May 1999

TELEPHONY
New Fee Added to Phone Bill (WP)
FCC Proposing Phone-Number Changes To Prevent a
Shortage of Area Codes (WSJ)

INTERNET
Coming Era of High-Speed Net Access Is Here and Now
on College Campuses (CyberTimes)
E-Mail Becomes Snail Mail (CyberTimes)

E-COMMERCE
Hearing Examines Problems of Small Businesses on Net (SJ Merc)
Universal Music and BMG Form Team for Web Venture (NYT)

MERGERS
Charter to Buy Yet Another Cable Firm (WSJ)

FCC
Lawmakers Offer Bill To End Most FCC Merger Reviews (SJ Merc)
McCain Criticizes FCC On Phone Deal Review (ChiTrib)
FCC Oversight Hearing (Senate)

TELEVISION
Digital Guides Vie in TV Power Play (WSJ)

PRIVACY
Privacy and Ride-Alongs (NYT)
Lawmakers Raise Questions About International Spy Network
(CyberTimes)
US-Europe Privacy Talks Are Sputtering (NYT)

INTERNATIONAL
Allies Target Yugoslav Phones, Computers (WP)
Eutelsat Cuts Off Serbian TV Signals (WSJ)
U.S., Canada Resolve Dispute (WP)
TV Azteca Chief Turns Over Wireless Unit and Lifts
Its Ambitions (NYT)

TELEPHONY

NEW FEE ADDED TO PHONE BILL
Issue: Telephony/Competition
If they look closely, Bell Atlantic subscribers will see a new 23-cent charge
on the bills this month, a fee for "local number portability." This charge
allows customers to keep their phone numbers even if they change local phone
companies. Consumer advocates, however, say that consumers aren't quite getting
what they pay for when it comes to the more than $3 billion in new phone bill
charges since the passage of the 1996 Telecommunications Act. "We've got an
enormous mess here, and number portability is just the quintessential example
of what's gone wrong," said Gene Kimmelman, co-director of the Washington
office of Consumers Union. "You're paying for the benefits of choice -- the
problem is, you pay, but there's no one there to give you the benefits, to give
you the choice." Phone number portability is intended to help encourage
competition in local phone markets, but most consumers have yet to experience
local competition.
[SOURCE: Washington Post (E01), AUTHOR: John Schwartz]
(http://www.washingtonpost.com/wp-srv/business/feed/business927799631957.htm)

FCC PROPOSING PHONE-NUMBER CHANGES TO PREVENT A SHORTAGE OF AREA CODES
Issue: Telephone Regulation
"Unless something is done, we estimate we will run out of area codes and
phone numbers within 10 years," says an executive of Lockheed Martin, the
company that doles out phone numbers for the Federal Communications
Commission. At the FCC's opening meeting today, Commissioners will propose
requiring phone companies to return unused numbers and, instead of giving
the companies blocks of 10,000 numbers at a time, doling them out 1,000 at a
time. The increase in demand for second phones, cell phones and pagers are
just part of the problem. With new competitors entering markets since
deregulation, every request for additional numbers means another block of
10,000 numbers is tied up -- whether or not they could use them all or not.
Lockheed Martin estimates that only 5% of the numbers allocated are in use.
[SOURCE: Wall Street Journal (B10), AUTHOR: Kathy Chen]
(http://wsj.com/)

INTERNET

E-MAIL BECOMES SNAIL MAIL
Issue: Mail
A Web service called Lettepost.com lets people send "emails' to friends and
family who don't have email. You can go to the site at www.letterpost.com and
type in a message that will be printed out and sent, via snail mail, to its
destination. The service was developed by a computer scientist on sabbatical
from Trinity College in Dublin. "I came over here and was exposed to the whole
Silicon Valley thing, with 75 to 80 percent of people with Internet access,"
Dr. O'Mahony said. "In other parts of the U.S. and in lots of European and
Asian countries, this would be more like 20 percent. A substantial number of
people, like my parents' generation, will never get e-mail."
[SOURCE: New York Times (D8), AUTHOR: Hubert Herring]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/27post.html)

COMING ERA OF HIGH-SPEED NET ACCESS IS HERE AND NOW ON COLLEGE CAMPUSES
Issue: Broadband
Many college students are currently enjoying technology of the future, with
high-speed Internet connections 24 hours a day if they live on campus. Many
students report that ease and speed of their Internet connections has resulted
in near dependence on the Web for information and communication. "If I were to
suddenly lose my Internet connection, I probably would not be able to
communicate," said Noemi Millan, a freshman at Princeton University. Students
shop, do research, chat, get the news, and find jobs online. "When some
students at Georgetown University were asked recently whether they would go to
conventional newspaper to search the classified advertisements, a few looked at
one another as if they had never heard of the concept," reports Guernsey. With
the information and services now available online, students find fewer reasons
to turn to traditional media.
[SOURCE: New York Times (D5), AUTHOR: Lisa Guernsey]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/27post.html)

E-COMMERCE

HEARING EXAMINES PROBLEMS OF SMALL BUSINESSES ON NET
Issue: E-Commerce
The House Small Business Committee held a hearing on the effects of e-commerce
on small businesses yesterday. Rep Jim Talent (R-MO) said that less than 2% of
business with less than 100 employees operate Web sites, while about 40% of
companies with over 1,000 employees operate online. Small business Web sites
need to be well-designed and well-advertised, said New England seafood
retailer Brian Hanson. Going online, Hanson discovered that his business
"lacked technical skills, large capital for equipment and advertising and
the time necessary to manage it all." Rep. Talent is concerned that "small
business face the potential of losing market share to companies that are
staying ahead of this new technological wave."
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/069421.htm)

UNIVERSAL MUSIC AND BMG FORM TEAM FOR WEB VENTURE
Issue: E-commerce
Universal Music, the largest record company, and BMG Entertainment, the
music division of Bertelsmann AG, will team with AT&T and Matsushita to
create technology to sell, store and distribute music over the Internet.
Universal and BMG have already announced similar deals with other companies.
Major players in the music business seem so desperate to get a foothold in
electronic commerce that they will pursue multiple solutions simultaneously,
forging alliances with competitors and competing technology companies.
[SOURCE: New York Times (C2), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/27music.html)

MERGERS

CHARTER TO BUY YET ANOTHER CABLE FIRM
Issue: Mergers/Cable
Paul Allen's Charter Communications will buy Denver's Fanch Communications
for just over $2 billion. Charter's recent acquisitions firmly establish it
as the nation's 4th-largest cable firm with 5.5 million subscribers. Charter
also confirmed that it was paying ~$2 billion in cash and stock and assuming
$1.6 billion in debt for Falcon Cable TV of Los Angeles.
[SOURCE: Wall Street Journal (A3), AUTHOR: Leslie Cauley]
(http://wsj.com/)
See also:
CABLE DEALS FOLLOW TREND TOWARD REGIONALIZATION
[SOURCE: USA Today (B1), AUTHOR: David Lieberman]
(http://www.usatoday.com)

FCC

LAWMAKERS OFFER BILL TO END MOST FCC MERGER REVIEWS
Issue: Mergers/FCC
Commerce Committee Chairman John McCain (R-AZ) and Judiciary Committee Chairman
Orrin Hatch (R-UT) have proposed legislation to eliminate Federal
Communications Commission authority to review most mergers. The bill would only
allow the FCC to review proposed communications deals if antitrust
regulators declined to review a transaction. The senators introduced the bill
after some companies complained about the length of time that it took the
commission to approve their deals.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/484905l.htm)

