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Kansas Police Have Possible Lead on Serial Killer; Gunmen Take Over Bus in Greece; Sprint, Nextel Merge Cell Phone Business

Aired December 15, 2004 - 11:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


RICK SANCHEZ, CO-HOST: Brigades based in Alaska, Florida, Georgia, Kansas, and New York, will all be in the upcoming deployment, which will last through mid-2006.
President Bush meets with one of his strongest international supporters this hour. Italy's prime minister, Silvio Berlusconi, is going to have lunch with the president. According to the White House, the two leaders are going to discuss ways to improve relations between the United States and Europe.

At least 10 hostages have been freed from a passenger bus on the outskirts of Athens. Gunmen attacked the bus this morning in the suburb of Marathon, en route to Athens. The bus is stationary, and the gunmen have demanded safe passage to the airport, also a flight to Russia.

We'll continue to bring you updates on that story as they come in.

Also a prominent Sunni politician says that he's going to take part in Iraq's national elections next month. Adnan Pachachi recently urged a delay in the vote. His enrollment may spur other Sunni political and religious leaders to give up on a planned election boycott.

Here we go with this hour: 11 a.m. on the East Coast, 8 a.m. out west. And from the CNN Center in Atlanta, I'm Rick Sanchez.

DARYN KAGAN, CO-HOST: And I'm Daryn Kagan. Good morning once again.

SANCHEZ: First up this hour, a trash bag in Wichita, Kansas, that may hold a message from the suspected serial killer known as BTK. Now, this case goes back to the mid-1970s and until this year had been dormant for decades.

Now, someone claiming to be BTK has been letting authorities know he's still around and may kill again.

Cara Kumari of affiliate KAKE has the very latest on this.

(BEGIN VIDEOTAPE)

CARA KUMARI, KAKE REPORTER (voice-over): A man walking through Murdoch Park overnight discovers a mysterious trash bag and decides to take a closer look. UNIDENTIFIED MALE: I didn't know what it was. It was wrapped in rubber bands. So I just held onto it and I went into the house, and I set it there on the table and looked it at for awhile. Then I took the scissors and clipped around the trash bag.

KUMARI: Police have asked us not to reveal this man's identity. But he says when he saw the contents inside related to BTK, he called KAKE.

UNIDENTIFIED MALE: And when we examined it a little more, we seen a driver's license and stuff inside of it and decided to call somebody.

KUMARI: KAKE called police, who confirmed they're treating the package as a possible BTK communication.

Police Chief Norman Williams and Lieutenants Ken Landware (ph) met with KAKE to discuss their concerns about showing too much of the contents of the package.

Here's what we can tell you about what's inside. The package contained an object and we've been asked not to release what that object is. Also, a chapter list of the BTK story. Many of the chapters are the same from the chapter list sent to KAKE in May.

Up to this point we've only disclosed three chapters from that letter. But this letter is a little different: chapters one, two and eight are blank. Chapter eight was called MOID Ruse (ph) in the May letter.

Also in that letter, chapter 13 was titled "Will There More?" This letter contains chapter 13, "Will There Be More?"

UNIDENTIFIED MALE: You will find a homicide at 43 South Purginton (ph).

KUMARI: When Nancy Fox was murdered, her driver's license was taken from the scene. This package contains her driver's license. Her father tells KAKE it looks authentic.

The package has now been sent to the FBI to confirm whether it is really from the serial killer. The man who found it hopes it is.

UNIDENTIFIED MALE: BTK is getting real serious. And you know, I'll do my best to try to help out.

(END VIDEOTAPE)

KAGAN: That report coming to us from KAKE Television. This particular television station has had a front row seat to much of the BTK drama as it has unfolded recently.

Larry Hatteberg is a veteran newsman at the station, and he's joining me now to bring us up to date on this very bizarre case that has frightened much of Wichita.

Larry, good morning. Thanks for being here with us.

LARRY HATTEBERG, KAKE, WICHITA, KANSAS: Nice to talk to you, Daryn.

KAGAN: First, what do you think of this latest package that has shown up?

HATTEBERG: Well, it was certainly a surprise to us when we got a call from a viewer yesterday. And it does appear -- police are acting on the assumption that this particular package is from BTK because of the contents inside that plastic bag.

So they are assuming at this point, and they are checking with the FBI labs in Washington, to make sure this is from BTK. But at this point, they do believe it is.

KAGAN: Go back to May, when your station received another correspondent from what could be the BTK killer.

HATTEBERG: This station has received several correspondents from BTK, going all the way back to the mid'70s. BTK, we know, is a viewer of this particular television station. We know he watches us, because he has corresponded with us.

He came back into the forefront of the news last March and since then, he has written a number of letters. One, to this particular television station. In that particular letter, he enclosed chapters, like he was writing chapters of his life down for a book. He also enclosed an anagram, a word puzzle and then some pieces of identification that he may have used as a ruse to get into some people's homes. That was the letter -- the latest letter that we received here at KAKE Television.

KAGAN: So many strange aspects of this case, including the huge gap in time. You were mentioning nothing had really been heard from this killer since 1986. Any theories out there about why now? And how do they know it is this person, not just taking on the identity of BTK?

