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Communications-related Headlines for 10/8/97

Arts
NYT: Alexander Plans to Resign As Leader of Arts Agency

Mergers: A New Biggest Deal of All Time
NYT: AT&T Talking to GTE About Teaming Up, Executives Say

Competition
TelecomAM: Consumer Group Blasts BOCs for Lack Of Local Competition

Universal Service
TelecomAM: FCC Rules States Can Impose Universal Service Assessments
on Wireless Firm

Internet
WSJ: Firms File Suits Over Internet Addresses

** Arts **

Title: Alexander Plans to Resign As Leader of Arts Agency
Source: New York Times (A12)
http://www.nytimes.com/yr/mo/day/news/arts/nea-alexander.html
Author: Judith Miller
Issue: Arts
Description: Jane Alexander, chairwoman of the National Endowment for the
Arts, may resign after Congress approves appropriations for the agency.
Reportedly, Ms. Alexander plans to resume her acting career. Although she
made the decision about a month ago, Ms. Alexander has told only friends and
the White House for fear that her resignation may prompt a fresh assault on
the agency's budget [which seems like an excellent reason for the NYT and
Headlines to cover it now, before approval]. Ms. Alexander has seen the NEA
through its most difficult period, battling the religious right (which says
the agency gives taxpayers money to attack religion and produce pornography)
as well as the left (which says the agency's grants are too restrictive).
[So how well did Alec Baldwin's last movie do?]

** Mergers **

Title: AT&T Talking to GTE About Teaming Up, Executives Say
Source: New York Times (D1)
http://www.nytimes.com/yr/mo/day/news/financial/att-gte.html
Author: Seth Schiesel
Issue: Mergers
Description: Another day, another possible "biggest deal of all time." AT&T
and GTE are reportedly in merger talks -- a possible deal is valued at $48
billion (dwarfing WorldCom's $30 billion bid for MCI). AT&T is seeking a
partner that can help its "torpid local telephone strategy." GTE would be
AT&T's third choice after talks with BellSouth and SBC fell apart. AT&T is
also seeking an executive to succeed CEO Robert Allen and GTE's Charles Lee
could fill that slot. GTE offers local and long distance telephone service
in 29 states.

** Competition **

Title: Consumer Group Blasts BOCs for Lack Of Local Competition
Source: Telecom A.M.--Oct. 7, 1997
http://www.tpgweb( at )cappubs.com
Issue: Competition
Description: The Americans For Competitive Telecommunications (ACT) is
blasting Bell Operating Companies (BOCs) for a lack in competition in the
local service market. In a report issued by ACT, it stated, "No BOC in any
state, from California to Michigan to Florida, has fully complied with the
Telecommunications Act of 1996 and no real competition exists for consumers
in any local market." ACT's solution to the "monopoly over local markets" is
more federal regulation. Mark Phigler, president of Calif.-based ACT, said,
"Obviously, the trend has been to return authority to the state level, but
it isn't going anywhere. There will never be any real competition in the
residential local market unless the rates for resale and unbundling reach
levels that open the market up to a lot of players. That's more likely to
happen with regulation coming from the federal level, than from states."

** Universal Service **

Title: FCC Rules States Can Impose Universal Service Assessments on
Wireless Firm
Source: Telecom A.M.--Oct. 7, 1997
http://www.tpgweb( at )cappubs.com
Issue: Universal Service
Description: The FCC has determined that the 1993 law prohibiting states
from regulating rates and market entry of wireless phone services doesn't
bar state legislature from requiring that these services contribute
financially to support state universal service programs. Pittencrieff
Communications brought a petition to preempt the provision of Texas' Public
Utility Regulatory Act, citing the law as a state barrier to wireless market
entry and discriminated against wireless providers. The FCC said that the
Texas provision doesn't create a direct barrier to wireless service entry,
but has requirements that Congress intended to include within other terms
and condition of service.

** Internet **

Title: Firms File Suits Over Internet Addresses
Source: Wall Street Journal
http://wsj.com/ ((B17)
Author: Ann Davis
Issue: Internet
Description: Businesses are dismayed to learn that under new policies
governing Internet domain names, they have to file lawsuits -- often in
federal court -- to defend their "virtual turf." Michael Dever has to take
Sprint to court because Network Solutions Inc revoked his domain name
"spree.com" Mr. Dever runs an online shopping mall at this address, but
Sprint has a trademark for the "Spree Prepaid Foncard" and was convinced
consumers would confuse the online mall and Sprint products. NSI's policy is
to put a domain name on temporary hold if a valid trademark owner challenges
the name. If the current owner has a valid trademark, they get to keep the
name, but will lose it if they don't.

** FCC **

Title: Collegiality Replacing Confrontation at FCC
Source: Washington Post (C13)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/08/0541-100897-idx.html
Author: Mike Mills
Issue: FCC
Description: William E. Kennard, general counsel of the FCC, is set to
replace Reed E. Hundt as chairman. Kennard's style has been noted
in comparison with his predecessor. Richard Wiley, who was FCC chairman from
1974 to 1977, said, "He'll get along a lot better with his colleagues. It
will be a lot kinder, gentler, more collegial environment than it is right
now." Kennard has 15 years of experience in Washington's realm of
telecommunications policy, and is said to be a consensus-builder, a top-notch
litigator and dedicated civil servant. He would also be the first
African-American to run the FCC. Toni Cook-Bush, a longtime friend of
Kennard's who lobbies the agency for a local firm, said, "When people meet
with him, they feel they get a fair hearing. He's not one to rush to
judgement, where you feel like it was a waste of time to go see him."
*********

Communications-related Headlines for 10/7/97

Education Technology
USAToday: School Computers, Tools or Toys?
USAToday: Kids Need Modern Tools

Television
NTIA: Advisory Committee on Public Interest
Obligations of Digital Television Broadcasters
NYT: NBC and some powerful politicians square off
over the new ratings system
WSJ: Wal-Mart Uses TV-Set Displays For Ad Network

Cable
NYT: In Some Towns, Folks Just Say No To Cable Companies

Payphone
WSJ: Pay-Phone Operators Ring In Deregulated Era Today
WP: Pay Phone Companies Allowed to Raise Prices

Internet
WSJ: Electric Outlets Could Be Link To the Internet
WSJ: GTE Says Baby Bells, Netscape, Yahoo! Formed Internet
Yellow Pages Cartel
NYT: GTE Sues Netscape and Yahoo Over Internet Yellow Pages Access
WP: A Pressing Matter of Addressing: Who'll Decide Domains?
WP: The New Economy: Microsoft

Privacy
WP: Our Data, Our Rights
NYT: Clinton's Top Internet Advisor Says Encryption Policy Is Unformed

Ownership
WP: Straight Angle

Arts
WP: Positive Power of Writing

InfoTech
WP: How Much Technology is too much?

Anne Wells Branscomb

** Education Technology **

Title: School Computers, Tools or Toys?
Source: USA Today
http://www.usatoday.com/news/comment/nceditf.htm
Author: USA Today Editorial Staff
Issue: Education Technology
Description: Many view computers as a quick fix to our school systems
ailments. But unfortunately, not enough research is being done on how to
best use this new technology to improve learning. In order for school
systems to effectively harness communication and computer technology, the
teachers need to be trained in how to turn computers into more effective
classroom tools and curricula needs to be developed that compliments new
technological advancements. "Until more money is hot-wired for training,
the massive investment in school computers will continue to provide
disappointing returns."

Title: Kids Need Modern Tools
Source: USA Today
http://www.usatoday.com/news/comment/ncoppf.htm
Author: FCC Chairman Reed Hundt
Issue: Education Technology
Description: As we move into the 21st century, one of the great needs of our
business world is a workforce who has communication and computer technology
skills. Yet in our nations school systems, almost 90 percent of our
children have no practical access to computer communication networks. In
order for children to succeed in the 21st century economy they need to get
their hands on the tools of today. "My view is that our national commitment
to connect every classroom in every school in the country to the Internet
will be our single greatest advance in quality and equality of education in
this century."

** Television **

Title: Advisory Committee on Public Interest Obligations of Digital
Television Broadcasters
Source: NTIA
http://www.ntia.doc.gov/pubintadvcom/froct7.htm
Issue: Digital TV
Description: The Federal Register notice of the first meeting of the
Advisory Committee on Public Interest Obligations of Digital Television
Broadcasters has been released. The meeting will take place October 22-23 in
Washington, DC. The President established the Advisory Committee to advise
the Vice President on the public interest obligations of digital
broadcasters. The Committee will study and recommend which public interest
obligations should accompany broadcasters' receipt of digital television
licenses. The President designated the National Telecommunications and
Information Administration to provide secretariat services for the
Committee. [See the Committee's homepage at
http://www.ntia.doc.gov/pubintadvcom/pubint.htm and additional information
on the future of television at http://www.benton.org/Policy/TV/]

Title: NBC and some powerful politicians square off
over the new ratings system
Source: New York Times
Author: Lawrie Mifflin
Issue: V-Chip
Description: NBC and Sen. John McCain (R-AZ) are at odds over the new
television ratings system. While most tv networks began to use the
additional letters in their rating system last week, NBC has refused to do
so. Their refusal is based on their question of whether there will be "a
noticeable difference" between the new system and the one they currently
use. At this time NBC uses the "age group icons, supplemented by
full-sentence advisories (visual and audio) at the start of some shows."
Robert C. Wright, NBC's president, says "At this juncture, we feel strongly
that the additional labels merely add to parents' confusion." In response,
McCain states that "there are many families who want to know about the
content of shows, and want to use the V-chip to monitor what they watch."
Regardless of whether or not NBC's ratings system is less confusing, "they
would not be able to set off the V-chip, or electronic blocking device, which
is the reason for creating a ratings system in the first place." [For more
information on the V-Chip see http://www.benton.org/Policy/TV/#vchip and
http://www.fcc.gov/vchip/]

Title: Wal-Mart Uses TV-Set Displays For Ad Network
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Yumiko Ono
Issue: Advertising
Description: Wal-Mart has come up with a use for all those televisions in
their 1,950 stores nationwide: the Wal-Mart Television Network. The retail
giant estimates that 30 million people per week wander through their
electronic section -- so they're guessing they'll draw 20 million attentive
viewers a month to the network (hey, that's better than ABC is doing with
the yellow ad campaign, isn't it?). Programming will point shoppers to all
the wonderful stuff on sale in the store. The move mirrors other efforts to
bombard people with advertising -- in doctors' offices, health clubs,
video-rental and auto-parts stores, airports, and even some 7-11's.

** Cable **

Title: In Some Towns, Folks Just Say No To Cable Companies
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/100497cable.html
Author: Barnaby J. Feder
Issue: Cable Industry
Description: In a growing number of communities across the United States,
residents are encouraging their municipal utilities to
engage in competition with the private sector. Residents are encouraging
utility officials to start with the cable industry due to the industry's
rising rates, lack of control over local programming and slow pace at
upgrading networks. Members of smaller communities also are concerned about
their ability to obtain easy access to the Internet and other technological
advances. In addition to offering community members better cable and
communications services, municipalities are hoping to spur local economic
growth. In reaction to this new competition, cable companies have started
to cut rates and improve local service.

** Payphones **

Title: Pay-Phone Operators Ring In Deregulated Era Today
Source: Wall Street Journal
http://wsj.com/ (B4)
Author: Barbara Martinez
Issue: Telephone Regulation
Description: Pay-phone operators have been looking forward to this day as
the Federal Communications Commission has decided to "deregulate and
detariff" the service. In states that have already experimented with this, a
local phone call has risen from $0.25 to $0.35. Waiting in the wings are
decisions from the FCC on how much pay phone operators should be compensated
for calls to 800 numbers and dial-around services.

Title: Pay Phone Companies Allowed to Raise Prices
Source: Washington Post (D3)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/07/0881-100797-idx.html
Author: Mike Mills
Issue: Telephone Regulation
Description: Starting today, a new law will allow pay phone companies to
charge whatever they please for coin-operated local calls. It also allows
them to charge by the minute for local calls, something that was previously
banned. Pay phone companies argue that the $4 billion industry has
become competitive, with pay phones being operated by 2,000 independent
companies. Owners of facilities in which phones are installed can also
influence rates. Bell Atlantic Corp., which operates most of D.C.'s pay
phones has "no announcement to make as of tomorrow when the regulations
change," said spokesman Jim Smith. "We're in the process of analyzing the
very complex markets we serve."

** Internet **

Title: Electric Outlets Could Be Link To the Internet
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Guatam Naik
Issue: Infrastructure
Description: Engineers claim they have developed technology that would allow
people to make phone calls and access the Internet at high sppeds through
the electrical outlets in walls. (How fast? Like the speed of light, man).
If the technology developed by United Utilities PLC and Northern Telecom Ltd
is successful, it would transform the world's power lines into major
conduits on the information superhighway and give electrical companies easy
entree into the phone and Internet access business. The companies believe
the technology is "ready for mass market" and will announce plans at a press
conference tomorrow. "At long last, the local monopoly of the incumbent
telecom operators is about to be demolished," said a spokesman.

Title: GTE Says Baby Bells, Netscape, Yahoo! Formed Internet Yellow Pages
Cartel
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Jared Sandberg
Issue: Internet
Description: GTE is claiming that the Baby Bells (Bell Atlantic, BellSouth,
Ameritech, US West, and SBC), Netscape and Yahoo! are in "a conspiracy to
capture, control, and dominate the Internet Yellow Pages market." In a suit
filed against the companies in US District Court in Washington, DC, GTE
claims that the five Bells agreed not to compete against each other with
national Internet Yellow Pages -- opting instead to divide the nation into
their specific regions. GTE runs its own service called Superpages.

Title: GTE Sues Netscape and Yahoo Over Internet Yellow Pages Access
Source: New York Times, D10
http://www.nytimes.com/yr/mo/day/news/financial/gte-internet-suit.html
Author: Steve Lohr
Issue: Internet
Description: The GTE Corporation filed an anti-trust suit against five
regional Bell telephone companies, Netscape Communications and Yahoo Inc.
yesterday accusing them of conspiring to limit competition in the market of
on-line yellow pages. GTE contends that the Bell companies pulled together
their resources for an exclusive contract with Netscape, whose reference
section is prepared by Yahoo. Before the contract, GTE, along with other
companies, had been included in the choices offered in Nets cape's reference
section. But as of July 18, the access to GTE's online yellow pages was
cut-off, "denying the Corporation access to one of the most heavily
trafficked locations on the Internet." Geoff Potter, a spokesman for one of
the Bell companies responded that the case was "without merit", "The notion
that any 1, 2 or 10 companies could monopolize the Internet is absurd on its
face." While this dispute raises questions about the "legal ground rules
covering the sale of 'real estate' on the web, analysts and anti-trusts
experts say GTE may have a difficult time proving its case."

Title: A Pressing Matter of Addressing: Who'll Decide Domains?
Source: Washington Post (D1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/07/0771-100797-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Regulation
Description: The Internet Society of Reston, VA thinks that the process
of doling out addresses on the 'Net should be opened to competition. This
process is now largely controlled by Network Solutions, Inc. of Herndon, VA.
The society's chief exec, Donald Heath, has been advocating a global
approach to the global computer network. He has proposed adding new
suffixes like ".store" for retailers, and ".arts" for cultural groups. Under
the committee's new plan, the new and existing addresses would be handed out
by several competing firms. The process would be administered by an
internat'l committee incorporated in Switzerland. Opposition to the Internet
Society's plan say it was conceived without enough public input and places
too much power in the hands of the Internet Society, a nonprofit group of
Internet
technologists and enthusiasts.

