April 2000

DIGITAL DIVIDE
Advanced Telecommunications in Rural America (NTIA)
President Asks for Wider Internet Access (SJM)

INTERNET
Efforts to Keep the Web From Getting Too Personal (NYT)
Internet Access Charge Prohibition Act (House)

MERGERS
European Union to List Concerns About WorldCom-Sprint Merger (WSJ)

INTERNATIONAL
Syria Advances Cautiously Into the Online Age (WP)
E-Opportunity Abounds In China But So Do Hurdles For Online
Entrepreneurs (NYT)
French Government Withdraws An Amendment on Local Calls (WSJ)

ANTITRUST
State and Federal Lawyers Unite on Microsoft (NYT)

SATELLITES
Boeing Plans Deal to Provide In-flight Access to Live TV, Web (WSJ)

DIGITAL DIVIDE

ADVANCED TELECOMMUNICATIONS IN RURAL AMERICA
Issue: Universal Service
Americans in rural areas lag far behind those in urban areas in access to
advanced telecommunications services, according to a new government report
President Clinton released as part of his New Markets Tour. The advanced
services, commonly known as broadband services, provide high-speed Internet
access and will be a key to the nation's future economic growth. The report,
prepared jointly by the Commerce Department's National Telecommunications
and Information Administration and the Agriculture Department's Rural
Utilities Service, responds to a request by 10 U.S. Senators on the status
of broadband deployment in rural versus non-rural areas of the nation and
the potential for new technologies to serve rural areas and underscores the
call by President Clinton and Vice President Gore to bridge the digital
divide.
The report concluded that broadband services have been deployed in urban
areas more than in rural communities. It found that broadband over cable has
been deployed in more than 65 percent of all cities with populations over
250,000, and that broadband over the telephone network has been deployed in
56 percent of all cities with populations over 100,000, while less than five
percent of towns of 10,000 or less have access to either technology. The
primary reason for the slower deployment of advanced services in rural areas
is economic, the report said. The cost to serve a customer increases the
greater the distance among customers. The report recommends a number of
actions including fulfillment of the statutory goals under the
Telecommunications Act of 1996; the consideration of universal service
support mechanisms to support broadband services; and continued support and
expansion to such government initiatives as the E-rate program. The E-rate
program provides Internet access to schools and libraries at discounted
rates to ensure access to new technologies such as broadband services. In
addition, the report said that support for research on alternative
technologies will be crucial to the deployment of advanced services in rural
America. It also urged policymakers to implement regulatory reforms to
stimulate private sector investment in broadband
services.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/reports/ruralbb42600.pdf)

PRESIDENT ASKS FOR WIDER INTERNET ACCESS
Issue: Digital Divide
During his "New Market" tour stop in Whiteville, North Carolina, President
Clinton declared that high-speed Internet access is just as important to
rural communities as telephones, electricity and roads. The President also
highlighted the current disparity in access to broadband service between
cities and rural communities. According to White House statistics, broadband
access costs as much as $1,700 a month in places like Whiteville, while in
most cities the cost for the same service averages $200 a month. The
President praised an agreement between Bell South, GTE and Sprint that will
bring broadband to North Carolina within the next three years and make
dial-up access available within one year from every North Carolina local
telephone exchange carrier. Clinton called pleaded to other
telecommunications companies to make similar investments into rural
communities. The need for broadband in rural communities was emphasized even
further during Clinton's visit to Remote Data Systems (RDS). RDS President
Ben Frink told Clinton that the speed of RDS' Internet access is directly
related to RDS ability to grow. In this case, the slow speed of RDS'
Internet access has become RDS' primary barrier to growth.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/006553.htm)

INTERNET

EFFORTS TO KEEP THE WEB FROM GETTING TOO PERSONAL
Issue: Privacy
Several companies have sprung up to help people control over what sort of
information Web sites can gather about them. The companies, such as
Enonymous, PrivaSeek and Zero-Knowledge Systems, are calling themselves
"infomediaries" (if nothing else, the Internet has given us more cute names
for things than were available at any previous point in history). They work
by collecting information from a user and giving it out to other sites with
the individual's approval. I know what you are thinking-and you are not
alone: "The infomediaries are just more third parties who can change their
mind while holding your information, or who could be bought by somebody else
who has a different privacy policy," said Lauren Weinstein, co-founder of
People for Internet Responsibility. Meanwhile, the Washington-based World
Wide Web Consortium, which seeks to set up standards for the Internet, has
been working to create software that would automatically read a site's
privacy policy and compare it to the user's privacy preferences. The
initiative has come under fire recently for not addressing penalties for a
company breaching its stated policy. Also, there is no guarantee that
software companies will comply with the protocols needed to make the
initiative work.
[SOURCE: New York Times (E6) AUTHOR: Catherine Greenman]
(http://www.nytimes.com/library/tech/00/04/circuits/articles/27priv.html)

INTERNET ACCESS CHARGE PROHIBITION ACT
Issue: Internet/Legislation
The House Subcommittee on Telecommunications, Trade, and Consumer Protection
has scheduled a hearing on Wednesday, May 3, 2000 at 10:00 a.m. in 2123
Rayburn House Office Building. The hearing will focus on H.R. 4202, the
Internet Services Promotion Act of 2000 and H.R. 1291, the Internet Access
Charge Prohibition Act of 1999. Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

MERGERS

EUROPEAN UNION TO LIST CONCERNS ABOUT WORLDCOM-SPRINT MERGER
Issue: Merger
The European Commission repeated a warning that it is inclined to block MCI
WorldCom Inc.'s planned $129 billion acquisition of Sprint Corp. unless the
two U.S. companies agree to significant divestments. European Competition
Commissioner Mario Monti said the commission intended to mail the companies
a formal statement of objections in the next few days. The commission's
statement of objections is expected to demand the divestiture of the
Internet activities of either MCI WorldCom or Sprint, with a clear
preference for the divestiture of MCI WorldCom's UUNet Internet-services
unit. (Sprint already has offered to divest its Internet activities). When
MCI sought regulatory approval of its merger with WorldCom in 1998, the
commission forced MCI to sell its Internet business to Cable & Wireless.
Both Cable & Wireless and labor unions have accused MCI WorldCom of failing
to execute the previous divestiture properly.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Brandon Mitchener and
Philip Shiskin]
(http://interactive.wsj.com/articles/SB956761358144332676.htm)

