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  2. December 2000

December 2000

Communications-related Headlines for 12/07/00

OWNERSHIP
FCC To Host Forum On Women- And Minority-Owned Businesses (FCC)
Murdoch tries to sweeten bid for DirecTV (USA)
Market Place: USA Networks May Sell Stations (NYT)

TELEVISION
Advertising: Cocktail Hour Returns to TV (NYT)
Coverage is costly -- but who's counting? (USA)

CONVERGENCE
After 50 Years of Effort, Interactive TV Arrives (WSJ)
Web-Video Issue Is a Pain In the Net for Olympics (WSJ)

TELEPHONY
No 10-Digit Dialing for Local Calls (NYT)

OWNERSHIP

FCC TO HOST FORUM ON WOMEN- AND MINORITY-OWNED BUSINESSES
Issue: Ownership/Diversity
FCC Chairman William Kennard and Commissioner Gloria Tristani will host a
policy forum on market entry barriers faced by small, women- and
minority-owned businesses in the communications industry on Tuesday,
December 12, 2000, from 9:30 AM to 1:00 PM. The Policy Forum will be held in
the FCC's Commission Meeting Room, TW-C305. Findings of a series of studies
which examine the extent, if any, to which small, women- and minority-owned
firms in the communications industry experience market entry barriers will
be presented at the public forum.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/OGC/Public_Notices/2000/da002712.html)

MURDOCH TRIES TO SWEETEN BID FOR DIRECTV
Issue: Mergers
News Corp. CEO Rupert Murdoch is trying to raise $8 billion to sweeten his
cash and stock offer to buy Hughes Electronics' DirecTV from General Motors.
Sources familiar with the situation say that Murdoch as enlisted the help of
Chase Manhattan Bank, Microsoft and Liberty Media's John Malone. Murdoch
needs cash because Hughes Electronics, wants liquid and stable currencies
for the assets that analysts say are worth more than $40 billion. Hughes is
wary of taking shares in Murdoch's new satellite subsidiary, Sky Global
Networks, because assessing the value of that venture is difficult. The
company's are also considering alternative arrangements, such as folding Sky
Global into Hughes. Unresolved is the Hughes equity he'd get in return.
Estimates range from 30% to 49%.
[SOURCE: USA Today (1B), AUTHOR: David Lieberman]
(http://www.usatoday.com/usatonline/20001207/2896308s.htm)

MARKET PLACE: USA NETWORKS MAY SELL STATIONS
Issue: Ownership/Television
After two years of trying to program its 12 television stations with local
formats, USA Networks has announced that it is putting the stations up for
sale or seeking a joint venture for them. Altogether, USA's station group
lost $60 million last year on revenue of $8.6 million. Though the company
did not name a buyer, a person close to the talks said USA was in serious
negotiations with Univision, the Spanish- language television company. The
acquisition would give Univision duopolies in seven markets, including New
York.
[SOURCE: New York Times (Online), AUTHOR: Geraldine Fabrikant]
(http://www.nytimes.com/2000/12/07/business/07PLAC.html)
(requires registration)

TELEVISION

ADVERTISING: COCKTAIL HOUR RETURNS TO TV
Issue: Advertising
The hard liquor industry, which has operated under a self-imposed radio and
television advertising ban since shortly after the repeal of Prohibition,
quietly dropped its own broadcast prohibition in 1996. Since then, with
little public notice, the nation's top distilled spirits companies have
increasingly turned to the airwaves to promote their products. While the
national television nelworks continue to ban liquor advertising, media
buyers have been getting on the air by buying advertising directly from
local station affiliates or cable system operators. There has yet to be a
public outcry about such advertising, but George Hacker, director of the
Alcohol Policies Project at the Center for Science in the Public Interest in
Washington, said that it lacks public support. According to a 1998 national
poll by Michigan State University, half the public favors banning liquor
commercials on television.
[SOURCE: New York Times (C1), AUTHOR: Patricia Winters Lauro]
(http://www.nytimes.com/2000/12/07/business/07ADCO.html)
(requires registration)

COVERAGE IS COSTLY -- BUT WHO'S COUNTING?
Issue: Journalism
Two months after Election Day, coverage of the 2000 presidential campaign
continues, and networks are feeling the financial pinch. "We've spent in the
millions of dollars, overall, in this extra month of election coverage,"
says Bill Wheatley, NBC News vice president. While the prolonged political
drama has been a boon to ratings, it has not translated into higher prices
for commercials. The good ratings coming at a time of weakening ad sales,
says Jack Myers, who publishes a media industry newsletter. "They can't
capitalize on it as much," he says. A report Monday in Daily Variety
estimated the cost of the presidential coverage since Election Day at $2
million for each network. News executives, however, say they have not
reached the point where current costs will hinder future coverage.
[SOURCE: USAToday (4A), AUTHOR: Martha T. Moore]
(http://www.usatoday.com/usatonline/20001207/2896271s.htm)

