September 1997

CPP welcomes Philip Henry to the Headlines team. We're now 50% bigger than
ever before -- and we ain't talking girth, baby.

Funding
NTIA: Telecommunications and Information Infrastructure
Assistance Program

Mergers
WSJ: WorldCom Nears Acquisition of Brooks Fiber
WSJ: AOL Is Sued by News Corp's Kesmai In Attempt to
Block CompuServe Deal
FCC: MCI/British Telecommunications Merger

Web Browsers
WP: A New Battle in the Browser Tug of War
WSJ: New Web Browsers Play Down TV-Channel Approach

Internet/InfoTech
WSJ: Ticketmaster Signs Accord With Intel For
"Point of View" On-Line Ticketing

Publishing
WP: Read It and Weep: Online Publishing Actually Boosts Sales
WSJ: Publishers Often Pad Circulation Figures

Advertising
NYT: Limiting Speech on Subways

Electronic Commerce
NYT: Cashless Society Put to Test in Ontario Town

Education Technology
WP: In Fairfax Schools, Hard Questions on Software Program

Computer Literacy/Jobs
WP: U.S. Shortage of High-Tech Workers

Content and Children
NYT: Helping or Confusing, TV Labels Are Widening
NYT: Dilemma for Kids' Web Sites: Separating Fun Stuff From Ads
NYT: New York Cracks Down on Child Pornography

Universal Service
FCC: Universal Service & Rural Health Care Providers

Long Distance
WSJ: Bell South Plans to Seek FCC Approval To Offer South Carolina
Long Distance

Regulation
FCC: You Say You Want A Revolution: Law vs. Progress

Campaign Finance Reform
NYT: Threat Is Seen to Campaign-Finance Bill

International
WP: TV Licenses Spark Feud in Hungary

Arts
NYT: Roy Lichtenstein, Pop Master, Dies at 73

*********************************************
* Funding *
*********************************************
Title: Telecommunications and Information Infrastructure Assistance Program
(TIIAP)
Source: NTIA
http://www.ntia.doc.gov/ntiahome/press/97tiiap.htm
Issue: Funding
Description: Vice President Al Gore and Commerce Secretary William Daley
announced the award of $20.9 million in federal matching grants by NTIA's
Telecommunications and Information Infrastructure Assistance Program
(TIIAP). The grants help bring the benefits of the Information Age to all
Americans, particularly those living in rural and underserved inner city
areas. Fifty-five public institutions in 38 states and the District of
Columbia have been selected to receive the grants.

*********************************************
* Mergers *
*********************************************
Title: WorldCom Nears Acquisition of Brooks Fiber
Source: Wall Street Journal
http://wsj.com/ (A4)
Author: Steven Lipin
Issue: Mergers
Description: The nation's fourth largest long distance provider, WorldCom,
is back in the headlines with a reported deal to purchase Brooks Fiber, a
fast growing local telephone service provider. Brooks has 44 networks in
operation or under construction. WorldCom recently acquired CompuServe Corp
for its high-speed networking division and swapped the online service
providers individual customer's for America Online's networking division,
ANS Communications.

Title: AOL Is Sued by News Corp's Kesmai In Attempt to Block CompuServe Deal
Source: Wall Street Journal
http://wsj.com/ (B10)
Author: Jared Sandberg
Issue: Online Services/Mergers
Description: Kesmai Corp, a unit of Rupert Murdoch's News Corp, is suing
America Online, claiming aintitrust violations and seeking to block the
acquisition of CompuServe's member base. Kesmai makes online computer games
which it offers to AOL and other online services. AOL recently changed its
game area, adding games it produces. Usage of Kesmai games dropped by as
much as 92%. In its suit, Kesmai is saying that AOL is trying to conduct an
"illegal merger," is "engaged in a course of conduct designed to defraud and
destroy Kesmai," and is abusing its "monopoly power."

Title: MCI/British Telecommunications Merger
Source: FCC
http://www.fcc.gov/Bureaus/International/Orders/1997/fcc97302.html
Issue: Mergers
Description: FCC Releases Memorandum Opinion and Order ( FCC 97-302,
GN-96-245 ) Granting Merger of MCI Communications Corporation and British
Telecommunications plc

*********************************************
* Web Browsers *
*********************************************
Title: A New Battle in the Browser Tug of War
Source: Washington Post (C1)
http://www.washingtonpost.com
Author: Elizabeth Corcoran
Issue: Internet Service Providers
Description: Bill Gates, chairman of Microsoft Corp., will be unveiling
Internet Explorer 4.0, Microsoft's latest software for browsing the
World Wide Web. "IE 4.0" looks to be Microsoft's most potent campaign to grab
the rest of the browser market, 64% of which is now controlled by Netscape
Communications Corp. Microsoft plans to initially give away the program if
downloaded from the Web, which can overhaul the look of a PC by
weaving in the World Wide Web. Microsoft plans to sell IE 4.0 in October, but
no price has been announced. Some say that this tactic is unfair. Jamie
Love, who directs the Consumer Project on Technology, wants the
government to take antitrust action against Microsoft. The company has
packed the program with amazing features which involve "channels" that are
being sponsored by about 500 companies like Walt Disney, Time Warner, and
the Wall Street Journal. "It's probably one of the best bargains in
software history," said Yusef Medhi, the director of marketing for the
Internet software division at Microsoft. For now, Microsoft doesn't mind not
making money on what some analysts call a "big, monster program". "The
important thing for us is that it drives the sales of everything else."

Title: New Web Browsers Play Down TV-Channel Approach
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: David Bank
Issue: Info Tech
Description: Less than a year ago, "push" technology was all the rage for
Internet browsers. The technology allows publishers to automatically deliver
features such as stock quotes, news and advertising to individual PCs. But
now that "push" is here, many people don't seem to want it and Microsoft and
Netscape are distancing themselves from the hype. Many corporate technology
managers are concerned that the steady stream of downloaded data could slow
down internal networks.

