Communications-related Headlines for 2/2/2000
INTERNET
Clinton Backs Web Sales Taxes (WP)
Protected or locked out? Foes of copyright act say it
hampers Net's growth (USA)
Worries About Internet Crime Spark Legislative Blitz (CyberTimes)
WIRELESS
Speech: Wire Less Is More (FCC)
AOL, Microsoft, BellSouth Announce Wireless Deals (NYT)
TELEVISION/CABLE
Inside TV: Rising News Diversity Makes News (USA)
In Debates, Sponsors Can't Lose (WP)
INTERNATIONAL
Japan's Net Pioneer Kasamatsu Says the PC Gave Her Freedom (WSJ)
High-Tech Upstart Apparently Wins the Takeover Battle for
Hong Kong Telephone Giant (NYT)
The Internet Recharges Reformers in Korea (NYT)
BROADBAND
AOL, Time Warner to Open Cable Lines to Other ISPs in Move
to Curb Concerns (WSJ)
Consumer Groups Challenge AOL And AT&T's Open Access Promises
INTERNET
CLINTON BACKS WEB SALES TAXES
Issue: Internet
President Clinton told the nation's governors yesterday that they should be
allowed to tax items sold over the Internet. Although he stopped short of
advocating such a tax, the President said that the federal government should
not stand in the way if states decide to levy the same taxes on Internet
purchases that they do on purchases made in shops. Internet sales taxes are
controversial. Many traditional retailers believe that the tax-free status
of Internet purchases places them at a disadvantage in competition with
online retailers. Also, many states and municipalities fear a major loss of
revenue if they are not allowed to tax Internet purchases. Congress, in 1998
created a 3-year ban on any new taxes on Internet purchases.
[SOURCE: Washington Post (E4), AUTHOR: Charles Babington]
(http://www.washingtonpost.com/wp-dyn/articles/A46399-2000Feb28.html)
PROTECTED OR LOCKED OUT? FOES OF COPYRIGHT ACT SAY IT HAMPERS NET'S GROWTH
Issue: Intellectual Property
A growing number of technology and entertainment industry executives and
observers are questioning the Digital Millennium Copyright Act (DMCA),
signed by President Clinton in October 1998, which was intended to bring
copyright law into the 21st century. One of the most contentious aspects of
the law is a clause that makes it illegal to develop or use software and
hardware that can override copyright protection methods. In recent months,
several high-profile lawsuits have emerged as the entertainment industry has
started wielding the law as its main weapon against infringement on the
frontiers of the Web. ''The anti-circumvention clauses fundamentally change
the balance of copyright,'' says Alex Fowler of the Electronic Frontier
Foundation, which lobbied against those provisions. ''Now we're not just
talking about rights to the work, but about tying it to the system it is
displayed on, or plays on, or is distributed by. That's one level deeper
into control (than) copyright has been associated with." While the law's
detractors believe that it will only deter Internet innovation, the
recording industry sees it as necessary to encourage innovation. "You're not
going to get the new business models that technology enables if you didn't
have this protection against circumvention,'' says Cary Sherman, general
counsel to the Recording Industry Association of America (RIAA), which has
been involved in several suits.
[SOURCE: USAToday (3D), AUTHOR: Bruce Haring]
(http://www.usatoday.com/usatonline/20000229/1978310s.htm)
WORRIES ABOUT INTERNET CRIME SPARK LEGISLATIVE BLITZ
Issue: Privacy/Security
Lawmakers will open a new round of hearings addressing recent attacks on Web
sites today. Among the proposals being discussed by some House members is a
bill that would make it easier for companies to provide information to the
government about electronic attacks and security issues by exempting that
data from the Freedom of Information Act. The Federal Bureau of
Investigation is advocating the Cyberspace Security Act, which would set
legal standards under which law officers could gain access to codes used to
unscramble encrypted digital communications. Jim Dempsey, senior staff
counsel for the Center for Democracy and Technology, plans to tell a joint
House and Senate oversight panel that some of the proposed laws could
trample on the privacy of Internet users. Jim Dempsey, senior staff counsel
for the Center for Democracy and Technology, plans to tell a joint House and
Senate oversight panel that some of the proposed laws could trample on the
privacy of Internet users. "Not only do we fear that some bad laws will be
included," said Dempsey, "but that the privacy side of the equation will be
ignored."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/02/cyber/capital/29capital.html)
WIRELESS
SPEECH: WIRE LESS IS MORE
Issue: Wireless
Chairman Kennard's address to the Cellular Telecommunications Industry
Association: "It's time for us to think of wireless as the premier network
for the 21st century...And wireless is helping to bridge the digital divide.
From the bush country in Alaska to the Gila River Indian Reservation in
Arizona, wireless companies are bringing phone service to Americans in
remote locations. Many of whom never had wireline service...I believe to be
the most serious challenge facing your industry today: the need for more
spectrum...I believe that spectrum management should be at the very top of
your public policy agenda, because government can't prevent a spectrum
drought without you...
