January 2000

DIGITAL DIVIDE
We're Not All Connected, Yet (NYT)
Cheap Computers Bridge Digital Divide (WSJ)

INTERNATIONAL
China Issues Rules to Limit E-Mail and Web Content (NYT)
France Telecom Outbids Partner From Germany for Global One (WSJ)
Now Playing Europe: Invasion of Multiplex, and Fear of Culture
Snatching (NYT)

TELEVISION
Minorities Eye Government Role (USA)

INTERNET
Simple New Gadget Lets You Go Online (WSJ)
Computer Access in Schools Varies, MD Report Shows (WP)

DIGITAL DIVIDE

WE'RE NOT ALL CONNECTED, YET
Issue: Federal Initiatives
President Clinton is expected to raise the issue of home Internet access at
tonight's State of the Union address. Expected is a Silicon Valley-inspired
proposal with the working name of "ClickStart." The program, which is
currently in trial phase, would include $50-$100 million in competitive
grants to communities and organizations involved in efforts to help families
go online. For a $5 copayment each month, each recipient will get a $10
monthly federal subsidy in the form of a voucher. Proponents feel
comfortable that the $180-per-year subsidy is enough to buy both a
functional PC and Internet access. [Note: The proponents are looking at the
many combinations of advertising-supported PC and Internet access programs.]
Some technology access advocates are torn. "Historically, the poor are the
most susceptible to advertising generally...and the most prone to being
misled by dishonest advertising," said Mr. Daniel Ben-Horin, president of
CompuMentor in San Francisco, one of the nation's largest providers of
technology assistance services to nonprofit groups and schools. At the same
time, Mr. Ben-Horin said he lauded the effort as the first one to approach
the problem on a large scale.
[SOURCE: New York Times, AUTHOR: Katie Hafner]
http://www.nytimes.com/library/tech/00/01/circuits/articles/27clic.html

CHEAP COMPUTERS BRIDGE DIGITAL DIVIDE
Issue: Federal Initiatives
[Op-Ed] John Simons, a former technology policy reporter with The Wall
Street Journal and Markle fellow at the New America Foundation in Washington
questions the need for massive federal programs to fight what may be solved
by the market. Simons asks, "Is the digital divide really a problem that
requires a government solution?" He argues that the reasoning behind the
ClickStart initiative - survey numbers from the Department of Commerce - do
not reflect the falling price of PC's - which he places at $844 - or the
increased market attention to first-time buyers. Simons also argues that the
second-hand PC market and smaller hand-held devices can off-set the divide.
Additionally, corporations and organizations such as the Information
Technology Association of America (ITAA) can affect the shortage of minority
workers through existing programs and proposed "digital opportunity
initiatives" under which its member companies will offer internships to
talented minority students." Simons does see a limited and specific role for
government: "As part of the 1996 Telecommunications Act, telecom companies
pledged to deploy new services--such as high-speed Internet access and
digital cable--to rural areas and inner cities. The Federal Communications
Commission should keep a watchful eye on megafirms like America Online-Time
Warner to make sure they live up to this commitment. Policy makers should
also consider offering tax incentives to companies that provide technical
school-to-work training. For the poorest of the poor, government might
consider subsidizing public street-corner Internet kiosks, as it did with
public telephones decades ago. But we don't need massive new government
programs to bridge the ever-dwindling digital divide."
[SOURCE: Wall Street Journal (A22), AUTHOR: John Simons, Markle Fellow at
the New America Foundation]
http://interactive.wsj.com/articles/SB948928952965420429.htm

INTERNATIONAL

CHINA ISSUES RULES TO LIMIT E-MAIL AND WEB CONTENT
Issue: International/Internet
The Chinese government has just issued strict new rules to limit the release
of information on the Internet. The new regulations, published today in the
Communist Party newspaper People's Daily, involve the posting of "state
secrets," a term loosely used to describe information that the government
has not sanctioned for release. Today's announcement is basically a
reiteration of existing laws, but serves as a warning that could have
chilling effects on the lively discussions that crisscross China via e-mail
and chat-room postings. "These regulations will not have much of an effect
on us now, since we already conform to these kind of requirements," said
Paul Jin, deputy executive general manager at Sina.com, one of China's most
popular sites. In the last year, the government arrested people for posting
illegal information on the Web.
[SOURCE: New York Times (A1), AUTHOR: Elisabeth Rosenthal]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/27china.html)

FRANCE TELECOM OUTBIDS PARTNER FROM GERMANY FOR GLOBAL ONE
Issue: International/Mergers
France Telecom announced Wednesday that it has reached agreements with
Sprint and Deutsche Telekom to buy their shares in the ownership of Global
One for $3.89 billion and assumed debt. France Telecom will pay Sprint $1.13
billion and will assume $276 million in debt for its share and will pay
Deutsche Telekom $2.76 billion in cash and pay off $188.5 million worth of
debt for its part of Global One, which provides multinational businesses
with telecommunications services. These agreements mark the end of several
months of contention as to the future of the joint venture. Sprint has
sought to leave since it was bought by MCI WorldCom, a deal which will help
it gain international prominence. Deutsche Telekom is expected to use its
cash to expand its Internet business, and may end up bidding on Sprint's
Internet backbone. France Telecom will use the assets it acquired to further
its goal of becoming a major carrier throughout Europe.
[SOURCE: Wall Street Journal (A1), AUTHORS: Kevin J. Delaney, William Boston
and Nicole Harris]
(http://interactive.wsj.com/articles/SB948894064894142846.htm)
See Also:
SPRINT CUTS COSTLY TIES, SELLS STAKE IN GLOBAL ONE
[SOURCE: USAToday (3B), AUTHOR: Shawn Young]
(http://www.usatoday.com/)

