May 2000

ECOMMERCE
Opponent of E-Commerce Tax Floats 'Fast Track' Compromise (WSJ)

INTELLECTUAL PROPERTY
The Concept of Copyright Fights for Internet Survival (NYT)
Judge Dismisses One of Sun's Claims Against Microsoft in
Ongoing Lawsuit (WSJ)
Intel Plans to Release Details Of Microprocessor Via
the Internet (WSJ)

EDTECH
Networking in the Woods: Summer Tech Camp for Teachers (CyberTimes)

TELECOMMUNICATIONS
House Commerce Mark-up Schedule (House)
Forum Connection (CRF)

CABLE
Speech: Lessons from the Front: When is Pulling the
Plug the Right Answer? (FCC)

INTERNATIONAL
Japanese Company to Acquire KPN Mobile (NYT)
World Radiocommunication Conference (NTIA)

ADVERTISING
Advertising: What Is a Dot-Com Brand Name Worth? (NYT)

ECOMMERCE

OPPONENT OF E-COMMERCE TAX FLOATS 'FAST TRACK' COMPROMISE
Issue: Ecommerce
Sen. Ron Wyden (D-OR) is circulating draft legislation that calls for future
"fast-track" congressional votes on the issue of taxes on Internet commerce.
Legislation to ban new taxes targeting the Internet for five years is
stalled in the Senate, where some members are demanding that Congress
address a perceived inequity between the treatment of online and offline
commerce. Sen. Wyden's legislation is an attempt to break the deadlock. It
calls for an up or down vote in five years on giving states and localities
new tax-collection powers, after they simplify their tax systems. States
currently lack the legal power to collect sales taxes on interstate Internet
transactions. "I believe this is a true olive branch," he said. Sen. Byron
Dorgan (D-SD) is also drafting a proposal to break the deadlock. His
proposal would allow for sales tax collections to begin automatically in a
few years, after states move to simplify their tax systems, unless Congress
votes to object. Sen Wyden and other Internet-friendly legislators are eager
to win renewal of the current moratorium on new Internet-related taxes,
which is set to expire next year.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB957915807241662338.htm)
See Also:
A DEMAGOGIC BILL
[SOURCE: Washington Post (A28), AUTHOR: WP Editorial Staff]
(http://washingtonpost.com/wp-dyn/articles/A37372-2000May9.html)
CONGRESS TO BLOCK IMAGINARY INTERNET TAX BILL
[SOURCE: Washington Post (E1), AUTHOR: Peter Goodman]
(http://washingtonpost.com/wp-dyn/articles/A35483-2000May9.html)

INTELLECTUAL PROPERTY

THE CONCEPT OF COPYRIGHT FIGHTS FOR INTERNET SURVIVAL
Issue: Intellectual Property
"If this whole thing catches on, I think that people will look back in 20 to
40 years and look at the idea that you can own information in the same way
as gold or real estate in the same way we look at witch burning today."
'This' is computer software that could make it impossible to track the
swapping of digital data. The programmer, Ian Clarke of Ireland, hopes to
produce a world in which all information is freely shared. His work is set
for a collision course with the world's copyright laws. Mr Clarke and many
other programmers think that copyright protection is simply obsolete in the
Internet Age. Check out the debate at the URL below.
[SOURCE: New York Times (A1), AUTHOR: John Markoff]
(http://www.nytimes.com/library/tech/00/05/biztech/articles/10digital.html)

JUDGE DISMISSES ONE OF SUN'S CLAIMS AGAINST MICROSOFT IN ONGOING LAWSUIT
Issue: Intellectual Property
Judge Ronald Whyte of the U.S. District Court in San Jose (CA), dismissed
the claim that Microsoft had violated Sun Microsystems copyrights with its
version of Java. This ruling centers on a case that dates back to 1997, when
Sun charged that Microsoft violated the terms of a licensing agreement and
infringed Sun's copyrights when it modified its version of Java to include
elements that would only work with Windows. Java is a computer language
designed to build programs that can run on any computer without major
changes. But this ruling isn't necessarily a win for Microsoft. Microsoft
remains bound by a preliminary injunction that prohibits it from
distributing versions of Java that are incompatible with Sun's
prescriptions. And it's the Sun-standard Java that continues to make inroads
for use on Internet servers and in big data centers.
[SOURCE: Wall Street Journal Interactive, AUTHOR: David Hamilton]
(http://interactive.wsj.com/articles/SB957874953919473783.htm)

INTEL PLANS TO RELEASE DETAILS OF MICROPROCESSOR VIA THE INTERNET
Issue: Intellectual Property
Intel plans to release this Wednesday, via the Internet, its "Itanium
Processor Microarchitecture Reference", which (for us lay people) means the
nitty-gritty details on how its Itanium chip manages data memory. Such
technical detail has usually been disclosed by Intel to only a select few
partners such as Microsoft and personal-computer makers, and only after they
had signed a nondisclosure agreement. So why is Intel putting this
information on the Internet for all to view? The answer is Linux. Linux is
an "open source" software that is used on many server computers that run Web
sites. In posting detailed information about the Itanium chip on the
Internet, Intel hopes to boost the use of Linux with its chips. While there
is a tradeoff in disclosing so much information about a chip well before its
release (Intel's competitors can find ways to position themselves against
the Itanium chip)there are also some industry upsides. Other companies are
now more apt to release software tools related to Itanium, such as Silicon
Graphics planned release of an open-source version of its Itanium compiler.
[SOURCE: Wall Street Journal Interactive, AUTHOR: David Hamilton]
(http://interactive.wsj.com/articles/SB957908075498923116.htm)

EDTECH

NETWORKING IN THE WOODS: SUMMER TECH CAMP FOR TEACHERS
Issue: EdTech
A look at "Get Wired at the Lake." About 30 to 45 "campers" from around the
country spend a week in eight cabins at Camp Kiwanis, at a cost to the
participants' schools of about $400 each. The networking teams first wire
their cabin and network a handful of computers to learn how to set up a
classroom network. The concept then expands so that each cabin represents an
individual school building, and by the end of the week all eight cabins are
networked as if they were part of a school district. Caleb Schutz, vice
president and executive director of the MCI WorldCom Foundation, said there
are benefits and drawbacks to the summer programs. "During the school year,
the benefit is the teacher can leave the training session and go back into
the classroom and use it," Schutz said. "In the summer, there's more time
for the teacher to think about how to integrate the program into their
class, but they can't use it right away."
[SOURCE: CyberTimes, AUTHOR: Rebecca Weiner]
(http://www.nytimes.com/library/tech/00/05/cyber/education/10education.html)

