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Communications-related Headlines for 7/29/98

ACCESS & EQUITY
NTIA Study Finds Continuing Technology Disparities (TelecomAM)

LEGISLATION
Senate Fiance Committee Approves Internet Tax Freedom Act
(TelecomAM)

MERGERS
Bell Atlantic to Acquire GTE in $52.9-Billion Stock Deal
(TelecomAM)
Merger to reshape cell phone market (ChiTrib)
Bell Atlantic and GTE Get Static on Merger (WP)
Questions Arise on Bell Atlantic's Acquisition of GTE (NYT)

OWNERSHIP
Puerto Rican Phone Workers Vote to End Strike,
With Goal Unmet (NYT)(WST)(WP)

ED TECH
Universities Embrace Distance Learning for Busy Professionals
(CyberTimes)

SECURITY/PRIVACY
Flaw Could Let Hackers Deliver Devastating E-Mail (ChiTrib)
Software Flaw Allows Viruses Within E-Mail (NYT)
Congress Lax on Privacy Issue, Report Says (ChiTrib)

===============
ACCESS & EQUITY
===============

NTIA STUDY FINDS CONTINUING TECHNOLOGY DISPARITIES
ISSUE:
Falling Through the Net II, a new study by the National Telecom and
Information Administration (NTIA), finds that although more people own
computers and access online services than did three years ago, there's still
a disparity by race and income. NTIA's Larry Irving said the problem "is not
going to be solved by government alone," but programs such as the e-rate can
help bridge the "digital divide." Vice President Al Gore called the study
findings "troubling," saying they "underscore the absolute necessity for
programs such as the e-rate that reach out to communities that otherwise
lack electronic resources." Households earning more than $75,000 a year were
7 times more likely to own a computer than those earning $5,000-$10,000, and
white households were twice as likely to own computer as black households.
[See Falling Through the Net II
http://www.ntia.doc.gov/ntiahome/net2/falling.html]
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

===========
LEGISLATION
===========

SENATE FINANCE COMMITTEE APPROVES INTERNET TAX FREEDOM ACT
ISSUE: Internet Regulation/Legislation
In a 19-1 vote, the Senate Finance Committee July 28 approved a new version
of the Internet Tax Freedom Act. The measure would place a two-year ban on
new and existing state and local Internet taxes. The House version of the
bill (HR-4105) calls for three-year ban.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

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

BELL ATLANTIC TO ACQUIRE GTE IN $52.9-BILLION STOCK DEAL
ISSUE: Mergers
Bell Atlantic and GTE have agreed to merge and form a 39-state carrier --
covering the Northeast, Sunbelt and California -- with $53 billion in annual
revenues and 63 million access lines, more than 40 percent of all lines in
the US. The merger must show advantages for consumers and competition for
the marketplace, FCC Chairman William Kennard said. He said he looked
forward to reviewing the deal and hopes "the parties will demonstrate how
this merger advances the pro-competitive thrust of the Telecommunications
Act." "The combined
enterprise will have the financial, operational and technological resources to
compete effectively against the strategies of AT&T/TCI, SBC/Ameritech,
WorldCom/MCI and others, both current and future," said Bell Atlantic CEO
Ivan Seidenberg.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/
[See also "Merger to reshape cell phone market"
http://chicagotribune.com/textversion/article/0,1492,ART-12531,00.html
Chicago Tribune (Sec 3, p.1) by Jon Van]

BELL ATLANTIC AND GTE GET STATIC ON MERGER
ISSUE: Mergers/Telephony
Following yesterday's announcement that Bell Atlantic and GTE are planing a
$53 billion dollar merger, critics have begun to question the effect the
deal will have on competition. FCC chairman William Kennard said he plans
take a hard look at the merger to determine weather the deal promotes
competition or harms it , "I hope the parties will demonstrate how this
merger advances the pro-competitive thrust of the Telecommunications Act".
If all currently planed mergers are approved, the seven original Bell
companies would become just four separate companies. "This is the opposite
of what Congress promised people with telecommunications deregulation," says
Gene Kimmelman, Washington co-director of Consumers Union. Sen. Patrick
Leahy (D-Vt.) suggest that "we should go back and look at the telecom act
again." He has introduced legislation that would subject the Bell mergers to
a more rigorous approval process. "To my view, despite the promise of
competition and lower rates, we've only had consolidation."
[SOURCE: Washington Post (C9), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/29/148l-072998-idx.html

QUESTIONS ARISE ON BELL ATLANTIC'S ACQUISITION OF GTE
ISSUE: Mergers/Telecom Act
The Bell Atlantic Corporation's announced $52.9 billion acquisition of the
GTE Corporation yesterday has left some Washington politicians expressing
wariness, fearing that the Telecommunications Act of 1996 had not produced
the broad competition that its backers promised. Senator Herb Kohl (D-WI),
the Senate antitrust committee's ranking Democrat, said that since the act
became law, "we have had lots of consolidation but not a whole lot of
competition. If this trend continues unabated, you can be sure that next
year Congress will consider cracking open the Telecom Act like a raw egg --
that is, if the Telecom Act still matters."
[SOURCE: New York Times (D4), AUTHOR: Seth Schiesel]
http://www.nytimes.com/library/tech/98/07/biztech/articles/29gte-bellatlant
ic.html

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

PUERTO RICAN PHONE WORKERS VOTE TO END STRIKE, WITH GOAL UNMET
ISSUE: Telephony/Privatization
Two Puerto Rican telephone unions voted to end their 41-day-old strike in
protest of Gov. Pedro Rossello's decision to sell Puerto Rico Telephone Co.
to investors lead by GTE Corp. The unions agreed to return to work - without
achieving their ultimate goal of blocking privatization -- in exchange for
protection form government action against most strikers. Union officials
pledge to continue the fight, despite the agreement. Jose Juan Hernandez,
president of the Independent Telephone Workers Union, says "This ended the
strike, but the struggle against the sale continues."
[SOURCE: Washington Post (A9), AUTHOR: WP Staff Writer]
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/29/054l-072998-idx.html
[SOURCE: New York Times (A12), AUTHOR: NYT Staff Writer]
http://www.nytimes.com/yr/mo/day/news/national/puertorico-phones.html
[SOURCE: Wall Street Journal (B2) AUTHOR:WTJ Staff Writer]
http://wsj.com/

=======
ED TECH
=======

UNIVERSITIES EMBRACE DISTANCE LEARNING FOR BUSY PROFESSIONALS
ISSUE: Ed Tech
Top universities are slowly beginning to introduce a virtual academic
experience into their curriculum for a subset of their student population:
working adults. Prestigious universities such as Oxford, Duke, Stanford,
McGill and Harvard are starting to conduct a few courses and degree programs
over the Internet. What they all have in common is an attempt to appeal to
busy adults who really want to take courses but find traveling to
traditional classes a major restraint. Students like Dean A. Butchers, a
37-year-old father of two and a marketing manager at IBM who often travels
for business, agree that online courses offer options that may not otherwise
have been possible. "Any other type of more traditional course would have
necessitated my putting my career on hold," said Butchers. "As long as I
have a telephone line and my Think Pad, I can do my coursework."
Spokespeople for these institutions say they have no plans to offer
undergraduate courses over the Internet as they believe a real campus
experience is an essential part of academic life for the young student
seeking a bachelor's degree. Some worry however that after trying online
education in one setting, universities will be tempted to also use it in
others. James L. Turk, executive secretary of the Canadian Association of
University Teachers, is concerned that some community colleges in Canada may
begin using Internet-based courses to replace faculty and worries that elite
institutions may follow suit, seeing computers as a way to cut teaching costs.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
http://www.nytimes.com/library/tech/98/07/cyber/education/29education.html

================
SECURITY/PRIVACY
================

FLAW COULD LET HACKERS DELIVER DEVASTATING E-MAIL
ISSUE: Security
Finnish researchers have found flaws in Microsoft's and Netscape's email
programs that allow any outsider to send an email message capable of
executing commands such as erasing a computer's hard drive. George Meng, a
group product manager for Microsoft, said: "We're definitely not taking this
lightly. There definitely is a scenario in which someone could do damage to
people's systems." A fix is available at Microsoft's website
http://www.microsoft.com/ie/security and one is expected soon on
Netscape's site http://www.netscape.com.
[SOURCE: Chicago Tribune (Sec 1, p.3), AUTHOR: David Wilson]
http://chicagotribune.com/textversion/article/0,1492,SAV-9807290172,00.html

SOFTWARE FLAW ALLOWS VIRUSES WITHIN E-MAIL
ISSUE: E-Mail
A major security flaw has been identified in popular email programs
published by Microsoft Corp. and Netscape Communications Corp. that would
permit a malicious person to send a message containing a virus that could
crash a computer, destroy or even steal data. To date, security tests have
shown that the "flaw exists in three of the four most popular, email
programs: Microsoft's Outlook Express and Outlook 98 and Netscape's Web
browser, Navigator, which is part of its Communicator suite of Internet
programs." Both companies are currently working on solutions to this problem
and Microsoft is already providing fixes on the company's Web site. While
security experts said they were astounded that both companies had
distributed software containing a well-known type of program-design error,
several security specialists attributed the flaw to a heated competition
between Microsoft and Netscape for domination of the Internet market.
[SOURCE: New York Times (A1,D20), AUTHOR: John Markoff]
http://www.nytimes.com/library/tech/98/07/biztech/articles/29email-flaw....

CONGRESS LAX ON PRIVACY ISSUE, REPORT SAYS
ISSUE: Privacy
The Center for Public Integrity, in a new report titled Nothing Sacred: The
Politics of Privacy, finds that Congress does not protect the privacy of
Americans as well as it could and often sides with commercial interests. [Go
figure] In recent years Congress has passed legislation with anti-privacy
elements while letting pro-privacy legislation languish. The first hearings
on abuses of medical information were held 27 years ago, but Congress has
never acted on the issue. "Time and again . . . Congress has put the
economic interests of various privacy invaders ahead of the privacy interests of
the American public," said Charles Lewis, chairman and executive director of
the Washington-based research organization. "When it comes to privacy, in
fact, the agenda in Congress today seems to be set mostly by commercial
interests."
[SOURCE: Chicago Tribune (Sec 1, p.10), AUTHOR: Frank James]
http://chicagotribune.com/textversion/article/0,1492,SAV-9807290176,00.html

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
So, this is different. We'd like your comments on the new Headlines format.
Thanks for your help as we try to improve this service and make it more
readable ('cause we're all about reading here at Headlines). Please send
comments to kevint( at )benton.org.

Communications-related Headlines for 7/28/98

UNIVERSAL SERVICE
Schools and Libraries Wary of Filtering-for-Funds Legislation
(CyberTimes)

MERGERS
Telephone Mergers: A Heated Game of Musical Chairs (NYT)
Industry Awaits Toll as Telecom Giants Join (ChiTrib)
Bell Atlantic and GTE Won't Comment on Merger Rumors
(TelecomAM)
Two Phone Giants Reported Merging in $52 Billion Deal (NYT)
Bell Atlantic and GTE Agree on a Merger (WSJ)
GTE to be Acquired by Bell Atlantic (WP)

COMPETITION
Kennard Says FCC Won't Curb Local Competition for Sec. 706
(TelecomAM)

LEGISLATION
House to Take Up Commerce Appropriations Bill This Week
(TelecomAM)

DIGITAL TV
Fees Weighed for High-Definition Television

ENCRYPTION
Harry and Louise Have a New Worry: Encryption (WP)

ADVERTISING
An Ounce Or Two of Suspicion (WP)

==================
UNIVERSAL SERVICE
==================

SCHOOLS AND LIBRARIES WARY OF FILTERING-FOR-FUNDS LEGISLATION
ISSUE: Universal Service
Last week the Senate approved legislation called the Internet School
Filtering Act. If this legislation becomes law, schools and libraries that
accept federal "E-Rate" subsidies would be required to install filtering
software on computers linked to the Internet. The aim of the bill,
introduced by Senator Ernest Hollings (D-SC) and Senator John McCain (R-AZ),
is to keep minors away from pornography and other inappropriate material
online. But critics of the legislation argue that decisions of this type
should be left in local hands and not be required by the federal government.
This is especially important, they say, because of the controversial
elements surrounding filtering software programs.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
http://www.nytimes.com/library/tech/98/07/cyber/articles/28filters.html

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

TELEPHONE MERGERS: A HEATED GAME OF MUSICAL CHAIRS
ISSUE: Mergers
The Bell Atlantic/GTE merger announcement is just the latest in a torrent of
multibillion-dollar mergers taking place in the telecommunications industry.
Companies are scrambling for scale as they work to offer bundles of voice,
data and video services to customers that will allow them to remain at the
"top tier of communications carriers in the next millennium." It isn't
difficult to understand this competitive anxiety when you look at the
numbers. Since 1996, the nation's eight largest local phone companies have
become four. And the nation's four largest long-distance companies have
become three, with one of the three, AT&T, planning to acquire
Tele-Communications Inc. and engage in an international joint venture with
British Telecommunications. What's next? The next stage may well be big
international alliances for local phone companies. "Phone companies like SBC
and Bell Atlantic have their eyes on the next round, which is when they ask
permission to link to foreign carriers," said Dwight Allen, a
telecommunications consultant for Deloitte & Touch. "They are trying to
educate the regulators that what in unthinkably large today might not be
adequate tomorrow."
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
http://www.nytimes.com/library/tech/98/07/biztech/articles/28impact.html

INDUSTRY AWAITS TOLL AS TELECOM GIANTS JOIN
ISSUE: Mergers
At the same time SBC and Ameritech are filing formal merger applications
with state and federal regulators, AT&T and British Telecom announce a joint
deal, and reports indicate that Bell Atlantic and GTE are talking deal. Are
these telecom giants gearing up for competition or they trying to get big
enough so no one can compete with them? "The answer is, nobody knows," Van
writes. America's $170 billion phone industry is headed into unchartered
territory. "There's a basic fallacy in the law," said Jim Freeze, a senior
analyst with Forrester Research based in Cambridge, Mass. "These mergers do
nothing to facilitate competition, and nothing will, until Congress
addresses this fallacy. The monopolies must be split into a regulated
wholesale business and unregulated retail business to make competition occur."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9807280077,00.html

BELL ATLANTIC AND GTE WON'T COMMENT ON MERGER RUMORS
ISSUE: Mergers
Bell Atlantic and GTE declined to answer rumors about reported merger talks
between the two companies. House Telecom Subcommittee Chairman Billy Tauzin
(R-LA) said that if true, "it
raises the stakes in the consolidation poker game." Rep Tauzin said the
merger will
win regulatory approval if the two companies can demonstrate that being bigger
provides more consumer choice. "A combined GTE and Bell Atlantic would, in my
opinion, give the long distance carriers a run for their money," Rep Tauzin
said.
"This only points out what I have been saying all along: If the FCC won't
allow the regional Bell companies into the long distance market, they are
going to merge their way into it instead." Bell Atlantic is the dominant
local telephone carrier on the East Coast in 13 states and Washington, D.C.
from Maine to Virginia. GTE has operations in 28 states, including in Bell
Atlantic's states of Pennsylvania and Virginia.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

