Communications-related Headlines for 2/16/2000

MEDIA & SOCIETY
A Newer, Lonelier Crowd Emerges in Internet Study (NYT)
Grassroots.com Aims For Common Ground Online (SJM)
Arizona Plan for Online Voting Faces Suit Charging
Unfairness to Minorities (WSJ)

BROADBAND
Consumer Groups Call For Congressional Hearings Into FCC's Failure to
Promote Open Access (CFA)

INTELLECTUAL PROPERTY
Web Side Of Viacom's Mtv Is In Dispute With Record Firms
Over Licensing Fees (WSJ)
Video on the Internet (House)

SATELLITE
EchoStar Sues, Saying Satellite Monopoly is DirecTV's Motive (USA)

UNIVERSAL SERVICE
Speech: Support for Ensuring High-Quality Rural Telecommunications (FCC)

INTERNATIONAL
Latin Internet Craze Sets Off Alarm Bells (WSJ)
EC Pressures Nations to Knock Down Local-Phone Barriers
to Internet (WSJ)
Deutsche Telekom Buys Stake In Club Internet To Expand Scope (WSJ)

PRIVACY/SECURITY
Web Security, Privacy Are Goals of CIA Effort (WP)

PUBLISHING
Thomson Decides to Stop the Presses (WSJ)

MEDIA & SOCIETY

A NEWER, LONELIER CROWD EMERGES IN INTERNET STUDY
Issue: Media & Society/Internet
This was delivered to you via the Internet; so, you're an Internet user.
You're obsessed with the Net. You spend less time with friends and family,
less time shopping in stores [gasp!] and more time working at home after
hours. These are the findings of a Stanford study to be published today. In
short, "the more hours people use the Internet, the less time they spend
with real human beings," said Norman Nie, a political scientist at Stanford
University who was the principal investigator for the study. 60% of regular
Internet users surveyed watch less television and one-third say they spend
less time reading newspapers. The survey of 4,113 individuals over 18 found
that 55% of those polled had Internet access at home or work and that 43% of
households were online.
[SOURCE: New York Times (A1), AUTHOR: John Markoff]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/16online.html)
See Also:
A WEB OF WORKAHOLIC MISFITS?
"Can you get a hug, a warm voice, over the Internet?" asks Stanford
researcher Norman Nie.
[SOURCE: Washington Post (A1), AUTHOR: David Streiterfeld]
(http://www.washingtonpost.com/wp-dyn/articles/A55210-2000Feb15.html)
NET STUDY WILL FUEL DEBATE OVER SOCIAL EFFECTS
[SOURCE: San Jose Mercury Interactive, AUTHOR: David Plotnikoff]
(http://www.mercurycenter.com/svtech/columns/modemdriver/docs/dp021600.htm)

GRASSROOTS.COM AIMS FOR COMMON GROUND ONLINE
Issue: Advocacy
Tired of that pothole in your street, but don't know who can help get it
filled? Perhaps, Grassroots.com (www.grassroots.com), an Internet service
launched Tuesday can be of help. The sponsors of the site are banking on
the idea that Americans are not disengaged and disaffected -- merely
disconnected. The site focuses primarily on local issues, serving as an
electronic meeting ground for citizens, politicians and activists. Sponsors
say the focus will be local, not on national efforts. The service will be
free to everyday citizens, but politicians, lobbyists and activist groups
will be charged. Advertisers and fundraisers will also have to pay. Sponsors
of the site are an unusual blend of non-profit and for-profit organizations.
A board of
advisers includes John Sununu, former New Hampshire governor and President
George Bush's chief of staff; Geraldine Ferraro, the Democratic vice
presidential candidate in 1984; Mike McCurry, President Clinton's former
press secretary; and Tony Blankley, former press secretary to ex-House
Speaker Newt Gingrich.
[SOURCE: San Jose Mercury Online, AUTHOR: Robert Boyd]
http://www.mercurycenter.com/svtech/news/indepth/docs/grass021600.htm

