December 1999

Communications-related Headlines for 12/22/99

TELEPHONY
First Baby Bell to Gain Approval for Long Distance (NYT)
Nextel Communications to Launch $8.3 Billion Hostile Bid
for NextWave (WSJ)
Telecom Trips In Big Rush To Dig (SJM)

ED TECH
Contest Winners See the Internet's Good Side (CyberTimes)

SATELLITE
Comsat May Have to Pay Fees To FCC on Running Satellites (WSJ)

ANTITRUST
In Race to Sue Microsoft, Some Trip (WP)

TELEPHONY

FIRST BABY BELL TO GAIN APPROVAL FOR LONG DISTANCE
Issue: Long Distance
Sources close to the decision indicate that Bell Atlantic, the #2 local
telephone provider in the US, with win approval from the Federal
Communications Commission to offer long distance services to customers in
part of its home region (New York state). Approval would mark first time in
15 years since break up of AT&T that million of consumers would be able to
get both local and long distance services from one of the "Baby Bells." "The
dropping of the barrier keeping the local telephone companies from the
long-distance market is in fact the beginning of the end of regulation,"
Reed E. Hundt, who resigned as chairman of the FCC in 1997, said. "It's
important, the way that crossing the highest peak in any mountain range is
important. You're going down now, but you still have a long way to go." The
FCC is expected to approve Baby Bell entry into long distance in many states
over the next few years -- creating more competition for AT&T, MCI WorldCom
and Sprint.
[SOURCE: New York Times (A1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/financial/122299bellatlantic-fcc.html)
FCC Chairman William E. Kennard will hold a press briefing Wednesday,
December 22 at 11 AM to announce the Commission's decision on the Bell
Atlantic section 271 application. FCC Headquarters, 445 12th St., SW,
Washington, DC, Commission Meeting Room, 12th Street Level

NEXTEL COMMUNICATIONS TO LAUNCH $8.3 BILLION HOSTILE BID FOR NEXTWAVE
Issue: Merger
Nextel Communications plans to launch an $8.3 billion hostile tender offer
for NextWave Telecom, a wireless-communications company operating under
bankruptcy court protection. Nextel's proposed offer for NextWave includes a
$5.3 billion cash payment to the Federal Communications Commission since
NextWave had bid on and won wireless licenses from the FCC, but it has been
unable to pay for them. NextWave equity owners would receive $2.5 billion in
Nextel common stock, and the NextWave creditors would be paid $500 million
in cash. NextWave executives said Nextel's proposal was too little too late
and that "NextWave is poised to emerge out of bankruptcy with full funding,
strategic business partners and a network build-out plan." Last Thursday,
NextWave said it had raised $1.6 billion from several investors, Global
Crossing and AT&T affiliate Liberty Media.
[SOURCE: Wall Street Journal, AUTHOR: Nicole Harris]
(http://interactive.wsj.com/articles/SB945834802163899242.htm)

TELECOM TRIPS IN BIG RUSH TO DIG
Issue: Infrastructure
In California, State officials are tightening the review procedure for
fiber-optic cable digs after finding some that some companies have ignored
rules meant to protect the environment and culturally significant sites.
"It's like the land grab in the western United States," said Bill O'Dwyer,
director of construction in the western states for Level 3. In the wake of
the recent violations, the PUC last week adopted a new review process for
telecom operators. Instead of the blanket approvals of the past, the PUC
will scrutinize each application and require environmental studies, if
necessary. The PUC also has scheduled a roundtable discussion for telecom
industry officials, agencies, agriculture representatives, Indians and
others next month to clarify what is required.
[SOURCE: San Jose Mercury News, AUTHOR: Marilee Enge]
(http://www.mercurycenter.com/svtech/news/indepth/docs/native122299.htm)

ED TECH

CONTEST WINNERS SEE THE INTERNET'S GOOD SIDE
Issue: EdTech
The results of interviews with recent winners of the annual ThinkQuest
student Web site competition -- which this year awarded about $1 million in
scholarship money and cash prizes to schools, teachers and students. The
contest was created four years ago by Allan Weis, a retired IBM executive
and president of Advanced Network & Services Inc., a nonprofit group that
promotes education and technology. Weis was convinced that the Web suffered
from a dearth of good educational material, and thought that Web-savvy young
people could begin to fill the gap. ThinkQuest requires teams of teenagers
to create sites that make the most of Web technology to examine complex
subjects like the life of Gandhi or organ transplants. The contest attracts
students from around the world.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels (mendels( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/12/cyber/education/22education.html)

SATELLITE

COMSAT MAY HAVE TO PAY FEES TO FCC ON RUNNING SATELLITES
Issue: Satellites
Tuesday, an appeals court ruled that Comsat may be required to pay fees,
which the company had been exempt from paying, to the Federal Communications
Commission for the operation of its communications satellites. Panamsat,
Comsat's rival, had argued that the FCC unfairly forces it to pay regulatory
fees, but doesn't require Comsat to do the same, because of its competitor's
status as the U.S. signatory to Intelsat. A three-judge panel on the Court
of Appeals for the District of Columbia ordered the FCC to reconsider
Comsat's exemption from the fees. If the FCC decides to require the fees
from Comsat, the company's payment likely would total less than $1 million,
industry analysts said, based on the company's pro-rata share of the
satellites operated by Intelsat.
[SOURCE: Wall Street Journal, AUTHOR: WALL STREET JOURNAL Staff Reporter]
(http://interactive.wsj.com/articles/SB945827279966535295.htm)

ANTITRUST

IN RACE TO SUE MICROSOFT, SOME TRIP
Issue: Antitrust
In the race to sue Microsoft -- private antitrust suits -- some lawyers are
making memorable legal bloopers. One firm, for example, identified the
company's core business as genetic drug maker [well, maybe that isn't so far
off -- how many people have gotten addicted to computer games included in
Windows?] Forty-two cases have already been filed and many more are
expected. Seeking the triple damages typically awarded plaintiffs in private
antitrust suits, many lawyers are finding Microsoft an irresistible, if
somewhat confusing, target. But few firms have much expertise in high
technology, in part because the industry has only recently attracted the
attention of antitrust enforcers. Most plaintiffs' firms have scored their
largest victories courtesy of more traditional product-liability matters.
[SOURCE: Washington Post (E1), AUTHOR: David Segal]
(http://washingtonpost.com/wp-dyn/business/A21909-1999Dec21.html)

--------------------------------------------------------------
...and we are out of here. Thanks for another great year of Headlines. We'll
be back in 2000.

Communications-related Headlines for 12/21/99

DIGITAL DIVIDE
Taking Up the Fight Against the Digital Divide(NYT)

HEALTH ONLINE
An Online Aid for Surviving Cancer (NYT)
Help for Web Pharmacy Users (NYT)

INTERNET
No More Milking The Internet (WP)
Internet Phone Service Catches On With Millions In China (WSJ)
Lobbying for 'Net Firms Gets Boost From 'Adhocracy' (WSJ)

TELEPHONY
Playing the Field for Phone Service (NYT)

DTV
Australia Outlines Digital TV Rules, Offering More Options to
Viewers (WSJ)

ANTITRUST
Judge Rebuffs Microsoft's Objection To Brief Writer in Antitrust
Trial (WSJ)

DIGITAL DIVIDE

TAKING UP THE FIGHT AGAINST THE DIGITAL DIVIDE
Issue: NTIA
Gregory L. Rohde has inherited - for a year's time - the fight against the
digital divide from the waning Clinton Administration and the man credited
with defining it. Rohde, a 38-year-old former Senate staffer from North
Dakota, was selected by William Daley to run the NTIA after Larry Irving's
September departure. Rohde said he intends to use the information that has
already been compiled to get the public and private sector focused on
solutions to the digital divide - letting the marketplace lead, while
imposing minimal regulation. "But the market will only go so far," he said.
"That's where we need to focus, making sure all segments of society keep
up." In addition to the digital divide, Rohde will be focused on FCC reforms
to the Universal Service program. Although Rohde only has a one-year job
guarantee, the position could be a stepping stone into a Gore
administration. Rohde said he took the job because "it seemed to be a right
fit. This is a terrific place to be, and a job worth doing, even if it is
for just a year."
[SOURCE: New York Times, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/12/cyber/capital/21capital.html)

HEALTH ONLINE

HELP FOR WEB PHARMACY USERS
Issue: Health
The Food and Drug Administration has launch a Web site to help patients
buying drugs and medical products on the Internet. The site, accessible from
the agency's home page (www.fda.gov), is part of a heightened effort to
police the sale of drugs on the Internet. It provides instructions for
consumers on how to report suspicious sites and advises them not to buy
prescription drugs without real prescriptions from known physicians. The
drug agency says that consumers can make sure an online pharmacy is
legitimate by checking the Web site of the National Association of Boards of
Pharmacy (www.nabp.net).
[SOURCE: New York Times, AUTHOR: Associated Press]
http://www.nytimes.com/library/national/science/health/122199hth-fda-web...
l

AN ONLINE AID FOR SURVIVING CANCER
Issue: Health
A newly redesigned Web site aims to help the 8.4 million Americans who have
survived some form of cancer. National Cancer Institute's Office of Cancer
Survivorship (dccps.nci.nih.gov) has recently overhauled the "Survivorship
Research" site that it has maintained for some years. Although much of the
information there is not new, officials say, it has been reorganized for
simplicity. The site is designed to be of use not just to patients but to
researchers and practicing doctors. The old version of the site drew about
five million visits a month.
[SOURCE: New York Times, AUTHOR: Eric Nagourney]
(http://www.nytimes.com/library/national/science/health/122199hth-vital-sign
s.html)

INTERNET

NO MORE MILKING THE INTERNET
Issue: Internet Taxation
[Op-Ed] Whether or not the Internet should be taxed is ultimately the wrong
question since the building blocks of the Internet--phone lines, cable, all
telecommunications--are already one of the most heavily taxed areas of the
economy. Some governors want to add additional taxes on the Internet that
would run counter to Supreme Court decisions that protect interstate
commerce. Present law forbids Utah from forcing Amazon.com to collect Utah's
sales tax when a citizen from Utah buys a book over the Internet.
"Pro-tax-the-Internet Gov. Michael Leavitt (R) of Utah argues that the
states need the extra taxes, that much tax revenue is being lost, and that
these additional taxes can be imposed without hurting the Internet or the
Constitution. He is wrong on all counts." In 1998 the 50 states ended the
year with $11 billion in surpluses, Norquist points out. Additionally, a
June 1999 study by Ernst & Young shows that most e-commerce is
business-to-business or the sale of intangible services or other exempt
products not subject to sales taxes, the actual "loss" to state and local
sales tax collection was one-tenth of 1 percent of sales taxes collected. A
study on how taxing e-commerce would affect Internet sales done by Prof.
Austen Goolsbee of the University of Chicago Business School who found that
changing the Constitution to allow taxation of electronic commerce would
reduce e-commerce by 24 percent or more. "The Constitution's commerce clause
is not a loophole. It created a single American market and stopped states
from attacking "foreign" (out-of-state) businesses."
[SOURCE: Washington Post (A40), AUTHOR: Grover Glenn Norquist, is president
of Americans for Tax Reform and the consumer/taxpayer representative member
of the Advisory Commission on Electronic Commerce.]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-12/21/021l-122199-idx.html
)