Title: The New Economy: Microsoft
Source: Washington Post (A17)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/07/0171-100797-idx.html
Author: James K. Glassman
Issue: Internet: Economics
Description: What can be called the "New Economy" can be partly
attributed to what gov't dictates have done such as spreading free trade and
deregulating the transportation and communications industries. This has been
especially good for Microsoft, whose profits are now $3.4 billion on $11.4
billion in sales. The company has no debt and is sitting on $9 billion in
cash. The evidence of this "New Economy" can also be seen at Microsoft Corp.
itself. The culture emphasizes brainpower, flexibility, youth, hard work,
and a closeness to the customer (that's why they like to keep you on the
phone so long for support). The Microsoft Corp. culture is one that can
easily adapt to all of the rapid changes in technology. "We have directions
we're going in," says Mike Murray, the head of Microsoft's HR dept. "but
beyond that, things are constantly changing, you're always making course
corrections." Flexibility being the advantage of this company, Microsoft is
continually exploring new applications: satellites, cable TV, intranets,
voice-recognition technology, 3-D graphics, etc. They'll be spending $2
billion on research and development this year, most of it on basic research
with unknown applications.

** Privacy **

Title: Our Data, Our Rights
Source: Washington Post (A17)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/07/0151-100797-idx.html
Author: James B. Rule
Issue: Privacy
Description: We now live in a world where personal information on
"private" citizens has become a commodity for daily use in insurance sales,
aggressive marketing, credit allocation, and civil litigation. The worst
part is that personal data are subject to control by everyone but the person
depicted. For example, prescription data disclosed to pharmacists may be
"stripped" in the course of transmission to third-party payers, and thus
captured for marketing purposes. This is a classic situation where law has
failed to catch up social and technological reality. A basic legal
innovation could solve this problem: new legislation should require that no
sale or trade of personal data for any commercial purpose would be legal
without the expressed permission from the person concerned. Authorization
could also be revocable, and without it there should be the strictest of
confidentiality.

Title: Clinton's Top Internet Advisor Says Encryption Policy Is Unformed
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/100797encrypt.html
Author: Martin Nisenholtz
Issue: Encryption
Description: Ira Magaziner, President Clinton's top internet advisor,
acknowledged yesterday that the administration lacked a firm position on the
issue of encryption when he told attendants at the High Tech Forum that "We
don't have a position." In response to Clinton's recent support of a bill
"that would allow U.S. law enforcement agencies access to coded messages"
Magaziner expressed hope that "we will resolve this in a way that will allow
encryption to go forward." During his speech, he "outlined the principles
of the Administration's strategy and the issues it raised."

** Ownership **

Title: Straight Angle
Source: Washington Post (D1) (10/6/97)
http://www.washingtonpost.com/
Author: Howard Kurtz
Issue: Newspapers/Media Ownership
Description: When the Washington Blade announced that they would launch a
gay newspaper in N.Y. in a joint venture with the Manhattan-based News
Communications, there were doubts that straight corporate owners could do
justice to gay journalism. Troy Masters, publisher of a gay biweekly called
LGNY in New York, said, "There is a concern any time a corporation comes in
with big money and says its going to the terms of debate in a community.
This is about selling ads and corporatizing gay culture." But Don Michaels,
publisher of the Washington Blade and the New York Blade News, dismissed the
carping. He insists that the New York paper wouldn't be an advocacy
publication. "The gay community has moved beyond the point of disdaining
alliances with the mainstream community."

** Arts **

Title: Positive Power of Writing
Source: Washington Post (D5) (10/6/97)
http://washingtonpost.com/
Author: Diane Naughton
Issue: Arts/Health
Description: Programs like New Horizons, the Write Away project, and
Positive Plus, believe in the therapeutic effects of writing on cancer
patients, or any patient with a serious disease or trauma. James Pennebaker,
a prof. of psychology at the Univ. of Texas, says that by translating
experiences into language, people start to organize otherwise overwhelming
events, making them smaller and easier to deal with. He said, "Particularly
important, writing moves us to resolution."

** InfoTech **

Title: How Much Technology is too much?
Source: Washington Post (WashTech, pg. 19) (10/6/97)
http://www.washingtonpost.com/
Author: William Casey
Issue: Technology Advancement
Description: New advancements at Intel and IBM have raised concerns over
a "gap of delivery", or the fact that there is technology being produced
faster than we can adapt to it. It's simpler to announce great leaps in
technology than for users to realize the actual benefit. The "gap of
delivery" is discernable on 3 levels: hardware evolves faster than the
system software needed for its operation, application software like word
processing are slow to reflect the best features the operating environments
have to offer, and the disparity between computer power available in the box
and computer power actually used. Fundamental issues of productivity
shouldn't hinge on faster processors or more memory, instead it should
involve creative and efficient use of computers.

CRH is saddened to report that Anne Wells Branscomb has passed away. Mrs.
Branscomb was a communications and computer lawyer and author of Who Owns
Information? (Basic Books, 1994). In 1975 she became one of the first policy
analysts to use the term "information infrastructure," writing a paper for
the Aspen Institute, "Beyond Deregulation: Designing an Information
Infrastructure." Additional information on her life and accomplishments is
available at http://www.ngi.org/AWB/.
*********
Due to intense intra-organizational pressure, we're forced to congratulate
the Cleveland Indians this morning.

Communications-related Headlines for 10/6/97

FCC
NYT: F.C.C. to Defer Decision on Phone Deals

WorldCom/MCI: No, We're Not Done Yet
WSJ: Breaking Up BT and MCI Isn't a Done Deal Yet
WSJ: WorldCom Bid Worries Europe's Goliaths
WSJ: The Fiber Baron
WP: The Buzz Over The Bid
TelecomAM: It's Good To Talk: Getting It Out In The Open
On The WorldCom/MCI Deal
TelecomAM: Three-Way Deal? WorldCom Makes Bid Without BT

The Other Merger: Bell Atlantic/NYNEX
FCC: Bell Atlantic/NYNEX Merger

Digital Television
NYT: High-definition television:
Screens reflect back the business interests of
the executive beholder

Advertising
WSJ: IBM to Launch Global Web-Business Blitz
WSJ: Newspaper Publishers Expected to Post Higher
Earnings on Strong Ad Revenue
WSJ: Advertising Is Driving Growth at Internet Firms

America Online
WSJ: America Online Attempts to Increase Ads and
Shopping With New Software
WP: AOL Changes Channels
NYT: America Online Turns to TV as a Model

Internet Content
NYT: World Game Achieves Inventor's Vision of Global Play
NYT: Cartoons On the Web, From an Iconoclast

Journalism
NYT: Seeing Politics, and Mirrors, In the Coverage of Capitol Hill

Publishing
NYT: Black-Owned Bookstores Defend Niche

Old vs. New Media
NYT:

InfoTech
WP: Coming To a TV Near You
NYT: AT&T Cellular Phone Service To Allow Links to the Internet

** FCC **

Title: F.C.C. to Defer Decision on Phone Deals
Source: New York Times, D1, D13
http://www.nytimes.com/yr/mo/day/news/financial/fcc-kennard.html
Author: Seth Schiesel
Issue: FCC
Description: Federal Communications Commission Chairman Reed Hundt
announced that the FCC does not plan to make any decisions on whether to
allow Worldcom's bid for MCI to proceed and a challenge from AT&T to
BellSouth's petition to offer long-distance service in South Carolina until
the Senate approves the new FCC chairman and members. Hundt added that if
William Kennard's, the commission's current general council, confirmation
was delayed he would re-evaluate his position. According to people close to
the commission and on Capitol hill, "Senator Jesse Helms has made it clear
that he will consider trying to block Mr. Kennard's nomination unless Mr.
Kennard agrees to help a businessman named Zebulon Lee secure a radio
license in Asheville, NC."

** WorldCom/MCI: No, We're Not Done Yet **

Title: Breaking Up BT and MCI Isn't a Done Deal Yet
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: Steven Lipin & John Keller
Issue: Mergers
Description: The WorldCom bid for MCI looked like a slam dunk -- but not all
high percentage shots go in. MCI executives will look over the offer and
decide if a WorldCom-MCI company is better than a British Telecom-MCI
company -- and which would be better for stockholders. MCI and BT have been
working together for some time (BT owns 20% of MCI, BT has representation on
the MCI Board of Directors, and Concert Communications is a joint venture of
the two companies). It may take a lot to unravel this almost-marriage,

Title: WorldCom Bid Worries Europe's Goliaths
Source: Wall Street Journal
http://wsj.com/ (A18)
Author: Gautam Naik
Issue: Mergers
Description: If the WorldCom-MCI deal goes through, British Telecom will
lose out on the prized US market. It will also mean than large European
carriers like Deutsche Telekom and France Telecom "will have to face the
greater firepower, marketing savvy, and physical reach of a combined
WorldCom-MCI." Telcos have been preparing for the opening of the European
telecommunications market on January 1 by "striking splashy alliances with
existing carriers and new entrants." WorldCom has taken a low-key approach
-- building as much of its own infrastructure in order to cut costs. The
company is also building the underwater system will the greatest capacity --
the Gemini Cable, a mostly-Internet connection between New York and London.
Working with MCI, WorldCom could add many European corporate clients that it
has not reached yet. [See also "WorldCom's Bid for MCI Puts Global Links
Under Strain" in TelecomAM http://capitol.cappubs.com/am/ ]

Title: The Fiber Baron
Source: Wall Street Journal
http://wsj.com/ (A22)
Author: George Gilder, Seattle's Discovery Institute
Issue: Mergers
Description: WorldCom CEO Bernard Ebbers may be The Fiber Baron of the
Information Age. Gilder credits Mr. Ebbers with the vision to identify the
three key technologies of present-day telecommunications -- fiber, code
division multiple access wireless, and the Internet. Mr. Ebbers has gotten
control of two of them and may be able to parlay MCI's NextWave alliance to
become an international power in wireless, too. Forrester Research of
Cambridge estimates that if Internet traffic continues to grow at its
current pace, voice will fall to less than 1% of the total telecom traffic
by 2004. Other telcos have invested heavily in systems that are good for
voice traffic, but struggle to deliver data. Gilder calls Ebbers "a hero of
the dimensions of Rockefeller and [Michael] Milken."

Title: The Buzz Over The Bid
Source: Washington Business (Wash Tech p.12)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/06/0021-100697-idx.html
Author: Beth Berselli & Mike Mills
Issue: Corporate Communications Merger
Description: Workers at MCI Comm. Corp. expressed surprise and
speculation at the record-breaking bid of $30 billion made by Worldcom.
Concerns over the company's future, and the future of their jobs after the
merger, are running rampant through MCI's offices. Would MCI go with the
conservative Brits, the company
who made the initial bid, or would they go with upstart WorldCom? Given
the price Worldcom was offering, did MCI have a choice? But, according to
recent stock reports, the workers at MCI should have nothing but pride in
their company now. "I feel like the company is appreciated more," one
longtime employee said. Many employees also liked the fact that Worldcom is
a U.S. company. This, they say, would allow the two company cultures to mesh
easier than trying to adapt to the foreign operations of BT. There is even
more speculation over Worldcom's stock-only proposal. Raenell Herring, an
MCI contractor said, "Something funny is going on here. Where is their
money?" There are still others who express concern over another change in
direction that they believe neither MCI or Worldcom is ready for.

Title: It's Good To Talk:
Getting It Out In The Open On The WorldCom/MCI Deal
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Mergers
Description: British Telecom execs have not had strong backing from
shareholders during the bid to takeover MCI. The telecom giant has felt it
is too big to ever be taken over or bossed around. That attitude may hurt
the company which may have a great international strategy, but no one knows
about it. WorldCom shareholders, on the other hand, have turned into
"unquestioning acolytes" of CEO Bernard Ebbers as he uses WorldCom's highly
rated stock to finance deals -- deals that bring new synergies to the
company, raise the value of the stock, and leverage the next deal. The
question now is will MCI stockholders join the Ebbers fan club?

Title: Three-Way Deal? WorldCom Makes Bid Without BT
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Mergers
Description: WorldCom filed a suit against British Telecom and MCI in
Delaware last week, signaling that it may move ahead aggressively on its
takeover bid, regardless of the reactions of MCI and BT. The suit aims at
removing a poison pill designed to protect MCI from a hostile predators and
to remove a $450 million termination fee that would be payable by MCI if it
broke the terms of the agreement with BT.

** The Other Merger: Bell Atlantic/NYNEX **

Title: Bell Atlantic/NYNEX Merger
Source: FCC
http://www.fcc.gov/Speeches/Hundt/spreh758.html
Author: Chairman Reed Hundt
Issue: Mergers
Description: On Friday, FCC Chairman Reed Hundt addressed state regulators
on the Bell Atlantic/NYNEX merger: "It is my pleasure to be here - in my
final days as Chairman of the FCC - to bring together federal and state
regulators to discuss the implications of the Bell Atlantic/Nynex merger and
find ways in which we can work together to foster local competition. It was
in Philadelphia of course that our Federalism was invented. So, this is a
good place to be in order to talk about how to emphasize the virtues of our
complicated jurisdictional arrangements and how to minimize its vices."

** Digital Television **

Title: High-definition television:
Screens reflect back the business interests of the executive beholder
Source: New York Times, D5
http://www.nytimes.com/
Author: Joel Brinkley
Issue: Digital TV
Description: TV manufacturers have been conducting high-definition
television demonstrations for network executives over the past several
months. They are hoping to encourage the networks into broadcasting signals
that are compatible with the 18 formats that are part of the new digital
television system. At the same time, companies like Panasonic "want to make
it clear that they are willing to build equipment in whatever format the
networks prefer." Manufacturers are planning to put HDTVs on sale next year.

** Advertising **

Title: IBM to Launch Global Web-Business Blitz
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Raju Narisetti
Issue: Electronic Commerce/Advertising
Description: Beginning tomorrow, IBM will spend $200 million of an
advertising campaign to convince everyone that the Web is a great place to
do business. IBM is projecting that electronic business will more than
double in the next three years producing $380 million in sales. Mired in a
number of slow growth industries, IBM needs a big chunk of a growing market.
The ads will be part lecture (informing people just what the Internet and
electronic business are) and part sermon.

Title: Newspaper Publishers Expected to Post Higher Earnings on Strong Ad
Revenue
Source: Wall Street Journal
http://wsj.com/ (B7A)
Author: Jill Goldsmith
Issue: Newspapers/Advertising
Description: Newspaper publishers are expected to post better earnings than
during this period last year due to increased advertising revenue. Higher ad
revenue across different media "is a real sign that the advertising market
is white hot. When it's this hot, it doesn't usually pull back too fast,"
said Brian Oakes of Lehman Brothers. In the short-term, newspapers are
expected to do well over the rest of the year -- traditionally the biggest
for advertising. But the price of newsprint continues to soar, putting
additional pressure on the industry.

Title: Advertising Is Driving Growth at Internet Firms
Source: Wall Street Journal
http://wsj.com/ (B11B)
Author: Joelle Tessler
Issue: Internet/Advertising
Description: Internet commerce and advertising are pushing up the earnings
of Internet companies. America Online, for example, is seeing advertising
and electronic commerce revenue grow faster than subscription revenue. Even
companies that are not yet making money are narrowing their losses.

** America Online **

Title: America Online Attempts to Increase Ads and Shopping With New Software
Source: Wall Street Journal
http://wsj.com/ (B14)
Author: Jared Sandberg
Issue: Online Services
Description: Over the next few weeks, America Online will be rolling out new
software aimed at keeping customers online more -- looking at advertising
and making online purchases. To date, AOL's revenue from electronic commerce
still amounts to less than 20%. The new software "puts advertising and
commerce in context," says an AOL executive, blurring efforts to get
customers attention, informing them about products and inducing them to buy.

Title: AOL Changes Channels
Source: Washington Business (Wash Tech p.19)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/06/0131-100697-idx.html
Author: Rajiv Chandrasekaran
Issue: Online Services
Description: AOL plans to revamp its lineup of "channels", and focus on
simplifying and streamlining content in each section. Barry Schuler, the
president for creative development in AOL's network division, said, "This is
no loner a computer application. This is a new medium that has to compete
with television." Revised channels will have a slicker look with more photos
and graphics. Left sides of the screen will have links to specific areas
within a topic. The right side will present connections to constantly
changing selections of 2-3 events. On the button of a channel's main screen
will be links to the Web sites of 3 or 4 of AOL's partners. The move is
crucial now that AOL also has new software to improve navigation of the Web,
it's called "Version 4.0". "We've gone through the bushel basket and we've
selected the things that we think interest people," said Robert Jennings, a
VP for channel programming at AOL. "We're not going to be piling it on."

