March 1999

CABLE/TELEVISION
Public Access Fans Battle Network (Baltimore Sun)
SBS Broadcasting To Acquire Central European Media (WSJ)

MERGERS/TELEPHONY
Phone Merger Moving Ahead (ChicagoTribune)
$200 Million Wireless Deal Reported (NYT)
China To Back U.S. Phone Technology - Daley (SJ Merc)

JOURNALISM
NATO, Belgrade Exploit Absence of Journalists (ChicagoTribune)
Top Court Eyeing 'Ride-Along' Issue (B&C)

ADVERTISING
Speech: Speaking Clearly and Succinctly...(FCC)
Dark Anti-Smoking Ad Turns Networks Off (WSJ)

INTERNET
Politicians Use Web To Raise Funds (SJ Merc)
Cameras In Stores Enhance Online Shopping (SJ Merc)
Direct Web To Give Free PCs To Win Service (WSJ)

CABLE/TELEVISION

PUBLIC ACCESS FANS BATTLE NETWORK
Issue: Cable
In the Baltimore/Washington (DC) area, the Freedom Forum and local PBS
station WETA are trying to launch a new public affairs cable channel. But
since cable channel space is so tight, they are going to cable operators and
asking to "borrow" access channels for 6-18 months. The Alliance for
Community Media, a nonprofit organization that represents public,
educational and government community-access channels, aims to block such
moves. "It's appalling," says ACM's executive director, Bunnie Riedel, of
the Forum Network's strategy of trying to gain control of access channels
now occupied by local community producers as varied as individual musicians,
victims of domestic abuse, school districts and city governments. "The
Freedom Forum is supposed to promote free speech, not try to bury it by
grabbing the people's media," she says. "I understand their desperation.
They have millions of dollars invested in this venture. But they need to
understand that access-channel capacity is for community use." We're not
trying to take anything from anybody," Ed Turner, one of the founding
executives of CNN, said recently. "We want to be partners with the local
producers. The premise of this network is that over the decade, the quality
of journalism on television has diminished to the point where there is very
little for those of us who care about public issues and public policy at the
local, regional and national level." Around the country, access channels are
being folded into public television and PBS President Ervin Duggan says he
thinks access channels would be put to better use if partnered with public
broadcasting. But, at least as the WETA/Freedom Forum deal is concerned,
representatives of local access channels are not convinced: "This proposed
network may have some value, but it's not access. Access is targeted, local
programming created by and for the community. If we give up access channels
to let anything else appear on them, we are giving up on our mission and
reason for being."
[SOURCE: Baltimore Sun, AUTHOR: David Zurawik]
(http://www.baltimoresun.com) 3/27/99
[Thanks to Bunnie Riedel for sending this story our way]

MORE DEALS TO COME
Issue: Mergers
More mergers are to be expected among cable operators, analysts say. As radio
stations have recently consolidated to attempt to dominate cities, so cable
operators are trying to maximize efficiency by dominating by region. As big
players get bigger, markets that have multiple owners, like Los Angeles, New
York, Dallas and Boston, are attractive grounds for industry buyers. "There's
definitely a land rush going on, to gain critical mass in local markets," says
John Waller of Waller Capital, an investment banking specialist. Also, unlike
radio, "the increasingly global nature of telecommunications" is an opportunity
for investors, while a challenge for policy makers, says Marc Gabelli of
Gabelli Asset Management. The history of cable companies' expansion is a rapid
one. Cable companies are now focusing on local ownership, where they used to
take whatever they would be granted by local politicians. Five years ago,
serving 40-50% of cable homes was impressive. Now San Francisco, Chicago and
Houston are served by cable operators that own 80% of the market. Fragmented
markets, such as Philadelphia, Washington, Dallas-Fort Worth, Detroit, and St.
Louis, offer a picture of the companies likely to be involved in mergers. In
Los Angeles, Comcast controls 29% of the market, Adelphia has 24% and Charter
(pending acquisition) will have 19.6%. Brian Deevy, president of Daniels &
Associates, the nations largest cable investment banking firm, says, "In the
last three weeks, AT&T closed on TCI, Adelphia bought Century, and Comcast
bought MediaOne. I think it's fair to call that a peak, but I also think
consolidation continues. There are still a number of deals to be done."
[SOURCE: Broadcasting&Cable (p. 4), AUTHOR: Price Colman and John M. Higgins]
http://www.broadcastingcable.com/

SBS BROADCASTING TO ACQUIRE CENTRAL EUROPEAN MEDIA
Issue: International
SBS Broadcasting has agreed to buy Central European Media Enterprises which
will create Europe's largest broadcasting companies -- holding 18 television
stations and 12 radio stations. Harry Evan Sloan, CEO of SBS, says the new
company will be one of the biggest buyers of international programming and have
increased leverage in negotiating with Hollywood. While SBS has concentrated in
Western Europe and Scandinavia, Central European has attempted to build a base
in Eastern Europe and has struggled with currency fluctuation and the uncharted
territory of privatized TV in the region.
[SOURCE: Wall Street Journal (B10), AUTHOR: Kyle Pope]
(http://wsj.com/)

MERGERS

PHONE MERGER MOVING AHEAD
Issue: Merger
Even though Illinois Commerce Commission staff oppose the proposed
Ameritech-SBC merger, the case's hearing officers have ruled that the deal
will not stifle competition, cause higher phone rates or lead to poorer
service. The hearing officers have recommended just two conditions for the
merger: 1) that the combined company face higher penalties for failing to
meet state standards for restoring service and 2) requiring the company to
rebate any savings from the merger to consumers. "The commissioners are the
final judges, and I doubt that they'll accept the hearing examiners'
proposal without change," said Craig Clausen, a former senior policy adviser
at the ICC. "This proposal does make it unlikely the commissioners would
kill the merger, but I'd bet they will impose some conditions to reflect the
strong fears expressed by the ICC staff." The ruling is a setback for
consumer advocates and others who have opposed the merger. Robert Ruiz,
chief of the Cook County state's attorney, said, "We was robbed." Concerned
parties still have two weeks to submit more arguments related to the order.
A final proposed order will then go to ICC commissioners. [For more info
including the proposed order, see
(http://www.icc.state.il.us/icc/Telecom/Mergers/SBC_AMfiling/0329sched.htm)]
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9903300107,00.html)

$200 MILLION WIRELESS DEAL REPORTED
Issue: Wireless
MCI Worldcom, the nation's number two long distance carrier, has plans to
invest about $200 million in 4 different wireless cable operators: CAI
Wireless systems, CS Wireless Systems, People's Choice, and Wireless One.
These companies use wireless technology to transmit television signals into
people's homes. Although it has not proven cost effective to transmit
television signals via land-based wireless technology, MCI hopes it will be
profitable to use the same technology to transmit Internet data. MCI and
other Internet carriers, frustrated from having to lease lines from local
Bells, are looking for new ways to carry data to and from homes and businesses.
[SOURCE: New York Times (C9), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/03/biztech/articles/30cable.html)

