July 2000

Communications-related Headlines for 7/31/2000

JOBS
Phone Workers Fight for Place In Wireless Era (NYT)
E-Commerce Report: Dot-Com Employees Grow More Selective (NYT)

INTELLECTUAL PROPERTY
Napster Wins Reprieve From Court-Ordered Shutdown (WP)
Free Speech Rights For Computer Code? (NYT)

POLITICAL DISCOURSE
The Net's Impact on Politics Remains More Promise Than
Promise Fulfilled (WSJ)

MERGERS/ALLIANCES
Time Warner Signs Web Access Deal (WP)
New Economy: AOL's Rivals Want to See Open
Instant Messaging (NYT)
AOL, NTT DoCoMo Agree to Develop Wireless Internet
Services for Japan (WSJ)
Ford, Qualcomm Form Wireless Services Company (WP)

PRIVACY
U.S. Postal Service to Offer Free E-Mail Service (WSJ)
British Cyber-Snooping Law Enacted (USAToday)
EPIC, Junkbusters Release Report on Online
Profiling Principles (EPIC)

PUBLISHING
Random House To Establish Exclusively Digital Unit (NYT)

RADIO
Low Power FM Applications (FCC)

JOBS

PHONE WORKERS FIGHT FOR PLACE IN WIRELESS ERA
Issue: Jobs
Members of the Communications Workers of America and the International
Brotherhood of Electrical Workers may strike against Verizon next week over
the newly-formed companies widespread use of lower paid, nonunion workers in
its fastest growing businesses, most notably wireless phones. "Right now the
chances of a strike are better than 50-50," said Morton Bahr, president of
the communications workers' union, which represents 72,500 of the workers
who might walk out. Eighty percent of Veizon's local line division (120,000
workers) are unionized, but only 46 the 32,000 workers in the wireless
division are. The challenge for the two unions is daunting because they are
finding it tough to keep pace with a fast-changing company in a
fast-changing industry. Indeed, the unions are struggling to adapt to many
developments common throughout the New Economy: new job categories, new
types of compensation like profit sharing, and the increased use of
contingent workers like temporary hires and independent contractors.
[SOURCE: New York Times (A1), AUTHOR: Steven Grenhouse]
(http://www.nytimes.com/library/financial/073100wireless-union.html)

E-COMMERCE REPORT: DOT-COM EMPLOYEES GROW MORE SELECTIVE
Issue: Jobs
E-commerce companies are still having problems finding employees this summer
even though there are more employees available. Words like "stock options"
and "revolutionize" don't attract potential employees anymore. Recruiters
and employers are finding that people want a good salary and good prospects
for corporate longevity. Some are turning to the online efforts of
established, brick and mortar outfits like KMart's BlueLight.com.
[SOURCE: New York Times (C10), AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/00/07/cyber/commerce/31ecommerce.html)

INTELLECTUAL PROPERTY

NAPSTER WINS REPRIEVE FROM COURT-ORDERED SHUTDOWN
Issue: Intellectual Property
A federal appeals court granted Napster a temporary reprieve Saturday,
allowing the company to continue operating until mid-September. The
emergency stay granted by the 9th U.S. Court of Appeals gives Napster's
lawyers time to appeal a court injunction issued Wednesday. On Wednesday,
District Judge Marilyn Hall Patel ordered Napster to halt its operations,
saying she found "overwhelming" evidence that the Napster site was created
to allow music lovers to duplicate copyrighted works. The appeals judges
said "substantial questions" had been raised about the "merits and form of
the injunction." "We are grateful that the Court of Appeals is going to
review the court's injunction and the issues that we've raised and that, as
it goes about that work, permit Napster users to continue using the Napster
service," said Jonathan Schiller, an attorney for the company.
[SOURCE: Washington Post, AUTHOR: Christopher Stern & David Segal]
(http://washingtonpost.com/wp-dyn/articles/A62981-2000Jul28.html)
See also
NAPSTER APPEAL IS ON LEGAL FAST TRACK AFTER A STAY THAT DELAYED CLOSING SITE
[SOURCE: Wall Street Journal (B11), AUTHOR: Lee Gomes]
(http://interactive.wsj.com/articles/SB964996300116319611.htm)

FREE SPEECH RIGHTS FOR COMPUTER CODE?
Issue: Intellectual Property
While Napster is gaining much media attention and coverage, a Manhattan case
involving the copying of DVD movie disks, may have more far-reaching effects
on electronic copyright. This case boils down to whether computer code is
deemed to be speech deserving of First Amendment protection. A witness for
the defense told the judge that if he saw fit to ban any one depiction of
the DVD-unscrambling software he would have ultimately have to ban them all,
because they all communicate the same thing - 1s and 0s. "I see this as
having a chilling effect on my ability as a computer scientist to express
myself," Professor Touretzky said. "If the court upholds this injunction,
what would happen is that certain uses of computer language -- my preferred
means of expression -- would be illegal." Until that moment, the author
writes, United States District Judge Lewis A. Kaplan had appeared to have
little doubt about the copyright law's constitutionality. When ordering the
injunction, Kaplan had noted that the First Amendment does not shield
copyright infringement, and that computer code was essentially "no more
expressive than an automobile ignition key." But in light of Touretzky's
testimony Judge Kaplan saw that it would be hard to argue that computer code
"has no expressive content," so said that he would have to reconsider the
constitutionality question. Neither side is willing to predict how the judge
may now rule, which he has indicated he planned to do shortly after lawyers
submit
closing briefs on Aug. 8.
[SOURCE: New York Times (C1), AUTHOR: Amy Harmon]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/31rite.html)

POLITICAL DISCOURSE

THE NET'S IMPACT ON POLITICS REMAINS MORE PROMISE THAN PROMISE FULFILLED
Issue: Political Discourse
Fifteen Internet publications have applied for credentials to cover the
Republican convention in Philadelphia this year compared to none four
years ago. But the Internet's impact on politics is still about the future --
not the present. Sen. John McCain (R-AZ) used the Web heavily during his
failed effort to win the party's presidential nomination -- proving the Net
to be a powerful tool for raising money and organizing voters. Despite his
and others'
success in using the Internet to target voters, both parties have
been slow to embrace the Web on a large scale. The official convention
schedule is dominated with traditional fare, like taxes and social security,
with technology issues barely touched on during weekend meetings on the
Republican party platform. But changes are underway. This year, California
began requiring political candidates to file financial disclosure forms
electronically so that voters and news organizations can have easier access
to them. The state is experimenting with a number of other projects that
hopes to bring constituents closer to their government. Online voting is
still in the embryonic stage, but shows promise. According to analysts, the
Web's most visible short-term impact on the election process will be a
dramatic increase in online media coverage of the conventions. "Has the
Internet transformed politics? No. Will it? Absolutely," Haley Barbour,
former chairman of the Republican National Committee, said at a
preconvention forum Sunday. "We definitely aren't there yet."
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Jason Anders]
(http://interactive.wsj.com/articles/SB965009047774339354.htm)

MERGERS/ALLIANCES

TIME WARNER SIGNS WEB ACCESS DEAL
Issue: Mergers
Just days after facing regulatory scrutiny on its planned merger with AOL,
Time Warner announces that it has made a deal to allow an independent ISP
access to its cable system. Time and Juno Online Services are to announce
the preliminary agreement today. The arrangement would offer
high-speed Internet service to cable customers. Time Warner's promise to
open its cable system to competing Internet service providers is being
carefully monitored by regulators. "This groundbreaking agreement
underscores Time Warner Cable's commitment to offer its cable customers a
choice of Internet service providers," said Glenn Britt, president of Time
Warner Cable. He said the company would try to sign agreements with other
Internet service providers. At Thursday's regulatory hearings, FCC
Chairman William Kennard challenged AOL Chairman Steve Case and Time Warner
chief Gerald Levin to offer details about when the cable systems would begin
carrying other Internet providers. Levin answered that the company was
restructuring the joint Road Runner LLC service and was in the process of
conducting trials.
[SOURCE: Washington Post, AUTHOR: Peter Svensson]
(http://washingtonpost.com/wp-dyn/articles/A7833-2000Jul31.html)
See Also
TIME WARNER AGREES TO LET JUNO USE NETWORK FOR INTERNET SERVICE
[SOURCE: Wall Street Journal (B8), AUTHOR: NICK WINGFIELD]
(http://interactive.wsj.com/articles/SB964990638179936103.htm)

NEW ECONOMY: AOL'S RIVALS WANT TO SEE OPEN INSTANT MESSAGING
Issue: Internet
"Mr. Case, on behalf of the I.M. industry and users everywhere, tear down
this wall!" Ross Bagully, chief executive of an America Online rival, Tribal
Voice, said in testimony before the Federal Communications Commission last
Thursday, after a speech by AOL's chairman, Steve Case. "Users of I.M., like
users of e-mail and the telephone," Mr. Bagully said, "deserve the right to
free and open communication." Outside the FCC building a handful of
protesters marched with signs that read, "Free I.M.!" Instant Messaging is
most popular with teenagers and families now, but analysts believe that
within a few years, business users will make up half of the total users. AOL
dominates 90% of the IM market now and other players -- microsoft, Yahoo,
Odigo, iCast and Tribal Voice -- want AOL to open its IM system so that
users of these other systems can chat with AOL users. No one doubts that the
industry is moving to interoperability, the question is how long it will
take. As the market leader, AOL wants to control whatever the standard turns
out to be. It says it will take a year to reach a new standard --
competitors disagree. "We know from history," Mr. Bagully said, "that those
who unfairly exploit a market dominance don't get nicer as they get bigger."
[SOURCE: New York Times (C5), AUTHOR: Laurie Flynn]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/31neco.html)

AOL, NTT DOCOMO AGREE TO DEVELOP WIRELESS INTERNET SERVICES FOR JAPAN
Issue:Internet
America Online and Japanese mobile-phone company NTT DoCoMo Inc. have
reached an agreement to jointly develop wireless Internet services in Japan,
including an investment by DoCoMo in AOL's Japan unit, according to a person
familiar with the agreement. Under the agreement, DoCoMo
and AOL will initially each invest $100 million into AOL Japan, currently a
joint venture between AOL, trading company Mitsui & Co. and publisher Nihon
Keizai Shimbun. The agreement is significant because it ties the world's
largest fixed-line Internet company with the world's largest provider of
wireless Internet services. The agreement calls for the two companies to
integrate their services in Japan so that, for example, users of DoCoMo's
i-mode mobile Internet service will be able to access
their AOL accounts through their cell phones. Under the deal, AOL Japan will
become DoCoMo's exclusive fixed-line Internet-service provider and receive
preferential treatment on the i-mode service, which enables subscribers to
send and receive e-mail and access modified Web sites via cellular handsets.
[SOURCE: Wall Street Journal, AUTHOR: Robert Guth]
(http://interactive.wsj.com/articles/SB965012909785293006.htm)

FORD, QUALCOMM FORM WIRELESS SERVICES COMPANY
Issue: Wireless
Ford and Qualcomm, a provider of wireless phone technology, Monday announced
the creation of Wingcast, a new San Diego-based company. Wingcast will
develop and deliver wireless information services into cars and trucks. Its
services will include voice, entertainment, Internet access and safety
services to drivers of Ford vehicles. The first services will be available
in late 2001. While details were not revealed, Qualcomm and Ford will each
own equity in the company. Ford projects more than a million of its new cars
and trucks to be equipped for mobile communications by the end of 2002,
three million by 2003 and nearly all of its cars and trucks by the end of 2004.
[SOURCE: Washington Post, AUTHOR: Reuters]
(http://washingtonpost.com/wp-dyn/articles/A9135-2000Jul31.html)
See Also
QUALCOMM, FORD PLAN TO START JOINT VENTURE WITH TELEMATIC UNIT
[SOURCE: Wall Street Journal (A3), AUTHOR: Rebecca Buckman, Pui-Wing Tam And
Karen Lundegaard]
(http://interactive.wsj.com/articles/SB96499439358279008.htm)

PRIVACY

U.S. POSTAL SERVICE TO OFFER FREE E-MAIL SERVICE
Issue: Internet
Postal officials are planning to offer people living at all 120 million of
the nation's residential street addresses free e-mail addresses. It would
link the e-mail and real-world addresses in a Postal Service database in
Memphis, Tennessee. Local post offices will make paper printouts of e-mail
messages and deliver them with the mail, charging the sender about 41 cents
for a two-page document via first class mail. This project is raising
serious marketing implications by linking real-world and online identities.
The Postal Service sees the project mainly as an e-mail forwarding service.
Signing up would be strictly voluntary, and consumers would have to supply
their own Web access. For an extra fee, customers could maintain an account
at the Postal Service where messages could be retrieved. Not everyone is
embracing the Postal Service's latest attempt to enter cyberspace. "We
believe they are developing the largest spam database in the history of the
Internet," says Dave McClure, executive director of the U.S. Internet
Industry Association, which represents some 300 high-tech firms doing
business on the Internet. Postal officials insist every byte of information
will be secure. Federal law prohibits the Postal Service from selling any of
its consumer information, and it says it won't share any of the data with a
third party unless it receives a federal warrant. Rep. John McHugh (R-NY),
chairman of the House Postal Service Subcommittee, has proposed a bill that
would require the agency to spin off its Internet businesses into separate
companies. The subcommittee approved it last year.
[SOURCE: Wall Street Journal, AUTHOR: Julia Angwin]
(http://interactive.wsj.com/articles/SB964992560575163504.htm)

