January 2000

TELEVISION
A Place in the Credits (NYT)
On CBS News, Some of What You See Isn't There (NYT)
V-Chip Task Force Releases Updated Survey (FCC)

MERGERS (NOT *THE* MERGER)
Internet Assets Muddle MCI-Sprint Deal (USA)

WIRELESS
Vodafone Airtouch Sets Bevy Of Deals for Internet Use (WSJ)
In Europe, Media Companies Are Seeing Phones as the Future (Cyber)

ANTITRUST
Microsoft Prosecutors Favor Plan For Breakup (USA)

THE DEAL REVISITED
Consumer Groups Respond to AOL-Time Warner Deal (CME et al)
AOL Time Warner Will Blur Distinctions Between Web, TV (SJM)
U.S. Market for Broadband May Be Expanded by Deal (WSJ)
Will AT&T Be Next Partner--Or Rival (WP)
Merger May Produce Rival Microsoft Has Dreaded (NYT)
Where Does an 800-Pound Gorilla Sit? (USA)
...and links to so much more

TELEVISION

A PLACE IN THE CREDITS
Issue: Broadcasting/Diversity
[Op-Ed] Ridley applauds NBC and ABC for "respectively finishing one-two in
the propaganda war to win the hearts and minds of the audiences of color
they have for so long, so decidedly ignored." He also credits them for
giving
serious lip service to an issue they have only given lip service to before.
Under agreements with the NAACP, the networks have promised to hire more
persons of color both in front of and behind the camera. That shouldn't be
hard, Ridley says, since the networks have done such a bad job at it before.
"It's becoming obvious that [network executives'] gross unfamiliarity with
the issue of diversity is the problem to the answer." After the success of
such crossover shows as Cosby, Martin and Fresh Prince of Bel Air, network
executives failed to cast their nets wider and make sure that qualified
Blacks, Latinos and Asians of both sexes got interviews and earned jobs.
It's about being color-blind, but race-aware, Ridley concludes, but, for
Hollywood, maybe that's just too high a concept.
[SOURCE: New York Times (A27), AUTHOR: John Ridley, writer/producer]
(http://www.nytimes.com/yr/mo/day/oped/12ridl.html)

ON CBS NEWS, SOME OF WHAT YOU SEE ISN'T THERE
Issue: Journalism
Is it unethical to insert an image into a live broadcast, even if that image
is just for advertising? CBS News is using image insertion technology to
provide branding services for a variety of CBS programs. The most recent
example was the "CBS Evening News" broadcast live from Times Square on New
Year's Eve. A CBS News billboard ad seen behind Dan Rather was digitally
imported into the live CBS broadcast, covering over a Budweiser ad and NBC's
jumbo screen underneath the New Year's ball. Other CBS programs such as "The
Early Show" has been using the technology almost every day since the show's
debut on Nov 1. The news magazine "48 Hours" has also regularly used it. It
can even be found on the Dec. 30 and 31 Evening News, according to CBS news
executives. Steve Friedman, the executive producer of CBS' Early Show, said
that the practice did not press the boundaries of ethical guidelines for CBS
News. "It does not distort the content of the news," he said. Harry Jessell,
the editor of Broadcasting & Cable magazine, disagrees. "I think it does
raise some ethical questions for CBS," he said, "You would think that a TV
news organization would not tamper with video, especially live video.
Viewers should be able to rely on the fact that what they are seeing is
actually there."
[SOURCE: New York Times (A1), AUTHOR: Alex Kuczynski]
(http://www.nytimes.com/yr/mo/day/news/financial/cbs-digital.html)

V-CHIP TASK FORCE RELEASES UPDATED SURVEY
Issue: V-Chip
Last week marked the beginning of a new age for parents who want to protect
their children from television programming they deem objectionable. On
January 1, 2000, the "V-Chip" became required equipment in virtually all
television sets sold in the U.S. The V-Chip permits parents to program their
television sets to block out violent, sexual or other programming they don't
want their children to see. The V-Chip Task Force is releasing a survey
update. The updated survey finds, among other things, that: 1) The six
largest broadcast networks are currently encoding their programming; all
other broadcast networks surveyed are planning to encode. PBS and PAXNET,
which were planning to encode by Fall 1999, have slipped to April 2000 and
the year 2000, respectively. 2) Most of the largest basic cable networks are
already encoding their programming; most of those not encoding are exempt
news or sports networks. Comedy Central, which in the prior survey did not
expect to begin encoding until the second quarter of 2000, began encoding in
November 1999. Food Network, which was planning to encode by Fall 1999,
slipped to February 2000. 3) Four of the top five premium cable networks are
encoding their programming; the remaining network is planning to encode by
the first quarter of 2000. 4) All syndicators among the distributors of the
top 25 syndicated programs are currently encoding their programming.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/2000/nrmc0004.html)

MERGERS (NOT *THE* MERGER)

INTERNET ASSETS MUDDLE MCI-SPRINT DEAL
Issue: Mergers
MCI WorldCom's proposed $115 billion takeover of Sprint is not going
smoothly amid the federal review of the companies' combined Internet
networks. The FCC has requested more information on the Internet properties,

suggesting it has concerns. The deal would unite the number 2 and number 3
long-distance carriers. Additionally, the merger would combine MCI
WorldCom's UUnet division, the number 1 Internet backbone (with as much as
50% of worldwide traffic), with Sprint's network which carries up to 18%.
Critics say it would be anti-competitive for a firm to control so much
Internet traffic. Experts say the Justice Department and Federal
Communications Commission could require MCI WorldCom to spin off Sprint's
Internet assets. However Justice investigators worry whether such a
divestiture could be done smoothly, citing a previous MCI WorldCom spinoff
that sparked a lawsuit. Trustbusters are considering asking MCI WorldCom to
sell its UUnet network, which was purchased by WorldCom as a stand-alone
business and could be divested more cleanly.
[SOURCE: USA Today (3A), SOURCE: Paul Davidson]
(http://www.usatoday.com/usatonline/20000112/1836659s.htm)

WIRELESS

VODAFONE AIRTOUCH SETS BEVY OF DEALS FOR INTERNET USE
Issue: Wireless
The UK wireless giant Vodafone AirTouch said it has struck deals with
several high-tech companies, including Telefon L.M. Ericsson, Nokia and IBM
to offer Internet-based services on cellular phones. Additional, Sun
Microsystems agreed to provide the operating systems, while Infospace.com,
Charles Schwab and Travelocity.com, all agreed to provide content. "We're
going to work with the other partners to design what the portal will do,"
said Val Rahmani, a vice president of communications business at IBM, which
will oversee and manage the project. The computer maker estimates that by
2003 more people will connect to the Web via a wireless device than through
PCs.
[SOURCE: Wall Street Journal (A16), AUTHOR: Gautam Naik]
(http://interactive.wsj.com/articles/SB947625781523301112.htm)