INTERNET PHONE SERVICE CATCHES ON WITH MILLIONS IN CHINA
Issue: Internet Telephony
The high cost of making long-distance calls in China is attracting
alternatives in the form of phone calls transmitted through the Internet. In
the process, this cheap and lucrative technology is challenging the longtime
dominance of China Telecom. After a year and a half of operation,
Internet-protocol phone service has already won millions of customers in
China by routing international and domestic long-distance calls over the
Internet at a fraction of the cost of regular fixed-line or cellular
service. Internet phone companies, which charge about one-third the price of
standard long-distance service, present the strongest challenge to state-run
China Telecom and could make China one of the world's biggest markets for
Internet phones in record time. More than a third of China's international
traffic could be carried through the Internet within three years, according
to a report by Boston-based Yankee Group.
[SOURCE: Wall Street Journal (A14), AUTHOR: Leslie Chang]
(http://interactive.wsj.com/articles/SB945708593116745294.htm)

LOBBYING FOR 'NET FIRMS GETS BOOST FROM 'ADHOCRACY'
Issue: Internet/Politics
Washington lobbyists and trade associations --long accustomed to clients
with predictable needs -- have struggled to address the concerns of the
technology industry. About a dozen new groups have sprung up, many on a
temporary basis, to meet the needs of Internet-service providers, marketers
and equipment makers on issues ranging from privacy to taxation. Leading the
way in temporary coalition building is Americans for Computer Privacy, which
lobbies for relaxation on exports of encryption technology, and the Online
Privacy Alliance, which is seeking to head off regulation of Internet-based
marketing. Traditional trade associations don't work in the technology
sector because they are not structured to adapt to the swift changes in the
Internet industry. Some lobbyists believe the coalition model and "virtual
associations," will become the dominant model in Washington advocacy. Others
think the model is a temporary one. "The long-term goal is for the companies
to regulate themselves, and you can't do that with ad-hoc organizations,"
former Representative Rick White, a founder of the Congressional Internet
Caucus who now lobbies for the Seattle law firm Perkins Coie says. A few
associations already aspire to umbrella-group status, including
California-based TechNet (www.technet.org) and the Internet Alliance.
[SOURCE: Wall Street Journal (A24), AUTHOR: Glenn R. Simpson]
(http://interactive.wsj.com/articles/SB945731759116628143.htm)

TELEPHONY

PLAYING THE FIELD FOR PHONE SERVICE
Issue: Telephony
With growing competition in the long-distance market, many consumers have
discovered that it pays to be fickle. Long-distance customers are more
likely than ever to change companies in search of the best deal. A recent
marketing survey by J. D. Power & Associates showed that 31 percent switched
their long-distance service at least once this year compared with 26 percent
in 1997. "Brand loyalty doesn't matter any more; what drives the consumer is
cost," said Kirk Parsons, director of telecommunications accounts at J. D.
Power. "The way the rate is going down, in a couple of years, long distance
is going to be free."
[SOURCE: New York Times (A27), AUTHOR: Winnie Hu]
(http://www.nytimes.com/yr/mo/day/news/national/regional/ny-phone-service.ht
ml)

DTV

AUSTRALIA OUTLINES DIGITAL TV RULES, OFFERING MORE OPTIONS TO VIEWERS
Issue: Digital Television/International
Digital television broadcasts will begin in Australia on Jan. 1, 2001 and
the government there is setting rules for the new service. Free,
over-the-air channels must "triplecast" in order to give viewers the maximum
range of choices: For eight years after DTV begins, broadcasters will have
to continue existing analog broadcasts. Commercial television networks must
offer both standard definition and high definition digital broadcast
signals. In return, the broadcasters each receive seven MHz of spectrum free
of charge. The Australian Consumers' Association said consumers should be
able to get standard definition digital TVs for a minimum outlay of A$2,500.

[SOURCE: Wall Street Journal, AUTHOR: Iain McDonald
(iain.mcdonald( at )dowjones.com)]
(http://interactive.wsj.com/articles/SB945754030687871427.htm)

ANTITRUST

JUDGE REBUFFS MICROSOFT'S OBJECTION TO BRIEF WRITER IN ANTITIRUST TRIAL
Issue: Antitrust
U.S. District Judge Thomas Penfield Jackson rejected Microsoft Corporations
renewed objections to Lawrence Lessig's participation in the company's
antitrust trial, saying he finds no convincing evidence the Harvard
University Internet expert is biased against Microsoft. In an earlier court
filing Microsoft had said that Lessig, whose views on the case had been
solicited by Judge Jackson, "may not be an impartial friend of the court
with regard to legal issues in the case." Microsoft's filing excerpted a
brief radio interview in which Mr. Lessig is quoted as saying Microsoft's
control of the "architecture of cyberspace" is a "threat to innovation."
Microsoft had also complained that Lessig was associated with an advisory
group connected to Red Hat Incorporated, which promotes Linux, computer
operating-system software that competes with Microsoft's dominant Windows
software in some markets. Judge Jackson said the decision to hear the
Harvard Law School professor's views "is within the sound discretion of the
court" and found no evidence of bias either in comments made by Mr. Lessig
or in his financial or professional interests.
[SOURCE: Wall Street Journal, AUTHOR: John R. Wilke]
(http://interactive.wsj.com/articles/SB94572575327530510.htm)

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

Communications-related Headlines for 12/20/99

MEDIA & SOCIETY
Century began with unity, ends with isolation (USA Today)

TELEVISION
Technology Could Soon Hand TV Control to the Viewer (NYT)
Digital Broadcasting Must Serve Public Interest (CME)

INTERNET
Governors' Internet Grab (WSJ)
Local Web Sites Make Good As Ads Grow (WSJ)
AOL Reports 20 Million Members (WSJ)

OLD VS NEW MEDIA
NBC to Support a High-Speed Internet Service Over
Phone Lines (NYT)
FCC's Next Airwaves Auction Pits Old Guard vs
Internet Companies (WSJ)
Microsoft to Link With Simon Malls To Market,
Sell Its Internet Service (WSJ)

POLITICAL DISCOURSE
No Radio or TV? No Way, Bradley Responds to Gore (NYT)

PRIVACY
EPIC Releases New Report on Online Privacy (EPIC)

OUTLOOK 2000
The Economy Transformed, Bit by Bit (NYT)
Wireless Industry Looks Beyond Phone (NYT)
A Time of Energy and Enterprise and Now E-Everything (NYT)
E-Commerce Report: Electronic Retailing to a Truly
Mass Market Is Expected (NYT)
The Internet May Precipitate a Tempest for Traditional
Brands and Advertising (NYT)
The A.T.M. Prophet Is a Late Convert to the Internet (NYT)
Patents Considered Vital to Thrive on the Internet (NYT)
Film's Digital Potential Has Hollywood on Edge (NYT)
Telecommuting to Pick Up as Workers Iron Out Kinks (NYT)
In China, Visions of Internet Riches in a PC-Short Land (NYT)

MEDIA & SOCIETY

CENTURY BEGAN WITH UNITY, ENDS WITH ISOLATION
Issue: Media & Society
[Op-Ed] Film critic Michael Medved begins an historical exploration of the
role of media in the 20th century. "During the course of a lifetime, an
average American will spend more time watching...TV than in any other
waking-hour activity -- giving top priority in his brief span on this planet
to a diversion that didn't exist even 100 years ago." Motion pictures at the
beginning of this era, the advent of radio less than 20 years later and
television at mid-century, all increased the penetration of the
entertainment industry into the home. In the first half of the 1900s, movies
and radio brought people together. The silent film created "history's first
truly universal culture."

Television, at mid-century, had a different influence, transfixing families
in their living rooms. The 1980's marked the fragmentation of the TV
audience. The challenges brought by cable to the broadcast networks resulted
in less broadcasting and increasing "narrow casting" -- reaching for a niche
audience. "In days gone by, workplace colleagues could gather by the water
cooler to discuss a universally viewed episode of 'I Love Lucy.' But today,
fans of 'Felicity' may hardly speak the same language as the audience for
'Touched by an Angel.'" Computers, with the promise of more individualized
home entertainment will continue the isolating process. With the average
individual devoting 28 hours/week to a diversion (television) and the work
week declining only 10 hours in the last century, from where do the
remaining 18 hours come? Relationships, Medved concludes. Family members,
friends and neighbors occupy an increasingly lower priority. Medved sees the
situation only getting worse. "In the new millennium the big question will
be whether we own and control the media of entertainment, or whether we
allow those media to own and control us."
[SOURCE: USA Today, AUTHOR: Michael Medved]
(http://www.usatoday.com/news/comment/ncguest.htm)

TELEVISION

TECHNOLOGY COULD SOON HAND TV CONTROL TO THE VIEWER
Issue: Television
"The world in which the television business exists today won't resemble
anything like that world in 15 or 20 years," said Robert A. Iger, chairman
of the ABC group and president of Walt Disney International. "People will
want entertainment and information customized to their own needs, their own
personal tastes. Right now you have a computer on a desktop and a television
set against a wall. In the future, people will use them interchangeably; it
will be the same piece of equipment. It's a combination that's extremely
powerful." First, there will likely be even more choices than there are
today, as the major networks create offshoots aimed at specific audiences.
Technological breakthroughs are also expected to radically change the
viewing experience. The personal video recorder (PVR) will give
viewers total control over when they view programs. "There will be some kind
of confluence between the computer and the television set," said Michael D.
Eisner, chairman of the Walt Disney Company. "But television is only as good
as what the programs are. Good storytelling hasn't changed in a thousand
years. The advance in technology will not advance a bad story."
[SOURCE: New York Times (C26), AUTHOR: Bernard Weinraub]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-te
le.html)

DIGITAL BROADCASTING MUST SERVE PUBLIC INTEREST
Issue: DTV
The Center for Media Education (CME) announced that it is launching a
campaign to ensure that commercial digital broadcasters serve the interests
of the public, particularly children. CME's new effort is in response to
today's decision by the Federal Communications Commission (FCC) to launch a
Notice of Inquiry (NOI) on public interest policies for broadcasters.
Children's needs must be safeguarded, said Kathryn Montgomery, Ph.D.,
president of CME. "We'll be taking a hard look at digital broadcasting to
make sure that children are protected from manipulative and exploitative
advertising in the digital age. We have a civic responsibility to harness
the power of this new interactive medium for the benefit of children." CME
will file comments with the FCC outlining new ways broadcasters can meet
their digital obligations. The proposed policies will focus on serving the
educational and informational needs of children, including providing schools
with access to a portion of a station's digital spectrum. CME also intends
to present the Commission with new safeguards designed to protect children
from harmful interactive marketing and advertising practices on digital
broadcasting.
[SOURCE: Center For Media Education]
(http://www.cme.org/digitaltv/press_12-15-99.html)

