September 1999

Communications-related Headlines for 9/30/99

DIGITAL DIVIDE
For the People, by the Computer (NYT)
Gateway Marketing Effort Has a Latin American Pitch (WSJ)
Hearing: Schools and Libraries Internet Access Act (House)

OWNERSHIP
ExciteAtHome Up On AOL Deal Rumors, But AT&T Denies (SJM)
Big News -- But Fewer Owners (ChiTrib)

TELEPHONY
Now Found in Bell Atlantic's Corner: New York Regulators (NYT)
Rules that Will Give People with Disabilities More
Access to Telecommunications (FCC)
If the Phone Had a Cord, You Could Strangle the User (NYT)

BROADCAST
Low Power TV Stations (FCC)

DIGITAL DIVIDE

FOR THE PEOPLE, BY THE COMPUTER
Issue: Access to Government/Digital Divide
Advances in information technology are enabling citizens across the country
to participate in government from the comfort of their very own homes. NYC
Link, the web site for New York City government
(www.ci.nyc.ny.us/home.html), for example, offers information about
services and events, and allows people to get government forms, register
complaints or communicate with officials via e-mail. "As the Internet
expands, we are cutting our bottom-line expenses, and that's a huge
advantage to your taxpayer," said Kyle Tager, Boston's director of online
services. "Any time a person doesn't have to pick up a phone and bother a
city employee, it makes it easier for everyone." In many communities, the
goal of electronic government is beyond just providing information to
enabling residents to directly interact with their local governments. There
are, however, concerns about making such services accessible to as many
people as possible. As more emphasis is placed on electronic government,
some advocates fear that two tiers of service will emerge, one for people
with Net access and the other for the rest of a city's residents. "Not
everyone has access to the Internet," said Dale Bowen, the director of
online
services at Public Technology. "So how do you adjust for that?" Bowen's
group recommends that computers be provided in public libraries and that
electronic kiosks be installed in government buildings. New York, along with
several other cities, has followed this advice, making kiosks available in
all five borough halls.
[SOURCE: New York Times (E1), AUTHOR: David Herszenhorn]
(http://www.nytimes.com/library/tech/99/09/circuits/articles/30govt.html)

GATEWAY MARKETING EFFORT HAS A LATIN AMERICAN PITCH
Issue: Access/Minorities
Tomorrow, Gateway is expected to launch the PC and Internet industry's
largest ethnic-marketing effort in the U.S. to date. The advertising
campaign involves Spanish-language PCs, software and Internet services. The
campaign will start in Miami and Phoenix and expand to each of the top 10
U.S. cities with substantial Hispanic populations. Gateway is launching its
campaign as a new study finds Hispanics second among U.S. ethnic groups,
behind Asian-Americans, in the percentage with access to the Internet. The
Latin pitch also comes as new Spanish-language Internet portals are
competing with Yahoo! and AOL. "As we looked at this market and all the
products and services we offer, it became a very significant market for us,"
says Gateway senior vice president R. Todd Bradley. He estimates that PC
purchases by Hispanics next year will be between 1.5 million and two million
machines -- equivalent to the college-student market. Bradley said, "The
appeal in this market is no different from our mainstream market. Hispanics
want to educate their kids, want quality products that are well supported
and available in their language." The company says it expects to reach the
bulk of the nation's 32.4 million Hispanics through its efforts.
[SOURCE: Wall Street Journal (B10), AUTHOR: Gary McWilliams]
(http://interactive.wsj.com/articles/SB938637486283307530.htm)

HEARING: SCHOOLS AND LIBRARIES INTERNET ACCESS ACT
Issue: Erate/Universal Service
Thursday, September 30, 1999 at 10:00 a.m. in 2322 Rayburn House Office
Building
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on H.R. 1746, Schools and Libraries Internet Access Act.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/schedule.htm)

OWNERSHIP

EXCITEATHOME UP ON AOL DEAL RUMORS, BUT AT&T DENIES
Issue: Merger
Rumors spread on Wall Street Wednesday that AT&T Corporation was in talks to
sell its stake in ExciteAtHome Corporation to America Online Incorporated.
AT&T owns roughly one-third of the stock of ExciteAtHome. Leo Hindery,
president and chief executive officer of AT&T broadband and Internet
services, denied that the company is in talks to sell its stake in
ExciteAtHome.
The stock of ExciteAtHome rose 13 percent Wednesday as 35 million shares
changed
hands -- about 10 times its average daily volume on the Nasdaq
stock market. ExciteAtHome declined to comment on the stock move. America
Online has sought out and failed to reach a deal with AT&T and other major
U.S. cable television operators that would allow the nation's largest
Internet service provider to offer high-speed Internet links to consumers
via cable networks. In August, AT&T sought to dampen speculation it was in
talks with America Online about a deal to give AOL access to AT&T's U.S.
high-speed cable television Internet access services. AT&T said last month
that such talks were no longer in progress.
[SOURCE: San Jose Mercury News, AUTHOR: Eric Auchard]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/907846l.htm
)

BIG NEWS -- BUT FEWER OWNERS
Issue: Ownership/Newspapers
A look at the White Castle approach to newspaper ownership: companies that
buy mastheads by the bag. Liberty Group Publishing -- based in scenic
Northbrook, IL -- owns more than 300 newspapers and all were acquired in the
last two years. In a north-south belt from Minnesota to Louisiana, Liberty
owns 225 community daily, weekly and shopper newspapers. Like growing armies
on the board game "Risk," Jones writes, these investor-backed newspaper
companies are buying clusters of daily and weekly newspapers and staking
their claims for regional advertising dominance. "You'll see statewide
clusters soon, with one company owning half the newspapers in a given
state," said Owen Van Essen, president of Dirks, Van Essen & Associates, a
Santa Fe newspaper broker. At the current rate, Dirks & Van Essen recently
forecast, half of U.S. daily newspaper circulation will be part of a cluster
in 15 years. Of the 1,489 daily newspapers in the nation, 85 percent have
circulations under 50,000. The weekly newspaper realm is even larger: There
are now 6,642 paid and free weeklies, according to records compiled by
industry magazine Editor & Publisher. The consolidation helps advertisers
reach geographical audiences, but what do consumers get? "The failing of
daily newspapers has been that they've become boring, and the same thing is
happening to weeklies as they consolidate," said publisher Dan Haley.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99093002
54,FF.html)

TELEPHONY

NOW FOUND IN BELL ATLANTIC'S CORNER: NEW YORK REGULATORS
Issue: Telephony/Competition
Just hours after Bell Atlantic submitted an application to the Federal
Communications Commission to sell long-distance communications services to
consumers and businesses in New York State, chairwoman of the New York
Public Service Commission issued an encouraging statement. "I am pleased
that Bell Atlantic's progress in meeting the terms of the 271 checklist has
reached the point of a filing with the F.C.C.," Maureen O. Helmer's
statement read, referring to the section of the Telecommunications Act of
1996 that outlines the steps a Bell company must take before entering the
long-distance market. While there was no formal endorsement of Bell
Atlantic's long-distance aspiration, experts feel that Ms. Helmer's move
was significant because the F.C.C. is expected to follow the guidance of
the New York regulators. The Commission has not always been convinced of
the rigor and independence of the regulators in other states, but appears
to have much greater faith in the New York Commission. "The dedication and
expertise displayed by New York's Public Service Commission and its staff
are truly impressive," said FCC Chairman William E. Kennard yesterday.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/yr/mo/day/news/financial/phone-bellatlantic.html)

RULES THAT WILL GIVE PEOPLE WITH DISABILITIES MORE ACCESS TO
TELECOMMUNICATIONS
Issue: Disabilities
The FCC released the rules and policies
(http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99181.wp) that
will require manufacturers of telecommunications equipment and providers of
telecommunications services to ensure that such equipment and services are
accessible to and useable by persons with disabilities, if readily
achievable. These rules, which were adopted by the Commission July 15, 1999,
implement Section 255 of the Telecommunications Act of 1996 and Section
251(a)(2) of the Communications Act of 1934. These rules will give people
with disabilities access to a broad range of products and services such as
telephones, cell phones, pagers, call-waiting, and operator services, that
they cannot use today. These rules represent the most significant
opportunity for people with disabilities since the passage of the Americans
with Disabilities Act in 1990. The rules released today require
manufacturers and service providers to design telecommunications equipment
and services with the needs of people with disabilities in mind. The FCC
notes that access to telecommunications can bring independence. The rules
are available on the FCC's web site at: www.fcc.gov/dtf. For more info
contact: Ellen Blackler at (202) 418-0491, TTY 202-418-0485.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9075.html)

IF THE PHONE HAD A CORD, YOU COULD STRANGLE THE USER
Issue: Lifestyles!
The title says it all, doesn't it? A cell phone is "a pacifier for adults,"
said Maira Kalman, the president of M&Co, a Manhattan product and graphic
design group. "It makes you feel connected, that you're not alone in this
planet." But people are taking it a little too far -- taking calls during
plays, movies, and wedding receptions. So, anti-cell-phoners are striking
back: prohibiting cell phones in museums and checking phones -- like
garments -- at restaurants ("If you get a call, we'll call you.") Proving
once again that all things wired (and wireless) are not best, the New York
Times invited six graphic design companies to design the universal sign for
"Stop cell phone talk." The witty signs are included in the print edition of
the Times, but not at the URL below. So, take a break today...head over to
the library...look at page B11 -- but turn the phone off when you get there,
OK?
[SOURCE: New York Times (B11), AUTHOR: Elaine Louie]
(http://www.nytimes.com/library/home/093099cell-phones.html)

BROADCAST

LOW POWER TV STATIONS
Issue: Broadcast Television
In a Notice of Proposed Rulemaking (NPRM) released yesterday, the FCC
proposes creating a new "Class A" status for low-power television stations
(LPTV) -- offering interference protection "to the extent possible." NPRM
asks series of questions about new protections for LPTV and conditions that
stations must meet to qualify for them. Among questions asked are: 1)
Whether stations should have to provide minimum amount of local programming
(such as 3-7 hours per week) and certify compliance with other FCC rules to
qualify. 2) Whether there are other qualification criteria that don't
involve content regulation. 3) Whether there should be one-year window for
Class A applications. 4) Whether licensees must meet definition of small
businesses. 5) Whether local ownership limits should apply. 6) How to ensure
LPTV stations don't interfere with DTV stations, and whether Class A should
be protected against interference from new DTVs and analog stations. 7)
Whether Class A stations must protect other LPTV stations and translators
from interference. 8) Whether Class A will boost minority, female and small
business ownership, as well as LPTV itself by creating greater stability. 9)
Whether Class A should be limited to Ch. 2-51. It is particularly critical
to
protect DTV transition and there may be practical limits on how many LPTV
stations could have Class A status. Comment schedule has not been set yet.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/Notices/1999/fcc99257.txt)

--------------------------------------------------------------
Doesn't a month fly by when you're having fun (changing diapers, that is)?