*********************************************
* Internet/InfoTech *
*********************************************
Title: Ticketmaster Signs Accord With Intel For "Point of View" On-Line
Ticketing
Source: Wall Street Journal
http://wsj.com/ (B10)
Author: Bruce Orwall
Issue: Info Tech
Description: Ticketmaster has signed an agreement with computer chip maker
Intel to develop technology that would allow online ticket buyers to see the
view of the stage or field from the seats they are purchasing. The
technology is to be in place starting this spring for the 100 biggest venues
that Ticketmaster serves. The technology will also allow buyers to
pre-purchase food that could then be deliver to their seats during the game
or concert.

*********************************************
* Publishing *
*********************************************
Title: Read It and Weep: Online Publishing Actually Boosts Sales
Source: Washington Post (C1)
http://www.washingtonpost.com
Author: Beth Berselli
Issue: Internet Sales and Services (Books)
Description: A Washington publisher, Nat'l Academy Press, posted 1,700 of
its current titles on the Internet, letting everyone read for free. The
result was a 17% sales increase in sales the following year. NAP found that
whetting a reader's appetite was best done through cyberspace, especially
since reading an entire book online just isn't a pleasureable experience for
the eyes. Once a reader was curious enough, they would then
offer up their credit cards. "Electronic book publishing" is largely an
infant business, with concerns over start-up costs, copyrights, and the
basic belief that freebies will hurt sales. Barbara Kline Pope, director of
NAP, regards online publishing as "the same as a bookstore, with
people...browsing." Despite these concerns, electronic publishing is slowly
gaining acceptance, especially as a marketing tool. But, what is most
important is that the readers will benefit. Scott Lubeck, NAP's former
director, who initiated the project in 1994, said, "They will never have to
worry that a book won't be available."

Title: Publishers Often Pad Circulation Figures
Source: Wall Street Journal
http://wsj.com/ (B10)
Author: Patrick Reilly & Ernest Beck
Issue: Publishing/Advertising
Description: Amid recent reports that an Anglo-Dutch publishing giant
inflated circulation numbers, US marketing veterans are saying that such
numbers are overstated more often than people think. Publishers often
overpromise the circulation they can deliver and then make it up with cash
payments or "make-good" ad space. Circulation numbers are used to set the
price for advertising space.

*********************************************
* Advertising *
*********************************************
Title: Limiting Speech on Subways
Source: New York Times, A34
http://www.nytimes.com/yr/mo/day/editorial/index.map?150,151
Author: Editorial Staff
Issue: Advertising
Description: What? No more Calvin Klein Underwear ads? In a meeting being
held in New York today, the Metropolitan Transportation Authority's board is
scheduled to vote on changes to the agencies advertising standards. In the
name of protecting transit riders from sexually explicit advertisements,
vague new guidelines are being proposed which could bar many types of legally
permissible ads from being displayed on buses and subways. In reaction to
criticism, the M.T.A. claims that the selling of promotional space is a
commercial venture which justifies their right to reject material that they
think is unfit for certain segments of their transit passengers.

*********************************************
* Electronic Commerce *
*********************************************
Title: Cashless Society Put to Test in Ontario Town
Source: New York Times, D2
http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+1
0+0++%28cashless%20society%20put%20to%20test%20in%20ontario%29%20OR%20%28%29
%20OR%20%28%29
Author: Editorial Staff
Issue: Electronic Commerce
Description: "Smart cards" are being tested for the first time in North
America. Residents of Guelph, Ontario are participating in a community-wide
test where they can use these cards for small cash transactions. While
Mondex, an international British financial company who distributed the cards
in Canada, has been having a difficult time bringing consumers over to the
"smart card" mentality, those who have converted appear to be addicted.
Merchants don't have to count, stack and bundle at the end of the day and
consumers can leave home with only an electronic cash card in their pocket
as opposed to bulky dollar bills and coins. "Unlike credit or debit cards,
which need to connect to a central network, the chip-based Mondex cards
carry all the information needed to make a transaction. Cash value can be
loaded at an automated teller machine, or by using a specially outfitted
telephone." A similar experiment will be coming to New York's Upper West
Side on October 6.

*********************************************
* Education Technology *
*********************************************
Title: In Fairfax Schools, Hard Questions on Software Program
Source: Washington Post (B1)
http://www.washingtonpost.com
Author: Victoria Benning
Issue: Education Technology
Description: "Successmaker", a software program being used in 15 Fairfax
elementary schools as well as a growing number of schools nationwide, drills
students in all basic subjects. It keeps track of how long it takes for each
child to answer a question and provides individualized homework assignments,
letting students move through the curriculum at different speeds. But, while
educators and parents greatly support this new program, school officials
turned down a proposal to place the program in all 45 of Fairfax's
elementary schools on the county's eastern end. School administrators were
concerned about the cost, about $55,000, and the educational value, claiming
that its drills were a superficial style of teaching. Marianne O'Brien,
Fairfax's technology coordinator, said, "We just aren't sure it makes enough
difference to justify the cost... there are other things we'd rather do with
that money--like give more students access to technology and do more
creative things with it."

*********************************************
* Computer Literacy/Jobs *
*********************************************
Title: U.S. Shortage of High-Tech Workers
Source: Washington Post (C3)
http://www.washingtonpost.com
Author: Rajiv Chandrasekaran
Issue: Computer Literacy/Jobs
Description: The Commerce Dept. issued its first warning that a growing
shortage of workers with cutting-edge computer skills could hinder the
nation's economic growth. In that warning officials said that the Commerce
and Education departments would work with the technology industry to jointly
propose solutions to the labor shortage through a series of task forces and
a nationwide summit to be held next year. Andrew Pincus, the Commerce
Department's general counsel, said that the shortage "is increasing the cost
of doing business throughout this country and reducing our global
competitiveness and constraining our economic growth." The report the
department released included information gathered by the Information
Technology Association of America (ITAA), which estimated about 190,000
information technology jobs nationwide that are unfilled. Skeptics of the
report's estimates contend that these companies aren't doing enough to
attract and train workers with basic computer skills. Norm Matloff, a
computer science professor at the Univ. of California at Davis, said, "The
report is a tool of special interests...the industry is not willing to train
people or give them a chance to pick up those skills on the job."