BRITISH CYBER-SNOOPING LAW ENACTED
Issue: Privacy
Legislation allowing the British government to track e-mails and seize
encrypted Internet communications will become law on Friday after a royal
signature. The law, hailed by the government as a bulwark against organized
crime but condemned by civil libertarians as the harbinger of an Orwellian
state, was approved by the House of Commons on Wednesday. The law enables
law-enforcement authorities to demand records of Internet traffic and view
the content of encrypted messages. Once the law takes effect in October, the
snooping will be overseen from a multimillion-dollar spy center reported to
be located within the headquarters of MI5, Britain's domestic espionage
agency. Internet service providers will be required to set up secure
channels to the government center so they can transmit information about
Internet traffic there. Critics are worried that information obtained by one
agency could be passed on to others, and says the system was open to abuse.
"I think that the provisions dealing with communications data are born of
complacency, are unsatisfactory, and have little regard for the protection
of privacy and commercial confidences," said Labor Party lawmaker Harry
Cohen.
[SOURCE: USA Today (online), AUTHOR: Associated press]
(http://www.usatoday.com/life/cyber/tech/cti296.htm)

EPIC, JUNKBUSTERS RELEASE REPORT ON ONLINE PROFILING PRINCIPLES
Issue: Privacy
On July 28, EPIC and Junkbusters released "Network Advertising Initiative:
Principles not Privacy", a report that assesses past events surrounding
Internet advertisers, analyzes the recent self-regulatory guidelines
approved by the Federal Trade Commission (FTC), and proposes solutions that
will provide for the adequate protection of online privacy. Privacy
advocates sent a letter to the Senate Commerce Committee urging them to
examine the proposal. For background, also see the June 21 letter from
several Senators on the Commerce Committee to the FTC, urging the inclusion
of consumers and privacy groups in the negotiations.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/privacy/internet/NAI_analysis.html)

PUBLISHING

RANDOM HOUSE TO ESTABLISH EXCLUSIVELY DIGITAL UNIT
Issue: Online Publishing
Random House, the largest United States trade publisher, plans today to
announce the creation of a new, purely digital imprint. Beginning in January,
under the name AtRandom, the house will publish a list of 20 purely digital
books. All of the books will be sold either online or in single copies
printed on demand. None will be shipped to bookstores. The rush toward
e-publishing is creating quiet negotiations by
editors courting agents and authors for the digital rights to their new and
previously published books. Random House will sell its digital books through
online booksellers and other organizations' Web sites. The house plans to
sell the books for about the price of a typical trade paperback, for a
little less in electronic form and a little more in print-on-demand. Authors
will be paid royalties on electronic books of about 15 percent of the price.
For print-on-demand titles, authors will receive 7.5 percent of the price.
[SOURCE: New York Times (C1), AUTHOR: David Kirkpatrick]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/31book.html)

RADIO

LOW POWER FM APPLICATIONS
Issue: Radio
FCC to Accept Low Power FM Applications August 28 through September 1, 2000
for Connecticut, Illinois, Kansas, Michigan, Minnesota, Mississippi, Nevada,
New Hampshire, Puerto Rico, Virginia, and Wyoming. [For more on LPFM, see
http://www.mediaaccess.org/programs/lpfm/index.html]
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/Public_Notices/FM_Windows/da001697...)

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The Benton Foundation's Communications Policy Program (CPP)
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of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
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Communications-related Headlines for 7/27/2000

DIGITAL DIVIDE
In China, Use of Web Spreading to Masses (WP)
Illiteracy Pulls Appalachia Back, And Efforts Grow to Overcome It
Grow (NYT)
Computer Science Not Drawing Women (NYT)
Speech: Rohde at NARUC (NTIA)

WORKFORCE
Information Technology Producing Ripple Effect (EPN)

INTELLECTUAL PROPERTY
Economic Scene: Internet Changes the Economics of Information
Industries (NYT)
Saving The Nation's Digital Legacy (NYT)

TELEVISION
AOL To Meld TV And Internet (WP)

INTERNET
New Study Says That The Internet Is Far Bigger Than Most People
Think (SJM)
Arts( at )Large: Pushing Hypertext in New Directions (CyberTimes)

PRIVACY
Wiretapping in Cyberspace (NYT)
Divided Data Can Elude the Censor (NYT)
Toysmart.com Withdraws List Of Customer Data From Auction (WSJ)

MEDIA AND SOCIETY
The Impact of Entertainment Violence on Children (FCC)

MERGERS
News Corp. Won't Fight AOL-Time Warner Deal (WSJ)
AOL Is in Talks With NTT DoCoMo To Form Mobile Web Service Deal
(WSJ)
FCC Reviews Largest Media Merger Ever, But Impact on the Internet
Looms Even Larger (CME)

ECOMMERCE
Tax Fairness for Internet Commerce (EPN)

DIGITAL DIVIDE

IN CHINA, USE OF WEB SPREADING TO MASSES
Issue: Digital Divide
A new study reports that Internet access in China is growing beyond the
confines of only wealthy and educated elites. While the average Internet
user in China still has an income of near twice that of a non-Internet user,
there are increasing numbers of people with lower income and education
levels among the 12.3 million Chinese on the Net. A June survey by Iamasia
found that 62 percent of China's Internet users are male, 63 percent are
between the ages of 15 and 29, and 56 percent began using the Internet in
the last 12 months. "As the Internet grows to become increasingly mainstream
in China, the demographics of the Internet user base will begin to more
closely mirror those of the general population," Iamasia chief executive
Kevin Tan said in a statement.
[SOURCE: Washington Post (E8), AUTHOR: Terence Chea]
(http://washingtonpost.com/wp-dyn/articles/A51963-2000Jul26.html)

ILLITERACY PULLS APPALACHIA BACK, AND EFFORTS GROW TO OVERCOME IT GROW
Issue: Digital Divide
Children in Kentucky's Appalachian hills are still dropping out of school at
high rates and finding themselves unequipped for any but the most menial
jobs. In his presidential campaign, Gov. George W. Bush of Texas has
declared illiteracy a "national emergency," as part of his presidential
campaign. Vice President Al Gore has said he shares that view. Under a
federal-state program called Even Start, Congress and the Clinton
administration have increased aid to state literacy projects by nearly 50
percent, to $150 million, in three years. Gov. Paul E. Patton of Kentucky, a
Democrat, who observes that his state has the nation's lowest percentage of
high school graduates, is doubling expenditures on literacy programs, like
Even Start, to $34 million over two years. Across Eastern Kentucky's rural,
time-worn cities and towns, government agencies, foundations and charities
have opened storefront learning centers to coax people to study for the
general education development test, the G.E.D, the equivalent of a high
school diploma. Kentucky is also tightening enforcement of the law requiring
students to stay in school until age 16 and supporting counseling to
discourage dropping out and discouraging social promotion.
[SOURCE: New York Times (A1), AUTHOR: Peter Kilborn]
(http://www.nytimes.com/library/national/072700south-literacy-edu.html)

COMPUTER SCIENCE NOT DRAWING WOMEN
Issue: Digital Divide
A new study predicts that the proportion of women in computer science
programs is likely to be stagnant while undergraduate enrollments in
computer science will increase rapidly. "Women are going to be left behind,"
said Dr. Tracy Camp, a professor at the Colorado School of Mines who is
co-chairwoman of the Association for Computing Machinery's Committee on
Women in Computing, which has done several studies analyzing the proportion
of women studying computer science. Dr. Camp is the lead author of the
study. The new research found that women account for about 17 percent of the
undergraduate computer science majors at United States universities that
offer Ph.D.'s in computer science. The study predicts a nominal increase in
this percentage, to about 17.5 percent for the 2000-2001 school year, but
then the proportion is expected to drop to between 16 and 16.5 percent.
"There are certainly more students than in the past," Dr. Camp said. "The
raw numbers are increasing. But the percentage of women is not." Between
1983 and 1996, the percentage of women earning bachelor's degrees at
universities and colleges in computer science dropped from a high of 37.1
percent to a low of 27.5 percent.
[SOURCE: New York Times (D10), AUTHOR: Anne Eisenberg]
(http://www.nytimes.com/)

SPEECH: ROHDE AT NARUC
Issue: Digital Divide
Gregory L. Rohde, Assistant Secretary of Commerce for Communications and
Information, addressed the National Association of Regulatory Utility
Commissioners Communications Committee in Los Angeles on July 26. He focused
his remarks on the development of competitive telecommunications markets and
closing the digital divide.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/speeches/2000/grnaruc72600.htm)

WORKFORCE

INFORMATION TECHNOLOGY PRODUCING RIPPLE EFFECT
Issue: Workforce
In a study for the U.S. Department of Labor, the Center for National Policy
examined the impact of rapid IT output and productivity growth on U.S.
employment, earnings and occupational structure between 1977 and 1995. The
overall conclusion was that IT's impact on the U.S. workforce was very
positive, particularly because of the ripple effect - the large and growing
number of indirect jobs supported by IT across all industries. Further
research performed by CNP suggests that the number of these indirect jobs
has probably increased dramatically in the years since 1995.
[SOURCE: Electronic Policy Network]
(http://www.epn.org/whatsnew/full_cite/206.html)

INTELLECTUAL PROPERTY

ECONOMIC SCENE: INTERNET CHANGES THE ECONOMICS OF INFORMATION INDUSTRIES
Issue: Intellectual Property
Napster and other services that provide Internet users with directories of
available online music are challenging the economy of the recording industry
(and, of course, being challenged by the industry in court). The turmoil is
the result of a technological revolution and the question should not be
whether the current business model for music distribution can survive, but
whether there is any business model that can support the creation and
dissemination of high-quality music over the Internet. The industry is
betting on the Secure Music Digital Initiative, a copy protection standard.
But there are two problems: 1) there is no way to protect music once it has
been translated into audible sound and 2) given the choice between paying $2
for a copy-protected song by a well-known band and listening to some garage
band for free, many may opt for the latter. Varian concludes: From the
viewpoint of economic policy, the critical thing is to set up a legal
environment that provides sufficient incentives to the various parties to
create and distribute creative work. There is no requirement that the law
should try to preserve current ways of conducting business. Indeed, the
rewards should go to those companies, incumbents or entrepreneurs, that take
the risk of experimentation to find the models that fully realize the
potential of new technologies.
[SOURCE: New York Times (C2), AUTHOR: Hal Varian]
(http://www.nytimes.com/library/financial/columns/072700econ-scene.html)
See Also:
IN VICTORY FOR RECORD INDUSTRY, JUDGE BARS NAPSTER MUSIC SITE
[SOURCE: New York Times, AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/yr/mo/biztech/articles/27music.html)
THE SHOWS WERE LIVE AND ONLINE, BUT THEN THE MUSIC DIED
[SOURCE: New York Times (D9), AUTHOR: Alisha Berger]
(http://www.nytimes.com/library/tech/00/07/circuits/articles/27conc.html)
NAPSTER ORDERED TO SHUT DOWN
[SOURCE: Washington Post (A1), AUTHOR: James V. Grimaldi]
(http://washingtonpost.com/wp-dyn/articles/A50239-2000Jul26.html)
JUDGE ORDERS NAPSTER TO STOP DOWNLOADS OF COPYRIGHTED MUSIC
[SOURCE: Wall Street Journal (A3), AUTHOR: Lee Gomes]
(http://interactive.wsj.com/articles/SB964655783682278957.htm)

SAVING THE NATION'S DIGITAL LEGACY
Issue: Intellectual Property
The Library of Congress is charged with collecting the creative work of the
American people. But as that creativity extends to Websites, electronic
journals and CD-ROMs, the library is lagging in collecting and archiving
that digital material according to a report released by the National Academy
of Sciences. "The nation's creativity is at this point significantly
represented by what's happening electronically," said James O'Donnell, vice
provost of information systems and computing at the University of
Pennsylvania and chairman of the committee that produced the National
Academy's report. The committee included outside experts in digital
libraries, databases, computer networking and digital preservation. "If you
keep the mission of the library what it has been, the change in the
landscape brought about by networked information is dramatic and brings
about unavoidable challenges for the library," Professor O'Donnell said. In
its report, the committee said it saw "signs that the library is already
losing the momentum and purchase required to make the next steep ascent" to
respond to the new challenges "in a timely and effective way." [Much more at
the URL below]
[SOURCE: New York Times (D1), AUTHOR: Katie Hafner]
(http://www.nytimes.com/library/tech/00/07/circuits/articles/27libr.html)