MCCAIN CRITICIZES FCC ON PHONE DEAL REVIEW
Issue: Mergers/FCC
Sen John McCain (R-AZ) tongue-lashed FCC Commissioners yesterday about
comments made by a FCC staffer about the proposed SBC-Ameritech merger.
Thomas Krattenmaker, a telecommunications law expert who is reviewing the
merger, said that the deal appeared to fail the public interest test and
would be subject to certain conditions if it were to win approval. "There
was a $4 billion loss in market capitalization as a result of his
statement," said Sen McCain, who is also a candidate for the Republican
presidential nomination. "Whether or not a penny was lost, we constitute you
commissioners to make these decisions, not the staff people. My staff don't
make decisions for me, nor do they voice what my decision will be."
[SOURCE: Chicago Tribune (Sec3, p.3), AUTHOR: Frank James]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905270229,00.html)

FCC OVERSIGHT HEARING
Issue: FCC
Links to testimony of FCC Commissioners at yesterday's Senate Commerce
Committee hearing. Also includes statement form Committee Chairman John
McCain (R-AZ): Last year Robert Novak called the Federal Communications
Commission "the second most powerful bureaucratic entity after the Federal
Reserve Board," and he's right. The FCC is responsible for implementing
Congressional policy in regulating the telecommunications industry, which
accounts for over one-sixth of our country=s Gross National Product and is
the fastest-growing sector of our country=s economy....As big an impact as
the FCC's actions have on the industry and on the economy, however, it's the
impact of the FCC's actions on the *consumer* that should be our focus
today....In my view a majority of this Commission places too little
confidence in competition and way too much in regulation. It tends to ignore
the demands of making orderly, efficient, and fair decisions on the matters
before it, preferring to pursue issues that are within neither their
expertise nor their jurisdiction. It has shown a distressing tendency toward
inconsistent and ad hoc decisionmaking, and toward picking and choosing
which parts of the law it will choose to follow....Ted Turner has an
excellent philosophy on decisionmaking that should apply to the FCC --
"lead, follow, or get out of the way." To the extent the Committee finds
that the Commission is unable to lead or unwilling to follow, it's our
responsibility to make sure it gets out of the way.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/hearings/hearings.htm)

TELEVISION

DIGITAL GUIDES VIE IN TV POWER PLAY
Issue: Television
Television set makers, cable system operators, and satellite programming
providers are at war to be your gateway to television. With the ever-growing
list of available channels and services, each of the players wants to
control the screen you see when you first turn on your TV. Like Internet
portals, onscreen TV programming screens with be the gateways to consumers'
television experience. A major player is Gemstar, the creator of VCR plus
that allows viewers to program their VCRs using numbers published in
television guides. Currently, Gemstar pays broadcasters to transmit the
Guide Plus viewing guide; cable operators are forced to include the data as
part of "must carry" regulations. Some are concerned that Gemstar's growing
power will put it at odds with set manufacturers as Microsoft's power put it
a cross purposes with PC makers.
[SOURCE: Wall Street Journal (B1), AUTHOR: Evan Ramstad]
(http://wsj.com/)

PRIVACY

PRIVACY AND RIDE-ALONGS
Issue: Journalism
[Editorial] Support for the Supreme Court's ruling barring police from
allowing reporters and photographers to accompany police on raids. "The
Court's interest in privacy is healthy. But its decision could have perverse
consequences if police departments misread its narrow holding as a broad
license to fence off large areas of police activity from journalistic
observation and reporting. In future cases the Court should make clear that
its ruling applies only to residences, not to surrounding grounds or public
areas."
[SOURCE: New York Times (A30), AUTHOR: NYT Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/27thu4.html)

LAWMAKERS RAISE QUESTIONS ABOUT INTERNATIONAL SPY NETWORK
Issue: Privacy
As part of an amendment to the annual intelligence budget bill, the House
Committee on Intelligence requested that the National Security Agency and
the Central Intelligence Agency provide a detailed report to Congress
explaining what legal standards they use to monitor the conversations,
transmissions and activities of American citizens. There is growing concern
in the United States, Europe and Australia about Echelon, a computer system
that can monitor millions of e-mail, fax, telex and phone messages. The
system, originally set up as an international spy network, includes the
security agencies of the United States, Britain,
Canada, Australia and New Zealand. U.S. Lawmakers are concerned that it
could be used to eavesdrop on American citizens. The finished report will
outline the legal bases and other criteria used by United States
intelligence agencies when assessing potential wiretap targets. It will be
submitted to the House and made available to the public. A European
Parliament report on the subject released May 10, "Development of
Surveillance Technology and Risk of Abuse of Economic Information"
(http://www.iptvreports.mcmail.com/stoa_cover.htm) provides a detailed
account of Echelon and other intelligence monitoring systems.
[SOURCE: New York Times Cyber Times, AUTHOR: Niall McKay]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/27network.html)

US-EUROPE PRIVACY TALKS ARE SPUTTERING
Issue: Privacy
Led by the Commerce Department, US officials have been negotiating with
European Union officials to reach a compromise on privacy issues. The EU
passed a directive last year that prohibits companies from transmitting
personal info to countries that do not offer "adequate" privacy protection.
US officials have been trying EU officials to accept a system under which
American companies would self-regulate a code of good behavior. Both sides
we're hoping for an agreement by June 21 when President Clinton will meet
with European leaders, but if a deal isn't in place after a meeting this
Friday, chances seem low something will be in place by 6/21.
[SOURCE: New York Times (C1), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/27europe-us-priv
acy.html)

INTERNATIONAL

ALLIES TARGET YUGOSLAV PHONES, COMPUTERS
Issue: Telephony/International
Many citizens in Belgrade and other major Yugoslav cities have been without
water and electricity for the past few days. It is likely that they will soon
be without telephone or Internet access as well. NATO commanders have finally
received an "ok" to move forward with attacks on Yugoslavia's telephone and
computer networks. The attacks are part of an effort to cut communication
between the government in Belgrade and its troops in Kosovo. "The plan is to
cut off the main telephone system, drive their computer systems crazy and make
sure the Serbs can only use cellular phones that are most vulnerable to
eavesdropping by satellite," a senior NATO official. Until this point, Yogoslav
communications have been virtually surveillance resistant.
[SOURCE: Washington Post (A1), AUTHOR: William Drozdiak]
(http://www.washingtonpost.com/wp-srv/inatl/longterm/balkans/stories/brusse
ls052799.htm)

EUTELSAT CUTS OFF SERBIAN TV SIGNALS
Issue: Journalism/Censorship
Claiming it was "inciting racial hatred," a European satellite consortium
cut off Serbian Radio Television's (RTS) signal in a move that will deny
many Western media outlets of one of their main sources of video of the
conflict. NATO has made RTS's studios and broadcast facilities bombing
targets since April 23 and has been working just as long to cease the
satellite signal. Ten civilians have lost their lives in attacks on Belgrade
television facilities.
[SOURCE: Wall Street Journal (A21), AUTHOR: Kevin Delaney]
(http://wsj.com/)

U.S., CANADA RESOLVE DISPUTE
Issue: Magazines
The world's two largest trading partners, the US and Canada, have finally
reached an agreement in a long trade dispute over magazines and advertising.
The Canadian government had been pushing legislation that would prohibit
foreign magazines from carrying advertisements aimed at Canadians. The US, in
response to the proposed limits, threatened to impose tariffs on a variety of
Canadian products if the ad restrictions were enacted. Under the compromise
reached today, U.S. publishers will be allowed to publish Canadian editions of
their magazines as long as less than 18% of the advertising content is from
Canadian advertisers. Canada has long been concerned that American magazines
are steeling ad revenue from Canadian publications by offering lower
advertising rates.
[SOURCE: Washington Post (E3), AUTHOR: Steven Pearlstien]
(http://www.washingtonpost.com/wpsrv/business/feed/business927799638067.htm)
See also:
US-CANADA AGREEMENT ON MAGAZINES
[SOURCE: New York Times (C5), AUTHOR: Kalyani Vittala]
(http://www.nytimes.com/yr/mo/day/news/financial/canada-magazines.html)
PACT LETS US PUBLISHERS WHOLLY OWN CANDIAN MAGAZINES, AVERTING BATTLE
[SOURCE: Wall Street Journal (B5), AUTHOR: Julian Beltrame]
(http://wsj.com/)

