Telephony
WSJ: Judicial Activism May Lower Your Phone Bill (1/7/98)
WSJ: Maverick Judge In Telecom Case Bucks System
WSJ: U.S. Asks Judge to Put Ruling on Hold Allowing Bell Firms Into
Long-Distance
CommDaily: Tauzin Asks FCC to Consider Broader Local Competition Standard
NYT: SBC Emerging as a Bull in the F.C.C.'s China Shop
WSJ: AT&T Is Expected to Purchase Teleport In a Stock Deal Valued Up to
$11 Billion
WSJ: Who Will Win The Telco Wars?
Internet/Online Services
NYT: California Governor Plans Major Push To Increase Online Education
NYT: AOL Sues
WSJ: Lawsuit Asks Court to Bar E-Mail Sent by Bulk Mailers
WSJ: On-Line Chat Can Be Safe -- If You Know What to Say
Microsoft
WP: Microsoft Official Says Battle Is Taking a Toll
WSJ: Microsoft Mulls Ways to Sweeten Its Bully Image
Journalism/Advertising
WP: A Tough Sell for David Brinkley
Lifestyles!
WP: Are Car Phones a Hazard? Report Is a Call to Action
** Telephony **
Title: Judicial Activism May Lower Your Phone Bill
Source: Wall Street Journal (A22, 1/7/98)
http://wsj.com/
Author: Robert W. Crandall
Issue: Long Distance
Description: Judge Kendall ushered in the new year by declaring
unconstitutional those provisions of the Telecom Act of 1996 that bar local
Bell companies' entry into the long-distance service until the Bells pass a
tortuous set of regulatory hurdles. Unless he's reversed, several Bell
companies will soon begin to compete with long-distance titans AT&T, MCI,
Sprint, and Worldcom. Regulators, antitrust officials and the Bells'
potential competitors have all criticized Kendall's ruling, but there
would probably be no competition in telecommunications today but for activist
judges.
Title: Maverick Judge In Telecom Case Bucks System
Source: Wall Street Journal (B1)
http://wsj.com/
Author: Ann Davis
Issue: Long Distance
Description: When SBC wanted a judge to rule against a new
telecommunications law, it made a beeline for Joe Kendall. Normally
plaintiffs can't handpick a judge to hear their case, but SBC filed its
challenge in federal court in Wichita Falls, Texas -- hundreds of miles north
of its San Antonio headquarters -- where only one judge handles the entire
caseload. Kendall is known for his efficiency, independence, and willingness
to deal defeat to the gov't. He lived up to his reputation when he embraced
SBC's unorthodox theory that the Telecom Act singled out SBC for punishment
without a trial. He also agreed with SBC that the law unfairly limited Bell
regional phone companies' entry into the long-distance market while imposing
no such restrictions on competitors without ties to the old Bell system.
Title: U.S. Asks Judge to Put Ruling on Hold Allowing Bell Firms Into
Long-Distance
Source: Wall Street Journal (B7)
http://wsj.com/
Author: Michael Schroeder
Issue: Long Distance
Description: The Justice Dept. asked a Texas judge to put on hold a
controversial New Year's Eve ruling that overturned a key part of the
Telecom Act and allow regional Bell companies to enter the long-distance
business. In its filing to the district court, the Justice Dept. said it
plans to appeal the ruling and asked Judge Kendall to stay his decision
until a higher court completes its review. Several long-distance carriers, like
AT&T, Sprint, and MCI have asked for a stay and plan to appeal. The Justice
Dept., representing the FCC, said Judge Kendall's ruling would "radically
reshape the comprehensive legal framework crafted by Congress in the 1996 Act."
Title: Tauzin Asks FCC to Consider Broader Local Competition Standard
Source: Communications Daily
Issue: Television
Description: On Wednesday, House Telecom Subcommittee Chairman Billy Tauzin
(R-LA) said that the Federal Communications Commission should consider
whether PCS providers could be considered as providing sufficient
competition to justify allowing incumbent telecos into long distance market.
In a January 7 letter to FCC Chairman Kennard Rep Tauzin expressed
disappointment in the FCC's decision to deny BellSouth's entrance into the
long distance market in South Carolina as well as concern "about the way in
which the [Telecom] Act is being implemented."