ARIZONA PLAN FOR ONLINE VOTING FACES SUIT CHARGING UNFAIRNESS TO MINORITIES
Issue: Digital Divide
Last month, the Virginia-based Voting Integrity Project, a ballot watchdog
group, filed a federal lawsuit in Arizona to prevent the Democratic Party
there from allowing Internet voting during the March 11 primary. Under the
plan, primary voting would only be at official polling stations, but during
the early voting stage (March 7-10), registered voters could cast their
Internet ballots from anywhere. VIP charges that online balloting could be
unfair to minorities because they tend to lack access to the Internet.
Deborah M. Phillips, president of VIP believes that disparities in home
computer access for minorities would "dilute and obstruct minority voters."
Mark Fleisher, Arizona Democratic Party Chairman, says the party plans to
open around 20 online-balloting stations, most of them near [near?] minority
neighborhoods during the early voting stage. "The Internet will do more to
increase participation than anything since the repeal of the poll tax," said
Fleisher. Ms. Philips believes that the appeal of home voting still creates
inequities, "Whenever you are making voting more convenient for one
homogenous segment of the population, you are creating bias." Courtroom
arguments will be heard Feb. 29.
[SOURCE: Wall Street Journal (B13A), AUTHOR: Robert Cwiklik]

BROADBAND

CONSUMER GROUPS CALL FOR CONGRESSIONAL HEARINGS INTO FCC'S FAILURE TO
PROMOTE OPEN ACCESS
Issue: Broadband/Open Access
Four national and state consumer
groups today sent a joint letter urging Representatives John Dingell (D-MI)
and Ed Markey (D-MA) to press for Congressional hearings into the failure of
the Federal Communications Commission (FCC) to promote open,
non-discriminatory access to the broadband Internet. In the letter, the
Consumer Federation of America (CFA), Consumers Union, Michigan Citizen
Action, and the Massachusetts Consumers' Coalition detail how the FCC's
abdication of responsibility on the issue of open access has jeopardized the
ability of the Internet to function as a ubiquitous, open means of
communications and commerce in the 21st Century. The letter also explains
why recent industry developments -- particularly the proposed merger of
Internet service provider America Online (AOL) and Time Warner and the
private negotiations recently culminated between AT&T, Mindspring and others
-- only serve to reinforce the need for clear and vigorous federal policy to
ensure open access in the future.
The groups' letter comes at a critical juncture in the national "open
access" debate. Since announcing its proposed merger with Time Warner, one
of the nation's largest cable TV service providers, AOL has abandoned its
earlier policy to aggressively fight for open access in cities and counties
nationwide. Notwithstanding AOL's departure, the battle for open access
grows, as jurisdictions in Montgomery County, Maryland, and Arlington,
Virginia, among others, have begun to examine the issue. The issue will
surface as well in many of the some 2500 jurisdictions where Time Warner
will seek to transfer its cable TV license to the newly-merged company.
[SOURCE: Consumer Federation of America]
(www.consumerfed.org/internetaccess)

INTELLECTUAL PROPERTY

WEB SIDE OF VIACOM'S MTV IS IN DISPUTE WITH RECORD FIRMS OVER LICENSING FEES
Issue: IP
MTVi Group, the Internet unit of Viacom's MTV Networks is fighting with
record companies over licensing fees. In a Securities and Exchange
Commission filing related to its initial public offering, MTVi disclosed
that had received letters from Sony and EMI complaining about MTVi's
Internet radio business. In the filing, MTVi says that the letters demanded
they "cease our use of their music in these manners and pay for our past
use." One of the letters also warned MTVi that it was "streaming full-length
music videos without authorization," MTVi said in the filing. MTVi said it
believed its use of the videos is "authorized by the terms" of its existing
deal with the record company, although most of the big record companies have
argued that their video-licensing deals with the MTV cable network don't
extend to MTV's Web sites. The recording industry contends that any digital
music service that "is interactive" requires a special license negotiated
individually with record companies, according to Steven Marks, senior vice
president of business affairs with the Recording Industry Association of
America, a lobbying group. Such a license would likely carry a higher fee
than the standard license to be granted by record companies to digital services.
[SOURCE: Wall Street Journal (B8), AUTHOR: Martin Peers]
http://interactive.wsj.com/articles/SB950658973653961685.htm