TELECOMMUNICATIONS

HOUSE COMMERCE MARK-UP SCHEDULE
Issue: Legislation
Today at 11:30 a.m. in 2123 Rayburn House Office Building The Full Committee
on Commerce markup of H.R. 1291, To prohibit the imposition of access
charges on Internet service providers, and for other purposes.
Immediately Following the Full Committee Markup in 2123 Rayburn House Office
Building The Subcommittee on Telecommunications, Trade, and Consumer
Protection will meet to markup H.R. 4201, the Noncommercial Broadcasting
Freedom of Expression Act of 2000, and H.R. 3489, the Wireless
Telecommunications Sourcing and Privacy Act.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

FORUM CONNECTION
Issue: Telecommunications Policy
This month's Forum Connection, a publication of the Civil Rights Forum on
Communications Policy, is available at the URL below. Stories include: House
Moves to Curtail Low-Power FM; Privacy and Telephony; Families of Inmates
Find Phone Bills Hard to Handle; E-Rate and Rural America; Sen John McCain's
record and an interview with the DoJ's Joel Klein [insert "The News Hour"
theme song here]
[SOURCE: Civil Rights Forum on Communications Policy]
(http://www.civilrightsforum.org/connectionmay2000.html)

CABLE

SPEECH: LESSONS FROM THE FRONT: WHEN IS PULLING THE PLUG THE RIGHT ANSWER?
Issue: Cable
FCC Chairman Kennard's 5/9/2000 remarks before the National Cable Television
Association. From Press Release: The Chairman said, "I believe that in this
robust technological age, market-based solutions are the best and most
efficient ways to satisfy the demands of American consumers." He challenged
the cable industry to "police your own" before consumers demand governmental
action to prevent future program disruptions of the kind that resulted last
week from a retransmission dispute between Time Warner and Disney/ABC. He
added, "The dispute between Time Warner and Disney/ABC raised demons of
distrust among consumers." He warned the industry that consumers can and
will exercise their choices in a competitive marketplace. He said,
"Customers will turn more and more to the non-cable alternatives that are
increasingly available." Chairman Kennard called upon the industry to
acknowledge the critical public interest impact of its activities, and to be
bound by that responsibility. Noting that the essential business of the
cable industry is to promote "the free-flow of ideas," he said cable "can
maximize its good market position by using its systems as launching pads to
openness for its customers and for the American public."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/2000/stwek037.html)

INTERNATIONAL

JAPANESE COMPANY TO ACQUIRE KPN MOBILE
Issue: Mergers
Japan's largest wireless phone carrier, NTT DoCoMo, has agreed to buy a 15%
stake in Dutch mobile phone operator KPN Mobile for $4.5 billion. The deal
is part of Nippon Telegraph & Telephone's expansion beyond Japan. NTT DoCoMo
and KPN may now team up to bid for Britain's 3rd-largest telephone operator,
Orange. Vodafone AirTouch is expected to sell off Orange as a condition of
its $183 billion acquisition of Mannesmann AG. Orange may sell for as much
as $50 billion.
[SOURCE: New York Times (C4), AUTHOR: Andrew Ross Sorkin]
(http://www.nytimes.com/yr/mo/day/news/financial/japan-phone.html)

WORLD RADIOCOMMUNICATION CONFERENCE
Issue: International
From Press Release: Development of new wireless communications technologies,
such as wireless Internet access, will be a major focus at the World
Radiocommunication Conference (WRC) on the allocation of radio frequency
spectrum, which has convened in Istanbul, Turkey. One of the key issues to
be discussed at the conference is the development of the next generation of
wireless services, referred to as "IMT-2000", which range from voice, data,
and video services, including Internet access. Representatives from over 150
countries are attending, including a U.S. delegation of government and
private sector experts. WRC is a major international conference convened
every 2 or 3 years by the International Telecommunications Union to discuss
radio spectrum allocation issues. The conference has become increasingly
important as the demand for wireless communications services has grown in
both private and public sectors of the U.S. and other nations.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/new.html)

ADVERTISING

ADVERTISING: WHAT IS A DOT-COM BRAND NAME WORTH?
Issue: Advertising
A study by Greenfield Online released last month tries to identify who is
winning the branding battle in the dot com world. Greenfield surveyed about
3,400 computer users. Among 100 Internet names placed before the
respondents, Microsoft.com has the highest "brand power," defined as a
combination of rankings in three categories: brand familiarity, the brand's
ability to effect the Internet landscape and the brand's perceived financial
strength. The software giant was followed by Amazon, Netscape, AOL and eBay.
"In terms of branding efforts, it's important to know if a site is having a
personal effect on an Internet user," said Mara Shelby, vice president for
client development at Greenfield, adding that sites perceived by computer
users as being fun and frequently updated are more likely to be visited
regularly. The idea, as Ms. Shelby puts it, is to "keep people coming back
for more." The top 5 brands respondents were likely to invest in were
Microsoft, Amazon, IBM, WalMart, and Intel and Coke tied for fifth. The top
5 in familiarity were Amazon, Microsoft, AOL, Netscape and eBay. Tying for
the lowest ranking of the 100 brands were Haggle.com, an online auction
site, and Hillspet.com, which offers nutritional advice and products for
dogs and cats. The rest of the finishers on the bottom were: Petopia.com;
Virgin.com; Wingspanbank.com; Sixdegrees.com; Furniture.com; Peapod.com;
Fatbrain.com; and PG.com, the Web site of Procter & Gamble.
"It's not enough to just be well known," said Mike Mulligan, chairman and
chief executive at Mapquest.com in New York, the Web site that ranked 20th
for overall brand power. "It's also important to have a brand that's readily
understandable. "To a large extent," he added, "your Web site is your brand."
[SOURCE: New York Times (C7), AUTHOR: Allison Fass]
(http://www.nytimes.com/library/financial/columns/051000computer-adcol.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), Harry Chauss (HARRY( 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/)

