April 1999

MERGERS
Intrigue Grows With MediaOne's Cost (ChiTrib)
AOL May Aid Comcast Against AT&T (WP)
ICC Examiners Alter Phone Merger Stance (ChiTrib)
Telecom Italia Rejects Bid By Olivetti (NYT)

E-COMMERCE
Ex-Netscape Chief Resigns From Cyberpanel (WP)
Newspapers Advised to Try E-Commerce (WP)
Toys 'R Us To Increase Internet Presence (NYT)

INTERNET
The Internet vs. the First Amendment (NYT)
High-Speed Access Begins To Alter the Role the Internet
Plays In The Home (NYT)
Microsoft Teams Up for New Internet (WP)
Changes in Search Industry Create Strange Bedfellows (CyberTimes)
Advanced Placement Courses Offered Online (CyberTimes)

SATELLITE
Legislation Passed to Transform Satellite TV (NYT)
House Passage of Satellite Copyright, Competition, &
Consumer Protection Act (House)

ADVERTISING
New York Times to Refuse Tobacco Ads (WSJ)

JOURNALISM
Study: Teens Relying on Local Papers (WP)

SECURITY
Chernobyl Strikes Computers Worldwide (WP)

PHILANTHROPY
New Leader to Take Over Joyce Foundation Control (ChiTrib)

MERGERS

INTRIGUE GROWS WITH MEDIAONE'S COST
Issue: Mergers/Cable
With AT&T's offer for MediaOne, Comcast must now decide whether to 1) take
the $1.5 billion buyout if its deal for MediaOne falls through, 2) up its
bid to exceed AT&T's $58 billion cash-and-stock offer, or 3) find a partner
-- like America Online or Microsoft -- to sweeten the deal. "I don't
necessarily see this thing going up and up and up," said Bruce Leichtman, a
communications industry analyst at the Yankee Group in Boston. "The envelope
has been pushed by both companies, and in the end the asset may be more
valuable to AT&T than anyone else." Industry watchers see a duopoly emerging
with AT&T controlling one wire into the home that delivers telephone, data
and video services and local telephone companies providing another. A
suspenseful silence has fallen over Comcast, MediaOne, and AT&T and these
players consider their next move. Add to the mix regulatory review of the
merger -- will AT&T's cable concentration be too much -- and reaction from
other telcos -- will MCIWorldCom be able to and continue to fight AT&T for
local customers? -- and you have what the authors call "the perilous thrill
of the most expensive bidding war in corporate takeover history."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones & Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,ART-27772,00.html)

AOL MAY AID COMCAST AGAINST AT&T
Issue: Merger/Broadband
America Online likely will support Comcast's attempt to outbid AT&T for
cable-company Media One Group. AOL's financial support could be key to
Comcast, whose bid of $50 billion was superseded by AT&T's offer of $58
billion. Media One is desirable because it serves 5 million cable
subscribers and its up-to-date cable systems can be outfitted to provide
customers with high-speed connections to the Internet. Media One also own
37% of Roadrunner, one of two major cable-Internet access companies. For
AOL the relationship with Comcast could give it a new way to expand its
high-speed access to the Internet. Reports also circulated yesterday that
Comcast was soliciting Microsoft's financial support to improve its bid,
although industry analysts doubted Microsoft's participation.
[SOURCE: Washington Post (E1), AUTHOR: Paul Farhi & Shannon Henry]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/att28.htm)

ICC EXAMINERS ALTER PHONE MERGER STANCE
Issue: Mergers/Telephone
"They took a bad proposed order and made it worse," said Martin Cohen,
executive director of the Citizens Utility Board. Illinois Commerce
Commission hearing examiners have changed their recommendation that all
savings from the SBC-Ameritech merger be passed on to consumers and are now
suggesting that just 1/4 of those savings be shared with consumers. Marie
Spicuzza, an assistant to Cook County State's Atty. Dick Devine, said, "I
didn't think it could get any worse, but it did. It's just amazing. Our
primary position is that this merger should be denied. If it is approved, it
should be with major conditions. But what's been recommended is no use at
all. This order lets these companies put their hands right into the
consumer's wallet to
take what they want to finance their shareholders' return." Consumer
advocates fear that the revised stance by examiners will open the door for
the combined company to raise rates when the deal is completed. Oral
arguments before the five ICC commissioners begins Thursday.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904280390,00.html)

TELECOM ITALIA REJECTS BID BY OLIVETTI
Issue:International/Mergers
Telecom Italia has formerly rejected Olivetti's $65 billion bid to take over
the company. Telecom Italia's board said it would convey its decision to
regulators and will go ahead with plans to merge with Deutsche Telekom.
Telecom Italia also announced that it is selling Stream -- its pay-per-view
TV operation -- to a group that includes Rupert Murdoch's News Corp.
Olivetti protested the sale as an interference with the planned bid. Earlier
this year, Murdoch's attempt to acquire 80% of Stream was thwarted by the
Italian government's ruling against News Corp's right to bid for Italian
soccer broadcasting rights. If the announced sale goes through this time,
News Corp, Italy's Cecchi Gori media group and four Italian soccer teams
will jointly own rights of four teams for a six-year period. Under the deal,
Telecom Italia would retain 35% of Stream and gain the strength of News Corp
to be better able to compete with European rivals. Meanwhile the Italian and
German governments are meeting this week to discuss the merger between
Telecom Italia and Deutsche Telekom. Despite the German government's
assurance that they will not interfere in Deutsche Telekom's management, the
Italian government is seeking more explicit limits on German voting rights
and a formal commitment by Bonn to sell its share of Deutsche Telekom.
Germany's finance minister, Hans Eichel said yesterday in Washington that
the German government could not speed the sale of Deutsche Telekom "in such
a way that we put pressure on the share price."
[SOURCE: New York Times (C4), AUTHOR:John Tagliabue]
(http://www.nytimes.com/yr/mo/day/news/financial/telecom-italia.html)

E-COMMERCE

EX-NETSCAPE CHIEF RESIGNS FROM CYBERPANEL
Issue: Internet Regulation/E-commerce
The departure of an Internet industry official allowed the US Senate to
equalize composition of a blue-ribbon panel studying Internet taxes ending a
two-month legal battle. Senate Majority Leader Trent Lott (R-MS) announced
that James Barksdale had stepped down from the Advisory Commission on
Electronic Commerce and would be replaced by Delna Jones, county
commissioner of Washington County (OR). The 19-member commission was
established last year to study what taxes states and localities should be
permitted to levy on the goods and services sold over the Internet. The
statute authorized Congress to appoint 16 members of the panel with 8 from
the cyberindustry and consumer groups and 8 from states and localities. The
complaint that had been launched by counties and mayors was that the panel
had been stacked with 9 members from the industry and only 7 from state and
local government. The panel begins meetings in June.
[SOURCE: Washington Post (Online), AUTHOR: Vicky Stamas (Reuters)]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/cyberpanelns...)

