March 2000

MERGERS
Reporters Try on Many Hats in Chicago News Experiment (NYT)
Telecommunications Merger Act of 2000 (House)

EDTECH
Program Trains Teachers in Cross-Border Sharing of
Knowledge (CyberTimes)
Online Education to Be Free (WP)

PRIVACY
Europe and U.S. Reach Data Privacy Pact (CyberTimes)
With So Much Subscriber Data, AOL Walks a Cautious Line on
Privacy(WSJ)

INTERNET
'Horse Race' On Fiber Optics Speeds Up (SJM)
Gilmore Signs Bill On Software (WP)

TELEVISION
Rural Local Broadcast Signal Act (House)

INTERNATIONAL
Chinese Army Plans Mobile Phone Venture (WSJ)
Web Surfers Find Cracks In Wall Of Official China (USA)

MERGERS

REPORTERS TRY ON MANY HATS IN CHICAGO NEWS EXPERIMENT
Issue: Journalism/Merger
The Tribune Company is experimenting with turning newspaper reporters into
"multimedia journalists" and merging vast media properties into one large
newsgathering source. Reporters may write for the Chicago Tribune, be heard
on WGN radio, and appear on WGN-TV or the 24-hour cable news channel, CLTV.
No, its not because they have to hold down a number of low-paying jobs;
reporters are referred to as "content providers" for the parent company of
all these outlets. The experiment has been going on in Chicago for many
years and could come to a city near you with Monday's announcement of the
proposed Tribune/Times Mirror merger. The company is breaking down the walls
between television, newspapers, radio and the Internet, trying to teach
reporters how to contribute to the various on outlets while also promoting
other Tribune properties. "They're the ones leading the pack in multimedia
journalism," said Tom Goldstein, dean of the Columbia Graduate School of
Journalism. "Journalists of the future are going to have to know a lot of
things, and I think the Tribune Company is ahead in that way."
[SOURCE: New York Times (A1), AUTHOR: David Barboza]
(http://www.nytimes.com/library/financial/031500tribune-chicago.html)
See Also:
THE SELLING OF THE LOS ANGELES TIMES
[SOURCE: New York Times (A28), AUTHOR: NYTimes Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/15wed2.html)
A GENERAL WHOSE TIME RAN OUT
[SOURCE: New York Times (C1), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/library/financial/031500time-willes.html)

TELECOMMUNICATIONS MERGER ACT OF 2000
Issue: Mergers
Link to statements and testimony at yesterday's House Subcommittee on
Telecommunications Trade & Consumer Protection hearing. Members of Congress
and some FCC commissioners blasted the Commission for its review of
telecommunications and media mergers. FCC Chairman Kennard took exception to
the bill being discussed, noting that the Telecom Act of 1996 "charged the
FCC with opening telecommunication markets that have historically been
closed." The proposed bill, as drafted, "would deny the FCC sufficient
flexibility to do what Congress told us to do -- to promote competition."
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/7b6f272f9144161f852568a10068faac?OpenDocument)

EDTECH

PROGRAM TRAINS TEACHERS IN CROSS-BORDER SHARING OF KNOWLEDGE
Issue: EdTech
"We are tapping the resources of universities around the world to produce
the best content possible," said Elizabeth Lowe, director of the Partnership
in Global Learning, which is financed by a $1.5 million grant from the
Lucent Technologies Foundation, the charitable arm of the telecommunications
company. The company is also donating about $1.5 million in equipment to the
project. The project will use the Internet and other communications
technology to offer high school and college-level course materials for
classrooms around the globe. One purpose of the project is to increase the
amount of high-quality educational content online. Even in English, the
language that dominates the Internet, there is a dearth of such material
now. And experts in educational technology in developing countries say the
problem is particularly acute for non-English speaking nations.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels (mendels( at )nytimes.com)]
(http://www.nytimes.com/library/tech/00/03/cyber/education/15education.html)

ONLINE EDUCATION TO BE FREE
Issue: Philanthropy
Michael Saylor, who has made billions of dollars in the information
business, with his company, MicroStrategies, will announce tomorrow that he
has donated $100 million to create an online university that will offer "Ivy
League-quality" education at no cost. Saylor's plan will include lectures by
"geniuses and leaders," who will be videotaped beginning in the next months.
Saylor does not plan to pay those who will make up this "genius knowledge
bank." "People line up and fight to get on the Charlie Rose show," Saylor
said. "I think they'll fight to get into the studio. It gives a great
calculus
teacher the chance to teach 100 million people." Saylor's goal is to provide
for posterity. "If [Andrew] Carnegie were alive today, this would be his
library," Saylor said. "People will want to be part of it." If it turns out
he's wrong, he said, he'll figure out another approach -- "maybe royalties,"
he said. Saylor plans to make his announcement at the Greater Washington
Business Philanthropy Summit in Washington, an organization that seeks to
encourage philanthropy in the region.
[SOURCE: The Washington Post (A1), AUTHOR: Cindy Loose]
(http://www.washingtonpost.com/wp-dyn/articles/A9402-2000Mar14.html)

PRIVACY

EUROPE AND U.S. REACH DATA PRIVACY PACT
Issue: Privacy
"We reached an important stage today," said John Mogg, the European Union's
negotiator, after completed the wording yesterday on a privacy agreement
with the U.S. "I feel ready to recommend to authorities that the safe harbor
meets our criteria." American companies that gather personal information
from Europeans will now have to join so-called "safe harbor" programs, under
which they would agree not to gather or use personal information about
European consumers without the consumers' express consent. "This agreement
does not try to solve the issue of jurisdiction," a Clinton administration
official said. "What the safe harbor idea does is advises our industry as to
what to do to conduct business with Europe and not run afoul of their laws.
This advise applies equally to Web sites," who he said would have an
"enormous advantage" in Europe by following the rules. The agreement is
expected to take effect this summer.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/15privacy.html)
See Also:
U.S., EU NEGOTIATORS REACH AGREEMENT ON ELECTRONIC-COMMERCE PRIVACY RULES
[SOURCE: Wall Street Journal (B4), AUTHOR: Glenn Simpson]
(http://interactive.wsj.com/articles/SB953077395972255889.htm)

