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Corporate Retrenchment
WSJ: US West's Plan to Split Up Reflects Failure in Strategy
NYT: Two Regional Bells Take Different Paths To Growth
WP: Big Mergers Get Bigger In The '90s

Television
WSJ: As the Focus Shifts, the Big Picture Brightens at MSNBC
NYT: Satellite Broadcasters Face Higher Programming Fees
FCC: Broadcasting and the First Amendment

Online Services
WP: AOL to Raise the Curtain On Entertainment Asylum

Journalism/Advertising
WP: N.Y. Times Online Ads: Custom Service
WP: The News Business

Global Information Infrastructure
FCC: From Buenos Aires to Geneva and Beyond
NTIA: Networks for People

Electronic Commerce
WP: Online Trading Delayed

Lifestyles!
WP: With E-Mail, Absence Makes Families Fonder
TelecomAM: BellSouth Targets Young Telecom Consumers With
'Lifestyle-Based' Services

** Corporate Retrenchment **

Title: US West's Plan to Split Up Reflects Failure in Strategy
Source: Wall Street Journal
http://wsj.com/ (B4)
Author: Leslie Cauley
Issue: Convergence
Description: Analysts and industry executives say the decision to split US
West into two companies is an admission that the strategy to provide
in-region phone service and out-of-region cable service has not worked. The
split will leave US West Communications Group a stripped-down phone company
much as it was before its push into cable in 1993. It may also make the
phone company -- which serves 14 western states -- a prime target for a
takeover bid. [Yeah, like there's a chance of that in the competitive,
post-Telecom Act telecommunications market]. The Denver-based Bell has
already talked to Ameritech and SBC Communications.

Title: Two Regional Bells Take Different Paths To Growth
Source: New York Times (D12)
http://www.nytimes.com/yr/mo/day/news/financial/phones-marketplace.html
Author: Seth Schiesel
Issue: Telecommunications
Description: U.S. West announced yesterday a plan to split into two separate
telephone and cable television companies by the end of next year. After
five years of trying to integrate its telephone and cable television
services, U.S. West conceded that it had failed. Also yesterday, the
Ameritech Corporation announced that it will acquire control of Tele
Danmark, Denmark's national telephone company, for $3.2 billion in cash.
This purchase is made in a continuation of Ameritech's so-far successful
expansion into the overseas market. In response to these Bell deals, Eric
Strumingher, an analyst for Paine Webber said, "All carriers are certainly
in an accelerated phase of evaluating business opportunities, evaluating
disposition of assets and lining up the assets that will allow them to grow
earnings above the market rate."

Title: Big Mergers Get Bigger In The '90s
Source: Washington Post (A1, Oct. 27, 1997)
http://www.washingtonpost.com/wp-srv/WPlate/10/27/
Author: Tim Smart
Issue: Mergers
Description: The end-of-the-century boom in mergers and acquisitions like
the $30 billion battle for Washington's MCI Corp. is far broader and deeper
than the one that marked the heyday of the '80s. In the past 2 weeks, huge
acquisitions have been announced like the Home Shopping Network's $4.1
billion purchase of Universal Studios Inc.'s cable and TV operations. The
reasons behind "the rush" to combine are many but primarily reflect the
deregulation of large industries with too many players and the availability
of relatively inexpensive capital in the form of corporate stock trading at
high values and modest interest rates.

** Television **

Title: As the Focus Shifts, the Big Picture Brightens at MSNBC
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Kyle Pope
Issue: Cable Content
Description: MSNBC is still losing money, but analysts believe it is
becoming a valuable asset for partners General Electric/NBC and Microsoft.
The cable news network enjoyed increased ratings -- as did other news
outlets -- when viewers tuned in for info on Princess Diana, but it has done
a better job of retaining those viewers than its counterparts. The network
has also changed focus -- shows on computers and technology have been
canceled or scaled back -- replaced with celebrity features and culture
stories. Average prime-time ratings for the Big Three of cable news: Fox
News 24,000, MSNBC 99,000, and CNN 766,000.

