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Digital Television
Unbundling DTV and Free Time (B&C)
Must-Carry Draft Expected (B&C)
DTV Tower Strike Force (FCC)

Television/Cable
Parents Taking to Ratings (B&C)
Don't Box Us In, Says Cable (B&C)

Media & Politics
Money and Polls Take Center Stage in California Race (NYT)

Internet Economics
Long Boom or Bust (NYT)
Technology: Overbidding on Internet Stocks Has
Broad Consequences (NYT)
Creating a Silicon Valley in the Washington Area (NYT)

Internet
Los Angeles Libraries Experience Renaissance With Computer Use
(CyberTimes)
In Brief (B&C)
Netscape Uses Browser to Beef Up Web Business (WSJ)

Technology
Intel Delays The Delivery of Key Chips (WSJ)
Marshaling Microchips for a Better Dog Tag (WP)

Privacy
Protecting Privacy (WP)

Newspapers
An On-Line Critic Tackles the Big Papers (NYT)
Some Newspapers Try No-News Front Page (NYT)

Minorities & Jobs
Lutheran Church-Missouri Synod v. FCC & United States (FCC)

Radio Ownership
In Brief (B&C)
Joint Statement: Radio Assignment and Transfer in Redding, CA
(FCC)

Advertising
TV Guide to Introduce Coverage of Advertising (NYT)

** Digital Television **

Title: Unbundling DTV and Free Time
Source: Broadcasting&Cable (p15)
http://www.broadcastingcable.com/
Author: B&C Writers of Closed Circuit
Issue: Digital TV/Public Interest
Description: FCC officials have decided to "separate their planned efforts
to write digital TV public interest rules from their study of proposals" to
give political candidates free air time. The proposed inquiry is now
focusing on ways to enhance political debate. Officials say that regulators
will take up the digital TV public interest issues in a later rulemaking.

Title: Must-Carry Draft Expected
Source: Broadcasting&Cable (p17)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Digital TV/Cable
Description: As early as this month, FCC commissioners plan to launch an
effort to decide how must-carry rules will be applied to digital TV
broadcasts. Susan Fox, senior legal advisor to FCC Chairman William Kennard,
told a Washington broadcast conference last week that commissioners should
receive draft plans for the rulemaking proposal in June.

Title: DTV Tower Strike Force
Source: FCC
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1998/nrmm8017.html
Issue: Digital Television
Description: The Federal Communications Commission today announced the
creation of a DTV tower strike force, chaired by Commissioner Susan Ness, to
target potential problems in the implementation of digital broadcast
television (DTV) and to work with local authorities and broadcasters to
expedite implementation of DTV. Commissioner Ness said, "The FCC is
committed to doing everything possible to help the television viewing public
quickly receive the dramatic benefits of new digital television. This group
will work to help resolve any problems that could slow down the DTV
implementation process."

** Television/Cable **

Title: Parents Taking to Ratings
Source: Broadcasting&Cable (p16)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: V-chip
Description: Although more than half of the parents surveyed say they use
the revised TV ratings system in deciding what programs their children can
watch, almost 70 percent say they do not plan to purchase a new V-chip
equipped set, according to a study of 1,358 parents and 446 children
conducted by the Kaiser Family Foundation. However, 65 percent of parents
said they would use a V-chip equipped set if they had one, and 78 percent of
the children said they approved of the V-chip design to "allow parents to
block access to shows that get certain ratings, so their kids won't be able
to watch." But more than 35 percent (one-third) of kids interviewed said
they would try to get around such blocking techniques so they could watch
forbidden programs. "The Kaiser study shows that the TV parental guidelines
are doing what they were designed to do -- provide parents with advance
cautionary information to assist them in monitoring the television watching
of their young children," said Jack Valenti, president of the Motion Picture
Association of America and architect of the TV ratings system.

Title: Don't Box Us In, Says Cable
Source: Broadcasting&Cable (p15)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Cable
Description: Cable operators want the FCC to allow them to continue
providing settop boxes that incorporate both "channel surfing" and security
functions. "A prohibition on the provision of such integrated boxes...would
be passed on to the consumer in the form of lower sale or lease prices," the
National Cable Television Association said in a submission to FCC
commissioners last week. Commissioners are considering rules to implement
provision of the 1996 Telecommunications Act that "mandate the commercial
availability of settop 'navigation' devices." At the end of last week, FCC
officials were still "struggling to wrap up a rulemaking" that they say is
"fraught" with technical complexity.

** Media & Politics **

Title: Money and Polls Take Center Stage in California Race
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/washpol/calif-elect-gov.html
Author: Richard Berke
Issue: Media & Politics
Description: California voters will pick nominees for governor today in "an
election that has rekindled a debate over the potency of television
commercials and underscored the perils for wealthy candidates who finance
their own campaigns," Berke writes. In the Democratic primary for governor,
Alfred Checchi has spend some $40 million -- mostly on TV ads. The amount is
a new record for any non-Presidential election. Rival Jane Harman, a Member
of Congress from Los Angeles, has spend nearly $15 million of her husband's
fortune. But the expected winner is Lieutenant Governor Gray Davis, a
twenty-five-year political veteran who has raised money himself and spend
much less on TV advertising. A veteran pollster said, "It's an extraordinary
case of an inverse relationship between advertising and results. It's going
to be the kind of story they'll put in advertising textbooks because
everyone thinks if you put more money in advertising it sells more."
[Also see NYT (A12), "Last in Flash and Cash, an Underdog Pulls Ahead" by
Todd Purdum
http://www.nytimes.com/yr/mo/day/news/washpol/calif-elect-gov-davis.html]

** Internet Economics **

Title: Long Boom or Bust
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01futurist.html
Author: Steve Lohr
Issue: InfoTech
Description: Peter Schwartz sells big ideas. He has a vision of something he
calls "The Long Boom," an era between now and 2020 in which there will be a
global economic boom fueled by technological advance. Part of the vision is
a telecommunications revolution brought to all the world by satellite
projects, high-speed Internet connections, telephony and video. He sees
phone and Internet access for *everyone* by 2005.

Title: Businesses Explore Cyberauctions
Source: New York Times (C5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01auction.html
Author: Claudia Deutsch
Issue: Electronic Commerce
Description: "Auctioneers without Internet auctions will be out of business
in five years," said Michael Brader-Araje of Open Site Technologies
http://www.opensite.com. There is a growing industry serving
business-to-business Internet auctions. Forrester Research Inc estimates
that $8.7 billion in goods will be auctioned this year online and that
number is expected to grow to $52.6 billion by 2002. Advantages to
businesses include: 1) they move older models off shelves and off books, 2)
they obviate the need to transport goods to a live auction, 3) they let
equipment dealers buy and sell without having to move goods to their own
warehouses, 4) they let companies unload excess part anonymously, and 5)
they help companies that have closed or modernized plants to place uneeded
tools.