CHINA TO BACK U.S. PHONE TECHNOLOGY - DALEY
Issue: Telephony/International
Chinese Premier Zhu Rongji has told US officials that China will use CDMA
for their mobile phone technology. Use of Code Division Multiple Access
technology in the Chinese wireless systems would mean billions of dollars
for Motorola and Lucent Technologies who made the sale and for Sweden's
Ericsson. Ericsson last week announced a deal to buy the infrastructure
division of Qualcomm, the developer of CDMA. Presently China is using the
European standard for its wireless system but it has trials in a few cities
using CDMA. International telecommunications executives are wary of China
because the country is bidding for acceptance into the World Trade
Organization.
[SOURCE: San Jose Mercury News, AUTHOR: Matt Pottinger (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/288120l.htm)
See also:
U.S. CONCERNS OVER CHINESE MILITARY DAMP CELEBRATION OF NEW TELECOM PACT
This version of the CDMA deal centers on US worries about China's military
involvement with CDMA or rather the government's perception of Commerce
Secretary William Daley being photographed with the owners of the Great
Wall, a Chinese telecom company in charge of the CDMA alternative. Great
Wall is half owned by the Chinese military. Daley will not be at the
Thursday signing ceremony.
[SOURCE: Wall Street Journal, AUTHOR: Ian Johnson]
(http://wsj.com)

JOURNALISM

NATO, BELGRADE EXPLOIT ABSENCE OF JOURNALISTS
Issue: Journalism
Few foreign reporters remain in Kosovo so there is little independent
confirmation of the claims both NATO and Serbian leaders make. Serbia's
state-run television service is highlighting NATO's destruction of civilian
homes, but does not show any causalities in hopes of avoiding a spread of
panic. The world's media reports from the boarders of Serbia and relies on
NATO briefings. The rhetoric of both sides of the conflict equate their
enemy with the German Nazis of the World War II era. On Serbian television
this week: "Wag the Dog" and "Apocalypse Now."
[SOURCE: Chicago Tribune (Sec 1, p.14), AUTHOR: Guy Dinmore]
(http://chicagotribune.com/textversion/article/0,1492,ART-26228,00.html)

TOP COURT EYEING 'RIDE-ALONG' ISSUE
Issue: Regulation/Privacy
A decision is expected in June following arguments made before the US Supreme
Court Wednesday that journalists invade the privacy of citizens being served
warrants when they ride along with police officers. While Justices argued the
rides were in violation of the fourth amendment, media organizations and
advocates of civil liberties argued their views. Barbara Cochran, president of
the Radio-Television News Directors said, "The presence of the media can serve
as a safeguard for people." Arguments have been made by the courts that shows,
like Cops, serve more of an entertainment purpose than a watchdog purpose. John
Langley, creator of Cops, says that a Supreme Court ruling against media
"ride-alongs" wouldn't affect the show because they don't show the servicing of
warrants. He also says he is disturbed by the case, saying, "The moment a
search warrant is issued, there is no longer any reasonable expectation of
privacy." The American Civil Liberties Union says, "the media's watchdog
function does not outweigh individuals' privacy rights." Further, they say
police monitor when ride-alongs can take place, meaning the media doesn't
play an independent role.
[SOURCE: Broadcasting&Cable (p. 14), AUTHOR: Dan Trigoboff]
(http://www.broadcastingcable.com/)

ADVERTISING

SPEECH: SPEAKING CLEARLY AND SUCCINCTLY...
Issue: Advertising/Regulation
Commissioner Ness' remarks before the American Advertising Federation
National Governmental Affairs Conference address: 1) The government's role
in content regulation; 2) non-discriminatory buying practices; and 3) the
future of advertising. Commissioner Ness concludes: "The role of advertising
in American media is not fully appreciated. I hardly need to tell you that
the 65 billion dollars forecast to be spent in 1999 on radio, television,
and cable network advertising fund the production of news, entertainment,
and public affairs programs that we value so highly. It is clear that we
have a rich mix of media in this country because of the effectiveness of
consumer advertising. I hope that you will let your advertising dollars
speak clearly and succinctly to support quality educational programming for
children; to reflect the growing importance of minority audiences in your
non-discriminatory buying practices; and to spur new and innovative
technologies for the American consumer."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Ness/spsn906.html)

DARK ANTI-SMOKING AD TURNS NETWORKS OFF
Issue: Public Service
ABC, NBC, CNN and TBS Superstation have refused to air an anti-smoking ad
distributed by the American Cancer Society's Los Angeles office. The ad,
produced with donated time and equipment from the Hollywood film industry,
parodies a cigarette-company sales promotion -- offering caskets and
chemotherapy for prizes and features a model lounging on the beach with a
ventilator attached to a tube coming out of her throat. While NBC refuses to
say why they will not air it, an ABC spokesperson says it's a policy issue --
they only accept ads from national headquarters. CBS is airing it as is
Viacom/Time Warner's Comedy Central. Ruth Wooden of the Advertising Council, a
nonprofit that produces public service ads, says networks are more sensitive to
public service ads because they feel their name is being stamped on it in a
different way than regular ads. Carla Agar, deputy director of the California
health department, says they are finding teenage populations respond to
messages that are real with an element of shock.
[SOURCE: Wall Street Journal (B10), AUTHOR: Gordon Faircough]
(http://wsj.com/)

INTERNET

POLITICIANS USE WEB TO RAISE FUNDS
Issue: Campaign Finance
The Federal Election Commission allows donors to presidential political
campaigns to make donations by credit card, but it prohibits credit card
donations from counting toward a presidential candidate's ability to qualify
for federal matching funds. The FEC has been concerned that fraud was more
likely with credit card donations. Qualified candidates can get dollar-for-
dollar matching for the first $250 of each private donation they receive
(not including credit card donations) provided they agree to spending
limits. Candidates and their supporters are beginning to question the
process as they point more toward contributions raised via the Internet.
They want credit card donations to be included in the matching fund
qualifying totals since most campaign Web sites have pages that allow
visitors to donate to the candidate, usually by credit card. Former Sen.
Bill Bradley, a Democratic candidate, last week called for the FEC to change
its policy. A Republican fund raiser said the FEC's argument that credit
card transactions are not secure enough is flawed, especially in an era when
consumers can buy everything from books to cars over the Web. A decision
from the FEC is required within 60 days of Mr. Bradley's request, but FEC
representatives say there is still too much danger of fraud.
[SOURCE: San Jose Mercury News, AUTHOR: Douglas Kiker (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/288132l.htm)

