INTERNET
Europe Plans to Collect Tax on Some Internet Transactions (NYT)
Market Research on the Web Has Its Drawbacks (WSJ)
New Generation of Farmers in Argentina Plug into Internet, Reshape
the Business (WSJ)
TELEVISION
TV Networks Are Cluttering Shows With A Record Number Of Commercials
(WSJ)
Upfront Market For Kids' Programs Softens (WSJ)
ABC's TV Station in Houston Set to Go Dark in Cable Dispute (NYT)
TELEPHONY
Deceptive Advertising of Long Distance Telephone Services (FCC)
WIRELESS
SBC, BellSouth Discuss Joint Wireless Network (WP)
McCaw To Fuse Satellite-Phones Systems and Teledesic (WSJ)
AT&T's High Wireless Act: Can It Deliver the Web and a Dial Tone?
(WSJ)
MERGERS
Telecom Italia Puts Off Internet Merger (WSJ)
NBC Purchases a Minority Stake in Digital Entertainment Network
(WSJ)
INTERNET
EUROPE PLANS TO COLLECT TAX ON SOME INTERNET TRANSACTIONS
Issue: Internet
The European Commission is planning to collect sales taxes on music and
software purchased on the Internet, testing the ability to enforce national
tax laws in cyberspace. Proposals developed by the European Commission in
Brussels would have companies collect what is known as a value-added tax, a
type of sales tax, on products they sell and distribute over the Internet.
Value-added taxes -- whose rates vary by country from about 12 percent to
more than 20 percent -- are a major source of revenue for most European
governments. The taxes are currently collected by stores, mail-order
companies, or by customs officials when the products were to be shipped
across national boundaries. Under the proposals that are being debated in
Brussels, products sold on the Web would be taxed based on the rate in the
customer's country, meaning that companies operating in the United States
would have to collect the taxes on all sales to European customers. American
companies warn that efforts to extend the existing tax system would prove
extremely complicated and unenforceable. "This is an area that is still
developing, and Europeans should not rush in to develop a solution right
away," said Howard Liebman, a lawyer who heads up a working group on tax
issues at the American Chamber of Commerce in Belgium.
[SOURCE: New York Times (C4), AUTHOR: Edmund L. Andrews]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/02tax.html)
MARKET RESEARCH ON THE WEB HAS ITS DRAWBACKS
Issue: Internet
Companies are still wary of depending entirely on online market research.
The people on the Internet still tend to be male, whiter, richer, and more
technically savvy than the general populace. And while market-research
firms assure their clients that they weight the data to make up for these
discrepancies, companies are still uncertain. Focus groups are difficult to
conduct over the Internet since researches aren't able to watch for
important nonverbal signs such as sneering, grinning or chuckling. But one
advantage of online market research is the ability to access a narrow niche
of respondents quickly and easily. So, while online market research is
growing, it's expected to total $1 Billion by 2002, companies are continuing
with real-world research. "There are some traditional techniques that just
cannot be replaced," said Brent Seymour, AltaVista's director of market
intelligence
[SOURCE: Wall Street Journal (B4), AUTHOR: Erin White]
(http://interactive.wsj.com/articles/SB951952695752354154.htm)
NEW GENERATION OF FARMERS IN ARGENTINA PLUG INTO INTERNET, RESHAPE THE
BUSINESS
Issue: Internet
Internet sites are expected to bring huge changes to the $14 billion
agricultural industry in Argentina. Even though only 10% of Argentina's
farmers have Internet access, the number is expected to double as Internet
access prices tumble. While farmers use the Internet to access weather
updates, crop prices, and plague alerts, the real attraction is in the big
savings to be had in purchasing fertilizers, seeds and pesticides. Volume
discounts of 5% to 15% from big suppliers as Monsanto, Novartis and Dow
Agresciences are available. The savings are essential since Argentina's
farmers are burdened with high taxes and freight costs yet they do not
receive subsidies.
