Communications-related Headlines for 3/25/98
Regulation
TelecomAM: Five Senators Tell Kennard That Internet Shouldn't Be Regulated
TelecomAM: White House Backs Flexible Requirement For Internet Filtering
TelecomAM: In Malta, Kennard Outlines 'Essential Ingredients' For Regulation
FCC: Building a Global Information Community for the 21st Century
Internet
WSJ: SEC Issues Guidelines For WebSite Creators Offering Securities
WSJ: Netscape Plans to Reorganize Division To Concentrate on Business
From Web
NYT: Baseball Joins the NBA and NHL with Online Broadcasts
NYT: Boy's Web Site Becomes a Domain Name Cause
WP: Sun Wins First Legal Squirmish With Microsoft Over Java
WSJ: Sun Wins Ruling Against Microsoft's Use Of Java as Similar H-P
Battle Looms
Universal Service
FCC: Second Quarter 1998 Universal Service Contribution Factor
Long Distance
TelecomAM: McCain: Kennard Letter Is 'Step Forward' But Lacks Specifics
Spectrum/Auctions
WP: Sprint PCS To Launch New Service
WSJ: Sale of Wireless Frequencies Looks Like A Bust
Television
FCC: Round Pegs in Square Holes
FCC: Digital TV Express
WSJ: General Instrument is Expected to Select Motorola, QED Chips for
Set-Top Box
International
NYT: Random House Sale Shakes Up Literary World
WSJ: Telus and AT&T In Canada Discuss A 'Combination'
** Regulation **
Title: Five Senators Tell Kennard That Internet Shouldn't Be Regulated
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Internet Regulation
Description: Five more senators have told FCC Chairman Kennard that one of
the Telecom Act's purposes was to prevent the Internet from being regulated.
In a letter dated Mar. 20, Sens. Spencer Abraham (R-MI), John Ashcroft
(R-MO), Wendell Ford (D-KY), John Kerry (D-MA) and Ron Wyden (D-OR) said
that of the FCC reverses course and subjects information services to phone
regulation, "it would chill the growth and development of advanced services
to the detriment of our economic and educational well-being." Senate
Appropriations Committee Chairman Ted Stevens (R-AK) has argued that,
because the Internet circumvents the switched network, it poses a danger to
universal service.
Title: White House Backs Flexible Requirement For Internet Filtering
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service/Internet Regulation
Description: The White House endorsed legislation that would require schools
and libraries receiving federal subsidies for Internet wiring to develop
plans to protect children from inappropriate content, Vice President Al Gore
said. But he said the Administration supports a version that "will empower
schools to make decisions based on local values" rather than taking "a
one-size-fits-all approach."
Title: In Malta, Kennard Outlines 'Essential Ingredients' For Regulation
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Regulation
Description: FCC Chairman Kennard used his first overseas speech as chairman
to tell telecom regulators that they should "take advantage of private
capital, drive development and innovation with competition and set up
transparent and independent regulatory regimes that will attract private
investment." These are the "essential ingredients" for achieving universal
access and universal service," he said. Regulators still "have a critical
role still to play in all of this," Kennard said. Although the gov't. is "no
longer suited" to provide services, "it must act as a guardian of
competition and a champion of new entrants in the market." To ensure
competition, regulators must be "independent of the incumbent operator" and
"shielded from political pressure."
Title: Building a Global Information Community for the 21st Century
Source: FCC
http://www.fcc.gov/Speeches/Kennard/spwek810.html
Author: FCC Chairman William E. Kennard
Issue: Regulation
Description: "The digital information age is profoundly changing the way we
communicate and the way we live our lives. It is transforming many aspects
of daily life -- from how we do business to how we teach our children and
administer health care. It is an engine of job creation and the lifeline of
the global economy. The ability of individuals, communities and nations to
participate in the global community will therefore increasingly be shaped by
telecommunications policy."
