INTERNET
Internet Tax Panel to Hold Final Meeting (WP)
OWNERSHIP
Firms Waiting To Exhale As FCC Reconsiders Ownership Rules (USA)
Presidential Election Could Alter Shape of Tribune-Times
Mirror Deal (NYT)
MEDIA & SOCIETY
Selling To Kids Blurs Ethical Picture(USA)
Impact of Interactive Violence on Children (Senate)
Safe Harbor Proposal Made Public (EPIC)
JOURNALISM
Different Cycles For News Media Test New Media (NYT)
TELEPHONY
Consumer Groups Doubt AT&T's Pledge To Drop Fee (USA)
TECHNOLOGY & WORK
United Technologies Moves to Widen Education Service for Displaced
Workers
Corporate Intranets Help Bring Employees Into The Loop (USA)
FCC
Nomination of Susan Ness to be FCC Commissioner (Senate)
INTERNATIONAL
France Telecom Nears Mobilcom Pact (WSJ)
Telefonica and Prisa Move to Beef Up Spanish Media and Internet
Businesses (WSJ)
Internet Effort in Venezuela Moves Slowly Despite Potential (WSJ)
INTERNET
INTERNET TAX PANEL TO HOLD FINAL MEETING
Issue: Ecommerce
The Advisory Commission on Electronic Commerce opens its fourth and last,
two-day meeting in Dallas on Tuesday. The panel was created by the Internet
Tax Freedom Act of 1998 to try to make sense of the convoluted issue of
Internet taxes. The 1998 Act essentially put a moratorium on any new
Internet taxes until the commission made its recommendations. Meanwhile, all
existing sales taxes remain in force, making it very confusing for consumers
to figure out where and when to pay sales taxes on Internet purchases. The
commission is expected to deliver its final report to Congress on April 21,
but any real decisions are unlikely to be included. Utah Gov. Michael O.
Leavitt (R), who sits on the commission, cast doubts on the outcome of the
meeting. "I think it is likely that we will have no report at all," he said
because the commission must pass any recommendation by a super-majority of
13 votes out of 19. In effect, the combination of the votes needed to pass a
recommendation and the difficulty of sorting through the labyrinthine tax
laws of the various states make it likely that the commission will do
nothing other than to recommend extending the moratorium.
[SOURCE: The Washington Post (A4), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-dyn/articles/A42123-2000Mar19.html)
See Also:
ADVISORY PANEL ON INTERNET TAXES UNLIKELY TO REACH CONSENSUS
[SOURCE: New York Times (C1), AUTHOR: David Cay Johnston]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/20tax.html)
OWNERSHIP
FIRMS WAITING TO EXHALE AS FCC RECONSIDERS OWNERSHIP RULES
Issue: Ownership
The FCC's the cross-ownership ban, which was adopted in 1974 to ensure
communities have competing sources of news and opinion, may become a matter
of history with out so much as a public hearing. Regulators have made so
many waivers to current rules that "there's a legacy of deregulation through
the back door," says Media Access Project head Andrew Jay Schwartzman.
"There's a tradition of cynicism that comes out of that." As the Federal
Communications Commission approves several big deals on their radar screens,
the strength of the ownership rules will be put to the test. Last week, the
Tribune offered $6.4 billion for Times Mirror even though the combo would
violate a rule restricting ownership of a TV station and a newspaper in the
same market. Viacom, which has a controlling stake in UPN and is buying CBS,
is seeking a waiver from the rule barring a company from owning two national
broadcast networks. No matter who wins, few expect these ownership issues to
be addressed openly with lots of public participation.
"The government is a reluctant boundary setter," says analyst Scott Cleland
of the Legg Mason Precursor Group. "It's easier to do policymaking by
waiver."
[SOURCE: USAToday (), AUTHOR: David Lieberman]
(http://www.usatoday.com/usatonline/20000320/2049002s.htm)
PRESIDENTIAL ELECTION COULD ALTER SHAPE OF TRIBUNE-TIMES MIRROR DEAL
Issue: Mergers
A 1974 Federal regulation prohibits companies from owning both a newspaper
and a television station in the same market. Vice President Gore (D-TN)
favors the current rule while Gov George Bush (R-TX) is leaning against it.
The future of the rule will determine the ultimate shape of the
Tribune/Times Mirror merger as the combined company would control both
newspapers and television stations in New York, Los Angeles and Hartford.
Despite a great deal of lobbying, neither Congress nor the Clinton
administration seem likely to change the rule any time soon. VP Gore and
other officials say the rule prevents too much media power ending up in too
few hands. Congressional Republicans, like Sen John McCain (AZ), have tried
to repeal the rule. As for Gov Bush..."We have been assured through reliable
channels that the governor would support repeal of the rule," said John F.
