October 1999

Communications-related Headlines for 10/15/99

ANTITRUST
Microsoft Targets Funding for Antitrust Office (WP)

INTERNET
Strong Factions Begin to Form in Fight On Applying Taxes to
Internet Sales
(WSJ)
Rounding Up the Century's Greatest Trials Online (CyberTimes)

WIRELESS
Intel Agrees to Purchase DSP For $1.6 Billion in Cash Deal (WSJ)
BT and Microsoft to Develop Mobile Internet Services for Consumers
(NYT)

ANTITRUST

MICROSOFT TARGETS FUNDING FOR ANTITRUST OFFICE
Issue: Antitrust
The Microsoft Corporation has decided to go after the source of much of its
recent legal problem--the Justice Department's antitrust division. The
software giant and its allies are lobbying Congress to reduce next year's
proposed funding for the division by about $9 million. The Clinton
administration is seeking $114.3 million to cover the salaries of 360
attorneys now in the antitrust division and to fund the hiring of about 18
more legal staff members. That would be an increase of about 16 percent
over the previous budget. While Senate appropriators have proposed a budget
of $112.3 million, the House figure is only $105.2 million. Nonprofit
organizations that receive financial support from the company have also
urged key congressional appropriators to limit spending for the division.
The nonprofit groups addressed Congress via a letter last month after an
all-expenses-paid trip to Microsoft headquarters in Redmond, Wash., where
they were entertained and briefed on issues facing the company. Company
officials said they want to send a strong message to the antitrust
division. "It's no secret we really have some serious concerns about some
of the Department of Justice's conduct during the course of this
litigation," said Jack Krumholtz, director of federal government affairs
for Microsoft.
[SOURCE: Washington Post (A1), AUTHOR: Dan Morgan and Juliet Eilperin]
(http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm)

INTERNET

STRONG FACTIONS BEGIN TO FORM IN FIGHT ON APPLYING TAXES TO INTERNET SALES
Issue: E-Commerce
The 19-member Commission on Electronic Commerce was formed last fall when
Congress passed a three-year ban on new Internet sales taxes, and that
Commission needs a super-majority of 13 votes to pass its conclusions. The
commission has seven members from the high-tech industry, nine from states
and municipalities and three from the Clinton administration. Of the 19
members, seven members support modest reductions in existing taxes on
interstate purchases. Six members favor applying the existing sales taxes
and possibly creating new taxes. The commission's six other representatives,
including AT&T's Chairman C. Michael Armstrong, haven't indicated where they
stand. A compromise could be in the works. Under discussion is a plan that
would force states and municipalities to simplify their tax rules and to
promise not to apply new taxes to Internet sales and access charges. In
exchange, states would receive expanded authority to collect existing sales
taxes from out-of-state vendors who sell goods on the Internet. "That's the
trade that state and local officials have been shopping around," said Dean
Andal, whose board oversees California's sales-tax system. "The problem is
there's no [public] support for taxing sales on the Internet." The things
that all of the members agree on are opposition to placing tariffs on
foreign Internet sales and abolishing the century-old 3% tax on
telecommunications service enacted to finance the Spanish-American War. The
advisory group has until April 2000 to submit a conclusion on Internet
taxation.
[SOURCE: Wall Street Journal, AUTHOR: John Simons]
(http://interactive.wsj.com/articles/SB939951696169682417.htm)

ROUNDING UP THE CENTURY'S GREATEST TRIALS ONLINE
Issue: Internet
Legal historian Douglas O. Linder, a professor at the University of
Missouri-Kansas City Law School, has created a Web site that tells the
stories of 12 famous trials. "Famous Trials in American History," uses a
mix of transcripts, maps, pictures, audio clips, primary documents and
essays to tell the stories of trials including the Scopes trial (1929),
Leopold and Loeb trial (1924), and the Chicago Seven trial (1969-1970).
Although there are a few other sites on the Web that offer primary
documents from particular trials for scholars, Linder's is the only one
geared to a popular audience, said Bernard J. Hibbitts, a law professor at
the University of Pittsburgh and creator of a legal resource site, Jurist.
"In the long run, the Web will increasingly draw attention to aspects of
the legal experience that we have become deaf to," Hibbitts said. "We don't
think about how these old cases sounded, what they looked like, what made
them memorable to people at the time. According to him, Linder's site
represents the Internet "at its best."
SOURCE: CyberTimes, AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/library/tech/99/10/cyber/cyberlaw/15law.html)

WIRELESS

INTEL AGREES TO PURCHASE DSP FOR $1.6 BILLION IN CASH DEAL
Issue: Merger/Wireless
Intel is purchasing chipmaker DSP Communications for $1.6 billion as it
seeks to promote the marriage of cell phones and the Internet. Intel has
been expanding into the market for chips used in communications products as
its main microprocessor business has been hit by falling computer prices.
Intel said it would pay $36 a share for DSP's shares. DSP, which has its
headquarters in Cupertino, California and most of its engineers in Tel Aviv,
makes chips and software used in several varieties of digital cellular
phones, especially the types used in Korea, Japan and the U.S. The company
has 300 employees and profited over $29 million in 1998. With the addition
of the DSP technology, Intel has a bigger arsenal of tools as a supplier to
the cell-phone market. "Intel is buying good technology and a position in
voice communications," said Jonathan Joseph, an analyst at Salomon Smith
Barney. "But wireless data still isn't a mainstream technology because of
the cost and problems with speed and quality."
[SOURCE: Wall Street Journal, AUTHOR: Dean Takahashi]
(http://interactive.wsj.com/articles/SB939903740181455605.htm)

BT AND MICROSOFT TO DEVELOP MOBILE INTERNET SERVICES FOR CONSUMERS
Issue: Wireless
Yesterday, British Telecommunications and Microsoft announced plans to
jointly develop technologies to enable people to use handheld wireless
devices for sending e-mail and browsing the Internet. The alliance will
focus on developing mobile Internet products using Microsoft's CE
operating system. British Telecom's partnership with Microsoft provides it
with the Internet technology to become a full-service provider of data and
video services, a key part of its $10 billion planned alliance with AT&T.
Microsoft hope that this deal will help in heading off to competition from
Symbian, a rival wireless consortium formed by Motorola, Nokia and Ericsson.
[SOURCE: New York Times (Online), AUTHOR: Associated Press]
(http://www.nytimes.com/library/tech/99/10/biztech/articles/15microsoft-wire

less.html)

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

Communications-related Headlines for 10/14/99

BROADBAND
FCC Recommends 'Hands-Off Approach' To Regulators of
Broadband Industry (WSJ)
Start-Up Extends the Reach of DSL for Phone Companies (WSJ)

ECOMMERCE
For Ancient Indian Nations, Virtual Trade Routes (NYT)
In Wired World, Much Is Free at Click of a Mouse (NYT)

MERGERS
EU Clears Cross-border Telecom Merger In Ruling Designed To Set
A Precedent (WSJ)

WIRELESS
Palm Computing and Wireless Makers Form Partnership (NYT)

BROADBAND

FCC RECOMMENDS 'HANDS-OFF APPROACH' TO REGULATORS OF BROADBAND INDUSTRY
Issue: Broadband
Yesterday, the Federal Communications Commission recommended that regulators
should continue their "hands-off" approach to high-speed Internet access.
Broadband "is in its infancy, and regulatory restraint continues to be
warranted at this time," said an FCC report. Broadband is considered key
for e-commerce, video and other uses of the Internet that require high speed
and high capacity. Only about 3% of the nation's residences now have access
to broadband, the report found. The report also concluded that
Internet-service providers (ISPs) using conventional phone lines wouldn't be
shut out of the market for several years. The report found that the
emergence of cable modems has sparked deployment of competing technologies
by telephone companies and that more competition may emerge in the future
from satellite and wireless providers. The FCC did say, however, that if
market forces fail and cable becomes the dominant means of high-speed
Internet access, regulation might be necessary. The FCC report also sought
to discourage local governments from passing their own broadband access
rules, concluding that nationwide broadband deployment depends on a national
policy. Chairman William Kennard said the report was intended "to put in one
place everything you need to know about this debate today. This is our
effort at assisting other policy makers to get them up to speed." In an
letter to Chairman Kennard, consumer groups complained the report's guidance
to local governments is incompatible with the FCC's position on broadband
and that the process of soliciting comments for the report was a closed one
involving "invitation only" meetings with staff. The National Cable
Television Association (NCTA) said the report "confirms that competition
among telephone, cable, satellite and wireless broadband providers is
speeding broadband deployment and that government regulation would only slow
the delivery of high-speed Internet service to consumers."
[SOURCE: Wall Street Journal, AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB939865653701868781.htm)

START-UP EXTENDS THE REACH OF DSL FOR PHONE COMPANIES
Issue: Broadband
With digital subscriber line (DSL) technology, high-speed Internet access
over ordinary phone lines is dependent on the distance the customer
lives from a phone company's central-office switch. Currently, such
connections fizzle out between 12,000 and 16,000 feet -- but a Silicon
Valley start-up has a solution to that distance problem. Today, Integrated
Telecom Express (ITEX) will unveil a chip that extends the range that the
high-speed Internet connection can travel from the central-office switch to
3.8 miles, or 20,000 feet. At 12,000 feet, phone companies can sell DSL to
only about half of the residents served by a central-office switch but with
20,000 feet, that number gets closer to 75%, says Will Strauss, an analyst
at Forward Concepts. That boost is important, because DSL is lagging behind
the deployment of less costly cable-TV modems, which provide similar
high-speed Internet access and got going about a year earlier than DSL. The
chip also drastically lowers the price of the DSL modems that use the chip,
from about $150 to less than $100. ITEX says the chips work regardless of
the kind of DSL equipment in the central-office switch. ITEX has been able
to attract $26 million in funding from investors including computer giant
Intel and United Microelectronics in Taiwan.
[SOURCE: Wall Street Journal, (B8), AUTHOR: Dean Takahashi]
(http://interactive.wsj.com/articles/SB939851710592487946.htm)

E-COMMERCE

FOR ANCIENT INDIAN NATIONS, VIRTUAL TRADE ROUTES
Issue: E-Commerce
Members of the six-nation Iroquois Confederacy once traveled half a
continent on foot to trade with other Indian nations. Now, nation-to-nation
trade routes are often virtual rather than physical. Tribes are
increasingly taking advantage of the Internet to conduct business with
other tribes. Keller George, president of United South and Eastern
Tribes (USET), estimates that 60 to 70 percent of the organization's
member tribes are online. "We're just trying to get back to the basics of
how the Indian people a long time ago did nation-to-nation trade, by
finding out what products they had to offer," George said. "Then it was
done on a more personal basis, but today I think we can do it with
technology." USET has recently launched the Nation to Nation Trade Forum
(bbs.oneida-nation.net), a place for the organization's 23 member tribes to
discuss trade online.
[SOURCE: New York Times (E6), AUTHOR: Jonathan Lesser]
(http://www.nytimes.com/library/tech/99/10/circuits/articles/14trad.html)