DIGITAL DIVIDE
Survey of 100 Community Technology Centers (NTIA)

CABLE
Dispute Centers On Control(USA)
Digital Future Up For Grabs In Cable Battle (NYT)
Don't Touch That Demographic! (WP)

MERGERS
FCC Struggles With Knotty Legal Issue In the Bell Atlantic-GTE
Merger Deal (WSJ)
Gannett Boosts Bid to $702 Million For U.K.'s
News Communications (WSJ)
Spanish Government, Shareholders Thwart Telefonica's Bid for
KPN (WSJ)
FCC's Role in Merger Reviews (NTIA)

INTELLECTUAL PROPERTY
The Digital Millennium Copyright Act (NTIA)

PHILANTHROPY
Serving Self While Serving Others (NYT)

DIGITAL DIVIDE

SURVEY OF 100 COMMUNITY TECHNOLOGY CENTERS
Issue: Digital Divide
From Press Release: Commerce Secretary William M. Daley announced the award
of a $100,450 contract to the Virginia Polytechnic Institute in Blacksburg,
Va., for a survey of 100 Community Technology Centers (CTCs), a major
component in public/private initiatives aimed at closing the nation's
digital divide. Daley said the survey will focus on the CTCs' information
technology resources, factors impeding the creation of new technology
centers, the integration of CTCs into economically distressed neighborhoods,
methods for increasing access to the CTCs, and ways for improving their
effectiveness. The Contract was awarded by the Commerce Department's
National Telecommunications and Information Administration (NTIA) under its
Technology Opportunities Program (TOP).
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/ctcpr50400.htm)

CABLE

DISPUTE CENTERS ON CONTROL TIME WARNER, DISNEY SPAT A TURNING POINT
Issue: Cable
Following last week's spat between Time Warner and Disney -- which left 3.5
million of Time Warner's cable subscribers with out ABC for a day and a half
-- cable executives may have more difficulty convincing the public and
regulators that they really care about consumers. The chief quarrel between
the companies involved the Disney Channel, which Disney wants to become part
of an expanded basic service tear --like MTV and CNN -- available to nearly
all subscribers. The battle was simultaneously one of the last big fights of
the cable era and the opening battle of the broadband era. While the dispute
may have been similar to previous cable skirmishes, Time Warner and Disney
were perhaps more willing to jump into the ring because of the increased
stakes presented by rise of broadband competition. The lesson from last
week, may be that that bigness does matter -- possibly more than ever -- in
the age of broadband.
[SOURCE: USAToday (B2), AUTHOR: David Lieberman]
(http://www.usatoday.com/usatonline/20000508/2238111s.htm)

DIGITAL FUTURE UP FOR GRABS IN CABLE BATTLE
Issue: Cable/Internet
"This [Disney v. Time Warner] is one of the first major battles in which the
parties are talking about what the rules of the road will be in the digital
future," said Blair Levin, a former Federal Communications Commission
official. "Broadcasting is heavily regulated, but the government has a
hands-off approach to the Internet. We don't know which will apply to
interactive television." Cable operators have been able to avoid paying for
broadcast network TV, but have given these networks a upperhand when they
launch new cable channels, a time when a producer is most vulnerable. The
structure of the new AOL Time Warner includes separate units for producing
and distributing content. Many argue that the trend of modern technology is
towards open models. But as we move towards interactive TV, who will have
the right to run the chat room that accompany's ABC's Monday Night Football
-- Disney or the cable operator [or NOW, for that matter]? Cable operators
argue that interactive television should be treated like new channels and
they should be able to decide what services they offer. Broadcast television
executives say the interactive services are just extensions of their
existing programs and should be carried by cable operators with no
additional payment. "In the old model, it was easy to know what everybody
did," said Saul Shapiro, chief executive of Gist, a company developing
interactive TV services. "The networks ran programs and inserted ads. And no
one messed with that. In the future, there will be a multiplicity of
voices."
[SOURCE: New York Times (C1), AUTHOR: Saul Hansel]
(http://www.nytimes.com/yr/mo/day/news/financial/disney-timewarner.html)
See Also:
RECONSTRUCTING THE GENESIS OF A BLUNDER
Just what was Time Warner (and Disney, for that matter) thinking during this
little exercise? Get a behind the scenes view of the battle royale.
[SOURCE: New York Times (C20), AUTHOR: Jim Rutenberg]
(http://www.nytimes.com/yr/mo/day/news/financial/timewarner-assess.html)

DON'T TOUCH THAT DEMOGRAPHIC!
Issue: Cable/Journalism
If your turned on MSNBC at 8 p.m. last week, you might have found programs
that dealt with child sexual abuse; mountain lions and coyotes that attack;
Mary Kay LeTourneau, the teacher who had sex with a teenage student; and
private eyes who catch cheating spouses. a program focused on sex violence.
A focus on sex and violence dominates "Special Edition," which airs Tuesday
through Thursday on the 8 p.m. spot, and Monday's "Crime Files". The
programming is part of an effort by the NBC-Microsoft efforts to reverse
falling prime-time ratings for all the cable news networks. Erik Sorenson,
MSNBC's vice president, says the programs deal with "real-life stories that
are compelling, fascinating and somewhat sensational--if we're choosing them
right, maybe frequently sensational... To a younger news viewer, that
generally is more appealing than institutional news that is incremental and
slow-moving." While not all viewers may be attracted to MSNBC's "celebrities
and tabloid" approach, Sorenson says MSNBC is doing well with the "more
upscale demographic" coveted by advertisers. "We care only about
25-to-54-year-olds, and we really don't care at all about households," he
says.
[SOURCE: Washington Post (C1), AUTHOR: Howard Kurtz]
(http://washingtonpost.com/wp-dyn/articles/A23857-2000May7.html)

