MERGERS
A $6 Billion Deal For Internet Site (NYT)
BROADCAST
PBS Has Seen the Future, and It Is Digitized (WP)
Judge Overturns Disney Obligation To Broadcast Rival (WSJ)
INTERNET
Can Shopping Networks Survive a Crowded Market? (CyberTimes)
Year Later, Sailor in AOL Case Remains a Symbol (CyberTimes)
Lotus Unveils Web-Ready Notes (WP)
Intel Builds Security Protections (WP)
TELEPHONE
How the Bells Can Feel Like Helpless, Pitiful Giants (NYT)
FCC Launches a New Web Site (FCC)
SPECTRUM
Public Safety Radio Spectrum Initiative (NTIA)
ADVERTISING
Al Sharpton Meets Madison Ave. in Multicultural Marketing Efforts (NYT)
ANTITRUST
Online Reporting of Microsoft Trial Worth Emulating (SJ Merc)
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MERGERS
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A $6 BILLION DEAL FOR INTERNET SITE
Issue: Internet
The high-speed Internet cable modem service, At Home, is expected to
announce plans to acquire Excite, a leading Web destination. This deal, if
completed, would be one of the largest in a recent wave of Internet
acquisitions. The agreement is also part of the trend of telecommunications
carriers and Internet firms banding together to offer high-speed Internet
connections. AT&T, the company that will control a major share in At Home
once its
acquisition of TCI is finalized, could strengthen its Internet position with
the
ability to offer a variety of Internet and phone serves through At Home. A
person close to the deal valued the transaction at $6 billion -- far
exceeding even the recent America Online purchase of Netscape.
[SOURCE: New York Times (A1), AUTHOR: John Markoff]
http://www.nytimes.com/library/tech/99/01/biztech/articles/19net.html
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BROADCAST
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PBS HAS SEEN THE FUTURE, AND IT IS DIGITIZED
Issue: Digital TV
PBS Kids Channel, a new 24 hour channel aimed at children who are preschool
through age 12, begins broadcasting on September 1. It will be a digital
television broadcast so few viewers will be able to watch it initially. PBS
President Ervin Duggan announced the launch on Monday as part of a larger
children's programming initiative that has been funded to the tune of $125
million. The initiative, which kicks off in July, also includes a
Spanish-language version of its magazine PBS Families, programming on early
childhood development, and expansion of the online feature PBS Kids and of
its free book distribution program. Duggan said PBS Kids Channel is just
one of many digital channels the network plans to launch over the next
couple of years. The channel will be made available to every member station
for local broadcast. Only about a third of PBS stations plan to be
broadcasting digitally by the end of the year. Some cable systems may also
telecast Kids Channel programming.
[SOURCE: Washington Post (C7), AUTHOR: Lisa de Moraes]
http://search.washingtonpost.com/wp-srv/WPlate/1999-01/19/051l-011999-id...
JUDGE OVERTURNS DISNEY OBLIGATION TO BROADCAST RIVAL
Issue: Broadcast
A federal court judge in St. Paul (MN), overturned a $20 million jury
award that Children's Broadcasting Corp. won in the fall from Walt Disney
Corp for breach of contract and misappropriation of trade secrets.
Children's Broadcasting until last year operated a children's radio network
called AAHS World Radio, which featured music and other programming for
kids. ABC agreed in 1995 to sell national advertising for the network, line
up new affiliates and perform other services. Disney terminated the
contract in 1996 announcing its intention to test its own kids radio concept
called Radio Disney. In overturning the jury award and dismissing the case,
Judge Donald D. Alsop wrote that the jury award was not supported by
evidence of damages to Children's Broadcasting. Children's Broadcasting
issued a statement saying it plans to appeal.
[SOURCE: Wall Street Journal (B8), AUTHOR: Bruce Orwall]
http://wsj.com/
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INTERNET
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CAN SHOPPING NETWORKS SURVIVE A CROWDED MARKET?