TWO PHONE GIANTS REPORTED MERGING IN $52 BILLION DEAL
ISSUE: Mergers
Bell Atlantic Corp., the primary provider of local phone services from Maine
to Virginia, has agreed to acquire GTE Corp., the nation's largest
independent local and long-distance company, for $52.8 billion in stock,
said executives close to the negotiations yesterday. The merger would mean
little in the short run for most of Bell Atlantic's residential customers.
"But the companies are likely to assert that their combined financial muscle
will allow them to accelerate the deployment of expensive high-speed
Internet services and to compete in local phone markets dominated by other
Bells." Most analysts say that within the next few years they expect the
global telecommunications market to be dominated by a handful of
international giants.
[SOURCE: New York Times (C6), AUTHOR: Seth Schiesel & Laura M. Holson]
http://www.nytimes.com/library/tech/98/07/biztech/articles/28phone.html

BELL ATLANTIC AND GTE AGREE ON A MERGER
ISSUE: Merger
The boards of GTE Corp. and Bell Atlantic Corp. approved a $55 billion stock
swap yesterday that will bring together GTE's local, long-distance, wireless
and Internet "offerings" with Bell Atlantic's local and wireless service.
The partners are hoping to create a telecommunications giant for the 21st
century. They may however, get caught in regulations that restrict the Baby
Bells from offering long-distance phone service. The planned deal could
raise calls for the new company to divest itself of assets, such as some of
its wireless or long-distance operations.
[SOURCE: Wall Street Journal (A3), AUTHOR: Jared Sandberg & Steven Lipin]
http://wsj.com/

GTE TO BE Acquired BY BELL ATLANTIC
ISSUE: Telephony/Mergers
Local phone giant, Bell Atlantic Corp., will today announce plans to buy GTE
Corp. in a record $52 billion deal. This merger is one of the largest in a
recent wave of telecommunications consolidation spawned by the 1996
Telecommunications Act. While industry executives claim that larger firms
will be able to offer services at a lower cost, consumer advocates worry
about the impact of the dozen-plus telecom mergers announced in the two
years since the law was past. According to Mark Cooper, research director
for the Consumer Federation of America, "There comes a point where too big
is bad, and this is it." He suggests that local phone mergers are creating
"regional giants that ultimately control Internet access as well as phone
service."
[SOURCE: Washington Post A1, A8 AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/28/035l-072898-idx.html

============
COMPETITION
============

KENNARD SAYS FCC WON'T CURB LOCAL COMPETITION GOALS FOR SEC. 706
ISSUE: Competition/Infrastructure
FCC Chairman Bill Kennard told state regulators at a National Association of
Regulatory Utility Commissioners (NARUC) meeting July 27 that the Commission
will not stop enforcing Telecom Act sections that call for local phone
competition in order to meet the Section 706 mandate that the agency
encourage the deployment of high-speed networks: "I have never
departed from these bedrock requirements of the Act and I would not propose
that we depart from them in the future....I find no exception in the Act for
data as opposed to voice or for equipment investments made after the Act's
passage as opposed to before the Act." Chairman Kennard said that local
competition is vital to deployment of broadband technology to the home. [See
full text of speech at http://www.fcc.gov/Speeches/Kennard/spwek822.html]
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

============
LEGISLATION
============

HOUSE TO TAKE UP COMMERCE APPROPRIATIONS BILL THIS WEEK
ISSUE: Legislation
The House agenda this week includes the Commerce Appropriations bill
(HR-4276) which proposes reductions of $5 million for the FCC and $4 million
for the National Telecom and Information Administration's (NTIA) information
infrastructure grant program (TIIAP). The Senate version of the bill
(S-2260) would restore $9 million to the NTIA program and give the FCC a
slight budget increase. The Senate bill lifted restrictions on TIIAP that
would have prevented schools and libraries receiving e-rate funding from
being eligible to receive a TIIAP grant.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

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

FEES WEIGHTED FOR HIGH-DEFINITION TELEVISION
ISSUE: DTV
The major broadcast networks and TCI cable are discussing a deal that would
make digital broadcast stations a "premium" service that subscribers would
have to pay $10-$12 a month to receive. While some critics say that
broadcasters have be given free slices of airwaves which they should not be
allowed to turn around and sell to the public, other say that this type of
pay-per-view system might be useful in the early stages of transition to
digital. Gigi Sohn of the Media Access Project says that the digital
transition brings up some difficult questions, "Should cable operators have
to carry two signals [the existing signal plus a the digital one]? My take
in the early years is no, certainly not if it means bumping CSPAN off the
cable system."
[SOURCE: Washington Post E3, AUTHOR: Paul Farhi ]
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/28/156l-072898-idx.html

===========
ENCRYPTION
===========

HARRY AND LOUISE HAVE A NEW WORRY: ENCRYPTION
ISSUE: Encryption
The computer industry is concerned that they will lose out on business to
foreign customers because of U.S. government regulations limiting export of
encryption technology. To date, the tech industry has not had much success
in convincing Congress to pass legislation relaxing such regulations. So
now, a coalition of about 90 companies called Americans for Computer Privacy
(ACP) is working towards making encryption a consumer issue. Over the next
two weeks, the coalition is spending $1 million on print ads and television
spots to air on Washington stations, as well as CNN and CNBC. The ads will
feature a middle-aged couple sitting in their living room discussing the
issue of encryption. "The challenge is to bring this issue home," said Ed
Gillespie, ACP's executive director and former communications director for
the Republican National Committee. "We want to make sure policymakers and
consumers understand the importance of encryption and how it matters to them
in their everyday lives." ACP hopes the ads will spur Congress to pass
legislation that would loosen export restrictions.
[SOURCE: Washington Post (E1,E2), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/28/108l-072898-idx.html

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

AN OUNCE OF TWO OR SUSPICION
ISSUE: Advertising
The Distilled Spirits Council of the United States began airing ads last
week that more closely resemble public service announcements than liquor
commercials. The advertisements shows a glass beer, wine, and cocktail being
served to bar patrons, while a voice-over explains that "part of drinking
responsibly is knowing that alcohol is alcohol" regardless of what form it
comes in. A close up of easily identified premium-brand liquor bottles is
the ad's closing shot. Critics claim that the commercial is bold attempt of
the liquor industry to re-introduce hard alcohol ads on T.V. "The impact of
the ad is an endorsement of drinking in general. Their goal is to open up the
opportunity to get more liquor advertising on TV," says Laurie Leiber,
director on the nonprofit group, Center on Alcohol Advertising.
[SOURCE: Washington Post E1,E4 AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/28/123l-072898-idx.html

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
So, this is different. We'd like your comments on the new Headlines format.
Thanks for your help as we try to improve this service and make it more
readable ('cause we're all about reading here at Headlines). Please send
comments to kevint( at )benton.org.

Communications-related Headlines for 7/27/98

Mergers
AT&T and British Telecom Merge Overseas Operations (NYT)
AT&T and BT to Form World-Wide Alliance (WSJ)
British Telecom, AT&T Join Forces (WP)
Bell Atlantic, GTE Hold Merger Talks (WSJ)

Legislation
Senate's Internet Legislation Under Fire (NYT)
BYTES: Wired for the 2000 Census (WP)
House, Senate Find Compromise on Bill Lifting Visa Limit on
High-Tech Workers (WSJ)

Internet
State Legislators Oppose Internet Regulation (TelecomAM)
Identifying the Audience for Online News (NYT)
Got Ad Space? Run a Public Service Banner (CyberTimes)

Infrastructure
Roadblocks slow progress toward high-speed phone lines
(Chicago Trib)

Television
Forget Bang: Fall TV Lineup Barely Musters A Whimper (NYT)
Broadcasters Cry 'Foul" Over V-chip Sets (B&C)
Honey, they shrunk the kids syndication market (B&C)
Cable Scores Win on Leased Access (B&C)
Make or Break for wireless cable (B&C)

Info Tech/Privacy
Companies Prioritize Toll-Free Customers (WP)

Philanthropy
AT&T Tops Philanthropy List (TelecomAM)

** Mergers **

Title: AT&T and British Telecom Merge Overseas Operations
Source: New York Times (A1)
http://www.nytimes.com/library/tech/98/07/biztech/articles/27att.html
Author: Seth Schiesel
Issue: Mergers
Description: AT&T and British Telecommunications PLC have announced a deal
to merge most of their international operations into a jointly owned company
that will have $10 billion in revenue. The new company's target market will
be multinational corporations -- serving far-flung offices by seamlessly
connecting advanced data networks. "This is about following our customers
into a world that is opening its markets," C. Michael Armstrong, AT&T's
chairman, said Sunday in an interview. "This puts meat underneath the
concept that we would be doing everything that we could to enable a global
universal service."

Title: AT&T and BT to Form World-Wide Alliance
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Gautam Naik
Issue: Mergers
Description: AT&T Corp. and British Telecommunications PLC announced plans
to form a global phone venture to provide low-cost voice, data and video
services to multinational customers. Executives from both companies have
expressed confidence that the currently unnamed venture will serve as a
platform for both carriers' aspirations. If the plan works, it will help to
revive AT&T's "flagging international strategy" while providing BT with
"added firepower to invade foreign markets in the wake of its failed
attempt" to acquire MCI Communications Corp. "We are going to build a
world-wide network for the 21st century. It's a proud, historic moment,"
said John D. Zeglis, president of AT&T, at a news conference in London.

Title: British Telecom, AT&T Join Forces
Source: Washington Post (A1, A14)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/27/146l-072798-idx.html
Author: Mike Mills
Issue: Mergers
Description: Yesterday, British Telecom and AT&T Corp. announced plans to
join in a global alliance that will provide $10 billion a year in telephone,
Internet and data services to multinational business clients. The new
partners plan to spend $1 billion annually to upgrade their networks. The
deal must be approved by British regulators, the European Union, and the
U.S. Department of Justice.

Title: Bell Atlantic, GTE Hold Merger Talks
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Steven Lipin
Issue: Mergers
Description: Bell Atlantic Corp. and GTE Corp. have been discussing a
possible merger valued between $52.5 billion and $55 billion, according to
people close to the talks. The combined companies would be the latest in a
series of megamergers that are reshaping the telecommunications landscape.
The merger would create a company with "$53 billion in revenue, 62 million
local telephone lines and give Bell Atlantic a springboard for entering
coveted long-distance markets."

** Legislation **

Title: Senate's Internet Legislation Under Fire
Source: New York Times (C5)
http://www.nytimes.com/library/tech/98/07/biztech/articles/27congress.html
Author: Jeri Clausing
Issue: Legislation
Description: Last week a number of Internet-related bills moved thru the
Senate: 1) Sen John McCain (R-AZ) offered his Internet filtering bill as an
amendment to the $33 billion spending plan for the Departments of Commerce,
State and Justice -- the bill would require schools and libraries receiving
Federal funds to discount connections to the Internet to install filtering
software on computers that provide access to the Internet; 2) attached to
the same spending bill was the "Communications Decency Act II," a bill
offered by Sen Daniel Coat (R-IN) that would make it a crime or commercial
websites to distribute material that is harmful to minors; 3) Sen Lauch
Faircloth (R-NC) offered legislation that would give the Federal Bureau of
Investigation access to the customer information records of Internet Service
Providers without a court order while investigating pedophilia; and 4) Sen
Jon Kyl introduced a bill that would ban Internet gambling. All the bills
promised to protect children. Opponents say they raise complicated free
speech, privacy, censorship and regulatory issues. Only Sen Kyl's bill was
debated on the Senate floor. "It is an election year coming up, and let's be
kind and say they like to put on a good face to their community, even if
they do things that damage their community in the long run, which these do,"
said Dave Farber, a professor of computer science at the University of
Pennsylvania and a board member of the Electronic Frontier Foundation. "But
there are nicer ways to protect our children than doing things that take
away their rights when they grow up."

Title: BYTES: Wired for the 2000 Census
Source: Washington Post (F5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/27/017l-072798-idx.html
Author: Washington Post Staff
Issue: Internet/Demography
Description: Rep. Rick White (R-Wash.) and Dan Miller (R-Fla.) have
introduced legislation that would add two questions about access to
information technologies to the Census Bureau's 2000 "long form" survey. The
questions would ask if households have a personal computer and if it is
connected to the Internet.

Title: House, Senate Find Compromise on Bill Lifting Visa Limit on
High-Tech Workers
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Majorie Valbrun
Issue: Jobs
Description: The House and Senate have reached an agreement that would allow
high-tech companies currently experiencing labor shortages to hire skilled
foreign workers on a temporary basis. Among other things, the compromise
requires companies to prove that they are not hiring specialized foreign
workers, such as engineers and computer programmers, to replace better-paid
U.S. workers. The new agreement includes more job protection for American
workers and oversight of companies that rely heavily on H-1B visas,
renewable visas granted for three-year periods. Senator Spencer Abraham
(R-MI), chairman of the Judiciary Committee's immigration subcommittee, said
about the bill: "There is probably no more important legislation that the
Congress will pass this year that will create jobs and continue the enormous
growth of our high-tech and computer industries."

** Internet **

Title: State Legislators Oppose Internet Regulation
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Internet Regulation
Description: "Advanced technologies, including encryption, that empower
people to protect themselves, should be available in the marketplace without
onerous government controls, restrictions, technical mandates or threats."
So reads a resolution adopted by the National Conference of State
Legislatures (NCSL). The resolution endorsed the Internet tax legislation
pending in the House that calls for a three-year moratorium. In addition,
NCSL said, the federal government should "rigorously protect freedom of
speech" on the Internet. It said new digital technologies "adequately enable
individuals, families and schools to protect
themselves and students from communications and materials they deem
offensive or
inappropriate."

Title: Identifying the Audience for Online News
Source: New York Times (C9)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/27news.html
Author: Felicity Barringer
Issue: Internet
Description: "Like a photograph developing in the darkroom, the identity and
habits of Internet news audiences is not changing so much as it is becoming
clearer with every new crisis and every new computer user. By and large, it
is made up of younger men with college degrees and professional jobs. They
check in on the news from work, not home, and even if they are drawn into a
site by a crisis, they stay around to pursue very particular individual
interests." Big news events -- like the shooting at the Capitol building on
Friday -- draw a large number of readers to a site for breaking news."It's a
huge difference," said Scott Woelfel, editor in chief of cnn.com. "Until
recently, the only news that penetrated into the workplace was radio. Now
they go in and spend what could be hours during the day" checking into the
news. "It's no surprise they don't watch the nightly news when they go
back," he added. "They heard or read all those stories hours before." Story
continues with statistical look at who get news online and what they are
looking for.