HATTEBERG: Well, the Wichita Police Department and the FBI labs have determined that the latest correspondence and all the contacts that we've had with BTK are the real deal. He is the real thing.

But this is the first serial killer that we know of that has gone dormant for over a decade and all of a sudden reappeared. That doesn't fit the normal serial killer mode. And that's what makes this story really so exceptional.

And there are a million theories out there as to why he disappeared and what happened to him. Some people thought he might have been incarcerated. Some people thought he might have died.

The other theory is that none of those is the case, that he was living right here amongst us. He was going to the grocery store with us. He was going to the movies with us and he is one of us. And he is BTK. He is a killer, and he is still at large. KAGAN: And what have these latest developments done to the mood in the Wichita community?

HATTEBERG: Well, the Wichita community -- when BTK came back the second time, I don't think there was an unlocked door in Wichita, Kansas. Young women, particularly, are very concerned about this guy, very concerned they could be his next victim.

People are -- people are very nervous about it; they're scared. I don't want to tell you that the community is terrified. I don't believe that's the case, because we've been living with this case now for about 30 years. So BTK has just become part of the coffee talk here in Wichita.

KAGAN: All right. And as we've said, you've covered the story for a long time. Thank you for these inside scoops and bringing us the latest from Wichita. Larry Hatteberg from KAKE Television, thank you.

And for all the latest legal news available online any time, just go to CNN.com/law.

SANCHEZ: There's a breaking story that we've been following for you here at CNN. It has to do with gunmen taking over a bus in a suburb of Athens Greece.

Throughout the day, they have let go of some of the hostages. That's one of the pictures we see there of a hostage being released. As many as 12 have been released thus far.

Let's get the latest now. Alessio Vinci is on the phone with us from Athens to bring us up to date on the very latest.

Alessio, what do you have?

ALESSIO VINCI, CNN CORRESPONDENT: Hello, Rick.

Well, I just arrived here on the scene. I'm about 100 yards away from the bus that you can now see on your television screen.

We believe -- at least Greek officials believe that negotiations appear to be going quite well with the hostage takers. Within the last half hour or so, hijackers have released two more hostages, bringing to 12 the total number of people released since this morning, when the gunmen seized the bus with at least 24 passengers on board.

Police have now surrendered -- surrounded, sorry, the entire area. Hundreds of anti-terror specialists, as well as several sharp shooters have taken up positions, in order to keep the bus under control.

The hijackers are believed be armed with guns as well as some explosives, which they have threatened to blow up should their demands not be met. They have requested this bus to be driven to the airport, where they would like a board a plane and be flown to Russia. Authorities are having a hard time to establish the identity of the hijackers, but they are working under the assumption that they are Albanian -- Albanian nationals.

And so far, there has been just a brief exchange of fire between the two sides early this morning. But in the last few hours, everything has been quiet.

Back to you, Rick.

SANCHEZ: But the only thing that really is completely unanswered at this point is why they're doing this, right?

VINCI: That is correct. And that is why the authorities are really not giving much information, other than saying that these hijackers have requested to go to Russia. It does seem quite an odd request, to be just flown to Russia, if indeed, these two hijackers are -- are Albanian nationals.

So this is a question that the negotiators and police officials on the scene are trying to answer, trying to see, perhaps, if there are any other motives behind this hijacking.

SANCHEZ: Right. CNN's Alessio Vinci, joining us, as you can see there, on the phone, keeping us up to date on the story that we've been following for you for the better part of a couple hours here at least on CNN. And we will continue to do so.

Daryn, over to you.

KAGAN: If you use a cell phone, you're going to care about this big story. Two big telecoms connecting on a merger this morning, Sprint and Nextel's combination, highlighting a consolidation trend in the cell phone industry.

We're going to focus on the deal this hour. If your monthly bill is your bottom line. We're going to talk about that as well.

First to New York and financial correspondent Allan Chernoff.

Allan, good morning.

ALLAN CHERNOFF, CNN CORRESPONDENT: Good morning to you, Daryn.

Well, we've got merger mania hitting the telecom industry. A few weeks ago, Cingular and AT&T Wireless said they would combine to create the biggest wireless company.

Well, now we have Sprint and Nextel connected in a $35 billion deal. The combination would create the No. 3 wireless provider, after Cingular and Verizon Wireless, with 35 million subscribers.

Now Nextel specializes in mobile phones that have walkie-talkies. The company needed to upgrade its technology to offer more services like Internet browsing. And now, it can simply make use of Sprint's infrastructure. Sprint will now be able to offer a solid walkie-talkie service. It has a similar service but the quality is not nearly as good as Nextel.

Now, for both companies the deal means big savings, $12 billion worth. And here's how they plan to do it: reduce the number of cell sites, cut infrastructure spending and combine billing, customer service and marketing operations. And you can certainly bet that will mean layoffs, the companies confirming there will be a reduction in head count.

The companies also intend to spin-off Sprint's local phone business. And that means Sprint Nextel will be what Wall Street calls a pure plate wireless. And analysts say the new company will tell customers to cut the cord, give up your home phone and go completely wireless -- Daryn.

KAGAN: The next chapter. Allan, thank you.

SANCHEZ: Well, you always ask those questions. Whenever you see two big companies like this coming together and merging, aside from what the investors and all the suits think, what does it mean for us? How does it affect the little guys?