NEWSPAPERS ADVISED TO TRY E-COMMERCE
Issue: Electronic Commerce/New Media vs. Old Media
The rapid growth of large, nationally recognized Internet sites could
devastate local economies if people buy from national retailers online
instead of from local stores. Bob Cauthorn, an Arizona technology director,
suggested the antidote is for newspapers to offer help to local retailers to
support their sales of goods over the Internet. Cauthorn was part of a panel
talking to publishers at the Newspaper Association of America annual
convention. Retailers on the panel also suggested newspapers can find new ad
revenue in national e-commerce. Panelists agreed with Keith Butler of
OfficeDepot.com that newspaper advertisements effectively direct readers to
Web sites. Ken Seiff, CEO of Bluefly.com, a new online fashion retailer,
said e-commerce companies look to purchase advertising that drives consumers
to their site and also helps to build brand names. Seiff also suggested
newspapers invest in online businesses by trading blocks of advertising
space for equity in successful online companies.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/WAPO/19990427/V000936-042799-idx.html)

TOYS 'R Us to INCREASE INTERNET PRESENCE
Issue: E-commerce
Toys "R" Us announced Tuesday that it is overhauling its Internet site with the
help of Benchmark Capital -- which helped start Ebay. The Toys "R" Us site
(www.toysrus.com) is gearing up to become a dominant force in e-commerce. The
company is investing $30 million in a distribution center in Memphis. Both the
re-designed web site and the distribution center are to be up and running in
the next few months. Last year, Toys "R" Us closed 90 stores and cut 3,000 jobs
worldwide. The Internet presence was begun last June as part of an effort to
compete with discount chain stores, like Wal-Mart.
[SOURCE: New York Times (C8), AUTHOR:Reuters]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/28toys.html)
See also:
Toys "R" Us MAKES BIG PLAY ONLINE
[SOURCE: Chicago Tribune (Sec3, p.1), AUTHOR: Susan Chandler]
(http://chicagotribune.com/textversion/article/0,1492,ART-27754,00.html)

INTERNET

THE INTERNET VS. THE FIRST AMENDMENT
Issue: First Amendment
[Op-Ed] Laurence Tribe, a professor of constitutional law at Harvard
University, offers a constitutional view of the national debate about
whether the Internet is partly to blame for the school massacre in
Littleton (CO). He asks, "How much protection should Internet "speech"
receive under the First Amendment? And, under the Fourth Amendment's search
and seizure provisions, may the Government browse Web sites without a
warrant in order to nip mass murder plots in the bud?" Tribe's conclusion in
general terms is that new technology does not affect basic constitutional
principles and that the First Amendment shoulders none of the guilt in the
Littleton killings. Speech disseminating how to assemble an explosive device
on the Internet, "however reprehensible is thus entitled to a degree of
First Amendment protection." Tribe also concludes that government agencies
may freely browse Web sites without a warrant, but he suggests also that it
would be a grave mistake to assume that either government surveillance or
control can play an important role in preventing violent crimes.
[SOURCE: New York Times (A27), AUTHOR: Laurence H. Tribe]
(http://www.nytimes.com/yr/mo/day/oped/28trib.html)

HIGH-SPEED ACCESS BEGINS TO ALTER THE ROLE THE INTERNET PLAYS IN THE HOME
Issue: Broadband
Harmon explores what's at stake in the deployment of broadband technology.
Research firms predict that 10-16 million homes will sign up for broadband
access by 2002. Broadband technology crosses the lines of many media -- "enough
bytes can be squeezed over their wires to make video over the Internet look
more like television and audio sound more like radio." The speed capability of
a cable modem radically distinguishes it from a conventional modem. For
example, downloading a 2 and 1/2-minute "Star Wars" trailer on a cable modem
takes 2 minutes. It would take 2 hours using a conventional modem. With
broadband, the Internet is not longer something to get to -- it is already
there. The technology also makes it easier for users to become distributors of
content as well. The deployment of broadband was stalled somewhat because cable
companies didn't invest in it. Phone companies weren't inclined to offer less
expensive services because there was no competition. With investments like
AT&T's merger with TCI, cable companies are prepared and ready to invest in
upgrading equipment. Two types of broadband technology -- cable modem and
DSL offered by phone companies -- are used by 29 million households
nationwide. Broadband technology is only available in a patchwork of regions,
however. Also at stake are the nation's 4,500 Internet service providers that
are scrambling to make deals with regional Bell companies to use their digital
phone lines to offer customer's high-speed access. In Washington and across the
country a lobbying battle is underway over whether cable companies (like
AT&T/TCI) should be required to allow Internet providers to use their cable
lines.
[SOURCE: New York Times (C2), AUTHOR: Amy Harmon]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/28speed.html)

MICROSOFT TEAMS UP FOR NEW INTERNET
Issue: Internet/Technology
Microsoft is joining the research effort to build the formative stages of
the next generation of the worldwide computer network. The project, called
Internet2, is aimed at creating an ultra-fast, experimental computer network
with speeds 45,000 times faster than the best telephone modems people now
use to surf the Web. The technical and financial participation by
Microsoft, which was slow to support the Internet in its early days, is
expected today. Other participants already include IBM, Cisco Systems and
3Com. The Washington-based University Corporation for Advanced Internet
Development is coordinating research among more than 150 universities worldwide.
[SOURCE: Washington Post (Online), AUTHOR: Ted Bridis (Associated Press)]
(http://www.washingtonpost.com/wp-srv/WAPO/19990428/V000039-042899-idx.html)

CHANGES IN SEARCH INDUSTRY CREATE STRANGE BEDFELLOWS
Issue: Internet
An agreement between two of the nation's largest search engines has left
many people puzzled. Why would Netscape license, at no charge, its Open
Directory Web guide to its competitor Lycos? Some speculate that Netscape
made the guide available to avoid alienating the 8,900 volunteers that
maintain it, but some analysts are still just scratching their heads. "This
isn't the concept of co-opetition, where they're competing with each other
but also helping each other," said Danny Sullivan, the editor of Search
Engine Watch, an online newsletter. "This is just weird and strange." But
the complexity of how to staff a growing Internet guide cannot be
underestimated. No search service can afford a staff that can keep up with
the 5.4 million sites on the World Wide Web, and many are exploring ways to
economize - including partnering with other search engines. In speaking
about the decision to use Netscape's Open Directory, Andrew de Vries, a
spokesman for Lycos, said that it just "didn't make sense to scale the
directory to the growth of the Web with the in-house staff. Now we don't
have to add 300 people each year to keep up."
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/04/cyber/education/28education.html)

ADVANCED PLACEMENT COURSES OFFERED ONLINE
Issue: EdTech
Several new services have begun to offer Advanced Placement classes to high
school students over the Internet. Only about half of American high schools
offer any AP classes in their curriculum. Since many schools simply don't
have funding for the limited enrollment advanced courses, some are starting
to turn to the World Wide Web to help teach ambitious students. These online
courses are challenging both the abilities of students to pace themselves
and the technical capacities of companies to present complex material to
far-flung students. Elizabeth J. Hanson, a high school senior enrolled in an
Web AP class offered by APEX Online learning, noted that students like
herself "don't have a teacher saying 'You have to turn this paper in next
week or you get an 'F.' You have to be self-disciplined." Sally Narodick,
chief executive of APEX, observed that several schools had experienced
technical problems at the beginning of the semester. "It's a learning curve
for us, too."
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/04/cyber/education/28education.html)

SATELLITE

LEGISLATION PASSED TO TRANSFORM SATELLITE TV
Issue: Satellite TV
By a 422 to 1 vote, the House approved broad legislation Tuesday that
rewrites the rules for the satellite television industry. The new
legislation permits companies to broadcast local television programs and
long-distance signals that have until recently been either restricted or
more costly. The legislation imposes a "must carry" provision backed by
cable companies that mandates satellite companies that offer any local
signals must also offer all local programming in those markets by 2002. Rep.
Howard Coble (R-NC), the chief sponsor, said, "This will level the playing
field between cable versus satellite. With this new competition will come
better services at lower prices." The legislation comes nearly a month after
the official deregulation of the cable industry and after a series of recent
court decisions restricted satellite's ability to broadcast signals of the
major networks. Similar legislation has already been adopted by two Senate
committees and could be debated on the floor of that chamber next month.
[SOURCE: New York Times (C9), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/28satellite.html)