Title: Technology: Overbidding on Internet Stocks Has
Broad Consequences
Source: New York Times (C5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01tech-column...
Author: Jerry Colonna, Flatiron Partners
Issue: Internet Economics
Description: John Doerr is often quoted as saying that the Internet
represents the greatest legal creation of wealth in history. The rise of
Internet stocks seems to prove him right, but they are a tough yardstick for
companies to be measured by. Pre-Internet, a return of five times invested
capital was terrific. Now, some investors are seeing returns of 500 times
invested capital over three to five years. The problem is that the
fascination with everything Internet can overvalue stocks and when the
poorly planned ones fail expectations, they can bring down the value of all
Internet-related stocks. [See also ChiTrib, Sec 4, p.2 "A contrarian sees
collision on technology stock bandwagon" by Adam Lashinsky San Jose Mercury
News)]

Title: Creating a Silicon Valley in the Washington Area
Source: New York Times (C5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01washington....
Author: Tom Watson
Issue: InfoTech
Description: You've heard of Silicon Valley, Silicon Alley in NYC, and maybe
even Silicon Toast...errr Silicon Coast in LA. But there's also a large
number of digital-related start-ups in the Washington, DC area from
Baltimore to Northern Virginia. There's also Mario Morino who started a
software company, grew it and walked away with $80 million when he sold it
to Computer Associates. Mr. Marino used the money to start the Marino
Institute, which finances programs in youth advocacy and services,
entrepreneurship, social networking, and community services. The Institute
founded the Potomac Knowledgeway Project which is promoting
"knowledge-based" business in the region. Last year, the Netpreneur program
www.netpreeur.org was started; its aim is to build the wired business
community by getting digital entrepreneurs together, online and off.

** Internet **

Title: Los Angeles Libraries Experience Renaissance With Computer Use
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/31library-la.html
Author: Rebecca Fairly Raney
Issue: Internet Access/Libraries
Description: A recent study conducted by MCI LibraryLINK found that since
1996 the use of libraries for Internet use has grown by more than 500
percent. The study showed that 16 percent of study respondents accessed the
Internet from someplace other than school, work or home and that almost half
of the group gained access via their local library. Susan Kent, a librarian
in Los Angeles has worked in public libraries for 30 years and says: "I see
what's happening now as the best time ever for libraries." She also is aware
that due to Internet connection libraries are moving more into the public
spotlight as one way to close the gap between those who have computers and
those who do not. You can access MCI LibraryLINK's site
at:http://www.librarylink.com/

Title: In Brief
Source: Broadcasting&Cable (p57)
http://www.broadcastingcable.com/
Author: B&C Writers
Issue: Copyrights/Internet Regulation
Description: The House Telecommunications Subcommittee will hold a hearing
this Friday on a bill that would protect copyrighted material online. The
bill has already passed out of the House Judiciary Committee, but Rep. Tom
Bliley, chairman of the Commerce Committee, complained that the legislation
also falls under his jurisdiction. A subcommittee markup of the bill will
follow on June 17 and then will proceed to a full committee markup.
Proponents of the bill hope to get legislation passed this year.

Title: Netscape Uses Browser to Beef Up Web Business
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Kara Swisher
Issue: Corporate Revamping
Description: Netscape Communications Corp. is planning to unveil today a
"major revamping" of its Web site. Netscape's is upgrading its software to
include special buttons that "move users more quickly to features of its
Netcenter site, and allows them to configure the browser and service to work
more like an integrated computer desktop." Netscape also is planning to
announce plans to merge its browser division into the Web-site division.
"Our goal is to turn the 70 million users of our software into the world's
biggest media network," said Mike Homer, as executive vice president who
recently took over responsibility for Netcenter. "Being able to leverage our
browser, so that features of itlink into the Web site seamlessly, is a great
differentiation for us over our competitors."

** Technology **

Title: Intel Delays The Delivery of Key Chips
Source: Wall Street Journal (A3,A6)
http://wsj.com/
Author: Quentin Hardy
Issue: Technology
Description: Intel Corp. is delaying the delivery of its next-generation
microprocessor by more than six months. The move could disrupt plans of more
than a dozen computer and software companies "whose fortunes are tied to the
long-awaited chip." Intel had hoped to have the chip, code-named Merced,
available by the second-half of 1999. But due to underestimating the time it
would take to test the complex chip on a variety of computer systems, the
company doesn't expect delivery of large commercial quantities until
mid-2000. The Merced is the most significant chip to come out of Silicon
Valley since Intel's Pentium in 1993.

Title: Marshaling Microchips for a Better Dog Tag
Source: Washington Post (Bus.5,6
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/01/017l-060198-idx.html
Author: Sarah Schafer
Issue: Technology
Description: Hal Woodward and his four-person company, Data-Disk, have
designed a "digital dog tag" in response to the Army's request for a small,
resistant device that would contain a computer chip holding a soldier's
medical and personal information for quick access in the field. According to
the U.S. Army Center of Military History, dog tags have been standard issue
in the Army since 1906. Traditionally they have displayed a soldier's name,
social security number and blood type. By using the digitized tag, called
Medi-Tag, soldiers could carry around their entire medical histories. The
information would be accessed using a specialized scanning device that would
give doctors instant access to medical records. Commercial enterprises, such
as nursing homes, have also expressed interest in these types of devices.

** Privacy **

Title: Protecting Privacy
Source: Washington Post (A16)
http://www.washingtonpost.com/wp-srv/WPlate/1998-06/01/001l-060198-idx.html
Author: WPost Editorial Staff
Issue: Privacy
Description: The Justice Dept. sent a letter to Rep. Henry Hyde, chairman of
the House Judiciary Committee, on May 20 regarding the department's
opposition to the Clone Page Authorization Act, a bill the committee was
"poised to take up and had passed the Senate without measurable opposition."
Clone pagers are devices used by law enforcement to "mimic the numeric
beepers" carried by thousands of Americans. Agents use the devices to
intercept beeper messages sent to a target of surveillance. They are most
often used in pursuing drug dealers. Currently, authorities are required to
obtain a search warrant before using a clone pager. But the legislation
would lower that standard making it more identical to tracing a call. The
Justice Dept. wrote in its letter: "Because clone pagers intercept the
'contents' of a communication, we believe there is a substantial possibility
that...courts would hold their use to constitute a 'search' for Fourth
Amendment purposes. Accordingly, we believe the proposed bill's provisions
for authorizing the use of clone pagers would be subject to serious
constitutional challenge." The department also said: "We are unaware of any
law enforcement need for such authorization and believe that the proposal is
unwise as a policy matter." As result of the letter, Rep. Hyde removed the
bill from the committee's agenda at a recent markup.

