June 2000

Communications-related Headlines for 6/30/2000

TELEPHONY
Regulators to Clear SBC To Offer Long Distance (WSJ)
A Local Phone Giant Pushed The 'Star' Key (WP)

POLITICAL DISCOURSE
Protestors Make Their Point By Picking at Their Keyboards (WSJ)
Clinton And Tony Blair To Take Questions Online (NYT)

INTERNET
Antitrust Regulators Aren't in a Rush To Assert Control Over Online
Market (WSJ)
Online And Unidentifiable? (WP)
The Hot New Thing Is the Old Phone In Gimmick-Hungry Dot-Com World
(WSJ)

TELEPHONY

REGULATORS TO CLEAR SBC TO OFFER LONG DISTANCE
Issue: Telephony
When SBC Communications gets the approval to offer long-distance service in
its home state of Texas today, as expected by regulators, it will become the
second regional Bell company to be granted entry into the $80 billion annual
long-distance market. Bell Atlantic, the New York-based phone provider, is
the only other regional Bell company that has been granted entry into the
long-distance market -- in New York state. According to people familiar with
the situation, the Federal Communications Commission is satisfied that the
San Antonio-based company has sufficiently opened its local market to
competitors -- a requirement the Baby Bells must meet before being allowed
to sell long-distance service. The Bells are eager to offer long distance as
part of a bundle of telecommunications services, and to be able to carry
Internet and data traffic, much of which is long distance. "To most people,
it's kind of arbitrary what makes a call local and what makes it long
distance. They just want it to be part of the bundle that the company is
offering," says Richard Klugman, an analyst with Donaldson, Lufkin &
Jenrette.
[SOURCE: Wall Street Journal (A3), AUTHOR: DEBORAH SOLOMON]
(http://interactive.wsj.com/articles/SB962315761575460390.htm)
See Also:
FCC ON VERGE OF APPROVING SBC'S LONG-DISTANCE BID IN TEXAS
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/018564.htm)

A LOCAL PHONE GIANT PUSHED THE 'STAR' KEY
Issue: Telephony
GTE has admitted to illegally giving millions of dollars' worth of
fiber-optic and other communications services to a host of Hollywood
notables over several years in an effort to win big contracts in the
entertainment industry. The local phone giant allegedly provided free or
cut-rate services to large and important clients ranging from director
Steven Spielberg and the University of California at Los Angeles. While
favors and freebies are common for key clients in many industries, such
practices are prohibited by California's phone regulators, who want to
ensure that residential and business customers don't unwittingly subsidize
low rates for others. GTE is currently negotiating with the California
Public Utilities Commission to settle the allegations, which stem from a PUC
review and subsequent audit that uncovered misconduct on more than 100
customer contracts from 1995 to mid-1998. GTE is likely to be fined several
million dollars.
[SOURCE: Washington Post (E4), AUTHOR: Elizabeth Douglass]
(http://washingtonpost.com/wp-dyn/articles/A23302-2000Jun29.html)

POLITICAL DISCOURSE

PROTESTORS MAKE THEIR POINT BY PICKING AT THEIR KEYBOARDS
Issue: Political Discourse
Demonstrators are expected to swell the town of Millau in southern France
Friday, as antiglobalization icon Jose Bove goes on trial for dismantling a
McDonald's restaurant there last year. But their in-the-streets tactics,
while attention-grabbing, are looking increasingly dated as political
protest moves to the Internet. While last year's riots in Seattle have come
and gone, the Geneva-based WTO is still fighting online mayhem seven months
later. Antiglobalization protestors have repeatedly tried to take out its
Web site, going so far as to create a fake WTO home page designed to mislead
Internet surfers. The WTO has had to increase its tech budget by as much as
40%. "It's a constant battle," says a WTO spokesman. The Organization for
Economic Cooperation and Development (OECD) has been similarly targeted by
protestors. An Italian group calling itself "Contropiani," or Counter Plans,
earlier this month urged Internet users to help overload the OECD's Web site
to protest the organization's Bologna, Italy, conference and its alleged
efforts to "starve and destroy the South and the East of the world." "If I
were an organization who was out of favor, who was already the target of
displeasure of pressure groups, I'd be very worried about this," says Phil
Ryan of Peapod UK Ltd., an information security consultancy. At the same
time, it's not yet clear that these "netstrikes," as they're sometimes
known, have the same awareness-raising potential as banner-bearing marches
like those in defense of Mr. Bove.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Kevin J. Delaney]
(http://interactive.wsj.com/articles/SB962302301149879107.htm)

CLINTON AND TONY BLAIR TO TAKE QUESTIONS ONLINE
Issue: Political Discourse
President Bill Clinton and British Prime Minister Tony Blair plan to take
questions from Internet users around the globe during a trans-Atlantic
online town hall meeting next month. President Clinton is scheduled to
participate in the July 14 "Webcast" from a hotel in Baltimore's Inner
Harbor, where he is to attend a Democratic Leadership Council meeting. The
format is similar to an online question-and-answer session Clinton held from
the White House last year in which Internet users were able to send him
questions via e-mail.
[SOURCE: New York Times (Online), AUTHOR: Associated Press]
(http://www.nytimes.com/library/tech/00/06/biztech/articles/30clinton-blair.
html)

INTERNET

ANTITRUST REGULATORS AREN'T IN A RUSH TO ASSERT CONTROL OVER ONLINE MARKET
Issue: Internet/E-commerce
Federal antitrust enforcers have said that they won't rush into regulating
online marketplaces. Federal Trade Commission Chairman Robert Pitofsky said
antitrust concerns are raised when competing companies get together in what
is called business-to-business exchanges, but at this point in the
industry's development that isn't his primary concern. In a workshop to
consider the benefits and potential problems of the estimated 700
marketplaces where corporate buyers and sellers are now doing business
online, Mr. Pitofsky said, "I'm really more concerned in understanding the
efficiencies of these arrangements than trying to isolate problems." FTC
Commissioner Orson Swindle told the roughly 600 business executives, lawyers
and government officials who took part in the workshop that decisions made
now about new marketplaces will affect commerce profoundly. "Because of the
magnitude of this," if the FTC messes this up, "we will have caused some
terrible damage," he said. "The FTC will wait and see what comes out of the
workshop," said Susan DeSanti, FTC director of policy planning.
[SOURCE: Wall Street Journal (B4), AUTHOR: JILL CARROLL and KAREN
LUNDEGAARD]
(http://interactive.wsj.com/articles/SB962314800292423337.htm)

ONLINE AND UNIDENTIFIABLE?
Issue: Internet
Today researchers at AT&T Labs will reveal a new technology that can help
Internet users evade censors. "It seems like more and more, technologies are
being introduced that limit the freedom of individuals--especially in
repressive administrations" around the world, said Aviel D. Rubin, who
developed Publius with AT&T colleague Lorrie F. Cranor and graduate student
Marc Waldman. "We are hoping that by providing some tools to help the
individual, we can help offset this
trend a little bit." Publius works by encrypting files--from text to
pictures and music--and dividing them into smaller pieces to be distributed
over a number of servers, making it hard to trace the original transaction.
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-dyn/articles/A21689-2000Jun29.html)

THE HOT NEW THING IS THE OLD PHONE IN GIMMICK-HUNGRY DOT-COM WORLD
Issue: Internet/Voice Service
With 90 million cell-phone customers dot-coms are attempting to make their
content wireless-friendly. And many are making commitments to
voice-recognition technology that can be used on all phones, allowing them
to be accessible to almost every consumer in the nation--computer-savvy or
not. Kathy Kinney, MapQuest's director of business development, who has been
overseeing the New York-based company's drive to provide its Web content by
phone, says, "This is the way we can reach the neighbor across the street
through the phone in her kitchen that she's been using all her life."
America Online, E*Trade, and voice portals like Quack.com have already been
involved in providing voice services over the phone. And AT&T recently
invested $60 million in TellMe Networks to provide phone services. However,
applying voice service to the Web requires rewriting software code to
translate text into speech. Service providers must either create
applications in a new technological standard or pay for recorded content,
which can potentially cost millions of dollars for one Web site.
[SOURCE: Wall Street Journal (A1), AUTHOR: Nicole Harris]
(http://interactive.wsj.com/articles/SB962316648774649505.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 Program (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) and
Mugo Macharia (mugo( 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.

Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Debate America (www.debateamerica.org)
Oneworld US (www.oneworldus.org)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)

Communications-related Headlines for 6/29/2000

INTERNET
Groups Begin Public Awareness Campaign for Internet Board Election
(NYT)
Studies Reveal a Rush of Older Women to the Web (NYT)
U.N. Plans Internet Conference (NYT)
Office E-Mail Takes Over (WP)

BROADCASTING
Univision Begins Internet Venture (SJM)

EDTECH
School Decision Might Clear Way For Vouchers (USA)

MERGERS
Gannett Agreed To Acquire Central Newspapers (WSJ)
Deutsche Telekom May Bid For Sprint, Though Others Are Also
Interested (WSJ)
Recent History Shows Europe To Be Against Telecom Mergers (WSJ)

INTERNET

GROUPS BEGIN PUBLIC AWARENESS CAMPAIGN FOR INTERNET BOARD ELECTION
Issue: Internet
The Center for Democracy and Technology, Common Cause and the American
Library Association, in cooperation with the Internet Corporation for
Assigned Names and Numbers (ICANN), launched the "Become a Cyber Citizen"
effort to recruit cyber citizens to help administer the Internet. ICANN,
which was selected by the Clinton Administration in 1998 to take over
administration of the network's domain name system, is seeking to register
new cyber citizens by July 31 so that individual Internet users are properly
represented on the board and are eligible to vote in the first election. The
nonprofit group is holding its first global elections this fall. ICANN has
already elected nine industry board members but has plans to elect nine
at-large members, who will represent Internet users in its general policy
making.
[source: New York Times (Cybertimes) Author: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/06/cyber/articles/29domain.html)

STUDIES REVEAL A RUSH OF OLDER WOMEN TO THE WEB
Issue: Internet
In America, the Web is no longer the young male bastion it once was. "The
Web is now, in fact, very middle-aged," said Doug McFarland, senior vice
president and general manager at Media Metrix, the Web ratings firm. "It
tends to be used by people in their mid-40's on average. Not young people
who are popping pizza all day." And this year, for the first time, the Web
has reached a balance between men and women. The fastest growing group among
Web users in the last year, in fact, women over 55. There is still a
striking digital divide between this nation's rich and poor. Jupiter
Research figures show that only 21 percent of households with incomes of
less than $15,000 a year have Web access, compared with 78 percent of those
with incomes over $75,000, despite the drop in the price of a PC or an
Internet connection. Studies also show the World Wide Web remains mostly an
American phenomenon. The United States has more Web users than the next 15
countries combined.
[SOURCE: New York Times (C7), AUTHOR: Ian Austen]
(http://www.nytimes.com/library/tech/00/06/circuits/articles/29numb.html)

OFFICE E-MAIL TAKES OVER
Issue: Internet
A new study, called "E-Mail Behavior in the Workplace," revealed that e-mail
is replacing other traditional forms of business communication. Connducted
by Vault.com, a Web site for career and human resources information, the
study found that 80 percent of the 1,000 employees polled said e-mail has
replaced "snail mail" for the majority of their
business correspondence. 72.5 percent said it has replaced faxing and 45
percent said it has replaced phone calls.
[SOURCE: Washington Post (E7), AUTHOR: Terence Chea]
(http://washingtonpost.com/wp-dyn/articles/A16205-2000Jun28.html)

U.N. PLANS INTERNET CONFERENCE
Issue: Internet
The United Nations has announced that it would host a conference in July on
speeding up worldwide economic development through Internet technology.
Meeting participants will likely examine such problems as connecting to the
Net, training for its use and providing content in languages other than
English. "First among the issues that will be reflected on during our
ministerial round-table discussion (July 6) is that there is a 'digital
divide' between countries that are rich in information and countries that
are poor in information," said Ambassador Makarim Wibisono of Indonesia,
president of the U.N. Economic and Social Council (ECOSOC), which is
organizing the conference.
[SOURCE: New York Times (Online), AUTHOR: Reuters]
(http://www.nytimes.com/library/tech/00/06/biztech/articles/29un-tech.html)

