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Communications-related Headlines for 10/15/97

** Sorry for the unedited version that was posted earlier this morning. **

Baby Bells Win Court Battle vs FCC
WSJ: FCC Out of Bounds on Pricing Rules for Local-Phone Market,
Court Finds
NYT: Local Bells Win a 2nd Victory to Block Rivals

Jobs
NYT: New Breed of Worker Transforms Raw Information Into Knowledge

Advertising
WSJ: Chrysler Drops Its Demand for Early Look at Magazines

Internet
WP: Should Children Be Kept Offline?

InfoTech
WSJ: Air Waves
WSJ: The Ability to Pull A Disappearing Act is Just Disappearing
WP: Va. Computer Repair Cost Doubles

Competition
WP: AT&T Joins Wireless Phone Fight

Lifestyles
NYT: Toy Makers To Sponsor Design Lab At M.I.T.

** Baby Bells Win Court Battle vs FCC **

Title: FCC Out of Bounds on Pricing Rules for Local-Phone Market, Court Finds
Source: Wall Street Journal
http://.wsj.com/ (B17)
Author: Leslie Cauley & John Wilke
Issue: Telephone Regulation
Description: The Eighth Circuit Court of Appeals in St. Louis ruled that the
Federal Communications Commission could not force Baby Bells to lease and
then "recombine" network parts at a 70% discount to rivals. The Bells
successfully argued that the rivals -- mainly long distance carriers --
would just be reselling service and therefore should not qualify for the
discounts. FCC Chairman Reed Hundt has vowed to appeal all the way to the
Supreme Court. He said that the ruling allows Bells "to subvert competition"
and may mean that consumers will not have a choice for their local phone
service.

Title: Local Bells Win a 2nd Victory to Block Rivals
Source: New York Times (D1, D22)
http://www.nytimes.com/yr/mo/day/news/financial/fcc-phone-competition.html
Author: Seth Schiesel
Issue: Telecommunications
Description: In St. Louis yesterday, a Federal appeals court threw out
regulations that were intended to promote competition with local telephone
companies. This is a major blow to long-distance phone companies that were
planning to get involved in local telephone markets. Analysts believe that
the court's decision could force long-distance companies to spend billions
of extra dollars to build their own local networks.

** Jobs **

Title: New Breed of Worker Transforms Raw Information Into Knowledge
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101597knowledge.html
Author: Matt Richtell
Issue: Jobs
Description: There is a growing number of employees whose job is to take
overwhelming masses of information and transform it into something that is
tangible, accessible and useful. These 'knowledge managers' are part of one
of the hottest trends in the business world. This study of knowledge
management "evolved from the need of companies to manage resources more
effectively in a hyper-competitive, global economy," said Robert E. Cole,
professor of business administration at UC Berkeley. Another reason for
this growing trend, outside of information being so plentiful, is that the
US economy is increasingly service based. But instead of selling material
products, the top competitors are now selling ideas. The new products offer
consumers systems that will aid them in finding answers. For example, "The
biggest problem is that people don't know what they're looking for," said
Peter Tierney, chief executive officer of Inference. "They'll say, 'I'm
having a problem with my computer.' Then the system will say, "Well, here's
a list of problems. Which most resembles the problem you're having?'"
"Given how many Americans work in fields where the products are ideas, it is
fair to say that many of us are knowledge workers already. Says one San
Francisco Bay Area futurist: 'If you have trouble explaining to your mother
what you do, you're probably a knowledge worker, too.'"

** Advertising **

Title: Chrysler Drops Its Demand for Early Look at Magazines
Source: Wall Street Journal
http://.wsj.com/ (B1)
Author: G. Bruce Knecht
Issue: Advertising
Description: Last year, Chrysler spent $1.1 billion in advertising. $270
million was spent on advertising in 350 magazines and Chrysler had asked for
pre-notification of controversial articles in editions they had placed ads.
After two publishing-industry groups urged members to reject Chrysler's
demands, the company has backed off and says that it will not request
pre-notification nor read any that comes unsolicited. Other companies, like
Chicago-based Baby Bell Ameritech, request pre-notification and do not plan
to change policy because of Chrysler's change of heart.

** Internet **

Title: Should Children Be Kept Offline?
Source: Washington Post (B1)
http://washingtonpost.com/wp-srv/WPlate/1997-10/15/0841-101597-idx.html
Source: Washington Post (B1)
Author: Victoria Benning
Issue: Internet Regulation
Description: Fairfax County officials have proposed a policy that would
allow them to bar children younger than 13 from using the Internet in public
libraries. Under the policy considered, a child's parents or guardians would
have th right to notify the library system that they don't want him or her
given access to the 'Net. Children 13 or older would have unrestricted
access. This proposal is a compromise between those who want the libraries
to have tougher Internet restrictions and those who see any limits as a form
of censorship. The plan's author, Charles A. Fegan, who is also a member of
the Fairfax County Library's Board of Trustees, said, "I don't believe in
censorship at all...this is a way of facing up to that reality and giving
parents an opportunity to get involved."

** InfoTech **

Title: Air Waves
Source: Wall Street Journal
http://.wsj.com/ (A1)
Author: Jeff Bailey
Issue: Satellites
Description: Seven-foot-wide satellite dishes -- in the early 90's so
popular that they were named the state flower of Louisiana -- are no one's
favorite anymore with the introduction of 18" dishes. Door-to-door salesmen
used to sell the big dishes at $2,000 - $5,000 a pop in rural areas, signing
people on to long payment schedules. For big-dish buyers, "it was a jolting
lesson in the rapid obsolescence of consumer electronics." But it was just
as an unpleasant lesson for the consumer-finance industry.

Title: The Ability to Pull A Disappearing Act is Just Disappearing
Source: Wall Street Journal
http://.wsj.com/ (A1)
Author: Cynthia Crossen
Issue: Privacy
Description: Ever get that old, romanticized urge to just dump your life and
begin a new one as a new person? Well forget it in an age of sophisticated
security systems and the availability of so much personal data available via
computers. "Sure, you can disappear if no one's looking for you," says the
president of a firm that finds missing persons. "But if someone is energetic
enough in trying to find you, they can probably find you."

Title: Va. Computer Repair Cost Doubles
Source: Washington Post (B5)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/15/124|-101597-idx.html
Author: Ellen Nakashima
Issue: Info Tech
Description: Legislative auditors warned today that Virginia will have to
come up with $100 million to retool ther computer systems for the year 2000.
They warned that driver's licenses could go unrenewed, tax refunds could go
un mailed, and criminal background checks unmade. The problem stems from
dated information stored in state computers with only two digits for the
year. "The next governor's going to be accountable for any breakdowns in the
state computer systems," said Philip Leone, director of the Joint
Legislative Audit and Review Commission. "...it's not glamorous, but it's
the price of providing the citizens of Virginia high-quality services." But,
Va. isn't alone with this problem: Maryland will have to pay $101 million to
fix their systems, while D.C. hopes to spend $25 million to fix theirs.

** Competition **

Title: AT&T Joins Wireless Phone Fight
Source: Washington Post (C13)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/15/0481-101597-idx.html
Author: Mike Mills
Issue: Competition
Description: AT&T Corp. has officially joined the wireless phone market,
hoping that their status as an all-digital network will put them on top. In
a market crowded by Bell Atlantic Mobile, Cellular One, Nextel, and Sprint
Spectrum, analysts say AT&T will probably compete based on service details
rather than rates. AT&T phones communicate using the binary code of
computers, which adds features like anti-eavesdropping security, extended
battery life, caller i.d., paging, and short e-mail messages. The most
unique quality of the service is the phone's ability to work in either an
"analog" or digital mode. Users can "roam" anywhere nationwide and be able
to connect with an AT&T digital network, or a local cellular carrier.

** Lifestyles **

Title: Toy Makers To Sponsor Design Lab At M.I.T.
Source: New York Times (D10)
http://www.nytimes.com/library/cyber/week/101597toys.html
Author: John Markoff
Issue: Lifestyles!
Description: The M.I.T. Media Lab plans to announce today a five-year
research project to design "smart toys". The project, called Toys of
Tomorrow, will be underwritten by four leading toy and entertainment
companies. "There is no question in my mind that going into the new
millennium technology will fundamentally change the way children play," said
Jill Barad, chief executive of Mattel. And Michael Hawley, a professor at
the Media Laboratory who will direct the project, said "rapid change in the
toy industry is perfectly matched to the pace of technological change in the
computer industry." Hmmmmm, still holding onto those "Star Wars Action
Figures?"
*********

Communications-related Headlines for October 14, 1997

Arts and Humanities
WP: Arts Termed Elitist

Campaign Finance Reform
NYT: California To Put Campaign Donations On-Line
WP: TV Stations Curtail Discount Ads for Virginia Campaign

Online Services
NYT: Online Music Retailer Begins Campaign
WSJ: CompuServe to Unveil On-Line Service for Business
and Professional Users

Technology
NYT: Wearable Computers, The User Interface Is You
WP: Memory Bank for the World's Climates

**Arts and Humanities**

Title: Arts Termed Elitist
Source: Washington Post (E4)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/14/065|-101497-idx.html
Author: Jacqueline Trescott
Issue: Arts & Humanities
Description: A new study from the NEA titled "American Canvas" has warned
that the arts world is elitist, classist, financially unstable, and neither
as democratic or as popular as it should be. This report was issued by
outgoing NEA Chairman Jane Alexander, which also said that the audience for
the nonprofit arts remain "highly skewed" because the arts community has
failed to expand its audience beyond the older, wealthier, educated, and
white patrons who predominated at the beginning of the century. Even though
the report chastises the arts community, its also contains examples of
successful partnerships and programs that NEA hopes will be adopted by more
groups to prove the central importance of the arts in local communities. But
the report still emphasized that "the arts community itself bears a measure
of responsibility for the marginalization of the nonprofit culture...the
arts community neglected those aspects of participation, democratization and
popularization that might have helped sustain the arts when the political
climate turned sour."

**Campaign Finance Reform**

Title: California To Put Campaign Donations On-Line
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101297disclosure.html
Author: Rebecca Fairly Raney
Issue: Campaign Finance Reform
Description: By the year 2000, voters in California will be able to find out
who is giving money to which candidate via the Internet. In the Online
Disclosure Act of 1997, a law that Gov. Pete Wilson signed on Saturday, the
public will be able to access state contribution data online. "Voters now
have more information about legislation, political currents and changes in
government than ever before because of the Internet," Wilson said in a
statement released by his office on Saturday. "This is fundamentally
democratic and I am pleased to sign this bill." Secretary of State Bill
Jones said: "The voters have been saying 'show me the money.' Beginning
with this next election cycle they will finally be able to see the money for
themselves."

Title: TV Stations Curtail Discount Ads for Virginia Campaign
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/14/128|-101497-idx.html
Author: Spencer S. Hsu
Issue: Campaign Finance Reform
Description: WJLA-TV (ch. 7), WRC-TV (ch. 4), WUSA-TV (ch. 9), and WTTG-TV
(ch. 5) have informed Virginia's candidates for governor, James Gilmore III
(R) and Donald Beyer Jr. (D), that they'll limit air-time purchases by the
campaigns by roughly 40% between now and the Nov. 4 election. WLJA-TV cited
open-market competition and limited audience interest in the Va. campaigns
among MD. and D.C. viewers. "It's a very, very healthy market economically,
so it's tough for anybody to get TV time," said Terry Connelly, WJLA's
president and GM, who also said that Washington's
stations are raking in profits well above last year. William D. Dolan III,
Virginia's Democratic nominee for attorney general, said, "These people are
looking at political debate with the same commercial eye that they look at
selling sausage. It's a terrible thing."

**Online Services**

Title: Online Music Retailer Begins Campaign
Source: New York Times (D10)
http://www.nytimes.com/library/cyber/week/101497cdnow.html
Author: Stuart Elliott
Issue: Online Services
Description: CD Now, an online music retailer, has begun a $10 million
campaign to make consumers more comfortable with the idea of shopping online
and thus stimulate sales. This is just one of several campaigns, sponsored
by companies like Amazon.com and I.B.M., that are attempting to demystify
"e-commerce". Many of these campaigns are using both traditional and
interactive media to get their message across.

Title: CompuServe to Unveil On-Line Service for Business and Professional Users
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Jared Sandberg
Issue: Online Services
Description: CompuServe is expected to unveil a new Web-based online service
aimed at business and professional users. Revenue will be derived from a mix
of advertising, subscription, and pay-per-use fees. CompuServe is feeling
the heat, losing customers to the Internet and will face tough competition
from services already on the Net like Yahoo!, Mining Co, and Encyclopedia
Britannica (which is expected to announce today a new Internet guide to
finding targeted information online). CompuServe's future is uncertain
because it was purchased by America Online in a deal earlier this year. [See
CompuServe's website at http://world.compuserve.com/]

**Technology**

Title: Wearable Computers, The User Interface Is You
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101497wearable.html
Author: Lisa Napoli
Issue: Technology
Description: Yesterday, 400 explorers from around the world gathered in
Massachusetts for the first-ever International Symposium on Wearable
Computers. Defenders of the wearable computer insist that these devices are
being created to liberate us, not confine us. These computers, that are
being designed in all types of shapes and forms, are being created to make
our lives easier in the workplace, at home and in everyday life.