WITH SO MUCH SUBSCRIBER DATA, AOL WALKS A CAUTIOUS LINE ON PRIVACY
Issue: Privacy
With so much attention focused on Doubleclick, privacy advocates may be
unaware of one of the biggest information gatherers around. While AOL admits
to keeping records such as names, address and credit card numbers on its 21
million subscribers, it doesn't track users' travels on the Web. Well,
maybe not on the Web, but AOL's system does automatically track users'
movements within AOL's proprietary service - including chat rooms, e-mail,
news services and other content - where users' spend about 85% of their
time. "AOL is probably sitting on a bigger wealth of information about
consumers than any other entity," said Jeffrey Minsky, director of media
convergence at WPP Group. AOL says it has never sold data about its members'
movements within its system. "The notion of having someone track where
individual users go online took us in a direction we felt was
inappropriate," says Kathy Bushkin, and AOL senior vice president. AOL has
focused thus far on attracting and keeping paid subscribers and, if it were
to
begin selling detailed information, it could face a backlash by subscribers
and a regulatory review.
[SOURCE: Wall Street Journal (B1), AUTHOR: Nick Wingfield and Glenn Simpson]
(http://interactive.wsj.com/articles/SB953070781153369510.htm)

INTERNET

'HORSE RACE' ON FIBER OPTICS SPEEDS UP
Issue: Infrastructure
Nortel Networks has plans to acquire Xros Inc., a company with technology
that directs voice and Internet traffic over fiber optic networks, for $3.25
billion. The purchase is the latest move in an increasingly expensive
battle between Nortel and other companies trying to dominate the expanding
market for fiber optic network equipment. To relieve the increasing
bottleneck of traffic over traditional copper wires, companies are turning
to fiber optics, which transmit information using beams of light at much
greater speeds and do not need to be replaced as network traffic increases.
But even with optical equipment, there are several parts of
telecommunications networks that remain wedded to electronic equipment,
including switches. Lucent's and Xros' optical switches, however, use a
tightly packed array of tiny mirrors to direct optical traffic, which
eliminates the need to convert data into electronic form, increasing traffic
speed and reducing costs. Analysts predict that other equipment makers, such
as Cisco, Sycamore Networks and Ciena Corp., will need to develop or acquire
optical switching technology in order to remain competitive in the optical
networking market.
[SOURCE: San Jose Mercury News, AUTHOR: Chris O'Brien]
(http://www.mercurycenter.com/svtech/news/indepth/docs/xros031500.htm)

GILMORE SIGNS BILL ON SOFTWARE
Issue: Internet
Gov. James S. Gilmore III of Virginia signed a bill making the state
the first to regulate the software licensing agreements that take effect
when a consumer opens a software package or hits the "I Accept" button on a
downloaded program. While consumer groups have criticized the legislation,
Virginia's technology companies consider the signing of the bill a major
part of their push to make Virginia the most Internet-friendly state. Gov
Gilmore called the legislation "vital for continued growth of online
commerce." But
advocacy groups are concerned that consumers don't always know the terms of
licensing agreements before making their software purchase. "The whole idea
of informed shopping is based on disclosure before purchase," said Jean Ann
Fox, of the Virginia Citizens Consumer Council, which lobbied against the
bill.
[SOURCE: The Washington Post (B1), AUTHOR: Craig Timberg]
(http://www.washingtonpost.com/wp-dyn/articles/A9445-2000Mar14.html)

TELEVISION

RURAL LOCAL BROADCAST SIGNAL ACT
Issue: Television
Thursday, March 16, 2000 10:00 a.m. in 2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection
legislative hearing on H.R. 3615, the Rural Local Broadcast Signal Act.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

INTERNATIONAL

CHINESE ARMY PLANS MOBILE PHONE VENTURE
Issue: International
In an attempt to maintain control of its mobile-phone networks, the Chinese
Liberation Army is joining with several of China's biggest high-tech
companies to try to form the country's third mobile-phone operator. China's
political leaders had ordered the army to sell off its networks by 1998, but
the Army has decided to build new mobile operations in three more provinces.
Roughly 45 million Chinese currently use mobile phones and the number is
expected to double this year. It is unsure if the military plans to own
equity in the new company, called Century Mobile Communications. "Other
companies will invest in the network, and we will build it," said an
official from Shenzhou Great Wall Communications Development Center, the
commercial wing of the army responsible for military communications.
[SOURCE: Wall Street Journal (A20), AUTHOR: Matt Forney and Jason Dean]
http://interactive.wsj.com/articles/SB95306145891976369.htm

WEB SURFERS FIND CRACKS IN WALL OF OFFICIAL CHINA
Issue: Internet/Political Discourse/International
As the Internet explosion in China threatens to overwhelm the
government's ability to control it, the government is hustling to monitor
Net content with the same fervor as it does print and broadcast media.
China's online population more than quadrupled last year to almost 9
million, and within five years it is expected to have more Internet users
than any other country. While the government realizes that China must be
wired to the Net if it is going to thrive in the 21st century economy, it
also wants to keep tight controls on information. Visitors exchanging
information and opinions in chat rooms often say things online that would
have been unthinkable a few years ago. The government even has created a
forum for political discourse: the People's Daily chat room, called
"Strengthen the Country." "In the information age, if you don't offer people
such a service, they will go somewhere else," said Wang Xiaodong, a Beijing
researcher who has written a book about the Net. The People's Daily chat
room
is "relatively controllable, and (the government) can learn about public
opinion."
[SOURCE: USAToday (1B), AUTHOR: Julie Schmit and Paul Wiseman]
(http://www.usatoday.com/usatonline/20000315/2031918s.htm)

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MERGERS
Media Giants Set $8 Billion Merger (WP)
Qwest US West Merger Cleared by FCC if They Meet Conditions (WSJ)
Radio One to Add 21 Stations (WP)
Telecommunications Merger Act of 2000 (House)
Deutsche Telekom is Still Hungry for a Big Deal (WSJ)
Push for New Magazine May Test AOL-Time Warner Synergy (NYT)

OWNERSHIP
F.C.C. to Promote a Trading System to Sell Airwaves (NYT)
Revitalized UPN Is at Center of a Struggle for Ownership (NYT)

ED TECH
The Soul of a New University (NYT)

INTERNET
Digital Commerce: Case Illustrates Entertainment Industry's
Copyright Power (NYT)
China Reverses Harsh Internet Rules, Easing Threat to Trade (WSJ)
What's in a Name? Arcane Internal Bickering, Internet Agency Learns
(NYT)
Senior Surfers Rushing Online (USA)
Internet Instills Family Values -- Really (USA)

TELEVISION/CABLE
ABC Backs Off Threat to Pull Programs Off Houston Time Warner Cable
Systems (WSJ)
The Rural Local Broadcast Signal Act (House)

TELEPHONY
MCI May Pay $100M To Settle Lawsuit Focuses On High 'Casual Calling'
Rate (USA)
You've Got...A Phone Call? AOL Quietly Builds a Telecom Empire (WSJ)

COPYRIGHT
Case Illustrates Entertainment Industry's Copyright Power (NYT)