Title: Got Ad Space? Run a Public Service Banner
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/26advertising.html
Author: Bob Tedeschi
Issue: Advertising/Nonprofits
Description: A growing number of public service advertisements are being
distributed on the Web by the Advertising Council, a nonprofit organization
that has created and distributed public service communication to print and
broadcast media for years. "Until recently, Web sites have been extremely
slow to use PSA's, but industry analysts say that with revenues growing,
more sites can now afford to turn their attention to such community-minded
initiatives." "There's been an overwhelmingly positive response to the idea
of PSA's," said Eduardo Samame, director of business development at
NetGravity and a member of the Internet Advertising Bureau (IAB), a trade
group that promotes Internet advertising. Noting the IAB's request this past
December for members to donate 5 percent of excess ad space to PSA's, he
said, "It's just a matter of time before we see more of them." According to
the Ad Council, in part as a result of the IAB's initiative, the value of
donated online advertising space is expected to double to over $120 million
this year. Some analysts say that it may be a tough climb given that most
sites are currently focusing on how to be profitable. But the Ad Council is
working diligently to capture that market. It launched a new version of its
Web site on Monday that is designed to enable other sites to use PSAs more
easily. And along with the IAB, the Ad Council has increased its efforts to
more aggressively recruit sites for PSAs.

** Infrastructure **

Title: Roadblocks slow progress toward high-speed phone lines
Source: Chicago Tribune (Sec 4, p.2)
http://chicagotribune.com/textversion/article/0,1492,SAV-9807270006,00.html
Author: Jon Van
Issue: Infrastructure
Description: With cable operators (soon to include #1 long distance provider
AT&T) planning on rolling out high-speed Internet hook-ups on their systems,
local phone companies are turning to Digital subscriber line technology
(known as DSL) to compete. But there may be problems. Local phone companies
are not sure which of their customers' phone lines are ready to switch to
DSL. GTE has created technology that examines the company's infrastructure
and has found that 60-70% of its customers can be upgraded. Wiring inside
homes presents another challenge.

** Television **

Title: Forget Bang: Fall TV Lineup Barely Musters A Whimper
Source: New York Times (C1)
http://www.nytimes.com/yr/mo/day/news/financial/tv-comeback-media.html
Author: Bill Carter
Issue: Television
Description: Summer ratings are at an all-time low, viewers continue to
defect to cable -- broadcast television needs a big boost from the fall
schedule. But the schedule is unlikely to deliver: "The quality of the new
shows this year is absolutely horrible," the executive said, speaking on the
condition of anonymity in part because he pointedly included programs that
he had decided to put on the air. "There is exactly one outstanding pilot
that got made, and that was on the WB" network. An executive at Fox is
suggesting changes in the industry that would foster programming development
throughout the year and create more original programming for the summer months.

Title: Broadcasters Cry 'Foul" Over V-chip Sets
Source: Broadcasting&Cable (p14)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: V-Chip/TV Rating System
Description: "Set manufacturers -- specifically Thomson with others
appearing to be ready to come on board -- have said they will include a
feature in new V-chip enabled digital TV sets that would allow viewers to
block unrated programming, such as news and sports." Angry broadcasters and
an upset cable industry, immediately discredited the idea, calling it a
threat to the new ratings system that was established last summer by an
industry coalition and family advocates. "The proposed action by the
consumer electronics industry goes beyond an agreement between the
entertainment community and children's advocacy groups," said NAB President
Edward Fritts. "As a result of the FCC's failure to implement a separate
agreement between the entertainment community and television set
manufacturers, this action could place the TV program rating system in
jeopardy." In March the FCC left open whether sets could block unrated
programming. "[W]e will not prohibit features that allow the user to
reprogram the receiver to block programs that are not rated," the FCC wrote
in its March decision. Gary Shapiro, president of the Consumer Electronics
Manufacturers Association, says that if broadcasters "don't like the FCC
rulings, I don't know why they didn't challenge it." A broadcast source says
that broadcasters "Thought at the time that we had an understanding with the
manufacturers, but we did alert the commission" that this problem of
blocking unrated content might come up.

Title: Honey, they shrunk the kids syndication market
Source: Broadcasting&Cable
http://www.broadcastingcable.com/
Author: Joe Schlosser
Issue: Children's Television
Description: Hollywood syndicators have been hit hard by increasing
competition in the provision of children's programming. Children's cable
networks, Internet and home video all pose a threat to the future of
children's syndication. Last year's FCC mandate, of three-hours-per-week of
educational children's programming on TV stations, was expected to help
smaller syndicators. Instead, claim syndicators, their shows are having a
hard time staying alive because the networks will only air them during
non-economically viable time slots. Despite complaints from syndicators, the
FCC has no plans to require networks to carry children's programming during
more favorable periods.

Title: Cable Scores Win on Leased Access
Source: Broadcasting&Cable (p12)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Cable Regulation
Description: On Friday, a three-judge panel of the U.S. Court of Appeals in
Washington D.C. court rejected challenges to the FCC's rules for setting
cable leased-access rates. Last year, regulators adopted a new formula for
setting the leased-access rates in an effort to lower the rates the
programmers pay to lease capacity on cable systems. In their ruling, the
judges disagreed. "The commission's choice of the average implicit fee
formula was a reasonable means of accomplishing the [law's] purposes," the
court said. In the challenge, brought forth by low-power TV operators, they
insisted that regulators should have focused on promoting program diversity
instead of protecting the cable operators from financial hardship. But the
judges said that the commission took steps to promote program diversity.
"Many of the changes to its initial rulemaking were designed to improve
conditions for leased access," the court said. "These changes belie
petitioners' contention that the commission ignored the interests of
leased-access programmers."

Title: Make or Break for wireless cable
Source: Broadcasting&Cable
http://www.broadcastingcable.com/
Author: Price Colman
Issue: Broadband
Description: Despite dismal stock performance, many wireless cable companies
are still optimistic about their future providing high-speed data services.
One reason for hope is the belief that the FCC will soon authorize two-way
digital transmission, which would significantly increase the value of
wireless spectrum. Like the rest of the telecommunications industry,
wireless cable providers see a future of bundled services, but they are
unlikely to have much success alone. According to John Mansell, wireless
analyst at Paul Kagan Associates, "The trick is to marry multiple technologies
and multiple frequencies to provide bundled services."

** Info Tech/Privacy **

Title: Companies Prioritize Toll-Free Customers
Source: Washington Post (A1, A9)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/27/152l-072798-idx.html
Author: Caroline E. Mayer
Issue: Info Tech/Privacy
Description: Thanks to new telephone technologies, businesses are
increasingly able to differentiate among customers calling in on toll-free
numbers. Through caller ID or client account numbers entered on their
telephones, companies are able to quickly address customers needs, like
directing Spanish-speakers to representatives who speak their language.
Firms also use customer information to prioritize calls. More lucrative
clients can expect faster service. "Democracy is great for countries, but
it's not appropriate for companies," says Max Fiszer, president of a company
that sells customer call center products. "Companies need to distinguish
between those customers that provide them with the greatest degree of
revenues and profits and those that provide only occasional sales." It may
be futile for customer to attempt to thwart this invasion of privacy by
programming their phones to bar caller ID. Dan Yates, of Pacific Corp.
electric company, warns that "Any time you call a toll-free number, the
company you're calling is very likely to know what your phone number is even
if you think you've blocked your caller ID, because the company paying for
the call has control over that."

** Philanthropy **

Title: AT&T Tops Philanthropy List
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Philanthropy
Description: Chronicle of Philanthropy survey finds that AT&T and NBC parent
GE were the biggest charitable cash givers in the telecom industry in 1997.
AT&T gave $52.7 million,
up 9.4% from 1996, while GE was just behind at $50.2 million, up 5.7%.
Microsoft, up 26%, gave $14 million and $45.2 million in noncash gifts such
as software. Trailing the list were Sprint, up 1.9% to $6.6 million, and
MCI, no change at $5 million.; TCI wasn't surveyed.
*********
We'll be back tomorrow with a new look.

Communications-related Headlines for 7/24/98

Meetings
Meeting: Advisory Committee on Public Interest
Obligations of Digital Television Broadcasters (NTIA)
Meeting of Federal-State Joint Board on Universal Service (FCC)

Telephony
Bell Atlantic Asks FCC for Special Approval of Interstate
Data Links (WP)
Privacy
Bill Would Allow Sale of Patient Data

Copyright
Protecting Digital Copyrights (NYT)

Internet
Children and the Net (WP)
Senate votes to ban gambling on Internet (ChiTrib)
Senate Approves Ban on Internet Gambling (WP)

Mergers
Approval of AT&T-Teleport Merger (FCC)
AT&T Completes Takeover of Teleport (NYT)

** Meetings **

Title: Meeting: Advisory Committee on Public Interest
Obligations of Digital Television Broadcasters
Source: NTIA
http://www.ntia.doc.gov/pubintadvcom/augmtg/fedregister.htm
Issue: Digital Television
Description: The next meeting of the Advisory Committee on Public Interest
Obligations of Digital Television Broadcasters is scheduled for August 10,
1998, in Washington DC; the Federal Register notice
http://www.ntia.doc.gov/pubintadvcom/augmtg/fedregister.htm has additional
information.

Title: Meeting of Federal-State Joint Board on Universal Service
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da981394.html
Issue: Universal Service
Description: The Federal-State Joint Board on Universal Service will hold an
open meeting on Wednesday, July 29, 1998, from 12:30 to 3:00 pm, at the
Westin Seattle Hotel, 1900 Fifth Ave., Seattle, Washington 98101. At the
meeting, the Federal-State Joint Board will address issues contained in the
Commission's Joint Board Referral Order.(1) In the Joint Board Referral
Order, the Commission requests that the Joint Board provide a recommended
decision on issues pertaining to the appropriate methodology for determining
high cost support for non-rural local exchange carriers. This meeting will
be open to the public.

** Telephony **

Title: Bell Atlantic Asks FCC for Special Approval of Interstate Data Links
Source: Washington Post (F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/24/048l-072498-idx.html
Author: Mike Mills
Issue: Telephony/DSL Services
Description: Bell Atlantic has filed a request for the FCC to make an
exception to the rules prohibiting Bells from carrying voice or data traffic
across state lines. Bell Atlantic claims that they have heavily wired West
Virginia with high-speed DSL service but are prevented from further
development because their digital links must stop at the border. "What we
have here are six-lane superhighways in West Virginia leading into two-lane
country roads leading in and out of the state," describes Dennis Bone,
President and chief executive of Bell Atlantic-West Virginia. Critics of the
Bells argue that they should be required to sell of their data service
affiliates, including any DSL services, before they can enter the long
distance the market.

** Privacy **

Title: Bill Would Allow Sale of Patient Data
Source: Washington Post (F1)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/24/174l-072498-idx.html
Author: John Schwartz
Issue: Health/Privacy
Description: The Patient Protection Act of 1998 will likely reach the House
floor as soon as today. The Republican sponsored measure would allow
hospitals, insurance companies, HMOs, doctors, and pharmacies to sell or
disclose patient data. Privacy advocates are worried that the bill would
result in patients' reluctance to speak openly with their health care
providers. The Director of the Health Privacy Project at Georgetown
University Medical Center, Janlori Gold, says: "It's a serious interference
with the doctor-patient relationship."

** Copyright **

Title: Protecting Digital Copyrights
Source: New York Times (A24)
http://www.nytimes.com/yr/mo/day/editorial/24fri1.html
Author: NYT Editorial Staff
Issue: Copyright
Description: "Traditional copyright concepts that have served this nation
well for centuries should guide the debate on copyright in the digital
universe." This past spring, digital copyright legislation passed the Senate
and House Judiciary Committee that would protect movies, music and other
intellectual property from piracy. But there continues to be controversy
surrounding a provision in the legislation that would make it a crime to
"circumvent encryption used to control access to digital material or to
manufacture or sell devices that could be used to circumvent protection
measures." Music and movie producers argue that making circumvention illegal
is the only way to prevent consumer theft of their products. But libraries
and schools fear that the prohibition is so broad that their access to
electronic information would be greatly limited in comparison to what the
copyright law would otherwise allow. The existing law ensures producers of
artistic material the right to profit from their creative works, but it does
not allow a creator to control who looks at the material or prevent it from
being lent or circulated to others. Thus a library can purchase a book
patrons can borrow it or a teacher can copy material from it for classroom
use. "Preserving these user rights is important in the digital world where
copyright owners, with the right technology, could limit or prevent access
to information. The content producers dismiss fears that the Internet could
become a strictly pay-for-use world as unrealistic, but neither they nor
Congress can predict how the Internet will develop. That is why legislation
needs to be flexible enough to deal with rapid evolution in technology and
electronic commerce."

** Internet **

Title: Children and the Net
Source: Washington Post (A18)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/24/179l-072498-idx.html
Author: WP Editorial Staff
Issue: Internet/Free Speech
Description: While both of the Internet measures passed by the Senate this
week are intended to protect children, they also possess a "threat to free
speech and to the Net's potential as an educational tool." One measure will
require schools and libraries to install filtering software in order to
receive the 'e-rate' subsidy for Internet access. The existing commercial
software has the potential to "use key words and/or political bias to screen
out innumerable sites, often without indication which or why." In addition,
the Senate passed a revised form of the Communications Decency act which
will require commercial sites to block access to sites containing material
deemed to be harmful to minors. "Both show how easy it is to erode the once
unquestioned claims that the Internet would open up the world to kids and
adults alike."

Title: Senate votes to ban gambling on Internet
Source: Chicago Tribune (Sec 1, p.6)
http://chicago.tribune.com
Author: Associated Press
Issue: Internet Regulation
Description: In a 90-10 vote, the Senate passed a bill that would shut down
the billion-dollar Internet gambling business. Said Sen Jon Kyl (R-AZ),
"More than a billion dollars will be gambled over the Internet. Internet
gambling is unregulated, accessible to minors, addictive, subject to abuse
for fraudulent purposes like money laundering, evasive of state gambling
laws -- and already illegal at the federal level in many cases." The bill
will extend to the Internet -- and other emerging technologies -- the
current federal ban on interstate gambling on sports by telephone or wire.

Title: Senate Approves Ban on Internet Gambling
Source: Washington Post (A5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/24/084l-072498-idx.html
Author: News Services
Issue: Internet/Gambling
Description: Yesterday, the Senate overwhelmingly approved a law to prohibit
gambling on the Internet. The measure is an extension of an existing ban on
gambling by telephone or wire. States will still be allowed to use the
Internet for lotteries and off-track-betting. A similar measure is pending
in the House.

** Mergers **

Title: Approval of AT&T-Teleport Merger
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8051.html
Issue: Mergers
Description: The Commission has approved the transfer of communications
licenses and authorizations from Teleport Communications Group, Inc. to AT&T
Corp., thereby granting the companies' merger application. In so doing, the
Commission noted that the merger will likely produce a competitor that can
more quickly provide business and residential consumers with a choice of
local telephone service providers.

