Benton RSS Feed

Telephony
WSJ: MCI Cancels Plan to Resell Local Service
TelecomAM: MCI Throws the Towel in on Local Service Resale
TelecomAM: Bell Atlantic Says It's Not Surprised By MCI Announcement
WSJ: Bells Win Ruling By Court Curbing FCC's Regulation
TelecomAM: LCI Proposes Splitting Bells Into Wholesale, Retail Companies
FCC: Section 271 Review: The Challenge of Charlie Brown
FCC: Presentation on Status of Local Telephone Competition

Infrastructure
WSJ: Bells' Latest Effort to Offer Fast Access To the Internet
Shows More Promise
NTIA: Telecommunications and Information Infrastructure
Assistance Program
NYT: Private Group Warns of U.S. Internet Registry Plans

Microsoft
WSJ: Microsoft and Justice End a Skirmish, Yet War Could Escalate
WP: Microsoft to Allow Browser Blocking
NYT: Microsoft Bows to U.S. Order on Browser
WSJ: Netscape to Share Browser Program Code
NYT: Analysis: A Concession and a Push in Browser War
WP: Netscape Offers Web Browser for Free

Lifestyles
NYT: Seats With Computers Add New Dimension to Games

** Telephony **

Title: MCI Cancels Plan to Resell Local Service
Source: Wall Street Journal (A10a)
http://wsj.com/
Author: Shawn Young
Issue: Competition
Description: MCI announced it would abandon its effort to resell the Baby
Bells' local phone service under its own name. MCI said that the high
prices the regional Bells charge resellers in an effort to ward off
competition makes resale an impossible strategy. "The more you sell, the
more you lose," said Timothy Price, MCI's president. [See also TelecomAM
"MCI Throws the Towel in on Local Service Resale"
http://www.telecommunications.com/am/]

Title: Bell Atlantic Says It's Not Surprised By MCI Announcement
Source: Telecom AM---jan. 23, 1998
http://www.telecommunications.com/am/
Issue: Competition
Description: MCI's decision to stop offering local service by resale "comes
as no surprise," Bell Atlantic officials said. Senior VP of Gov't. Relations
Thomas Tauke quoted bank robber Willie Sutton, saying MCI has decided to
focus on building facilities for business service "because that's where the
money is." Until states end the "social contract" of subsidizing low
residential rates with high business rates, Tauke said, residential
competition never will develop.

Title: Bells Win Ruling By Court Curbing FCC's Regulation
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Competition
Description: The Baby Bells won another federal court victory that could
further delay competition in local telephone markets. The U.S. Court of
Appeals in St. Louis ordered the FCC to uphold an earlier court ruling that
stripped the federal agency of some of its power to set prices and rules on
how rivals of the Bells can enter local phone markets. The three-judge
panel's strongly worded order came a day before the U.S. Supreme Court's
decision today on whether it will hear an appeal of rulings made last year
by the Eighth Circuit. In those rulings, the Eighth Circuit has maintained
that states, not the FCC, have authority over the prices Baby Bells can
charge rivals for hooking up to their networks.

Title: LCI Proposes Splitting Bells Into Wholesale, Retail Companies
Source: Telecom AM---jan. 23, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: LCI International proposed that Bell companies be allowed 'fast
track' entry into long distance if they separate their network operations
from their service operations. In a petition filed with the FCC, LCI said
incumbents have conflicting interests because they own the networks all
carriers must use and also serve as competitors on those networks. Bell
companies that agree to separate those interests into two companies no
longer would have an unfair competitive advantage requiring a long distance
ban, LCI said. It promised to offer bundled and long distance service
immediately in competition with any Bell company implementing its plan.

Title: Section 271 Review: The Challenge of Charlie Brown
Source: FCC
http://www.fcc.gov/Speeches/Powell/spmkp801.html
Author: Commissioner Michael Powell
Issue: Competition
Description: Remarks by Commissioner Michael K. Powell Before the United
States Telephone Association, Washington, D.C. "While my remarks focus on
the challenges posed for regulation of the Bell Operating Companies, I
recognize that what the FCC and other regulators learn in the context of
section 271 may ultimately affect how we view incumbents telephone companies
more generally. More importantly, I firmly believe that some of the most
innovative moves to spur competition and provide value to consumers are
being made, not by the BOCs, but by some of the smaller incumbents
represented here today. I encourage all of you to keep my office and the
rest of the Commission informed of your activities and how these activities
can provide useful models or insights for the section 271 process -- we are
all in this together."

Title: Presentation on Status of Local Telephone Competition
Source: FCC
http://www.fcc.gov/Bureaus/Miscellaneous/Public_Notices/1998/pnmc8004.html
Issue: Competition
Description: The Federal Communications Commission will conduct an en banc
presentation on the status of local telephone competition as part of the
Commission's open agenda meeting on Thursday, January 29, 1998. This special
presentation by trade association and local exchange carrier officials will
commence at approximately 10:45 a.m. in the FCC meeting room, Room 856.
Copies of presentation material will be available on the Commission's Web
site at http://www.fcc.gov/enbanc/.

** Infrastructure **

Title: Bells' Latest Effort to Offer Fast Access To the Internet Shows More
Promise
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Infrastructure
Description: The Baby Bells are promising easy, super-fast access to the
Internet again. But this time the Bells and GTE are teaming up with heavy
hitters in the computer industry to tout ADSL, or asymmetrical digital
subscriber line, which promises to let consumers zip along the information
superhighway and download data at speeds of 1.5 million bits per second.
Trouble is, the Bells don't have a stellar track record selling such
services. Consumers have complained of long waits for delivery, high prices
and service problems. The Bells may get it right this time, though. The
stakes are higher, thanks to the cable companies' rapid entry into the
high-speed access business. And the version of ADSL favored by the computer
industry is relatively easy for the Bells to deploy: it works over ordinary
copper wires, and technicians don't have to install special lines at the
customer's home.

Title: Telecommunications and Information Infrastructure Assistance Program
Source: NTIA
http://www.ntia.doc.gov/ntiahome/press/98tiiap1.htm
Issue: Infrastructure
Description: NTIA has announced the 1998 round of the Telecommunications and
Information Infrastructure Assistance Program (TIIAP)
http://www.ntia.doc.gov/otiahome/tiiap/index.html. For fiscal year 1998,
approximately $17 million in grant funds will be awarded. The deadline for
submitting applications is March 12, 1998. On January 15, NTIA will hold a
short public briefing to introduce the 1998 TIIAP competition. NTIA will
also hold a series of regional "Outreach Workshops and Partnering Events"
http://www.ntia.doc.gov/otiahome/tiiap/Application/outreach2.html.

