April 1999

-- Happy April's Fool Day --

ACCESS TO GOVERNMENT INFO
Behind Closed E-Mail (NYT)

CABLE/TELEVISION
Cable-TV Firms Pledge A Tight Rein On Price Increases (WSJ)
CBS Expected To Buy King World $2.4 Billion (WSJ)

TELEPHONY
Bell Atlantic-GTE Deal Hits Snag in Va. (WP)
Cell Phone Use Up Dramatically (WP)
Hang-ups for Iridium Phone Firm (ChicagoTrib)
Free Voicemail -- If You Listen To Ads (SJ Merc)

INTERNET
IBM Takes Stand for Consumer Privacy on Web (CyberTimes)
Microsoft Aims To Be Big Player In Music On The Net (WSJ)
Movie Buffs Find A Reel World on The Internet (WSJ)
Between Tech Fans And Naysayers, Scholarly Skeptics (NYT)

ACCESS TO GOVERNMENT INFO

BEHIND CLOSED E-MAIL
Issue: Privacy/Politics
How does the increasing use of e-mail by elected officials effect the
public's "right to know"? This question is one that local governments are
having to grapple with more and more. While most states and the Federal
Government have "sunshine laws" that require the public to be informed of,
and invited to, meetings regarding policy decisions, there is ambiguity
about how these laws apply to online exchanges. Public interest advocates
worry that the politicians are using e-mail as a way to circumvent citizen's
rights to witness the policymaking process. "In a lot of cases, it is the
public that gets injured when meeting laws have been worked around or if
people are trying to cover things up," said Ari Schwartz, a policy analyst
with the Center for Democracy and Technology.
[SOURCE: New York Times (E1), AUTHOR: Tina Kelly]
(http://www.nytimes.com/library/tech/99/04/circuits/articles/01meet.html)

CABLE/TELEVISION

CABLE-TV FIRMS PLEDGE A TIGHT REIN ON PRICE INCREASES
Issue: Cable
The cable industry is officially deregulated today and industry executives say
prices will remain steady -- mirroring average boosts that occurred in 1998 and
1997 when the industry was regulated. "I think the industry is going to be as
restrained as possible," says Charles Dolan, chairman of New York based,
Cablevision Systems. Industry executives say that competition with satellite
companies is leading them to keep prices down, even though companies are
spending billions to upgrade with such services as interactive video, phone,
Internet, high speed data and digital services. William Fitzgerald, AT&T
executive vice president, says all of these upgrades are with the customer in
mind: "Everybody is sensitive to keeping customers as satisfied as possible."
Fitzgerald says TCI rates will increase 4% --no more than last year.
Federal Communications Commission Chairman Kennard says Congress and the
FCC will be keeping close watch on the newly deregulated industry that has been
regulated since 1993. One issue that may effect what customers are charged is
programming. Some companies, like Cablevision, say they would like to offer
sports programming (like ESPN) on its own tier so that customers who don't
want it don't need to buy it in a package. Cablevision's Dolan says he is
frustrated that contracts with the companies, like Walt Disney's ESPN, won't
allow it. FCC Chairman Kennard says he would like customers to be able to pick
and choose programs, but packaged programs are a necessary evil to keep prices
lower in the long haul.
[SOURCE: Wall Street Journal (B12), AUTHOR: Leslie Cauley]
(http://wsj.com/)
See also:
CLAMPS COME OFF MOST CABLE RATES
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Tim Jones]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904010165,00.html)
SUNSET OF CABLE RATE REGULATION
Issue: Cable
The Commission has adopted an order implementing provisions of the
Telecommunications Act of 1996 that reform several parts of the Cable
Television Consumer Protection and Competition Act of 1992. These are
generally known as the "Cable Reform" provisions. The order also includes
information about the sunset of the Commission's role in regulating rates on
the cable service programming tier ("CPST"). The Cable Reform provisions
include sections on effective competition to a cable system, small cable
operator rules, uniform rate requirements, technical standards and
subscriber notice. [See Press Release
(http://www.fcc.gov/Bureaus/Cable/News_Releases/1999/nrcb9005.html)]
Chairman Bill Kennard also launched the Cable Consumer Bill of Rights
Campaign
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9015.html)
to inform cable subscribers of their options in the wake of the sunset.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Cable/Orders/1999/fcc99057.txt)