Let's go to CNN personal finance editor, Gerri Willis. She's going to try and give us a perspective on this. And she's joining us from New York.

Gerri, good to see you again.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey, Rick. Good to see you.

Customer advocates this morning are saying that today's deal, and the many ones we've heard about like it, could mean higher prices and diminished services for consumers.

Now, we spoke to Gene Kimmelman of the Consumers Union, and he described his concerns.

(BEGIN VIDEO CLIP)

GENE KIMMELMAN, CONSUMERS UNION: You've got to watch out. For the consumer, you want to make sure there's more than one or two players in the market so that there actually are incentives to keep increasing quality to improve the service for the consumer.

(END VIDEO CLIP)

WILLIS: Now, it's not just Consumers Union that's concerned. The Consumer Federation of America this morning also telling us that they have worries, as well, very similar.

However, interestingly, they say, this is not as negative for customers as the AT&T/Cingular deal, because it's not as big. On the flip side, Rick, Wall Street analysts saying that maybe price increases are not just over the horizon for customers because there are many regional wireless carriers, more and more getting into the business all the time because Sprint is selling access to its network. They say that prices won't go up dramatically because of that -- Rick.

SANCHEZ: All right. Gerri Willis, letting us know what we might be in for from New York. Thanks again, Gerri.

WILLIS: You're welcome.

KAGAN: Very interesting there. You know, also the other cell phone. There we go, as we say in the biz, a two-shot.

I am learning. I'm learning from you.

SANCHEZ: You're really got it figured out, don't you?

KAGAN: Other cell phone news that we'll be talking about. They're talking about, the FCC, letting you use your cell phone on an airplane. Don't know if that's a good idea. But Daniel Sieberg will be along to talk about that.

SANCHEZ: Cell phones are just becoming so universal.

cAlso, if you're planning to drive to Grandma's this Christmas, with or without a cell phone, you may want to take care. Hear why officials expect more fatalities than usual on America's roads and highways.

KAGAN: And President Bush's ambitious second term economic agenda is under fire. We'll ask the president's top economic advisor how the White House plans to pay for that.

KAGAN: And it's the White House through some very different eyes. You don't want to miss this one. You're watching CNN LIVE TODAY.

(COMMERCIAL BREAK)

SANCHEZ: In Washington today, President Bush and Vice President Cheney are hosting a two-day summit to promote their pocketbook initiatives for the second term. Big ticket items like Social Security, tax reform, lawsuit abuse and deficits are going to be on the table.

The president invited business leaders and economists to the talks. But Mr. Bush has already spelled out his position on many of these ideas. And most of the plans, like personal investment accounts for Social Security, carry sticker shock price tags in an era of deficits.

Steve Friedman is one of the president's top economic advisors.

In fact, you're really hosting this thing. You're helping to put it together, right, Mr. Friedman?

STEVE FRIEDMAN, ECONOMIC ADVISOR TO PRESIDENT BUSH: Yes, I am, Rick, thanks.

SANCHEZ: It's always good to have you. It's really a pleasure. You've been getting a lot of ink on this question. So let me go ahead and ask you straight up front.

Who's going to be there to raise the questions that many say need to be raised? In other words, is this going to be just a Kumbaya session between people who already agree with each other? Or will there be some people there who already have different opinions? And if not, why not?

FRIEDMAN: Well, Rick, I think -- I think the administration has reached out -- reached out to people from a diverse range of backgrounds. And I think all the key issues are going to be put on the table.

On the issue that you just touched on, the need to increase national savings, and to reduce the budget deficit. We've already -- in the first panel, which I chaired, we've already heard discussion of that.

And so, I don't think any of the challenges this economy faces will be -- will be off the table.

SANCHEZ: But is there anybody -- here's what was described in most of the big newspapers, like the "Washington Post": "A hand-picked panel of business executives with close ties to the White House."

Is there anyone who's going to be at this conference who doesn't fit that description?

FRIEDMAN: Well, you know, I don't -- I don't think these are people who are -- who are -- who are short of a range of personal views, nor will they be shy about expressing them. So, I don't think any of the key issues will be -- that the economy faces will be off the table.

As I said, in the first panel, we already started hearing them. I think you do want to put this in the context that Marty Feldstein of Harvard did in his closing remarks.

Four years ago, when they had a summit in Waco, the economy was -- was in or moving into a recession, and -- and the president-elect was hearing some alarming things.

This year, we are in a -- in a very strong and positive economy that's moving forward, and it is now time -- we now have the wind at our backs and we can now face some of the longer term challenges that need to be dealt with to keep the economy strong in the decades ahead.

SANCHEZ: Everyone seems to be talking about the trade deficit. Make us understand why this is such a big concern and what our government is going to be doing about it. Because so many people have been saying that if we don't get that thing under wraps, then the dollar is going to be devalued and we're going to have some real serious problems.

Could you put that in perspective for us?

FRIEDMAN: Yes. I won't speak about the dollar, per se. The secretary of the treasury and the president are the only ones of the administration who talk about currencies.

But I will say that it's very, very important for us to increase our national savings. And that's something that the president has been very clear about. He wants to -- he wants to reduce the budget deficit, cut the deficit in half by 2009. That has -- has a direct impact on the trade deficit.

