Communications-related Headlines for October 21, 1997

(Microsoft) Legal Issues
NYT: U.S. Tells Court Microsoft Breaks Antitrust Accord
WP: U.S. Says Microsoft Violates Antitrust Pact
WSJ: U.S. Sues Microsoft over PC Browser
TelecomAM: At The Gates of Hell: European Union
Investigates Microsoft

Computer Technology
WSJ: Intel's Chip Innovations Could Scramble PC Industry

(AT&T) Corporate Telecommunications
NYT: AT&T Introduces Executive Who'll Take Over Company
WP: AT&T Picks Armstrong As New CEO
WSJ: Taking On a Tough Sell

International
NYT: NATO Says It Shut Serb Radio to Silence Propaganda

Internet
WP: From Bell Atlantic, a Primer on Perusing the Internet

Lifestyles
Telecom AM: New AT&T Survey Says Most Telecommuters See
Positive Career, Family Effects

Mergers
NYT: Diller's HSN In $4.1 Billion TV Asset Deal
WP: HSN to Aquire Cable Networks From Universal
WSJ: Diller and Universal Team Up to Build Television Titan

Wiring Regulations
Telecom AM: Inside Wiring Rule Changes Open Doors For MVPDs

** (Microsoft) Legal Issues **

Title: U.S. Tells Court Microsoft Breaks Antitrust Accord
Source: New York Times (A1, D22)
http://www.nytimes.com/index.map?422,146
Author: Stephen Labaton
Issue: Legal Issues
Description: Yesterday, the Federal Government ordered that Microsoft must
stop forcing makers of personal computers to include its Internet browser
when they install its Windows 95 software system. Janet Reno said the
petition was filed because Microsoft had violated an antitrust agreement
established. Reno commented, "Microsoft is unlawfully taking advantage of
its Windows monopoly to protect and extend that monopoly and undermine
consumer choice." The Justice Department will seek a fine of $1 million a
day until Microsoft changes its policy. Microsoft's lawyers said that the
antitrust prosecutors misinterpreted the agreement and that the corporation
plans to contest the petition.

Title: U.S. Says Microsoft Violates Antitrust Pact
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/20/0431-102197-idx.html
Author: Rajiv Chandrasekaran & Elizabeth Corcoran
Issue: Legal Issues
Description: The Justice Dept. asked a federal judge to find Microsoft in
contempt of court for violating a 1995 consent decree that sought to
restrain the company from using its market power to force PC makers to
distribute Microsoft's Internet browsing program (IE 4.0). Attorney General
Janet Reno said that they should pay a fine of $1 million each day it
continues to violate the agreement. This is the gov't.'s third legal move
against Microsoft, with many in the industry feeling that Microsoft unfairly
dominates the $102 billion software industry, and as a result holds back
innovation. Microsoft denies the allegations, citing misinterpretation of
the decree. "Forcing PC manufacturers to take one Microsoft product as a
condition of buying a monopoly product like Windows 95 is not only a
violation of the court order, it is plain wrong," Reno said at a news
conference. "Microsoft is unlawfully taking advantage of it Windows
monopoly...to undermine consumer choice."

Title: U.S. Sues Microsoft over PC Browser
Source: Wall Street Journal (A3)
http://wsj.com/
Author: Bryan Gruley, John R. Wilke, David Bank and Don Clark
Issue: Legal Issues
Description: The Justice Department filed a complaint in federal court
against the Microsoft Corporation's bundling of its 95 Windows software with
its Internet browser. "This lawsuit comes two years after Microsoft settled
government charges that it had illegally exploited its monopoly over
operating systems. The current petition says that Microsoft's practice
violates the 1995 consent decree where they agreed not to impose
anticompetitive licensing terms on PC makers. At the heart of this latest
fight is likely to be a simple but crucial question: Are Microsoft's
operating system and its Internet browser two distinct products, or should
they be considered one integral product?"

Title: At The Gates of Hell: European Union Investigates Microsoft
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Legal Issues
Description: The European competition authorities are investigating possible
abuse by Microsoft of its dominant position in Europe and alleged
anti-competitive agreements that are slowly forcing other companies out of
the market. EC officials plan to organize a closed hearing with Microsoft
before the end of the year.

** Computer Technology **

Title: Intel's Chip Innovations Could Scramble PC Industry
Source: Wall Street Journal
http://wsj.com
Author: Dean Takahashi
Issue: Computer Technology
Description: "Intel, the kingpin of chip makers, is pushing a series of
improvements to PC technology that also happen to make life difficult for
companies that clone Intel's products. As smaller rivals try to resist
those changes, industry executives say the likely outcome is a proliferation
of PC models with confusing differences in power and price."

** (AT&T) Corporate Telecommunications **

Title: AT&T Introduces Executive Who'll Take Over Company
Source: New York Times (D4)
http://www.nytimes.com/yr/mo/day/news/financial/att-armstrong.html
Author: Seth Schiesel
Issue: Corporate Telecommunications
Description: Yep, you guessed it, AT&T announced that C. Michael Armstrong,
now former chairman of Hughes Electonics, will be their new chief executive.
When Armstrong was asked about his appointment, he said, "It's been and
exciting and thrilling day; I've got a lot of adrenaline flowing."