HOUSE PASSAGE OF SATELLITE COPYRIGHT, COMPETITION, & CONSUMER PROTECTION ACT
Issue: Satellite
From News Release: Television viewers all across America would have more
choices and greater consumer protections under a bill approved by the House
of Representatives, Chairman Tom Bliley (R-VA) and Subcommittee Chairman
Billy Tauzin (R-LA) said today. The bill -- H.R. 1554, the Satellite
Copyright, Competition, and Consumer Protection Act of 1999 -- was approved
today by voice vote under suspension of the rules. "This bill is good news
for consumers," Chairman Bliley said. "This bill will promote competition
with cable by giving American consumers more choices and greater consumer
protections. The bill will give satellite providers the legal authority to
offer consumers local broadcasting stations that carry their local news,
weather, and sports," Chairman Tom Bliley said. "This is the most important
telecommunications bill passed by the House since the historic Telecom Act
was approved in 1996," added Congressman Tauzin. "As we prepare to enter the
21st century, it will give consumers across the nation more choices when it
comes to the programming they want, and the prices they pay for it. This
legislation will have a revolutionizing impact on the marketplace." The
bipartisan bill, worked out by the House Commerce & Judiciary Committees,
will help consumers and improve competition with cable, by: 1) giving
satellite providers the ability to offer their consumers local broadcast
signals via satellite, also known as local-to-local; 2) ensuring that
satellite television consumers, who want distant network programming, can
ask for a waiver and an on-site signal test to receive such signals -- free
of charge; 3) providing free antennas to consumers who lose access to
network programming over the course of the next few months; and, 4)
protecting consumers who live in the outer reaches of a television station's
market from signal shut-offs.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/a8421c4f5171dd23852567370
07cd80f/daa7e37521cf5712852567600074f8df?OpenDocument)

ADVERTISING

NEW YORK TIMES TO REFUSE TOBACCO ADS
Issue: Advertising
Starting in May, the New York Times will be the first major national
newspaper to not accept advertising for cigar or tobacco products. Nancy
Nielsen, a spokeswoman for the Times, said that, although the paper was
"reluctant to ban advertising legal products," it also did not want to
"expose readers to advertising that is harmful to health or safety." The New
York Time's move is mostly symbolic since less than 1% of its advertising
revenue is provided by the tobacco industry. Message advertising, some of
which is part of the $1.45 billion anti-smoking campaign tobacco companies
have agreed to run as part of the their settlement with states, will be
exempt from the Times' tobacco ad ban.
[SOURCE: Wall Street Journal, AUTHOR: Wendy Bounds and Sally Beatty]
(http://wsj.com)]

JOURNALISM

STUDY: TEENS RELYING ON LOCAL PAPERS
Issue: Journalism
According to a recent study by the Newspaper Association of America, more
teenagers get their local news from newspapers than from another source. In
interviews with 1,200 students aged 12 to 17, the NAA found that 62% of
teens believed that the newspaper was the best medium to educate them about
local news, while about 21% chose television. Newspapers, however, were
listed as the last among types of media that teenager found most
interesting, exciting, or enjoyable. The study also found that teens were
much more likely to have watched local TV (90%), or have read a magazine
(80%), than have read a local newspaper (69%) in the last week.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press ]
(http://www.washingtonpost.com/wp-srv/WAPO/19990427/V000950-042799-idx.html)

SECURITY

CHERNOBYL STRIKES COMPUTERS WORLDWIDE
Issue: Security
The Chernobyl computer virus stuck more than 600,000 computers this week
with particularly severe impact in South Korea and Turkey. The virus caused
damage estimated in the hundreds of millions of dollars in wrecked equipment
and lost business. Nevertheless, no large-scale system failures were
reported. In the US, where anti-virus software is regularly used and users
had been
reminded of the virus, officials reported relatively few cases. Victims of
the bug said they had been unaware of it or were inadequately prepared to
prevent it. South Korea appeared to be the country that was hardest hit with
300,000 computers being damaged. In affected computers, the virus attempted
to erase the hard drive and write gibberish into the computer's system
settings, preventing the machine from being restarted.
[SOURCE: Washington Post (A1), AUTHOR: Kevin Sullivan]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/computers28.htm)

PHILANTHROPY

NEW LEADER TO TAKE OVER JOYCE FOUNDATION CONTROL
Issue: PHILANTHROPY
Paula DiPerna will become the sixth president of the Joyce Foundation in
July. Ms. DiPerna most recently has been a consultant for Leadership for
Environment and Development International. From 1979 to 1995, she worked
with the Cousteau Society, founded by marine ecologist Jacgues-Yves
Cousteau. The Joyce Foundation, based in Chicago, has assets of nearly $1
billion. The foundation has given $310 million in grants in the areas of the
environment, education, employment, gun violence prevention, money and
politics, and culture -- in the Great Lakes states. The foundation was
created in 1948 by Beatrice Joyce Kean with family wealth created by lumber
and sawmill interests. Ms. DiPerna succeeds Deborah Leff who left the post
in January to head the Chicago-based, nationwide hunger relief group Second
Harvest.
[SOURCE: Chicago Tribune (Sec 2, p.8), AUTHOR: James Janega]
(http://chicagotribune.com/)

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

TELEVISION
For Blacks, 50 Years On The TV Fringes (WP)

INTERNET
Virginia's 'Internet Governor' Woos Silicon Valley (NYT)
Why an Internet-Tax Moratorium Is Needed (SJ Merc)
Web-Page Distribution System Could Unclog Internet
Traffic Jams (NYT)
European Union Advances E-Commerce Policies (CyberTimes)

MERGERS
AT&T Has Set Itself Some Tough Challenges (NYT)
Comcast-AT&T MediaOne Duel Looms (WSJ)
AT&T British Ally In Venture In Japan (WSJ)
No Quick Political Pact Likely on Telecom Deal (WSJ)

SECURITY
Computer Virus Poised to Strike Today (WP)
Identity Theft: Is There Another You? (House)

JOBS
High-Tech Degrees out of Favor (SJ Merc)

ON CAPITOL HILL
Reauthorization of the National Telecommunications and
Information Administration (House)
Broadcast Ownership for the 21st Century Act (House)

TELEVISION

FOR BLACKS, 50 YEARS ON THE TV FRINGES
Issue: Content
A look at the current television season's representation of African Americans
finds traces of past stereotypical storylines. At present, there is not network
dramatic show with "a black story line at its center," Trescott reports.
African American households watched 40% more TV than nonblacks in the last
quarter of 1998 according to research firm TNMedia. Instead of dramas, black
representation is still limited to comedies. Trescott explores "PJ," an animated
Fox comedy, as well as shows like "Moesha," and "Malcolm and Eddie" are comedies
in the context of TV's history of representing black life. "PJ" takes place in
a housing project and draws from stereotypes, cheap laughs and the tension of
crime and poverty. "Cosby" alumnus Malcolm-Jamal Warner is a bar owner and
confronts problems of all small business owners. "Moesha," about a young black
teenage girl, suggests that hysteria has to precede problem solving. The article
reviews the ebb and the flow of the history of black representation on
television -- fluctuating between pristine, ideal families like the "Cosby's"
(and the 1965 response to negative portrayals of black characters, "Julia")
and stereotypical black comedic figures like J.J. on "Good Times." Trescott
concludes by saying that networks are still reluctant to depict the
complexities of black life. Eriq LaSalle, who plays Dr. Benton [no relation]
on "ER" said it
took five years for the show to focus and entire episode on his character --
something it had done for other white characters. The show rated number one
the week it aired.
[SOURCE: Washington Post (G1 on 4/25), AUTHOR: Jacqueline Trescott]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-04/25/149l-042599-idx.html)

INTERNET

VIRGINIA'S 'INTERNET GOVERNOR' WOOS SILICON VALLEY
Issue: Politics
"Everybody comes here trying to get a little Silicon Valley dust on their
shoes," said Netscape's chief executive, James L. Barksdale. Virginia Gov
James Gilmore (R) was recently on a three-day tour of Silicon Valley. VA is
the home of America Online, MCI WorldCom, Uunet, and PSINet. Gov Gilmore has
been trying to sell VA as ground zero on the revolution claiming that half
of all Internet traffic goes through the state. The Governor has also made
the Internet a central theme in his first 18 months in office: he helped
create and later signed what many are calling the first comprehensive set of
state Internet laws and created the first state technology cabinet post.
"There is a recognition this is a launching pad," said AOL's chief Steve
Case. "The policies set in Virginia could become a blueprint." Gov Gilmore
will also serve on a Federal commission examining Internet tax issues.
[SOURCE: New York Times (C4), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/26gov.html)

