PRIVACY
House Republicans Offer Digital Signature Bill (SJ Merc)
Agreement Reached On Internet Privacy (NYT)
Court Call Encryption Rules Unconstitutional (CyberTimes)
INTERNET
Fast Phone Lines May Help AOL Trump Cable TV (WSJ)
Delivering on Promise of Convergence (WP)
Lockheed, Partners Plan System Of Satellites (WP)
Afghans To Get Phones, Mobiles, Internet (SJ Merc)
www.ihate (ChiTrib)
School's Online Publication Face Curbs of Their Own (CyberTimes)
MERGERS
Bill Would Pressure Fcc On Mergers (SJMerc)
Microsoft Windows Heads For TV Set (WSJ)
Ads Attack AT&T-MediaOne Deal (WP)
FCC Staff Cites Flaws In Phone Deal Plan (NYT)
FCC
A New FCC for the 21st Century (FCC)
MAGAZINES/ADVERTISING
Hot Response For Budweiser Gay Ads (WP)
Magazine Content Rules Are No Favor To Canadians (WSJ)
LOBBYING
Microsoft's Window of Influence (WP)
ECONOMY
Greenspan Credits Technology (WP)
PRIVACY
HOUSE REPUBLICANS OFFER DIGITAL SIGNATURE BILL
Issue: Privacy/Electronic Commerce
Digital signatures would gain greater legal acceptance under a bill proposed
on Thursday by House Commerce Committee Chairman Thomas Bliley (R-VA) and
other committee Republicans. The measure, which drew quick support from a
host of e-commerce businesses, is one of several that has been introduced in
Congress to promote use of electronic signatures. A digital signature allows
the user to agree to a binding contract, authorize a credit card payment or
enter into other transactions without requiring the exchange of a physical
signature -- often an impossibility when deals are done over the Internet.
The bill would provide for the acceptance of electronic signatures in
interstate commerce and in the securities industry, and directs the
Secretary of Commerce to promote the use of such measures overseas as well.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/004938.htm)
See also:
ELECTRONIC SIGNATURES BILL
Issue: Legislation/Electronic Commerce
From Commerce Committee News Release: Chairman Tom Bliley (R-VA) and Reps.
Tom Davis (R-VA), Billy Tauzin (R-LA), and Mike Oxley (R-OH) introduced a
bill today to promote the growth of electronic commerce by making it easier
for Americans to do business on-line. The bill, H.R. 1714, The Electronic
Signatures in Global and National Commerce Act (E-SIGN), would allow
consumers and businesses to use electronic signatures, the same way they use
hand-written signatures, when making on-line business transactions. This
bill is needed to remove legal uncertainties surrounding the status of
electronic signatures and records. "Electronic signatures have been one of
the biggest barriers to the growth of electronic commerce. This bill fixes
this problem by ensuring electronic signatures carry the same legal
protections and guarantees as written signatures," Chairman Bliley said.
Specifically, H.R. 1714 would: provide for the acceptance of electronic
signatures and records in interstate commerce; direct the Secretary of
Commerce to promote the principles of this legislation overseas; and provide
for the acceptance of electronic signatures and records by the securities
industries. See a full summary at the URL below.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/a8421c4f5171dd23852567370
07cd80f/8326a162598910fb85256769005c8cf3?OpenDocument)
AGREEMENT REACHED ON INTERNET PRIVACY
Issue: Regulation/Privacy
The Federal Trade Commission (FTC) said Thursday that Liberty Financial's Young
Investor's Web site used information gleaned from children, including the
amount of the weekly allowances, whether their parents were saving for college,
to identify specific individuals. In its second Internet privacy action, the
FTC also said that Liberty Financial had failed to post a privacy notice and
obtain parental consent before collecting identifying information from
children, which the company had agreed to. Hal Thayer, a spokesperson for
Liberty Financial, said the company has kept children's information
confidential and supports complying with FTC policy.
[SOURCE: New York Times (A18), AUTHOR: David Stout]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/07privacy.html)
See Also:
FIRM SETTLES WEB CHILD-PRIVACY CASE
[SOURCE: San Jose Mercury News]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/417695l.htm)
COURT CALL ENCRYPTION RULES UNCONSTITUTIONAL
Issue: Privacy
The US Court of Appeals ruled in California yesterday that the US government's
restrictions on the distribution of encryption software are an unconstitutional
violation of free speech. In the case of a math professor who wanted to
distribute information on encryption via the Internet, the court ruled that
export regulations "operate as a prepublication licensing scheme that burdens
scientific expression." The federal government has long viewed encryption
software as a national security threat. Many businesses have recently
lobbied to these regulations claiming that message scrambling is essential
to privacy and expansion of e-commerce. In addition, because encryption is
common overseas, American companies argue they need to use it in order to
compete.
