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TELEVISION
Cable Rates Rising as Industry Nears End of Regulation (NYT)
Survey Shows Viewers Want Interactive HDTV Options (NYT)

INTERNET
Criteria Are Set for Applicants to Join Internet Name Registry (NYT)
What Hath Drudge Wrought? (NYT)
Company Trolls for Scuttlebutt on the Internet (NYT)
Internet Retailers Work to Turn Shoppers Into Buyers (NYT)
Firm Gives Web Artists A Paid Forum (SJ Merc)
Britain Unveils New Legal Framework For E-Commerce (SJ Merc)

TELEPHONY
AT&T's Embrace of New Technology Signals Next Era (NYT)
In Phones, The New Number Is Four (WSJ)

PRIVACY
Microsoft to Rid Windows of Tracking Numbers (WP)
Tales From the Crypto, Without an End in Sight (WP)

TELEVISION

CABLE RATES RISING AS INDUSTRY NEARS END OF REGULATION
Issue: Cable
"We may now be facing the worst of all worlds, which is an unregulated
monopoly," said John McCain (R-AZ), head of the Senate Committee on
Commerce, Science and Transportation. In theory, the cable industry would
have faced enough competition by now from satellite providers and telephone
companies. But with the sunset of cable regulation approaching this month,
consumers have seen cable rates increase 22% since passage of the Telecom
Act of 1996 (4x the rate of inflation) and they should expect additional
increases (averaging 5%) after March 31. Cable executives claim the
increases are due to the sky rocketing cost of programming and investments
they have made to upgrade their systems. But consumer groups dispute these
claims: said Gene Kimmelman, a co-director of the Washington office of
Consumers Union, "In those few areas where there has been competition, cable
companies charge 10 to 15 percent less than where there's a monopoly to
provide the exact same quality programming. And government data show cable
rates going up twice as fast as programming cost increases." Billy Tauzin
(R-LA) who is chairman of the House Subcommittee on Telecommunications,
Trade and Consumer Protection, said, "It's a date that's arising somewhat
prematurely in terms of competitive opportunities for consumers, and that's
troublesome for a lot of folks, me included."
[SOURCE: New York Times (A1), AUTHOR: Stephen Labaton]
http://www.nytimes.com/yr/mo/day/news/financial/cable-tv-deregulate.html

SURVEY SHOWS VIEWERS WANT INTERACTIVE HDTV OPTIONS
Issue: Digital TV
Survey says..."I want my interactive TV." That's what consumer electronics
executives heard from their trade group. The television industry has bet the
farm on high definition television (HDTV) making it the most important new
product they have offered in 50 years. Some manufacturers are even paying
television stations to broadcast HDTV programming. But results from focus
groups assembled by the Consumer Electronics Manufacturers Association show
that consumers don't just want prettier pictures -- they want interactive
services as well. "People want a high-quality picture and data at the same
time, and they want us to figure out how to do it," Todd Thibodeaux, a vice
president with the manufacturers' association, said in his presentation of
the findings. HDTV sets on the market now cost $3,000 - $12,000. About
20,000 have been sold. But they do not have the interactive data capacities
that consumers may want. Executives are calling it a "2nd generation"
feature. Of the three options digital technology makes available to
broadcasters, consumers seemed least interested in multicasting.
[SOURCE: New York Times (C1), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/99/03/biztech/articles/08hdtv.html

INTERNET

CRITERIA ARE SET FOR APPLICANTS TO JOIN INTERNET NAME REGISTRY
Issue: Internet Regulation
Starting a week from today, companies may begin to compete with Network
Solutions in registering Internet domain names. Accreditation guidelines are
among the first decisions made by Internet Corporation for Assigned Names
and Numbers (Icann). "We made some major progress toward creating a truly
competitive environment in the .com, .net and .org domain-naming system,"
said Esther Dyson, chair of Icann's board. "We also showed the consensus
process in operation by changing our initial proposals to reflect the
community's feedback." Icann's goal is to have five competitors in the
domain name business by May 1 -- two months later, Icann hopes to let an
unlimited number of companies compete around the world.
[SOURCE: New York Times (C6), AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/99/03/biztech/articles/08net.html

WHAT HATH DRUDGE WROUGHT?
Issue: Internet Content/Journalism
"Drudge may have started it, but there are many more Drudges out there, and
more to come." A posting to Capitol Hill Blue www.capitolhillblue.com was
picked up by The Hotline, a respected electronic tip sheet that's an
offshoot of The National Journal, and journalists from broadcast, US News &
World Report and several newspapers. The case is another example of how
online-only publications are affecting mainstream journalism. Barringer
gives a look at the who behind Capitol Hill Blue and Free Republic.
[SOURCE: New York Times (C10), AUTHOR: Felicity Barringer]
http://www.nytimes.com/library/tech/99/03/biztech/articles/08web.html

COMPANY TROLLS FOR SCUTTLEBUTT ON THE INTERNET
Issue: Internet Content
Ewatch has taken the work of traditional clipping services and adopted it to
the Internet. The company searches listservs and chat rooms and discussion
forums looking for rumors etc about corporate clients. For example, after
the verdict in the OJ Simpson trial, there was a rumor -- reported that Mrs
Fields Cookies had sponsored a party for the jurors. Cookie sales dropped.
Ewatch found the places on the Internet that the rumor was being discussed
and posted corrections. Cookie sales then jumped back up. [Heavy Internet
users *love* cookies, BTW] The service costs $130,000/year and Ewatch hopes
to expand the service. One day, they hope to offer a service that allows an
executive to type a natural language question like "Why are sales lagging in
Minnesota? and receive reports about marketing, media and mendacity that
might help explain the problem.
[SOURCE: New York Times (C4), AUTHOR: Matt Richtel]
http://www.nytimes.com/library/tech/99/03/biztech/articles/08grim.html

INTERNET RETAILERS WORK TO TURN SHOPPERS INTO BUYERS
Issue: E-Commerce
Having problems with follow through while shopping online? Internet
retailers are discovering that up to two-thirds of purchases begun on the
Internet are dropped before they are completed. Some executives believe that
it's because consumers are still getting used to shopping online, that they
are really just browsing, or that they are hesitant to share personal
information over the Internet. But Ken Casser, an e-commerce analyst at
Jupiter Communications, believes the problem is shipping and handling costs
which are often not disclosed until late in the buying process: "It's
sticker shock. A lot of people just aren't willing to pay what is
essentially a 30 to 40 percent markup." In any event, e-retailers are trying
to devise ways to make a consumer's purchase decision as slippery as
possible. Excite, for example, allows users to enter their credit card
number once and shop at a number of vendors with the network.
[SOURCE: New York Times (C4), AUTHOR: Bob Tedeschi]
http://www.nytimes.com/library/tech/99/03/cyber/commerce/08commerce.html
See also
Internet Concern Plans System for Small Online Transactions
[SOURCE: New York Times (C8), AUTHOR: John Markoff]
http://www.nytimes.com/library/tech/99/03/biztech/articles/08gold.html