Communications-related Headlines for 9/29/99

BROADCASTING
TV Gets Heat From DC (B&C)
Top of the News: Survey of TV News Directors (B&C)

TELEPHONY
A Regional Bell May Soon Offer Long Distance (NYT)

INTERNET
Deal Is Reached to Open Internet Registration (NYT)
Senate Data in the Microfilm Era (CyberTimes)
Newspaper Leader Calls For National Online Classified Effort (SJM)

TELEVISION
TV Notes: Networks Find Cause to Cheer (NYT)
As the 'Other World' Turns Brazilian TV Gets Pretty Odd (WSJ)

INFOTECH
Universities Adopt Computer Literacy Requirements (CyberTimes)
C.I.A. to Nurture Companies Dealing in High Technology (NYT)

BROADCASTING

TV GETS HEAT FROM DC
Issue: Television
A new study from the Center for Media and Public Affairs, a Washington-based
nonpartisan research organization, found that television viewers see a
violent scene every four minutes. The violence on TV shows, music videos and
movies
often carry no consequences, sending incorrect messages to children,
according to CMPA. The center also found that producers are not ranking
their programs
correctly, making it difficult for parents to properly regulate their
children's TV viewing. Of all the prime time television shows aired in 1998,
CBS'
Walker Texas Ranger was the most violent, with an average of 82 violent
scenes per
episode. On basic cable, the most violent show was TNT's LA Heat, with 46
violent scenes per episode. On premium cable, Oz was the most violent with
an average of 54 violent scenes. Additionally, five of the 10 most violent
shows aired during this period were in first-run syndication. The study
found more
violence in original network TV series than in original cable series,
although this was thought to stem from the fact that there are significantly
fewer
original series on cable. USA was rated the most violent cable network.
[SOURCE: Broadcasting & Cable (p.20), AUTHOR: Paige Albiniak]
(http://www.broadcastingcable.com/)

TOP OF THE NEWS: SURVEY OF TV NEWS DIRECTORS
Issue: Television
A survey of TV news executives found that 95% of 150 directors polled
had taken no steps to reduce the level of violence in the news casts
broadcast after the Columbine High School shooting raised the issue of
sensationalism in news. This finding suggests that none of the executives
sees the "if it bleeds it leads" criticism as applying to their media
outlet, or they find nothing wrong with this approach to journalism.
"It's not the TV's job to under-report crime to keep from shocking or
offending viewers...But trolling the satellite feeds for violence, or
giving it more airtime because of its power to shock and attract,
provides viewers with a false sense of insecurity by putting so many
violent acts, no matter how remote from the individual viewer, in
every living room, everywhere." The difference between lower crime
statistics that are being reported and the perception of violence in
society is the immediacy television brings to an issue. The survey showed
NBC as the strongest news operation and best newscast, according to
its own affiliates about a third of its competitors. It is suspected that
NBC benefits from being able to work with two other cable networks,
namely CNBC and MSNBC. CNN was ranked second. CBS was ranked last
among major news outlets.
[SOURCE: Broadcasting & Cable (p.102), AUTHOR: B&C Editorial Staff]
(http://www.broadcastingcable.com/)

TELEPHONY

A REGIONAL BELL MAY SOON OFFER LONG DISTANCE
Issue: Long Distance/Competition
Fifteen years after the breakup of AT&T, consumers may have once again have
a one-stop option for local and long distance phone service. Bell Atlantic,
the largest local telephone company, will soon ("We're on track for a filing
this week," said James Cullen, president and chief operating officer of Bell
Atlantic. ) ask the Federal Communications Commission for permission to
offer long distance service in New York State. Approval would make in the
first Baby Bell to enter the $80 billion long distance market. The FCC has
rejected five other attempts by Baby Bells to get into long distance. "I'd
put the chances above 50-50," said Michael Morrissey, vice president for
government affairs at AT&T, which stands to lose billions in revenue if the
Baby Bells broadly enter the long-distance market. "The other applications
had no real chance."
[SOURCE: New York Times (A1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/financial/092999bell-longdistance.html)

INTERNET

DEAL IS REACHED TO OPEN INTERNET REGISTRATION
Issue: Internet
Network Solutions and the US Dept of Commerce have agreed on a process to
open up the registration of Internet addresses to competition. Network
Solutions will be allowed to retain control of ".com", the crown jewel of
Internet domains and, in return, the company will provide ICANN with $1.25
million and will reduce the wholesale price it charges rivals for new
registrations. Network Solutions will also provide public access to the
database of Internet addresses while charging companies for bulk access to
the database. "It is a huge relief as well as a pleasure that we managed to
come to terms that everyone finds acceptable," said Esther Dyson, the
interim chairwoman of ICANN. "Everyone feels they gave a huge amount." Not
all at Network Solutions are happy: "The good news is that the deadlock has
been broken," said Richard Forman, president and chief executive of
Register.com, a New York company that was the first to compete with Network
Solutions. "Unfortunately, the current situation still promotes an unlevel
playing field. The Department of Commerce extended NSI's contract without
even considering any competing registrars to run the registry," he said. "In
addition, the registry will be charging registrars the still-inflated price
$12 per domain name and though NSI the registry and NSI the registrar are
technically two separate entities, the bottom line is that they both share
the same balance sheet."
[SOURCE: New York Times (C12), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/09/cyber/articles/29domain.html)
See Also:
COMMERCE OVERSIGHT EFFORTS LEAD TO DOMAIN NAME AGREEMENT
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/0eb75f97c571b3b8852567fa0065d535?OpenDocument)

SENATE DATA IN THE MICROFILM ERA
Issue: Access to Info/Campaign Finance
President Clinton is expected to sign a bill into law this week
requiring political action committees and candidates for the House of
Representatives to file reports electronically with the Federal Election
Commission starting in 2002 so information can be posted online within
a few hours of filing. But the Senate does not have that same requirement.
Senators, who file their records with the Secretary of the Senate, have a
convoluted disclosure system in which details about contributions to Senate
candidates do not reach the online public until about six weeks after the
reports are filed. Since the secretary's office does not require Senate
candidates to file in an electronic format, there is a long process where
people have to enter thousands of pages of data by hand, which takes 30 to
60 days -- so it is unlikely to get to the public before election time.
"There are no plans, at the moment, to have an electronic filing system,"
said Pam Gavin, superintendent of the Senate Office of Public Records. "I
think sometimes we get a bad rep, because a lot of people are interested in
campaign finance," she said. "But it's less important than making sure the
Senate floor runs or seeing that people get paid." Sheila Krumholz, research
director for the Center for Responsive Politics, said the Senate's handling
of campaign finance records reflects its "closed culture." "It begs the
question: what's the difference between the House and the Senate?" she said.
"Why should the Senate be precluded from these rules? There's really no
logical explanation."
[SOURCE: CyberTimes, (B10), AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/09/cyber/articles/29senate.html)

NEWSPAPER LEADER CALLS FOR NATIONAL ONLINE CLASSIFIED EFFORT
Issue: Newspapers/Advertising
The chairman of the Newspaper Association of America issued a call to all
newspaper owners and publishers in a speech at the National Press Club on
Tuesday. "Let us put our classified advertising online and build a national
classified marketplace," said William S. Morris II, chairman of Morris
Communications Group. As more and more newspapers are taking advantage of
online technology, Morris says it's time that they join forces to create a
national classified advertising service on the Internet. Despite the growth
of journalism on the Internet, Morris says he doesn't envision newspapers
becoming extinct. "I see nothing in the new technology -- nothing coming
out of Silicon Valley that eliminates the need for newspapers and certainly
for trained, responsible, ethical and aggressive journalists."
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/074977.htm)

TELEVISION

TV NOTES: NETWORKS FIND CAUSE TO CHEER
Issue: Television
Despite the continued drop in television viewership, network executives
have already declared the new television season a success. Viewing among
18-to-49-year-olds, to which most of the networks are so devoted, was down
by 6 percent from premiere week last year. For the major networks, who are
happy to see that the current decline is much less steep than it was last
year at this point, the numbers were cause for celebration. "You look at
those summer numbers," said Garth Ancier, the president of NBC
Entertainment, "and it's great to see people coming back."
[SOURCE: New York Times (B7), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/arts/tv-notes.html)

AS THE 'OTHER WORLD' TURNS BRAZILIAN TV GETS PRETTY ODD
Issue: International/Television
TV Globo has been the reining monarch of Brazilian television for more than
three decades. But with inflation on hold and increased consumer
purchasing power, the loyalty of this larger and more diverse Brazilian TV
audience is waning. Globo's empire is under assault by bikini-clad fashion
models wrestling for soap. Sistema Brasileiro de Televisao (SBT), Globo's
main rival, is home to a popular new show in which models climb one by one
into a big bathtub and grapple with a male guest for bars of soap. This
program, along with other outrageous SBT attractions, has caused Globo's
overall share of the national TV audience to tumble just over half, down
20% from only four years ago. Even more daunting for Global is a bill in
congress that would for the first time allow foreigners to hold minority
stakes in Brazil's broadcast media. "Acquiring a foreign partner will
shorten the amount of time it takes us to become the No. 1 network," says
Jose Roberto Maluf, vice president of SBT.
[SOURCE: Wall Street Journal (A1), AUTHOR: Matt Moffett]
(http://interactive.wsj.com/articles/SB938557811802582025.htm)

INFOTECH

UNIVERSITIES ADOPT COMPUTER LITERACY REQUIREMENTS
Issue: Ed-Tech
This year, the University of Texas at Arlington has adopted a policy that
requires students to demonstrate computer literacy as a condition of
graduation. Increasingly, colleges and universities are adopting computer
literacy requirements in an effort to better prepare their students for the
modern workplace. Other schools with computer literacy skill requirements
include Florida State University and Old Dominion. At the UT-- Arlington,
students must master five computer-related skills including spreadsheet
programs, word processing, the school's online library research services,
e-mail, and Internet-based research. Several years ago the Southern
Association of Colleges and Schools, the major regional accrediting
association for southern schools, decided to add the words "the basic use of
computers" to the list of skills that graduates of its approved institutions
must demonstrate. The Western Association of Schools and Colleges, The
regional accrediting group for California, Hawaii and other areas is
currently considering revising its standards to include an "information
literacy" mandate. Some education officials see these computer literacy
requirements as a temporary situation, since most student going to college
learn the basics in high school and elementary school.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/09/cyber/education/29education.html)

