Communications-related Headlines for December 18, 1997

Universal Service
FCC: Commission Revises Universal Service Collection Amounts For the
First
Six Months of 1998 to Better Correspond With Anticipated Demand

Privacy/Internet Regulation
NYT: A Plan for Database Privacy, But Public Has to Ask for It
NYT: Agreement to Test Feasibility of Data Controls
WP: F.T.C. Backs Industry's Internet Privacy Rules

Corporate Social Responsibility
WSJ: Technology Have-Nots

Antitrust
NYT: U.S. Assails Microsoft and Seeks New Oversight Role
WP: Justice Department Says Microsoft In Contempt
WSJ: U.S., Microsoft Clash on Court-Order Compliance

Cable
WP: F.C.C. Chief Wants to Look at New Controls on Cable

Internet Use
WSJ: Red Flags From Leading Web-Ad Seller

** Universal Service **

Title: Commission Revises Universal Service Collection Amounts For the First
Six Months of 1998 to Better Correspond With Anticipated Demand
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1997/fcc97411.html
Issue: Universal Service
Description: During the first six months of 1998, the Federal Communications
Commission has decided to collect only as much as required by demand for the
federal universal service support mechanisms for schools and libraries and
rural health care providers. These decisions were made in an effort to
"reduce the financial burdens on universal service contributors without
jeopardizing the sufficiency of the support mechanisms."

** Privacy/Internet Regulation **

Title: A Plan for Database Privacy, But Public Has to Ask for It
Source: New York Times (A1,A24)
http://www.nytimes.com/library/cyber/week/121897ftc.html
Author: Katharine Q. Seelye
Issue: Privacy/Internet Regulation
Description: More than a dozen companies that use cyberspace to disseminate
private information announced yesterday that they would voluntarily limit
access to it by the end of next year. This move was made in an effort to
stave off restrictive legislation. Consumers, however, will have to take
the first steps in initiating restriction to access by requesting that their
names be removed from databases containing private information that is
available to the public.

Title: Agreement to Test Feasibility of Data Controls
Source: New York Times/CyberTimes
http://www.nytimes.com/library/cyber/week/121897ftc-side.html
Author: John Markoff
Issue: Privacy/Internet Regulation
Description: By agreeing to allow private information brokers and credit
reporting companies to govern themselves through voluntary privacy
protection guidelines, the Federal Trade Commission is betting that these
companies can police themselves in the face of increasingly powerful
information technologies. Many civil libertarians insist that the FTC's bet
is a gamble on the privacy rights of all Americans. While the newly
established guidelines allow individuals to "opt out" of some commercial
databases, they do not offer consumers any "new access to information about
themselves held in the computers look-up service. The agreement does not
offer average people an easy way to check what personal information about
them is being sold or to find out who is getting it, nor are people given a
means to contest its accuracy. Privacy groups argue that the new guidelines
are insufficient, especially because they offer no remedies for people who
believe they have been harmed by the dissemination of information in
commercial databases." Robert Pitofsky, the FTC's Chairman, has
acknowledged his disappointment that the industry group has refused to give
consumers access to information about themselves but argues that the new
guidelines should be given a substantial test before new laws are enacted.
"This is an impressive step in the direction of self regulation," Mr.
Pitofsky said. "The history of self regulation is you start here and then
see where you go in the future."

Title: F.T.C. Backs Industry's Internet Privacy Rules
Source: Washington Post (E2)
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/18/215l-121897-idx.html
Author: David Segal
Issue: Privacy/Internet Regulation
Description: The Federal Trade Commission announced yesterday that they
endorse a wide-ranging set of principles on privacy-related issues drafted
by some of the largest companies in the computerized database industry.
Their endorsement is a major victory for the industry which devised this set
of rules in hopes of heading off legislative oversight by Congress. At a
news conference, Robert Pitofsky, FTC Chairman, said, "This is an
outstanding effort toward self-regulation and we hope that other industries
will pay attention to these principles when devising their own standard."