*********************************************
* Content and Children *
*********************************************
Title: Helping or Confusing, TV Labels Are Widening
Source::New York Times, B1, B8
http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+37
+0++%28tv%20labels%29%20OR%20%28%29%20OR%20%28%29
Author: Lawrie Mifflin
Issue: V-Chip
Description: Beginning tomorrow, most television networks across the U.S.
will add new labels to the already existing TV-G, TV-PG, TV-14 and TV-MA.
The new labels will be D, L, S and V, standing for suggestive dialogue,
course language, sex and violence. While there are basic guidelines, there
is no set way for determining what type of material denotes which rating as
each program is open to subjective interpretation. The system has been
designed to work with a computer V-chip which will allow viewers to block
programs with certain ratings. Under Federal law, this chip will be
installed in all newly produced television sets starting in 1998. [There
will be no warnings if tofu will appear in during the program]

Title: Dilemma for Kids' Web Sites: Separating Fun Stuff From Ads
Source: New York Times, CyberTimes
http://search.nytimes.com/books/search/bin/fastweb?getdoc+cyber-lib+cyber-
lib+17461+0++dilemma%20for%20Kids%27%20Web%20Sites
Author: Pamela Mendels
Issue: WWW
Description: One of the big questions facing companies that focus on the
online children's market is how to attract advertisers while assuring
parents that their kids are not being deceived by ads and promotions. Many
are considering labeling advertisements so their young users will be able to
easily identify promotions from website content. Others are considering
more unusual ways of generating income so they can provide sites that are
virtually ad-free. The main goal for commercial children's Web site
operators is to come up with ways to sustain the company without forfeiting
an online site where kids can learn and have fun.

Title: New York Cracks Down on Child Pornography
Source: The New York Times
http://www.nytimes.com/library/cyber/week/093097porn.html
Author: Seth Schiesel
Issue: Internet Regulation
Description: The New York state general attorney, Dennis Vacco, announced
on Monday that his office has identified more than 1,500 people worldwide
who are suspected of trafficking in illegal child pornography over the
Internet. The U.S. Customs Service cooperated in the 18-month investigation,
which led to 34 arrests. Subsequently, 90 other people have been referred
for prosecution in Arizona, Michigan, Germany, and Britain, according to
Chris McKenna, Vacco's spokesman. Vacco added a collection of images that he
said, "would be the envy of pedophiles worldwide, with over 200,000 seperate
images." The electronic possession or transmission of child pornography is
illegal under federal law in 18 states, including New York.

*********************************************
* Universal Service *
*********************************************
Title: Universal Service & Rural Health Care Providers
Source: FCC
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1997/da972039.html
Issue: Universal Service
Description: Workshop on Draft Application Form for Rural Health Care
Providers Applying for Universal Service Support to be Held September 30
from 9:00 a.m.-12:00 noon in the Commission Meeting Room, 1919 M Street,
N.W., Room 856, Washington, D.C. Interested parties may attend the workshop.
The workshop also will be recorded on video, and copies of the videotape
will be available in the Commission's Reference Room, 1919 M Street, N.W.,
Room 239, Washington, D.C. 20554. [Listen on the Internet at
http://www.fcc.gov/realaudio/] Draft forms available at
http://www.fcc.gov/formpage.html#hc]

*********************************************
* Long Distance *
*********************************************
Title: Bell South Plans to Seek FCC Approval To Offer South Carolina Long
Distance
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Leslie Cauley
Issue: Long Distance
Description: BellSouth plans to seek Federal Communications Commission
approval to start offering long distance in one the local service provider's
home markets, South Carolina. Bell South contends that it has opening up
this market for competition, but competitors have failed to enter the
market. South Carolina telephone regulators have approved BellSouth's plan
finding that AT&T and other large carriers have no plans to offer local
service in the primarily rural state.

*********************************************
* Regulation *
*********************************************
Title: You Say You Want A Revolution: Law vs. Progress
Source: FCC
http://www.fcc.gov/Speeches/Hundt/spreh757.html
Author: Reed Hundt
Issue: Regulation
Description: "We need you to figure out: how to make democracy possible in a
digital age; how the path of the common good can be taken in a media-induced
and lawyer-created fog of criticism and complexity; how America can export a
wealth-creating, fairness-engendering, happiness-facilitating system of
governance to the world; and how to solve the problems of poverty, disease,
global warming, inequality of opportunity."

*********************************************
* Campaign Finance Reform *
*********************************************
Title: Threat Is Seen to Campaign-Finance Bill
Source: New York Times, A22
http://www.nytimes.com/yr/mo/day/politics/index.map?66,118
Author: Eric Schmitt
Issue: Campaign Finance Reform
Description: Majority leader Sen. Trent Lott proposed an amendment to the
campaign-finance reform legislation yesterday that Democrats claim would
kill the bill. "The provision would prohibit unions from deducting dues
from union and non-union workers for political activity without their
permission. The change would significantly curtail a union's ability to
raise money for political purposes. Because unions endorse Democratic
candidates far more often then they endorse Republicans, most Democrats have
vowed to vote against any campaign-finance bill that includes this
provision. Many Republicans oppose overhauling the country's
election-financing system and would be delighted to see it die on the floor."

*********************************************
* International *
*********************************************
Title: TV Licenses Spark Feud in Hungary
Source: Washington Post (A17)
http://www.washingtonpost.com
Author: Christine Spolar
Issue: International
Description: There is a court battle going on over the privatization of
Hungary's airwaves. Central European Media Enterprises, or CME, claims that
the Nat'l Radio and Television Commission broke the law by giving broadcast
licenses to two European media groups that offered lower bids. CME did
offer $20 million more than its competitors for the 10-year licenses, but
broadcast commissioners were looking for more than money in creating the
first private stations in Hungary. Mihaly Revesz, the head of the
seven-member commission, said, "This is Eastern Europe, and here people are
always suspecting politics or corruption to explain things...in this case
I'm comfortable with the broadcast landscape." There has been a nearly
2-year old media law in place to regulate how these licenses could be sold
without political influence, yet still spawned speculation about possible
political deals and the integrity of the licensing process.

