July 1999

MEDIA & SOCIETY
Latinos Plan Boycott of Network TV (WP)

DIGITAL DIVIDE
The Digital Divide: Bridging the Technological Gap (NTIA)
ITAA Tells Congress: 'Digital Opportunity' Exists for High
Tech Industry and Users (Business Wire)

INTERNET
Internet Provokes Wave of Tech-Related Mergers (WSJ)
A New Breed of ISPs Emerges Filtered (CyberTimes)
U.S. Drafting Plan for Computer Monitoring System (NYT)
Can Cisco Systems and the Internet Save the Third World? (SJM)
Positions Harden in Instant-Message Fight (NYT)
Web Radio: No Antenna Required (WSJ)

CABLE
AT&T Puts Its Name on TCI Cable (ChiTrib)
Cox to Buy Gannett's TV Assets (WSJ)

TELEPHONY
More Using Cell Phones Instead of Home Phones (USA)
BT to Acquire Rest of Cellnet for $5 billion (WSJ)

ECOMMERCE
Chicago-Based Network Wants to Transform Into a Stock Exchange (ChiTrib)
Telecom Subcommittee To Markup Bliley E-Sign and Database Bills (House)

POLITICS
Technology Industry Lags Behind in Campaign Contributions (CyberTimes)
Industry Skepticism Clouds Agenda Gore Is Pushing in High-Tech
Policy (WSJ)

MEDIA & SOCIETY

LATINOS PLAN BOYCOTT OF NETWORK TV
Issue: Media & Society
"If these networks don't want to hire us, then we don't have to watch their
product," said Alex Nogales, spokesman for the National Hispanic Media
Coalition, one of 10 Latino civil rights, professional and community
organizations that have launched a week-long boycott of the four major
television networks -- ABC, CBS, NBC and Fox. Leaders of the alliance have
blasted network executives for the "virtual absence of Latino images" and
are asking Hispanics not to watch any programming on the four networks on
the week beginning September 12th. This "national brownout" is the first
step in the alliance's year-long campaign to pressure the networks into
casting more Hispanic actors in more positive roles. The recent criticism
from Hispanic associations and the National Association for the Advancement
of Colored People (NAACP) has prompted the networks to defend themselves.
They have called diversity a "priority" and challenged civil rights groups,
citing the number of minority roles already on prime time shows.
[SOURCE: Washington Post (C1), AUTHOR: Michael A. Fletcher]
(http://washingtonpost.com/wp-srv/WPlate/1999-07/28/128l-072899-idx.html)
See Also:
LATINOS URGE TUNING OUT SO TV WILL PLUG IN DIVERSITY
[SOURCE: USA Today (1D), AUTHOR: Jefferson Graham]
(www.usatoday.com)

DIGITAL DIVIDE

THE DIGITAL DIVIDE: BRIDGING THE TECHNOLOGICAL GAP
Issue: Digital Divide
NTIA Administrator Larry Irving testified on "The Digital Divide: Bridging
the Technological Gap" before the Empowerment Subcommittee of the House
Committee on Small Business: Access to new technologies, such as the
computer and the Internet, will be key to the future economic success of
American businesses, communities, and individuals. To begin with, the
Internet is becoming an important tool for personal success and professional
advancement. Increasingly, Americans are using it to find jobs, contact
colleagues, locate public information, or take courses online. Familiarity
with new technologies will also prepare more Americans for the high-tech
workplace of the 21st century. (Text of testimony at URL below)
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/congress/li_empsub19990727.htm)

ITAA TELLS CONGRESS: 'DIGITAL OPPORTUNITY' EXISTS FOR HIGH TECH INDUSTRY AND
USERS
Issue: Digital Divide
Harris N. Miller, President of the Information Technology Association of America
(ITAA), today testified before the House Small Business Subcommittee on
Empowerment, rejecting the concept of a "digital divide," and instead
calling it a "digital opportunity." [You say, potato, and I say, business
opportunity] Mr Miller said that Internet penetration has grown 3 times as
fast as previous technologies and that the industry will reach segments of
population not yet online through reducing price, providing targeted
content and improving competitive access. "Affordable price, compelling need
and easy access are industry's building blocks for the bridge over the
technology gap. The marketplace is working quickly to capitalize on the
'digital opportunity', where addressing the needs of all current and future
customers becomes an economic priority in order to grow the high tech
industry," Mr. Miller said. "ITAA has set itself on a course to attract
minority workers into the high tech industry, where the numbers of degrees
awarded to minorities are disturbingly low. Creating a vested interest in
the technology is another way industry is bringing in new users." Learn more
about ITAA and its positions
on the issues by connecting to its web site at http://www.itaa.org .
[SOURCE: Business Wire]

INTERNET

INTERNET PROVOKES WAVE OF TECH-RELATED MERGERS
Issue: Mergers
Broadview Associates of Fort Lee, New Jersey notes that
information-technology, communications and media companies announced 2,900
deals valued at $545 billion in the first six months of this year. That
exceeds the $488 billion from all of last year. Forty-seven digital media
companies went public in the first half of this year, far more than the 18
companies in all of 1998. The big-fish-eat-little-fish trends include: 1)
small Internet companies gobble up smaller Internet companies for a bigger
presence on the Web and 2) large companies are gobbling up companies that
will bring them into the market of emerging technologies and services. For
example, Lucent and Nortel are buying up companies that are experts in
Internet traffic and Intel and Texas Instruments are acquiring chipmakers.
[SOURCE: Wall Street Journal, B2, AUTHOR: Scott Thurm]
(http://wsj.com/)

