impasse on Campaign-Finance Reform May Cause Sponsors to Change Tactics
Source: Wall Street Journal (A20)
http://wsj.com/
Author: David Rogers
Issue: Campaign Finance Reform
Description: The Senate deadlocked again on overhauling campaign-finance
laws, an impasse that could force reformers to change tactics and seek
incremental changes over time. A slim majority supports a large-scale
overhaul, but in a final test yesterday, the reformers were still eight
votes short of the 60 needed to bring up such a bill for a vote. Common
Cause President Ann McBride, a leading reform advocate, denounced the
outcome as a "disaster for our democracy" but said she is now prepared to
consider scaled-back changes to build the case for broader ones later.

** Internet **

Title: Clinton Continues to Stumble Over the 'E' Word (Encryption)
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/27industry.html
Author: John Markoff
Issue: Encryption
Description: In San Francisco yesterday, President Clinton described the
economic impact of the Internet in "glowing terms" to an audience of
technology investors. But throughout his speech, he failed to touch on the
issue of encryption and the administration's policy on data scrambling -- an
issue that increasingly seems to matter most to Silicon Valley. Sharpening
an already intense debate is the fact that legislation that would restrict
unlimited use of encryption is about to be introduced on Capitol Hill. A
series of intense negotiations over a compromise have been taking place
behind the scenes, but the Clinton Administration and a small group of
high-technology executives suggest that there is no simple resolution in
sight. One Silicon Valley executive, who met with the president before his
speech on Thursday and asked not to be further identified, said, "To us this
is really important, but it's just an irritant to him. His basic message to
us was, 'Can we get this thing done?'"

Title: Clinton, as Expected, Says He'll Support Moratorium on
Taxing Internet Sales
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Jackie Calmes
Issue: Internet Commerce
Description: President Clinton sided with cyberspace retailers rather than
the nation's governors, endorsing a moratorium on new taxes on Internet
commerce. The president, as expected, told several hundred
technology-industry entrepreneurs at a conference here that he supports a
proposed Internet Tax Freedom Act in Congress for a moratorium of as long as
six years. But, reflecting the heat he's taking from governors, who just
last week took the opposite stand, Mr. Clinton called for "a national
dialogue" to find ways in the meantime for state and local governments to
collect sales taxes without choking the Internet's development.

Title: AOL Taps Bloomberg For Business News
Source: Wall Street Journal (B2)
http://wsj.com/
Issue: Online Services
Description: AOL said it will make Bloomberg LP one of the major sources of
business and market news in a three-year agreement. Terms weren't disclosed,
but executives familiar with the plan said Bloomberg is paying AOL several
million dollars in exchange for top billing in the personal-finance area of
the service. The move fill holes left by Dow Jones, which formerly had a
contract with AOL which called for the online service provider to pay the news
organization an undisclosed sum to provide AOL subscribers with financial news.

Title: Microsoft Plans to Cut Back Web Services
Source: Wall Street Journal (B6)
http://wsj.com/
Author: David Bank
Issue: Online Services
Description: Microsoft ended a once bally-hooed foray into entertainment
programming, announcing that the Microsoft network will eliminate production
of its remaining on-line "shows" and close World Wide Web sites dedicated to
movie and music reviews. The cutbacks at the on-line service continue the
software company's retreat from broad ambitions in the media business. The
latest cutbacks will eliminate 50 jobs in Microsoft's Interactive Media
Group, and follow layoffs at Microsoft's Sidewalk local activity guides and
the elimination of an on-line travel magazine called Mungo Park. Instead,
Microsoft is beefing up services such as free e-mail, search and directories
to other content on the Web.

** Infrastructure **

Title: Interagency Center to Protect Networks From Hackers to
Be Unveiled by Reno
Source: Wall Street Journal (B6)
http://wsj.com/
Author: John Simons
Issue: Infrastructure
Description: Attorney General Janet Reno is expected to unveil today an
interagency center designed to protect the nation's phone systems, electric
utilities and digital networks from cyber attacks. The unit will combine
several existing federal computer-security efforts into a single command
center here and will include computer experts from the Defense and Justice
departments as well as the Secret Service. The unit, which will also work
closely with private-sector technicians, will investigate misdeeds ranging
from digital break-ins at private-sector banks to thefts of data from
military networks. Ms. Reno plans to ask Congress for $64 million for fiscal
1999 to finance the unit, called the Nat'l Infrastructure Protection Center.

