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Communications-related Headlines for 7/8/97

Tyranny of the Minority

Justice Dept. Clears Takeover Of MCI by British Telecom

Phone Wars Heat Up Over Sponsorship of Ad

Justice Dept. Clears MCI's Sale to BT

Sell Jazz 90? Not So Fast, CPB Warns

FCC Delays Bell Atlantic-Nynex Merger

British Telecom Purchase of MCI Is Cleared by Justice Department

The Computer Delusion

Frequently Asked Questions on Universal Service
*********************************************
Title: Tyranny of the Minority
Source: New York Times http://www.nytimes.com/(A19)
Author: Alec Baldwin, president of the Creative Coalition
Robert Lynch, Americans for the Arts
Issue: Arts
Description: Whether you support the National Endowment for the Arts or not,
we should all agree that the full Congress should get to vote on the matter.
In editorial, Baldwin and Lynch point out that this may not happen as the
House leadership uses parliamentary rules to "block an open and fair vote."
Eliminating the NEA has become a litmus test for conservatives, but opinion
polls show that the public supports the Endowment. Only ~40 of the 112,000
grants the NEA has made have caused any controversy.

Title: Justice Dept. Clears Takeover Of MCI by British Telecom
Source: New York Times http://www.nytimes.com/(D2)
Author: AP
Issue: Mergers
Description: The Justice Department has approved the acquisition of the
nation's second largest long distance carrier, MCI, by British
Telecommunications. The deal must also be approved by the Federal
Communications Commission and a number of state regulators. MCI and British
Telecom "remain confident that the merger can be completed as expected by
fall." The new company will be called Concert.

Title: Phone Wars Heat Up Over Sponsorship of Ad
Source: New York Times http://www.nytimes.com/(D3)
Author: Mark Landler
Issue: Telephone Regulation
Description: AT&T sponsored an ad in the New York Times and other NY papers
claiming that NYNEX has the highest local phone bills in the country. But
AT&T was not mentioned anywhere in the ad and the omission has prompted
protests from consumer groups and the NY State's Attorney General, Dennis C.
Vacco.

Title: Justice Dept. Clears MCI's Sale to BT
Source: Washington Post http://www.washingtonpost.com/ (C1)
Author: Mike Mills
Issue: Mergers
Description: The Justice Department yesterday gave the ok for British
Telecommunications to purchase MCI, the country's second biggest long
distance company, for $21 billion after the companies adopt "safeguards to
ensure competitors are not unfairly hurt by the deal." The FCC now has to
decide about the merger.

Title: Sell Jazz 90? Not So Fast, CPB Warns
Source: Washington Post http://www.washingtonpost.com/ (E1)
Author: Marc Fisher
Issue: Radio
Description: Since 1991 the Corporation for Public Broadcasting has given
the University of the District of Columbia's radio station $1 million in
grants. Now that UDC is planning to sell Jazz 90 to a religious broadcaster,
CPB wants the money back. CPB's head Robert Coonrod wrote that the
District's financial control board should reimburse "CPB and the American
taxpayers for the investment in WDCU so that we can allocate the money to
further the interests of public broadcasting." Coonrod referred to the
proposed sale as a "one-time only benefit and causes the loss of a major
cultural asset, forever." CPB found that the radio station has the
forth-largest black audience of any public radio station in the country.
Again Coonrod, "The sale of the station would obviously leave this minority
population underserved." Some public radio advocates are concerned that the
sale for such a large sum ($13 million) could set a precedent for colleges
to sell their stations for quick cash to wealthy religious broadcasters.

Title: FCC Delays Bell Atlantic-Nynex Merger
Source: Wall Street Journal http://www.wsj.com/ (A3)
Author: Bryan Gruley and John R. Wilke
Issue: Mergers/Competition
Description: Officials at the FCC are delaying approval of the Bell
Atlantic-Nynex merger until the companies do more to open their local
markets to competition. The FCC is considering requiring that Bell Atlantic
and Nynex combo open its "operational support systems" to competing
companies. Access to this mongo complicated computer connection mabobby,
would allow other companies to connect customers to the Bell network.

Title: British Telecom Purchase of MCI Is Cleared by Justice Department
Source: Wall Street Journal http://www.wsj.com/ (B4)
Author: John R. Wilke
Issue: Merger
Description: The Justice Department has approved the $24 billion buy out
of MCI by British Telecommunications. This deal represents the biggest-ever
purchase of a US company by a foreign one. The Justice Department has
imposed some conditions on the merger partly to ensure an open telecom
market in Britain. The company-to-be will have an annual revenue of $43
billion, greater than 40 million customers in 72 customers, and look great
in fall colors.

Title: The Computer Delusion
Source: The Atlantic Monthly
http://www.theatlantic.com/issues/97jul/computer.htm
Author: Todd Oppenheimer, Associate Editor of Newsweek Interactive
Issue: Education Technology
Description: Atlantic Monthly's cover story this month examines the
enthusiasm surrounding the introduction of computer technology to K-12
schools. Oppenheimer takes a critical view of the efforts of technology
advocates, school districts, and the Clinton Administration to get computers
into every classroom, an endeavor which may cost $40-$100 billion over the
next five years.
.
At the FCC http://www.fcc.gov
Frequently Asked Questions on Universal Service and the
Snowe-Rockefeller-Exon-Kerrey Amendment Released July 2, 1997
*********

Communications-related Headlines for 7/7/97

A Congressman's Long Crusade for the Arts

Falling Sales Hit Publishers For 2nd Year

PC Industry Calls for a Truce in TV Wars

Legal Uncertainty Clouds Status of Contracts on Internet

Gate's largesse stirs a discomforting question: Is there indeed a computer
literacy?

Integrated Wireless Service May Be Coming Soon to a Windowsill Near You

Newsletters Find Haven on Line

Development Strategy: Close Information Gap

H&R Block Still Shopping On-Line Unit

Show Them the Money Trail

When Media Moguls Collide

Time Warner wins NYC cable news fight

In search of the I-Chip

FCC takes back channels 60-69

Networks to get leeway on kids preemptions

Hundt, Quello will clash over alcohol ads

Take a letter

Broadcasters lobby for loopholes in budget fight

Activist administration may stay out of cyber-commerce

Broadcasters welcome Minnow-less choices
*********************************************
Title: A Congressman's Long Crusade for the Arts
Source: New York Times http://www.nytimes.com/(B1)
Author: Irvin Molotsky
Issue: Arts
Description: At 88 the oldest and longest serving member of the House,
Representative Sidney Yates (D-IL) is one of the leading defenders of the
National Endowment of the Arts. This year, House republicans have approved
budget legislation with only $10 million for the NEA (President Clinton
asked for $136 million) meant to be used to shut the Endowment down. Rep
Yates is hopeful that the NEA will finally get $99 million (the same amount
it received this fiscal year) after budget negotiations between the House
and Senate conclude. He also sees more, smaller grants going to make a
bigger impact on smaller communities. Republicans criticize the NEA for only
funding projects in New York, Chicago, and Los Angeles.

