January 1999

TELEPHONY
The Telecom Act's Phone-y Deregulation (WSJ)
Ameritech Repair Bill: Millions in Fines (ChiTrib)
Sleepy Telcos Wake Up to Fast Access (ZDNet)

INTERNET
Filtering Bill Comes to Life Again in Senate (CyberTimes)
Parsing the Promise of 'Unlimited' Access (CyberTimes)
U.S. Argues Case on Online Smut Law (CyberTimes)
Judge Rules on Online Porn Statute (WP)

ANTITRUST
Microsoft, Justice Clash Over Barrage of E-Mail (WP)
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TELEPHONY
=========

THE TELECOM ACT'S PHONE-Y DEREGULATION
Issue: Competition [Op-ed]
Yesterday's high court ruling that upheld the FCC's authority to oversee the
local implementation of the 1996 Telecom Act, does not put to rest
discussion of weather or not the act is the most effective means of
encouraging competition in local markets. Mr. Crandall questions the
ultimate wisdom of the act's unbundling requirements of local incumbent
carriers. "Why should these firms invest in new, often risky technology for
delivering advanced, high-speed services if they are to be required to offer
any such new facilities to their rivals at cost?" he wonders. Perhaps the
simplest and most effective way to facilitate competition, according to
Crandall, is through genuine deregulation, which eliminates "mandatory
wholesale leasing of pieces of an incredibly complicated network at prices
that are based on regulators' imperfect understanding of cost."
[SOURCE: Wall Street Journal (A22), AUTHOR: Robert Crandall (Brookings
Institution Fellow)]
http://wsj.com/

AMERITECH REPAIR BILL: MILLIONS IN FINES
Issue: Mergers
Rather than upgrade its repair standards to meet the requirements of the
Illinois Commerce Commission, Ameritech has paid multimillion dollar fines.
This year's penalty will be $16 million. Ameritech acknowledged this during
an ICC hearing concerning the company's merger with SBC. ICC staff believe
that Ameritech pays the fines instead of improving service because the fines
are cheaper. ICC hearings on the merger continue through Friday and a
decision is expected in April.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,SAV-9901270380,00.html

SLEEPY TELCOS WAKE UP TO FAST ACCESS
Issue: Bandwidth
Recent developments may mean that you can get Asymmetric Digital Subscriber
Line (ADSL) service soon. Worried about cable access that cold allow you to
get TV, Internet and phone service from the "cable guy," the telephone
companies are getting more aggressive with rollout plans for high-speed data
service over traditional cooper wire. The industry has finalized ADSL
standards http://www.zdnet.com/zdnn/stories/news/0,4586,2153527,00.html,
SBC Communications announced the biggest ADSL roll-out to date
http://www.zdnet.com/intweek/stories/news/0,4164,2186384,00.html, and an
announcement from NBC and CNET
http://www.zdnet.com/zdnn/stories/news/0,4586,2188875,00.html means there
will be some place to go with all this speed. But there are still some
hurdles: telecos are not making the service available in all areas
http://www.zdnet.com/intweek/stories/prtarchivestory/0,4356,370856,00.htm,
the service is only 350 kbps (not the 1.5 MBPS advertised)
http://www.zdnet.com/anchordesk/story/story_2981.html, and, well, the
telcos are not the most tech-savvy people out there
http://www.zdnet.com/sr/stories/issue/0,4537,377228,00.html -- it will be
awhile before ADSL installation is a routine operation.
[SOURCE: ZDNet, Jesse Berst's Anchor Desk]
http://www.zdnet.com/anchordesk/story/story_3031.html

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INTERNET
========

FILTERING BILL COMES TO LIFE AGAIN IN SENATE
Issue: Legislation/Universal Service
Senator John McCain (R-AZ) http://www.senate.gov/~mccain reintroduced a
bill last week that would require schools and libraries that receive federal
funds from the so-called E-Rate program to install filtering technology to
block children's access to objectional material online. Some $427 million
has been given to schools and libraries around the country through the
E-Rate program. Sen McCain's bill mandates filters only for school
computers, which are used strictly by minors and, in the case of libraries,
it states only that at least one of the library's computers be equipped with
technology to protect minors. The bill also allows local control over the
choice of technology, and what should be filtered. Cheryl Williams, director
of education technology programs for the National School Boards Association
http://www.nsba.org/ said such a requirement would be a bureaucratic
hurdle for local school boards. "This really strikes me as language designed
to support an industry -- not to protect children. It is particularly
insidious from that standpoint," Ms. Williams said. "It is just one more
thing that makes it more difficult to get [Internet funds for schools].
Already there is a lot of paperwork. Already there is a lot of work that has
to be done at the local level -- that is difficult for districts that are
small. I understand the need for a certain level of this, but already it is
not an easy thing to do...It is designed to discourage taking advantage of a
program that we hoped would equalize districts." [See a copy of the bill
http://www.senate.gov/~commerce/legis/legis.htm and Sen McCain's Press
Release http://www.senate.gov/~mccain/internet.htm]
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/education/27education.html

PARSING THE PROMISE OF 'UNLIMITED' ACCESS
Issue: Internet Access
Many ISPs advertise unlimited Internet access for about $20/month. But
customers who really want "unlimited" access may find themselves receiving
warnings, having their session disconnected, or being terminated from a
service altogether. The ISPs contend that they are in business to provide
active sessions -- not letting computers sit idly logged onto their systems.
Consumer advocates say that the ISPs are practicing false advertising. "It's
like with President Clinton," said Steve Dougherty, director of Internet
operations for EarthLink Network Inc., a San Diego-based ISP. "It depends on
how you define 'access.'"
[SOURCE: CyberTimes, AUTHOR: Matt Richtel mrichtel( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/articles/27access.html

U.S. ARGUES CASE ON ONLINE SMUT LAW
Issue: Internet Regulation
The Justice Department closed its defense of the Child Online Protection
Act yesterday arguing that Internet is not a special playground exempt from
the rules society has created for the physical world. "The Internet is not a
private playground. It can be regulated," said Karen Stewart, a DOJ lawyer.
"The true premise of the Child Online Protection Act is quite
straightforward, that in the real physical world...our society has
determined it is in the public interest to restrict minor's access to adult
entertainment material, and there are a number of laws throughout the
country to this effect." The ACLU, however, argued that the law is much
broader than supporters suggest, and threatens a much wider range of
Internet speech. "The result is going to be that they are going to
self-censor, or they are going to erect a barrier that deters adults from
visiting their sites," Ann Beeson, and ACLU lawyer, argued. "The fundamental
issue is whether the legislation which Congress passed has an inhibiting and
deterrent effect on free speech," she said. "And all of the evidence
summarized earlier shows that it does." The arguments ended the five day
hearing on the law. A ruling is expected soon.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/articles/27copa.html