Title: Satellite Broadcasters Face Higher Programming Fees
Source: New York Times (D10)
http://www.nytimes.com/yr/mo/day/news/financial/bird.html
Author: Bloomburg News
Issue: Television
Description: Under a ruling issued by the United States Copyright Office
yesterday, the rates that satellite broadcast companies pay to transmit
television signals will quadruple starting January 1. The rate hike will
benefit owners of tv programming at the expense of direct broadcast
satellite (D.B.S.) companies. This decision puts D.B.S. companies at a
disadvantage because cable rivals pay lower rates. "The decision defies
common sense," said Ken Johnson, a spokesman for W.J. (Billy) Tauzin (R-LA)
who is chairman of the House subcommittee on telecommunications. "It will
force consumers to pay dramatically higher rates for satellite services, and
at the same time slow down competition in the marketplace." The Satellite
Broadcasting Communications Association will ask the U.S. Copyright Office
to delay the implementation of their decision while it challenges the ruling
in court.

Title: Broadcasting and the First Amendment
Source: FCC
http://www.fcc.gov
Author: James Quello
Issue: Broadcasting/First Amendment
Description: "Dean of Communications, Jim Spaniolo, suggested that you might
be interested in my viewpoint on that contentious and pervasive subject,
'Broadcasting and the First Amendment.' My principal views were articulated
in a speech titled, 'The Reeding of the First Amendment,' which received
considerable press coverage. The speech presented opposition arguments to
Chairman Reed Hundt's pro-regulatory viewpoints, artfully expounded in
several of his well-structured speeches. Areas of contention that need
clarification include: Should broadcast spectrum be auctioned? Is allocating
digital spectrum to broadcasting really 'the biggest give-away in history?'
Should the allocation of digital spectrum to broadcasters be accompanied by
additional quantifiable public interest obligations?"

** Online Services **

Title: AOL to Raise the Curtain On Entertainment Asylum
Source: Washington Business (WashTech, Oct. 27, 1997)
http://www.washingtonpost.com/wp-srv/WPlate/10/27/0041-102797-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet: Sales and Services
Description: AOL plans to unveil a splashy online site about the
entertainment industry that will be available on AOL and the World Wide Web.
"Entertainment Asylum" will feature reviews about movies, TV shows, music,
chat rooms, and online games. The site represents AOL's effort to tap into a
much larger electronic community. Ted Leonsis, the president of the AOL
Studios division, said, "This is an opportunity for AOL to truly
diversify...now we can go for 100% of the market."

** Journalism/Advertising

Title: N.Y. Times Online Ads: Custom Service
Source: Washington Post (C1) (10/27/97)
http://www.washingtonpost.com/
Author: Howard Kurtz
Issue: Journalism/Advertising
Description: The New York Times is involved in an extraordinary marketing
effort with corporate America. Every time a reader accesses the NYTimes
Internet site, for a fee, advertisers can find out your income, age, Zip
code, credit card habits and even what kind of computer you use. These
disclosures allow advertisers to target their message to a more specific
demographic base. The NYTimes can provide marketers with this information
because when subscribers sign up for the paper's Web site they are required
to register and complete a questionnaire. Martin Nisenholtz, president of
New York Times Electronic Media, calls this "the largest and most
comprehensive" such effort on the Web. He dismisses privacy concerns by
saying, "We don't know who you are. We don't collect your name or telephone
number. We do collect your email address, but we don't sell that.
Occasionally we send out promotional New York Times information messages."
This new technology will possibly replace the pollsters and focus groups
that newspapers use today to determine who is reading what. With the
ability to find out exactly what the majority is reading, there is concern
that low-rating subjects might be altogether banished.

Title: The News Business
Source: Washington Post (A25, Oct. 27, 1997)
http://www.washingtonpost.com/wp-srv/WPlate/10/27/0341-102797-idx.html
Author: Meg Greenfield
Issue: Journalism
Description: There is a feeling among many journalists of melancholy over
what has happened to onetime serious news organizations that have seemed to
have abandoned coverage of serious news for trivia, sensationalism, and
embarrassing sexual revelations. Greenfield contends that real interesting
news is as available and accessible as it ever was, but we're often looking
in the wrong place. The evidence of public lack of interest really lies in
how journalists present a certain issue. If it's made relatable to the
audience at large, without underestimating them, then there would be more
interest in these issues. Another point made was the fact that, despite the
denials, there's a tendency among the media to think of the public as not
quite ready for or up to the seriousness of the issues themselves, and thus
are in need of melodramatic intros to capture their attention.

