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AT&T Long-Distance Rates Cut and MCI Joins in Move

Court Gets Rival Plans for USA Network

Shhhh! Reed Hundt Has Seen the Future

Tiny Tonga Expands Its Domain

One Last Request for Jazz 90

Telecommunications Act fails consumers

Phone competition off to a slow start

Churn up, shares down in L.A.

No spectrum fees in budget bills

Is I-chip next for the Internet?

Bud Paxson Sets His Sights To Be Lucky Number 7
*********************************************
Title: AT&T Long-Distance Rates Cut and MCI Joins in Move
Source: New York Times http://www.nytimes.com/(D2)
Author: Mark Landler
Issue: Telephone Regulation
Description: making good on a promise made in May, AT&T announced that it
will lower long distance rates by 5% for day and evening calls and by 15%
for night and weekend calls. MCI announced that it would match the rate
decrease. AT&T agreed to cut rates during regulatory reform proceedings at
the Federal Communications Commission.

Title: Court Gets Rival Plans for USA Network
Source: New York Times http://www.nytimes.com/(D8)
Author: Geraldine Fabrikant
Issue: Ownership
Description: Viacom and Seagram are trying to settle a dispute over
ownership if the USA Network. Seagram sued Viacom in April 1996 because
Viacom had breached the ownership agreement. A Delaware court has asked each
party to propose way to settle the dispute. Viacom wants to auction the
network off (as long as it is allowed to bid on it). Seagram has proposed a
"buy-sell" agreement by which Seagram would offer a figure that Viacom could
either sell its share or buy Seagram's share of USA. The cable TV network
has 72 million subscribers and is valued at $3 - 3.4 billion.

Title: Shhhh! Reed Hundt Has Seen the Future
Source: Wall Street Journal http://www.wsj.com/ (A15)
Author: Holman W. Jenkins Jr.
Issue: Reed Hundt
Description: In his Business World column, Jenkins criticizes FCC
Chairman Reed Hundt for shooting down the possible AT&T-SBC merger in a
speech last week. "And since Mr. Hundt is seen as a stunt double of Al
Gore, the discussions are now said to be kaput." Jenkins argues that this
particular regulatory agency is not looking at the evidence, which indicates
that a merger would stimulate competition.

Title: Tiny Tonga Expands Its Domain
Source: Washington Post http://www.washingtonpost.com/(C1)
Author: Elizabeth Corcoran
Issue: Internet/International
Description: If you were bothered because eviltofu.com was already taken,
don't fret because eviltofu.to is probably still available. ".to" stands for
Tonga -- a country in the South Pacific made up of 171 small islands. Every
country can decide who gets to use its name in an Internet address. Most
companies require users to live in the country or be affiliated with it.
Tonga just wants you to pay a $100 registration fee.

Title: Daily Digest
Source: Washington Post http://www.washingtonpost.com/ (C1)
Author: WP Staff
Issue: Phone Rates
Description: MCI and AT&T, starting today, have cut their domestic
long-distance rates by 5% during the day and 15% during the night and
weekends. Long distance companies will be dropping their rates because they
are saving $1.7 billion from lowered access fees "for completing calls on
regional phone companies' local networks."

Title: One Last Request for Jazz 90
Source: Washington Post http://www.washingtonpost.com/ (D7)
Author: Marc Fisher
Issue: Radio
Description: Delano Lewis, the President of National Public Radio, sent a
letter to the DC Financial Control Board protesting the sale of the
University of the District of Columbia's Jazz 90 to a commercial religious
broadcaster. In the letter, Lewis said, "the
sale of a public radio license to a commercial broadcaster means the public
radio system and the service we provide will be weakened. While
we understand the control board's need to close the District's financial
gap, we hope you will not sacrifice public interest in order to do so." The
University of the District of Columbia was required by the control board to
shrink its $10.1 million budget gap and felt that selling the station was
the way to do it. Jazz 90 is the District's only all-jazz station.

Title: Telecommunications Act fails consumers
Source: Miami Herald
http://www.herald.com/opinion/columns/docs/054815.htm(6/23/97)
Author: Mark Cooper, Americans for Competitive Telecommunications
Issue: Competition
Description: The race is on between consolidation and competition. Year two
of the Telecommunications Act of 1996 will determine consumers' fate. If
local providers are allowed to offer long distance service before they open
their markets to competition, consumers will lose twice: they will see no
reductions in either local or long distance rates.