JUDGE RULES ON ONLINE PORN STATUTE
Issue: First Amendment
A Philadelphia judge who has issued a restraining order against the Child
Online Protection Act is expected to rule by Monday whether a preliminary
injunction - a more permanent delay - should be issued. U.S. District Judge
Lowell Reed Jr. will decide whether the federal law designed to keep online
pornography away from children violates free speech guarantees or is a
permissible way to keep tabs on potentially harmful material. The act would
require commercial Web sites to collect a credit card number or some other
access code as proof of age before allowing users to view material deemed
harmful to minors. Tuesday during final arguments in the case Ann Beeson, a
lawyer for the American Civil Liberties Union, said the act would produce "a
devastating effect on free speech." Justice Department lawyer Karen Stewart
dismissed Beeson's view as "a doomsday scenario" and said, "The Internet is
not a private playground. It can be regulated."
[SOURCE: Washington Post (Online), AUTHOR: Joann Loviglio (Associated Press)]
http://www.washingtonpost.com/wp-srv/WAPO/19990127/V000103-012799-idx.html

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

MICROSOFT, JUSTICE CLASH OVER BARRAGE OF E-MAIL
Issue: Antitrust
Paul Maritz, a top executive at Microsoft Corp., testifying in the Microsoft
antitrust trial Tuesday, refused to admit that his company sought to ensure
that Netscape would not compete with Microsoft's dominant Windows operating
system. Justice Department lawyer David Boies presented electronic mail
messages from Microsoft officials suggesting they were an antitrust smoking
gun, a clear demonstration of Microsoft's attempt to illegally persuade
Netscape not to compete with Windows. Maritz said the e-mail messages were
not trying to eliminate Netscape as a competitor but to move them within a
narrow set of Internet technologies. The government alleges that Microsoft
saw Netscape's Navigator browser software as a possible threat to Windows
and at a June 21, 1995 meeting tried to convince Netscape not to make
browsers for personal computers running a new version of Windows.
[SOURCE: Washington Post (E1), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm
See also:
U.S. ATTORNEY IN MICROSOFT CASE STEALS SPOTLIGHT
[SOURCE: Wall Street Journal (B1), AUTHOR: John R. Wilke & David Bank]
http://wsj.com/
JABS AT COMPANY FIGURE INTO TRIAL
[SOURCE: Washington Post (E1), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/stories/19
99/pcmakers012799.htm

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INTERNET
State Lawmakers Ready Scores of Internet Bills (CyberTimes)
College Freshmen's Internet Use A Way Of Life, But
Disparities Emerge (NYT)

TELEPHONE
Telephone Service for Indians on Reservations (FCC)

PUBLISHING
Cross-Media Deals Mean Bonanzas for Publishers (NYT)

OWNERSHIP
Newspapers Acquire Online Classifieds Network (CyberTimes)

BUDGET ISSUES
Gore Announces Information Technology Initiative (WP)

PRIVACY
Privacy Groups to Announce Boycott of Intel (WP)

INTERNATIONAL
In China, A Telecom Free-for-All (WP)
Satellite-Radio Battle Looms as Firms Attract Financing for
2000 Launch (WSJ)
WRC-2000 Advisory Committee Schedules Sixth Meeting (FCC)

FOUNDATIONS
Ex-mayor eyes post at Packard Foundation (SJ Merc)

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

STATE LAWMAKERS READY SCORES OF INTERNeT BILLS
Issue: Internet Regulation
49 of the 50 state legislatures will meet this year and many are expected to
address Internet concerns: protecting children from the evils of cyberspace,
controlling unwanted commercial e-mail and protecting consumer privacy
online. Some 1,200 to 1,500 proposals dealing with the Internet are expected
to be filed, according to Paul Rusinoff, state policy counsel for the
Internet Alliance http://www.internetalliance.org, the largest high-tech
and Internet trade association in the country. "It's interesting if you look
at this context," Mr. Rusinoff said. "We saw some of the first state bills
dealing with the Internet in 1995. There were three of them. Last year, the
association looked at over 700 in each and every state that referred to the
Internet in one form or another. They were not all bills that we had trouble
with, but there was just a lot of legislation. There's no question that this
is a very hot topic. And I think as more and more legislators go online
themselves, and start hearing from constituents, the issues are going to
multiply."
[SOURCE: CyberTimes, AUTHOR: ] 1/24/99
http://www.nytimes.com/library/tech/99/01/cyber/articles/24states.html

COLLEGE FRESHMEN'S INTERNET USE A WAY OF LIFE, BUT DISPARITIES EMERGE
Issue: Internet/Education
A new study reports that the Internet has become an integral educational
tool for most college freshman. Over 82% of students surveyed say they use
the Internet in doing schoolwork. The survey, however, found a disturbing
disparity in computer use between types of institutions. While 80.1% of
students at elite private colleges report using computers regularly, only
41.1% of students attending traditionally black public institutions said the
same. "The disparity came as a kind of shock," said Alexander W. Astin,
founding director of the annual freshman poll . "Clearly, the survey shows
an inequity that will exacerbate other inequities." Craig E. Runde, director
of the International Center for Computer Enhanced Learning at Wake Forest
University, spoke of the importance of Internet use; "if you don't have
access to it, your work will suffer in comparison with those who do. It's
like not having a telephone. You can get along by using the telephone booth
on the street corner, but not very well."
[SOURCE: New York Times (A11), AUTHOR: William Honan]
http://www.nytimes.com/library/tech/99/01/biztech/articles/25frosh.html

=========
TELEPHONE
=========

TELEPHONE SERVICE FOR INDIANS ON RESERVATIONS
Issue: Minorities/Telephone
From the Public Notice: The Federal Communications Commission plans to hold
several public hearings entitled: "Overcoming Obstacles to Telephone Service
for Indians on Reservations". The first hearing will be held Friday, January
29, 1999 at the Indian Pueblo Cultural Center at 2401 12th Street, N.W.,
Albuquerque, New Mexico, from 8:00 a.m. until 12:30 p.m. The FCC is
responding to concerns that Indians on reservations, in comparison to other
Americans, have less access even to basic telephone service. At these
hearings, the FCC seeks to learn the reasons for this lack of telephone
service and to determine what specific actions the FCC might take to improve
access to telephone service on Indian reservations.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/OCBO/da990201.html