CAMERAS IN STORES ENHANCE ONLINE SHOPPING
Issue: Electronic commerce
The interactivity of the Internet strikes again. Perceptual Robotics
recently started putting cameras in retail stores to give shoppers a
real-time view of the goods they are considering for purchase. PRI works
with retailers using its "look and buy" software system to create the
Internet site. PRI's cameras take a string of still pictures requested by
the online user, allowing them to view the scene from different angles and
to zoom in or out. [For an example, try (http://www.galleryfurniture.com),
the Web site of Gallery Furniture, a Houston-based furniture superstore.]
Donna Hoffman, a management professor at Vanderbilt University said, while
"look and buy" technology is still experimental, it has the potential to be
successful. She said, "It begins to give you a glimpse of the future."
[SOURCE: San Jose Mercury News, AUTHOR: Gregory Crawford (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/288106l.htm)

DIRECT WEB TO GIVE FREE PCs TO WIN SERVICE
Issue: Internet
DirectWeb, a NJ company, plans to offer customers "free PC's," to those who pay
$19.95 to $49.95 per month for unlimited Internet service. President and CEO
of Direct Web, Dennis Cline, says the plan will initially be launched in
Philadelphia and will possibly branch out to other parts of the US. DirectWeb's
"free PC" plan is part of a trend. Other companies, like Free-PC.com of
Pasadena, CA and Microworkz, of Seattle, have offered similar deals that
require customers to read advertisements or give personal information in
exchange for a computer and Internet service. Cline says
DirectWeb will not have customers give information or view advertisements as
part of the deal.
[SOURCE: Wall Street Journal (B9), AUTHOR: David P. Hamilton]
(http://wsj.com/)

--------------------------------------------------------------

INTERNET
God Goes Online (WSJ)
AOL, EBay Team Up To Develop Auction Sites (WP)
Publishing Rights Dispute tells the Story of Internet's Reach (WSJ)
On the Web, It's Buyer Beware. But Where? (CyberTimes)
Net Changing Latin American Society, Online Media Chief Says (SJ Merc)
First Cyber-Parliament Warms up the French Senate (SJ Merc)

TELEVISION
Speech: Television in the Digital Age (FCC)
Pulling Plug on Public Access TV? (LATimes)

JOURNALISM
Serbs Expel Western Media (ChiTrib)
On the Electronic War Front, White House Goes Full Bore (WP)

FCC
McCain Wants to Revamp FCC (SJ Merc)
FCC's FY 2000 Budget Estimates

INTERNET

GOD GOES ONLINE
Issue: Religion
Just as the Internet has dramatically affected the way that many people buy
books, read the newspaper, and plan vacations, it has also had an impact
upon how some people worship. There has been a recent explosion of religious
sites online, "and it's expanding exponentially," says Charles Henderson of
MiningCo.com. The Pope has even appeared live online. Some critics, however,
feel that virtual rituals offered by Internet sites are not what religion is
about. According to Fran Maier, chancellor of the Catholic Archdiocese of
Denver, spiritual practices requires a physical presence. "You can't remove
the body from the act of worship," he says. Others say that Internet helps
keep them more connected with their faith. "If you're a little lazy, it makes
it easy for you to do a daily devotion," says Rick Steel, of Atlanta, about
his subscription to a daily email meditation service.
[SOURCE: Wall Street Journal (B6), AUTHOR: Patrick Reilly]
(http://wsj.com)

AOL, EBAY TEAM UP TO DEVELOP AUCTION SITES
Issue: Electronic Commerce
America Online gets revenue from new auction sites plus $75 million over the
next four years in a joint marketing and development deal with eBay
announced yesterday. As its part of the deal eBay will work with AOL to
develop auction sites for AOL's main service and each of its other online
brands, including CompuServe, the NetCenter Web site and the ICQ instant
messaging service. More importantly for eBay they get access to the 16
million subscribers that AOL has and the new sites will feed into their main
auction site. EBay is the top person-to-person online auction site with 2.1
million registered users. Each side has agreed to promote the other as part
of the arrangement. The deal does not include an equity investment in eBay
by AOL, although that possibility had been rumored.
[SOURCE: Washington Post (E1), AUTHOR: Shannon Henry]
(http://www.washingtonpost.com/wp-srv/business/feed/biztop922451965719.htm)
See also:
EBAY, AOL MAKE DEAL
[SOURCE: San Jose Mercury News, AUTHOR: Stephen Buel]
(http://www.mercurycenter.com/svtech/news/indepth/docs/aol032699.htm)
EBAY DEAL WITH AOL UNDERSCORES IMPORTANCE OF PLACEMENT
Issue: E-Commerce
Location. Location. Location. Like pitching and real estate, they appear to
be the top priorities for e-commerce advertising as well. On 4/24, eBay
(http://www.netscape.com), the online auction site, announced a $75 million
deal to secure prominent placement on multiple America Online services --
AOL.com, CompuServe, the chat service ICQ and the company's newest
acquisition, Netscape Communications Corp.'s NetCenter Web portal. And, of
course, eBay will be the official auction site on AOL for the next four
years. "This will bring us an enormous number of new users," said Steven
Westly, vice president for marketing and business development at eBay.
"It'll bring the next generation of users to eBay." Although other auction
sites do and will continue to be advertised via AOL, links to eBay will be
intergrated into AOL content. The deal "continues to confirm that AOL's real
estate is prime," said Marc Johnson, a senior analyst at Jupiter
Communications, a New York Internet research firm. Johnson noted the size of
the deal is "very substantial, even in Internet dollars." AOL boasts 16
million subscribers.
[SOURCE: CyberTimes, AUTHOR: Matt Richtel (mrichtel( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/03/cyber/articles/26ebay.html)

PUBLISHING RIGHTS DISPUTE TELLS THE STORY OF INTERNET'S REACH
Issue: Copyright
A best selling British book has sparked a controversy about traditional
marketing rights across national boarders. American book publisher
Scholastic owns the US rights to "Harry Potter and the Chamber of Secrets",
published this summer in Britain by Bloomsday books. While the American
release of the book isn't scheduled until this fall, US customers have
already begun purchasing the book from Amazon.com.uk. Scholastic is
concerned that American retailers, as well as customers, might not wait
for the US release to stock copies of the blockbuster book. Bloomsbury has
assured Scholastic that it will not sell the book to US based customers, but
Amazon has made no such assurance to the American publisher.
[SOURCE: Wall Street Journal (B6), AUTHOR: Patrick Reilly]
(http://wsj.com)

ON THE WEB, IT'S BUYER BEWARE. BUT WHERE?
Issue: E-Commerce/Legal Issues/International
An illustrative look at the potential legal problems of global, e-commerce.
When a buyer is in one country and the seller is in another, which nation's
laws prevail? The story also illustrates how two lawyers can quickly get out
of hand, so we'll spare you the details. See the URL below.
[SOURCE: CyberTimes, AUTHOR: Carl S. Kaplan (kaplanc( at )nytimes.com)]
(http://www.nytimes.com/yr/mo/day/tech/indexcyber.html)