Title: America Online Turns to TV as a Model
Source: New York Times, D6
http://www.nytimes.com/library/cyber/week/100697aol.html
Author: Steve Lohr
Issue: Internet
Description: America Online will begin to overhaul their service next week
in an effort to attract between two and three million new subscribers over
the upcoming year. The new features are designed to strengthen AOL's role
as a primary gateway into cyberspace and to enable the company to charge
more for online banners and advertising. The services will be modeled after
television-style programming with categories like "good morning", "prime
time" and "late night". The new services will be gradually introduced to
current subscribers starting next Monday.

** Internet **

Title: World Game Achieves Inventor's Vision of Global Play
Source: CyberTimes
http://www.nytimes.com/library/cyber/week/100397netgame.html
Author: David J. Wallace
Issue: Internet Content
Description: More than 30 years ago, Buckminster Fuller envisioned a "World
Game" that would be played simultaneously on computers around the world.
The game would focus on how to solve such world problems as population,
explosion, hunger, disease and the allocation of natural resources. The one
thing that held him back was the inability to link computers together. In
August, a version of this game, called NetWorldGame, was introduced on the
World Wide Web. In this version participants "assume roles as citizens of
various nations and take on responsibilities for solving regional or local
concerns through trade, negotiation or political discussion." Medard Gabel,
executive director of the World Game Institute based in Philadelphia, said
"there's a richer data stream and a chance to play for more than a few
hours. But the downside is that you lose the social interaction. Some of
the solutions may be very good, they may be implementable in the real world.
And they may come from a high school student, a corporate lawyer or an
expert." The game was tested last year in the United Nations, Congress and
several high schools. As opposed to being viewed as just an educational
exercise, the NetWorldGame is "intended to spur real change in the status
quo." You can access the NetWorldGame at:
http://www.worldgame.org/networldgame.

Title: Cartoons On the Web, From an Iconoclast
Source: New York Times, D11
http://www.nytimes.com/library/cyber/week/100697toon.html
Author: Amy Harmon
Issue: Internet Content
Description: Ren and Stimpy are back!!! Not quite, but their originator and
cult hero, John Kricfalusi, is plotting a new cartoon revolution on the
Internet. Initially, the Microsoft Network approached Mr. Kricfalusi's
production company, Spumco, to develop a cartoon to be distributed via their
online service. After Microsoft decided to do away with much of their
entertainment programming, including Kricfalusi's cartoon, he decided to
continue forward with one of the Internet's first original cartoons and make
it available on the Spumco's web site. Kricfalusi aims to generate income
through sponsorship and cartoon paraphernalia while also offering young
cartoonists a site for promoting their work. He hopes that this new use of
the medium will "circumvent the entrenched structure of entertainment
distribution," radically changing the types of entertainment products that
receive airtime and who gets paid for what. Surfers should be able to view
Mr. Kricfalusi's cartoon starting later this month.

** Journalism **

Title: Seeing Politics, and Mirrors, In the Coverage of Capitol Hill
Source: New York Times, D1, D13
http://www.nytimes.com/yr/mo/day/news/financial/capitol-hill-media.html
Author: Melinda Henneberger
Issue: Journalism
Description: There are a growing number of news coverage services emerging
on Capitol Hill. Newspapers, newsletters and online publications are
becoming the latest source of almost instantaneous updates to our nations
policymakers and their assistants. While some services are reaching out to
readers beyond the hill, much of their coverage remains within the political
walls. There is concern by some readers that by keeping these services so
focused these services are creating an even greater level of political
isolation. "It creates this looking-glass world of mirrors reflecting more
and more off one another and less and less of the outside world," said
Representative Charles E. Schumer (D-NY). At the same time, some consumers
believe that the increased focus is positive because it makes it more
difficult for policymakers to "hide pork or plain misbehavior."

** Publishing **

Title: Black-Owned Bookstores Defend Niche
Source: New York Times, D11
http://www.nytimes.com/yr/mo/day/news/financial/black-bookstores.html
Author: Andrea Adelson
Issue: Books
Description: Providing a ray of hope for locally owned bookstore lovers, the
Phenix Information Center, a tiny bookstore in Southern California, is
applying a successful survival strategy against bookselling superstores and
discount chains. In addition to a resurgence of black authors and an
abundance of titles, owners Faron and Joann Roberts have built Phenix into
one of the nation's top-ten black bookstores by regularly attracting
high-profile black writers for speeches and booksignings. When asked how
they obtain such top-notch writers and celebrities, Mrs. Roberts said "we
put together very good proposals." In addition to their top attractions,
the Phenix serves as a "resource for black history for academics and as a
cultural hub" for the surrounding community.

** Old vs. New Media **

Title: Over the Din of New Media, a Voice for the Audio Arts
Source: New York Times, D5
http://www.nytimes.com/
Author: Laurie J. Flynn
Issue: Old vs. New Media
Description: The Audio Engineering Society, the nation's largest
organization of audio professionals, wants to bring more attention to the
world of sound technology. In an era where images are becoming larger and
stronger forces, the AES wants to point out the large role audio plays in
media experiences. "We have at least 50 percent of the multimedia
experience and less than 12 percent of the bandwidth," said Elizabeth Cohen,
president of the AES. This is a challenge given the technical issues
involved with bandwidth and other factors "that affect the quality of sound
as it moves in computer code through the sometimes narrow maze of the Net."
Another current focus in audio standards is to insure that they are "open" -
that is, making sure to allow for many compatible approaches as opposed to
favoring one particular vendor. As stated by Ms. Cohen "standards should be
things that nurture new ideas, not inhibit them."

** InfoTech **

Title: Coming To a TV Near You
Source: Washington Business (Wash Tech p.5)
http://washingtonpost.com/wp-srv/WPlate/1997-10/06/0071-100697-idx.html
Author: Jerry Knight
Issue: Infotech
Description: Circuit City is investing $140 million in Digital Video
Express, the developer of a video disc system that puts movies on CDs and
includes a built-in pay-per-view system. For consumers, this will be a new
and improved format for storing movies. People will be able to pick up a
Divx (rhymes with civics) and pay for 2-day rental period that doesn't start
until the first time the disc is played. After the 48 hours the movie
"self-destructs" and won't play again until you pay for another viewing
period. The Divx player has a built-in modem that will contact the video
store and add the second viewing session to your bill. You may keep the
disc, or throw it away. RCA, Panasonic, and Zenith will have Divx players on
the market by next spring. But, video store owners see Divx as a threat to
their survival: it will cost consumers more, but earn lower profits for
video stores. Other opposition concerns include: another possible "VHS vs.
Beta" war because just-released DVD players can't play Divx discs; the
pricing; privacy due to the modem-billing system; the pay-per-view concept;
and the possible environmental hazard of the discs themselves.

Title: AT&T Cellular Phone Service To Allow Links to the Internet
Source: New York Times, D7
http://www.nytimes.com/library/cyber/week/100697pocketnet.html
Author: John Markoff
Issue: InfoTech
Description: AT&T's Wireless Services Division plans to announce today a new
service called Pocketnet. This service will allow a cellular phone user to
tap into electronic mail and a variety of information sources via the
Internet.
*********
Let's hear it for them O's!

Communications-related Headlines for 10/3/97

Television/International
WP: Troops Seize Bosnian Serb TV Towers
WP: Bosnian Serb TV Chief Warns West

Journalism/Advertising
WP: CNN Stops Airing Ad Campaign
WSJ: *This* Is CNN?

FCC
FCC: Statement of William E. Kennard

WorldCom/MCI Merger
WSJ: WorldCom Bid Leaves MCI Few Options
WP: Worldcom Would Shift MCI's Focus
NYT: British Telecom, Outbid for MCI, Is Facing Hard Choices
NYT: MCI-Worldcom Match: They'll Fit, or Won't

Cable/Internet
WSJ: Intel and Microsoft Split Over Internet-TV Gear

Public Television
NYT: Chief Named at Corporation for Public TV

Encryption/Privacy
NYT: PGP Offers New Encryption Software for Corporations
NYT: An Attack on Privacy Rights

Radio
WP: Kids' Stations Pull The Plug

*********************************************
* Television/International *
*********************************************
Title: Troops Seize Bosnian Serb TV Towers
Source: Washington Post (A1) (10/2/97)
http://www.washingtonpost.com/
Author: Lee Hockstader
Issue: Television/International
Description: NATO-led troops seized control of 4 TV broadcasting towers
in the Serb-controlled half of Bosnia to secure balanced coverage by the
media. This move capped off weeks of contention between the state
television station and top Western military and civilian officials, who were
incensed by broadcasted propaganda against NATO and internat'l Bosnia
officials. U.S. Gen. Wesley Clark said that transmitters will be handed
over to Serb President Biljana Plasvic, someone the West favors more than war
criminal Karadzic. Officials say that they hope to make an arrangement under
which the rival Serb factions will share airtime. The seizure of the towers
have the NATO generals and Western diplomats casting themselves as media
execs determined to make an even-handed state TV station in a country that has
never had one. Ambassador Carlos Westendorp, the top Western mediator, said
"[Bosnian Serbs] are entitled to hear the truth in fair and balanced reports."

Title: Bosnian Serb TV Chief Warns West
Source: Washington Post (A36)
http://washingtonpost.com/
Author: Lee Hockstader
Issue: Media Control
Description: Miroslav Toholj issued a thinly veiled threat of retaliation
to Western peacekeepers the day after they seized control of 4 key radio
stations. "I fear there will be some uncontrolled actions and unpleasant
conditions for your soldiers and international organizations," Tohlj said.
"We won't be able to control the situation." Carlos Westerndorp, chief
western mediator, issued a statement through a spokesman justifying the
seizure. He cited Serb TV system's use of the airwaves as "both a tactical
and strategic weapon...to block the truth from the people of the Serb
Republic, and to frustrate the peace process." Westerndorp also recommended,
as one of the changes in the TV system's governing board, that Toholj must
go. Toholj asserted that the real reason for the seizure was the West's
determination to secure political gains with Serb President Bilijana Plavsic.

*********************************************
* Journalism/Advertising *
*********************************************
Title: CNN Stops Airing Ad Campaign
Source: Washington Post (B2)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/03/093l-100397-idx.html
Author: Howard Kurtz
Issue: Journalism/Advertising
Description: A heavy ad campaign about global warming aired on CNN was
pulled under order of Ted Turner, who is a known environmentalist. (Last
month Turner was talking about global warning on "Larry King Live".) After
being informed of CNN's decision, Ben Goddard, the adman who created the
ads, said, "[T]his was millions of dollars going out the door. I pointed
this out...it didn't seem to make good sense, if the ads were good enough to
run up to now." CNN spokesman Steve Haworth said that "it has been our
policy for years not to
run ads on controversial news stories that we are covering...Our principles
are worth more than the ad dollars." Yet, Goddard noted CNN ran
industry-backed "Harry and Louise" ads on health care reform (which he also
produced) while the media covered it
intensively. Haworth said that no ads would be accepted from any faction in
the controversy.

Title: *This* Is CNN?
Source: Wall Street Journal
http://wsj.com/ (A10)
Author: WSJ Editorial
Issue: Journalism/Advertising
Description: CNN has pulled ads critical of the United Nations treaty to
curb global warming. A CNN spokesman said that "inattentive viewers might
confuse the ads with news coverage and vice versa." The editorial criticizes
CNN because it did not lift issue ads during coverage of NAFTA, health care
reform, or tort reform. By CNN's logic, if the cable news channel decided
not to cover Sen Thompson's campaign finance hearings, it would accept issue
ads promoting their importance to the public. "By pulling the plug on a
responsible point of view in a public debate, CNN is circumscribing
give-and-take over" the issue.

*********************************************
* FCC *
*********************************************
Title: Statement of William E. Kennard
Source: FCC
http://www.fcc.gov/commissioners/kennard/statements/wek701.html
Author: William E. Kennard
Issue: FCC
Description: Statement of William E. Kennard at his confirmation hearing
before the United States Senate Commerce, Science, and Transportation
Committee.

*********************************************
* WorldCom/MCI Merger *
*********************************************
Title: WorldCom Bid Leaves MCI Few Options
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: John Keller
Issue: Mergers
Description: Senior executives at MCI are trying to figure out a response to
WorldCom's takeover bid. There may be little to do but negotiate with the
unsolicited suitor: 1) the WorldCom deal is $9 billion more than British
Telecom's offer, 2) it produces billions in cost savings that would not have
been seen otherwise, and 3) it will give MCI access to local networks and
Internet facilities world-wide that MCI otherwise would have had to build
itself. If MCI executives turned down WorldCom, they would have to convince
shareholders that BT's lower bid was better. WorldCom's stock continues to soar.

Title: Worldcom Would Shift MCI's Focus
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/03/134l-100397-idx.html
Author: Mike Mills
Issue: Corporate Communications Merger
Description: If Worldcom's proposed $30 bill. buyout is finalized then
MCI would focus solely on more profitable business customers and jettisoning
approx.
20 million residential long-distance customers, according to a top official
of the purchasing company. John Sidgmore, vice chairman of Worldcom, said
that customers would likely be transferred to regional Bell companies. This
set-up would have calls on Worldcom/MCI wires, but rates and billing would
set by other companies. Worldcom would be "selling" MCI customers to other
companies, who pay for rights to serve established accounts, but customers would
have the legal right not to stay with the company they were moved to. When
all of this would occur is still unknown, Worldcom would have to wait until
next year to actually buy MCI. "We're not saying [the end of the residential
service] is going to happen on day one," Sidgmore said. Initially "we're
going to market to consumers just like MCI does. On the other hand, our
strategy is not in the consumer business."

Title: MCI-Worldcom Match: They'll Fit, or Won't
Source: New York Times, C1, C6
http://www.nytimes.com/yr/mo/day/business/index.map?239,205
Author: Seth Schiesel
Issue: Mergers
Description: While Worldcom has been successful in acquiring more than a
few companies over the past five years, its record is not as impressive when
it comes to retaining their top executives. Similar questions are now being
raised in regards to the MCI management team. A response to Worldcom's
offer is expected from MCI in the next three weeks, but if a merger does go
through analysts do not expect many of MCI's executives to stay on board.
If this is the case, analysts also wonder as to whether Mr. Ebbers,
Worldcom's chair, will be able to confidently manage the corporate power.
Bryan van Dussen, an analyst for the Yankee Group, a high-technology
research firm in Boston, said "the enthusiasm for Worldcom is driven by
mergers and acquisitions and it can be difficult to assess its ability to
execute. Does Worldcom have the ability to manage the consumer base that
represents 40 percent of MCI's revenue? Does Worldcom have the ability to
manage a product line as complex as MCI's?" At the moment investors seem to
think so as both MCI and Worldcom's stock are on the rise.

Title: British Telecom, Outbid for MCI, Is Facing Hard Choices
Source: New York Times, C6
http://www.nytimes.com/yr/mo/day/news/financial/worldcom-mci.html
Author: Edmund L. Andrews
Issue: Mergers
Description: Some wonder how British Telecommunications will remain a big
player in the telecommunications field if they lose the MCI merger
opportunity. With both Deutsche Telekom and France Telecom swiftly moving
ahead in their alliance with Sprint and the EU opening telephone markets to
competition in 1998, it is understandable that there are questions being
raised. But BT appears to be confident in whatever the final outcome may
prove to be, for as an anonymous institutional investor in BT pointed out
"it is a win-win situation." BT could merge with MCI, they could continue
in an existing venture with MCI or they could sell their stake in MCI to
Worldcom "for an expected $1.7 billion profit" and look for another
telecommunications partner. BT continues to remain silent refusing to
elaborate on the one-sentence statement they offered yesterday that they are
"considering the issues."

