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Electronic Commerce
NYT: Mail-Order Retailers Retreat on Tax Deal

Internet
NYT: From Jail and Boardroom, A Street Fight for the Internet
NYT: Tiny Web Broadcasters Return to Radio Days

Mergers
NYT: U.S. Acts to Bar Chancellor Media's L.I. Radio Deal

Legislation
TelecomAM: McCain and Burns Lay Out Agenda For 1998 Congressional Session

Telephone
TelecomAM: Bell Atlantic N.Y. to File LD Application with FCC In January
TelecomAM: Bell South Files with FCC For Louisiana InterLATA Authority
TelecomAM: Ameritech Clec Unit Files Tariffs In Missouri For First Local Foray
WSJ: Italy's New Telecom Alliances Face Tall Regulatory, Competitive
Hurdles

Advertising
NYT: All Aboard for Campaign for a Few Good Mentors

Content
NYT: A Hearing Focuses on Lyrics Laced With Violence and Death

** Electronic Commerce **

Title: Mail-Order Retailers Retreat on Tax Deal
Angry Customers Hinder Mail-Order Tax Accord
Source: New York Times (A1/C1)
http://www.nytimes.com/yr/mo/day/news/financial/mailorder-sales-tax.html
Author: David Cay Johnston
Issue: Electronic Commerce
Description: Angry customer calls have some mail-order retailers backing a
was from a deal reported in the NYT yesterday. In the proposed deal,
mail-order retailers would begin collecting taxes on out-of-state purchases
in return for protection against multiple audits, the right to run
promotions and the right to maintain a limited business presence outside of
a home state. The public reaction "makes it a lot less likely that there
will ever be an agreement," said H. Robert Wientzen, president of the Direct
Marketing Association.

** Internet **

Title: From Jail and Boardroom, A Street Fight for the Internet
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/cyber/week/110797kashpureff.html
Author: Peter Wayner
Issue: Internet
Description: A look at two central figures in the Internet domain name
controversy: Network Solution's Gabriel Battista and Eugene Kashpureff,
formerly of AlterNIC. The men have vastly different opinions about how the
domain name system (DNS) should be run: Mr. Battista prefers today's system:
his company has monopoly control on top-level domain names and is making a
good business of it. Mr. Kashpureff believes that there should be many
top-level domain registrars, all of them competing to offer the most
reliable service at the lowest prices. Long article includes Mr.
Kashpureff's protest act.

Title: Tiny Web Broadcasters Return to Radio Days
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/cyber/nation/110797nation.html
Author: Jason Chervokas & Tom Watson
Issue: Internet Content/Radio
Description: Radio is hot again. Not only are radio stations hot commodities
right now, but webcast "radio shows" are reminiscent of radio's early days.
The Wicca Pagan Broadcast Network, for example, has attracted a small, but
dedicated following among New Agers. "Just like a real Marconi station with
the exception of everything being on the Internet," boasts its creator,
Talisman Winterhawk. This show and thousands like it are springing up all
over the Web and -- because they don't use radio spectrum -- are not subject
to Federal Communications Commission regulation. (Article lists URLs for a
number of webcast sites).

** Mergers **

Title: U.S. Acts to Bar Chancellor Media's L.I. Radio Deal
Source: New York Times (C10)
http://www.nytimes.com/yr/mo/day/news/financial/radio-merger.html
Author: David Johnston
Issue: Mergers/Radio
Description: After approving more than 1,000 station mergers since passage
of the Telecom Act of 1996, the Justice Department filed suit to block one
for the first time. The department contends that Chancellor Media's plan to
buy four popular radio stations in Long Island would undercut competition,
drive up radio advertising rates, result in higher prices for consumers.
(Joel Klein, where have you been all my life?) Chancellor disagrees with the
department's conclusions: "The Government didn't mention the strong
pro-competitive benefit that you get from radio consolidation that allows
this group to compete more directly with other advertisers."

** Legislation **

Title: McCain and Burns Lay Out Agenda For 1998 Congressional Session
Source: Telecom A.M.---Nov. 7, 1997
http://www.capitol( at )cappubs.com/
Issue: Legislation
Description: Senators John McCain and Conrad Burns spelled out plans to
hold hearings in the Commerce Committee and the Communications Subcommittee
on local competition, Section 271 applications, slamming, satellites, cable
rates, and tower-siting issues in an effort to analyze the Telecom Act of
1996. McCain said, "I want to reach beyond the rhetoric to identify real
problems and develop real solutions, either through FCC oversight or, where
necessary, by legislation." McCain noted that the hearings are necessary due
to rising phone and cable rates, increasing consolidation and continuing FCC
rules.

** Telephone **

Title: Bell Atlantic N.Y. to File LD Application with FCC In January
Source: Telecom A.M.---Nov. 7, 1997
http://www.capitol( at )cappubs.com/
Issue: Long Distance
Description: Bell Atlantic N.Y. has put the New York PSC on notice that
it intends to petition the FCC for interLATA long-distance authority in New
York during the first week in January 1998. They also asked the PSC to
endorse its petition and confirm that Bell Atlantic has met the competitive
local checklist outlined in federal law. In its PSC filing, Bell
Atlantic says it has irreversibly opened New York's local phone market and
is meeting all requirements for offering long distance in its own region.
They said
they've signed 33 interconnection agreements with competitive providers in
N.Y., and have sold more than 108,000 lines wholesale to local exchange
resellers serving N.Y. businesses and residents. James Cullen, president and
CEO of Bell Atlantic's telecom group, said, "New York is the brass ring. The
$7 billion a year long-distance market is home to 61 of the Fortune 500
companies, and we must begin to serve it."