** Newspapers **

Title: An On-Line Critic Tackles the Big Papers
Source: New York Times (C8)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/01slate.html
Author: Lisa Napoli
Issue: Internet Content/Newspapers
Description: Scott Shuger is paid to read, rant about and to the nation's
major daily newspapers. "Today's Paper" is a service of Slate magazine,
owned by Microsoft. "One of the things he is supposed to do is educate
people about how to read the newspaper," said Slate's Editor, Michael
Kinsley. "It's always interesting that USA Today and The New York Times have
different views about what's going on in the world. One will lead with a
story on page one and the other will have it buried on D24. Both of those
judgments can't be right." Each night, Mr. Shuger reads the next day's front
pages and writes a report on what made the news, what didn't, placement and
missing details in articles. See
http://www.slate.com/code/todayspapers/todayspapers.asp, but you come back
to Headlines, y'hear?

Title: Some Newspapers Try No-News Front Page
Source: New York Times (C8)
http://www.nytimes.com/yr/mo/day/news/financial/no-news-frontpage.html
Author: Dylan Loeb McClain
Issue: Newspapers
Description: Back in 1996, a fierce internal debate started at the
Pittsburgh Post-Gazette when the paper's early Sunday edition was printed
with no front-page articles -- just teasers to features in the rest of the
paper. The result has been increased sales and imitators in Milwaukee,
Dallas and Fort Worth. "We looked at why people were buying that edition,
and it wasn't for breaking news," said Ralph Langer, editor of the Morning
News. The advantage of the format, he said, is that it allows the paper to
highlight "the articles you think have the most reader appeal."

** Minorities & Jobs **

Title: Lutheran Church-Missouri Synod v. FCC & United States
Source: FCC
http://www.fcc.gov/Bureaus/OGC/Briefs/1998/petn971116.html
Issue: Minorities/Jobs
Description: "The Lutheran Church--Missouri Synod [the Church], operates two
radio stations. For many positions at the stations, [the Church] recruited
and hired only seminarians or their spouses. This denomination's membership
is about two per cent African-American, and the NAACP challenged the
stations' license renewal applications on the ground that the stations'
practices had not complied with the FCC's requirements for minority
recruiting. The Commission initially concluded, pursuant to its
long-standing policy upheld by this Court in King's Garden, Inc. v. FCC, 498
F.2d 51 (D.C. Cir. 1974), that the Church had erred by giving preferential
treatment to seminarians and their spouses for positions that did not
directly affect the stations' programming, and this case ensued. However, in
a broad rule making proceeding that had been initiated in 1996 to streamline
the Commission's EEO rule, the Commission adopted an order while this case
was pending that changed its King's Garden policy: the Commission issued a
binding order (incorrectly termed a mere "policy statement" by the panel)
permitting radio stations owned by religious groups to favor members of
their religious group for all positions at the station. Having changed
position on the central issue presented by the case, the Commission
accordingly sought a remand." (See Chairman Kennard's statement
http://www.fcc.gov/Speeches/Kennard/Statements/stwek837.html)

** Radio Ownership **

Title: In Brief
Source: Broadcasting&Cable (p56)
http://www.broadcastingcable.com/
Author: B&C Writers
Issue: Radio/Ownership
Description: The Federal Communications Commission "signed off" last week on
CBS's acquisition of American Radio Systems Corp.'s 97 radio stations. "The
commission granted CBS waivers of its one-to-a-market rule in Boston,
Baltimore, Pittsburgh and San Francisco but required CBS to spin off
stations in Boston, Baltimore and San Francisco. An earlier settlement with
the Justice Dept. also required CBS to spin off a total of seven stations."

Title: Joint Statement: Radio Assignment and Transfer in Redding, CA
Source: FCC
http://www.fcc.gov/Speeches/Ness/States/stsn815.html
Author: Commissioners Ness & Tristani
Issue: Radio/Ownership
Description: "The application approved today by the Mass Media Bureau raises
the question of whether it is in the public interest to grant the assignment
and transfer of four additional radio stations in the Redding, California
area to Regent Communications. The assignment, in our view, should not have
been approved without a more rigorous examination of the facts.
Unfortunately, neither the Bureau nor the Commission has made such a review.
The Bureau's action, therefore, should not be viewed as having any
precedential weight. The Commission has an independent statutory obligation
under Section 310(d) to determine that each and every broadcasting license
assignment or transfer is in the public interest. This duty is complementary
to, and not subrogated to, the antitrust responsibilities of the Department
of Justice or the Federal Trade Commission."

** Advertising **

Title: TV Guide to Introduce Coverage of Advertising
Source: New York Times (C8)
http://www.nytimes.com/yr/mo/day/news/financial/media-talk.html
Author: Stuart Elliot
Issue: Advertising/Television
Description: So, you think some ads are better than the programming? Well,
now TV Guide has hired a consulting editor to write a column every other
week on advertising as well as special issues on TV advertising.
"Advertising has become one of the most entertaining and talked-about parts
of TV viewing," said Steven Reddicliffe, editor in chief of TV Guide.
(Entertainment Weekly has countered with a planned "Guide to Summer
Commercial Viewing" which should hit newsstands on Saturday)
*********

Telephone Regulation
Methodology for Determining Universal Service Support (FCC)
Bell Atlantic Tells FCC: 'Don't Mess With Access Charges' (TelecomAM)
AT&T to Pass Internet Costs To Callers (WP)

Campaigns
Adversaries Join Campaign to Improve Coverage of State, Local
Politics (WP)

Television
TV Ratings Frequently a Jumble to Parents (ChiTrib)

Antitrust
Antitrust Case Against Is on Horizon (WP)
U.S. Is Preparing to Sue Intel Over Its Microchip Monopoly (NYT)
Plans for Digital TV in Germany Suffer Setback As EU Commission
Blocks Bertelsmann Alliance (WSJ)
German Digital TV Deal Is Blocked by Regulators (NYT)

Internet
MCI Plans to Sell Internet Assets To British Firm (WP)
Microsoft Will Let Gateway Alter Screen (WP)
Sick of Junk E-Mail? Here Are Some Tips for Fighting Back (WSJ)

Arts
Site Showcases Films Made Especially for the Web

Technology
Lucent Unveils New Products to Expand Its Presence in
Data-Networking Market (WSJ)

** Telephone Regulation **

Title: Methodology for Determining Universal Service Support
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da980987.html
Issue: Universal Service
Description: The Federal Communications Commission will hold an en banc
hearing on Monday, June 8, 1998, from 9:30 a.m. to 4:30 pm, in the
Commission meeting room, Room 856 at 1919 M. Street, N.W., Washington, D.C.
The Commission has invited the state members of the Federal-State Joint
Board on Universal Service to also preside at this en banc. At the en banc
hearing, the Commission and the state members of the Joint Board will review
certain proposals for revising the methodology for determining federal
universal service support for non-rural carriers. The en banc will be
carried live on the Internet. Internet users may listen to the real-time
audio feed of the en banc by accessing the FCC Internet Audio Broadcast Home
Page. Step-by-step instructions on how to listen to the audio broadcast, as
well as information regarding the equipment and software needed, are
available on the FCC Internet Audio Broadcast Home Page. The URL address for
this home page is http://www.fcc.gov/realaudio/.

