INTERNET
Dr. Jesse's Internet Checkup: The Good and Bad News About
the Health of the Web (ZDNet)
A Swirl of Rumored Internet Deals (NYT)
Who Will Play Domain Names Cop On The Net? (SJM)
BROADBAND
AOL, Cable Execs, Sprint Square Off Over Broadband Access (CNN)
Cable, Internet Groups Square Off (Spokane)
PUBLIC BROADCASTING
Corporation for Public Broadcasting Authorization
Act of 1999 (House)
WIRELESS
It Takes a Cell Phone (WSJ)
Development of Mobile Satellite Services (NTIA)
MERGER
Gannett to Buy U.K. Publishing Company (WP)
ANTITRUST
Microsoft Trial Ends with Firm Chastened (WP)
INTERNET
DR. JESSE'S INTERNET CHECKUP:
THE GOOD AND BAD NEWS ABOUT THE HEALTH OF THE WEB
Issue: Internet
THE GOOD NEWS: The Internet will continue strong growth for the next couple
of years: Roughly 180 million people are online worldwide (Nua Internet
surveys), The number of Web sites grew from 1 million to more than 5 million
in the last two years (Netcraft), Two-thirds of U.S. homes will have
Internet access by 2003 (Yankee Group). Traffic: more people are spending
more time on the Web and more are logging in from home. Ecommerce: Global
ecommerce will reach $1 trillion by 2002 -- a 66-fold increase from 1997
(Deloitte Consulting); the number of PCs used for ecommerce activities grew
41% from 1997 to 1998 (Infobeads), 44% of U.S. companies are selling online
now, and 36% more expect to do so in the next 12 months (The Association of
National Advertisers). And demographics are changing so Web users are
starting to look like average citizens. THE BAD NEWS: Infrastructure -- the
Web may be subject to increasing blackouts and periods of unreliability.
Advertising -- less companies are budgeting less and paying less for Web
advertising. Abuse -- 1/3 of Net use in the office is recreational; Internet
scams now rank No. 1 on the list of Top 10 scams (North American Securities
Administrators Association); and 6 million people have reported credit card
frauds online (National Consumers League).
[SOURCE: ZDNet AnchorDesk, AUTHOR: Jesse Berst, Editorial Director]
(http://www.zdnet.com/anchordesk/story/story_3553.html)
WHO WILL PLAY DOMAIN NAMES COP ON THE NET?
Issue: Internet/Legal issues
While both Congress and the Internet Corporation for Assigned Names and Numbers
are considering rules to govern trademark violations on the Internet, the
courts may beat them to the punch in deciding how to apply existing trademark
laws to cyberspace. A San Francisco Court of Appeals has recently heard three
separate cases addressing the toughest issues that still need to be resolved in
relation to registration of domain names. One question is who should police
trademark violations. The other issue is how to handle two parties that both
have legitimate claims to an Internet address. The courts must determine if a
trademarked company has exclusive rights to an address, even if another party
has legitimate rights too. Companies have been quick to threaten to sue people
who have domains they want.
[SOURCE: San Jose Mercury News, AUTHOR: Howard Mintz]
(http://www.mercurycenter.com/svtech/news/indepth/docs/domain062599.htm)
A SWIRL OF RUMORED INTERNET DEALS
Issue: Mergers
Over the past week several rumors about deals between Internet and computer
companies have surfaced on the Net. Following a report on Jagnotes.com, Compaq
confirmed that it is in talks with CMGI, an Internet investment concern. There
is also speculation about Gateway acquiring the Internet service provider
Earthlink. These potential deals illustrate the desire of both computer and
Internet companies to get into each other's business. Gateway has been able to
attract 4000,000 users to its Gateway.net service by offering one free year of
service. Whether these all-in-one packages are the answer for computer and
Internet ventures remains to be seen.
[SOURCE: New York Times (C9), AUTHOR: Saul Hansell]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/25place.html)
BROADBAND
AOL, CABLE EXECS, SPRINT SQUARE OFF OVER BROADBAND ACCESS
Issue: Broadband
A top official at AOL told the House Commerce Committee's Telecommunications,
Trade and Consumer Protection Subcommittee yesterday that Congress must choose
between the "open model" of the Internet or the "closed model" to promote Net
access. AOL has a vested interest in the open access because they want to have
presence in cable television delivery, digital subscriber line (DSL) technology
and other forms of high-speed, or broadband services. AT&T is trying to put a
stop to AOL's cable access as AT&T doesn't want to open its cable systems to
competition, citing cost and complexity. To disarm those arguments, AOL
conducted a recent test with GTE, claiming that it can easily sell access via
local cable networks with the addition of a simple, low-cost router box. Sprint
Corp. Senior Vice President Al Kurtze called on the Subcommittee to open not
only cable companies' local networks, but local phone companies' local loops as
well. Kurtze said efforts by "monopoly" local phone and cable companies to
limit access to existing phone and cable links to the home will leave consumers
"technologically stranded."