** Global Information Infrastructure **

Title: From Buenos Aires to Geneva and Beyond
Source: FCC
http://www.fcc.gov/Speeches/Hundt/spreh759.html
summary at
http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1997/nrmc7072.html
Author: Reed Hundt
Issue: Global Information Infrastructure
Description: FCC Chairman Reed Hundt Describes how Information Revolution is
Fueling Creation of the Global Economy. (FCC Summary) In an address
yesterday to the World Affairs Council in Philadelphia, FCC Chairman Reed
Hundt predicted that "the ability of countries, businesses, and individuals
to compete in this new global economy will be shaped by telecommunications
policy." Observing that trade in services is growing on a worldwide basis at
twice the rate of trade in goods, Hundt said that "information revolution is
a catalyst of expansion in the services sector, and in other sectors of the
economy from agriculture to manufacturing." He added that "of the 12 million
jobs created since President Clinton took office, 8 million have been in the
information sector, which now comprises one-seventh of the U.S. economy."

Title: Networks for People
Source: NTIA
http://www.ntia.doc.gov/ntiahome/press/networks102797.htm
Issue: TIIAP
Description: Commerce Department to release report and hold conference on
October 28. The conference, called "Networks for People," will be held in
the Commerce Department's auditorium from 9:00 a.m. to 5:00 p.m. on Tuesday,
October 28, with demonstrations throughout the day in the main lobby.

** Electronic Commerce **

Title: Online Trading Delayed
Source: Washington Post (A6)
http://www.washingtonpost.com/wp-srv/WPlate/10/28/0751-102897-idx.html
Author: Rajiv Chandrasekaran
Issue: Electronic Commerce
Description: Compounding the stock market dive, computer users reported
severe delays connecting to finance-related Internet sites, especially
providers of electronic trading. Yesterday was on-line trading's big test.
E*Trade of Palo Alto, Calif., reported that it handled almost double its
average daily volume of 24,000 trades. Despite complaints of many
investors, a spokeswoman for E*Trade said, "Our system was working the way
it should have...it could have been Internet traffic in general." Analysts
say the online trading is popular because of the convenience and lower
commissions. According to Forrester Research, Inc., more than 1.5 million
investors have online trading accounts.

** Lifestyles! **

Title: With E-Mail, Absence Makes Families Fonder
Source: Washington Post (A1, Oct. 27, 1997)
http://www.washingtonpost.com/wp-srv/WPlate/10/27/1441-102797
Author: Jacqueline L. Salmon
Issue: Education Technology
Description: Parents who send a son or daughter off to college know about
the availability of e-mail on campus. What they don't expect is that their
children will become frequent e-mail correspondents. E-mail has become a
different medium, a tool for spontaneous, candid, 24-hour-a-day exchanges
between parent and child that has transformed the college experience for
both of them. More than 7 million of the nation's 9 million students use
e-mail regularly, according to IDC/Link, a N.Y.-based research firm.

Title: BellSouth Targets Young Telecom Consumers With
'Lifestyle-Based' Services
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Lifestyles!
Description: BellSouth will introduced its new Teen Line Pack (no, not a new
addition to the teenage football league) in mid-November. The pack is
designed to provide families with a separate phone line for their teenagers
that are obsessed with music, fashion and food. The Teen Line Pack is the
first offering in BellSouth's Home Series Line, "a portfolio of lifestyle
packages designed to change the way people think about how they shop for
telecommunications services," said a company spokesperson.
*********

Corporate
WSJ: US West to Split Into Two Companies
NYT: Fight Tests Boundaries On Software Operations

FCC
Telecom AM: Burns Red Lights Vote On Nominees

Technology
NYT: Plan Calls for Computers To Run New York Subways
NYT: Net Day Volunteers Back to Wire Schools for Internet

** Corporate **

Title: US West to Split Into Two Companies
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Steven Lipin
Issue: Convergence
Description: The one Baby Bell that has expanded aggressively into cable --
US West -- will reportedly split their cable and telephony ventures into
separate companies with separate boards and operations. Solomon Trujillo,
CEO of US West Communications, will head the new telephone business to be
called US West, Inc. The cable company will be called MediaOne Group and
will be headed by Charles Lillis. Lipin writes that the split underscores
that "the much-sought-after convergence between the two industries failed to
materialize."