NET CHANGING LATIN AMERICAN SOCIETY, ONLINE MEDIA CHIEF SAYS
Issue: Internet/International
"There's no going back," Fernando J. Espuelas told the Business Week
magazine's annual conference on Latin America yesterday. Espuelas, CEO of
StarMedia Network, Latin America's leading online media company, told the
Bal Harbour, FL audience that the Internet is bringing new options to
consumers long obliged to choose among limited, outdated brands at high
prices. He believes that it is also offering more varied information to
citizens, reducing the control of traditional power brokers and
democratizing politics. Internet users in Latin America now total 15 million
with one-third in Brazil alone. Espuelas suggested the totals will go to 35
million in two years and 100 million in five years.
[SOURCE: San Jose Mercury News, AUTHOR:]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/082464.htm)
For an example of Latin American business expansion, see also:
TELEFONICA PACT EXPANDS IBM REACH IN LATIN WORLD
[SOURCE: San Jose Mercury News, AUTHOR: Eric Auchard (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/278065l.htm)

FIRST CYBER-PARLIAMENT WARMS UP THE FRENCH SENATE
Issue: Internet/International
It was the major event of the second annual "Fete de l'Internet." It
featured 200 teenagers, cyber-activists, industrialists and journalists at
the French Senate House. And like any cyber-event these days, it was
available online for an unknown number of visitors using RealVideo. "Our
goal is to make the Internet festival the nationwide yearly happening for
France to progress towards the information age," said Bruno Oudet, an
economics professor who came up with the idea. The event featured the
drafting, revising, and passing laws to govern the Internet. With the
assembly divided into five fictional political parties, the majority voted
to restrict the liability to publishers of editorial content in Article 1 of
the bill. Article 2 assured the network will be used as a public service
providing equal access to all users. Article 3 that supported the French
socialist's government call for a 35-hour workweek was defeated. The group
passed an article forbidding anyone to appropriate the standards of the
Internet, whether navigators, operating systems or by proprietary software.
[SOURCE: San Jose Mercury News, AUTHOR: Francoise Derollepot]
(http://www.mercurycenter.com/svtech/news/indepth/docs/cerf032699.htm)

TELEVISION

SPEECH: TELEVISION IN THE DIGITAL AGE
Issue: Digital TV
Chairman Kennard's Remarks before the Variety/Schroders Media Conference in
New York (NY) [Summary]: Forty years ago in the famous "wasteland" speech,
the FCC Chairman Newt Minow called the time the Television Age -- and now
FCC Chairman Kennard agrees. He calls this the Digital Age noting that just
about every home appliance is now digital -- except the television. But this
is changing with the arrival of digital TV. But the old winning formula of
TV -- bringing visual entertainment to a passive audience -- must now change
to. Recent focus groups suggest that the killer app for digital TV will be
interactive data. "With digital, [television] will become an interactive
experience. It will be an avenue of endless exploration. Programming will
not just be
judged by its length, but by its depth -- by how many layers of additional
information and entertainment lie beneath it....Think about it. Everyone has
a television. So when that medium becomes digital and TV can be an on-ramp
to the Information Superhighway, it will serve as a foot-bridge -- for
millions of Americans -- across the digital divide." Two problem must still
be solved: 1) programmers must create compelling content to create a desire
for digital TV and 2) compatibility and interoperability. To #1 Chairman
Kennard says, "We need the courage to embrace the future. We need to
experiment with our business plans. And we need to seize the opportunity of
digital TV. And we at the FCC will give you the flexibility to do that." To
the second problem, Kennard challenges industry players to come to the
bargaining table in good faith. "My job as chairman of the FCC is to make
sure that consumers benefit from the digital age. I want all Americans --
and I mean all Americans -- to be able to use these amazing new technologies
to better educate their children, to be able to communicate with people
around the world, and to be able to learn the skills needed to survive and
thrive in the New Economy." The FCC would rather facilitate than regulate to
solve the questions facing digital TV. The Chairman quotes Edward R.
Murrow to summarize the challenge: "This instrument can teach, it can
illuminate, and yes it can inspire. But it can do so only to the extent that
humans are determined to use it to those ends. Otherwise it is nothing but
wires and lights in a box."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/spwek913.html)

PULLING PLUG ON PUBLIC ACCESS TV?
Issue: Cable
Los Angeles is preparing to renegotiate the city's franchise agreements with
cable operators for the first time since 1984 and are considering dropping
requirements for public access programming. PCs, the Internet and other new
technologies offer free speech opportunities that were not available in '84
and a city-wide public access channel's public access programming has been
dropped after receiving criticism for being too risque. "We went all
educational--we had to save the channel. And that's the truth," said Dyke
Redmond, director of the Los Angeles Cable Television Access Corp. "The
environment is shifting," said Perry Parks, a vice president of cable
company Media One. "Public access has become a challenge." Parks thinks the
Internet will replace cable public access. Federal law doesn't require that
cable companies offer public access channels, Ed Perez, an assistant city
attorney who works with the Information Technology Agency, said Wednesday.
"It's never been mandatory. It's something that can be negotiated."
[SOURCE: Los Angeles Times (3/25), AUTHOR: Bob Pool]
(http://www.latimes.com/HOME/NEWS/METRO/t000026763.html)
[Thanks to reader Jamie Kravitz for sending this story our way]

JOURNALISM

SERBS EXPEL WESTERN MEDIA
Issue: Censorship
"These journalists had spurred aggressive action by NATO forces against our
country and were misinforming the world public on the current situation in
Yugoslavia," according to a statement from the Yugoslav Information
Ministry. Yesterday, the Serbian government expelled journalists from the
US, Britain, France, Germany and other nations involved with the NATO
strikes. Some of the journalists have been interrogated, threatened and
harassed by Serbian officials. The government claims that their reporting
"strengthened the aggressive acts of NATO forces aimed at the violent
destruction of...the territorial integrity of Serbia and Yugoslavia."
[SOURCE: Chicago Tribune (Sec 1, p.8), AUTHOR: Tim Jones]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9903260115,00.html)

ON THE ELECTRONIC WAR FRONT, WHITE HOUSE GOES FULL BORE
Issue: Journalism/Politics
The White House used the media to get its message across to defend its
airstrikes in Yugoslavia. Defense Secretary William S. Cohen was the point
man appearing on five major morning TV programs, two major radio networks
and evening appearances on PBS's "Newshour," CNN's "Larry King Live," and
ABC's "Nightline." Other administration officials, including Secretary of
State Madeline Albright and national security advisor Sandy Berger briefed
reporters and carefully adhered to the rationales and goals that Clinton
laid out for the military operation. Robert Lichter of the Center for Media
and Public Affairs said that "the Administration has gotten more positive
coverage on the evening news shows on the bombing in Yugoslavia than they
have on any previous American military action," including missions in Iraq,
Bosnia, and Haiti. After appearing in a televised address on Wednesday
night, President Clinton was out of the reach of journalists on Thursday
except for a White House photo opportunity where he took a few questions
regarding Kosovo.
[SOURCE: Washington Post (A24), AUTHOR: Charles Babington]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-03/26/051l-032699-idx.html)

