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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.
*********

Communications-related Headlines for 3/24/98

Universal Service
WSJ: Gore Ties Grants To Schools, Libraries To
Internet Protection
TelecomAM: Furchtgott-Roth Attacks Use of State Funds For
Universal Service

Long Distance
TelecomAM: Kennard Says FCC Already Has Provided
Guidance On Section 271

Free Time for Candidates
WP: FEC Rules Against Perot

Mergers
WSJ: Bertelsmann to Buy Random House
NYT: German Media Giant Will Buy Random House for $1.4 Billion
WP: Random House Sold to German Publisher

Internet
WSJ: Group Contests Plan to Dispense Domain Names
WSJ: Williams Cos. Sues WorldCom Alleging Network Deal Broken

Arts
NYT: Moving Beyond Country Music to a Political Stage

Spectrum
WSJ: Pocket and U.S. Agree On Plan to Allow Sale Of Wireless Licenses
WP: Wireless Phone Firm to Return Licenses

Philanthropy
WP: Bankrolling an Activist Agenda

** Universal Service **

Title: Gore Ties Grants To Schools, Libraries To Internet Protection
Source: Wall Street Journal (A24)
http://wsj.com/
Issue: Universal Service
Description: The White House wants schools and libraries to develop plans to
protect children from inappropriate material on the Internet before they can
receive federal technology grants. In a speech to the Nat'l P.T.A., Vice
President Gore said that "as we connect every school and classroom to the
Internet, we must protect our children from the red-light districts of
cyberspace." Mr. Gore urged Congress to pass legislation making federal
subsidies for school and library technology contingent on such safeguards.
This spring, schools and libraries nationwide are expected to begin
receiving subsidies that will help pay for connections to the Internet
amounting to $2.25 billion a year.

Title: Furchtgott-Roth Attacks Use of State Funds For Universal Service
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: FCC Commissioner Furchtgott-Roth expanded his attack on the
FCC's role in implementing universal service to include its use of
intrastate revenues. "The legality of this approach to calculating
contributions is highly questionable," he said. In a five-page manifesto
released the day second-quarter universal service contribution factors take
effect, Furchgott-Roth defended state authority over intrastate revenues. He
said the law "makes clear" that the use of such monies "are within the
exclusive province of the states."

** Long Distance **

Title: Kennard Says FCC Already Has Provided Guidance On Section 271
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: There's little left to say on what standards Bell companies
need to meet to enter long distance, FCC Chairman Kennard told the Hill in a
letter Telecom A.M. obtained Mar. 23. Responding to the request of Senate
Commerce Committee Chairman John McCain (R-AZ) and Sen. Brownback (R-KS)
that he lay out exactly what Bells must do, Chairman Kennard said the FCC
already has
done so in the course of prior rulemakings. He reiterated his "Golden Rule,"
a rephrasing of the Act's requirement of "nondiscriminatory access": Bell
companies don't need to achieve "perfection" in allowing competitors to sue
their facilities but must "do unto others" as they "would do unto [themselves]."

** Free Time for Candidates **

Title: FEC Rules Against Perot
Source: Washington Post (A17)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/24/054l-032498-idx.html
Author: David S. Broder
Issue: Campaigns
Description: The Federal Election Commission made public yesterday a 5 to 0
decision which overruled a report by FEC general counsel Lawrence M. Noble.
Noble had charged that "the Commission on Presidential Debates and the Dole
and Clinton campaigns had violated the law by their actions in excluding
Perot and the Natural Law party candidate, John Hagelin," in the final
televised debate of the 1996 campaign. No explanation was provided for
yesterday's ruling, but FEC officials said one would be forthcoming.

** Mergers **

Title: Bertelsmann to Buy Random House
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Patrick M. Reilly & Greg Steinmetz
Issue: Mergers
Description: German media giant Bertelsmann AG rocked the publishing world
with plans to buy Random House, Inc. The two companies would combine into a
super-power that would dominate book publishing and wield enormous clout
over retailers, agents, and Hollywood. Bertelsmann and Advanced
Publications, owner of Random House, didn't release terms of the deal. But
Wall Street insiders estimate Bertelsmann is paying between $1.2 billion and
$1.4 billion. The purchase could also help Bertelsmann's chances of becoming
a major force on the Internet. The deal is already prompting some
predictions that Random House's new power will lower the prices authors
receive for their books.

Title: German Media Giant Will Buy Random House for $1.4 Billion
Source: New York Times (A1,D6)
http://www.nytimes.com/yr/mo/day/news/financial/random.html
Author: Doreen Carvajal
Issue: Merger
Description: The German media giant, Bertelsmann, struck an estimated 41.4
billion deal yesterday to buy the "shiny crown jewel of American
publishing," Random House. The deal will increase Bertelsmann's share of the
$21 billion total book market in the U.S from nearly 6 percent to 10
percent. "It's as if the New York Yankees were sold," said Paul Aiken, the
executive director of the Authors Guild. "We're losing one of the major
players at a time when there's been a great deal of concern about
consolidation and fear of book contract cancellations. Our fear is that with
this sort of situation they're going to look for efficiencies and some ways
to cut costs." The merger further increases the power of Bertelsmann, which
currently ranks as the world's third-largest media conglomerate, behind
Disney and Time Warner.

Title: Random House Sold to German Publisher
Source: Washington Post (A1,A9)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/24/071l-032498-idx.html
Author: David Streitfeld and Paul Farhi
Issue: Merger
Description: Bertelsmann, the German media conglomerate, announced yesterday
that it would buy Random House, the "largest and most prominent" American
book publisher, from billionaire S.I. Newhouse. The agreement, estimated to
be worth $1.6 billion, marks another step towards the consolidation of
companies in the publishing industry. Following this deal, only seven major
New York publishing houses will be left -- four owned by foreign conglomerates.

** Internet **

Title: Group Contests Plan to Dispense Domain Names
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Rebecca Quick
Issue: Internet
Description: A nonprofit group of Internet experts is challenging a U.S.
gov't. proposal to change the way the addresses are doled out. The Internet
Council of Registrars, known as CORE, has expressed disagreement with the
government proposal in the past, but yesterday it spoke out more defiantly.
"The Internet doesn't need a plan for the U.S. government to get out of
domain name oversight... it just needs the U.S. government to quietly step
aside," said Alan Hanson, chairman of CORE's exec committee. The Clinton
administration's proposal would create a not-for-profit corporation to
oversee domain names. It would also allow the creation of five new top-level
domain names, a move intended to ease a growing shortage of available names.

Title: Williams Cos. Sues WorldCom Alleging Network Deal Broken
Source: Wall Street Journal (B6)
http://wsj.com/
Issue: Legal Issues/Infrastructure
Description: Williams Cos. sued WorldCom alleging that the big
telecommunications company reneged on several provisions of an agreement
that allows Williams to use a strand of WorldCom's fiber-optic network.
Williams accused WorldCom of failing to comply with key elements of the
agreement, which the companies signed when Williams sold its WilTel
fiber-optic network to WorldCom in 1995 for $2.5 billion. The suit seeks
unspecified compensatory damages and a declaratory judgement ordering
WorldCom to comply with the agreement. Under the agreement, Williams can't
use the strand to compete with WorldCom in certain businesses, including
retail long-distance. But Williams contends that WorldCom has disputed
Williams' right to use the line for Internet traffic. Williams alleged that
WorldCom did so "for purposes of jeopardizing and thwarting" Williams'
relationships with its Internet customers.

** Arts **

Title: Moving Beyond Country Music to a Political Stage
Source: New York Times (3/23/98-B1)
http://www.nytimes.com/yr/mo/day/news/arts/arts-czar.html
Author: Peter Applebome
Issue: Arts
Description: Bill Ivey, who was nominated last month by President Clinton as
chairman for the National Endowment for the Arts, is described by those who
know him as a man who has "a folklorist's heart, an academic's head and a
politician's gut: all qualities he may need at the arts endowment." "Bill
Ivey's genius is that he has been able to speak a variety of different
languages," said Bruce Feiler, author of "Dreaming Out Loud: Garth Brooks,
Wynona Judd, Wade Hayes and the Changing Face of Nashville." "He speaks
politics, he speaks money, he speaks art, and he speaks academics, and those
are all skills he's going to need in Washington. He's a liberal-minded
intellectual who has managed to thrive in a conservative culture, all of
which makes him an ideal person to come to the NEA today." Ivey has declined
to talk about some of the endowment's more controversial issues, saying that
it is not appropriate to comment on matters that will surely come up at his
confirmation hearings, which have yet to be scheduled. But even if his stand
on issues have yet to be clarified, his stand on a Federal role in the arts
is clear. Ivey says that he is a strong believer in a government role for
the arts and is optimistic that the coming millennium will provide an arena
to increase public awareness of, attention on and interest in the nation's
artistic heritage and future.

** Spectrum **

Title: Pocket and U.S. Agree On Plan to Allow Sale Of Wireless Licenses
Source: Wall Street Journal (B6)
http://wsj.com/
Issue: Spectrum
Description: Pocket Communications and the federal gov't. agreed on a
reorganization plan under bankruptcy proceedings that would allow Pocket's
wireless licenses in the Chicago and Dallas markets to be sold. Under the
plan, a yet-to-be-determined company with financial backing from five
communications companies would buy Pocket's 14 wireless-communications
licenses for $359 million. The five companies are Ericsson Inc., Siemens
Telecom Networks, Pacific Eagle Investments, Masa Telecom Inc., and Masa
Telecom Asia Investment. The plan requires bankruptcy-court approval. It
would untangle Pocket's licenses from Chapter 11 bankruptcy proceedings and
let the FCC sell the company's spectrum without losing money. Pocket won the
licenses as part of the FCC's so-called C-block auctions of wireless
spectrum two years ago.

Title: Wireless Phone Firm to Return Licenses
Source: Washington Post (C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/24/026l-032498-idx.html
Author: Mike Mills
Issue: Spectrum
Description: Pocket Communications Inc., a cellular phone company based in
Washington DC, bid $1.4 billion in 1996 auctions to win 43 wireless
licenses. Due to Pocket's inability to pay for them, Pocket, along with its
license-owning subsidiary DCR PCS Inc., will return many of the licenses
back to the federal government and hand the rest over to a new company.
These steps are part of a bankruptcy settlement announced yesterday by the
Federal Communications Commission. The agreement helps to clear up "the most
embarrassing chapter in the FCC's auction program, the 1996 competition for
so-called C-Block licenses. Bids went sky-high to a total of $10.2 billion,
but afterward many of the winners went back to the commission saying they
could not raise the money necessary to pay for the license and build
businesses."

** Philanthropy **

Title: Bankrolling an Activist Agenda
Source: Washington Post (A17)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/24/105l-032498-idx.html
Author: Judith Havemann
Issue: Philanthropy
Description: Paul C. Light, director of Pew Charitable Trusts, is heading up
one of the most activist philanthropic agendas in the nation. Light was
recruited in 1995 to invest foundation resources in "bold political, news
media and administrative experiments to ameliorate," what Pew Trust
President Rebecca W. Rimel calls, a "democratic crisis" in America. Since
that time, Light has "pushed to improve political campaign consulting,
campaign finance and campaign discourse. He has funded an experiment with
campaign codes of conduct, financed a training program for political
candidates and studied the role of polling as well as the sources of
declining trust in government. He has attempted to assess the results of
civic journalism and to encourage civic engagement." As a professor at the
Univ. of Minnesota, a writer at the Brookings Institute, author of 10 books
and innumerable articles, and now with his position at Pew, Paul Light has
become one of the "best-known" scholars on government. "Paul Light is the
most original thinker in the field of public administration today," said
Sen. Daniel Patrick Moynihan (D-NY). For many years "everybody has been
starting up institutes on policy. But policy doesn't get you very far if you
can't make it work," he said.
*********

Communications-related Headlines for 3/23/98

FCC
NYT: All Too Soon, New F.C.C. Chief Finds Warm Welcome Is Cooling

Free Time/Campaign Finance Reform
B&C: Republicans punt on free-airtime block
B&C: Senators give Kennard grief over plans for free airtime
WP: In Calif. Primary, It's TV Time
NYT: Campaign Finance Charades

Television
B&C: FCC to spot-check kids TV commercials
B&C: "Seinfeld" raises bar for syndicators

Ownership
B&C: Kennard looks to restart minority push

Radio
WP: Ready to Launch a Global Radio Network

Long Distance
TelecomAM: Kennard To Send Hill A Roadmap On 14-point Checklist
TelecomAM: Local, Long Distance Carriers Split On MCI
Access Charge Petition
WSJ: SBC's Plan to Expand Long-Distance Service
Stumbles in Oklahoma

Internet
TelecomAM: Ebbers Says Worldcom Doesn't Expect to Give
Up Internet Backbone
TelecomAM: Rep. Cox and Local Officials Agree On Revised
Internet Tax Freedom Act
NYT: A Benign Declaration Treated as Revolutionary
NYT: Concerns Raised by Unregulated Drug Sales on Web
NYT: Business Ethics on the Web
WP: Checking Out the Internet on the Road

Privacy/Security
TelecomAM: Industry Says It Would 'Understand' Letting
FCC Arbitrate CALEA

** FCC **

Title: All Too Soon, New F.C.C. Chief Finds Warm Welcome Is Cooling
Source: New York Times (D1,D4)
http://www.nytimes.com/yr/mo/day/news/financial/fcc-problems.html
Author: Seth Schiesel
Issue: FCC
Description: When William Kennard, chairman of the Federal Communications
Commission, was appointed to his position last fall, there was great optimism
that he would enable the Telecommunications Act of 1996 to be carried out in
an efficient and effective manner. But starting this week, a Senate
sub-committee is opening hearings on the FCC's handling of some of the Act's
key provisions. Chairmen Kennard admitted in an interview on Friday, "There
is an
increasing anxiety about the telecom act and what results it's producing."
But he also stated, "I think the anxiety in the marketplace means things are
happening." Scot Cleland, a communications-policy analyst in Washington for
Legg Mason Precursor Group, said, "The telecom act sets up the FCC as the
fall guy." Cleland added, "Now they are besieged...They are in a no-win
situation."