*********************************************
* Arts *
*********************************************
Title: Roy Lichtenstein, Pop Master, Dies at 73
Source: New York Times, A1, D31
http://www.nytimes.com/yr/mo/day/news/national/obit-lichtenstein.3.jpg.html
Author: Michael Kimmelman
Issue: Arts
Description: Roy Lichtenstein, a major figure in American art since his
debut at the Leo Castelli Gallery in Manhattan in 1962, died yesterday at
the age of 73 due to complications from pneumonia. Lichtenstein's art was
quintessentially pop as he produced works that mimicked the flat colors,
bold lines and dots found in the funny pages. He mixed image and text,
using a strategy of appropriation which helped to pave the way for some of
the techniques used by today's younger artists. Remaining within his own
style he managed to keep up with the times coupling 1990's irony with 1960's
imagery. The painter Larry Rivers described Lichtenstein as a person who
"got the hand out of art, and put the brain in."
*********

CPP welcomes new Headliner Betsy Puckett to our growing team!

Internet
TelecomAM: Web Television: Trying To Make Better TV
WSJ: RCA Challenges WebTV in the Race To Link TV and Net
WSJ: Muzak Wafts Tunes Into Cyberspace
WSJ: Should Only the Paranoid Get E-Mail Protection?
WSJ: Internet Ad Proponents Try a New Tack
NTIA: Internet Domain Name Policies

Journalism
WSJ: Feathers Fly

Arts
WP: NEA Backers Gain
NYT: More Than Enduring Faulkner Prevails

Cable
FCC: The State of Competition in the
Cable Television Industry

Telephone Regulation
NECA: FCC Preempts Provision of Wyoming Telecom Act

Campaign Finance Reform
NYT: Mr. Clinton's Blow for Reform
NYT: An Old Fund-Raising Law Is Revisited in New Context

Education
NYT: In Public School, Uniforms as Dress for Success

Info Tech
NYT: Many Reported Unready To Face Year 2000 Bug

*********************************************
* Internet *
*********************************************
Title: Web Television: Trying To Make Better TV
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Info Tech
Description: WebTV, admits chief executive Steve Perlman -- is really not
about the Web; its about better television. "People that are really into it,
they don't think of it as the Web, they think of it as better television. We
would call WebTV interactive television if it didn't have such a bad
reputation -- if, called that, it wasn't doomed to failure." WebTV Plus will
go on sale next month using a pared down version of Microsoft's Windows
called Windows CE. The system will include a 56K modem and a 1G hard drive
capable of storing 12 hrs of compressed video or 50 hours of video. The
system will provide an electronic programming guide that goes beyond just
show times to include descriptions of films (or movies) and a star's
filmography. Sports statistics can also be viewed during a game.

Title: RCA Challenges WebTV in the Race To Link TV and Net
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Walter Mossberg
Issue: Info Tech
Description: RCA wants to challenge market leader WebTV and to get you using
your TV to view the Internet. RCA's Network Computer is the first consumer
product to be based on a design from Oracle's Network Computer division. But
this new device doesn't compete well with WebTV or the promise of WebTV Plus
(expected soon) which will allow TV programs and Web material to be shown on
the same screen -- thus creating an early form of truly interactive
television. WebTV Plus will also include a large hard disk, the ability to
play video clips off the Web, and "an ultrafast 'video modem' that blasts
certain Web content to your TV."

Title: Muzak Wafts Tunes Into Cyberspace
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Bill Richards
Issue: Internet Content
Description: Elevator music is coming to the Internet! No not really. "Next
to spam, we have the most negative brand identity in the world," says the
company's programming director. Musak licenses snippets of songs from music
companies and sends them over the Net to Web sites. The service is already
being used by Tower Records http://www.towerrecords.com/, Blockbuster
http://www.blockbuster.com/, and Microsoft's "Music Central."

Title: Should Only the Paranoid Get E-Mail Protection?
Source: Wall Street Journal
http://wsj.com/ (B6)
Author: Thomas Weber
Issue: Encryption
Description: Worried about the wrong people reading your email? Encryption
technology is getting easier to use and, as some security consultants say,
even in low-crime towns, people lock their doors at night. Encryption allows
you to turn today's email postcard into an email letter -- safe, snug and
private in an electronic envelope.

Title: Internet Ad Proponents Try a New Tack
Source: Wall Street Journal
http://wsj.com/ (B8)
Author: Sally Goll Beatty
Issue: Advertising/Internet
Description: In order to sell advertising on the Internet, some firms are
trying to point out the similarities between Web surfing and traditional
couch potatoes-ing. A recent survey shows that Web advertising really is
effective in getting a brand name known and getting people more interested
in buying a product. But, for now, Web advertising is more expensive than
television ads. The price per 1,000 people reached for television ads is
generally $12 and runs up to $20-$30 for the highest rated shows. For Web
advertising, the cost is generally $40-$50 per 1,000 people reached and for
the priciest sites, its $60-$70.

Title: Internet Domain Name Policies
Source: NTIA
http://www.ntia.doc.gov/ntiahome/congress/92597_domnametest.htm
Author: Larry Irving
Assistant Secretary of Commerce for
Communications and Information
Description: Testimony before House Committee on Science, Subcommittee on
Basic Research: "No single force embodies the electronic transformation we
are experiencing today more than the evolving medium known as the Internet.
Once a tool reserved for scientific and academic exchange, the Internet has
emerged as an appliance of every day life, accessible from almost every
point on the planet. Students across the world are discovering vast
treasures of data via the World Wide Web. Doctors are utilizing telemedicine
to administer off-site diagnoses to patients in need. The Internet is being
used to reinvent government and reshape our lives and communities. Finally,
as the Internet empowers citizens and democratizes societies, it is also
changing classic business and economic paradigms...."