TELEVISION

AOL TO MELD TV AND INTERNET
Issue: Television
Subscribers of a new AOLTV service will be able to use a wireless keyboard
to surf the World Wide Web, compose e-mail and send electronic instant
messages all on their TV screens. Interteractive TV is by no means a new
concept, but it has never really caught on in the past. Now, with the
pervasiveness of the Internet as well as AOL's ability to combine its
extraordinary customer reach--it has more than 40 percent of the online
access market--with Time Warner's vast media and cable assets, AOLTV has the
potential to make quite a splash. Analysts believe that by 2004, 29 percent
of U.S. households will have access to some interactive television services,
according to research firm Jupiter Communications Inc. Even though AOLTV has
yet to launch its services, many in the entertainment industry are concerned
by the idea that the next generation of television could be controlled by
new-economy giants such as AOL and Microsoft. Entertainment companies,
consumer groups and legislators worry that AOL Time Warner could use its
gatekeeper status to steer users to its own programming or could make it
slower or harder for users to get to the Web pages of its rivals. "The
question is, will those other voices outside of the walled garden controlled
by AOL be as visible? Will the access be of the
same quality?" said Jeff Chester of the Center for Media Education, a
consumer advocacy group.
[SOURCE: Washington Post (E1), AUTHOR: Ariana Eunjung Cha]
(http://washingtonpost.com/wp-dyn/articles/A50293-2000Jul26.html)

INTERNET

NEW STUDY SAYS THAT THE INTERNET IS FAR BIGGER THAN MOST PEOPLE THINK
Issue: Internet
World Wide Web is 500 times larger than the maps provided by popular search
engines like Yahoo!, AltaVista and Google.com, according to a 41-page
research paper, prepared by a South Dakota company that has developed new
Internet searching software. BrightPlanet estimates there are now about 550
billion documents stored on the Web, while Internet search engines combined
only index about 1 billion pages. BrightPlanet's software called "LexiBot,"
may be a solution for those who need to go beyond the information provided
by major search engines. With each search request, LexiBot not only searches
the pages indexed by traditional search engines, but also delves into the
databases on the Internet and fishes out the information contained in them.
The powerful search-ware isn't for everyone, BrightPlanet executives
concede. LexiBot costs $89.95 after a free 30-day trial and typical searches
will take 10 to 25 minutes to complete.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/029425.htm)

ARTS( at )LARGE: PUSHING HYPERTEXT IN NEW DIRECTIONS
Issue: Arts Online
After several years of intense activity, few new digital art works are
appearing. Are artists on a summer break? Are the waiting for the
commissioning spigot to start spewing dollars? Perhaps artists may be taking
time to ponder in which direction they should push the medium next. There
are two new works of note, however. "The Jew's Daughter," an online story by
Judd Morrissey, presents a startling alternative to conventional hypertext
fiction, in which a hyperlinked word or phrase sends a cursor-clicking
reader to another page, where another hyperlinked phrase awaits. Isabel
Chang, a New York artist, did not write the interactive story that appears
on her Web site, but her work is no less original. Her "aspergillum gently"
is a multimedia adaptation of "Pedro P

Communications-related Headlines for 7/26/2000

EDTECH
New Survey Lauds Midwestern States For Use of Technology
in Schools (CyberTimes)

LEGAL ISSUES
Public Citizen, ACLU File Briefs To Restrict Cybersmear Suits (WSJ)
Judge in DVD Case Asks for Briefs About Software Code, Free Speech (WSJ)

MERGERS
Deutsche Telekom's Sideshow (NYT)
GE's NBC Joins Effort Opposing AOL-Time Warner Merger Plan (WSJ)
AOL-Time Warner Merger (FCC)

MEDIA & SOCIETY
TV, Films Blamed For Child Violence (USA)
Internet Has Role In STDs Spread (USA)
Telephony Revives Rural Life in Iceland (WSJ)

PRIVACY
High-Tech Sleuth Joins Center Looking at New Privacy Issues (NYT)

BROADBAND HEARINGS
Internet Freedom and Broadband Deployment Act (House)
Broadband Internet Relief (Senate)

FCC
What We're All About (FCC)

EDTECH

NEW SURVEY LAUDS MIDWESTERN STATES FOR USE OF TECHNOLOGY IN SCHOOLS
Issue: EdTech
Market Data Retrieval, an educational research company, surveyed 30,000
public and private schools to create the "Technology Sophistication Index."
The index gauges a school's "technology sophistication" on several factors
that included its type of computer networking, its Internet connection
speed, how many high-end and multimedia computers a school had, the location
of the computers and the number of computers per student. Nebraska, South
Dakota, North Dakota and several other largely rural Midwestern states were
rated among the top 10 in the nation in terms of technology sophistication.
"Smaller communities aren't overwhelmed," said Wayne Fisher, Internet
program specialist for the Nebraska Department of Education's Education
Technology Center. "Many of our K-12 schools have less than 1,000 students
and many have less than 500. When you start about the task of connecting
everyone, you can do it in a bite-sized chunk." The other states ranked in
the top ten were Alaska, Wyoming, Delaware, Idaho, Montana, Kansas and Iowa.
School size contributed significantly to the states' successful efforts, but
so did coordinated technology planning by lawmakers and teachers.
[SOURCE: CyberTimes, AUTHOR: Rebecca Weiner (rweiner( at )nytimes.com)]
(http://www.nytimes.com/library/tech/00/07/cyber/education/26education.html)

LEGAL ISSUES

PUBLIC CITIZEN, ACLU FILE BRIEFS TO RESTRICT CYBERSMEAR SUITS
Issue: Free Speech
Public Citizen, a Washington consumer group founded by Ralph Nader, and the
American Civil Liberties Union are attempting to raise the bar for the
growing number of companies that file lawsuits against anonymous online
critics and try to unmask their identities. The two public-interest groups
say companies should be required to demonstrate economic harm from the
online postings before courts allow them to use legal measures to find out
the identities of their critics. At present, companies can easily
subpoena online message-boards for "cybersmear." Once a lawsuit is filed,
the message boards usually comply with court orders to turn over information
that identifies posters. "A company should not be able to deny members of
the public the right to speak anonymously simply by filing a complaint and
making vague allegations of wrongdoing," Public Citizen said in a
friend-of-the-court brief filed last week. For their part, lawyers who help
companies fend off online critics resent the involvement of Public Citizen
and the ACLU. "It certainly appears the free-speech zealots are getting more
involved," says Bruce Fischman, a Miami lawyer who has represented about a
dozen companies in cybersmear cases. "The Internet has become a milieu for
torching reputations of even the most respected companies," according to his
firm's Web site.
[SOURCE: Wall Street Journal (WSJ.COM), AUTHOR: Aaron Elstein]
(http://interactive.wsj.com/articles/SB964469643814135787.htm)

JUDGE IN DVD CASE ASKS FOR BRIEFS ABOUT SOFTWARE CODE, FREE SPEECH
Issue: Intellectual Property
On the last day of witness testimony, U.S. District Judge Lewis A. Kaplan
ordered attorneys representing eight major Hollywood studios and defendant
Eric Corley to submit briefs outlining whether software code can be
considered a legally protected form of speech. The studios argue that by
providing a free software program that unscrambles the coding on DVDs on his
Web site, Mr. Corley is providing bootleggers with the means to make free
copies of copyrighted movies. To date, the judge has sided with the movie
industry, issuing a preliminary injunction earlier this year barring Mr.
Corley form posting the code. But the comments made Tuesday indicated he
wanted to further analyze First Amendment issues related to the case.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Colleen Debaise (Dow
Jones) colleen.debase( at )dowjones.com]
(http://interactive.wsj.com/articles/SB964561572946534939.htm)

MERGERS

DEUTSCHE TELEKOM'S SIDESHOW
Issue: International/Competition
As Deutsche Telekom tries to make the big leap into the US market, it is
selling off portions of its cable properties in Germany. Callahan Associates
International is buying German cable properties, planning on upgrading the
systems to offer telephone service, high-speed access to the Internet and
interactive television. But DT, which has retained a 45% stake in each cable
system sold, may not let the cable systems compete with the larger phone
company. In fact, Callahan's bid was lower than that other potential buyers
and may have won by allowing DT to retain th most control.
[SOURCE: New York Times (C1), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/library/financial/072600deutsche-telekom.html)
See Also
EUROPE WARNS U.S. ON PHONE PROPOSAL
[SOURCE: New York Times (C3), Reuters]
(http://www.nytimes.com/library/financial/072600deutsche-warn.html)

GE'S NBC JOINS EFFORT OPPOSING AOL-TIME WARNER MERGER PLAN
Issue: Mergers
NBC has joined other big entertainment companies in the lobbying effort
against America Online Inc.'s proposed merger with Time Warner Inc. The
network, a subsidiary of General Electric, has filed comments with the
Federal Communications Commission, asking it to impose "clear safeguards"
on the deal to ensure the combined company doesn't discriminate against
rival content companies. NBC also expressed support for proposal from Walt
Disney Co. that Time Warner should be required to separate its cable systems
from its content business before it is allowed to proceed with the deal. In
addition to Disney and NBC's comments before the FCC, Seagram Co., owner of
Universal Studios, has also raised similar concerns about AOL-Time Warner
with European regulators. The FCC is expected hold a public hearing on the
AOL-Time Warner deal this week.
[SOURCE: Wall Street Journal, AUTHOR: Martin Peers]
(http://interactive.wsj.com/articles/SB964544161407318713.htm)

AOL-TIME WARNER MERGER
Issue: Mergers
The Federal Communications Commission announces the agenda and speakers who
will appear at the America Online Time Warner en banc hearing on July 27,
2000. The purpose of this hearing is to assist the Commission in its review
of the joint applications of America Online, Inc. (AOL) and Time Warner,
Inc. (Time Warner) for approval of the transfer of Commission licenses and
authorizations to a new entity, AOL Time Warner, in connection with the
merger of AOL and Time Warner.
The en banc will be held on July 27, 2000, from 1:00 p.m. to 5:00 p.m. at
the Federal Communications Commission in the Commission Meeting Room, 445
12th Street, S.W., Washington, D.C. 20554. The en banc will be open to the
public, and seating will be available on a first come, first served basis.
Cable Services Bureau Contact: Linda Senecal (202) 418-7044
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Cable/News_Releases/2000/nrcb0018.html)

MEDIA & SOCIETY

TV, FILMS BLAMED FOR CHILD VIOLENCE
Issue: Media and Society/ Health
Leaders of the public health community have concluded that viewing violent
entertainment can result in increased aggressive attitudes, values and
behavior, particularly in children. Their findings will be announced at a
public health summit today in Washington (DC) hosted by Sen. Sam Brownback
(R-KS). After review of more than 1,000 studies, a panel of experts
concluded that the evidence points "overwhelmingly to a causal connection
between media violence and aggressive behavior" in kids. Specifically, the
report suggests that viewing violent entertainment can have several negative
effects, including: making children more likely to see violence as an
effective way of settling conflicts; emotionally desensitizing children
toward violence in real life; and feeding a perception that the world is a
violent and mean place and increases the fear of becoming a victim of violence.
[SOURCE: USAToday (9D), AUTHOR: Ann Oldenburg]
(http://www.usatoday.com/usatonline/20000726/2489756s.htm)

INTERNET HAS ROLE IN STDS' SPREAD
Issue: Health/Internet
Public health experts have identified the Internet as both a new risk factor
for sexually transmitted diseases (STDs), and as a new weapon in the fight
against them. Two studies out today in the Journal of the American Medical
Association confirm what many already knew: Internet chat rooms are the
latest meeting place for people looking for sex partners. One of the studies
describes how the San Francisco Department of Public Health traced a
syphilis outbreak to an Internet chat room. In this case, the health
department was able to work with the site that hosted the chat room,
PlanetOut.com, in order to inform visitors of the cluster of syphilis cases
linked to the site and encourage anyone who met sex partners on it to seek
medical attention. So while the Internet could pose a bigger threat of STD
transmission than more conventional venues for meeting sex partners -
because it is easier to access and reaches a far wider audience - its very
reach is a reason to believe it can also be a promising public health tool.
[SOURCE: USAToday (7D), AUTHOR: Rita Rubin]
(http://www.usatoday.com/usatonline/20000726/2489770s.htm)