MERGERS

MEDIA GIANTS SET $8 BILLION MERGER
Issue: Merger
Tribune, the Chicago-based media conglomerate best known for its flagship
newspaper, the country's third-largest metropolitan daily, will merge with
Times Mirror Co., the Los Angeles-based publisher of the Los Angeles Times,
the Baltimore Sun and Newsday, the Tribune said early this morning.
Tribune's acquisition of the Los Angeles Times alone would represent the
largest newspaper purchase since the New York Times spent more than $1
billion to acquire the Boston Globe in 1993. The Tribune said that under the
terms of the stock and cash deal, which was valued at $8 billion, Tribune
would control the operations of the combined companies, which would be
headquartered in Chicago and headed by John Madigan, chairman of Tribune.
The combined company would be a newspaper, magazine and television
powerhouse.
[SOURCE: Washington Post (A1), AUTHOR: Howard Kurtz]
(http://washingtonpost.com/wp-dyn/business/A63929-2000Mar13.html)
See Also:
TRIBUNE COMPANY IS SEEN IN TALKS ON UNION WITH TIMES MIRROR
[SOURCE: The New York Times (Online), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/yr/mo/day/news/financial/tribune-mirror.html)

QWEST US WEST MERGER CLEARED BY FCC IF THEY MEET CONDITIONS
Issue: Merger
The Federal Communications Commission granted conditional approval of the
Qwest/US West merger this past Friday. The deal can't close until the two
carriers submit details on how Qwest will diverse itself of all of its
long-distance business in US West territory, about 6% of Qwest's customers
in that market. Over the last week, the relationship between Qwest and US
West became shaky after Qwest held acquisition discussions with Deutsche
Telekom without US West's knowledge. US West executives felt that the
discussions constituted a violation of the merger agreement but are still
pushing for the merger to happen. The pending merger is valued at $50
billion.
[SOURCE: Wall Street Journal (B12), AUTHOR: Stephanie Mehta and Kathy Chen]
(http://interactive.wsj.com/articles/SB952896649643140148.htm)
See Also:
FCC APPROVES QWEST/US WEST MERGER
Issue: Merger
The Federal Communications Commission (FCC) approved applications to
transfer control of licenses and lines from US WEST (US WEST) to Qwest
Communications International (Qwest). This approval is subject to the
Commission's determination that Qwest's divestiture of its long distance
customers in US WEST's region complies with its legal requirements to cease
providing interLATA, or long distance, services in US WEST's territory.
Additionally, Qwest's divestiture and the Commission's approval must be
completed prior to closing the merger.
Action by the Commission March 8, 2000 by Memorandum Opinion and Order (FCC
00-91). Chairman Kennard, Commissioners Ness, Powell and Tristani, with
Commissioner Furchtgott-Roth concurring in part, dissenting in part and
issuing a separate statement.CC Docket No.: 99-272 Common Carrier Bureau
contact: Henry Thaggert at 202-418-7941
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2000/nrcc0017.html)

RADIO ONE TO ADD 21 STATIONS
Issue: Radio/Mergers
Radio One will announce today that it will purchase 21 radio stations for
more than $1.36 billion, in a series of deals that will more than double the
revenue of the onetime D.C. community radio outfit, making it the largest
African American media company in the country. Radio One's acquisition
spree, which will result in a bolstered presence in the Midwest and
Southeast, will give the company a 48-station national reach and is
outpacing even that of the consolidation crazed radio industry. "Within
three to five years, there will be full consolidation," meaning that the
bulk of the 4,000 revenue-producing stations around the country will be
owned by six or so major radio companies, including Radio One, predicts Tim
Wallace, an analyst with Radio One underwriter Banc of America Securities
LLC.
[SOURCE: Washington Post (A5), AUTHOR: Yuki Noguchi]
(http://washingtonpost.com/wp-dyn/business/A62179-2000Mar12.html)

TELECOMMUNICATIONS MERGER ACT OF 2000
Issue: Mergers
Tuesday, March 14, 2000 10:00 a.m. in 2322 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on the Telecommunications Merger Act of 2000.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

DEUTSCHE TELEKOM IS STILL HUNGRY FOR A BIG DEAL
Issue: Internetaional
Unable to come to an agreement with Qwest due to their pending merger with
US West, Deutsche Telekom is looking through its little black book for other
possible acquisition targets. At the top of the list are Equant, a Dutch
company with headquarters in Atlanta, Global Crossing, and Cable & Wireless,
based in the UK. Two years ago, Deutsche Telekom considered bidding for
Cable & Wireless but was scared off by the high price tag and complications
with C&W's holdings in Hong Kong Telecom. C&W just recently spun off its
Hong Kong Telecom holdings. Deutsche Telekom is also eyeing Telefonica SA of
Spain and France Telecom. It had lost a bid to acquire Telecom Italia last
year.
[SOURCE: Wall Street Journal (A21), AUTHOR: William Boston]
(http://interactive.wsj.com/articles/SB952888998155339007.htm)

PUSH FOR NEW MAGAZINE MAY TEST AOL-TIME WARNER SYNERGY
Issue: Mergers
Susan Wyland, managing editor of Real Simple, a new magazine from Time,
showed off proof pages of the first issue. She pointed to an artful,
stylishly minimalist photograph illustrating the article "The Fastest,
Easiest Way to Clean Your Bathroom." Do photographs of toilet bowls make a
magazine? The editors of Time Inc. think so, and so does theirprospective
partner, America Online, which has been working with theReal Simple staff to

plan promotion for the magazine. Whether the affiliation with AOL helps the
introduction of Real Simple will be closely watched at Time Inc. It is, in
its relatively small way, a test run of the larger possibilities for synergy

between America Online and Time Warner. In the first month of Real Simple's
arrival,
the AOL welcome page will contain a link to a Real Simple Web site. The
site will feature AOL message boards and chat rooms concerned with Real
Simple issues. It will also have a special subscription offer for AOL
subscribers that is now planned to last at least a year. "AOL and Real
Simple have the same mission: to simplify the consumer's life," Ann S.
Moore, president of the People division of Time, which is publishing the
magazine, said.
"We can leverage the Time assets to promote the
magazine, and when you crank up AOL on top of that and use the power of
their 21 million subscribers -- well, put it this way, I have not broken out
in a sweat."
[SOURCE: The New York Times (C15), AUTHOR: Alex Kuczynski]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/13real.html)

