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(Microsoft) Legal Issues
NYT: U.S. Tells Court Microsoft Breaks Antitrust Accord
WP: U.S. Says Microsoft Violates Antitrust Pact
WSJ: U.S. Sues Microsoft over PC Browser
TelecomAM: At The Gates of Hell: European Union
Investigates Microsoft

Computer Technology
WSJ: Intel's Chip Innovations Could Scramble PC Industry

(AT&T) Corporate Telecommunications
NYT: AT&T Introduces Executive Who'll Take Over Company
WP: AT&T Picks Armstrong As New CEO
WSJ: Taking On a Tough Sell

International
NYT: NATO Says It Shut Serb Radio to Silence Propaganda

Internet
WP: From Bell Atlantic, a Primer on Perusing the Internet

Lifestyles
Telecom AM: New AT&T Survey Says Most Telecommuters See
Positive Career, Family Effects

Mergers
NYT: Diller's HSN In $4.1 Billion TV Asset Deal
WP: HSN to Aquire Cable Networks From Universal
WSJ: Diller and Universal Team Up to Build Television Titan

Wiring Regulations
Telecom AM: Inside Wiring Rule Changes Open Doors For MVPDs

** (Microsoft) Legal Issues **

Title: U.S. Tells Court Microsoft Breaks Antitrust Accord
Source: New York Times (A1, D22)
http://www.nytimes.com/index.map?422,146
Author: Stephen Labaton
Issue: Legal Issues
Description: Yesterday, the Federal Government ordered that Microsoft must
stop forcing makers of personal computers to include its Internet browser
when they install its Windows 95 software system. Janet Reno said the
petition was filed because Microsoft had violated an antitrust agreement
established. Reno commented, "Microsoft is unlawfully taking advantage of
its Windows monopoly to protect and extend that monopoly and undermine
consumer choice." The Justice Department will seek a fine of $1 million a
day until Microsoft changes its policy. Microsoft's lawyers said that the
antitrust prosecutors misinterpreted the agreement and that the corporation
plans to contest the petition.

Title: U.S. Says Microsoft Violates Antitrust Pact
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/20/0431-102197-idx.html
Author: Rajiv Chandrasekaran & Elizabeth Corcoran
Issue: Legal Issues
Description: The Justice Dept. asked a federal judge to find Microsoft in
contempt of court for violating a 1995 consent decree that sought to
restrain the company from using its market power to force PC makers to
distribute Microsoft's Internet browsing program (IE 4.0). Attorney General
Janet Reno said that they should pay a fine of $1 million each day it
continues to violate the agreement. This is the gov't.'s third legal move
against Microsoft, with many in the industry feeling that Microsoft unfairly
dominates the $102 billion software industry, and as a result holds back
innovation. Microsoft denies the allegations, citing misinterpretation of
the decree. "Forcing PC manufacturers to take one Microsoft product as a
condition of buying a monopoly product like Windows 95 is not only a
violation of the court order, it is plain wrong," Reno said at a news
conference. "Microsoft is unlawfully taking advantage of it Windows
monopoly...to undermine consumer choice."

Title: U.S. Sues Microsoft over PC Browser
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Bryan Gruley, John R. Wilke, David Bank and Don Clark
Issue: Legal Issues
Description: The Justice Department filed a complaint in federal court
against the Microsoft Corporation's bundling of its 95 Windows software with
its Internet browser. "This lawsuit comes two years after Microsoft settled
government charges that it had illegally exploited its monopoly over
operating systems. The current petition says that Microsoft's practice
violates the 1995 consent decree where they agreed not to impose
anticompetitive licensing terms on PC makers. At the heart of this latest
fight is likely to be a simple but crucial question: Are Microsoft's
operating system and its Internet browser two distinct products, or should
they be considered one integral product?"

Title: At The Gates of Hell: European Union Investigates Microsoft
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Legal Issues
Description: The European competition authorities are investigating possible
abuse by Microsoft of its dominant position in Europe and alleged
anti-competitive agreements that are slowly forcing other companies out of
the market. EC officials plan to organize a closed hearing with Microsoft
before the end of the year.

** Computer Technology **

Title: Intel's Chip Innovations Could Scramble PC Industry
Source: Wall Street Journal
http://wsj.com
Author: Dean Takahashi
Issue: Computer Technology
Description: "Intel, the kingpin of chip makers, is pushing a series of
improvements to PC technology that also happen to make life difficult for
companies that clone Intel's products. As smaller rivals try to resist
those changes, industry executives say the likely outcome is a proliferation
of PC models with confusing differences in power and price."

** (AT&T) Corporate Telecommunications **

Title: AT&T Introduces Executive Who'll Take Over Company
Source: New York Times (D4)
http://www.nytimes.com/yr/mo/day/news/financial/att-armstrong.html
Author: Seth Schiesel
Issue: Corporate Telecommunications
Description: Yep, you guessed it, AT&T announced that C. Michael Armstrong,
now former chairman of Hughes Electonics, will be their new chief executive.
When Armstrong was asked about his appointment, he said, "It's been and
exciting and thrilling day; I've got a lot of adrenaline flowing."

Title: AT&T Picks Armstrong As New CEO
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/20/1061-102197-idx.html
Author: Steven Pearlstein
Issue: Corporate Telecommunications
Description: AT&T Corp. appointed C. Michael Armstrong, 59, chairman and
chief executive, thus ending a years-long search for a successor to Robert
Allen, whose chairmanship was marked with headline-making layoffs, and
disastrous forays into the computer business. AT&T's board of directors
insisted that Allen step down in 10 days so Armstrong could take the reins
and revive the telecom giant. The company also placed John D. Zeglis, 50, at
the No.2 post as company president. Despite Zeglis's former place as Allen's
protege, he and Armstrong vowed to make the new partnership work. Walter
Elisha, chairman of Spring Industries, and AT&T director, said, "We have
found a leader with exceptional technological vision, a good understanding
of the forces transforming the communications service industry and a strong
record of accomplishment."