FCC

MCCAIN WANTS TO REVAMP FCC
Issue: FCC
Sen. John McCain (R-AZ) said Thursday he will offer legislation to "refocus"
the Federal Communications Commission. The senator, who is chairman of the
Senate Commerce Committee that has oversight of the FCC, did not offer
details, but he did say that he would hold a hearing on April 14 and offer
his solutions at that time. Sen. McCain and some other lawmakers have
accused the FCC of being too regulatory. He and Rep. Billy Tauzin (R-LA),
who chairs the House Commerce Committee's telecommunications panel, want to
limit the FCC's ability to review mergers involving telecommunications
companies. Yesterday he criticized the FCC for not removing regulations so
the nation's Bell companies can offer high speed Internet and data services
across local calling boundaries, which technically constitutes a
long-distance service.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/027037.htm)

FCC'S FY 2000 BUDGET ESTIMATES
Issue: Budget Issues
Chairman Kennard's Statement before the United States Senate Subcommittee on
Commerce, Justice, State, and the Judiciary, Committee on Appropriations, on
the Federal Communications Commission's Fiscal Year 2000 Budget Estimates.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/stwek917.html)

--------------------------------------------------------------
...and we're outta here. It's Friday; enjoy!

Rest well, Mr. Ripken,

ONLINE ADVOCACY
Flood of E-Mail Credited With Halting U.S.
Bank Plan (CyberTimes)

FCC
Kennard Catches Hill (B&C)

TELEVISION
MSNBC To Stream Local Newscasts (B&C)
Icy After the Sunset (B&C)
Ready to Roll (WSJ)

ADVERTISING
And Now a Word... (WSJ)

TELEPHONY
Ameritech Deal Clears Big Hurdle (ChiTib)
FCC sets dates to open local toll call market (SJ Merc)
Cisco Systems' Assault On the Telephone (NYT)
Speech: And the Winner Is... (NTIA)

INTERNET
US Online Users Surf Internet Six Hours A Week-Poll (SJ Merc)
Can New Technologies Revitalize Old Teaching Methods?
Microsoft Offers Computers for Mortgages (WP)

JOURNALISM
News Media, Police Join Forces Before Supreme Court (ChiTrib)

LIFESTYLES!
This Chicago Classic Makes Itself at Home (ChiTrib)

ONLINE ADVOCACY

FLOOD OF E-MAIL CREDITED WITH HALTING U.S. BANK PLAN
Issue: Online Advocacy
The Federal Deposit Insurance Corporation's (FDIC) proposed "Know Your
Customer" policy (which would require banks to monitor customers' banking
patterns and report inconsistencies to Federal regulators in the name of
detecting potential money-launders) met heavy resistance from online
commenteres and has been withdrawn. The FDIC received 257,000 comments on
the proposal -- about 205,000 (~80%) arrived by e-mail. "It was the nature
and the volume [of the comments]," said Chairman Donna Tanoue. "When
consumers can get excited about an esoteric bank regulation, we have to pay
attention." She added, "Certainly it's been an enlightening chapter for the
FDIC." "That the FDIC allowed their decision to be weighted so heavily by
e-mail is significant," said Jillaine Smith, a senior associate at the
Benton Foundation who tracks public-interest uses of the Internet. "It's
been the sense among advocacy experts that Congress is not ready to be
driven by e-mail efforts." Word of the FDIC's email address and website on
the subject spread through traditional media, talk radio, and an online
advocacy campaign sponsored by the Libertarian Party -- about 83% of the
email sent to the FDIC was done so through the party's advocacy website.
"E-mail can have the impact of a sledgehammer on public policy," said a
party spokesperson. "Obviously, e-mail works to influence public policy if
you do it right. It has to go to an agency that's set up to receive e-mail,
which the FDIC was. It has to be an issue that people care about." See the
Libertarian Party Advocacy site (http://www.defendyourprivacy.com) and
Benton's Advocacy Online site (http://www.benton.org/Practice/Best/advoc.html).
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney (rfr( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/03/cyber/articles/24email.html)

FCC

KENNARD CATCHES HILL
Issue: FCC
Federal Communications Commission Chairman William Kennard's relations with
congressional leaders have steadily deteriorated. Chairman Kennard's
initiatives appear to be out of sync with the deregulatory-minded Congress.
At a hearing last week House Telecommunications Chairman Billy Tauzin (R-LA)
and other lawmakers pledged to strip the FCC of its broad authority to
pursue social policy goals. Rep. Tauzin complains that Chairman Kennard is
"dragging his feet, and in some cases blatantly opposing, the deregulatory
edict of the 1996 Telecommunications Act by pursuing tighter broadcast
ownership restrictions and adding a new 'e-fee' to telephone bills to pay
for wiring schools to the Internet. At the same time, lawmakers say Kennard
has not made enough progress in bringing competition to monopoly-dominated
sectors, such as local cable TV and residential phone service." Although
some lawmakers, including Senate Majority Leader Trent Lott (R-MS), have had
words of support for him and have supported low-power radio and "e-rate"
fees which Chairman Kennard has pushed, some other key lawmakers have been
vocally unhappy. The first round of complaints came after he announced the
FCC would launch a rulemaking into free airtime for politicians.
Congressional leaders claimed that was their province, not the FCC's. The
second round came last fall when reports circulated that the FCC chairman
wanted to tighten broadcast ownership rules. These tempests and rapidly
changing technology have brought on the new wave of interest in FCC reform.
Rep. Tauzin's effort got a big endorsement from House Speaker Dennis Hastert
(R-IL) and undoubtedly will lead to additional hearings on restructuring.
[SOURCE: Broadcasting&Cable (p.8), AUTHOR: Bill McConnell & Paige Albiniak]
(http://www.broadcastingcable.com/)

TELEVISION

MSNBC TO STREAM LOCAL NEWSCASTS
Issue: Cable
As many as 15 NBC affiliates will have streaming live evening newscasts
available next month at the MSNBC site. The initiative is intended to beef
up MSNBC's local news programming links, since that aspect of its online
coverage is one of its biggest draws, according to General Manager John
Nicol. Although most of the original affiliates will be NBC owned and
operated stations, MSNBC.com expects to expand the service to other NBC
affiliates. The service is likely to be placed in the expanded video portal
area of MSNBC. http:// http://www.msnbc.com/news/default.asp
[SOURCE: Broadcasting&Cable (p.45), AUTHOR: Richard Tedesco]
(http://www.broadcastingcable.com/)

ICY AFTER THE SUNSET
Issue: Cable
The end of March will bring an end to federal cable rate regulation (except
for cable's most basic service) imposed by the 1992 Cable Act. Observers
expect competition and continued oversight by Congress will help
avoid large rate increases, at least in the near term. For now, cable
operators say to increase income they will depend on new revenue streams by
launching new products, including high-speed Internet and telephone service.
Cable rates have been creeping up. Critics arguing to keep or reimpose
rate regulation point to the cumulative effect of rate increases over time
which have far exceeded the annual inflation rate. Last year the increase was
about 9% nationally. In 1999 the National Cable Television Association
expects rates to rise about 5%. Competition to cable's traditional services
is growing. Satellite (DBS) service has grown to 10 million subscribers.
Ameritech is pursuing the subscription video market. GTE and BellSouth are
hoping terrestrial wireless technology can be a competitor.
[SOURCE: Broadcasting&Cable (p.38), AUTHOR: Price Colman & John M. Higgins]
(http://www.broadcastingcable.com/)

