Communications-related Headlines for 4/22/99

** Due to the festivities planned for NATO's 50th Anniversary, tomorrow has
been declared an unscheduled federal holiday -- Headlines will be back on
Monday, 4/26 **

INTERNET
Domain Name Management (NTIA)
AOL To Compete In Assigning Internet Domains (CyberTimes)
'Sesame Street' Site: Serious Child's Play (NYT)
The Fact Is, Free Fax Attracts (WP)

TELEVISION
Broadcasters' Bets Are On (ChiTrib)
Techies and Broadcasters Rub Elbows Uneasily (WSJ)
Broadcasters Mull Digital Technology (WP)

MERGERS/TELEPHONY
Telecom Italia and Deutsche Telekom Reach Agreement
on Merger (NYT)
FCC Talks With SBC, Ameritech (ChiTrib)
AirTouch cuts price of prepaid plans (SJ Merc)

ON THE HILL
Is There Another You? (House)
International Satellite Reform Subcommittee Hearing
Canceled (Senate)

JOURNALISM
Media Blitz Raises Coverage Questions (WP)

INTERNET

DOMAIN NAME MANAGEMENT
Issue: Internet
The NTIA has posted information on domain name management including 1) a
statement by Commerce Secretary William M. Daley
(http://www.ntia.doc.gov/ntiahome/press/dnsrls42199.htm), 2) an announcement
by ICANN (http://www.icann.org/icann-pr21apr99.htm), 3) Registrar License
and Agreement (http://www.ntia.doc.gov/ntiahome/domainname/rla42199.htm) and
4) Amendment 13 to the Cooperative Agreement
(http://www.ntia.doc.gov/ntiahome/domainname/amendment13.htm). Sec Daley's
statement reads in part: "This morning [4/21], the Internet Corporation for
Assigned Names and Numbers (ICANN) announced the selection of five companies
to participate in a two month test of a new shared registration service. The
companies accredited by ICANN for this test are diverse in terms of size,
business models, and geographic origin. In addition, ICANN has announced 29
additional companies who will compete in a free and open market when the
test is complete."
[SOURCE: NTIA]
(http://www.ntia.doc.gov/new.html)

AOL TO COMPETE IN ASSIGNING INTERNET DOMAINS
Issue: Internet/Regulation
The Internet Corporation of Assigned Names and Numbers (ICANN) chose AOL as
one of the five companies to compete with Network Solutions in assigning
Internet addresses. Other companies selected are Register.com, France
Telecom, Melbourne IT, and the Internet Council of Registrars. Dave Farber,
a professor of computer science at University of Pennsylvania and board
member of Internet civil liberties group Electronic Frontier Foundation,
said ICANN missed an opportunity to "spread the wealth" by selecting the
giant AOL. ICANN was appointed by the Clinton administration to shift
management of Internet from government contractors to the private sector.
It is uncertain just how much competition will be sparked by the rules
ICANN has set up. Competitors must pay Network Solutions $10,000 fee up
front to cover the software they have developed and pay a $9-a-year fee to
have access to the registry. Network Solutions established itself as a
Fortune 500 company in the last seven years that it had an exclusive
government contract: "The economic reality is that Network Solution has all
the market movement in its favor, and there's noting ICANN or the
Government can do to really unseat Network Solutions," said Keith Benjamin,
an Internet analyst. ICANN chairman, Esther Dyson, said the board
intentionally picked a big company, a small one, and interests representing
diverse business models and parts of the world.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/22domain.html)

'SESAME STREET' SITE: SERIOUS CHILD'S PLAY
Issue: Internet Content
Tina Sharkey, vice president and general manager of the group that designed
the new Web site for the Children's Television Workshop (www.ctw.org), said
the "Sesame Street" show "invented one of the most important movements of
the 20th century, empowering families to get involved with their kids'
learning." The challenge for Ms. Sharkey's group was to recreate the CTW's
blend of education and entertainment on the Web: "We had to take what we as
a company understand about a 6-year-old's mind-set and then apply it to the
Web," Ms. Sharkey said. The nonprofit site also has to compete with
commercial online destinations built by Disney (www.disney.com) and
Nickelodeon (www.nick.com), the cable channel for kids. 67% of parents who
own computers log on with their kids, so CTW tried to produce "lapware" -- a
site that would be engaging for both parent and child. The site includes
interactive story telling and other activities for kids. But it also has
stuff for parents like Internet technical advice in plain English. Unlike
the television counterpart, the site does some contain some advertising
although there's none on pages targeted for preschoolers and it is clearly
labeled where it does appear. This has raised some criticism: "I don't think
children are a proper target for commercial speech," said Peggy Charren, a
visiting scholar at Harvard University's Graduate School of Education and a
leading lobbyist on such issues. "Ads tell children they need something they
may not be able to afford when in reality, they probably don't need it."
[SOURCE: New York Times (D8), AUTHOR: Michelle Slatalla]
(http://www.nytimes.com/library/tech/99/04/circuits/articles/22chil.html)

