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Communications-related Headlines for 2/6/98

FCC
FCC: FCC Staff Proposes 31 Proceedings As part or 1998 Biennial
Regulatory Review
NYT: FCC Rule Review Assailed By a New Republican Member

Microsoft/Antitrust
WSJ: Sen. Hatch Issues Warning Microsoft May Be Building 'Proprietary
Internet'
NYT: Microsoft Shifts Web Unit to Windows Group
NYT: Senator Warns of Microsoft Dominance

Internet
NYT: U.S. Puts Junk E-Mailers on Notice
WSJ: Group Plans Ad Campaign To Promote Encryption
WSJ: Don't Expect Your Secrets To Get Kept on the Internet

Telephony
WSJ: New Standard For Modems May Spur Sales

Corporate
NYT: A Reorganization Is Expected at America Online
WSJ: Tech Firms Study Host of Netscape Deals
NYT: New Funds Halted by MCI To Joint Venture in Mexico

Legal Issues
NYT: Reuters Consultant Seen Taking Large Amounts of Data

** FCC **

Title: FCC Staff Proposes 31 Proceedings As part or 1998 Biennial
Regulatory Review
Source: FCC
http://www.fcc.gov/Bureaus/Miscell...s/News_Releases/1998/nrmc8010.html
Author: Rosemary Kimball
Issue: FCC
Description: The Commission staff has released a list of 31 proposed
proceedings to be initiated as apart of the 1998 biennial regulatory review.
The review is aimed at eliminating or modifying regulations that are overly
burdensome or no longer serve the public interest. The list was compiled
following a broad, comprehensive internal review of all existing FCC
regulations and informal input from the industry and the public through
recently held forums with the practice groups of the Federal Comm. Bar
Assoc. The Commission will continue to solicit public input as the process
continues.

Title: FCC Rule Review Assailed By a New Republican Member
Source: New York Times (C2)
http://www.nytimes.com/yr/mo/day/news/financial/fcc-review.html
Author: Seth Schiesel
Issue: FCC
Description: Harold Furchtgott-Roth, a new member of the Republican minority
on the Federal Communications Commission and a former chief economist for
the Housing Commerce Committee, criticized the commission yesterday for
failing to review its telecommunications regulations adequately. The
Telecommunications Act of 1996 requires the commission to review all of its
telecommunications regulations every two years, beginning this year. The FCC
announced Thursday that it had completed an internal evaluation and proposed
altering or eliminating 31 rules that it deemed unnecessary or overly
burdensome. But Furchgott-Roth called the commission's efforts inadequate.
Referring to the section in the act that requires the review, he said, "I
don't think it's there just to do a paper shuffle. It's there for a purpose.
Aside from simple following the law because that's what we have to do, I
think there's a real public-policy reason for that section to be there. And
I'm afraid that if there's just a selective review of a few regulation we're
not following the letter or the spirit of the law." William Kennard, FCC
chairman, said, "This is the most comprehensive review ever conducted by the
FCC. The suggestion that we would take all of the rules that govern the
agency and put them on a table and invite the public in to tell us which
ones to do away with would be a very unproductive process." Furchtgott-Roth
said he was undecided on what official action to take, if any, if Kennard
refused to significantly broaden the review.

** Microsoft/Antitrust **

Title: Sen. Hatch Issues Warning Microsoft May Be Building 'Proprietary
Internet'
Source: Wall Street Journal (B15)
http://wsj.com/
Author: John R. Wilke & David Bank
Issue: Antitrust
Description: Senate Judiciary Committee Chairman Orrin Hatch warned that
Microsoft may be trying to build a "proprietary Internet," excluding
competitors, stifling innovation and ultimately leading to government
regulation of the global network. To forestall federal meddling akin to an
"Internet Commerce Commission," Sen. Hatch said tough scrutiny is needed
now. "Vigilant and effective antitrust enforcement today is preferable to
the heavy hand of government regulation of the Internet tomorrow."

Title: Microsoft Shifts Web Unit to Windows Group
Source: New York Times (C3)
http://www.nytimes.com/library/cyber/week/020698microsoft-side.html
Author: John Markoff
Issue: Antitrust/Corporate Retrenchment
Description: In a quiet reorganization, Microsoft yesterday moved the unit
that develops its Internet Explorer web browser into the business group that
develops and markets its Windows operating system. Analysts say that
irrespective of antitrust arguments, the move made sense from a business
standpoint. "Internet Explorer is an integrated product," said David
Readerman, a financial analyst at Nationsbank Montgomery Securities Inc.
"You better integrate the reporting responsibilities."

Title: Senator Warns of Microsoft Dominance
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/cyber/week/020698microsoft.html
Author: John Markoff
Issue: Antitrust
Description: Antitrust economists, legal experts and public officials
gathered yesterday at a conference titled "Competition, Convergence and
Microsoft Monopoly: The Future of the Digital Marketplace" to debate whether
government action is needed to rein in Microsoft. Senator Orrin Hatch, who
gave the morning address, talked about how aggressive antitrust enforcement
is crucial now to keep the corporate giant from taking over the Internet and
creating the need later for government regulation of the network. He said,
"I can assure you that if one company does exert such proprietary control
over the Internet, and the Internet does in fact become a critical
underlying medium for commerce and the dissemination of new and information,
rest assured that we will be hearing calls from all corners for the heavy
hand of government regulation -- for a new 'Internet Commerce Commission.'
It seems far better to have antitrust enforcement today than heavy-handed
regulation of the Internet tomorrow." The conference was sponsored by the
Progress and Freedom Foundation.

** Internet **

Title: U.S. Puts Junk E-Mailers on Notice
Source: New York Times
http://www.nytimes.com/library/cyber/week/020698spam.html
Author: Jeri Clausing
Issue: Internet Regulation
Description: The Federal Trade Commission and the U.S. Postal Inspection
Service said yesterday that they have put more than 1,000 junk emailers on
notice that the agencies are monitoring unsolicited email for fraudulent
schemes. The program is the latest in an aggressive attempt by the FTC to
protect the Internet from scams. "Fraud promoters should think twice before
plying their trade on the Internet," said Jodie Bernstein, Director of the
FTC's bureau of Consumer Protection. "First, the FTC is on the Internet beat
and will follow up with spam artists who don't clean up their
correspondence. Second, many consumers are already on to them -- they know
better than to believe promises from strangers."

Title: Group Plans Ad Campaign To Promote Encryption
Source: Wall Street Journal (B2)
http://wsj.com/
Issue: Encryption/Privacy
Description: A coalition of technology companies and political groups plans
to launch a splashy advertising campaign to promote the notion that some
things are best kept secret. The group, Americans for Computer Privacy,
wants to give the public a quick lesson on encryption -- the use of complex
codes to scramble messages like e-mail and cell-phone calls -- and has hired
Goddard-Claussen to produce ads that will air nationwide next month. The
coalition also opposes efforts by the FBI and other law-enforcement agencies
to require "backdoors" on all encryption software to help police track
criminals. Ed Gillespie, an aide to Rep. Dick Armey, said "people would be
up in arms if the government said you had to give the FBI your PIN number
just in case they had to get into your bank account."

Title: Don't Expect Your Secrets To Get Kept on the Internet
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Rebecca Quick
Issue: Privacy
Description: It turns out that some of the Internet's defining
characteristics -- high-tech tricks and search methods that make finding
info easy -- allow others in cyberspace to take a peek at your behavior. In
cyberspace, you may be posting notes to a few friends on an electronic
bulletin board, but even if the bulletin board is obscure, your message
could wind up archived forever in a search engine like Deja News, which
specializes in scanning bulletin boards and even allows you to look up all
the postings by one person. But some industry experts say the Internet isn't
to blame -- info ranging from credit card numbers to bank account balances
to mortgage info has always been vulnerable in the real world. But critics
point out that profit and privacy are two concepts that may not mix well in
the digital age. In the end, consumers are left questioning what reasonable
expectation of privacy they have in cyber space.

** Telephony **

Title: New Standard For Modems May Spur Sales
Source: Wall Street Journal (B15)
http://wsj.com/
Author: Frederick Rose
Issue: Telephony
Description: The Internat'l Telecom Union affirmed a standard for high-speed
computer modems, unleashing analysts' projections for big sales growth in
that market. The new standard sets a series of detailed protocols for
computer devices that transmit data over ordinary phone lines at close to
56,000 bits per second, or 56K. Analysts and market participants cheered the
standard-setting. Dataquest, Inc., a research organization, estimates that
manufacturers will ship 33 million so-called so-called 56K modems this year.
But problems remain as manufacturers wring out problems in making one
another's modems communicate. Senior analyst Lisa Pelgrim said, "It's going
to be a little messy, but we go through this with all new standards."

** Corporate **

Title: A Reorganization Is Expected at America Online
Source: New York Times (C1,C3)
http://www.nytimes.com/library/cyber/week/020698aol.html
Author: Saul Hansall
Issue: Corporate Rentrenchment
Description: America Online is expected to announce a reorganization next
week that will shift both the company's focus and executive power. The
reorganization would consolidate the power of Robert Pittman who currently
runs the company's other main division, AOL Networks. AOL Networks is
responsible for operating the company's core online services. With the
changes, he would also oversee the development of AOL's new online content,
an area that had been overseen by Ted Leonsis, the president of the AOL
Studios division. As part of its reorganization, the unit established to
nuture online programming would be dismantled, just a year and a half after
it was created.

Title: Tech Firms Study Host of Netscape Deals
Source: Wall Street Journal (B15)
http://wsj.com/
Author: Kara Swisher & Nick Wingfield
Issue: Mergers
Description: Netscape is focusing on other deals involving its World Wide
Web site and software businesses. The Internet pioneer is seeking to bolster
its position in the wake of a withering assault by Microsoft. But
anti-Microsoft allies including Sun, Oracle, and IBM are believed to be more
likely to consider other ways to financially support Netscape's Web-browser
software. The most immediate possibility is a deal to exploit the value of
Netscape's popular Web site by selling the service outright or broadening
partnerships among companies that are already affiliated with it.

Title: New Funds Halted by MCI To Joint Venture in Mexico
Source: New York Times (C18)
http://www.nytimes.com/yr/mo/day/news/financial/t06pho.html
Author: Bloomberg News
Issue: Corporate Retrenchment/International
Description: "MCI announced yesterday that it had halted plans to invest a
further $900 million in Avantel, its long-distance venture in Mexico,
declaring that current regulations made it difficult to earn a profit. MCI
and its partner in Avantel, Grupo Financiero Banamex-Accival, have already
invested $900 million in the venture which competes with the former state
monopoly, Telefonos de Mexico, or Telmex, in the $4.5 billion Mexican
long-distance market. MCI said that regulations required Avantel to pay 70
percent of its revenue to Telmex to use Telmex's network. Mexican regulators
fixed the subsidy in 1996 to protect Telmex from an expected onslaught of
international carriers seeking to enter the Mexican long-distance market."

** Legal Issues **

Title: Reuters Consultant Seen Taking Large Amounts of Data
Source: New York Times (C5)
http://www.nytimes.com/library/cyber/week/020698reuters.html
Author: Kurt Eichenwald
Issue: Legal Issues
Description: Yesterday, people briefed on the case of Reuters Holding PLC to
steal information from Bloomberg LP, said that a Manhattan computer
consultant was monitored downloading hundreds of screens of proprietary
Bloomberg data during one-day periods. The amount of information said to be
downloaded by the consultant, from Cyberspace Research Associates Inc.,
significantly exceeded the amount downloaded by other Bloomberg customers.
Bloomberg executives were said to have debated shutting down the consultants
terminal but were persuaded by law-enforcement officials to keep it active
in order for the investigation to continue.
*********
And we are outta here. Have a great weekend -- see you Monday.

Communications-related Headlines for 2/5/98

Telephony
FCC: Commission Affirms Key Provisions of LMDS Second Report & Order,
Paving Way for Auction
WSJ: Mexican Regulatory Fight Spurs MCI Pullback
WSJ: BellSouth Corp. Set Back In Long Distance Strategy

Internet
NYT: Judge To Decide Legality of Net Registration Fees
WSJ: Internet Address-Rerouting Incident Raises Concern
Over Control of System
NYT: Clinton Aide Stands Behind Net Founder Who Altered Network

Corporate
WSJ: Netscape Mulls Sale of Whole Or Part of Firm
WSJ: Microsoft Partners in 'Active Desktop' Are Subpoenaed
in U.S. Antitrust Probe
WP: Primus to Acquire Florida Phone Firm

Lifestyle
NYT: Making Computers Cute Enough To Wear
NYT: In Brussels, Gates Takes a Pie in the Face

** Telephony **

Title: Commission Affirms Key Provisions of LMDS Second Report & Order,
Paving Way for Auction
Source: FCC
http://www.fcc.gov/Bureaus/Wireless/News_Releases/1998/nrw18002.html
Author: Elizabeth Kyle
Issue: Wireless
Description: Today the Commission generally affirmed key provisions of the
Local Multipoint Distribution Service (LMDS) service rules that it adopted
in March 1997. The action paves the way for the auctioning and licensing of
LMDS, a fixed, broadband point-to-multipoint wireless service that has
significant potential in offering a broad range of one-way and two-way
voice, video, and data service capabilities, and a substantial amount of
capacity that is larger than currently available wireless services.

