September 1998

ACCESS
TIIAP Grants (NTIA)
Two-Way Digital ITFS and MDS Communications (FCC)

CABLE
Liberty Media Unit Is Set to Develop Interactive Cable (WSJ)

LOBBYING
The Business of Persuasion Thrives in Nation's Capital (NYT)
Satellite Industry Lobbies to Save a Tax Credit (WSJ)

MERGERS
FCC may be a roadblock for Ameritech (ChiTrib)
S.E.C. Crackdown on Technology Write-Offs (NYT)

REGULATION
FCC Says Qwest-Bell Company Deals Violate Telecom Act (TelecomAM)
FCC Blocks Two Bells on Long Distance Entry (NYT)
FCC Rejects Alliance of Qwest, Two Bells (WSJ)
Neither LECs Nor CLECs Like FCC Advanced
Networking Proposal (TelecomAM)

FIRST AMENDMENT
Judge Throws Out Request to View Cookie Files (CyberTimes)

ANTITRUST
Microsoft Says New Book Disproves Antitrust Case (WP)
Harvard, MIT Fight Microsoft Demand for Research Gathered About
Netscape (WSJ)

======
ACCESS
======

TIIAP GRANTS
Issue: Internet Access
Commerce Secretary William M. Daley announced $18.5 million in matching
grants to 46 non-profit organizations and state and local governments across
the United States. The Commerce Department grants will fund innovative uses
of advanced networking technologies which bring the benefits of the
Information Age to underserved areas of the country. The projects funded
will improve delivery of social services, increase access to education,
reduce the cost of health care, and enhance the capabilities of public
safety officials. "These grants provide critical seed money to help forge
partnerships in local communities across the country ensuring that
telecommunications technologies live up to their potential by enhancing
community services, health care delivery, civic participation and much
more," Secretary Daley said. Bernadette McGuire-Rivera, Administrator of
NTIA's Office of Telecommunications and Information Applications, encourages
people who are interested in learning about the grant program to visit the
website or call 202-482-2048 for more information.
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/tiiap92898.htm
http://www.ntia.doc.gov/otiahome/tiiap/Newstuff/newtiiap.html

TWO-WAY DIGITAL ITFS AND MDS COMMUNICATIONS
Issue: Internet Access
The Commission has cleared the way for Multipoint Distribution Service (MDS)
and Instructional Television Fixed Service (ITFS) licensees to offer two-way
digital services. As a result of today's action, a new, competitive group of
players may emerge for delivery of high speed, two-way communications
service to consumers. Both individual and business consumers will be able to
use the high-speed and high-capacity data transmission and Internet service
that will be available through the new systems. Consumers will be able to
take advantage of new video-conferencing, distance learning and continuing
education offerings. MDS typically provides video programming to subscribers
and is often called "wirelesscable." ITFS licensees are typically
educational institutions that use the service for distance learning. Both
are currently one-way services, in which a transmitter sends a signal
downstream to subscribers.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/1998/nrmm8030.html

=====
CABLE
=====

LIBERTY MEDIA UNIT IS SET TO DEVELOP INTERACTIVE CABLE
Issue: Cable
Liberty Media Corporation is planning to convert one analog cable television
channel on TCI systems to 12 to 15 digital channels. The new channels would
be used for interactive services, including home shopping. TCI presently
owns Liberty Media and uses it for program production but is spinning the
subsidiary off in the AT&T deal. TCI presently has 10
million cable subscribers. TCI expects digital set-top boxes that will
allow the interactive services to be received to be widely distributed
beginning in 1999.
[SOURCE: Wall Street Journal (B2), AUTHOR: Leslie Cauley]
http://www.wsj.com/

========
LOBBYING
========

THE BUSINESS OF PERSUASION THRIVES IN NATION'S CAPITAL
Issue: Lobbying
The first of a two-part look at the lobbying industry which is thriving
during the time of a divided Government. In 1997, $1.2 billion was spent on
influencing the Federal Government and at least that amount is predicted for
this year. "The demand for knowledgeable people who can track what is going
on Capitol Hill and the government and can figure out the pressure points
that companies should be touching in Washington has greatly increased," said
Richard Shapiro, executive director of the Congressional Management
Foundation, a private organization which educates the Congress on how to
operate. This long article takes a look at what lobbyists are earning; on
Wednesday -- their techniques.
[SOURCE: New York Times (A1), AUTHOR: Jill Abramson]
http://www.nytimes.com/library/politics/092998lobby-industry.html

SATELLITE INDUSTRY LOBBIES TO SAVE A TAX CREDIT
Issue: Satellite
The Satellite Industry Association, a trade group, says a key tax credit for
satellite firms will be lost in the transfer of government oversight from
the Commerce Department to the State Department. Presently U.S. satellite
company sales to overseas companies receive a 5.2% tax credit. Under the
new law, which is expected to be completed in this congressional session,
the credit would drop to 2.6% because satellites will be treated as military
sales. Sen. Connie Mack has introduced a bill that would raise the tax
credit to 5.2% for all defense-related exports. Industry officials also say
the transfer of government oversight may cause delays because the State
Department may take longer for licensing than the Commerce Department does.
The new procedures will include congressional notification which industry
officials say cause sales delays.
[SOURCE: Wall Street Journal (A2), AUTHOR: Robert S. Greenberger & David S.
Cloud]
http://www.wsj.com/

=======
MERGERS
=======

FCC MAY BE A ROADBLOCK FOR AMERITECH
Issue: Mergers
"I don't want to prejudge the issues," said FCC Chairman William Kennard,
"but I have a healthy degree of skepticism. These companies have a heavy
burden to demonstrate there will be a net increase in competition." Although
the FCC has approved phone mergers in the past, SBC and Ameritech will have
to pass over a higher bar to win approval. The proposed mergers of
SBC-Ameritech and Bell Atlantic-GTE is forcing the FCC to decide "whether it
is in the national interest to have two super-carriers, each with 97 percent
of the market in their own territories and together controlling about 70
percent of local access lines." Chairman Kennard is concerned that the
mergers should not be approved before local markets are opened to
competition. "It is a real question why [SBC and Ameritech] haven't gone
into other markets already," Chairman Kennard said. "They advocate the only
way to have competition in 30 markets is to have two regional Bells combine.
I say show me why that is the case when competitive local exchange carriers
are now in 135 cities and have raised $20 billion in equity capital since
the (telecommunications) act was
passed." Kelly Welsh, Ameritech executive vice president and general
counsel, said "People talk of consolidation versus competition, but that's a
false choice. What you have emerging is consolidation that leads to more
intense competition."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-15719,00.html

