Communications-related Headlines for 10/5/2000

POLITICAL DISCOURSE
FCC Suspends 2 'Fairness' Regulations (WP)

EDTECH
Debate Over School Computers (NYT)

DIGITAL DIVIDE
Data Basics (WP)

MERGERS
EMI, Time Warner Call Off Plan to Combine Music Units (WSJ)
Unions And Chamber Of Commerce Join To Ease The Way For Voicestream
Deal(WSJ)

PRIVACY
Marketers, Privacy Forces Are No Closer to Consensus (WSJ)

WIRELESS
Verizon Supports 'Hands Free' Laws (NYT)

POLITICAL DISCOURSE

FCC SUSPENDS 2 'FAIRNESS' REGULATIONS
Issue: Political Discourse
In response to broadcasters' challenges, the FCC yesterday suspended two
controversial rules requiring television and radio stations to give
political candidates and individuals free air time to respond to campaign
endorsements or personal attacks. The rules were suspended due to repeated
challenges from broadcasters that contended that the regulations violate
their right to free speech. The FCC's decision comes at the point in the
political season when the rules were most likely to be invoked. Broadcasters
argue that the regulations have made them reluctant to endorse candidates
and that the rules no longer make sense in a world with so many outlets for
politicians to express their views. The FCC is considering how to revise the
rules, but broadcasters expressed concern that the agency will use the
proceeding to resurrect the broader Fairness Doctrine, a federal policy that
required TV and radio stations to cover controversial issues, provide
balanced coverage and give free response time to individuals or groups
covered by a station's news report. "It is outrageous that the FCC refuses
to discard tired regulations that stifle free speech rather than enhance
it," National Association of Broadcasters President Edward O. Fritts said in
a prepared statement.
[SOURCE: Washington Post (E01), AUTHOR: Christopher Stern]
(http://washingtonpost.com/wp-dyn/articles/A12892-2000Oct4.html)

EDTECH

DEBATE OVER SCHOOL COMPUTERS
Issue: EdTech
Last month, a little-known organization called the Alliance for Childhood
issued a statement calling for a moratorium on the further introduction of
computers into the nation's elementary schools until more is known about
their effect on young children. Reactions to the group's 100-page report
"Fool's Gold: A Critical Look at Computers in Childhood," have been mixed.
Gary Chapman, director of the 21st Century Project at the University of
Texas at Austin, is known for his occasional critical view of computers, but
refused to sign the statement. He considered the call for a moratorium too
extreme. On the other hand, Dr. Larry Cuban, a professor of education at
Stanford University, signed on to Alliance for Childhood's statement. Dr.
Cuban recently conducted research on preschooler and kindergartener use of
computers in the classroom and determined that their use is benign, but
none-the-less supported the group's statement. He said it was "worthwhile to
call a halt to all the hype about the importance of this." "If anything, it
raises questions about the expenditures and how pressured schools are to
adopt technology," said Cuban.
[SOURCE: New York Times (E8), AUTHOR: Katie Hafner]
(http://www.nytimes.com/2000/10/05/technology/05KIDS.html)
(requires registration)
See Also:
A DAY IN THE LIFE OF THE WIRED SCHOOL
[SOURCE: New York Times (E1), AUTHOR: Bonnie Rothman Morris]
(http://www.nytimes.com/2000/10/05/technology/05SKOO.html )
(requires registration)

DIGITAL DIVIDE

DATA BASICS
Issue: Digital Divide
It comes as no surprise that a study recently conducted by the Gartner
Group, a Stamford, Conn.-based consulting company, found there is a major
digital divide among socioeconomic groups in the United States. What may be
more surprising is the "experience gap" it identified. "There is an entire
socioeconomic group that is now one generation behind in terms of
[technology] experience," said Michael Fleisher, Gartner chief executive.
The report concluded that those without computers at home cannot catch up to
their counterparts who have Internet access at home, despite the
availability of public access to the Internet through libraries, schools or
work. Moreover, high-speed DSL connection will aggravate the gap. Fleisher
presented the study's findings to the House subcommittee on government
management, information and technology. Fleisher suggested ways the
government could help to close the digital divide including: providing tax
incentives to companies that offer home computers, Internet access and
telecommuting opportunities to employees and the government providing
computers to gov't employees.
[SOURCE: Washington Post (E04), AUTHOR: Amy Joyce]
(http://washingtonpost.com/wp-dyn/articles/A13160-2000Oct5.html)