Title: Fight Tests Boundaries On Software Operations
Source: New York Times (D5)
http://www.nytimes.com/library/cyber/week/102797soft.html
Author: Laurie J. Flynn
Issue: Legal Issues
Description: At the heart of the Justice Department's complaint, filed with
Microsoft last week, is "Just what features do belong in a computer
operating system?" The answer to this question could have a far-reaching
impact on not only Microsoft's fundamental strategies for improving its
software systems, but on the software industry as a whole as it works to
improve connections between systems and to the Internet.

** FCC **

Title: Burns Red Lights Vote On Nominees
Source: Telecom A.M.
http://tpg( at )cappubs.com
Issue: FCC
Description: Due to concerns about the opinion of FCC chairman nominee
William Kennard concerning the universal service fund, Sen. Conrad Burns
temporarily delayed approval of the four nominees. Burns concern is the
25-75 split of the burden on the service whereby the states will be
responsible for 75% of the fund, with the fed. gov't. taking up the
remaining 25%. Burns said in a statement, "I strongly believe that it was
not the intent of Congress that the structure of the universal service lead
to higher telephone bills. A 25-75 split to me is unacceptable."

** Technology **

Title: Plan Calls for Computers To Run New York Subways
Source: New York Times (A24)
http://www.nytimes.com/yr/mo/day/news/national/nyc-subways.html
Author: Andy Newman
Issue: Technology
Description: In an effort to improve New York City's subway system, "the
Metropolitan Transportation Authority plans to buy a communications system
that would allow computers rather than people, to drive and dispatch the
trains." With less opportunities available for human error, the authority
hopes that the trains will be able to run faster and more frequently.

Title: Net Day Volunteers Back to Wire Schools for Internet
Source: New York Times/CyberTimes (10/25/97)
http://www.nytimes.com/library/cyber/week/102597netday.html
Author: Amy Harmon
Issue: Education Technology
Description: Oct. 25, 1997 is being observed as "Net Day", a volunteer
effort to wire the nation's schools for Internet access. It's also a chance
to experiment with the effects that Internet access can have on student
performance and the graduation rate. 150 hi-tech companies have donated $27
million to connect 450 schools to the global computer network. The
educational value of the Internet is being called into question at a time
when many of the nation's students can't solve basic math problems.
Supporters say that the benefits will be realized, only if teachers have the
time and financial backing. They also argue that the Internet can foster a
more constructive approach to learning. The issue, according to some
educators, is how an educational system must change to teach the skills
required for the age of information. Larry Cuban, an education professor at
Stanford Univ. who's scorned the 'Net as the classroom filmstrip of the
'90's, said, "All the hoopla around the Internet obscures the deeper and
more important issues of learning, about how you teach kids to acquire the
basic skills to think independently."
*********

Digital TV
TelecomAM: DTV Group Begins Task of Determining Public Interest Obligations

Internet/Online Services
NYT: Senate Panel Votes to Block Access to Gambling Sites
NYT: Webmaster Removes AOL From School Library's Computers

Arts
WSJ: More Mush From the NEA

Universal Service/Health
FCC: Universal Service: Encouraging the Growth of Telehealth in
Rural Areas

Competition
TelecomAM: USTA's Neel Irritated With The Big Three And
Their Business Strategies

