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Mr. HUGHES. Mr. Warren, welcome.

STATEMENT OF PAUL WARREN, CHAIRMAN, INTELLECTUAL PROPERTY COMMITTEE, NEWSLETTER PUBLISHERS ASSOCIATION

Mr. WARREN. Thank you. I wish to thank the chairman and the members of the subcommittee for inviting me to testify here today regarding the Copyright Reform Act of 1993.

I represent the Newsletter Publishers Association. It is a trade association representing publishers of approximately 2,200 newsletters and other specialized information services. As a former reporter and currently a publisher myself, I am more accustomed to sitting at the press table. However, I am pleased to be sitting at the witness table in order to present you with the views of my colleagues, the hundreds of small and large publishers across the Nation who produce the thousands of newsletters on which business, industry, medicine, science, and the arts depend daily for the information necessary to their respective pursuits.

I'm senior editor and executive publisher of Warren Publishing. Our company was formed in 1945. We publish 13 newsletters in the telecommunications field, such as Communications Daily, Satellite Week, Audio Week, and Television Digest.

I have copies here of Communications Daily, and I would like to give some to the chairman and the rest of the committee. In fact, it carries an article about yesterday's somewhat unusual hearing. [The newsletter follows:]

Communications Daily

The Authoritative News Service of Electronic Communications

SERVICE OF WARREN PUBLISHING, Mc. 2118 WARD COURT, III., WASHINGTON, D.C. 20837.

THURSDAY, MARCH 4, 1993
Today:

WARREN PUBLISH

48

YEARS OF EXCELLENCE

Phone: 283-572-8289

VOL. 13, NO. 42

AT&T PLANNING HIGHER RATES FOR 'FRESH LOOK' CUSTOMERS: Proposed tariff could boost some elements 70% for those leaving AT&T Tariff 12 arrangements. (P. 1)

COMPETITIVE CABLE SYSTEMS OFFER MORE CHANNELS, lower monthly rates than noncompetitive systems, our analysis of FCC data shows, with per-channel cost 43.1% lower for competitive systems." (P. 2) USSB SIGNS NEW PROGRAMMERS, although Viacom and Time Warner deals may create problems for Hughes. Three companies will use same DBS bird, may compete for same programmers and markets. (P. 3) AT&T IN PRELIMINARY AGREEMENT WITH SOME CARRIERS ON CIID CARDS: Accord on model contract would give carriers way to recover costs of handling traffic. Two snags listed. (P. 4)

BOMB BLAST TESTS METTLE OF N.Y.C. MUTUAL AID PACT: Year-old plan to keep critical telecommunications networks on-line in crisis operates without hitch first time it's activated. (P. 5)

TELECOMMUNICATIONS INDUSTRY CAN LOOK TO CLINTON FOR PROSPERITY, leaders say at CompTel '93 convention, although tax proposals stir concern. Upturn in economy cited. (P. 6)

OPPOSITION STRIDENT ON PTAR WAIVER FOR 911: Disney and MPAA attack request by MTM. urge FCC to respect 'due process' and deny bid. Disney again asks for rulemaking to repeal PTAR. (P. 7)

COPYRIGHT TRIBUNAL CHMN. CHARGES COLLEAGUES WITH CORRUPTION: House panel hearing on bill to abolish agency is surprised by allegations. Other 2 commissioners, who want to end agency, deny charges. (P. 7)

$25.000 Monthly Fes

CUSTOMERS LEAVING AT&T TARIFF 12 COULD FACE 70% RATE INCREASES

AT&T has told major customers that it will propose shortly new rates for Tariff 12 customers that take advantage of its "fresh look" window to jump to another carrier. But according to tariff analysts who have seen drafts of proposal, those rates could cost customers millions of dollars for leaving AT&T. Analysis by Deloitte & Touche said rates would be 70% or more than what customers are paying under existing Tariff 12 deals, and higher than if they signed up with another AT&T service. Those rates would apply on month-to-month basis for customers in process of ending their AT&T network arrangements and going to another carrier. Under FCC decision, customers have 90 days, beginning May 1, to decide whether to stay with their AT&T deals or to make other arrangements.

AT&T is presenting package to customers as one in which rates have been calculated "at a level which is roughly equal to the rates AT&T would charge where no term agreement is in place." Users will have their services, which have been bundled together in custom deal, broken out into separate elements. For example, AT&T said in letter to customers that 800 features "currently provided at no charge" would be subject to charges under new month-tomonth arrangements. For some companies, cost could be $50,000 or more per month. AT&T also will take away network management features that came with Tariff 12. In its place will be "standard set of transitional support services and reports" for which customer will have to pay $25,000 per month.

Tariff analysis for large and small customers showed that companies that want to opt out of Tariff 12 could pay 50% more for same voice services as under Tariff 12 and as much as 75% for data. Analysis by Deloitte & Touche was for customers that now spend $8-$22 million annually with AT&T. Steven Martin, Deloitte principal, said rates

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