Title: Bell Atlantic Tells FCC: 'Don't Mess With Access Charges'
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Telephone Regulation
Description: Bell Atlantic Senior Vice President for Government Relations
Thomas Tauke told reporters that the FCC should "leave access charges alone
for a year" and "complete pricing
flexibility" as promised. "Don't mess with access charges," he said. FCC
Chairman Bill Kennard has said he'd like to reexamine access charges because
the competition that was supposed to lower rates has not materialized. Mr.
Tauke claims the FCC promised last year to hold a proceeding that would
allow local phone companies to adjust rates without FCC approval, but the
Commission has not followed through. Mr. Tauke also criticized AT&T's plan
to impose a new monthly charge on consumers to recover the costs of a
universal service program to hook up schools and libraries to the Internet.

Title: AT&T to Pass Internet Costs To Callers
Source: Washington Post (C4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/28/158l-052898-idx.html
Author: WP Staff Reporters & News Service
Issue: Long-Distance/Universal Service
Description: AT&T Corp. said yesterday that starting in July it will begin
charging residential long-distance customers "a fee of about 5 percent of
the cost of their out-of-state calls to help subsidize Internet hookups for
schools, libraries and rural health care facilities. In addition, customers
will be charged a fee of 1.8 percent of their monthly charges for intrastate
long-distance calls." This move by AT&T could further fuel the growing
controversy over how to fund the schools and libraries program.

** Campaigns **

Title: Adversaries Join Campaign to Improve Coverage of State, Local Politics
Source: Washington Post (A4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/28/131l-052898-idx.html
Author: Howard Kurtz
Issue: Campaigns
Description: Pew Charitable Trust is spending $7 million on several projects
designed to spur better media coverage and higher standards in state and
local politics. "It's about raising the quality of the conversation," said
Paul Light, who runs Pew's public policy department. "The main thrust is to
go directly to the American public and say we can do better...Americans
don't expect much from their candidates, and their candidates deliver." A
key focus of the projects is the "meager" television coverage of state and
local campaigns, which is often overshadowed by reports on crime and other
more "sensational" fare.

** Television **

Title: TV Ratings Frequently a Jumble to Parents
Source: Chicago Tribune (p1)
http://chicago.tribune.com/textversion/article/0,1492,SAV-9805280126,00....
Author: Tim Jones
Issue: V-Chip
Description: The TV ratings system has been in place for months, but is
anyone using it? The Kaiser Family Foundation released two polls yesterday
-- one found that 54% of parents reported that they used the rating system
to help them decide what their kids should watch; the other found that 36%
of kids 10 to 17 had decided not to watch a show because of it's rating
either to avoid the wrath of parents or the shame of watching a show
targeted at kids. Jones writes, "People want some controls, but they don't
entirely trust the television industry to be the ratings gatekeeper between
the TV set and their children." Vice President Al Gore attended the surveys'
release and encouraged parents to use the ratings system and the V-chip when
it becomes available. [See Kaiser Family Foundation at
http://www.kff.org/homepage/]

** Antitrust **

Title: Antitrust Case Against Is on Horizon
Source: Washington Post (C1,C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/28/163l-052898-idx.html
Author: Elizabeth Corcoran & David Segal
Issue: Antitrust
Description: Federal antitrust investigators are planning over the next week
to recommend that the Federal Trade Commission charge Intel Corp. with
unfairly using its market clout to "strong-arm" corporate customers.

Title: U.S. Is Preparing to Sue Intel Over Its Microchip Monopoly
Source: New York Times (A1)
http://www.nytimes.com/library/tech/98/05/biztech/articles/28intel.html
Author: Joel Brinkley
Issue: Antitrust
Description: The Federal Trade Commission is preparing a antitrust suit
against microprocessor chip manufacturer Intel. Brinkley writes, "The suit
will accuse Intel of selectively withholding key technical information about
its microprocessors chips from the computer manufacturers with which Intel
is involved in patent and related product disputes. Without that data, the
manufacturers are unable to design new products." This may be the first of
multiple suits filed by the FTC against Intel.

Title: Plans for Digital TV in Germany Suffer Setback As EU Commission
Blocks Bertelsmann Alliance
Source: Wall Street Journal (A19)
http://wsj.com/
Author: Cacile Rohwedder & Julie Wolf
Issue: Antitrust/Digital TV
Description: "The European Union Commission rejected a planned television
alliance of Germany's Kirch Group, Bertelsmann AG and Deutsch Telekom AG,
the countries dominant telephone and cable group. The ban sets back the
companies, which had invested millions of dollars and delays development of
digital pay TV in Germany, Europe's largest market."

Title: German Digital TV Deal Is Blocked by Regulators
Source: New York Times (C4)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/28hdtv.html
Author: Edmund Andrews
Issue: Antitrust/Digital TV
Description: The European Commission has blocked a digital television
alliance between Bertelsmann AG, Germany's giant publishing and media
conglomerate; Deutsche Telekom AG, the nation's telephone and cable
television company, and the Kirch Group, which owns the German rights to
billions of dollars worth of television programs and movies. The three
wanted to offer an array of pay-TV services including movies and sports and
dozens of television channels. Germany is the biggest television market in
Europe.

** Internet **

Title: MCI Plans to Sell Internet Assets To British Firm
Source: Washington Post (C1,C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/28/167l-052898-idx.html
Author: Mike Mills
Issue: Merger
Description: MCI Communications Corp. plans to announce the sale of its
Internet facilities to Cable & Wireless PLC of Britain. Sources familiar
with the case say that MCI hopes the deal will help facilitate approval by
European regulators of the company's merger with WorldCom Inc.

Title: Microsoft Will Let Gateway Alter Screen
Source: Washington Post (C3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/28/169l-052898-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Browsers
Description: Gateway 2000 Inc., maker of personal computers, announced
yesterday that it "won a key concession" from Microsoft Corp. to modify the
screens that computer users first see when they turn on a computer equipped
with Windows 98. Gateway said that the modification would allow the company
to promote its own Internet-access service before users view a directory of
service providers selected by Microsoft. "We're extremely interested in a
high level of personalization and customization for our customers," said
Gateways's chief executive, Ted Waitt. "We don't believe there's one slice
[of Windows] that fits everyone out there."