INTERNATIONAL

SYRIA ADVANCES CAUTIOUSLY INTO THE ONLINE AGE
Issue: Internet
Syria is slowly being pushed online by a 35-year-old ophthalmologist who
happens to be the country's heir apparent. Bashar Assad, the eldest
surviving son of Presiden Hafez Assad, said recently in an interview that
while tradition may dictate some "guidelines" for controls on Internet
technologies, there is more to be gained than lost by being wired. "As a
point of principle, I would like everybody to be able to see everything. The
more you see, the more you improve. . . .Knowledge is limitless," he said.
"Personally, I try to look for self-discipline, self-regulation. Some other
people have their doubts." In addition to its Internet expansion, Syria also
has a fledgling cellular market. Two consortia, including Egyptian and
Lebanese investors, along with Ericcson and Siemens, are spending around $31
million to get things started. Currently the phones are priced out of the
reach of most Syrians-at around $1,200, but the companies say that prices
should drop soon.
[SOURCE: Washington Post (A1) AUTHOR: Howard Schneider
(http://www.washingtonpost.com/wp-dyn/articles/A21443-2000Apr26.html)

FRENCH GOVERNMENT WITHDRAWS AN AMENDMENT ON LOCAL CALLS
Issue: Telephony
The French government withdrew a legislative amendment that would have
opened France Telecom's monopoly of the "local loop" - the last stretch of
telephone cable linking users directly to the operator - to new competition
at the request of the Communist Party. The European Commission has said that
governments should open local loop competition by the beginning of next year
or that incumbent operators in markets where that doesn't take place could
face antitrust suits. A spokeswoman for the Industry Ministry said the
French government would either re-introduce its amendment, issue a
governmental decree on the issue, or follow-up on a recent decision by
France's competition council that requires France Telecom to allow rivals
more access to the local loop for high-speed Internet services. "Unless the
amendment is presented again soon, this is going to slow the development of
an Internet culture in France," said Jean-Philippe Valryck, a delegate with
the AFOPT, an association of French alternative telephone operators.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Kevin Delaney]
(http://interactive.wsj.com/articles/SB956783060666868776.htm)

E-OPPORTUNITY ABOUNDS IN CHINA BUT SO DO HURDLES FOR ONLINE ENTREPRENEURS
Issue: E-Commerce
Dozens of electronic commerce and technology companies active in China
came together Wednesday at the University of Pennsylvania's Wharton School
to discuss the state of e-commerce in China. The meeting comes as debate
heats up over China's admission to the World Trade Organization - a move
proponents say would help U.S. companies profit from China's rapid embrace
of the Internet - and as a record number of Chinese go online. The number of
Internet users on the mainland is estimated at 10 million today, up from
just 2 million in 1998. 30 million users are expected by 2003. Conference
participants spoke of the difficulties of doing business on the Internet in
China. Few Chinese can make online purchases because only a fraction have
credit or debit cards. Dot-coms are also concerned about the role of the
Chinese government, they would like to establish clearer rules tax
obligations for e-commerce transactions.
[SOURCE: USAToday (3B), AUTHOR: James Cox]
(http://www.usatoday.com/usatonline/20000427/2204309s.htm)

ANTITRUST

STATE AND FEDERAL LAWYERS UNITE ON MICROSOFT
Issue: Antitrust
The federal government and the states that are partners in the antitrust
suit against Microsoft agreed today to file a joint proposal on remedies in
the case and back a plan to break Microsoft into two companies, officials
said. While a majority of the 19 state attorneys general involved have
signed onto the plan, but that a few holdouts remained. "There may well be a
minority opinion offered," one senior official said. "But what it will be
and how it will be expressed, we don't know yet." The joint state-federal
plan calls for breaking Microsoft roughly in half, with one-half would be
the operating-system company, the other would hold everything else. The
proposal also includes a range of interim restrictions on Microsoft's
conduct, included is a plan to publish a uniform price list for Windows and
to
give other companies free access to the software interface codes for
Windows.
[SOURCE: New York Times (A1), AUTHOR: Joel Brinkley]
(http://www.nytimes.com/library/tech/00/04/biztech/articles/27soft.html)
See Also:
PRIVATE SUITS AGAINST MICROSOFT ORDERED BY JUDGES TO BE HANDLED BY ONE COURT
[SOURCE: Wall Street Journal Interactive, AUTHOR: Ted Bridis]
(http://interactive.wsj.com/articles/SB956791498142714628.htm)

SATELLITES

BOEING PLANS DEAL TO PROVIDE INFLIGHT ACCESS TO LIVE TV, WEB
Issue: Satellites
Boeing has joined forces with units of Loral Space & Communications Ltd.,
Italy's Finmeccanica SpA and Japan's Mitsubishi group to create an
inflight-communications venture that will provide airline passengers with
live television and Internet access. CNN and CNBC are the proposed content
providers for the venture. The aim is to provide high-speed Internet
connections and e-mail at prices lower than what passengers are paying to
use the current generation of telephones installed throughout airliner
cabins. This venture is a major step for Boeing towards its goal of becoming
a leader in providing two-way, satellite-based broadband services to
commercial and corporate aircraft.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Andy Pasztor and Jeff
Cole]
(http://interactive.wsj.com/articles/SB956790743554374175.htm)

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

(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), Harry Chauss (HARRY( 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/)

DIGITAL DIVIDE
Internet Access Beyond Reach Of Most In Vietnam (USA)

ANTITRUST
U.S. Hoping 2 Microsoft Monopolies Are Gentler Than One(NYT)

CABLE
FCC Will Approve AT&T Acquisition Of MediaOne if Some Assets Are
Sold (WSJ)
Cablevision Moves to Add to Its New York Customers (NYT)

INTERNET
E-Business Service Providers Help Smaller Firms Open Internet
Stores (WSJ)

WIRELESS
Britain's Happy Problem: How to Spend $30 Billion Cell Phone
Windfall (WP)
Nextel Enters Wireless Net (WP)
Italy Expected to Make Huge Increase In Wireless License Costs
Before Sale (WSJ)

