Communications-related Headlines is a free daily online news
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to date on important industry developments, policy issues, and
other pertinent communications-related news events. This service
is available online at (www.benton.org/News/).
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COMMUNICATIONS-RELATED HEADLINES for JULY 21, 1999
BROADBAND
FCC's Kennard to Argue Against Rules on Broadband Web Access
at the Local Level (WSJ)
Speech: The Unregulation of the Internet: Laying a
Competitive Course for the Future (FCC)
INTERNET
Bill on Internet Liquor Sales Becomes Larger Cause (CyberTimes)
The Two Faces of Online Anonymity (CyberTimes)
Web Ensnaring Real Estate Business (ChiTrib)
Frontier, Lucent Link for Internet Phone System (USA)
MERGERS/TELEPHONY
FCC to Make a Call on Phone Deal (USA)
Flat-Rated Long-Distance Fees (FCC)
PUBLIC BROADCASTING
PBS Stations Acknowledge They Mixed With Politics (NYT)
Radical Radio Station Riled Up Over Power Struggle (USA)
BROADBAND
FCC'S KENNARD TO ARGUE AGAINST RULES ON BROADBAND WEB ACCESS AT THE LOCAL
LEVEL
Issue: Cable/Internet
As the open access debate heats up across the country, Federal
Communications Commission Chairman William Kennard has decided to intervene
in local regulators' attempts to require cable television companies to open
their high speed wires to rival Internet service providers (ISPs).
Portland,
OR and Broward Country in Florida have recently decided that the cable
systems in
their areas must open their lines for other ISP's to use. Chairman Kennard
is planning
on filing a brief in the Portland appeals court case because he wants to
ensure a no-regulation policy for the Internet, rather that let local
governments impose rules. The National Association of Counties, which
represents two-thirds of the nation's counties, recently approved a
resolution saying that local governments can require their cable companies
to provide open access. The
resolution also says that if the FCC or Congress works toward a national
policy they must "continue to give local governments the opportunity to opt
to require open access," said Bob Fogel, the group's associate legislative
director for transportation and telecommunications. Cable regulations say
that local and federal regulators share jurisdiction -- so the law at
present is not clear. [SOURCE: Wall Street Journal, A4, AUTHOR: Kathy Chen]
(http://wsj.com/)
See Also:
U.S. LOCALITIES BACK OPEN CABLE INTERNET
[SOURCE: San Jose Mercury News, AUTHOR:]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/664672l.ht
m)
SPEECH: THE UNREGULATION OF THE INTERNET: LAYING A COMPETITIVE COURSE FOR
THE FUTURE
Issue: Broadband/Internet Regulation
Chairman Kennard's Remarks before the Federal Communications Bar, Northern
California Chapter, San Francisco: Chairman Kennard calls for a high-tech
Hippocratic Oath: "with competition and deregulation as our touchstones,
the
FCC has taken a hands-off, deregulatory approach to the
broadband market....So we decided to let the market forces churn while we
carefully monitor the situation, and the marketplace has responded with
enormous investment in broadband - and not just in cable." Chairman Kennard
points out that wherever cable Internet access has been rolled out, DSL
service soon follows. But some municipalities are not following the
national
broadband policy of the FCC and are trying their own solutions: "Disturbed
by the effect that the actions of local franchising authorities could have
on this policy and on the deployment of broadband, I have asked our general
counsel to prepare a brief to be filed in the pending Ninth Circuit case so
we can explain to the court why it's important that we have a national
policy....We need to follow this course - to allow this competition to
flourish - for if we do, we will have the infrastructure needed to keep our
economy growing. We will be able to construct a future where there are
limitless opportunities. "
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/spwek924.html)
INTERNET
BILL ON INTERNET LIQUOR SALES BECOMES LARGER CAUSE
Issue: Internet Regulation/E-Commerce
Two bills have been approved by the House and Senate Judiciary Committees
which
could have potential long-term effects on states rights, Internet taxation
and
electronic commerce. The proposals "[raise] questions that the legislation
would chip away not only at a recent moratorium on new Internet taxes but
also
the freedom of companies to engage in electronic commerce." On Tuesday the
House
Judiciary Committee approved a bill sponsored by Rep. Joe Scarborough
(R-FL)
that would allow states to prosecute out-of-state companies that violate
their
liquor sales laws by selling alcohol to minors over the Internet or to
people
who live in so-called dry areas. The proposal could also give states more
power
in trying to collect taxes on liquor shipped to their jurisdiction. Last
month,
the Senate passed a similar proposal sponsored by Senator Orrin Hatch
(R-UT),
head of the Senate Judiciary Committee. Small breweries were dismayed with
the
results saying the new legislation keeps them from breaking into the
national
market.