** Internet **
Title: SEC Issues Guidelines For WebSite Creators Offering Securities
Source: Wall Street Journal (B9A)
http://wsj.com/
Issue: Electronic Commerce
Description: The Securities and Exchange Commission has issued guidelines to
help foreign creators of World Wide Web sites avoid running afoul of U.S.
registration laws that govern the offer and sale of securities. The
guidelines were given preliminary commission approval last month, but
details were released yesterday. They form part of a wider-ranging effort by
the agency to come to grips with how securities laws apply to the Internet.
U.S. securities laws impose strict registration conditions on the offering
and sale of securities to U.S. investors. Because Web sites created by
foreign companies can be accessed by U.S. investors, regardless of whether
U.S. investors are targeted, they could theoretically fall under the SEC's
jurisdiction. The new guidelines are designed to apply only to Web sites and
not interactive communications such as e-mail.
Title: Netscape Plans to Reorganize Division To Concentrate on Business
From Web
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Kara Swisher
Issue: Corporate Retrenchment
Description: Netscape is expected to announce a reorganization today
creating a new division focusing exclusively on its Web-site business. The
move underscores the strategic and financial importance that Netscape
officials are placing on its popular Internet site. The division will be
headed by Mike Homer, who has long been in charge of sales and marketing at
the company. Under the new structure, Mr. Homer will become the executive
vice president and general manager of the Web division, which will include
group engineering, sales, marketing and other employees who will be devoted
exclusively to Netscape's World Wide Web presence.
Title: Baseball Joins the NBA and NHL with Online Broadcasts
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/25sport.html
Author: Chris Sandlund
Issue: Internet Content
Description: Major League Baseball will be joining the ranks of the National
Basketball Association and National Hockey League when it begins to
re-transmit radio feeds over the Internet for all 2,430 of this season's
games. Currently, both the NBA and NHL are in the midst of re-broadcasting
more than 1,000 games from this year's season. "We're averaging 500,000
unique listens per month," says Michele Mees, the NHL's manager of public
relations. "Displaces fans are the majority coming to the Internet for
games." Kevin Fitzpatrick, Major League Baseballs manager of new media notes
another market for day games. "It's also for the Cardinals fan who's in a
[downtown St. Louis] office building and can't pick up the feed."
Title: Boy's Web Site Becomes a Domain Name Cause
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/25pokey.html
Author: Jeri Clausing
Issue: Internet Domain
Description: Chris Van Allen, a 12-year-old boy from PA, has a Web site with
the domain "pokey.org," titled after his nickname since birth, Pokey. Yet
Prema Toy Co., who holds the trademarks to Gumby and Pokey, requested
yesterday that Network Solutions, the domain registry company, put
"pokey.org" on hold and said it intends to deactivate the domain which is
currently registered to Chris Van Allen, because Prema holds the federal
trademark to that name. This action has sparked concern among "Internet
factions" who fear with the "evolution" of Internet governance trademark
holders will be favored over those people who may have initially laid claim
to a domain name. The government plan, put together by Ira Magaziner,
President Clinton's Internet czar, does not suggest any solutions to
problems like Christopher's, but it does call for "further study of the
issues and development of international policy in this area that has divided
Internet interests around the world." Dave Van Allen, Christopher's father,
said the case illustrates how fragile the liability issues of domain
registration can be. "There is no legal precedent on this, and we're
certainly not looking to be the ones to set legal precedent," He said. "But
if we're the ones to make more people aware of this issue, than that's a
good thing."
Title: Sun Wins First Legal Squirmish With Microsoft Over Java
Source: Washington Post (C13)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/25/054l-032598-idx.html
Author: Rajiv Chandrasekaran
Issue: Legal Issues
Description: Sun Microsystems Inc. won the first round of a legal dispute
with Microsoft Corp. yesterday over the Sun developed Internet programming
technology called Java. U.S. District Judge Ronald H. Whyte in San Jose,
issued a preliminary injunction preventing Microsoft from inscribing its
software products with Sun's Java logo. The case began when Sun sued
Microsoft this past October alleging that Microsoft is violating terms of a
licensing contract with Sun by "altering Java technology that is included in
Microsoft's Windows computer operating system."