** Free Time/Campaign Finance Reform **

Title: Republicans punt on free-airtime block
Source: Broadcasting&Cable (p.21)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Free Time for Candidates
Description: The Clinton Administration won the latest round in the battle
over free air time for candidates. Senate Appropriations Committee Chairman
Ted Stevens (R-AK) did not include a measure that would have prevented the
FCC from spending money to create or enforce a rule requiring free airtime
for politicians. Sen. John McCain (R-AZ) and Sen. Conrad Burns (R-MT)
"remain vehemently opposed to an unelected agency mandating free TV time"
and plan on adding the restriction on the FCC to other legislation. Sen
Joseph Lieberman (D-CT) said, "The Senate has failed to adopt campaign
finance reform. Will we now try to stop other agencies of the government
from doing so?"

Title: Senators give Kennard grief over plans for free airtime
Source: Broadcasting&Cable (p.20)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Free Time for Candidates
Description: "You have a big enough headache with the transition to digital
television, and a big enough headache implementing the Telecommunications
Act, without wandering afar into freetime...You need to restrict yourself to
doing the job we give you," said Sen Ernest Hollings (D-SC) to FCC Chairman
William Kennard during a Senate committee hearing last week. Senate
Appropriations Committee Chairman Ted Stevens (R-AK) added, "I think that if
the FCC can't learn the power of the law and the construction of the law,
then we ought to get a new mechanism." A spokeswoman for Chairman Kennard
said, "We still plan to go ahead [with the inquiry] sometime this spring."
The FCC make take up the issue at its April 2 meeting.

Title: In Calif. Primary, It's TV Time
Source: Washington Post (A11)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/23/056l-032398-idx.html
Author: Ceci Connolly
Issue: Campaigns
Description: In California, two Democratic candidates, Rep. Jane Harman and
businessman Al Checchi, have promised to spend whatever it takes for a
"blockbuster" gubernatorial campaign. After about seven weeks in the race,
Rep. Harman is in the lead after buying $3 million of television commercials.
Mr. Checchi is 2 points behind after purchasing $14 million of commercials with
his own money. Lt. Gov. Gray Davis, will save most of his estimated $5
million budget for the few weeks before the June 2 primary. "I think it's
great [that] people can become wealthy in this country," Lt. Gov. Davis told
Democrats at a state convention. "But I know two things: First, your vote is
not for sale. And second, I offer the voters a wealth of public service
experience that no amount of money can buy."

Title: Campaign Finance Charades
Source: New York Times (A20)
http://www.nytimes.com/yr/mo/day/editorial/23mon1.html
Author: NYTimes Editorial Staff
Issue: Campaign Finance Reform
Description: Speaker of the House Newt Gingrich has scheduled a vote on
"sham legislation set up to look like reform," with no opportunity for
members to vote on the real reform. It appears clear that the Republican
leadership is dedicated to "thwarting" the majority that sees the "hypocrisy
of doing nothing after a year of denouncing the campaign excesses of 1996."
In an effort to repel Democrats, the Speaker has attached a "watered-down"
soft-money ban to an anti-labor provision. Newt Gingrich knows if he allowed
a clean vote on reform -- pushed into the House by Representatives
Christopher Shays (CT) and Marty Meehan (MA) -- it would win. So instead he
is making it impossible to "strip away' the anti-labor measure. "The union
provision, which would require members to approve the spending of their dues
for political purposes, commands support among Republicans eager to punish
labor for targeting their party in the last campaign. There is no comparable
proposal to allow shareholders to give approval of corporate spending on
politicians, most of whom happen to be Republicans." In a vote this week,
supporters of reform hope to have the Shays-Meehan bill separated from the
anti-labor provision. If the Democrats stand firm and around 15 Republicans
join them in voting against Mr. Gingrich's "anti-reform scheme," they should
be able to defeat the Speaker's "trick." "At least 40 Republicans have
endorsed reform in the past, and they should do so now."

** Television **

Title: FCC to spot-check kids TV commercials
Source: Broadcasting&Cable (p.22)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Children's Television
Description: In the wake of a report released earlier this month that found
that 28% of 265 television stations fail to comply with Federal
Communications Commission rules concerning the amount of advertising during
children's programming, the FCC plans random audits of stations around the
country. The rules limit commercial time to 10.5 minutes per hour on
weekdays and 12 minutes per hour on the weekends during children's shows.
Rep. Edward Markey (D-MA), the author of the Children's Television Act of
1990, said last week, "The FCC's prompt response to my inquiry and Chairman
Kennard's interest in pursuing this problem vigorously with the broadcast
community are most welcome. Children are a uniquely vulnerable target
audience for advertisers."

Title: "Seinfeld" raises bar for syndicators
Source: Broadcasting&Cable (p.8)
http://www.broadcastingcable.com/
Author: Joe Schlosser
Issue: Television Economics
Description: Last week, Columbia TriStar Television Distribution sold
off-network rights to the second cycle of "Seinfeld" for a record $300,000
per week. "Let the floodgates open," said one media executive. "Now that the
Seinfeld deal has happened, there is a pent-up [group] of shows that now
rush out into the marketplace searching for those top dollars too." [See
also B&C p.10 "WNYW pays $300,000 for 'nothing'" by Joe Schlosser]

** Ownership **

Title: Kennard looks to restart minority push
Source: Broadcasting&Cable (p.22)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Minorities/Ownership
Description: Speaking at a Rainbow/PUSH Coalition meeting last week, FCC
Chairman Bill Kennard promised "to complete a proceeding to explore new
incentives to promote minority media ownership." Chairman Kennard is
interested in restoring the tax certificate program and tailoring it so that
it benefits only bona fide minority ventures. He is also interested in
establishing a low-power radio service "so that small businesses and
churches and community groups can use the airwaves to broadcast to their
communities." Broadcast industry leaders have already announced that they
oppose such a system.

** Radio **

Title: Ready to Launch a Global Radio Network
Source: Washington Post (Bus.Section-pgs5,6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/23/014l-032398-idx.html
Author: Mike Mills
Issue: International/Radio
Description: In September of this year, Noah Samara, founder of WorldSpace
Inc., plans to launch AfriStar, the first of three WorldSpace satellites to
go into orbit 22,300 miles above central Africa. The next two, AsiaStar and
AmeriStar, will go into orbit over Asia and the Americas next year. These
satellites will provide people living mostly in underdeveloped areas that
cannot currently pick up a radio station, access to 75 channels of
digital-quality music, news and other information from around the globe
through a $200 radio. Samara estimates that 300 million of these people can
and will pay the price of the radio, and he predicts the price will fall as
the service takes off. "My concern is not whether I can make this a
business," said Samara. "It's how to make it a phenomenon." Thomas Watts, a
satellite industry analyst for Merrill Lynch in New York, said "WorldSpace
serves a very large potential market for consumer products that cannot be
reached by any other advertising medium." And Leslie Taylor, a Washington
DC-based satellite industry consultant, said "I think that once he gets any
kind of significant penetration, even as low as 20,000 or 30,000 users, he's
going to start attracting a lot more interest among program suppliers."
Samara, who grew up in Ethiopia and Tanzania, has long been interested in
what it would take to help Africa raise out of what he called its state of
"dormancy." His conclusion, he said, was that "access to information is the
necessary condition for development." Samara's concerns go "beyond the
bottom line, he hopes that WorldSpace will help to plant the seeds of a
pan-African consciousness."

** Long Distance **

Title: Kennard To Send Hill A Roadmap On 14-point Checklist
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance/Competition
Description: After two weeks of frantic work, the FCC is ready to send
Congress 30 to 40 pages of documents that detail what Bell companies must do
to satisfy the Commission's 14-point competitive checklist for long distance
approval. Commerce Committee Chairman John McCain (R-AZ) and Sen. Brownback
(R-KS) asked FCC Chairman Kennard earlier this month to provide Congress
with a more detailed explanation of what Bell companies must do to win FCC
approval to enter the market.

Title: Local, Long Distance Carriers Split On MCI Access Charge Petition
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: The giants of the local and long distance markets are at it
again, this time over an MCI petition to change the way the FCC reduces
access charges. GTE and the Bell companies attacked the filing as "moot,
premature, repetitive [and] frivolous." Meanwhile, long distance companies
said the FCC should prescribe access charge reductions because the local
competition that was supposed to drive those rates down "has not developed."
MCI's "emergency" petition filed last month asked the FCC to mandate the
amount of money that long distance carriers must pay local companies for
access to their networks, rather than allow markets to reduce them.

Title: SBC's Plan to Expand Long-Distance Service Stumbles in Oklahoma
Source: Wall Street Journal (B5)
http://wsj.com/
Issue: Long Distance
Description: A federal appeals court upheld the government's rejection of a
plan by SBC to offer long-distance telephone service in Oklahoma. The ruling
by the U.S. Court of Appeals for the D.C. Circuit deals a setback to several
regional Bell companies trying to expand into long distance markets. The FCC
last year rejected SBC's Oklahoma application, finding that the company
hadn't met its obligation under the 1996 Telecom Act to open its local
network to competitors. Since the rejections, SBC has continued applying for
permission to offer long distance in Texas, Arkansas, and Kansas while
renewing its Oklahoma application.

** Internet **

Title: Ebbers Says Worldcom Doesn't Expect to Give Up Internet Backbone
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Infrastructure/Mergers
Description: Worldcom doesn't expect to give up its Internet backbone
network or any other Internet services as a condition for winning Justice
Dept. approval for its merger with MCI, CEO Bernard Ebbers told Wall Street
analysts. He said he expects to hear from the DOJ "in a couple of weeks to
help the company understand "what the barometer is saying." Ebbers said
government concerns about local and long distance market issues appear to
have been eased by DOJ lawyers' meetings with Worldcom.

Title: Rep. Cox and Local Officials Agree On Revised Internet Tax Freedom Act
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Electronic Commerce/Internet Regulation
Description: Rep. Christopher Cox (R-CA) and state and local officials
including the National Governors Assoc. (NGA) have agreed on a revised
version of the Internet Tax Freedom Act. Rep Cox said the changes, which include
reducing a moratorium on new taxes on Internet access and "discriminatory"
taxation of online transactions to three years from six and grandfathering
some existing Internet taxes, will allow the bill to pass the House "with
overwhelming support" before Easter. Other changes include the creation of a
"Commission on Internet Commerce," composed of 29 representatives of state,
local and federal governments and business and consumer interests.

Title: A Benign Declaration Treated as Revolutionary
Source: New York Times
http://www.nytimes.com/library/tech/98/03/biztech/technology/23techcol.html
Author: Edward Rothstein
Issue: Internet
Description: A group of high-profile, youngish Internet advocates decided
that views of technology and the Internet had been skewed toward extremes.
On the one hand, the Internet is treated as the electronic frontier, the
hope of humankind, the harbinger of a coming utopia. On the other hand, this
high-technology nexus has seemed to be a home for pornography and perversion
populated by sexual predators, a fitting example of the evils of unfettered
technology. In response to these views, the dissidents wrote a manifesto
calling for "technorealism" and calling themselves technorealists. This
manifesto, at http://www.technorealism.org, rejects the "louder voices at the
extremes" in favor of a more balanced consensus, a "fertile middle ground
between technoutopianism and neo-Luddism."

Title: Concerns Raised by Unregulated Drug Sales on Web
Source: New York Times
http://www.nytimes.com/library/tech/98/03/biztech/articles/23pharmacy.html
Author: Stacy Lu
Issue: Internet Commerce/Health
Description: The unregulated atmosphere of the World Wide Web may be a boon
to the First Amendment, but the international medical community might argue
that freedom has its limits. The online promotion and sale of medicines and
dietary supplements have health and consumer groups scrambling for
regulation. International drug sales have never been simple, and the Web
further complicates the situation. A prescription drug in one country may be
a nutritional supplement in another, for example. Disclaimers and disclosure
info vary from country to country, as does sales licensing. Meanwhile, the
Web has increased the potential for medical fraud. Although difficult to
quantify -- no agency or organization tracks online drug sales -- much of
the trade is in experimental and unproven substances.

Title: Business Ethics on the Web
Source: New York Times
http://www.nytimes.com/library/tech/yr/mo/biztech/sites/23sites.html
Author: Sreenath Sreenivasan
Issue: Internet/Ethics
Description: The World Wide Web isn't exactly a haven for good business
ethics. Naturally, those who study business ethics worry about the Web.
"Every possible abuse of integrity and decency takes place on the Web," said
Laura Pincus Hartman, director of the Institute for Business and
Professional Ethics at DePaul Univ. in Chicago. Randy Pennington, an ethics
consultant based in Dallas, said there was "a sense that moral and ethical
values are not important" on the Web. But that does not surprise him. "There
is no standardization in technology on the Web, so why do we expect
standardization in behavior?" he said. The Netcheck Commerce Bureau is one
attempt at self-regulation. The agency maintains a list of companies
involved in electronic commerce. Visitors to Netcheck's site can register
consumer complaints about anything from unsolicited e-mail to copyright
disputes. The site's philosophy is that "public pressure is the only real
deterrent in this new frontier."

Title: Checking Out the Internet on the Road
Source: Washington Post (Bus.Section-pgs16,18)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/23/024l-032398-idx.html
Author: William Casey
Issue: Libraries/Access
Description: Many of the nation's 10,000 libraries have added the Internet
to their information offerings. After the author conducted an unscientific
sample by visiting more
than three dozen libraries in 14 states, he found that no two libraries
provide the same access or have the same policies when it comes to patrons
seeking "cyberspace access." He found that 80 percent of the libraries he
visited offered some kind of Internet access. But many have just recently
hooked up to the Internet and about a third only offered access on a single
computer terminal. Casey found that many libraries have a time limit of 30
minutes and require the user to first sign some type of document. Most of
these forms seek to "limit liability on the part of the library for your
use, restrict your online exploration to non- 'obscene' sites, or both."
Overall he found librarians to provided him with the "kind of treatment that
follows in the best tradition of a public library" and this area to be a
growth sector that is improving its resources weekly.

