INTERNET
Small-Time Web Providers Do Big Business (WP)
A Circle Unbroken by Surveys (USA)
Capitol Advantage, Democracy Grow (SJM)
Privacy on the Internet (NYT)
The Child Online Protection Act (COPA)
Commission will Hold First Meeting (NTIA)
TECHNOLOGY & SOCIETY
Plato's Greek is Legible at Last on Modern PCs (WSJ)
BROADBAND
FCC Deals Blow to ISPs In Ruling on "Open Access" (WSJ)
Phone Companies Work on Ringing in Extra Lines (USA)
FCC
FCC Gets Static From Broadcasters, The Blind Over Low-Power Radio
Rules (WSJ)
Cellular Telephone Companies Push for Changes in Billing System on
Wireless Calls (NYT)
INTELLECTUAL PROPERTY
Major Copyright Holders Team Up to Lobby Congress on Piracy (NYT)
MERGERS/AQUISITIONS
European Regulators Frown on a Combined MCI-Sprint ( NYT)
Deutsche Telekom Sets $3 Billion Cable Deal (WSJ)
Germany's EM.TV to Acquire Muppets in a $680 Million Deal (WSJ)
ANTITRUST
Microsoft Trial Reconvenes Tuesday (NYT)
INTERNET
SMALL-TIME WEB PROVIDERS DO BIG BUSINESS
Issue: Internet
Small, mom-and-pop (sometimes literally) Internet Service providers are
thriving, even in the shade of giants like AOL and AT&T WorldNet. There are
currently 7,100 Internet service providers (ISPs) in North America, a 41
percent jump from a year ago. This comes as a shock to some experts. "I had
no idea these small outfits were still going to be around in the year 2000,"
said Shane Greenstein, an associate professor at Northwestern University's
Kellogg School of Management. "I swear I thought like everybody else that
this whole industry was going to consolidate." Many of the smallest ISPs are
run by moonlighting doctors, bookstore owners, members of the clergy and
retirees. These tiny companies (with less than 15,000 subscribers in 10 or
fewer area codes) are flourishing because they provide something that many
people find lacking in behemoths like AOL: personalized service. "My wife
and I answer the phones 24 hours a day," said John "Zeke" Brumage, owner of
Zeke's General Store Internet Services in southeast Arizona. "It rings at
the house and we call-forward to the cell phone when we're traveling."
[SOURCE: Washington Post (A1), AUTHOR: Ariana Eunjung Cha]
(http://www.washingtonpost.com/wp-dyn/articles/A5596-2000Feb18.html)
A CIRCLE UNBROKEN BY SURVEYS
Issue: Internet
[OP-ED]Although a recent Stanford University study says about people
becoming more socially isolated as they spend more time online. Elizabeth
Weise writes: "If we are not spending time with our families, if we're not
connecting with our neighbors, taking part in our community and immersing
ourselves in the complex web of interaction that makes up human society,
it's not the Net's fault. She It's our own." She goes on to say that "the
Internet isn't the first blow to community, only the latest." Pointing out
that every advance in communications technology has changed the dynamics of
community life. Weise argues that television has been far more destructive
than the Internet, because the Internet is bi-directional, creating an
environment rife with "grandparents e-mailing their grandchildren, knitters
sharing patterns, and gardeners of long acquaintance conversing about the
first bulbs of spring."
[SOURCE: USA Today (3D), AUTHOR: Elizabeth Weise]
(http://www.usatoday.com/usatonline/20000222/1958503s.htm)
PRIVACY ON THE INTERNET
Issue: Privacy
[Editorial] If businesses do not act to protect privacy online, the
development of e-commerce as well as non-commercial uses of the Internet
could be seriously threatened, warn the authors. The Electronic Privacy
Information Center, an advocacy group, has recently filed a complaint
against the leading Internet advertising company, DoubleClick, with the
Federal Trade Commission, alleging unfair trade practices in its tracking of
the online activities of millions of Internet users. DoubleClick places
"cookies" on individuals' computers to monitor the user's online activities,
and delivers targeted ads that are customized to a user's interests.
Responding to public criticism, DoubleClick is attempting to give users
easier ways to block the collection of information and has begun a campaign
to tell users how to opt out of tracking. "All users should get a meaningful
choice about how personal data are collected and used. Maintaining privacy
will be integral to the Internet's future, if only because consumers need to
feel safe enough to participate.