IN EUROPE, MEDIA COMPANIES ARE SEEING PHONES AS THE FUTURE
Issue: International/Wireless
According to Forrester Research more than one out of every three people
across Western Europe has a mobile phone. The ubiquitous wireless
technologies compared to the relatively low level of Internet-connected
computers, has caused many companies to look to mobile phones as a way of
reaching a broader audience. "If you want to expand your market by moving
beyond people who buy newspapers to people who use other communications
media, the Web is probably not the right place to go to get lots and lots of
them. But cell phones are a perfect one," said Matthew Nordan, a senior
analyst with Forrester, who predicts that by 2004, 34 percent of Europeans
will regularly access the Internet from wireless devices. Many companies are
focusing on delivering pared down new services to cell phones. "Mobile
devices," said Neil Martinson, head of media relations for the BBC, "are
clearly the logical next step in terms of insuring within the U.K. that
people who pay the license fee to the BBC can get the BBC news when they
want, wherever they are."
[SOURCE: CyberTimes, AUTHOR: Eric Jenner]
(http://www.nytimes.com/library/tech/00/01/cyber/articles/12mobile.html)

ANTITRUST

MICROSOFT PROSECUTORS FAVOR PLAN FOR BREAKUP
Issue: Antitrust
Government lawyers favor splitting Microsoft into separate companies: one
for its Windows operating system, which runs 90% of PCs, and another for
software such as word processing, people familiar with the matter said
Tuesday. The government's approach would be offered during negotiations with

Microsoft that are under way in Chicago. It was not clear whether the
government would ask that Microsoft's Internet sites form a third company or

be folded into one of the two. Also uncertain was whether prosecutors would
insist that Microsoft strip its Internet browser from Windows.
[SOURCE: USA Today (1A), AUTHOR: Paul Davidson]
(http://www.usatoday.com/usatonline/20000112/1836774s.htm)

THE DEAL REVISITED

CONSUMER GROUPS RESPOND TO AOL-TIME WARNER DEAL
Issue: Mergers
In response to the AOL/Time Warner announcement, the national consumer
organizations Consumers Union, Consumer Federation of America, Media Access
Project, and Center for Media Education issued the following statement:

Consumers do not want to be beholden to a giant media-Internet dictatorship,
even if it promises to be a benevolent one. This is the sad result of the
Clinton Administration's weak competition policy that has allowed enormous
consolidations, which are likely to leave consumers with fewer choices,
limited competition, and higher prices.

We will immediately ask the Federal Communications Commission (FCC) to
initiate a rule-making proceeding to require open access to the Internet. We
will also ask the FCC to review its new ownership rules, which could enable
AOL, Time Warner, and AT&T to preserve anticompetitive ownership ties of
cable companies that serve more than half of all consumers and control the
most popular cable TV programming and Internet services.

We want the FCC to require open access, regardless of the promises made by
the players. Long-term diversity of views, choices, service, and competitive
prices require public responsibilities, not just wheeling and dealing among
the parties.

We have already complained to the FCC about the lack of an open access
policy and Time Warner's relationship with AT&T. The FCC has failed to
effectively sever that relationship through its ownership rules as it
reviews AT&T's acquisition of MediaOne. Adding AOL to the stock of services
and products associated with Time Warner makes the problem even worse.
Monday's announcement has spurred us to redouble our efforts to break the
AT&T-Time Warner relationship, including our continued opposition to the
AT&T-MediaOne deal.

AOL will immediately become the leader in high-speed Internet services. It
will accomplish this by buying the very cable wire that it once said
represented unfair competition to AOL. Up to today, AOL chairman Steve Case
has been an eloquent advocate for open Internet access generally and for
federal policy specifically. He has been absolutely right, and we would have
sincerely hoped that he would continue to be such an advocate in AOL's
acquisition of Time Warner.
[SOURCE: CME, MAP, CU, CFA]
(http://www.cme.org/press/000110pr.html)

AOL TIME WARNER WILL BLUR DISTINCTIONS BETWEEN WEB, TV
Issue: Mergers
While AOL is not planning on make Time Warner's library of movies available
online anytime soon, it is planning on bringing consumers new forms of
interactivity. This year AOL expects to launch AOLTV, a service that uses a
customized set-top box to let subscribers add elements of AOL to their TV
viewing. AOLTV is designed to integrate online activities with broadcasts,
displaying them side by side on the screen or layer one atop the other.
Viewers can write and read e-mail or browse AOL's online channels of
information while they watch TV. AOL also has a deal with Veon, Inc., a
company which makes software that can make online video streams interactive.
AOL intends to incorporate Veon's software into its as-yet unreleased
high-speed Internet service called AOL Plus, allowing online advertisers to
offer interactive commercials. And while Time Warner's library of movies
will not be online soon, "If we were to combine interactive technologies and
the kind of assets that a Time Warner has, you could obviously think that
there would be great video-on-demand opportunities," said Jonathan Sacks, a
senior AOL vice president and general manager of the AOL service.
[SOURCE: San Jose Mercury News, (Interactive Edition) AUTHOR: John Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/aol011200b.htm)

U.S. MARKET FOR BROADBAND MAY BE EXPANDED BY DEAL
Issue: Broadband
Experts predict that AOL's proposed merger with Time Warner will create
rich, interactive content that could boost consumer demand for broadband
Internet services. Currently, fewer than three million households have
either high-speed cable or DSL connections to the Internet. While demand
already exists among many consumers, broadband services are not yet
available in many locations. That is because high-speed Internet services -
either via cable or DSL technology -- are difficult and costly to deploy.
The Bell telephone companies have argued that regulations that prevents them
from offering long distance services have hurt their ability to roll
high-speed networks. It is likely that they will use the proposed merger to
push for relaxed rules on data services in order to compete against the new
mega-giant. Rep.
Billy Tauzin (R-LA) and Rep. John Dingell (D-MI) are sponsoring new
legislation that would allow the Bells to begin offering long-distance data
services immediately, without meeting the requirements laid out in the 1996
Telecommunications Act.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Stephanie Mehta and
Kathy Chen]
(http://interactive.wsj.com/articles/SB947632531169368427.htm)
See Also:
A RUSH TO PROVIDE HIGH-SPEED INTERNET ACCESS
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/financial/011200time-cable.html)