A NEW BREED OF ISPs EMERGES FILTERED
Issue: Internet
Two high-profile developments might spur the growth of "filtered ISPs" that
would make it easy for families to keep objectionable material off their
computer screens. Tim Robertson, son of the evangelist Pat Robertson and the
former chief executive of The Family Channel, plans to start a filtered ISP
in the fall called FamilyClick.com. Another group plans to launch its own
filtered online service, this.com. There are at least two dozen filtered
ISPs in the U.S. and the companies say filtered ISPs are a safer bet than
blocking software installed on home computers because the ISPs are not as
easy for clever youngsters to circumvent. Most of the services were started
by people of religious backgrounds, but Robertson says, "This is for
families. We don't care what religion they are." Brad M. Daniel, chief
executive of Florida-based this.com, says, "The whole goal here is to
protect kids, whether your background is Jewish, Christian, whatever,"
adding that his company is not tied to any religious group. Though filtered
ISPs are expected to continue to grow, criticism of the technology remains.
They may not be foolproof and there is concern they will be used in schools
and public institutions.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/07/cyber/education/28education.html)

U.S. DRAFTING PLAN FOR COMPUTER MONITORING SYSTEM
Issue: Security
The U.S. government is creating a computer monitoring system intended to
protect the nation's crucial networks from intruders. "Our concern about
organized cyber attack has escalated dramatically," said Jeffrey Hunker, who
oversees the development of a plan at the National Security Council. "We do
know of a number of hostile foreign governments that are developing
sophisticated and well-organized offensive cyber attack capabilities and we
have good reason to believe that terrorists may be developing similar
capabilities." Civil liberties groups, however, are concerned about the
implications of the National Security Council's plan for a sophisticated
software system to monitor activities on non-military government networks
and a separate system to track networks used in the banking,
telecommunications and transportation industries. Critics of the proposed
system say it could eventually be used to create a surveillance
infrastructure with great potential for misuse.
[SOURCE: New York Times (A1), AUTHOR: John Markoff]
(http://www.nytimes.com/library/tech/99/07/biztech/articles/28compute.html)

CAN CISCO SYSTEMS AND THE INTERNET SAVE THE THIRD WORLD?
Issue: Internet
In the 80s there was Live Aid, now we have NetAid. Cisco Systems and the
United Nations Development Program, along with others, are planning a
global musical extravaganza to raise money for Third World anti-poverty
programs. The co-sponsors are developing a massive NetAid Internet site --
designed to handle up to 60 million hits in an hour -- that will feed real
time video of the concerts. More than just raising money, the site is
intended to help people become knowledgeable about, and involved in,
efforts to end hunger and disease. Cisco is also creating the NetAid
Foundation, which will oversee the grants to U.N. development programs.
[SOURCE: San Jose Mercury News, AUTHOR: John Fensterwald]
(http://www.mercurycenter.com/svtech/news/viewpoints/docs/jf072899.htm)

POSITIONS HARDEN IN INSTANT-MESSAGE FIGHT
Issue: Internet
The dispute between Microsoft and AOL, which broke out when Microsoft
introduced new software that lets users send instant messages both to users
of Microsoft's Hotmail and AOL Instant Messenger (AIM) software, continues
this week. America Online said that Microsoft was acting like a hacker,
connecting to its system without authorization. Microsoft, however, contends
that it is guilty of no wrongdoing. "There has been and is no unauthorized
use or access of AOL's services or products," wrote Brad Chase, a vice
president of Microsoft. "Nor has Microsoft violated the privacy or security
of any AIM users." Microsoft has declined an invitation from AOL to discuss
a possible accord.
[SOURCE: New York Times (C2), AUTHOR: Saul Hansell]
(http://www.nytimes.com/library/tech/99/07/biztech/articles/28mail.html)
See Also:
AOL, MICROSOFT STILL DEADLOCKED ON MESSAGING
[SOURCE: Washington Post (E3), AUTHOR: Rajiv Chandrasekaran]
(http://washingtonpost.com/wp-srv/WPlate/1999-07/28/118l-072899-idx.html)

WEB RADIO: NO ANTENNA REQUIRED
Issue: Radio/Internet
Operating a radio station used to mean building a transmitter, winning a
license from the Federal Communications Commission and following numerous
complex rules. Now, with cyber-radio, all operators would need is a server
computer with a high-powered Internet connection and software capable of
streaming audio files online. The listeners only need an audio software
package, such as Real Network's Real Audio, which is either pre-loaded on
some computers or can be downloaded off the Web for free. People listen to
online music a lot at work through high-speed connections, which
make the sound much smoother. Some sites for cyber-radio are spinner.com,
imagineradio.com, netradio.com, gogaga.com and swingradio.com. Once again,
the Internet is taking the power of mass media and putting it in the hands
of the masses. (My colleagues listen to jazz but when they leave the room I
find the cool 80s tunes -- rock on Pat Benatar!)
[SOURCE: Wall Street Journal, B1, AUTHOR: Thomas E. Weber]
(http://wsj.com/)

CABLE

AT&T PUTS ITS NAME ON TCI CABLE
Issue:
"They are taking a risk putting their brand name on the TCI network at this
early stage when TCI is not known for the same quality and reliability that
AT&T is," said Jeffrey Kagan, an Atlanta-based telecommunications
consultant. "You have to wonder if they aren't jumping the gun and putting a
Mercedes name on a lemon." It may have been inevitable, but some are
questioning the timing of AT&T's move before upgrading TCI's cable systems
and enabling them to deliver high-speed Internet and local phone service.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99072801
37,FF.html)
See also:
WHAT'S IN A NAME?
[SOURCE: New York Times (C11), AUTHOR: Stuart Elliot]
(http://www.nytimes.com/yr/mo/day/news/financial/att-ad-column.html)