OWNERSHIP

F.C.C. TO PROMOTE A TRADING SYSTEM TO SELL AIRWAVES
Issue: Spectrum/Ownership
Offiials at the Federal Communications Communications Commission is
preparing new rules that would create a trading system for spectrum
frequencies. Telecommunications companies of all kinds, from old-fashioned
radio stations and telephone companies to purveyors of wireless Internet
services, could bid for underused slivers of the spectrum that are already
under the control of other companies. Labton writes: It would be a radical
overhaul of the rules governing one of the most valuable, if intangible,
forms of property in the new economy: the rights to transmit electronic
signals at specific radio frequencies that constitute the spectrum. It would
also have profound implications, not only for the telecommunications
industries, but for consumers as well. Currently, the FCC grants licenses to
users for particular frequencies and signal power. Although original
licenses were given for free, they are often sold for large sums. Demand is
higher than supply causing what FCC officials term "spectrum drought."
[SOURCE: New York Times (A1), AUTHOR: Stephen Labton]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/13spec.html)

REVITALIZED UPN IS AT CENTER OF A STRUGGLE FOR OWNERSHIP
Issue: Ownership
UPN, a 50-50 partnership between Viacom and Cris-Craft, is the sixth biggest
broadcast television network. But the network is also the fastest growing
now with the addition of World Wrestling Federation programming this past
year. The WWF has helped the network build a large audience of the
highly-sought teenage male demographic. Viacom, of course, has another
little ownership deal going on: buying CBS. Viacom and CBS want UPN all to
themselves and they have given Cris-Craft an ultimatium: sell your share to
Viacom or buy out Viacom. Cris-Craft would prefer to keep the partnership to
help absorb financial loses that continue despite its recent success; it has
gone to court to stop the merger because it believes that if Viacom acquires
CBS, UPN would no longer receive proper attention. The legal point it is
making is this: Viacom is violating a clause in the partnership agreement
that Chris-Craft says forbids Viacom from making a deal with any competing
network. Viacom's position is that the merger is only proposed at this
point, not put into effect, and therefore it never violated its noncompete
deal.
[SOURCE: New York Times (C1), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/upn-future.html)
See Also:
CHRIS-CRAFT, FACING A DEADLINE, QUERIES MEDIA FIRMS ON HELPING RUN UPN
[SOURCE: Wall Street Journal (B16), AUTHOR: Martin Peers and Joe Flint]
(http://interactive.wsj.com/articles/SB952912356930694110.htm)

ED TECH

THE SOUL OF A NEW UNIVERSITY
Issue: EdTech
[Op-Ed] Information economies require higher levels of education and more
frequent education. Students are asking their relationship with their
college to be more like that with a utility company, supermarket or bank --
an emphasis on convenience, service, quality and affordability. Students are
likely to gravitate toward online instruction delivered to the home or
workplace. Textbooks are dying as learning materials are customized for each
class; distance learing allows remote professors and students to connect.
One corporate entrepreneur recently told Levin: "You know, you're in an
industry which is worth hundreds of billions of dollars, and you have a
reputation for low productivity, high cost, bad management and no use of
technology. You're going to be the next health care: a poorly managed
nonprofit industry which was overtaken by the profit-making sector." Levin
concludes: Those of us in higher education have a small amount of time to
stop and think. What is the purpose of higher education? How shall we
continue to accomplish it? Not to answer these questions is to make a
profound decision, by default, about our own prospects for the future.
[SOURCE: New York Times (A25), AUTHOR: Arthur Levin, Teachers College,
Columbia University]
(http://www.nytimes.com/yr/mo/day/oped/13levi.html)

INTERNET

CASE ILLUSTRATES ENTERTAINMENT INDUSTRY'S COPYRIGHT POWER
Issue: Internet/Copyright
Last month, after only two months of operation, the Canadian Internet
company iCraveTV.com was shut down by a lawsuit filed by the Motion
Picture Association of America(MPAA). The suit cites iCraveTV's core
business, to redistribute live broadcast television over its Web site.
It is illegal to redistribute television without first obtaining the
permission of the program's owner in the U.S.. Apparently, it is not
illegal to do so in Canada, but the MPAA argued that iCraveTV's methods
for keeping U.S. Internet users from accessing the site, such as asking
for an area code, were too easily circumvented. The company shut down
operations to avoid being liable for millions of dollars in damages, while
the company's president and co-founder, William Craig invented technology
that would make it possible to pinpoint the geographic location of any user
attempting to access the site. This new technology, many argue, would
devolve the Internet into a model very
much like the restricted, centralized control of cable television. "In
every context that it can, the entertainment industry is trying to force the
Internet into its own business model -- the perfect control of content,"
wrote the constitutional scholar Lawrence Lessig, whose column about the
iCraveTV case recently appeared in The Industry Standard. Throughout
history, innovation has been linked conclusively with the free exchange of
information and ideas -- by means of the public library system, in the
previous millennium, and certainly via the Internet today. If everyone
hermetically seals their content with technology, Peter Jaszi, a law
professor at American University in Washington says, "we could well end up
with a world where we have very strong protection for a rather limited range
of ultimately not very interesting content."
[SOURCE: The New York Times (C4), AUTHOR: Denise Caruso]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/13digi.html)

CHINA REVERSES HARSH INTERNET RULES, EASING THREAT TO TRADE
Issue: International/Internet
China passed a new regulation which reverses a previous order that banned
products containing foreign-designed encryption software. The ban had
threatened to escalate into a trade dispute between US and China. What the
new regulation doesn't address is the requirement of foreign companies to
register the type of encryption software they use, list what employees use
it, and provide the employee's location and phone number. While all foreign
companies were supposed to complete the first round of registration by Jan.
31, few did. The Chinese commission responsible for the new regulation also
confirmed it will not introduce a "key escrow" system in which encryption
passwords must be provided to a third party, which in turn could provide the
passwords to the Chinese government. The commission acknowledged that
foreign pressure, along with China's efforts to gain admission to the World
Trade Organization, led to the changes.
[SOURCE: Wall Street Journal (A21), AUTHOR: Matt Forney]
(http://interactive.wsj.com/articles/SB95288825566411888.htm)

SENIOR SURFERS RUSHING ONLINE
Issue: Internet
Contrary to popular stereotypes, older adults are already the
fastest-growing segment of the Web market and spend more time--and
money--online individually than those in other age groups, studies show.
They are flocking to the Web in droves, as a way to make friends, find
bargains and stay connected with their tech-savvy grandchildren. "There's
fickleness to youth, but there's loyalty in older people," said Stephen
Yafa, of www.Seniors.com, a three-year-old
Web site. "They are the last frontier." But for many seniors, cost remains a
barrier. Even with prices plummeting, a $500 entry-level personal computer
is a big investment for someone on a fixed income. Additionally, arthritis
and failing eyesight can make computer and Internet use difficult for older
adults. But more companies are offering software programs that allow voice
commands, and products like ZoomText allow users to enlarge words on the
screen for easier reading. "At my age now, everybody wants to use it," said
Bohie Herzer, 69, of Alexandria, VA. "It's getting to the point where,
without a computer, you can't live."
[SOURCE: Washington Post (A1), AUTHOR: Dan Eggen]
(http://washingtonpost.com/wp-dyn/articles/A61895-2000Mar12.html)