[SOURCE: New York Times (A26), AUTHOR: New York Times Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/22tue1.html)
CAPITOL ADVANTAGE, DEMOCRACY GROW
Issue: Political Discourse
"The Internet makes it easier and less intimidating to become politically
active," says Robert Hansan, founder of Capitol Advantage. "You can do it
from the comfort of your home, on your own time." The 13-year-old company
provides tools that allow citizens to connect with government via the
Internet. Visitors to the Web sites of the more than 400 organizations that
use the company's services -- America Online, The New York Times, USA
Today, League of Women Voters, National Rifle Association -- can track votes
cast by their elected officials or send an e-mail to a congressman. Some say
it's too early to judge the impact of the Internet on democracy. "We've got
another five years at least before we can assess whether the Internet is off
to realizing its potential of invigorating democracy," said Michael
Cornfield, head of the Democracy Online Project at George Washington
University. Cornfield hopes to spark a national debate on this topic this
week when he convenes the Online Democracy Task Force, which will be
composed of academics, business officials and politicians. Funded by the Pew
Charitable Trusts, the task force will examine topics such as the
commercialization of the Internet, Internet voting, and the "digital divide"
that has prevented many minorities and low-income individuals from accessing
technology.
[SOURCE: San Jose Mercury News, AUTHOR: Paul Tolme (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/234529l.htm)
THE CHILD ONLINE PROTECTION ACT (COPA) COMMISSION WILL HOLD FIRST MEETING
Issue: Internet
Congress passed the Child Online Protection Act (COPA), Pub. L. No. 105-277,
112 Stat. 2681-736 (1998), to restrict the commercial distribution of
material that is harmful to minors on the Internet. The Act established a
Commission to examine the extent to which current technological tools
effectively help to protect children from inappropriate online content. The
COPA Commission's first meeting, which is open to the public, will be held
from 10:30 a.m.-12:30 p.m. on March 7, 2000, at the U.S. Department of
Commerce, Room 4830, 1401 Constitution Avenue, N.W., Washington, D.C. 20230.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/new.html)
TECHNOLOGY & SOCIETY
PLATO'S GREEK IS LEGIBLE AT LAST ON MODERN PCS
Issue: Technology & Society
Microsoft Windows 2000 operating system now supports ancient Greek, a
language that hasn't been spoken for centuries. All users of the 23
different versions of Windows 2000 are now able to type using the polytonic
alphabet, invented roughly 2,100 years ago. "So what," you say? The choice
of including the alphabet wasn't without its political intrigues. The proper
way to codify the language of Plato has been debated for much of the past
two centuries. The Greek school system has a special system using television
signals for transmitting images of ancient-Greek-related questions on
standardized tests administered to high school students because computer
couldn't handle the polytonic lettering. Microsoft's technical fix is based
on a consortium-developed standard called Unicode, which assigns unique
character and keyboard codes for thousands of alphabets. Microsoft's
decision is being well received. Athen's powerful prelate, Archbishop
Christodoulos Paraskevaides, calls the new functionality a success "for the
Greek language, the Greek spirit and civilization." TV networks and
newspapers have led with headlines and editorials praising the Microsoft.
The Indic scripts used for Hindi, Tamil, Marathi, Konkani, and Sanskrit join
polytonic Greek in making their debut with Windows 2000.
[SOURCE: Wall Street Journal (B1), AUTHOR: Kevin Delaney]
(http://interactive.wsj.com/articles/SB951156341993027890.htm)
BROADBAND
FCC DEALS BLOW TO ISPS IN RULING ON "OPEN ACCESS"
Issue: Broadband
The Federal Communications Commission has denied the petition by Internet
Ventures, which sought to have the FCC give Internet concerns the right to
lease broadband cable pipes. The decision was expected but still dealt a
blow to proponents of a federal policy that would require cable companies to
provide access to online rivals that want to use their pipes to provide
high-speed Internet service. Internet Ventures and other small Internet
service providers fear that they will not be able to compete with bigger
ISPs to negotiate cable-access deals. Under existing law, larger cable
companies must set aside a certain amount of channel capacity for leasing to
unaffiliated video programmers. Internet Ventures had claimed in their
petition that Internet companies that provide video programming should also
enjoy leasing rights. The five FCC commissioners unanimously disagreed,
saying that Internet-access services don't constitute programming as defined
by the regulations. The FCC has been reluctant to impose any requirements on
cable companies, opting instead to let the marketplace work out solutions.