CONVERGENCE

AFTER 50 YEARS OF EFFORT, INTERACTIVE TV ARRIVES
Issue: Convergence
Interactive TV is supposed to be technology's next big thing but the concept
itself is hardly new. Attempts at interactive TV go back almost to the dawn
of commercial television. "Winky Dink and You," a kids' show about a little
blond cartoon boy and his adventures, is said to be the first interactive
TV, according to Edwin Brit Wyckoff. To interact with the show, viewers
bought a kit that included a piece of plastic to cover the TV screen and a
Magic Crayon, but there were technical problems during the development stage
of the show. Today, the same kinds of problems dog the advent of true
interactive television. When Warner Chairman, Gerald M. Levin unveiled the
Full Service Network in Orlando, Fla. in 1994, he promised that its 4,000
users could get VCR-like controls over movies, play interactive gin rummy
with other customers and order pizzas in between. Mr. Levin hailed the
network as "nothing short of miraculous." But the companies found it hard to
prove the value of interactive-TV services to consumers. Now, start-ups TiVo
Inc. and Replay TV Inc. allow consumers in this country to pause live TV and
record shows onto low-cost hard drives with the click of a button. Even more
ambitious ideas are on the drawing boards. AOL Chairman Steve Case said this
week that reinventing TV is one of the top goals of AOL Time Warner.
[SOURCE: Wall Street Journal (B1), AUTHOR: Jared Sandberg]
(http://interactive.wsj.com/articles/SB97613991783939931.htm)
(requires subscription)

WEB-VIDEO ISSUE IS A PAIN IN THE NET FOR OLYMPICS
Issue: Convergence
Adjusting from brick and mortar to the Internet hasn't been easy, at least
according to the International Olympic Committee and its broadcasting
partners. Since before this year's Summer Games in Sydney they have been
weathering a tempest incited by their decision to ban virtually all video
images of Olympic events from the Internet. The ban is meant to protect the
value of broadcasting rights that the IOC and its partners fear could be
jeopardized by online Olympic video clips. While the IOC don't want to
sacrifice the 3.7 billion television viewers for the 25 million visitors who
log on to their sites on the Net, many Net executives balk at the idea that
a few square inches of low-quality, online video could actually damage the
value of prime-time broadcasts of the Olympic Games. "I understand what the
advertising revenue means to them," says Peter Clifton, project leader for
the BBC Sport Online section of British Broadcasting Corp.'s Web site. "But
one downside to that is there are a whole range of ways you could spread the
Olympic spirit to all corners that are just withering on the vine." The BBC
itself is an Olympic broadcast-rights holder. "You can Web-cast and
broadcast without hurting either medium," contends Rick Gentile, a member of
the IOC's Radio and Television Committee.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Jeanette Borzo]
(http://interactive.wsj.com/articles/SB976114642488494810.htm)
(requires subscription)

TELEPHONY

No 10-DIGIT DIALING FOR LOCAL CALLS
Issue: Telephony
Today the FCC is expected to not order the use of the three-digit area code
when making local calls, a move that could have made more than a billion new
telephone numbers available. Instead, the FCC is expected to consider
proposals to ensure telephone carriers are efficiently using the numbers
they already have and whether to charge companies a fee to obtain more
numbers. While a demand for new telephone numbers has increased with the
spread of mobile phones and second home lines for Internet access, the FCC
will decline ordering 10-digit dialing at Thursday's open meeting. Models
have shown the North American Numbering Plan could run out of numbers
between 2006 and 2012 if no action is taken, but capacity could be increased
by 25 percent if 10-digit dialing became a reality, according to the FCC
officials. Despite this, the FCC will weigh whether there should be a
threshold that carriers must cross in terms of utilizing the numbers they
have been allocated before they can seek more allocations of telephone
numbers.
[SOURCE: New York Times, AUTHOR: Reuters Wire]
(http://www.nytimes.com/reuters/technology/tech-telecoms-numbers.html)

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

Communications-related Headlines for 12/06/00

INTERNET
Altavista Ends Free Net Access For A Million Users (SJM)

INTERNATIONAL
China Telecom Prepares IPO Plans To Get Head Start on Competition
(WSJ)
Europeans Free Phone Market for Local and Internet Service (NYT)

MERGERS
Shareholders Back Vivendi Merger Plan (WP)
U.S. Approval Near, Case Says (WP)

PRIVACY
Wireless-World Privacy Pitted Against Free Speech (USA)

INTERNET

INTERNATIONAL

EUROPEANS FREE PHONE MARKET FOR LOCAL AND INTERNET SERVICE
Issue: Internet/International
European industry ministers approved a regulation today intended to create
competition among local telephone networks. The move is intended to pave the
way for cheaper, quicker Internet access for homes and businesses in
European Union countries. This is "a historic decision," said Erkki
Liikanen, commissioner for enterprise and the information society. The final
mile of phone lines to homes and offices is the last remaining segment of
the European telecommunications industry to be opened to competition. Simon
Hampton, public affairs director at AOL Europe, said that the new
regulations will mainly affect businesses and will not revolutionize the
residential market. Per Haugaard, spokesman for the European Commission,
insists that the new regulation will benefit home users. "The regulation
will bring down local phone charges, which we think will stimulate dial-up
to the Internet." Only about 30 percent of households in European Union
nations are now connected to the Internet.
[SOURCE: New York Times (C4), AUTHOR: Paul Meller]
(http://www.nytimes.com/2000/12/06/technology/06PHON.html)
(requires registration)
MERGERS

