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LIBRARIES
Librarian Seeks Evidence of Complaints About
Internet Misuse (CyberTimes)
Reading Frenzy (ChiTrib)

INTERNET
High Court Upholds Law Banning 'Obscene' E-Mail (WP)
No Rules Yet For Domain Name Competition (CyberTimes)
North Dakota Governor Says No To Net Taxes (CyberTimes)
RealNetworks Signs Broadcast Deals (WP)

TELEVISION
Turned Off by TV? This Is Your Week (WP)
Intel, NBC Report Collaborative Plan for Digital TV (ChiTrib)

TELEPHONY
German, Italian Phone Companies Closer to Merger (ChiTrib)
MCI WorldCom to Buy CAI Wireless (WP)
How to Identify Network Elements (FCC)

ADVERTISING
Lost Hazard, Lost Horizon: Billboards Give Up Smoking (NYT)

LIBRARIES

LIBRARIAN SEEKS EVIDENCE OF COMPLAINTS ABOUT INTERNET MISUSE
Issue: Libraries
With Internet access becoming a common feature in America's public
libraries, whether or not to restrict its usage has become an increasingly
contentious issue. One librarian, David Burk, has set out to gather evidence
to support arguments against unrestricted access to material on the
Internet. Burk has requested records from libraries across the country of
complaints caused by patrons, especially children, viewing inappropriate Web
material. Many library systems, however, have refused to disclose complaint
records on the ground that it would violate patron privacy. Burt is not
convinced
by the libraries' arguments. "There's no privacy issue here. The names can
be redacted," Burt said. "I think it's clearly that they don't want the
library to be embarrassed by incidents of children accessing pornography in
libraries." Lawyers for the targeted cities insist that amount of
inappropriate computer use is "infinitesimal."
[SOURCE: CyberTimes, AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/20library.html)

READING FRENZY
Issue: Libraries
Chicago, the city of neighborhoods, is also the city of neighborhood
libraries. Branches of the city library here reflect the interests and
backgrounds of the communities they serve. And, in recent years, the library
system has flourished under a mayor determined to improve the quality of
life for city residents. "A library is part and parcel of the everyday life
of the community," Richard M. Daley has said. "That's what a library is --
the heartbeat of the community." In the past ten years, 36 library branches
have been built or renovated -- with another 20 or more scheduled for
improvement before 2001. When the project is completed, 70% of the systems
buildings will be new or updated. Library Journal magazine reports that
national per capita spending on libraries ranges from about $4.50 in poor
communities to as much as $90 in rich ones and, when averaged out, has
increased $1 a year each of the last several years. Visit the Chicago Public
Library Web site at www.chipublib.org
[SOURCE: Chicago Tribune (Sec 5, p.1), AUTHOR:]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904200045,00.html)

INTERNET

HIGH COURT UPHOLDS LAW BANNING 'OBSCENE' E-MAIL
Issue: First Amendment/Internet Regulation
Think twice before you send lewd messages to public officials to annoy them.
The Supreme Court yesterday upheld a federal law that makes it a crime to
send e-mails that are obscene as a way to annoy other people. The judges
rejected a First Amendment challenge to one part of the sweeping 1996
Communications Decency Act. The Court ruled against ApolloMedia Corp., a San
Francisco company that runs a Web site called Annoy.com which claimed the
law would discourage people from writing lawful but bawdy communications.
The Supreme Court affirmed a lower court ruling that said the law bans only
"obscenity." But the decision also effectively endorsed the
constitutionality of the e-mail provision that makes it a crime to send a
message that is "obscene, lewd, lascivious, filthy or indecent with intent
to annoy, abuse, threaten, or harass another person." A three-judge panel
in California had previously ruled that the wording of the provision was
meant to characterize only illegally obscene material.
[SOURCE: Washington Post (A2), AUTHOR: Joan Biskupic]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-04/20/071l-042099-idx.html)
See also:
COURT REJECTS CHALLENGE TO INTERNET SPEECH LAW
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/20decency.html)
RESTRICTION ON E-MAIL SMUT UPHELD BY TOP COURT
[SOURCE: Chicago Tribune (Sec 1, p.4), AUTHOR: Associated Press]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904200290,00.html)

NO RULES YET FOR DOMAIN NAME COMPETITION
Issue: Internet/Competition
At a news conference on Wednesday, the Internet Corporation for
Assigned Names and Numbers (ICANN) will announce five applicants selected to
participate in an initial round of competition in the business of registering
domain names. The rules for competition were still being discussed Monday
night, however. Network Solutions was created to register domain names under a
government contract, so the Department of Commerce is involved in negotiating
how the business will be opened up to competitors. Details yet to be decided
include whether competitors will have to pay Network Solutions to enter the
business. "The company has proposed that the new registrars pay an up-front fee
of $10,000 to help offset the cost of the software it has developed for the
shared registrations system," Clausing reports. They are also proposing a $16
fee per name registered. If Network Solutions and The Department of Commerce
cannot finalize an agreement this week it could push back ICANN's plan to open
up registry to competition by the end of the month. Full-scale international
competition is scheduled to begin in June.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing ]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/20capital.html)

NORTH DAKOTA GOVERNOR SAYS NO TO NET TAXES
Issue: Internet/Regulation
Governor Edward T. Schaffer of North Dakota vetoed a law passed by the state
legislature last week that would tax Internet service providers, upholding the
federal Internet Tax Freedom Act. The House overrode the veto, but it sustained
by a slim vote in the Senate. "I simply cannot agree that this tax is wise or
necessary public policy when we are spending millions to encourage the
development of the Internet as a driving economic force in North Dakota's
future," Gov Schaffer said. A panel of industry, state and local officials is
scheduled to address the Internet sales and access taxes at a meeting in June.
The National Association of Counties and the U.S. Conference of Mayors have
filed suit against the panel, saying that it is tilted in the industry's favor.
Iowa and Wisconsin are other states that are likely to uphold the Internet Tax
Freedom Act. "This is great news on the taxation issue," said Paul Rusinoff of
the Internet Alliance -- an industry trade group.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing ]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/20capital.html)

REALNETWORKS SIGNS BROADCAST DEALS
Issue: Internet/Infrastructure
Deals announced Monday are designed to boost the quality of video and audio
broadcasts delivered over the Internet. RealNetworks, which broadcasts news,
special events and other material over the Web, announced agreements with
AT&T, GTE, Sprint and other telecommunications companies to relieve
congestion on the Internet by allowing RealNetworks to install sophisticated
computer servers throughout the Internet network. Those servers, connected
to the company's Seattle network via high-speed links, act as broadcasting
hubs to handle local traffic and to shift traffic during periods of high
demand.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/WAPO/19990420/V000478-042099-idx.html)