Title: Phone competition off to a slow start
Source: San Jose Mercury News
http://www.sjmercury.com/business/competition063097.htm(6/30/97)
Author: Howard Bryant
Issue: Competition
Description: Although passage of the Telecommunications Act of 1996 was
supposed to mean competition in the local phone market, some industry
analysts believe it won't happen for decades, if at all. In California,
PacBell and GTE have lost less than one percent of their customers since
passage of the Act in February 1996. Tom Long, telecommunications analyst
for TURN, a San Francisco consumer
advocacy group, says "The monopoly is expected to treat competitors fairly
at the same time it has a great deal at stake. Because competitors are
taking away business, it's not surprising that the incumbent is doing
everything it can to make it difficult for its competitors. Anyone who
didn't realize this wasn't paying attention. Regulators must realize they
have to get tough on the incumbent."

Title: Churn up, shares down in L.A.
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.4)
Author: Lynette Rice
Issue: Television Content
Description: Six percent viewer households tuned into broadcast television
last season. One reason my be the high turnover of network executives. "It
is so much more competitive, because networks are now part of big multimedia
corporations run by people who don't tend to be patient," says a studio
head. "They really don't have a grasp of the creative process, and there's
so damn much money at risk. They don't wish to be patient. They always have
one eye on the stock. And taking that into consideration, with all the cable
competition and proliferation of broadcast networks, it's harder to hold on
to a job."

Title: No spectrum fees in budget bills
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.14)
Author: Paige Albiniak
Issue: Spectrum
Description: Budget legislation passed by the House and Senate last week did
not include new spectrum fees for users that have not paid for it. Senate
Commerce Chairman John McCain (R-Ariz) and House Telecom Subcommittee
Chairman Billy Tauzin (R-LA) fought off these fees, viewing them as another
tax on consumers. Both bills will now go to a conference committee. The
National Association of Broadcasters will continue to lobby against the
spectrum fees.

Title: Is I-chip next for the Internet?
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.16)
Author: Dan Trigoboff
Issue: Internet Regulation
Description: "We can and must develop a solution for the Internet that is as
powerful for the computer as the V-chip will be for television," President
Clinton said after the Supreme Court struck down the Communications Decency
Act. One of the sponsor's of the law, Senator Can Coates (R-Ind), accused
the Court of "undermin[ing] religious liberty and influence" and
"defend[ing] immediate unrestricted access of children to pornography." The
Court determined that there is little Congress can do to regulate content on
the Internet without violating the First Amendment.

Title: Bud Paxson Sets His Sights To Be Lucky Number 7
Source: Broadcasting&Cable http://www.broadcastingcable.com/(p.42)
Author: Steve McClellan
Issue: Ownership
Description: Bud Paxson owns 42 television stations that reach 49% of the
viewing audience. The co-founder of the Home Shopping Network sells
timeslots for infomercials, but wants to branch out to mainstream
entertainment program providers. These producers would buy time slots on the
Paxson network of stations, and then they would have to go out and sell
advertising time. There's very little risk for Paxson and the producers can
tap into the $37 billion general television advertising market.

At the FCC http://www.fcc.gov

*********

Court Protects Speech On Internet

HaperCollins Cancels Books In Unusual Step for Industry

For Parents, a New and Vexing Burden

Clinton Readies New Approach on Smut

In talks Over TV Ratings, Neither Side Expects a Deal Soon

Money for Arts and Land Purchase Rejected

AT&T-SBC Merger Plans Are Crumbling

High Court Strikes Down Internet Smut Law

1st Amendment Applies To Internet, Justices Say

Smut Ruling Ratifies the Internet's Founding Principles

Statute "Silences Some Speakers...Entitled to Constitutional Protection"

Yes, the Net is Speech

Long-Distance Field Barred To Bell Firm

GTE FILES UNIVERSAL SERVICE CASE IN 8TH CIRCUIT

Commission Adopts FY 1997 Regulatory Fee Schedule.