Issue: E-Commerce
"We're seeing a proliferation of people who think they can sell anything to
anybody," said Kate Delhagen, senior analyst with Forrester Research
http://www.forrester.com/. "I happen to think there will be an incredible
crash and burn rate among them." Electronic commerce sites are springing up
all over the Net and Wall Street is rewarding the companies with high stock
prices when they go public. But even though e-commerce is young, it may be
too late to stake some ground: "Most people are already flocking to the
well-known and well-trusted marketplaces," Ms. Delhagen said, pointing to
success stories like Amazon.com. "There might be some room in the second
tier for others, such as content networks like iVillage or specialists like
Garden.com, but beyond that, there will be a lot of roadkill." Ken Cassar, a
senior analyst with Jupiter Communications http://www.jup.com/, said "the
biggest challenge is that it's phenomenally expensive to create an Internet
brand, because advertising is so expensive. So you need deep pockets, and an
ability to convince merchants that a long-term partnership deal will direct
qualified traffic to them."
[SOURCE: CyberTimes, AUTHOR: Bob Tedeschi tedeschi( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/commerce/19commerce.html
YEAR LATER, SAILOR IN AOL CASE REMAINS A SYMBOL
Issue: Privacy
Tim McVeigh will be honored at an Out magazine ceremony noting the year's
biggest newsmakers. Last year, the 18-year Navy veteran became the center of
two fights -- over gays in the military and the right to privacy online.
Using a private email account to organize a toy drive, Mr McVeigh was turned
in by a colleague who noticed that his America Online screen name list
McVeigh's marital status as "gay." The Navy investigated and AOL voluntarily
confirmed that McVeigh's screen name belonged to the sailor. The Navy then
started proceedings to oust McVeigh. After building a website and sending
out email asking for help, McVeigh was aided by Servicemembers Legal Defense
Network http://www.sldn.org/, a group that helps homosexuals in the
military, and the Electronic Privacy Information Center (EPIC)
http://www.epic.org/ in actions against both the Navy and AOL. "I did win
my case -- the military had to keep me. The downfall was the military wasn't
going to give me an equivalent job," McVeigh said recently. "Even though
there was a ruling by a federal judge that they had to return me, the judge
didn't have the power to restore my job."
[SOURCE: CyberTimes, AUTHOR: Lisa Napoli]
http://www.nytimes.com/library/tech/99/01/cyber/articles/19mcveigh.html
LOTUS UNVEILS WEB-READY NOTES
Issue: Competition
Lotus Development Corp. on Monday introduced a new version of its popular
Notes inter-office software system that works like a Web browser and
announced a pact with America Online Inc. to deliver news, e-mail and Web
searching capability. The highly anticipated Release 5 of Notes was
designed from the ground up with the Internet in mind, presenting to Notes
users the look of an Internet browser instead of the electronic file and
folder metaphor of older versions of the software. The deal with AOL would
supply Notes users with access to real-time information culled from AOL's
online print, audio and video news sources directly through Notes. Notes
users could also chat via AOL's Instant Messaging service. IBM's Lotus and
Microsoft's Exchange software dominate the market for large corporate
computer messaging systems and are neck-and-neck in competition for
dominance. The Lotus-AOL deal, the latest move in the industry to bring
together two arch-rivals of Microsoft will be followed by further deals in
the next month, according to Lotus Chief Executive Jeff Papows. An IBM
executive said the AOL deal helps expand Notes potential audience beyond
large corporations and into small and medium-sized businesses.
[SOURCE: Washington Post (Online), AUTHOR: Eric Auchard (Reuters)]
http://www.washingtonpost.com/wp-srv/washtech/daily/jan99/lotus19.htm
INTEL BUILDS SECURITY PROTECTIONS
Issue: Internet/Encryption
Intel Corp. and RSA Data Security Inc. announced Monday a joint effort to
support e-commerce growth worldwide by keeping hackers away from credit card
numbers and digital signatures. Intel plans to develop computer chips that
incorporate Intel hardware and leading software security tools by RSA.
Intel's innovation, however, could conflict with restrictions on the export
of data scrambling technology, imposed by the government to protect the
nation from criminals and terrorists. David Wu, a San Francisco analyst,
said Intel may face obstacles to selling the technology overseas. "These
high performance chips are going to get Internet commerce more safe. It
helps the overall computer industry, but Intel may have to use good,
persuasive lobbyists and lawyers in Washington to get them accepted."
Michael Glance of Intel would not comment on how the company plans to get
around the export restrictions.
[SOURCE: Washington Post (Online), AUTHOR: Martha Mendoza (Reuters)]
http://search.washingtonpost.com/wp-srv/WAPO/19990119/V000442-011999-idx...