SEC CRACKDOWN ON TECHNOLOGY WRITE-OFFS
Issue: Mergers
In a speech yesterday, Securities and Exchange Commission Chairman Arthur
Levitt announced that the agency will increase scrutiny of companies that
use aggressive accounting techniques to inflate their quarterly earnings.
America Online is an example of companies that are using an accounting rule
to write off as soon as they buy them the purchase price of companies as
"research." The SEC delayed publication for AOL's 4th quarter fiscal
earnings for two months before settling on how much of the purchase could be
written off. See also, 'Trick Accounting Draws Levitt Criticism,
http://www.nytimes.com/yr/mo/day/news/financial/sec-accounting.html]
[SOURCE: New York Times (C1), AUTHOR: Saul Hansell]
http://www.nytimes.com/library/tech/98/09/biztech/articles/29aol-marketplac
e.html

==========
REGULATION
==========

FCC SAYS QWEST-BELL COMPANY DEALS VIOLATE TELECOM ACT
FCC BLOCKS TWO BELLS ON LONG DISTANCE ENTRY
FCC REJECTS ALLIANCE OF QWEST, TWO BELLS
Issue: Long Distance
The Ameritech and US West deals to bundle Qwest long distance service with
their own in-region local phone service violates the Telecommunications Act
of 1996, the FCC has ruled. The FCC found these problems with the deals,
TelecomAM reports: 1) The Qwest deals give Ameritech and US West clear
competitive advantages, "including the ability to provide one-stop shopping
for local and long distance;" 2) The companies "are holding themselves out
to customers as providers of long distance service by marketing and selling
under a single brand name" both local and long distance services; and 3)
Ameritech and US West "are performing various functions and activities that
are typically performed by those who resell long distance service." The
opposition to these deals began in court and in June judges in Chicago and
Seattle referred the questions to the FCC.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/
[SOURCE: New York Times (C4), AUTHOR: Seth Schiesel]
http://www.nytimes.com/yr/mo/day/news/financial/fcc-babybells.html
Issue: Long Distance
[SOURCE: Wall Street Journal (B8), AUTHOR: Stephanie N. Mehta & John Simons]
http://www.wsj.com/

NEITHER LECS NOR CLECS LIKE FCC ADVANCED NETWORKING PROPOSAL
Issue: Advanced Services
In comments filed at the FCC, neither incumbent nor competitive new entrants
in the local phone service industry seem to like the Commission's proposed
rules on advanced networks. The FCC has proposed to free incumbent's of
regulation if they create a new subsidiary to offer advanced services. "The
Commission's experience with separate affiliates clearly shows that
structural separation generally is detrimental to investment, innovation and
competition, and results in lost efficiencies, increased costs and reduced
services for consumers," BellSouth said. There's not even any evidence that
ILECs would cause competitive harm, the company said. The FCC does not have
the authority to waive the Telecom Act's resale and interconnection rules
for ILECs as the agency proposed, America's Carriers Telecom Association
(ACTA) said. If the agency decides "to ignore the law and implement its
proposals," it should adopt more safeguards, said ACTA.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

===============
FIRST AMENDMENT
===============

JUDGE THROWS OUT REQUEST TO VIEW COOKIE FILES
Issue: First Amendment
Judge Thomas Higgins of U.S. District Court has decided to throw out a law
suit in which a Tennessee journalist sought to review the files of public
employees in order to see how they spent their time online. The town in
question, Cookeville, TN, does not allow access to digital data so there was
no basis for the journalist's challenge. Geoff Davidian, online publisher of
The Putnam Pit http://www.putnampit.com/, which primarily focuses on city
politics in Cookeville, wanted to examine cookie files to see if city
employees were visiting sites unrelated to their work. He will appeal the
ruling. "When the government has money they can spend it all to try to
thwart legitimate journalism," Davidian said. "You may not like our tone,
you may not like our politics, you may not like our graphics, but we intend
to get the truth."
[SOURCE: New York Times (CyberTimes), AUTHOR: Lisa Napoli napoli( at )nytimes.com]
http://www.nytimes.com/library/tech/98/09/cyber/articles/29putnam.html

=========
ANTITRUST
=========

MICROSOFT SAYS NEW BOOK DISPROVES ANTITRUST CASE (WP)
HARVARD, MIT FIGHT MICROSOFT DEMAND FOR RESEARCH GATHERED ABOUT NETSCAPE (WSJ)
Issue: Antitrust
One of the legal approaches by Microsoft Corp. in its defense of antitrust
charges may be emerging with the software giant's attempt to get information
from two professors about Netscape Communications. Two business professors,
one from Harvard and the other from MIT, have written a soon-to-be-published
book on Netscape's operations. The book reportedly has Netscape officials
admitting to technical and strategic missteps in company operations in their
competition with Microsoft. Microsoft has gone to court to get copies of
the professors' research. The professors have objected on First Amendment
grounds. Microsoft is expected to use the information to show that
Netscape's business misfortunes were caused by its own problems and not
caused by Microsoft's competition.
[SOURCE: Washington Post (E01), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/WPlate/1998-09/29/121l-092998-idx.html
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke]
http://www.wsj.com/

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
On to Atlanta!

V-CHIP
Study Finds TV Networks Fail In Alert to Sex and Violence (NYT)
Study: TV Ratings Often Incomplete (ChiTrib)

LAW & THE INTERNET
Senate Panel Debates Children's Online Privacy (CyberTimes)
Annoy.com Can Be Indecent, but not Obscene (CyberTimes)
Can a Web Link Break Copyright Laws? (CyberTimes)

ADVANCED TELECOM SERVICES
Advanced Services Technical Roundtables (FCC)

INTERNET
Investors Bid Up Shares of Online Auction Firm (WP)
Search for Pez Launched Web's Newest Mogul (WSJ)

ANTITRUST
Ejected Adviser May Return (WP)

COMPETITION
Cirrus to Reduce Chip Manufacturing by 70%, Lay off 400 to 500
Employees (WSJ)
Intel and Microsoft Remain Allied Despite Squabbles (WSJ)

TECHNOLOGY
Video Discontent (WP)
AtHome's Speed in Providing Internet Access Proves Popular with Some
Big Tech Investors (WSJ)