Title: AT&T Picks Armstrong As New CEO
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/20/1061-102197-idx.html
Author: Steven Pearlstein
Issue: Corporate Telecommunications
Description: AT&T Corp. appointed C. Michael Armstrong, 59, chairman and
chief executive, thus ending a years-long search for a successor to Robert
Allen, whose chairmanship was marked with headline-making layoffs, and
disastrous forays into the computer business. AT&T's board of directors
insisted that Allen step down in 10 days so Armstrong could take the reins
and revive the telecom giant. The company also placed John D. Zeglis, 50, at
the No.2 post as company president. Despite Zeglis's former place as Allen's
protege, he and Armstrong vowed to make the new partnership work. Walter
Elisha, chairman of Spring Industries, and AT&T director, said, "We have
found a leader with exceptional technological vision, a good understanding
of the forces transforming the communications service industry and a strong
record of accomplishment."

Title: Taking On a Tough Sell
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/20/1021-102197-idx.html
Author: Mark Leibovich
Issue: Corporate Telecommunications
Description: C. Michael Armstrong is AT&T's new chairman and chief
executive, and one that friends describe as a "businessman athlete".
Analysts say that his energy will be vital to basically reinventing AT&T
with a creative and streamlined approach to reverse a shrinking lead in
long-distance calling while at the same time asserting itself in the local
phone market. Armstrong's signature is his ethic of obsessive salesmanship,
and will need it to reorient AT&T to meet the changing consumer demands in a
free-wheeling and unregulated telecommunications realm.

** International **

Title: NATO Says It Shut Serb Radio to Silence Propaganda
Source: New York Times (A3)
http://www.nytimes.com/yr/mo/day/news/world/bosnia-serb-tv.html
Author: Mike O'Connor
Issue: International
Description: On Saturday, NATO soldiers located and took over a main
transmitter used by hard-line Bosnian Serb nationalists. NATO and other
international peacekeepers said they were satisfied with this step which is
helping to bring about responsible new coverage in Bosnia. "This action
demonstrates a new cohesion and assertiveness by Western Governments in
confronting hard-line Bosnian Serb officials."

** Internet **

Title: From Bell Atlantic, a Primer on Perusing the Internet
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/20/1091-102197-idx.html
Author: Mark Leibovich & Mike Mills
Issue: Internet: General Info
Description: Bell Atlantic Corp. is offering a "Guide to the Internet", a
13-page primer on Internet lingo, popular WWWeb sites and search engines
tailored to online novices. The directory will be available to N. Virginia
residents in Jan. and to D.C. residents in April.

** Lifestyles **

Title: New AT&T Survey Says Most Telecommuters See Positive Career, Family
Effects
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Lifestyles
Description: In a survey conducted by AT&T, they found that "60 percent of
telecommuters are between the ages of 33 and 51, are married, feel good
about doing "telework," and believe teleworking has positive effects on
their careers and family life." (Time to boot up those computers, throw on
your robe and settle down to work with a nice cup-a-joe. Who needs casual day?)

** Mergers **

Title: Diller's HSN In $4.1 Billion TV Asset Deal
Source: New York Times (D1, D9)
http://www.nytimes.com/yr/mo/day/news/financial/diller-universal.html
Author: Geraldine Fabrikant
Issue: Mergers
Description: Yesterday, HSN Inc. agreed to acquire the Seagram Corporation
USA and Sci-Fi cable channels, including almost all of Seagram's Universal
television production company, for $1.2 billion in cash and $2.9 billion in
stock. This deal will give Barry Diller, HSN's chairman, the opportunity to
establish a broadcast network that could possibly compete with ABC, NBC, CBS
and FOX.

Title: HSN to Aquire Cable Networks From Universal
Source: Washington Post (C1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-10/20/1161-102197-idx.html
Author: Paul Farhi
Issue: Mergers
Description: Barry Diller, founder of Fox TV and owner of HSN Inc., the
parent company of the Home Shopping network, has agreed to buy Universal
Studios cable networks and other TV operations from parent Seagram Co. for
$4.1 billion in cash and stock. In interviews, Diller and Seagram Chairman
Edgar Bronfram sketched out plans the create the first hybrid
cable-broadcast network, which would be able to beam Universal-made programs
to almost every TV set in America. "The big question is, what now" in terms
of actual programming, Diller said. "Anything we do will have to have flair
and verve and be of the moment."

Title: Diller and Universal Team Up to Build Television Titan
Source: Wall Street Journal (B1, B6)
http://wsj.com
Author: Eben Shapiro and Bruce Orwall
Issue: Mergers
Description: Barry Diller, who formerly ran Paramount Pictures and launched
the FOX network, has just struck a deal with the Seagram Co., parent of
Universal Studios Inc. The agreement will merge a large chunk of Seagram
Co.s Universal Television operations, including the USA network, with
Diller's company, the Home Shopping Network parent HSN Inc. Universal will
get a 45 percent stake in the new company and $1.2 billion in cash from HSN.
This merger will create what Mr. Diller hopes will be a major TV network.
Mr. Diller will run the new venture.

** Wiring Regulations **

Title: Inside Wiring Rule Changes Open Doors For MVPDs
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Wiring Regulations
Description: The FCC opened its doors last week for multichannel video
programming distributors (MVPD). "The FCC amended its cable inside wiring
rules to allow new entrants greater access to multi-dwelling buildings.
Competition has been hindered by disputes over control and use of the wires
necessary to reach each unit in a building." The FCC says that its decision
is meant to "promote choice, innovation and price competition in the video
programming industry."
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