August 1999

Communications-related Headlines for 8/31/99

DIGITAL DIVIDE
Computer Graveyard Gives PCs New Life (WP)

TELEPHONY
AT&T Joins Rivals By Lowering Rate For Long Distance (NYT)
FCC Releases Report on Local Competition (FCC)

INTERNET & POLITICS
Internet Transforming U.S. Politics (USA)

HEALTH ONLINE
The Doctor Is Online (WP)
Seniors Eager to Log On (WP)

SATELLITES
ChinaCast Plans to Roll Out Satellite-Based Net Service (WSJ)
European Banks Use Satellites for At-Home Digital-TV Services (WSJ)

INFOTECH
Digital Books on the Web Move Closer to the Market (WSJ)
The Info Culture: Little Realities (ChiTrib)

JOURNALISM
Proposal For The Press: Self-Restraint (WP)

DIGITAL DIVIDE

COMPUTER GRAVEYARD GIVES PCS NEW LIFE
Issue: Digital Divide
The U.S. Department of Agriculture's Computers for Learning program retools
and redistributes used government computers to schools and nonprofit
education groups. The program, launched by Vice President Gore two years
ago, coordinates the revamping and updating of outdated computers donated
from 17 government agencies. Receiving up to 1,000 computers per week, the
program strives to place working computers with school districts and
nonprofit education groups. Nonprofits and schools register their requests
at the programs Web site (www.computers.fed.gov). The staff of the program
attempt to meet each request, with priority given to schools with high
student-to-computer ratios, high percentages of students in assisted lunch
programs and similar criteria that demonstrate the recipient might not be
otherwise able to afford the machines. Before being shipped to their
destinations, each computer is repaired, upgraded and prepared for
immediate use at its destination. In the DC Metro area alone nearly 600
organizations have registered.
[SOURCE Washington Post, A11B, AUTHOR Khiota Therrien]
(http//www.washingtonpost.com)

TELEPHONY

AT&T JOINS RIVALS BY LOWERING RATE FOR LONG DISTANCE
Issue: Telephony
A price war appears to breaking out among the nation's long distance
carriers. AT&T has just introduced a new rate plan that offers calls at 7
cents/minute anytime for a $5.95 monthly fee. This offer comes on the
heels of recent announcements by MCI/Worldcom and Sprint of 5 minutes on
evenings and weekends. "We have to be responsive to the pricing pressures,"
said Eugene Lockhart, president of AT&T consumer services. The new price
war is driven in part by the dropping cost of providing long distance. The
Federal Communications Commission has recently ordered a 4.5% reduction in
the fees that long-distance carriers pay to local phone companies on both
ends of a call. The recent price cuts do not necessarily mean reduced
profit margins for carriers. Long-distance companies find that they can
make considerable profits from international calls, long distance, and
calling cards, the cost of which are often overlooked by consumers.
[SOURCE: New York Times (A1), AUTHOR: Saul Hansell]
(http://www.nytimes.com/yr/mo/day/news/financial/att-rates.html)
See Also:
AT&T UNVEILS SEVEN-CENT PLAN AMID AN ESCALATING PRICE WAR
[SOURCE: Wall Street Journal (B4), AUTHOR: Rebecca Blumenstein]
(http://interactive.wsj.com/articles/SB936018442269757535.htm)

FCC RELEASES REPORT ON LOCAL COMPETITION
Issue: Competition
The FCC has released a report titled _Local Competition: August 1999_. The
report is the first update to the Local Competition report released by the
Industry Analysis Division in December 1998. As did the initial report, the
new report presents and updates available statistical material, data from
Common Carrier Bureau surveys, and information mined from other public
sources. It also discusses preliminary statistical analyses of the effects
of demographic and regulatory factors on the pattern of competitive entry
into local telephone markets. New data contained in the report indicate that
local competition is becoming more geographically widespread. By the end of
1998, competitive local exchange carriers (CLECs) had acquired the numbering
resources necessary to provide services over their own facilities in all
states. As of the end of June, there remained only 18 of the nation's 193
local access and transport areas (LATAs) where CLECs had not yet obtained
such resources. Also, CLEC use of incumbent local exchange company (ILEC)
services and facilities continues to increase. At year-end 1998, the largest
ILECs as a group provided about 2% of their lines to CLECs on a resale basis
(up from about 1% a year earlier). The number of ILEC unbundled local loops
leased to CLECs almost tripled between 1997 and 1998, to a still-small 0.2%
of total ILEC lines. CLECs were, however, reported to be collocated in
switching centers serving almost half of major ILEC total customers. For
additional information, contact the Industry Analysis Division, Common
Carrier Bureau, at (202) 418-0940, or for users of TTY equipment, call (202)
418-0484. [Full text of report is available at
(http://www.fcc.gov/Bureaus/Common_Carrier/Reports/FCC-State_Link/IAD/lcomp9
9-1.pdf)]
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9061.html)

INTERNET & POLITICS

INTERNET TRANSFORMING U.S. POLITICS
Issue: Political Discourse
Politics on the Web is just beginning to show its potential. For example,
during the Clinton impeachment process, a husband and wife duo generated
over 500,000 petitions and raised an astounding $13 million to help defeat
lawmakers trying to impeach the President. There are two sides to the
e-politics fence -- some believe e-politics will transform the entire
political system by removing boundaries and costs. On the other hand, many
feel like the geographical boundaries are there to stay and that e-politics
will only be an addition to the system of democracy. John Phillips,
president of a political fund-raising software company, said that by the
2004 election, as much as 80% of all money raised could flow through
electronic channels. Former Senator Bill Bradley (D-NJ) is raising money
through his Web site and had to get the Federal Elections Commission (FEC)
to re-interpret a rule for matching funds: now credit-card transactions will
qualify. The Internet is causing the FEC to change its rules in several
areas. But the biggest concern with using the Web as a form for activism and
democracy is that online demographics not yet mirror the nation. Those with
Internet access are better-educated, more affluent and more likely to be
white and urban than the population as a whole. An estimated 70 million
Americans are online, but while one-fourth of U.S. households had Internet
access by the end of last year, there is a widening information gap between
those "haves" and "have nots," according to a Commerce Department study.
[SOURCE: USA Today, 1A, AUTHOR: Cathy Lynn Grossman]
(http://www.usatoday.com/news/acovtue.htm)

HEALTH ONLINE

THE DOCTOR IS ONLINE
Issue: Health
A Harris poll released this month indicates that as many as 70 million U.S.
adults have searched the Web for health information in the past 12 months.
Consolation, consultations, advice, tips, miracle treatments, drug data and
doctor directories all fall under the auspices of health information that
is usually free, unfiltered and immediately accessible. However, there is
little evidence yet that the deluge of information is leading to better
care. Estimates for the number of health-related Web sites hover above
15,000. CyberDialogue, an Internet research firm, estimates that more than
half the adults scanning online health information are looking for
disease-related content, most often about cancer.The biggest problem, say
experts, is that a significant number of sites provide false and outdated
information or information that hasn't been reviewed by scientists for
accuracy. Last fall, FTC officials joined counterparts from two dozen
countries to identify 1,200 sites and newsgroups promoting dubious cures
and treatments. Online watchdogs such as www.quackwatch.com and Drkoop.com
have sections that identify what they consider questionable products and
ratings of health sites, respectively. Experts have raised ethical and
legal questions about whether e-mails constitute professional advice. Aside
from its extensive and primary function of serving as a monolithic
database, the Internet is also changing the delivery, speed and business of
health care. Doctors are mixed in their reception to online information
with some saying it requires more time, which they already don't have
enough of. Additionally, doctors who are paid a flat fee or a fee based on
patient enrollment in the health plan may find emailing a patient
cost-effective while doctors who are paid based on the number of patients
they see, may not.
[SOURCE: Washington Post, AUTHOR: John P. Martin]
(http://www.washingtonpost.com/wp-srv/health/daily/aug99/webhealth0831.htm)
See also:
OF FACT, FICTION AND MEDICAL WEB SITES
[SOURCE: New York Times, AUTHOR: Jane Brody]
(http://www.nytimes.com/library/national/science/083199hth-brody.html)

SENIORS EAGER TO LOG ON
Issue: Health
Senior citizens are heading to the Internet in increasing numbers to search
for health care information, resources and options on everything from
cutting-edge treatments to prescription drugs. While this segment of
society has been the slowest age group to embrace the Internet with only 22
percent of people 50 years of age or older people online, according to an
America Online/Roper Starch study published last December. "There is a
tremendous increase in purchases of computers and entry into the Internet
by people over the age of 55. A primary reason for wanting to get on the
Internet is to get health information," Terrie Wetle, deputy director of
the National Institute on Aging, said. One problem for senior citizens
using the Internet is the need for acute vision which is required to use
technology and which can deteriorate with age. Simplified Web sites without
blinking text and large-size icons are best for older people. There is also
concern based on the type of information senior citizens find on the
Internet, how the information is filtered by particular Web sites, whether
seniors are getting good or bad information, and how seniors can be taught
to make distinctions among the types of information they view. A value of
the Internet for seniors looking for health information is that it allows
them to become a more active and informed participant in their health care
options.
[SOURCE: Washington Post, AUTHOR: Judy Licht]
(http://www.washingtonpost.com/wp-srv/health/daily/aug99/webseniors0831.htm)

SATELLITES

CHINACAST PLANS TO ROLL OUT SATELLITE-BASED NET SERVICE
Issue: Satellite/Internet Access
ChinaCast, a China-based Internet company, said yesterday that it plans to
offer Chinese customers Turbo 163, a high-speed Internet service via
satellite by year's end. The service will initially be aimed mostly at
corporate users. The service will be offered through a joint venture with
China Telecom, one of ChinaCast's major shareholders, and available in more
than 300 cities across China where China Telecom now provides Internet
access. ChinaCast hopes to reach 800,000 users in China, or 20% of China
Telecom's Internet-access customers, within 18 months, said ChinaCast
President Lu Rui Feng. Turbo 163 will be the first nationwide broadband
Internet service in China; now only users in a few large cities, such as
Qingdao and Guangzhou, can get broadband access. The company also hopes to
develop its own content for delivery to Chinese homes and offices via
broadband networks. ChinaCast should have plenty of competition from other
providers of satellite-based Net access. Hong Kong-based Pacific Century
CyberWorks, expects to launch such a service in the first quarter of next
year, targeting China and India.
[SOURCE: Wall Street Journal, AUTHOR: Connie Ling]
(http://interactive.wsj.com/articles/SB93603355511305585.htm)

EUROPEAN BANKS USE SATELLITES FOR AT-HOME DIGITAL-TV SERVICES
Issue: Satellite/Television
Some estimates say that by 2003 interactive television will be available to
almost 70 million people in Europe and the U.S. Europe's HSBC Holdings will
attempt to penetrate that market early by launching digital television
banking within the next two months. People will be able to transfer cash and
pay bills as easily as switching channels. "There's none of that http
backslash stuff that you need to type if you are trying to look for
something on the Internet," said Paul Seward, head of strategic development
at HSBC. "My mother could use this." TPS and France Telecom have launched
interactive banking in France and Bancaria de Espana and Banco Cilbao have
begun interactive services in Spain. Seward believes that a lot of
behavioral changes are required to move to this new technology. The
long-term strategy is to make customers reliant on the technology so they
stop using banks -- this way banks can cut their overhead by eliminating
jobs and piling the resources into Internet
banking.
[SOURCE: Wall Street Journal, A17, AUTHOR: Eric Portanger]
(http://interactive.wsj.com/articles/SB93597041870211621.htm)

INFOTECH

DIGITAL BOOKS ON THE WEB MOVE CLOSER TO THE MARKET
Issue: Publishing
A logjam is breaking in digital publishing. Fatbrain Inc will announce today
one of the most ambitious Web clearinghouses for distributing books in
electronic form. Besides serving as a new distribution channel for
conventional publishers, Fatbrain plans to let authors publish their own
works on the site, setting their own book prices and keeping half the
profits. Adobe and Xerox are working on a system to protect electronic works
-- as is Microsoft; the companies are trying to design system that will
allow consumers to buy electronic or paper versions of books -- or both.
"The publishing industry is at a crossroads," declares Dick Brass, a
Microsoft vice president in charge of technology development. "By 2020, 50%
of everything we read will be in electronic form."
[SOURCE: Wall Street Journal, B1, AUTHOR: Don Clark]
(http://interactive.wsj.com/articles/SB936058632716195956.htm)

THE INFO CULTURE: LITTLE REALITIES
Issue: InfoTech
Keller introduces Sneaky Truths About Technology In Culture (STATIC). People
don't use cell phones to convey essential information; they use them to show
off. Palm Pilot is more fun to say than to use. That study about Internet
"addicts" had all the scientific validity of designating someone a
"shopoholic." Despite all its promise, the Web is rapidly becoming one big,
pesky bulletin board, relieved by the occasional wacky home page created by
people named either Chuck or Ed. Friends don't let friends create home pages
and then insist that everyone look at it. Bill Gates' contribution of
computers to public libraries is like a drug dealer pitching in at the local
methadone clinic. Technology jokes [esp telecommunications jokes buried in
news summaries] aren't funny; people just laugh because they are afraid to
look "unhip." Has anyone actually met a real Luddite? If Luddites collected
royalties every time their name was invoked in a belittling reference to
anyone who expresses the slightest reservation about technology, they'd be
millionaires. [Aren't they all working for the IRS?]
[SOURCE: Chicago Tribune (Sec5, p.3), AUTHOR: Julia Keller]
(http://chicagotribune.com/leisure/tempo/printedition/article/0,2669,SAV-990
8310260,FF.html)

JOURNALISM

PROPOSAL FOR THE PRESS: SELF-RESTRAINT
Issue: Journalism
[Op-Ed] The public's distrust of the media has resulted in an economic
backlash -- reduced readership and audiences. Now some wonder if the
public's dissatisfaction with the media will become a legal threat to the
media as well. A recent Freedom Forum poll looked at public views on the
First Amendment guarantee of a free press and found that more than half
those surveyed said the press has "too much freedom." Nearly a third said
the First Amendment "goes too far in the
rights it guarantees." This view is supported by other studies, including
one earlier this year by the Pew Research Center for the People & the Press
-- respondents saying the media protect democracy dropped from 54 percent in
1985 to 45 percent. Additionally, 38 percent said that the media hurt
democracy, up from only 23 percent in 1985. Experts also point to huge libel
verdicts now given in response to media mistakes. "The American press is
schooled to maintain independence and to brave criticism in the interest of
the free flow of information. But too often
these days we just look as if we're ignoring criticism in order to go on
behaving shabbily. The result is erosion of the support that makes freedom
of the press possible."
[SOURCE: Washington Post, AUTHOR: Geneva Overholser]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-08/31/022l-083199-idx.html)

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

Communications-related Headlines for 8/30/99

BROADCASTING
Kosovo's Incipient Media Ministry (NYT)
Diller is Holding Discussions with Several Broadcasters (WSJ)

INTERNET
Democracy Tugs at Internet Agency (NYT)

ECOMMERCE
Newspapers Seek CyberPartners to Fight Online Ads (NYT)
E-Commerce Report: Good Web Site Design Can Lead to Healthy Sales (NYT)

INFOTECH
Japan Bets on a Wired World to Win Back Its Global Niche (NYT)

TELEPHONY
AT&T Set to Respond in Rate-Cut Wars (WSJ)
FCC Approval of Wiretap Standards Brings Law Enforcement to
Digital Age (WSJ)
Rural Calls at Crossroads (USA)
Access Charge Reform (FCC)

JOURNALISM
Ruling Protects Some Materials of Journalists (WSJ)

