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Universal Service
TelecomAM: States Ask FCC To Cooperate More On Universal Service Reform

Long Distance & Competition
TelecomAM: McCain Introduces Bill To Allow Bell Companies Into Long Distance
TelecomAM: Burns Urges FCC to 'Act Expeditiously' to Ease Regulation
TelecomAM: Dewine Says His Subcommittee Will Be Telecom 'Player'
TelecomAM: Powell Highlights Regulatory Philosophy To Investors
TelecomAM: MCI Uses 'Ivan' Campaign To Highlight Lack of Competition

Security
WSJ: Scam Aimed at Corporate Phone Systems Receives a Big Warning on the
Internet

Television
NTIA: The Unconstitutionality of Federally Mandated "Free Air Time"

Campaign Finance Reform
WP: Cincinnati Case to Address Constitutionality of
Campaign Fund Caps
WP: Get Ready for the 'Issue Ads'

Minorities/Jobs
FCC: Creating Conditions for Positive Change

Computer Industry
WP: Study Calls Chip Key Economic Driver
NYT: Internet Is Expanding Arms Race With Junk E-Mail
NYT: Overcoming Skepticism, French Plan All-Out Internet Celebration

Microsoft
WP: Special Advisor Was Leaning Against Microsoft
WSJ: Microsoft Probe Expanded to Cover Sun's Java

Mergers
WP: Alltel Plans $4 Billion Acquisition
NYT: Alltel to Buy Big Carrier of Cellular Calls
WP: Computer Associates' Bid for CSC Expires
WP: Ciena Stock Gains on News of Sprint Contract

** Universal Service **

Title: States Ask FCC To Cooperate More On Universal Service Reform
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The FCC should allow state regulators on the Federal-State
Joint Board to review decisions that change the universal service program,
state members of the panel told the FCC Mar. 11 in a petition. State
regulators called for more input on: 1) whether the FCC should fund only 25%
of the subsidy and leave the remaining "shortfall" to the states; 2) whether
the federal part of the subsidy should be applied only to reducing
interstate access charges; 3) what should be used for collecting and
distributing funds to the states; and 4) what role the FCC should have in making
the subsidy explicit. The state regulators said none of those items were
considered by the Joint Board before the FCC adopted them, yet all four
"will have a significant and direct impact on state policy."

** Long Distance & Competition **

Title: McCain Introduces Bill To Allow Bell Companies Into Long Distance
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Senate Commerce Committee Chairman John McCain (R-AZ)
introduced his
promised bill to free Bell companies from the Telecom Act's restrictions --
including the ban on long distance service -- within one year.
In its findings, the Telecommunications Competition Act of 1998 says that
"existing regulatory devices no longer work" and that antitrust issues
should be handled by the Justice Dept., with the FCC confined to "the
regulatory perspective."

Title: Burns Urges FCC to 'Act Expeditiously' to Ease Regulation
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Regulation
Description: Senate Communications Subcommittee Chairman Conrad Burns (R-MT)
has urged the FCC to "act expeditiously" on Bell company petitions for eased
regulation of advanced network infrastructure. In a letter to FCC Chairman
Kennard, Sen. Burns said he shares US West's concern that "it may never make
economic sense" for the company to provide Internet back bone service under
the restrictions currently placed on Bell companies. He said there is "no
question" that Section 706 of the Telecom Act authorizes the FCC to grant
regulatory relief.

Title: Dewine Says His Subcommittee Will Be Telecom 'Player'
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Antitrust
Description: Senate Antitrust Subcommittee Chairman Mike Dewine (R-OH)
intends his panel to be an important "player" in the telecom industry.
Dewine said his subcommittee won't introduce new legislation, but will use
its oversight powers on "issues that aren't being looked at or aren't being
looked at in as thorough a manner as we might want." As examples of how it
will proceed, Dewine pointed to his draft of a bill to break up Bell
companies, which he said has sparked new dialogue with the companies,
forcing them to talk about the Section 271 process.

Title: Powell Highlights Regulatory Philosophy To Investors
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Regulation/Competition
Description: FCC Commissioner Powell outlined his ideas for telecom
regulation that his aides said highlights some major themes of his term.
Powell said the FCC should renew faith in the free market, shift focus to
encouraging innovation, prepare for the end of the current regulatory
regime, and begin to regulate "efficiently." Powell said that technological
changes require the FCC to change its "balkanized regulatory framework"
because technology has eroded and will soon eliminate the "legal, economic
and conceptual boundaries" of communications media.

Title: MCI Uses 'Ivan' Campaign To Highlight Lack of Competition
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Competition/Advertising
Description: MCI announced a new advertising campaign, using a character
named "Ivan" to show that Bell Atlantic has no more competition than existed
in the Soviet bloc. In TV spots to be aired in Washington, DC, and Albany --
homes of the regulatory bodies that will decide on Bell Atlantic's long
distance application -- Ivan, dressed in parka and fur hat, says there is no
competition "where I live." Ivan then is seen standing in front of the NYC
skyline. MCI officials said the ad would inject "healthy common sense" into
what Bell companies have tried to make "a confusing legal debate."