TELEVISION

TURNED OFF BY TV? THIS IS YOUR WEEK
Issue: Television
National TV-Turnoff Week starts Thursday. TV-Free America is asking people
to give up their viewing for one week, "sort of a small-screen mini-Lent."
The Washington nonprofit group says it will be good for us since we are
becoming "a bunch of fatties with short attention spans." Conveniently,
TV-Turnoff Week is timed to end the night before the broadcast networks' May
sweeps derby starts on April 29. Although they have been promoting a week
free of TV for five years and have impressive endorsements, the group's
effort has only registered a blip on the Neilsen surveys. Hospital
researcher David Allison says he has a better idea. Make children exercise
in order to watch TV. In one experiment he took a few overweight New York
children and hooked their sets to bicycles. They not only shed fat, they
also watched less TV.
[SOURCE: Washington Post (C7), AUTHOR: Lisa de Moraes]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-04/20/125l-042099-idx.html)

INTEL, NBC REPORT COLLABORATIVE PLAN FOR DIGITAL TV
Issue: Digital Television
General Electric's NBC is planning to start HDTV broadcasts this autumn and
has announced its first collaboration in the digital TV arena. The company
will work with chip maker Intel to provide interactive services with digital
broadcasts. With NBC's enhanced digital programming, viewers will also have
the option of checking an electronic program guide, chatting, sending
electronic greeting cards or taking interactive quizzes [Greg are Marsha
first fought over the attic is which episode?].
[SOURCE: Chicago Tribune (Sec 3, p.2), AUTHOR: Reuters]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904200298,00.html)

TELEPHONY

GERMAN, ITALIAN PHONE COMPANIES CLOSER TO MERGER
Issue: Mergers
Deutsche Telekom (DT) and Telecom Italia (TI) officials are expected to
announce the details of an alliance or merger today. If the companies do
merge, the deal could be worth $200 billion and would be the world's largest
ever. TI is trying to avoid a hostile takeover by smaller rival Olivetti and
DT may be trying to contain its own rival, Mannesmann AG. Some say Italy's
government, with a 3.4% stake and veto control over the recently privatized
TI, will not allow the merger since the German government controled DT.
There are also rumors that DT may buy #3 US long distance provider Sprint.
The possible DT-TI deal has French telecommunications giant France Telecom
nervous [and does this all remind anyone of something?...unified Germany,
pact with Italy, anxiety in France...] Analysts are saying we may soon see a
consolidation fever in Europe as we've seen in the US in recent,
post-Telecom Act years.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904200311,00.html)
See Also:
EUROPEAN TELEPHONE GIANTS DISCUSS $95 BILLION MERGER DEAL
[SOURCE: New York Times (A1), AUTHOR:John Tagliabue]
(http://www.nytimes.com/yr/mo/day/news/financial/telecom.html)
HISTORIC DEALS FACES BIG HURDLES
[SOURCE: Wall Street Journal (A17), AUTHOR: Gautam Naik, Deborah Bail, and
William Boston]
(http://wsj.com)
EUROPEAN PHONE FIRMS DISCUSS HUGE MERGER
[SOURCE: Washington Post (E3), AUTHOR: Anne Swardson]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-04/20/120l-042099-idx.html)

MCI WORLDCOM TO BUY CAI WIRELESS
Issue: Merger
MCI WorldCom has been looking for a ready-built wireless communications arm.
Now it has it. MCI WorldCom, the nation's number 2 provider of long distance
calling service, is purchasing CAI Wireless Systems for about $414 million.
Rumors had been circulating that both MCI WorldCom and Sprint were interested in
the company. CAI operates six analog-based wireless subscription video
systems in six major cities, including New York City and Washington (DC) and
owns wireless channel rights in eight more major cities.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/mci19.htm)

HOW TO IDENTIFY NETWORK ELEMENTS
Issue: Telephone Regulation
In Response to the Supreme Court's 1999 Decision, the Commission Seeks
Public Comment on How to Identify the Network Elements Incumbent Local
Exchange Carriers Must Make Available to Requesting Carriers. (CC Docket No.
96-98 and 95-185, FCC 99-70). Also available as WordPerfect
(http://www.fcc.gov/Bureaus/Common_Carrier/Notices/1999/fcc99070.wp) and PDF
(http://www.fcc.gov/Bureaus/Common_Carrier/Notices/1999/fcc99070.pdf) files.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Notices/1999/fcc99070.txt)

ADVERTISING

LOST HAZARD, LOST HORIZON: BILLBOARDS GIVE UP SMOKING
Issue: Advertising
By Friday morning, there should be no more Jo Camels or Marlboro Men lining
the streets and highways of this nation. As part on a $206 billion
settlement with 46 states about liability for smoking-related health care
costs, tobacco companies have agreed to take down all billboard ads for
their products. Tobacco money has carried the outdoor advertising industry
for much of this century, but that started to change when some cities began
to outlaw tobacco billboards and 4 states had them removed as part of
settlements. Anti-smoking groups claim that billboards are partially
responsible for the steady rise in teen smoking. According to Richard Polly,
professor of marketing at the University of British Columbia, billboards
helped give cigarettes a harmless image by making their appearance
commonplace. "The more we see something the more we see it as benign," he
said. Some outdoor advertisements, such has the pre-1970 Mail Pouch chewing
tobacco signs that are federally protected landmarks, might manage to evade
removal. "While no one has said this, we still believe they are a part of
Americana,: said Will Steel, a deputy attorney general in West Virginia,
where Mail Pouch is still sold.
[SOURCE: New York Times, April 19(C1), AUTHOR: Bob Tedeshi]
(http://www.nytimes.com/library/politics/041999tobacco-billboards.html)

--------------------------------------------------------------

INTERNET
Privacy Policy Vs.Practice (WP)
Hearing on Viruses Becomes Debate on Privacy (CyberTimes)
AOL To Roll Out Devices That Get You On The Internet
Without Requiring A PC (WSJ)
Judge Strips Look-Alike Web Name (WP)
Engineer Charged in Online Hoax (WP)
Altavista To Auction Advertising Space (WP)
Rap Revolutionaries Plan an Internet Release (NYT)
A Virtual Firm for Lawyers Who Volunteer (CyberTimes)

TELEPHONY
Ameritech Takes Some of Mystery Out of Bills (ChiTrib)
FCC Auction Of Wireless-Phone Licenses Brings In Total Of
About $412.8 Million (WSJ)
AT&T, Time Warner Likely Won't Sign Deal For Local Phone
Service By April 30 (WSJ)
Telecom Italia Holds New Talks (WSJ)