BROADCASTING

KOSOVO'S INCIPIENT MEDIA MINISTRY
Issue: International/Broadcast/Journalism
[Editorial] The Organization for Security and Cooperation in Europe is
supposed to developing democratic institutions in Kosovo, but is proposing
rules for news media that could threaten democracy and a free press there.
OSCE is directing a radio station and has plans for a television station as
well. The last thing independent journalists need there is more official
media. The Times writes that OSCE's methods are overkill: "Kosovo needs
proper regulation of its airwaves to reserve licenses for legitimate
applicants instead of those with the bigger guns, with some licenses
reserved for multi-ethnic, Serbian and Roma-language stations. But this can
be done without the large bureaucracy the OSCE contemplates. Its staff would
train local journalists, monitor newspapers and broadcasts, and have
ultimate control over a TV station and a radio station with local staff. The
bureaucracy would also impose as yet unspecified regulations on what
journalists can say, especially broadcasters."
[SOURCE: New York Times (A22), AUTHOR: NYTimes Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/30mon2.html)

DILLER IS HOLDING DISCUSSIONS WITH SEVERAL BROADCASTERS
Issue: Ownership
Since the new broadcast ownership rules have made media deals easier, Barry
Diller of USA Networks is making some moves of his own. USA Networks owns 13
TV stations and is in talks with several broadcasters including ABC. USA
Networks is considering options ranging from putting its stations into a
partnership with another company, selling the stations outright or trading
the station group for new cable network interests to add to USA's existing
ownership of the USA, Sci-Fi and Home Shopping Network channels. An ABC
spokeswoman said, "We are looking at our options since the change in the FCC
rules on duopoly, but we never comment on specifics." A senior ABC executive
described the discussions with USA as being of a "general exploratory" kind,
and said that the network was talking to many others at the same time.
[SOURCE: Wall Street Journal, B8, AUTHOR: Martin Peers]
(http://interactive.wsj.com/articles/SB93597041870211621.htm)

INTERNET

DEMOCRACY TUGS AT INTERNET AGENCY
Issue: Internet
Comparing it to a "constitutional convention for cyberspace.... without half
the colonies," critics charge that the interim board of the Internet
Corporation for Assigned Names and Numbers (ICANN) is favoring business and
government over nonprofits and individuals in its policymaking. At issue
are the board's policy setting practices and the lack of consumer and
nonprofit representation in its composition. Critics expressed concern about
proposed rules favoring corporations. During a public session held on
Wednesday, Esther Dyson, ICANN's interim chairwoman, responded to critics by
stating that the board was "less interested in complaints about process" and
more interested in "doing real work and moving forward." While ICANN's draft
rules on cybersquatting were roundly applauded, the proposal also raised
questions as to how ICANN would insure every Internet user a voice in the
process. ICANN responded by more narrowly defining "cybersquatter" adding a
good faith element to the draft. Concerns extend to the composition of the
board as well, while ICANN membership is marked by various government and
business entities, the interim board is struggling on how to structure the
at-large membership. One suggestion recommends 5000 members with the ability
to elect nine of the eighteen permanent members. Even that number, some
believe, would not to accurately represent all concerned parties.
[SOURCE: New York Times, C1, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/30ican.html)

ECOMMERCE

NEWSPAPERS SEEK CYBERPARTNERS TO FIGHT ONLINE ADS
Issue: Newspapers
For the largest-circulation newspapers, classified ads account for 43% of
the advertising revenues and more than 1/3 of total revenue. But the rise of
online classifieds is threatening this franchise which flourished with the
post-World War II buying boom. Michael Beebe, a media analyst for Goldman,
Sachs, said, "There is going to be an erosion in revenue and profitability"
in the old-fashioned newspaper classifieds. "That's not to say that some
company might not discover the right model and build an economically viable
and perhaps value-added business, using the Internet to its advantage,"
Beebe added. "They're all searching for it."
[SOURCE: New York Times (C1), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/30help.html)

E-COMMERCE REPORT: GOOD WEB SITE DESIGN CAN LEAD TO HEALTHY SALES
Issue: Ecommerce
Bad Web design these days could mean a threat to the bottom line for many
companies. "The customer's experience on the Web can make or break a
business," said Mark Hurst, president of Creative Good, a consulting firm
that helps clients address what is known as Web site usability. "There was
$3 billion lost on the Web last year because of poor design -- sites not
realizing that if they just make it easier for the consumer to buy, they'll
make more sales." See the problems e-commerce "leader" IBM had last year and
how it solved its Web site problems.
[SOURCE: New York Times (C2), AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/99/08/cyber/commerce/30commerce.html)
See also:
E-COMMERCE VENTURE HAS $130 MILLION
An Internet company incubator has raised $130 million from investors
including Disney George Soros.
[SOURCE: New York Times (C6), AUTHOR: Andrew Pollack]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/30fund.html)

INFOTECH

JAPAN BETS ON A WIRED WORLD TO WIN BACK ITS GLOBAL NICHE
Issue: Info Tech
After the successes with cars and audiovisual products in the 1970s and
1980s, Japan has economic trouble. Companies there are scrambling to be
world leaders in appliances for the fully wired home: videophones; microwave
ovens from Sharp that automatically cook from recipes found on the Internet,
washing machines with an 18-minute cycle that scrub people instead of
clothes,and personal locators that fit into a pocket and use satellite data
to generate a map showing one's whereabouts.
[SOURCE: New York Times (A1), AUTHOR: Sheryl WuDunn]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/30japan.html)

TELEPHONY

AT&T SET TO RESPOND IN RATE-CUT WARS
Issue: Competition
AT&T is expected to respond today to rival's MCI WorldCom's
nickel-per-minute calling plan launched earlier this month. The MCI
WorldCom calling plan offers consumers a nickel/minute weekend and off peak
(7 pm to 7 am) rate with a $1.95/month fee. However, MCI WorldCom charges as
much as 25 cents per minute for daytime calls unless customers sign up for
an additional $4.95 plan that reduces the peak (7 am to 7 pm) rate to 10
cents per minute. AT&T has filed a tariff with the Federal Communications
Commission
that would allow it to match the MCI WorldCom plan. Those close to AT&T
state that AT&T's plan will probably not match the MCI WorldCom plan, but
most likely focus on convenience, offering a rate between five and 10 cents
24 hours per day. [NPR is reporting this morning that it will be a
$0.07/minute plan.]
[SOURCE: The Wall Street Journal (B4) Author: Rebecca Blumenstein]
(http://www.wsj.com)

FCC APPROVAL OF WIRETAP STANDARDS BRINGS LAW ENFORCEMENT TO DIGITAL AGE
Issue: Telephone Regulation
Friday, the Federal Communications Commission approved requiring
telecommunications providers to meet six new surveillance capabilities
sought by the U.S. Justice Department. All carriers -- wireline, cellular
and broadband personal-communications services must provide law-enforcement
officials holding court orders with wiretap capabilities such as 1)
identification of the location from which a call is placed; 2) the ability
to tap conference calls; 3) provide access to "packet mode"
communications -- the Internet protocol used for voice communications; 4)
allow officials to know when a subject uses call-forwarding, call-waiting
and similar features; 5) ability to access numbers a person dials after a
connection is made to a long-distance provider through a toll-free number;
and 6) access to information needed to correlate call identity with content.
The FCC asked the industry to come up with a solution for standards by
September 2000. Privacy advocates are upset, as they believe these rules go
too far and major telecommunication equipment makers say the deadlines are
too tight to comply. Companies will have to meet an interim industry
standard by June 30, 2000.
[SOURCE: Wall Street Journal, A6, AUTHOR: James P. Miller]
(http://interactive.wsj.com/articles/SB935782397610791581.htm)
See Also:
CALEA
Issue: Wireless
The Federal Communications Commission (FCC) has clarified which categories
of service providers are subject to the requirements of the Communications
Assistance for Law Enforcement Act (CALEA). The FCC also provided guidance
regarding the factors it will consider in determining whether compliance
with the law is "reasonably achievable" for particular carriers.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9038.html)

RURAL CALLS AT CROSSROADS
Issue: Universal Service/Competition
It is hard to imagine -- but telecommunication competition is actually
hurting the rural telecommunications consumer. Why? Well, the local
telephone companies and long distance carriers subsidize many rural areas.
Long-distance companies say the subsidies, mandated by the federal
government, are too high. The long distance companies collect from customers
much of the money for the rural subsidies, which accounts for about 40% of
the price each long-distance call. Long-distance carriers want those
subsidies lowered so they can drop long-distance rates to compete. The
Federal Communications Commission is expected to change the system during
the next two years. This problem could affect everyone because even if new
and advanced services are available in urban areas, they cannot reach their
full potential if they do not reach all areas. Advanced services in rural
areas are much more expensive because, unlike urban areas, rural areas
cannot buy in bulk, so prices for equipment are much higher. About 900
independent rural companies nationwide serve about 4 million of the nation's
approximately 200 million phone lines. An increase of $5/month is possible
if subsidies are cut, says John Rose, president of the 500-member trade
group the Organization for the Promotion and Advancement of Small
Telecommunications Companies.
[SOURCE: USA Today, 1B, AUTHOR: Steve Rosenbush]
(http://www.usatoday.com/money/bcovmon.htm)

ACCESS CHARGE REFORM
Issue: Telephone Regulation
FCC Releases Order and Further Notice of Proposed Rulemaking on Pricing
Flexibility and Other Access Charge Reforms. CC Docket Numbers 96-262, 94-1,
98-157, CCB/CPD 98-63. Comments due October 29, 1999; Reply Comment Date is
November 29, 1999.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99206.pdf)

JOURNALISM

RULING PROTECTS SOME MATERIALS OF JOURNALISTS
Issue: Journalism
Friday, a federal appeals court made it harder to subpoena the
non-confidential notes of reporters, videotapes that weren't broadcast, as
well as other unpublished material. Last year, the appeals court upheld a
lower-court ruling finding NBC in contempt for refusing to turn over
outtakes from a 1997 edition of Dateline, holding that journalists weren't
entitled to any special treatment when it came to turning over
non-confidential information they had obtained. NBC sought a rehearing. So
last week, the appeals court held that the network still had to turn over
the materials because, in this specific instance, they represent significant
evidence for a plaintiff in a pending case, and that the evidence couldn't
be obtained any other way. But the court reversed itself on the broader
issue, holding that journalists were entitled
to a 'qualified' privilege in cases involving non-confidential information.
Without the privilege, the court said, "the resulting wholesale exposure of
press files to litigant scrutiny would burden the press with heavy costs of
subpoena compliance, and could otherwise impair its ability to perform its
duties." The court added that the loss of protection could also result in
fewer people becoming anonymous sources for fear of "being sucked into
litigation" and could appear to turn journalists into an investigative arm
of the government or private parties.
SOURCE: Wall Street Journal, B7, AUTHOR: Frances A. McMorris]
(http://interactive.wsj.com/articles/SB935971018408793049.htm)

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

Communications-related Headlines for 8/27/99

MEDIA & SOCIETY
Pale, By Comparison (ChiTrib)

INTERNET
Icann Approves Set of Procedures For Dealing With Domain Disputes
(WSJ)
France's Jospin Proposes Legislation To Apply Traditional Laws to
Internet
(WSJ)

E-COMMERCE
Who's Reading What? (WP)
Women click Web ads more often (USA)

ACCESS TO GOVERNMENT INFORMATION
Documents In Transition (WP)

INTELLECTUAL PROPERTY
Ford Confronts Perils of Internet As BlueOvalNews.com Makes News (WSJ)

WIRELESS
Video Cellular Phones Closer To Reality (SJM)

MEDIA & SOCIETY

PALE, BY COMPARISON
Issue: Media & Society
A long look at the demographics of the Fall TV line-up from the Trib's TV
critic. Johnson points out the difference between local newscasts -- which
always seem to be delivered by a multiracial mix of men and women -- and
prime time entertainment which is filled by predominately white actors and
actresses. If the broadcast networks are narrowcasting, they seem to be
targeting just the majority white audience -- if we are to accept that
people tend to watch programs that feature their own race. The NAACP and a
coalition of Latino organizations started protesting the "whitewashing" of
prime time TV this summer. Of the nearly three dozen new series starting
this fall on the six broadcast networks, only six have minorities in leading
roles. Yvette Lee Bowser, an established TV writer, said, "There's a very
unfortunate reality that we have to deal with this particular season," she
said. "But it existed last year, too, and the year before....And I think
that people...are considering the kind of impact, the social impact, that
homogenized television will have on our culture." Johnson asks, Why does it
take the NAACP and media critics to awaken a TV network to something so
obvious as the fact that television, as a primary social force, will come
under scrutiny with regards to hot-button issues such as race? TV has
"increasingly become only white," says UPN President Dean Valentine, and is
"becoming increasingly divorced from the American way of life. I've always
felt that it was good business and it was responsible business for us to
try, over time, to reflect the way the country looked," Valentine says.
"There's a huge African-American middle class....We're one big capitalist
country and I think it's a silly and shortsighted business decision to
alienate an entire segment of the population." [There's more -- a lot more
-- at the URL below.]
[SOURCE: Chicago Tribune (Sec 5, p.1), AUTHOR: Steve Johnson]
(http://chicagotribune.com/leisure/tempo/printedition/article/0,2669,SAV-990
8270130,FF.html)

INTERNET

ICANN APPROVES SET OF PROCEDURES FOR DEALING WITH DOMAIN DISPUTES
Issue: Domain Names/Trademark
In Santiago, Chile, the interim board of the Internet Corporation for
Assigned Names and Numbers (ICANN) approved a set of procedures yesterday
for dealing with disputes over rights to Internet domain names. In a
unanimous decision, ICANN will allow 57 recently created "registrar"
companies to begin registering Internet addresses without fear of being
drawn into costly legal battles over domain-name rights. Five other
registrars already are operating on a test-case basis. Two of those
companies -- AOL and Registrar.com -- spearheaded the creation of a formal
dispute-resolution mechanism. The board also agreed to study several
modifications within 45 days regarding the procedures proposed by a group
representing noncommercial users, small businesses and individuals. One
particularly difficult issue at the meeting was cybersquatting, which ICANN
has defined as the bad-faith registration of domain names to make a profit
on reselling them.
[SOURCE: Wall Street Journal, AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB935693421619850720.htm)
See Also:
INTERNET OVERSIGHT BOARD ADOPTS NEW RULES ON DOMAIN NAMES
[SOURCE: New York Times (C2), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/27icann.html)
WHOSE WEB SITE IS THIS?
[Op-ed] China.com, an Internet portal partially owned by China's state-run
Xinhua news agency, has registered the domain name Taiwan.com. Several
hundred Taiwanese professors and lawmakers are leading an effort to take
China.com to court in the U.S. for misrepsentation. "One country, two Web
sites. Not good, writes Friedman. The case illustrates how the all-consuming
identity crisis between the China and Taiwan is making both sides crazy.
[SOURCE: New York Times (A25), AUTHOR: Thomas Friedman]
(http://www.nytimes.com/library/opinion/friedman/082799frie.html)

FRANCE'S JOSPIN PROPOSES LEGISLATION TO APPLY TRADITIONAL LAWS TO INTERNET
Issue: Regulation
French Prime Minister Lionel Jospin announced plans for Internet-related
legislation that his administration will present to Parliament in early
2000. The proposals for regulation will attempt to formalize mechanisms for
applying laws to cyberspace in areas such as encryption and confidentiality,
consumer protection, copyright and piracy. Prime Minister Jospin said ithe
plans will address the challenge of creating a legal framework for
electronic transactions that ensures security and it will seek to reinforce
authorship rights for material distributed through the Web. Prime Minister
Jospin also proposed creating an independent body that would bring together
public and private players to consult and set standards on Internet issues.
Prime Minister Jospin also announced his intention to pursue an increase in
the defense budget to fund efforts to protect France's information
infrastructure. Some of the proposed legislation would likely bring the
French government's policies in line with directives from the European
Commission with respect to privacy.
[SOURCE: Wall Street Journal, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB935705447708054699.htm)

