Communications-Related Headlines for July 17, 2002

INTERNET
Senate Continues Funding For Federal Technology Programs
Net Radio Appeals on Royalties
Hispanics' Use Of Web Surges

BROADCAST
Small TV Stations Reel Under Order to go Digital

SOFTWARE
Wal-Mart Computers Without Windows

INTERNET

SENATE CONTINUES FUNDING FOR FEDERAL TECHNOLOGY PROGRAMS
Tuesday, two Senate appropriations subcommittees decided to fund the two
important community technology programs - the Technology Opportunities
Program and the Community Technology Centers program - at levels comparable
to last year's amounts, despite the Bush Administration's recommendation to
eliminate these programs in their FY03 budget. Under the leadership of
Senators Tom Harkin (D-IA) and Arlen Specter (R-PA), the Senate Labor,
Health and Human Services and Education Appropriations Subcommittee, voted
to continue funding the CTC program at $32.5. The Senate Commerce, Justice,
State and the Judiciary Appropriations Subcommittee, under the leadership of
Ernest Hollings (D-SC) and Judd Gregg (R-NH), voted to continue funding the
Technology Opportunity Program at last year's level.
[SOURCE: Digital Empowerment Campaign]
(http://www.civilrights.org/library/detail.cfm?id=9563)

NET RADIO APPEALS ON ROYALTIES
A group of broadcast radio stations have asked a federal appeals court to
rule for parity between broadcast and Internet royalty fees. The recent
decision by the U.S. Copyright Office mandates that radio stations pay
musicians and recording companies when music is "streamed" over the
Internet. Over-the-air broadcasts, however, are not subject to the same
fees. Historically, radio stations have only had to pay a per-song royalty
to songwriters but not to performers or anyone else with rights to the
performance of a song. The appealing group says that the new ruling is a
misinterpretation of Congressional intent. The broadcasters say that
Congress intended the law to apply only to services that would enable users
to download songs, not online radio broadcasts that do not allow users to
save songs. Webcasters did not participate in the appeal, nor was there any
immediate response from the Recording Industry Association of America.
[SOURCE: Wired News, AUTHOR: Reuters]
(http://www.wired.com/news/politics/0,1283,53896,00.html)

HISPANICS' USE OF WEB SURGES
According to Nielsen/NetRaitings, Hispanics' use of the World Wide Web at
home is growing faster than that of any other ethnic group in the United
States. The online Hispanic population grew 13 percent, compared with an
overall Web population growth of 3 percent, Nielsen/NetRatings found. The
online growth of the Hispanic population is "a great opportunity for
marketers and businesses," said Carolyn Clark, a media analyst at
Nielsen/NetRatings, based in New York.
[SOURCE: New York Times, AUTHOR: Allison Fass]
(http://www.nytimes.com/2002/07/17/technology/17TBRF2.html)
(requires registration)

BROADCAST

SMALL TV STATIONS REEL UNDER ORDER TO GO DIGITAL
It seemed like a good idea in 1997. That's when the federal government
ordered a national conversion from analog to digital television by 2006.
They wanted to spur the development of high-definition TV (HDTV); they
wanted to free-up spectrum. Most of all, it seems, they wanted to raise
billions of dollars by selling the unused spectrum to wireless companies.
The transition has been anything but smooth, however. Consumers have shown
little interest in expensive digital TV sets, cable companies resisted
carrying both analog and digital signals during the transition phase and the
cost for an analog station to convert to digital is astronomical. "These
guys have really got a problem," says Sanford C. Bernstein's Tom Wolzien.
"It can cost $3 million to convert to digital. But a smaller TV station is
lucky if it makes $300,000 a year in free cash flow." Now, smaller stations
especially, are wondering if they will be able to make the change at all in
the midst of a recession. Last November, the FCC offered some relief,
allowing stations to file for extensions on the basis of financial hardship.
The FCC also cut the requirement that digital signals must reach everyone in
a station's current broadcast territory. While this allows stations to spend
far less money in equipment, it also threatens to leave many remote
customers without any television signal.
[SOURCE: USA Today, AUTHOR: David Lieberman]
(http://www.usatoday.com/life/cyber/tech/2002/07/17/digital-tv.htm)

SOFTWARE

WAL-MART COMPUTERS WITHOUT WINDOWS
Wal-Mart's online shopping site is now selling inexpensive computers without
the Microsoft Windows operating system. Saying that it wants to offer
customers more options, Wal-Mart is offering the computers with LindowsOS,
based on the open-source Linux operating system. Wal-Mart says it began
marketing the computers in response to customer requests for Linux systems.
"We're simply offering this to a specific niche looking for this specific
operating system," said spokeswoman Cynthia Lin. Last December, Microsoft
sued San Diego-based Lindows on the grounds that the product is too similar
to Microsoft's own Windows system. This March a federal court ruled that it
would not block the small startup's software from using the name Lindows. A
Microsoft spokesman indicated that the software giant intends to pursue its
claim in order to protect its trademark.
[SOURCE: The Washington Post, AUTHOR: Caryn Rousseau, Associated Press]
(http://www.washingtonpost.com/wp-dyn/articles/A14676-2002Jul16.html)

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