NOW PLAYING EUROPE: INVASION OF MULTIPLEX, AND FEAR OF CULTURE SNATCHING
Issue: International/Media and Society
The European anxiety over the importation of American culture is well known,
especially when it comes to France. So it wasn't surprising that it took
Bruno Frydman, who works for AMC Entertainment, six years to open a $20
million dollar, 20 screen, 4,010 seat multiplex theater in Dunkirk, France.
Karsten Grummitt, managing director of Dodona Research, said that "in France
and Italy, particularly, where governments protect the film industry,
multiplexes are viewed as an intrinsically American plan that leads to
American domination of the industry." So how did Mr. Frydman get the
multiplex built? In Dunkirk, where the decline of heavy industries like
steel and chemicals has driven unemployment to 15 percent, the offer to
create 600 jobs was well received. And while some still fear for the future
of the local film industries, local planners were convinced that a big
shopping anchored by a multiplex theater would offset the decline in their
inner city. But what about the two existing movie houses -- one of which was
created in the 1960's as part of the French government's effort to sustain
interest in high quality film and the national film heritage? A deal was
struck allowing the theater to show non-French movies, including popular
American films, with the original English-language soundtrack but with
French subtitles; the multiplex would show only dubbed versions. The other
theater was demolished.
[SOURCE: New York Times, AUTHOR: John Tagliabue]
(http://www.nytimes.com/yr/mo/day/news/financial/europe-multiplex.html)

TELEVISION

MINORITIES EYE GOVERNMENT ROLE
Issue: Television/Media and Society
NAACP president Kweisi Mfume, speaking before the National Association of
Television Program Executives (NATPE) convention Wednesday, said that
government involvement might be necessary to increase the level of minority
involvement in television. "We may. . .have to look at other options, like
government regulations," said Mfume. Other activists agree with his
statement. Felix Sanchez of the National Hispanic Foundation for the Arts
said that prime time diversity "should be a campaign issue" this year.
Seeking to remedy the lack of minority representation both on and off camera
in the television industry, the NAACP has voluntary agreements with NBC and
ABC and should announce one with Fox soon. A similar agreement is in the
works with CBS. Some are skeptical of the networks' commitment to keeping
these agreements, however. Jacqueline Kong, of Asian American Media
Development noting certain absences at NATPE sessions devoted to diversity
asked, "If NBC signed an agreement, and no one from NBC is here, how is it
going to be implemented?" Kong added, "It's possible we also need
legislation." When questioned whether his call was aimed at scoring public
relations points, Mfume replied "Sure it's good PR, but it's also the right
thing to do. . . communications affects behavior just as much as civil
rights issues do."
[SOURCE: USAToday (5D), AUTHOR: Jefferson Graham]
(http://www.usatoday.com/)

SIMPLE NEW GADGET LETS YOU GO ONLINE
Issue: Internet/Access
If you are new to the Internet and just want an easy way to get on, or you
and your family are in need of a secondary Internet access device, you might
want to know about i-Opener, a product by the company Netpliance. i-Opener
is one of the devices known as "Internet Appliances," a growing line of
products focus on only a few aspects of the Internet. The class of products
include "smarter" digital phones and hand-held computers. In this case, the
i-Opener is the first full color desktop meant to provide only Internet
access. It has a 10 inch flat panel color screen hooked up to a small
keyboard. The keyboard has specific keys for checking e-mail, the weather,
doing shopping, or even ordering pizza. There's no operating system to worry
about, no files or folders to mess with. It dials into the Internet six
times a day to fetch your e-mail and update your content.
[SOURCE: Wall Street Journal (B1), AUTHOR: Walter Mossberg]
(http://interactive.wsj.com/articles/SB948931736257096456.htm)

COMPUTER ACCESS IN SCHOOLS VARIES, MD REPORT SHOWS
Issue: Internet/Education
The Maryland Business Roundtable released a report showing that the
percentage of Maryland classrooms connected to the Internet has increased,
from 23% in 1997 to 58%. The ratio of students per high or mid-speed
computer has also improved, 8 to 1 versus the 12 to 1 in 1995. But all this
good news was tempered by the fact that some counties are doing much better
than others. Within school districts, technology varies greatly at different
schools. "We should insist that all schools have comparable systems. "It's
unfair for some students, who attend a school simply because they have
parents who are more affluent, to have more access to better stuff than
children is less affluent areas," said Prince George's Board of Education
Chairman James Henderson. Prince George's School Superintendent Iris Metts
has put forward a plan to lower the ratio of students to high-speed
computers to 5 to 1 within five years. She's hoping that parents and
politicians will take note of the report and push for more funding for
technology in schools, "We have to make sure that the dollars be distributed
equitably, with state and federal funding giving priority to low-income
communities."
[SOURCE: Washington Post (B2), AUTHOR: David Nakamura]
(http://washingtonpost.com/wp-dyn/metro/A32939-2000Jan26.html)

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

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone does
not represent the tone of the original articles. Headlines are compiled by
Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis (nancy( at )benton.org) -- we
welcome your comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

LEGISLATION
Little Progress Expected On High-Tech Legislation (Cyber)

INTERNET
Computers In The Classrooms: Lessons Learned (WP)
Harvard Web Site Helps Evaluate Risks of Cancer (WP)

E-COMMERCE
Online Spending That Makes Cents (USA)
E-Commerce Backers Are Targeting Latin America, But It's A Tough
Sell (WSJ)

ADVERTISING
Radical Chic: Benetton Takes On The Death Penalty (WP)

LEGISLATION

LITTLE PROGRESS EXPECTED ON HIGH-TECH LEGISLATION
Issue: Legislation
Congress returns this week to a host of high-tech related issues. But in
this election year, high-tech and Internet bills may get more talk than
action. Digital signatures, privacy, Internet taxes, visas for skilled
foreign workers and efforts to bridge the digital divide will likely
dominate the high-tech debate. Because of deadlock within a congressionally
appointed panel charged with making recommendations on taxation of
e-commerce, Congress is expect to extend the moratorium on new Internet
taxes that is set to expire next year. These is also speculation as to
whether Congress will pass any new laws to protect consumer privacy online.
"We are going into an election year, and privacy resonates with the public,"
said Deirdre Mulligan, a privacy advocate with the Center for Democracy and
Technology; "I think we will see many more bills [and] much more discussion
of privacy."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/01/cyber/capital/25capital.html)