ACCESS TO GOVERNMENT INFORMATION

DOCUMENTS IN TRANSITION
Issue: Access to Government Information
[Editorial] The Commerce Department has plans to close the National
Technical Information Service, the information service that offers citizens
a place to buy government reports on scientific and technical topics. Many
academics and librarians wonder what will replace the information
clearinghouse as a central reference point and as a connection to the
"depository libraries" in all 50 states that store core government
documents. A new distribution system could be a considerable improvement
over the current matrix, in which the Library of Congress, the National
Archives, the Government Printing Office and others perform overlapping
tasks. "In one glaring irony," note the Post writers, "the recent Commerce
Department report warning of a 'digital divide' -- a growing inequality
between the better-off who have Internet access and those outside the
system -- was available online for free, while those presumably
less-wealthy souls who couldn't read it on the Net would have had to pay
$27 for a paper copy."
[SOURCE: Washington Post (A28), AUTHOR: Washington Post Editorial Staff]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-08/27/005l-082799-idx.html)

E-COMMERCE

WHO'S READING WHAT?
Issue: Privacy
Through a new feature on the Amazon.com Web site you can find out "101
Nights of Grrreat Sex" is one of the top reads at the National
Semiconductor company, or that Microsoft workers are flocking to read "The
Microsoft File: The Secret Case Against Bill Gates." Online bookseller
Amazon.com has begun offering thousands of individual bestseller lists
calculated by Zip code, workplace or university. "We're taking chances,
we're innovating here," said Amazon spokesman Paul Capelli. "This program
is building community and adding a unique feature that never could have
existed before the Internet." Some customers, however, have complained that
Amazon's list amount to an invasion of privacy. As a result, the bookseller
has created an option that allows buys to choose not to have their data
collected. David Sobel, general counsel of the Electronic Privacy
Information Center commented that privacy is one of the biggest concerns
surrounding electronic commerce. "It doesn't seem like a good business
decision to do something that highlights your collection of customer
profiles," he added. "It throws fuel on the fire."
[SOURCE: Washington Post (A1), AUTHOR: David Streitfeld]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-08/27/099l-082799-idx.html)
WOMEN CLICK WEB ADS MORE OFTEN
Issue: E-commerce
PC Data Online recently released a study conducted at the beginning of the
month that says more women than men are clicking on Internet banner
advertisements. Over three days, 1,479 males and 1,333 females from the
online environment were recruited and evaluated. Just over half of women
asked said they "occasionally" click on a Web ad banner, while 43% of men
said they did the same. Almost 40% of men and 29% of women said they
"seldom" click on ads. Sean Wargo, Internet research analyst at PC Data
Online, noted, "in the typical household, the women are the main shoppers."
PC Data also said women are more motivated than men by curiosity. "So they
might be more inclined to click on an ad." Ads in motion were far preferred
to ads at rest, according to the study. Animated ads were the most preferred
by both men and women at 70%, followed by non-animated ads at 23% and pop-up
ads at 7%. Pop-up ads on the Internet are the least favored by both sexes --
only six percent of men and eight percent of women like the particular ad
format. Why do people click? PC Data said 61% of its respondents cited
curiosity about the ad's subject as their primary motivator, as opposed to
discounts or familiarity with the product. About half of both men and women
rely on Internet ads as a source of information about new Web sites, the
study also showed. PC Data's Web site is at http://www.pcdata.com .
[SOURCE: USA Today, AUTHOR: Bob Woods - Newsbytes News Network]
(http://www.usatoday.com/life/cyber/nb/nb3.htm)

INTELLECTUAL PROPERTY

FORD CONFRONTS PERILS OF INTERNET AS BLUEOVALNEWS.COM MAKES NEWS
Issue: Intellectual Property
Ford Motor Company filed a complaint in U.S. District Court in Detroit,
arguing that Robert Lane, a 32-year-old nursing student of Dearborn,
Michigan, violated copyright and trademark law because he copied and
disseminated internal documents and used the trademarked blue Ford oval on
his Web site, blueovalnews.com. Ford also contends Lane solicited its
employees for information. Lane, who owns four Ford Mustangs and two F-150
trucks, argues that he has done nothing wrong and is covered by the First
Amendment. "There is not one piece of e-mail or fax or letter that they can
produce that will testify that I've solicited anything," he says. "And I
never sold a single document." On Wednesday, Ford won a temporary
restraining order against Lane. This case poses critical questions about the
media in the Information Age. For example,what's the difference, if any,
between Lane's Web site and a trade journal or newspaper that might publish
the same documents? Floyd Abrams, a First Amendment lawyer, said, "There are
extraordinary legal issues to be dealt with about the Net. One is: Are
individuals on the Web given the full range of the First Amendment
protections as journalists? If Mr. Lane was simply handed the documents, he
would get the same protections." Ford spokesman Jim Cain says the company
met with Lane last October to discuss its concerns about the site -- but
Lane refused to stop posting the internal documents. Cain wouldn't speculate
on why employees would have given away this information. "We can't assume
their motivations," he says. "But it's still wrong."
[SOURCE: Wall Street Journal, AUTHOR: Fara Warner and Jeffery Ball]
(http://interactive.wsj.com/articles/SB935680625618499174.htm)

WIRELESS

VIDEO CELLULAR PHONES CLOSER TO REALITY
Issue: Video Technology/Wireless
Soon people will be able to tune in video from the Internet on their
wireless phones or hand-held computers. Software being developed by San
Diego-based PacketVideo could help speed the arrival of "anytime,
anywhere" Internet access. Industry analysts say that innovations such as
this are indicative of how wireless networks are evolving, gradually taking
on all the functions of their wired counterparts. "In the near future,"
said, PacketVideo chief executive James Carol "we'll see a variety of
video-enabled mobile Internet access devices that road warriors can use to
keep in touch with their families and offices." Originally, PacketVideo
planned to wait until the so-called third-generation of wireless networks,
which aren't expected to appear before 2003. But after being asked by
several companies, it decided to attempt adapting its approach to current
low-speed wireless connections. Resent demonstrations reveal that
PacketVideo's software actually produces a less jerky picture that what one
might see with an ordinary low-speed wire-line connection.
[SOURCE: San Jose Mercury News, AUTHOR: Joh Healey ]
(http://www.mercurycenter.com/svtech/news/indepth/docs/celvid082799.htm)

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

Communications-related Headlines for

INTERNET GOVERNANCE
Can Anyone Organize the Internet? Yes, ICANN. (WSJ)
Internet Group Says Individuals Will Have to Wait (NYT)

POLITICAL DISCOURSE
Following the Money, Through the Web (NYT)

WIRELESS
Speeding Up Wireless Computing (NYT)
Bell Atlantic in Talks with Vodafone (USA)

MEDIA & SOCIETY/ MINORITIES
BET.com Will Spur, Not Scare, Competitors (USA)

MERGER
Cisco to Acquire Networking Firm Cerent (WSJ)

LIBRARIES
The Struggle to Find Librarians (WP)

INTERNET GOVERNANCE

CAN ANYONE ORGANIZE THE INTERNET? YES, ICANN.
Issue: Internet
[OP-ED] ICANN held its third board meeting, which wraps up today in Santiago,
Chile. Ester Dyson wrote of the agenda of this meeting by stating that ICANN
was set up to make the protocols of the Internet work. She said ICANN is
making decisions concerning "policies for the allocation of domain names in
the .com, .net and org 'top level' domains -- for now, the most popular
ones. Our challenge is to find some consensus on where to draw the line
between 'abusive' registrations, in which someone is stealing the value
created by someone else's trademark -- and cases where someone in good faith
has registered a name that may be someone else's trademark." Dyson continued
by saying that the Internet originally grew by market rules but that it
cannot continue for two reasons. First, she said, "the old system is no
longer working so smoothly. Like it or not, governments around the world --
not just the U.S. -- want to see someone 'in charge'." Secondly she stated,
"Moving from monopoly to an open market is a complicated process, as
experience in the telephone market has taught. In the long run, the market
will work, but making the transition requires oversight." Dyson said that
there may be other alternatives to the trademark/domain name issue in the
future -- so that people are not battling over the few names ending with
.com. "In addition to .com, .net and .org, do we want .store,
.air for airlines or .fin for financial institutions?" she asked. "That
would provide
some competition for .com, and competition is the best market regulator."
Dyson ended by saying, "Icann's challenge is to help that happen
smoothly -- and not to get so wedded to fixing the current system that it
can't recognize the value of something better."
[SOURCE: Wall Street Journal, A18, AUTHOR: Esther Dyson is the president of
Edventure Holdings and interim chairman of Icann]
(http://interactive.wsj.com/articles/SB935619569495464879.htm)

INTERNET GROUP SAYS INDIVIDUALS WILL HAVE TO WAIT
Issue: Internet
Internet Corporation for Assigned Names and Numbers (ICANN), the Internet's
new governing body, has again rejected request to create a membership group
that would represent individual Internet domain name owners. ICANN has
plans to adopt a policy for resolving domain name disputes at its board
meeting, which is being held at the University of Chile this week. Critics
say that the proposal on the table, which was written without input from an
official voice of individual Internet user and non-commercial interests,
favors major trademark holders over individuals and small businesses.
"Given that individuals are the single largest group of Internet users, it
is remarkable that substantive issues that speak directly to the rights of
domain name holders are being resolved with neither individuals nor
non-commercial users being represented," wrote Mikki Barry of the Domain
Name Rights Coalition.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/08/cyber/articles/26domain.html)

POLITICAL DISCOURSE

FOLLOWING THE MONEY, THROUGH THE WEB
Issue: Political Discourse
As the 2000 presidential race heats up, the Internet has made it easier
than ever to track who is giving money to whom. On the Web you can find
out, for instance, that the famous Beverly Hills ZIP code 90210 gave more
money to federal candidates than any other ZIP code in California. The
Internet is making it easier for journalists, political opponents and
citizens to draw connections between the dots between politician's
positions and their funding sources. Federal candidates and their parties
have had to provide filings with the Federal Election commission on how
much money is raised, who donated it and how the money is spent. Until
1996, when the commission began putting much of the information online, one
needed to go to the commission's offices in Washington to access those
records. "This is an extraordinary development. Anyone, anywhere in
America, can click onto one of these Web sites and see who is behind their
lawmaker," said Charles Lewis, executive director of the Center for Public
Integrity. "I don't want to sound pie-in-the-sky, but this brings democracy
and accountability much closer to the average citizen."
[SOURCE: New York Times (E1), AUTHOR: Leslie Wayne]
(http://www.nytimes.com/library/tech/99/08/circuits/articles/26camp.html)

WIRELESS

SPEEDING UP WIRELESS COMPUTING
Issue: Wireless
As the idea of wireless data networks grows in popularity, cellular
carriers and other companies are working hard to bring mobile technology up
to speed. Currently, even the most state of the art wireless data
transmissions are slow compared to high-speed lines. In the next few years,
more than a dozen companies will spend millions of dollars to upgrade the
nation's wireless systems, with means adding software and hardware to tens
of thousands of the cellular base stations. Upgrades will happen
bit-by-bit, much the way the current wireless systems came to be. For some
carriers, the first step in the transition is an increase to 14.4 kbps,
which does not allow much beyond transmitting e-mail and files and
obtaining relatively small amounts of information off of Web sites. By 2001
or so, such services could be eclipsed by a system known as G3, the true
third generation for high-speed wireless transmission, and speeds of up to
2 megabits per second. G3 will arrive in Europe and Japan much sooner,
because among other things, U.S. carriers must contend with incompatible
and competing standards for digital services. Some analysts and industry
executives are even questioning the need for these super-high-speed data
wireless networks. "The question is, What will customers do with such
high-speed links for data?" said Oliver Valente, vice president for
advanced systems development at Sprint PCS. "It will depend on the market
we see for very high-speed data."
[SOURCE: New York Times (C8), AUTHOR: Katie Hafner]
(http://www.nytimes.com/library/tech/99/08/circuits/articles/26next.html)

BELL ATLANTIC IN TALKS WITH VODAFONE
Issue: Wireless
An alliance is being discussed that would give competition to national
wireless carriers such as AT&T, Sprint and Nextel. The alliance, between
Bell Atlantic and Vodafone would allow customers who buy large blocks of
time to call anywhere in the U.S. without paying long-distance prices.
Bankers for the two companies are meeting this week in London to discuss
details. Together, the companies have 17 million wireless customers. A full
merger has also been in the discussion, but Bell Atlantic is buying GTE,
which competes with Vodafone in some markets and they would likely be forced
by regulators to sell off some of their other assets to complete such a
deal. For the short term, a long term roaming agreement seems to be the
likely outcome, allowing each companies' customers to get discounted prices all
across the U.S. for their wireless services.
[SOURCE: USA Today, 1B, AUTHOR: Steve Rosenbush and Thor Vladmants]
(http://www.usatoday.com/money/mds9.htm)

MEDIA & SOCIETY/MINORITIES

BET.COM WILL SPUR, NOT SCARE, COMPETITORS
Issue: Internet/Minorities
BET.com, a web portal aimed at African-Americans Web users is not ensured
an e-commerce monopoly similar to that of its broadcast unit Black
Entertainment Television. Rather, the first-of-its-kind Web site will
likely open the door to more capital for competitors also targeting
minorities on the Web. BET.com was announced by Robert L. Johnson, chairman
and fonder of Black Entertainment Television, and will be launched in
November with funding from Microsoft and three media giants. Research shows
4.3 million African American use the Internet from home, and, according to
Forester Research, African-Americans are adopting the Internet at a faster
rate than the rest of the population. Venture capitalists are expected to
take an active interest in Web sites with similar audiences to BET.com,
such as Blackvoices.com and Netnoir.com.
[SOURCE: USA Today, AUTHOR: Gwen Daye Richardson]
(http://www.usatoday.com/news/comment/ncguest1.htm)

MERGER

CISCO TO ACQUIRE NETWORKING FIRM CERENT
Issue: Merger
In what is believed to be the highest price ever paid for a closely held
technology company, Cisco Systems has agreed to acquire Cerent for about
$6.9 billion in stock. Cerent, a Petaluma, California start-up company,
makes devices that route telephone calls and Internet traffic on and off
fiber-optic lines. Its equipment serves as a bridge between communications
lines and the local telephone and data network, helping to reduce congestion
and allow phone companies to move more types of data faster. Cerent's first
product, for example, can handle 240 gigabits of data a second, the
equivalent of 3.8 million phone calls or 160,000 high-speed T-1 lines.
Cerent commanded the extraordinary price even though it has never turned a
profit. Cisco announced the acquisition along with a deal to buy Monterey
Networks, a Richardson, Texas networking company, for about $450 million in
stock -- these two purchases are Cisco's 39th and 40th acquisitions.
Speaking with Cerent employees, John Chambers, Cisco's chief executive, said
his company is determined to be the leader in optical networking technology.
"We don't think this can be done by one company without combining skills,"
he said.
[SOURCE: Wall Street Journal, A3, AUTHOR: Scott Thurm]
(http://interactive.wsj.com/articles/SB935625277526496066.htm)

LIBRARIES

THE STRUGGLE TO FIND LIBRARIANS
Issue: Libraries
As traditional school libraries have turned into media labs, schools are
hard pressed to find librarians at ease with both books and technology. A
shortage of librarians in general was instigated by the early retirement of
many older librarians uneasy with the new technology found in most
libraries today. There is also swelling retirement numbers of tech-savvy
librarians of the baby-boom generation. In Maryland, Virginia and the
District of Columbia, at least half of all library media specialists are
expected to retire in the next five to 10 years. Some schools districts are
actively recruiting teachers who are also trained in the latest technology
so they eventually can become library media specialists, as well as
offering tuition-reimbursement programs for current teachers to attend
local universities and take classes towards a master's degree in library
science. Other school districts are using parent volunteers in school
libraries. "Being a [media specialist] is not one of the more glamorous of
technology jobs," Ken Reed, director of technology services and resources
for Alexandria schools . "A lot of people see themselves in classrooms and
not in the library. . . . That's because it is a job that is not well
understood and appreciated."
[SOURCE: Washington Post, AUTHOR: Mary Louise Schumacher]
(http://search.washingtonpost.com/wp-srv/WPlate/1999-08/26/016l-082699-idx.h
tml)