FCC
Kennard Testifies before House Appropriations Committee (NECA)

INTERNET

PRIVACY POLICY VS. PRACTICE
Issue: Privacy
The federal government is not doing a very good job protecting Americans'
privacy on the Internet, according to the Center of Democracy and
Technology. The Washington-based, high-tech policy and advocacy group will
release a report today that suggests not all federal Web sites adhere to the
Clinton administration's claims that it wants to protect privacy on the Web.
CDT concludes that only a third of the federal Web sites reviewed
publish a link to a "privacy notice" or "privacy policy" -- disclosures on
what information is collected electronically and how it is used -- on their
home page. Only half had notices that could be found with a few clicks of a
computer mouse. "Posting the privacy notices just gets us to the point where
the agencies say, 'Yes, we agree privacy is an issue,'" CDT policy analyst
Ari Schwartz said. "Next we can look at the actual content of the policies."
CDT says it sent its report to Peter Swire, appointed last month by the
White House as the first "chief counselor for privacy" and urged him to
bring all federal Web sites into compliance.
[SOURCE: Washington Post (A27), AUTHOR: John Schwartz]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-04/16/089l-041699-idx.html)

HEARING ON VIRUSES BECOMES DEBATE ON PRIVACY
Issue: Privacy
On Thursday, a Congressional subcommittee hearing on how to prevent further
outbreaks of viruses like Melissa became a discussion of tensions that
arises from protecting the nation's computer networks against such attacks
without jeopardizing privacy in Cyberspace. "We are so wrapped up with the
idea of hunting down cyberterrorists that the walls are chipped out and our
privacy rights are steadily eroded," said Rep Anthony Weiner (D-NY).
Rep. Wiener was disturbed that America Online and Microsoft provided
information to help track the creator of the Melissa virus. Others, however,
focused more on the potential harm that other viruses could cause. "Future
mutations, or entire new strains, could easily be much harder to detect,
spread even more quickly and cause significantly more damage," said Richard
Pethia, director of a computer security center at Carnegie Mellon. Pethia
and others stressed the need for greater cooperation between governmental
and private entities in the tracking of cyber criminals.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/16virus.html)

AOL TO ROLL OUT DEVICES THAT GET YOU ON THE INTERNET WITHOUT REQUIRING A PC
Issue: Internet Access
AOL is expected to introduce a number of devices that allow access to the World
Wide Web without the use of a personal computer. A "screen phone" is one such
device. It looks like an office desk phone, but has a small screen and
keyboard. AOL's goal with the new device is: "to make AOL a pervasive presence
in consumer's lives, cementing member loyalty and expanding revenue
opportunities for advertising and electronic commerce," Weber and Delaney
report. Although a manufacturing partner has not been announced, Alcatel of
France is the most likely. Minitel, an earlier screen phone has caught on in
France. AOL is hoping that with a mass market of US consumers hooked on the Web
and email, the screen-phone will not replace the PC (to be used for longer
Internet sessions) but will be sold as a way to perform shorter Internet tasks.
AOL's backing would give Alcatel the name it needs to sell its phones. Alcatel
screen-phones do not use Microsoft operating system -- they use Java software
from Sun Microsystems, AOL's new partner stemming from AOL's Netscape
purchase.
[SOURCE: Wall Street Journal (B6), AUTHOR: Thomas Weber, Kevin Delaney]
(http://wsj.com/)

JUDGE STRIPS LOOK-ALIKE WEB NAME
Issue: Legal Issues/Internet
The decision of a federal judge in Virginia yesterday is expected to set a
precedent for thousands of variations of popular corporate names that have
been registered by individuals either seeking to sell them back to the
business or drum up traffic for their own sites. U.S. District Judge Claude
Hilton ruled that the domain name "wwwpainewebber.com" be stripped from the
owner of a pornographic Web site and that the name be frozen by Network
Solutions, the company that doles out Web site names. Walter Effross, a law
professor at American University, said, "This ruling is significant, because
it's going to raise a lot of companies' consciousness that they should be
doing something about their site names. This is surely going to spawn a lot
of other cases." Effross believes the ruling will put more responsibility on
Network Solutions to review domain name requests. At the present time
Network Solutions receives 7,000 registration requests every day and
normally approves their use within 24 hours.
[SOURCE: Washington Post (E1), AUTHOR: Ianthe Jeanne Dugan]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/internet0416...)

ENGINEER CHARGED IN ONLINE HOAX
Issue: Legal Issues/Internet
A 25-year-old employee of PairGain Technologies was arrested yesterday and
accused of originating a fake news story posted on the Web that caused stock
prices for PairGain to rise dramatically. Gary Dale Hoke of Raleigh (NC)
faces a charge of securities fraud, which carries a maximum penalty of 10
years in prison and a $1 million fine. A fake Bloomberg News Web page
included a false report of the company's impending acquisition and led to
frenzied trading in PairGain on April 7. Hoke allegedly used the Angelfire
service for his bogus Web page and Microsoft's Hotmail.com to direct people
to the page from a financial message board operated by the online portal
company Yahoo. Charles McBrayer, chief financial officer at PairGain,
suggested two motivations for such an act. He believes the person is "trying
to make money on it or trying to make money for some friends on it -- or
trying to prove how smart he is, that he's smarter than everybody else."
[Maybe he should move to DC when this is over -- proving how smart you are
is considered acceptable social behavior there]
[SOURCE: Washington Post (E2), AUTHOR: John Schwartz]
(http://www.washingtonpost.com/wp-srv/business/feed/biztop924260291361.htm)

ALTAVISTA TO AUCTION ADVERTISING SPACE
Issue: Electronic Commerce
AltaVista announced yesterday it will take the commercialism of search
results one step further by placing paid material directly in the list of
relevant sites located by a search. The Internet search service said the
advertisements will be marked as ads and are being used in an attempt to
increase revenue for the site and heighten the relevancy of search returns.
Starting Monday AltaVista will phase in paid placements for the 500 keywords
(search terms) they are auctioning to advertisers. Initially only one
advertiser will be listed per search. Later a second paid listing will be
added. Critics contend that the advertisements sully the "objective"
computer-generated results that come up in response to searches. AltaVista's
owner, Compaq Computer Corp., has been adding features to the service as it
readies it for a public stock offering later this year.
[SOURCE: Washington Post (E3), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/search0416.htm)

