June 1997

Communications-related Headlines for 6/30/97

Let It Be

The SBC Deal Shelved, What Tack For AT&T

A Father, A Friend, a Seller of Cyberporn

On the Net: Autistics, freed from face-to-face encounters, are communicating in
cyberspace

New Service Skims 150 Newspapers for Its Users

Microsoft Wants Information To Travel the Real Highway

Lowell Paxson has a dream: to start yet another television network

Digital 'Watermarks' Assert Internet Copyright

Homosexual imagery is spreading from print campaigns to
general-interest TV programming

AT&T-SBC Plan Is Ended By Phone Call

Germany's Telekom Slows Its Spending

FCC to Issue the Long-Sought License For Ellipso's Satellite Phone
Service

Microsoft Adds A 'Firewall' To Next Server

NBC Is Expected To Provide Viewers With Digital Data

Ticketmaster and Excite In Pact for Internet Sales

FTC Asked to Probe Microsoft Compliance With Antitrust Pact

News Corp. Unit Slashes Number Of Book Projects

Clinton Backs No New Taxes On Internet

In Computer Age, Postal Service Needs More Checks in the Mail

Interesting Times at the FCC
*********************************************
Title: Let It Be
Source: New York Times http://www.nytimes.com/(D1)
Author: John Broder
Issue: Internet Regulation
Description: Ira Magaziner, the architect of President' Clinton's failed
national health care proposal, has spent the past 15 months studying the
Global Information Infrastructure, the Internet. In a White House report due
for release this week, Magaziner's answer for most Internet-related problems
-- from copyright to pornography -- is to do "Not much." Magaziner believes
the Internet community should be allowed to flourish free of Government
interference and with industry self-regulation.

Title: The SBC Deal Shelved, What Tack For AT&T
Source: New York Times http://www.nytimes.com/(D1)
Author: Mark Landler
Issue: Mergers
Description: On Fiday, AT&T and SBC broke off merger talks. "This was a Hail
Mary pass," a Merrill Lynch analyst said. "AT&T was attempting to declare
peace on one front so it could defend all its other fronts." AT&T must now
regroup and figure out how it will compete for local customer as every other
telecommunications company seeks to gain its long distance customers.

Title: A Father, A Friend, a Seller of Cyberporn
Source: New York Times http://www.nytimes.com/(D1)
Author: Seth Schiesel
Issue: Internet Content
Description: The Communications Decency Act, struck down by the Supreme
Court last week, was supposed to make doing business harder for the likes of
Joe Warshowsky who runs Video-fantasy.com, a live stripshow on the Internet.
But Warshowsky says that minors can't afford his $6/hr service nor can they
access anything before their identity is confirmed via a phone call.

Title: On the Net: Autistics, freed from face-to-face encounters, are
communicating in
cyberspace
Source: New York Times http://www.nytimes.com/(D6)
Author: Harvey Blume
Issue: Disability
Description: In Technology column, Blume looks at how autistics are using
the Internet to do what they are supposed to be unable to do --
communicate.See Independent Living at http://www.inlv.demon.nl/ and On the
Same Page http://amug.org/~a203/index.html.

Title: New Service Skims 150 Newspapers for Its Users
Source: New York Times http://www.nytimes.com/(D8)
Author: Iver Peterson
Issue: Newspapers/Internet
Description: "Everything that's news in any town in America originates in a
newspaper, but a huge percentage of it goes to waste because 99% of the rest
of the country never gets to see it," says Newsworks' editor in chief, John
Papanek. Newsworks http://www.newsworks.com sifts, organizes, and links to
stories in 150 newspapers around the country. The new site hopes to break
into the Web news market currently dominated by Yahoo, Netscape, Microsoft,
and about a dozen large newspapers. These sites have about 80% of the
advertising revenue on the Internet.

Title: Microsoft Wants Information To Travel the Real Highway
Source: New York Times http://www.nytimes.com/(D9)
Author: Keith Bradsher
Issue: Info Tech
Description: Microsoft is developing tools so people can use computers in
their cars using cellular phone connections. The auto industry has safety
concerns, especially since cell phone users have higher accident rates, but
Microsoft believes it can handle safety problems by making car computers
with speech recognition.

Title: Lowell Paxson has a dream: to start yet another television network
Source: New York Times http://www.nytimes.com/ (D10)
Author: Geraldine Fabrikant
Issue: TV
Description: Lowell Paxon owns 55 TV stations, started the interactive home
shopping business in 1977, and wants to be, he explains, "the United States
Post Office of Eyeballs" by creating a new television network. In a sense,
Paxton already has a network since he can reach 58 percent of the TV
audience, but he does not produce programming. Paxton is going about
network creation intentionally backwards by, as one analyst put it, putting
down the railway tracks and hoping that someone will ride over it because he
bought stations first. Paxton has a hard goal -- WB and Paramount are two
new networks and after two years neither of them are making a profit. The
article has a chart documenting the market penetration, hours of
programming, etc. of the major networks.

Title: Digital 'Watermarks' Assert Internet Copyright
Source: New York Times http://www.nytimes.com/ (D11)
Author: Andrew Ross Sorkin
Issue: Copyright
Description: To cut down on copyright infringement, in other words to
cut down on people pirating its online pictures of women who aren't wearing
much, Playboy is going to start putting a "digital watermark" on its images.
The watermark lets Playboy "encode ownership information into the photograph
and will also let the magazine track unauthorized copies of images on the
Internet." Hooters is investigating a similar electronic marking process
(not true).

Title: Homosexual imagery is spreading from print campaigns to general-interest
TV programming
Source: New York Times http://www.nytimes.com/ (D12)
Author: Stuart Elliot
Issue: Advertising
Description: Commercials on broadcast and cable are using homosexual
imagery to market to gays and lesbians as well as general audiences. Ads
use same sex couples, cross-dressing, (the "seeing a lot of people you never
expected to see in women's clothes" ads as one analyst put it), and
transexuality. A lot of ads with same sex couples are referred to as
"gay-vague" -- when it's not certain what the relationship is between the
two people. The ad for Volkswagen with two young men roaming around the
country in a Golf falls into this category. This ad has been incredibly
popular.

Title: AT&T-SBC Plan Is Ended By Phone Call
Source: Wall Street Journal http://www.wsj.com/ (A3)
Author: Leslie Cauley and John J. Keller
Issue: Mergers
Description: SBC told AT&T that it wanted to end merger talks.
Discussions had not gone smoothly and typical of the negotiations, the two
companies could not even agree on the exact reasons the talks were broken
off. SBC representatives were angered by AT&T Chairman Allen's comments
about the Bells' reticence to open local markets.

Title: Germany's Telekom Slows Its Spending
Source: Wall Street Journal http://www.wsj.com/ (A11)
Author: Silvia Ascarelli
Issue: International
Description: Last year Germany's main phone company, Deutsche Telekom, was
making lots of deals to prepare itself for the competition to conquer the
international phone market. This year Telekom has scaled back its spending,
but not its ambitions. The company is now looking for fewer, but larger
deals. The government is also going to sell more shares of Telekom to
raise $14.5 billion.

Title: FCC to Issue the Long-Sought License For Ellipso's Satellite Phone
Service
Source: Wall Street Journal http://www.wsj.com/ (B6)
Author: Jeff Cole and Bryan Gruley
Issue: Satellite
Description: The FCC will issue a license for a global satellite phone
network, called Ellipso, to Mobile Communications Holdings, Inc. Ellipso
will crowd the market of companies providing "go-anywhere global service
mobile phones."

Title: Microsoft Adds A 'Firewall' To Next Server
Source: Wall Street Journal http://www.wsj.com/ (B6)
Author: Dean Takahashi
Issue: Security
Description: Microsoft is going to include Internet "firewall" software in
its next server. A firewall is a security software system that "connects a
private company's network with the public Internet without compromising
security." Microsoft's decision to enter the firewall market will be bad
news for many smaller companies already specializing in this type of software.

Title: NBC Is Expected To Provide Viewers With Digital Data
Source: Wall Street Journal http://www.wsj.com/ (B8)
Author: Kyle Pope
Issue: Digital TV
Description: NBC is going to be the first big American network to allow
viewers to "access digital information about programs as they are being
aired." Today Show watchers could order recipes demonstrated on the show.
Olympic watchers could demand stats on athletes and viewers could request
coupons for products in advertisements. This Fall, about 800,000 viewers who
have special set top boxes will be able to try out the service.