==========
PUBLISHING
==========

CROSS-MEDIA DEALS MEAN BONANZAS FOR PUBLISHERS
Issue: Publishing
These days it seems that book publishers are relying on all sorts of media
alliances for help in peddling their books. On the nightly news one might
see either Peter Jennings or Tom Brokaw address one of the themes central to
the best selling books they have authored. Perhaps most unexpected is a
joint campaign involving Coca-Cola, in which excerpts of HaperCollins novels
will be given away in packages of Diet Coke. "Everybody is doing it right
now," Terry Newell, of Time Life's custom publishing, "The margins in
publishing are tight and the returns are affecting everybody's business.
Everyone is looking for alternative ways to increase their revenues and
decrease their risk."
[SOURCE: New York Times (C1), AUTHOR: Doreen Carvajal]
http://www.nytimes.com/yr/mo/day/news/financial/book-publicity-media.html

=========
OWNERSHIP
=========

NEWSPAPERS ACQUIRE ONLINE CLASSIFIEDS NETWORK
Issue: Ownership
Classifieds are an $18 billion dollar business. As they move on, two groups
battle for dominance: traditional newspapers who want to maintain their hold
and new Internet players who want to capture the market by creating new
ways to advertise cars, jobs and real estate. It is expected that later
today AdOne, which runs an online classified advertising network called
Classified Warehouse, will announce that it has been acquired by a group of
investors that includes Media News, Advance, Scripps-Howard, Hearst and
Donrey Communications. Together, these companies represent 350 newspapers
around the country. The online ads will be available on Lycos which is a
part-owner of AdOne."It's a classic case of real genuine synergy that a
Hearst or an Advance or a Media News group could not get on its own without
spending millions and millions of dollars," said Brendan Burns, chief
executive of AdOne. Napoli reports: What the groups do is something the
individual papers can't easily accomplish on their own -- build the
technology to turn information from print classifieds into searchable
databases online. The consortia also strike deals to place the merged
classifieds in various places online to get them more visibility, and sell
the power of those databases collectively in categories like cars, jobs, or
real estate.
[SOURCE: CyberTimes, AUTHOR: Lisa Napoli napoli( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/articles/25classifieds.html

=============
BUDGET ISSUES
=============

GORE ANNOUNCES INFORMATION TECHNOLOGY INITIATIVE
Issue: Budget Issues
Calling it "IT squared," Vice President Al Gore Sunday announced a proposal
to increase government investment in information technology by $366 million.
The plan, which is to be included in President Clinton's fiscal year 2000
budget proposals, will beef up computer and engineering capabilities and
study the effects that information technology has on the economy. The
funding will go to several agencies with the Department of Defense receiving
$100 million and the Department of Energy receiving $70 million. Vice
President Gore said the expenditures will help American's keep up with the
current explosion in human knowledge. "At a time when 60 percent of the new
jobs being created require advanced skills, only 15 percent of our people
have those skills," he said. "We must renew education, and we must make the
investments that enable people to keep learning for a lifetime."
[SOURCE: Washington Post (Online), AUTHOR: Maggie Fox (Reuters)]

=======
PRIVACY
=======

PRIVACY GROUPS TO ANNOUNCE BOYCOTT OF INTEL
Issue: Privacy
Junkbusters Inc. and the Electronic Privacy Information Center are
announcing a boycott today of Intel Corporation. Their complaint is the new
technology in the upcoming line of Pentium III computer chips that helps
identify consumers across the Internet. The groups are asking the technology
be disabled on privacy grounds. An Intel spokesman said Sunday the company has
been in talks about its technology for several weeks with Junkbusters and
previously had meetings planned this week with the boycott organizers. Intel
announced last week that its new Pentium III chip will by default transmit
its unique serial number internally and across the Internet to help verify
the identity of users. Consumers can turn the feature off, but it turns
itself back on each time the computer is restarted. Intel says its
technology is needed to encourage trust in Internet sales and also can be
used to avoid piracy by preventing a single copy of a software program from
being installed on several machines. Rep. Edward J. Markey (D-MA) urged
Intel on Friday to reconsider its plans, "to better balance both commercial
and privacy objectives."
[SOURCE: Washington Post (Online), AUTHOR: Ted Bridis (Associated Press)]
http://www.washingtonpost.com/wp-srv/washtech/intel012599.htm

=============
INTERNATIONAL
=============

IN CHINA, A TELECOM FREE-FOR-ALL
Issue: Censorship
Local Chinese police arrested two men about a year ago and accused them of
"endangering national security" and committing "a new type of crime." The
electronics store of brothers Chen Zhui and Chen Yan also lost its computer
and $6000 in the police raid. Their crime: two years ago as a promotion they
began allowing free telephone calls to the United States via the Internet.
China's telephone monopoly, China Telecom, asked the police to take action.
Chen Zhui is now suing the police, arguing that his actions were not
criminal because there was no law banning Internet phone service. (A law has
since been passed.) Last week Chen won the first round. The case is being
widely watched because it could suggest what will become of state control of
communications, Internet growth, the flow of information and the development
of a nationwide cable network now being installed by a governmental body
that could become a competitor to China Telecom. Meanwhile Chen Zhui is
planning to move to the U.S. where his wife and child already reside. He
says, "I call them every day - on my personal Internet phone."
[SOURCE: Washington Post (A1), AUTHOR: John Pomfret]
http://www.washingtonpost.com/wp-srv/WPlate/1999-01/25/101l-012599-idx.html