THE FACT IS, FREE FAX ATTRACTS
Issue: Information Technology
First it was free browsers for the Internet, then free e-mail and free home
pages, now it's free faxing. For free faxing, you get a free personal phone
number to which anyone can send you a fax, which is sent as a file to any
e-mail address you designate for display on a computer screen or in hard
copy from your printer. Efax.com started the battle in February offering the
service for free. Within eight weeks, Efax.com signed up more than 300,000
subscribers. Jfax.com had been attempting a similar, but modestly priced,
service for 2 1/2 years with much less success. They have decided to scuttle
charges. The success of Efax.com has sparked a spate of other imitators,
including Callwave.com and Ifaxmail.com. Most of the companies let you
receive faxes at no cost but charge you to send a fax. Beyond that, the
business plans of the companies vary widely. They make their money on
specialized services and advertising. The stakes are high because e-mail and
fax are big business. Fax use is growing at 20% a year; e-mail is growing
even faster.
[SOURCE: Washington Post (E1), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-srv/business/longterm/tech/techthursday/do
tcom/dotcom.htm)

TELEVISION

BROADCASTERS' BETS ARE ON
Issue: Television
"This industry isn't going through a technology change -- we're going
through a generation change," said Harris president E Van Cullens. "There
are people here who have postulated a scenario in which every person is a
broadcaster and every office is a production house, and, if you put
something up--and it's interesting--people will look at it."Viva Las Vegas
where the broadcast industry met this week at its annual meeting. Observers
watched as battle lines the old guard -- radio and television -- and "the
new mavericks of the Internet." Although digital television is being
launched -- The Tonight Show will be available in HDTV starting next week,
for example -- the enthusiasm for it at this meeting was nowhere near that
displayed at the Consumer Electronics Show this past winter. There are only
about 20,000 digital TV sets and the networks can't seem to decide what
resolution format will succeed. And in New York and Chicago, there are
problems getting tower space for the new antennas needed. But computer execs
are showing off how digital technology can be a boon for advertisers --
interactive services can allow viewers to order clothes their favorite stars
wear (or the background music they hear or tickets to a band's next concert)
with the click of a button and product placements can be done in post
production or even live.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Gary Dretzka]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904220083,00.html)

TECHIES AND BROADCASTERS RUB ELBOWS UNEASILY
Issue: Broadcasting
Silicon Valley was well represented, not surprisingly, at this year's
convention of the National Association of Broadcaster. Some attendees even
commented that the gathering looked frighteningly similar to the Comdex
computer show held this week in Chicago. While techies have had a growing
presence in broadcasting for some time, they seem to be making broadcasters
more uncomfortable than ever before. "They've gone beyond what we would
consider our safety zone," said Gus Chambers, a Montana producer. Even the
big guys appear to be worried about the prognosis for broadcasting in the
Digital Age. "The thing that made radio and TV a good business was
limited competition,' said Ted Turner, founder of Turner Broadcasting and
CNN. "Why do you think I merged with Time Warner, I was scared to death of
the future."
[SOURCE: Wall Street Journal (B6), AUTHOR: Even Ramstad]
(http://wsj.com)

BROADCASTERS MULL DIGITAL TECHNOLOGY
Issue: Digital TV
Digital television means more than pretty pictures, it means extra channels
and new services, services which the Federal Communications Commission has
not chosen to select. FCC Chairman Bill Kennard told the annual broadcasters
convention in Las Vegas, "Just as the jet engine revolutionized air travel,
I think that when the broadcast airwaves go digital, it's going to
revolutionize television in this country." The new services will offer
information for viewers and new opportunities to make money for the
broadcasters. Jerry Yang, co-founder of the Internet company Yahoo!,
believes broadcasters and Internet companies can and should work together to
create new information products that people can get from their computers or
TV sets. Howard Stringer, chairman of Sony, said, "Digital television will
afford unprecedented opportunities to create new content, customize it and
re-express it in new formats." This fall NBC, working with Intel, plan to
give viewers who watch some digital versions of its Saturday morning teen
shows the ability to participate in online chats and take interactive quizzes.
[SOURCE: Washington Post (Online), AUTHOR: Jeannine Aversa (Associated Press)]
(http://www.washingtonpost.com/wp-srv/WAPO/19990422/V000117-042299-idx.html)