Title: Sun Wins Ruling Against Microsoft's Use Of Java as Similar H-P
Battle Looms
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Lee Gomes
Issue: Legal Issues
Description: Sun won a skirmish in its legal battle with Microsoft over the
Java computer language, while a possible confrontation looms with
Hewlett-Packard. U.S. District Judge Ronald Whyte ruled that Microsoft can't
use Sun's Java logo in any of its marketing material. Microsoft said it
would immediately comply with the order. The Microsoft ruling was a narrow
one, and said Microsoft wasn't required to make any change in its actual
Java software or its Java strategy. In fact, Microsoft said it plans to
continue to claim in its marketing materials that its software is "Java
compatible," but without using Sun's logo, said Tom Burt, an associate
general counsel at Microsoft.
** Universal Service **
Title: Second Quarter 1998 Universal Service Contribution Factor
Source: FCC
http://www.fcc.gov/Speeches/Furchtgott_Roth/Statements/sthfr812.html
Author: Commissioner Furchtgott-Roth
Issue: Universal Service
Description: "By taking no further action, the Common Carrier Bureau allowed
the proposed universal service contribution factors for the second quarter
of 1998 announced in the Public Notice released February 27, 1998, to go
into effect today. For a variety of reasons, I objected to these
contribution factors when released and continue to be concerned about the
Bureau's calculations. Because of these concerns and despite the fact that
the Commission may be able to resolve some of these issues in the upcoming
report to Congress as required by the 1998 appropriations legislation, Pub.
L. No. 105-119, I cannot support the universal service contribution factors
as established by the Bureau."
** Long Distance **
Title: McCain: Kennard Letter Is 'Step Forward' But Lacks Specifics
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: The FCC has taken a "significant step forward" by identifying
factors "relevant" to Bell companies' long distance applications, but hasn't
stated "what the carriers actually must do to meet each of those relevant
factors," Senate Commerce Committee Chairman John McCain (R-AZ) said. He
said Commission Chairman Kennard's response to Sen McCain's inquiry on the
Section 271 14-point checklist demonstrates that the agency has implemented
the process in a way that "demands that it conduct extremely detailed
evaluations of a host of complexities." Because the FCC has chosen to make
the application process so complex, Sen McCain said, "fundamental fairness"
requires it to articulate more precisely what "levels of compliance" are
needed to meet each of the "myriad requirements."
** Spectrum/Auctions **
Title: Sprint PCS To Launch New Service
Source: Washington Post (C11,C15)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/25/046l-032598-idx.html
Author: Mike Mills
Issue: Spectrum
Description: Sprint PCS will launch a new product in the DC-Baltimore area
today which will offer improvements over its current product, Sprint
Spectrum. The new product, called Sprint PCS, will allow customers to "use
the same all-digital Sprint network in 148 cities nationwide, with
relatively low uniform charges for 'roaming' with the phone outside this area."
Title: Sale of Wireless Frequencies Looks Like A Bust
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John Simons
Issue: Spectrum
Description: As bidding winds to a close, the government's largest auction
of wireless frequencies is looking like a disappointment to the telecom
industry. The new technology uses ultrahigh-frequency microwave
transmissions as part of what is called local multipoint distribution
system, LMDS. A number of industry analysts expected telecom carriers to pay
close to $4 billion for licenses to a vast section of radio frequencies that
will allow them to provide inexpensive high-speed voice, video and Internet
connections. But as the bidding ends the auction's gross is a disappointing
$832 million. In any auction buyers naturally try to get the sale item as
cheaply as possible, but the stinginess of the telecom involved in the LMDS
auction is unusual, analysts say.
