October 2000

POLITICAL DISCOURSE/TELEVISION
Instant Media Analysis Often Proves at Odds With
Public Opinion (NYT)
Agenda for Public hearing on Public Interest Obligations of
TV Broadcasters (FCC)

DIGITAL DIVIDE
Historically Black Colleges and Universities: An Assessment of
Networking and Connectivity (NTIA)
Domain Names Hoarded, Suit Says (WP)

TELEPHONY
Senate Backs Phone-Tax Repeal (WP)
Additional Spectrum for Wireless Services (FCC)

COMPETITION/MERGERS
FCC Says Local Phone Providers Can't Make Exclusive Building Deals (WSJ)
NOI on Cable Internet Access (FCC)
Study: Government Agencies Competing Against Private E-Commerce (SJM)
Vivendi-Seagram Antitrust Investigation Is Expected to
Take Four More Months (WSJ)

PRIVACY
Recent Developments in Privacy Protection for Consumers (EPIC)

PHILANTHROPY
Internet Moguls Help to Preserve Ore. Prairie (WP)

POLITICAL DISCOURSE/TELEVISION

INSTANT MEDIA ANALYSIS OFTEN PROVES AT ODDS WITH PUBLIC OPINION
Issue: Political Discourse
After watching a debate on TV, a viewer can stick around and watch
conventional wisdom solidify before their eyes. Instant polls and on-air
focus groups lead right into instant analyses by correspondents. "We were
talking about this this morning," said Hotline Editor Chuck Todd. "We're
kind of curious what the coverage would have been like if you could have
locked every reporter in a soundproof chamber, and seen what they said if
they hadn't heard the immediate polls and immediate spin on TV." Those who
study viewer and voter attitudes say the question of whether such
conclusions are shared widely by people outside the insular circles of
media and politics grows ever more doubtful. "There is increasing evidence
the American public has an ability to ignore what the pundits say," said
Andrew Kohut, director of the Pew Research Center for the People and the
Press. As an example, Mr. Kohut pointed to the disparity last week between
the news media and the public in their reactions to the Boston debate. "At
least for a while, the pundits were saying Gore won," Mr. Kohut said. "But
the subsequent polling showed that he lost support, because when people
focused on the candidates, they personally liked Gore less." Kathleen Hall
Jamieson, dean of the Annenberg School for Communication at the University
of Pennsylvania, said she advised viewers to turn off their televisions the
moment the debate was over because everything they heard in the post-debate
chatter was meaningless to efforts to form an opinion. "It's dangerous,"
said Ms. Jamieson, who often appears on network talking-head programs as an
expert on the news media. "And the reason it's dangerous is that it
displaces information that's useful with information that's useless."
[SOURCE: New York Times (A20), AUTHOR: Peter Marks]
(http://www.nytimes.com/2000/10/13/politics/13MEDI.html)
(requires registration)
See Also:
FEWER WATCHED LAST DEBATE THAN MOST PREVIOUS ONES
The audience for the second presidential debate of the year dropped sharply
from the first one. The debate was viewed by 37.6 million people watching
commercial broadcast networks and ~2.6 million watching PBS. That audience
is the lowest of all the presidential debates save the 2nd debate between
President Clinton and former-Sen Bob Dole in 1996. The October 3, 2000
debate was watched by 46.6 million on commercial stations and 3.7 million
on PBS.
[SOURCE: New York Times (A21), AUTHOR: Bill Carter]
(http://www.nytimes.com/2000/10/13/politics/13RATI.html)
(requires registration)

AGENDA FOR PUBLIC HEARING ON PUBLIC INTEREST OBLIGATIONS OF TV BROADCASTERS
Issue: Television
As announced on October 3, 2000, the Federal Communications Commission will
hold an en banc hearing on Monday, October 16, 2000, examining the public
interest obligations of television broadcasters. The hearing will commence
at 9:00 a.m. at the Commission's headquarters, 445 12th Street, S.W.,
Washington, D.C. The Commission hearing will consist of three panels: (1)
serving children in a digital television world, (2) protecting children
from the effects of sexually explicit or violent programming, and (3) using
digital television to better serve local communities. A preliminary agenda,
including expected panelists, is attached. FCC Commissioners will moderate
and participate in the hearing.
The hearing is open to the public, and seating will be available on a first
come, first served basis. At the end of each panel, we will provide the
audience with an opportunity for a short question-and-answer period. All
interested persons are invited to attend. Internet users may listen to the
real-time audio feed of the hearing via the FCC's Internet Audio Broadcast
Home Page. Step-by-step instructions on how to listen to the audio
broadcast, as well as information regarding the equipment and software
needed, are available on the FCC's Current Audio/Video Events Home Page.
The URL address for this home page is http://www.fcc.gov/realaudio/.
Mass Media Bureau contacts: Susanna Zwerling (202) 418-2600; Kim Matthews
(202) 418-2120; Julie Barrie (202) 418-2120.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/Public_Notices/pnmm0073.html)

DIGITAL DIVIDE/INTERNET

HISTORICALLY BLACK COLLEGES AND UNIVERSITIES: AN ASSESSMENT OF NETWORKING
AND CONNECTIVITY
Issue: Digital Divide
From Press Release: A majority of the nation's Historically Black Colleges
and Universities (HBCUs) have networks that provide connectivity to the
Internet and the World Wide Web, but most students do not have ready access
to the campus networks, according to report released by Department of
Commerce. The study was conducted by the National Association for Equal
Opportunity in Higher Education under a contract provided by the Technology
Opportunities Program (TOP) of the Commerce Department's National
Telecommunications and Administration (NTIA).
The study, Historically Black Colleges and Universities: An Assessment of
Networking and Connectivity, assessed the computing resources, networking
and connectivity of 80 of the 118 Historically Black Colleges and
Universities in the United States. It represents the first comprehensive
assessment of the technology needs of these post secondary institutions
that were founded prior to the 1964 Civil Rights Act with the primary
objective of educating African Americans. On the lack of student
accessibility to computer networks and resources, the study said computer
networks in a majority of the colleges are concentrated in administrative
buildings rather than in classrooms and student dormitories. In addition,
less than 25 percent of the students bring their own computers to school,
compared to nearly 50 percent of non-HBCU students who own computers.
Access to the campus networks and computer ownership among students are key
to insuring networking and connectivity, the study said.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/2000/nafeo101200.htm)
(http://www.ntia.doc.gov/otiahome/top/research/nafeo/nafeo_report.pdf)

DOMAIN NAMES HOARDED, SUIT SAYS
Issue: Internet
An Alabama businessman has filed a class-action lawsuit against Network
Solutions, alleging that the former domain name monopoly unlawfully
restrained trade when it refused to grant him 28 expired names. This
summer, Network Solutions stirred controversy when it warned customers with
delinquent payments that it would auction their domain names to recoup
losses. Critics argued that the expired names should be returned to the
public pool instead. "They have no right to hoard names that should have
been returned to the public," said Alabama lawyer Scott Powell, who filed
the suit. "It's not theirs to auction."
[SOURCE: Washington Post (E05), AUTHOR: Dina ElBoghdady]
(http://washingtonpost.com/wp-dyn/articles/A64669-2000Oct12.html)

