July 2002

DIGITAL DIVIDE
Computer for the Poor Stymied
Divide Is More Than Digital
Reconceptualizing the Digital Divide

COMPETITION
FCC Could Let a Bell Buy WorldCom
Cable, Internet Access Rates Prompt Re-Regulation Moves

CENSORSHIP
Hackers Target Web Censorship
China Adds More Web Regulations

DIGITAL DIVIDE

COMPUTER FOR THE POOR STYMIED
More than a year ago, the Simputer was promised as a cheap, handheld
computer that would bring technology to the world's poor. But the Simputer
launch remains in perpetual delay, pending investor and customer
commitments. "Investors see risk in investing in a new product like this,"
said Swami Manohar of the Indian Institute of Science. "Nobody has built a
computer for the rural and poor people. Also, there is no license for the
hardware or software. That is probably the reason for their hesitation." The
Simputer was developed of the Open General License system to reduce costs,
but the fact that applications in the Simputer are not copyrighted may be
hampering its development. In the meantime, Manohar, who is also founder of
one of two companies licenced to make the device, says that his company will
install several Simputer units in India to try and kickstart consumer
interest and demand.
[SOURCE: The Washington Post, AUTHOR: S. Srinivasan, Associated Press]
http://www.washingtonpost.com/wp-dyn/articles/A61600-2002Jul12.html)

DIVIDE IS MORE THAN DIGITAL
In 1993, MIT Media Lab and the Computer Museum (now a part of Boston's
Museum of Science), opened the first Computer Clubhouse, as a way to teach
basic computer skills to students in underprivileged neighborhoods. The
Computer Clubhouse, sponsored by Intel, has since expanded to 50 locations
across the United States and internationally. Unfortunately, having the
necessary technical knowledge is not all these young people need to achieve
their professional goals. Gail Breslow, who oversees the network of Computer
Clubhouses, acknowledged that it is not uncommon for clubhouse members to be
underestimated, in part because of biases people have about children who
come from poor or troubled backgrounds. "I get frustrated. There a lot of
older members who have trouble getting a job," said Breslow, who also noted
that many students are not privy to good information on how to achieve their
career goals.
[SOURCE: Wired, AUTHOR: Dustin Goot]
(http://www.wired.com/news/business/0,1367,53849,00.html)

RECONCEPTUALIZING THE DIGITAL DIVIDE
A paper by Mark Warschauer appearing in the most recent issue of First
Monday, a peer-reviewed journal about the Internet, examines the concept of
a digital divide by analyzing community technology projects and models of
technology access. Warschauer proposes a framework of technology for social
inclusion that focuses on effective integration of computers and technology
into communities and institutions, instead of just the provision of access.
[SOURCE: First Monday, AUTHOR: Mark Warschauer]
(http://www.firstmonday.dk/issues/issue7_7/warschauer/)

COMPETITION

FCC COULD LET A BELL BUY WORLDCOM
Federal Communications Commission Chairman Michael Powell declared the
telecommunications industry in a state of "utter crisis," and suggested his
agency might allow a Baby Bell to take over WorldCom. The merger of a large
regional phone carrier and the nation's second-largest long-distance
company, a combination once seen as unthinkable, would reverse the FCC's
position on such deals. It also could lead to further consolidation as the
other Bells scrambled to acquire AT&T and Sprint Corp. as a way of keeping
pace. FCC Chairman Michael Powell said the industry's battered, debt-ridden
condition now leaves regulators little choice but to consider such options,
especially if the alternatives would disrupt phone and data service to
WorldCom's 20 million customers.
[SOURCE: Wall Street Journal, AUTHOR: Yochi J. Dreazen]
(http://online.wsj.com/article/0,,SB1026696580457716480,00.html?mod=technolo
gy)
(requires subscription)

CABLE, Internet ACCESS RATES PROMPT RE-REGULATION MOVES
Increases in cable rates are prompting consumer advocates to try and reverse
the deregulation of the cable industry. Some members of Congress are also
calling for action. The cable television industry has had a back and forth
relationship with regulation over the years, finally winning deregulation
again in 1996. But the most recent FCC reports on cable prices show that
cable rates between July 2000 and July 2001 rose at twice the inflation
rate. Senator John McCain has found the increases alarming enough to request
the General Accounting Office to investigate. "Consumers have a right to
know why cable rates continue to climb faster than the rate of inflation,"
he said. Jeff Chester, executive director of the Center for Digital
Democracy, noted that a Consumer Reports study of cable television,
airlines, banking, telephone and electric service found cable television to
be "the most monopolistic of the industries we evaluated" and said rates
have "skyrocketed under deregulation."
[SOURCE: The Washington Post, AUTHOR: Bill Bergstrom]
(http://www.washingtonpost.com/wp-dyn/articles/A62655-2002Jul12.html)