** Telephony **

Title: FCC Chief: Phone Giants OverCharging
Source: Washington Post (G1,G3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/27/062l-022798-idx.html
Author: Mike Mills
Issue: Long-Distance
Description: William E. Kennard, chairman of the Federal Communications
Commission, yesterday accused AT&T, MCI and Sprint of not passing onto
consumers savings from FCC reductions in the connection charges
long-distance companies pay to local phone companies and of overcharging
their customers for new fees ordered by the government last year. In a
letter to the three carriers, Kennard cited a "growing body of evidence that
the nation's largest long-distance companies are raising rates when their
costs of providing service are decreasing." The long-distance companies
responded angrily to Kennard's accusation. "Every MCI customer who has made
a long-distance call on Sundays in the last six months knows that
long-distance rates have gone down and access-charge savings have been
passed along," said MCI spokeswoman Jamie DePeau, referring to the company's
new 5-cent-per-minute rate on Sundays. Sprint spokeswoman Eileen Doherty
said, "Sprint's long-distance rates have historically fallen far more than
access charges." Kennard is under pressure from top Democratic and
Republican leaders, many whom blame the FCC for failing to ensure that
consumers phone bills would not increase as a result of the
Telecommunications Act of 1996.

Title: Clinton backs DTV transition subsidy
Source: Current, The Public Telecommunications Newspaper (Vol.XVII, No.3,p1)
Author: Steven Behrens
Issue: Digital TV
Description: The White House this month endorsed $450 million in federal
help for public broadcasting's transition to digital transmission --- a huge
commitment but less than the $1.7 billion estimated cost for the changeover.
Part of the sum amounts to a redirection of the longstanding Public
Telecommunications Facilities Program (PTFP). APTS, CPB, and PBS said
nevertheless that they were "delighted" with the support and called it an
"excellent start." However, the statement from NPR President Delano Lewis
said he was "concerned" that the sum fell short of the field's request. No
one knows what difference the lower subsidy will make in the digital
switch over, said APTS President David Brugger, but it may mean that some
public TV stations will lack digital production gear and will serve only as
"pass-through" outlets for national programs.

** Philanthropy/Funding **

Title: CPB Aids NPR Newsmags, Weekend and Native Programming
Source: Current, The Public Telecommunications Newspaper (Vol.XVII, No.3,p14)
Author: Jaqueline Conciatore
Issue: Philanthropy
Description: CPB's 1998 Radio Program Fund has awarded NPR about a
half-million dollars to strengthen its news-magazines and support "Morning
Edition's" shift to a 5 a.m. start. CPB announced the 22 awards, totaling
$4.5 million, Feb. 9. The fund made heavy investments in weekend shows and
Native American programming. NPR won $275,000 to help pay for Morning
Edition's January shift in start time from 6 a.m. to 5 a.m.

Title: ...and TV Docs on Broadway, Scottsboro, Bunche, Kalahari Life
Source: Current, The Public Telecommunications Newspaper (Vol.XVII, No.3,p14)
Author: Karen Everhart Bedford
Issue: Funding
Description: CPB's most recent Television Program Fund grants round provides
more than $4 million to 18 projects, including a number focused on education
or training. CPB is offering fellowships for producers to attend the Input
98 screening conference in Germany this May, backing outreach for a major
history miniseries, and providing completion funds for a videotape series on
math instruction. But most of the projects are intended for PBS distribution.

** Merger **

Title: Computer Associated Says CSC Is 'Scaring Up Issues'
Source: Washington Post (G1)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/27/058l-022798-idx.html
Author: Mark Leibovich
Issue: Merger
Description: Computer Associates International Inc. said yesterday that
officials at Computer Sciences Corp. are "scarring up issues that don't
exist" in their effort to block a hostile takeover by stating intelligence
community concerns over Computer Associates' partial foreign ownership.
"Computer Sciences is going to look under every stone, open any closet and
not leave any page unturned to discourage people from voting for this
offer," said Steve Woghin, CA's senior vice president and general counsel.
Computer Sciences' officials had no comment yesterday.
*********

Communications-related Headlines for 2/26/98

Arts
WP: NEA Grant Proposal Looks Like a Bomb(er)

Universal Service
TelecomAM: Commerce Secretary Urges Business Involvement
in Wiring Nation
NTIA: Connecting All Americans for the 21st Century

EdTech
NYT: ...With Liberty and Laptops For All?