Title: Memory Bank for the World's Climates
Source: Washington Post (A15)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/14/038|-101497-idx.html
Author: Randolph E. Schmid
Issue: Technology
Description: The Nat'l Climatic Data Center hold's the nation's memory of
weather. "The climate is a resource of the country and the government needs
to be able to describe climate and its effect on commerce and the economy,"
said Ken Davidson, the acting director of the center. Located high in the
mountains of North Carolina, the center is constantly contacted by
researchers, lawyers, businesses, and students. Answering 917,000 queries
last year, lawyers are the biggest customers (28%) for requests concerning
climate conditions that may or may not have contributed to an accident. The
center was created in 1951 and combines civilian and military records.
*********

Communications-related Headlines for October 14, 1997

Arts and Humanities
WP: Arts Termed Elitist

Campaign Finance Reform
NYT: California To Put Campaign Donations On-Line
WP: TV Stations Curtail Discount Ads for Virginia Campaign

Online Services
NYT: Online Music Retailer Begins Campaign
WSJ: CompuServe to Unveil On-Line Service for Business
and Professional Users

Technology
NYT: Wearable Computers, The User Interface Is You
WP: Memory Bank for the World's Climates

**Arts and Humanities**

Title: Arts Termed Elitist
Source: Washington Post (E4)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/14/065|-101497-idx.html
Author: Jacqueline Trescott
Issue: Arts & Humanities
Description: A new study from the NEA titled "American Canvas" has warned
that the arts world is elitist, classist, financially unstable, and neither
as democratic or as popular as it should be. This report was issued by
outgoing NEA Chairman Jane Alexander, which also said that the audience for
the nonprofit arts remain "highly skewed" because the arts community has
failed to expand its audience beyond the older, wealthier, educated, and
white patrons who predominated at the beginning of the century. Even though
the report chastises the arts community, its also contains examples of
successful partnerships and programs that NEA hopes will be adopted by more
groups to prove the central importance of the arts in local communities. But
the report still emphasized that "the arts community itself bears a measure
of responsibility for the marginalization of the nonprofit culture...the
arts community neglected those aspects of participation, democratization and
popularization that might have helped sustain the arts when the political
climate turned sour."

**Campaign Finance Reform**

Title: California To Put Campaign Donations On-Line
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101297disclosure.html
Author: Rebecca Fairly Raney
Issue: Campaign Finance Reform
Description: By the year 2000, voters in California will be able to find out
who is giving money to which candidate via the Internet. In the Online
Disclosure Act of 1997, a law that Gov. Pete Wilson signed on Saturday, the
public will be able to access state contribution data online. "Voters now
have more information about legislation, political currents and changes in
government than ever before because of the Internet," Wilson said in a
statement released by his office on Saturday. "This is fundamentally
democratic and I am pleased to sign this bill." Secretary of State Bill
Jones said: "The voters have been saying 'show me the money.' Beginning
with this next election cycle they will finally be able to see the money for
themselves."

Title: TV Stations Curtail Discount Ads for Virginia Campaign
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/14/128|-101497-idx.html
Author: Spencer S. Hsu
Issue: Campaign Finance Reform
Description: WJLA-TV (ch. 7), WRC-TV (ch. 4), WUSA-TV (ch. 9), and WTTG-TV
(ch. 5) have informed Virginia's candidates for governor, James Gilmore III
(R) and Donald Beyer Jr. (D), that they'll limit air-time purchases by the
campaigns by roughly 40% between now and the Nov. 4 election. WLJA-TV cited
open-market competition and limited audience interest in the Va. campaigns
among MD. and D.C. viewers. "It's a very, very healthy market economically,
so it's tough for anybody to get TV time," said Terry Connelly, WJLA's
president and GM, who also said that Washington's
stations are raking in profits well above last year. William D. Dolan III,
Virginia's Democratic nominee for attorney general, said, "These people are
looking at political debate with the same commercial eye that they look at
selling sausage. It's a terrible thing."

**Online Services**

Title: Online Music Retailer Begins Campaign
Source: New York Times (D10)
http://www.nytimes.com/library/cyber/week/101497cdnow.html
Author: Stuart Elliott
Issue: Online Services
Description: CD Now, an online music retailer, has begun a $10 million
campaign to make consumers more comfortable with the idea of shopping online
and thus stimulate sales. This is just one of several campaigns, sponsored
by companies like Amazon.com and I.B.M., that are attempting to demystify
"e-commerce". Many of these campaigns are using both traditional and
interactive media to get their message across.

Title: CompuServe to Unveil On-Line Service for Business and Professional Users
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Jared Sandberg
Issue: Online Services
Description: CompuServe is expected to unveil a new Web-based online service
aimed at business and professional users. Revenue will be derived from a mix
of advertising, subscription, and pay-per-use fees. CompuServe is feeling
the heat, losing customers to the Internet and will face tough competition
from services already on the Net like Yahoo!, Mining Co, and Encyclopedia
Britannica (which is expected to announce today a new Internet guide to
finding targeted information online). CompuServe's future is uncertain
because it was purchased by America Online in a deal earlier this year. [See
CompuServe's website at http://world.compuserve.com/]

**Technology**

Title: Wearable Computers, The User Interface Is You
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101497wearable.html
Author: Lisa Napoli
Issue: Technology
Description: Yesterday, 400 explorers from around the world gathered in
Massachusetts for the first-ever International Symposium on Wearable
Computers. Defenders of the wearable computer insist that these devices are
being created to liberate us, not confine us. These computers, that are
being designed in all types of shapes and forms, are being created to make
our lives easier in the workplace, at home and in everyday life.

Title: Memory Bank for the World's Climates
Source: Washington Post (A15)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/14/038|-101497-idx.html
Author: Randolph E. Schmid
Issue: Technology
Description: The Nat'l Climatic Data Center hold's the nation's memory of
weather. "The climate is a resource of the country and the government needs
to be able to describe climate and its effect on commerce and the economy,"
said Ken Davidson, the acting director of the center. Located high in the
mountains of North Carolina, the center is constantly contacted by
researchers, lawyers, businesses, and students. Answering 917,000 queries
last year, lawyers are the biggest customers (28%) for requests concerning
climate conditions that may or may not have contributed to an accident. The
center was created in 1951 and combines civilian and military records.
*********

Communications-related Headlines for 10/13/97 (Colombus Day)

FCC
NYT: Of Megatrends and Giveaways: Some Thoughts and
Regrets of Chairman Hundt

Internet
WSJ: Tangled Web: How the Net Became Land of
Opportunity for Legal Profession

Newspapers
WSJ: Times Mirror Assigns Flagship a New Beat

Mergers
NYT: ICG Reported Near a Deal For Netcom
NYT: Worldcom Fancies Itself Muffler of the Local Bells
TelecomAM: MCI Close to Opening WorldCom Talks
TelecomAM: WorldCom Offer is Difficult Case for MCI to Ignore
TelecomAM: GTE Would Be In Control If a Merger with AT&T Takes Place

Philanthropy
WP: Can $500 Million Make a Dent?

Satellites
WP: Satellites and the Smaller Picture

Arts
NYT: Study Links Drop in Support To Elitist Attitude in the Arts

Privacy
NYT: High-Tech Eavesdropping Raises New Questions on Personal Privacy
NYT: Engineer Promotes Computerized Surveillance System

** FCC **

Title: Of Megatrends and Giveaways: Some Thoughts and Regrets of
Chairman Hundt
Source: New York Times
http://www.nytimes.com/yr/mo/day/news/financial/fcc-hundt-media.html
Author: Lawrie Mifflin
Issue: FCC
Description: Reed Hundt, the soon departing four year chairman of the
Federal Communications Commission, says that much of the mass change he has
witnessed over his tenure is a result of "converging circumstances - most
notably, the computer industry's emergence as a global economic force."
"Hundt's recognition of changing trends and his attempts to manage their
repercussions have made him probably the most influential FCC chairman in
years." On the eve of his departure, Hundt reflected on his time at the FCC,
adding that he plans to write a book titled "You Say You Want a Revolution"
stating that it shouldn't take him too long since "I've been giving the oral
version of it for about four years."

** Internet **

Title: Tangled Web: How the Net Became Land of Opportunity for Legal Profession
Source: Wall Street Journal
http://wsj.com/ (A1)
Author: Ann Davis
Issue: Internet Regulation
Description: Once, people reveled in the freewheeling, frontier style of the
Internet and the World Wide Web. Now the WWW is home for lawyers, lawsuits
and fine print. Law firms are boasting about opening cyberlaw practices and
universities have added cyberlaw classes. Why? As the Internet becomes more
commercialized, the culture of the Net is giving way to traditional laws
being applied to the new medium.

** Newspapers **

Title: Times Mirror Assigns Flagship a New Beat
Source: Wall Street Journal
http://wsj.com/ (B4)
Author: Peter Gumbel
Issue: Newspapers
Description: The Times Mirror's flagship paper -- the Los Angeles Times --
is being reorganized by chief executive Mark Willes. The business side of
the LA Times will be organized around editorial sections -- such as sports,
business, and a new section targeting women. The individual sections will
operate "as integrated business units, with their own clearly defined
objectives, including profitability." Journalists inside and outside the
paper are concerned that editorial independence may be sacrificed for
commercial goals.

** Mergers **

Title: ICG Reported Near a Deal For Netcom
Source: New York Times, D4
http://www.nytimes.com/library/cyber/week/101397netcom.html
Author: Seth Schiesel
Issue: Mergers
Description: Netcom On-line Communications Services Inc. is in the final
stages of negotiations to be acquired by ICG Communications Inc. for $250
million in stock. According to company executives, a deal could be
announced as early as today. If Netcom is acquired, it will be the third
major Internet service company to be taken over by a telephone company in
the past year.

Title: Worldcom Fancies Itself Muffler of the Local Bells
Source: New York Times, D5
http://www.nytimes.com/yr/mo/day/news/financial/worldcom-mci.html
Author: Seth Schiesel
Issue: Mergers
Description: Worldcom's chairman, Bernard Ebbers, believes that they are a
better mate for MCI than British Telecom because Worldcom owns local
telephone networks around the US. With MCI and Worldcom's merger, Mr.
Ebbers proposes that they could create the most significant competitor to
the largely unchallenged domain of the five regional Bell companies. Bruce
Roberts, an analyst with SBC Warburg Dillon Read said, "Up until now, there
really hasn't been a very effective competitor nationally against the
regional Bells. But when you take MCI's marketing muscle and its dollars
and its contacts in Congress, and you put that together with Worldcom's
local markets, you bring a much stronger player to the table and you
increase the pressure on state regulators to open local markets."

Title: MCI Close to Opening WorldCom Talks
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Mergers
Description: MCI's board met last Friday to discuss the WorldCom takeover
bid and appears close to opening talks to get more information on the deal.
MCI will take a neutral position as advisors assess the bid over the coming
weeks. MCI's other suitor, British Telecom, has been silent since the bid
was announced a couple of weeks ago. BT realizes that MCI really has no
choice but to review WorldCom's bid.

Title: WorldCom Offer is Difficult Case for MCI to Ignore
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Mergers
Description: The current and future value of WorldCom stock is the
overriding issue for the MCI board. WorldCom's $30 billion bid is mostly in
stock. Since it was founded 14 years ago, WorldCom's stock has been one of
the best-performing in the US. "The challenge will be to keep the valuation
of the stock as high as it is," said Anna-Maria Kovacs, analyst at Janney
Montgomery Scott. WorldCom appears better placed to enter the local phone
market and, "With the Internet assets it already has acquired -- something
that would be greatly enhanced by an MCI acquisition -- WorldCom is well
placed to benefit from any future switch of voice telephony to the Internet."

Title: GTE Would Be In Control If a Merger with AT&T Takes Place
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Mergers
Description: In a defensive response to merger rumors, GTE told telecom
experts last week that because AT&T needs GTE more than GTE needs AT&T, GTE
would control a merged company. There have been reports of two meetings
between the companies about a possible merger.

** Philanthropy **

Title: Can $500 Million Make a Dent?
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/13/060l-101397-idx.html
Author: Rene Sanchez
Issue: Philanthropy
Description: Nearly four years after Walter Annenberg gave $500 million to
help improve the nation's most beleaguered urban public schools, some fear
that the gift has become too tangled in big-city school politics and has
been divided between too many groups to do too many things. There are some
signs of success, but many look at Annenberg's charity as an illustration of
how difficult it is to make progress in urban public education -- even when
armed with half a billion dollars.

** Satellites **

Title: Satellites and the Smaller Picture
Source: Washington Post (WashTech p.17)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/13/042l-101397-idx.html
Author: Peter Behr
Issue: Satellites
Description: Last week, Orbcomm opened a $2 million control center to manage
communications over a network of 28 low-orbiting satellites. Two satellites
are already in orbit with 10 more scheduled to be launched this fall and the
remaining to be placed next year. The network will handle mainly data and
paging transmissions -- the low-budget segment of the rapidly expanding
satellite communications industry.

** Arts **

Title: Study Links Drop in Support To Elitist Attitude in the Arts
Source: New York Times, A1, A15
http://www.nytimes.com/yr/mo/day/news/washpol/nea-funding.html
Author: Judith Miller
Issue: Arts
Description: A new Federal study, titled "American Canvas", says that the
increase in artists and art groups over the past 30 years have far outpaced
the growth of public and private support and cannot be sustained. The
report, prepared by the National Endowment for the Arts, does not cite the
loss of governmental support as being the primary cause for the growing
alienation between the public and the arts. They also emphasize factors
like "the increase of commercialization of American culture, the aging of
audiences, the decline of corporate and private giving, the loss of arts
education in public schools and the attitudes of artists and cultural groups
themselves." The report concludes, "Sad to say, many American citizens fail
to recognize the direct relevance of art to their lives."

** Privacy **

Title: High-Tech Eavesdropping Raises New Questions on Personal Privacy
Source: New York Times, D1, D6
http://www.nytimes.com/yr/mo/day/news/financial/eavesdrop-trial.html
Author: John Markoff
Issue: Privacy
Description: In a Federal trial set to begin tomorrow in CA, it is projected
that questions will be raised in regards to personal privacy rights in this
age of wireless communication. The trial will focus on the trafficking of
eavesdropping equipment and other electronic surveillance technology. This
case relates to concerns by the FBI and Clinton administration that "recent
advances in technology will make it easier for suspected criminals to
protect their phone and computer conversations from law enforcement agents."