IN WIRED WORLD, MUCH IS FREE AT CLICK OF A MOUSE
Issue: E-Commerce
These days it seems as if there are few things that aren't offered for free
online. From downloadable software programs and music hit singles, to even
long distance calls - - there are increasing numbers of free products for
wired consumers. "We are shifting from a retail economy to what I call an
attention economy," Kraus said. "You are willing to give away services or
even pay people to use services, if you can get a lot of people listening
to your message." Some question whether there is enough money in
advertising to justify the free model of many start-ups. "There is an
unwarranted frenzy around the free model on the Internet," said James
Breyer of Accel Partners, who argues that most such companies "are pursuing
suicidal strategies."
[SOURCE: New York Times (A1), AUTHOR: Saul Hansell]
(http://www.nytimes.com/library/tech/99/10/biztech/articles/14free.html)

MERGERS

EU CLEARS CROSS-BORDER TELECOM MERGER IN RULING DESIGNED TO SET A PRECEDENT
Issue: Merger
The European Commission approved the first ever cross-border
telecommunications merger within the European Union while simultaneously
signaling that future deals won't come as cheap as the first. The
commission's approval is contingent upon Sweden's Telia AB and Norway's
Telenor ASA selling all of their overlapping assets, including mobile-phone
operations, cable-television distribution and other telecommunications
services. Additionally, both companies must open their local telephone
networks to greater competition. The two companies will provide competitors
access to their local networks and eliminate overlap in the Irish
mobile-phone market, where the merged entities would have controlled both
of only two operators presently there. European Competition Commissioner
Mario Monti said he had wanted the Telia-Telenor tie-up to set a precedent
for mergers between incumbent telecommunications operators, by requiring
divestitures that would make it easier for competitors to enter dominant
players' markets. Initially, the Swedish government will own 60% of the
merged group, while the Norwegian government will hold 40%. The intention
is to reduce these stakes to 33% each in a partial privatization no later
than May next year. The merger is expected to close Monday with the
companies joining operations on Nov. 1.
[SOURCE: Wall Street Journal (A23), AUTHOR: Brandon Mitchener]
(http://interactive.wsj.com/articles/SB939849371856034721.htm)

WIRELESS

PALM COMPUTING AND WIRELESS MAKERS FORM PARTNERSHIP
Issue: Wireless/ Internet
Palm Computing, the maker of hand-held computing devises, has announced
formation of an alliance with wireless phone makers Nokia, Motorola,
Ericsson, Psion and Matsushita to create a de facto standard for wireless
Internet access. The move is seen a serious threat to the Microsoft's
Windows CE operating system for hand-held devices, which has struggled to
compete against Palm Computing's Palm operating system in the United States
and Psion's Epoc operating system in Europe. The world's largest
manufacturer of wireless phones, Nokia, said it would introduce the first
model combining the Palm and Symbian operating systems in the United States
in 2001.
[SOURCE: New York Times (C6), AUTHOR: Andrew Ross Sorkin]
(http://www.nytimes.com/library/tech/99/10/biztech/articles/14palm.html)

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

Communications-related Headlines for 10/13/99

MEDIA & SOCIETY
Politicians Speak Out but Are Wary of Restricting Film Violence
(NYT)

MERGER
Wake-Up Call for Bill Kennard (WSJ)
Chris-Craft Holds Talks On Partial or Total Sale (WSJ)

EDUCATION & TECHNOLOGY
Kentucky Reaches For High School Students With Internet
Courses (CyberTimes)
Online Presentations Boom as Colleges Compete for the Brightest
Students (NYT)

INTELLECTUAL PROPERTY
High Court Sets Stage for Patent Trial Pitting AT&T Against
Teleglobe Unit (WSJ)

MEDIA & SOCIETY

POLITICIANS SPEAK OUT BUT ARE WARY OF RESTRICTING FILM VIOLENCE
Issue: Media & Society
Many politicians have spoken out against the amount of violent images in
film and other media believing to some degree that media violence
contributes to violence in society. But for all their talk, it is a safe
bet that no law will be passed or regulatory action taken that puts
meaningful restraints on movies, television or other forms of
entertainment. Gallup polls last spring found that 81 percent of American
adults say they believe that violent entertainment is a cause of increased
violence in society and that 73 percent say the government should restrict
the access of minors to such material. But even though politicians follow
such polls as closely as they do campaign contributions -- and, yes, the
entertainment industry is a big dollar contributor to parties and
candidates -- there is little the Federal government can do. "If I could
wave a magic wand and stop violence in the media, I would wave it," said
Senator Charles Schumer (D-NY). "But it is impossible without the heavy
hand of government starting to censor, and when the government starts
censoring or giving a seal of approval, it has the potential to do more bad
than good."
[SOURCE: New York Times (B1), AUTHOR: David Rosenbaum]
(http://www.nytimes.com/yr/mo/day/news/arts/movie-violence.html)

MERGERS

WAKE-UP CALL FOR BILL KENNARD
Issue: Mergers/Competition
According to Holman Jenkins, the Congress failed when it insisted on
preserving the destination between local and long distance in the
Telecommunications Act on 1996. Holding the Bells back from entering the
long distance market has not saved consumers money - it has cost them. Mr.
Jenkins explains that 93 cents out of every dollar paid for long distance
goes to selling the service, while only 7 cents goes to pay for the
switching and carrying of an actual call. Because they already have a
billing relationship with customers, local carriers would be able to offer
consumers more for that 93 cents spent on long distance. When SBC is
allowed to offer long distance, it will be able to do so with little
additional cost in overhead and billing. And because SBC needs competition,
BellSouth would have been a better partner for Sprint than MCI. "in a sane
world," says Jenkins, "Sprint would have jumped at BellSouth's offer last
week, and regulators would have supported it."
[SOURCE: Wall Street Journal, (A31) AUTHOR: Holman W. Jenkins, Jr.]
(http://interactive.wsj.com/articles/SB939764743140180077.htm)

CHRIS-CRAFT HOLDS TALKS ON PARTIAL OR TOTAL SALE
Issue: Mergers
The Federal Communications Commission's relaxation of broadcast ownership
rules has raised the potential value of Chris-Craft Industries' 10
stations, and the company is exploring a sale of all or part of the
stations. These stations concern companies that include CBS, News Corp. and
the Tribune Co. The value of a deal could be as much as $3.5 billion and
CBS is thought to be the leading candidate. CBS recently agreed to be
acquired by Viacom, which is a partner with Chris-Craft in the UPN Network.
Viacom's partnership with Chris-Craft in the UPN network has presented a
problem, since federal rules prevent one company from owning two networks.
As a result Viacom may have to unload its interest in the UPN network to
combine with CBS, and Chris-Craft would have to go along with any deal
involving UPN if Viacom chooses to sell. Buying Chris-Craft outright would
allow Viacom-CBS to more easily dispose of the network. Despite CBS's
front-runner status, talks with News Corp. have also become active in the
past two weeks and Tribune is seen as a longer-shot candidate -- but that
would raise questions about the status of UPN, because Tribune has a
minority stake in the rival WB network. Most of the up-for-grab stations
are in important markets such as New York, Los Angeles and San Francisco.
All entities declined to comment.
[SOURCE: Wall Street Journal, AUTHOR: Martin Peers and John Lippman]
(http://interactive.wsj.com/articles/SB939770072857182581.htm)

EDUCATION & TECHNOLOGY

KENTUCKY REACHES FOR HIGH SCHOOL STUDENTS WITH INTERNET COURSES
Issue: Ed-Tech
Kentucky Virtual High School is open for business--and students. Beginning
in January, students in Kentucky will be able to log on to a new Web site
and take 15 courses offered entirely online. The goal is to give students
at public high schools in Kentucky the option to enroll in a variety of
online courses offered free through the state's Department of Education.
The Virtual High School, financed partially by a federal grant and operated
by the nonprofit Concord Consortium in Concord, Mass., offers primarily
elective courses, like advanced placement statistics and aviation history.
The effort is aimed in large part at students in small, rural school
districts that suffer from a shortage of teachers qualified to teach
upper-level math, science and foreign language courses. There is some
concern about the growth of online virtual high school courses, however.
Mark A. Shoup, a former teacher and spokesman for the Indiana State
Teachers Association, said one concern is whether schools might be tempted
to do away with classroom instruction for subjects with small enrollments
if online alternatives are available. Another is whether online instruction
is as effective as a traditional class. Designers of the Kentucky program,
which has received the support of that state's teacher's union, say that
enough virtual conversation has been built into the courses through e-mail
and online discussions.
[SOURCE: Cybertimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/10/cyber/education/13education.html)

ONLINE PRESENTATIONS BOOM AS COLLEGES COMPETE FOR THE BRIGHTEST STUDENTS
Issue: InfoTech
Universities around the country are using the Internet to offer prospective
students virtual tours of their campuses. Strategically placed cameras
around campus may offer live shots picturesque quadrangles. "What we're
trying to do is continue a student's interest in the institution with the
ultimate goal of getting them to visit," said Brian Davis, the associate
director of undergraduate admissions at the University of California at Los
Angeles.
[SOURCE: New York Times (A23), AUTHOR: Nick Golden]
(http://www.nytimes.com/library/national/101399web-tours-edu.html)

INTELLECTUAL PROPERTY

HIGH COURT SETS STAGE FOR PATENT TRIAL PITTING AT&T AGAINST TELEGLOBE UNIT
Issue: Intellectual Property
Yesterday, the Supreme Court justices declined to block a November trial
between AT&T and Teleglobe Inc.'s Excel Communications unit, which sets the
stage for a possible ruling that could further define the area
of high-technology patents. The companies are fighting over a patent for a
technology that helps long-distance telephone companies bill customers who
participate in special calling plans. The issue is whether AT&T's
computerized billing process, which relies on a mathematical algorithm, can
qualify for patent protection. The case arose in 1996, when AT&T filed a
patent-infringement suit against Excel in a federal court in Delaware.
Excel, in turn, asked the court to declare AT&T's patent invalid and
dismiss the case. An algorithm alone is unpatentable ruled a federal judge,
siding with Excel. Upon appeal, a three-judge Federal Circuit panel ruled
otherwise and sent the case back to a lower court for trial. The panel said
AT&T's billing process used a mathematical formula to "produce a useful,
concrete, tangible result" that seemed to fall within the scope of federal
patent protection. Excel then said the appellate court ruling marked a
dramatic change in patent law, and that Congress, not the courts, should
set patent policy. This is an important issue as the number of patents for
so-called "business processes" has surged in recent months. Last January
the Supreme Court left intact a ruling from the U.S. Court of Appeals for
the Federal Circuit, that said patents could be granted for data-processing
and other business systems that use computers and software.
[SOURCE: Wall Street Journal, AUTHOR: Scott Ritter, Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB939741129608133988.htm

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

Communications-related Headlines for 10/12/99

INTERNET
Information Superhighway Is Just Outside Highway (NYT)
Intel Seeks To Protect E-Medicine (USA)
E-Commerce TV Opens In Britain (SJM)
From Two Small Nodes, a Mighty Web Has Grown (NYT)

TELEPHONY
In Brazil, MCI's Planned Purchase of Sprint Truly
Is a Big Deal (NYT)
AT&T, British Telcom To Expand Orchestra For
Their 'Concert' (WSJ)
Global Crossing Will Purchase Racal Telecom for
$1.01 Billion (WSJ)
Competitive Ring to this Plan (ChiTrib)
Federal-State Joint Conference On Advanced
Telecommunications Services (FCC)