Title: Mexican Regulatory Fight Spurs MCI Pullback
Source: Wall Street Journal (A17)
http://wsj.com/
Author: Craig Torres
Issue: Long Distance
Description: MCI has shelved plans for some $900 million in additional
investment in its Mexican long-distance joint venture, Avantel SA, saying
weak regulation of former monopoly Telefonos de Mexico SA has severely
dimmed the outlook for Avantel to compete profitably. MCI's decision comes
after only a year of competition against Telmex. The U.S. carrier's pullback
is a dangerous sign for Mexico, which is trying to encourage large
direct-foreign-investment projects to create skilled jobs and help the
country finance a deficit in its trade accounts.

Title: BellSouth Corp. Set Back In Long Distance Strategy
Source: Wall Street Journal (B6)
http://wsj.com/
Issue: Long Distance
Description: The FCC rejected BellSouth's application to sell long-distance
service in Louisiana. The FCC called the application "indistinguishable"
from its earlier, rejected application to provide long distance in S.
Carolina. The FCC said it turned down the application because the Bells
haven't opened their local networks to competition as required by law. FCC
Chairman Kennard said that "while BellSouth continues to make progress
toward opening its local market to competition, the commission was compelled
by law to deny" the application because the company hasn't yet gone far enough.

** Internet **

Title: Judge To Decide Legality of Net Registration Fees
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/cyber/week/020598domain-side.html
Author: Jeri Clausing
Issue: Internet Regulation
Description: Judge Thomas Hogan of federal district court in Washington has
frozen the governments $50 million Internet infrastructure development fund
while he decides if the domain registration fee that finances it is legal.
Judge Hogan said that plaintiffs in a class-action lawsuit "have made a
significant showing that the [fund] is an illegal tax." William Bode, a
lawyer for the plaintiffs, said yesterday that he plans to also ask the
court to require Network Solutions Inc. (NSF) to refund the profits it has
made as the sole registrar of top-level domains. "Federal law prohibits
independent executive agencies like the NSF from collecting fees that exceed
the cost of administering the service they are providing," Bode said. "The
same argument applies to fees that NSI charges over and above its cost of
doing business."

Title: Internet Address-Rerouting Incident Raises Concern Over Control of
System
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Rebecca Quick
Issue: Internet Regulation
Description: A recent incident in which one Internet official took control
of most of the global network's address system has renewed concern about the
casual manner in which the Internet is run. The rerouting coincided with the
release of a Clinton administration plan that would dilute the power of Jon
Postel, who operates the address system under a government contract that he
stands to lose. Mr. Postel called the incident a test of the system and
denied he meant any harm. No Internet traffic was disrupted, but that did
little to mollify companies that use the network or oversee its high-speed
arteries. Some say it appeared that Mr. Postel was, in effect, trying to
hijack the Internet.

Title: Clinton Aide Stands Behind Net Founder Who Altered Network
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/cyber/week/020598domain.html
Author: Jeri Clausing
Issue: Internet Regulation
Description: Last week, Jon Postal, a founding father of the World Wide Web
who runs the computer that assigns the addresses behind Internet domains,
alarmed the Internet world by redirecting at least half of the 13 root
servers that run the Internet away from the main root, known as "the dot" or
A server, to the B server that he administers at the Univ. of S. Calif.
under a Defense Dept. contract. The test drew speculation that the network
was being hijacked because it came at the same time Ira C. Magaziner,
President Clinton's top Internet advisor, was releasing his controversial
proposal for moving oversight of the Internet away from government and to a
private system. In response to Postal's rerouting of the Internet, Magaziner
said that the test was poorly timed and would not be repeated. "I admire and
trust this man, I don't have any reason to question his motives or
observations. He has been a tremendous asset to the Internet. If he did
something whose timing was a mistake, I sure would be one to cut him a lot
of slack."

** Corporate **

Title: Netscape Mulls Sale of Whole Or Part of Firm
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Kara Swisher & Don Clark
Issue: Corporate Retrenchment
Description: Netscape is holding "serious discussions" with AOL, Sun,
Oracle, and IBM about strategic investments in Netscape or purchasing the
entire company. AOL, for example, has discussed the possibility of either
taking over or buying Netscape's popular World Wide Web site, they said.
Although no deal is imminent, the discussions illustrate the severity of
Netscape's problems, and a recognition that it may need outside help in
overcoming them.

Title: Microsoft Partners in 'Active Desktop' Are Subpoenaed in U.S.
Antitrust Probe
Source: Wall Street Journal (B6)
http://wsj.com/
Author: John R. Wilke & David Bank
Issue: Antitrust
Description: The Justice Dept. issued new subpoenas in its antitrust probe
of Microsoft that focus on exclusive deals the software giant may have cut
with entertainment and information publishers on the Internet. The
department is seeking documents from Microsoft media partners that are
carried on the "Active Desktop," a feature of Microsoft's IE 4.0 software.
The Active Desktop will play an even bigger role in Windows 98. As a part of
their licensing of Windows to computer makers, Microsoft requires licensees
to display the desktop screen with the dozen media partners Microsoft has
selected. The Active Channel strategy may be seen by the Justice Dept. as a
form of tying -- using Microsoft's Windows monopoly as leverage in new markets.

Title: Primus to Acquire Florida Phone Firm
Source: Washington Post (E5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/05/184l-020598-idx.html
Author: Mike Mills
Issue: Merger
Description: Primus Telecommunications Group Inc., the Vienna-based
international long-distance company, announced yesterday that it will buy
TresCom International Inc., of Fort Lauderdale, FL, for $125 million. "The
merger provides Primus entry into Caribbean and South American markets,
rounding out our presence in every major region of the world and making
Primus the carrier with the broadest coverage among our peer group," said K.
Pul Singh, Primus's chairman and chief executive. TresCom owns switching
facilities in New York, Fort Lauderdale, and Puerto Rico, as well as
capacity on undersea fiber-optic cables reaching the Caribbean and South
America. Those assets will combine with Primus Telecommunications Group's 11
switches in the U.S., Canada, Australia and Britain and soon two more in
Germany and Japan.

** Lifestyle **

Title: Making Computers Cute Enough To Wear
Source: New York Times (C1,C4)
http://www.nytimes.com/library/cyber/week/020598ive.html
Author: John Markoff
Issue: Lifestyle/Technology
Description: Computer designer, Jonathon Ive, is interested in creating
computers based on what he calls "emotional human forms." Ive's has little
good to say about today's computers. To him, the majority of personal
computers are sad, chunky, gray boxes. "The curse of computing is that it's
generic," he said with a sigh. But Jonathon Ive, director of the industrial
design studio at Apple Computer, has an upbeat vision for a new generation
of machines. The designs he and his designers are working on have more in
common with Swatch or Nike than Dell or IBM. Ive's is obsessed with
designing machines that evoke more human reactions than "the
pocket-protector litany of bits and bytes and MIPS and megahertz." The new
machines, though still in the experimentation phase, are Ive's way of
struggling with what the television has done to the modern home. "For many
homes the television has replaced the hearth," he said, and the television,
when it's turned off, is a dead black hole. Ive does not want to see the
same thing happen with the computer. With the computer replacing the
television in many homes, Ive and his team are working to design machines
that work and blend into its surroundings in a living space and that allow
its user choice in deciding where they want to log on. People who have had a
look at some of the newly designed machines say they appear "organic and
integrated." One woman's initial reaction to a portable computer that looks
like a sleek appointment book was that she wanted to lick the translucent
green case.

Title: In Brussels, Gates Takes a Pie in the Face
Source: New York Times (D11) / Washington Post (B3)
http://www.nytimes.com/yr/mo/day/news/financial/gates-pie.html
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/05/158l-020598-idx.html
Author: Reuters / Ann Gerhart and Annie Groer
Issue: Lifestyle
Description: William H. Gates, chairman of the Microsoft Corp., was hit in
the face with a cream pie last night as he arrived in Brussels for a meeting
with Belgian business and government leaders. Organizers of the visit said
that five people, equipped with a large stock of pies, appeared to be
involved in the incident. The organized "pieing" was the work of Noel Godin,
a Belgian who has made a lucrative business and name for himself by hurling
custard pies into the faces of the rich and famous. "That was a victory for
us," said Godin who had the pleasure of landing a pie directly onto Gate's
face. "We will continue to send our burlesque statements." Erin Brewer, a
company spokeswoman said Mr. Gates was "surprised and disappointed" but
unhurt by the attack. Ms. Brewer said she did not believe that Microsoft or
Mr. Gates would press charges.
*********

Communications-related Headlines for 2/4/98

Internet
NYT: Netscape Tries a Nonprofit Approach to Profits
WSJ: Idaho Tribe Uses Loophole to Put Gaming on Web

Merger
NYT: Lycos Buys Tripod for $58 Million

Technology
NYT: IBM and Digital to Report on New Super-Chips

** Internet **

Title: Netscape Tries a Nonprofit Approach to Profits
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/cyber/week/020498netscape.html
Author: Peter Wayner
Issue: Online Services
Description: Netscape's decision to give the source code of its browser away
free has raised eyebrows and prompted cheers throughout the Internet. The
radical move surprised many because most software companies guard source
code much the same way that restaurants protect their secret recipes.
Releasing the source code makes Netscape's Web browser more attractive for
adept programmers because they can customize the product for themselves,
their companies and their friends, but it also brings new problems for
managing the source code and generating revenue.

Title: Idaho Tribe Uses Loophole to Put Gaming on Web
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Thomas E. Weber
Issue: Internet Regulation
Description: The Coeur d'Alene, an Indian tribe in Idaho, believes it has
found a legal loophole to offer a $1 million lottery on the Internet, but
opponents are rallying to get the Web site shut down. Missouri Attorney
General Jay Nixon, who has filed a lawsuit against the tribe, said, "They're
trying to beat the system...it's wrong, it's illegal and we're going to
fight it." The fight is looming as a key case as gambling creeps onto the
World Wide Web. So far, Internet wagering operations have been relegated to
shady-sounding offshore locales. The few U.S.-based ventures that tried to
make a go of it were quickly driven off. But the Coeur D'Alenes are relying
on the same legal foundation that has spawned an explosion of traditional
casinos on tribal land across the U.S. If the Coeur d'Alenes succeed on the
Internet, "I'm sure other tribes would take a look at it," says Shannon
Bybee, executive director of the International Gaming Institute at the Univ.
of Nevada.

** Merger **

Title: Lycos Buys Tripod for $58 Million
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/020498lycos.html
Author: Bloomberg
Issue: Merger
Description: Lycos Inc. announced yesterday that it has purchased Tripod
Inc., based in Williamstown, MA, for $58 million in stock. The acquisition
of Tripod, a Web site that offers members free publishing tools to create
their own Web sites and content on topics, will add an online community to
Lycos' Internet directory service. Bob Davis, Lycos chief executive, said in
a statement, "This new-generation online service is a single place where all
users can communicate, network, play and interact within communities that
meet customers' interests as well as access the most popular free Internet
services today."

** Technology **

Title: IBM and Digital to Report on New Super-Chips
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/020498chip.html
Author: John Markoff
Issue: Technology
Description: At the International Solid State Circuits Conference in San
Francisco today, both IBM and Digital Equipment Corp. will present technical
papers describing experimental chips that operate at more than one billion
cycles a second. The so-called gegahertz speed will run at three times the
speed of today's most powerful personal-computer chips. The chips are not
expected to hit the market until after the turn of the century.
*********

Communications-related Headlines for 2/3/98

Telephony
WSJ: Sprint PCS' Subscriber Count Near One Million, at High End of
Estimates

Antitrust/Microsoft
WP: Ruling Halts 'Master' In Microsoft Case
WSJ: Subpoenas Issued in Probe Of Microsoft
WSJ: Microsoft Plans New First Page On the Internet

Internet
WP: Judge Freezes Internet 'Preservation' Fund

Legal Issues
WSJ: Bell Atlantic's Dispute With Ex-Agent CTC Now May Go to Trial
NYT: Prosecutors Study Computer Company in Reuters Case

Universal Service
FCC: Appointment to the Federal-State Joint Board on Universal Service

Funding
WP: Clinton Asks Big Increases for Science, Technology Research
WP: Clinton Seeks More Arts Funds

** Telephony **

Title: Sprint PCS' Subscriber Count Near One Million, at High End of Estimates
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Elizabeth Jensen
Issue: Wireless
Description: Sprint PCS has signed up nearly one million subscribers for its
digital wireless phone service, presenting a formidable challenge to
entrenched players such as AT&T. Sprint PCS is the highest-profile new
wireless company to be launched in the past year and is building the largest
national system to rival AT&T's. But Sprint watchers have been frustrated by
the company's refusal to release any data until now. For example, the
company said it will announce that its average monthly revenue per
subscriber in 1997 was about $64. While that tracks the average PCS company,
it is well ahead of the average cellular provider.