DIGITAL DIVIDE

INTERNET ACCESS BEYOND REACH OF MOST IN VIETNAM
Issue: Digital Divide
Phuong Le, 25, a resident of Ho Chi Minh City is teaching herself how to
build Web sites at night. But, Phuong's job as a labor practices manager for
Nike places her among a select few in Viet Nam - 40,000 - who have the
income for Internet access. The cost of Internet access surpasses the income
of most of Viet Nam's 78 million residents, whose average per capita yearly
income is $360. "The Internet is not in Vietnam," says Brian Quinn of the
Harvard Institute for International Development, a partner in the Fulbright
Economics Teaching Program at Vietnam National University. Viet Nam's
telecommunications sector is state controlled. Currently, the infrastructure
pipes needed to carry information do not exist in the country. "Vietnam is
rapidly losing any competitive advantage to Thailand, Malaysia, Singapore,
Indonesia and China, who are embracing information technologies to market
their products to a worldwide export marketplace," says Radne Bryant, IBM's
Vietnam general manager.
[SOURCE: USA TODAY (3B), AUTHOR: Julie Schmit]
(http://www.usatoday.com/usatonline/20000425/2194974s.htm)

ANTITRUST

U.S. HOPING 2 MICROSOFT MONOPOLIES ARE GENTLER THAN ONE
Issue: Antitrust
A tentative proposal from the Justice Department that is expected to be
submitted to a federal judge later this week, highlights the government's
belief that the software giant would create a more open, competitive
environment if broken into two separate companies. The proposal would force
the Microsoft Corporation to break off its industry-standard Windows
operating system into one company, and its Office applications software
business and most other operations into a second company. David Yoffie, a
professor at Harvard Business School, explained: "What the government seems
to be trying to do is change the incentives for both monopoly products,
Windows and Office. If they are split up, you would have more of a duopoly
structure with the same kind of tension that exists between Microsoft and
Intel, which is healthy." The proposed split-up would address the frequent
complaints from other software companies that Microsoft gives its own
applications programmers preferred access to the inner workings of Windows
technology.
[SOURCE: New York Times (B1), AUTHOR: Steve Lohr]
(http://www.nytimes.com/library/tech/00/04/biztech/articles/25split.html)
See Also:
WHITE HOUSE WILL BE BRIEFED ON PLAN TO BREAK UP MICROSOFT
[SOURCE: Wall Street Journal Interactive, AUTHOR: Bob Davis and Ted Bridis]
(http://interactive.wsj.com/articles/SB956616890740914396.htm)

CABLE

FCC WILL APPROVE AT&T ACQUISITION OF MEDIAONE IF SOME ASSETS ARE SOLD
Issue: Merger
A Federal Communications Commission staff report recommends approving AT&T
Corp.'s acquisition of cable-TV concern MediaOne Inc. on the conditions that
it shed its programming units -- Liberty Media and Rainbow Media Sports
Holdings Inc. -- or sell MediaOne's 25.5% stake in Time Warner
Entertainment. These conditions are a result of FCC staff members concerns
that the MediaOne deal would give AT&T too much control over the cable and
satellite-television markets. AT&T had bought a number of cable companies,
betting that cable lines will be a key conduit for high-speed Internet
access and local phone service, and has sought to convince regulators that
it won't control too much of the market after the MediaOne deal closes. At
minimum, AT&T had hoped to be able to choose which assets to sell. The FCC
last year ruled that one company may serve no more than 30% of all U.S.
cable and satellite-TV households. According to the FCC, AT&T and MediaOne
together would command a 41% share of U.S. households. AT&T has argued that
neither Time Warner Entertainment nor Liberty Media should be counted toward
its share of the market, because it doesn't manage or control them.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Kathy Chen]
(http://interactive.wsj.com/articles/SB956617091216628788.htm)

CABLEVISION MOVES TO ADD TO ITS NEW YORK CUSTOMERS
Issue: Cable
Cablevision Systems Corporation has obtained an additional 125,500 customers
in the New York metropolitan region in a $1.1 billion deal that will make it
the nation's largest local cable provide. In recent months, the company has
begun telephone service over cable lines and expanded its high-speed
Internet service over cable modems. In this latest deal, the company agreed
to trade its 357,000 Boston area subscribers to Media One, which is to be
acquired by AT&T, for 125,500 subscribers in the northern suburbs of New
York City, say officials. This deal along with others planed deals would
give Cablevision 2.9 million customers in its remaining regional cluster,
which includes New York, New Jersey and Connecticut. "The New York strategy
has to do with building a digital platform, and that digital platform will
provide a full array of telecommunications, and that is everything from
phone to Internet to video," James L. Dolan, president of Cablevision.
[SOURCE: New York Times (A23), AUTHOR: Jayson Blair]
(http://www.nytimes.com/yr/mo/day/news/national/regional/ny-cablevision.html
)

E-COMMERCE

E-BUSINESS SERVICE PROVIDERS HELP SMALLER FIRMS OPEN INTERNET STORES
Issue: E-Commerce
There is a growing competition between specialized Web sites that help
smaller companies get online. The sites, called e-business service
providers, which began appearing about two years ago, host Web pages and
provide e-commerce tools and related services -- often without charge.
E-commerce specialists say small companies usually have little to lose from
taking up the offers. "It's kind of a trial-and-error process, and why spend
money if you don't have to?" says Kneko Burney, an e-commerce specialist at
Reed Elsevier's Cahners In-Stat unit in Scottsdale, Ariz. s. Burney says
nine of the 19 e-business providers that she tracks offer free service,
while hiring Web-design consultants can easily cost a firm more than
$10,000.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Jeffrey A. Tannenbaum]
(http://interactive.wsj.com/articles/SB956617207921473448.htm)

WIRELESS

NEXTEL ENTERS WIRELESS NET
Issue: Wireless
Nextel, the mobile phone company that is best known for combining two-way
radios with cell phones, is going to begin offering data services, including
Internet access on its phones. While the clamor over the wireless Internet
is not exactly new, it has generally been focused on consumers, rather than
businesses. Nextel, whose bread and butter is business, is on the leading
edge of what is going to be a very big market. Both Sprint and Bell Atlantic
(now Verizon), are investigating the best ways to get into the business
market, and AT&T plans to offer a consumer-oriented wireless Internet
service in the next few months. While wireless companies are hopeful about
the business market, suggesting that linking workers in the field with
office databases will be a real boon to businesses everywhere, they are also
aware of the hurdles they will have to go over to sell their new products,
for instance, security . "Many [information technology] executives have not
been willing to provide the ability for their employees to have access
through firewalls," said Howard Waterman, a spokesman for Verizon Wireless.
"As that concern eases, I think you'll see many more business customers
having that access."
[SOURCE: Washington Post (E3), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A6694-2000Apr24.html)