BROADCASTING

UNIVISION BEGINS INTERNET VENTURE
Issue: Broadcasting/Internet
Univision Communications Inc. has launched its Internet venture. Until now,
Univision had kept its viewers in the dark on the cyber revolution with a
ban on all advertisements from dot-coms. Now that the network has launched
its own venture, it is expected to devote plenty of air time to educate
consumers on computer use and aggressively promote the site, along with
low-priced hardware and software deals with major manufacturers. The
publicity will reach millions of immigrants who have been among the
country's least connected. Sources say Univision will begin heavily
promoting its site in Los Angeles as early as next week, advertising on its
own network and passing out free disks at retail outlets. Through
partnerships with IBM and software manufacturers, Univision.com is also
expected to offer a PC and ISP package loaded with the Univision.com home
page, as well as around-the-clock Spanish-language assistance through an 800
number. Univision owns and operates 19 stations, and has 33 affiliate
stations and 1,029 cable affiliates in the United States. It also owns the
Galavision Spanish-language cable network. Content throughout caters
specifically to immigrant Latinos in the United States, a departure from
many of the portals attempting to capture Spanish-speakers here and abroad.
The Los Angeles-based network is the fastest growing broadcaster in the
United States, holding an 83 percent share of the prime-time audience that
watches TV in Spanish.
[SOURCE: San Jose Mercury News, AUTHOR: Lee Romney (Los Angeles Times)]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/000472.htm)

EDTECH

SCHOOL DECISION MIGHT CLEAR WAY FOR VOUCHERS
Issue: EdTech
Yesterday, the Supreme Court ruled that taxpayer funds can be used to supply
religious schools with computers and other educational equipment. The 6-3
ruling in a Louisiana case upholds a program that sends federal money to
public school districts to purchase and lend classroom equipment to private
and parochial schools as long as the goods are not used for religious
purposes. Previous rulings had limited loans and purchases to textbooks
because they could be screened easily for religious neutrality.
[SOURCE: USAToday (9A), AUTHOR: Donna Leinwand]
(http://www.usatoday.com/usatonline/20000629/2412396s.htm)

MERGERS

GANNETT AGREED TO ACQUIRE CENTRAL NEWSPAPERS
Issue: Merger
Gannett Co. plans to acquire Central Newspapers Inc., owner of the Arizona
Republic and the Indianapolis Star, for $2.6 billion in the latest string of
acquisitions by the newspaper giant. In a news release, Gannett said the
transaction has been approved by both companies' boards. In addition to its
two main newspapers, Central owns a series of smaller publications around
Indianapolis and Phoenix. Unlike other deals Gannett has made in recent
times, the proposed acquisition of Central Newspapers Inc., could pose
conflict with its TV station. The Federal Communications Commission rules
don't allow companies to own a TV station and newspaper in the same town.
Gannett would own the Arizona Republic and KPNX, an NBC-affiliate television
station in Phoenix. The FCC regulations on cross-ownership would require
Gannett to sell the station when the license comes up for renewal in 2006 if
it can't get a waiver. The proposed acquisition by Gannett would end a
family journalism dynasty that began with Eugene C. Pulliam, who began
delivering newspapers at age six and eventually owned dozens of papers.
Former vice president Dan Quayle, a grandson of the company's founder,
resigned from Central's board last year during his run for the Republican
presidential nomination.
[SOURCE: Wall Street Journal (A3), AUTHOR: MATTHEW ROSE]
(http://interactive.wsj.com/articles/SB962225912996654839.htm)

DEUTSCHE TELEKOM MAY BID FOR SPRINT, THOUGH OTHERS ARE ALSO INTERESTED
Issue: Merger
Deutsche Telekom AG is looking to step forward with a bid for Sprint Corp.
after the merger with WorldCom got derailed. According to Mario Monti, the
European Competition Commissioner, the merger threatened competition in
global Internet services. Deutsche Telekom discussed the desire to acquire
Sprint and other U.S. targets during a management board meeting Wednesday,
according to a company official. Deutsche Telekom already owns a 10% stake
in Sprint and has discussed buying the company once before. It could use the
acquisition to establish itself in the U.S. market for wireless and Internet
services. In its determination to expand beyond its home market, Deutsche
Telekom has been lobbying Washington politicians and has acquired a
stockpile of ammunition in form of cash in readiness to pounce for anything
in the U.S market. However, the German company is not the only one
interested in acquiring Sprint. Other European companies are also interested
in Sprint, but few of the big players seem as able as Deutsche Telekom to
pull off a deal.
[SOURCE: Wall Street Journal (A3), AUTHOR: WILLIAM BOSTON]
(http://interactive.wsj.com/articles/SB962220511121697960.htm)

RECENT HISTORY SHOWS EUROPE TO BE AGAINST TELECOM MERGERS
Issue: Mergers
Europe has become a more hostile place for splashy telecom mergers, with MCI
WorldCom and Sprint the latest companies to discover why. Mergers have
collapsed over disagreements about issues ranging from government ownership
to management positions to fights about the location of a company's
headquarters. Most recently, WorldCom's plan to buy Sprint was been thwarted
by antitrust authorities in Brussels, as well as by U.S. officials. In
recent months, several ambitious mergers have encountered difficulties. When
Vodafone AirTouch PLC pulled off its spectacular takeover of Germany's
Mannesmann AG early this year, it looked like every European phone operator
would be rushing to pair up. Telecom Italia SpA has yet to buy a single
European company of any size. Deutsche Telekom AG has held merger
conversations with a host of operators -- including Telecom Italia,
Telefonica SA, Qwest Communications International Inc., Equant NV -- but
failed each time to complete a transaction. British Telecommunications PLC,
which lost MCI Communications Corp. to a last-minute bid from WorldCom,
couldn't clinch a merger with Telefonica SA, say people close to the
companies. Big European deals "are more difficult to pull off," concedes Sir
Peter Bonfield, chief executive officer of BT. "Regulators have become more
concerned." Are European regulators trigger-happy?
[SOURCE: Wall Street Journal (A18), AUTHOR: GAUTAM NAIK
(http://interactive.wsj.com/articles/SB962220372178687131.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 Program (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) and Rachel Anderson (rachel( 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.

Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Debate America (www.debateamerica.org)
Oneworld US (www.oneworldus.org)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)

Communications-related Headlines for 6/28/2000

EDTECH
More Planning Needed for School Technology (CyberTimes)
Senate Passes Web School Proposals (SJM)

MERGERS
Justice Dept. Acts To Block Merger of Phone Giants (NYT)
Media Metrix Plans to Merge with Jupiter Communications (NYT)
AOL, Time Warner Tell the FCC A Merger Would Enhance Service (WSJ)

TELEPHONY
AT&T Expands Local Phone-Over-Cable Service (SJM)

INTERNATIONAL
Brazil Weighs Foreign Investment in Media Companies (NYT)
'Big Browser' Would Let U.K. Eavesdrop on Net (USA)
New Index Ranks Countries On Their High-Tech Strength (WSJ)
OECD Report Says Internet Economy Is Too Green to Gauge Growth
Effect (WSJ)

BROADBAND
Letter to FCC on Open Access to Advanced Telecommunications Services
(CFA)

ANTITRUST
Microsoft: Foolish Breakup Carries Hidden Costs (USA)

INTERNET
AOL Takes Step to Allow Users To Download Music for a Fee (WSJ)

EDTECH

MORE PLANNING NEEDED FOR SCHOOL TECHNOLOGY
Issue: EdTech
The CEO Forum has released a report that warns that the new computer
hardware flooding into schools may go to waste unless educators take time to
develop clear plans for how the technology will be put to work for students.
"You have to set the educational goals first," said Anne Bryant, co-chair of
the CEO Forum and executive director of the National School Boards
Association. "I'm looking at the overall goals and objectives. It is a
combination of content, training and connectivity." Internet-enabled
computers should not be the goal, the report warns, educators should focus
the
use of technology on clear outcomes -- such as training students in the
skills they need to compete in an information-based economy. "Technology is
not a panacea and can only improve and increase learning when applied to
meet specific educational goals and objectives," the report says. "Schools
need to examine their educational goals and determine which ones will be
supported by digital content." [Find the report, The Power of Digital
Learning: Integrating Digital Content, at (http://www.ceoforum.org/)]
[SOURCE: CyberTimes, AUTHOR: Rebecca Weiner (rweiner( at )nytimes.com)]
(http://www.nytimes.com/library/tech/00/06/cyber/education/28education.html)

SENATE PASSES WEB SCHOOL PROPOSALS
Issue: EdTech
The Senate passed two competing proposals for placing safeguards on Internet
in schools. A joint panel will develop a compromise. One proposal, by Sen.
John McCain (R-Ariz), would require schools and libraries who receive e-rate
subsidies to install some form of blocking or filtering technology to
restrict children's access to pornography and other obscene material.
According to Sen. Patrick Leahy (D-Vt), the McCain amendment would invite
the Federal Communications Commission "to be the de facto national censor.
Sen. Leahy said: "This broad self-censoring imposed by the McCain amendment
on schools and libraries will lead to a chilling of free speech to the
detriment of our nation's children and library patrons." The other proposal,
from Rick Santorum, (R-Pa), would give schools the option of installing the
blocking technology or developing an Internet use policy. The two plans,
which were attached to a massive spending bill for the departments of labor
and health and human services, will now have to be worked out before a
conference committee of Republican and Democratic lawmakers.
[SOURCE: San Jose Mercury News, AUTHOR: Janelle Carter (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/141816l.htm)

TELEPHONY

AT&T EXPANDS LOCAL PHONE-OVER-CABLE SERVICE
Issue: Telephony
AT&T has plans to offer local phone service over cable television lines in
homes in the San Francisco area. Experts say that local phone service is an
important part of AT&T's long-term strategy to bundle all of its services --
local and long distance calling, Internet connection, cable television and
wireless -- into one package. Telecommunications companies are eager to
bundle their offerings because they believe that consumers will ultimately
want to buy all of their services from one place and pay for all those
services with one bill.
[SOURCE: San Jose Mercury News, AUTHOR: Cecilia Kang]
(http://www.mercurycenter.com/svtech/news/front/docs/phone062800.htm)

MERGERS

JUSTICE DEPT. ACTS TO BLOCK MERGER OF PHONE GIANTS
Issue: Mergers
The Justice Department has sued to block the proposed merger of WorldCom and
Sprint citing concerns that the combined company would stifle competition on
the
Internet and in the long-distance telephone industry. The two companies have
also withdrawn the deal from consideration by European regulators who have
indicated they are unlikely to support the merger. Although the two
companies could fight the Justice Department in court, but executives had
said previously that they are unlikely to do so.
[SOURCE: New York Times (A1), AUTHOR: Schiesel & Leonhardt]
(http://www.nytimes.com/library/financial/062800worldcom-sprint.html)
See Also:
CONSUMERS UNION SUPPORTS DEPARTMENT OF JUSTICE SUIT TO BLOCK WORLDCOM-SPRINT
MERGER
[SOURCE: Consumers Union]
(http://www.consumersunion.org/telecom/worlddc600.htm)

MEDIA METRIX PLANS TO MERGE WITH JUPITER COMMUNICATIONS
Issue: Mergers
Web traffic measurement company Media Metrix plans to merge with Jupiter
Communications, a leading analyst of Internet trends. Combining the two
companies will create "the definitive source for Internet measurement and
analysis," said Tod Johnson, chairman and chief executive of Media Metrix.
Feder writes: Both Media Metrix and Jupiter are seen as industry leaders in
providing valuable insights into trends however questionable the actual
figures on which they are based. "Media Metrix's monthly reports definitely
move stocks," said Henry Blodgett, who tracks a broad portfolio of Internet
companies for Merrill Lynch. "It's the closest thing there is to a
standard." Media Metrix's largest competitor is Nielsen/NetRatings; Jupiter
competes with Forrester Research.
[SOURCE: New York Times (C2), AUTHOR: Barnaby Feder]
(http://www.nytimes.com/library/tech/00/06/biztech/articles/28net.html)
See Also:
WEB INFORMATION FIRMS MERGE
[SOURCE: Washington Post (E3), AUTHOR: Robert O'Harrow Jr.]
(http://washingtonpost.com/wp-dyn/articles/A8424-2000Jun27.html)

