** We'll see you Tuesday -- enjoy the holiday **
TELEVISION
TV Faces the Yawn of History (ChiTrib)
RADIO
Top Legislator Blasts U.S. FCC Microradio Proposal (SJ Merc)
INTERNET
Yahoo Offers to Expedite Its Site Reviews, for a Fee (NYT)
Lawsuits Challenge Search Engines' Practice of
'Selling' Trademarks (CyberTimes)
Being Free To Vent On The Net (SJ Merc)
TELEPHONE
Established Local-Phone Companies Use Ruling's Fine Print to
Frustrate Upstarts (WSJ)
ALLIANCES
Lycos Merger Hits a Snag (WP)
MCI to Sell Unit to EDS; Area Jobs May Shift (WP)
Federated to Buy Catalogue Retailer (WP)
ANTITRUST
Microsoft Officer Denies Memo by AOL on Gates Bid To
Get Rid Of Netscape (WSJ)
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TELEVISION
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TV FACES THE YAWN OF HISTORY
Issue: Television
Today's expected decision in the impeachment trial may merit interruption of
more entertaining shows like The Bold and The Beautiful and As The World
Turns. Much of the public -- and with it television executives -- have
dismissed "the trial of the century:" "Back when O.J. (Simpson) was on
trial, everybody said, `God, I hate this story.' But they all watched it,"
said Lane Venardos, an executive producer at CBS News. "With this, people
say, `God, I hate this story.' And they're not watching it. They're telling
the truth on this one." Jones writes that trial will leave its mark on
television and the coverage of big stories: gavel-to-gavel coverage of
proceedings have gone from broadcast networks to cable. "The strangest thing
about the impeachment was you had the feeling that you were witnessing a
real moment in history . . . yet it
didn't have any of the depth of feeling and meaning or the sense of awe that
comes from what you'd normally associate with those kinds of news stories,"
said Bob Murphy, senior vice president at ABC News. "We stayed with the key
historical or editorial moments, and given the import of the story, I'm just
amazed that that's all that it merited. But that's what it did merit."
Watergate played better on television -- and 25 years ago, there were no
cable channels to cover the story like CNN, MSNBC, or Fox News [Jones does
not mention CSPAN]. Some of these cable channels have lived off this story
for months: "I think the legacy of all of this on our discourse is going to
be very interesting to watch,"said a CNN executive."Some networks proved
that they can live by bread alone if the bread is spicy enough. I think it's
our feeling that you need a broader diet than that." Jones concludes, If all
goes as expected, the diet should change this weekend.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones]
http://chicagotribune.com/textversion/article/0,1492,SAV-9902120456,00.html
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RADIO
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TOP LEGISLATOR BLASTS U.S. FCC MICRORADIO PROPOSAL
Issue: Radio
Rep. Billy Tauzin (R-LA) said Thursday the Federal Communications
Commission's plan for developing microradio would reduce the audience and
advertising revenue of current stations and possibly create severe
interference. Speaking to the National Association of Broadcasters
convention, Rep Tauzin, the chairman of the House Commerce Committee's
communications subcommittee, said the FCC "is an agency out of control that
demands congressional action to straighten it out." Rep Tauzin said he
planned to introduce legislation to revamp the agency's structure and
powers. He also said he would introduce a bill to repeal a
provision of the 1996 Telecommunications Act that subsidizes Internet
connections for schools and libraries. The so-called "e-rate" discount is
funded from fees added to long distance telephone calls. Before speaking
Rep Tauzin sent a letter to FCC Chairman William Kennard requesting the FCC
take "no further action on this agenda." Later Chairman Kennard in a
statement urged the lawmaker to talk to the educational, religious and
community groups that support the microradio plan. The microradio plan is
now open for public comment and could be revised or put on hold after the
comment period.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
http://www.mercurycenter.com/svtech/news/breaking/merc/docs/040060.htm
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INTERNET
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YAHOO OFFERS TO EXPEDITE ITS SITE REVIEWS, FOR A FEE
Issue: Internet
Yahoo has begun offering a way for businesses to expedite the review process
for inclusion in Yahoo's popular Internet search directory. For a $199 fee,
Yahoo guarantees that a business's website will be considered within
7 business days. Yahoo doesn't promise that any site will actually be placed
in the directory, but simply receive "express consideration". While most
other portals depend on electronic searches of the Web, Yahoo only lists
sites that have been reviewed and categorized by it's employees. This new
offer by Yahoo is seen as an indication of the growing power of Web portals.