Title: SBC Emerging as a Bull in the F.C.C.'s China Shop
Source: New York Times (D5)
http://www.nytimes.com/yr/mo/day/news/financial/phone-assess.html
Author: Seth Schiesel
Issue: Telecom Regulation
Description: SBC, the parent company of Southwestern Bell and Pacific Bell,
appears to be seeking a path into the long-distance market by whatever means
necessary. Under SBC persuasion, a court ruling last week struck down key
elements of the Telecommunications Act of 1996. This decision could prove to
be a bonanza for SBC and the other Bells, but the ruling will most likely
not go into effect any time soon and could end up in the Supreme Court. In
addition, SBC's current takeover of Southern New England Telecommunications
Corp. could be rejected by regulators. The Telecommunications Act requires
that the five local Bell companies convince the federal government that
their networks are open to competition before being allowed to offer
long-distance services to their customers. So far the FCC has rejected all
three petitions it has ruled on and it seems that little has changed since
the Act's onset. "We have a telecom act that is currently not operational,"
said C. Michael Armstrong, chairman of AT&T, the company that has the most
to lose from the Bell's entry into the long-distance market. "The industry
and the government need to step back in the midst of all this and discuss
alternatives to accomplishing opening markets, having choice and creating
local competition."
Title: AT&T Is Expected to Purchase Teleport In a Stock Deal Valued Up to
$11 Billion
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Leslie Cauley & Steven Lipin
Issue: Merger
Description: AT&T is close to acquiring Teleport Comm. for $10-$11 billion
in stock. The purchase would give AT&T a quick entry into the local phone
markets of the nation's biggest urban centers. Teleport is the biggest of a
new breed of companies offering local phone services primarily to business
customers in competition with the Baby Bells and other established phone
companies.
Title: Who Will Win The Telco Wars?
Source: Wall Street Journal (Op-eds, A9)
http://wsj.com/
Author: WSJ Editorial Staff
Issue: Competition
Description: In handicapping the supposed "coming Armageddon" between the PC
and Internet companies and the U.S. local telecommunications industry, Rich
Karlgaard perpetuates the image of local telcos as clueless, affable
bumblers sitting in the cross hairs of ruthless digital barbarians such as
Microsoft's Bill Gates and Intel's Andy Grove. First, telecommunications
isn't manufacturing, it's a service industry based on operating a
ubiquitous, shared physical infrastructure. Success is measured by the
number of customers mutually connected by the infrastructure, and by the
reliability and usability.
** Internet/Online Services **
Title: California Governor Plans Major Push To Increase Online Education
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/010898california.html
Author: Pamela Mendels
Issue: Education Tech
Description: When Governor Pete Wilson releases details of his budget
proposal today, it is expected that a major initiative to promote "distance
learning" in California will be formally announced. In an effort to boost
the state's "California Virtual University," Gov. Wilson is hoping that the
State Legislature will agree to spend $5.9 million on the project in the
fiscal year beginning in July, and $12 million over the next three years.
The project is a significant part of a Web-based catalogue of distance
learning courses offered by approximately 65 accredited public and private
colleges and universities in the state. It is hoped that eventually up to 80
percent of California's 301 accredited schools will take part.
Title: AOL Sues
Source: New York Times (D9)
http://www.nytimes.com/library/cyber/week/010898aol.html
Author: Associated Press
Issue: Online Services
Description: America Online filed suit against three more companies on
Tuesday seeking to halt the sending of unsolicited messages to the online
service's members. AOL is seeking an injunction and damages from the
companies. The three firms in mention are: IMS of Knoxville, TN; Gulf Coast
Marketing of Baton Rouge, LA; and TSF Marketing and TSF Industries of
Riverside, CA.
Title: Lawsuit Asks Court to Bar E-Mail Sent by Bulk Mailers
Source: Wall Street Journal (B6)
http://wsj.com/
Issue: E-Mail
Description: AOL filed a lawsuit against three alleged junk e-mail services,
seeking an injunction to prevent the firms from sending unsolicited e-mail.