CENSORSHIP

CHINA ADDS MORE WEB REGULATIONS
The Chinese government has announced new regulations to increase monitoring
and control over text and audio-visual material published on the Internet.
The regulations, effective August 1, will require Web portals and other
Internet publishers to follow the new rules or face unspecified punishments.
Beijing's new regulations will limit the number and structure of Web
publishers. Chinese newspapers reported that the rules apply to formal
publishers on the Web of books, newspapers, periodicals, audio-visual
products and edited works of literature, art, natural or social sciences and
technical engineering. The new rules closely follow an announcement by a
group of hackers that they plan on offering free software to bypass Internet
censorship.
[SOURCE: CNET, AUTHOR: Reuters]
(http://news.cnet.com/investor/news/newsitem/0-9900-1028-20140813-0.html?tag
=ats)

HACKERS TARGET WEB CENSORSHIP
A group of technology experts have produced two programs that will help
people in highly restrictive countries bypass traditional web censorship
systems. Both programs are the work of a group of hackers calling itself
Hactivismo. The first program, called Camera Shy, was unveiled in New York
this weekend. Camera Shy allows people to hide messages inside images. The
second program, still in development, has potential for far wider effects.
Named Six/Four, in honor of the date of the Tiananmen Square massacre, the
software works like peer-to-peer systems that let users share material.
Six/Four allows users to build a virtual network that should be invisible to
the firewalls and filtering systems used by many regimes to block access to
parts of the web they consider objectionable. Six/Four is due to be released
in late 2003.
[SOURCE: BBC News]
(http://news.bbc.co.uk/hi/english/sci/tech/newsid_2129000/2129390.stm)

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DIGITAL DIVIDE
Report Disputes Bush Approach to Bridging 'Digital Divide'
Computer Lab Brings Tech Access to Low-Income Neighborhood

INTERNET
ACLU Warns of Threat to Online Free Speech From Cable Monopolies
Groups Vow Renewed Cable ISP Open-Access Fight
Is This Lights Out For The Internet?

DIGITAL DIVIDE

REPORT DISPUTES BUSH APPROACH TO BRIDGING 'DIGITAL DIVIDE'
Earlier this year, after announcing that the "digital divide" was narrowing,
the Bush administration proposed eliminating two major federal programs that
were intended to help bridge the divide. Today a coalition of civil rights
and policy groups (including the Benton Foundation) released a study that
re-examines data used by the Commerce Department. According to "Bringing a
Nation Online: The Importance of Federal Leadership," while some of the gap
between those who had access to computer and Internet technology and those
who did not is narrowing, "significant divides still exist between high and
low income households, among different racial groups, between Northern and
Southern states, and rural and urban households." While about 80 percent of
those earning more than $75,000 a year use the Internet at home, the report
said, only 25 percent of people in households with less than $15,000 in
annual income do so. Phil Shapiro, a technology access advocate in
Washington who works with many community computing centers, argued that
progress in bridging the digital divide would be lost if government
financing ended. "If you water a plant and then decide to stop watering it,"
Mr. Shapiro said, "the result is the same as if you never watered it in the
first place."
[SOURCE: New York Times, AUTHOR: John Schwartz]
(http://www.nytimes.com/2002/07/11/politics/11DIGI.html?ex=1027382537&ei=1&e
n=620a3c605b42e3e0)
(requires registration)

COMPUTER LAB BRINGS TECH ACCESS TO LOW-INCOME NEIGHBORHOOD
The Gardner Community Center, located in one of San Jose's low-income
neighborhoods, has a new computer lab. Microsoft and the city's parks
department and redevelopment agency made the venture possible. Open five
days a week, the lab is a place for students to come and do homework, senior
citizens to use e-mail and job-seekers can take classes to improve their
computer skills. Tony Torres, the center's director, comments on the irony
of the community's situation: "Look outside my window. The Adobe 1 and 2
buildings are right there. To the right is the Willow Glen area. But this is
a lower-income area. You talk about the digital divide? We're living it."
Torres hopes that the new computer lab will help the community reap the
technology benefits that wealthier communities take for granted.
[SOURCE: Mercury News, AUTHOR: Kate Folmar]
(http://www.siliconvalley.com/mld/siliconvalley/news/local/3638961.htm)