FIRM GIVES WEB ARTISTS A PAID FORUM
Issue: Intellectual Property
Cybergold takes a huge step forward today toward realizing a long-held goal
of content producers everywhere: a Web marketplace for intellectual
property. Cybergold is debuting a system that will let artists post their
works online and charge users a small fee to download them. They even have a
way for consumers to buy such products without shelling out any cash.
Cybergold in partnership with 19 online vendors of books, music,
photography, software and other goods and services will work on the payment
system permitting content producers to focus on the creative side of the
business. Cybergold will assume all the administrative and financial details
of collecting money from consumers. The company hopes to gain from both
sides of the equation, by taking a 10 to 20% share of revenues from its
creative partners and also profiting from the sale of advertising.
Meanwhile Qpass went live Tuesday with its own solution to the problem.
Qpass plans to allow people to post content online and set their own price
for it. Cornelius Willis of Qpass said the company hopes to have dozens of
content providers by 2000 and thousands by 2001.
[SOURCE: San Jose Mercury News, AUTHOR: Stephen Buel]
http://www.mercurycenter.com/svtech/news/indepth/docs/cyber030899.htm

BRITAIN UNVEILS NEW LEGAL FRAMEWORK FOR E-COMMERCE
Issue: Electronic Commerce
British Trade Secretary Stephen Byers has introduced a consultation document
intended to give Britain the most attractive legal framework in the world
for doing economic business. The document "Building Confidence in Electronic
Commerce" offers the first glimpse at government plans. The British
government intends to introduce legislation in Parliament in April in hopes
of passing new laws later in the year. Byers said that the proposed
legislation "will start removing the legal barriers to using electronic
means, instead of pens and paper. It will also enhance confidence in the
technologies which people can use to ensure that others cannot read their
credit card data when shopping online and businesses can ensure that
sensitive information is not being read by competitors."
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
http://www.mercurycenter.com/svtech/news/breaking/internet/docs/214544l.htm

TELEPHONY

AT&T'S EMBRACE OF NEW TECHNOLOGY SIGNALS NEXT ERA
Issue: Infrastructure
Perhaps lost in last week's headlines was an announcement from AT&T that it
would no longer invest in traditional telephone switches for its core
network. With its large influence on the market, AT&T's decision may mean
that the aging and crowded phone network may be rejuvenated with younger,
more efficient technology. For consumers the move could mean lower prices
and new services and features. "As the functionality moves closer and closer
to the customer, the bottom line for the consumer is that clearly we will
drive the economics down," said Neil J. Grenfell, an engineering vice
president at Sprint. "This can also help give the customer more and more
control and more and more integration." The heart of the switch is a move to
packet switching technology like that used by the Internet. Packet switching
is much more efficient than today's circuit switching system.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
http://www.nytimes.com/library/tech/99/03/biztech/articles/08phon.html
See also:
Data networks: new weapon in phone competition
[SOURCE: Chicago Tribune (Sec4, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-24548,00.html

IN PHONES, THE NEW NUMBER IS FOUR
Issue: Mergers
Recent trends in phone companies has led to basically four parts of an
"oligopoly": AT&T/TCI, Bell Atlantic/GTE, SBC/Ameritech, and MCI WorldCom.
These "megacarriers" are battling for the best customers and some communities
may be left behind, Mehta reports. Wireless service is especially exclusionary,
as companies are not obligated to serve everyone and can deny people with bad
credit. AT&T has led the way with its pending merger with TCI, which it plans
to use to bypass Baby Bells and offer local phone service and Internet access.
Other wireless companies are trying to keep up with AT&T's flat-rate nationwide
calling plan. Currently, SBC, based in San Antonio, is waiting to hear from
regulators that would allow it buy Ameritech, extending its reach into the
Midwest. Reed Hunt, former chairman of the Federal Communication Commission,
says the big four is sparking competition and consumers will benefit: "There
will be multiple national carriers, a handful of local regional operators and
great variety and tremendous creativity in marketing." But Royce S. Caldwell,
President of SBC, admits rural homes, low-spending phone users and small
business are customers that "nobody wants to serve." For example, Mayor Fred
Peralta of Taos (NM) says that companies will not spend millions to provide
service to just a handful of customers in rural towns. But William Barr, of
GTE's general counsel says competition is hurt by federal subsidies. It is
impossible for non-subsidized companies to compete in rural areas where firms
are receiving federal funds to serve residents, he says.
[SOURCE: Wall Street Journal (B1), AUTHOR: Stephanie N. Mehta ]
http://wsj.com/

PRIVACY

MICROSOFT TO RID WINDOWS OF TRACKING NUMBERS
Issue: Privacy
Richard M. Smith, a computer programmer, compares it to a Social Security
number being stamped on every document a person creates on a computer
operating with the Microsoft Windows 98 operating system. "It" is a unique
32-digit serial number that is generated in the latest version of Windows
and planted within electronic documents. It could be used to trace the
author's identity. Microsoft officials said they are investigating whether
the company is collecting the serial numbers from customers even if they
explicitly indicate they didn't want them disclosed. "If it is, it's just a
bug," said Robert Bennett, Microsoft's group product manager for Windows.
"If it is indeed happening, we'll absolutely fix that." Bennett said
Microsoft will create a software tool to let customers remove the Windows
number, which he said is meant to help diagnose problems for customers who
call with technical problems. Privacy activist Jason Catlett of Junkbusters
said, "This is going to be a cleanup job larger than the Exxon Valdez oil
spill." [Bug...or feature?]
[SOURCE: Washington Post (A8), AUTHOR: Ted Bridis (Associated Press)]
http://www.washingtonpost.com/wp-srv/business/feed/biztop920897272397.htm

TALES FROM THE CRYPTO, WITHOUT AN END IN SIGHT
Issue: Encryption
John Schwartz explains the latest round on the US battle over encryption.
"Encryption? It might seem arcane, that technology for scrambling secret
data and communications so that only the intended users can read them. But
it's anything but dull: Crypto sits at the center of a massive global
struggle that should resonate with anyone who cares about privacy, national
security and the extent to which government is able to peer into our lives."
The new round in the fight is centered on the recent reintroduction of the
Security and Freedom through Encryption Act (SAFE), sponsored by Reps.
Robert W. Goodlatte (R-VA) and Zoe Lofgren (D-CA). That bill, which has 200
co-sponsors, would greatly limit the government's power to restrict
encryption use or export. It's a response to attempts by the Clinton
administration to slow or stop the spread of strong crypto through export
controls and to move toward a system in which it would be illegal to sell
encryption software that law enforcement officers working under court
authority can't break. The bill is available at
http://thomas.loc.gov/cgi-bin/query/z?c106:H.R.850.IH:.
[SOURCE: Washington Post (F28), AUTHOR: John Schwartz]
http://www.washingtonpost.com/wp-srv/business/feed/biztop920897289648.htm