E-COMMERCE

ONLINE SPENDING THAT MAKES CENTS
Schools around the nation are discovering that the Internet offers some
fundraising alternatives to selling candy bars and magazine subscriptions.
Since this fall, at least a dozen Web sites that allow online shoppers to
have a portion of their bill sent to the school of their choice have
launched. ''Schools are certainly trying it out around the country, but I
don't think most have seen big results,'' says Tim Sullivan, publisher of
PTO Today magazine. Others, however, are a bit more hopeful. ''I don't
expect it to be big bucks the first time, but I see it as something that's
going to grow,'' said Michael Roland, a Broward County, Fla., school
administrator who registered 60 middle and high schools in his district with
a fundraising site.
Because the field is so new and there's little oversight, Sullivan advises
shoppers to ''Go with the established vendors.''
[SOURCE: USAToday (3D), AUTHOR: Karen Thomas]
(http://www.usatoday.com/usatonline/20000125/1872180s.htm)

E-COMMERCE BACKERS ARE TARGETING LATIN AMERICA, BUT IT'S A TOUGH SELL
Issue: E-Commerce/International
Latin America is heralded as the next frontier for e-commerce. But along the
road to e-commerce success in countries such as Mexico stand several
obstacles - including antiquated back-office computer systems, inefficient
distribution networks and a relatively small Internet-savvy population
-which must be overcome along the way. Additionally, there are concerns,
that Latin Americans who are online will flock to better-funded U.S. sites.
According to the Boston Consulting Group, Latin Americans spent more at
U.S.-based Web sites in 1999 than at homegrown ones.
[SOURCE: Wall Street Journal (A1), AUTHOR: Andrea Petersen]
(http://interactive.wsj.com/articles/SB948756761972224880.htm)

INTERNET

COMPUTERS IN THE CLASSROOMS: LESSONS LEARNED
Issue: Edtech
While Intel and Microsoft announced last week their large donation to help
assist teachers in gaining computer proficiency, some remember the example
of the 1970's company Control Data Corporation. Control Data Corp., headed
by founder William Norris, launched a $900 million computer-based education
system called Plato. William's idea was to meld the worlds of for-profit
business with philanthropic goals. While Plato, which turned out 12,000
hours of instructional software, proved popular with the government and
businesses, it wasn't embraced by public school teachers. Some teachers were
worried that the technology would cost them their jobs. But Plato might have
just been ahead of its time, with computers being alien to the classroom 20
years ago. Microsoft and Intel's donation was based in part on the
realization of the unstoppable march of technological progress. "We need
qualified and well-trained teachers in every classroom, and technology can
help those teachers and their students", Secretary of Education Richard
Riley said in conjunction with the Intel-Microsoft announcement.
[SOURCE: Washington Post (A17), AUTHOR: Kent Allen]
(http://washingtonpost.com/wp-srv/WPlate/2000-01/25/062l-012500-idx.html)

HARVARD WEB SITE HELPS EVALUATE RISKS OF CANCER
Issue: Health
The Harvard School of Public Health has a Web site that calculates an
individual's risk in getting one of the four leading types of cancer -
breast, colon, lung and prostate - via an online questionnaire. Known as
"Your Cancer Risk," the Web site evaluates the online questionnaire's
answers immediately and then provides a risk assessment based on the latest
scientific evidence. The Web site is run by Harvard's Center for Cancer
Prevention and was largely funded by Canyon Ranch Health Resorts.
[SOURCE: Washington Post (Health page 5), AUTHOR: Sally Squires]
(http://washingtonpost.com/wp-srv/WPlate/2000-01/25/019l-012500-idx.html)

ADVERTISING

RADICAL CHIC: BENETTON TAKES ON THE DEATH PENALTY
Issue: Advertising
The company Benetton is starting a yearlong $20 million global ad campaign
that will sympathetically portray American murderers awaiting execution,
conveying what's on their minds. Benetton's US Director of Communications,
Mark Major, in trying to explain the advertising, said, "Once again, it's
very hard for people to see what we're doing and understand that it's not
advertising, that it's a way to get people to think." The ads will be on
billboards and in magazines such as Rolling Stone, Vanity Fair and the New
Yorker. The billboards and posters for the campaign have started appearing
across the country this month, sometimes not far from the communities where
the inmates killed or where they are imprisoned. Bob Garfield, a columnist
at Advertising Age, was repulsed by the campaign, "There is no brand - not a
single one - that has the right to increase sales on the backs, on the
misery, on the fates of condemned men and women, much less their slaughtered
victims."
[SOURCE: Washington Post (C1), AUTHOR: Hank Stuever]
(http://washingtonpost.com/wp-srv/WPlate/2000-01/25/120l-012500-idx.html)

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

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone does
not represent the tone of the original articles. Headlines are compiled by
Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Stephanie Ingersoll
(stephanie( at )benton.org) -- we welcome your comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

FCC
FCC Approves Low-Power FM Radio (WP)
FCC Unveils New Rules on Hiring (WP)

EDTECH
High-Tech Gifts to Education Sets Record (WP)

INTERNET
To Fight Hate Speech Online, U.S. Turns to Housing Law (CyberTimes)
More Firms Seek Unity of Ads on Web, TV (USA)

BROADBAND
Time Warner Deal Partners America Online With AT&T (WSJ)
( at )Home Puts Speed Limits on Uploads by Subscribers (NYT)

TELEVISION
America Online Plans Campaign To Sell Interactive TV to Masses (WSJ)
The Times in News Deal With ABC (NYT)

