DIGITAL DIVIDE
'1984' Again: GlobalPC Tries PC for the Masses (USA)
INTERNET
SBC to Give Free Computers to Two-Year DSL Customers (WSJ)
New Project Promotes Civil Society (EPIC)
FTC Is Set to Challenge Toysmart.com To Prevent the Sale of
Consumer Data (WSJ)
Internet Firms Shun Banner Ads In Favor of 'Affiliate Marketing' (WSJ)
Icann Considers Adding Domain Names But Reaching An
Agreement Is Difficult (WSJ)
WIRELESS
Wireless Unit Makes Sprint a Likely Takeover Target (NYT)
Cellular Internet Is a Format War for Carriers (NYT)
DIGITAL DIVIDE
'1984' AGAIN: GLOBALPC TRIES PC FOR THE MASSES
Issue: Digital Divide
A company called MyTurn.com will begin selling in four cities a $300
personal computer intended to be a hit with the 50% of the country that
doesn't own a PC. The computer, called GlobalPC, can be hooked up to a TV or
used with a $180 monitor. GlobalPCs are run by the GEOS operating system,
which has been around since the 1980s, through a 486 chip, 20 megabytes of
RAM, a 4.3-gigabyte hard drive and a 56 kilobits-per-second modem. "In the
15 years computers have been out there, they've become more complicated,"
says Michael Fuchs, MyTurn.com's interim CEO. "They have more capacity than
90% of people using PCs at home need." Most of the profit will come from an
Internet service designed for the GlobalPC, which will cost users about
$20/month
[SOURCE: USAToday (2B), AUTHOR: David Lieberman]
(http://www.usatoday.com/usatonline/20000710/2440243s.htm)
INTERNET
SBC TO GIVE FREE COMPUTERS TO TWO-YEAR DSL CUSTOMERS
SBC Communications Inc. announced it will give personal computers to
customers who sign a two-year contract for its high-speed Internet service,
aiming to boost usage of superfast digital subscriber line (DSL) phone
lines. San Antonio-based SBC, which is deploying DSL throughout its region,
said it plans to charge consumers about $60/month for the entire package.
That includes a new Compaq desktop computer pre-installed with a DSL modem
and SBC's Internet access service. Users also have to pay a $198 shipping
and handling charge for the computer. The promotion, a first for a Bell,
will be available through August to SBC customers in six states, including
California, Texas and Oklahoma. The company plans to expand the promotion to
other states later. While SBC's latest promotion will likely attract more
users, it is primarily aimed at helping SBC overcome some installation
glitches that have plagued DSL rollout. SBC and others are struggling to
keep up with demand for DSL as the number of requests outpaces the
technicians able to install the service quickly. SBC says it is installing
about 3,500 DSL lines/day. Each installation can take several hours and
sometimes requires multiple visits to a customer's home. That can
significantly drive up labor costs for SBC. By going the self-install route,
SBC is hoping to ease some of that burden.
[SOURCE: Wall Street Journal, AUTHOR: Deborah Solomon And Scott Thurm]
(http://interactive.wsj.com/articles/SB963184038230829970.htm)
NEW PROJECT PROMOTES CIVIL SOCIETY
Issue: Internet
The Internet Democracy Project (http://www.internetdemocracyproject.org/),
organized by EPIC, the ACLU, and Computer Professionals for Social
Responsibility (CPSR), launched on July 6. Promoting public participation in
Internet governance, one of the organization's first projects is encouraging
public involvement in the upcoming Internet Corporation for Assigned Names
and Numbers (ICANN) meeting in Japan.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)
FTC IS SET TO CHALLENGE TOYSMART.COM TO PREVENT THE SALE OF CONSUMER DATA
Issue: Privacy
On Friday, the Federal Trade Commission voted to go to court against
Toysmart.com which is seeking to sell data about its customers -- names,
addresses and buying habits -- despite a guarantee "never" to share such
information. the case could set a precedent against such data sales when
they contradict earlier company policies. More such data sales are expected
as the first major wave of Web-retailing failures plays out. Disney owns 60%
of Toysmart stock and controls three of five board seats, according to
records. Disney provided $20 million in cash and about $25 million in
advertising to the firm before deciding this spring to pursue other priorities.
[SOURCE: Wall Street Journal, AUTHOR: Glenn R. Simpson (glenn.simpson( at )wsj.com)]
(http://interactive.wsj.com/articles/SB963183247819995267.htm)
INTERNET FIRMS SHUN BANNER ADS IN FAVOR OF 'AFFILIATE MARKETING'
Issue: Advertising
Dot.coms are turning to "affiliate marketing," an online marketing strategy
that allows e-commerce companies to place links on hundreds or thousands of
related sites without paying for these links up front. The merchant provides
either a flat fee or a commission (usually 10% or less) to the affiliate
sites for every purchase that results from the links. For example, a site
devoted to skiing contains links to retailers that sell ski equipment. If a
Web surfer clicks on the link and buys merchandise from the retailer, the
retailer pays the content provider a commission on the sale."From the
advertiser's standpoint, it is Nirvana," says Jim Nail, a senior analyst at
market research firm Forrester Research. "You get the exposure, but you
don't pay a dime for it unless you make a sale." "Affiliate marketing" is
picking pace faster in Europe than in the US, although Europe presents
specific challenges to companies setting up networks of affiliate marketers.