WHY AN INTERNET-TAX MORATORIUM IS NEEDED
Issue: Internet Regulation
Virginia Gov. James Gilmore III is expected to become chairman of a new
commission charged with advising Congress on the taxation of electronic
commerce. Here is one question from a face-to-face interview he did in
Silicon Valley with a San Jose Mercury News report. [The long version
is available on the Web site.]
Q - Some analysts believe that business-to-business transactions will be a
huge market, much bigger than online consumer transactions.
A - Yes. In fact, there are some who assert that most of the commerce on the
Internet today is business-to-business. It is future growth that rests with
the individual purchaser. That's where the growth is going to be, and the
balance will be much different as we go along. But we don't really have all
the facts yet. People today are operating mostly on instinct and fear.
There's a fear of loss of revenue, there's an instinct that somehow this is
a zero-sum game. I think we should demand the facts.
[SOURCE: San Jose Mercury News, AUTHOR: Monua Janah]
(http://www.mercurycenter.com/svtech/news/indepth/docs/qa042699.htm)

WEB-PAGE DISTRIBUTION SYSTEM COULD UNCLOG INTERNET TRAFFIC JAMS
Issue: Internet
Helping to prevent the transition of the World Wide Web into the World Wide
Wait are two companies -- Sandpiper Networks and Akamai Technologies -- that
distribute the contents of popular websites to server computers dispersed
throughout the Internet. "The whole name of the game here is to push content
to the edge of the Internet, very, very close to the end user," said David
Goodtree, vice president for marketing at Akamai, which is based in
Cambridge (MA). Although this service seems most necessary to high-volume
events now, analysts believe that as Internet traffic continues to grow,
this service will become a full-time necessity.
[SOURCE: New York Times (C1), AUTHOR: Andrew Pollack]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/26sand.html)

EUROPEAN UNION ADVANCES E-COMMERCE POLICIES
Issue: E-Commerce
Last week, the European Union gave tentative approval to two e-commerce
measures: electronic signatures and online consumer protection. The EU moved
closer to adopting a standard that would enable companies to send electronic
signatures via the Internet, and rely on them as if they were signed on a
paper contract. The laws of a consumers' country will take precedence when
transactions cross boarders. Both measures will have to win final approval
from the European Parliament. According to the Yankee Group, a Boston-based
consulting firm, European consumers bought about $650 million worth of goods
on the Internet in 1998, a figure that pales in comparison to what U.S.
consumers spent on the Web during the last holiday season alone ($5 billion,
according to the InterPublic Group of Companies, a research firm). By the
end of next year, the Yankee Group estimates European consumer Internet
sales will reach $4.6 billion -- a significant jump, but still far short of
U.S. sales totals for 1998, which the Boston Consulting Group estimated at
$13 billion.
[SOURCE: CyberTimes, AUTHOR: Bob Tedeschi (tedeschi( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/26commerce.html)

MERGERS

AT&T HAS SET ITSELF SOME TOUGH CHALLENGES
Issue: Mergers
AT&T made an unsolicited offer for the Mediaone Group cable company late
last week (while the rest of us were celebrating NATO). Comcast had thought
its $53 billion was enough -- AT&T's offer is $58 billion and contains a
higher percentage in cash so it will look much better to investors. Over the
weekend, AT&T also announced a new investment with international partner
British Telecommunications -- the two will purchase a 30% stake in Japan
Telecom for 1.8 billion. In this news analysis, Schiesel compare watching
AT&T these days to "Jaws" sequels...once you think it's safe... "But like a
voracious shark that ends up with a bunch of old license plates in its
belly, AT&T may have a tough time digesting everything it has tried to
swallow. The main question for AT&T now is whether its appetite has exceeded
its ability to integrate its businesses into the lean yet powerful
communications machine that [the company's chairman C. Michael] Armstrong
wants AT&T to become," Schiesel writes. If this deal goes through, AT&T will
be the #1 long distance provider and the #1 cable operator in the US.
Fearing that Baby Bells -- especially Bell Atlantic -- will start receiving
regulatory approval to offer long distance service, AT&T is rushing to make
deals that will ensure access to residential customers. The plan is to take
the war to a new front -- off the conventional phone network and onto cable
TV systems. AT&T derives a much higher percentage of long distance revenues
from residential consumers than do rivals WorldCom and Sprint.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/26att.html)

COMCAST-AT&T MEDIAONE DUEL LOOMS
Issue: Cable/Merger
As Comcast thinks up ways to provide MediaOne with a counteroffer -- a response
to AT&T's surprise bid made last Thursday to takeover the cable company -- AT&T
and MediaOne took the first step in formal merger talks. Comcast has received
calls from companies offering to serve as a "white knight" to help prevent the
AT&T takeover -- including Microsoft and America Online, Comcast employees
said. Personal calls from Microsoft Chairman Bill Gates and AOL chairman Steve
Case were made to express concern for allowing AT&T to have so much control
over the cable-TV industry. Microsoft owns a 5% stake in Comcast. AOL has been
pushing the cable industry to open up its networks to Internet service
providers. AOL also wants access to cable customers to build AOL Internet
services. If AT&T is successful at the MediaOne takeover, it will have access
to over 65% of the nation's cable-TV customers. AT&T has said that anyone not
helping its cause is considered a rival. AT&T has been negotiating with
cable-TV firms across the country in order to use their cable lines to offer
local phone service. With the announcement of a takeover bid for MediaOne, AT&T
said that approach wasn't working.
[SOURCE: Wall Street Journal (A3), AUTHOR: Leslie Cauley]
(http://wsj.com/)

AT&T BRITISH ALLY IN VENTURE IN JAPAN
Issue: International/Merger
British Telecom and AT&T announced that they will jointly invest Y220 billion in
Japan Telecom. The global alliance between British Telecom and AT&T made last
year is still awaiting approval by US regulators. The joint venture in Japan
Telecom represents the biggest investment by foreign companies in the Japanese
market. Japan Telecom will serve as the distributor for global services offered
by AT&T/British Telecom. "Customers will have the same services available to
them whether they are in Tokyo, London, or New York City," said John D. Zeglis,
AT&T president. Japan Telecom had welcomed the foreign investment to ward off
Japanese competitor, Nippon Telegraph. However, it was not happy with the
AT&T/BT having a 30% stake in the company, which is just short of the 1/3
stake that would give them veto power under Japanese law. Japan Telecom also
wanted East Japan Railway to remain a number one shareholder. AT&T/BT modified
the deal, giving the two foreign companies equal 15% voting rights, while East
Japan Railway has 15.1%.
[SOURCE: Wall Street Journal (A12), AUTHOR: Peter Landers]
(http://wsj.com/)

NO QUICK POLITICAL PACT LIKELY ON TELECOM DEAL
Issue: International/Merger
The Italian government is threatening to use its "golden share" veto power to
prevent the Deutsche Telekom/Telecom Italia merger unless the German government
provides assurances that it won't interfere with the new company's affairs and
provides a schedule for privatization. Germany says it has done all it can to
assure that it will sell its 72% stake in the company as quickly as the market
could bear it. The Italian government fears the Deutsche Telekom merger with
Telecom Italia will in effect hand over Telecom Italia to the German
government. Under pressure from the European Union and Olivetti, the Italian
government needs to define more clearly when they would use their "golden
share" veto power. Deutche Telekom may have to "sweeten its bid" because its
offer is only slightly higher than Olivetti's current share price. Separately,
Telecom Italia will announce today that it will sell its share in pay-TV unity
Stream to a group of investors, including Rupert Murdoch's News Corp. News Corp
will take 30% stake in Stream.
[SOURCE: Wall Street Journal (A12), AUTHOR: William Boston and Deborah Ball]
(http://wsj.com/)

SECURITY

COMPUTER VIRUS POISED TO STRIKE TODAY
Issue: Computer Technology
On the 13th anniversary of the nuclear disaster in Ukraine, the Chernobyl
virus is poised to strike today, threatening computer equipment that uses
Windows 95 or 98. The virus can erase a computer's hard drive and prevent
the equipment from restarting. Experts say off-the-shelf antivirus software
can prevent infection, and several companies are offering free inoculation
tools on their Web sites. The virus, which was discovered last summer,
doesn't spread as quickly as the Melissa virus because it requires a person
to launch an infected program file to contaminate a computer.
[SOURCE: Washington Post (Online), AUTHOR: Ted Bridis (Associated Press)]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/chernobyl042699
.htm)
See also:
COMPUTER EXPERTS WARN OF NEW VIRUS
[SOURCE: San Jose Mercury News, AUTHOR: Dick Satran (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/375696l.htm)