Title: Ticketmaster and Excite In Pact for Internet Sales
Source: Wall Street Journal http://www.wsj.com/ (B8)
Author: WSJ Staff Reporter
Issue: Electronic Commerce
Description: Ticketmaster sued Microsoft in April because Microsoft's
Sidewalk site linked to Ticketmaster without permission. Ticketmaster just
announced that it has made a deal to sell tickets through the Internet
search service Excite. Ticketmaster and Excite will share profits.
Ticketmaster also agreed to link with CitySearch, the biggest competitor to
Microsoft's Sidewalk.

Title: FTC Asked to Probe Microsoft Compliance With Antitrust Pact
Source: Wall Street Journal http://www.wsj.com/ (B12)
Author: WSJ Staff Reporter
Issue: Microsoft/Antitrust
Description: Senators Burns (R-Montana), Stevens (R-Alaska), and Thomas
(R-Wyoming) have asked the Federal Trade Commission to investigate claims
that Microsoft has violated the terms of a 1994 antitrust settlement. The
letter the senators sent to the FTC did not outline who made the allegations
or what the supposed violations were. Microsoft has been under
investigation for various antitrust issues for most of the 90s.

Title: News Corp. Unit Slashes Number Of Book Projects
Source: Wall Street Journal http://www.wsj.com/ (B12B)
Author: G. Bruce Knecht
Issue: Publishing
Description: HarperCollins, owned by News Corp., is canceling more than
100 book projects it commissioned. HarperCollins says it canceled
commissions because authors missed deadlines or it decided it couldn't
publish certain projects "well." Analysts also believe that company's
recent financial troubles made it cancel a larger number of books than usual.

Title: Clinton Backs No New Taxes On Internet
Source: Washington Post http://www.washingtonpost.com/ (A1)
Author: Ravjiv Chandrasekaran
Issue: Internet Regulation
Description: The Clinton Administration will not regulate or tax
electronic commerce conducted over the Internet. The Administration's
reasoning will be available in a report, entitled "A Framework for Global
Electronic Commerce," to be released tomorrow. The decision may put the
Administration at odds with state and local governments who have been
positive about special Internet taxes. The Administration will still have
an active role in children's privacy and encryption export.

Title: In Computer Age, Postal Service Needs More Checks in the Mail
Source: Washington Post http://www.washingtonpost.com/ (A11)
Author: Bill McAllister
Issue: Electronic Commerce
Description: The Post Office is losing money because more people are paying
bills electronically and not using stamps and the mail system. The office's
share of the "correspondence and transaction" market has dropped 18
percentage points since 1988. Article has chart with post office revenue
over time.

At the FCC http://www.fcc.gov
Remarks Commissioner Rachelle B. Chong, Bridging Digital Technologies and
Regulatory Paradigms, Berkeley, California, June 27, 1997 "Interesting Times
at the FCC"
*********

Communications-related Headlines for 6/27/97

Court Protects Speech On Internet

HaperCollins Cancels Books In Unusual Step for Industry

For Parents, a New and Vexing Burden

Clinton Readies New Approach on Smut

In talks Over TV Ratings, Neither Side Expects a Deal Soon

Money for Arts and Land Purchase Rejected

AT&T-SBC Merger Plans Are Crumbling

High Court Strikes Down Internet Smut Law

1st Amendment Applies To Internet, Justices Say

Smut Ruling Ratifies the Internet's Founding Principles

Statute "Silences Some Speakers...Entitled to Constitutional Protection"

Yes, the Net is Speech

Long-Distance Field Barred To Bell Firm

GTE FILES UNIVERSAL SERVICE CASE IN 8TH CIRCUIT

Commission Adopts FY 1997 Regulatory Fee Schedule.

Commission Denies SBC Application to Provide Long Distance Telephone Service
in the State of Oklahoma
*********************************************
Title: Court Protects Speech On Internet
Source: New York Times http://www.nytimes.com/(A1)
Author: Linda Greenhouse
Issue: First Amendment/Free Speech
Description: "Content on the Internet is as diverse as human thought,"
Justice Paul Stevens said yesterday as the Supreme Court ruled that speech
on the world wide computer system is entitled to the highest level of First
Amendment protection similar to that of books and newspapers. [for more info
see URL http://www.ciec.org] [The NYT also published excerpts from the
ruling on page A20]

Title: HaperCollins Cancels Books In Unusual Step for Industry
Source: New York Times http://www.nytimes.com/(A1)
Author: Doreen Carvajal
Issue: Publishing
Description: HarperCollins has begun an effort to downsize its book lists,
canceling at least 100 titles. "it's a way of trying to make sense out of
the business," said chief executive Anthea Disney. "In all honesty, I don't
want to publish books we won't get behind and publish well." HaperCollins is
the publishing unit of Rupert Murdoch's News Corporation.

Title: For Parents, a New and Vexing Burden
Source: New York Times http://www.nytimes.com/(A21)
Author: Amy Harmon
Issue: Content/Internet
Description: The Supreme Court's ruling on the Communications Decency Act
places the responsibility of children's online activities on parents. "And
while that may square with the First Amendment and free speech, it leaves
many already beleaguered parents uneasily sizing up a new and unfamiliar
burden." Article suggests that parents 1) sit with children when they are
online, 2) install filtering software, or 3) use one of the major online
services providers -- they all offer parental control options for no
additional cost.

Title: Clinton Readies New Approach on Smut
Source: New York Times http://www.nytimes.com/(A21)
Author: John Broder
Issue: Content/Internet
Description: President Clinton will convene a meeting on July 1 to seek a
solution to the problem of online pornography. The meeting will include
industry executives, teachers, librarians, and groups representing parents.
President Clinton supports new filtering technology, parental supervision of
online use, and stronger self-regulation by the online industry.

Title: In talks Over TV Ratings, Neither Side Expects a Deal Soon
Source: New York Times http://www.nytimes.com/ (A22)
Author: Lawrie Mifflin
Issue: V-Chip
Description: Negotiators from the broadcast industry and parents' groups
have reached an impasse they probably wouldn't be solved until after
Congress' 4th of July recess, if at all. The broadcast industry has conceded
to add content warnings to the current TV ratings system, but, in return,
broadcasters want a three year moratorium on legislation regarding the
ratings system.

Title: Money for Arts and Land Purchase Rejected
Source: New York Times http://www.nytimes.com/(A23)
Author: Jerry Gray
Issue: Arts/Budget Issues
Description: Republicans on the House Appropriations Committee voted to kill
the National Endowment of the Arts. "For some of the hard-core and
right-wing conservatives, the shutdown of the NEA has become a litmus test
as to whether the Republican leaders in the House are still devotees to some
of the conservative causes," said Rep Michael Forbes (R-NY) who joined
Democrats in an attempt to restore full money for the arts endowment. The
Appropriations Committee Chairman, Rep Robert Livingston (R-LA), said "This
is the expropriation of taxpayers' dollars to be used for elitist purposes.
The arts should be financed, but they should be financed privately."

Title: AT&T-SBC Merger Plans Are Crumbling
Source: Wall Street Journal http://www.wsj.com/ (A3)
Author: John J. Keller and Leslie Cauley
Issue: Mergers
Description: Talks between SBC Communications and AT&T about
merging are falling apart because of concerns about opposition from
Washington, potential legal problems getting SBC into the
long-distance business, disarray at AT&T, and irreconcilable differences
in the crunchy vs creamy peanut butter debate. Yesterday, the FCC said that
SBC was not allowed to enter the long distance market in Oklahoma because it
had not sufficiently opened its local market to competition.

Title: High Court Strikes Down Internet Smut Law
Source: Wall Street Journal http://www.wsj.com/ (B1)
Author: Edward Felsenthal and Jared Sandberg
Issue: First Amendment/Free Speech
Description: The Supreme Court struck down the Communications Decency Act
yesterday in a 7-2 decision and praised the "democratic potential of
cyberspace." Jerry Berman of the Center for Democracy and Technology said
"The Supreme Court has written the First Amendment for the 21st Century."
The Communications Decency Act, a provision in the 1996 Telecommunications
Act, declared it illegal to transmit "indecent" material to minors.
Internet service providers were concerned that they would be held
responsible for what their subscribers were sending around on the Internet.
A big issue in the case was whether the Internet would be treated like print
materials or broadcast television. Courts have not allowed many
restrictions on print materials on First Amendment grounds. Greater
regulation is allowed with broadcasting since spectrum is a limited public
asset that must be divided up to prevent chaos. Chief Justice Rehnquist
and Justice O'Connor agreed with most of the court's decision, but wanted
to uphold the part of the CDA that prohibits adults from knowingly sending
electronic indecent materials to a "specific" youth.