BRITAIN'S HAPPY PROBLEM: HOW TO SPEND $30 BILLION CELL PHONE WINDFALL
Issue: Wireless
The British government is auctioning off the rights to spectrum set aside
for the next generation of cell phones. Companies eager to be one of the
five to win that very lucrative right have sent the bidding up to an
astounding $30 billion. Now the question facing Tony Blair's government is
what to do with the money. The ideas, as one can imagine, are rather varied.
Some believe that the money should simply be used to pay off the country's
staggering debt. Others say that it should be returned to British subjects
in the form of a tax cut (it would be a nice one-taxes could be cut by 10
percent without affecting the treasury). Another idea is to take the money
and put it into repairing the country's decaying infrastructure, which is so
out of date and beleaguered that there is some talk of charging a toll on
any car entering a city.
[SOURCE: Washington Post (A19), AUTHOR: T. R. Reid]
(http://washingtonpost.com/wp-dyn/articles/A8343-2000Apr24.html)

ITALY EXPECTED TO MAKE HUGE INCREASE IN WIRELESS LICENSE COSTS BEFORE SALE
Issue: Wireless
Impressed by Britain's runaway auction for wireless licenses, Italy's Prime
Minister-designate Giuliano Amato is expected to raise the price of the five
Italian licenses to be awarded this summer to an estimated $14.06 billion
from the $1.13 billion currently planned. The windfall from these licenses,
which allow wireless Web surfing, would go to fund economic incentives and
education projects designed to spur Italy's technological advancement,
without tapping voters' pockets. Officials at Italian mobile-phone companies
have responded that raising the license fees would hurt rather than spur
Italy's technological advancement, by diverting their money away from
infrastructure investments and thereby producing a low-quality network as a
result.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Yaroslav Trofimov]
(http://interactive.wsj.com/articles/SB95660752577736534.htm)
--------------------------------------------------------------

(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/)

INTERNET
Government Begins Protecting Children From Web Site Queries (NYT)
Think Globally, Click Locally (WP)

COMPETITION
Price War, Legal Concerns Squeeze European Internet-Service
Providers (WSJ)
Tiny Northpoint Technology Pushes Satellite Giants to Fight (WSJ)

MERGERS
AT&T Pledges Not to Influence The Programming at MediaOne (WSJ)
MCI WorldCom Eyes British Wireless Phone Company Orange (USA)

INTELLECTUAL PROPERTY
Lawsuit Targets Music Swap (USA)

FREE SPEECH
Regulators Confront Web Role in Politics (NYT)
Suit Against Anonymous Pest Revives Online Speech Law (NYT)

INTERNET

GOVERNMENT BEGINS PROTECTING CHILDREN FROM WEB SITE QUERIES
Issue: Privacy
Federal Trade Commission employees, working from the agency's
state-of-the-art computer lab, are prepared to begin making "sweeps" or
peruse random Web sites to ensure they are complying with a child privacy
law that goes into effect today. The 1998 Children's Online Privacy
Protection Act was enacted after federal officials found that only 1 percent
of companies were asking for parental permission when asking children
questions while they played video games online or researched book reports.
"It's a high priority for the agency," said Loren G. Thompson, a lawyer with
the FTC. "The bottom line is we will be enforcing this law and we will be
looking at violators closely." The commission is looking to make sure that
sites post information for how parents can grant their permission, Thompson
said. Each child that e-mails or posts identifiable information like a name
and address -- without a parent's say so -- could cost a Web site operator
$11,000, she added.
[SOURCE: New York Times (Online), AUTHOR: The Associated Press]
(http://www.nytimes.com/library/tech/00/04/biztech/articles/21child-privacy.
html)

THINK GLOBALLY, CLICK LOCALLY
Issue: Nonprofits/Internet
The Web site Helping.org, connects people with causes they care about and
helps them provide support, by either contributing money or volunteering.
The 'Volunteer Here' and 'Charity Search' sections let users search by
geographic location or other criteria to find the organizations best-matched
to their interests. The Web site, which is a joint venture between the AOL
Foundation and such nonprofits as the American Red Cross and the National
Urban League (and the Benton Foundation), also offers help for nonprofits,
with links to 'Resources for Nonprofits' and 'Bridging the Digital Divide.'
[SOURCE: Washington Post (E15), AUTHOR: Gabriel Goldberg]
(http://www.washingtonpost.com/wp-dyn/articles/A51791-2000Apr20.html)

COMPETITION

PRICE WAR, LEGAL CONCERNS SQUEEZE EUROPEAN INTERNET-SERVICE PROVIDERS
Issue: Competition
European Internet-service providers are engaged in a brutal price war at the
same time they are struggling to safeguard themselves against a growing
threat of legal action. The competition is especially hot in the U.K., where
ISP's are abandoning Internet-access charges, including call charges, which
had been a key source of revenue, and introducing free or unmetered access.
In other European countries, subscription prices are being slashed. This
wave of competition may force many of the smaller European ISP's out of
business. "Within a few years, the European Internet-access market will be
dominated by a small group of multinationals," says Jupiter Communications
analyst Olivier Beauvillain. Adding to the ISP's administrative costs is a
recent court settlement that dealt with defamatory postings. Demon Internet,
a U.K. ISP owned by Thus PLC, paid a total of $386,700 this month to
Laurence Godfrey, a physicist who claimed that Demon had ignored several
requests to remove two anonymous postings he said defamed him. Many ISPs
fear this court ruling means they will now have to police their bulletin
boards for offensive comments, as well as pay much closer attention to
incoming e-mail messages, which may contain complaints about defamatory
postings. That presents a particular problem for one ISP, which receives up
to 10,000 e-mails a week. "The Demon case shows how easy it is for people to
contact you and how hard it is to keep up with the correspondence," says Mr.
Gregory from Totalise. "We no longer say 'do not hesitate to write to us
again' at the end of each reply."
[SOURCE: Wall Street Journal Interactive, AUTHOR: David Pringle]
(http://interactive.wsj.com/articles/SB956248177444089259.htm)

