February 2000

Communications-related Headlines for 2/14/2000

INTERNET
World Bank Unit To Join In Internet Start-Up Finance (NYT)
Pacific Islands Seek Control of Internet Designations (NYT)
Small Start-Up Firms Solve Challenges of Staffing Offices Around
the World (WSJ)
Digital Commerce: What Happens When Internet Networks
Stop Peering? (NYT)
Covering the Campaigns for the Citizen Browser (NYT)

BROADBAND
America Online Changes Tune In The Debate Over Cable Access (WSJ)
Net Providers Want Cable Access (WP)

WIRELESS
FCC to Vote for Rules to Facilitate Caller-Pay Plans for Cell Phones
(WSJ)

TELEVISION
TV Makers, Cable Firms Try to Reach Agreement on Methods for
Digital Links (WSJ)

MERGERS
Web Bank Deal in Spain Likely to Spur a Wave of New Pacts (WSJ)

PRIVACY/SECURITY
Privacy Complaint Against DoubleClick (EPIC)
Online Attacks Renew Security Calls (WP)

Congressional Hearings this Week (House)

INTERNET

WORLD BANK UNIT TO JOIN IN INTERNET START-UP FINANCE
Issue: Digital Divide
The World Bank's International Finance Corporation unit will announce today
that it is teaming up with Softbank of Japan to create a $200 million fund
that will finance Internet start-ups in 100 developing countries. The
International Finance Corporation will also join Softbank's existing plan to
invest $300 million in Internet companies in China and South America,
bringing third world Internet development funding to $500 million. Softbank
Emerging Markets will provide seed capital to entrepreneurs building
Internet businesses in poor countries as well as transferring successful
e-commerce business models and training managers to apply them. "The digital
divide is one of the greatest impediments to development, and it is growing
exponentially," the World Bank President James Wolfensohn said. "We are
taking a lead effort to close the gap. This investment will accelerate the
inclusion of the developing countries in the information revolution."
Softbank has provided seed money for Yahoo, E*Trade and Buy.com, among others.
[SOURCE: New York Times (C6), AUTHOR: Joseph Kahn]
(http://www.nytimes.com/)

PACIFIC ISLANDS SEEK CONTROL OF INTERNET DESIGNATIONS
Issue: Internet
On Friday, the United States government and Icing confiscated the ".mn"
domain name from a registrar company and returned control of it back to the
49 inhabitants of Pitcairn Island, a British territory in the South pacific.
It may be just the first confrontation between Internet profiteers and small
countries and territories who were assigned two-letter Internet domains in
the early 1990s. Because these countries were late to the Internet and
e-commerce, many are now just now discovering that their domains are
something worth holding on to.
[SOURCE: New York Times (C1), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/)

SMALL START-UP FIRMS SOLVE CHALLENGES OF STAFFING OFFICES AROUND THE WORLD
Issue: Ecommerce
As an increasing number of Internet start-ups set up office around the world
to tap into unique talent pools, cultural strengths and favorable business
regulations, they find themselves having to overcome time-zone coordination
and miscommunication issues between people using second languages as common
ground. The separation by many time zones can cause friction even among the
most congenial offices. Companies combat these problems with a combination
of teleconferences, frequent international travel and an atmosphere of
openness and understanding of the different cultures involved. "You have to
have an atmosphere of openness, knowing that people may come at an subject
from an unfamiliar angle. People have to be really open and listen very
hard," says the CEO of TrustWorks, a company with offices in Russia and the
Netherlands. TrustWorks cross-cultural structure gave it an advantage in
hiring highly talented programmers from Russia, a pool of programmers that
the company can't replicate in the U.S.
[SOURCE: Wall Street Journal (B13B), AUTHOR: Jeanette Borzo]
(http://interactive.wsj.com)

DIGITAL COMMERCE: WHAT HAPPENS WHEN INTERNET NETWORKS STOP PEERING?
Issue: Internet
A look at "peering," the arrangement between Internet service providers that
allows data to move freely across different networks as it moves from sender
to receiver. There have been no exact rules for peering, however, perhaps an
overly loose arrangement upon which to base the New Global Economy, Caruso
writes. In the early days of the Internet, self-interest forced backbone
providers into peering. But with the pending merger of Worldcom-Sprint, one
company will control nearly half of the Internet's backbone. With that comes
a fear that it is only a matter of time before one big backbone provider
refuses to exchange data traffic with one of its peers. No rule guarantees
fair, open and nondiscriminatory interconnection, the most basic function of
the Internet. David Farber, the FCC's chief technologist, believes
regulation should be viewed as the "sacred sword of last resort...If you
can't get companies to behave in their own self-interest -- and it is good
self-interest to have a vibrant, growing Internet; none of these companies
would exist if there wasn't one -- then this sacred sword can be used if
necessary."
[SOURCE: New York Times (C4), AUTHOR: Denise Caruso]
(http://www.nytimes.com/)

COVERING THE CAMPAIGNS FOR THE CITIZEN BROWSER
Issue: Online Journalism
A look at the reporters who are covering politics for Internet news outlets
Slate, Salon.com and the National Review online. Some are allowed to work
without an editor and most can release a story as soon as it is completed,
not having to wait for a pre-set publication date. But since bylines are
often hot-linked, readers immediately provide feedback on these journalists'
works.
[SOURCE: New York Times (C1), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/)

BROADBAND

AMERICA ONLINE CHANGES TUNE IN THE DEBATE OVER CABLE ACCESS
Issue: Broadband/Open Access
To the surprise of everyone in the theater, a plot twist. America Online is
now moving away from its position on open access to cable Internet networks.
George Vradenburg, AOL's senior vice president in charge of global and
strategic policy, says AOL and Time Warner may not open their cable networks
to all ISPs -- and that AOL had never suggested that any cable operator
should. He says that all along, AOL has argued for opening to "multiple
ISPs" [read: as long as it includes AOL] in the context of technological
capacity restraints, and that the San Francisco filing used the phrases
"all" and "multiple" interchangeably. "You want to achieve as many ISPs as
you can without increasing the costs or degrading services," he says.
Without discussing details, Mr. Vradenburg says AOL/Time Warner's approach
to open access will be "something new and fresh that is in the best
interests of cable consumers in general." [I can't quite make it out, but it
looks like "regulatory flexibility" on the horizon] AOL has already signaled
a shift in its strategy at the state and city levels. It recently asked its
local lobbyists to stop pushing state legislation that would mandate open
access, an AOL spokeswoman says. AOL's new approach could put the Dulles
(VA) company in the awkward position of opposing some of its early allies in
the open-access fight. "AOL has crossed the line from [supporting] public
policy to pure private negotiations," says Mark Cooper of the Consumer
Federation of America, which backed AOL's push last year for government
involvement. "Once you cross the line, the little guys get overlooked."
Andrew Schwartzman, president of the Media Access Project, a nonprofit,
public interest law firm in Washington, says the companies' proposed
solution isn't likely to stop many localities from demanding the same kinds
of open-access requirements that AOL advocated last year. "It's possible AOL
will be fighting on the other side of this issue," he said. "But we will
tell them they'll have no credibility."
[SOURCE: Wall Street Journal (B1), AUTHOR: Kathy Chen (kathy.chen( at )wsj.com)]
(http://interactive.wsj.com/articles/SB950485221621837868.htm)
SEE AlSO:
As a Cable Company, AOL Changes its Tune
[SOURCE: San Jose Mercury Online, AUTHOR: Peter Goodman and Craig Timberg]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/aol021400.htm)

NET PROVIDERS WANT CABLE ACCESS
Issue: Broadband
Local lawmakers across the country are caught in the middle of a battle
between Internet service providers and cable companies. The ISP's insist
that the cable systems provide them with access to their lines so that they
might be able to provide high-speed access to residential customers. The
cable companies, on the other hand, claim that opening their systems would
restrict their ability to expand services, potentially harming consumers.
Open access bills have been introduced in about 15 states this year, with
Pennsylvania and Maryland's bills having the best chance of passing.
Portland (OR) passed first open access law in 1998, but it has been tied up
in court challenges almost since its inception.
[SOURCE: USA Today (9A), AUTHOR: Richard Wolf]
(http://www.usatoday.com/usatonline/20000214/1933540s.htm)

WIRELESS

FCC TO VOTE FOR RULES TO FACILITATE CALLER-PAY PLANS FOR CELL PHONES
Issue: Wireless
The FCC is expected to approve the "calling party pays" regulation this
Thursday, allowing cell phone users to choose to have any incoming call paid
for by the caller. Currently, most cell phone users pay for both incoming
and outgoing calls. The regulation is supposed to let callers know how and
how much they will be charged for placing the call. Callers are also
supposed to be given the opportunity to hang up before being charged. While
the regulation mirrors standards already in use by the industry, nationally
the U.S. lags far behind the rest of the world in implementing such billing
system. Only a few carriers offer the service currently on a limited basis
- Bell Atlantic Mobile, Air Touch Communications and AT&T Wireless.
http://interactive.wsj.com/articles/SB950483465748983977.htm

TELEVISION

TV MAKERS, CABLE FIRMS TRY TO REACH AGREEMENT ON METHODS FOR DIGITAL LINKS
Issue: Digital TV
Representatives from the cable industry and the digital TV industry agreed
late Friday on a method for digital TVs to process signals from cable
systems. Special access and filtering technology would be built-in to the
new TV's, removing the need for separate set-top boxes that are currently
required by today's analog cable-ready TVs. But disagreement still reigns
over the operation of on-screen program guides and the precise definition of
what features will qualify a digital TV as cable-ready. The on-screen guide
issue is important because TV makers are equipping their sets with built-in
guides that receive their data from the signals of normal TV programs. TV
makers fear that cable operators will delete that feature and force
consumers to use the on screen guide delivered by the cable system, allowing
the cable operator to build a brand reputation with subscribers. FCC
Chairman William Kennard has said that the agency would impose its own
cable-ready digital TV specification by April if the industries don't settle
their differences. If that happens, the technical debate would become open
to the public. If the sides do reach resolution soon, cable-ready digital
TVs should appear in stores late 2001.
[SOURCE: Wall Street Journal (B8), AUTHOR: Evan Ramstad]
http://interactive.wsj.com/articles/SB950482354889773291.htm

MERGERS

WEB BANK DEAL IN SPAIN LIKELY TO SPUR A WAVE OF NEW PACTS
Issue: Mergers
Banco Bilbao Vizcaya Argentaria and Telefonica SA announced Friday an
agreement to invest six billion euros ($6.1 billion) in an exchange of
minority stakes and in a dozen joint projects. Their combined influence in
the world of Internet banking will likely promote a wave of tie-ups between
big commercial banks and telecommunications groups, particularly those with
strong wireless potential. Under the agreement, Juan Villalonga,
Telefonica's chairman, will become deputy chairman of Banco Bilbao; Banco
Bilbao co-Chairman Francisco Gonzalez will become deputy chairman of the
phone operator. The exchange of stock lays groundwork for the most powerful
economic group in Spain. The extensive interests in media, finance and
industry that the combined group would control in both Spain and Latin
America could raise some concerns with regulators, analysts said. The move
gives Banco Bilbao and Telefonica the lead in the race to tap the potential
of wireless telecommunications and the Internet. One important aspect of the
deal calls for the joint development of wireless application protocol
technologies, which enable mobile-phone users to surf the Internet.
Similarly, Banco Bilbao agreed to take a 5% stake in a Telefonica-led
consortium that is bidding for one of the four UMTS, or Universal Mobile
Telecommunications System, third-generation
licenses in Spain.
[SOURCE: Wall Street Journal, AUTHOR: Carla Vitzthum and Keith Johnson]
(http://interactive.wsj.com/articles/SB950468919984784786.htm)

PRIVACY/SECURITY

PRIVACY COMPLAINT AGAINST DOUBLECLICK
Issue: Privacy
EPIC has filed a complaint
(http://www.epic.org/privacy/internet/ftc/DCLK_complaint.pdf) with the
Federal Trade Commission concerning the information collection practices of
DoubleClick Inc., a leading Internet advertising firm, and its business
partners. The complaint alleges that DoubleClick is unlawfully tracking the
online activities of Internet users and combining surfing records with
detailed personal profiles contained in a national marketing database.
EPIC's complaint follows the merger of DoubleClick and Abacus Direct, the
country's largest catalog database firm. DoubleClick has announced its
intention to combine anonymous Internet profiles in the DoubleClick database
with the personal information contained in the Abacus database.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/privacy/internet/ftc/DCLK_comp_pr.html)

