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Reed Hundt's Legacy

Regulatory Hurdles in an AT&T Deal With SBC

With all sound and fury over push technology, it must signify something

Trickle of TV Liquor Ads May Increase

Hanging Up on Competition?

Cellular Phones Help Schools Keep Information Flowing

Bit by Bit, Congress Is Opening Up to the Information Age

Clinton's Talented and Tenacious Regulators

Hordes of Pols Elect to Change Channels

Hundt Closes; Hunt Opens

Hundt enlarges PSA complaint
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Title: Reed Hundt's Legacy
Source: New York Times (A26)
Author: NYTimes Editorial Staff
Issue: FCC
Description: Federal Communications Commission Chairman Reed Hundt tried to
lower cable TV rates, helped write regulations to open up local telephone
markets; fought broadcasters to win a computer compatible digital TV
standard & children's educational TV programming; and raised $20 billion in
spectrum auctions. He also pushed through rules that will guarantee
affordable telecommunications services for low-income people and will wire
schools and libraries to the Internet. Whoever succeeds him should be
prepared to fight back industry attempts to roll back these rules: "Mr.
Hundt's legacy deserves protection."

Title: Regulatory Hurdles in an AT&T Deal With SBC
Source: New York Times (D1)
Author: Mark Landler
Issue: Merger
Description: If last weeks leaks about a possible AT&T and SBC merger were
"an attempt to float a trial balloon, it is fair to say the balloon got shot
down." Lawyers, lawmakers, lobbyists, and antitrust scholars seem to agree
that the merger would not pass regulatory muster because of the threat to
Competition. AT&T and SBC lawyers argue that the merger would *increase*
competition because SBC would bend over backwards to open up its local
markets while seeking regulatory approval.

Title: With all sound and fury over push technology, it must signify something
Source: New York Times (D4)
Author: Seth Schiesel
Issue: Digital Commerce/Info Tech
Description: In Technology column, Schiesel says push technology must be
something big because there's such a big fuss over it. Pointcast is the push
technology leader, but Netscape and Microsoft are about to begin their own
offerings.

Title: Trickle of TV Liquor Ads May Increase
Source: Wall Street Journal (B5)
Author: Sally Goll Beatty
Issue: Advertising
Description: Now that Reed Hundt, vocal opponent of TV liquor ads, is
leaving the FCC, the liquor industry may increase its efforts to advertise
on TV. Most network stations refused to run such ads, but the ads
received a warmer welcome on cable. The liquor industry thinks that the
continued unraveling of network audiences and the rise of cable may help
their efforts.

Title: Hanging Up on Competition?
Source: Washington Post (H1)(6/1/97)
Author: Mike Mills
Issue: Competition/Mergers
Description: The "urge to merge" is stronger than the urge to compete.
Instead of trying to battle it out with lower prices and better services
[isn't that how the ads went?], large telephone companies and trying to
become larger companies: NYNEX is merging with Bell Atlantic, PacTel merged
with SBC, and now SBC and AT&T are in a marriage dance. Is this what
Congress meant with the Telecom Act of 1996? House Telecom Subcommittee
Chairman Billy Tauzin (R-LA) thinks so: what's the difference between
mergers forming 3-4 companies that compete and 12 companies competing for
awhile until 3-4 winners emerge? But if even AT&T can't compete with the
Baby Bells unless it buys them, then maybe the local market is a natural
monopoly. Article includes summary box on major telecom mergers passage
of1996 Act.

Title: Cellular Phones Help Schools Keep Information Flowing
Source: Washington Post (B1)(6/1/97)
Author: Robert O'Harrow Jr.
Issue: Education Technology
Description: Cellular telephones are the most sought after technology in
schools. Teachers want to be able to contact parents, students and others
more easily. Some wireless telephone companies are donating phones and
service to schools. Teachers and administrators who use the service predict
that many more schools will use the technology soon.