[SOURCE: Wall Street Journal (A12), AUTHOR: Craig Torres]
http://interactive.wsj.com/articles/SB951956120726955710.htm
TELEVISION
TV NETWORKS ARE CLUTTERING SHOWS WITH A RECORD NUMBER OF COMMERCIALS
Issue: Television/Advertising
The television networks are jamming a record number of commercials onto
their shows, according to a new report from the American Association of
Advertising Agencies and the Association of National Advertisers. The study,
which analyzed one week of broadcasts during May and another in November of
last year found that ABC led with the most clutter -- commercials,
public-service announcements and network promotions -- during prime-time
television broadcasts. The network averaged nearly 17 minutes of clutter
each hour during prime time. The four major networks were found to average
16 minutes and 43 seconds of clutter, an increase of about one minute over
the year before. "If the television industry doesn't recognize soon that
they are killing the golden goose, they will lose the battle for the
attention of consumers to their content and the attention of their
advertisers as the major advertising vehicle," warns Jon Mandel, co-managing
director of MediaCom, a unit of Grey Advertising Inc. ABC criticized the
accuracy of the study. "You can't draw a conclusion based on two weeks of
the year,'' said Alex Wallau.
[SOURCE: Wall Street Journal (B18), AUTHOR: Joe Flint]
(http://interactive.wsj.com/articles/SB951953527340678652.htm)
UPFRONT MARKET FOR KIDS' PROGRAMS SOFTENS
Issue: Television
Too many networks going after children, combined with reduced spending by
key advertisers, has most industry observers anticipating a soft market for
children's programming. "The supply exceeds the demand," says Shelly Hirsch,
CEO of Summit Media, an ad-buying firm that represents 15 video and toy
companies. Besides Nickelodeon and Time Warner's Cartoon Network, Walt
Disney's ABC, the WB Network, Fox and the Fox Family Channel are all
competing for a piece of the $1 billion advertisers spend annually on
television to reach kids. The kids market has recently been effected by
difficulties in the toy and cereal industries. As a result, networks are
increasing trying to convince advertisers that kids have influence beyond
what breakfast cereal is bought in their house.
[SOURCE: Wall Street Journal (B18), AUTHOR: Joe Flint]
(http://interactive.wsj.com/articles/SB951954535714645654.htm)
ABC'S TV STATION IN HOUSTON SET TO GO DARK IN CABLE DISPUTE
Issue: Television/Cable
Cable viewers in Houston are caught an increasingly bitter dispute between
Time Warner and the Walt Disney Company. The ABC television station in
Houston is scheduled to go dark early tomorrow morning in more than 650,000
homes served by the Time Warner cable system. Disney, ABC's parent, has
asked Time Warner to change its Disney Channel from a premium or pay cable
channel to a basic channel and to pay it 71 cents or every subscriber to its
cable systems, a relatively high figure. The outcome in Houston, which could
have effects in other places, will be closely watched for what it could mean
for future negotiations between broadcasters and cable operators as the
networks begin to use the growth of satellite television service as
leverage. Mike Luftman, the vice president for communications for Time
Warner Cable, labeled the Disney position "an extortion demand" and likened
Disney's tactics in choosing Houston as the city to fight out the dispute to
"terrorists taking hostages and then taking one out and shooting him in the
head."
[SOURCE: New York Times (), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/abc-cable.html)
TELEPHONY
DECEPTIVE ADVERTISING OF LONG DISTANCE TELEPHONE SERVICES
Issue: Telephone Reg/Adveritising
The Federal Communications Commission (FCC) and the Federal Trade
Commission(FTC) issued a joint Policy Statement to protect consumers from
unfair and deceptive advertising and marketing of long distance services,
including dial-around services -- often called "10-10" numbers. The Policy
Statement offers guidance to carriers to ensure their advertising is
truthful, complete and non- misleading. Additionally, it describes the kind
of factors the FCC will consider in determining whether to bring enforcement
action against carriers for deceptive advertising practices.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/2000/nrmc0009.html)
WIRELESS
AT&T'S HIGH WIRELESS ACT: CAN IT DELIVER THE WEB AND A DIAL TONE?
Issue: Wireless
AT&T's plan to use its digital wireless network to bring consumers local
phone service was hailed at its unveiling three years ago as "the
communications medium of the 21st century." But the plan is proving to be
more complex than originally thought. So far the service is only being used
by around 200 test households in suburban Dallas, none of whom are paying
for it. As with any new technology, there are certain details to be worked
out. One tester reported receiving a local radio station over his telephone.
There is also a fair amount of new equipment required for the service.
Consumers must have an antenna installed on the side of their houses to use
the service and those using it for Internet access, must install a special
card in their computers. Another problem is the two-hours it takes to
install the equipment Some testers seem to like the service so far,
particularly the speed. "It's faster," says 38-year-old tester, Paige Hafner
"It makes me want to use the Web more."