** Security **

Title: Scam Aimed at Corporate Phone Systems Receives a Big Warning on the
Internet
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Security
Description: The scam goes like this: a caller identifying himself as a
phone-company technician -- usually from AT&T -- says he's checking the line
and needs the customer to dial "9-0" and the pound symbol. On certain phone
systems, that combination gets the caller and outside phone line, which can
then be used to make long-distance calls. An e-mail message warning
consumers of this scenario currently is making the rounds, chain-letter
style, via the Internet. Concerned recipients are forwarding copies of the
message to their friends. Big phone companies and equipment vendors say that
the scam isn't new, and that customers are immune to this particular flavor
of fraud. And most big companies have either programmed their systems to
block access to outside phone lines, or they have trained receptionists to
be wary of so-called technicians testing outside lines.

** Television **

Title: The Unconstitutionality of Federally Mandated "Free Air Time"
Source: NTIA
http://www.ntia.doc.gov/pubintadvcom/marchmtg/DeVore.htm
Author: P. Cameron DeVore, Davis Wright Tremaine LLP
Issue: Free Time For Candidates
Description: A Summary Prepared for The National Association of Broadcasters
for Presentation at a Meeting of the Presidential Advisory Committee on
Public Interest Obligations of Digital Television Broadcasters. [For a full
summary of the meeting see http://www.benton.org/Policy/TV/meeting4.html]

** Campaign Finance Reform **

Title: Cincinnati Case to Address Constitutionality of Campaign Fund Caps
Source: Washington Post (A19)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/055l-031798-idx.html
Author: Ruth Marcus
Issue: Campaign Finance Reform
Description: In an effort to curb the ballooning cost of campaigning in
Cincinnati the city council adopted strict ceilings on what a candidate can
spend on the campaign trail -- limiting campaign expenditures to no more
than three times the annual salary for the council jobs, or about $140,000
total. Today, a federal appeals court will hear a challenge to the city's
ordinance. "What's at stake here is the question of whether the city of
Cincinnati has the right to enact reasonable spending limits to protect the
integrity of its election process," said John Bonifaz of the National Voting
Rights Institute, who will defend the law today. Bonifaz's challenge will be
the Supreme Court ruling on Buckley v. Valeo, 22 years ago. In the ruling,
the Supreme Court "rejected Congress's attempt to impose mandatory spending
limits on congressional candidates. The court in Buckley upheld the
constitutionality of contribution limits on the grounds that they were
needed to prevent the appearance and reality of corruption. But equating
political spending with speech, the court said limits on expenditures
violated the First Amendment and were not justified by the exploding cost of
elections, the corrupting influence of large contributions or the need to
equalize the financial resources of candidates."

Title: Get Ready for the 'Issue Ads'
Source: Washington Post (A21)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/013l-031798-idx.html
Author: Elizabeth Drew
Issue: Campaign Finance Reform
Description: There are two thinly disguised campaigning phenomena that we
can all expect to see across the country this fall as parties work to get
around the contribution limits of the campaign finance law. "Issue ads" and
unlimited individual contributions, or direct contributions by labor and
corporations (including nonprofit ones), are the two destroyers -- connected
by the fact that issue ads are paid for with soft money that isn't supposed
to be used in federal campaigns. The 1996 election produced elaborate
stories that "such ads were produced by groups 'independent' of the
campaign, or political party, they were intended to help." The Federal
Election Commission and several reformers are now working to draw up a
definition of "coordination" to prevent the groups running the issue ads
from colluding with the campaigns they are trying to help. This new
phenomena leads back to the out-dated Supreme Court ruling in Buckley v.
Valeo in 1976. The court said, among other things, that it found "no threat
to the new Federal Election Campaign Act, passed in 1974, from "independent"
groups, which wasn't surprising because at that time there were no such
groups. Since then, the decision has been used by opponents of reform, who
maintain that the court made a flat equation between money and speech. It
did not. The court was actually weighing competing values -- free speech and
clean elections."

** Minorities/Jobs **

Title: Creating Conditions for Positive Change
Source: FCC
http://www.fcc.gov/Speeches/Kennard/spwek809.html
Author: Chairman Kennard
Issue: Minorities/Jobs
Description: Remarks by William E. Kennard to The Rainbow/PUSH Coalition.
"Telecommunications is now 14% of the economy -- and growing. The United
States will need 1.3 million new workers in information technology over the
next eight years. We're going to need 95,000 new computer scientists,
analysts and programmers each year....We've got work to do. Because that's
not happening today. Not when 78% of schools in affluent communities have
Internet access -- but only half the schools in low-income areas. Not when
the percentage of white children with home computers is triple the
percentage of black and Latino kids. Not when only 2.8% of the owners of the
broadcast stations in this country are minority. And the number is declining."

** Computer Industry **

Title: Study Calls Chip Key Economic Driver
Source: Washington Post (C4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/108l-031798-idx.html
Author: Elizabeth Corcoran
Issue: Computer Industry/Jobs
Description: According to a study to be released tomorrow by the
Semiconductor Industry Association, U.S. companies that build computer chips
and related electronic devices created goods worth $41.6 billion in 1996.
The study was issued as part of a lobbying trip to Washington by 15
executives in the chip-making industry. The executives plan to voice their
support for "raising the ceiling on immigration and boosting funding for
research at U.S. universities" as they meet with members of the Clinton
Administration and Congress. Their argument is simple: "What helps the chip
industry will help the U.S. economy."

