ERATE
Republicans Renew Attack On E-Rate (NYT)
JOURNALISM
Police Violate Privacy in Home Raids With Journalists (NYT)
Undermining the Latin Press (NYT)
BROADBAND/CABLE
The Battle for Broadband Access (Wired News)
Fears Rise of a 'Digital Divide'
How High's the Sky?
Top MSOs Own 90% of Subs (B&C)
PRIVACY/ENCRYPTION
State Bill Extends Arm of Law on Net Records (SJ Merc)
Slip Of The Tongue Lightens Up Encryption Hearing (NYT)
MERGERS
American-Style Capitalism Wins One in Italy (NYT)
NONPROFITS/ANTITRUST
High Court Lets FTC Police Nonprofits
EMPLOYMENT
'90s Unkind to Workers Study: Lower Wages,
Less Job Security Downside to `New
Economy' (SJ Merc)
INTERNATIONAL
Technology Intrudes on Dogma in Land of the Taliban
ERATE
REPUBLICANS RENEW ATTACK ON E-RATE
Issue: E-Rate
As the Federal Communication Commission (FCC) prepares to set this year's
E-rate -- funding for school and library Internet connections -- a partisan
battle is being waged over the fund which Republicans call the "Gore tax."
Last week, the Republican National Committee sent an email asking supporters to
contact the FCC with their opposition to the E-rate. The GOP insists that FCC
Chairman William Kennard's plan to increase the funding to $2.25 billion this
year will force telephone companies to raise customers' fees in order to
finance the universal service program. Democrats from rural states are pushing
the FCC to subsidize high-speed Internet access in rural areas to ensure the
reality of a truly "universal service." Senators say small businesses and farms
in rural communities are lacking the Internet access they need. "We are
determined not to end up with a country of haves and have nots with respect to
advanced telecommunications," said Sen Byron Dorgan (D-SD). Several Senators
wrote a letter to Chairman Kennard asking the FCC to support access to
technology in rural areas. The request includes "subsidizing high-speed
Internet and data services via satellite, raising the technical requirements
for phone lines, and encourage cellular companies to serve remote areas and
Indian reservations."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing ]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/25capital.html)
JOURNALISM
POLICE VIOLATE PRIVACY IN HOME RAIDS WITH JOURNALISTS
Issue: Journalism
The Supreme Court ruled unanimously yesterday that the police practice of
bringing journalists and photographers into people's homes during searches
or arrests violates "the right of residential privacy at the core of the
Fourth Amendment." "Surely the possibility of good public relations for the
police is simply not enough, standing alone, to justify the ride-along
intrusion into a private home," Chief Justice William Rehnquist wrote for
the Court. The ruling does not affect report on police activity in public
places and the Court did not address the liability of news organizations
themselves.
[SOURCE: New York Times (A25), AUTHOR: Linda Greenhouse]
(http://www.nytimes.com/library/politics/scotus/articles/052599police-media.
html)
See also:
POLICE CAN BE SUED FOR LETTING MEDIA SEE RAIDS
[SOURCE: Washington Post (A8), AUTHOR: Joan Biskupic and Howard Kurtz]
MEDIA 'RIDE-ALONGS' CURBED
Issue: Privacy
The Supreme Court ruled unanimously Monday that police violate the privacy
rights of homeowners when they allow media to accompany them on searches and
arrests inside people's homes. "The need for accurate reporting on police
issues in general bears no direct relation to the constitutional justification
for the police intrusion in to a home," wrote Chief Justice William Rehnquist.
The National Association of Criminal Defense Lawyers represented a couple that
sued after government agents brought a CNN crew onto their property while
conducting a raid. Legal experts say media "ride-alongs" with police will now
stop at the front door of homes. Richard Cordray, a lawyer for the police
sued in the case, says media will still be able to ride-along with police and
accompany them in any public spaces. The ruling demonstrates that the Court
"saw no public value in giving the media access to such searches," said Jane
Kirtley of the Reporters Committee for Freedom of the Press. Joshua Dratel of
the National Association of Criminal Defense Lawyers said the ruling meant "the
government is not allowed to make a display of you."