ONLINE ATTACKS RENEW SECURITY CALLS
Issue: Security
As the White House prepares for a meeting at which business and government
leaders will discuss the Internet's vulnerability tomorrow, last week's
online attacks are at the top of the agenda. Additionally, Attorney General
Janet Reno and FBI Director Louis J. Freeh are scheduled to testify before
Sen. Judd Gregg (R-NH) about whether law enforcement agencies require more
money to battle online crime. The Justice Department has asked for $37
million in additional funding to expand efforts to police the Internet. This
money would be part of the $2 billion that the Clinton Administration has
earmarked for fighting online crime and terrorism in next year's budget.
Meanwhile, civil libertarians worry that the administration's calls for
tougher law enforcement put the Internet at risk by mitigating the open
nature that has helped propel the Internet into becoming a critical part of
the country's economy. While groups that oppose more government control of
the Net are quick to point out that they in no way support last week's
attacks, they also say that they open and international nature of the
Internet makes policing it by U.S. law enforcement agencies unlikely to be
effective.
[SOURCE: Washington Post (A9), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-dyn/business/A48838-2000Feb13.html)

CONGRESSIONAL HEARINGS THIS WEEK
Issue: Legislation
Wednesday, February 16, 2000 10:00 am in 2123 Rayburn House Office Building.
Subcommittee on Telecommunications, Trade and Consumer Protection hearing
titled "Video on the Internet: iCraveTV.com and Other Recent Developments in
Webcasting."
Thursday, February 17, 2000 10:00 am in 2322 Rayburn House Office Building.
Subcommittee on Telecommunications, Trade and Consumer Protection hearing
titled "A Review of the FCC's Spectrum Management Responsibilities in
addition to H.R. 3439, the Radio Broadcasting Preservation Act."
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

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

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone does
not represent the tone of the original articles. Headlines are compiled by
Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis (nancy( at )benton.org) -- we
welcome your comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 2/11/2000

DIGITAL DIVIDE
Desire To Close Digital Divide (NYT)
Does Everyone Need To Be Online? (SJM)

PRIVACY
FTC Chief Says E-Commerce Industry Should Reconsider Privacy-Rules
Stance (WSJ)
New Complaints on Tracking of Web Surfers (NYT)

WIRELESS
Cell-Phone Firms Testing "Caller Pays" (SJM)

SECURITY
Hackers, Security Pros Call Web Attacks Vandalism Consultants Ponder
Motive (USA)

INTERNATIONAL
NTT's Web Pricing Is Called Possibly Predatory As U.S.-Japanese
Telecom Trade Fight Deepens (WSJ)
Barriers Can Slow Net Industry In Asia (USA)

DIGITAL DIVIDE

DESIRE TO CLOSE DIGITAL DIVIDE
Issue: Digital Divide
A poll released Thursday indicates American workers are in favor of some
government intervention in minimizing the effects of the digital divide.
According to the poll conducted by Rutgers University and the University of
Connecticut, American workers want the federal government to support
computer literacy programs in high school. 80 percent of those polled said
they support computer literacy programs in high school. Entitled "Nothing
But Net: American Workers and the Information Economy," the study divided
computer users into several groups depending on how often they used a
computer. Daily users were termed "technophiles;" people with no access were
termed "exiles." Other findings: eight in ten respondents believed
information technology was good for the economy; sixty-eight percent of the
workers use a computer everyday; twenty-three percent learned to use a
computer at work, and more employees would like to be able to telecommute.
Researchers interviewed 1,005 working adults by telephone from Jan. 5 to
Jan. 19. The poll has a margin of error of plus or minus three percentage
points.
[SOURCE: New York Times, AUTHOR: Associated Press]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/11divide-poll.ht
ml)
SEE ALSO:
'DIGITAL DIVIDE' PLAGUES WORKERS
[SOURCE: Dallas Morning News, AUTHOR: Diana Kunde]
(http://dallasnews.com/business/30033_DIGITAL.html)

DOES EVERYONE NEED TO BE ONLINE?
Issue: Digital Divide
[Op-Ed] More than anything else, the digital divide reflects the education
and income divide. Poor and poorly educated people are less likely to own
and use computers than the info-rich rich. Yet, President Clinton wants to
make everyone a Net-head. In his proposed budget, the President would
allocate about $50 million for hardware, software and access fees to wire
the poor. All this rests on the notion that expanding Internet access
requires government action. It assumes that the bridge to the 21st century
spans a "digital divide" between rich and poor, white and non-white, and
some people can't make it across on their own.
[SOURCE: SAN JOSE MERCURY NEWS (2/10), AUTHOR: Joanne Jacobs]
(http://http://www.mercurycenter.com/svtech/news/viewpoints/docs/jj021000.ht
m)

PRIVACY

NEW COMPLAINTS ON TRACKING OF WEB SURFERS
Issue: Internet/ Privacy
Thursday saw much activity related to the issue of how much companies can
track Web surfers. The Electronic Privacy Information Center, a privacy
group, asked the Federal Trade Commission to investigate online advertising
giant DoubleClick under traditional deceptive and unfair trade practice
laws. The group said the company is illegally tracking
Internet users and combining their surfing habits with detailed personal
profiles contained in the national marketing database of a company it
recently merged with, Abacus. And Senator Robert Torricelli, a New Jersey
Democrat, introduced a bill that would regulate such tracking technology,
known as "cookies." Additionally, the chairman of the Federal Trade
Commission, Robert Pitofsky, hinted for the second time in as many days that
his agency might rethink its stance on legislation regulating how Web sites
would collect and maintain information collected about users.
[Source: NY Times (Cyber Times) Author: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/02/cyber/articles/11cookies.htm)
See Also:
FTC CHIEF SAYS E-COMMERCE INDUSTRY SHOULD RECONSIDER PRIVACY-RULES STANCE
Issue: Privacy
Federal Trade Commission Chairman Robert Pitofsky warned that the e-commerce
industry's push for "self-regulation" of consumer privacy issues in leu of
federally mandated privacy standards may backfire. "Without comprehensive
federal legislation, it is possible that something of a vacuum will be
created and states may enter, not always with consistent proposals", said
Chairman Pitofsky in a recent speech. The e-commerce industry has come
under fire for its "self-regulation" stance amid reports of increasingly
sophisticated data-collection methods being employed on the Internet.
Activities by Congress members is evidence that the Internet privacy issue
has risen to the top of Washington's political agenda. Senate Minority
Leader Tom Daschle assembled a Senate Democratic Privacy Task Force, to be
headed by Senator Pat Leahy. GOP Senator Richard Shelby announced the
formation of a bipartisan Congressional Privacy Caucus.
[SOURCE: Wall Street Journal (B3), AUTHOR: Glenn Simpson]
(http://interactive.wsj.com/articles/SB950228755854557684.htm)

SECURITY

HACKERS, SECURITY PROS CALL WEB ATTACKS VANDALISM CONSULTANTS PONDER MOTIVE
Issue: Internet
While the motive for the latest attacks against popular commercial Web sites
remains unclear, security professionals and those who identify themselves as
hackers who were interviewed during the past few days argue that the
perpetrators are not hackers but criminals, acting out of greed, political
motives -- or just plain psychological problems. Hackers, according to
experts, tend to be white, middle-class boys who are socially awkward, quite
bright, mechanically proficient and curious --
but not malicious. "A hacker is nothing more than an engineer of software
looking for its limits, understanding the good, the bad and the ugly," says
Winn Schwartau, security consultant and author of Information Warfare and
other books about computer security. "What we're seeing today is nothing
more than common vandals." These may seem fine distinctions, but labeling
all hackers criminals could lead to excesses by law enforcement, experts
say. "It's like saying every locksmith is a criminal because he has the
ability, skill or talent," says another hacker who goes by the online name
Space Rogue.
[Source: USAToday (13A) Author: M.J. Zuckerman]
(http://www.usatoday.com/usatonline/20000211/1929994s.htm)

HACKER ATTACKS ON THE INTERNET
Issue: Security
[Editorial] The recent hacker attacks, which have disrupted some of the
Web's most popular sites, have disrupted the stability of the newly emerging
cyberworld. Because the Internet is not owned or regulated by any government
or company, we have free expression, and commercial transactions and
political activity flourish. These very qualities of openness and freedom,
however, are what make the Internet vulnerable to attack. "The worst
response to these attacks," say the authors, "would be for government to
introduce requirements for the Internet that may destroy the freedom of
operation that makes it work so well." They suggest that it is premature to
consider regulations requiring users to identify themselves as they surf the
net. Instead, it is suggested that businesses operating on the Internet take
the lead over government in developing defenses against malicious hackers.
[SOURCE: New York Times (A30), AUTHOR: New York Times]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/11web.html)

WIRELESS

CELL-PHONE FIRMS TESTING "CALLER PAYS"
Issue: Telephony
When you call someone's home or work number, the person receiving the call
doesn't have to pay anything. But place a call to a cellular phone, and the
person receiving the call is charged by the minute. Mobile-phone users with
Bell Atlantic Corp. may soon have the option of having the person making the
call foot the entire cost of those calls. Callers placing a call to a
cellular customer who are part of Bell Atlantic's "Call Me" plan are greeted
with an announcement that tells them they can hang up to avoid any charges.
If they remain on the line, they are told that their telephone bills will be
charged 25 cents a minute if Bell Atlantic is their local phone carrier, or
35 cents a minute if the charges should be billed to a credit card. This
past summer, the Federal Communications Commission voted to allow wireless
companies to introduce it as an option to consumers in the United States.
The federal regulatory agency is expected to release final rules on the
issue in a matter of weeks.
[SOURCE: San Jose Mercury News, AUTHOR:]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/collec021100.ht
m)

INTERNATIONAL

NTT'S WEB PRICING IS CALLED POSSIBLY PREDATORY AT U.S.-JAPANESE TELECOM
TRADE FIGHT DEEPENS
Issue: International/Competition
Nippon Telegraph & Telephone Corporation sharply cut its Internet service
prices in response to criticism that its prices had been impeding the
development of the Internet in Japan. And while the U.S. should consider
this a victory since they have long been pressuring NTT to reduce its
prices, saying that it would help consumers and give foreign companies a
better chance of cracking the market, a U.S. official said that NTT's cuts
may represent predatory pricing. "You shouldn't price in a predatory manner
if you're a dominant carrier." Instead, the U.S. would like to have seen NTT
reduce the interconnection fees it charges to rival carriers when those
carriers use parts of NTT's network of phone lines. That would encourage
NTT's rivals to offer a fixed-rate Internet service of their own; something
none of them currently do because they are paying too much of their revenues
to NTT in the form of interconnection fees. The debate on interconnections
fees is threatening to become a major U.S.-Japan trade conflict. The U.S.
is seeking a 41% reduction on the standard type of interconnection fee while
NTT says it can only afford a 22.5% cut over several years.
[SOURCE: Wall Street Journal (A10), AUTHOR: Peter Landers]
(http://interactive.wsj.com/articles/SB950213952942344257.htm)

BARRIERS CAN SLOW NET INDUSTRY IN ASIA
Issue: Internet/International
Asia's Internet industry faces more, and often higher, barriers than the
industry in the USA, analysts say. These barriers include the fact that a
smaller percentage of people in Asia own personal computers and land-line
telephones. Additionally, credit card use, which is so important for
e-commerce, is much less common in Asian countries than it is in the US or
Europe. There are also problems with government reluctance to allow the
Internet to go about its business unchecked. For instance, China's recent
vow to crack down on Internet companies that publish "state secrets" has
raised a few eyebrows in the industry.
[Source: USAToday (2B) Author: Julie Schmit]
(http://www.usatoday.com/usatonline/20000211/1930036s.htm)

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

(c)Benton Foundation 2000. Redistribution of this email publication - both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation - primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone
doesnot represent the tone of the original articles. Headlines are compiled
by Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), Nancy Gillis (nancy( at )benton.org), and
Harry Chauss (harry( at )benton.org) - we welcome your comments.

The Benton Foundation works to realize the social benefits made possible by
the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape the
emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration projects,
media production and publishing, research, conferences, and grantmaking,
Benton probes relationships between the public, corporate, and nonprofit
sectors to address the critical questions for democracy in the information
age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

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

(c)Benton Foundation 2000. Redistribution of this email publication - both
internally and externally -- is encouraged if it includes this message.