Title: Engineer Promotes Computerized Surveillance System
Source: New York Times, D2
http://www.nytimes.com/library/cyber/week/101397patents.html
Author: Teresa Riordan
Issue: Privacy
Description: In an effort to further combat crime, David Aviv, a former
aerospace engineer, has developed a system that feeds images from discreetly
placed cameras into computers programmed to detect criminal acts. His
invention, called "Public Eye", uses pattern recognition to detect malicious
acts. Aviv has digitized and stored into the computers memory a variety of
physical interactions. He said, "We employed actors to do re-enactments of
muggings. We had 10 different sizes of muggers and 10 different sizes of
victims." Every time the computer receives a snapshot, it "compares the
image against the library of threatening interactions." Mr. Aviv also
programmed a type of word recognition program, spoken in different dialects,
into the computer memory to detect aggressive and verbal interactions. In
an attempt to reduce false alarms, the camera sends snapshots to the
computer every fraction of a millisecond. If the computer detects a
criminal act, it sends an alarm to police or a paid guard.
*********
Good-bye Henry John Deutschendorf Jr. (John Denver)

Communications-related Headlines for 10/10/97

Universal Service: Schools and Libraries
FCC: Workshop on Schools and Libraries Application Forms

Telephone Regulation: Pay Phones
WSJ: FCC Revises Rates Companies Must pay On Access-Code
TelecomAM: N.Y. PSC Says Bell Atlantic's Payphone Rate
Stays at 25 cents Until 2002

Internet
WSJ: Copyright Imbroglio Entangles a Work That Web Gave Away
NYT: NBC Expands the TV Model Of Local Affiliates To The Web
NYT: Committees Move Internet One Step Closer To Tax Freedom
NYT: New-Media Pamphleteers Revisit The Roots of the First Amendment

Journalism
WP: On MSNBC,. Sleaze To Please?
WP: CNN Ends Ban On Global Warming Ads
WSJ: CNN Shifts Stance On Advocacy Ads About U.N. Proposal

FCC
TelecomAM: Commissioners Say Good-bye, Little Else, At Open Meeting
FCC: FCC Seeks Comments on Public Safety Communications
FCC: Consumer Information Home Page

Mergers: WorldCom
WSJ: WorldCom's MCI Bid Gets Longer Period For Objections to Deal
TelecomAM: Director's Meeting: MCI Board to Discuss Worldcom Bid Today

Arts
NYT: Italy's Barbed Political Jester, Dario Fo, Wins Nobel Prize
NYT: From Science to Fiction, Military and
Entertainment Industries Swap Expertise

** Universal Service: Schools and Libraries **

Title: Workshop on Schools and Libraries Application Forms
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1997/da972152.html
Issue: Universal Service
Description: Under the Commission's rules, eligible schools and libraries
that request universal service support will be required to complete
application forms.(7) The Common Carrier Bureau and the Schools and
Libraries Corporation will hold a public workshop in order to seek input on
the form and content of the applications, as well as to provide guidance on
how to complete them and to answer questions from the public. The purpose of
this workshop is to discuss the draft applications. For purposes of
discussion, we will provide draft applications; we emphasize that these
drafts should not be used to apply for universal service funding. The
workshop will be held on Friday, October 10, 1997 from 9:00 a.m.-12:00 noon
in the Commission Meeting Room, 1919 M Street, N.W., Room 856, Washington,
D.C. 20554. Interested parties may attend the workshop. The workshop also
will be recorded on video, and copies of the videotape will be available in
the Commission's Reference Room, 1919 M Street, N.W., Room 239, Washington,
D.C. 20554. For further information about this workshop, contact Astrid
Carlson at (202) 418-7369. [For draft forms see
http://www.fcc.gov/formpage.html#470. For more on universal service
provisions for schools and libraries
http://www.benton.org/Updates/summary.html#snl or
http://www.fcc.gov/learnnet]

** Telephone Regulation: Pay Phones **

Title: FCC Revises Rates Companies Must pay On Access-Code
Source: Wall Street Journal
http://wsj.com/ (A4)
Author: Staff Reporter
Issue: Telephone Regulation
Description: The Federal Communications Commission has ordered long distance
companies to reimburse pay phone operators $0.284 for every 800 number or
"dial-around" call placed from a pay phone. An industry analyst said that
the ruling should help pay phone companies -- mostly the Baby Bells -- "get
to the level of profitability that they haven't seen in decades." AT&T
argued that the rate should be much lower.

Title: N.Y. PSC Says Bell Atlantic's Payphone Rate Stays at 25 cents Until 2002
Source: Telecom A.M .--Oct. 10, 1997
http://tpgweb( at )cappubs.com
Issue: Telephone Regulation
Description: Despite the FCC's order to end state regulation of local
payphone rates, N.Y.'s Public Servivce Commission has advised consumers that
the coin rates of all the payphones owned by Bell Atlantic New York will
remain at 25 cents until 2002. Meanwhile, the American Public Comm. Council
attacked MCI's claim that payphone deregulation would be a disaster for
consumers. MCI said that payphone providers efforts to win choice locations
would result in rates as much as $1.50 per call. APCC President Vincent
Sandusky said the deregulation will be a "good thing" by eliminating
subsidies and encouraging payphone owners to offer better features.

** Internet **

Title: Copyright Imbroglio Entangles a Work That Web Gave Away
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Thomas Petzinger
Issue: Intellectual Property/Copyright
Description: "The Front Lines" column focuses on the case of Dr. Abraham
Maslow's 1965 book "Eupsychian Management," the work that introduced the
phrases "synergy" and "enlightened management." The book was out of print
and Dr. Maslow's daughter (Ann Kaplan) acquired the publisher's copyright in
hopes of selling the work for republication. Petzinger had celebrated the
book in this same column a few months ago, so prospects seemed good. But in
1987, Sam Canon received permission from the publisher to make the entire
text available on a local bulletin board network. After getting a legal
opinion that it would be OK, Mr. Cannon transferred the work to the World
Wide Web. But Ms. Kaplan asked and then sued Mr. Cannon to remove it from
the Web. Experts believe that posting entire books on the Web actually
*improves* sales, but Ms Kaplan's suit included statutory damages that could
reach $100,000. In a compromise, Ms. Kaplan dropped the suit in exchange for
Mr. Cannon's promise that he destroy all electronic copies of the book in
his control. Ironically, the new publisher of the book may make it available
online -- to help increase sales.

Title: NBC Expands the TV Model Of Local Affiliates To The Web
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101097nbc.html
Author: Lisa Napoli
Issue: Television/Internet
Description: On Wednesday, NBC executives announced the release of their
"Interactive Neighborhood," "a station centered approach at providing
Internet content." This concept, which is the first of its kind, is designed
to work in conjunction with local NBC affiliates to provide the public with
local and national information about different neighborhoods in the United
States. Other major networks are following suit with CBS planning to unveil
a similar venture in January and ABC with an online operation in the works.
You can access NBC's new site at http://home.nbcin.com/nbcin/home/index.html.

Title: Committees Move Internet One Step Closer To Tax Freedom
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/101097taxfreedom.html
Author: Jeri Clausing
Issue: Internet Regulation/Electronic Commerce
Description: "Three months after President Clinton called for a tax-free
Internet, Congress on Thursday began moving on bills that would impose a
six-year moratorium on local and state taxes targeting the burgeoning global
network." In order to foster continued Internet growth, supporters of the
bill, HR 1054, believe that tax exemption is needed. With over a dozen
states already imposing tolls on Internet commerce, it is feared that many
cities and states will begin to impose varying taxes on Internet
transactions. As stated by W.G. "Billy" Tauzin (R-LA), chairman of the
Commerce subcommittee, "HR 1054 is an attempt to provide a time-out before
states and localities impose their tax structures on the Internet and
Internet users. During this period, states, localities and the federal
government would work in partnership with Internet service providers and
retailers to develop a sound, fair and just taxing mechanism. In the
meanwhile, the bill adequately provides exemptions from its federal
moratorium to ensure that states and localities will not be prevented from
imposing some taxes in certain circumstances." In opposition, a number of
state and local groups, like the National Conference of State Legislatures,
the National Governors Association and the National League of Cities, view
the measure as an intrusion on their taxing authority.

Title: New-Media Pamphleteers Revisit The Roots of the First Amendment
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/nation/101097nation.html
Author: Jason Chervokas and Tom Watson
Issue: Old vs New Media/First Amendment
Description: The First Amendment, drafted during a time of vitriolic
pamphleteering, is being applied to a medium that our fore-fathers
never considered - the World Wide Web. Across the Web there are a few
national, but mostly local, "news" sites popping up. These community news
sites are providing the public with an alternative voice to get their
message and opinions into the public eye. However, on these sites, many
opinions are cited as fact which raises concern over what may be interpreted
by the non-critical reader. "It certainly bothers us, especially when these
extremists can take an objective, legitimate news story and carve it into
whatever form suits their conspiracy-theory-du-jour approach," said Barry
Locher, managing editor of The State Journal-Register, a newspaper published
in Springfield, IL. "It is certainly a violation of copyright as well as a
violation of ethics. But then, I doubt very much if any of these Web
publishers struggle a great deal with questions of journalistic ethics on a
regular basis." When Sherwood Shantz, a web-publisher of news from his
Washington community, was asked whether he considers himself to be a
journalist or a partisan he replied, "As to being a partisan, that would
depend on in what form it is meant. If you mean, do I believe in what I am
doing, and is it right? Yes. Am I a journalist? No. Have I joined the
ranks of journalists? If I have to be able to spell that word to get in, I
would flunk an entrance exam."

** Journalism **

Title: On MSNBC,. Sleaze To Please?
Source: Washington Post (D1)
http://www.washingtonpost.com/wp-srv/WPlate/10/10/
Author: Howard Kurtz
Issue: Television
Description: Much of the TV business is buzzing about the changes at MSNBC,
the show called "The News With Brian Williams" now possessing an
unmistakably tabloid feel with coverage of Princess Diana or Marv Albert on
night after night, along with all manner of violent crime. Insiders
attribute this to ratings pressures."I'm not entirely comfortable with what
passes for news these days," Williams admits. The new emphasis may reflect a
shift at the 15-month-old venture by Microsoft and NBC, whose ratings have
been disappointing. Its "Internight" show was billed as substantive talk,
but often deals with most of today's sensationalistic news stories like
Diana, Marv, and Paula Jones. "There's always ratings pressure," said Mark
Harrington, MSNBC's GM. "You want to get people to watch what you do. We're
losing money here. It's a start-up operation."

Title: CNN Ends Ban On Global Warming Ads
Source: Washington Post (D2)
http://washingtonpost.com/wp-srv/WPlate/10/10/
Author: Howard Kurtz
Issue: Journalism/Advertising
Description: CNN lifted its ban on global warming ads yesterday after
intense criticism. The network reversed the decision they made only last
week. They had canceled an ad campaign by an industry alliance. The decision
assailed a proposed U.N. treaty that would restrict fuel emissions. But, now
CNN spokesman Steve Haworth said, "We have reevaluated our position and
changed it." He said the network would resume airing the spots by the
Global Climate Information Project if the group can substantiate them.

Title: CNN Shifts Stance On Advocacy Ads About U.N. Proposal
Source: Wall Street Journal
http://wsj.com/ (B8)
Author: Sally Goll Beatty
Issue: Journalism/Advertising
Description: In another reversal, the Cable News Network will accept
advocacy ads about the United Nations' global climate-control treaty. CNN is
responding to pressure (including a full-page ad in the WSJ claiming
censorship) after it decided to refuse ads produced and paid for by the
Global Climate Information Project which has criticized the treaty. [Global
warming? they ask. Ever spent a summer in San Francisco?]

** FCC **

Title: Commissioners Say Good-bye, Little Else, At Open Meeting
Source: Telecom A.M.--Oct. 10, 1997
http://www.tpgweb( at )cappubs.com
Issue: FCC
Description: The open meeting the FCC held yesterday saw the departures
of Commissioners Rachel Chong, James Quello, and Chairman Reed Hundt. Hundt,
like the others, only praised his colleagues, including Susan Ness, who will
be the senior commissioner with the incoming freshman. The future plans of
all three are not known. The FCC also adopted an order on reconsideration
modifying its May 7 rules on access charge reform, which reduces the amount
of prescribed interexchange carrier charge assessed on Centrex lines so that
Centrex users will be assessed PICCs in amounts roughly equal to
similar-sized PBX users. [Decipher that news and win the Weekly Wonk prize].
The open meeting also included a Notice of Rulemaking on the wireless
spectrum for emergency services.

Title: FCC Seeks Comments on Public Safety Communications
Source: FCC
http://www.fcc.gov/Bureaus/Wireless/News_Releases/1997/nrwl7043.html
Issue: Regulation
Description: "The FCC adopted a Notice of Proposed Rulemaking designed to
address the Nation's public safety communications needs into the next
century. The Notice makes a range of proposals and seeks comment on a number
of issues relating to public safety communications and priority access to
wireless communications networks in emergencies."

Title: FCC Consumer Information Home Page
Source: FCC
http://www.fcc.gov/Consumers/
Issue: FCC
Description: The FCC Consumer Information Page offers information on various
consumer-related topics. You can reach the Public Service Division by
e-mail, psd( at )fcc.gov, or by phone at 202-418-0190, TTY-888-835-5322.

** Mergers **

Title: WorldCom's MCI Bid Gets Longer Period For Objections to Deal
Source: Wall Street Journal
http://wsj.com/
Author: Staff Reporter
Issue: Mergers
Description: We can't leave you without one last WorldCom story...
The Federal Communications Commission has extended the deadline for
objections to the unusual structure that which WorldCom plans to acquire
MCI. The deadline had been 12 pm today, but MCI's board isn't meeting 'til
today. The FCC established a timetable for objections that will continue
until three days after the WorldCom exchange offer commences. The offer is
expected in 30 days.

Title: Director's Meeting: MCI Board to Discuss Worldcom Bid Today
Source: Telecom A.M.--Oct. 10, 1997
http://www.tpgweb( at )cappubs.com/
Issue: Mergers
Description: Directors of MCI are to meet today to consider Worldcom's
$30 billion takeover bid. There are signs that they may be leaning towards
opening discussions that could lead to a merger. BT, with their initial $24
million bid, has said that they won't comment before MCI's response. MCI is
also considering the new place of strength in Internet communications that
the merger could produce in the form of "voice traffic" migrating to the
'Net. Worldcom has also projected first-year savings of $2.5 billion if the
merger happens, and $5 billion by the fifth. Meanwhile, shares in U.S.
telecom companies most likely to follow Worldcom's example of
merger/acquisition continue to rise, like AT&T and GTE.

