MERGERS
FCC OKs Ameritech's Takeover (ChiTrib)
FCC Begins Rewriting Rules for Industry in Consolidation (NYT)
DIGITAL DIVIDE
Study Aimed at Promoting Internet Access by Black Colleges (NTIA)
INTERNET
Virginia's Internet Law Challenged (WSJ)
Web Tools Connect Schools And Parents (SJM)
DIGITAL TV
Geocast Uses TV Stations To Broadcast Clips to PCs (WSJ)
NONPROFITS & TECHNOLOGY
Techie Volunteers Fill a Need at Charities and Schools (NYT)
Charity Concerts To Go On Internet (NYT)
MERGERS
FCC OKS AMERITECH'S TAKEOVER
Issue: Mergers
The Federal Communications Commission approved SBC's takeover of Ameritech
on Wednesday. The combined company will meet "unprecedented" conditions
meant, in part, to hasten competition in the local phone market. All five
Commissioners approved the $72 billion deal, but the FCC's Republican
members accused their colleagues of regulatory overzealousness and dissented
from the 30 conditions. "No proposed telecommunications industry merger that
has come before this commission has been more momentous than this," said FCC
Chairman Bill Kennard in a statement. "For that reason, none has been more
difficult, consumed more time, or engendered more passionate controversy on
both sides." The deal was originally announced in May 1998 and FCC approval
was the last regulatory hurdle. "The conditions to which SBC and Ameritech
agreed...will change the status quo to the benefit of telecommunications
consumers," Chairman Kennard said. "I am proud that we are able today to
announce this victory for consumers."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Frank James]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99100701
35,FF.html)
See Also:
FCC APPROVES SBC-AMERITECH MERGER
From Press Release: The Federal Communications Commission (FCC) approved
applications to transfer control of FCC licenses and lines from Ameritech
Corp. (Ameritech) to SBC Communications Inc. (SBC) subject to significant,
enforceable and unprecedented conditions. The 30 conditions are designed to
further open the local markets of these Regional Bell Operating Companies
(RBOCs) to competition, stimulate the deployment of advanced broadband
services, and to strengthen the merged firm's incentives to expand
competition outside its 13 state service area. The FCC found that with these
conditions the merger of SBC and Ameritech is in the public interest. Upon
consummation of this merger, SBC will control three of the original seven
RBOCs (SBC's Southwestern Bell Telephone and Pacific Telesis with
Ameritech). The 30 conditions adopted by the Commission are designed to
accomplish five central public interest goals: 1.) promoting equitable and
efficient advanced services deployment; 2.) ensuring open local markets; 3.)
fostering significant out-of-region competition for the first time by a Bell
Operating Company; 4.) improving residential phone service; and, 5.)
ensuring compliance with and enforcement of the conditions. An outline of
the conditions are available at
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrc9077a.html)
.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9077.html)
FCC BEGINS REWRITING RULES FOR INDUSTRY IN CONSOLIDATION
Issue: Mergers
Facing reviews of some $250 billion in proposed mergers, the Federal
Communications Commission has begun to set the conditions it will impose on
the deals that promise to consolidate, blur and redefine the nation's phone
cable, and broadcast industries. The FCC is trying to balance economies of
scale, which could result in lower prices, against large-scale
consolidations, which could result in less competition and higher prices.
"We are certainly not per se against consolidations, particularly those that
achieve the kinds of economies of scale that can help consumers," FCC
Chairman Kennard said Wednesday. "On the other hand, we are against those
consolidations that raise the barriers to entry by competitors." In the
phone market, the approval of the SBC-Ameritech merger means that just four
of the original seven Baby Bells remain; and the possible approval of the
Sprint-MCI WorldCom deal would mean four dominant long distance carriers
would have shrunk to two. "The obvious answer to all this," said Edward
Whitacre Jr., chairman of SBC, "is let everybody do everything." He means,
of course, to let the Baby Bells into the long distance market. In
broadcasting, the FCC must review the CBS-Viacom deal which, as structured
now, would exceed national audience caps. On Friday, the FCC will set new
rules on cable ownership concentration. The industry is watching whether the
agency will relax its standards to permit AT&T to complete the acquisition
of Mediaone. The aim of the rules to be announced on Friday would be to
prevent further consolidation of traditional cable service -- television --
while encouraging AT&T and its smaller competitors to continue to invest
heavily in developing networks capable of offering high-speed Internet and
telephone services as well.
