March 1998

Campaign Finance Reform
NYT: Vote On a Campaign Finance Bill Is Put Off After G.O.P. Defections
NYT: The Ebb and Flow of Reform
WP: Campaign Reform: Not The F.C.C's Business

Television
WSJ: BCI, Jones Intercable Hit Court as Cultural Wires Cross
FCC: Digital TV and Medical Telemetry Devices

Public Broadcasting
NYT: At Minnesota Public Radio. a Deal Way Above Average

Telephony
TelecomAM: Louisiana Regulator Says FCC Ignores State Opinions on Sec. 271
TelecomAM: FCC To Review Rules For Disabled Access To Phones

Internet
NYT: How to Govern Cyberspace: Frontier Justice or Legal Precedent?
WSJ: Gallic Passion for Minitel Thwarts L'Internet in France
NTIA: Technical Management of Internet Names and Addresses

Arts
NYT: New York State Conference Seeks to Join Arts and Technology

Antitrust
WP: U.S. May Fight Murdoch-MCI Satellite Plan
WP: Scrutiny of Microsoft Grows
NYT: Senators Ask Microsoft to Ease Data Release

Lifestyles!
WSJ: Paramount Is Hoping "Grease" Lighting Will Strike Twice

** Campaign Finance Reform **

Title: Vote On a Campaign Finance Bill Is Put Off After G.O.P. Defections
Source: New York Times (A1,A12)
http://www.nytimes.com/library/politics/032798gop-funds.html
Author: Alison Mitchell
Issue: Campaign Finance Reform
Description: House Republican leaders decided to put off a vote on campaign
finance reform on Thursday after they were unable to generate the support
needed to kill a bipartisan plan to rewrite the nation's election rules. The
Republican move signals that "at least for now a majority exists in the
House to pass an overhaul bill that would ban political parties from
accepting large unregulated donations known as soft money. The legislation,
which would also curb 'issue ads' by outside groups, is fiercely opposed by
Republican leaders, whose party generally has a fund-raising advantage."
Rep. Christopher Shays (R-CT), who is sponsoring the McCain-Feingold
legislation in the House along with Rep. Martin Meehan (D-MA), said: "The
bottom line is that McCain-Feingold would pass in the House because there
would be enough Republicans to join with the Democrats."

Title: The Ebb and Flow of Reform
Source: New York Times (A22)
http://www.nytimes.com/yr/mo/day/editorial/27fri1.html
Author: NY Times Editorial Staff
Issue: Campaign Finance Reform
Description: Yesterday, Newt Gingrich "yanked" campaign finance reform from
the House agenda. The Speaker's move came after aides were unable to round
up enough votes to block campaign finance reform legislation on the House
floor. Allies of Gingrich are reportedly planning to reschedule
"consideration of reform bills next month, but only under rules requiring a
two-thirds vote for approval. These desperation tactics are an abuse of
power reminiscent of conduct Mr. Gingrich himself deplored for years."

Title: Campaign Reform: Not The F.C.C's Business
Source: Washington Post (A25)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/27/040l-032798-idx.html
Author: John McCain (R-AZ)
Issue: Campaign Finance Reform
Description: Sen McCain is a strong advocate of free broadcast time for
political candidates and a principal sponsor of campaign finance reform
legislation. He is, however, opposed to the Federal Communications Commission
requiring broadcasters to provide free air time to political candidates.
"First, free air
time is only one factor in achieving real campaign finance reform. Would
[FCC Chairman] Kennard's proposal help even a little? I doubt it...the FCC
is the 'expert'
agency on telecommunications oversight, not electoral
oversight...Furthermore, administration of a free-time requirement without
clarifying legislation would present hosts of difficult practical problems
totally unsuited for an inexperienced and obviously partisan political
agency such as the FCC to resolve...Whether I personally agree with it or
not, the bottom line is that existing law does not permit, and a majority in
Congress would not favor, the FCC's imposing free-time requirements on
broadcasters without a legislative directive. Which brings me to the final
point: the clout of the broadcast lobby and its attempt to avoid paying in
any way for its spectrum. I was not pleased that the broadcasters got away
without paying one red cent for their new digital spectrum, but an
overwhelming majority of Congress felt differently. Still, this spectrum was
estimated to be worth up to $70 billion. Free political time wouldn't make
up for that loss, and neither would other kinds of new programming
rules...That's why in the final analysis it must be Congress -- not
noble-minded, self-anointed, unelected Washington policy wonks -- that
decides how this payment is to be rendered."

** Television **

Title: BCI, Jones Intercable Hit Court as Cultural Wires Cross
Source: Wall Street Journal
http://wsj.com/ (B4)
Author: Leslie Cauley
Issue: Corporate Retrenchment
Description: Like marriage, some mergers end in divorce. BCI -- owned by BCE
which also controls Bell Canada -- has filed suit against partner Jones
Intercable, the ninth largest cable operator in the US. In December 1993,
BCI paid $290 million for a 30% share of Jones Intercable. But Glenn Jones,
chairman and founder of Jones Intercable, has not included BCI executives in
the decisionmaking process. Wall Street is watching closely to see what
happens in court and if BCI will try to get out of the deal.

Title: Digital TV and Medical Telemetry Devices
Source: FCC
http://www.fcc.gov/healthnet/dtv.html
Issue: Digital TV/Health
Description: DTV Allotment Lists, a Joint FCC - FDA Statement, and a Fact
Sheet on the Sharing of Analog and Digital Television Spectrum by Medical
Telemetry Devices are now available from the new Digital TV and Medical
Telemetry Devices Section of the FCC Health Care Home Page. [And you thought
April Fool's Day was next week]

** Public Broadcasting **

Title: At Minnesota Public Radio. a Deal Way Above Average
Source: New York Times (C3)
http://www.nytimes.com/yr/mo/day/news/financial/public-radio-execs.html
Author: Reed Abelson
Issue: Public Broadcasting
Description: The for-profit sister company of Minnesota Public Radio, the
Greenspring Co., announced plans to sell its catalog business to Dayton
Hudson Corp. for an estimated $120 million. A large portion of the proceeds,
approximately $90 million, will be added to Minnesota Public Radio's
endowment. The "additional income generated will serve to replace the
contributions lost" due to the sale of the catalog business, which has
contributed about $4 million a year to Minnesota Public Radio in the past.

** Telephony **

Title: Louisiana Regulator Says FCC Ignores State Opinions on Sec. 271
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Louisiana Public Service Commissioner Jay Blossman Jr. told the
Senate Communications Subcommittee that some people at Federal
Communications Commission think state regulators are not "sophisticated
enough or bright enough to evaluate long distance applications."
Commissioner Blossman said the FCC ignored eight months of work by the PSC
when it rejected BellSouth's application to provide long distance despite
state regulators' OK. [They must think I'm some sort of country...] But
Texas Public Utilities Commission Chairman Pat Wood praised the FCC and said
the best way for Congress to help the Commission on Section 271 is "to leave
it alone."

Title: FCC To Review Rules For Disabled Access To Phones
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Disabilities
Description: At an open meeting of the Federal Communications Commission on
April 2, the agency will begin a rulemaking on implementing Section 255 of
the Telecommunications Act of 1996 -- access to phone services for persons
with disabilities. The rulemaking will include specific questions on how
rules will affect manufacturers' costs and how the FCC will enforce the rules.