"They find themselves in a very strong position and they believe they can
command these fees, and they probably will be able to," said Drew Ianni, an
analyst at Jupiter Communications, a research firm in New York. "It just
seems a bit disingenuous because these are the same kinds of sites that
helped to build Yahoo."
[SOURCE: New York Times (C19), AUTHOR: Amy Harmon]
http://www.nytimes.com/library/tech/99/02/biztech/articles/12yahoo.html
LAWSUITS CHALLENGE SEARCH ENGINES' PRACTICE OF 'SELLING' TRADEMARKS
Issue: Internet/Advertising
Playboy and Estee Lauder are suing Excite and Netscape for the practice of
having certain banner advertisements appear when a user enters their
trademarked names as search terms. It is common practice among search
engines to link banner advertisements to particular keywords. Some analysts
estimate that these targeted ads account for nearly one third of a portal's
ad revenues. Playboy argues that the advertisements for explicitly
pornographic Web sites that appear along with the search results for the
term "Playboy" amount to trademark infringement and unfair competition. If
Playboy and Estee Lauder can convince the court that only trademark holders
can purchase advertisements triggered by trademark keyword, "it will have
quite an effect on the business model of search engines," said Nick Copley
of Thomson & Thomson, a company that tracks search engines.
[SOURCE: CyberTimes, AUTHOR: Carl Kaplan]
http://www.nytimes.com/library/tech/99/02/cyber/cyberlaw/12law.html
BEING FREE TO VENT ON THE NET
Issue: Privacy
In his column, Gillmor promotes a newly unveiled software product, called
"Freedom," from Montreal-based Zero Knowledge Systems. "Freedom" would allow
people to remain anonymous as they serf the web, send e-mail comments, and
create a "virtual persona." The product was introduced at this week's Demo
technology trade show in Southern California. Gillmor says our society
theoretically believes in the rights of people to speak their mind, but in
practice we discriminate against people for doing so. "As long as that is the
case, the people who fear discrimination need a discreet way to talk." Many at
the show said the name of the software is ironic, believing that people should
be held accountable for what they say. In response, Gillmor writes: "I
have been attacked online by sleazeballs who put phony names on their mail or
postings. It wasn't fun. But the alternative -- what amounts to a pervasive
surveillance system on everything we do in cyberspace -- is much more
frightening."
Gillmor says he will use "Freedom" to make it more difficult for commercial Web
sites to keep tabs on him: "My browsing habits are no one's business but mine."
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
http://www.mercurycenter.com/svtech/columns/gillmor/
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TELEPHONE
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ESTABLISHED LOCAL-PHONE COMPANIES USE RULING'S FINE PRINT TO FRUSTRATE UPSTARTS
Issue: Telephony
A Jan 25 Supreme Court Ruling affirmed the Federal Communication Commission's
(FCC) position to spur competition for local-phone companies. The Court had
questions about the provision that "requires local-phone companies to
make part of their networks available to rivals." In light of this request for
reexamination, many Baby Bells and GTE are refusing to sign agreements with
competitors and preventing them from providing service in their areas.
Pittsburgh-based Hyperion Telecommunications had a grand opening celebration in
Baltimore Feb 4, but hasn't been able to start selling because Bell Atlantic
refuses to sign Hyperion's "proposed interconnection pact," their lawyer said.
The FCC is trying to prevent action on the loophole by seeking oral and written
pledges by GTE and the Baby Bells to open their networks to
competitors. Larry Strickling, chief of the FCC's Common Carrier Bureau said,
"the issue won't be formally resolved until the agency issues a new list of the
parts of networks that local phone companies will have to offer rivals." This
is not expected until "sometime this summer," he said. An additional section of
the Supreme Court ruling is being used by Bell Atlantic to slow competition.
Bell Atlantic is refuting the practice of competitors to renew old contracts
between local companies and other carriers, instead of starting from scratch.
Bell Atlantic lawyer, John Messinger says laws and technology have changed
since older pacts.