Title: Bell South Files with FCC For Louisiana InterLATA Authority
Source: Telecom A.M.---Nov. 7, 1997
http://www.capitol( at )cappubs.com/
Issue: Long Distance
Description: Bell South asked the FCC to approve its petition for
interLATA long distance service in Louisiana, one of the 2 states in its
region that
have endorsed BellSouth interLATA entry. The Louisiana PSC on Aug. 20
determined that the Bell company met open-local-market requirements of the
Telecommunications Act of 1996. Bell South said it has signed local
interconnection agreements with 87 competitors that "want to do business" in
Louisiana. They also mentioned that they've lost 10,000 customers to
wireline and wireless local competitors in New Orleans, Baton Rouge, and
Shreveport. AT&T called BellSouth's application "a campaign to wear down
policy makers."

Title: Ameritech Clec Unit Files Tariffs In Missouri For First Local Foray
Outside Region
Source: Telecom A.M.---Nov. 7, 1997
http://www.capitol( at )cappubs.com/
Issue: Competition
Description: Ameritech Communications Inc., the competitive local
exchange carrier (CLEC) business unit of Ameritech, has filed tariffs with
the Missouri PSC for Ameritech's first offering of local exchange phone
service to customers outside of its five-state region. Pending PSC approval
on filed tariffs for local toll and interstate long distance service, ACI
plans to
market packages of local, interexchange and wireless phone services in the
St. Louis area in early '98. ACI is a familiar name already, since it
provides local exchange service to 500,000 customers in the Illinois portion
of St. Louis's metro area.

Title: Italy's New Telecom Alliances Face Tall Regulatory, Competitive Hurdles
Source: Wall Street Journal (B16B)
http://www.wsj.com/
Author: Jennifer L. Schenker
Issue: International
Description: A series of setbacks is roiling the telecom alliances
emerging in Italy. Delays in the issuing of Italy's third mobile license and
an unclear regulatory environment may curb competition in Italy when the
European telecom market opens to competition in January. This problem
underscores the ones that new entrants will have in challenging Europe's
phone monopolies, like Telecom Italia SpA.

** Advertising **

Title: All Aboard for Campaign for a Few Good Mentors
Source: New York Times (C10)
http://www.nytimes.com/yr/mo/day/news/financial/mentoring-ad-column.html
Author: Stuart Elliott
Issue: Advertising
Description: The ability of the communications industry to change their
behavior for what are deemed laudable causes is being tested by an ambitious
project from the people who brought you the designated driver campaign. An
effort to promote mentoring has gained support from six television networks
who will work with nonprofits like One to One/The National Mentoring
Partnership, Big Brothers Big Sisters of America and the Points of Light
Foundation.

** Content**

Title: A Hearing Focuses on Lyrics Laced With Violence and Death
Source: New York Times (A19)
http://www.nytimes.com/[available via search]
Author: David Stout
Issue: Content
Description: A hearing called by Sen. Sam Brownback (R-Kansas) examined the
effects of music on children. One parent testified to urge mandatory content
warnings for themes of violence, sex, drugs and death (there goes my Kiss
collection). A representative from the recording industry noted that it has
been labeling voluntarily since 1985 and mandatory labeling would "smack of
censorship."
*********

Microsoft
WP: Microsoft Tactics Draw Hill Criticism
WSJ: How Microsoft Lost Cloak of Invincibility While Getting On-Line
WSJ: Microsoft Is Poised to Control Commerce on Internet,
Witnesses Tell Senate Panel
TelecomAM: Microsoft Criticized at Senate Judiciary Hearing
NYT: Microsoft Seems Near Deal to Invest in US West Cable TV

Telephone
NYT: U.S. Opposes Application By BellSouth
WSJ: U.S. Opposes Long-Distance By BellSouth
NYT: AT&T Will Simplify Its Pricing Structure
TelecomAM: Competitors Lambaste AT&T for Rate Changes

Minorities
TelecomAM: Black Caucus Lobbies New FCC Head to Remember Minorities
TelecomAM: BellSouth Unit Creates Spanish Language Small
Business Telecom Web Site
Internet
WSJ: Ban on New Taxes For Internet Services Passes Senate Panel
WP: University Tries to Pull Plug on Internet Term-Paper Mills

Newspapers
WP: Finally, Some Good News for Newspapers?