** Internet **

Title: How to Govern Cyberspace: Frontier Justice or Legal Precedent?
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/cyberlaw/27law.html
Author: Carl S. Kaplan
Issue: Internet Regulation
Description: Jack Goldsmith, an associate professor at he Univ. of Chicago
School of Law and author of an upcoming law review article, "Against
Cyberanarchy," believes that "the Internet is just another communications
medium -- not too different from the telephone, the telegraph or smoke
signals." In a recent interview, Goldsmith said: "The important thing to see
is that there is nothing new about the Net...My aim is to show that contrary
to popular belief, there is nothing new under the sun." In the article,
which is expected to be "combative," Goldsmith attacks the "cyber-patriot"
viewpoint and "pours cold water on the notion that cyberspace is a 'place'
where self-government should rule almost exclusively. In addition, Goldsmith
argues that it is perfectly O.K. for governments to regulate the global
Internet -- as they do other border-shattering media -- in an effort to
prevent harmful effects on local citizens. The resulting clash of laws from
different jurisdictions can be sorted out by lawyers using traditional rules
of legal analysis."

Title: Gallic Passion for Minitel Thwarts L'Internet in France
Source: Wall Street Journal
http://wsj.com/ (B1)
Author: Kimberley Strassel
Issue: Old vs. New Media
Description: "After more than 15 years of the Minitel, a national computer
network that allows users to do everything from check weather forecasts to
order pizza, France has now officially acknowledged that the online future
lies with the globe-spanning Internet." But early adopters of Minitel are
hooked to the technology -- even though it is now out-dated. "We created the
killer application long before that term was invented," said a Minitel
developer (with a slight accent). "But now the question is, what do we do
with it?"

Title: Technical Management of Internet Names and Addresses
Source: NTIA
http://www.ntia.doc.gov/new.html
Issue: Internet Regulation
Description: The comment period for the Technical Management of Internet
Names and Addresses discussion draft
http://www.ntia.doc.gov/ntiahome/domainname/domainname130.htm has closed,
with over 650 comments received. All electronically filed comments received
on or before March 23, 1998 are available on the Comments Received web page
http://www.ntia.doc.gov/ntiahome/domainname/130dftmail/index.html. Several
additional comments received in paper form will be available online shortly.

** Arts **

Title: New York State Conference Seeks to Join Arts and Technology
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/26art.html
Author: Matthew Mirapaul
Issue: Arts
Description: Circuits( at )nys, the State of New York's first digital-arts
conference, began last night in Manhattan. The conference, which bears a
more formal subtitle: the Governor's Conference on Arts and Technology, is a
gathering of more than 600 electronic artists, administrators, educators and
business executives. The participants will be working for two and half days
in panels, workshops and demonstrations, considering ways for "the state of
art to become a greater part of the art of the state." Michael Royce, deputy
director of the New York State Council on the Arts, said: "This conference
is a meeting of the minds. We're bringing together the best and the
brightest from both the art world and the leaders of technology. We're
hoping to discuss how these two dynamic industries in New York can enhance
one another and possibly unite into something even more powerful."

** Antitrust **

Title: U.S. May Fight Murdoch-MCI Satellite Plan
Source: Washington Post (E1,E2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/27/086l-032798-idx.html
Author: Paul Farhi
Issue: Antitrust
Description: After almost eight months of investigation, government
antitrust officials are preparing to challenge Rupert Murdoch's News Corp.
and MCI Communications Corp.'s plans to merge their U.S. satellite TV
operations with Primestar Partners, the second-largest satellite TV company
in the nation, say sources familiar with the inquiry. According to these
sources, the Justice Department's telecommunications staff will soon
recommend that the merger be completely blocked or substantially modified.

Title: Scrutiny of Microsoft Grows
Source: Washington Post (E2)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/27/082l-032798-idx.html
Author: Elizabeth Corcoran
Issue: Antitrust
Description: Sens. Orrin G. Hatch (R-UT), Patrick J. Leahy (D-VT), Herb Kohl
(D-WI), and Mike DeWine (R-OH) requested yesterday that Microsoft, Netscape
Communications Corp. and Sun Microsystems Inc. provide the Senate Judiciary
Committee "with a letter that releases the three companies' business
partners from a standard agreement that requires the companies to inform
Microsoft, Netscape or Sun of any inquiries made by congressional
investigators."

Title: Senators Ask Microsoft to Ease Data Release
Source: New York Times (C5)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/27microsoft.html
Author: The Associated Press
Issue: Antitrust
Description: The Senate Judiciary Committee formally asked Microsoft on
Thursday to allow its business partners to provide the committee with
information without notifying the software maker. James Cullinan, a
Microsoft spokesman, said the company intended to work with the committee to
provide them with the information they requested but "protect our trade
secrets and confidential data."

** Lifestyles **

Title: Paramount Is Hoping "Grease" Lighting Will Strike Twice
Source: Wall Street Journal
http://wsj.com/ (B8)
Author: John Lippman
Issue: Lifestyles
Description: "Is 'Grease' still the word?" The 1978 musical hit will open in
2,000 theaters around the country tonight. With the cost of making a new
movie now in excess of $75 million, studios are checking their libraries to
see if they can make money off old ones. "Grease" cost $6 million to make
[1/5 was budgeted for hair gel] and grossed $360 million world wide. Are
audiences "Grease" saturated -- or will a whole new generation of kids flock
to theaters to hear "You're the One That I Want"?
*********
Paid subscribers, look for our bonus issue next week. Have a great weekend
-- wishing you Summer Nights.

Regulation
TelecomAM: Five Senators Tell Kennard That Internet Shouldn't Be Regulated
TelecomAM: White House Backs Flexible Requirement For Internet Filtering
TelecomAM: In Malta, Kennard Outlines 'Essential Ingredients' For Regulation
FCC: Building a Global Information Community for the 21st Century

Internet
WSJ: SEC Issues Guidelines For WebSite Creators Offering Securities
WSJ: Netscape Plans to Reorganize Division To Concentrate on Business
From Web
NYT: Baseball Joins the NBA and NHL with Online Broadcasts
NYT: Boy's Web Site Becomes a Domain Name Cause
WP: Sun Wins First Legal Squirmish With Microsoft Over Java
WSJ: Sun Wins Ruling Against Microsoft's Use Of Java as Similar H-P
Battle Looms

Universal Service
FCC: Second Quarter 1998 Universal Service Contribution Factor

Long Distance
TelecomAM: McCain: Kennard Letter Is 'Step Forward' But Lacks Specifics

Spectrum/Auctions
WP: Sprint PCS To Launch New Service
WSJ: Sale of Wireless Frequencies Looks Like A Bust

Television
FCC: Round Pegs in Square Holes
FCC: Digital TV Express
WSJ: General Instrument is Expected to Select Motorola, QED Chips for
Set-Top Box

International
NYT: Random House Sale Shakes Up Literary World
WSJ: Telus and AT&T In Canada Discuss A 'Combination'

** Regulation **

Title: Five Senators Tell Kennard That Internet Shouldn't Be Regulated
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Internet Regulation
Description: Five more senators have told FCC Chairman Kennard that one of
the Telecom Act's purposes was to prevent the Internet from being regulated.
In a letter dated Mar. 20, Sens. Spencer Abraham (R-MI), John Ashcroft
(R-MO), Wendell Ford (D-KY), John Kerry (D-MA) and Ron Wyden (D-OR) said
that of the FCC reverses course and subjects information services to phone
regulation, "it would chill the growth and development of advanced services
to the detriment of our economic and educational well-being." Senate
Appropriations Committee Chairman Ted Stevens (R-AK) has argued that,
because the Internet circumvents the switched network, it poses a danger to
universal service.