WILL AT&T BE NEXT PARTNER--OR RIVAL?
Issue: Merger
After the merger announcement America Online Chief Executive Steve Case and
Time Warner Chief Executive Gerald M. Levin called C. Michael Armstrong,
their counterpart at AT&T "to reiterate their interest in working closely
with AT&T." It is not known whether the call was out of courtesy or a sign
of a possible relationship. The difference could say a lot about the future
of the Internet, the television world and the telephone business. Some
analysts said AT&T and the new AOL Time Warner are not rivals but
prospective joint-venture partners. The mission of both are to provide the
spectrum of communications and entertainment services -- video-on-demand,
the Internet, local and long-distance telephone connections.
[SOURCE: Washington Post (E1), SOURCE: Peter S. Goodman]
(http://washingtonpost.com/wp-srv/WPlate/2000-01/12/161l-011200-idx.html)

MERGER MAY PRODUCE RIVAL MICROSOFT HAS DREADED
Issue:
While the AOL/Time Warmer merger will create a formable rival for Microsoft,
the deal could also figure into the court's calculations on sanctions
against Microsoft, if it loses the case. "This deal does underline the
possibilities for upheaval and transformation in this industry," William
Kovacic, a professor at the George Washington University law school, said.
"That could well make it more difficult for a judge to choose a remedy that
has dramatic, irreversible effects, like breaking up the company." Will
AOL's dramatic deal cause Microsoft to change its current Internet strategy?
Brad Chase, a Microsoft senior vice president says the AOL move just shows
what different paths the two companies are pursuing. "AOL is saying that its
primary anchor is going to be media," he said. "Our primary anchor is going
to be services and software distributed over the Internet that will help
consumers run their lives better, make them more productive."
[SOURCE: New York Times (C6), AUTHOR: Steve Lohr]
(http://www.nytimes.com/library/financial/011200time-soft.html)

WHERE DOES AN 800-POUND GORILLA SIT?
[Op-Ed] USA Today composed a list of what various newspapers and journalists

around the country are saying about the announced AOL Time Warner merger.
The list includes thoughts from Jesse Berst, editorial director, on ZDNet's
technology investment Web site; the Los Angeles Times; Davis Gardner, a
founder of The Motley Fool; Scott Rosenberg, a columnist in the online
magazine Salon; Dan Gillmor in the San Jose Mercury News; the Chicago
Tribune; the Boston Globe; the New York Times; the Cincinnati Post.
[SOURCE: USA Today (17A)]
(http://www.usatoday.com/usatonline/20000112/1836559s.htm)

See Also:
MEDIA MANIA
[SOURCE: New York Times (A27), AUTHOR: Paul Krugman]
(http://www.nytimes.com/library/opinion/krugman/011200krug.html)

DEAL MAY MAKE ONLINE MUSIC PAY
[SOURCE: Washington Post (E1), SOURCE: David Segal]
(http://washingtonpost.com/wp-srv/WPlate/2000-01/12/166l-011200-idx.html)

MERGED FIRM TO HAVE NEW LOOK
[SOURCE: Washington Post (E1), SOURCE: Ariana Eunjung Cha & Sharon Walsh]
(http://washingtonpost.com/wp-srv/WPlate/2000-01/12/160l-011200-idx.html)

YAHOO KEEPS MERGER OPTIONS OPEN
[SOURCE: Washington Post (E1), SOURCE: David Streitfeld]
(http://washingtonpost.com/wp-srv/WPlate/2000-01/12/171l-011200-idx.html)

WHERE WILL MEDIA'S NEW KING TAKE US?
[SOURCE: USA Today (1B), SOURCE: David Lieberman]
(http://www.usatoday.com/usatonline/20000112/1836692s.htm)

AOL TIME WARNER COULD GET PERSONAL
[SOURCE: USA Today (3D), SOURCE: Janet Kornblum]
(http://www.usatoday.com/usatonline/20000112/1836595s.htm)

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MERGER
Time Warner, AOL to Merge; Deal Creates a Multimedia Giant(WSJ)

DIGITAL DIVIDE
Silicon Valley Sprouts New Divide As Original Settlers
Are Left Out (WSJ)

EDTECH
Today's goal: Tech Training for Teachers (USA)

ARTS ONLINE
Art Discovers the Internet (USA)

ECOMMERCE
Government Figures Will Shed Little Light on Holiday Online Sales
(NYT)
Online Sales Spur Illegal Importing of Medicine to US (NYT)
GM and Ford in AOL and Yahoo Deals (NYT)
For-Profit Web Sites Give New Meaning to Campaign Financing (NYT)
Patents: More Weapons to Defend Internet Domain Names (NYT)

TELEVISION
FCC Chairman Plans Action to Resolve Industries' Standards for
Digital TV (WSJ)
Commission Seeks Comment on Sports Blackout and Program
Exclusivity Rules for Satellite (FCC)

ANTITRUST
Economists Debate Solution for Microsoft Case (NYT)

MERGER

TIME WARNER, AOL TO MERGE; DEAL CREATES A MULTIMEDIA GIANT
Issue: Mergers
Media and entertainment giant Time Warner and the nation's largest online
service provider America Online have announced a blockbuster merger valued
at $350 billion. AOL CEO Steve Case will be named chairman of the merged
company, renamed AOL Time Warner, while Time Warner Chairman and Chief
Executive Gerald Levin will be CEO. In joining a major media conglomerate
with a leading Internet company, the transaction is likely to have major
repercussions on both industries. This merger comes at a time when many big
media companies are struggling to stake out a place for themselves on the
Internet, and when Internet companies are struggling to find attractive
content to lure customers. The two companies have also announced new
marketing and promotional agreements that will immediately make Time Warner
content more available to AOL subscribers.
[SOURCE: Wall Street Journal (Interactive Edition), AUTHOR: Peter Gumbel]
(http://interactive.wsj.com/articles/SB947493902515323558.htm)

DIGITAL DIVIDE

SILICON VALLEY SPROUTS NEW DIVIDE AS ORIGINAL SETTLERS ARE LEFT OUT
Issue: Digital Divide
A report being released Monday by Joint Venture: Silicon Valley Network, a
private group backed by the region's businesses and governments, finds that
highly skilled workers are grabbing a disproportionate share of the area's
riches. "There are groups in the valley that just aren't participating in
the digital economy," said the report's author, Doug Henton. Some economists
say that lower-income residents are trapped on the wrong side of a "digital
divide," without the technological skills to take advantage of the region's
bounty. A recent poll found that only 46% of Bay Area residents with
household incomes less than $40,000 used the Internet, while 81% of people
with household incomes of more than $80,000 were Internet users. The divide
also is apparent in Silicon Valley schools. The graduation rate for
Asian-Americans is 97%; non-Hispanic whites, 86%; African-Americans, 59%;
and Hispanics, 57%.
[SOURCE: Wall Street Journal (A2), AUTHOR: Scott Thurm]
(http://interactive.wsj.com/articles/SB947455544121456254.htm)