VIDEO ON THE INTERNET
Issue: Broadband
Live Audio Broadcast today (10am Eastern), Video on the Internet:
iCraveTV.com and Other Recent Developments in Webcasting. Subcommittee on
Telecommunications Trade & Consumer Protection Hearing
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/bd180ea23b07fe3f85256885007b3abe?OpenDocument)

SATELLITE

ECHOSTAR SUES, SAYING SATELLITE MONOPOLY IS DIRECTV'S MOTIVE
Issue: Satellite TV
EchoStar has sued DirecTV and partners Hughes Network Systems and Thomson
MultiMedia, charging them with anti-competitive actions. In the antitrust
suit, filed recently in Colorado District Court, EchoStar, says DirecTV is
attempting to monopolize the market in several ways, including, paying
retailers to boycott Dish Network systems, and threatening to cut off
shipments of other products, such as high-definition TVs, to dealers
stocking Dish Network systems. DirecTV and EchoStar lead the industry:
DirecTV has 8 million subscribers and EchoStar has 3 million. Because of
their dominance, the lawsuit hints that the internal squabbling within the
industry could hamper it in its continuing war with the cable industry.
"Satellite is doing a pretty good job competing against cable, but ultimately
it would help consumers if the industry were united,'' said Bob Scherman,
editor and publisher of Satellite Business News, an industry publication.
[Source: USA Today (3D) Author: Mike Snider]
(http://www.usatoday.com/usatonline/20000216/1940037s.htm)

UNIVERSAL SERVICE

SPEECH: SUPPORT FOR ENSURING HIGH-QUALITY RURAL TELECOMMUNICATIONS
Issue: Universal Service
FCC Commissioner Susan Ness in a speech to the National Telephone
Cooperative Association emphasized the importance of a modern
telecommunications infrastructure for rural communities. Ness praised rural
carriers for "finding innovative solutions to overcome obstacles of distance
and terrain" to provide quality services to their communities. Discussing
universal service, Commissioner Ness noted that "even as Congress sought in
the Telecommunications Act of 1996 to promote competition, Congress also
reaffirmed our nation's commitment to universal service. That was the deal.
And we must never forget it." Ness pledged that "I will not vote to apply
any model to rural carriers unless and until I am convinced that it makes
sense for rural America." Commissioner Ness stressed the need to address
universal service and access charge reform for rural carriers, noting that
"regulatory uncertainty is a major impediment to investment."
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2000/nrcc0009.html)
(http://www.fcc.gov/Speeches/Ness/2000/spsn002.html)

INTERNATIONAL

LATIN INTERNET CRAZE SETS OFF ALARM BELLS
Issue: International
At the two-day conference on the Latin Internet, a cautionary tone rules.
"It isn't enough to open shop and plant a flag. Online ventures will have
to focus much more on long-term survival rather than rapid arrival," said
Jupiter analyst Lucas Graves. While investors assume that the U.S. Internet
growth model can be easily transplanted to Latin America, others protest
that it's just not that easy. The region suffers from low computer and
credit-card use, two areas that were very important for U.S. Internet
growth. Many Spanish-language sites are playing the waiting game, turning
to U.S. Hispanics as their initial market.
[SOURCE: Wall Street Journal (A23), AUTHOR: Thomas Vogel Jr. and Pamela
Druckerman]
(http://interactive.wsj.com/articles/SB950656919397084701.htm)