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

Communications-related Headlines for 2/10/2000

INTERNET
Hacker Assaults Expose Internet's Weaknesses (WP)
For Extra Cheese, Ctrl+Pizza (NYT)
E-Communities Build New Ties, but Ties That Bind (NYT)

PRIVACY
Businesses Target State Privacy Initiatives(WSJ)

CABLE
Cable Waits For NAACP Kudos (USA)

INTERNATIONAL
EU Launches Antitrust Probe of Microsoft's Windows 2000 (WSJ)
India Again is Alluring to Foreign Telecoms (WSJ)

INTERNET

HACKER ASSAULTS EXPOSE INTERNET'S WEAKNESSES
Issue: Internet
Hackers disrupted services on more of the Web's most popular sites
yesterday, even as the FBI hunted for the culprits and Websites worked to
shore up their defenses. ZDNet, a popular tech news site was down for more
than two hours and trading was stopped on Etrade, the No. 2 online broker,
for more than an hour, thanks to another round of "denial of service
attacks." These attacks involve a single hacker gaining control of several
computers and using them to send messages to many more computers,
instructing them, in turn, to send thousands of bogus requests to the target
site, overwhelming their systems. The Justice Department admitted yesterday
that it was at a loss to explain either the source of the attacks or the
motives behind them. The head of the FBI's computer crimes unit, Ron Dick,
said yesterday that the hacks were serious federal crimes and would be fully
investigated.
[SOURCE: Washington Post (A1), AUTHOR: John Schwartz, Ariana Eunjung Cha and
David A. Vise]
(http://www.washingtonpost.com/wp-dyn/business/A32445-2000Feb9.html)
See Also:
HACKERS' WEAPON EXPLOITS INTERNET'S OPEN NATURE
[SOURCE: Wall Street Journal (B1), AUTHOR: Lee Gomes and Thomas Weber]
(http://interactive.wsj.com/articles/SB950140309420788348.htm)
THE STRENGTH OF THE INTERNET PROVES TO BE ITS WEAKNESS
[SOURCE: New York Times (C1), AUTHOR: John Markoff]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/10net.html)

E-COMMUNITIES BUILD NEW TIES, BUT TIES THAT BIND
Issue: Internet
"The current primitive virtual communities," claims Amitai Etzioni "are
stronger in several ways than the real thing." Etzioni argues with the
notion that only real communities can be self-policing, and foster trust and
intimacy. The auction site Ebay.com achieves virtual self-policing, for
example, by asking both sellers and buyers to rate one another. Intimacy and
trust is built in other types of e-communities when the number of
participants is limited, admission is controlled to foster affinity, and
members voluntarily surrender their anonymity. "But even if one or two of
these elements are missing," says Etzioni, "online communities can still
allow people to build reputations and trust and foster intimacy, much like
offline groups. However, they do so in different ways and, above all, can
reach many more people, day or night, rain or shine.
[SOURCE: New York Times (E7), AUTHOR: Amitai Etzioni (sociologist at George
Washington University)]
(http://www.nytimes.com/library/tech/00/02/circuits/articles/10comm.html)

FOR EXTRA CHEESE, CTRL+PIZZA
Issue: Internet
Net appliances, a new class of down computers are being positioned to allow
the 52 percent of American homes without a PC to surf the web: and to do it
inexpensively. The first such device to hit the market, the i-opener, which
retails for around $299, even features a function key that automatically
calls up a Website allowing the consumer to order online for delivery. Other
features include function buttons for weather and news. Intel, Microsoft,
Compaq and Acer are all set to launch their own "netpliances" by summer in
an effort to capture a part of what is a very large, and largely untapped,
market. The devices are set to cost between $200 and $400. Early users of
the machines say that they are impressed with the speed and ease of use that
the new devices provide. "If I want to just send e-mail, check someone on
the Web, order tickets, call out for pizza, I do it on the i-opener. . . I
don't have to sit down and wait for it to boot up, get the right program and
wait for a few windows to open up," said Chuck Martin, of Austin Texas who,
along with his wife and two children, has been using the device to augment
their aging computer since last December. Still, despite the warm reception,
the devices are not perfect, they are highly specialized, allowing their
users only Web access and email: no word processing or gaming programs are
available, and because the machines lack CD-ROMs and disk drives, none will
be. Also, while the i-opener is capable of handling streamming audio, it
can't access streamed video, shutting users out of one of the most popular
new Internet functions.
[SOURCE: New York Times (E1), AUTHOR: Michel Marriott ]
(http://www.nytimes.com/library/tech/00/02/circuits/articles/10nett.htm)

CABLE

CABLE WAITS FOR NAACP KUDOS
Issue: Cable/Diversity
As NAACP blasts the broadcast networks for their lack of racial diversity,
the cable networks wait for praise for their inclusive programming. "Cable
is leading the (broadcast) networks in a number of arenas," says Tavis
Smiley, talk-show host of BET Tonight with Tavis Smiley. "Not the least of
which is understanding, appreciating and embracing diversity in its
programming." HBO has won two best-movie Emmys and a Golden Globe for recent
black-teamed movies: _Miss Evers' Boys_ and _A Lesson Before Dying_, and
_Introducing Dorothy Dandridge_. ShowTime is the home of _Linc's_, a weekly
series with a mostly black cast set in Washington, D.C., and this summer
will be adding a weekly series _Soul Food_, based on the 1997 film about a
black family. s Showtime programming chief Jerry Offsay says the pay-TV
network has included black issues because it's good business. Some 23% of
Showtime subscribers are black, he reports
[SOURCE: USAToday (4D), AUTHOR: Jefferson Graham]
(http://www.usatoday.com/usatonline/20000210/1925163s.htm)
PRIVACY

BUSINESSES TARGET STATE PRIVACY INITIATIVES
Issue: Privacy
At least 17 states are choosing to adopt stricter privacy laws than the
broad privacy laws being completed by federal regulators as part of last
year's financial services overhaul legislation. In response, businesses have
formed a coalition in an attempt to blunt the states' initiatives and push
Congress to pre-empt the states' actions. "The worst thing to happen would
be for each state to pass legislation and have a patchwork of rules to
follow," said Allen Caskie of the American Council of Life Insurers. The
coalition's members include General Electric, Fidelity Investments, Visa,
and others. Under the new federal laws, firms that share customers' personal
data with independent third parties must mail copies of their privacy
policies to the customers and inform them that they have the option of not
having their personal data shared. The states want to put the onus on the
companies to seek the permission of customers prior to sharing their
personal data with third parties. When the financial services legislation
was nearing completion last year, 26 state attorneys general signed a letter
to the Clinton administration objecting that the bill's privacy laws didn't
go far enough. They are part of the group of state officials spearheading
tougher state statues. Congress has indicated that it doesn't want to
rewrite last year's hard-fought overhaul law, which hasn't been implemented
yet.
[SOURCE: Wall Street Journal (A2), AUTHOR: Michael Schroeder]
(http://interactive.wsj.com/articles/SB950137172974913438.htm)

INTERNATIONAL

EU LAUNCHES ANTITRUST PROBE OF MICROSOFT'S WINDOWS 2000
Issue: Antitrust/International
As if Microsoft doesn't have enough regulatory problems here at home, the
European Commission has started a broad investigation into the allegations
that Microsoft's Windows 2000 software could allow the company to dominate
electronic commerce. Complaints have arisen that Windows 2000 products
Active Directory and Intellimirror are only fully functional when Windows
2000 is running on both ends of the network connection, making it impossible
for a PC running Windows 2000 to interact with a server not running
Microsoft software. Any incompatibility with servers that host Web sites
could allow Microsoft to leverage its dominance into the server market and
"ultimately e-commerce" says Mario Monti, the European commissioner
responsible for antitrust affairs. One of the complainants that prompted
this investigation is Sun Microsystems. Microsoft accused Sun of using EU
authorities as pawns in a battle for supremacy in server software.
Microsoft's world-wide rollout of Windows 2000 is scheduled for Feb. 17th.
There are no plans to postpone the rollout.
[SOURCE: Wall Street Journal (A13), AUTHOR: Brandon Mitchener and Kevin
Delaney]
(http://interactive.wsj.com/articles/SB950105444581029623.htm)

INDIA AGAIN IS ALLURING TO FOREIGN TELECOMS
Issue: International
Indian telecom regulators took an important step this week by allowing eight
private Internet providers to build their own international
satellite-transmission facilities -- a move that breaks the state's monopoly
on overseas telecommunications. "This sends a strong political message that
the hostility between the government and industry must be reduced," says the
local head of a Western telephone company, who asked not to be identified.
Several foreign telecommunications firms, including AT&T, British
Telecommunications and Motorola say that recent government steps to clarify
the powers of the industry regulator and new opportunities in services such
as Internet access are nudging India's telecommunications market toward
recovery. In an other recent step towards reform, the newly elected
government has also revamped the regulator to give the body jurisdiction
over all pricing issues and created a separate tribunal to settle industry
disputes.
[SOURCE: Wall Street Journal (A13), AUTHOR: Jonathan Karp]
(http://interactive.wsj.com/articles/SB950126755645094751.htm)

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

(c)Benton Foundation 2000. Redistribution of this email publication - both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation - primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone
doesnot represent the tone of the original articles. Headlines are compiled
by Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), Nancy Gillis (nancy( at )benton.org), and
Harry
Chauss (harry( at )benton.org) - we welcome your comments.

The Benton Foundation works to realize the social benefits made possible by
the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape the
emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration projects,
media production and publishing, research, conferences, and grantmaking,
Benton probes relationships between the public, corporate, and nonprofit
sectors to address the critical questions for democracy in the information
age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 2/9/2000

ED TECH
Making the Most of the Internet's Potential for Education
(CyberTimes)

DIGITAL DIVIDE
Center in Capital Called a Success in Spanning the Technology Gap
(NYT)

INTERNET
McCain Camp Enjoys a Big Net Advantage (WP)
Charity Watchdogs Warn Of Potential For Online Fraud (NYT)
Web Site Aims to Attract Latin American Teens (WSJ)

ECOMMERCE
Hackers Hit EBay, Buy.com Sites (WP)
Books, Records Would Escape Sales Tax in Stores, on Web in Proposal
to Panel (WSJ)

BROADCASTING
Ruling Stops IcraveTv Transmissions To USA Plaintiffs Say Web Site
Stole, Broadcast shows (USA)
Chris-Craft Unit Sues to Block Viacom From Proceeding With CBS
Acquisition (WSJ)

EMPLOYMENT
More Foreign High-Tech Workers Sought (NYT)

DIGITAL DIVIDE

CENTER IN CAPITAL CALLED A SUCCESS IN SPANNING THE TECHNOLOGY GAP
Issue: Digital Divide
Gateway, a community and job-training center in Washington, D.C. is
affecting lives. If not for Gateway, Patricia Fisher would still be earning
minimum wage, relying on rental assistance and anxious for a better life for
herself and her son. After a free three-month office technology program at
Gateway, Ms. Fisher earns more than twice her previous salary. "When I went
into this program, it supported me 100 percent. And that was what made me
move on with my life," said Ms. Fisher. Gateway's nonprofit parent,
Community Preservation and Development Corp, is wiring 800 housing units at
Edgewood Terrace, a low-income housing community in the northwest section of
Washington. The company plans to install computers in every apartment by
2002. "This is beyond access, this is control," said Leslie Steen, president
of CPDC. "Residents who have control of the technology will end up having
control of the community." CPDC's approach to lift people out of poverty has
drawn praise from federal officials. About 80 District of Columbia residents
take classes on any given day in the modern classrooms of the Gateway
center, which resemble a small conference center.
[SOURCE: Cybertimes, AUTHOR: Raju Chebium]
(http://www.nytimes.com/library/tech/00/02/cyber/articles/09divide.html)

EDTECH

MAKING THE MOST OF THE INTERNET'S POTENTIAL FOR EDUCATION
Issue: Ed Tech
The Congressional Web-Based Education Commission was set up by Congress in
1998 to study how the Internet can best be used for education. It will study
such issues as distance learning, how best to ensure that students across
the country can be assured equal access to technology, and how to persuade
industry to provide educational content. The 16 member commission, headed by
Senator Bob Kerrey (D-Nebraska), will share information with Congress as it
begins a re-examination of the Elementary and Secondary Education Act, an
important law underpinning federal education initiatives at the grade school
and high school level. The law, which Congress must re-authorize every five
years, provides about $1.5 billion each year for technology-related
education programs. The commission will also set up a Web site which it
hopes will provide a major forum for debate and public discussion of the
issues raised by the commission as it holds about five more hearings across
the country this year. First and foremost on the commission's agenda,
however, is to complete a report on how the Web can be used for its highest
educational purpose. The report will be completed by November 16 and
presented at that time to Congress and the President.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/00/02/cyber/education/09education.html)

INTERNET

MCCAIN CAMP ENJOYS A BIG NET ADVANTAGE
Issue: Political Discourse
An hour after the announcement of Sen. John McCain's win in the New
Hampshire primary was posted to his Web site, $20,000 worth donations had
come in online. Since his victory in the nation's first primary, McCain has
raised $2.2 million over the Internet, recruited 26,000 new volunteers -
and, in the process, rewritten the rules for political campaigning. For
McCain, the Internet has helped translate the New Hampshire bounce into hard
cash, which is instantly eligible for federal matching funds. "McCain could
capitalize in a way that Gary Hart and Paul Tsongas could not" when they won
Democratic state presidential primaries in 1984 and 1992, said Michael
Cornfield, a George Washington University political scientist who studies
the role of new media in campaigns. Candidates began using the Web in the
1996 election, but at that time the sites included little more than
candidates' photos and biographies. Since then, thanks in part to
developments in technology and also to Jesse Ventura's effective use of the
Internet in his campaign to become governor of Minnesota, use of the Web has
expanded markedly. Overall, McCain's campaign has raised $3.7 million
online, almost one-fourth of its total $16 million raised. Moreover, McCain
is using the Internet to keep in touch with volunteers. Some 86,000 people
now get daily campaign updates and are asked to make telephone calls to
recruit others.
[SOURCE: Washington Post (A1), AUTHOR: John Mintz]
(http://www.washingtonpost.com/wp-dyn/articles/A27893-2000Feb8.html)