IDENTITY THEFT: IS THERE ANOTHER YOU?
Issue: Privacy/Security
Links to witness list and statements made at last week's Telecom
Subcommittee hearing on identity theft.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/Witnesses?OpenView&StartK
ey=36A3E2F70D7133C2852567540078E2F9)

JOBS

HIGH-TECH DEGREES OUT OF FAVOR
Issue: Education Technology
A report to be released today by the American Electronics Association, shows
that students seem to be losing interest in studying computer science,
engineering and other tech-related fields, as fewer students have been
graduating with high-tech degrees. The report, called "CyberEducation: U.S.
Education and the High-Technology Work Force," warns that the nation's
future growth could be hampered by a shortage of trained professionals. The
report suggests that part of the problem may be that US schooling from
kindergarten through high school is not adequately preparing students for
these fields in college. Another problem is that many people think engineers
are nerds.
[SOURCE: San Jose Mercury News, AUTHOR: Jonathan Rabinovitz]
(http://www.mercurycenter.com/svtech/news/indepth/docs/educ042699.htm)

ON CAPITOL HILL

REAUTHORIZATION OF THE NATIONAL TELECOMMUNICATIONS AND INFORMATION
ADMINISTRATION
Issue: Budget Issues
Thursday, April 29, 1999 10:00 a.m. in 2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on Reauthorization of the National Telecommunications and Information
Administration (NTIA).
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/schedule.htm)

BROADCAST OWNERSHIP FOR THE 21ST CENTURY ACT
Issue: Broadcast Ownership
Tuesday, May 4, 1999 10:00 a.m. in 2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on H.R. 942, the Broadcast Ownership for the 21st Century Act, a bill to
reduce restrictions on media ownership.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/schedule.htm)

--------------------------------------------------------------
Sorry...no Chicago Trib coverage today.

TELEVISION
'Adrenaline Television' Dramatizes the Horror,
While It's Happening (ChiTrib)
NBC's News Machine Marches To War (WP)
Fox to Become Newsier (ChiTrib)
Speech: From the Vast Wasteland to the Vast Broadband (FCC)
Speech: The Digital Mosaic (FCC)

INTERNATIONAL
Sowing Technology's Seeds In Developing Countries (CyberTimes)

ECOMMERCE
E-Commerce Experts' Exhortation: Webify (ChiTrib)
Lycos Tops Yahoo in Internet Ratings (SJ Merc)
VerticalNet Launches Web Auctions for Businesses (SJ Merc)

INTERNET
Tragedy Pulls People Online (WP)
New FTC Rules Aim To Protect Kid Web Privacy (WSJ)

TELEPHONEY
Wireless Cable Gets Boost (B&C)
Phone Giants Say Merger Hinges On Role of Germany (NYT)
AT&T Plans Local Service In New York (WSJ)

TECHNOLOGY
New Technologies Can Help the Elderly Stay More Connected (WSJ)

SAFETY
Public Safety National Coordination Committee (FCC)

TELEVISION

'ADRENALINE TELEVISION' DRAMATIZES THE HORROR, WHILE IT'S HAPPENING
Issue: Coverage of Disasters
The Trib's media and television writers provide a quick review of the media
coverage of the Colorado school shooting. Cable news channel CNN and
Denver-area broadcast outlets provided live coverage of the disaster --
coverage some may feel went too far. Media outlets were providing
information about where students were hiding throughout the school while the
gunmen where still in the building; they also provided live video of
students escaping from the building -- making their route obvious to those
inside. Cell phones also played a role in coverage as one student called
into a local television station to report his situation.
[SOURCE: Chicago Tribune (Sec 1,p.10), AUTHOR: Tim Jones & Steve Johnson]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904210094,00.html)

NBC'S NEWS MACHINE MARCHES TO WAR
Issue: Journalism
"Most correspondents leave 90 percent of their stuff on the floor after
doing a two-minute spot for 'Nightly News' and a minute-30 for 'Today,'"
says Jeff Zucker, executive producer of NBC's "Today" program. But not at
NBC today. NBC is the only news operation able to cover the war in
Yugoslavia on a broadcast network and a 24-hour cable network, as well as on
the Internet. The battle over Kosovo has provided a showcase for the news
machine built by NBC News President Andrew Lack: the top-rated morning show,
the top-rated nightly newscast, the top-rated Sunday talk show and in
"Dateline," a highly rated newsmagazine airing five nights a week. Lack uses
all of those network outlets to provide war coverage. Cable channel MSNBC,
founded on the Big Story approach, has been carefully following the action.
Since the NATO bombing began, MSNBC's rating are up 103%. Kosovo has been a
boon to the MSNBC Web site, which is run from Microsoft headquarters in
Redmond, WA. It has its own staff in Yugoslavia and uses MSNBC material.
TheWeb site also has featured "chats" with Yugoslav and Serbian leaders. The
site is drawing as many as 1.4 million visitors a day, an increase of more
than 30% since the war began. Even cable business channel CNBC runs regular
live updates on the war.
[SOURCE: Washington Post (C1), AUTHOR: Howard Kurtz]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-04/21/081l-042199-idx.html)

FOX TO BECOME NEWSIER
Issue: Journalism/Television Economics
"The news business is a good business to be in," said Stacey Marks-Bronner,
vice president and general manager of WFLD-TV. The Chicago affiliate of the
Fox network will expand local news coverage by 90 minutes/day starting in
July. Facing increased competition from syndicated shows -- like The
Simpsons and Friends -- and cable, the prime-time local news audience is
shrinking in Chicago and across the country. Other Chicago stations are
actually cutting back on newscasts with declining ratings. WFLD will add the
coverage in the early AM hours and begin a noon news broadcast to compete
with the one other station that does so now.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones]
(http://chicagotribune.com/business/businessnews/article/0,1051,SAV-99042103
10,00.html)

SPEECH: FROM THE VAST WASTELAND TO THE VAST BROADBAND
Issue: Digital Television
"We are entering what I believe will be the most exciting era [of
television] ever. Audiences will be empowered in ways never done before to
paint their own landscapes of entertainment and discovery," FCC Chairman
Kennard said in an address to the National Association of Broadcasters.
"Internet companies are taking the step to jump from the PC platform to the
TV platform. That's why some say that these companies will in the long run
end up putting all of you broadcasters out of business. Once again, people
are writing the obituary of the broadcasting industry." Digital television
is the key to unlocking new partnership opportunities, the Chairman
suggested. "With the onrush of technology making convergence more and more
possible, inevitable, really, you must understand that convergence is not
synonymous with consolidation. Convergence means more choices. It means new
media companies like Yahoo will be bursting onto the scene. It does not
mean that these new industries will be controlled by a handful of giant
conglomerates."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/spwek914.pdf)

SPEECH: THE DIGITAL MOSAIC
Issue: Digital Television
Commissioner Ness' speech before the NAB Convention in Las Vegas, Nevada:
"Conversion from analog to digital television is one of the most complex but
critical undertakings this industry has experienced. The technology is new;
The business strategies are new; The programming is new; And the delivery
mechanisms are new. It is like an intricate mosaic -- magnificent, but hard
to decipher at first. But as each new tile is laid, the design takes shape
and substance." Commissioner Ness addresses What's Working and Where
Improvement is Needed concerning the transition. She concludes: "A
successful digital deployment can be measured in terms of whether consumers
understand and embrace digital television. More directly, it will be whether
consumers are willing to put down their hard-earned dollars for digital
receivers and set top boxes. That is going to require compelling programming
-- the best that the industry has to offer -- and enough of it to attract
consumers and advertisers. It will also take time -- time to solve the
compatibility issues. Time to produce captivating programming and must-have
services. That time is now. We have seen a revolution of epic proportions in
the growth of digital and the Internet. The same can be true of digital
television if we all work together to resolve these issues. The defining
tiles of the mosaic have been laid. Let all of the industries redouble their
efforts to complete this tableau for the benefit of the American public and
the world."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Ness/spsn907.html)