Title: Falling Sales Hit Publishers For 2nd Year
Source: New York Times http://www.nytimes.com/(D1)
Author: Doreen Carvajal
Issue: Publishing
Description: Hard-cover and paperback adult trade books sales dropped by 5.3
percent between 1995 and 1996. Book sales rose steadily in the early 90's
and peaked in 1994 when 513 million copies were sold. In the past two years
however, sales have dropped by 5% or more. Problems include reliance on
computerized sales that "compress the life cycle of books" and the rise of
conglomerate-owned publishing houses.

Title: PC Industry Calls for a Truce in TV Wars
Source: New York Times http://www.nytimes.com/(D2)
Author: Joel Brinkley
Issue: Digital TV
Description: Just 3 months ago, Compaq, Microsoft and Intel announced that
they were going to muscle their way into the television market valued at
$150 billion over the next 10 years. But IBM, Dell, Packard Bell,
Hewlett-Packard, Gateway 2000, and Sony have all announced that they do not
have plans to build digital TV receivers into their computers. Without the
support of other computer manufactures, the Compaq - Microsoft - Intel
coalition may be ineffective. Compaq is the nation's largest maker of PCs,
but only controls ten percent of the market.

Title: Legal Uncertainty Clouds Status of Contracts on Internet
Source: New York Times http://www.nytimes.com/(D3)
Author: Geanne Rosenberg
Issue: Electronic Commerce
Description: Traditionally commerce has been based on hard copy contracts
signed by the participating parties. Electronic commerce and the Internet
have changed that by allowing far-flung people trade goods without ever
meeting each other. Some states have passed legislation allowing digital
signatures, but many still have not. Legal scholars are still looking for
the first big case that will set precedent for all electronic commerce.

Title: Gate's largesse stirs a discomforting question: Is there indeed a
computer literacy?
Source: New York Times http://www.nytimes.com/(D3)
Author: Edward Rothstein
Issue: Education
Description: "Are we using computer technology because we have lost the
political will to fund education adequately?" asks Sherry Turkle, a MIT
social scientist http://epn.org/prospect/31/31turkf.html. In Technology
column, Rothstein points to a number initiatives and criticisms of education
technology. See Gates Library Foundation http://www.glf.org/pr.html,
National Education Association http://www.nea.org/cet/BRIEFS/brief9.html,
San Jose Mercury News
http://www.sjmercury.com/news/local/schools/main15.html, and Atlantic
Monthly's cover story "The Computer Delusion" by Todd Oppenheimer
http://www.theatlantic.com/issues/97jul/computer.htm.

Title: Integrated Wireless Service May Be Coming Soon to a Windowsill Near You
Source: New York Times http://www.nytimes.com/(D3)
Author: Mark Landler
Issue: InfoTech
Description: Cellularvision is determined to be the nation's first
intergrated wireless provider of voice video and data services. In
Manhattan, the company is already providing unlimited, high-bandwidth
Internet access for $49.95/month and a one time $199 set-up fee. The set up
fee includes a small receiver dish, modem and a set-top convertor box. The
service provides Internet access speeds at 4x that offered by local phone
company Nynex.

Title: Newsletters Find Haven on Line
Source: New York Times http://www.nytimes.com/(D7)
Author: Sreenath Sreenivasan
Issue: Publishing
Description: Many newsletters -- from the very big to the very small -- are
using the Internet to deliver their content. The Newsletter Publishers
Association estimates that 40% of all newsletter companies have web sites.
See Kiplinger online http://www.kiplinger.com, Cutter Information
http://www.cutter.com, Phillips Publishing International
http://www.phillips.com, Communications Today http://www.telecomweb.com,
and Release 1.0 http://www.edventure.com/realse1.

Title: Development Strategy: Close Information Gap
Source: Wall Street Journal http://www.wsj.com/ (A1)
Author: Bernard Wysocki, Jr.
Issue: International
Description: At a conference last month in Toronto hosted by the World
Bank, world leaders discussed the best way to close the information gap.
Experts debated on whether providing Internet connections for schools in
sub-Saharan Africa would be a key for economic prosperity or if, simpler
technologies, like radios would be more useful. The president of the World
Bank believes that both approaches are needed. In our "electronic global
village," 80% of the world's population can't make a phone call. Needed more
are initiatives like the one run by the International Fund for Agricultural
Development which links farmers in Latin America to new markets via the
Internet.

Title: H&R Block Still Shopping On-Line Unit
Source: Wall Street Journal http://www.wsj.com/ (A3)
Author: Jared Sandberg
Issue: Industry Trends
Description: H&R Block is still looking for a good offer for its 80%
stake in Compuserve. America Online has offered to buy it, but H&R Block
didn't like
AOL's offer. Compuserve hasn't been doing too well so "any successful bidder
will be faced with mounting a turnaround." Compuserve, however, is one of
the most popular Internet service providers in Europe.

Title: Show Them the Money Trail
Source: NewsWorks http://www.newsworks.com/NewsWorks/news/0,1009,,00.html
Issue: Campaign Fiance Reform
Description: For a short time, see a collection of campaign fiance reform
articles from around the country. The congressional probe into President
Clinton's fundraising activity won't deteriorate into a partisan witch hunt,
says Sen. Fred Thompson. This year, the fireworks begin July 8.

Title: SBC's Challenge to Telecom Act Could Hinge on Ruling That Separate
treatment of Bells Is Punitive
Source: Telecommunications Reports http://www.tr.com/ (p.1)
Issue: Telecommunications Act of 1996/Telephone Regulation
Description: SBC Communications Inc, is challenging the constitutionality of
line-of-business restrictions in the Telecommunications Act of 1996. SBC
says the Act improperly singles out Bell operating companies from other
local exchange carriers. A SBC executive said, "The lawsuit challenges only
that portion of the Act which singles out and excludes SBC from competing in
certain lines of business. SBC is not challenging those portions of the Act
which require all local exchange companies, including SBC, to open their
local networks to competition." On Capitol Hill, Rep Billy Tauzin (R-LA),
Chairman of the House Telcom Subcommittee, said that the law is not the
problem, its the way its being implemented -- blaming the Federal
Communications Commission.

Title: When Media Moguls Collide
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 4)
Author: John M. Higgins and Steve McClellan
Issue: Media Mergers
Description: Media executives have been closely watching the recent
bidding wars between News Corp. and Walt Disney for children's entertainment
and sports deals. News Corp., not Disney, got a hold of the Family Channel,
and News Corp. also secured Cablevision's SportsChannel to put together a
sports network which will challenge ESPN, owned by Disney. Fights like this
are going to become more common among big media companies. "As the biggest
players continue to gobble up other big players -- Viacom Inc. and Paramount
Communications Inc., Time Warner Inc. and Turner Broadcasting -- they become
emboldened to attack other companies' most lucrative niches."