CHARITY WATCHDOGS WARN OF POTENTIAL FOR ONLINE FRAUD
Issue: Internet/Philanthropy
Last week's Alaska Airlines crash has prompted charity watchdog groups to
renew their warnings about the dangers of donating money over the Internet.
Alaska Airlines spokesman Jack Evans said that at least two suspect sites
that purportedly raised money for the victims' families shut down after the
airline threatened to sue. "In the online world, with a graphics program and
a Web authoring tool, you can make Web sites look pretty efficacious and
legitimate." Would-be donors should ask lots of questions about how
donations will be spent, said Bennett Weiner, a vice president at the
Council of Better Business Bureaus.
[SOURCE: New York Times (Online), AUTHOR: The Associated Press]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/09online-chariti
es.html)

WEB SITE AIMS TO ATTRACT LATIN AMERICAN TEENS
Issue: Internet
Loquesea.com, a Spanish language Web site, is part of a new wave of
specialty sites that is trying to cash in on the Internet's fast growth in
Latin America, where approximately 40% of Internet traffic is from the
under-30 crowd. Loquesea, which is Spanish for "whatever", is trying to
gain attention by offering bisexual chat rooms, electronic-music fan clubs,
and online greeting cards with messages such as "I hate you." The site's
challenge is to keep up this fear-and-loathing tone while appealing to
mainstream kids who will be the region's future consumers. "Coca-Cola is
interested in the 18-year-old. These brand managers are desperate to reach
their customers," said loquesea's CEO Carlos Lizarralde. "We'll be to young
kids in Latin America what Martha Stewart is to middle-class women in the
US."
[SOURCE: Wall Street Journal (A22), AUTHOR: Pamela Druckerman]
(http://interactive.wsj.com/articles/SB950050238918299129.htm)

RULING STOPS ICRAVETV TRANSMISSIONS TO USA PLAINTIFFS SAY WEB SITE STOLE,
BROADCAST SHOWS
Issue: Internet/Broadcasting
On Tuesday, Canadian Web site iCraveTV was ordered by a Pittsburgh judge to
stop sending intercepted TV programming into the USA. U.S. District Court
Judge Donald Ziegler agreed with NFL, NBA and four networks who claimed that
iCraveTV was stealing programming and pumping it into U.S. markets in
violation of U.S. copyright law. The judge issued a preliminary injunction
that prevents iCraveTV from putting broadcasts on its site if U.S. viewers
can see them. In a statement, iCrave's founder Bill Craig, said he will try
to implement technology that would keep the broadcasts inside Canada.
Currently, there is no such technology that can stop the Internet at a
border.
[SOURCE: USAToday (1C), AUTHOR: Kevin Maney]
(http://www.usatoday.com/usatonline/20000209/1921069s.htm)

CHRIS-CRAFT UNIT SUES TO BLOCK VIACOM FROM PROCEEDING WITH CBS ACQUISITION
Issue: Ownership
BHC Communications Inc., a unit of Chris-Craft Industries, filed suit
yesterday in New York State Supreme Court claiming that the Viacom-CBS deal
violates a noncompete clause in the Viacom and Chris-Craft Industries
partnership agreement for the UPN television network. Under the noncompete
clause, Viacom may not "own any interest, financial or otherwise" in a
competing network. As a result of the CBS acquisition, Viacom would control
the CBS television network. Viacom has been seeking to dissolve the UPN
partnership by offering to buy BHC's 50% stake in UPN, or alternatively
offering to sell its UPN interest to BHC. Viacom and CBS said in a joint
statement that the noncompete clause in the UPN partnership agreement wasn't
applicable because of Viacom's offer to buy or sell its interest in UPN.
They went on to claim that this lawsuit was, "transparently without merit
and will have no impact on the timing of the closing" of the merger. Viacom
and CBS hope to complete their merger by late March or early April of this
year.
[SOURCE: Wall Street Journal (B12), AUTHOR: Martin Peers]
http://interactive.wsj.com/articles/SB950056268148631637.htm

ECOMMERCE

BOOKS, RECORDS WOULD ESCAPE SALES TAX IN STORES, ON WEB IN PROPOSAL TO PANEL
Issue: E-Commerce
The "business caucus" group of the federal Advisory Commission on Electronic
Commerce put forward a proposal yesterday that would keep the sales of
books, music, records and other information and entertainment products
exempt from taxation both on the Internet and in stores. To make up for the
loss in sales tax revenue on these items, state governments would gain new
authority to collect other sales taxes on the Internet and on mail-order
commerce across state lines. The proposal would call on Congress to enact
legislation prohibiting taxes on such products as recorded music and books;
to extend the moratorium on new Internet taxes for five years; and to ban
taxes on Internet access. The "business caucus" is a group of six companies
seen as the swing-vote bloc between protax and antitax factions on the
panel. Representatives from Charles Schwab, America Online, MCI Worldcom,
AT&T, Time Warner, and Gateway make up the "business caucus" group. The
Advisory Commission's final meeting will be next month in Dallas, Texas.
[SOURCE: Wall Street Journal (B8), AUTHOR: Glenn Simpson]
(http://interactive.wsj.com/articles/SB950064857303314114.htm)

HACKERS HIT EBAY, BUY.COM SITES
Issue: E-commerce
Four popular Web sites were hit with "denial of service" attacks yesterday,
on the heels of a similar attack on Yahoo on Monday. A "denial of service"
attack involves flooding computers with so many fake requests for data that
legitimate users are effectively shut out. The attacks, on eBay, Amazon.com,
CNN.com and Buy.com began at around 1:50 p.m. Eastern Standard Time, when
monitors at Buy.com noted a sharp rise in Web traffic, even as the company's
stock rose with its initial public offering. "The IPO did great and then
somebody slammed my site," said Gregory J. Hawkins, Buy.com chief executive.
It took Buy.com about three hours to restore service. Around an hour after
Buy.com recovered, eBay was hit with a similar attack, bringing down its
site until late last night. Then, between 7:00 and 8:00 p.m. CNN.com and
Amazon.com's sites were hit with their own attacks. So far, no one has
claimed responsibility for the strikes, which did not cause any damage to
the sites' internal systems, but which will likely cost the companies
revenue because of the downtime. Speculation about who is carrying out the
attacks was rampant on hacker chat rooms and e-mail discussion lists
yesterday. Stuart McClure, author of "Hacking Exposed" and a computer
security consultant in Southern California, said he believes the perpetrator
will pop up in the next few days - not because experts from the three
companies would be able to chase him or her down but because hackers like to
brag. "The point is to prove to . . . their buddies that they can do it," he
said.
[SOURCE: Washington Post (E1), AUTHOR: Ariana Eunjung Cha and John Schwartz]
(http://www.washingtonpost.com/wp-dyn/articles/A26923-2000Feb8.html)
See also:
HACKERS ATTACK MAJOR INTERNET SITES, CUTTING OFF AMAZON, BUY.COM, EBAY
[SOURCE: Wall Street Journal (A3), AUTHOR: Khanh Tran and Rhonda Rundle]
(http://interactive.wsj.com/articles/SB950056284596574936.htm)

EMPLOYMENT

MORE FOREIGN HIGH-TECH WORKERS SOUGHT
Issue: Employment
High-tech companies, desperate for workers, are pushing Congress to expand
an immigration program that will allow them to hire more high-tech workers.
The number of high-tech jobs nationwide grew from about 4 million in 1990 to
more than 4.8 million in 1998, according to the Bureau of Labor Statistics.
Sen. Orrin Hatch (R-UT), Phil Gramm (R-TX) and Spencer Abraham (R-MI) plan
to introduce a bill to increase the number of H-1B visas -- six-year,
temporary visas granted to foreigners with college degrees -- to 200,000
visas a year. Unions oppose a raise in the visa limit. "We have an abundance
of well-educated college people," said Jack Golodner, president of the
AFL-CIO's Department of Professional Employees. "There are industries that
like to flood the market of our college graduates because they want to keep
the salaries from going up."
[SOURCE: New York Times (Online), AUTHOR: The Associated Press]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/09visa.html)

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

(c)Benton Foundation 2000. Redistribution of this email publication - both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation - primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone
doesnot represent the tone of the original articles. Headlines are compiled
by Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis (nancy( at )benton.org) - we
welcome your comments.

The Benton Foundation works to realize the social benefits made possible by
the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape the
emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration projects,
media production and publishing, research, conferences, and grantmaking,
Benton probes relationships between the public, corporate, and nonprofit
sectors to address the critical questions for democracy in the information
age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 2/8/2000

COMPETITION
Telecom's Future: More Competition, Cheaper Prices (USA)
Local Phone Service is Hot (SJM)

TELEVISION
PBS Names Turner Broadcasting Executive as Its New President (NYT)
Does TV Cause Teens to Drink? (USA)
Antismoking Ads Aimed at Teens Hit TV (WSJ)

INTERNET
Do Sponsors Sway Health Web Sites? (WSJ)
Little Net Firm Rocks TV Giants Sending Channels On Web Awaits Court
Ruling Today (USA)
Commerce Department Seeks Funds To Improve Tracking of E-Commerce
(WSJ)

WIRELESS
Japanese Going Online but Leaving PCs Behind (WP)
AOL Europe Tests System to Allow Wireless Access to Online Services
(WSJ)

MERGERS
Rogers Communications to Issue Stock Valued at $3.4 Billion for
Videotron (WSJ)

COMPETITION

TELECOM'S FUTURE: MORE COMPETITION, CHEAPER PRICES
Issue: Competition
(FCC Chairman William Kennard discussed with USA TODAY's editorial board the
impact of the 1996 Telecommunications Act on telephone service, cable, video
and broadcast services.) While Chairman Kennard credited the 1996 Act with
lowering costs and increasing choices for telecommunications' consumers, he
said that the cable television industry and the local phone market are two
sectors still lacking in competition. When it comes to local telephone
service, "Most of the competition is coming to the high-end business user,"
said Kennard. The Chairman says that when television goes digital, people
will be able to interact with their televisions much like they interact with
their computers - in what he calls Interactive Personal TV. Chairman Kennard
also predicted that satellite-based telephone service could become an
important broadband capacity to rural and remote areas around the world. "We
forget sometimes that 50% of the people on this planet have never made a
phone call," he noted. Someone, he said, will provide phones to these
people. "It's not just a question of creating investment opportunities for
companies in the developing world, but more of a moral obligation."
[SOURCE: USAToday (A17), AUTHOR: USAToday Editorial Staff]
(http://www.usatoday.com/usatonline/20000208/1917456s.htm)

LOCAL PHONE SERVICE IS HOT
Issue: Telephony/Competition
Consumers in markets such as New York, Dallas, and Northern California are
now able to choose their local phone company for the first time since the
earliest days of telephone history. While competition in the local loop is
bringing benefits in the form of lower prices and a host of new services;
consumers are also confused by the wide array of calling plans and they're
annoyed by the technical and billing glitches that come as companies roll
out their local service. Telephone companies are spending billions of
dollars to gain an edge in this new era. They're experimenting with a
variety of ways to deliver local service, including putting phone calls on
cable lines and using new kinds of wireless and fiber-optic networks. This
effort has led to a marketing war between companies seeking a payoff by
adding new customers. This has added to the number of telemarketing calls
and advertisements consumers receive for calling plans that may not
initially seem like an improvement over existing services. "We're still in
the middle of the noisy, awkward transition," said Jeff Kagan, a
telecommunications analyst. "Nobody said it was going to be neat and tidy."
[SOURCE: San Jose Mercury News, AUTHOR: Chris O'Brien]
(http://www.mercurycenter.com/svtech/news/indepth/docs/compet020800.htm)

TELEVISION

PBS NAMES TURNER BROADCASTING EXECUTIVE AS ITS NEW PRESIDENT
Issue: Public Broadcasting
The Public Broadcasting Service yesterday announced the appointment of Pat
Mitchell, a longtime news producer and executive for Turner Broadcasting, as
its president. Mitchell says that one of her main challenges will be to lead
an organization that has a longstanding conflict between its central
programming arm and its member stations, almost 350 of them, many of which
believe they should control their own program schedules. Ms. Mitchell said
she hoped to turn that situation into an advantage by finding ways to make
use of attractive local programming on a national level. Besides being the
first woman to lead PBS, she will be the first former full-time television
producer to head the organization. "I know how the process works," she said.
"I think I can help in making the process of getting shows on the air work
even better."
[SOURCE: New York Times (A16), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/national/pbs-president.html)