** Antitrust/Microsoft **

Title: Ruling Halts 'Master' In Microsoft Case
Source: Washington Post (D1,D4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/03/112l-020398-idx.html
Author: Rajiv Chandrasekaran and Elizabeth Corcoran
Issue: Antitrust
Description: A federal appeals court ruled yesterday that Lawrence Lessig, a
Harvard professor and technology expert, appointed "special master" to study
technical issues in the Justice Department's lawsuit against Microsoft, must
discontinue his work until a three-judge panel reviews his role in the case
more carefully. The ruling was delivered by the U.S. Court of Appeals for
the District of Columbia one day after Microsoft filed its latest legal
brief to dismiss Professor Lessig.

Title: Subpoenas Issued in Probe Of Microsoft
Source: Wall Street Journal (A3)
http://wsj.com/
Author: David Bank
Issue: Antitrust
Description: Attorney generals from 11 states issued new subpoenas in their
antitrust probe of Microsoft, broadening their investigation to include the
software giant's marketing practices for Windows 98. But as the states'
investigation widened, Microsoft won a round in the federal case brought by
the Justice Dept. The U.S. Court of Appeals for D.C. granted the company's
motion to suspend the inquiry of a special master who was appointed by a
lower court to sort out the legal and technical issues in the case.
Microsoft objects to the appointment of Professor Lawrence Lessig on
procedural grounds and claimed that Mr. Lessig was biased against the company.

Title: Microsoft Plans New First Page On the Internet
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Kara Swisher
Issue: Microsoft
Description: Microsoft is developing a new home page, code-named
"start.com," that will be launched in late summer or early fall. Its
features will include many of its Web-based properties, free e-mail, a
search engine called Yukon and an ability for users to personalize the page
to include stock quotes, weather and news of their choice. Microsoft
officials said the new site isn't meant to replace its Web-based proprietary
on-line service called the Microsoft Network. Instead, it is entering the
fast-paced race to become a premiere destination spot on the Web, by better
integrating its offerings.

** Internet **

Title: Judge Freezes Internet 'Preservation' Fund
Source: Washington Post (A6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/03/077l-020398-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Regulation
Description: Yesterday, a federal judge issued a preliminary injunction
preventing the U.S. government from "tapping a $46 million fund set up to
promote the Internet's 'preservation and enhancement.'" The judge said that
the endowment is generated by user surcharges that likely constitute an
illegal tax. The decision could make it difficult for the Clinton
administration to pay for the development of a "next generation" Internet
this year.

** Legal Issues **

Title: Bell Atlantic's Dispute With Ex-Agent CTC Now May Go to Trial
Source: Wall Street Journal (B7)
http://wsj.com/
Issue: Competition/Legal Issues
Description: A dispute between Bell Atlantic and its former agent CTC Comm.
may go to trial following a federal court ruling. Judge Wood of the U.S.
District Court in Manhattan issue a temporary restraining order against CTC,
preventing the company from selling local telephone services to customers it
previously served as a Bell Atlantic agent. CTC recently began acting as a
reseller of local phone service, competing with its former partner, Bell
Atlantic. In a lawsuit filed last month, CTC charged Bell Atlantic with
failing to open its markets to local competition. Bell Atlantic, in a news
release, hailed the court's ruling as a victory, saying, "Bell Atlantic is
likely to succeed on the merits of its claim that CTC violated the
non-compete clause in its sales agency contract with Bell Atlantic."

Title: Prosecutors Study Computer Company in Reuters Case
Source: New York Times (D6)
http://www.nytimes.com/library/cyber/week/020398reuters.html
Author: Kurt Eichenwald
Issue: Legal Issues
Description: Federal prosecutors are investigating the relationship between
Reuters Holdings PLC and Cyberspace Research Associates Inc., a Manhattan
based company. They believe that Cyberspace Research may have been
commissioned to steal information electronically from Bloomberg LP, one of
Reuters competitors. Prosecutors are said to believe that the New York
company was working with Reuters Analystics Inc. to assist it in obtaining
information about Bloomberg's operating code. Robert Crooke, a spokesman for
Reuters America, and Chris Taylor, a spokeswoman for Bloomberg, both
declined to comment.

** Universal Service **

Title: Appointment to the Federal-State Joint Board on Universal Service
Source: FCC
http://www.fcc.gov
Issue: Universal Service
Description: Commissioner Gloria Tristani has been appointed to the
Federal-State Joint Board on Universal Service by FCC Chairman, William Kennard.

** Funding **

Title: Clinton Asks Big Increases for Science, Technology Research
Source: Washington Post (A9)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/03/088l-020398-idx.html
Author: Curt Suplee
Issue: Funding/Science & Technology
Description: The Clinton Administration has proposed a sizable increase in
funding for science and technology in fiscal 1999. "Overall, the budget
requests $78.2 billion -- a comparatively modest expansion of about $2
million, or 3 percent above 1998 levels -- for military and civilian
research programs combined." But other agencies, including the Department of
Energy, National Institutes of Health and the National Science Foundation,
are also up for substantial increases, reflecting the administrations
support of energy efficiency, medical research, climate studies and science
education.

Title: Clinton Seeks More Arts Funds
Source: Washington Post (B1,B5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/03/013l-020398-idx.html
Author: Jacqueline Trescott
Issue: Arts
Description: Yesterday, President Clinton asked Capitol Hill lawmakers for a
substantial increase in the fiscal 1999 budget for the National Endowment
for the Arts. The president proposed $136 million, matching the strategy he
used last year when he requested the same amount. In his proposal, Clinton
also requested modest increases for other federal cultural agencies.
*********

Communications-related Headlines for 2/2/98

Internet
NYT: U.S. Plans on Internet Names Lacks Support From All Users
WP: The End of an Exclusive Domain
WSJ: Government Plan to Pull Out of Business Of Naming Internet
Addresses
Is Praised
NTIA:Commerce Department Releases proposal To Privatize Internet
Domain Registration NYT: Building 'Internet 2'

Telephony
WSJ: Phone-Industry Revolution Is Foreseen As Internet Poses Pricing
Challenges
FCC: Commission Proposes Streamlined Requirements For BOC Provision of
Information Services
Telecom Digest: Pay-Phone Calls to Get Up-Front Pricing

Television
B&C: FCC Delays DTV Decision
B&C: Digital TV Comes to Computers
B&C: DirecTV/Microsoft Internet Satellite Project in Limbo
B&C: Battle Lines Form Over Free Airtime

Microsoft/Antitrust
WSJ: A Judo Blow Against Microsoft
WSJ: Few Microsoft Foes Dare to Fight Firm in Washington

** Internet **

Title: U.S. Plans on Internet Names Lacks Support From All Users
Source: New York Times (D1,D5)
http://www.nytimes.com/library/cyber/week/020298domain.html
Author: Amy Harmon
Issue: Internet Regulation/Infrastructure
Description: The Clinton Administration released a proposal, developed by
Ira Magaziner, the Administration's top Internet advisor, Friday to
relinquish the Government's control of the Internet's address system to a
competitive market. The Administration is seeking to privatize a crucial
function of the expanding network and formalize a system that currently
relies largely on one company. The plan recommends the creation of a
not-for-profit corporation to direct the expansion of the Internet's domain
system. The corporation, to be based in the U.S. and run by a representative
group of the Internet's users, would also oversee the core computers that
keep track of who lives where in cyberspace. The overall goal is to lower
costs and broaden consumer choice.

Title: The End of an Exclusive Domain
Source: Washington Post (Bus 5,6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-02/02/003l-020298-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Regulation/Infrastructure
Description: Under a plan released Friday by the White House, firms besides
Network Solutions will be allowed to assign domains: .com, .org, and
.net. In addition, the administration plans to create five new, currently
unnamed, top-level domains. Network Solutions does not appear to be too
concerned with the announcement. Gabriel A. Battista, the company's chief
executive, commented that he thinks the competition is a good idea and will
expand Network Solutions business. After their contract with the National
Science Foundation formally ends in March, the company will continue their
monopoly for six more months while a nonprofit company is established to
supervise competition. Once that is completed, Network Solutions will
"continue to manage the database of addresses in its three existing domains,
allowing it to collect a small fee from other firms that want to sell the
.com, .org, and .net addresses." James J. Petit, an analyst with
Hambrecht & Quist in San Francisco said, "At the end of the day, meaningful
competition is probably at least a year out. And once it starts, they're
going to have a big benefit from being in the pole position."

Title: Government Plan to Pull Out of Business Of Naming Internet Addresses
Is Praised
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Rebecca Quick
Issue: Internet Domains
Description: Internet players who felt locked out of an earlier
industry-sponsored effort to control Internet addresses praised the Clinton
Administration's new plan to get the gov't. out of the process. A year ago,
the gov't. announced its intention to turn over control of the Internet
address system to the private sector. But when the administration released
its proposal, it had laid out no specific plans for how for how the
transition would occur. Internet users of all types have raised concern
about how the "domain-name" issue will be handled.

Title: Commerce Department Releases proposal To Privatize Internet Domain
Registration
Source: NTIA
http://www.ntia.doc.gov/new.html
Issue: Internet Regulation/Infrastructure
Description: The Commerce Department released a draft proposal Friday
"suggesting ways to improve the current management of Internet names and
addresses by establishing a private sector policy oversight body and
introducing competition into the domain name registration system." The DNS
Management Discussion Draft is available on the Commerce Dept.'s website at
http://www.ntia.doc.gov.

Title: Building 'Internet 2'
Source: New York Times (D3)
http://www.nytimes.com/library/cyber/week/020298internet.html
Author: Robyn Meredith
Issue: Internet Growth
Description: The University Corporation for Advanced Internet Development is
a nonprofit group that is trying to bring together academia, government and
industry to create Internet 2, as the project is called, and the programs
needed to operate it. Douglas E. Van Houweling, chief executive and
president of the UCAID and one of the creators of the original Internet,
plans to add high-speed lanes to the clogged electronic highway that today's
Internet has become. He envisions Internet 2 as a way for high-end users to
quickly and reliably move huge amounts of data across phone, cable,
satellite or other yet-to-be invented networks. "Today's Internet is like a
single-lane highway with unlimited access points and no traffic control,"
said Mr. Van Howling. "There will never be a red light that will come on and
say you can't use it -- when the traffic gets heavy, things slow down. What
we're trying to do is build a multilane highway. On each of these special
lanes, we can regulate the amount of traffic to guarantee performance, we'll
still have the far-right lane, where everybody can get on." Those involved
in the project say that broad commercial use of Internet 2 is about four
years away. Mr. Van Houweling expects that once Internet 2 is up and
running, discussions for the creation of Internet 3 will begin.

** Telephony **

Title: Phone-Industry Revolution Is Foreseen As Internet Poses Pricing
Challenges
Source: Wall Street Journal (B11B)
http://wsj.com/
Author: Douglas Lavin
Issue: Telephony
Description: The idea that phone networks must evolve into something that
resembles the Internet is something of a revolution in an industry that has
long resisted the Internet. Telephony via the Internet is only the forefront
of a technological revolution that is dramatically reducing the cost of
standard voice telephone services and will eventually remake the telephone
industry. The pricing revolution would come from a broad restructuring of
telephone networks around the world so that they more closely resemble the
Internet. But this could also lead to the early death of the nascent
Internet telephone industry if that can no longer undercut higher-priced
phone networks.

Title: Commission Proposes Streamlined Requirements For BOC Provision of
Information Services
Source: FCC
http://www.fcc.gov
Issue: Competition
Description: The FCC proposed to streamline the safeguards under which the
Bell Operating Companies provide information (or enhanced) services, such as
voice mail and electronic messaging. The safeguards exist to encourage BOC
provision of new technologies and innovative information services, while
ensuring that the BOCs make their networks available for use by competitive
providers of such services. The proposal aims to strike a balance between
the Commission's goal of deregulating where competition has developed, and
its recognition that until full competition is realized, certain safeguards
may still be necessary.