Mergers
WP: MCI Reports 3rd-Quarter Loss, Cites One-Time Special Charge

** Digital TV **

Title: DTV Group Begins Task of Determining Public Interest Obligations
Source: Telecom AM http://capitol.cappubs.com/am/ (10/23/97)
Issue: Digital TV
Description: The Advisory Committee on Public Interest Obligations of
Digital Television Broadcasters met for the first time this week. While
protecting the public's interest seems like a task everyone should be for,
broadcasters already are balking at the notion that they may have to step up
their efforts. "Broadcasters welcome the opportunity to cooperate with the
Gore Commission, but we will be vigilant in our resistance to government
mandates that threaten the ability of local stations to determine how best
to serve their communities," said Edward Fritts, president and CEO of the
National Broadcasters Association. "Any objective examination of our
industry will reveal that local stations, when left alone, serve their
communities with unparalleled spirit and generosity."

** Internet/Online Services **

Title: Senate Panel Votes to Block Access to Gambling Sites
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/102497gambling.html
Author: Jeri Clausing
Issue: Internet Regulation
Description: The Senate Judiciary Committee approved a bill yesterday that
would ban all domestic gambling on the Internet. What was not discussed
during the debate was the impact this bill would have on U.S.-based Internet
service providers. "Current wire and telephone gambling statutes already
effectively bar Internet gambling in the U.S., and most of the 50 estimated
sites already in operation are based overseas, outside the reach of federal
authorities to shut them down. But the bill would give U.S. authorities the
power to go to court to force Internet service providers to block U.S.
customer access to gambling sites." This raises the questions of what
liability the service providers would have in keeping those sites blocked in
the long term, how much of a burden that would be and if a court order was
used to shut down a site would the ISP be held in contempt if the gambling
company moved to a new Internet address. "This places an undue if not an
impossible burden on ISPs to monitor their content to shut down sites," said
Kevin A. Mercuri, manager of counsels for the Interactive Services
Association. "At the very best it's a logistical nightmare for an ISP
because the technology is just not there. The fear, which is not that
unreasonable, is that any official could shut down any site they don't like
on the web." The bills sponsor, Senator Jon Kyl (R-AZ) compared the ISPs to
phone companies, saying they would just be asked to "flip a switch." He
added that FBI experts and the state attorneys general told him that
technologically this could be done. The bill is opposed by a long list of
groups ranging from the American Civil Liberties Union to the Internet
service providers.

Title: Webmaster Removes AOL From School Library's Computers
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101997aol.html
Author: Lisa Napoli
Issue: Censorship
Description: Murry Bergtrum High School, located in New York, no longer has
America Online on their library computers. It was removed by their
webmaster, Ted Nellen, an English teacher, who said, "It's not the Internet
I'm after -- it's AOL. AOL is a playground without a fence. It's a field
day for predators. I will put it back on when they clean up their act, but
until they show some humanity, I'll keep it off." Nellen was primarily
referring to the recent wake of scandals in which children who met adults in
AOL chatrooms were later abused. Tricia Primrose, a spokesperson for AOL,
said that AOL tries to keep their service safe but they can't control what
happens to people in real time. Nellen, who describes himself as a free
speech advocate, said his decision to remove the service "was painful."
"It's not the Internet I want to have regulated," he said. "It's the
providers."

** Arts **

Title: More Mush From the NEA
Source: Wall Street Journal
http://wsj.com/ (A22)
Author: Camille Paglia, University of the Arts, Philadelphia
Issue: Arts
Description: Ms. Paglia's editorial attacks "American Canvas," the recent
report from the National Endowment for the Arts. "The real problem facing
the arts in America is not simply the dominance of mass media...but the
degeneration of standards in our Playskool model of primary education, in
which everyone is an artist, without the discipline of technical mastery."
No self-respecting avant-garde artist should be on the government dole,
Paglia writes, and Hollywood liberals should finance private art
foundations. She has suggestions for what the NEA should be funding:
educational radio stations devoted to classical music and jazz; college
scholarships for aspiring artists; "grand tours" of Europe and elsewhere for
disadvantaged students; museums devoted to American Indian culture; and
revitalization of local libraries.