CABLE
FCC Revises Cable Horizontal Ownership and Attribution Rules (FCC)

INTERNET

INFORMATION SUPERHIGHWAY IS JUST OUTSIDE HIGHWAY
Issue: IT & the Economy
A special report called Washington.com. Traditional thought of as a swampy
den of political intrigue, now Washington, DC and the surrounding areas are
home to more entrepreneurs than Federal workers. Internet, computer
services, telecommunications, aerospace and biotechnology companies employ
more than 470,000 people, easily outnumbering the roughly 350,000 people
employed by the Federal Government. "This area is exploding; we have some of
the best talent in the industry right here," said Lou Scanlon, chief
executive of UUCom Inc., one of the small Internet engineering companies in
suburban Virginia that, like hundreds of others, has experienced growth in
revenue of several hundred percent a year for the last few years. Annual
studies by Washington Technology magazine show that the area's 50 fastest
growing high-tech companies, most of them quite small, earned $55 million in
1993 and $1.32 billion last year, a 24-fold increase.
[SOURCE: New York Times (A1), AUTHOR: Joel Brinkley]
(http://www.nytimes.com/library/tech/99/10/biztech/articles/12boom.html)

INTEL SEEKS TO PROTECT E-MEDICINE
Issue: Online Health
Intel will offer a new service to allow doctors and patients to be paired
up and conduct sensitive business on the Internet, such as sharing results
of medical tests. The service, which will be available in 2000 and use
private codes given to doctors, patients and other health care providers,
has a significantly higher degree of security than most other kinds of
transactions, including e-mail or Internet credit card purchases. The level
of security required has Intel executives saying only that the computer
servers are hidden in Arizona. The American Medical Association will help
deliver the protected codes to its doctors. Many others will have to agree
to use the ID for the system to become a standard.
[SOURCE: USA Today (1A), AUTHOR: Janet Kornblum]
(http://www.usatoday.com/news/ndsmon02.htm)
See Also:
ONLINE ACCESS FOR DOCTORS
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Rob Kaiser]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99101201
63,FF.html)

E-COMMERCE TV OPENS IN BRITAIN
Issue: Convergence/Interactive TV
Today, BSkyB's digital satellite TV network is launching an interactive
service where people in Britain will be able to shop, bank and send e-mail
over their TV sets. The pay-TV giant is calling the service "Open" and it
will allow viewers to pay bills, buy groceries, play video games, message
friends and even order pizza by using portable keyboards and their TV
screens. Open will be available free of charge to the one million British
homes that already subscribe to BSkyB's year-old SkyDigital service, which
offers more than 140 video and audio channels. BSkyB and British
Telecommunications both own 32.5% of the new service, while banking giant
HSBC has 20% and Japanese technology group Matsushita Electric Industrial
owns the remaining 15%. Open Chief Executive James Ackerman said, "It will
enable millions to enter the digital age at a very low cost, through the
most familiar medium in the home and in a very secure environment."
[SOURCE: San Jose Mercury, AUTHOR: Jeff Daeschner]
(http://www.sjmercury.com/svtech/news/breaking/reuters/docs/949747l.htm)

FROM TWO SMALL NODES, A MIGHTY WEB HAS GROWN
Issue: Internet
The first email message was sent thirty years ago, on Oct. 29, over the
Internet's precursor, the Arpanet. There were only two nodes, one at the
Stanford Research Institute and the other at U.C.L.A., on the network built
by the Defense Department's Advanced Research Projects Agency. Slowly,
more nodes were added. And the Internet revolution had quietly began, with
one scarcely noticed milestone after another. More on the early years of
Internet history at the URL below.
[SOURCE: New York Times (D1), AUTHOR: George Johnson]
(http://www.nytimes.com/library/national/science/101299sci-internet-annivers
ary.html)

TELEPHONY

IN BRAZIL, MCI'S PLANNED PURCHASE OF SPRINT TRULY IS A BIG DEAL
Issue: Merger/International
The proposed merger of MCI Worldcom and Sprint will not only impact
customers in the U.S. The planned acquisition has set a shock wave through
the Latin America's largest telecommunications market: Brazil. The
country's major long distance carrier, Embratel, is owned by MCI Worldcom
and Sprint has a 25% stake in Intelig, a start-up competitor to Embratel.
Because Brazilian law prohibits a company from controlling an entire sector
of the market, a joint MCI/Sprint would have to divest some of its
Brazilian holdings. Meanwhile, several other international players are
attempting to take advantage of the recent sale of the state phone monopoly
known as Telebras. Telephonica SA of Spain, Portugal Telecom, and BellSouth
have all made significant investments.
[SOURCE: New York Times (C4), AUTHOR: Simon Romero]
(http://www.nytimes.com/)

AT&T, BRITISH TELECOM TO EXPAND ORCHESTRA FOR THEIR 'CONCERT'
Issue: Alliances/International
AT&T and British Telecommunications are pushing ahead with their
expansion plans for their new global venture, Concert. Concert has an
Internet-based network in 22 cities in 17 countries and plans to double that
reach by early next year. Concert will also expand its frame relay service
-- a high-speed network used by corporations -- by 50% to 60 countries.
Concert will own virtually all of the transmission facilities, switches and
other gear of the global network, giving it greater control over customer
service and making it easier to launch new offerings quickly. Previous
similar alliances that have failed were based on looser arrangements between
partners and scores of far-flung distributors, which led to network
incompatibilities. Concert is partly counting on size to help it achieve
success. It will have $10 billion in revenue, 8,500 employees and a network
reaching into 1,000 cities. Concert is awaiting approval from the Federal
Communications Commission, but it expects to be up and running a month after
receiving it.
[SOURCE: Wall Street Journal (A19), AUTHOR: Gautam Naik]
(http://interactive.wsj.com/articles/SB939677958799368.htm)

GLOBAL CROSSING WILL PURCHASE RACAL TELECOM FOR $1.01 BILLION
Issue: Merger
Global Crossing acquired Britain's Racal Telecom for 1 billion pounds ($1.01
billion). The deal transforms Global Crossing into a major player in the
European telecommunications market, pitting it against U.S. giants SBC
Communications and MCI WorldCom. It also accelerates the company's efforts
to build a worldwide phone network serving other international carriers and
multinational corporations. Robert Annunziata, Global Crossing's chief
executive said, "We've been looking around in Europe and Britain was the
piece that fit the best right now." Global Crossing's bid was all cash. This
deal gives Global Crossing a 7,300-kilometer fiber-optic network in the
U.K., 1,200 employees, and customers including the railway, government
agencies and a number of corporations. Annunziata said he is following a
two-track expansion strategy. The first step is to build a global backbone
network made of fiber-optic cables and the second is to go deeper into local
networks. Global Crossing is building a pan-European fiber-optic network
that connects nine countries.
[SOURCE: Wall Street Journal, AUTHOR: William Boston]
(http://interactive.wsj.com/articles/SB939678220511775160.htm)
See Also:
Global Crossing Buying a Telecommunications Unit in Britain (NYT)
[SOURCE: New York Times (C4), AUTHOR: Andrew Ross Sorkin]
(http://www.nytimes.com/yr/mo/day/news/financial/global-crossing.html)

COMPETITIVE RING TO THIS PLAN
Issue: Competition
In contrast to Chicago, a service area in which two potential competitors
have merged, local phone competition exists in Madison, Wisconsin where
even residential consumers can change their local provider. TDS Metrocom, a
subsidiary of Telephone & Data Systems Inc, ran a local phone monopoly in
nearby Waunakee and, emboldened by its success in Madison, is expanding
service into other Wisconsin cities and other states as well. TDS operates
~500,000 phone lines in 28 states, serving mostly rural customers.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99101202
95,FF.html)

FEDERAL-STATE JOINT CONFERENCE ON ADVANCED TELECOMMUNICATIONS SERVICES
Issue: Infrastructure Deployment/Regulation
The Commission adopted an Order convening a Federal-State Joint Conference
on advanced telecommunications services. The Joint Conference will provide a
forum for an ongoing dialogue between the Commission, state regulators, and
local and regional entities regarding the deployment of advanced
telecommunications capabilities.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99293.doc)

CABLE

FCC REVISES CABLE HORIZONTAL OWNERSHIP AND ATTRIBUTION RULES
Issue: Cable/ Ownership
From News Release: In two separate Report and Orders, the Federal
Communications Commission (FCC) revised its rules on the number of cable
subscribers an entity may reach and on the method for identifying
attributable cable ownership interests. The new cable horizontal ownership
rule maintains a 30 percent limit, but calculates total horizontal ownership
by counting nationwide subscribers of cable, direct broadcast satellite
(DBS) and other multi-channel video programming distributors (MVPDs), not
just cable homes passed. The FCC's revised cable attribution rules track
most of the revisions made to the broadcast attribution rules, define the
term "affiliate" and eliminate the single majority shareholder exemption.
The FCC also modified language related to the definition of an insulated
limited partner and changed the waiver standard for directors and officers
as they apply to ownership attribution under the cable horizontal ownership
limit and channel occupancy rules.
Cable Services Bureau Contacts: William Johnson, To-Quyen Truong at
(202)418-7200
[A full summary of the new rules is available at the URL below]
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Cable/News_Releases/1999/nrcb9016.html)
See Also:
AT&T BENEFITS AS FCC EASES CURBS ON OWNERSHIP IN CABLE TV INDUSTRY
[SOURCE: New York Times (A1) 10/9/99, AUTHOR: Stephen Labaton]
(http://www.nytimes.com/yr/mo/day/news/financial/fcc-cable.html)

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

Communications-related Headlines for 10/8/99

MERGERS
MCI-Sprint Is No Big Deal (WSJ)
FCC Set to Ease AT&T's Path on MediaOne Deal (WSJ)

INTERNET
States Just Won't Give Up on Online Pornography Laws (CyberTimes)
"Self-Destruct" Email Offers Virtual Privacy(USA)

RADIO
WorldSpace Ready For Radio Service(WP)

MERGERS

MCI-SPRINT IS NO BIG DEAL
Issue: Merger
[Op-Ed] "A merged MCI WorldCom and Sprint represents the best hope for a
strong and effective alternative to the mega-Bells and emerging AT&T cable
monopoly," says Bernard J. Ebbers, president and chief executive officer of
MCIWorldcom. According to Ebbers, the regional Bells and AT&T have the
"potential to establish telecom hegemony." AT&T, which will control 60% of
U.S. cable lines once its acquisition of MediaOne is approved, is growing
into a virtual cable monopoly. Consumers who wish to have broadband
services over cable will have do it on AT&T terms, or not at all. The
Bells, already major wireless providers, have consolidated local
operations and are moving toward becoming one-stop providers of a wide
range of voice and data services. Ebbers contends that a WorldCom Sprint
deal will benefit consumers by providing strong competition to an emerging
"Bell-AT&T duopoly."
[SOURCE: Wall Street Journal (A18), AUTHOR: Bernard Ebbers, president and
chief executive officer of MCIWorldcom, Inc.]
(http://wsj.com/)