Title: Time Warner wins NYC cable news fight
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 5)
Author: DP
Issue: Cable Regulation
Description: An appeals court ruled in Time Warner's favor that New York
City could not air News Corp's Fox News Channel on the city's public access
channels. The city was trying to force Time Warner to show Murdoch's
channels on the public access network after Time Warner wouldn't show them
on any commercial channels. The New York City government argued that the news
network, because it is based in the city, would bring in it a lot of jobs
and was news-based so it should be shown.

Title: In search of the I-Chip
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 10)
Author: Paige Albiniak
Issue: Internet content
Description: Last week President Clinton said he wanted to gather
industry leaders and representatives of Internet users, parent groups, and
educators to develop protections to shield children from objectionable
content on the Internet in a fashion similar to the television V-Chip.
Representative Ed Markey (D-Mass), according to one of his aides, isn't too hot
on the V-Chip analogy. Rep. Markey has presented a bill which would obligate
Internet service providers to provide customers with blocking software free
of cost. Rep. Billy Tauzin (R-LA), House Telecommunications Subcommittee
Chairman, agrees that children should be shielded from inappropriate
electronic materials, but a Tauzin aide stated that, "We think that should
happen in the form of a voluntary cooperative agreement with the Industry."
Rep. Tauzin is going to introduce a bill aimed at keeping the government from
bothering the Internet with new regulations.

Title: FCC takes back channels 60-69
Source: Broadcasting&Cable http://www.broadcastingcable.com/(pg. 14)
Author: Chris McConnell
Issue: Spectrum
Description: The FCC is going to take back channels 60-69 and give four
of them to public safety services and the rest to commercial services such
as mobile phones or two-way radio. The Commission is not eliminating the
possibility that those channels could be used for TV, possibly in an effort
to increase minority ownership in television.

Title: Networks to get leeway on kids preemptions
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 14)
Author: Chris McConnell
Issue: Children's TV
Description: The FCC will allow networks to move scheduled children's
educational programming around so as to make room for weekend sports. FCC
officials report that they will evaluate how the preempting worked after one
year. Stations must show three hours of 3educational programming for kids a
week and,
in a draft of the regulations, though cut from the final, if a show is
bumped more than 10% of a thirteen week run, the stations couldn't count it.

Title: Hundt, Quello will clash over alcohol ads
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 16)
Author: Chris McConnell
Issue: Advertising
Description: FCC Chairman Reed Hundt wants the FCC to investigate
hard-alcohol advertising on TV. FCC Commissioner James Quello doesn't
believe the FCC has the jurisdiction to work in that area. The FCC will
vote on the issue this week. Hundt and Ness are expected to vote for an
investigation and Quello and Chong will vote against. With a tie, nothing
will happen.

Title: Take a letter
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 16)
Author: B&C Staff
Issue: V-Chip
Description: House Telecommunications Subcommittee Grand Poo Bah Billy
Tauzin (R-La) was planning last week to send a letter to Jack Valenti, who
heads up the entertainment industry's side in the V-Chip debates, promising
that if negotiators can make a deal, broadcasters will not have to deal with
any ratings legislation for three years. Tauzin wanted House Speaker Newt
Gingrich (R-GA) and Rep Thomas Bliley (R-VA), Chairman of the House
Commerce Committee
to sign on to the letter. Rep Gingrich would only sign on if Rep Bliley did and
Rep Bliley wasn't ready yet to make promises without knowing the final deal.
There will be no such supportive letters for broadcasters coming from the
Senate.

Title: Broadcasters lobby for loopholes in budget fight
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 18)
Author: Paige Albiniak
Issue: Digital TV
Description: The budget bill chugging through the House-Senate conference
has some big wins for broadcasters in terms of spectrum flexibility and
deadlines. The Administration, however, is hoping to add some limitations.
The administration wants spectrum user fees, a set date for when the analog
channels must be returned, and penalties if broadcasters don't meet the
digital rollout deadlines. Ranking Commerce Committee member Rep. John
Dingell (D-Mich) agrees with the President. The conference committee could
start negotiations again tomorrow. "The biggest win for broadcasters so far
is the 'market tests' in both versions of the bill. Those tests would give
broadcasters use of the spectrum far beyond the targeted 2006 give-back
date." The article contains more details on broadcasting-related language
in the bill.

Title: Activist administration may stay out of cyber-commerce
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 18)
Author: PA
Issue: Internet Regulation
Description: In a report released last week, the Administration indicated
that it would not become involved in regulating Internet commerce. According
to the report, with no regulation, Internet commerce is supposed to reach
$200 billion by 2000.

Title: Broadcasters welcome Minnow-less choices
Source: Broadcasting&Cable http://www.broadcastingcable.com/ (pg. 19)
Author: Chris McConnell
Issue: Digital TV
Description: Broadcasters are happy that Leslie Moonves, President of
CBS Entertainment, is co-chairman on the Administration's advisory group on
the public interest obligations of digital TV broadcasters. Broadcasters are
also happy that former
FCC Chairman Newton Minnow is not on the panel. The other co-chair is
Norman Ornstein of the American Enterprise Institute. President Clinton
supports free-time for candidates. In a radio address, Clinton said "That's
the least we can ask broadcasters, who are given access to the public
airwaves worth billions of dollars at no cost, with only the
requirement that they meet a basic public obligation." Ornstein has done much
writing in support of free-time for candidates. FCC Chairman Reed Hundt was
hoping to launch an FCC inquiry into broadcasters' public interest
obligations, but commissioners Quello and Chong have been resisting the
proposal.
*********

Communications-related Headlines for 7/3/07

Stymied, SBC Seeks to Void Portion of Law

SBC Files Challenge to Telecom Law

Why Is AT&T Afraid to Compete?

AT&T and Italy's Stet Are Teaming Up As U.S. Giant Plays Catch-Up Overseas

Clinton Supports Internet "Hands Off" Policy

click.on.art

Chairman Hundt Praises New Electronic Commerce Report
*********************************************
Title: Stymied, SBC Seeks to Void Portion of Law
Source: New York Times http://www.nytimes.com/(D1)
Author: Mark Landler
Issue: Phone Regulation
Description: Local phone monopoly SBC is suing the Government claiming that
a portion of the Telecommunications Act of 1996 which restricts the Baby
Bells from entering the long distance market is unconstitutional. The suit
was filed one week after the company was denied entry to Oklahoma's long
distance market. A representative for AT&T said the legal action is "a slap
in the face of the Congress, the FCC and competition."