Title: 1st Amendment Applies To Internet, Justices Say
Source: Washington Post http://www.washingtonpost.com/ (A1)
Author: John Schwartz and Joan Biskupic
Issue: First Amendment/Free Speech
Description: Yesterday the Supreme Court in a 7-2 decision found the
Communications Decency Act to be unconstitutional and that "constitutional
free speech protections apply just as much to online systems as they do to
books and newspapers." Justice John Paul Stevens wrote that, "The law
threatens to torch a large segment of the Internet community." Stevens also
wrote that "It is true that we have repeatedly recognized the governmental
interest in protecting children from harmful materials...But that interest
does not justify an unnecessarily broad suppression of speech addressed to
adults."

Title: Smut Ruling Ratifies the Internet's Founding Principles
Source: Washington Post http://www.washingtonpost.com/ (A20)
Author: Rajiv Chandrasekaran and Elizabeth Corcoran
Issue: First Amendment/Free Speech
Description: The Supreme Court's decision confirms the Internet's
"anything goes tradition. From its earliest days, those who built it saw it
as a new frontier of ideas, one in which they could explore new thoughts and
theories on a strong base of individual and academic freedom, without fear
of censorship from Washington." Now, the Internet community is a lot bigger
and more diverse than the original core groups of users. "In many new
information formats, sex has proved to be a powerful stimulant of expansion.
Not long after the first cameras were invented in the mid-19th century,
secret studios were photographing nudes. And the videocassette recorder got
a boost in sales in the mid-1980s from its ability to let people view sexual
films at home. It was the same with the Internet. Not too long after it
began, people were placing digital versions of sexual pictures on Internet
computers for others to see."

Title: Statute "Silences Some Speakers...Entitled to Constitutional
Protection"
Source: Washington Post http://www.washingtonpost.com/ (A20)
Author: Supreme Court
Issue: First Amendment/Free Speech
Description: Excerpts from Supreme Court decision written by Justice John
Paul Stevens.

Title: Yes, the Net is Speech
Source: Washington Post http://www.washingtonpost.com/ (A24)
Author: WP Editorial Staff
Issue: First Amendment/Free Speech
Description: Less than an hour after the Supreme Court decision, Internet
users could read the full text of the decision online. "Such is the reach
of the medium that now, thanks to the court's decision, has been freed to
grow and develop as buoyantly in the future as it has up till now -- freed,
that is, from the threatened constraints of the so-called decency law."
The CDA, if upheld, would have seriously hobbled free speech on the net. The
Court made clear that protecting kids from online smut is important, but
can't be used "as an excuse to muzzle this potential for vastly increased
communication and interaction."

Title: Long-Distance Field Barred To Bell Firm
Source: Washington Post http://www.washingtonpost.com/ (G2)
Author: Reuter
Issue: Phone Regulation
Description: Yesterday, the FCC rejected SBC's application to enter the long
distance market in Oklahoma. The Federal phone regulators decided that
SBC, based in San Antonio, TX, hadn't met one of the requirements to enter
the long distance market -- opening its local phone market to competition.
Since the break up of AT&T's monopoly in 1984, Baby Bells have not been
allowed into the long distance market, but the Telecommunications Act of
1996 made it ok as long as the Baby Bells met requirements outlined in a
14-point checklist. Last month the Justice Department recommended that SBC's
bid be rejected.

Title: GTE FILES UNIVERSAL SERVICE CASE IN 8TH CIRCUIT
Source: Telecom AM http://www.telecommunications.com/am/
Issue: Universal Service
Description: "GTE is challenging the FCC's universal service order because
that order fails to ensure that quality services will be provided at
affordable prices to customers in rural and poor areas," said William Barr,
GTE's executive vice president and general counsel. GTE believes that the
FCC's order does not provide sufficient support in high-cost areas."Far from
being competitively neutral, the FCC order invites cherry-picking and
threatens to undermine affordable phone service," Barr said.

At the FCC http://www.fcc.gov
Commission Adopts FY 1997 Regulatory Fee Schedule.

Commission Denies SBC Application to Provide Long Distance Telephone Service
in the State of Oklahoma (CC Docket No. 97-121).
*********
Happy sweltering and have a good weekend.

Communications-related Headlines for 6/26/97

Supreme Court Rules CDA Unconstitutional

Justice Dept. Deals Setback To Ameritech In Michigan

Ameritech's Long-Distance Application Draws Rebuff From Justice Department

Wireless Bidders Ask to Restructure Debt

TV Ratings Talks Stall Over Threat of Hill Action

Non-Accounting Safeguards

Forum to Promote Standards for Telehealth Equipment
*********************************************
Supreme Court Rules CDA Unconstitutional see http://www.ciec.org/
"The (Communications Decency Act) is a content-based regulation of speech.
The vagueness of such a regulation raises special First Amendment concerns
because of its obvious chilling effect on free speech."
-- Justice John Paul Stevens, writing for the majority

Title: Justice Dept. Deals Setback To Ameritech In Michigan
Source: New York Times http://www.nytimes.com/(D1)
Author: Mark Landler
Issue: Phone Regulation
Description: The Justice Department recommended that Baby Bell Ameritech not
be allowed to enter the long distance market in Michigan where it provides
local service. Although Joel Klein, chief of the antitrust division, said
that "local competition is beginning to take root in Michigan," the
recommendation to the Federal Communications Commission said that Ameritech
has failed to open its existing market. The FCC will make the final decision
on the matter by August 19.

Title: Ameritech's Long-Distance Application Draws Rebuff From Justice
Department
Source: Wall Street Journal http://www.wsj.com/ (B8)
Author: John R. Wilke
Issue: Phone Regulation
Description: The Justice Department told Chicago-based Ameritech
yesterday that it couldn't enter the long-distance market in Michigan
because it hasn't
sufficiently opened its local market to competition. This decision comes at
the same time Congress is battling with the Justice Department about how to
read the Telecommunications Act of 1996. Joel Klein is the acting head of
the anti-trust division of the Justice Department. Rep. Thomas Bliley
(R-VA) thinks that Klein, in an earlier decision, set "a lower threshold for
Bell entry into long distance than Congress intended." And Senator Bob
Kerrey (D-Neb) will prevent a vote on Klein to become the head of the
anti-trust decision unless Klein's position on long distance is made more
clear.

Title: Wireless Bidders Ask to Restructure Debt
Source: Wall Street Journal http://www.wsj.com/ (A3)
Author: Bryan Gruley and Quentin Hardy
Issue: Spectrum
Description: Several wireless companies stated that they can't pay the
millions of dollars they bid to receive FCC spectrum licenses and may have
to default on their payments. The companies want the federal government to
restructure their debt by postponing any payments until 8 years from now or
cut the amount they owe in half. However the FCC decides to respond, it is
unlikely the government will collect the $10.2 billion dollars it
theoretically raised with the auctions.

Title: TV Ratings Talks Stall Over Threat of Hill Action
Source: Washington Post http://www.washingtonpost.com/ (E1)
Author: Paul Farhi
Issue: V-Chip
Description: Representatives from the TV industry and parent advocacy
groups (the PTA, the NEA, and the American Medical Association) have
stalemated in their efforts to revise the TV ratings system. The groups
have reached agreement on the basic ratings to be used. "Now, however, a
key side issue -- how long the industry will be exempt from federal
legislation that would force ratings changes -- is threatening to scuttle a
voluntary solution." The new ratings system would include the content
indicators S, V, L, D (for suggestive Dialogue) and FV (for fantasy violence
for the Y-7 category). TV and cable representatives want to be protected
from any legislation that would affect their industry for three years. The
parent groups are unwilling to agree to that.

At the FCC http://www.fcc.gov
FCC releases Second Order on Reconsideration on Implementation of the
Non-Accounting Safeguards of Sections 271 and 272 of the Communications Act
of 1934, as Amended (CC Docket No. 96-149, FCC 97-222).