Title: Internet Is Expanding Arms Race With Junk E-Mail
Source: New York Times (D1,D6)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/17spam.html
Author: John Markoff
Issue: E-Mail
Description: Sendmail, the electronic post office that is used on about 75
percent of the computers that route e-mail messages, is being fitted with a
powerful set of tools to combat spam messages. Eric Allman, Sendmail's
author, is expected to announce today the addition of anti-spam tools to
version 8.9 of the software. This move is part of Allman's plan "to create a
company that will continue to develop new features for the free version of
the program and sell software and support services to business users."

Title: Overcoming Skepticism, French Plan All-Out Internet Celebration
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/eurobytes/17euro.html
Author: Bruno Giussani
Issue: International
Description: Next Friday and Saturday, March 20 and 21, will be "la Fete de
l'Internet" -- a national French celebration of the Internet. As part of the
celebrations, schools will offer parents and alumni Web tutorials, artists
will create interactive works, "net-vans" will roam the streets, politicians
will chat online with their constituencies, and companies will hand out
connection software packages for practically nothing. All of this and more
coming from the European country most "skeptical and doubtful" of this "new
form of American colonialism," as one of its ministers said last year. But
with Internet usage figures up 100 percent from last year, it appears that
France's "diatribes against the global network and the threat it poses to
the French language and culture are quickly dissolving." According to Bruno
Oudet, the president of the French branch of the Internet Society (ISOC) and
one of the people behind the festival, the turning point in people's
attitudes came last year when Lionel Jospin, the socialist Prime Minister,
endorsed the Internet in a speech saying it was crucial to business and a
cultural tool for a "responsible information society." Jospin pledged more
than a billion French francs (about $165 million) to wire schools, train
teachers, support innovative companies, ease the contact between citizens
and the administration, and help make newspapers, books and artworks
accessible on the Internet.

** Microsoft **

Title: Special Advisor Was Leaning Against Microsoft
Source: Washington Post (C4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/117l-031798-idx.html
Author: David Lawsky/Reuters
Issue: Antitrust
Description: According to documents made public yesterday, Lawrence Lessig,
Harvard Law Prof. and appointed "special master" in the government's
antitrust case against the Microsoft Corp., was preparing to recommend a
ruling against Microsoft when he was temporarily removed from his post.
"Microsoft must, for a given product, leave [computer makers] free" to offer
rivals' software even if they use its Windows 95 operating system, said
Lessig in an 11-page letter to Microsoft and the Justice Department. Last
month, a federal appeals court put Lessig's job on hold, at least until late
April.

Title: Microsoft Probe Expanded to Cover Sun's Java
Source: Wall Street Journal (B6)
http://wsj.com/
Author: David Bank & John R. Wilke
Issue: Antitrust
Description: The Justice Dept.'s antitrust investigation of Microsoft has
expanded to include issues related to Sun's Java software. A spokeswoman for
Sun said the company received a civil subpoena from the Justice Dept. and,
separately, from several states investigating the software giant. The move
broadens the government's investigation beyond Microsoft's practices in the
market for Internet-browser software. Sun's Java software is considered a
potential competitor to Microsoft's dominant Windows operating system. Sun's
CEO, Scott McNealy, is a vocal critic of Microsoft. His company has filed a
civil suit against Microsoft alleging that it violated terms of its license
to use Java. The Sun spokeswoman said the subpoenas, "are related to the
Microsoft issue" but wouldn't detail when they were received or what
documents or information they sought.

** Merger **

Title: Alltel Plans $4 Billion Acquisition
Source: Washington Post (C1,C5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/104l-031798-idx.html
Author: Mike Mills
Issue: Merger
Description: The Alltel Corp., and independent telephone company, announced
that it will buy 360 Communications Co., a big cellular telephone carrier,
for $4 billion in stock, plus debt. The acquisition will make Alltel one of
the largest cellular companies in the United States. Alltel is about to
complete a 6,800 mile fiber-optic network that will connect all of its
service areas and estimates it will take an additional 1,800 miles of
fiber-optic to tie all of 360 Communications coverage areas into its
network. Joe T. Ford, Alltel's chairman and chief executive, said: "When the
network is complete, transport costs will be reduced dramatically, and the
traffic volume can increase substantially."

Title: Alltel to Buy Big Carrier of Cellular Calls
Source: New York Times (D3)
http://www.nytimes.com/yr/mo/day/news/financial/alltel.html
Author: Seth Schiesel
Issue: Merger
Description: Alltel's agreement to acquire 360 Communication Co. will make
Alltel a major player in the Southeastern and mid-Atlantic wireless phone
market. The combined company will serve roughly 6.5 million customers in 22
states. Approximately two-thirds of those customers would use the company's
wireless phones. Dennis E. Foster, 360 Communications' chief executive,
would become vice chairman of Alltel. "They have been a more established,
stronger company," said Foster, in regards to Alltel. "And their credit
rating's better. The interesting thing for us is there are no market
conflicts and there is great adjacency of markets."

Title: Computer Associates' Bid for CSC Expires
Source: Washington Post (C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/112l-031798-idx.html
Author: Mark Leibovich
Issue: Merger
Description: Yesterday, Computer Associates International Inc.'s 9.8 billion
"hostile offer" for Computer Sciences Corp. quietly expired.