[SOURCE: CyberTimes, AUTHOR: Peter Wayner]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/07encrypt.html)
INTERNET
FAST PHONE LINES MAY HELP AOL TRUMP CABLE TV
Issue: Broadband
After being shut out of the biding for MediaOne, AOL has begun to turn to more
tradition sources of broadband in an effort to build a national high-speed
data network. AOL is talking to the Baby Bells and GTE about a plan to link
their local DSL (digital subscriber line) networks. DSL technology, which
has recently taken a back seat to the attention given to high-speed cable
modems, uses copper wire to deliver super fast Internet access. With its
inability to make a deal with any cable company, AOL has turned its focus to
regional Bell companies. The ISP already has forged alliances with Bell
Atlantic and SBC to give subscribers high-speed access through DSL lines.
Currently, an estimated 750,000 households use cable modems, while only
50,000 take advantage of DSL technology.
[SOURCE: Wall Street Journal (B1), AUTHOR: Thomas Weber and Stephanie Mehta]
(http://wsj.com)
DELIVERING ON PROMISE OF CONVERGENCE
Issue: Broadband
The promise of "convergence" of TV, telephone and computers has been around
for years, but the technology has matured and the service is arriving.
Consumers will be able to order services a al carte or pay for a unified
bundle. Bell Atlantic, for example, provides traditional local phone
service, but also has high-speed Internet access over phone lines, through
Digital Subscriber Line service, and TV, through an agreement with satellite
company DirectTV. In the Washington market Bell Atlantic's current
competition is Starpower Communications, a venture half owned by Potomac
Electric Power Co. Comcast may join the fray offering not only
its traditional cable service, but also local and long distance phone
service through AT&T. Richard Shaffer of Technologic Partners says, "We've
got the content, we've got cheap pipes, and there's a huge future." He cites
dropping technology costs and growth of the Internet as
reasons for convergence's reemergence. Gene Kimmelman of Consumers Union
fears that companies will fight over customers who can afford the top tier
of service and will leave less affluent customers with the same monopoly
cable service they have always had.
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]
(http://www.washingtonpost.com/wp-srv/business/daily/may99/consumer7.htm)
AFGHANS TO GET PHONES, MOBILES, INTERNET
Issue: International/Telephony
The bulk of recent overseas expenditures in Afghanistan has been for bullets
and bombs to prosecute an unresolved 20-year war. A British businessman is
ready to bring phone service to Kabul within the next few weeks with mobile
phone and Internet service to follow in the first major foreign investment
in the country for years. Michael Cecil of the New Jersey-based Telephone
Systems International says his company is forming a joint venture with the
Taliban, a quasi-governmental group in the country. The existing 40-year-old
telephone network is in ruins and lacks international connections. The first
phase of the project will be to bring basic telephone service to several of
the major cities. Key potential subscribers include Taliban officials and a
fast-increasing local business community together with aid organizations.
"It is a very unusual project in that there are virtually no countries in
the world which have telecommunications as underdeveloped as Afghanistan,"
said Cecil.
[SOURCE: San Jose Mercury News, AUTHOR: Andrew Hill (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/418581l.htm)
LOCKHEED, PARTNERS PLAN SYSTEM OF SATELLITES
Issue: Internet/Satellite
Space-based Internet service may be coming from Lockheed Martin and other
companies that are investing in a four-satellite system called Astrolink.
Yesterday the company's new telecommunications unit announced $900 million
in backing toward the $3.6 billion project. Minority partners in the
enterprise will be Italy's Telecom Italia Group and TRW. Astrolink as
envisioned will be a carrier of high-speed data and video Internet traffic
at speeds many times faster than today's computer modems. Lockheed will
provide the satellites and launch vehicles while TRW will provide the
digital communications equipment. Telecom Italia will supply the ground
equipment and will manage the system. Potential competitors are Spaceway by
Hughes Network Systems and Teledesic led by Microsoft's Bill Gates and
cellular pioneer Craig McCaw.
[SOURCE: Washington Post (E10), AUTHOR: Tim Smart]
(http://www.washingtonpost.com/wp-srv/business/feed/business926072012262.htm)
WWW.IHATE
Issue: Internet Content
The messages of hate are not new, but the medium is. It's relatively easy to
stumble across Internet web sites that provide hatemongering of every stripe.