CBS EXPECTED TO BUY KING WORLD $2.4 BILLION
Issue: Merger
CBS is expected to announce that it will buy Kind World Productions,
television's largest syndication company. This would bring together the
strength of CBS programs like 60 Minutes with syndicated programs, such as
Jeopardy and The Oprah Winfrey Show. Networks have been looking for ways to
expand their business beyond their own programming. People close to the deal
say negotiations are focused now on what role King World top executives will
play in the new combined CBS/King World company. Included in the deal will be
Eyemark, CBS's own in-house syndication company that produces Martha Stewart
Living. CBS will have access to KingWorld's advertising sales force, its
program library, and contracts with local stations. Recently KingWorld has
developed a new children's programming division, a prime-time series and a
merchandizing arm.
[SOURCE: Wall Street Journal (A3), AUTHOR: Kyle Pope]
(http://wsj.com/)

TELEPHONY

BELL ATLANTIC-GTE DEAL HITS SNAG IN VA.
Issue: Merger
The Virginia State Corporation Commission dismissed the Bell Atlantic and
GTE merger application yesterday and gave them 180 days to answer a group of
questions and refile. The SCC said that it "disapproved and dismissed,
without prejudice" the merger petition. The commission worries about
anti-competitive effects and harm to consumers since the merged organization
would control about 92% of all local phone lines in Virginia. Bell Atlantic
and GTE counter that the merger would benefit Virginians by expanding local
calling areas and reducing toll calling. Twenty-four states have already
approved the merger; Virginia is the first state to pose an obstacle. The
Justice Department and the Federal Communications Commission also must
approve the deal.
[SOURCE: Washington Post (E3), AUTHOR: Mike Mills]
(http://www.washingtonpost.com/wp-srv/business/daily/march99/bell1.htm)

CELL PHONE USE UP DRAMATICALLY
Issue: Telephony
Fierce competition continues to drive down monthly charges and drive up use
in the mobile telephone industry. According to the Cellular
Telecommunications Industry Association, US users increased 25% last year
from 55.3 million to 69.2 million people. Twenty-eight percent of
subscribers have the newer digital mobile phone service with improved sound
quality and more features. Thomas Wheeler, president of CTIA, said, "It's
not your father's car phone anymore." Reflecting competition that has as
many as six different mobile phone providers, customers' average monthly
bill decreased by 7.8% last year to $39.43. Industry revenues, meanwhile,
rose 20% last year to $36.6 billion, reflecting customer growth and an
increase in talk time.
[SOURCE: Washington Post (Online), AUTHOR: Jeannine Aversa]
(http://www.washingtonpost.com/wp-srv/WAPO/19990331/V000033-033199-idx.html)

HANG-UPS FOR IRIDIUM PHONE FIRM
Issue: Telephony
Iridium, the phone service that uses dozens of low-Earth-orbit satellites to
provide service anywhere around the globe, is in trouble. The company has
not met sales targets and may default on its loans. The system is heavily
backed by Motorola which will step up efforts now to give Iridium technical
and marketing assistance. Of course, the problem may be competition:
Iridium's system uses $3,000 phone that weigh about one pound and it costs
$3/minute to make calls; digital wireless phones now cost about $150, fit in
a shirt pocket and cost as little as $0.10/minute to use. You do the math.
Some think Iridium can be saved, by telecom consultant Jeffery Kagan warns,
"If investors get scared, irrational fears can plan funny tricks on an
emerging industry segment."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904010314,00.html)

FREE VOICEMAIL -- IF YOU LISTEN TO ADS
Issue: Telephony
In a service targeted at 12- to 24-year-olds who don't have their own phone
lines, Blue Diamond Software will launch a free voicemail service next
month. Users will be able to send and retrieve voicemail for free on
EchoBuzz in exchange for agreeing to listen to advertising when they access
the service. When consumers pre-register for the voicemail box at the
service's Web site (http://www.echobuzz.com), they will fill out "a brief
personal profile" that will allow the service to personalize 3- to 10-second
ads tailored for the caller's specific interests. EchoBuzz members will hear
approximately one to three ads per call. In the future, users will be able
to be paged or e-mailed when a voice message is received. [Are we surprised
that the first area where the service will be available is Los Angeles?]
[SOURCE: San Jose Mercury News, AUTHOR:Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/295866l.htm)