[SOURCE: Wall Street Journal (B1), AUTHOR: Nicole Harris]
http://interactive.wsj.com/articles/SB951953423635428968.htm
SBC, BELLSOUTH DISCUSS JOINT WIRELESS NETWORK
Issue: Mergers
SBC Communications, the largest of the nation's regional phone companies, is
talks to merge its wireless services business with BellSouth. The talks are
focusing on creating a joint network that would cover 40 of the 50 largest
U.S. cities, potentially putting telephone and Internet services into the
hands of 177 million people. Carriers have long sought to expand their
networks so that they might bring customers nationwide service without
roaming charges. The addition of wireless Internet connections makes the
expansion of networks even more of a priority, because data transmissions
are more complex than voice. "They need to make sure they have seamless
networks," said Mark Lowenstein, an analyst with the Yankee Group in Boston.
"The more you move across different networks, it really throws things off."
While SBC and BellSouth have extensive traditional telephone businesses,
neither has anything like a national wireless presence. The continued growth
of the wireless market provides strong motivation for companies to expand
their wireless offerings.
[SOURCE: Washington Post (E1), AUTHOR: Peter S. Goodman]
(http://www.washingtonpost.com/wp-dyn/articles/A58775-2000Mar2.html)
MCCAW TO FUSE SATELLITE-PHONES SYSTEMS AND TELEDESIC
Issue:
Craig McCaw plans to combine the ICO and Iridium satellite-phone systems
with his own proposed Teledesic project to create a global voice-and-data
network. In documents filed in the bankruptcy-court proceedings of ICO
Global Communications and Iridium, McCaw outlined his plan. Basically, Mr.
McCaw wants to acquire the two systems for pennies on the dollar, then knit
them into a satellite network that would provide telephone service, and
high-speed Internet access. McCaw would lead a $1.7 billion bailout of ICO,
a company valued at $4.7 billion. He is also proposing to invest about $600
million to take control of the $5 billion Iridium system. For his money he
would get Iridium's 66 satellites, its customer base of 50,000 users and its
well-regarded billing system. ICO's assets include 12 satellites in orbit
and the beginnings of a $900 million fiber-optic network to link its ground
stations. Tim O'Neil, a Wit Soundview analyst compared the ICO and Iridium
rescue packages to Mr. McCaw's 1995 takeover of then-struggling Nextel
Communications, whose unusual cell phones double as two-way radios. Under
Mr. McCaw's guidance, Nextel's subscriber base has grown enormously, along
with its stock-market value.
[SOURCE: Wall Street Journal (B8), AUTHOR: Scott Thurm]
http://interactive.wsj.com/articles/SB951952823587957495.htm
MERGERS
TELECOM ITALIA PUTS OFF INTERNET MERGER
Issue: Mergers
Telecom Italia put off the merger of its Internet unit with Seat Pagine
Gialle, owner of Italy's biggest portal, because of a rise in the price of
Seat PG shares. As part of the merger terms, Telecom Italia agreed to bid
for all of Seat PG's shares once the merger went through. What it wants to
avoid is having to bid for all the shares at the current higher prices. The
merger with publicly traded Seat PG was going to allow Telecom Italia to
list its Internet operations on the stock market without having to go
through an expensive IPO. The costs associated with bidding for all Seat PG
shares based on current market prices would defeat this purpose. The two
companies are awaiting a ruling from the nation's securities commission and
will convene board meetings on March 15 to discuss the merger's conditions.
[SOURCE: Wall Street Journal (A21), AUTHOR: Yaroslav Trofimov]
http://interactive.wsj.com/articles/SB951942166330559328.htm
NBC PURCHASES A MINORITY STAKE IN DIGITAL ENTERTAINMENT NETWORK
Issue: Merger
NBC bought a minority stake in Digital Entertainment Network Inc., a company
that beams television-like entertainment over the Web. DEN (www.den.net) had
been touted as a leader in the move to bring compelling video entertainment
to the Internet, but it's been hurt by a run of bad publicity of late. DEN
broadcasts edgy episodic entertainment aimed at people in their teens and
early 20s.
[SOURCE: Wall Street Journal Interactive, AUTHOR: News Roundup]
(http://interactive.wsj.com/articles/SB951942262306124568.htm)
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