Title: White House Backs Flexible Requirement For Internet Filtering
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Universal Service/Internet Regulation
Description: The White House endorsed legislation that would require schools
and libraries receiving federal subsidies for Internet wiring to develop
plans to protect children from inappropriate content, Vice President Al Gore
said. But he said the Administration supports a version that "will empower
schools to make decisions based on local values" rather than taking "a
one-size-fits-all approach."

Title: In Malta, Kennard Outlines 'Essential Ingredients' For Regulation
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Regulation
Description: FCC Chairman Kennard used his first overseas speech as chairman
to tell telecom regulators that they should "take advantage of private
capital, drive development and innovation with competition and set up
transparent and independent regulatory regimes that will attract private
investment." These are the "essential ingredients" for achieving universal
access and universal service," he said. Regulators still "have a critical
role still to play in all of this," Kennard said. Although the gov't. is "no
longer suited" to provide services, "it must act as a guardian of
competition and a champion of new entrants in the market." To ensure
competition, regulators must be "independent of the incumbent operator" and
"shielded from political pressure."

Title: Building a Global Information Community for the 21st Century
Source: FCC
http://www.fcc.gov/Speeches/Kennard/spwek810.html
Author: FCC Chairman William E. Kennard
Issue: Regulation
Description: "The digital information age is profoundly changing the way we
communicate and the way we live our lives. It is transforming many aspects
of daily life -- from how we do business to how we teach our children and
administer health care. It is an engine of job creation and the lifeline of
the global economy. The ability of individuals, communities and nations to
participate in the global community will therefore increasingly be shaped by
telecommunications policy."

** Internet **

Title: SEC Issues Guidelines For WebSite Creators Offering Securities
Source: Wall Street Journal (B9A)
http://wsj.com/
Issue: Electronic Commerce
Description: The Securities and Exchange Commission has issued guidelines to
help foreign creators of World Wide Web sites avoid running afoul of U.S.
registration laws that govern the offer and sale of securities. The
guidelines were given preliminary commission approval last month, but
details were released yesterday. They form part of a wider-ranging effort by
the agency to come to grips with how securities laws apply to the Internet.
U.S. securities laws impose strict registration conditions on the offering
and sale of securities to U.S. investors. Because Web sites created by
foreign companies can be accessed by U.S. investors, regardless of whether
U.S. investors are targeted, they could theoretically fall under the SEC's
jurisdiction. The new guidelines are designed to apply only to Web sites and
not interactive communications such as e-mail.

Title: Netscape Plans to Reorganize Division To Concentrate on Business
From Web
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Kara Swisher
Issue: Corporate Retrenchment
Description: Netscape is expected to announce a reorganization today
creating a new division focusing exclusively on its Web-site business. The
move underscores the strategic and financial importance that Netscape
officials are placing on its popular Internet site. The division will be
headed by Mike Homer, who has long been in charge of sales and marketing at
the company. Under the new structure, Mr. Homer will become the executive
vice president and general manager of the Web division, which will include
group engineering, sales, marketing and other employees who will be devoted
exclusively to Netscape's World Wide Web presence.

Title: Baseball Joins the NBA and NHL with Online Broadcasts
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/25sport.html
Author: Chris Sandlund
Issue: Internet Content
Description: Major League Baseball will be joining the ranks of the National
Basketball Association and National Hockey League when it begins to
re-transmit radio feeds over the Internet for all 2,430 of this season's
games. Currently, both the NBA and NHL are in the midst of re-broadcasting
more than 1,000 games from this year's season. "We're averaging 500,000
unique listens per month," says Michele Mees, the NHL's manager of public
relations. "Displaces fans are the majority coming to the Internet for
games." Kevin Fitzpatrick, Major League Baseballs manager of new media notes
another market for day games. "It's also for the Cardinals fan who's in a
[downtown St. Louis] office building and can't pick up the feed."

Title: Boy's Web Site Becomes a Domain Name Cause
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/25pokey.html
Author: Jeri Clausing
Issue: Internet Domain
Description: Chris Van Allen, a 12-year-old boy from PA, has a Web site with
the domain "pokey.org," titled after his nickname since birth, Pokey. Yet
Prema Toy Co., who holds the trademarks to Gumby and Pokey, requested
yesterday that Network Solutions, the domain registry company, put
"pokey.org" on hold and said it intends to deactivate the domain which is
currently registered to Chris Van Allen, because Prema holds the federal
trademark to that name. This action has sparked concern among "Internet
factions" who fear with the "evolution" of Internet governance trademark
holders will be favored over those people who may have initially laid claim
to a domain name. The government plan, put together by Ira Magaziner,
President Clinton's Internet czar, does not suggest any solutions to
problems like Christopher's, but it does call for "further study of the
issues and development of international policy in this area that has divided
Internet interests around the world." Dave Van Allen, Christopher's father,
said the case illustrates how fragile the liability issues of domain
registration can be. "There is no legal precedent on this, and we're
certainly not looking to be the ones to set legal precedent," He said. "But
if we're the ones to make more people aware of this issue, than that's a
good thing."

Title: Sun Wins First Legal Squirmish With Microsoft Over Java
Source: Washington Post (C13)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/25/054l-032598-idx.html
Author: Rajiv Chandrasekaran
Issue: Legal Issues
Description: Sun Microsystems Inc. won the first round of a legal dispute
with Microsoft Corp. yesterday over the Sun developed Internet programming
technology called Java. U.S. District Judge Ronald H. Whyte in San Jose,
issued a preliminary injunction preventing Microsoft from inscribing its
software products with Sun's Java logo. The case began when Sun sued
Microsoft this past October alleging that Microsoft is violating terms of a
licensing contract with Sun by "altering Java technology that is included in
Microsoft's Windows computer operating system."

Title: Sun Wins Ruling Against Microsoft's Use Of Java as Similar H-P
Battle Looms
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Lee Gomes
Issue: Legal Issues
Description: Sun won a skirmish in its legal battle with Microsoft over the
Java computer language, while a possible confrontation looms with
Hewlett-Packard. U.S. District Judge Ronald Whyte ruled that Microsoft can't
use Sun's Java logo in any of its marketing material. Microsoft said it
would immediately comply with the order. The Microsoft ruling was a narrow
one, and said Microsoft wasn't required to make any change in its actual
Java software or its Java strategy. In fact, Microsoft said it plans to
continue to claim in its marketing materials that its software is "Java
compatible," but without using Sun's logo, said Tom Burt, an associate
general counsel at Microsoft.

** Universal Service **

Title: Second Quarter 1998 Universal Service Contribution Factor
Source: FCC
http://www.fcc.gov/Speeches/Furchtgott_Roth/Statements/sthfr812.html
Author: Commissioner Furchtgott-Roth
Issue: Universal Service
Description: "By taking no further action, the Common Carrier Bureau allowed
the proposed universal service contribution factors for the second quarter
of 1998 announced in the Public Notice released February 27, 1998, to go
into effect today. For a variety of reasons, I objected to these
contribution factors when released and continue to be concerned about the
Bureau's calculations. Because of these concerns and despite the fact that
the Commission may be able to resolve some of these issues in the upcoming
report to Congress as required by the 1998 appropriations legislation, Pub.
L. No. 105-119, I cannot support the universal service contribution factors
as established by the Bureau."