INTERNET

GROUPS VOW RENEWED CABLE ISP OPEN-ACCESS FIGHT
The American Civil Liberties Union (ACLU), Consumer Federation of America
(CFA) and the Center for Digital Democracy (CDD) have joined forces to call
for tighter regulation of cable Internet service providers. The group fears
that cable companies could easily restrict access to online content if they
are allowed to dominate most of the high-speed Internet market. In response,
National Cable & Telecommuniations Association spokesman Marc Smith said
that "The ACLU offers no evidence whatsoever to show that the provision by
cable operators of high-speed access to the Internet is somehow stifling
development of, or access to, any content on the Internet. All of the
Internet's content is a simple mouse click away for cable modem users." The
ACLU is concerned that restrictions are possible because cable networks,
unlike phone networks, were built by competitive companies operating without
government support. Cable companies have not been held to the same
open-access requirements placed on phone companies.
[SOURCE: The Washington Post, AUTHOR: David McGuire]
(http://www.washingtonpost.com/wp-dyn/articles/A50363-2002Jul10.html)

ACLU WARNS OF THREAT TO ONLINE FREEE SPEECH FROM CABLE MONOPOLIES
Yesterday, the American Civil Liberties Union (ACLU) issued twin reports
examining the technical and policy sides of the Internet cable monopoly
issue. Barry Steinhardt, director of ACLU's Technology and Liberty Program,
cautions that "Many people don't realize that if current policies continue,
a handful of big monopolies will gain power over information flowing through
the Internet. Freedom of speech doesn't mean much if the forums where that
speech takes place are not free." At issue is the push to convert consumers
from dial-up Internet connections to broadband connections. While dial-up
Internet access provides open and equal access to all, cable is a medium
with far greater centralized control. The danger, according to the ACLU, is
that the Internet may come under private control if current policy is not
redefined.
[SOURCE: Center for Digital Democracy]
(http://www.democraticmedia.org/news/ACLUCableReport.html)
See also:
NO COMPETITION: HOW MONOPOLY CONTROL OF THE BROADBAND Internet THREATENS
FREE SPEECH
[SOURCE: American Civil Liberties Union]
(http://www.aclu.org/issues/cyber/broadband.html)
(Requires Adobe Acrobat PDF Reader)

IS THIS LIGHTS OUT FOR THE INTERNET?
In the wake of the dramatic collapse of some of the companies controlling
huge sections of the Internet, author Richard Wray pauses to ask what sort
of long term effects we should expect. The biggest fear is that the "global
informtaion superhighway [will] resemble the M6 motorway at rush hour on a
Friday night - traffic crawling at a snail's pace with nothing able to get
either on or off." Industry experts, however, say that this scenario is not
likely. The Internet is very resilient: most ISPs have connections with
multiple communications networks and all network operators have built more
network than they need. In other words, there is a capacity glut easily
tapped into if needed. The complex and fluid nature of Internet architecture
is the very thing that has allowed it to survive major changes. Wray points
out that, in practice, "the greatest threat to the smooth operation of the
Internet is more likely to come from too many people trying to log on to one
specific site."
[SOURCE: The Guardian, AUTHOR: Richard Wray]
(http://www.guardian.co.uk/Print/0,3858,4458665,00.html)

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

DIGITAL DIVIDE
UWC Supercomputer Switched On

BROADBAND
FBI Uneasy About Plan To Deregulate Fast Net
Cable Companies Cracking Down on Wi-Fi

INTELLECTUAL PROPERTY
Consumers Caught In Tech Squeeze

INTERNET
Web Rebels Profit From Net Controls

DIGITAL DIVIDE

UWC SUPERCOMPUTER SWITCHED ON
On July 8, the first supercomputer in Africa devoted exclusively to research
was switched on at the University of the Western Cape. The Cray SV1 will be
used for tasks including the search for greater understanding of HIV. The
computer works at lightening speeds-several gigaflops. A gigaflop is a
billion operations per second. The supercomputer was installed originally to
help Africa become competitive in the field of genome analysis. But already
new uses have been found such as making cars safer, predicting severe
storms, creating life-saving drugs and probing the shape of the universe.
[SOURCE: All Africa, AUTHOR: South African Press Association]
(http://allafrica.com/stories/200207090009.html)