Title: Taking On a Tough Sell
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/20/1021-102197-idx.html
Author: Mark Leibovich
Issue: Corporate Telecommunications
Description: C. Michael Armstrong is AT&T's new chairman and chief
executive, and one that friends describe as a "businessman athlete".
Analysts say that his energy will be vital to basically reinventing AT&T
with a creative and streamlined approach to reverse a shrinking lead in
long-distance calling while at the same time asserting itself in the local
phone market. Armstrong's signature is his ethic of obsessive salesmanship,
and will need it to reorient AT&T to meet the changing consumer demands in a
free-wheeling and unregulated telecommunications realm.

** International **

Title: NATO Says It Shut Serb Radio to Silence Propaganda
Source: New York Times (A3)
http://www.nytimes.com/yr/mo/day/news/world/bosnia-serb-tv.html
Author: Mike O'Connor
Issue: International
Description: On Saturday, NATO soldiers located and took over a main
transmitter used by hard-line Bosnian Serb nationalists. NATO and other
international peacekeepers said they were satisfied with this step which is
helping to bring about responsible new coverage in Bosnia. "This action
demonstrates a new cohesion and assertiveness by Western Governments in
confronting hard-line Bosnian Serb officials."

** Internet **

Title: From Bell Atlantic, a Primer on Perusing the Internet
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/20/1091-102197-idx.html
Author: Mark Leibovich & Mike Mills
Issue: Internet: General Info
Description: Bell Atlantic Corp. is offering a "Guide to the Internet", a
13-page primer on Internet lingo, popular WWWeb sites and search engines
tailored to online novices. The directory will be available to N. Virginia
residents in Jan. and to D.C. residents in April.

** Lifestyles **

Title: New AT&T Survey Says Most Telecommuters See Positive Career, Family
Effects
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Lifestyles
Description: In a survey conducted by AT&T, they found that "60 percent of
telecommuters are between the ages of 33 and 51, are married, feel good
about doing "telework," and believe teleworking has positive effects on
their careers and family life." (Time to boot up those computers, throw on
your robe and settle down to work with a nice cup-a-joe. Who needs casual day?)

** Mergers **

Title: Diller's HSN In $4.1 Billion TV Asset Deal
Source: New York Times (D1, D9)
http://www.nytimes.com/yr/mo/day/news/financial/diller-universal.html
Author: Geraldine Fabrikant
Issue: Mergers
Description: Yesterday, HSN Inc. agreed to acquire the Seagram Corporation
USA and Sci-Fi cable channels, including almost all of Seagram's Universal
television production company, for $1.2 billion in cash and $2.9 billion in
stock. This deal will give Barry Diller, HSN's chairman, the opportunity to
establish a broadcast network that could possibly compete with ABC, NBC, CBS
and FOX.

Title: HSN to Aquire Cable Networks From Universal
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/20/1161-102197-idx.html
Author: Paul Farhi
Issue: Mergers
Description: Barry Diller, founder of Fox TV and owner of HSN Inc., the
parent company of the Home Shopping network, has agreed to buy Universal
Studios cable networks and other TV operations from parent Seagram Co. for
$4.1 billion in cash and stock. In interviews, Diller and Seagram Chairman
Edgar Bronfram sketched out plans the create the first hybrid
cable-broadcast network, which would be able to beam Universal-made programs
to almost every TV set in America. "The big question is, what now" in terms
of actual programming, Diller said. "Anything we do will have to have flair
and verve and be of the moment."

Title: Diller and Universal Team Up to Build Television Titan
Source: Wall Street Journal (B1, B6)
http://wsj.com
Author: Eben Shapiro and Bruce Orwall
Issue: Mergers
Description: Barry Diller, who formerly ran Paramount Pictures and launched
the FOX network, has just struck a deal with the Seagram Co., parent of
Universal Studios Inc. The agreement will merge a large chunk of Seagram
Co.s Universal Television operations, including the USA network, with
Diller's company, the Home Shopping Network parent HSN Inc. Universal will
get a 45 percent stake in the new company and $1.2 billion in cash from HSN.
This merger will create what Mr. Diller hopes will be a major TV network.
Mr. Diller will run the new venture.

** Wiring Regulations **

Title: Inside Wiring Rule Changes Open Doors For MVPDs
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Wiring Regulations
Description: The FCC opened its doors last week for multichannel video
programming distributors (MVPD). "The FCC amended its cable inside wiring
rules to allow new entrants greater access to multi-dwelling buildings.
Competition has been hindered by disputes over control and use of the wires
necessary to reach each unit in a building." The FCC says that its decision
is meant to "promote choice, innovation and price competition in the video
programming industry."
*********

Arts and Humanities
NYT: Bleak Study On the Arts Stirs Outcry

Copyrights
NYT: Europeans Push For Copyrights In Cyberspace
NYT: Electronic 'Branding' Receives Accolades at Frankfort Book Fair

Corporate Retrenchment
WSJ: How AT&T Directors decided It was Time For Change At the Top

Digital Television
NYT: PBS Makes Digital Plans

Encryption
WSJ: Frech proposal for Encryption Worries EC

Internet
NYT: Steady Diet Of Spam on Online Services

Internet Content
WP: The Discontent Over the Content

Internet: General Info
WSJ: Microsoft to Add Search Capabilities To Free Version of Its
On-Line Service
WP: Who Knows Why but They Don't Say When