SHAREHOLDERS BACK VIVENDI MERGER PLAN
Issue: Mergers
Shareholders of both companies yesterday approved merger plans of French
water utility Vivendi and Canadian liquor conglomerate Seagram. Vivendi has
branched into media and telecommunication services, while Seagram owns the
Universal music and film studios. The merger of the two companies would
create a media powerhouse capable of rivaling a combined America Online and
Time Warner. Behind the merger is a plan to transmit Universal content over
European television, telephone and computer lines. "Who would have thought
we would leapfrog giants like Disney and Rupert Murdoch's News Corp.?"
Jean-Marie Messier, Vivendi chairman asked an estimated 7,000 guests who
showed up for the announcement of shareholder approval. "Vivendi Universal
will show that you can be a French group and a global company."
[SOURCE: Washington Post (E03), AUTHOR: William Drzdiak]
(http://washingtonpost.com/wp-dyn/articles/A30208-2000Dec5.html)

U.S. APPROVAL NEAR, CASE SAYS
Issue: Mergers
AOL CEO Steve Case said he expects the company to soon win FTC approval of
its takeover of Time Warner. "I'm here to tell you we're in the home
stretch," Case said in a speech before investors, analysts and the media at
the UBS Warburg Media Conference in New York. Case said he expects the deal
to close by early January, and that he expects the merger to be complete
before the Jan. 20 presidential inauguration. Case also indicated that after
the FTC acts, he expects to move "expeditiously" with the FCC, the other
U.S. regulatory agency that is reviewing the media merger. The FCC has said
that it would not act on the merger until after the FTC had finished with
its review.
[SOURCE: Washington Post (E01), AUTHOR Alec Klein]
(http://www.washingtonpost.com/wp-dyn/articles/A28710-2000Dec5.html)

PRIVACY

WIRELESS-WORLD PRIVACY PITTED AGAINST FREE SPEECH
Issue: Privacy
A divided Supreme Court heard arguments Tuesday over whether the media can
be sued for broadcasting private conversations that someone else illegally
intercepted. The case arises from an illegal tape made of a cellular phone
call between two Pennsylvania teachers' union officials during contract
negotiations with a school board. In the dispute, the anonymously made tape
was passed on to a local talk-show host, Frederick Vopper, who aired it. The
union officials sued Vopper under a civil liability provision of federal law
prohibiting anyone from disclosing the contents of a communication known to
be illegally intercepted. A federal appeals court, however, had rejected the
case, saying the law violates the First Amendment when used against those
who had no role in the interception. News organizations are closely
following the case, which could have broad ramifications for journalists.

[SOURCE: USAToday (12A), AUTHOR: Joan Biskupic]
(http://www.usatoday.com/usatonline/20001206/2891966s.htm)

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

COMMUNICATIONS-RELATED HEADLINES for December 5, 2000

MERGERS
Microsoft Tries to Lob Monkey Wrench
Into AOL-Time Warner Deal (WSJ)

PRIVACY
Internet Firm Acts to Ease Sharing of Personal Data (WP)

INTERNET
FCC Hears Open-Access Debate (NYT)
Forcing Filters on Schools (WP)

NONPROFITS & TECHNOLOGY
Dot-Commers Go Where Profits Truly Don't Matter (WSJ)

INTERNATIONAL
Mexico Moves to Bar Televisa's Radio Deal (NYT)
Building New Crossroads for the Information Age (FCC)

MERGERS

MICROSOFT TRIES TO LOB MONKEY WRENCH INTO AOL-TIME WARNER DEAL
Issue: Mergers
Microsoft is raising questions with antitrust enforcers about the effect the
AOL-Time Warner merger on high-speed Internet access for consumers. The
issues raised by the software company could complicate the deal's approval
by the Federal Trade Commission. The FTC has already won concessions from
AOL and Time Warner on high-speed Internet access, notably through a Time
Warner deal struck last month with rival EarthLink. The FTC is reviewing
whether that deal went far enough. Now Microsoft is claiming that in similar
cable access discussions, Time Warner is refusing to negotiate further,
preferring to deal with a weaker competitor like EarthLink. Microsoft is
also claiming that Time Warner, to ensure real competition, should offer
better terms than those in the EarthLink deal.
[SOURCE: Wall Street Journal (B01), AUTHOR: Wilke & Angwin]
(http://interactive.wsj.com/articles/SB975973370801093522.htm)
(registration required)