TINY NORTHPOINT TECHNOLOGY PUSHES SATELLITE GIANTS TO FIGHT
Issue: Satellites
It has three employees, limited capital and unproven technology but
Northpoint Technology Ltd. seems to have stirred up quite a scare among the
giants of the satellite industry. Northpoint isn't a satellite company,
instead, its technology employs ground-based transmitters that get more
usage from the spectrum used by satellite-TV providers, ostensibly without
interfering with the satellite-TV providers signals. This would allow
Northpoint to offer consumers at least 96 channels of programming at rates
cheaper than most cable and satellite-TV packages currently on the market.
In response, DirecTV Inc., Boeing Co., Loral Space & Communications Ltd.,
AT&T, and other industry's heavyweights are attempting to convince
regulators and lawmakers that Northpoint will encroach on the airwaves
currently occupied by them, causing, "ruinous interference and serious
disruption of services to consumers." But Northpoint has won surprising
backing from regulators and lawmakers, in part because of its promise of
fresh competition. A clause in a satellite-TV bill passed last year requires
the FCC to decide on applications involving Northpoint-type technology by
the end of the year, a time frame that some satellite-industry executives
contend is unusually quick. The FCC is leaning toward granting approval as
early as this month people close to the review say.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Kathy Chen]
(http://interactive.wsj.com/articles/SB956270509342817443.htm)

MERGERS

AT&T PLEDGES NOT TO INFLUENCE THE PROGRAMMING AT MEDIAONE
Issue: Mergers
AT&T made a pledge in a filing with the Federal Communications Commission
that it won't attempt to influence programming at the cable-TV companies it
is acquiring or partially owns. This represents the company's latest effort
to retain a 25.5% minority stake in Time Warner Entertainment, which it
would acquire as part of its purchase of cable giant MediaOne Inc. Time
Warner Entertainment includes Road Runner, a high-speed Internet-access
service that works over cable lines. AT&T is said to want to retain its
interest in Time Warner Entertainment to help bolster its negotiating
position for a pact with Time Warner and America Online to deliver local
phone services over Time Warner's cable lines. With the filing, regulatory
approval of the AT&T-MediaOne deal could be imminent.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Rebecca Blumenstein]
(http://interactive.wsj.com/articles/SB956264448760876229.htm)

MCI WORLDCOM EYES BRITISH WIRELESS PHONE COMPANY ORANGE
Issue: Wireless
MCI WorldCom is thinking about buying Britain's number-three wireless
company, Orange, say people in the know. The potential acquisition wouldn't
really be in full gear until after WorldCom's $120 billion deal to buy
Sprint goes through sometime this summer. WorldCom might not find that
buying Orange is easy, or cheap -- the company could cost them upwards of
$40 billion. France Telecom also wants Orange and has said that a bidding
war is not out of the question. Additionally, NTT DoCoMo of Japan and KPN of
the Netherlands, BellSouth, Telefonica of Spain and Telecom Italia seem to
be interested in joining what could end up being the Wrestlemania of telecom
mergers.
[SOURCE: USA Today (1B), AUTHOR: Thor Valdmanis]
(http://www.usatoday.com/usatonline/20000421/2187301s.htm)

INTELLECTUAL PROPERTY

LAWSUIT TARGETS MUSIC SWAP
Issue: Intellectual Property
Last week rock group Metallica named the popular music-swapping Web site,
Napster, and three universities - Yale, the University of Indiana and the
University of Southern California - in a lawsuit alleging that they violated
the speed-metal band's copyrights by allowing students to share their music
without paying for it. Last Friday, Yale blocked the site and Indiana
followed this Thursday. Metallica's lawyer, Howard King, says that by
blocking the site, Yale and Indiana will be dropped from the suit and that
he is "guardedly optimistic" that USC will also block the site. The band
feels that it's doing more than just banging its head against the wall with
the suit. "We're not sitting here saying we're against making music
available on the Internet," said Metallica's drummer, Lars Ulrich. "We want
to be the people who decide when and where we download the music and who we
make the music available to."
[SOURCE: USA Today (3B), AUTHOR: Keith L. Alexander]
(http://www.usatoday.com/usatonline/20000421/2187252s.htm)
See Also:
INDIANA UNIVERSITY BANS NAPSTER ON LEGAL CONCERNS
[SOURCE: Wall Street Journal Interactive, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB956253795238391492.htm)\

FREE SPEECH

REGULATORS CONFRONT WEB ROLE IN POLITICS
Issue: Political Discourse
As more campaigning goes online, federal regulators are beginning to face
difficult questions about how to regulate political discourse on the Web.
"The Internet has thrown an utterly unanticipated means of political
communication before everyone," said Laurence C. Gold, associate general
counsel for the A.F.L.-C.I.O., whose own Web site has a section devoted to
endorsing Vice President Al Gore. "You cannot say that federal regulations
don't apply to something just because no one knew about the technology at
the time," he notes. Regulators must negotiate the possibility of campaign
abuses in cyberspace, and the benefits of online free speech and grass-roots
participation. The Federal Communication Commission, which recently invited
comments on how to approach Web politics, needs to answer questions such as:
Is an individual or grass-roots Web site a campaign contribution? And, if
so, how should it be valued? Most of the individuals, unions, corporations
and nonprofit groups that have responded to the commission's inquiry - in
about 30 letters and 1,200 e-mail messages -- have argued for holding off on
any action until after the election.
[SOURCE: New York Times (A16), AUTHOR: Leslie Wayne]
(http://www.nytimes.com/library/tech/00/04/biztech/articles/21web.html)

SUIT AGAINST ANONYMOUS PEST REVIVES ONLINE SPEECH LAW
Issue: Free Speech
The Communications Decency Act (CDA) is back from the dead, sort of. A
portion of the 1996 legislation, making the use of a telecommunications
device, such as a modem, to transmit comments that are "obscene, lewd,
lascivious, filthy or indecent" when the intent is "to annoy, abuse,
threaten, or harass another person." In a lawsuit filed April 11, About.com
claims that an unknown person has been invading various company chatrooms,
including those with subjects such as alcoholism, dating and rodeo. The
intruder has been filling the rooms with "obscene, lewd, lascivious, filthy
and indecent messages through interstate communications with the intent to
annoy, abuse, threaten and harass other people." Many thought the remaining
portion of the CDA had died in 1998 when US District Court for the Northern
District of California rendered the law meaningless by interpreting it as
banning only obscene speech not protected by the First Amendment, thus
banning something that is already banned. Chris Hansen, a lawyer with the
American Civil Liberties Union who specializes in Internet speech, is
opposed to the New York suit, which goes against the District Court's
interpretation. "The private use of the law is particularly troubling to
me," he said. ". . .An awful lot of people could be rushing into federal
court to stop all kinds of speech they find annoying."
[SOURCE: New York Times (Cyber Times), AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/library/tech/00/04/cyber/cyberlaw/21law.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/)