And he's determined to do this by spending discipline here in Washington and by pro growth policies.

Now, it's an issue that is going to -- the U.S. trade deficit has got its counter balance in the surpluses of countries abroad. And this is something that our foreign trading partners are going to have to be partners in dealing with this, also.

And what we really need is -- also, is more aggressive pro growth policies with some of our trading partners. Because when our foreign trading partners are growing more robustly, they are a much better market for American exports. And -- and that's a very important part of the equation.

SANCHEZ: It's good to hear that that's a top priority.

We certainly thank you, Mr. Friedman, as usual. You've got a big job on your hands today. We wish you well and we thank you for being here and sharing your insight with us.

FRIEDMAN: Thank you, Rick.

SANCHEZ: Appreciate it.

Well, you know, there's more on the economic summit next hour with Wolf Blitzer. Treasury Secretary John Snow is going to join Wolf live. That's at noon Eastern, of course, to discuss the president's proposals.

KAGAN: President Bush kind of a busy guy today: not only the economic summit, also meeting with the Italian prime minister this morning. And we're expecting some comments from there shortly. We'll bring that to you when it comes in.

SANCHEZ: Also, homeland security officials are weighing in on whether to change the current color-coded terror threat system. Boy, there's a mouthful.

KAGAN: Yes. You did it well, though.

Plus a famous dog wishing you a happy holiday. We're going to visit with Barney, coming up.

(COMMERCIAL BREAK)

SANCHEZ: Well, rev up your engines, folks. The holiday rush is on. AAA is saying the traffic is going to be up about three percent this year with 51 million people on the roads. That's because Christmas and New Year's fall on a Saturday.

Busier roads increase the likelihood of accidents, as well, as you know. So federal officials are urging everyone, and so are we, just be patient. Take care, you'll get there.

KAGAN: All right. Different form of transportation we're talking about now: airplanes, cell phones. Can't use them now, but the FCC is meeting this morning to consider a plan that would allow you to use your cell phone during a plane flight.

Our technology correspondent Daniel Sieberg is here.

Of course, if you can use your cell phone, so can the obnoxious guy next to you while you're trying to sleep.

DANIEL SIEBERG, CNN CORRESPONDENT: Exactly, while you're trying to sleep. And maybe go to the one place where there aren't cell phones these days. They do seem to be everywhere, aren't they?

Well, the issue is certainly going to push people's buttons. There are those who relish the chance to escape the ubiquitous cell phone, while a few others do see it as a great opportunity.

The FCC is meeting today to discuss how cell phones at 35,000 feet might interfere with cell use on the ground and considering licenses for the technology.

Now, the FAA, meanwhile, is concerned about how cell phones will affect electronics on board an airplane. They've commissioned a private study to be completed by 2006 and says it won't decide anything until after that time.

The question is, could an active cell phone cause a crash or cause some sort of problem on board an airplane? Well, you can just think about the people who have packed their cell phone in a carry on luggage back and left it on without incident. Maybe some of us have done that, as well.

Some say that there is a chance, however remote, that something could go wrong. You'd have to have a really specific set of circumstances.

You might remember that some cell phone calls were made to loved ones from the hijacked planes on September 11. But experts are saying that probably had more to do with the plane's close proximity to the ground.

So the issue really seems to be over whether travelers would embrace it. Now I think we can go to something here. There's a rather unscientific poll on CNN Money's web site. It shows a majority of people are against the idea. I don't know if we have that.

There we have it. I think it says it was about 54 percent saying no. The last time I had a look at it, saying they would not agree to having cell phones on board an airplane.

And we talked to some people earlier. They would rather have the data available, not necessarily talking. And this is likely because, as we said, they would be in such close proximity with talkers and probably loud talkers to talk over the din of an airplane and nowhere to go.

There is certainly plenty of issues to work out: which carriers or carrier will provide the service? How much will the calls cost? Could there be roaming charges involved? And will the calls be limited in some way? And how could that be possibly monitored by these poor overworked flight attendants? And could this become the newest air rage or a huge advantage, depending on how you look at it?

KAGAN: Actually, my partner, Rick Sanchez, had a good idea. You create, like, a phone zone in the plane, like the old smoking zone.

SIEBERG: Right. Like they need phone booths or something like that.

KAGAN: You've got to go to the back of the plane and be with all those other talkers.

SIEBERG: Right.

KAGAN: You're not sitting next to me talking on your cell phone.

SIEBERG: That's going to be the new plane etiquette.

KAGAN: That's it.

SIEBERG: Go to the back of the plane.

KAGAN: Thank you.

SIEBERG: All right.

KAGAN: Daniel Sieberg, appreciate that.

Well, our financial news any time, CNNMoney.com. Track your stocks and sign up for breaking news e-mail alerts, 24/7, by the way.

SANCHEZ: It is a dog day afternoon at the White House. And we mean that in the best possible way. Stick around to see this holiday spoof from the president's staff.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I've already given you an important job.

(END VIDEO CLIP) SANCHEZ: Listen to this. This gets good, folks. It's the first pooch, Barney, putting the president in his place. Or wait, or is it the other way around? Stick around and find out.