Title: Ciena Stock Gains on News of Sprint Contract
Source: Washington Post (C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/109l-031798-idx.html
Author: Alex Dominguez
Issue: Merger
Description: The Ciena Corp. announced yesterday that it had signed a
three-year contract to provide the Sprint Corp. with fiber-optic equipment.
The fiber-optic equipment will allow Sprint to more than double the capacity
of its current network.
*********
Sorry we're late -- big day!

Television
KFF: Assessing Local Television News Coverage of Health Issues
NYT: FCC Approves Rating System for TV; Sets With Blockers
Will Be on Market Within a Year
FCC: Commission Finds Industry Video Programming Rating
System Acceptable
FCC: FCC Begins Inquiry Into Broadcast Ownership Rules
WP: P.I.G. Network

Legislation
NYT: Senate Panel Moves Again to Limit Children's Access to Net Porn
TelecomAM: Senate Commerce Committee Passes Three Telecom Bills
TelecomAM: Markey Introduces Schools and Libraries Internet Filtering Bill

Telephony
WP: MCI-Worldcom
TelecomAM: MCI Accuses GTE Of 'Orchestrating' Opposition To WorldCom Deal
TelecomAM: IXCS In Texas Urge $750M Cut In SBC Access Charges
As LD Entry Condition
TelecomAM: Joint Board Wants Crack At Jurisdictional High-Cost Support Issues
WSJ: CellularVision's Hopes for Wireless Service Fall Flat

Internet
WSJ: Netscape to Expand Internet Service, Boosting Its Rivalry With
Other Firms
WSJ: Sendmail Software's Author Is Starting Firm to Develop and
Distribute Program

Lifestyles of the Rich and Famous
NYT: Aiming for Business This Time, Gates Plans 2d Book

** Television **

Title: Assessing Local Television News Coverage of Health Issues
Source: Kaiser Family Foundation
http://www.kff.org/archive/media/general/crime/crime.html
Issue: Television
Description: [Following up on yesterday's Washington Post article] "A new
analysis of local television news programs documents that crime is indeed
the single biggest topic of local news coverage, and most crime stories
focus on murders, shootings, and other violent crime."

Title: FCC Approves Rating System for TV; Sets With Blockers
Will Be on Market Within a Year
Source: New York Times (A16)
http://www.nytimes.com/yr/mo/day/news/washpol/tv-ratings.html
Author: Lawrie Mifflin
Issue: V-Chip
Description: Yesterday, the Federal Communications Commission approved the
TV-ratings system developed last year by broadcasters, parent advocacy
groups and the Motion Picture Association of America. Television
manufacturers must now begin making TV sets that can block programs
according to the new rating system by installing blocking circuitry, called
a v-chip. The v-chip will enable parents to block objectionable programs
from being viewed on their television set. All TV sets with a screen 13" or
larger will be required to have v-chip capability by January 1, 2000.

Title: Commission Finds Industry Video Programming Rating System Acceptable
Source: FCC
http://www.fcc.gov/Bureaus/Cable/News_Releases/1998/nrcb8003.html
Issue: V-Chip
Description: "The Commission adopted an order finding acceptable the video
programming rating system currently in voluntary use and established
technical requirements for consumer electronic equipment to enable blocking
of video programming. These two actions will help provide parents with the
information and ability to make informed viewing decisions for their families."

Title: FCC Begins Inquiry Into Broadcast Ownership Rules
Source: FCC
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1998/nrmm8007.html
Issue: Ownership
Description: "The FCC began a formal inquiry to review all of its broadcast
ownership rules as required by the Telecommunications Act of 1996. Section
202(h) of the 1996 Telecom Act requires the FCC to review the broadcast
ownership rules every two years to "determine whether any of such rules are
necessary in the public interest as the result of competition," and to
repeal or modify any rules that are determined to no longer be in the public
interest. The Notice of Inquiry adopted by the Commission today is its first
step in carrying out this statutory mandate for the 1998 biennial review of
its broadcast ownership rules. The Commission said that if in this review it
determined that any of its broadcast ownership rules were no longer in the
public interest, it would subsequently commence an appropriate Notice(s) of
Proposed Rule Making to modify or repeal the rule(s)."

Title: P.I.G. Network
Source: Washington Post (A24)
http://www.washingtonpost.com/
Author: HERBlock
Issue: Free Time for Candidates
Description: Editorial Cartoon. Picture this: a hefty looking pig/TV
reporter smoking a
cigar in a suit and tie with lights and camera shining down upon him. He has
a stack of papers to his left and in his hand is holding a piece of paper
that says: "Proposal for some free time for candidates before elections."
Then in the (bubble) space above his head it reads: "This is broadcasting
network P.I.G. enjoying free
public-air -- here is a silly suggestion that we give back a few bucks worth
of time -- right back after a few more commercials..." [For a full viewing
of this image, see the upper right corner of sec.A, pg24 in today's WPost.]