BROADBAND

FBI UNEASY ABOUT PLAN TO DEREGULATE FAST NET
If the Federal Communication's Commission (FCC) goes through with a decision
to classify broadband as an "information" service, the FBI is concerned it
will hurt their ability to trace terrorist email and Internet activity.
Under the Communications Assistance for Law Enforcement Act (CALEA),
"telecommunications" services are required to design their networks to
facilitate government wiretaps. The FBI told the FCC if broadband providers
are not held to the same standard the FBI could be "hobbled in their ability
to enforce law and protect national security". The FBI is supporting
deregulation but has also asked that the FCC include broadband companies
under CALEA.
[SOURCE: USA Today, AUTHOR: Paul Davidson]
(http://www.usatoday.com/life/cyber/tech/2002/07/09/wiretap-net.htm)

CABLE COMPANIES CRACKING DOWN ON WI-FI
One of the best features of Wi-Fi networks is that anyone within 300 feet of
an access point can get on the Internet. At least, from the public's point
of view this is a benefit. But as more and more grassroots organizations and
public-minded citizens set up Wi-Fi "hotspots," ISPs are moving to shut them
down. Time Warner Cable of New York City has given 10 customers less than a
week to stop using their accounts to provide Wi-Fi access. Time Warner, AT&T
Broadband and other high-speed providers say that the redistribution of
bandwidth is illegal. Only one major company, Covad Communications, allows
paying customers to use their accounts for Wi-Fi networks. While many people
set up Wi-Fi networks specifically to permit access to anyone in range, a
number of people are unaware that their personal networks "bleed" for about
300 feet. Suzanne Guiliani, a spokeswoman for Time Warner Cable of New York
City, said that her company considers sharing of bandwidth not just as
theft, but as a drain on the existing resources for other subscribers. For
the present, companies are targeting only network groups who set up Wi-Fi
with the intention of sharing bandwidth.
[SOURCE: CNET News, AUTHOR: Ben Charny]
(http://news.com.com/2100-1033-942323.html?tag=cd_mh)

INTELLECTUAL PROPERTY

CONSUMERS CAUGHT IN TECH SQUEEZE
Widespread piracy has prompted the film studios and record labels to help
draft legislation that will require copyright protections be built into
electronic devices. They want to limit online distribution and prevent
consumers from making duplicates of movies and music. The technology
industry is resistant saying compliance could result in an entirely new
generation of devices that would not be compatible with existing DVD players
and computers thus forcing consumers to purchase entirely new systems.
Scott Dinsdale, executive vice president of digital strategy at the Motion
Picture Association of America said, "The broadband-wired world offers
enormous business opportunity, if you can make it profitable. But the
current infrastructure is not supportive yet." Tim Bajarin, president of
the Creative Strategies holds an opposing view, "We don't think Hollywood
should dictate design for its own needs."
[SOURCE: USA Today, AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/2002/07/08/consumer-confusion.htm)

INTERNET

WEB REBELS PROFIT FROM NET CONTROLS
An abandoned military platform, dubbed Sealand, is the base for a dot.com
venture with a difference. Internet hosting company HavenCo is using Sealand
to provide an offshore data haven free of government interference. The
English venture comes as governments around the world are busy tightening up
control of the Internet. Co-founder Ryan Lackey spent two years finding a
place to set up an electronic refuge. "We looked all around the world for
somewhere that would have secure Internet hosting, outside of government
regulation and we could not really find any," said Lackey in a BBC
interview. In the end, HavenCo settled for Sealand, a World War II relic.
Sealand is within the territorial waters of Britain and does not recognize
the sovereignty of the site. While HavenCo has few limits on the kinds of
websites it will host, it does draw the line at child pornography, spamming
and hacking. The company has been profitable for more than a year, but it
remains to be seen how long HavenCo will dodge British officials, who are
already insisting that Sealand will have to comply with British Internet
regulations.
[SOURCE: BBC News, AUTHOR: Alfred Hermida]
(http://news.bbc.co.uk/hi/english/sci/tech/newsid_2115000/2115887.stm)