We also need to harness technology to head-off a spectrum drought. I believe
that software defined radios may hold the key.
They allow users to operate over wide areas of spectrum in efficient ways.
So I am announcing today that the Commission will begin a proceeding on this
promising technology."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/2000/spwek007.html)
AOL, MICROSOFT, BELLSOUTH ANNOUNCE WIRELESS DEALS
Issue: Wireless
Several companies, from BellSouth to Microsoft, announced partnership deals
with wireless technology companies on Monday. "Mobile data is finally
happening," said Seamus McAteer, director of Web technology strategies at
Jupiter Communications. "There have been false starts since 1991. Now the
necessary infrastructure is in place to free up developers from worrying
about interfaces." Microsoft has reportedly entered into a deal with
AirTouch Cellular and Nextel Communications to allow their customers to
access Internet information using Microsoft's online service. America Online
announced plans to develop a version of its instant messaging software for
use in Nokia mobile phones. And BellSouth will incorporate Sun Microsystems
Java technology in order to increase the functions of its two-way pagers and
other wireless devices. McAteer Jupiter forecasts that within five years, at
least 80 percent of the cellular market will include micro-browsers capable
of providing data services.
[SOURCE: New York Times (Online), AUTHOR: Jennifer Friedlin]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/29tsc-wireless.h
tml)
TELEVISION/CABLE
INSIDE TV: RISING NEWS DIVERSITY MAKES NEWS
Issue: Television/Diversity
Minorities and women were much more visible on the Big Three networks
evening news programs in 1999, according to a study released by the Center
for Media and Public Affairs. The study found that the proportion of stories
covered by minorities rose from 10% in 1998 to 14% in 1999. Women covered
24% of 1999's stories. Despite the increased diversity among on-air
reporters, 86% of stories were reported by whites and 76% by men. And of 50
top correspondents, only three (all male) were minorities, and eight were
women. ''Diversity in network news reporting progresses by fits and
starts,'' center president Robert Lichter says. ''But last year saw a big
step forward for both women and minorities.
[SOURCE: USAToday (4D), AUTHOR: Peter Johnson]
(http://www.usatoday.com/usatonline/20000229/1978335s.htm)
IN DEBATES, SPONSORS CAN'T LOSE
Issue Political Discourse
Time Warner recently announced that it would stop making large contributions
to political parties, saying it would devote more resources to political
coverage instead. The Democratic primary debate on Feb. 21 at the Apollo
Theater in Harlem is an example of the company's commitment. The debate also
provides an example of how a powerful media company can use such an event as
a marketing tool for its various products and brands. The debate was funded
by Time Warner, whose chief executive had a photo opportunity with both
candidates before the event. The moderator and questioners were all from the
company's news organizations. Time Warner journalists had exclusive access
to the hall. "It sounds like they are taking the high road all the way to
the bank," said Sheila Krumholz, research director at the Center for
Responsive Politics, which tracks corporate and individual campaign
contributions. One of the reasons that Time Warner is involved in the debate
business, is that its 24 hour news channel, CNN, has an insatiable need for
programming. Between CNN and MSNBC, NBC's 24-hour news channel, there have
been 17 live debates aired this primary season. For many, the Apollo debate
offers the prime example of the phenomenon known as synergy--a combining of
interests that ensures financial gain, seems ethically muddy. Time Warner
insists that its reasons are far nobler than pure profit. "We are a company
with journalism at its core and believe this creates a special obligation on
our part to widen and enrich the public conversation on issues that are
critical to our society's future," said Scott Miller, a Time Warner
spokesman. "Our sponsorship of these forums reflects that philosophy."
[SOURCE: Washington Post (E1), AUTHOR: Glenn Kessler]
(http://washingtonpost.com/wp-dyn/articles/A46384-2000Feb28.html)
INTERNATIONAL
HIGH-TECH UPSTART APPARENTLY WINS THE TAKEOVER BATTLE FOR HONG KONG
TELEPHONE GIANT
Issue: Mergers/International
The British parent company of Cable and Wireless HKT voted to accept a $35
billion stock-and-cash offer from Pacific Century CyberWorks, a Hong Kong
Internet upstart. Pacific Century, which is only nine months old, has no
experience in telecommunications and few tangible assets. But the board of
Cable and Wireless P.L.C.was apparently persuaded by Richard Li, the
company's 33-year-old founder who has emerged as one of Asia's Internet
stars. Analysts speculate that Pacific Century will carve up Cable and
Wireless HKT -- selling the less attractive local and long-distance phone
business to another phone company, while keeping the company's
Internet-related holdings. "This is kind of similar to AT& T buying up cable
assets in the United States," Greg Feldberg, a technology analyst at
Indosuez W. I. Carr Securities in Hong Kong said last week. "They see that
they need partnerships with local operators, so they feel more comfortable
owning stakes in companies."