** Corporate Social Responsibility **

Title: Technology Have-Nots
Source: Wall Street Journal (A1)
http://wsj.com/
Author: Pamela Sebastian
Issue: Corporate Social Responsibility
Description: The Conference Board, a business-research group in New York, is
heading a two year project called the Digital Partnerships Program. The
project is aimed at enhancing the role of technology companies in community
economic development and will work with community groups and executives to
identify business ventures that reduce poverty and enhance business. Craig
Smith, the project director, says the main idea behind Digital Partnerships
is to provide low-income people with entrepreneurial opportunities and to
develop new markets for technology companies.

** Antitrust **

Title: U.S. Assails Microsoft and Seeks New Oversight Role
Source: New York Times (D1,D7)
http://www.nytimes.com/library/cyber/week/121897microsoft.html
Author: Stephen Labaton
**
Title: Justice Department Says Microsoft In Contempt
Source: Washington Post
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/18/219l-121897-idx.html
Author: Rajiv Chandrasekaran and Elizabeth Corcoran
**
Title: U.S., Microsoft Clash on Court-Order Compliance
Source: Wall Street Journal (A3,A14)
http://wsj.com/
Author: Don Clark
Issue: Antitrust
Description: The Justice Department asked a federal judge to hold Microsoft
in contempt for attempting to defeat the purpose of the court order to
separate its Internet software and operating systems. Department officials
accused Microsoft of offering three unworkable choices to computer
manufacturers and thus violating last week's antitrust ruling. In court
papers, the Justice Department said, "Far from treating the court's order
with obedience and respect until properly challenged, Microsoft has
cynically acted as if the preliminary injunction permits it to perpetuate
the very conditioning the Court enjoined. Microsoft's naked attempt to
defeat the purpose of the Court's order and to further its litigation
strategy is an affront to the Court's authority; the Court accordingly
should hold Microsoft in civil contempt and act swiftly to bring it into
compliance." The department renewed its request that the court impose $1
million a day fine on the company. Adding a request that the judge give the
Government authority to review any new operating systems or browsers made by
Microsoft at least 30 days prior to retail release.
[As you probably have gathered, the above is a combined overview of articles
run in the listed newspapers. This move was made in an attempt to save
viewing time and prevent Microsoft litigation burnout.]

** Cable **

Title: F.C.C. Chief Wants to Look at New Controls on Cable
Source: Washington Post (E1,E2)
http://www.washingtonpost.com/wp-srv/WPlate/1997-12/18/210l-121897-idx.html
Author: Paul Farhi
Issue: Cable
Description: Based on survey results released this week, the Federal
Communications Commission has decided to explore new controls on the cable
industry, including a freeze on further increases. The survey found that
the average consumer's monthly bill has increased by approximately 9 percent
in the 12 month period, ending on July 1, or about four times the consumer
price index. William F. Kennard, FCC Chairman, said in response to the
rise, "we're not heading in the right direction. We need to send up a red
flare that this trend can't continue...The answer is clearly more
competition [for cable companies], and it may be more regulation."

** Internet Use **

Title: Red Flags From Leading Web-Ad Seller
Source: Wall Street Journal (B1,B6)
http://wsj.com/
Author: Thomas E. Weber
Issue: Internet Use
Description: One of the largest dilemmas that the Internet is facing today
is that regardless of its high-speed growth, on-line advertising isn't
paying the bills. DoubleClick, Inc., a top Web advertising network
preparing to go public, recently announced that it expects to lose money "at
least" until 1999. Highlighting some of the pitfalls for the entire
industry, DoubleClick has found that regardless of the number of ads a
company runs, heavy Net usage does not translate into large ad revenues.
With revenues from web-ads continuing to be disappointing, some critics
question whether it will ever be an economic foundation for sites.
Increasingly, observers think that on-line shopping and other forms of
commerce will be the ones to make the medium profitable.
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