TELEPHONY

SENATE BACKS PHONE-TAX REPEAL
Issue: Telephony
The Senate has voted to repeal a century old tax that was imposed to help
finance the Spanish-American War [signaling an end to century-old
conflict]. In eliminating the tax, Congress will lower phone bills by
forgoing over $55 billion in revenue over the next decade. Phone carriers
said they would immediately cease collecting the 3 percent federal excise
tax that now appears as a line item on all telephone bills. In 1898, when
Congress imposed the excise tax to raise funds for the war against Spain in
Cuba and the Philippines, only 1,376 U.S. households had a phone. Thus,
Congress was effectively taxing a luxury, tapping the wealthiest Americans.
[SOURCE: Washington Post (E03), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A64659-2000Oct12.html)

ADDITIONAL SPECTRUM FOR WIRELESS SERVICES
Issue: Wireless
From Press Release: The Federal Communications Commission has allocated
for commercial wireless services 50 megahertz (MHz) of spectrum transferred
from Government to non-Government use pursuant to provisions of the Omnibus
Budget Reconciliation Act of 1993 and the Balanced Budget Act of 1997. The
spectrum is located in the 3650-3700 MHz band and can be used for both
fixed and mobile commercial wireless services. The FCC also proposed
licensing and service rules for this spectrum and seeks comment on the
possibility of being able to pair this 50 MHz of spectrum with the 50 MHz
of spectrum available in the 4940-4990 MHz band. These actions will benefit
the public by permitting and encouraging the introduction of new services,
particularly in rural areas.
Contacts: Rodney Conway (Office of Engineering and Technology) at (202)
418-2904, e-mail: rconway( at )fcc.gov or Eli Johnson (Wireless Bureau) at (202)
418-1310, e-mail: ejohnson( at )fcc.gov. ET Docket No. 98-237 WT Docket No. 00-32
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Engineering_Technology/News_Releases/2000/nret00
11.html)

COMPETITION/MERGERS

FCC SAYS LOCAL PHONE PROVIDERS CAN'T MAKE EXCLUSIVE BUILDING DEALS
Issue: Competition
Federal regulators barred local phone companies from making exclusive deals
with landlords of commercial buildings to provide phone service. The Federal
Communications Commission also decided to examine whether to extend the rule
to residential buildings. The measure is aimed at letting tenants choose
their local phone company as was mandated by the 1996 Telecommunications
Act. The decision also said rival phone and cable companies must be given
access to major areas where equipment needs to be installed. Separately, the
regulators approved freeing up some airwaves that can be used for services
including high-speed Internet in rural areas [see summary below]. John
Windhausen, president of
the Association for Local Telecommunications Services, which represents
phone companies seeking to offer competing services in commercial
buildings, was pleased with the decision. While his group wanted
residential buildings included, "we'll take what we can get," he said.
Roger Platt, a spokesman for the Real Access Alliance, which represents
landlords, also praised the
measure as "reasonable and targeted." David Bolger, a spokesman for the
U.S. Telecom Association, whose members include local phone companies with
the exclusive deals, said the group couldn't take a stance until it saw the
decision's details.
[SOURCE: Wall Street Journal (B8), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB971391378490071183.htm)
See Also:
F.C.C. BACKS PHONE-SERVICE COMPETITION IN BUSINESS COMPLEXES
[SOURCE: New York Times (C5), AUTHOR: AP]
(http://www.nytimes.com/2000/10/13/business/13TELE.html)
(requires registration)
TELECOMMUNICATIONS COMPETITION AND CONSUMER CHOICE IN MULTIPLE TENANT
ENVIRONMENTS
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/2000/nrwl0038.html)

NOI ON CABLE INTERNET ACCESS
Issue: Cable/Internet
Commission Extends Comment Dates for High-speed Internet Access Over Cable
Notice of Inquiry and Seeks Comment on USTA Petition for Declaratory Ruling
Regarding Universal Service Obligations of Cable Operators.
For further information, contact: Johanna Mikes or Christopher Libertelli,
Policy and Program Planning Division, Common Carrier Bureau at (202)
418-1580; William Johnson, Cable Services Bureau, at (202) 418-7200; Robert
Cannon, Office of Plans and Policy, at (202) 418- 2030; or Douglas Sicker,
Office of Engineering and Technology, at (202) 418-2478. Information
regarding this proceeding is also available at the following FCC web page:
www.fcc.gov/broadband/.
For further information regarding the USTA petition, contact: Katherine
Schroder, Accounting Policy Division, Common Carrier Bureau at (202)
418-7400, TTY (202) 418-0484.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/2000/da002329.html)

STUDY: GOVERNMENT AGENCIES COMPETING AGAINST PRIVATE E-COMMERCE
Issue: E-Commerce
A new industry study shows that a number of federal government agencies are
launching Web sites that directly compete against private-sector companies.
These federal agency sites allow consumers to pay bills, purchase
government documents and look for jobs online. The report commissioned by
the Computer and Communications Industry Association says that some of
these sites are crossing the line into activities that should be left to
private companies. The study recommends 12 principles that could be used to
help determine whether a government agency's online activities should be
permitted. "We must never fool ourselves that the government ought to
become a competitor with the private sector," said Zoe Lofgren (D-CA), who
has suggested the government impose a moratorium for the next several
months on any new e-commerce initiatives.
[SOURCE: San Jose Mercury News, AUTHOR: Heather Fleming Phillips ]
(http://www.mercurycenter.com/svtech/news/front/docs/study101300.htm)
See Also
GOVERNMENT E-VENTURES HIT AS RIVALS TO BUSINESS
[SOURCE: Washington Post (A37), AUTHOR Curt Suplee]
(http://washingtonpost.com/wp-dyn/articles/A64608-2000Oct12.html)

VIVENDI-SEAGRAM ANTITRUST INVESTIGATION IS EXPECTED TO TAKE FOUR MORE MONTHS
Issue: Mergers
The European Commission is expected to take as many as four more months to
investigate the antitrust implications of a $34 billion merger of France's
Vivendi, Canada's Seagram and Britain's Canal Plus. That means the
hopes of a speedy approval of the deal are moot, and that may delay plans
for the combined Vivendi-Seagram's desire to explore the emerging market for
wireless distribution of music, in which the two companies would have been
in a powerful position, if the merger went through. The European regulators
are concerned about the potential of Seagram's Universal unit to clinch
exclusive deals for the distribution of movies through France's Canal Plus,
one of Europe's largest pay-TV operators. Although the companies have made
concessions to address some of these concerns, the commission appears to
have decided that they don't go far enough. Vivendi, Seagram and Canal Plus
have already promised that for a period of two years Seagram's Universal
Music will not distribute its music exclusively through Vizzavi, a
wireless-Internet portal joint venture between Vivendi, Canal Plus and
Vodafone Group PLC of Britain, the world's largest mobile network operator
by subscribers. The unexpectedly close scrutiny of the deal follows by one
week a letter to Competition Commissioner Mario Monti from the U.S. Senate
Chairman of the Subcommittee on Antitrust Mike Dewine (R-OH)
complaining that U.S. acquirer companies such as America Online Inc. and
Boeing Co. have received tougher scrutiny in the merger approval process
than have European firms such as Vivendi.
[SOURCE: Wall Street Journal (A17), AUTHOR: Philip Shishkin And Kevin J.
Delaney]
(http://interactive.wsj.com/articles/SB971356122732289975.htm)
See Also:
VIVENDI OFFER ON ITS BSKYB STAKE IS REPORTED
[SOURCE: New York Times (C7), AUTHOR: John Tagliabue]
(http://www.nytimes.com/2000/10/13/business/13VIVE.html)
(requires registration)