TV AZTECA CHIEF TURNS OVER WIRELESS UNIT AND LIFTS ITS AMBITIONS
Issue: Wireless
Ricardo Salinas Pliego, chairman of the second-largest television network in
Mexico, will turn over Unefon, his fledgling wireless telephone service, to
a joint venture formed by his network, TV Arteca, and other investors. The
new wireless company will provide low-cost local telephone service,
television programming and Internet access. Mr. Salinas is facing a June 15
deadline to pay the Mexican Government for frequencies won in bidding last
year -- investors in the TV network have ben worried that Mr. Salinas would
use the network to save the wireless company.
[SOURCE: New York Times (C5), AUTHOR: Julia Preston]
(http://www.nytimes.com/yr/mo/day/news/financial/mexico-phone.html)

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

ERATE
Republicans Renew Attack On E-Rate (NYT)

JOURNALISM
Police Violate Privacy in Home Raids With Journalists (NYT)
Undermining the Latin Press (NYT)

BROADBAND/CABLE
The Battle for Broadband Access (Wired News)
Fears Rise of a 'Digital Divide'
How High's the Sky?
Top MSOs Own 90% of Subs (B&C)

PRIVACY/ENCRYPTION
State Bill Extends Arm of Law on Net Records (SJ Merc)
Slip Of The Tongue Lightens Up Encryption Hearing (NYT)

MERGERS
American-Style Capitalism Wins One in Italy (NYT)

NONPROFITS/ANTITRUST
High Court Lets FTC Police Nonprofits

EMPLOYMENT
'90s Unkind to Workers Study: Lower Wages,
Less Job Security Downside to `New
Economy' (SJ Merc)

INTERNATIONAL
Technology Intrudes on Dogma in Land of the Taliban

ERATE

REPUBLICANS RENEW ATTACK ON E-RATE
Issue: E-Rate
As the Federal Communication Commission (FCC) prepares to set this year's
E-rate -- funding for school and library Internet connections -- a partisan
battle is being waged over the fund which Republicans call the "Gore tax."
Last week, the Republican National Committee sent an email asking supporters to
contact the FCC with their opposition to the E-rate. The GOP insists that FCC
Chairman William Kennard's plan to increase the funding to $2.25 billion this
year will force telephone companies to raise customers' fees in order to
finance the universal service program. Democrats from rural states are pushing
the FCC to subsidize high-speed Internet access in rural areas to ensure the
reality of a truly "universal service." Senators say small businesses and farms
in rural communities are lacking the Internet access they need. "We are
determined not to end up with a country of haves and have nots with respect to
advanced telecommunications," said Sen Byron Dorgan (D-SD). Several Senators
wrote a letter to Chairman Kennard asking the FCC to support access to
technology in rural areas. The request includes "subsidizing high-speed
Internet and data services via satellite, raising the technical requirements
for phone lines, and encourage cellular companies to serve remote areas and
Indian reservations."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing ]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/25capital.html)

JOURNALISM

POLICE VIOLATE PRIVACY IN HOME RAIDS WITH JOURNALISTS
Issue: Journalism
The Supreme Court ruled unanimously yesterday that the police practice of
bringing journalists and photographers into people's homes during searches
or arrests violates "the right of residential privacy at the core of the
Fourth Amendment." "Surely the possibility of good public relations for the
police is simply not enough, standing alone, to justify the ride-along
intrusion into a private home," Chief Justice William Rehnquist wrote for
the Court. The ruling does not affect report on police activity in public
places and the Court did not address the liability of news organizations
themselves.
[SOURCE: New York Times (A25), AUTHOR: Linda Greenhouse]
(http://www.nytimes.com/library/politics/scotus/articles/052599police-media.
html)
See also:
POLICE CAN BE SUED FOR LETTING MEDIA SEE RAIDS
[SOURCE: Washington Post (A8), AUTHOR: Joan Biskupic and Howard Kurtz]
MEDIA 'RIDE-ALONGS' CURBED
Issue: Privacy
The Supreme Court ruled unanimously Monday that police violate the privacy
rights of homeowners when they allow media to accompany them on searches and
arrests inside people's homes. "The need for accurate reporting on police
issues in general bears no direct relation to the constitutional justification
for the police intrusion in to a home," wrote Chief Justice William Rehnquist.
The National Association of Criminal Defense Lawyers represented a couple that
sued after government agents brought a CNN crew onto their property while
conducting a raid. Legal experts say media "ride-alongs" with police will now
stop at the front door of homes. Richard Cordray, a lawyer for the police
sued in the case, says media will still be able to ride-along with police and
accompany them in any public spaces. The ruling demonstrates that the Court
"saw no public value in giving the media access to such searches," said Jane
Kirtley of the Reporters Committee for Freedom of the Press. Joshua Dratel of
the National Association of Criminal Defense Lawyers said the ruling meant "the
government is not allowed to make a display of you."
[SOURCE: USA TODAY (A1), AUTHOR: Tony Mauro]
(http://www.usatoday.com/)

UNDERMINING THE LATIN PRESS
Issue: Journalism
[Editorial] The Clinton Administration seems to be backing an Organization
of American States declaration that would give governments license for
further restrictions on Latin America's besieged journalists. The
declaration is a retreat from previous strong statements on press freedoms
signed by hemisphere governments.It would allow some forms of prepublication
censorship allows for freedom of the press to be limited "under domestic
law." Such laws in some countries, however, make it illegal to show contempt
for public officials and then are used to jail journalists who publish
stories about corruption -- even when they are true.
[SOURCE: New York Times (A30), AUTHOR: NYT Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/25tue3.html)

BROADBAND/CABLE

THE BATTLE FOR BROADBAND ACCESS
Issue: Broadband/Internet Access
MCI WorldCom, America Online, and other Internet companies urged the FCC
yesterday to bar cable companies from striking exclusive deals on new
high-speed services. The companies say consumers will end up having to pay
twice if they chose to use their services. AT&T, for example, requires
customers of high-speed cable Internet access to purchase the services of
AtHome, a cable-owned provider controlled by AT&T, for a single price. Cable
Internet customers may use AOL or other ISPs, but must still pay for AtHome.
Two-day talks starting Monday are an"informal, educational" session on the
convergence of the cable and Internet industries, attendees said. Under
current law and FCC rules, phone companies offering high- or low-speed
Internet access must offer customers a choice of Internet service providers.
But the same rules do not apply to cable operators.
[SOURCE: Wired News, AUTHOR: Reuters]
(http://www.wired.com/news/news/politics/story/19858.html)

FEARS RISE OF A 'DIGITAL DIVIDE'
Issue: Convergence
AT&T predicts that the days of convergence -- when the phone, the TV and the
personal computer will all be fed by one cable TV wire into American's homes --
are near. But consumer organizations fear that steep costs for adapting the
current networks could translate into "gee-whiz services at jaw-dropping
prices," leaving many consumers unable to afford the new services. AT&T says
that the future services provided by one single company would reduce costs for
consumers. In Alexandria (VA), cable operator Jones Communications, which sells
combined cable TV and local phone services, has already undercut the prices of
the local phone monopoly by 10 percent. But Jones and Comcast, which acquired
Jones in April, are only offering services in apartment buildings where
multiple customers can be acquired at a lower cost. "Wary of making
predictions, Comcast won't say when its bundled services will be universally
available throughout the Washington area." AT&T is also hesitant about saying
when it will actually market its bundled services. Critics say "it could cost a
bundle to get a bundle" and that the new services could create a "digital
divide" between those who can afford them and those who cannot.
[SOURCE: Washington Post (E1), AUTHOR: Paul Farhi]
(http://washingtonpost.com/wp-srv/WPlate/1999-05/25/069l-052599-idx.html)