FCC

FCC APPROVES LOW-POWER FM RADIO
Issue: Radio
The Federal Communications Commission yesterday approved a new class of
low-power FM stations and said it would start accepting applications for
them in May. The new FM stations could hit airwaves by late this year.
"This will empower people to more effectively use the public airwaves to
build stronger communities. There has been an outpouring of support from
around the country, from really diverse communities," FCC Chairman Kennard
said after the vote. The new stations would vary in strength from one watt
to 100 watts, compared to the 6,000 watts used by the smallest FM stations
now allowed. The farthest a low-power FM station could reach is about three
miles; the smallest distance covered would be several blocks. Existing
broadcasters, led by the National Association of Broadcasters, had fought
the measure, saying that the new stations would cause interference on an
already crowded FM band. NAB President Edward Fritts issued this statement
after the vote, "The FCC has turned its back on spectrum integrity. Every
legitimate scientific study validates that additional interference will
result from [low-power FM]. It's a sad day for radio listeners."
[SOURCE: Washington Post (E2), Author: Frank Ahrens]
(http://washingtonpost.com/wp-dyn/business/A7858-2000Jan20.html)
See Also:
LOW POWER RADIO
[SOURCE: FCC (Press Release)]
(http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/2000/nrmm0001.doc)

FCC UNVEILS NEW RULES ON HIRING
Issue: Employment
The Federal Communications Commission replaced a 30-year-old equal
employment opportunity program yesterday with new rules that require
broadcasters to have an active outreach program for hiring women and racial
minorities. The commission doesn't specify a particular outreach program
that must be used, though it does require broadcast companies to produce an
annual report on the results of their efforts. Chairman William Kennard
compared the hiring issues at stations to the continuing controversy over
the dearth of minority characters in network television shows. "We wouldn't
be having this national dialogue if everything was copacetic. We have a
problem." FCC commissioner Harold Furchtgott-Roth disagreed. He argued in
a statement that the rules constituted "a most grievous offense" because
they required that broadcast companies engage in "discrimination based on
race" under the guise of promoting equal opportunity.
[SOURCE: Washington Post (E1), Author: John Schwartz]
(http://washingtonpost.com/wp-srv/business/feed/a9950-2000jan21.htm)
See Also:
EQUAL EMPLOYMENT OPPORTUNITIES
[SOURCE: FCC (Press Release)]
(http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/2000/nrmm0002.doc)
F.C.C. REVISES RULE ON HIRING OF WOMEN AND MINORITIES
[SOURCE: New York Times (A16), AUTHOR: Neil A. Lewis]
(http://www.nytimes.com/yr/mo/day/news/national/fcc-affirm.html)

EDTECH

HIGH-TECH GIFTS TO EDUCATION SETS RECORD
Issue: EdTech/Philanthropy
Microsoft and Intel announced a gift of nearly $500 million yesterday to
provide 100,000 teachers in the US and another 300,000 teachers abroad with
40 hours of training on how to use computers in their classrooms. The
training will take place at regional laboratories, the first which are
scheduled to be established in Arizona, Northern California, Oregon and
Texas. "Computers aren't magic-teachers are," said Intel's chief executive
officer Craig Barrett. Hewlett-Packard and Premio Computer are giving
smaller gifts of computers to support the laboratories. Former Netscape
chief executive James Barksdale and his wife also announced a gift of $100
million to the University of Mississippi. Their gift will be used to
replicate a model reading program that was tested by the state in 1997. The
model reading program will be introduced in preschool through third grade.
The size of the donations set records.
[SOURCE: Washington Post (A12), Author: Kenneth J. Cooper]
(http://washingtonpost.com/wp-srv/national/feed/a9826-2000jan21.htm)
See Also:
INTEL PROGRAM TO BOLSTER EDUCATION AND COMPUTERS
[SOURCE: New York Times (A16), AUTHOR: Edward Wyatt]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/21soft.html)

INTERNET

TO FIGHT HATE SPEECH ONLINE, U.S. TURNS TO HOUSING LAW
Issue: Internet/Content
The Department of Housing and Urban Development (HUD) has invoked the Fair
Housing Act in a lawsuit filed over hate speech on the Internet. The case,
filed in Philadelphia last week, stems from accusations that Mr. Ryan Wilson
and the white supremacist group that he runs, ALPHA HQ, posted death threats
on a Web site in 1998. The charges against Wilson says he violated the law
by threatening a local official and her daughter in order to prevent her
from enforcing the Fair Housing Act. The federal housing act prohibits
anyone from discriminating against people when renting or selling housing.
It also prohibits anyone from threatening, coercing, intimidating or
interfering with anyone "exercising a fair housing right or assisting others
who exercise that right." Jouhari's job was to help housing discrimination
victims file complaints under the act. "The interesting question to me is,
even assuming it's a violation of the housing act, is it First Amendment
protected speech," said Chris Hansen, a lawyer with the American Civil
Liberties Union. "Saying 'I'm going to punch you in the nose' is something
we think of as a threat when you are standing nose-to-nose with a person.
But almost by definition, on the Net such a threat is less imminent," he
said.
[SOURCE: New York Times, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/yr/mo/cyber/cyberlaw/21law.html)

MORE FIRMS SEEK UNITY OF ADS ON WEB, TV
Issue: Advertising
Those who head network ad sales say that there has been a big change in
attitude toward online advertising. Mainstream advertisers are moving to
showcase their products on the TV and Web in unison. "Some of our
mainstream clients recognize that they would be missing the boat not to
communicate through the Net," says Laura Nathanson, the executive vice
president of prime-time sales at ABC. "The industry knows that advertisers
want integrated advertising opportunities. Advertisers are demanding it and
content players are offering it," says Jupiter Communications analyst Drew
Ianni. But not all major companies are embracing the Web the way they do
TV. Proctor & Gamble is one company that is wary of jumping in until they
see how advertising on the Web can boost their sales. "By putting first one
toe, then a foot in the water, packaged companies are going to recognize
that there's huge value out there," Nathanson says.
[SOURCE: USA Today (1B), Author: Greg Farrell]
(http://www.usatoday.com/usatonline/20000121/1865351s.htm)