** Universal Service **
Title: Universal Service: Encouraging the Growth of Telehealth in Rural Areas
Source: FCC
http://www.HITN.com/fcc_info.html
Issue: Universal Service/Health
Description: The Healthcare Informatics Telecom Network will present a
Teleconference via satellite on "Universal Service: Encouraging the Growth
of Telehealth" in Rural Areas on November 19, 1997, 12:00 noon to 1:00 PM
eastern time.

** Competition **

Title: USTA's Neel Irritated With The Big Three And Their Business Strategies
Source: Telecom A.M.---Oct. 23, 1997
http://www.tpg( at )cappubs.com
Issue: Local Loop Competition
Description: Roy Neel, president of the United States Telephone Assoc.,
expressed anger at what he's dubbed a double standard: the long distance
companies
are employing local business strategies that aggressively exclude
residential customers while these same companies complain that there's no
competition in the local market. Neel said, "The local companies have lost
almost one million local customers, which represents revenues lost. It
should represent progress towards competition for those looking for real
facts." As evidence to the long distance carriers' cherry-picking of business
customers, Neel pointed out the fine print of recent MCI ads that target
medium- to large-sized businesses, as well as multipurpose buildings in
Atlanta that have fiber bypassing residential customers to offer local
service to the businesses within them. One solution, according to Neel, is
for he FCC to take notice of this. "We want to see the Act implemented as
Congress intended."

** Mergers **

Title: MCI Reports 3rd-Quarter Loss, Cites One-Time Special Charge
Source: Washington Post (G1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/24/0691-102497-idx.html
Author: Mike Mills
Issue: Mergers
Description: MCI Corp. reported a net loss of $182 million for its 3rd
quarter, which it attributed to a one-time charge. These numbers come at a
time when two companies making rival bids said that their proposals were
likely to trigger regulatory problems. Analysts say these results reflect
the cost of MCI's struggle to enter the local phone market and to counter
slow growth in its long-distance business by focusing more on the
highest-paying customers. The results, while in line with Wall Street
estimates, are of heightened interest because of the bidding battle.
*********
We are outta here. Have a great weekend and we'll be back Monday.

FCC--General and Regulation
Telecom AM: Preparing For Checkmate: FCC Nominees Represent
Strategic Moves

Internet Content
NYT: Anti-Defamation League Warns of Web Hate Sites

Internet: General Info
NYT: Costa Rica to Try Online Elections

Legal Issues
WSJ: Is Antitrust Relevant In This Digital Age?
WSJ: Microsoft Is Subject Of Antitrust Probe By European Union
WSJ: Why Software and Antitrust Law Make an Uneasy Mix
NYT: Gates Is Defensive on U.S. Antitrust Action
WP: At Justice, A Sense of Web Urgency
WP: At Microsoft, Reno Barely Stirs A Ripple

Local Loop Competition
Telecom AM: Cable Modems Will Win Battle For Broadband Residential
Access

Merger
Telecom AM: GTE Claims It's A Better Fit For MCI Than Worldcom

**FCC--General**

Title: Preparing For Checkmate: FCC Nominees Represent Strategic Moves
Source: Telecom A.M.---Oct. 22, 1997 http://www.tpgweb( at )cappubs.com/
Author:
Issue: FCC
Description: The four new commissioners of the FCC each have their own
unique backgrounds and experiences, but none of them are well-versed in all
issues facing the FCC. There is uncertainty, except for two things about
their tenure: it won't be uneventful and it will involve a lot of time in
court. The new chairman, William Kennard, is, in fact, the most qualified.
He spent the past 3 years as the commission's general counsel, but his
expertise will be tested by new lawsuits that sprout up virtually every day.
Michael Powell, an anti-trust lawyer, will have to deal with several
mergers, including a possible MCI/Worldcom or MCI/GTE mega-merger. Gloria
Tristani's perspective will be needed to soothe the tattered relationship
between the FCC and the states. Finally, there's the economist Harold
Furchtgott-Roth, who will be able to explain the ramifications of decisions
from an economic standpoint to his fellow commissioners.