DOES TV CAUSE TEENS TO DRINK?
Issue: Television
A study released Monday suggests that alcohol-glamorizing TV shows and
commercials promote drinking in some teens. TV watching is linked to teen
drinking "for those who think alcohol will make them happy and popular" says
Washington State University media researcher, Erica Weintraub Austin, the
study's author. These youngsters were one-third more likely than others to
be drinkers and even bingers. They tended to find the tube an accurate
reflection of reality, possibly because they see drinking at home, Austin
says. Parental attitudes toward television programs seemed also to play a
role in whether or not teens drink. Youngsters who said their parents often
criticize TV programming saw less benefit in alcohol and were less likely to
drink; those who said their parents praised shows, characters or commercials
tended to think alcohol was cool, and to drink it.
[SOURCE: USAToday (8D), AUTHOR: Clay Chandler]
(http://www.usatoday.com/usatonline/20000208/1917202s.htm)

ANTISMOKING ADS AIMED AT TEENS HIT TV
Issue: Advertising TV
The largest antismoking campaign, being financed by $1.5 Billion from the
1998 legal settlement between tobacco companies and all 50 states, debuted
on television last night. The campaign is orchestrated by the nonprofit
organization called the American Legacy Foundation, who is planning on
distributing the campaign across TV, radio, magazines, and the Internet.
The centerpiece of the campaign is the building of the brand called "Truth"
which will compete with cigarette makers Marlboro, Camel and Lucky Strike
brands. "We want to create a brand that, over the long haul, kids can
relate to," says Pete Favat from Arnold Communications, the lead advertising
agency for the American Legacy Foundation. This strategy is based on the
concept of "counterbranding", first used in a Florida state antismoking
campaign which is credited with creating a 10% reduction in smoking among
teenagers in the state. Charles Wolfe, the creator of the Florida campaign,
is American Legacy's chief operating officer. The campaign is so large that
is will dwarf AIDS education and outspend the government's high profile
antidrug campaign.
[SOURCE: Wall Street Journal (B10), AUTHOR: Gordon Fairclough]
(http://interactive.wsj.com/articles/SB949959160992358216.htm)

INTERNET

DO SPONSORS SWAY HEALTH WEB SITES?
Issue: Internet/Health
Drug companies are spending aggressively to build a dominant marketing
presence on the Internet, sometimes by providing educational grants to
health web sites that also showcase their products. The FDA's stand has been
that sponsors shouldn't dictate content and they, along with the Federal
Trade Commission, have been monitoring grant funded web sites to see if they
will run content that is adverse to a sponsors interest. "If you don't do
what the sponsor wants, how much more business do you think you're going to
get?" asked a former FDA official. The breast cancer site from HealthTalk
Interactive features a lengthy section on the drug Herdeptin, made by the
site's sponsor Genentech, Inc. HealthTalk's Hepatitis C site includes a
testimonial by a patient that controls her infection with a product made by
Amgen, Inc., the funder of that site. A member of HealthTalk says, "We
cover breakthroughs, and those happen to include the products of the
sponsor." Jeffery Gibbs, the Washington DC based attorney for HealthTalk,
says, "Balanced and fair doesn't necessarily mean neutral."
[SOURCE: Wall Street Journal (B7), AUTHOR: Marilyn Chase]
(http://interactive.wsj.com/articles/SB949971114152758310.htm)

LITTLE NET FIRM ROCKS TV GIANTS SENDING CHANNELS ON WEB AWAITS COURT RULING
TODAY
Issue: Internet
CBS, Fox, Walt Disney, the NFL and at least 10 other entertainment industry
superpowers have carpet-bombed lawsuits on iCraveTV, a Canadian company that
put live network TV on the Internet for the first time. "Broadcasters have
told me that if they lose this case, it's the end of the world," says Blair
Levin, a consultant and former official at the Federal Communications
Commission. "It's one of the largest and most brazen thefts of intellectual
property ever committed in the United States," says Jack Valenti of the
Motion Picture Association of America. While U.S. law strictly prohibits
picking up TV signals and retransmitting them, Canadian law allows any
entity to retransmit a TV broadcast as long as it is not altered and is
retransmitted only within Canada. The TV industry suit, however, claims that
the vast majority of iCraveTV users were Americans. Today, a federal judge
in Pittsburgh will decide whether to order iCraveTV to shut down, and Rep.
Billy Tauzin, (R-LA), has called for a congressional hearing on the
company's ordeal.
[SOURCE: USAToday(B1), AUTHOR: Kevin Maney]
(http://www.usatoday.com/usatonline/20000208/1917792s.htm)

COMMERCE DEPARTMENT SEEKS FUNDS TO IMPROVE TRACKING ON E-COMMERCE
Issue: Commerce
The Commerce Department's Bureau of Economic Analysis, which compiles
government indicators such as the gross domestic product, is seeking $3.5
million under President Clinton's fiscal 2001 budget plan, specifically to
track e-commerce. The request represents a major step in the government's
effort to improve its ability to determine how online commerce is reshaping
the nation's economy. "This is about trying to capture e-commerce's impact
on GDP and across the economy's sectors," Steven Landfeld, director of the
Bureau of Economic Analysis, said. "We try to do that now, but the question
is how well we do it."
The Commerce program will be detailed at a briefing this afternoon.
[SOURCE: Wall Street Journal Interactive, AUTHOR: WSJ Staff Reporter]
(http://interactive.wsj.com/articles/SB949972036183298809.htm)

WIRELESS

JAPANESE GOING ONLINE BUT LEAVING PCs BEHIND
Issue: Internet/Wireless
In Japan, where Internet usage remains at a low 14 percent, many of those
who access the net do so without using a PC. Companies have spent billions
to develop technologies that provide Japanese subscribers with online access
via mobile phone. One of these services, "i-mode," run by NTT Mobile
Communications Network Inc(better known as DoCoMo), provides Japanese
consumers with continuous, low-cost wireless access to the Web. They can use
the service to send and receive e-mail messages, check their bank balances,
find a restaurant, make flight reservations, check the weather or read their
horoscopes. Since its inception last February, the service has skyrocketed,
signing up about 450,000 new subscribers every month. It now boasts nearly 4
million subscribers. U.S. companies such as Microsoft, which formed a joint
venture to develop mobile software with DoCoMo in October, are watching
carefully. Said Microsoft's Steve Ballmer, "The U.S. is the most far-behind
wireless market in the world. We'll be doing a lot of the pioneering work
here. Eventually, I hope that'll migrate back to the United States."
[SOURCE: Washington Post (E1), AUTHOR: Clay Chandler]
(http://washingtonpost.com/wp-dyn/business/A22028-2000Feb7.html)

AOL EUROPE TESTS SYSTEM TO ALLOW WIRELESS ACCESS TO ONLINE SERVICES
Issue: Internet/Wireless
AOL Europe, a 50-50 venture between America Online and Germany's
Bertelsmann, has started testing technology that allows people to download
news, check e-mail and book airplane tickets from mobile phones. It hopes to
launch a portal in a few months to offer the services to any mobile phone
user, even if they aren't customers of its online service. Eventually AOL
Europe hopes to enable mobile phones to use the AOL instant-messaging
service that has been a hit with computer users. Internet use via mobile
phones is expected to explode in Europe in the next few years and possibly
eclipse the personal computer as the main device for accessing the Web. Last
year in Europe, about 275 million mobile phones were sold, compared with
about 100 million PCs. For mobile-phone users, AOL Europe's portal will be a
phone number that connects them to a menu of services, such as news, stock
quotes, travel and shopping. Although users will pay nothing in trials
beginning in the next few weeks, AOL Europe may end up charging a monthly
fee for the mobile access.
[SOURCE: Wall Street Journal (A21), AUTHOR: Neal Boudette]
(http://interactive.wsj.com/articles/SB949958877436790105.htm)

MERGERS

ROGERS COMMUNICATIONS TO ISSUE STOCK VALUED AT $3.4 BILLION FOR VIDEOTRON
Issue: Mergers/Cable
After Groupe Videotron announced yesterday that they were considering a
merger with an unnamed competitor, Rogers Communications announced today
that they agreed to acquire Groupe Videotron for stock valued at $3.4
Billion. The acquisition will not only create Canada's largest cable
operator but also a rival to Canada's biggest telecommunications provider,
Bell Canada. Rogers and Videotron officials said that the convergence of
cable, Interent and telephone communications was the driving force behind
the acquisition of Videotron. Videotron has been developing a new Internet
protocol technology that would allow residential telephone communications on
its cable network. The technology will help Rogers become a, "one-stop shop
of communications services".
[SOURCE: Wall Street Journal (B12), AUTHOR: Mark Heinzl]
http://interactive.wsj.com/articles/SB949943047261333929.htm

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

(c)Benton Foundation 2000. Redistribution of this email publication - both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation - primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone
doesnot represent the tone of the original articles. Headlines are compiled
by Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis (nancy( at )benton.org) - we
welcome your comments.

The Benton Foundation works to realize the social benefits made possible by
the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape the
emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration projects,
media production and publishing, research, conferences, and grantmaking,
Benton probes relationships between the public, corporate, and nonprofit
sectors to address the critical questions for democracy in the information
age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 2/7/2000

DIGITAL DIVIDE
Today's the Big Day for BET.com (WP)
Fledgling PeoplePC Lands Deal with Ford and Delta (WSJ)
Brazil Is Test Case for Free Web Access (WSJ)

PRIVACY
Report Rings Alarm Bells About Privacy On The Internet (NYT)
Critics Press Legal Assault On Tracking Of Web Users (NYT)

BROADBAND
Battle Lines Drawn Over Cable (WP)

BROADCASTING
Do Viewers Even Want To Interact With TV? (NYT)
FCC Denies Sinclair's Request to Modify Digital TV Standard (NYT)

INTERNATIONAL
In Finland, a Glimpse of a Futuristic Web on Wireless Phones (WSJ)
Videotron Holds Tie-Up Talks, Boosting Expectations of Canadian
Consolidation (WSJ)
International Development Plan/African Initiative (FCC)

PUBLISHING
Virtual Publishing: From Arthur Clarke To Psoriasis Tales (NYT)

THIS WEEK IN DC
Briefing on NTIA Budget Set for Feb. 7 (NTIA)
The Forum Connection (CRF)
House Committee on Commerce Hearing Schedule (House)

DIGITAL DIVIDE

TODAY'S THE BIG DAY FOR BET.COM
Issue: Digital Divide
Long-awaited and much-delayed, BET.com launches today. The free Web site
will feature nine "channels" on such topics as health, money and news
headlines. BET and investors Microsoft, USA Networks, Liberty Media, and
News Corp. are spending $35 million to launch the site. BET Holdings owns
51% of the venture. BET Chairman Robert L. Johnson says he intends to spin
off the site in an initial public offering within the year. A study by
Forrester Research in Cambridge, Mass. reports that about 3.9 million
African Americans are online. Johnson hopes to encourage more African
Americans to come online by offering relevant content. "We want to become
the one-stop source for African Americans," Johnson said. Aside from having
to compete with established sites such as NetNoir.com and BlackVoices.com,
some question whether African Americans will search out "Afrocentric"
information on the Internet. The site launches without E-commerce
capability. Focus groups steered the site content away from shopping to the
current themes of urban life, professionals, women and family. After
establishing an audience, Johnson said that people have approached him about
doing a national black newspaper. "Now one exists," he said. "It's going to
revolutionize the way African Americans think about politics or mutual
funds."
[SOURCE: Washington Post (B10), AUTHOR: Shannon Henry]
(http://washingtonpost.com/wp-srv/business/feed/a19193-2000feb7.htm)

FLEDGLING PEOPLEPC LANDS DEAL
Issue: Access
PeoplePC, a tiny San Francisco startup that opened in September and has
fewer than 50 employees, signed major deals to supply home PCs and Internet
access to employees of Ford Motor and Delta Air Lines - a group of as many
as 420,000 potential customers. Until last week, PeoplePC had focused solely
on serving the consumer market. Delta and Ford chose PeoplePC to help them
give employees access to corporate Internet "portals" that promote direct
communication with the company. Ford and Delta will subsidize the PeoplePC
service, which normally goes for $25 a month, for their employees. The
challenge for the company now is to deliver on the huge supply of orders and
the associated services. Historically, free or subsidized computers
companies have encountered difficulties. Free-PC Inc., which promised to
give away machines to customers willing to live with permanent ad banners on
their screens -- agreed in November to be acquired by PC maker eMachines
Inc., of Irvine, Calif. EMachines quickly terminated its free-PC program,
but allowed the 25,000 existing FreePC customers to keep their machines; and
Seattle-based Microworkz.com Computer Corp., which once offered low-priced
PCs coupled with free Internet service, apparently closed its doors late
last year amid a rash of customer complaints and several lawsuits.
[SOURCE: Wall Street Journal Interactive, AUTHOR: D. Hamilton and M.
Brannigan]
(http://interactive.wsj.com/articles/SB949875839274989346.htm)