Television/V-Chip
WP: Viewers' Mute Response

Internet
WP: White House Resists Taxes On Internet
NYT: Clinton: Don't Tax Internet Commerce
WSJ: Web Magazines' New Battle Cry: Charge!
NYT: Bloomberg to Supply AOL With On-Line Business Data
NYT: Bertelsmann Plans Website For Book Sales Via Internet
NYT: Amplifying Voices For Human Rights
NYT: Web TV Offers Cheap Web Access, But Consumers Are Wary

Jobs
NYT: High-Tech Executives Ask for Leeway on Foreign Workers

Newspapers
NYT: Circuits

Radio
WSJ: Korean War: Radio Is the Battleground of L.A. Broadcasters

** Arts **

Title: NEA Grant Proposal Looks Like a Bomb(er)
Source: Washington Post (A13)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/26/117l-022698-idx.html
Author: Rick Weiss
Issue: Arts
Description: The embattled National Endowment for the Arts has received a
unique proposal: the NEA Army has applied for a grant of $98 million -- the
agency's entire annual budget -- to model a section of the $2 billion B-2
Stealth bomber and carry the work around the country with a sign that simply
read "PRIORITIES." See The NEA Army: Practitioners of Stealth Art home page
http://weber.u.washington.edu/~hodin/NEAArmy/index.html]

** Universal Service **

Title: Commerce Secretary Urges Business Involvement in Wiring Nation
Source: Telecom AM -- 2/26/98
http://www.telecommunications.com/am/
Issue: Universal Service
Description: In remarks at a conference sponsored by the NTIA and PULP
http://www.ntia.doc.gov/connecting/index.html, Commerce Secretary William
Daley said that companies that help provide Internet access to poor and
rural areas will be "paid back through better workers and better customers."
FCC Commissioner Gloria Tristani told participants that the Commission will
soon begin a rulemaking to determine how to increase the availability of
advanced telecommunications capabilities.

Title: Connecting All Americans for the 21st Century
Source: NTIA
http://www.ntia.doc.gov/new.html
Issue: Universal Service
Description: "Connecting All Americans for the 21st Century:
Telecommunications Links in Low Income and Rural Communities. This summit,
sponsored by the Clinton Administration and PULP will address the immediate
opportunities to take full advantage of Telephone Lifeline, improve access
to new telecommunications technology for low income and rural communities,
and develop strategies to connect and network those communities." [Hear it
at http://www.ntia.doc.gov/connecting/index.html]

** EdTech **

Title: ...With Liberty and Laptops For All?
Source: New York Times (E14)
http://www.nytimes.com/library/tech/yr/mo/circuits/articles/26laptop.html
Author: Mike Romano
Issue: Education
Description: This March, New York City Community School District Six will
distribute 1,000 laptops to students in 26 middle schools, expanding the
pilot program, Learning With Laptops, that was started by the Microsoft
Corporation and Toshiba USA three years ago. The venture which arranges
services and lease agreements for schools now includes AT&T, Acer and
Compaq. The majority of schools that participate in the Learning With
Laptops program lease the basic laptop package to parents for three years at
about $58 a month. District Six will split this cost evenly with the
student's families, who get to keep the computers. At a recent Microsoft
promotional meeting in Seattle, teachers participating in the program
reported improved writing and time-management skills and better attendance
among students with laptops.

** Television/V-Chip **

Title: Viewers' Mute Response
Source: Washington Post (D1,D3-2/25/98)
http://www.washingtonpost.com/
Author: Paul Farhi
Issue: V-Chip
Description: Almost nothing has happened in the almost five months since the
television industry started offering on screen labels to warn viewers about
explicit program material. Given the public's underwhelming response, it is
difficult to say whether they are pleased with the new labels or mystified
by them. Bob Wright, chairman of NBC, said, "We get letters and calls about
everything that's on the air, but this has not been one of them." Jack
Valenti, head of the Motion Picture Association of America (MPAA) and who
oversaw the development of the movie and TV ratings said, "This has been a
non-event in TV homes. We were prepared for complaints but so far we haven't
received any." The MPAA has received about 800 letters, emails or phone
calls so far, but almost all of them are requesting a brochure on the new
system.