*********************************************
* Cable/Internet *
*********************************************
Title: Intel and Microsoft Split Over Internet-TV Gear
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: Don Clark
Issue: Cable/Internet
Description: In a rare split for the personal computer duopoly, Intel is
supporting a rival technology for bringing the Internet to households
through cable set-top boxes. Intel will back the standards for digital cable
TV spearheaded by Network Computer Inc, a company owned by Microsoft rival
Oracle and Netscape. The competing groups have sent the different standards
to CableLabs, a cable research and development consortium that is soliciting
proposals for the next generation of TV set-top boxes.

*********************************************
* Public Television *
*********************************************
Title: Chief Named at Corporation for Public TV
Source: New York Times, C5
http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+69+
0++%28chief%20named%20at%20corporation%20for%20public%20tv%29%20AND%20%28%29
%20AND%20%28%29
Author: Glenn Collins
Issue: Public Television
Description: Robert T. Coonrod was "unanimously and enthusiastically" named
president and chief executive of the Corporation for Public broadcasting on
Wednesday.

*********************************************
* Encryption/Privacy *
*********************************************
Title: PGP Offers New Encryption Software for Corporations
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/100397pgp.html
Author: Peter Wayner
Issue: Encryption
Description: Pretty Good Privacy software company announced a new version
of their encryption software yesterday. This new version, called PGP for
Business Security 5.5, would "make it easier for companies to deploy
encryption throughout their organization." This key management system
allows companies to recover more rapidly from any potential industrial spy
breakthroughs, to access the files of an employee who is sick, injured or
fired, as well as offering more power to enforce corporate policy through
knowledge of employee's files.

Title: An Attack on Privacy Rights
Source: New York Times, A22
http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+23+
0++%28an%20attack%20on%20privacy%20rights%29%20AND%20%28%29%20AND%20%28%29
Author: NYTimes Editorial Staff
Issue: Encryption
Description: Last month, FBI Director, Louis Freeh, urged Congress to
outlaw the manufacturing of any encryption technology that the government
could not easily break. The bill, which quickly passed through the House
Intelligence Committee, was brought to a halt in the House Commerce
Committee due to lobbying efforts by electronic and media companies,
scientists, and privacy advocates. This bill, if made into law, would not
be effective since there is uncrackable encryption software already
available overseas. Even worse, the plan could severely cripple encryption
technology. "In a threat to privacy, the bill sets a lower legal standard
for the Government to get passwords than it must now meet to tap phone
calls. The best way to reduce many types of industrial and financial crime
is to provide citizens powerful encryption so they can communicate without
fear of corporate spies and thieves." The debate continues to move
(forward?) in regards to constitutional rights and the amount of privacy
people can expect in cyberspace.

*********************************************
* Radio *
*********************************************
Title: Kids' Stations Pull The Plug
Source: Washington Post (B1) (10/2/97)
http://washingtonpost.com/
Author: Marc Fisher
Issue: Radio
Description: The Radio Zone, an AM band children's radio show, will be
pulled off the air near the end of Nov. as the result of a buyout by Mega
Broadcasting. "Just one more unique voice snuffed out of the radio
business...we did the best we could for five years," said Virginia Carson,
the chief exec. of Capitol Kids Radio of Silver Spring, the station's owner.
The two Washington-area stations, WKDL-1050 and WKDV-1460, will be converted
to Spanish-language programming. No price has been announced. The Radio
Zone's Baltimore station, WKDB-1570 is still on the market. Many
schoolchildren and parents were moved to campaigns to save the station, but
it was just too late. The station's closure was announced on the day before,
an unusual move, but as Carson said, "We want to have some closure for the
kids. We want to leave in a responsible way."
*********
We are outta here. Have a great weekend.

WorldCom-related Headlines for 10/2/97

WorldCom Bids for MCI
WSJ: Ring Leader: WorldCom's MCI Bid Alters Playing
Field For Telecom Industry
WSJ: BT's Global Strategy Hits Wall in WorldCom Bid
WSJ: Would WorldCom-MCI Deal Lift Tolls on Net?
WSJ: WorldCom Bid Raises Question: Who's Next?
TelecomAM: WorldCom Stages $30 Billion Takeover Bid for MCI
WP: WorldCom Rising Fast by Acquisitions
WP: Upstart Rival Surprises MCI With $30 Billion Merger Bid
NYT: Upstart Offering $30 Billion To Buy MCI, Using Stock
NYT: A Long-Distance Visionary

FCC Nominees
WSJ: Senators at FCC Confirmation Hearings Press
Kennard on Telecommunications
TelecomAM: Kennard Speaks For First Time of His Vision for FCC

BellSouth/Long Distance in SC
TelecomAM: Local Rivals Say S.C. Overlooked Key Facts
in Endorsing BellSouth Interlata Bid
FCC: Brief and Affidavits in Support of Application
by BellSouth to Provide Long Distance

Internet
WSJ: Junk Mailer Cyber Gains Short Reprieve From Internet Cutoff
NYT: Are Click-Wrap Terms of Agreement Enforceable?

Television
WSJ: Pearson to Buy All American, US TV Concern

InfoTech
NYT: Bob is Dead. Long Live Bob!

*********************************************
* WorldCom Bids for MCI *
*********************************************
Title: Ring Leader: WorldCom's MCI Bid Alters Playing Field For Telecom
Industry
Source: Wall Street Journal
http://wsj.com/ (A1)
Author: Steven Lipin & John Keller
Issue: Mergers
Description: WorldCom, the nation's fourth-largest long distance provider,
unveiled a $30 billion bid to purchase MCI, a company more than three times
as large as WorldCom. WorldCom has revenues of about $7 billion/year. In
just the past three years, WorldCom has made five big deals totaling $20
billion plus a $2.4 billion stock deal to acquire Brooks Fiber Properties of
St. Louis.

Title: BT's Global Strategy Hits Wall in WorldCom Bid
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: Gautam Naik
Issue: Mergers
Description: British Telecommunications' global strategy, dubbed Concert,
may unravel with WorldCom's bid to buy MCI. BT is unlikely to match
WorldCom's bid which is worth $9 billion more. BT recently scaled back its
original offer to buy the 80% stake in MCI which it does not already own. BT
stock rose yesterday in anticipation that BT will make a profit on its 20%
share of the US's #2 long distance carrier.

Title: Would WorldCom-MCI Deal Lift Tolls on Net?
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Thomas Weber & Rebecca Quick
Issue: Mergers
Description: If WorldCom is successful in its bid to buy MCI, the resulting
company may be within reach of dominating "the innards of the Internet." The
company would control 60% of all US traffic on the global computer network
and a large share of the traffic world wide. That control could allow
WorldCom to raise prices for Internet use. Earlier this year, WorldCom
started charging small Internet service providers for connections to its
network. WorldCom's vision is to change the traditional, "funky commune"
approach to exchanging data between ISPs (called peering) and turn it into a
capitalistic one. "Ultimately, that could signal the demise of the
ubiquitous $19.95-a-month unlimited access plans."

Title: WorldCom Bid Raises Question: Who's Next?
Source: Wall Street Journal
http://wsj.com/ (C1)
Author: Susan Pulliam
Issue: Mergers
Description: On Wall Street, the hot properties are competitive local
exchange carriers (CLECs), the companies building networks to compete for
local phone customers against incumbents like GTE, Bell Atlantic and other
Baby Bells. WorldCom (an obscure teleco interest from Malaysia) has
purchased two big CLECs recently (MFS Communications and now Brooks Fiber)
and its bid for MCI has pushed up the stock for Sprint as some guess that
British Telecom may make a bid for the #3 long distance carrier.

Title: WorldCom Stages $30 Billion Takeover Bid for MCI
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Mergers
Description: WorldCom's takeover bid would result in the biggest merger in
US corporate history -- larger than Bell Atlantic/NYNEX ($25.6 billion) and
RJR Nabisco/Kohlberg Kravis Roberts ($25 billion in 1989). WorldCom's CEO
Bernie Ebbers says, "It is a superior offer to MCI shareholders to merge
with our company. We are offering a higher price, a higher premium, and a
higher performing stock than BT," Ebbers said, underscoring the "common
sense" he said the merger makes. "This is a shareholder issue. This is not a
management ego issue. This is what is best for shareholders." Referring to
MCI shareholders' interests, Ebbers was boastful of WorldCom's financial
performance since going public in 1989, especially as contrasted with BT and
MCI. "If you had invested $100 in WorldCom in 1989, it would now be worth
$3,122. That same $100 invested with BT in 1989 would be worth $190; with
MCI it would be worth $130. You aren't going to find many shareholders who
object to the kind of numbers being offered."

Title: WorldCom Rising Fast by Acquisitions
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/02/124l-100297-idx.html
Author: Paul Farhi
Issue: Telecommunications Merger
Description: Worldcom Inc., a 14-year old long distance company based in
a Southern city, has made a surprising $30 bill. bid for MCI Communications
Corp. This low-profile company is actually an aggressively expanding one,
due to many other company buyouts. Worldcom's CEO, Bernard Ebbers, wants to
place his company
at No.2 in the long distance business, with only British Telecommunications
in the way. Despite their low-key status in the game, Ebbers was confident
when he jokingly said, "After we finish the deal with MCI we might acquire BT."

Title: Upstart Rival Surprises MCI With $30 Billion Merger Bid
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/02/109l-100297-idx.html
Author: Mike Mills
Issue: Telecommunications Merger
Description: Proposing what could be known as the highest-priced merger
in history, Worldcom, a low-profile LD company based in Miss., made a
last-minute bid of $30 billion in common stock currency for Washington-based
MCI Communications Corp. in an effort to wrest it away from British
Telecomm. PLC, who also had plans to buy the company. The allure of the
offer hinges on the steady strength of Worldcom's stock. Combined, MCI and
Worldcom would become the No.2 long-distance giant, right behind AT&T. The
companies together would carry more than half of the Internet's traffic, and
be more than ready to take on the Bell regional companies. Worldcom said
that service would be unchanged, but wouldn't comment on the possibility of
layoffs at MCI. Nevertheless, the record-breaking merger has analysts
anticipating the arrival of competition in the monopolized local phone
market.

Title: A Stock Response
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/02/186l-100297-idx.html
Author: Brett D. Fromson
Issue: Telecommunications Merger
Description: Worldcom plans to buy MCI for about $30 bill. through simply
issuing more shares of common stock and then exchanging them for all the
outstanding MCI shares. This is a "deal for 90's", where common stock shares
are the currency of choice in mergers. The willingness of sellers to accept
shares in companies like Worldcom is the fuel behind this huge bid. Raghu
Ram, a telecom services analyst in N.Y. for Wheat First securities said,
"You can do a deal without any financing as long as you have currency the
other company will take, and the best telecom currency stock today is
Worldcom stock." Worldcom executives plan to exchange slightly more than one
share of Worldcom for every share of MCI. If their stock declines before the
deal is done, they would increase the number of shares to be traded for each
share of MCI, i.e. Worldcom wants to give MCI shareholders 45% of the new
company in exchange for their 100% ownership in MCI.

Title: Upstart Offering $30 Billion To Buy MCI, Using Stock
Source: New York Times, A1,D4
http://www.nytimes.com/yr/mo/day/news/financial/worldcom-mci.html
Author: Mark Landler
Issue: Telecommunications
Description: Worldcom Inc. put in an offer yesterday to buy MCI for $9
billion more than the one put forth by British Telecommunications.
Analysts believe that Worldcom's proposal could possibly pull MCI away from
a merger with British Telecommunications.

Title: A Long-Distance Visionary
Source: New York Times, D1,D4
http://www.nytimes.com/yr/mo/day/news/financial/worldcom-profile.html
Author: Steve Lhor
Issue: Telecommunications
Description: Bernard J. Ebbers, the chief executive of Worldcom Inc., has
helped pull together approximately 50 successful acquisitions to make
Worldcom the nation's fourth largest long-distance carrier. They are being
called by analyst "the communications company of the future" based on their
push to digitize telecommunications. A large part of Worldcom's recent
purchases has been based around their desire to build up a successful
digital network. "Worldcom's long-term strategy is to be an 'integrated
supercarrier,' a one-stop supplier of all manner of telecommunications
services."

*********************************************
* FCC Nominees *
*********************************************
Title: Senators at FCC Confirmation Hearings Press Kennard on
Telecommunications
Source: Wall Street Journal
http://wsj.com/ (B20)
Author: Scott Ritter
Issue: FCC
Description: At the confirmation hearing of would-be Federal Communications
Commission Chairman Bill Kennard, senators pressed for a commitment to
foster competition in the local phone market. Lawmakers are concerned with
the many mergers in the telecommunications industry -- including WorldCom's
bid for MCI -- and the rising prices for cable television service. They are
also concerned about and want to protect universal service subsidies to
ensure that phone rates for rural customers remain affordable. The Senate
Commerce Committee is expected to approve the FCC nominees on Tuesday with a
vote of the entire Senate following soon after.

Title: Kennard Speaks For First Time of His Vision for FCC
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: FCC
Description: Since many members of the Senate Commerce Committee don't like
FCC Chairman Reed Hundt (as he often whoops them playing Scrabble) there
questions the would-be chairman Bill Kennard seemed an attempt to find
differences between the two. Answering Sen John McCain (R-AZ) and Sen
Olympia Snowe (R-MA), Mr. Kennard said they would be "differences in degree
more than wholesale differences in opinion." He outlined three commitments
if he becomes chairman: 1) competition which he said must serve consumers,
2) community which is a reminder than the communications revolution must be
available to everyone, and 3) common sense -- writing rules only when
necessary and then making them clear and easy to understand.

*********************************************
* BellSouth/Long Distance in SC *
*********************************************
Title: Local Rivals Say S.C. Overlooked Key Facts in Endorsing BellSouth
Interlata Bid
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Long Distance
Description: The South Carolina Public Service Commission voted unanimously
to support BellSouth's entry into the long distance market in the state. But
competing telecos are beginning to voice their opposition. MCI, for example,
says hat of the 10,000 minutes of long distance calls terminated in the
state, just three were with a local competitor.

Title: Brief and Affidavits in Support of Application by BellSouth to
Provide Long Distance
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/in-region_applications/bellsouth/
bsappsc.html
Issue: Long Distance
Description: BellSouth is seeking FCC approval to provide long distance
service in South Carolina where it is the incumbent local service provider.
The FCC has made available the brief and four affidavits in support.

*********************************************
* Internet *
*********************************************
Title: Junk Mailer Cyber Gains Short Reprieve From Internet Cutoff
Source: Wall Street Journal
http://wsj.com/ (B20)
Author: Staff Reporter
Issue: Internet Content
Description: Cyber Promotions, a company that sends out 20 million junk
email messages a day, will have its Internet access restored by Apex Global
Internet Services after a judge ruled that the ISP had cut off service
without the 30 day advance notice stipulated by contract. Cyber Promotions
will have access until October 16; other providers -- including WorldCom
(where have I heard that name before) -- have dropped CP from there systems.

Title: Are Click-Wrap Terms of Agreement Enforceable?
Source: New York Times
http://www.nytimes.com/library/cyber/law/100297law.html
Author: Carl S. Kaplan
Issue: Internet
Description: Is it time to bite your tongue on your favorite chat line? If
the chat room in which you choose to converse has an "indemnification
clause" it might be time to think twice before engaging in unsightly typing.
Under this clause if your online victim chooses to bring a lawsuit against
you, the online provider in which you were using could turn around and sue
you as well. While many may be unaware of this policy, a variety of online
providers are now including an "indemnification clause" in their online
contracts. "The companies and others say that the clauses that put the
chatters on the hook are necessary to protect the publishers' interests
while encouraging chatters to speak responsibly. Critics, however, say such
clauses are unfair, hidden and may fail to deter reckless speech. Some
experts also questions whether the clauses are necessary or the contracts
enforceable."

