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)
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