Title: SBC Files Challenge to Telecom Law
Source: Wall Street Journal http://www.wsj.com/ (A3)
Author: Bryan Gruley, John J. Keller, and Leslie Cauley
Issue: Phone Regulation
Description: SBC Communications, the southwestern Baby Bell, is going to
court to prove that the Telecommunication Act's regulations on what Baby
Bells need to do to enter the long-distance market are unfairly more
difficult than the regulations for independent local carriers like GTE to
enter long distance. The suit follows the FCC's decision last week that SBC
could not start providing long distance service in Oklahoma because it had
not sufficiently opened its local market to competitors. "SBC's lawsuit is
yet more evidence that Congress's attempt to open the nation's telecom
markets to competition is thus far a failure. Instead of invading one
another's phone, video and other communications markets, potential rivals
have squared off in scores of lawsuits filed in state and federal courts
across the country."

Title: Why Is AT&T Afraid to Compete?
Source: Wall Street Journal http://www.wsj.com/ (A10)
Author: Duane Ackerman
Issue: Phone Competition
Description: Duane Ackerman, CEO of BellSouth, responds to AT&T Chairman
Allen's comments that Baby Bells are stalling the development of competition
by being laggard in opening their local markets. Ackerman contends that the
Baby Bells can't get into the long distance market until they prove that
there is competition in their local markets, but that AT&T and other
long-distance carriers are intentionally not trying to enter the local
markets so that the Baby Bells will continue to be denied access to the
lucrative long distance market. "It profits AT&T to stay out of residential
service to the tune of $1.6 billion a year in the nine states Bell South
serves. That's the share of the long distance market that economic analyses
suggest Bell South would take if it were allowed to
enter the long-distance market."

Title: AT&T and Italy's Stet Are Teaming Up As U.S. Giant Plays Catch-Up
Overseas
Source: Wall Street Journal http://www.wsj.com/ (B6)
Author: Gautam Naik and Maureen Kline
Issue: International, mais oui!
Description: AT&T has made a deal with Italy's Stet, the national
phone carrier and the fifth biggest phone company in the world. This
agreement should give AT&T a much needed boost in its efforts to stay
competitive in the European phone market. MCI has already been bought by
British Telecommunications, and Sprint Co. sold a chunk of itself to Germany
and France's national carriers. AT&T and Stet will cosponsor a venture to
provide phone and data services in Latin America.

Title: Clinton Supports Internet "Hands Off" Policy
Source: Telecommunications Reports Daily
http://www.tr.com/netline/netline.html
Issue: Electronic Commerce
Description: To enable the rapid development of electronic commerce, the
Clinton Administration will adopt a "hands off" policy toward the Internet.
"In the 21st Century, we can build much of our prosperity on innovations in
cyberspace in ways that most of us cannot even
imagine," President Clinton said. Recommendations in the report include
declaring the Internet a tariff-free environment, industry self-regulation,
and private sector development of a market-driven, not regulated industry.
[The full report is available at
http://www.whitehouse.gov/WH/New/Commerce/] [ For a brief time only, see
http://www.newsworks.com/NewsWorks/scitech/0,1163,,00.html for coverage of
the report from around the country]

Title: click.on.art
Source: Sun Spot Today http://www.sunspot.net/
Author: Holly Selby
Issue: Arts/Internet
Description: An increasing number of art gallery owners are setting up shop
on the Internet. They find it to be an inexpensive way to showcase artists'
new work, biographies, calendars listing future exhibitions, "even virtual
reality galleries, where artworks appear to be hanging on the gallery
walls." One gallery owner says, "You can make a lot of decisions about what
you might like without ever going to a gallery. This doesn't take the place
of looking at an original work of art, but you can get a really good idea of
what's out there and what you like and don't like."
[For more information see Open Studio at http://www.openstudio.org/]

At the FCC http://www.fcc.gov
Chairman Hundt Praises New Electronic Commerce Report
http://www.fcc.gov/Speeches/Hundt/spreh736.html
*********
Have a safe and happy 4th. We'll be back -- right-eyed and bushy-tailed on
Monday.

Communications-related Headlines for 7/2/97

Airwaves Auctions May Hurt Military, GAO Report Says

FCC Is Turned Back in Plan to Reimburse Pay-Phone Operators

Clinton Minimize Internet Regulation, Seeks Free-Trade Zone Status for the Web

Clinton Calls A Summit on Internet Smut

As Reelections Curtain Time Nears, Senator From New York Changes Tune on NEA

Area Commuters Take Traffic Information Service for a Spin

Telecommunications Reform

Library calls police about man viewing nude boys on Internet

FCC fouls pitches for DQ, Advil
*********************************************
Title: Airwaves Auctions May Hurt Military, GAO Report Says
Source: Wall Street Journal http://www.wsj.com/ (A7)
Author: Bryan Gruley and Thomas E. Ricks
Issue: Spectrum
Description: Congressional auditors and the National Security Council
have decided that allowing certain airwaves to be used commercially could be
problematic for military operations because the auctioned radio spectrum
could interfere with military spectrum. As the military moves to a more
"information intensive style of war-fighting," as a special assistant to the
President put it, more demands will be put on radio spectrum.

Title: FCC Is Turned Back in Plan to Reimburse Pay-Phone Operators
Source: Wall Street Journal http://www.wsj.com/ (B2)
Author: WSJ Staff Reporter
Issue: Phone Regulation
Description: According to a decision by a U.S. appeals court, the FCC
needs to redesign its rule that long-distance companies have got to
reimburse pay-phone operators more for access-code calls or toll-free calls.
The court approved other sections of the FCC's new rules for local pay-phone
rates.

Title: Clinton Minimize Internet Regulation, Seeks Free-Trade Zone Status
for the Web
Source: Wall Street Journal http://www.wsj.com/ (B5)
Author: Chana R. Schoenberger
Issue: Internet Regulation
Description: At the release of a new administration report on Internet
commerce, President Clinton announced that "he will ask the World Trade
Organization to turn the Internet into a 'free-trade zone.'" Clinton does
not plan to tax Internet commerce. The Administration does plan to remain
active in a regulatory kind of way in the areas of "intellectual property
protection, domain names and privacy concerns, with special emphasis on the
safety of children who use the Internet." Many tech companies are still
concerned about the Administration's stance on exporting encryption codes.

Title: Clinton Calls A Summit on Internet Smut
Source: Washington Post http://www.washingtonpost.com/ (A6)
Author: Peter Baker and Rajiv Chandrasekaran
Issue: Internet Content
Description: President Clinton plans to bring together educators,
industry leaders, and parent representatives to develop "a voluntary plan
for denying children access to inappropriate material." This announcement
comes a few days after the Administration's decision to use a relatively
hands-off policy on Internet commerce. To protect children, "Clinton hopes
to use the stature of his office to accomplish what federal law could not,
putting pressure on the industry to police itself in the absence of any
direct government intervention. The strategy mimics the formula Clinton
used last year to persuade television executives to adopt a ratings system
after years of resistance."