[SOURCE: New York Times (A1/C1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/library/financial/100799telecom-mergers.html)
DIGITAL DIVIDE
STUDY AIMED AT PROMOTING INTERNET ACCESS BY BLACK COLLEGES
Issue: Digital Divide
From Press Release: Commerce Secretary William Daley today announced the
award of a $90,027 contract for a study on the status of telecommunications
capabilities of the nation's 116 historically black colleges and
universities as part of a Clinton-Gore Administration initiative to help
develop an information technology infrastructure that is accessible to all
Americans. Sec Daley said the study, to be conducted by the National
Association for Equal Opportunity in Higher Education, will enable the
Commerce Department to identify the technology and telecommunications needs
of black college and university communities and help determine how the
department can better assist them in accessing the Internet. The contract
for the study was awarded by the Commerce Department's NTIA. Besides helping
NTIA determine the computer capabilities of the black colleges, the study
will, among other things, help promote telecommunications innovation,
research and engineering, foster the institutions' continued growth in the
economy and increase opportunities for their participation in NTIA-
supported projects. The NAFEO is the only membership organization of all 116
historically and predominantly black colleges and universities in the nation
and administers a number of programs that seek to strengthen their
institutional capacities.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/nafeo100599pr.htm)
INTERNET
VIRGINIA'S INTERNET LAW CHALLENGED
Issue: Internet Regulation
Civil rights advocates and 15 Internet businesses filed a federal lawsuit
yesterday challenging the constitutionality of a new Virginia law that
seeks to ban commercial material from the Internet that could be considered
harmful to juveniles. Under the law, it is a crime to knowingly sell, rent
or loan to a juvenile electronic files or messages containing an image
"which depicts sexually explicit nudity, sexual conduct or sadomasochistic
abuse and which is harmful to juveniles." The law also bars the display of
such material for commercial purposes in ways that would enable juveniles
to "examine and peruse" it. The law also applies to verbal descriptions or
narrative accounts of sex. The lawsuit alleges that in the process of
shielding children from harmful material, Internet users and businesses
"will be obliged to self-censor their speech, thus reducing the adult
population in cyberspace to reading and communicating only material that is
suitable for juveniles." The lawsuit names Virginia Gov. James S. Gilmore
III and Attorney General Mark L. Earley as defendants. The Virginia
General Assembly enacted the law April 7 over the objections of Gilmore,
who tried to delay its consideration for a year, a spokeswoman for the
governor's office said. Officials say no one has been charged under the
law, which went into effect July 1. The misdemeanor carries penalties of up
to 12 months in jail and a fine of up to $2,500. Del. Robert G. Marshall
(R-Prince William), who sponsored the bill, said it was intended to target
a narrow audience -- those who sell pornography to children.
[SOURCE: The Washington Post (B1), AUTHOR: Leef Smith]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-10/07/264l-100799-idx.html
)
WEB TOOLS CONNECT SCHOOLS AND PARENTS
Issue: Ed-tech
A new computer system used at San Benito is one of a growing number that
enables parents to look up their children's report cards, test scores,
attendance records and class schedules. Many schools are turning to both
commercial software programs and Web-based systems that can be accessed by
parents from any Internet site to improve the way they get information to
parents. Access to these programs is free for parents but can cost the
school around $3,000 to acquire the software. San Benito High's Isis system
taps into information already collected for the campus' internal student
data system. National Computer Systems of Minnesota, which already makes
education computer systems, recently added Parent Connection, an
information system, which is revving up at 200 schools nationwide. EduLink
has sold systems to 25 schools in four states in the last four years.
Information available to parents will include immunization records,
disciplinary incidents and progress on assignments. One hurdle for these
programs lies in the fact that some parents and teachers are limited in
using the new Internet information by computer phobia and access.
Low-income parents are less likely to have computers at home while others
may not read English.