HOW HIGH'S THE SKY?
Issue: Cable Mergers and Acquisitions (M&As)
B&C Deputy Editor John M. Higgins interviews Morgan Stanley Dean Witter's
Richard Bilotti, Deutsch Bank Securities' Doug Shapiro, and Nationsbank
Montgomery Securities' John Tinker about the high prices being paid for the
M&As in spite of negative buyer cash-flows. Whether companies are buying in a
panic or simply making "land grabs," the analysts agree that companies are
losing money in the short-term, they are executing products slowly, and are not
fulfilling consumer demands for high-speed Internet access as promised.
Though consumers have been responsive to digital cable sales and are anxious to
receive larger amounts of data via high-speed Internet systems, the analysts
predicts that data technology such as VOD [video on demand] will take a long
time to develop, one-and-half to five years.
[SOURCE: Broadcasting&Cable (p.46), AUTHOR: B&C Deputy Editor John M. Higgins]
(http://www.broadcastingcable.com/)

TOP MSOs OWN 90% OF SUBS
Issue: Cable
Broadcasting & Cable ranks the top 25 multiple system operators (MSOs) by total
number of subscribers. The top five on the list are AT&T Broadband (16,200,000
subscribers), Time Warner, Comcast, Cox, and Adelphia. Many MSOs that have
never expected to get on the list are now top 25 due to the huge wave of
takeovers in the cable industry. The top 25 MSOs control 60.8 million
subscribers (or about 90% of all US cable homes). New entrants into the
industry, like AT&T, are coming onto the scene with lots of cash and plans to
roll out new services. In choosing acquisitions, operators look for local sales
that will match their existing subscriber base. But some acquisitions, such as
Adelphia Communications' takeover of Century Communications and Frontier Vision
Partners, demonstrate that companies will settle for sheer mass. The
ranking of MSOs seems to not mean much more than an ego boosts for the
companies, as there is so much fluctuation. Whereas operators were selling in
1994, fearing competition from telecommunication and wireless companies, they
are now buying in a hurry in an attempt to control multiple services. Other
MSOs feel they can beef up their revenues by adding digital, high-speed
Internet, and telephone services.
[SOURCE: Broadcasting&Cable (p. 34), AUTHOR: John M. Higgins]
(http://www.broadcastingcable.com/)

PRIVACY/ENCRYPTION

BILL EXTENDS ARM OF LAW ON NET RECORDS
Issue: Privacy
The California State Senate has unanimously approved a bill that will make it
easier for police to obtain electronic information from Internet and email
service providers. The legislation requires most out-of-state ISPs and email
providers to respond to California-issued search warrants. The bill also
requires California providers to honor out-of-state warrants. While the
State's attorney's office says that the rules could be a model to aid other
states in criminal investigations, some critics fear that it give law
enforcement officials too much authority. "There's a problem of jurisdiction.
How a superior court judge in California could have the power to issue a search
warrant for property in another state is beyond me," said Steve Meinrath, a
lobbyist for the California Attorneys for Criminal Justice. "That's why we
have a federal court."
[SOURCE: San Jose Mercury News, AUTHOR: Mary Anne Ostrom]
(http://www.mercurycenter.com/svtech/news/indepth/docs/senate052599.htm)

SLIP OF THE TONGUE LIGHTENS UP ENCRYPTION HEARING
Issue: Encryption
"Never underestimate the stupidity of some of the people we have to deal with,"
said William A. Reinsch, Under Secretary of Commerce for the Bureau of Export
Administration, while being asked about the likelihood of criminals using
technology being pushed by the Clinton Administration. Under Secretary
Reinsch received a
chuckle as he was testifying before the House International Relations
subcommittee in defense of the Administration's encryption policy. The
Administration is justifying the loosening of export controls on strong
encryption by counting on technology to guarantee law enforcement easy
access to criminals' communication.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/25capital.html)

MERGERS

AMERICAN-STYLE CAPITALISM WINS ONE IN ITALY
Issue: Mergers
[Editorial] Olivetti won Telecom Italia with an American-style leveraged
buyout. The question now is will the victor be able to operate the telephone
giant. The big losers so far are Italian investors with "savings shares" of
TI -- they do not get a vote in the merger and the value of their shares has
dipped since the merger. Moving from a monopoly, TI was slated to cut back
jobs -- many more will be lost now and if the Italian government resists
layoffs, that could hurt Olivetti. "Roberto Colaninno, Olivetti's chief
executive, may go down in European history as the man who used
American-style takeover tactics to gain control of a company that he then
improved to everyone's benefit. But if things do not work out, there is
likely to be a backlash against the aggressive tactics of such takeovers."
[SOURCE: New York Times (A30), AUTHOR: Floyd Norris]
(http://www.nytimes.com/yr/mo/day/editorial/25tue4.html)
See also:
DEUTSCHE TELEKOM LOST MORE THAN JUST TELECOM ITALIA
[SOURCE: New York Times (C4), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/yr/mo/day/news/financial/olivetti-deutsche-teleko...)
TELECOM-OLIVETTI MATCH REDRAWS MERGER MAP
[SOURCE: Wall Street Journal (A18), AUTHOR: Gautam Naik and William Boston]
(http://www.wsj.com/)

NONPROFITS/ANTITRUST

HIGH COURT LETS FTC POLICE NONPROFITS
Issue: Nonprofits/Antitrust
The Supreme Court ruled yesterday that the Federal Trade Commission acted
within its authority when it sued the California Dental Association in 1993
claiming that the CDA's extensive disclosure requirements did not allow members
to advertise discounts. The Supreme Court handed the FTC a mandate to police
nonprofit associations, but also said that FTC examinations warranted further
review. Experts were displeased with these rulings saying "they will slow down
efforts by courts and regulators to forgo a rigorous analysis of market effects
before concluding that a company or association has violated antitrust law."
The FTC was also displeased as it wanted to apply a "quick-look" standard to
reviewing antitrust cases -- but can claim victory in the end. "This is a vital
element of the FTC now," said William Kovaci, a law professor at George
Washington University. "Had the court ruled against them on this, it would have
destroyed the most important non-merger related work the agency does."
[SOURCE: Washington Post (p.E3), AUTHOR: David Segal]
(http://washingtonpost.com/wp-srv/WPlate/1999-05/25/058l-052599-idx.html)

EMPLOYMENT

'90S UNKIND TO WORKERS STUDY: LOWER WAGES, LESS JOB SECURITY DOWNSIDE TO `NEW
ECONOMY'
Issue: Employment
While the fortunes of high-tech entrepreneurs often make the headlines, there
is little news about the financial situation of the average worker in the heart
of the Silicon Valley. According to a report to be released today, workers in
California are taking home less in real wages than they were at the beginning
of the 90s. Written by the San Jose-based Working Partnerships USA and the
Economic Policy Institute in Washington (DC), the report says that nearly 40%
of the jobs to be created by 2006 are in occupations that pay less that $10 an
hour. "Work in California's New Economy: Walking the Lifelong Tightrope"
highlights the fact that more and more companies are depending on temporary
workers. "These flexible arrangements make workers more vulnerable as companies
are able to shift supplier and sub-contracting relationships quickly and
easily, depending on market changes or managerial tactics, with little
responsibility to the workers affected," the report says.
[SOURCE: San Jose Mercury News, AUTHOR: Jonathan Rabinovitz]
(http://www.mercurycenter.com/svtech/news/indepth/docs/econ052599.htm)

INTERNATIONAL

TECHNOLOGY INTRUDES ON DOGMA IN LAND OF THE TALIBAN
Issue: Technology
Afghanistan's right-wing Taliban has finally conceded to allow technology like
laptops and cellular phones in its borders after realizing that they have as
much to gain as to fear from technology. The Taliban has restricted the use and
possession of television sets, tape cassettes and cameras since it seized
government control in 1996. After years of warfare, the county is in desperate
need for technology yet years of indoctrination against Western modernity will
be difficult to reconcile. Communications Ministry officials are now "trying to
find a way to log on without losing faith."
[SOURCE: Washington Post (A10), AUTHOR: Pamela Constable]
(http://washingtonpost.com/wp-srv/WPlate/1999-05/25/107l-052599-idx.html)

--------------------------------------------------------------
Headlines says, "So long" today to intern Alicia Kemmitt who's off to find
Tony's heart in San Francisco. (Yes, she knows...this summer could be the
coldest winter...)