Title: AT&T Completes Takeover of Teleport
Source: New York Times (AP-Business Index)
http://www.nytimes.com/aponline/f/AP-ATT-Teleport.html
Author: The Associated Press
Issue: Mergers
Description: The Federal Communications Commission yesterday approved AT&T's
takeover of Teleport Communications valued at $11.3 billion. "The commission
concluded that the merger is unlikely to have any anti competitive effects,"
the FCC said in a statement. AT&T has said that the merger will allow it to
participate in the most lucrative part of the telecommunications industry by
selling all-in-one packages of long-distance, local and data communications
services to businesses. "We're giving customers simplicity, convenience and
choice," said AT&T Chairman Michael Armstrong. "It's one-stop shopping for
local and long-distance services, just for starters." In addition to its
focus on business customers, AT&T says it still plans to expand into the
residential side of local service.

******************************************
...and we're outta here. Have a great weekend; we'll be back Monday.

Communications-related Headlines for 7/23/98

Free Time for Candidates
Free TV time plans are making inroads (ChiTrib)

Universal Service
News Digest: E-Rate Legislation (WP)

Regulation
Ruling: Internet calls are local (ChiTrib)
U.S. Court in Illinois Says ISP Calls are Local Traffic
(TelecomAM)
Telephone Carriers To Adopt Policy On 'Cramming' (WSJ)
847 area code 'overlay' is delayed until next year (ChiTrib)

HDTV
HDTV: It is Not Worth Losing C-SPAN (WP)
Spanish Digital TV Services To Merge After Costly Fight (NYT)

New Technology
Interplanetary Internet In the Works (CyberTimes)

Lifestyles
Talk, Type, Read E-Mail: The Trials of Multitasking (NYT)

** Free Time for Candidates **

Title: Free TV time plans are making inroads
Source: Chicago Tribune (Sec 3, p.3)
http://chicago.tribune.com
Author: Tim Jones
Issue: Free Time for Candidates
Description: New York-based television ownership group Granite Broadcasting
has announced its stations in Illinois, New York and California will give
candidates for governor and the US Senate two minutes of free time per week
in the six weeks before the general election this November. Granite said it
will make similar offers to candidates for Congress in some markets.
Granite's CEO Don Cornwell said, "I'm absolutely opposed to the government
mandating free political time. I think it's unconstitutional. Hopefully,
we'll see other TV [ownership] groups step forward and experiment." The
lobbying arm for broadcasters, the National Association of Broadcasters,
opposes free time for candidates.

** Universal Service **

Title: News Digest: E-Rate Legislation
Source: Washington Post (E1)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/23/178l-072398-idx.html
Author: News services and Washington Post Staff Writers
Issue: Universal Service
Description: Today, Sen.Conrad Burns (R-Mont.) and Rep. Billy Tauzin
(R-LA) will introduce legislation that would direct half of the 3 percent
current federal telephone excise tax into the schools and libraries
universal service fund. The "e-rate" program was cut in half last month as a
result of charges that phone companies have been forced to increase customer
rates in order to fund schools and libraries access to the Internet.

** Regulation **

Title: Ruling: Internet calls are local
Source: Chicago Tribune
http://chicagotribune.com/business/businessnews/article/0,1051,ART-12229,00
.html
Author: Jon Van
Issue: Telephone Regulation
Description: Judge David Coar of the U.S. District Court for the Northern
District of Illinois has ruled that computer dial up calls to the Internet
should be classed as regular, local calls for accounting purposes. The case
involves a significant amount of money as Ameritech will now need to pay
local phone service competitors "reciprocal compensation" for completing the
calls. Judge Coar called the reciprocal compensation agreements arcane and
stayed his order for 35 days so Ameritech may file an appeal.

Title: U.S. Court in Illinois Says ISP Calls are Local Traffic
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Telephone Regulation
Description: Judge David Coar of the U.S. District Court for the Northern
District of Illinois in Chicago ruled July 22 that calls to local numbers of
Illinois Internet service providers (ISP) are local traffic. To date, every
court or state commission that has ruled on this issue has concluded that
ISP calls are local, TelecomAM reports.

Title: Telephone Carriers To Adopt Policy On 'Cramming'
Source: Wall Street Journal (B5)
http://wsj.com/
Author: John Simons
Issue: Local Telephone Service
Description: In an effort to curb "cramming," or the charging of customers
for services they didn't order, regional Bells and other local-phone
carriers yesterday agreed to a set of "best practices" requested by the
Federal Communications Commission. Under the new guidelines, local carriers
will work to give customers a clear, concise description of services being
billed and a full disclosure of terms and conditions. They also must get
customers' written approval before billing for third-party services and
screen third-party products for misleading advertising and billing. The FCC
will continue to monitor cramming complaints and if the industry doesn't
reduce the practice, the agency plans to draft formal regulation.

Title: 847 area code 'overlay' is delayed until next year
Source: Chicago Tribune
http://chicagotribune.com/news/metro/chicago/article/0,1051,ART-12237,00...
Author: Cornelia Grumman
Issue: Telephone Regulation
Description: As the Illinois Commerce Commission and the Citizens Utility
Board, a consumer group, analyze data to see if there really is a phone
number shortage in Chicago's north and northwest suburbs, a new area code
overlay for the area has been delayed until January 23, 1999. "They're
trying to have it both ways," said Seamus Glynn, associate director of CUB.
"They want the public to think they're running out of blocks of numbers, and
they want the Commission to think that as well, but then they themselves
don't take any steps to indicate there's a fear of number exhaust."

** HDTV **

Title: HDTV: It is Not Worth Losing C-SPAN
Source: Washington Post (A19)
http://www.washingtonpost.com/
Author: Lars-Erik Nelson (form the New York Daily News)
Issue: HDTV/ Broadcasting & Cable Regulation
Description: While HDTV will provide viewers with "crystal clarity - like
looking at real life through a sparkling clean window, not a TV screen - and
an uncanny illusion of depth," these visual advances are not worth the loss
of low revenue cable channels like C-SPAN argues Erik-Lars Nelson. If cable
operators are required to carry both digital and analogue broadcast signals
during the transition period to HDTV, there will not be enough room on
cable systems for all the stations they currently provide. Nelson worries
that "The victims will be low-profit, cable only networks like C-SPAN. He
concludes:" HDTV is a sparkling technological promise; but C-SPAN has become
essential to our citizenship."

Title: Spanish Digital TV Services To Merge After Costly Fight
Source: New York Times (D5)
http://www.nytimes.com/yr/mo/day/news/financial/spain-telecom.html
Author: Al Goodman
Issue: HDTV/International
Description: Spain's two digital satellite TV services, Via Digital, owned
by Telefonic, the former state telecommunications company, and Canal
Satelite, owned by Grupo Prisa, the nation's largest private media company,
have announced plans to merge. The announcement marks a truce that will end
a yearlong "bare-knuckles" battle for Spain's new digital television market.

** New Technology **

Title: Interplanetary Internet In the Works
Source: New York Times (Cybertimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/23space.html
Author: Bruno Giussani
Issue: Internet
Description: The "father of the Internet", Vinton Cerf, recently announced
plans to implement an interplanetary Internet system. "One day we may need
to create a localized '.mars' domain name to be used in Internet address,"
he joked at the July 23 Internet Society conference. The plan includes
placing routers, or Internet Interplanetary Gateways (IIG), into space. Cerf
says that IIG technology will guide Internet traffic in space and "could
help solve the problems of high-speed, high-density Internet traffic down
here on Earth."

** Lifestyles **

Title: Talk, Type, Read E-Mail: The Trials of Multitasking
Source: New York Times (E1,E5)
http://www.nytimes.com/library/tech/98/07/circuits/articles/23task.html
Author: Amy Harmon
Issue: Lifestyles
Description: More and more people are developing a fondness for
multitasking. They claim that the ability to do many things at once actually
makes them feel better. "Multitasking -- the word describes how a
microprocessor keeps lots of computer programs running at the same time --
has lately become a way of life for many Americans. Inundated with more
information than ever before and -- perhaps perversely -- prone to equate
productivity with pleasure, many people are quietly adapting the rhythms of
their own behavior to match that of their machines. As a result, the number
of tasks to which people are simultaneously applying themselves is
multiplying like some mutant breed of postmodern rabbit. The shift is driven
by the seductive suggestions implicit in the latest high-tech tools that
they can be used not only for the pedestrian purposes of communications and
information retrieval but also to swindle time." John Robinson, director of
a project at the Univ. of Maryland, devoted to gauging Americans' use of
time, says that this trend "is not new, but it is accelerating. You can't
expand time, so what you try to do is deepen time by doing more things in
the same period." There are questions raised about the toll this jumping
back and forth takes on the human psyche, but more studies into this topic
still need to be done. Earl Hunt, a professor of psychology and computer
science at the Univ. of Washington points out: "Our brains function the same
way the Cro-Magnon brains did so technology isn't going to change that."
Hunt says, "you can do several tasks at once, but not all of them get done
as well. That is why I feel car phones are a bad idea." But of course all
jobs don't need to be done as well as others. Maybe one of the joys of
multitasking, or perhaps one of its perils, is the ability to blend work and
leisure time in ways not previously possible.

************************
Good night, Mr. Shepard.

Communications-related Headlines for 7/22/98

Universal Service
Senate Adopts Internet Legislation to Appropriations Bill
(TelecomAM)
Western Wireless Asks FCC to Change Kansas Universal Service Fund
(TelecomAM)

Internet
2 Bills Target Minors' Internet Access (WP)
Senate Adds Internet Proposals to Spending Bill (CyberTimes)
Bulk E-Mail Become Politicians Tools (CyberTimes)
Internet Companies Move to Safeguard Computer Users' Privacy (WP)

Education
Home Computer Study Leaves Questions (CyberTimes)

Radio
FCC might legitimize radio 'pirates' it now punishes (ChiTrib)

Arts
In Election Year House Authorizes Financing of Arts (NYT)

Telephone/Ownership
Puerto Rico Accepts GTE Group's Bid To Buy Control of Telephone
Company (WSJ)

Advertising
House GOP Plans Major Ad Campaign (WP)

Lifestyles/Internet Use
Hello Mudda, Hello Fadda...E-Mail Quickly, Yadda, Yadda (WSJ)

** Universal Service **

Title: Senate Adopts Internet Legislation to Appropriations Bill
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Internet Regulation/Universal Service
Description: The Senate July 21 adopted without debate two Internet
content-related amendments to an appropriations bill for the Commerce
Department, TelecomAM reports. S-1482, introduced by Senator Dan Coats
(R-IN), would restrict access to Internet content "harmful to minors."
S-1619, introduced by Senate Commerce Committee Chairman John McCain (R-AZ),
would require the use of Internet blocking and filtering software by schools
and libraries that receive universal service discounts know as the erate.

Title: Western Wireless Asks FCC to Change Kansas Universal Service Fund
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: Western Wireless has petitioned the Federal Communications
Commission to preempt Kansas laws and regulatory rules that prevent wireless
carriers from using the state's universal service fund to serve rural and
high-cost consumers. Western Wireless contends that Kansas law and
regulation violate the Telecom Act of 1996 because it is not competitively
neutral and is not based on the actual cost of providing service. On a
statewide basis, only incumbent phone companies can receive universal
service support -- competitors are only eligible to receive support while
serving selected areas of the state. State courts upheld the law setting up
the fund, and related litigation is pending before a U.S. District Court in
Kansas.

** Internet **

Title: 2 Bills Target Minors' Internet Access
Source: Washington Post (A5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/22/097l-072298-idx.html
Author: Juliet Eilperin, John Schwartz, Helen Dewar
Issue: Internet Regulation/Universal Service
Description: Yesterday, the Senate passed two bills that will restrict
minors access to adult materials on the Internet. One measure would make the
granting of "E-Rate" subsidies to public schools and libraries contingent
on the installation of software that blocks minors access to indecent WWW
sites. The second bill is a revised version of the 1996 Communications
Decency Act (CDA) that would make companies responsible for preventing
children from accessing sites that contain material "harmful to minors."

Title: Senate Adds Internet Proposals to Spending Bill
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/22filter.html
Author: Jeri Clausing
Issue: Internet Regulation
Description: On Tuesday, the Senate added two proposals for controlling
children's access to the Internet to a spending bill, "approving without
debate a measure that would make it illegal for commercial Web sites to
distribute adult material to minors and another that would require software
filters on computers in libraries that receive federal Internet subsidies."
The measures, which had been introduced as separate bills by Senator John
McCain (R-AZ) and Senator Dan Coats (R-IN), were added on voice votes to the
appropriations bill for the Commerce, Justice and State dept.s in a
"controversial but common tactic for pushing through legislation on
contentious issues." Civil liberties groups were upset with the action, but
not surprised. A similar filtering proposal has been added to a House
appropriations bill.

Title: Bulk E-Mail Become Politicians Tools
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/22politics.html
Author: Rebecca Fairly Raney
Issue: Political Campaigns
Description: A new campaign concept is becoming commonplace among
Net-literate political candidates and officeholders this year. "Mass email
lists -- once the exclusive domain of techno-activists -- have hit the
mainstream of politics." Campaigns across the nation this summer are using
these lists to contact reporters, stir up supporters and send updates to
contributors. "Mass emailing to a limited but extremely interested audience
makes everyone feel a part of the family," said Andy Brack, an Internet
political consultant and president of Brack Network Strategies in Charlston,
S.C. "If you don't do it, you're not using the medium properly...People get
addicted to good email like they get addicted to good chocolate," he said.
This trend shows more than a change in the way campaigns are run, it also
offers a chance to return to grass-roots campaigning. Kim Alexander,
president of the nonpartisan, nonprofit Calif. Voter Foundation, points out
that campaigns in Calif. have come to rely on television advertising, but
that inexpensive organization by email may change the current equation.
"Maybe we are seeing a return to a different style of campaigning that uses
technology to engage people instead of turning them off," she said. "The
public has a role again in these campaigns. I think that's incredibly
healthy for the process."

Title: Internet Companies Move to Safeguard Computer Users' Privacy
Source: Washington Post (A13)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/22/088l-072298-idx.html
Author: Robert O'Harrow
Issue: Privacy
Description: In response to yesterday's Federal Trade Commission
recommendation that Congress should pass privacy legislation if online
companies fail to implement self-regulation by the end of the year, the
Online Privacy Alliance, a coalition of Internet merchants, announced that
it would use an electronic stamp of approval to assure consumers of
information safety. Both the Council of Better Business Bureaus and a
nonprofit group called TRUSTe have developed privacy seal systems. Marc
Rotenburg of the Electronic Privacy Information Center questions the
effectiveness of the seal programs, "There's no assurance that the privacy
policy is any good." First, he argues, "You need a baseline standard."