** Privacy/Security **

Title: Industry Says It Would 'Understand' Letting FCC Arbitrate CALEA
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Privacy/Security
Description: Because of "unreasonable" demands by the FBI, the telecom
industry "would understand" if Attorney General Janet Reno decides to let
the FCC arbitrate the dispute over what constitutes compliance with the
Communications Assistance for Law Enforcement Act (CALEA). The heads of the
Cellular Telecommunications Industry Assoc., Personal Communications
Industry Assoc., Telecommunications Industry Assoc. and U.S. Telephone
Assoc. said they still are willing to participate in a 60-day pricing
exercise and "gladly accept" Reno's offer to further clarify the FBI's
position.
*********

Universal Service Update from NECA

PROVIDED COURTESY OF THE NATIONAL EXCHANGE CARRIER ASSOCIATION, INC.
www.neca.org

Universal Service Update

United States Telephone Association (USTA) President and CEO Roy Neel stated
that USTA will "fight to the end" to ensure that recently added language to
an appropriations bill passed earlier this week does not require the Federal
Communications Commission to fund the new universal service schools,
libraries and rural health care programs with money freed up from reductions
in interstate access charges exclusively. Mr. Neel's remarks were given
during a press conference yesterday in Washington. The language, introduced
by Senator Ted Stevens, would require the FCC to make an estimate of
expected reductions in access charges, predict rates-of-return for various
incumbent local exchange carriers (ILECs), and to provide a "complete
explanation and accounting for any headroom claimed to be available to an
ILEC whose actual rate of return is greater than 11.25%."

Neel said he "does not think that is a reasonable way to fund the subsidy
program for schools and libraries." Senate staffers told Neel that it is
"just a study," but Neel said USTA was "working hard to reeducate Congress"
against funding the programs through reductions in access charges.

Also, NECA was kind enough to inform Headlines staff about an incorrect
posting on March 18.

Title: Senate Appropriations Approves Bill Changing Universal Service
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The Senate Appropriations Committee approved a bill yesterday
that "would require the FCC to propose by May 8 a revised administration for
its new universal
service programs and explain and justify their funding mechanisms. Citing the
General Accounting Office's finding that the FCC overstepped its legal
authority in creating the current structure, the bill would require the
Commission to
replace the three universal service organizations -- the Universal
Service Administrative Company (USAC) and its subsidiaries, the Rural Health
Care
Corporation and the SLC -- with a single entity." The bill also would require a
report detailing how the programs will be paid for.

NECA informs us that the legislation would fold the Rural Health Care
Corporation and the Schools and Libraries Corporation into one entity, but
USAC would remain separate.

The legislation in question is S.1768 -- the 1998 Emergency Supplemental
Appropriations Act for Recovery From Natural Disasters, and for Overseas
Peacekeeping Efforts. Section 2004 of the bill appears below:

SEC. 2004.
PROVISIONS RELATING TO UNIVERSAL SERVICE SUPPORT FOR PUBLIC
INSTITUTIONAL TELECOMMUNICATIONS USERS. (a) NO INFERENCE REGARDING EXISTING
UNIVERSAL SERVICE ADMINISTRATIVE MECHANISM- Nothing in this section may be
considered as
expressing the approval of the Congress of the action of the Federal
Communications Commission in establishing, or causing to be
established, one or more corporations to administer the schools and
libraries program and the rural health care provider program under section
254(h) of the Communications Act of 1934 (47 U.S.C.254(h)), or the approval
of any provision of such programs.

(b) FCC to Report to the Congress-

(1) REPORT DUE DATE- Pursuant to the findings of the General Accounting
Office (B-278820) dated February 10, 1998, the Federal Communications
Commission shall, by May 8, 1998, submit a 2-part report to the Congress
under this section.

(2) REVISED STRUCTURE- The report shall propose a revised structure for
the administration of the programs established under section 254(h) of the
Communications Act of 1934 (47 U.S.C. 254(h)). The revised structure shall
consist of a single entity.

(A) LIMITATION ON ADMINISTRATION OF PROGRAMS- The entity proposed by the
Commission to administer the programs--

(i) is limited exclusively to the ministerial acts of processing the
applications necessary to determine eligibility for discounts under section
254(h) of the Communications Act of 1934 (47 U.S.C.254(h)) as determined by
the Commission;

(ii) may not administer the programs in any manner that requires that
entity to interpret the intent of the Congress in establishing the programs
or interpret any rule promulgated by the Commission in carrying out the
programs.

(B) APA REQUIREMENTS WAIVED- In preparing the report required by this
section, the Commission shall find that good cause exists to waive the
requirements of section 553 of title 5, United States Code, to the extent
necessary to enable the Commission to submit the report to the Congress by
May 8, 1998.

(3) REPORT ON FUNDING OF SCHOOLS AND LIBRARIES PROGRAM AND RURAL HEALTH
CARE PROGRAM- The report required by this section shall also provide the
following information about the contributions to, and requests for funding
from, the schools and libraries subsidy program:

(A) An estimate of the expected reductions in interstate access
charges anticipated on July 1, 1998, including individual estimates of--

(i) the value of the current price cap formula, excluding the `g'
(growth) component;

(ii) the value of the `g' (growth) component;

(iii) the value of the exogenous cost component;

(iv) the amount of available headroom; and

(v) the amount of reductions for incumbent local exchange carriers
still subject to rate-of-return regulation.

(B) The 1997 interstate rate of return for each incumbent local
exchange carrier subject to price cap regulation;

(C) Based on the information in subparagraphs (A) and (B), a complete
explanation and accounting for any headroom claimed to be available to an
incumbent local exchange carrier whose actual rate of return is greater than
11.25 percent.

(D) An accounting of the total contributions to the universal service
fund that are available for use to support the schools and libraries program
under section 254(h) of the Communications Act of 1934 (47 U.S.C. 254(h))
for the second quarter of 1998.

(E) An accounting of the amount of the contribution described in
subparagraph (D) that the Commission expects to receive from--

(i) incumbent local exchange carriers;

(ii) interexchange carriers;

(iii) information service providers;

(iv) commercial mobile radio service providers; and

(v) any other provider.

(F) With regard to incumbent local exchange carriers--

(i) the amount of the contribution for universal services under
section 254 of the Communications Act of 1934 (47 U.S.C. 254) that will be
recovered from subscribers; and

(ii) the amount that will be passed on to interexchange carriers
in the form of increased access charges, the access and end-user rate
elements in which any increase in incumbent local exchange carrier
contributions will be reflected, and an explanation of why this method of
cost recovery is consistent with the goal of competitive neutrality set
forth in section 254(d) of that Act (47 U.S.C. 254(d)).

(G) Based on the applications for funding under section 254(h) of
the Communications Act of 1934 (47 U.S.C. 254(h)) received as of April 15,
1998, an estimate of the costs of providing universal service support to
schools and libraries under that section disaggregated by eligible services
and facilities as set forth in the eligibility list of the Schools and
Libraries Corporation, including--

(i) the amounts requested for costs associated with
telecommunications services;

(ii) the amounts requested for costs described in clause (i)
plus the costs of internal connections under the program; and

(iii) the amounts requested for the costs described in clause
(ii), plus the cost of internet access.

(H) A justification for the amount, if any, by which the total
requested disbursements from the fund described in subparagraph (G) exceeds
the amount of available contributions described in subparagraph (D).

(I) Based on the amount described in subparagraph (G), an
estimate of the amount of contributions that will be required for the
schools and libraries program in the third and fourth quarters of 1998, and,
to the extent these estimated contributions for the third and fourth quarter
exceed the current second-quarter contribution, the Commission shall provide
an estimate of the amount of support that will be needed for each of the
eligible services and facilities as set forth in the eligibility list of the
Schools and Libraries Corporation, and disaggregated as specified in
subparagraph (G).

(J) An explanation of why restricting the basis of
telecommunications carriers' contributions to universal service under
254(a)(3) of the Communications Act of 1934 (47 U.S.C. 254(a)(3)) to
interstate revenues, while requiring that contributions to universal service
under section 254(h) of that Act (47 U.S.C. 254(h)) be based on both
interstate as well as intrastate revenues, is consistent with the provisions
of section 254(d) of that Act (47 U.S.C. 254(d)).

(K) An explanation as to whether access charge reductions should
be passed through on a dollar-for-dollar basis to each customer class on a
proportionate basis.

(c) SCHOOLS AND LIBRARIES PROGRAM ASSISTANCE CRITERIA- In carrying out
the schools and libraries program under paragraphs (1)(B) and (2) of section
254(h) of the Communications Act of 1934 (47 U.S.C. 254(h)), the Commission
shall prioritize assistance on the basis of need. In determining need under
this section, the Commission shall make funds available for distance
delivery education programs where advanced learning technologies are not
otherwise available at affordable rates.

(d) IMPOSITION OF CAP ON COMPENSATION OF INDIVIDUALS EMPLOYED TO CARRY
OUT THE PROGRAMS- No officer or employee of the entity to be proposed to be
established under subsection (b)(2) of this section may be compensated at an
annual rate of pay, including any non-regular, extraordinary, or unexpected
payment based on specific determinations of exceptionally meritorious
service or otherwise, bonuses, or any other compensation (either monetary or
in-kind), which exceeds the rate of basic pay in effect from time to time
for level I of the Executive Schedule under section 5312 of title 5, United
States Code.

(e) SECOND-HALF 1998 CONTRIBUTIONS- Before June 1, 1998, the Federal
Communications Commission may not--

(1) adjust the contribution factors for telecommunications carriers
under section 254; or

(2) collect any such contribution due for the third or fourth
quarter of calendar year 1998.

------------------------------
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Communications-related Headlines for 3/20/98

FCC
TelecomAM: FCC's Actions Hurt Funding Chances, Senate Panel Tells Kennard
TelecomAM: Bell Atlantic and SBC Praise FCC On Long Distance Process

Television Economics
NYT: A Family Circle Breaks: Murdoch Owns Dodgers
NYT: Steinbrenner Discussed Selling Piece of Yankees
NYT: Yanks Would Bolster Cablevision's Empire
NYT: BBC and Discovery to Develop Programming Together

Lobbying
NYT: Labor Asks Members to Fund $13 Million Political Effort
NYT: Database of Lobbyists Sheds Light on Big Spenders

Philanthropy
NYT: Alumni Pledge $10 Million to a Public High School

Internet
NYT: Drudge Case Takes on Issue of Liability
WSJ: Postal Service's 'Snail Mail' Meets E-Mail as Internet Shops Are
Targeted
WP: Governors Back 3-Year Ban on Internet Taxes

Encryption/Privacy
WSJ: Network Associates Will use Dutch Unit To Circumvent Encryption
Export Rules
NYT: Export Laws Challenged by Sale of Encryption Software Abroad
TelecomAM: USTA's Neel Says CALEA Negotiations Have Stalled

Mergers
WSJ: Motorola to Boost Stake in NetSpeak, Purchase Its Software
WSJ: Merger Talks Between At-Home Corp., Time Warner Unit Are Off
for Now

** FCC **

Title: FCC's Actions Hurt Funding Chances, Senate Panel Tells Kennard
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: FCC/Regulation
Description: Federal Communications Chairman William Kennard got a
tongue-lashing from the Senate Appropriations Committee's Commerce
Subcommittee. "We set policy, you administer," said Sen. Ernest Hollings
(D-SC). He said the FCC seems "take its edict" directly from the Clinton
Administration and is setting its own agenda on such issues as wiring
schools and libraries and free time for political candidates. Senate
Appropriations Chairman Ted Stevens (R-AK) said the FCC seems intent on
seeing "how far it can stretch" Congress' intent and is "making a case" for
Members of Congress who want to destroy the agency. Subcommittee Chairman
Judd Gregg (R-NH) said universal service should be "just that -- serving
rural areas." Chairman Kennard defended the FCC's actions on universal
service -- ensuring the senators that the funds for schools and libraries
and those for the high-cost fund come from different places and "don't
affect" each other. He also said Schools & Libraries Corp head Ira Fishman
is doing the best job possible so far.

Title: Bell Atlantic and SBC Praise FCC On Long Distance Process
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Bell Atlantic and SBC expect to offer long distance service in
one or more of their states by year-end, citing the new cooperative attitude
of the FCC and rapidly increasing local competition, executives of both
companies told analysts. SBC CEO Edward Whitcare said he expected to be in
"some or all" seven states this year, after planning to file at all state
agencies by June or July. Whitcare credited a string of U.S. District Court
decisions against the FCC for the new attitude, but he also gave credit to
the new commissioners, especially Chairman Kennard for what he said was a
more open attitude toward the applications: "Our rapport with the FCC is
better than it has been in a long, long time."

** Basaball Been Berry Berry Good to Me **
(Lighten up. Its spring and the Cubs are still in first place.)

Title: A Family Circle Breaks: Murdoch Owns Dodgers
Source: New York Times (C21)
http://www.nytimes.com/library/sports/baseball/032098bbo-dodgers-sale.html
Author: Murray Chass
Issue: Television Economics
Description: Baseball owners approved the sale of the Los Angeles Dodgers to
Rupert Murdoch's Fox Group for $311 million. Fox Group's parent company,
News Corp, now has an interest in the Dodgers, the national rights to major
league games, and local media right of 22 major league clubs. One owner
said, "[News Corp] made very strong statements that they would operate each
of these businesses separately." The O'Malley's were the last of the family
owners in baseball and Walter O'Malley broke my father's heart when he moved
the club from Brooklyn before the 1958 season.