*********************************************
* Television *
*********************************************
Title: Pearson to Buy All American, US TV Concern
Source: Wall Street Journal
http://wsj.com/ (B8)
Author: Helene Cooper
Issue: Television Economics/International
Description: Media giant Pearson PLC has agreed to buy All American
Communications, a Hollywood distributor of such shows as "Baywatch" and "The
Price Is Right." The deal is reportedly worth $373 million and will make
Pearson the major distributor of game shows in Europe and developing
nations. Woo, glad to know that the rest of the world will get to see the
bikini patrol.

*********************************************
* InfoTech *
*********************************************
Title: Bob is Dead. Long Live Bob!
Source: New York Times
http://www.nytimes.com/library/cyber/week/100297bob.html
Author: Laurie J. Flynn
Issue: InfoTech
Description: No, not the guy sitting in the cubicle next to you. Bob, the
technology developed by Microsoft in 1995 to make computers more personal -
literally! The program featured "cute" animated characters that showed up
on the user's screen when they pulled up windows, and would coach them
through short cuts and suggestions. Well due to a variety of annoying
aspects, soon after Bob's release he was pulled by Microsoft, executed and
left for dead. Now Microsoft is back at it again, attempting to personalize
computers with animated characters in an effort to increase communication
between user and machine. Human-factors specialist and director of
Microsoft's advanced user interface design group, Tandy Trower, says that by
"putting a personality onscreen that winks at you and can smile at you, we
are expanding the interface to allow for very natural ways for people to
share information with the computer." Although Bob was a flop, Trower says
that Microsoft has learned from its mistakes and is moving forward with
several projects that encompass the same goal.
*********

Communications-related Headlines for 10/1/97

Mergers
WSJ: WorldCom to Launch MCI Bid To Rival British Telecom's Pact
TelecomAM: FCC RELEASES FULL ORDER APPROVING MCI/BT MERGER

FCC
TelecomAM: Speak No Evil: FCC Nominees Don't Say Much During Hearing
FCC: Meet the Presidential Nominees for Members to the FCC

Arts
WSJ: Lawmakers Agree to Continue Funding NEA,
Capping Long Day of Bargaining
NYT: Personal Journey to 'Case' Chinese New-Media Art Scene

Television
WSJ: Hai-Ya! Haim Saban Morphs Into A Major Player In Kids'
Entertainment
WSJ: NBC Wins Top Place In Ratings as Networks Lose More Viewers
FCC: Technical Requirements to Enable Blocking of Video
Programming
Based on Program Ratings

Satellites
WSJ: Satellite Plans Are Registered With the FCC

Campaign Finance Reform
WSJ: Vote Against McCain. Wait, Can I Say That?

Philantropy
WSJ: A Dangerous Alms Race

Encryption
NYT: Police Versus Us: The Encryption Chasm

International
WSJ: Once Again, US Trails Europe in Cellphones
NYT: Japanese Phone Giant Buys a U.S. Stake

Lifestyles!
WSJ: The Internet Generation Taps Into Morse Code

*********************************************
* Mergers *
*********************************************
Title: WorldCom to Launch MCI Bid To Rival British Telecom's Pact
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: Steven Lipin & John Keller
Issue: Mergers
Description: The nation's fourth-largest long distance carrier, WorldCom,
will announce today an unsolicitied bid to takeover MCI. British Telecom
recently restructured its bid for MCI to total $18 billion. WorldCom will
reportedly offer $20 billion. As reported yesterday, WorldCom is close to
closing a deal to buy Brooks Fiber, a local telephone service provider. If
-- a very big IF -- WorldCom is successful in this proposed deal, it would
jump to a solid #2 in long distance assets and would have the broadest
collection of telecommunications assets.

Title: FCC RELEASES FULL ORDER APPROVING MCI/BT MERGER
Source: Telecom A.M.
http://tpg( at )cappubs.com
Author:
Issue: FCC--Merger
Description: The FCC has approved of a merger between MCI and British
Telecommunications PLC (BT). Even though it was approved on Aug 21, the
order was released on Sept. 24. The FCC approval was based on a few
conditions: BT agreed to cut its settlement rate for calls to the UK to 7
cents per min. BT and MCI must now allow customers to presubscribe to
another carrier for UK-bound long-distance and internat'l calls. Both
companies must also make their translatlantic submarine cable avaialble to
competitors. The British Gov't must agree to sever all ownership of BT as
well.

*********************************************
* FCC *
*********************************************
Title: Speak No Evil: FCC Nominees Don't Say Much During Hearing
Source: Telecom A.M.--Oct. 1, 1997
http://www.tpgweb( at )cappubs.com
Author:
Issue: FCC-Regulation
Description: Three new commissioners for the FCC were confimed on Sept.
30, 1997: Michael Powell, a scholar of telecommunications, politics and
consensus building, Gloria Tristani, the commission's link to the state
public utility commissions and rural states, and Harold Furchtgott-Roth, who
appears to be the most forthright in adhering to the Telecommunications Act.
These new commissioners did not say much duirng the hearing, which only
perplexed attendees and the media alike. But, what they did say was
definitely noteworthy, if not at all controversial. Powell was noted for
outlining his duties for the public interest. Tristani made evident some of
the issues she is already wrestling with, such as the conflict between the
FCC and state commissions over jurisdiction. Furchtgott-Roth was noted for
saying, "I will advocate a common-sense approach to regualtion at the
commission...common sense regulation is regulation that is within statutory
authority, that reflects the interest and intent of Congress, and that
benefits consumers more than it costs them." Despite the trio's vague
answers at the hearing, it would appear that they are all in good standing
with the Senate.

Title: Meet the Presidential Nominees for Members to the FCC
Source: FCC
http://www.fcc.gov/commissioners/nominees/welcome.html
Issue: FCC
Description: "One of the top news items during this most exciting year at
the FCC is President of the United States Bill Clinton's, nominations of
four outstanding Americans for Members of the Federal Commmunications
Commission. We present this homepage to introduce to the communications
community William E. Kennard, Harold W. Furchtgott-Roth, Michael Powell, and
Gloria Tristani the President's selections to take the Federal
Communications Commision into the 21st Century and beyond."

*********************************************
* Arts *
*********************************************
Title: Lawmakers Agree to Continue Funding NEA, Capping Long Day of Bargaining
Source: Wall Street Journal
http://wsj.com/ (A4)
Author: David Rogers
Issue: Arts
Description: A House-Senate conference committee agreed to fund the National
Endowement for the Arts with $98 million next year. State arts councils are
to receive 40% of grant funds and no single state may receive more than 15%
of the total assistance allocated by the NEA.

Title: Personal Journey to 'Case' Chinese New-Media Art Scene
Source: The New York Times (CyberTimes Extra)
http://www.nytime.com/library/cyber/week/100197stirfry.html
Author: Matthew Mirapaul
Issue: Information Technology ("virtual museum")
Description: "Stir-Fry" is a new Web project documenting Barbara London's
month-long trip through China's capitals in a search for previously
undiscovered new-media art. The associate curator, of the film and video
dept. at the Museum of Modern Art in N.Y., has relayed her experiences with
audio interviews and clips. This site is the latest collaboration between
MoMA and "ada'web", a Manhattan-based art site that London will maintain
when she returns. The site shows that intellectual property may be as
important a museum asset as a Picasso. London said, "The work I've seen is
naive, fresh, technically primitive for the most part...but the work here
has a pioneering feel. Western video is sophisticated, fully in command of
the media. Here, the work is simple and direct. When it's not puerile, it's
powerful."[For more on the arts online see Open Studio
http://www.openstudio.org/]

*********************************************
* Television *
*********************************************
Title: Hai-Ya! Haim Saban Morphs Into A Major Player In Kids' Entertainment
Source: Wall Street Journal
http://wsj.com/ (A1)
Author: John Lippman
Issue: Children's Television
Description: The man that brought your kids Power rangers TURBO, Saban's
Samurai Pizza Cats, and Ninja Turtles: The Next Mutation -- Haim Saban -- is
quickly becoming the "Walt Disney of the 1990s." Mr. Saban produces 21% of
all children's TV programming in the US -- second only to Time Warner (26%),
but ahead of Disney (18%). And Saban's numbers will grow with Fox Kids
Worldwide, a joint venture with News Corp. His formula? Buy a cheap foreign
product, dub it into English or remake it making sure to include "cool"
images that kids love. Many parents don't find them appealing because of the
violent content.

Title: NBC Wins Top Place In Ratings as Networks Lose More Viewers
Source: Wall Street Journal
http://wsj.com/ (B12)
Author: Staff Reporter
Issue: Television Economics
Description: General Electric's NBC was the most watched network during
premier week, Westinghouse's CBS came in second, and Walt Disney's ABC came
in third. Compared to last year, total viewership of the big four broadcast
networks is down 4% -- only News Coprs Fox gained viewers.

Title: Technical Requirements to Enable Blocking of Video Programming Based on
Program Ratings
Source: FCC
http://www.fcc.gov/Bureaus/Engineering_Technology/Notices/1997/fcc97340.txt
Issue: V-Chip
Description: "The proposals contained in this Notice of Proposed Rulemaking
are intended to
give parents the ability to block video programming that they do not want
their children to
watch. They are also intended to provide a regulatory framework that will
accommodate the
possible development and use of multiple ratings systems, giving parents the
flexibility to
choose the ratings system that best meets their needs." (Comments due ~Nov 14)

*********************************************
* Satellites *
*********************************************
Title: Satellite Plans Are Registered With the FCC
Source: Wall Street Journal
http://wsj.com/ (A10)
Author: Quentin Hardy
Issue: Satellites
Description: Even before they've started making money from their first
global systems, a number of groups are informing the Federal Communications
Commission that they have plans for "second generation" satellite systems.
The filings at the FCC are an effort to secure rights to operate in a
certain section of the radio spectrum.

*********************************************
* Campaign Finance Reform *
*********************************************
Title: Vote Against McCain. Wait, Can I Say That?
Source: Wall Street Journal
http://wsj.com/ (A22)
Author: Jonathan Rauch, editor National Review
Issue: Campaign Finance Reform
Description: For all its good press and good intentions, the McCain-Feingold
bill to reform campaign finance is bad. Private money is a big part of the
political system and if you try to suppress it in one place, it will show up
somewhere else. And you can't limit spending to communicate with voters
without violating the First Amendment.

*********************************************
* Philantropy *
*********************************************
Title: A Dangerous Alms Race
Source: Wall Street Journal
http://wsj.com/ (A22)
Author: Leslie Lenkowsky
Indiana University Center on Philantropy
Issue: Philantropy
Description: Ted Turner's $1 billion pledge to the United Nations is getting
to much attention. Even if Turner gave the entire amount at once (instead of
over the ten year period he has promised), it would amount to far less than
1% of what Americans contributed to charity last year. Most donations come
from individuals who are far from superrich and surveys suggest that
households with below median incomes give larger preportion of their money
than those who are better off. Although a big gift can draw the attention
needed to start a big campaign, "every fund-raiser knows, the bedrock of
support for schools, hospitals, museums, symphonies, social welfare
agencies, and other charitries invariably comes from large numbers of much
smaller gifts."

*********************************************
* Encryption *
*********************************************
Title: Police Versus Us: The Encryption Chasm
Source: CyberTimes
http://www.nytimes.com/library/cyber/under/100197under-wayner.html
Author: Peter Wayner
Issue: Encryption
Description: It seems that everyone who backs the Clinton Administration
plan to "rewire" the Internet for easy surveillance works for the government
and everyone who opposes it works in the private sector. "All of law
enforcement is also in total agreement on one aspect of encryption," FBI
Director Louis B. Freeh told a Congressional committee recently. "The
widespread use of uncrackable encryption will devastate our ability to fight
crime and prevent terrorism." Wayner disagrees: "In truth, crime prevention
is a partnership. Law enforcement is only the part that steps in when all
else fails. Prevention is the job of the average person, and in the private
sector, where everyday people live, where a failed deal can destroy a
business, secure encryption is as necessary as a wall safe, a strongbox and
a trustworthy bank." [For a history of encryption see "Of Keys, Decoders and
Persoanl Privacy" by Ashley Dunn
http://www.nytimes.com/library/cyber/surf/100197mind.html; for updates on
the issue see the Center for Democracy and Technology http://www.cdt.org/]

*********************************************
* Internaltional *
*********************************************
Title: Once Again, US Trails Europe in Cellphones
Source: Wall Street Journal
http://wsj.com/ (A15)
Author: Gautam Naik
Issue: Internaltional/InfoTech
Description: The third generation of cellular phones -- available in four or
five years -- will allow you to browse the Web, send a fax, check your
e-mail (where are my Headlines?), or watch a news clip...all while sitting
on a mountain or speeding along in your car (but watch out for that tree!).
In the race to control this emerging market, European companies are taking
the lead. Ericsson, for example, is already running tests on cellular phone
links that allow for video confercing.

Title: Japanese Phone Giant Buys a U.S. Stake
Source: New York Times, D2
http://www.nytimes.com/yr/mo/day/news/financial/phone.html
Author: Seth Schiesel
Issue: Telecommunications
Description: Nippon Telegraph and Telephone, one of the world's largest
telecommunications companies based in Tokyo, reported yesterday that it has
decided to invest $100 million in Teligent Inc., a small wireless
communications company. N.T.T.'s investment will allow Teligent to increase
competition in local markets. As stated by Alex Mandl, Teligent's chairman,
"by offering high-quality, high-capacity, facility based communications
services to small and medium-sized businesses in the United States, Teligent
will help fulfill the promise of the Telecommunications Act of 1996."

*********************************************
* Lifestyles! *
*********************************************
Title: The Internet Generation Taps Into Morse Code
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Anna Wilde Mathews
Issue: Lifestyles!
Description: A morse code renaisance of sorts is under way as hobbyists,
academics, and military officiers try to keep it alive with new uses. One
company sells a 100 copies/month of Morse tutorial software for Microsoft
Windows.
*********

Communications-Related Headlines for 9/29/97

FCC
NYT: At F.C.C. Confirmation Hearings, Emphasis Will Be on Competition

Advertising
NYT: Magazine Publishers Circling Wagons Against Advertisers
WSJ: Brawl Erupts over Do-Good Advertising

Media Ownership
WP: Who's Calling the Shots?

Intellectual Property
WP: Making Their Watermark On the World

Campaign Finance Reform
WSJ: How McCain-Feingold Would Alter Campaign Finance

Minorities
WP: Revving Up Their Computer Power

International
WSJ: Telecom Market In Switzerland Faces Changes
WSJ: Europeans Listening to Ads Get Free Phone Calls

*********************************************
* FCC *
*********************************************
Title: At F.C.C. Confirmation Hearings, Emphasis Will Be on Competition
Source: New York Times, D1,D10
http://www.nytimes.com/yr/mo/day/news/financial/fcc-chairman.html
Author: Seth Schiesel
Issue: FCC
Description: Confirmation hearings take place this Tuesday and Wednesday for
nominees to the Federal Communications Committee. It is expected that the
majority of the hearings will focus around competition, or lack there of, in
the telecommunications industry.

*********************************************
* Advertising *
*********************************************
Title: Magazine Publishers Circling Wagons Against Advertisers
Source: New York Times, D1,D6
http://www.nytimes.com/yr/mo/day/news/financial/mpa-conflict-media.html
Author: Robin Pogrebin
Issue: Advertising
Description: The magazine industry has decided to fight back against the
advertiser strong-arming that has been taking place recently. Last week the
Magazine Publishers of America and the American Society of Magazine Editors
joined together and issued a statement asking magazines "not to submit table
of contents, text or photos from upcoming issues to advertisers for prior
review." The statement warned that such practices may "at the very least
create the appearance of censorship and ultimately could undermine editorial
independence." Publishers and editors are hoping the statement will help to
demonstrate that they have joined forces and put advertisers on notice.

Title: Brawl Erupts over Do-Good Advertising
Source: Wall Street Journal, B1,B10
http://wsj.com/
Author: Sally Goll Beatty
Issue: Advertising
Description: Public-service campaigns are losing space in prime-time
television slots. The majority of public-service ads are now being shown
between the hours of 11pm to 7am. Although "federal law requires broadcast
licensees to act in the 'public interest, convenience and necessity'", the
law unfortunately does not spell out what that means. In an effort to fight
back, the ad industry is considering buying their own air-time. This would
allow the industry to dictate what media pieces are shown and during what
time in an effort to get messages out to targeted audiences.