Title: Pay-Phone Calls to Get Up-Front Pricing
Source: Telecom Digest---feb. 2, 1998
http://editor( at )telecom-digest.org/
Author: Tad Cook (tad( at )ssc.com)
Issue: Telephone Rates
Description: Federal phone regulators, in an effort to drive down the cost
of long-distance calls placed from hotels and pay phones, decided to make
telephone companies tell consumers up front how much such calls will cost.
The new rule involves long-distance calls made from a non-residential phone,
where a customer must dial 0 plus the area code and number to make a call.
Charges for these "0-plus" calls are the third-largest source of consumer
complaints to the FCC.

** Television **

Title: FCC Delays DTV Decision
Source: Broadcasting&Cable (pg. 6)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Digital TV
Description: Commissioners had hoped to complete a revised plan for matching
each station with a channel for digital broadcasting, One of the questions
is about which channel will constitute the "core spectrum" into which all
broadcasters will be packed once the industry returns its analog channels to
the gov't. Another issue is whether expanding the core spectrum to 30 mhz
would cut into the revenue the government hopes to reap from its auction of
the returned channels.

Title: Digital TV Comes to Computers
Source: Broadcasting&Cable (pg. 79)
http://www.broadcastingcable.com/
Author: Harry A. Jessell
Issue: Digital TV
Description: Technicians at WETA-TV's offices flipped the switch on computer
with rabbit ears? Making it possible is a computer card slipped into the
back of the off-the-shelf computer alongside other more conventional
computer components. The card is a prototype DTV receiver built by Intel.
Equipped with the card and either rooftop or a set-top TV antenna, the
computer picked up the signal from WETA-TV's experimental DTV transmitter
four miles away and displays it on the computer monitor.

Title: DirecTV/Microsoft Internet Satellite Project in Limbo
Source: Broadcasting&Cable (pg. 82)
http://www.broadcastingcable.com/
Author: Richard Tedesco
Issue: Digital TV/Satellites
Description: One year after it was trumpeted as the next great combination
of data and TV service, the future of DirecTV's PCTV project with Microsoft
is uncertain and DirecTV is working with another software maker and shifting
emphasis to data delivered to TV. The project is in transition, largely
prompted by delays in the release of Microsoft's Windows 98 system, which
will support the PCTV platform for the data delivery scheme.

Title: Battle Lines Form Over Free Airtime
Source: Broadcasting&Cable (pg. 6)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Media & Politics
Description: The day after the President said he would "formally" ask the
commission to move on a free or reduced-cost airtime plan for political
candidates, FCC Chairman Kennard said he plans to do just that. House
Telecom Subcommittee Chairman Billy Tauzin said the airtime plan would
constitute the worst start ever of any FCC commissioner. Kennard conceded
that the plan will call for state and federal candidates seeking access to
the airwaves. The plan won't apply to cable, but may apply to radio. Kennard
said, "It's clear that the campaign finance system is broken in this
country. I want the FCC to be part of the solution."

** Microsoft/Antitrust **

Title: A Judo Blow Against Microsoft
Source: Wall Street Journal (Op-eds, A22)
http://wsj.com/
Issue: Microsoft/Competition
Description: Netscape announced that it would reveal the source code of its
next-generation browser, Communicator 5.0, on the Internet. Netscape has not
only matched Microsoft, but has raised the stakes by allowing anyone with
the requisite skills to extend, modify, customize, and enhance the program.
What does Netscape hope to gain from this ploy? Well, Microsoft's strength
in providing a uniform operating environment can also be its weakness, one
that Netscape hopes to exploit by providing the opposite: diversity. In the
volatile Internet environment, an application that can mutate rapidly has a
big competitive advantage over an application that changes only when its
manufacturer issues a new release.

Title: Few Microsoft Foes Dare to Fight Firm in Washington
Source: Wall Street Journal (A24)
http://wsj.com/
Author: Michael Schroeder
Issue: Antitrust
Description: As the Justice Dept. has pressed its antitrust case against
Microsoft, two of Washington's best-known lobbying firms have been trying to
assemble a high-profile team of Microsoft rivals to wage open political war
on the software giant.But the campaign hasn't revved up, largely because
most competitors fear retaliation in the marketplace. Privately, some of the
anti-Microsoft lobbyists say they intend to soon unveil a coalition of at
least 10 companies willing to stand up to Microsoft. So far, the number is
only five, and has been tentatively called the Council for a Competitive
Electronic Marketplace.
*********

Communications-related Headlines for 1/30/98

Telecom Act of 1996 -- Two Years Later
NYT: Schools Can Begin to Apply for Internet Subsidies
FCC: 2nd Anniversary of the Telecommunications Act of 1996
and Priorities for 1998

Internet
WP: White House Favors Privatizing Key Tasks in Running Internet
NTIA: A Proposal to Improve the Technical Management of
Internet Names and Addresses

Telephony
WSJ: Protect Competition, Not Competitors
WSJ: AirTouch to But U S West Media Wireless Assets
WSJ: FCC Adopts Tougher Rules On Pay-Phone Disclosures
WP: Dealer Sues Cellular One Over Digital Service

The Media Will Eat Itself
NYT: Some Journalists Have Met the Enemy, and It Is Them
NYT: The Media in Trouble

Microsoft
WSJ: Microsoft Appeal Charges Judge Erred In Order Restricting Bundled
Software

Philanthropy
CoP: The Packard Way

** Telecom Act of 1996 -- Two Years Later **

Title: Schools Can Begin to Apply for Internet Subsidies
Source: New York Times
http://www.nytimes.com/library/cyber/week/013098education.html
Author: Pamela Mendels
Issue: EdTech/Universal Service
Description: "I am incredibly excited. You can feel, in the phone
conversations we've had, how important this is to schools and libraries out
there," said Ira Fishman, chief executive officer of the Schools and
Libraries Corporation (SLC). Beginning today, schools and libraries can
begin applying for discounts on telecommunications services through a
website run by SLC, a nonprofit organization that will administer the new
program for the Federal Communications Commission. "We know this is going to
generate increased access, especially in rural, low-income and hard-to-reach
communities," said Lynne E. Bradley, a lobbyist for the American Library
Association. But there are some critics: "You get back to the old adage of
'If something isn't of value to begin with then having it available at a
lower price doesn't necessarily make it a bargain,'" said William L.
Rukeyser, coordinator of Learning in the Real World, a Woodland, Ca.-based
organization advocating greater skepticism about use of computers in
teaching. [See
http://www.nytimes.com/library/cyber/week/012498education.html for a
related article on linking these discounts to content restrictions or
http://www.benton.org/Updates/summary.html#snl for a summary of the new
program.]

Title: 2nd Anniversary of the Telecommunications Act of 1996 and Priorities
for 1998
Source: FCC
http://www.fcc.gov/realaudio/index.html
Issue: Telecom Act of 1996
Description: Listen to Chairman Kennard's Press Conference About the Second
Anniversary of the Telecommunications Act of 1996 and Priorities for 1998 at
11:30 am Live via RealAudio from the FCC Internet Audio Broadcast Home Page

** Internet **

Title: White House Favors Privatizing Key Tasks in Running Internet
Source: Washington Post (A1)
http://www.washingtonpost.com/
Author: Rajiv Chandrasekaran
Issue: Internet Regulation
Description: The Clinton Administration will propose today that control of
some of the Internet's most crucial operations be transferred from federal
research agencies to the private sector over the next two years, according
to White House officials. The administration laid out a new structure for
the global computer network, which has become a fast-growing medium for
communication and commerce. Under the plan, the gov't.'s role in assigning
Internet addresses and maintaining the traffic-directing hardware at the
heart of the network would shift to a not-for-profit corporation. The
corporation would be run and funded by the businesses, people and
institutions that use the Internet.

Title: A Proposal to Improve the Technical Management of
Internet Names and Addresses
Source: NTIA
http://www.ntia.doc.gov/ntiahome/domainname/dnsdrft.htm
Issue: Internet Regulation/Infrastructure
Description: A proposed rule of the Department of Commerce. This same
document will be published in the Federal Register in the near future. While
the Department will accept comments on the paper starting today, the Federal
Register publication will establish the official deadline for the acceptance
of public comment on this proposed rule. Comments may be mailed to U.S.
Department of Commerce, NTIA/OIA, 14th and Constitution Avenue, N.W.,
Washington, D.C. 20230 or sent via electronic mail to dns( at )ntia.doc.gov.
Though it is not intended or expected, should any discrepancy occur between
the document set forth below and that published in the Federal Register, the
Federal Register publication controls. All comments received will be
considered exclusively in the context of issuing a final rule. The paper is
being made available through the Internet solely as a means to facilitate
the public's access to this document and to provide an additional means of
notifying the public of the solicitation of public comment on the proposed
rule.

** Telephony **

Title: Protect Competition, Not Competitors
Source: Wall Street Journal (Op-eds, A15)
http://wsj.com/
Issue: Competition
Description: The FCC recently found out that the cable rates of regulated
cable systems went up 8.5% during the 12 months ending this July 1 and for
unregulated systems by 9.6%. And indications are that the increases since
July 1 nave been even greater. For reasons that Prof. Tom Hazlett has been
setting forth, re-regulation of services, such as cable TV , is simply not a
sensible remedy. But, since some 22 other electric companies across the
country have embarked upon using their rights-of-way and fiber-optic
facilities both for their own internal operations and to compete with local
telephone and cable companies, there is good news for consumers concerning
competition.

Title: AirTouch to But U S West Media Wireless Assets
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Elizabeth Jensen & Leslie Cauley
Issue: Merger/Acquisition
Description: AirTouch Comm. agreed to acquire the domestic wireless
operations of U S West for stock valued at $4.3 billion. The agreement comes
six months after an earlier plan fell apart because of the elimination of a
federal tax loophole. Under the new agreement, AirTouch will pay more for
the U S West operations, but it will end up issuing fewer shares because its
stock price has improved substantially since the original plan. The
long-awaited agreement will make AirTouch the second-largest U.S. wireless
provider behind AT&T.

Title: FCC Adopts Tougher Rules On Pay-Phone Disclosures
Source: Wall Street Journal (B6)
http://wsj.com/
Issue: Long Distance/Telephone Rates
Description: The FCC adopted tougher rules to protect people from exorbitant
charges for making long-distance calls from pay phones. The rules require
all companies that provide service to pay phones, hotel phones and other
public phones to disclose price information to callers before calls are
connected. Callers aren't expected to be able to benefit from the new
price-disclosure rules until July, agency officials said.

Title: Long-Distance Pay Phone Rates Must Be Disclosed
Source: Washington Post (G1)
http://www.washingtonpost.com/
Author: Mike Mills
Issue: Telephone Rates
Description: The FCC required long-distance carriers, beginning July 1, to
notify pay telephone users of their rates before the call is connected. By
simply pressing a button, or staying on the line, callers will be able to
find out the total price of a phone call, including and surcharges. After
getting the information, callers could hang up without incurring any
charges. High prices for pay phone long-distance calls are among the FCC's
biggest source of complaints. The agency has cited complaints upwards of $5
per minute and higher (to WHERE?? - p.h.).

Title: Dealer Sues Cellular One Over Digital Service
Source: Washington Post (G3)
http://www.washingtonpost.com/
Author: Mike Mills
Issue: Legal Issues
Description: Cellular Concepts of Fairfax files a lawsuit accusing
Greenbelt-based Cellular One of "inducing" it and other dealers "under false
and fraudulent pretenses, representations and promises" into signing
exclusive agreements in November 1995 to carry only Cellular One-brand
wireless phones. The suit contends that Cellular One failed to deliver on a
promise to soon offer an advanced digital phone service that could compete
against long-time rival Bell Atlantic Mobile and newcomers, including Sprint
Spectrum, Nextel, and AT&T Wireless. Cellular One attorney Dan Foley said he
needed time to review the complaint. "I don't think the company has done
anything wrong," he said. "We have a good working relationship with our
dealers. We view them as partners in the provision of our product."

** The Media Will Eat Itself **

Title: Some Journalists Have Met the Enemy, and It Is Them
Source: New York Times (A14)
http://www.nytimes.com/library/politics/013098clinton-media.html
Author: Carey Goldberg
Issue: Journalism
Description: They did it after the OJ case, after Princess Di, now after the
latest round of scandal reporting the media is in "self-flagellation" mode.
Matt Drudge, who first reported Newsweek's scoop on Interngate, has become
the a punching bag for criticism: "You ought to have at least some standards
of decency and some standards of fairness! That's what I object to," said
Jack Nelson of the LA Times on CNN. The ombudsman of the Washington Post has
written that the message from readers is "Restrain yourself!" A CBS News
poll found that 62% of those polled thought that there was too much coverage
of the scandal.