INTERNATIONAL

SOWING TECHNOLOGY'S SEEDS IN DEVELOPING COUNTRIES
Issue: International/Internet
Three groups have pulled their efforts in bringing educational technology
services to 20 developing countries. The initiative, called Alliance for Global
Learning, is made up of World Links for Development, Schools Online and
International Education and Research Network (I*EARN). By helping countries,
such as Lebanon, Peru and Zimbabwe, gain equipment and training to use the
Internet the Alliance hopes to make the Internet a more interesting place and
less dominated by Western ideas and content. The project is broad in that it
seeks to provide equipment, teacher training and content. Michael Chertok,
director of Schools Online, says the basic problem of getting schools wired
will be a challenge because many buildings don't have telephone service or a
steady electric current. Touraj Rahimi, president of Schools Online says that
Internet access is very expensive in developing countries. For example, he said
a school he visited in Uganda has a computer lab with 20 machines but was only
able to get online for an hour each day. Alliance members say if telephone
service is a problem, they will look into using wireless technology. The
project will be developed in English, Spanish, Portuguese, and French. One of
the organizers said: "The Internet should not be an English-only medium. It
should be a way for students and teachers around the world to be able to
communicate."
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/04/cyber/education/21education.html)

E-COMMERCE

E-COMMERCE EXPERTS' EXHORTATION: WEBIFY
Issue: E-Commerce
A report from the Spring Comdex convention in Chicago. "Productivity demands
will force every company on the planet to Webify their processes," Rick
Roscitt, president and CEO of AT&T Solutions. "Ultimately, networking
enables new ways of doing business and reaching customers."
Another speaker at the convention, Interworld's Steve Rabin, identifies the
four key components to a successful e-commerce site: 1) Fast, accurate
searching. "These are things like having a catalog, doing pricing and
promotions, doing sophisticated personalization and having a very
sophisticated search engine so that when a customer queries on a particular
search, he gets a response from a search that closely matches what he was
looking for rather than 120 things that don't really match." 2) Order
management. "You have to be more than just placing an item in a basket. You
want to have examples, address books and you may want to have gift
registries." 3) Account management. "These are things at a high level, like
authentication and authorization. Since all customers aren't going to be
allowed to do the same thing, how do I authorize them to do the right
things? 4) Order fulfillment. "That's the inventory component, the pick,
pack and ship, so that when a customer orders something it actually gets to
the customer in the right quantity, at the right time at the right price at
the most economical cost."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Darnell Little & Jill Blackman]
(http://chicagotribune.com/business/businessnews/article/0,1051,SAV-99042103
11,00.html)

LYCOS TOPS YAHOO IN INTERNET RATINGS
Issue: Internet
Lycos has been saying it was going to number one. In March that is what
happened according to Media Metrix, the most trusted pollster on top Web
sites. Lycos beat out rival Yahoo by 51.8% to 50.8% for Web supremacy. That
means 51.8% of the nation's Internet users visited a Lycos Web site last
month, including the Tripod and Angelfire Web site hosting services, the
WhoWhere Internet directory service, the Wired Digital news service, and the
Lycos and Hotbot Internet search sites. In contrast Yahoo builds all of its
traffic around a single core site. Lycos is presently moving to close its
controversial deal to merge with the media properties of USA Networks.
[SOURCE: San Jose Mercury News, AUTHOR: Boston Globe]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/082066.htm)

VERTICALNET LAUNCHES WEB AUCTIONS FOR BUSINESSES
Issue: Electronic Commerce
Business Web site operator VerticalNet has a new angle for online auctions.
On Tuesday the company announced the launch of a business-to-business Web
auction service. Under the auction service, firms that use VerticalNet Web
sites will now be able to auction off excess inventory or other merchandise.
Buyers can browse the auction and fixed-price categories free of charge and
place bids on items of interest. Sellers pay commission when the items are
sold. VerticalNet offers 35 electronic commerce and information sites
covering businesses ranging from pulp and paper to wireless design.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/083204.htm)

INTERNET

TRAGEDY PULLS PEOPLE ONLINE
Issue: Journalism
Television carried information about yesterday's shooting at a suburban
Denver high school around the globe within moments. Just as quickly the
Internet carried news and gossip around the world. By early afternoon Web
users filled up the hastily set up discussion forums, or "chat room." As in
past disasters, the Internet yesterday became a strange cross between an
instant information conduit and a sounding board. In a weird mixing of old
and new technologies, most of the news that was traded in the chat rooms
came from television. Many of the chatters were not seeking news but were
seeking the opportunity to let off steam or make a point. The comments
sometimes got heated, spawning arguments and not a small amount of foul
language.
[SOURCE: Washington Post (C1), AUTHOR: Michael D. Shear]
(http://www.washingtonpost.com/wp-srv/national/daily/april99/chat21.htm)

NEW FTC RULES AIM TO PROTECT KID WEB PRIVACY
Issue: Privacy
The Federal Trade Commission is expected to propose new rules that would
require parental approval before Web sites could collect personal
information from children. A FTC study last spring determined that 89% of
children's Web sites collected personal data, while only 23% asked kids for
parental permission before doing so. The new rules are an important step in
the implementation of the Children's Online Privacy Protection Act passed by
Congress last fall. The FTC proposal, however, dose not specify a particular
means for gathering parental consent. "Industry has tried to weaken the
rules, pushing for consent through email alone, " said Katerina Kopp, senior
policy analyst at the Center for Media Education. "We're concerned that this
will undermine the intent of the law." Absent in the proposal are also
provisions that would protect kids from sites that are not aimed
specifically at children. Web sites that do not cater to kids and do not ask
for their ages do not have to seek parental permission before gathering
personal information. The FTC's proposed rules will be released today and
will be available for public comment. Finalized rules are expected in October.
[SOURCE: Wall Street Journal (B1), AUTHOR: John Simons]
(http://wsj.com)

TELEPHONEY

WIRELESS CABLE GETS BOOST
Issue: Wireless
Last week, the deal between People's Choice TV (PCTV) and Sprint rekindled a
market for wireless cable deals. The deal between Sprint and PCTV ensures
"last-mile access" into consumers home for Sprint in key markets, including
Chicago, Detroit, and Houston. People following the deal say that more wireless
acquisitions are likely. Internet service providers who are looking for
alternatives to Baby Bells may be likely buyers. Experts say what has been
called the wireless cable industry is now really focused on high-speed data.
Other likely buyers of wireless spectrum are long-distance providers, like
Sprint and MCI WorldCom. "The issue really is that they have to defend their
long-distance brands," said an industry source. The Sprint/PCTV deal may
disprove what the AOL-led alliance, OpenNet proposes -- that cable holds a
monopoly in high-speed data. Using wireless technology for high-speed data
transmission doesn't have the same restrictions of phone companies' DSL
service. It can offer speed similar to cable modems.
[SOURCE: Broadcasting&Cable (p. 88), AUTHOR: Price Colman]
(http://www.broadcastingcable.com/)

PHONE GIANTS SAY MERGER HINGES ON ROLE OF GERMANY
Issue: Internationl/Merger
Telecom Italia and Deutsche Telekom made a "tentative" agreement to merge
Tuesday night. The final deal depends on assurance that the German
government, which would retain a 45% stake in the new company, would reduce
its voting rights. The tentative approval came after Deutsche Telekom said
it would support Telecom Italia's demand that the German government not
interfere with the structure of the new company. The merger would create a
huge company, worth $180 billion. That's larger than the proposed merger
between Ameritech and SBC Communications that is worth $173 billion. German
newspapers reported that the government favors reducing its voting rights to
equal that of the Italian government, which holds 3.4% in the company.
Critical of the deal, a spokesperson for Schroder's Social Democratic Party,
said that German antitrust officials should stop the merger. Executives of
Mannesmann, Telecom Italia's biggest domestic rival is also critical of the
merger.
[SOURCE: New York Times (C1), AUTHOR: John Tagliabue]
(http://www.nytimes.com/yr/mo/day/news/financial/telecom.html)