PRIVACY

INTERNET FIRM ACTS TO EASE SHARING OF PERSONAL DATA
Issue: Privacy
Several dozen e-commerce specialists are creating a system designed improve
their ability to share names, identification numbers and behavioral data
about individual consumers. The group, which includes IBM, MicroStrategy and
First Union, hopes its Customer Profile Exchange standard aid in the
transfer of information across different business systems. Privacy
advocates, on the other hand are alarmed at the prospect, as the
difficulties that businesses encounter in exchanging information has
actually aided the protection of customer data. Proponents contend that
CPExchange will bolster privacy, because it will allow companies to attach
to every record details about how a customer wants personal information
gathered and shared. Jason Catlett, a privacy consultant who has advised the
standards group, said few individuals would have any idea how to tell
companies to limit the use of their data. He said companies will only have
to follow the promises they make, and those promises may do nothing to
protect an individual. "You could say they are building a machine gun with a
safety catch that no one will use," said Catlett, president of Junkbusters
Corp.
[SOURCE: Washington Post (E01), AUTHOR: Robert O'Harrow Jr]
(http://washingtonpost.com/wp-dyn/articles/A23676-2000Dec4.html)

INTERNET

FCC HEARS OPEN-ACCESS DEBATE
Issue: Broadband
Friday marked the opening day in the cable open access debate being
conducted by the FCC. A coalition of consumer groups--Consumers Union,
Consumer Federation of America, Center for Media Education, and Media Access
Project--in a joint filing said that the cable companies that are in the
position to violate the First Amendment rights of consumers by restricting
choice in high-speed providers and through technology that can favor the
transmission of one provider's content over that of another. However, the
National Cable Television Association (NCTA) filed a report stating, "Under
no circumstances is (cable modem service) a telecommunications service."
NCTA argued that under the law, a telecommunications service offered the
public a transport, such as carrying a phone call. Cable companies, by
contrast, enter private carriage agreements with ISPs for cable modem
service, NCTA said. Open-access advocates want consumers to have a choice
and are calling on the federal government to force cable operators to allow
other ISPs to operate on their networks. "Any further delay in establishing
and enforcing a national open-access policy will deprive consumers in this
fast-moving market of the basic choice of services and content that are the
hallmark of today's Internet," wrote Kristan Van Hook, co-director of the
OpenNet coalition, a group of nearly 1,000 ISPs and related companies.
However, there is no guarantee that an FCC inquiry will lead to a process
for drafting new regulations. And if Texas Gov. George W. Bush becomes the
next president, 2001 could see a new FCC with a new chairman and senior
staff. Bush campaigned on a platform of deregulation and market forces in
the new economy, exactly the arguments being made by open-access opponents,
which wouldn't bode well for those who hope this inquiry is the first step
toward opening up cable networks.
[Source: New York Times (online), Author: Patrick Ross]
(http://www.nytimes.com/cnet/CNET_0_4_3957311_00.html)
(registration required)
See Also:
MEDIA ACCESS PROJECT COMMENTS ON FCC'S OPEN ACCESS NOI
Issue: Broadband
On December 1, 2000 Consumers Union, Consumer Federation of America, Center
for Media Education, and Media Access Project filed comments in the FCC's
Inquiry Concerning High-Speed Access to the Internet Over Cable and Other
Facilities, CS Docket #00-185.
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/filings/index.html#oacomm)

FORCING FILTERS ON SCHOOLS
Issue: Ed-Tech
[Editorial] Part of Congress's unfinished business is a measure that could
impede Internet access for schools and libraries receiving support from the
"e-rate." A stalled Education Department appropriations bill would require
schools that take advantage of the government-discounted rates for Internet
connections to certify that they use some kind of software to block
obscenity, child pornography and "material harmful to minors." But Internet
"filtering" technologies are an unreliable solution that often block far
more or far less than intended. Currently, no product is capable of
precisely blocking the materials targeted by the legislation. Many school
districts have decided against using filters, preferring some form of
Internet-use policy combined with disciplinary measures. The legislation
puts Congress in the position of severely limiting the local autonomy of
school districts that it otherwise claims to support.
[SOURCE: Washington Post 12/4 (A26), AUTHOR: Editorial]
(http://www.washingtonpost.com/wp-dyn/articles/A20069-2000Dec3.html)

NONPROFITS & TECHNOLOGY

DOT-COMMERS GO WHERE PROFITS TRULY DON'T MATTER
Issue: Internet & Society
Managers and professionals are leaving their for-profit dot-com jobs for
more personally rewarding -- but lower-salaried -- spots in the nonprofit
world. Those that are fleeing are split between the lucky, who have already
made enough money and the disenchanted, who are walking away from stock
options that may never pay off. With the apparent end of the Internet gold
rush, "nonprofit organizations will definitely benefit," predicts Gary
Kaplan, president of Gary Kaplan & Associates, a Pasadena, Calif., search
firm. In some cases, dot-commers' Internet experience is being put to good
use immediately. For many, community-oriented work offers a respite from the
constant focus on stock prices and profitability they experienced at other
Internet startups. But the nonprofit sector has risks of its own: uncertain
funding makes year-to-year survival a challenge for many organizations.
That's partly why not every nonprofit jumps at the chance to hire restless
Internet types. Jay Backstrand, chief executive of ImpactOnline Inc., which
owns VolunteerMatch.org (www.volunteermatch.org), scrutinizes candidates
carefully to ensure they're willing to work hard and will fit in well at his
organization. "I don't want those people who are like, 'I'm burned out, my
options are underwater. I want to hire people who truly believe in what
we're doing."
[SOURCE: Wall Street Journal (B01), AUTHOR: Kemba J. Dunham]
(http://interactive.wsj.com/articles/SB975972369625599498.htm)
(registration required)