** Long Distance **

Title: McCain: Kennard Letter Is 'Step Forward' But Lacks Specifics
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: The FCC has taken a "significant step forward" by identifying
factors "relevant" to Bell companies' long distance applications, but hasn't
stated "what the carriers actually must do to meet each of those relevant
factors," Senate Commerce Committee Chairman John McCain (R-AZ) said. He
said Commission Chairman Kennard's response to Sen McCain's inquiry on the
Section 271 14-point checklist demonstrates that the agency has implemented
the process in a way that "demands that it conduct extremely detailed
evaluations of a host of complexities." Because the FCC has chosen to make
the application process so complex, Sen McCain said, "fundamental fairness"
requires it to articulate more precisely what "levels of compliance" are
needed to meet each of the "myriad requirements."

** Spectrum/Auctions **

Title: Sprint PCS To Launch New Service
Source: Washington Post (C11,C15)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/25/046l-032598-idx.html
Author: Mike Mills
Issue: Spectrum
Description: Sprint PCS will launch a new product in the DC-Baltimore area
today which will offer improvements over its current product, Sprint
Spectrum. The new product, called Sprint PCS, will allow customers to "use
the same all-digital Sprint network in 148 cities nationwide, with
relatively low uniform charges for 'roaming' with the phone outside this area."

Title: Sale of Wireless Frequencies Looks Like A Bust
Source: Wall Street Journal (A3)
http://wsj.com/
Author: John Simons
Issue: Spectrum
Description: As bidding winds to a close, the government's largest auction
of wireless frequencies is looking like a disappointment to the telecom
industry. The new technology uses ultrahigh-frequency microwave
transmissions as part of what is called local multipoint distribution
system, LMDS. A number of industry analysts expected telecom carriers to pay
close to $4 billion for licenses to a vast section of radio frequencies that
will allow them to provide inexpensive high-speed voice, video and Internet
connections. But as the bidding ends the auction's gross is a disappointing
$832 million. In any auction buyers naturally try to get the sale item as
cheaply as possible, but the stinginess of the telecom involved in the LMDS
auction is unusual, analysts say.

** Television **

Title: Round Pegs in Square Holes
Source: FCC
http://www.fcc.gov/Speeches/Powell/spmkp805.html
Author: Commissioner Michael K. Powell
Issue: Public Television
Description: "I am continually dismayed that in the debate about television
and its value, or potential, we still hear that T.V. is a wasteland of
mediocre programs, that T.V. has no educational value, that it has no
intellectual value, and that it is not stimulating. These people obviously
need to be introduced to their remote controls, for such programming does
exist, free and over the air, just down the dial on PBS. By any standard,
programs such as Ken Burn's Civil War and Baseball mini-series, Lewis &
Clark, the American Experience, Arthur and the venerable Sesame Street are
precisely the types of quality programs that many bemoan are missing in our
T.V. culture."

Title: Digital TV Express
Source: FCC
http://www.fcc.gov/Speeches/Ness/spsn805.html
Author: Commissioner Susan Ness
Issue: Digital TV
Description: "And as a long-time supporter of public broadcasting, I am
especially proud that PBS has taken a leadership role in shaping and
harnessing the enormous educational potential of digital television. Through
your commitment, tenacity and vision...public broadcasting is at the
forefront of the digital television revolution."

Title: General Instrument is Expected to Select Motorola, QED Chips for
Set-Top Box
Source: Wall Street Journal (B8)
http://wsj.com/
Author: Leslie Cauley
Issue: Cable/Set-Top Boxes
Description: General Instrument Corp. plans to announce that it has selected
Motorola and Quantum Effect Design to supply microprocessors for its new
advanced digital set-top TV devices, knocking Intel out of the running for
now. A third chip maker, Broadcom, has been picked to supply silicon
components that would be used to transmit movies, Internet and Internet
telephony, said David Robinson, VP of General Instrument's digital-network
systems unit. Tele-Communications Inc. recently announced plans to order as
many as 15 million of the new set-top boxes from General Instrument.

** International **

Title: Random House Sale Shakes Up Literary World
Source: New York Times (D1)4
http://www.nytimes.com/yr/mo/day/news/financial/random.html
Author: Doreen Carvajal with Geraldine Fabrikant
Issue: Merger
Description: Since the announcement of Bertelsmann AG's purchase of Random
House yesterday, those affiliated with the publishing industry have been
buzzing with concern over the "what if(s)...". The fact is that Bertelsmann
has a long history of book publishing and has "historically given companies
a tremendous amount of independence and local control." But over the past
few days, publishing figures have suggested that "the consolidation of the
major publishing houses into the world's largest English-language trade
publisher" could signal the acceleration of a relatively new trend. The
trend in mention is a reduction in advances to "midlist" authors who sell
fewer books than top authors with best-seller status. If this continues, the
result could make it increasingly difficult for the "nonstarts" to earn a
literary living. "When there are fewer and fewer publishers of scale, it's
just not good for authors," said Richard Ben Cramer, a Random House writer
who added that he feels depressed about the sale of the company by its
present owners, Advance Publications, a privately held company owned by the
Newhouse family. Bertelsmann executives have said that Random House was
particularly appealing to them because of its reputation for quality
publishing. Thomas Middelhoff, the chief executive-elect of Bertelsmann, has
also sought to downplay any concern over the foreign ownership of Random
House. "I believe that should not be a question," said Middelhoff.
"Bertelsmann works in more than 55 countries. I have only one objective, and
it is one of my priorities for the next 16 years, and that is to reduce a
little bit this German impact."

Title: Telus and AT&T In Canada Discuss A 'Combination'
Source: Wall Street Journal (A10)
http://wsj.com/
Author: Tasmin Carlisle
Issue: Mergers
Description: Telus Corp. said it is holding talks with AT&T's Canadian
affiliate regarding a "possible business combination" that, if realized,
could shake up Canada's telecom industry. The news release follows
speculation by analysts that Telus is preparing to offer as much as one
billion Canadian dollars (US$706 million) to purchase, from three Canadian
banks, a two-thirds stake in AT&T Canada, which is the maximum it is allowed
under Canadian regulations. Analysts said such a transaction could cause a
major realignment of interests within Canada's telecom industry. Currently
Telus is a member of Stentor, an alliance of the country's 10 biggest and
longest-established telephone companies, which competes with such upstarts
as AT&T Canada in the country's long-distance phone market.
*********

FCC
NYT: All Too Soon, New F.C.C. Chief Finds Warm Welcome Is Cooling

Free Time/Campaign Finance Reform
B&C: Republicans punt on free-airtime block
B&C: Senators give Kennard grief over plans for free airtime
WP: In Calif. Primary, It's TV Time
NYT: Campaign Finance Charades

Television
B&C: FCC to spot-check kids TV commercials
B&C: "Seinfeld" raises bar for syndicators

Ownership
B&C: Kennard looks to restart minority push

Radio
WP: Ready to Launch a Global Radio Network

Long Distance
TelecomAM: Kennard To Send Hill A Roadmap On 14-point Checklist
TelecomAM: Local, Long Distance Carriers Split On MCI
Access Charge Petition
WSJ: SBC's Plan to Expand Long-Distance Service
Stumbles in Oklahoma

Internet
TelecomAM: Ebbers Says Worldcom Doesn't Expect to Give
Up Internet Backbone
TelecomAM: Rep. Cox and Local Officials Agree On Revised
Internet Tax Freedom Act
NYT: A Benign Declaration Treated as Revolutionary
NYT: Concerns Raised by Unregulated Drug Sales on Web
NYT: Business Ethics on the Web
WP: Checking Out the Internet on the Road

Privacy/Security
TelecomAM: Industry Says It Would 'Understand' Letting
FCC Arbitrate CALEA

** FCC **

Title: All Too Soon, New F.C.C. Chief Finds Warm Welcome Is Cooling
Source: New York Times (D1,D4)
http://www.nytimes.com/yr/mo/day/news/financial/fcc-problems.html
Author: Seth Schiesel
Issue: FCC
Description: When William Kennard, chairman of the Federal Communications
Commission, was appointed to his position last fall, there was great optimism
that he would enable the Telecommunications Act of 1996 to be carried out in
an efficient and effective manner. But starting this week, a Senate
sub-committee is opening hearings on the FCC's handling of some of the Act's
key provisions. Chairmen Kennard admitted in an interview on Friday, "There
is an
increasing anxiety about the telecom act and what results it's producing."
But he also stated, "I think the anxiety in the marketplace means things are
happening." Scot Cleland, a communications-policy analyst in Washington for
Legg Mason Precursor Group, said, "The telecom act sets up the FCC as the
fall guy." Cleland added, "Now they are besieged...They are in a no-win
situation."

