DIGITAL DIVIDE
Gore Proposal Could Narrow 'Digital Divide'(USA)
Federal-State Joint Conference on Advanced Services (FCC)
TELEVISION
Speech: "Analog" Values for the Digital Age: Localism, Diversity,
Public Obligation (NTIA)
Advertising: Executives Hope Interactive TV and Consumers
Will Click (NYT)
Local Television Services in Underserved Rural and Small Markets
(NTIA)
NBC Affiliate Agrees to Pay for Programs (WSJ)
Antismoking Group Puts Stop to TV Ads That Got Criticism (WSJ)
TELEPHONY
Justice Dept. Recommends Rejection of SBC Long-Distance Bid (WP)
INTERNET
GE Mentoring Program Turns Underlings Into Teachers of the Web (WSJ)
You've Got a Call: AOL May Buy Net2Phone (USA)
3-D Sports Tutor: Nothing but Internet (SJM)
MERGERS
Merger Delay Could Save AT&T Billions (USA)
Healtheon Agrees to Buy 2 Competitors (NYT)
PRIVACY
Privacy Advocates Fault New DoubleClick Service (NYT)
INTERNATIONAL
Talk of a Telephone Bidding War Roils Asian Markets (NYT)
Internet Firms Seek to Sway Lawmakers to See Benefits in
Wider China Trade (WSJ)
News Corporation Studying Merger of Its Satellite Units (NYT)
DIGITAL DIVIDE
GORE PROPOSAL COULD NARROW 'DIGITAL DIVIDE'
Issue: Digital Divide
Speaking today from Morgan State University, a historically black college in
Baltimore, Vice President Gore will propose steps to provide Internet access
to every home across the country. The vice president will propose 1)
devoting more government-supported research to satellite and wireless
technologies to promote affordable access for rural communities; 2) using
the AmeriCorps program to expanded the network of volunteers in high-tech
community centers in low-income neighborhoods; and 3) extending the current
moratorium on Internet access charges that are based on per-minute usage.
Flat rates are seen as making Internet access less expensive and more
available to low-income consumers.
[SOURCE: USATODAY (7A), AUTHOR: Susan Page]
(http://www.usatoday.com/usatonline/20000215/1936241s.htm)
FEDERAL-STATE JOINT CONFERENCE ON ADVANCED SERVICES
Issue: Digital Divide
The federal and state members of the Joint Conference announced a schedule
of six field hearings to gather information on the status of deployment of
advanced services to all Americans. The field hearings will focus on two
goals in particular. First, the Joint Conference will seek information on
what data is available at the state level on the status of deployment of
advanced services. Second, the Joint Conference will seek examples of "best
practices" in successful deployment in communities. Transcripts of each
field hearing will be made available to the public as soon as possible after
each field hearing.
1st Hearing: Washington, DC March 8, 2000: broadband deployment in inner
cities.
Western Regional Field Hearing: Anchorage, Alaska April 17, 2000: the
relationship between advanced services deployment and economic development,
satellite deployment.
Midwestern Regional Field Hearing: South Sioux City, Nebraska April 19,
2000: Cable and fixed wireless deployment and deployment in rural areas More
info at www.fcc.gov/jointconference
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2000/nrcc0008.doc)
TELEVISION
SPEECH: "ANALOG" VALUES FOR THE DIGITAL AGE: LOCALISM, DIVERSITY, PUBLIC
OBLIGATION
Issue: Television
Assistant Secretary Greg Rohde addressed the National Association of
Broadcasters State Leadership Conference. There are a number of challenges
that make the future [of broadcasting] look a little frightening. 1)
Consolidation. In the last 4 years, the television and radio broadcast
industries has experienced a dramatic consolidation. There have been 257
media mergers since the passage of the Telecommunications Act of 1996. 2)
Television. Between 1995 and 1998, the number of commercial television
owners dropped 42%. The top 10 television station groups in 1998 controlled
almost 20% of all the commercial TV stations - and today, the top 25 groups
control more than one-third of all the TV stations in the country. 3) Radio.
There has been a 12% drop in the number of radio owners since 1996. Prior to
the Telecommunications Act, the top 10 owners owned a total of 194 stations.
Today, the top 10 groups own about 1,400 stations. The top 25 group control
more than 2,000. The two largest groups are seeking to merge and if that
occurs, one company will control more than 800 radio stations. There are 12
commercial radio stations in Billings, Montana. All but 2 religious stations
are owned by out-of-state entities. And, there are many more local markets
that have the same experience. One has to ask: what does this mean for
localism? 4) Conversion to Digital Transmission. I know that all of you are
mindful of the requirement to convert to digital television transmission by
the year 2003. While the conversion to digital is critical and I believe
that we must advance this conversion. I realize that it will be costly.