INTERNATIONAL

MEXICO MOVES TO BAR TELEVISA'S RADIO DEAL
Issue: Antitrust/International
Mexican antitrust authorities have plans to block the world's largest
Spanish-language broadcasting company, Televisa, from completing a merger
that would create Mexico's largest radio company. The Federal Antitrust
Commission ruled against Televisa in its attempt to buy a 27.8 percent stake
of Grupo Acir Communications, which would have given the media company 194
radio stations in addition to Televisa's 1,112 television stations. With
almost complete nationwide coverage, the commission was concerned that the
merger would push smaller competitors out of the advertising market.
[SOURCE: New York Times, AUTHOR: Graham Gori]
(http://www.nytimes.com/2000/12/05/business/05TELE.html)
(registration required)

BUILDING NEW CROSSROADS FOR THE INFORMATION AGE
Issue: International
[Speech] Chairman of the U.S. Federal Communications Commission, William E.
Kennard, spoke before the Budapest Business Journal Conference Budapest,
Hungary about encouraging telecommunication competition and universal access
to telecommunications services.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/2000/spwek027.html)

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

Communications-related Headlines for 12/4/2000

TELEPHONY
FCC's Auction of Wireless Spectrum Draws Less Heat Than Expected
(WSJ)
FCC Is Expected to Begin Phasing Out Fees Between Local Telephone
Carriers (WSJ)

INTERNET
Vulcan to Put $100 Million Into Oxygen Cable-Web (NYT)
The Votes Are In: Net Not Crucial To Election (USA)

JOURNALISM
A 'Tank' Rolls Through CNN Before Merger (NYT)

TELEPHONY

FCC IS EXPECTED TO BEGIN PHASING OUT FEES BETWEEN LOCAL TELEPHONE CARRIERS
Issue: Telephony
The Federal Communications Commission is planning to approve a plan to
gradually eliminate the billions of dollars of fees local telephone
companies pay each other to complete calls. This would be a major boost to
the Baby Bells. FCC Chairman William Kennard is circulating among the other
four commissioners a plan to phase out the fees over three years. The
phaseout plan would temporarily cap the number of calls one phone company
must pay when another completes calls from the first company's customers.
After the phaseout period, the fees would be eliminated. Baby Bells would
prefer an immediate elimination of the fees. "We want to transition to a
better regime environment for handling this traffic that takes into account
... huge growth in ISP-bound traffic," Mr. Kennard said. He said he didn't
want to eliminate the fees right away, because it could throw the
competitive local phone industry into turmoil.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: JILL CARROLL]
(http://interactive.wsj.com/articles/SB975834866183298960.htm)

FCC'S AUCTION OF WIRELESS SPECTRUM DRAWS LESS HEAT THAN EXPECTED
Issue: Wireless
An upcoming federal auction of wireless spectrum isn't likely to turn into
the intense bidding war that investors feared, because most of the big U.S.
wireless carriers have been swapping licenses instead to fill in the gaps in
their networks. With an explosion of wireless communications under way in
the U.S., the Federal Communications Commission has been scrambling to find
additional spectrum. According to documents disclosed Friday by the FCC for
the auction to be held Dec. 12, 87 bidders have made a total of only $1.8
billion in so-called upfront payments. It appears that while the auction
could bring in the largest amount of money ever for a FCC auction, it isn't
expected to reach the astronomical levels of recent European auctions, which
have ranged from $30- 40 billion in the UK and Germany. Shortly after those
auctions, the stocks of the participants dropped drastically on concerns
they wouldn't be able to make a return on their hefty investments. The
European experience spooked U.S. wireless investors. [SOURCE: Wall Street
Journal (B14), AUTHOR: Nicole Harris And Jill Carroll]
(http://interactive.wsj.com/articles/SB975882138701262278.htm)

INTERNET

VULCAN TO PUT $100 MILLION INTO OXYGEN CABLE-WEB
Issue: Internet
Oxygen Media, the heavily publicized cable television and Internet business
has received a commitment of $100 million from Vulcan Ventures. Oxygen was
fighting for its life, but may now turn a profit with this financial boost.
At the same time Oxygen will announce it is scaling back its Internet
business, according to its chairman, Geraldine Laybourne. Taken together,
the new round of financial support and the budget cutting on the Internet
side will "get us to a point of security," Ms. Laybourne said. Oxygen has
struggled to emerge from clouds of doubts about its prospects since it began
operations with enormous fanfare last February. Oxygen began with perhaps
the highest visibility of any recent media startup, both because of the
prominence of Ms. Laybourne, and because of its roster of other investors,
included the talk show host Oprah Winfrey; the leaders of
Carsey-Werner-Mandabach, one of television's most successful production
companies; America Online; the luxury goods conglomerate LVMH M