FCC
FCC: Commissioner Gloria Tristani Names Personal Staff

** Microsoft **

Title: Microsoft Tactics Draw Hill Criticism
Source: Washington Post (C9)
http://www.washingtonpost.com/wp-srv/WPlate/1997-11/05/0651-110597-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: At a hearing yesterday, Sen. Orrin Hatch (R-Utah) expressed
worries about Microsoft's expansion into cyberspace. "I have serious
concerns about Microsoft's recent efforts to exercise its monopoly power,"
he said. Kevin J. Arquit, a former FTC lawyer, told the committee that
regulators must act quickly when trying to enforce antitrust laws in the
computer industry. Only Charles Rule, head of the Justice Dept.'s antitrust
division during the Reagan administration, said regulators should refrain
from meddling in the market. Sen. Hatch used a licensing agreement between
Microsoft and Earthlink Network Inc. as a "textbook example of an artificial
entry barrier" used by Microsoft against competitors. Microsoft wasn't
present at this hearing. A Microsoft spokesman, Mark Murray, said, "It's
clear that the committee heard a great deal of misinformation from our
competitors. We believe once they've looked at the facts, they'll agree
there's lots of competition on the Internet."

Title: How Microsoft Lost Cloak of Invincibility While Getting On-Line
Source: Wall Street Journal (A1)
http://wsj.com
Author: Don Clark
Issue: Online Services
Description: Bill Gates, chairman of Microsoft Corp., agreed not to
collect money owed by thousands of subscribers to their online service
because of foul-ups in its billing system. The move cost them more than $20
million in revenue, says Laura Jennings, a VP who manages the service.
"Every time I go to the board, I have to apologize for the billing system."
The Microsoft Network itself is losing $200 million a year, and has angered
a variety of customers with an endless series of missteps, strategy
flip-flops and internal confusion. What went wrong? Remarkably enough,
Microsoft's feared leverage in software often turned into a liability.
Clunky e-mail, bloated software that was difficult to install, and
Hollywood-style programming were some of the problems that have plagued MSN
for 2 years. AOL -- with plans to expand --now has 9 million subscribers as
compared to MSN's 2.3
million. Bill Gates remains confident in MSN's track
record with their rivals as perhaps one of the world's most powerful
companies. But, Microsoft's failure to enter new markets fast enough is
evidence enough that they can't always steamroll the competition.

Title: Microsoft Is Poised to Control Commerce on Internet, Witnesses Tell
Senate Panel
Source: Wall Street Journal (B6)
http://wsj.com
Author: John R. Wilke
Issue: Antitrust
Description: Internet and antitrust witnesses said they enjoyed the
free-wheeling, fast-growing medium, but also said that they felt threatened
by Microsoft's market power. If Microsoft controls Internet access through
its Windows software, then it can steer customers to favored affiliates when
they begin to shop on-line, they said. Microsoft responded to the implied
charged against them concerning the antitrust violations, saying that it
doesn't limit consumer access to competing browser software. Jack Krumholtz,
Microsoft's Wash. lobbyist, added that, "it is very easy to change
browsers--the user decides." But, the consequences of Microsoft dominating
Internet commerce as well reach into many other industries, not just
software. Kevin Arquit, a former FTC lawyer, said, "The handwriting is on
the wall...it's a crisis."

Title: Microsoft Criticized at Senate Judiciary Hearing
Source: Telecom AM
http://capitol.cappubs.com/am/
Issue: Antitrust
Description: At a Senate Judiciary hearing on "Computer Innovation and
Public Policy
in the Digital Age," a number of participants fired shots at Microsoft: "I
have not made any secret of the fact that I have serious concerns about
Microsoft's recent efforts to exercise its monopoly power, and that I plan
to continue to examine the company's practices," said Sen. Orrin Hatch
(R-UT), committee chair. "I would like to emphasize that this hearing is not
a hearing on Microsoft." President and CEO Edward Black of the Computer &
Communications Industry raised concerns about Microsoft's attempt to gain
control of the World Wide Web and the Internet: "Enforcers should watch out
for companies that monopolize related markets through control of 'gateways'
through which consumers obtain information."

Title: Microsoft Seems Near Deal to Invest in US West Cable TV
Source: New York Times (D1)
http://www.nytimes.com/library/cyber/week/110597microsoft.html
Author: John Markoff
Issue: Cable/Mergers
Description: Microsoft appears to be close to investing $1 billion in US
West cable operations. The investment would get the software giant a 6.3%
share of that cable business at current stock prices. Microsoft made a
similar deal with Comcast in June and was reportedly close to a similar deal
with TCI, but those talks have been tabled. Bill Gates and Microsoft have
been pushing for cable operators to upgrade their systems so that they can
become the primary providers of high-speed access to the Internet and
Microsoft can become the major software player in set-top boxes.

** Telephone **

Title: U.S. Opposes Application By BellSouth
Source: New York Times (D1)
http://www.nytimes.com/yr/mo/day/news/financial/bell-longdistance.html
Author: Seth Schiesel
Issue: Telephone Regulation
Description: The Justice Department recommended yesterday that BellSouth not
be allowed to offer long distance service in South Carolina. The department
ruled that the regional Bell telephone company has not opened its local
network enough to merit its entry into the $80 billion long-distance market.
Justice's antitrust division chief Joel Klein said that BellSouth has made
"important progress" in opening its markets but "Much remains to be done,
however, to insure that the market is open to competition in the way
Congress intended." BellSouth claims the Justice Department exceeded its
authority, but consumer advocates cheered the decision.