PRIVACY

RECENT DEVELOPMENTS IN PRIVACY PROTECTION FOR CONSUMERS
Issue: Privacy
EPIC Policy Analyst Andrew Shen testified on October 11 before the House
Commerce Committee on "Recent Developments in Privacy Protection for
Consumers". In the testimony
(http://www.epic.org/privacy/internet/shen_testimony_1000.html), EPIC
argued that the current approach of self-regulation places consumer privacy
at increasing risk and that Congress should respond to public demands for
legal protections. An archived recording
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/77aaf2cda4eff4ab852569750046c67d?OpenDocument) of the hearing is
available.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)
See Also
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/77aaf2cda4eff4ab852569750046c67d?OpenDocument)

PHILANTHROPY

INTERNET MOGULS HELP TO PRESERVE ORE. PRAIRIE
Issue: Philanthropy
The Nature Conservancy has bought 27,000 acres of prairie for
$11.7 million. In all, the purchased area makes up 20 percent of the Zumwalt
prairie in the Northwest of Rhode Island and is home to one of the nation's
densest concentrations of nesting birds of prey. The Nature Conservancy has
known of the land for 20 years, but been unable to purchase it for
preservation. The Internet community changed that with a gift of $5 million.
The organization of late has been recruiting board members from the
high-tech industry. When the prairie land came up for sale, they turned to
Mike Burmeister-Brown, a Yahoo Inc. engineer and president of Second Nature
Software, which donates profits to the conservancy. He made a pitch to Glen
Boyd and Eli Shapira, founders of WebTrends, and the $5 million was secured.
"Part of philanthropy is not just the ability to give, but being able to
make a connection and feeling like you can make a difference," said Boyd,
whose Portland company makes software to track online traffic. The nature of
stock options makes it attractive for Internet millionaires to contribute,
Burmeister-Brown said. Turning their stock into cash means losing money to
capital gains taxes, but by making a charitable contribution, they can give
the whole amount. "A lot of these people, yeah, they're worth a lot of money
on paper," Burmeister-Brown said. "But they've had it about a year and a
half. It's foreign to them. Suddenly there's a sense of responsibility and
power, with the emphasis on the responsibility."
[SOURCE: Washington Post (A20), AUTHOR: Jeff Barnard]
(http://washingtonpost.com/wp-dyn/articles/A428-2000Oct13.html)

--------------------------------------------------------------
...and we're outta here. Are we really ready for a subway series?

TELEVISION
FCC's Chief Blasts Broadcasters For Delays in Digital-TV Shift (WSJ)
A Fix for the Broadcast Giveaway (NYT)
The Ad Campaign: Attacking Bush on Pollution (NYT)
In an Ad, Radio's 'Dr. Laura' Says She Regrets
Hurting Gays (NYT)
On a TV Show, Jerusalem is All Anger and Yelling (NYT)
Hunan Style Television: Spicy and Crowd Pleasing (NYT)

SPECTRUM
NextWave Fails to Win Supreme Court Hearing (WSJ)

MERGERS
EU Regulators Back AOL Time Warner (WP)
Why U.S. Giants Are Crying Uncle (NYT)

INTERNET
3 Men Vital to Internet Share Physics Prize (NYT)

JOURNALISM
Court Frees Serbian Journalist Jailed by Milosevic Government (NYT)

PUBLIC HEARINGS TODAY
Forum for Hispanic Consumers (FCC)
Recent Developments in Privacy Protections for Consumers (House)

INTERNATIONAL
China Lists New Rules For Telecom Investment (WSJ)

TELEVISION

FCC'S CHIEF BLASTS BROADCASTERS FOR DELAYS IN DIGITAL-TV SHIFT
Issue: Television/Spectrum
Federal Communications Commission Chairman William Kennard has attacked the
broadcasting industry, charging it with moving too slowly in its conversion
from analog to digital television and trading public-interest duties for
financial interest when it comes to political coverage. Four years ago,
Congress granted broadcasters a second channel to convert from their current
analog channel to digital and offer both high-definition and digital TV. As
part of the deal, broadcasters keep their analog channel until digital TV,
or DTV, penetration reaches 85% or 2006, whichever is later. The value of
the spectrum given to broadcasters for the conversion to digital has been
estimated at $70 billion. "Basically, the broadcast networks were the
beneficiaries of the biggest government giveaway since Peter Stuyvesant
bought Manhattan from the Indians for $24," Mr. Kennard said, adding that
"the networks' business model for the next decade can be summed up by the
slogan of Twix candy bars: 'Two for me, none for you!'" In a move sure to
anger broadcasters, Mr. Kennard wants Congress to require the nation's
television stations to pay rent for the use of their analog channel after
Jan. 1, 2006. The "spectrum-squatters fee," as Mr. Kennard called it, would
increase annually until the digital transition is complete and the analog
spectrum is returned. The revenue from the fee, he added, could be used to
fund digital conversion for public television.
[ SOURCE: Wall Street Journal (B12), AUTHOR: Joe Flint And Evan Ramstad]
(http://interactive.wsj.com/articles/SB971196719351454015.htm)
See Also:
SPEECH: WHAT DOES $70 BILLION BUY YOU ANYWAY?
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/2000/nrmc0044.html)
(http://www.fcc.gov/Speeches/Kennard/2000/spwek023.html)

A FIX FOR THE BROADCAST GIVEAWAY
Issue: Television/Spectrum
[Editorial] The Times voices support for FCC Chairman William Kennard's
3-prong approach for the lagging rollout of digital television services. In
1996 Congress gave broadcasters enough new spectrum to broadcast either one
channel of super-high-resolution digital programs or several channels that
could be used for digital interactive services or TV programs of high, but
not super-high, resolution. Existing broadcasters were also allowed to keep
the spectrum they now use to broadcast analog programs until at least 2006
-- or until 85 percent of American homes are converted to digital
television, which could be decades from now. Chairman Kennard wants
Congress to eliminate the 85 percent threshold. He wants to impose a tax on
broadcasters that fail to convert to digital broadcasting by 2006. He also
wants to require that TV sets sold after 2002 come with a chip capable of
receiving digital signals, guaranteeing broadcasters and manufacturers a
large audience. The chip would cost about $100 today, but a fraction of
that once it is mass produced.
[SOURCE: New York Times (A30), AUTHOR: NYT Editorial Staff]
(http://www.nytimes.com/2000/10/11/opinion/11WED2.html)
(requires registration)

THE AD CAMPAIGN: ATTACKING BUSH ON POLLUTION
Issue: Political Discourse
The Democratic Party started running three attack ads against Gov Bush this
week dealing with education and the minimum wage in Texas -- and Bush's
performance on the environment. "Last year, Houston overtook Los Angeles as
America's smoggiest city," the pollution ad's announcer tells viewers.
Conservationists say Mr. Bush left himself open to attack by showing little
interest in environmental issues until he became a presidential candidate.
Mr. Bush, a former oil executive, is hard- pressed to distance himself from
some of the state's heaviest polluters, but his supporters insist he has
used his ties to reduce certain toxic emissions in a state that is largely
skeptical of environmental regulations.
[SOURCE: New York Times (A28), AUTHOR: Christopher Marquis]
(http://www.nytimes.com/2000/10/11/politics/11ADBO.html)
(requires registration)
See Also:
LAZIO RUNS NATIONAL AD CAMPAIGN TO RAISE MONEY FOR HIS SENATE RACE
[SOURCE: New York Times (C20), AUTHOR: Randal Archibold]
(http://www.nytimes.com/2000/10/11/politics/11SENA.html)
(requires registration)