Communications-related Headlines for 12/1/2000

INTERNET
Net Brings Opportunity, Hazards For Intellectual-Property Owners
(WSJ)
Buyers Gain Online Rights In Europe (NYT)

MEDIA & SOCIETY
The Media And HIV/AIDS: What Should We Do? (MediaChannel)
Don't Blame Movies (WP) (Op-Ed)

INTERNATIONAL
Mexico Mobile-Phone Subscribers Eclipse the Number of Fixed Lines
(WSJ)

TELEVISION/CABLE
TV, Net Services Get OK To Share Airwaves With Satellite Firms (USA)
Comcast Upbeat on Talks (WP)

INTERNET

NET BRINGS OPPORTUNITY, HAZARDS FOR INTELLECTUAL-PROPERTY OWNERS
Issue: Intellectual Property
While the Internet has opened up new business opportunities for owners of
intellectual property, it has also spawned numerous legal issues by making
this property easier to disseminate (think Napster). In a recent interview
with WSJ.com, Christine Hearst Schwarzman, chairman of Ipnetwork, a New
York-based intellectual-property-management company, talked about how the
Internet can make licensing and keeping track of intellectual property more
efficient -- and the legal challenges the information superhighway brings.
According to Ms. Schwarzman, the direction of intellectual property online
is toward helping business solve problems on the Web. Ms. Schwarzman says
that the Web is a great way to manage intellectual property, and people are
increasingly turning to the Web for such help. The management of
intellectual property has been facilitated using various technology and
Web-related tools. Using technology to organize businesses makes people more
productive, claims Schwarzman. However, she cautions that managing
intellectual property online will be slow to grow. "It's not realistic to
think that it will take off like a rocket."
[SOURCE: Wall Street Journal (WSJ.com), AUTHOR: Jim Chairusmi]
(http://interactive.wsj.com/articles/SB974781965536399507.htm)
(requires subscription)

BUYERS GAIN ONLINE RIGHTS IN EUROPE
Issue: E-Commerce
The European Union has passed rules that would allow consumers to sue in
courts of their own country an online retailer based in another union
country. European officials argue that the consumer right is essential to
help get e-commerce off the ground in Europe. The theory is that consumer
confidence will be bolstered by the certainty that they have legal recourse
in the courts of their own country. Industry representatives argue that the
regulation, which takes effect in March, will create legal uncertainty for
small companies using the Internet. "For large companies it isn't a problem,
because they have offices and lawyers in all E.U. countries," said Wim Mijs,
vice president for European Union affairs at ABN Amro, the Dutch banking
giant. Smaller online companies, however, would be burdened by extra legal
and insurance costs.
[SOURCE: New York Times (W1), AUTHOR: Paul Meller]
(http://www.nytimes.com/2000/12/01/technology/01NET.html)

MEDIA & SOCIETY

Special Report: AIDS & The Media
Issue: Media & Society
The MediaChannel has assembled articles and links that address the role of
journalists and the media in combating the public health crisis of our time:
the AIDS epidemic. Included is an original article by MediaChannel News
Dissector Danny Schechter, which asks: What's gone wrong in the media's
coverage of the AIDS crisis, and how can it be fixed?
[SOURCE: Center For Media Education]
(http://www.mediachannel.org/originals/aids.shtml)

DON'T BLAME MOVIES
Issue: Media & Society
[Op-Ed] Last week, the Federal Trade Commission announced it had decided
that the First Amendment prevents it from suing Hollywood for aggressively
marketing violence to children. Mr. Jenner is critical of the of recent
government efforts to blame society's woes on the entertainment industry. He
points out that the Supreme Court has made it clear that Congress cannot
censor movies, CDs, MP3 files, video games or comic books unless they are
constitutionally obscene. Violence, he explains, is not considered "obscene"
in the constitutional sense. Jenner says that the First Amendment would be
violated if the FTC attempted to regulate simply on the grounds that violent
movies or video games or music lyrics are "marketed" to children. "That's
the problem when politicians and bureaucrats start toying with the First
Amendment. Once the genie is out of the bottle, he doesn't want to return,"
concludes Jenner.
[SOURCE: Washington Post (A35), AUTHOR: Albert E. Jenner Jr. (professor of
law at the University of Illinois and a visiting senior fellow at the Cato
Institute)]
(http://washingtonpost.com/wp-dyn/articles/A8155-2000Nov30.html)

INTERNATIONAL

MEXICO MOBILE-PHONE SUBSCRIBERS ECLIPSE THE NUMBER OF FIXED LINES
Issue: Wireless
Mobile-phone subscribers have eclipsed the number of fixed lines in Mexico,
the Federal Telecommunications Commission said. There are 12.2 million
mobile subscribers in September and 12 million fixed lines, in a population
of 98 million people. Mobile-phone service soared after Mexico introduced a
billing system in May 1999 under which subscribers pay only for calls they
make, not those that they receive. Subscriber growth peaked at a 130.8%
annual clip in 1999. Mexico is expected to end the year with 13.1 million
mobile subscribers, or 13.3 for every 100 people, and 12.3 million fixed
lines, or 12.5 lines for every 100 people. Mexico joins Venezuela and
Paraguay as the first countries in Latin America with more mobile
subscribers than fixed lines. Brazil and Peru are expected to follow soon.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB975615673746966174.htm)
(requires subscription)

