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Communications-related Headlines for 9/4/98

ADVERTISING
Giant Sponsors Plan to Clean Up TV (WSJ)

INTERNET
Internet Over Cable: Defining the Future In Terms of the Past (FCC)
New Web Resource Packages Campaign Data for the Voter (CyberTimes)

LONG DISTANCE
FCC Consumer Alert: Don't Hang Up on Dial-Around (FCC)

RADIO
Keeping the Local in Local Radio (FCC0

MERGERS
Indiana Opens Investigation of SBC-Ameritech Merger (TelecomAM)

ANTITRUST
Microsoft Ordered to Provide More Antitrust Evidence (NYT)

============
ADVERTISING
============

GIANT SPONSORS PLAN TO CLEAN UP TV
Issue: Television/Advertising
Madison Avenue has embarked on a crusade to clean up network TV programming.
Some of the world's biggest advertisers have joined together in hopes of
influencing the networks to air more family-oriented shows. The Forum for
Responsible Advertisers, which includes Procter & Gamble Co., Johnson &
Johnson, Coca-Cola Co., Sears, Roebuck & Co., and Ford Motor Co., plans to
hold its first meeting in New York later this month. While advertisers claim
to be in search of more wholesome programs, adult-oriented shows like "Friends"
and "Just Shoot Me" continue to draw more advertising dollars than network
shows with strong family or religious themes.
[SOURCE: Wall Street Journal (B1, B5), AUTHOR: Brian Stenberg and Tara
Parker Pope]
http://wsj.com/

========
INTERNET
========

INTERNET OVER CABLE: DEFINING THE FUTURE IN TERMS OF THE PAST
Issue: Cable/Internet
FCC Staff Working Paper on Regulatory Categories and the InternetThe FCC's
Office of Plans and Policy (OPP) today released a staff working paper
analyzing the policy issues raised by the delivery of Internet-based
services over cable television systems. OPP Working Paper No. 30, "Internet
Over Cable: Defining the Future in Terms of the Past," was written by
Barbara Esbin, Associate Bureau Chief of the Cable Services Bureau, in
conjunction with OPP. Periodically, OPP issues working papers on emerging
areas in communications; these papers represent individual views and are not
an official statement by the FCC or any FCC commissioner.[SOURCE: FCC]
http://www.fcc.gov/Bureaus/OPP/News_Releases/1998/nrop8001.html
http://www.fcc.gov/Bureaus/OPP/working_papers/oppwp30.wp,
http://www.fcc.gov/Bureaus/OPP/working_papers/oppwp30.pdf

NEW WEB RESOURCE PACKAGES CAMPAIGN DATA FOR THE VOTER
Issue: Internet
The Center for Responsive Politics http://www.crp.org has launched a new
resource on the Web that makes it easier to find detailed campaign finance
info on any congressional candidate in the country. "The real idea here is
to spread the power, on the assumption that information is power and there
is too much of it in Washington and not enough everywhere else" said Larry
Makinson, executive director of the organization. "Every contribution that
comes in to a candidate or political party, we try to categorize it by
industry. Then we try to translate that," Makinson said. "We try to see what
the patterns are. Because if you really want to understand what politicians
are going to do after they are elected, find out who is paying for their
campaign."
[SOURCE: New York Times (CyberTimes), AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/98/09/cyber/articles/04campaign.html

=============
LONG DISTANCE
=============

FCC CONSUMER ALERT: DON'T HANG UP ON DIAL-AROUND
Issue: Long Distance
As of September 1, 1998, the transition to expanded access codes will be
complete. Consumers are reminded that, to make a "dial around" call, they
must dial an additional "10" before the access code (i.e. 10-xxx is now
10-10-xxx). Access codes enable callers to use a long distance company other
than the company the phone is programmed to use automatically for placing
long distance and local toll calls.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/Factsheets/da981736.html

=====
RADIO
=====

Keeping the Local in Local Radio
Issue: Radio
"Certainly when the 1996 Telecommunications Act was passed, most of the
focus was on telephone and video. But while those markets haven't changed as
much as people predicted, radio is another story. In radio, the '96 Act has
had a clear and dramatic impact. The '96 Act made two key changes: it
eliminated the cap on the number of radio stations companies could own
nationally, and it raised the limit on the number of stations that could be
owned in local markets. Those two changes set off an unprecedented wave of
consolidation that has dramatically reshaped the radio industry."
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Tristani/spgt811.html

=======
MERGERS
=======

INDIANA OPENS INVESTIGATION OF SBC-AMERITECH MERGER
Issue: Mergers
The Indiana Utility Regulatory Commission will open an investigation of the
proposed merger of Ameritech into SBC Communications. Competitors and
consumer interest groups are concerned about the effects of the deal on
telephone competition, employment levels, service quality and rates.
September 14 is the deadline for intervening parties to register and file
questions they want the companies to answer, and a September 30 deadline for
questions from the commission staff. All three of the Ameritech states with
jurisdiction over the merger -- Illinois, Ohio and Indiana -- have formal
investigations underway.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

=========
ANTITRUST
=========

MICROSOFT ORDERED TO PROVIDE MORE ANTITRUST EVIDENCE
Issue: Antitrust
U.S. District Court Judge Thomas Penfield Jackson has ordered Microsoft to
give the Department of Justice additional evidence in the antitrust case.
The software giant threatened to ask for a six-month delay if it was forced
to defend itself against the new evidence. The DOJ countered by saying it is
common and only natural to come upon new evidence during pretrial discovery.
[SOURCE: New York Times (C4), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/04microsoft.html

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We are outta here. Have a great holiday weekend and we'll see you *Tuesday*.
Any bets Mark gets the recond by then?

Communications-related Headlines for 9/3/98

DIGITAL TV
Advisory Committee on Public Interest Obligations of
Digital Television Broadcasters (NTIA)

INTERNET
Internet Child Porn Ring Raided (WP)
Internet Child Pornography Ring is Raided in the U.S. and
Abroad(NYT)
U.S., 13 Countries Launch Crackdown on Alleged Internet
Pedophile Group (WSJ)
Child porn fighters bust Internet ring (ChiTrib)
Don't Unleash the Cyber-Censors on Libraries (ChiTrib)
Desperately Seeking Susan OR Suzie NOT Sushi

ARTS
Seeking Revolutionaries at Digital Art Conference (CyberTimes)

MERGERS
Connecticut Regulators Approve SBC's Purchase of SNET (TelecomAM)

NEWSPAPERS
Newspapers in Detroit are Ordered to Rehire Workers From
Strike (WSJ)

=========
DIGITAL TV
==========

ADVISORY COMMITTEE ON PUBLIC INTEREST OBLIGATIONS OF
DIGITAL TELEVISION BROADCASTERS
Issue: Digital TV
The location and a preliminary agenda for the September 9 meeting of the
Advisory Committee on Public Interest Obligations of Digital Television
Broadcasters are now available. The meeting will be broadcast via the Internet.
[SOURCE: NTIA]
http://www.ntia.doc.gov/pubintadvcom/sepmtg/

========
INTERNET
========

INTERNET CHILD PORN RING RAIDED (WP)
INTERNET CHILD PORNOGRAPHY OPERATION IS RAIDED IN U.S. AND ABROAD (NYT)
U.S., 13 COUNTRIES LAUNCH CRACKDOWN ON ALLEGED INTERNET PEDOPHILE GROUP (WSJ)
CHILD PORN FIGHTERS BUST INTERNET RING (ChiTrib)
Issue: Internet/Content
Yesterday, law enforcement agents in the U.S. and 13 other countries
launched a massive crackdown on an alleged international Internet pedophile
ring. U.S. custom officials served warrants to 32 of the 200 suspected
members of "Wonderland", an online club where pornographic material is
distributed and traded. Agents say that the "digital age has made it much
easier to commit crimes like child pornography, money-laundering and
intellectual property theft, while erasing traditional borders between
nations."
[SOURCE: Washington Post (A1), AUTHOR: Michael Grunwald ]
http://www.washingtonpost.com/wp-srv/WPcap/1998-09/03/071r-090398-idx.html
[SOURCE: New York Times (A21), AUTHOR: David Stout]
http://www.nytimes.com/library/tech/98/09/biztech/articles/03porn.html
[SOURCE: Wall Street Journal (B8), AUTHOR: John Simons ]
http://wsj.com/
[SOURCE: Chicago Tribune (Sec1, p.3), AUTHOR: Naftali Bendavid]
http://chicagotribune.com/textversion/article/0,1492,ART-14077,00.html

DON'T UNLEASH THE CYBER-CENSORS ON LIBRARIES
Issue: Libraries/Internet Regulation
The successful politician knows how to pick enemies. Senators voting for the
Internet School Filtering Act might have thought they were picking a fight
with Larry Flint or Bob Guccione -- what they're getting is Carolyn Anthony,
director of the Skokie Public Library and president-elect of the Illinois
Library Association. The bill requires schools and libraries receiving
federal Internet subsidies to install filtering software to block children's
access to inappropriate material. But lawmakers seem unaware that librarians
have been dealing with this problem for years. ALA opposes the legislation
because it will censor material that is constitutionally protected. Chapman
writes in his column that the rise of the Internet does not diminish the
wisdom of local control. "What gives [Sen] John McCain [the bill's chief
sponsor] the idea that he's better able to handle this problem than Carolyn
Anthony? And why would anyone
believe him?"
[SOURCE: Chicago Tribune (Sec 1, p.25), AUTHOR: Steve Chapman]
http://chicagotribune.com/textversion/article/0,1492,SAV-9809030094,00.html