FCC SET TO EASE AT&T'S PATH ON MEDIAONE DEAL
Issue: Mergers/Cable
The FCC is expected to revise the rules limiting ownership of cable-TV
systems, easing AT&T's acquisition of MediaOne Group. Currently the FCC
limits a company's total cable subscribers to 30% of all U.S. cable TV
households. The AT&T-MediaOne deal would result in a company with half of
all cable households. Through three rule changes, the FCC is expected to
effectively change its cable-TV ownership limits. It is expected that the
FCC will broaden the definition of the cable-TV market to include categories
such as satellite-TV subscribers; revamp its method of determining whether a
company's minority interest in a cable system qualifies it as an
attributable partner for the quota; and make wording changes to exempt
Internet and non-video cable-service subscribers from being counted towards
the 30% cap. Even with these changes AT&T will need to restructure the cable
systems to meet cable-ownership rules.
[SOURCE: Wall Street Journal (B2), AUTHOR: Kathy Chen]
(http://interactive.wsj.com/articles/SB939339024601298648.htm)

INTERNET

STATES JUST WON'T GIVE UP ON ONLINE PORNOGRAPHY LAWS
Issue: Internet Regulation
In the last three years states have four times passed laws designed to
restrict the online distribution of material deemed "harmful to minors."
Three of those laws have been struck down in Federal court on Constitutional
grounds. Given this unsuccessful track record, why do state legislators keep
on passing such laws? The sponsor of such a law in Virginia sums it up: "The
standard -- harmful to minors -- has been upheld. You can't sell Hustler
magazine to kids. But before my statute, you could have sold an electronic
file version of Hustler with all the pictures. Why should the format of this
thing make a difference?" The Virginia law makes it illegal for businesses
to engage in the "knowing" display to minors of sexually explicit
"electronic files or messages" deemed "harmful to juveniles." Opponents and
the courts have said the state laws interfere with the federal government's
right to regulate interstate trade, in part because they are an attempt to
impose state law on a national and global network. Internet publishers have
no way of knowing for sure who is viewing their content so, those who wanted
to comply with the law would need to self-censor material that may be
explicit or controversial but that adults have a right to view under the
First Amendment.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels (mendels( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/10/cyber/cyberlaw/08law.html)

"SELF-DESTRUCT" EMAIL OFFERS VIRTUAL PRIVACY
Issue: Privacy
Many email users have been burned when their emailed words come back to
haunt them. As much as 85% of the evidence in the Iran-contra hearings came
from restored e-mail. Similarly the US government has used internal messages
as evidence in its antitrust case against Microsoft. Disappearing
Incorporated, a small start-up firm in San Francisco, has devised a product
to take the longevity out of your email -- self destructing e-mail. Currently,
even if both sender and recipient delete a message, copies remain on
computers they can't access. When sending a message to a friend, a small
add-on filter to your e-mail program goes out across the Net and notifies
the Disappearing Inc. site after you hit the send key. The site assigns a
sent message an identifying number and gives the sender a software
"key" with which to scramble it. When the receiver of the email opens the
message, the same key from Disappearing Inc. unscrambles it. The email will
self-destruct based on the amount of time the key is to exist, which could
range from seconds to decades. When time is up, the key is deleted from
Disappearing Inc. Disappearing Inc.'s system is due early next year. It's
legal according to Disappearing co-founder Dave Marvit, who says. "If the feds
are knocking on your door and you start shredding, that's destruction of
evidence. But it's accepted business practice to regularly destroy
documents."
[SOURCE:USA Today, AUTHOR: Elizabeth Weise]
(http://www.usatoday.com/life/cyber/tech/review/crg441.htm)

RADIO

WORLDSPACE READY FOR RADIO SERVICE
Issue: Radio
WorldSpace Management Corporation., a District-based broadcasting company,
will begin satellite radio service to Africa and the Mediterranean region on
Oct. 19, after almost a decade of development. The company will transmit
news, entertainment and educational broadcasts from South Africa, Kenya,
Egypt and other nations in the region along with programming from CNN,
Bloomberg and other providers. The braodcasts will be transmitted via the
company's satellite to 30,000 customers who have purchased specially
designed digital radios. These radios will eventually be able to transfer
data and multimedia signals to personal computers. The company plans to
deploy three satellites to broadcast to underdeveloped nations around the
world.
[SOURCE:Washington Post, AUTHOR: Peter Behr]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-10/08/045l-100899-idx.html)

--------------------------------------------------------------
...and we are outta here. Enjoy the (long) weekend -- we'll see you on Tuesday.

Communications-related Headlines for 10/7/99

MERGERS
FCC OKs Ameritech's Takeover (ChiTrib)
FCC Begins Rewriting Rules for Industry in Consolidation (NYT)

DIGITAL DIVIDE
Study Aimed at Promoting Internet Access by Black Colleges (NTIA)

INTERNET
Virginia's Internet Law Challenged (WSJ)
Web Tools Connect Schools And Parents (SJM)

DIGITAL TV
Geocast Uses TV Stations To Broadcast Clips to PCs (WSJ)

NONPROFITS & TECHNOLOGY
Techie Volunteers Fill a Need at Charities and Schools (NYT)
Charity Concerts To Go On Internet (NYT)

MERGERS

FCC OKS AMERITECH'S TAKEOVER
Issue: Mergers
The Federal Communications Commission approved SBC's takeover of Ameritech
on Wednesday. The combined company will meet "unprecedented" conditions
meant, in part, to hasten competition in the local phone market. All five
Commissioners approved the $72 billion deal, but the FCC's Republican
members accused their colleagues of regulatory overzealousness and dissented
from the 30 conditions. "No proposed telecommunications industry merger that
has come before this commission has been more momentous than this," said FCC
Chairman Bill Kennard in a statement. "For that reason, none has been more
difficult, consumed more time, or engendered more passionate controversy on
both sides." The deal was originally announced in May 1998 and FCC approval
was the last regulatory hurdle. "The conditions to which SBC and Ameritech
agreed...will change the status quo to the benefit of telecommunications
consumers," Chairman Kennard said. "I am proud that we are able today to
announce this victory for consumers."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Frank James]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99100701
35,FF.html)
See Also:
FCC APPROVES SBC-AMERITECH MERGER
From Press Release: The Federal Communications Commission (FCC) approved
applications to transfer control of FCC licenses and lines from Ameritech
Corp. (Ameritech) to SBC Communications Inc. (SBC) subject to significant,
enforceable and unprecedented conditions. The 30 conditions are designed to
further open the local markets of these Regional Bell Operating Companies
(RBOCs) to competition, stimulate the deployment of advanced broadband
services, and to strengthen the merged firm's incentives to expand
competition outside its 13 state service area. The FCC found that with these
conditions the merger of SBC and Ameritech is in the public interest. Upon
consummation of this merger, SBC will control three of the original seven
RBOCs (SBC's Southwestern Bell Telephone and Pacific Telesis with
Ameritech). The 30 conditions adopted by the Commission are designed to
accomplish five central public interest goals: 1.) promoting equitable and
efficient advanced services deployment; 2.) ensuring open local markets; 3.)
fostering significant out-of-region competition for the first time by a Bell
Operating Company; 4.) improving residential phone service; and, 5.)
ensuring compliance with and enforcement of the conditions. An outline of
the conditions are available at
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrc9077a.html)
.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9077.html)

FCC BEGINS REWRITING RULES FOR INDUSTRY IN CONSOLIDATION
Issue: Mergers
Facing reviews of some $250 billion in proposed mergers, the Federal
Communications Commission has begun to set the conditions it will impose on
the deals that promise to consolidate, blur and redefine the nation's phone
cable, and broadcast industries. The FCC is trying to balance economies of
scale, which could result in lower prices, against large-scale
consolidations, which could result in less competition and higher prices.
"We are certainly not per se against consolidations, particularly those that
achieve the kinds of economies of scale that can help consumers," FCC
Chairman Kennard said Wednesday. "On the other hand, we are against those
consolidations that raise the barriers to entry by competitors." In the
phone market, the approval of the SBC-Ameritech merger means that just four
of the original seven Baby Bells remain; and the possible approval of the
Sprint-MCI WorldCom deal would mean four dominant long distance carriers
would have shrunk to two. "The obvious answer to all this," said Edward
Whitacre Jr., chairman of SBC, "is let everybody do everything." He means,
of course, to let the Baby Bells into the long distance market. In
broadcasting, the FCC must review the CBS-Viacom deal which, as structured
now, would exceed national audience caps. On Friday, the FCC will set new
rules on cable ownership concentration. The industry is watching whether the
agency will relax its standards to permit AT&T to complete the acquisition
of Mediaone. The aim of the rules to be announced on Friday would be to
prevent further consolidation of traditional cable service -- television --
while encouraging AT&T and its smaller competitors to continue to invest
heavily in developing networks capable of offering high-speed Internet and
telephone services as well.
[SOURCE: New York Times (A1/C1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/library/financial/100799telecom-mergers.html)

DIGITAL DIVIDE

STUDY AIMED AT PROMOTING INTERNET ACCESS BY BLACK COLLEGES
Issue: Digital Divide
From Press Release: Commerce Secretary William Daley today announced the
award of a $90,027 contract for a study on the status of telecommunications
capabilities of the nation's 116 historically black colleges and
universities as part of a Clinton-Gore Administration initiative to help
develop an information technology infrastructure that is accessible to all
Americans. Sec Daley said the study, to be conducted by the National
Association for Equal Opportunity in Higher Education, will enable the
Commerce Department to identify the technology and telecommunications needs
of black college and university communities and help determine how the
department can better assist them in accessing the Internet. The contract
for the study was awarded by the Commerce Department's NTIA. Besides helping
NTIA determine the computer capabilities of the black colleges, the study
will, among other things, help promote telecommunications innovation,
research and engineering, foster the institutions' continued growth in the
economy and increase opportunities for their participation in NTIA-
supported projects. The NAFEO is the only membership organization of all 116
historically and predominantly black colleges and universities in the nation
and administers a number of programs that seek to strengthen their
institutional capacities.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/nafeo100599pr.htm)

INTERNET

VIRGINIA'S INTERNET LAW CHALLENGED
Issue: Internet Regulation
Civil rights advocates and 15 Internet businesses filed a federal lawsuit
yesterday challenging the constitutionality of a new Virginia law that
seeks to ban commercial material from the Internet that could be considered
harmful to juveniles. Under the law, it is a crime to knowingly sell, rent
or loan to a juvenile electronic files or messages containing an image
"which depicts sexually explicit nudity, sexual conduct or sadomasochistic
abuse and which is harmful to juveniles." The law also bars the display of
such material for commercial purposes in ways that would enable juveniles
to "examine and peruse" it. The law also applies to verbal descriptions or
narrative accounts of sex. The lawsuit alleges that in the process of
shielding children from harmful material, Internet users and businesses
"will be obliged to self-censor their speech, thus reducing the adult
population in cyberspace to reading and communicating only material that is
suitable for juveniles." The lawsuit names Virginia Gov. James S. Gilmore
III and Attorney General Mark L. Earley as defendants. The Virginia
General Assembly enacted the law April 7 over the objections of Gilmore,
who tried to delay its consideration for a year, a spokeswoman for the
governor's office said. Officials say no one has been charged under the
law, which went into effect July 1. The misdemeanor carries penalties of up
to 12 months in jail and a fine of up to $2,500. Del. Robert G. Marshall
(R-Prince William), who sponsored the bill, said it was intended to target
a narrow audience -- those who sell pornography to children.
[SOURCE: The Washington Post (B1), AUTHOR: Leef Smith]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-10/07/264l-100799-idx.html
)