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TELECOMMUNICATIONS
Speech: Defining Government's Role in the
New Telecommunications Landscape (NTIA)

TELEVISION
Tailoring Local TV to Local Tastes (WP)

INTERNET
The Media Gets a Message (WP)
Cheaper or Free Internet Entry Seen (WP)
For Neighborhoods in Many Cities, Virtual Community Centers (NYT)
For Teen-Agers, a New Forum for Frank Talk About Sex (CyberTimes)
Whales in the Minnesota River? (NYT)
The Web Finds Long-Lost Ancestors (WSJ)
Peru Expedition Broadcast on Web (SJ Merc)

TELEPHONY
Bell Atlantic Adds a 24-Cent Charge (WP)

ANTITRUST
Microsoft Peers Urge Restructuring It Firm Loses Trial (WSJ)

TELECOMMUNICATIONS

SPEECH: DEFINING GOVERNMENT'S ROLE IN THE NEW TELECOMMUNICATIONS LANDSCAPE
Issue: Telecommunications
Larry Irving's remarks at the Third Annual Florida Communications Policy
Symposium: "We have been exploring whether the Act has, in fact, changed the
telecommunications landscape, and whether consumers have been affected by
these changes. Three years after the Act's passage, it looks as though the
ball is finally now in play. The telecommunications field is changing, and
Americans are beginning to feel its benefits. With these developments, state
and federal governments will need to play new roles." Mr. Irving addresses
The Changing Paradigms in Telecommunications, The New Challenges for State
and Federal Government, Meeting the Challenges through Partnership, and
Coordinating Efforts to Connect Communities. He concludes: "We know that
it's important to connect communities so that they can get health care
information. We know the excitement of schoolchildren when they see
real-life depictions of the pyramids. We know that new technologies are
about the ability to participate directly in a political poll or discussion,
at the click of a mouse. None of these are part of electronic commerce or
included in our GDP, but every one is reason why should be excited about the
Information Revolution and what we are doing here today. These are the
developments that go to the core of what makes America truly great."
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/speeches/fla21899.htm

TELEVISION

TAILORING LOCAL TV TO LOCAL TASTES
Issue: Television
WAMI (pronounced "whammy") is changing television in Miami and hopes to
change television around the country. Channel 69 is the prototype for a new
kind of station which seeks to put local back in TV. TV mogul Barry Diller
is behind the experiment and is prepared to put similar programming on a
nationwide string of stations. To counter TV's nationalization trend, Diller
set up WAMI last June as a research and development laboratory for his
company, USA Networks, which operates 12 local TV stations nationwide along
with the Home Shopping Network and cable's USA Network and Sci-Fi Channel.
WAMI is a ratings laggard and presently is losing money, but its owner
appears not to care. It is, he contends, the future. Although the viewer
sees M*A*S*H and Roseanne reruns, and the ballgames of the Miami Heat and
Florida Marlins, the station produces much of its programming, including
normal evening newscasts, a quirky children's show, two nightly news
magazines, a local sports highlight program, a late night newscast that
features the news read by talking lips and "Ocean Drive," a program that
scans the street and Miami Beach for scantily clad persons. Attitude infects
even the commercials that run on WAMI with some being done live from the
office of the advertisers.
[SOURCE: Washington Post (A1), AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-srv/style/tv/features/localtv0304.htm

INTERNET

THE MEDIA GETS A MESSAGE
Issue: New Media vs. Old Media
New media has old media on the run. Both worlds convened in New York last
week to talk about the Internet. One conclusion is that print media is still
slow to grasp the Internet's action-oriented nature. Senior people from
magazines, newspapers and TV defended their Internet strategies. Yet their
vision lacked the sparkle of speeches from people running pure Internet
companies. And it didn't help that speaker after speaker trotted out Web
traffic data showing sites run by old-line media companies trailing those of
pure Internet firms. By 2002, Jupiter Communications analysts say, the
number of American households using the Internet will eclipse those taking a
newspaper. More than half of heavy Internet users report watching less TV;
one in four say they have reduced the time they spend with magazines. Major
media companies are arguing internally about whether to spin off their
new-media units and sell stock to the public. Writer Leslie Walker
concludes, "I hope they pour every dime into interactive tools and services
that allow users to transform the Internet's static text and images into a
dynamic experience. Because one of the hardest lessons for traditional
companies to learn about new media is that it is fundamentally more about
other people's content than their own."
[SOURCE: Washington Post (E1), AUTHOR: Leslie Walker]
http://www.washingtonpost.com/wp-srv/business/feed/biztop920550942907.htm

CHEAPER OR FREE INTERNET ENTRY SEEN
Issue: Internet
Following Great Britain's success with free Internet access, the US may not
be far behind. Freeserve, which began operating in September in Britain and
has already surpassed America Online as that country's most popular Internet
access provider, allows customers to dial up for free. That same spirit
seems to be crossing the Atlantic. NetZero has signed up 400,000 customers
since it launched a free service in October. NetZero is led by a group of
venture capitalists that have already created one stampede by giving away
advertisement-rigged computers. Gateway announced last week that it would
throw in a free year of Internet service with any computer purchase of more
that $1,000. A company named Freewwweb.com advertises "free Internet access"
but its interpretation of the term may be different from that of the typical
customer. The company requires a one-time fee of $120, but it does offer
local dial-up numbers across most of the country. Another service,
webCOMBO, charges a one time fee of $149.95 for otherwise free access to its
national network. Others such as zDial, FreePPP and FreeI charge nothing but
only have dial-up numbers in a specific region. These companies make their
money by the advertising displayed on the screens. Concerned observers
suggest that these companies may offer little or no customer support and
subscribers run the risk that the service might suddenly vanish (along with
the user's e-mail address).
[SOURCE: Washington Post (Online), AUTHOR: Bruce Meyerson (Associated Press)]
http://search.washingtonpost.com/wp-srv/WAPO/19990304/V000200-030499-idx...

FOR NEIGHBORHOODS IN MANY CITIES, VIRTUAL COMMUNITY CENTERS
Issue: Community Networks
More and more people are turning to the World Wide Web to find out what's
happening down the block. E.Central, a Denver based company, is taking
advantage of the growing trend of community websites maintained by
neighborhood groups and other community organizations. Nonprofit community
networks, or freenets, have long provided community groups with free sites.
Differing from these nonprofit projects, E.Centeral intends to make money by
selling advertising on their Neighborhood Link site. They report that 285
neighborhood associations in Denver have been using their site to post
notices, newsletters, and hold interactive discussions. AT&T and Conoco oil
company have agreed to pay $30,000 for a year worth of advertisements on the
site. The city of Denver is very supportive of the project, which they see
as a means for "revolutionizing the way neighborhoods and organizations can
communicate with the community and with themselves," according to Andrew
Hudson, a spokesman for the Mayor Wellington E. Webb.
[SOURCE: New York Times (E7), AUTHOR: William Long]
http://www.nytimes.com/library/tech/99/03/circuits/articles/04neig.html

