ADVANCED SERVICES
New Threats to Open Access on the Internet (CME)
We've Come Unplugged: Speedy Wireless Access to Net Connects
With Firms, Customers (USAToday)
Deployment of Advanced Telecommunications (FCC)
INTERNET
Internet Tax Panel's Chief May Accept Something Less
Than Permanent Ban (WSJ))
Cybercurtains Could Partition Off Wide-Open Internet (USA)
ED TECH
Crumbling Schools Have Trouble Getting Online (CyberTimes)
ONLINE JOURNALISM
Outcome Online Before Voting Is Done (NYT)
PRIVACY
A Privacy Firestorm at Doubleclick (WSJ)
European Union, U.S. Reach Accord Over Exporting Data (WSJ)
TELEVISION
Rivals WB, UPN Reach Agreement to Share Programs (WSJ)
ANTITRUST
Closing Arguments Underscore Gap Between Microsoft and Government (NYT)
INTERNATIONAL
Callahan Accruing German Cable Assets (WSJ)
ADVANCED SERVICES
NEW THREATS TO OPEN ACCESS ON THE INTERNET
Issue: Ownership
Harvard's Lawrence Lessig, ACLU's Barry Steinhardt, and others weigh the
impact of media mergers on the future of the Internet. National Press Club,
2/23/00, 1:00 PM (eastern). Cybercast available
(http://www.nogatekeepers.org/cybercast).
What are the implications of this increasing concentration of media
ownership? How will the Internet change in the new broadband environment?
What needs to be done now to protect the spirit of democracy and diversity
that we have long associated with the Internet?
[SOURCE: Center For Media Education]
(http://www.cme.org/press/000223briefing.html)
WE'VE COME UNPLUGGED: SPEEDY WIRELESS ACCESS TO NET CONNECTS WITH
FIRMS, CUSTOMERS
Issue: Wireless
"A new paradigm, which we call the wireless information age, is set to
emerge," says Salomon Smith Barney analyst Michael Rollins in a report on
mobile services. For now, it is coming in two flavors: mobile phones and
mini-computers that provide access to the Internet or corporate data on the
go and fixed wireless systems that bypass cable and phone networks to carry
the high-speed Net services to the home. How important are wireless
services? More than 30% of the U.S. population carries a mobile phone, and
Merrill Lynch says that number could jump to nearly 70% by 2003, spurred in
part by the ability to use the Internet and read or send e-mail over the
phone. Parts of Europe are already at 70%.
[SOURCE: USAToday (1B), AUTHOR: Shawn Young]
(http://www.usatoday.com/usatonline/20000223/1962425s.htm)
DEPLOYMENT OF ADVANCED TELECOMMUNICATIONS
Issue: Digital Divide
This Notice of Inquiry (Notice) begins the FCC's second inquiry into
"whether advanced telecommunications capability is being deployed to all
Americans in a reasonable and timely fashion." The first inquiry ended with
the conclusion that the overall deployment of advanced telecommunications
generally appeared reasonable and timely, given the early stage of
deployment. Since the First Report, deployment has increased substantially
and now high-speed services are used by more than a million residential
subscribers. In order to make informed judgments about whether deployment of
advanced telecommunications capability is reasonable and timely, the FCC
needs objective, empirical data about the current state of deployment. In
this Notice, the FCC seeks information in addition to industry surveys
proposed in the Data Gathering Proceeding (if that proposal is adopted) and
the Joint Conference on Advanced Services. The FCC urges industry, trade
associations, consumer groups, state and local governments, and others to
respond to the specific questions posed and to submit data for our
consideration.
Are advanced telecommunications capabilities being deployed to all
Americans? If not, where has deployment not reached? One of the goals is to
determine where advanced telecommunications capability has not yet been
deployed and then to assess whether deployment is reasonable and timely.
Where it has been deployed, how many subscribers are there? With the
economic analysis asked for in this Notice, the FCC also wants to understand
the basic economic conditions of the residential broadband market, such as
how much competition we can expect to develop in different areas of the
country (e.g., areas with low population density).
Comment Date: March 20, 2000
Reply Comment Date: April 4, 2000
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Notices/2000/fcc00057.txt)
(http://www.fcc.gov/Bureaus/Common_Carrier/Notices/2000/fcc00057.doc)
INTERNET
INTERNET TAX PANEL'S CHIEF MAY ACCEPT SOMETHING LESS THAN PERMANENT BAN
Issue: Internet Taxation
Virginia Governor James Gilmore (R), chairman of a federal commission on
Internet taxation, indicated that he might accept something less than a
permanent ban on taxing Internet commerce. Gilmore submitted a proposal for
the panel's final meeting next month whereby the panel would urge Congress
to pass a five-year ban on sales taxes on Internet commerce, and would urge
the states to adopt model legislation simplifying their tax structures.