Lifestyles
NYT: When Venting Computer Rage The First Step Is The Longest

Mergers
WSJ: Rivals Assail GTE on Impact Of Bid for MCI
WSJ: Bargain or Burden? The Question of MCI's Worth

**Arts and Humanities**

Title: Bleak Study On the Arts Stirs Outcry
Source: New York Times (B1)
http://www.nytimes.com/yr/mo/day/news/arts/nea-funding.html
Author: Judith Miller
Issue: Arts
Description: American Canvas, a 193-page Federal report on the state of the
arts in the U.S., has created quite a reaction across the nation. Most of
the outcries have been in response to coverage by newspapers and television
stations that decided to focus on the report's conclusion that "artists and
art groups are partially responsible for the growing alienation between the
public and the arts, a gap that made recent cuts in government arts spending
possible." While some were outraged by these conclusions, like Randall
Bourscheidt, president of the New York city-based Alliance for the Arts, an
arts advocacy group, and chief of Mayor Rudolph Giuliani's cultural advisory
committee, who commented, "Talk about blaming the victim!" Others were less
reactionary, like Armando Duran, a lawyer, social activist and participant
in one of the forums from which the report was based, who said, "I stand by
that criticism. And I think the N.E.A.'s constant struggle reflects that
insularity and the fact that the vast majority of people don't understand
what the arts are supposed to do."

**Copyright**

Title: Europeans Push for Copyrights in Cyberspace
Source: New York Times (D6)
http://www.nytimes.com/
Author: Reuters
Issue: Copyright
Description: The European Commission is in the process of drafting a text on
"copyright protection for material carried on the Internet and other
electronic networks." This move, pushed forward in an effort to deter
pirates from using technology to make and distribute illegal copies of
recordings, films or texts, is causing quite a debate between the publishing
and entertainment industry, and equipment manufacturers, telecommunications
companies and on-line service providers. Members of the entertainment
industry are concerned that they could be severely damaged if they are not
allowed to control all commercial uses of their products. "There's a very
big danger that the entire financial stability or underpinnings of our
companies is not only threatened, but could collapse if we in fact don't
control the means to exploit our product," said Rick Dobbis, an executive at
the Phillips Electronics N.V. unit at Polygram International. On the other
hand, European equipment, telecommunications and on-line companies, which
have joined together to form the Ad Hoc Alliance for a Digital Future, are
concerned that the EU will go overboard in their efforts to protect
copyrights, making virtually all copyrighting illegal, even that by
consumers for their personal use. "We're afraid that, you could maybe call
it greed, the content owners could ruin their and our markets," said Gerry
Wirtz, an executive at Phillips who head the associations copyright committee.

Title: Electronic 'Branding' Receives Accolades at Frankfort Book Fair
Source: New York Times (D11)
http://www.nytimes.com/library/cyber/week/102097book.html
Author: Doreen Carvajal
Issue: Copyright
Description: At Frankfort's 49th annual book fair, hundreds of publishers
crowded around to view an electronic marking, or branding, system that could
be used to track goods in digital commerce. Dietrich Gotze, the chief
executive of the German publishing house, Axel Springer Verlag A.G., told
over 400 publishing executives just before a big-screen demonstration of
electronic marking, "It's one of the most important events in publishing for
this century, and I don't think I'm saying too much."

**Corporate Retrenchment**

Title: How AT&T Directors Decided It Was Time For Change at the Top
Source: Wall Street Journal (A1)
http://www.wsj.com/
Author: John J. Keller
Issue: Corporate Retrenchment
Description: AT&T's board of directors may announce C. Michael Armstrong
as the new CEO of AT&T today in an effort that the company hopes will
revitalize their status that was in serious compromise during the
"tumultuous" nine-year tenure of present chairman, Robert Allen. The new
chairman will have to decide whether or not to deal with the bidding war
over MCI, chart a strategy to stave off declines in long-distance, and
revive flagging fortunes in local service and on the Internet.

**Digital Television**

Title: PBS Makes Digital Plans
Source: New York Times (D11)
http://www.nytimes.com/library/cyber/week/102097pbs.html
Author: Joel Brinkley
Issue: Digital TV
Description: While the more commercial television networks contemplate how
to make their transition into digital broadcasting, the Public Broadcasting
System (PBS) is plunging forward with a clearly articulated plan and lots of
enthusiasm. The intention of the PBS strategy, according to Gary P. Poon,
executive director of PBS's Digital Television Strategic Planning Office, is
"to do it all," taking advantage of all of the possibilities offered through
digital tv. According to Robert Coonrod, President of the Corporation of
Public Broadcasting, "technology is finally catching up with our mission."
The one problem PBS is facing is how they are going to pay for the
transition. Early this month, the Corporation for Public Broadcasting gave
the Clinton Administration a proposal outlining what their 349 stations
intend to do with the new, digital channels, along with a request for $771
million to help pay for it. This request, designed to be paid out over a
three year period, represents just a portion of PBS's needs with the total
transition costs coming in at $1.7 billion. PBS officials are hoping to
raise the additional $1 billion from foundations, state governments and
viewers.

**Encryption**

Title: French Proposal For Encryption Is Worrying EC
Source: Wall Street Journal
http://www.wsj.com
Author: Jennifer L. Schenker
Issue: Encryption
Description: France is proposing a law that would ensure government access
to corporate electronic communications. It's the only Western country that
bans any domestic use of cryptography, and places strict controls on the
export of encryption tools. The new rules, however, allow businesses in
France to encode their corporate secrets but require the code be given to
French-gov't approved entity in which the majority of the capital or votes
is retained by French nationals. Microsoft Corp., Netscape Communications
Corp., and the Business Software Assoc. have raised objections to the
proposal's "kicker": the requirement of companies selling products with
encrypted codes in France to reveal their "source codes". The BSA is
expected to release a statement supporting the European Commission's
decision to reject this "key-recovery" approach to encryption in the proposal.