SATELLITE-RADIO BATTLE LOOMS AS FIRMS ATTRACT FINANCING FOR 2000 LAUNCH
Issue: Radio/Technology
Few consumers know they exist but two companies are preparing to bring radio
to the United States via satellite in 2000. Wall Street knows and is giving
the projects high-profile financing. The companies intend to transmit 100
digital "channels," offering everything from folk rock to political chat to
free-form programming. Truck drivers, long-haul commuters and avid car users
are primary targets. Besides CD Radio and XM Satellite Radio, a third firm,
WCS Radio, has tentative plans to begin service in 2001 or 2002. The fight
for recognition does not appear easy. "We are going to have to go through an
education process," says Hugh Panero, XM's chief executive. "We're going to
have to create some excitement." XM and CD Radio each plan to spend $100
million in promotional spending. Matt Feinberg, an industry observer, says
the new broadcasters must challenge norms. "We're used to radio in our cars
- and local stations." He suggests the services be aimed at younger
listeners and that the service be given away on a trial basis or the special
radios be installed on new cars before they are sold.
[SOURCE: Wall Street Journal (B9D), AUTHOR: Brian Steinberg]
http://wsj.com/

WRC-2000 ADVISORY COMMITTEE SCHEDULES SIXTH MEETING
Issue: International
The sixth meeting of the WRC-2000 Advisory Committee will be held on Friday,
February 19, 1999, from 10:00 am to 12:00 noon, in the Commission Meeting
Room, Room TW- C305, 445 12th Street, S.W., Washington, DC. A draft agenda
of the meeting is attached. At this meeting, the Advisory Committee will
consider status reports from its informal working groups and any consensus
views or proposals. This meeting is open to the public. The Commission's
WRC-2000 world wide web site (http://www.fcc.gov/wrc-99) contains the latest
updated information and agendas on all scheduled meetings and Advisory
Committee matters. WRCs, under the auspices of the United Nations, are
where the world comes together to decide issues that effect the development
of telecommunications provided by using radio spectrum. For further
information on this meeting schedule, contact Nancy Wiley of the
International Bureau's Planning and Negotiation Division (telephone:
202-418-2213).
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/International/Public_Notices/1999/pnin9009.html

===========
FOUNDATIONS
===========

EX-MAYOR EYES POST AT PACKARD FOUNDATION
Issue: Foundations
Former San Jose Mayor Susan Hammer is trying to land the job as the
executive director of the David and Lucile Packard Foundation. Packard has
~$9 billion in assets. "The Packard Foundation can get anybody it wants,"
said a non-profit executive. "When you get to be where they are, people pay
attention."
[SOURCE: San Jose Mercury News, AUTHOR: Chris Nolan]
http://www.mercurycenter.com/business/top/079294.htm

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TELEPHONY
Justices Decline To Review Suit Of Baby Bells (WSJ)
Ads' Message: Talk Cheap (WP)

MINORITIES
TV Notes: Of Race and Roles (NYT)
FCC: Minorities Not Getting Fair Shake (B&C)
Chinese Youth Lack Net Access, Poll Shows (SJ Merc)

BROADCAST
Draft bill would raise caps, lower FCC profile (B&C)
In Brief: Media Access Project (B&C)

MERGER
A Surfer Bets on High Speed and a Big Deal (WSJ)
Spread of High-Speed Access Expected to Transform
Internet Usage (SJ Merc)

INTERNET
Court to Decide on Internet Porn (WP)
China Court Rules on Internet Case (WP)
Conference Underscores Growing Role of Encryption (CyberTimes)
Lyrics Site in Copyright Dispute Is Closed (CyberTimes)
Distance Learning Even Reaches Ships at Sea (CyberTimes)

MAGAZINES
Disney's Miramax Is Nearing a Pact With Hearst About Planned Magazine

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

JUSTICES DECLINE TO REVIEW SUIT OF BABY BELLS
Issue: Telephony
The Supreme Court refused to hear an appeal by three of the nation's Baby
Bells who say they are unfairly barred from the lucrative long-distance
telephone market. SBC Communications Inc., Bell Atlantic Corp. and U S West
Inc. challenged portions of the 1996 telecommunications overhaul law. The
high court's action came without comment. MCI, AT&T and Sprint had urged a
lower court ruling be left intact. The Baby Bells complained because the new
law singles them out to open their markets to rival companies for local
service before they can begin long distance service. Federal Communications
Commissioner William Kennard said, "This decision confirms the logic of the
telecom act: that competition breeds competition."
[SOURCE: Wall Street Journal (B7), AUTHOR: Mark Wigfield & Scott Ritter]
http://wsj.com/

ADS' MESSAGE: TALK CHEAP
Issue: Long Distance
Broadpoint Communications Inc. of Landover, MD is bringing commercials to
telephones and callers are choosing to listen. The company is offering two
free minutes of long distance service for every 10 to 15 seconds worth of
ads a customer hears first. Nationwide service began on January 12. Kelly
McGlauflin was in the pilot program in Pittsburgh and is already a regular
user. McGlauflin, an airline pilot, says he spends two minutes listening to
ads in his hotel room and then speaks for about 20 minutes with no phone
bill. The ads require a button be pushed to go from one to the other so a
user cannot block them out completely. Already the company says 50,000
people have signed up for the service. To join, prospective customers reveal
demographic information - household income, ethnic heritage, preferred
hobbies - on an electronic form the find on BroadPoint's Web site
www.broadpoint.com. This procedure allows the company to pick the best
advertisers for the customer. Advertisers pay BroadPoint 6 to 24 cents for
every message a customer hears. Subscribers call a toll-free access number
and enter a secret personal ID number before they dial the phone number.
Callers typically choose to hear seven or eight ads and accrue about 15
minutes of free service per call.
[SOURCE: Washington Post (A1), AUTHOR: Mark Leibovich]
http://www.washingtonpost.com/wp-srv/WPlate/1999-01/20/141l-012099-idx.html

==========
MINORITIES
==========

TV NOTES: OF RACE AND ROLES
Issue: Television/Minorities
At a semiannual convention of TV critics in New York, where the major
networks have been parading this season's best and brightest, sightings of
black actors and producers have been few and far between. PBS's
presentations, however, painted a very different picture from those of the
commercial networks. Over half of the programs spotlighted by PBS were by or
about Africans or African-Americans. Kathy Quattrone, PBS's programming
chief, said the season's schedule was intended to show the continuing effort
of public television to weave together the different genres and diverse
voices of the American landscape. Some of PBS's upcoming programs include a
"Kennedy Center Presents" tribute to Muddy Waters (Jan. 27), a series in
February called "I'll Make Me a World: A Century of African-American Art,"
and a "Frontline" profile of Paul Robeson (Feb. 24).
[SOURCE: New York Times (B10), AUTHOR: Lawie Mifflin]
http://www.nytimes.com/yr/mo/day/news/arts/tv-notes.html