C.I.A. TO NURTURE COMPANIES DEALING IN HIGH TECHNOLOGY
Issue: InfoTech
The Central Intelligence Agency (CIA) has established a venture capital firm
to help high-tech companies as well as the government. The new nonprofit
venture will be called "In-Q-It", in reference to Major Boothroyd, a.k.a.
"Q", the master technologist whose basement laboratory develops advanced
gadgets for the fictional British super-agent. In-Q-It is being financed
with $28 million appropriated last year by Congress as part of the CIA's
budget. How In-Q-It uses of the $28 million remains classified.
Unlike in the cold war era, when the most advanced technologies came from
a handful of supercomputer companies, today, the most powerful technologies
are increasingly being developed first by consumer electronics companies
that have vast markets to finance new developments of powerful
systems and applications. In-Q-It will have an office in Washington
with eight employees and will have a second office in
Silicon Valley. In-Q-It will supply venture capital, hire contractors or
partner with entrepreneurs in four areas: 1) integrating Internet technology
and applications into the CIA's work; 2) developing new security and privacy
technologies; 3) nurturing data mining technologies to take better advantage
of the agency's vast storehouses of records, and 4) modernizing the agency's
computer systems. John McMahon, former deputy director of the CIA and an
In-Q-It board member said, the agency "was always one step behind" and it
hopes this will "be an umbilical cord that [is] plugged in to the brightest
minds in the Valley."
[SOURCE: New York Times (A1), AUTHOR: John Markoff]
(http://www.nytimes.com/library/tech/99/09/biztech/articles/29cia.html)
See Also:
THE CIA AS VENTURE CAPITALIST
[SOURCE: Washington Post, AUTHOR: David Ignatius]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-09/29/051l-092999-idx.html
)

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

Communications-related Headlines for 9/28/99

MEDIA & SOCIETY
The Info Culture: What's the Hurry? (ChiTrib)

TELEVISION
AT&T Wants FCC Rescue (B&C)
Cash-and-Carry TV (B&C)
Cable News Nets Go Small (B&C)

INTERNET & ONLINE SERVICES
Digital Dispatch: Internet Tax Debate Returns to the Hill
(CyberTimes)
Court Says Free-Lancer Permission Is Needed for
Electronic Publication (WSJ)
Network Solutions To Give Rivals Access To Domain
Names Database (SJM)
AOL Europe Enters A Deal To Reduce Local Toll Charges
For British Customers (WSJ)

MEDIA & SOCIETY

THE INFO CULTURE: WHAT'S THE HURRY?
Issue: Media & Society
Keller asks, "Has dwelling in the information age...really altered our lives
as much as it is rumored to have done?" Sure it has changed *how* we do
things, but has it changed how we feel about our lives? Using 19th century
British novels as a backdrop, Keller compares lives of old to ours now. In
fiction, at least, communication is convenient to the plot -- a
misdirected letter, garbled message, etc. Keller concludes: "Once we look
past the silly, pop-up thrills of plot, a longer view suggests that maybe,
just maybe, speed is rather unimportant, all told. Life happens faster these
days. But even at those souped-up velocities, does it happen any
differently? We still fall in love, fall out of love, cheat on loved ones,
covet someone else's loved one, live our lives in the same clumsy,
passionate, misbegotten ways that we always have. Armed with cell phones,
e-mail and satellite paging systems, we still stumble around in the dark,
making fools of ourselves."
[SOURCE: Chicago Tribune (Sec 5, p.3), AUTHOR: Julia Keller]
(http://chicagotribune.com/leisure/tempo/printedition/article/0,2669,SAV-990
9280180,FF.html)

TELEVISION

AT&T WANTS FCC RESCUE
Issue: Cable/Mergers
AT&T Chairman Michael Armstrong, along with fellow AT&T top executives Leo
Hindery and Amos Hostetter, spent much of last week searching for a
sympathetic ear at the Federal Communications Commission. Long distance
giant AT&T is trying to persuade regulators to approve its purchase of
MediaOne without requiring it to sell any investments. Last month, the
FCC's Cable Bureau issued recommendations that would force AT&T to divest
its stake in several media outlets to comply with current FCC rules that
limit a cable owner's reach to 30% of homes passed by cable. The Cable
Bureau supports a slight modification in the rules that would give companies
a little more reach by applying the limit to all multi-channel subscribers.
AT&T however, is pressuring the Commission to raise the cap to 35%. While
the FCC is eager to have the deal go through so AT&T can fulfill its promise
to offer local phone service via Media One cable network, it would like to
avoid the appearance of modifying the rules to fit the needs of one company.
[SOURCE: Broadcasting&Cable (p.12), AUTHOR: Bill McConnell]
(http://www.broadcastingcable.com/)

CASH-AND-CARRY TV
Issue: Broadcasting
The Federal Communications Commission will auction 27 television licenses
and a number of FM licenses this week. However, many of the licenses are
expected to be taken
off the menu as many competitors have come together to get the licenses
instead of competing for them. (FCC rules only require auctioning them if
there are competing applications in that particular market.) The licenses to
be auctioned can only be analog or digital, not both.
[SOURCE: Broadcasting &Cable (p20.), AUTHOR: Bill McConnell]
(http://www.broadcastingcable.com/top/top_article.asp?articleID=692238963)

CABLE NEWS NETS GO SMALL
Issue: Cable
With advertising revenue going up, cable news stations are finally getting
out of the red and into the black. They are selling advertising faster and
giving buyers sponsorships such as the Bell Atlantic "Community Calendar."
Some analysts believe the reason is the economy, while others believe it is
because cable news has been around for a while and has established an
audience and a decent reputation. Cable news is also making more money
because some of the journalists they employ shoot themselves on camera so
they save money on production. In June the Rocky Mountain Media Watch
released a study demonstrating that prime time cable broadcasts devoted
more time to news than local broadcasters -- 50.9% as compared to 41.3%. The
survey also showed that cable airs fewer commercials --
24% as compared to 31.4%.
[SOURCE: Broadcasting &Cable (p42.), AUTHOR: Deborah D. McAdams]
(http://www.broadcastingcable.com/)

INTERNET & ONLINE SERVICES

INTERNET TAX DEBATE RETURNS TO THE HILL
Issue: Internet
As a congressional panel of elected officials and high-tech executives
grapple with the question of whether and how to tax the Internet, two bills
banning taxes on electronic commerce are currently in the works. Senator
John McCain (R-AZ) has just filed a bill to make the current ban on new
Internet taxes permanent, and to outlaw any future attempts to impose a
sales tax structure on Internet purchases. Other lawmakers are preparing a
sequel to the original three-year moratorium on new Internet taxes that
will ask the World Trade Organization to adopt a global moratorium on
Internet taxes. A final report from the Advisory Commission on Electronic
Commerce appointed by Congress is not due until next year. "It seems to me
to be premature to be introducing new legislation until the commission
finishes its work and makes recommendations," said Larry Naake, executive
director of the National Association of Counties. "This sort of prejudges
that work."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/09/cyber/capital/28capital.html)

COURT SAYS FREE-LANCER PERMISSION IS NEEDED FOR ELECTRONIC PUBLICATION
Issue: Intellectual Property/Online Journalism
Last Friday, a federal appeals court ruled that publishers can't put
free-lance articles online and onto CD-ROMs without permission from writers.
This decision reverses a prior victory for media companies and it means
publishers must pay free-lance writers (as well as free-lance musicians,
photographers and fine artists) extra compensation to reproduce their work
electronically, unless the free-lancers specifically transfer that right in
a contract. The appeals court decision also ordered the case returned to a
lower court to decide on compensation for six writers who brought a suit
filed in 1993. The six writers accused media companies of copyright
infringement for reproducing work online without permission. The defendants
included the New York Times, Sports Illustrated, Newsday, Reed-Elsevier PLC
(owner of the Lexis/Nexis database) and University Microfilms. The
publishers argued that electronic databases are simply revised versions of
original publications and that federal copyright law doesn't require them to
pay authors extra. But the appeals court found that databases differ
significantly because they contain thousands or millions of individual
articles that can be retrieved without reference to the original
publication. As a result, the panel ruled publishers must get authors'
"express agreement" to put work on the Internet. Since this specific issue
can now be taken care of within the contracts between parties, Bruce Keller,
the lead lawyer for the publisher-defendants, said the real problem for
media organizations is what should be done about the 20 years of work prior
to this case, when publishers didn't necessarily acquire electronic rights
by contract.
[SOURCE: Wall Street Journal, (B15), AUTHOR: Frances A. McMorris]
(http://interactive.wsj.com/articles/SB938477288914120396.htm)

NETWORK SOLUTIONS TO GIVE RIVALS ACCESS TO DOMAIN NAMES DATABASE
Issue: Internet
Network Solutions, the Internet address registrar, and the Commerce
Department have finally reached an agreement, which will be announced today
at the Commerce Department, to allow competitors long-term access to the
company's domain name database. After a year of negotiating, Network
Solutions has finally agreed to let competing firms register new Internet
addresses for a fee of $6 per year, well below the $35 per year Network
Solutions charges its customers. The company had been battling the Commerce
Department and Congress asserting ownership of the more than 5 million
domain names it registered before the onset of competition. Network
Solutions will continue to manage the database of already registered names
for at least four more years under the agreement. The company has also
agreed to be overseen by the Internet Corporation for Assigned Names and
Numbers (ICANN), a California non-profit organization designated last year
by the Commerce Department to administer the domain name system.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/001932.htm)
See Also:
UPDATE ON PROGRESS OF DOMAIN NAME DISCUSSIONS
Commerce Secretary William M. Daley will provide an update on discussions
among the Department of Commerce, Network Solutions and the Internet
Corporation for Assigned Names and Numbers (ICANN) regarding management of
the domain name system. September 28, 1999 11:30 am, U.S. Department of
Commerce Room 4830. For more info contact: Morrie Goodman 202/482-4883 or
Ranjit De Silva 202.482.4358.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/92799sec.htm)