Forum to Promote Standards for Telehealth Equipment to be Held July 17
*********

Communications-related Headlines for 6/25/97

Lobbyists for TV Angle to Elude Rules to Return Free Channels

TV Ratings Are Mired In Demand By Industry

Another Broadcast Giveaway

British Digital TV Licenses Are Awarded

Netscape and Microsoft Are Cleared on Exports

Software Moguls Suddenly Compete To Be Nice Guys

Netscape, Microsoft Get Export Permits For Software With Strong Encryption

Nonprofit Group Will Inherit NSF's IP Number Duties

Buyer Sought for District Cablevision

*********************************************
Title: Lobbyists for TV Angle to Elude Rules to Return Free Channels
Source: New York Times (A1)
Author: Joel Brinkley
Issue: Digital TV
Description: Each of the country's 1600 TV stations were loaned a second
channel for the transition to digital television. In response to criticism
that stations were getting a "multi-billion dollar gift of public property,"
the FCC passed a rule demanding that the TV stations return their old analog
channel by 2006 so that this spectrum could be auctioned off. "But now
lobbyists for the television broadcasting industry have managed to work two
provisions into Senate and House budget bills that could allow
broadcasters to evade the most significant commitments they accepted in
exchange for the additional channels." One provision lets broadcasters keep
the channels past 2006 and the other extends the deadline by which stations
have to be
showing digital programming. Reed Hundt contemplated what would happen if
these two provisions became law. Hundt said, "what a result that would be:
Give the digital television licenses to broadcasters so no competitors could
get them; tell broadcasters they don't really have to build the digital
television systems and then tell broadcasters their reward for not using
this incredibly valuable public property is that they never have to give back
the analog licenses." Broadcasters claim that extended deadlines ensure
that all consumers will have purchased the necessary equipment to receive
digital programming and will not be left behind.

Title: TV Ratings Are Mired In Demand By Industry
Source: New York Times (A10)
Author: Lawrie Mifflin
Issue: V-Chip
Description: Negotiations between parent-advocacy groups and the
television industry on revising the fledgling TV rating system stalled
yesterday around TV representatives' position that "the groups and
Congressional leaders must pledge to keep the issues of violence and sex on
television out of the political arena for at least two years." Earlier in
the day the groups had been so close to an agreement that press conferences
had been scheduled. Negotiators had agreed to add the S,V,L ratings as
well as a D for suggestive dialogue and an FV for fantasy violence for the
Y-7 (must be seven to watch, or if you're a dog, one year) category.

Title: Another Broadcast Giveaway
Source: New York Times (A26)
Author: NYT Editorial Staff
Issue: Digital Television
Description: Now that broadcasters have their second frequency for free,
which they lobbied so hard to get, they are changing their tune about what
they intend to do with the licenses. They are not planning to offer the
highest quality type of programming and they don't want to return their old
spectrum anytime in the near future. There are two provisions on these
issues in Congress right now. "Congress was wrong to give away valuable
airwaves. It should not now compound the mistake by perpetuating it."

Title: British Digital TV Licenses Are Awarded
Source: New York Times (D3)
Author: Bloomberg News
Issue: Digital Television
Description: Britain awarded three licenses for ground based digital
television broadcasts.

Title: Netscape and Microsoft Are Cleared on Exports
Source: New York Times (D8)
Author: John Markoff
Issue: Encryption
Description: The Commerce Department gave Microsoft and Netscape the OK
to "export more secure versions of their software to banking customers."
"This is a positive step, but it does not resolve the large question of
whether we will be able to sell products based on strong cryptography,"
stated a lawyer from Netscape. The US government has been imposing tight
limits on what types of encryption programs US companies could export
because of the government's security concerns.

Title: Software Moguls Suddenly Compete To Be Nice Guys
Source: Wall Street Journal (A3)
Author: --
Issue: Libraries/Philanthropy
Description: Bill Gates pledged $200 million of his personal fortune to
help public libraries get online. Now a day later, Lawrence Ellison,
Chairman of Oracle, has announced that his company will give $100 million to
schools to "place inexpensive computing devices called network computers on
every child's desk." "The unusually large donations appear to be
coincidental examples of a new wave of corporate giving. Though both are
setting up new nonprofit foundations, Mr. Gates and Mr. Ellison are
stressing projects that bring, quick measurable results, and can also bring
business benefits to contributors."

Title: Netscape, Microsoft Get Export Permits For Software With Strong
Encryption
Source: Wall Street Journal (B6)
Author: Dean Takahashi and David Bank
Issue: Encryption
Description: The Commerce Department will allow Microsoft and Netscape to
export Internet banking programs with more powerful encryption codes (128
bits) than have been previously allowed. Therefore, the corporations don't
have to maintain two different Internet software programs -- one for use in
the US and one for international use. "More significantly, it puts them on
an even playing field with foreign competitors, some of whom have won
customers simply by adding stronger encryption to U.S.-made products."
Financial institutions don't have to provide the government with "key
recovery" plans as other organizations are being asked to do.

Title: Nonprofit Group Will Inherit NSF's IP Number Duties
Source: Wall Street Journal (B6)
Author: Rebecca Quick
Issue: Internet
Description: The National Science Foundation will turn over the
responsibility for Internet Protocol numbers to a nonprofit coordinating
group called the American Registry for Internet Numbers. Every Internet
address has two identifiers. While people use domain names to find Internet
addresses, computers find information with the IP numbers.

Title: Buyer Sought for District Cablevision
Source: Washington Post (C11)
Author: Paul Farhi
Issue: Cable
Description: Tele-Communications Inc. (TCI) is seeking a buyer or a
partner to handle the management for District Cablevision, DC's cable
provider. TCI has been losing money on the system and has received many
complaints about quality of service from customers. TCI is trimming down on
the cable stations it owns or runs directly.

*********

Communications-related Headlines for 6/24/97

Or You Could Just Read a Book

Unlikely Warrior Leads the Charge for a Simpler PC

Gates to aid Libraries, in Footsteps Of Carnegie

UtiliCorp and Peco, Aided by AT&T, To Launch One-Step Utility Service

Fox-TCI Plan Creates First Serious Rival to ESPN

FCC Is Prepared to Reject SBC's Bid To Offer Long-Distance Phone Service

TCI Is Closing Deals With Time Warner, Others to Shed Subscribers, Slash
Debt

Microsoft's Gates Plans $200 Million Gift to Libraries

A Sporting Chance To Be No. 1

*********************************************
Title: Or You Could Just Read a Book
Source: New York Times (A29)
Author: Rob Long
Issue: V-Chip
Description: In his op-ed, Long, a TV writer and producer, suggests a more
useful series of television ratings such as TV-NoWay "Program is set in an
apartment too spacious and hip for any of the characters to afford in real
life," TV-Woo "At filming, studio audience was encouraged to shout 'woo!'
during moments with even a hint of romantic undertone," and TV-Ug? "Male
lead is a balding, unattractive, schmo-like creature but, inexplicably,
strongly appeals to women of all ages."

Title: Unlikely Warrior Leads the Charge for a Simpler PC
Source: New York Times (C1)
Author: James Gorman
Issue: Info Tech
Description: Dr. Michael L. Dertouzos, the head of MIT's computer labs,
thinks that personal computers need a lot of improving. He details what's
wrong in his new book "What Will Be" published by Harper Collins. He
thinks PCs have too many features, too few of which we actually need, are
too complicated to understand, and often end up in charge of the user.

Title: Gates to aid Libraries, in Footsteps Of Carnegie
Source: New York Times (D1)
Author: Steve Lohr
Issue: Libraries/Philanthropy
Description: Bill Gates of Microsoft is planning to create The Gates
Library Foundation, which will spend $200 million over five years to help
public libraries, primarily those in low-income areas, gain Internet access.
Gates is being likened to Andrew Carnegie, an earlier philanthropist who
helped build more than 2,500 libraries. Critics will accuse Gates of being
self-serving by using this initiative to promote Microsoft products. The
library foundation is distinctive from other library support programs
because of its narrow focus and marks one of Gate's biggest philanthropic
investments. "This foundation is his first big sustained effort, something
that seeks to make a lasting change that could affect millions of people,"
stated Andrew Blau of the Benton Foundation, an organization made famous by
its brilliant, effervescent, humble, up with people daily headlines
service. This effort will be based upon Microsoft's commitment to the
Libraries Online! program, which provided training and financial support for
Internet connections to a number of libraries.

Title: UtiliCorp and Peco, Aided by AT&T, To Launch One-Step Utility Service
Source: Wall Street Journal (A3)
Author: Benjamin A. Holden
Issue: Mergers
Description: Peco and UtiliCorp, two utility companies, are going to
start, with support from AT&T, a new company that would let customers get
natural gas, phone, electric, Internet home security packages, and dog
walking services all in one package.

Title: Fox-TCI Plan Creates First Serious Rival to ESPN
Source: Wall Street Journal (B8)
Author: John Lippman
Issue: Mergers
Description: News Corp. and TCI have agreed to purchase a 40% stake in
Rainbow Media Sports Holdings Inc., which Cablevision Systems Corp. owns 75%
of, for $850 million. This purchase will allow News Corp and TCI to
challenge ESPN with a national sports network. ESPN is owned by Disney.
Murdoch is also currently trying to buy the Los Angeles Dodgers. The new
TCI-News Corp. creation will "sell national advertising by cobbling together
regional sports channels under one banner called Fox Sports Net. Though the
regional channels would show their usual local programming such as news and
highlights shows could be shown on all the regional networks
simultaneously." "The new venture would combine nine regional sports
channels jointly operated by News Corp. and TCI with eight regional sports
channels operated by Rainbow."