** Education **

Title: Home Computer Study Leaves Questions
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/education/22education.html
Author: Pamela Mendels
Issue: Education
Description: Eight years ago, a group of researchers in New York City set
out to see if equipping low-income homes with computers that had online
access would influence the chance of academic success for poor, minority
sixth graders that were at risk for dropping out of school. A group of
children who fit the requirements received computers and modems. As these
children were finishing the eighth grade, they were showing modest but
noticeable gains in reading over a comparison group. Given these results,
the researchers decided to continue the project, known as Project TELL,
which stands for Telecommunications for Learning. Last year, as the test
group approached the end of high school, 46 percent of the students who had
remained in the project were able to graduate on time, in comparison to 41
percent of minority students overall in New York City. To the researchers,
who published their findings earlier this year and are issuing another
report for a UNESCO publication to be released this fall, the results
indicate that technology at home can help under-privileged children learn.
"Our work shows that to some extent, you can expand the school day by
putting that learning window in the home," said William Kornblum, principal
investigator of Project TELL. But the project raises another question: What
really helped these children? Was it the computers of the extra attention of
caring adults? Edward Miller, an education research and policy analyst
working on a book about schools and computers, notes that it is a common
occurrence in education studies for children that are being examined to show
an improvement simply because they are receiving special attention. Kornblum
does not dismiss the "spotlight effect," but he points out that those kids
that showed the most marked improvement in test scores where also those that
spent the most time on their computers. Kornblum also said that computers
alone are not necessarily solely responsible for the impressive high school
graduation rates. The participants, that had previously received no formal
outside help with academics, in addition to the benefits of being online,
received face-to-face tutoring and the promise of scholarships if they met
college entrance requirements. While the Project TELL study is definitely
notable as one of the few long-term looks at the effects computers can have
on kids when placed in the home. There were so many possible influences on
the student's performance that there was no way for researchers to examine
the effects of the computers alone on student achievement.

** Radio **

Title: FCC might legitimize radio 'pirates' it now punishes
Source: Chicago Tribune (Sec 1, p.1)
http://chicagotribune.com/textversion/article/0,1492,ART-12198,00.html
Author: Frank James
Issue: Radio
Description: The Federal Communications Commission is considering legalizing
low-power radio stations around the country. The relatively inexpensive
radio outlets could revive local programming while giving just about anyone
the chance to be a broadcaster. Opponents include the powerful lobbying arm
of the broadcast industry -- the National Association of Broadcasters. The
NAB, in official comments filed at the FCC, argues that the airwaves are
already too cluttered and the introduction of microradio could interfere with
plans for broadcasters to switch to digital systems.

** Arts **

Title: In Election Year House Authorizes Financing of Arts
Source: New York Times (A1,A14)
http://www.nytimes.com/yr/mo/day/news/washpol/congress-arts.html
Author: Katharine Q. Seelye
Issue: Arts
Description: Yesterday, the House overwhelmingly approved money for the
National Endowment for the Arts. The vote of 253-173 basically guarantees
that the arts agency, in one way or another, will receive $98 million, the
same amount it received this fiscal year. The Senate and President Clinton
also have indicated support for the approved amount. "The old debate over
the existence of the NEA finally has given way to a more thoughtful dialogue
about the appropriate level of federal arts funding in America," William
Ivey, the new chairman of the endowment, said in a statement.

Title: Funding for arts agency survives House vote
Source: Chicago Tribune (Sec 1, p.3)
http://chicagotribune.com/textversion/article/0,1492,SAV-9807220096,00.html
Author: Michael Kilian
Issue: Arts
Description: In a 253-172 vote, the House voted to approve $98 million in
funding for the National Endowment for the Arts despite a last minute fight
by conservatives. The funding victory may be a farewell tribute to the NEA's
main sponsor, Rep Sidney Yates (D-IL) of Chicago. Rep Yates, 88, is retiring
after this term.

** Telephone/Ownership **

Title: Puerto Rico Accepts GTE Group's Bid To Buy Control of Telephone Company
Source: Wall Street Journal (B7)
http://wsj.com/
Author: Stephanie N. Mehta
Issue: Telephone/Ownership
Description: "State officials in Puerto Rico yesterday accepted an enhanced
offer by a GTE Corp.-led group to acquire a controlling stake in the
government-owned telephone company amid protests over the privatizations
effort. In addition to its $444 million cash offer, GTE and its partner,
Popular Inc. a bank holding company, outlined a set of concessions aimed at
appeasing employees of Puerto Rico Telephone Co. Workers, who walked off the
job over a month ago in protest of the sale. "We certainly are more than
willing to understand the concerns of the union leaders and be responsive to
those concerns," said Michael T. Masin, GTE's vice chairman, in an interview
yesterday.

** Advertising **

Title: House GOP Plans Major Ad Campaign
Source: Washington Post (A5)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/22/097l-072298-idx.html
Author: Juliet Eilperin, John Schwartz, Helen Dewar
Issue: Advertising
Description: House Republican Leadership has disclosed plans to launch a $37
million media campaign in support of GOP congressional candidates. Party
leaders plan to raise up to $16 million in soft money for the "issue
advertisements" that will air in contested districts.

** Lifestyles/Internet Use **

Title: Hello Mudda, Hello Fadda...E-Mail Quickly, Yadda, Yadda
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Jane Costello
Issue: Lifestyles/Internet Use
Description: Summer camp sure isn't what it used to be, at least not at the
second annual CyberCamp, an indoor/outdoors experience funded by the U.S.
Department of Agriculture. The camp is coordinated by Trudy Dunham for the
University of Minnesota. This year, the camp is expecting more than 500
campers, between the ages of 8 and 12, to sign up for the two-week session
beginning on August 10. This summer's curriculum will focus on the
environment of lakes and streams. Daily activities include everything from
being responsible for a virtual fish "with a life span equivalent to the
camp session," to creating on-line arts and crafts or logging on for a hike
in the woods. While campers can sleep soundly in their own beds at the end
of the day, programmers continue to work on future CyberCamp offerings.
"We're working on food fight graphics right now," says Dunham. "Ideally,
we'd like to get a huge tomato to splash all over the screen."

**************************

Communications-related Headlines for 7/21/98

Telephony
Consumer Groups Ask FCC for Consumer-Oriented Section 271 Review
(TelecomAM)
Administration Denounces Bell Company 706 Petitions (TelecomAM)
Firms Told To Release 847 Data -- or Else (ChiTrib)
In Brazil, Sell-Off of Monopoly a Good Call (ChiTrib)

Internet
Group Proposes Voluntary Guidelines for Internet Privacy (NYT)
FTC To Suggest Privacy Guidelines (WSJ)
FTC to Back Warning Over Online Privacy (WP)
Silicon Valley Lobs Populist Ads in Encryption Battle (WSJ)

Television
Whose 1st Amendment Is It Anyway? (ChiTrib)

Employment
Help From Afar (WP)

** Telephony **

Title: Consumer Groups Ask FCC for Consumer-Oriented Section 271 Review
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Competition
Description: The American Association of Retired Persons, Competition Policy
Institute (CPI), Consumers Action Network of San Diego, Iowa Office of
Consumer Advocate, Maine Office of Public Advocate and the South Carolina
Department of Consumer Affairs filed a petition at the FCC yesterday asking
for a "consumer-oriented" definition of the public interest when the
Commission rules on Baby Bell applications to enter the in-region long
distance market. CPI Executive Director Debra Berlyn said the emphasis since
passage of the Telecommunications Act of 1996 has been on balancing the
interests of competing industry players. The petitioners are asking the FCC
to use a "realistic choice" definition of the public interest that looks at
whether consumers have a selection -- or reasonable choice -- of competitors
for local telephone service.

Title: Administration Denounces Bell Company 706 Petitions
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: In a letter to FCC Chairman William Kennard last week, National
Telecom & Information Administration (NTIA) Administrator Larry Irving asked
the Commission to deny Baby Bell petitions that ask that they be allowed to
block competitors from sharing space on their high-speed networks. The Bells
should make local loops and collocation space available before the FCC
relaxes any rules. According to the 1996 Telecom Act, the FCC must rule by
August 8 on how to promote the growth of advanced data networks. [See
Assist. Sec Irving's letter -- posted to this listserv yesterday -- at
http://www.ntia.doc.gov/ntiahome/fccfilings/sec706.htm]

Title: Firms Told To Release 847 Data -- or Else
Source: Chicago Tribune (Sec1,p1)
http://chicagotribune.com/textversion/article/0,1492,ART-12151,00.html
Author: Cornelia Grumman
Issue: Telephone Regulation
Description: The Illinois Commerce Commission (ICC) had ordered telephone
and paging companies doing business in Chicago's north and northwest suburbs
to turn in lists of their unused numbers by last week. Fifteen of 34
companies have missed the deadline and failed to share the information with
the ICC and the Citizens Utility Board (CUB) which will also analyze the
numbers. The ICC is threatening to revoke the operating licenses of
companies that do not comply by the end of this week. Big carriers like
Ameritech are claiming that the area needs a new overlay area code. Consumer
groups like CUB believe that only half of the numbers in the present 847
code are being used. We have an industry crying wolf here," said CUB's
associate director Seamus Glynn. "There are, in fact, more (blocks of 10,000
numbers) being returned now than there are new carriers entering the market
who need them. When the commission looks at these numbers and sees there are
100 blocks there, the math is going to add up to a situation in which
exhaust is not imminent."

Title: In Brazil, Sell-Off of Monopoly a Good Call
Source: Chicago Tribune (Sec3,p1)
http://chicagotribune.com/textversion/article/0,1492,SAV-9807210044,00.html
Author: Laurie Goering
Issue: International/Ownership
Description: Telebras, Brazil's state-owned telephone network, will be sold
off this month in Latin America's largest-ever privatization. Only 1 in 10
people have a phone in Brazil while nearly 15 million people wait for
installation of a phone. In a process similar to the 1984 break up of AT&T,
Brazil plans to split the network into 12 holdings -- 3 regional local
service providers, 8 regional cellular phone providers, and one long
distance company. The sale will raise at least $11.7 billion and as much as
$30 billion, analysts say.

** Internet **

Title: Group Proposes Voluntary Guidelines for Internet Privacy
Source: New York Times (D4)
http://www.nytimes.com/library/tech/98/07/cyber/articles/21privacy.html
Author: Jeri Clausing
Issue: Privacy
Description: The Online Privacy Alliance, an industry coalition, proposed a
voluntary enforcement program on Monday to certify Web sites that comply
with privacy guidelines. Under the offered plan, Web sites that comply with
the group's guidelines could display a seal of approval. While some privacy
advocates said that the measure fell far short of what is needed, Ira C.
Magaziner, President Clinton's top adviser on electronic commerce, said: "I
think the enforcement mechanisms that they are putting in place are what we
have been calling for. Now what we need to do is monitor it to see that it
really happens." The proposal will be publicly unveiled today at a
Congressional hearing on online privacy.

Title: FTC To Suggest Privacy Guidelines
Source: Wall Street Journal (B17)
http://wsj.com/
Author: John Simons
Issue: Privacy
Description: The Federal Trade Commission (FTC) is expected today to offer
Congress guidelines for legislation governing Internet privacy. FTC Chairman
Robert Pitofsky will recommend that Congress should consider legislation
that would protect the privacy of consumers visiting any U.S.-based
commercial Web sites. Chairman Pitofsky will suggest guidelines to cover
four basic areas. They would "require Web sites to alert consumers about the
information they collect and use, and give consumers choices on how their
information is used - if at all. Web sites also would be required to offer
consumers "reasonable access" to the data and a chance to correct
inaccuracies; and to protect the data's security and integrity." In
addition, the commission will ask that sites obtain parental consent before
collecting information on children ages 12 and younger. Chairman Pitofsky
said that unless the industry acts by year's end, "additional governmental
authority...would be appropriate and necessary."

Title: FTC to Back Warning Over Online Privacy
Source: Washington Post (C2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/21/095l-072198-idx.html
Author: David Segal
Issue: Privacy
Description: Online merchants have been given one last chance to prove that
they themselves can protect consumers' privacy online. Today, the Federal
Trade Commission will advise lawmakers to pass online privacy rules if the
industry fails to engage in effective self-regulation. Internet related
companies are advocating a privacy "seal-of-approval" system instead of
government regulation.

Title: Silicon Valley Lobs Populist Ads in Encryption Battle
Source: Wall Street Journal (A16)
http://wsj.com/
Author: John Simons
Issue: Encryption
Description: Several TV ads, created to aid some of the nation's largest
high-tech companies, will begin tomorrow and continue into the fall. The
30-second spots' mission is to enlist the average citizen in the technology
industry's fight against the federal government's restrictions on computer
encryption. The ads, sponsored by a coalition of 90 companies, such as Intel
Corp., Microsoft Corp and Sun Microsystems Inc., that have joined together
as Americans for Computer Privacy (ACP), represent a major tactical shift in
the computer industry's battle. The grassroots effort will feature a couple
from the baby boomer generation discussing encryption in their living room.
After discussing how encryption can lock away private information, the woman
points out that the government wants "access to any information that's
protected by encryption." She then concludes, "Should we trust Washington
bureaucrats with the key to our private lives?" The advertisements will be
accompanied by print ads and a Web campaign.

** Television **

Title: Whose 1st Amendment Is It Anyway?
Source: Chicago Tribune (Sec1,p11)
http://chicagotribune.com/textversion/article/0,1492,SAV-9807210264,00.html
Author: Jerry Landay, University of Illinois
Issue: Television
Description: The "fairness doctrine" was abolished in 1987 because the
"Reaganized FCC" argued that the requirement to air public voices on matters
of public importance violated the free speech rights of broadcasters. "Whose
1st Amendment is it anyhow? This seminal right, conceived by James Madison
as the core freedom of democratic citizens, has been turned into legal cover
for liars. It was written to protect individuals from the gag of tyrannical
government. The Founders could not anticipate that content of the primary
"speaker's platform" would someday be altered to further--without
challenge--the interests of aggregations of assets called corporations." A
1976 court case afforded commercial speech the same rights as that of the
press of individuals. Professor Landay argues that courts should re-examine
this decision and base rulings on other decisions that limit advertising and
other forms of commercial speech. "Beware of those conservative warnings
against "big government" with its "nanny-knows-best thinking," as a
columnist wrote on these pages. We customarily accept government oversight
of nuclear power, airline and railroad safety, and air quality. Why is
pro-public FCC regulation of corporate dominion over the public mind more to
be feared than self-serving editorial edicts by Fox's Murdoch, TCI's Malone,
GE/NBC's Welch or Disney's Eisner? They are not accountable to the
democratic process. The FCC is. And so, indirectly, is the federal bench."