AT&T PLANS LOCAL SERVICE IN NEW YORK
Issue: Local Telephony
AT&T has plans to enter the local telephone market, with the help of Bell
Atlantic's phone network, in the state of New York. Bell Atlantic has agreed
to lease its local network to competitors, like AT&T, for a deep discounts
as a way to gain regulator approval for entering the long distance market.
AT &T''s desire to enter the local phone business prompted it to purchase
TCI and begin negotiation with other cable operators. TCI, however, does not
have cable lines in New York, and even in location that AT&T does have
access to cable lines it will take nearly two years to upgrade those lines
for two-way telephone service.
[SOURCE: Wall Street Journal (A3), AUTHOR: Stephanie Mehta]
(http://wsj.com)

TECHNOLOGY

NEW TECHNOLOGIES CAN HELP THE ELDERLY STAY MORE CONNECTED
Issue: Health/Tech
New products are being developed to help provide greater safety and
connection to elderly individuals who may be living alone. One of the more
ambitious projects is Cozer-Keystone Health System's plan to use Wed-TV and
cameras to connect older people at home to health care and social service
workers. The Commerce Department provides funding for Crozer-Keystone and
others to experiment with using technology to aid in the care of elderly and
other home bound or isolated patients. "Technology is simply a means to
build relationships that enable old people to live independently," said
Edward Baum of Crozer-Keystone. While the current costs of such high-tech
products are prohibitively expensive for many consumers, prices of
interactive technologies are quickly falling.
[SOURCE: Wall Street Journal (B1), AUTHOR: Sue Shellenbarger]
(http://wsj.com)

SAFETY

PUBLIC SAFETY NATIONAL COORDINATION COMMITTEE
Issue: Public Safety
The FCC has established the Public Safety National Coordination Committee,
pursuant to the provisions of the Federal Advisory Committee Act, to advise
the Commission on a variety of issues relating to the use of the 24 MHz of
spectrum in the 764-776/794-806 MHz frequency bands (collectively, the 700
MHz band) that has been allocated to public safety services. The first
meeting of the committee will be April 29, 1999; 10:00 a.m.--5:00 p.m at the
Federal Communications Commission, Commission Meeting Room, Room TW-C305,
445 Twelfth Street, S.W., Washington, D.C. 20554. Agenda includes: 1.
Introduction and Welcoming Remarks, 2. Approval of Agenda, 3. Committee
Charter and other administrative matters, 4. Committee Structure, and 5.
Work Program/Organization of Work. The NCC will have an open membership. For
Further Information Contact: D'wana R. Terry, Chief, Public Safety and
Private Wireless Division, Wireless Telecommunications Bureau, FCC and
Designated Federal Officer of the Public Safety National Coordination
Committee (202-418-0680). See the NCC homepage
(http://www.fcc.gov/wtb/publicsafety/ncc.html)
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/Public_Notices/1999/da990643.html)

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

E-COMMERCE
Can Open Directory Survive At Portals Geared To Commerce? (SJ Merc)
Online News Sites Examine Separation Of Advertising, Editorial (SJ
Merc)
The Net's Real Business Happens .Com to.Com (NYT)

INTERNET/LEGISLATION
Lawmakers' Tech Votes (WP)
Privacy on Internet Poses Legal Puzzle (NYT)
Is There Another You? (House)

TELEPHONY
FCC May Require Baby Bells To Open Networks To Rivals (WSJ)
Paging Allies Focus Strategy on the Internet (NYT)
BellSouth Is Buying Into Qwest (WP)

JOURNALISM
Intel's Chairman Tells Newspaper Publishers to Supply More Insight
(NYT)
A Look Back in Wonder (WP)

TECHNOLOGY
2005: A Student Odyssey Into The Office (SJ Merc)

SATELLITE
International Satellite Reform, User Perspective (Senate)

E-COMMERCE

CAN OPEN DIRECTORY SURVIVE AT PORTALS GEARED TO COMMERCE?
Issue: Internet
The Open Directory got another boost when Lycos decided to adopt the
fast-growing guide to the Web. Open Directory, a kind of classified guide to
the Web owned by Netscape Communications, now spans more than 430,000 sites,
with about 1,200 to 1,400 sites added each week. The Open Directory is
dependent on 8,800 volunteers for content. Yahoo, the No.1 directory, on the
other hand, depends on a relatively small group of editors, which, the
company says, exercises much-needed editorial judgment. Mike West, a
technology analyst, observes the difference, "The Internet now is two
worlds. There's the Internet as a kind of native phenomenon, and there's the
Internet as a commercial network. There's a dislocation that's going on."
Some see the Lycos use as an intersection of e-commerce and the open Net.
Though Lycos does not charge for the Web content it aggregates, it hopes to
use that content to attract e-commerce and advertising dollars.
[SOURCE: San Jose Mercury News, AUTHOR: Monua Janah]
(http://www.mercurycenter.com/svtech/news/in depth/docs/081180.htm)

ONLINE NEWS SITES EXAMINE SEPARATION OF ADVERTISING, EDITORIAL
Issue: Content
The online journalism industry is starting to discuss ways to prevent
contextual advertising from compromising editorial integrity and credibility
of the Web. E-commerce sites have plenty of information on them, and
Internet publication sites have advertising that looks like information.
News sites are starting to realize they need to address the issue in order
to maintain their integrity and compete with new rivals. Last month at a
California conference, industry leaders discussed the adoption of disclosure
policies to ensure editorial integrity. Some news sites, such as CNET and
ZDNet, already have policies, but they are still the exception. The Internet
Content Coalition, a trade group of content producers, is beginning to push
for guidelines that would help Web sites differentiate between advertising
and editorial content. Some industry members, however, want to go a step
further and eliminate contextual ads together.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/348624l.htm)

THE NET'S REAL BUSINESS HAPPENS .COM TO .COM
Issue: E-Commerce
While the papers may be filled with stories about people buying everything
from books to boots online, it is the business-to-business transactions that
is the real e-commerce news. Business-to-business sales, which were worth 5
five times as much as consumer retail sales, totaled $43 billion dollars in
1998. In addition to saving businesses money, ordering over the Internet has
lead to greater efficiency and reduced errors in the fulfillment process.
There are, however, barriers to the proliferation of corporate e-commerce.
It may take the Internet a while to over come the bureaucracy and corporate
culture that mark traditional business practices, making the rate of
e-commerce growth much slower among business than for the retail world.
[SOURCE: New York Times (C1), AUTHOR: Bob Tedeshi]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/19gas.html)

INTERNET ESCROW SERVICES ARE CATCHING ON
Issue: E-Commerce
With the explosive growth of Internet auctions, consumers are increasingly
turning to third parties to help reduce the risk involved with
person-to-person transactions. Internet escrow services that hold money
until both buyer and seller are satisfied with a transaction have become
quite popular as the value of auction goods increase. Both buyers and
sellers look to escrow providers to reduce the risk of fraud, bounced
checks, or goods that do not meet expectations. According to Sanjay Bajaj,
vice president for marketing and business development at I-Escrow, the
number of registered I-Escrow users has grown to 50,000 from 5,000 in the
last five months alone. Yet, still less than one percent of auction
transactions use escrow. While most autions sites do not actively promote
third party escrow services, this could soon change. With mounting
government pressure to curb Internet fraud, e-auctioners might begin to view
these services as a means of preventing government intervention.
[SOURCE: CyberTimes, AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/99/04/cyber/commerce/19commerce.html)