======
V-CHIP
======

STUDY FINDS TV NETWORKS FAIL IN ALERT TO SEX AND VIOLENCE
STUDY: TV RATINGS OFTEN INCOMPLETE
Issue: V-Chip
A year after television adopted content labels to add to their age labels, a
new study by the Kaiser Family Foundation reports that networks are not
regularly adding the codes. 96% of shows have an age-group rating, but some
92% of shows with some sexual content did not carry the "S" label; 79% of
shows with violence did not have the "V" label; 81% of children's shows with
violence did not have the "FV" label for fantasy violence. "If the ratings
are misleading or not being applied accurately, then the system won't work
for parents," said Kathryn C. Montgomery, president of the Center for Media
Education, a Washington group concerned with how the media influence
children. "We need some close scrutiny from the monitoring board." The
monitoring board -- made up of members of the industry and family advocacy
groups -- will meet in November. [See the Kaiser Family Fund release at
http://www.kff.org/homepage/]
[SOURCE: New York Times (A17), AUTHOR: Lawrie Mifflin]
http://www.nytimes.com/yr/mo/day/news/national/tv-ratings-backslide.html/
[SOURCE: Chicago Tribune (Sec 1, p.3), AUTHOR: Associated Press]
http://chicagotribune.com/textversion/article/0,1492,SAV-9809250131,00.html

==================
LAW & THE INTERNET
==================

SENATE PANEL DEBATES CHILDREN'S ONLINE PRIVACY
Issue: Privacy
Arthur B. Sackler, vice president for law and public policy of Time Warner
Inc. and a member of the Direct Marketing Association, told the
communications subcommittee of the Senate Commerce Committee that
legislation to protect children's privacy online could destroy the
spontaneous nature that makes the Internet unique. "For example, a child's
e-mail address is necessary in order to respond to inquiries such as updates
on Mark McGuire's and Sammy Sosa's home run figures this year or updates of
an online magazine," said Mr. Sackler. "In this context, a standard of
reasonable efforts to provide parental notification, rather than obtaining
parental consent, is the only standard that will work if the legislation is
not to eliminate all spontaneous interactivity for children." The
subcommittee is considering the Children's Online Privacy Protection Act
http://thomas.loc.gov/cgi-bin/bdquery/z?d105:s.02326:, which was drafted
on the recommendation of the Federal Trade Commission. The bill would
require the FTC to right privacy rules for commercial websites.
[SOURCE: New York Times (CyberTimes), AUTHOR: Jeri Clausing
jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/98/09/cyber/articles/24privacy.html

ANNOY.COM CAN BE INDECENT, BUT NOT OBSCENE
Issue: First Amendment
Annoy.com http://www.annoy.com/ challenged portions of the
Telecommunications Act of 1996 that outlaws the use of a "telecommunications
device" to transmit comments that are "obscene, lewd, lascivious, filthy or
indecent" when the intent is "to annoy, abuse, threaten or harass another
person." Annoy's parent company, ApolloMedia, did not object to the bans on
obscenity, harassment, abuse or threats, but argued that the law would also
criminalize online communication that is both "indecent" and meant to
"annoy." Annoy.com enables visitors to send unvarnished opinions to
political and other figures in the news and feared the law could put them
out of business. The United States District Court for the Northern District
of California in San Francisco ruled that the statute really proscribes only
obscenity, which, unlike indecent speech, receives no First Amendment
protection.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels
mendels( at )nytimes.com ]
http://www.nytimes.com/library/tech/98/09/cyber/articles/25annoy.html

CAN A WEB LINK BREAK COPYRIGHT LAWS?
Issue: Copyright
So your web site links to another site that in turn links to a site with
illegally reproduced images. Are you in trouble? That was the question
raised in a recently dropped lawsuit. But legal experts expect that someday
the issue will be decided in court. The lawsuit was "fascinating and also
really scary," said Jessica Litman, a copyright expert and law professor at
Wayne State University. "If people are going to be liable when they link to
material that they have no reason to think is infringing, then everyone,
everyone who links, will be dragged into court all the time. That doesn't
make good policy sense."
[SOURCE: New York Times (CyberTimes), AUTHOR: Carl S. Kaplan
kaplanc( at )nytimes.com]
http://www.nytimes.com/library/tech/98/09/cyber/cyberlaw/25law.html

=========================
ADVANCED TELECOM SERVICES
=========================

ADVANCED SERVICES TECHNICAL ROUNDTABLES
Issue: Bandwidth
The Commission's Bandwidth Task Force and Common Carrier Bureau will host
three roundtables to discuss technical issues related to deployment of
advanced services. The first roundtable, "Technical Issues Relating to the
Provision of Advanced Services Over the Local Loop: Loop Qualification and
Subloop Unbundling," will address, for example, the technical issues of
providing advanced services, like xDSL, through digital loop
carrier-provisioned loops; access to remote terminals; access to information
on loop capabilities; and loop administration and maintenance. The second
roundtable, "Technical Issues Relating to the Use of Different Advanced
Services Technologies: Spectrum Interference in the Copper Loop," will
address, for example, spectrum management issues; standards setting; and
subfrequency unbundling viability. The third roundtable, "Technical Issues
Relating to the Collocation of Equipment used to Provide Advanced Services,"
will address, for example, remote terminal collocation; equipment safety
standards; and switching collocation. These roundtables will permit
representatives from different segments of the telecommunications industry
to address the technical issues with respect to each of these topics.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1998/da981944.html

========
INTERNET
========

INVESTORS BID UP SHARES OF ONLINE AUCTION FIRM (WP)
SEARCH FOR PEZ LAUNCHED WEB'S NEWEST MOGUL (WSJ)
Issue: Internet
The initial public offering for three-year-old Internet auctioneer eBay Inc.
was a big hit on Wall Street yesterday. The initial offering price of $18
ended the day at more than $47. Analysts said the valuation reflect
consumer excitement over online auctions and the fact that eBay is the
leader in consumer auctions. More than 2 million people visited eBay's site
last month. More that 200 auction sites are now on the Internet.
[SOURCE: Washington Post (F1), AUTHOR: Leslie Walker]
http://www.washingtonpost.com/wp-srv/washtech/daily/sept98/auction092598...
[SOURCE: Wall Street Journal (B1), AUTHOR: George Anders]
http://www.wsj.com