"The Web site is basically a multimedia advertisement," said Rabbi Abraham
Cooper, associate dean of the Simon Wiesenthal Center, a research and
educational association based in Los Angeles. "The Internet is best
understood and still mostly used by young people," Cooper said, "and a
natural tendency of youngsters has nothing to do with the Net. It has to do
with being a teenager and wanting to go where you think adults don't want
you to even take a look." Mark Potok, editor of the Southern Poverty Law
Center's Intelligence Report, a quarterly journal covering the Radical
Right, said, "There's no question that the Net has been very important to
hate groups in this country. "Four or five years ago for a Klansman to
produce a shoddy pamphlet that might reach 100 people was quite an
enterprise. It involved finding a printer who would print it, which was
often very difficult. It involved a good deal of labor in terms of doing the
writing and so on. "On the Net, these people, if they're not literate, can
just go to other sites and copy down what they want onto their site. That
has clearly increased both the propaganda reach and the recruitment reach."
The Simon Wiesenthal Center and the Southern Poverty Law Center are tracking
the growth of hate Web sites and the Anti-Defamation League (adl.org)
provides software to filter these sites. David Goldman, founder and director
of HateWatch, a Web-based educational resource organization to combat online
bigotry said: "The issue is not getting bigots not to be bigots. That's
banging your head against the wall. It's reaching out to good people in the
U.S. and throughout the world who know that this stuff is vile and insidious
and (inspiring) them to speak up. It's apathy that allows this poison to grow."
[SOURCE: Chicago Tribune (Sec 5, p.1), AUTHOR: Connie Lauerman]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905070031,00.html)
SCHOOL'S ONLINE PUBLICATION FACE CURBS OF THEIR OWN
Issue: Education/Journalism/Technology
Many high school newspapers are publishing online in order to foster a dialogue
with their community, keep in touch with alumni, and feature interactive
surveys. However, administrators are putting different restrictions on online
versions of high school papers than print to protect kids' identities.
Administrators, such as those of Maize High School (KA), are not permitting
students to publish the last names of students in the online version of
their school paper, Express. Other schools are requiring permission from
parents before publishing a student's photo. Many high school journalism
teachers disagree with this policy saying it hinders their ability to teach
the true power of the medium. Sue Moeschl, director of information services
for Carmel Clay Schools (IN) explains why they have been cautious since they
began publishing online: "It almost seems silly in a way, but there has been
so much written about pedophiles on the Internet searching for little kids
to abuse." A 1974 law, written long before the Internet -- The Federal
Education Records Privacy Act -- limits the information schools can give out
about students. Mark
Goodman, executive director of the Student Law Center in Arlington (VA), says
"We have to ask, is it wise for us to cut off on one of the new potential
avenues to let kids express what they are thinking and feeling. It seems a much
wiser choice to channel kids into a school sponsored publication."
[SOURCE: New York Times, AUTHOR: Lisa Napoli]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/07schools.html)
MERGERS
BILL WOULD PRESSURE FCC ON MERGERS
Issue: Mergers
The Senate Judiciary Committee's Antitrust Subcommittee has just sent a
bill, which would set deadlines for the FCC's approval of mergers, to full
committee for consideration. The measure would give the FCC 180 days to
consider mergers valued at more than $15 million, and only 90 days to act on
smaller mergers. The Commission would have the ability to extend the review
period by 60 days for large deals and 30 days for small deals, if a majority
of the 5 commissioners agree to its necessity. Before becoming a law, the
bill must still receive the approval of the House, the Senate, and the
President.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/WAPO/19990506/V000252-050699-idx.html)
MICROSOFT WINDOWS HEADS FOR TV SET
Issue: Mergers/Broadband
One may soon have to look no father than their TV set to find signs of
Microsoft software. In a 'nonexclusive' deal with Microsoft, AT&T agreed to
use Microsoft Windows CE software in set-top boxes that will deliver digital
TV, phone, and high-speed data services. The long distance company, which
will receive a $5 billion investment by Microsoft, has emphasized that the
deal will not give Microsoft a lock on cable software services for AT&T.
AT&T's Chairman, Michael Armstrong, required Microsoft to make an
interoperability pledge ensuring compatibility between software and hardware
of various vendors. As part of the complex pact to purchase MediaOne, this
agreement is a move toward Microsoft's goal of accelerating deployment of
high-speed data services, which they hope will drive demand for their
software. [And if you are still just scratching your head trying to figure
out who merged with whom, don't worry you are not alone.] According to
Microsoft's CFO Greg Maffie: "This is one of the most complex deals...I've
ever seen."
