Communications-related Headlines for 1/29/98

Internet
WSJ: AOL Will Roll Out Guide for New York To Attract Local Ads
WSJ: Web Sites, Other PC Wonders Draw Crowds of Retirees

Telephony
TelecomAM: FCC Invites Bells To Discuss LD Applications, But Staffer Mentions
Stall Tactics
TelecomAM: Bell Atlantic Asks FCC For Help With Long Distance Application

Television
NYT: F.C.C. Plans to Take Look at Free Political Broadcasts

Jobs:
WP: A Program For Producing Techies

Research & Technology
NYT: U.S. Plans to Extend Tax Credit for Research

Corporate News
WP: Egghead To Close Stores
WSJ: Egghead, Reporting Quarterly Loss, To Close All Stores,
Move to Internet
NYT: Apple Reorganizes Claris Unit, Laying Off 300
WSJ: Cisco and Intermedia Ally With U S West In Networking Push

** Internet **

Title: AOL Will Roll Out Guide for New York To Attract Local Ads
Source: Wall Street Journal (B10)
http://wsj.com/
Issue: Internet
Description: AOL is expected to unveil a New York version of its city-news
and entertainment guides, an effort to capture local advertising dollars.
Digital City New York also will include commentary from well-known New
Yorkers such as journalist Pete Hamill and monologuist Spalding Gray. AOL's
one million New York members, as well as Web users, will be able to
communicate via chat rooms and put up home pages in a special area known as
the Virtual Neighborhood.

Title: Web Sites, Other PC Wonders Draw Crowds of Retirees
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Jim Carlton
Issue: Seniors & the 'Net/Lifestyles
Description: Packard Bell NEC reports that in 1997 customers over age 55
accounted for 14% of retail purchases of its PCs. People aged over 50 use
their PCs 14 days a month, according to the PC Meter tracking system of
Media Metrix, Inc. That's good news for the industry -- which is scrambling
to figure out how to capitalize on it. "The big challenge of marketing to
seniors is they are so diverse," says Hollie Chriss Cronin, senior manager
of desktop products at AST Computer. Packard Bell Electronics officials say
they have only recently begun holding focus groups with older people to
formulate a marketing strategy for them. Packard Bell, along with other
manufacturers, has also been in discussions with Microsoft to devise a
marketing campaign for software that might appeal to the older user.

** Telephony **

Title: FCC Invites Bells To Discuss LD Applications, But Staffer Mentions
Stall Tactics
Source: Telecom AM---Jan. 29, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: The FCC took its first formal step toward the "cooperative
approach" to long distance applications that several commissioners have
suggested recently, by saying it will meet informally with Bell company
officials to discuss their applications. The Common Carrier Bureau announced
that it will hold orderly meetings with the companies in coming weeks to
discuss "general issues" on the applications. The purpose of the meetings
will be to provide the Bells with "informal preliminary guidance" on market
entry, the FCC said.

Title: Bell Atlantic Asks FCC For Help With Long Distance Application
Source: Telecom AM---Jan. 29, 1998
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Bell Atlantic President and COO Ivan Seidenberg said that the
FCC needs to provide a clearer road map for Bell companies to win regulatory
approval to enter the long distance market. "They need to get their rules
straight," he told reporters. Seidenberg also called for deregulation of the
local business and data markets, saying that they are "plenty competitive."
On Jan. 27 the company asked the FCC to use the powers granted in Section
706 of the Telecom Act to permit it to provide high-speed broadband services
without regard to long distance boundaries. He said the filing is a good
chance for the Commission to prove its commitment to common sense regulation
and cooperation with the Bells.

** Television **

Title: F.C.C. Plans to Take Look at Free Political Broadcasts
Source: New York Times (A19)
http://www.nytimes.com/yr/mo/day/news/washpol/fcc-free-tv-ads.html
Author: Lawrie Mifflin
Issue: Free Time for Candidates/Campaign Finance Reform
Description: William Kennard, chairman of the Federal Communications
Commission, said that he would go ahead and start-up a process to require
broadcast television stations to give political candidates free advertising
time. Kennard said that commission staff members were currently drafting a
free-time proposal and that he would issue a "notice of proposed
rule-making" within two months to solicit debate on the subject with the
intention on formulating an FCC regulation. Sen. John McCain (R-AZ), who
chairs the Commerce Committee) responded saying that he believed Congress
would try to block any such ruling. "Decisions of that magnitude are made by
the legislative and executive branches, not a regulatory agency," McCain
said Wednesday. Kennard said, "I'd prefer that Congress take the lead on
this and provide a legislative solution but if Congress doesn't do so, the
FCC can and should be prepared to act. We have an obligation to insure that
the public airwaves are operating in a way that serves the public interest.
That's our mandate."