WEB TOOLS CONNECT SCHOOLS AND PARENTS
Issue: Ed-tech
A new computer system used at San Benito is one of a growing number that
enables parents to look up their children's report cards, test scores,
attendance records and class schedules. Many schools are turning to both
commercial software programs and Web-based systems that can be accessed by
parents from any Internet site to improve the way they get information to
parents. Access to these programs is free for parents but can cost the
school around $3,000 to acquire the software. San Benito High's Isis system
taps into information already collected for the campus' internal student
data system. National Computer Systems of Minnesota, which already makes
education computer systems, recently added Parent Connection, an
information system, which is revving up at 200 schools nationwide. EduLink
has sold systems to 25 schools in four states in the last four years.
Information available to parents will include immunization records,
disciplinary incidents and progress on assignments. One hurdle for these
programs lies in the fact that some parents and teachers are limited in
using the new Internet information by computer phobia and access.
Low-income parents are less likely to have computers at home while others
may not read English.
[SOURCE: San Jose Mercury News, AUTHOR:]
(http://www.mercurycenter.com/svtech/news/indepth/docs/school100799.htm)

DIGITAL TV

GEOCAST USES TV STATIONS TO BROADCAST CLIPS TO PCs
Issue: Digital TV
Geocast Network Systems Incorporated plans to use local stations' new
digital capabilities to broadcast TV clips to PCs. Geocast will use local
broadcast towers to shower digital bits on millions of PCs at speeds
greater that the fastest broadband cable or telephone pipes. Geocast is
designing a special $299 box that will receive and store TV programming,
then let consumers call up on their computers news clips, sports
highlights, music videos and other short programs. Viewers will use a
personalized Geocast browser to select specific local news clips, traffic
cameras along their commute routes, their favorite musicians or other
content that Geocast will collect and broadcast. Traditional Web surfing
isn't possible, but Geocast will let users easily revert to their
conventional browsers and Internet connections. There are many similarities
between Geocast's plan and the efforts of Excite At Home Corporation.
Geocast is signing up terrestrial broadcasters to dedicate a portion of
their digital bandwidth to its high-speed programming, whereas ExciteAtHome
has signed up cable-TV operators to jointly offer its slower speed
Internet service. Also like ExciteAtHome, Geocast is promising to relieve
its TV partners of the burden of operating their own back-end Internet
infrastructure. Additionally, Geocast hopes to be a "portal" like
ExciteAtHome -- a portal to the broadcast world that is...rather than to the
Internet.
While broadcasters have long believed the future of TV lies in improved
images known as high-definition television. A lack of compelling HDTV
programming, the high cost of HDTV sets and issues of poor quality of HDTV
reception have slowed the adoption of HDTV.
[SOURCE: Wall Street Journal (B14), AUTHOR: David Bank]
(http://interactive.wsj.com/articles/SB939251191691333670.htm)
SEE ALSO:
MERGING TV AND THE WEB
[SOURCE: The Washington Post (E1), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-srv/business/feed/a27985-1999oct7.htm)

NONPROFITS & TECHNOLOGY

TECHIE VOLUNTEERS FILL A NEED AT CHARITIES AND SCHOOLS
Issue: Nonprofits & Technology
There is a new brand of volunteers helping out in communities around the
nation. They are offering their computer skills to non-profits that might
not otherwise afford such services. "These places really need us," said
Carl Goldschmidt, a software engineer for HBO, who founded an organization
called Voluntech.org. "They can have the most caring staff in the world,
but you can't get anything done today without technology." Voluntech.org
has over 80 volunteers that work with almost 40 nonprofit groups, doing
things like setting up Web sites, designing databases and teaching Internet
classes. Another organization in New York City called Mouse, works to
integrate technology into the city's public schools. Compumentor, based in
San Francisco offers nonprofits and schools a host of services like
low-cost consulting services and year 2000 planning. The need for
volunteers or low-cost tech help is growing as the salaries of information
technology professionals have skyrocketed, making their services
unobtainable for many nonprofit groups.
[SOURCE: New York Times (E11), AUTHOR: Olivia J. Abel]
(http://www.nytimes.com/library/tech/99/10/circuits/articles/07volu.html)

CHARITY CONCERTS TO GO ON INTERNET
Issue: Nonprofits & Technology
In a departure from the traditional star-studded charity benefit, Netaid
will not conclude with this Saturday's Webcast of concerts in New Jersey,
London and Geneva. "We want to use the computer to help change how the
world looks at poverty and motivate people to help," said Djibril Diallo,
public affairs director for the United Nations agency that co-sponsors the
site (www.Netaid.org) with Cisco systems. Netaid.org is a clearinghouse of
information on world poverty and the agency's programs as well as a means
of raising money. The site, which can handle 60 million hits an hour, and
process 1,000 donations a second, expects millions of visitors for this
Saturday's Webcast featuring David Bowie, Sting and Sean "Puffy" Combs,
among others. "The difference between this and earlier concerts is that we
created a vehicle for people to come back, not just on the night of the
concert with the one check they write," said Mark Malloch Brown, the
development program's new administrator.
[SOURCE: New York Times (E10), AUTHOR: Michel Marriott]
(http://www.nytimes.com/library/tech/99/10/circuits/articles/07volu.html)

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

Communications-related Headlines for 10/6/99

MERGERS
Telecom Mergers Ring In A New Era of Competition (WSJ)
Merger Mania Runs Amok, And Consumers Will Pay (SJM)
F.C.C. Chief Says Phone Deal Faces Stiff Review (NYT)
Bundling Services Merger's True Calling (ChiTrib)
BellSouth Still has Merger Options (USA)
France Telecom's Accord for a Stake in E-Plus Marks Out Battle
Line With Deutsche Telekom (WSJ)

TELEPHONE REGULATION
Shouldn't Consumers Know About Hidden Taxes in Their
Phone Bills? (House)

INTERNET
AT&T Seeks to Deflect Internet Criticism (NYT)
Fremont First in U.S. to Adopt Cable ISP Service Standards (SJM)
FY 1999 TIIAP Grant Awards (NTIA)
For Black Dot-Coms, A New Band of Angels (WSJ)

MERGERS
F.C.C. CHIEF SAYS PHONE DEAL FACES STIFF REVIEW
Issue: Merger
The head of the Federal Communications Commission, William E. Kennard,
sharply questioned how MCI Worldcom's acquisition of Sprint could benefit
consumers and warned the companies would have to meet a high standard to
gain approval for the deal. "American consumers are enjoying the lowest
long-distance rates in history and the lowest Internet rates in the world
for one reason: competition," Kennard told reporters. "Competition has
produced a price war in the long-distance market. The merger appears to be
surrender. How can this be good for consumers?" he asked. Chairman Kennard
has not yet tried to block a single big deal reviewed by his agency, but
last year did remark that consolidation among long-distance providers had
prompted him to take a tougher stance toward any new deals that might
emerge. It is not known what concessions the FCC will want from MCI Worldcom
and Sprint, but there is speculation that Sprint will be required to sell
its Internet-services network and that both companies might have to sell
portions of their long-distance businesses.
[SOURCE: New York Times (A1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/library/financial/100699sprint-merger.html)
See Also
FCC CHIEF QUESTIONS PHONE DEAL
[SOURCE: Chicago Tribune (p.1), AUTHOR: Tim Jones]
(http://chicagotribune.com/news/printedition/article/0,2669,SAV-9910060079,F
F.html)

STATEMENT OF FCC CHAIRMAN WILLIAM E. KENNARD ON PROPOSED MERGER OF MCI
WORLDCOM AND SPRINT
Issue: Mergers
American consumers are enjoying the lowest long distance rates in history
and the lowest Internet rates in the world for one reason: competition.
Competition has produced a price war in the long distance market. This
merger appears to be a surrender. How can this be good for consumers? The
parties will bear a heavy burden to show how consumers would be better off.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/stwek959.html)

TELECOM MERGERS RING IN A NEW ERA OF COMPETITION
Issue: Merger
[OP-ED] Peter Huber argues that analyst are wrong to believe the MCI
Worldcom/Sprint merger is just further evidence that the Telecommunications
Act of 1996 has failed. He believes the Telecom Act has done the industry
justice by establishing a process to reassemble the broken pieces of Ma
Bell. Huber says the wireless industry was given the ability to consolidate
earlier by Congress. The old antitrust model from 1984 no longer applies
and the government needs to streamline a process for mergers so that they
are not going through the FCC and the Justice Department. The scope of
regulation should shrink and, he writes, "One happy day we'll wake up to
find that there's nothing left of the regulatory edifice but the smile."
[SOURCE: Wall Street Journal (A22), AUTHOR: Peter Huber is a senior fellow
of the Manhattan Institute and author of "Law and Disorder in Cyberspace")
(http://interactive.wsj.com/articles/SB939160639391596998.htm)

MERGER MANIA RUNS AMOK, AND CONSUMERS WILL PAY
Issue: Mergers
[Editorial] As Dan Gillmor sees it, there no question that MCI Worldcom's
planed acquisition of Sprint would be bad for consumers. Backers of
telecommunication deregulation promised it would create competition, but
this deal, along with other recent mergers, will only decrease customer
choices. Merger mania has already reduced the number of regional Bells from
eight
to just four. While FCC Chairman William Kennard has vowed to critically
examine the competitive impact of the MCI WorldCom-Sprint merger before
approving it, his recent record suggests that he has no plans to slow the
rampant consolidation that has taken hold of the telecommunications
industry. If, however, he is true to his word regarding this merger, it
might lead some to ask, Why now? "Because this is a plainly anti-competitive
deal, that's why," answers Gillmor.
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
(http://www.mercurycenter.com/svtech/columns/gillmor/docs/dg100699.htm)

BUNDLING SERVICES MERGER'S TRUE CALLING
Issue: Mergers
The real result of the deal is the ability to bundle telecommunications
services:
local and long distance, wireless, cable, and high-speed Internet access.
"We're moving into the direction now where every company offers everything
to everybody," said Jeffrey Kagan, an Atlanta-based telecommunications
analyst. It may be a few years before consumers see the benefits of bundling
-- first, AT&T and MCIWorldCom must handle technical problems, consolidate
billing departments and win regulatory approval. The plan is to offer
broadband networks to the home that can deliver the Internet, voice and
video service over one line. "You pay for time used on the network," Kagan
said. "That's the future. It's where distance doesn't matter, whether it's a
call across the street, across the country or across the world. It's sort of
like e-mail; it doesn't matter where you send it."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Rob Kaiser]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99100601
29,FF.html)

BELLSOUTH STILL HAS MERGER OPTIONS
Issue: Mergers
As Bell South is closed out of the bidding for Sprint, it looks for another
partner to help it become a one-stop-shop for telecommunication
services. "The dance isn't over," says analyst Jeffery Kagan, referring to
the current phone merger frenzy. Bell South probably has its sights set on
a long-distance player such as Qwest or Global Crossing-Frontier, but there
are also talks of it combining with the national wireless company Nextel.
But just as the Bells are looking for partners, so are the local competitive
exchange companies that are challenging them.
[SOURCE: USA Today (3B), AUTHOR: Paul Davidson]
(http://www.usatoday.com/)

