On-ramp to information superhighway proves bumpy: technology summit spurs more questions than answers.

Jockeying for position on the nation's still unpaved electronic superhighway, the leaders of the communications industry are split over how the new information age will unfold.

Most who attended the "Superhighway Summit" last week (Jan. 11) at UCLA agreed that consumers will have access to movies on demand and 500 channels of cable television. But there was no clear consensus on which technology would dominate -- cable television, computers or satellites -- or if consumers would embrace all or part of the new services.

The anticipated highlight of the event was Vice President Albert Gore's speech. However, Gore didn't provide a detailed blueprint on the government's oversight role in the convergence of the telephone, cable television and entertainment software businesses on that superhighway.

Gore coined the catchword "superhighway" referring to the advanced telephone and fiber optic networks that will be entering the nation's homes over the next 10 years.

A new set of telecommunications regulations called Title 7 will be enforced by the Federal Communications Commission and will sort out the relationships and competitive problems between phone and cable television companies that are expected to invade each other's territories over the next decade.

Those Title 7 regulations have not been hammered out, but Michael Schulhof, chief executive of Sony Corp. of America, said that if they weren't issued by the end of this year it would slow down the development of the superhighway.

Gore's speech was generally warmly received by the CEOs gathered, although they said they are hungry for more details.

The summit was announced as a sell-out but there were about 150 no-shows at Royce Hall. Over 2,000 did attend. The only major player not represented on the day-long panels was Microsoft Corp. founder Bill Gates.

Although the summit took a national slant, there were implications for Los Angeles' economy. U.S. Sen. Barbara Boxer, D-Calif., predicted the "information buildup" would be led by California and be the catalyst to the state's economic revival. New hardware needs to be created to implement the new information services, and she forecast that local entrepreneurs would be profiting from the estimated $3.5 trillion in new products that will be coming out of the communications industry over the next 10 years.

Panelists ranging from Barry Diller, chairman of QVC Network Inc., to Jeffrey Katzenberg, chairman of Walt Disney Studios, predicted the new technologies would have major adverse effects on the corner video store because of the advent of video on demand, which will allow viewers to pick from a full library of films in a pay-per-view digitally activated system. The increasing sophistication of home shopping networks could have a negative impact on traditional retailers, executives said.

The summit's highlights were marked by testy exchanges between the companies that own the means of distribution (cable wire, telephone) and the Hollywood studio software adherents who focus on producing entertainment.

The hybrid conglomerates who are straddling both lanes of the superhighway with investments in both the software and hardware ends are clashing with companies committed to just producing software. They fear they will be squeezed out of the distribution pipeline if one of their competitors on the software side also owns the distribution channels.

Michael Eisner, CEO of Walt Disney Co., and Rupert Murdoch, chairman of Fox, Inc., ganged up on Gerald Levin, chairman and CEO of Time Warner Inc. which is in both the cable television business and the movie, music and amusement park businesses.

Murdoch complained that his attempt to compete with Ted Turner's CNN television news network was being impeded because "this gentleman (Levin) and Mr. Malone won't give me the time of day." John Malone, CEO of Denver based Tele-Communications Inc., the nation's largest cable operator, and Time Warner are major investors in Turner's network. Murdoch contended that because of that involvement he is having trouble gaining access to outlets for his broadcasts. Murdoch said it will take him 10 years before he can get his all-news network up and running. Levin angrily dismissed Murdoch's assertion to reporters after the panel discussion.

Eisner and Katzenberg poo-pooed the hardware/software synergy that Time Warner and Sony have employed by owning cable systems in Warner's case and entertainment hardware (television sets) and said they will keep Disney committed to turning out movies, television and theme park attractions.

Eisner said the quality of the filmed entertainment that is churned out by Hollywood is what sets the industry apart and, if the industry is controlled by one small group "who owns the pipes," it could lower that quality and allow other countries to end America's dominance on the world movie and television scene.

However, Eisner did drop a mini-bombshell when he said, "We may align ourselves (with a hardware company). We don't want to be shut out." He didn't elaborate and wasn't available in the press room after appearing on a panel.

Katzenberg said the new technology will expand the movie business and is not a threat to theatrical distribution. It will enable films to reach a wider consumer base rather than replace a distribution system, he said.

"We are in an evolutionary process, not a revolutionary one," Katzenberg said. "I found all the prognosticators and magicians looking at the crystal ball, telling us what the future is, don't know. But the future is full of opportunity and promise, and it's a good 'we don't know,' not a bad 'we don't know.'" Many entertainment executives who attended the event were looking to see where their companies would fit in on the superhighway.

Russell Goldsmith, CEO of the soon-to-be combined Spelling Entertainment Inc. and Republic Pictures Corp., said: "On one hand, there is a need for the globe-girdling, highly integrated, largely capitalized companies who are reaching out to maximize these opportunities. There is a premium on gargantuan, but there are also interesting opportunities for individuals on the other hand. It's great to pull all these people together here today, but this is the most antiquated way of delivering the information."

Richard Lippin, principal of The Lippin Group, a Los Angeles-based public relations firm that specializes in television and high-tech entertainment, observed, "I think the superhighway concept is one whose time has come, as long as the public doesn't get stopped at the first toll booth. What are the costs associated with this to the public and what will be the difficulty to use the technology associated with the superhighway? This will not be a smooth ride. There will be many regulatory, legal and logistical factors that will come into play."