=========
ANTITRUST
=========

EJECTED ADVISER MAY RETURN
Issue: Antitrust
Harvard University law professor Lawrence Lessig may be asked to write a
brief as a "friend of the court" for the Microsoft antitrust case. U.S.
District Judge Thomas Penfield Jackson has told lawyers for both sides he is
considering the action. Lessig was rejected from a role in the case last
December when Microsoft objected to his being named as a "special master" to
report on technical issues arising from the question of whether Microsoft
violated federal antitrust laws by including Internet-browsing technology in
its Windows 98 operating system software.
[SOURCE: Washington Post (F1), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm

===========
COMPETITION
===========

CIRRUS TO REDUCE CHIP MANUFACTURING BY 70%, LAY OFF 400 TO 500 EMPLOYEES
Issue: Competition
Cirrus Logic Inc., a California computer-chip maker, announced layoffs for
400 to 500 employees as the company restructures and phases out certain
businesses. The changes will mean reduced chip manufacturing of 70 per
cent. The new focus of the business will be on production of linear and
mixed-signal chips for personal computer storage and audio products. Cirrus
was the No. 1 graphics chip maker at one time but has lost market share.
[SOURCE: Wall Street Journal (B5), AUTHOR: Dean Takahashi]
http://www.wsj.com

INTEL AND MICROSOFT REMAIN ALLIED DESPITE SQUABBLES
Issue: Competition/Antitrust
Wintel, the computer development alliance between computer software giant
Microsoft and microchip giant Intel continues but is contentious. There is
little chance the alliance will split because of a shared goal of growth in
the PC market. However, Microsoft is supporting small computers with
non-Intel chips and has supported graphics technology from a rival of Intel.
Intel, on the other hand, has supported Unix software that competes with
Microsoft's Windows NT. The alliance continues under tight scrutiny because
of the possibility of anti competitive tactics that could add fire for the
antitrust case against Microsoft.
[SOURCE: Wall Street Journal (B5), AUTHOR: Dean Takahashi]
http://www.wsj.com

==========
TECHNOLOGY
==========

VIDEO DISCONTENT
Issue: Technology
The race to replace the VHS videotape and the VCR gains a new entrant as
Divx is added in the next few weeks to the variety of digital video disc
(DVD) options. Divx (or Digital Video Express) uses a pay-per-view approach
and is being supported by Hollywood for its copy protection capability.
Divx players will be able to play DVD discs but DVD players will not play
Divx discs. Divx players will cost more than DVD players but Divx discs
will cost less. Divx players must be connected to a telephone line.
Monthly usage of Divx discs is reported to a remote site which charges for
each time the disc is played.
[SOURCE: Washington Post (Weekend42), AUTHOR: Daniel Greenberg]
http://www.washingtonpost.com/wp-srv/tech/septpullout/feature.htm

ATHOME'S SPEED IN PROVIDING INTERNET ACCESS PROVES POPULAR WITH SOME BIG
TECH INVESTORS
Issue: Technology
Internet access provider AtHome has worked out an arrangement with six large
cable companies to provide Web access via cable television wires. Service
now to parts of 35 markets is expected to expand. Cable connections can
speed Internet access by 20 times over regular phone line hookups. Also the
connection will not tie up phone lines for residential users and is a
simpler process for routine connection. Because it has exclusive contracts
with major cable companies through the year 2002, financial analysts believe
the service will have a chance to expand and develop.
[SOURCE: Wall Street Journal (C2), AUTHOR: Susan Pulliam]
http://www.wsj.com

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
Cubs fans, catch Kevin at the Astrodome Saturday and Sunday; he promises to
return Sammy's record-setting 68th homer after snagging it in right field on
Sunday afternoon.

ED TECH
$2 Million to School District in Manhattan (NYT)
Universities Finding a Sharp Rise in Computer-Aided Cheating (NYT)

TELEPHONY
Ameritech Service to Fend Off Unwanted Calls (ChiTrib)
Advertising: Ameritech's New Phone Service Aims to Keep
Telemarketers at Bay (WSJ)
USTA Says Congress Will Review FCC Operations
and Structure (TelecomAM)
Tutorial on Internet Telephony (FCC)

ACCESS TO GOVERNMENT INFORMATION
House Panel Plans 1st Web Broadcast of Hearing (WP)

TELEVISION
Networks Feel Pressure From Their Cable Cousins (ChiTrib)

CAMPAIGN FINANCE REFORM
In Wisconsin Race for Senate, 2 Opponents Put Limits on
Campaign Coffers (NYT)
The Color of Campaign Finance (WP)

ADVERTISING
Advertisers Are Graded on How They Depict Women (NYT)

SATELLITE
Globalstar Estimates Launch Failure Will Add
$240 Million to Satellite Costs (WSJ)

INFO TECH
Eyes for the Mouse, Wheels for the Joystick (NYT)
Powering Down Prices (WP)

====================
EDUCATION TECHNOLOGY
====================

$2 MILLION TO SCHOOL DISTRICT IN MANHATTAN
Issue: EdTech -- Training
The Department of Education's Technology Innovation Challenge Grant Program
announced that $30 million would be distributed to 20 school districts in 17
states. The funds are to support parents and teachers who use new
technologies in the classroom. "The grants focus on enhancing teachers'
skills and their professional development to use computers and advanced
learning technologies in their classrooms," Richard W. Riley, the Secretary
of Education, said. "Students will benefit from teachers who are familiar
with these rapidly changing technologies and are able to effectively
integrate them into their teaching curriculum."
[SOURCE: New York Times (A26)]
http://www.nytimes.com/library/national/regional/092398educ-ny-grant.html

UNIVERSITIES FINDING A SHARP RISE IN COMPUTER-AIDED CHEATING
Issue: EdTech
Don't give into the dark side of edtech, young Skywalker. "I don't know if
this is the beginning of an ugly, awful trend or just a blip," said one
professor. "It's a new world out there." Cheating seems to be on the rise at
American universities as students find it easier to copy term papers, test
answers, and other works through computer technology. "Let's say everyone in
the class has a networked computer," said a vice provost at Clemson
University. "They can exchange information electronically. They can pull
down information electronically. Who's going to watch over every student's
shoulder to see what they are doing?" Professors are urged to tie
assignments closely to course material and to require outlines and drafts to
monitor a student's progress.
[SOURCE: New York Times (A26), AUTHOR: Ian Zack]
http://www.nytimes.com/