** Legislation **

Title: Senate Panel Moves Again to Limit Children's Access to Net Porn
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/13senate.html
Author: Jeri Clausing
Issue: Internet Regulation
Description: The Senate Commerce Committee approved two bills yesterday
intended to limit children's access to "smut" on the Internet. One bill
targets the distribution of pornography to anyone under the age of 18 on the
Web, the other would require schools that receive
federal subsidies for Internet connections to install filtering software on
their computers. "This is just Congress again making the same mistake they
made with the Communications Decency Act, expecting that they can control
content on the Internet and, I think, leading constituents down an absolute
blind alley," said Daniel J. Weitzner, deputy director of the Center for
Democracy and Technology. Ann Beeson, an American Civil Liberties Union
national staff lawyer, said, "We tend to assume that just because the courts
have become educated about these issues, which clearly they have...we tend
to assume legislators have become educated too, which clearly they haven't,
especially at the state level." Senator Dan Coates (R-IN), who sponsored the
bill targeting
commercial distribution called Thursday's vote "a great victory, and the
first big step on the way to the Senate floor."

Title: Senate Commerce Committee Passes Three Telecom Bills
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Legislation
Description: The Senate Commerce Committee passed bills to 1) reduce slamming,
2) require schools and libraries receiving subsidies for Internet hookups to
install filtering software, and 3) ban commercial distribution on the Web
of material harmful to minors. It didn't vote on funding research on the
Next Generation Internet. The anti-slamming bill, sponsored by Committee
Chairman John McCain (R-AZ) and five others, seemed to have little
opposition and
John McCain said it has overwhelming popular support. The Committee approved
an amendment by Sen. Conrad Burns requiring the FCC to report to Congress on
the worst slammers. Sen. McCain's Internet School Filtering Act received
bipartisan praise for leaving to local authorities decisions as to what sort
of software they need and what content to filter.

Title: Markey Introduces Schools and Libraries Internet Filtering Bill
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Legislation
Description: Rep. Ed Markey (D-MA) introduced his version of a measure linking
subsidies for hooking schools and libraries to the Internet to protecting
children from indecency. The House Telecom Subcommittee's ranking Democrat
proposed a bill requiring schools and libraries to "establish a policy with
respect to access to material that is inappropriate for children." Similar
to the suggestion advanced by Sen. Conrad Burns (R-MT), Markey's bill would
allow
more local flexibility than the one introduced by Sen. Commerce Committee
Chairman John McCain (R-AZ) and passed by the Senate Committee. Sen.
McCain's bill
requires schools and libraries to install and use filtering software.

** Telephony **

Title: MCI-Worldcom
Source: Washington Post (F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/13/052l-031398-idx.html
Author: Mike Mills
Issue: Merger
Description: On Thursday, Virginia Attorney General Mark Early asked federal
regulators to carefully review whether the MCI-Worldcom merger would hinder
competition on the Internet. "We think these companies are good companies,
and their presence in Virginia is very positive," Attorney General Early
said. But he added: "Virginia has a very unique interest in making sure the
Internet...remains competitive." (The state hosts many Internet-related jobs
and much of the early work on the Internet was done in Northern VA.)
Critics of the merger say that the combination of the two companies would
carry as much as "60
percent of the transmissions on the Internet's trunk lines, raising a
possibility of restraint of trade." Both MCI and Worldcom claim that the
actual figure would be much lower.

Title: MCI Accuses GTE Of 'Orchestrating' Opposition To WorldCom Deal
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers, Sneakiness & Jealousy
Description: GTE is "orchestrating" much of the opposition to the
MCI-WorldCom merger, MCI said. An MCI spokesman said GTE, which was outbid
by WorldCom for MCI, is acting like a "disappointed suitor." GTE said MCI is
looking for a "scapegoat" as the merger faces "serious trouble" with
antitrust regulators.

Title: IXCS In Texas Urge $750M Cut In SBC Access Charges As LD Entry Condition
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Interexchange carriers in Texas jointly advised the Texas PUC
that the intrastate access charges of Southwestern Bell Telephone need to be
cut by as much as $750 million before the telco can be allowed into the
interLATA long distance market. The IXCs, including national carriers AT&T
and MCI, said Southwestern's access charges need to come down to what they
contend is a cost-based level. Otherwise, they argue that the telco will be
able to sustain anticompetitive and discriminatory long distance pricing
structures. AT&T and MCI said the 12 cent a minute access charge level in
Texas is 24 times the half cent per minute cost they claim access service
actually costs Southwestern Bell to provide.

Title: Joint Board Wants Crack At Jurisdictional High-Cost Support Issues
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The state members of the Federal-State Joint Board on Universal
Service have asked the FCC to refer five major issues relating to
jurisdictional high-cost universal service support for the board's
consideration. These issues include 1) what role the FCC should play in
making intrastate high-cost support systems explicit, 2) how to split
responsibility for recovery of joint and common costs, 3) whether FCC
high-cost support should stay limited to 25% of the need, 4) whether federal
universal service funds should be applied to reduce carrier access charges,
and 5) what is the most appropriate method for apportioning and distributing
high cost funds among the states.

Title: CellularVision's Hopes for Wireless Service Fall Flat
Source: Wall Street Journal (B4)
http://wsj.com/
Author: Barbara Martinez
Issue: Wireless/Corporate
Description: For years, CellularVision USA CEO Shant Hovnanian assured
investors that a federal auction of licenses to offer a wireless service
called LMDS would make CellularVision's own LMDS license covering NYC
skyrocket in value. Now that the auction is here, bidding has been lukewarm.
That has cast doubt on the value of CellularVision's principal asset. And it
raises questions about the company's long-term prospects, given its poor
track record in landing customers and improving its financial performance.
Suddenly CellularVision's once-coveted license doesn't seem to be worth as
much as it once was. It is cutting jobs, struggling to raise capital, it's
stock price is dropping, and a high-ranking exec quit recently.