After five years, Congress could decide whether or not to give states the
right to levy taxes on ecommerce. By suggesting that the states revamp their
tax structures, the plan could clear the way for Internet taxes. Currently,
states lack the authority to collect taxes on most cross-border sales
because the Supreme Court has held that the taxes are so complicated, their
collection imposes an unreasonable, and thus unconstitutional, burden on
interstate commerce. Gilmore, long in opposition of any Internet taxation by
the states, is expected to first offer a more stringent proposal, banning
new taxes altogether, and to suggest the milder version if the first one
fails.
[SOURCE: Wall Street Journal (B6), AUTHOR: Glenn Simpson]
(http://interactive.wsj.com/articles/SB951264853701225146.htm)
CYBERCURTAINS COULD PARTITION OFF WIDE-OPEN INTERNET
Issue: Internet
While the borderless nature of the Internet is one of its greatest features,
there are downsides as well. It can be hard to offer truly localized
services in a Web with no boundaries. Girl Scout troops, for example, cannot
use the Internet to sell cookies because there is no way to prevent
competition between troops representing different territories. The issue of
Internet boundaries gained recent attention when a Canadian company called
iCraveTV started retransmitting network TV broadcasts through the Internet.
While Canadian law seems to allow for such retransmission, U.S. law does not
and the site has been shut until iCraveTV can block U.S. residents from
getting the site's content. To the surprise of many, iCraveTV Vice President
Ian McCallum says that the company has developed a technology that can do
just that. Several experts say that it may, in fact, be possible to build
walls in the Net. Craig Forman, CEO of Myprimetime.com, says it could be
done, "But it would be very expensive. The costs would outweigh the
benefits." Jim Winget, chief technologist at Idealab, suggests that such a
development "is totally counter to the free flow of information the Internet
was designed to support. We could end up living behind a new form of Berlin
Wall."
[SOURCE: USAToday (3B), AUTHOR: Kevin Maney]
(http://www.usatoday.com/usatonline/20000223/1962377s.htm)
ED TECH
CRUMBLING SCHOOLS HAVE TROUBLE GETTING ONLINE
Issue: Ed Tech
Findings published last week by the United States Department of Education's
National Center for Education Statistics in a short survey on Internet
access in public schools, reported that the nation's poorest schools lagged
far behind others in classroom Internet access. Nationally, 63 percent of
classrooms had Internet access, according to the report, which was based on
a national survey of about 1,000 public schools last fall. But in the
poorer schools -- those where 71 percent or more of students were eligible
for free or reduced-price school lunches -- only 39 percent of classrooms had
Internet access. The figures were even more striking when the poorer
schools were compared to their wealthiest counterparts. About 74 percent of
classrooms in the nation's most affluent schools offer Internet access.
Overall, the survey found that most school buildings -- 95 percent - now
have an Internet connection, if not in a classroom, then in a library or
other room. The poorest schools were not far behind at 90 percent. But in
another measure, the ratio of students to computers with Internet access,
the figures again showed a marked disparity between rich and poor. The
national average was one Internet-capable computer for every nine students;
the wealthiest schools had one such computer for every seven students, and
the poorest schools had one for every 16. Linda Roberts, director of the
Department of Education's Office of Educational Technology, said that the
numbers may reflect the crumbling or antiquated state of many schools in
disadvantaged areas.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels (mendels( at )nytimes.com)]
(http://www.nytimes.com/library/tech/00/02/cyber/education/23education.html)
ONLINE JOURNALISM
OUTCOME ONLINE BEFORE VOTING IS DONE
Issue: Online Journalism
"Why am I publishing exit poll numbers before the polls close?" Slate's Jack
Shafer wrote on Friday. "Because the exit poll embargo that the media
observes is a big joke." Several hours before the Michigan polls closed
yesterday, Slate was reporting Sen John McCain's (R-AZ) victory over Gov
George Bush (R-TX). The Voter News Service does all the exit polling for
ABC, NBC, CBS, CNN, Fox and the Associated Press and Slate released the
numbers earlier than the other partners in the consortium. A representative
of one member of the governing consortium, who spoke on condition of
anonymity, said Voter News Service's lawyers had sent two letters to Slate,
calling the postings an unauthorized use and demanding that they be withdrawn.
[SOURCE: New York Times (A14), AUTHOR: Peter Marks]
(http://www.nytimes.com/library/politics/camp/022300wh-gop-exit.html)
PRIVACY
A PRIVACY FIRESTORM AT DOUBLECLICK
Issue: Privacy
As his company continues to scramble to address issues of privacy,
DoubleClick's Kevin Ryan suggests that the problems, in part, may have come
from the company's success. "A year ago we had a $1 billion market cap;
today it's 10 times that -- that draws attention," he said. "This is the
penalty for success." Still, Ryan's tone is much more concerned than it was
in November when he suggested that users' privacy fears would go away, just
as consumers' privacy fears related to credit cards went away as people
became more used to using them for purchases. Last week, DoubleClick
announced that it would hire a chief privacy officer, and that it would
engage PricewaterhouseCoopers to do regular "privacy audits." DoubleClick's
privacy woes came about not long after its acquisition of Abacus Direct,
which operates a database of some 2.9 billion purchase transactions,
allowing DoubleClick to add a name, as well as a large quantity of other
information to its existing database of information about Internet users'
online histories.