Title: Private Group Warns of U.S. Internet Registry Plans
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/012398domain.html
Author: Jeri Clausing
Issue: Internet Domain
Description: Members of a private group trying to add new domains to the
Internet said at a news conference yesterday that the government's decision
to delay the group's plan is creating chaos on the Internet and threatens to
derail competition. The group, which has insisted in the past that it will
add the new domains
with or without the government's approval, conceded that they will have to
put their plan on hold if Ira C. Magaziner, Clinton's Internet Czar,
finalizes the recommendation he has been discussing this week. The plan
Magaziner has verbally floated would allow only "one of the seven new
top-level domains to be added immediately and would extend Network Solutions
exclusive rights over the coveted ".com," ".net," and ".org" domains until a
private body can be put in place to control all the Internet domains and
addresses." Magaziner's plan is expected to be released any day. "Whatever
he does, if he interjects himself by making micromanagement decisions, he
has now preserved the monopoly because the process the U.S. government will
have to go through is so long it will last two and half years," said Don
Heath, president of Internet Society. Any delay will leave 88 companies,
that paid $10,000 each to become registrars of the seven new domains, in
limbo. "What we will see is NSI using its monopoly to crush companies like
my own," said Ivan Pope of the British company NetNames, a member of the
Council of Registrars. "They will delay this as long as possible."

** Microsoft **

Title: Microsoft and Justice End a Skirmish, Yet War Could Escalate
Source: Wall Street Journal (A1)
http://wsj.com/
Author: David Bank & John R. Wilke
Issue: Antitrust
Description: Microsoft settled a legal skirmish with the U.S. Dept. of
Justice, but its hardball tactics have set the stage for what may be a wider
and costly war. The company accepted terms to avoid a contempt-of-court
citation sought by the Justice Dept. for allegedly violating a court order.
Microsoft will do what the agency has sought: to give the nation's
personnel-computer makers the right to ship the current version of its
best-selling Windows 95 operating system on their machines without also
being forced to display Microsoft's software for browsing the Internet. But,
because of Microsoft's arrogant posture in its effort to defer compliance,
the Justice Dept. is now building a new antitrust case that could affect the
software giant's planned introduction of Windows 98 later this year. Lawyers
familiar with the case say the case would attack the heart of Microsoft's
strategy of using Windows to muscle into new markets.

Title: Microsoft to Allow Browser Blocking
Source: Washington Post (G1,G4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/23/162l-012398-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: The Microsoft Corp. agreed yesterday to allow personal computer
makers to block access to the company's Internet browser when installing
Microsoft's latest version of its Windows 95 operating system. The company's
decision to offer this significant concession to the Justice Department will
prevent the software giant from being held in contempt of court. "This is a
very important victory for consumers and innovators," said Assistant
Attorney General Joel I. Klein. He said that the settlement shows technology
companies "that their products can compete on their own merits and not be
snuffed out by Microsoft's use of monopoly power." Legal experts say that
this agreement will most likely remain in effect until Windows 95 is
replaced by a new product. The settlement was reached after intense
discussions Wednesday night.

Title: Microsoft Bows to U.S. Order on Browser
Source: New York Times (A1,C5)
http://www.nytimes.com/library/cyber/week/012398microsoft.html
Author: Joel Brinkley
Issue: Antitrust
Description: In order to avoid being held in contempt of court, the
Microsoft Corp. has agreed to do just what it said it could not - to sell
its latest version of its Windows 95 operating system to computer
manufacturers with their Internet browser hidden or partially removed.
However, the agreement only settles part of the government's antitrust case
against the software company. The larger issues are now before an appeals
court, where the hearing is scheduled for April 21.

Title: Netscape to Share Browser Program Code
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Don Clark
Issue: Online Services
Description: Netscape, hoping to one-up Microsoft, said it will give away
its flagship World Wide Web software along with a programming code that will
let other companies enhance it. By posting this "source code," Netscape is
betting that it can encourage third-party software companies to create
improvements on its products, which will be submitted back to Netscape and
included in future versions of the product line. "It's a brilliant move,"
said Bruce Smith, an analyst at Merill Lynch & Co. "By giving away their
source code, they can enlist an army of unpaid developers to work on their
side."

Title: Analysis: A Concession and a Push in Browser War
Source: New York Times (C1,C5)
http://www.nytimes.com/library/cyber/week/012398microsoft-side.html
Author: Steve Lohr
Issue: Internet
Description: Netscape announced yesterday that they will begin distributing
their browser products for free. This tactic is the same one used by
Microsoft since 1995 in an effort to catch up with Netscape in the browser
market. But even more surprising is that Netscape plans to freely license
the basic computer code for its browser products which allow users to tailor
the Netscape technology for their own use. By freely licensing its source
code, Netscape hopes to draw software developers around its technology
standard and then push that standard forward. "This is a very powerful play
by Netscape," said James F. Moor, president of Geopartners Research Inc., a
consulting company in Cambridge, MA. "The company is going back to its
roots. Netscape grew so rapidly because it first created a community and
that community became a force."

Title: Netscape Offers Web Browser for Free
Source: Washington Post (G3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/23/165l-012398-idx.html
Author: Elizabeth Corcoran
Issue: Internet
Description: Netscape Communications Corp. said yesterday that it will begin
to give away its Navigator software for browsing on the Web. The company
also plans to let other software developers contribute features for future
products. "Our business has evolved beyond the browser," said Netscape chief
executive, James Barksdale. Netscape is increasing its efforts to build
software for corporations and promote its Web site as a place where
companies can advertise and consumers can purchase software. "It's not a
surprise, and from a [software] and content developer's perspective we're
happy to see equal competition" between Netscape and its chief rival,
Microsoft, said Jerry Yang, co-founder of Yahoo Inc.

** Lifestyles **

Title: Seats With Computers Add New Dimension to Games
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/012398super-side.html
Author: Matt Richtel
Issue: Lifestyles!
Description: "Stadiums may soon feature a new technology called ChoiceSeat,
which puts computer/television monitors on the arms of individual seats. The
touch-screen computers, which are being tested at Qualcomm Stadium during
the Super Bowl on Sunday, not only will provide live game coverage, instant
replays and updated game statistics, but they also will sell merchandize and
take food orders. 'Not only can you order souvenirs, you can order a beer,'
said Larry Kopald, chief creative officer for Think New ideas, a Los Angeles
advertising firm that has worked with ChoiceSeat. 'You'll be able to have
the concession delivered right to your seat!'" ChoiceSeat plans to
capitalize on the increasing use of computers to market directly to sports
fans and the newfound affordability of bandwidth and computer technology.
Now in one stop, fans can tap into technology, attend the game and remain a
couch potato. [But does it do Windows?]
*********
And we are outta here. Have a great weekend -- see you Monday. (You knew we
had to get one SuperBowl story in)

Digital TV
WSJ: Mitsubishi's U.S. Unit Bets Big on Digital TV
FCC: NATPE Conference