Commission Denies SBC Application to Provide Long Distance Telephone Service
in the State of Oklahoma
*********************************************
Title: Court Protects Speech On Internet
Source: New York Times http://www.nytimes.com/(A1)
Author: Linda Greenhouse
Issue: First Amendment/Free Speech
Description: "Content on the Internet is as diverse as human thought,"
Justice Paul Stevens said yesterday as the Supreme Court ruled that speech
on the world wide computer system is entitled to the highest level of First
Amendment protection similar to that of books and newspapers. [for more info
see URL http://www.ciec.org] [The NYT also published excerpts from the
ruling on page A20]

Title: HaperCollins Cancels Books In Unusual Step for Industry
Source: New York Times http://www.nytimes.com/(A1)
Author: Doreen Carvajal
Issue: Publishing
Description: HarperCollins has begun an effort to downsize its book lists,
canceling at least 100 titles. "it's a way of trying to make sense out of
the business," said chief executive Anthea Disney. "In all honesty, I don't
want to publish books we won't get behind and publish well." HaperCollins is
the publishing unit of Rupert Murdoch's News Corporation.

Title: For Parents, a New and Vexing Burden
Source: New York Times http://www.nytimes.com/(A21)
Author: Amy Harmon
Issue: Content/Internet
Description: The Supreme Court's ruling on the Communications Decency Act
places the responsibility of children's online activities on parents. "And
while that may square with the First Amendment and free speech, it leaves
many already beleaguered parents uneasily sizing up a new and unfamiliar
burden." Article suggests that parents 1) sit with children when they are
online, 2) install filtering software, or 3) use one of the major online
services providers -- they all offer parental control options for no
additional cost.

Title: Clinton Readies New Approach on Smut
Source: New York Times http://www.nytimes.com/(A21)
Author: John Broder
Issue: Content/Internet
Description: President Clinton will convene a meeting on July 1 to seek a
solution to the problem of online pornography. The meeting will include
industry executives, teachers, librarians, and groups representing parents.
President Clinton supports new filtering technology, parental supervision of
online use, and stronger self-regulation by the online industry.

Title: In talks Over TV Ratings, Neither Side Expects a Deal Soon
Source: New York Times http://www.nytimes.com/ (A22)
Author: Lawrie Mifflin
Issue: V-Chip
Description: Negotiators from the broadcast industry and parents' groups
have reached an impasse they probably wouldn't be solved until after
Congress' 4th of July recess, if at all. The broadcast industry has conceded
to add content warnings to the current TV ratings system, but, in return,
broadcasters want a three year moratorium on legislation regarding the
ratings system.

Title: Money for Arts and Land Purchase Rejected
Source: New York Times http://www.nytimes.com/(A23)
Author: Jerry Gray
Issue: Arts/Budget Issues
Description: Republicans on the House Appropriations Committee voted to kill
the National Endowment of the Arts. "For some of the hard-core and
right-wing conservatives, the shutdown of the NEA has become a litmus test
as to whether the Republican leaders in the House are still devotees to some
of the conservative causes," said Rep Michael Forbes (R-NY) who joined
Democrats in an attempt to restore full money for the arts endowment. The
Appropriations Committee Chairman, Rep Robert Livingston (R-LA), said "This
is the expropriation of taxpayers' dollars to be used for elitist purposes.
The arts should be financed, but they should be financed privately."

Title: AT&T-SBC Merger Plans Are Crumbling
Source: Wall Street Journal http://www.wsj.com/ (A3)
Author: John J. Keller and Leslie Cauley
Issue: Mergers
Description: Talks between SBC Communications and AT&T about
merging are falling apart because of concerns about opposition from
Washington, potential legal problems getting SBC into the
long-distance business, disarray at AT&T, and irreconcilable differences
in the crunchy vs creamy peanut butter debate. Yesterday, the FCC said that
SBC was not allowed to enter the long distance market in Oklahoma because it
had not sufficiently opened its local market to competition.

Title: High Court Strikes Down Internet Smut Law
Source: Wall Street Journal http://www.wsj.com/ (B1)
Author: Edward Felsenthal and Jared Sandberg
Issue: First Amendment/Free Speech
Description: The Supreme Court struck down the Communications Decency Act
yesterday in a 7-2 decision and praised the "democratic potential of
cyberspace." Jerry Berman of the Center for Democracy and Technology said
"The Supreme Court has written the First Amendment for the 21st Century."
The Communications Decency Act, a provision in the 1996 Telecommunications
Act, declared it illegal to transmit "indecent" material to minors.
Internet service providers were concerned that they would be held
responsible for what their subscribers were sending around on the Internet.
A big issue in the case was whether the Internet would be treated like print
materials or broadcast television. Courts have not allowed many
restrictions on print materials on First Amendment grounds. Greater
regulation is allowed with broadcasting since spectrum is a limited public
asset that must be divided up to prevent chaos. Chief Justice Rehnquist
and Justice O'Connor agreed with most of the court's decision, but wanted
to uphold the part of the CDA that prohibits adults from knowingly sending
electronic indecent materials to a "specific" youth.