BROADBAND

TIME WARNER DEAL PARTNERS AMERICA ONLINE WITH AT&T
Issue: Broadband
In buying Time Warner, America Online will find itself linked to arch-rival
AT&T through a separate media partnership called Time Warner Entertainment,
which consists of Time Warner's cable-TV systems -- HBO, Warner Bros. movie
studios and Road Runner, a high-speed Internet access service that works
over cable lines. Time Warner Entertainment, (TWE), is majority owned by
Time Warner and 25.5% owned by cable giant MediaOne Group, which AT&T is
buying. The two separate marriages are making cousins out of AT&T and AOL.
The problem is that each company was seeking a competitive advantage in
broadband -- the very reason AT&T is buying MediaOne, and AOL is buying Time
Warner. The Road Runner product is a potential area of competition. AT&T,
the nation's biggest cable-TV operator, has a major stake in Excite At Home
Corp. - a Road Runner rival that is carried exclusively on AT&T cable
systems. Road Runner is controlled 50-50 by Time Warner and MediaOne. While
the two products do not currently compete they could later depending how the
broadband market unfolds. Once the MediaOne deal closes, AT&T would have a
big influence over both services raising suspicion that antitrust regulators
won't let AT&T keep stakes in both At Home and Road Runner. Further
complicating things for time Warner is a pact announced years ago that was
never acted up: Time Warner giving AT&T use of Time Warner's cable lines for
local phone service. Now this pact will have to receive the nod of AOL --
which might not like giving AT&T a helping hand on broadband. It's also
possible that AOL, anxious for access to AT&T cable systems, might find a
way to work out a deal. There's a chance the two giants could even wind up
becoming major customers of each other.
[SOURCE: Wall Street Journal, AUTHOR: Leslie Caulie]
(http://interactive.wsj.com/articles/SB948408784261188803.htm)

( at )HOME PUTS SPEED LIMITS ON UPLOADS BY SUBSCRIBERS
Issue: Broadband
( at )Home, which provides Internet access over cable to one million subscribers
is in the final stages of introducing a program that limits the speed at
which users can send data. When it is fully implemented in the next few
months, ( at )Home's ONadvantage program will limit the upstream speed for all
customers to 128 kbps. Although cable modems can provide speedy downloads of
Web pages and other data from the Internet, the speed of data moving
upstream, from a subscriber's computer through the cable system and onto the
Internet, is much slower, because the upstream data stream is shared by many
users. Milo Medin, ( at )Home's architect, predicts that only the "bandwidth
hogs" will be upset by the company's new policy. "They are the server
abusers or the people working at home and not fairly using a residential
product that is really for e-mail and Web-surfing," Medin said. "We are not
apologizing for this. We think it's a good thing. Many people will see their
upload speeds increase when the abusers are stopped. Download speeds may
even increase."
[SOURCE: CyberTimes, AUTHOR: Marty Katz]
(http://www.nytimes.com/library/tech/00/01/cyber/articles/21home.html)

TELEVISION

AMERICA ONLINE PLANS CAMPAIGN TO SELL INTERACTIVE TV TO MASSES
Issue: Interactive TV
If all goes as planned with the proposed acquisition of Time Warner, AOL
plans to launch this summer an ambitious new service called AOL TV. Among
other features, subscribers to the new service may be able execute a stock
trade while watching Time Warner's CNNfn financial news, or chat with
friends as they view "ER." AOL Time Warner stands to face tough competition
in the Interactive TV area. Microsoft has agreed to distribute interactive
set-top boxes to millions of AT&T cable subscribers. AOL and Microsoft both
see their respective boxes as tuners that will allow TV sets to blend the
worlds of entertainment and information. Control of those tuners could yield
huge subscription, commerce and marketing opportunities. Past interactive TV
experiments, however, have been far from successful. "In the early days of
this stuff, it's always hardest," says Barry Schuler, president of AOL's
interactive services group. "It's not like you will have an audience with
interactive TVs overnight."
[SOURCE: Wall Street Journal (B6), AUTHOR: Nick Wingfield]
(http://interactive.wsj.com/articles/SB948408398158789164.htm)

THE TIMES IN NEWS DEAL WITH ABC
Issue: Television/Journalism
The New York Times and ABC News announced an agreement to share news
coverage in certain fields, with the information to be delivered both on
television and over the Internet. A daily 15-minute video report on
politics, entitled "Political Points," will be delivered on each
organization's World Wide Web site starting on Monday with coverage of the
Iowa presidential caucuses. At first, the Times will contribute reports in
the areas of technology and health to certain ABC news shows. The deal
between the Times and ABC News comes on the heels of a similar arrangement
announced in November between NBC and the Washington Post Company in which
reporters from The Post and its cousin Newsweek magazine will appear on
MSNBC.
[SOURCE: New York Times (C4), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/times-abc.html)

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

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone does
not represent the tone of the original articles. Headlines are compiled by
Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis (nancy( at )benton.org) -- we
welcome your comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

ONLINE JOURNALISM
Online News Sites Face An Event-Access Crunch (WSJ)

INTERNET
Gutenberg Vs. the Net (WP)
Court Lets Fees for Net Domain Names Remain (USA)

TELEVISION
TV Antidrug Messages Are No Scandal (WSJ)
Test of Faith (WSJ)

POLITICAL DISCOURSE
Don't Rush Into Online Voting, California
Panel Says (CyberTimes)
Bradley Concentrates on the Internet to
Teach Voters About Iowa Caucus (WSJ)
McCurry Joins the Board Of New Political Web Site (WSJ)

EDTECH
Study on Online Education Sees Optimism,
With Caution (CyberTimes)
Speech: E-Rate: A Success Story (FCC)
ZapMe Is Targeted Over Data It Collected on the Internet (WSJ)

COMPETITION/MERGERS
As Telecoms Merge And Cut Costs, Customer Service Is
Often a Casualty (WSJ)
Competition in Video Markets (FCC)
Developments in International Telecommunications Markets (FCC)
Big Firms Rush to Dominate The Latin Broadband Market (WSJ)