INTERNET
Bliley Introduces Bill to Block "Toll Booths" on The Information
Superhighway (House)
Content Vs. Commerce Online (WP)
FCC Seeks Good Way to Separate Cable, Internet (SJ Merc)
World of Choices to Plug In to the Net (NYT)
Writing Their Own Menus (WP)

DEMOCRACY AND TECHNOLOGY
Internet Political Donations May Qualify for Matching Funds (NYT)
Mobilizing Online for Gun Control (NYT)
Citizens' Electronic Inquiries Get Governments' Attention (NYT)
Company Proceeds with Government Search Service (NYT)

TELEVISION
Taking A Critical Look at TV (WP)
Study Finds TV Trims Fiji Girls' Body Image and Eating Habits (NYT)
NBC Is Considering Quitting The NAB (WSJ)
CBC Shelves Fall Mob Series As Too Violent (WSJ)
Citizens' Electronic Inquiries Get Governments' Attention (NYT)
DTV Receiver Compatibility with Cable Television Service (FCC)

EDTECH
Helping Children to Navigate Their World (NYT)

WIRELESS TELEPHONY
A Race to the Wireless (NYT)
Report: Wiretaps On Cell Phones, Pagers, E-Mail Tripled Last Year (USA)

INTERNET

BLILEY INTRODUCES BILL TO BLOCK "TOLL BOOTHS" ON THE INFORMATION SUPERHIGHWAY
Issue: Internet/Legislation
Americans will continue to have full access to information on the Internet,
such as stock quotes used for on-line trading, under a bipartisan bill
introduced by Chairman Tom Bliley (R-VA). H.R. 1858, The Consumer and
Investor Access To Information Act of 1999, provides new protection to
publishers of electronic databases, while ensuring that public access to
information will not be limited by publishers' asserting a proprietary right
over facts and information, which historically have been part of the public
domain. The bill also provides database publishers protections against
database theft of their databases. The bill's anti-theft protections will
also protect institutions like the stock exchanges from hackers and pirates
seeking to undermine the integrity of the data they disseminate to the public.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/47b306c9f0a69f47852567050
069a969/47bc21059822e338852567760076feb4?OpenDocument)

CONTENT VS. COMMERCE ONLINE
Issue: Advertising
Walker brings forth for today's discussion the growing trend in the world of
online publishing to go commercial. She cites the recent friction between two
top online publications, Slate and Web "zine" Salon, and states her concern for
publications that are revamping their Web sites and placing more ads in efforts
to attract more commercial revenue. They are "building a profitable business
around serious online commentary," in efforts to survive the competition she
says. "It's all part of an intense mating dance going on all across the Web
between online content and commerce. The sad fact is that many serious content
sites are drawing in less traffic than corporate sites that amount to little
more than marketing brochures." Ironically, Slate who is a traditional rival of
Salon, is one of the biggest advertisers on Salon's Web site, showing that the
drive to sell can result in strange bedfellows.
[SOURCE: Washington Post (E1), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/20/086l-052099-idx.html)

FCC SEEKS GOOD WAY TO SEPARATE CABLE, INTERNET
Issue: Broadband
On Wednesday, Federal Communications Commission Chairman William Kennard said
the commission has the right to impose regulations on cable companies offering
Internet service, but added that he has yet to hear an effective proposal
prevent discrimination by operators of cable broadband services. AOL Chairman
Steve Case, who also spoke at the congressional briefing, argued for a law that
prohibits cable companies from bundling content with high-speed Internet
connections for consumers. Many Internet services providers and consumer groups
are concerned that cable companies will soon dominate the high-speed lines into
American households since they are not subject to the same regulations as are
telephone companies that offer Internet access. "We have a disparity -- that's
clear," agrees Chairman Kennard. "The more difficult question, in my view, is
if we assert jurisdiction what do we do?"
[SOURCE: San Jose Mercury News, AUTHOR:(Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/026102.htm)

A WORLD OF CHOICES TO PLUG IN TO THE NET
Issue: Internet Access
"Based on the correspondence we've received, and its emotional content,
choosing an I.S.P. seems to rank somewhere between selecting a long-distance
phone service and choosing a caterer for a bar mitzvah," Dr. Dawn McGatney,
a Maryland pediatrician and Webmaster, wrote. Dr. McGatney runs a site
called Compleat Guide to an I.S.P. You'll Enjoy Using
(dogwolf.seagull.net/isp.html). "But we hear from many folks who are now on
their fifth or higher I.S.P.," she added. "Once you switch one to two times,
it's obviously easier. There is a bit of fear of the unknown here."
According to the Strategis Group, a Washington-based research company that
studies patterns in telecommunications use, nealy 37% of home Internet users
have changed their ISP since January. There are ~4,500 ISPs available across
the country, this URL
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20ispp-side.htm
l) compares the top eight providers (measured by subscribers). A related
article
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20hint.html)
highlights seven questions a customer should ask when shopping for a new
provider.
[SOURCE: New York Times (D1), AUTHOR: Tina Kelley]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20ispp.html)

WRITING THEIR OWN MENUS
Issue: Broadband
America Online hosted a full-day session yesterday in an effort to tame wild
conversation and "gossip about what the world's largest online service will do
next" with broadband technology. Analysts have been wondering if AOL would be
late in offering high-speed Internet services, especially after its failure to
be included in AT&T's deal to purchase MediaOne Group., a cable company. AOL
spokeswoman Ann Brackbill, eased some concerns with the disclosure of AOLs 5.0,
"the newest version of the online service's access software" to be out later
this year. The AT&T-MediaOne deal, however, was unmentioned. Ulric Weil, an
analyst with investment bank Friedman, Billings, Ramsey Group Inc. in Arlington
(VA), said they "downplayed the need for broadband altogether." In the author's
words, they were "consistently referring to it as an 'add-on' while touting
their plans to offer another type of high-speed access: digital subscriber line
service, or DSL."
[SOURCE: Washington Post (E1), AUTHOR: Shannon Henry]
(http://search.washingtonpost.com/wp-srv/WPlate/1999-05/20/023l-052099-idx.h
tml)

DEMOCRACY AND TECHNOLOGY

INTERNET POLITICAL DONATIONS MAY QUALIFY FOR MATCHING FUNDS
Issue: Internet & Politics/Campaign Finance
The Federal Election Commission is expected to change rules and make credit
card donations to campaigns eligible for Federal matching funds. Most 2000
Presidential candidates have Web sites that allow credit card donations. The
first $250 of each individual contribution to a Presidential candidate is
matched with taxpayers' money as long as the candidates spend $40 million or
less in the primaries. Some FEC officials had been concerned that credit
card donations do not have the same level of documentation or security as
checks, but these reservations are giving way to a desire to encourage
Internet political activity. "2000 will be a groundbreaking year for
Internet campaigning," said Steve Forbes' press secretary. "The Internet
will be to the 2000 election what television was to the Nixon-Kennedy
election."
[SOURCE: New York Times (A21), AUTHOR: NYT]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/20fundraising-in
ternet.html)
See also:
ONLINE CAMPAIGN DONATIONS READY TO TAKE CENTER STAGE
[SOURCE: San Jose Mercury News, AUTHOR: Jim Puzzanghera]
(http://www.mercurycenter.com/svtech/news/indepth/docs/online052099.htm)