FOR TEEN-AGERS, A NEW FORUM FOR FRANK TALK ABOUT SEX
Issue: Internet
Planned Parenthood has launched a new website that provides young adults
with information about sex and birth control. Teenwire.com is a safe,
private place for teen to ask questions and get information, say the site's
creators. The casual and frank tone of the site, which is intended to put
teens at ease, has drawn criticism from some corners. "It looks like a Web
site drafted by kids without any adult supervision, what na

EDTECH
Clinton Says All Classrooms Will Be Wired by 2000 (CyberTimes)
Safe Children's Sites Honored By Cyber-Watch Group (SJ Merc)

INTERNET
More Original Content Found on Web (WP)
Internet Sellers Work To Allay Fears Of Retail Outlets (CyberTimes)
PC Matinee: The Race Is On to Make Web A Cyber-Cinema (WSJ)
AT&T, Motorola And Lucent In Pact On Internet Access (WSJ)

TELEVISION
Children's TV Market May Be Played Out (B&C)
FCC Proposes Upgrading LPTV (B&C)

TELEPHONE
Concessions Sought in SBC Deal for Ameritech (WP)
Virginia Regulators Seek Conditions on Phone Deal (WP)

ADVERTISING
Gore Pushes Code to Combat Ad Bias (B&C)
Hangover Over Alcohol Ads (B&C)
White House Unveils Healthy Dose of PSA's(B&C)

EDTECH

CLINTON SAYS ALL CLASSROOMS WILL BE WIRED BY 2000
Issue: EdTech
More than half of all American classrooms are connected to the Internet,
President Clinton announced on Monday. He pledged to have 100% of the
nations public classrooms connected by the year 2000. The latest wave of
federal subsidies for educational technology, the E-rate discounts, were
announced over the weekend. The program, which has now committed $1.66
billion in aid to schools around the nation, is under attack from Republican
leaders who would like to see major cut backs or elimination of technology
funding to schools and libraries. To illustrate the benefits of the
program, California school teacher Susan Tesada spoke of the impact that
Internet access has had on her students. "They have the opportunity to see
something outside the three-blocks of their neighborhood ... something past
turning on the TV," she said. "They can see places that they'd never get to
see unless education opens up the door and motivates them - and it is."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/99/03/cyber/articles/02erate.html

SAFE CHILDREN'S SITES HONORED BY CYBER-WATCH GROUP
Issue: Ed Tech
The Web can be good for both parents and kids. In that spirit Cyberangels
http://www.cyberangels.org, an all-volunteer Internet watch group, on
Monday honored four Web sites for children for their interactivity,
appropriate advertising practices, comprehensive privacy policies and
entertainment and educational value. The four inaugural Cyberangels Kids
Best of the Web Awards went to: 1) Curiocity's FreeZone
http://freezone.com; 2) Sports Illustrated for Kids http://sikids.com;
3) Nickelodeon Online http://www.nickelodeon.com; and 4) Bonus.com
http://www.bonus.com. Youngsters nominated sites, CyberMoms narrowed the
nominees and the executive director of Cyberangels made the final
selections. The group also named a Cyberangel of the Year: Elizabeth
Lascoutx, director of the Children's Advertising Review Group
http://www.caru.org.
[SOURCE: San Jose Mercury News, AUTHOR: Jonathan Oatis (Reuters)]
http://www.mercurycenter.com/svtech/news/breaking/internet/docs/195287l.htm

INTERNET

MORE ORIGINAL CONTENT FOUND ON WEB
Issue: Content
Original content is growing on the Web at many newspaper and magazine sites.
Steve Ross, a professor at Columbia University's Graduate School of
Journalism, conducted the survey with a New York public relations firm. The
survey found that 58% of newspapers and magazines had a website and
31% of those used original material for at least half their online
content, more than four times the number of publications that did so in
1996. Ross sees the print media's shift toward the Internet as use of a
unique medium rather than use of an alternate distribution system. He also
learned that only 18% of the publications routinely let their Web
sites scoop their printed editions and that 62% prohibited it. The
survey included 1,420 daily newspapers and 2,000 magazines and is available at
http://www.mediasource.com.
[SOURCE: Washington Post (Online), AUTHOR: Chris Allbritton (Associated Press)]
http://search.washingtonpost.com/wp-srv/WAPO/19990301/V000470-030199-idx...

INTERNET SELLERS WORK TO ALLAY FEARS OF RETAIL OUTLETS
Issue: E-commerce
While companies are rushing to the Internet to hawk their wares, many are
learning that it is hard not to alienate their brick-and-mortar retailers as
they peruse cyber profits. With the price advantage that Internet-only
retailers can offer, many real-world dealers are feeling like they do all
the work, while Internet retailers rake in all the profits. Since, for most
companies, Internet sales only represent a small portion of annual revenues,
manufactures fear the undercutting of their brick-and-mortar merchants. As
companies grapple with the question of whether the Web can actually expand
the size of their market, or just slice it into smaller pieces, they will
walk a tightrope of trying to appease traditional retailers, while competing
in the digital age.
[SOURCE: CyberTimes, AUTHOR: Bob Tedeschi]
http://www.nytimes.com/library/tech/99/03/cyber/commerce/02commerce.html

PC MATINEE: THE RACE IS ON TO MAKE WEB A CYBER-CINEMA
Issue: Internet/Publishing
Hollywood will have to scramble to catch up with websites that show movies.
Three are
at least three -- ifilm.net deputed last week, featuring independent films;
Trimark, a Santa Monica film producer, has announced licensing its library
to Broadcast.com; and atomfilms.com is devoted to short films and animation.
Although the picture is not great -- nothing like the
experience of sitting in a theater -- Mark Cuban, president of
Broadcast.com, says
it's the access and content issue that matters: "The real point is that the
Net isn't a print medium anymore, and the personal computer is becoming an
entertainment device." The quality of the Web movie will only improve with
the advances in digital media, Shapiro reports. Atomfilms.com executives say
that with the current quality and constraints of the Internet, short films
are "the perfect content for the medium as it exists right now." While these
sites are
legal, Cyveillance, an Alexandria, VA firm specializing in scanning the
Internet for illegal uses of copyrighted material, is looking out for the
stuff that's not. They found a website illegally showing "Saving Private
Ryan," created by someone who had videotaped it in the theater [Oh, imagine
the quality -- a videotape of the film run over the Internet -- that's the
home theater of the future, baby]. A Dreamworks executive, the co-producer
of the film, says they will take "whatever measures necessary" to protect
their copyrighted material. Robert Daly, co-chairman of Time Warner says the
entertainment industry is consumed with figuring out how to deliver music
safely on the Internet and has not moved into distributing video.
[SOURCE: Wall Street Journal (B1), AUTHOR: Eben Shapiro ]
http://wsj.com/