Telephony
NYT: Bill Would Restrict Subsidy
NTIA: Section 271 of the Communications Act and
the Promotion of Local Exchange Competition
TelecomAM: Washington Gives U S West $58.8M Rate Hike;
Partially Offsets Recent Cut

Internet/Online Services
NYT: New Fiber Network to Be Based On Net Technology
WP: Phone Firms Race To Speed Web Access
WSJ: Sprinting Behind Cable in Race to Offer Fast Data Access, Bells
Back
New Way
WSJ: Intel's Quick Web Technology Aims To Cut Down on 'World Wide Wait'
WSJ: AOL Says Subscibers Number 11 Million
NYT: New Israelis Get Computers to Aid Assimilation
NYT: Email Trial May Set U.S. Precedent

Microsoft
WSJ: Microsoft Asks Court To Overturn Ruling On Internet Expert
WSJ: Microsoft to Streamline Operations at 'Sidewalk'

** Digital TV **

Title: Mitsubishi's U.S. Unit Bets Big on Digital TV
Source: Wall Street Journal (Jan. 19, B12)
http://wsj.com/
Author: Evan Ramstad
Issue: Digital TV
Description: Mitsubishi will stop selling tube-based TV sets in the U.S.
later this year to concentrate on projection, digital and flat-panel units.
In doing so, Mitsubishi will become the first major manufacturer to devote
all of its resources to advanced sets and abandon the screen technology that
has been the standard. The company said its decision was influenced by the
declining profitability of so-called direct-view TVs with diagonal screen
sizes of less than 36 inches, as well as a desire to stake out a leading
role in digital TV.

Title: NATPE Conference
Source: FCC
http://www.fcc.gov/Speeches/Kennard/spwek802.html
Author: FCC Chairman Kennard
Issue: Digital Television
Description: Chairman Kennard's remarks at the 35th Annual National
Association of Television Program Executives (NATPE) Conference. "When the
history of communication in this decade is written, it will be a story of
how communications technologies -- all technologies -- telephones, cable TV,
cellular and broadcasting -- converted to digital technology. This is truly
a transforming event of our times. And people will exhibit all of the
reactions which typically accompany transforming events: confusion,
optimism, pessimism, denial, fear. And some people in [the broadcast]
industry will embrace this change. And they will be the pioneers. The point
to remember here is that you [broadcasters] are not alone. Every
communications technology is undergoing this transition. Different from
yours in many ways, to be sure. But all equally imperative. Because digital
technology allows us to do things unimaginable a few years back. Consumers
are waking up to that fact. Digital TV offers versatility and capacity that
will transform your medium. This is many magnitudes more significant than
the transition from black and white to color, because it has the power to
much more fundamentally change what you can offer to your audience."

** Telephony **

Title: Bill Would Restrict Subsidy
Source: New York/CyberTimes
http://www.nytimes.com/library/cyber/week/012198education.html
Author: Associated Press
Issue: Universal Service
Description: Senator John McCain (R-AZ), Senate Commerce Committee chairman
and an ardent critic of the Federal Communications Commission's Internet
subsidy program, said yesterday that he plans to introduce a bill that would
require schools using federal money to hook up to the Internet to restrict
student access to smutty material. McCain did not provide details on how the
student-access restriction would work. The subsidies provide schools,
libraries and rural health care specialists with discounted hookups to the
Internet. Under pressure from Republicans in Congress and telephone
companies this past December, the Federal Communications Commission agreed
to slow the phasing-in of the program. The Commerce
Committee, which has jurisdiction over the F.C.C., will hold a hearing on
indecency and pornography on the Internet on February 10. For more
information on Universal Service check out:
http://www.benton.org/Policy/Uniserv/.

Title: Section 271 of the Communications Act and
the Promotion of Local Exchange Competition
Source: NTIA
http://www.ntia.doc.gov/ntiahome/staffpapers/section271/index.html
Author: Tim Sloan, Senior Policy Analyst
Issue: Competition/Telecommunications Act of 1996
Description: "Because many parts of section 271 are neither unambiguous nor
self-executing, they have sparked much debate and disagreement among
interested parties. This paper offers an interpretation of section 271 that
is reasonable, is consistent with the language and intent of the 1996 Act,
and that furthers the overriding goal of that statute -- to promote
competition in all telecommunications markets, particularly the market for
local exchange services."

Title: Washington Gives U S West $58.8M Rate Hike; Partially Offsets Recent Cut
Source: Telecom AM---jan. 21, 1998
http://www.telecommunications.com/am/
Issue: Telephone Regulation
Description: The Washington Utilities and Transportation Commission has
granted U S West $58.8 million of the $69.4 million rate increases sought by
the telco, significantly offsetting the impact of a $91.5 million rate cut
upheld in December by the state Supreme Court. The two rate orders will be
implemented Feb. 1, producing a net $32.7 million revenue increase.

** Internet **

Title: New Fiber Network to Be Based On Net Technology
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/012198telephone.html
Author: Seth Schiesel
Issue: Infrastructure
Description: Peter Kiewit Sons Inc. announced that it plans to spend up to
$3 billion over the next three years to build a 20,000-mile web of fiber
optic cable. This system would be the first national fiber optic network
based on Internet technology as opposed to the more common telephone
technology. If Kiewit's plan works, it could allow the company to charge
consumers for voice and data communications at prices much lower than those
of competitors while still allowing Kiewit to maintain healthy profit
margins. Peter Kiewit Sons plans to sell access to mostly small and medium
business customers.

Title: Phone Firms Race To Speed Web Access
Source: Washington Post (C11,C16)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/21/042l-012198-idx.html
Author: Mike Mills
Issue: Infrastructure
Description: The GTE Corporation and the regional Bells are getting ready to
announce an agreement with Microsoft, Intel and other computer industry
giants on standards for a new type of modem and phone company service that,
according to analysts, could bring mass-marketed, high-speed Internet access
to every home and business. These new standards will make modems much more
affordable while also easing the construction costs that have made this
technology unprofitable for phone companies in the past. "We're really at
the beginning of an era of competition in consumer Internet access," said
Frank Gens, an analyst for International Data Corp. in Farmingham, MA. "It's
still off in the distance, but you can really start to see the death of the
bandwidth crisis." Sources say that the agreement will include telephone
companies and more than two dozen hardware and software makers.

Title: Sprinting Behind Cable in Race to Offer Fast Data Access, Bells Back
New Way
Source: Wall Street Journal (B6)
http://wsj.com/
Author: Dean Takahashi & Stephanie N. Mehta
Issue: Infrastructure
Description: The five Baby Bells, trying to catch up with the cable-TV
industry's foray into high-speed data access for the nation's homes, are
rallying around a standard for a rival technology backed by the computer
industry's Big Three -- Microsoft, Intel, and Compaq. The computer giants
are expected to announce widespread support for a high-speed digital PC
modem that works over ordinary copper phone wires. The consortium's aim is
to jump-start the modems' deployment by lowering their costs and making them
easier to use.