RAP REVOLUTIONARIES PLAN AN INTERNET RELEASE
Issue: Internet/Recording Industry
Public Enemy, a popular rap group, will release its new album, "There's
Poison Going On", through the Internet. The record will be available for
download and mail order on a Web site starting in May, but wont be
available in stores until June 16. Atomic Pop, the group's label, has not
yet decided on which of the competing formats it will use to compress the
album into a downloadable file. The decision of Public Enemy to do an
Internet release highlights the industry's move toward the distribution of
music through digital means. "Change is inevitable, and everything is about
to change," said Chuck D, the rapper who leads Public Enemy. "At the end of
the day," said Al Teller, founder of Atomic Pop, "artists will see a
larger dollar amount than from the traditional way of selling records."
[SOURCE: New York Times (B5), AUTHOR: Neil Strauss]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/16chuck.html)

A VIRTUAL FIRM FOR LAWYERS WHO VOLUNTEER
Issue: Volunteerism
A recently launched Web site, Probono.net, hopes to turn the good intentions
of overworked lawyers into reality for people needing free legal help.
Michael Hertz, a partner in a New York law firm, founded the project with
the help of a $250,000 grant from financier George Soros' Open Society
Institute. The site is organized around several practice areas, each of
which is "hosted" by a public interest law firm and supported by a private
firm. Lawyers who visit the site can find out about cases that need
volunteers and visit an online library to learn information about unfamiliar
areas of the law. "The need is huge," Hertz said. "Studies show that 80
percent of the civil legal needs of low-income people go unmet by lawyers.
If we can link all the parts of the legal system together, it can be very
effective." Many in the legal and nonprofit communities are very excited
about possibilities this project. "In one way, this site enables attorneys
sitting at desktops in an office to find out about areas of law that might
interest them, find out who the players are and find out how to get involved
in a public interest program," said Michael Rothenberg, associate director
of New York Lawyers for the Public Interest.
[SOURCE: CyberTimes, AUTHOR: Carl Kaplan]
(http://www.nytimes.com/library/tech/99/04/cyber/cyberlaw/16law.html)

TELEPHONY

AMERITECH TAKES SOME OF MYSTERY OUT OF BILLS
Issue: Telephone
A simplified phone bill from local phone giant Ameritech has been unveiled
in Indiana, Michigan and Ohio and is will be used in Chicago in a month or
two. The new bill will help the company comply with yesterday's
truth-in-billing order from the FCC. But there's still problems: The new
Ameritech bill, for example, has a single line that reads 'Federal Access
Charge...$3.50.' "That's a charge name that keeps changing," said Martin
Cohen, executive director of the Illinois Citizens Utility Board consumer
advocacy group. "They were calling it a 'mandatory charge per FCC order,'
and now call it a federal access charge, but none of the names really
describes it. Most customers assume it is a tax, but it isn't," he said. "It
is a charge made by Ameritech for the purpose of maintaining their network
lines. It was approved by the FCC, but not mandated. The FCC limits how much
Ameritech can charge, but it doesn't require them to levy the charge, and
none of it goes to any governmental body." Mr. Cohen said the new Ameritech
bill still makes a number of fixed monthly fees sound like taxes even though
they aren't. The new bill does go far to solve two industry headaches:
slamming -- where a company illegally switches a consumers service -- and
cramming -- where a company adds new services without permission. Last year,
the FCC logged more than 60,000 consumer complaints about confusing phone
bills and service changes they didn't ask for.
[SOURCE: Chicago Tribune (p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,ART-27130,00.html)

FCC AUCTION OF WIRELESS-PHONE LICENSES BRINGS IN TOTAL OF ABOUT $412.8 MILLION
Issue: Spectrum/Regulation
The Federal Communications Commission (FCC) raised about $412 million in an
auction of over 300 licenses to be used by cellular phone companies and paging
services. Due to increased competition and prices have gone down since the last
auction. In 1996, the FCC took in $10.2 billion and auctioned 493 licenses.
Scott Cleland, managing director of the Legg Mason Precursor Group, said, "The
difference in the proceeds shows that the value of spectrum has changed. At the
[earlier auctions] people thought this was the last frontier. But the FCC has
put more out there so it's not as scarce. Also, there's a lot more competition
and so, there's more risk." The biggest winner was Cook Inlet/Vocie Stream, an
Anchorage Alaska based company owned by native Alaskans. It spent $19.2 million
on 28 licenses in Chicago and Dallas. FCC Chairman Kennard said the auction
added licenses to smaller markets, like Carlsbad (NM), as well as larger ones.
[SOURCE: Wall Street Journal (B7), AUTHOR: Kathy Chen]
(http://wsj.com/)

AT&T, TIME WARNER LIKELY WON'T SIGN DEAL FOR LOCAL PHONE SERVICE BY APRIL 30
Issue: Cable/Telephony
AT&T said they may not have an agreement closed with Time Warner by April 30.
Talks began on Feb. 1 between the two around Time Warner offering AT&T access
to its 12 million customers. Time Warner Chairman Gerald Levin says the talks
are proving to be complex. An AT&T statement says, "There are no hurdles to
prevent us from reaching an agreement soon." The complexities of the talks stem
from AT&T's attempt to gain an agreement with cable operators to use their
lines to provide local phone service across the US. AT&T would like to use its
agreement with Time Warner as a model for deals with other cable operators. In
turn, Time Warner wants to see how AT&T fares with other companies before they
cement their 20 year agreement with AT&T. The two companies have resolved a
couple of issues -- how revenues will be divided and how much capacity or
"bandwidth" AT&T will have on Time Warner systems. Unresolved issues include
which cities to launch service in and when. Media One must also approve the
agreement. It has veto rights over Time Warner's cable systems.
[SOURCE: Wall Street Journal (B7), AUTHOR: Leslie Cauley]
(http://wsj.com/)

TELECOM ITALIA HOLDS NEW TALKS
Issue: International/Telecommunications
Telecom Italia has entered talks with telecommunications company Deutsche
Telekom -- discussing a merger that would prevent Olivetti's pending takeover
of Telecom Italia. Government ownership and the strategic partnership currently
in place between France Telecom and Deutsche Telecom are two "huge hurdles" to
the merger. The German government owns 74% of Deutsche Telekom, while the
Italian government owns only 4.5% of Telecom Italia. If the merger were to go
through and the German government held onto its shares, it would be a major
shareholder in what is now Telecom Italia. Both governments hold their former
monopolies as national strategic assets and the European Commission would
scrutinize the deal. Further complications include France Telecom and Deutche
Telekom's joint stake in Sprint, known as Global One. If the Telecom Italia and
Deutche Telekom merger goes through, Deutche Telekom would increase its global
presence and be a stronger rival to AT&T and British Telecommunications.
Telecom Italia may present the pending merger as the only alternative to
Olivetti's pending $65 billion bid to take over the company.
[SOURCE: Wall Street Journal (A10), AUTHOR: Anita Raghavan, Steven Lipin and
Gautam Naik]
(http://wsj.com/)