MOBILIZING ONLINE FOR GUN CONTROL
Issue: Online Activism
Move On, a citizen's advocacy group (www.moveon.org), gathered 500,000
electronic signatures during the impeachment of President Clinton. An
ancillary campaign, We Will Remember, has received pledges of $13 million
and 700,000 volunteer hours for the 2000 political campaigns. Recently, Move
On has turned its attention to gun control and delivered hard copies of
70,000 petition signatures urging Congress to "accept its proper role in
regulating firearms." 100,000 individual email messages have been sent
through the site to senators around the nation. Move On was started, in
part, by Joan Blades and Wes Boyd -- they founded Berkely Systems which
created After Dark, the popular screen-saver program. ""I think this
discrepancy between what is going on inside the Beltway and public opinion
outside the Beltway is the key similarity with the Gun Safety First
petition. Our intention is just to allow people to become involved, become a
five-minute activist if you want to" said Ms. Blades.
[SOURCE: New York Times (D5), AUTHOR: Kate Hafner]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20move.html)

CITIZENS' ELECTRONIC INQUIRIES GET GOVERNMENTS' ATTENTION
Issue: Access to Government Info
Government officials are now receiving -- and answering -- inquires via
email. "Agencies are learning how to use this tool to answer questions and
to provide information," said Greg Woods, an Education Department official
who is chairman of the Government Information Technology Services Board,
part of Vice President Al Gore's initiative on reinventing Government. The
story provides links to many useful Web sites, but admits that the glut of
information may make some human intervention necessary. Agencies' policies
are still inconsistent and some would rather citizens call or write them
instead of using email. "The ideal Web site is to answer as many questions
as possible, so the last option is to send an e-mail which requires a person
to intervene and answer a question," said Rich Kellet, division director for
Emerging Information Technology Policies at the General Services
Administration. "e-mail is a difficult issue because of the volume and the
potential for huge volume. So agencies are still working on how to answer
those issues."
[SOURCE: New York Times (D8), AUTHOR: Rita Beamish]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20govt.html)

COMPANY PROCEEDS WITH GOVERNMENT SEARCH SERVICE
Issue: Government Information
Northern Light Technology, the company that partnered with the Department of
Commerce to offer a new fee-based government search engine, has announced that
it will continue to offer the service with, or without the government's
support. Shortly after the service, Gov.Search was launched on Monday, Commerce
Department officials decided to halt the collection of fees and review if it
conflicted with the Administration's policy of unlimited access to government
information. Northern Light is offering the service on a free trial basis for
the next two weeks. The Commerce Department spokesman Morries Goodman, says the
agency "will have to rethink our partnership," if the company begins to
institute fees after two weeks without the Administration's approval. According
to Northern Light President and CEO David Seuss, "the service will remain up.
Commerce doesn't have to be associated with this if they don't want it."
[SOURCE: CyberTimes, AUTHOR: ]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/20search.html)

TELVESION

TAKING A CRITICAL LOOK AT TV
Issue: TV Violence
High schools students at Walter Johnson High School in Bethesda recently
participated in a "media session" to discuss the Littleton (CO) tragedy and its
relationship to media violence. They also addressed general issues on violence
and sports and violence and television news. The reactions varied from
amazement to in-depth self-reflection, "Normally you might just block the
violence out because it goes on all the time. But this really made you pay
attention," said William While, 15. "It just showed you what's out there, and
how inundated we are." Sponsored by the Maryland Department of Education and
Discovery Communications, the forums provide opportunities for elementary to
high school students to critically analyze not only the content shown on
television, but their own perceptions of it. Feedback from the sessions in
Maryland will be used for nationwide forums to be presented next year.
[SOURCE: Washington Post (B2), AUTHOR: Manuel Perez-Rivas]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/20/196l-052099-idx.html)

STUDY FINDS TV TRIMS FIJI GIRLS' BODY IMAGE AND EATING HABITS
Issue: Media & Society
A new study from the American Psychiatric Association finds that eating
disorders are on the rise in Fiji where they were virtually unheard of
before. The research began one month after satellite television became
available in the region. Girls who said they watched television three or
more nights/wk in the 1998 survey were 50% more likely to describe
themselves as "too big or fat" and 30% more likely to diet than girls who
watched television less frequently, Goode reports. Before television became
available, there was little talk of dieting in Fiji where "You've gained
weight" is a traditional compliment.
[SOURCE: New York Times (A13), AUTHOR: Erica Goode]
see (http://www.nytimes.com/yr/mo/day/world/) URL below was not available
this morning
(http://www.nytimes.com/yr/mo/day/news/national/science/hth-fiji-diet.html)

NBC IS CONSIDERSINF QUITING THE NAB
Issue: Television
Indicative of the growing schism between the television networks and their
affiliate stations, NBC is considering withdrawal from the major lobbying and
trade association of local stations, the National Association of Broadcasters.
NBC does not agree with the NAB's opposition to lifting station ownership
limits. Current rules limit companies to owning a number of stations that reach
no more 35% of the nation's homes. While the network are eager to have these
restrictions lifted or erased altogether, most affiliate stations fear that
relaxed ownership rules would only give greater market share to the ABC, CBS,
NBC, and Fox. NBC claims that the desire to save costs would responsible for
any defection from the trade association.
[SOURCE: Wall Street Journal (B2), AUTHOR: John Lippman]
(http://wsj.com/)

CBS SHELVES FALL MOB SERIES AS TOO VIOLENT
Issue: Television/Content
As a result of growing concern about the role of violence in the media, CBS has
decided to cut one of the most talked about shows to debut this fall. The
program, "Falcone," is a TV version of an organized crime movie staring Al
Pacino. "It's not the right time to have people whacked in the streets of New
York."
said CBS Television President Leslie Moonves, who screened the pilot just days
after the shooting in Littleton (CO). "It just didn't feel right." The show
might still appear at a later date, according CBS, who stands to make large
profits if it became a hit. In general, crime dramas are seemingly absent from
the networks new fall lineup.
[SOURCE: Wall Street Journal (B1), AUTHOR: Kyle Pope]
(http://wsj.com/)

DTV RECEIVER COMPATABILITY WITH CABLE TELEVISION SERVICE
Issue: Digital Television/Cable
The Commission's Office of Engineering and Technology, in cooperation with
the Office of Plans and Policy, will host a roundtable to discuss technical
issues and progress towards development of standards related to
compatibility between digital television (DTV) services provided by cable
and other video distribution services and consumer electronics equipment. **
Thursday, May 20, 1999 9:30 a.m. - 12:30 p.m. (eastern) ** Available on the
FCC Internet Audio Broadcast Home Page at www.fcc.gov/realaudio. See topics
and speakers at
(http://www.fcc.gov/Bureaus/Engineering_Technology/Public_Notices/1999/pnet9
009.html).
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Engineering_Technology/Public_Notices/1999/pnet9
008.html)

EDTECH

HELPING CHILDREN TO NAVIGATE THEIR WORLD
Issue: EdTech
Building social skills through a computer? Slade's article looks at software
that provides the tools for youngsters to try out and try on a range of
responses to real-world social situations. "The computer is nonthreatening,"
said Arthur Pober, an educational psychologist and child and family
counselor who is executive director of the Entertainment Software Rating
Board. "It is not another child on the block who can physically confront
your kid. It is not a parental figure, who mandates certain conduct. It can
be neutral." Basically, the software is storytelling that allows children to
choose between two or more options. The best software includes materials for
parents, as well. "The idea is that parents can act as their children's
counselors," Dr. Pober said, "which in these sticky situations is precisely
what they are supposed to be." Examples reviewed are Roberto Joins In,
Captain Kangaroo: Life's First Lessons, and Choices, Choices: On the
Playground.
[SOURCE: New York Times (D10), AUTHOR: Margot Slade]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20libe.html)