[SOURCE: New York Times (CyberTimes), AUTHOR: Jeri Clausing
(http://www.nytimes.com/library/tech/99/07/cyber/articles/21liquor.html)
THE TWO FACES OF ONLINE ANONYMITY
Issue: Internet/Security
Through its publication, Information Society, various focus groups and a
previously held conference, the American Association for the Advancement of
Science is exploring the complexities of anonymous communication online.
There
is fear among the project undertakers that politicians are regulating
online
speech without fully understanding the Internet and the issues involved,
according to Rob Kling, the journal's editor-in-chief. The pro and con
issues
of anonymity are discussed as well as the subtleties and side-effects that
could result from laws that seek to curtail anonymity. The project is
sponsored
by the National Science Foundation.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/07/cyber/articles/21anonymity.html)
WEB ENSNARING REAL ESTATE BUSINESS
Issue: Ecommerce
Yeah, the commercial real estate industry has just heard of this crazy new
thing...it's called the Internet. Professionals in the business are both
entranced and fearful as the Internet speeds up deals, transforming the
nature of the market -- making it more transparent, more liquid and less
risky. Commercial real estate "is driven by technology," declared Brett
White, chairman of North America for Los Angeles-based CB Richard Ellis, a
leading real estate services firms. "You don't have the option. You must
embrace it," White told a group of more than 100 real estate industry
professionals from around the country at a recent seminar on commercial
real
estate and technology.
[SOURCE: Chicago Tribune (Sec3, p.1), AUTHOR: J Linn Allen]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-9907210
1
02,FF.html)
FRONTIER, LUCENT LINK FOR INTERNET PHONE SYSTEM
Issue: InfoTech
The Internet is creating major opportunities for equipment makers such as
Lucent Technologies and carriers such as Ameritech and SBC. They can get
into
deals similar to Frontier Communications and Lucent to build an
Internet-based
network to carry all of Frontier's voice traffic by 2002. This will leave
the
older phone networks that are worth $500 billion used by the regional Bells
to
be leased to other entities. Frontier plans to lease their old lines.
Lucent
will be providing the equipment and software for Frontier to move to the
Internet. Francis McInerney of North River Ventures said, "I think you will
see
over the next 24 months a series of deals that will completely break up the
phone system."
[SOURCE: USA Today (1B), AUTHOR: Steve Rosenbush]
(http://usatoday.com/)
MERGERS/TELEPHONY
FCC TO MAKE A CALL ON PHONE DEAL
Issue: Merger
Yesterday, long distance companies called on the Federal Communications
Commission to address the SBC/Ameritech conditions as they believe the
conditions are "useless" and riddled with loopholes. Some of the loopholes
mentioned by AT&T, MCI Worldcom and several small local phone companies
were:
1) SBC/Ameritech promises to offer local rivals discounts to connect to
their
lines - but that discount would only apply to 8% of home lines and no
business
lines; 2) the conditions expire in three years; 3) SBC/Ameritech would not
have to upgrade their computers vital for customer information for two
years;
and 4) SBC/Ameritech will make it difficult for competitors to sell
high-speed
Internet services because they do not have to identify the lines that can
handle high-speed features and they can charge high fees to prepare them.
With
respect to the discounts offered to local competitors, SBC spokesman Selim
Bingol said, "These are steep discounts, and you can't have everything."
Noting
that the merged phone behemoth would serve 40% of the U.S. population,
AT&T's
Jim Sicconi said "two giant monopolies " that have stifled competition are
"being allowed to combine to an even larger monopoly." MCI's Jonathan
Sallet
said, "The problem with conditions met after the merger closes is that the
new
company has no incentive to comply." He pointed out that similar conditions
were put on the Bell Atlantic and Nynex merger, but they still have not
been
met. Analysts say that the $2.2 billion in fees that SBC/Ameritech would
have
to pay for non-compliance with these conditions is a small chunk of change
compared to the billions the company will make. [In the proposed
conditions,
SBC/Ameritech makes it clear they can dispute and withhold payment for any
non-compliance fees imposed on them by regulators.]