** Internet **

Title: Netscape to Expand Internet Service, Boosting Its Rivalry With Other
Firms
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Kara Swisher & Nick Wingfield
Issue: Online Services/Competition
Description: Netscape is planning to expand its online service into a major
Internet gateway, a move that could require it to both compete and cooperate
with other Internet companies. The move to shift it's recently launched
Netcenter site to a broader "portal" site -- a combination of content,
communications and community features plus Internet navigation tools -- will
bring Netscape into more direct competition with many major Internet
players, including Yahoo!, Excite, AOL, and a similar site that will soon be
launched by Microsoft called Start. But how Netscape configures such a site
might also include a single partnership or series of partnerships with some
of those same competitors.

Title: Sendmail Software's Author Is Starting Firm to Develop and
Distribute Program
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Don Clark
Issue: E-mail
Description: A technical pillar of the Internet is going commercial in a
move that could shape the evolution of e-mail. The author of an 18-year old
program called Sendmail, which routes computer messages around the global
collection of computer networks, is forming a company that will take over
development and distribution of the software. Sendmail plans to keep
distributing and updating a free version of the program, while selling
commercial variants along with technical support for companies and Internet
services. Sendmail exemplifies the 'Net's altruistic, anarchistic
traditions, and how entrepreneurs are finding new ways to exploit them. The
software was created by programmer Eric Allman along with versions of the
Unix operating system that researchers at the Univ. of California at
Berkeley helped popularize in the late 1970s.

** Lifestyles **

Title: Aiming for Business This Time, Gates Plans 2d Book
Source: New York Times (C4)
http://www.nytimes.com/library/tech/98/03/biztech/articles/13microsoft.html
Author: John Markoff
Issue: Microsoft/Lifestyle
Description: In an effort to highlight his talents as technologist and
improve his government tarnished image, Bill Gates, chairman of the
Microsoft Corp., plans to write a new book. The new book to be aimed at
Microsoft's millions of customers will reportedly portray Gates as "an
innovator who built a company that changed the way the world does business."
Paul Saffo, a technology consultant at the Institute for the Future, in
Menlo Park, CA, said about the book: "There is something touchingly quaint
about the fact that the guy who made his fortune in digital technology feels
that the only way he can explain himself is in print." [As if don't have
ENOUGH to read about Microsoft already...]
*********

Legislation
TelecomAM: Senate Commerce to mark Up Internet Legislation Thursday

Television
NYT: The Cleansing Power of Free TV
NYT: Belgrade TV Makes Serbs Furious at Albanians
NYT: Advertising: PBS' 'Arthur' Again Cavorts With Commerce

Education
WP: For Computer Have-Nots, A Web of School Problems

Telephony
NYT: It's a Control Thing: Vermont Vs. Cell Phone Towers
WSJ: ICG Joins Telephone Price Wars, Plans 5.9 Cents a Minute for Long
Distance

Microsoft
NYT: Justice Department Names 'Point Man' on Microsoft Case
WSJ: Microsoft, in a Swipe at Sun, Introduces New Tools to Use Java Only
on Windows

Corporate
WP: Smaller Rivals Question MCI-WorldCom Merger Plan
NYT: 2 Corporate Cultures Meet in MCI-Worldcom Merger
NYT: Magazine to Police Media Hires a Watchdog for Itself
WP: 9 News Partners Disband
WSJ: Cisco Sets Pact for Puchase of NetSpeed

Journalism/Internet
WSJ: Drudge Match: A Web of Intrigue: The Internet's Bad Boy Has His Day
in Court

** Legislation **

Title: Senate Commerce to mark Up Internet Legislation Thursday
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Legislation
Description: Two pieces on Internet legislation are on the agenda of
Thursday's markup session of the Senate Commerce Committee. S-1482,
introduced by Sen. Dan Coats (R-IN) would ban material "harmful to minors"
from being posted on the Internet [sure, there goes Headlines]. S-1619,
introduced by Senate Commerce Committee Chairman John McCain (R-AZ) and
Ranking Member Ernest Hollings (D-SC), would require schools and libraries
receiving universal service support funds to use Internet filtering
software. The Committee will also act on S-1618, also introduced by Sen.
McCain, that cracks down on slamming. The markup session is scheduled for
9:30am in Russell Building Room 253.

** Television **

Title: The Cleansing Power of Free TV
Source: New York Times (A30)
http://www.nytimes.com/yr/mo/day/editorial/11wed1.html
Author: NYT Editorial Staff
Issue: Campaign Finance Reform/Free Time for Candidates
Description: It is expected that the Senate Appropriations Committee will
approve legislation that would prevent the Federal Communications Committee
from spending any money to develop or enforce new rules that would require
television stations to provide free air time for political candidates. The
measure would be added as a rider to a supplemental appropriations bill
"that includes funding for peacekeeping in Bosnia." "Like the broadcasters,
Congressional opponents pretend that this is purely a jurisdictional issue,
and that a free-time rule would exceed the FCC's powers. Yet, as the
Congressional Research Service concluded last year, the agency has broad
authority to insure that broadcast licensees use the public airwaves to
serve the public interest. If the 1996 fund-raising scandals taught us
anything, it is that a system under which candidates mortgage themselves to
wealthy interests in order to buy TV time does not serve the best interests
of the Republic. A free-time rule would not by itself break the insidious
link between politics and big money, but it could weaken that link while
giving underfunded challengers a chance to be heard."