WIRELESS TELEPHONY

A RACE TO THE WIRELESS
Issue: Wireless
A look a Psion, a British company that is a major player in the race to
provide the software for "smart phones." Symbian, a consortium that includes
Psion, Ericsson, Nokia, Motorola, Nippon Telegraph and Telephone, and Sun
Microsystems, is competing to set the standard against Microsoft's Windows
CE. "It's a market that's just developing, but it's a crucial market," said
Sean Faughnan, a technology analyst with J.P. Morgan in London. "Symbian
looks like a very credible challenger."
[SOURCE: New York Times (C1), AUTHOR: Alan Cowell]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/20palm.html)

REPORT: WIRETAPS ON CELL PHONES, PAGERS, E-MAIL TRIPLED LAST YEAR
Issue: Privacy
According to a report by the Administrative Office of the U.S. Courts, wiretaps
on cellular phones and pagers now outnumber wiretaps on conventional
telephones. The report also said that wiretaps placed by state and federal
police on cell phones, pagers, e-mail and other electronic communication
devices nearly tripled last year. Made easier by advances in technology, taps
on wireless communication have increased from 206 in 1997 to 576 in 1998. While
federal and many state laws require police to convince a judge that a wiretap
is necessary, only two requests of 1,329 were turned down last year. Critics
fear that this points to neglect by judges in their roles as overseers.
[SOURCE: USA Today (A1), AUTHOR: Richard Willing]
(http://www.usatoday.com/life/cyber/tech/ctf213.htm)

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

MEDIA & CHILDREN
TV Violence Hearing (Senate)
To Filter Or Not To Filter (CyberTimes)

UNIVERSAL SERVICE
Lower Phone Bills and Increase Internet Access (FCC)

JOURNALISM
Path From Old Media To New Becomes More Crowded (USA)
Dow Jones and Reuters Create Net Service for
Professionals (NYT)

MERGERS/ALLIANCES
Sound of F.C.C. Silence in a Big Merger (NYT)
ICC Seeks Details in Ameritech Deal (ChiTrib)
They Don't Look Like Babies Or Bells Anymore (WSJ)
Deutsch Telekom Makes Final Push (WSJ)

INTERNET
Commerce Dept. Shuts Web Site Over Fee Issue (WP)
Internet Board Asked To Slow Down Policy Vote (CyberTimes)
3 On-Line Book Retailers Cut Prices On Best Sellers (NYT)
Cable-Internet Regulation Debated (SJ Merc)

SATELLITES
Satellite Dish Out Strong Growth (USA)

MEDIA & CHILDREN

TV VIOLENCE HEARING
Issue: Television
Senator John McCain (R-AZ), Chairman of the Committee on Commerce, Science,
and Transportation, and Senator Fritz Hollings (D-SC), Ranking Democrat of
the Committee, announced the witness list for the hearing on TV violence.
Members will discuss legislation requiring the Federal Communications
Commission to create a time period when children are protected from violent
programming. Senator Hollings introduced the bill, S.876, on April 26. The
Full Committee hearing is scheduled for Tuesday, May 18, at 10:00 a.m. in
room 253 of the Russell Senate Office Building. Senator Hollings will
preside. Following is the tentative witness list. Panel I: Dr. Leonard Eron,
Professor of Psychology and Senior Research Scientist, Institute for Social
Research, University of Michigan and Mr. Arthur Taylor, President,
Muhlenberg College, Pennsylvania
Panel II: Mr. William Abbott, President, National Foundation to Improve
Television; Mr. James Hamilton, Associate Professor of Public Policy, Duke
University; and Mr. Dale Kunkel, Professor of Communication, University of
California Santa Barbara.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-62.htm)

TO FILTER OR NOT TO FILTER
Issue: Internet/Content/Regulation
The Internet Free Expression Alliance, a coalition of 13 national organizations
including the American Civil liberties Union (ACLU) and the Electronic Privacy
Information Center (ERIC), is requesting that an FCC-launched filter
information page include links to information about filters' shortcomings. The
coalition says they agree with the FCC's goal to educate parents on how best to
protect their kids, but fear that filter vendors gloss over the tendency of
filters to block out such topics as breast cancer, homosexuality, and AIDS.
This issue will likely come up on Thursday when the Senate Commerce Committee
will hold a hearing on Senator John McCain proposal that all schools and
libraries install filters before in order to receive Federal E-rate money.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/18capital.html)

UNIVERSAL SERVICE

LOWER PHONE BILLS AND INCREASE INTERNET ACCESS
Issue: Universal Service/Telephone Regulation
William Kennard, chairman of the Federal Communications Commission (FCC),
said today that consumers can reap the dual benefits of lower phone bills
and Internet access for all schools and libraries. He said this in a speech
to the National Consumers League in Washington (DC). In response to concerns
that full funding of the e-rate would boost phone bills, Chairman Kennard
said, "Your concern is one that I considered greatly in making this decision
[to recommend full funding]. And that's why along with funding the e-rate to
its cap, the FCC -- as we have done over the past two years -- is
substantially reducing other costs to America's long-distance carriers,
which they should pass along in lower rates to consumers. So even with
funding the e-rate to its cap, they will have available half a billion
dollars which can be - and should be - used to further lower long-distance
rates for American consumers." He told the National Consumers League, "Your
role is to use your unique ability to give voice to the concerns of American
consumers and tell these companies that this savings must be passed on to
the average American family, not just to the big, corporate customers."
Chairman Kennard mentioned the enormous success of the first year of the
e-rate program and the huge demand for second year funding. "By
fully-funding the e-rate program," he said, "we can meet this demand and
continue the work we've done this past year. By following this course, we
will be able to wire 528,000 additional public school classrooms to the
Internet. If we meet this high demand, we will be able to help schools that
teach 40 million American children. And only by funding at this level, will
we be able to reach the children of rural America. In fact, with this
funding, we'll be able to connect one-third of public schools throughout
rural America."
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9030.html)

JOURNALISM

PATH FROM OLD MEDIA TO NEW BECOMES MORE CROWDED
Issue: Journalism/Internet
This month Peter Arnett, the former CNN veteran reporter, announced he would
join the new Foreign TV.com -- an international video news service to be
launched next month. The service will feature interviews with world leaders
that will be available for online viewing. Arnett says moving from TV to the
Internet be not unlike what he did 20 years ago when he left the Associated
Press for a much-speculated 24-hour news channel -- CNN. For journalists who
have moved from print to online, the attraction is to tread in new territory as
well as the ability to interact with readers? When Herb Greenberg, a columnist
for online financial publication, TheStreet.com, left the San Francisco
Chronicle to go online in 1995 he, "became enchanted by the infectious and
responsive spirit of the online audience." David Talbot, chairman and founder
of Salon, a San Francisco-based online magazine, says many still think that
online journalism equals MSNBC's "gossip columnist" Matt Drudge who publishes
unconfirmed information. As more and more print and TV journalists move online,
Greenburg says it will not be long before the Internet is thought of as, "just
another medium to convey news."
[SOURCE: CyberTimes, AUTHOR: Lisa Napoli]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/18media.html)

DOW JONES AND REUTERS CREATE NET SERVICE FOR PROFESSIONALS
Issue: Internet Content/Alliances
Perennial rivals Dow Jones and Reuters are teaming up to create an
Internet-based corporate news and information service. Articles from Dow
Jones Interactive and Reuters Business Briefing will be distributed along
with archives of their own and other outlets. News will be delivered within
couple of hours of when it happens. The wire services for the two companies
will remain separate and competitive. The companies will be competing with
Dialog whose chief executive said: "What is interesting to note is that this
new service will be comprised mainly of news. As we have said many times
before, news is increasingly a commodity, available for free on numerous
Internet sites. In this context, news-only services are more and more
difficult to sell on a stand-alone basis."
[SOURCE: New York Times (C10), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18dow.html)