*********************************************
* Journalism *
*********************************************
Title: Feathers Fly
Source: Wall Street Journal
http://wsj.com/ (A1)
Author: Kevin Helliker
Issue: Journalism
Description: Twenty-one armed federal agents descended on a Jordan, Montana
ranch to investigate reports that the owner was poisoning eagles that were
preying on his sheep. Why such a show of force by the US Fish and Wildlife
Service? Because it made for good television, the owner contends. Unknown to
the owner, three of the federal agents who served him with a warrant were
wired -- not to other law officials but to a CNN tape recorder. Three of the
people who spent the day investigating the ranch were CNN employees. "This
was a case where government agents became reporters and reporters became
government agents," the owner's lawyer contends. The owner is suing the
federal government and CNN claiming their Fourth Amendment rights were violated.

*********************************************
* Arts *
*********************************************
Title: NEA Backers Gain
Source: Washington Post (C2)
http://www.washingtonpost.com/
Author: Jacqueline Trescott
Issue: Arts
Description: The battle over funding of the National Endowment for the arts
heated up yesterday. Long-time supporter Rep Sidney Yates (D-IL) got a
nonbinding resolution passed in the House that instructs House and Senate
conference committee members to approve the $100 million budget for the NEA
that the Senate passed earlier this year. Rep Pete Hoekstra (R-MI) released
a report critical of NEA management and grant distribution.

Title: More Than Enduring Faulkner Prevails
Source: New York Times (B1)
http://www.nytimes.com/
Author: Mel Gussow
Issue: Arts
Description:Commemorations take place around the United States today to
celebrate the birth of William Faulkner. Faulkner, who was born in New
Albany, Miss. but spent most of his life in Oxford, Miss., has been
acknowledged as one of the most important novelists of the 20th century. He
is probably best known for his masterpieces, "The Sound and the Fury," As I
Lay Dying," Light in August," "Absalom, Absalom!," and his vivid stories
built around the fictional Yoknapatawpha County.

*********************************************
* Cable *
*********************************************
Title: The State of Competition in the Cable Television Industry
Source: FCC
http://www.fcc.gov/Speeches/Hundt/spreh754.html
Author: Reed Hundt, Chairman
Issue: Cable Television/Competition
Description: Testimony before the House of Representatives Judiciary
Committee: "I am pleased to appear before you today to provide the Federal
Communications Commission's perspective on the status of competition in the
cable television industry. The Commission, and the Commission's Cable
Services Bureau, are working hard to promote the development of competition
and consumer choice in the marketplace for multichannel video programming...."

*********************************************
* Telephone Regulation *
*********************************************
Title: FCC Preempts Provision of Wyoming Telecom Act
Source: National Exchange Carrier Association
http://www.neca.org
Issue: Telephone Regulation
Description: (MEMORANDUM OPINION AND ORDER, CCBPol 97-1, FCC 97-336)
"The Commission has preempted a provision of the Wyoming Telecommunications
Act of 1995 (Wyoming Act) that empowers certain incumbent LECs to veto any
attempt by a competitor to provide service in the service areas of the
incumbent. The Commission also preempted an Order of the Wyoming PSC denying
Silver Star's application to provide local exchange service in the Afton,
Wyoming local exchange service area. In deciding to preempt, the Commission
found that the Wyoming Act and the Order of the Wyoming PSC fall within the
prohibition of Section 253(a) of the Communications Act. The Commission
further found that the Wyoming Act and the PSC Order are not *competitively
neutral* within the meaning of Section 253(b) of the Communications Act.

*********************************************
* Campaign Finance Reform *
*********************************************
Title: Mr. Clinton's Blow for Reform
Source: New York Times (A34)
http://www.nytimes.com/
Author: New York Times Editorial Staff
Issue: Campaign Finance Reform
Description: On Tuesday of this week, Bill Clinton threatened to call a
special session if Congress adjourned without addressing the campaign
finance reform issue. Democrats and Republicans have now agreed to permit a
vote on the McCain-Feingold reform legislation as early as October. This
reform would enact a variety of changes reaching from a ban on unlimited
donations to all political parties by individuals, corporations and labor
parties, to an amendment that require labor unions to notify any
non-union members, so they may request refunds, of any dues that have gone
towards political purposes. Currently there are 45 Democrats and 4
Republicans in support of this legislation with the spotlight being placed
on those Republicans that have expressed unease with the current campaign
finance system in the past.

Title: An Old Fund-Raising Law Is Revisited in New Context
Source: New York Times (A1)
http://www.nytimes.com/
Author: Stephen Labaton
Issue: Campaign Finance Reform
Description: On the urging of Senator George H. Pendleton, the 1883 Congress
passed one of the most significant civil service reforms in history. This
law was created to protect low-level civil servants from being forced to
make "voluntary" political "contributions". This reform, which has been
ammended several times over the past century, is once again on the chopping
block. Justice Department officials are now aiming to decide how to
interpret the laws original intent in relation to fund-raising calls placed
from the offices of today's high-ranking officials and the big-time donors
of the nineties.

*********************************************
* Education *
*********************************************
Title: In Public School, Uniforms as Dress for Success
Source: New York Times (A1)
http://www.nytimes.com/
Author: Tamar Lewin
Issue: Education
Description: From small towns to large cities, public school uniforms are
becoming more and more common. Ten or 20 years ago this concept would have
probably raised eyebrows being criticized as keeping students from
expressing their individuality. But today it is being more readily embraced
as it appears to breed unity and self-esteem among the students, makes it
less expensive and easier for parents to outfit their kids for school, and
cuts down on the divisions between the have and have nots. At most schools
the uniforms are voluntary but may become mandatory in the coming years.

*********************************************
* Info Tech *
*********************************************
Title: Many Reported Unready To Face Year 2000 Bug
Source: New York Times (D3)
http://www.nytimes.com/
Author: Laurence Zuckerman
Issue: Info Tech
Description: In a recent study conducted by the Gartner Group, findings show
that 30 percent of companies around the world have not even begun to address
the effect that the year 2000 will have on their computers. The majority of
these were smaller companies with less than 2,000 employees. But research
also showed that larger organizations, such as hospitals, universities, and
Government agencies, were also way behind schedule. Top economists have
warned that if the 2000 problem, or millennium bug as it is often called,
is not effectively dealt with we could be faced with a global recession.
*********
Happy wire-to-wire day to the O's!!!!