[SOURCE: New York Times (B1), AUTHOR: Mark Landler With Andrew Ross Sorkin]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/29hong.html)
JAPAN'S NET PIONEER KASAMATSU SAYS THE PC GAVE HER FREEDOM
Issue: Media and Society
In Japan, a country in which the vast majority of women quit their job upon
marrying, Internet pioneers like Yumi Kasamatsu are beginning to usher in a
new era. In doing so, they are both taking advantage of the new technology
and also helping it to gain a valuable foothold. Kasamatsu, 38, runs a small
outsourcing firm that farms out office work via the Internet. She has used
her success as an entrepreneur to create a career for herself as a speaker
and writer, spreading the message that women can continue to work after
marriage, carving out interesting and fulfilling careers via the Net. The
time is ripe for Kasamatsu's message in Japan. Last year, women accounted
for 35% of Japan's 18 million Net users, and their numbers are growing
faster than those of men. Additionally, there is a growing need for services
that can be provided from the home, such as data entry and Website design.
There are still obstacles, such as winning respect and financing from
clients and bankers, who put a low value on home work. Additionally,
Internet access is very expensive in Japan. Despite all this, though, there
is a value that outweighs the hardships. As Kasamatsu puts it: "The PC gave
me money and independence."
[SOURCE: Wall Street Journal (B1) AUTHOR: Robert Guth]
(http://interactive.wsj.com/articles/SB95178042871071368.htm)
THE INTERNET RECHARGES REFORMERS IN KOREA
Issue: Political Discourse/International
In the last few months civic groups have been forcing major changes on a
long-static political class. Groups like Citizens' Coalition for Economic
Justice, lead Park ByungOk, differ from the traditional activism of radical
students or hard-line nationalist, because mostly led by middle-class people
with moderate politics, linked together by the Internet. On the Internet,
the critics are publishing reports on what they say are the politicians'
shady dealings, poor attendance records in the legislature or votes for
unpopular bills. Park's group's Internet home page, which averages 50,000
hits a day, has sometimes been so deluged that it has been briefly knocked
out of service. "Koreans," said Park, "have realized that politicians will
not bring about reforms of their own accord. Civic groups like ours are
creating an avenue for people to vent their frustrations and demand change."
[SOURCE: New York Times (A10), AUTHOR: Howard W. French]
(http://www.nytimes.com/library/tech/00/02/biztech/articles/29korea.html)
BROADBAND
AOL, TIME WARNER TO OPEN CABLE LINES TO OTHER ISPS IN MOVE TO CURB CONCERNS
Issue: Broadband
America Online and Time Warner are expected Tuesday to announce that, after
their merger is complete, they will open their cable lines to multiple
Internet service providers. This commitment to giving consumers a choice of
ISPs reflects some of AOL's original ideas regarding "open access." This
stance should go a long way in placating regulators and open access
proponents who might otherwise oppose the deal. Tuesday's expected
announcement will likely provide few details about the policy, leaving room
for speculation and skepticism. For the last year, AOL was one of the
leading champions of government-mandated open-access policy. However, at the
time that their merger with Time Warner, AOL backed off, saying that there
was no longer a need for government regulation. This reversal has consumer
groups wondering about the company's true commitment to open-access. Another
group that might have reason to be concerned about Tuesday's expected
announcement is Roadrunner, a cable Internet service provider in which Time
Warner has a stake. Currently, Time Warner has an agreement with Roadrunner
to use them as the sole ISP for their cable lines until the end of 2001.
[SOURCE: Wall Street Journal (A3) AUTHOR: Kathy Chen]
(http://interactive.wsj.com/articles/SB951794224907262201.htm)
CONSUMER GROUPS CHALLENGE AOL AND AT&T'S OPEN ACCESS PROMISES
Issue: Broadband/Mergers
Consumer Federation of America, Consumers Union, and the Media Access
Project released a detailed analysis of official filings on open access to
the broadband Internet by American Online (AOL) and AT&T in the U.S. and
abroad. The study demonstrates how AOL and AT&T have sharply reversed their
position on open access since announcing plans to purchase major cable
companies. The study is entitled _Who Do You Trust? AOL and AT&T... When
They Challenge the Cable Monopoly or AOL and AT&T... When They Become the
Cable Monopoly?_ Consumer groups are releasing the study as the heads of AOL
and Time Warner prepare to testify before Congress on February 29 about
their planned merger. The groups are asking lawmakers to probe whether
AOL/Time Warner or AT&T can be trusted to keep their promises to provide
open access without a legal obligation to do so.
[SOURCE: Consumer Federation of America]
(http://www.consumerfed.org/internetaccess/)
Executive Summary:
http://www.consumerfed.org/internetaccess/trustexecsumm.htm
Full Report (PDF): http://www.consumerfed.org/internetaccess/trust.pdf
See Also
Senate Judiciary Committee to Examine AOL/Time Warner Merger
[SOURCE: Center For Media Education]
(http://www.cme.org/press/000228_bbpr.html)
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Communications-related Headline
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