**Internet**

Title: Steady Diet of Spam on Online Services
Source: New York Times (D4)
http://www.nytimes.com/library/cyber/techcol/102097techcol.html
Author: Peter H. Lewis
Issue: Internet
Description: "Spam," unsolicited commercial e-mail and automated bulk
mailings, is growing at an incredibly fast rate. Internet service providers
confirm that the problem is getting worse. "Aside from annoying many
people, the real problems with spam, some Internet experts say, involve the
traffic jams and computer crashes it can cause." In an effort to address
this problem, in the past six months, four bills have been introduced in
Congress intended to ban or regulate junk e-mail, more than a dozen bills
have been offered among the states and the Federal Trade Commission has
commissioned a study of possible solutions. Some Internet service providers
also are working to cut down on the amount of spam they relay. However,
there is concern that these new tactics threaten to disrupt the very nature
of the Internet, which "grew into a powerful communications medium on the
fundamental premise of computers on the network freely handling and
forwarding one another's messages."

**Internet Content**

Title: The Discontent Over the Content
Source: Washington Post (WashTech, 17)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/20/0121-102097-idx.html
Author: Elizabeth Corcoran
Issue: Internet Content
Description: AOL has had several run-ins with groups that manage areas
devoted to special topics (photography, sports, games, etc.) since January.
Their decision to charge a flat rate of $19.95 a month instead of
by-the-minute billing changed the nature of many of the financial
relationships AOL had with content providers. "Some contracts [with content
providers] were canceled," after the flat pricing took effect, said AOL
spokeswoman Tricia Primrose. For AOL, with its eye on Wall Street, "the days
of heavy investing without a return on investment have ended," she added.
AOL used to share the per-minute charges with the providers, now they are
unwilling to share subscriber fees, requesting that providers line up
advertisers, and charging commissions for things sold electronically. While
there are some who support AOL's "more business-like approach", there are
providers who have turned "independent" by going straight to the Web. Some
business executives, like Jim Wayand, a VP of business development for
"onQ", express the concern that as AOL becomes more focused on the business
they may end up not enough heed to the value of the community nature of the
network of small info providers.

**Internet: General Info**

Title: Microsoft to Add Search Capabilities To Free Version of Its On-Line
Service
Source: Wall Street Journal (B11)
http://www.wsj.com
Author: Don Clark & David Bank
Issue: Internet: General Info
Description: Microsoft is adding new World Wide Web search capabilities in
1998 through a licensing deal with Inktomi Corp. to beef up a website called
MSN.com, the free part of its subscription-based Microsoft Network on-line
service. The free site is now emerging as a key-content development focus in
its own right.

Title: Who Knows Why but They Don't Say When
Source: Washington Post (WashTech, 19)
http://www.washingtonpostcom/wp-srv/WPlate/1997-1-/20/0181-102097-idx.html
Author: Margot Williams
Issue: Internet: General Info
Description: Quality standards for information from the Web or online
commercial databases ought to be no different from standards that apply to
print. Finding the dates on documents and files has been a question of many
a researcher. But search engines treat dates differently. Only HotBot and
AltaVista display the file date, the date the file was placed on its Web
server. Many other search engines, like Excite, Infoseek, and Webcrawler,
display no date at all. Danny Sullivan, editor of "Search Engine Watch",
said, "I think it would be beneficial to all search engine users if it was
standard for search engines to report the date a Web page was spidered...in
this way, they could instantly know how out-of-date the search engine was."

**Lifestyles**

Title: When Venting Computer Rage The First Step Is The Longest
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/102097smash.html
Author: Matt Richtell
Issue: Lifestyles
Description: Rage against the Machine, no - not the band, took on a new
meaning this weekend above a San Francisco parking lot. The 'Big Crash', an
event sponsored by the nationally syndicated radio show On Computers,
invited listeners to vent their frustrations against every problem they have
ever had to encounter via their computer, be it crashing hard drives,
disfunctional software, e-mail difficulties, printer problems, lost files,
etc. Renn Vara, who founded On Computers in 1992 and is one of three hosts,
points out that his listeners definitely aren't Neo-Luddites, stating that
"All these people love computers, they love the industry. But I kept
noticing that there was something else at play. We can't ignore that there
is a lot of underlying frustration. We decided to give them one week to get
it out of their systems." The program also held an essay contest to find
the most "poetically stated computer angst." The winner, a 53-year-old
engineer, won a new Dell computer and was flown to San Francisco to
indelicately discard his old one.

**Mergers**

Title: Rivals Assail GTE on Impact Of Bid for MCI
Source: Wall Street Journal (B1)
http://www.wsj,com
Author: Leslie Cauley
Issue: Merger
Description: GTE says a combination with MCI would ignite competition
across the phone industry. But rivals contend that GTE uses every regulatory
and legal trick to block competitors from getting in, despite deregulation
aimed at opening local markets. GTE has sued to block federal rules aimed at
encouraging local competition, and fought "interconnection agreements"
imposed by states. Consumer advocates think that an MCI-GTE union would mean
fewer choices and higher prices. Mark Cooper, research director for the
Consumer Federation of America, said, "These are two companies that were
supposed to be competing in every market. [A merger] turns them into one.
That arithmetic doesn't help consumers."