INTERNET

GOVERNORS' INTERNET GRAB
Issue: E-commerce
[Editorial] Governors are warning that if online commerce remains unfettered
by sales taxes, it will devour brick and mortar shop owners throughout the
country. The Governors, led by Republican Mike Leavitt of Utah, are now
backing a multi-state agreement under which Internet businesses would
"volunteer" to collect sales taxes on behalf of all states from all Internet
shoppers. Any such agreement would quickly become a wedge for all sorts of
new taxes for the Internet. "The drive to squeeze every last tax dollar out
of Internet shopping isn't about voters, fairness, simplification, harmony
or financing highways. It is about public power. Right now, the Governors
and their friends at the National Association of Counties and the U.S.
Conference of Mayors have a lot of power, a good share of it derived from
sales tax revenues. Naturally, they want more." The National Federation of
Independent Business has been silent about the "voluntary" plan, the U.S.
Chamber of Commerce isn't for it, and the Small Business Survival Committee
sent a spokesman to testify against the multi-state tax plan. "Indeed, up to
now the main retailer the Governors could claim as an ally was Wal-Mart, not
an enterprise one normally associates with rescuing vulnerable downtown
retailers. Even that support could change: Last Wednesday Wal-Mart announced
it was joining hands with America Online to explore business possibilities
on the Web." Similar charges were made in the early 1980s against mail-order
commerce, but L.L. Bean and similar outfitters have made no visible dents in
state tax revenues. "The point is that the states now fussing over their
need to ensure future revenue flows are ignoring the benefits they and their
constituents are already realizing from this decade's technology- and, yes,
Internet-driven prosperity."
[SOURCE: Wall Street Journal (A26), AUTHOR: Wall Street Journal
Editorial Board]
(http://interactive.wsj.com/articles/SB94546661157936244.htm)
See Also:
NET TAXES: PREDICTING THE WHETHER
[SOURCE: Washington Post (F13), AUTHOR: Peter Behr]
(http://washingtonpost.com/wp-srv/business/feed/a14175-1999dec20.htm)

LOCAL WEB SITES MAKE GOOD AS ADS GROW
Issue: Internet/Advertising
Internet advertisers are targeting the growing number of consumers who
use local and regional Web sites to find out about movies, restaurants
and the weather. According to a report being released Monday by San
Francisco online-research group Jupiter Communications, local and
regional online advertising will account for about 24%, or $2.7 billion,
of the estimated $11.5 billion to be spent on ads on the Internet by
2003. By comparison, Jupiter estimates the regional category for 1999
will amount to about 14%, or $466 million, of the $3.2 billion being
spent online for ads. However, advertisers so far have had mixed results
in figuring out how to target audiences for regional online messages, it
being a far more complicated task in cyberspace than in print or
broadcast. One reason is that targeting Internet users for regional ads
by the location of their computers can be complicated. For instance, all
of America Online's subscribers are listed as being located at the
company's corporate office in Dulles, Va.
[SOURCE: Wall Street Journal (B9), AUTHOR: Kathryn Kranhold]
( http://interactive.wsj.com/articles/SB945645573464112913.htm)

AOL REPORTS 20 MILLION MEMBERS
Issue: Internet
America Online said its core service membership surpassed 20 million.
Over the past two years, the company has added 10 million subscribers to
the AOL service. In a new push to attract users as the current market
reaches its limit,
AOL has formed an alliance with retailer Wal-Mart to attract new customers.
Under the terms of the deal , AOL's CompuServe unit will provide
Wal-Mart-brand Internet access.
[SOURCE: Wall Street Journal]
(http://interactive.wsj.com/articles/SB945439856170100241.htm)

OLD VS NEW MEDIA

NBC TO SUPPORT A HIGH-SPEED INTERNET SERVICE OVER PHONE LINES
Issue: Broadband
NBC, along with several affiliated companies, has plans to invest in a new,
nationwide service that will offer high-speed Internet access over telephone
lines. NBC and its affiliates will be investing $70.5 million for a 19.5
percent stake in Telocity, a company that offers high-speed digital
subscriber line (DSL) Internet access for $50/month. "High-speed broadband
means video. And finally the Internet is moving to a turf we understand as
well as or better than anyone else in the world," Martin J. Yudkovitz,
president of NBC Interactive Media. So far, the market for high-speed access
has grown slowly, in large part because the services were not available to
most customers. "If you look eight years out, we believe that 60 to 70
percent of the households will have broadband access," said Edmond Sanctis,
the president of NBC.
[SOURCE: New York Times (A26), AUTHOR: Saul Hansell]
(http://www.nytimes.com/library/tech/99/12/biztech/articles/20net.html)
See Also:
NBC INTERNET IS SET TO ANNOUNCE PACT WITH BROADBAND-SERVICE FIRM TELOCITY
[SOURCE: Wall Street Journal (B9), AUTHOR: Joe Flint]
(http://interactive.wsj.com/articles/SB945644125954549651.htm)

FCC'S NEXT AIRWAVES AUCTION PITS OLD GUARD VS INTERNET COMPANIES
Issue: Spectrum/Auction
In its auction next spring, the Federal Communications Commission is
planning to sell licenses for a valuable band of electromagnetic spectrum
that may be used for multiple purposes, from wireless Internet access to
traditional two-way radios. This round of auctions is attracting everyone
from old-line manufacturers like Boeing and Ford to new-economy blue chips
like Microsoft and Cisco Systems. The bidding begins in late April or early
May. The spectrum being freed up -- originally allocated to television
broadcasters as UHF channels 60 through 69 -- also has the rare ability to
easily penetrate building walls, making it ideal for wireless Internet
services and other high-speed data applications. The old guard companies,
including oil companies, utilities, airlines and some members of the
agricultural sector, say they badly need some of the spectrum for the
two-way radio systems that they have used for internal communications for
the last five decades.
[SOURCE: Wall Street Journal (B1), AUTHOR: Kathy Chen]
(http://interactive.wsj.com/articles/SB945644704700490017.htm)

MICROSOFT TO LINK SIMON MALLS TO MARKET, SELL ITS INTERNET SERVICE
Issue: Internet
Microsoft is teaming up with the nation's biggest mall owner
and operator to advertise and sell its Internet service in shopping
centers throughout the US. Starting on Jan. 2, Indianapolis-based Simon
Property Group will let Microsoft hawk its MSN Internet service in 120
of its more than 190 large malls. Those malls not included are in areas
where local Internet access is not currently available or the costs to
go online are still prohibitively high. Simon will advertise MSN around
its malls and in its S magazine that is distributed in its shopping
centers. Shoppers who sign up for a six-month prepaid subscription to
MSN will pay $99, and get a $50 gift certificate in return, which can be
used at any store in any Simon mall, including those shopping centers
not participating in the program. Shoppers who prepay $180 for a
year-long subscription will receive a $100 mall gift certificate. The
program will run through February 29. Through the two-month period,
Microsoft will be the exclusive Internet service offered at Simon's
malls.
[SOURCE: Wall Street Journal, AUTHOR: Associated Press]
(http://interactive.wsj.com/articles/SB945659213196257282.htm)

POLITICAL DISCOURSE

NO RADIO OR TV? NO WAY, BRADLEY RESPONDS TO GORE
Issue: Political Discourse
Vice President Al Gore made an offer to rival Bill Bradley yesterday: let's
stop all TV and radio ads during the primary season and, instead, we'll
debate twice a week. Former-Senator Bradley declined. VP Gore's advisors
said he was trying to tap into voter disgust with political advertising,
which some Americans consider the most repellent aspect of campaigns. The
Vice President was also trying to counter Mr. Bradley's claims that he's the
most authentic campaign finance reformer. Mr. Bradley is currently
outspending Mr. Gore on commercials; Mr. Gore is better known.
[SOURCE: New York Times (A1), AUTHOR: Richard Berke]
(http://www.nytimes.com/library/politics/camp/122099wh-dem-debate.html)
See Also
TONIGHT: OUR CANDIDATES VS. THOSE OTHER NETWORKS
Kurtz looks at the exclusive deals networks are getting to carry
presidential debates.
[SOURCE: Washington Post (C1), AUTHOR: Howard Kurtz]
(http://washingtonpost.com/wp-srv/style/feed/a14217-1999dec20.htm)

PRIVACY

EPIC RELEASES NEW REPORT ON ONLINE PRIVACY
Issue: Privacy
"Surfer Beware III: Privacy Policies without Privacy Protection"
(http://www.epic.org/reports/surfer-beware3.html) finds that none of the top
100 shopping web sites adequately protect consumer privacy." EPIC recommends
legislation to enforce "Fair Information Practices" and the development of
Privacy Enhancing Techniques to protect anonymity.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/reports/pr_surfer_beware3.html)

OUTLOOK 2000
[The NYTimes has a special expanded Business section today; here's some
pointers to stories we thought you might be interested in, but, like us, may
not have time to read.]

THE ECONOMY TRANSFORMED, BIT BY BIT
Issue: InfoTech
"Every business now knows that it faces the opportunity and threat of being
transformed by the Internet, and this was the year that happened," said
Daniel Yergin, a business consultant and author. The Internet is
increasingly seen as symbol of evolution in not only business, but also in
politics and culture. It is a global network with open technology standards,
not owned or controlled by a single company or nation. Peter Schwartz, a
leading futurist and business consultant, says that the Internet's growth
and impact will be strongly effected by the policies of nations. The
Internet economy carries the potential for creating "a deep divide between
those who have the skills to prosper and those who don't," he said. "That's
why education policy is so important."
[SOURCE: New York Times (C1), AUTHOR: Steve Lohr]
(http://www.nytimes.com/library/financial/122099outlook-econ.html)

WIRELESS INDUSTRY LOOKS BEYOND PHONE
Issue: Wireless
When top communication executives discuss the future of wireless technology,
it is likely that they will not mention the word "phone" at all. Many
experts predict that the future of wireless lies in a new generation of
mobile wireless devices that function not only as telephones but also as
Internet terminals, or perhaps even radios and televisions that can be
customized for personal tastes. "Now we will be able to focus on getting the
individual his or her own information, no matter how they would like to
receive it," said Phillip T. Redman, an analyst for the Yankee Group. "The
information will be localized, will be personalized and will be timely,"
said Haroon I. Alvi, director for business development of Nokia's wireless
handset operation.
[SOURCE: New York Times (C37), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-wi
r
e.html)

A TIME OF ENERGY AND ENTERPRISE AND NOW E-EVERYTHING
Issue: InfoTech
Top executives laud technology but harbor fears of its darker side. Read
thoughts of Fannie Mae CEO Franklin Raines, Disney's Michael Eisner, Martha
Stewart, cartoonist Stan Lee, Robert Rubin, former US Treasury secretary,
David Komansky, CEO of Merrill Lynch, Honeywell chairman Lawrence Bossidy
and AOL's Steve Case.
[SOURCE: New York Times (C2), AUTHOR: Reed Abelson]
(http://www.nytimes.com/library/financial/122099outlook-epit.html)

E-COMMERCE REPORT: ELECTRONIC RETAILING TO A TRULY MASS MARKET IS EXPECTED
Issue: E-Commerce
[SOURCE: New York Times (C40), AUTHOR: Bob Tedeschi (tedeschi( at )nytimes.com)]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-te
dd.html)

THE INTERNET MAY PRECIPITATE A TEMPEST FOR TRADITIONAL BRANDS AND
ADVERTISING
Issue: Advertising
[SOURCE: New York Times (C43), AUTHOR: Stuart Elliott]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-ad
co.html)

THE A.T.M. PROPHET IS A LATE CONVERT TO THE INTERNET
Issue: E-Commerce
[SOURCE: New York Times (C18), AUTHOR: Timothy O'Brien]
(http://www.nytimes.com/library/financial/122099outlook-reed.html)

PATENTS CONSIDERED VITAL TO THRIVE ON THE INTERNET
Issue: Intellectual Property
[SOURCE: New York Times (C39), AUTHOR: Teresa Riordan]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-pa
te.html)

FILM'S DIGITAL POTENTIAL HAS HOLLYWOOD ON EDGE
Issue: Convergence
[SOURCE: New York Times (C41), AUTHOR: Rick Lyman]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/122099outlook-fi
lm.html)

TELECOMMUTING TO PICK UP AS WORKERS IRON OUT KINKS
Issue: Telecommuting
[SOURCE: New York Times (C6), AUTHOR: David Leonhardt]
(http://www.nytimes.com/library/financial/122099outlook-work.html)

IN CHINA, VISIONS OF INTERNET RICHES IN A PC-SHORT LAND
Issue: International
[SOURCE: New York Times (C22), AUTHOR: Mark Landler]
(http://www.nytimes.com/library/financial/122099outlook-china.html)
--------------------------------------------------------------

Communications-related Headlines for 12/17/99

As is tradition here, the Headlines staff will be taking a few days off to
serve as elves at Macy's (where our motto is: If you can't find it here,
check Amazon.com -- we own stock there now). There will be no CRH service
Thursday 12/23 -- Friday 12/31. We will be back Monday January 3, 2000 (Y2K
permitting).