=========
TELEPHONY
=========

AMERITECH SERVICE TO FEND OFF UNWANTED CALLS
Issue: Telephone
For $11.50/month you may be able to make your home a 'telemarketing-free'
zone. Ameritech launched a new service, Privacy Manager, in Chicago on
Tuesday. The service, in conjunction with CallerID, diverts calls that don't
carry identification. An automated message asks the caller to identify
herself. If the answer is no, the call is terminated; if the caller
complies, Privacy Manager completes the call, announces who is calling, and
allows the customer to accept or decline the call. [Yeah, you're right, it's
not new; it's an automated butler.] "It's almost like the protection
racket," said Seamus Glynn associate director of the Consumers Utility
Board. "The same company that comes up with more and more ways people can
get to you at home and invade your privacy now comes up with protection
against these invasions." A local telecommunications consultant said, "It's
a fabulous windfall for Ameritech. They charge the telemarketer to make a
call at the same time they charge you to screen it and block it. It's like a
restaurant charging you for large portions and then charge to take away what
you don't want to eat. I love it. It's a fabulous marketing ploy, but
there's no small amount of irony in what they're doing." Jeffery Kagan, a
industry analyst, said, "It's the latest escalation in technological
warfare. First the telemarketers called us cold, so we got Caller ID and
could ignore unwanted solicitations. Then the marketers started blocking
their ID. Now we can block the blockers. It's like the arms race, and a
great deal for Ameritech."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-15294,00.html

ADVERTISING: AMERITECH'S NEW PHONE SERVICE AIMS TO KEEP TELEMARKETERS AT BAY
Issue: Telephone
A new phone service called Privacy Manager has begun service in two U.S.
cities to thwart calls from telemarketers. Privacy Manager works as an
add-on to caller ID to identify callers. The service intercepts calls that
do not have a name and number provided for caller ID and requires the caller
to provide verbal identity. The user then can decide whether to take the
call or not. The service by Ameritech is planned for nationwide
distribution and will cost $3.95 a month.
[SOURCE: Wall Street Journal (B10), AUTHOR: Sally Beatty
http://wsj.com

USTA SAYS CONGRESS WILL REVIEW FCC OPERATIONS AND STRUCTURE
Issue: FCC
U.S. Telephone Association (USTA) President Roy Neel told reporters
yesterday that the 106th Congress may begin "vigorous oversight" of the
FCC's operations and structure resulting in mandates to shrink the agency
and limit its authority. Mr. Neel faulted the FCC's interpretation of the
Telecommunications Act of 1996. The goal, he said, is for the FCC to "come
around to a different way of thinking," in part by reducing regulation on
local telephone companies.
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

TUTORIAL ON INTERNET TELEPHONY
Issue: Internet
The Office of Engineering and Technology will present a tutorial on
"Internet Telephony: Voice Over IP" on October 5th in the Commission Meeting
Room, Room 856, 1919 M Street N.W. The tutorial will be given by personnel
from Cisco Systems, Inc. and will consist of a morning and afternoon
session. The morning session will be from 9 am to 11 am and the afternoon
session will be from 1:30 pm to 3:30 pm. Topics to be covered include: what
is voice over Internet Protocol, why voice over IP, how is this
accomplished, what network architectures and applications are used, the
economics of voice over IP networks, case studies and operations.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Engineering_Technology/Public_Notices/1998/pnet8
017.html

================================
ACCESS TO GOVERNMENT INFORMATION
================================

HOUSE PANEL PLANS 1ST WEB BROADCAST OF HEARING
Issue: Internet
The House Agriculture Committee becomes the first congressional panel to
broadcast proceedings with live audio over the Internet. The subject is
emergency food assistance programs. Representative Robert F. Smith,
committee chairman, called it "a great step forward to making the government
more accessible." The 10 a.m. hearing is available at
http://www.house.gov/agriculture/audio.htm on the Web.
[SOURCE: Washington Post (A23), AUTHOR: Reuters]
http://www.washingtonpost.com/wp-srv/WPlate/1998-09/23/028l-092398-idx.html

==========
TELEVISION
==========

NETWORKS FEEL PRESSURE FROM THEIR CABLE COUSINS
Issue: Television Economics
The tension between broadcast and cable television surfaced during the
Emmys. Broadcasters are seeing a majority of the audience shifting to cable
channels instead of their own as cable has aired more original programming.
Warren Littlefield, President of NBC Entertainment, said "Despite increased
penetration and the addition of new cable services every day, viewership for
individual cable services -- and pay cable -- is simply not on the rise. But
actually, does the viewer really distinguish any longer between network
television and cable television? The kids, when they're sitting there with
the clicker, don't really distinguish at all [and], in 76% of the country,
NBC comes in on a wire,just like anything else. So, we are looking, really,
more than ever, at competing with everything that comes in over the wire."
Networks are having problems launching hits, yet they still beat cable in
creating drama series and promoting "event television" like the last
Seinfeld or the Super Bowl. Cable is competing with comedies like The Larry
Sanders Show and made-for TV movies like Miss Ever's Boys.
[SOURCE: Chicago Tribune (Sec 5, p.1), AUTHOR: Gary Dretzka]
http://chicagotribune.com/

=======================
CAMPAIGN FINANCE REFORM
=======================

IN WISCONSIN RACE FOR SENATE, 2 OPPONENTS PUT LIMITS ON CAMPAIGN COFFERS
Issue: Campaign Finance Reform
Senator Russell Feingold (D) and challenger Representative Mark Neumann (R)
have agreed to limit their spending in this year's race for the Senate. The
agreement is a kind of "do-it-yourself" campaign finance reform by the
co-sponsor of this year's major finance reform bill and a challenger that
believes Americans don't need mandates to do what's right. Sen Feingold has
also refused to cooperate with lobbyists raising money to run ads on his
behalf. Paul Taylor, executive director of the Alliance for Better
Campaigns, cautions that the spending limits may "tilt the playing field to
outside interests," like business and union groups. "It's an attractive
experiment," Mr. Taylor said. "The instinct is to be applauded. But
everybody ought to have their eyes open here."
[SOURCE: New York Times (A14), AUTHOR: Dirk Johnson]
http://www.nytimes.com/library/politics/camp/sen/articles/092398wi-sen.html

THE COLOR OF CAMPAIGN FINANCE
Issue: Minorities/Campaign Finance
A report from Public Campaign to be released today says blacks and other
minorities give money to political campaigns far less frequently than
whites. The result is limited influence in a political process that is
increasingly dependent on money. Public Campaign calls the current system
unfair and is taking legal action against laws in some state and local
jurisdictions.
[SOURCE: Washington Post (A23), AUTHOR: Michael A. Fletcher]
http://www.washingtonpost.com/wp-srv/WPlate/1998-09/23/025l-092398-idx.html