ANTITRUST
Microsoft Challenges Antitrust Arguments (WP)

ONLINE JOURNALISM

ONLINE NEWS SITES FACE AN EVENT-ACCESS CRUNCH
Issue: Online Journalism
As the number of online news outlets grows, some independent news sites are
finding it difficult to gain access to certain big events. There is a
growing trend for movie studios and event sponsors to grant exclusive deals
with particular news sites to cover events. ABC.com and Dick Clark
Productions, producer of the American Music Awards, both units of Walt
Disney, entered into an agreement that barred all other online reporters
from interviewing winners of the American Music Awards after the show. "This
is like being told you can't even interview the athletes and can only sit in
the stands and eat hotdogs," said Alex Ben Block, editor in chief of
eStar.com. "It makes it hard for Internet journalists who are trying to form
credible news organizations." While technology helped make journalism
accessible to anyone with a computer and an Internet connection, it has not
guaranteed smaller outlets access to the news they want to cover.
[SOURCE: Wall Street Journal (B7), AUTHOR: Matthew Rose and Joe Flint]
(http://interactive.wsj.com/articles/SB948236759376677501.htm)

INTERNET

GUTENBERG VS. THE NET
Issue: Internet
[Op-Ed] While Steve Case of AOL calls the new century "the Internet Century"
and some claim that the Internet rivals the invention of the printing press,
Robert Samuel claims that we are all suffering from "historical amnesia."
Disputing the claim that no major innovation has spread as quickly as the
Internet, which went from only a handful of homes being connected in 1990 to
38 percent of households being connected in 1999, Samuelson points out that
the adoption of the Internet roughly matches the adoption of the radio
(which went from zero to about 46 percent of households in the 1920s) and
lags behind the adoption of the TV (which went from 9 percent of households
in 1950 to 87 percent in 1960). And while the printing press gained its
historical significance by leading to mass literacy and enabling the
scientific revolution, the Internet is currently just a platform for e-mail
or marketing. To be in league with the printing press, the Internet needs to
become something more.
[SOURCE: Washington Post (A23), AUTHOR: Robert J. Samuelson]
(http://www.washingtonpost.com/wp-srv/WPlate/2000-01/19/013l-011900-idx.html
)

COURT LETS FEES FOR NET DOMAIN NAMES REMAIN
Issue: Internet
The Supreme Court rejected an appeal yesterday, allowing Network Solutions
to continue to charge domain name registration fees that critics say are
exorbitant. A group of web site owners originally filed the lawsuit against
Network Solutions, charging that Network Solutions' fees were excessive and
amounted to an unauthorized federal tax. The system for registering Internet
names has been run by Network Solutions under an agreement with the National
Science Foundation. Network Solutions is no longer the sole registrar of
Internet Domain names.
[SOURCE: USA Today (4A), AUTHOR: Richard Willing]
(http://www.usatoday.com/usatonline/20000119/1856315s.htm)

TELEVISION

TV ANTIDRUG MESSAGES ARE NO SCANDAL
Issue: Television
[Op-Ed] The news of broadcast television networks working with the Office of
National Drug Control Policy to coordinate antidrug messages in their shows
was met with extreme outrage and indignation. Yesterday's New York Times
suggested that the "deeply unhealthy" practice "should disturb anyone who
believes in the need for all media. . . to remain free from government
meddling." John Podhoretz, however, believes that the concern may be
excessive. "Big Brother isn't programming prime-time," he says. The Drug
Control Policy office, explains Podhoretz, "offered an incentive to private
businesses with whom it had an airtight contractual arrangement to do
something of redeeming social value that cost the taxpayers nothing and
fulfilled Congress's intention to get antidrug messages on the air." Because
the networks were in no way compelled to agree to this arrangement, the
government cannot be accused of media manipulation. "The only real
'miscommunication' here," says Podhoretz, "is that the networks kept the
arrangement secret from the people who make the programs."
[SOURCE: Wall Street Journal (A22), AUTHOR: John Podhoretz (columnist for
the New York Post)]
(http://interactive.wsj.com/articles/SB948236690458667620.htm)

TEST OF FAITH
Issue: Television/FCC
[Editorial] There has been a lot of press surrounding a three-way Pittsburgh
TV license swap among WQED, Cornerstone TV and Paxson Communications,
because of request from Sen. John McCain (R-AZ) -- a large recipient of
Paxson contributions -- that the FCC give a speedy resolution to the
application. The real issue in the case is not McCain's request, but the
FCC's ruling which declared that programming "primarily devoted to religious
exhortation, proselytizing, or statements of personally held religious views
and beliefs" would not be regarded as educational. The FCC went on to say in
a footnote that "church services generally will not qualify as 'general
education' programming under our rules." The authors claim that PBS
affiliates, which operate under educational licenses, engage in just that
kind of programming in question when they air shows such as "It's
Elementary," a video on teaching schoolchildren about homosexuality and
tolerance. They conclude: "any honest look at such programming has to lead
any honest examiner to ask just who is doing the proselytizing here." It is
not the government's role to "distinguish between the educational value of a
Pat Robertson sermon and a Bill Moyers PBS special," and "what does it mean
for the First Amendment to have an FCC that forbids one and subsidizes the
other?
[SOURCE: Wall Street Journal (A22), AUTHOR: Wall Street Journal Editorial
Staff]
(http://interactive.wsj.com/articles/SB948233845793021149.htm)