*********************************************
* Media Ownership *
*********************************************
Title: Who's Calling the Shots?
Source: Washington Post (D1)
http://www.washingtonpost.com/
Author: Howard Kurtz
Issue: Media Ownership
Description: Since there is no "church-and-state" separation between press
barons and their journalistic troops, "critics invariably raise questions --
fair and otherwise -- about their stewardship." Kurtz examines a recent case
with US News & World Report's owner Mort Zuckerman, his relationship with
New York City Mayor Rudy Giuliani, and a recent cover story by the magazine
on the big Yankee fan.

*********************************************
* Intellectual Property *
*********************************************
Title: Making Their Watermark On the World
Source: Washington Post, Washington Business section p15,18
http://www.washingtonpost.com/wp-srv/WPlate/1997-09/29/012l-092997-idx.html
Author: John Burgess
Issue: Intellectual Property/Internet
Description: Artwork and other electronic creations of "intellectual
property" are now being digitally "watermarked". Although it is still in
the experimental phase the goal of this new technique is to guarantee
identification of authorship and ensure payment of use. The developers of
this technology are hoping that these stamps will open up the Internet to
artists around the world as they will no longer have to worry about theft
and mass replications. In addition to security, it will allow the user of
the image to connect to the person who holds the copyright and the creator
to keep a database of where their work is being displayed.

*********************************************
* Campaign Finance Reform *
*********************************************
Title: How McCain-Feingold Would Alter Campaign Finance
Source: Wall Street Journal, A24
http://wsj.com/
Author: John Harwood
Issue: Campaign Finance Reform
Description: The sponsor's of the bipartisan campaign-finance reform bill,
Sen. Russell Feingold (D-WI) and Sen. John McCain (R-AZ), are attempting to
increase their chances of success by getting rid of their proposal to offer
"free or reduced-price television air time for candidates who accepted
voluntary restrictions on their spending." The five remaining revisions
include: "banning soft-money donations to national political parties,
tightening restrictions on unregulated 'issue ads' by third parties,
speeding disclosures of contributions and expenses used in campaigns,
allowing nonmembers of unions who must pay dues to receive refunds for
portion spent on political activity, and barring wealthy candidates who
spend more than $50,000 of their own money from using certain funds from
their political parties." Voting on the bill will begin next month on the
Senate floor.

*********************************************
* Minorities *
*********************************************
Title: Revving Up Their Computer Power
Source: Washington Post (Wash Tech p.5)
http://www.washingtonpost.com/
Author: Michelle Singletary
Issue: Minorities
Description: In 1996, the earnings of African-American households rose 13%
to $367 billion. With these growing paychecks, these households are starting
to outspend white households (per capita) in such categories as new cars,
clothing, and computer services. Blacks per capita spent twice as much as
whites for online services last year. "The black middle class is making sure
they have access to cyberspace, especially for their kids and the
educational value it has for them," says a research firm.

*********************************************
* International *
*********************************************
Title: Telecom Market In Switzerland Faces Changes
Source: Wall Street Journal, B9H
http://wsj.com/
Author:Andreas Weber
Issue: International
Description: In three months, deregulation will take place in the 15-nation
bloc of the European Union telecom markets. Although Switzerland is not a
member of the bloc, state-owned Swiss Telecom follows an identical policy
and will thus be losing its monopoly as their local market also opens up to
competition. It is predicted that they will be facing fierce competition
since Switzerland is "the world's 12th largest telecom market with more
telephones per capita than any nation except Sweden." In an effort to
remain competitive Swiss Telecom, soon to be called Swisscom, will become a
joint-stock company on Jan. 1 "with as much as 49% of its equity being
placed publicly in the second half of 1998. The federal government will
hold the remainder in the largest privatization in Swiss history."

Title: Europeans Listening to Ads Get Free Phone Calls
Source: Wall Street Journal, B9L
http://wsj.com/
Author: Gautam Naik
Issue: International
Description: Is the telephone going to become our next medium for sales
pitching? In Sweden, the new company, Graistelefon Svenska, is offering
residential customers free local and long-distance calls to anywhere in the
country with one catch. Users of the offer will be subjected to 10-second
advertising jingles every three minutes during their phone calls.
Surprisingly enough, users of this service do not seem to mind as it saves
them money. Companies in Norway, Finland, Germany, Australia and the
Philippines are already or in the process of offering similar phone services
to their customers.

*********

Communications-related Headlines for 9/30/97

CPP welcomes Philip Henry to the Headlines team. We're now 50% bigger than
ever before -- and we ain't talking girth, baby.

Funding
NTIA: Telecommunications and Information Infrastructure
Assistance Program

Mergers
WSJ: WorldCom Nears Acquisition of Brooks Fiber
WSJ: AOL Is Sued by News Corp's Kesmai In Attempt to
Block CompuServe Deal
FCC: MCI/British Telecommunications Merger

Web Browsers
WP: A New Battle in the Browser Tug of War
WSJ: New Web Browsers Play Down TV-Channel Approach

Internet/InfoTech
WSJ: Ticketmaster Signs Accord With Intel For
"Point of View" On-Line Ticketing

Publishing
WP: Read It and Weep: Online Publishing Actually Boosts Sales
WSJ: Publishers Often Pad Circulation Figures

Advertising
NYT: Limiting Speech on Subways

Electronic Commerce
NYT: Cashless Society Put to Test in Ontario Town

Education Technology
WP: In Fairfax Schools, Hard Questions on Software Program

Computer Literacy/Jobs
WP: U.S. Shortage of High-Tech Workers

Content and Children
NYT: Helping or Confusing, TV Labels Are Widening
NYT: Dilemma for Kids' Web Sites: Separating Fun Stuff From Ads
NYT: New York Cracks Down on Child Pornography

Universal Service
FCC: Universal Service & Rural Health Care Providers

Long Distance
WSJ: Bell South Plans to Seek FCC Approval To Offer South Carolina
Long Distance

Regulation
FCC: You Say You Want A Revolution: Law vs. Progress

Campaign Finance Reform
NYT: Threat Is Seen to Campaign-Finance Bill

International
WP: TV Licenses Spark Feud in Hungary

Arts
NYT: Roy Lichtenstein, Pop Master, Dies at 73

*********************************************
* Funding *
*********************************************
Title: Telecommunications and Information Infrastructure Assistance Program
(TIIAP)
Source: NTIA
http://www.ntia.doc.gov/ntiahome/press/97tiiap.htm
Issue: Funding
Description: Vice President Al Gore and Commerce Secretary William Daley
announced the award of $20.9 million in federal matching grants by NTIA's
Telecommunications and Information Infrastructure Assistance Program
(TIIAP). The grants help bring the benefits of the Information Age to all
Americans, particularly those living in rural and underserved inner city
areas. Fifty-five public institutions in 38 states and the District of
Columbia have been selected to receive the grants.

*********************************************
* Mergers *
*********************************************
Title: WorldCom Nears Acquisition of Brooks Fiber
Source: Wall Street Journal
http://wsj.com/ (A4)
Author: Steven Lipin
Issue: Mergers
Description: The nation's fourth largest long distance provider, WorldCom,
is back in the headlines with a reported deal to purchase Brooks Fiber, a
fast growing local telephone service provider. Brooks has 44 networks in
operation or under construction. WorldCom recently acquired CompuServe Corp
for its high-speed networking division and swapped the online service
providers individual customer's for America Online's networking division,
ANS Communications.

Title: AOL Is Sued by News Corp's Kesmai In Attempt to Block CompuServe Deal
Source: Wall Street Journal
http://wsj.com/ (B10)
Author: Jared Sandberg
Issue: Online Services/Mergers
Description: Kesmai Corp, a unit of Rupert Murdoch's News Corp, is suing
America Online, claiming aintitrust violations and seeking to block the
acquisition of CompuServe's member base. Kesmai makes online computer games
which it offers to AOL and other online services. AOL recently changed its
game area, adding games it produces. Usage of Kesmai games dropped by as
much as 92%. In its suit, Kesmai is saying that AOL is trying to conduct an
"illegal merger," is "engaged in a course of conduct designed to defraud and
destroy Kesmai," and is abusing its "monopoly power."

Title: MCI/British Telecommunications Merger
Source: FCC
http://www.fcc.gov/Bureaus/International/Orders/1997/fcc97302.html
Issue: Mergers
Description: FCC Releases Memorandum Opinion and Order ( FCC 97-302,
GN-96-245 ) Granting Merger of MCI Communications Corporation and British
Telecommunications plc

*********************************************
* Web Browsers *
*********************************************
Title: A New Battle in the Browser Tug of War
Source: Washington Post (C1)
http://www.washingtonpost.com
Author: Elizabeth Corcoran
Issue: Internet Service Providers
Description: Bill Gates, chairman of Microsoft Corp., will be unveiling
Internet Explorer 4.0, Microsoft's latest software for browsing the
World Wide Web. "IE 4.0" looks to be Microsoft's most potent campaign to grab
the rest of the browser market, 64% of which is now controlled by Netscape
Communications Corp. Microsoft plans to initially give away the program if
downloaded from the Web, which can overhaul the look of a PC by
weaving in the World Wide Web. Microsoft plans to sell IE 4.0 in October, but
no price has been announced. Some say that this tactic is unfair. Jamie
Love, who directs the Consumer Project on Technology, wants the
government to take antitrust action against Microsoft. The company has
packed the program with amazing features which involve "channels" that are
being sponsored by about 500 companies like Walt Disney, Time Warner, and
the Wall Street Journal. "It's probably one of the best bargains in
software history," said Yusef Medhi, the director of marketing for the
Internet software division at Microsoft. For now, Microsoft doesn't mind not
making money on what some analysts call a "big, monster program". "The
important thing for us is that it drives the sales of everything else."

Title: New Web Browsers Play Down TV-Channel Approach
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: David Bank
Issue: Info Tech
Description: Less than a year ago, "push" technology was all the rage for
Internet browsers. The technology allows publishers to automatically deliver
features such as stock quotes, news and advertising to individual PCs. But
now that "push" is here, many people don't seem to want it and Microsoft and
Netscape are distancing themselves from the hype. Many corporate technology
managers are concerned that the steady stream of downloaded data could slow
down internal networks.

*********************************************
* Internet/InfoTech *
*********************************************
Title: Ticketmaster Signs Accord With Intel For "Point of View" On-Line
Ticketing
Source: Wall Street Journal
http://wsj.com/ (B10)
Author: Bruce Orwall
Issue: Info Tech
Description: Ticketmaster has signed an agreement with computer chip maker
Intel to develop technology that would allow online ticket buyers to see the
view of the stage or field from the seats they are purchasing. The
technology is to be in place starting this spring for the 100 biggest venues
that Ticketmaster serves. The technology will also allow buyers to
pre-purchase food that could then be deliver to their seats during the game
or concert.

*********************************************
* Publishing *
*********************************************
Title: Read It and Weep: Online Publishing Actually Boosts Sales
Source: Washington Post (C1)
http://www.washingtonpost.com
Author: Beth Berselli
Issue: Internet Sales and Services (Books)
Description: A Washington publisher, Nat'l Academy Press, posted 1,700 of
its current titles on the Internet, letting everyone read for free. The
result was a 17% sales increase in sales the following year. NAP found that
whetting a reader's appetite was best done through cyberspace, especially
since reading an entire book online just isn't a pleasureable experience for
the eyes. Once a reader was curious enough, they would then
offer up their credit cards. "Electronic book publishing" is largely an
infant business, with concerns over start-up costs, copyrights, and the
basic belief that freebies will hurt sales. Barbara Kline Pope, director of
NAP, regards online publishing as "the same as a bookstore, with
people...browsing." Despite these concerns, electronic publishing is slowly
gaining acceptance, especially as a marketing tool. But, what is most
important is that the readers will benefit. Scott Lubeck, NAP's former
director, who initiated the project in 1994, said, "They will never have to
worry that a book won't be available."

Title: Publishers Often Pad Circulation Figures
Source: Wall Street Journal
http://wsj.com/ (B10)
Author: Patrick Reilly & Ernest Beck
Issue: Publishing/Advertising
Description: Amid recent reports that an Anglo-Dutch publishing giant
inflated circulation numbers, US marketing veterans are saying that such
numbers are overstated more often than people think. Publishers often
overpromise the circulation they can deliver and then make it up with cash
payments or "make-good" ad space. Circulation numbers are used to set the
price for advertising space.

*********************************************
* Advertising *
*********************************************
Title: Limiting Speech on Subways
Source: New York Times, A34
http://www.nytimes.com/yr/mo/day/editorial/index.map?150,151
Author: Editorial Staff
Issue: Advertising
Description: What? No more Calvin Klein Underwear ads? In a meeting being
held in New York today, the Metropolitan Transportation Authority's board is
scheduled to vote on changes to the agencies advertising standards. In the
name of protecting transit riders from sexually explicit advertisements,
vague new guidelines are being proposed which could bar many types of legally
permissible ads from being displayed on buses and subways. In reaction to
criticism, the M.T.A. claims that the selling of promotional space is a
commercial venture which justifies their right to reject material that they
think is unfit for certain segments of their transit passengers.

*********************************************
* Electronic Commerce *
*********************************************
Title: Cashless Society Put to Test in Ontario Town
Source: New York Times, D2
http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+1
0+0++%28cashless%20society%20put%20to%20test%20in%20ontario%29%20OR%20%28%29
%20OR%20%28%29
Author: Editorial Staff
Issue: Electronic Commerce
Description: "Smart cards" are being tested for the first time in North
America. Residents of Guelph, Ontario are participating in a community-wide
test where they can use these cards for small cash transactions. While
Mondex, an international British financial company who distributed the cards
in Canada, has been having a difficult time bringing consumers over to the
"smart card" mentality, those who have converted appear to be addicted.
Merchants don't have to count, stack and bundle at the end of the day and
consumers can leave home with only an electronic cash card in their pocket
as opposed to bulky dollar bills and coins. "Unlike credit or debit cards,
which need to connect to a central network, the chip-based Mondex cards
carry all the information needed to make a transaction. Cash value can be
loaded at an automated teller machine, or by using a specially outfitted
telephone." A similar experiment will be coming to New York's Upper West
Side on October 6.

*********************************************
* Education Technology *
*********************************************
Title: In Fairfax Schools, Hard Questions on Software Program
Source: Washington Post (B1)
http://www.washingtonpost.com
Author: Victoria Benning
Issue: Education Technology
Description: "Successmaker", a software program being used in 15 Fairfax
elementary schools as well as a growing number of schools nationwide, drills
students in all basic subjects. It keeps track of how long it takes for each
child to answer a question and provides individualized homework assignments,
letting students move through the curriculum at different speeds. But, while
educators and parents greatly support this new program, school officials
turned down a proposal to place the program in all 45 of Fairfax's
elementary schools on the county's eastern end. School administrators were
concerned about the cost, about $55,000, and the educational value, claiming
that its drills were a superficial style of teaching. Marianne O'Brien,
Fairfax's technology coordinator, said, "We just aren't sure it makes enough
difference to justify the cost... there are other things we'd rather do with
that money--like give more students access to technology and do more
creative things with it."

*********************************************
* Computer Literacy/Jobs *
*********************************************
Title: U.S. Shortage of High-Tech Workers
Source: Washington Post (C3)
http://www.washingtonpost.com
Author: Rajiv Chandrasekaran
Issue: Computer Literacy/Jobs
Description: The Commerce Dept. issued its first warning that a growing
shortage of workers with cutting-edge computer skills could hinder the
nation's economic growth. In that warning officials said that the Commerce
and Education departments would work with the technology industry to jointly
propose solutions to the labor shortage through a series of task forces and
a nationwide summit to be held next year. Andrew Pincus, the Commerce
Department's general counsel, said that the shortage "is increasing the cost
of doing business throughout this country and reducing our global
competitiveness and constraining our economic growth." The report the
department released included information gathered by the Information
Technology Association of America (ITAA), which estimated about 190,000
information technology jobs nationwide that are unfilled. Skeptics of the
report's estimates contend that these companies aren't doing enough to
attract and train workers with basic computer skills. Norm Matloff, a
computer science professor at the Univ. of California at Davis, said, "The
report is a tool of special interests...the industry is not willing to train
people or give them a chance to pick up those skills on the job."