===========
ADVERTISING
===========

ADVERTISERS ARE GRADED ON HOW THEY DEPICT WOMEN
Issue: Advertising/Gender
Advertising Women of New York has graded fellow advertisers again this year
and will honor and dishonor some with the annual the Good, the Bad, the Ugly
Awards scheduled for today. Ads that portray women as multidimensional will
gain praise. Ads were graded by a panel of judges, but also by focus groups
-- videos of which will be shown at the luncheon.
[SOURCE: New York Times (C5), AUTHOR: Courtney Kane]
http://www.nytimes.com/yr/mo/day/news/financial/women-ad-column.html

==========
SATELLITES
==========

GLOBALSTAR ESTIMATES LAUNCH FAILURE WILL ADD $240 MILLION TO SATELLITE COSTS
Issue: Satellite
Globalstar Telecommunications Ltd. said the cost of completing its planned
constellation of telecommunication satellites will rise by $240 million. On
September 9 Globalstar suffered a major setback when a rocket carrying 12
satellites exploded delaying the start of service by three months.
Globalstar's telecommunications services are to begin in late 1999 using 32
satellites with final plans calling for 48 satellites.
[SOURCE: Wall Street Journal (B6), AUTHOR: Wall Street Journal Staff Reporter
http://wsj.com

=========
INFO TECH
=========

EYES FOR THE MOUSE, WHEELS FOR THE JOYSTICK
Issue: InfoTech
Internet software developers Carl Malamud and Marshall Rose have started a
new company, Invisible Worlds Inc, to develop navigation tools for the
Internet with maps that portray the relationships between computers and
information as three-dimensional space. "We think you should be able to take
your mouse or joystick and drive around the Internet," Mr. Malamud said.
"One of the reasons the Web seems so chaotic is there is no way to see it
visually." He said this is the first commercial effort to try to map the
entire Internet. Mr. Rose developed the Post Office Protocol (POP), the
standard for send and receiving email; Mr. Malamud developed Internet Talk
Radio and other nonprofit projects. Vinton Cerf, who invented the Internet
protocol and is now an executive at MCI WorldCom [is it me, or does WorldCom
MCI sound better?], said mapping the Internet is a daunting task with no
certain outcome -- he abandoned his own effort to do so because it was too
difficult.
[SOURCE: New York Times (C7), AUTHOR: John Markoff]
http://www.nytimes.com/library/tech/98/09/biztech/articles/23internet-ma...

POWERING DOWN PRICES (WP)
Issue: Computer Technology
Computer prices have been in a steep decline the past 18 months, but
industry analysts say we may be "getting to the bottom." A computer with
Internet capability and up-to-date software often sells for under $1,000
today. Analysts offer three reasons for the decline: a price war is driving
prices down, current software does not need more advanced systems to
operate, and Asian companies in the midst of a financial crisis are slashing
prices for memory chips and other key components.
[SOURCE: Washington Post (C14), AUTHOR: Elizabeth Corcoran]
http://www.washingtonpost.com/wp-srv/WPlate/1998-09/23/145l-092398-idx.html

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

MEDIA OWNERSHIP
Gore Stumps for Minority Ownership (B&C)
NTIA Report Finds Minority Broadcast Ownership Remains at
Record Low Levels (NTIA)
Court Denies Recruitment Rehearing (B&C)

TELEVISION
DTV or Bust, Says Kennard (B&C)
Paxson Pushes DTV Partnership (B&C)
High-Stakes Battle for Momentum (NYT)
Studies Differ on Internet's Impact on TV (NYT)
Cable Up, Broadcast Down (B&C)
FCC Requires More Captioning (B&C)

COMPETITION
Opponents are Lining Up to Block Mergers of Phone Companies (ChiTrib)
McCain Says PCS Should Be Viewed as Local Competition (TelecomAM)
The Battle for the Last Mile (WSJ)

INTERNET
FTC Surfs the Web and Gears Up to Demand Privacy Protection (NYT)
A High-Flying Communications Idea (WP)
It's Digital, It's Encrypted -- It's Postage (WSJ)
InfoSeek, Disney Unit to Launch New Internet Site(WSJ)
Broadcom Puts Cable-Modem Circuity on Single Chip,
A Leap for the Industry (WSJ)
Internet Sites Brace for Video of Clinton Before Grand Jury (WSJ)

SATELLITE
Lockheed to Buy Comsat, Satellite Access Seller, For
$2.7 Billion (NYT)
Lockheed Seeks to Buy Comsat for $2.7 Billion (WP)
DBS Deal in Works (B&C)

ADVERTISING
Ford to Sponsor Time's Special Reports on Environment,
In Unusual Agreement (WSJ)

===============
MEDIA OWNERSHIP
===============

GORE STUMPS FOR MINORITY OWNERSHIP
Issue: Minorities
Vice President Albert Gore said last week that "we need to be sure that
consolidation in your industry does not lead to elimination of minority
broadcasters and minority voices." His remarks were made to the National
Association of Black-Owned Broadcasters and seem to support the agenda of
FCC Chairman Bill Kennard. VP Gore said he would ask federal agencies to
review their policies to be sure they are promoting diversity in advertising.
[SOURCE: Broadcasting & Cable (7), AUTHOR: Paige Albiniak and Bill McConnell]
http://www.broadcastingcable.com

NTIA REPORT FINDS MINORITY BROADCAST OWNERSHIP REMAINS AT RECORD LOW LEVELS
Issue: Ownership
Deregulation of the telecommunications industry and the resulting trend
towards media consolidation has led to a decline in the number of minority
broadcast owners, threatening minority employment opportunities and
diversity in the broadcasting industry, according to a Commerce Department
report released today. The 1998 Minority Commercial Broadcast Ownership
report, the eighth annual survey of minority broadcast ownership released by
the Department's National Telecommunications and Information Administration
(NTIA), said the number of minority owned commercial radio and television
stations increased slightly over last year. But overall minority broadcast
ownership remained at record low levels. The report revealed many disturbing
trends which indicate minorities will continue to be severely
underrepresented in the broadcast industry. For example, over a five-year
period (1993-1998), the industry as a whole gained 503 new stations. Over
this same period, minority ownership increased by only 15 stations. Vice
President Al Gore, who previewed the report in a speech to the National
Association of Black Owned Broadcasters, said "this isn't just a question of
diversity, it's a question of democracy. In the marketplace of ideas,
independent minority-owned broadcast stations play a vital role in this
country. As a nation we cannot afford to lose that voice."
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/minown98.htm