Title: Steinbrenner Discussed Selling Piece of Yankees
Source: New York Times (A1)
http://www.nytimes.com/library/sports/baseball/032098bba-yanks-sale.html
Author: Murray Chass
Issue: Television Economics
Description: On the day that baseball owners approved the sale of the Los
Angeles Dodgers to Rupert Murdoch's Fox Group, New York Yankees' owner
(King) George Steinbrenner announced that he has had talks about selling a
portion of the legendary franchise to Cablevision Systems Corporation.The
television and sports company already owns the New York Knicks and Rangers.
Media companies are purchasing teams in a variety of sports because the
teams prove to be "vital anchors to their programming business." [See also
NYT (C22) "Yanks Would Bolster Cablevision's Empire"
http://www.nytimes.com/library/sports/baseball/032098bba-yanks-suiter.html
][Cone to start home opener.]

Title: BBC and Discovery to Develop Programming Together
Source: New York Times (C2)
http://www.nytimes.com/yr/mo/day/news/financial/tv-bbc-discovery.html
Author: Lawrie Mifflin
Issue: Mergers
Description: The British Broadcasting Company and Discovery Communications
have announced a $565 million alliance to create new programs and cable
channels around the globe. Discovery will invest 1) $290 million in new
channel development, 2) $175 million in documentary programs produced or
co-produced by BBC, and 3) $100 million to start BBC America to be available
to American cable operators on March 29. BBC America will be a network of
drama, comedy and news programs including four daily live half-hour news
broadcasts from BBC World news service. BBC World will try to make deals
with other commercial outlets and PBS in hopes of being available in the
colonies 24 hours a day. [Call your cable operator and say, I want my BBC.]

** Lobbying **

Title: Labor Asks Members to Fund $13 Million Political Effort
Source: New York Times (A12)
http://www.nytimes.com/yr/mo/day/news/national/afl-cio-meeting.html
Author: Steven Greenhouse
Issue: Lobbying
Description: The leaders of the AFL-CIO have voted to create a $13 million
"mobilization" fund to help pro-labor candidates get elected, pro-labor
legislation to be passed, and to defeat a California referendum that would
restrict the use of union dues for political activity without prior,
specific approval of members. The $13 million fund -- $1 for each AFL-CIO
member -- would be an addition to the $15 million the organization has
already approved for political activity this year. [Hey, maybe we can have
parallel legislation that gets prior approval from each stock holder, too.]

Title: Database of Lobbyists Sheds Light on Big Spenders
Source: New York Times (CyberTmes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/20lobby.html
Author: Rebecca Fairley Raney
Issue: Lobbying
Description: The Center for Responsive Politics (CPR) is making available
over the Internet a database of the lobbying efforts in Washington. of
individuals and organizations. CPR already has a searchable database on
campaign contributions. "We're broadening our scope to say money in politics
doesn't involve just campaign contributions," said the center's webmaster. A
new CRP report shows that lobbying is a $1.2 billion industry. See
http://www.crp.org for more information.

** Philanthropy **

Title: Alumni Pledge $10 Million to a Public High School
Source: New York Times (A23)
http://www.nytimes.com/yr/mo/day/news/national/highschool-gift.html
Author: Jacques Steinberg
Issue: Philanthropy
Description: Alumni of the Brooklyn Technical High School have pledged to
raise $10 million to establish a university-style endowment for one of New
York's most selective and prestigious public schools. The endowment could
generate as much as $800,000 per year for the school. The alum heading the
effort is Leonard Riggio, chairman of Barnes & Noble. Ironically, Schools
Chancellor Rudy Crew, who welcomed the unsolicited gift yesterday, spurned a
group of elementary school parents who raised $46,000 last year to pay the
salary of a teacher in hopes of reducing class size.

** Internet **

Title: Drudge Case Takes on Issue of Liability
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/cyberlaw/20law.html
Author: Carl Kaplan
Issue: Internet Content
Description: The $30 million libel suit filed by Sidney and Jacqueline
Blumenthal against Matt Drudge will address the possibility of liability of
the case's co-defendant, America Online. The online service posted the
disputed column. The Blumenthal's lawyers want AOL held to the same standard
that the Washington Post would have been if it had published the story. A
decision on AOL's liability is expected in four to six weeks.

Title: Postal Service's 'Snail Mail' Meets E-Mail as Internet Shops Are
Targeted
Source: Wall Street Journal (B7A)
http://wsj.com/
Author: Anthony Palazzo
Issue: Internet Commerce
Description: Camped out at last week's Internet World trade show was the
U.S. Postal Service, hawking -- of all things -- "snail mail." That quaint,
yet patronizing, term implies that old-fashioned mail is a relic in this era
of instant messaging and online chat. So what was the Postal Service doing
at the trade show? Trying to capitalize on a budding opportunity,
post office reps said. "These people are trying to do commerce on the
Internet. They want to be successful, and they are," said Danny Lopez,
tactical marketing specialist for the Postal Service. At Internet World, the
spotlight was on shipping services. The post office reckons it offers
cheaper rates than its largest competitors, UPS and Federal Express. The
postal service has also made itself a more attractive choice by improving
its on-time rates under Postmaster General Marvin Runyon, who's retiring
this spring. Services have been expanded to include business-customer
pickups and shipping boxes customized for Postal Service customers.

Title: Governors Back 3-Year Ban on Internet Taxes
Source: Washington Post (F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/20/123l-032098-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Regulation
Description: The nation's governors agreed to support a three-year ban on
special Internet commerce taxes in exchange for a promise by Congress to
consider requiring electronic merchants to collect sales taxes after the
moratorium. The Nat'l Governors Assoc. had opposed bipartisan legislation in
the House and Senate to enact an Internet tax moratorium, saying the freeze
could deprive state and local governments of crucial tax revenue as
electronic commerce becomes popular. The governors' disapproval threatened
to scuttle the bills. Industry groups contend that imposing sales taxes on
Internet transactions will slow the growth of electronic commerce and make
it less appealing to consumers.

** Encryption/Privacy **

Title: Network Associates Will use Dutch Unit To Circumvent Encryption
Export Rules
Source: Wall Street Journal (B7)
http://wsj.com/
Author: David Bank
Issue: Encryption
Description: Network Assoc. said it will skirt U.S. export restrictions on
strong encryption technology by selling data-security software to
international customers from a Dutch subsidiary, a move likely to draw close
gov't. scrutiny. Execs at Network Assoc. said they developed the plan to
meet demands from global customers to protect the confidentiality of e-mail
without providing law-enforcement agencies with the means to monitor the
communications (slick... but not slick enough!). The U.S. Commerce Dept.,
concerned about the potential abuse of encryption technology by terrorists
and drug traffickers, has made the inclusion of such provisions a condition
of granting exceptions to the export ban, except for certain customers, such
as banks.

Title: Export Laws Challenged by Sale of Encryption Software Abroad
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/20encrypt.html
Author: John Markoff
Issue: Encryption
Description: Network Associates has announced that it will allow its Dutch
subsidiary to begin selling an international version of Pretty Good Privacy
(PGP). The data-scrambling software does not provide a "back door" for law
enforcement surveillance. "This is the biggest challenge yet to the US
policy," said an industry analyst. "It has a tremendous consumer base." The
Clinton Administration is starting to get pressure from Republicans to end
the export ban on encryption software.

Title: USTA's Neel Says CALEA Negotiations Have Stalled
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Privacy
Description: Negotiations between the FBI and the phone industry on
implementation of the Communications Assistance for Law Enforcement Act
(CALEA) have installed and the situation undoubtedly will end up in the
FCC's lap, U.S. Telephone Assoc. President Roy Neel told reporters at a
media lunch. Neel said negotiations broke down because of the FBI's
insistence on adding a "punch list" of expanded capabilities not authorized
by CALEA and the phone industry's concern that the October deadline can't be
met, even if an agreement were reached now. He said money issues also play
an important part in the dispute, particularly how the additional
capabilities on the "punch list" would be funded. "There's no way the
industry can implement the changes sought by the Dept. of Justices within
the $500 million appropriated," Neel said.

** Mergers **

Title: Motorola to Boost Stake in NetSpeak, Purchase Its Software
Source: Wall Street Journal (B7)
http://wsj.com/
Issue: Merger/Investment
Description: Motorola said it intends to boost its stake in NetSpeak to
nearly 35% and said it will buy a minimum of $30 million in software over
several years from the firm, which specializes in technology for telephone
services over the Internet. The investment heats up the race among
telecommunications and data networking firms to provide traditional voice
communications and new multimedia services over the Internet. NetSpeak's
products include "gateway" software that transports calls using Internet
Protocol, or IP. Due to the unregulated nature of the 'Net, using the global
network for phone calls can significantly slash long-distance charges for
consumers, though the quality of conversation is often poor.

Title: Merger Talks Between At-Home Corp., Time Warner Unit Are Off for Now
Source: Wall Street Journal (B7)
http://wsj.com/
Author: Leslie Cauley
Issue: Mergers
Description: Merger talks are off for now between At-Home Corp. and Road
Runner, the two leading cable-TV-owned Internet services, people familiar
with the matter say. The various parties were unable to agree on valuation,
control and other issues. At-Home's owners also have been talking to AT&T
about the phone giant's investing in At-Home. AT&T's investment in the
high-speed Internet-access service were largely contingent on At-Home
successfully merging with Road Runner, which itself is in the process of
merging with U S West's MediaOne Express service.
*********
We are outta here. Happy Fri-Return of the Smart*ss-day. Have a great weekend!

Communications-related Headlines for 3/19/98

Universal Service
FCC: Fact Sheet on Universal Service

Long Distance
TelecomAM: PacBell To File Long Distance Bid With California on March 31

Competition
TelecomAM: Analysts At Senate Hearing Say CLEC Gains Due To FCC Favoritism
TelecomAM: New S.D. Law Gives Telcos Freedom To Match Competitors' Offers

Spectrum
WSJ: Wireless Phones Poised to Roam World-Wide
NTIA: Interoperability Test Project

Internet
NYT: For Fanatics, Sports Webcasts
WSJ: Apache's Free Software Gives Microsoft, Netscape Fits

InfoTech
NYT: Few Answers on Monster of All Cyberbugs
WP: GAO: Year 2000 Computer Problems Persist
NYT: Forget Big Brother
NYT: Microchips Are Latest Addition To Gear For London's Marathon

Arts
NYT: Aiming Camera at Web, and Himself

Microsoft
WP: Microsoft Boosted Lobbyist Spending
NYT: As Big as Microsoft: Ribbing Gates

** Universal Service **

Title: Fact Sheet on Universal Service
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Factsheets/univers.html
Issue: Universal Service
Description: Common Carrier Bureau issues a new fact sheet to answer
questions consumers frequently ask about the FCC's Universal Service Support
mechanisms including telephone customers with low incomes; telephone
customers who live in areas where the costs of providing telephone service
is high; schools and libraries; and rural health care providers.

** Long Distance **

Title: PacBell To File Long Distance Bid With California on March 31
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Pacific Bell is expected to file an application with California
regulators on March 31 to enter the state's long distance market. A
spokesman for parent company SBC didn't confirm the story, but said that
SBC is seeking to enter the long distance market in all seven states in its
territory "by the end of the year." After the application is filed, parties
will have 30 days to comment on it. Reply comments will be due 20 days later
and a 5-day hearing will be held two months after the filing.

** Competition **

Title: Analysts At Senate Hearing Say CLEC Gains Due To FCC Favoritism
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Competition
Description: Competitive local exchange carriers have raised enormous
amounts of capital and seen their stock soar because investors perceive them
as the beneficiaries of FCC favoritism and arbitrage opportunities.
Financial analysts told a Senate panel at a hearing of the Communications
Subcommittee that situations shouldn't be confused with real, sustainable
competition and that most consumers will never see improvement until rate
structures and universal service are reformed.

Title: New S.D. Law Gives Telcos Freedom To Match Competitors' Offers
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Competition
Description: South Dakota Gov. Bill Janklow has signed a bill allowing large
telephone companies to match the promotional price and service offers of
their local and interexchange competitors without seeking regulatory
approval. Under HB-1160, a telephone carrier is free to introduce
promotional rates and service terms "necessary to meet competition" and keep
them in place for as long as the competition does. This law, which takes
effect July 1, also prohibits an increases in basic local exchange rates for
large telcos. Local rates can be cut, but once cut cannot return to their
former level. This provision doesn't apply to temporary promotional rates.

** Spectrum **

Title: Wireless Phones Poised to Roam World-Wide
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Elizabeth Jensen
Issue: Wireless
Description: In the next few months, several companies, taking advantage of
shrinking electronics, plan to introduce phones that will work in the U.S.
as well as in much of Europe, Asia, the Middle East and Australia. That
means U.S. travelers to Europe or Asia won't have to rent a handset when
stepping off the plane. All those numbers stored electronically will travel
with them as well. The new phones work on the digital GSM (Global System for
Mobile Communications) technology. The multiband phones are necessary
because not all GSM systems operate on the same radio frequency. European
and Asian GSM is available on the 900 megahertz and, in some places, the
1,800 megahertz frequencies, while in the U.S., GSM is found on the 1,900
megahertz frequency.

Title: Interoperability Test Project
Source: NTIA
http://www.ntia.doc.gov/ntiahome/press/wisconsi.htm
Issue: Spectrum
Description: National Telecommunications and Information Administration
(NTIA), working with the Department of Defense (DoD), signed an agreement to
authorize the state of Wisconsin to use federal radio frequencies to test a
shared land mobile trunking communications system that will greatly
facilitate communication during emergencies as well as during day-to-day
communications. For more information contact Paige Darden 202-482-7002 or
pdarden( at )ntia.doc.gov.

** Internet **

Title: For Fanatics, Sports Webcasts
Source: New York Times (E9)
http://www.nytimes.com/
Author: Matt Richtel
Issue: Internet Content/Lifestyles
Description: For sports fans separated from their favorite team by distance,
the Internet is offering a new version of live coverage. ESPN Sportszone,
CBS Sportsline and other websites offer a new way to watch a game unfold.
Although the medium does not offer the excitement of being there or even
watching a game on TV, fans are delighted nonetheless. "We've built the
Edsel," says CBS Sportsline Executive Producer Ross Levinsohn. "This is the
forebear to the Rolls-Royce, which is still three to six years away." Check
out these sites: ESPN Sportszone http://espn.sportzone.com/; CBS
Sportsline http://www.cbssportsline.com/; Total Sports
http://www.totalsports.com/; or NCAA Final Four
http://www.finalfour.net/. [Maybe I don't have to move back to Chicago to
follow the Cubs after all.]