POLITICAL DISCOURSE

DON'T RUSH INTO ONLINE VOTING, CALIFORNIA PANEL SAYS
Issue: Political Discourse
In a 54-page report released yesterday, the California Internet Voting Task
Force (www.ss.ca.gov/executive/ivote/) said that security risks were
too significant to allow voters to cast ballots from home or office over the
Internet. The task force -- composed of 34 technologists, political
scientists and civic leaders -- is the first state-level body to examine the
issue. The electoral system could be undermined by virus attacks and online
fraud, the group concluded. At this time," the report reads, "it would not
be legally, practically or fiscally feasible to develop a comprehensive
remote Internet voting system." For the commission, the chief technological
concern was that even if votes were transmitted securely, computer viruses
could potentially take over citizens' computers and submit votes. The report
also recommended that individuals never be allowed to register to vote
online because such a system would be "an invitation to automated,
large-scale voter fraud." The commission concluded that the use of digital
signatures on initiative, referendum and recall petitions should be
prohibited because of the lack of a standard method of digital
identification. "I think eventually Internet voting is going to happen,"
said Mark Rhoads, vice president of the United States Internet Council, a
nonprofit educational group in Washington that is financed by technology
companies. "There's nothing inherently more mischievous about Internet
voting than paper ballots," said Rhoads, a former state senator in Illinois
who also was chairman of the state's election law study commission. "It
doesn't surprise me that they wouldn't want to jump into it this year, being
a presidential election year."
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney (rfr( at )nytimes.com)]
(http://www.nytimes.com/library/tech/00/01/cyber/articles/19vote.html)

BRADLEY CONCENTRATES ON THE INTERNET TO TEACH VOTERS ABOUT IOWA CAUCUS
Issue: Political Discourse
Since there hasn't been a competitive Democratic caucus in Iowa since 1988
[Tom Harkin in '92],
educating voters may be especially important this year. Bill Bradley's camp
has launched a tutorial about how to participate in the Iowa caucuses
(www.caucusforbradley.com), complete with five video clips. The site is one
way for the Democratic candidate to get around having to rely volunteers to
help voters with Iowa's caucusing process. Iowa's caucuses are eccentric
affairs for both parties. While Republicans submit a secret ballot,
Democrats must literally stand to be counted for their candidate.
Additionally, the voter has to be prepared to withstand heckling and other
forms of pressure to defect to a competitor. Even the process of "reaching
out" - literally reaching over and joining hands to bring a voter over to
another candidate is covered by one of the five videos. "I think it's the
right way to use the Web," said Michael Cornfield, a professor of political
management at George Washington University who specializes in Internet
campaigns. "There's never been a communications medium before where you
could walk people through" something so complex as the Iowa caucuses, he
said.
[SOURCE: Wall Street Journal, AUTHOR: Robert Cwiklik]
(http://interactive.wsj.com/articles/SB948236219140176813.htm)

MCCURRY JOINS THE BOARD OF NEW POLITICAL WEB SITE
Issue: Political Discourse
"In the starkest way, the 30-second television commercial as a principal
means of communication is about to expire and will be replaced with more
interactive exchanges," said former White House Press Secretary Mike McCurry
who has now joined the board of Grassroots.com. The enormous political
marketing industry is moving online at a rapid pace, spawning over a dozen
for-profit political dot-coms. They range from former Clinton adviser Dick
Morris's vote.com (www.vote.com) to Netivation.com, a publicly traded
political Web site (www.netivation.com) that raised $22 million in its
initial public offering last June. All are vying to be "the" political
portal; none is showing a profit yet. Kim Alexander, who runs a non-profit
Web site for the California Voter Foundation, agrees. "I find encouraging
that the financial community finds it worthwhile to back political Web
sites. On the other hand, it's really important that voters pay attention to
the editorial policy of a for-profit site." Many for-profit sites sell
personal information on their visitors, she says. "Some voters may not be
comfortable with that; it's one of the for-profit driving incentives."
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Ann Grimes
(ann.grimes( at )wsj.com)]
(http://interactive.wsj.com/articles/SB948238105668101502.htm)

EDTECH

STUDY ON ONLINE EDUCATION SEES OPTIMISM, WITH CAUTION
Issue: EdTech
John R. Regalbuto, a chemical engineering professor at the University of
Illinois in Chicago, started a year-long effort to examine what works and
what doesn't work when classes take place online. In a report
(www.vpaa.uillinois.edu/tid/report/) released last week, Prof.
Regalbuto and 15 other UofI tenured professors conclude that an online class
can be a worthy and in some cases a great educational experience. But to
work effectively, online class sizes should be limited. And Internet
learning may be inappropriate for certain academic endeavors, most notably,
the completion of an entire undergraduate degree program. "The good news is
that online teaching can be done with high quality," said Prof. Regalbuto.
"But the bad news is that it is inherently more difficult to create and
maintain the bond a professor needs to have with his or her class for good
teaching to occur. The costs will be higher, and that will disappoint
administrators eager to make a lot of money."
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels (mendels( at )nytimes.com)]
(http://www.nytimes.com/library/tech/00/01/cyber/education/19education.html)

SPEECH: E-RATE: A SUCCESS STORY
Issue: EdTech
Chairman Kennard's 1/14 address to the Educational Technology Leadership
Conference - 2000. In his speech, Chairman Kennard commended all those that
helped make the E-Rate a success. He noted that the E-Rate has committed
$3.65 billion to over 50,000 schools and libraries and has also helped
reduce the "digital divide" with 70% of the Year Two funding having gone to
schools from the lowest income areas. Kennard asked for continued support
for the E-Rate. "I believe the E-Rate program is one of the most significant
programs of modern government, and when the history of the program is
written, the contributions of your profession will be in the early
paragraphs," Kennard said.
Summary courtesy of NECA.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/2000/spwek002.html)

ZAPME IS TARGETED OVER DATA IT COLLECTED ON THE INTERNET
Issue: Privacy
A diverse coalition of advocacy groups charges that ZapMe, a company that
brings online advertising into schools, is helping advertisers collect the
names and addresses of minors without parental consent. The group is calling
for new state laws that mandate parental approval, because Federal law only
requires parental consent for the online gathering of identifying
information about children under 13. ZapMe offers over 1,000 schools Web
access and free high-tech equipment in return for schools' agreement that
the computers will be used at least four hours a day and that schools
provide the ages, genders and zip codes of student users. ZapMe Chief
Executive Rick Inatome said the company only provides broad demographic
information to advertisers, and not data on individual students.
[SOURCE: Wall Street Journal (B6), AUTHOR: Daniel Golden]
(http://interactive.wsj.com/articles/SB948251421669359386.htm)