BRAZIL IS TEST CASE FOR FREE WEB ACCESS
Issue: Internet Access
Brazil, Latin America's biggest Internet market, is becoming an important
testing ground for the commercial viability of offering free access to the
Web. Companies that offer no-cost connections figure they will compensate
for a lack of subscriber fees with ad revenues and/or transaction fees from
online sales. While less than 3% of Brazilians currently have Internet
access, new users are going online more quickly than in almost any other
country. Ever since a handful of Brazilian banks and Internet service
providers started offering no-cost Web connections to their customers,
Brazil's Internet-subscriber base has jumped by 50%. AOL, who began its
Brazilian service in November, is very interested in the outcome of the free
Web access question. "If the economics of free services become compelling
in any of the markets we are in, we could launch a free service using one of
our other brands at a fraction of the cost of everyone else," said Mike
Kelly, AOL's chief financial officer. AOL currently has no plans for
offering free Web access in Brazil.
[SOURCE: Wall Street Journal (A28), AUTHOR: Pamela Druckerman]
(http://interactive.wsj.com/articles/SB949868620300987360.htm)

PRIVACY

REPORT RINGS ALARM BELLS ABOUT PRIVACY ON THE INTERNET
Issue: Privacy
A report last week that most health-related Web sites were not honoring
their promises to keep personal information about visitors private caught
government officials and privacy enforcement groups off guard.
California HealthCare Foundation, determined that all but three of 19 sites
surveyed were violating their own stated practices. The foundation concluded
that most of the problems stemmed from new technology that enables some
banner advertisers to pick up any personal information a customer enters on
the page where an ad is displayed. Privacy advocates are pointing to the
results as proof of their longtime assertions that self-regulation of online
privacy promoted by the Clinton administration is ineffective. "At the
moment, with the Clinton administration saying self-regulation is the way we
are going to go, that basically says, 'Do whatever you want or do as little
as you want,"' said Jason Catlett, president of Junkbusters, a privacy
consulting group. "That's exactly the wrong message to send to companies
that have strong economic incentives to collect and use personal
information."
[SOURCE: New York Times (C10), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/07priv.htm)

CRITICS PRESS LEGAL ASSAULT ON TRACKING OF WEB USERS
Issue: Ecommerce/Privacy
The Electronic Privacy Information Center said last week that it was
preparing to file a complaint to the Federal Trade Commission about
DoubleClick, a company that tracks people's movements on the Internet. The
information it gathers enables the company to personalize the ads people see
when they visit a Web site of 1,500 companies that are part of DoubleClick's
advertiser network. Privacy concerns are increasing because DoubleClick's
new Abacus Alliance service has begun combining its online data with
information gleaned from consumers' offline purchases. "The question is, how
far can you take this?" Daniel MacKeigan, an analyst with the investment
firm Friedman Billings Ramsay. "Is this a new medium that has less of a
tolerance for tracking? A privacy cloud looms on the horizon, and
DoubleClick has to heed the warnings."
[SOURCE: New York Times (C1), AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/07book.htm)

BROADBAND

BATTLE LINES DRAWN OVER CABLE
Issue: Broadband
Should cable television companies be forced to open up their high-speed
lines to all Internet service providers or should they be able to retain
exclusive control themselves? Many state legislatures are beginning to
grapple with this question. While cable companies say that opening their
lines to competition will hurt their ability to raise the money to lay the
cable to reach homes and businesses, open access advocates argue that it
will offer consumers more choices.
"Consumers benefit from an open marketplace and competition," said Maryland
delegate Cheryl C. Kaga, who is sponsoring legislation requiring that cable
systems provide access to all Internet providers. "Where we have a variety
of choices, there tends to be lower prices and better service." Laurence
Levitan, a representative of the Cable Telecommunications Association,
argued against the bill: "If open access is forced on [cable operators], it
basically slows down everything," said
[SOURCE: Washington Post (A1), AUTHOR: Daniel LeDuc and Craig Timberg]
(http://washingtonpost.com/wp-dyn/business/A18477-2000Feb6.html)

BROADCASTING

DO VIEWERS EVEN WANT TO INTERACT WITH TV?
Issue: Television
At a large conference at the Waldorf-Astoria hotel in New York last week,
where several hundred industry executives shared their optimism for the
future of interactive television, there were many questions about what the
public really wants. "I do not think people will want to stop and buy
something in the middle of that entertainment programming," said James M.
Moroney, an executive with Belo Corp., owner of 16 television stations
nationwide. Since the early 1950s, companies have experimented and failed.
John Carey, a consultant, argued that the past failures of interactive T.V.
have been failures of marketing and not technology. "When you read that
consumers have rejected interactive television, it's simply not true," he
told the audience.
[SOURCE: New York Times (C5), AUTHOR: Joel Brinkley]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/07act.html)

FCC DENIES SINCLAIR'S REQUEST TO MODIFY DIGITAL TV STANDARD
Issue: DTV
By a 5-0 vote, the Federal Communications Commission decided on Friday to
deny a petition from the Sinclair Broadcast Group asking the commission to
modify the nation's digital television standard. Sinclair, which owns or
operates more television stations than any other company, began complaining
last summer that the digital standard, which was adopted by the government
in 1997,included transmission technology that left digital television
receivers incapable of receiving a transmission unless the receiving antenna
was in the direct line of sight of the transmitting antenna. Sinclair,
joined by 250 other television stations, filed a petition in October asking
the FCC to revise the standard so that stations could choose to use a
transmission technology that had shown in tests by Sinclair that it worked
better in many circumstances. The commission denied Sinclair's request on
Friday. In a letter to Sinclair, the commission said numerous studies had
shown that the current transmission standard was adequate. The commission
also said that shortcomings found in the first-generation digital receivers
now being sold would probably be remedied in future products.
[SOURCE: New York Times (C6), AUTHOR: Joel Brinkley]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/07dtv.html)
See Also
FCC Denies Sinclair Petition for Rulemaking on COFDM Standard
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Engineering_Technology/News_Releases/2000/nret00
02.html)

INTERNATIONAL

IN FINLAND, A GLIMPSE OF A FUTURISTIC WEB ON WIRELESS PHONES
Issue: Wireless/International
With nearly three out of four people in Finland carrying a cellular phone,
Finland has gained the reputation of being the "Silicon Valley of the
wireless Web". Nokia, the cellular phone maker located in Finland, has come
out with a cellular phone model which uses WAP (Wireless Application
Protocol). WAP allows web content to beamed onto cellular phones. Finnish
startup companies are moving quickly to provide consumers with the ability
to participate in online auctions, bet on hockey games, or even buy sodas -
all through their cellular phone. And while the Finnish are excited about
being the having "first mover advantage" when it comes to wireless web
applications, they know that this will soon change. US based companies are
expected to swoop in and use their high-priced shares to buy up key Finnish
startups. "Phones are toys here in Finland. We are trying to make them
toys everywhere else, too."
[SOURCE: Wall Street Journal (B1), AUTHOR: Thomas Weber]
(http://interactive.wsj.com/articles/SB949874929989753644.htm)

VIDEOTRON HOLDS TIE-UP TALKS, BOOSTING EXPECTATIONS OF CANADIAN
CONSOLIDATION
Issue: Cable/International
Groupe Videotron, Quebec's dominant cable operator, announced their plan to
merge with a yet unnamed competitor thereby fueling expectations of
consolidation in Canada's cable industry. Canadian cable companies have a
substantial lead over US cable companies in providing high-speed cable
Internet services to their customers. About 462,000 Canadian homes have a
cable-Internet connection compared to the 1.35 million such homes in the US.
Yet, the US's population is about nine times that of Canada. "Canada is
further ahead primarily because the largest cable operators had much more
aggressively upgraded their cable networks", said Michael Harris of Kinetic
Strategies. Videotron is seeking to become a national
business-telecommunications operator. Any mergers between major Canadian
cable companies would have to be friendly since all are family controlled.
[SOURCE: Wall Street Journal (B20), AUTHOR: Mark Heinzl]
(http://interactive.wsj.com/articles/SB949875972589081433.htm)

INTERNATIONAL DEVELOPMENT PLAN/AFRICAN INITIATIVE
Issue: International
Last summer Chairman Kennard traveled to Africa and he has signed one-year
work plans with South Africa, Ghana and Uganda. A report released last week
details the history of the initiative, the actual work plans signed with
those three countries and the three major components of the Development
Initiative for Africa:
1) Regional outreach to the telecommunications regulators of the Southern
African Development Community (SADC) and the Telecommunications Regulators
Association of Southern Africa (TRASA), as well as to regulatory officials
from countries in the Common Market for Eastern and Southern Africa(COMESA);
2) Bilateral work plans with Ghana, South Africa and Uganda, which provide
for technical assistance from the FCC as well as exchanges of information;
and 3) Future opportunities for cooperation and assistance to countries
seeking to establish independent regulatory bodies and open and competitive
markets. "Connecting the Globe: The Africa Initiative," as well
as other documents relating to the International Development Initiative, are
available online at the FCC's website, www.fcc.gov.
International Bureau contact: Patrick Boateng at (202) 418-2370
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/International/News_Releases/2000/nrin0004.html)

PUBLISHING/INTERNET

VIRTUAL PUBLISHING: FROM ARTHUR CLARKE TO PSORIASIS TALES
Issue: Publishing
An online computer bookstore turned digital publisher is at the vanguard of
a new electronic book market that entices writers with the editorial
equivalent of: Who Wants to Be an Author? The retailer, Fatbrain.com, has
sold 10,000 short (ideally less than 100 pages) electronic titles on its
Website since November including an essay by the noted science fiction
author, Arthur C. Clarke that sold for $2. Customers, though, are still
drawn to books about computers and business, with more than 50 percent of
sales in the professional category. The average price of the e-books sold is
about $3.47. Early on, the notion of virtual titles by virtually anybody
captured the imagination of venture capitalists even though some top
publishers scoffed. But lately there are signs emerging that the traditional
literary community is warming to the form; Time Warner Trade Publishing
wants to post chapters or excerpts from coming books on the Fatbrain site.
Some prominent authors, such as Clarke, are beginning to place short works
or out-of-print books on the site, which is already a literary refuge for
amateur writers yearning to share their oeuvres -- "Psoriasis: My
35-Year-Itch That Vanished" or "Did Russia Send Us AIDS?"
[SOURCE: New York Times (A1), AUTHOR: Doreen Carvajal]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/07book.html

THIS WEEK IN DC

BRIEFING ON NTIA BUDGET SET FOR FEB. 7
Issue: NTIA
Gregory L. Rohde, assistant secretary of commerce for communications and
information and head of the National Telecommunications and Information
Administration (NTIA) will hold a briefing Mon., Feb. 7, on the agency's
budget request for FY 2001. The briefing will take place in Room 4896 in the
Commerce Dept. immediately following the news conference by Secretary
William Daley of the Commerce Dept. budget. Rohde will discuss the budget
requests that include NTIA's "Closing the Digital Divide" initiatives, funds
for public broadcasting equipment, critical infrastructure protection and
spectrum management.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/budgetma20400.htm)

THE FORUM CONNECTION
A publication that covers democratic participation and equity issues in
telecommunications, broadcast, and information policy. Most recent issue
published 2/1/2000. Stories include: Privacy and DTV; FCC Votes to Legalize
Low-Power Radio; Groups to Help Communities Establish Micro-Radio Stations;
FCC Announces New EEO Rules; Federal Agencies not Adhering to FOIA Laws,
Report Says
[SOURCE: Civil Rights Forum on Communications Policy]
(http://www.civilrightsforum.org/connection000201.html)

HOUSE COMMITTEE ON COMMERCE HEARING SCHEDULE
Issue: Legislation
The Subcommittee on Telecommunications, Trade and Consumer Protection has
scheduled the following hearings. This schedule is subject to change
without notice.

Wednesday, February 9, 2000 at 2:00 pm in 2322 Rayburn House Office
Building. The title of the hearing will be "The White House, the Networks,
and TV Censorship." Witnesses will be by invitation only.

Wednesday, February 16, 2000 at 10:00 am in 2123 Rayburn House Office
Building. The title of the hearing will be "Video on the Internet:
iCraveTV.com and Other Recent Developments in Webcasting." Witnesses will
be by invitation only.

Thursday, February 17, 2000 at 10:00 am in 2322 Rayburn House Office
Building. The hearing will focus on the FCC's Low-power FM: A Review of
the FCC's Spectrum Management Responsibilities in addition to H.R. 3439, the
Radio Broadcasting Preservation Act." Witnesses will be by invitation only.

The audio of all Committee hearings are broadcast live via the Internet. You
will need the free Real Audio Player (real.com) in order to listen.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

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

(c)Benton Foundation 2000. Redistribution of this email publication - both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation - primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone
doesnot represent the tone of the original articles. Headlines are compiled
by Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis (nancy( at )benton.org) - we
welcome your comments.