AT&T, MOTOROLA AND LUCENT IN PACT ON INTERNET ACCESS
Issue: Internet
A computer may not be necessary to access the Internet. AT&T, Lucent and
Motorola
will announce cooperation on a software language called, VXML that would allow
voice-activated access to the Internet. The companies have been
working separately for several years on the software, spearheaded by a group
working in Bell Labs, the AT&T unit that split off into Lucent, Hardy reports.
If Internet service providers or phone companies install voice-recognition
equipment onto Internet computers, VXML would allow a user to pick up the phone
and receive information from the Internet. Neither the user nor the writer of
the software would need to have voice-recognition equipment, says Bill Meisel,
president of TMA Associates, a speech-recognition consulting and marketing
firm. VXML is deliberately named after HTML, or hypertext markup language --
the widely accessible method of programming information on the Internet --
Hardy reports.
[SOURCE: Wall Street Journal (B6), AUTHOR: Quentin Hardy]
http://wsj.com/

TELEPHONY

CONCESSIONS SOUGHT IN SBC DEAL FOR AMERITECH
Issue: Mergers
Long distance companies and consumer groups argue that the proposed SBC-
Ameritech merger will mean that the combined company will continue to freeze
out
competition from its 57 million local phone lines. Sprint, AT&T, MCI Worldcom
and others make their argument in hopes to persuade federal regulators to
extract larger concessions from the combined company even if it many not
block the merger outright. The so-called "big footprint" antitrust theory
has not been tested in court and has not been the grounds for blocking any
merger. Former FCC chief economist Michael Katz said, "The bigger the
footprint they have, the more they can take advantage of that ability to
hurt others." Katz and other opponents say the big footprint theory carries
more weight than in the past because of all the consolidation in the
industry. "It's a total non-issue," said Ameritech chief executive Richard
Notebaert who believes companies need a big footprint to survive. Bob
Harris, an economist working for SBC, said SBC would be on its best behavior
because it wants regulatory approval to get into the long-distance business.
Last week the staff of the Illinois Commerce Commission produced a report
strongly opposing the merger, partly on the big footprint theory.
[SOURCE: Washington Post (E1), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/business/daily/march99/merger2.htm

VIRGINIA REGULATORS SEEK CONDITIONS ON PHONE DEAL
Issue: Mergers
Virginia regulators are considering several conditions for accepting the
merger of Bell Atlantic and GTE, both of which offer local
telephone service in the state. The State Corporation Commission staff is
recommending that a cap on Bell Atlantic's basic phone rates that expires in
2001 be extended to 2009 "to mitigate any anti-competitive effect of the
merger." Their recommendations also request that Virginia phone customers be
allowed to share in any savings from the merger, that rates in GTE's
southwest Virginia operating territory be reduced, that caller-ID and
call-waiting be available for all GTE customers, and that the companies
expand local calling areas. Virginia regulators will vote on the merger
later this month.
[SOURCE: Washington Post (Online), AUTHOR: Reuters]
http://www.washingtonpost.com/wp-srv/business/daily/march99/phone1.htm

TELEVISION

CHILDREN'S TV MARKET MAY BE PLAYED OUT
Advertisers spent more than $1 billion to catch the attention of children in
1998. Will they send that much in 1999? Maybe. Several factors could effect
advertisers spending on children's TV. Both toy makers and cereal companies,
the biggest spenders on kid's TV, have a hard year, and are buying fewer
ads. Also impacting kids programming is the declining viewership among
children ages 2-11, which has dropped 3% in the past decade. Kids viewing
has also shifted from broadcast stations to cable, where it is much more
difficult to have aggregate reach. "Kids' viewing has become the most
fragmented of any demographic," says Brad Adgate of Horizon Media. It
raises the question, can TV effectively reach kids?"
[SOURCE: Broadcasting&Cable (p.20), AUTHOR: Steve McClellan and Richard
Tedesco]
http://www.broadcastingcable.com/

FCC PROPOSES UPGRADING LPTV
Issue: Television
The Federal Communications Commission is expected to propose within two
weeks that low power television stations be granted status as primary TV
licensees. The FCC proposal is expected to be based on a March 1997 request
by the Community Broadcasters Association, the primary organization for LPTV
stations. If approved the action would prevent LPTV station from being
displaced from their channels by full-power outlets that want to broadcast
on the same frequency. The action is expected to continue Chairman William
Kennard's campaign to open the airwaves and protect LPTV stations since they
include significant numbers of foreign language, religious, and educational
stations. Peter Tannenwald, CBA's Washington attorney, believes between 200
and 700 of the more than 2,000 LPTV stations would qualify for the new
classification helping those stations draw investors. The National
Association of Broadcasters, on the other hand, says the switch to digital
signals will be threatened if full-power stations don't have the flexibility
to push some LPTV operators to other frequencies. The Association for
Maximum Service Television also opposes the LPTV plan because of the digital
rollout. Capitol Hill has some support for LPTV; two representatives have
introduced a bill to grant many LPTV stations primary status and House
Telecommunications Subcommittee Chairman Billy Tauzin (R-LA) has promised to
hold hearings on the plan this year.
[SOURCE: Broadcasting&Cable (p.19), AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/

ADVERTISING

GORE PUSHES CODE TO COMBAT AD BIAS
Issue: Advertising
"We must ensure that our airwaves provide opportunities for all Americans,
and both reflect and respect the full diversity of the country they serve,"
Vice President Albert Gore said last week to the American Advertising
Federation. He urged the advertising industry to develop a code of conduct
that would discourage companies from discriminating against media owned by
or targeted to minorities. A recent FCC study shows that minority-owned and
targeted radio stations earn less revenue per listener than majority-owned
outlets. VP Gore said he was encouraged by the AAF's board of directors
establishment of a task force to determine whether a voluntary code of
conduct is feasible. The AAF is taking a "wait and see" attitude on the
idea of a code for now. The Federal Communications Commission, Federal
Trade Commission, Department of Justice, Department of Commerce and Small
Business Administration will form a joint working group to examine ad
practices and their impact on minority broadcasters and ad agencies. FCC
Chairman William Kennard has also promised to include a new section in the
agency's annual radio report examining small and minority-owned stations.
[SOURCE: Broadcasting&Cable (p.18), AUTHOR: Bill McConnell & Paige Albiniak]
http://www.broadcastingcable.com/

HANGOVER OVER ALCOHOL ADS
Issue: Advertising
"Alcohol is alcohol is alcohol," says Judy Blatman, spokeswoman of the
Distilled Spirits Council of the US, the industry group that has not yet
decided whether to launch its new liquor campaign slotted for late-night cable
TV. The decision comes in the face of pending legislation. The Treasury
Department has called for a law that would require ads to carry warnings about
the risks of drinking alcohol. The Federal Trade Commission is expected to
distribute a report that criticizes alcohol marketing to teens. Local
broadcasters say the warning labels would send ad revenues to cable channels
and other media such as print and billboards, and threaten local sports
programming. Senator Strom Thurmond (R-SC) -- who pushed legislation requiring
warning labels on alcoholic products in 1989 -- is a strange opponent of the
legislation. McConnell and Albiniak report that he is upset with the Treasury
Department's Feb. 5 ruling that allowed two wine makers to taut the health
benefits of drinking wine. Thus, he refuses to support the ad warning
legislation. Industry groups say they are doing ok regulating themselves.
Gladys Horiuchi, The Wine Institute spokeswoman says their code says no,
"athletes, cartoon characters, or rock stars" in their ads to prevent targeting
kids.
[SOURCE: Broadcast and Cable (14), AUTHOR: Bill McConnell and Paige Albiniak]
http://www.broadcastingcable.com/