[SOURCE: Wall Street Journal (B1), AUTHOR: Andrea Petersen]
(http://interactive.wsj.com/articles/SB951255273722247542.htm)
EUROPEAN UNION, U.S. REACH ACCORD OVER EXPORTING DATA
Issue: Privacy
After more than a year of negotiations, the U.S. and European Union have
come to a tentative agreement on how to protect the privacy of EU citizens
when their personal data is exported here to the U.S. The deal would require
U.S. companies that collect and manipulate the personal data of European
citizens to sign up to virtually the same strict data protection standards
in force within the 15-nation EU. Companies that broke their word would be
guilty of "deceptive business practices" and subject to prosecution by the
Federal Trade Commission and other U.S. authorities. EU's data protection
standards give EU citizens the right to know about any collection of their
personal data, to correct any information that is inaccurate, to delete any
information that was collected illegally and to receive compensation for any
damage suffered as a result of illegal data processing.
[SOURCE: Wall Street Journal, AUTHOR: Brandon Mitchener]
(http://interactive.wsj.com/articles/SB95125505468735717.htm)
TELEVISION
RIVALS WB, UPN REACH AGREEMENT TO SHARE PROGRAMS
Issue: Television
Rival broadcasters from the two weakest networks, United Paramount Network
and Warner Brothers Network, agreed to provide programming to each other's
stations in six markets where they don't compete. Three Acme Communications
stations agreed to carry UPN programming while three of Viacom's Paramount
Station Group stations will carry WB programming. The unusual alliance is a
change from the sniping that has occurred between the two networks over the
years, usually over which of the two networks would survive the longest.
"We're not aiding and abetting the enemy," said Paramount Station Group
president Tony Cassara. The alliance grew out of the recent acquisitions by
both companies that led each other to acquire stations affiliated with the
other's network. Executives from Acme and Paramount didn't rule out
additional partnerships down the road. "It would be stupid to say no if we
can help each other and not hurt ourselves," said Mr. Cassara.
[SOURCE: Wall Street Journal (B8), AUTHOR: Joe Flint]
(http://interactive.wsj.com)
ANTITRUST
CLOSING ARGUMENTS UNDERSCORE GAP BETWEEN MICROSOFT AND GOVERNMENT
Issue: Antitrust
Microsoft had a final chance yesterday to convince Judge Thomas Penfield
Jackson not to issue an antitrust verdict against the company. The case
focuses on the company's "fights with competitors in a highly competitive,
fast-moving industry," asserted John Warden, the company's lead lawyer. "The
law," said Warden, "should not be rewritten to prevent Microsoft, or any
other company, from competing aggressively." David Boies, the Justice
Department's lead trial lawyer, countered Microsoft's argument: "We don't
say competition is a violation of the antitrust laws. Our allegations here
deal with the means by which they compete. They are seriously
anti-competitive." The court is likely to hold separate hearings on remedies
if, as expected, Jackson rules that Microsoft violated antitrust laws. "The
remedies have to be drastic and far reaching," said Richard Blumenthal, the
attorney general of Connecticut and one of the plaintiffs.
[SOURCE: New York Times (A1), AUTHOR: Joel Brinkley And Steve Lohr]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/23soft.html)
See Also:
MICROSOFT'S COPYRIGHT CLAIM DEBATED
[SOURCE: Wall Street Journal (A3), AUTHOR: John Wilke]
(http://interactive.wsj.com/articles/SB951239797845087468.htm)
LEGAL SCHOLAR COULD INFLUENCE MICROSOFT TRIAL
[SOURCE: Wall Street Journal (B1), AUTHOR: David Bank]
(http://interactive.wsj.com/articles/SB951256302354864666.htm)
INTERNATIONAL
CALLAHAN ACCRUING GERMAN CABLE ASSETS
Issue: Mergers/Acquisitions
Just after announcing that it was purchasing a 55% stake in Deutsche
Telekom's largest cable-TV network, Callahan Associates International is in
talks to take control of five additional Deutsche Telekom cable-TV networks.
"We are going to be the largest cable company outside the U.S.," said
Richard Callahan, president and chief executive. If the deal goes through,
Callahan is considering creating its own European Web portal or aligning
itself with America Online. Deutsche Telekom has said its nine regional
cable-TV companies will probably be sold by the end of this year. In light
of a German government tax change, Deutsche Telekom will put off
transferring control of the cable-TV companies until next January, when the
sale could be tax free.
[SOURCE: Wall Street Journal (A18), AUTHOR: William Boston]
(http://interactive.wsj.com/articles/SB951255766752740421.htm)
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