** Employment **

Title: Help From Afar
Source: Washington Post (D4)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/21/051l-072198-idx.html
Author: Susanne Lazanov
Issue: Employment
Description: Stacy Brice works in the new and growing field of virtual
assistants. She makes arrangements, writes, and does research for an
employer whom she has never met. The client base for most personal
assistants includes home-based business owners and other professionals who
work from the home. Working from home allows for more flexibility and
family time for both the assisted and assistant. According to one virtual
assistant, Edwina Adams, "Virtual assisting is a wonderful opportunity for
those individuals who want to work at home and enjoy working alone."

**************************

Communications-related Headlines for 7/20/98

Universal Service
Furchtgott-Roth Criticizes Emphasis on E-Rate (TelecomAM)
FCC Asks Joint Board for Universal Service Recommendations
(TelecomAM)
Universal Service Support for Non-Rural Carriers that
Serve High Cost Areas (FCC)
Some Guiding Principles on the Deployment of
Advanced Telecommunications Capabilities (NTIA)

Infrastructure
Copper may remain king in communications (ChicagoTrib)
FCC to Ease Rules On Local Phone Firms For Data Networks (WSJ)
WorldCom to Announce Opening Today of Its Pan-European
Telecom Network (WSJ)

Electronic Commerce
House Reaches Compromise on Digital Copyright Law (NYT)
Congress Is Challenging State Internet Fees (NYT)
Taxdodge.com (ChiTrib)
The New Synergy (NYT)
Testing to Begin on System to Fight 'Spam' (NYT)

Television & Broadcasting
Talks With USA Show NBC's Expansion Goal (NYT)
Fast Track To Anxiety In TV News (NYT)
FCC: Committed to Diversity (WP)
PAX Net Apologizes for Ad (WP)
Paxson Pitches Diversity Plan (B&C)

Advertising
Madison Ave. Is a Hall of Mirrors (NYT)
Soap and Diaper makers Pitch to masses of Web Women (WSJ)

Antitrust
Debate Grows Over the Role An Operating System Plays (NYT)

Satellites
Bringing Intelsat Back to Earth (NYT)

Books
'Ulysses' at Top As panel Picks 100 Best Novels (NYT)

** Universal Service **

Title: Furchtgott-Roth Criticizes Emphasis on E-Rate
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The Telecom Act "primarily wanted action for rural America, and
rural America was ignored," FCC Commissioner Harold Furchtgott-Roth told the
International Telecard Foundation. He acknowledged the importance of
education, but said that the "rule of law is more important" and that no
matter how worthy a cause is, "government agencies should follow the laws as
written." The Telecom Act was designed to offer support for services, not
computer equipment like routers and computers, Commissioner Harold
Furchtgott-Roth. Misdirection of the funds could create a billion-dollar
market for computer equipment.

Title: FCC Asks Joint Board for Universal Service Recommendations
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: The Federal Communications Commission has asked the
Federal-State Joint Board on Universal Service for recommendations on
universal service support for nonrural carriers serving high-cost regions.
The Commission said that during the next year, it will not change its
methods for determining universal service support levels: "Existing levels
of high cost support will be maintained, and consumers in high cost areas
will continue to enjoy access to affordable telephone service." The issues
referred to by the Joint Board include: 1) How to determine support for high
cost support to non-rural carriers; 2) the extent to which federal support
should be applied to the
intrastate jurisdiction; and 3) how providers should recover contributions
through rates, surcharges and other means. The FCC has asked the Joint Board
for recommendations by November 23. [See FCC item below]

Title: Universal Service Support for Non-Rural Carriers that
Serve High Cost Areas
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1998/nrcc8048.html
Issue: Universal Service
Description: The FCC has asked the Federal-State Joint Board on Universal
Service for recommendations related to the amount of universal service
support that non-rural telephone companies should receive for serving high
cost areas. This Commission noted that further coordination with state
regulators should provide valuable input that will enhance the development
of universal service and competition policies.

Title: Some Guiding Principles on the Deployment of
Advanced Telecommunications Capabilities
Source: NTIA
http://www.ntia.doc.gov/ntiahome/fccfilings/sec706.htm
Author: Larry Irving
Issue: Universal Service & Access
Description: NTIA, on behalf of the Administration, sent a letter to the FCC
offering some guiding principles on a soon to be initiated inquiry, mandated
by section 706 of the Telecommunications Act of 1996 (1996 Act), into the
deployment of advanced telecommunications capabilities. [See post of entire
letter later today]

** Infrastructure **

Title: Copper may remain king in communications
Source: Chicago Tribune
http://chicagotribune.com/textversion/article/0,1492,SAV-9807200019,00.html
Author: Jon Healey
Issue: Infrastructure
Description: In the mid-90's telco's like PacTel said they would start
building the networks of the future -- fiber optic networks that would
replace existing lines. Now PacTel and others are saying the networks of the
future have been built, but they are not fiber -- they are the existing
copper wires our phones use today. With advances in technology, the industry
now believes high-speed communications and video can be sent offer
traditional phone lines. Some industry analysts think that copper can't keep
up with all the information services flowing to the home.

Title: FCC to Ease Rules On Local Phone Firms For Data Networks
Source: Wall Street Journal (A14)
http://wsj.com/
Author: WSJ Staff Reporter
Issue: Infrastructure
Description: The Federal Communications Committee is planning to ease some
competitive requirements on the nation's heavily regulated phone carriers in
an effort to encourage the development of high-speed Internet networks.
Under the new proposal, to be approved probably next month, "new high-speed
data networks won't be subject to those requirements as long as the local
carriers create separate affiliates to provide the service, FCC officials
said." The commission hopes that by requiring these networks to be created
independently, a marketplace will be established where competitors can get
off on equal footing.

Title: WorldCom to Announce Opening Today of Its Pan-European Telecom Network
Source: Wall Street Journal (A10)
http://wsj.com/
Author: Gautam Naik
Issue: Infrastructure
Description: WorldCom Inc. is expected to announce today that its nearly
2,000 mile pan-European telecommunications network, linking London,
Amsterdam, Brussels, Paris and Frankfort, is open for business. "Now a
business customer can have a video-phone on the desk of every executive in
Chicago and Frankfort," says Liam Strong, chief executive officer of
WorldCom's international unit. "We're breaking the mold." WorldCom plans to
stretch its fiber-optic system, dubbed Ulysses, to Milan Zurich and some
regions of France outside Paris.

** Electronic Commerce **

Title: House Reaches Compromise on Digital Copyright Law
Source: New York Times (CyberTimes-7/18)
http://www.nytimes.com/library/tech/98/07/cyber/articles/18copyright.html
Author: Jeri Clausing
Issue: Copyright
Description: On Friday, the House Commerce Committee passed a bill that
would establish a review process to ensure that new digital prohibitions
don't trample on the "fair use' doctrines of traditional copyright law. Over
the past month the Commerce Committee has struggled to craft a "fair use"
compromise between those interests of movie and record producers and
software makers, and those of schools and libraries, "who feared they could
lose the right to do things as simple as making copies of electronic works."
Early on Friday morning, the two sides struck a deal and the Commerce
Committee, on a 41-to-0 vote, sent that version to the House floor. However,
before the House can vote on the bill, lawmakers must reconcile it with the
earlier version approved by the Judiciary Committee.

Title: Congress Is Challenging State Internet Fees
Source: New York Times (C2)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/20tax.html
Author: David Cay Johnston
Issue: Legislation
Description: The Internet Tax Freedom Act, passed by the House last month
and moving through the Senate, would ban taxes on Internet access in all
states but eight which already collect fees on the service. The eight
states, however, would have to re-enact their legislation after passage of
the Internet Act.Frank Shafroth, policy director for the National League of
Cities, said: "All eight states have Republican governors, and for seven
it's election time this fall. And there is such incredible terror these days
when anyone accuses you of wanting to raise taxes that at most two of these
states will have the courage to re-enact their existing tax law." "That's
not a grandfather clause; that's a dead man's clause," said Eugene Gavin,
the commissioner of the Department of Revenue Services in Connecticut, one
of the eight states. The content of the bill is being heavily influenced by
lobbying by America Online, the nation's largest Internet service provider,
Mr. Shafroth says.

Title: Taxdodge.com
Source: Chicago Tribune (sec 1, p.13)
http://chicago.tribune.com
Author: John McCarron
Issue: Electronic Commerce
Description: In Commentary piece McCarron writes that the press is missing
the story of electronic commerce. If we're at the dawn of an age in which
people use computers to shop "who's going to pay for state and local taxes."
Sales taxes account for 1/3 of the tax revenues in Illinois and 1/5 of
Chicago's. Big savings could draw more and more people to online shopping
and, if it does, what will that mean for property taxes which are supported
mainly by commercial retailers? "In a better world, a national protocol
would be set up so people would pay sales taxes not according to their
method of purchase, but where they live, which is to say, at the level their
elected representatives have determined."

Title: The New Synergy
Source: New York Times (C3)
http://www.nytimes.com/library/tech/yr/mo/biztech/digicom/20digicom.html
Author: Denise Caruso
Issue: Electronic Commerce
Description: "Synergy" is an 80's word making a strong comeback in the
digital 90's. "Boiled down, what the term describes is parking old content
in a new garage: If you liked the movie, then you'll love the TV show, the
book, the magazine piece, the video game, the soundtrack, the action
figures, the desk accessories and -- au courant! -- the Web site." The New
Synergy is about creating cross-over hits -- like a computer game spawning a
TV show and book star (i.e. Carmen Sandiego) or a video game leading to a
book and a movie and 2,000 Web sites (Lara Croft, Tomb Raider).

Title: Testing to Begin on System to Fight 'Spam'
Source: New York Times (C8)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/20spam.html
Author: John Markoff
Issue: Internet/Email
Description: Bright Light Technologies www.brightlight.com will release a
test version of a system aimed at combating unsolicited, commercial email --
known affectionately as Spam. On some networks, Spam makes up more than 50%
of all electronic mail. Special decoy email accounts will collect spam and
copies of the messages will be blocked by a "spam wall" installed on mail
servers.

** Television & Broadcasting **

Title: Talks With USA Show NBC's Expansion Goal
Source: New York Times (C7)
http://www.nytimes.com/yr/mo/day/news/financial/media-talk.html
Author: Bill Carter
Issue: Television Economics
Description: NBC's parent, General Electric, may want out of the volatile
television network business. Reports that GE has been in talks with cable
channel USA Networks has reignited speculation. Warren Littlefield, the
president of NBC Entertainment said that while the talks with USA did not
result in a deal "something is going to happen....whether that is a spinoff
or a joint venture or a merger of some kind, it's clear that we're going to
try to do something in the future with some other entity." The process is
the result of a goal articulated by NBC's president Robert Wright: finding
an entertainment cable channel that could provide a secondary revenue source
for programming owned by the network.

Title: Fast Track To Anxiety In TV News
Source: New York Times (C1)
http://www.nytimes.com/yr/mo/day/news/financial/tv-producers-media.html
Author: Doreen Carvajal
Issue: Journalism
Description: The CNN/Vietnam nerve gas story has rattled television news
producers who argue that experienced correspondents preside over stories
like tough editors. The producers of the CNN story were dismissed while
veteran correspondent Peter Arnett maintained that he was simply a "face"
with minimal involvement. "Producers are the journalists who track down
impossible facts with the cunning of hunters -- booking the camera crew,
searching for sources, finding the location, writing the script, editing the
material -- and all for salaries that are usually 10 times less than what
correspondents make," Carvajal reports

Title: FCC: Committed to Diversity
Source: Washington Post (A16)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/20/005l-072098-idx.h...
Author: William E. Kennard (Chairman, Federal Communications Commission)
Issue: Minorities/Employment
Description: Chairman Kennard responds to a recent letter concerning the
D.C. Circuit Court of Appeals decision in which FCC's equal opportunity
employment recruiting policy to be unconstitutional. He argues that minority
employment in broadcasting has almost doubled since the 1971 implementation
of the minority outreach and recruitment policies recently overturned by the
court. "This is not about 'racial tastes,'" suggests Kennard, "it is about
inclusion, opportunity and merit." He adds, "In a nation whose strength is
the diversity of its people, broadcasting's viability depends, in part, on
its connection to all Americans."

Title: PAX Net Apologizes for Ad
Source: Washington Post (C7)
http://www.washingtonpost.com/
Issue: Advertising
Description: A new television service, PAX Net, that plans to offer only
non-offensive programs has already offended some people with its first print
ads. PAX Net's president Jeff Sagansky has vehemently apologized for what
many perceived homophobic wording that accused "so-called creative people
using what was once the family hour to peddle every kind of alternative
language and lifestyle to our kids."

Title: Paxson Pitches Diversity Plan
Source: Broadcasting&Cable (p6)
http://www.broadcastingcable.com/
Author: Chris McConnell and Paige Albiniak
Issue: Diversity
Description: Last week, FCC Chairman William Kennard received at least one
suggestion from the broadcast industry on how to promote ownership
diversity. The suggestion came from broadcaster Bud Paxson who asked
commissioners for "some ownership relief in exchange for helping both
minorities and nonminorities to build new stations from unused construction
permits." Paxson's plan calls for allowing financial backers, such as his
company, to own up to 33 percent of the new broadcasters without having that
interest count toward national ownership limits. It also proposes allowing
the new entrant's station to overlap signals with a partner's station,
provided they are in different markets. The plan calls for deals among
programmers, entrants and financiers to be stuck by Dec. 1 and suggests
requiring new stations to be on the air within 12 months.

** Advertising **

Title: Madison Ave. Is a Hall of Mirrors
Source: New York Times (C1)
http://www.nytimes.com/yr/mo/day/news/financial/recycled-ad-column.html
Author: Stuart Elliott
Issue: Advertising
Description: "Advertising is often described as holding a mirror to society.
Now more than ever, the mirror is reflecting back images of advertising,"
Stuart begins. Hoping that self-deprecation softens sales pitches,
advertising about advertising has made a big comeback in the 90's. "The idea
is to try to create a bond between the advertiser and the audience that
declares 'We're all in this together,' " said Larry Adelman, a critic of
consumer culture who is co-director of California Newsreel, a documentary
center in San Francisco. "But we keep buying. It's a hip, ironic way to
co-opt a growing public backlash against advertising's ubiquity and undercut
any impulse to think critically about it."