[SOURCE: Wall Street Journal (B8), AUTHOR: Kathy Chen]
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ALLIANCES
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LYCOS MERGER HITS A SNAG
Issue: Mergers
CMGI, a Massachusetts Internet investment firm that is Lycos' biggest
shareholder, said it was "generally supportive" of the merger with USA
Networks, but said it will not endorse the move unless something is done to
make the deal more attractive. Yesterday the price of Lycos stock went up
$16 a share, which CMGI should see as a step in the right direction. The
stock response did nothing to end the Wall Street debates on whether the
matchup of the fourth largest Internet entryway with the USA Networks
umbrella of services was a good idea. Analyst David Simons noted that Lycos
is growing at 150 percent a year and has nothing to gain by getting together
with Home Shopping Network and Ticketmaster, which are growing at 6% a year.
[Except, perhaps, actual revenues]
[SOURCE: Washington Post (E1), AUTHOR: Jerry Knight]
http://www.washingtonpost.com/wp-srv/business/daily/feb99/lycos12.htm
MCI TO SELL UNIT TO EDS; AREA JOBS MAY SHIFT
Issue: Mergers
In a deal with Electronic Data Systems Corp., MCI WorldCom is selling its
Systemhouse computer management business outright for $1.65 billion in cash.
In 1995 MCI paid $1 billion for SHL Systemhouse, a Canadian firm that
designs customized computer systems. MCI had hoped to break into the
business of linking corporate computer systems to outside communications
networks, but company representatives concluded that Systemhouse was too
small to handle the large-scale systems integration contracts the company
hoped to win. The new agreement also transfers in-house computing for such
things as personnel and benefits from MCI WorldCom to EDS, a job worth $5
billion to $7 billion over 10 years. MCI WorldCom will supply EDS with phone
and data communications services worth $6 billion to $8.5 billion.
[SOURCE: Washington Post (E1), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/business/daily/feb99/mcieds12.htm
See also:
MCI WORLDCOM AND E.D.S. FORM AN ALLIANCE
[SOURCE: New York Times (C2), AUTHOR: Lawrence M. Fisher]
http://www.nytimes.com/library/tech/99/02/biztech/articles/12phone.html
FEDERATED TO BUY CATALOGUE RETAILER
Issue: Mergers
Federated Department Stores, the owner of Macy's and Bloomindale's, is
expanding its clientele into low-budget consumers and its presence online by
acquiring Fingerhut Companies, which is best known as the country's
second-largest catalog retailer. Fingerhut has been repositioning itself
recently going beyond mail order and focusing on its database marketing
business as well as acquiring minority stakes in a couple of Internet
retailers. Industry analysts called this another attempt by old-line
retailers to stake out a position in electronic commerce. Federated can use
Fingerhut's sophisticated computer networking and customer-service
infrastructure to compete with online retailers. Fingerhut also has a
customer base than is of lower average income than Federated, the largest
upscale department store retailer in the United States.
[SOURCE: Washington Post (E1), AUTHOR: Tim Smart]
http://www.washingtonpost.com/wp-srv/business/daily/feb99/federated11.htm
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ANTITRUST
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MICROSOFT OFFICER DENIES MEMO BY AOL ON GATES BID TO GET RID OF NETSCAPE (WSJ)
Issue: Antitrust
Lead trial counsel for the Justice Department, David Boise questioned Microsoft
chief marketing director, Brad Chase about a memo written by AOL executive that
described statements made by Bill Gates at a Jan. 18, 1996 meeting between the
two companies. The memo says, "Gates delivered a characteristically blunt
query: how much do we need to pay you to screw Netscape?" Chase denies the memo
is factual and says he was at the meeting and no such statement was made. In
fact, he said after the 1996 agreement AOL customers could obtain Netscape
software. To the contrary, Mr. Boise presented Chase with a memo he had written
after the meeting, "describing the way of getting Netscape's browser software
as pretty remote." Downloading Web browsers from the WorldWide Web is a method
Chase cited as ensuring competition for Microsoft: "Downloading Web-browsing
software takes time, but millions of people do it, he said," Chase said. Mr.
Boise refuted this by saying that many downloading attempts fail or are done
merely to upgrade to a better version.
[SOURCE: Wall Street Journal (B8), AUTHOR: Keith Perine and Mark Boslet]
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...and we're outta here. Have a great weekend. We'll be back on Tuesday.