Haste Makes Waste!
In our rush to get Headlines out this morning, we missed
a couple of articles you might want to know about.
Sorry for the additional email.

Universal Service
TelecomAM: Rise & Shine:
Universal Service Company Gets Out of Bed,
Tries to Get Organized

Consumer Issues
WSJ: Consumer Groups To Pressure FCC On Cable-TV Rates
TelecomAM: Consumers Resist Packages That Combine Phone,
Cable & Electric, Says Survey

Campaign Finance Reform
WP: Legal Scholars Enter Constitutional Fray on the
Side of Campaign Finance Bill

Internet
TelecomAM: Internet Access Service Aims to Counter
Market Dominance

Volunteerism
NYT: Push for Volunteerism Brings No Outpouring

*********************************************
* Universal Service *
*********************************************
Title: Rise & Shine: Universal Service Company Gets Out of Bed, Tries to
Get Organized
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Universal Service
Description: The Board of Directors of the Universal Service Administrative
Company (USAC) met for the first time Monday less than sure of its function.
Tony Butler of the National Urban League questioned why there are three
bodies created to do one job. There are also boards for two additional
companies -- the Schools and Libraries Corporation and the Rural Health Care
Corporation. These two companies are not related to USAC in any way other
than their board members sit on the USAC Board. USAC will administer
universal service funds until a permanent, independent, nonprofit is picked
to do he job. The work of the Schools and Libraries Corporation and the
Rural Health Care Corporation will continue whether USAC continues or not.
The Schools and Libraries Corp will administer the $2.25 billion annual fund
for telecommunications discount for these eligible entities; the Rural
Health Care Corp will administer a $400 million annual fund.

*********************************************
* Consumer Issues *
*********************************************
Title: Consumer Groups To Pressure FCC On Cable-TV Rates
Source: Wall Street Journal
http://wsj.com/
Author: Barbara Martinez
Issue: Cable TV Regulation
Description: The Consumer Federation of America and Consumers Union
(publisher of Consumer Reports) plan a press conference to pressure the
Federal Communications Commission to lower cable television subscription
rates. They plan to "attack the agency charged with overseeing the cable
industry for its failure to crack down on cable-industry abuses and
sky-rocketing rates." A spokeswoman for the National Cable Television
Association said the trade group would oppose any further government
intervention and added that consumers are "very educated these days. They
continue to subscribe to cable because they se it as a good deal." Since
passage of the Telecommunications Act of 1996, cable rates have increased at
a rate three times that of inflation, claims the Consumers Union. But Wall
Street analysts believe that rates are up because of growing programming
costs. The consumers groups may find that there is no Congressional support
for increased regulation of the cable industry. [For more information call
202.462.6262]

Title: Consumers Resist Packages That Combine Phone, Cable & Electric, Says
Survey
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Competition
Description: Consumers "want more choices -- not fewer -- among providers of
their energy, telecommunications and home entertainment services," a new
survey by RKS Research & Consulting concludes. Some 75% of the affluent,
educated customer segment of the survey sample said they would prefer buying
phone electricity and cable services from separate vendors as compared to
48% of the entire 1,000 household sample. Consumers are aware of their
options in telecommunications with two-thirds having switched their long
distance provider in the last year and 44% aware of the imminent prospect of
choice for electrical and cable TV services. If they did choose one vendor
for the all-in-one package, 33% said they would select the services from
their electric company, 19% from their phone company, 12% from their long
distance company, and only 4% from their cable company.

*********************************************
* Campaign Finance Reform *
*********************************************
Title: Legal Scholars Enter Constitutional Fray on the Side of Campaign
Finance Bill
Source: Washington Post (A5)
http://www.washingtonpost.com/wp-sri/WPlate/1997-09/23/023l-092397-idx.html
Author: Helen Dewar & Ceci Connolly
Issue: Campaign Finance Reform
Description: Responding to critics of campaign finance legislation that say
key provisions are unconstitutional, sponsors of the bill released a letter
signed by 126 legal scholars that disputed that claim: "we all agree...that
the current debate on the merits of campaign finance reform is being
sidetracked by the argument that the Constitution stands in the way of a ban
on unlimited contributions to political parties and a voluntary spending
limits scheme based on offering inducements such as reduced media time."
Political spending has been equated with free speech in Supreme Court
decisions starting with Buckley v. Valejo (1976). [To navigate your way
through campaign finance reform, visit Destination Democracy
http://www.destinationdemocracy.org/intro.html]

*********************************************
* Internet *
*********************************************
Title: Internet Access Service Aims to Counter Market Dominance
Source: Telecom AM http://capitol.cappubs.com/am/
Issue: Internet Sales and Services
Description: Snap! Online, developed by CNET, provides Internet subscribers
with easy navigation guides to the World Wide Web. It is backed by the three
largest long distance providers -- AT&T, Sprint, & MCI -- two Baby Bells --
Bell South and Bell Atlantic, and independent access providers like
EarthLink. With 3.5 million online users, the service hopes to compte with
America Online which will have 12 million subscribers after the purchase of
CompuServe is complete. The 10,000 ISPs think they can compete with AOL if
they can improve their content. Many of these services provide subscribers
with Internet browsers when they sign up. These browsers initially point to
the access providers sites, but there's little more information there than
rates and baud rates -- and 80% of subscribers never change their settings.
ISPs will now point subscribers directly to Snap!