INTERNET
White House Orders E-Vote Study (USA)
Interactive TV To Limit Web Access (SJM)

MEDIA LITERACY
Should Programs That Teach Kids To View Ads Critically Take Ads?
(WSJ)

TELEPHONY
An Ancient Roadblock (SJM)

INTERNET

WHITE HOUSE ORDERS E-VOTE STUDY
Issue: Internet
The White House is ordering the National Science Foundation to conduct a
one-year study on online voting. The White House will use a team of legal
scholars, technical specialists and experts on the democratic process to
consider whether cybervoting might increase turnout without creating fraud
or privacy problems. President Clinton is also signing two executive
memorandums today on developing Web resources. In one, the White House will
order the creation of a single Internet "portal" to be used to reach any
government Web site. In the second memorandum, Clinton will order Cabinet
secretaries and agency heads to pursue about a dozen specific initiatives,
in conjunction with the private sector to foster an "e-society." The
initiatives will include: expanding access to health care by encouraging
"telemedicine," and networks for doctors and patients that may be especially
important in rural areas; improving the ability of the Federal Emergency
Management Agency to respond to natural and man-made disasters through the
use of remote supercomputers; expanding access to "national treasures" at
the Smithsonian and elsewhere.
[SOURCE: USA Today (1A), AUTHOR: Susan Page]
(http://www.usatoday.com/usatonline/19991217/1764791s.htm)
See Also
WHITE HOUSE ORDERS STUDY OF ONLINE VOTING - REPORT
[SOURCE: San Jose Mercury, AUTHOR: Reuters]
(http://www.sjmercury.com/svtech/news/breaking/internet/docs/942l.htm)

INTERACTIVE TV TO LIMIT WEB ACCESS
Issue: Interactive TV/Internet
AT&T and Microsoft are developing an interactive TV service that will allow
customers to shop electronically, read headlines and sports scores, check
the weather and send e-mail. One thing that consumers won't be able to do,
however, is have unrestricted access to the Internet. According to current
plans, full access to the Web will cost subscribers an additional fee. The
basic interactive service will be available at no extra charge to AT&T's
"digital cable" offering, which sells for $10 per month. The company plans
to collect a premium from business who want to sell products and services
electronically to cable viewers.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/inter121799.htm)

MEDIA LITERACY

SHOULD PROGRAMS THAT TEACH KIDS TO VIEW ADS CRITICALLY TAKE ADS?
Issue: Advertising/Media Literacy
The Locke Middle School in Billerica, Massachusetts mandated a "media
literacy" component in its sixth-grade English classes, in part to help
students figure out when advertising and other mass-media messages are not
telling the truth. Now Locke and the 12,000 other schools that air the
Channel One broadcast are about to receive a free media-literacy curriculum
that deals with such thorny issues. But the benefactor is Channel One, which
is one of several companies trying to promote their own version of media
truths. Critics liken companies such as Channel One teaching media literacy
to beer companies promoting safe drinking. Educational guidelines in 48
states call for some form of media education including understanding how TV
news is edited and produced, reading labels on food packages and studying
whether Internet information sources are reliable. Most of the programs are
informal, and now media companies are developing materials themselves, which
could be a problem as children receive conflicting message from educators
and the commercial world.
[SOURCE: Wall Street Journal, AUTHOR: Daniel Golden]
(http://interactive.wsj.com/articles/SB945386201377345198.htm)

TELEPHONY

AN ANCIENT ROADBLOCK
Issue: Telephony
Qwest was ordered to stop work laying broadband fiber-optic cable throughout
California after the state Public Utilities Commission charged the company
with ignoring laws designed to protect Indian burial sites. The PUC ordered
Qwest to suspend work after it was discovered digging near a prominent
burial ground in San Jose. "They should have known it was there," said Larry
Myers, executive secretary of the state's Native American Heritage
Commission. "It was a recorded site." The PUC and Indian groups are becoming
increasingly concerned that the telecom diggers are flouting California
environmental laws aimed at safeguarding sensitive archaeological areas. We
can't stop progress," said Howard Soto, an Native American activist. "But we
can ensure that our heritage is preserved"
[SOURCE: San Jose Mercury News, AUTHOR: Ken Mclaughlin]
(http://www.mercurycenter.com/svtech/news/indepth/docs/qwest121799.htm)

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

Communications-related Headlines for 12/16/99

POLITICS
Most States Now Offering Campaign Data Online (CyberTimes)

DTV
FCC Seeks Comment On Public Interest Obligations Of Digital
Broadcasters (MAP)

E-COMMERCE
Retailers and Governors Attack Proposal to Make the Internet a
Tax-Free Zone (NYT)
Michigan Plans Lawsuits Against Online Pharmacies (WSJ)
E-Commerce Spreads Shaky Roots Into Far Reaches of Latin America
(WSJ)

PHILANTHROPY ONLINE
Taking the Gift of Giving Online (WP)

MERGERS
MCI, Sprint Asked for Details on Internet Holdings (WSJ)
DDI to Acquire KDD, IDO to Create Japan's Second-Largest Telecom
Firm (WSJ)

ANTITRUST
Justice Probing MTV's Power (WP)
Comcast Denies Antitrust Claim Filed by GTE on Internet Services
(WSJ)

POLITICS

MOST STATES NOW OFFERING CAMPAIGN DATA ONLINE
Issue: Politics
Just a Few years ago, it took a citizen true dedication to be able to view
records of contributions to state political campaigns. According to two
recent studies, however, it has become easier than ever for state residents
to see campaign finance disclosures on the Internet. The Digital Sunlight
Awards program, a study conducted by the nonprofit California Voter
Foundation and financed by the Joyce Foundation in Chicago, has gathered
information Web disclosure requirements in all 50 states. "Hopefully people
can use our findings to help move their states forward," said Kim Alexander,
president of the California Voter Foundation. "This is a very promising area
in political reform."
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/12/cyber/articles/16campaign.html)

DTV

FCC SEEKS COMMENT ON PUBLIC INTEREST OBLIGATIONS OF DIGITAL BROADCASTERS
Issue: Digital Broadcasting
Media Access Project ("MAP") applauded the Federal Communications Commission
("FCC") for releasing a Notice of Inquiry ("NOI") today on the duties
digital broadcasters owe their local communities and the American people.
"This is a good beginning in requiring broadcasters to give the public the
service it deserves under the law," said Andrew Jay Schwartzman, President
and CEO of MAP. The NOI follow up on recommendations from a committee
commissioned by Vice President Gore, which examined the public interest
obligations of broadcasters in the Digital Age. "I am particularly pleased
at the consideration given to improved public disclosures by broadcasters,
as proposed by the Gore Commission," said Schwartzman, who also promised
that MAP would press the FCC to require broadcasters to give free time to
all candidates for public office.
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/)

E-COMMERCE

RETAILERS AND GOVERNORS ATTACK PROPOSAL TO MAKE THE INTERNET A TAX-FREE ZONE
Issue: E-Commerce
Proposals to make the Internet a tax-free zone by commission created by
Congress have come under attack today by major retailers, shopping-center
owners and state and local officials. A coalition called E-Fairness,
comprised Wal-Mart Stores, Federated Department Stores, the International
Council of Shopping Centers and other members, told the Advisory Commission
on Electronic Commerce that such a proposal could have "potentially
devastating economic, tax and social consequences." Gov. William J. Janklow
of South Dakota, speaking on behalf of state and local governments said,
"America can't survive if we have discriminatory taxes." On the other side
was Gov. James S. Gilmore III of Virginia, the commission's chairman, who
advocates a blanket tax exemption for Internet commerce. Gilmore has said
that the Internet's growth "must not be thwarted by taxation."
[SOURCE: New York Times (), AUTHOR: David Cay Johnston]
(http://www.nytimes.com/library/tech/99/12/biztech/articles/16tax.html)

MICHIGAN PLANS LAWSUITS AGAINST ONLINE PHARMACIES
Issue: Health/Law
After a mandatory 10-day wait for response from companies, Michigan Attorney
General Jennifer Granholm plans to file lawsuits alleging that ten online
pharmacies sold prescription drugs to state residents, but the companies
didn't have valid Michigan licenses and didn't verify that the patients had
undergone examinations by doctors. Granholm's office has sent notices to the
companies of the state's intent to sue and the companies' face a penalty of
$25,000 for each violation under Michigan law. In her investigation,
undercover investigators were able to shop online and receive by mail
popular drugs, including the Viagra and Phentermine. Granholm said the sites
also had no safeguards to screen out minors or people with medical
conditions that conflicted with the drugs. "You might as well put
prescription drugs on store shelves with the candy," she said. The ten
companies include ConfiMed.com of Seattle; Doctors ASAP of Utah; Gynemed Net
of West Virginia; Ken's Pharmacy of Florida; KwikMed of Arizona; Millennium
Medical Group of Florida; RxLeader of Virginia; Safeweb Medical of Florida;
and Viareal of Las Vegas.
[SOURCE: Wall Street Journal, AUTHOR: Sholnn Freeman]
(http://interactive.wsj.com/articles/SB94530355134300302.htm)

E-COMMERCE SPREADS SHAKY ROOTS INTO FAR REACHES OF LATIN AMERICA
Issue: Internet/E-commerce
Latin Americans will buy $90 million of goods from U.S. online retailers
this year and $77 million of items Web sites based in the region, according
to a study by The Boston Consulting Group. BCG predicts e-commerce in Latin
America will grow to $3.8 billion by 2003. According to estimates by eStats,
an Internet research firm, there are about 4.1 million active Internet users
in Latin America in 1999, about 1% of the population. That number will
double to 8.7 million in 2000 according to predictions. However there are
real problems for online businesses expanding into Latin America due to low
computer penetration, high access costs, logistical support problems,
cultural and security hurdles, and postal delivery problems. While packages
sometimes arrive without a hitch, other times they're hit with duties that
can more than double the price of goods or they are reviewed for content and
sent back. Consumer experiences also vary by country. Many Latin Americans
are getting their first taste of e-commerce by using successful U.S. sites,
although much of the growth in near future is expected to be in local
retailers, banks, brokerages and other online services. Grocery sales will
account for the largest chunk of online purchases in Latin America this
year.
[SOURCE: Wall Street Journal, AUTHOR: Michelle Wallin - Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB945303685272510746.htm)