AOL, TIME WARNER TELL THE FCC A MERGER WOULD ENHANCE SERVICE
Issue: Merger
In a 50-page response to the FCC's request for information, America Online
Inc. and Time Warner Inc defended AOL's efforts to keep its Instant
Messenger system closed to users of competing services and argued that their
proposed merger would accelerate deployment of new communications services.
AOL reiterated its stance that it backs an open world-wide instant-messaging
system, but only if it protects users' security and privacy. Instant
messaging allows users to send notes that instantly pop up on the receiver's
screen. The companies stated that people can avoid barriers between
different instant-messaging services by subscribing to more than one
service. But they also said that any system requiring users to manage
multiple passwords and IDs is "seriously flawed." The FCC's request was part
of its review of the companies' proposed $109.33 billion merger.
[SOURCE: Wall Street Journal (B8), AUTHOR: Jill Carroll And Julia Angwin]
(http://interactive.wsj.com/articles/SB962158102495579030.htm)

INTERNATIONAL

'BIG BROWSER' WOULD LET U.K. EAVESDROP ON NET
Issue: Privacy
The British government is considering adopting a controversial initiative
that would give the government the power to eavesdrop on Internet traffic.
The initiative, which is being referred to as "Big Browser," has many
critics contending that it would undermine the country's ambition to become
a global e-commerce leader. David Banisar of the Electronic Privacy
Information Center, based in Washington, says "It sets a dangerous
international precedent . . . to create a global standard of (Internet)
wiretapping." Banisar believes that the British initiative would effect
Internet privacy debates elsewhere in Europe and in America. If adopted, the
"Big Browser" initiative would allow the government to require people to
surrender the text of electronic messages or face up to two years in jail.
The initiative, "Regulation of Investigatory Powers" (RIP) bill, is an
attempt to update 15-year old wiretap legislation to reflect the rise of
e-mail, mobile phones and the Internet.
[SOURCE: USAToday (12A), AUTHOR: David J. Lynch]
(http://www.usatoday.com/usatonline/20000628/2407215s.htm)

BRAZIL WEIGHS FOREIGN INVESTMENT IN MEDIA COMPANIES
Issue: International
The Brazilian Congress is considering a constitutional amendment that would
end a 66-year prohibition on foreign investment in the nation's media
companies. [Great, we can export Rupert Murdoch] The move could help raise
the funds needed by the Brazilian companies to keep up with technological
advancements in print and broadcast. "These are investments that will make
the growth and development of the whole industry possible," said Paulo
Machado de Carvalho Neto, vice president of the Brazilian Association of
Radio and Television Broadcasters. The amendment would allow foreigners to
own up to 30 percent of the capital of radio and television stations,
newspaper and magazine publishers. Opposition groups, including unions and
leftist parties that are normally against foreign investment in important
Brazilian industries, have been largely mollified by the relatively low
investment that will be permitted and a clause that prevents foreigners from
assuming any control over editorial content.
[SOURCE: New York Times (C4), AUTHOR: Jennifer Rich]
(http://www.nytimes.com/yr/mo/day/news/financial/brazil-media.html)

NEW INDEX RANKS COUNTRIES ON THEIR HIGH-TECH STRENGTH
Issue: International
A new index aims to create a scorecard for evaluating high-tech
competitiveness of countries, providing a new tool for companies looking to
more effectively target their online offerings. The Global New E-Economy
Index, created by Howard Rubin, who heads the computer-science department at
Hunter College of the City University of New York, ranks countries in five
categories. These categories include the number of high-tech professionals
and how fast the country is developing and deploying new technologies. Among
the findings, the U.S. ranks first overall, but falls closer to the middle
of the pack in some categories. The Philippines, for instance, ranks first
in the "knowledge jobs" category; Japan ranks highest in technological
innovation, Finland took the top spot in "economic dynamism and
competition," and Indonesia ranked last overall of the 47 countries
examined. Such an index is important, says Mr. Rubin, because Industrial-age
measures like gross domestic product don't give a complete picture of a
country's economic health -- and potential -- in the New Economy. "People
need to understand where new markets are, where to locate facilities and
where the new sources of labor will be," he said.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Jason Anders]
(http://interactive.wsj.com/articles/SB962134152818596674.htm)

OECD REPORT SAYS INTERNET ECONOMY IS TOO GREEN TO GAUGE GROWTH EFFECT
Issue: New and Old Economy
A report by the Organization for Economic Cooperation and Development (OECD)
says that, although the new economy is for real, it remains a vague term for
much of the world. Participants at an OECD conference in Paris said that
while higher productivity through the greater use of technology -- the most
common definition of the "New Economy" -- is measurable in the U.S., it
isn't yet apparent elsewhere. They also said it might simply be too early
to try to measure the New Economy's effects on global economies. What's
more, even if technology achieves increased productivity, there is nothing
particularly new about that, participants said. Acknowledging that
technological breakthroughs "have all transformed the way we live," and that
economic history is a succession of technological changes. Ignazio Visco,
chief economist of the OECD said the most important question is, did any of
these "earlier new economies produce a permanent rise in long-term growth?"
According to Visco, evidence does suggest that the initial effect of the
introduction of new technology actually might be to slow productivity and
economic growth. This is so because of the adjustments that companies and
individuals need to make to incorporate the new technology.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Christopher Rhoads]
(http://interactive.wsj.com/articles/SB962136223346637041.htm)

BROADBAND

LETTER TO FCC ON OPEN ACCESS TO ADVANCED TELECOMMUNICATIONS SERVICES
Issue: Open Access
On June 27, the Consumer Federation of America (CFA) submitted an ex parte
letter to the FCC today with respect to SBC's petition to provide long
distance service in the state of Texas. In the letter, CFA urged the FCC to
establish "broad principles for open access that apply to all advanced
service providers," including providers of xDSL and cable broadband
services.
For more information: Mark Cooper, CFA Director of Research, 301/384-2204.
[SOURCE: Consumer Federation of America]
(http://www.consumerfed.org)

ANTITRUST

MICROSOFT: FOOLISH BREAKUP CARRIES HIDDEN COSTS
Issue: Antitrust
The breakup of Microsoft, according to Lester Thurow, will only result in a
weakened computer-communications industry in the long run. Thurow suggests
that Microsoft case illustrates the narrow vision of American antitrust
policies. "If America is going to maintain leadership of the global
computer-communications industry, it will need firms in the future that are
just as aggressive as Microsoft is accused of being in the past," writes
Thurow. "If this case sets the precedent that driving other companies out of
business is a violation of antitrust laws, it will undercut the very nature
of the capitalistic system." He believes that the only way American
industry will remain strong, is if firms are allowed to aggressively compete
and seek to drive other companies-- American and foreign -- out of business.

[SOURCE: USAToday (17A), AUTHOR: Lester C. Thurow, former dean of
Massachusetts Institute of Technology's Sloan School of Management]
(http://www.usatoday.com/usatonline/20000628/2407210s.htm)

INTERNET

AOL TAKES STEP TO ALLOW USERS TO DOWNLOAD MUSIC FOR A FEE
Issue: Internet
America Online Inc. plans to permit its users to download digital music for
a fee, marking its first public step toward selling music online. AOL has
licensed a technology from InterTrust Technologies Corp, and will include it
in its Winamp online music player later this year as part of a routine
software upgrade. Using the add-on, AOL customers will be able to download
music from participating record labels or retailers for a fee that hasn't
yet been disclosed. But the technology won't let users illegally copy music.
InterTrust's software prevents music Web sites from running into the same
legal headaches as Napster, the popular music-sharing program that is facing
stiff legal challenges from record companies. InterTrust, of Santa Clara,
Calif., is one of many companies that are trying to come up with a
practical way to stop piracy of music online. "This is the beginning of
trying to figure out how to commercialize digital downloading," said Wendy
Goldberg, an AOL spokeswoman. Ms. Goldberg noted that AOL has previously
taken steps toward selling music online, but wouldn't discuss details.
[SOURCE: Wall Street Journal (B8), AUTHOR: Julia Angwin]
(http://interactive.wsj.com/articles/SB962146051947677128.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 Program (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) and Rachel Anderson (rachel( 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.

Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Debate America (www.debateamerica.org)
Oneworld US (www.oneworldus.org)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)

Communications-related Headlines for 6/27/2000

MERGERS
Group Says AT&T Purchase of MediaOne May Violate Agreement
With Time Warner (WSJ)
Qwest Divestiture Gets FCC Approval (WSJ)
WorldCom Deal Seen As Doomed (WP)
Doubts Are Being Voiced On Vivendi-Seagram Deal (NYT)

INTERNET
Web Sites Toot Their Horns Amidst Advertising Chill (WSJ)
Amazon Stock Performance Put Focus on Web's Value (WSJ)
High Technology Should Be Elementary to Pupils (USA)

LIFESTYLES
When Geeks Get Snide (NYT)
Judge Denies Hacker Mitnick's Request to Work in Media, Lecture (WSJ)

PRIVACY
Justices Agree to Review Privacy of Cellular Phones (NYT)

INTERNATIONAL
China Telecom May Buy Networks On Mainland to Double Its Presence (WSJ)

INFO TECH
Technological Advisory Council to Hold Fifth Meeting (FCC)

MERGERS

GROUP SAYS AT&T PURCHASE OF MEDIAONE MAY VIOLATE AGREEMENT WITH TIME WARNER
Issue: Mergers
A consumer advocacy group, Consumers Union, sent a letter Monday to the Federal
Trade Commission asking the FTC to examine whether AT&T's acquisition
of MediaOne Group Inc. may violate an agreement that restricts AT&T from
having more than a 9% stake in Time Warner. In 1997, Tele-Communications
Inc. (TCI) agreed to cap its stake in Time Warner at 9% in order for the FTC
to approve a Time Warner/Turner Broadcasting System Inc. merger. AT&T bought
TCI and had to abide by the agreement. Consumers Union argues that the
AT&T-MediaOne merger violates that ownership cap because MediaOne has a 25%
stake in Time Warner Entertainment, a subsidiary of Time Warner. The letter
is the latest attempt by consumer advocates to raise alarm about the recent
string of mergers they fear will limit choice in the telecommunications
marketplace.
[SOURCE: Wall Street Journal (B4), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB962062439564120330.htm)
See Also:
OWNERSHIP LINKS BETWEEN AT&T AND AOL-TIME WARNER
Issue: Mergers
From Pres Release: Consumers Union says that the ownership links between
Time Warner, Inc., and the recently-merged AT&T and MediaOne are a violation
of the conditions that the Federal Trade Commission set for a previous
merger

Communications-related Headlines for 6/26/2000

TELEPHONY
Toll Telephone Lines Seek to Lure Urban Poor (NYT)
Bell Atlantic Takes Advantage of an F.C.C. Rule Change (NYT)
AT&T Revamps Long-Distance Rate Hike Plan Changes (USA)

INTERNET
Study on Viability of Community Networks (NTIA)
Government To Create Big Web Site, Clinton Says (SJM)
Internet's Domain Administrator Is Sued (NYT)

JOURNALISM
At CBS, Lines Between News and Entertainment Grow Fuzzier (NYT)

MERGERS
FCC Broadens Its Investigation Of Aol, Time Warner Merger (WSJ)

TELEPHONY

TOLL TELEPHONE LINES SEEK TO LURE URBAN POOR
Issue: Telephone
In New York, special 540 toll lines on a local area code are used to lure
unemployed persons for a call that unexpectedly costs $19. The numbers are
advertised on fliers in low-income areas promising jobs. When called, the
recorded messages mention no specific jobs, just the telephone numbers for
job information lines at three hotels, two hospitals, and the health and
hospitals division of the hospital workers' union. Bell Atlantic, which
offers the 540 numbers in the New York City region, says it imposes strict
regulations, along with the New York State Public Service Commission. Ads
must state the cost of the call, and any call that can go over $3.50 must
state the cost at the outset and then give the caller 20 seconds to hang up.
But many of the 540 lines skirt these restrictions. And Bell Atlantic, which
gets 26 cents for the first minute of every call and seven cents per minute
thereafter, says it cannot check whether the jobs promised exist. "We can't
police all of them," John J. Bonomo, a Bell Atlantic spokesman, said.
Vendors come to the phone company with a proposal and they can charge
virtually any price. "If it's not obscene, unlawful or illegal, I can't
recall any case where we've turned them away," he said.
[SOURCE: New York Times, AUTHOR: Amy Waldman]
(http://www.nytimes.com/yr/mo/day/news/national/regional/ny-540-scam.html)