DESPERATELY SEEKING SUDAN *OR* SUZIE *NOT* SUSHI
Issue: InfoTech
Of Internet search engines Danny Sullivan, editor of the Search Engine Watch
newsletter www.searchenginewatch.com, says "They've gotten better, faster
and easier to use, but search engines have got a long way to go. They're
poor for people who are doing really basic searches. Enter 'Disney' or
'travel,' and it's a crapshoot whether they'll get the Disney site or any
good travel sites." No two search engines are the same. There are three
components to each one: the index of Web sites it searches, how often that
index is updated and the algorithm used to sort results. The article
examines 11 search sites and provides tips for getting the best results for
searches. [Try searching "Taglang" and see if you find the 1999 CRH-staff
calendar]
[SOURCE: New York Times (D1), AUTHOR: Matt Lake]
http://www.nytimes.com/library/tech/98/09/circuits/articles/03sear.html

====
ARTS
====

Seeking Revolutionaries at Digital Art Conference
Issue: Arts
At a time when electronic art is struggling to penetrate the fortress of the
cultural establishment, the theme of the International Symposium on
Electronic Art is "Revolution." (Well, you know, everyone wants to paint the
world) About 700 artists and academics, plus the occasional capitalist tool,
are expected to attend the ninth ISEA, where they will hear dozens of
lectures on topics such as "Computer-Generated Photography and the
Neoclassical Sensibility," "Why Bring the Virtual World Onto the Classical
Stage?" and "Things That Go Ping." "If there is a revolution happening, it's
a much less visible and celebrated revolution" than the social revolutions
of the 60's, Eddie Berg, director of Liverpool's Foundation for Art &
Creative Technology said. "I think we're living through a period of
self-doubt and questioning and uncertainty, which is reflected by artists as
well. People say this is pre-millennial tension, but it's been there for a
while." Some related URLs: http://www.isea98.org/,
http://www.fact.co.uk/, http://www.net-art.org/, and
http://www.isea.qc.ca/
[SOURCE: New York Times (CyberTimes), AUTHOR: Matthew Mirapaul
mirapaul( at )nytimes.com]
http://www.nytimes.com/library/tech/98/09/cyber/artsatlarge/03artsatlarg...

=======
MERGERS
=======

CONNECTICUT REGULATORS APPROVE SBC'S PURCHASE OF SNET
Issue: Mergers
On September 2, the Connecticut Department of Public Utility Control (PUC)
unanimously approved SBC's $4-billion purchase of Southern New England
Telephone (SNET). The agency said SBC meets the criteria to run a utility in
the state and accepted promises the company made to "serve the interests of
its customers, it employees and its community." Regulators rejected
objections by the state's attorney general. Attorney General Richard
Blumenthal urged regulators to require SBC to
reduce rates to reflect merger synergies. But regulators said they "can find no
requirement that rates must be a consideration." AG Blumenthal had told the
PUC that requiring the companies to pass on the merger's synergies to
consumers would decrease basic local phone rates by $4 per month.
Connecticut is the only state in the country whose consumers will not share
the cost savings associated with an SBC takeover of a local phone company,
he said.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

===========
NEWSPAPERS
===========

NEWSPAPERS IN DETROIT ARE ORDERED TO REHIRE WORKERS FROM STRIKE
Issue: Labor/Newspapers
The National Labor Relations Board (NLRB) ordered the Detroit News and
Detroit Free Press to rehire hundreds of striking workers and pay them back
wages. In the ruling announced on Tuesday, the NLRB found that the papers
had not bargained in good faith and helped cause the walkout. Nearly 2,500
workers, belonging to six different unions, walked off the job in July after
the break down of negotiations about company plans to reduce the number of
union jobs at the two papers.
[SOURCE: Wall Street Journal (A6), AUTHOR: Wall Street Journal Staff
Reporter ] September 2
http://wsj.com/

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Communications-related Headlines for 9/2/98

INTERNET
Protest Portal Unites Activists Under One URL (CyberTimes)
Get Off Internet, Get Involved is Daley's Volunteerism Push
(CyberTimes)

MERGERS
California Regulators Approve MCI-WorldCom Merger (TelecomAM)
Austrian Bid Shows Ameritech's Freedom (ChiTrib)

ANTITRUST
U.S. Faults Depositions of Microsoft's Executives (NYT)
U.S. Adds To Case vs. Microsoft and Gates (WSJ)

TELEVISION/VIDEO
TV Programmers Drop 'Black-Block' Lineups (WSJ)
Video Stores: Are They Headed To The Bottom? (WP)

========
INTERNET
========

PROTEST PORTAL UNITES ACTIVISTS UNDER ONE URL
Issue: Online Activism
We're here. We're digital. Get used to it. Political organizers had hailed
the Internet as a great potential tool. But the grim reality was that you
can't find an audience if you don't have a catchy URL, a fat publicity
budget or a major Web site to carry your link. Evan Henshaw-Plath has
created Protest.Net http://www.protest.net/ to provide a central source of
information about current issues and upcoming events. "It's like finding the
protest du jour," said David Ronfeldt, senior social scientist at the RAND
Corporation. "Folks across the conflict spectrum are resorting to network
strategy and technology to help dispersed individuals link up and act
jointly. This Web
site fits that model."
[SOURCE: New York Times (CyberTimes), AUTHOR: Bob Tedeschi]
http://www.nytimes.com/library/tech/98/09/cyber/articles/02protest.html

GET OFF INTERNET, GET INVOLVED IS DALEY'S VOLUNTEERISM PUSH
Issue: Offline Activism/Volunteerism
Chicago Mayor Richard Daley thinks some of us are spending just a little too
much time with our computers. "If people took 20 percent off the time on the
computer and helped a child it would be amazing," he declared. "You wouldn't
know what to do with all the volunteers." Warming further to the subject,
Daley added, "I think people have to get out of their homes and off
computers and start listening to people and working with younger people.
That is my personal opinion." Mayor Daley was at an event celebrating $1.7
million in corporate contributions for good causes by Allstate Insurance.
[SOURCE: Chicago Tribune (Sec 2, p.6), AUTHOR: Gary Washburn]
http://chicagotribune.com/textversion/article/0,1492,SAV-9809020113,00.html

=======
MERGERS
=======

CALIFORNIA REGULATORS APPROVE MCI-WORLDCOM MERGER
Issue: Mergers
The California Public Utility Commission (PUC) has unconditionally approved
the MCI-WorldCom merger: "On balance, [the merger] is in the public
interest." The PUC also ruled that it cannot require MCI-WorldCom to pass on
merger savings to consumers because it does not have such authority over
traditionally unregulated companies. The Federal Communications Commission
is one of the few regulatory bodies that still needs to rule on the $37
billion deal. The FCC is expected to approve the deal -- as early as this week.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

AUSTRIAN BID SHOWS AMERITECH'S FREEDOM
Issue: Ownership/Mergers
Ameritech has announced a bid to acquire 25% of Austria's phone company. The
move "demonstrates the Chicago firm's commitment to acting independently
despite its pending takeover by SBC Communications Inc," Van reports. The
proposed merger could take as long as one year and in the meantime,
Ameritech would follow its own strategies -- including expanding its
European holdings. Ameritech has found success in buying minority interests
in European phone monopolies and using its expertise to improve performance.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9809020334,00.html

=========
ANTITRUST
=========

U.S. FAULTS DEPOSITIONS OF MICROSOFT EXECUTIVES (NYT)
U.S. ADDS TO CASE VS. MICROSOFT AND GATES (WSJ)
Issue: Antitrust
The antitrust case against Microsoft is scheduled to go to trial on
September 23. After the software giant recently requested that the case be
dropped, the Department of Justice has submitted new evidence and asserted
that Microsoft executives are showing "an astonishing lack of recall."
"Executives who are stated to be the author of documents claim not to
remember writing them," government lawyers wrote. "Executives who are the
stated recipients of documents claim not to remember receiving them. And
both authors and recipients claim not to know what the documents mean." [Is
this so extraordinary? Happens in my office all the time.] The new evidence
includes allegations that Microsoft bullied competing companies including
Intel, Apple, Real Networks, and Intuit.
[SOURCE: New York Times (C1), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/98/09/biztech/articles/02microsoft.html
[SOURCE: Wall Street Journal (A3), AUTHOR: John Wilke and Don Clark]
http://wsj.com/

================
TELEVISION/VIDEO
================

TV PROGRAMMERS DROP 'BLACK -BLOCK' LINE UPS
Issue: Minorities/ Television
This season, African-American viewers will have to look a little harder to
find shows targeted at black audiences. Of the top-20 shows among blacks
last season, only 13 will be appearing this fall. The reported cause of the
programming change is that these show are no longer drawing the numbers they
were just a few years ago. While the No.1 black show in 1994, "Living
single," drew about 8.5 million households each week, last year's top black
show, "Between Brothers," only had about 4.9 million viewers each week.
Programmers are hopping that new shows with leading black characters in
racially integrated context, such as this fall's pilot sitcom depicting a
black man living in the Lincoln White House, will regain some of the
declining viewership.
[SOURCE: Wall Street Journal (B1), AUTHOR: Leon Wynter]
http://wsj.com/

VIDEO STORES: ARE THEY HEADED TO THE BOTTOM?
Issue: Video/Business
The video release of the film "Titanic" has caused speculation on more than
the fall of Western civilization. The next generation of home video,
called "video-on-demand," offers viewers the ability to order the
three-hour epic from home, whenever they choose to view it, without braving
lines of screaming teenage girls. It even offers "pause" and "rewind"
functions. "In seven years, you're going to see a significant erosion of
video rentals [from stores]," says Julie Wainwright of www.reel.com, an
Internet video sales and rental service, "If you fast-forward,
video-on-demand is where the industry is going." Not everyone in the
industry is sold on the new technology. "Just the fact that technology
exists to do something doesn't mean the studios are anxious to migrate to
it," says Larry Gebrandt, senior analyst with Paul Kagan Associates, a
media research and consulting group.
[SOURCE: Washington Post (p.D1), AUTHOR: Frank Ahrens]

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Communications-related Headlines for 9/1/98 (Happy September)