Title: Apache's Free Software Gives Microsoft, Netscape Fits
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Jared Sandberg
Issue: Online Services
Description: The epic struggle between Netscape and Microsoft over software
for the World Wide Web is a well-chronicled David vs. Goliath tale. But both
companies are losing business to a rival product few people have ever heard
of: Apache. Among the vast features of this little-known program is one that
is particularly hard to resist: It is entirely free. Apache, it turns out,
doesn't come from a company at all. It's the loving labor of a loose
confederation of programmers who wanted to build a better way to serve up
Web pages to the millions of people who want to see them. "Direct
remuneration itself wasn't an interest," says Brian Behelendorf, one of the
chief organizers of the Apache Project. "We needed a better server for our
own purposes, and we wanted to take our future into our own hands."

** InfoTech **

Title: Few Answers on Monster of All Cyberbugs
Source: New York Times (A19)
http://www.nytimes.com/library/politics/031998millennium.html
Author: Matthew L. Wald
Issue: Computers/Year 2000 Bug
Description: On Wednesday, high-ranking government auditors warned a joint
House hearing of two technology subcommittees, that some government
functions are likely to be disrupted at the end of century due to the Year
2000 bugs in their critical computer systems. A count by the Office of
Management and Budget in mid-February found that only 35 percent of
computers that are critical for agencies to function have been checked and
adjusted. According to witnesses, it took two years to complete this task
and there are 3,500 computers to fix in the next 21 months.

Title: GAO: Year 2000 Computer Problems Persist
Source: Washington Post (A19)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/19/143l-031998-idx.html
Author: Rajiv Chandrasekaran and Stephen Barr
Issue: Computers/Year 2000 Bug
Description: Gene L. Dodaro, the General Accounting Office's assistant
comptroller general, issued a warning yesterday that several federal
agencies are still not moving fast enough to fix their computers systems so
they will work when the year 2000 roles around. He predicted that despite a
likely last minute push, some agencies will not be able to complete the
adjustments in time, increasing the possibility of problems ranging from the
grounding of airplanes to the issuing of Medicare checks every month. "At
the current pace, it is clear that not all mission critical systems will be
fixed in time," Dodaro told the two House technology subcommittees. His message
was bleak and raised the possibility of government computer failures
spilling over into the private sector. "America's infrastructures are a
complex array of public and private enterprises with many interdependencies
at all levels," he said.

Title: Forget Big Brother
Source: New York Times (E1,E6)
http://www.nytimes.com/library/tech/98/03/circuits/articles/19data.html
Author: Peter H. Lewis
Issue: Privacy
Description: Nearly everywhere we go these days, computers record small bits
of data that could be accessed by just about anyone if they are interested
enough. Each day we make these bargains of convenience, trading in our
privacy for a little extra time, be it at the ATM, local service station or
logging onto the Internet. Many people accept this as part of growth in the
information age. Yet do we act differently knowing that we are under almost
constant surveillance of one type or another? Maybe in the process of
worrying about George Orwell's totalitarian Big Brother, we forgot to pay
attention to the multitude of "tattletale busybodies." In 1958, Supreme
Court Justice William O. Douglas wrote, "Freedom of movement is basic in our
scheme of values." And yes, we do have an exceptional ability to move freely
about. But don't count on moving about anonymously unless you plan on paying
by cash and traveling by car -- or better yet walking. Marshall McLuhan, the
media critic, wrote about the electronic Global Village in the 1960's. He
was referring to television, which he thought would link people around the
world into something "resembling a tribal community." While many of
McLuhan's ideas have been challenged, "modern McLuhanites would say computer
networks have had more to do with any return to tribalism than, say,
'Baywatch.' But in our current information revolution, the electronic Global
Village may still be a useful metaphor -- for all those nosy neighbors."

Title: Microchips Are Latest Addition To Gear For London's Marathon
Source: New York Times (E4)
http://www.nytimes.com/library/tech/98/03/circuits/articles/19feet.html
Author: Andrew Ross Sorkin
Issue: Lifestyle
Description: Runners in this year's 26.2 mile London Marathon will have to
attach a small microchip to one of their shoelaces. The chip dubbed the
Championchip, which is the size of your thumbnail and weighs only three
grams, is a tiny tracking device designed by Champions Worldwide, a Dutch
timing company. Each chip carries the racer's personal data, including
number and running club. As each runner crosses over strategically placed
mats throughout the course, information is sent to a computer system that
calculates how fast the runner is going. "The system that we are using means
stewards won't have to read the runners' bar codes to give exact finishing
times, even when numerous runners arrive within milliseconds of each other,"
said Martin Trees, marketing director of the London-based unit of Electronic
Data Systems, which will run the tracking system. The chips, which run about
$33 each, will be owned by the marathon.

** Arts **

Title: Aiming Camera at Web, and Himself
Source: New York Times (E3)
http://www.nytimes.com/library/tech/98/03/circuits/voices/19doug.html
Author: pamela LiCalzi O'Connell
Issue: Art
Description: Documentary film maker, Doug Block, is working on a new film
called "Home Page." What makes this film different from his past works is
that it is an account of how the World Wide Web and personal home pages
inspired Block to re-examine the "important" connections in his life. In an
interview, Block said that societies interest in personal home pages
"reflects our navel-gazing, media-saturated, everyone-can-be-a-celebrity
cultures, but it also vividly illustrates people's need to connect to others
at a time when the institutions, rituals and communities that previously
connected us are disappearing." "Home Page" will make its debut in a film
festival this fall.

** Microsoft **

Title: Microsoft Boosted Lobbyist Spending
Source: Washington Post (C5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/19/176l-031998-idx.html
Author: Reuters
Issue: Lobbying
Description: Newly disclosed reports to the government show that the
Microsoft Corp. significantly increased its efforts to influence federal
policy makers as it became entangled in a legal battle with the Justice
Department. In the second half of 1997, Microsoft spent $1.2 million,
attempting to influence Congress and the Clinton administration. That figure
is almost double the $660,000 the corporation spent in the first half of the
year. These figures were compiled for Reuters by the Campaign Study Group,
using the latest reports to the Federal Election Commission and the House of
Representatives.

Title: As Big as Microsoft: Ribbing Gates
Source: New York Times (E5)
http://www.nytimes.com/library/tech/98/03/circuits/articles/19micr.html
Author: Michel Marriott
Issue: Lifestyles
Description: Okay, who out there is starting to get tired of reading (and
writing) about Bill Gates and Microsoft practically every day? Well, now you
have the opportunity to sit back, relax and have some fun with "Gates gags."
What are "Gates gags" you ask? They are "digitalized barbs flung playfully
across cyberspace at the expense of the billionaire computer icon Bill Gates
and the ubiquitous goods of his software company, Microsoft." You can tag
these barbs with another name, but regardless of what you call them, mockery
of the two is flourishing in email exchanged, on the Web and on commercially
available CD-ROM's. You have to know someone with the email attachment "Pie
Bill Gates" to enjoy partaking in a computerized version of the Brussels
cream pie incident. But you can download your very own "babygates" screen
saver as well as have fun dressing a digitalized Gates up in "fanciful
outfits." Just click on the above link and find your fancy at the end of the
article. (To borrow a disclaimer quote from one of these games created by
someone called "The Imposter:" "No offense is meant by this [news summary];
it was simply created just for fun, no other reason.)
*********

Communications-related Headlines for 3/18/98

Universal Service
Telecom AM: Senate Appropriations Approves Bill Changing Universal Service

Education Technology
NYT: Schools May Get Computers, But Can They
Afford to Keep Them?

Campaign Finance Reform
NYT: Cincinnati Tests Limits On Spending In Campaigns

Encryption
NYT: FBI Halts Its Push for Encryption Access Legislation

Merger
WP: CyberCash to Acquire Calif. Software Maker
WSJ: WholeEarth Networks LLC Purchased for $9 Million
WSJ: CyberCash Agrees to Buy ICverify for $57 Million

Philanthropy
WP: Honoring Those Who Improve the Lives of Others

** Universal Service **

Title: Senate Appropriations Approves Bill Changing Universal Service
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The Senate Appropriations Committee approved a bill yesterday
that "would require
the FCC to propose by May 8 a revised administration for its new universal
service programs and explain and justify their funding mechanisms. Citing the
General Accounting Office's finding that the FCC overstepped its legal
authority
in creating the current structure, the bill would require the Commission to
replace the three universal service organizations -- the Universal
Service Administrative Company and its subsidiaries, the Rural Health Care
Corporation and the SLC -- with a single entity." The bill also would require a
report detailing how the programs will be paid for.

** Education Technology **

Title: Schools May Get Computers, But Can They Afford to Keep Them?
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/education/18education.html
Author: Pamela Mendels
Issue: Education Technology
Description: According to a recent report, "School Technology; Five School
Districts' Experiences in Funding Technology Programs," once computers are
in place in a school, officials often lack the funding for other technology
necessities, such as teacher training, computer maintenance and the
replacement of equipment that is out-of-date. Susan J. Lawless, one of the
authors of the 77-page report, published by the General Accounting Office,
said: "Looking forward for the ongoing costs of technology -- staffing,
training, recurring costs of upgrading and replacing equipment -- the
districts have not been able to put together a stable funding source."
Moreover, Lawless said, schools are facing the problem of being financially
strapped and having to pay for more pressing needs. "Well, gee, do you hire
someone to fix the computers when they break down or do you hire more
teachers?" Lawless said, summarizing the dilemma that school officials
confront. "Naturally, the choice is to hire more teachers." The report
focused on a cross-section of ordinary school districts -- from urban
Seattle, Washington, to rural Roswell, New Mexico, to suburban Columbus,
Ohio -- and how they have attempted to wire their classrooms. "Hopefully the
message of the report is some insight into the real-life issues confronting
schools and school districts as they are incorporating technology into their
curriculums," Lawless said.

** Campaign Finance Reform **

Title: Cincinnati Tests Limits On Spending In Campaigns
Source: New York Times (A14)
http://www.nytimes.com/yr/mo/day/news/national/cincinnati-spending-limit...
Author: Katherine Q. Seelye
Issue: Campaign Finance Reform
Description: In Cincinnati, the question put forth to a federal appeals
court yesterday is whether limits on the amount of money a political
candidate can spend on their campaign would violate the candidates right to
free speech. The decision in this case could change the way political
campaigns are conducted in the United States. The case under review is a
landmark 1976 Supreme Court decision that "equated unlimited campaign
spending with free speech." Since that time, the Supreme Court's decision
has aided in the defeat of numerous attempts to reduce the influence of
money in politics. No decision is expected in the Cincinnati case for months.

** Encryption **

Title: FBI Halts Its Push for Encryption Access Legislation
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/18encrypt.html
Author: Jeri Clausing
Issue: Encryption
Description: On Tuesday, a Justice Department official told Congress that
the Federal Bureau of Investigation has, for the moment, joined the White
House in retreating from legislation that would give "law enforcers access
to encrypted computer data and communications." Robert S. Litt, principle
associate deputy attorney general, said: "We are all looking at this point
not to impose mandatory legislation and will work cooperatively with
industry to find whatever solutions are available." When Litt was asked by
Senator Russell Feingold (D-WI) if he was representing the FBI as well, he
replied, "Yes, sir."

** Merger **

Title: CyberCash to Acquire Calif. Software Maker
Source: Washington Post (C11)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/18/104l-031898-idx.html
Author: Rajiv Chandrasekaran
Issue: Merger
Description: CyberCash Inc. a Reston, VA based company that makes technology
which allows merchants to accept payments over the Internet, announced
yesterday that it will acquire ICverify, an Oakland, CA based company that
makes credit-card processing software, for about $57 million in cash and
stock. Through the acquisition, Cybercash hopes to expand its product line
and offer customers software that handles conventional and Internet-based
transactions.

Title: WholeEarth Networks LLC Purchased for $9 Million
Source: Wall Street Journal (B5)
http://wsj.com/
Issue: Merger
Description: GST Telecommunications agreed to acquire one of the Internet's
pioneers, Whole Earth Networks LLC, for $9 million in cash and the
assumption of certain liabilities. The San Francisco Internet provider has
14,500 subscribers and is the current home of the Well, one of the
Internet's most vocal and vibrant on-line communities. As part of the deal,
Whole Earth Networks will keep its name and become part of GST's
data-services operation.

Title: CyberCash Agrees to Buy ICverify for $57 Million
Source: Wall Street Journal (B6)
http://wsj.com/
Issue: Merger
Description: CyberCash, an Internet electronic-payment company, said it
agreed to acquire ICverify, a closely held maker of software for retailers
to process payments, in a cash-and-stock deal valued at roughly $57 million.
CyberCash said the shareholders of Icverify will receive $16 million in cash
and 2.3 million shares of CyberCash. The move will allow CyberCash and
Icverify to raid each other's customer lists to build business. It will also
allow the companies to offer a more complete product line, giving merchants
automated payment plans to use both on the Internet and actual stores.