READY TO ROLL
Issue: Cable TV
Over the past three years, the nation's cable-TV operators have invested
more than $20 billion to upgrade their coaxial cable-TV lines to digital,
installing miles of fiber-optic cables and fancy new electronics capable of
handling a plethora of new digital fare. The National Cable Television
Association estimates that about 86% of America's cable systems will be
digital-capable by the end of the year. Comcast is offering digital cable as
a separate programming package for about $10/month and is getting what
company officials consider a very strong response. For the extra $10, most
customers get 150 channels or more that include dozens of movie and
pay-per-view choices, an array of music channels and digitized versions of
their favorite networks. The digital cable requires new set top boxes in the
home, but they typically cost about $3/month to lease, roughly the same as
their analog cousins. The new boxes and digital compression technology give
consumers more choice. The average cable-TV company today offers 63
channels; most digital systems offer close to 200. On-screen TV guides help
customers navigate their choices, let viewers make payments for pay-per-view
events, set "pop-up" electronic reminders of coming programs, let parents
lock out channels they don't want their children to watch, and allow cable
companies to send message to consumers about upcoming programs. Later this
year Diva Systems Corp. plans to expand its capability for true
video-on-demand. Ask for a movie and it starts. While cable companies appear
generally supportive of HDTV, few are willing to say when they expect to
begin carrying it on dedicated channels, in part because there is a dearth
of HDTV programming available. Cable companies hope their transition to
digital and expansion of program offerings will allow them to compete with
direct-broadcast-satellite (DBS) companies. DBS
companies counter that buying satellite TV these days is just as easy as
buying regular cable and their current "local TV" problem should be solved
in the near future.
[SOURCE: Wall Street Journal (R10 on 3/22), AUTHOR: Leslie Cauley]
(http://wsj.com/)

ADVERTISING

AND NOW A WORD...
Issue: Advertising
A trial by At Home is offering direct commercial response or additional
information to advertisements to about 330,000 households across the US and
Canada. At Home offers quick, cable-modem links to the Internet allowing
viewers to get information on products they have just seen on television. At
Home charges advertisers as much as $150 per 1,000 viewers, a rate nearly 10
times beyond the usual fees for television or Internet advertising. And
major companies are responding. James Nail, an advertising analyst at
Forrester Research, says don't expect too much too fast. Lots of "ifs"
remain. High-speed broadband access still must be installed for the masses,
the public must be convinced to use the service, and advertisers must be
convinced people will look at their messages.
[SOURCE: Wall Street Journal (R8 on 3/22), AUTHOR: George Anders]
(http://wsj.com/)

TELEPHONY

AMERITECH DEAL CLEARS BIG HURDLE
Issue: Mergers
The US Department of Justice approved the takeover of Ameritech by SBC
Communications. One of four regulatory bodies that must approve the merger
(along with the FCC and state commissions in Ohio and Illinois), the DoJ
ruled that the merger is not anticompetitive. [Of course, it all depends on
how you define 'competitive.'] The focus turns to the ICC now. "This
heightens the responsibility of the ICC because the state law gives it very
broad authority to act in the interests of Illinois consumers," said Terry
Barnich, a former ICC chairman. "I think ultimately the deal will go
through, because the Illinois commissioners don't want to stand in the way
of the merger happening, but they do want to impose conditions that will
protect rate payers and encourage competition." The merger is valued at $60
billion. Consumer advocates oppose the merger, but were not entirely
surprised by the DoJ's announcement: "Justice takes a national view and
doesn't look at any individual state the way the Illinois Commerce
Commission is required
to," said Martin Cohen, executive director of the Illinois Citizens Utility
Board. "This action by Justice wasn't unexpected, but the ICC is still bound
by Illinois law, which sets a high standard for SBC to meet."
[SOURCE: Chicago Tribune (Sec 1, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,ART-25572,00.html)

FCC SETS DATES TO OPEN LOCAL TOLL CALL MARKET
Issue: Telephony
A Federal Communications Commission order Tuesday sets dates for dominant
local phone companies to open the local toll calling area to competition.
(Local toll calls are those made to a number outside a customer's unlimited
local calling area and at least 12 miles away but not far enough to qualify
as long-distance calls.) Currently local toll calls are carried
automatically by the local phone company unless the customer uses a
seven-digit access code, such as the popular "10-10" numbers. Under the
FCC's order, phone companies will have to let customers choose their local
call carrier as easily as they do their long distance company. According to
the order, carriers whose plans have been approved by a state commission
must allow consumers to choose who carries their toll calls without dialing
extra digits by May 7. Those who have not filed plans must do so by April
22; states have until June 22 to review and approve plans and carriers must
implement them within 30 days.
[SOURCE: San Jose Mercury News, AUTHOR: Deborah Kong]
(http://www.mercurycenter.com/svtech/news/indepth/docs/toll032499.htm)

CISCO SYSTEMS' ASSAULT ON THE TELEPHONE
Issue: Internet Telephony
Cisco systems, like many communications companies, is gearing up to provide
telephone calls over the Internet. They dream of one day making traditional
phone systems extinct. One of the largest obstacles that Cisco and others
face in deploying Internet telephony is the struggle to set standards for
voice calls over Internet protocol (IP). In fact, almost none of the
different existing systems work with one another. Other challenges to
greater acceptance for IP is its unreliability and low sound quality. While
Internet telephony is not yet ready for the mainstream, many predict that it
will soon be embraced by companies who want to save money by transmitting
calls on their preexisting networks. "For consumers, it's probably going to
mean cheaper costs. The consumer is going to be using voice-over-I.P.
without even knowing it," said Howard Anderson, managing director of a
high-technology consulting firm.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/03/biztech/articles/24place.html)

SPEECH: AND THE WINNER IS...
Issue: Competition
Remarks by Larry Irving at the First Annual Competitive Local Access
Conference, March 22, 1999: This year, we've seen a tremendous growth of new
players, new technologies, and new services and products on the market. The
choices for consumers are vast, and keep growing. What if you want to
contact your child at college, at the airport, or on the playground? Today
you have a range of options. You can use e-mail, a cell phone, or a
traditional telephone. But the options don't end there. If you're e-mailing,
you can do it over a PC, a Web TV, a Net phone, or a wireless laptop. If
you're using wireless, you can use a digital or analog cellular or PCS
device. Or you can use a dual mode device and switch back and forth between
digital and analog. And even the plain old telephone is no longer just a
plain old telephone. Your calls may be carried over traditional copper wire
or cable, or fiber, or even over the Internet if you're using Internet
telephony. And, this doesn't even begin to cover the range of options that
are available. These types of developments are changing the lives of
hundreds of thousands of consumers and businesses. They deserve as much
recognition as any blockbuster movie, and for that reason I'd like to begin
the awards ceremony. Awards include: 1) Best Screenplay - The
Telecommunications Act, 2) Best Director - The Recent Supreme Court
Decisions, 3) Best Actor - The Emerging Competitors, and 4) Best Picture - A
Connected Society
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/speeches/icm32299.htm)