INTERNET
Congress Aims to Wrap Up Internet Issues (NYT)
New Twist to Free Email (NYT)

TELEPHONE REGULATION
Access Charge Referendum Makes it to Nebraska November Ballot
(TelecomAM)

LABOR/JOBS
Strike Apparently Settled, Workers Return to US West (NYT)

========
INTERNET
========

CONGRESS AIMS TO WRAP UP INTERNET ISSUES
Issue: Internet Legislation
A search of the government's online legislative library shows that 324 bills
with the word "Internet" have been filed in the 105th Congress, compared to
just 75 the previous session. While most of these bills will be forgotten
after adjournment in October, on Internet taxes, indecency, junk e-mail,
gambling and copyright protections may be voted on and passed. The final
decisions could come in late-night conference committee meetings or with
bills being quietly attached as amendments to unrelated legislation. "We're
into sausage making at its most gruesome," said Jim Dempsey, senior staff
counsel for the Center for Democracy and Technology, a nonprofit public
interest organization based in Washington, D.C. The Clinton Administration
and industry officials are optimistic about being able to finish work on
three key pieces of legislation: the Internet Tax Freedom Act, the Digital
Millennium Copyright Act and legislation to set national standards for
tamper-resistant digital signatures. "The first two ought to pass," said
Ira C. Magaziner, President Clinton's top Internet adviser. "If we can get
all three, that would be very good." See the article for a run down on the
other pending legislation.
[SOURCE: New York Times (CyberTimes), AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/98/09/cyber/articles/01congress.html

NEW TWIST TO FREE EMAIL
Issue: Online Services
Web sites that offer free email services are becoming commonplace on the
Internet. Now, a few services aim to add even more portability to the free
e-mail concept, allowing users to retrieve their messages from anywhere they
can pick up a phone. New advertiser-supported services allow phone access to
email -- the e-mail is read in a robotic voice by speech-synthesis software,
and users can dictate a response. For more info see Planetary Motion
http://www.planetarymotion.com/ and CollegeClub http://www.collegeclub.com/
[SOURCE: New York Times (CyberTimes), AUTHOR: Peter Wayner wayner( at )nytimes.com]
http://www.nytimes.com/library/tech/98/09/cyber/articles/01voice.html

====================
TELEPHONE REGULATION
====================

ACCESS CHARGE REFORM REFERENDUM MAKES IT TO NEBRASKA NOVEMBER BALLOT
Issue: Telephone Regulation
The Committee To Vote Yes For Lower Nebraska Phone Bills said it has enough
signatures to ensure that voters can vote on access charge reform in the
November election. Nebraska's 16-cent per minute intrastate access charge is
the highest in the nation, said the group, and the campaign for reform has
received a tremendous response from the public. The referendum would allow
Nebraska's Public Service Commission to regulate intrastate access charges
of the three largest telcos in the state -- US West, GTE and Aliant -- and
would require that access charges be based on forward-looking costs. The
Committee is sponsored by AT&T.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

==========
LABOR/JOBS
==========

STRIKE APPARENTLY SETTLED, WORKERS RETURN TO US WEST
Issue: Labor/Jobs
US West and the Communications Workers of America (CWA) have reached a
tentative agreement which returned striking members to work. The agreement
means gains in pay and benefits for the workers and allows for a voluntary
pay-for-performance program. The agreement needs to ratified by the 34,000
members of the union. "CWA is probably doing better than any union in the
country," said Gregory Tarpinian, executive director for the Labor Research
Association, a New York consulting company for unions. "They have a
tremendous amount of leverage because most of the telecom companies
downsized in the mid-80s and early '90s. They are left with pretty lean
operations." At US West, the number of employees dropped to 53,000 on
Monday, from 66,000 in 1984, the year of the company's creation. Faced with
a tight labor market and an increasingly competitive business environment,
US West agreed to wage increases of 10.9 percent over three years, slightly
above inflation forecasts.
[SOURCE: New York Times (A17), AUTHOR: James Brooke]
http://www.nytimes.com/yr/mo/day/news/national/uswest-strike.html

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Communications-related Headlines for 8/31/98

TELEVISION
Few Bidders for Networks Despite Good Curb Appeal (NYT)
Get Big or Get Out (B&C)
Can Football Revive CBS and Restore Its Glory Days? (NYT)
Advertising: In N.F.L. Ad War, Sponsors Playing Tough Defense (NYT)
The Return of Family Television (ChiTrib)
Ameritech Gets with Local Connections Program (B&C)

INTERNET
Few Federal Web Sites Observe Federally Proposed Privacy Rules (NYT)
Patents: Plain-English Internet Searching (NYT)
Software for Blocking Web Ads Has a Need -- To Advertise (ChiTrib)
New Wireless Effort Hits Hurdles (ChiTrib)

CAMPAIGN FINANCE REFORM
Campaign Reform's Next Hurdle (NYT)

ANTITRUST
Signs Show 'Wintel' Axis Is Beginning to Wobble (NYT)
US May Seek to Expand Evidence in Microsoft Case (NYT)

LABOR/EMPLOYMENT
US West, Union Reach Agreement (WP)

JOURNALISM
A Publishers Presses His Point (WP)

SATELLITE
Echo Star gets Local OK (B&C)

==========
TELEVISION
==========

FEW BIDDERS FOR NETWORKS DESPITE GOOD CURB APPEAL
Issue: Television Economics
Audiences continue to defect to cable and programming costs continue to rise
-- the future of network television seems uncertain. But despite constant
rumors, there have been no bidders for CBS or GE's NBC. "There are new
advantages ever since the Federal Communications Commission allowed network
companies to own their programming and share in the sale of rerun rights,"
said David Londoner, an analyst at Schroder & Co. "In this market, everybody
talks to everybody else. And sure, anyone would love to buy them at the
right price. But you could drive a truck between the bid and the ask."
Howard Anderson, president of the Yankee Group, a consulting firm in Boston,
added: "Owning networks ain't what it used to be. When the prime-time
players had 85 percent of the prime-time audience, you were buying into a
monopoly. Now they are at 50 percent market share. There is sticker shock
over advertising prices. And the Internet is eating away at the youth
market." What's more, Anderson said, "companies have proven that they can
launch their own networks for far less money." While television stations and
cable service make a lot of money, broadcast networks typically yield only
about 10% at best. At worst, they lose money (see CBS story).
[SOURCE: New York Times (C6), AUTHOR: Geraldine Fabrikant]
http://www.nytimes.com/yr/mo/day/news/financial/network-bidders.html

GET BIG OR GET OUT
Issue: Television/ Ownership
Longtime Sacramento Broadcasters, the Kelly family, has just sold last of
it's broadcast operations for $900 million. Kelly Broadcasting was founded
in 1945 by advertising executive Gene Kelly, and is now run by his
grandsons. While Kelly's Sacramento TV station KCRA-TV has been a local
leader for years, it had become increasingly difficult for small
broadcasters to compete for programming. "I lost five out of six shows and
didn't even get to the table," said KCRA station manager Greg Kelly. "We had
to get big or get out, and we were not in a position to get big,"
[SOURCE: Broadcasting&Cable (p.10, 11), AUTHOR: John Higgins]
http://www.broadcastingcable.com/

CAN FOOTBALL REVIVE CBS AND RESTORE ITS GLORY DAYS?
ADVERTISING: In N.F.L. Ad War, Sponsors Playing Tough Defense
Issue: Television Economics
CBS's eight-year, $4 billion deal to broadcast National Football League
games has been and will be closely scrutinized. The price tag is 100% more
than what NBC had been paying for the same package. Executives at CBS are
relying on football to boost profits -- the network has losing $50-$100 per
year for the last few years. But critics -- mostly at NBC -- say that the
deal is financially irresponsible and predict CBS will begin losing $100
million to $150 million a year on football alone. CBS sees football
attracting the young male audience -- which had been leaving the network of
late -- and boosting its ratings for prime time shows. In Elliott's column
we learn that although network executives wanted to charge 25-30% more for
ad time during football games this year, the ad agencies held firm and will
pay no more that 8-10% more for spots. The message: we're not going to pay a
lot for this season.
[SOURCE: New York Times (C1), AUTHOR: Bill Carter]
http://www.nytimes.com/yr/mo/day/news/financial/cbs-nfl-media.html
[SOURCE: New York Times (C7), AUTHOR: Stuart Elliott]
http://www.nytimes.com/yr/mo/day/news/financial/fbn-ad-column.html

THE RETURN OF FAMILY TELEVISION
Issue: Television
With the big networks fighting over adult viewers, new outlets like Pax TV
are trying to find a niche for family viewing. At 11:00am today, Pax TV
(formerly Pax Net) will start broadcasting. "Along with the new Fox Family
Channel and new programming initiatives on Nickelodeon and the Disney
Channel, it is one of a number of TV outlets looking to fill the void in
family viewing as the traditional networks have turned toward the young
adult market," Johnson reports. Bud Paxson's network -- which will reach
50-75 million households, will be the nation's 7th broadcast network:
"Parental Discretion Unnecessary" is one of the network's ad slogans.
[SOURCE: Chicago Tribune (Sec 5, p.1), AUTHOR: Steve Johnson]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808310033,00.html

AMERITECH GETS WITH LOCAL CONNECTIONS PROGRAM
Issue: Cable
Ameritech's cable system, americast, has launched a free text information
service in the Columbus, Ohio market. Local Connections, as its called, will
offer local information ranging from movie times to weather forecasts on 49
channels. Ameritech is hoping the local information channels will give them
an edge over cable competitors Time Warner and Insight Communications.
[SOURCE: Broadcasting&Cable (p.43), AUTHOR: Price Colman]
http://www.broadcastingcable.com/