Title: Soap and Diaper makers Pitch to masses of Web Women
Source: Wall Street Journal (B1,B2)
http://wsj.com/
Author: Vanessa O'Connell
Issue: Online Advertising
Description: As more and more women log onto the Web, consumer-marketing
giants are hot on their heels. For example, Unilever, a firm whose brands
included Close-Up toothpaste, Lipton tea and Ragu sauce, recently struck the
largest online advertising deal ever, where it has agreed to spend at least
$50 million over the next three years promoting its products on America
Online and Microsoft's collection of sites. Also, rival Proctor & Gamble has
increased its presence on the Web by doubling to 10 the number of brands it
promotes on the Internet and spending $3 million in the second quarter on
cyberspace advertising. Ventures like these are consumer-products
manufacturers' first real efforts to sell directly to consumers on a mass
scale and, in particular, the 22 million women who now surf the World Wide Web.
Over the past two years, Web traffic by women has more than doubled and
women now account for more than 43 percent of the online population,
according to Forrester Research. "Any new medium that can help us deepen our
bonds with families and offer them new benefits is, by definition, of
tremendous interest to us," observed Denis F. Beausejour, P&G's vice
president for world-wide advertising, in a recent speech. Katherine
Borsecnik, AOL's vice president, network programming points out that "Women
have an enormous amount of purchasing power and influence, and clearly our
advertisers are focused on that."

** Antitrust **

Title: Debate Grows Over the Role An Operating System Plays
Source: New York Times (C1)
http://www.nytimes.com/library/tech/98/07/biztech/articles/20microsoft.html
Author: Andrew Pollack
Issue: Antitrust
Description: Technology may be advancing too quick for anyone to predict the
future of operating systems. But "[t]he nature of the operating system, the
master program that breathes life into computer hardware, is at the heart of
the Justice Department's lawsuit accusing Microsoft Corp. of antitrust
violations," Pollack writes. Last week, Sun Microsystems announced a new
operating system called Jini which employs distributed computing to control
computer, its peripherals and other gadgets as a community of devices all
working together as a single virtual machine. The wheels of justice may be
trying to operate on a beast that evolves into a new species on the
operating table.

** Satellites **

Title: Bringing Intelsat Back to Earth
Source: Washington Post (F5, F6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/20/019l-072098-idx.html
Author: Mike Mills
Issue: Satellites
Description: Conny Kulluman, recently elected director-general of Intelsat,
is eagerly planning for the privatization of the thirty-four year old global
satellite consortium. His vision includes Intelsate's transformation into a
private, publicly traded satellite company with a separate treaty
organization that would facilitate the availability of satellite service to
underdeveloped countries. While unwilling to disclose exact plans for full
privatization, Kulhman says he has goals for Intelsate's demise by 2001.

** Books **

Title: 'Ulysses' at Top As panel Picks 100 Best Novels
Source: New York Times (B1)
http://www.nytimes.com/library/books/072098best-novels.html
Author: Paul Lewis
Issue: Publishing
Description: Like Letterman's Top 10? Well, here's a list of the Top 100
books written in English this century. Top five are: 1) "Ulysses," James
Joyce, 2) "The Great Gatsby," F. Scott Fitzgerald 3) "A Portrait of the
Artist as a Young Man," James Joyce 4) "Lolita," Vladimir Nabokovan 5)
"Brave New World," Aldous Huxley. List was picked by the editorial board of
Modern Library, a division of Random House. Betsy, Rachel and I will be
comparing notes on which books 1) we have read, 2) we were supposed to read
but didn't and wrote papers on anyway and 3) (horror of horrors) we only
read the Cliff Notes version.
*********

Communications-related Headlines for 7/17/98

Universal Service
Plan to Wire Schools is Under Fire (CyberTimes)
Administration of Federal Universal Service Support (FCC)
SLC Will Make GAO-Recommended Changes in E-Rate Program
(TelecomAM)
Letter from Chairman Kennard to the Schools
and Libraries Corporation (FCC)

Internet
The F.C.C. May Act to Aid Home Internet Access (NYT)
Man Collects $200 From Unwanted Spam (CyberTimes)

Telephony
FTC Suit Accuses 4 Companies Of 'Cramming' Phone Customers (WP)
Calls for Help on Cell Phones' Iffy Access to 911 (WP)

Television
GE's NBC Unit is Seeking to Expand In Cable as Broadcast
Economics Soften (WSJ)

Privacy
FBI Seeks Access to Mobile Phone Locations (NYT)
U.S. Data Code Is Unscrambled In 56 Hours (NYT)
Is Software Like a Can Opener or a Recipe (CyberTimes)

Philanthropy
New Money and Museums (WP)

** Universal Service **

Title: Plan to Wire Schools is Under Fire
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/17erate.html
Author: Jeri Clausing
Issue: E-rate
Description: Schools and libraries will not receive federally subsidized
Internet hookups until at least this fall because the subsidy program still
lacks crucial safeguards to ensure money goes only to eligible applicants,
Ira Fishman, CEO of the Schools and Libraries Corp., told Congress on Thursday.
Mr. Fishman said the corporation is working to address the problems raised
by a review
released yesterday by the General Accounting Office (GAO). The report by the
GAO, Congress's investigative arm, was requested by Senator John McCain
(R-AZ), Chairman of the Commerce Committee, who has been a vocal critic
about the subsidy program, also called the e-rate. The report said that the
corporation has taken longer than expected to process the 30,000
applications it received from schools and libraries around the country and
it lacks adequate compliance checks and internal controls. "As we debate
this issue, it is very important to keep several things in mind. First the
e-rate program is fundamentally strong and sound," said Senator Jay
Rockefeller (D-WV). "While concerns have been aired, not one issue has been
raised that has not or cannot be fixed."

Title: Administration of Federal Universal Service Support
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da981336.pdf
Issue: Universal Service
Description: "In connection with supplemental appropriations legislation
enacted on May 1, 1998, Congress requested that the Commission propose a
single entity to administer the support mechanisms for schools and libraries
and rural health care providers. In its Report to Congress, the Commission
proposed to merge the Schools and Libraries Corporation (SLC) and the Rural
Health Care Corporation (RHCC) into the Universal Service Administrative
Company (USAC) as the single entity responsible for administering the
universal service support mechanisms for schools, libraries and rural health
care providers by January 1, 1999. The Commission indicated that USAC, SLC,
and RHCC would be required jointly to prepare and submit a plan of
reorganization, for approval by the Commission. On July 1, 1998, SLC, RHCC
and USAC filed a Report and Proposed Plan of Reorganization (Plan) for
revising the administrative structure of the federal universal service
support mechanisms. RHCC filed a Separate Statement of the Rural Health
Care Corporation and Request for Three Changes in the Plan (RHCC Statement),
proposing certain modifications to the Plan. An executive summary of the
Plan is attached hereto. In this Public Notice, we seek comment from
interested parties on issues raised by the Plan and the RHCC Statement. We
also seek comment on other issues regarding the administration of the
federal universal service support mechanisms, including processes for
Commission review of actions by USAC, RHCC and SLC, divestiture of USAC from
the National Exchange Carrier Association (NECA), and compensation
limitations." Comments due August 5, 1998. Download the Notice at
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da981336.wp.

Title: SLC Will Make GAO-Recommended Changes in E-Rate Program
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service
Description: At a Senate Commerce Committee meeting, the General Accounting
Office (GAO) made recommendation about how the Schools and Libraries Corp
(SLC) should improve the process for approving applications: 1) the SLC
should not send "funding commitment letters" before finishing a two-part
fraud-and-waste-control program that includes development of internal
controls and completion of a report by an outside auditor reviewing them'
and 2) the SLC should review a random sample of applications to determine
whether program integrity systems are working well enough to detect
ineligible applications. SLC CEO Ira Fishman told the Committee that FCC
Chairman Bill Kennard had already ordered the SLC to adopt the GAO
recommendations [see letter below]. The program will begin funding discounts
for schools and libraries this fall.

Title: Letter from Chairman Kennard to the Schools and Libraries Corporation
Source: FCC
http://www.fcc.gov/Speeches/Kennard/Statements/stwek855.html
Issue: Universal Service
Description: Letter from Chairman Kennard to the Schools and Libraries
Corporation requesting that they complete certain actions before they issue
any funding commitment letters to applicants for the schools and libraries
universal service support mechanism.

** Internet **

Title: The F.C.C. May Act to Aid Home Internet Access
Source: New York Times (C1,C3)
http://www.nytimes.com/yr/mo/day/news/financial/fcc-bells.html
Author: Seth Schiesel
Issue: Broadband
Description: The Federal Communications Committee is preparing to recommend
as early as today that the big local telephone companies be allowed to build
data systems without having to resell their use to competitors, officials
said Thursday. If the plan is adopted, it would represent the FCC's biggest
move in favor of the local Bell companies since the telecommunications laws
were overhauled in 1996. The plan, supported by FCC Chairman William
Kennard, is sure to draw opposition from the nation's large long distance
carriers and new local phone companies. Although the Commission could issue
a proposal next month, the battle over the plan is likely to "spill over"
into next year before any final rules are adopted. "Our goal is to turn what
is today a trickle into a gushing pipeline of entertainment and information
into the home," Chairman Kennard said in an interview yesterday. Referring
to the
copper telephone wires that reach into almost every home across the U.S.,
Chairman Kennard added: "The incumbents, they have the copper infrastructure. It
would be a shame not to create incentives for them to use it for broadband
services."

Title: Man Collects $200 From Unwanted Spam
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/articles/17spam.html
Author: Matt Richtel
Issue: Email
Description: Bruce Miller of Seattle collected $200 this week from a bulk
emailer under Washington State's month-old anti-spam law. Mr. Miller, a
freelance writer and consultant, may be the first consumer to
ever benefit from any state or federal anti-spam legislation. The payment
comes as legislators in states around the U.S. and Congress are considering
laws to restrict the use of unsolicited commercial email, and in some cases
penalize the senders. To date, Washington and Nevada are the only two states
that have adopted laws that specifically address spam.

** Telephony **

Title: FTC Suit Accuses 4 Companies Of 'Cramming' Phone Customers
Source: Washington Post (F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/17/076l-071798-idx.html
Author: David Segal
Issue: Telephony
Description: Thursday July 16, the Federal Trade Commission announced that
it was filling a suit against companies that have reportedly engaged in the
practice of 'cramming' unauthorized charges onto consumers' monthly phone
bills. Teresa M. Schwartz of the FTC's Bureau of Consumer protection said,
"The problem of cramming represents the latest in a growing array of
scams that exploit new telephone technologies and the deregulated telephone
billing system." She adds that "Consumers need to be especially wary of
charges from companies they've never heard of, and if uncertain, they can
call the local phone company." [Relax, let your local telephone monopoly
take care of you]

Title: Calls for Help on Cell Phones' Iffy Access to 911
Source: Washington Post (F1,F2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/17/094l-071798-idx.h...
Author: Cindy Skrzycki
Issue: Wireless
Description: The possibility that some cellular phone users won't be able to
reach 911 in a case of emergency has come to the attention of the FCC. The
inability to complete a call is a result of holes that exist in cellular
carrier's service area. Because of this risk, the FCC is considering to mandate
"strongest-signal" technology which would allow phones to seek the
strongest signal in an area to complete a call. Industry groups oppose this
proposals because it would allow calls to be completed on competitors
signals if they are stronger. Another concern is that a "strongest-signal"
mandate could interfered with the implementing of locator technology that
enables emergency dispatchers to locate callers. According to a group
filling with the FCC, "We can't help them if we can't find them".

** Television **

Title: GE's NBC Unit is Seeking to Expand In Cable as Broadcast Economics
Soften
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Kyle Pope
Issue: Television
Description: General Electric Co.'s NBC is increasing its efforts to expand
its cable holdings "as the economics of the broadcast-television business
continue to sour," according to people at the network. Though no deals are
ready to take place, people close to the network said that NBC's search for
a cable network has recently intensified. "We've made no secret of the fact
that we are covetous of some kind of entertainment channel," said a senior
NBC official. "NBC is looking to do things differently, to cut a new path."

** Privacy **

Title: FBI Seeks Access to Mobile Phone Locations
Source: New York Times (A10)
http://www.nytimes.com/library/tech/98/07/biztech/articles/17tap.html
Author: John Markoff
Issue: Privacy
Description: Last week, FBI Director Louis J. Freeh asked members of the
Senate Appropriations Committee to append to the Justice Dept.
appropriations bill language that would require telephone companies to
provide police agencies with the exact location of cellular phone users,
sometimes without a court order. After learning of Director Freeh's meeting with
Committee members, the telecommunications industry and civil liberties
groups began "marshaling" opposition. "Privacy advocates say the proposal is
a dangerous and unconstitutional invasion of privacy, and the
telecommunications industry predicts that implementing such a law would cost
billions of dollars," Markoff reports. Attorney General Janet Reno will meet
with FCC
Chairman William Kennard today to make the FBI's case that such legislation
is needed in order for the agency to stay current with an evolving
technology that enables criminals to used mobile phones to avoid detection.

Title: U.S. Data Code Is Unscrambled In 56 Hours
Source: New York Times (C1,C3)
http://www.nytimes.com/library/tech/98/07/biztech/articles/17encrypt.html
Author: John Markoff
Issue: Encryption
Description: Researchers using a homemade supercomputer cracked the U.S.
government's standard data-scrambling code in record time during a contest
sponsored by RSA Data Security Inc., a Silicon Valley computer-security
software company. The breakthrough is being hailed by critics of the U.S.
export policy for encryption technology as proof that a "well-heeled" group
of terrorists or other criminals could easily break the code used by
corporate and financial institutions as well as government agencies. The
U.S. government has long sought to keep data-scrambling technology out of
criminal hands by setting limits on the strength of such software that can
be exported. But critics argue that not only is more powerful
data-scrambling software already available from foreign companies, but the
government's approved version is too weak to really protect legitimate
business users. "This is more evidence that the government's crypto policy
has been overtaken by technology," said Marc Rotenberg, director of the
Electronic Privacy Information Center, a privacy-rights group in Washington.
"It's about time to end the limits on strong encryption techniques."

Title: Is Software Like a Can Opener or a Recipe
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/07/cyber/cyberlaw/17law.html
Author: Carl S. Kaplan
Issue: Encryption
Description: On July 2 the U.S. District Court for the
Northern District of Ohio ruled that encryption software is essentially a
gadget and not protected under the First Amendment. While recipes are
considered speech and are protected by the First Amendment, gadgets are not.
Attorneys for Peter D. Junger, a law professor who challenged the
government's restriction of dissemination of his encryption software,
argued that the computer programs where a kind of language, and all language
receives First Amendment protection. Judge James S. Gwin disagreed with this
assertion in concluding that the software was "inherently functional" and
not "expressive," and is therefore undeserving of First Amendment protection.

** Philanthropy **

Title: New Money and Museums
Source: Washington Post (Editorial, A 20)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/17/044l-071798-idx.h...
Author: Washington Post Editorial Staff
Issue: Philanthropy
Description: Designer Ralph Lauren's $13 million donation to the Smithsonian
for the restoration of an 184-year-old American flag is indicative of the
growing trend in corporate and private philanthropy. A survey released by
the Chronicle of Philanthropy this week found that corporate giving has
risen over 20 percent in the last three years. This new private giving,
which has resulted in "logo-plastered exhibits", comes on the heels of large
cutbacks in government spending for the arts and humanities. While private
money has become essential for many institutions, the authors wonder if
"the new public-private-corporate balance (will) come out to something
approximating the overall need".
*********
...and we are outta here. Have a great weekend; we'll be back Monday.