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

Communications-related Headlines for 8/25/99

DIGITAL DIVIDE
Closing the Digital Divide Conference (NTIA)
Children Of Migrant Workers Keep Up Studies On The Internet (NYT)
Intel Takes Kids Inside To See What Makes Computers Tick (SJM)
Tech Grants To Assist Rookie Teachers (SJM)

INTERNET
Internet Board Opens Chile Meeting Amid Protests (CyberTimes)
AT&T Enters Brazil Telecom, Internet Market (SJM)
AOL Launches Free Net Access in Britain (WSJ)
Something In The Air On Net Access (SJM)

TELEPHONY
Phone Deal Fears Focus on Delay (ChiTrib)
Wireless Nation: Finland Pushes Cell Phone to
the High Tech Limit (WSJ)

OWNERSHIP
Newspaper Association Asks FCC to Ease Rule on
Broadcast Holding (WSJ)

DIGITAL DIVIDE

CLOSING THE DIGITAL DIVIDE CONFERENCE
Issue: Digital Divide
From Press Release: Commerce Secretary William Daley announced that he will
convene a national meeting this fall to address the information technology
gap that exists across the country as highlighted in a recent Department
report. Daley called for a serious dialogue among major technology
companies, civil rights organizations, civic leaders, and community groups about
how to bridge the digital divide in underserved communities. "The best way
to bring inner cities back to life is for government and business, educators
and community leaders to work together," Daley said. "We must close the
digital divide, and bring along all who have not shared in the boom of the
late 1990s," he said at the Greater Washington Urban League Technology
Center in northeast Washington, where he appeared with Washington Mayor
Anthony Williams and representatives of the AT&T Foundation and Microsoft.
Secretary Daley highlighted the Urban League center as a model for other
communities and applauded the commitment of Microsoft and AT&T to dedicate
their resources to addressing the digital divide in D.C. (See Sec Daley's
remarks at
http://204.193.246.62/public.nsf/docs/1C11DBA2E64D9A06852567D70060F5AC)
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/dcdividerls82499.htm)

CHILDREN OF MIGRANT WORKERS KEEP UP STUDIES ON THE INTERNET
Issue: EdTech/Digital Divide
Keeping up in school can be very difficult for students whose migrant
worker parents move the family great distances each year. Because shuttling
between states with different school calendars and curriculums can take
such a toll, a two-year old project funded by the Department of Education
is providing some migrant high school students with lap-top computers that
enable them to take classes online. "If I can get the class over with online,
I can do something else in school instead of feeling like I have to
catch up," said Mario, who's family travels from Texas to New York each
year. The courses are offered through NovaNET, an online education company
that sells its services to school districts. Some critics, however, feel
that the program just offers a bandaid for these students, while ignoring
the larger social problems at its root. "It promises to solve a problem
without addressing the real nature of the problem involved -- an
exploitative labor system," said Douglass M. Sloan, a professor at Columbia
University's Teachers College.
[SOURCE: New York Times (A24), AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/08/cyber/education/25education.html)

INTEL TAKES KIDS INSIDE TO SEE WHAT MAKES COMPUTERS TICK
Issue: EdTech/Digital Divide
A program developed by a partnership between the Santa Clara County
Alliance of Black Educators, Intel, and the Healing Institute will attempt
to combat the low levels of interest in math, science and technology among
African-American youths in the Bay Area. The over one hundred participants
in the Intel Carver Scholars Program will receive old laptops no longer
used by Intel employees. Some of the students even get the chance to go to
Intel, where will they help bring the outdated computers back to life.
"What better place to resolve the digital divide than in the heart of
Silicon Valley?" said Rasheed Salaam, operations director for the Healing
Institute. "It is one of the places where we see the biggest gap." The
Silicon Valley Network reported in May that one-third of the valley's
high-tech positions are filled by recruits from outside the region, because
of the lack of interest and training in high-tech careers among area high
school students.
[SOURCE: San Jose Mercury News, AUTHOR: Deborah Claymon]
(http://www.mercurycenter.com/svtech/news/indepth/docs/laptop082599.htm)

TECH GRANTS TO ASSIST ROOKIE TEACHERS
Issue: Ed Tech
U.S. Education Secretary Richard Riley announced the disbursement of $135
million in technology education grants on Tuesday. The grants are
considered unique because they will be used to train 400,000 new teachers
nationwide on how to integrate computer use into a classroom curriculum.
Most of the grants were distributed to teacher-education programs at
colleges throughout the country.
[SOURCE: San Jose Mercury News, AUTHOR: Dana Hull]
(http://www.mercurycenter.com/svtech/news/indepth/docs/riley082599.htm)

INTERNET

INTERNET BOARD OPENS CHILE MEETING AMID PROTESTS
Issue: Internet
A major meeting of the Internet's new international governing body, the
Internet Corporation for Assigned Names and Numbers (ICANN), opened in
Santiago, Chile this week. Controversy over how to guarantee that individual
Internet users and non-commercial interests have a voice in upcoming policy
decisions enveloped the event. Many are concerned that big business and
major trademark holders have dominated the process for drafting the rules
for resolving cybersquatting and other disputes. A newly formed group of
non-commercial domain-name holders have circulated a petition asking that
the board delay its Thursday vote when it considers a proposal for cracking
down on cybersquatters -- people who buy Internet domains with popular names
or trademarks in hopes of reselling them at a hefty profit. The group fears
the current proposal defines cybersquatting too broadly, enabling companies
to use the rules to take domain names away from individuals that might have
legitimate claims to those names. ICANN has not yet officially recognized
the non-commercial group , and has voted against a proposal to create a
separate body to represent individual domain name owners.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/08/cyber/articles/25domain.html)

AT&T ENTERS BRAZIL TELECOM, INTERNET MARKET
Issue: International/Broadband
AT&T, the number one U.S. long-distance carrier, said Tuesday it agreed to
buy Brazil's Netstream, an emerging carrier with a broadband network base.
"AT&T's intention is to grow with Brazil, one of the most dynamic and
exciting telecommunications markets and one of the fastest growing in the
world," said George Foyo, president of AT&T's operations in Latin America
and the Caribbean. The acquisition marks another step in AT&T's recent
international expansion, which includes investments in Canada, Japan and
Mexico. Netstream, an upstart that began less than a year ago, has one of
the biggest fiber optic cable networks in the country. The company focuses
on data and Internet services for businesses, but it could also offer more
basic residential service when the sector opens up to competition after 2002.
[SOURCE: San Jose Mercury News, AUTHOR: Shasta Darlington (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/784400l.htm)
See Also:
AT&T WILL PAY $300 MILLION TO ACQUIRE BRAZILIAN BROADBAND CARRIER NETSTREAM
[SOURCE: Wall Street Journal, AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB935520592807175039.htm)

AOL LAUNCHES FREE NET ACCESS IN BRITAIN
Issue: Internet Access
AOL's European company has decided to compete with Freeserve, launching
a free Internet-access service in Britain. Freeserve, which makes
money from subscribers' phone charges, has become the biggest
Internet-access provider in Britain with 1.3 million registered users.
That's more than twice as many as AOL's subscription-based service, which
was launched
in January 1996. AOL's new service, Netscape Online, also will get revenue
from phone tolls, as well as advertising and electronic-commerce
commissions. Through an agreement with Kingfisher, AOL will distribute
CD-ROMs containing Netscape Online software through 789 Woolworths stores,
beginning September 1st.
[SOURCE: Wall Street Journal, A13, AUTHOR: Stephanie Gruner]
(http://interactive.wsj.com/articles/SB935498141481570498.htm)

SOMETHING IN THE AIR ON NET ACCESS
Issue: Internet Access
Nine companies in California's South Bay area are offering wireless service
to Internet businesses in need of network access with a promise of fast
access and a more affordable price than traditional high-capacity
connections. One of the companies is testing a wireless service that will
run nearly 2,000 times as fast as a dial-up Internet connection. The
wireless carriers, which offer Internet access as well as voice and data
services, are facing significant competition from other new
phone-line technologies providing high speed access at relatively low
prices. These wireless companies are competing by offering even more speed,
cheaper prices, faster delivery, and service to businesses in areas not
reached by traditional phone-line carriers. One issue faced by the wireless
companies is the need for a clear line of sight between transmitters.
Additionally all the users who connect to the new network have to share its
capacity, which can slow the network down as the number of users increases.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/broad082599.htm)

TELEPHONY

PHONE DEAL FEARS FOCUS ON DELAY
Issue: Mergers
Illinois Commerce Commission appears close to approving the SBC-Ameritech
merger, but one ICC commissioner is raising fears that the conditions placed
on the merger will be too stringent. Commissioner Richard Kolhauser worries
about a proposed requirement that before the merger closes, Ameritech must
open its Illinois network to sharing transport of communications traffic
with competitors such as AT&T Corp., Sprint Corp. and MCI WorldCom Inc.
Kolhauser said that condition means competitors could argue Ameritech hasn't
complied with the requirement -- even if it has done so -- and drag out the
issue while opposing parties wrangled before the ICC. "I'm concerned that
this could prove a back-door approach to delaying this merger for months,"
said Commissioner Kolhauser. "Shared transport is a very contentious issue.
All parties will game this process as much as possible." The commissioner is
suggesting that SBC be required to open Ameritech's system to competitors
within 30 days after the merger closes. Com Kolhauser also is questioning
the consensus to estimate the savings from the merger and pass it on to
customers. He thinks it would be more appropriate to review local phone
charges at another time. The ICC is expected to complete its merger review
by Labor Day.
[SOURCE: Chicago Tribune (Sec3 p1), AUTHOR:Jon Van]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99082500
67,FF.html)

WIRELESS NATION: FINLAND PUSHES CELL PHONE TO THE HIGH TECH LIMIT
Issue: Wireless
Despite its small size and relative isolation in the Arctic Circle, Finland
is leading the pack in mobile phone technology. Many new homeowners never
bother ordering fixed-line service. There are two reasons for the high
wireless penetration in Finland. First, the country hosts many eager users
as 60% of Finns own mobile phones (compared with about 25% of Americans).
Second, Nokia, which recently passed the USA's Motorola as the leading
supplier of mobile handsets with 37.4 million sold in 1998. Today in Finland
you can use your wireless phone to send text messages to other users instead
of calling them -- SMS (Short Message Service) is exploding, particularly
among teens, who like its low cost and classroom-friendly silence. You can
also purchase items such as a car wash by phoning a number that charges the
goods/services to your phone bill. "Finland will hit 100% penetration by
late 2000," predicts Christian Kern,
London-based wireless analyst for Salomon Smith Barney. Timo Saari, a Ph.D.
candidate in psychological reactions to communication technology at Stanford
University, said, "Your phone will know where you are at all times. It will
provide you information based on your profile. News. Sports scores.
Whatever. As you walk a block, ads will flash onto the phone's screen,
perhaps a beep alerting you to a sale going on inside a store you've passed.
Or as you turn a corner, an alert telling you not to go that way because
there's a gas leak." The goal of the Finnish mobile providers is to make
the portable phone as indispensable as oxygen. No one is betting against
them.
[SOURCE: USA Today, 1A, AUTHOR: Marco R. della Cava]
(http://www.usatoday.com/news/acovwed.htm)

OWNERSHIP

NEWSPAPER ASSOCIATION ASKS FCC TO EASE RULE ON BROADCAST HOLDING
Issue: Ownership
The Newspaper Association of America has asked the Federal Communications
Commission to suspend the rule that prohibits ownership of a broadcast
station and a daily newspaper in the same locale. In its petition, the
association asked the FCC to cease enforcing that regulation or implement a
waiver policy until the rule can be repealed -- as the association contends
recent relaxation of broadcast rules have put newspaper owners at a
disadvantage. Earlier this month the FCC relaxed ownership rules on
broadcasters owning two TV stations in the same market as well as the
cross-ownership rules between television and radio.
[SOURCE: Wall Street Journal, B2, AUTHOR: Associated Press]
(http://wsj.com)

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

Communications-related Headlines for 8/24/99

DIGITAL DIVIDE
Urban League Tech Training Center (NTIA)
A Change in Attitudes Will Help Asian Women Aspire to Be Techies (WSJ)

INTERNET
How to End the World Wide Wait (WSJ)
Earthlink and GTE in Web-Access Deal (NYT)
Chinese Cable TV Plans Leap Into Internet (SJM)
Administration Appoints E-Commerce Adviser (CyberTimes)
Info Culture: It All Ads Up (ChiTrib)
Feature Film to Be Produced for Direct Release on the Web (NYT)

TELEPHONY
SBC Communications to Launch Phone-Service 'Bundles' in Two Markets to
Compete with AT&T (WSJ)
Phone Wars (WP)
Companies Team on Wireless Standards (NYT)

TELEVISION
Nonprofits Courting DBS for Set-Aside Channels (Current)
Putting the Lid On Cable? (B&C)

DIGITAL DIVIDE

URBAN LEAGUE TECH TRAINING CENTER
Issue: Digital Divide
On August 24 at 10am, Commerce Secretary William Daley will visit Urban
League Tech Training Center with Mayor Williams and Private Sector
Representatives. Greater Washington Urban League's Information Processing
Training Center, 6017 Chillum Place, NE (202-291-1230). Visit will highlight
computer technology training program and include discussions with summer
program students at 21 year-old Urban League center; announcements by
corporate leaders of national and local programs to address digital divide
in emerging markets and underserved communities. For more info contact
Morrie Goodman (202-482-4883) or Mary F. Hanley (mhanley( at )ntia.doc.gov
202-482-2075)
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/chillu82399.htm)

A CHANGE IN ATTITUDES WILL HELP ASIAN WOMEN ASPIRE TO BE TECHIES
Issue: International
Asian women in increasing numbers are logging onto the Internet, as an
article last month in the Wall Street Journal documented. Mark Mechem,
deputy director in Beijing of the U.S. Information Technology Office, wrote
an essay about the trend. "Now that young Chinese women are coming online,"
he wrote, "we have at least one of the necessary preconditions in place to
really begin driving Internet growth in China." However, Asian women still
face many factors within their culture that push them away from technology
-- especially parental attitudes. Sesser interviewed Yolanda Chan, a native
of Hong Kong, who heads Microsoft's Hong Kong Partner Business Group and
Business Solutions Group. Chan said that despite her parents' objections to
her studying technology, she loved PCs and programming too much. She said at
first her father was negative -- but now he clips every article with her
name in it. Sesser thinks it attitudes still need to change in Asia for
women to be accepted as full equals in education, so that they can develop
computer skills, and in technology enterprises, so that they can rise on the
basis of their talents as rapidly as men.
[SOURCE: Wall Street Journal, AUTHOR: Stan Sesser]
(http://interactive.wsj.com/articles/SB935421548883691950.htm)