Title: The Media in Trouble
Source: New York Times (A21)
http://www.nytimes.com/yr/mo/day/oped/30bake.html
Author: Russell Baker
Issue: Journalism
Description: In op-ed, Baker takes a look at the coverage of the scandal at
the White House and how the media covered it. If the Right thinks the media
is a bunch of liberals that are soft on the Democrats and now Mrs. Clinton
accuses the press of being part of a right-wing plot to destroy the
President, where are journalists to find shelter? "In the conviction that
they are fulfilling a constitutional obligation to serve the public, that's
where. This they often do, and well. Other times, especially when sex and
celebrity murder are their subjects, a shudder of disgust may run through
the public, set off by suspicion that it is not being served, but having the
creepiest side its nature exploited for profit."

** Microsoft **

Title: Microsoft Appeal Charges Judge Erred In Order Restricting Bundled
Software
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Michael Schroeder & John R. Wilke
Issue: Antitrust
Description: Microsoft said U.S. District Judge Thomas Jackson failed to
give the company a chance to respond, as required under the law, before
ordering it to stop forcing computer makers to bundle its Internet browser
software with its widely used Windows 95. Judge Jackson issued the
preliminary injunction last month to maintain "the status quo" in the market
while a court-appointed expert gathers more evidence. Microsoft called the
injunction "unorthodox" because it went beyond what was sought by Justice
Dept. antitrust enforcers. "The district court gave no notice that it was
considering such extraordinary relief," Microsoft said.

** Philanthropy **

Title: The Packard Way
Source: The Chronicle of Philanthropy (1/29/98, pg. 9)
http://www.philanthropy.com/
Author: Marina Dundjerski & Holly Hall
Issue: Philanthropy
Description: In the 1960s, when David and Lucile Packard held the first
board meetings of their charitable foundation, they weren't sitting in the
spacious, redwood-paneled offices that house their Silicon Valley
philanthropy today. The Packards did not give away millions back then ---
and certainly nothing close to the $286 million the foundation plans to
award this year, when its endowment will more than double to an estimated
$9.1 billion after an infusion of stock from Mr. Packard's estate. But the
couple was able to lay the groundwork for a foundation that reflects their
unpretentious but highly respected style of philanthropy.
*********

Communications-related Headlines for 1/29/98

Internet
WSJ: AOL Will Roll Out Guide for New York To Attract Local Ads
WSJ: Web Sites, Other PC Wonders Draw Crowds of Retirees

Telephony
TelecomAM: FCC Invites Bells To Discuss LD Applications, But Staffer Mentions
Stall Tactics
TelecomAM: Bell Atlantic Asks FCC For Help With Long Distance Application

Television
NYT: F.C.C. Plans to Take Look at Free Political Broadcasts

Jobs:
WP: A Program For Producing Techies

Research & Technology
NYT: U.S. Plans to Extend Tax Credit for Research

Corporate News
WP: Egghead To Close Stores
WSJ: Egghead, Reporting Quarterly Loss, To Close All Stores,
Move to Internet
NYT: Apple Reorganizes Claris Unit, Laying Off 300
WSJ: Cisco and Intermedia Ally With U S West In Networking Push

** Internet **

Title: AOL Will Roll Out Guide for New York To Attract Local Ads
Source: Wall Street Journal (B10)
http://wsj.com/
Issue: Internet
Description: AOL is expected to unveil a New York version of its city-news
and entertainment guides, an effort to capture local advertising dollars.
Digital City New York also will include commentary from well-known New
Yorkers such as journalist Pete Hamill and monologuist Spalding Gray. AOL's
one million New York members, as well as Web users, will be able to
communicate via chat rooms and put up home pages in a special area known as
the Virtual Neighborhood.

Title: Web Sites, Other PC Wonders Draw Crowds of Retirees
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Jim Carlton
Issue: Seniors & the 'Net/Lifestyles
Description: Packard Bell NEC reports that in 1997 customers over age 55
accounted for 14% of retail purchases of its PCs. People aged over 50 use
their PCs 14 days a month, according to the PC Meter tracking system of
Media Metrix, Inc. That's good news for the industry -- which is scrambling
to figure out how to capitalize on it. "The big challenge of marketing to
seniors is they are so diverse," says Hollie Chriss Cronin, senior manager
of desktop products at AST Computer. Packard Bell Electronics officials say
they have only recently begun holding focus groups with older people to
formulate a marketing strategy for them. Packard Bell, along with other
manufacturers, has also been in discussions with Microsoft to devise a
marketing campaign for software that might appeal to the older user.

** Telephony **

Title: FCC Invites Bells To Discuss LD Applications, But Staffer Mentions
Stall Tactics
Source: Telecom AM---Jan. 29, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: The FCC took its first formal step toward the "cooperative
approach" to long distance applications that several commissioners have
suggested recently, by saying it will meet informally with Bell company
officials to discuss their applications. The Common Carrier Bureau announced
that it will hold orderly meetings with the companies in coming weeks to
discuss "general issues" on the applications. The purpose of the meetings
will be to provide the Bells with "informal preliminary guidance" on market
entry, the FCC said.

Title: Bell Atlantic Asks FCC For Help With Long Distance Application
Source: Telecom AM---Jan. 29, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Bell Atlantic President and COO Ivan Seidenberg said that the
FCC needs to provide a clearer road map for Bell companies to win regulatory
approval to enter the long distance market. "They need to get their rules
straight," he told reporters. Seidenberg also called for deregulation of the
local business and data markets, saying that they are "plenty competitive."
On Jan. 27 the company asked the FCC to use the powers granted in Section
706 of the Telecom Act to permit it to provide high-speed broadband services
without regard to long distance boundaries. He said the filing is a good
chance for the Commission to prove its commitment to common sense regulation
and cooperation with the Bells.

** Television **

Title: F.C.C. Plans to Take Look at Free Political Broadcasts
Source: New York Times (A19)
http://www.nytimes.com/yr/mo/day/news/washpol/fcc-free-tv-ads.html
Author: Lawrie Mifflin
Issue: Free Time for Candidates/Campaign Finance Reform
Description: William Kennard, chairman of the Federal Communications
Commission, said that he would go ahead and start-up a process to require
broadcast television stations to give political candidates free advertising
time. Kennard said that commission staff members were currently drafting a
free-time proposal and that he would issue a "notice of proposed
rule-making" within two months to solicit debate on the subject with the
intention on formulating an FCC regulation. Sen. John McCain (R-AZ), who
chairs the Commerce Committee) responded saying that he believed Congress
would try to block any such ruling. "Decisions of that magnitude are made by
the legislative and executive branches, not a regulatory agency," McCain
said Wednesday. Kennard said, "I'd prefer that Congress take the lead on
this and provide a legislative solution but if Congress doesn't do so, the
FCC can and should be prepared to act. We have an obligation to insure that
the public airwaves are operating in a way that serves the public interest.
That's our mandate."

** Jobs **

Title: A Program For Producing Techies
Source: Washington Post (E1,E2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/29/237l-012998-idx.html
Author: Peter Behr
Issue: Jobs
Description: A pilot project in Falls Church, VA, is testing innovative ways
to deal with the region's increasing shortage of technology workers by
enlisting recruits from other work fields. The project is based on an
agreement between the 24 participating students and eight area Washington
employers in dire need of technicians: The students will pay for their first
three months of training. They are then offered paid internships at one of
the eight Washington companies. For the final three months, the students
will combine classroom work with on-the-job training. The project is being
run by the Northern Virginia Community College and financed through a state
grant.

** Research & Technology **

Title: U.S. Plans to Extend Tax Credit for Research
Source: New York Times (A15)
http://www.nytimes.com/library/cyber/week/012998tax.html
Author: John Markoff
Issue: Technology
Description: In a move that will most certainly be enthusiastically greeted
by Silicon Valley technology companies, Vice president Al Gore will announce
in a speech at Gerentech Corp., a biotechnology company, next week plans to
extend a $2.2 billion research-and-development corporate tax credit for one
year. The tax credit, which was first enacted in 1981, was established to
create an incentive for companies to increase their research and development
work in the United States. Originally, it was intended to expire at the end
of 1985, since then it has been extended eight times. "You wouldn't have a
Silicon Valley unless you have significant research and development
spending," said Douglas Henton, president of Collaborative Economics, an
economics consulting firm in Palo Alto, CA. An administration official
commented, "This is our way of saying, 'This is where the economy is heading
in the future."

** Corporate News **

Title: Egghead To Close Stores
Source: Washington Post (E1,E6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/29/230l-012998-idx.html
Author: Rajiv Chandrasekaran
Issue: Corporate Retrenchment
Description: Egghead Inc., one of the first companies to open computer
software stores in shopping centers across the U.S., announced yesterday
that they will be closing all of their real-world retail outlets and begin
to sell their products exclusively over the Internet. Although Egghead's
decision was partially motivated by a lack of sales in its software stores,
analysts call the company's decision to bet its future on the Internet a
bold and farsighted move. "The retail landscape is highly competitive. There
are many entities much larger than us selling products," said George P.
Orban, Egghead's chief executive. "We've asked ourselves some hard questions
and we think the real growth will take place on the Internet." Egghead is
the largest company to transfer over to an Internet-only retail operation.

Title: Egghead, Reporting Quarterly Loss, To Close All Stores, Move to Internet
Source: Wall Street Journal (B4)
http://wsj.com/
Author: Don Clark
Issue: Corporate Retrenchment/Internet Commerce
Description: Egghead is closing all of its stores and moving its business to
the Internet. They said it will close its 80 retail outlets and lay off 800
of its 1,000 workers. The remaining employees will work on the company's
software and hardware business on the Internet. They also said it will
change its name to Egghead.com to reflect the new sales strategy. Analysts
said the online approach stands a better chance, though Egghead's success
is far from assured.

Title: Apple Reorganizes Claris Unit, Laying Off 300
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/012998apple.html
Author: Associated Press
Issue: Corporate Retrenchment
Description: Apple Computer Inc., in an effort to continue to cut costs,
announced that it is reorganizing its Claris software subsidiary and laying
off approximately 300 employees. Claris will concentrate on its FileMaker
Pro database software and change its name to FileMaker Inc. Apple will take
charge of Claris' other products. "As FileMaker Inc., we can now focus all
our energies on our very successful FileMaker business," said Dominique
Goupil, president of Claris. "We are totally committed to growing this
business dramatically during the coming year."

Title: Cisco and Intermedia Ally With U S West In Networking Push
Source: Wall Street Journal (B7)
http://wsj.com/
Issue: Networks/Merger
Description: U S West Comm. announced two strategic alliances to reach big
customers outside its 14-state region. The Baby Bell said it will work with
Cisco systems to develop networked services such as fax over the Internet,
which can save money for corporate customers. U S West also said it has
allied with Intermedia Comm. to extend its data-networking capabilities. The
alliance with Intermedia allow U S West to offer "end-to-end" data and
networking services to businesses in its region, which it can't do now under
telecommunications law. "We can now get really aggressive and better service
the needs of our large business customers nationwide," said Joseph Zell,
president of U S West's data-networking unit.
*********

Communications-related Headlines for 1/28/98

EduTech
TeleAM: Lansing, Mich. May Lease PCS Tower Sites To Raise Funds
For School

Internet
NYT: Congress Faces List of Internet Issues
NYT: Bell Atlantic Opposes Internet Regulation
WSJ: Barnes & Noble, Disney To Unveil Agreement To Sell Books on Web
NTIA: New Frontiers on the Information Superhighway

Privacy
NTIA: Elements of Effective Self-Regulation for Protection of Privacy

Antitrust
NYT: Gates Goes on the Offensive During Silicon Valley Visit
WP: Gates Says Government Would Stifle Innovation
WSJ: Microsoft Isn't 'Defiant' In Justice Case, Gates Says

Campaign Finance Reform
WSJ: FCC Chief to Seek Free Air Time for Candidates

** EduTech **

Title: Lansing, Mich. May Lease PCS Tower Sites To Raise Funds For School
Source: Telecom AM---jan. 28, 1998
http://www.telecommunications.com/am/
Issue: EduTech/Wireless
Description: Local official in Lansing, Mich. are considering offering
wireless telecom companies a package of 15 sites in the city for locating
personal communications service and digital cellular communications towers,
in order to generate revenues for classroom technology programs in the
city's public schools. The Lansing board of Education and Lansing City
Council say they will be meeting to discuss a proposal by the nonprofit
Commission for Lansing School Success to take advantage of the high market
interest in wireless phone services to raise money for badly needed
technology upgrades in the schools.

** Internet **

Title: Congress Faces List of Internet Issues
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/012898congress.html
Author: Jeri Clausing
Issue: Internet Regulation
Description: As Congress returns from a long winter break they face a
growing list of complex decisions that will shape the future of Internet
content, commerce and privacy. One of the key unresolved issues from the
fall session is the regulation of encryption technology. "We remain
skeptical as to whether the industry attempt to relax export controls is
truly viable at this point," Dave Banisar of the Electronic Privacy
Information Center (EPIC) said at a privacy briefing last week. "If it comes
down to a bad bill...versus no bill at all, we prefer to have no bill at
this point." Don Haynes, a consultant for the American Civil Liberties Union
and former lobbyist, said the ACLU opposes "any legislation on encryption
right now because we believe the political climate in Congress is such that
it will inevitable serve as a vehicle for anti-privacy controls on domestic
use of encryption." For a brief overview on other bills to regulate the
Internet that Congress will be considering, click on:
http://www.nytimes.com/library/cyber/week/012898congress.html and scroll
down to the second half of the article.