Title: Software Developer To Unveil Coupons For Use on Internet
Source: Wall Street Journal (B13)
Author: Jon G. Auerbach
Issue: Info Tech
Description: Open Market, a software developer company, is going to
release technology to create and send digital coupons. This may help
Internet marketers attract customers. The Blue Light Special has now come
online because Internet sellers could have sales. PointCast and Disney's
online store plan to use the technology. Analysts warn that Internet sales
are still too weak to even need coupons.

Title: FCC Is Prepared to Reject SBC's Bid To Offer Long-Distance Phone Service
Source: Wall Street Journal (B13)
Author: Bryan Gruley
Issue: Phone Regulation
Description: FCC Staffers are ready to reject SBC's proposal to provide long
distance phone service in Oklahoma. The FCC is skeptical that SBC has
really opened its local market for competition. SBC argues that it has
deals with 16 rival phone companies in Oklahoma, including Brooks Fiber
Properties. "But FCC staffers are skeptical of those claims, partly because
Brooks has just four residential customers -- all Brooks employees taking
service on an experimental basis."

Title: TCI Is Closing Deals With Time Warner, Others to Shed Subscribers,
Slash Debt
Source: Wall Street Journal (B14)
Author: Mark Robichaux
Issue: Cable
Description: TCI is close to finishing a deal with Time Warner and other
companies that will let TCI take off 800,000 subscribers and $1.1 billion in
debt. TCI is going through a large restructuring phase. Head people at TCI
now feel that local is better and are trying to decentralize the big
company. There are plans to break the company's 14 million cable households
into groups of two to three million subscribers.

Title: Microsoft's Gates Plans $200 Million Gift to Libraries
Source: Washington Post (A1)
Author: Elizabeth Corcoran
Issue: Libraries/Philanthropy
Description: Bill Gates, chairman of Microsoft, and his wife, Melinda
French Gates, will announce today the creation of a foundation dedicated to
providing computers and Internet connections to the nation's public
libraries. Microsoft will supply $200 million of software to the foundation
to give away. The foundation will also focus on training and support for
library staff. Gates stated that his vision is that "people will take for
granted that you can walk into your local library, get the latest book and
sit-down at a computer." A former Microsoft executive, Patty Stonesifer,
will head the foundation. Philanthropist Andrew Carnegie's approach to
libraries appealed to Gates. Gates reflected that Carnegie said "Ok, books
are this empowering [thing] that people should have access to." Gates
believes that now the same should be true of personal computers. This
library initiative developed out of the smaller Libraries Online! project,
which provided $17 million in cash and software to public libraries. The
success of Libraries Online! -- many participating libraries reported that
people are waiting in line to use the computers -- inspired Gates. The
Federal Communications Commission also recently announced discounts for
libraries and schools to gain Internet access with the creation of a $2.25
billion per year fund.

Title: A Sporting Chance To Be No. 1
Source: Washington Post (C1)
Author: Paul Farhi and Leonard Shapiro
Issue: Media Mergers
Description: Rupert Murdoch's News Corp. is going to buy nine regional
cable sports channels and chunks of the New York Knicks, Rangers, Madison
Square Garden, and Mary Lou Retton (ok, not really Mary Lou) from Cablevision
Corporation. Then News Corp. and its partner, mongo cable company
Tele-Communications Inc., will have everything they need to create a
national sports cable network to challenge ESPN, which Murdoch has
apparently wanted to do for awhile. The new network will go by Fox Sports
Net and "will showcase national sports, as ESPN does now, but will also
maintain its regional flavor" by showing more local sporting events during
the day (West Bronx bridge players rejoice!). Murdoch and Malone of TCI
will have achieved a heretofore unseen amount of "vertical integration" --
"the ability to create programs and distribute them simultaneously." Don't
try this at home. News Corp. and TCI also recently partnered in a satellite
TV venture and News Corp. just bought some of the Family Channel, which TCI
owned a stake in. These types of corporate inbreeding "make a mockery of
[Washington's] efforts to impose public control over cable's market
dominance and monopoly pricing," stated Gene Kimmelman of the Consumers Union.

*********

Communications-related Headlines for 6/23/97

TV Sales Weaken on Fears New Sets Will Soon Be Obsolete

To Screen or Not to Screen: Libraries Confront Internet Access

Editors Urge Limits on Input By Advertisers

For Ma Bell, the Bell Tolled Long Ago

Notable and Quotable

Knight-Ridder Puts Five Newspapers On Selling Block

Magazine Editors Worried About Trend of Warning Advertisers About Articles

The Baptists' Passion Play

Online, On the Tube

Year of TV's dissed content

Baptist church targets Disney, ABC for boycott

Hill giving on channel giveback

TV ratings talks falter
*********************************************
Title: TV Sales Weaken on Fears New Sets Will Soon Be Obsolete
Source: New York Times (D1)
Author: Joel Brinkley
Issue: Digital TV
Description: "This industry has a tough balancing act ahead. We have to
preserve sales of a product we are simultaneously trying to replace," says a
Consumer Electronics Manufacturers Association economist. Sales of
conventional analog TV sets -- especially high-end, big screen TVs -- are
stagnating as consumers worry these sets will soon be obsolete and digital
TV sets will soon be available.

Title: To Screen or Not to Screen: Libraries Confront Internet Access
Source: New York Times (D1)
Author: Amy Harmon
Issue: Libraries/Internet
Description: Librarians across the country are testing Internet filtering
programs that will allow them to block children's access to pornographic
websites. Some find Net Nanny, Surfwatch and Cybersitter can't do the job
"without compromising the library's commitment to the free flow of ideas."

Title: Editors Urge Limits on Input By Advertisers
Source: New York Times (D7)
Author: Constance Hays
Issue: Journalism
Description: The American Society of Magazine Editors (ASME) is urging
editors to resist influence from advertisers over what appears in their
publications. The ASME board worries that some advertisers may mistake an
early warning as an open invitation to pressure the publisher or editor to
alter, or even kill, the article in question," the society wrote in a
statement last week. "We believe publishers should -- and will -- refuse to
bow to such pressure."

Title: For Ma Bell, the Bell Tolled Long Ago
Source: Wall Street Journal (A14)
Author: Robert E. Allen
Issue: Phone Regulation
Description: This op-ed by the chairman of AT&T argues that a merger
between AT&T and SBC would promote competition -- not re-establish Ma Bell.
"AT&T's position is clear: Local competition is the most important benefit
of the Telecommunications Act. No partnerships should be approved unless
they result in more competition in local service." Currently, local phone
companies are working hard to keep new entrants out of their markets, and a
merger between a local company and a long distance company could be the
thing that get's competition going.

Title: Notable and Quotable
Source: Wall Street Journal (A14)
Author: Text of interview of Reed Hundt by James Glassman
Issue: Universal Service
Description: Glassman questions Hundt on the subsidy system that will
support communications connections for schools and libraries. In the
interview, Glassman questioned the start of a new phone subsidy to raise
money to connect school and libraries.
In response, Hundt insisted that the fund will be small and that this is the
most equitable way to raise the needed capital.

Title: Knight-Ridder Puts Five Newspapers On Selling Block
Source: Wall Street Journal (B11)
Author: Martha Brannigan
Issue: Newspapers
Description: Knight-Ridder is going to sell the Press-Telegram in Long
Beach, CA; the Post-Tribune in Gary, Ind.; and a package of three papers
-- Boca Raton News, FL., Union-Recorder in Milledgeville, GA., and Newberry
Observer in South Carolina. Knight-Ridder is selling these papers because
they aren't pulling in enough profit. The company recently bought four
papers from Disney and has been revaluating its holdings since that purchase.

Title: Magazine Editors Worried About Trend of Warning Advertisers About
Articles
Source: Wall Street Journal (B11)
Author: G. Bruce Knecht
Issue: Journalism/Advertising
Description: The American Society of Magazine Editors is very concerned
about a trend among magazines to alert advertisers about the content of
articles in upcoming issues. The editor of Money magazine stated that he
"worries that some advertisers may mistake an early warning as an open
invitation to pressure the editor to alter or even kill the article in
question."

Title: The Baptists' Passion Play
Source: Washington Post (D2)
Author: Jonathan Yardley
Issue: Religion
Description: In his column, Yardley argues that though the Southern
Baptist Convention may be close minded about Disney, at least it's a
statement of belief. "By contrast, it is difficult to believe that Disney
believes in anything except money and the compelling need to make even more
of it..." In a related article on A9, many Southern Baptists attended
Walt Disney World this weekend.