Museums: A Special Section (NYT)
Sure, its not exactly about what we cover, but we thought you might like to
know that there's a special 34-page section on museums today in the Times.
See the URL below.
[SOURCE: New York Times (Section D)]
(http://www.nytimes.com/library/arts/041900mus-index.html)

DIGITAL DIVIDE
Clinton Uses High-Tech Show to Push Plan for
Internet Parity (NYT)
Clinton Enlists Net in Battle Against Poverty (USAToday)
Reno Seeks High-Tech Tools for Disabled (WP)
Digital Divide Forum (NTIA)
Telecommunications Deployment and Subscribership in
Underserved Areas (NTIA)

INTERNET
Librarian, Long an Internet Booster, Sees Clouds on Web Horizon
(CyberTimes)
Agencies Form Group to Help Set Guidelines for Ads on the Web (WSJ)
COPPA Begins New Era (CME)
No Grown-ups Allowed on eKids Playground(USA)
Palm, Delphi to Sell Device to Operate Organizers in Cars (WSJ)
Ananova, Virtual Newscaster, Hopes to Deliver the Goods (WSJ)

COMPETITION
Firms Duel Over The Wired West (WP)

JOBS
SBC Communications Sued by Workers on Stock Sale (NYT)

INTERNATIONAL
Frequency Conflict May Make France a Bluetooth-Free Zone (WSJ)

ANTITRUST
Microsoft's Server Tactics May Influence Antitrust Case (WSJ)
Microsoft Defends Its Practices (WP)

DIGITAL DIVIDE

CLINTON USES HIGH-TECH SHOW TO PUSH PLAN FOR INTERNET PARITY
Issue: Digital Divide
Speaking in Chicago yesterday to participants at the Comdex/Spring 2000
computer trade show, President Clinton said, "I came here today to ask you
to set another trend -- to devote more time and technology, more ideas and
energy, to closing the digital divide. I honestly believe that the new
information economy has the potential, at home and around the world, to lift
more people out of poverty more quickly than at any previous period in all
of human history -- and that tapping that potential is actually in our
enlightened self-interest."
[SOURCE: New York Times (A18), AUTHOR: Marc Lacey]
(http://www.nytimes.com/library/tech/00/04/biztech/articles/19bill.html)

CLINTON ENLISTS NET IN BATTLE AGAINST POVERTY
Issue: Digital Divide
President Clinton visited a technology trade show Tuesday and urged
executives to put their time, talent and money into ensuring that all
Americans have access to the Internet. President Clinton urged technology
executives at Comdex in Chicago to put their time, talent and money into
ensuring all Americans have access to the Internet. "American values require
that everyone be given a fair chance to participate," President Clinton said.
"It's good social policy, good personal ethics and good for our economy."
Fredric Rosen, chairman of ZD Events, said his company will gladly join the
"digital divide" fight and urged his fellow executives to do the same. "It
is time for those of us who have been the beneficiaries of this Internet
revolution to voluntarily share our knowledge and wealth with those who have
not, he
said.
[SOURCE: USA Today, AUTHOR: Richard Benedetto]
(http://www.usatoday.com/usatonline/20000419/2174169s.htm)

RENO SEEKS HIGH-TECH TOOLS FOR DISABLED
Issue: Disabilities/Digital Divide
Speaking at the FOSE (which does not stand for anything -- we guess that
sometimes a cigar is just a cigar) convention, Attorney General Janet Reno
yesterday urged IT companies to provide products for the disabled and
encouraged government agencies to move aggressively to make their workplaces
more welcoming for disabled workers. "It does not have to be expensive, it
does not have to be difficult, and it is the right thing to do," she said.
Reno's speech was to focus attention on government agencies' Aug. 7 deadline
for making their information technology accessible to disabled workers.
Floor exhibits included a variety of new devices for the disabled, including
speech-recognition software, Braille printers, ergonomic keyboards and
special computer mice.
[SOURCE: Washington Post (E3), AUTHOR: Mike Musgrove]
(http://www.washingtonpost.com/wp-dyn/articles/A38865-2000Apr18.html)

DIGITAL DIVIDE FORUM
Issue: Digital Divide
Gregory L. Rohde, assistant secretary of commerce for communications and
information and administrator of NTIA, participated in a "Digital Divide"
Forum in Brooklyn, New York on April 17 that focused on the challenges faced
by minority companies in efforts to close the gap between those with access
and those without access to information technologies, tools critical for
economic success and advancement. The Forum was organized by Representatives
Edolphus Towns (D-NY) and Maxine Waters (D-CA), senior members of the
Congressional Black Caucus. The Forum also explored ways of improving access
to the Internet for minorities and low-income Americans. Among those
participating in the Forum were representatives from Bell Atlantic, GTE,
AT&T, New Media Technology, Netcom Technological Solutions, the
Telecommunications Development Fund, WireAmerica, Technical Career
Institute, Long Island University, Fort Greene SNAP, and Brooklyn Community
School Board 13.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/nydigdivide041800.htm)

TELECOMMUNICATIONS DEPLOYMENT AND SUBSCRIBERSHIP IN UNDERSERVED AREAS
Issue: Universal Service
The NTIA filed Ex Parte comments in FCC proceeding (CC Docket No. 96-45):
NTIA urges the FCC to revise eligibility rules for receipt of universal
service funding to encourage more service to remote areas such as tribal
lands. NTIA suggested ways to change eligible telecom carrier (ETC) rules:
1) Declare that carrier need not be already providing service in order to
obtain ETC designation; 2) Bar state regulators from establishing additional
eligibility requirements for ETC designation if they conflict with other
provisions of Telecom Act; and 3) Clarify procedures for FCC action on ETC
requests from carriers not subject to state jurisdiction, such as tribal
carriers. "If these actions result in an increase in the number of carriers
designated as ETCs, the [FCC] should ensure that all designated ETCs receive
sufficient universal service support."
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/fccfilings/tribal41700.htm)