TELEPHONY

FCC MAY REQUIRE BABY BELLS TO OPEN NETWORKS TO RIVALS
Issue: Regulation/Telephony
On Friday the Federal Communication Commission (FCC) issued a exploratory
proposal that would require Baby Bells to open their networks to competitors.
As part of the Telecommunications Act of 1996, Baby Bells are required to
make available "seven other parts of their telephone networks" to
competitors. In
1996, the FCC argued that this was the minimum required to allow rivals to
compete on "equal footing." Following a Supreme Court ruling in January, 1999,
the FCC is now reviewing that list of seven. The FCC plans to provide a final
access proposal in August. Baby Bells are "infuriated" that the FCC is even
considering requiring that aspects of their networks, such as high-speed lines
-- used for Internet connections -- may be opened up to rivals. Rober Blau,
BellSouth's vice president of regulatory affairs, says that these lines are
already available to rivals. Larry Strickling, the FCC's telephone official, is
not so sure: "While parts of high-speed lines are available on the market, he
said they don't offer the same wide reach as the Bells' vast networks." The
controversial proposal makes only two recommendations. First, a national
standard for opening parts of the Baby Bell networks. Second, that "loops" (the
final piece of the phone line that links a phone company to a customer's phone)
be included in the new list of parts to be opened up to rivals.
[SOURCE: Wall Street Journal (B2), AUTHOR: Kathy Chen]
(http://wsj.com/)

PAGING ALLIES FOCUS STRATEGY ON THE INTERNET
Issue: Wireless
Many of the nation's largest paging companies plan to announce an alliance
to deploy inexpensive hand-held computers that use a new two-way wireless
technology developed by Motorola Inc. With the explosion in use of wireless
telephones, the paging industry faces an uncertain future. To compete with
the booming cell phone business, the paging group plans to incorporate
Motorola technology into hand held computers like the 3Com's Palm Pilot.
"Our vision of the future is that most people will carry two wireless
devices," said John D. Beletic, chairman of the new alliance and chairman of
Pagemart Wireless Inc., one of the largest paging companies. "One is going
to be a telephone, and the characteristics of the telephone are that they
are going to get smaller and smaller and smaller."
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/19page.html)

BELLSOUTH IS BUYING INTO QWEST
Issue: Merger
BellSouth Corp. is buying a 10% equity stake in Qwest Communications
International for $3.5 billion. The two companies will jointly market
Qwest's Internet and voice communications services along with BellSouth's
local networking services. If BellSouth gets approval to offer its own
long-distance service, the companies plan to jointly offer an array of
services such as ATM and electronic commerce. The deal is expected to close
by May.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/WAPO/19990419/V000888-041999-idx.html)

INTERNET/LEGISLATION

LAWMAKERS' TECH VOTES
Issue: Politics
Want to know how a particular member of Congress stacks up on technology
votes? The Information Technology Industry Council has published a voting
guide with the votes of Senators and Representatives on 18 technology bills.
This trade association for big technology companies has decided whether a
vote is "pro-IT" or not. [The votes and scores are in pdf format at
(http://www.itic.org/iss_pol/voteguid.pdf).]
[SOURCE: Washington Post (F5), AUTHOR: WP Staff Writer]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-04/19/009l-041999-idx.html)

PRIVACY ON INTERNET POSES LEGAL PUZZLE
Issue: Privacy
A gathering at Massachusetts Institute for Technology (M.I.T.) last Wednesday
focused on, "broad social and legal issues involving the Internet: identity,
privacy, anonymity and free speech." The particular item of discussion was a
M.I.T. developed technology called "anonymous remailer." It can be used to
cover up the origin of a piece of email or the computer from which a user
browsed the Internet. The panelists included Philip Reitinger, a prosecutor for
the Justice Department, and Nadine Strossen, a professor at the New York Law
School and president of the American Civil Liberties Union. Reitinger pointed
out that anonymity has its negative side when used as a criminal device -- "you
can't put a pseudonym in jail," he said. "If people are truly anonymous, there
can be no law enforcement." Ms. Strossen of the ACLU responded: "Certain
individual rights cannot be sacrificed because of the panic and fears of abuse
of a new technology, or because it creates problems for law enforcement." She
identified these "individual rights" as freedom of speech and press; and
privacy -- to be protected in cyberspace as in any space. M.I.T. Professor
Kaashoek, also a panel member, said that since the university's remailer was
set up in 1996. M.I.T. has received several subpoenas from state and federal
authorities and have only been able to offer tracking information for a piece
of the "many-legged communication paths." In response to Strossen's criticism
of corporations' intelligence of Internet an user's every move, Reitinger
received much applause for this ominous statement: "I think we are perilously
close to a lose-lose situation in which citizens have lost their privacy to
commercial interests and criminals have easy access to absolute anonymity.
That's not the world we want."
[SOURCE: New York Times (C4), AUTHOR: Steve Lohr]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/19anon.html)

IS THERE ANOTHER YOU?
Thursday, April 22, 1999 10:00 a.m. in 2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection and the
Subcommittee on Finance and Hazardous Materials joint hearing on Identity
Theft: Is There Another You?
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/schedule.htm)

TECHNOLOGY

2005: A STUDENT ODYSSEY INTO THE OFFICE
Issue: Information Technology
Some Palo Alto High School students have seen the office of 2005 and are
arming themselves to deal with it. About 40 students worked on a dozen
inventions -- most in concept -- as part of a project sponsored by a company
studying the skills office workers will need in 2005. The Lie Detector Chair
has built-in sensors; the employee has no idea whether he is being tested.
There's the People Tracker, a device to find co-workers wherever they may be
by typing in an ID number. Watchdog let's parents keep an eye on children
and talk to them, while they work elsewhere. Helper Bot brings food, runs
errands and doesn't gripe. [Hey, we want a Helper Bot already!]
[SOURCE: San Jose Mercury News, AUTHOR: Mike Cassidy]
(http://www.mercurycenter.com/svtech/news/indepth/docs/mc041899.htm)

JOURNALISM

INTEL'S CHAIRMAN TELLS NEWSPAPER PUBLISHERS TO SUPPLY MORE INSIGHT
Issue: Journalism
Andrew S. Grove, Chairman of Intel, predicted that newspapers have three
years to live. He told the members of the American Society of Newspaper
Editors that they will have to make some changes if they want to survive the
theft of advertisers and eyeballs by online new sources'. Grove told the
editors that they need to be innovative and willing to spend more to gather
the news. "From a publisher's standpoint, there's going to be a huge push
and pull," he said, "This requires more money at a time when margins are
going to be under attack." One issue not addressed by Grove is the problem
of small market newspapers, many of which can no longer attract young
journalists. "Every time someone leaves, it's a crisis," said Don Huebscher,
of The Leader Telegraph of Eau Claire, Wis., circulation 29,700. "We used to
get 70 or 80 people for each job opening. Now we get two or three." With out
writers, the editors of small papers could soon be out of work too.
[SOURCE: New York Times (C9), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/yr/mo/day/news/financial/newspaper-future-grove.htm)

A LOOK BACK IN WONDER
Issue: Journalism
Mike Mills, telecommunications reporter for the Washington Post, wrote this
retrospective article as he leaves the newsroom to join Aether Technologies.
He recalls the head-spinning changes that he has covered in the industry in
the past five years -- the continuing fights between the Bell companies and
the long distance carriers, the rise of the Internet, competition in
wireless communications, the development of competition in the local
telephone markets, and blockbuster mergers. "I'll never forget my years at
The Post covering the communications revolution, and writing this occasional
column has been one of the best parts of the job. I'll miss it all beyond
words." [Job well done, Mike. And, oh yes, and you'll really need to read
Headlines now!]
[SOURCE: Washington Post (WB25), AUTHOR: Mike Mills, millsm( at )washpost.com]
(http://www.washingtonpost.com/wp-srv/digest/daily/april99/cyber19.htm)

SATELLITE

INTERNATIONAL SATELLITE REFORM, USER PERSPECTIVE
Communications Subcommittee hearing scheduled for Thursday, April 22, at
2:00 p.m. in room 253 of the Russell Senate Office Building. Senator Conrad
Burns (R-MT), Chairman of the Subcommittee, will preside. Witnesses to be
announced.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/schedule.htm)

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