BELL ATLANTIC TAKES ADVANTAGE OF AN FCC RULE CHANGE
Issue: Telephone
By the end of July, Bell Atlantic will almost surely announce that it has
signed up a million long-distance customers in New York just since the
beginning of this year. That is something like a quarter-billion dollars in
annual revenue swiped from the likes of AT&T, WorldCom and Sprint in seven
months. Bell Atlantic and the other Baby Bells have accepted that the
Department of Justice and the FCC will be no pushovers for approving
in-region long distance service. By slogging through the hard, unglamorous
work necessary to win over the regulators rather than wailing over how
unfair it is, the Bells are getting all they really wanted from the
Telecommunications Act of 1996: a chance to jump into the pot of gold they
see in the long-distance market.
[SOURCE: New York Times, AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/00/06/biztech/articles/26neco.html)

AT&T REVAMPS LONG-DISTANCE RATE HIKE PLAN CHANGES
Issue: Telephony
AT&T is revisiting plans for a controversial rate hike that infuriated
consumers and regulators earlier this month. The long-distance company will
attempt to soften the impact of steep increases with new calling plans
intended to benefit consumers who make few long-distance calls. AT&T will
drop the $3 minimum fee it charged people who made few or no calls, but it
is raising per-minute rates by 13% to 56%. The company had recently withdrew
increases it had quietly put into effect at the same time it joined the
Federal Communications Commission in touting the reduction of access
fees. The new rate increase is intended to give consumers more options. Gene
Kimmelman of Consumers Union says the new rates are "a step in the right
direction" but disappointing, given that regulators have reduced AT&T's
costs by trimming fees it pays to local carriers.
[SOURCE: USAToday (2B),AUTHOR: Shawn Young]
(http://www.usatoday.com/usatonline/20000626/2399075s.htm)
See Also:
STATEMENT ON AT&T'S NEW CALLING PLANS FOR "LOW VOLUME USERS"
[SOURCE: Consumers Union]
(http://www.consumersunion.org/telecom/lowdc600.htm)

INTERNET

STUDY ON VIABILITY OF COMMUNITY NETWORKS
Issue: Digital Divide
Commerce Secretary William M. Daley today announced the award of a $100,000
contract to the Center for Civic Networking of Friday Harbor, Wash., to
study the sustainability of community networks, often the only means by
which communities without access to information technologies can get
information on health, public safety and community services. The contract is
one of several Clinton/Gore administration initiatives designed to help
close the nation's digital divide, the gap between Americans with access and
those without access to information technologies -- tools critical to
economic success and professional advancement. The project will focus on
locally-based, non-profit or public sector entities specializing in public
access networks supporting civic participation, community economic
development, health and human service delivery, and the arts. Topics to be
addressed include "Creating Demand Aggregation" and "Managing Organization
Change," among others.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/2000/ccnpr62200.htm)

GOVERNMENT TO CREATE BIG WEB SITE, CLINTON SAYS
Issue: Access to Government Information
President Clinton announced on Saturday that government is developing a Web
site that will make all online federal resources available at the click of a
mouse. The site, to be called firstgov.gov, will be created in 90 days or
less, President Clinton said on Saturday. "When it's complete, firstgov will
serve as a single point of entry to one of the largest, perhaps the most
useful, collection of Web pages in the entire world," Clinton said in what
was billed as his first Saturday Webcast to the nation. He said that by the
end of the year the government will make it possible for people to go online
to bid on, or apply for, some of the $300 billion in grants or $200 in
government contracts for goods and services. "Increasingly, we'll give our
citizens not only the ability to send and receive information but also to
conduct sophisticated transactions online," Clinton said.
[SOURCE: San Jose Mercury News, AUTHOR: Tim Ryan (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/134340l.htm
)

INTERNET'S DOMAIN ADMINISTRATOR IS SUED
Issue: Internet
Afternic.com has filed what is believed to be the first lawsuit challenging
the work of the Internet Corporation for Assigned Names and Numbers (Icann).
The company says Icann violated its own bylaws in refusing to approve
Afternic's application to become an accredited primary registrar for
Internet addresses. Afternic.com runs a Web site where people who already
own domain names can resell them. Icann did not act on the company's
application to become an official registrar because of the resale business.
But the two largest registrars of domain names, Network Solutions and
Register.com, have begun offering resale services similar to Afternic's.
"Icann believes that it has handled Afternic's application in an appropriate
manner, according to Icann policies and legal requirements, and consistently
with the manner in which other applications have been handled," Icann said.
[SOURCE: New York Times, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/06/biztech/articles/26doma.html)

JOURNALISM

AT CBS, LINES BETWEEN NEWS AND ENTERTAINMENT GROW FUZZIER
Issue: Journalism
CBS, which for years has had the oldest audience of any of the broadcast
networks, is trying to take advantage of its surging ratings for
"Survivor," especially among younger viewers. Every Thursday morning, the
network's news program, "The Early Show," gives over two full segments to
exploring the latest developments in "Survivor" including a half-hour panel
discussion and the first interview with the latest cast member cast adrift
by his or her island compatriots. [And that's what we mean by "synergy,"
boys and girls] Far from being concerned about blurring any lines between
news and entertainment, CBS executives have expressed nothing but enthusiasm
for the links being forged between "The Early Show," and the two reality
series from CBS's entertainment division. "It's an experiment well worth
taking on," said Andrew Heyward, the president of CBS News. "All I can say
is: Thank God for 'Survivor,' " said Steve Friedman, the senior executive
producer of "The Early Show." Citing ratings increases he said are directly
attributable to the show's association with "Survivor," Mr. Friedman said he
said he is already looking forward to the possibilities for more ratings
coattails from "Big Brother."
[SOURCE: New York Times, AUTHOR: Bill Carter]
(http://www.nytimes.com/library/financial/062600cbs-shows.html)

MERGERS

FCC BROADENS ITS INVESTIGATION OF AOL, TIME WARNER MERGER
Issue: Mergers
The Federal Communications Commission (FCC) has broadened their
investigation of America Online Inc.'s planned acquisition of Time Warner
Inc., even as shareholders for the two companies voted to approve the deal.
The FCC asked the two companies to provide information on everything from
the nitty-gritty of AOL's recent purchase of a 15% stake in TiVo Inc.,a
digital-video-recording company, to all documents relating to business plans
for the merged company. In an eight-page request, the FCC probes the nature
of AOL and Time Warner's relationships with each other and their partners,
and particularly focuses on whether these agreements prohibit competition.
The agency has requested information on AOL TV, the service that allows TV
users to surf the Web and chat online while watching shows. The regulators
also asked for information on the nature of nearly all of AOL and Time
Warner' partnerships and investments. To be approved, the merger must win
approval from U.S. and European antitrust regulators, who are examining the
deal.
[SOURCE: Wall Street Journal (B12), AUTHOR: Julia Angwin & Jill Carroll]
(http://interactive.wsj.com/articles/SB961780477864475613.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 Program (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) and Rachel Anderson (rachel( 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.

Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Debate America (www.debateamerica.org)
Oneworld US (www.oneworldus.org)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)

Communications-related Headlines for 6/23/2000

INTERNET REGULATION
Both Sides Talk of Victory in Cable Ruling (NYT)
U.S. Court Rules Against Online Pornography Law (NYT)
Lawsuits May Threaten Anonymity of Web Postings (USA)

MERGERS
Deutsche Telekom, U.S. Bells Line Up For Sprint Spinoffs (WSJ)

PRIVACY
US Judges' Assets Posted on Web (WP)
Federal Web Sites Get Privacy Check (WP)

WIRELESS
FCC Moves to Clear Way for Wireless Bidders (WP)

INTERNET REGULATION

BOTH SIDES TALK OF VICTORY IN CABLE RULING
Issue: Broadband
The Ninth Circuit Court of Appeals ruled that a local jurisdiction cannot
force a cable company that offers Internet access to share its
telecommunication lines with rival cable modem providers. "AT&T won the
battle but lost the war," said Scott Cleland, a regulatory analyst with the
Legg Mason Precursor Group, a Washington-based market research firm. "They
lost the broader fight over whether their service is regulated or not." The
appeals court defined the cable broadband business as a "telecommunications
service," a distinction some industry observers say may ultimately force
such businesses, including AT&T, to open their lines to competitors on a
national level. A central issue is whether cable modem operators are more
like cable companies, which are not required to open their lines to rivals,
or more like telephone companies, which must. The players in the debate are
likely to bring the dispute to the Federal Communications Commission now.
[SOURCE: New York Times (C2), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/00/06/biztech/articles/23net.html)
See Also:
AT&T WINS INTERNET DECISION
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-dyn/articles/A45735-2000Jun22.html)
JUDGE RULES FOR AT&T IN CABLE-ACCESS DISPUTE
[SOURCE: Wall Street Journal , AUTHOR: Julia Angwin And Jill Carroll]
(http://interactive.wsj.com/articles/SB961697557891174186.htm)
AT&T WINS CABLE ACCESS DECISION
[SOURCE: USA Today, AUTHOR: AP]
(http://www.usatoday.com/life/cyber/invest/in805.htm)
STATEMENT BY FCC CHAIRMAN KENNARD
Today's court decision recognizes that Congress established a national
framework to govern high-speed Internet access. We share the goal of
municipalities that consumers should be able to point, click and choose
their Internet service provider. Our policies will continue to promote
choice among providers for content and conduit, while fostering an
environment of investment and innovation.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/2000/stwek052.html)

U.S. COURT RULES AGAINST ONLINE PORNOGRAPHY LAW
Issue: Internet Regulation
The 1998 Child Online Protection Act (COPA), primarily intended to shield
children from online pornography, was dealt another blow yesterday when an
appellate court upheld a lower court's order against its enforcement. The
three-judge panel of the United States Court of Appeals of the Third Circuit
issued a unanimous decision, finding that the law fell well short of First
Amendment standards, as had been argued by the ACLU. The justices called
the decision an agonizing conflict between the right of free speech and the
duty to watch over children. The justices also recognized that the law was a
reflection of an ongoing struggle to devise laws compatible with the
Internet's instant access and global reach.
"We will affirm the district court's grant of a preliminary injunction
because we are confident that the A.C.L.U.'s attack on COPA's
constitutionality is likely to succeed on the merits," the circuit court
said. COPA requires commercial web sites with material deemed harmful to
minors to collect a credit card number or other age verification. Penalties
for noncompliance included six months in jail and $50,000 in fines. The law
has never been enforced.
[SOURCE: New York Times (A16), AUTHOR: David Stout]
(http://www.nytimes.com/library/tech/00/06/biztech/articles/23privacy.html)
See Also:
APPEALS COURT STRIKES DOWN CDA II
The U.S. Court of Appeals for the Third Circuit has ruled that the Child
Online Protection Act (COPA) is unconstitutional. The court's decision finds
that COPA impermissibly restricts the First Amendment free speech rights of
web publishers. The challenge was brought by EPIC, ACLU and EFF on behalf of
a coalition of online publishers. See EPIC's COPA Litigation Page
(http://www.epic.org/free_speech/copa/) for the history of the litigation.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