TELEVISION/CABLE

TV, NET SERVICES GET OK TO SHARE AIRWAVES WITH SATELLITE FIRMS
Issue: Broadcasting
The Federal Communications Commission has decided to allow new TV and
Internet services to share a part of the airwaves now used by direct
broadcast satellite (DBS) companies. On Thursday the FCC announced the its
intent to seek comments on technical and service issues for the sharing of
the frequency band now used by DirecTV and EchoStar. It remains unclear
which players will get licenses and whether they'll be given the spectrum or
have to bid for it in an auction. Northpoint Technology, a land-based
wireless upstart seeking to offer cable, broadcast and Internet access, and
Pegasus Communications, a reseller of DirecTV service are both jockeying to
share the DBS frequency.
[SOURCE: USAToday (7B), AUTHOR: Becky Yerak]
(http://www.usatoday.com/usatonline/20001201/2882303s.htm)

COMCAST UPBEAT ON TALKS
Issue: Cable
Yesterday, Comcast said that it is close to reaching an agreement with Walt
Disney over their dispute on cable programming. Disney has threatened to
rescind Comcast's right to carry local ABC programming and ESPN sports
programming in several major cities unless Comcast provides wider
distribution of the Disney and Toon Disney cable channels. "This is going to
be over pretty shortly," said Comcast Executive Vice President Dave Watson.
"We are very focused to make sure that all the programming our customers
want will stay on." Before the agreement is reached, however, Comcast will
have to settle on how much it will pay for rights to air ESPN. It also has
not decided whether to let Disney increase its minority stake in the E!
Entertainment Television cable network controlled by Comcast. Sources close
to the negotiations said Disney wants more management over the E! channel
and is considering doubling the monthly fees Comcast pays for ESPN. Disney's
interest in owning a stake in E! stems from government concerns about its
content, such as the Howard Stern show. The threat of canceling ESPN
programming is a calculated one: Disney officials believe that revoking ESPN
would anger Comcast's 8 million subscribers without causing the political
uproar that comes from blacking out a major broadcast network.
[SOURCE: Washington Post (E04), AUTHOR: Christopher Stern]
(http://washingtonpost.com/wp-dyn/articles/A8100-2000Nov30.html)

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

Communications-related Headlines for 12/1/2000

INTERNET
Net Brings Opportunity, Hazards For Intellectual-Property Owners
(WSJ)
Buyers Gain Online Rights In Europe (NYT)

MEDIA & SOCIETY
The Media And HIV/AIDS: What Should We Do? (MediaChannel)
Don't Blame Movies (WP) (Op-Ed)

INTERNATIONAL
Mexico Mobile-Phone Subscribers Eclipse the Number of Fixed Lines
(WSJ)

TELEVISION/CABLE
TV, Net Services Get OK To Share Airwaves With Satellite Firms (USA)
Comcast Upbeat on Talks (WP)

INTERNET

NET BRINGS OPPORTUNITY, HAZARDS FOR INTELLECTUAL-PROPERTY OWNERS
Issue: Intellectual Property
While the Internet has opened up new business opportunities for owners of
intellectual property, it has also spawned numerous legal issues by making
this property easier to disseminate (think Napster). In a recent interview
with WSJ.com, Christine Hearst Schwarzman, chairman of Ipnetwork, a New
York-based intellectual-property-management company, talked about how the
Internet can make licensing and keeping track of intellectual property more
efficient -- and the legal challenges the information superhighway brings.
According to Ms. Schwarzman, the direction of intellectual property online
is toward helping business solve problems on the Web. Ms. Schwarzman says
that the Web is a great way to manage intellectual property, and people are
increasingly turning to the Web for such help. The management of
intellectual property has been facilitated using various technology and
Web-related tools. Using technology to organize businesses makes people more
productive, claims Schwarzman. However, she cautions that managing
intellectual property online will be slow to grow. "It's not realistic to
think that it will take off like a rocket."
[SOURCE: Wall Street Journal (WSJ.com), AUTHOR: Jim Chairusmi]
(http://interactive.wsj.com/articles/SB974781965536399507.htm)
(requires subscription)

BUYERS GAIN ONLINE RIGHTS IN EUROPE
Issue: E-Commerce
The European Union has passed rules that would allow consumers to sue in
courts of their own country an online retailer based in another union
country. European officials argue that the consumer right is essential to
help get e-commerce off the ground in Europe. The theory is that consumer
confidence will be bolstered by the certainty that they have legal recourse
in the courts of their own country. Industry representatives argue that the
regulation, which takes effect in March, will create legal uncertainty for
small companies using the Internet. "For large companies it isn't a problem,
because they have offices and lawyers in all E.U. countries," said Wim Mijs,
vice president for European Union affairs at ABN Amro, the Dutch banking
giant. Smaller online companies, however, would be burdened by extra legal
and insurance costs.
[SOURCE: New York Times (W1), AUTHOR: Paul Meller]
(http://www.nytimes.com/2000/12/01/technology/01NET.html)