DEAL LEAVES EUROPEAN PHONE FIRMS SEEKING GLOBAL TIES
Issue: Mergers
The MCI-Sprint merger may present new challenges to European phone companies
that have already had trouble forging international ventures. In Europe,
telecommunications companies are faced with many of the same technological
and regulatory issues that have redrawn the telecommunications landscape in
the United States, plus another factor: nationalism. Each big carrier needs
to establish international links to be globally competitive, and yet keep
from losing its identity. "A lot of these companies are making some strange
decisions," said Steve Jobbers, an analyst with Paribas in London. He
pointed out that these European companies have a high proportion of
foreign-investor ownership--sometimes as high as 40 percent to 50 percent --
and the foreign investors sometimes know little about the country or the
culture in which the company operates.
[SOURCE: Washington Post (E3), AUTHOR: Anne Swardson]
(http://www.washingtonpost.com/wp-srv/business/feed/a23093-1999oct6.htm)
SEE ALSO:
TELECOM FIRMS MAY NEED TO MERGE TO COMPETE WITH NEW US GIANT
[SOURCE: Wall Street Journal (A17), AUTHOR: Gautam Naik]
(http://interactive.wsj.com/articles/SB939162672622507864.htm)

FRANCE TELECOM'S ACCORD FOR A STAKE IN E-PLUS MARKS OUT BATTLE LINE
WITH DEUTSCHE TELEKOM
Issue: Wireless
Deutsche Telekom and France Telecom are drawing battle lines over a tiny
mobile-phone operator called E-Plus Mobilfunk. France Telecom is aiming to
use the company to hit its former German partner Deutsche Telekom where it
hurts the most. E-Plus is a small, yet national, cellular-phone network
providing rare entry into Germany's 50 billion euro ($53.69 billion)
telecommunications market, Europe's largest, and it is for sale. E-Plus has
even greater strategic value because it provides a national network that
reaches 98% of the German population and has a customer base of three
million subscribers that is growing fast. But before France Telecom can buy
E-Plus, there are still some obstacles to clear with Bell South and other
stakeholders. After Sprint is merged with MCI WorldCom, France Telecom and
Deutsche Telekom expect a combined windfall profit of about 15 billion euros
from the sale of their combined 20% stake in Sprint. That is quite a war
chest that both companies plan to use for acquisitions. [We like the name
"France Mobilfunk" -- should be very popular in urban areas)
[SOURCE: Wall Street Journal, (A17), AUTHOR: William Boston]
(http://interactive.wsj.com/articles/SB939073955192972185.htm)

TELEPHONE REGULATION

SHOULDN'T CONSUMERS KNOW ABOUT HIDDEN TAXES IN THEIR PHONE BILLS?
Issue: Telephone Regulation
[From Press Release] Shouldn't consumers know about taxes hidden in their
monthly phone bills? Chairman Tom Bliley (R-VA) and Subcommittee Chairman
Billy Tauzin (R-LA) think so. Today they introduced a bill which would give
consumers more information about all the hidden taxes in their monthly phone
bills. H.R. 3011, the Truth In Telephone Billing Act of 1999 was introduced
by Bliley and Tauzin today. If the Bliley-Tauzin tax bill is signed into
law, our monthly phone bills would look a lot different than they do today.
Monthly phone bills would disclose: all government programs for which the
telephone company is being taxed, the government entity imposing the tax;
the form in which the tax is assessed; and, a separate line-item that
identifies the dollar amount of the consumer's bill that is attributable to
the government programs.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/8e1db6087c4cbcee8525680100539704?OpenDocument)

INTERNET

AT&T SEEKS TO DEFLECT INTERNET CRITICISM
Issue: Broadband
In the face of ongoing criticism for not giving independent Internet
service providers direct access to its cable television systems, AT&T is
considering plans to open access to its cable networks within a few years.
AT&T says it cannot provide access sooner, because it is obligated
to give Excite( at )Home exclusive cable access until 2002. America Online,
other Internet service providers, and local phone companies have engaged in
a major lobbying campaign in Washington and around the country to force
what is called "open access" to AT&T's cable lines. Caving to mounting
pressure, AT&T may soon release details of how independent Internet service
providers will be allowed access to its cable systems once it's contract
with Excite( at )Home expires.
[SOURCE: New York Times (B1), AUTHOR:Seth Schiesel]
(http://www.nytimes.com/library/tech/99/10/biztech/articles/06access.html)

FREMONT FIRST IN U.S. TO ADOPT CABLE ISP SERVICE STANDARDS
Issue: Broadband
Last night, Fremont, California became the first city in America to impose
minimum service standards on a high-speed cable Internet provider. The
Fremont City Council voted 4-0 for a new ordinance where AT&T( at )Home will
have to answer telephones without delay, fix service within 24 hours,
install new service
within two weeks and provide more payment options. The standards are based
on similar ones used to govern cable TV service. This vote came after months
of complaints from residents about shoddy service from AT&T( at )Home, a leading
cable Internet provider. Fremont can fine the company up to $9,000 every
three months or require it to provide certain services for free, depending
on the nature and extent of any violations. AT&T spokesman Andrew Johnson
said the company has no objection to meeting Fremont's standards. "We were
part of the process," he said. Several Fremont residents at the meeting
complained that the new standards are only small steps toward fixing the
company's overall service problems, including slow or inoperative Internet
access. Since AT&T bought TCI, the company holds the franchise to provide
cable service in Fremont, a city of more than 200,000 residents. An
estimated 10,000 residents pay the approximately $39.95 monthly fee to
subscribe. While some of the ( at )Home users complain their Internet connection
has slowed in recent months, their biggest gripe is the company's slowness
in answering e-mails and telephone calls. Some phone waits have been as long
as two hours.
[SOURCE: San Jose Mercury, AUTHOR: Lisa Fernandez and Dennis Akizuki]
(http://www.sjmercury.com/svtech/news/breaking/merc/docs/cable100699.htm)

FY 1999 TIIAP GRANT AWARDS
Issue: Access
The Clinton-Gore Administration/ Commerce Department announced the names of
43 new TIIAP grant recipients. The nonprofit and governmental organizations
will receive more than $17 million in matching funds to advance innovative
uses of networking technologies. The funds will be used to improve delivery
of social services and bring the benefits of information technology to
underserved areas of the country. "These investments will help close the
digital divide by promoting innovative applications of the and information
technology in underserved urban and rural communities," President Clinton
said. The Commerce Departments National Telecommunications and Information
Administration (NTIA) administers the Telecommunications and Information
Infrastructure Assistance Program (TIIAP). Larry Irving , assistant
secretary of Commerce noted a significant trend in this years grantees.
"More communities are making communications tools available to their
citizens and community leaders, empowering them to more effectively
determine the community's need and target resources better." See links to
this year's winners at
(http://ntiaotiant1.ntia.doc.gov/cfdocs/tiiap/99grants.cfm).
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/tiiap100599.htm)
See Also:
Yesterday the NTIA announced the release of a new report:
"How Access Benefits Children: Connecting Our Kids to the World of
Information."
(http://www.ntia.doc.gov/otiahome/tiiap/resources/How_ABC.pdf)
In the tradition of the "Falling Through the Net" series, the report
presents a case for why disparities in access are troubling and need to be
addressed. The report presents a toolkit of how these disparities can be
addressed
through 11 stories about people working with children and technology.
All of the projects described are TIIAP grant recipients, but are not
Washington-based projects. Instead each story reflects a local
community's efforts. Information of the report can be found at
http://www.ntia.doc.gov/ntiahome/press/kids100599pr.htm)

FOR BLACK DOT-COMS, A NEW BAND OF ANGELS
Issue: E-Commerce
Carthage Partners has a strong interest in investing in Black Internet
start-ups. After the initial round of seed capital from "friends, family and
fools" initial public offering-candidates need support in the millions of
dollars from generous "angels" willing to gamble on a business plan. Because
the typical high-tech entrepreneur is based on the West Coast, geography
creates an opportunity for the New York-based firm. "We compete on our
ability to spot these kinds of guys before anyone else does," said Charles
A. Sheffield, one of Carthage's four partners. While Carthage Partners backs
Black Internet software companies, the audiences of the companies are
generally more diverse.
[SOURCE: The Wall Street Journal, AUTHOR: Staff Writer]
(http://interactive.wsj.com/articles/SB939165703301846110.htm)

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

Communications-related Headlines for 10/5/99

MERGERS
MCI WorldCom to Buy Sprint In Record $115 Billion Takeover (WSJ)
The Leader in U.S. Radio to Buy No. 2 (NYT)
TV Guide Sold for $9.2 Billion in Stock Deal (NYT)
Electronic Rival To Buy TV Guide (WP)
Travelocity To Merge With Top Online Rival (WP)

INTERNET
Internet Age Threatens To End Free Speech (USA)
Capital Dispatch: House and Senate Hammer Out (NTY)
Filtering Proposals (CyberTimes)
Drug Buying on the Web? Be Careful, Study Says (NYT)
Capital Dispatch: Pharmacists Set Up Own Standards (CyberTimes)
Companies With Virtual Environments Find Success in
Retaining Workers (WSJ)

BROADBAND
Portland Ups The Ante (B&C)
Big Landlords Join Telecom Fray (WSJ)

MEDIA & SOCIETY
The Message is the Medium (ChiTrib)

MERGERS
MCI WORLDCOM TO BUY SPRINT IN RECORD $115 BILLION TAKEOVER
Issue: Merger
MCI Worldcom reached an agreement to acquire Sprint for a record $115
billion in stock, the largest takeover in history. The pact was reached
after the upstart MCI Worldcom sweetened its bid following an attempt by
BellSouth to get in on the action. BellSouth tried to improve its offer for
Sprint yesterday, but MCI WorldCom's willingness to step up to the
plate with a huge bid won over. The deal will bring together the
nation's second and third largest long-distance carriers with an estimated
combined revenue of about $50 billion. The two companies will have 30% of
the consumer long-distance market, with more than 30 million long-distance
customers. The combination will create a company with a stock-market value
of $200 billion or more, making it the biggest telecommunications company in
the world when its wireless assets are included. Until now, MCI Worldcom did
not feel the need to own a wireless network -- but the use of cell phones is
to the point now where users outnumber cable subscribers.
[SOURCE: Wall Street Journal (A1), AUTHOR: Steven Lipin, Nicole Harris and
Rebecca Blumenstein]
(http://interactive.wsj.com/articles/SB939080169972260362.htm)
See Also:
MCI TO BUY SPRINT IN SWAP OF STOCK FOR $108 BILLION
Issue: Mergers
[SOURCE: New York Times (A1)]
(http://www.nytimes.com/library/financial/100599sprint-merger.html)