[SOURCE: USA TODAY (A1), AUTHOR: Tony Mauro]
(http://www.usatoday.com/)
UNDERMINING THE LATIN PRESS
Issue: Journalism
[Editorial] The Clinton Administration seems to be backing an Organization
of American States declaration that would give governments license for
further restrictions on Latin America's besieged journalists. The
declaration is a retreat from previous strong statements on press freedoms
signed by hemisphere governments.It would allow some forms of prepublication
censorship allows for freedom of the press to be limited "under domestic
law." Such laws in some countries, however, make it illegal to show contempt
for public officials and then are used to jail journalists who publish
stories about corruption -- even when they are true.
[SOURCE: New York Times (A30), AUTHOR: NYT Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/25tue3.html)
BROADBAND/CABLE
THE BATTLE FOR BROADBAND ACCESS
Issue: Broadband/Internet Access
MCI WorldCom, America Online, and other Internet companies urged the FCC
yesterday to bar cable companies from striking exclusive deals on new
high-speed services. The companies say consumers will end up having to pay
twice if they chose to use their services. AT&T, for example, requires
customers of high-speed cable Internet access to purchase the services of
AtHome, a cable-owned provider controlled by AT&T, for a single price. Cable
Internet customers may use AOL or other ISPs, but must still pay for AtHome.
Two-day talks starting Monday are an"informal, educational" session on the
convergence of the cable and Internet industries, attendees said. Under
current law and FCC rules, phone companies offering high- or low-speed
Internet access must offer customers a choice of Internet service providers.
But the same rules do not apply to cable operators.
[SOURCE: Wired News, AUTHOR: Reuters]
(http://www.wired.com/news/news/politics/story/19858.html)
FEARS RISE OF A 'DIGITAL DIVIDE'
Issue: Convergence
AT&T predicts that the days of convergence -- when the phone, the TV and the
personal computer will all be fed by one cable TV wire into American's homes --
are near. But consumer organizations fear that steep costs for adapting the
current networks could translate into "gee-whiz services at jaw-dropping
prices," leaving many consumers unable to afford the new services. AT&T says
that the future services provided by one single company would reduce costs for
consumers. In Alexandria (VA), cable operator Jones Communications, which sells
combined cable TV and local phone services, has already undercut the prices of
the local phone monopoly by 10 percent. But Jones and Comcast, which acquired
Jones in April, are only offering services in apartment buildings where
multiple customers can be acquired at a lower cost. "Wary of making
predictions, Comcast won't say when its bundled services will be universally
available throughout the Washington area." AT&T is also hesitant about saying
when it will actually market its bundled services. Critics say "it could cost a
bundle to get a bundle" and that the new services could create a "digital
divide" between those who can afford them and those who cannot.
[SOURCE: Washington Post (E1), AUTHOR: Paul Farhi]
(http://washingtonpost.com/wp-srv/WPlate/1999-05/25/069l-052599-idx.html)
HOW HIGH'S THE SKY?
Issue: Cable Mergers and Acquisitions (M&As)
B&C Deputy Editor John M. Higgins interviews Morgan Stanley Dean Witter's
Richard Bilotti, Deutsch Bank Securities' Doug Shapiro, and Nationsbank
Montgomery Securities' John Tinker about the high prices being paid for the
M&As in spite of negative buyer cash-flows. Whether companies are buying in a
panic or simply making "land grabs," the analysts agree that companies are
losing money in the short-term, they are executing products slowly, and are not
fulfilling consumer demands for high-speed Internet access as promised.
Though consumers have been responsive to digital cable sales and are anxious to
receive larger amounts of data via high-speed Internet systems, the analysts
predicts that data technology such as VOD [video on demand] will take a long
time to develop, one-and-half to five years.