AOL EUROPE ENTERS A DEAL TO REDUCE LOCAL TOLL CHARGES FOR BRITISH
CUSTOMERS
Issue: Telephony
British telephone companies will reduce the local toll charges that AOL
Europe customers pay for access to AOL's flagship service to a flat
rate of one pence/minute. Unlimited access will continue to cost 9.99
pounds a month. Prior to this agreement, British subscribers have paid
variable phone charges (up to four pence a minute) for AOL access,
depending on the time of day. In Britain, phone companies assess toll
charges by the minute for local calls, unlike in the U.S., where most
phone customers pay a flat rate on a monthly or per-call basis for local
calls. The average AOL user in Britain spends 17 minutes online a day,
compared with about an hour for American users. AOL hopes the flat rate
will boost British usage. AOL Europe is a joint venture with German
publisher Bertelsmann AG.
[SOURCE: Wall Street Journal, AUTHOR: Peter Loftus]
(http://interactive.wsj.com/articles/SB938452150662764907.htm)
See Also:
AMERICA ONLINE UNIT TO REDUCE SUBSCRIPTION COSTS IN BRITAIN
[SOURCE: New York Times, AUTHOR: Andrew Ross Sorkin]
(http://www.nytimes.com/library/tech/99/09/biztech/articles/28online.html)

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

Communications-related Headlines for 9/27/99

TELEPHONY
MCI, Sprint Could Pass Antitrust Test (WSJ)
Long-Distance Market Calls to Bell Atlantic (WP)
Forum On Advertising of Long Distance Services (FCC)

INTERNET
As America Online's No.2 Brand These Days, Compuserve Is
Being Rejuvenated (NYT)
Internet Governing Body Needs Limits, Consumer Advocate Says (NYT)
Web Snares More Employment Ads (WP)

BROADBAND
Phone Firms Give Video A Look (SJM)

EDTECH
Hearing: Schools and Libraries Internet Access Act (House)
Lucas Film Follows Teachers Who Are Light-Years Ahead (USA)
Patents: A Computer Tutor for Children Learning to Read (NYT)

RECENT SPEECHES
Speech: New Century, New Media, New Opportunities (NTIA)
Speech: Vision to Mission: A Blueprint for Architects of the Global
Information Infrastructure (FCC)

TELEPHONY

MCI, SPRINT COULD PASS ANTITRUST TEST
Issue: Mergers
A merger of the nation's second- and third-largest long-distance telephone
companies
might win approval if the companies agreed to sell certain assets, federal
officials say. MCI WorldCom Incorporated is considering a buyout of Sprint
Corporation. "Even
though the numbers might suggest this would make the market too
concentrated," the Federal Communications Commission and Justice Department
would take into account new entrants in the market and the imminent entry
of the Bell companies, said a senior regulator who would be directly
involved in reviewing the transaction. "These would all be in favor of
allowing a deal." According to 1998 FCC figures, counting by revenue and
including residential and business traffic, Sprint had 11% of the market,
MCI WorldCom had 26% and AT&T led with 43%. MCI WorldCom might not get Sprint's
Internet-services network. Previously, the Justice Department forced
WorldCom to sell MCI's Internet-service assets to resolve antitrust
concerns when it approved the WorldCom buyout of MCI in July 1998. A
Sprint-WorldCom union would enable the company to dominate much of the
traffic on the Internet's "backbones," including many of the interchange
points that route traffic to and from high-speed data highways. New
entrants to the market are building their own networks including Qwest
Communications International Incorporated, Level 3 Communications
Incorporated and Frontier Corporation (which is being acquired by Global
Crossing). The large Bell companies are expected to argue for approval
of their own efforts to get into long distance, if the Sprint WorldCom deal
were to be approved.
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke, Kathy Chen]
(http://interactive.wsj.com/articles/SB938386410256181152.htm)
SEE ALSO:
TALK OF MCI WORLDCOM BID TO ACQUIRE RIVAL SPRINT CONNECTS ON WALL STREET
[SOURCE: Wall Street Journal (B6), Author: Rebecca Blumenstein, Nicole Harris]
(http://interactive.wsj.com/articles/SB938386755204299861.htm)

LONG-DISTANCE MARKET CALLS TO BELL ATLANTIC
Issue: Telephone Regulation
Bell Atlantic Corporation is expected this week to ask federal regulators
for the right to become the Baby Bell to secure approval to sell
long-distance service in its home-region. The Baby Bells, such as Bell
Atlantic, control the wires to homes and businesses and
were offered an incentive under the Telecommunications Act of 1996 to loosen
their monopolistic grip and allow competition. If they could satisfy the
Federal Communications Commission's directive to open their local markets to
competition, they could claim the right to sell long-distance service.
Nationwide, long-distance service is worth about $95 billion/year, with the
New York market accounting for $8 billion. Bell Atlantic's competitors say
the company shouldn't be allowed into long-distance service, maintaining
that New York is still unfairly dominated by a single local player and in
need of competition. But even those competitors concede
that Bell Atlantic has done more than any other Baby Bell to open its local
franchise. BellSouth Corporation was already rebuffed by the Federal
Communications Commission in its attempt to provide long-distance in
Louisiana and South Carolina. SBC Communications Incorporated is pressing to
enter the Texas market, while Pacific Bell is seeking approval in
California. Bell Atlantic has filed to get into long-distance markets in
Massachusetts and has given notice of intent to do the same in Pennsylvania
and New Jersey.
[SOURCE: Washington Post (A1), AUTHOR: Peter S. Goodman]
(http://www.washingtonpost.com/wp-srv/business/daily/sept99/bell27.htm)

FORUM ON ADVERTISING OF LONG DISTANCE SERVICES
Issue: Long Distance
The Federal Trade Commission (FTC) and the Federal Communications Commission
(FCC) announce that they will convene a joint public forum on November 4,
1999, to address the advertising and marketing of long distance services,
including dial-around services -- often called "10-10" numbers. The forum
will provide an opportunity for government, industry, and consumer groups to
discuss recent trends in how these long-distance services are advertised and
what principles should guide industry advertising. The FCC and the FTC have
determined that a joint public forum would be an appropriate way to give
interested individuals an opportunity to explore the issues raised by the
advertising and marketing of these services. For example, participants at
the forum will examine mock ads and discuss whether the ads fail to
adequately disclose the actual cost to consumers for using the services, or
only reveal in fine print important information about additional fees or
other charges.
The forum will convene at 8:30 a.m. on November 4th at FCC Headquarters at
445 12th Street, SW, Washington, DC, in the Commission Meeting Room. The
morning session will focus on the current state of long-distance
advertising, including dial-around services, as well as applicable law. The
afternoon session will feature analysis, by panelists, of mock
advertisements for long-distance services and a discussion about what can be
done to ensure that ads for long-distance telephone service provide
consumers with truthful information on which to make informed purchasing
decisions.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9070.html)
(http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1999/da991972.html)

INTERNET

AS AMERICA ONLINE'S NO.2 BRAND THESE DAYS, COMPUSERVE IS BEING REJUVENATED
Issue: Online Services
Viacom operates MTV and VH1. Coke has Diet Coke and Tab. Can America Online
be successful operating Compuserve? AOL announced last week that Compuserve
added 300,000 subscribers in this past quarter; during that time, Compuserve
had started offering rebates to consumers who purchased certain brands of
computers and signed up for three years of Internet access at ~$22/month.
AOL executives believe that the Internet access market will fragment into
different consumer tiers -- budget of value tiers, premium tiers and various
other levels in between. AOL is considered the premium service, Compuserve
the value. America Online's reasoning differs from the conventional wisdom
about the market for Internet service providers. Until very recently, many
industry executives and analysts predicted that providing Internet access
service was a business that would go the way of utilities; as with
electricity, consumers would care little who provided access so long as the
electrons flowed.
[SOURCE: New York Times (C6), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/09/biztech/articles/27serv.html)

INTERNET GOVERNING BODY NEEDS LIMITS, CONSUMER ADVOCATE SAYS
Issue: Internet
At a conference organized by Computer Professionals for Social
Responsibility and attended by many critics of the Internet Corporation for
Assigned Names and Numbers, consumer advocate Ralph Nader offered a 13-point
proposal to limit and define ICANN's authority. "ICANN has procedural
problems," Nader said. "Lack of openness is one. Lack of accountability,
lack of membership at the moment, and an unelected board making policy
decisions... And what is at stake here is the principal democratic
communication technology for the next century. These are big stakes." Esther
Dyson, chairs of ICANN's interim board, defended ICANN and its process at
the conference, saying the organization has strict bylaws that prevent it
from moving beyond decisions affecting the Internet's "plumbing" and from
being taken over by special interests. Dyson said that with the exception of
the proposal for an international charter, ICANN's bylaws look a lot like
Nader's plan. "We are not trying to be something that can be used as an arm
of governments or big corporate interests," Dyson said. "The goal of this
organization is to keep itself very limited." Milton Mueller, associate
professor of information studies at Syracuse University , said ICANN was
formed largely to protect trademark interests before new domain name
suffixes are added to the global network. All of ICANN's actions to date
reflect that, he said. "It is controlled by a faction with a specific
agenda," he said. "All of this has nothing to do with the technical
coordination of the Internet."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing (jeri( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/09/cyber/articles/27icann.html)

WEB SNARES MORE EMPLOYMENT ADS
Issue: Old vs New Media
The volume of help-wanted ads in newspaper has abruptly stopped growing
nationwide, according to the Conference Board in New York. There are three
theories for why this happening: 1) employers are anticipating a slowdown
in the economy next year, 2) employers have cut back recruitment because
available workers are so scarce, and 3) corporate recruiters are switching
significant amounts of ads to proliferating Internet recruiting World
Wide Web sites. It is the last theory that poses a potential problem for
the nation's newspapers. While surveys show newspaper help-wanted ads are
still preferred over online sites by a majority of job seekers, the gap
between the two sources is expected to close in a couple of years, unless
the newspapers capture a portion of the Web activity with sites that can
make money. CareerPath, operated by about 85 newspapers, is among the
largest online job sites, drawing on online versions of the newspapers'
classified ads. Approximately 4.5 million resumes are posted on 300 Web
sites, a figure that is projected to leap to 11.4 million by the end of
2001, according to Computer Economics, a Carlsbad, CA, research firm.
[SOURCE: Washington Post (30) AUTHOR: Peter Behr]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-09/27/036l-092799-idx.html)

BROADBAND

PHONE FIRMS GIVE VIDEO A LOOK
Issue: Broadband
Recently, the promise of cable companies offering a host of communication
services, including Internet and telephone connections, via upgraded TV
cables into the home has created a great deal of excitement. A handful of
phone companies, on the other hand, are equally excited about the prospect
of using digital subscriber line (DSL) technology, which operates over
existing copper
wires, to offer customers dozens of high-quality TV channels, movies on
demand and Internet access via TV sets. DSL makes possible the ability to
store dozens of shows and to pause and rewind live broadcasts. U S West, the
largest U.S. phone company to offer TV over DSL commercially, is using an
ultra-fast version of digital subscriber lines to bring 170 channels of TV,
high-speed Internet access and other services to suburban Phoenix. The video
costs $32/month, while the Internet link is $35 to $50/month. The up-front
cost of upgrading networks with more fiber-optic lines has prevented U S
West from debuting the service in any new cities this year. "In the U.S.,
cable's basically won," said analyst Josh Bernoff of Forrester Research
said. "And the most serious challenges to it are satellite and cable
overbuilders...(who are) not building phone networks, they're building other
cable networks to compete with the cable operators."
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/telco092799.htm)