** Free Time/Campaign Finance Reform **

Title: Republicans punt on free-airtime block
Source: Broadcasting&Cable (p.21)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Free Time for Candidates
Description: The Clinton Administration won the latest round in the battle
over free air time for candidates. Senate Appropriations Committee Chairman
Ted Stevens (R-AK) did not include a measure that would have prevented the
FCC from spending money to create or enforce a rule requiring free airtime
for politicians. Sen. John McCain (R-AZ) and Sen. Conrad Burns (R-MT)
"remain vehemently opposed to an unelected agency mandating free TV time"
and plan on adding the restriction on the FCC to other legislation. Sen
Joseph Lieberman (D-CT) said, "The Senate has failed to adopt campaign
finance reform. Will we now try to stop other agencies of the government
from doing so?"

Title: Senators give Kennard grief over plans for free airtime
Source: Broadcasting&Cable (p.20)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Free Time for Candidates
Description: "You have a big enough headache with the transition to digital
television, and a big enough headache implementing the Telecommunications
Act, without wandering afar into freetime...You need to restrict yourself to
doing the job we give you," said Sen Ernest Hollings (D-SC) to FCC Chairman
William Kennard during a Senate committee hearing last week. Senate
Appropriations Committee Chairman Ted Stevens (R-AK) added, "I think that if
the FCC can't learn the power of the law and the construction of the law,
then we ought to get a new mechanism." A spokeswoman for Chairman Kennard
said, "We still plan to go ahead [with the inquiry] sometime this spring."
The FCC make take up the issue at its April 2 meeting.

Title: In Calif. Primary, It's TV Time
Source: Washington Post (A11)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/23/056l-032398-idx.html
Author: Ceci Connolly
Issue: Campaigns
Description: In California, two Democratic candidates, Rep. Jane Harman and
businessman Al Checchi, have promised to spend whatever it takes for a
"blockbuster" gubernatorial campaign. After about seven weeks in the race,
Rep. Harman is in the lead after buying $3 million of television commercials.
Mr. Checchi is 2 points behind after purchasing $14 million of commercials with
his own money. Lt. Gov. Gray Davis, will save most of his estimated $5
million budget for the few weeks before the June 2 primary. "I think it's
great [that] people can become wealthy in this country," Lt. Gov. Davis told
Democrats at a state convention. "But I know two things: First, your vote is
not for sale. And second, I offer the voters a wealth of public service
experience that no amount of money can buy."

Title: Campaign Finance Charades
Source: New York Times (A20)
http://www.nytimes.com/yr/mo/day/editorial/23mon1.html
Author: NYTimes Editorial Staff
Issue: Campaign Finance Reform
Description: Speaker of the House Newt Gingrich has scheduled a vote on
"sham legislation set up to look like reform," with no opportunity for
members to vote on the real reform. It appears clear that the Republican
leadership is dedicated to "thwarting" the majority that sees the "hypocrisy
of doing nothing after a year of denouncing the campaign excesses of 1996."
In an effort to repel Democrats, the Speaker has attached a "watered-down"
soft-money ban to an anti-labor provision. Newt Gingrich knows if he allowed
a clean vote on reform -- pushed into the House by Representatives
Christopher Shays (CT) and Marty Meehan (MA) -- it would win. So instead he
is making it impossible to "strip away' the anti-labor measure. "The union
provision, which would require members to approve the spending of their dues
for political purposes, commands support among Republicans eager to punish
labor for targeting their party in the last campaign. There is no comparable
proposal to allow shareholders to give approval of corporate spending on
politicians, most of whom happen to be Republicans." In a vote this week,
supporters of reform hope to have the Shays-Meehan bill separated from the
anti-labor provision. If the Democrats stand firm and around 15 Republicans
join them in voting against Mr. Gingrich's "anti-reform scheme," they should
be able to defeat the Speaker's "trick." "At least 40 Republicans have
endorsed reform in the past, and they should do so now."

** Television **

Title: FCC to spot-check kids TV commercials
Source: Broadcasting&Cable (p.22)
http://www.broadcastingcable.com/
Author: Paige Albiniak
Issue: Children's Television
Description: In the wake of a report released earlier this month that found
that 28% of 265 television stations fail to comply with Federal
Communications Commission rules concerning the amount of advertising during
children's programming, the FCC plans random audits of stations around the
country. The rules limit commercial time to 10.5 minutes per hour on
weekdays and 12 minutes per hour on the weekends during children's shows.
Rep. Edward Markey (D-MA), the author of the Children's Television Act of
1990, said last week, "The FCC's prompt response to my inquiry and Chairman
Kennard's interest in pursuing this problem vigorously with the broadcast
community are most welcome. Children are a uniquely vulnerable target
audience for advertisers."

Title: "Seinfeld" raises bar for syndicators
Source: Broadcasting&Cable (p.8)
http://www.broadcastingcable.com/
Author: Joe Schlosser
Issue: Television Economics
Description: Last week, Columbia TriStar Television Distribution sold
off-network rights to the second cycle of "Seinfeld" for a record $300,000
per week. "Let the floodgates open," said one media executive. "Now that the
Seinfeld deal has happened, there is a pent-up [group] of shows that now
rush out into the marketplace searching for those top dollars too." [See
also B&C p.10 "WNYW pays $300,000 for 'nothing'" by Joe Schlosser]

** Ownership **

Title: Kennard looks to restart minority push
Source: Broadcasting&Cable (p.22)
http://www.broadcastingcable.com/
Author: Chris McConnell
Issue: Minorities/Ownership
Description: Speaking at a Rainbow/PUSH Coalition meeting last week, FCC
Chairman Bill Kennard promised "to complete a proceeding to explore new
incentives to promote minority media ownership." Chairman Kennard is
interested in restoring the tax certificate program and tailoring it so that
it benefits only bona fide minority ventures. He is also interested in
establishing a low-power radio service "so that small businesses and
churches and community groups can use the airwaves to broadcast to their
communities." Broadcast industry leaders have already announced that they
oppose such a system.