Especially for broadcasters in smaller markets. To many broadcasters, the
costs of converting to digital will exceed the total value of the stations.
Those operating in sparsely-populated large geographic areas will also have
to deal with translator stations - further complicating the transition.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/speeches/gregnab21400.htm)
ADVERTISING: EXECUTIVES HOPE INTERACTIVE TV AND CONSUMERS WILL CLICK
Issue: Advertising/Interactive Television
A new report by the Myers Group found that 94% of the 500 advertising
agency, media-buying and planning executives who responded to a survey said
it is important to explore interactive television advertising. "I've never
seen the advertising community respond so proactively to new technology,"
said Jack Myers, the chairman and chief executive of the Myers Group. "In
the past, they've been somewhat behind the curve in terms of new technology,
reactive rather than proactive, but with interactive television, they're way
ahead of the curve." A nascent market, "interactive television" covers
everything from full-fledged Internet access over television, as with
Microsoft's Web TV system, to more modest methods for viewers to interact
with television programming, such as clicking on an icon during a commercial
to order products.
[SOURCE: New York Times (C12), AUTHOR: Jane Levere]
(http://www.nytimes.com/library/financial/columns/021500interactive-adcol.ht
ml)
LOCAL TELEVISION SERVICES IN UNDERSERVED RURAL AND SMALL MARKETS
Issue: Television
NTIA is conducting a public inquiry into providing new opportunities for
viewers to receive local television services in underserved rural and small
markets. The scope of the inquiry covers the technological, economic, and
legal dimensions of the issue. A Federal Register notice
(www.ntia.doc.gov/ntiahome/ruraltvroundtable/fedreg21400.htm) announcing a
public roundtable and requesting comments was published on February 14 and
further information is available
(www.ntia.doc.gov/ntiahome/ruraltvroundtable).
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/roundtablepr.htm)
NBC AFFILIATE AGREES TO PAY FOR PROGRAMS
Issue:Television
In an unusual twist, Granite Broadcasting Corp. has agreed to pay NBC $362
million to carry its programming. This is the first time that an affiliate
has agreed to pay a network for programming. The usual relationship is the
other way around. In the case of Granite Broadcasting, the station was
losing its ABC affiliation this July, becoming independent, and facing
having to spend heavily to buy and create new programming to fill the void.
NBC was interested in the Granite deal because NBC needed to find a new
outlet in San Francisco to replace one of its longtime affiliates. Granite
will carry NBC programming on its San Jose station, which is located 40
miles outside of San Francisco. Other affiliates are quick to point out that
this groundbreaking deal should not be seen as a predictor for future
affiliate and network relationships. Networks have sought for years to end
the practice of paying affiliates to carry their programming.
[SOURCE: Wall Street Journal (A3), AUTHOR: Joe Flint]
(http://interactive.wsj.com/articles/SB950563697669072865.htm)
ANTISMOKING GROUP PUTS STOP TO TV ADS THAT GOT CRITICISM
Issue:Television
The American Legacy Foundation, which is behind the largest anti-smoking
campaign in history, is withdrawing two of its hardest hitting ads after
they drew criticism from members of the tobacco industry. "We're really
disappointed in this campaign. We don't think it serves the purpose of
educating the public on tobacco-related health issues," said Peggy Roberts,
a spokeswoman for Philip Morris. One of the ads shows body bags piling up
outside the headquarters of Philip Morris. While NBC and Fox have already
aired the ads, CBS disclosed that it had turned down the ads, saying that
their content was "objectionable" and "crossed the line." The ads had been
submitted to the big four broadcasters prior to receiving approval from
network censors. American Legacy is funded by the money the tobacco
companies have paid under a legal settlement with the states.
[SOURCE: Wall Street Journal (B8), AUTHOR: Gordon Fairclough and Joe Flint]
(http://interactive.wsj.com/articles/SB950576424602210520.htm)
TELEPHONY
JUSTICE DEPT. RECOMMENDS REJECTION OF SBC LONG-DISTANCE BID
Issue: Telephony
The Justice Dept. yesterday recommended that the FCC reject the company's
application for Texas. A reason cited was SBC's monopolistic grip on the
state's local telephone market. SBC "has not shown it is providing
nondiscriminatory access to its local line, " Joel I. Klein, the
department's antitrust chief, said in a statement. There is mounting
pressure on Capitol Hill to let former Bells sell long-distance service. In
December the commission approved Bell Atlantic's plan after the Justice
Dept. counseled against approval. Bell Atlantic's application was approved
after it agreed to establish a separate subsidiary to sell lines for DSL
service. While SBC has also agreed to such a subsidiary plan, the Justice
Department's recommendation is more strenuous than the December Bell
Atlantic argument. In December, Justice said the FCC could either reject the
Bell Atlantic filing or approve it with conditions. No similar caveat was
included in yesterday's SBC recommendation.