Title: Bargain or Burden? The Question of MCI's Worth
Source: Wall Street Journal (B10)
http://www.wsj.com/
Author: Stephanie N. Mehta
Issue: Merger
Description: The money being thrown around in the record-breaking bidding
war for MCI has posed a question about the actual worth of the country's
second-largest long-distance carrier. Is MCI overpriced because impending
competition from the Baby Bells eventually will drive down its vaunted 20%
of the long-distance market? Or is MCI worth a bundle because that
competition will make the brand name more valuable? Some industry insiders
say that MCI isn't worth what it was a year ago. On the other hand, some say
that as an incumbent in a sea of newcomers and sweeping changes, MCI would
have the ability to differentiate itself in the market. And, its strong
relationship with corporate customers, along with their successful expansion
of services could help MCI stave off competition. "The value of MCI to each
of the bidders is not reflective of what MCI is as a stand-alone company is
worth," noted Guy Woodleif, a telecom analyst with Prudential Securities.
"It's more reflective of what MCI brings to the suitor."

*********

(More) Merger Mania
NYT: As MCI Fight Grows, the Wall St. Entourage Builds
NYT: From Wimp to Kingmaker in Battle for MCI
WP: GTE's Careful Strategy a Hallmark Of Its Quiet General,
Analysts Say
WP: Prospect of Takeover Brings Calls for Regulatory Review
WSJ: Battle for MCI May Be Just Beginning
WSJ: GTE Targets Policy Makers in Promoting Bid

Broadcasting Regulation
NYT: Defying NATO, Hard-Line Serb Resume Broadcasting in Bosnia

Internet Regulation
NYT: Lawyer Subpoenas Data From Newspaper's Web Site

Lifestyles
NYT: Cyberfashion: A Whole New Meaning to Booting Up

Media and Politics
NYT: Candidates Extend Credo 'All Politics Are Local' to Web

Wireless
Telecom AM: Bell Canada and Two Others Team To Roll Out Wireless
CLEC Service In Mexico

** (More) Merger Mania **

Title: As MCI Fight Grows, the Wall St. Entourage Builds
Source: New York Times (C4)
http://www.nytimes.com/1997/10/17/news/financial/mci-wall-st.html
Author: Peter Truell
Issue: Mergers
Description: The multi-billion dollar battle for MCI has highlighted a
feeding frenzy in the telecom industry for investment banks and lawyers. An
"A-list" of advisers are living lovely off of the transaction, whether
they're directly involved or not. Colin Knudsen, a managing director at
Donaldson, Lufkin & Jenrette, said, "If you asked me six months ago whether
there was a chance of a bidding war for MCI, I would have said not a chance.
This will change everything in the telecommunications industry."

Title: From Wimp to Kingmaker in Battle for MCI
Source: New York Times (C1)
http: //www.nytimes.com/1997/10/17/news/financial/bt-phone.html
Author: Seth Schiesel
Issue: Mergers
Description: Ever since GTE and Worldcom made their record-breaking bids for
MCI, British Telecom, who made the initial bid, has had to bear a somewhat
impotent image. This is no more, now that BT could emerge as the potential
"kingmaker" because of its unique position as MCI's largest shareholder
(20%) and as the gatekeeper to an internat'l communications market. "Three
seats and 20% of the equity is a lot of power," said William Vogel, a
telecom analyst for Nations-banc Montgomery Securities. "BT has a lot of
sway here."

Title: GTE's Careful Strategy a Hallmark Of Its Quiet General, Analysts Say
Source: Washington Post (G1)
http://www.washingotnpost.com/wp-srv/WPlate/1997-10/17/1221-101797-idx.html
Author: Mark Leibovich
Issue: Mergers
Description: Analysts are finding that GTE is projecting itself as a new,
hardened, aggressive telephone giant that just staged a "predawn commando
style raid" with their $28 billion in cash offer to buy MCI, even as two
other companies were bidding. People who know GTE's chief exec, Charles Lee,
know of his penchant for military imagery, and know that he's applying the
same attitude to his bid for MCI. Chris Landes, a telecom analyst with
Telechoice Inc., said, "This is not a ranting and raving executive, but Lee
is a man who uses his allies and skills well."

Title: Prospect of Takeover Brings Calls for Regulatory Review
Source: Washington Post (G1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/17/1211-101797-idx.html
Author: Mike Mills
Issue: Mergers
Description: MCI said it would begin negotiations with Worldcom and GTE, the
two rival suitors in a bidding war that could be the richest corporate
takeover battle in history. This announcement came as critics demanded a
regulatory review of a merger with either one. Worldcom is offering $30
billion in stock-only currency, while GTE is offering $28 billion in cash,
or $40 per MCI share. Meanwhile, BT, whose $21 billion can't stand up to the
others, will likely try to broker some kind of 3-way deal to insure the
British access to the U.S. market. Daniel Zito, an analyst with Legg Mason
Wood Walker Inc., said he would prefer Worldcom as a partner for MCI but
that "from a shareholder's perspective, all else being equal, cash wins."
Either merger requires the FCC's and the Justice Dept.'s approval.

Title: Battle for MCI May Be Just Beginning
Source: Wall Street Journal (A3, A8)
http://wsj.com/
Author: Steven Lipin
Issue: Mergers
Description: Yesterday, MCI and British Telecommunications announced that
they will allow each other to "talk to the two unsolicited bidders without
triggering a violation of their ammended accord. This is the first sign
that MCI wants to explore both bids by creating a level playing field, but
the move itself doesn't automatically suggest that an auction of MCI is
underway yet, observers say."