**Internet Content**

Title: Anti-Defamation League Warns of Web Hate Sites
Source: New York Times (A24)
http://www.nytimes.com/yr/mo/day/news/national/hate-websites.html
Author: Michael Janofsky
Issue: Internet Content
Description: The Anti-Defamation League presented their latest report
"High-Tech Hate: Extremist Use of the internet" at a news conference
yesterday. They stated that in recent years the number of web sites that
celebrate issues such as white supremacy, anti-Semitism, anti-Government
fervor, the denial of the Holocaust, and dozens of others, has doubled to
more than 250. League officials acknowledged that monitoring these sites
and speaking out against their content is relatively easy. What they are
more concerned with is what to do about the sites themselves. Abraham H.
Foxman, national director of the league, said that ideally they would like
to have a software program developed that is similar to the program that
parents can use to block their children's access to sex and violence on
television. But due to concern that a single-blocking program would not be
that effective, league officials have begun discussions with America Online
to set up a warning system that would alert customers to "hate-sites" that
they might find objectionable. "There needs to be a way for adults to be
alerted, whether it's ringing bells or something else, to let people know
they are entering a hate zone," Mr. Foxman said. "How do you do that? It
has to be developed." William W. Burrington, America Online's director of
law and public policy agreed, adding, "There's no silver bullet, the best
thing we can do is educate our subscribers."

**Internet: General Info**

Title: Costa Rica to Try Online Elections
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/102297costarica.html
Author: Jeri Clausing
Issue: Internet
Description: "The government of Costa Rica is experimenting with holding
elections on the Internet to increase electoral participation and efficiency
while reducing the cost of national elections. On February 1, Villanova
University Law School students will be on hand in Costa Rica to help the
government launch what is believed to be the first test of a national
election online. If all goes well, plans call for getting rid of paper
ballots and holding the 2002 elections entirely on the Internet."

**Legal Issues**

Title: Is Antitrust Relevant In This Digital Age?
Source: Wall Street Journal (A1)
http://www.wsj.com/
Author: John R. Wilke & Bryan Gruley
Issue: Legal Issues
Description: The Microsoft case, where the Justice Dept. alleges that
they have violated the 1994 decree, could be the first big test of antitrust
law in an economy where dominance of software and cyberspace could be as
important as the lock a few monopolists held on the railroads in the last
century. On-line commerce, experts say, demands new ways of thinking about
where markets begin and end, and what is fair competition. "If the
government prevails," industry analyst Scott Winkler said, "the case could
set new rules of competition in the information age and hinder Microsoft's
strategy of swallowing more and more of the software industry into its
ubiquitous Windows PC operating system." But, if feds can't make the charges
stick, it gives Microsoft "a free hand to move even more aggressively."

Title: Why Software and Antitrust Law Make an Uneasy Mix
Source: Wall Street Journal (B1)
http://wsj.com/
Author: David bank
Issue: Legal Issues
Description: The Justice Dept.'s landmark legal strike at Microsoft's
strategy of continuously adding new features to its Windows operating system
promises to be a harder fight than other classic antitrust efforts to bust
up "bundled" products. The Dept. basically opposes the allegedly illegal
tying of two separate products: the browser and the operating system, by a
monopoly--Microsoft. "This is called capitalism, " said Microsoft Chairman
Bill Gates yesterday. "We create a product called Windows. Who decides
what's in Windows? It's the customers who buy Windows." One paradox of
applying antitrust law to software is that many computer users desperately
need a single standard for operating systems. "Microsoft is operating in a
different economy than traditional antitrust law," says Mtichell Kurtzman,
chief exec officer of Sybase Inc. "They are able to lower prices and still
increase profit margins."

Title: Microsoft Is Subject Of Antitrust Probe By European Union
Source: Wall Street Journal (B8)
http://www.wsj.com/
Author:
Issue: Legal Issues
Description: The European Union antitrust authorities are investigating
Microsoft contracts with Internet service providers due to competition
concerns. This inquiry is one of many currently under way at the EC. The
commission is looking at whether Microsoft's terms for licensing its
operating systems to Internet service providers run counter to a 1994
antitrust settlement. "We believe we are operating in full compliance with
the consent decree and competition laws," said John Frank, director for law
and corporate affairs at Microsoft Europe in Paris.