Title: Bit by Bit, Congress Is Opening Up to the Information Age
Source: Washington Post (A17)
Author: Barbara J. Saffir
Issue: Access to Government Information
Description: Members of Congress are getting more active online. Two
hundred twenty five representatives have web sites. There are also about 25
pending bills regarding the Internet that Congress needs to consider.
C-Span started a web site in January so that it could cover government
events not carried on its two TV channels. But citizens want more
information. The Heritage Foundation and a Ralph Nader group,
the Congressional Accountability Project, are demanding
that Congress put more meaty information, like committee reports, online.

Title: Clinton's Talented and Tenacious Regulators
Source: Washington Post (A19)
Author: Robert Kuttner
Issue: Federal Government
Description: In his op-ed, Kutner raises concerns about the exit of a group
of "talented and spirited regulators" who have "insisted on rules that serve
the public interest" -- Reed Hundt from the FCC, David Kessler from the FDA,
and Ann Bingaman, of the Justice Department's anti-trust division. Each
of these people worked in fields with powerful industries. "There is so
much money to be made in the tobacco business, the pharmaceutical business,
the telecom business, that it is easy to forget that abuses often occur."
"Government is now left with one oar -- regulation -- to promoted public
purposes. It would not be smart to throw that oar overboard."

Title: Hordes of Pols Elect to Change Channels
Source: Washington Post (D1)
Author: Howard Kurtz
Issue: Journalism
Description: Susan Molinari's move from politics to Saturday Morning News
Anchor is an indication of the breakdown of the dividing line between
politics and journalism. "Broadcast personalities once used their
prominence as a springboard into politics. How retro. Now it seems
politics has become just another route to becoming sufficiently famous to
land a high paying TV job." Pat Buchanan is on CNN's Crossfire. Oliver
North lost an election and got a radio show. Dee Dee Meyers went to CNBC.
George Stephanopoulous went to ABC.

Title: Hundt Closes; Hunt Opens
Source: Broadcasting&Cable (p.4)
Author: Chris McConnell
Issue: FCC/Death of Public Interest
Description: The race for the chairmanship is on. Early favorites (all with
odds of about 2-1) are Commissioner Susan Ness, FCC Counsel William Kennard,
White House Policy Advisor Kathleen Wallman, and former Hill staffer Ralph
Everett. Dark horses include Benton Foundation wonk Susan Goslee who's
concerns include the much under represented canine population. [Related
stories include broadcasters' and cable's reactions to Hundt resignation.
"For Once, Broadcasters Cheer Hundt's Move" gives a pretty clear indication
of their response]

Title: Hundt enlarges PSA complaint
Source: Broadcasting&Cable (p.6)
Author: Chris McConnell
Issue: Public Service Media
Description: FCC Chairman Red Hundt is upset that the number of
network-produced public service announcements are dwindling and that local
stations aren't even airing all the PSAs that they receive. Hundt is
considering having the FCC write rules on airing PSAs. A broadcast industry
source said, however, that "Any hope he had of getting pet projects done is
gone now."
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forgrabs-l@cdinet.com

F.T.C. Charges 'Joe Camel' Ad Illegally Takes Aim at Minors

When Tabloids Cross the Line

Radio spectrum sales seem a success. Why the attack?

Book Superstores Bring Hollywood-Like Risks to Publishing Business

Joe Camel Ads Illegally Target Kids, FTC Says

FTC Seeks to Ban "Joe Camel" in Ads

Privacy and the Cookie Pushers

Ad for News Media Museum Dismays Death Penalty Opponents

Curb on Tobacco Ads Proposed, but Would It Snuff Out Sales?

Software Firm Closed After Soaring Briefly

Telecommunications Deals Set Off Antitrust Alarms

*********************************************

Title: F.T.C. Charges 'Joe Camel' Ad Illegally Takes Aim at Minors
Source: New York Times (A1)
Author: William Grimes
Issue: Advertising
Description: The Federal Trade Commission stated that R.J. Reynolds promotes
an addictive and deadly product to youths who can't legally purchase it.
The FTC says it can back up this charge with extensive, internal company
documents and aims to prove that Reynolds developed its cartoon based
advertising campaign in the 80s to increase its shrinking number of teen
smokers. It's estimated that more than 3,000 kids under 18 start smoking
every day.