** Philanthropy **

Title: Honoring Those Who Improve the Lives of Others
Source: Washington Post (B1,B4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/18/165l-031898-idx.html
Author: Cindy Loose
Issue: Philanthropy
Description: Last night five people were honored by the Community Foundation
for the National Capitol Region in Washington DC. The foundation, which
provides grants to grass-roots agencies, wants to foster leaders by showing
examples of commendable deeds and presenting annual awards, said Terri Lee
Freeman, president of the group. Those honored do not have the status of
"Washingtonian of the Year" winners, she said. "But these are the folks
toiling in their communities, truly making a difference." This years
honorees are; Pilar Laugel, Dorothea Ferrell, Paula Poulis, Pastor Abba
Tesfamariam Baraki, and Hank Carde.
*********

Communications-related Headlines for 3/17/98 (Happy St. Pat's

Universal Service
TelecomAM: States Ask FCC To Cooperate More On Universal Service Reform

Long Distance & Competition
TelecomAM: McCain Introduces Bill To Allow Bell Companies Into Long Distance
TelecomAM: Burns Urges FCC to 'Act Expeditiously' to Ease Regulation
TelecomAM: Dewine Says His Subcommittee Will Be Telecom 'Player'
TelecomAM: Powell Highlights Regulatory Philosophy To Investors
TelecomAM: MCI Uses 'Ivan' Campaign To Highlight Lack of Competition

Security
WSJ: Scam Aimed at Corporate Phone Systems Receives a Big Warning on the
Internet

Television
NTIA: The Unconstitutionality of Federally Mandated "Free Air Time"

Campaign Finance Reform
WP: Cincinnati Case to Address Constitutionality of
Campaign Fund Caps
WP: Get Ready for the 'Issue Ads'

Minorities/Jobs
FCC: Creating Conditions for Positive Change

Computer Industry
WP: Study Calls Chip Key Economic Driver
NYT: Internet Is Expanding Arms Race With Junk E-Mail
NYT: Overcoming Skepticism, French Plan All-Out Internet Celebration

Microsoft
WP: Special Advisor Was Leaning Against Microsoft
WSJ: Microsoft Probe Expanded to Cover Sun's Java

Mergers
WP: Alltel Plans $4 Billion Acquisition
NYT: Alltel to Buy Big Carrier of Cellular Calls
WP: Computer Associates' Bid for CSC Expires
WP: Ciena Stock Gains on News of Sprint Contract

** Universal Service **

Title: States Ask FCC To Cooperate More On Universal Service Reform
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The FCC should allow state regulators on the Federal-State
Joint Board to review decisions that change the universal service program,
state members of the panel told the FCC Mar. 11 in a petition. State
regulators called for more input on: 1) whether the FCC should fund only 25%
of the subsidy and leave the remaining "shortfall" to the states; 2) whether
the federal part of the subsidy should be applied only to reducing
interstate access charges; 3) what should be used for collecting and
distributing funds to the states; and 4) what role the FCC should have in making
the subsidy explicit. The state regulators said none of those items were
considered by the Joint Board before the FCC adopted them, yet all four
"will have a significant and direct impact on state policy."

** Long Distance & Competition **

Title: McCain Introduces Bill To Allow Bell Companies Into Long Distance
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Senate Commerce Committee Chairman John McCain (R-AZ)
introduced his
promised bill to free Bell companies from the Telecom Act's restrictions --
including the ban on long distance service -- within one year.
In its findings, the Telecommunications Competition Act of 1998 says that
"existing regulatory devices no longer work" and that antitrust issues
should be handled by the Justice Dept., with the FCC confined to "the
regulatory perspective."

Title: Burns Urges FCC to 'Act Expeditiously' to Ease Regulation
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Regulation
Description: Senate Communications Subcommittee Chairman Conrad Burns (R-MT)
has urged the FCC to "act expeditiously" on Bell company petitions for eased
regulation of advanced network infrastructure. In a letter to FCC Chairman
Kennard, Sen. Burns said he shares US West's concern that "it may never make
economic sense" for the company to provide Internet back bone service under
the restrictions currently placed on Bell companies. He said there is "no
question" that Section 706 of the Telecom Act authorizes the FCC to grant
regulatory relief.

Title: Dewine Says His Subcommittee Will Be Telecom 'Player'
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Antitrust
Description: Senate Antitrust Subcommittee Chairman Mike Dewine (R-OH)
intends his panel to be an important "player" in the telecom industry.
Dewine said his subcommittee won't introduce new legislation, but will use
its oversight powers on "issues that aren't being looked at or aren't being
looked at in as thorough a manner as we might want." As examples of how it
will proceed, Dewine pointed to his draft of a bill to break up Bell
companies, which he said has sparked new dialogue with the companies,
forcing them to talk about the Section 271 process.

Title: Powell Highlights Regulatory Philosophy To Investors
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Regulation/Competition
Description: FCC Commissioner Powell outlined his ideas for telecom
regulation that his aides said highlights some major themes of his term.
Powell said the FCC should renew faith in the free market, shift focus to
encouraging innovation, prepare for the end of the current regulatory
regime, and begin to regulate "efficiently." Powell said that technological
changes require the FCC to change its "balkanized regulatory framework"
because technology has eroded and will soon eliminate the "legal, economic
and conceptual boundaries" of communications media.

Title: MCI Uses 'Ivan' Campaign To Highlight Lack of Competition
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Competition/Advertising
Description: MCI announced a new advertising campaign, using a character
named "Ivan" to show that Bell Atlantic has no more competition than existed
in the Soviet bloc. In TV spots to be aired in Washington, DC, and Albany --
homes of the regulatory bodies that will decide on Bell Atlantic's long
distance application -- Ivan, dressed in parka and fur hat, says there is no
competition "where I live." Ivan then is seen standing in front of the NYC
skyline. MCI officials said the ad would inject "healthy common sense" into
what Bell companies have tried to make "a confusing legal debate."

** Security **

Title: Scam Aimed at Corporate Phone Systems Receives a Big Warning on the
Internet
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Security
Description: The scam goes like this: a caller identifying himself as a
phone-company technician -- usually from AT&T -- says he's checking the line
and needs the customer to dial "9-0" and the pound symbol. On certain phone
systems, that combination gets the caller and outside phone line, which can
then be used to make long-distance calls. An e-mail message warning
consumers of this scenario currently is making the rounds, chain-letter
style, via the Internet. Concerned recipients are forwarding copies of the
message to their friends. Big phone companies and equipment vendors say that
the scam isn't new, and that customers are immune to this particular flavor
of fraud. And most big companies have either programmed their systems to
block access to outside phone lines, or they have trained receptionists to
be wary of so-called technicians testing outside lines.

** Television **

Title: The Unconstitutionality of Federally Mandated "Free Air Time"
Source: NTIA
http://www.ntia.doc.gov/pubintadvcom/marchmtg/DeVore.htm
Author: P. Cameron DeVore, Davis Wright Tremaine LLP
Issue: Free Time For Candidates
Description: A Summary Prepared for The National Association of Broadcasters
for Presentation at a Meeting of the Presidential Advisory Committee on
Public Interest Obligations of Digital Television Broadcasters. [For a full
summary of the meeting see http://www.benton.org/Policy/TV/meeting4.html]

** Campaign Finance Reform **

Title: Cincinnati Case to Address Constitutionality of Campaign Fund Caps
Source: Washington Post (A19)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/055l-031798-idx.html
Author: Ruth Marcus
Issue: Campaign Finance Reform
Description: In an effort to curb the ballooning cost of campaigning in
Cincinnati the city council adopted strict ceilings on what a candidate can
spend on the campaign trail -- limiting campaign expenditures to no more
than three times the annual salary for the council jobs, or about $140,000
total. Today, a federal appeals court will hear a challenge to the city's
ordinance. "What's at stake here is the question of whether the city of
Cincinnati has the right to enact reasonable spending limits to protect the
integrity of its election process," said John Bonifaz of the National Voting
Rights Institute, who will defend the law today. Bonifaz's challenge will be
the Supreme Court ruling on Buckley v. Valeo, 22 years ago. In the ruling,
the Supreme Court "rejected Congress's attempt to impose mandatory spending
limits on congressional candidates. The court in Buckley upheld the
constitutionality of contribution limits on the grounds that they were
needed to prevent the appearance and reality of corruption. But equating
political spending with speech, the court said limits on expenditures
violated the First Amendment and were not justified by the exploding cost of
elections, the corrupting influence of large contributions or the need to
equalize the financial resources of candidates."

Title: Get Ready for the 'Issue Ads'
Source: Washington Post (A21)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/013l-031798-idx.html
Author: Elizabeth Drew
Issue: Campaign Finance Reform
Description: There are two thinly disguised campaigning phenomena that we
can all expect to see across the country this fall as parties work to get
around the contribution limits of the campaign finance law. "Issue ads" and
unlimited individual contributions, or direct contributions by labor and
corporations (including nonprofit ones), are the two destroyers -- connected
by the fact that issue ads are paid for with soft money that isn't supposed
to be used in federal campaigns. The 1996 election produced elaborate
stories that "such ads were produced by groups 'independent' of the
campaign, or political party, they were intended to help." The Federal
Election Commission and several reformers are now working to draw up a
definition of "coordination" to prevent the groups running the issue ads
from colluding with the campaigns they are trying to help. This new
phenomena leads back to the out-dated Supreme Court ruling in Buckley v.
Valeo in 1976. The court said, among other things, that it found "no threat
to the new Federal Election Campaign Act, passed in 1974, from "independent"
groups, which wasn't surprising because at that time there were no such
groups. Since then, the decision has been used by opponents of reform, who
maintain that the court made a flat equation between money and speech. It
did not. The court was actually weighing competing values -- free speech and
clean elections."

** Minorities/Jobs **

Title: Creating Conditions for Positive Change
Source: FCC
http://www.fcc.gov/Speeches/Kennard/spwek809.html
Author: Chairman Kennard
Issue: Minorities/Jobs
Description: Remarks by William E. Kennard to The Rainbow/PUSH Coalition.
"Telecommunications is now 14% of the economy -- and growing. The United
States will need 1.3 million new workers in information technology over the
next eight years. We're going to need 95,000 new computer scientists,
analysts and programmers each year....We've got work to do. Because that's
not happening today. Not when 78% of schools in affluent communities have
Internet access -- but only half the schools in low-income areas. Not when
the percentage of white children with home computers is triple the
percentage of black and Latino kids. Not when only 2.8% of the owners of the
broadcast stations in this country are minority. And the number is declining."

** Computer Industry **

Title: Study Calls Chip Key Economic Driver
Source: Washington Post (C4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/108l-031798-idx.html
Author: Elizabeth Corcoran
Issue: Computer Industry/Jobs
Description: According to a study to be released tomorrow by the
Semiconductor Industry Association, U.S. companies that build computer chips
and related electronic devices created goods worth $41.6 billion in 1996.
The study was issued as part of a lobbying trip to Washington by 15
executives in the chip-making industry. The executives plan to voice their
support for "raising the ceiling on immigration and boosting funding for
research at U.S. universities" as they meet with members of the Clinton
Administration and Congress. Their argument is simple: "What helps the chip
industry will help the U.S. economy."

Title: Internet Is Expanding Arms Race With Junk E-Mail
Source: New York Times (D1,D6)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/17spam.html
Author: John Markoff
Issue: E-Mail
Description: Sendmail, the electronic post office that is used on about 75
percent of the computers that route e-mail messages, is being fitted with a
powerful set of tools to combat spam messages. Eric Allman, Sendmail's
author, is expected to announce today the addition of anti-spam tools to
version 8.9 of the software. This move is part of Allman's plan "to create a
company that will continue to develop new features for the free version of
the program and sell software and support services to business users."

Title: Overcoming Skepticism, French Plan All-Out Internet Celebration
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/eurobytes/17euro.html
Author: Bruno Giussani
Issue: International
Description: Next Friday and Saturday, March 20 and 21, will be "la Fete de
l'Internet" -- a national French celebration of the Internet. As part of the
celebrations, schools will offer parents and alumni Web tutorials, artists
will create interactive works, "net-vans" will roam the streets, politicians
will chat online with their constituencies, and companies will hand out
connection software packages for practically nothing. All of this and more
coming from the European country most "skeptical and doubtful" of this "new
form of American colonialism," as one of its ministers said last year. But
with Internet usage figures up 100 percent from last year, it appears that
France's "diatribes against the global network and the threat it poses to
the French language and culture are quickly dissolving." According to Bruno
Oudet, the president of the French branch of the Internet Society (ISOC) and
one of the people behind the festival, the turning point in people's
attitudes came last year when Lionel Jospin, the socialist Prime Minister,
endorsed the Internet in a speech saying it was crucial to business and a
cultural tool for a "responsible information society." Jospin pledged more
than a billion French francs (about $165 million) to wire schools, train
teachers, support innovative companies, ease the contact between citizens
and the administration, and help make newspapers, books and artworks
accessible on the Internet.

** Microsoft **

Title: Special Advisor Was Leaning Against Microsoft
Source: Washington Post (C4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/117l-031798-idx.html
Author: David Lawsky/Reuters
Issue: Antitrust
Description: According to documents made public yesterday, Lawrence Lessig,
Harvard Law Prof. and appointed "special master" in the government's
antitrust case against the Microsoft Corp., was preparing to recommend a
ruling against Microsoft when he was temporarily removed from his post.
"Microsoft must, for a given product, leave [computer makers] free" to offer
rivals' software even if they use its Windows 95 operating system, said
Lessig in an 11-page letter to Microsoft and the Justice Department. Last
month, a federal appeals court put Lessig's job on hold, at least until late
April.

Title: Microsoft Probe Expanded to Cover Sun's Java
Source: Wall Street Journal (B6)
http://wsj.com/
Author: David Bank & John R. Wilke
Issue: Antitrust
Description: The Justice Dept.'s antitrust investigation of Microsoft has
expanded to include issues related to Sun's Java software. A spokeswoman for
Sun said the company received a civil subpoena from the Justice Dept. and,
separately, from several states investigating the software giant. The move
broadens the government's investigation beyond Microsoft's practices in the
market for Internet-browser software. Sun's Java software is considered a
potential competitor to Microsoft's dominant Windows operating system. Sun's
CEO, Scott McNealy, is a vocal critic of Microsoft. His company has filed a
civil suit against Microsoft alleging that it violated terms of its license
to use Java. The Sun spokeswoman said the subpoenas, "are related to the
Microsoft issue" but wouldn't detail when they were received or what
documents or information they sought.

