Communications-related Headlines for 2/17/99

**Thanks to the 475 respondents to the survey -- over 90% of you
said we should start charging people who don't reply --
Good Idea!

UNIVERSAL SERVICE/TELEPHONE REGULATION
Federal Preemption of State Universal Service Regulations Under
The Telecommunications Act of 1996 (FCLJ)
Cap-Sized: How the Promise of the Price Cap Voyage to Competition Was
Lost in a Sea of Good Intentions (FCLJ)

INTERNET
Latest Chat Topic At Aol: Links With Ebay (WSJ)
CNN WebMD To From Link On TV, Internet (NYT)
Altavista To Grow With Bid For Zip2 (SJ Merc)
Kennedy Center Expands Series To Internet (WP)
Playing the Name Game: A Glimpse at the Future of the
Internet Domain Name System (FCLJ)
To Net or Not to Net: Singapore's Regulation of
the Internet (FCLJ)

INTELLECTUAL PROPERTY
Digital Copyright Agreement for Video (NYT)

ANTITRUST
Microsoft Executive To Dispute Charge Of An Illegal Attempt
To Divide Market (WSJ)

UNIVERSAL SERVICE/TELEPHONE REGULATION

FEDERAL PREEMPTION OF STATE UNIVERSAL SERVICE REGULATIONS UNDER
THE TELECOMMUNICATIONS ACT OF 1996
Issue: Universal Service
Abstract from the editor: With the passage of the Telecommunications Act of
1996, Congress revamped federal universal service policy by requiring that
universal service support be explicit. The Act also provides that states can
supplement federal universal service support with state universal service
support. However, under section 254(f) of the Act, state programs must not
be "inconsistent with" the FCC's rules for implementing the Federal Plan.
Section 254(f) provides for express preemption of state universal service
plans but uses FCC rules as a measure for determining when preemption is
required. As a result, the case law governing express preemption by Congress
is in and of itself an insufficient guide for determining the scope of the
section 254(f) preemption power. To interpret section 254(f), case law
governing preemption by the FCC of state law must also be incorporated.
Thus, a three-pronged test is required to determine whether a state
universal service plan is preempted by section 254(f). This test should
provide a framework for determining whether state law is preempted by any
section of the Communications Act of 1934.
[SOURCE: Federal Communications Law Journal (p.303), AUTHOR: Mark Trinchero
& Holly Rachel Smith]
http://www.law.indiana.edu/fclj/pubs/v51/no2/v51no2.html 3/99

CAP-SIZED: HOW THE PROMISE OF THE PRICE CAP VOYAGE TO COMPETITION WAS
LOST IN A SEA OF GOOD INTENTIONS
Issue: Telephone Regulation
Abstract from the editor: This Article explores the Federal Communication
Commission's efforts to regulate into being marketplace economic forces
through price cap regulation. A comprehensive analysis of the history and
policies behind price cap regulation of LECs offers guidance for the future.
Ultimately, while progress towards local exchange competition has been made,
certain important adjustments should be implemented to allow price caps to
achieve their full potential. These changes, consistent with the original
theory of price caps, will in turn help speed the transition to competition.
[SOURCE: Federal Communications Law Journal (p.349), AUTHOR: Gregory J. Vogt]
http://www.law.indiana.edu/fclj/pubs/v51/no2/v51no2.html Available 3/99

INTERNET

LATEST CHAT TOPIC AT AOL: LINKS WITH EBAY
Issue: Ecommerce
AOL is entering talks with eBay, the online-auction company, with quite a
"sticky" website. Last year they had $16 million registered participants and
users averaged 27 minutes at the site each day. The two companies already have
a close relationship. In September, eBay agreed to pay AOL $12 million over
three years to link 100 of its sites to eBay. Possible connections between the
two companies could include shared content: eBay users would never actually
leave
AOL. Part of the motivation to work together for the companies is to expand
local marketing and fill gaps each company has. While AOL's Digital Cities is
strong in providing moving and restaurant listings, they have not found a way
to replace the local newspaper listings. While eBay is great at marketing and
selling easy-to-ship products, they has not been able to target local markets
for sales of bulky items, such as cars and furniture. If the two companies
merge, with AOL's 16 million subscribers, Yahoo and other online auctioneers
would have a hard time competing.
[SOURCE: Wall Street Journal (B6), AUTHOR: John R. Wilke and Keith Perine]
http://wsj.com/

CNN WEBMD TO FROM LINK ON TV, INTERNET
Issue: Health
The cable news channel, CNN, has just announced a deal with WebMD, an
Internet health-care information site. A One-stop library of medical
information, WebMD has agreed to share content with CNN, which runs an
average of 32 health-related stories a day. CNN will also promote the WebMD
site both on air and online. CNN felt that the health information was not as
"robust" as it could be. "We had to make a decision to build that center
ourselves or use something like WedMD," said Rob Tolleson.
[SOURCE: Wall Street Journal (B6 ), AUTHOR: Eleena De Lisser]
http://www.wsj.com
See also:
HEALTH WEB SITE MAKES CNN DEAL
[SOURCE: New York Times (Online), AUTHOR: The Associated Press]
http://www.nytimes.com/library/tech/99/02/biztech/articles/17cnn.html