INTERNET

HOW TO END THE WORLD WIDE WAIT
Issue: Broadband
[Op-ed] Federal Communication Commission Chairman William Kennard
discusses the broadband revolution saying, "anyone who has ever gone
online knows, the World Wide Web is too often the World Wide Wait. To take
full advantage of the Internet, we need "broadband" connections -- fatter
pipes to handle the crush of information and complex applications now
available." Chairman Kennard recognizes the calls for 'open access' to cable
broadband networks and the recent decisions in Portland and Broward County,
Florida to use local franchise authority to open AT&T's cable networks.
Kennard continues by stating why the FCC filed a friend-of
the court-brief in the Portland case regarding open access. But he argues
that we cannot regulate against problems that do not exist yet. He suggests
a non-regulatory route to ensuring the fast
deployment of broadband: "we [the FCC] are taking steps to ensure that there
are many competitors in the marketplace, not just cable. We've made more
spectrum available to wireless operators. We've made it easier for emerging
competitive local phone companies to plug into the existing phone network in
order to provide high-speed Internet access using a promising new technology
known as digital subscriber lines. And we've decided to allow the cable
companies to go ahead with their efforts to deploy broadband access without
pre-emptive regulation, even as we closely monitor the marketplace for
anti-competitive behavior." Chairman Kennard argues that this policy is
working: in the 2nd quarter of this year, the number of DSL subscribers
doubled. "Internet users want and expect choice, and they will not be
satisfied unless they get it. A national policy of openness and competition
has brought it to them so far; it should be our policy for the future as well."
[SOURCE: Wall Street Journal, A18, AUTHOR: FCC Chairman William Kennard]
(http://interactive.wsj.com/articles/SB935445231530013851.htm)

EARTHLINK AND GTE IN WEB-ACCESS DEAL
Issue: Broadband
In a move to expand high-speech access to the Web, the Internet service
provider Earthlink and GTE have entered into a joint venture to offer DSL
(digital subscriber line) service in over 20 markets by the end of the
year. DSL technology, which operates over traditional phone lines, gives
users access at speeds up to 25 times faster than is possible with dial-up
modem connections. At around $50, DSL subscriptions are increasingly
popular. "We're seeing a trend of existing users moving towards high-speed
access," Jon Irwin, Earthlink senior vice president of broadband services.
[SOURCE: New York Times (Online), AUTHOR: Reuters]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/24earthlink.html)

CHINESE CABLE TV PLANS LEAP INTO INTERNET
Issue: International/Broadband
Fang Hongyi, of the Chinese State Administration of Radio Film and
Television (SARFT), said that his agency would challenge a monopoly by
telephone companies on Internet service by offering high-speed access over
cable television networks. "We're going to take the Chinese people into the
Internet age in one shot," said Fang. He did, however, concede that there
were giant political and financial barriers that need to be over
surmounted. Most difficult perhaps, it will need approval from the Ministry
of Information Industry (MII) -- the telecommunications monolith whose
territory the plan threatens. The plan does have some things in its favor,
including the fact that there are 80 million cable subscribers in China.
The new service would address the two most common complaints by China's
Internet users -- high fees and slow connections, Fang said.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/026956.htm)

ADMINISTRATION APPOINTS E-COMMERCE ADVISER
Issue:Ecommerce
Elizabeth B. Echols, a 39-year-old attorney and former investment banker,
has been named executive director of the Electronic Commerce Working Group,
a federal interagency task force. The working group was created by President
Clinton's former Internet czar, Ira C. Magaziner. It is chaired by Vice
President Gore's chief domestic policy advisory, David Beier. "My job is
really to coordinate the numerous agencies that are involved," Echols said
of her new role. "There are at least 12 federal agencies that are working in
electronic commerce. The idea is to have one central place at the White
House where we can work together and shape one Administration policy.
Obviously, the different agencies will bring their expertise and mandates to
the table. We want to make sure we have one coordinated, cohesive policy."
Policy priorities include broadband, consumer protections online and
creating a global e-commerce framework.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing (jeri( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/08/cyber/capital/24capital.html)

INFO CULTURE: IT ALL ADS UP
Issue: Internet Advertising
What once was idealistically envisioned as a kind of global public square,
Keller writes, instead has become just another giant billboard, with
non-advertising material crowded into ever smaller spaces. The big problem
is the eagerness for non-commercial sites to join the ad parade. "Yes, most
people are savvy enough to figure out the difference between editorial
content and advertising," Keller writes. "The point is, though, that they
shouldn't have to; the two realms ought to remain separate. Some spaces, in
fact, should remain ad-free altogether, and a university's informational Web
site is one of those spaces. Advertisers will have plenty of time later on
to etch their catchy mantras onto the cerebellums of ever-so-willing
students." Keller quotes Oscar Wilde by ending: we now know the price of
everything and the value of nothing.
[SOURCE: Chicago Tribune (Sec 5, p.3), AUTHOR: Julia Keller]
(http://chicagotribune.com/leisure/tempo/printedition/article/0,2669,SAV-990
8240039,FF.html)

FEATURE FILM TO BE PRODUCED FOR DIRECT RELEASE ON THE WEB
Issue: Arts
Metafilmics, a four-year-old studio that specializes in spiritual
entertainment, may be the first company to produce a film that will be
initially released on the Web. The company has plans to distribute a 40
minute film, "The Quantum Project," through Sightsound.com, a Web site that
provides downloadable movies for a fee. Several start-ups are attempting to
offer films though the Internet, but technology still has some way to go.
Full-length movies can take hours or days to download and the picture
quality leaves much to be desired. There is hope that as broadband
Internet connections become more ubiquitous, those problems will be
alleviated and filmmakers will have a viable new outlet for their products. .
[SOURCE: New York Times (A1), AUTHOR: Andrew Pollack]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/24film.html)

TELEPHONY

SBC COMMUNICATIONS TO LAUNCH PHONE-SERVICE 'BUNDLES' IN TWO MARKETS TO
COMPETE WITH AT&T
Issue: Competition
In a move that exemplifies the change to a competitive market in the area
of local telephone service, SBC Communications will launch bundled
communications packages in specific areas to compete with AT&T. For
example, in Fremont, California, AT&T has begun selling local and long
distance services over its cable lines. SBC is now responding with a
package including DirecTV along with its phone services that will save
customers 6%-35%, if they had purchased those services separately. Two
markets in Dallas are being introduced today to an SBC bundled package
which offers 1) two phone lines, 2) DirecTV satellite television, 3)
discounted local toll calling, wireless calling and dial up Internet
service, 4) thirteen add-on features like voice mail and caller ID and 5)
inside wire maintenance on both lines -- all for $137. SBC packages miss
one service that the AT&T packages have: long distance. The Bell operating
companies cannot get into the long distance market until they have proved
there is competition within local phone service.
[SOURCE: Wall Street Journal, B8, AUTHOR: Stephanie N. Mehta]
(http://interactive.wsj.com/articles/SB935452681561330110.htm)

PHONE WARS
Issue: Telephony
[Op-ed] Although long-distance phone companies have multiple "rate plans"
that include cheaper alternatives, many customers are paying higher
rates. Nearly 25% of AT&T's phone traffic is billed at the maximum rate.
The use of multiple rate plans is said to offer customers more choice, but
instead often makes it difficult for customers to compare prices and shop
around for the best deal. The ability of customers to compare rate plans
would lead to a drop in cost and subsequently a decline in the phone
companies' profits. Consumers need to demand the lowest available rate from
their phone company, review their phone bills, balk when their carrier
tinkers with rates and frequently compare carrier rate plans. Regulation of
long distance carriers, including simple monthly billing and
government-guaranteed rates, would benefit consumers. Contrary to what the
telephone companies would have customers believe, the decline in the price
of long-distance calls has been a function of technology, not necessarily
competition.
[SOURCE: Washington post (A17), AUTHOR: Robert Kuttner, co-editor of the
American Prospect]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-08/24/022l-082499-idx.html)

COMPANIES TEAM ON WIRELESS STANDARDS
Issue: Wireless
A new industry group is being formed to develop standards for wireless
computer networks. Lucent Technologies, Nokia and 3Com are among the
companies that have joined together to found the Wireless Ethernet
Compatibility Alliance (WECA), which hope to make it less risky for
consumers and network operators to invest in expensive wireless equipment.
The industry is eager to develop more dependable links to local wireless
network everywhere. According to a press statement, WECA "will enable true
multi-vendor interoperability by certifying that systems from different
manufacturers can be used within the same wireless infrastructure."
[SOURCE: New York Times (Online), AUTHOR: Associate Press]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/24wireless.html)

TELEVISION

NONPROFITS COURTING DBS FOR SET-ASIDE CHANNELS
Issue: Satellite TV
By orders of the Federal Communications Commission, direct broadcast
satellite providers must allocate 4% of the number of channels they provide
for noncommercial educational programming. This new public interest
obligation was adopted last fall and must be fulfilled by December 15.
Exactly how many channels this will mean for educational purposes is
unknown, as the two largest operators, DirecTV and Echostar, have not
decided exactly how many channels they will offer. The number could be
anywhere between 8 and 20 depending on how many the companies choose to
transmit. As permitted by the FCC, DBS providers will charge the
noncommercial educational programmers for half of the direct costs they
incur, which include labor costs associated with uplinking feeds,
authorizing viewers to receive the channels and incremental costs of
compression equipment. Many entities have applied to be a set-aside
noncommercial educational station, but many may not have the money or
technological capabilities to stay functioning.
[SOURCE: Current (p.1), AUTHOR: Karen Everhart Bedford]
(http://www.current.org/)

PUTTING THE LID ON CABLE?
Issue: Cable/Ownership
AT&T's planned takeover of MediaOne Group hinges on the FCC relaxing
industry ownership rules. FCC staffers are planning to send recommendations
to the commissioners before the agency's Sept 15 meeting. Previously the FCC
has refused to revamp its attribution rules. The current regulations
prohibit multiple system operators (MSOs) from controlling cable TV lines
passed to more than 30% of US homes. The acquisition of MediaOne would raise
AT&T's stake in systems passing 61 million homes (64%), serving 37 million
(55%) subscribers. However, since the FCC does not currently count all
investments, AT&T expects the FCC to attribute to it 47% of homes passed
after calculating the purchase of MediaOne and the sale of other systems,
which would still be over the 30% limit. The FCC has indicated it will give
cable at least one break and base an MSO's ownership on the percentage of
all multichannel subscribers (including DBS customers) rather than on the
number of homes passed, which would increase the number of households an MSO
can reach.
[SOURCE: Broadcasting & Cable (p.6), AUTHORS: Bill McConnell and John M.
Higgins]
(http://www.broadcastingcable.com/)

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

Communications-related Headlines for 8/23/99

INTERNET PRACTICE
Corporations Battling to Bar Use of E-Mail For Unions (NYT)
NetDestinations: Classes, Books, Teachers' Dirty Looks (SJM)

INTERNET
Multimedia Transmissions Are Driving Internet Toward Gridlock (NYT)
Internet Address Firm Receives 2 Loans But Says It Still Needs
$1 Million More (WSJ)
First Out of the Starting Gate (NYT)

INFRASTRUCTURE
Patents: Marrying Cellular Technology to Power Lines (NYT)
Digital Subscriber Lines Are the Latest Internet Wave, But Baby Bells
Aren't Making the Connection Quickly (WP)

MERGERS
PSINet to Acquire transaction Network (WSJ)

LIFESTYLES!
Internet Study Finds 6 Percent Of Users Are Addicts (SJM)

INTERNET PRACTICE

CORPORATIONS BATTLING TO BAR USE OF E-MAIL FOR UNIONS
Issue: Online Activism
A look at labor organizing and use of corporate email systems. Employees
using these systems have been suspended from their jobs as companies claim
mass mailings like this are personal business. The suspensions have made
other union officials wary of using corporate email systems. Cohen reports:
E-mail has become common in many workplaces that unions are eager to
organize, including those at software companies and in other high-technology
industries. And unions have found it an unusually effective organizing tool,
one that combines the intimacy of a conversation, the efficiency of
mass-produced leaflets and the precision of delivery by mail to work forces
that are often widely dispersed. "It saves time, it saves money," said
Michael Blain of the Washington Alliance of Technical Workers, or WASHTECH,
an affiliate of the Communication Workers of America that is trying to
organize software workers in the state of Washington. "We can reach 1,300
people by just hitting 'send.'" The corporate view of mass email from
outside the organization should be considered trespassing. And any
organizing email is likely to be read on company time, a practice they
believe labor law should prohibit. "E-mail from unions does interfere with
employers' expectation that work time is for work," said Frank Morris, a
lawyer who represents management in labor disputes. "The unions are trying
to make extraordinary use of a tool that didn't exist until recently for
their benefit."
[SOURCE: New York Times (C1), AUTHOR: Noam Cohen]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/23unio.html)

NET DESTINATIONS: CLASSES, BOOKS, TEACHERS' DIRTY LOOKS
Issue: EdTech
As a American school children return to the classroom this fall, the U.S.
Department of Education is mounting an "America Goes Back to School"
campaign that includes a Web site (http://www.ed.gov/Family/agbts)
providing ideas for parents and communities to get more involved in
education. "It's a sort of a wake-up and get-involved message to business,
community groups, parents, religious organizations and arts groups,"
department spokeswoman Sarah Staley. "We all have a role to play in
education." Some companies, like Hewlett-Packard, have also developed
education focused Web sites that are aimed at parents, teachers and
students. In cooperation with Scholastic Inc. and American Education
Publishing, Hewlett-Packard's HP Digital Book Club site
(http://www.hpdbc.com), was designed to help boost literacy among
elementary school pupils. "What we're trying to do with this site is help
teachers and parents, and even kids understand how to integrate technology
with educational curriculum," said Jill Kramer, who oversees the site for H-P.
[SOURCE: San Jose Mercury News, AUTHOR: Jonathan Oatis (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/778132l.htm)

INTERNET

MULTIMEDIA TRANSMISSIONS ARE DRIVING INTERNET TOWARD GRIDLOCK
Issue: Internet Infrastructure
Streaming media is causing data traffic jams on the Internet. "People
writing software for that traffic -- they don't care," said Van Jacobson,
chief scientist for Cisco Systems of streaming media. "In the long term,
it's a problem." When computers sending conventional data encounter
congestion, they significantly slow their transmission rate. But computers
sending streaming data will only reduce their data flow slightly, assume
right of way and cause other data traffic to pile up. There's no incentive,
Jacobson says, for streaming media providers to comply with polite traffic
rules, "if Real Networks is polite and Microsoft isn't, then Real looks
crummy." Streaming media services today don't look so great anyway, mostly
because of slow modem speeds at the users' end. But as cable modems and DSL
services become more widely available and used, demand for streaming media
could cause Internet gridlock, called "congestion collapse."
[SOURCE: New York Times (C1), AUTHOR: Sara Robinson]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/23tcp.html)

INTERNET ADDRESS FIRM RECEIVES 2 LOANS BUT SAYS IT STILL NEEDS $1 MILLION MORE
Issue: Internet
Internet Corporation for Assigned Names & Numbers (ICANN) has more than
$800,000 in debt. ICANN is the nonprofit organization set up by the U.S.
government to introduce competition into the business of registering
Internet addresses and to help new companies compete against Network
Solutions, to which the government once gave control over the business of
registering all Internet addresses ending in ".com," ".net" and ".org.".
But ICANN receives no government funding. The Clinton administration left
it up to ICANN's board to determine how it would derive revenue to support
its $5.9 million annual budget. The board at ICANN decided to charge a $1
fee for each new domain name registered, but people complained it was an
Internet tax and Congress forced ICANN to scrap the plan. The organization
said it received unsecured loans of $500,000 from MCI Worldcom and $150,000
from Cisco Systems. ICANN also said it needs $1 million more to pay debts
and to operate through November. The organization's chief executive, Mike
Roberts, said the group is in discussions with at least four other major
high-tech companies for more funding to keep them running. [Mike Roberts?
The guy from NYPD Blue?]
[SOURCE: Wall Street Journal, B5, AUTHOR: John Simons]
(http://interactive.wsj.com/articles/SB935361493313346182.htm)