========
INTERNET
========

FEW FEDERAL WEB SITES OBSERVE FEDERALLY PROPOSED PRIVACY RULES
Issue: Privacy
The Clinton Administration does not practice what it preaches when it comes
to online privacy. The Federal Trade Commission recently criticized business
sites for failing to post privacy information or help protect children --
many of the Government's sites fail on these fronts as well. "It's really a
matter of practicing what they preach," said David Banisar, senior policy
analyst and staff counsel at the Electronic Privacy Information Center, a
public interest research group in Washington. "They have been pushing notice
and consent, and they can't even do it themselves. They really have a dismal
record on this." Clausing reports, "The White House Web site provides links
to 70 Web sites of federal agencies, Cabinet departments and White House
offices and commissions. Of those 70 sites, only 12 had posted privacy
policies as of Friday afternoon. That amounts to 17 percent of the sites
surveyed, only slightly better than the 14 percent of commercial sites that,
according to the FTC's report, had clearly posted privacy policies earlier
this year."
[SOURCE: New York Times (C1), AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/98/08/cyber/articles/31privacy.html

PATENTS: PLAIN-ENGLISH INTERNET SEARCHING
Issue: InfoTech/Internet
Kathleen Dahlgren, a computational linguist, and her colleague, Edward
Stabler, have received a patent for Inquizit, a natural-language based
Internet searching tool. The system retrieves and stores information in much
the way that people talk. "We model the way people interpret the meanings of
a word -- through context," Ms. Dahlgren said. "We search on meaning by
using grammar and structure and semantics. Every word has associated with it
a set of beliefs." Thus, Ms. Dahlgren said, a query such as "What kinds of
wood are bats made of?" would probably yield documents having to do with
baseball bats and hickory.
[SOURCE: New York Times (C2), AUTHOR: Teresa Riordan]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/31patents.html

SOFTWARE FOR BLOCKING WEB ADS HAS A NEED--TO ADVERTISE
Issue: Advertising/Internet
New software is available that prevents ads being displayed on a Web page.
Few people are using the programs yet, but some are concerned -- especially
since ~$1 billion a year is spent to advertise to the roughly 71 million
Americans on the Internet. "This is now a mass medium, and I ask you, who's
going to pay for it?" asked Bob Colvin, who runs Interactive Media Partners,
an ad consulting firm. "It's not subscription fees, and it sure isn't going
to be the government. It's got to be the advertising." Ad-blockers also stop
"cookies" -- the files sites use to chronicle consumers' surfing habits.
"Because they're getting it free, are they obligated?" said Beth Snyder, who
writes about on-line ads for Advertising Age magazine. "That's kind of a
philosophical question. Do you owe anybody anything?" Interested in the
software? See AdWipe, JunkBusters www.junkbusters.com, AtGuard
www.atguard.com, and Internet Mute www.intermute.com.
[SOURCE: Chicago Tribune (Sec 4,p.2), AUTHOR: Associated Press]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808310005,00.html

NEW WIRELESS EFFORT HITS HURDLES
Issue: Internet Access/Wireless/Role of Local Government
Chicago is the next target area for Metricom's wireless Internet access.
Metricom attaches small radio units to the tops of light poles to provide
data transmission. The firm is working out agreements with local and county
officials and power company managers. Local governments are considering
hiring consultants to advise them. The worry: that a town signs a deal for
less money than the town down the road.
[SOURCE: Chicago Tribune (Sec4, p.3), AUTHOR: Mitch Martin & Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808310008,00.html

=======================
CAMPAIGN FINANCE REFORM
=======================

CAMPAIGN REFORM'S NEXT HURDLE
Issue: Campaign Fiance Reform
The Senate returns to Washington this week, focused on the Clinton scandal.
But most Americans think his moral values are the same or better than that
of most politicians. "There is one very big thing that Congress can do to
restore voter confidence, and that is to finish the job of overhauling the
campaign fund-raising system, eliminating "soft money" and other abuses that
undermine the integrity of American politics," the editorial states. The
House passed the Shays-Meehan bill earlier in August, Americans want it, and
a majority of the Senate supports it. But a campaign reform bill may never
be voted on in the Senate because Trent Lott, the majority leader, and Mitch
McConnell (R-Kentucky) will frustrate popular will with a filibuster. "All
that is needed is eight Republican votes to shut off the filibuster that
Lott and McConnell are sure to engineer this month. The responsibility for
finding those votes falls on Senators John McCain of Arizona and Russell
Feingold of Wisconsin, who championed the cause earlier this year and now
must pick it up again. Is it too much to ask that this Congress, on the eve
of the next century, return to the spirit that has fired reformers since the
beginning of this century?"
[SOURCE: New York Times (A18), AUTHOR: NYT Editorial Staff]
http://www.nytimes.com/yr/mo/day/editorial/31mon1.html

=========
ANTITRUST
=========

SIGNS SHOW 'WINTEL' AXIS IS BEGINNING TO WOBBLE
US MAY SEE TO EXPAND EVIDENCE IN MICROSOFT CASE
Issue: Antitrust
As part of the antitrust suit against Microsoft, the Dept of Justice (DOJ)
has obtained documents that show the deep frustration of Intel executives
with pressure from Microsoft's Bill Gates. The alliance between Microsoft
Windows and Intel computer chips -- the "Wintel" duopoly -- may be
unraveling. Intel is already feeling heat from rival chip makers Advanced
Micro Devices and National Semiconductor. Microsoft is seeking new partners
like Matsushita, and the growth in the industry is in consumer electronics
like cellular phones and hand-held personal digital assistants -- markets in
which neither Microsoft or Intel wield much influence. In a related story,
Lohr reports that the DOJ and 20 states may ask a Federal judge to admit new
evidence in the Microsoft antitrust case. Investigators are trying to find
out if the software giant used its market power to try to limit competition
in segments of the emerging market for Internet software. They are looking
at Microsoft's dealings with Intel, Apple, and Real Networks.
[SOURCE: New York Times (C1), AUTHOR: John Markoff]
http://www.nytimes.com/library/tech/98/08/biztech/articles/31chip.html
[SOURCE: New York Times (C4), AUTHOR: Steve Lohr]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/31microsoft.html

==================
LABOR/EMPLOYMENT
==================

US WEST, UNION REACH AGREEMENT
Issue: Labor/ Telephony
Members of the Communication Workers of America employed by US West are
expected to return to work today after 15 days of striking. About 34,000
union members in 13 states went on strike after the break down of
negotiations regarding forced overtime, health-care benefits and a
performance based pay proposal. Federal Mediator Jim Mahon helped the two
sides in reaching the tentative agreement that ended the first strike in US
West's 14-year history.
[SOURCE: Washington Post (p.A7), AUTHOR: News Services]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/31/134l-083198-idx.html

===========
JOURNALISM
===========

A PUBLISHER PRESSES HIS POINT
Issue: Journalism
Frank Blethem, millionaire Seattle business man has recently launched a
media campaign, including a series of ads in the Seattle Times, advocating
the abolition of the estate tax. The only problem is that Blethem also
happens to the publisher of that very same paper. "The appearance of a
conflict of interest is real," concedes the Time's executive editor Michael
Fancher. "There is no actual conflict of interest," he contends, "because I
know that it's not going to affect our reporters." Blithe, himself aware of
the problematic appearance, explains that "the family feels that's the way
to use our voice. We can't use [news columns in] the newspaper because of
our insistence that the newspaper be independent." The issue raises
difficult questions about how far newspaper publishers can go in expressing
political viewpoints.
[SOURCE: Washington Post (C1,C4), AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/31/080l-083198-idx.html

=========
SATELLITE
=========

ECHOSTAR GETS LOCAL OK
Issue: SatelliteT.V.
The Federal Communications Commission has given satellite TV distributor
EchoStar permission to enter four new western markets, while waving the
requirement to serve Alaska and Hawaii too. EchoStar plans to offer local
broadcast signals to "underserved' (those unable to receive broadcasts 50%
of the time) subscribers in western states. Satellite services like EchoStar
are hoping that Congress will eventually change the law that prevents them
from providing local signals to subscribers who can receive those signals
over the air. Some members of congress have expressed the belief that
allowing satellite carriers to distribute local signals may be the best way
to encourage competition that would force down cable rates.
[SOURCE: Broadcasting&Cable (p.17), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
Way to go Tom's River!

Communications-related Headlines for 8/28/98

INTERNET
AOL at 13 Million: Finally A 'Mass Market' (CyberTimes)
AOL Passes 13 Million Subscribers (Telecom AM)
Patent for Online Patents (CyberTimes)

MERGERS/RADIO
Riding Radio Merger Wave, Chancellor Will Buy Capstar (NYT)
CBS Plans Spinoff to Bolster it's Stock (ChiTrib)
Intermedia Forsees Additional Deals To Provide Data Service To Baby
Bell (WSJ)

FCC
Telecom Officials Complain of FCC Slowdown (Telecom AM)

========
INTERNET
========

AOL PASSES 13 MILLION SUBSCRIBERS (Telecom AM)
AOL AT 13 MILLION: FINALLY A 'MASS MARKET'?(CyberTimes)
Issue: Issue: Online Services
America Online (AOL) announced Aug. 27 that it had exceeded 13 million
members worldwide. AOL's system can now handle 750,000 simultaneous users,
up from 400,000 last year. The latest software update for AOL was released
July 30 and has been downloaded by 5 million members already. Bob Pittman,
president-COO, said the adoption of the new software is the "fastest-ever
adoption rate of any online product." (Kegger tonight at Steve Case's, man)
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/
[SOURCE: New York Times (CyberTimes), AUTHOR: Lisa Napoli]
http://www.nytimes.com/library/tech/98/08/cyber/articles/28aol.html