[SOURCE: CNN, [AUTHOR: reposted from Newsbytes]
(http://cnnfn.com/news/technology/newsbytes/132499.html
See also:
DEPLOYMENT OF DATA SERVICES
Issue: Broadband
Links to testimony at the House Telecommunications Subcommittee hearing on
the deployment of data services. Witnesses included: Howard A. Lenox, SBC
Telecommunications; Tom Tauke, Bell Atlantic; Dave Scott, Birch Telecom;
Mary Beth Vitale, RMI.NET; Stephen C. Gray, McLeodUSA; Glenn Falcao,
NORTEL Networks; Russ Daggatt, Teledesic; Kirby G. Pickle, Teligent; Al
Kurtze, Sprint; George Vradenburg, AOL; Marc J. Apfelbaum, Time Warner
Cable; and Alex V. Netchvolodoff, Cox Enterprises.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/Witnesses?OpenView&StartK
ey=0B6688530825A0D78525679300553786)
CABLE, INTERNET GROUPS SQUARE OFF
Issue: Broadband
Opening cable systems to multiple ISPs was the issue du jour Wednesday in
the Spokane City Council chambers. Internet On Ramp of Spokane, owned by
California-based Internet Ventures, has lobbied the city and county, trying
to convince officials that TCI should have to open pieces of its network to
Internet service providers (ISPs). On Ramp is arguing that ISPs qualify for
"leased access" rights. cable companies are required by law to lease some of
their channels to outside programmers and On Ramp is arguing that
Internet-video shows are so fast when passed over cable -- 100 times faster
than standard dial-up connections -- that ISPs behave much like video
programmers because customers can choose to watch Internet TV shows. Don
Janke, president of Internet Ventures, said, "The Internet has grown up to
be video," citing agreements that film studios are making to show movies
online. Ken Watts, TCI's general manager in Spokane, maintained "Internet
access is not video programming," and has said TCI will challenge any
government move to open its cable lines to ISPs, as it already has done in
Portland.
[SOURCE: The Spokesman-Review, AUTHOR: Mike Roarke]
(http://www.spokane.net:80/news-story-body.asp?Date=062499&ID=s598577&cat=Co
ntent)
PUBLIC BROADCASTING
CORPORATION FOR PUBLIC BROADCASTING AUTHORIZATION ACT OF 1999
Issue: Public Broadcasting/Budget Issues
Wednesday, June 30, 1999 10:00 a.m. in 2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on the Corporation for Public Broadcasting Authorization Act of 1999.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/schedule.htm)
WIRELESS
IT TAKES A CELL PHONE
Issue: Wireless
What do you do when you live in country where there are only three phones for
every 1000 people? In Bangladesh, through a loan program at the Grameen Bank, a
private commercial enterprise in Dhaka, you could get a loan for a new cellular
phone. Grameen has been offering microloans to villagers to build fish ponds,
buy cattle or machinery. But since the bank can buy the airtime in bulk and
resell it at cost, they are beginning to see the advantages of the digital
world. The villagers buy phones to check on prices of wood, cattle and produce
so the middlemen in Bangladesh no longer scam them. Delora Begum has been
coined the "phone lady" in her village as she lets people use the phone and
makes a small profit which she reinvests in her husbands chicken coup. Mohammed
Yunus, the founder of the Grameen Bank, says he hopes within five years the
network will be nationwide, putting every villager within one mile of a phone.
[SOURCE: Wall Street Journal (B1), [AUTHOR: Miriam Jordan]
(http://wsj.com/)
DEVELOPMENT OF MOBILE SATELLITE SERVICES
Issue: Satellite
NTIA filed comments at the Federal Communications Commission in IB Docket
No. 99-81 and RM-9328 on efforts to provide additional spectrum allocations
for the development of mobile satellite services.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/fccfilings/rm9328_comments62499.htm)
MERGERS
GANNETT TO BUY U.K. PUBLISHING COMPANY
Issue: Merger
Gannet Co., the Arlington, VA-based publisher of 74 daily newspapers in the
U.S., including USA Today, has placed a bid to acquire British media company,
Newsquest PLC. It says it will pay $1.7 billion in cash and assumed debt for
the company, which has been looking for buyers since early this year so that it
can hold its own against the industry consolidation occurring in the United
Kingdom. The deal is not final and Newsquest could receive other offers in the
next week. Gannett's strategy in the U.S. has been to acquire small to
mid-sized papers in one-newspaper towns, but it said the Newsquest union would
be a "good match-up." One media analyst said this was a good strategy because
there is no opportunity to buy U.S. newspapers right now and because
acquisition prices are very high in the U.S. and low in Europe.
[SOURCE: Washington Post (E3), AUTHOR: Shu Shin Luh]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/25/094l-062599-idx.html)
See Also:
GANNETT MAKES 1.5 BILLION BID FOR NEWQUEST
[SOURCE: Wall Street Journal (B2), [AUTHOR: Erin White]
(http://wsj.com/)
ANTITRUST
MICROSOFT TRIAL ENDS WITH FIRM CHASTENED
Issue: Antitrust
After eight months of testimony, the Microsoft trial has ended. Now, it is up
to a federal judge to determine the fate of the world's largest software
company. If the judge rules against Microsoft --which is expected-- the
government could impose aggressive sanctions on the company. But this might not
happen given the recent market changes, including the recent promotion of
Microsoft's rival Linux operating system. George S. Cary, an antitrust
specialist, says: "The trial has helped spur new competition in the market, but
it also shows how a tiny ember like Linux can begin to glow if Microsoft is in
a position where they cannot flagrantly go out and crush it." Microsoft
believes the trial has nothing to do with the new interest in Linux and says it
would have occurred despite the trial. In the meantime, AOL is adopting a more
cautious policy of responding to its competitors by merging its browsing
software and online content. And, Microsoft is finding new ways to do business
by promoting its products without exclusive distribution arrangements. The
ruling on the trial is not expected to occur until late this fall and any
sanctions the judge orders could be delayed for two or three years by appeals.
[SOURCE: Washington Post (E3), AUTHOR: Rajiv Chandrasekaran]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/25/076l-062599-idx.html)
See Also:
MICROSOFT AND JUSTICE DEPARTMENT MET THREE WEEKS AGO TO SEEK WAY TO SETTLE
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke]
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...and we are outta here. Have a great weekend.