IN AN AD, RADIO'S 'DR. LAURA' SAYS SHE REGRETS HURTING GAYS
Issue: Media & Society
"In talking about gays and lesbians, some of my words were poorly chosen,"
says Laura Schlessinger in an ad that will run today in Variety magazine.
"I deeply regret the hurt this situation has caused the gay and lesbian
community." Under heavy pressure from protesters, dozens of advertisers
have suspended their support of her radio and television programs. Kraig T.
Kitchin, president and chief operating officer of Premiere Radio Networks,
which syndicates her highly rated radio program, said nearly 25 percent of
its sponsors had ceased advertising, at least temporarily, in the past few
months.
[SOURCE: New York Times (A18), AUTHOR: Jim Rutenberg]
(http://www.nytimes.com/2000/10/11/national/11LAUR.html)
(requires registration)

ON A TV SHOW, JERUSALEM IS ALL ANGER AND YELLING
Issue: Political Discourse
Ted Koppel's "Nightline" taped a town meeting in the Holy Land yesterday,
but the show exploded in arguments that reflected the degenerated state of
the Israeli-Palestinian relationship. Mr. Koppel sat back and let it wash
over him. "I surrender," he said, at one point. Diplomatic solutions, Mr.
Koppel asserted, cannot be negotiated on television.But he was the only
American to have succeeded this week in engineering any kind of talks
between the two sides.
[SOURCE: New York Times (A10), AUTHOR: Deborah Sontag]
(http://www.nytimes.com/2000/10/11/world/11NIGH.html)
(requires registration)

HUNAN STYLE TELEVISION: SPICY AND CROWD PLEASING
Issue: Media & Society
While Hunan Satellite TV, the most successful television station in China,
is government-owned, like all stations in China, it managed to break out of
the state television mold. It still formally operates under the Communist
Party's propaganda department, but the station's nightly news features
investigative pieces on corruption and pollution. "Twenty years ago, China
was a planned economy and we were just a propaganda mouthpiece," said Wei
Wenbin, who founded the station and was recently promoted to director of
the Hunan Provincial Broadcast and Television Bureau. As China moves toward
a market economy, government regulators are increasingly willing to bend
rules to allow stations to compete. "In the past, television was part of a
government bureaucracy, but now it's more of a commercial endeavor," said
Mr. Wei.
[SOURCE: New York Times (A4), AUTHOR: Elisabeth Rosenthal]
(http://www.nytimes.com/2000/10/11/world/11CHIN.html)
(requires registration)

SPECTRUM

NEXTWAVE FAILS TO WIN SUPREME COURT HEARING
Issue: Spectrum
The Supreme Court refused to hear the case of a wireless-communications
company that is trying to retrieve licenses repossessed by the Federal
Communications Commission. NextWave Personal Communications Inc. had asked
the Supreme Court to uphold a bankruptcy-court ruling that NextWave deserved
the licenses that it won in a 1996 auction, but later lost when it failed to
make timely payments on them. The FCC now plans to re-auction the licenses
on Dec. 12. The Supreme Court's decision Tuesday not to hear the case is the
latest twist in a complicated high-stakes battle over who controls the
limited radio spectrum that can be used for a wide range of wireless voice
and data services.
[ SOURCE: Wall Street Journal (B14), AUTHOR: JILL CARROLL and NICOLE HARRIS
(http://interactive.wsj.com/articles/SB971220884661526861.htm)

MERGERS

EU REGULATORS BACK AOL TIME WARNER
Issue: Merger
The European Union antitrust authorities have formally endorsed the giant
merger between America Online and Time Warner after extracting concession
from the companies aimed at guaranteeing that they will not unfairly
discriminate against their rivals. The largest barrier to EU approval to the
$183 billion deal disappeared last week when the Warner Music Group abandon
its bid to from a separate joint venture with Britain's EMI Group. EU
authorities feared the union would have given AOL-Time Warner to much
control over digital music on the Internet. Major concessions included AOL's
agreement to dissolve its European partnership with the German media giant
Bertelsmann AG, which has held a 50 percent stake in AOL Europe, and to
revamp the shareholding structure of AOL France. AOL has agreed to make its
service compatible with three different music-player software technologies
used by competing suppliers such as RealNetworks and Microsoft for five years
to reassure EU regulators that it would not seek to maintain a "walled
garden" in online entertainment. The merger, which would combine an Internet
giant boasting 24 million customers with the world's largest media and
entertainment company, still must receive clearance from two regulatory
agencies in the United States.
[SOURCE: Washington Post (E01), AUTHOR: William Drozdiak]
(http://washingtonpost.com/wp-dyn/articles/A47348-2000Oct10.html)
See Also
EU REGULATORS GIVE APPROVAL FOR AOL-TIME WARNER MERGER
[ SOURCE: Wall Street Journal (), AUTHOR: Brandon Mitchener & John Wilke]
(http://interactive.wsj.com/articles/SB971215521654566002.htm)
WHY U.S. GIANTS ARE CRYING UNCLE
Mario Monti, the European Union's chief antitrust regulator, is expected to
approve the proposed merger between Time Warner and America Online - but not
without sizable concessions. Since Monti became the commissioner in charge
of competition affairs last year, he has gained a reputation of being
hard-hitting on mergers. "People say he is much tougher," said Christopher
Norall, an antitrust lawyer at the firm of Morrison & Foerster here. "But,
to be fair, these cases present new issues where each wave of mergers brings
successive waves of concentration."
[SOURCE: New York Times (W1), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/2000/10/11/business/11EURO.html)
(requires registration)

INTERNET

3 MEN VITAL TO INTERNET SHARE PHYSICS PRIZE
Issue: Internet
The Royal Swedish Academy of Sciences has awarded the 2000 Nobel Prize in
Physics to three scientists who developed electrical components that allow
for fast communication using fiber optics and satellites and that serve as
the soul of the personal computer. [Surprisingly, not one is Al Gore. Go
figure.] Half of this year's prize money, which totals 9 million kronor or
about $913,000, will go to Jack S. Kilby, a 76-year-old retired engineer
for Texas Instruments in Dallas, for his part in the invention of the
integrated circuit, the miniaturized electronic chip that drives computers.
The other half is to be split by Dr. Zhores I. Alferov, the director of the
A. F. Ioffe Physico-Technical Institute in St. Petersburg, Russia, and Dr.
Herbert Kroemer, a physicist and professor at the University of California
at Santa Barbara.
[SOURCE: New York Times (A23), AUTHOR: James Glanz]
(http://www.nytimes.com/2000/10/11/science/11PHYS.html)
(requires registration)

JOURNALISM

COURT FREES SERBIAN JOURNALIST JAILED BY MILOSEVIC GOVERNMENT
Issue: Journalism/International
Miroslav Filipovic, a Serbian journalist, was released from a military
prison in Serbia yesterday after serving five months of a seven year
sentence. Mr. Filipovic's crime was reporting on Yugoslav Army war crimes
in Kosovo. The Supreme Military Court ordered the release pending a
retrial, ruling there had been serious violations of legal procedures in
the first trial. The decision appears to have been influenced by the new
administration of President Vojislav Kostunica.
[SOURCE: New York Times (A8), AUTHOR: Carlotta Gall]
(http://www.nytimes.com/2000/10/11/world/11PRIS.html)
(requires registration)