[Source: Washington Post (E5) Author: Peter S. Goodman]
(http://www.washingtonpost.com)
See Also:
JUSTICE DEPT. OPPOSES SBC IN TEXAS BID
Issue: Telephone Regulation
[SOURCE: New York Times (C8), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/yr/mo/day/news/financial/sbc-texas.html)
U.S. AGENCY URGES SBC BID BE DENIED FOR LONG DISTANCE
[SOURCE: Wall Street Journal (B6), AUTHOR: Kathy Chen]
(http://interactive.wsj.com/articles/SB950580872162179295.htm)
INTERNET
GE MENTORING PROGRAM TURNS UNDERLINGS INTO TEACHERS OF THE WEB
Issue:Internet
In an attempt to overcome lack of knowledge about the Internet, GE has
implemented a reverse mentoring program. Chairman and Chief Executive John
Welch has ordered his top 600 managers to reach within the ranks of GE for
"Internet junkies" that can teach established GE veterans to, "experience
the difficulties of ordering their own appliances online." Chairman Welch
also feels that the Internet is a wonderful mechanism to inject more youth
in GE's upper organization, "I find this to be a wonderful tool, among many
others, to change that equilibrium." The one-on-one sessions not only allow
senior managers to learn about the Internet, it also allows younger staff to
learn what skills a manager needs to run a big operation.
[SOURCE: Wall Street Journal (B1), AUTHOR: Matt Murray]
(http://interactive.wsj.com/articles/SB950573678484860919.htm)
YOU'VE GOT A CALL: AOL MAY BUY NET2PHONE
Issue: Internet
America Online is in talks to buy a controlling stake in Net2Phone, a leader
in putting phone calls over the Internet, people close to the discussions
say. The deal, which could be announced soon, would raise the profile of
Internet calling. AOL has long expressed an interest in the potentially
lucrative Internet phone business. The deal currently under negotiation
would raise AOL's current 5% stake another 48% giving the company a
controlling interest in Net2Phone. Net2Phone's stock gained 25% yesterday,
after CNBC aired news of the talks.
[Source: USA Today (1B) Authors: Shawn Young and Thor Valdmanis]
(http://www.usatoday.com/usatonline/20000215/1936312s.htm)
3-D SPORTS TUTOR: NOTHING BUT INTERNET
Issue: Internet
A new site, MySportsGuru.com, is using "motion capture" technology to
present animated demonstrations of legendary tennis coach Nick Bollettieri.
Similar instruction will be available from coaches and athletes in 11 other
sports, from golf to fly fishing and in-line skating, when the site launches
in April. The site is one of the first of what promises to be many using
realistic animation to offer instruction or provide simulations of a major
event -- knee surgery, for example. Motion capture animation, as its name
implies, captures the actual movements of an actor. For MySportsGuru.com,
Greg Hill, an associate of Bollettieri's donned a form-fitting black suit
with penny-sized beacons at the joints. More beacons were attached to his
racket, and Hill went through the motions of various tennis moves. His
movements were recorded by a series of digital cameras, resulting in a
cartoon with highly realistic movements. The technology is being
investigated as a means to make easy-to-follow tutorials to train consumers
to make repairs and upgrades to their computer systems. It is also being
looked at my medical schools and clinics as a means to educate patients
about complex procedures.
[Source: San Jose Mercury News Author: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/guru021500.htm)
MERGERS
MERGER DELAY COULD SAVE AT&T BILLIONS
Issue: Mergers
AT&T could delay closing its $60 billion acquisition of MediaOne as
executives discus whether a postponement could save the company billions of
dollars. Until recently, AT&T said the deal would close by late March. But
now, AT&T chief C. Michael Armstrong saying that the deal for the cable
company is expected to get regulatory approval before April and close by
July. AT&T executives hope a delay will lower the cash component of the
final purchase price for MediaOne. The cash value of the deal is tied to the
value of AT&T stock just before the acquisition is finalized. As long as its
share price is below $57, AT&T could have to pay up to $3.7 billion in cash
at closing. Shares closed Monday at $48 3/8, down 1/4. Yet, AT&T's market
value could improve in April as it introduces a tracking stock for its
wireless business. AT&T could buy itself some time to make up the difference
in its stock price by slowing down the rate at which it addresses concerns
the FCC has expressed in its ownership of so many cable companies.