[SOURCE: San Jose Mercury News, AUTHOR:]
(http://www.mercurycenter.com/svtech/news/indepth/docs/school100799.htm)
DIGITAL TV
GEOCAST USES TV STATIONS TO BROADCAST CLIPS TO PCs
Issue: Digital TV
Geocast Network Systems Incorporated plans to use local stations' new
digital capabilities to broadcast TV clips to PCs. Geocast will use local
broadcast towers to shower digital bits on millions of PCs at speeds
greater that the fastest broadband cable or telephone pipes. Geocast is
designing a special $299 box that will receive and store TV programming,
then let consumers call up on their computers news clips, sports
highlights, music videos and other short programs. Viewers will use a
personalized Geocast browser to select specific local news clips, traffic
cameras along their commute routes, their favorite musicians or other
content that Geocast will collect and broadcast. Traditional Web surfing
isn't possible, but Geocast will let users easily revert to their
conventional browsers and Internet connections. There are many similarities
between Geocast's plan and the efforts of Excite At Home Corporation.
Geocast is signing up terrestrial broadcasters to dedicate a portion of
their digital bandwidth to its high-speed programming, whereas ExciteAtHome
has signed up cable-TV operators to jointly offer its slower speed
Internet service. Also like ExciteAtHome, Geocast is promising to relieve
its TV partners of the burden of operating their own back-end Internet
infrastructure. Additionally, Geocast hopes to be a "portal" like
ExciteAtHome -- a portal to the broadcast world that is...rather than to the
Internet.
While broadcasters have long believed the future of TV lies in improved
images known as high-definition television. A lack of compelling HDTV
programming, the high cost of HDTV sets and issues of poor quality of HDTV
reception have slowed the adoption of HDTV.
[SOURCE: Wall Street Journal (B14), AUTHOR: David Bank]
(http://interactive.wsj.com/articles/SB939251191691333670.htm)
SEE ALSO:
MERGING TV AND THE WEB
[SOURCE: The Washington Post (E1), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-srv/business/feed/a27985-1999oct7.htm)
NONPROFITS & TECHNOLOGY
TECHIE VOLUNTEERS FILL A NEED AT CHARITIES AND SCHOOLS
Issue: Nonprofits & Technology
There is a new brand of volunteers helping out in communities around the
nation. They are offering their computer skills to non-profits that might
not otherwise afford such services. "These places really need us," said
Carl Goldschmidt, a software engineer for HBO, who founded an organization
called Voluntech.org. "They can have the most caring staff in the world,
but you can't get anything done today without technology." Voluntech.org
has over 80 volunteers that work with almost 40 nonprofit groups, doing
things like setting up Web sites, designing databases and teaching Internet
classes. Another organization in New York City called Mouse, works to
integrate technology into the city's public schools. Compumentor, based in
San Francisco offers nonprofits and schools a host of services like
low-cost consulting services and year 2000 planning. The need for
volunteers or low-cost tech help is growing as the salaries of information
technology professionals have skyrocketed, making their services
unobtainable for many nonprofit groups.
[SOURCE: New York Times (E11), AUTHOR: Olivia J. Abel]
(http://www.nytimes.com/library/tech/99/10/circuits/articles/07volu.html)
CHARITY CONCERTS TO GO ON INTERNET
Issue: Nonprofits & Technology
In a departure from the traditional star-studded charity benefit, Netaid
will not conclude with this Saturday's Webcast of concerts in New Jersey,
London and Geneva. "We want to use the computer to help change how the
world looks at poverty and motivate people to help," said Djibril Diallo,
public affairs director for the United Nations agency that co-sponsors the
site (www.Netaid.org) with Cisco systems. Netaid.org is a clearinghouse of
information on world poverty and the agency's programs as well as a means
of raising money. The site, which can handle 60 million hits an hour, and
process 1,000 donations a second, expects millions of visitors for this
Saturday's Webcast featuring David Bowie, Sting and Sean "Puffy" Combs,
among others. "The difference between this and earlier concerts is that we
created a vehicle for people to come back, not just on the night of the
concert with the one check they write," said Mark Malloch Brown, the
development program's new administrator.
[SOURCE: New York Times (E10), AUTHOR: Michel Marriott]
(http://www.nytimes.com/library/tech/99/10/circuits/articles/07volu.html)
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