COMPETITION/MERGERS

AS TELECOMS MERGE AND CUT COSTS, CUSTOMER SERVICE IS OFTEN A CASUALTY
Issue: Mergers
What's the cost of telecom mergers? Well, it seems to be customer service.
During the past three years, mergers and acquisitions valued at more than
$500 billion have rearranged the telecommunications landscape. Phone
companies say the corporate customers ultimately benefit: The mergers bring
them the latest technology and provide one-stop shopping at the lowest
possible prices. But as companies squeeze costs out of their newly acquired
business, they usually layoff workers. Customer-service centers, often seen
as overlapping, are among the first operations to be pared. "The morale at
the company that is being acquired immediately goes down. Everyone starts
throwing their resume around," says Casey Letizia, communications manager
for one business customer, Credit Guard of America in Fort Lauderdale, Fla.
"At that point, we are orphans." "These telecom companies are killing us,"
says another business customer. "One domino falls and everything falls
apart." In slashing costs, telecommunications is doing what practically
every other business is doing. But in some other businesses -- say, a retail
store or bank -- the customers can manage by themselves if there are fewer
people around to help. In the technical world of telecom, a customer without
good customer service is helpless.
[SOURCE: Wall Street Journal (A1), AUTHOR: Rebecca Blumenstein & Stephanie
Mehta]
(http://interactive.wsj.com/articles/SB948244601326275848.htm)

COMPETITION IN VIDEO MARKETS
Issue: Competition
The FCC adopted its sixth annual report on competition in markets for the
delivery of video programming. This report will be submitted to Congress in
accordance with Section 628(g) of the Communications Act. The report
provides updated information on the status of competition in markets for the
delivery of video programming, discusses changes that have occurred in the
competitive environment over the last year, and describes barriers to
competition that continue to exist. The report finds that competitive
alternatives and consumer choices continue to develop but cable television
still is the dominant technology for the delivery of video programming to
consumers. As of June 1999, 82 percent of all subscribers to multichannel
video program distributor (MVPD) services received their programming from a
local franchised cable operator, compared to 85 percent a year earlier.
The link below includes major findings, links to Commissioners' statements
and a link to the actual report.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Cable/News_Releases/2000/nrcb0003.html)

DEVELOPMENTS IN INTERNATIONAL TELECOMMUNICATIONS MARKETS
Issue: International
As part of its ongoing effort to promote competition and liberalization in
the international telecommunications services market, the Commission today
issued its Report on International Telecommunications Markets for 1999
(http://www.fcc.gov/Bureaus/International/Reports/tmreport.pdf). The report,
which tracks several trends in international telecommunications markets
since the signing of the historic World Trade Organization Agreement on
Basic Telecommunications (WTO Agreement), is prepared annually at the
request of Senator Ernest F. Hollings (D-SC). The first such report was
issued on December 7, 1998.
Some of the developments highlighted in the report include: 1) Rates paid by
U.S. consumers for international service to most foreign destinations have
declined significantly since the WTO Agreement came into effect. 2) With the
surge in competition since the WTO, non-incumbent multinational carriers are
making inroads into the global telecom marketplace. 3) the top ten markets
measured by the number of telephone lines, the number of new entrants
increased from 1998 to 1999 in all ten markets except for one, which
remained unchanged. 4) The satellite services sector of the
telecommunications market is growing rapidly and continues to diversify its
service offerings.
Much more at the URL below. International Bureau Contact: Justin Connor at
(202) 418-1476.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/International/News_Releases/2000/nrin0001.html)

BIG FIRMS RUSH TO DOMINATE THE LATIN BROADBAND MARKET
Issue: Broadband
A dozen telecommunications firms, including such giants as AT&T and Spain's
Telefonica SA, are racing to build or buy broadband line that will carry
data to and throughout Latin America. From former state monopolies such as
Telefonos de Mexico SA to US-based start-ups, companies are racing to lay
fiber-optic cables and build wireless transmission towers in pursuit of
corporate clients eager to bypass local land-line networks. "Providing
Internet infrastructure will allow users to obtain the products and services
that they know about now but haven't yet been able to get," says David
Rutchik, head of corporate development for Diginet Americas, a private
broadband company. While the big incumbent have a natural advantage, some
new entrants have gained ground buying the operating rights for high-speed
lines.
[SOURCE: Wall Street Journal (A16), AUTHOR: Pamela Druckerman]
(http://interactive.wsj.com/articles/SB948236838661699250.htm)

ANTITRUST

MICROSOFT CHALLENGES ANTITRUST ARGUMENTS
Issue: Antitrust
Microsoft Corp. argued yesterday that the antitrust case against it is
fatally undermined by both legal precedent and the realities of the
ever-shifting technology market. In a 70-page brief, Microsoft took issue
with Judge Jackson's findings of fact, claiming that contrary to enjoying
monopoly power, Microsoft actually faces serious threats from such rivals as
Apple Computer and the Unix and Linux operating systems. Microsoft also
stated that the Justice Department's case was bereft of compelling evidence
and riddled with flimsy logic. In its brief, Microsoft lifted favorable
sentiments from Jackson's findings such as, "Microsoft did not actually
prevent users from obtaining and using" the Netscape browser, while leaving
out the unfavorable next few words, "although they tried to do as much in
1995." The Justice Department said that Microsoft's filing, "ignores the
court's findings of fact and distorts key legal precedents."
[SOURCE: Washington Post (E01), AUTHOR: David Segal]
(http://washingtonpost.com/wp-dyn/business/A61722-2000Jan18.html)

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

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone does
not represent the tone of the original articles. Headlines are compiled by
Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis (nancy( at )benton.org) -- we
welcome your comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)