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

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

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

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

** Internet **

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

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

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

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

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

** Telephony **

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

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

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

** Television **

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

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

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

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

** Microsoft/Antitrust **

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

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

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

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

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

Jobs:
WP: A Program For Producing Techies

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

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

** Internet **

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

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

** Telephony **

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

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

** Television **

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

** Jobs **

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

** Research & Technology **

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

** Corporate News **

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

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

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

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

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

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

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

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

Internet
WP: Web Venture Links Lobbies, Legislation

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

** EdTech **

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

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

** Telephony **

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

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

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

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

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

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

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

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

** Infrastructure **

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

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

** Television **

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

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

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

** Internet **

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

** Privacy **

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

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

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

Telephony
WSJ: MCI Cancels Plan to Resell Local Service
TelecomAM: MCI Throws the Towel in on Local Service Resale
TelecomAM: Bell Atlantic Says It's Not Surprised By MCI Announcement
WSJ: Bells Win Ruling By Court Curbing FCC's Regulation
TelecomAM: LCI Proposes Splitting Bells Into Wholesale, Retail Companies
FCC: Section 271 Review: The Challenge of Charlie Brown
FCC: Presentation on Status of Local Telephone Competition

Infrastructure
WSJ: Bells' Latest Effort to Offer Fast Access To the Internet
Shows More Promise
NTIA: Telecommunications and Information Infrastructure
Assistance Program
NYT: Private Group Warns of U.S. Internet Registry Plans

Microsoft
WSJ: Microsoft and Justice End a Skirmish, Yet War Could Escalate
WP: Microsoft to Allow Browser Blocking
NYT: Microsoft Bows to U.S. Order on Browser
WSJ: Netscape to Share Browser Program Code
NYT: Analysis: A Concession and a Push in Browser War
WP: Netscape Offers Web Browser for Free

Lifestyles
NYT: Seats With Computers Add New Dimension to Games

** Telephony **

Title: MCI Cancels Plan to Resell Local Service
Source: Wall Street Journal (A10a)
http://wsj.com/
Author: Shawn Young
Issue: Competition
Description: MCI announced it would abandon its effort to resell the Baby
Bells' local phone service under its own name. MCI said that the high
prices the regional Bells charge resellers in an effort to ward off
competition makes resale an impossible strategy. "The more you sell, the
more you lose," said Timothy Price, MCI's president. [See also TelecomAM
"MCI Throws the Towel in on Local Service Resale"
http://www.telecommunications.com/am/]

Title: Bell Atlantic Says It's Not Surprised By MCI Announcement
Source: Telecom AM---jan. 23, 1998
http://www.telecommunications.com/am/
Issue: Competition
Description: MCI's decision to stop offering local service by resale "comes
as no surprise," Bell Atlantic officials said. Senior VP of Gov't. Relations
Thomas Tauke quoted bank robber Willie Sutton, saying MCI has decided to
focus on building facilities for business service "because that's where the
money is." Until states end the "social contract" of subsidizing low
residential rates with high business rates, Tauke said, residential
competition never will develop.

Title: Bells Win Ruling By Court Curbing FCC's Regulation
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Competition
Description: The Baby Bells won another federal court victory that could
further delay competition in local telephone markets. The U.S. Court of
Appeals in St. Louis ordered the FCC to uphold an earlier court ruling that
stripped the federal agency of some of its power to set prices and rules on
how rivals of the Bells can enter local phone markets. The three-judge
panel's strongly worded order came a day before the U.S. Supreme Court's
decision today on whether it will hear an appeal of rulings made last year
by the Eighth Circuit. In those rulings, the Eighth Circuit has maintained
that states, not the FCC, have authority over the prices Baby Bells can
charge rivals for hooking up to their networks.

Title: LCI Proposes Splitting Bells Into Wholesale, Retail Companies
Source: Telecom AM---jan. 23, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: LCI International proposed that Bell companies be allowed 'fast
track' entry into long distance if they separate their network operations
from their service operations. In a petition filed with the FCC, LCI said
incumbents have conflicting interests because they own the networks all
carriers must use and also serve as competitors on those networks. Bell
companies that agree to separate those interests into two companies no
longer would have an unfair competitive advantage requiring a long distance
ban, LCI said. It promised to offer bundled and long distance service
immediately in competition with any Bell company implementing its plan.

Title: Section 271 Review: The Challenge of Charlie Brown
Source: FCC
http://www.fcc.gov/Speeches/Powell/spmkp801.html
Author: Commissioner Michael Powell
Issue: Competition
Description: Remarks by Commissioner Michael K. Powell Before the United
States Telephone Association, Washington, D.C. "While my remarks focus on
the challenges posed for regulation of the Bell Operating Companies, I
recognize that what the FCC and other regulators learn in the context of
section 271 may ultimately affect how we view incumbents telephone companies
more generally. More importantly, I firmly believe that some of the most
innovative moves to spur competition and provide value to consumers are
being made, not by the BOCs, but by some of the smaller incumbents
represented here today. I encourage all of you to keep my office and the
rest of the Commission informed of your activities and how these activities
can provide useful models or insights for the section 271 process -- we are
all in this together."