ALTAVISTA TO GROW WITH BID FOR ZIP2
Issue: Mergers
Compaq Computer Corp. saying their "top strategic priority is Internet
leadership" said Tuesday it will buy Zip2 Corp., a creator of online city
guides. Compaq's AltaVista unit plans to use the new capability to expand
its capability as a "portal." The agreement to buy Zip2, which requires
regulatory approval, would give AltaVista local content from more than 160
newspapers and the opportunity to garner local advertising revenue in
markets throughout the nation. AltaVista ranked as the 12th-most popular Web
property in December, according to New York-based Media Metrix. Zip2 was
founded in 1996 and is yet to turn a profit. The price paid for it was not
disclosed but AltaVista executives said the price is higher than the $220
million it agreed to spend for Shopping.com a few weeks ago.
[SOURCE: San Jose Mercury News, AUTHOR: Monua Janah]
http://www.mercurycenter.com/svtech/news/indepth/docs/alta021799.htm

KENNEDY CENTER EXPANDS SERIES TO INTERNET
Issue: Arts
On April 1 the Kennedy Center in Washington, DC will begin daily live music
broadcasts on the Internet. The formal announcement will come this afternoon
and a test broadcast is scheduled for tomorrow at
http://kennedy-center.org/stage/millennium. By broadcasting the Millennium
Stage programs, the center will solidify its position as the only venue of
its kind in the country with a free performance every day on its stages and
now electronically. The concerts include some well-known acts, up-and-coming
artists, military bands, and local university and school groups. Typically
they attract anywhere from 400 to 7,000 attendees depending on the
performer. The center today will also unveil plans for two permanent
performance spaces for Millennium Stage, plus a show to mark the second
anniversary of the project on March 1 with Randy Newman and KC & the
Sunshine Band. [Wow, what a bargain: see KC -- for free!]
[SOURCE: Washington Post (C1), AUTHOR: Jacqueline Trescott]
http://www.washingtonpost.com/wp-srv/WPlate/1999-02/17/155l-021799-idx.html

PLAYING THE NAME GAME: A GLIMPSE AT THE FUTURE OF THE INTERNET DOMAIN NAME
SYSTEM
Issue: Internet
Abstract from the editor: As the Internet continues to expand into the top
global medium for commerce, education, and communication, individuals and
businesses are racing to claim their own unique Internet address or domain
name. Unlike the three-dimensional world, where many entities may share the
same name, on the Internet each domain name must be unique. As a result of
this uniqueness requirement, a variety of disputes and trademark issues have
arisen as individuals and entities compete for lucrative domain names on the
Internet market. These disputes have led to the submission of two proposals
for the overhaul of the current domain name system. This Note analyzes both
the Internet Ad Hoc Committee's and the United States' proposals, and
recommends additional provisions that should be implemented in order to have
a successful global domain name system for the future.
[SOURCE: Federal Communications Law Journal (p.403), AUTHOR: Rebecca W. Gole]
http://www.law.indiana.edu/fclj/pubs/v51/no2/v51no2.html Available 3/99

TO NET OR NOT TO NET: SINGAPORE'S REGULATION OF THE INTERNET
Issue: International/Internet Regulation
Abstract from the editor: Internet access has become almost commonplace, as
has the unfettered exchange of ideas through cyberspace. Several nations,
Singapore among them, have attempted to control their citizens' Internet
access in order to preserve and protect a desired national culture. A brief
overview of the technological means of Internet censorship reveals a hidden
truth: If Singapore truly wishes to become the technological giant of the
East, the government will have to sacrifice its desire to control Internet
content.
[SOURCE: Federal Communications Law Journal (p.430), AUTHOR: Sarah B. Hogan]
http://www.law.indiana.edu/fclj/pubs/v51/no2/v51no2.html Available 3/99

INTELLECTUAL PROPERTY

DIGITAL COPYRIGHT AGREEMENT FOR VIDEO
Issue: Intellectual Property
Five major computer and electronics firms have announced plans for a new
"watermark" standard to protect digital movies and videos from piracy. IBM,
NEC, Sony, Pioneer, and Hitachi have agreed on a single standard for a
binary code that will be embedded on every frame of a digital recording.
This digital watermark would allow legitimate copying of recorded material,
but prevent illegal copies from being made. DVD systems are expected to be
the first to use the new technology.
[SOURCE: New York Times (C2), AUTHOR: Rob Fixmer]
http://www.nytimes.com/library/tech/99/02/biztech/articles/17blue.html

ANTITRUST

MICROSOFT EXECUTIVE TO DISPUTE CHARGE OF AN ILLEGAL ATTEMPT TO DIVIDE MARKET
Issue: Antitrust
Daniel Rosen, Microsoft general manager, is expected to testify that the
allegation of the company's attempt to push aside Netscape is false. He will
testify that a June 21, 1995, meeting with Netscape was cordial, "with no table
pounding, threats or shouting." Other testimony suggests a good relationship
between the two, includes a document stating that Netscape co-founder Marc
Andreessen tried to hire Mr. Rosen after the meeting. In other questioning,
David Boies, the lead trial counsel for the government is expected to probe the
relationship between Microsoft and Compaq, a company that has enjoyed low
Window prices than other PC manufacturers. In other trial happenings,
yesterday, the judge said he had a "conceptual problem" understanding
Microsoft's video demonstration of the ease of downloading Netscape Internet
browser from AOL. Mr. Boise said the video skipped several steps and made it
look a lot easier than it is.
[SOURCE: Wall Street Journal (B6), AUTHOR: John R. Wilke and Keith Perine]
http://wsj.com/
See also:
Microsoft Understated Netscape's Handicap
[SOURCE: Washington Post (E1), AUTHOR: Rajiv Chadrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm
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