COX TO BUY GANNETT'S TV ASSETS
Issue: Television
In another deal to further the consolidation for the cable business, Cox
Communications bought Gannett's cable-TV assets for $2.7 billion in cash. This
means that Cox is paying $5,100/subscriber as it will get about 525,000
subscribers in Oklahoma, Kansas and North Carolina. These systems are 75%
upgraded for interactive TV, Internet access, high-speed data connections and
telephone service. Cox will get a tax savings of $350 million for this deal.
This just goes to show the digital craze as years ago, cable customers were
only worth $1,500 each but with the latest AT&T deals, those numbers have
soared. This deal puts Cox in contention for the number three spot in the U.S.
cable industry. (My mother always said I'd be worth a lot of money...well look
at me now at $5,100!)
[SOURCE: Wall Street Journal, A3, 7/26/99 AUTHOR: Leslie Cauley]
(http://wsj.com/)

TELEPHONY

MORE USING CELL PHONES INSTEAD OF HOME PHONES
Issue: Cellular
According to a survey by the Yankee Group, a growing number of customers
are disconnecting their home phone and using their wireless phone instead.
With prices dropping an average of 30% a year, handsets getting lighter,
batteries lasting longer, coverage of areas improving and the availability
of additional services (such as hooking up your computer to the cell
phone), people are using their cellular phones more. There is an estimated
72 million cellular customers and 2% use their cellular as their only
phone. That number is up from only a handful in 1998. Omnipoint says 9% of
its customers who signed up in the past year do not have a wired phone. The
minutes of use are also up from 115/month in 1997 to approximately 400/month
today. Yankee analyst Mark Lowenstein said the cell phone is great for
college students who do not want to share a phone or a bill with their
roommates as well as single people who are always on the go. He also
speculated that soon wired networks would mostly be used for Internet
connections.
[SOURCE: USA Today (1A), AUTHOR: Steve Rosenbush]
(http://usatoday.com/)

BT TO ACQUIRE REST OF CELLNET FOR $5 BILLION
Issue: Mergers
British Telecommunications (BT) agreed to acquire the additional 40% of
Cellnet that it does not currently own. Until January of this year, BT was
restricted by the government from owning more than a 40% stake in any
United Kingdom mobile phone company. Cellnet is one of four British
wireless providers and second in size to Vodafone AirTouch. BT plans on
working on next generation wireless and the U.K. government is planing on
selling new service licenses in the fall -- so the wireless market has a
lot of potential for growth. One-2-One, another cellular rival is up for
sale as well. Cable & Wireless and the MediaOne Group own One-2-One.
[SOURCE: Wall Street Journal, A20, AUTHOR: Gautam Naik]
(http://wsj.com/)

ECOMMERCE

CHICAGO-BASED NETWORK WANTS TO TRANSFORM INTO A STOCK EXCHANGE
Issue: Ecommerce
Chicago-based Archipelago announced yesterday that it will apply with the US
Securities and Exchange Commission by August 1 to convert its electronic
trading network into a self-regulated stock exchange. Electronic
communications networks (ECNs) like Archipelago electronically match stock
sellers and buyers and tout their ability to make trades more quickly and
cheaply than traditional stock exchanges by cutting out a middleman, Zajac
writes. 20% of trades on the Nasdaq stock market, for example, are executed
by ECNs. But systems like Archipelago have not been able to get their prices
published in national quote systems shared by stock exchanges: "It seems to
us that the only way to break through this barrier is to become an
exchange," said Archipelago CEO Gerald Putnam.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Andrew Zajac]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99072801
35,FF.html)

TELECOM SUBCOMMITTEE TO MARKUP BLILEY E-SIGN AND DATABASE BILLS
Issue: Legislation
From Media Advisory: Commerce Subcommittee on Telecommunications, Trade, and
Consumer Protections Chairman U.S. Rep. W.J. "Billy" Tauzin (R-LA) has
announced that his panel will meet Thursday, July 29, 1999, to markup two
electronic commerce bills authored by full Committee Chairman Tom Bliley
(R-VA). The Subcommittee will markup H.R. 1858, the Consumer and Investor
Access to Information Act of 1999, and H.R. 1714, The Electronic Signatures
in Global and National Commerce Act in room 2123 of the Rayburn House Office
Building, at 10:00 a.m. The Subcommittee will also consider the following
two bills this Thursday: H.R. 486, Community Broadcasters Protection Act of
1999; and the NTIA Reauthorization Act of 1999.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/eeae8466ba03a2158525677f0
04b4d11/210a4e4d2e1842da852567bb006e3663?OpenDocument)

POLITICS

TECHNOLOGY INDUSTRY LAGS BEHIND IN CAMPAIGN CONTRIBUTIONS
Issue: Politics
Although Presidential candidates engaged in high-profile courtships of the
technology industry, their efforts resulted in less than $1 million in
contributions in the first half of the year. Seven candidates received
about $832,000 from employees of technology companies compared with $9.2
million given by lawyers and lobbyists and $3.5 million from the real
estate industry. According to Holly Bailey, a researcher who conducted the
analysis for the Center for Responsive Politics in Washington, "We're
seeing politicians trying to ally themselves with the economy of the
future. With high-tech, this is new wealth. They're not used to currying
favor with Washington yet." The analysis covered the candidates who filed
electronically with the Federal Election Commission as well as unofficial
data from Governor George W. Bush.
[SOURCE: New York Times (CyberTimes), AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/07/cyber/articles/28campaign.html)

