Communications-related Headlines for 2/16/99

INTERNET
Free Speech and the Internet (NYT)
The Internet: A Reliable Source? (WP)
Privacy Groups Urge Intel Boycott (WP)
Web Pirates Reveal Soap-Opera Plots by Intercepting
Advance Transmission (WSJ)

BROADCAST
Broadcast Ownership Rules, and Regulations Governing
Television Broadcasting (NTIA)

MERGERS
Transfer of Licenses: Puerto Rico Telephone Company to
GTE Holdings (FCC)

INTERNATIONAL
Canada, U.S. in Magazine Dispute
News Corp., Telecom Italia Terminate Discussions To
Form Digital-TV Alliance (WSJ)
(WSJ)

ANTITRUST
Microsoft Trial Virtual Court (SJMerc)
Protesters Seek Refunds on Windows (NYT)

INTERNET

FREE SPEECH AND THE INTERNET
Issue: Free Speech
[Editorial] There is a delicate balance between protecting free speech and
shielding children from harmful materials on the Internet. Two recent laws
show that the Constitution can be damaged if a proper balance is not struck.
The first case involves the 1998 Child Online Protection Act, which would
have required all commercial sites that contain material "harmful to minors"
to verify the ages of all users. A federal judge has wisely issued a
preliminary injunction against the law. However, in the case of a Virginia
law prohibiting state employees from accessing sexually explicit material on
the Internet, a Court has disregarded First Amendment concerns. The Fourth
Circuit Court of Appeals upheld the Virginia law on the grounds that the state
has the right to control the work-related activities of its employees. The
authors suggest that better options exist in both cases. Filtering software
can better protect children than laws that infringe upon the free speech of
adults. And the state of Virginia could have avoided First Amendment harm by
enacting a law that prohibited non-job-related uses of the Internet, instead
of making a content-related distinction that will hamper legitimate research.
[SOURCE: New York Times (A18), AUTHOR: New York Times Editorial Staff]
http://www.nytimes.com/yr/mo/day/editorial/16tue3.html

THE INTERNET: A RELIABLE SOURCE?
Issue: Internet/Health
As many as 60 million adults used the World Wide Web last year for health
care information, according to a new poll of 1000 people by Louis Harris and
Associates made in January. Humphrey Taylor, chairman of the polling group,
said, "Health care is an enormous reason why people go online. And
amazingly, 91 percent said the last time they went online, they found what
they wanted." The polling company estimates 90 million people, 44 percent of
the adult population, use the Internet at home, work or school. Humphrey says
other studies have found the level of use is climbing fast as well, but
pollsters lack information on the quality of health information that is
being provided. The health sites most often visited online were created
either by medical societies or by patients' advocacy or support groups.
[SOURCE: Washington Post (Z17), AUTHOR: Marc Kaufman]
http://www.washingtonpost.com/wp-srv/WPlate/1999-02/16/042l-021699-idx.html

PRIVACY GROUPS URGE INTEL BOYCOTT
Issue: Privacy/Computer Technology
Critics of the upcoming Intel Pentium III chip sought Monday to widen their
boycott and enlist the Government in opposing the new technology.
Junkbusters Corp. and the Electronic Privacy Information Center sent letters
to privacy and consumer groups, including the American Civil Liberties
Union, urging them to request the Federal Trade Commission consider stopping
Intel from distributing the new technology. A separate letter was sent to
the FTC expressing fear for privacy on the Internet. Last month Intel
announced that the new Pentium chip will be able to transmit a unique serial
number internally and to websites that request it. The company said the
technology would help online merchants eliminate fraud. Some groups
protested that it gives companies the ability to trace a consumer's digital
footprints as they wander the Web. Robert Pitofsky, the chairman of the FTC,
has said in an interview that he does not believe the FTC has jurisdiction
in the matter. The Pentium III will be launched officially February 26.
[SOURCE: Washington Post (Online), AUTHOR: Ted Bridis (Associated Press)]
http://www.washingtonpost.com/wp-srv/business/daily/feb99/intel16.htm

WEB PIRATES REVEAL SOAP-OPERA PLOTS BY INTERCEPTING ADVANCE TRANSMISSION
Issue: Lifestyles!
The Web is stomping on an American institution--the soap-opera cliffhanger:
"closing the gap between content providers and consumers." A group called,
Spoiler 3 says they pick up a feed of "Days of Our Lives," as it's sent to
Canada a day earlier than it is broadcast in the US, transcribes the plot and
posts it on their website. Genoa City News website has a similar system for
posting "The Young and the Restless" plots. A viewer gets the feed from the
satellite and sends it in, says Brent Kellogg, manager of the site. A soap
executive confirmed that broadcasts are sent via satellite a day ahead to
Canada stations, to accommodate their schedule, but aren't broadcast until the
same time the next day in the US. "Publishing material sent privately via
satellite can carry a civil fine of as much as $2,000," a government-agency
person said. Doing it for a profit could raise the fine to $50,000. CBS
spokesperson, Dana McClintock says they are aware of the "net-spoilers," but
say it's not a problem. David Sperber, "Days of Our Lives" publicist is worried
that if people know what's going to happen they won't watch. Lynn Leahy, Soap
Opera Digest magazine editor, says no worries -- fans will still choose to watch
over reading plots on a screen. [And here we thought they performed all
those things live]
[SOURCE: Wall Street Journal (B15A), AUTHOR: Justin A. Oppelaar]
http://wsj.com/