INTERNET

US ONLINE USERS SURF INTERNET SIX HOURS A WEEK-POLL
Issue: Internet
Are you an average online computer user? If so, Louis Harris and Associates
say you surf the Internet six hours per week. The poll released Tuesday
surveyed over 2,000 adult during February. The Internet total did not
include time spent sending and receiving e-mail, but the survey concluded
that e-mail use continues to climb. Sixty-three percent of online users
send or receive e-mail "often," a 10% jump since September 1998. Other
popular activities: conducting research for work or school (39%) and online
shopping (31%). Sixty-two percent of those surveyed used a computer an
average of 15 hour per week.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/002315.htm)

CAN NEW TECHNOLOGIES REVITALIZE OLD TEACHING METHODS?
Issue: EdTech
In a new Educause (http://www.educause.edu/) publication, Dancing With the
Devil, Lehigh University President and technology enthusiast Gregory
Farrington (http://www.Lehigh.EDU/news/president/biography.html) argues
there is little chance that technology will mean the closing of campuses any
time soon. Most distance learning schools, he notes, are targeted at working
adults, not 18-22 year-olds. For the younger crowd, Mr. Farrington thinks
the Internet and technology can mean a revitalization of education -- if
faculty and administrators use it correctly and do not see it as a threat.
"We've become a bit monopolistic, a bit complacent," Farrington said
recently. "We've put too little of our energy into focusing on the challenge
of how we create the most effective learning environment at the
undergraduate level. We know how we want to teach. We too seldom discuss how
do students best learn." Farrington believes the Internet could prove a
valuable way not just to deliver information but to explain concepts as
well. But there is no replacing face-to-face interactions, Farrington argues
-- true understanding requires conversation.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels (mendels( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/03/cyber/education/24education.html)

MICROSOFT OFFERS COMPUTERS FOR MORTGAGES
Issue: E-Commerce
Remember banks and free toasters? The same concept is coming to cyberspace.
Microsoft said yesterday it would offer free Consentric Systems personal
computers to at least the first 1,000 borrowers who close a home loan for
more than $125,000 on its online HomeAdvisor real estate site. The computer
has limited power and memory and carries a value of $900. Smaller loans can
get 300 borrowers a Casio PV-200 computer that retails for $132. Microsoft
hopes the giveaway will jump-start its entry into the online loan and
mortgage market. Bob Garfield, a columnist for Advertising Age magazine,
said, "People historically have made some very bad financial decisions on
the basis of a toaster-oven."
[SOURCE: Washington Post (E3), AUTHOR: Mark Leibovich]
(http://www.washingtonpost.com/wp-srv/business/daily/march99/mortgages24.htm)

JOURNALISM

NEWS MEDIA, POLICE JOIN FORCES BEFORE SUPREME COURT
Issue: Journalism
Two cases involving journalists accompanying law enforcement officials
serving warrant have reached the Supreme Court. At stake here is a balance
between a person's right to be free from unreasonable intrusions vs the
media's interest in reporting issues of public concern. Civil rights groups
like the ACLU say the police overstepped their bounds by bringing
journalists into homes while serving warrants. On the other side are law
enforcement officials and media companies -- including the Tribune Company
-- which emphasize the public interest in having journalists accompany
police. [How else, you might wonder, would we have shows like Cops?] This
side argues that the practice opens an important government function open to
public scrutiny.
[SOURCE: Chicago Tribune (Sec 1, p.4), AUTHOR: Jan Crawford Greenburg]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9903240103,00.html)

LIFESTYLES!

THIS CHICAGO CLASSIC MAKES ITSELF AT HOME
Issue: Lifestyles!
The biggest major sport with the least media coverage -- I'm talking 16"
softball, of course -- will become a boys varsity support this fall in
Chicago public schools. Chicago is the birthplace of this most democratic
sport played without gloves by 10 players aside swatting at high-arching
pitches. The sports patron saint, columnist Mike Royko, smiles down on the
city once again. 48 high schools will field teams later this year. The game
requires less equipment and also less space than baseball -- bases are 60'
apart instead of 90' and the bigger ball does not travel as far.
[SOURCE: Chicago Tribune (Sec 1, p.1), AUTHOR: Bob Sakamoto]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9903240095,00.html)

--------------------------------------------------------------

RADIO
Battle of the Airwaves (WSJ)

MERGER
Comcast, MediaOne to Merge (WP)

ED TECH
ZapMe! School Role Debated (SJ Merc)

INTERNET
How The Net Can Cut Utility Bills (SJ Merc)
Sending a Global Fax on the Cheap (WP)

E-COMMERCE
Affiliate Referrals Generate Big Profits (CyberTimes)
How Eservice Could Put You Out of Business (ZDNet AnchorDesk)
Survey Suggests Consumers Are Taking to E-Commerce (NYT)
Novell to Offer Data-Privacy Technology for Internet (NYT)

RADIO

BATTLE OF THE AIRWAVES
Issue: Microradio
What do a Hispanic pastor, an alternative musician, a New Jersey policeman,
and some blind cooks have in common? They all are eager to explore the
possibilities of microradio. The FCC is considering a proposal to license a
new class of small, low-power radio stations. While the cost of operating a
full scale radio station is prohibitively expensive for most individuals,
less than $1,000 is needed to get a mircoradio station up and running.
Diverse communities nationwide have exhibited interest in obtaining
low-power licenses, but existing broadcasters have pledged to put a fight to
prevent new stations from infringing on their turf. With help from powerful
allies in Congress, the National Association of Broadcasters has managed to
temporally block further FCC action to opening up the radio spectrum to
community and neighborhood voices.
[SOURCE: Wall Street Journal (B1), AUTHOR: Kathy Chen]
http://wsj.com/

MERGER

COMCAST, MEDIAONE TO MERGE
Issue: Cable
Two of the four largest cable companies in the US, Comcast Corp. and
MediaOne Group, announced today agreement by their boards on a buyout
agreement which would combine the two companies through a $48 billion stock
swap. The combined company would serve 11 million cable customers in a
potential market of 18 million homes. In addition to its cable holdings,
Comcast also has business in telephone services, cellular telephones,
personal communications services, direct to home satellite television and
cable channels including QVC and E! Entertainment Television. MediaOne Group
is one of the world's largest broadband communications companies. The
agreement must be approved by the shareholders of both companies and by
federal and local regulatory agencies.
[SOURCE: Washington Post (Online), AUTHOR: Reshma Kapadia (Reuters)]
http://www.washingtonpost.com/wp-srv/business/daily/march99/comcast22.htm