** Radio **

Title: Ready to Launch a Global Radio Network
Source: Washington Post (Bus.Section-pgs5,6)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/23/014l-032398-idx.html
Author: Mike Mills
Issue: International/Radio
Description: In September of this year, Noah Samara, founder of WorldSpace
Inc., plans to launch AfriStar, the first of three WorldSpace satellites to
go into orbit 22,300 miles above central Africa. The next two, AsiaStar and
AmeriStar, will go into orbit over Asia and the Americas next year. These
satellites will provide people living mostly in underdeveloped areas that
cannot currently pick up a radio station, access to 75 channels of
digital-quality music, news and other information from around the globe
through a $200 radio. Samara estimates that 300 million of these people can
and will pay the price of the radio, and he predicts the price will fall as
the service takes off. "My concern is not whether I can make this a
business," said Samara. "It's how to make it a phenomenon." Thomas Watts, a
satellite industry analyst for Merrill Lynch in New York, said "WorldSpace
serves a very large potential market for consumer products that cannot be
reached by any other advertising medium." And Leslie Taylor, a Washington
DC-based satellite industry consultant, said "I think that once he gets any
kind of significant penetration, even as low as 20,000 or 30,000 users, he's
going to start attracting a lot more interest among program suppliers."
Samara, who grew up in Ethiopia and Tanzania, has long been interested in
what it would take to help Africa raise out of what he called its state of
"dormancy." His conclusion, he said, was that "access to information is the
necessary condition for development." Samara's concerns go "beyond the
bottom line, he hopes that WorldSpace will help to plant the seeds of a
pan-African consciousness."

** Long Distance **

Title: Kennard To Send Hill A Roadmap On 14-point Checklist
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance/Competition
Description: After two weeks of frantic work, the FCC is ready to send
Congress 30 to 40 pages of documents that detail what Bell companies must do
to satisfy the Commission's 14-point competitive checklist for long distance
approval. Commerce Committee Chairman John McCain (R-AZ) and Sen. Brownback
(R-KS) asked FCC Chairman Kennard earlier this month to provide Congress
with a more detailed explanation of what Bell companies must do to win FCC
approval to enter the market.

Title: Local, Long Distance Carriers Split On MCI Access Charge Petition
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: The giants of the local and long distance markets are at it
again, this time over an MCI petition to change the way the FCC reduces
access charges. GTE and the Bell companies attacked the filing as "moot,
premature, repetitive [and] frivolous." Meanwhile, long distance companies
said the FCC should prescribe access charge reductions because the local
competition that was supposed to drive those rates down "has not developed."
MCI's "emergency" petition filed last month asked the FCC to mandate the
amount of money that long distance carriers must pay local companies for
access to their networks, rather than allow markets to reduce them.

Title: SBC's Plan to Expand Long-Distance Service Stumbles in Oklahoma
Source: Wall Street Journal (B5)
http://wsj.com/
Issue: Long Distance
Description: A federal appeals court upheld the government's rejection of a
plan by SBC to offer long-distance telephone service in Oklahoma. The ruling
by the U.S. Court of Appeals for the D.C. Circuit deals a setback to several
regional Bell companies trying to expand into long distance markets. The FCC
last year rejected SBC's Oklahoma application, finding that the company
hadn't met its obligation under the 1996 Telecom Act to open its local
network to competitors. Since the rejections, SBC has continued applying for
permission to offer long distance in Texas, Arkansas, and Kansas while
renewing its Oklahoma application.

** Internet **

Title: Ebbers Says Worldcom Doesn't Expect to Give Up Internet Backbone
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Infrastructure/Mergers
Description: Worldcom doesn't expect to give up its Internet backbone
network or any other Internet services as a condition for winning Justice
Dept. approval for its merger with MCI, CEO Bernard Ebbers told Wall Street
analysts. He said he expects to hear from the DOJ "in a couple of weeks to
help the company understand "what the barometer is saying." Ebbers said
government concerns about local and long distance market issues appear to
have been eased by DOJ lawyers' meetings with Worldcom.

Title: Rep. Cox and Local Officials Agree On Revised Internet Tax Freedom Act
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Electronic Commerce/Internet Regulation
Description: Rep. Christopher Cox (R-CA) and state and local officials
including the National Governors Assoc. (NGA) have agreed on a revised
version of the Internet Tax Freedom Act. Rep Cox said the changes, which include
reducing a moratorium on new taxes on Internet access and "discriminatory"
taxation of online transactions to three years from six and grandfathering
some existing Internet taxes, will allow the bill to pass the House "with
overwhelming support" before Easter. Other changes include the creation of a
"Commission on Internet Commerce," composed of 29 representatives of state,
local and federal governments and business and consumer interests.

Title: A Benign Declaration Treated as Revolutionary
Source: New York Times
http://www.nytimes.com/library/tech/98/03/biztech/technology/23techcol.html
Author: Edward Rothstein
Issue: Internet
Description: A group of high-profile, youngish Internet advocates decided
that views of technology and the Internet had been skewed toward extremes.
On the one hand, the Internet is treated as the electronic frontier, the
hope of humankind, the harbinger of a coming utopia. On the other hand, this
high-technology nexus has seemed to be a home for pornography and perversion
populated by sexual predators, a fitting example of the evils of unfettered
technology. In response to these views, the dissidents wrote a manifesto
calling for "technorealism" and calling themselves technorealists. This
manifesto, at http://www.technorealism.org, rejects the "louder voices at the
extremes" in favor of a more balanced consensus, a "fertile middle ground
between technoutopianism and neo-Luddism."

Title: Concerns Raised by Unregulated Drug Sales on Web
Source: New York Times
http://www.nytimes.com/library/tech/98/03/biztech/articles/23pharmacy.html
Author: Stacy Lu
Issue: Internet Commerce/Health
Description: The unregulated atmosphere of the World Wide Web may be a boon
to the First Amendment, but the international medical community might argue
that freedom has its limits. The online promotion and sale of medicines and
dietary supplements have health and consumer groups scrambling for
regulation. International drug sales have never been simple, and the Web
further complicates the situation. A prescription drug in one country may be
a nutritional supplement in another, for example. Disclaimers and disclosure
info vary from country to country, as does sales licensing. Meanwhile, the
Web has increased the potential for medical fraud. Although difficult to
quantify -- no agency or organization tracks online drug sales -- much of
the trade is in experimental and unproven substances.

Title: Business Ethics on the Web
Source: New York Times
http://www.nytimes.com/library/tech/yr/mo/biztech/sites/23sites.html
Author: Sreenath Sreenivasan
Issue: Internet/Ethics
Description: The World Wide Web isn't exactly a haven for good business
ethics. Naturally, those who study business ethics worry about the Web.
"Every possible abuse of integrity and decency takes place on the Web," said
Laura Pincus Hartman, director of the Institute for Business and
Professional Ethics at DePaul Univ. in Chicago. Randy Pennington, an ethics
consultant based in Dallas, said there was "a sense that moral and ethical
values are not important" on the Web. But that does not surprise him. "There
is no standardization in technology on the Web, so why do we expect
standardization in behavior?" he said. The Netcheck Commerce Bureau is one
attempt at self-regulation. The agency maintains a list of companies
involved in electronic commerce. Visitors to Netcheck's site can register
consumer complaints about anything from unsolicited e-mail to copyright
disputes. The site's philosophy is that "public pressure is the only real
deterrent in this new frontier."

Title: Checking Out the Internet on the Road
Source: Washington Post (Bus.Section-pgs16,18)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/23/024l-032398-idx.html
Author: William Casey
Issue: Libraries/Access
Description: Many of the nation's 10,000 libraries have added the Internet
to their information offerings. After the author conducted an unscientific
sample by visiting more
than three dozen libraries in 14 states, he found that no two libraries
provide the same access or have the same policies when it comes to patrons
seeking "cyberspace access." He found that 80 percent of the libraries he
visited offered some kind of Internet access. But many have just recently
hooked up to the Internet and about a third only offered access on a single
computer terminal. Casey found that many libraries have a time limit of 30
minutes and require the user to first sign some type of document. Most of
these forms seek to "limit liability on the part of the library for your
use, restrict your online exploration to non- 'obscene' sites, or both."
Overall he found librarians to provided him with the "kind of treatment that
follows in the best tradition of a public library" and this area to be a
growth sector that is improving its resources weekly.