Title: Online, On the Tube
Source: Washington Post (p.17)
Author: WP Staff
Issue: Advertising
Description: Viewers of DC TV station WDCA can get free email service and
access to Internet chat groups. When users register, they must provide a
certain amount of information including consumer preferences. The station
will use this consumer data to pull in advertisers who want specific
Internet audiences. The advertising revenue will finance the service

Title: Year of TV's dissed content
Source: Broadcasting&Cable (p.4)
Author: Chris McConnell
Issue: Television Regulation
Description: "It's been quite a lot like working in the emergency room
because you don't know what's going to come in next," says a lobbyist for
ABC. Broadcast lobbyists can't remember when Washington has been so bent on
using the TV schedule to help fix society's problems. The Media Access
Project's Andrew Schwartzman says they just don't have long memories; there
have been attempts to regulate TV content in every decade since the 50's.
Today's issues include "safe-harboring" violent shows, rating TV content for
use of the V-Chip, and curtailing alcohol advertising. Communications lawyer
Henry Geller predicts that many of the recent programming restriction
proposals would not hold up well in court: "There's no question that we're
in a period of raised eyebrows. I don't think the government wants to go to
the mat."

Title: Baptist church targets Disney, ABC for boycott
Source: Broadcasting&Cable (p.5)
Author: JS
Issue: Religion
Description: Hollywood's reaction to the Souther Baptist Convention's
decision to boycott The Walt Disney Company has been mixed. Some think it a
joke; other believe that it is time that someone took a stand against "the
pollution of the culture." Tom Wolzien, a Wall Street media analyst, says
the boycott will have little effect on the media giant.

Title: Hill giving on channel giveback
Source: Broadcasting&Cable (p.8)
Author: Paige Albiniak
Issue: Digital TV/Spectrum
Description: The House and Senate Commerce committees have forwarded budget
legislation that will allow broadcasters to keep their second channel of
spectrum for years to come. In an order adopted by the Federal
Communications Commission in May, broadcasters were to return one channel of
spectrum in 2006. The committees' bills adopted last week will allow
broadcasters to keep the additional channel until 95% of homes have digital
compatible TVs or convertor equipment.

Title: TV ratings talks falter
Source: Broadcasting&Cable
Author: Paige Albiniak
Issue: V-Chip
Description: After Vice President Gore voiced support for violence ratings
for television programming aimed at children seven years and older, the TV
industry -- broadcasters, cable programmers, and TV producers -- called off
negotiations. Ken Johnson, an aide to House Telecom Subcommittee Chairman
Billy Tauzin (R-LA) said, "the fact of the matter is that some members of
Congress as well as advocacy groups pushed the envelope too far."
*********

Communications-related Headlines for 6/20/97

A Seductive Drug Culture Flourishes on the Internet

TV Industry Freezes Talks on Revising Rating System

Radio Ads Sales Rise Amid Consolidation

Fox-TCI Venture Nears Pact to Buy 40% Of Cablevision Sports for $850 Million

U.S. Companies Seek to Influence Digital TV Format

Clinton Won't Back Disney Boycott

TV Program Ratings Talk Stalled

Hundt Declares Against An AT&T-SBC Merger

Senate Panel Approves Bill On Encryption

Hundt Declares Opposition to AT&T-Bell Company Mergers

Bell Atlantic Execs Seek To Ease FCC's Merger Concerns

Thinking About Why Some Communications Mergers are Unthinkable

Access Reform and X-Factor orders
*********************************************
Title: A Seductive Drug Culture Flourishes on the Internet
Source: New York Times (A1)
Author: Christopher S. Wren
Issue: Lifestyles!
Description: The Internet is chock full of information on how to create your
own drugs, what it's like to be high, the going rates for different drugs.
While there has been a vocal movement to keep children away from
pornographic Internet sites, there has not been as much concern about
keeping teens away from pro-drug sites. retired Gen. Barry R. McCaffrey,
Director of the White House Office of National Drug Control Policy, commented
about users (in every sense of the word) posting drug information, "The
question is not whether they have the right to put this kind of material out
there in the debate of ideas. The question is, Do parents, teachers, and
coaches and ministers understand that this information is out there?" One
online testimonial states that tripping on LSD "was one of the coolest
things I've ever done," almost as cool as debating universal service rates
for rural telcos.

Title: TV Industry Freezes Talks on Revising Rating System
Source: New York Times (A13)
Author: Lawrie Mifflin
Issue: V-Chip
Description: TV industry negotiators halted talks with advocacy groups
yesterday about revising the TV rating system because Vice President Al Gore
came out on the side of the advocacy groups. A statement from the National
Association of Broadcasters read "Due to the Vice President's unwarranted
intervention in the process, the N.A.B., the N.C.T.A [cable], and the
M.P.A.A [movies] have recessed talks on any changes in the TV ratings system
until further notice." People on the broadcasting side said Gore's comments
broke the parent advocacy groups' promises not to involve public officials
in the debate. Gore's press release encouraged negotiators to include the V,
S, L and T [like any good american the VP wants parents to be aware of
surreptitious bean by-products on TV posing as hamburgers, hotdogs, or
inner soles) ratings as well as to include indicators on the amount of
violence in Y-7 (need to be seven to watch) programs. How to evaluate
violence in cartoons or shows for young children has been a point of debate
in the negotiations.

Title: Radio Ads Sales Rise Amid Consolidation
Source: Wall Street Journal (B7)
Author: Lisa Brownlee
Issue: Radio
Description: Madison Avenue executives are worried that radio consolidation
will mean that a couple of companies will control ad rates in a given
market. "I think that you are seeing some rising prices" as well as " an
increase in the amount of advertising sold," says an industry analyst. Radio
advertising is sold at a cost of $6.50 per 1,000 listeners -- about half the
rate for television.

Title: Fox-TCI Venture Nears Pact to Buy 40% Of Cablevision Sports for $850
Million
Source: Wall Street Journal (B7)
Author: Mark Robichaux
Issue: Mergers
Description: A News Corp-TCI joint venture is close to buying a 40% share of
Cablevision Systems Corp's sports programming services including the Madison
Square Garden properties for $850 million.

Title: U.S. Companies Seek to Influence Digital TV Format
Source: Wall Street Journal (B7a)
Author: Jennifer Schenker
Issue: Digital TV
Description: Executives from Microsoft, Compaq, and Intel are in Europe
trying to influence the establishment of digital television standards that
are compatible with personal computers and interactive data services.
Broadcasters there fear that the PC industry will try to dominate the
broadcast industry.

Title: Clinton Won't Back Disney Boycott
Source: Washington Post (http://www.washingtonpost.com/) (A2)
Author: Peter Baker
Issue: Religion
Description: President Clinton, a Southern Baptist, said yesterday that he
will not abide by the vote of the Southern Baptist Convention to boycott
the Walt Disney Company.

Title: TV Program Ratings Talk Stalled
Source: Washington Post (http://www.washingtonpost.com/) (C5)
Author: Paul Farhi
Issue: V-Chip
Description: Vice President Gore endorsed several ideas favored by parents
organizations -- including adding content warnings S, V, and L -- and
television industry representatives abruptly broke off negotiations aimed
at revamping the system. "Due to the vice president's unwarranted
intervention in the process, the National Association of Broadcasters, the
National Cable Television Association, and the Motion Picture Association
of America have recessed talks...until further notice," the groups said in
a joint statement. [for more info see ]

Title: Hundt Declares Against An AT&T-SBC Merger
Source: Washington Post (http://www.washingtonpost.com/) (G1)
Author: Paul Farhi
Issue: Mergers
Description: Calling a potential union "unthinkable," Federal
Communications Chairman Reed Hundt declared open war on the rumored
AT&T-SBC merger. In an unusual announcement, Chairman Hundt spoke to a
rumored deal, but made clear that he thinks any potential AT&T-Baby Bell
merger would create a company whose market power could destroy competition
in the local and long distance markets.
[full text available at

Title: Senate Panel Approves Bill On Encryption
Source: Washington Post (http://www.washingtonpost.com/) (G2)
Author: Cassandra Burrell
Issue: Encryption/Privacy
Description: "Clearly, today's decision by the Senate Commerce Commission
is a step in the wrong direction," a statement by the Software Business
Alliance reads. The Committee approved a bill co-sponsored by Sen John
McCain (R-Ariz) and Sen John Kerrey (D-Mass) that would provide incentives
for developers of data-scrambling technology to provide law enforcement
officials with ways to crack the codes. Products without these "keys" would
face tougher review by the Department of Commerce.