Title: As Reelections Curtain Time Nears, Senator From New York Changes
Tune on NEA
Source: Washington Post http://www.washingtonpost.com/ (A11)
Author: Blaine Harden
Issue: Arts and Culture
Description: In 1989, Senator Alfonse D'Amato (R-NY) along with Senator
Jesse Helms (RRRRR-NC) tore up a catalog from the National Endowment of the
Arts and made clear that he did not agree with using federal money to
support certain artists. Yesterday, D'Amato was singing a different tune
to earn points with New York liberal voters. New York is the largest
recipient of grants from the NEA. The senator poo-pooed the Republican
effort to cut NEA's budget and said "the health and vitality of the arts
community must be nurtured, must be strengthened, and now is not the time to
turn our backs on it."

Title: Area Commuters Take Traffic Information Service for a Spin
Source: Washington Post http://www.washingtonpost.com/ (B1)
Author: Alice Reid and Sewell Chan
Issue: Info Tech
Description: SmarTraveler (202-863-1313 or http://www.smartraveler.com) is
a new
phone and Internet service to give District of Columbia commuters
information on traffic flow.
SmarTraveler is a $12.5 million project supported by 12 private companies
and 25 public agencies.

Title: Telecommunications Reform
Source: Slate http://www.slate.com/Gist/97-06-28/Gist.asp
Author: David Franklin
Issue: Competition
Description: A look at the Telecommunications Act of 1996, the potential of
convergence and the promise of competition in telephony and video delivery.
[Shameless plug alert! Story contains link to Benton site at
http://www.benton.org/Policy/96act/]

Title: Library calls police about man viewing nude boys on Internet
Source: Beacon Journal Online http://www.ohio.com/bj/news/docs/010019.htm
Author: Keith McKnight
Issue: Libraries/Internet Content
Description: An Ohio man was arrested after viewing and downloading child
pornography at a public library computer terminal. The library staff called
the police. "Traditionally, librarians have protected their records of
lending activity to the point of being subpoenaed or going to jail," says
Chris Link, executive director of the American Civil Liberties Union of
Ohio. But now, "librarians are scrutinizing what it is you look at and
reporting you to the police."

Title: FCC fouls pitches for DQ, Advil
Source: Houston Chronicle http://www.chron.com/
Author: R.G. Ratcliffe
Issue: Free Air Time for Candidates
Description: Former major league pitcher Nolan Ryan is considering running
for agriculture commissioner of Texas. But Ryan has lucrative television
commercial deals with Dairy Queen and Advil and would like to continue those
deals during an election. But the Federal Communications Commission and the
National Association of Broadcasters say that's a no-no. Since Ryan would
not be paying to air the ads, they could be seen as illegal campaign
contributions by the companies and rival candidates could request equal
time. A senior FCC official said that TV stations refused to run Ronald
Reagan ads while he was running for President because they would have had to
give opponents equal time.
*********

Communications-related Headlines for 7/1/97

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

Court Gets Rival Plans for USA Network

Shhhh! Reed Hundt Has Seen the Future

Tiny Tonga Expands Its Domain

One Last Request for Jazz 90

Telecommunications Act fails consumers

Phone competition off to a slow start

Churn up, shares down in L.A.

No spectrum fees in budget bills

Is I-chip next for the Internet?

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

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

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

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

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

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

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

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

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

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

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

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

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

*********

Communications-related Headlines for 6/30/97

Let It Be

The SBC Deal Shelved, What Tack For AT&T

A Father, A Friend, a Seller of Cyberporn

On the Net: Autistics, freed from face-to-face encounters, are communicating in
cyberspace

New Service Skims 150 Newspapers for Its Users

Microsoft Wants Information To Travel the Real Highway

Lowell Paxson has a dream: to start yet another television network

Digital 'Watermarks' Assert Internet Copyright

Homosexual imagery is spreading from print campaigns to
general-interest TV programming

AT&T-SBC Plan Is Ended By Phone Call

Germany's Telekom Slows Its Spending

FCC to Issue the Long-Sought License For Ellipso's Satellite Phone
Service

Microsoft Adds A 'Firewall' To Next Server

NBC Is Expected To Provide Viewers With Digital Data

Ticketmaster and Excite In Pact for Internet Sales

FTC Asked to Probe Microsoft Compliance With Antitrust Pact

News Corp. Unit Slashes Number Of Book Projects

Clinton Backs No New Taxes On Internet

In Computer Age, Postal Service Needs More Checks in the Mail

Interesting Times at the FCC
*********************************************
Title: Let It Be
Source: New York Times http://www.nytimes.com/(D1)
Author: John Broder
Issue: Internet Regulation
Description: Ira Magaziner, the architect of President' Clinton's failed
national health care proposal, has spent the past 15 months studying the
Global Information Infrastructure, the Internet. In a White House report due
for release this week, Magaziner's answer for most Internet-related problems
-- from copyright to pornography -- is to do "Not much." Magaziner believes
the Internet community should be allowed to flourish free of Government
interference and with industry self-regulation.

Title: The SBC Deal Shelved, What Tack For AT&T
Source: New York Times http://www.nytimes.com/(D1)
Author: Mark Landler
Issue: Mergers
Description: On Fiday, AT&T and SBC broke off merger talks. "This was a Hail
Mary pass," a Merrill Lynch analyst said. "AT&T was attempting to declare
peace on one front so it could defend all its other fronts." AT&T must now
regroup and figure out how it will compete for local customer as every other
telecommunications company seeks to gain its long distance customers.

Title: A Father, A Friend, a Seller of Cyberporn
Source: New York Times http://www.nytimes.com/(D1)
Author: Seth Schiesel
Issue: Internet Content
Description: The Communications Decency Act, struck down by the Supreme
Court last week, was supposed to make doing business harder for the likes of
Joe Warshowsky who runs Video-fantasy.com, a live stripshow on the Internet.
But Warshowsky says that minors can't afford his $6/hr service nor can they
access anything before their identity is confirmed via a phone call.

Title: On the Net: Autistics, freed from face-to-face encounters, are
communicating in
cyberspace
Source: New York Times http://www.nytimes.com/(D6)
Author: Harvey Blume
Issue: Disability
Description: In Technology column, Blume looks at how autistics are using
the Internet to do what they are supposed to be unable to do --
communicate.See Independent Living at http://www.inlv.demon.nl/ and On the
Same Page http://amug.org/~a203/index.html.

Title: New Service Skims 150 Newspapers for Its Users
Source: New York Times http://www.nytimes.com/(D8)
Author: Iver Peterson
Issue: Newspapers/Internet
Description: "Everything that's news in any town in America originates in a
newspaper, but a huge percentage of it goes to waste because 99% of the rest
of the country never gets to see it," says Newsworks' editor in chief, John
Papanek. Newsworks http://www.newsworks.com sifts, organizes, and links to
stories in 150 newspapers around the country. The new site hopes to break
into the Web news market currently dominated by Yahoo, Netscape, Microsoft,
and about a dozen large newspapers. These sites have about 80% of the
advertising revenue on the Internet.