According to Gordon Hoffstein, president and chief executive of Be Free, an
online marketing concern that manages affiliate marketing programs, in the
U.S., one retailer deals with 250 million people while in Europe, a company
may have six or seven different offices that deal with the same number of
people. "It makes building an affiliate network more challenging." In spite
of these challenges, analysts predict that partnerships between Web sites in
the form of affiliate programs will play an increasingly important role in
the online marketing landscape, posing a threat to online Web banner ads.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Sarah Ellison]
(http://interactive.wsj.com/articles/SB963163700502011981.htm)
See Also:
Yahoo! Is Pressed to Reveal More Numbers on Ad Revenue
[SOURCE: Wall Street Journal (), AUTHOR:Mylene Mangalindan]
(http://interactive.wsj.com/articles/SB963184612223420932.htm)
ICANN CONSIDERS ADDING DOMAIN NAMES BUT REACHING AN AGREEMENT IS DIFFICULT
Issue: Internet
Internet Corporation for Assigned Names and Numbers (Icann) meets this week
in Yokohama, Japan, to consider adding domain names such as dot-movie,
dot-protest, and even dot-sex to the familiar .com, .net and .org. If ICANN
succeeds, the Net will stay easy to navigate. Just as our growing phone
system constantly needs more area codes, the Internet needs more domain
names. Adding them is as effortless as changing a few lines of programming
code, but agreeing to do so is tough. According to Richard Forman, chief
executive of Register.com, a New York company that registers Internet
addresses, "every time you work on something revolutionary, it's not easy to
do." Last month, several countries complained of taxation without
representation when Icann tried to collect nearly $1.5 million for domain
suffixes specific to countries, such as ".uk" for United Kingdom. The money
makes up almost one-third of Icann's budget. Then Afternic.com, which
brokers existing domain names in the United States, sued Icann over
permission to register new ones. In a settlement announced Friday, Icann
agreed to the request, with conditions. Larger issues are contentious as
well. When Icann proposed a council to appoint its board, civic groups
complained the process was undemocratic. Icann caved in and will let
Internet users directly elect five of 19 board members. The new global names
would be the first since the Net went commercial and would show whether
Icann can formalize a system run informally since the Internet's birth 30
years ago.
[SOURCE: Wall Street Journal, AUTHOR: Associated Press]
(http://interactive.wsj.com/articles/SB963189513615266696.htm)
WIRELESS
WIRELESS UNIT MAKES SPRINT A LIKELY TAKEOVER TARGET
Issue: Wireless/Mergers
"Sprint has almost everything that a company wanting to expand in the U.S.
would want," said Brian Hayward, manager of the $3.6 billion Invesco
Telecommunications Fund in Denver. "But what really makes it attractive is
extensive digital nationwide wireless coverage, because that's where many
people are betting the future is at." This is another in a series of
groundbreaking articles predicting that some company -- and this articles
names Deutsche Telekom, BellSouth, and Nippon Telegraph and Telephone -- may
want to buy Sprint with the demise of its deal with MCI WorldCom. Sprint
PCS, the company's wireless subsidiary, operates the largest all-digital
wireless network in the United States, covering an area that reaches more
than 70 percent of the population. Aided by revenue from wireless Internet
services that were recently introduced, Sprint PCS' average monthly revenue
per user is $54, which is 30 percent higher than the industry average. The
network ranks #4 in total US wireless subscribers behind Verizon Wireless,
SBC/BellSouth and AT&T Wireless.
[SOURCE: New York Times (C6), AUTHOR: Simon Romero]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/10spri.html)
CELLULAR INTERNET IS A FORMAT WAR FOR CARRIERS
Issue: Wireless
The most promising technological development since the Internet itself [and
sliced bread, of course] is wireless Internet, which provides Web access on
devices like pagers, cell phones and Palm hand-held devices. In two or three
years, there are expected to be almost as many wireless Internet users
worldwide as people accessing the Web on wired PCs. But there are a number
of technological glitches that need to be solved first including deciding
between competing technical standards. "We're in the euphoria phase right
now, where the future seems very bright," said Jane Zweig, executive vice
president of Herschel Shostek Associates, a wireless research firm. "But
pretty soon we'll get to the pain phase, when the complications of the
wireless Internet will become apparent. Then it'll take a while to get to
the pleasure and perfection phases."
[SOURCE: New York Times (C1), AUTHOR: Simon Romero]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/10wire.html)
See Also:
'NEXT BIG THING' HAS BIG PROMISE BUT A FEW KINKS
[SOURCE: New York Times (C1), AUTHOR: Saul Hassell]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/10apps.html)
See Also:
THE FUTURE OF WEB MUSIC: LISTEN ON YOUR CELL PHONE
[SOURCE: Wall Street Journal, AUTHOR: Tom Weber]
(http://interactive.wsj.com/articles/SB96318412946396319.htm)
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