Title: Bell Atlantic Opposes Internet Regulation
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/012898phone.html
Author: Associated Press
Issue: Telephony/Internet Regulation
Description: Yesterday, Bell Atlantic, the nation's largest regional Bell
telephone company, asked the Federal Communications Commission to bar states
from regulating Internet service. Although the FCC does not have a role in
regulating the price of these high-speed communications services offered by
telephone companies, Bell Atlantic would like the commission to step in to
pre-empt state rules. "As we read the 1996 Telecommunications Act, the FCC
would have the authority to remove high-speed services from regulation
completely," said Tom Tauke, Bell Atlantic senior vice president. "In
essence, the FCC would be pre-empting the states from regulating those
services." Neither state regulators or the FCC had immediate comment on Bell
Atlantic's request.

Title: Barnes & Noble, Disney To Unveil Agreement To Sell Books on Web
Source: Wall Street Journal (B8)
http://wsj.com/
Issue: Internet Commerce
Description: Barnes & Noble and Walt Disney are expected to announce an
Internet-marketing pact in which Barnes & Noble becomes the exclusive
bookseller on Disney's popular Web site. The bookseller will also open a
special on-line boutique for Disney titles on its own site. Terms weren't
disclosed, but Barnes & Noble bought advertising and prime promotional space
at Disney.com in return for exclusivity at the site and revenue for the sale
of books. The pact is a part of Barnes and Noble's continuing effort to
become the exclusive bookseller at some of the Internet's most-visited Web
sites as it goes head-to-head with 'Net rival Amazon.com.

Title: New Frontiers on the Information Superhighway
Source: NTIA
http://www.ntia.doc.gov/ntiahome/press/feb4ma.htm
Issue: Competition
Description: NTIA will hold its third forum in the New Frontiers on the
Information Superhighway Series on Wednesday February 4, in Washington DC.
NTIA will bring together new entrants, entrepreneurs, consumer groups, and
Wall Street analysts to discuss who is investing, who is entering, and who
is competing in the rapidly changing telecommunications industry.
Participants will share their vision of how to bring greater competition to
telecommunications markets.

** Privacy **

Title: Elements of Effective Self-Regulation for Protection of Privacy
Source: NTIA
http://www.ntia.doc.gov/reports/privacydraft/198dftprin.htm
Issue: Privacy
Description: NTIA and the Department of Commerce have released a Discussion
Draft, "Elements of Effective Self-Regulation for Protection of Privacy."
The document outlines preliminary views on self-regulation and the actions
that the private sector can take in order to meet an acceptable level of
privacy protection.

** Antitrust **

Title: Gates Goes on the Offensive During Silicon Valley Visit
Source: New York Times (D4)
http://www.nytimes.com/library/cyber/week/012898microsoft.html
Author: John Markoff
Issue: Antitrust
Description: Microsoft's Chairman, William H. Gates, went back on offensive
yesterday during a visit to Silicon Valley. During his speech he repeatedly
said that he would not accept restrictions on his ability to add features to
Microsoft's Window 95 operating system. He insisted that he had no intention
of defying the U.S. Government, but said that Microsoft would stand by its
guiding principles as an innovator in technology. Although Gates did discuss
a variety of topics ranging from his vision for computers in the future to
his commitment to education, throughout the day questions kept returning to
the company's legal dispute with the Department of Justice.

Title: Gates Says Government Would Stifle Innovation
Source: Washington Post (C11)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/28/127l-012898-idx.html
Author: Elizabeth Corcoran
Issue: Antitrust
Description: Bill Gates addressed several groups yesterday, starting with
several hundred financial analysts at a conference in San Francisco and
ending with a group of students at San Jose University. In a meeting with
reporters, Gates strongly defended Microsoft against federal allegations
that the software giant had violated a 1995 consent decree by requiring
computer makers to use its Internet browsing software as a condition of
licensing its Windows 95 software. Gates said that the Government's tack
suggests that "any software available separately can't get into the
operating system. What features are we allowed to put into the OS?" he
asked, ticking off a list of functions and features that were once
stand-alone products and have since become part of the operating system. "We
put things into the OS that [software] developers and users want." He also
said, "The principle endorsed by the government wouldn't let us build
Windows 95, or Windows NT," and it would similarly inhibit work by companies
such as Oracle Corp. and Netscape communications Corp. on their core
products, gates contended. "We have to stick up for the principle of
innovation."

Title: Microsoft Isn't 'Defiant' In Justice Case, Gates Says
Source: Wall Street Journal (B15)
http://wsj.com/
Issue: Antitrust
Description: Bill Gates said the portrayal of his company as "defiant" in
its current dispute with the Justice Dept. is incorrect, but vowed to defend
the company's ability to bundle new products into its Window operating
system. "I am the opposite of defiant," Mr. Gates said in a meeting with
reporters. "I am disappointed. I am humble. I am respectful." Gates said he
won't bend on what he called the principle that Microsoft alone has the
right to determine what features to include in its software.

** Campaign Finance Reform **

Title: FCC Chief to Seek Free Air Time for Candidates
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John R. Wilke
Issue: Campaign Finance Reform
Description: FCC Chairman Kennard will launch a new effort to require
broadcasters to give free air time to political candidates -- and he may
have the votes among fellow commission members to get it done. The plan
could face strong opposition from the politically powerful broadcast lobby.
There will also be resistance from the Republicans on Capitol Hill.
According to Kennard, more than 60% of funds go to pay for broadcast time,
making candidates hostages to constant fund-raising. Mr. Kennard is clearly
ready to act if Congress doesn't. "The law gives the FCC authority to define
the public interest obligations of broadcasters," he said in an interview.
"The airwaves belong to the public."
*********

Communications-related Headlines for 1/27/98

EdTech
FCC: SLC Announces Opening of Website
WP: School Computer Parity Has High Price in Fairfax

Telephony
WSJ: Supreme Court to Review Parts of Telecom Act
NYT: High Court to Hear Dispute On Opening Phone Markets
WP: Supreme Court Accepts Phone Case Rivalry
TelecomAM: Supreme Court To hear FCC's Appeal Of 8th Circuit Rulings
FCC: WTO Agreement on Basic Telecommunications Services
NYT: AT&T Maps Its Battle Plan For Escalating Phone Wars
WP: AT&T Plans to Cut Up to 18,000 Jobs
WSJ: AT&T Revamping to Trim 18,000 Jobs

Infrastructure
WSJ: Bell Atlantic Seeks Clearance For Network
WSJ: Lucent Innovation Boosts the Capacity Of Fiber Networks

Television
B&C: Kids rules, what kids rules?
B&C: Copyright to Study Local-into-Local
B&C: Broadcasters Concerned about DBS Must-carry

Internet
WP: Web Venture Links Lobbies, Legislation

Privacy
NYT: 'Gay' Sailor's Dismissal Is Blocked
WP: Judge Blocks Navy's Discharge of Gay Sailor
WSJ: When Is a Satellite Photo An Unreasonable Search?

** EdTech **

Title: SLC Announces Opening of Website
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da980129.html
Issue: Universal Service/EdTech
Description: The Schools and Libraries Corporation (SLC) has announced that
the website on which completed applications will be posted for competitive
bidding will open on Friday, January 30, 1998. The website address is
www.slcfund.org. The website will operate every day from 5:00 a.m. to
midnight Eastern Time. The opening of the website triggers the beginning of
the 75 day initial filing window, during which all applications (FCC Forms
470 and 471) will be treated as if filed simultaneously. The 75 day window
will begin and schools and libraries may begin to submit applications,
therefore, on Friday, January 30, 1998. For further information, contact the
Schools and Libraries Corporation's Client Service Bureau at its toll-free
telephone number (1-888-203-8100) or by fax (1-888-276-8736).

Title: School Computer Parity Has High Price in Fairfax
Source: Washington Post (B5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/27/077l-012798-idx.html
Author: Victoria Benning
Issue: EdTech
Description: A new report prepared by Fairfax (VA) school administrators,
says it
would cost at least $150 million over the next four years to close the gaps
in student access to computers in Fairfax County. The average cost of $37.5
million a year is almost twice the amount of what the district receives in
its annual technology budget of $20 million. In order to maintain and
upgrade equipment and to provide computer training to school staff members
following the four year catch-up period, the district would also need to
spend about $43 million annually. The administrators who prepared the report
acknowledge that there will not be enough money to obtain that goal but that
the estimates provide the School Board with a clearer picture of how far the
district is from providing equal access to classroom computers at every school.

** Telephony **

Title: Supreme Court to Review Parts of Telecom Act
Source: Wall Street Journal (A4)
http://wsj.com/
Author: Eva M. Rodriguez
Issue: Telephone Regulation/Telecom Act
Description: The Supreme Court agreed to review parts of the 1996 Telecom
Act, leaving communications companies in limbo until next year when the
court is expected to issue its decision. The case consolidates a cluster of
appeals centering on the law which was intended to deregulate the
multibillion-dollar telephone industry and spur competition in both local
and long-distance service. Specifically, the justices will review whether
the FCC has the authority to regulate the prices that regional Bell
companies charge long distance companies and others to connect to their
networks or buy access to parts of it.

Title: High Court to Hear Dispute On Opening Phone Markets
Source: New York Times (D2)
http://www.nytimes.com/yr/mo/day/news/financial/scotus-phones.html
Author: Linda Greenhouse
Issue: Telephone Regulation/Telecom Act
Description: Following a warning by the Federal Communications Commission
that the future of local telephone competition was at stake, the Supreme
Court agreed yesterday to review a decision that limited the Commission's
role in opening up the $100 billion market for local telephone service to
new players. The appeal, which the justices will not hear until their next
term beginning in October, was brought by a broad coalition of long distance
telephone companies, including AT&T, MCI and Sprint, and the FCC. "The
companies are trying to break the long-standing monopolies and offer local
telephone service nationwide, under provisions of the Telecommunications Act
of 1996." On the other side are the incumbent providers of local telephone
service who have allied themselves with state regulators. The incumbents
have won a series of notable legal victories in an effort to preserve their
current dominance in local markets. The FCC's role in interpreting and
carrying out the mandate for competition under the Telecommunications Act
is at issue in the case the Supreme Court accepted.

Title: Supreme Court Accepts Phone Case Rivalry
Source: Washington Post (D1,D4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/27/117l-012798-idx.html
Author: Joan Biskupic and Mike Mills
Issue: Telephone Regulation/Telecom Act
Description: "The Supreme Court announced yesterday that it will resolve a
dispute over federal regulations intended to bring greater competition, and
potentially lower consumer prices, to the nation's $110 billion local
telephone markets. The justices will hear a challenge brought by the Clinton
administration and long-distance companies to a lower-court ruling that
sharply curtailed the ability of federal regulators to set terms on the
prices that competitors must pay to connect local phone networks."

Title: Supreme Court To hear FCC's Appeal Of 8th Circuit Rulings
Source: Telecom AM---jan. 27, 1998
http://www.telecommunications.com/am/
Issue: Telephone Regulation/Telecom Act
Description: The U.S. Supreme Court will hear appeals of the Eighth U.S.
Appeals Court, St. Louis, rulings that overturned key parts of the FCC's
interconnection order. The court decided to take up the case during a
closed-door meeting, but left the telecom industry in limbo over the
weekend. The decision to hear the case is considered a major victory for the
FCC, long distance carriers and new competitive phone companies because it
means that the court will most likely hear the case before the court's
current term ends this summer.

Title: WTO Agreement on Basic Telecommunications Services
Source: FCC
http://www.fcc.gov/Bureaus/International/News_Releases/1998/nrin8001.html
Issue: International/Telephone
Description: FCC Chairman William Kennard hailed the decision reached in
Geneva today on entry into force of the World Trade Organization (WTO)
Agreement on Basic Telecommunications Services. WTO Members agreed that the
pact would become effective on February 5, just one year after the agreement
was concluded. Chairman Kennard said, "This agreement allows
telecommunications consumers worldwide to enjoy the benefits of improved
competition in basic and advanced telecommunications services. It will
increase investment and competition in the United States, leading to lower
prices, enhanced innovation and better service. At the same time, market
access commitments from major trading partners will provide U.S. service
suppliers opportunities to expand abroad."