Title: Intel's Quick Web Technology Aims To Cut Down on 'World Wide Wait'
Source: Wall Street Journal (Jan. 19, B12)
http://wsj.com/
Author: Lisa Bransten
Issue: Internet
Description: Intel has developed a technology that it says can speed up
surfing for millions of Internet users, but speed demons will have to pay
extra for the service. The chip maker will unveil what it calls Quick Web
Technology, which allows ISPs to speed up their customers' access to Web
pages containing graphics. The technology compresses some of the information
from graphics so that there's less data to transmit. The result is
lower-quality graphics, but served at a higher speed. The technology also
offers Internet services a way to "cache" or store copies of Web pages
downloaded by their users. Erols Internet Inc. and Netcom On-Line have
already agreed to offer the product.

Title: AOL Says Subscibers Number 11 Million
Source: Wall Street Journal (B8)
http://wsj.com/
Issue: Online Services
Description: AOL said it now has 11 million subscribers, extending its lead
over online rivals. The announcement is a sign that AOL has restored much
of its marketing effort that was scaled back a year ago when the company
introduced flat-rate pricing that resulted in heavy usage and busy signals.
The company was subsequently forced to slow its subscriber growth when
numerous state attorneys raised objections that AOL was offering a service
it couldn't deliver.

Title: New Israelis Get Computers to Aid Assimilation
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/012198israel.html
Author: Matt Richtel
Issue: International
Description: Israel is using technology to absorb and assimilate hundreds of
thousands of Jewish refugees and Zionists. The idea is to use technology to
ease arrivals into the new Jewish melting pot while also helping to prepare
immigrants to compete in a high-tech economy. For example, most recently the
city of Kiryat Ekron has given 105 families new computers in a concerted
effort to educate its new additions about computers and technology. Dr.
Emmanuael Grupper, director of the Residential Education and Care Division
for Israel's Ministry of Education, said that immigrants have been "very
eager to learn" and that they "understand study is the key to success."
Other groups have started Internet chat sites so refugee teenagers can share
feelings and fears about their new surroundings. "It's very hard to come
here and be thrust into society," said Sarale Cohen, a retired developmental
psychologist from the Univ. of Calif. at Los Angeles who helped create a
chat site called Teen-to-Teen for recent immigrants. "We want to help
integrate them into Israeli society - give them a place to express their
concerns, their joys and then share with each other."

Title: Email Trial May Set U.S. Precedent
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/012198hate.html
Author: Rebecca Fairley Raney
Issue: Internet Crime
Description: Jurors for the second trial of Richard Machado, a 20-year-old
who sent an angry email to 59 Univ. of Calif. at Irvine students with
Asian-sounding names, will be addressing the question: "What kind of
behavior is appropriate -- and legal -- on the Internet?" The trial, which
starts next week in Santa Barbara, is the nation's first Federal prosecution
case of an alleged hate crime on the Internet. "We need to decide what it
takes to successfully prosecute a case like that," said Assistant U.S.
Attorney Michael J. Gennaco, co-prosecutor on the case and a specialist in
civil right cases. "There's always a gray area between distasteful messages
and threats. There's a line to be drawn from what we can successfully
prosecute. The lessons learned from this case will guide our office." The
first trial in November ended in a deadlock when jurors could not decide
whether Machado intended his email as a prank or as a serious threat.

** Microsoft **

Title: Microsoft Asks Court To Overturn Ruling On Internet Expert
Source: Wall Street Journal (Jan. 19, B12)
http://wsj.com/
Issue: Antitrust
Description: Microsoft asked an appeals court to overturn the appointment of
the special master, Professor Lawrence Lessig, who is overseeing the
company's legal battle with the Justice Dept. The company charged Mr. Lessig
with bias, citing an e-mail message Mr. Lessig wrote to a lawyer at
Netscape. In a strongly worded response, the judge dismissed Microsoft's
claims as "trivial" and found they weren't made in good faith. "Had they
been in a more formal matter, they might well have incurred sanctions,"
Judge Jackson wrote.

Title: Microsoft to Streamline Operations at 'Sidewalk'
Source: Wall Street Journal (B8)
http://wsj.com/
Issue: Online Services
Description: Microsoft is laying off staff and streamlining operations at 10
Web sites that offer local activity and entertainment guides for U.S.
cities, the latest in a series of moves to cut losses in its on-line
ventures. But the software company said it will continue to expand the
service, hoping to reach 50 cities by the end of 1998 while maintaining a
smaller staff in each location.
*********

There will be no Headlines Monday, January 19 in observance of Dr. Martin
Luther King Day.

Digital TV
NTIA: President's Advisory Committee Meeting

Universal Service
Congressional Report on Universal Service Subsidies

Antitrust
WSJ: Judge Jackson's Cyberlesson

On-Line Advertising
WSJ: Intel Proposal Is Angering Web Publishers

Privacy
NYT: Sailor Who Became a Symbol Wins Delay

Telephony
TelecomAM: Powell Calls For New Approach To Long Distance Applications
TelecomAM: Long Distance Entry Will Cost Consumers $10 Billion, CFA Says
TeleccoAM: Appeals Court Seems More Sympathetic To FCC In Early Arguments

Politics
WP: OMB Official Joins Economic Council

Television
The Future of Television: PIAC Update

Computer Technology
WP: Computer Question? Chip In!
WSJ: SEC Plans Guidance To Help Web Sites On Securities Offers
WP: Dec. 31 Holiday Urged For Year 2000 Problem

Lifestyle
NYT: Creating Made Easy With a "Collaborator"

** Digital TV **

Title: President's Advisory Committee Meeting
Source: NTIA
http://www.real.com/corporate/digitaltv/
Issue: Digital TV
Description: On January 16th, RealNetworks will broadcast live audio
coverage of the meeting of the Advisory Committee on Public Interest
Obligations of Digital Television Broadcasters. President Clinton appointed
the Committee to study and recommend which public interest obligations
should accompany broadcasters' receipt of digital television licenses. The
Committee will discuss digital broadcasting, educational programming, closed
captioning, and natural disaster information systems.