INDUSTRY SKEPTICISM CLOUDS AGENDA GORE IS PUSHING IN HIGH-TECH POLICY
Issue: Politics
"A better understanding of how technological developments change the options
available leads to less government regulation, not more." That's because the
government works with industry on new alternatives, such as environmentally
friendly cars, "to leapfrog all the heavy-handed regulations," says Vice
President Gore. "Al Gore represents a point of view that says there will be
excessive regulation, that the government can figure out all the answers,"
says Floyd Kvamme, a Silicon Valley venture capitalist who backs the
presidential bid of Texas Gov George W. Bush (R). "He's into technological
fixes," says Gene Kimmelman, co-director of the Washington office of
Consumers Union. "Gore has an extremely positive image of technology, almost
to a fault -- to forgetting about the human element that underlies
technology." "Technology sweeps aside traditions, patterns and institutions,
just like a flood or a tornado," said VP Gore. His technology initiatives
for the 2000 election: build a superfast version of the Internet; double the
$1.5 billion the government spends annually on computer research; identify
every human gene linked to cancer; deploy an army of online tutors to help
kids. His aides say they are working on initiatives to develop
next-generation auto fuels and new kinds of fuel-efficient homes.
[SOURCE: Wall Street Journal (p.1), AUTHOR: Bob Davis]
(http://interactive.wsj.com/articles/SB933113725299151569.htm)

--------------------------------------------------------------

ACCESS
No Free Lunches for PCs (SJM)

INTERNET
High-Stakes Internet Battle Erupts in San Francisco (WSJ)
Local Merchants Going Online Rely on Faith (WP)
Firms Work on Bait to Keep Users With Portal that Brings
Them to Net (ChiTrib)
A Planned Internet Yellow Pages Draws Federal Scrutiny (NYT)
In a Spin Over the Web (WP)

BROADCASTING
Stations of the Cross (WP)
CBS Says It's the Major Network for Minority Casting (WP)
Can ABC Become America's Broadcasting Company? (NYT)
Times Co. to Sell Services at Digital TV Center (NYT)

MERGERS/TELEPHONY
Adverse SBC Testimony Restored (ChiTrib)
Cable & Wireless Close to Selling Residential Line in
U.K. to NTL (WSJ)
Compressed Data: Large Phone Contract From South Africa (NYT)

JOBS
High-Technology Sector Unmoved by Labor's Song (NYT)

PHILANTHROPY
For Z

DIGITAL DIVIDE
Computer Void Limits Working Poor, Study Finds (WP)

MEDIA & SOCIETY
Let's Not Get Too Wired (NYT)
Public Appeal Targets Changes By Hollywood (USA)
FTC Urges Ban on TV, Radio Cigar Ads (WSJ)

BROADBAND
Speedier Internet Access On Tap (ChiTrib)

INTERNET
Masters of Internet Domains Go To War (WP)
Domain Name System Privatization: Is ICANN Out of Control? (House)
Instant Message System To Debut (SJM)
Nun Opens Vatican Doors to the Net (NYT)

ARTS
Art As A Game, and Games As Art (CyberTimes)

TELEPHONY/MERGERS
Cincinnati to Acquire IXC for 2.2 Billion (WSJ)
Speech: The Geology of Telecommunications (FCC)

DIGITAL DIVIDE

COMPUTER VOID LIMITS WORKING POOR, STUDY FINDS
Issue: Digital Divide
A survey by Rutgers University says only 39% of the working poor and unemployed
people they surveyed had access to the Internet, compared with 76% of other
employees. "It's another example of what's been called the 'digital divide' in
America," said Carl E. Van Horn, a professor of public policy at Rutgers.
"People without access to the Internet are cut off from many opportunities in
today's economy." He said companies are being short-sighted if they only look
for workers via electronic communications systems and should reach out to them
instead through church or community groups. The study, which surveyed 500
workers by phone who were defined as among the working poor, found that the
average working-poor individual is a middle-aged single white woman who holds a
full-time job but earns less than $25,000 a year. Most have dependent children.
[SOURCE: Washington Post (E1), AUTHOR: Kirstin Downey Drimsley]
(www.washingtonpost.com)

MEDIA & SOCIETY

LET'S NOT GET TOO WIRED
Issue: Digital Divide
[Op-Ed] In response to the Commerce Department's recent report that
African-American and Hispanic households are much less likely to have
access to the Internet, Mr. Tenner questions whether Internet connections
are really all that important. He suggests that there would be many
downsides if Internet connections became as ubiquitous as telephones.
Tenner believes that universal Internet access would result in a
deterioration of cultural life, a surge in computer prices and harm to the
environment. He argues that the Internet is a better, cheaper place for
some, when there are not personal connections for all.
[SOURCE: New York Times (A21), AUTHOR: Edward Tenner (visiting researcher
in the geosciences department at Princeton)]
(http://www.nytimes.com/yr/mo/day/oped/22tenn.html)