EDTECH

TODAY'S GOAL: TECH TRAINING FOR TEACHERS
Issue: Ed-Tech
The CEO Forum on Education & Technology and Education Secretary
Richard Riley will today release a self-rating chart for teacher
colleges and universities intended to measure schools' ability to
prepare teachers for digital classrooms and wired student bodies. The
group also will challenge colleges to make that data public in six
months. By using the teacher-preparation School Technology and
Readiness (STaR) chart, colleges can assess their technology-training
programs. The chart will measure colleges' strategic plans and
funding, as well as the age of the computers and the amount of time
needed for technical support. The CEO Forum expects that colleges
will rate differently in many areas and that data collected will give
a national snapshot of the status of teacher technology training in
1,300 teaching colleges.
[SOURCE: USA Today (6D), AUTHOR: Karen Thomas]
(http://www.usatoday.com/usatonline/20000110/1830047s.htm)

ARTS ONLINE

ART DISCOVERS THE INTERNET
Issue: Internet
Numerous art Web sites have appeared in the past year, selling everything
from mass-produced posters to ''emerging'' artists to famous works. Some
sites sell directly to consumers while others are online auctions.
Sotheby's, eBay and the rest of the art world are betting that people will
be willing to pay for art online, as much as $125,000. The Web is turning
the highbrow art world into something of an ''art democracy'' -- accessible
to anyone with a credit card. The Internet is almost certain to greatly
expand the number of artists, consumers and the market itself. It is
difficult to say what percentage of art sales are already taking place on
the Net because sites rarely disclose buyers and sellers.
[SOURCE: USA Today (1A), AUTHOR: Maria Puente]
(http://www.usatoday.com/usatonline/20000110/1830221s.htm)

ECOMMERCE

GOVERNMENT FIGURES WILL SHED LITTLE LIGHT ON HOLIDAY ONLINE SALES
Issue: Ecommerce
The US Department of Commerce will announce estimates for December retail
sales on Thursday, putting a solid number on the 1999 holiday sales season.
Preholiday estimates ran from $4-$15 billion. Commerce is developing a means
of tracking Web sales, but it really isn't working at "Internet speed,"
Tedeschi reports. "We're all flying blind about the exact impact and breadth
of e-commerce," said William M. Daley, the secretary of commerce. "So we're
trying to respond quickly" to the need for more reliable data. But he added
that the Commerce Department "has had to move cautiously down this road."
"No one will remember if the private estimates are off," Daley said, "but
clearly people will have a right to be angry if the government is fooling
them." There are three major hurdles: 1) how to categorize retailers who
appear, disappear and change their product offerings quickly; 2) projecting
data from 2,000 respondents so it represents the entire e-commerce universe
presents analytical problems, and 3) there is the hurdle of actually
collecting the data. "The last thing in the world some of these e-tailers
want to do is bother with sending that information to us, and making sure
it's encrypted and protected," Sec Daley said.
[SOURCE: New York Times (C10), AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/00/01/cyber/commerce/10commerce.html)

ONLINE SALES SPUR ILLEGAL IMPORTING OF MEDICINE TO US
Issue: Health Online
The United States Customs Service seized 9,725 packages with prescription
drugs last year, about 4.5 times as many as in 1998, when they confiscated
2,145 packages. The number of pills and tablets impounded by the Customs
Service jumped to 1.9 million, from 760,720 in 1998. Intercepted drugs
included steroids, hormones, aphrodisiacs, impotency medications, anticancer
pills, painkillers and tranquilizers sent from Thailand, China, Mexico,
Switzerland and many other countries. The impounded shipments are probably
only a small fraction of what consumers are illegally buying from
fly-by-night Web sites, many of which offer to mail drugs in unmarked
envelopes with few questions asked, customs and health officials say.
Consumers may be turing to online drugstores based overseas for bargains,
illicit substances and prescriptions they are too embarrassed to seek from
their physicians.
[SOURCE: New York Times (A1), AUTHOR: Robert Pear]
(http://www.nytimes.com/library/tech/00/01/biztech/articles/10drug.html)

GM AND FORD IN AOL AND YAHOO DEALS
Issue: ECommerce
General Motors has linked up with America Online and Ford has entered a
similar deal with Yahoo in deals aimed at making it easier for automobile
customers to get information from car companies and for the car companies to
find customers. GM or Ford buyers who register through special pages on
America Online or Yahoo, respectively, will receive periodic messages from
the carmakers or their dealers -- everything from notices about changing the
oil to recall information to advertisements about rebates. And consumers can
go to the Web pages to look up information about cars sold at dealerships.
Additional alliances could be announced this week. "Exclusivity really isn't
the name of the game," said Mark Hogan, president of e-GM, GM's
electronic-commerce unit. "AOL is clearly the one that brings the most
eyeballs -- I'm sure Ford will come to AOL" in the future, he said.
[SOURCE: New York Times (A16), AUTHOR: Robyn Meredith]
(http://www.nytimes.com/library/tech/00/01/biztech/articles/10auto.html)
See Also:
FORD AND GM SIGN PACTS WITH INTERNET COMPANIES
[SOURCE: Wall Street Journal (A3), AUTHOR: Fara Warner, Kara Swisher and
Nick Wingfield]
(http://interactive.wsj.com/articles/SB9474493885504872.htm)

FOR-PROFIT WEB SITES GIVE NEW MEANING TO CAMPAIGN FINANCING
Issue: Political Discourse
A new group of Internet start-ups are hoping to make money in online
politics. One such company, Voter.com, plans to spend $70 million
advertising its site this year. Backers of these sites say the public needs
politics portals that will provide voters with information about all
candidates in one visit. Investors hope that this, along with the ability to
sell sharply targeted advertising to candidates and lobbying groups could
make the business model work. But some of these commercial political sites
are finding it harder to earn credibility with candidates and the public
than to raise millions of dollars in venture capital. A recent survey
conducted by George Washington University of likely voters who use the
Internet showed that about a quarter of respondents had searched for
information about political candidates. The study also found, however, that
the respondents were highly selective about which sources of online
political information they trusted. Andrew Blau, program director for the
Markle [not Marble] Foundation, said that nonprofit groups still have the
credibility advantage. "On the content side, certainly the dot-orgs have
nothing to be afraid of," Blau said. But they may need to move faster to
compete, he said, adding, "Their ability to be responsive is going to be
tested by these new players."
[SOURCE: New York Times (C4), AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/00/01/biztech/articles/10pols.html)