Title: U.S. Opposes Long-Distance By BellSouth
Source: Wall Street Journal (B6)
http://wsj.com
Author: Bryan Gruley
Issue: Telephone Regulation
Description: The Justice Dept. recommended that BellSouth's bid to enter
the long-distance business be rejected on grounds that the company needs to
do more to open its local markets to competition. The 5 Baby Bells have been
barred from offering long-distance service in their own regions since the
'84 breakup of AT&T.

Title: AT&T Will Simplify Its Pricing Structure
Source: New York Times (D6)
http://www.nytimes.com/yr/mo/day/news/financial/att-prices.html
Author: Seth Schiesel
Issue: Long Distance
Description: AT&T will reduce from 33 to three the number of different rates
a residential customer may pay for long distance calls when they are not in
a special calling plan. After the changes go into effect on Saturday **
distance will no longer factor into the cost of a long distance call.** The
tree different rates will be affected by the time the call is placed.

Title: Competitors Lambaste AT&T for Rate Changes
Source: Telecom AM
http://capitol.cappubs.com/am/
Issue: Long Distance
Description: BellSouth and Sprint criticized AT&T's new basic rates based on
time periods instead of distance. BellSouth predicted that AT&T would not
pass savings on to consumers if access charges were dropped: "Here we are,
six months later and AT&T rates already are going up again. The other big
long-distance companies have already raised their rates in lock step,"
BellSouth's Vice President of Governmental Affairs David Markey said. AT&T
is extending peak hour periods.

** Minorities **

Title: Black Caucus Lobbies New FCC Head to Remember Minorities
Source: Telecom AM
http://capitol.cappubs.com/am/
Issue: FCC/Minorities
Description: Eleven members of the Congressional Black Caucus have sent new
FCC Chairman Kennard a letter asking him to do what he can to speed local
and long distance competition in African-American communities. The letter
was sent because of concerns that some carriers will ignore inner-city and
rural areas: "...new market entrants have focused on selectively serving a
few high-profit, major business customers," the letter said. "Indeed,
communications 'redlining' evidently is a part of the business plan of some
companies."

Title: BellSouth Unit Creates Spanish Language Small Business Telecom Web Site
Source: Telecom AM
http://capitol.cappubs.com/am/
Issue: Minorities
Description: To better serve the 175,000 hispanic-owned businesses with its
region, BellSouth Small Business Services has launched a Spanish language
telecom website www.smlbiz.bellsouth.com/espanol. Julio Perez, Hispanic
marketing manager for BellSouth Small
Business Services said, "This site offers Hispanic businesses a vast array
of business resources and valuable information in Spanish." Features include
news, a list of business resources, a product catalog and a survey to hear
back from customers.

** Internet **

Title: Ban on New Taxes For Internet Services Passes Senate Panel
Source: Wall Street Journal (B6)
Issue: Internet Regulation
Description: The Senate Commerce Committee approved the Internet Tax
Freedom Act introduced by Sen. Ron Wyden of Oregon. It prevents states and
municipalities from levying new taxes on Internet commerce for 5 years;
existing taxes aren't affected. This was done due to the fear among Internet
businesses that the nation's 30,000 taxing authorities may hinder 'Net
commerce by taxing transactions. Sen. Wyden said, "Just think of the
prospect of thousands of mini-IRS taxing authorities collecting Internet taxes."

Title: University Tries to Pull Plug on Internet Term-Paper Mills
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-11/05/1341-110597-idx.html
Author: Rene Sanchez
Issue: Ed Tech
Description: There is evidence of a flourishing online term paper
industry that's now a part of a lawsuit that has captured the attention of
campuses around the nation. Robert Smith, counsel to Boston University,
said, "This is a serious issue of academic integrity. It's getting
ridiculous. You can practically pay for your homework on the Internet now."
On some Web sites, students can get access to a paper just by typing their
credit card numbers onto a computer screen. Other colleges have spotted Web
sites offering lecture notes and even admissions essays to high school
students. Since the suit filed, there were some doubts of its success
because the sites may be protected by a right to free speech and disclaimers
on the Web sites themselves. Robert O'Neill, a law professor at the Univ. of
Virginia, said, "...the issues the case presents are difficult. We're in a
new era."

** Newspapers **

Title: Finally, Some Good News for Newspapers?
Source: Washington Post (C9)
http://www.washingtonpost.com/wp-srv/WPlate/1997-11/05/0661-110597-idx.html
Author: Paul Farhi
Issue: Newspapers
Description: The causes for the newspaper's decline in circulation are
many, according to experts. Higher newsstand prices, intense competition
from electronic media, and the simple time pressure of modern life.
Newspaper analysts say daily papers could be on the verge of regaining some
lost popularity with more people entering their prime newspaper-reading
years. Profits have remained strong as they have increased rates and prices.
Moreover, one of the key reasons for the decline--a deliberate cut back on
circulation outside "core markets"--may be playing itself out. Those cuts
being complete, newspapers are focusing on building up circulation in
close-in markets, said John Sturm, president of the Newspaper Assoc. of
America. Tom Curley, president and publisher of USA Today, said, "I think
the future is very positive, the way the public gets its news could switch
back to newspapers."