(BEGIN VIDEO CLIP)

BUSH: Now, I don't want you chasing Willie around the house anymore. You understand that? I'm counting on you.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired December 15, 2004 - 11:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, CO-HOST: Brigades based in Alaska, Florida, Georgia, Kansas, and New York, will all be in the upcoming deployment, which will last through mid-2006.
President Bush meets with one of his strongest international supporters this hour. Italy's prime minister, Silvio Berlusconi, is going to have lunch with the president. According to the White House, the two leaders are going to discuss ways to improve relations between the United States and Europe.

At least 10 hostages have been freed from a passenger bus on the outskirts of Athens. Gunmen attacked the bus this morning in the suburb of Marathon, en route to Athens. The bus is stationary, and the gunmen have demanded safe passage to the airport, also a flight to Russia.

We'll continue to bring you updates on that story as they come in.

Also a prominent Sunni politician says that he's going to take part in Iraq's national elections next month. Adnan Pachachi recently urged a delay in the vote. His enrollment may spur other Sunni political and religious leaders to give up on a planned election boycott.

Here we go with this hour: 11 a.m. on the East Coast, 8 a.m. out west. And from the CNN Center in Atlanta, I'm Rick Sanchez.

DARYN KAGAN, CO-HOST: And I'm Daryn Kagan. Good morning once again.

SANCHEZ: First up this hour, a trash bag in Wichita, Kansas, that may hold a message from the suspected serial killer known as BTK. Now, this case goes back to the mid-1970s and until this year had been dormant for decades.

Now, someone claiming to be BTK has been letting authorities know he's still around and may kill again.

Cara Kumari of affiliate KAKE has the very latest on this.

(BEGIN VIDEOTAPE)

CARA KUMARI, KAKE REPORTER (voice-over): A man walking through Murdoch Park overnight discovers a mysterious trash bag and decides to take a closer look. UNIDENTIFIED MALE: I didn't know what it was. It was wrapped in rubber bands. So I just held onto it and I went into the house, and I set it there on the table and looked it at for awhile. Then I took the scissors and clipped around the trash bag.

KUMARI: Police have asked us not to reveal this man's identity. But he says when he saw the contents inside related to BTK, he called KAKE.

UNIDENTIFIED MALE: And when we examined it a little more, we seen a driver's license and stuff inside of it and decided to call somebody.

KUMARI: KAKE called police, who confirmed they're treating the package as a possible BTK communication.

Police Chief Norman Williams and Lieutenants Ken Landware (ph) met with KAKE to discuss their concerns about showing too much of the contents of the package.

Here's what we can tell you about what's inside. The package contained an object and we've been asked not to release what that object is. Also, a chapter list of the BTK story. Many of the chapters are the same from the chapter list sent to KAKE in May.

Up to this point we've only disclosed three chapters from that letter. But this letter is a little different: chapters one, two and eight are blank. Chapter eight was called MOID Ruse (ph) in the May letter.

Also in that letter, chapter 13 was titled "Will There More?" This letter contains chapter 13, "Will There Be More?"

UNIDENTIFIED MALE: You will find a homicide at 43 South Purginton (ph).

KUMARI: When Nancy Fox was murdered, her driver's license was taken from the scene. This package contains her driver's license. Her father tells KAKE it looks authentic.

The package has now been sent to the FBI to confirm whether it is really from the serial killer. The man who found it hopes it is.

UNIDENTIFIED MALE: BTK is getting real serious. And you know, I'll do my best to try to help out.

(END VIDEOTAPE)

KAGAN: That report coming to us from KAKE Television. This particular television station has had a front row seat to much of the BTK drama as it has unfolded recently.

Larry Hatteberg is a veteran newsman at the station, and he's joining me now to bring us up to date on this very bizarre case that has frightened much of Wichita.

Larry, good morning. Thanks for being here with us.

LARRY HATTEBERG, KAKE, WICHITA, KANSAS: Nice to talk to you, Daryn.

KAGAN: First, what do you think of this latest package that has shown up?

HATTEBERG: Well, it was certainly a surprise to us when we got a call from a viewer yesterday. And it does appear -- police are acting on the assumption that this particular package is from BTK because of the contents inside that plastic bag.

So they are assuming at this point, and they are checking with the FBI labs in Washington, to make sure this is from BTK. But at this point, they do believe it is.

KAGAN: Go back to May, when your station received another correspondent from what could be the BTK killer.

HATTEBERG: This station has received several correspondents from BTK, going all the way back to the mid'70s. BTK, we know, is a viewer of this particular television station. We know he watches us, because he has corresponded with us.

He came back into the forefront of the news last March and since then, he has written a number of letters. One, to this particular television station. In that particular letter, he enclosed chapters, like he was writing chapters of his life down for a book. He also enclosed an anagram, a word puzzle and then some pieces of identification that he may have used as a ruse to get into some people's homes. That was the letter -- the latest letter that we received here at KAKE Television.

KAGAN: So many strange aspects of this case, including the huge gap in time. You were mentioning nothing had really been heard from this killer since 1986. Any theories out there about why now? And how do they know it is this person, not just taking on the identity of BTK?

HATTEBERG: Well, the Wichita Police Department and the FBI labs have determined that the latest correspondence and all the contacts that we've had with BTK are the real deal. He is the real thing.