EDTECH

HEARING: SCHOOLS AND LIBRARIES INTERNET ACCESS ACT
Issue: Erate
Thursday, September 30, 1999 at 10:00 a.m. in 2322 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on H.R. 1746, Schools and Libraries Internet Access Act. ** See summary below **
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/)

LUCAS FILM FOLLOWS TEACHERS WHO ARE LIGHT-YEARS AHEAD
Issue: EdTech
In his latest production endeavor, George Lucas has taken a break from
light sabers and space ships to focus on classrooms and computers. _Learn
&live_ , a documentary airing on public television this fall, highlights
the practices of five schools innovatively using technology as a learning
tool. "Why not mobilize the best technology, architecture, glitz and
imagination and bring kids along?" asks Harvard University's Howard Gardner,
who provides commentary for the film. "That's the catalytic power in Lucas'
vision." The film was co-produced by the George Lucas Foundation -- a
non-profit that promotes innovative teaching techniques -- and DC-based
multi-media company State of the Art. "There's been enough education
bashing," said Milton Chen, the foundation's executive director. "We want
to highlight the success stories in schools and help others learn to teach
in the digital age."
[SOURCE: USA Today (10D), AUTHOR: Olivia Barker]
(http://usatoday.com/)

PATENTS: A COMPUTER TUTOR FOR CHILDREN LEARNING TO READ
Issue: EdTech
Prof Jack Mostow and Project Listen at Carnegie Mellon University have
developed computer software that speaks and listens to children and helps
them learn to read. Students, wearing headsets with microphones, read aloud
short stories as the computer flashes them, sentence by sentence, on its
screen. If the computer hears the child stumble over a word or mispronounce
it, the computer offers a clue, such as a rhyming word that has a similar
spelling. For example, if the word is "sight" the computer will say and
display words like "right" or "fight," but not dissimilar rhymes like
"height" or "kite." "This project is feasible because the computer knows
what the child is attempting to read," Prof Mostow said. "That's why it's
much easier than taking voice dictation in that sense. It's harder in the
sense that there are an infinite number of ways to misread a word." For more
information, see (www.cs.cmu.edu/~listen).
[SOURCE: New York Times (C8), AUTHOR: Teresa Riordan]
(http://www.nytimes.com/library/tech/99/09/biztech/articles/27pate.html)

RECENT SPEECHES

SPEECH: NEW CENTURY, NEW MEDIA, NEW OPPORTUNITIES
Issue: Digital Divide
Remarks by Larry Irving at the Congressional Black Caucus Science and
Technology Braintrust, Washington, D.C., September 17, 1999. "Our economic
growth has been spurred by the stunning development of the high-tech sector
and Internet commerce, which have created tremendous new opportunities and
new jobs. These opportunities promise only to grow in the next century. Our
goal now, as Federal officials, legislators, and community activists, is to
ensure that these opportunities and jobs are available to people of all
races, all ages, and all areas, so that our "new economy" is truly an
inclusive economy. And the CBC has been, and can continue to be, at the
forefront of those efforts." Asst Sec Irving speaks to The Growth of New
Media, The Implications of the Technology Gap, and Opening Opportunities to
All Americans. He concludes: "The next century promises a digital economy
that is profitable and dynamic. And it is worth all our efforts to ensure
that every American can participate in the digital world. Author William
Gibson has been quoted as saying that "the future has arrived; it's just not
evenly distributed." As we move into the digital world, we cannot afford to
let technological literacy become unevenly distributed. We cannot afford to
become a nation divided between "information haves" and "information have
nots." CBC is one of the alliances that can prevent that result, and I look
forward to working with you in that campaign."
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/speeches/cbc9171999.htm)

SPEECH: VISION TO MISSION: A BLUEPRINT FOR ARCHITECTS OF THE GLOBAL
INFORMATION INFRASTRUCTURE
Issue: International
September 23rd Remarks of Chairman Kennard Before the World Economic
Development Congress. "If we are going to be serious about implementing
global [communications] infrastructures, we must think of them as global
from the start. We must envision them as global. We must build them as
global. We must operate them as global. We must create a structure to train
independent regulators in the world's developing nations. We must provide
others with institutional support. I see the need nearly every workday...
Each year, more than 200 delegations from around the world visit the
FCC for guidance in managing technology's gifts. It is time for the world to
step up to this challenge... before the digital divide grows even wider."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/spwek932.html)

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

Communications-related Headlines for 9/24/99

MERGERS
MCI WorldCom, Sprint Ponder Merger (WSJ)
EarthLink, MindSpring to Link Up, Challenge AOL (SJM)
Takeover of Ameritech is Nearly a Done Deal (CT)

BROADCASTING
BET Chief Restates Interest in Joining With UPN Network (WSJ)
Disputes Over Rights Arise As Stations Turn to Web Broadcasts
(SJM)

MERGERS

MCI WORLDCOM, SPRINT PONDER MERGER
Issue: Merger
MCI WorldCom and Sprint have been talking about a merger that would
combine
the nation's second- and third-largest long-distance carriers. If
MCI WorldCom buys Sprint, it would finally give MCI WorldCom a
nationwide
wireless network and boost its global presence in telecom. Sprint alone
is
valued at nearly $40 billion and its wireless business is valued at
about
$33 billion. MCI WorldCom has a far higher valuation at about $151
billion.
People familiar with the situation said that both sides have discussed a

financial structure for a deal in which MCI WorldCom would acquire
Sprint's
core business for stock. MCI WorldCom also would exchange Sprint's
existing
tracking stock for a new WorldCom tracking stock. This deal would
attract
close scrutiny by regulators as together, the companies would hold about
30%
of the U.S. consumer long-distance market. Another possible problem is
Deutsche Telekom and France Telecom, as each own 10% of Sprint and could

block the deal. Sprint probably would have to shed its Internet-backbone

business as part of the deal because MCI WorldCom already has its UUNet
division, which handles Internet traffic for AOL.
[SOURCE: Wall Street Journal, (A3), AUTHOR: Rebecca Blumenstein & Steven
Lipin]
(http://interactive.wsj.com/articles/SB938139008356922263.htm)

EARTHLINK, MINDSPRING TO LINK UP, CHALLENGE AOL
Issue: Merger
Yesterday, MindSpring Enterprises and EarthLink Network announced plans
to
merge, making the combined company the second largest Internet service
provider behind AOL. The new company will be called EarthLink. The
combined
2.8 million subscribers between EarthLink and MindSpring will move the
newly merged company ahead of Microsoft Networks' 1.8 million and AT&T's

estimated 1.7 million subscribers. However the company will still be far

behind AOL's 20 million subscribers. Still, MindSpring and Earthlink say
the
move is intended to allow the new company to compete with and undercut
AOL
The merger, expected to be completed sometime this spring, will produce
about $650 million in annual revenues and 4,000 employees. EarthLink and

MindSpring believe the new company will be able to grow at a much faster

pace predicting it will have 5 million subscribers next year and 8
million
in 2001. Each EarthLink share will be converted into 1.615 shares of the
new
company's stock and each share of MindSpring will be exchanged for one
share
of the new company.
[SOURCE: San Jose Mercury News, AUTHOR: Chris O'Brien]
(http://www.sjmercury.com/svtech/news/indepth/docs/mind092499.htm)

TAKEOVER OF AMERITECH IS NEARLY A DONE DEAL
Issue: Merger
The Illinois Commerce Commission (ICC) approved the acquisition of
Americtech by SBC Communications yesterday. SBC, a San Antonio based
company, must still receive approval from the Federal Communications
Commission for the takeover, but an agreement reached during the summer
suggests FCC approval will not be difficult to obtain. Ameritech's
takeover
was opposed by the ICC because of SBC's potential to stifle local phone
competition. Even with the acquisition given its blessing, the Illinois
commissioners are unsure of whether the deal will be good for customers.

Critics of the deal argue that SBC will raise rates in order to finance
its
bid to become a national carrier. Final action is expected from the FCC
in
two weeks.
[SOURCE: Chicago Tribune, AUTHOR: Jon Van]
(http://chicagotribune.com/news/printedition/article/0,2669,SAV-990924010...)

SEE ALSO:
ILLINOIS REGULATORS OK SBC/AMERITECH DEAL
[SOURCE: San Jose Mercury, AUTHOR: Anna Driver]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/886727l.htm)

BROADCASTING

BET CHIEF RESTATES INTEREST IN JOINING WITH UPN NETWORK
Issue: Minority Broadcast Ownership
BET Holdings Chief Executive Robert Johnson said he remains interested
in
combining his company with the struggling UPN broadcast network. Johnson

said he is examining a potential combination of BET, which owns the
Black
Entertainment Television cable channels and UPN. He also said that he
placed
a call Thursday to Herbert J. Siegel, chairman of Chris-Craft
Industries, a
50% owner of UPN, to initiate talks about a combination of the two media

outlets. Chris-Craft and Viacom, which owns the other 50% of UPN,
declined
to comment. Government regulators have indicated that Viacom may have to

unload its interest in UPN, the nation's sixth-largest broadcast-TV
network,
to win approval for its proposed purchase of CBS because of FCC rules
barring one company from owning two broadcast networks. In response,
Viacom
executives have argued that forcing Viacom to sell its stake in UPN
might
extinguish a programming voice that has built a niche serving
African-American viewers. Johnson said he thinks a broadcast network
owned
by the minority community would better serve the "true interests" of the

minority audience.
[SOURCE: Wall Street Journal, (B7), AUTHOR: Sally Beatty]
(http://interactive.wsj.com/articles/SB938129760189131645.htm)

DISPUTES OVER RIGHTS ARISE AS STATIONS TURN TO WEB BROADCASTS
Issue: Webcasting
Major League Baseball's legal offices are requiring stations around the
country to suspend Web simulcasts of their sporting events. They argue
that
the Webcasts are violations of copyright and other specific contractual
clauses. The issue is a symptom of technologies outpacing law.
Professional
basketball and football have similar restrictions as well. Televisions
stations have been more inclined to cease their Webcasts than pay for
the
costs of securing a second set of broadcast rights. Web simulcasts are
problematic
outside of sports as well. Yahoo! runs broadcast.com which offers
hundreds of
Webcasts. Broadcast.com constantly checks to make sure they are within
copyright limits. Vice President Kevin Parke notes that problems arise
most when the contracts fail to define the scope of rights within
copyright.
[SOURCE: San Jose Mercury, AUTHOR: Staff Writer]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/012778.htm)