[SOURCE: Broadcasting&Cable (p.46), AUTHOR: B&C Deputy Editor John M. Higgins]
(http://www.broadcastingcable.com/)
TOP MSOs OWN 90% OF SUBS
Issue: Cable
Broadcasting & Cable ranks the top 25 multiple system operators (MSOs) by total
number of subscribers. The top five on the list are AT&T Broadband (16,200,000
subscribers), Time Warner, Comcast, Cox, and Adelphia. Many MSOs that have
never expected to get on the list are now top 25 due to the huge wave of
takeovers in the cable industry. The top 25 MSOs control 60.8 million
subscribers (or about 90% of all US cable homes). New entrants into the
industry, like AT&T, are coming onto the scene with lots of cash and plans to
roll out new services. In choosing acquisitions, operators look for local sales
that will match their existing subscriber base. But some acquisitions, such as
Adelphia Communications' takeover of Century Communications and Frontier Vision
Partners, demonstrate that companies will settle for sheer mass. The
ranking of MSOs seems to not mean much more than an ego boosts for the
companies, as there is so much fluctuation. Whereas operators were selling in
1994, fearing competition from telecommunication and wireless companies, they
are now buying in a hurry in an attempt to control multiple services. Other
MSOs feel they can beef up their revenues by adding digital, high-speed
Internet, and telephone services.
[SOURCE: Broadcasting&Cable (p. 34), AUTHOR: John M. Higgins]
(http://www.broadcastingcable.com/)
PRIVACY/ENCRYPTION
BILL EXTENDS ARM OF LAW ON NET RECORDS
Issue: Privacy
The California State Senate has unanimously approved a bill that will make it
easier for police to obtain electronic information from Internet and email
service providers. The legislation requires most out-of-state ISPs and email
providers to respond to California-issued search warrants. The bill also
requires California providers to honor out-of-state warrants. While the
State's attorney's office says that the rules could be a model to aid other
states in criminal investigations, some critics fear that it give law
enforcement officials too much authority. "There's a problem of jurisdiction.
How a superior court judge in California could have the power to issue a search
warrant for property in another state is beyond me," said Steve Meinrath, a
lobbyist for the California Attorneys for Criminal Justice. "That's why we
have a federal court."
[SOURCE: San Jose Mercury News, AUTHOR: Mary Anne Ostrom]
(http://www.mercurycenter.com/svtech/news/indepth/docs/senate052599.htm)
SLIP OF THE TONGUE LIGHTENS UP ENCRYPTION HEARING
Issue: Encryption
"Never underestimate the stupidity of some of the people we have to deal with,"
said William A. Reinsch, Under Secretary of Commerce for the Bureau of Export
Administration, while being asked about the likelihood of criminals using
technology being pushed by the Clinton Administration. Under Secretary
Reinsch received a
chuckle as he was testifying before the House International Relations
subcommittee in defense of the Administration's encryption policy. The
Administration is justifying the loosening of export controls on strong
encryption by counting on technology to guarantee law enforcement easy
access to criminals' communication.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/25capital.html)
MERGERS
AMERICAN-STYLE CAPITALISM WINS ONE IN ITALY
Issue: Mergers
[Editorial] Olivetti won Telecom Italia with an American-style leveraged
buyout. The question now is will the victor be able to operate the telephone
giant. The big losers so far are Italian investors with "savings shares" of
TI -- they do not get a vote in the merger and the value of their shares has
dipped since the merger. Moving from a monopoly, TI was slated to cut back
jobs -- many more will be lost now and if the Italian government resists
layoffs, that could hurt Olivetti. "Roberto Colaninno, Olivetti's chief
executive, may go down in European history as the man who used
American-style takeover tactics to gain control of a company that he then
improved to everyone's benefit. But if things do not work out, there is
likely to be a backlash against the aggressive tactics of such takeovers."