PATENT FOR ONLINE PATENTS
Issue: E-Commerce/Intellectual Property
As mentioned in a summary earlier this week, the U.S. Patent and Trademark
Office awarded Nat Goldhaber, the founder of CyberGold Inc., a patent for
online "attention brokerage." This move has fueled a debate over the use of
patents in the Internet age. Some see patents as a reward for creativity.
Others see the government as awarding patents to protect innovative business
models, and they fear that this will stifle competition in electronic
commerce. "This is a very significant trend," said Mark Lemley, a law
professor at the Univ. of Texas who specializes in intellectual property. He
said he finds patents disturbing, especially when they cover online business
models. What particularly troubles Lemley and other critics is that if
companies can obtain patents for business models then other potential
competitors could be kept from getting into the game which in turn could
hamper competition.
[SOURCE: New York Times (CyberTimes), AUTHOR: Matt Richtel]
http://www.nytimes.com/library/tech/98/08/cyber/cyberlaw/28law.html

==============
MERGERS/RADIO
==============

RIDING RADIO MERGER WAVE, CHANCELLOR WILL BUY CAPSTAR
Issue: Radio/Merger
Radio merger mania started about two years ago with deregulation. It has now
reached a new level with Chancellor Media Corp. announcing yesterday that it
plans to buy Capstar Broadcasting Corp. for $2.3 billion in stock plus
nearly $1.8 billion in assumed debt. The combined company would surpass CBS
as the nation's largest chain of radio stations. Chancellor would have 463
stations with more than 65 million listeners in 105 markets and revenues of
about $2.3 billion. [What?!? diverse local ownership? what is that?]
[SOURCE: New York Times (C4), AUTHOR: Allen R. Myerson]
http://www.nytimes.com/yr/mo/day/news/financial/chancellor-capstar.html

CBS PLANS SPINOFF TO BOLSTER ITS STOCK
Issue: Ownership
CBS Corp will sell ~20% of its radio and outdoor advertising operations by
year-end in an initial stock offering. The spinoff will be renamed Infinity
Broadcasting -- the name of the radio company before CBS purchased it from
Mel Karmazin, now president and COO of CBS, for $3.8 billion. Mr. Karmazin
will be chairman and CEO of Infinity Broadcasting. While the stock market
plunged 300 points yesterday, CBS stock rose $2.06. CBS was purchased by
Westinghouse for $5.4 billion in 1995. The combined company then decided to
concentrate on its media holdings and sell off its industrial operations.
Gaines writes, "Now the company has decided that all media aren't the same,
and a second split is under way."
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Sallie Gaines]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808280376,00.html

INTERMEDIA FORESEES ADDITIONAL DEALS TO PROVIDE DATA SERVICES TO BABY BELLS
Issue: Telephony
Intermedia Communications Inc., a telecommunications company that offers a
full range of services, from long-distance to Internet access, is planning
partnerships with more of the Baby Bells once it is granted regulatory
approval for it's agreements with Ameritech and US West. David Ruberg,
Intermedia's chairman, and chief executive, says that the company would like
to provide data-transmission services for BellSouth, SBC and Bell Atlantic
as well. "We see no reason why we can't partner with the other three as
well," says Ruberg.
[SOURCE: Wall Street Journal (B5A), AUTHOR: Craig Karmin]
http://wsj.com/

===
FCC
===

TELECOM OFFICIALS COMPLAIN OF FCC SLOWDOWN
Issue: Regulation
"A lot of folks perceive the Commission as not functioning well," Cellular
Telecommunications Industry Association Senior VP Brian Fontes said of the
Federal Communications Commission. He's not alone in his opinion. FCC
operations have slowed and important decisions have been delayed, industry
officials say. "Industry representatives attributed the slowdown to a
variety of factors -- heightened congressional demands that require
time-consuming reports, the arrival of four new commissioners at once, more
differences of opinion among commissioners than in the past and lack of
strong leadership," TelecomAM reports.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
The Benton Foundation -- and especially the co-writers of Headlines -- would
like to thank Betsy Puckett for her hard work and dedication over the last
year. Today is Betsy's last day and we wish her all the best in her new
position.

"Bye, Betsy. We miss you already!"

Communications-related Headlines for 8/27/98

WIRELESS
FCC Seeks Comment on New Generation of
Wireless Networks (TelecomAM)

PRIVACY
Consumer advocates hail ruling on credit data sales (ChiTrib)

MERGERS
Resist the Urge to Merge (NYT)

INTERNET
Talking Toasters (WSJ)

TELEVISION
So Different, Yet So Much The Same (NYT)

========
WIRELESS
========

FCC SEEKS COMMENT ON NEW GENERATION OF WIRELESS NETWORKS
Issue: Wireless
In a notice of inquiry (NOI), the Federal Communications Commission's
International Bureau has asked for comment on four broad issues related to
wireless services: 1) service types and traffic characteristics; 2) spectrum
requirements; 3) spectrum location; and 4) technological advances and
spectrum efficiencies. The FCC will use the responses to shape its initial
positions before an International Telecommunication Union meeting in
November. Richard Engleman, chief of the International Bureau's planning and
negotiations division, said the U.S. favors a process that gives consumers
access to the "best technologies," although he said the government is
"concerned when it looks like the standards process is not open." The FCC
has received requests for 499 MHZ of spectrum for terrestrial systems, about
309 MHZ more than used by personal communications services (PCS), cellular
and enhanced specialized mobile radio, and 136 MHZ more for satellite-based
systems beyond the allocation for mobile satellite systems. [The NOI is not
yet available on the FCC website. We will pass on that information when it
becomes available]
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

=======
PRIVACY
=======

CONSUMER ADVOCATES HAIL RULING ON CREDIT DATA SALES
Issue: Privacy
Administrative Law Judge James Timony has ordered a Chicago-based credit
bureau, Trans Union Corp, to stop selling detailed consumer credit
information to marketers. The Federal Trade Commission judge wrote that
Trans Union "invades consumers' privacy when it sells consumers' credit
histories to third-party marketers without consumers' knowledge or consent."
The Consumer Federation of America hailed the decision: "Personal financial
information in credit reports shouldn't be used for purposes other than
granting credit. It's a privacy invasion and a risk to consumers to have
financial information in hands where it doesn't belong. It helps to
encourage theft of identification and fraud, " said Jean Ann Fox, director
of consumer protection for the Washington, D.C.-based non-profit
organization. Trans Union plans to appeal the decision.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Kathy Bergen]
http://chicagotribune.com/textversion/article/0,1492,ART-13709,00.html

========
MERGERS
========

RESIST THE URGE TO MERGE
Issue: Mergers/Telephony (Op-Ed)
In recent months, the telecommunications industry has been plagued by merger
fever. AT&T plans to take over TCI; SBC has acquires both Pacific Telesis
and Ameritech; after buying Nynex, Bell Atlantic merges with GTE. According
to author David McCourt, chairman of the telecommunications company RCN
Corp., emerging mega-giants are likely to face great obstacles to competing
in this age of innovation. "If 100 years of business history has taught us
anything, it is that Godzilla can't marry King Kong and live happily ever
after," says McCourt. As these mega-giants scramble to compete in this
unprecedented transformation, he suggests that becoming bigger is not the
solution - being better is.
[SOURCE: New York Times (A27), AUTHOR: David McCourt ]
http://www.nytimes.com/yr/mo/day/oped/27mcco.html

========
INTERNET
========

TALKING TOASTERS: COMPANIES GEAR UP FOR INTERNET BOOM IN THINGS THAT THINK
Issue: Internet/New Technologies
How would you like to send an e-mail message telling your coffee maker to
brew you a pot? Soon it may be possible to communicate with all sorts of
machines and appliances through the Internet. Sony already sells a stereo
that can download audio from the Web and GE uses the Internet to check
factory equipment thousands of miles away. One concern arising form Internet
linked appliances is security. "Who would want...their linked-up dishwasher
to catch some suds-erupting virus off the Internet?"
[SOURCE: Wall Street Journal (A1,A6), AUTHOR: Thomas Weber ]
http://wsj.com/

==================
TELEVISION/CULTURE
==================

SO DIFFERENT, YET SO MUCH THE SAME
Issue: Television/Cultural Understanding
A television series starting tonight on PBS, focuses on bringing
together individuals from dissimilar and opposing cultures in civil
conversation via satellite dishes. The technical accomplishment of the
"Vis-a-Vis" series is an hour-long synthesis of four days of show and tell.
The series, that has already won audiences in Europe, will open tonight with
a program called "Beyond the Veil," where a high school teacher from Tehran,
Iran and one from Washington D.C. will chat and share home videos on
television monitors. Next week, the special will introduce two black police
sergeants, one from Soweto, South Africa and the other from Philadelphia.
"To judge by these two examples, 'Vis-a-Vis' is at its most illuminating
when it does not strain for either confrontation or reconciliation but
explores the professional and private concerns that make for surprising
connections."
[SOURCE: New York Times (B5), AUTHOR: Walter Goodman]
http://www.nytimes.com/yr/mo/day/news/arts/tv-veil-review.html

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

COMMUNICATIONS-RELATED HEADLINES for AUGUST 26, 1998

EDUTECH
To Help Wire Schools South Dakota Turns to Prisons (CyberTimes)

INTERNET
Study Says 70 Million American Adults Use They Internet (NYT)

CABLE
TCI's cable phone on hold (ChicagoTrib)

LABOR/JOBS
US West and CWA Trade Charges While SNET Fights Back
With Ads (TelecomAM)

PRIVACY
Privacy Double-Cross (WP)

CORPORATE
U.S. Investigating Microsoft's Role in Intel Decision (NYT)
A Struggling Adobe Rejects Bid by Quark (NYT)
CBS Considers Cost-Cutting Measures As Programming Expenses
Skyrocket (WSJ)

WIRELESS
For Paging Industry, a Bet on Two-Way Gadgets (WSJ)