PHILANTHROPY ONLINE

TAKING THE GIFT OF GIVING ONLINE
Issue: Internet/ Philanthropy
More and more charities are soliciting and receiving donations online. For
instance, the American Red Cross, which in fiscal 1998 received fewer than
600 online donations totaling $172,000, has seen a flow in fiscal 1999 of
22,000 donations totaling $2.5 million. Besides individual charities, some
sites such as Helping.org (www.helping.org) link online donors to a variety
of nonprofits. The Internet is expected to appeal particularly to younger
donors and get the attention of people who might otherwise not give.
Retailers and marketing groups are joining with charities online hoping that
Christmas shopping and holiday giving will stimulate each other. Some
retailers enable customers to buy products online to donate to a specific
charity that is being hosted by the site. Of the 70 percent of American
households that gave to charity this year, only about 1 percent used the
Web, according to Independent Sector, a Washington-based coalition of
volunteer organizations. However, the numbers are expected to increase since
this year is the first year online giving has been significant.
[SOURCE: Washington Post (C04), AUTHOR: Sandra Evans]
(http://washingtonpost.com/wp-srv/WPlate/1999-12/16/263l-121699-idx.html)

MERGERS

MCI, SPRINT ASKED FOR DETAILS ON INTERNET HOLDINGS
Issue: Merger
Yesterday, Federal Communications Commission General Counsel Christopher
Wright asked MCI WorldCom and Sprint to provide information on what they
would do with their Internet backbone holdings in their planned merger. The
letter does not say the FCC is swaying either way in the matter but asks for
additional data on what Internet services they provide and the merger's
potential impact on the market. An MCI spokesman said, "We've said all along
we're prepared to address the Internet issue. We're happy to supply the FCC
with any additional facts that it desires." The FCC will look at the planned
merger after the Justice Department completes its review.
[SOURCE: Wall Street Journal, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB945303380853420155.htm)

DDI TO ACQUIRE KDD, IDO TO CREATE JAPAN'S SECOND-LARGEST TELECOM FIRM
Issue: Merger
Today, Japan's second-largest mobile phone group, DDI, said that it has
agreed to buy rivals KDD, Japan's largest long-distance phone company, and
IDO, a smaller mobile phone operator, creating Japan's second-largest
telecommunications company. The new company will be second in size only to
Nippon Telegraph and Telephone, the world's largest phone company. They will
combine their operations by October of next year. Total assets of the new
company will amount to 2.194 trillion yen ($21.3 billion). Analysts said
this creates something big enough to take on NTT and Japan Telecom. The
largest shareholders in the new company will be Kyocera, a maker of
cellular-phone handsets and Toyota, the nation's largest auto maker.
[SOURCE: Wall Street Journal, AUTHOR: An Interactive Journal News Roundup]
(http://interactive.wsj.com/articles/SB945320126707947604.htm)

ANTITRUST

JUSTICE PROBING MTV'S POWER
Issue: Television/Antitrust
The Justice Department is investigating music television network MTV for
possible antitrust violations, looking into complaints from record companies
that MTV's control over the airing of music videos harms record companies
and limits would-be competitors. Investigators also are looking at the
purchase of two music-video channels by MTV's parent, Viacom Inc. The
investigation centers on Viacom's purchase in July of the Box, a small cable
TV channel that plays music videos. By acquiring the Box, Viacom added
another music network to a lineup that includes MTV, VH-1 and M2, a channel
distributed primarily overseas. Viacom has a $35 billion deal pending to
purchase CBS Incorporated, which would add to its stable of music
television, giving it ownership of CBS's Country Music Television cable
channel and its Infinity Broadcasting chain of radio stations. The Infinity
is the nation's second-largest radio chain.
[SOURCE: Washington Post (E01), AUTHOR: Paul Farhi]
(http://washingtonpost.com/wp-srv/WPlate/1999-12/16/189l-121699-idx.html)

COMCAST DENIES ANTITRUST CLAIM FILED BY GTE ON INTERNET SERVICES
Issue: Broadband
Comcast, responded to a suit filed in October by GTE in the western district
of Pennsylvania, denying antitrust charges made against it and other
companies over offering Internet services. GTE's suit claims that Comcast
and AT&T were illegally forcing their cable-modem subscribers to buy Excite
At Home's Internet-service provider. "For years, GTE and other telephone
companies owned the only on-ramp to the information superhighway, and
collected easy profits rather than developing and rolling out advanced
high-speed services to consumers," said David Juliano, senior vice president
and general manager of Comcast Online, responding to the lawsuit. Now, the
phone companies "are attempting to block the cable industry's investment" in
high-speed Internet services by saddling "cable competitors with crippling
regulations."
[SOURCE: Wall Street Journal, AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB94530153458374716.htm)

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

Communications-related Headlines for 12/16/99

POLITICS
Most States Now Offering Campaign Data Online (CyberTimes)

DTV
FCC Seeks Comment On Public Interest Obligations Of Digital
Broadcasters (MAP)

E-COMMERCE
Retailers and Governors Attack Proposal to Make the Internet a
Tax-Free Zone (NYT)
Michigan Plans Lawsuits Against Online Pharmacies (WSJ)
E-Commerce Spreads Shaky Roots Into Far Reaches of Latin America
(WSJ)

PHILANTHROPY ONLINE
Taking the Gift of Giving Online (WP)

MERGERS
MCI, Sprint Asked for Details on Internet Holdings (WSJ)
DDI to Acquire KDD, IDO to Create Japan's Second-Largest Telecom
Firm (WSJ)

ANTITRUST
Justice Probing MTV's Power (WP)
Comcast Denies Antitrust Claim Filed by GTE on Internet Services
(WSJ)

POLITICS

MOST STATES NOW OFFERING CAMPAIGN DATA ONLINE
Issue: Politics
Just a Few years ago, it took a citizen true dedication to be able to view
records of contributions to state political campaigns. According to two
recent studies, however, it has become easier than ever for state residents
to see campaign finance disclosures on the Internet. The Digital Sunlight
Awards program, a study conducted by the nonprofit California Voter
Foundation and financed by the Joyce Foundation in Chicago, has gathered
information Web disclosure requirements in all 50 states. "Hopefully people
can use our findings to help move their states forward," said Kim Alexander,
president of the California Voter Foundation. "This is a very promising area
in political reform."
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/12/cyber/articles/16campaign.html)

DTV

FCC SEEKS COMMENT ON PUBLIC INTEREST OBLIGATIONS OF DIGITAL BROADCASTERS
Issue: Digital Broadcasting
Media Access Project ("MAP") applauded the Federal Communications Commission
("FCC") for releasing a Notice of Inquiry ("NOI") today on the duties
digital broadcasters owe their local communities and the American people.
"This is a good beginning in requiring broadcasters to give the public the
service it deserves under the law," said Andrew Jay Schwartzman, President
and CEO of MAP. The NOI follow up on recommendations from a committee
commissioned by Vice President Gore, which examined the public interest
obligations of broadcasters in the Digital Age. "I am particularly pleased
at the consideration given to improved public disclosures by broadcasters,
as proposed by the Gore Commission," said Schwartzman, who also promised
that MAP would press the FCC to require broadcasters to give free time to
all candidates for public office.
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/)

E-COMMERCE

RETAILERS AND GOVERNORS ATTACK PROPOSAL TO MAKE THE INTERNET A TAX-FREE ZONE
Issue: E-Commerce
Proposals to make the Internet a tax-free zone by commission created by
Congress have come under attack today by major retailers, shopping-center
owners and state and local officials. A coalition called E-Fairness,
comprised Wal-Mart Stores, Federated Department Stores, the International
Council of Shopping Centers and other members, told the Advisory Commission
on Electronic Commerce that such a proposal could have "potentially
devastating economic, tax and social consequences." Gov. William J. Janklow
of South Dakota, speaking on behalf of state and local governments said,
"America can't survive if we have discriminatory taxes." On the other side
was Gov. James S. Gilmore III of Virginia, the commission's chairman, who
advocates a blanket tax exemption for Internet commerce. Gilmore has said
that the Internet's growth "must not be thwarted by taxation."
[SOURCE: New York Times (), AUTHOR: David Cay Johnston]
(http://www.nytimes.com/library/tech/99/12/biztech/articles/16tax.html)

MICHIGAN PLANS LAWSUITS AGAINST ONLINE PHARMACIES
Issue: Health/Law
After a mandatory 10-day wait for response from companies, Michigan Attorney
General Jennifer Granholm plans to file lawsuits alleging that ten online
pharmacies sold prescription drugs to state residents, but the companies
didn't have valid Michigan licenses and didn't verify that the patients had
undergone examinations by doctors. Granholm's office has sent notices to the
companies of the state's intent to sue and the companies' face a penalty of
$25,000 for each violation under Michigan law. In her investigation,
undercover investigators were able to shop online and receive by mail
popular drugs, including the Viagra and Phentermine. Granholm said the sites
also had no safeguards to screen out minors or people with medical
conditions that conflicted with the drugs. "You might as well put
prescription drugs on store shelves with the candy," she said. The ten
companies include ConfiMed.com of Seattle; Doctors ASAP of Utah; Gynemed Net
of West Virginia; Ken's Pharmacy of Florida; KwikMed of Arizona; Millennium
Medical Group of Florida; RxLeader of Virginia; Safeweb Medical of Florida;
and Viareal of Las Vegas.
[SOURCE: Wall Street Journal, AUTHOR: Sholnn Freeman]
(http://interactive.wsj.com/articles/SB94530355134300302.htm)

E-COMMERCE SPREADS SHAKY ROOTS INTO FAR REACHES OF LATIN AMERICA
Issue: Internet/E-commerce
Latin Americans will buy $90 million of goods from U.S. online retailers
this year and $77 million of items Web sites based in the region, according
to a study by The Boston Consulting Group. BCG predicts e-commerce in Latin
America will grow to $3.8 billion by 2003. According to estimates by eStats,
an Internet research firm, there are about 4.1 million active Internet users
in Latin America in 1999, about 1% of the population. That number will
double to 8.7 million in 2000 according to predictions. However there are
real problems for online businesses expanding into Latin America due to low
computer penetration, high access costs, logistical support problems,
cultural and security hurdles, and postal delivery problems. While packages
sometimes arrive without a hitch, other times they're hit with duties that
can more than double the price of goods or they are reviewed for content and
sent back. Consumer experiences also vary by country. Many Latin Americans
are getting their first taste of e-commerce by using successful U.S. sites,
although much of the growth in near future is expected to be in local
retailers, banks, brokerages and other online services. Grocery sales will
account for the largest chunk of online purchases in Latin America this
year.
[SOURCE: Wall Street Journal, AUTHOR: Michelle Wallin - Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB945303685272510746.htm)