** Privacy/Security **

Title: Industry Says It Would 'Understand' Letting FCC Arbitrate CALEA
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Privacy/Security
Description: Because of "unreasonable" demands by the FBI, the telecom
industry "would understand" if Attorney General Janet Reno decides to let
the FCC arbitrate the dispute over what constitutes compliance with the
Communications Assistance for Law Enforcement Act (CALEA). The heads of the
Cellular Telecommunications Industry Assoc., Personal Communications
Industry Assoc., Telecommunications Industry Assoc. and U.S. Telephone
Assoc. said they still are willing to participate in a 60-day pricing
exercise and "gladly accept" Reno's offer to further clarify the FBI's
position.
*********

FCC
TelecomAM: FCC's Actions Hurt Funding Chances, Senate Panel Tells Kennard
TelecomAM: Bell Atlantic and SBC Praise FCC On Long Distance Process

Television Economics
NYT: A Family Circle Breaks: Murdoch Owns Dodgers
NYT: Steinbrenner Discussed Selling Piece of Yankees
NYT: Yanks Would Bolster Cablevision's Empire
NYT: BBC and Discovery to Develop Programming Together

Lobbying
NYT: Labor Asks Members to Fund $13 Million Political Effort
NYT: Database of Lobbyists Sheds Light on Big Spenders

Philanthropy
NYT: Alumni Pledge $10 Million to a Public High School

Internet
NYT: Drudge Case Takes on Issue of Liability
WSJ: Postal Service's 'Snail Mail' Meets E-Mail as Internet Shops Are
Targeted
WP: Governors Back 3-Year Ban on Internet Taxes

Encryption/Privacy
WSJ: Network Associates Will use Dutch Unit To Circumvent Encryption
Export Rules
NYT: Export Laws Challenged by Sale of Encryption Software Abroad
TelecomAM: USTA's Neel Says CALEA Negotiations Have Stalled

Mergers
WSJ: Motorola to Boost Stake in NetSpeak, Purchase Its Software
WSJ: Merger Talks Between At-Home Corp., Time Warner Unit Are Off
for Now

** FCC **

Title: FCC's Actions Hurt Funding Chances, Senate Panel Tells Kennard
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: FCC/Regulation
Description: Federal Communications Chairman William Kennard got a
tongue-lashing from the Senate Appropriations Committee's Commerce
Subcommittee. "We set policy, you administer," said Sen. Ernest Hollings
(D-SC). He said the FCC seems "take its edict" directly from the Clinton
Administration and is setting its own agenda on such issues as wiring
schools and libraries and free time for political candidates. Senate
Appropriations Chairman Ted Stevens (R-AK) said the FCC seems intent on
seeing "how far it can stretch" Congress' intent and is "making a case" for
Members of Congress who want to destroy the agency. Subcommittee Chairman
Judd Gregg (R-NH) said universal service should be "just that -- serving
rural areas." Chairman Kennard defended the FCC's actions on universal
service -- ensuring the senators that the funds for schools and libraries
and those for the high-cost fund come from different places and "don't
affect" each other. He also said Schools & Libraries Corp head Ira Fishman
is doing the best job possible so far.

Title: Bell Atlantic and SBC Praise FCC On Long Distance Process
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Long Distance
Description: Bell Atlantic and SBC expect to offer long distance service in
one or more of their states by year-end, citing the new cooperative attitude
of the FCC and rapidly increasing local competition, executives of both
companies told analysts. SBC CEO Edward Whitcare said he expected to be in
"some or all" seven states this year, after planning to file at all state
agencies by June or July. Whitcare credited a string of U.S. District Court
decisions against the FCC for the new attitude, but he also gave credit to
the new commissioners, especially Chairman Kennard for what he said was a
more open attitude toward the applications: "Our rapport with the FCC is
better than it has been in a long, long time."

** Basaball Been Berry Berry Good to Me **
(Lighten up. Its spring and the Cubs are still in first place.)

Title: A Family Circle Breaks: Murdoch Owns Dodgers
Source: New York Times (C21)
http://www.nytimes.com/library/sports/baseball/032098bbo-dodgers-sale.html
Author: Murray Chass
Issue: Television Economics
Description: Baseball owners approved the sale of the Los Angeles Dodgers to
Rupert Murdoch's Fox Group for $311 million. Fox Group's parent company,
News Corp, now has an interest in the Dodgers, the national rights to major
league games, and local media right of 22 major league clubs. One owner
said, "[News Corp] made very strong statements that they would operate each
of these businesses separately." The O'Malley's were the last of the family
owners in baseball and Walter O'Malley broke my father's heart when he moved
the club from Brooklyn before the 1958 season.

Title: Steinbrenner Discussed Selling Piece of Yankees
Source: New York Times (A1)
http://www.nytimes.com/library/sports/baseball/032098bba-yanks-sale.html
Author: Murray Chass
Issue: Television Economics
Description: On the day that baseball owners approved the sale of the Los
Angeles Dodgers to Rupert Murdoch's Fox Group, New York Yankees' owner
(King) George Steinbrenner announced that he has had talks about selling a
portion of the legendary franchise to Cablevision Systems Corporation.The
television and sports company already owns the New York Knicks and Rangers.
Media companies are purchasing teams in a variety of sports because the
teams prove to be "vital anchors to their programming business." [See also
NYT (C22) "Yanks Would Bolster Cablevision's Empire"
http://www.nytimes.com/library/sports/baseball/032098bba-yanks-suiter.html
][Cone to start home opener.]

Title: BBC and Discovery to Develop Programming Together
Source: New York Times (C2)
http://www.nytimes.com/yr/mo/day/news/financial/tv-bbc-discovery.html
Author: Lawrie Mifflin
Issue: Mergers
Description: The British Broadcasting Company and Discovery Communications
have announced a $565 million alliance to create new programs and cable
channels around the globe. Discovery will invest 1) $290 million in new
channel development, 2) $175 million in documentary programs produced or
co-produced by BBC, and 3) $100 million to start BBC America to be available
to American cable operators on March 29. BBC America will be a network of
drama, comedy and news programs including four daily live half-hour news
broadcasts from BBC World news service. BBC World will try to make deals
with other commercial outlets and PBS in hopes of being available in the
colonies 24 hours a day. [Call your cable operator and say, I want my BBC.]

** Lobbying **

Title: Labor Asks Members to Fund $13 Million Political Effort
Source: New York Times (A12)
http://www.nytimes.com/yr/mo/day/news/national/afl-cio-meeting.html
Author: Steven Greenhouse
Issue: Lobbying
Description: The leaders of the AFL-CIO have voted to create a $13 million
"mobilization" fund to help pro-labor candidates get elected, pro-labor
legislation to be passed, and to defeat a California referendum that would
restrict the use of union dues for political activity without prior,
specific approval of members. The $13 million fund -- $1 for each AFL-CIO
member -- would be an addition to the $15 million the organization has
already approved for political activity this year. [Hey, maybe we can have
parallel legislation that gets prior approval from each stock holder, too.]