=======
EDUTECH
=======
TO HELP WIRE SCHOOLS SOUTH DAKOTA TURNS TO PRISONS
Issue: Edutech
The South Dakota Department of Corrections is involved in a novel project
designed to connect the state's schools to the Internet at relatively low
costs, while teaching criminals a marketable job skill. Crew members
participating in the project, called Wiring the Schools, are nonviolent
convicts currently serving time for minor offences in South Dakota state
prisons. They work pulling cable, installing electrical outlets and doing
the other work necessary to connect the state's classrooms to the Internet.
"It was better than sitting, just doing time. You got to learn a lot," said
Tony M.Janssen, who participated in the program while he was serving a
sentence for a drunk driving conviction. Raymond W. Christensen, coordinator
of the effort, said the program was launched around two years ago at the
suggestion of Governor William J. Janklow.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
http://www.nytimes.com/library/tech/98/08/cyber/education/26education.html

========
INTERNET
========

STUDY SAYS 70 MILLION AMERICAN ADULTS USE THE INTERNET
Issue: Internet Use
A survey of online use released yesterday reports that more than one-third
of Americans over 16 use the Internet. This is an increase of more than 18
million people in the nine month study period through June 1998. The study
conducted by Nielsen Media Research and CommerceNet, estimates that the
largest increases are among blacks and American Indians, and among young
adults and women over 50. According to the study, 40.1 million men and 30.1
million women use the Internet and said percentage growth among the two
groups during the nine-month period was about equal. "Last fall, we thought
there might be a slight leveling off," said Loel McPhee, research director
at CommerceNet. "This isn't the case with the numbers we're seeing now. My
guess is we'll continue to grow until we hit the 50 percent mark"
[SOURCE: New York Times (BusTech), AUTHOR: The Associated Press]
http://www.nytimes.com/library/tech/98/08/biztech/articles/26traffic-sid...

=====
CABLE
=====

TCI'S CABLE PHONE ON HOLD
Issue: Cable/Telephony
TCI launched local phone service in a Chicago suburb two years ago. But in a
community of 75,000 people, only 500 households have switched from dominant
provider Ameritech. And even though AT&T wants TCI's cable telephony to be a
competitor in the local phone service market, TCI will be pushing high-speed
Internet access across its lines in the coming months. AT&T is waiting for
technology that will create a state of the art data network and allow the
company to charge super-low rates and still make money. TCI is currently
upgrading its network with fiber optics so it can provide more pay-per-view
channels and high-speed Internet access. If the proposed AT&T-TCI merger
goes through, Chicago will be the biggest market with the combined company's
infrastructure in place.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-13671,00.html

==========
LABOR/JOBS
==========

US WEST AND CWA TRADE CHARGES WHILE SNET FIGHTS BACK WITH ADS
Issue: Labor/Jobs
Talks continue on two fronts -- between the Communications Workers of
America (CWA) and US West, and CWA and Southern New England Telephone
(SNET). In US West territory, incidents of vandalism are on the rise and are
disrupting service. Rallies by workers are trying to prevent managers and
temporary workers from entering facilities. In Connecticut, the players are
competing through advertising -- workers expressing regret for the
inconvenience and SNET claiming that it is bargaining in good faith.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

========
PRIVACY
========

PRIVACY DOUBLE-CROSS
Issue: Privacy/Internet (Editorial)
Last week's Federal Trade Commission settlement with the GeoCities Web site
demonstrated that the government can enforce privacy standards on the
Internet. GeoCities was accused of misleading its 2 million clients about
the use of their personal information, telling customers that their data
would be released to a third party only with their permission. While the
government cannot regulate how Internet companies use consumer information,
they can prevent them from lying about it.
[SOURCE: Washington Post (A18), AUTHOR: Washington Post Editorial Staff]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/26/009l-082698-idx.html

=========
CORPORATE
=========

U.S. INVESTIGATING MICROSOFT'S ROLE IN INTEL DECISION
Issue: Antitrust
"Microsoft Corp. and Intel Corp. are so intertwined, so seemingly dependent
on each other for their success, that they are often referred to as a single
entity -- 'Wintel' -- in recognition of the degree to which Microsoft's
Windows operating system and Intel's microprocessors dominate the technology
of personal computing." But the government is now investigating whether
Microsoft used its power in the market to force even Intel, "its only real
peer," to shelve new technology efforts because they conflicted with
Microsoft's ambitions. This current look into Microsoft's past business
dealings directly relates to the federal government and state accusations
that Microsoft has used unfair business practices to protect its monopoly in
operating systems and to extend that monopoly into the new markets for
Internet software and commerce.
[SOURCE: New York Times (A1,D4), AUTHOR: Steve lohr & John Markoff]
http://www.nytimes.com/library/tech/98/08/biztech/articles/26microsoft.html

A STRUGGLING ADOBE REJECTS BID BY QUARK
Issue: Takeover Bid/Merger
Quark Ink., the graphic software publisher, said yesterday that it had
offered to acquire rival company, Adobe Systems Inc., at a premium to
Adobe's current stock price. Adobe turned down the offer. While Quark said
it was disappointed by Adobe's response and that it would continue to seek a
friendly transaction, it held out the possibility of a hostile takeover.
[SOURCE: New York Times (D1,D5), AUTHOR: John Markoff]
http://www.nytimes.com/yr/mo/day/news/financial/adobe-quark.html

CBS CONSIDERS COST-CUTTING MEASURES AS PROGRAMING EXPENSES SKYROCKET
Issue:Coorporate/ Television
The broadcast networks, concerned about their future in light of continual
strong performance by cable, have been paying astronomical prices for
popular shows in hopes of keeping audiences. NBC recently agreed to pay $13
million for each new episode of "ER". CBS, ABC and FOX just struck a $18
billion deal for the rights to NFL football. Despite this record spending on
sports and entertainment programming, network viewership continues to
decline. As a result, CBS Corp. is reviewing possible ways to cut costs and
increase profitability. While CBS reported a quadrupled net income in the
second quarter, executives feel under pressure to consider staff reductions,
outsourcing and other cost saving measures. No specific targets have been
set, and it will certainly be a challenge to cut heads and while keeping
the professional network look.
[SOURCE: Wall Street Journal (B2), AUTHOR: Eben Shapiro]
http://wsj.com/

======
Wireless
======

FOR PAGING INDUSTRY, A BET ON TWO-WAY GADGETS
The new trend in pagers is two-way devices. "To be a player in the future,
you're going to have a nationwide, two-way network," says wireless analyst
Darryl Sterling. Several communications companies including SkyTel,
BellSouth, and American Mobile Satellite Corp, already offer some form of
two-way data service. These pagers allow users to send messages back and
forth at the push of a button. Doug Brackbill and Steve Cox use this "high
tech form of passing notes" to consult with each other during marketing
meetings. Backbill compares it to baseball players exchanging signals during
a game; "We'll use them to confer privately on terms we're discussing with a
potential partner."
[SOURCE: Wall Street Journal (B1), AUTHOR: Stephanie Mehta]
http://wsj.com/

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

Communications-related Headlines for 8/25/98

INTERNET
California Governor Signs Bill Calling for Moratorium on New
Internet Taxes (NYT)
California Internet Tax Moratorium Signed Into Law (TelecomAM)
Cybergold Claims the Patent Rights to Surveys on Web-Users'
Attention (WSJ)
Notice and Request for Comments on the Enhancement of the .us
Domain Space (NTIA)
Second Firm to Test Internet Postal Metering (WSJ)

LABOR/JOBS
SNET Files Unfair Labor Practices Suit Against CWA (TelecomAM)
US West Resumes Negotiations With CWA Without Reaching Agreement

RADIO
Fill in the Blankety Blank (WP)

JOURNALISM
As The Globe Turns (WP)

WIRELESS
THE NEXT WAVE IN WIRELESS TECHNOLOGIES (NTIA)

========
INTERNET
========

CALIFORNIA GOVERNOR SIGNS BILL CALLING FOR MORATORIUM ON NEW INTERNET TAXES
Issue: Internet Use
California Governor Pete Wilson signed a measure yesterday that forbids any
new taxes on Internet activity for the next three years. The bill, called
the California Internet Tax Freedom Act, is intended to assist companies
that are dependent on the Internet create new jobs, products and services.
"It's only fitting that the state that showed America how to surf -- and
surf the Internet -- should also lead the policy debate about how to keep
the Internet a vibrant avenue for growth and opportunity," the governor
said. [...and we'll have fun, fun, fun until the governor takes the measure
away....]
[SOURCE: New York Times (BusTech), AUTHOR: The Associated Press]
http://www.nytimes.com/library/tech/98/08/biztech/articles/25california....

CALIFORNIA INTERNET TAX MORATORIUM BILL SIGNED INTO LAW
Issue: Legislation/Internet
On August 24 California Gov. Pete Wilson (R) signed into law the California
Internet Tax Freedom Act, which imposes a moratorium until August 2001 on
local government taxation of Internet service providers, Internet usage or
Internet transaction services. The new law bars local taxes applied to
Internet-specific business activity, and prohibits any discriminatory
application of existing local business taxes or fees on Internet services.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

CYBERGOLD CLAIMS THE PATENT RIGHTS TO SURVEYS ON WEB-USERS' ATTENTION
Issue: Electronic Commerce
CyberGold Inc. is a Web start-up that pays individuals to view Internet
advertisements and then fill out marketing surveys. The company has
announced that a patent issued earlier this month gives it the sole right to
offer such on-line incentives. The patent covers a new concept called
"attention brokerage," the business of buying and selling the attention of
Internet users. This concept is a new business model that developed out of
the interactivity made possible by the Web, and it could become a widespread
marketing practice. Nat Goldhaber, CyberGold's chief executive officer, said
his company will offer its methods to competitors "in the nascent on-line
incentives market," possibly for a per-transaction fee. Netcentives Inc., a
competitor that rewards consumers with frequent-flyer miles and other
incentives for purchasing online, said that it had not yet determined the
impact of the patent. "Our business model in fundamentally different than
our competitors," said West Shell III, Netcentives' chief executive officer.
"It's all about electronic commerce, not about viewing ads." Mr. Goldhaber
says that CyberGold will not charge exorbitant licensing fees that could
stunt the growth of his service, "Our intention is to be reasonable and
inclusive," he says.
[SOURCE: Wall Street Journal (B6), AUTHOR: David Bank]
http://wsj.com/