Title: Presentation on Status of Local Telephone Competition
Source: FCC
http://www.fcc.gov/Bureaus/Miscellaneous/Public_Notices/1998/pnmc8004.html
Issue: Competition
Description: The Federal Communications Commission will conduct an en banc
presentation on the status of local telephone competition as part of the
Commission's open agenda meeting on Thursday, January 29, 1998. This special
presentation by trade association and local exchange carrier officials will
commence at approximately 10:45 a.m. in the FCC meeting room, Room 856.
Copies of presentation material will be available on the Commission's Web
site at http://www.fcc.gov/enbanc/.

** Infrastructure **

Title: Bells' Latest Effort to Offer Fast Access To the Internet Shows More
Promise
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Infrastructure
Description: The Baby Bells are promising easy, super-fast access to the
Internet again. But this time the Bells and GTE are teaming up with heavy
hitters in the computer industry to tout ADSL, or asymmetrical digital
subscriber line, which promises to let consumers zip along the information
superhighway and download data at speeds of 1.5 million bits per second.
Trouble is, the Bells don't have a stellar track record selling such
services. Consumers have complained of long waits for delivery, high prices
and service problems. The Bells may get it right this time, though. The
stakes are higher, thanks to the cable companies' rapid entry into the
high-speed access business. And the version of ADSL favored by the computer
industry is relatively easy for the Bells to deploy: it works over ordinary
copper wires, and technicians don't have to install special lines at the
customer's home.

Title: Telecommunications and Information Infrastructure Assistance Program
Source: NTIA
http://www.ntia.doc.gov/ntiahome/press/98tiiap1.htm
Issue: Infrastructure
Description: NTIA has announced the 1998 round of the Telecommunications and
Information Infrastructure Assistance Program (TIIAP)
http://www.ntia.doc.gov/otiahome/tiiap/index.html. For fiscal year 1998,
approximately $17 million in grant funds will be awarded. The deadline for
submitting applications is March 12, 1998. On January 15, NTIA will hold a
short public briefing to introduce the 1998 TIIAP competition. NTIA will
also hold a series of regional "Outreach Workshops and Partnering Events"
http://www.ntia.doc.gov/otiahome/tiiap/Application/outreach2.html.

Title: Private Group Warns of U.S. Internet Registry Plans
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/012398domain.html
Author: Jeri Clausing
Issue: Internet Domain
Description: Members of a private group trying to add new domains to the
Internet said at a news conference yesterday that the government's decision
to delay the group's plan is creating chaos on the Internet and threatens to
derail competition. The group, which has insisted in the past that it will
add the new domains
with or without the government's approval, conceded that they will have to
put their plan on hold if Ira C. Magaziner, Clinton's Internet Czar,
finalizes the recommendation he has been discussing this week. The plan
Magaziner has verbally floated would allow only "one of the seven new
top-level domains to be added immediately and would extend Network Solutions
exclusive rights over the coveted ".com," ".net," and ".org" domains until a
private body can be put in place to control all the Internet domains and
addresses." Magaziner's plan is expected to be released any day. "Whatever
he does, if he interjects himself by making micromanagement decisions, he
has now preserved the monopoly because the process the U.S. government will
have to go through is so long it will last two and half years," said Don
Heath, president of Internet Society. Any delay will leave 88 companies,
that paid $10,000 each to become registrars of the seven new domains, in
limbo. "What we will see is NSI using its monopoly to crush companies like
my own," said Ivan Pope of the British company NetNames, a member of the
Council of Registrars. "They will delay this as long as possible."

** Microsoft **

Title: Microsoft and Justice End a Skirmish, Yet War Could Escalate
Source: Wall Street Journal (A1)
http://wsj.com/
Author: David Bank & John R. Wilke
Issue: Antitrust
Description: Microsoft settled a legal skirmish with the U.S. Dept. of
Justice, but its hardball tactics have set the stage for what may be a wider
and costly war. The company accepted terms to avoid a contempt-of-court
citation sought by the Justice Dept. for allegedly violating a court order.
Microsoft will do what the agency has sought: to give the nation's
personnel-computer makers the right to ship the current version of its
best-selling Windows 95 operating system on their machines without also
being forced to display Microsoft's software for browsing the Internet. But,
because of Microsoft's arrogant posture in its effort to defer compliance,
the Justice Dept. is now building a new antitrust case that could affect the
software giant's planned introduction of Windows 98 later this year. Lawyers
familiar with the case say the case would attack the heart of Microsoft's
strategy of using Windows to muscle into new markets.