*********************************************
* Volunteerism *
*********************************************
Title: Push for Volunteerism Brings No Outpouring
Source: New York Times (A16)
http://www.nytimes.com/yr/mo/day/news/national/volunteerism.html
Author: Judith Miller
Issue: Volunteerism/Political Participation
Description: While some volunteer and social-service groups are reporting
increased interest in volunteering since April's Summit for America's
Future, there is little evidence of masses of individuals coming forward
nationwide. And some wonder volunteerism is the best use of resources to
solve major social problems. Jon Van Til, professor at Rutgers University,
says "Wouldn't it be better if [companies] went to these organizations and
said, 'You've got a choice -- a $1,000-a-day accountant doing a $5-an-hour
job picking up trash, or a gift of $1,000.'" Many organizations, he
contends, would "quickly take the money." Assessing the effects of
volunteerism will be hard unless better methods of tracking it are developed.
*********

Journalism
NYT: In a Company Town, Some People Claim Right to Know
NYT: Small Daily Tries to Take College Paper to School

Internet Issues
NYT: An Electronic Sheriff to Battle Book Rustling
NYT: The Conservative as Techno-Libertarian
NYT: A New On-Line Publisher Promotes Nonfiction on a Pay-Per-Read
Basis

Television
NYT: Media: A New TV Season
FCC: Kids TV: The Impossible Has Become Inevitable
FCC: Hundt on Digital TV
NTIA: Irving on Digital TV

Mergers and Ownership
WSJ: Westinghouse to Buy American Radio
NTIA: The Big Chill

Competition
WSJ: Eyeball to Eyeball: It's the Phone Man At the Door --
and He Has a deal on Cable TV
FCC: The 1996 Telecommunications Act: An Anti-trust Perspective

Privacy
NYT: U.S. Inaugurating A Vast Database Of All New Hires
NYT: On the Office PC, Bosses Opt For All Work, and No Play

Education Technology
WP: Creative Tools Or Electronic Flashcards?

Philanthropy
WSJ: How Turner Decided to Give Away $1 Billion

At the FCC
Commissioner Chong Challenges Radio Broadcasters to
Fight for First Amendment Freedom
Chairman Reed Hundt on Need for Law to Guarantee that
FCC Can Reclaim and Reauction Spectrum Licenses From
Licensees Who Default

At the NTIA
Networks for People: TIIAP at Work

*********************************************
* Journalism *
*********************************************
Title: In a Company Town, Some People Claim Right to Know
Source: New York Times (A27)
http://search.nytimes.com/search/daily/bin/fastweb?getdoc+site+iib-site+66+
0++%28corning%29%20AND%20%28leader%29%20AND%20%28newspaper%29
Author: William Glaberson
Issue: Journalism
Description: In Corning, New York, the local newspaper, The Leader, reported
that the town's major company, Corning, was in a "state of emergency" due to
bad performance of one of it's main businesses. CNBC picked up the story and
stock tumbled. Corning told employees that the story was "inaccurate and
irresponsible" and removed all The Leader's coin operated machines off its
property. A couple of days later, Corning reported less than expected
earnings and the stock tumbled again. The town is still fighting over the
role of The Leader. "There are some people who are very, very angry with the
newspaper. As in any small community, people see the newspaper as he voice
of the community. When the voice harms the community, you become angry at
the voice."

Title: Small Daily Tries to Take College Paper to School
Source: New York Times (D1)
http://www.nytimes.com/yr/mo/day/news/financial/iowa-newspapers-media.html
Author: Iver Peterson
Issue: Journalism
Description: The Daily Tribune of Ames claims that The Iowa State Daily is
using its tax-free status, its subsidized circulation, and a
professionalized, nonstudent business staff to compete unfairly for local
subscribers and advertisers. The college daily claims it would have to fold
if it did not expand off-campus.

*********************************************
* Internet Issues *
*********************************************
Title: An Electronic Sheriff to Battle Book Rustling
Source: New York Times (D1)
http://www.nytimes.com/library/cyber/week/092297tags.html
Author: Doreen Carvajal
Issue: Copyrights
Description: The Association of American Publishers
http://www.publishers.org/ will announce today a new digital system for
tagging electronic publications. "Digital Object Identifier" or "DOI" will
allow electronic publishers to organize and track material, charge for
purchases, and secure copyrighted materials. With these protections, the
music and film industries may start taking advantage of the Internet as a
delivery system.

Title: The Conservative as Techno-Libertarian
Source: New York Times (D4)
http://www.nytimes.com/library/cyber/week/092297gilder.html
Author: John Markoff
Issue: Regulation
Description: Conservative author George Gilder told attendees of the first
Telecosm Conference to watch for emperors -- like Microsoft's Bill Gates --
and morons -- like FCC Chairman Reed Hundt. Both will try to hold back the
technological advancements that will revolutionalize business, Mr. Gilder
says. Mr. Gilder's version of "It Takes A Village," "Telcosm" will be
released next year.

Title: A New On-Line Publisher Promotes Nonfiction on a Pay-Per-Read Basis
Source: New York Times (D9)
http://www.nytimes.com/library/cyber/week/092297byline.html
Author: Jon Christensen
Issue: Publishing
Description: Jon Franklin, a "midlist" writer, has set up a Web site
http://www.bylines.org to sell writing directly to readers. Works are
offered from $0.20 to $2.50. Mr. Franklin does not think he's competing to
books available in print, "We're competing with the book that isn't there.
You can't get it" because publishers today are not backing "midlist" books.
The site is a joint effort of Mr. Franklin, his wife, Investigative
Reporters and Editors at the University of Missouri, and News Engin Inc,
which programs computer systems for newsrooms.

*********************************************
* Television *
*********************************************
Title: Media: A New TV Season
Source: New York Times (D9)
http://www.nytimes.com/yr/mo/day/news/financial/tv-season-media.html
Author: Bill Carter
Issue: Television Economics
Description: Television executives are both excited and nervous about the
new TV season which begins tonight. With pressure from cable, syndicated
shows, and the Internet, the networks are changing strategies. 1) Networks
have decided to pit their biggest hits against each other. Wednesday nights,
for example, will see five networks program some of their best shows at the
same time ("No one has that many VCRs," one network exec says.) 2) Networks
will produce more of the programming that works best for them: for example,
NBC will churn out more "young adult comedies." 3) Networks will be more
concerned with beating other networks that cable stations since many have
interests in cable TV.