*********************************************
* Content and Children *
*********************************************
Title: Helping or Confusing, TV Labels Are Widening
Source::New York Times, B1, B8
http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+37
+0++%28tv%20labels%29%20OR%20%28%29%20OR%20%28%29
Author: Lawrie Mifflin
Issue: V-Chip
Description: Beginning tomorrow, most television networks across the U.S.
will add new labels to the already existing TV-G, TV-PG, TV-14 and TV-MA.
The new labels will be D, L, S and V, standing for suggestive dialogue,
course language, sex and violence. While there are basic guidelines, there
is no set way for determining what type of material denotes which rating as
each program is open to subjective interpretation. The system has been
designed to work with a computer V-chip which will allow viewers to block
programs with certain ratings. Under Federal law, this chip will be
installed in all newly produced television sets starting in 1998. [There
will be no warnings if tofu will appear in during the program]

Title: Dilemma for Kids' Web Sites: Separating Fun Stuff From Ads
Source: New York Times, CyberTimes
http://search.nytimes.com/books/search/bin/fastweb?getdoc+cyber-lib+cyber-
lib+17461+0++dilemma%20for%20Kids%27%20Web%20Sites
Author: Pamela Mendels
Issue: WWW
Description: One of the big questions facing companies that focus on the
online children's market is how to attract advertisers while assuring
parents that their kids are not being deceived by ads and promotions. Many
are considering labeling advertisements so their young users will be able to
easily identify promotions from website content. Others are considering
more unusual ways of generating income so they can provide sites that are
virtually ad-free. The main goal for commercial children's Web site
operators is to come up with ways to sustain the company without forfeiting
an online site where kids can learn and have fun.

Title: New York Cracks Down on Child Pornography
Source: The New York Times
http://www.nytimes.com/library/cyber/week/093097porn.html
Author: Seth Schiesel
Issue: Internet Regulation
Description: The New York state general attorney, Dennis Vacco, announced
on Monday that his office has identified more than 1,500 people worldwide
who are suspected of trafficking in illegal child pornography over the
Internet. The U.S. Customs Service cooperated in the 18-month investigation,
which led to 34 arrests. Subsequently, 90 other people have been referred
for prosecution in Arizona, Michigan, Germany, and Britain, according to
Chris McKenna, Vacco's spokesman. Vacco added a collection of images that he
said, "would be the envy of pedophiles worldwide, with over 200,000 seperate
images." The electronic possession or transmission of child pornography is
illegal under federal law in 18 states, including New York.

*********************************************
* Universal Service *
*********************************************
Title: Universal Service & Rural Health Care Providers
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1997/da972039.html
Issue: Universal Service
Description: Workshop on Draft Application Form for Rural Health Care
Providers Applying for Universal Service Support to be Held September 30
from 9:00 a.m.-12:00 noon in the Commission Meeting Room, 1919 M Street,
N.W., Room 856, Washington, D.C. Interested parties may attend the workshop.
The workshop also will be recorded on video, and copies of the videotape
will be available in the Commission's Reference Room, 1919 M Street, N.W.,
Room 239, Washington, D.C. 20554. [Listen on the Internet at
http://www.fcc.gov/realaudio/] Draft forms available at
http://www.fcc.gov/formpage.html#hc]

*********************************************
* Long Distance *
*********************************************
Title: Bell South Plans to Seek FCC Approval To Offer South Carolina Long
Distance
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Leslie Cauley
Issue: Long Distance
Description: BellSouth plans to seek Federal Communications Commission
approval to start offering long distance in one the local service provider's
home markets, South Carolina. Bell South contends that it has opening up
this market for competition, but competitors have failed to enter the
market. South Carolina telephone regulators have approved BellSouth's plan
finding that AT&T and other large carriers have no plans to offer local
service in the primarily rural state.

*********************************************
* Regulation *
*********************************************
Title: You Say You Want A Revolution: Law vs. Progress
Source: FCC
http://www.fcc.gov/Speeches/Hundt/spreh757.html
Author: Reed Hundt
Issue: Regulation
Description: "We need you to figure out: how to make democracy possible in a
digital age; how the path of the common good can be taken in a media-induced
and lawyer-created fog of criticism and complexity; how America can export a
wealth-creating, fairness-engendering, happiness-facilitating system of
governance to the world; and how to solve the problems of poverty, disease,
global warming, inequality of opportunity."

*********************************************
* Campaign Finance Reform *
*********************************************
Title: Threat Is Seen to Campaign-Finance Bill
Source: New York Times, A22
http://www.nytimes.com/yr/mo/day/politics/index.map?66,118
Author: Eric Schmitt
Issue: Campaign Finance Reform
Description: Majority leader Sen. Trent Lott proposed an amendment to the
campaign-finance reform legislation yesterday that Democrats claim would
kill the bill. "The provision would prohibit unions from deducting dues
from union and non-union workers for political activity without their
permission. The change would significantly curtail a union's ability to
raise money for political purposes. Because unions endorse Democratic
candidates far more often then they endorse Republicans, most Democrats have
vowed to vote against any campaign-finance bill that includes this
provision. Many Republicans oppose overhauling the country's
election-financing system and would be delighted to see it die on the floor."

*********************************************
* International *
*********************************************
Title: TV Licenses Spark Feud in Hungary
Source: Washington Post (A17)
http://www.washingtonpost.com
Author: Christine Spolar
Issue: International
Description: There is a court battle going on over the privatization of
Hungary's airwaves. Central European Media Enterprises, or CME, claims that
the Nat'l Radio and Television Commission broke the law by giving broadcast
licenses to two European media groups that offered lower bids. CME did
offer $20 million more than its competitors for the 10-year licenses, but
broadcast commissioners were looking for more than money in creating the
first private stations in Hungary. Mihaly Revesz, the head of the
seven-member commission, said, "This is Eastern Europe, and here people are
always suspecting politics or corruption to explain things...in this case
I'm comfortable with the broadcast landscape." There has been a nearly
2-year old media law in place to regulate how these licenses could be sold
without political influence, yet still spawned speculation about possible
political deals and the integrity of the licensing process.

*********************************************
* Arts *
*********************************************
Title: Roy Lichtenstein, Pop Master, Dies at 73
Source: New York Times, A1, D31
http://www.nytimes.com/yr/mo/day/news/national/obit-lichtenstein.3.jpg.html
Author: Michael Kimmelman
Issue: Arts
Description: Roy Lichtenstein, a major figure in American art since his
debut at the Leo Castelli Gallery in Manhattan in 1962, died yesterday at
the age of 73 due to complications from pneumonia. Lichtenstein's art was
quintessentially pop as he produced works that mimicked the flat colors,
bold lines and dots found in the funny pages. He mixed image and text,
using a strategy of appropriation which helped to pave the way for some of
the techniques used by today's younger artists. Remaining within his own
style he managed to keep up with the times coupling 1990's irony with 1960's
imagery. The painter Larry Rivers described Lichtenstein as a person who
"got the hand out of art, and put the brain in."
*********

Communications-related Headlines for 9/26/97

Philanthropy
NYT: New Grants to Finance Sites That Embrace Points of View

Spectrum Auction Decision
WSJ: FCC Plan to Aid Wireless Carriers Is
Tougher Than Firms Hoped For
WP: FCC Votes Breaks For Auction Bidders
TelecomAM: FCC Resolves Thorny Payment Issue for C-Block Auctions
NYT: F.C.C. Offers New Options On Wireless

FCC
TelecomAM: McCain Predicts Easy Confirmation, But Group Poses
Questions To Ask

Encryption
WSJ: Washington May Crash the Internet Economy
TelecomAM: House Rebuffs FBI On Encryption

Competition
TelecomAM: Customers' Time Crucial Commodity in CLECs Move Forward
TelecomAM: Super CLEC: McLeodUSA Completes Takeover of Consolidated
FCC: FCC Seeks Comments On CMRS "Calling Party Pays" Service
Option
TelecomAM: McCain Outlines Needed Changes for Competition

V-Chip:
FCC: FCC Proposes Technical Requirements to Enable
Blocking of Video Programming Based On Program Ratings

Religion
NYT: 2 Advertisers End Sponsorship of an ABC Show

Online Services
NYT: Prodigy Splitting Itself Into 3 Business Units

Arts
NYT: Clinton Awards Medals In Arts and Humanities

*********************************************
* Philanthropy *
*********************************************
Title: New Grants to Finance Sites That Embrace Points of View
Source: CyberTimes
http://www.nytimes.com/library/cyber/week/092697fund.html
Author: Lisa Napoli
Issue: Philanthropy
Description: The creator of the POV documentary series and PBS have formed a
new agency called the Web Development Fund that will make grants to fund Web
sites that mix innovation with social conscience. Grants will be up to
$50,000/each. The Fund is already soliciting online proposals from groups
and individuals. All projects financed by the grants will be housed on the
PBS Web site and will be given promotional assistance. [See PBS
http://www.pbs.org/, Web Development Fund http://www.pbs.org/weblab, and
POV http://www.pov.org/]

*********************************************
* Spectrum Auction Decision *
*********************************************
Title: FCC Plan to Aid Wireless Carriers Is
Tougher Than Firms Hoped For
Source: Wall Street Journal
http://wsj.com/ (B5)
Author: Stephanie Mehta & John Wilke
Issue: Spectrum
Description: The Federal Communications Commission adopted a four-choice
plan to help beleaguered winners of a spectrum auction. Under the plan, none
of the winners would have to restart paying the FCC for licenses until March
31 when foreign backers will be allowed to invest. The four options include:
1) sticking with the original payment plan; 2) amnesty with a return of
licenses and a forfeiture of downpayments; 3) return of half of the licenses
for a forgiveness of half the debt; or 4) a "full-buyout" offer which would
allow a licensee to pay for anything they can afford immediately. In any
case, any returned spectrum will be reauctioned.

Title: FCC Votes Breaks For Auction Bidders
Source: Washington Post (G1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-09/26/068l-092697-idx.html
Author: Mike Mills
Issue: Spectrum
Description: No sooner than the FCC acted to help spectrum auction winners
critics piped in that the Commissioners had not done enough. "This is like
throwing someone a lifeline that's too short for them to reach," said an
attorney for several of the licensees. There was also dissent from Congress:
"The commission mangled a fair and sensible plan supported by its chairman
and several members of Congress that would have avoided defaults and
bankruptcy litigation," said Rep John Dingell (D-MI). Chairman Hundt clashed
with the other commissioners on option 4 (see WSJ story) that was devised by
one of the licensees and suggested by Rep Billy Tauzin (R-LA) and Rep Ed
Markey (D-MA). In the adopted plan, bidders who choose to pay for some
licenses now in a lump sum will only be able to apply 70% of the downpayment
they have already paid -- Chairman Hundt had wanted to credit the full 100%.
The commissioners claimed to be preserving the integrity of future options,
but "This was ll about sticking it to Reed," said a staffer to the outgoing
Chairman.

Title: FCC Resolves Thorny Payment Issue for C-Block Auctions
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Spectrum
Description: Commissioners Rachelle Chong, Susan Ness, and James Quello
wanted the FCC to simply revoke the licenses of companies who defaulted on
payments, but Chairman Red Hundt suggested a more lenient approach. The
compromise was the four options outlined above (see WSJ article).
[See the FCC press release
http://www.fcc.gov/Bureaus/Wireless/News_Releases/1997/nrwl7041.html,
Chairman Hundt's remarks http://www.fcc.gov/Speeches/Hundt/rh-cblck.html,
and Commissioner Ness' remarks
http://www.fcc.gov/Speeches/Ness/States/sn-cblck.html]

Title: F.C.C. Offers New Options On Wireless
Source: New York Times (C1)
http://www.nytimes.com/yr/mo/day/news/financial/fcc-wireless.html
Author: Mark Landler
Issue: Spectrum
Description: The Federal Communications Commission is offering a break for
those bidders who claim they cannot pay for their wireless-communications
licenses. The F.C.C. approved a plan yesterday which offers these companies
the option of either returning their licenses, returning a portion of their
licenses, or using a percentage of their initial payments to purchase as
many licenses as they can afford at this time. The companies being offered
the menu of options are those who purchased licenses during the FCC
C-block auctions. These auctions offered a new type of
wireless-communication service, called Personal Communications Service.
Many of the companies needing a break placed bids that were too high for
them to handle throwing them into financial trouble soon after the auctions
ended.

*********************************************
* FCC *
*********************************************
Title: McCain Predicts Easy Confirmation, But Group Poses Questions To Ask
Source: Telecom A.M.
Issue: Communications (Federal Communications Commission)
Description: As Sen. John McCain, R.-AZ and chairman of the Senate Commerce,
Science and Transportation Committee, prepares to question the nominees for
the F.C.C. during their confirmation hearings next week, he has been sent a
letter from six telecom policy experts containing four areas that they think
should be addressed. These experts outline questions on competition,
deregulation, free speech, and the size of the F.C.C. At a luncheon
yesterday, McCain stated that "he does not plan to grill the nominees on
issues pending in front of the commission, but instead will stick to more
general telecom issues". He is satisfied with the nominees and doesn't
think they will have any difficulties getting through the confirmation process.

*********************************************
* Encryption *
*********************************************
Title: Washington May Crash the Internet Economy
Source: Wall Street Journal
http://wsj.com/ (A22)
Author: Jim Barksdale, CEO Netscape
Issue: Encryption/Electronic Commerce
Description: The Internet needs more security, but legislation currently
under consideration in Congress may actually result in less secure
communication. The FBI wants to limit the use of "strong" encryption in the
United States by requiring software makers "to provide the government with
immediate access to the information in a computer or a network without the
knowledge of the owner or user of the computer." Programmers may not be able
to do this unless they offer no security at all. The US dominates 75% of the
global software market and roughly the same percentage of the global
Internet economy. The proposed legislation could end this economic
phenomenon overnight.

Title: House Rebuffs FBI On Encryption
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Encryption
Description: The House Commerce Committee rejected the FBI's plan to require
that software in the US be "decryptable" when required by court order. There
will be another showdown on the controversial legislation as House Rules
Committee Chairman Gerald Solomon (R-NY) has pledged not to allow an
encryption bill on the House floor without the unscrambling provisions. The
Commerce Committee adopted an alternative plan, supported by the electronics
industry, that would set up a new, high-tech research center at the
Department of Justice. The center would help law enforcement officials break
complicated computer codes.

*********************************************
* Competition *
*********************************************
Title: Customers' Time Crucial Commodity in CLECs Move Forward
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Competition
Description: At a conference discussing competitive local exchange carriers
(CLECs), three themes surfaced: Customers' time is now the crucial commodity
to be considered when formulating products, services and strategies;
'me-too' players will perish in a competitive marketplace; and, even as
technology explodes, the old-fashioned tenets of salesmanship and customer
service never wane in importance. In a keynote address, George Gilder said,
"Every era is defined by a key scarcity and a key abundance. This is the
information age. In contrast to the past, there's no scarcity of information
-- there's a glut of it; there's too much of it. What is scarce is time --
customers' time. The end result is that, as technology expands, it
conflicts, naturally, with the physical limitations of time and the speed
with which information can be delivered. Bridging that gap will be our most
important challenge....Bandwidth is going to grow explosively over the next
10 years. This is largely an assertion of faith, but I believe it will grow
at twice the rate of Moor's Law [the principle that the capacity of
microchips doubles every 18 months]."