[SOURCE: USA Today (3B), AUTHOR: David Lieberman]
(http://usatoday.com/)
See Also:
[SOURCE: Wall Street Journal, B5, AUTHOR: Associated Press]
(http://wsj.com/)
MERGER FOES GIVE FCC MORE STATIC
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-9907210
1
18,FF.html)
FLAT-RATED LONG-DISTANCE FEES
Issue: Long Distance
The Commission released an item, adopted by a 4-1 vote on July 8, 1999,
that
inquires into the effect of certain flat charges on consumers who make few,
or no, interstate long-distance calls. The inquiry addresses a variety of
flat-rated charges that appear on consumers' bills, such as charges to
recover the presubscribed interexchange carrier charges (PICCs) that the
long-distance carriers pay some local phone companies, long distance
carriers' monthly minimum-usage charges, and charges to recover Universal
Service Fund (USF) contributions. The Commission invites comment on, among
other things: 1) whether such charges have resulted from a competitive
market dynamic; 2) whether the Commission should rely on competition, such
as the availability of dial-around services or the entry of Bell Operating
Companies (BOCs) into long-distance service, to address the needs of
low-volume customers; and 3) whether the Commission, states, and consumer
groups should educate consumers regarding choices they can exercise in the
marketplace, and whether such education might reduce the need for
regulation. The Commission invites comments from all interested parties on
the above issues so that it may explore all viable options to ameliorate
the
impact of flat, monthly fees on low-volume users in ways that are least
intrusive for the industry. Common Carrier Bureau contact: Neil Fried (202)
418-1530; TTY: (202) 418-2555.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9050.html
)
(http://www.fcc.gov/Bureaus/Common_Carrier/Notices/1999/fcc99168.pdf)
PUBLIC BROADCASTING
PBS STATIONS ACKNOWLEDGE THEY MIXED WITH POLITICS
Issue: Public Broadcasting
At least 28 stations have exchanged donor lists with one or both of the
major political parties in a practice that may go as far back as 1981,
according to a partial survey by the Corporation for Public Broadcasting.
The Government provides ~15% of public television's $2 billion annual
budget
and that support may be in danger. Public TV leaders are agreeing to
cooperate with a independent review of the fund-raising practices of the
nation's 353 public television stations. Some Republicans are asking for
the
systems's head: "Big Bird is nearly 30 years old, and it's time to leave
the
federal nest," said Rep. Steve Largent (R-OK). Rep. Barbara Cubin (R-WY)
said that public broadcasting's tax-exempt status "should be revoked, and
Congress should phase out public funding." Rep. Billy Tauzin (R-LA),
Chairman of the House Telecommunications Subcommittee, appeared less eager
than some of his colleagues to cut back the funding entirely. But he said
he
would introduce legislation to make it illegal for stations to make their
lists available at all, directly or indirectly through intermediaries, to
any political organization or politician.
[SOURCE: New York Times (A16), AUTHOR: Katharine Seelye]
(http://www.nytimes.com/library/politics/camp/072199pbs-donors.html)
See also:
CORPORATION FOR PUBLIC BROADCASTING AUTHORIZATION ACT OF 1999
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/eeae8466ba03a2158525677f
0
04b4d11/b851d22782eade84852567af005aaada?OpenDocument)
RADICAL RADIO STATION RILED UP OVER POWER STRUGGLE
Issue: Radio
Protesters chanting "free speech" were lying on the ground and being
removed
by police at Berkley's radio station, KPFA. The leftist station, which was
founded 50 years ago, has had its share of trouble lately. The Pacifica
Foundation, KPFA's owner, has been trying to change direction and get more
listeners. They fired Nicole Sawaya, the station's popular general manager.
>From there, employees announced their grievances over the air, which broke
a
station rule. This caused Pacifica to fire some on-air employees. Three
shots were fired into the station one night. Unlike other radio stations,
KPFA has survived almost entirely on donated money by listeners. The
station
gave individuals the right to speak during McCarthyism and did interviews
with farm-labor activist Cesar Chavez. Early this week, the two sides
agreed
to a federal mediator in hopes to end the street protests, arrests,
lawsuits
and death threats.
[SOURCE: USA Today (7A), AUTHOR: Carol Morello]
(http://usatoday.com/)
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The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
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not represent the tone of the original articles. Headlines are compiled by
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