Title: Belgrade TV Makes Serbs Furious at Albanians
Source: New York Times (A10)
http://www.nytimes.com/yr/mo/day/news/world/yugo-belgrade.html
Author: Jane Perlez
Issue: International
Description: Serbian President Solbodan Milosevic is using specific
televised images to drum up Serbian nationalist sentiment. The most recent
image being used in this mounting television campaign is the four widows of
Serbian policemen "weeping unconsolably at the funerals of their husbands
killed in an ambush set by ethnic Albanian guerrillas." To date, the
state-run television has failed to broadcast any images of the more than 70
Albanians killed in Kosovo over the past 10 days.

Title: Advertising: PBS' 'Arthur' Again Cavorts With Commerce
Source: New York Times (D6)
http://www.nytimes.com/yr/mo/day/news/financial/aardvark-ad-column.html
Author: Stuart Elliott
Issue: Television
Description: A recent promotion sponsored by Juicy Juice and TV Guide
concerns critics, "who are worried about the blurring of lines between
commercial and non-commercial enterprises -- particularly those aimed at
children." Their primary concern stems from the contest that the promotion
is centered around. The contest is open to children, ages 5-8, to suggest
ideas for an episode of "Arthur," a popular cartoon character whose series
of children's books has expanded into a hit PBS program. This aspect of the
promotion brings to light a primary topic among critics: "the continuing
expansion of profit-making ventures into formerly non-profit realms." PBS
executives assert that public broadcasting "has been embracing elements of
commercialization because it must match the increasingly sophisticated
thrusts of its commercial competitors."

** Education **

Title: For Computer Have-Nots, A Web of School Problems
Source: Washington Post (A1,A11)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/11/089l-031198-idx.html
Author: David Nakamura
Issue: Education
Description: Educators say that students who do not have access to a
computer in their home are at a huge disadvantage. Even though the falling
cost of computers have made the machines more affordable for some families,
many are still unable to afford such a purchase for their children. A
Washington, DC area survey conducted by Scarborough Report Corp., a market
research company, last August found that "71 percent of area households with
children ages 12 to 17 had a computer, and only 45 percent had a computer
with a modem." And according to a report by Computer Intelligence, another
market research firm, "nationwide, 60 percent of households with children
have a computer." Teachers and school administrators say that the
differences they are seeing between students who have a computer and those
who don't is not only in the have-nots being forced to turn in work that is
less polished. These students are also falling behind in the development of
computer skills that they will need in college and the job market, and they
are less likely to be exposed to as many facts and ideas as their classmates
who are more skilled in navigating the Internet. Some schools have tried to
solve the problem by keeping computer labs open both before and after
school. But many schools say that they can't afford to pay their staff
overtime and have difficulty in finding teachers that are willing to
volunteer their time to keep the labs open.

** Telephony **

Title: It's a Control Thing: Vermont Vs. Cell Phone Towers
Source: New York Times (A12)
http://www.nytimes.com/yr/mo/day/news/national/vt-cellphones.html
Author: Carey Goldberg
Issue: Wireless Communication
Description: Vermont is quickly becoming a national focal point as it
mounts a campaign against towers being put up for cellular phone traffic.
The tower issue has become so heated in Vermont that the state's senator,
Patrick Leahy, and two congressional colleagues, Sen. James Jeffords and
Rep. Bernard Sanders, held a special town meeting to discuss plans to put a
150 foot tower on top of Buffalo Mountain. The special guest at the meeting
was William Kennard, chairman of the FCC, who traveled to the site to
specifically hear Vermonters' concerns. "I don't want Vermont turned into a
giant pincushion with 200-foot towers sticking out of every mountain and
valley," declared Leahy. "We're not asking that Vermont be left out of the
telecommunications age. But we Vermonters want to be able to determine where
the towers are located."

Title: ICG Joins Telephone Price Wars, Plans 5.9 Cents a Minute for Long
Distance
Source: Wall Street Journal (http://www.wsj.com/) (B8)
Author: Stephanie N. Mehta
Issue: Long-Distance
Description: The rate undermines the dime-a-minute pricing widely
available, and Qwest Communications' 7.5 cent-a-minute price for Internet
phone calls. New carriers are able to offer lower prices in part because
their calls bypass the tolls that traditional long-distance carriers must
pay to local phone companies. IGC is able to offer LD service nationwide
because of its recent acquisition of Internet service provider Netcom.

** Microsoft **

Title: Justice Department Names 'Point Man' on Microsoft Case
Source: New York Times (D2)
http://www.nytimes.com/yr/mo/day/news/financial/microsoft-suit.html
Author: Steve Lohr
Issue: Antitrust
Description: In a sign that the Justice Department's confrontation with the
Microsoft Corp. may be escalating, the department hired Jeffrey Blattner, a
former chief counsel of the Senate's Judiciary Committee, as special counsel
for information technology. A Justice Department official said yesterday
that Blattner, whose appointment is expected to be announced today, will
serve as the "point man inside Justice on the Microsoft case."