PUBLIC HEARINGS TODAY

FORUM FOR HISPANIC CONSUMERS
Issue: Consumers
The Federal Communications Commission's Consumer Information Bureau will
host a Forum for Hispanic consumers TODAY Wednesday, October 11, 2000, from
1:00 to 3:30 PM. The Forum will be held in the FCC's Commission Meeting
Room, TW-C305, 445 12th Street, SW, Washington, D.C.
The Forum will provide an opportunity for Hispanic consumers to participate
in panel discussions and presentations by industry representatives,
Hispanic leaders and FCC staff on various issues affecting the Hispanic
community, including international billing rates/customer service, low
power FM radio, and the digital divide [broadband/internet and other
services]. Each discussion and presentation will be followed by a brief
question and answer session.
For additional information, please contact Patricia A. Chew, Consumer
Education Office, (202) 418-0514 or e-mail at pchew( at )fcc.gov. For TTY please
contact ShaVonne Morris at (202) 418-2520.
To listen online, see (http://www.fcc.gov/realaudio/)
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Consumer_Information/Public_Notices/2000/pnci006
6.html)

RECENT DEVELOPMENTS IN PRIVACY PROTECTIONS FOR CONSUMERS
Issue: Privacy
TODAY 10:00 a.m. in 2123 Rayburn House Office Building
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a hearing on Wednesday, October 11, 2000 at 10:00 a.m. in 2123
Rayburn House Office Building. The hearing will be entitled: "Recent
Developments in Privacy Protections for Consumers." Witnesses will be by
invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

INTERNATIONAL

CHINA LISTS NEW RULES FOR TELECOM INVESTMENT
Issue: International
China published regulations Tuesday that sets out clearly for the first time
which businesses are defined as "value-added" telecom services. They include
Internet services and content, e-mail and databases, as well as the
reselling of basic telecom services to third parties. The rules also state
clearly for the first time that domestic private investment will be allowed
in this sector. Under the trade deal China signed with the U.S. last
November as part of the country's bid to join the WTO, China had pledged to
open the value-added sector up to as much as 50% foreign ownership. China's
Ministry of Information Industries which oversees the telecom sector, is
fiercely protectionist and inclined to build up domestic players in the
sector. While industry observers welcomed the law as far clearer than an
earlier draft that has been circulating among officials and industry
executives, the regulations still leave unresolved key issues, among them
detailed guidelines for foreign investment in the telecom sector. These will
come in a separate regulation governing foreign investment in telecom
enterprises, which is expected to be passed before the country formally
enters the WTO.
[ SOURCE: Wall Street Journal (A21), AUTHOR: Leslie Chang]
(http://interactive.wsj.com/articles/SB971218570633816951.htm)

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

TELEVISION
Political Editorial and Personal Attack Rules (FCC)
TV Broadcasters and Disclosure Requirements (FCC)
Digital Television Broadcasters Children's
Television Obligations (FCC)

INTELLECTUAL PROPERTY
Digital Divas Tech Group Rumps Microsoft (SJM)

MERGERS
SBC, BellSouth Finalize Merger (WP)
Some Other Contenders For Rich EMI Repertory (NYT)
The Future of the Interactive Television
Services Marketplace (House)

ECOMMERCE
Speaking in Bar Code (NYT)

PRIVACY
Recent Developments in Privacy Protections
for Consumers (House)

TELEVISION

POLITICAL EDITORIAL AND PERSONAL ATTACK RULES
Issue: Broadcasting/Political Discourse
From Press Release: The FCC suspended its political editorial and personal
attack rules
for 60 days, and asked parties to then submit evidence on the effect of the
suspension. The political editorial rule provides generally that if a
licensee airs an editorial supporting a political candidate, it
must notify other candidates for that office of the editorial and provide
them an opportunity to respond on-the-air. Similarly, the personal attack
rule provides generally that when, during a program on a controversial issue
of public importance, an attack is made on someone's integrity, the licensee
must inform the subject of the attack and provide an opportunity to respond
on-the-air. The Commission noted that broadcasters have contended generally
that the rules have had a "chilling effect" on programming, and specifically
that elimination of the political editorial reply rule would increase
broadcast station editorializing. The Commission said that temporarily
suspending the rule during the current election period would enable it to
receive updated information on these issues. With respect to the personal
attack rule, the Commission said it expects broadcasters to collect
information regarding complaints concerning personal attacks received while
the rule is suspended, and to compare the number and nature of the
complaints during this 60-day suspension period to a comparable period while
the rule was in effect.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/2000/nrmm0041.html)

TV BROADCASTERS AND DISCLOSURE REQUIREMENTS
Issue: Television
From Press Release: The FCC is proposing to standardize and enhance public
interest disclosure
requirements for television broadcasters. In a Notice of Proposed Rulemaking
(NPRM), the FCC tentatively concludes that television
broadcasters should provide information on how they serve the public
interest in a standardized format on a quarterly basis. The disclosure form
would be maintained in the station's public inspection file in place of the
currently required issues/programs lists. The Commission notes that given
the benefits to be derived from enhanced public disclosure, it should not
wait until after the digital transition to implement this proposal.
The FCC is also proposing to enhance the public's ability to access this public
interest information by requiring licensees to make the contents of their
public inspection files, including the standardized disclosure form,
available on the station's or a state broadcasters association's Internet
website. The NPRM is based upon the comments received in response to the
Notice of
Inquiry released December 20, 1999. Full text of notice available at URL below.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/Notices/2000/fcc00345.pdf)

DIGITAL Television BROADCASTERS CHILDREN'S TELEVISION OBLIGATIONS
Issue: Television
From Press Release: The FCC is asking for comments on the obligation of DTV
broadcasters to provide educational and informational programming for
children and the requirement that DTV broadcasters limit the amount of
advertising in children's programs. In a Notice of Proposed Rulemaking, the
Commission is asking for comment largely on challenges unique to the digital
age but also explored several issues that children's advocates have raised
about children's educational and informational programming in general. Full
text of notice available at URL below.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/Notices/2000/fcc00344.pdf)

INTELLECTUAL PROPERTY

DIGITAL DIVAS TECH GROUP RUMPS MICROSOFT
Issue: Intellectual Property
A small women's technology group called the Digital Divas is claiming
victory over software giant Microsoft. Earlier this year, the company had
bestowed Stacy Elliot, a consumer product manager, with the official title
of Digital Diva. Dana Whitmire, who founded the Digital Divas in 1997 to
introduce Internet technology to neophytes, threatened to sue the Microsoft
for trademark infringement. While Whitmire's group had not officially
trademarked its name at the time Microsoft began using "Digital Diva," she
claimed they had built a reputation with the name over time and had a right
to keep it. Microsoft has decided to relinquish claim on the name, which is
rare for a large corporation. "You have to pick your battles," said Microsoft
spokesman Adam Sohn. "Just because you feel you have a good chance in court
doesn't mean you take it. At end of day it was just a smarter move to
put this thing behind us and not have a big protracted fight."
[SOURCE: San Jose Mercury News, AUTHOR: Kristi Heim]
(http://www.mercurycenter.com/svtech/news/front/docs/diva100600.htm)

MERGERS

SBC, BELLSOUTH FINALIZE MERGER
Issue: Merger
SBC Communications and BellSouth officially merged their wireless operations
on Thursday, creating a new company named "Cingular Wireless." With 19
million customers in 42 of the nation's top 50 markets, Cingular surpasses
AT&T Wireless and its 14 million subscribers as the No. 2 player in the
industry. Cingular is actually a merger of 11 different brand names,
including Cellular One, BellSouth
Mobility, and a hodgepodge of names derived from SBC's various local phone
subsidiaries.
[SOURCE: Washington Post (Online), AUTHOR: Bruce Meyerson]
(http://washingtonpost.com/wp-dyn/articles/A19563-2000Oct5.html)