Sturm, the president and chief executive of the Newspaper Association of
America. Shaun Sheehan, Tribune's top lobbyist in Washington, said he, too,
had heard that the governor's policy advisers had said Mr. Bush would repeal
the rule. [And you thought there was no difference between these guys]
[SOURCE: New York Times (C1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/library/financial/032000tribune-politics.html)
MEDIA & SOCIETY
SELLING TO KIDS BLURS ETHICAL PICTURE
Issue: Advertising
A controversial proposal, signed by 60 psychologists and psychiatrists, due
before an American Psychological Association committee Friday, suggests that
psychologists who help advertisers sell to children are unethical and the
APA should act to curb the growing trend. The letter asks the APA to
denounce this advertising consulting, amend the group's ethics code to set
limits on members' involvement in children's marketing, and launch an
educational campaign to help protect kids against manipulative advertisers
"This is a tremendous opportunity for psychologists to start to undo the
hyper-commercialism that's invading childhood," says Berkeley, Calif.,
psychologist Allen Kanner, who gathered most of the signatures. In a
national survey last year, about four out of five parents said ads put too
much pressure on kids to buy things. And nearly two out of three said their
kids measure self-worth more by possessions than the parents did at the same
age. Advertisers and some psychologists feel that the proposal blows the
problem out of proportion. "I suppose some people could nail us to the cross
on some of the candy work we've done," said Dan Acuff of YMS Consulting
Sherman. The proposal isn't likely to be acted on quickly, and will likely
go before other committees and be seriously debated, APA spokesmen say.
[SOURCE: USAToday (7D), AUTHOR: Marilyn Elias]
(http://www.usatoday.com/usatonline/20000320/2049037s.htm)
IMPACT OF INTERACTIVE VIOLENCE ON CHILDREN
Issue: Media & Society
Senate Commerce Committee hearing set for Tuesday, March 21, at 9:30 a.m. in
room 253 of the Russell Senate Office Building. Witness list to be
announced at a later time.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-140.html)
SAFE HARBOR PROPOSAL MADE PUBLIC
Issue: Privacy
The text of the proposal that would allow the transfer of personal
information on European citizens to companies operating in the United States
where there is no comprehensive privacy protection is now available. Public
comments in the US are due March 28. EU Article 31 Political Committee meets
at the end of March. (Note: there is still no formal agreement between the
US and the EU)
[SOURCE: Electronic Privacy Information Center]
(http://www.ita.doc.gov/td/ecom/menu1.html)
JOURNALISM
DIFFERENT CYCLES FOR NEWS MEDIA TEST NEW MEDIA
Issue: Journalism
News media alliances between newspapers and electronic outlets are
highlighting the different approaches to the presentation of content. These
differences are likely to become more apparent as newspapers and their
journalists provide stories for television, radio and the Internet. "When
you have even an inkling of a story," said John V. Pavlik, executive
director of Columbia University's Center for New Media, at the Graduate
School of Journalism, "there is incredible pressure to go with it because if
you don't, there's a high likelihood that somebody else will go with it and
scoop you." CNBC broke last week's story on a possible merger between eBay
and Yahoo with the help of a Wall Street Journal reporter. See the URL below
to see how the reporter found the story and how differently it was presented
on TV and in the newspaper.
[SOURCE: New York Times (C1), AUTHOR: Jim Rutenberg]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/20cnbc.html)
TELEPHONY
CONSUMER GROUPS DOUBT AT&T'S PLEDGE TO DROP FEE
Issue: Telephony
Consumer groups fear that AT&T may go back on a promise to eliminate minimum
monthly fees for low volume long-distance consumers. Last month, as part of
a proposal to revise phone bills, AT&T said it would get rid of the $3
minimum fee for its basic residential plan. But in a letter to the Federal
Communications Commission, AT&T says its promise to eliminate the minimum
was contingent on all competitors, with a combined market share of at least
10%, also not charging minimums. Consumers Union Director Gene Kimmelman
says AT&T is suggesting it will break its vow if either MCI WorldCom, which
has 20% market share, or many small long-distance companies do not go along
with the no-minimum pledge. He says such a scenario is quite likely since
many of the those carriers made no formal promise to cut minimum fees.
[SOURCE: USAToday (2B), AUTHOR: Paul Davidson]
(http://www.usatoday.com/usatonline/20000320/2048998s.htm)
TECHNOLOGY & WORK
UNITED TECHNOLOGIES MOVES TO WIDEN EDUCATION SERVICE FOR DISPLACED WORKERS
Issue: Jobs
United Technologies Corp., which already pays college tuition for its full-
and part-time employees, announced an expansion of its educational
assistance program. Last week, the company said it would extend its
existing program to four years for those employees who have lose their jobs
because work is being transferred at least 50 miles away. Previously,
employees falling into this category were eligible for only a year's
assistance. Mr. George David, United Technologies' chairman said that while
corporations can not guarantee jobs, they can give workers the tools to get
them. "You want the job change to be offensive instead of defensive," Mr.