INTERNET

LIBRARIAN, LONG AN INTERNET BOOSTER, SEES CLOUDS ON WEB HORIZON
Issue: Content
"Librarians have played a very important role in protecting intellectual
freedom and privacy online. We've done it formally as a profession. And we
have been champions for people who don't often have champions -- poor people
who use libraries because they have no other access to the Internet," said
librarian Karen Schneider, the author of one of the early books about
filtering. She sees trouble ahead caused by the mass commercialization of
the Web. "It's funny that people are concerned about being exposed to a
naked body on the Internet, but they're not concerned about the
ramifications of being exposed to this onslaught of commercialism from an
early age and its impact on the value systems of children," she said. She
also warns that people tend to trust the information they find online more
than that which they find in books -- even when the information online is
wrong. Ms. Schneider believes there's a pressing need for teachers,
librarians and other caring adults to redouble efforts to teach students how
to use the Internet for education -- not just entertainment and consumerism.
"There has to be an ongoing educational effort. It has to begin at home and
continue at school," Ms. Schneider said. "We all have the tendency to want
to just put a kid in front of a computer and then do something else. But
there has to be that involvement."
[SOURCE: CyberTimes, AUTHOR: This is Pamela Mendels's last Education column.
The column will continue next week under new authorship.]
(http://www.nytimes.com/library/tech/00/04/cyber/education/19education.html)

AGENCIES FORM GROUP TO HELP SET GUIDELINES FOR ADS ON THE WEB
Issue: Advertising
Advertising agencies such as Advertising.com, Modem Media, Organic and
Agency.com are banding together to form an organization called New Media
Consortium. The organization is being formed in response to the slow
progress made by FAST, or the Future of Advertising Stakeholders, a broad
based industry coalition formed two years ago to establish online ad
standards. Since FAST was created, it has set only a few guidelines,
including defining what constitutes a "click" on a banner ad or an
"impression." It also has recommended guidelines for consumer privacy
online. But for many advertising agencies, FAST hasn't been fast enough.
The New Media Consortium seeks to provide more specific, legal definitions
of terms in order to make Web sites more accountable for billing. "We are
trying to nail down some things," said one of the New Media Consortium's
co-founders Greg Smith, director of strategic services at Darwin Digital,
the interactive unit of Saatchi & Saatchi. The New Media Consortium has its
first meeting in New York today.
[SOURCE: Wall Street Journal (B7), AUTHOR: Kathryn Kranhold]
http://interactive.wsj.com/articles/SB956092938772637531.htm

COPPA BEGINS NEW ERA
Issue: Privacy
From Press Release: "Friday, the Children's Online Privacy Protection Act
(COPPA) goes into effect. This is a major step forward to protect children,
our most vulnerable citizens, from manipulative and exploitative marketing
and advertising practices on the Web," said Kathryn Montgomery, Ph.D.,
president of the Center for Media Education (CME). "Along with a coalition
of education, child advocacy, health and consumer groups, we've worked
toward this goal for several years."
The Federal Trade Commission Rule implementing COPPA goes into effect April
21, 2000. Under this Rule, commercial Web sites targeted to children under
age 13 must:
* Provide clear notice of what personal information children are being
asked for and how it is to be used.
* Obtain verifiable parental consent (for example, a signed authorization
form mailed or faxed back to the Web site; a call to a toll-free number by a
parent) in most instances, before collecting and using a child's personal
information.
* Provide parents access to the personal information collected from their
child and the right to prevent further use.
[SOURCE: Center For Media Education]
(http://www.cme.org/)

NO GROWN-UPS ALLOWED ON EKIDS PLAYGROUND
Issue: Media&Society
These days many parents struggle to find a safe place for their children on
the Internet. That is why SilverTech, a San Francisco-based start-up, just
launched eKids Internet, a private network for kids. While eKids, which is
funded by corporate sponsors, is mostly free for kids who have Net access,
kids are requested to refer other kids to the program. SilverTech controls
everything that goes into the eKids network and has a screening process to
eliminate those who shouldn't be online. Everyone must fill out a form
specifically designed to weed out non-kids. Monitors also constantly check
the chat rooms and other venues for inappropriate behavior.
[SOURCE: USAToday (3D), AUTHOR: Janet Kornblum]
(http://www.usatoday.com/usatonline/20000419/2174641s.htm)

PALM, DELPHI TO SELL DEVICE TO OPERATE ORGANIZERS IN CARS
Issue: InfoTech
Palm Inc. and Delphi Automotive Systems Corp. have announced plans to sell
a device that will let drivers plug their Palm V handheld organizers into
their cars. Drivers will be able to operate the organizers with voice
commands while cruising down the road. Delphi and Palm haven't yet announced
the price of the device or the monthly Internet service. The voice activated
system is just the latest development in a race to bring consumer Internet
technologies into cars and trucks. Some critics, however, argue that
electronic devices in moving vehicles present a safety hazard because they
divert a driver's attention from the road [Watch out for that tree!] -- even
if they allow the driver to keep both hands on the wheel. Dave Wohleen,
president of Delphi's electronics and mobile-communications sector, noted
that thousands of Palm users currently hold their organizers in one hand and
the steering wheel in the other [oh, you're not supposed to do that?], and
said a voice-activated system "is certainly safer than that."
[SOURCE: Wall Street Journal (B6), AUTHOR: Jeffrey Ball]
(http://interactive.wsj.com/articles/SB956107144519992639.htm)

ANANOVA, VIRTUAL NEWSCASTER, HOPES TO DELIVER THE GOODS
Issue: Journalism?
Ananova, with her green hair, big eyes, slightly jerky movements and a
vaguely American accent makes her Internet debut today (www.ananova.com).
Now, computer users around the world can have breaking news bulletins read
to them by the glamorous cyber-anchor, programmed to exude a range of human
emotions. "She's not a babe. She's a sophisticated real-time computer
system," says Vivienne Adshead, Britain's Press Association news agency
commercial director. Ananova was developed by Britain's Press Association
news agency, which has gone so far as to rename its new media division
Ananova Ltd. Yet, Ananova bears more than a passing resemblance to Posh
Spice, a.k.a. Victoria Beckham, even though her creators dismissed claims
that she's just another cyber-babe along the lines of Internet icon Lara
Croft, the buxom heroine of the video game Tomb Raider. "She's a lot more
than a talking head that reads the news," Mark Hird, publishing director at
Ananova Ltd.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Jill Lawless]
http://interactive.wsj.com/articles/SB956083475135471955.htm