ED TECH

ZAPME! SCHOOL ROLE DEBATED
Issue: Ed Tech
A California firm offers your technology-starved school free Pentium II
computers and Internet service but wants to reserve a box in the lower left
portion of the screen for advertising. What do you do? A lot of schools are
saying "yes" to ZapMe! Corporation's sales pitch. To date nearly a hundred
schools have signed three-year contracts. Andrew Hagelshaw of Oakland's
Center for Commercial-Free Public Education said, "It's just another scheme
to get advertisers into the classroom." ZapMe! President Frank J. Vigil
said, "We are a for-profit company, but it's important to recognize our
vision, and that's that all students have access to modern learning tools in
the digital age." Schools say they can live with the advertising, since it
is already pervasive in youth culture, especially on the Internet. ZapMe!
offers schools the option of full Internet access or 10,000 education sites
chosen by the company. Each school receives 15 computers for three years,
plus a laser printer, roof-mounted satellite dish for the Internet
connection, and installation, training, and support.
[SOURCE: San Jose Mercury News, AUTHOR: Michael Bazeley]
http://www.mercurycenter.com/svtech/news/indepth/docs/zapme032299.htm

INTERNET

HOW THE NET CAN CUT UTILITY BILLS
Issue: Internet
Home automation has long been possible, but has yet to take off. An upstart
company named utility.com hopes today will be that day. Launching service in
California today, the company claims it can save consumers up to 15% by
cutting the cost of supplying power in two ways: by using the Internet
instead of mail to communicate with customers, and by shifting demand for
power to less expensive off-peak hours. Utility.com would use a third party
to monitor customers' electricity usage automatically and, in some cases,
control their thermostats. At least two other national wireless data service
providers say they, too, plan to team with utilities on automated
energy-monitoring. Power companies do this kind of energy management with
large companies and heavy industries, but have not ventured much past the
trial stage in homes because automation equipment has been expensive.
Customers who sign up for utility.com's Power Ace program would have a
wireless CellNet transmitter attached to their electric meter, sending power
consumption date to utility.com every five minutes. The same transmitter
could be used to send information on alarm systems and other home
electronics eventually.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
http://www.mercurycenter.com/svtech/news/indepth/docs/util032299.htm

SENDING A GLOBAL FAX ON THE CHEAP
Issue: Internet
International faxing is expensive. The steep charges for country-to-country
fax transmission add up because of international tolls charged by monopoly
telephone companies in other countries. Companies like Fax2Net, .Comfax, and
IntelliFax.com bypass the monopolies by using the Internet as the long-haul
carrier. Fax2Net's customers dial international numbers as usual. But
special gadgets attached to their fax machines or fax modems switch these
calls into nearby computers instead of telephone switches. The computer then
transmits the fax as computerized "packets" via the Internet to another
server at the receiver's end. The receiving system then sends the packets
through that local phone system and into the receiver's fax machine. Thomas
Chen of Fax2Net expects fax delivery to continue to be important
internationally because e-mail is less used in other parts of the world and
paper documents are easier to fax than to scan and send as e-mail attachments.
[SOURCE: Washington Post (F5), AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-srv/business/feed/biztop922105071988.htm

E-COMMERCE

AFFILIATE REFERRALS GENERATE BIG PROFITS
Issue: E-Commerce
The next Big Thing in e-commerce may be affiliates -- agreements between Web
sites that pay one site for referring new customers to another site.
Amazon.com is credited with pioneering the affiliate model -- a program it
started in 1996. The Internet bookseller now has 230,000 affiliates. Why the
excitement? E-retailers usually don't pay anything to affiliates unless a
purchase is actually made. "With affiliates, you pay for performance," said
an e-retail executive. "You don't pay upfront and then work to get
performance." Many online retailers spend from $20-$40 for each new customer
due to the high price of advertising at popular portals like Yahoo! or Lycos
-- an exorbitant amount compared with off-line retailers. James McQuivey, an
electronic commerce analyst with Forrester Research, said that merchants are
paying "from 8, to 10, to 12, now as high as 20 percent" to affiliates.
According to the research firm Jupiter Communications, 15% of affiliates
account for 85% of sales.
[SOURCE: CyberTimes, AUTHOR: Bob Tedeschi (tedeschi( at )nytimes.com)]
http://www.nytimes.com/library/tech/99/03/cyber/commerce/22commerce.html

HOW ESERVICE COULD PUT YOU OUT OF BUSINESS
Issue: E-Commerce
E-commerce has changed retailing and companies without the foresight to see
it coming -- Merrill, Lynch, Sears and Borders -- risked losing it all.
E-commerce focuses on the actual sale. E-Service is being there for the
customer before and after a sale. Berst writes, Think about that for a
moment. Would you rather be in touch with customers only when they are ready
to buy? Or before they've decided, when you have the chance to influence
what and when they make a purchase? And after they've purchased, when you
can influence add-on sales and upgrades? Today, many companies are not
taking full advantage of Frequently Asked Questions (FAQs), discussion rooms
and chats (so customers can work together to solve problems), or email (so
customers can get help without calling). Brightware, a e-service vendor,
tried to email a simple question to the 100 largest companies -- What's the
address of your headquarters. Only 15% answered within 3 hours, 10% never
answered, and 36% could not be emailed from their Web site. As we move to
digital commerce, barriers of geography and time are being broken down --
e-service, Berst warns, will make all the difference for competing e-retailers.
[SOURCE: ZDNet AnchorDesk, AUTHOR: Jesse Berst]
http://www.zdnet.com/anchordesk/story/story_3206.html

SURVEY SUGGESTS CONSUMERS ARE TAKING TO E-COMMERCE
Issue: E-Commerce
Half of American households connected to the Internet are making purchases
online, according to a recent study. Odyssey, a San Francisco based market
research firm, found that e-commerce is growing at a rate even faster than
the increase in home with PC and Internet access. The study also reports that
more people are returning to the Net to make purchases. Of households who
buy online, 3.7 is the average number of purchases in the last six months,
compared with only 1.7 a year before.
[SOURCE: New York Times (Online), AUTHOR: Steve Lohr]
http://www.nytimes.com/library/tech/99/03/biztech/articles/22data.html

NOVELL TO OFFER DATA-PRIVACY TECHNOLOGY FOR INTERNET
Issue: Privacy
The Novell Corporation will announce today a new technology that can give
individuals greater anonymity as they surf through cyberspace. The Digital
Me software will allow people to control how much personal data they reveal
online. As companies have become increasingly sophisticated in identifying
and tracking visitors' actions on the Web, there is great consumer demand
for technology that protects the privacy of Internet users. The Novell
software might also make it possible for consumers to sell or barter
personal data to online merchants.
[SOURCE: New York Times (C1), AUTHOR: John Markoff]
http://www.nytimes.com/library/tech/99/03/biztech/articles/22place.html

--------------------------------------------------------------