SOME OTHER CONTENDERS FOR RICH EMI REPERTORY
Issue: Mergers
With the demise of its proposed merger with Time Warner, EMI, the 3rd
largest music company in the world, is back on the block and the suitors are
lining up. Pacific Century CyberWorks, which was interested in EMI before
the Time Warner deal was announced, is back for another look. BMG
Entertainment, a unit of Bertelsmann, may be interested as well. EMI is home
to such labels as Virgin, Capitol and EMI classics.
[SOURCE: New York Times (C13), AUTHOR: Suzanne Kapner]
(http://www.nytimes.com/2000/10/06/business/06MUSI.html)
(requires registration)
See Also:
TIME WARNER AND EMI HALT VENTURE PLAN
[SOURCE: New York Times (C1), AUTHOR: John Tagliabue]
(http://www.nytimes.com/2000/10/06/technology/06ONLI.html)
(requires registration)
REGULATORS SINK EMI-TIME WARNER DEAL, RAISING QUESTIONS ABOUT EMI'S FUTURE
[SOURCE: Wall Street Journal (A3), AUTHOR: Martin Peers, Charles Goldsmith
And Philip Shishkin]
(http://interactive.wsj.com/articles/SB970734357798394211.htm)
(Requires subscription)

THE FUTURE OF THE INTERACTIVE TELEVISION SERVICES MARKETPLACE
Issue: Mergers
Friday, October 6, 2000
9:00 a.m. in 2123 Rayburn House Office Building.
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a second day of hearings on Friday, October 6, 2000 at 9:00 a.m.
in 2123 Rayburn House Office Building. The hearing will be entitled: "Part
II: The Future of the Interactive Television Services Marketplace: What
Should Consumers Expect?" Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)
EU OBJECTION TO AOL MERGER RESOLVED
[SOURCE: Washington Post (E01), AUTHOR: William Drozdiak]
(http://washingtonpost.com/wp-dyn/articles/A4638-2000Oct3.html)

ECOMMERCE

SPEAKING IN BAR CODE
Issue: Ecommerce
By plugging in a products bar code into a cell phone, consumers will be able
to check its price at online and brick & mortar stores, get product
information, and read snippets of reviews. Yes, the humble bar code is
poised to become the key link between products and consumers in the mobile
shopping future. Companies from Motorola to GE are investing millions in bar
code technology, betting consumers will want to get product information,
make lists, connect to the Web and make purchases. But will they make the
technological leap? Many people still don't know how to program their VCRs.
There's lots of examples of possible motivators in this story, here's just
one: The Uniform Code Council, the nonprofit consortium that doles out the
codes that appear on almost every packaged product, from canned beans to
laser printers, is working with music and publishing houses to match every
song, and even every paragraph in books, with its own code that could be
kept in a data base. The idea is eventually to allow consumers to mix and
match their own creative products, while still permitting companies to
gather royalties and information about use on an individual level. For more
on our bar coded future, see the URL below.
[SOURCE: New York Times (C1), AUTHOR: Leslie Kaufman]
(http://www.nytimes.com/2000/10/06/technology/06CODE.html)
(requires registration)

PRIVACY

RECENT DEVELOPMENTS IN PRIVACY PROTECTIONS FOR CONSUMERS
Issue: Privacy
Wednesday, October 11, 2000 10:00 a.m. in 2123 Rayburn House Office Building
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a hearing on Wednesday, October 11, 2000 at 10:00 a.m. in 2123
Rayburn House Office Building. The hearing will be entitled: "Recent
Developments in Privacy Protections for Consumers." Witnesses will be by
invitation only.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/)

--------------------------------------------------------------
...and we're outta here. Have a great weekend, even if the Mets win again.

MEDIA & SOCIETY
Disney to Deter Children From Some Areas of Its Web Sites (NYT)
Children's TV Programming and Public Interest Obligations
of Broadcasters (FCC)
An Online Peek at Your Politics (NYT)
A County Restricts Cell Phones While Driving (NYT)

ECOMMERCE
What Price Fairness? (NYT)
Tough New Rules Don't Faze Chinese Internet Start-Ups (NYT)

INTERNET
ICANN Pursuing Slowest-Possible Expansion Of Net Domain Names (SJM)
Ties Taint Carnivore Review (USA)
Key Firms Back Bill on Web Privacy (WP)

MERGERS
Regulators Widen AOL Review to Probe Role of Set-Top Boxes in
Internet Access (WSJ)
AOL Fires Back at Disney Over Opposition to Deal (WP)
New Prospects Seen in Europe For EMI Deal (NYT)

AT CONGRESS
Community Radio Faces 11th-Hour Battle On Hill (WP)
Congress Approves a Big Increase In Visas
for Specialized Workers (NYT)
Commerce Markup Session (House)

MEDIA & SOCIETY

DISNEY TO DETER CHILDREN FROM SOME AREAS OF ITS WEB SITES
Issue: Media & Society
In an agreement with the Council of Better Business Bureaus, the Walt Disney
Internet Group has pledged to do a better job of ascertaining the age of
children who register for interactive activities on Disney sites and will
prohibit children under 13 from certain areas, including chat rooms, where
inappropriate banter and images can be found. The council found that
Disney's sites asked for new members' ages in three categories: 12 or
younger, 13 to 17, and 18 or over. It said such categories could "encourage
children to provide inaccurate information" to get access to more adult
fare. Because children in chat rooms may divulge information that can
identify them, enforcement of the age restrictions is important to protect
their privacy, officials of the Council of Better Business Bureaus said.
Kathryn Montgomery, president of the Center for Media Education, an advocate
of regulation of child- oriented Web sites, said that calling yesterday's
agreement with Disney "self-regulation" only told half of the story. "It
isn't just self regulation -- it's self-regulation within a regulatory
context," she said. "Had we not passed the law to protect children's
privacy, it's doubtful that there would be effective self- regulation."
[SOURCE: New York Times (C4), AUTHOR: John Schwartz]
(http://www.nytimes.com/2000/10/04/technology/04WEB.html)
(requires registration)

CHILDREN'S TV PROGRAMMING AND PUBLIC INTEREST OBLIGATIONS OF BROADCASTERS
Issue: Television
The Federal Communications Commission will hold an en banc hearing on
Monday, October 16, 2000, examining the public interest obligations of
television broadcasters. The hearing will commence at 9:00 a.m. at the
Commission's headquarters, 445 12th Street, S.W., Washington, D.C. The en
banc hearing will be included as part of the record that the Commission is
developing as it considers the public interest obligations of broadcasters
as they transition to digital television. Once the record has been fully
developed, the Commission will examine the steps it may take to ensure that
television licensees continue to serve the needs of their communities and to
address the needs of children in the digital television era. The hearing is
open to the public, and seating will be available on a first come, first
served basis. All interested persons are invited to attend. A transcript
of the hearing will be available ten (10) days after the event on the FCC's
Internet site.
Mass Media Bureau contacts: Susanna Zwerling (202) 418-2600; Kim Matthews
(202) 418-2120; Julie Barrie (202) 418-2120; Jamila Bess Johnson (202) 418-2600.
[SOURCE: FCC]
(http://hraunfoss.fcc.gov:8888/edocs_public/attachmatch/DOC-206252A1.txt)