PATENTS: MORE WEAPONS TO DEFEND INTERNET DOMAIN NAMES
Issue: Internet
The group that issues domain registrations, the Internet Corporation
for Assigned Names and Numbers, began a new policy last week for
resolving disputes intended to ease the burden of proving ownership,
and to thwart cybersquatting. ICANN added state and common law
trademarks to the federally registered trademarks that already
qualify as precedent for determining ownership of a domain name.
Anyone registering a domain name will not be required to search the
trademark data bases of all 50 states. However, if a dispute arises,
a trademark registration will settle the issue in favor of the
trademark holder. It is difficult for a domain-name holder to
research existing state and common law trademarks without help. The
trademark database at Patent and Trademark Office contains only
federal trademarks, and at its World Wide Web site, the agency warns
that the database is incomplete, lacking applications or
registrations that are temporarily inactive. Furthermore, many states
have conflicting methods for keeping records. The alternative is to
pay commercial trademark databases to do the search for you. The new
policy states that until a domain-name dispute is resolved, the
Internet address in question will remain active.
[SOURCE: New York Times, AUTHOR: Sabra Chartrand]
(http://www.nytimes.com/library/tech/00/01/biztech/articles/10pate.html)

TELEVISION

FCC CHAIRMAN PLANS ACTION TO RESOLVE INDUSTRIES' STANDARDS FOR DIGITAL TV
Issue: DTV
Speaking at the Consumer Electronics Show in Las Vegas Friday, William E.
Kennard, chairman of the Federal Communications Commission, said the agency
is getting ready to end an impasse between TV makers and cable systems over
technical standards for digital television. The FCC is already drafting
digital TV compatibility standards for how new TVs will connect to cable
systems, he said, and added he will recommend their adoption in April if the
industries don't find a compromise before then. The move may avert a
cross-industry conflict that would impede sales of TVs that can receive and
display the digital signals U.S. broadcasters must have on the air by 2003.
[SOURCE: Wall Street Journal (Interactive Edition), AUTHOR: Evan Ramstad]
(http://interactive.wsj.com/articles/SB947288020591055448.htm)
See Also:
SPEECH: IPTV: FROM THE VAST WASTELAND TO THE VAST WONDERLAND
Chairman Kennard's 1/7/2000 remarks before the Consumer Electronics Show,
Las Vegas, Nevada: In the old world, services like television and cable and
telephone constituted different ways of delivering different products. The
conduit defined the content. But the rules where conduit defined content
have been rewritten by digitization. Conduit no longer defines content; the
lines of competition and regulation have been blurred, and new consumer
electronics devices are blended versions of the old. But in one area digital
technology has yet to fully take hold: And that's television. Televisions
are almost all still analog. Where broadcast digital TV is available, it is
not yet carried on cable. And if you buy a digital TV, it probably won't
work with your cable TV. To watch cable, you would have to watch it on your
old set, or employ a converter that dissipates much of the resolution
advantage of digital transmission. That's a little like riding on a train
and having to move from first class to coach class at the border.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/2000/spwek001.html)

COMMISSION SEEKS COMMENT ON SPORTS BLACKOUT AND PROGRAM
EXCLUSIVITY RULES FOR SATELLITE
Issue: Satellite
The Federal Communications Commission (FCC) today released a Notice of
Proposed Rule Making
(http://www.fcc.gov/Bureaus/Cable/Notices/2000/fcc00004.doc) seeking comment
on the implementation of regulations that would apply current cable rules
for network nonduplication, syndicated program exclusivity and sports
blackout to satellite carriers. The action is the second of several
proceedings to implement the Satellite Home Viewer Improvement Act (SHVIA)
that was enacted on November 29, 1999. This law, for the first time, permits
satellite carriers to transmit local television broadcast signals into local
markets.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/2000/nrmc0003.html)

ANTITRUST

ECONOMISTS DEBATE SOLUTION FOR MICROSOFT CASE
Issue: Antitrust
Prominent experts in the Microsoft antitrust case discussed some
proposed measures that US District Judge Thomas Penfield Jackson
might impose if the case reaches a penalty phase, at the American
Economic Association's annual conference. One penalty proposed by
Robert E. Hall, a Stanford University economist, was a multibillion-
dollar fine representing the amount that he estimated the Microsoft
Corp. tacked onto the price of its Windows software because of its
monopoly power. Steven J. Davis, a University of Chicago economist,
said Judge Jackson should let Microsoft keep "bundling" Internet
browsers with other software in its Windows operating system. Nearly
all the others who spoke here were on one side or the other in the
case.
[SOURCE: New York Times, AUTHOR: Louis Uchitelle]
(http://www.nytimes.com/library/tech/00/01/biztech/articles/10deba.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/)

DIGITAL DIVIDE
Dept. of Commerce Announces $12.5 Million in Grants and TIIAP Name
Change (NTIA)

TELEVISION
NBC Agrees to Build Jobs for Minorities (NYT)
McCain Urged F.C.C. Action On Issue Involving Supporter (NYT)
AOL's new screen name ends in TV (USA)

INTERNET
Domain Names Revoked Over Extra Character (Cyber)
Excite At Home Is Expected To Offer Free Web Access (WSJ)
Homework Help Sites (NYT)

ECOMMERCE
IRS Allows Tax-Free Ad Swaps on Web To Prevent Strangling of
Development Companies (WSJ)
In Retailing, Bricks Beat Bytes(WSJ)

TELECOMMUTING
OSHA Reverses Its Advisory (SJM)

DIGITAL DIVIDE

DEPT. OF COMMERCE ANNOUNCES $12.5 MILLION IN GRANTS AND TIIAP NAME CHANGE
Issue: Digital Divide
The Commerce Department announced yesterday approximately $12.5 million in
grants distributed through the recently renamed TIIAP program. Completed
applications for funds must be received by the NTIA no later than 9 p.m.
March 16. Daley also announced that the grant program formerly known as the
Telecommunications and Information Infrastructure Assistance Program
(TIIAP), has been renamed the Technology Opportunities Program (TOP) to
better reflect opportunities the many new technologies provide for economic
advancement. TOP is a highly-competitive, merit-based program that provides
start-up money for innovative, practical projects that use advanced
telecommunications and information technology. The program, as TIIAP, has
provided more than $135 million in matching grants since its inception in
1994. This year, the program is specifically encouraging projects developed
by smaller, locally-based organizations that both serve and represent
technologically underserved communities; projects that enhance the quality
and efficiency of services delivered through non-profit entities; and
cross-cutting projects involving partnerships among its four application
areas--community networking and services; lifelong learning and the arts;
health; and public safety.