** Arts **

Title: Italy's Barbed Political Jester, Dario Fo, Wins Nobel Prize
Source: New York Times, A1, A10
http://www.nytimes.com/yr/mo/day/news/arts/nobel-literature.html
Author: Celestine Bohlen
Issue: Arts
Description: Dario Fo, the Italian playwright-performer known for his
subversive satire, was awarded the Nobel Prize in Literature yesterday.
This prize to Mr. Fo is among the most controversial and unexpected in the
97 year history of the award drawing guarded amazement from Italy's literary
establishment and outright dismay from the Vatican. In its announcement,
the Swedish Academy likened Fo to the "'jesters of the Middle Ages' who rely
on wit, irreverence and even slapstick humor to poke fun at authority while
'upholding the dignity of the downtrodden'. With a blend of laughter and
gravity, he opens our eyes to abuses and injustices in society and also the
wider historical perspective in which they can be placed. Fo is an
extremely serious satirist with a multifaceted oeuvre."

Title: From Science to Fiction, Military and Entertainment Industries Swap
Expertise
Source: New York Times, C1
http://www.nytimes.com/library/cyber/week/101097sfx.html
Author: Andrew Pollack
Issue: (That's) Entertainment
Description: Rocket Scientists are heading to the movies in more than one
way. Outside of catching an occasional weekend flick, a few of NASA's
engineers are trading in their lab keys for work in the digital
entertainment domain. With the sharp cut-backs in military spending, some
aerospace companies and engineers are now applying their expertise to
developing special effects for movies, theme park rides, casinos and
shopping centers. "The National Research Council issued a report last month
saying that the entertainment and defense industries share many technologies
related to computer models and simulation and could benefit from greater
cooperation." While there may be similarities between these two industries,
there are still stark differences - especially in the corporate culture.
"Even though the technology may be the same, the way the technology is used
is so different," said Eric Haseltine, who used to work for Hughes
Electronic and now heads projects developing virtual reality attractions at
Disney. "One is about storytelling and emotion, and the other is about
killing people." [Which usually end the story and the emotion right there].
It appears that the Pentagon may also be climbing on board
as they look to the entertainment industry for low-cost technology and
wonder whether military simulators can be based on similar casino
attractions. [When asked his opinion, top gun pilot Tom Cruise...]
*********
Swooooosh! We're outta here. See ya Monday.

Communications-related Headlines for 10/9/97

Public Broadcasting
WP: Justices Question Barring Fringe Candidates From Debates on
Public TV
WP: Public Broadcasting Close to Getting More U.S. Funds
Current: Coonrad, new president at CPB,
a diplomat by career and style
Current: Sought: 45% of DTV cost
Current: PTFP to help add 1.1 million people to radio coverage
Current: Lucky to get reserved spectrum,
we may now have to work to keep it

Infrastructure
WSJ: Putting Telecom Services on Power Lines Could
Spark Internet Usage in Europe
NYT: Electric Utility Announces Net Access Through Power Lines
WP: Fast Forerunner to a New Internet?

Internet Regulation
NYT: 'Luring' Law Wins Support of Advocates Of Free Speech
and Foes of Child Porn
WP: Hill's Use of Domain Fund For Internet2 Is Protested

FCC:
TelecomAM: Commerce Committee Gives a Half-Hearted "Aye" to FCC Nominees

Encryption
NYT: Europeans Reject U.S. Plan On Electronic Cryptography
NYT: U.S. Official Says Clinton Wants
Market-Driven Encryption Policy

Arts
NYT: Arts Head Attacks Critics
WP: Out of the Fire and Back Into the Spotlight
NYT: Honorable Fatigue

Lifestyles!
NYT: Microsoft to Test European Internet Mall
NYT: Old Foods Make a New Comeback

** Public Broadcasting **

Title: Justices Question Barring Fringe Candidates From Debates on Public TV
Source: Washington Post (A15)
http://www.washingtonpost.com/wp-srv/WPlate/10/09/2281-100997-idx.html
Author: Joan Biskupic
Issue: Public Broadcasting
Description: Supreme Court justices expressed skepticism over whether or
not public TV has the right to exclude candidates from televised debates who
are on the ballot, but only at the fringes. Arguments pit broadcasters'
interest in journalistic integrity and editorial control against an
independent party candidate's First Amendment right to political speech.
Public TV stations are generally free to decide what candidates to include
in their debates. Justice Antonin Scalia said this to a lawyer for a
state-run TV network, "There are some things that private broadcasters can
do and you cannot." Exclusion of third-party candidates may be one of those
things. A high court ruling against the stations could increase public
exposure for marginal candidates or cause some station to abandon the debates.

Title: Public Broadcasting Close to Getting More U.S. Funds
Source: Washington Post (E1)
http://washingtonpost.com/wp-srv/WPlate/10/09/0871-100997-idx.html
Author: Paul Farhi
Issue: Broadcasting Budget Issues
Description: Lawmakers have budgeted about $300 million in taxpayer
support for the Corp. for Public Broadcasting or fiscal year 2000. This
would be a
20% increase from the previous year and the first hike after 5 years of
declining gov't support. If the appropriation becomes a law, it would also
mark a huge political comeback for public radio and TV. Public broadcasting
officials and congressional aides agree that efforts to wipe out PB's
funding underestimated the grass-roots backing for public stations. "The
American people expressed their very strong support for public broadcasting
and we got the message loud and clear," said Rep. John Edward Porter (R-Ill.),
who chairs the House subcommittee that oversees CPB's funding. Also, Rep.
W.J. "Billy" Tauzin is preparing a multimillion-dollar trust fund for public
broadcasters.

Title: Coonrad, new president at CPB, a diplomat by career and style
Source: Current, the Public Telecommunications Newspaper
http://www.current.org/ (p.1)
Author: Steve Behrens
Issue: Public Broadcasting
Description: The Corporation for Public Broadcasting has chosen Robert
Coonrad as its president. Mr. Coonrad was a foreign service officer for 25
years and was deputy director of the Voice of America under Richard Carlson.
After Mr. Carlson became the president of CPB, Mr. Coonrad soon followed and
became acting president when Mr. Carlson resigned in April.

Title: Sought: 45% of DTV cost
Source: Current, the Public Telecommunications Newspaper
http://www.current.org/ (p.1)
Issue: Digital TV
Description: Public broadcasting estimates it will cost $1.7 billion for it
to convert to digital television and radio. Public broadcasting is
negotiating with the Clinton Administration and congressional offices,
seeking $771 million for the transition. David Liroff, spokesman for the
field's joint Digital Broadcasting Strategic Planning Steering Committee,
says, "We will raise the rest. It seemed realistic to assume that public
broadcasting was going to have to at least match and maybe
a-little-more-than-match what it is asking the federal government to
appropriate." Most of the money would go to the transition to digital
television and the funds would be dispersed by either the CPB or the Public
Telecommunications Facilities Program, an ongoing grant-giving office in the
Department of Commerce.

Title: PTFP to help add 1.1 million people to radio coverage
Source: Current, the Public Telecommunications Newspaper
http://www.current.org/ (p.7)
Issue: Radio/Public Broadcasting
Description: The National Telecommunications and Information
Administration's Public Telecommunications Facilities Program announced last
month aid to 97 stations and educational institutions. The grants total
$14.2 million including matching grants for three new public radio stations
and other improvements. The grants will help expand public radio's potential
audience by 1.1 million people.

Title: Lucky to get reserved spectrum, we may now have to work to keep it
Source: Current, the Public Telecommunications Newspaper
http://www.current.org/ (p.25)
Author: Ron Kramer, executive director Jefferson Public Radio
Issue: Spectrum/Public Broadcasting
Description: An editorial by a public broadcaster on the history of spectrum
reservations for noncommercial educational stations. The recent auction of
WDCU, a public radio station in Washington, DC, raises a host of issues that
pubcasters and the FCC should begin to address. "I believe it is time for
public broadcasters to actively work to preserve the reserved spectrum for
its intended uses by sharpening the policy distinctions between
noncommercial and commercial broadcasting, by prosecuting our case for the
continuing reservation of spectrum/capacity in emerging media technologies
and by gathering data on religious super-stations and networks across the
country."

** Infrastructure **

Title: Putting Telecom Services on Power Lines Could Spark Internet Usage
in Europe
Source: Wall Street Journal
http://wsj.com/ (B21)
Author: Gautam Naik
Issue: Infrastructure
Description: Scientists working for United Utilities and Northern Telecom
announced this week that they have found a way to provide high-speed
telecommunications services over existing electric power lines. This could
be a great boon for Internet access in Europe where Net penetration has been
slowed by the high costs of connecting through national phone monopolies.
The new technology offers Internet access at speeds 20x faster than the
highest speed modems and 10x faster than ISDN.

Title: Electric Utility Announces Net Access Through Power Lines
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/100997powerlines.html
Author: Chris Allbritton
Issue: Internet
Description: The British utility company, United Utilities PLC, and Canadian
telecommunications firm, Northern Telecom Ltd., announced yesterday that
they plan to provide a new technology that will offer high-speed Internet
access to British homes through power lines. This technology would
provide data at about 1 megabit per second, almost ten times the speed of
the fastest connections currently available to home-users.

Title: Fast Forerunner to a New Internet?
Source: Washington Post (E1)
http://www.washingtonpost.com/wp-srv/WPlate/10/09/1291-100997-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet
Description: "Internet2" is a collaborative effort among U.S. research
universities, the Nat'l Science Foundation and several technology companies
to get around the traffic jams and speed limits on today's commercial
Internet by creating an ultra-fast, members-only network. In experimental
service
at 12 universities, it allows users to send and receive data
as much as 100 times faster than on the normal Internet. The most
significant development will be the ability to send very large files over
the 'Net at real-time speeds. Started a year ago with 34 member
universities, the project now has 112 educational institutions that have
invested more than $50 million into the network. There are estimates that
about 30 institutions will be online by next year. "Today's Internet doesn't
work as well as we need it to for world-class research," said Douglas E. Van
Houweling, Internet2's new chief exec. "That's partly because of the way the
network was built and partly because everybody is using it."

** Internet Regulation **

Title: 'Luring' Law Wins Support of Advocates Of Free Speech
and Foes of Child Porn
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/law/100997law.html
Author: Carl S. Kaplan
Issue: Internet Regulation
Description: Over the past several months, laws restricting the
dissemination of smut on the Internet have not fared well in both federal
and state courts. But one law that continues to draw a large amount of
support both in and outside of the court system is New York Penal Law
235.22. Effective November 1, 1996, and successfully upheld for the first
time in an indictment last week in Brooklyn, this statute makes it a crime
to disseminate indecent material online to minors for the specific purpose
of inducing them to engage in sexual acts. J. Robert Flores, senior counsel
to The National Law Center for Children and Families, a Virginia-based group
that seeks to protect children from sexual exploitation, says that "This law
makes a lot of sense. It strikes a balance between free expression on the
Internet and the protection of minors." Ann Beeson, staff lawyer for the
American Civil Liberties Union and frequent opponent of the National Law
Center for Children and Families, agrees that "the luring law is not
constitutionally invalid." The ACLU accepts the statute because it is
"narrowly aimed at preventing criminal solicitations and does not represent
a broad attack on protected expression." According to the ACLU two other
states besides New York have passed similar luring laws.

Title: Hill's Use of Domain Fund For Internet2 Is Protested
Source: Washington Post (E1)
Author: Rajiv Chandrasekaran
http://www.washingotonpost.com/wp-srv/WPlate/10/09/0851-100997-idx.html
Issue: Internet
Description: The decision the House made to draw a $23 million fund for
development of a "next generation" Internet enraged some Internet activists
and several officials at the Nat'l Science Foundation. They contend that the
fund should be used to improve today's Internet, not "Internet2", a Clinton
administration-backed project to connect federal labs and universities with
a network 1,000 times faster than the current Internet. "This is a breach of
trust with the Internet community," said an unidentified NSF official. "The
people whose fees went into the fund aren't going to see a return from the
[Next Generation Internet] for at least half a decade." But other Internet
leaders say the new 'Net is exactly what the fund was intended for. Anthony
M. Rutkowski, a former exec. director of the Internet Society, said, "It
sounds like a very useful way to spend the money, to develop a new set of
advanced technologies."

** FCC **

Title: Commerce Committee Gives a Half-Hearted "Aye" to FCC Nominees
Source: Telecom A.M.--Oct. 9, 1997
http://www.tpgweb( at )cappubs.com
Issue: FCC
Description: The Sen. Commerce Committee endorsed all 4 nominees to the
FCC, but comments made prior to voting indicate lingering reservations. For
example, Sen. Hutchinson, R-Texas, refused to support nominee Gloria
Tristani because she felt that her written response to some questions
weren't deferent to state and local governments. Hutchinson approved of all
nominees in the voice vote, though. Sen. Stevens, R-Alaska, refused to
vote for any of them, saying he was "disturbed" by all of their
philosophies. "I don't believe any of the nominees appreciate the
importance of universal service," Stevens said. He singled out Bill Kennard
because he feels Kennard has no respect for Congressional authority. The
vote goes to the full Senate, which should consider the nominees in the next
few weeks.

** Encryption **

Title: Europeans Reject U.S. Plan On Electronic Cryptography
Source: New York Times, D4
http://www.nytimes.com/library/cyber/week/100997encrypt-side.html
Author: Edmund L. Andrews
Issue: Encryption
Description: In a report released today, the European Commission "rejected
proposals by the United States aimed at insuring that police agencies can
crack coded messages over telephone and computer networks." They stated
that in addition to the American approach being possibly ineffective, it
could "threaten privacy and stifle the growth of electronic commerce. The
U.S. officials did not disguise their disappointment, and challenged the
Europeans to come up with better alternatives."