TELEPHONY REVIVES RURAL LIFE IN ICELAND
Issue: International
In Iceland's rural northern coast town of Hrisey, Gudmunder Gislason used to
pack frozen fish for a living. But with the help of Islensk Midlun, a small
telephone-marketing center in Reykjavik founded by Svavar Kristinsson and
his wife Karolina, Gudmunder Grislason now runs a calling center. In the
evening, six people there conduct opinion polls in Iceland for clients such
as PricewaterhouseCoopers using Internet-protocol technology from Cisco
Systems. Thanks to Internet telephony companies can now be vastly
decentralized. Workers can do business from their homes at the ends of the
earth but linked to a central server. The people they are calling will never
know the difference, but the companies with which they work could see phone
and real-estate expenses drop. The Hrisey calling center also appears to be
a free-market solution to governments' past social-engineering efforts.
Internet-protocol technology -- as well as other technologies, such as
high-speed Internet links -- may, by offering opportunities where people
live, brake the migration to urban areas brought on by industrialization.
"Now we have 120 or 130 employees in the villages. Since we began the
program, only two have left for Reykjavik and they went back to school, not
to a competitor. Our employee turnover is ever-lower and the knowledge among
the employees needed to sell our service is always higher and higher," says
Mr. Kristinsson.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour & Edward Harris]
(http://interactive.wsj.com/articles/SB964559353268141720.htm)

PRIVACY

HIGH-TECH SLEUTH JOINS CENTER LOOKING AT NEW PRIVACY ISSUES
Issue: Privacy
High-tech sleuth Richard Smith, the person who helped track the "Melissa"
and "I Love You" viruses, will join the Privacy Center today. The center
will investigate privacy concerns in the information age. Mr. Smith said the
center would focus initially on whether personal privacy was jeopardized by
the use of wireless phones with Web access, digital television set-top
boxes, software that can send user information back to its maker over the
Internet and other such new technologies. "We'll look at anything to do with
a computer, and stuff that is networked together," said Mr. Smith. The
effort is funded by Peter Barton, a Denver entrepreneur and former chief
executive of the Liberty Media Corporation.
[SOURCE: New York Times (C4), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/26cyber.html)

BROADBAND

INTERNET FREEDOM AND BROADBAND DEPLOYMENT ACT
Issue: Broadband
Thursday, July 27, 2000 11:00 a.m. in 2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a hearing focusing on H.R. 2420, the Internet Freedom and
Broadband Deployment Act of 1999. Witnesses will be by invitation only
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/)

BROADBAND INTERNET RELIEF
Issue: Broadband
Senator John McCain (R-AZ), Chairman of the Committee on Commerce, Science,
and Transportation, and Senator Sam Brownback (R-KS) announced the witness
list for the hearing on S. 2902, the Broadband Internet Regulatory Relief
Act of 2000. The Full Committee hearing is scheduled for Wednesday, July
26, at 9:30 a.m. in room 253 of the Russell Senate Office Building. Senator
Brownback will preside. Following is the tentative witness list (not
necessarily in order of appearance):
Panel I: Mr. John Shelby Bryan, Chairman and CEO, ICG Communications; Mr.
James D. Ellis, Senior Executive Vice President and General Counsel, SBC
Telecommunications, Inc.; Mr. Arne L. Haynes, President, The Rainer Group;
Mr. Robert Taylor, President and CEO, Focal Communications
Panel II: Ms. Sue Ashdown, Co-owner, Xmission; Mr. Tom Duesterberg,
President and Chief Executive Officer, Manufacturers Alliance; Mr. James K.
Glassman, Resident Fellow, American Enterprise Institute, and Host,
TechCentralStation.com; Mr. Peter Pitsch, Communications Policy Director,
For Information Technology Industry Council; Mr. Eric Strumingher, Managing
Director, Paine Webber
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-200.htm)

FCC

WHAT WE'RE ALL ABOUT
Issue: FCC
The Consumer's Guide to the Federal Communications Commission.
[SOURCE: FCC]
(http://www.fcc.gov/)

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

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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 7/25/2000

TELEPHONY
Confusion Over Phone Bills Spurs Action from
Regulators (SJM)
Deutsche Telekom Stands To Gain a U.S. Foothold (NYT)
EU Raises Concerns With U.S. Over Proposed Telecoms Law (WP)
France Telekom Buys 35% Stake In Poland's State Phone Company (WSJ)
'Best Practices' for Creating Open Markets (FCC)
Nationwide Implementation of Access to Telecommunications
Relay Services (FCC)
TELEVISION
Congress Set to Sort out Mixed Digital TV Signals (USA)
Bickering Delays Retail Debut of Set-top Cable Boxes (USA)

INTERNET
FBI Makes Case For Net Wiretaps (WP)
The Internet Can't Free China (NYT)
King E-Novel Short of Expected Demand (NYT)
Rivals Unite to Challenge AOL Chat System (WP)

TELEPHONY

CONFUSION OVER PHONE BILLS SPURS ACTION FROM REGULATORS
Issue: Telephony
As a result of increasing complaints about confusing phone bills and
unauthorized charges, federal and state regulators said Monday they are
developing tough new requirements for clear and accurate phone bills. "We
get many, many thousands of complaints every year from consumers who feel
that they are being taken advantage of in the (phone service) marketplace,"
said FCC Chairman William Kennard at a meeting of the National Association
of Regulatory Commissioners. A national group of state regulators has
drafted a series of more rigid rules that they expect many states to adopt
through their respective utilities commissions or state legislatures. The
proposed new rules would help phone customers by requiring phone companies
to send bills according to a certain minimum cycle (instead of sporadically,
as some companies do); provide rate-change information in a timely manner
and in clear language; give customers the ability to "block" added charges
on their phone bills; give customers a specified time frame to revoke the
purchases of certain services before the billing starts; and provide bills
that clearly show a customer's billing status and any inaccuracies.
[SOURCE: San Jose Mercury News/Los Angeles Times ]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/034262.htm)

DEUTSCHE TELEKOM STANDS TO GAIN A U.S. FOOTHOLD
Issue: Mergers
Although VoiceStream Wireless is only the 8th-largest wireless carrier in
the US, its value to Deutsche Telekom are the licenses it holds that could
potentially serve 70% of the US population (sorry CA and parts of the
Southeast). VoiceStream lost $203 million in the 1st quarter, but DT, the
2nd largest phone carrier in the world, will pay $50.7 billion for the
company's national reach. The deal will give DT the national footprint it
wants in the US and provide VoiceStream with the resources (read: cash) it
needs to complete its jigsaw puzzle network and prepare to offer the next
generation of wireless services.
[SOURCE: New York Times (C10), AUTHOR: Simon Romero]
(http://www.nytimes.com/library/financial/072500deutsche-telekom.html)
See Also:
DEUTSCHE TELEKOM FACES LAWMAKERS' OPPOSITION
[SOURCE: Wall Street Journal (A2), Author: Jill Carroll & Daniel Schwammenthal]
(http://interactive.wsj.com/articles/SB964482704616516503.htm)
BEHIND-THE-SCENES JOCKEYING INTENSIFIES IN DEUTSCHE TELEKOM DEAL
A look at the three prong attack needed to complete the deal: keep Congress
from acting to restrict foreign ownership, get the White House to approve
deal and get the FCC to OK the transfer of wireless licenses.
[SOURCE: New York Times (C1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/library/financial/072500deutsche-regulate.html)
WIRELESS GROWTH PUT PREMIUM ON VOICESTREAM PRICE
[SOURCE: Washington Post (E1), AUTHOR: Peter S.
Goodman]
(http://washingtonpost.com/wp-dyn/articles/A36129-2000Jul24.html)

EU RAISES CONCERNS WITH U.S. OVER PROPOSED TELECOMS LAW
Issue: International
European Union trade chief Pascal Lamy has written to U.S. Trade
Representative Charlene Barshefsky to express concern over a proposed U.S.
law that could effectively block Deutsche Telekom AG's takeover of U.S. firm
VoiceStream Wireless. "What we know of what is being put forward in Congress
goes against commitments the U.S. has taken in the WTO (World Trade
Organization) in the telecommunications agreement," said Lamy's spokesman
Anthony Gooch. The measure, proposed by U.S. Senator Ernest Hollings would
close a loophole permitting acquisitions of U.S. telecommunications firms by
foreign companies that are more than 25 percent state-owned. Willy Helin,
spokesman for the EU delegation in Washington, said on Sunday that the EU
could file a WTO complaint against Washington if Congress blocked majority
state-owned Deutsche Telekom's proposed $50.7 billion takeover of
VoiceStream.
[SOURCE: Washington Post, AUTHOR: Reuters]
(http://washingtonpost.com/wp-dyn/articles/A39530-2000Jul25.html)

FRANCE TELEKOM BUYS 35% STAKE IN POLAND'S STATE PHONE COMPANY
Issue: International
France Telecom SA and Polish conglomerate Kulczyk Holding SA are expected to
sign an agreement today to buy 35% of Poland's state telephone company,
Telekomunikacja Polska SA (TPSA), at a cost of 18.62 billion zlotys ($4.33
billion U.S). TPSA controls 95% of Polands's fixed-line phone market. The
French operation will buy 25% and Kulczyk will buy 10% of TPSA. The deal
must meet regulatory approval. The deal would allow the partners to gain
control of TPSA in 2001.
[SOURCE: Wall Street Journal (C14), Author: Elizabeth Williamson]
(http://interactive.wsj.com/articles/SB964475490117116887.htm)

'BEST PRACTICES' FOR CREATING OPEN MARKETS
Issue: Competition
In prepared remarks at the summer meeting of the National Association of
Regulatory Utility Commissioners (NARUC) in Los Angeles, California, FCC
Chairman Kennard hailed the federal-state partnership as a pro-competitive
tool for opening markets and increasing access for all Americans. He said,
"We have learned that when we link arms and give a voice to the voiceless,
we speak with a powerful voice indeed. We have learned that when we are
working in partnership, industry cannot exploit our differences. The hardest
fights are about the haves and the have nots, when we are the only voice for
the have nots. Regulators fight those battles alone, and they are the fights
we are winning." He detailed how the federal-state partnership has promoted
competition and access in the telecommunications industry: opening phone
monopolies, delegating powers, creating the E-rate, and protecting consumers
through enforcement.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/2000/stwek061.html)

NATIONWIDE IMPLEMENTATION OF ACCESS TO TELECOMMUNICATIONS RELAY SERVICES
Issue: Disabilities
The FCC required all telecommunications carriers nationwide to implement
three-digit, 711, dialing for access to all Telecommunications Relay
Services (TRS). This new dialing arrangement will supplement existing
systems in most states that require 7 or 10 digit numbers in order to
initiate relay calls. TRS facilitates telephone conversations between people
who do and those who do not have hearing or speech disabilities. The FCC
noted that its new rule will eliminate the difficulties that individuals
have with finding or remembering various relay numbers as they travel from
state to state. Bothvoice and TRSusers will be able to initiate a call from
any telephone, anywhere in the United States, without having to remember and
dial a 7 or 10-digit number.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2000/nrcc0038.html)
See Also:
CHAIRMAN KENNARD'S STATEMENT ON ANNIVERSARY OF ADA AND SUPPORTING
THREE DISABILITY COMMISSION ITEMS
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/2000/stwek059.html)

TELEVISION

CONGRESS SET TO SORT OUT MIXED DIGITAL TV SIGNALS
Issue: DTV
While more than 100 stations are already broadcasting DTV signals
nationwide, not many viewers have enjoyed the future of TV. In addition to
expensive digital receivers, homeowners also often need rooftop antennas for
adequate reception. A House Commerce subcommittee is holding a hearing today
to get an update on issues related to the transition. Sinclair Broadcasting,
which has 50 stations, is calling for improvements to the current
transmission standard, 8-VSB, because of reception problems. Recently, the
major networks told the Federal Communications Commission that they favor
more testing, including that of an alternative standard, supported by
Sinclair, called COFDM. A recent survey of 200 DTV owners found that 96% are
satisfied with picture quality, especially that of high-definition TV
(HDTV), according to the National Consumers League.
[SOURCE: USAToday (3D), AUTHOR: Mike Snider]
(http://www.usatoday.com/usatonline/20000725/2485431s.htm)
See Also:
HIGH DEFINITION TELEVISION
Live Webcast -- Tuesday, July 25, 2000 10:00 a.m. in 2123 Rayburn House
Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection
oversight hearing on High Definition Television (HDTV) and related matters.
Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/8860cda2d1c6e902852569260071eb9a?OpenDocument)

BICKERING DELAYS RETAIL OF SET-TOP BOXES
Issue: Cable/TV
In 1998, the Federal Communications Commission ruled that by July 1 of this
year, the cable industry must offer consumers a set-top box that would be
compatible with all different cable systems. This new breed of digital box
would come complete with features such as interactive games, Web surfing and
digital picture storage and would allow users to even bring it along when
they move. But no companies are making the new digital boxes and no
retailers are ordering them. And, citing high prices and squabbles over
revenue sharing and technology standards, they say retail sale is at least a
year away. "Customers are not knocking on the door saying we want these
boxes," says Rick Borinstein, senior vice president of Radio Shack [funny,
would you expect them to want something that does not exist yet?]. The main
problem is the economics of the set-top boxes, which could cost $300 to
$1,000 when they hit stores.
[SOURCE: USAToday (1B), AUTHOR: Edward Iwata]
(http://www.usatoday.com/usatonline/20000725/2485480s.htm)