EC PRESSURES NATIONS TO KNOCK DOWN LOCAL-PHONE BARRIERS TO INTERNET
Issue: International
The European Commission is asking governments to participate in full
local-loop unbundling and fair pricing to increase competition in the
critical "last mile" that connects local homes and offices to the Internet.
The request underlies the EU's ambition to expedite electronic commerce in
Europe by eliminating competitive roadblocks to Internet access. The EC is
looking for a response by December, after which it plans to draft a formal
directive if governments haven't moved quickly enough. The request comes at
the same time that the EC is putting the finishing touches on their eEurope
plan, which is a set of sweeping changes to the rules that govern EU
telephone, cable and satellite services. The EU has lagged behind in
Internet use because of high local-phone charges and a lack of competitive
offers in high-speed access. "The local-access network remains one of the
least competitive segments of the liberalized telecommunications market,"
says the document.
[SOURCE: Wall Street Journal (A23), AUTHOR: Brandon Mitchener]
(http://interactive.wsj.com/articles/SB950653182485231123.htm)

DEUTSCHE TELEKOM BUYS STAKE IN CLUB INTERNET TO EXPAND SCOPE
Issue: International
Deutsche Telekom announced Wednesday that it is purchasing most of Club
Internet of France. Club Internet is currently owned by Lagardere, the
French arms-to-media conglomerate. Lagardere will receive around 6.5% of the
capital stock, of T-Online, Deutsche Telekom's Internet subsidiary. In
exchange Deutsche Telekom will receive a 99.9% share of Club Internet. The
acquisition will give the German phone company a base in the French market
and aid in its efforts to put its Internet business on an international
footing. T-Online, Deutsche Telekom's online service, is Europe's largest
Internet-service provider, but has remained a German service with only
German-language content. DT also confirmed the acquisition of a controlling
51% stake in BetaResearch, a company that develops set-top-box technology
for digital pay-TV. The venture will develop and market hardware and
software for television-oriented multimedia platforms, with the focus on
set-top boxes for digital television, multimedia services, broadband
Internet and video-on-demand services.
[SOURCE: Wall Street Journal (A23), AUTHOR: William Boston and Charles
Fleming]
http://interactive.wsj.com/articles/SB950652286185079285.htm

PRIVACY/SECURITY

WEB SECURITY, PRIVACY ARE GOALS OF CIA EFFORT
Issue: Security
In-Q-Tel, the Central Intelligence Agency's new venture capital fund, and
Science Applications International Corp. (SAIC) have entered into a $3
million agreement to develop software designed to protect Web sites against
"denial of service" attacks and to make computer addresses invisible to
"sniffer" programs. Congress and the CIA invested $28 million last year in
In-Q-Tel, hoping to help generate advanced analytic and spy technologies --
and cement relationships between the CIA and computer entrepreneurs.
[SOURCE: Washington Post (A21), AUTHOR: Vernon Loeb]
(http://washingtonpost.com/wp-srv/national/feed/a56878-2000feb16.htm)
See Also:
SET STANDARDS, DON'T ISSUE FIATS, HIGH-TECH CHIEFS TELL CLINTON
[SOURCE: Wall Steet Journal (A4), AUTHOR: Neil King and David Cloud]
(http://interactive.wsj.com/articles/SB950637246519422072.htm)

PUBLISHING

THOMSON DECIDES TO STOP THE PRESSES
Issue: Publishing
Thomson, in deciding to focus more on electronic publishing than print
publishing, is putting all but one of its 130 newspapers, as well as other
print assets, up for sale. "We see the Internet as the next platform of the
future, so all our major business-development initiatives are moving towards
Internet-based products and services," said Thomson's President and CEO
Richard Harrington. Among Thomson's five operating divisions, newspapers
ranked last by revenue in the third quarter of 1999. Thomson has said that
it prefers to sell its newspaper division to a single buyer, noting that the
Gannett Company, the publisher of the USA Today, is the leading potential
purchaser. The company has decided to keep the Globe and Mail newspaper,
one of the two leading Canadian newspapers.
[SOURCE: Wall Street Journal (A3), AUTHOR: Mark Heinzl]
(http://interactive.wsj.com/articles/SB950617474643573061.htm)

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