Title: AT&T Maps Its Battle Plan For Escalating Phone Wars
Source: New York Times (D1,D4)
http://www.nytimes.com/yr/mo/day/news/financial/att-restructure.html
Author: Seth Schiesel
Issue: Corporate Retrenchment
Description: In the first time he has publicly outlined his plan for
revitalizing the AT&T Corporation, the company's new chairman, C. Michael
Armstrong, said yesterday that he will not only reduce AT&T's work force by
up to 14 percent but also will offer a variety of new services, including
wireless phones that will receive calls free, and cheap phone calls via the
Internet. The company also plans to spend billions of dollars to upgrade its
national communications network and to introduce a new type of wireless
phone made by Nokia of Finland with a battery that lasts up to eight days --
much longer than that battery life of today's mobile phones. The cuts, which
will come in the form of layoffs and voluntary buyouts, were described by
analysts and Mr. Armstrong as being "important medicine" for AT&T as it
works to "return to vigor amid the sweeping changes in the
telecommunications landscape.'

Title: AT&T Plans to Cut Up to 18,000 Jobs
Source: Washington Post (D1,D4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/27/108l-012798-idx.html
Author: Mike Mills
Issue: Corporate Retrenchment
Description: C. Michael Armstrong, AT&T's new chairman, outlines his plans
yesterday to overhaul the huge communications company. His plans include
eliminating 15,000 too 18,000 jobs, launching a new Internet telephone
service and renewing focus on he local telephone and business communications
markets. "We beat the street on the earnings and we need to grow more on the
revenue," Armstrong said. "We have more to do to achieve a competitive cost
position and invest for growth."

Title: AT&T Revamping to Trim 18,000 Jobs
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John J. Keller
Issue: Corporate Retrenchment
Description: AT&T's Chairman C. Michael Armstrong unveiled a top-to-bottom
revamping that will entail as many as 18, 000 new job cuts, as much as $1.2
billion in charges against earnings in the first half and aggressive new
investments to revitalize the telecommunications giant. Armstrong laid out a
sweeping plan to make AT&T more competitive as it tries to expand into local
Internet and wireless services and stave off newcomers in long-distance
service. The plan is only a first step, though. Mr. Armstrong must still
figure out how to differentiate what AT&T sells from a raft of rival
offerings if it is to meet its most crucial long-term challenge: revenue growth.

** Infrastructure **

Title: Bell Atlantic Seeks Clearance For Network
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Infrastructure
Description: Bell Atlantic is expected to file a petition with the FCC
asking for regulatory relief for a high-speed network it aims to build. The
Baby Bell said it wants to build an Internet "backbone" to relieve
data-traffic congestion in its territory, which stretches from Maine to
Virginia. The carrier said it plans to ask the FCC to exempt that data
network from the same pricing rules and regulations that govern the Bell's
voice network. "The company is interested in making a substantial
infrastructure investment," said Tom Tauke, Bell Atlantic's senior VP for
government relations. "But we see barriers in the regulatory arena." Those
barriers include a restriction that prohibits Bell companies from carrying
calls between certain local-area boundaries within their regions.

Title: Lucent Innovation Boosts the Capacity Of Fiber Networks
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Infrastructure
Description: Lucent Technologies said it has developed a system that can
transmit as many as 400 billion bits of data per second over a single strand
of fiber. The system, which delivers five times the bandwidth of current
systems, raises the standards for such systems, which use a technology known
as dense wavelength division multiplexing. AT&T said it plans to deploy
Lucent's system to double the capacity of its 40,000-mile fiber optic
network by year's end. Wavelength division multiplexing increases the amount
of data a fiber can carry by dividing the strand into multiple channels of
light. Lucent's new system can split certain fibers into 80 channels as
opposed to the commercially available systems that can only split fibers
into 16 channels.

** Television **

Title: Kids rules, what kids rules?
Source: Broadcasting&Cable (pg.36)
http://www.broadcastingcable.com/
Author: Barry Garron
Issue: Children's TV
Description: New federal regulations requiring educational programs for
children have had virtually no effect, according to members of a NATPE panel on
children's programming. "I don't think more people are watching us, and I
don't think fewer people are watching us," said Carol Monroe, Fox Kids
Network senior VP of program services. What matters isn't whether or not the
program is educational but whether it's good, said John Claster, president
of Claster Television. Cyma Zarghami of Nickelodeon said it is possible to
do great educational programs for preschoolers but difficult to make them
attractive to older children.

Title: Copyright to Study Local-into-Local
Source: Broadcasting&Cable (pg.24)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Satellites/Copyright
Description: The U.S. Copyright Office will examine whether current law
allows direct broadcast satellite companies to offer local broadcast signals
in certain local markets. EchoStar Comm. wants to offer local broadcast
signals to all viewers in the top 20 TV markets, but needs a change in the
law to do so legally. EchoStar asked the Copyright Office to rule that the
law does allow satellite companies to rebroadcast local signals in local
markets. The Copyright Office said that it would open an inquiry.

Title: Broadcasters Concerned about DBS Must-carry
Source: Broadcasting&Cable (pg.24)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Satellites
Description: Broadcasters pressed policymakers on whether they plan to
impose must-carry obligations on EchoStar. "There's some trade-off here",
Commerce Dept. Assistant Secretary Larry Irving said. He added that the
administration wants to promote the ability of DBS companies to compete with
cable, but also wants to protect local broadcasters. Worried broadcasters
voiced fears about a renewed court battle over the rule requiring cable
systems to carry the signals of local broadcasters. Others were concerned
that stations not affiliated with one of the four major networks will be
left out of the satellite service.

** Internet **

Title: Web Venture Links Lobbies, Legislation
Source: Washington Post (A15)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/27/033l-012798-idx.html
Author: Bill McAllister
Issue: Internet
Description: A new web site http://www.incongress.com, that developers say
may presage the electronic way to lobbying on Capitol Hill, will debut this
week as Congress reconvenes. The site brings together texts of proposed
legislation and the policy positions that various interest groups have
issued on the proposals, as well as links to governmental and congressional
sites. Although Congress and other groups have their own Web sites,
InCongress creators say their site is different because it brings all the
information together in one place.

** Privacy **

Title: 'Gay' Sailor's Dismissal Is Blocked
Source: New York Times (A8)
http://www.nytimes.com/library/cyber/week/012798navy.html
Author: Philip Shenon
Issue: Privacy
Description: In a decision hailed by gay rights groups and advocated of
electronic privacy, a Federal judge ordered the Navy yesterday to halt its
efforts to dismiss a highly decorated sailor because he posted a message on
an on-line server that described his marital status as gay. Federal District
Court Judge Stanley Sporkin said, "Although Officer McVeigh did not publicly
announce his sexual orientation, the Navy nonetheless impermissibly embarked on
a search and 'outing' mission." Judge Sporkin added that he "cannot
understand why the Navy would seek to discharge an officer who has served
his country in a distinguished manner just because he might be gay."

Title: Judge Blocks Navy's Discharge of Gay Sailor
Source: Washington Post (A6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/27/047l-012798-idx.html
Author: Bradley Graham
Issue: Privacy
Description: A federal judge blocked the navy from discharging Senior Chief
Petty Officer, Timothy McVeigh, for homosexuality yesterday. U.S. District
Judge, Stanley Sporkin, castigated military officials for "launching a
search and destroy" mission against the sailor based on information they
received from an online computer service. Judge Sporkin also said that the
Navy had violated not only Pentagon guidelines for investigating suspected
homosexuals but also federal statutes set in place to protect the privacy of
Internet users.

Title: When Is a Satellite Photo An Unreasonable Search?
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Ross Kerber
Issue: Privacy
Description: Does taking satellite photos of private citizens and their
property -- generally without ther knowledge -- violate the Constitution's
Fourth Amendment protections against unreasonable searches? The American Bar
Assoc. has organized a task force to explore that question. Because U.S.
Justice Dept. officials are on the task force, the recommendations are
expected to influence how law enforcement authorities and civil agencies use
the new images and at what point they require warrants. "It certainly has a
'Big Brother Is Watching You' flavor to it," says Larry Griggers, a director
at the Georgia Dept. of Revenue. "But it prevents us from having to spend
money for other types of enforcement." (I bet it does.... -p.h.)
*********

Communications-related Headlines for 1/26/98

Television
B&C: Moonves: Sweeps stunting backfires
B&C: Let's make a deal -- for CPs
B&C: Tauzin slams NFL deals
B&C: Divided FCC debates ownership

Telephony
WSJ: Telecom Competition Is Coming --- Sooner Than You Think
TelecomAM: Oregon Asks FCC For Waiver of E-Rate Matrix, Says All Schools
Financially Equal
TelecomAM: Court bars FCC From Using Pricing Standard In Section 271 Reviews
TelecomAM: Kennard 'Disappointed' By St. Louis Court's Ruling
TelecomAM: Supreme Court Leaves FCC Eighth Circuit Appeal In Limbo

Internet
WSJ: RealNetworks Plans Technology Pact With Sun in Move Away From
Microsoft
WP: PSINet's Quest for Independence
NYT: Three Giants of PC World Turn Focus to Speed
NYT: Internet Chat Rooms Becoming a Popular Forum for Business
NYT: Internet Group Challenges U.S. Over Web Addresses

Antitrust
NYT: Unlike Microsoft, Intel Opts to Speak Softly on Antitrust Issues

International
NYT: In Africa, Reality of Technology Falls Short

Lifestyles
NYT: Enter Geekdom's Diaper Dandy. Sigmund, Can You Explain This?

** Television **

Title: Moonves: Sweeps stunting backfires
Source: Broadcasting&Cable (p.34)
http://www.broadcastingcable.com/
Author: Steve McClellan
Issue: Television Economics
Description: Delivering the keynote speech at a convention of television
programming executives last week, CBS Entertainment President Leslie Moonves
said that if broadcasters want to stop rating erosion, they must start with
scheduling and "stop shooting wads at each other come sweeps time."
"Competitive scheduling moves...may pass the testosterone test, but...they
cheat viewers, who often face viewing decisions that aren't good for them or
us," Mr. Moonves said. He continued by saying that even in the face of
ratings erosion, network television remains the first choice of advertisers
and will remain so for years to come -- especially if cable networks
continues with its current programming philosophy. In November, the top 50
cable shows were 22 theatrical movies not available to advertisers, 12
Nickelodeon kids shows, 16 sports events, wrestling, off-network repeats,
one news special, a music special and a handful of movies: "Hardly examples
of original comedy and drama, and collectively they had an average rating of
2.1," Mr. Moonves said.

Title: Let's make a deal -- for CPs
Source: Broadcasting&Cable (p.6)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Spectrum/Television
Description: "It's the gold rush of the late 90's" says Paxson
Communications chief Bud Paxson. Broadcasters are scrambling to collect
leftover licenses that have been sitting idle at the Federal Communications
Commission. The deadline to make deals for construction permits is Friday,
January 30. "These construction permits aren't worth much without a concept
that will attract viewers," says Julius Genachowski, general counsel for USA
Network's broadcasting division and former policy advisor to ex-FCC Chairman
Reed Hundt. USA and other broadcasters think they have the winning concept.
So far construction permits have been worth millions -- Paxson has
reportedly paid $2.5 million for a license in Texas while the most expensive
ones have gone for $4 million. There are 90 commercial licenses available.
[Gosh, and this when broadcasters are crying about the costly transition to
digital TV -- think they figure to make money off that?]

Title: Tauzin slams NFL deals
Source: Broadcasting&Cable (p.19)
http://www.broadcastingcable.com/
Author: Harry Jessell
Issue: Television Economics/Cable
Description: Speaking to the Association of Local Television Stations, Rep
Billy Tauzin (R-LA) expressed concern about the recently announced
television deals for National Football League games. Rep Tauzin is
especially concerned with the high price cable network ESPN paid for the
Sunday night package of games. ESPN will reportedly pass its costs on to
cable operators in the form of higher affiliate fees. Cable operators, in
turn, will pass their costs on to subscribers in rate hikes. In the end,
consumers could pay for this programming whether they watch it or not.

Title: Divided FCC debates ownership
Source: Broadcasting&Cable (p.22)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Ownership
Description: Although it may not be on the Federal Communications Commission
Agenda until April, four FCC commissioners expressed concern over ownership
rules. Commissioners Powell and Furchtgott-Roth support a reevaluation of
ownership rules based on industry changes that have underminded the
rationales for barring companies from owning multiple stations within a
market. Commissioner Powell held up a TV Guide to stress his point that
there is plenty of programming diversity and Commissioner Furchtgott-Roth
said, "The role of the commission is to follow the law, not invent it." But
Commissioners Tristani and Ness stressed the need for diversity: "The
underpinning of democracy is to receive a wide diversity of voices,"
Commissioner Ness said.