** Universal Service **

Title: Congressional Report on Universal Service Subsidies
Issue: Universal Service
Description: Among the Universal Service Fund mandates, the
Telecommunications Act of 1996 directs the Federal Communications Commission
(FCC) to include support for elementary and secondary schools, public
libraries, and nonprofit rural health care providers in the area of
telecommunications. In a report released by the Congressional Budget Office
(CBO), titled "Federal Subsidies of Advanced Telecommunications for Schools,
Libraries, and Health Care Providers," they conclude that resulting
subsidies will increase federal revenues and outlays by $560 million in FY
1998 and $1.2 billion in FY 1999. The CBO believes that the revenues needed
to support those activities will be collected, leaving the Universal Service
Fund deficit neutral, and they do not foresee the $2.25 billion cap on
school and library subsidies being reached until 2007. The report is
available from the CBO web page at: http://www.cbo.gov

** Antitrust **

Title: Judge Jackson's Cyberlesson
Source: Wall Street Journal (Op-eds, A14)
http://wsj.com/
Issue: Antitrust
Description: Judge Thomas Penfield Jackson is in the early stages of the
world's most expensive introduction to cyberworld. Presiding over the
antitrust suit against Microsoft, he demonstrated his progress the other day
by personally removing the Microsoft Explorer from a Windows desktop. He
also just denied Microsoft's challenge to his special master for the case,
Internet lawyer Lawrence Lessig. Perhaps he should be disqualified;
especially considering that Mr. Gates's platoon of lawyers found an e-mail
to Netscape in which Professor Lessig confided that installing the Microsoft
browser was something like "selling his soul." That didn't bother the judge,
who didn't think it meant Professor Lessig thought of Microsoft as the
devil. What it does mean is that Mr. Lessig shares the animosity toward
Microsoft endemic on the Internet. This bias against Microsoft by its most
savvy customers is an interesting phenomenon. Mostly, though, what the
cybergeeks resent is Mr. Gates's demonstration that marketing trumps
technology.

** On-Line Advertising **

Title: Intel Proposal Is Angering Web Publishers
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Thomas E. Weber
Issue: On-line Advertising
Description: Intel has persuaded major Web sites, including those of CNN and
computer publisher Ziff-Davis, to add features that slow down all but the
newest and most expensive machines with the latest Intel chips. The sites
are being asked to run a notice explaining, "Content on this page benefits
from the performance of the Intel Pentium II processor." In other words, if
that Web page seems too slow, it's time to buy a new Intel-based personal
computer. Intel is backing up the unusual request with a promise to pay
bigger subsidies to advertisers who place "Intel Inside" ads on these sites.
The program, dubbed "Optimized Content," is roiling some big Web publishers,
who are outraged at the notion of making their sites less friendly to the
vast majority of their readers. Kelly Conlin, president of International
Data Group, said, "This is unusual and untenable...there is a line that we
cannot and will not cross in regard to respecting the interests of our readers."

** Privacy **

Title: Sailor Who Became a Symbol Wins Delay
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/011698navy.html
Author: Lisa Napoli
Issue: Privacy
Description: The submarine crew chief, Timothy R. McVeigh, stands today as a
symbol for electronic privacy and gay rights advocates alike. Yesterday, in
the first case of its kind, Senior Chief Petty Officer McVeigh filed a suit
against the Pentagon, accusing the government of violating the Electronic
Privacy Communications Act by illegally requesting and receiving information
about him from the online server, AOL. The information the government
received has cost McVeigh his job and was about to get him dismissed from
the Navy after more 17 years of service. After the lawsuit was filed, the
government agreed to delay McVeigh's discharge, giving him an additional
six-day reprive and a chance for his claims to be considered.

** Telephony **

Title:
Source: Telecom AM---jan. 16, 1998
http://www.telecommunications.com/am/
Issue: Telephony
Description: As it heard over two hours of argument on the FCC's access
charge, the Eighth U.S. Court of Appeals seemed to go easier on the FCC than
it did in last year's interconnection case. Presiding Judge Pasco Bowman
repeatedly asked attorney's why the court should act when the challenged
issues tended to be transitional actions by the FCC. At one point, he
wondered if the FCC should "get deference from us on transitional measures."
The question arose during the Bell companies' argument that the FCC method
of moving from implicit to explicit subsidies denies local carriers full
cost recovery. They said competitive pressures will "erode" implicit
subsidies from rates before the Jan. 1999 implementation of explicit
subsidies. The FCC denied that argument, saying a year has elapsed without
the local carriers being hurt by competition.

Title: Powell Calls For New Approach To Long Distance Applications
Source: Telecom AM---jan. 15, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: FCC Commissioner Michael Powell called for a new "collaborative
approach" to Bell company long distance applications. Powell said that the
Commission "must partner" with state public utility commissions and the
Justice Dept., "respecting and, where appropriate, deferring to their
judgments." He said it is "imperative" that the FCC modify its current
approach and adopt a process that is designed to produce success rather than
failure. "What I am calling for is a process that will clearly place in the
hands of the [Bell companies] the seeds of their own success," Powell said.

Title: Long Distance Entry Will Cost Consumers $10 Billion, CFA Says
Source: Telecom AM---jan. 16, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Consumers could lose as much as $10 billion each year in
savings from lower local phone bills if the Bell companies are allowed into
the long distance market before local competition exists, according to a
Consumer Federation of America report. If the Bells enter the market before
competition exists the report said, local competition will be "undermined
because only the Baby Bells would be able to offer an attractive bundle of
local and long distance services."

** Politics **

Title: OMB Official Joins Economic Council
Source: Washington Post (A21)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/15/173l-011598-idx.html
Author: Stephen Barr and Cindy Skrzycki
Issue: Politics
Description: President Clinton announced yesterday that Sally Katzen,
attributed with bringing more openness to how federal regulations are made,
will leave her post at the Office of Management and Budget for a job in the
White House helping to shape economic policy. Katzen, a Washington lawyer
who joined the administration in 1993, served the longest of any of the
administrators at OMB's office of Information and Regulatory Affairs (OIRA).

** Television **

Title: The Future of Television: PIAC Update
Issue: Digital TV
Description: Over the next several months, President Clinton's Advisory
Committee on the Public Interest Obligations of Digital Television
Broadcasters (PIAC) will be deciding how television, which is arguably the
most powerful medium of the 20th century, can contribute to the 21st
century. PIAC has met twice since October and is meeting again today,
January 16. RealNetworks, Inc. will webcast the meeting over the Internet.
The proceedings can be accessed at at RealNetworks' homepage:
http://www.real.com or at PIAC's:
http://www.ntia.doc.gov/pubintadvcom/pubint.htm. The agenda for the
meeting includes a panel on the technology of digital broadcasting and the
implications for new programming services, briefings on closed captioning
and video description of broadcast programming and natural disaster
information systems, and a panel on educational programming in the digital era.