** Television **
Title: Round Pegs in Square Holes
Source: FCC
http://www.fcc.gov/Speeches/Powell/spmkp805.html
Author: Commissioner Michael K. Powell
Issue: Public Television
Description: "I am continually dismayed that in the debate about television
and its value, or potential, we still hear that T.V. is a wasteland of
mediocre programs, that T.V. has no educational value, that it has no
intellectual value, and that it is not stimulating. These people obviously
need to be introduced to their remote controls, for such programming does
exist, free and over the air, just down the dial on PBS. By any standard,
programs such as Ken Burn's Civil War and Baseball mini-series, Lewis &
Clark, the American Experience, Arthur and the venerable Sesame Street are
precisely the types of quality programs that many bemoan are missing in our
T.V. culture."
Title: Digital TV Express
Source: FCC
http://www.fcc.gov/Speeches/Ness/spsn805.html
Author: Commissioner Susan Ness
Issue: Digital TV
Description: "And as a long-time supporter of public broadcasting, I am
especially proud that PBS has taken a leadership role in shaping and
harnessing the enormous educational potential of digital television. Through
your commitment, tenacity and vision...public broadcasting is at the
forefront of the digital television revolution."
Title: General Instrument is Expected to Select Motorola, QED Chips for
Set-Top Box
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Leslie Cauley
Issue: Cable/Set-Top Boxes
Description: General Instrument Corp. plans to announce that it has selected
Motorola and Quantum Effect Design to supply microprocessors for its new
advanced digital set-top TV devices, knocking Intel out of the running for
now. A third chip maker, Broadcom, has been picked to supply silicon
components that would be used to transmit movies, Internet and Internet
telephony, said David Robinson, VP of General Instrument's digital-network
systems unit. Tele-Communications Inc. recently announced plans to order as
many as 15 million of the new set-top boxes from General Instrument.
** International **
Title: Random House Sale Shakes Up Literary World
Source: New York Times (D1)4
http://www.nytimes.com/yr/mo/day/news/financial/random.html
Author: Doreen Carvajal with Geraldine Fabrikant
Issue: Merger
Description: Since the announcement of Bertelsmann AG's purchase of Random
House yesterday, those affiliated with the publishing industry have been
buzzing with concern over the "what if(s)...". The fact is that Bertelsmann
has a long history of book publishing and has "historically given companies
a tremendous amount of independence and local control." But over the past
few days, publishing figures have suggested that "the consolidation of the
major publishing houses into the world's largest English-language trade
publisher" could signal the acceleration of a relatively new trend. The
trend in mention is a reduction in advances to "midlist" authors who sell
fewer books than top authors with best-seller status. If this continues, the
result could make it increasingly difficult for the "nonstarts" to earn a
literary living. "When there are fewer and fewer publishers of scale, it's
just not good for authors," said Richard Ben Cramer, a Random House writer
who added that he feels depressed about the sale of the company by its
present owners, Advance Publications, a privately held company owned by the
Newhouse family. Bertelsmann executives have said that Random House was
particularly appealing to them because of its reputation for quality
publishing. Thomas Middelhoff, the chief executive-elect of Bertelsmann, has
also sought to downplay any concern over the foreign ownership of Random
House. "I believe that should not be a question," said Middelhoff.
"Bertelsmann works in more than 55 countries. I have only one objective, and
it is one of my priorities for the next 16 years, and that is to reduce a
little bit this German impact."
Title: Telus and AT&T In Canada Discuss A 'Combination'
Source: Wall Street Journal (A10)
http://wsj.com/
Author: Tasmin Carlisle
Issue: Mergers
Description: Telus Corp. said it is holding talks with AT&T's Canadian
affiliate regarding a "possible business combination" that, if realized,
could shake up Canada's telecom industry. The news release follows
speculation by analysts that Telus is preparing to offer as much as one
billion Canadian dollars (US$706 million) to purchase, from three Canadian
banks, a two-thirds stake in AT&T Canada, which is the maximum it is allowed
under Canadian regulations. Analysts said such a transaction could cause a
major realignment of interests within Canada's telecom industry. Currently
Telus is a member of Stentor, an alliance of the country's 10 biggest and
longest-established telephone companies, which competes with such upstarts
as AT&T Canada in the country's long-distance phone market.
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