AN ONLINE PEEK AT YOUR POLITICS
Issue: Privacy
[Op-Ed] Two former Federal Election Commission employees have launched a Web
site that allows visitors to search for political donors by zip code,
allowing us to see if and to who our neighbors give cash to. Bernsten
describes the feeling of surfing the site as "peering inside the voting
booth, the sanctum sanctorum of democratic freedom." Bernstein feels the
site and others like it could have a chilling effect on donations. "The
operators of the site are perfectly within their rights to post all this
information. Federal laws do more than permit disclosure of such political
donations: they require it. Full disclosure, I realize, makes it easier to
enforce the individual donor limit. But surely a less public system -- one,
say, under which the parties have access to one another's donor lists --
would serve that purpose."
[SOURCE: New York Times (A31), AUTHOR: Fred Bernstein, NYU Law School]
(http://www.nytimes.com/2000/10/04/opinion/04BERN.html)
(requires registration)

A COUNTY RESTRICTS CELL PHONES WHILE DRIVING
Issue: Safety
Suffolk County (NY) [I get homesick just typing it] is believed to be the
first county in the country to adopt a ban on hand-held cell phone use while
driving. The legislation prohibits the use of a cell phone while driving
unless it is equipped with an earpiece or can act like a speakerphone,
leaving the driver's hands free. Emergency calls are exempted from the ban.
People are allowed to dial while driving, and to hit a button to answer
incoming calls, as long as they do not hold a phone. A number of cities have
adopted similar bans or are considering them -- as do 13 nations including
Britain, Israel, Italy and Australia.
[SOURCE: New York Times (C30), AUTHOR: Tina Kelley]
(http://www.nytimes.com/2000/10/04/nyregion/04CELL.html)
(requires registration)

ECOMMERCE

WHAT PRICE FAIRNESS?
Issue: Ecommerce
[Op-Ed] A look at "dynamic pricing," Amazon's practice of charging different
customers different prices for movies --based on customer characteristics,
some fear. Krugman predicts that dynamic pricing will not go away -- despite
recent customer backlash -- and is bound to become a major consumer and
perhaps political issue. Dynamic pricing is a new version of an old
practice: price discrimination. It uses a potential buyer's electronic
fingerprint -- his record of previous purchases, his address, maybe the
other sites he has visited -- to size up how likely he is to balk if the
price is high. If the customer looks price-sensitive, he gets a bargain; if
he doesn't he pays a premium. The practice could actually be good for the
economy however, especially in industries with high fixed costs, but low
marginal costs (like in book publishing). But the Robinson-Patman Act may
outlaw the practice if it is found to be anticompetitive. "One thing is
clear," Krugman concludes, "The next battle in the eternal conflict between
equity and efficiency may well be in cyberspace."
[SOURCE: New York Times (A31), AUTHOR: Paul Krugman]
(http://www.nytimes.com/2000/10/04/opinion/04KRUG.html)
(requires registration)

TOUGH NEW RULES DON'T FAZE CHINESE INTERNET START-UPS
Issue: International
Chinese Internet entrepreneurs and their foreign backers expressed only mild
concern about the potential impact of new rules published on Monday
that require all Internet companies to apply for licenses in the next two
months. The new rules say that companies must abide by laws that effectively
ban direct foreign investment in the industry and that Internet
companies will be held responsible for content carried on their Web sites.
The rules also reiterate government bans on various forms of Internet
content, including anything deemed subversive, pornographic or related to
cults. Companies violating the new rules could face fines up to US $120,000,
or be shut down. People in the Internet business say most companies are
already set up to avoid China's foreign ownership rules and that they
exercise self-censorship to avoid conflicts with the government. Still, the
new rules, if strictly enforced, could complicate things for Internet
companies. "That's not a situation that any major foreign investor would
want to be associated with," said Duncan Clark, a telecommunications
consultant based in Beijing, "let alone a domestic Internet content provider
that would be seen as turning in its customers."
[SOURCE: New York Times (C2), AUTHOR: Craig Smith]
(http://www.nytimes.com/2000/10/04/technology/04NET.html)
(requires registration)

INTERNET

ICANN PURSUING SLOWEST-POSSIBLE EXPANSION OF NET DOMAIN NAMES
Issue: Internet
[Commentary] Yesterday, ICANN announced that it received almost four dozen
applications for new top-level Internet domains (TDL) to complement .com,
.org .net, each with a fee of $50,000. ICANN oversees the Domain Name
System, which is the address system for the Internet. No one knows for sure
how many new TLDs will result from this selection process, but many in the
Internet community guess the number will be around three. The small number
of new names and the high price of applying leads Gillmore to suggest that
ICANN "has been almost totally co-opted by large commercial and trademark
interests" and "is pursuing the slowest-possible expansion of TLDs." Jamie
Love, director of the Consumer Project on Technology (www.cptech.org), said:
"The new TLD applications illustrate how limited the current domain space
is, and how rich it could be...ICANN now needs to move ahead to permit
greater choice and more innovations in the TLD name space."
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
(http://www.mercurycenter.com/svtech/columns/front/docs/dg100400.htm)

TIES TAINT CARNIVORE REVIEW
Issue: Security/Privacy
[Editorial] The Justice Department has ordered an independent review
intended to settle public fears about Carnivore, a computer system that can
tap into e-mail. USAToday, however, has concerns about the independence of
the selected reviewer. The Illinois Institute of Technology Research
Institute (IITRI) has accepted limitations on its research required by the
Justice Department, including the power to censor its final report. In
addition, the high-tech branch of the research institute, which will perform
the analysis, receives 80% of its funding from the federal government. The
paper also articulates concerns about government connections to the
individual staff members named to work on the review. USAToday concludes
that the "decision to hire political insiders combined with its taste for
secrecy has only increased concerns that the Clinton administration is not
interested in an independent review."
[SOURCE: USAToday (27A), AUTHOR: USAToday Editorial Staff]
(http://www.usatoday.com/usatonline/20001004/2717405s.htm)

KEY FIRMS BACK BILL ON WEB PRIVACY
Issue: Privacy
America Online and Hewlett-Packard are throwing their weight behind a
congressional bill that would protect Internet users' privacy. But consumer
advocates say the legislation does not go far enough. The AOL and
Hewlett-Packard representatives told members of the Senate Commerce, Science
and Transportation Committee that they support a bill introduced by John
McCain (R-AZ), the committee chairman, and John F. Kerry (D-MA). Under
the bill, World Wide Web sites must give online visitors conspicuous notice
of their privacy policies and an "opt out" method for the company's efforts
to collect data about users. It also gives the Federal Trade Commission the
authority to enforce these requirements. Consumer advocates argues that most
people just don't have the time or expertise to locate a company's privacy
policy and to check the appropriate boxes to stop the data collection.
"Privacy notices without other substantive rights operate more like warning
labels or disclaimers than actual privacy safeguards," said Marc Rotenberg,
executive director of the Electronic Privacy Information Center. At the end
of yesterday's hearing, Sen McCain announced that he will convene more
hearings on the online privacy issue in January.
[SOURCE: Washington Post (E01), AUTHOR: Ariana Eunjung Cha]
(http://washingtonpost.com/wp-dyn/articles/A5310-2000Oct3.html)