** Internet **

Title: White House Resists Taxes On Internet
Source: Washington Post (E1)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/26/161l-022698-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Regulation
Description: On Tuesday, the National Governors' Association passed a
resolution urging Congress to allow states to require Internet and
mail-order merchants to collect sales taxes for purchases that are made in
states where the merchants do not have a physical presence. But President
Clinton is backing legislation that would place a moratorium on new Internet
taxes. In an announcement expected today, the President will call for a
commission to develop a uniform approach to taxing Internet purchases.

Title: Clinton: Don't Tax Internet Commerce
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/national/022698clinton-internet.html
Author: John Markoff
Issue: Internet Commerce
Description: When President Clinton addresses a technology investor's
conference in
San Francisco today, he will speak against taxing Internet commerce, said an
administration official on Wednesday. The Administration's position, which
would bar state and local governments from enacting taxes on the Internet
until 2004, is in direct opposition to state governors. The Clinton
Administration believes that the Internet is "spurring the growth of new
industries" and that new taxes imposed by local jurisdictions would
undermine that economic impact.

Title: Web Magazines' New Battle Cry: Charge!
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Jared Sandberg
Issue: Internet Content
Description: Many online magazines are moving to charge subscribers for
their content. "Everybody wanted to get some market share by giving it away
for free," said the business development manager at the Economist. "But
that's not a model that can last forever. Their business models will evolve
into being paid." If this transition works, it could mark the opening of the
floodgates to pay-per services throughout the Internet and end the flow of
red ink that has sunk many websites. [So, how much are your Headlines worth?]

Title: Bloomberg to Supply AOL With On-Line Business Data
Source: New York Times (D2)
http://www.nytimes.com/library/tech/biztech/articles/26bloomberg.html
Author: Lisa Napoli
Issue: Online Services
Description: Bloomberg L.P. plans to announce today that it will work with
America Online as their feature provider of business information. AOL hopes
that the addition of Bloomberg will further increase confidence in the
online consumer markets that have yet to show a profit.

Title: Bertelsmann Plans Website For Book Sales Via Internet
Source: New York Times (D4)
http://www.nytimes.com/library/tech/biztech/articles/26book.html
Author: Doreen Carvajal
Issue: Internet Commerce/International
Description: Bertelsmann A.G., the German media conglomerate, announced
yesterday plans for a world-wide electronic bookstore. With Bertelsmann's
vast resources, publishing experience and international distribution
network, the bookstore has the potential to become the world's largest
online merchant of books.

Title: Amplifying Voices For Human Rights
Source: New York Times (E14)
http://www.nytimes.com/library/tech/yr/mo/circuits/articles/26justice.html
Author: Michel Marriott
Issue: Internet Content
Description: In an effort to turn the world's attention to the gross amounts
of human suffering that continue to take place around the planet, some human
rights groups are taking their information online. Focus on Justice, an
online human rights group, brings actual accounts of current situations to
people by using video-cassette recorders, television monitors and powerful
computers, much of it donated. "What this technology allows us to do is to
have an impact that no other human rights activists have ever had before,"
said Andrew Greenblatt, co-director of Focus on Justice, which was founded
last fall. Neil V. Getnick, a senior partner in the New York law firm of
Getnick & Getnick and a major supporter of Focus on Justice, said that the
Internet's power to aid human rights is its interactivity: "You can go to a
Web site, learn something about an issue, and then, if you are motivated
about it, immediately have an opportunity to send email to the right people."