[SOURCE: Wall Street Journal (A3), AUTHOR: David Bank, Don Clark, and
Rebecca Blumienstien]
(http://wsj.com)
See also:
GUSTY AT&T DEALMAKING ALSO TECHNOLOGICAL GAMBLE
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905070286,00.html)
ADS ATTACK AT&T-MEDIAONE DEAL
Issue: Merger/Politics
"AT&T to America: The Electronic Frontier Is Closed," declared a nearly
full-page ad published in Wednesday's editions of several of the largest US
newspapers. A Washington consortium called Keep America Connected and local
telephone companies placed the ad prior to the announcement of AT&T's deal
to acquire MediaOne group. It was the first salvos of what could be a loud
and well-funded political campaign against the merger. Critics say that
AT&T's MediaOne and TCI purchases and other minority investments will cede
excessive control and influence to AT&T. And with Microsoft investing $5
billion in AT&T, the software powerhouse will gain access to the home, a
situation opposed by Mark Cooper of Consumers Union who says, "This is like
one big cartel." On Wednesday, Senate Antitrust Committee members Mike
DeWine (R-OH) and Herb Kohl (D-WI) called for hearings next month on the
deal. AT&T contends the merger will be good for consumers, bringing real
competition into local phone service.
[SOURCE: Washington Post (E1), AUTHOR: Mark Leibovich]
(http://www.washingtonpost.com/wp-srv/business/daily/may99/backlash7.htm)
FCC STAFF CITES FLAWS IN PHONE DEAL PLAN
Issue: Regulation
Staff investigators for the Federal Communication Commission said the proposed
SBC Communications and Ameritech merger "flunks the public interest test." At a
public hearing in Washington yesterday, staff's opposition, to the deal "might
indicate" that the companies would have to make concessions before the deal
could go through. The five commissioners who must vote on the merger were not
present at the public hearing yesterday. A spokesperson for SBC played down the
significance of the FCC's opposition: "We didn't hear anything we hadn't heard
before." The law requires the FCC to determine that the merger would serve the
public interest before the agency can approve the deal. Opponents of the merger
have suggested requiring SBC and Ameritech to demonstrate they have met the
goal of the 1996 Telecommunications Act -- aimed at stimulating local phone
competition -- before it gains the FCC's approval. To satisfy Justice
Department antitrust concerns, the two companies have divested themselves of
overlapping cellular phone service.
[SOURCE: New York Times (C2), AUTHOR: ]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/07cable.html)
See also:
FORUM OPENS ON TELECOM MERGER
[SOURCE: San Jose Mercury News]
(http://www.mercurycenter.com/svtech/news/indepth/docs/fcc050799.htm)
FCC STAFF LEANING TO CONDITIONS ON MERGER
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Frank James]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905070285,00.html)
FCC
A NEW FCC FOR THE 21ST CENTURY
Issue: FCC
Chairman Kennard today announced that he will convene three public forums to
discuss the future of the Federal Communications Commission in the 21st
Century. The purpose of the forums is to assist the Chairman in preparing a
five-year strategic plan that would outline a timetable for restructuring
and streamlining FCC functions and management. Each of the forums will be
held in the Commission Meeting Room at 445 12th Street, S.W., Washington,
D.C. All three forums will be open to the public, and seating will be
available on a first come, first serve basis. Kathryn Brown, the FCC's Chief
of Staff, will moderate the discussion at each forum. The forums will be
carried live on the Internet, barring any technical difficulties. Internet
users may listen to the real-time audio feed of the forums via the FCC
Internet Audio Broadcast Home Page. Step-by-step instructions on how to
listen to the audio broadcast, as well as information regarding the
equipment and software needed, are available on the FCC Internet Audio
Broadcast Home Page. The URL address for this home page is
http://www.fcc.gov/realaudio/. Persons or organizations interested in
participating in the forums should contact the following persons: May 21st
Industry Forum -- Stephen Klitzman, (202) 418-1913; June 2nd Consumer, State
and Local Government Forum -- Ellen Blackler, (202) 418-0491; June 11th
Academic and Organizational Experts Forum -- Lisa Sockett, (202)418-2668.