** FCC **

Title: Commissioner Gloria Tristani Names Personal Staff
Source: FCC
http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1997/nrmc7082.html
Issue: FCC
Description: Rick Chessen has been appointed to Senior Legal Advisor. In
this role, he will advise the Commissioner on cable and mass media issues.
Chessen has recently served as Deputy Chief of the Policy and Rules Division
in the Cable Services Bureau. Karen Gulick has been named as Legal Advisor
on wireless and international issues. Gulick has served as the Assistant
Bureau Chief of the Wireless Telecommunications Bureau at the Federal
Communications Commission. Prior to her work in the Bureau, she served as
Special Counsel to General Counsel William E. Kennard and as interim Legal
Advisor to Commissioner Susan Ness. Paul Gallant has been named as Legal
Advisor on common carrier issues. Gallant has recently served as Legal
Advisor to Commissioner Quello and before that served as Legal Counsel to
the Chief of the Common Carrier Bureau. Helen Hillegass has been named as
Confidential Assistant.

*********

Television
NYT: Advertising: GM Sponsors Documentary Maker to Reach PBS Viewers
NYT: Could NBC Live Without "E.R."?
NYT: Satellite TV Provider Waits for World to Catch Up
B&C: Tauzin ponders program-access "fine-tune"

Internet
WSJ: Senate Internet Panel to Probe Microsoft's Power
NYT: Publication Date Open to Dispute In Internet Age
NYT: No Card Necessary at Net Libraries
NYT: Going From a Crawl to a Run
NYT: B-schools are gearing up for electronic commerce
WSJ: Looney Tunes Will Soon Star in Web Ads

FCC
B&C: It's the Kennard FCC now

Mergers
TelecomAM: Merger Mania Rages On
TelecomAM: Justice Seeks Additional Info from Worldcom on MCI Deal
TelecomAM: Worldcom and BT Chiefs Differ On Outcome of MCI Deal
WSJ: MCI Brass Set Out to Rally Dispirited Troops
WP: The Region and the Revolution

InfoTech
WSJ: Diamond Multimedia's New Modem Uses 2 Phone Lines to Double Speed

** Television **

Title: Advertising: GM Sponsors Documentary Maker to Reach PBS Viewers
Source: New York Times
http://www.nytimes.com/yr/mo/day/news/financial/gm-burns-ad-column.html
Author: Robyn Meredith
Issue: Advertising
Description: The latest Ken Burns documentary, Lewis and Clark, begins
Tuesday on PBS. Before and after each two-part program, General Motors will
run a 15-second commercial promoting its sponsorship of the film (and
slipping in a reference to the cars it sells). The automaker has spent
$15-20 million over the last ten years sponsoring Mr. Burns' films. "These
are my Medicis; these are my patrons," says the film maker. GM values the
spots because of the demographics of the PBS audience: they have higher
incomes and education levels than the average commercial television viewer.
The best part according to Mr. Burns: "They don't tell me how to make films
and I don't tell them how to make cars."

Title: Could NBC Live Without "E.R."?
Source: New York Times (D1)
http://www.nytimes.com/yr/mo/day/news/financial/tv-bidding-media.html
Author: Bill Carter
Issue: Television Economics
Description: Warner Brothers is preparing to demand $10 million per episode
for highly-rated show NBC. Most hour-long dramas get about $1 million per
episode and ER probably gets $2 million per right now. All four major
networks appear eager to land the prized show in this "NFL-type deal." The
show appears central to any network's plan on becoming #1.

Title: Satellite TV Provider Waits for World to Catch Up
Source: New York Times (D1)
http://www.nytimes.com/yr/mo/day/news/financial/ussb-stock.html
Author: Geraldine Fabrikant
Issue: Satellite
Description: Stanley S. Hubbard, founder of the United States Satellite
Broadcasting Company, has stayed true to a vision of providing satellite TV
for 16 years. USSB now delivers DirecTV which includes Time Warner and
Viacom programming like HBO, the Movie Channle, MTV, and Nickelodeon.
Because of the unwieldy agreements between the two companies, many analysts
believe that the two companies should merge, but Mr. Hubbard does not appear
keen on the idea. DirecTV/USSB is the industry leader now, but #3 player
Echo Star is approaching the one-million customer mark and is growing at a
rate faster than DirecTV.

Title: Tauzin ponders program-access "fine-tune"
Source: Broadcasting&Cable (p.22)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Cable
Description: After receiving complaints that cable programming does not come
cheap or easy, Rep Billy Tauzin (R-LA) may fine-tune cable program-access
rules. Cable programmers are supposed to provide their services to cable
competitors (like DBS and Baby Bell Ameritech which is building new cable
systems in the Midwest) on the same terms as they do to cable operators. But
vertically integrated programmers are not complying, competitors say.