FCC

KENNARD TESTIFIES BEFORE HOUSE APPROPRIATIONS COMMITTEE
Issue: FCC/Budget Issues
The House Appropriations Committee's Subcommittee on Commerce yesterday held
a hearing on the FCC's Year 2000 budget. The FCC has requested a Year 2000
budget of $230,887,000 and a staff of 1,930 funded full-time equivalents
(FTEs). The request is an increase on $38,887,000 from the previous year. Of
the increase, $20.3 million is directly related to the agency's relocation
to its new Portals location. Subcommittee Chairman Rogers (R-Kentucky), who
opposed the FCC's relocation and who worked to block the FCC's relocation
funding request last year, said that the subcommittee will not appropriate
money to pay for the move. Chairman Rogers said that as long as he is
chairman, "we will not pay." The FCC is seeking $8.7 million in year 2000
to help repay the General Services Administration (GSA) for part of its
moving expenses. Chairman Kennard said that Congress' refusal to help fund
the move could have a "devastating effect" on the agency. Rep Julian Dixon
(D-CA) stated that the subcommittee should "make it clear" to GSA that money
for the relocation is never going to paid and added that GSA should not
punish the FCC. Chairman Kennard pledged to work with the subcommittee "to
make the best of the situation."
Chairman William Kennard before the House Appropriations Committee,
Subcommittee on Commerce: In his prepared statement, Chairman Kennard
briefed Subcommittee Members on the recent FCC consumer protection
initiatives. Chairman Kennard mentioned three examples of the agency's
commitment to "work on behalf of the American consumer": 1) the FCC has
increased consumer access to long distance rate information by requiring
long distance carriers to publicly disclose their rates to the public in an
easy-to-understand, clear format, including posting rates on the companies'
websites; 2) the Commission launched a consumer education campaign to
publicize what cable consumers should now do to ensure good service and fair
rates since sunset of FCC's cable rate regulation authority; and 3) the
adoption of new standards which will require telephone companies to make
their bills clear and easy to understand. Chairman Kennard also told the
Subcommittee that the agency needs the right tools to be able to create a
"leaner and smarter" FCC. Chairman Kennard requested Congress give the
agency buy out authority. He said this would allow the FCC to buy out
permanent employees and to replace them with employees with the appropriate
skills to handle the agency's changing workload. In addition, Chairman
Kennard said the FCC needs legislation to ensure that the goals of Section
309(j) of the Communications Act are met, and that our auctions/licensing
process is not completely undermined by the bankruptcy courts.
[SOURCE: National Exchange Carriers Association]
(http://www.neca.org)

--------------------------------------------------------------
...and we are outta here. Have a great, tax-free weekend.

INTERNET
Electronic Tax Filing Service Crashes at Crunch Time (WP)
Senate Wants FCC to Study Broadband (WP)
Internet Access and the Consumer (Senate)
Internet Providers' Demands On High-Speed
Data Rejected (NYT)
Northern Telecom Plays Down Phone Roots,
Embraces 'I Word' (WSJ)

EDTECH
Pencils Down: End of Paper Test Raises Questions

BROADCASTING
Regulatory Classification of Low-Power Television Licensees (House)

TELEPHONE REGULATION
Truth-in-Billing (NTIA)

JOURNALISM
High-Tech Heads Discuss News Shift (SJ Merc)

INFOTECH
With Free PCs, You Get What You Pay For (WSJ)

EMPLOYMENT/ECONOMICS
America Online Is Facing Challenge Over Free Labor (NYT)
Computer Age Gains Respect of Economists (NYT)

INTERNET

ELECTRONIC TAX FILING SERVICE CRASHES AT CRUNCH TIME
Issue: Technology
People intent on working on their income tax forms online Tuesday got a
surprise when both Intuit's TurboTax and WebTurboTax were unavailable for
about 14 hours. Intuit officials said the company, anticipating heavy use
this week, backed up their preparation services Monday night. As a result
the service was not available until 12:30 PM Tuesday. The popular services
had filed 1.2 million tax returns through their online services as of last
Thursday. Electronic-filing has grown rapidly this year, encouraged by the
Internal Revenue Service. Companies like Intuit have attracted customers by
promising faster refunds.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/turbotax13.htm)