PHILANTHROPY ONLINE

TAKING THE GIFT OF GIVING ONLINE
Issue: Internet/ Philanthropy
More and more charities are soliciting and receiving donations online. For
instance, the American Red Cross, which in fiscal 1998 received fewer than
600 online donations totaling $172,000, has seen a flow in fiscal 1999 of
22,000 donations totaling $2.5 million. Besides individual charities, some
sites such as Helping.org (www.helping.org) link online donors to a variety
of nonprofits. The Internet is expected to appeal particularly to younger
donors and get the attention of people who might otherwise not give.
Retailers and marketing groups are joining with charities online hoping that
Christmas shopping and holiday giving will stimulate each other. Some
retailers enable customers to buy products online to donate to a specific
charity that is being hosted by the site. Of the 70 percent of American
households that gave to charity this year, only about 1 percent used the
Web, according to Independent Sector, a Washington-based coalition of
volunteer organizations. However, the numbers are expected to increase since
this year is the first year online giving has been significant.
[SOURCE: Washington Post (C04), AUTHOR: Sandra Evans]
(http://washingtonpost.com/wp-srv/WPlate/1999-12/16/263l-121699-idx.html)

MERGERS

MCI, SPRINT ASKED FOR DETAILS ON INTERNET HOLDINGS
Issue: Merger
Yesterday, Federal Communications Commission General Counsel Christopher
Wright asked MCI WorldCom and Sprint to provide information on what they
would do with their Internet backbone holdings in their planned merger. The
letter does not say the FCC is swaying either way in the matter but asks for
additional data on what Internet services they provide and the merger's
potential impact on the market. An MCI spokesman said, "We've said all along
we're prepared to address the Internet issue. We're happy to supply the FCC
with any additional facts that it desires." The FCC will look at the planned
merger after the Justice Department completes its review.
[SOURCE: Wall Street Journal, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB945303380853420155.htm)

DDI TO ACQUIRE KDD, IDO TO CREATE JAPAN'S SECOND-LARGEST TELECOM FIRM
Issue: Merger
Today, Japan's second-largest mobile phone group, DDI, said that it has
agreed to buy rivals KDD, Japan's largest long-distance phone company, and
IDO, a smaller mobile phone operator, creating Japan's second-largest
telecommunications company. The new company will be second in size only to
Nippon Telegraph and Telephone, the world's largest phone company. They will
combine their operations by October of next year. Total assets of the new
company will amount to 2.194 trillion yen ($21.3 billion). Analysts said
this creates something big enough to take on NTT and Japan Telecom. The
largest shareholders in the new company will be Kyocera, a maker of
cellular-phone handsets and Toyota, the nation's largest auto maker.
[SOURCE: Wall Street Journal, AUTHOR: An Interactive Journal News Roundup]
(http://interactive.wsj.com/articles/SB945320126707947604.htm)

ANTITRUST

JUSTICE PROBING MTV'S POWER
Issue: Television/Antitrust
The Justice Department is investigating music television network MTV for
possible antitrust violations, looking into complaints from record companies
that MTV's control over the airing of music videos harms record companies
and limits would-be competitors. Investigators also are looking at the
purchase of two music-video channels by MTV's parent, Viacom Inc. The
investigation centers on Viacom's purchase in July of the Box, a small cable
TV channel that plays music videos. By acquiring the Box, Viacom added
another music network to a lineup that includes MTV, VH-1 and M2, a channel
distributed primarily overseas. Viacom has a $35 billion deal pending to
purchase CBS Incorporated, which would add to its stable of music
television, giving it ownership of CBS's Country Music Television cable
channel and its Infinity Broadcasting chain of radio stations. The Infinity
is the nation's second-largest radio chain.
[SOURCE: Washington Post (E01), AUTHOR: Paul Farhi]
(http://washingtonpost.com/wp-srv/WPlate/1999-12/16/189l-121699-idx.html)

COMCAST DENIES ANTITRUST CLAIM FILED BY GTE ON INTERNET SERVICES
Issue: Broadband
Comcast, responded to a suit filed in October by GTE in the western district
of Pennsylvania, denying antitrust charges made against it and other
companies over offering Internet services. GTE's suit claims that Comcast
and AT&T were illegally forcing their cable-modem subscribers to buy Excite
At Home's Internet-service provider. "For years, GTE and other telephone
companies owned the only on-ramp to the information superhighway, and
collected easy profits rather than developing and rolling out advanced
high-speed services to consumers," said David Juliano, senior vice president
and general manager of Comcast Online, responding to the lawsuit. Now, the
phone companies "are attempting to block the cable industry's investment" in
high-speed Internet services by saddling "cable competitors with crippling
regulations."
[SOURCE: Wall Street Journal, AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB94530153458374716.htm)

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

Communications-related Headlines for 12/15/99

ED TECH
Push for Computers in Classrooms Gathers New Foes (NYT)
How Small-Town Standards Can Block A Big City Class (NYT)

POLITICS ONLINE
A Giant Leap For Political Campaigning (USA)
California Commission Sees Big Obstacles to Internet Voting (NYT)
America Online Seeks Access To Party Conventions (NYT)

ECOMMERCE
Net, retail giants dealing for dollars (USA)

BROADBAND
The 12 Days of Broadband (FCC)

ED TECH

PUSH FOR COMPUTERS IN CLASSROOMS GATHERS NEW FOES
Issue: Ed-Tech
Conventional wisdom in education policy circles has held that children
need to be introduced to computers early in life and that technology
should be present in their educational experiences. However, a new group
of educators, doctors, psychologists and others is challenging this
idea. The group has formed a committee, called the Alliance for
Childhood, and written a draft statement on technology literacy saying
the American approach to technology in homes and schools has been
flawed. The existing approach emphasizes ephemeral vocational skills and
graphically appealing educational software, rather than helping children
think critically about technology and its appropriate use.
The committee is urging that computers have a restricted role, if any
role at all, in elementary school classrooms and in later years be
introduced to technology via a process that assures children understand
how computers work, to examine the role of technology in their lives and
have an understanding of ethical online behavior.
[SOURCE: New York times, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/12/cyber/education/15education.html)

HOW SMALL-TOWN STANDARDS CAN BLOCK A BIG CITY CLASS
Issue: Ed-Tech
Some school systems across the country are dealing with Internet content by
buying commercial filtering programs and using predetermined settings that
decide what children can and cannot see. Those settings are based on
objections submitted to the software companies by officials and educators
across the country, and so they tend to reflect the standards of the more
cautious communities. New York Board of Education officials adopted I-Gear
filtering software because of its flexibility (it can distinguish "breast"
from "chicken breast," for example). The flexibility was cited as a selling
point by the manufacturer, Symantec. However, unless local school officials
customize the filter, it relies on 23 predetermined, or default, settings
that filter out specific prohibited sites set by the company, ranging from
"news" to "intolerance." In New York, teachers complained that at first the
I-Gear filter banned the last chapter of John Steinbeck's "Grapes of Wrath,"
The New York Times, The Daily News, CNN and abortion-rights sites but not
anti-abortion sites. Symantec officials say the default filter categories do
not reflect the company's judgments about issues like abortion, but is based
on its customers' recommendations, which it admits can lead to
idiosyncrasies.
[SOURCE: New York Times, AUTHOR: Anemona Hartocollis]
(http://www.nytimes.com/library/national/regional/121599ny-schoolfilter-
edu.html)

POLITICS ONLINE

A GIANT LEAP FOR POLITICAL CAMPAIGNING
Issue: Political Discourse
[Op-Ed] Political candidates increasing have to pay huge sums in advertising
dollars
to get their message across to voters. As television news coverage of
candidates continues to shrink, political hopefuls without large war chests
often can't afford to be heard. For this reason, the President's Advisory
Committee on the Public Interest Obligations of Digital Television
Broadcasters -- of which Ornstein was a co-chair -- recommended that all
broadcasters provide five minutes of prime-time airtime to
candidate-centered discourse in the 30 nights before each election. In the
year since the recommendations were presented to Vice President Al Gore, not
one significant broadcast entity has shown willingness to take this small
step towards enhancing our democracy.
[SOURCE: USAToday(31A), AUTHOR: Norman Ornstein, American Enterprise
Institute senior resident scholar]
(http://www.usatoday.com/news/comment/ncguest.htm)

CALIFORNIA COMMISSION SEES BIG OBSTACLES TO INTERNET VOTING
Issue: Internet/Politics
A state commission in California, which is conducting the first
state-level study of online voting, will recommend waiting several years
before allowing voters to vote via their computers. Secretary of State
Bill Jones said the commission will recommend applying Internet
technology to the election process in phases. Early phases would involve
allowing voters to cast ballots on Internet-connected computers at
polling places. Eventually, after technical problems surrounding voter
identification are resolved, the public would be allowed to vote from
county kiosks or any computer with an Internet connection.
The issue of systems that can identify people who want to cast ballots
online is seen as a major hurdle to online voting. Another of the
commission's concerns was the fear that viruses that disable voters'
computers could be released on Election Day.
[SOURCE: New York Times, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/12/cyber/articles/15vote.html

AMERICA ONLINE SEEKS ACCESS TO PARTY CONVENTIONS
Issue: Political Discourse
America Online has announced plans to join the big four television networks
providing coverage of the upcoming Democratic and Republican conventions.
The online service provider will offer online video, audio interviews and
live chats of the parties' top brass. The convention planners are eager for
more ways to get their messages out. "We don't have reporters that will go
down and gather quotes and report back, but we'll be doing live talk shows
where the people at home can interact with newsmakers," says Kathleen
deLaski, America Online's political programming director. "It's different
than the kind of newsgathering we're used to." One challenge for AOL will be
obtaining the necessary press credentials.
[SOURCE: USAToday(16A), AUTHOR: Martha T. Moore]
http://www.usatoday.com/usatonline/19991215/1754559s.htm

ECOMMERCE

NET, RETAIL GIANTS DEALING FOR DOLLARS
Issue: E-Commerce
As the number of Americans going online begins to level off, some companies
have devised untraditional partnerships to attract newcomers to the Web.
Today, Yahoo will announce a partnership with Kmart, and AOL has plans to
soon announce a deal with Wal-mart. Yahoo and Kmart will offer free Internet
access to people who use Kmart's soon-to-be-launched Bluelight.com
e-commerce site. Wal-Mart already has began testing kiosks, that allow
consumers to purchase products not available in the store, in 50 stores
across the country. Getting on the Web is "a huge education process for the
average Wal-Mart customer," said Skip Helm, an analyst with William Blair.
"They're still a little bit intimidated at the whole process."
[SOURCE: San Jose Mercury News, AUTHOR: Deborah Kong]
(http://www.mercurycenter.com/svtech/news/indepth/docs/yahoo121599.htm)

BROADBAND

THE 12 DAYS OF BROADBAND
Issue: Broadband
A 12-day series from the FCC on how broadband is changing the way we work,
play and live. Each day will be devoted to a specific aspect of broadband
use and potential use such as education, telemedicine, news and information
gathering, and shopping. Day one is the overview on the future of broadband.
Day two focuses on the accessibility of the Internet and bringing the
outside world closer to people with disabilities.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9083.html)

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

Communications-related Headlines for 12/14/99

INTERNET
Internet Tax plan Likely to Deadlock (USA)
Media Giants' Net Change (USA)Dot-Com Ads Surpass $1 Billion (SJM)
Read All About It! Internet Not Killing Newspapers (SJM)

E-COMMERCE
Stanford Creates E-Commerce Center (NYT)

TELEPHONY
MCI's Fine Art of Fine Print (WP)
U.S. Hires Stephen Axinn to Review the MCI WorldCom-Sprint Merger
(WSJ)