NTIA will hold a series of free regional Technical Assistance Workshops to
discuss the TOP funding priorities, application requirements. The Technical
Assistance Workshops will be held on January 31, in New York, New York;
February 2, in Houston, Texas; and February 4, in Los Angeles, California.
Online registration is available at the NTIA Website. Assistant Secretary
Rohde will hold a special briefing for interested parties in Washington,
D.C. on January 19, 2000, at the Department of Commerce, Room 4830, at 2:00
p.m. The press is invited to attend. For more information, call (202)
482-2048, or e-mail to: top( at )ntia.doc.gov, or access NTIA's website at
www.ntia.doc.gov.
[SOURCE: NTIA]
www.ntia.doc.gov

TELEVISION

NBC AGREES TO BUILD JOBS FOR MINORITIES
Issue: Television/Minorities
Bob Wright, president of NBC, announced an agreement yesterday with a
coalition led by the National Association for the Advancement of Colored
People intended to generate jobs for minorities both at the network and on
shows it broadcasts. The agreement, which ends the association's threat to
boycott NBC programs, provides for internships, scholarship programs and a
guarantee that the network will increase its purchases from minority-owned
suppliers. NBC has also agreed to pay for a minority writer to be added to
the staff of every new network show that is renewed for a second year. Asked
whether the agreement was an indication that the network had probably passed
up minority talent in the past, Mr. Wright said, "My guess is yes." He said
that "We have to get out there with more compelling, broad-based material."
[SOURCE: New York Times (A12), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/national/nbc-jobs.html)

MCCAIN URGED F.C.C. ACTION ON ISSUE INVOLVING SUPPORTER
Issue: Political Discourse/ Television
Senator John McCain, a vocal advocate of campaign finance reform, has
recently demanded that the Federal Communications Commission take action in
a matter that ultimately benefited a major contributor. Mr. McCain wrote
letters to the FCC seeking a speedy vote on a television station license
swap in Pittsburgh that would enable Paxson Communications, a contributor to
McCain's presidential campaign, to buy a stations in the only big market
where it lacks one. The proposed transfers would eliminate one of the two
public television stations in Pittsburgh. Opponents of the station transfer
charged that, when it comes to the influence of money in politics, Mr.
McCain says one thing and does another. "I think he is hypocritical on the
issue of money and politics," said Jerold M. Starr, the co-chairman of the
Save Pittsburgh Public Television Campaign, which has been trying to block
the transfer of the public television station. "This is a clear case of him
responding to special pleadings of monied interests and it is harmful to the
public interests of this community," Mr. Starr said.
[SOURCE: New York Times (A1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/library/politics/camp/010600wh-gop-mccain.html)

AOL'S NEW SCREEN NAME ENDS IN TV
Issue: Television/Internet
America Online is teaming with electronics maker Philips for a set-top box
that weaves the online service into TV signals. AOL's announcement follows
Microsoft decision to collaborate with Thomson/RCA on several projects,
including a personal digital video recorder. Microsoft already owns WebTV.
The first AOLTV device, due to hit the market in late spring or early
summer, will connect to an antenna, cable or satellite feed, a phone line
and a TV set. A setup procedure configures the AOL log-on process and an
on-screen programming guide. Users, armed with either a remote control or a
keyboard, will be able to send instant messages to other online users. The
Thomson/Microsoft set-top box will offer WebTV's service and Internet
access, plus an on-screen programming guide and a hard disk for storing and
replaying video. Microsoft and AOL are logical partners for electronics
companies "because you need a content provider," says Steve Booth of
industry newsletter Television Digest.
[SOURCE: USA Today (3D), AUTHOR: Mike Snider]
(http://www.usatoday.com/usatonline/20000106/1820908s.htm)

INTERNET

DOMAIN NAMES REVOKED OVER EXTRA CHARACTER
Issue: Internet
ICANN, the body that oversees the Internet's address system said it was
revoking hundreds of new domain names because a software bug had enabled
people to claim addresses nearly identical to already established Web sites.
The more than 800 revoked addresses all contained an added a dash at the end
of an already registered address, which resulted in domain names such as
"www.Microsoft-.com," "www.yahoo-.com." ICANN decided to revoke the names
because of a long-standing policy against names that begin or end in a
character other than a numeral or letter. ICANN's president, Mike Roberts,
said that a mistake in the software was responsible for the registrations.
"This was something that shouldn't have been possible." Registrars of the
revoked names believe they should be able to keep the address for those who
have already hired Web hosting services and begun spending money on
establishing a Web presence.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/01/cyber/articles/06domain.html)

EXCITE AT HOME IS EXPECTED TO OFFER FREE WEB ACCESS
Issue: Internet
Excite At Home Corporation is expected to launch a free Web-access service
know as "FreeWorld" in which the company will give free Internet access to
users who connect over regular telephone lines. The dial-up service will be
paid for by revenue from banner ads, although it isn't expected to be
profitable at first. The giveaway will be restricted to Excite's
"narrowband" service, and the company will continue to charge about $40 a
month for its high-speed, cable broadband service, which it offers in
partnership with cable company owners. Excite At Home President George Bell
says the free service will attract more users, who might later move to the
more-lucrative broadband service. "The business model in the free ISP space
is definitely tough," he said. "But we think we have the most ability to
monetize that audience and also move them more quickly to broadband."
[SOURCE: Wall Street Journal, AUTHOR: Kara Swisher]
(http://interactive.wsj.com/articles/SB94711238431638516.htm)

HOMEWORK HELP SITES (OR, THE DOG ATE MY URL)
Issue: EdTech
Students today still rely on one another and parents for homework help, but
now they also have a huge information superhighway they can turn to. For
many students, the library encyclopedia has been replaced by search engines
like Yahooligans and Searchopolis. There are now numerous sites on the Net
designed specifically to aid students with their homework assignments. Some
sites rely on experts who respond by e-mail or chat with students, while
others work as clearinghouses by providing links to child-friendly
educational sites on various subjects. Partaking in a week's worth of fifth
grade homework assignments, the author found that homework sites are
frequently trustworthy and accurate -- with some providing amazingly speedy
responses. One downside, for parents and teachers, is that sites providing
an e-mail exchange with teachers or an online chat room with subject area
experts give a child the opportunity to ask a question and get the correct
answer before trying to answer it without assistance. The online experts
cannot determine who needs the help and who just wants a shortcut.
[SOURCE: New York Times, AUTHOR: Alice Keim]
(http://www.nytimes.com/library/tech/00/01/circuits/articles/06down.html)