The Benton Foundation works to realize the social benefits made possible by
the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape the
emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration projects,
media production and publishing, research, conferences, and grantmaking,
Benton probes relationships between the public, corporate, and nonprofit
sectors to address the critical questions for democracy in the information
age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 2/4/2000

DIGITAL DIVIDE
Ford Offers Workers PC's And Internet Service For $5 A Month (NYT)
Digital Divide in Rural America (NTIA)

MERGERS
Vodafone, Mannesmann Set Takeover At $180.95 Billion After Long Struggle
(WSJ)
USA Networks Says It Is Pursuing Small Movie Studios Exclusively (WSJ)

BROADCASTING
In Face Of Threats, Fox And CBS Join Pledge To Promote Diversity
PBS Reported Ready To Name A CNN Executive To Top Post (NYT)

TELEPHONY
Phone-Bill Math Takes a Toll (WP)

INTERNET
Congress Gets Bill to Continue Ban on New State Taxes on Internet (NYT)

DIGITAL DIVIDE

FORD OFFERS WORKERS PC'S AND INTERNET SERVICE FOR $5 A MONTH
Issue: Digital Divide
The Ford Motor Company said today that each of its 350,000 employees
worldwide would be offered a high-speed desktop computer, a color
printer and unlimited Internet access for just $5 a month (possibly
lower for workers in lower-wage countries), in a program that had its
genesis during Ford's negotiations in the fall with the United
Automobile Workers union. The offer extends to employees' families, who
will be encouraged to use the equipment, made by the Hewlett-Packard
Company, and who will be given e-mail accounts. Ford executives
portrayed today's initiative as an example of corporate munificence and
as a way to improve company communications with workers, but auto
industry experts said that it could carry several benefits for the
company, including boosting morale and making training available to
workers in their homes. Ford officials predicted that almost all
employees would take the computers. All will be eligible, even if they
already own a computer. Delivery will start in the United States in
April, and Ford is committed to the program for at least three years,
after which it will review it.
[Source: New York Times (A1) Author: Keith Bradsher]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/04ford.htm)

DIGITAL DIVIDE IN RURAL AMERICA
Issue: Digital Divide
Assistant Secretary Rohde delivered testimony before the Senate Committee on
Agriculture, Nutrition, and Forestry on the digital divide in rural America
and efforts to ensure that viewers in small and rural markets have access to
local broadcast programming.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/congress/20300testimony.htm)

MERGERS

VODAFONE, MANNESMANN SET TAKEOVER AT $180.95 BILLION AFTER LONG STRUGGLE
Issue: Merger
In a transaction that would eclipses AOL's planned acquisition of Time,
Germany's Mannesmann has surrendered to a friendly $180.95 billion merger
Britain's Vodafone AirTouch. After a bitter three-month battle, the two
companies finally reached agreement on a deal that is likely to reshape the
global-telecommunications landscape, creating the world's largest
mobile-phone operator. The gap between the U.S. and Europe, which is ahead
in the development of wireless services, could widen as a result of this
deal. Experts also expect The Vodafone-Mannesmann agreement to prompt rivals
to peruse their own plans to merge. "This is going to be a huge catalyst,"
said Paul Brilliant, London-based wireless analyst at Credit Suisse First
Boston. "There's a wave of consolidation coming." The deal is expected to
receive intense regulatory scrutiny from the European Commission, which has
taken an especially tough look at recent telecom deals.
[SOURCE: Wall Street Journal (A3), AUTHOR: Gautam Naik and Anita Raghavan]
(http://interactive.wsj.com/articles/SB949581016407171705.htm)

USA NETWORKS SAYS IT IS PURSUING SMALL MOVIE STUDIOS EXCLUSIVELY
Issue: Cable/Ownership
USA Networks Chairman Barry Diller said he is pursuing small acquisitions in
film production but is in "no conversations" about buying a major movie
studio. Mr. Diller said companies in the movie and television business "are
going to have to get operating on a larger scale or face being
marginalized." Mr. Diller also said that his company is still in discussions
with major broadcasters about a television-cable alliance that would take
advantage of the recently relaxed station-ownership rules. Additionally, USA
Networks has plans to announce new cable-TV networks within the next couple
of months.
[SOURCE: Wall Street Journal (B6), AUTHOR: Martin Peers]
(http://interactive.wsj.com/articles/SB94961722643898481.htm)

BROADCASTING

IN FACE OF THREATS, FOX AND CBS JOIN PLEDGE TO PROMOTE DIVERSITY
Issue: Media and Society
Facing threats of lawsuits and boycotts from the NAACP., Fox and CBS today
joined the other two major networks in signing commitments to make
television more ethnically diverse. The network agreements, much like those
signed by NBC and ABC last month, focus on changes in minority
representation both on-screen and off. They also provide that minority
recruitment will be considered in executive job evaluations. Kweisi Mfume,
president of the NAACP said that the agreements would bring "real,
meaningful, lasting change," But he also noted that where minority
representation in the entertainment industry is concerned, "It's not a
matter of having come a long, long way, but of still having a long way to
go."
[Source: New York Times (A14) Author: Associated Press]
(http://www.nytimes.com/00/02/04/news/national/naacp-tv.html)

PBS REPORTED READY TO NAME A CNN EXECUTIVE TO TOP POST
Issue: Public Broadcasting
The Public Broadcasting Service has chosen Pat Mitchell, the president of
CNN productions, to take the job of president, a PBS executive said
yesterday. Her appointment is expected to be announced officially at a news
conference in Washington Monday afternoon. At CNN, Ms. Mitchell held a range
of positions, mostly in the area of news and documentaries including the
24-hour documentary series "Cold War" and the recent 10-hour series
"Millennium." Ms. Mitchell will succeed Ervin Duggan, who resigned in
September, amid reports that he had been opposed by the managers of some PBS
stations for pushing too hard to concentrate power in the national
organization.
[SOURCE: New York Times (C6), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/pbs-cnn.html)

TELEPHONY

PHONE-BILL MATH TAKES A TOLL
Issue: Telephony
Since the 1930s, prices for telephone service have dropped more that 60
percent in inflation-adjusted dollars, according to the Bureau of Labor
Statistics. But one look at your phone bills might tell a different story.
Countless charges are added to local and long-distance bills. In addition to
federal, state and local taxes, phone companies impose a cadre of often
confusing fees including a "portability" charge, a national-access charge,
and monthly minimum fees. Gene Kimmelman, co-director of Consumers Union's
Washington office, finds this pile-on of charges troubling, especially since
the phone industry's costs are constantly dropping. "For the same amount of
long-distance usage, even if they're seeing a lower per-minute rate now,
when you add in new monthly fees [customers are] still paying about $2
billion more overall for the same amount of long-distance calling," he said.
If you have any questions about your phone bill that your phone company
can't or won't answer, you can call the Federal Communications Commission.
[SOURCE: Washington Post (E01), AUTHOR: Mike Musgrove]
(http://washingtonpost.com/wp-srv/business/feed/a9461-2000feb4.htm)

INTERNET

CONGRESS GETS BILL TO CONTINUE BAN ON NEW STATE TAXES ON INTERNET
COMMERCE
Issue: E-Commerce
A bipartisan bill introduced in Congress Thursday would ban new local and
state taxes that specifically target the Internet. The bill introduced by
Sen. Ron Wyden, D-Ore., and Rep. Christopher Cox, R-Calif., would make
permanent a current law which bans new taxes, but that expires next year.
Neither the current law, nor the new bill says anything about states
imposing current sales taxes on Internet purchases, but several members of
Congress are pushing a bill that would make prevent states from doing this.
Sales tax now accounts for about $150 billion in revenue to states, about
two-thirds of their total revenue. Some lawmakers remain cautious of taking
this source of income away from states. "What if they find that their
revenue sources are coming up short?" said Sen. Pete Domenici, R-N.M.
[Source: New York Times (A20) Author: Associated Press]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/04tax.html)

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

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone does
not represent the tone of the original articles. Headlines are compiled by
Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis (nancy( at )benton.org) -- we
welcome your comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 2/3/2000

DIGITAL DIVIDE
Clinton Enlists Help for Plan to Increase Computer Use (NYT)

INTERNET
No Party Line When Issue Is Web Taxation (WP)
Group Seeks To Set Rules For Health-Care Web Sites (WSJ)

ACCESS
A Way to Talk on a Cell Phone Without a Word Being Spoken (NYT)

POLITICAL DISCOURSE
McCain's Web Page Rakes In Donations Day After N.H. Win (SJM)

MERGERS
Vodafone Finally Succeeds in $160 Billion Bid for Mannesmann (NYT)

DIGITAL DIVIDE

CLINTON ENLISTS HELP FOR PLAN TO INCREASE COMPUTER USE
Issue: Digital Divide
Seeking to build support for his $2.3 billion digital divide budget
initiatives, President Clinton convened computer executives, including Steve
Case of America Online, at Ballou Senior High School in a struggling
neighborhood in Washington, D.C. "It will be tragic if this instrument, that
has done more to break down barriers between people than anything in all of
human history, built a new wall because not everybody had access to it," Mr.
Clinton said. With the declared goal of making Internet access as common as
telephone usage, the budget proposals focus on helping to train teachers;
the creation of 1000 community technology centers; the launch of a $50
million home computer project; and $10 million for a special program to help
American Indians prepare for careers in information technology. The
centerpiece of the proposal, would be $2 billion in tax incentives over the
next decade to encourage companies to donate computers, sponsor schools,
libraries and community centers, and support technology training for
workers. Congressional Republicans have shown support for Mr. Clinton's goal
of hooking up more Americans to the Internet. But the specifics of a federal
response are still being developed on Capitol Hill. "I'm a little nervous
about having the federal government dictate what gets done in school
districts," said Senator Robert F. Bennett, the Utah Republican heads the
Senate High Tech Task Force.
[SOURCE: New York Times, AUTHOR: Marc
Lacey](http://www.nytimes.com/library/tech/00/02/biztech/articles/03digital.
html)
See Also
CLINTON TO PROPOSE $2 BILLION IN INCENTIVES FOR COMPUTERS
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Wall Street Journal
Staff]
(http://interactive.wsj.com/articles/SB949499003542780466.htm)

INTERNET

NO PARTY LINE WHEN ISSUE IS WEB TAXATION
Issue: E Commerce/Internet Regulation
Two Republican Governors faced off on the issue of Internet taxation as they
testified before the Senate Budget Committee yesterday. Massachusetts
Governor Paul Cellucci came down hard on the tax-free side stating that "we
must not build a toll on the information superhighway." Governor John Engler
of Michigan, however, said that while he is not generally in favor of taxing
the Internet, he wanted states to be able to use current sales taxes to
collect revenue from online purchases. Cellucci said that imposing new taxes
"would choke off a burgeoning industry before we experience its full
economic benefit." Engler responded to that statement, quoted to him later,
saying, "I don't know, AOL is large enough to buy Time Warner-so they're
scraping by, at least." The debate over Internet taxation has heated up as
the three-year moratorium on any new taxes aimed directly at the Internet
nears expiration. Two of the most vocal opponents to new taxation are
Democrats, Ron Wyden of Oregon and Barbara Boxer of California.
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-srv/business/feed/a4072-2000feb3.htm)

GROUP SEEKS TO SET RULES FOR HEALTH-CARE WEB SITES
Issue: Health/Internet
In response to recent criticism of how some health Web sites handle visitor
information, participants of the "eHealth Ethics Summit" held this week in
Washington, D.C., took steps toward establishing ethical standards for the
operation of health-care Web sites. The group plans to formally publish a
proposed set of principles for public comment later this month.
Recommendations on focus on areas like protection of patient privacy and
informed consent, in an effort to increase public trust in health Web sites.
The recommendations also advise that the industry establish a mechanism to
give consumers the chance to access and correct information gathered from
them over the Web
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Wall Street Journal
Staff]
(http://interactive.wsj.com/articles/SB949545763723696261.htm)

ACCESS

A WAY TO TALK ON A CELL PHONE WITHOUT A WORD BEING SPOKEN
Issue: Media and Society
Bell Laboratories, the research division of Lucent Technologies, and the
Bell Atlantic Mobile division of the Bell Atlantic Corporation have
announced a technology that will allow people with hearing and speech
impairments to make digital cellular calls using text-telephone, or
teletypewriter, devices. Bell Atlantic Mobile, said the company plans to
market phones that are compatible with such devices, known as TTY equipment,
in the second half of 2001. The company will work with several handset
manufacturers to incorporate the technology into new handset models. The
Federal Communications Commission mandated in 1996 that TTY users have
wireless access to 911 emergency services. Jeffrey Nelson, a spokesman for
the Cellular Telecommunications Industry Association said: "The cellular
industry is very committed to putting wireless in the hands of all
consumers, including those with hearing loss, and this is a very important
step towards that goal." TTY devices have been used since the 1960's to
transmit and receive text messages over phone lines. They generally consist
of a keyboard, a screen, a telephone handset and an acoustic receiver and
transmitter that sends a series of high-pitched tones over the phone line.
One challenge in developing a wireless-compatible TTY was that wireless
phones could not decode a TTY's broad range of tones without a high margin
of error.
[SOURCE: New York Times (E4), AUTHOR: CATHERINE GREENMAN]
(http://www.nytimes.com/library/tech/00/02/circuits/articles/03deaf.html)