MERGERS

FCC STRUGGLES WITH KNOTTY LEGAL ISSUE IN THE BELL ATLANTIC-GTE MERGER DEAL
Issue: Mergers
The Federal Communications Commission is fearful of setting a precedent with
the Bell Atlantic-GTE merger that will make its ownership and control rules
appear impotent. The issue with the merger is a section of the 1996
Telecommunications Act forbidding the Baby Bells to provide long-distance
voice or data service before opening their local markets to competition.
Congress hoped that the promise of long distance would provide an incentive
for the Baby Bells to loosen their monopoly grip on local markets. Bell
Atlantic has only been granted permission in New York state to provide long
distance. GTE, however, provides long-distance voice, as well as high-speed
data and Internet backbone services through its "Genuity" company. With
Genuity as a leader in the fast-growing data market, and one of the major
reasons behind the merger, Bell Atlantic is loath to sell Genuity outright
to comply with the Telecommunications Act. Instead, it has proposed keeping
only a 10% stake in Genuity, which is allowed by law. But a second part of
the proposal is that once the Bell Atlantic-GTE merged company (called
Verizon) wins long-distance approval in all its markets, its 10% stake in
Genuity would convert to 80%. The FCC isn't thrilled about approving a
proposal that appears to simply "park" Genuity stock for easy pickup later
once Verizon clears long-distance hurdles. Such a plan appears to enable
Bell Atlantic to evade regulatory controls meant to provide competition in
the market. Columbia Law School Prof. John C. Coffee, called the Genuity
plan a "sham transaction" meant to circumvent the FCC's authority, according
to a transcript of the session. The deal "is not a loophole, it's a
triumphal arch, and it's going to invite many more." As it stands now, the
FCC is ultimately expected to approve the merger, but requiring divestiture
of Genuity isn't out of the question.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Mark Wigfield]
(http://interactive.wsj.com/articles/SB957736286182528759.htm)

GANNETT BOOSTS BID TO $702 MILLION FOR U.K.'S NEWS COMMUNICATIONS
Issue: Mergers
Gannett said it made a formal bid to buy British regional-newspaper
group News Communications & Media PLC for $702 million, representing its
latest step into the United Kingdom. The offer is higher than the one
Gannett made on Dec. 10, which News Communications rejected. Two British
companies, Johnston Press PLC and Trinity Mirror PLC, also have made offers
for Newscom, but a Gannett spokeswoman said the company doesn't anticipate
any hurdles for the deal. The acquisition would follow Gannett's $1.5
billion purchase in June of Newsquest PLC, another British
regional-newspaper publisher. Gannett's bid for Newscom followed the recent
approval of the U.K.'s Competition Commission allowing Gannett and the other
suitors to make formal offers. In addition to its recent U.K. newspaper
acquisitions, Gannett, through Newsquest, agreed in January to take a 10%
equity stake in the online-auction business of British Internet service
provider Freeserve PLC.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Erin White and Charles
Goldsmith]
(http://interactive.wsj.com/articles/SB957554477587073054.htm)

SPANISH GOVERNMENT, SHAREHOLDERS THWART TELEFONICA'S BID FOR KPN
Issue: Mergers
The Spanish government, backed by two Spanish banks, thwarted the planned
$59.23 billion merger of Telefonica SA and KPN NV of the Netherlands. The
merger would have created Europe's fourth-largest telephone company. This is
not the first time a government has stepped in to stop a merger. Last year's
attempt by Deutsche Telekom AG to acquire Telecom Italia SpA fell apart
after the Italian government appeared to favor a rival bid from Olivetti
SpA. KPN Chairman Paul Smits claims that the deal fell apart because of
friction between Telefonica's chairman, Juan Villalonga, and the
government's Prime Minister Jose Maria Aznar. And while Mr. Smits doesn't
exclude the possibility of KPN and Telefonica reviving their merger talks
once Telefonica had sorted out its internal problems, he does warn that KPN,
which is engaged in talks with other major telecom players, including
Japan's NTT DoCoMo and BellSouth of the United States, won't wait for
Telefonica. "This was a beautiful deal yesterday, it will be a beautiful
deal tomorrow. But the world moves on. We are engaged in talks with other
strong partners and do not want to get involved in this kind of a mess."
[SOURCE: Wall Street Journal Interactive, AUTHOR: Carlta Vitzthum and James
Dorsey]
(http://interactive.wsj.com/articles/SB957543884109875423.htm)

FCC'S ROLE IN MERGER REVIEWS
Issue: Mergers
From Press Release: Commerce Secretary William M. Daley, in a May 4 letter
to congressional leaders, expressed concern about pending legislation that
would restrict the Federal Communications Commission's authority to review
mergers in the economically booming telecommunications industry. Numerous
bills pending in Congress seek to limit the FCC's role in approving mergers
either by limiting the amount of time the Commission has to approve a
merger, or by limiting the Commission's authority to impose conditions on
merger approvals. Consolidation in the telecommunications sector affect a
number of important public interest issues that are of serious concern to
the American public, Daley said. Such proposed restrictions as time limits
for merger reviews, would impinge on the FCC's ability to conduct a thorough
public interest analysis of complex issues, the Secretary said. [The letter
is available at the URL below]
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/merger50400.htm)

INTELLECTUAL PROPERTY

THE DIGITAL MILLENNIUM COPYRIGHT ACT
Issue: Intellectual Property
NTIA and the U.S. Copyright Office released the Joint Study of Section
1201(g) of The Digital Millennium Copyright Act. The DMCA seeks to advance
two goals: the protection of intellectual property rights in today's digital
environment and the promotion of continued growth and development of
electronic commerce. Section 1201(g) of the law implements the second
imperative by exempting from the new prohibition certain good faith
activities of circumvention when: (a) the person circumventing the
protection system lawfully obtained the encrypted copy of the work; (b)
circumvention is necessary to conduct the "encryption research;"(8) (c) the
person circumventing the protection system made a good faith effort to
obtain authorization from the copyright owner of a work protected by a
technological measure prior to the circumvention; and (d) such circumvention
does not constitute copyright infringement or a violation of any otherwise
applicable law.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/reports/dmca/)