Title: U.S. Official Says Clinton Wants Market-Driven Encryption Policy
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/100997encrypt.html
Author: Jeri Clausing
Issue: Encryption
Description: In a forum yesterday on computer encryption, William Reinsch,
Assistant Commerce Secretary, said that the Clinton Administration wants a
market-driven system for key recovery of scrambled computer files as opposed
to a mandatory system. "To facilitate that goal," Reinsch said, "the
government will begin purchasing new software and hardware that will
communicate only with other key-recovery systems -- that is, with systems
that allow the police a key to unscramble encrypted files." His statements
drew criticism from the forum's audience, which consisted primarily of
computer, software and business interests, who questioned "whether the
government should be using tax dollars to force unwanted technology and a
'de facto standard' on the rest of the world." In reaction to criticism,
Mr. Reinsch stated that "We see companies wanting to engage in a
key-recovery framework for their own security reasons. We see the market
going in that direction anyway. What we have tried to do is devise a set of
policies that facilitate that movement." He added, "If private parties
want, they can ignore key recovery -- unless they want to communicate with
us in an encrypted fashion."

** Arts **

Title: Arts Head Attacks Critics
Source: New York Times, A16
http://www.nytimes.com
Author: Judith Miller
Issue: Arts
Description: Jane Alexander yesterday confirmed that she would resign as the
chairman of the National Endowment for the Arts by the end of the month. In
an interview, she lashed out at Congressional critics who have cut the
agency's governmental funding in half during her four year tenure. She
contends that the majority of the NEA's critics were attempting to
capitalize on public outrage over a minuscule number of controversial
projects that received Federal support. Ms. Alexander points out that "it
was a case of: 'I can get points for trashing the NEA; I get points from the
people who give away money for trashing the NEA; I can get headlines and air
time for trashing the NEA." In addition to their response to a few
controversial grants, Congress also eliminated funding for most individual
artists, except for writers. When asked why she was resigning, she said, in
part, to return to acting. Alexander has given several recommendations for
a successor to the White House.

Title: Out of the Fire and Back Into the Spotlight
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/10/09/1901-100997-idx.html
Author: Jaqueline Trescott
Issue: Arts
Description: Jane Alexander, the departing chief of the NEA, reassessed
her role in the endowment's past, and feels good about its future, despite
the many battles she fought with them over money, morality, integrity,
obstinate conservatives like House Speaker Newt Gingrich, and artists. "She
was placed in a no-win situation of trying to forge compromises that would
placate the attack forces...and not disturb the needs of the arts
community," said Robert Lynch, president of Americans for the Arts.

Title: Honorable Fatigue
Source: New York Times, A38
http://www.nytimes.com/yr/mo/day/editorial/index.map?77,105
Author: New York Times Editorial Staff
Issue: Arts
Description: It is no wonder that Jane Alexander is giving up her position
as chairman of the National Endowment for the Arts given all she has had to
endure to ensure that the NEA will continue to exist. It is quite a tribute
to Ms. Alexander's leadership and commitment that Congress has not
completely dismantle the NEA. When the National Foundation on the Arts and
the Humanities Act was passed in 1965, it stated "While no government, can
call a great artist or scholar into existence, it is necessary and
appropriate for the Federal Government to help create and sustain not only a
climate encouraging freedom of thought, imagination, and inquiry, but also
the material conditions facilitating the release of this creative talent."
This statement remained as part of the NEA's mission statement until 1995
where it gave way to a more recent version which states that the Endowment's
mission is "to foster the excellence, diversity and vitality of the arts in
the United States, and to broaden public access to the arts." Now there is
talk of "allowing" the NEA to privatize itself. "This may work for the
helium reserve, which President Clinton has recently agreed to privatize,
but it cannot work for the reserves of thought and imagination - the
foundation of free speech - whose protection is a public matter."

** Lifestyles! **

Title: Microsoft to Test European Internet Mall
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/100997microsoft.html
Author: Martin Nisenholtz
Issue: Internet Lifestyles
Description: Holiday shopping already? You didn't think we would let you
down with Halloween just around the corner. Microsoft says it will create
an Internet shopping mall with retailers in eight countries. They say this
experiment is being conducted with hopes of increasing electronic commerce
and Internet use in Europe. The electronic mall, dubbed E-Christmas, will
debut on November 4. According to John Leftwich, Microsoft's vice-president
for corporate marketing in Europe, he predicts that 70 to 150 retailers will
participate in this test that will run for four months.

Title: Old Foods Make a New Comeback
Source: NewsoyTimes
http://soy.com
Author: Reggie Tarian
Issue: Lifestyles
Description: People nationwide are calling out for fastfood chains to begin
carrying the latest growing rage: tofu-burgers. Tofu, which was first used
in China around 200 BC became lost through the ages but it is now making a
comeback with its miraculous ability to soak up any flavor that is added to
it. Loved by many, Kevin Taglang especially, school lunch programs also are
considering carrying the delicious ancient food. [How did this get in the
paper without some P-Chip warning label?]
*********

Communications-related Headlines for 10/8/97

Arts
NYT: Alexander Plans to Resign As Leader of Arts Agency

Mergers: A New Biggest Deal of All Time
NYT: AT&T Talking to GTE About Teaming Up, Executives Say

Competition
TelecomAM: Consumer Group Blasts BOCs for Lack Of Local Competition

Universal Service
TelecomAM: FCC Rules States Can Impose Universal Service Assessments
on Wireless Firm

Internet
WSJ: Firms File Suits Over Internet Addresses

** Arts **

Title: Alexander Plans to Resign As Leader of Arts Agency
Source: New York Times (A12)
http://www.nytimes.com/yr/mo/day/news/arts/nea-alexander.html
Author: Judith Miller
Issue: Arts
Description: Jane Alexander, chairwoman of the National Endowment for the
Arts, may resign after Congress approves appropriations for the agency.
Reportedly, Ms. Alexander plans to resume her acting career. Although she
made the decision about a month ago, Ms. Alexander has told only friends and
the White House for fear that her resignation may prompt a fresh assault on
the agency's budget [which seems like an excellent reason for the NYT and
Headlines to cover it now, before approval]. Ms. Alexander has seen the NEA
through its most difficult period, battling the religious right (which says
the agency gives taxpayers money to attack religion and produce pornography)
as well as the left (which says the agency's grants are too restrictive).
[So how well did Alec Baldwin's last movie do?]

** Mergers **

Title: AT&T Talking to GTE About Teaming Up, Executives Say
Source: New York Times (D1)
http://www.nytimes.com/yr/mo/day/news/financial/att-gte.html
Author: Seth Schiesel
Issue: Mergers
Description: Another day, another possible "biggest deal of all time." AT&T
and GTE are reportedly in merger talks -- a possible deal is valued at $48
billion (dwarfing WorldCom's $30 billion bid for MCI). AT&T is seeking a
partner that can help its "torpid local telephone strategy." GTE would be
AT&T's third choice after talks with BellSouth and SBC fell apart. AT&T is
also seeking an executive to succeed CEO Robert Allen and GTE's Charles Lee
could fill that slot. GTE offers local and long distance telephone service
in 29 states.

** Competition **

Title: Consumer Group Blasts BOCs for Lack Of Local Competition
Source: Telecom A.M.--Oct. 7, 1997
http://www.tpgweb( at )cappubs.com
Issue: Competition
Description: The Americans For Competitive Telecommunications (ACT) is
blasting Bell Operating Companies (BOCs) for a lack in competition in the
local service market. In a report issued by ACT, it stated, "No BOC in any
state, from California to Michigan to Florida, has fully complied with the
Telecommunications Act of 1996 and no real competition exists for consumers
in any local market." ACT's solution to the "monopoly over local markets" is
more federal regulation. Mark Phigler, president of Calif.-based ACT, said,
"Obviously, the trend has been to return authority to the state level, but
it isn't going anywhere. There will never be any real competition in the
residential local market unless the rates for resale and unbundling reach
levels that open the market up to a lot of players. That's more likely to
happen with regulation coming from the federal level, than from states."

** Universal Service **

Title: FCC Rules States Can Impose Universal Service Assessments on
Wireless Firm
Source: Telecom A.M.--Oct. 7, 1997
http://www.tpgweb( at )cappubs.com
Issue: Universal Service
Description: The FCC has determined that the 1993 law prohibiting states
from regulating rates and market entry of wireless phone services doesn't
bar state legislature from requiring that these services contribute
financially to support state universal service programs. Pittencrieff
Communications brought a petition to preempt the provision of Texas' Public
Utility Regulatory Act, citing the law as a state barrier to wireless market
entry and discriminated against wireless providers. The FCC said that the
Texas provision doesn't create a direct barrier to wireless service entry,
but has requirements that Congress intended to include within other terms
and condition of service.

** Internet **

Title: Firms File Suits Over Internet Addresses
Source: Wall Street Journal
http://wsj.com/ ((B17)
Author: Ann Davis
Issue: Internet
Description: Businesses are dismayed to learn that under new policies
governing Internet domain names, they have to file lawsuits -- often in
federal court -- to defend their "virtual turf." Michael Dever has to take
Sprint to court because Network Solutions Inc revoked his domain name
"spree.com" Mr. Dever runs an online shopping mall at this address, but
Sprint has a trademark for the "Spree Prepaid Foncard" and was convinced
consumers would confuse the online mall and Sprint products. NSI's policy is
to put a domain name on temporary hold if a valid trademark owner challenges
the name. If the current owner has a valid trademark, they get to keep the
name, but will lose it if they don't.

** FCC **

Title: Collegiality Replacing Confrontation at FCC
Source: Washington Post (C13)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/08/0541-100897-idx.html
Author: Mike Mills
Issue: FCC
Description: William E. Kennard, general counsel of the FCC, is set to
replace Reed E. Hundt as chairman. Kennard's style has been noted
in comparison with his predecessor. Richard Wiley, who was FCC chairman from
1974 to 1977, said, "He'll get along a lot better with his colleagues. It
will be a lot kinder, gentler, more collegial environment than it is right
now." Kennard has 15 years of experience in Washington's realm of
telecommunications policy, and is said to be a consensus-builder, a top-notch
litigator and dedicated civil servant. He would also be the first
African-American to run the FCC. Toni Cook-Bush, a longtime friend of
Kennard's who lobbies the agency for a local firm, said, "When people meet
with him, they feel they get a fair hearing. He's not one to rush to
judgement, where you feel like it was a waste of time to go see him."
*********

Communications-related Headlines for 10/7/97

Education Technology
USAToday: School Computers, Tools or Toys?
USAToday: Kids Need Modern Tools

Television
NTIA: Advisory Committee on Public Interest
Obligations of Digital Television Broadcasters
NYT: NBC and some powerful politicians square off
over the new ratings system
WSJ: Wal-Mart Uses TV-Set Displays For Ad Network

Cable
NYT: In Some Towns, Folks Just Say No To Cable Companies

Payphone
WSJ: Pay-Phone Operators Ring In Deregulated Era Today
WP: Pay Phone Companies Allowed to Raise Prices

Internet
WSJ: Electric Outlets Could Be Link To the Internet
WSJ: GTE Says Baby Bells, Netscape, Yahoo! Formed Internet
Yellow Pages Cartel
NYT: GTE Sues Netscape and Yahoo Over Internet Yellow Pages Access
WP: A Pressing Matter of Addressing: Who'll Decide Domains?
WP: The New Economy: Microsoft

Privacy
WP: Our Data, Our Rights
NYT: Clinton's Top Internet Advisor Says Encryption Policy Is Unformed

Ownership
WP: Straight Angle

Arts
WP: Positive Power of Writing

InfoTech
WP: How Much Technology is too much?

Anne Wells Branscomb

** Education Technology **

Title: School Computers, Tools or Toys?
Source: USA Today
http://www.usatoday.com/news/comment/nceditf.htm
Author: USA Today Editorial Staff
Issue: Education Technology
Description: Many view computers as a quick fix to our school systems
ailments. But unfortunately, not enough research is being done on how to
best use this new technology to improve learning. In order for school
systems to effectively harness communication and computer technology, the
teachers need to be trained in how to turn computers into more effective
classroom tools and curricula needs to be developed that compliments new
technological advancements. "Until more money is hot-wired for training,
the massive investment in school computers will continue to provide
disappointing returns."

Title: Kids Need Modern Tools
Source: USA Today
http://www.usatoday.com/news/comment/ncoppf.htm
Author: FCC Chairman Reed Hundt
Issue: Education Technology
Description: As we move into the 21st century, one of the great needs of our
business world is a workforce who has communication and computer technology
skills. Yet in our nations school systems, almost 90 percent of our
children have no practical access to computer communication networks. In
order for children to succeed in the 21st century economy they need to get
their hands on the tools of today. "My view is that our national commitment
to connect every classroom in every school in the country to the Internet
will be our single greatest advance in quality and equality of education in
this century."

** Television **

Title: Advisory Committee on Public Interest Obligations of Digital
Television Broadcasters
Source: NTIA
http://www.ntia.doc.gov/pubintadvcom/froct7.htm
Issue: Digital TV
Description: The Federal Register notice of the first meeting of the
Advisory Committee on Public Interest Obligations of Digital Television
Broadcasters has been released. The meeting will take place October 22-23 in
Washington, DC. The President established the Advisory Committee to advise
the Vice President on the public interest obligations of digital
broadcasters. The Committee will study and recommend which public interest
obligations should accompany broadcasters' receipt of digital television
licenses. The President designated the National Telecommunications and
Information Administration to provide secretariat services for the
Committee. [See the Committee's homepage at
http://www.ntia.doc.gov/pubintadvcom/pubint.htm and additional information
on the future of television at http://www.benton.org/Policy/TV/]

Title: NBC and some powerful politicians square off
over the new ratings system
Source: New York Times
Author: Lawrie Mifflin
Issue: V-Chip
Description: NBC and Sen. John McCain (R-AZ) are at odds over the new
television ratings system. While most tv networks began to use the
additional letters in their rating system last week, NBC has refused to do
so. Their refusal is based on their question of whether there will be "a
noticeable difference" between the new system and the one they currently
use. At this time NBC uses the "age group icons, supplemented by
full-sentence advisories (visual and audio) at the start of some shows."
Robert C. Wright, NBC's president, says "At this juncture, we feel strongly
that the additional labels merely add to parents' confusion." In response,
McCain states that "there are many families who want to know about the
content of shows, and want to use the V-chip to monitor what they watch."
Regardless of whether or not NBC's ratings system is less confusing, "they
would not be able to set off the V-chip, or electronic blocking device, which
is the reason for creating a ratings system in the first place." [For more
information on the V-Chip see http://www.benton.org/Policy/TV/#vchip and
http://www.fcc.gov/vchip/]

Title: Wal-Mart Uses TV-Set Displays For Ad Network
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Yumiko Ono
Issue: Advertising
Description: Wal-Mart has come up with a use for all those televisions in
their 1,950 stores nationwide: the Wal-Mart Television Network. The retail
giant estimates that 30 million people per week wander through their
electronic section -- so they're guessing they'll draw 20 million attentive
viewers a month to the network (hey, that's better than ABC is doing with
the yellow ad campaign, isn't it?). Programming will point shoppers to all
the wonderful stuff on sale in the store. The move mirrors other efforts to
bombard people with advertising -- in doctors' offices, health clubs,
video-rental and auto-parts stores, airports, and even some 7-11's.