[Source: USA Today (1B) Authors: Shawn Young and David Lieberman]
(http://www.usatoday.com/usatonline/20000215/1936320s.htm)
HEALTHEON AGREES TO BUY 2 COMPETITORS
Issue: Health Online/Mergers
Healtheon/WebMD Corporation agreed yesterday to buy two competitors, the
Medical Manager Corporation and CareInsite Inc., both led by the New Jersey
financier Martin J. Wygod, for $5.2 billion in Healtheon stock. Healtheon
wants to connect doctors, patients and insurers online and to cut the
enormous nonmedical costs of paperwork in the nation's trillion-dollar
health care system. "It makes Healtheon the 800-pound gorilla in the
marketplace, without a clear No. 2 player," said William McKeever, a health
care analyst at PaineWebber Securities. "Now they have to execute," he said,
meaning recruit enough doctors and health plans to make the business
profitable. Healtheon was founded by James Clark, the founder of Netscape.
[SOURCE: New York Times (C1), AUTHOR: Milt Freudenheim]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/15health.html)
See Also:
CREATING AN INTERNET HEALTH COLOSSUS
[SOURCE: Wall Street Journal (B1), AUTHOR: Ann Carrns]
(http://interactive.wsj.com/articles/SB950540028991628340.htm)
PRIVACY
PRIVACY ADVOCATES FAULT NEW DOUBLECLICK SERVICE
Issue: Privacy
DoubleClick, the Internet's leading advertisement placement company,
launched a new service yesterday and an educational campaign to help Web
surfers protect their privacy. "DoubleClick has led the online advertising
industry in providing Internet users with notice and the choice not to
receive targeted ads," said Kevin Ryan, president of DoubleClick Inc.
"Today, we are taking even more steps to educate consumers about their
privacy rights, give them the choice to opt out and make the Internet a more
secure environment for everyone. We are asking every Internet user to go to
privacy choices.org, learn about privacy and then make an informed choice
about whether you want to receive the benefits of personalized ads." Jeff
Chester, a spokesman for the Center for Media Education, called the
DoubleClick effort disingenuous. "This is a feeble attempt at crisis
management," Mr. Chester said. "They know that fewer than 3 percent of the
public opts out of anything."
[SOURCE: New York Times (C2), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/02/cyber/articles/15privacy.html)
See Also:
WEB SURFERS NOW CAN 'OPT OUT' OF BEING TRACKED
[Source: Washington Post (1B) Authors: Greg Farrell and Will Rodger]
(http://www.usatoday.com/usatonline/20000215/1936323s.htm)
DOUBLECLICK UNVEILS AN INITIATIVE TO PROTECT USERS' ONLINE PRIVACY
[SOURCE: Wall Street Journal (B6)]
(http://interactive.wsj.com/articles/SB950550727796148720.htm)
INTERNATIONAL
TALK OF A TELEPHONE BIDDING WAR ROILS ASIAN MARKETS
Issue: International/Mergers
Cable and Wireless HKT of Hong Kong and government-controlled Singapore
Telecommunications are doing the merger dance. But Pacific Century
CyberWorks, an Internet start-up that is barely 10 months old, has raised
money from shareholders and seems ready to make its own bid. CyberWorks is
run by 33-year-old billionaire Richard Li, son of Hong Kong multibillionaire
Li Ka-shing whose company, Hutchison Whampoa, is already a major force in
wireless phones there. Li Ka-shing also has enormous influence among China's
leaders. "China has always wanted the Hong Kong telecommunications situation
to be resolved," said Dylan Tinker, an analyst with Deutsche Securities in
Hong Kong. "This would keep majority equity ownership in China-friendly
hands."
[SOURCE: New York Times (C4), AUTHOR: Wayne Arnold]
(http://www.nytimes.com/yr/mo/day/news/financial/hongkong-telecom.html)
INTERNET FIRMS SEEK TO SWAY LAWMAKERS TO SEE BENEFITS IN WIDER CHINA TRADE
Issue: International/Lobbying
"One of the best ways to correct human-rights violations is through
communication, information and open dialogue," said Daniel Burton, vice
president of government relations for Novell. "Once you have a very strong
and wide Internet community inside China, those kinds of discussions are
going to start happening." [Yes, another problem that we can trust the
market to solve] A coalition of Internet-related companies -- including
Novell, America Online, Cisco Systems, 3Com and DoubleClick -- is trying to
persuade skeptical lawmakers that moves to expand trade with China also will
promote democracy and human rights.
[SOURCE: Wall Street Journal (A8), AUTHOR: Michael Phillips]
(http://interactive.wsj.com/articles/SB950574484389430718.htm)
NEWS CORPORATION STUDYING MERGER OF ITS SATELLITE UNIT
Issue: Satellite
News Corp hopes that its satellites -- which already provide television in
Europe, Latin America, Asia and Australia -- could be used to provide
high-speed data transmission as well. The company is considering
consolidating all its satellite-related businesses into a single company
that could provide Internet access around the globe.
[SOURCE: New York Times (C12), AUTHOR: Andrew Pollack]
(http://www.nytimes.com/yr/mo/day/news/financial/murdoch-satellite.html)
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