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

DIGITAL DIVIDE
India Rolls Out Cheap, Handheld Computer This Month
Internet Reaches Another Technological Outpost ... The Iranian
Village

COMPETITION
FCC Leaves WorldCom On Hold
EU Competition Chief Talks Antitrust Policy

INTERNET
ICANN Boss: 'We're Not Undemocratic'

DIGITAL DIVIDE

INDIA ROLLS OUT CHEAP, HANDHELD COMPUTER THIS MONTH
India is rolling out a $200 handheld computers called the "Simputer" in an
effort to help underserved communities bridge the digital divide. Officials
at Encore Software Ltd and professors from Bangalore's Indian Institute of
Science launched the handheld device in April 2001 under their nonprofit
Simputer Trust. While the Simputer is aimed at poor and rural Indians who
are unable to read or write, it has also impressed high-end users. The
Simputer will be three times cheaper than the average PC and include
voicemail, text-to-speech applications and Internet access. Deshpande, an
engineer on the project said, "We are in the process of making about 200
Simputers this month and about 1,300 to 1,400 by September based on
potential and existing orders."
[SOURCE: SAN JOSE MERCURY NEWS, AUTHOR: Reuters]
(http://www.siliconvalley.com/mld/siliconvalley/news/3605609.htm)

INTERNET REACHES ANOTHER TECHNOLOGICAL OUTPOST...IRANIAN VILLAGE
The Iranian village, Shahkooh, 240 miles northeast of Tehran, has built a
computer lab to help all interested residents become computer literate.
Classes are free and the village has its own Farsi-language Web site,
Shakooh.com. Since the launch of computer lab, two-dozen villagers have
become entrepreneurs and the Web site is used to market local crafts. The
village sees computer literacy as an essential tool to battle unemployment
and poverty among their residents. With only three percent of the Iranian
population online and half the population under 25, the country appears on
the edge of a high-tech surge. Under reformist President Mohammad Khatami,
Internet cafes have appeared in many Iranian cities and for now surfers have
unrestricted access to all Web sites, including adult and anti-government
sites.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.siliconvalley.com/mld/siliconvalley/news/3601630.htm)

COMPETITION

EU CHIEF TALKS ANTITRUST POLICY
Mario Monti, the competition chief for the European Union, discusses his
approach to technology and antitrust policy in a Q&A session with the
Mercury News. He touches on how emerging technology has affected the way he
looks at competition policy and responds to criticism that the EU
commission's interest in the Microsoft case is more in the interest of
competitors than consumers.
[SOURCE: Mercury News, AUTHOR: Kristi Heim]
(http://www.bayarea.com/mld/mercurynews/business/3605081.htm)

FCC LEAVES WORLDCOM ON HOLD
Critics of FCC Chairman Michael Powell say he should be doing more to
prevent WorldCom's demise, to preserve both continuity of service and the
benefits of telecommunications competition that MCI, now WorldCom's
long-distance unit, helped create by challenging AT&T's monopoly 20 years
ago. To Rep. Edward J. Markey (D-Mass.), that means becoming WorldCom's
advocate in the federal government. "I think he should make it clear that he
is going to support a competitive vision for the future of
telecommunications," Markey said. "Obviously, a collapse of this size could
lead to greater consolidation in the telecommunications market," which would
be likely to lead to higher prices for consumers, Markey said. But Powell
has always maintained that his role is to stand back and allow market forces
to go to work. Critics say Powell should at least ask other federal agencies
not to add to WorldCom's woes by announcing that they may reduce the amount
of business they do with the company.
[SOURCE: Washington Post, AUTHOR: Christopher Stern]
(http://www.washingtonpost.com/wp-dyn/articles/A22054-2002Jul3.html)

INTERNET

ICANN BOSS: 'WE'RE NOT UNDEMOCRATIC'
ICANN's chief Stuart Lynn has hit back at claims the Internet naming body is
disenfranchising the public by stopping its online elections for board
members. Lynn explained the threats of fraud and vote-rigging have forced
the organization to stop online elections. "ICANN is not an experiment in
online democracy," said Lynn. Lynn also claims the number of online voters
is far too small to be significant. He argues that the organization is not
excluding the public, but in fact wants "to find a new way to bring online
users into the fold."
[SOURCE: Silicon.com]
(http://www.silicon.com/bin/bladerunner?30REQEVENT=&REQAUTH=21046&14001REQSU
B=REQINT1=54303)

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