David said. United Technologies began its employee-scholar program in 1996.
The program prepays 100% of the tuition costs, covers online programs and
allows employees three hours off a week to attend classes.
[SOURCE: The Wall Street Journal (A29B), AUTHOR: Karen Jacobs]
CORPORATE INTRANETS HELP BRING EMPLOYEES INTO THE LOOP
Issue: Jobs
Even as companies strive to make their mark on the Internet, they are also
turning inward and revamping the intranet Web sites to help keep their
employees up-to-date on company news, and, perhaps more important, happy.
While the corporate intranet was a cold sterile place as recently as a year
ago, things are changing. 80% of companies now use their intranet as the
primary method for delivering human-resources services, up from 50% just two
years ago, based on a new survey by Watson Wyatt Worldwide. And these uses
vary from allowing employees to tweak their 401(k) accounts, to a site where
employees of General Electric can buy discounted appliances. Not only is a
quality intranet good for business, it's also good for workers. "The portal
is one-stop shopping for everything. It's helping create a work-life
balance," says Steve Fecko, a senior vice president of marketing and
business development at RewardsPlus, a Web-based benefits company in
Baltimore.
[SOURCE: The USA Today (3B), AUTHOR: Stephanie Armour]
(http://www.usatoday.com/usatonline/20000320/2048971s.htm)
FCC
NOMINATION OF SUSAN NESS TO BE FCC COMMISSIONER
Issue: FCC
Senate Commerce Committee hearing scheduled for Wednesday, March 22, at 9:30
a.m. in room 253 of the Russell Senate Office Building. Senator Conrad
Burns (R-MT), Chairman of the Communications Subcommittee to preside.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/releases.htm)
INTERNATIONAL
FRANCE TELECOM NEARS MOBILCOM PACT
Issue: International
France Telecom is close to signing an agreement to take a 20 percent stake
in MobilCom of Germany for $3.89 billion. The deal also includes a joint
venture agreement, allowing both to bid for a German third-generation
cellular license. The German government plans to auction between four and
six national licenses for the third-generation Universal Mobile
Telecommunications System. France Telecom had originally struck a deal with
E-Plus Mobilfunk last December, only to see it crumble when BellSouth Corp.
and Royal KPN exercised pre-emptive rights to buy it. France Telecom has
repeatedly acknowledged that their aspirations to be a major European
telecommunications player had been handicapped by their lack of a foothold
in Germany. Mobilcom is one of Germany's largest alternative carriers and
has taken market share away from Deutsche Telekom.
[SOURCE: Wall Street Journal (A26), AUTHOR: Anita Raghavan, Kevin Delaney
and G. Thomas Sims]
(http://interactive.wsj.com/articles/SB953499287231744384.htm)
TELEFONICA AND PRISA MOVE TO BEEF UP SPANISH MEDIA AND INTERNET BUSINESSES
Issue: International
Telefonica and Prisa have both been scrambling in the recent months to build
up rival Spanish-language media and Internet groups. Telefonica, Spain's
dominant telecommunications operator, won a next-generation cellular license
last week to offer broadband Internet access for wireless devices. In a
parallel move, Prisa is part of a consortium that was awarded a license for
wireless local loop, which will enable it to offer local telephone service
and broadband Internet access for homes and small businesses. Earlier this
month, Prisa launched Inicia.com, an Internet access provider and portal for
Spain and Latin America. Telefonica just announced a $5.38 billion stock
offer for an independent television producer in the Netherlands, Endemol
Entertainment Holding. Telefonica made the offer because of Endemol's
successful strategy of bundling together the Internet and TV programming.
[SOURCE: Wall Street Journal (A26), AUTHOR: Carlta Vitzthum and John Carreyrou]
(http://interactive.wsj.com/articles/SB953279987249265084.htm)
INTERNET EFFORT IN VENEZUELA MOVES SLOWLY DESPITE POTENTIAL
Issue: International
The problems facing the rise of the Internet in Venezuela are the same as in
most developing economies, such as low telephone and computer penetration,
security concerns and product delivery. Computer penetration is only 16
percent, fixed-line phone penetration is 11 percent of the population, and
wireless totals only 16 percent. Security is a major concern for the 5
percent of all Venezuelans who use the Internet, only 20 percent of those
have bought something online. And a primary obstacle to e-commerce is that
only 3 percent of Venezuelans older than 18 have credit cards. Yet, the
number of online Venezuelans is set to surge to 3.8 million and online sales
to skyrocket to $348 million by 2005, says a report put out by Jupiter
Communications.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Charles Roth]
(http://interactive.wsj.com/articles/SB953510566424238772.htm)
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