SENATE WANTS FCC TO STUDY BROADBAND
Issue: Broadband
In a Senate hearing yesterday Senator John McCain (R-AZ) rejected calls from
some Internet service providers and America Online for immediate legislation
to stop cable services from offering exclusive high-speed Internet services
via cable lines. Sen. McCain, chairman of the Senate Commerce Committee,
said he would soon introduce legislation with bipartisan backing mandating a
study by the Federal Communications Commission and the Commerce Department's
National Telecommunications and Information Administration. Sen. McCain said
the study would also cover the extent to which high-speed services were
being made available in rural and low income areas. The FCC in February
declined to conduct a formal study of cable broadband services but said it
would continue to monitor the evolving marketplace. Subscribers choosing
Internet services from cable companies do not have a choice of Internet
service providers and must accept service providers owned by the cable
companies. AOL chairman Steve Case told the Senators, "I oppose regulation
of the Internet but the broadband infrastructures on which the Internet
rests -- whether cable, telephone or other -- must be open." However, on
Internet connectivity using cable, Cox Communications president James Robbins
said, "Government regulation will impede its progress, not help its progress."
[SOURCE: Washington Post (Online), AUTHOR: Reuters]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/cableinternet13
.htm)
See also:
COMMUNICATIONS `ARCHITECTURE' DEBATED IN SENATE PANEL
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/fast14.htm)
INTERNET ACCESS AND THE CONSUMER
Issue: Internet Access/Competition
The Senate Commerce Committee held a hearing on how to facilitate the
deployment of faster, higher-speed Internet access services. URL below
offers a link to Chairman John McCain's (R-AZ) opening statement as well PDF
versions of the witness' testimony (except AOL's Steve Case). Witnesses:
Mr. James Robbins, President and COO, Cox Communications, Inc.; Mr. Charles
Brewer, CEO, Mindspring Enterprises, Inc.; Mr. William L. Schrader, Chairman
and CEO, PSINet Inc.; Mr. Solomon Trujillo, President and CEO, US West; and
Mr. Steve Case, Chairman, America Online. Sen McCain said the hearing would
address two questions: 1) what problems might result from the fact that
cable modem service only gives its subscribers *limited* choice in accessing
a high-speed Internet service provider? 2) what problems might result from
the fact that 98 percent of residential consumers have *no* high-speed
Internet access *at all*, and that rural and low-income consumers may get it
significantly later than their urban, higher-income counterparts? Sen
McCain's closing statement reads (in part): The Commerce Committee will meet
again on April 21 to develop more insight on these issues. After that
hearing, I will introduce legislation that will require NTIA, in
collaboration with the FCC, to analyze the facts and the issues involved in
the ongoing deployment of advanced broadband data networks, especially in
rural and low-income areas, and jointly report their findings to us. To
realize our full potential as individuals and as a nation, we must assure
that the benefits of advanced broadband technology are available to
everyone. I intend to do everything I can to make sure that the promise of
advanced telecommunications becomes a reality for all of us.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/hearings/hearings.htm)
See also:
INTERNET PROVIDERS' DEMANDS ON HIGH-SPEED DATA REJECTED
Issue: Broadband/Regulation
On Tuesday at a hearing of Senate Commerce Committee, Senator McCain (R-AZ),
rejected AOL chief executive, Stephen M. Chase's plea to force cable companies
to "open their networks to competitors for high-speed data, or broadband
services." McCain answered the plea instead by announcing a plan to file a
proposal to require the Commerce Department and the Federal Communication
Commission to "analyze the facts and issues on the deployment of broadband
technology." In February the FCC said they didn't want to launch a formal study
but that they would monitor the broadband market. McCain says his biggest
concern is rural communities that may not be attractive to investors. AOL is
concerned that cable companies will leave them behind as consumers move their
telephone wire Internet connections to high-speed connections offered. Senator
Hollings criticized Baby Bells for holding 98 percent of the access and not
implementing the Telecommunications Act of 1996. Solomon D. Trujillo, president
of US West, responded by saying that FCC rules are too "cumbersome" and delay
the process. In addition, competitors aren't developing high-speed access
aren't serving rural areas. William Schrader of PSINet says, an Internet
service provider says that Bell companies say they would move to rural areas if
rules were relaxed. He says this argument doesn't make sense because the
fastest-growing type of telephone connection, digital subscriber lines (DSL)
only for customers 18,000 feet from the central phone office.
[SOURCE: New York Times (C26), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/14broad.html)

NORTHERN TELECOM PLAYS DOWN PHONE ROOTS, EMBRACES 'I WORD'
Issue: Telephony/Advertising
Northern Telecom is touting a new image and a new name. Nortel has launched an
advertising campaign that emphasizes its role in the Internet business rather
than the telephone business. The ads are targeted at decision makers who would
be likely to purchase corporate equipment, but reach a slightly broader
audience. The ads feature a 50-something CEO giving a speech that is really the
lyrics of the Beatle's song, "Come Together." The ads have aired during
"60-minutes," NBA games, and Sunday morning political talk shows. Nortel's ads
are the latest in a trend among phone companies to allude to Internet chic. A
recent ad for long distance company, Quest asks customers to "ride the light,"
instead of picking up the phone. Nortel's use of Internet imagery is warranted,
somewhat. It uses technology called Internet Protocol, (or IP) that, "enables
phone companies to transport voice, video and data over a single network."
Nortel says the mass-marketed ads help build value for the company, despite the
fact that most viewers aren't likely to buy Nortel products. The majority of
Nortel's profits come from selling to telephone companies and businesses.
[SOURCE: Wall Street Journal (B2), AUTHOR: Stephanie N. Mehta]
(http://wsj.com/)
See also:
TAKEOVER SPREE IN NETWORKING
[SOURCE: San Jose Mercury News, AUTHOR: Monua Janah]
(http://www.mercurycenter.com/svtech/news/indepth/docs/cisco041499.htm)
CISCO, ERICSSON AND NORTEL MAKE DEALS TO EXPAND REACH
[SOURCE: New York Times (C2), AUTHOR: Seth Schihesel]
http://www.nytimes.com/library/tech/99/04/biztech/articles/14cisco.html

EDTECH

PENCILS DOWN: END OF PAPER TEST RAISES QUESTIONS
Issue: Education Technology
The Educational Testing Service officials say "no more" to paper-and-pencil
versions of the Graduate Record Examination. US test takers will now have to
take the exam on a computer. As technology improves, ETS officials believe,
computer examinations will be increasingly more sophisticated and better
able to assess skills than paper versions. But the change has sparked
opposition. Opponents say the new tests raise concerns that need to be
addressed, such as whether some people do better on paper versions, and that
the testing service should, at least for now, continue to offer paper as an
option. Last year, when both versions were offered, opponents note about
half the test-takers opted for the paper test. The computer format is also
an issue since it is a "computer-adaptive test," meaning that the computer
adapts its questions to what it perceives to be the test-taker's ability. It
does not allow test takers to skip a question and come back to it or
underline important points in a reading passage. ETS officials say there are
several good reasons to do it on computer: students get their scores
immediately, the computer test does not take as long as the paper test, and
the tests can be given more often. The Graduate Management Admission Test
has been offered only on computer for two years, and major licensing exams
in nursing and architecture are now also paperless. The S.A.T., sponsored by
the College Board, has a pilot project started but has no immediate plans to
move to computers.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/04/cyber/education/14education.html)

BROADCASTING

REGULATORY CLASSIFICATION OF LOW-POWER TELEVISION LICENSEES
Issue: Broadcasting
Hearing summary on H.R. 486, the Community Broadcasters Protection Act
intended to preserve low-power television stations that provide substantial
local programming to small communities throughout the nation. Witnesses at
the hearing: Mr. Roy J. Stewart, Federal Communications Commission; Dr.
Arthur Stamler, WAZT-LPTV; Mr. Michael Sullivan, Community Broadcasters
Association; Mr. Jim May, National Association of Broadcasters; Mr. George
E. DeVault, Holston Valley Broadcasting Corporation; and Mr. Ron Bruno,
WBGN-TV. URL below provides links to Mr. Stewart's and Mr. May's comments as
well as remarks by Rep Thomas Bliley (R-VA), Chairman of the House Commerce
Committee.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/Witnesses?OpenView&StartK
ey=9D2C64D4243BB3F58525674C007B0B9A)