INTERNET INSTILLS FAMILY VALUES -- REALLY
Issue: Internet
[OP-ED] When the study came out last month claiming that some people are
spending too much time on the Internet and not enough time living real life,
Alcestis "Cooky" Oberg laughed. In the right hands, she writes, that
computer mouse can actually take you over the rougher bumps on real life's
road. Take adolescence. When kids hit that uncommunicative, "I don't know
those people who call themselves my parents" stage, you can reach your kids
by e-mail. For instance, even though they lived under the same roof, she
found she could get a good, long, sometimes funny e-mail response from her
teenager during "the surly years." "I never would have gotten beyond
monosyllables and guttural utterances in face-to-face real life, " she says.
She also adds that Internet has turned out to be a new, fairly wholesome
vehicle for socializing teens -- safer than fast cars and seedy hangouts.
One shy boy she knows set up a virtual drama club on the Net, with 150 kids
across the nation. Then there's Virtual Granny. When her husband's mom
visited , he introduced her to the joys of e-mail, file-attach photos, eBay,
Amazon and the virtual portfolio. She took to it all like a born nerd. She
found old pals, communicated with nieces and grandchildren, bought stuff to
be delivered to her doorstep at the click of a mouse. Anyone who accuses the
Internet of taking too much time away from "real life" must first consider
what that real life is. The elderly, for instance, are often shut in and
isolated by their health. Sometimes, they are "retired" to a different city,
uprooted from their old hometowns where they spent most of their lives and
raised their families.
[SOURCE: USAToday (15A), AUTHOR: Alcestis ''Cooky'' Oberg]
(http://www.usatoday.com/usatonline/20000313/2023485s.htm)

WHAT

INTERNET GOVERNANCE
Government Officials Join Voices Urging Caution on Internet
Oversight
Vote (NYT)
Controversy Swirls Around Cyberspace Report (USA)
Estee Lauder Gains Victory in Suit Over Web Use of Its Trademark
(WSJ)

WOMEN AND TECHNOLOGY
For Museum, Online Way Is Only Way, for Now (NYT)
The Dot-Com World Opens New Opportunities for Women to Lead (NYT)

CIVIC ENGAGEMENT
2000 Census (Shhh!) on the Net (NYT)
Thousands Vote Online in Arizona (NYT)

BROADBAND
High-speed Access Prices Tumbling (SJM)

TELEPHONY
In Never-Bell Land, Phone Service Is Way Above Average, and
Competitive
(NYT)
Truth in Telephone Billing Act of 1999 Hearing (House)

DTV
FCC Commences Periodic Review of Digital Television Conversion
(FCC)

INTERNATIONAL
German Giant Seeks Qwest and U.S. West (WSJ)
U.S. Deputy Commerce Secretary Robert L. Mallett To Lead U.S.
Delegation
To Fifth Annual Latin American Telecommunications Summit
(NTIA)

INTERNET GOVERNANCE

GOVERNMENT OFFICIALS JOIN VOICES URGING CAUTION ON INTERNET OVERSIGHT
VOTE
Issue: Internet
As members of the Internet Corporation for Assigned Names and Numbers
(ICANN) met in Cairo, officials from more than 20 countries were
calling for the group to be more cautious about the elections the group
has planned for September. This came just after public interest groups
issued a report last week saying that ICANN would have to make
significant changes before a fair vote, free from the influence of
special interests, would be possible. As the first experiment in
Internet democracy, the vote will be the first step in electing a new
board for ICANN, replacing the interim board that was appointed in 1998
after the Clinton administration selected ICANN to take over the
administrative functions of the Internet's addressing, or domain name,
system. And those interim board members are eager to hand over the
reigns. However, ICANN's president, Mike Roberts, said the board would
keep an open mind until it makes a final decision on the election
process on Friday. "A lot of the proposals want a delay just so we can
look at it some more," he said. "We've been looking at it for a year
and a half."
[SOURCE: Cyber Times, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/03/cyber/articles/09domain.html
)

ESTEE LAUDER GAINS VICTORY IN SUIT OVER WEB USE OF ITS TRADEMARK
Issue: Intellectual Property
Estee Lauder announced a victory in Germany's District Court of Hamburg
over Internet companies Excite and iBeauty, forcing both to stop using
certain Estee Lauder trademarks as keywords to trigger banner ads on
Web sites. Keywords are terms entered into Internet search engines to
find information online. Such words have been sold to advertisers, who
want their banner ads to pop up when the words are entered. This case
has major implications for sites across the Web since keyword-based ads
currently generate hundreds of millions of dollars in revenue. Drew
Ianni, an analyst for Jupiter Communications, said that the German
decision, "is at least the first precedent out there in cyberspace
related to this type of conflict." Estee Lauder has filed similar suits
against iBeauty and Excite, in France and federal court in New York.
[SOURCE: Wall Street Journal (B14), AUTHOR: Karen Jones]
(http://interactive.wsj.com/articles/SB952566850153204842.htm)

CONTROVERSY SWIRLS AROUND CYBERSPACE REPORT
Issue: Privacy/Security
Attorney General Janet Reno will release a report today that seeks to
expand the powers of law enforcement to conduct investigations in
cyberspace. The report is the product of a presidential working group
that was appointed last summer. It recommends a loosening of
restrictions on several technical and legal procedures that would make it
easier to identify and track individual Internet users. "They make the
assertion that there is all this illegal conduct on the Internet that
they must investigate, but nowhere in the report do they show any
numbers or proof," says Emily Whitfield of the American Civil Liberties
Union, which asked Reno in a letter to reject the report's conclusions.
"The report treats anonymity of Internet users as a 'thorny issue,'
rather than a constitutional right," says the ACLU letter.
[SOURCE: USAToday (4A), AUTHOR: M.J. Zuckerman and Kevin Johnson]
(http://www.usatoday.com/usatonline/20000309/2012177s.htm)