Title: Web TV Offers Cheap Web Access, But Consumers Are Wary
Source: New York Times (E6)
http://www.nytimes.com/library/tech/yr/mo/circuits/articles/26webtv.html
Author: Michel Marriott
Issue: Web TV
Description: With almost every U.S. household having a television set,
unlike the only 4 out of 10 American households that have computers,
Microsoft, owner of WebTV Networks, thought that pumped-up TV sets would
quickly replace the home computer. A complete WEBTV system can be purchased
for less than $200 -- one-fifth the cost of a bargain PC. "But sales of
WebTV, the most established player in the Internet-television industry, have
proved modest." Retailers say sales are particularly disappointing when you
consider how quickly video-cassette recorders were adopted by the public.
Yet some people believe that the public will want access to the Internet via
their TV set as soon as they get use to the idea. Matthew York, who began
Smart TV, a magazine published six-times a year that focuses on the
dissolving edges that have separated computers and TV's for decades, said,
"I think the days of TV as we know them are numbered. A major paradigm
shift is taking place." Ahran Achachter, vice-president and general manager
of Datavision, a Fifth Avenue electronics superstore said, "This is not
something that can be thrown into the superstore to be bought like bread or
milk. That can be done when everyone understands what it does."

** Jobs **

Title: High-Tech Executives Ask for Leeway on Foreign Workers
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/yr/mo/cyber/articles/26workers.html
Author: Jeri Clausing
Issue: Jobs
Description: On Tuesday, high-tech executives came to Capitol Hill to plead
for the ability to bring more foreign workers into the United States in an
effort to fill the deficit of skilled workers available in this country. The
Clinton Administration indicated that it was willing to discuss increasing
the current cap, which now gives visas to up to 65,000 skilled foreign
workers a year. Several technology representatives said that they feared
some of the conditions that were proposed along with an increase would make
an already complex process only more burdensome.

** Newspapers **

Title: Circuits
Source: New York Times (Section E)
http://www.nytimes.com/library/tech/yr/mo/circuits/index.html
Issue: Technology
Description: The New York Times introduces a new section on Technology today
called "Circuits." The new section will come out every Thursday and focus on
the "personal side of digital technology in everyday life."

** Radio **

Title: Korean War: Radio Is the Battleground of L.A. Broadcasters
Source: Wall Street Journal
http://wsj.com/ (A1)
Author: John Emshwiller
Issue: Radio
Description: Los Angeles two Korean-language radio stations are fierce
rivals. Jea Min Chang runs FM Seoul and Janghee "Jay" Lee runs Radio Korea.
The two trade barbs that would make Ted Turner and Rupert Murdoch blush. But
their latest fight has started an international incident. While reporting
from Korea, Radio Korea's news director reported "word on the street" that
Mr. Chang's family-owned media empire was in dire financial straits and
would not be able to print its newspapers the next day. Mr. Chang complained
to Korean authorities and the news director was arrested and charged with
slander.
*********
Has anyone seen my missing spell checker?

Communications-related Headlines for 2/25/98

Universal Service
Telecom AM: Irving Defends FCC Universal Service Implementation

Internet
WP: Governors Support Internet Sales Tax
NYT: Fewer Bricks Mean Higher Returns At New Internet Banks

Telephony
Telecom AM: Tauzin To Join McCain In Seeking Elimination Of Exercise Tax

Merger
WSJ: Sinclair Broadcast Agrees to Acquire Sullivan for More Than
$800 Million

** Universal Service **

Title: Irving Defends FCC Universal Service Implementation
Source: Telecom AM---feb. 25, 1998
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The FCC's system of carrier contributions to the universal
service fund is not a tax, National Telecommunications & Infrastructure
Administration Administrator Larry Irving said. He said that the new
programs are built on "a concept that's existed for decades" and that he
hoped the session would help people "get out of the Washington mindset about
what all this means." For 70 years, "it has been this nation's policy to
give everyone basic telecom service," Irving said. He said that within the
next decade Internet access will be basic service, noting that beginning
this year it no longer will be possible to take the Graduate Record Exam
anywhere but online and students without computer and Internet experience
will be handicapped.

** Internet **

Title: Governors Support Internet Sales Tax
Source: Washington Post (C9,C12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/25/063l-022598-idx.html
Author: David S. Broder and Rajov Chandrasekaran
Issue: Internet Regulation
Description: As Internet shopping becomes more popular, many of the nation's
governors are concerned about losing billions of dollars in tax revenue. In
reaction to this, a resolution adopted at the final session of the National
Governor's Association urged Congress to expand the ability of states to tax
commerce on the Internet. The resolution would require Internet and
catalogue merchants to collect and pay sales taxes even if they do not have
a physical presence in the state to which the goods are being shipped.
Currently, such businesses are not required to collect state sales taxes in
any destination state in which they do not operate. In return, the governors
said they would support a prohibition on taxing Internet access, and they
pledged to try to organize the current mass-variances in local sales taxes
by enacting a single rate within each state. They contend that by creating
uniform rates it would be easier for Internet and mail-order merchants to
collect and remit the taxes.