** Merger **

Title: Alltel Plans $4 Billion Acquisition
Source: Washington Post (C1,C5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/104l-031798-idx.html
Author: Mike Mills
Issue: Merger
Description: The Alltel Corp., and independent telephone company, announced
that it will buy 360 Communications Co., a big cellular telephone carrier,
for $4 billion in stock, plus debt. The acquisition will make Alltel one of
the largest cellular companies in the United States. Alltel is about to
complete a 6,800 mile fiber-optic network that will connect all of its
service areas and estimates it will take an additional 1,800 miles of
fiber-optic to tie all of 360 Communications coverage areas into its
network. Joe T. Ford, Alltel's chairman and chief executive, said: "When the
network is complete, transport costs will be reduced dramatically, and the
traffic volume can increase substantially."

Title: Alltel to Buy Big Carrier of Cellular Calls
Source: New York Times (D3)
http://www.nytimes.com/yr/mo/day/news/financial/alltel.html
Author: Seth Schiesel
Issue: Merger
Description: Alltel's agreement to acquire 360 Communication Co. will make
Alltel a major player in the Southeastern and mid-Atlantic wireless phone
market. The combined company will serve roughly 6.5 million customers in 22
states. Approximately two-thirds of those customers would use the company's
wireless phones. Dennis E. Foster, 360 Communications' chief executive,
would become vice chairman of Alltel. "They have been a more established,
stronger company," said Foster, in regards to Alltel. "And their credit
rating's better. The interesting thing for us is there are no market
conflicts and there is great adjacency of markets."

Title: Computer Associates' Bid for CSC Expires
Source: Washington Post (C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/112l-031798-idx.html
Author: Mark Leibovich
Issue: Merger
Description: Yesterday, Computer Associates International Inc.'s 9.8 billion
"hostile offer" for Computer Sciences Corp. quietly expired.

Title: Ciena Stock Gains on News of Sprint Contract
Source: Washington Post (C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/17/109l-031798-idx.html
Author: Alex Dominguez
Issue: Merger
Description: The Ciena Corp. announced yesterday that it had signed a
three-year contract to provide the Sprint Corp. with fiber-optic equipment.
The fiber-optic equipment will allow Sprint to more than double the capacity
of its current network.
*********
Sorry we're late -- big day!

Communications-related Headlines for 3/16/98

Journalism
NYT: Study Finds Less Traditional News as Outlets Seek
More 'Relevant' Content

Television
B&C: White House threatens veto
B&C: V-chips to debut on July 1, 1999
WSJ: Cable-TV Giant Brawls With a Utility
B&C: New York loves 'Seinfeld'

Internet
NYT: Teachers See Benefits of Internet, But Drawbacks Raise Concerns
NYT: Taxing Sales on the Internet; Many Governors vs.
Congressional Legislation
NYT: With Gotocom's Search Engine, the Highest Bidder Shall
Be Ranked First
NYT: Filtering the Internet

Telephony
FCC: Premature Bell Entry into Long Distance Will Create
Megamergers, Not Competition
FCC: Technology and Regulatory Thinking: Albert Einstein's Warning
NYT: Cellular Carriers Set $4.1 Billion Merger

Security
WP: The Guardians of Computer Security

Our Man Bill
NYT: Critiques of Microsoft (With a Wink to Pogo)
WSJ: Gates to Write Book With Microsoft Researcher

** Journalism **

Title: Study Finds Less Traditional News as Outlets Seek
More 'Relevant' Content
Source: New York Times (D8)
http://www.nytimes.com/yr/mo/day/news/financial/news-coverage-media.html
Author: Iver Peterson
Issue: Journalism
Description: "The Project for Excellence in Journalism, a non-profit
research center financed by Pew Charitable Trust, classified 3,760 reports
on the three nightly network news programs and in major newspapers and
weekly news magazines in March 1977, 1987 and 1997. The number of stories
devoted to straight news -- what happened yesterday --" declined from 52.3
percent in 1977 to 31.5 percent in 1997. Features on celebrities, human
interest stories and scandals increased from 15.4 percent in 1977 to 43
percent in 1997. "While content studies have their limits, and the question
of what is entertainment and what is news is open to question," the study
said, "the data clearly indicate that there have been major shifts in how
the news media define the news."

** Television **

Title: White House threatens veto
Source: Broadcasting&Cable (p.8)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Free Time for Candidates
Description: The White House has promised to veto a spending bill if the
Senate attaches provisions that would keep the Federal Communications
Commission from requiring free time for political candidates. "I would be
very surprised if that provision came out of the bill," said Sen. Trent
Lott's (R-MS) chief of staff. "It's something Republicans and some
Democrats...feel strongly about, that the FCC does not have the authority to
do this." [See the President's weekly radio address
http://www.whitehouse.gov/WH/html/1998-03-14.html for more information]

Title: V-chips to debut on July 1, 1999
Source: Broadcasting&Cable (p.8)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: V-Chip
Description: Last week, the Federal Communications Commission adopted
technical standards and approved the television industry's new rating
system. Half of all TV sets will be equipped with the blocking technology by
July 1999. All sets will be v-chip equipped by January 1, 2000. Only NBC and
cable channel BET have resisted the rating system and the FCC may weigh that
when licenses for NBC affiliates come up for renewal.

Title: Cable-TV Giant Brawls With a Utility
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Ross Kerber
Issue: Cable/Competition
Description: A turf war in Massachusetts between Cablevision Systems and
Boston Edison Co. has broad implications for the future of cable TV,
Internet service, and the deregulation of utilities throughout the country.
Their fight is over 126 miles of fiber-optic data lines that the utility
began laying in eastern Massachusetts in 1990. In Nov. 1996, Boston Edison
assigned use of those lines to an unregulated telecommunications joint
venture, gaining access to Cablevision's previously exclusive franchise. At
issue is the dollar value of the fiber-optic lines. Boston Edison
transferred the lines to its joint venture for their book value of $7
million. Cablevision maintains that's a fraction of their true worth and
deprives the utility's ratepayers of as much as $67 million. Cablevision has
asked state officials to re-examine the transfer of Boston Edison's
fiber-optic lines to the joint venture, and its request has won the support
of the Massachusetts's attorney general. Boston Edison says the assets were
fairly valued and argues that Cablevision is merely trying to keep out
competition.

Title: New York loves 'Seinfeld'
Source: Broadcasting&Cable (p.4)
http://www.broadcastingcable.com/
Author: Joe Schlosser
Issue: Television Economics
Description: Columbia TriStar Television, the distributor of Seinfeld,
congratulated WPIX-TV in New York for beating all of the 11 p.m. New York
City newscasts will reruns of the popular comedy. The second cycle of
Seinfeld reruns is expected to generate $4-$6 million per episode after it
has been sold in all markets. Columbia TriStar's ad campaign coincides with
the opening of bidding for the show in the nation's largest market. In NYC,
the reruns are expected to generate $250,000-$350,000 per week.

** Internet **

Title: Teachers See Benefits of Internet, But Drawbacks Raise Concerns
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/15poll.html
Author: Pamela Mendels
Issue: EdTech
Description: The Global Strategy Group Inc., a New York City-based public
opinion research company, conducted a survey in January based on telephone
interviews with 400 teachers and 1,600 other adults nation-wide. The poll
found that 48 percent of the teachers responded "yes" to the question: Do
you use the Internet in teaching? Yet at the same time, 60 percent of
teachers and 62 percent of the adults surveyed said they were "fairly
concerned" or "very concerned" about students using the Internet. Peter J.
Feld, director of research for Global Strategy Group Inc,. said: "What was
most striking to me was that teachers see both sides: the benefits of the
Internet and the downside." He said that "teachers see the Internet as a
plus, but it has drawbacks and they are looking for ways to cope with the
drawbacks." Based on focus groups conducted in preparation for the survey,
Feld identified several problems that teachers envision with using the
Internet for education. Among them: "that information available on the World
Wide Web is of uneven quality; that the unscrupulous could prey on children;
that there is a glut of online information and that navigating the Web can
be cumbersome and time-consuming." At the same time, Feld points out that
he was struck by the fact that although the World Wide Web is barely four
years old, almost half of the teachers surveyed are using it and other parts
of the Internet for educational purposes. The survey was commissioned by MCI
in connection with the launch of MarcoPolo, "a new free Web site and
education initiative targeted at teachers, that MCI helped develop with
National Geographic, the National Endowment for the Humanities, the American
Association for the Advancement of Science and the National Council of
Economic Education. [For more on connecting schools, see
http://www.benton.org/Library/Schools/. For more on Marcopolo see
http://www.mci.com/aboutus/company/corporate/marcopolo/mp.shtml]

Title: Taxing Sales on the Internet; Many Governors vs.
Congressional Legislation
Source: New York Times (D1,D6)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16nettax.html
Author: Peter Passell
Issue: Electronic Commerce
Description: In response to fears that conflicting state and local Internet
taxes will stunt the growth of Internet commerce, Congress is working to
pass legislation that would "bar sales tax on Internet transactions" until
2004. But some analysts and many governors fear that "a federal moratorium
would set a precedent that would permanently deprive state and local
governments of a huge potential revenue source." House leaders are promising
a vote on the bill titled the "Internet Tax Freedom Act," sponsored by Rep.
Christopher Cox (R-CA), this month.

Title: With Gotocom's Search Engine, the Highest Bidder Shall
Be Ranked First
Source: New York Times (D5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16search.html
Author: Laurie J. Flynn
Issue: Internet Services
Description: Search engines were initially developed to help the user find
information among the million of sites on the World Wide Web. Today,
however, search engines are offering more than just tools for searching.
Alan Braverman, Internet analyst at Credit Suisse First Boston, said: "The
function of searching has become a commodity...so search engine companies
are making a transition into Internet media companies." Not only does this
translate into visitors to sites like Yahoo, Excite and Infoseek staying
longer but also into more advertising and thus greater profits. While Jerry
Yand, co-founder of Yahoo, acknowledges that Yahoo is "certainly becoming
more online service-like." He also points out that this move "doesn't make
our navigation service any less important." But while sites like Yahoo are
working to become destinations in themselves, a new start-up called Goto.com
is taking a completely different approach. Goto.com, a spin-off of Idealab,
says it will focus entirely on searching and will make money by encouraging
Web sites to pay for more "prominent placement" in the search results. Bill
Gross, president of Idealab, said that one of the main differences between
Goto.com's approach and that of other search engines is that "they make
money when you stay -- I make money when your leave...We're changing the
alignment of the proposition. We really are a true search engine."

Title: Filtering the Internet
Source: New York Times (A28)
http://www.nytimes.com/yr/mo/day/editorial/index.map?158,150
Author: NYT Editorial Staff
Issue: Internet Regulation/EdTech
Description: Less than a year after the Supreme Court struck down the 1996
Communications Decency Act, Congress is once again considering legislation
that would infringe upon free speech in the name of protecting children.
Senator John McCain (R-AZ), is sponsoring a bill that would require schools
and libraries receiving federal subsidies for Internet hook-ups to install
filtering software on their computers. Sen. McCain has anticipated the
potential for opposition to this bill, and has thus kept open compromise
possibilities for when it reaches the Senate floor. On the other hand,
Senator Conrad Burns (MT) has offered a more sensible, less controversial
approach, to protecting children from smut and pornographic material on the
Internet. Sen. Burns' substitute bill would require schools and libraries
that receive federal subsidies to adopt "appropriate Internet use policies"
as they see fit for children. Many public institutions have already
implemented this approach without denying children and adults access to the
huge amounts of information that are available to them.

** Telephony **

Title: Premature Bell Entry into Long Distance Will Create
Megamergers, Not Competition
Source: FCC
http://www.fcc.gov/Speeches/Kennard/spwek808.html
Author: Chairman Kennard
Issue: Regulation/Competition
Description: FCC Chairman William Kennard warned that approval of Bell entry
into long distance before local markets are open will create megamergers,
not competition. In warning of unwarranted consolidation, Kennard said that
if the FCC "permit[s] Bell entry before the local market is open to
competition, long distance companies will have no alternatives but to merge
with an ILEC."

Title: Technology and Regulatory Thinking: Albert Einstein's Warning
Source: FCC
http://www.fcc.gov/Speeches/Powell/spmkp804.html
Author: Commissioner Michael Powell
Issue: Regulation/Competition
Description: "At a meeting hosted by "The Precursor Group" of the securities
brokerage firm Legg Mason, Inc., FCC Commissioner Michael Powell urged an
audience of investment analysts, policymakers, and industry representatives,
to "keep a watchful eye on communications developments in an effort to
predict whether proposed [communications] reforms will be implemented and
whether they will be successful." Quoting Albert Einstein, Powell said, "The
unleashed power of the atom has changed everything save our modes of
thinking and we thus drift toward unparalleled catastrophe." Reflecting on
where is the country in the communications revolution, Powell remarked "I
often think of Einstein's warning," and questioned whether the industry is
"truly changing enough, and quickly enough to accommodate" the
transformation to a pro-competitive, de-regulatory communications regime.

Title: Cellular Carriers Set $4.1 Billion Merger
Source: New York Times (A14)
http://www.nytimes.com/yr/mo/day/news/financial/cellphone-deal.html
Author: Associated Press
Issue: Merger
Description: Last night, the Alltel Corp and 360 Communications Co., a
wireless telephone carrier, reached a $4.1 billion merger agreement.
Executives close to the companies say that the deal is aimed at creating a
new force in the cellular-telephone industry.

** Security **

Title: The Guardians of Computer Security
Source: Washington Post (F12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/16/022l-031698-idx.html
Author: Rajiv Chandrasekaran
Issue: Computer Security/Mergers
Description: Trusted Information, V-One and Axent, three fast-growing
computer-security companies, have seen demand for their products surge over
the last two years, as corporations have decided to connect more of their
computers to local area networks and the 'Net. Trusted makes "firewalls,"
which act like doors to parts of the network, only admitting authorized
users. V-One specializes in "virtual private network" technology. Axent
recently acquired Raptor Systems, a firewall maker, and has made itself the
nation's 3rd-largest computer-security firm. Network Assoc. Inc. said it
would buy Trusted for $307 million, a deal that would make it the biggest
player in the security market. Execs and industry analysts say the deals
largely were driven by a need to offer one-stop shopping to corporate
customers, who have begun to view security products not as disparate
utilities that can be picked up from various vendors but as a central
component of their computing strategy that they want to buy from a large firm.