INTERNET

INTERNET TAX PLAN LIKELY TO DEADLOCK
Issue: Internet/Regulation
The Clinton administration's decision to oppose plans for making the
Internet a tax-free zone is expected to block the Advisory Commission on
Electronic Commerce from recommending that goods bought online be exempt
from sales taxes. The commission is composed of 19 business, government and
consumer representatives and will be meeting for its third session today and
Wednesday in San Francisco. The panel faces a deadline of April 21 to report
to Congress. The Clinton administrations' refusal to back plans to make the
Internet tax-free is the first of its kind. The Clinton administration,
which has three members on the commission, voiced deep concerns Friday about
making online purchases tax-free, making it nearly impossible for the
panel's
chairman, Virginia Governor James Gilmore, to gain the necessary two-thirds
majority for a ban on Internet sales taxes. The panel appears equally
unlikely to endorse a National Governors' Association plan that would
establish a voluntary system for online merchants to collect sales taxes.
The most likely scenario would be an endorsement of one of three less
controversial positions: banning taxes on Internet access, opposing
international tariffs on electronic commerce and eliminating the existing 3%
federal tax on telephone service.
[SOURCE: USA Today (2A), AUTHOR: Richard Wolf]
(http://www.usatoday.com/usatonline/19991214/1750374s.htm)

MEDIA GIANTS' NET CHANGE
Issue: Internet/Media
This time last year, executives assured analysts that their companies had
Web ventures even though most were ancillary businesses put in place to
capture any lucrative overflow if the Internet became a profitable media
force. Last week at the PaineWebber Annual Media Conference however,
companies such as Time Warner, Walt Disney's Go.com, Seagram, News Corp.,
Viacom and USA Networks had a different message. Not only are they deeply
integrating the Internet into their businesses they are integrated it into
almost everything they do. What accounts for the change? Internet companies
have given large businesses in the physical world the financial freedom to
rush into the new world by advertising on established media. But executives
are not spending heavily in new media just because they have a lot of cash.
They see the investments as safe, expecting them to eventually become
profitable. Some say that the marketing firepower of existing media, plus
their strong balance sheets, will make it impractical for upstarts to take
the Internet from these large companies by storm. USA Networks CEO Barry
Diller also sees an end coming to the Internet's frontier days. "If we do
our work well,'' he says, ''in a couple of years the barriers to entry for
those who want to enter the local (information and e-commerce) world will be
high."
[SOURCE: USA Today (3B), AUTHOR: David Leiberman]
(http://www.usatoday.com/usatonline/19991214/1750337s.htm)

DOT-COM ADS SURPASS $1 BILLION
Issue: Advertising
Internet companies are boosting their advertising in traditional media. For
the first time ever, ad buying by Net firms surpassed $1 billion, said
Competitive Media Reporting a research company that tracks ad spending. The
report said dot-com companies spent $1.37 billion on advertising in
traditional media in the January-September period, up from $349.1 million a
year ago. First was network television at $278.3 million, magazines were
second at $265.2 million. Those figures represented an increase of more than
fourfold for network TV and a near tripling for magazines compared with a
year ago. The rest include Cable TV at $202 million, local television at
$166.9 million, local radio at $154.6 million, national newspapers at $148.7
million, other newspapers got $69.4 million, network radio got $43.1
million, outdoor media had $24.6 million and Sunday magazines attracted
nearly $7 million from dot.com advertising. The online broker E*Trade was
the biggest dot-com advertising spender at nearly $89 million for the first
nine months of the year.
[SOURCE: San Jose Mercury, AUTHOR: Skip Wollenberg - Associated Press]
(http://www.sjmercury.com/svtech/news/breaking/ap/docs/1184641l.htm)

READ ALL ABOUT IT! INTERNET NOT KILLING NEWSPAPERS
Issue: Old Media vs. New Media
Monday, a report published by the Newspaper Association of America called
"Synergize for Success" showed that more people actually read newspapers
online than buy the ink-stained version. It showed that among all adults,
57% read a daily newspaper and 67% read a Sunday newspaper -- but the
numbers rise for adults who call up newspapers online, with 67% reading
dailies and 78% checking out Sunday editions. The poll of 3,693 people age
18 or over, showed that even though more and more are reading newspapers
online, Americans are not abandoning the traditional form. Only 15% said
they read a printed newspaper less frequently since going online and 8% said
they use it more. A majority, 74%, said there has been no change in their
printed newspaper reading habits since they began reading online.
[SOURCE: San Jose Mercury, AUTHOR: Steve James - Reuters]
(http://www.sjmercury.com/svtech/news/breaking/internet/docs/1184884l.htm)

E-COMMERCE

STANFORD CREATES E-COMMERCE CENTER
Issue: E-Commerce
Stanford University has received $20 million from several companies to open
a Center for Electronic Business and Commerce at Stanford Graduate School of
Business. Business school dean Robert Joss said the new center will develop
research and education initiatives needed to understand the impact of
information and communication technologies on firms, industries, and
markets. "The impact of electronic commerce on all aspects of business will
be profound," Joss said. Stanford Business School is among a small number of
leading business schools that have a course on electronic business as part
of its core curriculum.
[SOURCE: New York Times, AUTHOR: Associated Press]
(http://www.nytimes.com/library/tech/99/12/biztech/articles/14stanford-ecomm
erce.html)

MCI'S FINE ART OF FINE PRINT
Issue: Telephony
Some business customers are disturbed to discover that their only option in
resolving a billing dispute with MCI Worldcom over $10,000 is through
private mediation. Many clients are unaware of this rule until they have a
problem, because MCI has buried the arbitration requirements in a truly
obscure document--its tariff filing at the Federal Communications
Commission. "There needs to be something more than [tariff filing] to let
the consumer know they're waiving the right to jury trial," said lawyer Alan
Kaplinsky. Companies are also concerned about MCI's private agreement with
JAMS/Endispute, the arbitration firm that has settled all of its cases since
1994. "JAMS, as a for-profit entity, depends upon MCI's business and has a
strong vested interest in keeping MCI happy," said a complaint on the
matter, filed with the FTC by Innkeepers' Telemanagement & Equipment (ITEC).

[SOURCE: Washington Post (E1), AUTHOR: Caroline E. Mayer]
(http://washingtonpost.com/wp-srv/business/feed/a54475-1999dec14.htm)

U.S. HIRES STEPHEN AXINN TO REVIEW THE MCI WORLDCOM-SPRINT MERGER
Issue: Merger
Justice Department hired a well-known Wall Street antitrust lawyer, Stephen
Axinn, to review the merger between MCI Worldcom and Sprint. A Justice
Department official confirmed Axinn had been hired as a consultant, saying
the move "reflects the importance of the matter, but should not be viewed as
suggesting that we are leaning one way or another on the merits of the
merger." The Justice Department's review of the deal, which could take six
months or more, will focus on the companies' Internet data-transmission
service and on dominance of residential long-distance. Approval of the deal
could come only with divestitures that address any Justice Department
antitrust concerns.
[SOURCE: Wall Street Journal, AUTHOR: John R. Wilke]
(http://interactive.wsj.com/articles/SB945140016472123445.htm)

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

Communications-related Headlines for 12/13/99

TELEVISION
Local Signals May Be Costly for Satellite TV Providers (NYT)
Anniversary of Gore Commission Report (PBTV)

MERGERS
The Curse of Bigness (NYT)
FCC Staff Member Objects To Sprint-MCI Buyout Plan (WSJ)
Upstart NTL Agrees to Acquire Cablecom for About $3.7 Billion (WSJ)

BROADBAND
Bell Atlantic Agrees To Set Up New DSL Unit (SJM)
Letter to FCC Chairman Kennard (MAP)
Deployment of Wireline Services Offering Advanced
Telecommunications Capability (FCC)

INTERNET
Candidates Eager to Negotiate Cyberspace and Cyber-Issues (NYT)
To Politically Connect, And Profitably Collect (WP)

E-COMMERCE
Online Sales Heating Up Tax Debate (WP)

OLD VS NEW MEDIA
Brave New World For Traditional Media Cos (SJM)

SPECTRUM
NTIA Spectrum Newsletter (NTIA)

UNIVERSAL SERVICE
Extending Telecommunications Services To Tribal Lands (NTIA)

TELEVISION

LOCAL SIGNALS MAY BE COSTLY FOR SATELLITE TV PROVIDERS
Issue: Satellites
Now that satellite carriers have finally won the right to include local
broadcasters in their services, they face several challenges to their dreams
of providing direct competition to cable operators. Until two weeks ago,
satellite providers were forbidden from transmitting local channels to most
customers. Now that these restrictions have been lifted by the Satellite
Television Home Viewers Act, the major satellite companies may have to spend
as much as $1 billion to deliver
local stations to dozens of markets nationwide. In addition to the enormous
expense, satellites also fear that they do not have sufficient capacity to
offer all the local channels the FCC is expected to require.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/yr/mo/day/news/financial/satellite-tv.html)

ANNIVERSARY OF GORE COMMISSION REPORT
Issue: Digital Television
From News Advisory: December 18 marks the one-year anniversary of the
release of the so-called Gore Commission report on the future of television.
The report calls for the Federal Communications Commission (FCC) to set
guidelines for the nation's local TV broadcasters as they move to the
expanded airwaves provided by digital TV technology. Former Senator Bob
Dole, while Senate Majority leader, put a $70 billion price tag on these new
public airwaves. Mark Lloyd, coordinator of People for Better TV and
Executive Director of the Civil Rights Forum on Communications Policy, will
discuss the Gore Commission Report, the FCC and the coalition's petition to
require "public interest obligations" of the nation's TV broadcasters at a
Morning Newsmaker event sponsored by the National Press Club, on Friday,
December 17. The event will take place at 10:00 a.m. in the Zenger Room of
the Press Club, 14th & F Street, NW.
[SOURCE: People for Better Television]
(http://www.bettertv.org/release128.html)

MERGERS

THE CURSE OF BIGNESS
Issue: Competition vs. Concentration
[Op-Ed] Competition is the driving force of free enterprise, Safire begins.
Concentrated power is the greatest danger to capitalism. The essay is an
examination of the growing concentration of American big business and how
only behemoth's can compete against each other (or, at least, that's how the
antitrust argument goes). Safire then aims to explode the following myths:
Myth No. 1: Globalization requires American-based multinational giants to
compete with giants overseas. Myth No. 2: Democrats crack down on too-big
business, while Republicans defend it. Myth No. 3: If a cartel or an
industry with only two companies can deliver the efficiencies of low cost,
the consumer benefits. Myth No. 4: Mere size is no sin; each case should be
handled on its own merits. Myth No. 5: Technology is changing so fast that a
little pipsqueak company can bring a giant to its knees. Safire claims that
the conservative zeal to protect competition is missing in Congress and the
White House and is not even mentioned on the campaign trail.
[SOURCE: New York Times (A37), AUTHOR: ]
(http://www.nytimes.com/library/opinion/safire/121399safi.html)

FCC STAFF MEMBER OBJECTS TO SPRINT-MCI BUYOUT PLAN
Issue: Merger/Regulation
According to Saturday's Washington Post, an October 21st letter to Federal
Communications Commissioners says Tom Krattenmaker, research director of
the FCC's policy office, objected to the combination of the Internet
backbone networks of Sprint and MCI, as well as to a greater concentration
in long-distance services. FCC Chairman William Kennard has said the deal
will get a tough review, saying that "the parties will bear a heavy burden
to show that consumers will be better off." An FCC spokeswoman said the
letter was a "very preliminary assessment" by a staff member and doesn't
represent the views of the Commission. Earlier this year, Krattenmaker
expressed serious reservations about the merger of SBC and Ameritech, which
the commission approved with conditions.
[SOURCE: Wall Street Journal, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB94503967290858969.htm)