MERGERS

SOUND OF F.C.C. SILENCE IN A BIG MERGER
Issue: Mergers
Federal Communications Commission reaction to the $37 billion US West-Global
Crossing merger was restrained: FCC Chairman William Kennard told a meeting
of the National Consumers League in Washington, "We have to be careful in
trying to be too categorical about this -- in saying that all mergers are
bad, that we've reached a point where we can't have any more mergers. They
all have different competitive dynamics." The last time a local phone giant
and a long distance company -- SBC and AT&T -- talked about merger, then-FCC
Chairman Reed Hundt said it was "unthinkable." Talks of a merger ended
before an official announcement. Even though the players in the latest
merger aren't as big as SBC and AT&T, the Baby Bells are reading into
Chairman Kennard's words (or lack thereof) that their time has come and
widespread entry into long distance is not far away.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18phone.html)
See also:
WINNICK WEAVES A SINGLE CABLE INTO A EMPIRE
[SOURCE: New York Times (C2), AUTHOR: Andrew Pollack]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18winn.html)

ICC SEEKS DETAILS IN AMERITECH DEAL
Issue: Mergers
In their second deliberation session on the SBC-Ameritech merger, Illinois
Commerce Commissioners discussed how to open Ameritech's local phone markets
in the state to competition and how to pass savings on to consumers. In
Texas, SBC has implemented what is known as "common transport" -- which
allows competitors to connect to central offices at attractive prices.
Although Ameritech has been ordered to do so, the company still has not
achieved it. Also, when the deal was first announced, executives from the
companies spoke about cost reductions of $1.4 billion, but are now saying
the figure is $31 million.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905180241,00.html)

THEY DON'T LOOK LIKE BABIES OR BELLS ANYMORE
Issue: Telephony
Over the past decade, the Baby Bells--formed by the 1984 divestiture of
AT&T--have grown to be large and diverse telephone titans. In a recent example,
US West's has announced a merger with Global Crossing to create an underwater
cable network connecting the continents. And if Bell Atlantic and GTE;s merger
is approved, they will have access to a national long distance network. Bell
South has also been busy, investing in Latin American wireless assets, seizing
an important opportunity to expand south of the boarder. "These companies have
very different aspirations," said Analyst Brian Adamik. "They all want to be in
the long distance business, they all want to be global, but how they go about
doing it shows the difference between them." They have all, however, avoided
one strategy for expansion; none of the Baby Bells has genuinely attempted to
compete with another to provide local service.
[SOURCE: Wall Street Journal (B1), AUTHOR: Stephanie Mehta]
(http://wsj.com/)

DEUTSCH TELEKOM MAKES FINAL PUSH
Issue: Merger/Telephony
In a final effort to acquire Telecom Italia, Deutsche Telekom's CEO Ron Summer
is attempting to convince shareholder of the long-term benefits that a combined
company will reap. Olivetti's hostile takeover bid of $65 billion will expire
on Friday. Mr. Sommer only has until then to convince investors that joining
forces with the Italian phone company is an important opportunity, and perhaps
an a first step in to entering the US market.
[SOURCE: Wall Street Journal (A23), AUTHOR: William Boston]
(http://wsj.com/)

INTERNET

COMMERCE DEPT. SHUTS WEB SITE OVER FEE ISSUE
Issue: Access to Government Info
Gov.search, a new fee-based web site launched yesterday by the National
Technical Information Service (NTIS), was shut down by the Commerce Dept. soon
after public interest advocates and federal officials rasied questions as to
whether it complies with laws on public access to government documents. The Web
site allows users who pay a fee -- $15 for a one-day pass or $30 for monthly
access -- to search for documents on federal Web sites and government archives
simultaneously. At yesterday's press conference to introduce the service,
critics demonstrated concern about paying for documents that might otherwise be
free on other federal Web sites. They also expressed discontent about current
NTIS policy that charges fees for accessing federal information in its 50-year
archive, CD-Roms and other information products. They believe that more
information on court decisions and congressional voting records should be made
public on the Web. It is estimated that Gov.search will be put on hold for 24
to 48 hours until the service has been properly reviewed. "We are going to
review the fee for this subscription service to see if it is consistent with
the administration's policy on providing open and unrestricted access to public
information," Commerce Department spokesman Morrie Goodman said.
[SOURCE: Washington Post (E3), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/18/017l-051899-idx.html)
See also:
U.S. SEARCH ENGINE IS STOPPED HOURS AFTER DEBUT
[SOURCE: New York Times (C6), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18gov.html)

INTERNET BOARD ASKED TO SLOW DOWN POLICY VOTE
Issue: Internet/Regulation
Last week a group of technologists, policy annalists, and lawyers submitted a
petition to the Internet Corporation for assigned Names and Numbers (ICANN)
asking that the board takes its time in adopting new rules set by the World
Intellectual Property Organization (WIPO) to combat cybersquatting. The
petition requests that ICANN wait until the rules can be considered by ICANN's
supporting organizations that are still being formed.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/99/05/cyber/articles/18capital.html

3 ON-LINE BOOK RETAILERS CUT PRICES ON BEST SELLERS
Issue: E-Commerce
Amazon.com, Barnesandnoble.com, and Borders.com will cut the prices on
best-selling books by 50% in a move that will probably mean they will all
lose money on such sales. "There are three things that drive this business,"
said Bill Curry, a spokesman for Amazon. "It's selection, price and
convenience. And we are constantly working on all three of these things.
We've added convenience with distribution centers that will get merchandise
faster to customers. And this is an opportunity to do something with price."
A number of new companies are helping book buyers compare prices through Web
services. "People are using these comparison tools," said Kate Delhagen,
director of online retail strategies for Forrester Research. "And what
Amazon is doing is making sure that they are there. It's definitely a
defensive strategy being deployed, but it's also part of their increasing
energy to add customers to their data base."
[SOURCE: New York Times (C10), AUTHOR: Doreen Carvajal]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18book.html)
See also:
ONLINE BOOKSELLERS JOCKEY WITH PRICE CUTS
[SOURCE: Washington Post (E3), AUTHOR: David Streitfeld]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/18/080l-051899-idx.html )

CABLE-INTERNET REGULATION DEBATED
Issue: Cable
AT&T's proposed acquisition of MediaOne has stirred a growing debate as to
whether data, phone, and Internet services of cables companies should be
regulated. Bell Atlantic is pressuring the Federal Communications Commission to
block the AT&T/MediaOne deal, on the grounds that the joint company would be at
a competitive advantage over other Internet providers, which are regulated. "It
is a discrepancy there is no question about it," admitted William Kennard,
Chairman of the FCC. "My position in the past has been that we have to be very,
very careful about injecting government in a marketplace like the Internet
which has thrived quite well without a lot of government intervention. We need
to proceed very cautiously ... before we say yes regulate or don't regulate."
[SOURCE: San Jose Mercury News, AUTHOR: Jeannine Avaesa]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/451808l.htm)

SATELLITES

SATELLITE DISH OUT STRONG GROWTH
Issue: Satellite
Satellite broadcasters are forging new strategies to compete with cable
operators in the race to deliver new services. Industry analyst, Robert
Kaimowitz says that cable upgrades are so slow that satellites companies are in
a better position. Although cable still leads satellite with 66 million
subscribers, satellite numbers are rising (by 26% to 11.2 million in the 12
months ending in March) and customers become more familiar with equipment. The
biggest problems consumers have with satellite is the need to use a an antennae
cable to get local stations. A bill was approved in the House and is set to go
before the Senate this week that would allow satellite companies to transmit
some local stations. If approved, Echostar plans to offer local stations in 30
markets while DirecTV plans to provide local TV to 20 markets. These satellite
companies are also trying to match cable's advantage of interactive capability.
Last week DirecTV and American Online announced a partnership that would offer
Internet service to satellite subscribers who have a set-top box. This week
Echostar begins delivering its set-top-box to subscribers and will depend on
phone companies for Internet connection.
[SOURCE: USA Today (p. 2B), AUTHOR: David Lieberman]
(http: //www.usatoday.com)

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