MERGERS

REGULATORS WIDEN AOL REVIEW TO PROBE ROLE OF SET-TOP BOXES IN INTERNET
ACCESS
Issue: Mergers
The Federal Trade Commission and the Federal Communications Commission are
expanding their review of AOL and Time Warner merger to include set-top
boxes, the gateway for receiving the Internet on television sets. Regulators
have started to scrutinize the role of the boxes as a potential bottleneck
in the delivery of Internet services because if a company can control the
box, it can control what gets through the cable line and onto the television
screen. Interactive television, which could include e-mail, e-commerce,
instant messaging and even telephone service, would flow through set-top
boxes. The intense scrutiny came after the companies told the FCC that an
agreement to open their cable lines to rival Internet-service providers
didn't include set-top boxes, although the companies did say Time Warner
Cable is "always willing to discuss business arrangements with potential
providers of any other services." Some of the issues raised in the merger of
Time Warner and AOL never have been addressed in previous mergers, and the
review sometimes shifts to accommodate what regulators learn along the way.
[SOURCE: Wall Street Journal (B8), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB970611993562388136.htm)
(Requires subscription)
See Also:
THE FUTURE OF THE INTERACTIVE TELEVISION SERVICES MARKETPLACE
Issue: Mergers
Friday, October 6, 2000
9:00 a.m. in 2123 Rayburn House Office Building.
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a second day of hearings on Friday, October 6, 2000 at 9:00 a.m.
in 2123 Rayburn House Office Building. The hearing will be entitled: "Part
II: The Future of the Interactive Television Services Marketplace: What
Should Consumers Expect?" Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)
EU OBJECTION TO AOL MERGER RESOLVED
[SOURCE: Washington Post (E01), AUTHOR: William Drozdiak]
(http://washingtonpost.com/wp-dyn/articles/A4638-2000Oct3.html)

AOL FIRES BACK AT DISNEY OVER OPPOSITION TO DEAL
Issue: Mergers
America Online specifically addresses complaints raised by Disney in its
latest filing with the FCC. "A handful of competitors--most conspicuously
the Walt Disney Co.--have argued that AOL Time Warner will harm competition
by discriminating against nonaffiliated program providers . . . these
contentions lack a grounding in fact," AOL and Time Warner wrote in the
Sept. 29 letter to the FCC. Until this letter, AOL has refrained from naming
or trading blows with its rivals. But some believe the letter is a sign of
AOL's worries about the merger. "This is to some degree a sign of AOL's
increasing nervousness about getting approval," said Harold Feld, associate
director of the Media Access Project, a D.C.-based nonprofit public interest
law firm that has expressed concern over the merger. "The ultimate thing to
do when you're being pressured by regulators is to say, 'Our competitor is
trying to seek a competitive advantage in the regulatory arena, and you
regulators should not fall for that,' " Feld said. Disney has been locked in
a bitter feud with AOL and Time Warner since at least May, when Time Warner
temporarily blocked ABC programming for 3.5 million of its cable television
subscribers because of a contract dispute.
[SOURCE: Washington Post (E01), AUTHOR: Alec Klein]
(http://washingtonpost.com/wp-dyn/articles/A4148-2000Oct3.html)

NEW PROSPECTS SEEN IN EUROPE FOR EMI DEAL
Issue: Mergers
It was just last week when the European commission recommended that European
Union countries reject the Time Warner-EMI deal because it would reduce the
number of worldwide music distributors to four from five and could severely
reduce competition in the industry. This week, European regulators are
considering approving the proposed $20 billion combination of the music
division of Time Warner and the EMI Group
into a joint venture, a development that would remove the last major barrier
in Europe to the acquisition of Time Warner by America Online. The change of
heart comes in the wake of new concessions proposed by Time Warner and EMI,
which included an offer to sell the Virgin record label, with stars ranging
from the Spice Girls to David Bowie. Before this week, the companies had
offered to sell some smaller record labels as well as EMI's European
distribution and logistics operations. The deal between Time Warner and EMI
is considered important both in its own right and in connection with Time
Warner's much bigger combination with America Online because by merging
Warner Music and EMI, the company would control one of the world's biggest
music distributors and wield enormous power with artists and retailers on
both sides of the Atlantic.
[SOURCE: New York Times (C1), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/2000/10/04/technology/04ONLI.html)
(requires registration)
See Also
EMI PROPOSES TO SELL VIRGIN LABEL, GIVING EU CONCESSIONS IT REQUIRES
[SOURCE: Wall Street Journal (A21), AUTHOR: Brandon Mitchener And Philip
Shishkin]
http://interactive.wsj.com/articles/SB970576990115952520.htm
(Requires subscription)

AT CONGRESS

COMMUNITY RADIO FACES 11TH-HOUR BATTLE ON HILL
Issue: Radio
In January, the Federal Communications Commission approved the establishment
of low-power radio service that would be licensed to churches, schools and
community groups. These new stations, which are intended to help diversify
the airwaves rapidly being bought up by a few large companies, may never get
the chance to broadcast. This summer, the House passed a bill that would
significantly restrict the number and licensing of the stations and in
September, Sen. Rod Grams (R-MN) introduced a companion bill in the Senate.
While both measures are
touted as a compromise between the FCC and lawmakers who would seek to kill
low-power stations outright. low-power advocates say the House and Senate
bills are not compromises at all. "It is a bill to kill low-power FM," said
Andrew Schwartzman, president of the Media Access Project. As the 106th
Congress nears its conclusion next week, senators friendly to the
broadcasters are eager to pass Grams's legislation and attach it to a
spending bill, say sources. As a rider, Grams's bill could be vetoed only if
the spending bill were vetoed.
[SOURCE: Washington Post (E03), AUTHOR: Frank Ahrens]
(http://washingtonpost.com/wp-dyn/articles/A5846-2000Oct3.html)
See more at (http://www.mediaaccess.org/)

CONGRESS APPROVES A BIG INCREASE IN VISAS FOR SPECIALIZED WORKERS
Issue: Jobs
Showing how fast (and slow) Congress can act when it wants to, both houses
passed legislation yesterday that will significantly increase the number of
H-1B visas available for educated foreigners. Many of these visa holders are
expected to land jobs in the high-technology industry. The votes followed
months of partisan feuding by lawmakers and aggressive lobbying by high-tech
companies. President Clinton is expected to sign the bill quickly. Only Sen
Ernest Hollings (D-SC) opposed the bill in the Senate (the Times describes
him as a longtime "job protectionist") and the legislation was passed by
voice vote in the House -- showing how much influence Silicon Valley has on
Capitol Hill. Under the bill, the Immigration and Naturalization Service
would be able to issue 195,000 H-1B visas a year, for each of the next three
years, to foreign-born workers with college degrees and special skills, up
from the existing limit of 115,000. Each visa is good for six years,
although it must be renewed after the first three.
[SOURCE: New York Times (A1), AUTHOR: Lizette Alvarez]
(http://www.nytimes.com/2000/10/04/technology/04VISA.html)
(requires registration)
See Also
CONGRESS PASSES LEGISLATION TO EXPAND NUMBER OF VISAS FOR HIGH-TECH WORKERS
[SOURCE: Wall Street Journal (B8), AUTHOR: Marjorie Valbrun]
(http://interactive.wsj.com/articles/SB97058361989360527.htm)
(Requires subscription)

COMMERCE MARKUP SESSION
Issue: Legislation
Thursday, October 5, 2000 10:00 a.m. in 2123 Rayburn House Office Building
The Full House Commerce Committee will meet in OPEN MARKUP SESSION at 10:00
a.m. on Thursday, October 5, 2000, and subsequent days if necessary, in 2123
Rayburn House Office Building, to consider measures including H.R. 3011,
Truth in Telephone Billing Act of 1999 and H. Res. 575, a resolution
supporting Internet safety awareness.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

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