UPSTART NTL AGREES TO ACQUIRE CABLECOM FOR ABOUT $3.7 BILLION
Issue: Merger/Cable
Today, NTL agreed to acquire Cablecom, the cable-television business
controlled by Switzerland's Swisscom and others, for about 5.8 billion Swiss
francs ($3.7 billion). NTL has its headquarters in the U.S. and is run by
U.S. executives, but almost all of its assets are in Britain. NTL is run by
Barclay Knapp, an aggressive Nebraskan who, with a partner, acquired some
cable assets in the U.S. and used a Nasdaq Stock Market listing to raise
billions in financing. They then purchased a string of smaller cable players
until NTL was a force to be reckoned with in Europe. NTL acquired Cable &
Wireless with the help of France Telecom, and that acquisition made NTL the
largest cable-TV provider in Britain and a rival to British
Telecommunications and British Sky Broadcasting. Cablecom was formed in 1994
through the merger of four cable companies and reaches nearly 1.5 million
homes.
[SOURCE: Wall Street Journal, AUTHOR: Steven Lipin and Anita Raghavan]
(http://interactive.wsj.com/articles/SB945039764896667804.htm)

BROADBAND

BELL ATLANTIC AGREES TO SET UP NEW DSL UNIT
Issue: Competition/Broadband
Last Friday, Bell Atlantic said it would set up a separate affiliate to
sell digital subscriber line (DSL) connections in New York state, as the
company wants to assure regulatory approval of its bid to offer long
distance service there. In a letter to the Federal Communications Commission
an agreement was established for a separate unit to assure regulators that
competing providers of high-speed data links would get equal treatment from
local carrier Bell Atlantic. The separate unit would have to pay for access
to Bell Atlantic's facilities under the same terms provided to competitors,
ensuring a level playing field. But, Bell Atlantic is a dominant provider of
local phone service in 13 states stretching from Maine to Virginia.
Carriers that compete with Bell Atlantic to provide high-speed service using
Digital Subscriber Line (DSL) technology in New York complained that Bell
Atlantic was not giving them equal access to local loops, the basic copper
wire lines running to customers. The FCC asked for comments on Bell
Atlantic's pledge by December 17th and The FCC will decide by December 28th
whether to approve Bell Atlantic's request to enter the New York market.
[SOURCE: San Jose Mercury, AUTHOR: Reuters]
(http://www.sjmercury.com/svtech/news/breaking/internet/docs/1180629l.htm)
See Also:
BELL ATLANTIC CLOSE TO LONG-DISTANCE MARKET
[SOURCE: USA Today (1B), AUTHOR: Paul Davidson]
(http://www.usatoday.com)
FCC's Homepage
(http://www.fcc.gov/)

LETTER TO FCC CHAIRMAN KENNARD
Issue: Open Access/Broadband
In a 12/6 letter to FCC Chairman Kennard, MAP President and CEO Andrew Jay
Schwartzman
outlines his reasons for not signing onto AT&T's letter on Open Access: 1)
AT&T was unwilling to discuss, much less consider, several criteria which
are essential to insuring that cable operators will not abuse their monopoly
position to favor certain content and certain business partners. This
inhibits the Internet's current role as a renewable source of constant
innovation, economic growth and free expression. 2) With the unexplained
withdrawal of Excite( at )Home from the discussions, there was no longer any
assurance that Excite( at )Home would cooperate in the planning and
implementation of AT&T's commitments, or in preparing for broader access in
the "post
exclusivity" period. 3) Widespread mischaracterization of the recent FCC
staff report on broadband access, including misleading statements by a high
level Commission official at a public meeting that demonstrated
the letter could be misused to make
it seem that AT&T has in fact agreed to provide "open access." [See more at
the URL below]
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/filings/MAPLTR.pdf)
See Also:
Public-Interest Advocates Reject AT&T's Empty Promise,
Call for FCC Policy
[SOURCE: Center For Media Education]
(http://www.cme.org/openroad/press_1206.html)

DEPLOYMENT OF WIRELINE SERVICES OFFERING ADVANCED TELECOMMUNICATIONS
CAPABILITY
Issue: Advanced Services
From Report & Order ["we" being the FCC]: In this Order we adopt measures to
promote the availability of competitive broadband xDSL-based services,
especially to residential and small business customers. We amend our
unbundling rules to require incumbent LECs to provide unbundled access to a
new network element, the high frequency portion of the local loop. This
will enable competitive LECs to compete with incumbent LECs to provide to
consumers xDSL-based services through telephone lines that the competitive
LECs can share with incumbent LECs. The provision of xDSL-based service by
a competitive LEC and voiceband service by an incumbent LEC on the same loop
is frequently called "line sharing." In addition, we adopt spectrum
management policies and rules to facilitate the competitive deployment of
advanced services.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99355.txt)

INTERNET

CANDIDATES EAGER TO NEGOTIATE CYBERSPACE AND CYBER-ISSUES
Issue: Politics/Internet
As campaigns for the 2000 presidential elections begin to heat up, the
candidates are eager to prove themselves Internet savvy and tech industry
friendly. "The pace of candidate education is nearly as rapid as the pace of
technological development," said Rep. Christopher Cox, (R-CA) "In not very
many years, politics has moved from a lot of smoke-filled rooms and ward
bosses giving out turkeys to constituents to dueling e-mails," said Sen. Ron
Wyden (D-OR). When it comes to Internet policy, one of the most politically
charged of the issues may be whether and how to apply sales taxes to
electronic commerce.
[SOURCE: New York Times (A25), AUTHOR: Richard W. Stevenson]
(http://www.nytimes.com/library/tech/99/12/biztech/articles/13politics.html)

TO POLITICALLY CONNECT, AND PROFITABLY COLLECT
Issue: Politics/Internet
SpeakOut is the latest political activism site to make itself heard on the
Web. The site will allow visitors to gather information on politicians and
issues and then voice their opinions about each. Critics consider polling on
the Internet to be highly controversial. Ron Howard, who came up with the
idea for SpeakOut, says the site will be nonpartisan and fully
operational in January. SpeakOut will collect opinions from people who
write in and conduct Internet polls and then sell the results to special
interest groups, campaigns and other organizations or individuals. Howard
has lured former Reagan White House deputy chief of staff Michael Deaver,
Kerry Kennedy Cuomo and Susan Eisenhower to serve on a board of advisers.
SpeakOut will sell only statistical results, not personal information such
as names and e-mail addresses.
[SOURCE: Washington Post (F10), AUTHOR: Sarah Schafer]
(http://washingtonpost.com/wp-srv/WPlate/1999-12/13/021l-121399-idx.html)

E-COMMERCE

ONLINE SALES HEATING UP TAX DEBATE
Issue: Regulation/Internet
A political fight is building over whether electronic purchases should be
subject to the same sales taxes as goods bought in a store, with states and
local governments worrying that they could lose as much as $10 billion per
year in tax revenue to online commerce by 2003, according to the National
Governors' Association. On one side of the arguments are many state and
local government officials, who say they will lose needed tax revenue for
schools, police officers and other basic municipal services, and
bricks-and-mortar merchants who argue that they can't compete if online
rivals play by different rules. On the other side of the argument are
Republican congressional leaders, anti-tax activists, some business
executives and even a few local officials, including Virginia Gov. James S.
Gilmore III (R), who say a lack of hassles over sales tax has accelerated
the growth of e-commerce and the $30 billion Internet retail market
has contribution to the U.S. economic boom. The two sides will meet in
San Francisco tomorrow for a two-day meeting of the Advisory Commission on
Electronic Commerce, a 19-member panel created by Congress last year.
Gov Gilmore, the group's chairman, will push a proposal to give online
commerce a permanent tax exemption. A rival proposal that arrange for
third-party clearinghouses to work with online merchants to compute the
appropriate tax and remit it to the states.
[SOURCE: Washington Post (A1), AUTHOR: Rajiv Chandrasekaran]
(http://washingtonpost.com/wp-srv/WPlate/1999-12/13/078l-121399-idx.html)

OLD VS NEW MEDIA

BRAVE NEW WORLD FOR TRADITIONAL MEDIA COS
Issue: Old Media vs. New Media
Wall Street analysts say it's not enough to just sell newspapers or movies
and that media companies who want to survive in the 21st century must
embrace "omni-media". A major media industry conference this week
highlighted the traditional media's need to adjust to a computerized era for
delivering information. PaineWebber analyst Leland Westerfield said "It's
finding an audience by knowing their interests. It's branding and using
brands to integrate into interactive media like the Internet, TV and
magazines." Harold McGraw, McGraw-Hill's chairman and chief executive
officer, said, "It's a very different environment now and we are looking at
different partners and different types of penetration. If you don't do that,
you'll be shut out of markets." The Washington Post is a traditional media
company that is getting involved in the different areas opened up by
the Internet or digital technology. At the conference President and Chief
Operating Officer Alan Spoon outlined Internet services and broadcasting
outlets the company has branched into besides print.
[SOURCE: San Jose Mercury, AUTHOR: Steve James - Reuters]
(http://www.sjmercury.com/svtech/news/breaking/internet/docs/1180632l.htm)

SPECTRUM

NTIA SPECTRUM NEWSLETTER
Issue: Spectrum
A new newsletter on spectrum management offered by the NTIA. First issue
includes stories on GPS; Fixed Wireless Access; Panama; Adjacent Band
Interference -- yeah, right, nightstand reading.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/osmhome/newsletr/spectrum.htm)

UNIVERSAL SERVICE

EXTENDING TELECOMMUNICATIONS SERVICES TO TRIBAL LANDS
Issue: Universal Service
NTIA recently filed reply comments in the above titled FCC proceeding. NTIA
applauds the Commission in its efforts to identify potential terrestrial
wireless and satellite policy initiatives to address the telecommunications
needs of Indians living on tribal lands and to consumers in other unserved
areas. NTIA further commends the Commission's efforts through this
proceeding to secure for consumers living on tribal lands and other unserved
areas the same
opportunities to take advantage of telecommunications capabilities that are
available to other Americans.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/fccfilings/reply120999cmts99-266.htm)

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

Communications-related Headlines for 12/10/99

DIGITAL DIVIDE
Clinton Addresses Gap in Computer Access (CyberTimes)
Clinton To Tour Internet-Poor Areas Of U.S. (SJM)

INTERNET
Copyright Decision Threatens Freedom to Link (CyberTimes)
Agency Giants Rush To Capitalize On Internet Advertising (NYT)
'Buyer Beware' Also Applies To Web (USA)

BROADBAND
Wireless Test by BellSouth (NYT)

MERGERS
Nortel Networks Is in Discussions To Buy Qtera in $3 Billion Deal
(WSJ)
BellSouth Joins With Dutch in a $20 Billion German Wireless Deal
(NYT)

DIGITAL DIVIDE

CLINTON ADDRESSES GAP IN COMPUTER ACCESS
Issue: Digital Divide Summit
Commerce Secretary William Daley opened the department's Digital Divide
summit to an overflow crowd of some 800 people, Thursday. Before the
Summit's opening, President Clinton announced an executive directive to
cabinet members to take specific action on the digital divide and a spring
tour of the country focusing on the problem. Zo