Communications-related Headlines for 7/16/98

Legislation Update
Cities fight Web sales tax break (ChiTrib)
Senators Praise E-Rate Internet Filtering Bill (TelecomAM)
House Appropriations Committee Does Not Change
FCC Funding (TelecomAM)

Mergers
Justice Clears MCI Acquisition (WP)
Justice Department Clears MCI-WorldCom Merger
After Internet Sale (TelecomAM)
Illinois Group Opposes Whitacre's Arguments for
Ameritech-SBC (TelecomAM)

International
U.S., Mexico closing In on a Telephone Deal (WSJ)

InfoTech
Integrated system separates Sprint from
competitors (ChiTrib)
Sprint Is Laying Out Details Of Plan to Revamp Network (NYT)
Smart Devices Peep Into Your Grocery Cart (NYT)
Record and CD's? How Quaint (NYT)

Radio
On the Pulse of a People: Dr. Elmer Huerta Preaches What He
Practices, Dispensing On-Air Health Advice to
Latino Communities (WP)

Disabilities
Pictures come to their senses (ChiTrib)

Lifestyles
Survey Finds TV Is Major Casualty of Net Surfing (NYT)
www.How Smart Are You.quiz (NYT)

** Legislation Update **

Title: Cities fight Web sales tax break
Source: Chicago Tribune (Sec 3, p.1)
http://chicagotribune.com/textversion/article/0,1492,ART-11643,00.html
Author: Matt Berger (Washington Bureau)
Issue: Electronic Commerce
Description: The Internet Tax Freedom Act, if passed, would grant a three to
six-year moratorium on state and local taxes on products sold over the
Internet. The measure is designed to encourage electronic commerce, but
local and state governments fear that lost store-front sales could cost them
million of dollars. The National League of Cities (NLC) estimates as much
as $15 billion in lost sales tax revenues by 2002. "The federal government
is taking away the power of local government to get revenue," said the
executive director of NLC.

Title: Senators Praise E-Rate Internet Filtering Bill
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Legislation
Description: Amid rumors of a website that will show two 18-year-olds having
sex August 4, Senate Commerce Committee Chairman John McCain (R-AZ), Sens.
Pat Murray (D-WA), Joseph Lieberman (D-CT) and Dan Coats (R-IN) spoke on the
Senate floor in favor of S.1619, a bill that would require schools and
libraries receiving e-rate discounts to have Internet blocking and filtering
software.

Title: House Appropriations Committee Does Not Change FCC Funding
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Budget Issues/Legislation
Description: House Appropriations Committee July 15 approved a bill for
fiscal year 1999 funding for the FCC, National Telecommunications and
Information Administration (NTIA) and other agencies. The bill will cut FCC
funding by $5 million. Appropriations Committee Chairman Bob Livingston
(R-LA) is not concerned about House Commerce Committee Chairman Thomas
Biley's (R-VA) to Internet filtering language in a Dept of Labor & Dept of
Health and Human Services spending bill. Rep Livingston believes his
Committee has overlapping jurisdiction with the Commerce Committee.

** Mergers **

Title: Justice Clears MCI Acquisition
Source: Washington Post
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/16/179l-071698-idx.html
Author: Mike Mills
Issue: Mergers/Telephony
Description: Yesterday the Justice Department approved the $37 billion
acquisition of MCI Communications Corp. by WorldCom Inc. The Federal
Communications Commission will now rule on weather the "public interest"
will be served by the merger. Consumer groups worry about the merger's
effect on MCI and WorldCom's commitment to residential service. While
WorldCom has pledged to "not abandon MCI's residential long-distance
customers," senior official have expressed the company's desire to
exclusively focus on the more lucrative business market.

Title: Justice Department Clears MCI-WorldCom Merger After Internet Sale
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Merger
Description: The US Department of Justice has approved the merger of long
distance companies MCI and WorldCom. MCI, in the biggest merger divestiture
ever, sold its remaining Internet business to gain the approval. "The merger
as it was originally proposed would have given WorldCom/MCI a significant
proportion of the nation's Internet traffic, giving the company the ability
to cut off or reduce the quality of Internet services that it provided to
its rivals," said Justice Department Antitrust Chief Joel Klein. "The
divestiture benefits anyone who relies on the Internet because it preserves
competition among major Internet service providers." The Federal
Communications Commission must still approve the deal; that approval is
expected later this month.

Title: Illinois Group Opposes Whitacre's Arguments for Ameritech-SBC
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Mergers
Description: The Illinois Partnership for Fair Telecommunications Policy
(IPFTP) cited a June complaint filed with the California utility regulatory
commission by the state's Office of Ratepayer Advocacy alleging Pacific Bell
(a subsidiary of SBC) is engaging in major and systematic residential
service marketing abuses. IPFTP says the effect of the SBC-PacTel merger is
evidence of why the Ameritech merger should be denied. Also, former Illinois
Commerce Commission Chairman Ellen Craig, now regulatory affairs vice
president for USN Communications, is suggesting that the ICC direct
Ameritech, SBC and new entrants to come to competition agreements as part of
the merger review. The ICC's rules allow for up to 11 months to review the
merger. [See more SBC-Ameritech stories at
http://www.benton.org/Library/State/media.html]

** International **

Title: U.S., Mexico closing In on a Telephone Deal
Source: Wall Street Journal (A12)
http://wsj.com/
Author: Jonathan Friedland
Issue: Long-Distance/International
Description: Javier Lozano, Mexico's new telecommunications czar, says he
has figured out a way to solve the dispute among Mexican and U.S.
long-distance carriers. In an interview. Lozano said that Telefonos de Mexico
SA (Telmex), Mexico's dominant carrier, and companies controlled by AT&T and
MCI, Avantel SA and Alestra SA, are in basic agreement on the terms of the
accord that will assure "clean and efficient competition." The accord, in a
nutshell, would substantially reduce the charges other carriers pay to
interconnect with Telmex and would largely do away with a 58 percent
surcharge embedded in those charges that was designed to help the former
monopoly meet obligations to provide service to Mexicans living in rural
areas." In exchange, Avantel and Alestra would partly reimburse Telmex for
the $422 million cost of improving its infrastructure which the new carriers
use to provide their services on a nationwide basis. Mr. Lozano hopes to
formally announce the accord by next month.

** InfoTech **

Title: Integrated system separates Sprint from competitors
Source: Chicago Tribune (Sec 3, p.3)
http://chicago.tribune.com
Author: Jon Van
Issue: Telephone
Description: At Internet World 98, in Chicago this week, Sprint is touting
its new Integrated On-demand Network (ION) which will provide voice, video,
and data services over one line. ION will be available to large businesses
in Chicago, New York and five other cities by the end of the year; smaller
businesses and some homes could enjoy the service as soon as late 1999. "The
other guys pay too much attention to the `last mile' problem of connecting
their networks to customers," said William T. Esrey, chairman of Sprint.
"But they haven't thought enough about what happens on their network. That's
where we're focused."

Title: Sprint Is Laying Out Details Of Plan to Revamp Network
Source: New York Times (D7)
http://www.nytimes.com/library/tech/98/07/biztech/articles/16sprint.html
Author: Seth Schiesel
Issue: Telephony
Description: Last month Sprint Corp. announced a program to revamp its
communications to provide integrated data and video information at high
speeds. Since that time it has made deals with Ameritech, BellSouth GTE and
SBC Communications to use those local companies' fiber optic networks within
cities. Sprint is continuing to try and negotiate deals with other large
competitive local phone providers, like AT&T's Teleport unit and WorldCom's
MFS operation, and the remaining Bell local phone companies. Sprint's
Chairman, William Esrey, said in an interview last week that the deals with
existing local phone companies could allow Sprint to reach 70 percent of its
target business customers. Sprint plans to begin offering large companies
access to the integrated network later this year and make the service
generally available to business customers near the middle of next year and
to consumers late in 1999.

Title: Smart Devices Peep Into Your Grocery Cart
Source: New York Times (E3)
http://www.nytimes.com/library/tech/98/07/circuits/articles/16geek.html
Author: Steven E. Brier
Issue: New Technology
Description: By using a combination of so-called loyalty cards, radio
frequency identification, smart cards and smart shopping carts, grocery
stores are working to personalize the shopping experience and provide the
shopper with more information while increasing sales. Some stores are using
electronic shelf cards to display price information. Others are using kiosks
with scanners so a customer can check on the price of an item of which they
are unsure. Shelf tags can be programmed to offer nutritional information
along with the price. And shopping carts are being developed that can scan
items placed in the cart so the shopper can keep a running tab, and the cart
can offer suggestions for other items, based on selections already made.
"This is all about providing more customer service in order for retailers to
gain a competitive advantage," said Ralph Martino, an IBM executive helping
the supermarkets with the technology. "Stores want to capture more of the
wallet share by being more knowledgeable about the customer." (What would
Mr. Whipple say now?)

Title: Record and CD's? How Quaint
Source: New York Times (B1,B6)
http://www.nytimes.com/library/tech/yr/mo/cyber/articles/16downloading-musi
c.html
Author: Jon Pareles
Issue: E-Commerce
Description: Electronic distribution is a big topic at Plug In '98, a
conference on music in the digital era taking place in NYC this weekend. If
transferring music over the Internet continues to increase in popularity,
eventually, home music collections could become obsolete and stores could
see their role reduced as consumers are able bypass the middlemen and access
music from central archives upon demand. Mark Mooradian, group director of
consumer content for Jupitor Communications, one of the groups organizing
the conference, says that Jupitor thinks record labels should aggressively
pursue digitally downloaded music. "He said digital distribution should be
important for its marketing value, to combat piracy and to reposition labels
as retail outlets." Individual musicians and independent labels see this
form of distribution as a way to deliver music directly to the listener.
"Record companies have a lock right now on how an artist can get music out
to a global audience," said Larry Rosen, the chairman of N2K, which owns the
online retail site of Music Boulevard as well as its own N2K label, which
makes some of its songs available for digital downloading. "With electronic
distribution of music, there's a break in that kind of power structure."

Title: Videophones, Evolve, Slowly
Source: New York Times (E1,E7)
http://www.nytimes.com/library/tech/98/07/circuits/articles/16vide.html
Author: Ian Austen
Issue: Telephony
Description: While the world's fist videophone was introduced by AT&T over
1964, companies are just begriming to realize that there are serious limits
to the market ably of this "Star Treck" technology. Today's videophone
technologies include both television-based and computer-based systems. "We
are very realistic: it's not a mass-market product," says Dainel Flohr of
C-Phone, a videophone manufacturer. "Everyone's not going to run out and get
one." Psychological barriers appear to be an important deferent to
mass-market success. "People who don't use videophones are worried about
having their privacy invaded", says Professor Mantei Tremaine who has
studied videophones for more than nine years, "People who did use them
feared they were invading someone else's privacy."

** Radio **

Title: On the Pulse of a People: Dr. Elmer Huerta Preaches What He
Practices, Dispensing On-Air Health Advice to Latino Communities
Source: Washington Post (C1, C10)
http://www.washingtonpost.com/wp-srv/WPlate/1998-07/16/232l-071698-idx.html
Author: Nicholas Day
Issue: Health/Minorities/Radio
Description: Dr. Elmer Huerta, founder and director of the Cancer Risk
Assessment and Screening Center at the Washington Hospital Center, is
probably sole carrier of the title 'national latino heath celebrity'.
Huerta's daily 2 minute health announcements, which air on radio stations
across the US and in 21 Latin American countries, attempt to provide the
latino community with simple prevention techniques that can help people
avoid or detect cancer and other serious deceases. The idea of using
broadcast media to disseminate his message came to Dr. Huerta is his native
Peru when he noticed that people knew little about health, but a lot about
soap operas and Top 40 music,"They were exposed to the media," he
says,"that's what clicked in my mind."

** Disabilities **

Title: Pictures come to their senses
Source: Chicago Tribune (Sec 3, p.1)
http://chicagotribune.com/textversion/article/0,1492,ART-11921,00.html
Author: Jeff Coen
Issue: Disabilities
Description: Captioning and video description -- services available to some
disabled people watching television -- is coming to General Cinema movie
theaters. "With this system, I got everything and had the same rich
experience as anyone else," said one user. "This means independence for me."
The technology was developed by Boston public television station WGBH in
cooperation with California's Digital Theater Systems. For now, Genera
Cinema is viewing the deployment of the technology "the right thing to do"
rather than a money-making venture. The DuPage Center for Independent Living
estimates that 2% of the population in the Chicago area suffer from vision
or hearing impairments.

** Lifestyles **

Title: Survey Finds TV Is Major Casualty of Net Surfing
Source: New York Times (E3)
http://www.nytimes.com/library/tech/98/07/circuits/articles/16ugee.html
Author: Matt Richtel
Issue: Internet Use
Description: A recent survey by Strategis Group, a Washington-based research
firm that studies patterns in telecommunications use, has found that
cyberspace is stealing time from watching TV, working, sleeping and
exercise. But the activity being most effected is television- and
VCR-watching. Of 500 Net users surveyed, nearly 65 percent said they had
sacrificed time in front of the television for time in front of the
computer. Forty-eight percent reported they spent less time reading and 29
percent said they slept less. What does this mean? According to John
Zahurancik, director of Internet and telephony at Strategis Group, said the
findings show that "The Net is becoming a mainstream medium. It is a
competition to all these other traditional sources of entertainment." Allen
Goldberg, vice president for business development at Relevant Knowledge, a
research company based in Atlanta, points out that it took 40 years for
radio to gain 50 million domestic listeners and 13 years for television and
cable TV to acquire the same number of viewers. While Goldberg acknowledges
that the population is larger now, he said it is noteworthy that it has
taken only four years for the Web to reach the same plateau.

Title: www.How Smart Are You.quiz
Source: New York Times (E1,E7)
http://www.nytimes.com/library/tech/98/07/circuits/articles/16quiz.html
Author: Katie Hafner
Issue: Internet Use/Lifestyle
Description: The Internet has become a breeding ground for thousands of
tests you can administer to yourself. These tests range in everything from
questions purported to test your intelligence and emotional stability, to
your predisposition towards hypochondria, alcoholism, attention deficit
disorder, etc. The interesting thing is that many people seem to enjoy
taking these tests "created by psychometricians, professional and
otherwise." But there is something (how's that for an ambiguous word?)
alluring about these optional tests that will rank you in terms of your
genius or lovability. There are already a number of quizzes available in
magazines, on the radio and television. And with such tests now available on
the Web, there are "no visible proctors or stopwatches, and no one to raise
an eyebrow at your response to a question on sexual habits. For instance,
you might scoff a Mensa, the organization of self-anointed geniuses, but it
is hard to turn down the chance to spend three minutes on a test to see if
you would be admitted."
*********