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

Communications-Related Headlines for 9/23/99

EDUCATION
Girls Soak Up Technology in Schools of Their Own (NYT)

INTERNET
Free Web Services Challenge AOL's Dominance (WSJ)
FTC Warns of Online Porn Scams (WP)

INTERNET TELEPHONY
Visitalk.com Builds White Pages for Web Phone Calls (WSJ)

EMPLOYMENT
Tech-Worker Shortage Is Probed At Hearings (SJM)

EDUCATION

GIRLS SOAK UP TECHNOLOGY IN SCHOOLS OF THEIR OWN
Issue: Education
The Julia Morgan School and the Girls' Middle School, two girls-only
schools, have opened recently in the San Francisco Bay Area, include
engineering, science, computers and math at the center of their curriculums.
These schools are appearing at a time when applications to girls' schools
are on the rise. These all-girl math and science oriented schools hope to
disprove the notion that women do not belong in technical fields. The new
focus on science and technology at girls' schools comes at a time when high
school girls are said to be catching up to boys in math and science.
However, in 1998 girls made up only 17% of the high school students who took
the advanced placement exam in computer science. Kathleen Bennett, a
54-year-old former teacher and Silicon Valley technical writer, wrote the
business plan for the Girls' Middle School. She drew heavily on research
showing that by sixth grade, as puberty sets in, girls begin to lose the
self-confidence that once helped them excel in math and science. In a
single-sex environment, Ms. Bennett and other proponents of single-sex
education say, girls receive encouragement for what they do rather than for
how they look. Parents seem to agree. Since 1991, after two decades of
decline, the average number of applications to girls' schools each year has
been 32% higher.
[SOURCE: New York Times (E7), AUTHOR: Katie Hafner]
(http://www.nytimes.com/library/tech/99/09/circuits/articles/23girl.html)

INTERNET

FREE WEB SERVICES CHALLENGE AOL'S DOMINANCE
Issue: Internet
AOL's President and Chief Operating Officer, Bob Pittman, said if AOL did
not charge its fees for its Internet service, it would lose money. Such
fees made up about 70% of AOL's revenue in its last fiscal year. Investors
are concerned because AOL shares have tumbled nearly 50% since April, in
part because of anxiety regarding free and cut-rate Internet services
emerging. The largest free ISP, NetZero, has more than 1.7 million
registered users and Freei Networks, as well as others, have begun offering
no-cost access as well. AOL executives and analysts say for the near future
they do not have much to worry about ,as the business model for free ISPs is
questionable because the free ISPs face heavier costs and have no monthly
subscription revenue to cover those costs. But free ISPs say that by
carefully controlling communications costs they will be able to serve
customers at less expense than AOL. Free ISPs also believe they can generate
higher ad revenue than AOL, saying that their users are generally willing to
accept more on-screen ads since they are getting their service without cost.
[SOURCE: Wall Street Journal, (B8), AUTHOR: Nick Wingfield]
(http://interactive.wsj.com/articles/SB936755551505708177.htm)

FTC WARNS OF ONLINE PORN SCAMS
Issue: Content/Internet
The Federal Trade Commission is on the trail of Web "page jackers," scammers
who trick users into visiting Web sites filled with pornography. Web
scammers in Australia and Portugal copied about 25 million existing
non-pornographic Web pages and inserted fraudulent "meta tags"--hidden
descriptions of the Web page used by search engines to direct Internet users
to those pages. Once visitors found themselves at a pornographic site they
were then "mouse-trapped," or unable to exit from the page. Typing in the
address of a new page, hitting the back button or closing the browser screen
resulted in a series of new browser windows displaying the pornographic site
opening. The scam was intended to inflate the number of visitors accessing
the pornographic site. Commonly, the number of visitors to a Web site is
used in determining advertising prices. The FTC got a preliminary injunction
against the perpetrators of the scam citing the practices as fraudulent and
unfair to consumers. The FTC was able to convince the Australian authorities
to raid the offices of WTFRC PTY Ltd., the Australia base of the scheme. The
FTC is also working with Portuguese authorities. The commission also got
Network Solutions, the company that manages the master directory of Internet
sites, to withdraw the five Web addresses used in the fraud.
[SOURCE: Washington Post (B1), AUTHOR: John Schwartz]
(http://www.washingtonpost.com/wp-srv/business/daily/sept99/ftc23.htm)
SEE ALSO:
FTC CRACKS DOWN ON THREE WEB PORNOGRAPHERS
[SOURCE: Wall Street Journal (B12), AUTHOR: John Simons]
(http://interactive.wsj.com/articles/SB938042472464554993.htm)
Net Sites Co-Opted by Pornographers
[SOURCE: New York Times (A1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/library/tech/99/09/biztech/articles/23fraud.html)

INTERNET TELEPHONY

VISITALK.COM BUILDS WHITE PAGES FOR WEB PHONE CALLS
Issue: Internet Telephony
Officials at Visitalk.com think they have a solution to one of the biggest
factors holding back the routing of phone calls over the Internet. Even
though it seems pretty basic, assigning a recognizable "phone number"
to a computer -so that users at one machine can call users at other machines
has proved difficult thus far. With computers, getting from
one network to another isn't as easy because networks have
different kinds of addresses, which resemble a long line of
jumbled secret code and often are changed for security purposes. Visitalk.com
will introduce a technology that sorts through all of that and lets users
call one another wherever they are. The technology is called a permanent
Personal Communications Number that will become part of a global directory
for anyone who requests it and the company believes that directory will
become the equivalent of the White Pages for the Internet. The numbers will
be 12-digits number and observers believe the plan holds real promise in
helping
to convert computers into communications devices that can easily handle
phone calls, instant voice mail and messaging, video streaming and text.
"Our directory captures your current IP address, and it updates the
directory. Your number that we give you is universally portable," says
Michael O'Donnell, the company's president. The directory basically
functions as a virtual switchboard that can route free voice calls and video
over the Internet. Next week the company plans to introduce instant voice
messaging, a technology complete with "buddy lists" that company officials
say could rival online instant text messaging. "We think that what people are
doing on the Internet now is not chatting. It's typing," says Mr. Thimmesch.
"We hope to change that."
[SOURCE: Wall Street Journal, (B10), AUTHOR: Rebecca Blumenstein]
(http://interactive.wsj.com/articles/SB936721069421101868.htm)

EMPLOYMENT

TECH-WORKER SHORTAGE IS PROBED AT HEARINGS
Issue: Employment
Three days of hearings has lead many members of the National Research
Council's Committee on Workforce Issues in Information Technology to think
that High-tech companies have become so creative in finding ways to fill
highly technical jobs there is no need for government intervention. The
15-member committee is charged with ascertaining whether there's a
high-tech labor shortage and if government policies, such as the H-1B visas
for highly skilled foreign workers, are necessary. "There's no evidence in
the data to think there's a shortage," said Eileen Appelbaum, a committee
member and research director at the Economic Policy Institute. "There's
reason to think that supply is responsive to the demand because companies
are being more creative and flexible in finding and keeping workers." Many
panelists presented views very different from Appelbaum. Representatives
from Silicon Valley companies attempted to impress upon the panel the
severity of the situation and the need to approve more H-1B visas. All
seemed to agree the importance of a good educational system that would
funnel well-educated graduates into the workforce. "There is a huge concern
about the digital divide at the level of K-12 education," said Cecilia
Conrad, a professor of economics at Pomona College in Southern California
and panelist member. "We have to get kids interested and prepared to pursue
high tech jobs. This is the long-term solution."
[SOURCE: San Jose Mercury News, AUTHOR: K. Oanh Ha]
(http://www.mercurycenter.com/svtech/news/indepth/docs/visas092399.htm)

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

Communications-related Headlines for 9/22/99

DIGITAL DIVIDE
What Price Will Be Paid by Those Not on the Net? (NYT)
Net To Reach Poor Indian Villages With Video E-Mail (SJM)

EDTECH
Study Finds Problems With Web Class (NYT)

ANTITRUST
Summations Are Offered in Microsoft Antitrust Trial (NYT)

ADVERTISING
Blacks Target Computer Retailer (SJM)

BROADBAND
Venture Planned for Wireless Internet Link (NYT)

DIGITAL DIVIDE

WHAT PRICE WILL BE PAID BY THOSE NOT ON THE NET?
Issue: Digital Divide/E-Commerce
While much attention has been paid to the growing "digital divide" that
puts those without computers and computer skills at a competitive
disadvantage at work and school, there has been little discussion of the
consumer ramifications of not being wired. Those consumers who fail to
participate in e-commerce are paying more than just increased prices for
products. In the long run, "digitally dispossessed" consumers are at risk
of having limited quality selections at higher prices. Airlines,
bookstores, and even phone companies offer special pricing for their online
customers. Mark Cooper, research director for the Consumer Federation of
America, notes the disparity between long distance rates. In one case, a
rate of 7 cents per minute was made available to customers who paid online
with a credit card. Some experts, Donna L. Hoffman, a professor of
management at Vanderbilt University Hoffman, think "information have-nots"
will eventually benefit from the Internet commerce revolution. Competition
with online retailers and the demands from Internet-educated shoppers could
put pressure on off-line stores to improve both services and prices. "Some
think tank said this is not a case of haves and have-nots, but have-nows
versus have-laters," said Cooper, who is much less optimistic. "The real
problem is that the have-laters never catch up. You're going to be paying
more for a long time if you don't get online."
[SOURCE: New York Times (This article is part of an e-commerce special to
the New York Times), AUTHOR: Pam Belluck]
(http://www.nytimes.com/library/tech/99/09/biztech/technology/22bell.html)

NET TO REACH POOR INDIAN VILLAGES WITH VIDEO E-MAIL
Issue: International/Digital Divide
Next month, on the birthday of Indian independence leader Mohandas Gandhi,
video email booths will be inaugurated in eight towns in two of India's
poorest and most populous states -- Uttar Pradesh and Bihar. A conglomerate
of Indian high-tech companies has announced a program to wire booths,
complete with video cameras, for which villagers will be charged 15 rupees
-- or 35 cents -- to send or receive a three-minute message with voice and
video images through e-mail. Most villages in India still do not have phone
connections, and only about half of the country's entire population has a
telephone. "The Internet is beginning to go beyond what was considered the
elite of the city," said Dewang Mehta, head of the National Association of
Software and Service Companies. "Common people who do not have a personal
computer or a telephone can have an e-mail address."
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press Writer]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/012091.htm)