MEDIA & SOCIETY

Special Report: AIDS & The Media
Issue: Media & Society
The MediaChannel has assembled articles and links that address the role of
journalists and the media in combating the public health crisis of our time:
the AIDS epidemic. Included is an original article by MediaChannel News
Dissector Danny Schechter, which asks: What's gone wrong in the media's
coverage of the AIDS crisis, and how can it be fixed?
[SOURCE: Center For Media Education]
(http://www.mediachannel.org/originals/aids.shtml)

DON'T BLAME MOVIES
Issue: Media & Society
[Op-Ed] Last week, the Federal Trade Commission announced it had decided
that the First Amendment prevents it from suing Hollywood for aggressively
marketing violence to children. Mr. Jenner is critical of the of recent
government efforts to blame society's woes on the entertainment industry. He
points out that the Supreme Court has made it clear that Congress cannot
censor movies, CDs, MP3 files, video games or comic books unless they are
constitutionally obscene. Violence, he explains, is not considered "obscene"
in the constitutional sense. Jenner says that the First Amendment would be
violated if the FTC attempted to regulate simply on the grounds that violent
movies or video games or music lyrics are "marketed" to children. "That's
the problem when politicians and bureaucrats start toying with the First
Amendment. Once the genie is out of the bottle, he doesn't want to return,"
concludes Jenner.
[SOURCE: Washington Post (A35), AUTHOR: Albert E. Jenner Jr. (professor of
law at the University of Illinois and a visiting senior fellow at the Cato
Institute)]
(http://washingtonpost.com/wp-dyn/articles/A8155-2000Nov30.html)

INTERNATIONAL

MEXICO MOBILE-PHONE SUBSCRIBERS ECLIPSE THE NUMBER OF FIXED LINES
Issue: Wireless
Mobile-phone subscribers have eclipsed the number of fixed lines in Mexico,
the Federal Telecommunications Commission said. There are 12.2 million
mobile subscribers in September and 12 million fixed lines, in a population
of 98 million people. Mobile-phone service soared after Mexico introduced a
billing system in May 1999 under which subscribers pay only for calls they
make, not those that they receive. Subscriber growth peaked at a 130.8%
annual clip in 1999. Mexico is expected to end the year with 13.1 million
mobile subscribers, or 13.3 for every 100 people, and 12.3 million fixed
lines, or 12.5 lines for every 100 people. Mexico joins Venezuela and
Paraguay as the first countries in Latin America with more mobile
subscribers than fixed lines. Brazil and Peru are expected to follow soon.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB975615673746966174.htm)
(requires subscription)

TELEVISION/CABLE

TV, NET SERVICES GET OK TO SHARE AIRWAVES WITH SATELLITE FIRMS
Issue: Broadcasting
The Federal Communications Commission has decided to allow new TV and
Internet services to share a part of the airwaves now used by direct
broadcast satellite (DBS) companies. On Thursday the FCC announced the its
intent to seek comments on technical and service issues for the sharing of
the frequency band now used by DirecTV and EchoStar. It remains unclear
which players will get licenses and whether they'll be given the spectrum or
have to bid for it in an auction. Northpoint Technology, a land-based
wireless upstart seeking to offer cable, broadcast and Internet access, and
Pegasus Communications, a reseller of DirecTV service are both jockeying to
share the DBS frequency.
[SOURCE: USAToday (7B), AUTHOR: Becky Yerak]
(http://www.usatoday.com/usatonline/20001201/2882303s.htm)

COMCAST UPBEAT ON TALKS
Issue: Cable
Yesterday, Comcast said that it is close to reaching an agreement with Walt
Disney over their dispute on cable programming. Disney has threatened to
rescind Comcast's right to carry local ABC programming and ESPN sports
programming in several major cities unless Comcast provides wider
distribution of the Disney and Toon Disney cable channels. "This is going to
be over pretty shortly," said Comcast Executive Vice President Dave Watson.
"We are very focused to make sure that all the programming our customers
want will stay on." Before the agreement is reached, however, Comcast will
have to settle on how much it will pay for rights to air ESPN. It also has
not decided whether to let Disney increase its minority stake in the E!
Entertainment Television cable network controlled by Comcast. Sources close
to the negotiations said Disney wants more management over the E! channel
and is considering doubling the monthly fees Comcast pays for ESPN. Disney's
interest in owning a stake in E! stems from government concerns about its
content, such as the Howard Stern show. The threat of canceling ESPN
programming is a calculated one: Disney officials believe that revoking ESPN
would anger Comcast's 8 million subscribers without causing the political
uproar that comes from blacking out a major broadcast network.
[SOURCE: Washington Post (E04), AUTHOR: Christopher Stern]
(http://washingtonpost.com/wp-dyn/articles/A8100-2000Nov30.html)

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

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