Title: Sick of Junk E-Mail? Here Are Some Tips for Fighting Back
Source: Wall Street Journal (B7)
http://wsj.com/
Author: Rebecca Quick
Issue: E-Mail
Description: One of life's little annoyances (sometimes not so little) are
those irritating on-line pitches better known as spam. Rather than spend
your time waiting for the government to step in there are some common sense
rules you can employ to keep spam from jamming your email box. Email
filtering systems can help you weed out of those spammers lists that you are
already on and scan your mail to get rid of the stuff you don't want. You
also can report the really bothersome ones to their Internet service
provider or the Federal Trade Commission (who is now running a vigorous
campaign to squash the most obnoxious spammers). Other suggested options
are: Try to maintain a low-profile (which can be much easier to say than
do); Don't reply to junk email as that can alert the spammer that they have
a live one that actually reads her/his email; And if nothing else works
close down your existing account and start anew with a fresh, clean slate.

** Arts **

Title: Site Showcases Films Made Especially for the Web
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/artsatlarge/28artsatlarg...
Author: Matthew Mirapaul
Issue: Arts
Description: New Venue is the first online film festival that is dedicated
to showing only movies made expressly for the Web. Each week New Venue will
showcase a brief feature created specifically for computer viewing. The
clips will be playable in either the QuickTime or Flash browser plug-in.
Jason Wishnow, founder of New Venue, said about the project: "I thought that
if filmmakers were to pay attention to the major constraints for movies on
the Web -- smaller image size, a lower frame rate, the pixelated quality
that comes out of compression, a difference in audio fidelity, and how it
has to be integrated into the overall Web page -- they might come up with
something very exciting." Since April, more than 40 filmmakers have
submitted flicks. While many seem to still be grappling with the new medium,
Wishnow hopes that "the ground is being laid for something new." The site is
scheduled to officially open on Monday, June 1st, but its producers have
agreed to grant early access to CyberTimes "arts( at )large" readers starting
today. You can access the New Venue site at:
http://dfilm.mpl.net/newvenue/index.html

** Technology **

Title: Lucent Unveils New Products to Expand Its Presence in
Data-Networking Market
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Technology
Description: Lucent Technologies Inc. has unveiled a group of products that
will help telecommunications carriers manage their voice and data traffic
over their networks. The new system is expected to boost Lucent's bid to
compete with other computer-networking companies.
*********

Universal Service
Proposals to Revise the Methodology for Determining
Universal Service Support (FCC)
Consumer Groups Balk at School Internet Hookup Plan (WP)

Publishing/EdTech
Sales of Textbooks Continuing to Defy Gloomy Predictions (NYT)

Campaigns
In California Politics, Web May Be Antidote to Money (CyberTimes)

Public TV Wins in High Court (B&C)

Minorities
Broadcasters Devising Diversity Plans (B&C)
EEO Rules Remain, for Now (B&C)

Television/Cable
The Neighborly Newscasts (WP)
Kids TV Crackdown (B&C)
High-Speed 'Net for Small Systems' (B&C)
Rate Ruling Effect Seen as Slight (B&C)

Radio
Justice Studies More Radio Mergers (B&C)
Lucent Presses Forward on DAB (B&C)

Jobs
Jobs Out of Reach for Detroiters Without Wheels (NYT)
The Tech Life: All Work? No, Play! (WP)

E-Commerce
It's Time for Banks to Dive Into E-Commerce, a Pioneer Says
(CyberTimes)

Mergers
Stake in Jones Intercable Being Sold To Comcast (NYT)
Hearst Is Paying $1.1 Billion For Pulitzer's Broadcast Unit (NYT)
BCI to Sell Comcast a 30% Interest In Jones Intercable for $500
Million (WSJ)

Privacy
For sale: Any data firms know about you (ChiTrib)

Antitrust
U.S. May Add Charges to Microsoft Case (WSJ)

Also at the FCC
Galaxy 4 Satellite
US West/Ameritech/Quest Agreement
Cramming
USAC

** Universal Service **

Title: Proposals to Revise the Methodology for Determining
Universal Service Support
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da980987.wp
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da980987.pdf
Issue: Universal Service
Description: "The Federal Communications Commission will hold an en banc
hearing on Monday, June 8, 1998, from 9:30 a.m. to 4:30 pm, in the
Commission meeting room, Room 856 at 1919 M. Street, N.W., Washington, D.C.
The Commission has invited the state members of the Federal-State Joint
Board on Universal Service to also preside at this en banc. At the en banc
hearing, the Commission and the state members of the Joint Board will review
certain proposals for revising the methodology for determining federal
universal service support for non-rural carriers. The Commission initially
decided in the Universal Service Order that the federal fund would provide
at least 25 percent of the total support necessary for non-rural carriers
(25/75 decision), beginning January 1, 1999. Recently, the Commission
stated in its Report to Congress on Universal Service that it would
reconsider the share of federal support before implementing the new high
cost support mechanism."

Title: Consumer Groups Balk at School Internet Hookup Plan
Source: Washington Post (D11,D12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/26/056l-052698-idx.html
Author: Mike Mills
Issue: Schools & Libraries
Description: The Consumer Federation of America, Consumers Union and groups
representing business telephone users, last week asked regulators at the FCC
to stop funding to wire schools and libraries to the Internet. The coalition
of consumer groups said in letters that long-distance telephone rates should
first be pushed downward and no new fees should be added to pay for the
program. The groups want the FCC to cut more than $1 billion annually from
"access charges" that long-distance carriers are required to pay to local
phone companies to begin and end long- distance calls. They then want the
money saved from the access-charge reductions to be applied toward wiring
schools and libraries, and lowering long-distance rates. "Once the FCC
eliminates these inappropriate charges and brings interstate access charges
down to cost, there will be plenty of money available to fully fund all
universal service programs and reduce long-distance rates substantially,"
said the letter by Mark Cooper, research director of the Consumer Federation
of America. The American Library Assoc. has urged the FCC not to delay or
reduce funding to the schools and libraries program. "Schools and libraries
should not be held hostage to other telecommunications policy disputes,"
said Anne Bryant, executive director of the National School Boards
Association. "We believe the cost to the industry for support of schools and
libraries has been balanced by reductions in access charges," wrote Larry
Irving, assistant commerce secretary for telecommunications in a letter to
the FCC. "The commission should endeavor to fund the program with no
additional costs or pass-through to the customers." In any event," Irving's
letter continues, "the cost to telecommunications carriers to fund discounts
to schools, libraries, and rural health care centers at the current demand
levels is no more than $1 per month, and therefore, under no circumstances,
should consumers be charged anymore."