AOL has filed numerous suits against so-called spammers contending they
clog the company's computer system and annoy its members. A group called the
Nat'l Organization of Internet Commerce threatened to disseminate a massive
list of AOL members' e-mail addresses unless AOL agreed to stop blocking
bulk e-mail. The group also runs TSF Marketing, a bulk e-mailer named by AOL
in its suit.
Title: On-Line Chat Can Be Safe -- If You Know What to Say
Source: Wall Street Journal (B5)
http://wsj.com/
Author: Rebecca Quick
Issue: Internet/Privacy
Description: As millions of people pile into chat rooms on the Internet,
horror stories involving stalkers and the like are beginning to crop up more
often. In cyberspace, anonymity often cloaks people. Also, reams of personal
information are readily available on the Internet, making it easy for a
casual online acquaintance to find out where you live, for example. There
are precautions that online chatters can take to remain safe while on-line:
1) keep secrets, 2) go with your gut, 3) watch your signals, 4) beware the
telephone, 5) be wary in the real world, and 6) don't give up hope. The
Internet can be an easy way to meet people, particularly for those who are
too shy or too busy to go the usual routes.
** Microsoft **
Title: Microsoft Official Says Battle Is Taking a Toll
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/08/195l-010898-idx.html
Author: Elizabeth Corcoran
Issue: Antitrust
Description: In a campaign to tell its side of the story to the public and
customers, Microsoft's number two executive, Steve Ballmer, said in an
interview that the antitrust case is shaking the company's relations with
customers and hurting company morale. "I don't think we've behaved wrongly
or immorally. But we're a company that's viewed as having more power than we
think we have. And the perception is that we're harsh company that's using
its power improperly." Known as tough, abrasive competitors, Microsoft execs
are spending there time analyzing whether the very culture of the company
must change, Mr Ballmar said. "What principles do we need? How do we train
guys like me to behave in a world where we have to be more sensitive?" [No
lawsuit needed...just sensitivity training]
Title: Microsoft Mulls Ways to Sweeten Its Bully Image
Source: Wall Street Journal (B6)
http://wsj.com/
Author: David Bank & Don Clark
Issue: Microsoft
Description: Executive VP of Microsoft, Steve Ballmer, said recent focus
groups and e-mail messages show a swing in attitudes against the company
among information-technology professionals and consumers. The negative
opinions followed a federal judge's injunction against Microsoft last month
and the company's combative response to the order. Mr. Ballmer said, "The
number of people who are enthusiastic about the products and the company has
clearly taken a dip. It's not cataclysmic but it's clear." As a result of
the public relations damage, the company is considering ways to reduce its
perception of insensitivity among customers and potential partners. Ideas
include some sort of internal code of conduct, but Mr. Ballmer said that no
immediate steps are imminent. Additional steps include informing potential
partners in advance about risks before signing deals or disclose
confidential information to the company.
** Journalism/Advertising **
Title: A Tough Sell for David Brinkley
Source: Washington Post (B1)
http://www.washingtonpost.com/wp-srv/WPlate/1998-01/08/124l-010898-idx.html
Author: Howard Kurtz
Issue: Journalism/Advertising
Description: Many journalists are "aghast" with David Brinkley's decision to
become a TV spokesman for Archer Daniels Midland, the Illinois-based
agribusiness giant that sponsored ABC's "This Week with David Brinkley."
Daniel Schorr said," He built his reputation on being this acerbic,
no-nonsense guy who would never lie to you. What he is doing is giving *his*
reputation for integrity to ADM for money. What does he do the next time the
company is fined $100 million for antitrust violations?"
** Lifestyles! **
Title: Are Car Phones a Hazard? Report Is a Call to Action
Source: Washington Post (C1)
http://www.washingtonpost.com/
Author: Cindy Skrzcki
Issue: Lifestyles!
Description: An early contestant for this year's "Firmest Grasp of the
Obvious Award" is the National Highway Safety Administration. In a report
issued yesterday, NHTSA finds that cellular telephones can be an asset in
contacting law enforcement authorities and reporting road accidents and
traffic conditions. However, they are also a distraction that may increase
driver's risk of an accident on already crowded highways. NHTSA has been
collecting data for three years on cell phones and automobile crashes and
concludes: "there are trends that show that cellular telephone use is a
growing factor in crashes."
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