LAWSUITS MAY THREATEN ANONYMITY OF WEB POSTINGS
Issue: Free Speech/Internet
Corporations are increasingly striking back against their online critics in
court, threatening the Internet's status as a cauldron of anonymous free
speech. Internet message boards serve as platforms for investors to
speculate about a company's prospects, and employees to vent their anger about
the workplace. The forums have exploded along with the Net and Americans'
stock holdings. As a result, companies in droves are suing the kibitzers,
claiming postings are libelous or come from workers disclosing proprietary
information. Often, they complain the writers are trying to manipulate stock
for personal gain. "Companies are tired of taking it on the chin," says
Bruce Fischman, a Florida lawyer who represents about 50 firms in such
lawsuits. After filing a "John Doe" lawsuit, a firm subpoenas the message
board to learn the critics' names or e-mail addresses. Until recently,
Yahoo, the most popular soapbox, complied instantly. It now provides 15
days' notice so defendants can try to guard their identities in court. Ann
Beeson of American Civil Liberties Union says firms should have to virtually
prove their cases before names are released, saying company bashers are
entitled to the same anonymity courts have afforded political speakers. But
in a first-of-its-kind ruling, Judge Eleanor Schockett rejected that view
last month, ordering Yahoo and AOL to identify eight John Does who suggested
Fort Lauderdale's J. Erik Hvide might be guilty of securities violations.
The John Does are appealing, but, if upheld, the ruling could have a
"chilling effect" on Web chatter, says their lawyer, Chris Leigh.
[SOURCE: USA Today (1B), AUTHOR: Paul Davidson]
(http://www.usatoday.com/money/mds6.htm)

MERGERS

DEUTSCHE TELEKOM, U.S. BELLS LINE UP FOR SPRINT SPINOFFS
Issue: Mergers
The fate of WorldCom's proposed acquisition of Sprint is uncertain, and
Sprint may be back on the block, if the pending deal fails to go through.
Regulators are becoming increasingly resistant to the pending deal. To
satisfy regulators, WorldCom officials have proposed selling all or part of
Sprint's long-distance business and its Internet backbone. If the deal is
derailed, Sprint, the nation's No. 3 long-distance company, will likely
still need a partner in the rapidly consolidating telecommunications
industry. Sprint's assets, which analysts value at between $45 billion and
$50 billion, could be attractive to a number of companies, from German
telecommunications leader Deutsche Telekom AG to the Baby Bell phone
companies. Sprint's long-distance business serves more than 15 million
business, residential and wholesale customers, and its Internet unit moves
data traffic for large business customers including General Electric,
America Online and EarthLink. Deutsche Telekom has been looking for an U.S.
foothold and has the money to do a deal. Buying Sprint's long-distance and
Internet backbone business would give Deutsche Telekom access to a
well-known consumer brand and a state-of-the-art nationwide network. For the
Bells, all of which are trying to win regulatory approval to enter the
lucrative long-distance market, acquiring Sprint would give it control over
a major long-distance network as well as boost its customer base.
[SOURCE: Wall Street Journal (B6), AUTHOR: Deborah Solomon & Nicole Harris]
(http://interactive.wsj.com/articles/SB961714393716351158.htm)

PRIVACY

US JUDGES' ASSETS POSTED ON WEB
Issue: Privacy
Federal law requires federal judges, like other high-ranking federal
officials, to report their financial holdings and estimated worth. So when
APBnews.com was denied access to the 1998 financial disclosure reports of
about 1,600 federal judges they sued the federal judiciary and eventually
won the right to post these reports on the Internet. APBnews.com has since
posted reports for about 800 judges and plans to post the others online as
soon as possible. Meanwhile, Chief Justice William H. Rehnquist, Judicial
Conference chairman, has stated that judges may ask Congress to change the
financial disclosure law to protect them from such digital exposure. As of
now, the Administrative Office permits judges to suggest deletions of
sensitive information that could compromise their safety.
[SOURCE: Washington Post (A29), AUTHOR: AP]
(http://washingtonpost.com/wp-dyn/articles/A45761-2000Jun22.html)

FEDERAL WEB SITES GET PRIVACY CHECK
Issue: Privacy
The Clinton administration issued new rules yesterday in an attempt to make
Federal Web sites less intrusive. Jacob Lew, director of the Office of
Management and Budget, released the memo a day after the White House
revealed that the Office of National Drug Control Policy site had used
"cookies" and other technologies to monitor the actions of Internet
explorers on the World Wide Web -- a practice which might have violated
federal privacy laws. Lew stated "[T]he presumption should be that
'cookies' will not be used at federal web sites" or by federal contractors.
They can be used, Lew wrote, only with "clear and conspicuous notice" to
visitors, and if there are "a compelling need to gather the data on the
site," safeguards for handling the information collected, and "personal
approval by the head of the agency." The memo also reminded the heads of
each agency that they are required to establish privacy policies and comply
with them. According to the memo, more complete details of the privacy
practices will be made available with part of the budget submissions this
fall.
[SOURCE: Washington Post (E2), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-dyn/articles/A45739-2000Jun22.html)

WIRELESS

FCC MOVES TO CLEAR WAY FOR WIRELESS BIDDERS
Issue: Wireless
The Federal Communications Commission ruled yesterday that it will allow TV
stations to give up their current broadcast channels to make way for
communications companies that wish to use those same airwaves for mobile
telephones or wireless Internet access. The potential bidders, however, are
concerned that the allowance does not guarantee the more than 100 TV
stations occupying those airwaves would make way for them. Under the
framework created by the FCC ruling, a TV station would close down its
current analog broadcast operation and move to a digital channel. But the
station would not have much of an audience because very few consumers have
purchased the $4,000 television sets that are needed to pick up digital TV
signals. The digital signals are not yet available over cable. The FCC wants
every TV station in the country to move to the digital channels assigned to
them three years ago. The move would free up huge chunks of airwaves for
wireless uses. But few in the broadcasting industry are optimistic that such
a massive digital migration will be completed by the government's
deadline. The wireless companies had asked the FCC to delay the auction until
the agency could come up with a plan for clearing the TV stations from the
airwaves between channels 60 and 69. In issuing the ruling, the FCC
confirmed that the auction, delayed once already, would proceed as planned
on Sept 6. Some wireless telecommunications companies want to use the
valuable chunk of spectrum to develop 3G, or third-generation wireless
services such as high-speed Internet access. The development of 3G is one
area where the United States trails both Europe and Japan.
[SOURCE: Washington Post (E2), AUTHOR: Christopher Stern]
(http://washingtonpost.com/wp-dyn/articles/A45802-2000Jun22.html)
See Also:
FCC AFFIRMS RULES FOR THE 700 MHZ BAND
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/2000/nrwl0017.html)

--------------------------------------------------------------
...and we're outta here. Thanks for tuning in; we'll see you again Monday.

(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 Program (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) and Rachel Anderson (rachel( 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.

Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Debate America (www.debateamerica.org)
Oneworld US (www.oneworldus.org)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)

Communications-related Headlines for 6/22/2000

PRIVACY
New Technology Is Aimed at Increasing Web Privacy (NYT)
Pretty Poor Privacy: An Assessment of P3P and Internet Privacy
(EPIC)

BROADCASTING
Broadcast Ownership Rules (FCC)
700 Applications For Low Power FM Radio Construction Permits (FCC)

MERGERS
Europe Resists Big U.S. Mergers (WP)
A Scramble To Salvage Phone Deal (NYT)
BT May Buy Media Companies, Says Openworld Exec (SJM)

WIRELESS
U.S. Wireless Access Needs A Touch Up (WSJ)

INTERNET REGULATION
Reciprocal Compensation Adjustment Act of 2000 (House)

PRIVACY

NEW TECHNOLOGY IS AIMED AT INCREASING WEB PRIVACY
Issue: Privacy
A new technology called Platform for Privacy (P3P) that would alert computer
users before they visit Web sites that collect more personal information
than they are willing to share was unveiled yesterday by major Internet
companies and an online civil liberties group, the Center for Democracy and
Technology. The technology has been under development for about three years
by the World Wide Web Consortium, AT&T labs and other major companies like
IBM, Microsoft and America Online. Nevertheless, it was immediately
denounced by some privacy advocates as a way for companies to avoid new laws
and a tool that would give consumers a false sense of security. According to
Daniel J. Weitzner of the World Wide Web Consortium, which develops open
standards to promote universal Web access and interoperability between web
sites and different technologies, the goal of P3P is to give users on the
web more control, and to make privacy policies easier to find and to
understand. P3P set standards to allow Internet browsers to automatically
read privacy policies that have been posted on Web sites using the new
standard. The browsers then will go only to sites that follow the
preferences pre-selected by the computer users. However, for the technology
to work, however, it will have to be put into effect by the millions of Web
sites on the Internet.
[SOURCE: New York Times (C6), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/06/cyber/articles/22privacy.html)
See Also: Clinton Supports Move to Protect Consumer Privacy on the Internet
[SOURCE: Wall Street Journal (B14), AUTHOR: Glenn R. Simpson]
(http://interactive.wsj.com/articles/SB961623432968249771.htm)

PRETTY POOR PRIVACY: AN ASSESSMENT OF P3P AND INTERNET PRIVACY
Issue: Privacy
EPIC and Junkbusters have released their report on the Platform for Privacy
Preferences (P3P), "Pretty Poor Privacy: An Assessment of P3P and Internet
privacy". The report concludes that there is little evidence that P3P will
improve privacy protection on the Internet and recommends adopting privacy
standards built on Fair Information Practices and genuine privacy-enhancing
technologies.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/reports/prettypoorprivacy.html)

BROADCASTING

BROADCAST OWNERSHIP RULES
Issue: Broadcasting
The FCC has released a number of items related to the ownership rules for
broadcast outlets including its biennial review of rules, a notice of
proposed rulemaking (NPRM) on the dual network rule and a NPRM on the
elimination of experimental broadcast ownership restrictions. All documents
are available online from the FCC's homepage at the URL below.
[SOURCE: FCC]
(http://www.fcc.gov)

700 APPLICATIONS FOR LOW POWER FM RADIO CONSTRUCTION PERMITS
Issue: Radio
Press Release: The Federal Communications Commission received 769 low power
FM radio applications from community-based organizations and state and local
governments in Alaska, California, District of Columbia, Georgia, Indiana,
Louisiana, Maine, Mariana Islands, Maryland, Oklahoma, Rhode Island and
Utah. Today the Commission is issuing a Public Notice listing low power FM
radio applicants who completed forms requesting a new low power FM radio
station. The FCC's preliminary count of the applications received in each of
the first ten states breaks down as follows: Alaska (27), California (309),
District of Columbia (4), Georgia (109), Indiana (73), Louisiana (66), Maine
(12), Maryland (17), Oklahoma (61), Rhode Island (25) and Utah (19). The
second filing period, which will begin at the end of August, will be
announced by Public Notice at the end of July. At that time, the Commission
will take applications from the following states and territories:
Connecticut, Illinois, Kansas, Michigan, Minnesota, Mississippi, Nevada, New
Hampshire, Puerto Rico, Virginia, Wyoming.
A complete list of the applicants will be posted on the FCC website at
www.fcc.gov or a summary will be available on Wednesday, June 22, 2000.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/2000/nrmm0029.html)

MERGERS

EUROPE RESISTS BIG U.S. MERGERS
Issue: Mergers
The unprecedented scrutiny of American communications-related mergers is
partially a symptom of Europe's coming late to the Internet. While Europe is
gaining ground on the United States in Internet access and use, the
companies that control the global computer system's basic infrastructure
remain a handful of dominant American firms. Fifty to Eighty percent of all
Internet traffic originating in Europe travels to the United States,
according to a recent commission statement. "The Internet is not a global
net," said an executive with Spain's Telefonica. "It's an American net with
international extensions." The dominance of the U.S. few has led to the EU's
executive body, the European Commission, to cast a critical eye on the
implications for Europe of the America Online/Time-Warner and
Sprint/WorldCom deals. The commission also, last month, launched a probe of
Boeing's purchase of Hughes Electronics' Satellite operations and
Microsoft's effort to take a majority stake in a British cable operator.
While European officials deny that there is a nationalist cast to the
scrutiny of the U.S. deals -- citing their desire to keep any company from
gaining "gatekeeper status" -- it is equally evident that the US-centered
Internet is growing wearisome for the wider wired world.
[SOURCE: Washington Post (E01), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A37332-2000Jun21.html)