** Our Man Bill **

Title: Critiques of Microsoft (With a Wink to Pogo)
Source: New York Times (D7)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16microsoft.html
Author: Steve Lohr
Issue: Competition/Microsoft
Description: A three-year study, conducted by a four-person team led by
Murali Chandrashekaran, an associate professor at the Univ. of Cincinnati's
business school, found that the "crucial variable in determining software
innovation was not competition but the health of the company." The study
concluded that the more successful the company, the less incentive it has to
innovate. Chandrashekaran said: "Success-driven complacency is the real
culprit behind a failure to innovate, not a lack of competition." So the
study suggests a "line of reasoning" not yet pondered by Microsoft's crew of
lawyers and PR consultants. "It would be called the Pogo defense, recalling
the observation of Walt Kelly's cartoon 'possum: 'Yep, son, we have met the
enemy and he is us.'"

Title: Gates to Write Book With Microsoft Researcher
Source: Wall Street Journal (B10)
http://wsj.com/
Issue: Lifestyles
Description: Bill Gates is writing a second book, this time focusing on how
businesses are making intelligent uses of technology. Collin Hemingway, a
Microsoft researcher who is co-writing the book, said the book isn't simply
a sales pitch for the software giant's products. He said the book wasn't an
attempt to improve Mr. Gates's image. "We get a lot of questions about how
do you run an $11 billion company using PC software," Mr. Hemingway said.
[So do we]
*********

Communications-related Headlines for 3/12/98

Television
KFF: Assessing Local Television News Coverage of Health Issues
NYT: FCC Approves Rating System for TV; Sets With Blockers
Will Be on Market Within a Year
FCC: Commission Finds Industry Video Programming Rating
System Acceptable
FCC: FCC Begins Inquiry Into Broadcast Ownership Rules
WP: P.I.G. Network

Legislation
NYT: Senate Panel Moves Again to Limit Children's Access to Net Porn
TelecomAM: Senate Commerce Committee Passes Three Telecom Bills
TelecomAM: Markey Introduces Schools and Libraries Internet Filtering Bill

Telephony
WP: MCI-Worldcom
TelecomAM: MCI Accuses GTE Of 'Orchestrating' Opposition To WorldCom Deal
TelecomAM: IXCS In Texas Urge $750M Cut In SBC Access Charges
As LD Entry Condition
TelecomAM: Joint Board Wants Crack At Jurisdictional High-Cost Support Issues
WSJ: CellularVision's Hopes for Wireless Service Fall Flat

Internet
WSJ: Netscape to Expand Internet Service, Boosting Its Rivalry With
Other Firms
WSJ: Sendmail Software's Author Is Starting Firm to Develop and
Distribute Program

Lifestyles of the Rich and Famous
NYT: Aiming for Business This Time, Gates Plans 2d Book

** Television **

Title: Assessing Local Television News Coverage of Health Issues
Source: Kaiser Family Foundation
http://www.kff.org/archive/media/general/crime/crime.html
Issue: Television
Description: [Following up on yesterday's Washington Post article] "A new
analysis of local television news programs documents that crime is indeed
the single biggest topic of local news coverage, and most crime stories
focus on murders, shootings, and other violent crime."

Title: FCC Approves Rating System for TV; Sets With Blockers
Will Be on Market Within a Year
Source: New York Times (A16)
http://www.nytimes.com/yr/mo/day/news/washpol/tv-ratings.html
Author: Lawrie Mifflin
Issue: V-Chip
Description: Yesterday, the Federal Communications Commission approved the
TV-ratings system developed last year by broadcasters, parent advocacy
groups and the Motion Picture Association of America. Television
manufacturers must now begin making TV sets that can block programs
according to the new rating system by installing blocking circuitry, called
a v-chip. The v-chip will enable parents to block objectionable programs
from being viewed on their television set. All TV sets with a screen 13" or
larger will be required to have v-chip capability by January 1, 2000.

Title: Commission Finds Industry Video Programming Rating System Acceptable
Source: FCC
http://www.fcc.gov/Bureaus/Cable/News_Releases/1998/nrcb8003.html
Issue: V-Chip
Description: "The Commission adopted an order finding acceptable the video
programming rating system currently in voluntary use and established
technical requirements for consumer electronic equipment to enable blocking
of video programming. These two actions will help provide parents with the
information and ability to make informed viewing decisions for their families."

Title: FCC Begins Inquiry Into Broadcast Ownership Rules
Source: FCC
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1998/nrmm8007.html
Issue: Ownership
Description: "The FCC began a formal inquiry to review all of its broadcast
ownership rules as required by the Telecommunications Act of 1996. Section
202(h) of the 1996 Telecom Act requires the FCC to review the broadcast
ownership rules every two years to "determine whether any of such rules are
necessary in the public interest as the result of competition," and to
repeal or modify any rules that are determined to no longer be in the public
interest. The Notice of Inquiry adopted by the Commission today is its first
step in carrying out this statutory mandate for the 1998 biennial review of
its broadcast ownership rules. The Commission said that if in this review it
determined that any of its broadcast ownership rules were no longer in the
public interest, it would subsequently commence an appropriate Notice(s) of
Proposed Rule Making to modify or repeal the rule(s)."

Title: P.I.G. Network
Source: Washington Post (A24)
http://www.washingtonpost.com/
Author: HERBlock
Issue: Free Time for Candidates
Description: Editorial Cartoon. Picture this: a hefty looking pig/TV
reporter smoking a
cigar in a suit and tie with lights and camera shining down upon him. He has
a stack of papers to his left and in his hand is holding a piece of paper
that says: "Proposal for some free time for candidates before elections."
Then in the (bubble) space above his head it reads: "This is broadcasting
network P.I.G. enjoying free
public-air -- here is a silly suggestion that we give back a few bucks worth
of time -- right back after a few more commercials..." [For a full viewing
of this image, see the upper right corner of sec.A, pg24 in today's WPost.]

** Legislation **

Title: Senate Panel Moves Again to Limit Children's Access to Net Porn
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/13senate.html
Author: Jeri Clausing
Issue: Internet Regulation
Description: The Senate Commerce Committee approved two bills yesterday
intended to limit children's access to "smut" on the Internet. One bill
targets the distribution of pornography to anyone under the age of 18 on the
Web, the other would require schools that receive
federal subsidies for Internet connections to install filtering software on
their computers. "This is just Congress again making the same mistake they
made with the Communications Decency Act, expecting that they can control
content on the Internet and, I think, leading constituents down an absolute
blind alley," said Daniel J. Weitzner, deputy director of the Center for
Democracy and Technology. Ann Beeson, an American Civil Liberties Union
national staff lawyer, said, "We tend to assume that just because the courts
have become educated about these issues, which clearly they have...we tend
to assume legislators have become educated too, which clearly they haven't,
especially at the state level." Senator Dan Coates (R-IN), who sponsored the
bill targeting
commercial distribution called Thursday's vote "a great victory, and the
first big step on the way to the Senate floor."

Title: Senate Commerce Committee Passes Three Telecom Bills
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Legislation
Description: The Senate Commerce Committee passed bills to 1) reduce slamming,
2) require schools and libraries receiving subsidies for Internet hookups to
install filtering software, and 3) ban commercial distribution on the Web
of material harmful to minors. It didn't vote on funding research on the
Next Generation Internet. The anti-slamming bill, sponsored by Committee
Chairman John McCain (R-AZ) and five others, seemed to have little
opposition and
John McCain said it has overwhelming popular support. The Committee approved
an amendment by Sen. Conrad Burns requiring the FCC to report to Congress on
the worst slammers. Sen. McCain's Internet School Filtering Act received
bipartisan praise for leaving to local authorities decisions as to what sort
of software they need and what content to filter.

Title: Markey Introduces Schools and Libraries Internet Filtering Bill
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Legislation
Description: Rep. Ed Markey (D-MA) introduced his version of a measure linking
subsidies for hooking schools and libraries to the Internet to protecting
children from indecency. The House Telecom Subcommittee's ranking Democrat
proposed a bill requiring schools and libraries to "establish a policy with
respect to access to material that is inappropriate for children." Similar
to the suggestion advanced by Sen. Conrad Burns (R-MT), Markey's bill would
allow
more local flexibility than the one introduced by Sen. Commerce Committee
Chairman John McCain (R-AZ) and passed by the Senate Committee. Sen.
McCain's bill
requires schools and libraries to install and use filtering software.

** Telephony **

Title: MCI-Worldcom
Source: Washington Post (F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/13/052l-031398-idx.html
Author: Mike Mills
Issue: Merger
Description: On Thursday, Virginia Attorney General Mark Early asked federal
regulators to carefully review whether the MCI-Worldcom merger would hinder
competition on the Internet. "We think these companies are good companies,
and their presence in Virginia is very positive," Attorney General Early
said. But he added: "Virginia has a very unique interest in making sure the
Internet...remains competitive." (The state hosts many Internet-related jobs
and much of the early work on the Internet was done in Northern VA.)
Critics of the merger say that the combination of the two companies would
carry as much as "60
percent of the transmissions on the Internet's trunk lines, raising a
possibility of restraint of trade." Both MCI and Worldcom claim that the
actual figure would be much lower.

Title: MCI Accuses GTE Of 'Orchestrating' Opposition To WorldCom Deal
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers, Sneakiness & Jealousy
Description: GTE is "orchestrating" much of the opposition to the
MCI-WorldCom merger, MCI said. An MCI spokesman said GTE, which was outbid
by WorldCom for MCI, is acting like a "disappointed suitor." GTE said MCI is
looking for a "scapegoat" as the merger faces "serious trouble" with
antitrust regulators.

Title: IXCS In Texas Urge $750M Cut In SBC Access Charges As LD Entry Condition
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Interexchange carriers in Texas jointly advised the Texas PUC
that the intrastate access charges of Southwestern Bell Telephone need to be
cut by as much as $750 million before the telco can be allowed into the
interLATA long distance market. The IXCs, including national carriers AT&T
and MCI, said Southwestern's access charges need to come down to what they
contend is a cost-based level. Otherwise, they argue that the telco will be
able to sustain anticompetitive and discriminatory long distance pricing
structures. AT&T and MCI said the 12 cent a minute access charge level in
Texas is 24 times the half cent per minute cost they claim access service
actually costs Southwestern Bell to provide.

Title: Joint Board Wants Crack At Jurisdictional High-Cost Support Issues
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The state members of the Federal-State Joint Board on Universal
Service have asked the FCC to refer five major issues relating to
jurisdictional high-cost universal service support for the board's
consideration. These issues include 1) what role the FCC should play in
making intrastate high-cost support systems explicit, 2) how to split
responsibility for recovery of joint and common costs, 3) whether FCC
high-cost support should stay limited to 25% of the need, 4) whether federal
universal service funds should be applied to reduce carrier access charges,
and 5) what is the most appropriate method for apportioning and distributing
high cost funds among the states.

Title: CellularVision's Hopes for Wireless Service Fall Flat
Source: Wall Street Journal (B4)
http://wsj.com/
Author: Barbara Martinez
Issue: Wireless/Corporate
Description: For years, CellularVision USA CEO Shant Hovnanian assured
investors that a federal auction of licenses to offer a wireless service
called LMDS would make CellularVision's own LMDS license covering NYC
skyrocket in value. Now that the auction is here, bidding has been lukewarm.
That has cast doubt on the value of CellularVision's principal asset. And it
raises questions about the company's long-term prospects, given its poor
track record in landing customers and improving its financial performance.
Suddenly CellularVision's once-coveted license doesn't seem to be worth as
much as it once was. It is cutting jobs, struggling to raise capital, it's
stock price is dropping, and a high-ranking exec quit recently.

** Internet **

Title: Netscape to Expand Internet Service, Boosting Its Rivalry With Other
Firms
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Kara Swisher & Nick Wingfield
Issue: Online Services/Competition
Description: Netscape is planning to expand its online service into a major
Internet gateway, a move that could require it to both compete and cooperate
with other Internet companies. The move to shift it's recently launched
Netcenter site to a broader "portal" site -- a combination of content,
communications and community features plus Internet navigation tools -- will
bring Netscape into more direct competition with many major Internet
players, including Yahoo!, Excite, AOL, and a similar site that will soon be
launched by Microsoft called Start. But how Netscape configures such a site
might also include a single partnership or series of partnerships with some
of those same competitors.

Title: Sendmail Software's Author Is Starting Firm to Develop and
Distribute Program
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Don Clark
Issue: E-mail
Description: A technical pillar of the Internet is going commercial in a
move that could shape the evolution of e-mail. The author of an 18-year old
program called Sendmail, which routes computer messages around the global
collection of computer networks, is forming a company that will take over
development and distribution of the software. Sendmail plans to keep
distributing and updating a free version of the program, while selling
commercial variants along with technical support for companies and Internet
services. Sendmail exemplifies the 'Net's altruistic, anarchistic
traditions, and how entrepreneurs are finding new ways to exploit them. The
software was created by programmer Eric Allman along with versions of the
Unix operating system that researchers at the Univ. of California at
Berkeley helped popularize in the late 1970s.

** Lifestyles **

Title: Aiming for Business This Time, Gates Plans 2d Book
Source: New York Times (C4)
http://www.nytimes.com/library/tech/98/03/biztech/articles/13microsoft.html
Author: John Markoff
Issue: Microsoft/Lifestyle
Description: In an effort to highlight his talents as technologist and
improve his government tarnished image, Bill Gates, chairman of the
Microsoft Corp., plans to write a new book. The new book to be aimed at
Microsoft's millions of customers will reportedly portray Gates as "an
innovator who built a company that changed the way the world does business."
Paul Saffo, a technology consultant at the Institute for the Future, in
Menlo Park, CA, said about the book: "There is something touchingly quaint
about the fact that the guy who made his fortune in digital technology feels
that the only way he can explain himself is in print." [As if don't have
ENOUGH to read about Microsoft already...]
*********