But this is the first serial killer that we know of that has gone dormant for over a decade and all of a sudden reappeared. That doesn't fit the normal serial killer mode. And that's what makes this story really so exceptional.

And there are a million theories out there as to why he disappeared and what happened to him. Some people thought he might have been incarcerated. Some people thought he might have died.

The other theory is that none of those is the case, that he was living right here amongst us. He was going to the grocery store with us. He was going to the movies with us and he is one of us. And he is BTK. He is a killer, and he is still at large. KAGAN: And what have these latest developments done to the mood in the Wichita community?

HATTEBERG: Well, the Wichita community -- when BTK came back the second time, I don't think there was an unlocked door in Wichita, Kansas. Young women, particularly, are very concerned about this guy, very concerned they could be his next victim.

People are -- people are very nervous about it; they're scared. I don't want to tell you that the community is terrified. I don't believe that's the case, because we've been living with this case now for about 30 years. So BTK has just become part of the coffee talk here in Wichita.

KAGAN: All right. And as we've said, you've covered the story for a long time. Thank you for these inside scoops and bringing us the latest from Wichita. Larry Hatteberg from KAKE Television, thank you.

And for all the latest legal news available online any time, just go to CNN.com/law.

SANCHEZ: There's a breaking story that we've been following for you here at CNN. It has to do with gunmen taking over a bus in a suburb of Athens Greece.

Throughout the day, they have let go of some of the hostages. That's one of the pictures we see there of a hostage being released. As many as 12 have been released thus far.

Let's get the latest now. Alessio Vinci is on the phone with us from Athens to bring us up to date on the very latest.

Alessio, what do you have?

ALESSIO VINCI, CNN CORRESPONDENT: Hello, Rick.

Well, I just arrived here on the scene. I'm about 100 yards away from the bus that you can now see on your television screen.

We believe -- at least Greek officials believe that negotiations appear to be going quite well with the hostage takers. Within the last half hour or so, hijackers have released two more hostages, bringing to 12 the total number of people released since this morning, when the gunmen seized the bus with at least 24 passengers on board.

Police have now surrendered -- surrounded, sorry, the entire area. Hundreds of anti-terror specialists, as well as several sharp shooters have taken up positions, in order to keep the bus under control.

The hijackers are believed be armed with guns as well as some explosives, which they have threatened to blow up should their demands not be met. They have requested this bus to be driven to the airport, where they would like a board a plane and be flown to Russia. Authorities are having a hard time to establish the identity of the hijackers, but they are working under the assumption that they are Albanian -- Albanian nationals.

And so far, there has been just a brief exchange of fire between the two sides early this morning. But in the last few hours, everything has been quiet.

Back to you, Rick.

SANCHEZ: But the only thing that really is completely unanswered at this point is why they're doing this, right?

VINCI: That is correct. And that is why the authorities are really not giving much information, other than saying that these hijackers have requested to go to Russia. It does seem quite an odd request, to be just flown to Russia, if indeed, these two hijackers are -- are Albanian nationals.

So this is a question that the negotiators and police officials on the scene are trying to answer, trying to see, perhaps, if there are any other motives behind this hijacking.

SANCHEZ: Right. CNN's Alessio Vinci, joining us, as you can see there, on the phone, keeping us up to date on the story that we've been following for you for the better part of a couple hours here at least on CNN. And we will continue to do so.

Daryn, over to you.

KAGAN: If you use a cell phone, you're going to care about this big story. Two big telecoms connecting on a merger this morning, Sprint and Nextel's combination, highlighting a consolidation trend in the cell phone industry.

We're going to focus on the deal this hour. If your monthly bill is your bottom line. We're going to talk about that as well.

First to New York and financial correspondent Allan Chernoff.

Allan, good morning.

ALLAN CHERNOFF, CNN CORRESPONDENT: Good morning to you, Daryn.

Well, we've got merger mania hitting the telecom industry. A few weeks ago, Cingular and AT&T Wireless said they would combine to create the biggest wireless company.

Well, now we have Sprint and Nextel connected in a $35 billion deal. The combination would create the No. 3 wireless provider, after Cingular and Verizon Wireless, with 35 million subscribers.

Now Nextel specializes in mobile phones that have walkie-talkies. The company needed to upgrade its technology to offer more services like Internet browsing. And now, it can simply make use of Sprint's infrastructure. Sprint will now be able to offer a solid walkie-talkie service. It has a similar service but the quality is not nearly as good as Nextel.

Now, for both companies the deal means big savings, $12 billion worth. And here's how they plan to do it: reduce the number of cell sites, cut infrastructure spending and combine billing, customer service and marketing operations. And you can certainly bet that will mean layoffs, the companies confirming there will be a reduction in head count.

The companies also intend to spin-off Sprint's local phone business. And that means Sprint Nextel will be what Wall Street calls a pure plate wireless. And analysts say the new company will tell customers to cut the cord, give up your home phone and go completely wireless -- Daryn.

KAGAN: The next chapter. Allan, thank you.

SANCHEZ: Well, you always ask those questions. Whenever you see two big companies like this coming together and merging, aside from what the investors and all the suits think, what does it mean for us? How does it affect the little guys?