Internet Ventures President responded in a statement, "The FCC's regulation
today will deprive thousands of ISPs and their subscribers of the benefits
of the broadband revolution."
[SOURCE: Wall Street Journal (B18), AUTHOR: Kathy Chen]
(http://interactive.wsj.com/articles/SB95090139T717007428.htm)
PHONE COMPANIES WORK ON RINGING IN EXTRA LINES
Issue: Broadband
Phone companies are experimenting with providing businesses and consumers
with highly flexible phone and data services utilizing voice over DSL
technology. Using the technology, businesses and homes could add extra phone
extensions on a temporary or permanent basis without having to wait for a
phone company technician to install an extra line. The service, which won't
be widely available until later this year, is being marketed first to small
businesses. While most phone companies do not yet provide the service, small
companies, such as Network Plus, of Quincy, Mass. and Mpower of Rochester,
N.Y. already offer it in small markets. Network Plus' president, Rob Hale,
says that the company already has about 30 customers and receives hundreds
of inquiries a day. He said that a large-scale rollout would have to wait
until the technology is "100% road ready."
[SOURCE: USA Today (1B), AUTHOR: Shawn Young]
(http://www.usatoday.com/usatonline/20000222/1958548s.htm)
FCC
FCC GETS STATIC FROM BROADCASTERS, THE BLIND OVER LOW-POWER RADIO RULES
Issue: Low-Power Radio
The International Association of Audio Information Services is opposing
low-wattage noncommercial radio stations because they might disrupt the
reading service. When the National Association of Broadcasters claimed that
low-wattage radio stations would cause static interference with existing
radio stations, the FCC tested clock radios, car radios, Sony walkmans and
home stereos and came to the conclusion that static interference caused by
low-wattage stations was minimal. What the FCC didn't include as part of
their test was the $100 radios used by the blind to hear newspapers read on
the air. These radios lock onto a part of the spectrum called "subcarrier",
which is more susceptible to interference. The International Association of
Audio Information Services wants the FCC to test one of their radios before
the FCC begins licensing low-wattage radio stations this April. "The
greatest frustration is that I've seen no specific technical evidence that
there is any threat [to reading services]," said low-power advocate Cheryl
Leanza of the Media Access Project. "If this was a concern, they had plenty
of time to raise it." The FCC can modify or suspend the low-wattage rules
before they go into effect in April. Rep. Michael Oxley (R-Ohio) has
introduced a bill to kill low-power radio.
[SOURCE: Wall Street Journal (B9B), AUTHOR: Mark Wigfield]
(http://interactive.wsj.com)
CELLULAR TELEPHONE COMPANIES PUSH FOR CHANGES IN BILLING SYSTEM ON WIRELESS
CALLS
Issue: Wireless
A debate is raging at the Federal Communications Commission about whether
cellular telephone customers must continue to pay to receive calls as well
as to make them. Wireless companies have pressed for new rules that would
allow them to bring wireless calls under the same "calling party pays"
system used with the traditional telephone network. But local phone
companies and some consumer groups have argued against a change to the
current rules. Analysts suggest that eliminating wireless fees for incoming
calls -- as most other countries have done -- could go a long way toward
making wireless carriers viable long-term competitors to local phone
monopolies. "We're trying to get a level playing field with the local phone
companies," Andrew Sukawaty, chief executive of the Sprint Corporation's
wireless unit, Sprint PCS, said in an interview last week. "If you look at
almost every other country in the world, they all have calling-party- pays
as a standard. F.C.C. had been scheduled to vote on final rules for such a
system last Thursday, giving cellular companies the option of adopting
caller-pays billing systems, but the vote was canceled. The commission could
reach a decision in next few weeks, or perhaps as late as spring.
[SOURCE: New York Times (A1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/22phone.html)
INTELLECTUAL PROPERTY
MAJOR COPYRIGHT HOLDERS TEAM UP TO LOBBY CONGRESS ON PIRACY
Issue: Intellectual Property
A group of 30 groups and associations representing such diverse groups as
professional sports leagues, the software industry, and the film industry
sent a letter to Congress last week, explaining that they had banded
together to "to preserve, protect and defend the sanctity and concept of
copyright from all intruders." The group, known as The Copyright Assembly
said that it was formed to defend the holders of copyrights against those
who have a "brazen disdain" for the rules of copyright. Many members of the
new group originally came together in 1998 to push for the passage of the
Digital Millennium Copyright Act, which makes it illegal to crack encryption
technologies.