ECOMMERCE

IRS ALLOWS TAX-FREE AD SWAPS ON WEB TO PREVENT STRANGLING OF DEVELOPMENT
COMPANIES
Issue: Internet
The Internal Revenue Service will allow companies to swap most Web-site ads
tax-free. These "barter exchanges," which arrange ad swaps where no cash
changes hands, won't have to report transactions with fair-market values of
less than $1. Most banner-ad swaps are believed to have a value lower than
$1. The move by the agency is intended to prevent long-standing rules of the
tax code from stanching the flow of electronic commerce. The IRS also
indicated that it may draft new reporting regulations for both barter
transactions and electronic commerce generally, and invites comment from
interested parties.
[SOURCE: Wall Street Journal, AUTHOR: Fowler W. Martin]
(http://interactive.wsj.com/articles/SB947116408323878695.htm)

IN RETAILING, BRICKS BEAT BYTES
Issue: E-commerce
[Op-Ed] Todd G. Buchholz, president of Victoria Capital LLC and author of
"Market Shock: 9 Economic and Social Upheavals That Will Shake Your
Financial Future--and What to Do About Them" comments on the persistence of
brick and mortar businesses despite the hype on online retailers. Shoppers
travel hundreds of miles to jam Potomac Mills, an outlet mall near Mount
Vernon. Wait a minute. And aren't old-fashioned retailers suffering because
of the Internet's largely tax-free status? Internet shopping makes up only
about 1% of retail purchases. Over the Christmas season, Internet sales
hardly dented those of brick-and-mortars. Moreover, the e-retailers fell
badly behind toward the end of the race. Around Dec. 13, when online
shoppers realized that some e-retailers couldn't deliver in time for
Christmas, they jumped in their cars. Online firms have forced their
fuddy-duddy competitors to cut costs and pass the savings on to the
consumer. Buchholz forecasts that retail establishments will split in two.
Remember the story of the three little pigs. The bricks held up when the
wolf came calling.
[SOURCE: Wall Street Journal, AUTHOR: Todd G. Buchholz]
(http://interactive.wsj.com/articles/SB947113718495773159.htm)

TELECOMMUTING

OSHA REVERSES ITS ADVISORY
Issue: Telecommuting
The federal Labor Department said Wednesday it needs to rethink how it will
apply federal safety standards to telecommuters' home offices. Yesterday,
Secretary of Labor Alexis M. Herman announced that OSHA is "withdrawing" the
advisory letter it sent to one company last November suggesting that
employers have wide-ranging responsibility for ensuring the safety of
telecommuters' homes. Many business groups had reacted with alarm to the
initial news of the OSHA advisory. Secretary Herman said she intends to
begin holding meetings with labor leaders and employers' groups to address
issues raised by employees working at home. She is also convening an
interagency working group, including the Department of Commerce and the
Small Business Administration, to examine the social and economic
implications of telecommuting.
[SOURCE: San Jose Mercury News, AUTHOR: Margaret Steen]
(http://www.mercurycenter.com/svtech/news/indepth/docs/osha010600.htm)

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

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/)

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

DIGITAL DIVIDE
U.S. Program Takes Technology to Underdeveloped Nations (Cybertimes)
A Family Bridges The Digital Divide (WP)

EDTECH
Fairfax Schools Seek More Computer Technicians (WP)

INTERNET
States to Consider Flurry of Internet Bills (Cyber)
Start-Up Pitches Free High-Speed Net Access (USA)
Indie Films Find the Web a Good Ally (Cyber)

RADIO
CNET Expected to Announce Major Deal With Radio Concern (WSJ)

CABLE
An Open Letter To WTTG-Fox Channel 5 Vice-President and General
manager, Laureen Ong(WP)

TELECOMMUTING
OSHA Covers At-Home Workers (WP)

DIGITAL DIVIDE

U.S. PROGRAM TAKES TECHNOLOGY TO UNDEVELOPED NATIONS
Issue: Digital Divide/International
The Global Technology Corps (www.globaltechcorps.org), a small division of
the State Department, is taking on the technology gap between third world
and developed countries. The program runs mostly on donated equipment and
volunteers. Working through embassies, in less than two years the small
staff has engaged in more than a dozen projects. In Poland, for example, two
volunteers from North Carolina spent two weeks training officials on how to
use technology to better plan for and respond to disasters. Neil Chase, a
journalism student in Northwestern University, worked in Honduras helping
the National Autonomous University of Honduras develop a plan for
integrating the Internet and computers into its journalism program by
writing a plan to bring the Internet both to the college and the country
through computers in public places. "Basically, I left them with a proposal
that said for a reasonable amount of money, you can get started. Here is how
you do it," Chase said. While the program has had little trouble finding
experts to volunteer their time, getting equipment is more of a challenge,
officials running the program said.
[SOURCE: CyberTimes, AUTHOR: Jerry Clausing]
(http://www.nytimes.com/library/tech/00/01/cyber/articles/04volunteers.html)

A FAMILY BRIDGES THE DIGITAL DIVIDE
Issue: Digital Divide
Bianca Floyd is credited with paving the way online for her family. Bianca's
orientation to computers in the 1980's led her from participation in
electronic bulletin boards to building Web sites and her own weekly column
in the Chronicle of Higher Education. But she has also translated her
experience into a benefit for her extended family - nine siblings, 18 nieces
and nephews. She buys computers at discount stores, performs the needed
upgrades and gives them to family who have subsequently found their own
outlets and interests on the Internet. Kathy Floyd, for example, is getting
her master's degree in organizational management via University of Phoenix
online classes.
[SOURCE: Washington Post (E1), AUTHOR: Jacqueline L. Salmon]
(http://washingtonpost.com/wp-srv/business/feed/a1899-2000jan4.htm)

EDTECH

FAIRFAX SCHOOLS SEEK MORE COMPUTER TECHNICIANS
Issue: EdTech
Under a proposed ruling Fairfax County schools would buy fewer classroom
computers and instead spend more money on hiring technical specialists to
keep the machines running and to assist teachers in using the technology.
The district's technology plan for the upcoming fiscal year calls for
purchasing only 2,700 new computers, compared with the 8,000 the school
system bought in the current fiscal year. The number of technology
specialists would increase from 41 to 114. The shift is deemed necessary by
the county because the increase in the number of school computers is
outpacing schools' ability to install and maintain the equipment and to
ensure that it is being properly used in classrooms, school officials said.
[SOURCE: Washington Post (B1), AUTHOR: Victoria Benning]
(http://washingtonpost.com/wp-srv/local/feed/a1934-2000jan4.htm)