COURT DENIES RECRUITMENT REHEARING
Issue: Minorities
A new hearing on the FCC's minority recruitment rules was rejected last week
by the U.S. Court of Appeals. The appeals court ruling in April which
rejected the requirement by broadcasters to actively recruit minorities and
women as unconstitutional will stand. The FCC may appeal to the Supreme Court.
[SOURCE: Broadcasting & Cable (26), AUTHOR: Bill McConnell and Paige Albiniak]
http://www.broadcastingcable.com

==========
TELEVISION
==========

DTV OR BUST, SAYS KENNARD
Issue: Digital TV
FCC Chairman Bill Kennard sees a limited role for government in the
introduction and acceptance of digital television. Speaking last week to
the International Radio and Television Society, he said the FCC still has
some major decisions in the field, including must-carry rules for cable.
Other areas of federal involvement he included were work with TV set
manufacturers and cable companies on how DTV signals will be sent via cable,
providing consumer information on DTV, working on international
interference, and dealing with local authorities on DTV construction issues.
[SOURCE: Broadcasting & Cable (22), AUTHOR: Harry A. Jessell]
http://www.broadcastingcable.com

PAXSON PUSHES DTV PARTNERSHIP
Issue: Digital TV
Bud Paxson said digital television's success requires partnerships between
broadcasters and cable, satellite and computer industries. Speaking at a
Broadcasting & Cable conference he also criticized the FCC for its lack of
help on DTV. He stated his support for must-carry rules for cable services
to provide carriage of digital signals. Paxson, the head of the new Pax TV
network, also recommended the loosening of restrictions on TV station
ownership.
[SOURCE: Broadcasting & Cable (18), AUTHOR: Harry A. Jessell]
http://www.broadcastingcable.com

HIGH-STAKES BATTLE FOR MOMENTUM
Issue: Television Economics
Network executives committed $6.5 billion to the new prime time season which
begins tonight. That's no more than last year, but seen as a positive
considering expectations for the networks: ever-decreasing ratings as
audience is lost to cable channels. One senior network executive, speaking
on condition of anonymity, said: "I've told people at the network that the
next 18 months will be the ugliest in the history of this business. What
there is in the air is desperation." The desperation is reflected, the
executive continued, in the record-breaking deal for "E.R."
[SOURCE: New York Times (C7), AUTHOR: Bill Carter]
http://www.nytimes.com/yr/mo/day/news/financial/tv-fallseason-media.html

STUDIES DIFFER ON INTERNET'S IMPACT ON TV
Issue: Old vs New Media
Discovery Communications, the operator of science-oriented cable channels,
will release today a new study on the effects of Internet use on television
viewing habits. Looking at Nielsen Media Research numbers used for America
Online last month, Discovery will report that teen-agers that use the
Internet watch less TV, for all other age groups, Internet use increases
time spent watching television. "We see media consumption leading to more
media consumption," said Betsy Frank, executive vice president for research
at MTV Networks. "People don't quit watching television because they go
online. They do more of both."
[SOURCE: New York Times (C2), AUTHOR: Saul Hansell]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/21net.html

CABLE UP, BROADCAST DOWN
Issue: Television Economics
Cable networks and cable operators should see continued revenue growth for
the next five years, according to a panel at a Broadcasting & Cable
conference last week. With developing technology, the capacity for dual and
alternate streams of revenue will fuel cable services' expansion while
broadcast TV networks, lacking those opportunities, will continue a downward
spiral.
[SOURCE: Broadcasting & Cable (15), AUTHOR: Donna Petrozzello]
http://www.broadcastingcable.com

===========
COMPETITION
===========

OPPONENTS ARE LINING UP TO TRY TO BLOCK MERGERS OF PHONE COMPANIES
Issue: Mergers/Competition
The WorldCom/MCI merger is official, but phone companies are lining up
against mergers still on the table. At a US Senate subcommittee meeting last
week, Sprint's CEO William Esrey said the proposed SBC/Ameritech and Bell
Atlantic/GTE mergers "are over the line and must be blocked." Mr. Esrey
said "innovation comes from competitive market pressures, not monopolies."
Senators Michael DeWine, Republican of Ohio, and Herb Kohl, Democrat of
Wisconsin, said they would send a letter recommending that antitrust
authorities not approve the pending mergers without
guarantees that the new companies will promote vigorous competition. "We've
heard too many unkept promises of market entry and seen too many failed
plans for local competition," said Sen DeWine,
Chairman of the Senate Judiciary Committee's antitrust subcommittee.
[SOURCE: Chicago Tribune (Sec 4, p.2), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-15066,00.html

MCCAIN SAYS PCS SHOULD BE VIEWED AS LOCAL COMPETITION
Issue: Competition
Senate Commerce Committee Chairman John McCain (R-AZ) has written a letter
to FCC Chairman Bill Kennard saying that "Congress intended" for personal
communications services (PCS) networks to be viewed as local competition to
Bell companies. Congress deliberately excluded cellular service, the
senator wrote, but not PCS, from the definition of what constitutes local
competition. Cellular already had been deployed throughout the U.S. but PCS
networks hadn't and thus could "potentially provide new competition in the
local market," Sen McCain said. "I encourage you to give serious
consideration to whether PCS is providing competition to the local exchange
market," Sen McCain said. "The Commission should be focused on implementing
the Telecommunications Act to
encourage competition, not maintain the status quo."
[SOURCE: Telecom AM]
http://www.telecommunications.com/am/

THE BATTLE FOR THE LAST MILE
Issue: Telecommunications Act/Regulation
In a 30-page section devoted entirely to telecommunications, the WSJ looks
back at the last 2-1/2 years since passage of the Telecommunications Act.
Recalling claims that the local service market would be opened to
competition between the Baby Bells and the long distance companies, the
series of articles review why competition hasn't occurred. Topics covered
in seventeen articles include why cable-TV firms haven't gone anywhere, why
the promise of deregulation is yet to be fulfilled, why wireless technology
might provide a detour around the Bells' grip. At the time of this writing,
free online access to this special report was not available; hard copy
reprints, however, are available from Telecommunications, Dow Jones &
Company, Inc., Attn: Anita Deragon, 84 Second Avenue, Chicopee, MA 01020.
$4 for one copy; $2 each for each additional copy. Check or money order
(payable to Dow Jones & Co.) only.
[SOURCE: Wall Street Journal (Section R), AUTHOR: (various); edited by Bart
Ziegler]
http://wsj.com