WOMEN AND TECHNOLOGY

THE DOT-COM WORLD OPENS NEW OPPORTUNITIES FOR WOMEN TO LEAD
Issue: Gender/Employment
Women are using Internet companies to find opportunities that are equal
or better to those found in more traditional "brick an mortar"
companies. As reported by the research firm VentureOne, women were
chief executives in about 6% of venture capital backed Internet firms
and held top management positions in 45% of such start-ups in 1999. In
1998, women held the chief executive position 4% of the time and
accounted for 21% of senior management positions. These numbers are
much different than those in the "brick and mortar" world. There, as
found in a 1998 census conducted by the women's research firm Catalyst,
women occupied fewer than 1% of the chief executive positions and only
3.8% of the highest ranking corporate officer positions. Internet
companies are, "definitely causing a leveling of the playing field"
said Denise Brosseau, the president of the Forum for Women
Entrepreneurs. The main reason Internet opportunities are in such
abundance for women is that there is an unquenchable need for talent.
But, Gayle Crowell of epiphany.net argues that the Internet is a whole
new playing field, "it's about brand building and knowing the consumer,
and women are great at that."
[SOURCE: The New York Times (C1), AUTHOR: Leslie Kaufman]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/09net.html)

FOR MUSEUM, ONLINE WAY IS ONLY WAY, FOR NOW
Issue: Media & Society
After nearly a decade of planning, the Women of the West Museum has
finally opened. At least virtually. When the museum's backers couldn't
raise enough money for a building, they decided to open a location on
the Web. The museum's first exhibition, the LoDo Mural Project,
combines a public mural project in downtown Denver with corresponding
online images and text. "Originally the museum was going to be a
bricks-and-mortar stand-alone facility," said Marsha Semmel, president
and chief executive of the Women of the West Museum, based in Boulder,
Colo. "What we are doing is what many businesses are doing -- adapting
to the changing ways people spend their time and get their information.
As if to underscore the breadth of the museum's reach, Semmel adds:
"When our site was named a Yahoo pick-of-the-week, we heard about it
from a male engineering student in Shanghai who e-mailed us." Visitors
to the site can learn about pioneer and contemporary women who helped
shape the West, like Molly Brown (the unsinkable Titanic passenger) and
Teresita Sandoval, one of the 1800's founders of Pueblo, Colorado.
[SOURCE: The New York Times (G11), AUTHOR: Mindy Sink]
(http://www.nytimes.com/library/tech/00/03/circuits/articles/09west.htm
l)

CIVIC ENGAGEMENT

2000 CENSUS (SHHH!) ON THE NET
Issue: Internet
The Census Bureau has a secret: people in many parts of the country
will be able to fill out their census forms online. Even as the Bureau
has embarked upon a massive advertising campaign to get people to
participate in the census, it has not said much at all about the online
version. Edison Gore, assistant division chief for field programs at
the Census Bureau, said census officials prefer that people stick to
the "tried and proven" method of pen and paper. "We know what's going
on there, and it's very controlled. The Internet is something new."
This time out, only households that receive the shorter of the two
census forms (about five out of every six households nationwide) may
submit their information electronically, others must stick to the paper
form. And even those who wish to submit the information electronically will
still need the paper form, each of which contains a bar code with a 22-
digit number that must be entered to call up the on-screen version. The
site, which is off of the main census site, (www.census.gov), provides
guidance for completing the form. And if people run into trouble, the
site suggests they give up and revert to the paper form. It is unclear
whether the Internet will help the census in its primary goal of
increasing the response rate. Census officials say that Internet
collection is unlikely to encourage responses among the poor and other
groups that traditionally do not answer the census.
[SOURCE: The New York Times (G11), AUTHOR: Joyce Cohen]
(http://www.nytimes.com/library/tech/00/03/circuits/articles/09cens.htm
l)

THOUSANDS VOTE ONLINE IN ARIZONA
Issue: Internet
More than 17,000 Democrats in Arizona have cast ballots via the Internet in
the first two days of voting during a primary billed as the first
binding online election. Despite technical glitches and a federal
lawsuit that sought to block the Internet voting, more than 13,000 votes
had been cast online by the end of Tuesday. "This election was about
expanding opportunities to participate," said Mark Fleisher, chairman
of the state party. A United States District Court judge rejected a
request for a temporary injunction against the Internet vote last week.
The Voting Integrity Project, a nonprofit voting rights group based in
Virginia, challenged the Internet election on the ground that
minorities and the poor would not have equal access to voting. Deborah
Phillips, president of the Voting Integrity Project, said the group
hopes to challenge the Arizona election in court after the vote is
final.
[SOURCE: Cyber Times, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/00/03/cyber/articles/09vote.html)

BROADBAND

HIGH-SPEED ACCESS PRICES TUMBLING
Issue: Internet
High speed Internet access prices are falling, as competition between
providers has already helped cut $300 off of the price of the first
year of service. Traditional Internet service providers are scrambling
to enter the high-speed access market, and a favorable federal
regulatory ruling could help them push prices down even further this
year. New regulations -- which take effect later this summer -- slash
the fee competitors must pay to the local phone company to gain access
to a customer's home by 75 percent. This has observers predicting the
monthly cost of DSL could go as low as $29.95 by the end of the year.
That may be low enough to convince a typical consumer who is paying
$21.95 each month to an ISP. "Everybody is running to grab customers,"
said Liz Fetter, CEO of NorthPoint Communications, which offers high-
speed Internet services. Together, high-speed cable and DSL connections
account for about 5 percent of homes with Internet access in the United
States and Canada today, said Kinetic Strategies president Michael
Harris. "In the long run, pricing of DSL won't be important," said
Kevin Mitchell, an analyst for Infonetics Research. "Companies will be
giving it away."
[SOURCE: San Jose Mercury News, AUTHOR: Chris O'Brien]
(http://www.mercurycenter.com/svtech/news/indepth/docs/dsl030900.htm)

TELEPHONY

IN NEVER-BELL LAND, PHONE SERVICE IS WAY ABOVE AVERAGE, AND COMPETITIVE
Issue: Telephony
Somewhat lost among the giant telecommunications firms are the more
than 1,000 small independent phone companies providing services in
mostly rural areas of the US. As phone service becomes an increasingly
important economic factor, little phone companies that serve out-of-
the-way communities find themselves in demand by new business. Set up
to serve the more costly low-population areas, they are finding that
they can branch out into neighboring towns without much added expense.
This is a result of the Telecommunications Act of 1996, which allowed
federal regulators to push down the cost of leasing phone lines to
jump-start competition. But independents that do not grow seem to be
heading for consolidation. In the past, former Bell companies weren't
interested in consolidating independents because arcane regulations
made the acquisitions too costly. Now, companies that specialize in
acquiring rural telecommunications businesses are snapping up local
access lines at $2,400 to $5,000 each. Those independents that are not
selling are upgrading, installing fiber optic lines and offering
Internet access with high-speed connections.
[SOURCE: The New York Times (C1), AUTHOR: Julie Flaherty]
(http://www.nytimes.com/yr/mo/day/news/financial/richmond-phones.html)