Title: Hundt Declares Opposition to AT&T-Bell Company Mergers
Source: Telecommunications Reports Daily
Issue: Mergers
Description: Federal Communications Chairman Reed Hundt said that a merger
between AT&T and a Baby Bell is "unthinkable." Such a merger would far too
high a concentration of market share in the Bell companies local calling
area. AT&T Vice President Mark Rosenblum countered by saying "If a
partnership between a long distance company and a local RBOC can be
structured to
increase competition both in the BOC's home territory and in the states it
does not currently serve, then it ought to be considered." He added that the
Baby Bells have been dragging their feet in the process to opening their
markets to competition. Duane Ackerman of BellSouth counters that AT&T and
other long distance companies are backing off entry into local markets so
they can keep the Bells out of in-region long distance. "If AT&T is
successful in keeping us out of long distance, they have the best of both
worlds," Mr. Ackerman said. "They increase their own revenue while keeping
us out of their core business."

Title: Bell Atlantic Execs Seek To Ease FCC's Merger Concerns
Source: Telecommunications Reports Daily
Issue: Mergers
Description: Officials at the Federal Communications Commission are
reviewing the proposed Bell Atlantic-NYNEX merger and they are concerned
that Bell Atlantic had plans to compete with NYNEX before merger talks
began. Bell Atlantic Vice Chairman James G. Cullen has explained that Bell
Atlantic studies potential business opportunities "as a normal course of
business." But it
doesn't "commit to a course of action until it decides to spend money on a
project. Bell Atlantic never decided to budget funds to go into the local
telephone business in New York."

At the FCC
"Thinking About Why Some Communications Mergers are Unthinkable" FCC
Chairman Reed Hundt Calls Combination of AT&T and an RBOC "Unthinkable".

FCC denies petitions for stay of its Access Reform and X-Factor orders (FCC
97-216, CC Dockets 96-262, 94-1, 91-213, 95-72)
*********
Its Friday and we are outta here. Have a good weekend and we'll visit again
on Monday.

Communications-related Headlines for 6/19/97

Southern Baptist Convention Calls for Boycott of Disney

In Unusual Move, F.C.C. Chief Criticizes a Possible Deal

Baptists Vote to Boycott Disney Fare

E-Magazine Started in China

Couch Potatoes Sprout Wings

AT&T-SBC Pact Expected to Draw Hundt's Concern

Baptists Vote Boycott of Disney, Calling Positions 'Immoral'

Hundt Chastises House, Senate Committees Over Spectrum "Giveaway" Legislation

Universal Service Order (FCC 97-157) was published in the June 17, 1997
Federal Register

Spectrum Policy and Auctions: What's Right, What's Left

Project Tell Celebration
*********************************************
Title: Southern Baptist Convention Calls for Boycott of Disney
Source: New York Times (A16)
Author: Allen Myerson
Issue: Religion
Description: The Southern Baptist Convention called for a boycott of the
Walt Disney Company to protest the media giant's stance on homosexuality.
Disney extended health benefits to employee's homosexual partners and aired
the controversial Ellen coming out party on ABC this year. The boycott is to
cover the entire Disney empire: movie studios, cable television channels,
book publishers, trade magazines, newspapers, television and radio stations,
theme parks, stores, the ABC network and various small island city-states.

Title: In Unusual Move, F.C.C. Chief Criticizes a Possible Deal
Source: New York Times (D1)
Author: Mark Landler
Issue: Mergers
Description: Federal Communications Commission Chairman Reed Hundt plans to
deliver a "tart, point-by-point rebuttal" to AT&T's chairman Robert Allen's
rationale for a possible merger between the largest long distance company
and the largest of the six Baby Bells, SBC. "Congress, in my view, intended
these companies to be in separate war rooms, planning strategies directed at
each other's markets. Congress did not intend AT&T and the Bells to be in
each other's board rooms discussion combinations." Hundt likened a AT&T/SBC
deal to allowing the dominant producer to merge with the monopoly supplier
of bran -- so that the combined company could compete in the raisin bran
industry.

Title: Baptists Vote to Boycott Disney Fare
Source: Washington Post (A1)
Author: Marc Fisher and Paul Farhi
Issue: Religion
Description: Yesterday the Southern Baptists Convention, the nation's
biggest Protestant denomination, started a boycott of the Walt Disney
Corporation. The 15 million member Baptist group joined with other
religious denominations and conservative Christian organizations to rally
against "what they see as Disney's acceptance of homosexuality in its
employment practices and its entertainment products." Disney products such
as the films Kids and Priest, about a gay clergyman, and the TV show,
Ellen, along with Gay Days at Walt Disney World and the company's inclusion
of employees' homosexual partners in health benefits has angered
conservative Christian groups for awhile. CPP Pop quiz: Were Minnie and
Mickey married?

Title: E-Magazine Started in China
Source: Washington Post (A22)
Author: Reutuer Staff
Issue: International
Description: China has its first underground electronic magazine called
Tunnel. Tunnel has had three issues since June and aims to help break the
lock on information and expression.

Title: Couch Potatoes Sprout Wings
Source: Washington Post (D1)
Author: Art Buchwald
Issue: TV/Disturbing Marketing Trends
Description: "Just when you thought there was no more the airlines could
do for you, they have added an incentive to get you to stay at home." You
too can get American Airlines frequent flyer miles by watching ABC shows and
filling out a questionnaire to prove that you did. "Everyone is taking it
seriously. Mark Weinberger who had a tennis game scheduled with me,
canceled at the last moment. His explanation was, 'I have to watch Prime
Time Live if I want to be upgraded to first class to Albany next week."

Title: AT&T-SBC Pact Expected to Draw Hundt's Concern
Source: Wall Street Journal (A8)
Author: Bryan Gruley
Issue: Mergers
Description: FCC Chairman Reed Hundt is expected to speak today on his
concerns about the proposed AT&T-SBC merger. Hundt's remarks will be a
response to AT&T Chairman Robert Allen's comments that the merger could
be pro-competitive.

Title: Baptists Vote Boycott of Disney, Calling Positions 'Immoral'
Source: Wall Street Journal (B2)
Author: WSJ Staff Reporter
Issue: Religion
Description: The Southern Baptist Convention voted to boycott Walt
Disney because of its "anti-Christian and anti-family direction." The group
is angered by Disney's decision to provide medical benefits to partners of
gay employees and Ellen's coming out episode.

Title: Hundt Chastises House, Senate Committees Over Spectrum "Giveaway"
Legislation
Source: Telecommunications Reports Daily
Issue: Digital TV/Spectrum
Description: In a speech addressing Citizens for a Sound Economy
, Federal Communications
Commission Chairman Reed Hundt criticized House and Senate reconciliation
bills that would allow broadcasters to hold on to additional spectrum until
less than 5% of US homes are using analog TV sets. Chairman Hundt said these
provisions will turn the "loan" of additional spectrum into a "gift." Hundt
said provisions in the Senate bill will also strip power from the FCC to
enforce a strict buildout schedule for digital broadcast facilities. That
power will be replaced with a directive that the FCC "encourage"
broadcasters to provide digital signals by Nov 1, 1999.

At the FCC
FEDERAL REGISTER NOTIFICATION
UNIVERSAL SERVICE, DOCKET NO. 96-45
The FCC's 5-08-97 Universal Service Order (FCC 97-157) was
published in the June 17, 1997 Federal Register. Effective dates:
July 17, 1997, except for Subpart E of Part 54 which will become
effective on January 1, 1998. This publication includes changes
made in the FCC's 6-04-97 errata. Petitions for Reconsideration of
the Order are due 7-17-97. Pursuant to Part 1 rules, oppositions to
petitions are due 15 days after notice of any petitions appears
in the Federal Register. Replies to oppositions are due 10 days
after the date for filing oppositions has expired.

Chairman Hundt's 6/18/97 Speech "Spectrum Policy and Auctions: What's Right,
What's Left" to the Citizens for a Sound Economy, in Washington, D.C.