** Computer Technology **

Title: Computer Question? Chip In!
Source: Washington Post (G1,G4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/16/070l-011698-idx.html
Author: Beth Berselli
Issue: Technology Use
Description: For the many computer users who received software packages
during the holidays, be aware that if you can't figure it out on your own
you are likely to pay for advice. While most companies still handle calls
from users regarding software problems, many of the big names in the
industry, including Hewlett Packard, Microsoft, and International Business
Machines, require users to pay for advice once their warranty has expired.
In the past several years, it has become common for customers to pay $25 to
$35 for each inquiry or $2 to $3 a minute to a 900 number. The companies say
that the continued growing number of inquiry calls have made it impossible
for them to continue to support their products free of charge. However, Pete
Gladstein, who heads Apple Computer Inc.'s support services, and other
computer company executives point out that the majority of their customers
still receive free phone support, as most questions come up within the first
few months of ownership. They estimate that fewer than 10 percent of the
calls result in fees.

Title: SEC Plans Guidance To Help Web Sites On Securities Offers
Source: Wall Street Journal (B22)
http://wsj.com/
Issue: Internet Regulation
Description: The Securities and Exchange Commission is preparing guidance on
how creators of Web sites can avoid triggering U.S. laws governing the offer
or sale of securities. The guidance will apply chiefly to sites generated
abroad, as U.S.-based sites would automatically be governed by U.S.
securities laws, said Robert Colby, deputy director of the SEC's division of
market regulation. U.S. securities laws have strict conditions that
generally require anyone offering or selling securities in this country to
be registered here. Mr. Colby said, "We're trying to think through an
interpretation that would say what are reasonable steps we can recognize to
deflect requirements that they register here." The interpretation would
apply only to passive Web sites and not to e-mail, which would be regarded
as a more-direct offer, he added.

Title: Dec. 31 Holiday Urged For Year 2000 Problem
Source: Washington Post (G2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/16/091l-011698-idx.html
Author: Rajiv Chandrasekaran
Issue: Technology
Description: Irving Weiser, the chairman of the Securities Industry
Association's executive committee, proposed in a speech yesterday that U.S.
banks and stock markets shut their doors on December 31, 1999, to fix any
last minute problems that their computers may incur in transferring to the
year 2000. The association's request reflects growing concerns about the
year 2000 among financial industry executives and regulators.

** Lifestyle **

Title: Creating Made Easy With a "Collaborator"
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/nation/011698nation.html
Author: Jason Chervokas and Tom Watson
Issue: Lifestyle
Description: Sigfried Gold, a PhD. student at the Univ. of IL and an
organizer of the School for Designing a Society in Urbanna IL, is the
inventor of a piece of code called the Collaborator. Mr. Gold believes that
genius of the next century will be collaborative, and the great ideas, art
forms and stories will come from people working together instead of alone.
The Internet is one tool that will assist in bringing that collective genius
together. With the Collaborator, available on the Web in versions 2.0 and
3.0, Gold's writing colleagues and strangers around the world can get
together to write fiction and poetry. His collaborative engine attracts "a
wide variety of people, from serious writers to a mob of suicidal
teen-agers," Gold said. "For me, though, it's this issue -- the era of the
individual literary genius was over in the 1930s, and literary genius has
propelled itself through economic inertia since then." The works that result
from the Collaborator probably would not interest any large publishing
house, but they are "strangely engrossing" as writers from all different
walks of life come together to work on the same subject matter. The works
are quite non-linear in nature, reflecting what we see in contemporary media
where surfers point-and-click on the Web and TV, creating their own versions
of non-linear film. You can access the Collaborator at:
http://www.shout.net/~sigfried/
*********
...and we are out of here. See you Tuesday (as there will be no Headlines on
Monday in respect of Dr. MLK Day).

Cable
NYT: Cable TV Lacks Competition, F.C.C. Notes
WP: Cable TV Firms Still Face Little Competition, F.C.C. Says
FCC: Fourth Annual Report on Competition in Video Markets
WSJ: Cable Operators Could Face Tough New Rules
Telecom AM: FCC Says Competition Not Developing Between Telcos, Cable
Comm Daily: Kennard Says Action On Cable Rate Regulation Is Needed
Before 1999 Sunset

Antitrust
NYT: U.S. and Microsoft Argue in Court Whether Judge Is Being Defied
WP: Judge Criticizes Key Arguments by Microsoft Lawyer

Television
NYT: Monday Football Stays on ABC; NBC Out of Game After 33 Years
WP: ABC Keeps Mondays In Record NFL Deals
Comm Daily: Mass Media
NYT: Study Finds a Decline In TV Network Violence
Comm Daily: Violence In TV Programs Continues Decline -- UCLA
Comm Daily: Kennard Suggests FCC 'Trust But Verify' Some Station
Filings

Jobs
WSJ: Netscape Expected to Cut 400 Workers As Growth Slows, Microsoft
Toughens

Telephone
Telecom AM: Legal Analysis Says Bells Can't Enter Long Distance
Immediately
Telecom AM: BellSouth Brings Constitutionality Case To Federal
Appeals Court
Comm Daily: St. Louis Appeals Court To Hear Access Charge Arguments,
2 Other
Cases
Comm Daily: Telephony

Privacy
WSJ: Don't Chat, Don't Tell? Navy Case Tests Privacy Limit

Politics
WSJ: Sticking Up For Free Speech

** Cable **

Title: Cable TV Lacks Competition, F.C.C. Notes
Source: New York Times (D6)
http://www.nytimes.com/yr/mo/day/news/financial/fcc-cable.html
Author: Seth Schiesel
Issue: Competition
Description: The Federal Communications Commission released a report
yesterday confirming that the information revolution has failed to create
substantial competition in the standard cable industry and as a result
consumers are paying higher rates. "Less than 15 months away from the sunset
of most cable rate regulation, it is clear that broad-based, widespread
competition to the cable industry has not developed and is not imminent,"
William Kennard, chairman of the FCC, said in a statement. "The loser is the
American public. They must pay higher cable prices yet have fewer
competitive choices." The report said that cable TV rates have increased by
8.5 percent over the past year, bringing the average monthly bill up to $28.83.

Title: Cable TV Firms Still Face Little Competition, F.C.C. Says
Source: Washington Post (D11)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/14/051l-011498-idx.html
Author: Paul Farhi
Issue: Competition
Description: According to a government study released yesterday, despite
federal regulation, cable TV companies still face little direct competition.
The Federal Communications Commission said that cable companies hold 87
percent of the market for subscription-based television services, down only
2 percent from last year. The rate of decline is about the same as when
Congress enacted the Telecommunications Act of 1996 in an effort to spur
competition. Meanwhile, cable rates have increased over the past year by 8.5
percent, compared with the general inflation rate of 1.7 percent. The report
led top federal regulators to renew calls for updated regulations.