PHILANTHROPY

SERVING SELF WHILE SERVING OTHERS
Issue: Philanthropy
The Internal Revenue Service once tried to revoke the National Heritage
Foundation's tax-exempt status. Last year, Congress and the I.R.S. put a
stop to a charitable giving strategy promoted aggressively by Heritage's
J.T. Houk that critics said benefited donors more than recipients. Mr. Houk
rejects the idea that anyone ought to perform a charitable service for free
[what exactly makes it charitable then?] saying, "Volunteers give you dregs,
not dynamite. You get what you pay for." Donors who entrust money instead to
his Falls Church, Va., charity set up individual accounts that mimic
foundations at a fraction of the cost. In turn, they are eligible for
immediate tax deductions for their gifts and are encouraged to use the money
sitting in their accounts to pay salaries and expenses for themselves and
their families. Donors need not worry about the low pay charities offer,
says the pitch on the foundation's Web site, "We would strive to bring your
salary up to private industry standards." "It's like paying the Girl Scouts
to sell cookies," said Jack Shakely, president of the California Community
Foundation. "It's not illegal, but it just doesn't pass the 60-second smell
test." [See more at the URL below]
[SOURCE: New York Times (A16), AUTHOR: Reed Abelson]
(http://www.nytimes.com/yr/mo/day/news/financial/houk-controversy.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), Harry Chauss (HARRY( 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/)

DIGITAL DIVIDE
Rural School Is Now Wired to the World (NYT)
Diversity Must Be A Priority, HP's Fiorina Tells Execs(SJM)

INTERNET
FTC Issues Guidelines For E-Commerce Ads (WSJ)
House Subcommittee Says Congress Must Act to Prevent Access Charges
(WSJ)
Web Site IServed Scoops Up U.S. Version of Military Paper (WSJ)
Scan the Headlines? No, Just the Bar Codes (NYT)

BROADCASTING & CABLE
FCC Approves Viacom-CBS Deal (WP)
Viewers Casualties in TV War (WP)
Time Warner Faces a Fine by F.C.C. Unit (NYT)

BROADBAND
Night of the Living D.S.L.: Broadband Horror Stories (NYT)

WIRLESS
Aether, Visa Set Deal On Wireless Billing (WP)

DIGITAL DIVIDE

RURAL SCHOOL IS NOW WIRED TO THE WORLD
Issue: Digital Divide
In an extremely rural central Wyoming Elementary School, Diamond Forbes is
the only student. Yet, with her teacher and an iMac computer with Internet
access at her side, Diamond is anything but disadvantaged. Now that Wyoming
has become the first state to provide every one of its public schools with
Internet access the disadvantages of isolation have been neutralized. This
is a significant accomplishment considering that of Wyoming's 234 elementary
schools, 19 have less than 10 students. Wyoming, with its small wired
schools, has provided an enviable learning environment with an incredibly
low student-to-teacher ratio matched by a statewide average of eight
students for every computer. Gov. Jim Geringer, who passed the legislation
to wire every public school says, "Every child in Wyoming now has the
opportunity to develop to his or her own potential."
[SOURCE: New York Times (A22), AUTHOR: Michael Janofsky]
(http://www.nytimes.com/library/tech/00/05/biztech/articles/04wyoming.html)

DIVERSITY MUST BE A PRIORITY, HP'S FIORINA TELLS EXECS
Issue: Digital Divide
Jessie Jackson's Rainbow/Push Coalition is hosting a three day digital
divide conference in San Jose to address the issue of minority inclusion
into the Silicon Valley's high-tech economy. While speaking on Wednesday's
panel, Hewlett-Packard's Carly Fiorina said, "The fact is that diversity is
not a hiring practice or a hiring priority in many Silicon Valley companies
. . .As a result, this industry has far too much conformity." The
Rainbow/Push conference is an attempt to bring high-tech minority executives
and entrepreneurs together and introduce them to the business leaders of the
Silicon Valley. Additional contributors to the Wednesday panel included John
Chambers of Cisco Systems, Craig Barrett of Intel Corp. and Robert Knowling
Jr. of Covered Communications. However, it was Fiorina that led the robust
discussion by offering a three-step plan, "We need to stop the rhetoric,
recognize the value in diversity and change through `e-inclusion." Jessie
Jackson attended the panel discussion. He was encouraged by the ability of
the contributors to address the diversity problems of Silicon Valley. But he
said that its time to move on to addressing the solutions rather than the
problems.
[SOURCE: San Jose Mercury News, AUTHOR: Joshua L. Kwan]
(http://www.mercurycenter.com/svtech/news/top/docs/divide050400.htm)

INTERNET

FTC ISSUES GUIDELINES FOR E-COMMERCE ADS
Issue: E-Commerce
The Federal Trade Commission issued official guidelines for Internet
advertising that spell out how the agency's consumer-protection rules apply
to online ads and sales practices. "This guidance represents the cooperative
efforts of government, communications experts in industry, and consumer
groups to achieve fair, informative online advertising," said Jodie
Bernstein, FTC director of consumer protection. The guidelines emphasize the
importance of posting clear and conspicuous disclosures to prevent
misleading ads.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB957402460160455109.htm)

HOUSE SUBCOMMITTEE SAYS CONGRESS MUST ACT TO PREVENT ACCESS CHARGES
Issue: Internet
Rep. Fred Upton, (R-Mich.) has introduced a bill that would bar the Federal
Communications Commission (FCC) from having Internet Service Providers pay
[long-distance] access charges for sending digital data. Voice data used in
IP telephony is not covered by the bill. "While it is true that Internet
service providers are currently exempt from having to pay [long-distance]
access charges, the FCC [Federal Communications Commission] could always
change its mind," said Rep. Tom Bliley, (R.-Va.), chairman of the full House
Commerce Committee.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Mark Wigfield]
(http://interactive.wsj.com/articles/SB95738438471116264.htm)

WEB SITE ISERVED SCOOPS UP US VERSION OF MILITARY PAPER
Issue: Internet
In an example that anything is fair game for the Internet, the Internet
company IServed.com acquired the U.S. edition of Stars & Stripes veterans'
newspaper and will begin posting its stories on a new Web site. The purchase
does not include not include the government-owned European and Pacific
editions of the Stars & Stripes, which are circulated at military bases.
Howard Haugerud, the owner of the U.S. edition, said he never made money in
the nine years he owned the paper. "I never tried to make money. The way we
ran it, it was never going to make money." The newspaper has an editorial
staff of only four people. The name "Stars & Stripes" holds a special place
in the heart of any military brat - this one included.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Associated Press]
(http://interactive.wsj.com/articles/SB957358921654979445.htm)