COMPETITION

FIRMS DUEL OVER THE WIRED WEST
Issue: Competition
In Phoenix, telephone, cable and satellite companies are engaged in
house-to-house urban warfare in an effort to get customers. The two major
combatants in this conflict are Cox Communications which has installed new
equipment and cables to make it possible to sell local telephone service and
fast Internet connections, in addition to cable television. In response, US
West has recently begun to offer cable television service over phone lines
using a technology called VDSL. As the main battle plays itself out,
satellite companies and small cells of rival ISP's are engaged in their own
guerilla warfare to gain footholds in the rough desert landscape. Phoenix is
at the center of this mess because it's growth rate is amazing. From 30,000
twenty years ago, the population has swelled to 170,000 within the city
limits. Caught in the middle of the battle, are, of course, the consumers.
"We've gotten so sick of all the incoming information that we just block it
out," said Annette Wilkes of suburban Chandler.
[SOURCE: Washington Post (A1) AUTHOR: Peter S. Goodman]
(http://www.washingtonpost.com/wp-dyn/articles/A17099-2000Apr14.html)

JOBS

SBC COMMUNICATIONS SUED BY WORKERS ON STOCK SALE
Issue: Mergers/Jobs
After a series of mergers made AirTouch Communications and SBC
Communications competitors, SBC sold shares of AirTouch held in
company-controlled retirement accounts. The sale is estimated to have cost
45,000 employees and retirees $1.1 billion. A group of 18 employees,
retirees and spouses have now filed a suit claiming that SBC provided
misleading information about employees' ability to retain shares in AirTouch
by moving them into IRA accounts. Johnston writes, The suit is by far the
largest in a growing number of cases involving possible conflicts between
the self-interest of companies in how they invest their workers' retirement
money and their duty under the Employee Retirement Income Security Act to
operate the plans "solely in the interests of the participants and
beneficiaries and for the exclusive purpose of providing benefits."
[SOURCE: New York Times (C2), AUTHOR: David Cay Johnston]
(http://www.nytimes.com/yr/mo/day/news/financial/sbc-lawsuit.html)
See Also:
EMPLOYEES SUE SBC OVER STOCK IN 401(K)
[SOURCE: Washington Post (E3), AUTHOR: Albert B. Crenshaw]
(http://www.washingtonpost.com/wp-dyn/articles/A40554-2000Apr18.html)

INTERNATIONAL

FREQUENCY CONFLICT MAY MAKE FRANCE A BLUETOOTH-FREE ZONE
Issue: International/Spectrum
France has the distinction of being the only country not signed on to the
Bluetooth protocol, which promises to be the world-wide standard for
short-range wireless networking. Bluetooth is the wireless technology that
lets computers, mobile phones and other electronic devices communicate with
each other. Over 1,700 high-tech companies have committed to supporting the
free and open protocol pioneered by Ericsson. So why is France not
participating? It's more a matter of "can't" than "don't want to". It
appears that the French military is already using a big chunk of the
Bluetooth radio frequency for its own communications and has so far resisted
pressure to give it up. "For the moment we're negotiating, but it's not sure
we're going to be able to move the military," says Olivier Marzouk, an
associate in the office of European affairs at France's national frequency
authority. The French armed forces control 43.5% of a large band of spectrum
that includes the 2.4-gigahertz Bluetooth frequency. They use it for
wireless communications and special testing devices. "If Bluetooth becomes a
big success and there are a lot of systems that are installed, we risk
having a lot of noise" in the army's signal, says Mr. Marzouk. Until the
issue is resolved, it will be illegal to use a Bluetooth unit in France.
This is a blow to a technology that was designed to be used world-wide with
minimal hassle.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Kevin Delaney]
http://interactive.wsj.com/articles/SB956086696223338851.htm

ANTITRUST

MICROSOFT'S SERVER TACTICS MAY INFLUENCE ANTITRUST CASE
Issue: Antitrust
The more you read about Microsoft, the more ya just gotta love the software
giant. Already in the remedy phase of an antitrust suit, new allegations are
being investigated that Microsoft is trying to extend its monopoly power to
the Internet and network "server" market with its new Windows 2000 operating
system. In a document submitted this week to federal officials, a group of
rivals allege that Windows 2000 works well only in an all-Microsoft network.
Microsoft says the server market is competitive and that the company
shouldn't be subject to restraints. It also charges that any new state and
federal scrutiny is being fueled by its competitors, especially Sun, Oracle
and IBM. Microsoft's effort to integrate new features into its server
software is no different from competitors' efforts to woo customers, a
spokesman said. Moreover, the company contends it would be inappropriate for
the court to include in its remedies issues that weren't raised at trial.
The market for servers "certainly wasn't a centerpiece of the case," says
Glenn B. Manishin, an antitrust lawyer in Washington who has worked with
some of the company's fiercest critics. But "the rules on remedies are, you
eliminate the monopoly and you prevent it from recurring, and that includes
prophylactic remedies to prevent a related monopoly from occurring in other
markets."
[SOURCE: Wall Street Journal Interactive, AUTHOR: John Wilke and Ted Bridis]
http://interactive.wsj.com/articles/SB956092838531461842.htm

MICROSOFT DEFENDS ITS PRACTICES
Issue: Antitrust
"I feel deeply that we behaved in every instance with super integrity. I'm
not saying we don't talk tough, that people don't get a little 'grrrr' in
their e-mail and all that." So said Microsoft CEO Steve Ballmer speaking at
the Washington Post yesterday. Ballmer's statement came even as U.S.
District Judge Thomas Penfield Jackson is preparing to decide what should be
done with the company Jackson found guilty of violating federal anti-trust
law. Meanwhile, the Computer & Communications Industry Association is set to
release a white paper today which alleges that " Microsoft is using its
monopoly position on the desktop to springboard into another position of
dominance in the server market." Ballmer disagrees, but only to a point.
"Would it actually be helpful to our industry if we were less rough around
the edges--not less competitive--but less rough around the edges? Yeah, I
think it would help. . . . When you are a little rough around the edges,
people think that maybe you are trying to constrain opportunities."
[SOURCE: Washington Post (E1), AUTHOR: James V. Grimaldi]
(http://www.washingtonpost.com/wp-dyn/articles/A38873-2000Apr18.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/)