** Cable **

Title: In Some Towns, Folks Just Say No To Cable Companies
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/100497cable.html
Author: Barnaby J. Feder
Issue: Cable Industry
Description: In a growing number of communities across the United States,
residents are encouraging their municipal utilities to
engage in competition with the private sector. Residents are encouraging
utility officials to start with the cable industry due to the industry's
rising rates, lack of control over local programming and slow pace at
upgrading networks. Members of smaller communities also are concerned about
their ability to obtain easy access to the Internet and other technological
advances. In addition to offering community members better cable and
communications services, municipalities are hoping to spur local economic
growth. In reaction to this new competition, cable companies have started
to cut rates and improve local service.

** Payphones **

Title: Pay-Phone Operators Ring In Deregulated Era Today
Source: Wall Street Journal
http://wsj.com/ (B4)
Author: Barbara Martinez
Issue: Telephone Regulation
Description: Pay-phone operators have been looking forward to this day as
the Federal Communications Commission has decided to "deregulate and
detariff" the service. In states that have already experimented with this, a
local phone call has risen from $0.25 to $0.35. Waiting in the wings are
decisions from the FCC on how much pay phone operators should be compensated
for calls to 800 numbers and dial-around services.

Title: Pay Phone Companies Allowed to Raise Prices
Source: Washington Post (D3)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/07/0881-100797-idx.html
Author: Mike Mills
Issue: Telephone Regulation
Description: Starting today, a new law will allow pay phone companies to
charge whatever they please for coin-operated local calls. It also allows
them to charge by the minute for local calls, something that was previously
banned. Pay phone companies argue that the $4 billion industry has
become competitive, with pay phones being operated by 2,000 independent
companies. Owners of facilities in which phones are installed can also
influence rates. Bell Atlantic Corp., which operates most of D.C.'s pay
phones has "no announcement to make as of tomorrow when the regulations
change," said spokesman Jim Smith. "We're in the process of analyzing the
very complex markets we serve."

** Internet **

Title: Electric Outlets Could Be Link To the Internet
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Guatam Naik
Issue: Infrastructure
Description: Engineers claim they have developed technology that would allow
people to make phone calls and access the Internet at high sppeds through
the electrical outlets in walls. (How fast? Like the speed of light, man).
If the technology developed by United Utilities PLC and Northern Telecom Ltd
is successful, it would transform the world's power lines into major
conduits on the information superhighway and give electrical companies easy
entree into the phone and Internet access business. The companies believe
the technology is "ready for mass market" and will announce plans at a press
conference tomorrow. "At long last, the local monopoly of the incumbent
telecom operators is about to be demolished," said a spokesman.

Title: GTE Says Baby Bells, Netscape, Yahoo! Formed Internet Yellow Pages
Cartel
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Jared Sandberg
Issue: Internet
Description: GTE is claiming that the Baby Bells (Bell Atlantic, BellSouth,
Ameritech, US West, and SBC), Netscape and Yahoo! are in "a conspiracy to
capture, control, and dominate the Internet Yellow Pages market." In a suit
filed against the companies in US District Court in Washington, DC, GTE
claims that the five Bells agreed not to compete against each other with
national Internet Yellow Pages -- opting instead to divide the nation into
their specific regions. GTE runs its own service called Superpages.

Title: GTE Sues Netscape and Yahoo Over Internet Yellow Pages Access
Source: New York Times, D10
http://www.nytimes.com/yr/mo/day/news/financial/gte-internet-suit.html
Author: Steve Lohr
Issue: Internet
Description: The GTE Corporation filed an anti-trust suit against five
regional Bell telephone companies, Netscape Communications and Yahoo Inc.
yesterday accusing them of conspiring to limit competition in the market of
on-line yellow pages. GTE contends that the Bell companies pulled together
their resources for an exclusive contract with Netscape, whose reference
section is prepared by Yahoo. Before the contract, GTE, along with other
companies, had been included in the choices offered in Nets cape's reference
section. But as of July 18, the access to GTE's online yellow pages was
cut-off, "denying the Corporation access to one of the most heavily
trafficked locations on the Internet." Geoff Potter, a spokesman for one of
the Bell companies responded that the case was "without merit", "The notion
that any 1, 2 or 10 companies could monopolize the Internet is absurd on its
face." While this dispute raises questions about the "legal ground rules
covering the sale of 'real estate' on the web, analysts and anti-trusts
experts say GTE may have a difficult time proving its case."

Title: A Pressing Matter of Addressing: Who'll Decide Domains?
Source: Washington Post (D1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/07/0771-100797-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Regulation
Description: The Internet Society of Reston, VA thinks that the process
of doling out addresses on the 'Net should be opened to competition. This
process is now largely controlled by Network Solutions, Inc. of Herndon, VA.
The society's chief exec, Donald Heath, has been advocating a global
approach to the global computer network. He has proposed adding new
suffixes like ".store" for retailers, and ".arts" for cultural groups. Under
the committee's new plan, the new and existing addresses would be handed out
by several competing firms. The process would be administered by an
internat'l committee incorporated in Switzerland. Opposition to the Internet
Society's plan say it was conceived without enough public input and places
too much power in the hands of the Internet Society, a nonprofit group of
Internet
technologists and enthusiasts.

Title: The New Economy: Microsoft
Source: Washington Post (A17)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/07/0171-100797-idx.html
Author: James K. Glassman
Issue: Internet: Economics
Description: What can be called the "New Economy" can be partly
attributed to what gov't dictates have done such as spreading free trade and
deregulating the transportation and communications industries. This has been
especially good for Microsoft, whose profits are now $3.4 billion on $11.4
billion in sales. The company has no debt and is sitting on $9 billion in
cash. The evidence of this "New Economy" can also be seen at Microsoft Corp.
itself. The culture emphasizes brainpower, flexibility, youth, hard work,
and a closeness to the customer (that's why they like to keep you on the
phone so long for support). The Microsoft Corp. culture is one that can
easily adapt to all of the rapid changes in technology. "We have directions
we're going in," says Mike Murray, the head of Microsoft's HR dept. "but
beyond that, things are constantly changing, you're always making course
corrections." Flexibility being the advantage of this company, Microsoft is
continually exploring new applications: satellites, cable TV, intranets,
voice-recognition technology, 3-D graphics, etc. They'll be spending $2
billion on research and development this year, most of it on basic research
with unknown applications.

** Privacy **

Title: Our Data, Our Rights
Source: Washington Post (A17)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/07/0151-100797-idx.html
Author: James B. Rule
Issue: Privacy
Description: We now live in a world where personal information on
"private" citizens has become a commodity for daily use in insurance sales,
aggressive marketing, credit allocation, and civil litigation. The worst
part is that personal data are subject to control by everyone but the person
depicted. For example, prescription data disclosed to pharmacists may be
"stripped" in the course of transmission to third-party payers, and thus
captured for marketing purposes. This is a classic situation where law has
failed to catch up social and technological reality. A basic legal
innovation could solve this problem: new legislation should require that no
sale or trade of personal data for any commercial purpose would be legal
without the expressed permission from the person concerned. Authorization
could also be revocable, and without it there should be the strictest of
confidentiality.

Title: Clinton's Top Internet Advisor Says Encryption Policy Is Unformed
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/100797encrypt.html
Author: Martin Nisenholtz
Issue: Encryption
Description: Ira Magaziner, President Clinton's top internet advisor,
acknowledged yesterday that the administration lacked a firm position on the
issue of encryption when he told attendants at the High Tech Forum that "We
don't have a position." In response to Clinton's recent support of a bill
"that would allow U.S. law enforcement agencies access to coded messages"
Magaziner expressed hope that "we will resolve this in a way that will allow
encryption to go forward." During his speech, he "outlined the principles
of the Administration's strategy and the issues it raised."

** Ownership **

Title: Straight Angle
Source: Washington Post (D1) (10/6/97)
http://www.washingtonpost.com/
Author: Howard Kurtz
Issue: Newspapers/Media Ownership
Description: When the Washington Blade announced that they would launch a
gay newspaper in N.Y. in a joint venture with the Manhattan-based News
Communications, there were doubts that straight corporate owners could do
justice to gay journalism. Troy Masters, publisher of a gay biweekly called
LGNY in New York, said, "There is a concern any time a corporation comes in
with big money and says its going to the terms of debate in a community.
This is about selling ads and corporatizing gay culture." But Don Michaels,
publisher of the Washington Blade and the New York Blade News, dismissed the
carping. He insists that the New York paper wouldn't be an advocacy
publication. "The gay community has moved beyond the point of disdaining
alliances with the mainstream community."

** Arts **

Title: Positive Power of Writing
Source: Washington Post (D5) (10/6/97)
http://washingtonpost.com/
Author: Diane Naughton
Issue: Arts/Health
Description: Programs like New Horizons, the Write Away project, and
Positive Plus, believe in the therapeutic effects of writing on cancer
patients, or any patient with a serious disease or trauma. James Pennebaker,
a prof. of psychology at the Univ. of Texas, says that by translating
experiences into language, people start to organize otherwise overwhelming
events, making them smaller and easier to deal with. He said, "Particularly
important, writing moves us to resolution."

** InfoTech **

Title: How Much Technology is too much?
Source: Washington Post (WashTech, pg. 19) (10/6/97)
http://www.washingtonpost.com/
Author: William Casey
Issue: Technology Advancement
Description: New advancements at Intel and IBM have raised concerns over
a "gap of delivery", or the fact that there is technology being produced
faster than we can adapt to it. It's simpler to announce great leaps in
technology than for users to realize the actual benefit. The "gap of
delivery" is discernable on 3 levels: hardware evolves faster than the
system software needed for its operation, application software like word
processing are slow to reflect the best features the operating environments
have to offer, and the disparity between computer power available in the box
and computer power actually used. Fundamental issues of productivity
shouldn't hinge on faster processors or more memory, instead it should
involve creative and efficient use of computers.

CRH is saddened to report that Anne Wells Branscomb has passed away. Mrs.
Branscomb was a communications and computer lawyer and author of Who Owns
Information? (Basic Books, 1994). In 1975 she became one of the first policy
analysts to use the term "information infrastructure," writing a paper for
the Aspen Institute, "Beyond Deregulation: Designing an Information
Infrastructure." Additional information on her life and accomplishments is
available at http://www.ngi.org/AWB/.
*********
Due to intense intra-organizational pressure, we're forced to congratulate
the Cleveland Indians this morning.

Communications-related Headlines for 10/6/97

FCC
NYT: F.C.C. to Defer Decision on Phone Deals

WorldCom/MCI: No, We're Not Done Yet
WSJ: Breaking Up BT and MCI Isn't a Done Deal Yet
WSJ: WorldCom Bid Worries Europe's Goliaths
WSJ: The Fiber Baron
WP: The Buzz Over The Bid
TelecomAM: It's Good To Talk: Getting It Out In The Open
On The WorldCom/MCI Deal
TelecomAM: Three-Way Deal? WorldCom Makes Bid Without BT

The Other Merger: Bell Atlantic/NYNEX
FCC: Bell Atlantic/NYNEX Merger

Digital Television
NYT: High-definition television:
Screens reflect back the business interests of
the executive beholder

Advertising
WSJ: IBM to Launch Global Web-Business Blitz
WSJ: Newspaper Publishers Expected to Post Higher
Earnings on Strong Ad Revenue
WSJ: Advertising Is Driving Growth at Internet Firms

America Online
WSJ: America Online Attempts to Increase Ads and
Shopping With New Software
WP: AOL Changes Channels
NYT: America Online Turns to TV as a Model

Internet Content
NYT: World Game Achieves Inventor's Vision of Global Play
NYT: Cartoons On the Web, From an Iconoclast

Journalism
NYT: Seeing Politics, and Mirrors, In the Coverage of Capitol Hill

Publishing
NYT: Black-Owned Bookstores Defend Niche

Old vs. New Media
NYT:

InfoTech
WP: Coming To a TV Near You
NYT: AT&T Cellular Phone Service To Allow Links to the Internet

** FCC **

Title: F.C.C. to Defer Decision on Phone Deals
Source: New York Times, D1, D13
http://www.nytimes.com/yr/mo/day/news/financial/fcc-kennard.html
Author: Seth Schiesel
Issue: FCC
Description: Federal Communications Commission Chairman Reed Hundt
announced that the FCC does not plan to make any decisions on whether to
allow Worldcom's bid for MCI to proceed and a challenge from AT&T to
BellSouth's petition to offer long-distance service in South Carolina until
the Senate approves the new FCC chairman and members. Hundt added that if
William Kennard's, the commission's current general council, confirmation
was delayed he would re-evaluate his position. According to people close to
the commission and on Capitol hill, "Senator Jesse Helms has made it clear
that he will consider trying to block Mr. Kennard's nomination unless Mr.
Kennard agrees to help a businessman named Zebulon Lee secure a radio
license in Asheville, NC."