SCAN THE HEADLINES? NO, JUST THE BAR CODES
Issue: Internet
Some readers of the Post and Courier, the daily newspaper in Charleston,
S.C., will soon be able to access news on the Web, without even typing in a
URL address. A select group of testers in Charleston will receive free
handheld scanners so they can activate small bar codes on the pages of the
Post and Courier and jump straight to the corresponding Web sites. "You just
beep on this thing and you're there," said Alan H. Seim, director of
Internet operations at The Post and Courier. The experiment in Charleston is
part of an effort to create useable links between real-world items and the
Internet. Wired magazine and Popular Mechanics will soon be sporting
imperceptible digital watermarks in printed text and photograph that, when
held up to a Webcam, tell the computer to display related Web pages. "We
think it will change the dynamic of how we edit the magazine and
relationships with our readers," said Jay McGill, publisher of Popular
Mechanics.
[SOURCE: New York Times (E1), AUTHOR: Lisa Guernsey]
(http://www.nytimes.com/library/tech/00/05/circuits/articles/04bar.html)

BROADCASTING & CABLE

FCC APPROVES VIACOM-CBS DEAL
Issue: Merger
The Federal Communications Commission, approved the merger between Viacom
and CBS yesterday. While this surprised very few people, there was a certain
amount of curiosity as to whether the colossal new company would be forced
to sell off one of its two television networks-CBS or the struggling UPN. In
recent weeks, however, the FCC has hinted that the new company can keep
both. The new company will be the largest diversified media company around,
with assets including the two broadcast networks, a movie studio, cable
networks, and the ubiquitous Blockbuster video chain.
[SOURCE: Washington Post (E1), AUTHOR: Paul Farhi]
(http://www.washingtonpost.com/wp-dyn/articles/A64164-2000May3.html)

TIME WARNER FACES A FINE BY F.C.C. UNIT
Issue: Cable
The Federal Communications Commission's Cable Bureau is pretty annoyed at
Time Warner for yanking ABC. The FCC said yesterday that Time Warner had
violated a federal regulation by pulling ABC off the air in the midst of a
ratings sweep month. There has been no decision made about what action to
take against the errant cable system but, according to an FCC spokesman,
Time Warner will likely face a fine. F.C.C. chairman, William E. Kennard,
said: "Time Warner Cable committed a clear violation of F.C.C. rules.
Unfortunately millions of consumers paid the price." He added, "No company
should use consumers in a private contract dispute."
[SOURCE: New York Times, AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/fcc-timewarner.html)

VIEWERS CASUALTIES IN TV WAR
Issue: Cable
Time Warner's decision to drop ABC's signal this week hasn't made them any
friends in the 3 million consumers who were without "Who Wants to Be a
Millionaire?" for that fateful 36 hours. The Federal Communications
Commission wasn't amused either, they ruled for Disney in the dispute that
led to the blackout. Disney is busily making friends with consumers by
offering $198 rebates towards the purchase of satellite television systems.
And the battle will likely intensify as Time Warner's proposed merger with
AOL gets closer scrutiny in the coming weeks. Those on Capitol Hill are
really worked up by the whole thing and there have already been some pretty
decent quotes to come out of this. "This is a picture-perfect image of two
greedy corporate titans fighting it out, with the only real victim being the
consumer," said Mark Buse, staff director for the Senate Commerce Committee,
which will have a hearing in July to consider rules on negotiations between
cable and broadcasting interests. "As long as you have this consolidation
and corporate giants with more and power, you're going to have these
battles."
[SOURCE: Washington Post (E1), AUTHOR: Peter S. Goodman and Paul Farhi]
(http://www.washingtonpost.com/wp-dyn/articles/A64191-2000May3.html)

BROADBAND

NIGHT OF THE LIVING D.S.L.: BROADBAND HORROR STORIES
Issue: Broadband
As the demand for D.S.L., or digital subscriber line -- a form of high-speed
Internet connection - grows, so does the level of frustration felt by many
dissatisfied DSL customers. By the end of this year there will be 900,000
D.S.L. subscribers in the United States and more than double that number by
the end of 2001, said Fritz McCormick, an analyst at the Yankee Group. It
can be a struggle for many customers to just get DSL installed, for others,
problems may begin after it is. Many subscribers complain of service outages
and poor customer care. "My take on the whole situation is probably that the
D.S.L. industry is growing too fast," said Bill Hipps, a D.S.L customer from
Salt Lake City, "and that the technology hasn't been tested enough with all
the volume and variables." Meanwhile, companies are struggling to provide
better service and keep up with exploding demand. "The vast majority of our
customers are just thrilled with it," said Mike McLeland, vice president of
operations at SBC Advanced Solutions, which provides D.S.L. service in 13
states.
[SOURCE: New York Times (E1), AUTHOR: Katie Hafner]
(http://www.nytimes.com/library/tech/00/05 /circuits/articles/04dsll.html)

WIRELESS

AETHER, VISA SET DEAL ON WIRELESS BILLING
Issue: WIRELESS
The ongoing effort to allow consumers to shop anywhere, anytime took a great
leap forward yesterday, as Aether Systems Inc. and Visa U.S.A. announced a
joint venture aimed at allowing individuals to make purchases or pay bills
using any hand-held wireless device. The venture will produce products
including an "electronic wallet" that will allow mobile Internet users to
store credit-card numbers and any other information used to make purchases
or pay bills from hand-held devices. David Oros, Aether chairman and chief
executive, said "It will do everything your wallet does, everything your PC
does and everything your bank teller does."
[SOURCE: Washington Post (E5), AUTHOR: Rob Garretson]
(http://www.washingtonpost.com/wp-dyn/articles/A995-2000May3.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), Harry Chauss (HARRY( 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/)

CABLE & BROADCASTING
The Blackout Battle (NYT)
Hollywood Actors Strike Advertisers For Better Internet and Cable TV
Pay (WSJ)
Gannett Invests In Zapmedia Interactive TV Unit Cited As Key To Deal
(USA)

INTERNET
Congressional Investigators Scrutinize Internet Oversight Group
(NYT)
Internet Taxation (House)
Net Connections Comfort, Counsel Gays Who Are Isolated Or Don't Feel
Free To Come Out (USA)
The Role of the Arts in Bridging the Digital Divide (Benton)

INTELLECTUAL PROPERTY
Students Have Few Qualms About Online Music Piracy (NYT)