Title: 1st Amendment Applies To Internet, Justices Say
Source: Washington Post http://www.washingtonpost.com/ (A1)
Author: John Schwartz and Joan Biskupic
Issue: First Amendment/Free Speech
Description: Yesterday the Supreme Court in a 7-2 decision found the
Communications Decency Act to be unconstitutional and that "constitutional
free speech protections apply just as much to online systems as they do to
books and newspapers." Justice John Paul Stevens wrote that, "The law
threatens to torch a large segment of the Internet community." Stevens also
wrote that "It is true that we have repeatedly recognized the governmental
interest in protecting children from harmful materials...But that interest
does not justify an unnecessarily broad suppression of speech addressed to
adults."

Title: Smut Ruling Ratifies the Internet's Founding Principles
Source: Washington Post http://www.washingtonpost.com/ (A20)
Author: Rajiv Chandrasekaran and Elizabeth Corcoran
Issue: First Amendment/Free Speech
Description: The Supreme Court's decision confirms the Internet's
"anything goes tradition. From its earliest days, those who built it saw it
as a new frontier of ideas, one in which they could explore new thoughts and
theories on a strong base of individual and academic freedom, without fear
of censorship from Washington." Now, the Internet community is a lot bigger
and more diverse than the original core groups of users. "In many new
information formats, sex has proved to be a powerful stimulant of expansion.
Not long after the first cameras were invented in the mid-19th century,
secret studios were photographing nudes. And the videocassette recorder got
a boost in sales in the mid-1980s from its ability to let people view sexual
films at home. It was the same with the Internet. Not too long after it
began, people were placing digital versions of sexual pictures on Internet
computers for others to see."

Title: Statute "Silences Some Speakers...Entitled to Constitutional
Protection"
Source: Washington Post http://www.washingtonpost.com/ (A20)
Author: Supreme Court
Issue: First Amendment/Free Speech
Description: Excerpts from Supreme Court decision written by Justice John
Paul Stevens.

Title: Yes, the Net is Speech
Source: Washington Post http://www.washingtonpost.com/ (A24)
Author: WP Editorial Staff
Issue: First Amendment/Free Speech
Description: Less than an hour after the Supreme Court decision, Internet
users could read the full text of the decision online. "Such is the reach
of the medium that now, thanks to the court's decision, has been freed to
grow and develop as buoyantly in the future as it has up till now -- freed,
that is, from the threatened constraints of the so-called decency law."
The CDA, if upheld, would have seriously hobbled free speech on the net. The
Court made clear that protecting kids from online smut is important, but
can't be used "as an excuse to muzzle this potential for vastly increased
communication and interaction."

Title: Long-Distance Field Barred To Bell Firm
Source: Washington Post http://www.washingtonpost.com/ (G2)
Author: Reuter
Issue: Phone Regulation
Description: Yesterday, the FCC rejected SBC's application to enter the long
distance market in Oklahoma. The Federal phone regulators decided that
SBC, based in San Antonio, TX, hadn't met one of the requirements to enter
the long distance market -- opening its local phone market to competition.
Since the break up of AT&T's monopoly in 1984, Baby Bells have not been
allowed into the long distance market, but the Telecommunications Act of
1996 made it ok as long as the Baby Bells met requirements outlined in a
14-point checklist. Last month the Justice Department recommended that SBC's
bid be rejected.

Title: GTE FILES UNIVERSAL SERVICE CASE IN 8TH CIRCUIT
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Universal Service
Description: "GTE is challenging the FCC's universal service order because
that order fails to ensure that quality services will be provided at
affordable prices to customers in rural and poor areas," said William Barr,
GTE's executive vice president and general counsel. GTE believes that the
FCC's order does not provide sufficient support in high-cost areas."Far from
being competitively neutral, the FCC order invites cherry-picking and
threatens to undermine affordable phone service," Barr said.

At the FCC http://www.fcc.gov
Commission Adopts FY 1997 Regulatory Fee Schedule.