** Telephony **

Title: Telecom Competition Is Coming --- Sooner Than You Think
Source: Wall Street Journal (Op-eds, A18)
http://wsj.com/
Issue: Competition
Description: In the two years since President Clinton signed the
Telecommunications Act of 1996, the prevailing wisdom has held that the
nation's progress toward competition for local telephone service has been
lamentably slow. Some of what the critics say has the ring of truth. True,
the big Bell companies still control more than 98% of the 155 million local
phone lines in the U.S. The big long distance players have not moved as
quickly as some had hoped to enter local markets. A series of mergers and
acquisitions has left the nation with fewer potential local telephone
competitors. And the federal courts have thrown the regulatory environment
into turmoil by tossing aside key portions of the act and the regulations it
spawned. But now a group of smaller companies have started to bring the
benefits of competition to key segments of the local communications market.
The new competitors are accomplishing this by battling in the marketplace
rather than the courts.

Title: Oregon Asks FCC For Waiver of E-Rate Matrix, Says All Schools
Financially Equal
Source: Telecom AM---jan. 26, 1998
http://www.telecommunications.com/am/
Issue: EdTech/Universal Service
Description: Oregon's Dept. of Education has asked the FCC to waive its
sliding scale of subsidized "E-rate" discounts and allow a single statewide
discount for all Oregon schools because the state last year reformed school
financing to eliminate economically disadvantaged schools, ensuring each
student receives the same number of dollars and approximately the same
quality of education regardless of where they live.

Title: New Arizona Bills Would Redefine Telecom Firms' Relations With Local
Governments
Source: Telecom AM---jan. 26, 1998
http://www.telecommunications.com/am/
Issue: Role of Local Government
Description: Two bills introduced in the 1998 Arizona legislature would
redefine telecom companies's relations with local governments. The first
would allow local governments to impose a local gross receipts tax of up to
4% on telecom companies, provided the locality repeals all other
telecom-specific fees of taxes such as local franchise fees or right-of-way
privilege taxes. The bill would permit telecom companies to offer in-kind
services at fair market value to offset local gross receipts taxes due. The
second bill would relieve telecom companies from having to seek authority
from local governments to conduct business, and give the companies the legal
right to access public rights-of-way owned by local governments. This bill
would prohibit localities from imposing any non-cost-based fees or taxes on
telecom companies for construction permits or use of public rights-of-way.

Title: Court bars FCC From Using Pricing Standard In Section 271 Reviews
Source: Telecom AM---jan. 26, 1998
http://www.telecommunications.com/am/
Issue: Long Distance/Competition
Description: The Eighth U.S. Appeals Court ordered the FCC to stop using a
forward-looking pricing standard in reviewing Bell company Section 271
applications to enter long distance. It ordered the FCC to comply with its
ruling last year barring the Commission from setting nationwide pricing. The
Nat'l Assoc. of Regulatory Utility Commissioners, which asked for the order
along with the Bells, said it was "pleased" with the ruling.

Title: Kennard 'Disappointed' By St. Louis Court's Ruling
Source: Telecom AM---jan. 26, 1998
http://www.telecommunications.com/am/
Issue: Competition
Description: FCC Chairman Kennard said he was "disappointed" that "yet
another court decision will delay the benefits of competition." He said this
in the wake of the order by the U.S. Appeals Court that the FCC must "cease
and desist" applying pricing standards to Bell companies' long distance
applications. Meanwhile, AT&T said the order is "one more reason" why the
U.S. Supreme Court should hear an appeal of the St. Louis court's original
ruling striking down much of the FCC's interconnection order.

Title: Supreme Court Leaves FCC Eighth Circuit Appeal In Limbo
Source: Telecom AM---jan. 26, 1998
http://www.telecommunications.com/am/
Issue: Competition
Description: The Supreme Court left the telecom industry in limbo by ending
a closed-door meeting intended to decide whether it would hear appeals of
two recent rulings saying it would hear the case. At issue is whether the
court will hear several related appeals of the Eighth Court's decisions on
the FCC's interconnection order that competitors say hampered the FCC's
authority to oversee competition in the local phone market. The Court's
Friday list of appeals that it will hear did not include any of the St. Luis
decisions, but the court may add to the list on Monday.

** Internet **

Title: RealNetworks Plans Technology Pact With Sun in Move Away From Microsoft
Source: Wall Street Journal (B7)
http://wsj.com/
Author: Kara Swisher
Issue: Merger
Description: RealNetworks is forging an alliance with Sun Microsystems that
could create tension with one of its major partners and shareholders,
Microsoft. The strategic technology and marketing agreement will essentially
make RealNetworks' products work best with Sun's Solaris line of servers.
The deal with RealNetworks could give Sun an important edge because it is
unlike traditional "bundling" relationships where the software is simply
offered along with hardware without much integration. Instead, said
RealNetworks Chairman and CEO Rob Glaser, Sun and RealNetworks will
"optimize" the latest versions of its software specifically for Sun's line
of servers. "We're aiming for a dramatic improvement in performance and
scalability," said Mr. Glaser.

Title: PSINet's Quest for Independence
Source: Washington Post (Business p6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/26/020l-012698-idx.html
Author: Rajiv Chandrasekaran
Issue: Mergers
Description: Over the past year most Internet service providers have agreed
to be acquired by other companies. PSINet Inc., based in Herndon, VA, on the
other hand wants to go it alone. Last week, the company's board rejected an
offer by USinternetworking Inc. to buy at least a 51 percent stake for $10 a
share, which would value the entire company at $400 million. Instead as part
of its independence strategy, PSINet decided to enter a business deal with
IXC Communications Inc., a Texes telecommunications firm. The deal will give
PSINet the right to use 10,000 miles of IXC's high-speed fiber optic cables,
which will boost PSINet's data-carrying capacity. In exchange IXC will
receive nearly a 20 percent stake, or 10 million shares, of PSINet. Alan
Bravemen, an analyst with Credit Suisse First Boston in New York, said that
PSINet's current strategy could work just fine. "Looking backward, they've
made some strategic and managerial missteps. But this IXC deal gives them a
great advantage in the market that could make them a winner in the long run."

Title: Three Giants of PC World Turn Focus to Speed
Source: New York Times (D1,D6)
http://www.nytimes.com/library/cyber/week/012698access.html
Author: Seth Schiesel
Issue: Infrastructure
Description: The new Internet coalition, formed to provide faster links to
the Internet over normal phone lines, will be officially announced today.
Compaq, Intel and Microsoft, the three companies that proposed the
coalition, essentially want computers that will be able to talk faster. By
working with the largest local telephone companies, they aim to control
access to the newest avenue to fast connections to the Internet.

Title: Internet Chat Rooms Becoming a Popular Forum for Business
Source: New York Times (D5)
http://www.nytimes.com/library/cyber/week/012698chat.html
Author: Gordon Arnaut
Issue: Internet Use
Description: There is a flurry of interest in using online chat rooms, what
many consider to be the underbelly of the Internet, as a business tool.
Companies like Merrill Lynch and IBM are experimenting with chat as a way to
interact with customers on a more personal level. While groups like the
Pristine Real Time Trading Room charge subscribers $525 a month for access
to their timely buy and sell trading instructions and opportunities. Others
see chat as a possible tool for education and training. The software
industry does not expect chat to have a major impact on business anytime in
the near future. Nevertheless, Amy Bruckman, an assistant professor at
Georgia Tech and a former researcher at the MIT's Media Lab predicts that
chat will become almost as popular for business as it is for users of online
services. "I don't think it will ever be as widely used as email. But I
think it already is and will continue to be used in serious business contexts."

Title: Internet Group Challenges U.S. Over Web Addresses
Source: New York Times (D5)
http://www.nytimes.com/library/cyber/week/012698domain.html
Author: Amy Harmon
Issue: Internet Domains
Description: The Council of Registrars, an international group which is led
by many of the engineers who have written the code that makes the domain
system of the Internet work, has pitted itself against the federal
government, who is currently working to release recommendations trying to
balance competing proposals about the Internet's future. It appears that the
Clinton administration is unlikely to endorse a proposal assembled by the
council to start a shared data base to register sites in seven new domains.
After hearing of this, the council resolved to go forward without the
government's involvement. But regardless of what the engineers say, the
federal government still retains nominal control over the root server which
distributes new address information to other root servers worldwide. "As the
Internet grows bigger and more international, it is not appropriate for it
to be an appendage of the U.S. government," said Ira Magaziner, the Clinton
administration's chief Internet advisor. "But we have a prime directive, and
that is to preserve the stability of the Internet. That's why we can't say,
'OK, we're getting out of it next month.'" On the other hand, Don Heath,
president of Internet Society, a nonprofit who draws most of its members
from the technical community, warned, "If the government tries to dictate
without the will of the Internet agreeing, it will not function. The
Internet works by cooperation. When there ceases to be cooperation, there
ceases to be an Internet." A member of the group said yesterday that a
meeting has been scheduled between the council and Ira Magaziner for this week.

** Antitrust **

Title: Unlike Microsoft, Intel Opts to Speak Softly on Antitrust Issues
Source: New York Times (D1,D9)
http://www.nytimes.com/library/cyber/week/012698intel.html
Author: Steve Lohr
Issue: Antitrust
Description: The Intel Corporation controls nearly 85 percent of the market
for the microprocessor chips of PC's, Microsoft has a similar share of the
market with its operating system for software and both companies have been
under investigation by antitrust authorities, the Federal Trade Commission
or the Justice Department, for most of the 1990's. Intel, however, has been
much more successful than Microsoft in keeping its name out of headlines and
the antitrust challenges to its market power out of federal court. Industry
executives and antitrust experts say much of this is due to Intel's cautious
and painstaking approach to the antitrust issue in its internal procedures
and public statements. Intel executives will not comment on the current
Microsoft case. But one person closest to Intel said that the company's top
executives are concerned that Microsoft's handling of the case could result
in a "potential political spillover" with Intel having to share in criticism
aimed at Microsoft. The person said, "Intel would prefer that Microsoft were
doing this in a lower-profile, less combative way."

** International **

Title: In Africa, Reality of Technology Falls Short
Source: New York Times (D1,D10)
http://www.nytimes.com/library/cyber/week/012698africa.html
Author: Howard W. French
Issue: International
Description: As new technologies like cellular telephones and the Internet
spread around the world, conventional wisdom in the West held that
predominantly poor countries throughout the continent of Africa would be
able to make great leaps forward by using these tools to over come one of
the most crippling legacies of underdevelopment: unreliable and
prohibitively expensive communications. While in some areas these new
technologies are proving to be indispensable, in most of the continent these
tools are haunted by the same stubborn facts of life as their predecessors,
the automobile and the telephone: with the number of have-nots greatly
out-numbering the haves, many modern innovations are passing millions of
people by. Currently, Manhattan has more telephone lines than exist in more
than three dozen countries of sub-Saharan Africa. In the Ivory Coast,
getting a new telephone line can take two to three months, and 80 percent of
all of the computers purchased there are bought by the government or private
businesses. Alin Ahounou, commercial director of Globe Access, said, "People
are very interested when you explain the Internet to them. But then they
tell you that they are still waiting for a telephone line, or that the
computer they want to buy is too expensive. In the end you realize that what
we really have here is a lack of equipment." "Whether for the equipment of
the services themselves, price stands out as the major inhibiting factor
throughout Africa, and the continent's difficult economic straits present a
cruel barrier to the very technologies that many expected would help create
an economic takeoff."

** Lifestyles **

Title: Enter Geekdom's Diaper Dandy. Sigmund, Can You Explain This?
Source: New York Times (D7)
http://www.nytimes.com/library/cyber/week/012698baby.html
Author: David Barboza
Issue: Lifestyles!
Description: Baby Cha Cha, better known as the Dancing Baby recently seen on
the television show "Ally McBeal," is turning into the newest, and youngest,
national pop icon. Some believe that the Dancing Baby offers insight into
the deeper aspects of American culture and the human psyche. When Camille
Paglia, the "enfant terrible of academia" was asked her opinion on this
fascination with the baby, she said, "For people to identify with a dancing
baby indicates some deep deep trauma. Young people want caretaking. They
want someone to make rules, to monitor their sex life; they want dddies. The
Dancing Baby is a self-portrait of American youth." Maryam Razvi, a
professor at the New York School for Psychoanalystic, Psychotherapy and
Psychoanalysis, was asked what Freud would have made of this diapered dynamo
with provocative gyrations. She said, "The baby clicks into something in our
unconscious. A Freudian would see this as a person's wish to exhibit, to
exhibit your freedom and your sexuality." The diapered cyberkid was created
two years ago by animators working for Kinetix, a software publisher in San
Francisco, as a demo for an animation program. Baby Cha Cha, has been
altered into such permutations as Psycho Baby, Rasta Baby, Car Crash Baby,
and Drunken Baby. It makes you wonder, if so much can be speculated about a
Dancing Baby, what do these versions say about the American culture and
human psyche?
*********