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Editorials
Wednesday, June 28, 2000

Telecommunications
mergers need scrutiny

Bullet The issue: Proposed mergers in telecommunications have drawn opposition from regulators in Europe and the United States.

Bullet Our view: Consumers may need new rules to protect their interests in the new telecommunications age.

ROBUST competition has accompanied rapid growth of the telecommunications industry, to the benefit of consumers. Much of the competition can be credited to the Justice Department's breaking up of AT&T's monopoly of telecommunications 25 years ago.

Now the department has begun taking steps to stop creation of conglomerates that could nullify those gains. Those actions may be beneficial to consumers as long as they don't prevent mergers that are necessary for the health of the industry.

Today's inexpensive telephone rates can be credited to the competitive situation created by the forced breakup of AT&T into a long-distance company and eight regional "Baby Bell" phone companies. The breakup has led to the success of companies such as WorldCom Inc. and Sprint Corp., AT&T's top competitors, which now want to merge.

The proposed merger has drawn opposition from both the Justice Department and European regulators. Mario Monti, the European Union's antitrust chief, says he will recommend that the European Commission reject the deal as it was submitted. European approval is essential because of WorldCom's substantial assets on the continent.

Meanwhile, the U.S. Justice Department has filed a lawsuit challenging the merger. Antitrust chief Joel Klein says he is concerned that the new company could dominate long-distance service and Internet access. WorldCom and Sprint withdrew their proposed merger from review by European regulators hours after the Justice Department filed its suit.

The controversy closely follows mergers of America Online Inc. with Time Warner Inc. and AT&T with MediaOne Group Inc. The AOL-Time Warner merger is under review by federal regulators, who have given conditional approval to AT&T's acquisition of MediaOne.

However, Consumers Union alleges that cross-ownership links between Time Warner and the AT&T-MediaOne conglomerate are a violation of conditions set by the Federal Trade Commission when Time Warner acquired Turner Broadcasting System Inc. in 1997.

The Justice Department's aggressive stance on the issue of competition includes its lawsuit leading to a federal judge's order this month to break up computer software giant Microsoft Corp. Chairman Bill Gates has said he will pursue an appeal of the ruling rather than agree to a settlement.

The Justice Department and Federal Trade Commission are properly examining these business decisions to assure compliance with long-standing regulations aimed at promoting competition. In addition, Congress may want to determine whether new rules are needed in the emerging era of telecommunications.


Robert Wenkam,
environmentalist

ROBERT Wenkam, who died Thursday at age 80, was an early leader of the environmental movement in Hawaii in addition to being a gifted photographer, civil engineer and architect.

He founded the Conservation Committee of the Hawaiian Trail and Mountain Club and was the first chairman of the Hawaii chapter of the Sierra Club.

Info BoxHe was one of the original members of the state Land Use Commission, working to preserve open space from development.

Born in Oakland, Calif., Wenkam came to Hawaii in 1941 as a civil engineer with the Army Corps of Engineers. His photos of the Dec. 7, 1941, attack on Pearl Harbor were published in the Saturday Evening Post.

While with the Corps of Engineers, he designed military sewage treatment plants and underground military installations on Oahu.

After the war he established an advertising firm, specializing in architectural photography. At one time he was responsible for all national advertising for the Hawaii Visitors Bureau.

He moved to New York in 1947 to work with an engineering firm but returned to Hawaii after two years. Joining the city-county Parks Department in 1949 as an architectural designer, he designed animal shelters at the Honolulu Zoo and the water fountain on Kalakaua Avenue at Kapiolani Park.

He photographed, wrote and published at least a dozen books on Hawaii and other areas.

In 1980 he told the Maui Rotary Club that he would not publish any more books on Hawaii because they encouraged tourists to come here. He felt that Hawaii was attracting too many visitors for its own good.

Nevertheless he kept working until his death, recently finishing a book about the founders of Hawaii tourism.

Robert Wenkam campaigned for the preservation of Hawaii's natural wonders at a time when awareness of the need for such efforts was meager. His photography and writing encouraged an appreciation of those wonders and an understanding of the need to protect them.

OBITUARIES






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