POLITICAL DISCOURSE

MCCAIN'S WEB PAGE RAKES IN DONATIONS DAY AFTER N.H. WIN
Issue: Political Discourse
Following a unexpectedly pronounced primary victory in New Hampshire, Sen.
John McCain's Web site collected a record-breaking $501,415 on Wednesday,
the largest one-day online campaign fundraising. From the time television
pundits proclaimed McCain a runaway winner on Tuesday evening, more than
17,000 donors visited McCain's Web site to contribute to his campaign. Only
500 people, in comparison, called to pledge donations over the telephone.
Harvard Professor David King, who has studied Internet campaigning, says
that politicians still have much to learn about taking advantage of the
Internet. "There are so many exciting and interesting things online that the
world of politics won't figure out until it's been done elsewhere first. If
you watch what Proctor & Gamble does to market its soap, that's what you'll
see politicians do three or four years down the road," he predicts. One
barrier to taking full advantage of the Internet for campaigns is that there
aren't yet enough voters who regularly go online for the Web sites to make a
significant impact, according to University of California-Berkeley Professor
Merrill Shanks. A recent Time/CNN poll found that only 17 percent of adults
said they use the Internet to gain access to politics.
[SOURCE: San Jose Mercury News, AUTHOR: Joshua L. Kwan]
(http://www.mercurycenter.com/svtech/news/indepth/docs/prez020300.htm)

MERGERS

VODAFONE FINALLY SUCCEEDS IN $160 BILLION BID FOR MANNESMANN
Issue: Mergers
Mannesmann has finally succumbed to Vodafone AirTouch's $160 billion hostile
take-over bid. The companies have negotiated a deal that will give Vodafone
51.5% control of the company, while leaving Mannesmann with 49.5% control.
The face-saving agreement will be called a "merger." Last week Mannesmann
had attempted to negotiate a merger with Vivendi, a French media and
utilities group, that would have given Mannesmann control of France's
second-largest wireless network as well as a major stake in Canal Plus,
Europe's biggest pay-television company. Mannesmann's efforts were derailed
when Vodafone succeeded in negotiating its own alliance with Vivendi.
[SOURCE: New York Times (Online), AUTHOR: Andrew Ross Sorkin with Edmund L.
Andrews]
(http://www.nytimes.com/yr/mo/day/late/03vodafone.html)

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

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone does
not represent the tone of the original articles. Headlines are compiled by
Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis (nancy( at )benton.org) -- we
welcome your comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 2/1/2000

INTERNET
Lobbying and Confusion Over Internet Taxes Escalate (Cyber)
Discovery Plans to Launch Internet Unit To Pursue Web Tie-Ins to
Programming (WSJ)
Internet: The American Experience (FCC)

PRIVACY
Medical Web Sites Faulted on Privacy (WP)
Epic Testifies On National Plan For Information Systems Protection
(EPIC)

MERGER/ALLIANCES
Two Fiber Optics Firms Teaming Up (SJM)
Bell Atlantic/GTE Supplemental Filing (FCC)
Motorola, Psion Ally to Develop Mobile Products for Web Access (WSJ)

TELEPHONY
Consumer And Business Groups Join To Push Federal Government To Cut
Telephone Prices (CU)

ELECTRONIC COMMERCE
Businesses Warm Up To Making Deals Over Net (USA)
Services Let Consumers E-Mail Cash (USA)

INTERNET

LOBBYING AND CONFUSION OVER INTERNET TAXES ESCALATE
Issue: Internet
The Congressional session has just begun, and already several bills have
been filed to make a current three-year moratorium on new, discriminatory
Internet taxes permanent. The Internet Tax Fairness Coalition, a political
action committee trying to abolish sales taxes on Internet transactions, has
given $1.7 million to members of Congress in 1999, according to a report
issued last week by the Center for Responsive Politics. Sen. John McCain,
the largest recipient of the coalition's contributions, is the author of a
bill that would permanently extend the moratorium on Internet taxes and ban
the future collection of online sales taxes. Another group, the E-Fairness
Coalition, which has given about $1 million to members of Congress, is
backing a simplified system that would enable state and local governments to
collect taxes on online sales. Additionally, the National Association of
Counties (NACO) says its top legislative priority this year is to block any
attempts to ban Internet sales taxes. "People were convinced early in the
game that collecting tax on Internet purchases was a new tax, but that's not
a new tax," said Shawn Bullard, a spokesman for NACO. "Very few lawmakers
have recognized that (McCain's bill) takes that extra step. That is a dagger
in the heart of local and state governments."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/02/cyber/capital/01capital.html)

DISCOVERY PLANS TO LAUNCH INTERNET UNIT TO PURSUE WEB TIE-INS TO PROGRAMMING
Issue: Internet
Cable-television giant Discovery Communications is expected to announce
today its plans for setting up a new Internet subsidiary, Discovery.com,
with an eye on ultimately taking it public. Discovery is expected to invest
$500 million in the unit over the next three years. The new company will be
able to create alliances and invest in other companies to provide web
tie-ins for existing Discovery products. Last year, Discovery became an
investor in Petstore.com, a Web site devoted to pet supplies, then used it
as a bridge to snag Animal Planet viewers, and vice versa. Discovery.com is
also hoping to attract consumers to its fledgling Internet "gateway," dubbed
Web Express.
[SOURCE: Wall Street Journal (B10), AUTHOR: Leslie Cauley]
(http://interactive.wsj.com/articles/SB94936336165774772.htm)

INTERNET: THE AMERICAN EXPERIENCE (Speech)
Issue: Internet
Chairman Kennard's Address to the Conference on "Internet &
Telecommunications: The Stakes" in Paris, France.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/2000/spwek004.html)
See Also:
FCC CHAIRMAN ADDRESSES SPANISH INTERNET CONFERENCE
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/2000/nrmc0006.html)

PRIVACY

MEDICAL WEB SITES FAULTED ON PRIVACY
Issue: Privacy
A study by Georgetown University's Health Privacy Project has found that the
21 leading health web sites are not following through on their privacy
policies. "Almost across the board, the privacy practices did not match the
policies," said Janlori Goldman, a researcher for the report. The report
found that through "cookies" (bits of code placed on a user's computer that
helps a site identify the user on return visits) and banner advertisements,
information is collected about users without them being aware of it. A
number of the web sites reviewed gathered personally identifying data about
visitors and then passed that data along to third parties, "in direct
violation of stated privacy policies." Eight of the 21 sites have a business
relationship with the Internet advertising company Doubleclick. "None of
the sites that use ad networks disclosed whether they are doing profiling,"
the report said, "Nor did they explain what is happening with the data being
collected by the ad networks." The report will be officially released today
at the e-Health Ethics Summit in Washington DC, a gathering of major online
health information providers.
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-srv/business/feed/a57644-2000feb1.htm)

EPIC TESTIFIES ON NATIONAL PLAN FOR INFORMATION SYSTEMS PROTECTION
Issue: Privacy
On February 1, EPIC Executive Director Marc Rotenberg presented his
testimony (http://www.epic.org/security/EPIC_testimony_0200.pdf), before the
Senate Judiciary Committee (http://www.senate.gov/~judiciary/), on the
privacy implications of the Clinton Administration's "cyber-terrorism"
initiative. EPIC warns that the plan, in its attempts to protect the United
States' information infrastructure, could violate the civil liberties of the
citizens it is trying to protect.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/security/press_release.html)

TELEPHONY

CONSUMER AND BUSINESS GROUPS JOIN TO PUSH FEDERAL GOVERNMENT TO CUT
TELEPHONE PRICES
Issue: Telephony
From Press Release: Consumer groups-including Consumers Union, AARP,
Consumer Federation of America, the National Association of State Utility
Consumer Advocates, and the Texas Office of Public Utility Counsel - are
joining forces with large and small business users - the National Retail
Federation and the International Communications Association-to propose a
$4-billion-a-year cut in line items charged on telephone users' monthly
bills (i.e., "subscriber line charges" and "federal access charges"). The
coalition's proposal to the Federal Communications Commission (FCC) would
reduce monthly fees and long distance prices for all consumers, regardless
of how long they spend making telephone calls. The coalition's plan would
save telephone customers $4 billion a year by: 1) Cutting the subscriber
line charges on consumers' and business' phone bills by $1 a month, saving
consumers and businesses $2 billion a year; 2) Eliminating the "primary
interexchange carrier" charge (a federal access charge), saving consumers
and businesses $1.8 billion a year; and 3) Cutting "special access" charges,
paid by many business users, saving them $200 million a year. The coalition
is asking the FCC to incorporate its plan into an industry proposal to
reform the telephone access fee system submitted by an organization called
the Coalition for Affordable Local & Long Distance Service (CALLS), an
industry group including AT&T, Bell Atlantic, BellSouth, GTE, SBC, and
Sprint.
[SOURCE: Consumers Union]
(http://www.consumersunion.org/telecom/cutteledc100.htm)

ALLIANCES/MERGERS

TWO FIBER OPTICS FIRMS TEAMING UP
Issue: Alliance/Fiber Optic
Brocade Communications Systems, a San Jose company specializing in
networking and data storage, and the Santa Clara-based start-up Optical
Networks are expected to announce today a strategic alliance that could
decrease the cost of sending information over fiber optic lines and help
speed up the Internet. Optical Networks makes equipment to manage the flow
of voice and data traffic within metropolitan areas, routing it off of the
cross-country fiber highway and onto high-speed local roads. Businesses use
Brocade's storage area networks to protect and share information between
locations within a radius of about 100 kilometers. By cooperating with
Optical Networks, Brocade will enable its customers to double the reach of
their storage networks by using high-speed local roads. "We're seeing
incredible pent-up demand for interconnection these days in a
metropolitan-area space," said Greg Reyes, CEO of Brocade. Fiber optic lines
transmit data by moving light over fiber instead of moving electrons over
copper telephone wires. "Electrons over copper" is proving too slow and
feeble to handle the increasing rush of data traffic as the Internet goes
mainstream.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Fortt]
(http://www.mercurycenter.com/svtech/news/indepth/docs/optic020100.htm)

BELL ATLANTIC/GTE SUPPLEMENTAL FILING
Issue: Mergers
Commission seeks Comment on Supplemental Filing Submitted by Bell Atlantic
Corporation and GTE Corporation to transfer GTE Internet backbone and
related data business to a separately owned and controlled corporation.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/2000/da000165.doc)

MOTOROLA, PSION ALLY TO DEVELOP MOBILE PRODUCTS FOR WEB ACCESS
Issue: Alliance/Wireless
Psion and Motorola have just announced an agreement to jointly develop a
range of mobile Internet-access devices to be used on cellular networks in
Europe, North America and Asia. This expands on Psion's existing
relationship with Motorola under the Symbian alliance, a joint venture
formed to back Psion's EPOC operating system for handheld computers and
other wireless devices. The companies anticipate a launch of a new product
aimed at professionals who want to use the Internet while on the move,
during the first half of 2001.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Wall Street Journal
Staff]
(http://interactive.wsj.com/articles/SB949333562109146317.htm)
E-COMMERCE

BUSINESSES WARM UP TO MAKING DEALS OVER NET
Issue: E-Commerce
The speed at which business is conducted is now so hurried that companies
are beginning to make more and more deals without face to face meetings.
HomePage.com, a Pasadena, Calif. provider of homepage services conducts many
of its negotiations electronically. "We really don't exchange paper at all,
until the signature sheet is faxed." BCC Technologies, a supplier of
computer storage products, has made multimillion-dollar deals with European
equipment manufacturers using only videoconferencing. As the trend of
"faceless" deals grows beyond the high-tech industry, companies are being
created to help automate deals. Acquire1 of Redwood City, Calif., has
developed an online system that allows merchants to review and hire
companies that process credit card transactions. "It's becoming the new way
of doing business," says Acquire1 CEO John Gillen. "It's more efficient and
cheaper."
[SOURCE: USAToday (1B), AUTHOR: Stephanie Armour]
(http://www.usatoday.com/usatonline/20000201/1896467s.htm)

SERVICES LET CONSUMERS E-MAIL CASH
Issue: E-Commerce
Consumers now have the ability to send and receive cash over the Internet at
no cost. After signing up for PayPal.com or dotBank.com, both of which are
payment services rather than banks, individuals can send money by charging
it to a credit or debit card. Recipients are notified by email and can
request a check or an electronic transfer to their bank account. X.com, an
Internet-only bank also offers payment services, but in order to use them
consumers must first open a no-fee checking account. After opening the
account, recipients can send their money on to another bank. Experts expect
the services to catch on. None of them require special software, but they
must first convince potential users that their services are secure. PayPal
and X.com are both offering incentives to those who sign up. PayPal offers
$10 to new users and X.com offers $20. PayPal says it already has nearly
99,000 users-the others won't divulge user numbers. Joel Friedman, of
Andersen Consulting, says it will be hard to produce enough volume.
"Establishing a new payment system is not a trivial exercise," he said.
[SOURCE: USAToday (3B), AUTHOR: Christine Dugas]
(http://www.usatoday.com/usatonline/20000201/1896444s.htm)

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