** Jobs **

Title: A Program For Producing Techies
Source: Washington Post (E1,E2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/29/237l-012998-idx.html
Author: Peter Behr
Issue: Jobs
Description: A pilot project in Falls Church, VA, is testing innovative ways
to deal with the region's increasing shortage of technology workers by
enlisting recruits from other work fields. The project is based on an
agreement between the 24 participating students and eight area Washington
employers in dire need of technicians: The students will pay for their first
three months of training. They are then offered paid internships at one of
the eight Washington companies. For the final three months, the students
will combine classroom work with on-the-job training. The project is being
run by the Northern Virginia Community College and financed through a state
grant.

** Research & Technology **

Title: U.S. Plans to Extend Tax Credit for Research
Source: New York Times (A15)
http://www.nytimes.com/library/cyber/week/012998tax.html
Author: John Markoff
Issue: Technology
Description: In a move that will most certainly be enthusiastically greeted
by Silicon Valley technology companies, Vice president Al Gore will announce
in a speech at Gerentech Corp., a biotechnology company, next week plans to
extend a $2.2 billion research-and-development corporate tax credit for one
year. The tax credit, which was first enacted in 1981, was established to
create an incentive for companies to increase their research and development
work in the United States. Originally, it was intended to expire at the end
of 1985, since then it has been extended eight times. "You wouldn't have a
Silicon Valley unless you have significant research and development
spending," said Douglas Henton, president of Collaborative Economics, an
economics consulting firm in Palo Alto, CA. An administration official
commented, "This is our way of saying, 'This is where the economy is heading
in the future."

** Corporate News **

Title: Egghead To Close Stores
Source: Washington Post (E1,E6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/29/230l-012998-idx.html
Author: Rajiv Chandrasekaran
Issue: Corporate Retrenchment
Description: Egghead Inc., one of the first companies to open computer
software stores in shopping centers across the U.S., announced yesterday
that they will be closing all of their real-world retail outlets and begin
to sell their products exclusively over the Internet. Although Egghead's
decision was partially motivated by a lack of sales in its software stores,
analysts call the company's decision to bet its future on the Internet a
bold and farsighted move. "The retail landscape is highly competitive. There
are many entities much larger than us selling products," said George P.
Orban, Egghead's chief executive. "We've asked ourselves some hard questions
and we think the real growth will take place on the Internet." Egghead is
the largest company to transfer over to an Internet-only retail operation.

Title: Egghead, Reporting Quarterly Loss, To Close All Stores, Move to Internet
Source: Wall Street Journal (B4)
http://wsj.com/
Author: Don Clark
Issue: Corporate Retrenchment/Internet Commerce
Description: Egghead is closing all of its stores and moving its business to
the Internet. They said it will close its 80 retail outlets and lay off 800
of its 1,000 workers. The remaining employees will work on the company's
software and hardware business on the Internet. They also said it will
change its name to Egghead.com to reflect the new sales strategy. Analysts
said the online approach stands a better chance, though Egghead's success
is far from assured.

Title: Apple Reorganizes Claris Unit, Laying Off 300
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/012998apple.html
Author: Associated Press
Issue: Corporate Retrenchment
Description: Apple Computer Inc., in an effort to continue to cut costs,
announced that it is reorganizing its Claris software subsidiary and laying
off approximately 300 employees. Claris will concentrate on its FileMaker
Pro database software and change its name to FileMaker Inc. Apple will take
charge of Claris' other products. "As FileMaker Inc., we can now focus all
our energies on our very successful FileMaker business," said Dominique
Goupil, president of Claris. "We are totally committed to growing this
business dramatically during the coming year."

Title: Cisco and Intermedia Ally With U S West In Networking Push
Source: Wall Street Journal (B7)
http://wsj.com/
Issue: Networks/Merger
Description: U S West Comm. announced two strategic alliances to reach big
customers outside its 14-state region. The Baby Bell said it will work with
Cisco systems to develop networked services such as fax over the Internet,
which can save money for corporate customers. U S West also said it has
allied with Intermedia Comm. to extend its data-networking capabilities. The
alliance with Intermedia allow U S West to offer "end-to-end" data and
networking services to businesses in its region, which it can't do now under
telecommunications law. "We can now get really aggressive and better service
the needs of our large business customers nationwide," said Joseph Zell,
president of U S West's data-networking unit.
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