BROADCAST

BROADCAST OWNERSHIP RULES, AND REGULATIONS GOVERNING TELEVISION BROADCASTING
Issue: Broadcast/Television
In a filing with the Federal Communications Commission (FCC), the
Department's National
Telecommunications and Information Administration (NTIA) [on Feb 12]
reiterates the importance of viewpoint diversity, localism and competition
for our nation's broadcast ownership policies.
"In light of the unprecedented level of media concentration in today's media
marketplace, NTIA urges the FCC to act decisively to preserve the core
principles of viewpoint diversity embodied in the First Amendment as well as
the fundamental values of localism and competition," Assistant Secretary of
Commerce Larry Irving said. The NTIA letter recommends a framework by which
to analyze whether proposed changes to the ownership rules further the
public interest. Applying this framework to the national and local ownership
rules currently under review by the FCC, NTIA
concludes that wholesale changes would harm the public interest, but
supports moderate relaxation in specific areas. See letter at
http://www.ntia.doc.gov/ntiahome/fccfilings/ownlet.htm
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/bcownerpr.htm

MERGERS

TRANSFER OF LICENSES: PUERTO RICO TELEPHONE COMPANY TO GTE HOLDINGS
Issue: Mergers
The Commission adopted a Memorandum Opinion and Order (Order) granting the
transfer of control of licenses and an international resale authorization
held by Puerto Rico Telephone Company (PRTC) and Telefonica de Puerto Rico,
Inc. (TPRI) from the Puerto Rico Telephone Authority (PRTA) to GTE Holdings
(Puerto Rico) LLC (GTE Holdings). This transfer of control will occur as
part of a transaction in which GTE Holdings will purchase from PRTA a major
ownership interest in PRTC and will obtain de facto control over PRTC. After
considering all of the issues raised by commenters in this proceeding, the
Commission concluded that the proposed transfer of control is in the public
interest. For more info: Meribeth McCarrick at 202-418-0654 or Jeffrey
Steinberg at 202-418-0896.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9008.html

INTERNATIONAL

CANADA, U.S. IN MAGAZINE DISPUTE
Issue: Magazines & Journals
Canadian Trade Minister Sergio Marchi said Canada will not abandon a bill
aimed at restricting US magazine operations in his country. He said the US
was out of line in threatening to retaliate against Canadian steel and
textile imports if the magazine bill is passed. The bill would penalize
foreign publishers that sell space to Canadian advertisers in special
Canadian editions of their magazines, but it would permit the magazines
themselves to continue to be distributed. Canadian officials and publishers
say these so-called split-run magazines take ad revenue away from Canadian
magazines. Canadian officials say the bill should be passed by the House of
Commons by early April. They will meet with US officials Friday in a third
round of talks to resolve the issue.
[SOURCE: Washington Post (Online), AUTHOR: David Crary]
http://www.washingtonpost.com/wp-srv/WAPO/19990215/V000559-021599-idx.html

NEWS CORP., TELECOM ITALIA TERMINATE DISCUSSIONS TO FORM DIGITAL-TV ALLIANCE
Issue: International/Digital TV
An agreement between Rupert Murdoch's News Corp. and Telecom Italia failed on
Friday, due to a dispute over soccer rights and political disfavor to Murdoch's
breaking into the Italian market. The agreement would have relaunched Telecom
Italia's pay-TV unit, Stream SpA by acquiring the entire package of Italy's
series of soccer matches for the next six years. In December, Italian
politicians, fearing a foreign dominance of Italian media, put a 60 percent
limit on broadcast rights that any pay-TV provider could acquire. This decision
stopped News Corp. from its ability to buy enough of Italian broadcasting to
get Stream off the ground, in the face of its French, Canal Plus SA. Friday,
Murdoch attempted to change the original agreement to get around the
legislation and was balked at by Telecom Italia Chairman, Franco Bernabe, who
put an end to the agreement. Analysts say the dissolved deal is an example of
the high barriers the Italian market presents for European digital-TV groups
for profit-making, given the abundance of high quality free TV. Chairman
Bernarde says the potential is open for further talks with other foreign
companies in reviving Stream, including AT&T.
[SOURCE: Wall Street Journal (B15), AUTHOR: Deborah Ball]
http://wsj.com/

ANTITRUST

MICROSOFT TRIAL VIRTUAL COURT
Issue: Antitrust
Several major publications, including the San Jose Mercury News, have been
doing an excellent job covering the Microsoft antitrust trial that resumes
today after a four-day layoff. Some news organizations also have created
useful sites in cyberspace. The Mercury Center has a
website that is worth visiting for the Microsoft trial story. In addition to
continuing updates on the ongoing trial, it features a virtual layout of the
courtroom that is unique. Take a look. After that you can visit their new
online destination for general business and technology news and information
called SiliconValley.com which opened today.
[SOURCE: San Jose Mercury News]
http://www.mercurycenter.com/business/microsoft/trial/

PROTESTERS SEEK REFUNDS ON WINDOWS
Issue: Computers
On Monday, over 100 protesters marched in front of Microsoft sales offices
around the world to demand refunds for unopened operating systems. The
marchers are upset over a clause in the Windows license that states that
users who do not agree to the terms can receive refunds for the preinstalled
software on their personal computers. Several users, however, have reported
difficulty in obtaining such a refund from Microsoft. "People pay extra
money for software they don't need, they don't want and they're entitled to
a return," said Rick Moen, one of the protest's organizers. Microsoft's
Windows runs on over 90% of all personal computers sold in the world.
[SOURCE: New York Times (C6), AUTHOR: Amy Harmon]
http://www.nytimes.com/library/tech/99/02/biztech/articles/16windows.html
See also:
SEEKERS FOR REFUNDS FOR 'WINDOWS' WARE FIND THE DOORS SHUT
[SOURCE: Wall Street Journal (B10), AUTHOR: David Blank]
http://www.wsj.com/

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