INTERNET

IBM TAKES STAND FOR CONSUMER PRIVACY ON WEB
Issue: Privacy
The second largest advertiser on the Internet, IBM, plans to take action to
help insure greater consumer privacy online. Yesterday, in the face of
looming threats of government regulation, IBM announced that it would pull
its advertisements from any sites that lack clear privacy policies. The
company's own survey shows that only 30 of the 800 sites on which it
advertises currently post a privacy policy. IBM and other companies are
desperate to prove that self-regulation alone can be effective in protecting
consumer information. The Federal Trade Commission is scheduled to report to
Congress this spring on whether or not laws are needed to privacy online.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/01ibm-ad-column...)

MICROSOFT AIMS TO BE BIG PLAYER IN MUSIC ON THE NET
Issue: Intellectual Property/Ecommerce
Microsoft is getting some flack from record companies as it tries to implement
its digital delivery system, MS-Audio. Customers will be able to click and
download music that they can play on their computers for several months.
Microsoft has persuaded some artists, gearing up for its April 13 launch on
Sunset Strip in Los Angeles. Artists will receive heavy promotion on MSN.com in
exchange for signing up. Music executives say Microsoft's system is not secure
enough and are annoyed at the company for ignoring industry-initiated efforts
to develop their own secure delivery systems on the Net and develop a standard.
In a letter to music executives, Microsoft said they are concerned with
preventing piracy, but urged executives to "commit quickly." Decisions will
need to be made by April 2 for the April 13 launch. Microsoft says its new
software is faster, takes up less space and has better sound quality than MP3,
the software that has led to an explosion of Internet music piracy. MS Audio
has a "rights-management" feature that requires consumers to get permission to
play a song by providing their pre-reported personal information before they
can play it.
[SOURCE: Wall Street Journal (B1), AUTHOR: Eben Shapiro]
(http://wsj.com/)

MOVIE BUFFS FIND A REEL WORLD ON THE INTERNET
Issue: Internet
Lucy Mohl, editorial director of film.com says that movie sites are popular
among film fans because they provide the latest information as well has
historical resources. The sites are also building a community she says. After
Stanley Kubrick's death last month, the Web drew people together. On March 11
the joint LucasFilm/Apple computer Web site featured a trailer for the next Star
Wars movie. In the 24 hours that followed the 2.5 minute trailer was
downloaded over one million times. There are several sites that provide
information on particular genres as well as more general information sites like
the Internet Movie Database (www.imbd.com). IMDB is owned by Amazon.com and
offers a searchable directory of films going back to the 19th century as
well as biographies of actors and directories. The article lists several
movie-related sites.
[SOURCE: Wall Street Journal (B10), AUTHOR: Sharon Clearly]
(http://wsj.com/)

BETWEEN TECH FANS AND NAYSAYERS, SCHOLARLY SKEPTICS
Issue: Philosophy
While most of us have heard of fanatics who either eagerly embrace
technology or loath it, less attention is paid to a group of individuals who
are cautiously skeptical of the impact of technology. Philosophers like Hubert
L.Dreyfus, Joseph Weizenbaum, and Albert Borgmann, while all accepting and
using technology, are deeply concerned about the social and political
implications of our culture's increasing dependence on it. Dr. Winner, a
political scientist at the Rensselaer Polytechnic Institute, questions what
will happen to the balance of power and authority in our society if the
Information Super Highway is built up in a way which by-passes many
minorities and low-income people. In addition, Dr. Winner worries about the
ways that the Internet has begun to threaten "crucial forms of locally-based
commerce." He gives the example of Amazon.com's affect on local,
independently owned bookstores. A retired M.I.T. computer scientist, Dr.
Wiezenbaum paints a particularly sordid picture of cyberspace. "The Internet
is like one of those garbage dumps outside of Bombay," he said. "There are
people, most unfortunately, crawling all over it, and maybe they find a bit
of aluminum, or perhaps something they can sell. But mainly it's garbage."
[SOURCE: New York Times (E7), AUTHOR: Katie Hafner]
(htp://www.nytimes.com/library/tech/99/04/circuits/articles/01skep.html)

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