Commission Denies SBC Application to Provide Long Distance Telephone Service
in the State of Oklahoma (CC Docket No. 97-121).
*********
Happy sweltering and have a good weekend.

Lobbyists for TV Angle to Elude Rules to Return Free Channels

TV Ratings Are Mired In Demand By Industry

Another Broadcast Giveaway

British Digital TV Licenses Are Awarded

Netscape and Microsoft Are Cleared on Exports

Software Moguls Suddenly Compete To Be Nice Guys

Netscape, Microsoft Get Export Permits For Software With Strong Encryption

Nonprofit Group Will Inherit NSF's IP Number Duties

Buyer Sought for District Cablevision

*********************************************
Title: Lobbyists for TV Angle to Elude Rules to Return Free Channels
Source: New York Times (A1)
Author: Joel Brinkley
Issue: Digital TV
Description: Each of the country's 1600 TV stations were loaned a second
channel for the transition to digital television. In response to criticism
that stations were getting a "multi-billion dollar gift of public property,"
the FCC passed a rule demanding that the TV stations return their old analog
channel by 2006 so that this spectrum could be auctioned off. "But now
lobbyists for the television broadcasting industry have managed to work two
provisions into Senate and House budget bills that could allow
broadcasters to evade the most significant commitments they accepted in
exchange for the additional channels." One provision lets broadcasters keep
the channels past 2006 and the other extends the deadline by which stations
have to be
showing digital programming. Reed Hundt contemplated what would happen if
these two provisions became law. Hundt said, "what a result that would be:
Give the digital television licenses to broadcasters so no competitors could
get them; tell broadcasters they don't really have to build the digital
television systems and then tell broadcasters their reward for not using
this incredibly valuable public property is that they never have to give back
the analog licenses." Broadcasters claim that extended deadlines ensure
that all consumers will have purchased the necessary equipment to receive
digital programming and will not be left behind.

Title: TV Ratings Are Mired In Demand By Industry
Source: New York Times (A10)
Author: Lawrie Mifflin
Issue: V-Chip
Description: Negotiations between parent-advocacy groups and the
television industry on revising the fledgling TV rating system stalled
yesterday around TV representatives' position that "the groups and
Congressional leaders must pledge to keep the issues of violence and sex on
television out of the political arena for at least two years." Earlier in
the day the groups had been so close to an agreement that press conferences
had been scheduled. Negotiators had agreed to add the S,V,L ratings as
well as a D for suggestive dialogue and an FV for fantasy violence for the
Y-7 (must be seven to watch, or if you're a dog, one year) category.

Title: Another Broadcast Giveaway
Source: New York Times (A26)
Author: NYT Editorial Staff
Issue: Digital Television
Description: Now that broadcasters have their second frequency for free,
which they lobbied so hard to get, they are changing their tune about what
they intend to do with the licenses. They are not planning to offer the
highest quality type of programming and they don't want to return their old
spectrum anytime in the near future. There are two provisions on these
issues in Congress right now. "Congress was wrong to give away valuable
airwaves. It should not now compound the mistake by perpetuating it."

Title: British Digital TV Licenses Are Awarded
Source: New York Times (D3)
Author: Bloomberg News
Issue: Digital Television
Description: Britain awarded three licenses for ground based digital
television broadcasts.

Title: Netscape and Microsoft Are Cleared on Exports
Source: New York Times (D8)
Author: John Markoff
Issue: Encryption
Description: The Commerce Department gave Microsoft and Netscape the OK
to "export more secure versions of their software to banking customers."
"This is a positive step, but it does not resolve the large question of
whether we will be able to sell products based on strong cryptography,"
stated a lawyer from Netscape. The US government has been imposing tight
limits on what types of encryption programs US companies could export
because of the government's security concerns.

Title: Software Moguls Suddenly Compete To Be Nice Guys
Source: Wall Street Journal (A3)
Author: --
Issue: Libraries/Philanthropy
Description: Bill Gates pledged $200 million of his personal fortune to
help public libraries get online. Now a day later, Lawrence Ellison,
Chairman of Oracle, has announced that his company will give $100 million to
schools to "place inexpensive computing devices called network computers on
every child's desk." "The unusually large donations appear to be
coincidental examples of a new wave of corporate giving. Though both are
setting up new nonprofit foundations, Mr. Gates and Mr. Ellison are
stressing projects that bring, quick measurable results, and can also bring
business benefits to contributors."