Title: Fewer Bricks Mean Higher Returns At New Internet Banks
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/cyber/week/022598bank.html
Author: Sandeep Junnarkar
Issue: Internet Use
Description: A new breed of banking is emerging across the Internet. Instead
of providing Web access only as a convenience, these banks offer all of
their services on the Internet. They don't have any bank branches or
tellers, all checks are direct-deposited or mailed, and they are opened 24
hours-a-day, seven days-a-week for service at their Web sites. Because these
banks don't have the overhead expenses of running branch offices they are
able to parlay their reduced costs into better interest rates on money
market accounts, certificates of deposit, and they even offer interest on
checking accounts. Currently, only two such Internet banks are operational:
Security First Network Bank and Atlanta Internet Bank, but a third,
CompuBank, has been chartered.

** Telephony **

Title: Tauzin To Join McCain In Seeking Elimination Of Exercise Tax
Source: Telecom AM---feb. 25, 1998
http://www.telecommunications.com/am/
Issue: Telephony
Description: House Telecom Subcommittee Chairman Billy Tauzin is drafting
legislation to eliminate the 3 percent exercise tax on telecommunications.
His videotaped announcement was aired Feb. 24 at the Cellular
Telecommunications Industry Association (CTIA) convention in Washington DC,
one day after Senate Committee Chairman John McCain told the same audience
that he will propose similar legislation as soon as this week. Tauzin said
he is committed to "getting rid of the tax on the First Amendment."

** Merger **

Title: Sinclair Broadcast Agrees to Acquire Sullivan for More Than $800 Million
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Kyle Pope
Issue: Merger
Description: Sinclair Broadcast Group said it agreed to pay more than $800
million to buy Sullivan Broadcast Holdings, a closely held owner of 13
midsize TV stations. Sinclair will have 24 Fox affiliates after the Sullivan
deal is complete. Sinclair said the deal all but ends a TV expansion push
that has doubled the company's stable of TV stations during the past year.
Under terms of the transaction, Sinclair will pay Sullivan shareholders
about $840 million and will assume as much as $160 million in Sullivan debt.
Once the Sullivan deal closes this spring, Sinclair will own a total of 55
TV stations, up from 28 a year ago, covering about a quarter of all American
households.
*********

Communications-related Headlines for 2/24/98

Free Speech/First Amendment
WP: Ruling Limits Speech Rights for Teachers

Internet
TelecomAM: Internet Said To Help and Hurt Congress,
Consume Human Resources

Wireless
WSJ: Network Snags Imperil Sales Of Motorola
TelecomAM: McCain To Introduce Bill To Repeal Excise
Tax On Telecom Services
TelecomAM: Kennard Calls On Wireless Industry To Meet 'Club' Obligations

Cable
WSJ: TCI Selects At Home Corp. For Services

Regulation
NYT: European Study Paints Chilling Portrait of Technology's Uses

** Free Speech/First Amendment **

Title: Ruling Limits Speech Rights for Teachers
Source: Washington Post (B3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/24/116l-022498-idx.html
Author: Brooke Masters
Issue: Free Speech/First Amendment
Description: The 4th U.S. Circuit Court ruled that a North Carolina school
board did not violate a school teacher's First Amendment rights when it
disciplined her for putting on a controversial play. In the majority opinion
the court found that school boards by definition have control over decisions
that involve cirriculum. "Someone must fix the cirriculum of any school. In
our opinion it is far better public policy...that the makeup of the
cirriculum be entrusted to local school authorities who are in some sense
responsible rather than to the teachers who would be responsible only to the
judges." The teacher picked the play "Independence" which is controversial
because of its portrayal of a "dysfunctional family, including promiscuity
and lesbianism."