TELEPHONY
Bell Atlantic Is Set to Offer Prepaid Service (NYT)
Telefonica Is in Talks for a Deal Valuing KPN at Over $60 Billion
(WSJ)
Novakom Will Offer Telecom Services To Hungary Via Electricity
Network (WSJ)

WIRELESS
Teligent Expands Reach of Wireless (WP)
Hong Kong May Miss Windfall If It Gives Away 3G Licenses (WSJ)

CABLE & BROADCASTING

THE BLACKOUT BATTLE
Issue: Cable
In New York, and several other cities around the country, cable subscribers
woke up yesterday morning to find their ABC channel blank.
The blackout is a result of failed negotiations between Time Warner and
Disney, ABC's parent company. The companies could not agree on the amount
that Time Warner is to pay Disney for the right to carry its programming.
Yesterday, Time Warner and took ABC off the screens during a critical
"sweeps" period when the number of viewers is used to set advertising rates.
According to the authors, this dispute between media giants "gives us an
alarming glimpse of the possible shape of the future in telecommunications."
They point out that the strength of the already powerful Time Warner, will
only be bolstered by its pending merger with AOL. The merged company will
own not only the pipeline that brings video programming into millions of
homes, but also many of the most popular programs and Internet services
provided by the cable service. While until now, the Federal Communications
Commission has avoided the regulation of the Internet on the grounds that it
was too early in the process to develop appropriate policies, the current
Disney-Time Warner tumult should compel the commission to take another look.
See Also:
[SOURCE: New York Times (A30), AUTHOR: New York Times Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/02tue1.html)
BLACKOUT OF ABC ON CABLE AFFECTS MILLIONS OF HOMES
[SOURCE: New York Times (A1), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/disney-timewarner.html\)

HOLLYWOOD ACTORS STRIKE ADVERTISERS FOR BETTER INTERNET AND CABLE TV PAY
Issue: Advertising/Cable & TV
In a scene reminiscent of Norma Rae or Mattawan, members of the Screen
Actors Guild and the American Federation of Television & Radio Artists
(together, some 135,000 strong), marched down Wilshire Boulevard in Los
Angeles yesterday chanting "pay-per-play." The strikers are demanding better
compensation for their work on cable television commercials. Union members
are asking management for a so-called "pay-per-play" system of residuals,
rather than the current one-time fee system.
[SOURCE: Wall Street Journal (B16), AUTHOR: John Lippman]
(http://interactive.wsj.com/articles/SB957216786696984533.htm)

GANNETT INVESTS IN ZAPMEDIA INTERACTIVE TV UNIT CITED AS KEY TO DEAL
Issue: Interactive TV
USA TODAY parent company, will announce today a plan to become a player in
interactive television by making a $270 million investment in ZapMedia.com.
Atlanta-based company is designing the ZapStation, a unit blends Internet
access with a hard drive, DVD/CD player and MP3 player. This device will
allow viewers TV viewers to access and store videos, music, e-mail and other
Web content with a remote control and wireless keyboard. ZapMedia will
feature USATODAY.com as its national news source. "USA TODAY gets a chance
to move into the living room and the family room in the post-PC era," says
Publisher Tom Curley. "It gives us an opportunity to go beyond the
advertising revenue stream."
[SOURCE: USAToday (3B), AUTHOR: David Lieberman]
(http://www.usatoday.com/usatonline/20000502/2217728s.htm)

LOW POWER FM FILING WINDOW
Issue: Radio
FCC will open a Low Power FM Filing Window May 30 through June 5, 2000 for
Alaska, California, District of Columbia, Georgia, Indiana, Louisiana,
Maine, Mariana Islands, Maryland, Oklahoma, Rhode Island and Utah.
[SOURCE: FCC]
(http://www.fcc.gov/mmb/prd/lpfm/lpfmwin.html)

INTERNET

CONGRESSIONAL INVESTIGATORS SCRUTINIZE INTERNET OVERSIGHT GROUP
Issue: Internet
The General Accounting Office, has been asking questions about the Internet
Corporation for Assigned Names and Numbers (ICANN). The scrutiny is nothing
new. Since it was picked to oversee the domain name system and to introduce
competition into the business of registering domain names, ICANN has been a
lightening rod for controversy. The current inquiry is attempting to
determine whether the Clinton administration had the authority to give
administration of the Internet over to a private entity.
[SOURCE: New York Times (Cyber Times), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/05/cyber/capital/02capital.html)

INTERNET TAXATION
Issue: Internet/Legislation
Wednesday, May 3, 2000 10:00 am in 2123 Rayburn House Office Building.
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
focusing on H.R. 4202, the Internet Services Promotion Act of 2000 and H.R.
1291, the Internet Access Charge Prohibition Act of 1999. Witnesses will be
by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

NET CONNECTIONS COMFORT, COUNSEL GAYS WHO ARE ISOLATED OR DON'T FEEL FREE TO
COME OUT
Issue:Internet
The Internet is becoming an important resource to gays who might find it
difficult to make connections with other homosexuals in their local
communities. "It would be an extremely lonely place as far as gay life and
gay community if it weren't for the Internet," said Larry Lamond, who lives
in the tiny town of Milo, Maine. For Lamond, the Internet provides support
in his battle with the ADIS virus, allowing him to keep in touch with others
afflicted with the disease. The Net is a vital source of information,
especially for those from smaller towns and rural areas who don't have
access to support groups like those in larger communities.
[SOURCE: USAToday (3D), AUTHOR: Elizabeth Weise]
(http://www.usatoday.com/usatonline/20000502/2217677s.htm)

THE ROLE OF THE ARTS IN BRIDGING THE DIGITAL DIVIDE
Issue: Digital Divide/Arts
In the ongoing and increasing conversations regarding the digital divide,
there has been little discussion of how the arts are playing an important
role in these efforts. To better understand the ways in which the arts
community is narrowing the technology gap, the Benton Foundation recently
hosted an online conversation involving representatives of Open Studio: The
Arts Online, a joint project of the Benton Foundation and the National
Endowment for the Arts to provide technology training and access to the arts
community. Now in its third year, Open Studio's local training sites have
trained more than 1,000 artists and arts organizations across the country to
use the Internet and World Wide Web for communication, publication, and
creative expression.
[SOURCE: Benton]
(http://www.benton.org/News/Extra/art042800.html)