Title: GTE Targets Policy Makers in Promoting Bid
Source: Wall Street Journal (A8)
http://wsj.com/
Author: John R. Wilke and Bryan Gruley
Issue: Mergers
Description: GTE has been talking with policy makers in Washington trying to
convince them that their proposal to MCI is good for consumers. GTE
believes their bid should win Federal approval because it will ignite
competition against AT&T and the Baby Bells. GTE also has come out against
WorldCom's proposal saying that it would "limit competition and leave
residential customers on hold." "We're going to serve all markets and all
Americans, not just cherry-pick business customers," said William Barr, GTE
general counsel. He added, "WorldCom wants to jettison most of MCI's
residential business and would dominate the Internet," boosting prices for
Internet users.

** Broadcasting Regulation **

Title: Defying NATO, Hard-Line Serb Resume Broadcasting in Bosnia
Source: New York Times (A12)
http://www.nytimes.com/1997/10/17/news/world/bosnia-broadcasts.html
Author: Mike O'Connor
Issue: Broadcasting Regulation
Description: Hard-line Bosnian Serbs managed to circumvent the NATO troops
that seized their stations, citing that their broadcasts were a danger to
peace, and returned to the airwaves. NATO spokesmen said they didn't know
how the Serb authorities were broadcasting or how much of the
country they were reaching. "The idea is to go back to business as usual,"
said Jovan Zametica, an advisor to Radovan Karadzic, leader of the Bosnian
Serb hard-liners. "Real Serb TV is back on the air."

**Internet Regulation **

Title: Lawyer Subpoenas Data From Newspaper's Web Site
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101797security.html
Author: The Associated Press
Issue: Internet Regulation
Description: "The Ventura County Star was subpoenaed by defense attorneys in
a murder case for information about people who have used the newspaper's
Internet site. The subpoena, which asks for unpublished e-mail and
demographics of people who participated in an online survey about the case,
explores new territory between legal protections for the media and a
defendant's right to a fair trial, said Terry Francke, a media attorney with
the California First Amendment Coalition." "This is very new, and I suspect
the courts will be grappling with more and more of these types of requests
from attorneys as the medium grows."

** Lifestyles **

Title: Cyberfashion: A Whole New Meaning to Booting Up
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101797wearable.html
Author: Erica Noonan
Issue: Lifestyles
Description: Funky cyber-clothing premiered on Wednesday at the
Massachusetts Institute of Technology Media Laboratory's Wearables
Symposium. The clothes were developed by MIT students who collaborated with
corporate sponsors and fashion students from France, Italy and Japan. The
fashions ranged from the practical, like a small device that transmits a
runner's heart rate, body temperature and speed to a real-time Web site. To
the more whimsical, like the "firefly" dress "made of electricity-conducting
organze, decorated with a spray of tiny, motion-sensitive lights which
flicker with the wearer's every move." The symposium was hosted by Leonard
Nimoy, who said that he enjoyed the futuristic apparel. "Some of these
ideas evolved from concepts first put forth in 'Star Trek,'" he said. "But
now they make 'Star Trek' gadgets look primitive." Keep an eye out for
these fashions which may eventually hit the retail market. (Judy Jetson -
watch out - millennium fashion's are here, Yeiowwww!)

** Media and Politics **

Title: Candidates Extend Credo 'All Politics Are Local' to Web
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/nation/101797nation.html
Author: Jason Chervokas & Tom Watson
Issue: Internet
Description: Bob Levine, a candidate for City Councilor in Ward 6 in the
city of Marlborough, has taken his campaign to the Internet to disseminate
info, bumper stickers, publish position papers, and collect e-mail addresses
for his direct mailing list. "A direct mailing to 1,100 homes costs $500,"
said Levine. "My Internet site is basically free." Levine will also be able
to announce the results of preliminary elections on his Web site hours
before the local paper prints its afternoon run. He even includes the
Website as part of his platform; vowing to use space to provide local
information about street repaving schedules, info that even local papers
don't necessarily deliver. He said, "People say the Internet's international
but really it's just as important for my ward."

** Wireless **

Title: Bell Canada and Two Others Team To Roll Out Wireless CLEC Service In
Mexico
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Wireless
Description: Bell Canada International (BCI), Mexican conglomerate Telinor,
and United Nations-sponsored project development company WorldTel have
formed a partnership to offer competitive local exchange carrier (CLEC)
service in Mexico. CLEC service will mainly use fixed wireless access.
Telinor, which is the first company authorized to offer local and
long-distance service in direct competition with state-owned Telmex, will
participate in radio spectrum auctions to be conducted in November to
acquire a nationwide footprint, company sources said. Tomas Milmo Santos,
CEO of Telinor, said, "Our objective is to actively participate in the
modernization of the Mexican telecommunications industry and serve as a
catalyst for economic development. We intend to deploy advanced
telecommunications infrastructure, provide a world-class service and create
several thousand good jobs." Derek Burney, chairman and CEO of BCI, added,
"Mexico represents an exciting opportunity, with its population of 93
million and a national wireline penetration rate of just 10 lines per 100
inhabitants. Our investment in Telinor reflects BCI's core strategy, working
with strong local partners and astute multinational investors to provide
high quality wireless services in promising markets with significant unmet
demand, good growth prospects and attractive competitive environments."