** Internet **

Title: Senate Internet Panel to Probe Microsoft's Power
Source: Wall Street Journal (B2)
http://www.wsj.com/
Author: John R. Wilke
Issue: Internet Regulation
Description: "Microsoft now has the ability to virtually annihilate any
competitive product it wants by bringing it into the next version of
Windows," said Senate Judiciary Committee Chairman Orrin Hatch. He
continued, "there's evidence that they are aggressively seeking to extend
that monopoly to the Internet, and policy makers have to be concerned about
it." Hatch's rising alarm about this issue has given bipartisan political
support to the new antitrust chief, Joel Klein. Kevin Arquit, a former FTC
official, has agreed to testify that Microsoft is poised to dominate
information and commerce on the 'Net. "If they control content on the
Internet, they can control the information people get, and that is a serious
public policy concern." Microsoft has continued to deny the allegations in
their entirety, with a spokesman saying recently, "We don't believe anyone
is going to be the gatekeeper of the Internet."

Title: Publication Date Open to Dispute In Internet Age
Source: New York Times (D1)
http://www.nytimes.com/library/cyber/week/110397libel.html
Author: Robin Pogrebin
Issue: Publishing
Description: Online publishing has raised a number of questions like 1) who
is the publisher -- the electronic carrier or the magazine company; 2) where
is the publishing location -- where the work is uploaded or downloaded; and
3) when is the publication date -- when a work is available online or in
paper. The latter question came before the courts last week when Business
Week contended that New York's one-year statute of limitations for libel
claims expired one year after an issue of the magazine was made available
online.

Title: No Card Necessary at Net Libraries
Source: New York Times (D4)
http://www.nytimes.com/library/cyber/sites/110397sites.html
Author: John Dvorak
Issue: Libraries
Description: The proliferation of library websites is a lesser-known story
of the Internet. Many university and public libraries are making their card
catalogs available on the Web -- and, coupled with interlibrary loans, this
is making research a lot easier. But some sites are also making the full
text of some works available online, too: "in essence creating a virtual
research library reading room." Library Webmasters also provide some of the
best lists of favorite sites -- often a useful alternative to search engines
like Yahoo. Story includes a number of useful links like Public Libraries
with online services
http://sjcpl.lib.in.us/homepage/PublicLibraries/PubLibSrvsGpherWWW.html#www
srv, the Library of Congress http://www.loc.gov/, and New York Public
Library http://www.nypl.org/. [For more on libraries in the digital age
see Local Places, Global Connections: Libraries in the Digital Age
http://www.benton.org/Library/Libraries/ and Buildings, books, and bytes:
Libraries and communities in the digital age
http://www.benton.org/Library/Kellogg/buildings.html]

Title: Going From a Crawl to a Run
Source: New York Times (D5)
http://www.nytimes.com/library/cyber/week/110397web.html
Author: Sreenath Sreenivasan
Issue: Internet Content
Description: A look at Eliot Christian and the Global Information Locator
Service (GILS) http://www.fedworld.gov/gils. The project started as a way
to make global environmental data more accessible and is now a far-reaching
collaboration between government agencies, industry, and academia in the US
and elsewhere to make standardize government data access. Says the
University of Pittsburgh's Toni Carbo, "The US Government is the world's
largest producer and user of information. For business executives,
researchers and individual citizens to have access to that information is
essential. GILS helps in that process because it serves as an atlas that
combines all the maps to the territory in one place."

Title: B-schools are gearing up for electronic commerce
Source: New York Times (D5)
http://www.nytimes.com/library/cyber/digicom/110397digicom.html
Author: Peter Lewis
Issue: Electronic Commerce
Description: Business schools are beginning to graduate a new breed of MBAs
that are "degree-carrying specialists in electronic commerce." Vanderbilt's
Professor Donna Hoffman says, "It sells management short to say that the
Internet is just another tool. What we teach here is that this is a
revolution. And it's very important to understand how the unique elements of
this interactive medium can be used to devise new ways of competing and new
strategies. See Vandy's Project 2000 http://www2000.ogsm.vanderbilt.edu/
as well as the Center for Research and Electronic Commerce at UT Austin
http://cism.bus.utexas.edu.

Title: Looney Tunes Will Soon Star in Web Ads
Source: Wall Street Journal
http://www.wsj.com/
Author: Jared Sandberg
Issue: Advertising On-Line
Description: Today, Warner Bros. will announce a technology-licensing
accord that will make characters like Bugs Bunny and Wile E. Coyote become a
new breed of "Web spokes-characters". The hope is that these characters will
win over consumers who usually balk at interactive advertising, encouraging
corporate advertisers to sign up to sponsor the characters' Web wanderings.
Aaron Sugarman, VP and creative director of Agency.com Ltd., said, "Right
now the Net is all too quiet...it's an unusual and uncomfortable brand
space, because you're used to marketing communications singing and dancing.
You don't see that on the Web."

** FCC **

Title: It's the Kennard FCC now
Source: Broadcasting&Cable (p.6)
http://www.broadcastingcable.com/
Author: Paige Albiniak & Chris McConnell
Issue: FCC
Description: After confirmation of William Kennard, Gloria Tristani, Michael
Powell and Harold Furchtgott-Roth last week, the new commissioners are
expected to sworn in today in a private ceremony. Vice President Gore plans
an open "formal" swearing in by weeks end. (Mr. Powell and Mr.
Furchtgott-Roth are not expected to attend that ceremony).