FCC: MINORITIES NOT GETTING FAIR SHAKE
Issue: Minorities
A Federal Communications Commission-sponsored report prepared by the Civil
Rights Forum on Communications Policy says many big advertisers
intentionally steer away from black and Hispanic audiences or refuse to pay
prevailing ad rates to minority-targeted stations. FCC Chairman William
Kennard charged last week that African-American and Spanish-language outlets
face discrimination from major marketers. He said, "These practices are not
only unfair, they do not make any business sense." Commissioner Gloria
Tristani, Rep. Carolyn Kilpatrick (D-MI), civil rights leaders and
advertising agency officials joined Chairman Kennard at a press conference to
announce the report conclusions. A spokesman for House Telecommunications
Subcommittee Chairman Billy Tauzin (D-LA) reached a different conclusion,
"If a marketer doesn't spend money, it doesn't mean he is guilty of
discrimination." He said the $12,000 report appeared to be "a waste of
taxpayers' money." Report author Kofi Ofori stopped short of blaming racist
practices for the revenue discrepancies, conceding that the survey response
was too small, but he did suggest further study. The report focused
primarily on radio because TV generally does not aim to reach the same
narrow demographics, but some Spanish-language TV stations were included.
According to the report, revenues at minority-oriented outlets
under-perform, even when the stations are ratings winners.
[SOURCE: Broadcasting&Cable (p. 108), AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/

CHINESE YOUTH LACK NET ACCESS, POLL SHOWS
Issue: Minorities
A study by the China Youth Development Foundation and the China Youth
Research Center finds that 70% of China's urban youth have no access to the
Internet and only a handful are regular web surfers; 69.1% said they have
"no way to get on-line," but 66% of young people consider the Internet a
"miracle of the modern world." The poll reached 6,500 young people between
the ages of 14 and 28 in nine Chinese cities and provinces. More than 2.1
million Chinese used the Internet last year, state tallies show, up from
670,000 in 1997. Speaking in Beijing earlier this month, MIT professor
Nicholas Negroponte predicted Internet use in China would balloon to 10
million by the year 2000.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
http://www.mercurycenter.com/breaking/headline2/072803.htm

=========
BROADCAST
=========

DRAFT BILL WOULD RAISE CAPS, LOWER FCC PROFILE
Issue: Broadcast and Cable Regulation
Senate Commerce Committee Chairman John McCain (R-AZ.) is floating a draft
bill that would allow broadcast networks to own many more TV stations and
would allow satellite companies to carry local broadcast signals. The TV
ownership cap would rise from 35% to 50% of the national viewing audience, a
policy change for which networks are fighting hard but which network
affiliates are not supporting. The draft bill would allow satellite
broadcasters to import distant network signals to households unable to
receive over-the-air TV until January 1, 2002. At that time satellite TV
companies would have to carry all broadcasters' local signals.
Representatives of the satellite TV industry oppose phasing out the distant
network signal business. Local broadcasters want Congress to ensure that DBS
providers will carry all their signals as soon as they are technically able.
The bill would also reduce the power of the Federal Communications
Commission over broadcasters by requiring a "supermajority" of four out of
five votes to approve new broadcast regulation. It would repeal the FCC's
ability to approve mass media mergers and give that authority wholly to the
Justice Department. The Equal Employment Opportunity Commission would
receive the FCC's jurisdiction over EEO rules for broadcasters. Broadcast
lobbyists say Congress is unlikely to agree to such drastic limitations on
the FCC's powers.
[SOURCE: Broadcasting&Cable (p. 3), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/

IN BRIEF: MEDIA ACCESS PROJECT
Issue: Digital TV
Media Access Project last week asked the Federal Communications Commission
to impose fees on home shopping channels of digital broadcasters. Home
shopping, infomercials and other direct marketers were exempted from a 5%
fee on their revenue for ancillary digital services. MAP claims the
exemption should not have been granted. The FCC said home shopping was
exempt because the services pre-dated the rule and because viewers don't pay
for the programming. MAP said that Congress intended that programming paid
for by third parties be subjected to the fee.
[SOURCE: Broadcasting&Cable (p. 10), AUTHOR: B&C Staff]
http://www.broadcastingcable.com/

======
MERGER
======

A SURFER BETS ON HIGH SPEED AND A BIG DEAL
Issue: Merger
In the largest Internet merger to date, At Home Corp. has agreed to exchange
$7.5 billion in stock to acquire Excite Inc., one of the World Wide Web's
busiest sites. At Home has exclusive rights through the year 2002 to deliver
high-speed Internet access to nearly 60 million North Americans over the
networks of 19 cable television operators and is enjoying sky-high stock
prices because consumers and companies are beginning to realize the value of
that access. America OnLine is aggressively lobbying at the federal and local
levels to force cable providers to open their networks to At Home
competitors. AOL wants cable companies to use their Internet service. At
Home's CEO, Tom Jermoluk, says the content offerings, the audience and the
targeted advertising capabilities of Excite are key to building At Home into
a major media brand before the exclusive rights expire. The cable companies
gave At Home the exclusive contract and a revenue split that gives At Home
35% of subscribers $39.95 monthly fee.
[SOURCE: Wall Street Journal (B1), AUTHOR: David Bank]
http://wsj.com/
See Also:
EXCITE INC. TO BE BOUGHT BY AT HOME
[SOURCE: Washington Post (F1), AUTHOR: Leslie Walker]
http://www.washingtonpost.com/wp-srv/WPlate/1999-01/20/048l-012099-idx.html
NET LANDSCAPE GETS NEW FEATURE
[SOURCE: San Jose Mercury News, AUTHOR:K Oanh Ha]
http://www.mercurycenter.com/business/top/062513.htm