MERGERS/TELEPHONY

TELECOM ITALIA AND DEUTSCHE TELEKOM REACH AGREEMENT ON MERGER
Issue: Merger
After much speculation, two of Europe's largest telecommunications
companies, Telecom Italia and Deutsch Telekom, have reached a formal merger
agreement. In the largest merger in European history, the two former
state-owned monopolies will become the world's second largest
telecommunications company. Seventy-two percent of the Deutsch Telekom's
shares are still controlled by the German government. The merger still
awaits shareholder and regulator approval. Telecom Italia first sought the
deal as a defensive move to evade a hostile take over by its main domestic
competitor, Olivetti. Despite the larger size of the German carrier, the newly
combined company plans to stress equity between the two nations, with a
supervisory board split equally between Italian and German representatives.
[SOURCE: New York Times (C1), AUTHOR: John Tagliabue]
(http://www.nytimes.com/yr/mo/day/news/financial/telecom.html)
See also:
EUROPEAN TELECOM GIANTS REACH DEAL
[SOURCE: Washington Post (E1), AUTHOR: Anne Swardson ]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/telecom22.htm)

FCC TALKS WITH SBC, AMERITECH
Issue: Mergers
"We're more than eight months into the process," Ameritech Chairman Richard
Notebaert said, "and that's an encouraging sign. If they were going to say
no, they'd probably have told us that six or seven months ago." Ameritech
and SBC are in talks with the FCC in hopes of winning approval for their
proposed merger. Mr. Notebaert noted that when AT&T and SBC were talking
merger in 1997, then-FCC Chairman Reed Hundt made it clear that such a deal
would not be approved. That helped kill that deal before it was officially
announced. Now Mr. Notebaert is convinced this deal will win approval by July.
[SOURCE: Chicago Tribune (Sec 1, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904220062,00.html)

AIRTOUCH CUTS PRICE OF PREPAID PLANS
Issue: Telephony
AirTouch Cellular is cutting the price of its prepaid mobile plans and
restructuring some other features of the plans. Their decisions may cause
similar changes in the pricing plans of other companies. Prepaid mobile
phone plans were aimed originally at people with bad credit ratings or no
credit, but companies are trying to broaden the appeal to people who want to
control their cellular costs. The cost per minute for prepaid plans tend to
be much higher than in conventional plans. New prices for AirTouch will be
50 cents per minute for the $30 plan to 35 cents per minute for the $100
plan. The cellular time can be used over 90 days, up from 60. One problem
has been reactivation fees for people who do not keep the service going from
month to month. AirTouch now permits former users to reestablish service
without charge after buying a prepaid card giving them additional minutes.
Prepaid callers still have to cover the cost of a phone, which can range
from $50 to $200. On the extra costs of using a prepaid plan, Michael
Shames, a San Diego consumer advocate, said, "It's essentially a tax for
being poor, or being in a situation where they can't get a credit card."
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/prepay042299.htm)

ON THE HILL

IS THERE ANOTHER YOU?
Issue: Privacy/Security
Reminder: Subcommittee on Telecommunications, Trade, and Consumer Protection
and the Subcommittee on Finance and Hazardous Materials joint hearing on
Identity Theft: Is There Another You? Today at 10:00 a.m. (eastern) in 2123
Rayburn House Office Building.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/)

INTERNATIONAL SATELLITE REFORM SUBCOMMITTEE HEARING CANCELED
Issue: Satellite
Today's scheduled hearing of the Communications Subcommittee of the Commerce
Committee has been canceled.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-43.htm)

JOURNALISM

MEDIA BLITZ RAISES COVERAGE QUESTIONS
Issue: Journalism
The school shooting in Littleton, CO instantly overshadowed the war in
Yugoslavia for news coverage. The major networks sent key anchors to the
scene to handle live broadcasts, Peter Jennings, Tom Brokaw, Dan Rather,
Katie Couric, and Charles Gibson. The networks Wednesday night used the
shooting as their main topic on their magazine shows and are planning more
for tonight. Ted Koppel plans a town meeting on "Nightline" tonight from
Jonesboro, AR, site of a 1998 school shooting. Some journalists and viewers
criticized KUSA-TV, the Denver NBC affiliate, whose feed was used by MSNBC
and CNN, for inviting students trapped in the school to call the station on
their cell phones. However, after criticism over coverage of the Jonesboro
shooting and its intrusion into people's lives, networks apparently are
trying to be more sensitive and less dramatic. Journalists also expressed
concern over the possibility of copycat crimes. While the massacre generated
banner headlines everywhere, the Chicago Sun-Times kept the story off the
front page. Editor in Chief Nigel Wade said publicity surrounding such
attacks "could be contributing to the phenomenon."
[SOURCE: Washington Post (A11), AUTHOR: Howard Kurtz]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-04/22/229l-042299-idx.html)

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