INTERNET

FBI MAKES CASE FOR WIRETAPS
Issue: Privacy/Security
Federal law enforcement officials defended the FBI's controversial Internet
wiretap system, "Carnivore," in front of Congress yesterday. Civil liberties
groups and Internet service providers are concerned that in sniffing out
potential criminal conduct, the new system also could scan private
information about legal activities, taking in vast amounts of information
from innocent people as well as the suspect. FBI officials insisted that
Carnivore actually provides greater privacy than previous methods of
gathering electronic information because it can fine-tune what the machine
hands over to investigators. Barry Steinhardt, associate director of the
American Civil Liberties Union, said in his testimony: "Carnivore is roughly
equivalent to a wiretap capable of accessing the contents of the
conversations of all the phone company's customers, with the 'assurance'
that the FBI will record only conversations of the specified target." [See
more at www.epic.org]
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-dyn/articles/A38301-2000Jul24.html)

THE INTERNET CAN'T FREE CHINA
Issue: International
[Op-Ed] "When over 100 million people in China can get on the Net,"
President Clinton has argued, "it will be impossible to maintain a closed
political and economic society." But will it? Not when the government can
trace the addresses of users that are sending or receiving unapproved
information, not when filtering technology can be installed at the
facilities of Internet service providers, not when the majority of Chinese
may access the Net through mobile phones or set-top boxes. Luh concludes: As
Western companies work to protect copyrights and enhance the security of
information they collect, new techniques for control of Internet
communication are being developed every day. Even if American companies do
not sell their innovations to China directly, the Chinese will be able to
develop them on their own or buy them from other nations. The Internet won't
be free in China until other influences force the country to lift its most
insidious trade barrier: the ban on ideas that threaten Communist Party rule.
[SOURCE: New York Times (A29), AUTHOR: James Luh]
(http://www.nytimes.com/yr/mo/day/oped/25luh.html)

KING E-NOVEL SHORT OF EXPECTED DEMAND
Issue: Publishing
Just 41,000 Stephen King fans downloaded the first chapter of "The Plant"
from the author's Web site. [Just 41,000? We'll take it] Amazon.com is
handling payments for the electronic book and reported it had collected
25,000 in credit card payments -- another 7,000 customers agreed to send a
check or cash. Mr. King asked readers to pay him a dollar for each chapter
they downloaded, and warned that he would not post new installments unless
he received payments for at least 75 percent of the downloads. Jeff Bezos,
the chief executive of Amazon.com, said he hoped that the honor-system model
might inspire others to try distributing books like "shareware," software
circulated on the Internet with payment expected later. "If you can make it
easy for people, people are going to be willing to pay," he said. The
American Booksellers Association is disappointed Mr. King decided on Amazon
rather than the association's Booksense Web site.
[SOURCE: New York Times (C8), AUTHOR: David Kirkpatrick]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/25king.html)

RIVALS UNITE TO CHALLENGE AOL CHAT SYSTEM
Issue: Internet
Amid complaints that AOL's Instant Messaging (AIM) service is dominating the
Instant Messaging field, Microsoft's MSN network announced it has joined
with AT&T, ExciteAtHome and others to formally challenge AOL's
dominance of instant messaging software. The new coalition is hoping to
create a common open standard for instant messaging. To date, instant
messages have been confined to their own Internet provider's network -- a bit
like telephone users not being able to call friends signed up with other
operators. AOL's AIM messaging network dwarfs all competitors combined. AOL
has cited security and privacy concerns in declining links with outside
networks. "Internet users want to exchange instant messages with each other,
regardless of which service they use," Brian Park, a senior producer at
alliance member Yahoo! said in a statement issued in London. The alliance
will be called IMUnified and will set out common specifications by the end
of next month to allow their networks to be linked up.
[SOURCE: Washington Post, AUTHOR: Richard Meares]
(http://washingtonpost.com/wp-dyn/articles/A39561-2000Jul25.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 7/24/2000

WORKFORCE
Race Issues Shake Tech World (USA)
More Than Advertisers Are Feeling the Effects of the Actors' Strike
(NYT)

MERGERS
Deutsche Telekom Agrees to Acquire VoiceStream Wireless for
$50.5 Billion (WSJ)
Deutsche Telekom Deal: Did Barriers Fall in Europe,
Just to Rise in the U.S.? (NYT)

RADIO/TELEVISION
Radio Host Appeals to Listeners as Protest Led by Gay Groups Cuts
Into Advertising (NYT)
FCC Requires TV Broadcasters to Offer Video Description for Visually
Impaired (WSJ)
High Definition Television (House)

ARTS
Stephen King Sows Dread in Publishers With Latest E-Tale (NYT)
Art, Culture, and the National Agenda (EPN)

INTERNET
FBI Faces More Pressure to Disclose Code for E-Mail
Surveillance System (WSJ)
New Economy: Contradictions Abound in Public Concerns Over
Net Privacy (NYT)
In the Age of Napster, We Face Copyright Gap (WSJ)
Rivals Complain About AOL's Plan To Open Instant Messaging Service (WSJ)
Internet Freedom and Broadband Deployment Act (House)
Broadband Internet Regulatory Relief (Senate)

INTERNATIONAL
Telecom Giant Still Reigns in Japan (WP)
All the Iranian News, All the Time (NYT)

WORKFORCE

RACE ISSUES SHAKE TECH WORLD
Issue: Diversity/Workforce
A major study last year of 250 Silicon Valley firms employing 142,000
workers found that 4 percent were black and 8 percent were Hispanic, while
in the San Francisco Bay Area, blacks and Hispanics make up 8 and 14 percent
of the workforce. And in recent months, high-tech firms have been hit with
dozens of lawsuits and complaints alleging racial discrimination. "Silicon
Valley prides itself on being a unique meritocracy, but, of course, there's
discrimination there just as there is in every other industry," says Butch
Wing, a spokesman for the Rainbow/PUSH coalition. In the largest case, dozens
of current and former employees of Nextel Communications filed complaints
with the U.S. Equal Employment Opportunity Commission, charging racial and
sexual discrimination. The National Urban League and other black leaders are
fighting the government's plans to double to 200,000
the number of H-1B visas for high-tech foreign workers. They argue that
technology firms seeking to hire immigrants are ignoring well-qualified
blacks and Hispanics at home.
[SOURCE: USAToday (1B), AUTHOR: Edward Iwata]
(http://www.usatoday.com/usatonline/20000724/2482422s.htm)

MORE THAN ADVERTISERS ARE FEELING THE EFFECTS OF THE ACTORS' STRIKE
Issue: Jobs
The long and bitter dispute between striking actors and the advertising
industry is hurting the small businesses that play a role in the production
of commercials. The central issue in the strike is how to pay actors for
performing in commercials. Negotiators for the advertising industry say they
want to eliminate obsolete residual rules from the 1950's, when only a few
channels existed. No one can pinpoint just how much the strike has cost, but
the Entertainment Industry Development Corporation, a quasi-public
organization, estimates that Los Angeles County is losing about $1 million a
day. "This has been very painful for us," said the president of one
postproduction house, who has had to lay off 31 employees out of a staff of
220. He requested anonymity because he did not want to publicize his
business problems. Even those not directly associated with television are
being hurt: Bert Berdis & Company, a commercial production house in
Hollywood, has furloughed 5 of its 20 employees and imposed a 20 percent pay
cut on everyone else. "What's really frustrating is that this stuff has
nothing to do with radio," said Mr. Berdis, referring to the issues in the
strike, "and yet all of us are being dragged along into this thing. This
makes no sense to me." Both sides say they are holding firm because an
important principle is at stake - how to fairly update the daily pay methods
for an industry that has increasingly broader reach. Many actors accuse the
advertising industry of trying to shortchange them at a time when revenues
are at an all-time high.
[SOURCE: New York Times (C1), AUTHOR: Terry Pristin]
(http://www.nytimes.com/library/financial/072400sag-strike.html)

MERGERS

DEUTSCHE TELEKOM AGREES TO ACQUIRE VOICESTREAM WIRELESS FOR $50.5 BILLION
Issue:Merger
The proposed deal between Deutsche Telekom and VoiceStream, valued at $50.7
billion has been approved by the boards of the two companies, although the
agreement faces growing opposition in Washington. The proposed transaction
would bring the booming wireless industry a step closer to a seamless
world-wide network. The new company would have
licenses to operate wireless networks that stretch from Europe to the
hottest markets in U.S. The deal also forges the first wireless competitor
that operates in both Europe and North America using a common digital
standard called Global System for Mobile Communications -- paving the way
for cell-phone customers to more easily use one phone all over the world.
But the proposed deal faces growing opposition in Washington [see below].
Should the VoiceStream deal be completed, the German government's stake in
the company would be diluted to 42% from 58%, and Deutsche Telekom hopes
this will help allay concerns in Washington.
[Wall Street Journal (A3), AUTHOR: Nicole Harris, Nikhil Deogun And William
Boston]
(http://interactive.wsj.com/articles/SB964385673718690690.htm)
See Also:
DEUTSCHE TELEKOM TO PAY $50 BILLION FOR U.S. COMPANY
[SOURCE: New York Times (A1), AUTHOR: Sorkin & Romero]
(http://www.nytimes.com/library/financial/072400deutsche-voicestream.html)
GERMAN WIRELESS GIANT TO BUY U.S. CARRIER IN $56 BILLION DEAL
[SOURCE: Washington Post (A08), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A32359-2000Jul23.html)

DEUTSCHE TELEKOM DEAL: DID BARRIERS FALL IN EUROPE, JUST TO RISE IN THE U.S.?
Issue: Mergers/Regulation
Members of Congress, led by Sen Ernest Hollings (D-SC), and FCC Chairman
Bill Kennard have voiced opposition to Deutsche Telekom's purchase of an
American company, VoiceStream Wireless. But blocking a Deutsche Telekom deal
could invite retaliation against American communications companies active in
Germany and elsewhere in Europe, and might also run afoul of United States
commitments to the World Trade Organization. Sen Hollings has proposed
legislation that would block the FCC from transferring, for at least a year,
a radio license to a company in which a government owns a significant stake,
even if it is less than 50 percent. Separate legislation supported by Sen
Trent Lott (R-MS) would effectively block acquisitions by such companies on
a permanent basis. The German government owns 57% of DT and some fear that
the government could subsidize unfair competition or use its regulatory
power to favor DT in Germany over foreign rivals.
[SOURCE: New York Times (A8), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/library/financial/072400deutsche-assess.html)

TELEVISION/RADIO

RADIO HOST APPEALS TO LISTENERS AS PROTEST LED BY GAY GROUPS CUTS INTO
ADVERTISING
Issue: Advertising
Dr Laura Schlessinger has lost ~10% of her national advertisers including
Toys "R" Us, United Airlines, AT&T, Kraft, General Foods and Xerox due to a
campaign led by the Gay and Lesbian Alliance Against Defamation and a group
called Stopdrlaura. Dr. Schlessinger has described homosexuality as
"deviant" and derivative of "biological error." "We are letting all
advertisers for Dr. Laura know about the rhetoric," said John Aravosis,
co-founder of stopdrlaura.com, which keeps tabs on developments with her
radio and television programs. "If they think that Dr. Laura is bad for
business, it's their choice -- it's a free country and a free market."
Ultimately, he said, he would like to see Paramount cease production of the
Dr. Laura show. A Dr. Laura television show is planned for September 11.
[SOURCE: New York Times (C2), AUTHOR: Jim Rutenberg]
(http://www.nytimes.com/library/financial/072400dr-laura.html)

FCC REQUIRES TV BROADCASTERS TO OFFER VIDEO DESCRIPTION FOR VISUALLY
IMPAIRED
Issue: Disabilities
The FCC has voted to require broadcasters affiliated with the four major
networks in the top 25 television markets to offer video-description
services of television shows by April 2002. The vote has come 19 years after
technology to deliver the service was created. Broadcasters are unhappy and
say the process will cause
technical problems. The services will provide spoken descriptions of
scenery, costumes or key actions during television shows. Under the new
rules, video description would be provided for about four hours a week
during prime time or children's programming. To receive video descriptions,
a television has to be tuned to its secondary-audio-programming channel.
Most stereo TVs are already equipped to receive the SAP channel. The
National Association of Broadcasters and the National Cable Television
Association opposes the measure, citing technical difficulties and a lack of
FCC authority. The NAB pointed out in an FCC filing that the plan would
require expensive engineering upgrades of "soon-to-be-obsolete" analog
systems that are being phased out and replaced with digital technology. [For
more, see www.fcc.gov]
[Wall Street Journal (B12), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB96439020930314962.htm)

HIGH DEFINITION TELEVISION
Issue: DTV
Tuesday, July 25, 2000 10:00 a.m. in 2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection
oversight hearing on High Definition Television (HDTV) and related matters.
Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