Title: Microsoft Wants Information To Travel the Real Highway
Source: New York Times http://www.nytimes.com/(D9)
Author: Keith Bradsher
Issue: Info Tech
Description: Microsoft is developing tools so people can use computers in
their cars using cellular phone connections. The auto industry has safety
concerns, especially since cell phone users have higher accident rates, but
Microsoft believes it can handle safety problems by making car computers
with speech recognition.

Title: Lowell Paxson has a dream: to start yet another television network
Source: New York Times http://www.nytimes.com/ (D10)
Author: Geraldine Fabrikant
Issue: TV
Description: Lowell Paxon owns 55 TV stations, started the interactive home
shopping business in 1977, and wants to be, he explains, "the United States
Post Office of Eyeballs" by creating a new television network. In a sense,
Paxton already has a network since he can reach 58 percent of the TV
audience, but he does not produce programming. Paxton is going about
network creation intentionally backwards by, as one analyst put it, putting
down the railway tracks and hoping that someone will ride over it because he
bought stations first. Paxton has a hard goal -- WB and Paramount are two
new networks and after two years neither of them are making a profit. The
article has a chart documenting the market penetration, hours of
programming, etc. of the major networks.

Title: Digital 'Watermarks' Assert Internet Copyright
Source: New York Times http://www.nytimes.com/ (D11)
Author: Andrew Ross Sorkin
Issue: Copyright
Description: To cut down on copyright infringement, in other words to
cut down on people pirating its online pictures of women who aren't wearing
much, Playboy is going to start putting a "digital watermark" on its images.
The watermark lets Playboy "encode ownership information into the photograph
and will also let the magazine track unauthorized copies of images on the
Internet." Hooters is investigating a similar electronic marking process
(not true).

Title: Homosexual imagery is spreading from print campaigns to general-interest
TV programming
Source: New York Times http://www.nytimes.com/ (D12)
Author: Stuart Elliot
Issue: Advertising
Description: Commercials on broadcast and cable are using homosexual
imagery to market to gays and lesbians as well as general audiences. Ads
use same sex couples, cross-dressing, (the "seeing a lot of people you never
expected to see in women's clothes" ads as one analyst put it), and
transexuality. A lot of ads with same sex couples are referred to as
"gay-vague" -- when it's not certain what the relationship is between the
two people. The ad for Volkswagen with two young men roaming around the
country in a Golf falls into this category. This ad has been incredibly
popular.

Title: AT&T-SBC Plan Is Ended By Phone Call
Source: Wall Street Journal http://www.wsj.com/ (A3)
Author: Leslie Cauley and John J. Keller
Issue: Mergers
Description: SBC told AT&T that it wanted to end merger talks.
Discussions had not gone smoothly and typical of the negotiations, the two
companies could not even agree on the exact reasons the talks were broken
off. SBC representatives were angered by AT&T Chairman Allen's comments
about the Bells' reticence to open local markets.

Title: Germany's Telekom Slows Its Spending
Source: Wall Street Journal http://www.wsj.com/ (A11)
Author: Silvia Ascarelli
Issue: International
Description: Last year Germany's main phone company, Deutsche Telekom, was
making lots of deals to prepare itself for the competition to conquer the
international phone market. This year Telekom has scaled back its spending,
but not its ambitions. The company is now looking for fewer, but larger
deals. The government is also going to sell more shares of Telekom to
raise $14.5 billion.

Title: FCC to Issue the Long-Sought License For Ellipso's Satellite Phone
Service
Source: Wall Street Journal http://www.wsj.com/ (B6)
Author: Jeff Cole and Bryan Gruley
Issue: Satellite
Description: The FCC will issue a license for a global satellite phone
network, called Ellipso, to Mobile Communications Holdings, Inc. Ellipso
will crowd the market of companies providing "go-anywhere global service
mobile phones."

Title: Microsoft Adds A 'Firewall' To Next Server
Source: Wall Street Journal http://www.wsj.com/ (B6)
Author: Dean Takahashi
Issue: Security
Description: Microsoft is going to include Internet "firewall" software in
its next server. A firewall is a security software system that "connects a
private company's network with the public Internet without compromising
security." Microsoft's decision to enter the firewall market will be bad
news for many smaller companies already specializing in this type of software.

Title: NBC Is Expected To Provide Viewers With Digital Data
Source: Wall Street Journal http://www.wsj.com/ (B8)
Author: Kyle Pope
Issue: Digital TV
Description: NBC is going to be the first big American network to allow
viewers to "access digital information about programs as they are being
aired." Today Show watchers could order recipes demonstrated on the show.
Olympic watchers could demand stats on athletes and viewers could request
coupons for products in advertisements. This Fall, about 800,000 viewers who
have special set top boxes will be able to try out the service.

Title: Ticketmaster and Excite In Pact for Internet Sales
Source: Wall Street Journal http://www.wsj.com/ (B8)
Author: WSJ Staff Reporter
Issue: Electronic Commerce
Description: Ticketmaster sued Microsoft in April because Microsoft's
Sidewalk site linked to Ticketmaster without permission. Ticketmaster just
announced that it has made a deal to sell tickets through the Internet
search service Excite. Ticketmaster and Excite will share profits.
Ticketmaster also agreed to link with CitySearch, the biggest competitor to
Microsoft's Sidewalk.

Title: FTC Asked to Probe Microsoft Compliance With Antitrust Pact
Source: Wall Street Journal http://www.wsj.com/ (B12)
Author: WSJ Staff Reporter
Issue: Microsoft/Antitrust
Description: Senators Burns (R-Montana), Stevens (R-Alaska), and Thomas
(R-Wyoming) have asked the Federal Trade Commission to investigate claims
that Microsoft has violated the terms of a 1994 antitrust settlement. The
letter the senators sent to the FTC did not outline who made the allegations
or what the supposed violations were. Microsoft has been under
investigation for various antitrust issues for most of the 90s.

Title: News Corp. Unit Slashes Number Of Book Projects
Source: Wall Street Journal http://www.wsj.com/ (B12B)
Author: G. Bruce Knecht
Issue: Publishing
Description: HarperCollins, owned by News Corp., is canceling more than
100 book projects it commissioned. HarperCollins says it canceled
commissions because authors missed deadlines or it decided it couldn't
publish certain projects "well." Analysts also believe that company's
recent financial troubles made it cancel a larger number of books than usual.

Title: Clinton Backs No New Taxes On Internet
Source: Washington Post http://www.washingtonpost.com/ (A1)
Author: Ravjiv Chandrasekaran
Issue: Internet Regulation
Description: The Clinton Administration will not regulate or tax
electronic commerce conducted over the Internet. The Administration's
reasoning will be available in a report, entitled "A Framework for Global
Electronic Commerce," to be released tomorrow. The decision may put the
Administration at odds with state and local governments who have been
positive about special Internet taxes. The Administration will still have
an active role in children's privacy and encryption export.