PUBLIC APPEAL TARGETS CHANGES BY HOLLYWOOD
Issue: Media & Society
Tuesday, lawmakers announced a campaign focusing on putting pressure on
Hollywood to clean up its act. Empower America's Bill Bennett along with
Senators John McCain (R-AZ), Joe Lieberman (D-CT), Sam Brownback, (R-KS), Kay
Bailey Hutchison (R-TX) and Kent Conrad (D-ND) met to announce the Appeal to
Hollywood Initiative. It is petition-based, so no legislation was announced. It
will be carried out through a site (www.media-appeal.org). Entertainers who
have signed on include Steve Allen, Naomi Judd, Carol Lawrence and Joan Van
Ark. Other people who have signed on are former Presidents Gerald Ford and
Jimmy Carter, as well as Colin Powell, Norman Schwarzkopf and former-NY
governor Mario Cuomo. This campaign calls for people to call, e-mail or write
Hollywood executives to reduce the violence and sexual content.
[SOURCE: USA Today (1D), AUTHOR: Ann Oldenburg]
(http://usatoday.com/)
See Also:
PROMINENT SIGNERS URGE MEDIA TO CURB SEX, VIOLENCE
[SOURCE: Chicago Tribune (Sec 1, p.20), AUTHOR: Associated Press]
(http://chicagotribune.com/news/printedition/article/0,2669,SAV-9907220414,F
F.html)

FTC URGES BAN ON TV, RADIO CIGAR ADS
Issue: Advertising
The Federal Trade Commission is urging Congress to put health warnings on cigar
labels and print ads as well as completely banning their radio and television
advertising. The FTC is relying on the 1998 National Cancer Institution Report,
which said cigar smoking has increased by 50% since 1993 and that use is
growing among teenagers. The ban would have little impact on their radio and
television advertising because in 1997 the top five cigar companies only spent
325,000 on both. Norman Sharp, a Washington Lobbyist for the Cigar Association
of America, said that the possible ban is insignificant and noted that
there are already warning labels on cigars because of a California Court
ruling.
[SOURCE: Wall Street Journal, A4, AUTHOR: Bruce Ingersoll]
(http://wsj.com/)

BROADBAND

SPEEDIER INTERNET ACCESS ON TAP
Issue: Broadband
After testing and talking about DSL service for 3 years, Midwest phone giant
Ameritech will finally make high-speed Internet access available to
residential customers on a mass scale. In an alliance announced Wednesday,
America Online will aggressively market DSL to its customers when Ameritech
makes the service available. Ameritech will wire AOL customers' homes with
DSL and grant AOL wholesale rates. Ameritech is facing competition from
AT&T's cable arm -- TCI -- and, as part of SBC/Ameritech's efforts to win
regulatory approval for their merger, the companies have ben promising to
make DSL services widely available especially in low income and rural areas.
"We're basically in a land grab right now," said Dean Tucker, vice president
for marketing at Telocity Inc., a DSL Internet service provider that
launched service for Chicago residential customers two weeks ago. "The cable
companies are beginning to sign up customers, and so are the DSL providers.
Once you sign someone up, that customer is unlikely to change later, because
of the costs and hassles. Any large phone company that fails to recognize
this could see lots of its revenues evaporate." Over phone lines, Ameritech
will offer bundle packages will AOL or its own Internet service,
Ameritech.net. Over Ameritech's cable systems, it will over both AOL and
Ameritech.net as a way to tweak AT&T which only offers its own Internet
service, AtHome, over its cable systems.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99072201
12,FF.html)
See Also:
AOL TO GET HIGH-SPEED LINES FROM AMERITECH
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/086118.htm)

INTERNET

MASTERS OF INTERNET DOMAINS GO TO WAR
Internet: Internet
Once Internet activists and businesses were content to see that ICANN was
formed to assumed technical control of the global computer network and the
break up of Network Solution's monopoly in registering electronic addresses.
Now they believe ICANN is stealthily morphing into a regulatory agency for the
traditionally unregulated Internet. Network Solutions is leading the charge
and will not participate in ICANN's plans for competition. This battle has
the potential to disrupt the flow of information and commerce on the
Internet. Jim Rutt, Network Solutions' chief executive says, "[ICANN] is not
really necessary." Esther Dyson, head of ICANN counters that Networks
Solution's opposition isn't based on principle but out of a desire to
"prolong its monopoly." Networks
Solutions says that if its stripped of its current tasks there would be
"serious security and stability issues" for the Internet and that ICANN and
the government could end up "disconnecting 5 million Internet addresses."
Dyson said, "I think we're all interested in making this work." Industry and
government sources both say the negotiations have not progressed significantly
in recent weeks. One source said, "The process is not moving forward the way
it should be."
[SOURCE: Washington Post (E1), AUTHOR: Rajiv Chandrasekaran]
(www.washingtonpost.com)

DOMAIN NAME SYSTEM PRIVATIZATION: IS ICANN OUT OF CONTROL?
Issue: Internet
A live Webcast of today's oversight hearing is available at the URL below.
Also see: The Commerce Department and Network Solutions have agreed to
extend the shared registration test bed until August 6
(http://www.ntia.doc.gov/ntiahome/press/07161999.htm).
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/eeae8466ba03a2158525677f0
04b4d11/d9a7cdb563866c02852567af005ed58b?OpenDocument)

INSTANT MESSAGE SYSTEM TO DEBUT
Issue: Internet
Today Microsoft will unveil new software that competes with AOL's Internet
instant messaging program. Microsoft's Messenger Service will allow users to
exchange messages through AOL's Instant Messenger (AIM), and to communicate
with users of Microsoft's Hotmail free e-mail service. But today's announcement
marks the first time a major company such as Microsoft has launched a product
that is in direct competition with AOL. Some analysts believe instant
messaging has an important future because its possibility of being integrated
with other forms of communication -- with telephone voicemail, for example, or
with messages to cell phones and pagers. "I think instant messaging is the
future of all communications," said Jerry Michalski, president of Sociate, a
San Francisco technology consultancy. "It offers a sense of presence that no
other software, and not even the phone system, can offer."
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/indepth/docs/messag072299.htm)