ARTS

STEPHEN KING SOWS DREAD IN PUBLISHERS WITH LATEST E-TALE
Issue: pUBLISHING
Is Stephen King's journey into e-publishing a reflection of a new age, or an
author's celebrity? With today's release of "The Plant," King becomes the
first major author to self-publish on the Internet. King's decision to
forego publishing with his traditional publishing house has touched off a
debate as to whether the Web can liberate authors from their dependence
on publishers, or just make it easier for truly famous people to rally their
fans. Mr. King says he hopes to advance the cause of online publishing by
whetting readers' appetite for electronic books. Publishers and authors will
be watching closely. In March, Mr. King published his novella "Riding the
Bullet" in electronic form. More than 400,000 eager fans logged on to
download it as soon as it debuted. Since then, all the major publishers have
beefed up their output of electronic books. As one of the industry's
best-selling authors, King's decision to publish by himself is a
disappointment to his publishing house, Simon & Schuster. But it is also a
testament to his personal clout. Most authors, even those who do not work on
advances, still need the publisher's marketing and publicity clout. Now some
say the advent of the Web may change that. By self-publishing an author can
make far more than he or she would, if they have the right payment plan.
King's plans for "The Plant" is an honor-system payment plan: King is
trusting his readers to send him a dollar after each download.
[SOURCE: New York Times (C1), AUTHOR: David Kirkpatrick]
(http://www.nytimes.com/library/books/072400king-online.html)

ART, CULTURE, AND THE NATIONAL AGENDA
Issue: Arts
The Center for Arts and Culture announces a major initiative: Art, Culture,
and the National Agenda. This project -- a series of briefing papers, a
final volume, and public programs -- highlights key policy challenges in
arts and culture facing the next Presidential administration and Congress.
Coverage of issues is broad, ranging from historic preservation to arts
education, to intellectual property and cultural exchange. Release of
individual briefing papers will begin in the fall of 2000. See
(http://www.culturalpolicy.org/research/challeng.htm) for more info.
[SOURCE: Electronic Policy Network]
(http://www.epn.org/whatsnew/full_cite/189.html)

INTERNET

FBI FACES MORE PRESSURE TO DISCLOSE CODE FOR E-MAIL SURVEILLANCE SYSTEM
Issue: Internet Privacy
The FBI is refusing to disclose the secret blueprints for its Carnivore
surveillance system in spite of increasing pressure from groups as diverse
as the ACLU to Congress. FBI officials maintain that disclosing the
software's source code would allow
hackers to find ways to defeat the system, and argues that such a disclosure
could violate copyright protections because Carnivore includes portions of
software code from a product licensed to the Government by an unidentified
vendor. Congress is expected to press senior FBI officials on the subject at
a hearing Monday before a House Judiciary Committee panel. One scheduled
witness for the hearing, Matthew Blaze, an AT&T researcher, says the FBI's
failure to fully disclose how Carnivore works has contributed to an
"atmosphere of mistrust and confusion." In attempting to assuage fears, the
FBI has tentatively agreed to an examination of Carnivore by university
researchers who would promise not to disclose its blueprints. The ACLU, one
of the groups that has requested the source code, said it might agree to
such an offer, if the FBI gives the blueprints to the ACLU and lets it
select the experts.
[Wall Street Journal (A6), AUTHOR: Ted Bridis]
(http://interactive.wsj.com/articles/SB964386822942323349.htm)

NEW ECONOMY: CONTRADICTIONS ABOUND IN PUBLIC CONCERNS OVER NET PRIVACY
Issue: Privacy
Americans don't want anyone watching them, but they flock to look at others
as on the TV show "Big Brother." There's other contradictions, too. If
people are so concerned about privacy, why then are Napster and Gnutella so
popular when these programs give strangers access to a PC's hard drive? "In
the case of choosing to supply any service to the world, like Napster, it's
your own choice to do so, and you can calculate the risk and reward," said
Mark Seiden, chief consultant at Securify, a network security consulting
firm. "In the case of corporate spyware and the government, you are unaware
of what they're doing until some reverse-engineering whistle-blower
embarrasses the offenders. Meanwhile, they might have been watching you for
years." If "Big Brother" is a social psychology experiment about privacy and
group dynamics, so is that big, diverse group house known as the Internet.
"There probably are real differences among people in the extent to which
they are willing to entrust private information to others," writes Anthony
G. Greenwald, a social psychology professor the University of Washington,
who has used the Web to conduct experiments among volunteers. "Because some
are more trusting than others, there should be a segmentable market for
things that will attract the more trusting (online shopping, music via
Napster, opening messages that may contain viruses). And there is also a
market for things that appeal to the less trusting (alarm systems, unlisted
phone numbers, etc.). We have an unattractive name for those who seem to
live in excessive fear of attacks on their person or identity -- paranoid --
but I don't know of a name for the opposite."
[SOURCE: New York Times (C4), AUTHOR: Tim Rice]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/24neco.html)
See Also:
COOKIES ARE STARTING TO CRUMBLE, MAKING ONLINE ADVERTISERS WORRY
[Wall Street Journal, AUTHOR: Sarah Ellison]
(http://interactive.wsj.com/articles/SB964377517769164648.htm)

IN THE AGE OF NAPSTER, WE FACE COPYRIGHT GAP
Issue: Intellectual Property
With concern about Napster and Gnutella running at a fever pitch, the
ability to protect intellectual property appears to be evaporating, now that
millions of users have access to technology that lets them swap songs,
movies or anything else that can be stuffed into a computer file. Although
Gnutella and Napster seem to have won the first rounds of battle over
copyright, there's still plenty of intellectual property that hasn't been
Napsterized -- not just popular fare like novels, but also high-value
content like textbooks and market research. Using the same kinds of
high-tech codes that protect your credit-card numbers from prying eyes on
the Net, Internet companies are developing ways to lock up digital content
so that only paying customers have the key to open a movie or song file,
dubbed Digital Rights Management (DRM). The goal of DRM systems is to make
digital content behave in a way that parallels a consumer's rights. When
someone buys a song in digital form, it should behave in a way that makes it
easy for the purchaser to listen to, and even lend to a friend, but highly
impractical to duplicate on a large scale. To do that, DRM systems seal up
content in a tamper-proof electronic box protected by mathematical codes
that are practically impossible to break. Legitimate users get the
appropriate cyber-keys. Those keys can be overt, like a password, or hidden
away on your computer or associated with a particular Internet address. If
DRM companies can get it right, their systems could open up new
possibilities -- and new ways for authors, artists and publishers to make
money. "You have so much flexibility here," says Ranjit Singh,president of
ContentGuard, a Xerox spinoff that develops DRM technology. Consumers could
buy a season-pass style subscription to all of a particular publisher's
books, or buy only the songs they want from an album.
[Wall Street Journal (B1), AUTHOR: Tom Weber]
(http://interactive.wsj.com/articles/SB964393135511242951.htm)

RIVALS COMPLAIN ABOUT AOL'S PLAN TO OPEN INSTANT MESSAGING SERVICE
Issue: Internet
More than a dozen Internet companies Friday criticized AOL's plan to open
its instant-messaging network to competitors, questioning the validity of
AOL's claims that existing approaches to interoperability compromise user
privacy. The companies, including Microsoft, are fighting to connect their
competing instant-messaging networks with AOL Instant Messenger, the most
popular person-to-person chatting service. AOL has said any
"interoperability" standard or common protocol that allows competing
instant-messaging systems to communicate with its own must protect the
privacy and security of AOL users. This assertion by AOL was questioned
Friday in a "white paper" submitted by the Internet companies to the FCC and
to the Internet Engineering Task Force (IETF), a technical standards group.
The paper also questioned why AOL didn't mention a timetable for the
development of an interoperability standard. An AOL spokeswoman said the
company is willing to work with its competitors. "AOL's submission to the
IETF is crystal clear about how the industry can get to true world-wide
interoperability while protecting users' privacy and security," said the AOL
spokeswoman.
[Wall Street Journal (Interactive), AUTHOR: Staff Reporter
(http://interactive.wsj.com/articles/SB964396415866343389.htm)

INTERNET FREEDOM AND BROADBAND DEPLOYMENT ACT
Issue: Broadband
Thursday, July 27, 2000 11:00 a.m. in 2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a hearing focusing on H.R. 2420, the Internet Freedom and
Broadband Deployment Act of 1999. Witnesses will be by invitation only
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

BROADBAND INTERNET REGULATORY RELIEF
Issue: Broadband
Full Senate Commerce Committee hearing on Wednesday, July 26, at 9:30 a.m.
in room 253 of the Russell Senate Office Building. Senator Sam Brownback
(R-KS) will preside. Witnesses will be announced at a later time.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-195.htm)

INTERNATIONAL

TELECOM GIANT STILL REIGNS IN JAPAN
Issue: International
While U.S. Trade Representative Charlene Barshefsky may have succeeded in
securing an agreement that requires Nippon Telegraph and Telephone Corp. to
cut connection charges to American and other foreign carriers by $1 billion
a year, many experts wonder if there will ever be real competition in
Japan's information industries as long as NTT retains its stranglehold over
the nation's fixed-line phone network. NTT's fixed-phone-line business,
which was recently split into two regional phone giants--NTT East and NTT
West, controls access to more than 95 percent of the nation's fixed phone
lines. With annual revenue of nearly $100 billion, the company is the
world's largest telecommunications conglomerate. Some analysts assert that
nothing short of a complete breakup -- a la U.S.'s 1984 dissolution of AT&T
-- will enable Japan's information technology industry to become
globally competitive. However, even some of the most outspoken advocates of
liberalization in Japan's telecommunications industry say that a complete
breakup of NTT might not be necessary as long as the government can find
ways for rival carriers to connect Japanese businesses and households to the
Internet.
[SOURCE: Washington Post (H01), AUTHOR: Clay Chandler]
(http://washingtonpost.com/wp-dyn/articles/A28243-2000Jul22.html)

ALL THE IRANIAN NEWS, ALL THE TIME
Issue: International
Last month National Iranian Television (NITV) began broadcasting out of a
North Hollywood, Calif. warehouse. NITV is a 24-hour satellite television
station. The station features Farsi-language news, lifestyle and cultural
programming, and is among several Iranian-American TV stations based in Los
Angeles where there are an estimated 600,000 Iranians. But NITV is the first
Iranian channel to broadcast to a worldwide audience. Programming runs on a
12-hour cycle; the broadcast is repeated during daytime hours in Tehran.
NITV's founder, Zia Atabay, says the station's purpose is to culturally
unite Iranian expatriates in the United States, Canada, Europe, Australia
and elsewhere. Its other goal is to show Iranians what life is like in
America. The station - while not political - does have shows which address
such issues as religion, freedom and culture clash, which, Mr. Atabay
admitted, are inherently political. "We are not going to say who or what to
support, but we are going to promote change," he said. Especially prominent
are messages about liberated women. NITV's audience is difficult to measure,
particularly in Iran, where most viewers use illegal satellite dishes. "At
this stage, I don't think the quality of NITV is going to matter, because
they'll watch almost anything that comes from Los Angeles," Mr. Javid added,
noting that for most Iranians, Los Angeles typifies American culture. "But
in the long run, the station will have to prove itself with good programming."
[SOURCE: New York Times (C11), AUTHOR: Jordan Raphael]
(http://www.nytimes.com/yr/mo/day/news/financial/iran-tv.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 7/21/2000

DIGITAL DIVIDE
In Tokyo, Rich Pay Heed to the Poor (WP)

INTERNET
California Offers Online Voter Registration (SJM)
New Privacy Software From Microsoft (NYT)
Record Firms, Studios Sue Scour, Alleging Theft Via Its Site on Web
(WSJ)

TELEPHONY
For FCC, the Equation = x11 (WP)
Seven Attorneys General Are Suing WorldCom Over Long-Distance Ads
(WSJ)

MERGERS
FCC Vows Scrutiny of Foreign Takeovers (WP)

DIGITAL DIVIDE

IN TOKYO, RICH PAY HEED TO THE POOR
Issue: Digital Divide/International
In Tokyo, leaders of the rich industrialized countries are taking pains to
express their concern for the rest of the world. The leaders of Japan,
Britain, France, Italy and Canada hosted their counterparts from a
half-dozen poor countries in an unprecedented two-hour meeting on the plight
of the developing world. The leaders debated remedies for poverty, disease,
illiteracy and pollution. This weekend, Japanese Prime Minister Yoshiro
Mori, hopes to make the "digital divide" a central theme of the gathering.
Proposals to speed debt relief for the world's poorest countries will be
among the few issues of genuine substance on their agenda. This
compassionate convening is a departure from the origins of the summit: The
first summits were put together so that the rich countries could coordinate
economic policies and provide moral support for one another. Representatives
from the developing countries--and the many anti-poverty groups who have
come to Okinawa this weekend to lobby on their behalf--say they remain
skeptical that the kinder, gentler tone of recent summits will be
accompanied by meaningful assistance. The topic of debt relief has remained
an obstacle to the type of assistance the developing countries are seeking.
While last year's meeting promised major debt relief for many countries, the
failure to meet the strict debt relief conditions have kept most eligible
nations from that debt forgiveness.
[SOURCE: Washington Post (A19), AUTHOR: Clay Chandler]
(http://washingtonpost.com/wp-dyn/articles/A15529-2000Jul20.html)
See Also:
BILLIONS LEFT STANDING ON THE SIDE OF THE INFORMATION SUPERHIGHWAY
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/015812.htm)