Title: Microsoft, in a Swipe at Sun, Introduces New Tools to Use Java Only
on Windows
Source: Wall Street Journal (http://www.wsj.com/) (B8)
Author: Nick Wingfield
Issue: Computer Technology
Description: Microsoft is introducing new tools to encourage programmers to use
Sun's Java language to write software that runs only on Microsoft Windows
systems.
Microsoft's new Windows Foundation Classes make it easier to create Java
programs
that look just like other Windows programs, undercutting the primary
selling point of Java that it can write applications running unmodified on
virtually any computer, regardless of the underlying software or hardware.
This new technology of Microsoft's only escalates the dispute between the two
companies that is already in court.

** Corporate **

Title: Smaller Rivals Question MCI-WorldCom Merger Plan
Source: Washington Post (C11)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/11/052l-031198-idx.html
Author: Mike Mills and Rajiv Chandrasekaran
Issue: Merger
Description: As shareholders of MCI and Worldcom prepare to vote today on
the companies proposed merger, federal regulators continue to investigate
into whether the newly-formed company "would control too much of the
Internet. Critics contend it would carry more than 60 percent of data
traffic on major Internet routes, an amount the companies deny." Whatever
the regulators conclude, most analysts agree that the merger will not be
delayed on antitrust grounds. Regulators may however impose tough guidelines
that would require the companies to give competitors access to the network
or even sell off some Internet operations.

Title: 2 Corporate Cultures Meet in MCI-Worldcom Merger
Source: New York Times (D1,D20)
http://www.nytimes.com/library/tech/98/03/biztech/articles/11phone.html
Author: Seth Schiesel
Issue: Merger
Description: One of the possible hurdles in the pending MCI-Worldcom merger
is the stark differences between the two company's boards. "The MCI board is
much older, more corporate almost; it has two women and an
African-American," said one person who was present at a dinner held last
night at MCI's headquarters. "It's like you'd think a [traditional] board
would look like." "The Worldcom board is all entrepreneurial-type guys that
came with the acquisitions," the person said. "The difference is almost
funny." Analysts said Tuesday that they don't think hurdles like these will
block the merger. But they could provide a few bumps in a deal that would
create one of the world's most powerful communications companies.

Title: Magazine to Police Media Hires a Watchdog for Itself
Source: New York Times (B8)
http://www.nytimes.com/yr/mo/day/news/arts/media-watchdog.html
Author: Robin Pogrebin
Issue: Infrastructure
Description: Steven Brill's new magazine, Content, will work as an
aggressive mass market watchdog for the media industry. The magazine, whose
first issue is due out in June, will cover everything from Web sites to
major newspapers to 24-hour cable. Yet as Brill described Content to people,
he kept encountering the question, "But who will be watching you?" So he
took the question to heart and hired Bill Kovach, the curator of the Nieman
Foundation for journalism at Harvard University. Brill and Kovach have a
two-year contract under which Kovach will "monitor the magazine as an
outside ombudsman." Brill said of Kovach's role that "it's basic quality
control."

Title: 9 News Partners Disband
Source: Washington Post (C12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/11/058l-031198-idx.html
Author: Eric Quinones
Issue: Corporate Retrenchment
Description: New Century Network, a three-year partnership of nine leading
newspaper companies that formed to boost newspapers' presence on the
Internet, has shut down because members could not decide on a common
business strategy. "Not enough members felt strongly enough to keep it
going," said NCN board member Harry Chandler, director of new business
development at the Los Angeles Times. The board decided on Monday to shut
down NCN immediately, a move that has left 40 employees out of work.
Chandler said that NCN's members may still band together to seek
advertisers, but there are currently no plans to continue their mission.

Title: Cisco Sets Pact for Puchase of NetSpeed
Source: Wall Street Journal (http://www.wsj.com/) (B8)
Author: Lee Gomes
Issue: Merger
Description: Cisco Systems, Inc. has signed an agreement to buy NetSpeed
Inc, a maker of high-speed Internet technology called digital subscriber
line (DSL) which uses existing telephone lines to provide high-speed links
to the Internet. Initially Cisco plans on selling the DSl equipment to
local phone companies, then eventually to consumers. DSL modems currently
cost around $200.

** Journalism/Internet **

Title: Drudge Match: A Web of Intrigue: The Internet's Bad Boy Has His Day
in Court
Source: Wall Street Journal (http://www.wsj.com/) (A1)
Author: Edward Felsenthal
Issue: Journalism/Internet
Description: In yet another case of the media talking about itself, the WSJ
spends many inches on scandal and personal enmity before getting to
anything approaching the critical issues behind this story: How does one
decide what amounts to "reckless" speech on a free-wheeling, unbridled
medium like the Web? How much reporting and fact-checking should diligent
Internet publishers do? Is a retraction meaningful in cyberspace? WSJ
spends some time on the fact that few "real" reporters like or respect
Drudge's journalistic practices and now find themselves either lending
support to a style of journalism they detest or risk putting their own
freedoms at risk in the future. (hmmmmmmmmmmmm...)
*********

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

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

Education
WP: A Corporate Seat in Public Classrooms

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

** Television **

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

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

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

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

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

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

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

** Telephony **

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

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

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

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

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

** Education **

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

** Encryption **

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