Let's go to CNN personal finance editor, Gerri Willis. She's going to try and give us a perspective on this. And she's joining us from New York.

Gerri, good to see you again.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey, Rick. Good to see you.

Customer advocates this morning are saying that today's deal, and the many ones we've heard about like it, could mean higher prices and diminished services for consumers.

Now, we spoke to Gene Kimmelman of the Consumers Union, and he described his concerns.

(BEGIN VIDEO CLIP)

GENE KIMMELMAN, CONSUMERS UNION: You've got to watch out. For the consumer, you want to make sure there's more than one or two players in the market so that there actually are incentives to keep increasing quality to improve the service for the consumer.

(END VIDEO CLIP)

WILLIS: Now, it's not just Consumers Union that's concerned. The Consumer Federation of America this morning also telling us that they have worries, as well, very similar.

However, interestingly, they say, this is not as negative for customers as the AT&T/Cingular deal, because it's not as big. On the flip side, Rick, Wall Street analysts saying that maybe price increases are not just over the horizon for customers because there are many regional wireless carriers, more and more getting into the business all the time because Sprint is selling access to its network. They say that prices won't go up dramatically because of that -- Rick.

SANCHEZ: All right. Gerri Willis, letting us know what we might be in for from New York. Thanks again, Gerri.

WILLIS: You're welcome.

KAGAN: Very interesting there. You know, also the other cell phone. There we go, as we say in the biz, a two-shot.

I am learning. I'm learning from you.

SANCHEZ: You're really got it figured out, don't you?

KAGAN: Other cell phone news that we'll be talking about. They're talking about, the FCC, letting you use your cell phone on an airplane. Don't know if that's a good idea. But Daniel Sieberg will be along to talk about that.

SANCHEZ: Cell phones are just becoming so universal.

cAlso, if you're planning to drive to Grandma's this Christmas, with or without a cell phone, you may want to take care. Hear why officials expect more fatalities than usual on America's roads and highways.

KAGAN: And President Bush's ambitious second term economic agenda is under fire. We'll ask the president's top economic advisor how the White House plans to pay for that.

KAGAN: And it's the White House through some very different eyes. You don't want to miss this one. You're watching CNN LIVE TODAY.

(COMMERCIAL BREAK)

SANCHEZ: In Washington today, President Bush and Vice President Cheney are hosting a two-day summit to promote their pocketbook initiatives for the second term. Big ticket items like Social Security, tax reform, lawsuit abuse and deficits are going to be on the table.

The president invited business leaders and economists to the talks. But Mr. Bush has already spelled out his position on many of these ideas. And most of the plans, like personal investment accounts for Social Security, carry sticker shock price tags in an era of deficits.

Steve Friedman is one of the president's top economic advisors.

In fact, you're really hosting this thing. You're helping to put it together, right, Mr. Friedman?

STEVE FRIEDMAN, ECONOMIC ADVISOR TO PRESIDENT BUSH: Yes, I am, Rick, thanks.

SANCHEZ: It's always good to have you. It's really a pleasure. You've been getting a lot of ink on this question. So let me go ahead and ask you straight up front.

Who's going to be there to raise the questions that many say need to be raised? In other words, is this going to be just a Kumbaya session between people who already agree with each other? Or will there be some people there who already have different opinions? And if not, why not?

FRIEDMAN: Well, Rick, I think -- I think the administration has reached out -- reached out to people from a diverse range of backgrounds. And I think all the key issues are going to be put on the table.

On the issue that you just touched on, the need to increase national savings, and to reduce the budget deficit. We've already -- in the first panel, which I chaired, we've already heard discussion of that.

And so, I don't think any of the challenges this economy faces will be -- will be off the table.

SANCHEZ: But is there anybody -- here's what was described in most of the big newspapers, like the "Washington Post": "A hand-picked panel of business executives with close ties to the White House."

Is there anyone who's going to be at this conference who doesn't fit that description?

FRIEDMAN: Well, you know, I don't -- I don't think these are people who are -- who are -- who are short of a range of personal views, nor will they be shy about expressing them. So, I don't think any of the key issues will be -- that the economy faces will be off the table.

As I said, in the first panel, we already started hearing them. I think you do want to put this in the context that Marty Feldstein of Harvard did in his closing remarks.

Four years ago, when they had a summit in Waco, the economy was -- was in or moving into a recession, and -- and the president-elect was hearing some alarming things.

This year, we are in a -- in a very strong and positive economy that's moving forward, and it is now time -- we now have the wind at our backs and we can now face some of the longer term challenges that need to be dealt with to keep the economy strong in the decades ahead.

SANCHEZ: Everyone seems to be talking about the trade deficit. Make us understand why this is such a big concern and what our government is going to be doing about it. Because so many people have been saying that if we don't get that thing under wraps, then the dollar is going to be devalued and we're going to have some real serious problems.

Could you put that in perspective for us?

FRIEDMAN: Yes. I won't speak about the dollar, per se. The secretary of the treasury and the president are the only ones of the administration who talk about currencies.

But I will say that it's very, very important for us to increase our national savings. And that's something that the president has been very clear about. He wants to -- he wants to reduce the budget deficit, cut the deficit in half by 2009. That has -- has a direct impact on the trade deficit.