EDTECH

STUDY FINDS PROBLEMS WITH WEB CLASS
Issue: EdTech
A new study on Web-based distance education found that while there exists
good potential for technology in education, there are also significant
limitations as illustrated by the experiences of an online course at one
major university. Rob Kling, a professor at Indiana University in
Bloomington, co-authored a study that considers the experience of graduate
students who enrolled in B555, the fictitious name of a real Web-based
course offered by a university two years ago. Some of the negative aspects
of the online class involved a disorganized virtual field trip, confusing
assignments posted on the Web site, a deluge of daily email messages and
technical problems. Critics say making any generalizations about online
education from this study is difficult since the study looks at just one
class's experience.
[SOURCE: New York Times, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/09/cyber/education/22education.html)

ANTITRUST

US, MICROSOFT MAKE CLOSING ARGUEMENTS
Issue: Antitrust
Lawyers for Microsoft and the Justice Department returned to court
yesterday, almost a year after the trial began, for closing arguments in
the antitrust case against the software giant. The government argued that
Microsoft's decision to bundle its browser in its Windows operating system
has "cost consumers untold millions, probably hundreds of millions, of
dollars," and the evidence "leaves no doubt that Microsoft's illegal
behavior has been bad--very bad--for consumers." Microsoft's lead attorney,
John L. Warden, acknowledged that the firm has been an aggressive
competitor but maintained that it has broken no laws. Judge Thomas Penfield
Jackson is expected to issue a preliminary ruling sometime in the next
several weeks that will outline the facts he believes each side has proved,
with a final ruling expected several months later. Legal analysts believe
the two-step ruling process is intended to encourage the lawyers for
Microsoft and the government to reach an out-of-court settlement. The two
sides have held exploratory meetings previously, although sources familiar
with the case said these meeting have not lead to a settlement agreement.
[SOURCE: Washington Post, AUTHOR: Rajiv Chandrasekaran)
(http://www.washingtonpost.com/wp-srv/business/feed/a27599-1999sep22.htm)
See Also:
SUMMATIONS ARE OFFERED IN MICROSOFT ANTITRUST TRIAL
[SOURCE: New York Times, AUTHOR: Joel Brinkley]
(http://www.nytimes.com/library/tech/99/09/biztech/articles/22soft.html)

ADVERTISING

BLACKS TARGET COMPUTER RETAILER
Issue: Advertising/ Minorities
Several black entertainers have organized a campaign to demonstrate the
amount of money blacks are spending at CompUSA, which does virtually no
advertising on black media. Tavis Smiley, host of a Black Entertainment
Television show and popular syndicated radio personality Tom Joyner
galvanized a return receipts drive, asking listeners to send receipts from
their purchases at CompUSA stores nationwide after an advertising
consulting company identified CompUSA as a company that gives short shrift
to black media. "It doesn't make good business sense to not reach out in an
aggressive way to African-Americans and other people of color," Smiley
said. "A lot of folks who do this advertising think that white males are
the only ones who buy anything." CompUSA spokeswoman Suzanne Shelton said
that CompUSA is not advertising on the radio this year, focusing instead on
newspaper advertising. She refused however, to disclose how much of its
advertising was with black newspapers.
[SOURCE: San Jose Mercury News, AUTHOR: Janelle Carter (Associated Press
Writer)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/877316l.htm)

WIRELESS

VENTURE PLANNED FOR WIRELESS INTERNET LINK
Issue: Wireless/Internet
Yesterday, Excite( at )Home announced a venture with Airflash, a small private
company based in Redwood City, California, to deliver Internet information
using wireless links. Excite( at )Home, which was formed by the acquisition of
the Excite Web portal by the AtHome cable modem subsidiary of AT&T, has
agreed to work with Airflash exclusively in developing wireless services.
Joe Kraus, Excite( at )Home's senior vice president for content, said, "These
steps continue our focus on providing our customers with the best
personalized content wherever they are by whatever means they choose."
[SOURCE: New York Times, AUTHOR: New York Times Staff]
(http://www.nytimes.com/library/tech/99/09/biztech/articles/22wireless.html)

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

Communications-related Headlines for 9/21/99

INTELLECTUAL PROPERTY
Issue of Web Copyright Hotly Debated (SJM)

MERGERS
Bell Atlantic-Vodafone Pact (CNN)
VoiceStream Confirms Deal To Buy Aerial (WSJ)

E-COMMERCE
U.S. Commerce Dept to Collect Data on Online Sales (NYT)

WIRELESS
Users of Wireless Phones Find Unexpected Benefits (NYT)

INTELLECTUAL PROPERTY

ISSUE OF WEB HOTLY DEBATED
Issue: Intellectual Property
Congress has much on its table with respect to copyright and the Internet.
The issue extends far beyond the scientific community, affecting millions of
stockbrokers, librarians, real estate agents and publishers -- anyone who
makes a living collecting information. Today, such compilations or databases
go largely unprotected by copyright laws that safeguard the interests of the
authors and publishers of creative works. The database owners fear they will
lose profits if outsiders can freely copy their information as it costs them
tremendous amounts of money to collect and enter such data. On the other
hand, companies such as Yahoo! fear they could be run into the ground if
they can't easily trade works. The debate is essentially between people who
collect raw data and people who distribute it. Real estate agents, for
example, gather information about which apartments are available. Their
concern is that an online publisher could see their listings in the window
of an agency, copy them, and put them up on a Web site -- all perfectly
legal under current federal law. Lexis keeps vast collections of court
decisions. They might be faced with a competing on-line publisher who
decides to use Lexis data to launch a Website of all court decisions from
Massachusetts -- also perfectly legal under copyright law. "Why would anyone
spend $2 million to create a database if it's not going to be protected?''
said David Mirchin, of SilverPlatter Information, a database publisher in
Norton, Massachusetts. Companies such as AT&T and universities such as
Brandeis in Massachusetts want legislation that would not restrict people
from copying databases unless they plan to use the information in a directly
competitive way. Behind the push for stricter copyright regulations are Reed
Elsevier, owner of Lexis-Nexis and of Cahners Publishing of Newton,
Massachusetts, the American Medical Association and the National Association
of Realtors.
[SOURCE: San Jose Mercury, AUTHOR: Boston Globe]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/075686.htm)

MERGERS

BELL ATLANTIC-VODAFONE PACT
Issue: Merger/Deal
Today, Bell Atlantic and Britain's Vodafone AirTouch agreed to form a new
wireless telephone operation in the U.S. Under the terms of the venture,
which will have a market value of more than $70 billion, Bell Atlantic will
own 55% of the new company and Vodafone will own 45%. The companies said the
new operation would serve about 20 million wireless customers and 3.5
million paging customers throughout the U.S. Bell Atlantic will manage the
new venture.
[SOURCE: CNN, AUTHOR: CNNfn]
(http://www.cnnfn.com/1999/09/21/deals/vodafone/)

VOICESTREAM CONFIRMS DEAL TO BUY AERIAL; AT&T, SPRINT TO GET COMPETITION
Issue: Wireless
VoiceStream Wireless plans to acquire Aerial Communications, a
cellular-phone company, in its attempts to compete with wireless providers
AT&T and Sprint. The sale could cost as much as $3.27 billion. VoiceStream
is on a merger run, announcing 3 months ago it will acquire Omnipoint. All
three cell-phone providers VoiceStream, Aerial and Omnipoint use a digital
technology called GSM, or global system for mobile communications.
VoiceStream, Aerial and Omnipoint jointly serve 1.5 million customers.
Comparatively, AT&T's wireless unit has 11.5 million customers and Sprint's
wireless unit has more than four million customers. VoiceStream appears to
be building a wireless empire that could provide service between New York,
Hawaii, Minneapolis and Houston. The newly merged VoiceStream will have
licenses to operate cell-phone service in 22 of the nation's 25 largest
markets. Some Wall Street investors believe VoiceStream's mergers signal a
move towards consolidation of GSM operators in the U.S. While GSM is the
standard for digital-wireless service in Europe, the platform has not seen
widespread use in the U.S. However, the deal fueled speculation that
VoiceStream would move to acquire Powertel, the last remaining US
independent GSM operator.
[SOURCE: Wall Street Journal (B6), AUTHOR: Nicole Harris & Nikhil Deogun]
(http://interactive.wsj.com/articles/SB937834955210032356.htm)

E-COMMERCE

U.S. COMMERCE DEPT TO COLLECT DATA ON ONLINE SALES
Issue: E-Commerce
Next month, the U.S. Commerce Department will begin to track Internet
retailing as part of its monthly retail sales survey. When conducting its
retail sales surveys for October, November and December, the department will
now ask companies what portion of their sales took place online -- a
question that never before was part of the survey. "This is a fast-moving,
important development," said Lee Price, Commerce Department's chief
economist. "We are committed to getting out there and starting to ask
questions."
[SOURCE: New York Times, AUTHOR: Reuters]
(http://www.nytimes.com/library/tech/99/09/biztech/articles/21commerce-dept.
html)

WIRELESS

USERS OF WIRELESS PHONES FIND UNEXPECTED BENEFITS
Issue: Wireless
As the cost of wireless service has plummeted in the last year, cell phone
users are experiencing an unexpected benefit in addition to the convenience
of mobility. Wireless subscribers in the New York metropolitan region and
other localities have discovered that their cell phones offer a low-cost way
of making regional or long-distance toll charges that can be very expensive
on a wired phone. A wireless home calling area -- which in metropolitan New
York generally encompasses most of New Jersey, southern New York State,
including Long Island and Fairfield County in Connecticut -- is far larger
than the local calling area for traditional phone service. "This is an
inherent advantage of wireless carriers," said Mark Lowenstein, senior vice
president for global wireless research at the Yankee Group, "that they're
able to exploit more and more because they have these larger calling areas."
[SOURCE: New York Times (A27), AUTHOR: Reuters]
(http://www.nytimes.com/yr/mo/day/news/national/regional/ny-wireless-phones.
html)

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

Communications-related Headlines for 9/20/99

INTERNET CONTENT
Plan Calls For Self-Policing Of The Internet (NYT)
Niche Sites Court Ethnic Groups (SJM)

BROADBAND
Broadband Offers The Possibility Of Overcoming Some Of The
Drawbacks of Going Wireless (WSJ)

INTERNATIONAL
Telefonica Plans Internet Service With Fiber-Optics for High Speed
(WSJ)
Ban on Overseas Funds Threatens Growing Chinese Internet Sector
(WSJ)