SPREAD OF HIGH-SPEED ACCESS EXPECTED TO TRANSFORM INTERNET USAGE
Issue: Bandwidth
What will higher-speed Internet access mean for users? Many people were
attracted to the Internet when they learned there's lots of info out there
that they want: sports scores, stock prices and stories about favorite
entertainers. Higher bandwidth means ports scores will be accompanied by
instant replays, stock prices will be supplemented by interviews with
company officials, and links to stories about entertainers will give way to
on-demand viewing of their performances. Tuesday saw the announcement that
high-speed Internet service provider At Home will purchase the Excite family
of websites as well as the announcement by NBC's Snap Web site announced
that it may precede Excite in offering Web content specifically tailored for
high-speed users. Jupiter Communications estimates that there are only
500,000 residential high-speed users now, but projections call for it to
grow to 2 million by the end of 1999, with more than 11 million households
expected to have such links by 2002. "We can create a richer experience for
the high-bandwidth users," said Edmond Sanctis, chief operating officer of
Snap. "The user is interested in accessing bigger files, richer media and
more graphical content."
[SOURCE: San Jose Mercury News, AUTHOR: Stephen Buel sbuel( at )sjmercury.com]
http://www.mercurycenter.com/business/center1/hispeed012099.htm
MERGER BOOSTS NEXT-GENERATION USERS
[SOURCE: San Jose Mercury News, AUTHOR: K Oanh Ha kha( at )sjmercury.com]
http://www.mercurycenter.com/business/center1/( at )home012099.htm

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

COURT TO DECIDE ON INTERNET PORN
Issue: Internet/Content
The Child Online Protection Act, Congress's second attempt to regulate
pornography on the Internet, has encountered just as much opposition as it's
predecessor, which was struck down in a court ruling last year. The Act
would require commercial Webs sites to gather proof of age, before allowing
Internet users to access any material deemed "harmful to minors." The
American Civil Liberties Union and a group of over 20 organizations, ranging
from Journalist to Internet service providers, are challenging the law on
First Amendment grounds. "If Congress wins this, the Internet would go from
being the most revolutionary, creative technology in history to a pretty
tame, often meaningless means of communicating only about things that are
fit for a 6-year-old," said Stefan Presser, legal director of the ACLU of
Pennsylvania. U.S. District Judge Lowell Reed, who temporarily blocked
enforcement of the law, is expected to rule on the case by Feb. 1.
[SOURCE: Washington Post (Online), AUTHOR: Joann Loviglio (Associated Press)]
http://www.washingtonpost.com/wp-srv/WAPO/19990120/V000356-012099-idx.html

CHINA COURT RULES ON INTERNET CASE
Issue: International/Internet
Lin Hai, a Chinese software entrepreneur, was convicted Wednesday of
subversion for supplying e-mail addresses to dissidents abroad and sentenced
to two years imprisonment. Lin's wife, Xu Hong, was in the Shanghai court
for the sentencing. She said that she does not know whether they will
appeal. Lin was convicted of "inciting the overthrow of state power" for
giving e-mail addresses of 30,000 Chinese computer users to "VIP Reference,"
a pro-democracy journal published on the Internet by Chinese dissidents in
the United States. Lin is the first person convicted in China's effort to
crush dissent in cyberspace even as it promotes the Internet for economic
and educational use.
[SOURCE: Washington Post (Online), AUTHOR: Joe Mcdonald (Associated Press)]
http://www.washingtonpost.com/wp-srv/WAPO/19990120/V000398-012099-idx.html

CONFERENCE UNDERSCORES GROWING ROLE OF ENCRYPTION
Issue: Encryption
"It's been said that public key encryption is a solution in search of a
problem," said Jim Bidzos, president of RSA Data Security. "Well, we've
found the problem and its called e-commerce." The company has been
sponsoring a conference on encryption software since 1991. Once an arcane
and highly mathematical technology that was used mainly by the Department of
Defense, encryption is now becoming a concern of credit card companies
securing transactions.
[SOURCE: CyberTimes, AUTHOR: Peter Wayner pwayner( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/articles/20rsa.html

LYRICS SITE IN COPYRIGHT DISPUTE IS CLOSED
Issue: Copyright
The International Lyrics Server http://www.lyrics.ch, a popular Web site
containing the words to more than 100,000 songs, was closed last week after
music publishers accused the site's Switzerland-based operators of copyright
violations and police officers seized their computers, the site's founder
said. The site had averaged ~100,000 visitors a day -- people searching for
the song lyrics of popular bands, show tunes and more obscure works. The
police crackdown appears to be another "success" for the music industry as
it attempts to stop Internet sites that reproduce copyrighted material
without permission. "They think that they have lost millions through our
server," said the server's founder, "but they have to prove this, and they
didn't prove it yet. If they can, this could cost me millions [in damages]
-- which I never can pay back. But I think the main goal is not to get
money, because I don't have too much of that, but to have something of an
example. They want [use this episode] to tell other sites that it's really
clear you don't have any chance."
[SOURCE: CyberTimes, AUTHOR: Matthew Mirapaul mirapaul( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/articles/20lyrics.html

DISTANCE LEARNING EVEN REACHES SHIPS AT SEA
Issue: EdTech
Georgia College & State University in Milledgeville (GA), Old Dominion
University in Norfolk (VA) and Troy State University in Troy (AL) are all
participating in a program to make graduate-level course work available to
men and women serving in the Navy. Using computers, satellite transmissions
and video conferencing, courses are now available on two aircraft carriers
and could be available on all 12 eventually. "There is a real classroom with
students who consider one another classmates, a professor with lots of
information who has real expectations and a curriculum administered by a
real institution," commented Chief Warrant Officer Anthony L. Cruz, who says
he appreciates "the value of a higher education in life" and hopes to earn a
masters degree through the program.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels mendels( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/education/20education.html

=========
MAGAZINES
=========

DISNEY'S MIRAMAX IS NEARING A PACT WITH HEARST ABOUT PLANNED MAGAZINE
Issue: Books/Magazines
Walt Disney Co.'s Miramax Films unit is nearing an agreement with Hearst
Corp. to have Hearst distribute and take a partial ownership stake in a new
Miramax magazine called Talk. Former New Yorker editor Tina Brown was
recruited last year to run the magazine. For Miramax, part of the rationale
for giving up an ownership stake is to ensure a strong commitment from its
distribution partner. Miramax would benefit from Hearst's publishing
expertise. Hearst would be adding a high-profile, celebrity-filled title
that would compete with Vanity Fair, which is produced by Conde Nast,
Hearst's biggest rival. Hearst is already known for production of magazines
for women.
[SOURCE: Wall Street Journal (B9), AUTHOR: Bruce Orwall & Wendy Bounds]
http://wsj.com/

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BROADCASTING
FCC Releases Advertising Study (FCC)
Splintering of TV Audience May Be Networks' Downfall (ChiTrib)

INTERNET
Online Publisher Challenges Copyright Law (CyberTimes)
Internet World Gaining Women, Less-Affluent Users As It Grows (ChiTrib)
A New Breed of Internet Surfers (WP)
Electronic-Commerce Initiative Is Set By Top Executives at
17 Companies (WSJ)