NUN OPENS VATICAN DOORS TO THE NET
Issue: Internet
While people may not think of the Vatican as quick to adapt to social and
technological advances, one American nun has begun to prepare the Catholic
Church for the digital age. Sister Judith Zoebelein was put in charge of
developing a Web site for the Vatican. The site received over 300,000 visits in
the first 48 hours after its debut on Christmas Day of 1995. Some people may
have been surprised by the Church's decision to establish a Web presence,
Vatican officials explain that it is inline w/the mission of the Catholic
Church. Archbishop Claudio Celli a senior official overseeing the Web site,
said: "Today, technical means of communication offer broad possibilities to
disseminate knowledge at a global level. The Holy See considers it a challenge
to be present in this context." Sister Judith say that when "People ask, 'Why
is a sister doing this?' " she explains: "Well, technology has to have a
spiritual dimension."
[SOURCE: New York Times (E1), AUTHOR: John Tagiabue]
(http://www.nytimes.com/library/tech/99/07/circuits/articles/22nunn.html)

ARTS

ART AS A GAME, AND GAMES AS ART
Issue: Arts/Games
The market for "interactive entertainment software" is growing and, by some
estimates, may eventually generate more revenue than the domestic film industry.
Digital artists, on the one hand, are looking to add their voices to the debate
over the genre's aesthetic merits and cultural impact while exploring the
artistic possibilities of games. This week two artist-driven Web sites
explore the debate over games as art, "Re:Play" and "Cracking the Maze."
Eric Zimmerman, director of "Re:Play" says games can teach artists about
digital interaction; anything from representation and identity to
complex systems and artificial life. The game industry, however, can also
learn from artists. Natalie Bookchiln, a Los Angeles artist says, "Games are
still the most successful example of hooking a user into an interactive
narrative." Will games remain bubble-gum pop culture like comic books or
will it take the route of pop music, which is a diverse and dynamic cultural
form where experimentation feeds back to the center and keeps the medium
exciting? Digital artists will have to answer that one for themselves.
[SOURCE: New York Times (CyberTimes), AUTHOR: Matthew Mirapaul]
(http://www.nytimes.com/library/tech/99/07/cyber/artsatlarge/22artsatlarge.h
tml)

TELEPHONY/MERGERS

CINCINNATI TO ACQUIRE IXC FOR 2.2 BILLION
Issue: Merger
Cincinnati Bell agreed to buy IXC Communications, a Texas long-distance
company. The deal is valued at $2.2 billion and Cincinnati Bell will assume $1
billion dollars of IXC's debt. IXC is building a nationwide fiber optic network
competing with Qwest Communications International. Cincinnati Bell is a phone
company specifically in the Cincinnati market, but it is not a Bell operating
company. What Cincinnati has acquired is an 18,000-mile national network for
voice and data transmission to expand its services into business.
[SOURCE: Wall Street Journal, B5, AUTHOR: Leslie Cauley]
(http://wsj.com/)
See Also:
TELECOMMUNICATIONS DEAL CARRIES PLENTY OF INTRIGUE
[SOURCE: New York Times (C2), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/yr/mo/day/news/financial/ixc-bell-marketplace.html)

SPEECH: THE GEOLOGY OF TELECOMMUNICATIONS
Issue: Phone Regulation
Commissioner Susan Ness Remarks before the Communications Committee National
Association of Regulatory Utility Commissioners (NARUC), San Francisco.
Commissioner Ness speaks to the partnership between state and federal
telecommunications regulators -- especially concerning local competition and
unbundled network elements (UNEs) [sure, you know the lingo].
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Ness/spsn910.html)

--------------------------------------------------------------

INTERNET
tudy Says Most Children's Web Sites Are Lax On Privacy (Cybertimes)
Capital Dispatch: Internet Board To Open Meetings And Drop Fee (NYT)
The Info Culture: You've Got Mail (Trib)
Hands-Off Unregulation (FCC)

BROADBAND
Battle Over High-Speed Net Access Centers In L.A. (Latimes)

LIBRARIES
At Library, Computers Compete With Books For Pupils' Time (NYT)

MERGERS
Neat Package Hides Issues In Phone Deal (NYT)
Vodafone To Buy Commnet Cellular For $764 Million (WSJ)

BROADCASTING
Your Set Has Lost Its Color (USA)
Less TV In On-Line Homes (USA)
Channel 11 Tries To Steer Clear Of Donor List Furor (Trib)
Public Broadcasting Stupidity (WP)

TELEPHONY
Sprint Offers 5 Cents-A-Minute Calls At Night (Trib)

INTERNET

STUDY SAYS MOST CHILDREN'S WEB SITES ARE LAX ON PRIVACY
Issue: Privacy
The Center for Media Education (CME), a Washington-based media advocacy group,
has just released a study revealing that only one-quarter of children's Web
sites post privacy policies and only 6% ask for parental permission before kids
send in personal information. Kathryn Montgomery, president of CME said that
the studies "findings underscore the urgent need for clear and effective rules
to protect children's privacy online. Parents must be involved when personal
information is collected from their children." The study's release coincides
with Federal Trade Commission workshop where companies and privacy advocates
are discussing ways to carry out the Federal Children's Onlne Privacy
Protection Act that was passed by congress last year. The Act, which isn't
scheduled to take effect until next April, will require all Web sites to get
parental permission before gathering information from children under 13. The
workshop is intended to help the FTC develop effective rules to carry out the
Act. Evan Hendricks, editor of Privacy Times, is worried that business
interests will have too much influence in determining privacy policies. "Every
time the FTC holds a workshop or a hearing, [the industry] trots out some dog
and pony show or pulls some rabbit out of the hat," Hendricks said. "All these
things have fizzled and they are just ways of buying time so industry can
continue to exploit information without informed consent."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/07/cyber/articles/20privacy.html)
See also:
KIDS' ONLINE PRIVACY AT RISK
[SOURCE: San Jose Mercury News, AUTHOR: Debrorah Kong]
(http://www.mercurycenter.com/svtech/news/indepth/docs/priv072099.htm)