** Publishing/EdTech **

Title: Sales of Textbooks Continuing to Defy Gloomy Predictions
Source: New York Times (A1)
http://www.nytimes.com/yr/mo/day/news/financial/textbook-future.html
Author: Doreen Carvajal
Issue: Publishing/EdTech
Description: The US book market saw the strongest gains last year in
textbooks and instructional materials. Sales of elementary school books
increased 13% to $3 billion; college texts sales rose by 7.4%, to $2.7
billion. The overall US book market is $21 billion. The trend "belies
longstanding fears in the publishing industry that the printed page is
steadily losing favor to the electronic monitor." Libraries are also
purchasing more books. According to the American Library Association, more
than 85% of the almost 9,000 library systems in the US are reporting budget
increases for fiscal year '96. "In the late 1980s and early 1990s much of
the talk about education centered on the emerging technologies -- that the
book was dead and traditional publishing was out," said Patrick J. Quinn, of
Simba Information Inc., a market research firm. "And now, through all the
hype and hoopla about it, textbooks have actually started to sell at a
brisker pace."

** Campaigns **

Title: In California Politics, Web May Be Antidote to Money
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/25democracy.html
Author: Rebecca Fairly Raney
Issue: Campaigns
Description: The Democracy Network, a branch of the nonprofit Center for
Governmental Studies in Los Angeles, is planning to set up election sites in
ten states this year in partnership with the League of Women Voters and
other groups. After two years of trial and error, the group will begin
posting election material online. The main focus of the Web sites will
revolve around an online format where candidates can post their positions on
election issues. "The problem with television is that is squeezes it down to
the front-runners," said Tracy Westen, president of the Center for
Governmental Studies. "This technology has the capability of substantially
improving the dialogue over what television does."

Title: Public TV Wins in High Court
Source: Broadcasting&Cable (p34)
http://www.broadcastingcable.com/
Author: Dan Trigoboff
Issue: Campaigns
Description: "The Supreme Court held last week that state-owned public TV
stations may exclude minor political candidates from on-air debates, if the
decision is not based on the candidates' views. The case was closely watched
by politicians and broadcasters, since it appeared to pit the rights of
broadcasters to control the airwaves against the rights of fringe candidates
to air their views."

** Minorities **

Title: Broadcasters Devising Diversity Plans
Source: Broadcasting&Cable (p16)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Minorities
Description: In response to FCC Chairman Bill Kennard's call last month for
ideas on how to promote diversity in broadcasting, the National Assoc. of
Broadcasters (NAB) and individual broadcasters plan to introduce a series of
initiatives established to boost recruitment of minorities and women and to
further station ownership by those groups. The first of those programs will
be an equal employment opportunity (EEO) exchange of ideas at NAB
headquarters on June 8.

Title: EEO Rules Remain, for Now
Source: Broadcasting&Cable (p19)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Minorities
Description: Last month, a three-judge panel of the U.S. Court of Appeals in
Washington found most of the FCC's EEO policy unconstitutional. Regulators
are currently seeking a rehearing by all 11 judges at the appeals court.
While the commission pursues the appeal, the rules will stay in effect. "We
will continue to enforce them," said Mass Media Bureau Chief Roy Stewart
last week. "I'm very happy," said civil rights lawyer, David Honig, of the
FCC's decision to challenge last month's court ruling.

** Television/Cable **

Title: The Neighborly Newscasts
Source: Washington Post (C1,C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/26/044l-052698-idx.html
Author: Howard Kurtz
Issue: Local TV News
Description: A two-week examination by the WPost of the 5 pm newscasts on
local DC television stations suggests that local TV news programs have moved
into "a softer, user-friendly, market-tested phase." Howard Kurtz, writes in
this article that "for more than two decades, smiling anchors have engaged
in harmless banter. And reporters have long done live stand-ups from street
corners where crimes were committed hours earlier. But now the stations are
consciously carving out a kinder, gentler niche as the purveyor of consumer
advice and the chronicler of suburban lifestyles -- an approach very
different from the more straightforward, sometimes impersonal tone of
newspapers."

Title: Kids TV Crackdown
Source: Broadcasting&Cable (Washington Watch-p20)
http://www.broadcastingcable.com/
Author: Paige Albiniak & Chris McConnell
Issue: Television
Description: Last week the FCC's Mass Media Bureau said it will start
watching some television to ensure that stations comply with FCC limits on
commercials aired during children's programming. After a review of current
license renewal applications, regulators said that 26 percent have exceeded
the limit. "This level of noncompliance is unacceptable and must be
remedied," the bureau said in a public notice last week.

Title: High-Speed 'Net for Small Systems'
Source: Broadcasting&Cable (p46)
http://www.broadcastingcable.com/
Author: Price Colman
Issue: Cable/Internet
Description: Tele-Communications Inc. is developing a system that would use
a satellite to connect smaller systems to cable "Internet backbones" such as
( at )Home Network. TCI is hoping to ensure that its small systems can "keep
pace" in the high-speed data race. "We're working pretty hard at a strategy
for connectivity for high-speed data so that even our smallest systems can
be virtually presents at a major data hub with access to a high-speed
service," said TCI Chairman John Malone.

Title: Rate Ruling Effect Seen as Slight
Source: Broadcasting&Cable (p77)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Cable
Description: Cable companies won a court victory this past Friday against
the FCC's rate regulation rules. Time Warner and other companies had
challenged a 1996 decision that dealt with costs operators incurred between
Sept. 30, 1992 and the date that systems became subject to rate regulation.
Originally, operators were barred from recovering costs from the "gap
period," but the U.S. Court of Appeals in Washington said they should be
allowed to do so. Lawyers predict that the ruling will have little impact on
rates.

** Radio **

Title: Justice Studies More Radio Mergers
Source: Broadcasting&Cable (p19)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Radio
Description: Regulators at the Justice Dept. have decided to review up to
six radio mergers that have "raised red flags" with FCC officials. In
discussions with the Justice Dept., FCC officials highlighted several
pending mergers that would give companies control over more than half of a
local radio advertising market.

Title: Lucent Presses Forward on DAB
Source: Broadcasting&Cable (p41)
http://www.broadcastingcable.com/
Author: John Merli
Issue: Digital Radio
Description: Lucent Technologies announced that its Lucent Digital Radio
venture is working to deliver In-Band On-Channel (IBOC) systems that will
place both analog and digital signals within the existing spectrum. The new
technology will allow broadcasters to introduce digital sound to listeners
on their existing dial positions using current antennas and transmitters.