WHITE HOUSE UNVEILS HEALTHY DOSE OF PSA'S
Issue: Advertising
The White House has just launched a high profile media campaign aimed at
promoting free health care initiatives for uninsured children. Broadcasters
and cable operators have joined with the administration in an effort to
inform parents of Medicare and other free health care programs for their
children. Several networks and station groups have agreed to air Public
Service Announcements as part of the multi-media campaign. Although CBS
plans to participate in the PSA campaign, they were not present at the White
House's campaign launch. Both CBS and Fox stayed away from the event to
protest the Administration's position on broadcast ownership deregulation.
[SOURCE: Broadcasting&Cable (p.17), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/

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INTERNET/INFOTECH
FCC Rules Dialing Web Is Long Distance (WSJ)
Gateway Plans to Offer Free Net Service (NYT)
Caveat Emptor on the Web: Ad and Editorial Lines Blur (NYT)
Read All About IT -- by the Roadside (WP)
Ruling Blocks Abortion Foes On Web Site (WP)
Reader's Digest To Boost Internet, Health Roles (WSJ)
Job Kiosk a High-Tech Search Tool (ChiTrib)

ENCRYPTION
Lawmakers Renew Encryption Battle (CyberTimes)

MERGERS
SBC Says ICC Staff Report is Distorted (ChiTrib)
Eye-Popping, Half-Cocked Idea Makes Point (ChiTrib)

TELEPHONE REGULATION
FCC Releases Audit Reports on RBOCs' Property Records (FCC)
U.S. House Passes Cellphone Privacy Act (SJ Merc)
Cuba Fails To Halt Phone Service from US as Firms Reroute Calls (WSJ)
Deutsche Telekom, Phone Home (NYT)

SATELLITE
Judge Rules Against DirecTV (WP)

CAMPAIGN FINANCE
Slight Shift on Campaign Finance Reform (WP)

ANTITRUST
FTC Chairman Urges Caution on Tech Breakups (WP)

INTERNET

FCC RULES DIALING WEB IS LONG DISTANCE
Issue: Internet
The Federal Communications Commission ruled yesterday that connecting to the
Internet is a long-distance call, not a local one. FCC Chairman Bill Kennard
said this is not an attempt to regulate the Internet. The FCC's Larry
Strickling said, "This won't change how consumers access the
Internet or what they pay." What it will change is the relationship between
Baby Bells and independent phone companies. Many Internet service providers
contract with independent phone companies. The Baby Bells must then pay the
independents for routing calls onto the Internet. By defining an Internet
dial-up as a long distance call, the FCC is saying the independent phone
companies no longer have jurisdiction and therefore don't get paid. However,
existing agreements with local independents will be enforced, said John
Windhausen Jr., president of the Association for Local Telecommunications
Services. FCC Commissioner Harold Furchtgott-Roth abstained from the vote,
arguing that labeling an Internet call long-distance means it should be charged
to the customer as such. Some consumer groups are worried that price hikes may
result from the ruling. Scott Cleland, managing director of Legg Mason
Precursor Group says the opposite is true: "by opening the door to
negotiations, the FCC is trying to force Baby Bells and independents to reduce
rates for Internet and voice calls."
[SOURCE: Wall Street Journal (B3), AUTHOR: Kathy Chen]
http://wsj.com/
See also:
FCC RULES INTERNET DIAL-UP CALLS ARE INTERSTATE CALLS
[SOURCE: New York Times (C3), AUTHOR: ASSOCIATED PRESS ]
http://www.nytimes.com/library/tech/99/02/biztech/articles/26access.html
FCC ADOPTS ORDER ADDRESSING DIAL-UP INTERNET TRAFFIC [SOURCE: News Release &
Statements ]
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9014.html
FCC EFFECTIVELY OVERTURNS STATE DECISIONS; OPENS DOOR FOR
INTERNET ACCESS CHARGES; FURCHTGOTT-ROTH DENIED COMMISSIONER RIGHTS
[SOURCE: Separate Press Release from the Office of Commissioner
Haroldfurchtgott-Roth]
http://www.fcc.gov/Speeches/Furchtgott_Roth/Statements/sthfr908.html
FEDERAL COMMUNICATIONS COMMISSION
[Source: Chicago Tribune Author: Associated Press]
http://chicagotribune.com/textversion/article/0,1492,SAV-9902260307,00.html

GATEWAY PLANS TO OFFER FREE NET SERVICE
Issue: Computers/Access
Gateway, the second largest direct seller of PCs, has plans to offer
customers one free year of Internet service. In explaining the motivation
for this move, Gateway's chief executive, Theodore W. Waitt, said "We talk
with more than 50,000 people every day and understand that most of them want
a computer so they can get on the Web." The deal will give consumers free
access the Internet for 150 hours each month. Additional time will be
charged at $1.50 per hour.
[SOURCE: New York Times (Online), AUTHOR: Bloomberg News]
http://www.nytimes.com/library/tech/99/02/biztech/articles/26gate.html

CAVEAT EMPTOR ON THE WEB: AD AND EDITORIAL LINES BLUR
Issue: Advertising
On the Internet, lines between advertising and content are not drawn as
clearly as they are in traditional media outlets. Advertisements are "woven
into the very fabric of the World Wide Web," observe Hansell and Harmon. The
site for Fox's series "Dawson's Creek", for example, has ads for Dep hair
products on the same page as a story about its characters getting their
hair done at Dep Dapeside Salon. While some Internet executives claim that
people don't care about, or even expect, editorial independence on the web,
other say that this attitude may hurt the industry in the long run. "People
still do not trust the Internet, and they are not ever going to if they feel
that the sites they go to are not being straight with them," says Richard
Gingras, the editor in chief of At Home Network.
[SOURCE: New York Times (A1), AUTHOR: Saul Hansell and Amy Harmon]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/26web.html