Title: Fourth Annual Report on Competition in Video Markets
Source: FCC
http://www.fcc.gov/Bureaus/Cable/Reports/fcc97423.html
Issue: Cable/Competition
Description: The Commission has adopted its fourth annual report to Congress
on the status of competition in the markets for the delivery of video
programming. As of June 1997, cable operators served 87 percent of
households that receive multichannel video programming, down two percent
from September of 1996. While this represents a decrease, it shows the cable
industry continues to occupy the dominant position in the multichannel video
marketplace. It remains difficult to predict the extent to which competition
will constrain cable systems' position as the dominant multichannel video
provider in the future. [see news release
http://www.fcc.gov/Bureaus/Cable/News_Releases/1998/nrcb8001.html]

Title: Cable Operators Could Face Tough New Rules
Source: Wall Street Journal (A4)
http://wsj.com/
Author: Bryan Gruley
Issue: Competition
Description: Federal regulators warned that tough new rules may be in store
for cable companies that operate in markets where they have little or no
competition. Members of the FCC have stopped short of advocating a freeze on
cable rates. But the three Democrats among the five commissioners vowed to
look hard at writing rules that could force cable operators to offer more
programming choices, and to shift some of the burden for higher programming
costs to advertisers from subscribers. FCC Chairman Kennard said the FCC
will re-examine limits on the number of customers one cable company can serve.

Title: FCC Says Competition Not Developing Between Telcos, Cable
Source: Telecom AM---jan. 14, 1998
http://www.telecommunications.com/am/
Issue: Competition
Description: Although the Telecom Act loosened restriction on phone
companies' entering the cable business, such entry has been "uneven", the
FCC said. In its annual report, it said local carriers have provided
facilities-based competition in multiple dwelling units, but not in
neighboring areas. The expected convergence that would "permit use of the
same facilities for provision of the two types of service" has not occurred,
the Commission said. It said the one area in which cable operators "appear
poised to compete head-to-head" with telcos is providing Internet access.

Title: Kennard Says Action On Cable Rate Regulation Is Needed Before 1999
Sunset
Source: Communications Daily---jan. 14, 1998
Issue: Competition
Description: The latest FCC cable competition report is "red flare that the
competition that Congress envisioned is not imminent," FCC Chairman Kennard
told reporters. He stopped short of saying that the current March 31, 1999,
sunset for cable rate regulation should be extended, but said the FCC should
restudy its rate regulations, move quickly on horizontal ownership rules,
and urge Congress to ease limits on DBS.

** Antitrust **

Title: U.S. and Microsoft Argue in Court Whether Judge Is Being Defied
Source: New York Times (D1,D6)
http://www.nytimes.com/library/cyber/week/011498microsoft.html
Author: Stephen Labaton
Issue: Antitrust
Description: At yesterday's hearing, the Federal Government and Microsoft
clashed over whether Microsoft had failed to comply with the judge's order
to stop forcing makers of personal computers to install their Internet
browser as a condition of accepting its Windows 95 operating system. The
Justice Department claims that Microsoft flouted the judges order by
offering computer makers a set of three illogical options in order to insure
that the Internet Explorer icon remained on Windows desktops.

Title: Judge Criticizes Key Arguments by Microsoft Lawyer
Source: Washington Post (D1,D12)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/14/049l-011498-idx.html
Author: Rajiv Chandrasekaran
Issue: Antitrust
Description: A federal judge examining whether Microsoft violated a court
order sharply criticized key legal arguments raised by the software
corporations attorney, Richard Urowsky. U.S. District Judge Thomas Penfield
Jackson "repeatedly challenged Microsoft's focus on wording used by the
Justice Dept. in legal briefs asking that the company be held in contempt of
court." Jackson also repeatedly told Urowsky that the discussion should be
confined to the judge's order requiring the company to offer a version of
its Windows 95 operating system without an Internet browser. "Irrespective
of what the government said...it is my language, and my language alone,
which is at issue here," Jackson said. Later, when Urowsky complained that
the Justice Dept.'s current solution for separating Windows and the browser
differs from their statements in earlier legal papers, Jackson, paraphrasing
Ralph Waldo Emerson, replied, "It's been said that consistency is the
hobgoblin of little minds."

** Television **

Title: Monday Football Stays on ABC; NBC Out of Game After 33 Years
Source: New York Times (A1,D30)
http://www.nytimes.com/library/sports/football/011498fbn-nfl-tv.html
Author: Richard Sandomir
Issue: Television Economics
Description: The final word in the most expensive sports television
negotiations ever, is that ABC will keep "Monday Night Football" for $4.4
billion over eight years and ESPN secured exclusive NFL cable rights by
paying $4.8 billion for the entire Sunday night package. The financial
commitments by ABC and ESPN, both subsidiaries of the Walt Disney Company,
removed NBC from professional football after 33 seasons and ended an
eight-year arrangement under which ESPN shared Sunday night games with TNT.
The announcement came one day after CBS bought the American Conference games
and Fox kept its NFC rights. These agreements have brought the league's fees
over the next eight years to $17.6 billion, "which would rise to $18 billion
with 3 percent escalator clauses in the last three seasons." In the
four-year deals that ended this season the league received a total of $4.38
billion.

Title: ABC Keeps Mondays In Record NFL Deals
Source: Washington Post (A1,A10)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/14/193l-011498-idx.html
Author: Leonard Shapiro and Paul Farhi
Issue: Television Economics
Description: Last night, the National Football League announced an
eight-year $17.6 billion television deal with ABC, allowing the network to
retain the rights to "Monday Night Football," over a strong bid by NBC, and
that ESPN will now handle the entire package of Sunday night cable games,
eliminating Turner Broadcasting from the mix. Both ABC and ESPN are owned by
the Walt Disney Company. Due to this decision, this fall will mark the first
time in 28 years that NBC will not be airing NFL games.

Title: Mass Media
Source: Communications Daily
Issue: Television Economics
Description: CBS aced out NBC in the bid for the Sunday NFL package (AFC
games), to begin in 1998, by agreeing to pay $4 billion over the next 8
years. NBC rejected the NFL's offer to renew its contract at $500 million
per year, 2-1/2 times the current license fee. Fox will continue to carry
NFC games for $4.4 billion, up 39 percent from the current year. CBS last
broadcast the NFL in 1993, when Fox won the package.

Title: Study Finds a Decline In TV Network Violence
Source: New York Times (B7)
http://www.nytimes.com/yr/mo/day/news/arts/tv-violence.html
Author: Lawrie Mifflin
Issue: Television
Description: The third and final report of a study that began three years
ago in response to public anxiety about violence on television, has found a
steady decline in violent subject matter in all but one area. The report,
released yesterday, said the one area that has not shown a decrease is
"reality specials." These "shockumentaries" carry titles like "When Animals
Attack" and "World's Scariest Police Shootouts." But overall the study,
conducted by the Center for Communication Policy at the University of
California at Los Angeles, found that only two prime-time series in the
1996-97 season raised "frequent concerns" about the irresponsible or
excessive use of violence. The study was commissioned by ABC, CBS, NBC and
Fox in June 1994 after some prodding by Senator Paul Simon (D-IL).