Title: Netscape, Microsoft Get Export Permits For Software With Strong
Encryption
Source: Wall Street Journal (B6)
Author: Dean Takahashi and David Bank
Issue: Encryption
Description: The Commerce Department will allow Microsoft and Netscape to
export Internet banking programs with more powerful encryption codes (128
bits) than have been previously allowed. Therefore, the corporations don't
have to maintain two different Internet software programs -- one for use in
the US and one for international use. "More significantly, it puts them on
an even playing field with foreign competitors, some of whom have won
customers simply by adding stronger encryption to U.S.-made products."
Financial institutions don't have to provide the government with "key
recovery" plans as other organizations are being asked to do.

Title: Nonprofit Group Will Inherit NSF's IP Number Duties
Source: Wall Street Journal (B6)
Author: Rebecca Quick
Issue: Internet
Description: The National Science Foundation will turn over the
responsibility for Internet Protocol numbers to a nonprofit coordinating
group called the American Registry for Internet Numbers. Every Internet
address has two identifiers. While people use domain names to find Internet
addresses, computers find information with the IP numbers.

Title: Buyer Sought for District Cablevision
Source: Washington Post (C11)
Author: Paul Farhi
Issue: Cable
Description: Tele-Communications Inc. (TCI) is seeking a buyer or a
partner to handle the management for District Cablevision, DC's cable
provider. TCI has been losing money on the system and has received many
complaints about quality of service from customers. TCI is trimming down on
the cable stations it owns or runs directly.

*********

TV Sales Weaken on Fears New Sets Will Soon Be Obsolete

To Screen or Not to Screen: Libraries Confront Internet Access

Editors Urge Limits on Input By Advertisers

For Ma Bell, the Bell Tolled Long Ago

Notable and Quotable

Knight-Ridder Puts Five Newspapers On Selling Block

Magazine Editors Worried About Trend of Warning Advertisers About Articles

The Baptists' Passion Play

Online, On the Tube

Year of TV's dissed content

Baptist church targets Disney, ABC for boycott

Hill giving on channel giveback

TV ratings talks falter
*********************************************
Title: TV Sales Weaken on Fears New Sets Will Soon Be Obsolete
Source: New York Times (D1)
Author: Joel Brinkley
Issue: Digital TV
Description: "This industry has a tough balancing act ahead. We have to
preserve sales of a product we are simultaneously trying to replace," says a
Consumer Electronics Manufacturers Association economist. Sales of
conventional analog TV sets -- especially high-end, big screen TVs -- are
stagnating as consumers worry these sets will soon be obsolete and digital
TV sets will soon be available.

Title: To Screen or Not to Screen: Libraries Confront Internet Access
Source: New York Times (D1)
Author: Amy Harmon
Issue: Libraries/Internet
Description: Librarians across the country are testing Internet filtering
programs that will allow them to block children's access to pornographic
websites. Some find Net Nanny, Surfwatch and Cybersitter can't do the job
"without compromising the library's commitment to the free flow of ideas."

Title: Editors Urge Limits on Input By Advertisers
Source: New York Times (D7)
Author: Constance Hays
Issue: Journalism
Description: The American Society of Magazine Editors (ASME) is urging
editors to resist influence from advertisers over what appears in their
publications. The ASME board worries that some advertisers may mistake an
early warning as an open invitation to pressure the publisher or editor to
alter, or even kill, the article in question," the society wrote in a
statement last week. "We believe publishers should -- and will -- refuse to
bow to such pressure."

Title: For Ma Bell, the Bell Tolled Long Ago
Source: Wall Street Journal (A14)
Author: Robert E. Allen
Issue: Phone Regulation
Description: This op-ed by the chairman of AT&T argues that a merger
between AT&T and SBC would promote competition -- not re-establish Ma Bell.
"AT&T's position is clear: Local competition is the most important benefit
of the Telecommunications Act. No partnerships should be approved unless
they result in more competition in local service." Currently, local phone
companies are working hard to keep new entrants out of their markets, and a
merger between a local company and a long distance company could be the
thing that get's competition going.

Title: Notable and Quotable
Source: Wall Street Journal (A14)
Author: Text of interview of Reed Hundt by James Glassman
Issue: Universal Service
Description: Glassman questions Hundt on the subsidy system that will
support communications connections for schools and libraries. In the
interview, Glassman questioned the start of a new phone subsidy to raise
money to connect school and libraries.
In response, Hundt insisted that the fund will be small and that this is the
most equitable way to raise the needed capital.