** WorldCom/MCI: No, We're Not Done Yet **

Title: Breaking Up BT and MCI Isn't a Done Deal Yet
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: Steven Lipin & John Keller
Issue: Mergers
Description: The WorldCom bid for MCI looked like a slam dunk -- but not all
high percentage shots go in. MCI executives will look over the offer and
decide if a WorldCom-MCI company is better than a British Telecom-MCI
company -- and which would be better for stockholders. MCI and BT have been
working together for some time (BT owns 20% of MCI, BT has representation on
the MCI Board of Directors, and Concert Communications is a joint venture of
the two companies). It may take a lot to unravel this almost-marriage,

Title: WorldCom Bid Worries Europe's Goliaths
Source: Wall Street Journal
http://wsj.com/ (A18)
Author: Gautam Naik
Issue: Mergers
Description: If the WorldCom-MCI deal goes through, British Telecom will
lose out on the prized US market. It will also mean than large European
carriers like Deutsche Telekom and France Telecom "will have to face the
greater firepower, marketing savvy, and physical reach of a combined
WorldCom-MCI." Telcos have been preparing for the opening of the European
telecommunications market on January 1 by "striking splashy alliances with
existing carriers and new entrants." WorldCom has taken a low-key approach
-- building as much of its own infrastructure in order to cut costs. The
company is also building the underwater system will the greatest capacity --
the Gemini Cable, a mostly-Internet connection between New York and London.
Working with MCI, WorldCom could add many European corporate clients that it
has not reached yet. [See also "WorldCom's Bid for MCI Puts Global Links
Under Strain" in TelecomAM http://capitol.cappubs.com/am/ ]

Title: The Fiber Baron
Source: Wall Street Journal
http://wsj.com/ (A22)
Author: George Gilder, Seattle's Discovery Institute
Issue: Mergers
Description: WorldCom CEO Bernard Ebbers may be The Fiber Baron of the
Information Age. Gilder credits Mr. Ebbers with the vision to identify the
three key technologies of present-day telecommunications -- fiber, code
division multiple access wireless, and the Internet. Mr. Ebbers has gotten
control of two of them and may be able to parlay MCI's NextWave alliance to
become an international power in wireless, too. Forrester Research of
Cambridge estimates that if Internet traffic continues to grow at its
current pace, voice will fall to less than 1% of the total telecom traffic
by 2004. Other telcos have invested heavily in systems that are good for
voice traffic, but struggle to deliver data. Gilder calls Ebbers "a hero of
the dimensions of Rockefeller and [Michael] Milken."

Title: The Buzz Over The Bid
Source: Washington Business (Wash Tech p.12)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/06/0021-100697-idx.html
Author: Beth Berselli & Mike Mills
Issue: Corporate Communications Merger
Description: Workers at MCI Comm. Corp. expressed surprise and
speculation at the record-breaking bid of $30 billion made by Worldcom.
Concerns over the company's future, and the future of their jobs after the
merger, are running rampant through MCI's offices. Would MCI go with the
conservative Brits, the company
who made the initial bid, or would they go with upstart WorldCom? Given
the price Worldcom was offering, did MCI have a choice? But, according to
recent stock reports, the workers at MCI should have nothing but pride in
their company now. "I feel like the company is appreciated more," one
longtime employee said. Many employees also liked the fact that Worldcom is
a U.S. company. This, they say, would allow the two company cultures to mesh
easier than trying to adapt to the foreign operations of BT. There is even
more speculation over Worldcom's stock-only proposal. Raenell Herring, an
MCI contractor said, "Something funny is going on here. Where is their
money?" There are still others who express concern over another change in
direction that they believe neither MCI or Worldcom is ready for.

Title: It's Good To Talk:
Getting It Out In The Open On The WorldCom/MCI Deal
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Mergers
Description: British Telecom execs have not had strong backing from
shareholders during the bid to takeover MCI. The telecom giant has felt it
is too big to ever be taken over or bossed around. That attitude may hurt
the company which may have a great international strategy, but no one knows
about it. WorldCom shareholders, on the other hand, have turned into
"unquestioning acolytes" of CEO Bernard Ebbers as he uses WorldCom's highly
rated stock to finance deals -- deals that bring new synergies to the
company, raise the value of the stock, and leverage the next deal. The
question now is will MCI stockholders join the Ebbers fan club?

Title: Three-Way Deal? WorldCom Makes Bid Without BT
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Mergers
Description: WorldCom filed a suit against British Telecom and MCI in
Delaware last week, signaling that it may move ahead aggressively on its
takeover bid, regardless of the reactions of MCI and BT. The suit aims at
removing a poison pill designed to protect MCI from a hostile predators and
to remove a $450 million termination fee that would be payable by MCI if it
broke the terms of the agreement with BT.

** The Other Merger: Bell Atlantic/NYNEX **

Title: Bell Atlantic/NYNEX Merger
Source: FCC
http://www.fcc.gov/Speeches/Hundt/spreh758.html
Author: Chairman Reed Hundt
Issue: Mergers
Description: On Friday, FCC Chairman Reed Hundt addressed state regulators
on the Bell Atlantic/NYNEX merger: "It is my pleasure to be here - in my
final days as Chairman of the FCC - to bring together federal and state
regulators to discuss the implications of the Bell Atlantic/Nynex merger and
find ways in which we can work together to foster local competition. It was
in Philadelphia of course that our Federalism was invented. So, this is a
good place to be in order to talk about how to emphasize the virtues of our
complicated jurisdictional arrangements and how to minimize its vices."

** Digital Television **

Title: High-definition television:
Screens reflect back the business interests of the executive beholder
Source: New York Times, D5
http://www.nytimes.com/
Author: Joel Brinkley
Issue: Digital TV
Description: TV manufacturers have been conducting high-definition
television demonstrations for network executives over the past several
months. They are hoping to encourage the networks into broadcasting signals
that are compatible with the 18 formats that are part of the new digital
television system. At the same time, companies like Panasonic "want to make
it clear that they are willing to build equipment in whatever format the
networks prefer." Manufacturers are planning to put HDTVs on sale next year.

** Advertising **

Title: IBM to Launch Global Web-Business Blitz
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Raju Narisetti
Issue: Electronic Commerce/Advertising
Description: Beginning tomorrow, IBM will spend $200 million of an
advertising campaign to convince everyone that the Web is a great place to
do business. IBM is projecting that electronic business will more than
double in the next three years producing $380 million in sales. Mired in a
number of slow growth industries, IBM needs a big chunk of a growing market.
The ads will be part lecture (informing people just what the Internet and
electronic business are) and part sermon.

Title: Newspaper Publishers Expected to Post Higher Earnings on Strong Ad
Revenue
Source: Wall Street Journal
http://wsj.com/ (B7A)
Author: Jill Goldsmith
Issue: Newspapers/Advertising
Description: Newspaper publishers are expected to post better earnings than
during this period last year due to increased advertising revenue. Higher ad
revenue across different media "is a real sign that the advertising market
is white hot. When it's this hot, it doesn't usually pull back too fast,"
said Brian Oakes of Lehman Brothers. In the short-term, newspapers are
expected to do well over the rest of the year -- traditionally the biggest
for advertising. But the price of newsprint continues to soar, putting
additional pressure on the industry.

Title: Advertising Is Driving Growth at Internet Firms
Source: Wall Street Journal
http://wsj.com/ (B11B)
Author: Joelle Tessler
Issue: Internet/Advertising
Description: Internet commerce and advertising are pushing up the earnings
of Internet companies. America Online, for example, is seeing advertising
and electronic commerce revenue grow faster than subscription revenue. Even
companies that are not yet making money are narrowing their losses.

** America Online **

Title: America Online Attempts to Increase Ads and Shopping With New Software
Source: Wall Street Journal
http://wsj.com/ (B14)
Author: Jared Sandberg
Issue: Online Services
Description: Over the next few weeks, America Online will be rolling out new
software aimed at keeping customers online more -- looking at advertising
and making online purchases. To date, AOL's revenue from electronic commerce
still amounts to less than 20%. The new software "puts advertising and
commerce in context," says an AOL executive, blurring efforts to get
customers attention, informing them about products and inducing them to buy.

Title: AOL Changes Channels
Source: Washington Business (Wash Tech p.19)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/06/0131-100697-idx.html
Author: Rajiv Chandrasekaran
Issue: Online Services
Description: AOL plans to revamp its lineup of "channels", and focus on
simplifying and streamlining content in each section. Barry Schuler, the
president for creative development in AOL's network division, said, "This is
no loner a computer application. This is a new medium that has to compete
with television." Revised channels will have a slicker look with more photos
and graphics. Left sides of the screen will have links to specific areas
within a topic. The right side will present connections to constantly
changing selections of 2-3 events. On the button of a channel's main screen
will be links to the Web sites of 3 or 4 of AOL's partners. The move is
crucial now that AOL also has new software to improve navigation of the Web,
it's called "Version 4.0". "We've gone through the bushel basket and we've
selected the things that we think interest people," said Robert Jennings, a
VP for channel programming at AOL. "We're not going to be piling it on."

Title: America Online Turns to TV as a Model
Source: New York Times, D6
http://www.nytimes.com/library/cyber/week/100697aol.html
Author: Steve Lohr
Issue: Internet
Description: America Online will begin to overhaul their service next week
in an effort to attract between two and three million new subscribers over
the upcoming year. The new features are designed to strengthen AOL's role
as a primary gateway into cyberspace and to enable the company to charge
more for online banners and advertising. The services will be modeled after
television-style programming with categories like "good morning", "prime
time" and "late night". The new services will be gradually introduced to
current subscribers starting next Monday.

** Internet **

Title: World Game Achieves Inventor's Vision of Global Play
Source: CyberTimes
http://www.nytimes.com/library/cyber/week/100397netgame.html
Author: David J. Wallace
Issue: Internet Content
Description: More than 30 years ago, Buckminster Fuller envisioned a "World
Game" that would be played simultaneously on computers around the world.
The game would focus on how to solve such world problems as population,
explosion, hunger, disease and the allocation of natural resources. The one
thing that held him back was the inability to link computers together. In
August, a version of this game, called NetWorldGame, was introduced on the
World Wide Web. In this version participants "assume roles as citizens of
various nations and take on responsibilities for solving regional or local
concerns through trade, negotiation or political discussion." Medard Gabel,
executive director of the World Game Institute based in Philadelphia, said
"there's a richer data stream and a chance to play for more than a few
hours. But the downside is that you lose the social interaction. Some of
the solutions may be very good, they may be implementable in the real world.
And they may come from a high school student, a corporate lawyer or an
expert." The game was tested last year in the United Nations, Congress and
several high schools. As opposed to being viewed as just an educational
exercise, the NetWorldGame is "intended to spur real change in the status
quo." You can access the NetWorldGame at:
http://www.worldgame.org/networldgame.

Title: Cartoons On the Web, From an Iconoclast
Source: New York Times, D11
http://www.nytimes.com/library/cyber/week/100697toon.html
Author: Amy Harmon
Issue: Internet Content
Description: Ren and Stimpy are back!!! Not quite, but their originator and
cult hero, John Kricfalusi, is plotting a new cartoon revolution on the
Internet. Initially, the Microsoft Network approached Mr. Kricfalusi's
production company, Spumco, to develop a cartoon to be distributed via their
online service. After Microsoft decided to do away with much of their
entertainment programming, including Kricfalusi's cartoon, he decided to
continue forward with one of the Internet's first original cartoons and make
it available on the Spumco's web site. Kricfalusi aims to generate income
through sponsorship and cartoon paraphernalia while also offering young
cartoonists a site for promoting their work. He hopes that this new use of
the medium will "circumvent the entrenched structure of entertainment
distribution," radically changing the types of entertainment products that
receive airtime and who gets paid for what. Surfers should be able to view
Mr. Kricfalusi's cartoon starting later this month.

** Journalism **

Title: Seeing Politics, and Mirrors, In the Coverage of Capitol Hill
Source: New York Times, D1, D13
http://www.nytimes.com/yr/mo/day/news/financial/capitol-hill-media.html
Author: Melinda Henneberger
Issue: Journalism
Description: There are a growing number of news coverage services emerging
on Capitol Hill. Newspapers, newsletters and online publications are
becoming the latest source of almost instantaneous updates to our nations
policymakers and their assistants. While some services are reaching out to
readers beyond the hill, much of their coverage remains within the political
walls. There is concern by some readers that by keeping these services so
focused these services are creating an even greater level of political
isolation. "It creates this looking-glass world of mirrors reflecting more
and more off one another and less and less of the outside world," said
Representative Charles E. Schumer (D-NY). At the same time, some consumers
believe that the increased focus is positive because it makes it more
difficult for policymakers to "hide pork or plain misbehavior."

** Publishing **

Title: Black-Owned Bookstores Defend Niche
Source: New York Times, D11
http://www.nytimes.com/yr/mo/day/news/financial/black-bookstores.html
Author: Andrea Adelson
Issue: Books
Description: Providing a ray of hope for locally owned bookstore lovers, the
Phenix Information Center, a tiny bookstore in Southern California, is
applying a successful survival strategy against bookselling superstores and
discount chains. In addition to a resurgence of black authors and an
abundance of titles, owners Faron and Joann Roberts have built Phenix into
one of the nation's top-ten black bookstores by regularly attracting
high-profile black writers for speeches and booksignings. When asked how
they obtain such top-notch writers and celebrities, Mrs. Roberts said "we
put together very good proposals." In addition to their top attractions,
the Phenix serves as a "resource for black history for academics and as a
cultural hub" for the surrounding community.

** Old vs. New Media **

Title: Over the Din of New Media, a Voice for the Audio Arts
Source: New York Times, D5
http://www.nytimes.com/
Author: Laurie J. Flynn
Issue: Old vs. New Media
Description: The Audio Engineering Society, the nation's largest
organization of audio professionals, wants to bring more attention to the
world of sound technology. In an era where images are becoming larger and
stronger forces, the AES wants to point out the large role audio plays in
media experiences. "We have at least 50 percent of the multimedia
experience and less than 12 percent of the bandwidth," said Elizabeth Cohen,
president of the AES. This is a challenge given the technical issues
involved with bandwidth and other factors "that affect the quality of sound
as it moves in computer code through the sometimes narrow maze of the Net."
Another current focus in audio standards is to insure that they are "open" -
that is, making sure to allow for many compatible approaches as opposed to
favoring one particular vendor. As stated by Ms. Cohen "standards should be
things that nurture new ideas, not inhibit them."