** Mergers **

Title: Merger Mania Rages On
Source: Telecom A.M.---Nov. 3, 1997
http://www.capitol( at )cappubs.com
Issue: Mergers
Description: The scale of merger and acquisition activity in the U.S. has
hit a record with transactions valued at $749 billion so far this year. The
worldwide record is $1,305 billion worth of takeovers announced so far this
year. After the U.S., Europe ranks second with $335 billion in deals, and
Asia ranks third with $69 billion in takeovers. Gary Parr, co-head of global
mergers and acquisitions at Morgan Stanley, said the boom had been driven by
"certain industries undergoing dramatic consolidation due to deregulation
and globalization." He also said, "The bulk of merger activity is strategic
and a number of industries are still very fragmented. There is a lot more to
be done."

Title: Justice Seeks Additional Info from Worldcom on MCI Deal
Source: Telecom A.M---Nov. 3, 1997
http://www.capitol( at )cappubs.com
Issue: Mergers
Description: The Dept. of Justice has asked Worldcom for additional info
on its bid for MCI in order to satisfy the stipulations of the
Hart-Scott-Rodino Antitrust Improvements Act of 1967. Worldcom "fully
expected" the request, and used the chance to build its case in print in a
release on the issue. It said that a Worldcom/MCI deal would "accelerate
competition--especially in the local markets--by creating a company with the
capital, marketing abilities and a state-of-the-art network."

Title: Worldcom and BT Chiefs Differ On Outcome of MCI Deal
Source: Telecom A.M.---Nov. 3, 1997
http://www.capitol( at )cappubs.com
Issue: Merger
Description: Where the MCI deal is headed next amidst all of the
massive bids for its shares is now the subject of rising controversy.
Investors expressed concern about the impact of turbulence in the U.S. stock
market on Worldcom's all-stock bid for MCI. Worldcom's stock, as it stands
now, is valued less than what they offered for each of MCI's $40 shares. Sir
Peter Bonfield, a BT chief exec, said BT believes that its 20% stake in MCI
and it 75% ownership of their joint venture, Concert Communications, gives
it "significant rights" that could influence the outcome of the merger
battle. He refused to elaborate.

Title: MCI Brass Set Out to Rally Dispirited Troops
Source: Wall Street Journal (B1)
http://www.wsj.com/
Author: John Helyar
Issue: Mergers
Description: MCI spotted a disturbing trend following the three
record-breaking bids: sales slumped. In an effort to "rally the troops" at
MCI, a new campaign code-named "Rainmaker" was designed to reassure and
reaffirm faith in the company in employees, customers, and even competitors.
The campaign's running theme is "MCI: Our star is rising. Rise with it." Its
message to competitors is slightly different, however: "Our prime motive is as
always: crushing you in the marketplace with better products, prices, and
service." MCI officials insist that this isn't an effort to counter
demoralization, sales actually perked up after each downturn. They merely
want to get in front of a problem that could only get worse as the bidding
war rages on. "We probably overreacted, but it puts us in an offensive
position," says Brian Brewer, a business-markets senior VP who heads the
campaign. "That's vintage MCI."

Title: The Region and the Revolution
Source: Washington Business (WashTech, p.21)
http://www.washingtonpost.com/wp-srv/WPlate/1997-11/03/0111-110397-idx.html
Author: Mike Mills
Issue: Mergers
Description: The Washington region has been central to the era of
competitive telecommunications ever since William McGowan moved MCI Corp. to
the District 25 years ago this fall. Communications technology companies
have employed at 86,000 people and have a combined revenue of $26 billion,
according to the Potomac Knowledgeway Project. On Oct. 21 nearly a thousand
people came to N. Virginia to hear from Nextel's founder Morgan O'Brien;
Orion Network Systems Chairman John Puente; LCI Internat'l Corp. Chairman
Brian Thompson; cellular financier Mark Warner; and Mario Marino, a software
millionaire. Marino said, "The region possesses a remarkable concentration
in the communications sector...it is arguably the hub of the
telecommunications industry..." The region's strength as a technology center
is focused on telecommunications and information, rather than computing.
"But," Marino continued, "we are now beginning to usher in a new era of the
convergence of communication, computing and content."

** Info Tech **

Title: Diamond Multimedia's New Modem Uses 2 Phone Lines to Double Speed
Source: Wall Street Journal (B8)
http://www.wsj.com
Author: Lee Gomes
Issue: Info Tech
Description: Diamond Multimedia Systems is to unveil today a modem that
connects to two phone lines and runs 112 kilobits, twice as fast as the
current top speed for one phone line. These "bonded modems" are expected to
cost under $200 and will ship out early next year. Nearly on quarter of
U.S. homes have more than one phone line. This new modem is likely to be
only "stopgap technology", with even faster systems like the cable modem and
"subscriber digital link" technology that promises connection speeds in the
millions of bits per second.
*********

FCC
TelecomAM:
FCC: Nominees Approved: Additional Info

Regulation
NYT: Is a Better CDA Preferable To Opaque Censorship?
NYT: FCC Suggests V-Chips for PCs
TelecomAM: Computer Industry Should Be Driven By Competition, Not
Regulation

Spectrum
TelecomAM: FCC Fines Wireless Carrier For Cheating In Auction

** FCC **

Title: It's Official: Senate Clears FCC Nominations
Source: Telecom AM---Oct. 30, 1997 http://capitol.cappubs.com/am/
Issue: FCC
Description: The Senate confirmed William Kennard as FCC chairman in an
overwhelming vote, 99-1, with Sen. Conrad Burns casting the sole dissenting
vote. They also OK'd the three other nominees and all will be sworn into
office as early as Nov. 7, according to an FCC official. Kennards's
confirmation wasn't without some concern from the Senate as to how he will
deal with the many issues that outgoing Chairman Hundt left behind. Sen.
Burns said that Kennard should be deemed guilty by association. Another big
point of concern, expressed by Sen. John McCain, R-Ariz., is Kennard's
involvement with an FCC that hasn't been in the Congress' favor for some time.