THE LEADER IN U.S. RADIO TO BUY NO. 2
Issue: Mergers
The recently announced deal between radio giants AMFM Inc. and Clear
Channel underscores the movement toward consolidation in the media
industry, especially radio. While current federal regulations do not set a
national limit on how many of the country's 10,000 radio stations one
company can own, the Federal Communications Commission does have rules on
how many stations a company can own in a given city. Even though federal
regulations will force Clear Channel to divest about 125 stations, the two
companies would still own almost 1,000 stations, about 10 percent of the
nation's total. "They'll have a powerful national platform and they'll be
all but a must buy for national advertisers. This is the first time a radio
company was truly national outside of syndication companies, " says Jessica
Reif-Cohen, a media analyst with Merrill Lynch.
[SOURCE: New York Times (C1), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/radio-merger.html)
See Also:
MEDIA COLOSSUS: RADIO GIANTS UNITE
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99100502
40,FF.html)

TV GUIDE SOLD FOR $9.2 BILLION IN STOCK DEAL
Issue: Merger
Gemstar International Group, a developer of Interactive video program
guides, announced Monday that it was buying TV Guide, the nation's
best-selling magazine with a weekly circulation of about 12 million.
The deal, which combines TV Guide's access to programming information with
Gemstar's technical ability to create interactive program guides, may
ultimately contribute to a change in the way that Americans choose their
television programs, watch advertising campaigns and even purchase
products. It also offers the potential for electronic commerce through the
television set. Subject to approval by the Securities and Exchange
Commission, the merger will help TV Guide and Gemstar develop programs with
interactive and e-commerce capabilities that would allow viewers in the
future to purchase products showcased on television programs. "The
interactive guide then becomes the pivotal point for a consumer who sits
down in front of their television," said Peter Boylan, the president of TV
Guide. "We think it is a win-win deal enabling us to get on with what we
think is a great opportunity."
[SOURCE: New York Times (C1), AUTHOR: Alex Kuczynski]
(http://www.nytimes.com/yr/mo/day/news/financial/tvguide-gemstar.html)
See Also:

ELECTRONIC RIVAL TO BUY TV GUIDE
Issue: Merger
Gemstar International Group Ltd., a producer of electronic guides for
television, and TV Guide Incorporated have agreed to a $9.2 billion merger.
The two emerging industry leaders will unite at a time when new broadband
digital technologies are entering households and are expected to spur
two-way communication over TV sets. Program guides offer daily schedules,
commercials, and highlights of specials or pay-per-view movies on cable and
satellite TV. The program guides would serve as a tool through which
customers can navigate numerous channels, commercials and electronic
commerce sites in this future world of digital TV, similar to an Internet
user perusing a Web "portal" site. TV Guide operates the TV Guide channel
on cable systems which reach 50 million U.S. households. Gemstar's program
guide is used by satellite and cable TV systems, and its VCR Plus
programming tool gives TV watchers the ability to tape shows using viewer
codes that are published in more than 1,800 newspapers and program guides
around the world. The deal, which will create TV Guide International
Incorporated, has the support of each company's principal stockholders,
including cable company Liberty Media Group and media baron Rupert
Murdoch's News Corp., which each own 44 percent of TV Guide. TV Guide
International acquires the strong brand name of TV Guide and its
magazine.
[SOURCE: Washington Post (E3), AUTHOR: Bob Tourtellotte]
(http://www.washingtonpost.com/wp-srv/business/feed/a18087-1999oct5.htm)

TRAVELOCITY TO MERGE WITH TOP ONLINE RIVAL
Issue: Merger
Sabre Holdings Corporation announced it plans to buy Preview Travel
Incorporated and subsequently merge the travel service entity with
its own service, Travelocity.com. The new company will be called
Travelocity.com and have more than $1 billion in annual sales along with
about 17 million registered users. Preview Travel is valued at about $243
million. The newly merged Travelocity will be the dominant player in
the fast-growing online travel business. Travel-related e-commerce is
expected to grow from $7.8 billion in 1999 to $32.1 billion by 2004,
according to Forrester Research Incorporated. AMR Corporation, parent of
American Airlines, owns about 82 percent of Sabre, which operates a
profitable computerized reservation service used by travel agents worldwide
as well as by individual users of its Travelocity site. In two separate
announcements American Online Incorporated and Yahoo incorporated
indicated that they plan to use Travelocity extensively on their sites.
Travelocity will pay AOL $200 million over five years to be the exclusive
travel agent on all AOL sites. Yahoo has extended an existing contract
and will make a minority investment in Travelocity.com. Travelocity is
currently the Web's top travel site, followed by Preview and then
Microsoft's Expedia, according to NetRatings. None of the sites makes money.
[SOURCE: Washington Post (E1), AUTHOR: Shannon Henry]
(http://www.washingtonpost.com/wp-srv/business/feed/a18094-1999oct5.htm)
See Also:
TRAVELOCITY MAKES A DEAL TO DOMINATE WEB MARKET
[SOURCE: New York Times (C7), AUTHOR: Saul Hansell]
(http://www.nytimes.com/)

INTERNET

INTERNET AGE THREATENS TO END FREE SPEECH
[Op-Ed] Philip Meyer cites public opinion polls showing growing distrust of
the
press and a long list of judicial decisions going against the media. This
year, a survey sponsored by the Freedom Forum First Amendment Center at
Vanderbilt University found that 53% of adults agreed the press has too
much freedom - up from 38% two years earlier. Not too far off in the new
century, Meyer predicts we will have to decide whether the First Amendment
guarantee of a free press, which now includes an unregulated Internet, is
worth keeping. The current sentiment expressed in the polls' findings would
lead us toward a "no" response. While technology helped develop the concept of
free speech it we know it today, it is now threatening its existence. Prior
to the advent of the Internet, the entry costs required to obtain a
printing press or broadcast transmitter limited the maximum number of
information providers. Thanks to the Internet there is no theoretical limit
to the number of potential message senders or their audience size. Closely
held power is becoming widely diffused and out of control. The resulting
noisy confusion has created at least three social forces that are putting
pressure on freedom of speech: 1.) the low priority that owners of mass
media give to public service since breaking the attention barrier now is
their first concern, 2.) journalism's fading identity as a distinct
profession as it slowly merges with advertising, public relations and
entertainment. 3.) the loss of the First Amendment's philosophical
underpinning, the belief that there is such a thing as objective truth to
report. "First amendment defenders will make themselves convincing only if
they go after the abusers of First Amendment power. If they don't, the
people, speaking through judges, juries and eventually their elected
officeholders, will do it for them."
[SOURCE: USA Today (17A), AUTHOR: Philip Meyer, holder of the Knight Chair
in Journalism at the University of North Carolina, Chapel Hill, is a
consultant for USA TODAY]
(http://www.usatoday.com/news/comment/ncguest.htm)

CAPITAL DISPATCH: HOUSE AND SENATE HAMMER OUT FILTERING PROPOSALS
Issue: Internet/Content
Both Houses of Congress have once again added Internet filtering proposals
to their juvenile justice bills. The House bill would require all schools
and libraries receiving money from the federal E-rate program to use
filtering and blocking software. The Senate version of the bill does not
include a school and library filtering mandate, but would require all
Internet service providers with 50,000 or more subscribers to give
residential customers access to filtering software either free or at cost.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/10/cyber/capital/05capital.html)

DRUG BUYING ON THE WEB? BE CAREFUL, STUDY SAYS
Issue: Health/Internet
A report by University of Pennsylvania Medical School researchers who
examined 46 online pharmacy sites found that buying prescriptions via the
Internet might be expensive and dangerous. Most of the sites in the study
required prescriptions, either from the patient's doctor or from the Web
site's online doctors, but nine sites, all overseas, required no
prescription at all. The report concluded that the greatest risk posed by
the sites was the online "doctors," often of unknown credentials, who
might prescribe a drug that would harm the patient. "Who are you really
talking to?" asked lead researcher, Dr. Bernard S. Bloom. "Is it truly a
physician? We don't know. None of the sites would tell you the name of the
physicians, where they were, their training or qualifications or anything
about the individual with whom the patient was corresponding electronically."
[SOURCE: New York Times (D7), AUTHOR: Denise Grady]
(http://www.nytimes.com/library/national/science/health/100599hth-drugs-inte
rnet.html)

CAPITAL DISPATCH: PHARMACISTS SET UP OWN STANDARDS
Issue: Health/ Internet
As the online pharmacy business comes under increased scrutiny by
regulators and Congress, one of the industry's governing body's has
developed a comprehensive program, called the Verified Internet Pharmacy
Practice Sites, for certifying online druggists that comply with state
licensing standards. "As more consumers turn to the Internet marketplace as
a convenient shopping alternative, the risk for exposure to deception and
dangerous scams increases," said Kevin E. Kinkade, the association's
executive committee chairman. "VIPPS will be of tremendous benefit to
consumers who need to be certain that the prescription medicines they
receive are from legitimate online pharmacies." Although there are more
than 400 Web sites currently dispensing drugs online, only three have so
far been given the VIPPS seal.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/10/cyber/capital/05capital.html)

COMPANIES WITH VIRTUAL ENVIRONMENTS FIND SUCCESS IN RETAINING WORKERS
Issue: Jobs
According to research by Ceridian Employer Services, companies having
problems retaining workers might take a look at where they are
technologically. Ceridian's survey found that 50% of employees it polled at
small and large companies said the ability to work in virtual teams or to
telecommute was a very attractive incentive to join a company. About 66%
said that having these work methods at their disposal was an "excellent"
reason to stay with a company. But small companies seem to be lagging as
only two of five small companies surveyed allow telecommuting and less than
a third have virtual teams for workers. On the other hand, 90% of large
companies (with more than 5,000 employees) allow telecommuting and 52% use
virtual teams. "Potential employees today, particularly younger ones, are so
sophisticated in the use of PCs and the Internet, they can question the
commitment to the future of an employer that ignores the use of these tools
to increase productivity," says Brian Regan, a Ceridian vice president.
Regan says small companies need to create "boundaryless" work arrangements
that allow employees to work outside the conventional and traditional
boundaries of place and hierarchy. The hesitation for small businesses, not
surprisingly, is scarce financial resources.
[SOURCE: Wall Street Journal, AUTHOR: Eleena De Lisser]
(http://interactive.wsj.com/articles/SB939073955192972185.htm)

BROADBAND

PORTLAND UPS THE ANTE
Issue: Broadband
Portland officials have extended an invitation to would-be competitors of
AT&T. The Request For Qualifications (RFQ) "seeks a provider willing to
build a broadband network in Portland to offer high-speed access as well as
video, voice and other data services." Portland and AT&T Broadband &
Internet Services have been butting heads for a while now over whether
Portland's franchising authority can order AT&T to lease part of its cable
network to competing Internet service providers. So far, the city has
convinced the US District Court of Portland, although an appeal is pending.
RFQ is partially a response to AT&T's decision not to offer its ( at )Home
Internet Service in Portland in light of the local government's desire to
promote competition, according to city officials. AT&T has indicated it
will not offer high-speed access in any city that imposes a cable access
requirement.
[SOURCE: Broadcasting & Cable, AUTHOR: Price Colman]
(http://www.broadcastingcable.com)