** Jobs **

Title: Jobs Out of Reach for Detroiters Without Wheels
Source: New York Times (A12)
http://www.nytimes.com/yr/mo/day/news/national/suburban-car-bereft.html
Author: Robyn Meredith
Issue: Jobs
Description: In Detroit, the unemployment rate is 7.2% -- more than double
the unemployment rate in suburbs. Detroit ranks last in public
transportation funding among the largest 20 metropolitan areas nationwide.
For low-income people in the Motor City, the price of a car may be out of
reach and a 25 minute car ride to a job in the suburbs may turn out to be a
90 minute bus ordeal. The situation makes it harder for suburban businesses
to hire entry-level workers. Bruce Katz, director of the Center on Urban and
Metropolitan Policy at the Brookings Institution, says the mismatch is
maddening because it "not only undermines the ability of people to get to
work in the morning in a timely way but undermines the ability of
corporations to hire workers."

Title: The Tech Life: All Work? No, Play!
Source: Washington Post (D11,D13)
http://www.washingtonpost.com/wp-srv/WPlate/1998-05/26/057l-052698-idx.html
Author: Stephanie Stoughton
Issue: Jobs
Description: As technology firms are beginning to offer "new forms of
lifestyle benefits" as they compete for hard-to-find computer programmers,
technicians, network designers and software engineers. Many companies are
choosing to build large, campus-style complexes that offer everything from
restaurants, hotels, stores and health clubs, to places to jog, bike and
hike. Such perks aren't just about making workers happy, they're about
"keeping them close" to the mother ship, said Robert Templin, president of
Virginia's Center for Innovative Technology. Some companies also are
offering stock options and 401(k) retirement savings plans in an effort to
keep these sought after employees on board.

** E-Commerce **

Title: It's Time for Banks to Dive Into E-Commerce, a Pioneer Says
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/05/cyber/articles/26commerce.html
Author: Bjorn Kassoe Anderson
Issue: E-Commerce
Description: The banking industry could easily transform electronic commerce
into a mass phenomenon if they better understood how to sell technology,
according to one of the pioneers and top experts in the field. "Within the
next few years, we'll see applications that are so compelling for digital
consumers and merchants that eventually the light bulb will go off for the
banks," said Steve Mott, former senior vice president of electronic commerce
for MasterCard. Mott points out that at the moment most banks have the
wait-and-see strategy when it comes to e-commerce. But this may soon change
due to pressure from new commercial interests establishing themselves on the
Internet.

** Mergers **

Title: Stake in Jones Intercable Being Sold To Comcast
Source: New York Times (C3)
http://www.nytimes.com/
Issue: Cable
Description: The Comcast Corporation, which operates cable systems in
Baltimore, has purchased a 37% stake of Jones Intercable, a cable operator
whose strength is in systems surrounding Washington. Comcast will pay $500
million or more to BCE Inc for the stake. BCE sued Jones last year to stop
the company from using an Internet service run by the chairman of Jones.
Comcast is the 4th largest cable company in the country with 4.4 million
subscribers. It also owns a 15% stake in Sprint PCS and 10% of Primestar.

Title: Hearst Is Paying $1.1 Billion For Pulitzer's Broadcast Unit
Source: New York Times (C9)
http://www.nytimes.com/
Author: Allen Myerson
Issue: Mergers/Broadcasting
Description: Hearst-Argyle Television will pay $1.15 billion in stock and
assume $700 million in debt for the television and radio assets of the
Pulitzer Publishing Corporation. Pulitzer owns nine network-affiliated
television stations and five radio stations. The deal will make
Hearst-Argyle the second-largest non-network owned group -- reaching 16.5%
of the national TV audience. Myerson writes, "Prices for radio and
television groups have been climbing in recent years as these industries
have increasing consolidated. National advertisers strongly prefer dealing
with companies that can give them a large share of the national market."

Title: BCI to Sell Comcast a 30% Interest In Jones Intercable for $500 Million
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Gordon Fairclough & Leslie Cauley
Issue: Partnership
Description: Cable-television company, Comcast, announced it would acquire a
30 percent stake in Jones Intercable Inc. for $500 million from BCI Telecom
Holding Inc. of Canada. The deal would give Comcast a significant part of
Jone's "large and technologically advanced" cable system. Jones Intercable
has about one million subscribers, many located in the Washington D.C. suburbs.

** Privacy **

Title: For sale: Any data firms know about you
Source: Chicago Tribune (p.1)
http://chicago.tribune.com/news/nationworld/article/0,1051,CTT-20797,00....
Author: Frank James
Issue: Privacy
Description: Commerce Secretary William Daley will report to President
Clinton on corporate America's progress on protecting consumer information.
A senior administration official has said, "American business is not the
most pro-active animal in the world." Companies are not addressing privacy
concerns like collecting information from children. Since self-regulation
does not seem to be working, the administration may have to consider other
alternatives.

** Antitrust **

Title: U.S. May Add Charges to Microsoft Case
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John R. Wilke & David Bank
Issue: Antitrust
Description: Federal officials are considering adding a charge to its
antitrust suit against Microsoft Corp. The charge, already part of the state
suit, would be unfair pricing by Microsoft of its Office software package.
U.S. District Judge Thomas Penfield Jackson said Friday that the case will
go to trial Sept. 8. Judge Penfield also said he will consolidate the
Justice Dept.'s antitrust suit with the separate suit brought by 20 states.

** Also at the FCC: **

Chairman Kennard's Statement on the Galaxy 4 Satellite.
http://www.fcc.gov/Speeches/Kennard/Statements/stwek835.html

Chairman Kennard's Statement on US West/Ameritech/Quest Agreement.
http://www.fcc.gov/Speeches/Kennard/Statements/stwek834.html

Chairman Kennard's Statement on Industry Discussions on Cramming.
http://www.fcc.gov/Speeches/Kennard/Statements/stwek834.html

Press Statement of Commissioner Harold Furchtgott-Roth (re: USAC).
http://www.fcc.gov/Speeches/Furchtgott_Roth/Statements/sthfr826.html
*********

Universal Service
Collection Amounts for Schools and Libraries and
Rural Health Care Providers (NTIA)
FCC Researchers Find Flaw in Universal Service
Hatfield Cost Model (TelecomAM)

Telephony
Demystifying telephone bills (ChiTrib)
Ameritech Willing to Accept AT&T as Marketing Partner (TelecomAM)

Satellites
Motorola Drops Plan for Its Own Data Satellites (NYT)

Broadcast Regulation
Broadcast Views (FCC)

Mergers
$10.6 Billion Seagram Deal for Polygram (NYT)
Zapata Finds Its Internet Bid Is Not Taken Seriously (NYT)

Privacy vs. 1st Amendment
Seeking new privacy law, stars cite media excesses (ChiTrib)