READ ALL ABOUT IT -- BY THE ROADSIDE
Issue: Advertising
While driving through the middle of California, the Post's Mark Leibovich
discovered high tech companies have discovered a low tech method of self
promotion and advertising: billboards. As Leibovich notes, "You don't need
to know the way to San Jose anymore. Just follow the really nerdy
billboards." An Avanti representative, whose company promotes itself on
billboards as "the very deep submicron leader," could not attribute any
sales to the billboards but said "they are a vital source of general
awareness for the company in this community." In case you are wondering,
here are how a few companies are promoting themselves: Acropolis -- Mission
Critical Computing Solutions, Frog -- Integration of Strategic Building,
Digital Media and Product Development, Apple -- Think Different, Lycos --
The Fastest Retriever in Cyberspace, Excite -- The Best Portal on the Web,
Novell -- The Quiet Revolution. [83 billboards in 65 miles? Mark, take a
week off. You've been working too hard. Go for a drive, no, better stay home.]
[SOURCE: Washington Post (E1), AUTHOR: Mark Leibovich]
http://www.washingtonpost.com/wp-srv/business/feed/biztop920030136893.htm

RULING BLOCKS ABORTION FOES ON WEB SITE
Issue: First Amendment
U.S. District Court Judge Robert E. Jones ruled Thursday that a website
called "The Nuremberg Files" will be banned from publishing "wanted" posters
and personal information on physicians who perform abortions. A federal jury
had agreed earlier this month to award $107 million to a group of doctors
who contended the purpose of the information was to create a "hit list" that
incited violence. The case has been view as an important test of speech
rights. In his decision yesterday Jones said the website is "a blatant and
illegal communication of true threats to kill." Attorneys for the 14
defendants in the case plan to appeal both the judge's and jury's rulings.
[SOURCE: Washington Post (A17), AUTHOR: Rene Sanchez]
http://www.washingtonpost.com/wp-srv/WPlate/1999-02/26/159l-022699-idx.html

READER'S DIGEST TO BOOST INTERNET, HEALTH ROLES
Issue: E-Commerce
Reader's Digest announced plans to invest $100 million into Internet sales and
services over the next two years. With its magazine database of 140 million
names of people over 50, the company will focus on marketing to this age group.
Products will be targeted toward five areas: "home, health, family, finance,
and faith," Reader's Digest chief executive, Thomas Ryder said. They are
seeking partnerships with financial institutions to offer a Reader's Digest
mutual fund and credit card. Ryder says they are already in discussions with
partners to start a direct-mail pharmaceutical and vitamin business. The
company is counting on faithful readers of Reader's Digest magazine, who are
fifty and older, to trust the name, Bounds reports.
[SOURCE: Wall Street Journal (B8), AUTHOR: Wendy Bounds]
http://wsj.com/

JOB KIOSK A HIGH-TECH SEARCH TOOL
Issue: Jobs/InfoTech
"We run the classified ads and phones just aren't ringing off the hook
anymore," said Linda Tucker, national Job Shop manager for Adecco, a
California employment agency. The solution -- an "ATM for jobs." Adecco
unveiled its Job Shop kiosk at a Chicago college campus yesterday. "Job
Shop will put ourselves out where the community is. We're taking our
recruiting net and throwing it out farther than anybody else. We're all
fishing in the same pond," said Ms. Tucker.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Michael Ko]
http://chicagotribune.com/textversion/article/0,1492,SAV-9902260357,00.html

ENCRYPTION

LAWMAKERS RENEW ENCRYPTION BATTLE
Issue: Encryption
Representatives Bob Goodlatte (R-VA) http://www.house.gov/goodlatte and
Zoe Lofgren (D-CA) http://www.house.gov/lofgren -- along with 205 other
sponsors -- have introduced the Security and Freedom through Encryption Act
(SAFE), a bill that would lift the Clinton Administration's export controls
on the data scrambling technology. "All the stars are aligned. We are going
to move this very quickly out of the House," said one of the bill's
supporters, Rep Thomas A. Davis III (R-VA) http://www.house.gov/tomdavis.
"This legislation I think now is about ready where we can move it forward,"
House Majority Leader Dick Armey (R-TX) http://www.house.gov/armey said.
"This has been I think a difficult juxtaposition, the interest of the
Internet against national security. We will resolve that." "While we always
welcome additions to the public discussions about encryption, the SAFE bill,
as we understand it, continues to have the same problems it had last year,"
said William A. Reinsch, undersecretary of commerce, who as head of the
Bureau of Export Administration http://www.bxa.doc.gov carries out the
Administration's encryption policies. "Instead of the balanced approach
between commerce, privacy, law enforcement and national security the
President is seeking, this bill seeks to tilt the balance in favor of
commerce and privacy. In doing so, we believe it would harm our national
security and our ability to protect our citizens from drug dealers,
terrorist and other criminals." [Find more info on SAFE by searching on
H.R.850 at Thomas]
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/99/02/cyber/articles/26encrypt.html

MERGERS

SBC SAYS ICC STAFF REPORT ID DISTORTED
Issue: Mergers
Executives at SBC accused regulators at the Illinois Commerce Commission of
misrepresenting the views of James Kahan, SBC senior vice president of
corporate development. ICC staff quoted My. Kahan's testimony that suggested
that SBC's primary concern is high-margin business customers rather than
low-margin residential customers. "Kahan clearly drew the distinction
between an incumbent's obligation to serve any and all customers -- an
obligation that Ameritech has today and will retain after the merger --
versus a competitive local exchange carrier's freedom to compete for any
customer, which SBC will have in markets outside of the SBC/Ameritech
region," said a SBC statement. The ICC's hearing officer has received
hundreds of pages of testimony is support of and in opposition to the
proposed merger. A recommendation to ICC Commissioners will be made this
Spring -- the Commission must vote on the matter before July.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9902260354,00.html

EYE-POPPING, HALF-COCKED IDEA MAKES A POINT
Issue: Mergers, Really Big Ones
CBS-NBC-CNBC-MSNBC-CNN? Vanna, may I buy a vowel? Top CBS executive Mel
Karmazin told advertising executives that he'd like to buy NBC, if
government rules did not prevent it. Here's all he'd have to do: 1) convince
the FCC to change its rules about controlling more than 35% of the broadcast
audience; 2) raise $20 billion to buy the competing network; and then 3)
convince everyone why he wants a network with no football and "a now
tarnished Olympics franchise." Mr. Karmazin's point is that there's all this
consolidation going on, but he doesn't get to play [maybe Mr. Greising
didn't do his homework on how Mr. Karmazin became head of CBS...] "But just
because Karmazin should be allowed to create [a combined] network does not
make it a good idea," Greising writes. This is the guy, by the way, who
brought Howard Stern to television.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: David Greising
dgreising( at )tribune.com]
http://chicagotribune.com/textversion/article/0,1492,SAV-9902260136,00.html

TELEPHONE REGULATION

FCC RELEASES AUDIT REPORTS ON RBOCs' PROPERTY RECORDS
Issue: Telephone Regulation
February 24, 1999, the Commission adopted orders to release certain
staff-level Audit Reports concerning property records of the Regional Bell
Operating Companies (RBOCs). Continuing Property Records (CPRs) are a
component of the telephone company's accounting records that provide
descriptive inventories and cost documentation of the company's plant,
property, and equipment used for providing regulated telecommunications
services. Approximately one-half of a telephone company's costs are
associated with the capital investment that is recorded in its CPRs....The
audits examined the hard-wired central office equipment of the companies.
"Hard-wired" equipment in central offices represents the items generally
fixed in place (frames, switches, batteries), as opposed to "plug- ins,"
which are relatively portable (line cards). The hard-wired investment in
central offices represents approximately one-fourth of the total capital
investment for a telephone company. For example, for the RBOCs, the total
investment in network plant is about $200 billion; of this, hard-wired
central office equipment represents approximately $47 billion. The audit
reports found that the RBOCs' book costs may be overstated by approximately
$5 billion. The RBOCs disagree with these audit reports and have filed their
responses with the Division.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9015.html