CAPITAL DISPATCH: INTERNET BOARD TO OPEN MEETINGS AND DROP FEE
Issue: Internet
Yesterday, three days before the House Commerce Committee will hold a hearing
to investigate the dealings of ICANN, (the Internet Corporation for Assigned
Names and Numbers), its interim Chairman, Ester Dyson, sent a letter to the
Commerce Department. The letter said ICANN will hold its next board meeting in
public and will temporally drop the $1 tax on domain name registrations.
(Hmmmmm, I wonder if there is a correlation with the timing on this one.) Dyson
says ICANN's board does not "see a global consensus demanding that ICANN hold
all its meetings in public." She is also assigning a task force to find
alternative funding for ICANN cost recovery. House Commerce Committee is
investigating ICANN for not opening their meetings to the public, proposing a
$1 tax to finance their budget and attempting to overregulating companies.
[SOURCE: New York Times, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/07/cyber/capital/20capital.html)

THE INFO CULTURE: YOU'VE GOT MAIL
Issue: E-mail
Is e-mail a unique and unprecedented form of communication or just the
latest way to chew the fat? Keller asks. According to author John Durham
Peters, communication is "one of the characteristic concepts of the
twentieth century," influencing our "reflections on democracy, love and our
changing times." E-mail seems distinctive because it hovers somewhere
between print and speech: "It's a paper genre, but it feels so much like
talking," said Kitty O. Locker, author of the fifth edition of _Business and
Administration Communication_, a college textbook used by thousands of
students each year. "Receivers tend to treat e-mail like a paper document.
But senders tend to treat it informally and carelessly." E-mail can sound
brusque even when you don't mean it that way," Ms. Locker said. "And it
feels urgent, even if it isn't. Because we send e-mails so fast, people
expect an instant response." Recent research found that many writers would
prefer to deliver bad news via email rather than in person [we're going to
start charging for this service]. E-mail "makes people more honest because
their inhibitions are lower," said a member of the research team, which
makes e-mail sound like a cocktail in a dimly lit bar.
[SOURCE: Chicago Tribune (Sec 5, p.3), AUTHOR: Julia Keller]
(http://chicagotribune.com/leisure/tempo/printedition/article/0,2669,SAV-990
7200107,FF.html)

HANDS-OFF UNREGULATION
Issue: Internet Regulation
News Release: The FCC Office of Plans and Policy (OPP) 7/19 released the latest
in its OPP Working Paper Series, entitled "The FCC and the
Unregulation of the Internet." Authored by Jason Oxman, Counsel for Advanced
Communications in the Office of Plans and Policy, the paper examines the FCC's
thirty-year history of not regulating the data services market, and how that
tradition of "unregulation" was a crucial factor in the successful growth of
the Internet. OPP periodically issues working papers on emerging issues in
communications; these papers represent the individual views of their authors
and are not official statements by the FCC or any FCC commissioner. Since
opening an inquiry into the interrelationship of the telecommunications network
and computer-based services in 1966, the FCC has taken numerous affirmative
steps to ensure that the marketplace, not regulation, allowed innovation and
experimentation to flourish. As a result, a vast majority of Americans have
inexpensive and reliable access to the Internet. The typical American family
gains an incredible amount of value from its $20 per month Internet account,
including such services as investing, travel planning, homework research, email
communications, and shopping, among others. The Internet Economy generated over
$300 billion in revenue in the U.S. last year and is rapidly changing the way
America does business. Nearly one third of the nation's households are regular
Internet users. A summary of the working paper is attached. The full text is
available on the FCC web site at www.fcc.gov. Office of Plans and Policy
contact: Jason Oxman, 202-418-1078, (joxman( at )fcc.gov).
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/OPP/News_Releases/1999/nrop9004.html)

BROADBAND

BATTLE OVER HIGH-SPEED NET ACCESS CENTERS IN L.A.
Issue: Broadband
"This is a defining moment for the future of the Internet, but when this
amount of money is being spent, the underlying issues get obscured," said
Andrew Schwartzmann of the Media Access Project, a Washington consumer advocacy
group. Who will stand to rake in the billions of dollars that consumers are
likely to spend for lightning-fast access to this
world-changing communications medium? A lobbying war with AT&T on one side and
America Online and GTE on the other will decide. LA has turned into Ground Zero
in the open access war. The City Council there is expected to hold its next
public hearing on Tuesday and move toward a vote this fall. Los Angeles is at
the center of this national debate because it is perhaps the largest city whose
political leaders remain undecided on open access.
[SOURCE: Los Angeles Times 7/19, AUTHOR: Sallie Hofmeister and Jim Newton]
(latimes.com)

LIBRARIES

AT LIBRARY, COMPUTERS COMPETE WITH BOOKS FOR PUPILS' TIME
Issue: EdTech
When Shawn Hunt took her third grade class on a field trip to a nearby branch
of the Brooklyn Public Library, she quickly discovered that the lure of books
pales in comparison to the draw of computers. Richard Suico, a librarian on
duty, admits that computers are a big attraction to the kids, many of whom
don't have any at home. "They come in for the computers, but we hope to
supplement it with books," he said. Mrs. Hunt was glad that kids enjoyed the
field trip, but wished they could have been more focused on reading. "They
should be able to see that you can do other things in the library besides
playing on the computer."
[SOURCE: New York Times (A18), AUTHOR: Randal C. Archibold]
(http://www.nytimes.com/library/national/regional/072099library-trip-edu....)