BIG LANDLORDS JOIN TELECOM FRAY
Issue: Broadband/Competition
Eight of the nation's biggest office landlords and venture-capital firm
Kleiner Perkins Caufield & Byers are making an unusual leap into the crowded
telecommunications arena as they are expected to announce today that they
have formed a new company, Broadband Office. Broadband Office will offer
tenants both local and long-distance phone service as well as high-speed
data lines. Broadband Office's owners control 2,000 buildings, representing
about 10% of the nation's offices. According to International Data Corp.,
businesses spend about $125 billion annually on telephone service -- and
these landlords would like to take some of that business away from the Baby
Bells, long-distance and start-up companies. Investors in Broadband Office
say they will appeal to tenants on simplicity, convenience and cost. The
company will offer a single contact for local phone service, long-distance,
and data connections. Broadband Office expects to raise $50 million to $100
million in equity to install high-speed equipment and wire
buildings during the next year. The backers say they won't force tenants to
use Broadband Office and will give other telecommunications companies access
to their buildings -- they will only refer them to the new service. The
company has recruited executives from MCI WorldCom, BellSouth and Level 3
Communications.
[SOURCE: Wall Street Journal, (B1), AUTHOR: Scott Thurm and Barbara
Martinez]
(http://interactive.wsj.com/articles/SB939079662533053287.htm)

MEDIA & SOCIETY

THE MESSAGE IS THE MEDIUM
Issue: Media & Society
What does it mean to say that we live in the information culture? Less a
statement about technology, it is an acknowledgement that everything is
information: music, stories, feelings, ideas, silences, quirky news
summaries. We have to remember that the real information lives beneath the
0s and 1s that make up digital messages. Keller uses the movie "The Matrix"
as a backdrop for this examination as well as the lyrics of Bruce
Springsteen and the writing of Wayne Johnson.
[SOURCE: Chicago Tribune (Sec 5, p.3), AUTHOR: Julia Keller]
(http://chicagotribune.com/leisure/tempo/printedition/article/0,2669,SAV-991
0050151,FF.html)

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

Communications-related Headlines for 10/5/99

BROADBAND
Portland Ups The Ante (B&C)
Big Landlords Join Telecom Fray (WSJ)

MEDIA & SOCIETY
The Message is the Medium (ChiTrib)

INTERNET

BROADBAND

MEDIA & SOCIETY

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

Communications-related Headlines for 10/4/99

DIGITAL DIVIDE
Help the World Connect

MERGERS
Dueling Bids Emerge for Sprint, 3rd-Largest Long Distance Carrier (NYT)
FCC Expected to Approve SBC-Ameritech Merger (NYT)
Clear Channel to Buy AMFM In $17.4 Billion Stock Swap (WSJ)

INTERNET
Ecommerce Report: Publishers Seek to Conquer Readers'
Sales Resistance (NYT)
Career Sites Gain Rapidly, Along With Job Hopping (NYT)
Cybertainment: Surfing Banned Books Freely (SJM)

DIGITAL TELEVISION
Transmission Standards for Digital Television (FCC)

DIGITAL DIVIDE

HELPING THE WORLD CONNECT
Issue: Digital Divide
[OP-ED] Twenty-first century philanthropists seeking to effect real social
change should look back to an early 20th century inspiration: Andrew
Carnegie. Rather than convene conferences in beautiful places, or erect
large columned buildings, their efforts would be better spent creating
"pocket-sized places in poor neighborhoods and communities... where digital
have-nots can gain access to the accumulated knowledge of mankind." These
smaller digital libraries could address literacy, health, hygiene, and
marketable job skills by augmenting a print collection with educational
software, teachers, books on CD-ROM and "all the rest of the world's books"
by Internet. "Most people who are poor do not want to be poor, but they do
not know the route out of poverty."
[SOURCE: Wall Street Journal, AUTHOR: Robert B. Reich, former Secretary of
Labor]
(http://interactive.wsj.com/articles/SB938807691110527894.htm)

MERGERS

DUELING BIDS EMERGE FOR SPRINT, 3RD-LARGEST LONG DISTANCE CARRIER
Issue: Mergers
In what could be the largest business merger yet, the board of Sprint, the
3rd-largest long distance provider, met over the weekend to consider a
friendly, $93 billion merger from MCI WorldCom and an unsolicited $100
billion offer from Bell South. Sprint's assets include an extensive national
and international long distance network, some local phone operations, a
national wireless network and one of the major Internet backbone networks.
The takeover fight, Holson & Schiesel write, escalates the intensity of the
consolidation that is sweeping the telecommunications industry, as even the
giants scramble for greater geographic reach and financial heft, and the
ability to offer a full line of local, long-distance, wireless and Internet
access services. Both possible deals would face tough regulatory review.
[SOURCE: New York Times (A1), AUTHOR: Holson & Schiesel]
(http://www.nytimes.com/library/tech/99/10/biztech/articles/04sprint.html)
See Also:
BELLSOUTH MAKES OFFER TO ACQUIRE RIVAL SPRINT
[SOURCE: Wall Street Journal, AUTHOR: Steven Lipin & Rebecca Blumenstein]
(http://interactive.wsj.com/articles/SB938984894652030165.htm)

FCC EXPECTED TO APPROVE SBC-AMERITECH MERGER
Issue: Mergers
The Federal Communications Commission may approve the merger of SBC and
Ameritech as soon as today. The deal would result in the creation of the
largest local phone carrier in the US with more than $46 billion in revenue
and dominance of markets from Chicago to Houston to San Francisco. A vote on
the deal has been delayed for some time by opposition from House Commerce
Committee Chairman Thomas Bliley (R-VA). During the summer, FCC staff
negotiated a deal with SBC and Ameritech to open up their markets in
exchange for support of the deal. Rep Bliley -- and FCC Commissioner Harold
Furchtgott-Roth -- have ben critical of that process.
[SOURCE: New York Times (C2), AUTHOR: ]
(http://www.nytimes.com/library/tech/99/10/biztech/articles/04phon.html)

CLEAR CHANNEL TO BUY AMFM IN $17.4 BILLION STOCK SWAP
Issue: Merger
Clear Channel Communications reached a $17.4 billion definitive agreement to
acquire AMFM. AMFM stockholders will receive 0.94 of a Clear Channel shares
for each
AMFM share and the combined entity will retain the Clear Channel name.
Clear Channel will also assume $6.1 billion of AMFM debt. Clear Channel
Communications and AMFM said they may collectively divest 125 radio stations
to secure regulatory approval for the deal. After such divestitures, the
combined company will have operations in 32 countries including about 830
radio stations, more than 425,000 outdoor displays and own 19 television
stations. The deal is expected be completed in the second half of
2000.
[SOURCE: Wall Street Journal, AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB939033756428567425.htm)

INTERNET

ECOMMERCE REPORT: PUBLISHERS SEEK TO CONQUER READERS' SALES RESISTANCE
Issue: E-Commerce
The publishing industry has faced an uphill battle trying to turn a profit
on the Internet with audiences generally unwilling to pay for content.
Online content providers must confront many obstacles including
recalcitrant authors, the potential for piracy and the reluctance of users
to buy information they believe they can find elsewhere on the Web.
According to a recent survey by Jupiter Communications, 46 percent of
Internet users said they would not pay to view a Web site's content.
However, this figure is down from 57 percent of respondents who
said last year they would not pay to view editorial content. Those who are
willing to pay for information usually include business and professional
users because companies are able and willing to pay for information they
believe can help employees do their jobs better. In pursuing that market
publishers are maintaining a two-track pricing strategy: subscriptions and
pay-for-view. Neither has seen much success yet.
[SOURCE: New York Times (C14), AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/99/10/cyber/commerce/04commerce.html)

CAREER SITES GAIN RAPIDLY, ALONG WITH JOB HOPPING
Issue: Employment
Online career sites are flourishing on the Internet with more than 500
career sites on the Web. These include Web-only sites like Monster.com and
Hotjobs, as well as sites like Careerpath.com and Classified Ventures which
are supported by newspaper companies looking to expand their lucrative
print classified advertising business. Initially viewed as a new tool for
both job seekers and corporate recruiters alike, these sites are now
changing the dynamics of the employment marketplace, making it possible for
workers to draw significant attention to their resumes. These sites are
believed to be contributing to "job hopping," where workers regularly and
frequently change jobs. This concerns employers who fear the company
loyalty is a thing of the past. The U.S. Bureau of Labor Statistics has
been reporting a steady decline in median tenure among the nation's workers
for years. Among some types of information technology professionals the
generally accepted turnover rate hovers around 50 percent, meaning the
average worker switches jobs every six months. However, the new job-posting
sites do save a lot of money for corporations with many job openings.
[SOURCE: New York Times (C5), AUTHOR: Evan I. Schwartz]
(http://www.nytimes.com/library/tech/99/10/biztech/articles/04jobs.html)

CYBERTAINMENT: SURFING BANNED BOOKS FREELY
Issue: First Amendment
Moral crusaders from around the globe seek to diminish several books in
school libraries in the name of virtue and religion. In answer to the
age-old phenomenon of prior restraint, it is important to note Banned Books
Week, an annual celebration of free expression -- this year's celebration
fell on the week ending October 2nd. Sponsored by the American Library
Association (ALA), Banned Books Week highlights the First Amendment's
guarantee of the
right to read all books, including banned and challenged works. For the past
18 years, the ALA, along with The American Booksellers Foundation for Free
Expression and the Association of American Publishers, have been observing a
week in awareness of the thousands of attempts to ban books. Their Web site
(http://www.ala.org/bbooks/) explains the need for such an observance, along
with highlighting famously and lesser-known banned and challenged books. The
site discusses intellectual freedom, censorship motives and tactics and
notable First Amendment cases. To surf the texts of suppressed literature,
there is Banned Books On-Line
(http://digital.library.upenn.edu/books/banned-books.html). There you can
feast on free expression with the likes of Walt Whitman and James Joyce.
Another educational locale is the Free Speech Museum at
(http://www.spectacle.org/musm.html). In 1997, the U.S. Supreme Court declared
the Internet to be deserving of the highest First Amendment protection --
but in the coming months, the American Civil Liberties Union (ACLU) will be
battling an array of appeals to this law. These sites and many more give
background information on protection of free speech.
[SOURCE: Wall Street Journal, AUTHOR: Erika Milvy]
(http://www.sjmercury.com/svtech/news/breaking/internet/docs/920485l.htm)

DIGITAL TELEVISION

TRANSMISSION STANDARDS FOR DIGITAL TELEVISION
Issue: DTV
The FCC Office of Engineering and Technology (OET) released a report
following its independent assessment of two standards for the provision of
digital television (DTV) services in the United States: the 8-Level
Vestigial Side-Band (8-VSB) system which had been adopted as the U.S.
Standard in a 1996 FCC order, and Coded Orthogonal Frequency Division
Multiplex (COFDM). The OET study was initiated in response to issues raised
by COFDM indoor reception demonstrations by Sinclair Broadcasting Group
(Sinclair). OET recommended that the ATSC 8-VSB standard be retained. The
OET study concluded that both systems have certain advantages and
disadvantages and are both capable of providing viable DTV service. OET
further concluded that, based on discussions with consumer equipment
manufacturers and recent announcements by semiconductor manufacturers
Motorola and NxtWave, reasonable solutions to the multipath issue and indoor
reception problems raised by Sinclair are being developed and should be
available in the near future. OET Contact: Bruce Franca, Alan Stilwell (202)
418-2470.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Engineering_Technology/News_Releases/1999/nret90
04.doc)

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