Title: In Computer Age, Postal Service Needs More Checks in the Mail
Source: Washington Post http://www.washingtonpost.com/ (A11)
Author: Bill McAllister
Issue: Electronic Commerce
Description: The Post Office is losing money because more people are paying
bills electronically and not using stamps and the mail system. The office's
share of the "correspondence and transaction" market has dropped 18
percentage points since 1988. Article has chart with post office revenue
over time.

At the FCC http://www.fcc.gov
Remarks Commissioner Rachelle B. Chong, Bridging Digital Technologies and
Regulatory Paradigms, Berkeley, California, June 27, 1997 "Interesting Times
at the FCC"
*********

Communications-related Headlines for 6/27/97

Court Protects Speech On Internet

HaperCollins Cancels Books In Unusual Step for Industry

For Parents, a New and Vexing Burden

Clinton Readies New Approach on Smut

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

Money for Arts and Land Purchase Rejected

AT&T-SBC Merger Plans Are Crumbling

High Court Strikes Down Internet Smut Law

1st Amendment Applies To Internet, Justices Say

Smut Ruling Ratifies the Internet's Founding Principles

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

Yes, the Net is Speech

Long-Distance Field Barred To Bell Firm

GTE FILES UNIVERSAL SERVICE CASE IN 8TH CIRCUIT

Commission Adopts FY 1997 Regulatory Fee Schedule.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Communications-related Headlines for 6/26/97

Supreme Court Rules CDA Unconstitutional

Justice Dept. Deals Setback To Ameritech In Michigan

Ameritech's Long-Distance Application Draws Rebuff From Justice Department

Wireless Bidders Ask to Restructure Debt

TV Ratings Talks Stall Over Threat of Hill Action

Non-Accounting Safeguards

Forum to Promote Standards for Telehealth Equipment
*********************************************
Supreme Court Rules CDA Unconstitutional see http://www.ciec.org/
"The (Communications Decency Act) is a content-based regulation of speech.
The vagueness of such a regulation raises special First Amendment concerns
because of its obvious chilling effect on free speech."
-- Justice John Paul Stevens, writing for the majority

Title: Justice Dept. Deals Setback To Ameritech In Michigan
Source: New York Times http://www.nytimes.com/(D1)
Author: Mark Landler
Issue: Phone Regulation
Description: The Justice Department recommended that Baby Bell Ameritech not
be allowed to enter the long distance market in Michigan where it provides
local service. Although Joel Klein, chief of the antitrust division, said
that "local competition is beginning to take root in Michigan," the
recommendation to the Federal Communications Commission said that Ameritech
has failed to open its existing market. The FCC will make the final decision
on the matter by August 19.

Title: Ameritech's Long-Distance Application Draws Rebuff From Justice
Department
Source: Wall Street Journal http://www.wsj.com/ (B8)
Author: John R. Wilke
Issue: Phone Regulation
Description: The Justice Department told Chicago-based Ameritech
yesterday that it couldn't enter the long-distance market in Michigan
because it hasn't
sufficiently opened its local market to competition. This decision comes at
the same time Congress is battling with the Justice Department about how to
read the Telecommunications Act of 1996. Joel Klein is the acting head of
the anti-trust division of the Justice Department. Rep. Thomas Bliley
(R-VA) thinks that Klein, in an earlier decision, set "a lower threshold for
Bell entry into long distance than Congress intended." And Senator Bob
Kerrey (D-Neb) will prevent a vote on Klein to become the head of the
anti-trust decision unless Klein's position on long distance is made more
clear.

Title: Wireless Bidders Ask to Restructure Debt
Source: Wall Street Journal http://www.wsj.com/ (A3)
Author: Bryan Gruley and Quentin Hardy
Issue: Spectrum
Description: Several wireless companies stated that they can't pay the
millions of dollars they bid to receive FCC spectrum licenses and may have
to default on their payments. The companies want the federal government to
restructure their debt by postponing any payments until 8 years from now or
cut the amount they owe in half. However the FCC decides to respond, it is
unlikely the government will collect the $10.2 billion dollars it
theoretically raised with the auctions.

Title: TV Ratings Talks Stall Over Threat of Hill Action
Source: Washington Post http://www.washingtonpost.com/ (E1)
Author: Paul Farhi
Issue: V-Chip
Description: Representatives from the TV industry and parent advocacy
groups (the PTA, the NEA, and the American Medical Association) have
stalemated in their efforts to revise the TV ratings system. The groups
have reached agreement on the basic ratings to be used. "Now, however, a
key side issue -- how long the industry will be exempt from federal
legislation that would force ratings changes -- is threatening to scuttle a
voluntary solution." The new ratings system would include the content
indicators S, V, L, D (for suggestive Dialogue) and FV (for fantasy violence
for the Y-7 category). TV and cable representatives want to be protected
from any legislation that would affect their industry for three years. The
parent groups are unwilling to agree to that.

At the FCC http://www.fcc.gov
FCC releases Second Order on Reconsideration on Implementation of the
Non-Accounting Safeguards of Sections 271 and 272 of the Communications Act
of 1934, as Amended (CC Docket No. 96-149, FCC 97-222).

Forum to Promote Standards for Telehealth Equipment to be Held July 17
*********

Communications-related Headlines for 6/25/97

Lobbyists for TV Angle to Elude Rules to Return Free Channels

TV Ratings Are Mired In Demand By Industry

Another Broadcast Giveaway

British Digital TV Licenses Are Awarded

Netscape and Microsoft Are Cleared on Exports

Software Moguls Suddenly Compete To Be Nice Guys

Netscape, Microsoft Get Export Permits For Software With Strong Encryption

Nonprofit Group Will Inherit NSF's IP Number Duties

Buyer Sought for District Cablevision

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

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

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

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

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

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

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

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

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

*********

Communications-related Headlines for 6/24/97

Or You Could Just Read a Book

Unlikely Warrior Leads the Charge for a Simpler PC

Gates to aid Libraries, in Footsteps Of Carnegie

UtiliCorp and Peco, Aided by AT&T, To Launch One-Step Utility Service

Fox-TCI Plan Creates First Serious Rival to ESPN

FCC Is Prepared to Reject SBC's Bid To Offer Long-Distance Phone Service

TCI Is Closing Deals With Time Warner, Others to Shed Subscribers, Slash
Debt

Microsoft's Gates Plans $200 Million Gift to Libraries

A Sporting Chance To Be No. 1

*********************************************
Title: Or You Could Just Read a Book
Source: New York Times (A29)
Author: Rob Long
Issue: V-Chip
Description: In his op-ed, Long, a TV writer and producer, suggests a more
useful series of television ratings such as TV-NoWay "Program is set in an
apartment too spacious and hip for any of the characters to afford in real
life," TV-Woo "At filming, studio audience was encouraged to shout 'woo!'
during moments with even a hint of romantic undertone," and TV-Ug? "Male
lead is a balding, unattractive, schmo-like creature but, inexplicably,
strongly appeals to women of all ages."