A SCRAMBLE TO SALVAGE PHONE DEAL
Issue: Merger
Increasing pressure from regulators on both sides of the Atlantic may lead
WorldCom to consider selling Sprint's entire long-distance unit to gain
approval of its $115 billion deal to acquire the company. While negotiations
continue between the WorldCom and the Justice Department, which is reviewing
the deal's antitrust implications in the United States, the European
Commission's competition ministry has already indicated that wishes withhold
approval. European regulators are worried that the merged company would have
a stranglehold on Internet traffic in Europe. The Justice Department's main
concern is about the power a combined Sprint-WorldCom would hold over the US
long-distance market. With a desire to appease regulators, WorldCom is now
considering a plan to sell Sprint's entire long-distance business, in
addition to Sprint's Internet operation. But such moves would skew the
financial plan that underpinned the acquisition in the first place.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel And Andrew Ross Sorkin]
(http://www.nytimes.com/library/financial/062200mci-sprint.html)

BT MAY BUY MEDIA COMPANIES, SAYS OPENWORLD EXEC
Issue: Mergers
According to Marc Deschamps, Chief operating officer for British
Telecommunication's (BT) broadband Internet company Openworld, BT is
shopping for media companies to provide content and is willing to make a
deal the size of the AOL-Time Warner merger. Deschamps said that BT intends
to be aggressive in making acquisitions, yet there are still other options
for securing content. Openworld has already contracted 75 companies to
supply content such as news, video clips and software applications for its
Internet service, which it launches to small businesses in July and to
consumers soon after. The majority of these deals are based on a licensing
or revenue-sharing basis and include only one joint venture, with travel
reservations company Amadeus. Deschamps also said that BT is exploring the
option of floating Openworld.
[SOURCE: San Jose Mercury News (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/044731.htm)

WIRELESS

U.S. WIRELESS ACCESS NEEDS A TOUCH UP
Issue: Wireless
Americans are in real backwater when it comes to wireless access to the
Internet. The majority is unaware that they can surf the Web on data-enabled
cell phones, while millions of Japanese and European users are already doing
just that. While a handful of cellular providers in the U.S. have started to
take interest in wireless Internet, the services are marred by technical
glitches, and don't yet come close to delivering. Take the Sprint network,
for instance. It crawls at a pace of only 14.4 kilobits per second, or about
one-fourth the speed of a common 56-kilobit modem. Sprint's service, like
many others based on a standard called the Wireless Application Protocol, or
WAP, blocks access to sites that haven't rewritten their pages in the
special WAP format -- one that is purely text-based. That limits wireless
Internet users to a fraction of all Web sites, and reduces the Web to gray
menus of tiny letters and numbers. Sprint has acknowledged that it's still
learning what users want, and has vowed to improve speeds, eliminate the
dial-up lag, and let users customize start-up menus.
[SOURCE: Wall Street Journal (B1), AUTHOR: David Hamilton]
(http://interactive.wsj.com/articles/SB961626460243411062.htm)

INTERNET REGULATION

RECIPROCAL COMPENSATION ADJUSTMENT ACT OF 2000
Issue: Telephone/Internet Regulation
Live Webcast -- Thursday, June 22, 2000 11:00 a.m. in2123 Rayburn House
Office Building Subcommittee on Telecommunications, Trade, and Consumer
Protection legislative hearing. This hearing will focus on H.R. 4445, to
exempt from reciprocal compensation requirements telecommunications traffic
to the Internet. Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/24e76b0841421cc085256905006aaa4a?OpenDocument)

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

(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 Program (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) and
Mugo Macharia (mugo( 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.

Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Debate America (www.debateamerica.org)
Oneworld US (www.oneworldus.org)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)

Communications-related Headlines for 6/21/2000

POLITICAL DISCOURSE
Speech: Campaigns, Broadcasters, and the Public Interest (FCC)

INTERNET
There's No Free Hollywood (NYT)
Book Publishers Aim To Get Ahead Of Piracy Game (WSJ)
British Telecom looks To Collect For Hyperlinks (WSJ)
EU Set To Block Sprint's Merger With WorldCom (SJM)
Vivendi Vis-a-Vis the Internet (NYT)
Reciprocal Compensation Adjustment Act of 2000 (House)
College Dorms Getting Digital Video (WP)

EDTECH
Instructors Say Online Courses Involve More Work at
Same Pay (CyberTimes)

DISABILITIES
Speech: The Americans With Disabilities Act: Lessons for
the Virtual World (FCC)

ANTITRUST
Microsoft Wins Year's Reprieve From Penalties (NYT)

POLITICAL DISCOURSE

SPEECH: CAMPAIGNS, BROADCASTERS, AND THE PUBLIC INTEREST
Issue: Political Discourse
Remarks of Commissioner Gloria Tristani: "I can't help but wish that groups
like the Alliance for Better Campaigns had no reason to exist. They only
exist because not all broadcasters take their civic and legal
responsibilities as seriously as the broadcasters here do. And they only
exist because those of us in public life are not fulfilling our
responsibility to hold those broadcasters accountable. The sad reality is
that we wouldn't be here unless it was 'news' that some broadcasters are
doing what all broadcasters ought to be doing as a matter of course." The
public interest standard must have some substantive meaning. The public
interest requirements should be specific. The public interest standard
should be a "safety net" to protect the public against those broadcasters
who might be tempted to avoid their obligations in the absence of a rule.
The public interest standard should apply to every broadcast station, not to
the industry as a whole. The public interest standard should protect and
enrich our children. The public interest standard should promote diversity
over the public airwaves. But perhaps most importantly, the public interest
standard should promote an open and robust debate on issues of public concern.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Tristani/2000/spgt008.html)

INTERNET

THERE'S NO FREE HOLLYWOOD
Issue: Intellectual Property
[Op-ed] Movies are next in line for those "causal thieves" that are now
stuffing their hard drives with audio files found on the Internet [see
COLLEGE DORMS GETTING DIGITAL VIDEO below]. Congress and the courts must
protect people's privacy while ensuring that creative artists and
distributors can transport movies and music without their valuable works
being burglarized. If copyright can no longer protect the distribution of
the work they produce, who will invest immense sums to create films or any
other creative material of the kind we now take for granted? "Internet
marauders" argue that copyright is old-fashion, a relic of the non-Internet
world. Valenti concludes: But suppose some genius invented a magic key that
could open the front door of every home in America and wanted to make the
keys available to everyone under a canopy sign that read, "It's a new world
-- take what you want." Wouldn't it be the responsibility of our society to
try to control the use of that key?
[SOURCE: New York Times (A27), AUTHOR: Jack Valenti, Motion Picture Association]
(http://www.nytimes.com/yr/mo/day/oped/21vale.html)

BOOK PUBLISHERS AIM TO GET AHEAD OF PIRACY GAME
Issue: Intellectual Property
Book publishers are not about to sit back and let what has happened to the
music industry happen to them. They have been watching anxiously as their
peers in the music business have been upended by digital file-trading
programs like Napster that allow Internet users to pass around free copies
of CDs. In an attempt to stem that tide, they are trying to control the
direction of electronic books themselves and to establish piracy
protections. Publishers say it's only a matter of time
before copying programs like Napster start penetrating their industry,
making unauthorized copies of electronic books just as publishers expand
their e-book offerings. If the programs prosper, book publishers could stand
to lose a chunk of revenue in the fast-growing e-book market. Publishers
worry that if e-book piracy catches on, print sales could eventually be
threatened as well. If getting unauthorized e-books through the Web becomes
widespread, "that starts to make people who buy the hard-copy books feel
foolish: 'Why am I paying for it when I can get it for
free?"' says Ken Mifflin, a media-industry consultant at Andersen Consulting.
[SOURCE: Wall Street Journal (B1), AUTHOR, Erin White]
(http://interactive.wsj.com/articles/SB961545396621133614.htm)

BRITISH TELECOM LOOKS TO COLLECT FOR HYPERLINKS
Issue: Intellectual Property
British Telecommunications PLC claims to have created hyperlink technology,
a basic building block of the Web, and now plans to pursue licensing fees
for its technology. BT said U.S. Internet-service providers will be its
first targets. BT claims that three years ago it discovered, during a
routine review of its 15,000 patents, that it owned a U.S. patent covering
hyperlink technology. Industry experts greeted the news with surprise and
skepticism. "It's like saying that Sikorsky helicopter should pay Leonardo
da Vinci's descendants for the concept of the helicopter," said Mike Jeremy,
a telecommunications analyst at ING Barings in London. Hyperlinks technology
allows users to click on an image or text to move between Web pages. In
the 1970s, when BT came up with the technology in conjunction with a
dial-up information service project with the British post office, of which
BT was then a part, the Web didn't exist.
[SOURCE: Wall Street Journal (B5), AUTHOR,Stephanie Gruner And David
Pringle]
(http://interactive.wsj.com/articles/SB961505642691544787.htm)

EU SET TO BLOCK SPRINT'S MERGER WITH WORLDCOM
Issue: Merger
Antitrust authorities for the European Union will recommend that the merger
of WorldCom and Sprint be blocked after concluding that the $129 billion
deal would place too much of the Internet within the network of a single
company. The European Commission's Competition Directorate-General has
rejected the companies' proposal to sell Sprint's Internet business to
alleviate regulators' concerns. According to the Statement of Objections,
the new company would carry as much as 45
percent of the world's Internet traffic. "It's over," said a senior official
of the Competition Directorate-General. "This deal is finished. Possibly,
the parties will withdraw." The proposed merger has raised concerns from
regulators on both sides of the Atlantic from the start. William Kennard,
chairman of the Federal Communications Commission, criticized the deal the
day it was announced, noting that it would combine the nation's second- and
third-largest long-distance telephone companies. And U.S. antitrust experts
have recommended that the Justice Department also block the deal. The
Competition Directorate-General's decision is likely to be formally adopted
at the European Commission's July 5 meeting.
[SOURCE: Washington Post (A1), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A29907-2000Jun20.html)

VIVENDI VIS-A-VIS THE INTERNET
Issue: Mergers
This is the main telecommunications asset to be owned by the new Vivendi
Universal: 52 percent of Cegetel, which is the No. 2 long-distance provider
in France and also the owner of 80 percent of France's No. 2 cellular phone
carrier. Vivendi Universal would also own Canal Plus, a European pay
television company with 14 million subscribers, 25 percent of a British
satellite television operation and 50 percent of the Vizzavi European
Internet portal, which began its first operations, in France, Monday night.
Vizzavi is meant to be an Internet portal with three legs: wireless devices,
personal computers and interactive televisions. But Vizzavi barely exists
and neither Seagram or Vivendi are providing much Internet access to
computers in any country. It will be years before audio and video files can
be delivered to wireless phones. "I don't necessarily look at this deal as
one where the whole is worth more than the sum of its parts," one United
States media analyst said yesterday on the condition of anonymity.
[SOURCE: New York Times (C8), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/financial/062100vivendi-portal.html)
See Also:
MELDING CULTURES IS NEXT STEP IN SEAGRAM DEAL
[SOURCE: New York Times (C1), AUTHOR: Andrew Ross Sorkin]
(http://www.nytimes.com/library/financial/062100seagram-vivendi.html)

RECIPROCAL COMPENSATION ADJUSTMENT ACT OF 2000
Issue: Telephone/Internet Regulation
Thursday, June 22, 2000 11:00 a.m. in2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection
legislative hearing. This hearing will focus on H.R. 4445, to exempt from
reciprocal compensation requirements telecommunications traffic to the
Internet. Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

COLLEGE DORMS GETTING DIGITAL VIDEO
Issue: Internet
Some universities have begun projects to wire dormitories with high-quality
online video networks. Northwestern University is in the middle of a $2
million network upgrade that will deliver digital video to all of its dorms,
allowing students to watch lectures or other instructional videos without
ever leaving their homes away from home [Kevin, I know you wish they had this
when you were there]. "What the Internet did with its present capability, it
made it possible for anyone to become a publisher," said Mort Rahimi,
Northwestern's vice president of information technology. "The environment we
are creating at Northwestern is going to allow each one of our students at
Northwestern and our faculty members ... to become producers." The video
capability was made possible through Northwestern's participation in
Internet2, an experimental computer network -- currently available only to
the academic world -- with speeds 45,000 times faster than the best
telephone modems. Janet Poley, president of the American Distance Education
Consortium in Lincoln (NE) notes that one of the challenges is reaching
students who don't live in dorms -- a majority of this country's college
population.
[SOURCE: San Jose Mercury News, AUTHOR: Nicole Ziegler Dizon (Associated
Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/118764l.htm)