*********

Merger Mania
WSJ: Party Line: The Battle for MCI Takes Another Twist
WSJ: GTE Bid Leaves Street Buzzing
WSJ: Baby Bells Remain Bystanders in Phone Takeover Wars
WP: Analysts Say if Money Talks MCI Will Snub Worldcom
WP: GTE Joins Bidding War For MCI
NYT: Anatomy of a Bid: Less From GTE May Mean More
NYT: GTE Joins Bidding For MCI, Offering $28 Billion In Cash
NYT: Lucent to Buy Internet Servicer

Arts
NYT: A Towering European Addition To the Skyline of Electronic Arts

Cable
WSJ: Why Microsoft Wants to Hook Into Cable TV

Internet
NYT: BMI Develops Robot to Monitor Online Music Sales

Internet Regulations
NYT: Ban Online Gambling? Australia Would Rather Tax It

Public Television
WP: Public TV's Distress Call

Universal Service
FCC: Third Report & Order on Universal Service, Schools, and Libraries

** Merger Mania **

Title: Party Line: The Battle for MCI Takes Another Twist
Source: Wall Street Journal (A1)
http://wsj.com/
Author: John Keller & Steven Lipin
Issue: Mergers
Description: WorldCom? That's last week's news. GTE has made an all-cash $28
billion offer to purchase MCI. GTE has been saying that it could make it
alone in the telecom wars even as other big mergers were announced. CEO
Charles Lee has changed the tune: "This is a great target opportunity. MCI
jump-starts our strategy. We can still go it alone, but with MCI, we can
move to where we wanted to be four to five years sooner." Bankers and
analysts will now have to figure out what bid for MCI is best: British
Telecom, WorldCom, or GTE.

Title: GTE Bid Leaves Street Buzzing
Source: Wall Street Journal (C1)
http://wsj.com/
Author: Susan Pullman
Issue: Mergers
Description: The race is on, analysts say, for telecoms to become
"vertically integrated;" to be able to offer not just local and long
distance service to residential and business customers, but Internet access
as well. The question is: Who will get there first? Analysts think that AT&T
is falling far behind: it has no local service strategy and no Internet
strategy. They think AT&T should have paired up with GTE which is now
bidding for a takeover of MCI.

Title: Baby Bells Remain Bystanders in Phone Takeover Wars
Source: Wall Street Journal (B4)
http://wsj.com/
Author: Leslie Cauley
Issue: Mergers/Telecommunications Regulation
Description: Another major development in the $170 billion phone industry
and once again the Baby Bells are on the sidelines watching. "It's not fair.
It's not right," groused a SBC executive in response to the GTE bid for MCI.
"We would love to be able to act totally on what we believe is best for our
company and our customers, rather than being restrained by restrictions,"
another Bell executive said. The local telephone companies are upset because
the FCC will not let them into in-region long distance.

Title: GTE Joins Bidding War For MCI
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/16/
Author: Mike Mills
Issue: Mergers
Description: MCI Corp. got another buy out proposal of $28 billion dollars
from GTE Corp. GTE offered $40 in hard cash for every MCI share in hopes of
quashing Worldcom's surprise bid of $30 billion in stock-only currency. GTE
is the country's largest provider of local telephone service and also
proposed creating a new local, long distance, and online superpower.
Analysts anticipate British Telecom, who made the initial bid, to drop out
of what can be termed an "80's style hostile takeover battle." "MCI has
cream-of-the-crop consumer and business customers," said Brian Adamik, an
analyst for the Boston-based Yankee Group. "That looks very attractive to GTE."

Title: Analysts Say if Money Talks MCI Will Snub Worldcom
Source: Washington Post (A15)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/16/
Author: Jerry Knight
Issue: Mergers
Description: Investment analysts are asking this question of the bidding war
that Worldcom, BT, and now GTE, have sparked around the aquisition of MCI:
Would you rather have cash in the bank to invest any way you like or own
stock in a company you don't know much about? GTE offered $28 billion, or
$40 in cash for every MCI share, in hopes of beating Worldcom's $30 billion
stock-as-currency bid. Investors would have to pay federal capital gains
taxes on profits immediately after selling MCI stock for cash. A swap of MCI
shares for Worldcom stock would be tax-free, but investors would have to pay
taxes sooner or later upon selling their Worldcom shares. Ivan Arteaga, an
analyst at Gabelli & Co., said, "Cash is cash. From an investor's
perspective, the cash is important even though you have a tax issue." GTE is
expected to come up with the cash by selling bonds or borrowing from banks.
Worldcom's shares are worth more right now than GTE's cash offer, but what
if Worldcom's stock falls?

Title: Anatomy of a Bid: Less From GTE May Mean More
Source: New York Times (D1, D21)
http://www.nytimes.com/yr/mo/day/business/index.map?271,168
Author: Floyd Norris
Issue: Mergers
Description: GTE, the latest company to make a bid for MCI, may be offering
the best overall proposal that MCI has seen to date. While Worldcom's bid
is higher in price, their offer is in the form of stock. This raises the
question of whether Worldcom's shares are fairly priced. "If they are
overpriced, then most MCI shareholders are likely to be disappointed in the
long term." With GTE's bid being offered in the form of cash, their proposal
is possibly better for MCI's shareholders as a group.

Title: GTE Joins Bidding For MCI, Offering $28 Billion In Cash
Source: New York Times (A1, D21)
http://www.nytimes.com/index.map?441,143
Author: Seth Schiesel
Issue: Mergers
Description: Yesterday, GTE, the nations third-largest local telephone
company, made an unsolicited bid to buy MCI for $28 billion in cash.
Outside of the financial side of the three offers they have received, MCI
must weigh the different sort of telecommunications that would be created
depending on whose proposal they decide to go with. If they agree to BT's
bid, their alliance would focus on serving large multi-national
corporations. If MCI goes with Worldcom's offer, they would be assisting
Worldcom in expanding their "core constituency of small and
medium-sized American business customers for local, long-distance and
Internet services." And if they decide to accept GTE's bid, MCI would be
helping GTE to increase their consumer clientele in the long-distance
service realm. According to Bryan Van Dussen, a telecommunications analyst
for the Yankee Group, a high-technology consulting firm in Boston,
"acquiring MCI would give an even larger near-term edge to GTE. GTE wants
to be a national player again, and, strategically, this obviously positions
them to achieve that." MCI did not comment other than saying that their
board would meet again in the near future to review their options.