INTERNET

CALIFORNIA OFFERS ONLINE VOTER REGISTRATION
Issue: Internet/Politics
Californians will now be able to register to vote without even leaving their
homes. Secretary of State Bill Jones has announced the launch of an online
voter registration program that allows citizens to visit his Web site, fill
out a form and then sign and return a card sent to them in the mail. "With
this new project, voters won't have to leave their home or even worry about
putting a postage stamp on the form when registering to vote,'' Jones said.
In addition to allowing citizens to register, the site, www.ss.ca.gov,
offers important information for voters, including pamphlets, information
about initiatives and campaign finance reports of campaigns receiving or
spending more than $100,000. The secretary of state has also set up a
blue-ribbon panel of computer executives and election experts to develop a
way to vote via the Internet. But Jones said earlier this year that devising
a foolproof online voting system would be difficult and could take several
years.
[SOURCE: San Jose Mercury News, AUTHOR: Contra Costa Times]
(http://www.mercurycenter.com/svtech/news/front/docs/vote072100.htm)

NEW PRIVACY SOFTWARE FROM MICROSOFT
Issue: Privacy
In about four weeks, Microsoft plans to introduce new software that will
warn users when advertisers or other third parties are trying to place files
on their computers -- called "cookies" -- to be used for tracking surfing
patterns or other private information. The software was developed as an
attempt to provide consumers with the ability to make intelligent security
decisions by letting them know when cookies are being uploaded to their
computers. The user will see a box pop up on the display, asking whether the
computer should accept that particular cookie. It also lets the user ban all
third-party persistent cookies if desired. "This is a great sign," said
Jason Catlett, president of the privacy group Junkbusters. "Of course, many
people are using quite old versions of the various browsers, so it will take
some time before many people are using it."
[New York Times (Online), Associated Press]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/21soft-cookies.h
tml)

RECORD FIRMS, STUDIOS SUE SCOUR, ALLEGING THEFT VIA ITS SITE ON WEB
Issue: Intellectual Property
Major movie studios and recording companies have sued Scour, a Web site that
allows users to exchange films and songs. The copyright infringement suit,
the latest attack on Internet file-sharing services was filed in U.S.
District Court in New York, and sets precedent as the first lawsuit by the
entertainment establishment against one of its own. Longtime Hollywood power
player Michael Ovitz is one of Scour's minority owners, although he is not
expected to be with the company much longer. He is concerned that his
investment in Scour places him on the "wrong side" of the piracy issue. The
suit accuses Scour of creating "a vehicle for global piracy of copyrighted
motion pictures and sound recordings" with its Scour Exchange program. Like
Napster, the program allows users to trade music online, in addition to
other content like movies and photos. So far however, the market impact of
such file-sharing services is unclear. A survey to be released Friday by
Jupiter Communications found that Internet song listeners were likely to
increase their music purchases.
[Wall Street Journal (B6), AUTHOR: Anna Wilde Mathews and Bruce Orwall]
(http://interactive.wsj.com/articles/SB964118820128930403.htm)
See Also:
MOVIE AND RECORD COMPANIES SUE A FILM TRADING SITE
[SOURCE: New York Times (C2), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/21music.html)

TELEPHONY

FOR FCC, THE EQUATION = x11
Issue: Telephony
If the FCC gets the green light, new uses of various 3- digit "x11" numbers
will open up. Specifically, the Federal Communications Commission is
planning to give the telephone numbers 511 and 211 to nonprofit and
government agencies. The FCC would also fully implement 711, a number set
aside to assist the disabled in making phone calls. One of the new numbers
will help create traffic telephone hotlines to help increasingly mobile
Americans find helpful information no matter where they may be. Nonprofit
groups are prepared to fund the 211 number as a way to refer services to
families needing food or shelter, counseling or crisis hot lines. The
nonprofits note that where a 211 number already is in effect--in all of
Connecticut and Atlanta--the volume of calls seeking assistance increased 40
percent. A 101 on the x11s: 211: Community information and referral
services; 311: Non-emergency government services; 411: Directory assistance;
511: Traffic and travel conditions; 611: Usually, telephone companies'
repair office; 711: Deaf access services; 811: Usually, telephone companies'
business office; 911: Emergency.
[SOURCE: Washington Post (E01), AUTHOR: Caroline E. Mayer]
(http://washingtonpost.com/wp-dyn/articles/A15193-2000Jul20.html)

SEVEN ATTORNEYS GENERAL ARE SUING WORLDCOM OVER LONG-DISTANCE ADS
Issue: Telephony
Seven states are suing the No. 2 long-distance carrier WorldCom, accusing it
of deceptive advertising and forcibly switching customers to its
long-distance service without their consent, a practice known as "slamming."
The suits come a little more than a month after WorldCom agreed to pay $3.5
million as part of an agreement with federal regulators to settle slamming
charges. New Jersey Attorney General John J. Farmer said WorldCom's "Five
Cents Everyday" program doesn't apply to toll calls made within New Jersey
and is only available from 7 p.m. to 6:59 a.m., but those facts weren't
adequately disclosed to customers. Farmer and other attorneys general also
note the plan comes with a service fee of $4.95 per month, a minimum
long-distance charge of $5, a carrier-access charge of $1.46, and a federal
fee of 7.2% of all long-distance calls. The California attorney general
charges that WorldCom added unauthorized charges to consumers' telephone
bills and that the actual costs of some services exceeded advertised rates.
In addition, WorldCom's customer complaint lines were understaffed, and some
consumers who called with complaints were kept on hold for more than an hour
or disconnected, the suit charges.
[Wall Street Journal (Interactive), AUTHOR: Associated Press]
(http://interactive.wsj.com/articles/SB96413571941093339.htm)
See Also:
WORLDCOM ACCUSED OF DECEPTIVE ADVERTISING
[SOURCE: San Jose Mercury News, AUTHOR: Joshua L. Kwan]
(http://www.mercurycenter.com/svtech/news/front/docs/mci072100.htm)

MERGERS

FCC VOWS SCRUTINY OF FOREIGN TAKEOVERS
Issue: Mergers
Federal Communications Commission Chairman William E. Kennard said yesterday
the agency would "closely scrutinize" acquisitions of U.S.
telecommunications firms by companies that are controlled by foreign
governments. "Please be assured that I will carefully scrutinize any
transaction in which a foreign government-controlled telecommunications
carrier seeks to control a U.S. carrier," Kennard wrote in a letter. The
Chairman was responding to concerns raised in a letter by Sen. Ernest F.
Hollings (D-S.C.) and 29 other senators that Deutsche Telekom AG and other
foreign companies are targeting the lucrative American telecommunications
business for acquisitions. Earlier this week, Hollings inserted into a
spending bill a provision that would prohibit firms owned by foreign
governments from operating telecommunications companies in the United
States. Under current law, firms with greater than 25 percent foreign
ownership are prohibited from buying "common carriers," but the FCC can
allow exceptions to the rule. Deutsche Telekom--57 percent of which the
German government owns--has recently made clear that it wants to move into
the U.S. market, with a recent $53 billion bid for VoiceStream Wireless.
[SOURCE: Washington Post (E03), AUTHOR: Neil Irwin]
(http://www.washingtonpost.com/wp-dyn/articles/A16377-2000Jul20.html)

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

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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:
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Communications-related Headlines for 7/20/2000

INTERNATIONAL/DIGITAL DIVIDE
High-Tech Executives Urge Action on World's Digital Divide (NYT)
Camp Introduces Kids To High Tech (SJM)
Japan and US Reach Trade Pact on Telecommunications (NYT)

ONLINE PUBLISHING
CNet Is Buying What Remains of Ziff-Davis (NYT)
Stephen King Bucks Publisher (WP)

INTERNET
AOL Could Hook Up Phone Service (USA)
Microsoft, Net2Phone Sign Pact Allowing Free Calls by
Instant Messaging Users (WSJ)
Internet is Lowering the Cost of Advertising and Searching
for Jobs (NYT)
Unknown Musicians Find Payoffs Online (NYT)
FBI Says Carnivore Tool Won't Eat Up Privacy (WSJ)

MERGERS
Disney Preemptively Seeks AOL Time Warner Split (WP)
Deutsche Telekom Bids for Wireless Company (NYT)
Blockbuster, Enron Enter Agreement To Supply Movies Via
Phone Lines (WSJ)

INFOTECH
Project Gives Small Nonprofit Groups a Big-Time Mapping Tool (NYT)

CONGRESSIONAL HEARINGS
Spectrum Management (NTIA)
Independent Telecommunications consumer Enhancement Act
of 2000 (House)

INTERNATIONAL/DIGITAL DIVIDE

HIGH-TECH EXECUTIVES URGE ACTION ON WORLD'S DIGITAL DIVIDE
Issue: Digital Divide
A task force established by the World Economic Forum urged the wealthiest
nations to take action to erase a growing digital divide resulting from
economic chasms between developed and developing nations. The World Economic
Forum, which is a policy organization made up of many of the world's largest
corporations that meets annually in Davos, Switzerland, presented a series
of proposals on the issue to Japan's prime minister, Yoshiro Mori. The
proposal, prepared at Japan's request this year at the Davos meeting,
also includes the creation of a Peace Corps-style volunteer group, the
Global Digital Opportunity Corps, and the establishment of local technology
community centers. "I'd like to make this an information technology
discussion, mainly focusing on the developing nations," Mr. Mori said. "This
digital divide issue is a crucial matter." Although the digital divide issue
has been seized on in the last year, there is disagreement over what the
divide represents. "It's really not a digital divide, said Richard T. K. Li,
chairman and chief executive of the Pacific
Century Group, an Internet company based in Hong Kong. "It is an education
divide, and information technology is only a conduit to promote education."
Other companies represented on the task force include Sun Microsystems,
Microsoft, Yahoo, 3Com, Motorola, Hewlett-Packard, Novell and Alcatel.
[SOURCE: New York Times (A6), AUTHOR: John Markoff]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/20digital.html)

CAMP INTRODUCES KIDS TO HIGH TECH
Issue: Digital Divide
Many of the fifty Bay Area (CA) kids attending a computer camp this week
sponsored by the non-profit agency, Future Partners, say they now want to be
programmers or engineers when they grow up. Participants recommended by
their teachers and local Boys and Girls clubs will attend a six day program
at the University of California-Berkeley, receive a personal computer, a
mentor and three years of Internet access. "In my neighborhood there is no
source of computers to do my homework," wrote Beck Xathavisouk, a
13-year-old from San Francisco, in his application essay. "The only place
for me to do my homework or a report is the Boys and Girls club." He
explained, however, that it was dangerous to go there at night.
[SOURCE: San Jose Mercury News, AUTHOR: Sara Neufeld]
(http://www.mercurycenter.com/svtech/news/front/docs/camp072000.htm)

JAPAN AND US REACH TRADE PACT ON TELECOMMUNICATIONS
Issue: International
Nippon Telegraph and Telephone has long enjoyed a virtual monopoly in Japan.
However, a United States-Japanese trade agreement was reached that would
likely make telecommunications services in Japan far more affordable,
competitive and diverse. The central feature is cuts in the fees that N.T.T.
charges other telecommunications companies to use its domestic network,
which covers 98 percent of the lines to all customers. The agreement will
lower these costs by an average of 35 percent in two years and by at least
40 percent over three years. The charges have consumed nearly 40% of
N.T.T.'s competitors' revenue, effectively stifling competition. "By how
many percent interconnection fees are cut and whether it takes place over
two or three years is not really very important," said Harumasa Sato, a
professor at Konan University in Kobe and a telecommunications policy
expert. "The important thing is that it may lead to fundamental reform of
regulation that will create fair competition in this market." The agreement
came partially out of a well-fought marketing campaign by the United States
trade representative's office.
[SOURCE: New York Times (C3), AUTHOR: Stephnie Strom]
(http://www.nytimes.com/library/financial/072000japan-us-telecom.html)

ONLINE PUBLISHING

CNET IS BUYING WHAT REMAINS OF ZIFF-DAVIS
Issue: Online Publishing
CNet, one of the more profitable Internet companies, will purchase
Ziff-Davis and ZDNet for $1.6 billion in stock. The deal signals the degree
to which CNet, an upstart in the days when Ziff-Davis was a formidable
presence in the technology industry, has managed to surpass its main rival,
from which it took many of its early cues. The combine company will be the
8th-largest Internet property with 16.6 million users. Acquiring ZDNet gives
CNet a way to increase its audience at a time when the Internet is fast
approaching saturation, analysts say. "They're buying additional customers
rather than trying to steal them away," said Robert Martin, senior Internet
analyst at Friedman, Billings, Ramsey & Company. "It's a good way of
extending their lead in market share."
[SOURCE: New York Times (C1), AUTHOR: Winter & Kuczynski]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/20ziff.html)
See Also:
CNET TO ACQUIRE ZIFF-DAVIS
[SOURCE: San Jose Mercury News, AUTHOR: Joelle Tessler]
(http://www.mercurycenter.com/svtech/news/top/docs/cnet072000.htm)