EDTECH

INSTRUCTORS SAY ONLINE COURSES INVOLVE MORE WORK AT SAME PAY
Issue: EdTech
Many college and university professors are taking on the new challenge of
teaching courses online, but they are finding that it takes a lot more time
and work than traditional classroom courses. The National Education
Association recently released a survey that found 53% of participants said
distance learning courses take more time to prepare for and deliver than
traditional classes. Faculty members are concerned that the extra workload
will not be accompanied by a pay raise, the survey found. The survey covered
all major forms of distance learning, including video feeds and the more
common Web- and e-mail-based courses. Eighty-three percent of the
instructors responding to the NEA survey said they contact their students at
least once a week by e-mail, and often communicate more frequently than that.
[SOURCE: CyberTimes, AUTHOR: Rebecca Weiner (rweiner( at )nytimes.com)]
(http://www.nytimes.com/library/tech/00/06/cyber/education/21education.html)

DISABILITIES

SPEECH: THE AMERICANS WITH DISABILITIES ACT: LESSONS FOR THE VIRTUAL WORLD
Issue: Disabilities/Access
Chairman Kennard's Remarks for the 10th Anniversary of the Americans with
Disabilities Act, Torch Relay. "Increasingly, Americans live and work in
another world. It is not a world of bricks and mortar. It's a world of
billions and billions of digital bits that move at the speed of light over
fiber optic networks and through the airwaves - that reside in servers and
are manipulated by software. It is an exquisitely complex world that we call
the World Wide Web. And the fact is that those who have access to this world
and can navigate through it with ease have a huge advantage in our society
and in our economy....
Too many Americans with disabilities are being cut off from this virtual
world. Americans who need access to the technology that can bring them jobs
and information and education in ways undreamed of just a few years ago.
This is the real power of the New Economy. And the real challenge of the New
Economy is to make sure that this wondrous technology uplifts the lives of
every American - regardless of age or ability."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/2000/spwek015.html)

ANTITRUST

MICROSOFT WINS YEAR'S REPRIEVE FROM PENALTIES
Issue: Antitrust
Judge Thomas Penfield Jackson delayed the restrictions he had imposed on
Microsoft until a higher court affirms them. The restrictions were scheduled
to take effect in 11 weeks and may be delayed now for one year or more.
Microsoft was jubilant; for weeks the company had been arguing that the
conduct restrictions would cause grievous harm to the company and its
customers. The Justice Department lauded Judge Jackson for referring the
case to the high court but added, "Given the district court's decision to
stay the remedy during the appeal process, the direct appeal to the Supreme
Court is of particular importance to the national interest." It is now up to
the Supreme Court to decide whether to take the case directly, or to let an
appeal be heard first by the Court of Appeals.
[SOURCE: New York Times (A1), AUTHOR: Joel Brinkley]
(http://www.nytimes.com/library/tech/00/06/biztech/articles/21soft.html)
See Also:
MICROSOFT CASE SENT TO SUPREME COURT
[SOURCE: Washington Post (A1), AUTHOR: James V. Grimaldi]
(http://washingtonpost.com/wp-dyn/articles/A30327-2000Jun20.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 Program (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) and Rachel Anderson (rachel( 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.

Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Debate America (www.debateamerica.org)
Oneworld US (www.oneworldus.org)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)

Communications-related Headlines for 6/20/2000

MERGERS
French Company Agrees to a Deal to Buy Seagram (NYT)
AT&T Paying $3.3 Billion To Add Wireless Systems (NYT)
Safeguards Proposed by Disney Should be Applied to all
Content Providers (CME)

EDTECH
Bush Raises Cash and Discusses Education Technology (NYT)

INTERNET
Reciprocal Compensation Adjustment Act of 2000 (House)
How ICANN Does It (USA)
Letter From Syria (WP)

ECOMMERCE
Another Industry Group Tackles Online Privacy Problem (CyberTimes)
Conflicting Napster Predictions Evoke Errors in Foretelling Impact
of VCR (WSJ)
Music Companies Are Hoping Downloads For Fees Can Prove
as Popular as Free (WSJ)

INFOTECH
Technological Advisory Council (FCC)

MERGERS

FRENCH COMPANY AGREES TO A DEAL TO BUY SEAGRAM
Issue: Mergers
Vivendi, the French water utility, is about to start pumping something else
into homes. The company will pay ~$34 billion in stock for Seagram, the
spirits and entertainment company. [Is Bruce Willis included in the deal?]
Seagram holdings include Absolut Vodka, Universal Studios, Polygram Records,
a television production company and theme parks. The new company will be
called Vivendi Universal and will be based in Paris [France, not Texas].
Vivendi plans to sell off Seagram's liquor business. Vivendi also owns a
mobile telephone operation in France, a pan-European Internet portal,
Vizzavi, and Canal Plus, a pay television company. The proposed deal is a
bet by both Vivendi and Seagram that by combining popular content with a
powerful distribution system, especially the next generation of wireless
Internet services in Europe, it can create a company worth more combined
than by working separately.
[SOURCE: New York Times (A1), AUTHOR: Fabrikant & Sorkin]
(http://www.nytimes.com/library/financial/062000seagrams-vivendi.html)
See Also:
THE SUN IS SETTING ON SEAGRAM EMPIRE
[SOURCE: New York Times (C1), AUTHOR: Alex Berenson]
(http://www.nytimes.com/library/financial/062000seagrams-bronfman.html)
NO TRACE OF ANTI-HOLLYWOOD BIAS IN FRENCH PURCHASE OF UNIVERSAL
"The French always have been the most irate about American domination of the
movies, so to think that now it will be the French who are financing these
American movies, well, you'd have to say that's ironic," said Peter Bart,
editor of Variety.
[SOURCE: New York Times (C12), AUTHOR: Rick Lyman]
(http://www.nytimes.com/library/financial/062000seagrams-studio.html)
VIVENDI CONFIRMS SEAGRAM PURCHASE FRENCH FIRM NOW POWERFUL PLAYER IN
ENTERTAINMENT
[SOURCE: USAToday (1b), AUTHOR: Vivienne Walt and David Lieberman]
(http://www.usatoday.com/usatonline/20000620/2379191s.htm)

AT&T PAYING $3.3 BILLION TO ADD WIRELESS SYSTEMS
Issue: Wireless
AT&T will pay $3.3 billion for wireless telephone systems in Houston (from
PrimeCo), San Diego (from GTE) and San Francisco (from Vodafone). The
purchases will add 1.3 million customers and 1,400 employees to AT&T's
fast-growing wireless business. The impetus behind the deal came from
regulatory requirements that Vodafone, GTE and Bell Atlantic shed
overlapping wireless properties as they create Verizon Wireless.
[SOURCE: New York Times (C15), AUTHOR: Simon Romero]
(http://www.nytimes.com/)
See Also:
AT&T WIRELESS BUYS SERVICE IN 3 MAJOR CITIES MARKET COVERAGE GETS BOOST
[SOURCE: USAToday (3B), AUTHOR: Shawn Young]
(http://www.usatoday.com/usatonline/20000620/2379133s.htm)

SAFEGUARDS PROPOSED BY DISNEY SHOULD BE APPLIED TO ALL CONTENT PROVIDERS
Issue: Mergers
From Press Release: In a formal filing with the Commission of the European
Communities (representing the European Union, or EU), the Walt Disney
Company has expressed grave reservations about the anti-competitive impact
of the proposed AOL-Time Warner merger on the emerging broadband market. "In
the new market for integrated Internet services," Disney's EU submission
declares, the combined AOL Time Warner (coupled with its vast EMI music
holdings) "will operate a 'walled garden' serving to discriminate against
third party unaffiliated content and precluding access by third party
content suppliers to users of the AOL/TW/EMI service." Responding to these
and other objections to AOL-Time Warner's plans, the European Commission
announced that it will now begin a more rigorous, four-month Phase II
investigation of the proposed merger. Disney requested "that the Commission
consider the monopolist bottleneck distribution features of AOL/TW/EMI and,
if appropriate, require the segregation of the provision of content from the
distribution channel. Internet distribution is an essential facility (not
unlike phone lines, for instance) and open and non-discriminatory access for
all content providers should be guaranteed."
Disney's filing also calls for the following principles to govern the new
broadband environment: 1) Equal treatment of downstream bandwidth, system
throughput, and
data pass-through; 2) Full functionality of return-path transactions, with
equitable
handling of upstream traffic (i.e., transmissions from outside parties,
including subscribers themselves); 3) Nondiscriminatory menus, program
guides, navigation aids, and screen position and placement; 4) Equal caching
of content (i.e., local storage of data to expedite delivery) and 5)
Comparable point-and-click functionality for enhanced/interactive
TV implementations.
For more information, contact Jeff Chester (jeff( at )cme.org)
[SOURCE: Center For Media Education]
(http://www.cme.org/publications/press.html)

EDTECH

BUSH RAISES CASH AND DISCUSSES EDUCATION TECHNOLOGY
Issue: EdTech
"The goal ought not to be how many classrooms are wired. The goal is how are
we effectively teaching children," said Gov George Bush (R-TX) yesterday
during a campaign swing through Washington and California. Gov Bush
criticized the E-rate program saying it has given local school districts too
little flexibility in their use of the funds, creating a system "hidebound
by regulations." He called for loosening the regulations and for another $80
million/year for the Department of Education to study the best ways of using
technology in classrooms.
[SOURCE: New York Times (A20), AUTHOR: Frank Bruni]
(http://www.nytimes.com/library/politics/camp/062000wh-bush-edu.html)

INTERNET

RECIPROCAL COMPENSATION ADJUSTMENT ACT OF 2000
Issue: Telephone/Internet Regulation
Thursday, June 22, 2000 11:00 a.m. in2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection
legislative hearing. This hearing will focus on H.R. 4445, to exempt from
reciprocal compensation requirements telecommunications traffic to the
Internet. Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

HOW ICANN DOES IT
Issue: Internet
ICANN, the Corporation for Assigned Names and Numbers, coordinates the
assigning of domain names (such as SomeAddress.com) on the Internet. For
each domain, ICANN also assigns a numerical addressee (123.23.2.7) to which
it corresponds. This centralized addressing system is what allows messages
-- whether text, Web, audio or video -- to be transmitted across the network.
The system is based on the Internet Protocol, simple rules that set out how
every file is sent over the network.
[SOURCE: USAToday (3D), AUTHOR: USAToday Staff]
(http://www.usatoday.com/usatonline/20000620/2379044s.htm)

LETTER FROM SYRIA (The world's commotion arrives on the Internet)
Issue: International
Like the rest of the world, Syria has begun to welcome the Internet. The
World Wide Web, however, presents some difficult questions for this country
that has tightly controlled the flow of information from the outside.
Syrians can now read stories online that would not appear in the officially
controlled local press. Efforts to censor the Internet are hampered by the
fact that individuals can simply use an out-of-country provider to escape
local barriers. But, for the time being, cost is a major obstacle to more
Syrians using the Net to gather information. The government may not be
worrying much about what is coming in over the Internet because computers
are beyond the economic reach of the average Syrian worker.
[SOURCE: Washington Post (A17), AUTHOR: Howard Schneider]
(http://washingtonpost.com/wp-dyn/articles/A24237-2000Jun19.html)

ECOMMERCE

ANOTHER INDUSTRY GROUP TACKLES ONLINE PRIVACY PROBLEM
Issue: Privacy
The Privacy Leadership Initiative, made up of the chief executives of such
giants as IBM, AT&T, Dell Computer and Ford, has vowed to work closely with
consumers to find online privacy solutions that really work. Many of the
companies and groups involved in the new group are already members of the
Online Privacy Alliance, a coalition that was formed two years ago to head
off new Internet privacy regulations. That group set basic guidelines
companies should follow in protecting consumer privacy, and it offered a
sample of the privacy policies that Web sites should post to let visitors
know how their personal information was being used. But the Federal Trade
Commission said in a recent report that such self-regulatory efforts were
not working fast or well enough, and that few Web sites were following
acceptable protection criteria.
"New industry organizations with 'privacy' in their titles are springing up
like new flavors of soft drinks," said Jason Catlett, president of
Junkbusters Corp., a company that works on consumer protection technologies.
"But it's all an attempt to make legislators and consumers think that the
problem isn't that companies are using personal information unfairly and
that consumers need legally guaranteed rights to stop that."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing (jeri( at )nytimes.com)]
(http://www.nytimes.com/library/tech/00/06/cyber/capital/20capital.html)