And he's determined to do this by spending discipline here in Washington and by pro growth policies.

Now, it's an issue that is going to -- the U.S. trade deficit has got its counter balance in the surpluses of countries abroad. And this is something that our foreign trading partners are going to have to be partners in dealing with this, also.

And what we really need is -- also, is more aggressive pro growth policies with some of our trading partners. Because when our foreign trading partners are growing more robustly, they are a much better market for American exports. And -- and that's a very important part of the equation.

SANCHEZ: It's good to hear that that's a top priority.

We certainly thank you, Mr. Friedman, as usual. You've got a big job on your hands today. We wish you well and we thank you for being here and sharing your insight with us.

FRIEDMAN: Thank you, Rick.

SANCHEZ: Appreciate it.

Well, you know, there's more on the economic summit next hour with Wolf Blitzer. Treasury Secretary John Snow is going to join Wolf live. That's at noon Eastern, of course, to discuss the president's proposals.

KAGAN: President Bush kind of a busy guy today: not only the economic summit, also meeting with the Italian prime minister this morning. And we're expecting some comments from there shortly. We'll bring that to you when it comes in.

SANCHEZ: Also, homeland security officials are weighing in on whether to change the current color-coded terror threat system. Boy, there's a mouthful.

KAGAN: Yes. You did it well, though.

Plus a famous dog wishing you a happy holiday. We're going to visit with Barney, coming up.

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SANCHEZ: Well, rev up your engines, folks. The holiday rush is on. AAA is saying the traffic is going to be up about three percent this year with 51 million people on the roads. That's because Christmas and New Year's fall on a Saturday.

Busier roads increase the likelihood of accidents, as well, as you know. So federal officials are urging everyone, and so are we, just be patient. Take care, you'll get there.

KAGAN: All right. Different form of transportation we're talking about now: airplanes, cell phones. Can't use them now, but the FCC is meeting this morning to consider a plan that would allow you to use your cell phone during a plane flight.

Our technology correspondent Daniel Sieberg is here.

Of course, if you can use your cell phone, so can the obnoxious guy next to you while you're trying to sleep.

DANIEL SIEBERG, CNN CORRESPONDENT: Exactly, while you're trying to sleep. And maybe go to the one place where there aren't cell phones these days. They do seem to be everywhere, aren't they?

Well, the issue is certainly going to push people's buttons. There are those who relish the chance to escape the ubiquitous cell phone, while a few others do see it as a great opportunity.

The FCC is meeting today to discuss how cell phones at 35,000 feet might interfere with cell use on the ground and considering licenses for the technology.

Now, the FAA, meanwhile, is concerned about how cell phones will affect electronics on board an airplane. They've commissioned a private study to be completed by 2006 and says it won't decide anything until after that time.

The question is, could an active cell phone cause a crash or cause some sort of problem on board an airplane? Well, you can just think about the people who have packed their cell phone in a carry on luggage back and left it on without incident. Maybe some of us have done that, as well.

Some say that there is a chance, however remote, that something could go wrong. You'd have to have a really specific set of circumstances.

You might remember that some cell phone calls were made to loved ones from the hijacked planes on September 11. But experts are saying that probably had more to do with the plane's close proximity to the ground.

So the issue really seems to be over whether travelers would embrace it. Now I think we can go to something here. There's a rather unscientific poll on CNN Money's web site. It shows a majority of people are against the idea. I don't know if we have that.

There we have it. I think it says it was about 54 percent saying no. The last time I had a look at it, saying they would not agree to having cell phones on board an airplane.

And we talked to some people earlier. They would rather have the data available, not necessarily talking. And this is likely because, as we said, they would be in such close proximity with talkers and probably loud talkers to talk over the din of an airplane and nowhere to go.

There is certainly plenty of issues to work out: which carriers or carrier will provide the service? How much will the calls cost? Could there be roaming charges involved? And will the calls be limited in some way? And how could that be possibly monitored by these poor overworked flight attendants? And could this become the newest air rage or a huge advantage, depending on how you look at it?

KAGAN: Actually, my partner, Rick Sanchez, had a good idea. You create, like, a phone zone in the plane, like the old smoking zone.

SIEBERG: Right. Like they need phone booths or something like that.

KAGAN: You've got to go to the back of the plane and be with all those other talkers.

SIEBERG: Right.

KAGAN: You're not sitting next to me talking on your cell phone.

SIEBERG: That's going to be the new plane etiquette.

KAGAN: That's it.

SIEBERG: Go to the back of the plane.

KAGAN: Thank you.

SIEBERG: All right.

KAGAN: Daniel Sieberg, appreciate that.

Well, our financial news any time, CNNMoney.com. Track your stocks and sign up for breaking news e-mail alerts, 24/7, by the way.

SANCHEZ: It is a dog day afternoon at the White House. And we mean that in the best possible way. Stick around to see this holiday spoof from the president's staff.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I've already given you an important job.

(END VIDEO CLIP) SANCHEZ: Listen to this. This gets good, folks. It's the first pooch, Barney, putting the president in his place. Or wait, or is it the other way around? Stick around and find out.

(BEGIN VIDEO CLIP)

BUSH: Now, I don't want you chasing Willie around the house anymore. You understand that? I'm counting on you.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

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