Title: When Tabloids Cross the Line
Source: New York Times (A29)
Author: Steve Coz
Issue: Journalism
Description: This op-ed by Steve Coz, the senior vice president of the
National Enquirer, admits that scrambling for celebrity affairs and gossip
is what it's all about from a tabloid perspective, but that the Globe has
overstepped what's acceptable with its recent story on a supposed
extra-marital affair by Frank Gifford. The Globe hired a flight
attendant whom Gifford had spoken with, but only spoken with, to lure
Gifford into a hotel room and then secretly videotaped the rendez vouz.
Coz states that this is not covering a story, but creating a story that
wouldn't have existed otherwise. "What's
next? Is someone going to buy a case of vodka and deliver it to a celebrity
who is a recovering alcoholic and then report to readers that the star went
on a binge?"

Title: Radio spectrum sales seem a success. Why the attack?
Source: New York Times (D2)
Author: Peter Passell
Issue: Spectrum
Description: If the FCC's spectrum auctions are bringing in money, why is
this practice under attack? It is partly because lawmakers are thinking more
about the finances than about getting under used spectrum into use, and partly
because Wall Street and spectrum renters like cell phone companies want to
keep the spectrum scarce. Broadcasters also want to discredit auctions so
that they won't ever be asked to pay for their spectrum.

Title: Book Superstores Bring Hollywood-Like Risks to Publishing Business
Source: Wall Street Journal (A1)
Author: G. Bruce Knecht
Issue: Publishing
Description: The growing number of book superstores is hurting book sales.
Retail space is way ahead of sales -- adult hardcover sales dropped 4.4%
last year, and the number of paperbacks sold declined. Superstores have
lots of books, but prime shelf space is saved for only a few titles. If a
book doesn't become a blockbuster, it gets moved out. Publishers pay
celebrity authors big sums for book contracts, and then if the book doesn't
sell, publishers buy the books back from the stores and end up destroying a
lot of books. Last year bookstores sent back 35% of adult hardcovers.
Book superstores hurt independent book sellers, and independent book sellers
actually sell 80% of the books they order from publishers while superstores
sell less than 70% of what they order. Publishers are paying more and more
for publicity campaigns for fewer titles.

Title: Joe Camel Ads Illegally Target Kids, FTC Says
Source: Wall Street Journal (B1)
Author: Bruce Ingersoll
Issue: Advertising
Description: The FTC has filed an unfair advertising complaint against R.J.
Reynolds for its Joe Camel Advertising campaign for cigarettes. "The
campaign, the complaint says, has been so successful that Camel's market
share among kids exceeds its share among adults." Reynolds response
stated, in part, that "Joe Camel has become a scapegoat for issues our
society has been unable to resolve."

Title: FTC Seeks to Ban "Joe Camel" in Ads
Source: Washington Post (http://www.washingtonpost.com/) (A1)
Author: John Schwartz
Issue: Advertising
Description: The Federal Trade Commission has charged tobacco giant R.J.
Reynolds with trying to entice children to smoke with its "Joe Camel"
advertising campaign. The case will now go to administrative trial. The FTC
regulates advertising and has the power to restrict ads that are "unfair,"
a legal term which means "likely to cause injury that is not reasonably
unavoidable, and which is not offset by a compensating benefit." The FTC's
director said, "Joe Camel must grow up or go away."

Title: Privacy and the Cookie Pushers
Source: Washington Post (http://www.washingtonpost.com/) (A22)
Author: Washington Post Editorial
Issue: Privacy/Internet
Description: A group of Internet companies, led by Netscape, say they will
develop privacy standards on the Internet so surfers know when a Web site
is collecting information about them. In the future, they say, Internet
users will get to choose to accept "cookies," small programs that are
deposited on your hard drive so that a site operator can collect
information about your Web habits. "Any help, corporate or other, in
refusing unwanted cookies and junk e-mail is probably worth having. But it
shouldn't be mistaken for a solution to the large and urgent privacy
problems that press on the Net."