MERGERS

EMI, TIME WARNER CALL OFF PLAN TO COMBINE MUSIC UNITS
Issue: Merger
EMI and Time Warner said Thursday that they have terminated their agreement
to combine EMI Music with Warner Music Group, a day after the Wall Street
Journal reported that the European regulators were considering approving the
proposed $20 billion combination of the music. The two companies have told
the European Commission that they are withdrawing their current application
for approval of the proposed $20 billion combination. The commission had
indicated to the companies that their latest asset-sale offers weren't
enough to get approval to avoid the market-testing process that the
commission undergoes. People familiar with the situation said Wednesday that
the EU was poised to block the EMI-Time Warner link, but looked favorably on
the Time Warner-AOL merger. The decision to abandon the venture is expected
to clear the way for European Union regulatory approval of the separate $135
billion merger between Time Warner and America Online. Uncertainty over the
EMI-Time Warner deal had been the major obstacle holding up approval of the
AOL merger, because the commission claimed that a giant AOL-Time Warner-EMI
combination could dominate the market for the digital distribution of music.
[SOURCE: Wall Street Journal (A3), AUTHOR: WSJ.COM News Roundup]
(http://interactive.wsj.com/articles/SB970734357798394211.htm)
(Requires subscription)
See Also:
WARNER MUSIC, EMI MUSIC MERGER OFF
[SOURCE: San Jose Mercury, AUTHOR: Associated Press]
(http://www.sjmercury.com/business/bizwire/docs/479975l.htm)

UNIONS AND CHAMBER OF COMMERCE JOIN TO EASE THE WAY FOR VOICESTREAM DEAL
Issue: Merger
Deutsche Telekom's proposed acquisition of VoiceStream Wireless will get a
boost from unions and the U.S. Chamber of Commerce, two usually bitter
opponents. Communication Workers of America President Morton Bahr, AFL-CIO
President John Sweeney and Chamber of Commerce President Tom Donohue have
scheduled a news conference today, to urge lawmakers to sweep a measure
that would make it harder for companies owned partly by foreign governments
to acquire U.S. telecommunications companies. The bill on Capital Hill would
forbid the Federal Communications Commission from waiving a U.S. law that
prohibits companies more than 25%-owned by a foreign government from
acquiring a domestic communications license. Without an FCC waiver, the
Deutsche Telekom-VoiceStream deal would die. Deutsche Telekom is 58% owned
by the German government, which has promised to eventually sell off its
entire stake. Union officials said they are backing the deal because
Deutsche Telekom enjoys a close relationship with its unions and has a
reputation as friendly to workers and unions. For its part, the Chamber of
Commerce believes current protections are adequate. "If we make a whole
series of rules to keep the U.S. out of the global market, the rest of the
world will gladly leave us behind," Mr. Donohue said.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: YOCHI J. DREAZEN
(http://interactive.wsj.com/articles/SB970704301103146998.htm)

PRIVACY

MARKETERS, PRIVACY FORCES ARE NO CLOSER TO CONSENSUS
Issue: Privacy
With online privacy legislation on the horizon, there is still little
agreement on what that legislation should look like. At a privacy forum
Wednesday in Washington, an advertising executive said the government should
let customers decide for themselves what information to give away to
marketers, while a privacy activist argued that Washington needs to pass
legislation to rein in companies that sell customers' private data.
Representing lawmakers, Rep. Asa Hutchinson (R., Ark.), said the matter
"needs to be studied carefully, and we need to proceed carefully." New
advances in technology have left some to wonder who's watching the watchers.
The Justice Department's controversial Carnivore system -- technology that
allows detectives to eavesdrop on Internet communications -- drew fire from
the panel. "We're not trying to expand law enforcement authority here, we're
trying to embrace technology," said Stephen Colgate, assistant attorney
general for administration. "We need to have the same tools the criminals
have." But Internet users have a right to anonymity if they want it, argued
Austin Hill, president of Zero-Knowledge Systems, a Montreal maker of
privacy software. He said the government needs to be on the side of
consumers when drafting new legislation. Legislation passed too soon would
be a "terrible mistake," Mr. Hutchinson said, but he also said that doing
nothing could be just as bad. "Because this Congress is not acting, there's
greater pressure on state legislatures to act, and then we'll have 50
different laws and consumers won't know what to think," he said. Many
analysts believe a changing of the guard in the White House could be the
catalyst needed to get privacy legislation passed during the next session of
Congress.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: JASON ANDERS
(http://interactive.wsj.com/articles/SB97068375036208111.htm)

WIRELESS

VERIZON SUPPORTS 'HANDS FREE' LAWS
Issue: Wireless
Last week, Verizon Wireless, changing its previous position, is now willing
to support some state legislation that imposes "hands free" requirements on
cell phone use by drivers. "Everyone knows it's sensible to keep both hands
on the wheel," said Mark Tuller, general counsel to Verizon Wireless, "and
we educate our customers to drive sensibly." Verizon is the nation's largest
wireless company. Talking on the phone while driving has been restricted, or
banned outright, in more than a dozen countries, including Israel, Spain and
Brazil. The announcement by Verizon's comes as Chicago lawmakers debate a
partial phone ban. Verizon's rivals, including SBC Communications and AT&T
Wireless Services, as well as the Cellular Telecommunications Industry
Association, a trade group in Washington, continue to oppose legislation
that would restrict cell phone use by drivers.
[SOURCE: New York Times (Online), AUTHOR: Katie Hafner]
(http://www.nytimes.com/2000/10/05/technology/05PHON.html)
(requires registration)

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