FIRST OUT OF THE STARTING GATE
Issue: Internet Domain Names
Register.com is the first and most aggressive competitor for Network
Solutions (and the companies 6-year old monopoly on Internet address
registrations). Some 250 companies are expected to eventually to enter the
field, making it a risky venture even by the Internet's standards.
Register.com is already calling itself the 2nd largest Internet registrar in
the world and, because of delays caused by ICANN and Dept of
Commerce/Network Solutions negotiations, has a time advantage before many
more companies are allowed to compete. The company has partnerships with 20
companies, including Staples and Mastercard, giving Register.com links on
their Web sites and offering services related to building a Web site.
[SOURCE: New York Times (C3), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/23net.html)

INFRASTRUCTURE

PATENTS: MARRYING CELLULAR TECHNOLOGY TO POWER LINES
Issue: Wireless/Infrastructure
In many nations in Africa, Asia and the Middle East, phone service remains a
luxury. Governments in such nation's have given priority first to providing
electrical power to their citizens. This could, however, prove to be a
telecommunications solution. Maryland inventor Paul Kline has come up with a
system that takes advantage of the electrical power infrastructure. His
invention marries conventional power lines with cellular technology and
standard telephone equipment to bring phones, fax machines and computer
modems into homes and businesses that have no telecommunications wiring.
Kline calls it a wireless local loop distribution system. Kline has received
patent 5,937,342; patents can be viewed on the Web at (www.uspto.gov).
[SOURCE: New York Times (C2), AUTHOR: Sabra Chartrand]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/23pate.html)

DIGITAL SUBSCRIBER LINES ARE THE LATEST INTERNET WAVE, BUT BABY BELLS
AREN'T MAKING THE CONNECTION QUICKLY
Issue: Infrastructure/Competition/Broadband
TeleChoice, a telecommunications consulting firm, released a study that
found that 81% of Covad Communications and NorthPoint Communications digital
subscriber line (DSL) subscribers are businesses. On the other hand, only
16% of the Baby Bells' DSL customers are businesses. The study shows that
Baby Bells must get on the DSL bandwagon or have that business lost to
DSL-specific companies that are already penetrating the market. For example,
Bell Atlantic offers DSL service in only six metropolitan areas on the East
Coast. UUNet's DSL service is available in more than 20 markets nationwide.
Another player in the broadband game is cable operators. While DSL service
is expanding five times faster than the cable modem option, TeleChoice
found, cable modem operators have more than 800,000 cable lines readied for
high-speed Internet delivery. DSL providers also must deal with signal fade
as transmission distances increase -- so customers must be located roughly
within three miles of a phone company's neighborhood central office, where
all the copper phone lines come together. Residential DSL charges range from
$40 to $60/month and business DSL subscription can range from as low as $130
a month to $600 monthly.
[SOURCE: Washington Post (F05), AUTHOR: Shu Shin Luh]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-08/23/027l-082399-idx.html)

MERGERS

PSINET TO ACQUIRE TRANSACTION NETWORK
Issue: Merger
PSINet, an Internet-service provider, agreed to
acquire Transactions Network Services for $705 million. This move could
give PSINet an important standing in the electronic-commerce arena. The
majority of Transaction Network's revenue comes from providing network
services at the point of sale, such as credit card and calling card
transactions. But the company is also becoming a significant player in
providing authorization services for Internet transactions, handling eight
million electronic-commerce purchases just in July. "Our intent is to
provide businesses everything they need for electronic-commerce
infrastructure for the 21st century," William L. Schrader, chairman and
chief executive officer. "This gives us a solution customers have been
crying out for." PSINet has focused on providing Internet access to
business customers and has expanded aggressively into overseas markets,
purchasing a number of smaller Internet-service providers in Latin America
and Europe.
[SOURCE: Wall Street Journal, B5, AUTHOR: Nikhil Deogun and Thomas E. Weber]
(http://interactive.wsj.com/articles/SB93537380940503806.htm)

LIFESTYLES

INTERNET STUDY FINDS 6 PERCENT OF USERS ARE ADDICTS
Issue: Internet Demographics
"Marriages are being disrupted, kids are getting into trouble, people are
committing illegal acts, people are spending too much money," said
therapist David Greenfield. What vice is he speaking of? It is nothing
other than the Internet that can cause such destruction. Almost 6% of
Internet uses are addicted to it, according to a study released at the
annual meeting of the American Psychological Association. The study,
carried out jointly with ABC News, involved the collection of 17,251
responses to an Internet use questionnaire distributed and returned through
the Web site ABCNEWS.com. The study "adds a layer of legitimacy to the
concern that Internet addiction is real," commented Kimberly Young, a
pioneer in this new field of research.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/002199.htm)

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

Communications-related Headlines for 8/20/99

DIGITAL DIVIDE
Spanning the 'Digital Divide' (WP)

OWNERSHIP
NBC Holds Talks to Buy an Interest In Paxson Following FCC Rules
Change (WSJ)
U.S. Investors Are Tuning In For Deutsche Telekom Sale (WSJ)

TELEPHONY
So, How Much For Ratepayers? (ChiTrib)
PC's Taking Growing Share of Phone Service (USA)
Nextel Reaches Pact with Government to Buy Next Wave Licenses (WSJ)

INTERNET
SBC To Offer E-mail Device That Needs No PC
E-Commerce Group Forms To Battle Internet Fraud (WSJ)
Report Questions Government Efforts Computer Crime (Cybertimes)

LEGISLATION
High-tech hypocrisy on visas, Y2K legislation (SJM)

DIGITAL DIVIDE

SPANNING THE 'DIGITAL DIVIDE'
Issue: Digital Divide
[Op-Ed] The recent announcement of a $35 million dollar venture to create
BET.com -- a portal oriented to African Americans -- has left some people
wondering: are there enough blacks on the Net to make it work? The recent
Commerce Department study, "Falling Through the Net" -- which reported that
47 percent of whites own computers, more than twice the rate for blacks --
raises the question of whether BET can have the success on the Internet as
it has had on TV, if black computer ownership continues to lag. Founder of
the BET network Bob Johnson, says Rasberry, is aware of the racial
"digital divide." Johnson is also aware of the growing number of efforts
to combat it, and his site will help get African Americans to get online and
join the Information
Revolution .
[SOURCE: Washington Post (A35), AUTHOR: Willaim Rasberry]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-08/20/010l-082099-idx.html)

OWNERSHIP

NBC HOLDS TALKS TO BUY AN INTEREST IN PAXSON FOLLOWING FCC RULES CHANGE
Issue: Ownership/Broadcast
General Electric's NBC broadcast network is reportedly negotiating to
purchase a stake of the Paxson Communications, the upstart television
network. People close to the deal say that NBC may buy a 32% stake in the
company, which would be worth more than $300 million at Paxson's current
stock-market price. Analysts believe NBC may use Paxson stations as leverage
in negotiations with current affiliates. NBC President Robert Wright has
threatened to convert NBC from broadcast to cable in cities where the
network can't negotiate an acceptable financing deal with its local
affiliate. NBC and Walt Disney's ABC are trying to revamp their contracts
with affiliates to force them to shoulder more of the network's programming
costs.
[SOURCE: Wall Street Journal, A3, AUTHOR: Kyle Pope]
(http://interactive.wsj.com/articles/SB935105063399057334.htm)

U.S. INVESTORS ARE TUNING IN FOR DEUTSCHE TELEKOM SALE
Issue: Ownership/Cable/International
U.S. investors are getting ready to buy into Deutshe Telekom's cable
network, which is one of the largest in the world. The cable network's
estimated value is $10 billion and serves about 17 million homes. An
estimated upgrade for the networks to offer broadband services is estimated
at $2.5 billion. Microsoft is in talks to partner with Deutsche Bank and
bid for the German cable properties. Another player is former the president of
US West's International Operations, Richard Callahan. He is partnering with
several financial backers and would run the company if they win. Other
bidders include Mannesmann, German newcomer Viag Interkom, Robert Bosch and
United Pan-European Communications (which is 7.8%-owned by Microsoft but
isn't part of the current Microsoft negotiations). Initial bids are due today.
[SOURCE: Wall Street Journal, AUTHOR: Gautam Naik and William Boston]
(http://interactive.wsj.com/articles/SB935102274936234921.htm)

TELEPHONY

SO, HOW MUCH FOR RATEPAYERS?
Issue: Mergers
When the $60 billion SBC-Ameritech merger was first announced, Ameritech
shareholders learned that they would be paid a $13 billion premium. Now 3 of
5 Illinois Commerce Commission commissioners agree that all of the savings
generated by the merge should go to the ratepayers who paid to build
Ameritech's system. The question, then, will be: how much? The savings are
expected to stem from combining administrative, legal, operating and other
functions of the two telephone companies to eliminate waste and heighten
efficiencies. [Wonder how much they will save by not having to compete
against one another?] Parties filing comments on the case have estimated the
savings as low as $30 million and as high as $473 million. Today, the ICC
commissioners are expected to discuss what conditions on the merger they
might impose; Chairman Richard Mathias hopes to reach a consensus, write and
vote on an order before Labor Day. The FCC is also reviewing the merger and
is plans to act by early September.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99082001
95,FF.html)

PC'S TAKING GROWING SHARE OF PHONE SERVICE
Issue: Internet Telephony
Yet another alternative to regular phone service is coming of age as people
are using their PC's to make free telephone calls to other PC users. "The
regular phone network is going to be pressured to lower rates or do away
with the concept of long distance," says Alan Buck of PhoneFree.com.
PhoneFree.com has a no-cost service and has 700,000 users. International
Data Corporation says these free PC phone service are expected to generate
$500 million in revenue this year and is expected to reach $18 billion in
2004. Earlier versions operated like walkie-talkies where only one person
could talk at once -- but now the technology handles calls just like a phone.
Another boost for the technology is that Internet connections are faster so
the sound quality is comparable to traditional phone service.
To make these Internet calls, both people need a PC with a microphone,
speakers, special software and an Internet connection. Other companies
offering the service and products is VocalTec (www.vocaltec.com/products)
and Net2phone (www.net2phone.com).
[SOURCE: USA Today, 1A, AUTHOR: Steve Rosenbush]
(http://www.usatoday.com)

NEXTEL REACHES PACT WITH GOVERNMENT TO BUY NEXT WAVE LICENSES
Issue: Wireless
Nextel Communications, a wireless phone company, outlined an agreement
negotiated with the Federal Communications Commission and the Department of
Justice to buy the wireless licenses of NextWave Telecom. NextWave, a
Hawthorne, N.Y. company, filed for bankruptcy protection in June 1998. The
FCC auctioned off licenses to the spectrum Nextwave owns in 1996. Some of
the licenses were set aside for what the FCC called "designated entities,"
or small, entrepreneurial companies. Most of NextWave's licenses fall under
this classification. But NextWave could not come up with the money it bid
for the licenses. Details of the agreement between Nextel, the FCC and the
DOJ were outlined in Securities and Exchange Commission filings that Nextel
made Wednesday. Under the agreement, the FCC would receive at least $2.1
billion for the wireless spectrum. The payment would include a $1.59
billion minimum cash payment and $499 million in deposits made by or on
behalf of NextWave's debtors. Should another bidder top Nextel's offer,
Nextel would receive a termination fee equal to 0.75% of any competitive
bid accepted by the FCC and Justice Department, the filing said. NextWave
opposes Nextel's deal because it would give Nextel licenses that were set
aside for small companies.
[SOURCE: Wall Street Journal, B3, AUTHOR: Nicole Harris]
(http://interactive.wsj.com/articles/SB935105887117276456.htm)

INTERNET

E-COMMERCE GROUP FORMS TO BATTLE INTERNET FRAUD
Issue: E-commerce/Security
Analysts estimate fraudulent Internet and electronic-commerce transactions
now account for as much as half of all credit-card fraud (so, a super squad
of mystery men has banded together to make cyberspace a safe place to shop).
HNC Software Inc. has enlisted five providers of e-commerce services, an
Internet Fraud Prevention Advisory Council, help with an effort to convince
other online merchants to participate in HNC's anti-fraud efforts. The
Advisory Council also includes CyberCash, ShopNow.com, Ebit.Net and Signio
Inc. (formerly PaymentNet). For transactions in the physical world, HNC has
long had reciprocal relationships under which credit-card issuers, such as
banks, provide HNC with transaction records from more than 260 million
accounts. The data are added to a massive database that is used to build
detailed profiles of fraudulent activity. Each potential transaction is then
given a score from one to 1,000 that indicates the probability of fraud.
Merchants set their own thresholds for accepting or rejecting transactions,
or for seeking additional information from customers. HNC expanded its
services into cyberspace in May.
[SOURCE: Wall Street Journal, B3, AUTHOR: David Bank]
(http://interactive.wsj.com/articles/SB935105291846841312.htm)

SBC TO OFFER E-MAIL DEVICE THAT NEEDS NO PC
Issue: InfoTech
SBC said yesterday that the company will offer a new e-mail device, called
eMessage. The device is inexpensive and will allow people without a PC to
use e-mail. eMessage is a ten inch by seven inch machine, resembling a hand
held computer that attaches to the phone line the same way an answering
machine does. The device costs under $180 and e-mail service will cost
$10/month -- and could be even less if customers prepay. Messages can be
read and created offline and then sent by hooking up to the phone line in
under a minute. eMessage was developed by CIDCO, the largest maker of caller
identification devices. Kevin Hause, an International Data Corporation
analyst, said that this device could complement the PC as well -- because
people would not have to reboot their computers just to send a message. SBC
said they would test eMessage in Texas and California next month and then
expand to its other customers.
[SOURCE: San Jose Mercury News, AUTHOR: Ilaina Jonas]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/770934l.htm)

REPORT QUESTIONS GOVERNMENT EFFORTS COMPUTER CRIME
Issue: Security
Despite some recent high profile arrests and convictions for computer
criminals, some experts question the government's ability to track and
prosecute high-tech crime. "We are hearing a lot of discussion from this
administration about the problem of computer crime," said David Banisar, a
lawyer who specializes in computer law "But that high level of concern does
not mesh well with the actual number of investigations and prosecutions." In
a recent article on prosecutions of high-tech crime in Criminal Justice
Weekly, Banisar reported that of the 417 cases of computer fraud referred to
federal prosecutors, the government only chose to prosecute 83, or 20%.
Banisar noted that well over 50% of all criminal cases referred to the
Government were chosen for prosecution. In defense of the Government's
record, David Green, deputy chief of the Computer Crime and Intellectual
Property section of the Department of Justice, explained that the
statistics on computer crime "can be misleading." Many cases referred to
federal attorneys as computer crimes are eventually prosecuted under
different laws, like wire fraud or child pornography, and therefore would
not show up as a "computer fraud" prosecution, and still other cases are
turned over to state authorities, said Green. "These cases are really
challenging, but I think we are making tremendous progress," he said.
[SOURCE: CyberTimes, AUTHOR: ]
(http://www.nytimes.com/library/tech/99/08/cyber/cyberlaw/20law.html)

LEGISLATION

HIGH-TECH HYPOCRISY ON VISAS, Y2K LEGISLATION
Issue: Legislation
(Editorial) Most days, government regulations are the favorite punching
bags of the high-tech industry. Except, that is, when they are looking for
a federal favor. One recent example is the industry's push for an increase
in the number of H-1B visas allowed for foreign workers -- to help combat
current labor shortages. Gilmore suggests that qualified high-tech
workers should be granted visas to work in the U.S., but that tech industry
should be expected to give back something in return: "a promise, backed by
real money, to help train and retrain the Americans who have the smarts and
will to do these jobs." None of the current legislation lobbied for by
high-tech firms, however, include any such provisions. Recent Y2K
legislation, notes Gillmore, also favors industry interest over that of
consumers, protecting vendors from liability for Y2K problems. "It all
makes you wonder: What would the technology crowd do without government
interference?" he concludes.
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
(http://www.mercurycenter.com/svtech/columns/gillmor/docs/dg082099.htm)

--------------------------------------------------------------
...and we are outta here. Have a great weekend.