TRUTH IN TELEPHONE BILLING ACT OF 1999 HEARING
Issue: Telephony
Legislative Hearing H.R. 3011, the Truth in Telephone Billing Act of
1999 and H.R. 3022, the Rest of the Truth in Telephone Billing Act of
1999 Subcommittee on Telecommunications Trade & Consumer Protection
March 9, 2000 10:00 AM 2322 Rayburn House Office Building Live Audio
Broadcast
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/ba047f137cab5f9e8525689c0070d8fb?OpenDocument)

DTV

FCC COMMENCES PERIODIC REVIEW OF DIGITAL TELEVISION CONVERSION
Issue:
The FCC today began its first periodic review of the progress of
conversion of the U.S. television system from analog technology to
digital television (DTV). The Commission noted that broadcast stations
are facing relatively few technical problems in building digital
facilities, and that problems encountered by some stations with tower
availability and/or local zoning issues do not seem to be widespread.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/2000/nrmm0005.html
)

INTERNATI0NAL

GERMAN GIANT SEEKS QWEST AND U.S. WEST
Issue: Mergers
Deutsche Telekom made separate offers to acquire Qwest and US West,
deals that could total more than $100 billion. Qwest and U.S. West had
agreed to merge last summer but it was only recently that U.S. West
became aware of Qwest's conversations with a major telecommunications
firm, thought to be Deutsche Telekom. Many of the regulators in the 14
states in which US West has a presence had already agreed to the Qwest-
US West merger. If Deutsche Telekom were to secure a deal with Qwest,
the entire process would have to be restarted. Deutsche Telekom's
intent in offering two separate deals is to give Qwest the bulk of the
premium it is willing to pay for both companies, but show respect for
Qwest's deal with US West.
[SOURCE: Wall Street Journal(A3), AUTHOR: Rebecca Blumenstein]
(http://interactive.wsj.com/articles/SB952556369441537877.htm)

U.S. DEPUTY COMMERCE SECRETARY ROBERT L. MALLETT TO LEAD U.S.
DELEGATION TO FIFTH ANNUAL LATIN AMERICAN TELECOMMUNICATIONS SUMMIT
Issue: International
U.S. Deputy Secretary of Commerce Robert L. Mallett and Peru's Minister
of Transportation, Communications and Construction, Alberto Pandolfi
will co-host the fifth Latin American Telecommunications Summit in
Lima, Peru March 13-16, 2000. The Ministerial-level conference provides
an opportunity for senior U.S. and Latin American government officials
and telecommunications industry leaders to discuss major policy issues
affecting the region.
[SOURCE: NTIA]
(http://204.193.246.62/public.nsf/docs/8C90FBD7182638498525689B007608D0
)

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

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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), 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)
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Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

POLITICAL DISCOURSE
Networks Plan Sweeping Coverage of Primaries (NYT)

INTERNET
ICANN Says U.S. Will Let It Prosecute Cybersquatters, Domain
Profiteers (WSJ)
Online Mental-Health Therapy In Its Formative Years (USA)
Free-Speech Fight Over Webmaster (SJM)

PRIVACY
Commission Will Work to Protect Children after Legislation Fails
(CyberTimes)

INTELLECTUAL PROPERTY
Outrage Pending Over Net Patents Grants Seen As Helping Businesses
While Harming Free Exchange Of Ideas (USA)

MERGERS
Verisign to Buy Network Solutions in Stock Swap Valued at $21
Billion (WSJ)
Radio Giant Clear Channel Agrees to Sell 72 Stations (WP)
Qwest Deal With US West Casts Shadow over Merger (WP)

WIRELESS
Race for Wireless Takes Off in Europe (WSJ)

POLITICAL DISCOURSE

NETWORKS PLAN SWEEPING COVERAGE OF PRIMARIES
Issue: Television/Political Discourse
The three major broadcast networks and their cable counterparts will provide
coverage of today's presidential primaries that will almost resemble
coverage of a general election. ABC, CBS and NBC will be updating their
evening news broadcasts and breaking into regular programming with the
latest news as polls close in 16 states across four time zones. The cable
news channels, including CNN, Fox News and MSNBC, will offer nonstop
election news beginning early in the evening. The broadcast networks are
hoping that they will share in some of the audience growth that the cable
networks have experienced during recent primary coverage. Both cable and
broadcast networks are concerned, however, that early results of the exit
polls will be posted on the Internet. Slate, the online magazine, posted the
overall results of a news service poll as the votes were still being cast in
New Hampshire and South Carolina.
[SOURCE: New York Times (A17), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/library/politics/camp/030700wh-media.html)

INTERNET

ICANN SAYS U.S. WILL LET IT PROSECUTE CYBERSQUATTERS, DOMAIN PROFITEERS
Issue: Internet
The U.S. government is against empowering ICANN, the organization
responsible for maintaining the Internet-address system, to prosecute
domain-name profiteers, saying instead that it would prefer ICANN, "remain a
private-sector entity that can move quickly with some agility," commented
ICANN's chief executive officer Michael Roberts. ICANN is currently trying
to help American Samoa regain ownership of its top-level domain name --
".as" in this case -- from an American Samoan who bought the domain name in
1997. Top-level domain names are the two letters given to every country as
suffixes on a Web address to identify that country on the Internet. American
Somoans are beginning to realize the commercial potential of their domain
names and are increasingly turning to ICANN for help in restoring what they
feel is their exclusive property.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Dow Jones Newswire]
(http://interactive.wsj.com/articles/SB952374963886664359.htm)

FREE-SPEECH FIGHT OVER WEBMASTER
Issue: Internet/Free-speech
Daniel Curzon-Brown, a veteran English teacher at City College of San
Francisco, is suing the Webmaster of Teacherreview.com, after postings on
the site called him "homomaniac" and "mentally ill". The site posts
anonymous critiques of instructors at the college. Curzon-Brown claims the
Webmaster, who is responsible for maintaining the site, should also be
responsible for any lies and libelous material posted online. Opponents to
the lawsuit say that a Webmaster should be granted the same immunity from
libel as an Internet service provider (ISP). Unlike newspaper publishers,
who are responsible for all material printed in their newspapers, an ISP is
not liable if a third party provided the information. "I haven't done
anything wrong," said the Webmaster, "I'm just a conduit for opinion." The
suit also names the college and its student government body for having
linked their sites to -- and implicitly endorsed -- Teacherreview.com. "This
is a very important case," said Ann Brick of the ACLU in San Francisco.
"Sites like this are the quintessential forum for expression of
opinion...The First Amendment protects comments that are both unkind and
flattering."
[SOURCE: San Jose Mercury Times Interactive, AUTHOR: Lisa Fernandez]
(http://www.mercurycenter.com/svtech/news/indepth/docs/webwar030700.htm)