[SOURCE: New York Times (A30), AUTHOR: Floyd Norris]
(http://www.nytimes.com/yr/mo/day/editorial/25tue4.html)
See also:
DEUTSCHE TELEKOM LOST MORE THAN JUST TELECOM ITALIA
[SOURCE: New York Times (C4), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/yr/mo/day/news/financial/olivetti-deutsche-teleko...)
TELECOM-OLIVETTI MATCH REDRAWS MERGER MAP
[SOURCE: Wall Street Journal (A18), AUTHOR: Gautam Naik and William Boston]
(http://www.wsj.com/)
NONPROFITS/ANTITRUST
HIGH COURT LETS FTC POLICE NONPROFITS
Issue: Nonprofits/Antitrust
The Supreme Court ruled yesterday that the Federal Trade Commission acted
within its authority when it sued the California Dental Association in 1993
claiming that the CDA's extensive disclosure requirements did not allow members
to advertise discounts. The Supreme Court handed the FTC a mandate to police
nonprofit associations, but also said that FTC examinations warranted further
review. Experts were displeased with these rulings saying "they will slow down
efforts by courts and regulators to forgo a rigorous analysis of market effects
before concluding that a company or association has violated antitrust law."
The FTC was also displeased as it wanted to apply a "quick-look" standard to
reviewing antitrust cases -- but can claim victory in the end. "This is a vital
element of the FTC now," said William Kovaci, a law professor at George
Washington University. "Had the court ruled against them on this, it would have
destroyed the most important non-merger related work the agency does."
[SOURCE: Washington Post (p.E3), AUTHOR: David Segal]
(http://washingtonpost.com/wp-srv/WPlate/1999-05/25/058l-052599-idx.html)
EMPLOYMENT
'90S UNKIND TO WORKERS STUDY: LOWER WAGES, LESS JOB SECURITY DOWNSIDE TO `NEW
ECONOMY'
Issue: Employment
While the fortunes of high-tech entrepreneurs often make the headlines, there
is little news about the financial situation of the average worker in the heart
of the Silicon Valley. According to a report to be released today, workers in
California are taking home less in real wages than they were at the beginning
of the 90s. Written by the San Jose-based Working Partnerships USA and the
Economic Policy Institute in Washington (DC), the report says that nearly 40%
of the jobs to be created by 2006 are in occupations that pay less that $10 an
hour. "Work in California's New Economy: Walking the Lifelong Tightrope"
highlights the fact that more and more companies are depending on temporary
workers. "These flexible arrangements make workers more vulnerable as companies
are able to shift supplier and sub-contracting relationships quickly and
easily, depending on market changes or managerial tactics, with little
responsibility to the workers affected," the report says.
[SOURCE: San Jose Mercury News, AUTHOR: Jonathan Rabinovitz]
(http://www.mercurycenter.com/svtech/news/indepth/docs/econ052599.htm)
INTERNATIONAL
TECHNOLOGY INTRUDES ON DOGMA IN LAND OF THE TALIBAN
Issue: Technology
Afghanistan's right-wing Taliban has finally conceded to allow technology like
laptops and cellular phones in its borders after realizing that they have as
much to gain as to fear from technology. The Taliban has restricted the use and
possession of television sets, tape cassettes and cameras since it seized
government control in 1996. After years of warfare, the county is in desperate
need for technology yet years of indoctrination against Western modernity will
be difficult to reconcile. Communications Ministry officials are now "trying to
find a way to log on without losing faith."
[SOURCE: Washington Post (A10), AUTHOR: Pamela Constable]
(http://washingtonpost.com/wp-srv/WPlate/1999-05/25/107l-052599-idx.html)
--------------------------------------------------------------
Headlines says, "So long" today to intern Alicia Kemmitt who's off to find
Tony's heart in San Francisco. (Yes, she knows...this summer could be the
coldest winter...)