Title: Knight-Ridder Puts Five Newspapers On Selling Block
Source: Wall Street Journal (B11)
Author: Martha Brannigan
Issue: Newspapers
Description: Knight-Ridder is going to sell the Press-Telegram in Long
Beach, CA; the Post-Tribune in Gary, Ind.; and a package of three papers
-- Boca Raton News, FL., Union-Recorder in Milledgeville, GA., and Newberry
Observer in South Carolina. Knight-Ridder is selling these papers because
they aren't pulling in enough profit. The company recently bought four
papers from Disney and has been revaluating its holdings since that purchase.

Title: Magazine Editors Worried About Trend of Warning Advertisers About
Articles
Source: Wall Street Journal (B11)
Author: G. Bruce Knecht
Issue: Journalism/Advertising
Description: The American Society of Magazine Editors is very concerned
about a trend among magazines to alert advertisers about the content of
articles in upcoming issues. The editor of Money magazine stated that he
"worries that some advertisers may mistake an early warning as an open
invitation to pressure the editor to alter or even kill the article in
question."

Title: The Baptists' Passion Play
Source: Washington Post (D2)
Author: Jonathan Yardley
Issue: Religion
Description: In his column, Yardley argues that though the Southern
Baptist Convention may be close minded about Disney, at least it's a
statement of belief. "By contrast, it is difficult to believe that Disney
believes in anything except money and the compelling need to make even more
of it..." In a related article on A9, many Southern Baptists attended
Walt Disney World this weekend.

Title: Online, On the Tube
Source: Washington Post (p.17)
Author: WP Staff
Issue: Advertising
Description: Viewers of DC TV station WDCA can get free email service and
access to Internet chat groups. When users register, they must provide a
certain amount of information including consumer preferences. The station
will use this consumer data to pull in advertisers who want specific
Internet audiences. The advertising revenue will finance the service

Title: Year of TV's dissed content
Source: Broadcasting&Cable (p.4)
Author: Chris McConnell
Issue: Television Regulation
Description: "It's been quite a lot like working in the emergency room
because you don't know what's going to come in next," says a lobbyist for
ABC. Broadcast lobbyists can't remember when Washington has been so bent on
using the TV schedule to help fix society's problems. The Media Access
Project's Andrew Schwartzman says they just don't have long memories; there
have been attempts to regulate TV content in every decade since the 50's.
Today's issues include "safe-harboring" violent shows, rating TV content for
use of the V-Chip, and curtailing alcohol advertising. Communications lawyer
Henry Geller predicts that many of the recent programming restriction
proposals would not hold up well in court: "There's no question that we're
in a period of raised eyebrows. I don't think the government wants to go to
the mat."

Title: Baptist church targets Disney, ABC for boycott
Source: Broadcasting&Cable (p.5)
Author: JS
Issue: Religion
Description: Hollywood's reaction to the Souther Baptist Convention's
decision to boycott The Walt Disney Company has been mixed. Some think it a
joke; other believe that it is time that someone took a stand against "the
pollution of the culture." Tom Wolzien, a Wall Street media analyst, says
the boycott will have little effect on the media giant.

Title: Hill giving on channel giveback
Source: Broadcasting&Cable (p.8)
Author: Paige Albiniak
Issue: Digital TV/Spectrum
Description: The House and Senate Commerce committees have forwarded budget
legislation that will allow broadcasters to keep their second channel of
spectrum for years to come. In an order adopted by the Federal
Communications Commission in May, broadcasters were to return one channel of
spectrum in 2006. The committees' bills adopted last week will allow
broadcasters to keep the additional channel until 95% of homes have digital
compatible TVs or convertor equipment.

Title: TV ratings talks falter
Source: Broadcasting&Cable
Author: Paige Albiniak
Issue: V-Chip
Description: After Vice President Gore voiced support for violence ratings
for television programming aimed at children seven years and older, the TV
industry -- broadcasters, cable programmers, and TV producers -- called off
negotiations. Ken Johnson, an aide to House Telecom Subcommittee Chairman
Billy Tauzin (R-LA) said, "the fact of the matter is that some members of
Congress as well as advocacy groups pushed the envelope too far."
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