FCC Chairman Reed Hundt Encourages Parents and Activists to Watch, Critique,
and Report on New Kids TV Shows
http://www.fcc.gov/Speeches/Hundt/spreh751.html

Statement of FCC Chairman Reed Hundt on Digital Television Before the U.S.
Senate Committee on Commerce, Science, and Transportation.
http://www.fcc.gov/Speeches/Hundt/spreh749.html

Assistant Secretary Larry Irving testified before the Senate Committee on
Commerce, Science and Transportation on the views of the Administration on
the transition to digital television
http://www.ntia.doc.gov/ntiahome/congress/91797dtvtest.htm

[For more on the Debate on the Future of Television see
http://www.benton.org/Policy/TV/]

*********************************************
* Mergers and Ownership *
*********************************************
Title: Westinghouse to Buy American Radio
Source: Wall Street Journal
http://wsj.com/ (A3)
Author: Timothy Aeppel & William Bulkeley
Issue: Mergers
Description: Westinghouse will buy American Radio Systems for $1.6 billion
and assumption of $1 billion in debt. The deal adds 98 stations into the
Westinghouse fold that now totals 175 stations. In the past 20 months, more
than one quarter of the nation's radio stations have changed hands.

Assistant Secretary Larry Irving spoke at the September 11 National
Association of Black Owned Broadcasters' Annual Meeting on "The Big Chill:
Has Minority Ownership Been Put on Ice?"
http://www.ntia.doc.gov/ntiahome/speeches/91197nabob.htm

*********************************************
* Competition *
*********************************************
Title: Eyeball to Eyeball: It's the Phone Man At the Door --
and He Has a deal on Cable TV
Source: Wall Street Journal
http://wsj.com/ (A1)
Author: Bryan Gruley
Issue: Competition
Description: In the suburbs of Detroit, Baby Bell Ameritech is starting to
build cable TV systems to compete with TCI. Customer love it as they can now
demand better service or take their business somewhere else. 87% of the
"multichannel video market" is controlled by local cable monopolies. The
Telecommunications Act of 1996 was supposed to end that, but the phone
companies that were supposed to provide the competition decided to
concentrate on their core businesses instead.

Testimony of FCC Chairman Reed Hundt on The 1996 Telecommunications Act: An
Anti-trust Perspective Before the U.S. Senate Committee on the Judiciary,
Subcommittee on Antitrust, Business Rights and Competition.
http://www.fcc.gov/Speeches/Hundt/spreh750.html

*********************************************
* Privacy *
*********************************************
Title: U.S. Inaugurating A Vast Database Of All New Hires
Source: New York Times (A1)
http://www.nytimes.com/library/cyber/week/092297child-support.html
Author: Robert Pear
Issue: Privacy
Description: As part of the 1996 welfare reform law, the Federal Government
will attempt to track parents who owe child support through a vast
computerized directory of new hires. Starting October 1, the Government will
collect names, addresses, Social Security numbers and wage information for
all people new to full- and part-time jobs with employers of every size.
Wage information will be updated every three months. The National Directory
of New Hires will be one of the largest, most up-to-date files of personal
information kept by the Government.

Title: On the Office PC, Bosses Opt For All Work, and No Play
Source: New York Times (A1)
http://www.nytimes.com/library/cyber/week/092297game.html
Author: Amy Harmon
Issue: Info Tech
Description: Those personal computers shouldn't be too personal, insist
employers. Both the Federal Government and the private sector are beginning
to crack down on computer games, recreational Web surfing, and personal
electronic mail. Employers worry that these activities will undermine the
productivity gains that PCs are supposed to bring to the office. Guess we're
back to Solitaire, magazine reading, and long distance calls during our
breaks. Critics worry that the information could be misused.

*********************************************
* Education Technology *
*********************************************
Title: Creative Tools Or Electronic Flashcards?
Source: Washington Post (WashTech p.19)
http://www.washingtonpost.com/wp-srv/WPlate/1997-09/22/014l-092297-idx.html
Author: Robert O'Harrow Jr. oharrowr( at )twp.com
Issue: Education Technology
Description: Parents asking educators for help picking education software
get many different answers. Some suggest packages that drill youngsters
endlessly on spelling, phonics, and math -- "drill and kill" software.
Others think computers should be used as tools for writing, Internet
research, and presentation. The debate on computer technology mirrors a
debate on the approach to education. O'Harrow concludes, "Until computers
become as smart and intuitive as teachers and parents -- or the children
themselves -- they can only supplement an education. [For more on
introducing computers to classrooms, see The Learning Connection at
http://www.benton.org/Library/Schools/]

*********************************************
* Philanthropy *
*********************************************
Title: How Turner Decided to Give Away $1 Billion
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Monica Langley
Issue: Philanthropy
Description: Media giant Ted Turner will give $1 billion -- about one third
of his "net worth" -- to the United nations. Its not clear which UN programs
will benefit or how exactly Mr. Turner will get the resources to the
beleaguered organization as he wants to preserve his 10% stake in Time
Warner: 95% of Turner's wealth is tied up in the company. Mr. Turner will
also turn to other super-rich executives to give as well: "I'm putting every
rich person in the world on notice that they're going to be hearing from me
about giving money."

At the FCC http://www.fcc.gov
Commissioner Chong Challenges Radio Broadcasters to Fight for First
Amendment Freedom http://www.fcc.gov/Speeches/Chong/sprbc712.html

Statement by FCC Chairman Reed Hundt on Need for Law to Guarantee that FCC
Can Reclaim and Reauction Spectrum Licenses From Licensees Who Default
http://www.fcc.gov/Speeches/Hundt/st970917.html

At the NTIA http://www.ntia.doc.gov
The Telecommunications and Information Infrastructure Assistance Program
(TIIAP) announces an important conference -- Networks for People: TIIAP at
Work. This conference is an opportunity to discuss, in person, the work
TIIAP has been doing in turning the dream of an information society into a
reality. Conference date: Tuesday, October 28, 1997 at 9:00 A.M. at the
Department of Commerce. http://www.ntia.doc.gov/otiahome/tiiap/event.html
*********