MERGERS

NEAT PACKAGE HIDES ISSUES IN PHONE DEAL
Issue: Mergers
As the dust starts to settle in the telecommunication's industries latest
merger battle, there are still many questions that need to be answered as US
West, the smallest of the regional bells, and Qwest, the long distance upstart,
begin to combine operations. The companies are eager to propel themselves to
the level of the global telecommunication's giants like AT&T and MCI/Worldcom,
but there are many barriers for them to overcome. While one of the driving
forces behind the deal was the goal of offering integrated local and
long-distance service to customers, US West is still a few years away from
gaining an FCC ok to enter that business. Also, in order to obtain regulatory
approval for the deal, Qwest will likely have to sell off its long-distance
business in all of US West's territory.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/07/biztech/articles/20qwest-uswest.h
tml)

VODAFONE TO BUY COMMNET CELLULAR FOR $764 MILLION
Issue: Merger
Vodafone/AirTouch was formed when the Vodafone Group purchased AirTouch
Communications of San Francisco a few weeks ago. Now Vodafone/AirTouch has
operations in 24 countries with more than 28 million cellular customers.
Vodafone/AirTouch has also just acquired CommNet Cellular, which serves
Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming, Idaho, Iowa and
New Mexico. They have approximately 360,000 customers. Vodafone/AirTouch paid
$764 million and will assume $600 of CommNet's debt. This deal is expected to
be good for Vodafone/AirTouch who had been using networks they did not own and
paying huge roaming fees that were passed onto their customers. The CommNet
deal will alleviate that customer burden by lowering Vodafone/AirTouch's
operating costs in those markets.
[SOURCE: Wall Street Journal, B7, AUTHOR: Gautam Naik]
(http://wsj.com/)

BROADCASTING

YOUR SET HAS LOST ITS COLOR
Issue: Television
Network television is quickly changing its fall line-up to add some minority
characters. This is happening at a time of intense scrutiny by the NAACP.
Though blacks account for only 12% of the population, they watch 40% more
television than whites. Yet, the number of shows with minority characters has
dwindled over the past few years. "I think its appalling," says Blair
Underwood, star of CBS' new show City of Angels due out in January. The actor
blames a backlash against affirmative action: "There's a sense that 'we've done
enough for, quote, those people." NBC currently has the lowest percentage of
black viewers and a nearly all-white lineup of shows. Fox has no black leads in
its seven pilots for the season. Asians and Hispanics account for 3% and 8% of
U.S. TV household respectively, but are largely absent from the new fall season
as well. TV wasn't always so white as shows like Sanford and Son and The
Jeffersons paved the way for shows like the Cosby Show and A Different World.
These shows were huge successes and proved that viewers could relate to
universal themes of family, regardless of race.
[SOURCE: USA Today (B1), AUTHOR: David Lieberman]
(http://usatoday.com/)

LESS TV IN ON-LINE HOMES
Issue: Television/Internet
Homes hooked up to the Internet watch an average of 13% less television a day
than unconnected homes. This finding comes from a recent survey conducted by
Nielsen Media Research, commissioned by AOL. It also found that the biggest
movement away from television is after school and work, from 4:30 to 6pm.
During that time viewers watched 17% less television. During prime time (8 to
11pm) viewership in connected homes was only lower than unconnected homes by
6%.
[SOURCE: USA Today (B1), AUTHOR: David Lieberman]
(http://usatoday.com/)

CHANNEL 11 TRIES TO STEER CLEAR OF DONOR LIST FUROR
Issue: Public Broadcasting
Oh, don't mind us here in Chicago; no political controversy here, if you
please. Chicago's largest public broadcaster, WTTW-Channel 11, did not share
its donor list with the Democratic party. It has purchased names from the
Democratic Party and tried to do the same with Republicans, but the GOP would
not sell names. "We don't share our names with partisan political
organizations, only bipartisan," said station spokesperson Joanie Bayhack. "Our
internal records and records of our brokers say we never gave names to
political parties." The furor over a few stations exchanging names with the
Democratic Party has put public broadcasting funding at risk. "This puts a
stain on the political process because it implies a cozy relationship between
those who receive federal funding and those who approve the funding," said Ken
Johnson, press secretary to Rep. Billy Tauzin (R-LA), chairman of the
Telecommunications Subcommittee of the House Commerce Committee. "Public
broadcasting has shot itself in the foot." The Subcommittee will hold a hearing
on public broadcasting funding today. [See
(http://www.house.gov/commerce/schedule.htm); hear it at
(http://comnotes.house.gov/cchear/hearings106.nsf/eeae8466ba03a2158525677f0
04b4d11/b851d22782eade84852567af005aaada?OpenDocument)]
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-9907200
337,FF.html)

PUBLIC BROADCASTING STUPIDITY
Issue: Broadcasting
[Op-Ed] An editorial by the Washington Post calls the list-sharing between
public stations and politicians stupid. About three-dozen stations have used
"list brokers" whose business is helping nonprofits swap donor lists and more
are set to emerge, it says, most recently with the Democratic National
Committee. Fortunately, the leaders of public broadcasting say they will work
with Congress so that it doesn't continue because they understand their funding
could be in jeopardy. According to a spokesman for Rep. Billy Tauzin, "It
undermines the faith in public broadcasting," the author notes. He applauds
those executives who have prohibited the exchange or "rental" of donor lists
with anyone. Even though stations may try to show they also shared lists with
Republicans, "that won't reassure us much