COMPETITION
Regulators Seek AOL-Netscape Information (WSJ)
Must AT&T Give Rivals Access To TCI's Network (WSJ)
Auctioned Licenses to Be Resold for Big Gain (WP)

INTERNATIONAL
Speech: International Telecommunications: An Opportunity for U.S. and
EU Joint Leadership (FCC)

ANTITRUST
Economist Testifies Microsoft Confronts Myriad Threats to
Its Windows Software (WSJ)

============
BROADCASTING
============

FCC RELEASES ADVERTISING STUDY
Issue: Advertising/Broadcast/Minorities
From the News Release: Stating that "Minority broadcasters should have a
fair opportunity to compete for ad dollars," FCC Chairman William Kennard
today released a study and conducted a forum on the impact of advertising
practices on minority-owned and minority-formatted broadcast stations. The
study was done by Kofi Ofori, Director of Research for the Civil Rights
Forum. The study provided evidence that advertisers often exclude radio
stations serving minority audiences from ad placements and pay them less
than other stations when they are included. Findings include: 1) Ninety-one
percent of minority radio broadcasters responding to the survey indicated
that they had experience with "no urban" dictates or "no Spanish" dictates:
instructions from advertisers not to buy advertisements on their radio
stations. Those exclusions were often based on stereotypes about the
minority consumers they serve. 2) The dictates that no time be bought on
urban or Spanish stations and the lower rates paid to these stations when
buys were made, reduced their revenues by an average of 63 percent. Chairman
Kennard announced that on February 22 a summit would be held in New York
City to continue this initiative.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Mass_Media/Informal/ad-study/

SPLINTERING OF TV AUDIENCE MAY BE NETWORKS' DOWNFALL
Issue: Television Economics
"The major TV networks, as we know them, are dead," begins Samuelson's
column. The influence of the Big Three networks is gone because of the
popularity of cable and satellite. TV's future is radio -- "a mass of
channels that split the audience into ever-smaller slices based on
interests, lifestyles, temperament, age, income and religion." Networks are
caught in a spiral -- as they lose audience to cable channels, they can
charge less for advertising and, so, have less to spend developing quality
shows -- meaning they lose still more audience to other outlets. NBC,
thought to be the strongest network, is considering converting to a cable
channel. Why? Because cable outlets have two income streams: subscriptions
and advertising.
[SOURCE: Chicago Tribune (Sec 1, p.23), AUTHOR: Robert Samuelson]
http://chicagotribune.com/textversion/article/0,1492,SAV-9901150061,00.html

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

ONLINE PUBLISHER CHALLENGES COPYRIGHT LAW
Issue: Copyright
The online publisher of literary works that are in the public domain was on
the verge of shutting down his site after Congress passed the Sonny Bono
Copyright Term Extension Act of 1998 (CTEA)
http://thomas.loc.gov/cgi-bin/bdquery/z?d105:s.00505: which added 20 years
to most copyrights. But the publisher decided to fight back and he's found
some help: Profs. Lawrence Lessig and Charles Nesson of Harvard Law School,
Jonathan Zittrain of Harvard Law School's Berkman Center for Internet &
Society http://cyber.law.harvard.edu/, and Geoffrey Stewart and Pamela
Jadwin, lawyers with the firm Hale and Dorr. The OJ-caliber team is working
pro bono (all puns intended). The case represents an attempt to reset the
balance between the competing rights of copyright owners and the general
public in the digital age. "People like [the publisher], they are the
spirit of the Net," said Professor Lessig, an expert on Internet law,
constitutional law and other subjects. "These are the logical people to
stand up for the principle of the public domain that the framers of the
Constitution had in mind." The complaint
http://cyber.law.harvard.edu/eldredvreno/complaint.html, filed on Jan. 12,
specifically attacks the provision in CTEA that retroactively extends
copyrights of already written works. In legal papers, the lawyers reminded
the court that the U.S. Constitution, Article I, Section 8, grants Congress
authority "To Promote the Progress of Science and Useful Arts, by securing
for limited Times to Authors and Inventors the exclusive Right to their
respective Writings and Discoveries." Yet, Congress's practice of
continually extending copyright retroactively "means that Congress, in
effect, is granting copyright holders more than a 'limited term,'" the
lawyers wrote.
[SOURCE: CyberTimes, AUTHOR: Carl S. Kaplan kaplanc( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/cyberlaw/15law.html

INTERNET WORLD GAINING WOMEN, LESS-AFFLUENT USERS AS IT GROWS
Issue: Internet
According to results of a Pew Research Center study, the demographics of the
Internet are looking more and more like mainstream America. In the past two
years, Internet use has doubled with about 41% of adults saying they use the
worldwide computer network. One-third of those people say they go online at
least once a week for news. The most popular subject sought on the Internet
-- weather. Use of the Internet to find local news has increased from 27% in
1996 to 42%. Internet users are more likely to read a newspaper than
non-users and to follow the news in general. They are also less likely to
rely on TV news.
[SOURCE: Chicago Tribune (Sec3, p.3), AUTHOR: Tim Jones]
http://chicagotribune.com/textversion/article/0,1492,SAV-9901150376,00.html

A NEW BREED OF INTERNET SURFERS
Issue: Internet
Visitors to the World Wide Web are looking more and more like America as a
whole. According to a new study by the Pew Research Center for People and
the Press, Internet surfers are now less computer savvy, less wealthy, and
include more women than earlier waves of Net devotes. The study found that
email was the most popular Internet activity and weather was the most sought
after type of news. While the Internet is rapidly becoming more mainstream,
the study did find that the Web still attracts users who are younger,
better-educated, and more affluent than the general population.
[SOURCE: Washington Post (Online), AUTHOR: Anne Gearan (Associated Press
Writer)]
http://www.washingtonpost.com/wp-srv/WAPO/19990114/V000865-011499-idx.html