Title: Super CLEC: McLeodUSA Completes Takeover of Consolidated
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Competition/Mergers
Description: McLeodUSA has completed its merger with Consolidated
Communications Inc. The new McLeodUSA is a 14-state facilities-oriented
telecommunications provider with more than 207,000 local lines, 4,500
employees, and 12 million competitive phone directories/yr. The company
serves business and residential customers in the upper Midwest.

Title: FCC Seeks Comments On CMRS "Calling Party Pays" Service Option
Source: FCC
http://www.fcc.gov/Bureaus/Wireless/News_Releases/1997/nrwl7040.html
Issue: Telephone Regulation
Description: The FCC has issued a Notice of Inquiry regarding Calling Party
Pays (CPP), a service option provided by selected Commercial Mobile Radio
Service (CMRS) carriers to their customers, but not widely available in the
United States. The FCC said the purpose of this inquiry is to explore
whether Calling Party Pays could serve as one means of promoting and
expanding competition in the local exchange telephone market. The Commission
is committed to taking the necessary actions to increase consumer options
for local telephone service. CPP is a service billing option, currently
provided by some cellular, paging, and Personal Communications Service (PCS)
carriers, in which the party placing the call or page pays the airtime
charge and any other applicable charges. In order for a CMRS provider to
offer CPP to its customers, the local exchange carrier (LEC) on whose
facilities the call generally originates must agree to bill the calling
party on behalf of the CMRS carrier or must furnish the CMRS carrier with
sufficient billing information to enable the CMRS carrier to bill the
calling party directly.

Title: USTA Luncheon: Sen. McCain Outlines Needed Changes for Competition
Source: Telecom A.M.
Issue: Communications
Description: At a luncheon sponsored by the United States Telephone
Association (USTA) yesterday, keynote speaker Sen. John McCain (R-AZ),
chairman of the Senate Commerce, Science and Transportation Committee, spoke
about the Telecommunications Act. "In my judgement, there's a lot that needs
changing. I intend to do whatever is necessary to fix the problems that
currently exist. The
fundamental problem with Telecom Act implementation to date is that
regulation just isn't in sync with reality. As a result, the industries
chafe and sue, the growth of competition is slow, and consumers are losing
out on the lower rates and better services they were promised when the Act
was passed." McCain stressed that no company to date has met the
requirements of section
271 of the Telecom Act and this should be addressed and changed so that
companies can have a more reasonable "market to open competition".

*********************************************
* V-Chip *
*********************************************
Title: FCC Proposes Technical Requirements to Enable Blocking
of Video Programming Based On Program Ratings
Source: FCC
http://www.fcc.gov/Bureaus/Engineering_Technology/News_Releases/1997/nret70
13.html
Issue: V-Chip
Description: The FCC today began the process that would require that most
television receivers be equipped with features that enable viewers to block
the display of video programming based on program ratings. The Notice of
Proposed Rulemaking adopted by the Commission today responds to the Parental
Choice in Television Programming requirements contained in Sections
551(c),(d), and (e) of the Telecommunications Act of 1996. In the
Telecommunications Act, Congress determined that parents should be provided
with timely information about the nature of upcoming video programming, and
with the technological tools that would allow them to block violent, sexual,
or other programming that they do not want their children to watch.

*********************************************
* Religion *
*********************************************
Title: 2 Advertisers End Sponsorship of an ABC Show
Source: New York Times (C4)
http://www.nytimes.com/yr/mo/day/news/arts/tv-sacred-sponsors.html
Author: Bernard Weinraub
Issue: Religion
Description: Following a campaign led by the Catholic League, two
advertising sponsors have withdrawn from the ABC television series "Nothing
Sacred". The show, which has received positive reviews, is about a hip and
handsome young Roman-Catholic priest who is rather ambivalent about church
doctrine on issues such as celibacy and abortion. The two companies,
American Isuzu Motors and the Weight Watchers International unit of the H.J.
Heinz Company, said they chose to pull away based on responses they received
from the public.

*********************************************
* Online Services *
*********************************************
Title: Prodigy Splitting Itself Into 3 Business Units
Source: New York Times (C17)
http://www.nytimes.com/
Author: Bloomburg news,
Issue: Online Services
Description: Prodigy has split! Into three separate units that is. These
units will allow Prodigy to give individual focus to its online service,
software development and services, and international market.

*********************************************
* Arts *
*********************************************
Title: Clinton Awards Medals In Arts and Humanities
Source: New York Times (B27)
http://www.nytimes.com/
Author: Dinitia Smith,
Issue: Arts
Description: The White House announced yesterday this year's winners of the
National Medal of Arts and National Humanities Medal. The winners are
chosen by the president and given to those people who have made significant
contributions in their field. This years honorees are:
In the arts: Louise Bourgeois, Betty Carter, Agnes Gund, James Levine, Tito
Puente, Daniel Urban Kiley, Jason Robards, Edward Villella, Doc Watson,
Angela Lansbury, and the MacDowell Colony
In the Humanities: Paul Mellon, Studs Terkel, Don Henley, Maxine Hong
Kingston, Luis Leal, Martin E. Marty, Richard J. Franke, William Friday,
David A, Berry, and Nina M. Archabal
*********

Communications-related Headlines for 9/25/97

CPP welcomes new Headliner Betsy Puckett to our growing team!

Internet
TelecomAM: Web Television: Trying To Make Better TV
WSJ: RCA Challenges WebTV in the Race To Link TV and Net
WSJ: Muzak Wafts Tunes Into Cyberspace
WSJ: Should Only the Paranoid Get E-Mail Protection?
WSJ: Internet Ad Proponents Try a New Tack
NTIA: Internet Domain Name Policies

Journalism
WSJ: Feathers Fly

Arts
WP: NEA Backers Gain
NYT: More Than Enduring Faulkner Prevails

Cable
FCC: The State of Competition in the
Cable Television Industry

Telephone Regulation
NECA: FCC Preempts Provision of Wyoming Telecom Act

Campaign Finance Reform
NYT: Mr. Clinton's Blow for Reform
NYT: An Old Fund-Raising Law Is Revisited in New Context

Education
NYT: In Public School, Uniforms as Dress for Success

Info Tech
NYT: Many Reported Unready To Face Year 2000 Bug

*********************************************
* Internet *
*********************************************
Title: Web Television: Trying To Make Better TV
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Info Tech
Description: WebTV, admits chief executive Steve Perlman -- is really not
about the Web; its about better television. "People that are really into it,
they don't think of it as the Web, they think of it as better television. We
would call WebTV interactive television if it didn't have such a bad
reputation -- if, called that, it wasn't doomed to failure." WebTV Plus will
go on sale next month using a pared down version of Microsoft's Windows
called Windows CE. The system will include a 56K modem and a 1G hard drive
capable of storing 12 hrs of compressed video or 50 hours of video. The
system will provide an electronic programming guide that goes beyond just
show times to include descriptions of films (or movies) and a star's
filmography. Sports statistics can also be viewed during a game.

Title: RCA Challenges WebTV in the Race To Link TV and Net
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Walter Mossberg
Issue: Info Tech
Description: RCA wants to challenge market leader WebTV and to get you using
your TV to view the Internet. RCA's Network Computer is the first consumer
product to be based on a design from Oracle's Network Computer division. But
this new device doesn't compete well with WebTV or the promise of WebTV Plus
(expected soon) which will allow TV programs and Web material to be shown on
the same screen -- thus creating an early form of truly interactive
television. WebTV Plus will also include a large hard disk, the ability to
play video clips off the Web, and "an ultrafast 'video modem' that blasts
certain Web content to your TV."

Title: Muzak Wafts Tunes Into Cyberspace
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Bill Richards
Issue: Internet Content
Description: Elevator music is coming to the Internet! No not really. "Next
to spam, we have the most negative brand identity in the world," says the
company's programming director. Musak licenses snippets of songs from music
companies and sends them over the Net to Web sites. The service is already
being used by Tower Records http://www.towerrecords.com/, Blockbuster
http://www.blockbuster.com/, and Microsoft's "Music Central."

Title: Should Only the Paranoid Get E-Mail Protection?
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Thomas Weber
Issue: Encryption
Description: Worried about the wrong people reading your email? Encryption
technology is getting easier to use and, as some security consultants say,
even in low-crime towns, people lock their doors at night. Encryption allows
you to turn today's email postcard into an email letter -- safe, snug and
private in an electronic envelope.

Title: Internet Ad Proponents Try a New Tack
Source: Wall Street Journal
http://wsj.com/ (B8)
Author: Sally Goll Beatty
Issue: Advertising/Internet
Description: In order to sell advertising on the Internet, some firms are
trying to point out the similarities between Web surfing and traditional
couch potatoes-ing. A recent survey shows that Web advertising really is
effective in getting a brand name known and getting people more interested
in buying a product. But, for now, Web advertising is more expensive than
television ads. The price per 1,000 people reached for television ads is
generally $12 and runs up to $20-$30 for the highest rated shows. For Web
advertising, the cost is generally $40-$50 per 1,000 people reached and for
the priciest sites, its $60-$70.

Title: Internet Domain Name Policies
Source: NTIA
http://www.ntia.doc.gov/ntiahome/congress/92597_domnametest.htm
Author: Larry Irving
Assistant Secretary of Commerce for
Communications and Information
Description: Testimony before House Committee on Science, Subcommittee on
Basic Research: "No single force embodies the electronic transformation we
are experiencing today more than the evolving medium known as the Internet.
Once a tool reserved for scientific and academic exchange, the Internet has
emerged as an appliance of every day life, accessible from almost every
point on the planet. Students across the world are discovering vast
treasures of data via the World Wide Web. Doctors are utilizing telemedicine
to administer off-site diagnoses to patients in need. The Internet is being
used to reinvent government and reshape our lives and communities. Finally,
as the Internet empowers citizens and democratizes societies, it is also
changing classic business and economic paradigms...."

*********************************************
* Journalism *
*********************************************
Title: Feathers Fly
Source: Wall Street Journal
http://wsj.com/ (A1)
Author: Kevin Helliker
Issue: Journalism
Description: Twenty-one armed federal agents descended on a Jordan, Montana
ranch to investigate reports that the owner was poisoning eagles that were
preying on his sheep. Why such a show of force by the US Fish and Wildlife
Service? Because it made for good television, the owner contends. Unknown to
the owner, three of the federal agents who served him with a warrant were
wired -- not to other law officials but to a CNN tape recorder. Three of the
people who spent the day investigating the ranch were CNN employees. "This
was a case where government agents became reporters and reporters became
government agents," the owner's lawyer contends. The owner is suing the
federal government and CNN claiming their Fourth Amendment rights were violated.

*********************************************
* Arts *
*********************************************
Title: NEA Backers Gain
Source: Washington Post (C2)
http://www.washingtonpost.com/
Author: Jacqueline Trescott
Issue: Arts
Description: The battle over funding of the National Endowment for the arts
heated up yesterday. Long-time supporter Rep Sidney Yates (D-IL) got a
nonbinding resolution passed in the House that instructs House and Senate
conference committee members to approve the $100 million budget for the NEA
that the Senate passed earlier this year. Rep Pete Hoekstra (R-MI) released
a report critical of NEA management and grant distribution.

Title: More Than Enduring Faulkner Prevails
Source: New York Times (B1)
http://www.nytimes.com/
Author: Mel Gussow
Issue: Arts
Description:Commemorations take place around the United States today to
celebrate the birth of William Faulkner. Faulkner, who was born in New
Albany, Miss. but spent most of his life in Oxford, Miss., has been
acknowledged as one of the most important novelists of the 20th century. He
is probably best known for his masterpieces, "The Sound and the Fury," As I
Lay Dying," Light in August," "Absalom, Absalom!," and his vivid stories
built around the fictional Yoknapatawpha County.

*********************************************
* Cable *
*********************************************
Title: The State of Competition in the Cable Television Industry
Source: FCC
http://www.fcc.gov/Speeches/Hundt/spreh754.html
Author: Reed Hundt, Chairman
Issue: Cable Television/Competition
Description: Testimony before the House of Representatives Judiciary
Committee: "I am pleased to appear before you today to provide the Federal
Communications Commission's perspective on the status of competition in the
cable television industry. The Commission, and the Commission's Cable
Services Bureau, are working hard to promote the development of competition
and consumer choice in the marketplace for multichannel video programming...."

*********************************************
* Telephone Regulation *
*********************************************
Title: FCC Preempts Provision of Wyoming Telecom Act
Source: National Exchange Carrier Association
http://www.neca.org
Issue: Telephone Regulation
Description: (MEMORANDUM OPINION AND ORDER, CCBPol 97-1, FCC 97-336)
"The Commission has preempted a provision of the Wyoming Telecommunications
Act of 1995 (Wyoming Act) that empowers certain incumbent LECs to veto any
attempt by a competitor to provide service in the service areas of the
incumbent. The Commission also preempted an Order of the Wyoming PSC denying
Silver Star's application to provide local exchange service in the Afton,
Wyoming local exchange service area. In deciding to preempt, the Commission
found that the Wyoming Act and the Order of the Wyoming PSC fall within the
prohibition of Section 253(a) of the Communications Act. The Commission
further found that the Wyoming Act and the PSC Order are not *competitively
neutral* within the meaning of Section 253(b) of the Communications Act.

*********************************************
* Campaign Finance Reform *
*********************************************
Title: Mr. Clinton's Blow for Reform
Source: New York Times (A34)
http://www.nytimes.com/
Author: New York Times Editorial Staff
Issue: Campaign Finance Reform
Description: On Tuesday of this week, Bill Clinton threatened to call a
special session if Congress adjourned without addressing the campaign
finance reform issue. Democrats and Republicans have now agreed to permit a
vote on the McCain-Feingold reform legislation as early as October. This
reform would enact a variety of changes reaching from a ban on unlimited
donations to all political parties by individuals, corporations and labor
parties, to an amendment that require labor unions to notify any
non-union members, so they may request refunds, of any dues that have gone
towards political purposes. Currently there are 45 Democrats and 4
Republicans in support of this legislation with the spotlight being placed
on those Republicans that have expressed unease with the current campaign
finance system in the past.

Title: An Old Fund-Raising Law Is Revisited in New Context
Source: New York Times (A1)
http://www.nytimes.com/
Author: Stephen Labaton
Issue: Campaign Finance Reform
Description: On the urging of Senator George H. Pendleton, the 1883 Congress
passed one of the most significant civil service reforms in history. This
law was created to protect low-level civil servants from being forced to
make "voluntary" political "contributions". This reform, which has been
ammended several times over the past century, is once again on the chopping
block. Justice Department officials are now aiming to decide how to
interpret the laws original intent in relation to fund-raising calls placed
from the offices of today's high-ranking officials and the big-time donors
of the nineties.

*********************************************
* Education *
*********************************************
Title: In Public School, Uniforms as Dress for Success
Source: New York Times (A1)
http://www.nytimes.com/
Author: Tamar Lewin
Issue: Education
Description: From small towns to large cities, public school uniforms are
becoming more and more common. Ten or 20 years ago this concept would have
probably raised eyebrows being criticized as keeping students from
expressing their individuality. But today it is being more readily embraced
as it appears to breed unity and self-esteem among the students, makes it
less expensive and easier for parents to outfit their kids for school, and
cuts down on the divisions between the have and have nots. At most schools
the uniforms are voluntary but may become mandatory in the coming years.

*********************************************
* Info Tech *
*********************************************
Title: Many Reported Unready To Face Year 2000 Bug
Source: New York Times (D3)
http://www.nytimes.com/
Author: Laurence Zuckerman
Issue: Info Tech
Description: In a recent study conducted by the Gartner Group, findings show
that 30 percent of companies around the world have not even begun to address
the effect that the year 2000 will have on their computers. The majority of
these were smaller companies with less than 2,000 employees. But research
also showed that larger organizations, such as hospitals, universities, and
Government agencies, were also way behind schedule. Top economists have
warned that if the 2000 problem, or millennium bug as it is often called,
is not effectively dealt with we could be faced with a global recession.
*********
Happy wire-to-wire day to the O's!!!!