Title: Violence In TV Programs Continues Decline -- UCLA
Source: Communications Daily---jan. 14, 1998
Issue: Television
Description: The 4 big TV networks received good grades in the latest study
of TV violence, as only 2 of 107 regularly scheduled series raised "frequent
concerns" about violence while 6 series raised "occasional concerns" in th
96-97 season. Jeffrey Cole, dir. of UCLA's Center for Communication Policy,
said, "Overall, the trend is toward less violence on network television."
UCLA studied more than 3,000 hours of programming, plus on-air promotions
and commercials. It differs from other violence studies in that it doesn't
simply count violent incidents but also analyzes the context of that
violence -- whether it's appropriate, shows consequences of violence and
necessary to tell the story or develop characters. Cole said, "Many
television dramas depict violence responsibly and effectively by
demonstrating consequences, developing characters and furthering plot lines."

Title: Kennard Suggests FCC 'Trust But Verify'' Some Station Filings
Source: Communications Daily---jan. 14, 1998
Issue: Television/Radio
Description: FCC Chairman Kennard suggested a move to a "trust but verify"
system for handling minor modifications to stations. He called the effort to
streamline processing "very near and dear to my heart" and said the biennial
review required by Congress means more can be done because of congressional
support. The FCC could operate more like the IRS, which allows taxpayers to
certify income and tax filings, with only spot checks to verify compliance,
Kennard suggested: "We don't necessarily have to check every application.
Why should our engineers check everything?" He said change could result in
"drastic improvement" in the application process.

** Jobs **

Title: Netscape Expected to Cut 400 Workers As Growth Slows, Microsoft Toughens
Source: Wall Street Journal (B4)
http://wsj.com/
Author: Kara Swisher
Issue: Jobs
Description: Netscape is expected to lay off about 400 permanent and
contract workers, as the fast-growing Internet-software company adjusts to
slowing growth and rising competition from Microsoft. The layoffs brings to
a halt a major expansion over the past several years and is the first time
that it has shrunk its staff. But because of an intense attack by Microsoft
in the Internet-software market, Netscape has seen substantial declines in
its market share for its well-known Navigator software.

** Telephone **

Title: Legal Analysis Says Bells Can't Enter Long Distance Immediately
Source: Telecom AM---jan. 14, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Even if the decision of a Wichita Falls, Texas, judge ruling
Sections 271-275 of the Telecom Act unconstitutional is upheld, the Bell
companies affected will not be able to offer in-region long distance service
without FCC approval. The law firm Wilkie, Farr & Gallagher said Section
251(g) maintains all existing restrictions on carriers -- such as those
imposed by the Modified Final Judgment on the Bell companies -- until the
Commission removes them.

Title: BellSouth Brings Constitutionality Case To Federal Appeals Court
Source: Telecom AM---jan. 13, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: BellSouth appealed the FCC's rejection of its bid to enter the
long distance market in South Carolina, rasing the Bell company argument
that the Telecom Act's rules for entry are unconstitutional to federal
appeals court. While its filing with the U.S. Court of Appeals was expected,
its argument was not. In using that argument, BellSouth became the fourth
Bell company to challenge the constitutionality of the long distance
sections of the Act.

Title: St. Louis Appeals Court To Hear Access Charge Arguments, 2 Other Cases
Source: Communications Daily---jan. 14, 1998
Issue: Telephone Regulation
Description: Eighth U.S. Appeals Court, St. Louis, will hold triple-header
oral arguments when it hears debate on 3 FCC actions: 1) Passage of access
charge reform order, 2) use of pricing standard in Sec. 271 proceedings, and
3) decision that shared transport should be considered network element.

Title: Telephony
Source: Communications Daily---jan. 14, 1998
Issue: Telephone Regulation
Description: In the wake of the New Year's Eve decision, BellSouth became
the first RHC to rely on Bill of Attainder argument in appealing an FCC Sec.
271 decision. The company asked the U.S. Appeals Court to quickly overturn
the FCC order barring BellSouth from offering long distance service in South
Carolina. BellSouth said the Commission decision was unconstitutional for 2
reasons: 1) It's based on language in Telecom Act's Secs. 271-273, which
Wichita Falls court found to represent unconstitutional "Bill of Attainder"
because it singles out Bell companies for punishment, 2) FCC decision itself
violates Constitution's equal protection component because it singles out
Bells by name in imposing restrictions.

** Privacy **

Title: Don't Chat, Don't Tell? Navy Case Tests Privacy Limits
Source: Wall Street Journal (B1)
http://wsj.com/
Author: John Simons
Issue: Privacy
Description: A senior petty officer is about to be discharged from his post
after more than 17 years in the service, following an unusual dispute with
AOL. The charge: homosexuality. The officer, Timothy R. McVeigh (no
relation), admits to using the word "gay" to describe his marital status in
an electronic profile that he created on AOL, but says that he never thought
his name would be linked to that on-line identity. Tomorrow, McVeigh will
receive an honorable discharge for violating the military's "don't ask,
don't tell" policy on homosexuality. Mr. McVeigh's case has become a "cause
celebre" for advocates pushing for tougher legislation to guarantee on-line
privacy. Advocates believe the case could be a powerful lobbying tool
because it marks a rare example of an alleged violation of electronic
privacy leading to tangible injury. AOL denies any wrongdoing and says it
has launched an internal investigation. Ann Brackbill, a spokeswoman for
AOL, said, "We're still looking into it, but we're pretty certain our
policies were followed."

** Politics **

Title: Sticking Up For Free Speech
Source: Wall Street Journal (Op-eds, A18)
http://wsj.com/
Issue: Campaign Finance Reform
Description: It is no surprise that coverage of campaign finance reform is
so one-sided; we have compared the fanatical support for such legislation
around the Beltway to the earnestness of the Hale-Bopp cult. Inconvenient
dissents from campaign finance theology -- most of them delivered by the
courts -- are given short thrift. The latest exhibit: U.S. District Chief
Judge Lawrence Karlton, who overturned California's new campaign
contribution limits as unconstitutional. But Judge Karlton made it clear
that "because campaign contributions translate into a candidate's speech,
and are protected as associational rights, they may not be restricted to a
degree unnecessary to achieve the governmental purpose." This reinforces the
link the Supreme Court has found time and again between the propagation of a
candidate's views and free speech. The judge identified that link when he
found that the contribution limits would "make it impossible for the
ordinary candidate to mount an effective campaign for office. However,
certain candidates -- namely those with vast independent wealth -- would
have faced no restrictions on getting their message out.
*********
Webcast of PIAC meeting Friday, January 16 at
http://www.real.com/corporate/digitaltv.