Title: Ad for News Media Museum Dismays Death Penalty Opponents
Source: Washington Post (http://www.washingtonpost.com/) (D1)
Author: Alice Reid
Issue: Advertising
Description: DC-area ads for the "Newseum," a journalism museum run by the
Freedom Forum, have upset death-penalty opponents. "Think A Museum About
News Is A Bore?" the ads ask with a picture of an electric chair. "You're
In For A Big Shock." Newseum operators defended the ad that portrays an
exhibit on sensationalism in journalism.

Title: Curb on Tobacco Ads Proposed, but Would It Snuff Out Sales?
Source: Washington Post (http://www.washingtonpost.com/) (E1)
Author: John Mintz
Issue: Advertising
Description: Proposed bans on tobacco ad campaigns -- as is done in Great
Britain -- have little effect as the companies just come up with new ad
campaigns that get around existing rules. The tobacco industry has $45
billion in sales last year; $7.7 billion in profits.

Title: Software Firm Closed After Soaring Briefly
Source: Washington Post (http://www.washingtonpost.com/) (E1)
Author: Rajiv Chandrasekaran
Issue: Internet Economy
Description: Freeloader Inc, once a hot Internet property, was shut down by
the company that bought it last year. Freeloader software would search out
websites and download them to an users computer when the user wasn't at
the keyboard. This "off-line" downloading ability is not being incorporated
into new versions of Web browsers.

Title: Telecommunications Deals Set Off Antitrust Alarms
Source: Washington Post (http://www.washingtonpost.com/) (E1)
Author: Steven Pearlstein & Mike Mills
Issue: Mergers
Description: Although the government has not challenged many mega-mergers
over the past few years -- AT&T and McCaw Cellular, Time Warner and Turner
Broadcasting, Disney and Capital Cities/ABC, Bell Atlantic and NYNEX to
name a few -- two recently proposed deals may not sail so smoothly. "We
know that some mergers are good for competition and some are bad," said FCC
Chairman Reed Hundt. "But I don't think government has yet drawn a clear
line between them." The rumored marriage of AT&T and SBC and the tentative
deal between Primestar and Rupert Murdoch's News Corp may help draw that
line though.

At the FCC (www.fcc.gov):

FCC RELEASES NEW TELEPHONE SUBSCRIBERSHIP REPORT. CCB Contact: Common
Carrier Bureau: Alexander Belinfante at (202) 418-0944.

WFUV-FM, BRONX, NY, FORDHAM UNIVERSITY. Initiated formal consultation with
New York Office of Parks, Recreation and Historic Preservation, Fordham
University and other commenting parties concerning effects of placing
WFUV-FM tower New York Botanical Gardens. Action by Chief, Audio Services
Division, Mass Media Bureau. Adopted: May 23, 1997. by Letter. (DA No.
97-1110). MMB

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forgrabs-l@cdinet.com

Local Monopolies Still Rule the Local Phone Markets

Study Sees Holes in Internet Security Plan

Broadcast TV's Viewership Fell In Latest Season

Cable Rates Not a Hit in Montgomery

In the Chips Now, But Maybe Not Later

ISPs Form Coalition to Make Internet More "Reliable"

David vs. Goliaths
*********************************************
Title: Local Monopolies Still Rule the Local Phone Markets
Source: New York Times (D1)
Author: Mark Landler
Issue: Competition (or lack thereof)
Description: A study to be released today by the Yankee Group, a
telecommunications research firm in Boston, finds that less than .5% of
American receive local telephone service from any company other than the
local Bell. The most likely competitors in this market -- long distance
companies -- seem hesitant to enter this market and seem more concerned with
convincing Federal regulators not to let Bells provide long distance. AT&T
seems like the only long distance company planning to build their own
facilities to compete with local Bells. Resale of services, a traditional
avenue into a telecommunications market, seems too unprofitable to spark
competition. The local phone market is $100 billion/year.