[SOURCE: New York Times (Cybertimes), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/02/cyber/capital/22capital.html)
MERGERS/AQUISITIONS
EUROPEAN REGULATORS FROWN ON A COMBINED MCI-SPRINT
Issue: Merger
The European Commission's antitrust regulators have "serious concerns" about
the plans of MCI Worldcom to acquire the Sprint Corporation for $130
billion. The Commission's competition ministry, which plans to carry out an
intensive four-month investigation into the deal, said it was worried that
the two companies would control nearly 50 percent of the worldwide market
for Internet backbones and that the combined company could dominate
telephone links between the United States and Europe. Susen Sarkar, a senior
analyst at the Yankee Group Europe, a research and consulting firm, said the
merger would do little to change the balance of power in Europe --
particularly given the rapid construction of high-speed fiber optic networks
by companies that include Mannesmann of Germany, KPN Qwest of the
Netherlands and Level 3 of the United States. "My feeling is that this sort
of concern doesn't really hold water in the context of all the fiber being
put in the ground," Mr. Sarkar said. The merger will also be scrutinized in
the United States by the antitrust division of the Justice Department as
well as the Federal Communications Commission.
[SOURCE: New York Times (C4), AUTHOR: Edmund L. Andrews]
(http://www.nytimes.com/yr/mo/day/news/financial/mci-europe.html)
DEUTSCHE TELEKOM SETS $3 BILLION CABLE DEAL
Issue: Merger/Cable
Denver investment company Callahan Associates International LLC should
announce today their 55% stake in Deutsche Telekom's cable-TV network
located in Germany's most populous state, North Rhine-Westphalia. The North
Rhine-Westphalia network is the largest of Deutsche Telekom's nine regional
cable-TV businesses. This deal will more than double, to 15 million, the
number of European homes served by Callahan Associates. Callahan plans to
upgrade the German cable-TV network to offer fast Internet connections,
video on command, interactive TV and phone services. Even though Europe's
population is 40% larger than the U.S., Europe lags behind in Internet
usage, having 34 million users compared to 101 million U.S. users. The
European Commission is encouraging deregulation of phone and cable-TV
networks to create opportunities for private investors. United Pan-European
Communications (UPC) is in talks with Deutsche Telekom to buy stakes in its
cable-TV networks located in the states of Hesse and Saar.
[SOURCE: Wall Street Journal (A21), AUTHOR: Leslie Cauley, William Boston,
Gautam Naik]
(http://interactive.wsj.com/articles/SB951167115939154020.htm)
GERMANY'S EM.TV TO ACQUIRE MUPPETS IN A $680 MILLION DEAL
Issue: Acquisitions
Have your kids brush up on their German because it could soon be the
language of choice for Kermit the Frog and members of Sesame Street. Jim
Henson Co., owner of "The Muppet Show" and "Sesame Street" among others, is
about to be bought by the German family-programming company EM.TV &
Merchandising for $680 million. "In one stroke we are a major player in the
world's biggest and most important media market," said EM.TV's founder and
chief executive Thomas Haffa. And since EM.TV promises to make no changes
in the management or operation of Jim Henson Co., we can assume that Kermit
and Big Bird will continuing speaking English.
[SOURCE: Wall Street Journal (A26), AUTHOR: Christopher Rhoads]
(http://interactive.wsj.com/articles/SB95114374110455945.htm)
ANTITRUST
MICROSOFT TRIAL RECONVENES TUESDAY
Issue: Antitrust
The Microsoft trial resumes today with arguments before Judge Thomas
Penfield Jackson to help him decide if the abuse of monopoly power he found
in November amounts to a violation of the nation's antitrust laws. On Nov. 5
Penfield Jackson declared that Microsoft Corp. used monopoly power derived
from its widely used Windows operating system to harm consumers, competitors
and other companies. His findings of fact, however, stopped short of any
legal conclusions. Instead, he set Feb. 22 for oral arguments to help him
decide how the law applies to his facts. "The market power conclusions are
relatively lopsided in favor of the government based on a lot of evidence,"
said Herbert Hovenkamp, a professor at the University of Iowa's college of
law. Microsoft is now in the position of arguing to the judge that his
findings of fact were based on an erroneous assumption and should be
reconsidered.
[SOURCE: New York Times (Online), AUTHOR: Reuters]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/22soft.html)
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