INTERNET

STATES TO CONSIDER FLURRY OF INTERNET BILLS
Issue: Internet
When state legislators return to work in the coming weeks, Internet policy
debates are likely to take place in capitols across the country. The
Internet Alliance predicts that there will be more than 2,000 state-level
Internet-related bills in the coming session. Many of the debates will
mirror those that have been going on in Congress for the last year. "But at
the state level, they tend to move much faster," said Jeff Richards,
executive director of the Internet Alliance, a Washington-based trade
association. A top issue for many states will be discussing how to protect
their tax bases from electronic commerce. Another popular issue for both
state and federal lawmakers is Internet content, specifically attempts to
limit access to adult sites. "State legislatures often feel they want to
challenge federal lawmakers on constitutional issues," Richards said. "So if
there is a place in America where the content issue is debated, it tends to
be in the states. They want to push the envelope."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/01/cyber/articles/04capital.html)

START-UP PITCHES FREE HIGH-SPEED NET ACCESS
Issue: Internet/Broadband
Broadband Digital Group says it will offer the service known as digital
subscriber lines (DSL)--the fast Internet connection offered by phone
companies--for free. Such broadband services permit fluid video, better
audio and faster connections. They typically cost at least $40 a month
compared with $20 for regular Internet access. This marks the first free
high-speed Internet access in the growing but still unprofitable market for
free Internet hookups. The company expects to generate revenue by having
consumers fill out surveys and targeting them with personalized, pricier ads
in addition to showing TV-style ads. Consumers nationwide can register at
www.freedsl.com and the service is expected to launch in April.
[SOURCE: USA Today (1B), AUTHOR: Paul Davidson]
(http://www.usatoday.com/usatonline/20000104/1812059s.htm)

INDIE FILMS FIND THE WEB A GOOD ALLY
Issue: Internet/Film
Many independent filmmakers are hoping that the Web will allow them to
bypass Hollywood and reach viewers directly or drum up huge publicity, as
seen with "The Blair Witch Project." While most filmmakers will never see
the kind of success of "The Blair Witch Project," some experts predict that
the Internet will have a profound effect on the movie business. New digital
video technology and Internet distribution sharply reduce the cost of making
and distributing independent films. "As you lower the bar, more voices can
be heard and be profitable," said Ray Price, president of American Zoetrope,
the studio owned by Francis Ford Coppola. One way around the technical
limits of the Internet is to use it to sell videocassettes. "We're
sidestepping the whole movie business," said Sam Sokolow, a fledgling
filmmaker who has sold more than 800 copies of his first film on Amazon.com.
"I don't need Hollywood anymore to have 35 million people take a look."
[SOURCE: CyberTimes, AUTHOR: Andrew Pollack]
(http://www.nytimes.com/library/tech/00/01/biztech/articles/04indi.html)

RADIO

CNET EXPECTED TO ANNOUNCE MAJOR DEAL WITH RADIO CONCERN
Issue: Radio
CNet, a San Francisco-based technology news company, is expected to announce
a deal with AMFM to create an all-tech radio format designed to extend its
reach well beyond the Internet. The radio deal marks the latest chapter in
CNET's push to combine the Web with more traditional media outlets. CNET is
best-known for its network of Web sites that focus on technology news and
reviews. "The Internet part of the company has been a home run, because
growth has been on the side of Web businesses," said co-founder and chief
executive Halsey Minor. "But I have never been a purist . . . and have never
ruled out any medium."
[SOURCE: Wall Street Journal (), AUTHOR: Kara Swisher]
(http://interactive.wsj.com/articles/SB946946999852223389.htm)

"AN OPEN LETTER TO WTTG-FOX CHANNEL 5 VICE-PRESIDENT AND GENERAL MANAGER,
LAUREEN ONG"
Issue: Television
[Open Letter] In an open letter to WTTG-Fox Channel 5 Vice President and
General Manager Laureen Ong, Gary McCullum points out that Cox
Communications has not received permission from WTTG-Fox Channel-5 to carry
its local station on Cox's cable system. By law, Cox must have Fox's consent
to carry Fox Channel 5. "I Think it is absolutely shameful that your
Corporate Fox office would penalize our customers in Northern Virginia and
hold them hostage in order to satisfy their national business interests.
These interests are centered on Fox's unreasonable demand that every Cox
Cable system across the nation carry two new Fox channels regardless of what
the customers in those systems want. It is equally shameful that they have
rejected every reasonable and flexible Cox offer. We have repeatedly
requested an extension of the existing agreement so our customers would not
be penalized. Your Fox corporate officers have continues to say NO!"
McCullum sees an easy solution, "There is a simple remedy: Let's get
together and handle this for what it really is: A local issue. I want to
work with you directly instead of dealing with Fox corporate officers in Los
Angeles or New York who appear unconcerned about our local customers. You
Want carriage of Fox Sportsworld and Fx Movies on our digital line up and I
remain willing to commit to this in Northern Virginia, assuming these are
channels that out local customers want and are willing to pay for."
[SOURCE: Washington Post (C7), AUTHOR: Gary McCullum, vice president and
general manager of Cox Communications Northern Virginia]
(http://www.washingtonpost.com)
See Also:
FAIRFAX SUPERVISOR URGES COX, FOX TO TRY 'COOLING OFF'
[SOURCE: Washington Post (B1), AUTHOR: William Branigin & Peter Pae]
(http://washingtonpost.com/wp-dyn/metro/A654-2000Jan3.html)

TELECOMMUTING

OSHA COVERS AT-HOME WORKERS
Issue: Telecommuting
Companies are responsible for federal health and safety violations that
occur at the home work sites of telecommuters--employees that work out of
their homes--according to a Labor Department advisory. The decision covers
an estimated 19.6 million adult workers who regularly telecommute from their
homes, in addition to millions more who work at home occasionally. The
advisory, while not a proposed rule, is a declaration of existing policy the
agency deems already to be in effect. The decision means that employers are
responsible for equipping an employee has ergonomically correct furniture;
proper lighting, heating, cooling, and ventilation systems in the home
office; any needed training to comply with OSHA standards, including making
sure the home work space has emergency medical plans and a first-aid kit.
Gail Martin, executive director of the D.C.-based International Telework
Association, which promotes telecommuting, said she worries that the new
OSHA interpretation could pose "one more barrier" to telecommuting. "This is
nuts. They're trying to match a 30-year-old law with a year 2000 work
force," said Pat Cleary, vice president of human resources policies at the
National Association of Manufacturers.
[SOURCE: Washington Post (A1), AUTHOR: Frank Swoboda & Kirstin Downey]
(http://washingtonpost.com/wp-dyn/articles/A955-2000Jan3.html)

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