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TELEPHONE
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HOW THE BELLS CAN FEEL LIKE HELPLESS, PITIFUL GIANTS
Issue: Local Telephone
These days, it seems as if the Baby Bells have plenty to cry over. With
government regulators scrutinizing every merger deal and shooting down plans
for getting into the long-distance market, how can the local phone titans
fulfill their ambitions for expansion? While the regional Bells still
control the cooper wire that connects almost every home and business in the
country -- perhaps the most valuable communications asset in the world --
they feel limited by regulatory power. Shareholders, however, may be holding
back the Baby Bells as much as the FCC is. The local phone companies have
traditionally attracted conservative investors who are more focused
dividends than big acquisitions and growth. This might be one reason that
Bell Atlantic recently lost out to Vodafone in its efforts to acquire
Airtouch Communications. Vodafone simply had more aggressive shareholders
and could afford to pay more for the wireless carrier.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
http://www.nytimes.com/yr/mo/day/news/financial/phones-compete.html
FCC LAUNCHES A NEW WEB SITE
Issue: Consumers/Telephone
The website "includes a wealth of information that will help you make more
informed decisions about telephone-related service providers; and now you
also can file consumer complaints on-line. The pages that follow have been
carefully created with your needs as consumers in mind." See an oversight at
http://www.fcc.gov/ccb/enforce/index-overview.html.
[SOURCE: FCC]
http://www.fcc.gov/ccb/enforce/
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SPECTRUM
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PUBLIC SAFETY RADIO SPECTRUM INITIATIVE
Issue: Spectrum
From the news release: The Commerce Department announced Jan 14 that it is
launching a new initiative that will address the critical need for radio
communications among Federal, state and local emergency officials. Through
the new Public Safety Radio Spectrum Initiative, the Department will lead
Federal efforts to ensure that emergency workers at all levels of government
have instant access to secure radio bands necessary to communicate
effectively during emergency situations. Congress provided $1.95 million for
the initiative as part of the Omnibus Consolidated and Emergency
Supplemental Appropriations Act of Fiscal Year 1999. "Recent disastrous
events in our nation, both natural and man-made, have shown that emergency
workers at all levels of government need access to fast, reliable
communications in order to perform their jobs effectively and successfully,"
said Commerce Assistant Secretary Larry Irving. "This new initiative will
enable us to develop a national strategy to ensure that sufficient radio
spectrum is available when and where an emergency or public safety need may
arise."
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/011499publicsafety.htm
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ADVERTISING
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AL SHARPTON MEETS MADISON AVE. IN MULTICULTURAL MARKETING EFFORTS
Issue: Advertising
Yesterday, minority advocates and advertising executives met at New York's
Waldorf-Astoria to discuss the media and multicultural markets. A study
released last week by the Federal Communications Commission confirmed long
standing suspicions that advertisers discriminate against media outlets
aimed primarily at black and Hispanic audiences. The meeting -- held by Al
Sharpton's advocacy group, the National Action Network -- was attended by
over 250 participants, including top advertising executives and owners of
minority media outlets. "It is in our judgment very significant, in fact
historic, to bring the advertising industry together to deal with this
issue," Sharpton said. "This is not a one-night stand at the Waldorf. This
is a marriage."
[SOURCE: New York Times (C7), AUTHOR: Stuart Elliot]
http://www.nytimes.com/yr/mo/day/news/financial/multicultural-ad-column....
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ANTITRUST
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ONLINE REPORTING OF MICROSOFT TRIAL WORTH EMULATING
Issue: Journalism
Columnist Gilmor appreciates that he has not had to spend months inside the
Washington, D.C., courtroom where U.S. District Judge Thomas Penfield
Jackson is hearing the case. No, its not because of CourtTV coverage --
there are no television cameras in the courtroom. It has been the use of the
Internet by the competing parties that Gilmor applauds. On sites for
Microsoft http://www.microsoft.com/presspass/trial/default.htm and the
Department of Justice http://www.usdoj.gov/atr/cases/ms_index.htm, you can
see direct testimony, trial exhibits, and innumerable internal documents
from Microsoft (see DoJ site). Even if cameras were allowed in the
courtroom, the educational potential of multimedia Internet exhibits is
great. Gilmor concludes "let's offer well-deserved applause to Microsoft and
the Justice Department. They may be acting in self-interest, but they're
doing a real public service."
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor dgillmor( at )sjmercury.com]
http://www.mercurycenter.com/columnists/gillmor/docs/dg011999.htm
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