INTELLECTUAL PROPERTY

STUDENTS HAVE FEW QUALMS ABOUT ONLINE MUSIC PIRACY
Issue:
The recording industry's best efforts aside, college students continue to
trade so many MP3 files over the Internet, that university networks are
struggling to keep up with the traffic. Students today (with their
rock-and-roll and their long hair. . .) tend to have one of two arguments
in favor of trading MP3's: purchasing music on what they see as overpriced
commercially produced CDs is an outdated practice, or that trading
copyrighted music is not a serious enough crime to be avoided. Don Tapscott,
author of the book "Growing Up Digital," says that students see music in the
same terms that they see software, where free versions are the rule. "They
want to try before they buy, because the demo is deeply ingrained in their
culture," he said. Whatever the genesis of the practice, it is fast becoming
the norm. "Whenever I'm listening to music, I'm using my MP3 player," said
Aaron Silverman, a Yale sophomore. "Even at parties, people hook up
computers to big speakers."
[SOURCE: New York Times (Cyber Times), AUTHOR: Paul Heltzel]
(http://www.nytimes.com/library/tech/00/05/cyber/articles/02music.html)

TELEPHONY

BELL ATLANTIC IS SET TO OFFER PREPAID SERVICE
Issue: Telephony
Bell Atlantic will introduce new long distance calling plan today that may
be less expensive than popular plans offered by AT&T, MCI WorldCom and
Sprint, say executives close to Bell Atlantic. The plan, called SmartTouch,
will offer interstate long-distance calls for 8 cents a minute at any time
and without monthly fees or minimum charges. The twist is that SmartTouch
customers are to buy long-distance minutes in advance under a system
somewhat akin to prepaid calling cards. In December, Bell Atlantic became
the first regional Bell company to win permission from federal regulators to
offer long-distance service in part of its traditional service region. So
far, Bell Atlantic has not won permission to offer long-distance service in
any of the other states where it is the dominant local phone company except
for New York, but it is free to sell long-distance service outside of the
Eastern Seaboard. Bell Atlantic will initially offer SmartTouch in Arkansas,
Iowa, Kansas, Michigan, Nevada, New York, Oregon, South Dakota, Texas and
Wisconsin.
[SOURCE: New York Times (B1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/yr/mo/day/news/financial/bell-atlantic.html)

TELEFONICA IS IN TALKS FOR A DEAL VALUING KPN AT OVER $60 BILLION
Issue: Mergers
Telefonica, a Spanish phone company and also the largest player in Latin
America, is in discussions to merge with the Dutch carrier Royal KPN, a move
that would propel the combined company to the No.3 position in Europe in
terms of subscribers. The deal would be a merger, rather than an acquisition
by Telefonica, even though the Spanish carrier, with a market capitalization
of $73 billion, is far larger than KPN, with a market capitalization of $49
billion. A merger would combine Telefonica's Terra Networks (their Internet
business) with KPN's cellular phone business, which could use the currency
of the newly public company to build a sizable rival to Vodafone AirTouch
PLC. The combined company would also have a better chance of buying British
wireless provider Orange PLC. Royal KPN is building a pan-European data
network with U.S. partner Qwest Communications.
The companies have been in intense discussions for several weeks and a deal
could be announced within days.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Gautam Naik, Anita
Raghavan, and Nikhil Deogun]
(http://interactive.wsj.com/articles/SB957222061120310808.htm)

NOVAKOM WILL OFFER TELECOM SERVICES TO HUNGARY VIA ELECTRICITY NETWORK
Issue: Telephony
Novakom, a subsidiary of the German utility RWE, intends to offer
traditionally telecommunication-based services, such as the Internet, via
the Hungarian electricity network through a technology known as Powerline.
The use of the electricity network for telecommunications in Hungary is
generating particular interest because less than 40% of a population of
around 10 million currently have a fixed-network connection. If Novakom is
successful in making electricity lines function as the last mile to
consumers' homes, then thousands of customers could be connected without
large-scale investment. If Powerline proves to be a viable proposition, then
Novakom and Vodafone PLC, the world's largest mobile-telecoms group, will
launch a joint mobile/fixed-network package by the end of September.
Telecoms carriers had previously considered a mobile/fixed-network package
in Hungary as financially unsound.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Handelsblatt]
(http://interactive.wsj.com/articles/SB957226747262136583.htm)

WIRELESS

TELIGENT EXPANDS REACH OF WIRELESS
Issue:
A new widget developed by Teligent could change the face of the fixed
wireless business. The gizmo, called an "active antenna repeater," allows a
30 percent increase in the number of buildings a signal can reach within the
range of a base station. This could allow small or medium sized companies
(Telignet's primary market) a chance to compete with leviathan companies
such as AT&T or MCI WorldCom (is that what they're calling themselves this
week?). Without the device, in order to reach a buildings blocked from the
wireless signal, a company must either run fiber-optic cable to the
building, or build a base station for between $250,000 and $300,000. The new
gadget costs between $5,000 and $10,000.
[SOURCE: Washington Post (E1), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A50279-2000May1.html)

HONG KONG MAY MISS WINDFALL IF IT GIVES AWAY 3G LICENSES
Issue: Wireless
After the U.K. raised more than $35 billion last week auctioning licenses to
companies that seek to sell a "third generation" of mobile phones, other
countries are rethinking their strategy of how best to award their 3G
licenses. Hong Kong, which aims eventually to grant four to six "3G"
licenses, is deciding whether to auction the licenses or go through a
process of weighing business plans known as a beauty contest. Under the
beauty contest, companies would be assessed on their plan to provide the
best networks and cheapest service for consumers. "We want people that are
very, very good, not just very, very rich," says Anthony Wong, head of Hong
Kong's Office of the Telecommunications Authority. But the beauty contest
has its flaws, "Governments will tend to favor the status quo companies --
those they've cut deals with in the past -- instead of the innovative
start-ups," says Solveig Singleton, an expert on telecom law at the Cato
Institute. Also, if Hong Kong decides to auction the licenses, it earns
cash that could ease the city's worrisome budget deficit. Some telecom
experts argue the government can find hybrid methods to skirt an auction,
and still use 3G licenses to raise revenue.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Peter Wonacott]
(http://interactive.wsj.com/articles/SB957202554935905283.htm)

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

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), Harry Chauss (HARRY( 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/)