ELECTRONIC-COMMERCE INITIATIVE IS SET BY TOP EXECUTIVES AT 17 COMPANIES
Issue: Electronic Commerce
Top executives of 17 high-profile Internet, media and telecommunications
companies have launched an initiative to address such issues as consumer
privacy online, taxation and data security. The initiative, called the
Global Business Dialogue on E-Commerce, plans to tackle myriad issues facing
businesses as they seek to boost electronic commerce. Other issues that they
have included for consideration are liability for online content,
intellectual property-rights protection, technical concerns about the
Internet, controversial content such as pornography, who has jurisdiction
over Internet transactions, and consumer confidence in e-commerce
transactions. Included among the members are America Online, Time Warner,
IBM, Japan's Fujitsu and Toshiba, Germany's Bertelsmann and France Telecom.
Some privacy advocates and regulators are skeptical. "It is another instance
of corporations getting together and making decisions without actually
listening to consumers," said David Banisar of the Electronic Privacy
Information Center.
[SOURCE: Wall Street Journal (B6), AUTHOR: Andrea Petersen]
http://wsj.com/

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

REGULATORS SEEK AOL-NETSCAPE INFORMATION
Issue: Merger
The Justice Department's antitrust division has requested additional
information about the planned $6.5 billion merger of America Online Inc. and
Netscape Communications Corp., according to people familiar with the
situation. The action does not mean it will attempt to block or modify the
deal, but it does indicate heightened scrutiny. The Government is expected
to study how the deal might affect competition in the market for Internet
software and online services. The law permits either the Federal Trade
Commission or the Department of Justice to try to block the deal in the
first 20 days after an additional information filing. Netscape executive
Barry Ariko was quoted earlier this week as saying the deal is expected to
close by April.
[SOURCE: Wall Street Journal (B6), AUTHOR: Paul M. Sherer & Kara Swisher]
http://wsj.com/

MUST AT&T GIVE RIVALS ACCESS TO TCI'S NETWORK
Issue: Bandwidth/Competition
Local regulators in Portland, OR are considering forcing AT&T to make TCI's
cable network available to competing providers of Internet services. Once
their partnership is finalized AT&T plans to invest billions of dollars in
making TCI's network capable of delivering high-speed Internet access. The
broadband service would be exclusively available to customers through the
TCI affiliate, At Home. Regulators, however, are concerned that AT&T will
have too much control over the future of Internet service if customers are
forced to go through At Home in order to receive high-speed cable modem
access. While the Department of Justice has already authorized the AT&T/TCI
deal, some local regulators want to make access to TCI's network a condition
of the deal's approval. Several communities around the nation are
considering following the lead of Portland's Mount Hood Cable Regulatory
Commission, which has voted to recommend imposing an access condition on the
AT&T/TCI merger. "We all agree that this is a debate that would have been
better to have at the FCC," says commissioner Ruth Miles. "But in the vacuum
of leadership from the federal level, we have made this decision hoping
they'll take notice."
[SOURCE: Wall Street Journal (A1), AUTHOR: Bryan Gruley]
http://wsj.com/

AUCTIONED LICENSES TO BE RESOLD FOR BIG GAIN
Issue: Competition
WNP Communications Inc. of Reston, VA, a small company that bought 40
cellular telephone licenses in a Federal Communications Commission auction
nine months ago, has reached a deal to sell the licenses for $355 million
profit. Because they were classified as a small business they were able to
buy the licenses for $187 million in March. Now they are selling them to
NextLink Communications, a Seattle company founded by cellular phone pioneer
Craig McCaw, for $542 million. The sale, which the FCC must approve,
highlights the Commission's difficulty in carrying out a mandate to use
auctions to give taxpayers the full market value of a scarce public resource
- radio frequencies. In 1993, Congress ordered auctions of licenses after a
decade of handing out cellular telephone licenses by lottery, free of
charge, to applicants who often quickly sold them for millions. The FCC has
no rule barring license winners from quickly selling them, although it has
considered ways to curb the practice, known as "flipping." Over the past
nine months, NextLink officials said yesterday, the value of the licenses
grew in the marketplace as other competitors such as Teligent Inc and
WinStar Communications Corp. found success with similar wireless data and
phone services and equipment manufacturers began to improve the radio
equipment needed for the service.
[SOURCE: Washington Post (E1), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/WPlate/1999-01/15/071l-011599-idx.html

=============
INTERNATIONAL
=============

SPEECH: INTERNATIONAL TELECOMMUNICATIONS: AN OPPORTUNITY FOR U.S. AND
EU JOINT LEADERSHIP
Issue: International
Commissioner Ness' remarks before the European Institute: "...now seems to
be a good time to
take stock of the international telecommunications regulatory issues on the
front burner for both U.S. and EU regulators to identify: (1) those issues
where we occupy common ground and are successfully collaborating to spread
pro-competitive policies around the world; and (2) those issues on which we
differ or where we need to share more information, if we are to have a
chance at reaching common ground to resolve them." Topics include WTO
Agreement Market Access, Accounting Rate Reform, Merger Policies, Bilateral
and Multilateral Agreements, and Spectrum Policy.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Ness/spsn902.html

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

ECONOMIST TESTIFIES MICROSOFT CONFRONTS MYRIAD THREATS TO ITS WINDOWS SOFTWARE
Issue: Antitrust
Richard Schmalensee of MIT said yesterday Microsoft's Windows isn't a
monopoly because rivals don't face a substantial barrier to entering its
market. On the stand for the second day in the Microsoft Corp.'s antitrust
trial, Schmalensee noted myriad threats to Windows ranging from a resurgent
Apple Computer to 3Com Corp.'s popular Palm Pilot hand-held computer. He
did concede that none of these competitive threats yet amount to viable
alternatives for use by major personal-computer makers on new machines.
David Boies, the Justice Department lawyer, repeatedly confronted the
witness with his own writings, suggesting they were contradictory. To a
published report in which he had written that "persistent excess profits
provide a good indication of long-run power," he told the court, "It does
not provide a good indication of my present views." Separately in Seattle,
Microsoft was harshly criticized by a federal judge as "outrageously
arrogant" for trying to deny possible court-ordered compensation or benefits
for its many temporary workers, who sued the software maker in 1992. The
judge gave Microsoft until Jan. 26 to, as he put it, "do the right thing."
[SOURCE: Wall Street Journal (B6), AUTHOR: John R. Wilke & Keith Perine]
http://wsj.com/
See also:
MICROSOFT WITNESS HIT WITH HIS OWN WORDS
[SOURCE: Washington Post (E3), AUTHOR: Rajiv Chandrasekaran & Mark Leibovich]
http://www.washingtonpost.com/wp-srv/WPlate/1999-01/15/072l-011599-idx.html

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
...we got you, babe.