TELEPHONE REGULATION

TRUTH-IN-BILLING
Issue: Telephone Billing
NTIA filed a letter with the FCC in CC Docket No. 98-170 expressing support
for the goals of the Commission's Truth-in-Billing and Billing Format
proceeding: The National Telecommunications and Information Administration
(NTIA) supports the Commission's efforts to ensure that
customers know exactly what they are paying for. This information is
important and necessary to make competition work. Consumers will be better
equipped to make informed buying choices in an increasingly competitive
market if they can easily determine what services they receive, from whom,
and at what price. Equally important, clear and simple bills should help
consumers to detect inappropriate charges resulting from either billing
error or fraud. Consumers, for example, should have sufficient information
to detect slamming practices, involving an unauthorized switch to a new long
distance carrier, and to detect cramming practices, involving charges for
services not ordered or received. We also urge the Commission to expedite
enforcement actions against carriers that engage in slamming and cramming.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/fccfilings/041299billing.htm)

JOURNALISM

HIGH-TECH HEADS DISCUSS NEWS SHIFT
Issue: Content
High-tech leaders Tuesday told newspaper executives they are going to move
their content onto the Internet, make those stories interactive, and improve
in-depth coverage in their print versions. Traditional newspaper journalism
has shifted in recent years to the World Wide Web to compete with Internet
news sources that deliver information as it breaks rather than waiting for
the morning or afternoon edition. "I think you have to realize that the
Internet is a whole new medium, not an extension of what you have been
doing," said Cox Interactive Media vice president Hilary Goodall. The
discussion came in San Francisco at the annual convention of the American
Society of Newspaper Editors.
[SOURCE: San Jose Mercury News, AUTHOR: Martha Mendoza (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/333006l.htm)

INFOTECH

WITH FREE PCS, YOU GET WHAT YOU PAY FOR
Issue: InfoTech
Free PCs aren't really free. As competition surges among the new trend over the
last two months, companies like Gobi, DirectWeb, InterSquid.com and the first
one out -- Free PC are offering a number of deals. InternetSquid, Gobi and
DirectWeb charge a monthly service fee in exchange for a "midrange PC"
(33-megahertz processor, four-gigabyte hard drive and 32 megabytes of memory).
Intersquid and Gobi require customers to sign a lengthy lease of the PC and
charges a hefty cancellation fee. DirectWeb allows month-to-month payment, but
requires a $150 deposit. The companies really differ on their exploitation of
consumer's demographic information. While some customers say it is a way for
people without a lot of money to have a computer, companies may be targeting
higher income folks who are attractive to advertisers. For example, Free PC
charges no monthly fee and cancellation is simple with no charge. But, in order
to get the service customers must fill out a survey, describing income,
hobbies, and other information advertisers like to know. Also, Free-PC selected
its first 10,000 customers, which may be a way to target higher income
customers. DirectWeb offers a 3 tiered service. You can pay $19.95 a month or
$49.95 a month and for different levels of service. Gobi's service is $25.99 a
month with a promise of upgrading customer's technology -- including eventually
replacing standard modems with cable.
[SOURCE: Wall Street Journal (B1), AUTHOR: David P. Hamilton]
(http://wsj.com/)

EMPLOYMENT/ECONOMICS

AMERICA ONLINE IS FACING CHALLENGE OVER FREE LABOR
Issue: Jobs
America Online has long depended on the kindness of volunteer "community
leaders" to perform a range of tasks including answering questions,
supervising chats, and enforcing AOL rules. These volunteers, of which there
currently are 10,000, receive free service as payment for their commitment
of a minimum of four hours of work per week. Seven former AOL volunteers are
now asking the labor department to determine if the company's practices are in
violation of the Federal Fair Labor Standards Act which requires companies
to compensate people for time spent on job-related activities that benefit
the employer.
[SOURCE: New York Times (A16), AUTHOR: Lisa Naploi]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/14aol.html)

COMPUTER AGE GAINS RESPECT OF ECONOMISTS
Issue: Economy
While the impact of the Information Revolution can be felt in workplaces and
classrooms -- from Main Street to Wall Street, scholars are still debating
the effect of technology on the economy. Through the early 1990s
productivity was nearly stagnate, leading top economist to question
technologies contribution to the economy. Starting around 1996, however,
there was a dramatic upswing in productivity growth, which nearly doubled
pace from the rates of the past two decades. Daniel Sichel, an economist at
the Federal Reserve wrote in a recent article that the nation's improved
productivity performance, is "raising the possibility that businesses are
finally reaping the benefits of information technology." The answer to the
question of whether technology is responsible for the nation's recent streak
of high growth and low inflation could have significant policy
ramifications. A problem arises from increasing difficulty in actually
assessing the impact of computer and communications on the output of the
nation's booming service sector. Erik Brynjolfsson, an associate professor
at the MIT Sloan School of Management, explains that the economic value of
speed, quality improvements, customer service and new products are often not
captured by government statistics. "We need a broader definition of output
in this new economy, which goes beyond the industrial-era concept of widgets
coming off the assembly line."
[New York Times (A1), AUTHOR: Steve Lohr]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/14tech.html)

--------------------------------------------------------------

BROADBAND
U.S. Consumers Seek Open Internet On Cable (SJ Merc)
Pulsing with Promise (USA Today)

FILM
Hollywood, Chastened By High Costs, Finds A New Theme: Cheap
(WSJ)

TELEPHONY
Telecom Italia Plan Fails To Win Support (WSJ)
How One Man Used Corporate Affermative Action in Ameritech Deal
(NTY)
Miracle of The Bells: The Simplified Phone Bill (WSJ)

JOURNALISM
Retooling Columbia Journalism Review (NYT)

BROADBAND

U.S. CONSUMERS SEEK OPEN INTERNET ON CABLE
Issue: Cable/Internet
A coalition of consumer and communications advocacy groups Friday sent a
letter to Congress asking cable television companies be prevented from
keeping exclusive control of high-speed Internet services offered over
cable. The effort came only days before a Senate Commerce Committee hearing
on Tuesday on some of the issues raised by cable Internet services. The
Federal Communications Commission looked at the issue recently and
determined it was a nascent industry and should not be regulated at this
time. The complaint by the Consumers Union, Center for Media Education, the
Media Access Project and other groups is that people who access the Internet
over ordinary telephone lines are allowed to choose any Internet service
provider, but the same rule does not apply to cable companies. Customers of
AT&T's high-speed Internet service, for example, must use AtHome Corp. as
their Internet service provider. Analysts are expecting millions will
convert to cable for Internet access as the service becomes more widely
available. Cable companies argue they need the revenues generated from
Internet services to make the price charged for high-speed access more
affordable.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/324637l.htm)