Title: Unlikely Warrior Leads the Charge for a Simpler PC
Source: New York Times (C1)
Author: James Gorman
Issue: Info Tech
Description: Dr. Michael L. Dertouzos, the head of MIT's computer labs,
thinks that personal computers need a lot of improving. He details what's
wrong in his new book "What Will Be" published by Harper Collins. He
thinks PCs have too many features, too few of which we actually need, are
too complicated to understand, and often end up in charge of the user.

Title: Gates to aid Libraries, in Footsteps Of Carnegie
Source: New York Times (D1)
Author: Steve Lohr
Issue: Libraries/Philanthropy
Description: Bill Gates of Microsoft is planning to create The Gates
Library Foundation, which will spend $200 million over five years to help
public libraries, primarily those in low-income areas, gain Internet access.
Gates is being likened to Andrew Carnegie, an earlier philanthropist who
helped build more than 2,500 libraries. Critics will accuse Gates of being
self-serving by using this initiative to promote Microsoft products. The
library foundation is distinctive from other library support programs
because of its narrow focus and marks one of Gate's biggest philanthropic
investments. "This foundation is his first big sustained effort, something
that seeks to make a lasting change that could affect millions of people,"
stated Andrew Blau of the Benton Foundation, an organization made famous by
its brilliant, effervescent, humble, up with people daily headlines
service. This effort will be based upon Microsoft's commitment to the
Libraries Online! program, which provided training and financial support for
Internet connections to a number of libraries.

Title: UtiliCorp and Peco, Aided by AT&T, To Launch One-Step Utility Service
Source: Wall Street Journal (A3)
Author: Benjamin A. Holden
Issue: Mergers
Description: Peco and UtiliCorp, two utility companies, are going to
start, with support from AT&T, a new company that would let customers get
natural gas, phone, electric, Internet home security packages, and dog
walking services all in one package.

Title: Fox-TCI Plan Creates First Serious Rival to ESPN
Source: Wall Street Journal (B8)
Author: John Lippman
Issue: Mergers
Description: News Corp. and TCI have agreed to purchase a 40% stake in
Rainbow Media Sports Holdings Inc., which Cablevision Systems Corp. owns 75%
of, for $850 million. This purchase will allow News Corp and TCI to
challenge ESPN with a national sports network. ESPN is owned by Disney.
Murdoch is also currently trying to buy the Los Angeles Dodgers. The new
TCI-News Corp. creation will "sell national advertising by cobbling together
regional sports channels under one banner called Fox Sports Net. Though the
regional channels would show their usual local programming such as news and
highlights shows could be shown on all the regional networks
simultaneously." "The new venture would combine nine regional sports
channels jointly operated by News Corp. and TCI with eight regional sports
channels operated by Rainbow."

Title: Software Developer To Unveil Coupons For Use on Internet
Source: Wall Street Journal (B13)
Author: Jon G. Auerbach
Issue: Info Tech
Description: Open Market, a software developer company, is going to
release technology to create and send digital coupons. This may help
Internet marketers attract customers. The Blue Light Special has now come
online because Internet sellers could have sales. PointCast and Disney's
online store plan to use the technology. Analysts warn that Internet sales
are still too weak to even need coupons.

Title: FCC Is Prepared to Reject SBC's Bid To Offer Long-Distance Phone Service
Source: Wall Street Journal (B13)
Author: Bryan Gruley
Issue: Phone Regulation
Description: FCC Staffers are ready to reject SBC's proposal to provide long
distance phone service in Oklahoma. The FCC is skeptical that SBC has
really opened its local market for competition. SBC argues that it has
deals with 16 rival phone companies in Oklahoma, including Brooks Fiber
Properties. "But FCC staffers are skeptical of those claims, partly because
Brooks has just four residential customers -- all Brooks employees taking
service on an experimental basis."

Title: TCI Is Closing Deals With Time Warner, Others to Shed Subscribers,
Slash Debt
Source: Wall Street Journal (B14)
Author: Mark Robichaux
Issue: Cable
Description: TCI is close to finishing a deal with Time Warner and other
companies that will let TCI take off 800,000 subscribers and $1.1 billion in
debt. TCI is going through a large restructuring phase. Head people at TCI
now feel that local is better and are trying to decentralize the big
company. There are plans to break the company's 14 million cable households
into groups of two to three million subscribers.

Title: Microsoft's Gates Plans $200 Million Gift to Libraries
Source: Washington Post (A1)
Author: Elizabeth Corcoran
Issue: Libraries/Philanthropy
Description: Bill Gates, chairman of Microsoft, and his wife, Melinda
French Gates, will announce today the creation of a foundation dedicated to
providing computers and Internet connections to the nation's public
libraries. Microsoft will supply $200 million of software to the foundation
to give away. The foundation will also focus on training and support for
library staff. Gates stated that his vision is that "people will take for
granted that you can walk into your local library, get the latest book and
sit-down at a computer." A former Microsoft executive, Patty Stonesifer,
will head the foundation. Philanthropist Andrew Carnegie's approach to
libraries appealed to Gates. Gates reflected that Carnegie said "Ok, books
are this empowering [thing] that people should have access to." Gates
believes that now the same should be true of personal computers. This
library initiative developed out of the smaller Libraries Online! project,
which provided $17 million in cash and software to public libraries. The
success of Libraries Online! -- many participating libraries reported that
people are waiting in line to use the computers -- inspired Gates. The
Federal Communications Commission also recently announced discounts for
libraries and schools to gain Internet access with the creation of a $2.25
billion per year fund.

Title: A Sporting Chance To Be No. 1
Source: Washington Post (C1)
Author: Paul Farhi and Leonard Shapiro
Issue: Media Mergers
Description: Rupert Murdoch's News Corp. is going to buy nine regional
cable sports channels and chunks of the New York Knicks, Rangers, Madison
Square Garden, and Mary Lou Retton (ok, not really Mary Lou) from Cablevision
Corporation. Then News Corp. and its partner, mongo cable company
Tele-Communications Inc., will have everything they need to create a
national sports cable network to challenge ESPN, which Murdoch has
apparently wanted to do for awhile. The new network will go by Fox Sports
Net and "will showcase national sports, as ESPN does now, but will also
maintain its regional flavor" by showing more local sporting events during
the day (West Bronx bridge players rejoice!). Murdoch and Malone of TCI
will have achieved a heretofore unseen amount of "vertical integration" --
"the ability to create programs and distribute them simultaneously." Don't
try this at home. News Corp. and TCI also recently partnered in a satellite
TV venture and News Corp. just bought some of the Family Channel, which TCI
owned a stake in. These types of corporate inbreeding "make a mockery of
[Washington's] efforts to impose public control over cable's market
dominance and monopoly pricing," stated Gene Kimmelman of the Consumers Union.

*********