U.S. HOUSE PASSES CELLPHONE PRIVACY ACT
Issue: Telephony
Overwhelmingly the House passed a bill Thursday that would make it illegal
to intentionally intercept, or disclose, any cellular telephone conversation
or other wireless communication. It also bans modifications of scanners to
pick up some calls from cellular phones and bans new scanners that can
intercept digital signals. The bill also orders the Federal Communications
Commission to consider placing a warning label on scanners about
intercepting wireless communications. After the 403-3 vote, the bill now
moves to the Senate.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
http://www.mercurycenter.com/svtech/news/breaking/merc/docs/081985.htm

CUBA FAILS TO HALT PHONE SERVICE FROM US AS FIRMS REROUTE CALLS
Issue: International
By cutting off funds owed to the Cuban phone company, Etecsa, US district-court
Judge James King of Miami hoped to get the Cuban government to pay $187.6
million in compensation to the families of four anti-Castro, Cuban-American
activists who were killed by the Cuban air force in 1997. Instead, the Cuban
government shut down phone lines between the US and Cuba Wednesday in protest
of the $19 million that US phone companies are withholding. An AT&T spokeswoman
said that calls are getting through by re-routing through third countries. Last
month, US lawyers argued against withholding the Etecsa's funds, saying that
the phone company is independent from the government and shouldn't be held
liable for the deaths. The phone service shut down comes in the wake of a new
Cuban law that calls for severe punishments for Cuban citizens caught
collaborating with the 37-year-old US trade embargo with Cuba or communicating
with US media. This Cuban action puts tension on the latest Washington policy
of easing regulations on the trade embargo, which the Castro government has
condemned.
[SOURCE: Wall Street Journal (A13), AUTHOR: Jose de Cordoba]
http://wsj.com/

DEUTSCHE TELEKOM, PHONE HOME
Issue: International/Telephony
As the European Union member countries move towards opening their telephone
markets, some former monopolies are encountering the harsh shock of
competition, while for others its still business as usual. Nowhere have
the winds of competition been felt as in Germany, where the national carrier,
Deutsche Telekom, has lost already 30% of its long distance market since the
door to competition was blown open just one year ago. [You go, metaphor-girl]
A young cellular company called Mobilcom has managed to become Telekom's
biggest rival by
simply reselling services over lines leased form the former monopoly
carrier. "You can build your own infrastructure, but the start-up losses are
very high," said Gerhard Schmid, founder of Mobilcom. Schmid was able to
attract customers by offering rates that were 70% lower than Telekom's
prices. Although slow to respond, Telekom's rates have fallen dramatically
as well. The result is an all out price war -- involving several companies -
with no end in sight.
[SOURCE: New York Times (C1), AUTHOR: Edmund Andrews]
http://www.nytimes.com/yr/mo/day/news/financial/europe-telecom.html

SATELLITE TV

JUDGE RULES AGAINST DIRECTV
Issue: Satellite
A federal judge in Florida yesterday issued a 10-day restraining order
barring DirectTV from delivering CBS and Fox television network programming
and setting a March 8 hearing on a permanent restraining order. The
direct-broadcast service said it will immediately begin shutting off service
to roughly 300,000 customers. CBS, Fox, NBC and ABC asked the Miami judge to
bar DirectTV from carrying their programming via satellite. A permanent
restraining order could include NBC and ABC programming. The legal wrangling
is the latest result of a dispute over interpretation of federal law which
allows satellite systems to provide network programming to viewers who
cannot receive the local affiliate of a network using a television antenna.
In Congress Rep. Billy Tauzin (R-LA) introduced legislation yesterday that
would grant a 90-day moratorium for customers facing the loss of the network
signals, while requiring the Federal Communications Commission to develop a
more reliable method of determining who qualifies to receive network signals
via satellite.
[SOURCE: Washington Post (E1), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/business/daily/feb99/directv26.htm

CAMPAIGN FINANCE REFORM

SLIGHT SHIFT ON CAMPAIGN FINANCE REFORM
Issue: Campaign Finance
Sen. Mitch McConnell (R-KY), a leader against congressional efforts to change
campaign fundraising rules, seemed to soften yesterday. He said he is now
willing to explore a compromise on the previously intractable issue and will
work with Sen. Christopher J. Dodd, (D-CT) the new ranking Democrat on the
Senate Rules Committee, on the issue. While not talking about specifics,
Sen. McConnell suggested it might include raising the cap on the amount of
"hard money" that individuals can contribute to candidates in exchange for
curbs on unregulated, unlimited "soft money" donations to political parties
by corporations, unions and wealthy individuals. Sen. McConnell's initiative
came as a bipartisan group of lawmakers who steered a campaign finance bill
through the House last year mounted a new effort for a House vote this
spring to pressure the Senate to act before next year's elections.
[SOURCE: Washington Post (A15), AUTHOR: Helen Dewar]
http://www.washingtonpost.com/wp-srv/politics/special/campfin/stories/finan
ce022699.htm

ANTITRUST

FTC CHAIRMAN URGES CAUTION ON TECH BREAKUPS
Issue: Antitrust
Speaking to antitrust lawyers at an American Bar Association workshop,
Federal Trade Commission Chairman Robert Pitofsky said antitrust regulators
should "proceed cautiously" in considering the forcible breakup of high-tech
firms. He said, "It is essential to acknowledge that high-tech industries
are different and enforcement must take those differences into account." He
did not make specific references, but both Microsoft Corp. and Intel Corp.
are presently involved in prominent antitrust cases. In staking out a middle
ground, Chairman Pitofsky suggested "antitrust enforcers should proceed
cautiously in breaking up or mandating access to an existing network, even
when that network is dominant." The FTC noted that Chairman Pitofsky's
remarks do not necessarily reflect the views of the commission or any other
commissioner.
[SOURCE: Washington Post (E1), AUTHOR: Tim Smart]
http://www.washingtonpost.com/wp-srv/business/daily/feb99/antitrust26.htm
For your daily fix on the Microsoft trial, see also:
MICROSOFT TRIAL FOCUSES ON GATEWAY DOCUMENT
[SOURCE: Washington Post (E1), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm
MICROSOFT'S BEST HOPE IS TO CONTAIN DAMAGE
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
http://www.mercurycenter.com/svtech/columns/gillmor/docs/dg022699.htm

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...and we are outta here. Happy Friday -- have a great weekend.