CONFLICTING NAPSTER PREDICTIONS EVOKE ERRORS IN FORETELLING IMPACT OF VCR
Issue: Ecommerce
While some people say that the technology threat to the record industry
might be real, it is too soon to tell what the Internet downloading services
like Napster or Gnutella will do to the recording industry. The
entertainment industry is struggling to predict what downloadable music
files will do to album sales. But if previous battles over VCRs and digital
audio tape have taught us anything, it's that technological prophecies don't
always turn out as predicted. Earlier predictions that TV would put
the movies out of business turned out to be not the case. When radio shows
began playing recorded music, musicians foresaw catastrophe for live
entertainment. It didn't happen. Thomas Parke Hughes, a visiting professor
at Massachusetts Institute of Technology, says a superior technology doesn't
eliminate the old technology completely; instead, the older way of doing
things is relegated to a niche, where it can remain for a long time.
Nevertheless, Technically adventurous PC owners are connecting their
computers to their living-room stereos. And just around the corner are
digital hi-fi products designed for the living room. New wireless Internet
transmission systems are being developed with the potential to bring digital
audio to cars. And Sony is selling an MP3 player called the "Music Clip"
that's the size of a ballpoint pen. It downloads MP3s from a PC and is used
with earphones, like a Walkman.
[SOURCE: Wall Street Journal (B1), AUTHOR: Lee Gomes]
(http://interactive.wsj.com/articles/SB961460865172897147.htm)
See Also:
DESPITE ITS POPULARITY, NAPSTER ISN'T READY FOR PRIME TIME YET
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Tom Weber]
(http://interactive.wsj.com/articles/SB96146221824027457.htm)

MUSIC COMPANIES ARE HOPING DOWNLOADS FOR FEES CAN PROVE AS POPULAR AS FREE
Issue: Ecommerce
To combat the erosion of both online and offline music sales, the recording
industry is striking back at Napster and Napster-like technologies. Instead
of paying $15.99 for a CD, Napster and like services allow users to download
music for free and then play the MP3 music on their PC, take it with them on
a portable device or "burn" it into their own CD collections. "At the end of
the day, the music industry as we now know it is over," declares Avram
Miller, a former Intel Corp. vice president with close ties to the
entertainment industry. The industry believes, however, that it can
appropriate the Napster format for their benefit. The five major labels --
Universal, Sony, BMG, Warner and EMI -- are preparing to sell their own
authorized downloadable recordings and will use both carrots (new hardware
with better sound quality, give-aways, and incentives) and sticks to move
their authorized recordings. One "carrot" concept is to make each PC a
vending machine -- and every computer user a sales rep for the industry. BMG
is working on efforts to build a system through which fans could distribute
downloaded albums by e-mail or put their encrypted downloads into
Napster-style file-sharing directories. People who start a chain of sales
could receive rewards, such as early access to new music or
commissions/credits on future music purchases. In case the incentives don't
achieve the desired effects, the industry still has an arsenal that includes
both intellectual property suits and new music file formats that only play
when a label's "digital watermark" is present.
[SOURCE: Wall Street Journal (B1) AUTHOR: Don Clark and Martin Peers]
(http://interactive.wsj.com/articles/SB961458021337970244.htm)

INFOTECH

TECHNOLOGICAL ADVISORY COUNCIL
Issue: InfoTech
The Technological Advisory Council ("Council"), will hold its fifth meeting
on Wednesday, June 28, at 10:00 a.m. at the Federal Communications
Commission, 445 12th St. S.W., Room TW-C305, Washington, D.C. 20554. The
Council was established by the Federal Communications Commission to enable a
wide array of distinguished technologists from industry, academia,
government, and the public to provide recommendations to the FCC concerning
technological developments in the communications industry.
The subjects that will be considered include: (1) software defined radios
and similar devices, and ways that the availability of such technologies
might affect the FCC's traditional approaches to spectrum management in
light of electromagnetic noise levels, including the possibility of creating
a "bill of rights" governing the behavior of intelligent communications
devices; (2) current technological trends in telecommunications services,
including changes that might decrease, rather than increase, the
accessibility of telecommunications services by persons with disabilities,
and ways by which the FCC might best communicate to designers of emerging
telecommunications network architectures, the requirements for
accessibility; (3) telecommunications common carrier network interconnection
issues and how the Council should address these; (4) additional issues that
the Council may choose to address in the future.
For further information, contact Kent Nilsson at 202-418-0845 or TTY
202-418-2989.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Engineering_Technology/Public_Notices/2000/da001
140.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 Program (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) and Rachel Anderson (rachel( 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.

Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Debate America (www.debateamerica.org)
Oneworld US (www.oneworldus.org)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)

Communications-related Headlines for 6/19/2000

MERGERS
FCC Attaches Conditions to Approval Of Merger Between GTE, Bell
Atlantic (WSJ)
EU Expands Inquiry Of AOL-Time Warner (WSJ)

INTERNET
Internet Surfers Listening Worldwide (USA)
One Aspect of Messages on the Internet to Be Delayed (NYT)
The Web Sets The News Agenda - Even In China (SJM)

TELEVISION
AOLTV Rolls Out Awaited Interactive Service (USA)

MERGERS

FCC Attaches Conditions to Approval of Merger between GTE, Bell Atlantic
Issue: Merger
The Federal Communications Commission approval of the merger between Bell
Atlantic and GTE comes with strings attached. FCC gave the green light for
the companies to blend into the new Verizon Communications, as long as GTE
divests most of its Internet backbone network, known as Genuity. GTE could
buy back Genuity within five years, if Bell Atlantic is able to persuade
regulators in all 13 states in which it provides local phone service to let
it offer long-distance service. If the two companies meet their obligations
as required by the FCC, the merger will create the nation's largest local
phone company and wireless-communications provider. "There will be those
that will claim this merger brings us closer to a re-emergence of Ma Bell,"
said FCC Chairman William Kennard, adding, but "the end result should
produce more competition, not less." Chairman Kennard justified the approval
of the merger by saying that the merger would accelerate deployment of
broadband, or high-speed, services, increase competition in local phone
markets and spark more investment in new markets.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB961367538221675696.htm)

EU Expands Inquiry of AOL-Time Warner
Issue: Merger
The mega-merger between America Online and Time Warner Inc. has hit another
hitch, and is headed for another four months of antitrust scrutiny. This
time, it is the Europeans who foresee potential anticompetitive impact on
the distribution of digital media if the merger is allowed to sail through.
The European Commission decision to scrutinize the merger was made last week
after it became clear that competitors customers remained concerned about
the prospect that the merged Internet and entertainment company could become
a gatekeeper with the ability to block services sold by third parties.
According to a person familiar with the situation, issues including vertical
integration had prompted the in-depth inquiry. But the two companies appear
unshaken by the vigorous scrutiny that has arisen since the announcement of
the merger. Time Warner Chairman Gerald Levin told a company-sponsored forum
in Paris last week that he remained confident the transaction would be
completed by this autumn. "AOL-Time Warner is a grand idea," he said,
adding, "There is no overlap" between the two businesses.
[SOURCE: Wall Street Journal (A25), AUTHOR: Mitchener And Philip Shishkin]
(http://interactive.wsj.com/articles/SB961358241167428024.htm)

INTERNET

INTERNET SURFERS LISTENING WORLDWIDE
Issue: Internet/Radio
More and more traditional radio broadcasters are beginning to send out their
signals online. According to George Bundy, CEO of BSR Media, a consultant
firm that advises stations on how to go online, around 3,500 stations are
already "streaming" their signals on the Internet. Bundy says the number is
growing by 100 to 120 stations a month. Some stations have almost doubled
their listener base by expanding on to the Web. According to market trackers
at Forrester Research, 16 million people listen to radio on the Internet, a
number analyst Jeremy Schwartz predicts will grow to 26 million in 2002.
Experts say that Internet radio is still a relatively small piece of the
pie. Sean Ross, editor of Billboard's Airplay Monitor magazine says "the
levels of listening are still very low. Nobody knows what the eventual
magnitude will be."
[SOURCE: USAToday (3D), AUTHOR: Jefferson Graham]
(http://www.usatoday.com/usatonline/20000619/2375692s.htm)

NEW ASPECT OF MESSAGES ON THE INTERNET TO BE DELAYED
Issue: Internet
In spite of instant messaging's popularity - a service which permits users
to send messages over the Internet that quickly pop up on a recipient's
screen - the fate of this service remains mired in technical and political
snags. It may now be more than a year before users from different services
will be able to communicate with one another. Last Thursday was the deadline
for proposals to an Internet Engineering Task Force, which has been charged
with creating standards to permit instant messages to be sent among users of
the dozen or so competing programs. Participation in the group is voluntary
and findings are nonbonding. AOL's competitors have asked the federal
government to look into AOL's dominant position in instant messaging as part
of its review of the merger with Time Warner. Some industry observers say
that the current situation, in which there is no interoperability, could be
compared to a telephone system in which different services, like Sprint and
AT&T, were unable to place telephone calls to one another. But AOL's
proposal won the day over all the others. V. J.Saraswat, co-chairman of the
instant messaging committee, said AOL's 18-page submission is a "document of
value" that requires serious analysis. For any solution that will let the
Instant messenger users to communicate, AOL says it wants to safeguard
security for its users by ensuring ways they can block messages from senders
they deem undesirable. Instant messaging has between 100 million and 120
million users. Forrester Research, a market research group in Cambridge,
Mass., reports that 36 percent of Fortune 1000 companies use instant
messaging, known in the industry as "IM," and project the number will grow
to 46 percent by the end of 2001.
[SOURCE: New York Times (C1), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/00/06/biztech/articles/19onli.html)

THE WEB SETS THE NEWS AGENDA - EVEN IN CHINA
Issue: Internet
The Internet is becoming an increasing important vehicle for political
discourse in China. On the Web, people can find information and discussion
that would never make its way onto the pages of newspapers tightly
controlled by government information officials. While not all of the news
online has been found to be accurate, the Internet is giving many ordinary
Chinese a public place to speak out for the first time. From accounts of
gruesome crimes and official corruption to bouts of Japan-bashing, the
Internet is starting to set the news agenda. And the government is
scrambling to react to the new medium. So far, officials have depended on
individual Web sites to hire censors, "Big Mamas," to weed out potential
controversy. But earlier this month police arrested a man on suspicion of
subversion after he posted information on his Web site about the Tiananmen
Square events of 1989.
[SOURCE: San Jose Mercury News, AUTHOR: Matt Pottinger (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/108967l.htm
)

TELEVISION

AOLTV ROLLS OUT AWAITED INTERACTIVE SERVICE
Issue: Interactive TV
America Online will announce the launch of its long-awaited interactive TV
service today. AOLTV will let subscribers send email, chat online and surf
the Web on the TV screen while watching a show. Some analysts predict that
AOLTV's potent brand and large subscribership base will jump start the
interactive TV market. Others, however, say the $249 set-top box is more
than most viewers will be willing to spend. As part of its antitrust review
of AOL's pending merger with Time Warner, the Federal Trade Commission is
concerned that AOLTV's interactive features could favor Time Warner
channels, such as CNN, and shut out rivals, such as ABC News. While AOL
executives claim that they will open the service to any broadcaster,
consumer advocate Gene Kimmelman challenges AOL to put that in writing.
[SOURCE: USAToday (8B), AUTHOR: Paul Davidson]
(http://www.usatoday.com/usatonline/20000619/2375628s.htm)
See Also:
AOL TO LAUNCH SET-TOP BOXES THAT LET USERS CHAT ONLINE WHILE WATCHING TV
[SOURCE: Wall Street Journal (B13), AUTHOR: Julia Angwin]
(http://interactive.wsj.com/articles/SB961362519698697717.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 Program (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), 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.

Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Debate America (www.debateamerica.org)
Oneworld US (www.oneworldus.org)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)