Communications-related Headlines for 9/19/99

INTERNET
Farmer's Internet Use Jumps (SJM)
Some Light Through The Portal (WP)
Keeping Up With All the News Back in Anytown, U.S.A. (NYT)

PRIVACY
Intel To Make Web Sites Add Warnings (SJM)

TELEPHONY
Merger's Reckoning Nears (ChiTrib)
Bell Atlantic's Long-Distance Bid May Spur Local-Phone Rivalry (WSJ)
AT&T Files Complaints with States Accusing U S West of Service
Lapses (WSJ)

ED TECH
Wired on Campus E-Life (USA)

BROADCASTING
Eclectic Little Radio Stations Deserve Spots on the Airwaves (USA)
Media Talk: Channel 2 Sued Over Ad Campaign (ChiTrib)

E-COMMERCE
Ireland Positioning Itself To Be An E-Commerce Hub (SJM)
Fed Approves Plan to Allow Banks To E-Mail Customers' Statements (WSJ)

WIRELESS
Too Many Phones, Too Little Service (NYT)

EMPLOYMENT
McCin Joins In Visa 'Frenzy' (SJM)

INTERNET

FARMER'S INTERNET USE JUMPS
Issue: Internet
Twice as many farmers are on the Internet today than just three years ago.
According to a June survey by the Agriculture Department's Agricultural
Statistics Service, the number of farmers online has jumped from just 13%
in 1997 to 29% in 1999. "Getting information this way is so much easier,"
said farmer Lyle Samuelson. "It's something you can sit and do early in the
morning, and it only takes a few minutes." For many, it is becoming an
important means for sharing and gathering information. "A lot of farmers
out there have e-mail now, and it certainly makes it a very easy and useful
way of exchanging information," said Tim Bryan, a fourth-generation farmer
near the small town of Bowbells. Increasingly, farmers are also using the
Internet for purchasing products ranging from chemicals and fertilizers to
tractors and combines.
[SOURCE: San Jose Mercury News, AUTHOR: John MacDonald (Associate Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/767501l.htm)

SOME LIGHT THROUGH THE PORTAL
Issue: Internet
With all the talk about Web portals, some people are left wondering "What
exactly is a 'portal'?" Generally a portal is considered an entrance or
gateway to Web -- sites likeYahoo.com that helps people get to where they
are going online. In addition to the general portal sites such as Yahoo,
Lycos and Go, there are now an increasing number of specialty portals that
are focused on a specific topic, audience or geographic location. As the
Internet has grown in size and complexity, so have portals. They started as
Web indexes pointing outward, but have since devoted much of their focus to
trying to get users to stay. Over the past few years, portals have
established countless features - such as free e-mail, chat and stock
portfolios -that are intended to keep viewers longer to generate more
advertising revenue. Some analysts are convinced that the large general
portals' services are becoming indistinguishable from each other and will
soon be ghost towns as people flock to specialty sites that cater to
individual interests. It is possible, however, that like giant department
stores, people will always have a need for the one-stop-shopping offered by
all-purpose portals.
[SOURCE: Washington Post (E1), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-srv/business/feed/a16860-1999aug19.htm)

KEEPING UP WITH ALL THE NEWS BACK IN ANYTOWN, U.S.A.
Issue: Online Newspapers
"We had to stop viewing ourselves as a newspaper company and view ourselves
as an information company," said Mark Hamilton, who publishes the The Iowa
Falls Times-Citizen (www.iafalls.com), a twice-weekly publication with a
circulation of 4,000. The Iowa Falls Times-Citizen went online three years
ago.
"This is important for small towns," said Hamilton. Small community
dailies and weeklies around the country are going online. But with small
staffs and tight budgets, they are doing so cautiously. "Some are making
money, some are losing their shirts, some aren't doing it because they are
afraid they will lose their shirts,"
said an industry consultant. See the URL below for opinions from executives
at small newspapers around the country.
[SOURCE: New York Times (D9), AUTHOR: Debra Nussbaum]
(http://www.nytimes.com/library/tech/99/08/circuits/articles/19pape.html)

PRIVACY

INTEL TO MAKE WEB SITES ADD WARNINGS
Issue: Privacy
Intel, in a move to deter government regulation, has announced that it will
require Internet sites that it advertises on to warn consumers about the
personal details that are being collected about them online. By Jan. 1
2000, the company will require that all of the roughly 200 "Intel Inside"
sites comply with privacy guidelines developed by the Online Privacy
Alliance, a trade group of companies on the Web. The OPA guidelines require
Web sites to tell consumers what information is being collected, keep
private details secure, allow consumers to review their information for
accuracy and correct it, and allow people to ask not to have any
information gathered about them. "Web sites will know they won't get
advertising dollars unless they protect consumers' privacy," said Vicki
Streitfeld, a spokeswoman for the FTC. "It's the kind of thing we hope will
create strong incentives to create their own privacy policies." David
Banisar of the Washington-based Electronic Privacy Information Center,
however, said the OPA guidelines themselves are "virtually worthless"
because they "set up procedural barriers that consumers have to hop over to
have some kind of marginal control over their information."
[SOURCE: San Jose Mercury News, AUTHOR: Ted Bridis (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/767772l.htm)

TELEPHONY

MERGER'S RECKONING NEARS
Issue: Mergers
An evaluation of how the vote may pan out on the SBC-Ameritech merger in
Illinois: Two Illinois Commerce Commission commissioners seem ready to vote
to approve the merger, two seem ready to vote against it. Only Chairman
Richard Mathias' vote appears uncertain. The ICC will resume hearings on the
merger this week. Van thinks Chairman Mathias has shown the phone giants the
path to approval, but has not told them how far along they must walk down it
to gain his vote. Last week, ICC hearing examiners proposed an order
approving the merger while boosting the amount Illinois customers would see
in local phone bill reductions. SBC is not pleased: "We appreciate the hard
work by the hearing examiners, and their recommendation that the ICC approve
the merger," said James Ellis, SBC's executive vice president and general
counsel. But he said his company wants the full commission to strip rate
reductions as well as some conditions intended to promote competition from the
final order the. "They act as if you can barter away conditions attached
to the merger in a trade with savings," said Adam Bottner, supervisor of
regulatory affairs for the Cook County state's attorney's office. "State law
provides these protections to consumers, and they can't be bartered away. I
think SBC's stance on what ratepayers are entitled to amounts to gaming the
system." Chairman Mathias has warned that he would vote against the merger
if he finds that SBC has been "gaming the system."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/tech/news/article/0,2669,ART-33210,FF.html)

BELL ATLANTIC'S LONG-DISTANCE BID MAY SPUR LOCAL-PHONE RIVALRY
Issue: Telephony
Even though local telephone competition hasn't begun to reach the levels
envisioned by lawmakers when they passed the Telecommunications Act of 1996
-- Bell Atlantic is expected to seek permission to offer long-distance
service in New York State next month. If approved, it could make the Bell
Atlantic the first Bell operating company to enter the long-distance
market. Bell Atlantic said it has completed a series of tests that prove
its networks are open to competitors. Some long-distance carriers have
already begun offering local service in New York. MCI Worldcom says it has
been offering local services to its NY residential customers since February
and that it is serving more than 154,000 residents. AT&T is testing local
service in NY and RCN has started service in some areas. But rivals say
Bell Atlantic still hasn't met the conditions for long-distance entry. "We
still don't have parity," an AT&T spokesman said. An MCI WorldCom
spokeswoman said the Bell still doesn't have a process for informing
competitors when it upgrades its systems, causing computer problems for
rivals that need access to its network. The Telecommunications Act of 1996
intended to force open local phone markets by requiring the Bells to make
it easier for rivals to get access to local telephone networks in exchange
for permission to offer long-distance services in their home territories.
Today, business customers in major markets typically have a choice of local
telephone carriers, but residential customers remain largely connected by
incumbent telephone carriers. New York State utilities regulators will hold
a meeting August 31st to hear final comments on the company's
market-opening initiatives.
[SOURCE: Wall Street Journal, B6, AUTHOR: Stephanie N. Mehta]
(http://interactive.wsj.com/articles/SB935022118102679735.htm)

AT&T FILES COMPLAINTS WITH STATES ACCUSING U S WEST OF SERVICE LAPSES
Issue: Telephony
AT&T Wednesday called on state regulators in Arizona, Colorado, Minnesota,
New Mexico and Washington to require U S West to provide "adequate
service." In filings with the five state utilities commissions, AT&T
accused US West of letting its core telecommunications network go downhill
in favor of investing in high-speed Internet services. These filings come
just weeks after U S West agreed to merge with AT&T long-distance rival
Qwest Communications International. AT&T and U S West are competing in
several markets to deliver broadband services to consumers -- AT&T through
its newly acquired cable-television lines and U S West through digital
subscriber line, or DSL, technology, which uses traditional copper wires. U
S West acknowledged continuing service challenges on Wednesday, but said
service continues to improve -- not worsen. AT&T is "clearly desperate to
divert attention from the growing firestorm that is building over AT&T's
refusal to open its closed cable monopoly," said Mark Roellig, a U S West
executive vice president.
[SOURCE: Wall Street Journal, B10, AUTHOR: Stephanie N. Mehta]
(http://interactive.wsj.com/articles/SB935021923209390708.htm)

ED TECH

WIRED ON CAMPUS E-LIFE
Issue: Ed Tech
Today's college student has one more thing to factor into their decision
about which school to attend: who is the most connected? Yahoo! now
publishes a list of the most connected schools. That's one of the reasons
Adam Grauer, a 21 year old communications major chose Case Western Reserve
University in Cleveland. The school was ranked number one on Yahoo!'s
Most-wired college list this year. College students use the Web for things
like furniture purchases, food, crib notes, research, books, software and
computer purchases. Myles Brand, president of Indiana University said, "In
the future, the leading universities will be those who are leaders in
information technology. The computer isn't just a study tool. It has become
totally integrated in the lives of our students."
[SOURCE: USA Today, 1B, AUTHOR: Bruce Horovitz]
(http://www.usatoday.com/hphoto.htm)

BROADCASTING

ECLECTIC LITTLE RADIO STATIONS DESERVE SPOTS ON THE AIRWAVES
Issue: Radio
Samantha Kors talks about the Federal Communications Commission's ban on
low-powered radio stations in communities that would like to offer local
programming. People in communities that would like to offer different
material over a low powered station cannot because the FCC is not taking up
the issues of the stations' rare interference with other stations and the
right of communities to free speech on the airwaves, according to Kors. She
stated, "In reality, the ban protects the politically powerful commercial
and public radio lobbies from competition from local stations. When the ban
was enacted, technological advances were making it increasingly cheaper to
run small stations. Numerous 'micro-radio' stations began to crop up in
defiance of the FCC ban. Because almost none of them interfered with other
signals, the FCC at first largely ignored them. Recently, however, the FCC
began to crack down on these broadcasters, shutting down their stations,
confiscating their equipment -- and stifling entrepreneurship and diversity
in the broadcasting industry. Eclectic, community-based radio stations are
being forced off the air in favor of more powerful and more homogeneous
stations. The low-power stations often give a voice to underrepresented
groups and, as a result, are beloved in their communities. Some stations
create jobs and wealth in struggling neighborhoods. Yet all of these
stations face significant penalties if discovered by the FCC." Kors sited
examples saying, "La Nueva Radio Musical is the only Spanish-language
station in the New Haven, Connecticut area broadcasting news, music,
religious services, community programming and commercials for Hispanic
businesses. More than 6,000 listeners, including the mayor and several
state legislators, signed a petition asking the FCC to allow it to continue
broadcasting, but the FCC said no. The station's cofounder, Hipolito
Cuevas, now is in court fighting an FCC lawsuit to take La Nueva Radio
Musical off the air."
[SOURCE: USA Today, 13A, AUTHOR: (Samantha Kors is a research associate at
the Institute for Justice which represents Roy Neset in the FCC case.)]
(http://www.usatoday.com)

MEDIA TALK: CHANNEL 2 SUED OVER AD CAMPAIGN
Issue: Journalism/Advertising
Chicago's CBS affiliate and one of the investigative reporters on the local
news team are being sued for defamation -- not for a story the station ran,
but for a promotional campaign. The central question appears to be: is
broadcasting the promotion news or is it done solely for the station's
commercial benefit. [Is there a difference in local TV news?] The original
story ran more than a year ago and the plaintiff did not sue at that time.
But the station started using clips of the story in January to tout the
effectiveness of its investigative reporting. After the plaintiff filed a
complaint, the promotions stopped, but earlier this month, the station began
running new promotions using story clips.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jim Kirk]
(http://chicagotribune.com/news/printedition/)

E-COMMERCE

IRELAND POSITIONING ITSELF TO BE AN E-COMMERCE HUB
Issue: E-Commerce
Ireland, the world's second largest software exporter, has hopes of
becoming an International e-commerce center as well. While the U.S.
currently controls almost 80% of the globe's e-commerce, the Irish
government is developing plans to lure some of that business across the
Atlantic. Strategies include liberalizing the country's telecommunications
market and laying high-speed cables. Prime Minister Bertie Ahern has
announced plans for an $80 million high-capacity connection to the republic
by mid-2000 and a 70 million punt domestic infrastructure plan. "We in
Ireland fully recognizes the critical importance of an e-commerce friendly
environment if we are to retain existing overseas investment," said Ahern.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/080087.htm)

FED APPROVES PLAN TO ALLOW BANKS TO E-MAIL CUSTOMERS' STATEMENTS
Issue: E-Commerce
The Federal Reserve Board voted 5-0 on a plan that could put an end to the
monthly statements that banks mail to customers in favor of an electronic
substitute. The Fed's plan will allow banks to send periodic
customer-account statements electronically and for other customer
information to be similarly delivered. The switch to electronic statements
would be voluntary for customers. The interim rule, which takes effect
later this summer, broadens the authority of banks to electronically
deliver routine periodic account statements. Previously, electronic
delivery had been limited to electronic-fund transfers. Other, less routine
transactions, such as account-opening notices and change-in-terms notices,
will be addressed by the Feds Wednesday. Under the proposal, banks could
deliver information by sending it to an e-mail address specified by the
customer or by making it available on the bank's Web site. Consumers signed
up for electronic delivery would be able to respond quickly. For example,
customers could give notice of an error in their account via e-mail,
instead of sending a paper notice.
[SOURCE: Wall Street Journal, A2, AUTHOR: Jonathan Nicholson]
(http://interactive.wsj.com/articles/SB935016675631263010.htm)

EMPOLYMENT

MCCAIN JOINS IN VISA `FRENZY'
Issue: Employment
Senator John McCain (R-AZ) has plans to introduce a bill to increase the
annual limit of high-tech visa to 175,000. Current law sets the limit at
115,000 H-1B visas for highly skilled foreign workers and will reduce the
number to 65,000 in 2002. McCain proposes that the U.S. secretary of labor
should be allowed to raise the cap if worker shortages still exist. "On an
annual basis you determine how many jobs you need so you're not caught
short like you are this year, or you don't realize the fears of labor and
others that you're now depriving American citizens of these jobs," he said
in an interview with the Mercury News. In a campaign tour in California,
McCain also called for a permanent ban on Internet taxation, citing a study
showing that sales taxes have increased during the first year of the
current three-year moratorium on Net taxes.
[SOURCE: San Jose Mercury News, AUTHOR: Mary Anne Ostrom]
(http://www.mercurycenter.com/svtech/news/indepth/docs/mccain081999.htm)