Title: Gates Is Defensive on U.S. Antitrust Action
Source: New York Times (D2)
http://www.nytimes.com/library/cyber/week/102297microsoft.html
Author: John Markoff
Issue: Legal Issues
Description: William H. Gates, chairman of the Microsoft corporation, was on
the defensive yesterday as he spoke before a computer industry audience in
Arizona. He insisted that the legal issues between Microsoft and the
Justice Department were narrow, adding that the issue at hand hinged on a
single sentence in the 1995 decree. Bill Gates said that under the terms of
the 1995 consent decree, he believed his company had the right to improve
and add innovations to the basic features of their Windows operating
program. When asked about the fine of $1 million a day, Mr. Gates said
that the amount had been overdramatized and he did not think the case would
ever reach that stage. "What the judge says to do we'll do," he said.
"That's the way things work in this country."

Title: At Justice, A Sense of Web Urgency
Source: Washington Post (C9)
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm
Author: Rajiv Chandrasekaran
Issue: Legal Issues
Description: It appears that the Justice Department's move to challenge
Microsoft this week may be motivated by a fear that time is running out to
mute Microsoft's expansion into cyberspace. Early next year, Microsoft is
planning to release a Windows 98 software package that will include
technology to browse the Internet. Critics fear that this new package will
quickly dominate the software market because Windows is already used on more
than 85 percent of the world's personal computers. "This is when the
Internet is being defined, the digital marketplace is taking shape," said
Jeffrey A. Eisenach, a former economist at the Federal Trade Commission who
now heads the Progress and Freedom Foundation, a conservative think-tank in
Washington. "If Justice wants to stop Microsoft, this is the time to act."

Title: At Microsoft, Reno Barely Stirs A Ripple
Source: Washington Post (C9)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/22/033l-102297-idx.html
Author: Elizabeth Corcoran
Issue: Legal Issues
Description: When the news was released on Monday that the Justice
Department was taking action against Microsoft, most of the software giant's
employees reacted with indifference. "No one in my group had heard
anything," said one project manager, who asked not to be named. John
Neilson, who manages Microsoft's interactive services media division said,"I
was here [in Redmond, WA, where Microsoft is based] doing product reviews...
We spent a couple of minutes at the beginning of each meeting talking about
it and then went on." When asked about the government investigations,
Neilson added, "It feels a little like unfair persecution. We know what
we're doing is right and fair. We're creating better products, increasing
competition and lowering prices. We're doing everything that's right in the
market, I don't get it."

**Local Loop Competition**

Title: Cable Modems Will Win Battle For Broadband Residential Access, Says
New Report
Source: Telecom A.M.---Oct. 22, 1997
http://www.tpgweb( at )cappubs.com
Author:
Issue: Local Loop Competition
Description: The battle for high-speed broadband data services to both
home and business is being played out as a conflict between the phone
companies and the cable operators. According to a study entitled "Broadband
in the Local Loop: Cable Modem Madness vs. xDSL Dementia," cable modem will
win the lion's share of the N. American residential access market. The
demand for increased bandwidth is insatiable, but the cost is a major
concern for residential users. The study forecasts that the worldwide
residential broadband access installed base will approach 20 million users
by 2002.

**Merger**

Title: GTE Claims It's A Better Fit For MCI Than Worldcom
Source: Telecom AM---Oct. 22, 1997 http://tpgweb( at )cappubs.com
Author:
Issue: Merger
Description: GTE Executive Vice President and Gen. Counsel William Barr
touted its proposed takeover as a pro-competitive measure. He also said that
even though the merger would exploit vertical markets, it still would have
the synergies of a horizontal combination. Barr cited 5 areas where a
GTE/MCI deal would spark competition: in the local markets, where the combo
would be a threat to the Bell companies' hold, the long-distance market,
where they would compete with AT&T and the Bells, the Telecommunications Act
of 1996's objective of "breaking down barriers" so they can provide bundled
or unbundled service, they would also have the finances to build additional
infrastructure, thus creating jobs, and GTE and MCI would have the potential
to serve all customers.

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