Title: Nominees Approved: Additional Info
Source: FCC
http://www.fcc.gov
Issue: FCC
Description: Additional information on the new FCC Commissioners
http://www.fcc.gov/commissioners/nominees/welcome.html; statement by new
FCC Chairman Bill Kennard
http://www.fcc.gov/Speeches/Kennard/Statements/stwek702.html; statement of
outgoing Chairman Reed Hundt http://www.fcc.gov/Speeches/Hundt/st971029.html.

** Regulation **

Title: Is a Better CDA Preferable To Opaque Censorship?
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/cyber/law/103097law.html
Author: Carl Kaplan kaplan( at )nytimes.com
Issue: Communications Decency Act
Description: Professor Lawrence Lessig of Harvard Law School believes that
the filtering software touted by civil libertarians in Reno vs. ACLU may be
far more restrictive than the Communications Decency Act. "Promoting a
CDA-like solution to the 'problem' of indecency is very much to step out of
line," he writes. "I am not advocating a CDA-like solution because I believe
there is any real problem. In my view, it would be best just to let things
alone. But if Congress is not likely to let things alone, or at least if the
President is more likely to bully a private solution then we need to think
through the consequences of these different solutions...We may well prefer
that nothing be done. But if something is to be done, then whether through
public or private regulation, we need to think about its consequences for
free speech." [For additional information see the CyberTimes CDA HomePage
http://www.nytimes.com/library/cyber/week/cda-index.html or Benton's
Telecom Act of 1996 Homepage (http://www.benton.org/Policy/96act/#restrictions)]

Title: FCC Suggests V-Chips for PCs
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/cyber/week/103097vchip.html
Author: Jeri Clausing
Issue: V-Chip/Internet
Description: The Federal Communications Commission is considering requiring
V-chips to be installed in all new computers. The proposal reflects the
converging of PC and TV technology. "I think that the risk of this kind of
approach is that instead of capitalizing on the user empowerment potential
that the Internet has, the FCC risks dragging the Internet as an interactive
and empowering medium back to the state of television, which offers users
very little control," said Daniel Weizner, deputy director of the Center for
Democracy and Technology http://www.cdt.org. The FCC's proposed rules are
available at
http://www.fcc.gov/Bureaus/Engineering_Technology/Notices/1997/fcc97340.txt.

Title: Computer Industry Should Be Driven By Competition, Not Regulation
Source: Telecom A.M.---Oct. 30, 1997
http://capitol.cappubs.com/am/
Issue: Regulation/Competition
Description: Ira Magaziner, senior advisor to Pres. Clinton for policy
development, said that the estimates of Internet users that will come to 1
billion by 2005 and the technology used to access it will generate a
"tremendous boom in the economy," and that gov't. involvement should be
minimum. Magaziner was speaking at the 3rd annual D.C. Bar Computer and
Telecommunications Law Section conference in Technology for the Information
Age. The computer industry moves too quickly for the gov't. to regulate it,
and according to Magaziner, "It needs to be a market-driven arena."
Magaziner addressed issues of legislation that would only offer a "false
sense of security", opposition to tariffs and taxes, codes of privacy
protection, and forms of encryption.

** Television **

Title: Public Eye: TV Chases the Internet
Source: CyberTimes (Oct. 30, 1997)
http://www.nytimes.com/library/cyber/week/103097bloomberg.html
Author: Phil Patton
Issue: Television
Description: TV screens are becoming filled with logos and clocks,
thermometers and stock tickers. For more than a year, CNN's Headline News
has been fringed with a sports ticker, depending on the hour. Boxes and
boxes of print are infiltrating news channels: they represent TV's envy of
the Internet. Today, we are as likely to read television as to watch it.
George Lois, an adman who helped pioneer the conjunction of character and
image in his "I want my MTV" ads, said that today's lettered screens show "a
disjunction between word and image."
** Spectrum **

Title: FCC Fines Wireless Carrier For Cheating In Auction
Source: Telecom A.M.---Oct. 30, 1997
http://captiol.cappubs.com/am/
Issue: Spectrum
Description: The FCC fined Mercury PCS II LLC $650,000 for illegal bid
signaling in the PCS D, E, and F block auctions earlier this week. Mercury
was nailed because they placed trailing numbers at the end of 13 of its bids
which disclosed its business strategy in a reflexive manner that
specifically invited collusive behavior. The FCC's order, 97-288, said,
"Mercury's decision to use trailing bids was clearly purposeful...it
admitted that it intentionally inserted the market numbers into its bids
which in turn had the effect of conveying information to other bidders."
*********