PULSING WITH PROMISE
Issue: Information Technology
Imagine transmitting information wirelessly, but not using radio waves. A
Huntsville, AL company named Time Domain is working to do just that with
radio energy, fired out at 10 million to 40 million pulses a second. The
experimental pulse technology, sometimes called ultra-wide band (UWB), can
digitally handle phone calls, data or video. The pulses carry information
or media as fast as the speediest corporate Internet connection. The pulse
technology has other advantages, including opening up the radio spectrum,
requiring much less power for transmission, and providing excellent message
security. Larry Fullerton has been working on the technology since 1976 and
got his first patent for it in 1987. It has taken off in the few years
because IBM came up with a silicon germanium chip that is great for this
application and costs little and because money has come pouring in. Time
Domain is now building prototypes. Mass-market products are still years
away. [The Web version of the story optimistically was called "Technology
Could Revolutionize Life."]
[SOURCE: USA Today (4/9/99), AUTHOR: Kevin Maney]
(http://www.usatoday.com)

FILM

HOLLYWOOD, CHASTENED BY HIGH COSTS, FINDS A NEW THEME: CHEAP
Issue: Movies
"The film industry is in a funk." With the exception of mega-hits like
"Titanic," the return on films produced has slipped to almost nothing.
According to the Motion Picture Association, the average cost of a film has
doubled since the beginning of the nineties -- from $26 million to $52 million.
The film industry is decreasing the number of films produced as well as cutting
costs, looking for financial partners to help with the bills, and putting a
halt on giving in to demands of highly paid actors, directors and writers.
After the hiring boom between 1990 and 1997 in jobs for actors to
special-effects technicians, layoffs are on the rise. "We're in a recession in
the film business, and it's having a broad impact on virtually every company in
the entertainment business," says Tom Srickler, of talent agency, Endeavor.
Disney has cut its movie budget by $500 million in the past year. According to
Rob Moore, the studio's executive vice president says that instead of trying to
go for more hits, they are trying to make sure that profits get applied to the
bottom line. Also changing the picture -- companies such as Warner and Disney
don't need to solely depend on movie profits as they have television production
arms to compensate. Stars have less leverage than they once had. For example,
Universal won't give Kevin Costner usual $20 billion for his next film, "For
the Love of the Game," He has to see how the film will sell before he gets
paid.
[SOURCE: Wall Street Journal (A1), AUTHOR: Bruce Orwell and John Lippman]
(http://wsj.com/)

TELEPHONY

TELECOM ITALIA PLAN FAILS TO WIN SUPPORT
Issue: International
Telecom Italia shareholders failed to reach quorum at a meeting on Saturday to
vote on a restructuring plan that would have fended off the takeover from
Olivetti that has been threatening for months. An Olivetti company statement
claimed victory: "[Saturday's meeting demonstrates] the lack of interest and
serious doubts in the market as to the measures Telecom's management has
proposed." Franco Bernabe, Chief Executive of Telecom Italia said, of Europe's
most hostile takeover in history, he is not giving up. He is looking for an
investor that will step in to fend off Olivetti. Two likely candidates, SBC
Communications and British Telecommunications, say they are not interested.
Olivetti Chief Executive Officer, Roberto Colaninno said they would have
walked away from the deal if Telecom Italia's restructuring deal had been
approved by shareholders.
[SOURCE: Wall Street Journal (A17), AUTHOR: Deborah Ball and Anita Raghavan]
(http://wsj.com/)

HOW ONE MAN USED CORPORATE AFFIRMATIVE ACTION IN AMERITECH DEAL
Issue: Telephony/Minorities
Georgetown Partners, a Maryland investment firm, may have benefited from
some corporate affirmative action when it received a portion of Ameritech's
wireless business. SBC Communications, which is trying to win FCC approval
for its acquisition of Ameritech, pushed for Georgetown's participation in
the deal. Some say that the Maryland company benefited from SBC's desire to
win favor with FCC chairman William Kennard, who is eager to increase
minority presence in the telecommunications industry. Jesse Jackson, who
also would like to increase minority participation in high-tech industries,
helped SBC and Ameritech develop a list of minority companies to do business
with. When asked whether being black gave him a leg up in the Ameritech
deal, Georgetown's managing director, Chester Davenport, responded: "I think
if I were white, I would own one of these damn telephone companies, OK?"
Davenport said that "all the time and money I've spent here, whatever money
I have now, if I were white...I would have 100 times more money than I have
now, OK?"
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/yr/mo/day/news/financial/davenport-race.html)

MIRACLE OF THE BELLS: THE SIMPLIFIED PHONE BILL
Issue: Telephony/Regulation
The Federal Communication Commission (FCC) is expected to propose guidelines
this week that would require phone companies to have clearer phone bills.
Despite the proliferation of services, taxes and surcharges, bills have not
been overhauled in a while. Even FCC Chairman Kennard admitted having
trouble reading his Bell Atlantic bill. Increasing the urgency for the bill
guidelines
are the 25,000 complaints the FCC received last year for "slamming" -- changing
long-distance price without customer's approval and "cramming" -- a charge for
a service not requested by the consumer. Larry Strickling, FCC chief of telecom
policy says that the new guidelines will require phone companies to clearly
state what services the customer is paying for, what company is providing those
services and whom to contact with questions. Ameritech has already launched a
new "consumer friendly" bill that reduces the number of pages, is printed on a
bigger page with larger print. Bell Atlantic is testing a new bill format as
well. Baby Bell executives say with the advent of competition, tailoring bills
to meet customer needs is a must. Bell South is also planning to revamp its
bill. They plan on using the bills as marketing tool as well. The left margin
of the bill will be used to explain new services and promotions.
[SOURCE: Wall Street Journal (B1), AUTHOR: Kathy Chen]
(http://wsj.com/)

JOURNALISM

RETOOLING COLUMBIA JOURNALISM REVIEW
Issue: Journalism
The publisher of the Columbia Journalism review, since 1988 will step down on
July 1 and David Laventhol, former publisher of the Los Angeles Times, editor
of Newsday and president of Times Mirror will come on. Tom Goldstein, dean
of Columbia University's Graduate School of journalism says this hire is a step
toward shifting the focus of the media criticism magazine. He says that
journalism has changed since the advent of the magaine in 1962 and the
proliferation of popular media criticism on the Internet and magazines like
Brill's Content, has persuaded Columbia Journalism Review to rethink their
magazine. Goldstein says ideas include, a Web presence, change in size and
frequency.
[SOURCE: New York Times (C8), AUTHOR: Alex Kuczynski and Felicity Barringer]
(http://www.nytimes.com/yr/mo/day/news/financial/media-talk.html)

--------------------------------------------------------------