Title: Study Sees Holes in Internet Security Plan
Source: New York Times
Author: Steve Lohr
Issue: Internet Security
Description: A study coordinated by the Center for Democracy and Technology
finds that Government plans for unlocking
data-scrambling software to pursue criminals on the Internet could actually
increase security risks and raise the costs of online commerce.

Title: Broadcast TV's Viewership Fell In Latest Season
Source: Wall Street Journal (B5)
Author: Kyle Pope
Issue: TV
Description: Last night the broadcast TV season ended, and broadcast TV
(NBC, ABC, CBS, Fox) viewership has dropped by 1.7 million homes since last
year. This drop is the biggest the broadcast industry has seen in awhile.
Cable viewership is, in general, on the rise.

Title: Cable Rates Not a Hit in Montgomery
Source: Washington Post (A1)
Author: Manuel Perez-Rivas
Issue: Cable Rates
Description: Montgomery County, MD residents are facing a possible 9.5
increase in cable rates that could raise cable bills about $3 a month.
"According to the Labor Department, cable rates outpaced the inflation rate
last year by 2 to 1." County officials are going to appeal with the FCC
about the rate increase.

Title: In the Chips Now, But Maybe Not Later
Source: Washington Post (E1)
Author: Peter Behr
Issue: Economy
Description: At a recent summit, Virginia business and education leaders
argued that unless the state increases its investment in technology
training, the current technology boom may be short lived because of a
shortage of skilled employees. The president of Landmark Communications
said, "We cannot expect technology businesses to locate in Virginia if we
cannot supply qualified workers." According to recent surveys, tech
companies in Northern Virginia have about a dozen job vacancies, and "only
four of every 10 job applicants have the skills employers need."

Title: ISPs Form Coalition to Make Internet More "Reliable"
Source: Telecommunications Reports Daily
Issue: Internet
Description: Nine major US Internet operators formed a coalition "dedicated
to making the commercial Internet more robust and reliable." For more
information se . Founding members are ANS
Communications, AT&T, BBN, Earthlink Network, GTE, MCI, NETCOM, PSINet, and
UUNET.

Title: David vs. Goliaths
Source: The Villi age Voice
Author: Vince Bielski
Issue: Internet
Description: Whole Earth Networks (Wenet) CEO David Holub was fired when
insisted on fighting the Big Five ISPs -- MCI, Sprint, BBN (part of GTE),
ANS (part of America Online), and UUNET -- over new peering policies. The
Big Five control 80% of the market in online traffic. Instead of freely
swapping Internet traffic, the companies are now starting to charge smaller
Internet Service Providers (ISPs). Holub -- and now his staff -- is
protesting not over the money, but because the company's have not made the
criteria for charging public. Holub claims that these companies could apply
peering charges unfairly by refusing to peer with competitors that it wanted
to eliminate -- even if they meet criteria.

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forgrabs-l@cdinet.com

Merger of NYNEX and Bell Atlantic Clears U.S. Hurdle

Political Spotlight Shines on Volunteer Conference

Bell Atlantic-Nynex Deal Moves Forward

Foundation Plans to Leave Internet-Name Oversight

Justice Approves Bell Atlantic, Nynex Merger

Kids and Computers

Chorus of Boos Greets TV Rating System

Witnesses Assail NTIA Infrastructure Grants Program
*********************************************
Title: Merger of NYNEX and Bell Atlantic Clears U.S. Hurdle
Source: New York Times (A1)
Author: Mark Landler
Issue: Mergers
Description: The US Justice Department announced on 4/24 that it will not
attempt to block the merger of local telephone companies Nynex and Bell
Atlantic. The merger, originally announced a year ago, will create a $22
billion corporation serving 39 million customers in 13 states and the
District of Columbia. The merger was opposed by many consumer advocates
because the size of the new company may deter local competition in the
service area (Maine to Virginia). The deal still needs approval from the
Federal Communications Commission.