News media contact: Maureen Peratino at (202) 418-0500. In order to solicit
this input, each of the public forums will be divided into three sessions
lasting approximately one hour each: 1) What Should the FCC's Role Be in the
21st Century?, 2) How Should the FCC Be Structured in the Communications
Marketplace of the Future?, and 3) How Can the FCC Work More Efficiently and
Effectively to Deliver Services to the Public? An e-mail site has been
established to receive additional input from the public on the above
questions. The e-mail address is (newfcc( at )fcc.gov). In addition, time
permitting, views and/or questions received during the course of the public
forums via this e-mail site will be addressed at the public forums along
with the views of the attendees. For more info, see A New 21st Century
Webpage (http://www.fcc.gov/21st_century/) or Benton's
(http://www.benton.org/Policy/FCC/fcc031899.html)
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/Public_Notices/1999/pnmc9035.html)
MAGAZINES/ADVERTISING
HOT RESPONSE FOR BUDWEISER GAY ADS
Issue: Advertising
After receiving a flood of email, Anheuser-Busch set up a hotline for people
to call-in their support for a Bud Light ad featuring two men holding hands
in the April 22 issue of EXP magazine -- a free St. Louis publication. The
ad's tagline [no relation to taglang] -- "Be Yourself and Make It a Bud
Light." The magazine is distributed at mainstream outlets and geared toward
gays and lesbians. In addition to supporters of the ad, Conservative
Christian leader Jerry Falwell found the ad and encouraged Anheuser-Busch to
set up a hotline for those opposing the ad. Falwell wrote, "Let's keep the
heat on Anheuser-Busch so that they understand that pro-family Americans are
terribly concerned about homosexual images coming into our homes through
reckless advertising campaigns." Anheuser-Busch says they are surprised to
see a print ad attracting so much attention. The beer maker claims that
"Today's consumer is not one of a specific gender, race, geography, or
orientation."
[SOURCE: Washington Post, AUTHOR: ]
(http://www.washingtonpost.com/wp-srv/WAPO/19990507/V000446-050799-idx.html)
MAGAZINE CONTENT RULES ARE NO FAVOR TO CANADIANS
Issue: Magazines/International
(Op-ED) The Canadian Senate is currently debating a bill that would restrict
the ability to sell advertisements in non-Canadian publications distributed
in Canada. Bill C-55, which is intended to protect both the Canadian economy
and culture, focuses on the Canadian editions of foreign magazines, many of
which are from America. If passed by the Senate, these publications would no
longer be allowed to sell marketing aimed at the Canadian market. Stephan
Schwartz dismisses claims -- like that of Len Carter, an officer of the
Canadian Media Guild -- that such protections are "essential to the survival
of (Canadian) culture." The culture argument, according to Schwartz is
simple a "red herring". While the bill's intent may be to protect the
Canadian publishing industry, Stephen Schwartz suggests that it will harm
efficiency and growth, not encourage it. [Trust the WSJ to make decisions
about culture]
[SOURCE: Wall Street Journal (A19), AUTHOR: Stephen Schwartz]
(http://wsj.com)
LOBBYING
MICROSOFT'S WINDOW OF INFLUENCE
Issue: Politics
Four years ago the political action committee for Microsoft was financed
with a paltry $16,000. Chairman Bill Gates boasted that Washington was not
"on our radar screen." Times have changed, partly due to the government's
antitrust lawsuit against the software giant. Microsoft now has a 10-person
staff in downtown DC supplemented by a battalion of outside lobbyists. The
company has embarked on an all-out crusade to win friends in Washington that
draws from every page of the traditional political influence playbook.
Overall, political donations by Microsoft and its employees increased more
than fivefold in the last election cycle to $1.4 million, and expectations
for the PAC alone are running about $1 million for the 2000 election,
putting it in the top tier of corporate PACs. The firm almost doubled its
lobbying spending last year, to $3.7 million and has retained a Who's Who of
consultants with Republican names like Michael K. Deaver and Haley Barbour
and Democrats that include Thomas J. Downey and Vic Fazio. Microsoft has a
simple story to tell lawmakers on Capitol Hill: It would be unfair to
penalize a company for success that has helped set off the country's
economic boom.
[SOURCE: Washington Post (A1), AUTHOR: Rajiv Chandrasekaran & John Mintz]
(http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm)
ECONOMY
GREENSPAN CREDITS TECHNOLOGY
Issue: Budget Issues
Federal Reserve Chairman Alan Greenspan said yesterday that an unexpected
leap in technology is primarily responsible for the nation's "phenomenal"
economic performance and the current extraordinary combination of strong
growth, low unemployment, low inflation, high corporate profits and soaring
stock prices. In a Chicago speech Greenspan indicated he believes the US
economy can continue to grow more rapidly than in the past without producing
inflation. He built his case around technological innovations, most of which
involve computers and other information-processing equipment. This
technology has helped businesses operate more efficiently, allowing them to
control costs and increase profits without raising prices, Greenspan concluded.
[SOURCE: Washington Post (A1), AUTHOR: John M. Berry]
(http://www.washingtonpost.com/wp-srv/business/longterm/fed/fed.htm)
--------------------------------------------------------------
...and we are outta here. Have a great weekend.