** InfoTech **

Title: Coming To a TV Near You
Source: Washington Business (Wash Tech p.5)
http://washingtonpost.com/wp-srv/WPlate/1997-10/06/0071-100697-idx.html
Author: Jerry Knight
Issue: Infotech
Description: Circuit City is investing $140 million in Digital Video
Express, the developer of a video disc system that puts movies on CDs and
includes a built-in pay-per-view system. For consumers, this will be a new
and improved format for storing movies. People will be able to pick up a
Divx (rhymes with civics) and pay for 2-day rental period that doesn't start
until the first time the disc is played. After the 48 hours the movie
"self-destructs" and won't play again until you pay for another viewing
period. The Divx player has a built-in modem that will contact the video
store and add the second viewing session to your bill. You may keep the
disc, or throw it away. RCA, Panasonic, and Zenith will have Divx players on
the market by next spring. But, video store owners see Divx as a threat to
their survival: it will cost consumers more, but earn lower profits for
video stores. Other opposition concerns include: another possible "VHS vs.
Beta" war because just-released DVD players can't play Divx discs; the
pricing; privacy due to the modem-billing system; the pay-per-view concept;
and the possible environmental hazard of the discs themselves.

Title: AT&T Cellular Phone Service To Allow Links to the Internet
Source: New York Times, D7
http://www.nytimes.com/library/cyber/week/100697pocketnet.html
Author: John Markoff
Issue: InfoTech
Description: AT&T's Wireless Services Division plans to announce today a new
service called Pocketnet. This service will allow a cellular phone user to
tap into electronic mail and a variety of information sources via the
Internet.
*********
Let's hear it for them O's!

Communications-related Headlines for 10/3/97

Television/International
WP: Troops Seize Bosnian Serb TV Towers
WP: Bosnian Serb TV Chief Warns West

Journalism/Advertising
WP: CNN Stops Airing Ad Campaign
WSJ: *This* Is CNN?

FCC
FCC: Statement of William E. Kennard

WorldCom/MCI Merger
WSJ: WorldCom Bid Leaves MCI Few Options
WP: Worldcom Would Shift MCI's Focus
NYT: British Telecom, Outbid for MCI, Is Facing Hard Choices
NYT: MCI-Worldcom Match: They'll Fit, or Won't

Cable/Internet
WSJ: Intel and Microsoft Split Over Internet-TV Gear

Public Television
NYT: Chief Named at Corporation for Public TV

Encryption/Privacy
NYT: PGP Offers New Encryption Software for Corporations
NYT: An Attack on Privacy Rights

Radio
WP: Kids' Stations Pull The Plug

*********************************************
* Television/International *
*********************************************
Title: Troops Seize Bosnian Serb TV Towers
Source: Washington Post (A1) (10/2/97)
http://www.washingtonpost.com/
Author: Lee Hockstader
Issue: Television/International
Description: NATO-led troops seized control of 4 TV broadcasting towers
in the Serb-controlled half of Bosnia to secure balanced coverage by the
media. This move capped off weeks of contention between the state
television station and top Western military and civilian officials, who were
incensed by broadcasted propaganda against NATO and internat'l Bosnia
officials. U.S. Gen. Wesley Clark said that transmitters will be handed
over to Serb President Biljana Plasvic, someone the West favors more than war
criminal Karadzic. Officials say that they hope to make an arrangement under
which the rival Serb factions will share airtime. The seizure of the towers
have the NATO generals and Western diplomats casting themselves as media
execs determined to make an even-handed state TV station in a country that has
never had one. Ambassador Carlos Westendorp, the top Western mediator, said
"[Bosnian Serbs] are entitled to hear the truth in fair and balanced reports."

Title: Bosnian Serb TV Chief Warns West
Source: Washington Post (A36)
http://washingtonpost.com/
Author: Lee Hockstader
Issue: Media Control
Description: Miroslav Toholj issued a thinly veiled threat of retaliation
to Western peacekeepers the day after they seized control of 4 key radio
stations. "I fear there will be some uncontrolled actions and unpleasant
conditions for your soldiers and international organizations," Tohlj said.
"We won't be able to control the situation." Carlos Westerndorp, chief
western mediator, issued a statement through a spokesman justifying the
seizure. He cited Serb TV system's use of the airwaves as "both a tactical
and strategic weapon...to block the truth from the people of the Serb
Republic, and to frustrate the peace process." Westerndorp also recommended,
as one of the changes in the TV system's governing board, that Toholj must
go. Toholj asserted that the real reason for the seizure was the West's
determination to secure political gains with Serb President Bilijana Plavsic.

*********************************************
* Journalism/Advertising *
*********************************************
Title: CNN Stops Airing Ad Campaign
Source: Washington Post (B2)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/03/093l-100397-idx.html
Author: Howard Kurtz
Issue: Journalism/Advertising
Description: A heavy ad campaign about global warming aired on CNN was
pulled under order of Ted Turner, who is a known environmentalist. (Last
month Turner was talking about global warning on "Larry King Live".) After
being informed of CNN's decision, Ben Goddard, the adman who created the
ads, said, "[T]his was millions of dollars going out the door. I pointed
this out...it didn't seem to make good sense, if the ads were good enough to
run up to now." CNN spokesman Steve Haworth said that "it has been our
policy for years not to
run ads on controversial news stories that we are covering...Our principles
are worth more than the ad dollars." Yet, Goddard noted CNN ran
industry-backed "Harry and Louise" ads on health care reform (which he also
produced) while the media covered it
intensively. Haworth said that no ads would be accepted from any faction in
the controversy.

Title: *This* Is CNN?
Source: Wall Street Journal
http://wsj.com/ (A10)
Author: WSJ Editorial
Issue: Journalism/Advertising
Description: CNN has pulled ads critical of the United Nations treaty to
curb global warming. A CNN spokesman said that "inattentive viewers might
confuse the ads with news coverage and vice versa." The editorial criticizes
CNN because it did not lift issue ads during coverage of NAFTA, health care
reform, or tort reform. By CNN's logic, if the cable news channel decided
not to cover Sen Thompson's campaign finance hearings, it would accept issue
ads promoting their importance to the public. "By pulling the plug on a
responsible point of view in a public debate, CNN is circumscribing
give-and-take over" the issue.

*********************************************
* FCC *
*********************************************
Title: Statement of William E. Kennard
Source: FCC
http://www.fcc.gov/commissioners/kennard/statements/wek701.html
Author: William E. Kennard
Issue: FCC
Description: Statement of William E. Kennard at his confirmation hearing
before the United States Senate Commerce, Science, and Transportation
Committee.

*********************************************
* WorldCom/MCI Merger *
*********************************************
Title: WorldCom Bid Leaves MCI Few Options
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: John Keller
Issue: Mergers
Description: Senior executives at MCI are trying to figure out a response to
WorldCom's takeover bid. There may be little to do but negotiate with the
unsolicited suitor: 1) the WorldCom deal is $9 billion more than British
Telecom's offer, 2) it produces billions in cost savings that would not have
been seen otherwise, and 3) it will give MCI access to local networks and
Internet facilities world-wide that MCI otherwise would have had to build
itself. If MCI executives turned down WorldCom, they would have to convince
shareholders that BT's lower bid was better. WorldCom's stock continues to soar.

Title: Worldcom Would Shift MCI's Focus
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/03/134l-100397-idx.html
Author: Mike Mills
Issue: Corporate Communications Merger
Description: If Worldcom's proposed $30 bill. buyout is finalized then
MCI would focus solely on more profitable business customers and jettisoning
approx.
20 million residential long-distance customers, according to a top official
of the purchasing company. John Sidgmore, vice chairman of Worldcom, said
that customers would likely be transferred to regional Bell companies. This
set-up would have calls on Worldcom/MCI wires, but rates and billing would
set by other companies. Worldcom would be "selling" MCI customers to other
companies, who pay for rights to serve established accounts, but customers would
have the legal right not to stay with the company they were moved to. When
all of this would occur is still unknown, Worldcom would have to wait until
next year to actually buy MCI. "We're not saying [the end of the residential
service] is going to happen on day one," Sidgmore said. Initially "we're
going to market to consumers just like MCI does. On the other hand, our
strategy is not in the consumer business."

Title: MCI-Worldcom Match: They'll Fit, or Won't
Source: New York Times, C1, C6
http://www.nytimes.com/yr/mo/day/business/index.map?239,205
Author: Seth Schiesel
Issue: Mergers
Description: While Worldcom has been successful in acquiring more than a
few companies over the past five years, its record is not as impressive when
it comes to retaining their top executives. Similar questions are now being
raised in regards to the MCI management team. A response to Worldcom's
offer is expected from MCI in the next three weeks, but if a merger does go
through analysts do not expect many of MCI's executives to stay on board.
If this is the case, analysts also wonder as to whether Mr. Ebbers,
Worldcom's chair, will be able to confidently manage the corporate power.
Bryan van Dussen, an analyst for the Yankee Group, a high-technology
research firm in Boston, said "the enthusiasm for Worldcom is driven by
mergers and acquisitions and it can be difficult to assess its ability to
execute. Does Worldcom have the ability to manage the consumer base that
represents 40 percent of MCI's revenue? Does Worldcom have the ability to
manage a product line as complex as MCI's?" At the moment investors seem to
think so as both MCI and Worldcom's stock are on the rise.

Title: British Telecom, Outbid for MCI, Is Facing Hard Choices
Source: New York Times, C6
http://www.nytimes.com/yr/mo/day/news/financial/worldcom-mci.html
Author: Edmund L. Andrews
Issue: Mergers
Description: Some wonder how British Telecommunications will remain a big
player in the telecommunications field if they lose the MCI merger
opportunity. With both Deutsche Telekom and France Telecom swiftly moving
ahead in their alliance with Sprint and the EU opening telephone markets to
competition in 1998, it is understandable that there are questions being
raised. But BT appears to be confident in whatever the final outcome may
prove to be, for as an anonymous institutional investor in BT pointed out
"it is a win-win situation." BT could merge with MCI, they could continue
in an existing venture with MCI or they could sell their stake in MCI to
Worldcom "for an expected $1.7 billion profit" and look for another
telecommunications partner. BT continues to remain silent refusing to
elaborate on the one-sentence statement they offered yesterday that they are
"considering the issues."

*********************************************
* Cable/Internet *
*********************************************
Title: Intel and Microsoft Split Over Internet-TV Gear
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: Don Clark
Issue: Cable/Internet
Description: In a rare split for the personal computer duopoly, Intel is
supporting a rival technology for bringing the Internet to households
through cable set-top boxes. Intel will back the standards for digital cable
TV spearheaded by Network Computer Inc, a company owned by Microsoft rival
Oracle and Netscape. The competing groups have sent the different standards
to CableLabs, a cable research and development consortium that is soliciting
proposals for the next generation of TV set-top boxes.

*********************************************
* Public Television *
*********************************************
Title: Chief Named at Corporation for Public TV
Source: New York Times, C5
http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+69+
0++%28chief%20named%20at%20corporation%20for%20public%20tv%29%20AND%20%28%29
%20AND%20%28%29
Author: Glenn Collins
Issue: Public Television
Description: Robert T. Coonrod was "unanimously and enthusiastically" named
president and chief executive of the Corporation for Public broadcasting on
Wednesday.

*********************************************
* Encryption/Privacy *
*********************************************
Title: PGP Offers New Encryption Software for Corporations
Source: New York Times, CyberTimes
http://www.nytimes.com/library/cyber/week/100397pgp.html
Author: Peter Wayner
Issue: Encryption
Description: Pretty Good Privacy software company announced a new version
of their encryption software yesterday. This new version, called PGP for
Business Security 5.5, would "make it easier for companies to deploy
encryption throughout their organization." This key management system
allows companies to recover more rapidly from any potential industrial spy
breakthroughs, to access the files of an employee who is sick, injured or
fired, as well as offering more power to enforce corporate policy through
knowledge of employee's files.

Title: An Attack on Privacy Rights
Source: New York Times, A22
http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+23+
0++%28an%20attack%20on%20privacy%20rights%29%20AND%20%28%29%20AND%20%28%29
Author: NYTimes Editorial Staff
Issue: Encryption
Description: Last month, FBI Director, Louis Freeh, urged Congress to
outlaw the manufacturing of any encryption technology that the government
could not easily break. The bill, which quickly passed through the House
Intelligence Committee, was brought to a halt in the House Commerce
Committee due to lobbying efforts by electronic and media companies,
scientists, and privacy advocates. This bill, if made into law, would not
be effective since there is uncrackable encryption software already
available overseas. Even worse, the plan could severely cripple encryption
technology. "In a threat to privacy, the bill sets a lower legal standard
for the Government to get passwords than it must now meet to tap phone
calls. The best way to reduce many types of industrial and financial crime
is to provide citizens powerful encryption so they can communicate without
fear of corporate spies and thieves." The debate continues to move
(forward?) in regards to constitutional rights and the amount of privacy
people can expect in cyberspace.

*********************************************
* Radio *
*********************************************
Title: Kids' Stations Pull The Plug
Source: Washington Post (B1) (10/2/97)
http://washingtonpost.com/
Author: Marc Fisher
Issue: Radio
Description: The Radio Zone, an AM band children's radio show, will be
pulled off the air near the end of Nov. as the result of a buyout by Mega
Broadcasting. "Just one more unique voice snuffed out of the radio
business...we did the best we could for five years," said Virginia Carson,
the chief exec. of Capitol Kids Radio of Silver Spring, the station's owner.
The two Washington-area stations, WKDL-1050 and WKDV-1460, will be converted
to Spanish-language programming. No price has been announced. The Radio
Zone's Baltimore station, WKDB-1570 is still on the market. Many
schoolchildren and parents were moved to campaigns to save the station, but
it was just too late. The station's closure was announced on the day before,
an unusual move, but as Carson said, "We want to have some closure for the
kids. We want to leave in a responsible way."
*********
We are outta here. Have a great weekend.