WIRELESS

TOO MANY PHONES, TOO LITTLE SERVICE
Issue: Wireless
As successful as wireless phone companies have been in attracting
subscribers, what are they doing to keep them happy? The Cellular
Telecommunications Industry Association estimates that there are 77 million
cell
phone users in the U.S. and more than 37,500 people sign up for wireless
service each day. In areas where cell phone use is highest -- New York, Los
Angeles, Seattle -- incomplete or disconnected calls often occur because
there are too many conversations on the limited amount of channels on a
carrier's network. The solution is to build more cell sites -- the antennas
and base station equipment that send and receive calls. CTIA estimates that
there were more than 65,000 cell sites in December 1998, a 28% increase over
the previous year. Tom Wheeler, president and chief executive of the
Cellular Telecommunications Industry Association says, "It took 75 years
before wire line phone service had the same kind of coverage that the
wireless carriers have achieved in a much shorter period. It's not where it
should be, but it's moving at lightning speed and improving every day."
[SOURCE: New York Times (D1), AUTHOR: Catherine Greenman]
(http://www.nytimes.com/library/tech/99/08/circuits/articles/19cell.html)

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Communications-related Headlines for 8/18/99

BROADBAND
AT&T's Planned Mediaone Deal Poses Test for U.S. Cable Policy (NYT)
Consumer Benefits from National Internet Policy of Unregulation (FCC)

MEDIA & SOCIETY
The Networks' Empty Promises (NYT)
Seeing Is Believing (ChiTrib)
TV Campaign Urges Parental Communication (WP)
Safe Surfing for Web-wary Parents (USA)

TELEVISION
Networks Invest in Personalized TV (SJM)
AOL, TiVo Join on Enhancing TV via Net (SJM)

INTERNET
Advertising: Net Advertising Potential Is Large (NYT)
Microsoft to Publish Specifications for Its Instant-Messaging
Service (WSJ)
Health Sites Are a Second Opinion, Not a Substitute for Doctor's
Care (WSJ)
Asia's Wireless Operators Await A Movement Beyond Just Voices (WSJ)

EDTECH
Online Classes Let Small Colleges Expand Offerings (CyberTimes)
Mentoring With A Twist (USA)

BROADBAND

AT&T'S PLANNED MEDIAONE DEAL POSES TEST FOR U.S. CABLE POLICY
Issue: Broadband/Internet/Cable
"Regulators should never accept a massive concentration in one market as a
condition for increasing local competition in another," Mark Cooper,
director of research at the Consumer Federation of America, said. "This
merger breaks all the rules." The Federal Communications Commission and the
U.S. Department of Justice will review AT&T's bid to purchase Mediaone for
$58 million. AT&T executives say the acquisition is needed to establish a
cable network so vast and powerful that it will provide high-speed Internet
service, cable television and telephone service that can compete with the
regional Bell companies. "This merger will result in inflated cable and
broadband Internet service prices for consumers and thwart the development
of vibrant competition in these markets," wrote three groups -- Consumers
Union, the Consumer Federation of America and the Media Access Project -- in
a letter to the Justice Department on Tuesday. AT&T's response: By growing
so quickly, the company will benefit many millions of telephone customers
nationwide by using the newly acquired cable lines to break into local
telephone markets that have been dominated by a handful of Bell companies
fiercely resistant to competition. "AT&T's proposed acquisition is a blatant
blatant violation of our nation's antitrust laws and our nation's
competition laws,' said Gene Kimmelman, co-director of the Washington office
of Consumers Union.
[SOURCE: New York Times (C1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/yr/mo/day/news/financial/att-mediaone.html)
See Also:
COALITION OPPOSES AT&T DEAL
[SOURCE: Washington Post (E03), AUTHOR: Shu Shin Luh]
(http://www.washingtonpost.com/wp-srv/business/feed/a12343-1999aug18.htm)
CONSUMER GROUPS URGE AGENCIES TO BLOCK AT&T-MEDIAONE DEAL
[SOURCE: Wall Street Journal, AUTHOR: Mark Wingfield]
(http://interactive.wsj.com/articles/SB934910363292111901.htm)

CONSUMER BENEFITS FROM NATIONAL INTERNET POLICY OF UNREGULATION
Issue: Broadband/Internet/Cable
From News Release: In a case involving the authority of local governments to
regulate Internet access over cable lines, the Federal Communications
Commission today told a federal appeals court that consumers have benefited
from the FCC's 30-year policy of Internet "unregulation" and that its policy
has successfully spurred deployment of new services. The brief asks the
Court to "resolve the dispute presented in a narrow fashion."
FCC Chairman William E. Kennard said, "Internet users want and
expect choice, and as the drivers of the market, they will not be satisfied
unless they get it. Openness and competition will bring it to them. While we
continue to monitor closely this market's dynamics, I believe it is far too
early for any government regulator to move in."
In an amicus brief filed with the United States Court of Appeals for
the Ninth Circuit in the AT&T v. City of Portland case, the Commission said
that it is "the agency charged with implementing federal communications
policy" and that it is "the only agency with jurisdiction over all the
current providers of broadband technology." The brief noted that
inconsistent regulation of different providers of broadband technology
"could undermine the development of intermodal competition" between cable
operators, wireline telephone companies, providers of wireless
telecommunications services and satellite communications firms.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9060.html)

MEDIA & SOCIETY

THE NETWORKS' EMPTY PROMISES
Issue: Media & Society
[Op-ed] It's deja vu all over again, writes Alexander. The same questions
raised by the NAACP about the amount of minorities on television were raised
in January of 1968 and March of 1969 when he chaired the Equal Employment
Opportunity Commission. We're working with outside production firms to
minority talent on screen, ABC promised. We're trying to honesty reflect
contemporary society, said NBC. Alexander ends, "The networks have hired
more minority executives, but not nearly enough. They still act as if they
are accountable only to some misplaced view of what their financial experts
say will attract advertising dollars. Unfortunately, there is little reason
to believe they will fulfill their promises now any more than they did three
decades ago. I would like to be hopeful, but history teaches us that
skepticism rather than optimism is the order of the day."
[SOURCE: New York Times (A25), AUTHOR: Clifford L. Alexander served as
chairman of the Equal Employment Opportunity Commission from 1967 to 1969.]
(http://www.nytimes.com/yr/mo/day/oped/18alex.html)

SEEING IS BELIEVING
Issue: Media & Society
[Op-ed] Murphy's reaction to a New York Times article on the gap between
African-American students' and White students' test scores. Murphy suggests
that standardized, written test do not accurately score people's
intelligence. Murphy also suggests that television and the movies teach kids
that African Americans are inadequate and inferior. He concludes,
"African-American kids should be able to watch television (and movies) and
see the type of black people who exist all over this country: honest,
God-fearing people. Folks who make sacrifices, raise families and grapple
with personal and moral issues. But in trying to raise their children, they
are constantly fighting an uphill battle against images that unconsciously
send the message to their kids that they aren't equal to other children."
[SOURCE: Chicago Tribune (Sec1, p.21), AUTHOR: Patrick Murphy, Cook County
(IL) Public Guardian]
(http://chicagotribune.com/news/commentary/printedition/article/0,2669,SAV-9
908180195,FF.html)

TV CAMPAIGN URGES PARENTAL COMMUNICATION
Issue: Advertising/Media &Society
Tonight, TVs around the nation will be carrying messages telling parents to
talk to their children about violence. More than twenty major networks will
air public service announcements in which President Clinton urges viewers,
"Please, talk with your kids." The Ad Council calls the ad campaign - which
will reach millions of viewers tonight alone - an "unprecedented" effort.
The 30-second announcements feature several children talking about
potentially violent incidents at school and urges viewers to call a
toll-free number to receive further information on the issue.
[SOURCE: Washington Post (A4), AUTHOR: Charles Babington]
(http://www.washingtonpost.com/wp-srv/national/daily/aug99/clintons18.htm)

SAFE SURFING FOR WEB-WARY PARENTS
Issue: Internet Content/Media & Society
This article covers different sites for parents to visit such as this.com
and FamilyClick.com to get help supervising their childrens' Web activity.
Various packages are examined to see what materials are blocked and which
packages work best. Organizations are realizing that the Supreme Court will
never allow any legislation that bans pornography so they are coming up with
new ideas for filtering sites for parents.
[SOURCE: USA Today, 1D, AUTHOR: Stephanie Armour]
(http://www.usatoday.com)

TELEVISION

NETWORKS INVEST IN PERSONALIZED TV
Issue: Television
Several television and cable networks are investing in a company that makes
digital video recorders that are expected to one day replace VCR's. Time
Warner, Walt Disney, Showtime, the Tribune Co. and Liberty Media Group,
among others are expected to announce today that they are investing $57
million in Replay Networks, a leading maker of personal video recorders
(PVRs). Essentially, PVRs are set-top boxes that can find and
record many hours of shows that fit an individual viewer's tastes. They also
allow instant replays of live television. One major selling point that
customers won't be hearing much about is a quick-skip feature that allows
viewers to bypass commercials in seconds. With new investment from major
networks, the company may be forced to re-consider the quick-skip feature
altogether, "It's not our goal to destroy an advertising-based business
model," said Replay Networks spokesman Jim Plant "We know there will be
people who want to skip commercials. The goal for us is to find other ways
for companies to deliver their messages."
[SOURCE: San Jose Mercury News, AUTHOR: Michael Warren (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/764597l.htm)

AOL, TIVO JOIN ON ENHANCING TV VIA NET
Issue: Internet/Television
America Online has just announced plans to develop a set-top box that
brings the Internet to TV and helps viewers find and record programs. AOL
is teaming up with TiVo, which makes video recorders that automatically
locate and record shows that match users' tastes. The least expensive TiVo
recorder currently sells for $499 plus a $9.95 monthly service fee. The two
companies will not say how much their combined product will cost. AOL has
plans to offer a variety of set-top boxes that use Internet technology to
enhance TV viewing, including the AOL-TiVo box and one that uses DirecTV
satellite TV service.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/tivo081899.htm)

INTERNET

ADVERTISING: NET ADVERTISING POTENTIAL IS LARGE
Issue: Advertising/Internet
Advertising on the Internet is still seen as long on potential and short on
success stories. But Jupiter Communications an Internet research firm,
projects $11.5 billion in spending for online advertising in 2003, compared
with $2.1 billion in 1998. Within four years, Jupiter predicts, advertising
on the Internet will outrank cable television and magazines and will be
vying for #3 with radio behind broadcast television and newspapers.
Advertisers are recognizing the Internet's potential for branding as opposed
to direct sales. Patrick Keane, an analyst with Jupiter, said, "Advertisers
are going to realize that they have to integrate their campaigns across all
media," instead of merely adding a Web site address to "a TV ad or whatever
else they're doing." Keane explains, "the fragmented nature of media
consumption means marketers will need to hit consumers at multiple media
points." "People have been a little myopic about online advertising, just
looking at the fact that the dollars are smaller," he added. "It's not about
the numbers. It's about how the Internet is reinventing advertising."
[SOURCE: New York Times (C6), AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/18adco.html)

MICROSOFT TO PUBLISH SPECIFICATIONS FOR ITS INSTANT-MESSAGING SERVICE
Issue: Competition
Microsoft plans to publish the technical specifications for its MSN
Messenger software by the end of this month and is encouraging other
providers of instant-messaging services to adopt its approach in order to
let their users exchange messages with Microsoft's customers. The move is
intended to increase pressure on AOL to allow interconnections between its
service and other systems. The instant messaging technology is expected to
serve as the foundation for a host of more-advanced Internet services,
including audio and video conferencing. AOL has rejected suggestions it make
its technical specifications freely available until an industry-standards
body, the Internet Engineering Task Force, settles on a common approach --
but Rob Bennett, a Microsoft marketing director, said, Prodigy
Communications, Tribal Voice, and PeopleLink have agreed to support
Microsoft's protocols. Microsoft says they are hoping to open up instant
messaging to other competitors and that these standards create
interoperability between the technologies.
[SOURCE: Wall Street Journal, AUTHOR: David Bank]
(http://interactive.wsj.com/articles/SB934939138869281427.htm)

HEALTH SITES ARE A SECOND OPINION, NOT A SUBSTITUTE FOR DOCTOR'S CARE
Issue: Health Online
Don't rely any less on your doctor's advice -- some of the material on the
Internet for health information is out of date and rife with multiple
agendas that put product sales before an individual's health interests.
Most general health sites carry medical information, wellness advice or a
mix of both. But MedicaLogic CEO Dr. Mark Leavitt said misdiagnosing an
illness isn't the only concern raised by these sites. "You could miss
something or worry unnecessarily about something you don't have." Theories
about the sudden popularity of health sites are that the Internet has made
it easy to disseminate information that has long been in demand and that
some people question the purity of doctors' motives today. People blame
financial pressure from insurers and health-maintenance organizations on
doctors. Online health sites offer an easily accessed, inexpensive and
understandable second opinion. What surprises physicians is that, so far,
there hasn't been a highly publicized case in which someone has substituted
Web information for a doctor's care, resulting in a misdiagnosis.
[SOURCE: Wall Street Journal, AUTHOR: John Dodge]
(http://interactive.wsj.com/articles/SB934829011827605227.htm)

ASIA'S WIRELESS OPERATORS AWAIT A MOVEMENT BEYOND JUST VOICES
Issue: International/Wireless/Internet
Asia has some of the world's highest mobile phone penetration rates, yet
some of the lowest Internet penetration rates. The low penetration numbers
for the Internet could change very rapidly in the coming months as several
telecommunications companies are introducing the Internet via cellular
phones. Hong Kong's Cable & Wireless HKT, SmarTone, KG Telecom in Taiwan
and Singapore Telecommunications are introducing wireless phones capable of
browsing the Web that will hit the market in the next few months. While
Asians have been slow to embrace the Internet when compared with Americans
and Europeans, they are gadget lovers and often jump on new technologies.
What's more, mobile phones are often seen as status symbols. In addition,
the high cellular-phone penetration in several of Asia's countries also
makes the medium a much quicker way to wire up the large numbers of people
that still aren't online. In the past six months, more than a million
Internet-capable mobile phones have been sold by Japan's NTT Mobile
Communications. "Without a doubt, mobile-phone companies will have to
provide this type of access if they want to retain a competitive edge,"
says Pete Hitchen, an analyst with market-research firm International Data
Corp. Mr. Chau, director of engineering at Smartone Telecommunications, one
of the largest cellular-phone companies in Hong Kong, predicts,
"Eventually, more people [in Asia] will access the Internet with their
mobile phones than with fixed lines and personal computers."
[SOURCE: Wall Street Journal, AUTHOR: Connie Ling]
(http://interactive.wsj.com/articles/SB934907448997008456.htm)

EDTECH

ONLINE CLASSES LET SMALL COLLEGES EXPAND OFFERINGS
Issue: EdTech
The Internet has enabled some smaller colleges to provide their students
with resources and classes previously exclusive to larger schools and
universities. A group of students from small liberal arts colleges in the
South recently took advantage of an online archaeology course that prepared
them for a real archaeological dig in Turkey. None of the schools offered
archaeology classes themselves, but were able to use the Internet to help
meet students' needs. "Technology could really provide them with the
advantages of being able to maintain the virtues of smallness, and get over
some of the defects," said Mary P. McPherson, a vice president of the
Andrew W. Mellon Foundation, which provides grants to projects exploring
the educational uses of technology. There is little data on either how many
colleges are engaging in such uses of technology, or how effective these
projects are at enhancing learning. "Is technology making education broader,
cheaper and more
effective?" asks Gregory C. Farrington, president of Lehigh University in
Bethlehem, Pa. "Or is it merely glitzy and glittery?"
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/08/cyber/education/18education.html)

MENTORING WITH A TWIST
Issue: EdTech
Employees are now using the Web for e-mentoring. This is where experienced
professions meet via the Web, forming short-term or long-lasting e-mail
connections for career and professional mentoring. Women in Technology
International (WITI) has women in the technology field mentoring others,
answering questions like, "How do I find venture capital." Mighty Mentors is
a e-mentoring service for teachers, where they can find a mentor based on
grade, location and subject taught. E-mentoring is expected to grow into
other industries as more workers look for mentors they can
tap for career advice.
[SOURCE: USA Today, 1B, AUTHOR: Stephanie Armour]
(http://www.usatoday.com)

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