NOTICE AND REQUEST FOR COMMENTS ON THE ENHANCEMENT OF THE .US DOMAIN SPACE
Issue: Internet
On August 4, 1998, the National Telecommunications and Information
Administration (NTIA) published a Notice and Request for Comments on the
Enhancement of the .us Domain Space (Notice), 63 Fed. Reg. 41547 (1998). The
Notice asked for public comments through September 3, 1998. As a result of
numerous requests from the public, the NTIA is extending for 30 days the period
for filing public comments. The comment period for the Notice will now close
on October 5, 1998.
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/domainname/usrfc/dotusext.htm
http://www.ntia.doc.gov/ntiahome/domainname/usrfc/dotusrfc.htm

SECOND FIRM TO TEST INTERNET POSTAL METERING
Issue: Internet Use
Stamp Master Inc., based in Westlake Village, Calif., has announced that it
won approval from the U.S. Postal Service to begin testing technology to
sell postage over the Internet. It will begin testing its personal-computer
postage-metering technology with 21 people and small businesses in the
Washington D.C. area.
[SOURCE: Wall Street Journal (B6), AUTHOR: Lisa Bransten]
http://wsj.com/

==========
LABOR/JOBS
==========

SNET FILES UNFAIR LABOR PRACTICES SUIT AGAINST CWA
US WEST RESUMES NEGOTIATIONS WITH CWA WITHOUT REACHING AGREEMENT
Issue: Labor/Jobs
First, in the Southern New England Telephone (SNET) case, SNET has charged
the Communications Workers of America (CWA) with the following: 1) failing
to send negotiators with the authority to accept a binding agreement and for
substituting new negotiators to "frustrate" bargaining; 2) withdrawing
agreed-upon proposals and issuing
new demands after issues had been settled; and 3) engaging in "surface
bargaining" and other "bad faith" techniques with no intention of entering a
pact. In the US West case, CWA placed large ads in key newspapers --
including the Wall St. Journal and the Washington Post -- describing the
company as a "bad apple" and a "renegade" among local exchange carriers,
"out of step with progress in the rest of the industry." The ads accused US
West of cutting back on customer service and neglecting maintenance, and
said the company "slashed the work force by 12 percent" even as business
expanded 20 percent.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

=====
RADIO
=====

FILL IN THE BLANKETY BLANK
Issue: Radio/Content
When you turn on the radio it is increasingly likely that you will hear one
of those words with only four letters. It is no longer just Howard Stern and
other shock jocks that throw around questionable language. These days, you
could hear a four-letter word on radio programs devoted to sports or
music. One reason for this growing trend is that station owners know
the Federal Communications Commission is not likely to do anything about it.
While the law clearly prohibits "profane and indecent" language on the
radio, the FCC and the courts have interpreted the law to ban material that
is offensive, "as measured by contemporary standards." "In other words, if
the guys down the dial are getting away with it, you'll get away with it
too."
[SOURCE: Washington Post (C1), AUTHOR: Marc Fisher]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/25/051l-082598-idx.html

==========
JOURNALISM
==========

AS THE GLOBE TURNS
Issue: Journalism
"I think I'm the unluckiest editor in America," laments Boston Globe editor
Matt Storin. The Boston newspaper has been plagued with one scandal after
another this summer. Two controversial columnist, Michael Barincal and
Patricia Smith, one white and one black, were recently let go as result of
fabrication and shoddy reporting allegations. As with past scandals, the
issue of race became an important factor in the community's reaction to the
firings. The paper was accused of giving differential treatment to Barnical
than Smith because of race. In response to charges of racial bias Matt
Storin says "people who go before television cameras and say the Globe is
racist must really get a few chuckles in the white community, which thinks
the Globe bends over too far in support of the black community." In this
highly divided city, the paper will have to work hard to heal the wounds
form these bitter battles over race and ethics.
[SOURCE: Washington Post (C1), AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-srv/WPlate/1998-08/25/047l-082598-idx.html

========
WIRELESS
========

The Next Waves In Wireless Technologies
Issue: Wireless
A speech by Larry Irving to RAWCON '98, the IEEE's Radio and Wireless
Conference: "The title is appropriate because wireless industries are the
"movers and shakers" in the telecommunications arena. Wireless voice
communications have expanded significantly in the last five years. There is
no doubt that wireless is now a viable competitor to wired telephone
service. Wireless technologies also hold the promise for the future of data
transfer. As we are rapidly becoming an Information Society, wireless has
significant potential to serve our information needs - the subject I'd like
to explore this evening."
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/speeches/rawcon.htm

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

Communications-related Headlines for 8/24/98

EDUCATION TECHNOLOGY
Schools get hooked on technology (ChiTrib)
Voice of Experience Dissents (ChiTrib)

TELECOMMUNICATIONS REGULATION
Court Rules City Has Right to Charge Franchise
Fees to Competitors (TelecomAM)
Bliley Expresses Concern About Reported $5 Billion of
Missing LEC Equipment (TelecomAM)

TELEVISION
Gore Commission Seeks New Delay (B&C)
FCC Wants HDTV Glitch Solved Soon (NYT)
After Drought, Networks Put More Women in Top Posts (NYT)

OWNERSHIP
FCC Flags Radio Deals for Further Analysis (B&C)
Cable Asks FCC to Raise Cap (B&C)

INTERNET
Marketers Ponder How to sell Soap Without the Operas (NYT)

SECURITY/ENCRYPTION
IBM Discovers Web-Hacking Preventative (WSJ)
2 Researchers Believe They Can Block Hackers (ChiTrib)

INTERNATIONAL
China Plans For a 'Smart Card' System Using Technology
From Schlumberger (WSJ)

JOURNALISM
Surfing the Web for News in a Blockbuster News Week (NYT)
Press Liability (ChiTrib)

LABOR
Phone Workers In Connecticut Start Strike (NYT)
Phone Workers Strike in Conn. (WP)

====================
EDUCATION TECHNOLOGY
====================

SCHOOLS GET HOOKED ON TECHNOLOGY
Issue: Ed Tech
Thirty schools in the Chicago area have been touted as "high-tech schools."
But, Poe reports, researchers say filling a school with the latest equipment
is only the first step in bringing kids into the a new era of education. The
technology must be used to help children learn which means an emphasis on
teacher training. "It seems there has been lots of emphasis on what schools
have bought lots of technology," said Andres Henriquez, a senior research
associate at the Center for Children in Technology in New York. "But what is
thought of least often is how that infrastructure is going to be integrated
with the school curriculum and how teachers will be trained." [For more on
technology in the classroom, see The Learning Connection
http://www.benton.org/Library/Schools/]
[SOURCE: Chicago Tribune (Sec 4, p.6), AUTHOR: Janita Poe]
http://chicagotribune.com/textversion/article/0,1492,ART-13515,00.html

VOICE OF EXPERIENCE DISSENTS
Issue: Ed Tech
Clifford Stoll, an astronomer and computer whiz, wrote a book called
"Silicon Snake Oil" about the failings of the Internet -- the massive
amounts of unsorted, untrustworthy information on the system and the
isolation it can bring. Mr. Stoll is now working on a book arguing *against*
computers in schools. The link below takes you to a recent interview with
Mr. Stoll.
[SOURCE: Chicago Tribune (Sec 4, p.4), AUTHOR: Dallas Morning News]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808240005,00.html

=============================
TELECOMMUNICATIONS REGULATION
=============================

COURT RULES CITY HAS RIGHT TO CHARGE FRANCHISE FEES TO COMPETITORS
Issue: Role of Local Government
The U.S. District Court ruled August 14 that Dearborn, Michigan, has the
authority to charge right-of-way fees to competitive local exchange carriers
(LECs), even though the incumbent Ameritech doesn't have to pay them. In a
related case, Judge Lawrence Zatkoff of the
U.S. District Court, Eastern Michigan, agreed with Ameritech that it has
"vested state franchise rights" and no "reasonable jury could find Ameritech
is required to enter into a franchise agreement with the City of Dearborn
pursuant to its regulatory ordinance."
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

BLILEY EXPRESSES CONCERN ABOUT REPORTED $5 BILLION OF MISSING LEC EQUIPMENT
Issue: Telephone Regulation
House Commerce Committee Chairman Thomas Bliley (R-VA) is "deeply concerned"
about the preliminary FCC audit indicating that major local exchange
carriers (LECs) can't find $5 billion worth of equipment recorded in their
books. Rep Bliley said that if carriers inflated their recorded investments,
consumers could be "overcharged millions of dollars" and there could be a
negative effect on competition. By September 4, Chairman Bliley wants the
FCC to answer detailed questions about what type of equipment is being
audited, when audits will be completed, what role the states have been given
in the audit procedure, how rates could be affected if carriers are missing
property recorded on the books, and what other FCC proceedings are affected
by the accounting records.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

==========
TELEVISION
==========

GORE COMMISSION SEEKS NEW DELAY
Issue: Public Interest/Digital Broadcasting
The Gore commission has been working to determine what the public interest
obligations of digital broadcasters should be. The commission now wants more
time and has asked the Administration to extend its report deadline from
October 1st to sometime in mid- or late December, said one commission
member. Members of the commission are meeting again on Sept. 9th to review a
preliminary draft of its final proposal. They expect the draft to include
suggestions for a voluntary code of conduct to be administered by the
National Association of Broadcasters (NAB). It will cover four program
areas, including: education, localism, minority interests and public
affairs. The code would also call for broadcasters to report on public
interest activities on a regular basis. "In some relatively clear and
explicit way, there has to be some accountability of the performance on
meeting the needs that have been ascertained," says Charles Benton, Chairman
of the "nonprofit media watchdog group" the Benton Foundation and a member
of the commission. While the NAB has not taken an official position on such
a code, it did make clear its opposition to it at a meeting earlier this summer.
[For more on the Commission see http://www.benton.org/Policy/TV/piac.html]
[SOURCE: Broadcasting&Cable (p.19), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/