INTERNET CONTENT

PLAN CALLS FOR SELF-POLICING OF THE INTERNET
Issue: Content
Bertelsmann Foundation, a nonprofit organization associated with the
German media conglomerate Bertelsmann AG, has developed recommendations for
how the Internet industry could police itself to avoid government
regulation. The proposal, which suggests the creation of an international
rating and filtering system for the Internet, has not been warmly received
by civil
libertarians and major Web publishers who fear that the plan could
backfire and chill free speech online. "This is being put forward as an
effort to
prevent regulation of content, but there is a very good possibility it
could end up inviting official censorship," said David L. Sobel, general
counsel at the Electronic Privacy Information Center. Free speech
advocates are especially concerned about a part of the proposal that recommends
that industry develop a global voluntary rating system that parents could use
with filtering software to block content. They fear that the system
might invite regulation, perhaps causing governments to require sites to rate
themselves.
[SOURCE: New York Times (C4), AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/09/biztech/articles/20rate.html)

NICHE SITES COURT ETHNIC GROUPS
Issue: Internet
Latino, Asian, and African-American cultures are increasingly the
inspiration for niche Web portals. Picosito (http://www.picosito.com)
and LatinoLink.com (http://www.latinolink.com) are providing bilingual
content for Latino Internet users. The new portal Ipopcorn
(http://www.ipopcorn.com) was designed to appeal to Asian teens,offering
trends and fashion content in English and Korean. Black Entertainment
Television plans to release BET.com (http://www.BET.com) this December.
While all of these sites offer the typical portal fare one could find at
Yahoo!, the creators see their efforts as contributions to communities that
have suffered from a lack of access to the benefits of online content.
[Source: San Jose Mercury News, AUTHOR: Deborah Kong]
(http://www.mercurycenter.com/svtech/news/indepth/docs/divers092099.htm)

BROADBAND

BROADBAND OFFERS THE POSSIBILITY OF OVERCOMING SOME OF THE DRAWBACKS OF
GOING WIRELESS
Issue: Broadband
Will the trend toward wireless technology translate into slower
transmission speeds and low-resolution images? The answer: Not if
wireless broadband lives up to its promise. Similar to wired broadband,
wireless
broadband offers a single system that can handle phone calls, television
and the Internet -- with good quality and at high speeds. Proponents
contend that consumers will gain faster access to voice, data and video
with wireless broadband technology. While wired broadband relies on
upgraded cable TV or local hone lines, wireless broadband uses
high-frequency signals to bounce information over airwaves between
customers. New technology, such as 3G (third-generation cellular),
promises to turn cell phones into Internet terminals and video monitors while
operating at extremely high speeds. According to some estimates, the
number of wireless broadband users could reach more than three million by
2004,
from 200,000 users expected by the end of this year. Companies such as
MCI WorldCom Inc., Sprint Corp., and Liberty Media view fixed wireless as a
cheap alternative to traditional terrestrial networks, which can be
expensive and time-consuming to build. Telecommunication companies favor
wireless broadband because it would allow them to sidestep local phone
company fees and directly access consumers. Wireless broadband is also
accommodating for video because it allows rivals a way to break into
local cable markets. One issue that arises with wireless broadband however, is
the need for a clear line or path for signals to travel as they bounce
from rooftop to rooftop.
[SOURCE: Wall Street Journal R14, AUTHOR: Leslie Cauley]
(http://interactive.wsj.com/articles/SB937330759496517058.htm)

INTERNATIONAL

TELEFONICA PLANS INTERNET SERVICE WITH FIBER-OPTICS FOR HIGH SPEED
Issue: Broadband/International
Telefonica has just announced plans for a $6.2 million pilot project,
called Acteon, designed to introduce Spain to Internet 2. Acteon will
kick off this December and will connect selected corporate clients to an
ultrahigh-speed Internet connection similar to the second-generation
Internet developed in the U.S. Telefonica will be in charge of the
project and the network design, while partners such as Cisco Systems, Lucent
Technologies., Intel and Microsoft will supply both high-tech equipment
and some of the new experimental applications to be developed on the
network. A fiber-optic network will be laid between Madrid and
Barcelona, allowing data transfers at 2.4 gigabytes per second. "That means
operations one thousand times as fast as the typical Internet connection,"
explained Guillermo Fernandez Vidal, chief executive officer of Telefonica
Data,
one of the group's units participating in the project. Several hospitals,
universities and banks will help develop and test the new applications.
The high-speed line promises to revolutionize the Internet in Spain, where
deregulation of the telecommunications industry and subsequent
lower-cost access has increased the number of Internet users to more than three
million.
[SOURCE: Wall Street Journal, AUTHOR: Keith Johnson]
(http://interactive.wsj.com/articles/SB937780456129753577.htm)

BAN ON OVERSEAS FUNDS THREATENS GROWING CHINESE INTERNET SECTOR
Issue: E-commerce/International
Foreign capital for Chinese Internet start-ups has nearly vanished after
the government's recent declaration that foreign investments are
illegal, sparking a crisis among the industry's entrepreneurs and setting back
Internet development in China. Until last week, China had venture
capitalists searching the country a market where the number of Internet
users has recently doubled to an estimated four million -- for new
Internet firms to invest in. Many Chinese companies were eager to sign on
because
of the need for capital. Most venture funds expect the new restrictions
ease, but until they do, few are willing to risk their money. Foreign
investors say capital that can't be placed in China will go to Hong Kong,
Singapore and Taiwan, which also have rapidly growing Internet industries
serving
Chinese users.
[SOURCE: Wall Street Journal, AUTHOR: Matt Forney]
(http://interactive.wsj.com/articles/SB937767748292978091.htm)

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

Communications-related Headlines for 9/17/99

COPYRIGHT
Judges Pick David Over Goliath in Domain Name Suits (CyberTimes)

INTERNATIONAL
China's Internet Providers Remain Bowed, Not Broken (NYT)

DTV
'New way' of digital TV from Cablevision, Sony (SJM)

ADVERTISING
Old Media Get a Web Windfall (WSJ)

COPYRIGHT

JUDGES PICK DAVID OVER GOLIATH IN DOMAIN NAME SUITS
Issue: Copyright
While the courts have tended to side with large trademark holders in many
Internet domain name cases, a Boston judge has recently ruled in favor of
the little guy in such a suit. Hasbro, the giant toy maker, had charged
Clue Computing, a tiny Colorado-based computer consultant, with trademark
infringement and dilution for registering the "clue.com" domain name. In
this case Hasbro had to prove that the well-known trademark for its board
game "Clue" was inherently diminished by Clue Computing's use of the domain
name. Judge Douglas P Woodlock was not convinced, finding that the
legitimate competing use of the domain name is not dilution. "Holders of a
famous mark are not automatically entitled to use that mark as their domain
name; trademark law does not support such a monopoly," the judge wrote.
Carl Oppedahl, an intellectual property lawyer based in Colorado, predicts
that the ruling in this case is "going to help domain-name owners avoid
being panicked by cease-and-desist letters [from large trademark holders].
It should give should give them courage."
[SOURCE: CyberTimes, AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/library/tech/99/09/cyber/cyberlaw/17law.html)

INTERNATIONAL

CHINA'S INTERNET PROVIDERS REMAIN BOWED, NOT BROKEN
Issue: International/E-commerce
Companies that have invested in China are now trying to save face in the
wake of the announcement by Wu Jichuan, the Minister of Information
Industries that it is illegal for foreigners to own shares in companies
providing Internet content or services. Foreign-based businesses wonder if
Jichuan will really get rid of companies that are investing a significant
amount of money and bringing new business to China. The best known portals
in China, SINA.com and Sohu.com, both have substantial foreign
investment. Most of the affected companies said that the supposed ban on
foreign investment would not stick and, indeed, one ministry official
hinted today that the rules might be eased in the future. Wang Lijian, vice
director of the ministry's news office, also noted that the
telecommunications rules would be revised later this year in a manner
"beneficial for investment and development." At a news conference, James
Jarrett, president of Intel China, said his company had invested in several
Chinese Internet companies. He said he felt that, in the end, officials
would realize that such investments contributed to China's progress.
Representatives of other investing companies said that a ban on foreign
investment would be self-defeating because it would cause foreign firms to
direct capital and energy to places like Taiwan and Hong Kong instead.
[SOURCE: New York Times, AUTHOR: Erik Eckholm]
(http://www.nytimes.com/library/tech/99/09/biztech/articles/17china.html)
See Also:
INTEL IGNORES NEW CHINESE CURB ON FOREIGN INTERNET INVESTMENTS
[SOURCE: Wall Street Journal, AUTHOR: Matt Forney and Jason Dean]
(http://interactive.wsj.com/articles/SB937512478655805415.htm)

DTV

'NEW WAY' OF DIGITAL TV FROM CABLEVISION, SONY
Issue: Digital Television
Cablevision Systems and Sony have joined in an alliance to develop a
digital system that will allow viewers to watch movies, play video games
and send e-mail, all from a box on top of their TV sets. Cablevision, the
sixth largest cable operator in the United States, will pay around $1
billion to Sony for the set-top boxes, which are expected to be launched in
the New York area in about a year. "The interactive TV top box puts the
customer in charge of the service," said Cablevision President and CEO Jim
Dolan. "The potential new service is limitless, and since the customer is
in control of the technology, it could also lower monthly bills.'' The
system would also be ready to convert to new high definition television (HDTV).
[SOURCE: San Jose Mercury News, AUTHOR: Steve James (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/861825l.htm)

ADVERTISING

OLD MEDIA GET A WEB WINDFALL
Issue: Advertising/Radio
Internet start-ups, desperate for name recognition, are pouring hundreds of
millions of advertising dollars into good old radio. Radio is seeing some
of its fastest advertising growth in history, thanks to web companies
wanting to advertising on the medium. Radio-ad revenues from Internet
companies are expected to nearly triple to $800 million this year, says the
Radio Advertising Bureau, a New York-based trade group. The rush to radio
illustrates some of the realities of building an Internet business in the
late 1990s -- companies see radio as a fast and relatively inexpensive way
to get their names known. A spot can be written, produced and running in
just a few weeks or less -- compared with a minimum four weeks for a TV
spot. "Television is the most powerful medium -- and probably will be for
the foreseeable future," concedes Bruce Mowery, marketing vice president at
More.com. But "speed is important, particularly when you're moving in
Internet time."
[SOURCE: Wall Street Journal (B1), AUTHOR: Suein L. Hwang]
(http://interactive.wsj.com/articles/SB937525101883206955.htm)

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