(WHEW!!!)

Title: Lucent to Buy Internet Servicer
Source: New York Times (D7)
http://www.nytimes.com/yr/mo/day/news/financial/lucent.html
Author: Bloomburg News
Issue: Mergers
Description: Lucent Technologies Inc. announced yesterday that it would buy
Livingston Enterprises Inc., makers of remote-access concentrators, "which
are used by Internet service providers to link telephone lines into the
global computer network," for $650 million in stock. Their purchase moves
Lucent "into one of the fastest growing segments of the computer-networking
business."

** Arts **

Title: A Towering European Addition To the Skyline of Electronic Arts
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/mirapaul/101697mirapaul.html
Author: Matthew Mirapaul
Issue: Arts
Description: With more artists than ever using cutting-edge technology to
create their work, the Center for Art and Media Technology, in Karlsruhe,
Germany, will open their doors on Saturday as one of the best examples to
date of art institutions working to keep up with electronic culture. Called
the ZKM, short for Zentrum fur Kunst and Medientechnologie, its 1918
structure has been "completely reconfigured, renovated, wired and equipped
to provide abundant acreage for their already substantial and still growing
collections of electronic art, multimedia displays and virtual-reality
installations." This huge facility also contains "extensive research
facilities, a design school and a multimedia library." "What is special is
that ZKM tries to put new art into a context and a history. It is a brave
and bold move, and I think it will influence many people to move in this
direction." said interactive artist Lynn Hershman.

** Cable **

Title: Why Microsoft Wants to Hook Into Cable TV
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: David Bank
Issue: Cable/Infrastructure
Description: Microsoft is willing to write some pretty big checks to make
sure its software runs cable TV Internet access. The company is negotiating
investing $1 billion in TCI, the nation's largest cable operator. Microsoft
has already invested $1 billion in Comcast Cable and purchased WebTV for
$425 million. The software giant wants to dominate interactive services to
the home just as it has dominated business-based personal computers. The
cable industry is weary of a Microsoft takeover and Oracle wants to take
advantage of that and get its software onto cable boxes.

** Internet **

Title: BMI Develops Robot to Monitor Online Music Sales
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101697music.html
Author: David Bauder
Issue: Internet
Description: Whose big brother is watching who? In an effort to monitor
transmission and sales of music on the Internet, BMI, the music licensing
agency, announced yesterday that it has developed a "Web robot". Their
invention works as a "lightening-fast Web surfer to identify sites that use
music and how often computer users visit them." Potentially, the "Web
robot" can be used to "keep track of the most popular music bought or
transmitted on the Web, sort of a cyber top 10" as well as being a possible
precursor to messy copyright battles.

** Internet Regulation **

Title: Ban Online Gambling? Australia Would Rather Tax It
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101697gambling.html
Author: Jeri Clausing
Issue: Internet
Description: "While American politicians are struggling to find a way to ban
or at least restrict online gambling, Australian lawmakers have drafted a
plan that would introduce legislation simultaneously to tax and regulate
online gambling." Brian Farrell, manager of gambling operation and auditing
with the Victorian Casinos and Gaming Authority in Melbourne said, "Over the
years, every time we have had trouble with illegal forms of gambling --
phone book gambling, unlicensed casinos -- what we've done is provide a
well-regulated alternative for people to access. That means the unlicensed
activity drops to a relatively low level of significance. That same theory
applies to the globalization of the Internet." Australia's approach is in
direct contrast with the United State's approach to online gambling. Jim
Haney, a spokesman for the National Association of Attorneys General
lobbying to ban Internet gambling in states that outlaw gambling, pointed
out that "Gambling is a unique enterprise in the United States in that we
have really allowed each state to set its own gambling policy. Internet
gambling upsets that scheme of local control and local decision making."
Haney added: "Certainly, it is difficult to enforce state and federal laws
when indeed you are dealing with an international communications system.
However, the people in Australia, to the extent that they are targeting the
citizens of Wisconsin, must comply with Wisconsin law. If they are
distributing child pornography to this state, they cannot expect to escape
prosecution for violating our gambling laws." (place your bets now...)

** Public Television **

Title: Public TV's Distress Call
Source: Washington Post (B9)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/16/
Author: Paul Farhi
Issue: Broadcast Budget Issues
Description: Public TV broadcasters have asked the gov't for $771 million
to help cover the cost of converting the stations to new digital
broadcasting technology. The convert to digital will offer stations the
potential to transmit multiple programs simultaneously. The FCC has set a
deadline of 2003 for public stations to make the switch. If they don't, they
could risk losing their right to use the airwaves, according to Bob Coonrod,
president of the Corporation for Public Broadcasting. With digital
broadcasting, public stations could run day long programs for preschoolers,
instructional shows for elementary school students, and job training shows
for adults all at once.

** Universal Service **

Title: Third Report & Order on Universal Service, Schools, and Libraries
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1997/fcc97380.html
Issue: Universal Service
Description: "In this Order, we adopt a filing window period that begins on
the date that the Schools and Libraries Corporation and the Health Care
Corporation begin to receive applications for support. We also conclude that
the administrative corporations will determine the length of the window and
resolve other administrative issues necessary to implement our decision to
adopt a window filing period consistent with our guidance set forth below.
Therefore, we amend sections 54.507(e) and 54.623(c) of our rules to
implement this change. In addition, we delegate authority to the Chief,
Common Carrier Bureau to resolve unanticipated technical and operational
issues relating to the new universal service mechanisms that may arise in
the future."
*********