ONLINE MENTAL-HEALTH THERAPY IN ITS FORMATIVE YEARS
Issue: Internet/Health
While the number of Internet mental-health services are growing rapidly,
there's still no solid evidence that good therapy can be done online,
experts say. "A lot of concern remains about doing online therapy because we
don't have the research yet to show it's safe and effective. I think what's
going on is not therapy, it's education,'' says psychologist John Grohol, an
online mental-health pioneer from Austin, Texas. According to Grohal, the
Web has an estimated 12,000 mental-health sites. A new kind of relationship
is forming here that a lot of people aren't talking about," he says. "It
remains to be seen whether this is a viable relationship in and of itself,
or if it's only an adjunct to a real-world therapist." Confidentiality is a
major concern about such services provided online.
[SOURCE: USAToday (3D), AUTHOR: Marilyn Elias]
(http://www.usatoday.com/usatonline/20000307/2004044s.htm)

PRIVACY

COMMISSION WILL WORK TO PROTECT CHILDREN AFTER LEGISLATION FAILS
Issue: Internet
The 19-member, Commission on Child Online Protection will meet for the first
time next week, over a year after it was created after First Amendment
problems scuttled two laws aimed at shielding children from online
pornography. The commission is made up of a diverse group of children's
advocates, administration officials, industry representatives and academics.
Commission member Larry Shapiro, who heads Go.com, a portal for Disney Web
sites, said of the group: "There is a call to action for a private
initiative to make things happen, and I'm hoping that we will be able to
coalesce around a position that makes sense, that provides significant
opportunity for parents to know about protective devices -- whether they are
technical or educational tools -- and that there will be an Internet
community out there that adopts these principles."
[SOURCE: Cyber Times, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/03/cyber/capital/07capital.html)

INTELLECTUAL PROPERTY

OUTRAGE PENDING OVER NET PATENTS GRANTS SEEN AS HELPING BUSINESSES WHILE
HARMING FREE EXCHANGE OF IDEAS
Issue: Intellectual Property
The Internet community has been outraged by a recent patent that some
believe benefits commercial interests at the expense of the Web as a whole.
Last Friday it was announced that the patent office had granted Amazon.com a
patent on its affiliate program -- the arrangement through which Web sites
that link to Amazon get a cut of all the purchases that were referred from
their site. It is currently estimated that up to 20% of Web site sales come
via affiliates, says Herby Olschewski, convention chairman for
AffiliateForce.com. Tim O'Reilly, a publisher of computer books and an
activist for open source, calls patents like Amazon's a rip-off , and
believes it signals a major change in the way the Internet works. "They're
profiting from all the things that came before," he says. "The people who
are filing these patents come in as parasites."
[SOURCE: USAToday (3D), AUTHOR: Elizabeth Weise]
(http://www.usatoday.com/usatonline/20000307/2004041s.htm)

MERGERS

VERISIGN TO BUY NETWORK SOLUTIONS IN STOCK SWAP VALUED A $21 BILLION
Issue: Mergers
Internet software maker VeriSign said today that it has agreed to acquire
Web domain-name registrar Network Solutions in an all-stock transaction the
companies valued at $21 billion. The deal combines two Internet leaders:
Network Solutions provides registration services for companies and
individuals seeking Web addresses, and VeriSign is the largest provider of
data-security software that assists in electronic commerce over the
Internet. The deal is expected to close in the third quarter.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Wall Street Journal Staff
Reporter]
(http://interactive.wsj.com/articles/SB952433102500587435.htm)

RADIO GIANT CLEAR CHANNEL AGREES TO SELL 72 STATIONS
Issue: Mergers
In a move designed to put to rest potential antitrust problems concerning
its pending acquisition of AMFM Inc., Clear Channel Communications will sell
off 72 radio stations in 27 markets. The company announced its plans to buy
AMFM last fall. At the time, it said that it would sell off 125 stations.
The current round of sales is subject to regulatory approval, but more sales
should be announced soon. The merger of Clear Channel and AMFM will create a
radio giant with 800 stations nationwide. Last week, Clear Channel announced
that it would buy concert promoter SFX for $2.9 billion in stock.
[SOURCE: Washington Post (E3), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/business/feed/a22918-2000mar7.htm)
SEE ALSO: CLEAR CHANNEL SELLS STATIONS TO QUELL ANTITRUST CONCERNS
[SOURCE: Wall Street Journal Interactive, AUTHOR: J.C. Conklin]
(http://interactive.wsj.com/articles/SB952350688604039684.htm)

QWEST DEAL WITH US WEST CASTS SHADOW OVER MERGER
Issue: Mergers
After stealing US West away from Global Crossing, Qwest looks like it's
going to throw it over for Deutsche Telekom [you know, the exchange student
with the motor scooter]. To add to the confusion Bell South [who has had a
major thing for Qwest since like freshman year] still has its sights set on
Qwest [but that won't work if Qwest hooks up US West first]. The US
West/Qwest deal has been gliding toward seemingly certain regulatory
approval. But what happens to US West if Qwest strikes a deal with Deutsche
Telekom [a matter of much cafeteria speculation]? "Why would they want to
get out of the deal?" asked Burgess, the US West spokesman. "Qwest has big
pipes that they have to
fill, and we've got 25 million customers."
[SOURCE: Washington Post (E1), AUTHOR: Peter S. Goodman]
(http://www.washingtonpost.com/wp-dyn/business/A20979-2000Mar6.html)

WIRELESS

RACE FOR WIRELESS TAKES OFF IN EUROPE
Issue: Wireless
Initial bids totaling nearly $789 million were put forward yesterday as
companies competed in the first round of a British auction for five "third
generation", or 3G, wireless licenses. In the next 18 months, approximately
70 additional licenses will be issued in the rest of Europe. The licenses
are valuable because they would allow millions of Europeans who don't own
personal computers to access the Web via their cell phones. 3G phones could
generate $13 billion of e-commerce world-wide by 2003. "If you lose a 3G
license, you're out of the game for 10 years," says John Jensen of Chase
Manhattan Corp. The auction system could lead to inflated license prices, as
happened with the U.S. digital-wireless auctions a few years ago. Japan is
expected to be the first country in the world to offer 3G wireless services,
starting next year, followed by Finland and Britain.
[SOURCE: Wall Street Journal (A18), AUTHOR: Gautam Naik]
(http://interactive.wsj.com/articles/SB952382249379493508.htm)

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