Chairman Hundt's 6/17/97 Speech to the Project Tell Celebration at the City
University of New York
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Communications-related Headlines for 6/18/97

A Rock 'n Roll Station Is Pushed Off the Air In Bureaucratic Morass

The Costs of Online Government

Journalistic Muddle

UDC to Sell Radio Station

Motorola to Compete With Satellite Project

Deep Cuts Proposed For Arts

Senate Commerce Committee Approves Budget Plan With Major Amendments to
Administration's Bill

CBO "Score" of House Budget Bill Down By $9.7 Billion

CORRECTION: Monday 6/16's Headlines reported that "Billy Tauzin of the House
Telecom Sub-committee is against spectrum fees." The Broadcasting&Cable
article reported that Senate Commerce Committee Chairman John McCain is
"opposed to spectrum fees," and "that he believes they are another tax."
*********************************************
Title: A Rock 'n Roll Station Is Pushed Off the Air In Bureaucratic Morass
Source: Wall Street Journal (A1)
Author: John R. Wilke
Issue: Radio
Description: Sub-title: No more lost pig reports. WZLS in Asheville, North
Carolina was
shut down after it lost a confusing battle with a rival group of investors
at the FCC. "Beyond Asheville, hundreds of FM licenses lie in limbo at the
FCC. The agency hasn't decided a contested radio case since 1994, when a
court threw out its old rules and ordered new ones. Its backlog is now 873
undecided applications for 212 new stations." FCC Chairman Reed Hundt
agrees that there is a problem. He would like to change the license
granting process from what he calls "subjective judgements" to
auction licenses for cash or for what he referred to as "quantifiable
public-service commitments." Hundt says, "Broadcasting is about serving the
public interest."

Title: The Costs of Online Government
Source: Washington Post (A15)
Author: Barbara J. Saffir
Issue: Federal Government
Description: A new General Accounting Office report explains that
executive branch organizations in the federal government spent $349 million
over three years on Internet-related activities. The Defense Department
led the branches in spending. In 1996, 42 agencies and departments spent
$190 million on 4,300 web sites, 215 computer bulletin boards, and 4,200
copies of tetrus (ok not the last part). Ann Lewis, White House
communications director, explained that, "We have an obligation to provide
to the American people...as much information as we can about policies
that make a difference in their lives." Greater than 1/3 of the employees
at the federal agencies that were surveyed are connected to the Internet and
1.7 million workers have e-mail access. The extent workers use email varies
from agency to agency. Article has a nice chart detailing Internet-related
spending by department.

Title: Journalistic Muddle
Source: Washington Post (A17)
Author: David S. Broder
Issue: Journalism
Description: In his column, Broder asserts that the 25th anniversary of
the Watergate break-in is marked with uncertainty for the journalism
community. Citizens who are eager to be in the know have more easily
available and more informed sources than ever before. The broader public,
however,is not faring better. "In far too many cases, inadequate reporting
or wide-spread indifference have left people ignorant of essential
information they need to function as citizens." A disengaged public and
dropping readership is pushing newspapers to develop new solutions. Some
are trying civic journalism, which has had mixed results according to a
recent study by Pew. "More organizations are dumbing down the public, going
for soft, human-interest stories or private scandals to attract a jaded
public." Corporate news executives, who aren't aware that good
journalistic values are developed by practicing journalism, are giving "the
most visible and influential jobs in their organizations to transplants
from the world of partisan politics."

Title: UDC to Sell Radio Station
Source: Washington Post (B6)
Author: Valeris Strauss and Marc Fisher
Issue: Radio
Description: University of the District of Columbia will help ease its
debt by selling its radio station WDCU (90.1) and leave the District without
any full-time jazz stations. UDC Trustees were not happy about the
decision, but felt there was no other way to help the university's debt. An
organization affiliated with Salem Communications is rumored to be the
successful bidder for the station. "Salem's format consists primarily of
paid programming from fundamentalist Christian organizations. The company
also syndicates the Oliver North talk radio show as well as other
conservative talk shows."

Title: Motorola to Compete With Satellite Project
Source: Washington Post (C11)
Author: Mike Mills
Issue: Info Tech
Description: Since Microsoft chose Boeing, and not Motorola, to help
build its (dum de de dum) Internet in the Sky, Motorola has transformed
itself from mild-mannered potential partner, to supreme rival. Motorola
filed with the FCC saying that it wants to create a 63 satellite, global
network for $12.9 billion. These satellites would beam video and data down
to land-dwelling consumers. Scientists are developing Orville Redenbacker
clones that can live in the oxygen free environment of deep space to send
popcorn down as well.

Title: Deep Cuts Proposed For Arts
Source: Washington Post (D1)
Author: Jacqueline Trescott
Issue: Arts & Culture
Description: The House Appropriations sub-committee voted to cut the budget
of the National Endowment for the Arts by 90% to $10 million. The Senate is
expected to support a budget of $99.6 million. The large difference between
the Senate and the House numbers will be worked out in conference committee.

Title: Senate Commerce Committee Approves Budget Plan With Major Amendments
to Administration's
Bill
Source: Telecommunications Reports
Issue: Budget Issues
Description: The Senate Commerce Committee approved the communications
section of the budget reconciliation bill with 16 amendments many offered by
the committee's chairman, Sen John McCain (R-Ariz). Despite criticism from
committee members, the provisions include estimated revenues from spectrum
license auctions over the next five years. The amendments prevent the FCC
from collecting license payments from bankrupt companies, block new fees on
spectrum users, eliminate a requirement that the FCC auction off "vanity"
888 phone numbers, and allow the FCC to lease spectrum for private mobile
radio systems. In regards to the digital TV spectrum giveback, an amendment
was approved will language similar to the House's: broadcasters will be able
to retain their analog spectrum until 95% digital TV penetration is reached.

Title: CBO "Score" of House Budget Bill Down By $9.7 Billion
Source: Telecommunications Reports
Issue: Budget Issues
Description: The Congressional Budget Office "scored" the House Commerce
Committee's budget reconciliation bill at $9.7 billion, down from an
original score of $19.4 billion. The reduction was a result of amendments by
Rep. Billy Tauzin (R-LA) that will void future spectrum auctions that do not
reach two-thirds of projected revenue and allow television broadcasters to
retain extra spectrum until digital television penetration reached 95%.

From new ad campaign running in New York Times and other newspapers:
It's Time for Clean Money Campaign Reform. A message from Public Campaign.
To find out more, call toll free 1-888-293-5755 or visit
.
*********

Communications-related Headlines for 6/17/97

Member Gets F.C.C. Delay In Inquiry On Liquor

MacArthur Foundation Chooses Grant Winners

Protect Internet Privacy -- Privately

White House Opposes Censorship of Internet

The Clintons' Pen Pal
*********************************************

Title: Member Gets F.C.C. Delay In Inquiry On Liquor
Source: New York Times (A12)
Author: John Broder
Issue: Advertising
Description: Commissioner Rachelle Chong has vetoed an attempt to get the
Federal Communications Commission to investigate liquor advertising on
television. "While I share concern about the serious societal problems of
underage drinking, drunk driving and alcoholism, these problems should be
addressed directly, by stronger enforcement of laws restricting the sale of
alcohol to minors, by improving drivers education and by programs that
assist recovering alcoholics," Commissioner Chong's statement reads.
President Clinton asked the FCC to investigate the lifting of a 50 year
voluntary ban on broadcast advertising by the distilled spirits industry.
FCC Chairman Red Hundt supports an investigation; fellow Democrat
Commissioner James Quello, a former broadcaster, opposes any FCC action.

Title: MacArthur Foundation Chooses Grant Winners
Source: New York Times (A14)
Author: William Honan
Issue: Philanthropy
Description: 23 MacArthur Fellowships were announced yesterday. They include
Pamela Samuelson, a professor of information management and of law at UC
Berkeley studying how modern communication methods are affecting
intellectual property; Susan Stewart, professor of English at University of
Pennsylvania, whose work includes a study of how literary practices
influenced social perception and activity; and David Forster Wallace of
Illinois State University, author of Infinite Jest.

Title: Protect Internet Privacy -- Privately
Source: Wall Street Journal (A18)
Author: Esther Dyson
Issue: Privacy
Description: This op-ed by the president of Edventure Holdings argues
that the government should not create regulations on Internet privacy.
Rather, solutions to privacy concerns like the Open Profiling Standard or
TRUSTe, a group that evaluates businesses' information practices and lets
consumers know the results, should be promoted.

Title: White House Opposes Censorship of Internet
Source: Washington Post (D1)
Author: Rajiv Chandrasekaran and John Schwartz
Issue: Internet Regulation
Description: According to a draft of a White House report, the Clinton
Administration will not support new legislation regulating Internet content. It
will support the continued development of technology to help users filter
online material not appropriate for children. The administration will still
back the Communications Decency Act, will lean towards industry
self-regulation, and will consider the Internet a medium different from
radio or television.

Title: The Clintons' Pen Pal
Source: Washington Post (C1) (6/16/97)
Author: Howard Kurtz
Issue: Journalism
Description: Sidney Blumenthal, a former writer for the New Yorker, New
Republic, and the Washington Post, has been a long time friend/advocate of
the Clintons and now is going to become assistant to the President. Many
have argued that Blumenthal was too close to the President to evaluate him
in the press.
*********