Title: Political Spotlight Shines on Volunteer Conference
Source: New York Times (A25)
Author: R.W. Apple Jr.
Issue: Civic Participation
Description: The Presidents' Summit for America's Future opens next week in
an attempt to promote the benefits of volunteerism. "Volunteerism is
becoming a core value in America," says a Democratic pollster. "It is a
response to the need for a rebuilt sense of community. People are waking up
to the fact that they communicate around the world on the Internet and yet
don't know their neighbors." The Summit is seen as a way for President
Clinton to restate smaller government themes and for 2000 presidential
hopefuls to vie for the spotlight. The summit has it critics: one
government official says that on the scale of what they can do to solve
problems volunteers are a 1 and the government is a 10. Rush Limbaugh says
the event is all about "fleecing corporations" in "an incremental little
approach to more socialistic attitude."

Title: Bell Atlantic-Nynex Deal Moves Forward
Source: Wall Street Journal (http://www.wsj.com/) (A3)
Author: John R.Wilke and Leslie Cauley
Issue: Media Mergers/Phone Regulation
Description: The Justice Department approved the $23 million merger between
Bell Atlantic and Nynex. This deal is the second largest merger in history
and establishes a communications company with customers from Maine to
Virginia. Critics of the merger believe that the Telecommunications Act,
which was supposed to promote competition, is just leading to the formation
of megacompanies. Other recent large media mergers include: Time Warner
and Turner, Disney and Capital Cities/ABC, US West and Continental
Cablevision, SBS Communications and Pacific Telesis. The Justice
Department's approval of this AT&T deal bodes well for MCI and British
Telecom and their proposed merger.

Title: Foundation Plans to Leave Internet-Name Oversight
Source: Wall Street Journal (http://www.wsj.com/) (B6)
Author: WSJ Staff Reporter
Issue: Internet
Description: The National Science Foundation has decided not to renew
Network Solution's contract to register domain names for the Internet.
Network Solutions, a private company, has been awarding domain names for 4
years and contends that it will continue to do so after the contract
expires.

Title: Justice Approves Bell Atlantic, Nynex Merger
Source: Washington Post (http://www.washingtonpost.com/) (D1)
Author: Mike Mills
Issue: Phone Regulation/Media Mergers
Description: The Bell Atlantic - Nynex merger has been approved by the US
Justice Department and the Superfriend's Hall of Justice. The new company
will run under Bell Atlantic and will maintain 39 million phone lines,
greater than a quarter of the nation's total phone lines. Bell Atlantic
will have 138,900 employees -- second in size only to AT&T as far as phone
companies go. After this merger, there will be five Baby Bells.

Title: Kids and Computers
Source: Washington Post (http://www.washingtonpost.com/) (Weekend p. 33)
Author: WP Reporters
Issue: Children
Description: Special segment of weekend section on kids and computers --
filtering software, good CD-ROMs, appropriate web sites.

Title: Chorus of Boos Greets TV Rating System
Source: Washington Post (http://www.washingtonpost.com/) (G2)
Author: Paul Farhi
Issue: V Chip
Description: In the last month, more than 800 organizations have filed
comments with the FCC protesting the current TV rating system. All twenty
six positive comments came from network affiliated stations. Jack Valenti,
who led the development of the rating system, claims that all the protests
are coming from inside the beltway people.

Title: Witnesses Assail NTIA Infrastructure Grants Program
Source: Telecommunications Reports Daily
Issue: Budget Issues
Description: Testifying at a National Telecommunications and Information
Administration (NTIA) reauthorization hearing, Washington telecom lawyer
Kenneth Robinson identified 14 other programs in President Clinton's 1998
budget that would fund similar projects as NTIA's Telecommunications and
Information Infrastructure Assistance Program (TIIAP). Former FCC Chief of
Staff Peter Pitsch said, "it appears unlikely that TIIAP can pass a
cost-benefit test." NTIA Administrator Larry Irving answered the criticisms
by arguing that "only the best of the best" proposals are funded. Mr.
Irving is seeking Congress' blessing of TIIAP: "I think it deserves
authorization and I don't want to have an unauthorized program." House
Commerce Chairman Thomas Bliley (R-VA) and House Telecommunication
Subcommittee Chairman Billy Tauzin (R-LA) are considering cutting NTIA's
budget.
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