Title: Database of Lobbyists Sheds Light on Big Spenders
Source: New York Times (CyberTmes)
http://www.nytimes.com/library/tech/98/03/cyber/articles/20lobby.html
Author: Rebecca Fairley Raney
Issue: Lobbying
Description: The Center for Responsive Politics (CPR) is making available
over the Internet a database of the lobbying efforts in Washington. of
individuals and organizations. CPR already has a searchable database on
campaign contributions. "We're broadening our scope to say money in politics
doesn't involve just campaign contributions," said the center's webmaster. A
new CRP report shows that lobbying is a $1.2 billion industry. See
http://www.crp.org for more information.

** Philanthropy **

Title: Alumni Pledge $10 Million to a Public High School
Source: New York Times (A23)
http://www.nytimes.com/yr/mo/day/news/national/highschool-gift.html
Author: Jacques Steinberg
Issue: Philanthropy
Description: Alumni of the Brooklyn Technical High School have pledged to
raise $10 million to establish a university-style endowment for one of New
York's most selective and prestigious public schools. The endowment could
generate as much as $800,000 per year for the school. The alum heading the
effort is Leonard Riggio, chairman of Barnes & Noble. Ironically, Schools
Chancellor Rudy Crew, who welcomed the unsolicited gift yesterday, spurned a
group of elementary school parents who raised $46,000 last year to pay the
salary of a teacher in hopes of reducing class size.

** Internet **

Title: Drudge Case Takes on Issue of Liability
Source: New York Times (CyberTimes)
http://www.nytimes.com/library/tech/98/03/cyber/cyberlaw/20law.html
Author: Carl Kaplan
Issue: Internet Content
Description: The $30 million libel suit filed by Sidney and Jacqueline
Blumenthal against Matt Drudge will address the possibility of liability of
the case's co-defendant, America Online. The online service posted the
disputed column. The Blumenthal's lawyers want AOL held to the same standard
that the Washington Post would have been if it had published the story. A
decision on AOL's liability is expected in four to six weeks.

Title: Postal Service's 'Snail Mail' Meets E-Mail as Internet Shops Are
Targeted
Source: Wall Street Journal (B7A)
http://wsj.com/
Author: Anthony Palazzo
Issue: Internet Commerce
Description: Camped out at last week's Internet World trade show was the
U.S. Postal Service, hawking -- of all things -- "snail mail." That quaint,
yet patronizing, term implies that old-fashioned mail is a relic in this era
of instant messaging and online chat. So what was the Postal Service doing
at the trade show? Trying to capitalize on a budding opportunity,
post office reps said. "These people are trying to do commerce on the
Internet. They want to be successful, and they are," said Danny Lopez,
tactical marketing specialist for the Postal Service. At Internet World, the
spotlight was on shipping services. The post office reckons it offers
cheaper rates than its largest competitors, UPS and Federal Express. The
postal service has also made itself a more attractive choice by improving
its on-time rates under Postmaster General Marvin Runyon, who's retiring
this spring. Services have been expanded to include business-customer
pickups and shipping boxes customized for Postal Service customers.

Title: Governors Back 3-Year Ban on Internet Taxes
Source: Washington Post (F3)
http://www.washingtonpost.com/wp-srv/WPlate/1998-03/20/123l-032098-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Regulation
Description: The nation's governors agreed to support a three-year ban on
special Internet commerce taxes in exchange for a promise by Congress to
consider requiring electronic merchants to collect sales taxes after the
moratorium. The Nat'l Governors Assoc. had opposed bipartisan legislation in
the House and Senate to enact an Internet tax moratorium, saying the freeze
could deprive state and local governments of crucial tax revenue as
electronic commerce becomes popular. The governors' disapproval threatened
to scuttle the bills. Industry groups contend that imposing sales taxes on
Internet transactions will slow the growth of electronic commerce and make
it less appealing to consumers.

** Encryption/Privacy **

Title: Network Associates Will use Dutch Unit To Circumvent Encryption
Export Rules
Source: Wall Street Journal (B7)
http://wsj.com/
Author: David Bank
Issue: Encryption
Description: Network Assoc. said it will skirt U.S. export restrictions on
strong encryption technology by selling data-security software to
international customers from a Dutch subsidiary, a move likely to draw close
gov't. scrutiny. Execs at Network Assoc. said they developed the plan to
meet demands from global customers to protect the confidentiality of e-mail
without providing law-enforcement agencies with the means to monitor the
communications (slick... but not slick enough!). The U.S. Commerce Dept.,
concerned about the potential abuse of encryption technology by terrorists
and drug traffickers, has made the inclusion of such provisions a condition
of granting exceptions to the export ban, except for certain customers, such
as banks.

Title: Export Laws Challenged by Sale of Encryption Software Abroad
Source: New York Times (C1)
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/20encrypt.html
Author: John Markoff
Issue: Encryption
Description: Network Associates has announced that it will allow its Dutch
subsidiary to begin selling an international version of Pretty Good Privacy
(PGP). The data-scrambling software does not provide a "back door" for law
enforcement surveillance. "This is the biggest challenge yet to the US
policy," said an industry analyst. "It has a tremendous consumer base." The
Clinton Administration is starting to get pressure from Republicans to end
the export ban on encryption software.

Title: USTA's Neel Says CALEA Negotiations Have Stalled
Source: Telecom AM
http://www.telecommunications.com/am/
Issue: Privacy
Description: Negotiations between the FBI and the phone industry on
implementation of the Communications Assistance for Law Enforcement Act
(CALEA) have installed and the situation undoubtedly will end up in the
FCC's lap, U.S. Telephone Assoc. President Roy Neel told reporters at a
media lunch. Neel said negotiations broke down because of the FBI's
insistence on adding a "punch list" of expanded capabilities not authorized
by CALEA and the phone industry's concern that the October deadline can't be
met, even if an agreement were reached now. He said money issues also play
an important part in the dispute, particularly how the additional
capabilities on the "punch list" would be funded. "There's no way the
industry can implement the changes sought by the Dept. of Justices within
the $500 million appropriated," Neel said.

** Mergers **

Title: Motorola to Boost Stake in NetSpeak, Purchase Its Software
Source: Wall Street Journal (B7)
http://wsj.com/
Issue: Merger/Investment
Description: Motorola said it intends to boost its stake in NetSpeak to
nearly 35% and said it will buy a minimum of $30 million in software over
several years from the firm, which specializes in technology for telephone
services over the Internet. The investment heats up the race among
telecommunications and data networking firms to provide traditional voice
communications and new multimedia services over the Internet. NetSpeak's
products include "gateway" software that transports calls using Internet
Protocol, or IP. Due to the unregulated nature of the 'Net, using the global
network for phone calls can significantly slash long-distance charges for
consumers, though the quality of conversation is often poor.

Title: Merger Talks Between At-Home Corp., Time Warner Unit Are Off for Now
Source: Wall Street Journal (B7)
http://wsj.com/
Author: Leslie Cauley
Issue: Mergers
Description: Merger talks are off for now between At-Home Corp. and Road
Runner, the two leading cable-TV-owned Internet services, people familiar
with the matter say. The various parties were unable to agree on valuation,
control and other issues. At-Home's owners also have been talking to AT&T
about the phone giant's investing in At-Home. AT&T's investment in the
high-speed Internet-access service were largely contingent on At-Home
successfully merging with Road Runner, which itself is in the process of
merging with U S West's MediaOne Express service.
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We are outta here. Happy Fri-Return of the Smart*ss-day. Have a great weekend!