FCC WANTS HDTV GLITCH SOLVED SOON
Issue: HDTV
William Kennard, Chairman of the Federal Communications Commission, has
written a letter to industry leaders expressing his concern over a small
technical glitch that threatens to postpone the launch of HDTV broadcasts
that are scheduled to begin on Nov. 1, 1998. The problem involves a cable
needed to carry digital signals from set-top cable converter boxes to HDTV
sets. Chairman Kennard's letter demanded a quick solution to the compatibility
problem which would prevent cable subscribers from receiving digital
programming. He wrote, "I call on your industries to communicate to the
American public that these solutions will be available and to redouble your
efforts to enable the American public to receive digital broadcast
programming over cable for display on first generation sets."
[See the letter http://www.fcc.gov/Speeches/Kennard/Statements/stwek862.html
[SOURCE: New York Times (D4), AUTHOR: Joel Brinkley ]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/24fcc.html

AFTER DROUGHT NETWORKS PUT MORE WOMEN IN TOP POSTS
Issue: Gender/Employment
While it may have "been a bad year for women in television," as reported in
Aug. 3 Broadcasting & Cable's in reference to the recent departures of
several women from powerful roles in the industry, August has brought a
change in tide, with some high profile promotion of female executives. CBS,
NBC, and Disney have all placed women in top executive positions this month.
Most people are pleased to see the return of women to top jobs, but there
are skeptics who fear that these new appointees are not like the outspoken
pioneers who preceded them. Kay Koplovitz, founder and former president of
the USA network, offers cautious enthusiasm: "It's clear from these
appointments that the company still resides with the chief executive, and
those are still men." She adds that "the good news is we're finally
starting to see a shift in comfort level and confidence level of the men
making decisions, and they have confidence now in both men and women. I'm
thrilled to see it."
[SOURCE: New York Times (D1), AUTHOR: Lawrie Mifflin]
http://www.nytimes.com/yr/mo/day/news/financial/tv-women-media.html

=========
OWNERSHIP
=========

FCC FLAGS RADIO DEALS FOR FURTHER ANALYSIS
Issue: Competition/Public Interest
Officials at the FCC have invited public comments on the competitive impacts
of radio deals that could possibly give one or two companies a dominant
share of a local radio market. In a public notice this month, regulators
"flagged proposed deals in three markets and asked for comments on their
potential impact on local competition." In the notice, the Commission said,
"We request that anyone interested in filing a response to this notice
specifically address the issue of concentration and its effect on
competition and diversity in the market at issue." "In seeking the public
comments, regulators are pointing to their obligation to ensure that
approved deals serve the public interest."
[SOURCE: Broadcasting&Cable (p.18), AUTHOR: Chris McConnell]
http://www.broadcastingcable.com/

CABLE ASKS FCC TO RAISE CAP
Issue: Cable/Ownership
A number of cable operators have responded to an FCC proposal to alter its
restrictions on the number of cable companies that a company can own. The
current regulations set the limit at 30 percent of homes passed nationwide.
Tele-Communications Inc. (TCI) said that regulators should raise the cap to
40 percent and Time Warner called for raising the limit to 35 percent.
They, along with AT&T, argue that relaxed caps could help cable compete with
local phone companies to offer high-speed data services. A collection of
groups object to loosening the caps, including the Assoc. of Independent
Video and Filmmakers, the Consumer Federation of America and Consumers
Union. "The case for lower limits is stronger than ever," the groups said,
pointing to expanding coverage among the largest multiple system operators.
"While increased consolidation has undoubtedly allowed the cable industry to
benefit from economies of scale, these benefits have not reached the public."
[SOURCE: Broadcasting&Cable (p.19), AUTHOR: Chris McConnell]
http://www.broadcastingcable.com/

========
INTERNET
========

MARKETERS PONDER HOW TO SELL SOAPS WITHOUT SOAP-OPERAS
Issues: Internet/Advertising
The big unanswered question during the two-day Procter & Gamble Co.
conference on advertising and the Internet seemed to be, "Mr. Whipple, where
are you now?". The Internet is the first medium that has actually decreased
viewership of television and surfers of the Web have shown little
interest in the more traditional ad-style of serial storytelling. So now
high-powered industry execs are trying to figure out how to "sell soap
without soap operas." Participants in the conference struggled with issues
such as technical matters and whether banner advertisements and other online
vehicles can ever achieve the emotional resonance of a little boy in a Crest
television commercial bounding up to say "Look Ma! No cavities!" "I can't
think of one slogan developed on the Net that everybody knows," says Seth
Godin, the chief executive of Yoyodyne, an Internet promotion company. "It's
not a medium for the Great Big Idea." Though the Internet is often said to
be the first medium that enables marketers to interact with consumers one to
one, "it has yet to reveal itself as a means for mass marketing the communal
dreams in which a box of detergent or a can of soda comes to symbolize a way
of life."
[SOURCE: New York Times (D1, D7), AUTHOR: Saul Hansell]
http://www.nytimes.com/library/tech/98/08/biztech/articles/24advertising...

===================
SECURITY/ENCRYPTION
===================

IBM DISCOVERS WEB-HACKING PREVENTATIVE
Issue: Privacy/Encryption
International Business Machines Corp. is planning to announce today a new
system for sending information securely over the Internet. "The new method
promised to address a potential vulnerability in encryption systems used by
many Web sites to protect credit-card numbers and other personal information
while en route over the Internet." IBM executives have sought to
portray their latest development as a great benefit to electronic commerce,
but they stress that the encryption systems currently in use are practically
invulnerable to hackers. "I'm still buying books on-line all the time, so
obviously I'm not worried," said Charles Palmer, the senior manager of IBM
Research's network security and cryptography group.
[SOURCE: New York Times (B5), AUTHOR: Rebecca Quick]
http://www.nytimes.com/

2 RESEARCHERS BELIEVE THEY CAN BLOCK HACKERS
Issue: Security/Encryption
Zurich-based mathematicians Victor Shoup of IBM Research and Ronald Cramer
of the Swiss Federal Institute of Technology have developed a system for
securing information against computer hacker attacks. The researchers plan
to give away their findings for free to boost the integrity of Internet
electronic transactions and online privacy. "Businesses and consumers can
have greater confidence in Internet transactions because we've effectively
closed down the only way around a cryptosystem's main line of defense," Jeff
Jaffe, general manager for IBM's security products and services, said in a
statement.
[SOURCE: Chicago Tribune (Sec 1, p.6), AUTHOR: Reuters News Service]
http://chicagotribune.com/textversion/article/0,1492,SAV-9808240168,00.html

=============
INTERNATIONAL
=============

CHINA PLANS FOR A 'SMART CARD' SYSTEM USING TECHNOLOGY FROM SCHLUMBERGER
Issue: International
China's consumer market is about to become the most ambitious testing ground
for "smart cards" to date. The People's Bank of China plans to distribute as
many as two million smart cards, plastic payment cards that have an embedded
computer chip, next year. The cards and electronic machines that process
them will be provided by Schlumberger Ltd., the New York technology and
oil-industry services business. Schlumberger will also train consumers and
clerks is how to use them.

==========
JOURNALISM
==========

SURFING THE WEB FOR NEWS IN A BLOCKBUSTER NEWS WEEK
Issue: Journalism/ Internet
Last week brought a noticeable increase of visitors to World Wide Web news
sites. A record amount of traffic was reported on both Monday,
during President Clinton's testimony, and during Thursday's military strikes. In
addition to seeking out the up-to-the-moment information on the Web, people
are also eager to share their opinion online. "The promise and expectation
of the Internet is the ability to reach out and touch everyone," says Jim
Schulte, editor of USA Today's online edition. "That's the whole strength.
Everyone gets their 2 cents in."
[SOURCE: New York Times (D3), AUTHOR: Lisa Napoli]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/24surf.html

PRESS LIABILITY
Issue: Journalism
"The more perceptive among us are coming to understand the Monica Lewinsky
saga for what it really is -- this year's O.J. Simpson story. With the
advent of CNN, cable talk shows and Internet scandal sheets, there must
always, from now on, be an 'O.J.' story." McCarron criticizes the press who
suggested that last week's bombings were 'Wag-the-Dog'-type chapters in this
year's OJ story. "Sooner or later, if enough of you complain loud enough, we
will get better. We can't get any worse."
[SOURCE: Chicago Tribune (Sec 1, p.13), AUTHOR: John McCarron]
http://chicagotribune.com/

=====
LABOR
=====

PHONE WORKERS IN CONNECTICUT START STRIKE (NYT)
PHONE WORKERS STRIKE IN CONN. (WP)
Issue: Labor/Local Telephone
In the latest local telephone strike of the summer, over 6,000 workers form
the Southern New England Telecommunications Corporation (SNET) began
picketing the Connecticut company on Sunday. Workers struck after the break
down of contract negotiations in which the union was asking for better
health-care benefits and more competitive wages. The Communication Workers
of America (CWA), who represents the striking workers, claims that SNET
employees are receive 20-25 percent less than industry average for the same
work. CWA workers reached a settlement with Bell Atlantic after a two-day
strike earlier this month, while about 34,000 CWA members are reaching the
second week of a strike against Denver based US West.
[SOURCE: New York Times (A17), AUTHOR: Amy Waldman]
http://www.nytimes.com/yr/mo/day/news/national/regional/ct-phone-strike....
[SOURCE: Washington Post (A7), AUTHOR: Bloomberg News]
http://www.washingtonpost.com/

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
Let me get this straight -- "[The Internet]'s not a medium for the Great Big
Idea." But television is. OK.

Benton

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