** Universal Service **

Title: Collection Amounts for Schools and Libraries and
Rural Health Care Providers
Source: NTIA
http://www.ntia.doc.gov/ntiahome/fccfilings/51598cc96_45ltr.htm
Author: Larry Irving
Issue: Universal Service
Description: NTIA filed a letter in CC Docket No. 96-45 on behalf of the
Clinton Administration in response to questions raised in the Report to
Congress, dated May 8, 1998, regarding universal service support mechanisms.
"...we must proceed with the rollout of the schools and libraries program, a
crucial aspect of universal service. We believe that the American people,
through their elected representatives in Congress, understood that by
ensuring that our schools and libraries have affordable access to important
telecommunication technologies, we would be ensuring our nation's future.
All of our children, in every school in our nation, must have access to the
tools of our time. No school or child must be excluded from the benefits of
the information age because of income or geographical area." [Full text of
this letter will be posted to this listserv today]

Title: FCC Researchers Find Flaw in Universal Service Hatfield Cost Model
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: Sprint has warned the Federal Communications Commission that
the Hatfield Cost Model (HCM) may underestimate the costs of providing
universal service in rural areas. After doing some research of its own, the
FCC may agree and is asking the model's sponsors -- AT&T and MCI -- to give
their views on the seriousness of the problem and to offer suggestions for
correcting it. The problem seems to be that the HCM underestimates the
distance between customers and feeder cables in rural areas.

** Telephony **

Title: Demystifying telephone bills
Source: Chicago Tribune (Sec 3, p.1)
http://chicago.tribune.com/business/businessnews/article/0,1051,ART-8947,00
.html
Author: Jon Van
Issue: Telephone Regulation
Description: "There's a lot of confusion out there, and we've got to do
something to quell it," said Federal Communications Commission Chairman Bill
Kennard. The FCC may propose new rules to simplify customer phone bills.
Some phone companies are already getting the message from consumers and are
doing something about it. Ameritech, for example, is reformatting bills to
make it easier for customers to detect "slamming" and "cramming" abuses.

Title: Ameritech Willing to Accept AT&T as Marketing Partner
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance/Competition
Description: Ameritech has indicated that the company will accept AT&T as a
marketing partner if AT&T "is willing to match the exact terms and
conditions" that Qwest agreed to in a similar arrangement. "If AT&T is
sincerely willing to help us offer equal convenience, simplicity and value
to customers, then we call on them to match the exact terms and conditions
that Qwest already has agreed to." BellSouth says that it will study AT&T's
offer.

** Satellites **

Title: Motorola Drops Plan for Its Own Data Satellites
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/05/biztech/articles/22satellite.html
Author: Seth Schiesel
Issue: Satellite/Infrastructure
Description: Motorola has announced it will scrap its own $12.9 billion
satellite network plan to join a rival project to build an "Internet in the
Sky." Motorola will invest $750 million in Teledesic, the company founded by
Microsoft's Bill Gates and cellular phone pioneer Craig McCaw. Matra Marconi
Space, a joint venture of General Electric Company of Britain and Groupe
Lagardere of France, also announced it will partner with Teledesic. An
industry analyst said: There was a decision from both of them that there was
probably no room for two guys in the market and maybe not for one. It's the
blind leading the visibly impaired."

** Broadcast Regulation **

Title: Broadcast Views
Source: FCC
http://www.fcc.gov/Speeches/Tristani/spgt808.html
Author: Commissioner Tristani
Issue: Broadcast Regulation
Description: "I wanted to start with a question a lot of people around
Washington have been asking: why should broadcasters be treated any
differently under the First Amendment than other media voices like
newspapers? The short answer is because the Supreme Court said so. In Red
Lion, the Supreme Court said: 'Where there are substantially more
individuals who want to broadcast than there are frequencies to allocate, it
is idle to posit an unbridgeable First Amendment right to broadcast
comparable to the right of every individual to speak, write or publish.' The
Court added: 'There is no sanctuary in the First Amendment for unlimited
private censorship in a medium not open to all.' I know what a lot of you
are probably thinking. Yeah, sure, Red Lion. Hasn't that case, and the whole
scarcity rationale it relied on, been thoroughly discredited? Isn't Red Lion
just one of those Warren Court relics that would never be upheld today? If
you only looked at law reviews and the stuff coming out of Washington think
tanks, you might think so. But apparently word of Red Lion's demise hasn't
reached the only audience that matters -- the Supreme Court. In both the
1994 Turner decision and the 1997 Reno decision, the Court expressly
reaffirmed Red Lion and the scarcity rationale as justifying more intrusive
regulation of broadcasters than newspapers and other media. I don't think
the Commission should be in the business of questioning the Court's judgment."

** Mergers **

Title: $10.6 Billion Seagram Deal for Polygram
Source: New York Times (C1)
http://www.nytimes.com/yr/mo/day/news/financial/polygram-seagram.html
Author: Geraldine Fabrikant
Issue: Mergers
Description: After weeks of negotiations, the Seagram Company has agreed to
buy one of the largest music companies, Polygram, for $10.6 billion in cash
and stock. Seagram is transitioning from a beverage and spirits powerhouse
into a media giant; the company also said it would sell Tropicana Products
yesterday. After yesterday's announce transactions are completed, Seagram
will derive two-thirds of its revenues from the entertainment business. [And
to think, it all started with Bruce Willis singing about wine coolers...]

Title: Zapata Finds Its Internet Bid Is Not Taken Seriously
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/22zapata-marketp
lace.html
Author: Reed Abelson
Issue: Anti-mergers
Description: Oil-and-gas company turned fishmeal producer [we don't have to
make *all* of this up] Zapata wants into the Internet business. The company
changed its name to Zap and announced yesterday that it wanted to purchase
the Internet search engine Excite. Excite has quickly said, Thanks, but no
thanks -- even though Zap was offering $72 per share, a 20% premium over
Excite's closing price on Wednesday. "Excite is too big a fish for a
fish-oil company to swallow as a way to get into the Internet," said a rep
from an venture capital firm. "It is amusingly backward."

** Privacy vs. 1st Amendment **

Title: Seeking new privacy law, stars cite media excesses
Source: Chicago Tribune (Sec 1, p.3)
http://chicago.tribune.com
Author: Associated Press
Issue: Privacy/Journalism/First Amendment
Description: Michael J. Fox and Paul Reiser testified before the House
Judiciary Committee Thursday as the Committee wrestles with how to preserve
1st Amendment rights while protecting privacy right as well. Committee
Chairman Henry Hyde (R-IL) observed that freedom of the press "does not
confer a license to engage in criminal conduct in the interest of gathering
news." Pending legislation would bar photographers to threaten or cause
bodily injury in the pursuit of photographs or recordings. Penn State
University professor Robert Richards says the bills are overly broad and
vague and "could produce a deleterious effect on the news-gathering process."
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...and we are outta here. See you *Tuesday* Enjoy the holiday weekend!