Title: Microsoft to Allow Browser Blocking
Source: Washington Post (G1,G4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/23/162l-012398-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: The Microsoft Corp. agreed yesterday to allow personal computer
makers to block access to the company's Internet browser when installing
Microsoft's latest version of its Windows 95 operating system. The company's
decision to offer this significant concession to the Justice Department will
prevent the software giant from being held in contempt of court. "This is a
very important victory for consumers and innovators," said Assistant
Attorney General Joel I. Klein. He said that the settlement shows technology
companies "that their products can compete on their own merits and not be
snuffed out by Microsoft's use of monopoly power." Legal experts say that
this agreement will most likely remain in effect until Windows 95 is
replaced by a new product. The settlement was reached after intense
discussions Wednesday night.

Title: Microsoft Bows to U.S. Order on Browser
Source: New York Times (A1,C5)
http://www.nytimes.com/library/cyber/week/012398microsoft.html
Author: Joel Brinkley
Issue: Antitrust
Description: In order to avoid being held in contempt of court, the
Microsoft Corp. has agreed to do just what it said it could not - to sell
its latest version of its Windows 95 operating system to computer
manufacturers with their Internet browser hidden or partially removed.
However, the agreement only settles part of the government's antitrust case
against the software company. The larger issues are now before an appeals
court, where the hearing is scheduled for April 21.

Title: Netscape to Share Browser Program Code
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Don Clark
Issue: Online Services
Description: Netscape, hoping to one-up Microsoft, said it will give away
its flagship World Wide Web software along with a programming code that will
let other companies enhance it. By posting this "source code," Netscape is
betting that it can encourage third-party software companies to create
improvements on its products, which will be submitted back to Netscape and
included in future versions of the product line. "It's a brilliant move,"
said Bruce Smith, an analyst at Merill Lynch & Co. "By giving away their
source code, they can enlist an army of unpaid developers to work on their
side."

Title: Analysis: A Concession and a Push in Browser War
Source: New York Times (C1,C5)
http://www.nytimes.com/library/cyber/week/012398microsoft-side.html
Author: Steve Lohr
Issue: Internet
Description: Netscape announced yesterday that they will begin distributing
their browser products for free. This tactic is the same one used by
Microsoft since 1995 in an effort to catch up with Netscape in the browser
market. But even more surprising is that Netscape plans to freely license
the basic computer code for its browser products which allow users to tailor
the Netscape technology for their own use. By freely licensing its source
code, Netscape hopes to draw software developers around its technology
standard and then push that standard forward. "This is a very powerful play
by Netscape," said James F. Moor, president of Geopartners Research Inc., a
consulting company in Cambridge, MA. "The company is going back to its
roots. Netscape grew so rapidly because it first created a community and
that community became a force."

Title: Netscape Offers Web Browser for Free
Source: Washington Post (G3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/23/165l-012398-idx.html
Author: Elizabeth Corcoran
Issue: Internet
Description: Netscape Communications Corp. said yesterday that it will begin
to give away its Navigator software for browsing on the Web. The company
also plans to let other software developers contribute features for future
products. "Our business has evolved beyond the browser," said Netscape chief
executive, James Barksdale. Netscape is increasing its efforts to build
software for corporations and promote its Web site as a place where
companies can advertise and consumers can purchase software. "It's not a
surprise, and from a [software] and content developer's perspective we're
happy to see equal competition" between Netscape and its chief rival,
Microsoft, said Jerry Yang, co-founder of Yahoo Inc.

** Lifestyles **

Title: Seats With Computers Add New Dimension to Games
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/012398super-side.html
Author: Matt Richtel
Issue: Lifestyles!
Description: "Stadiums may soon feature a new technology called ChoiceSeat,
which puts computer/television monitors on the arms of individual seats. The
touch-screen computers, which are being tested at Qualcomm Stadium during
the Super Bowl on Sunday, not only will provide live game coverage, instant
replays and updated game statistics, but they also will sell merchandize and
take food orders. 'Not only can you order souvenirs, you can order a beer,'
said Larry Kopald, chief creative officer for Think New ideas, a Los Angeles
advertising firm that has worked with ChoiceSeat. 'You'll be able to have
the concession delivered right to your seat!'" ChoiceSeat plans to
capitalize on the increasing use of computers to market directly to sports
fans and the newfound affordability of bandwidth and computer technology.
Now in one stop, fans can tap into technology, attend the game and remain a
couch potato. [But does it do Windows?]
*********
And we are outta here. Have a great weekend -- see you Monday. (You knew we
had to get one SuperBowl story in)