========
INTERNET
========

FTC SURFS THE WEB AND GEARS UP TO DEMAND PRIVACY PROTECTION
Issue: Privacy/Internet Regulation
"We are losing patience with self-regulation," David Medine, an associate
director in the Federal Trade Commission's Bureau of Consumer Protection,
said in an interview, reflecting the larger agency opinion on this issue.
"It's too bad, but I think industry has lost the opportunity to show that
they will do it on their own." Last spring, dozens of lawyers participated
in the Big Surf: the traveled the World Wide Web searching for privacy
problems. In a report this summer, the results were published: more than 90%
of 1,400 sites examined collected personal information from visitors, but
only 14% of them disclosed how the information would be used.
[SOURCE: New York Times (C1), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/98/09/biztech/articles/21privacy.html

A HIGH-FLYING COMMUNICATIONS IDEA
Issue: Internet Access
Angel Technologies Corp., a St. Louis company, has a unique way to offer
Internet service: "With 2,000 pounds of communications gear as payload and a
large antenna strapped to the fuselage, the Angel HALO (high-altitude,
long-operation) planes would run tag-team missions above selected cities,
serving as many as 50,000 subscribers in coverage circles of 50 to 75 miles
in diameter," Mills reports. Anyone within the coverage area with a small,
dome-shaped receiving antenna will be able to receive high-speed Internet
access and phone calls.
[SOURCE: Washington Post (F27), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/WPlate/1998-09/21/028l-092198-idx.html

IT'S DIGITAL, IT'S ENCRYPTED -- IT'S POSTAGE
Issue: E-Commerce
This summer, the U.S. Postal Service began testing digital postage. The
system allows users to purchase postage "stamps" (their technical title is
"indicia") through the Internet and print them out for hard-copy mail.
Current indicia include scannable sender and recipient data. Vendors are
expected to charge a 5-15% service charge for the convenience.
[SOURCE: Wall Street Journal (B1, B6), AUTHOR: George Anders]
http://wsj.com

INFOSEEK, DISNEY UNIT TO LAUNCH NEW INTERNET SITE
Issue:
Infoseek and Disney's online division today announce the "Go Network"
(go.com) which will replace the Infoseek brand as a new "portal" to compete
with Yahoo, Excite and other central hub sites on the Internet. Disney
owns 43% of Infoseek. Expect to see Go.Com ads on ABC over the next five
years. The new site will combine search and directory functions with
personalized services, electronic commerce, and featuring other Disney-owned
sites prominently.
[SOURCE: Wall Street Journal (B4), AUTHOR: Kara Swisher, Bruce Orwall]
http://wsj.com

BROADCOM PUTS CABLE-MODEM CIRCUITRY ON SINGLE CHIP,
A LEAP FOR THE INDUSTRY
Issue:
Broadcom is coming out with a single computer chip that blends the
circuitry for TV signals as well as computer data onto one chip instead of
the current three. The new technology is expected to sharply cut the cost of
home
equipment, making way for cable companies to reduce their costs enough to
compete with telephone companies that are pushing to offer similar services
through traditional phone wires. The chip will support two-way voice and
data transfer over cable.
[SOURCE: Wall Street Journal (B4), AUTHOR: Frederick Rose]
http://wsj.com

INTERNET SITES BRACE FOR VIDEO OF CLINTON BEFORE GRAND JURY
Issue: Content
While Starr's 445-page report released on September 11 would take up only
one 3-1/2 inch floppy disk, that same disk could hold less than one minute
of Clinton's video testimony released today. Great concern exists that
Internet Service Providers (ISPs) will come to a groaning halt while
millions of netizens attempt to view the video online. Sites that are
showing the video online include CNN Interactive. Microsoft and GE will air
the video with a few second delay in order to edit out anything "really
obscene." Yahoo, on the other hand, is only posting a text transcript, and
America OnLine is encouraging its users to access an audio-only feed.
[SOURCE: Wall Street Journal (A8), AUTHOR: Rebecca Quick, Thomas E. Weber]
http://wsj.com

=========
SATELLITE
=========

LOCKHEED TO BUY COMSAT, SATELLITE ACCESS SELLER, FOR $2.7 BILLION
LOCKHEED SEEKS TO BUY COMCAST FOR $2.7 BILLION
Issue: Satellite/Merger
Lockheed Martin Corporation will purchase Comsat Corporation for $2.7
billion. Comsat is a leading provider of voice data, video and other
services between the US and other countries. AT&T, MCI and Sprint uses
Comcast to send calls overseas. The deal will need to be approved by the
Department of Justice and the FCC. The deal marks a move for Lockheed from
military products to global telecommunications. [Or does it mark a move of
telecommunications into military use?]
[SOURCE: New York Times (A11), AUTHOR: Leslie Wayne]
http://www.nytimes.com/
[SOURCE: Washington Post (A1), AUTHOR: Tim Smart]
http://www.washingtonpost.com/wp-srv/WPlate/1998-09/21/074l-092198-idx.html

DBS DEAL IN WORKS
Issue: Satellite TV
Congress may pass legislation in this session that would permit satellite TV
companies to provide local broadcast signals. Bills are being introduced in
both the House and Senate. Because of a recent court decision and agreement
in the industry the bills are being given a last minute push. Under the
bills must-carry rules for local station service by DBS providers would take
effect in the future.
[SOURCE: Broadcasting & Cable (10,11), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com

===========
ADVERTISING
===========

FORD TO SPONSOR TIME'S SPECIAL REPORTS ON ENVIRONMENT,
IN UNUSUAL AGREEMENT
Issue: Advertising/Content
In an unusual agreement bridging advertising and editorial content, Ford
Motor Company, eager to be seen as "eco-friendly," will be the exclusive
sponsor of a series of environmental articles in Time magazine. Time will
run stories about eco-heroes in four special reports during the
next year, accompanied by Ford advertising. As part of the deal (financial
details of which were not disclosed), Ford gets "first look" at any
extensions of the heroes theme. Charles Axelrod, Time's international
editor admitted that the section isn't likely to feature stories profiling
environmentalists battling the auto industry. That would be like running
"airline ads next to stories about airline crashes," he said.
[SOURCE: Wall Street Journal (B8), AUTHOR: Sally Beatty]
http://wsj.com

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