** Internet **

Title: Internet Said To Help and Hurt Congress, Consume Human Resources
Source: Telecom AM---feb. 24, 1998
http://www.telecommunications.com/am/
Issue: Internet
Description: The Internet can help the gov't., lobbyists and public interest
groups, but can also pose serious dangers to the institution of the
Congress, speakers said at a conference in Washington. At "Lobbying and the
Internet," Howard Marlowe, head of the Marlowe & Company lobbying firm, said
Web sites he set up for clients have been useful and efficient in
communicating information. He said lobbyists can use the Internet to win
their legislative fights and advised that simple e-mail should not be
overlooked as a means of keeping interested Net users in touch with issues.

** Wireless **

Title: Network Snags Imperil Sales Of Motorola
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John J. Keller & Quentin Hardy
Issue: Networks/Wireless
Description: Motorola is struggling to correct defects in its
cellular-network equipment and software that are crippling its expansion
into new wireless systems and have already led one major customer to cancel
its order. Executives close to the company said PrimeCo Personal Comm. has
canceled its $500 million contract and will replace almost all its Motorola
gear with equipment and software from rival supplier Lucent Technologies.
Motorola's problems supplying systems for so-called personal communications
services could seriously damage its credibility as a leading provider of
network and software world-wide.

Title: McCain To Introduce Bill To Repeal Excise Tax On Telecom Services
Source: Telecom AM---feb. 24, 1998
http://www.telecommunications.com/am/
Issue: Wireless
Description: Senate Commerce Committee Chairman McCain will introduce a bill
"immediately" to repeal the three-percent excise tax on telecom services, he
said Feb. 23. Minutes before, the Cellular Telecommunications Industry
Assoc. President Thomas Wheeler had urged wireless carriers to detail the
costs of various taxes on bills so customers can know "what they're paying
for and why." McCain said state and local governments see the wireless
industry as "a cash cow." He said it should be protected from taxes to
sustain its growth. McCain added that he was "astounded" that the FCC
"resisted" attempts to detail taxes on phone bills.

Title: Kennard Calls On Wireless Industry To Meet 'Club' Obligations
Source: Telecom AM---feb. 24, 1998
http://www.telecommunications.com/am/
Issue: Wireless
Description: "Wireless has arrived" as a "full-fledged member of the telecom
club," said FCC Chairman Kennard. But as a club member, the industry has an
obligation to contribute to the universal service fund, meet E911 location
capability mandates and serve the disabled community. Kennard also said key
decisions are ahead for the industry on wireless tower siting,
interconnection and numbering. He acknowledged the different technical
issues that wireless carriers face, but said "911 calls must go through" and
called on the industry to develop callback and location capability before
the FCC's requirement goes into effect in 2001.

** Cable **

Title: TCI Selects At Home Corp. For Services
Source: Wall Street Journal (B8)
http://wsj.com/
Author: David Bank
Issue: Set-Top Boxes
Description: Tele-Communications Inc. selected At Home Corp. to provide
e-mail services to users of as many as 11 million new cable TV set-top
boxes, a potentially lucrative franchise as online advertising increases.
At Home will also help banks, travel companies and online service providers
develop software for TCI's new set-top boxes. The role will make At Home a
referee between Microsoft and Sun, which were earlier selected to provide
operating systems and other technology for the new boxes. The selection of
At Home is further evidence of the intention of cable operators to retain
control of technology in the new boxes.

** Regulation **

Title: European Study Paints Chilling Portrait of Technology's Uses
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/cyber/euro/022498euro.html
Author: Bruno Giussani
Issue: Technology Regulation
Description: A new study by the European Parliament titled "An Appraisal of
Technologies of Political Control" describes the ability of a massive
telecommunications interception network to tap into almost all international
telecommunications as well as parts of domestic phone traffic. According to
the study, written by Steve Wright, and analyst with the Omega Foundation, a
British human rights organization, on behalf of a research unit of the
European Parliament known as STOA (Scientific and Technological Operations
Assessment), the network "targets the telephone, fax and email messages of
private citizens, politicians, trade unionists and companies alike."
Apparently, the network, dubbed Echelon, is operated by intelligence
agencies without any mechanism of democratic control. According to the
report, many governments have spent huge sums of money over the past several
years to develop new technologies for their police and security forces.
While these technologies may be used for legitimate law enforcement purposes
and may be relatively harmless when accompanied by accountability mechanisms
and strong regulation, "without such democratic controls they provide
powerful tools of oppression," the report states. The fear is that with the
increased speed and complexity of technological innovation, controls of the
past are quickly weakening.
*********