STEPHEN KING BUCKS PUBLISHER
Issue: Online Publishing
Last winter, Stephen King's proved he did not need a traditional book to
reach his readers. Now King is proving he doesn't need a publisher. Starting
Monday morning, King's fans will be able to go to download the beginning of
a novel called "The Plant" from his Web site (www.stephenking.com). This
marks the first time in modern book publishing that the publisher is
being cut out of the printing and distribution of a major release. Here's
how it works: the honor system. Specifically, if more than 75 percent of the
people who download that first chapter send King a dollar, he'll keep
writing. If not, he'll pull the plug after the second installment next
month. "Will it work?" King writes on his Web site. "My kids, who know a lot
more about the Web than I do, say no way." My accountant...says he thinks it
will." Of course not every author could pull this off. But King, who enjoys
a huge audience for his physical books, also has had a some success in the
e-publishing realm. Last year King's "Riding the Bullet," e-published
jointly with Simon & Schuster, sold about 500,000 copies at $2.50 each. King
and the publisher split the profits evenly. Because of King's cult status,
many expect "The Plant" to have a filter-down effect among writers and
publishers. "This is the moment that everyone has been fearing," said
publishing consultant Lorraine Shanley. "It will raise the bar for
publishers," forcing them to prove that they actually add value to the
electronic publishing process. If only 20 percent of the people who bought
"Bullet" pay for 10 parts of "The Plant," King would earn $1 million. But
King says he is doing it for others. "If I could break some trail for all
the midlist writers, literary writers and just plain marginalized writers
who see a future outside the mainstream, that's great," he writes on his
site.
[SOURCE: Washington Post (A1), AUTHOR: David Streitfeld]
(http://www.washingtonpost.com/wp-dyn/articles/A8784-2000Jul19.html)

INTERNET

AOL COULD HOOK UP PHONE SERVICE
Issue: Internet/Telephony
America's number one Internet service provider, AOL, is eagerly getting its
feet wet in the old fashion phone business. Experts predict that many of the
major Internet portals will begin to offer phone features. Instead of competing
head-to-head with local phone providers, AOL will likely offer consumers
customized PC-based phone services. Calls would be carried partially over
the Net and partially over traditional phone networks. AOL is likely to combine
it's instant messaging service with phone applications, so users could go
back and forth between written and spoken communication. Some experts
speculate that such plans are at the root of AOL's reluctance to allow users
of rival instant-messaging services communicate with users of its own.
[SOURCE: USAToday (6B), AUTHOR: Paul Davidson]
(http://www.usatoday.com)

MICROSOFT, NET2PHONE SIGN PACT ALLOWING FREE CALLS BY INSTANT MESSAGING
USERS
Issue: Telephony
Microsoft has signed a deal with Net2Phone to allow Microsoft instant
messaging users to make FREE LONG DISTANCE! phone calls over the Web.
Net2Phone's service allows people to use Internet networks, instead of
traditional phone links, to make voice calls through speakers and
microphones on their computers. The new calling feature will be integrated
into the newest version of Microsoft's MSN Messenger service, which launches
Thursday. The service, like larger instant-messaging services run by AOL,
allows people to set up "buddy lists" of online friends and chat with them
onscreen in real time. The Microsoft service will be the only free Net2Phone
offering. Net2Phone plans to make money off the deal by selling
advertisements that will appear on screen every time Microsoft users connect
to the new service to make a phone call. However, in a similar
service with AOL, Net2Phone plans to charge about a penny a minute for
domestic calls. The new offering means that "18 million people can log on
[today] and get free long distance," Sarah Lefko, a Microsoft product
manager, said.
[SOURCE: Wall Street Journal (B14), AUTHOR: REBECCA BUCKMAN]
(http://interactive.wsj.com/articles/SB964051130777930072.htm)

INTERNET IS LOWERING THE COST OF ADVERTISING AND SEARCHING FOR JOBS
Issue: Jobs
A look at how Internet job boards are making it easier for people to find
jobs -- and for employers to find new workers. The arcane field of economics
known as "search theory," Krueger writes, is well suited for considering the
economic impact of e-cruiting. The key concept is the "matching function,"
which governs the speed at which workers fill vacancies. Search costs slow
down job matching, which contributes to unemployment and job vacancies. The
typical job board posts help-wanted ads or collects r

Communications-related Headlines for 7/19/2000

TELEPHONY
Court Strikes Federal Rules For Phone Company Prices (NYT)
Electronic Devices Pose Traffic Threat (NYT)
Cell Phones and Safety (NYT)

MERGERS
Excite At Home Will Merge Global Assets (NYT)
Deutsche Telekom Sells Mobile Stake (NYT)
Time Warner's Levin: Disney Stance Is 'Silly' (USA)

INTERNATIONAL
British Authorities May Get Wide Power to Decode E-Mail (NYT)
Japan's NTT to Cut Telephone Rates for Foreign Carriers (USA)

EDTECH
Software Project Will Let the Library Talk to the Cafeteria (CyberTimes)

SPECTRUM
Review of the FCC's Spectrum Policies (House)
Wireless Innovations in Communications Initiative (NTIA)

TELEPHONY

COURT STRIKES FEDERAL RULES FOR PHONE COMPANY PRICES
Issue: Telephone Regulation
A Federal appeals court has struck down FCC pricing rules that were meant to
foster competition in the local telephone service market. Put simply,
Schiesel writes, yesterday's ruling could lead to an increase in the fees
that other companies pay for connecting to the networks of local carriers.
"In a nutshell I think this means these rates will go up," William P. Barr,
a former attorney general who is Verizon's general counsel, said. Using the
telecommunications shorthand "CLECs" to refer to new local phone companies
as competitive local exchange carriers, he added, "To the extent that CLECs
have been getting a free ride, that's going to stop." An AT&T official,
speaking on the condition that he not be identified by name [we're guessing
Michael Armstrong], said: "The fact that so few American consumers have a
choice of local service is regrettable. If the price for interconnection
with the incumbent network goes up, it will only make this process harder,
if feasible at all. It will hardly be a victory for public policy." "There
are no clear winners or losers in today's decision," said FCC Chairman
William Kennard in a released statement. "We will take immediate steps to
minimize any uncertainty created by this decision while continuing to foster
competition and consumer choice in local telephone service." [See Chairman
Kennard's full statement at
http://www.fcc.gov/Speeches/Kennard/Statements/2000/stwek058.html]
[SOURCE: New York Times (C2), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/yr/mo/day/news/financial/phone-fcc.html)
See Also:
COURT DECISION THREATENS PACE OF PHONE COMPETITION
A ruling from the 8th U.S. Circuit Court of Appeals in St. Louis has cast
uncertainty on the future of local phone competition. Yesterday, a federal
appeals court struck down Federal Communications Commission rules limiting
how much Bell telephone companies can charge rivals for the use of their
networks to reach customers. After the Telecommunication Act of 1996, which
was intended to promote local competition, the FCC ordered Bell companies to
lease elements of their local telephone networks to upstart competitors. The
FCC's jurisdiction to make such rules was challenged by the local phone
companies, but upheld by the Supreme Court. That prompted GTE and the other
companies to file a narrower challenge, the subject of yesterday's decision:
They attacked the method the FCC uses to weigh the costs that should be
built into its pricing rules. "This muddies the water for local telephone
competition," said Gene Kimmelman, co-director of Consumers Union in
Washington. "This will slow competitive entry."
It is unknown as to whether the FCC will appeal to the Supreme
Court.
[SOURCE: Washington Post (E03), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A1361-2000Jul18.html)

ELECTRONIC DEVICES POSE TRAFFIC THREAT
Issue: Wireless
Twenty-five percent of the 6.3 million auto accident in the US each year
involve a distracted or inattentive driver. With 44% of drivers carrying
phones with them (7% have mobile email and 3% have fax machines), the
National Traffic Safety Administration is suggesting that these drivers may
be contributing to an increase in the number of crashes. Said NTSA Deputy
Administrator Rosalyn Millman: "We are experiencing a dramatic change in
driver behavior. If we underestimate this potential risk to highway traffic
safety and do not moderate drivers' use of in-vehicle systems, the price may
be very steep." Industry representatives point out that there were similar
safety concerns after the introduction of car radios in the 1930s.
[SOURCE: New York Times (A18), AUTHOR: Reuters]
(http://www.nytimes.com/yr/mo/day/news/national/auto-tech.html)

CELL PHONES AND SAFETY
Issue: Wireless
[Editorial] The National Traffic Safety Administration has started hearings
about safety and the use of cell phones while driving. There are 91 million
mobile phone subscribers, and 85 percent of them say they occasionally talk
on their phones while driving. A 1997 Canadian study published in the New
England Journal of Medicine found an association between cell phone use and
driving accidents. The editorial concludes: So far 13 countries, including
Britain, Italy and Australia, have banned cell phone use while driving. That
is not reason enough to ban them here. But common sense suggests that the
matter deserves, at the very least, serious and comprehensive study, aimed
not at delaying action but promoting a sensible response.
[SOURCE: New York Times (A28), AUTHOR: NYT Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/19wed2.html)

MERGERS

EXCITE AT HOME WILL MERGE GLOBAL ASSETS
Issue: Mergers
Excite At Home will merge its international assets with a European rival,
Chello Broadband N.V., to create the largest high-speed Internet service
provider outside the United States. The new company, to be called Excite
Chello, will have Excite, AT&T's Liberty Media cable programming arm and
UnitedGlobalCom, as investors. Liberty's investment of 200 million euros in
Excite Chello marks the second time that it has tried to expand outside the
United States, where AT&T is the No. 1 cable-TV and long-distance company.
Excite and United Pan-Europe Communications N.V., the owner of Chello, will
each own about 43 percent of Excite Chello, and employees will own 10
percent. UnitedGlobalCom and Liberty will both have a single-digit stake.
[SOURCE: New York Times (C4), AUTHOR: Bloomberg News]
(http://www.nytimes.com/yr/mo/day/news/financial/excite-merge.html)

DEUTSCHE TELEKOM SELLS MOBILE STAKE
Issue: Antimergers
Deutsche Telekom sold its stake in Wind to its former partners France
Telecom and Enel for 2.7 billion euros ($2.5 billion U.S.). The sell-off
frees Deutsche Telekom, Germany's largest phone company, to join a bid for a
new mobile phone license in Italy. Enel will pay 600 million euros to raise
its stake to 56.6 percent from 51 percent and France T

Communications-related Headlines for 7/18/2000

TELEVISION
Govt., Cos. To Bring Internet Home (SJM)
Britons Revamp American TV (NYT)
High Definition Television (House)
Conventions: ABC Gets Help From N.F.L. (NYT)

PRIVACY/SECURITY
Proposal Offers Surveillance Rules For the Internet (NYT)
White House to "Update" the Federal Wiretap Statute (EPIC)

WIRELESS
Passage of Cellular Phone Tax May Solve E-Commerce Riddle (NYT)

INTERNET
The Web's Next Step: Unraveling Itself (WP)
Internet Access Eases Transition For the Navy's Sailors and Airmen
(WSJ)
Books by the Chapter or Verse Arrive on the Internet (NYT)

INTELLECTUAL PROPERTY
Movie Studios Seek to Stop DVD Copies (NYT)

TELECOMMUNICATION REGULATION
Japan, U.S. Close To NTT Deal (WP)
Review of the FCC's Spectrum Policies (House)
Independent Telecommunications Consumer Enhancement Act of 2000
(House)

TELEVISION

GOVT., COS. TO BRING INTERNET HOME
Issue: Digital Divide
Lawmakers and technology companies have plans to use one of the most
ubiquitous household devices -- the television -- to bring the Web to
hundreds of fourth-grade schoolchildren. The WISH TV program will provide
them with free digital set-top boxes for one-year that enable them to
receive Web services on standard televisions, plus the two-way cable
connection needed to access the Internet. Educators from several
universities are developing Web-based curriculum for participating schools
to use with children at home. WorldGate Communications, a provider of
interactive services using the TV, is spearheading the effort with support
from Rep. Billy Tauzin, (R-LA). "The idea of putting a PC in the local
library was better than nothing but it was far short of bringing the
Internet into every household in America," said Hal Krisbergh, chairman and
chief executive officer of WorldGate. Once the year is up, however, families
probably will have to pay to continue their Internet service from WorldGate
and for a cable subscription.
[SOURCE: San Jose Mercury News, AUTHOR: Kalpana Srinivasan (Associated
Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/206426l.htm)

CONVENTIONS: ABC GETS HELP FROM N.F.L.
Issue: Television/Political Discourse
ABC viewers can thank the flexible National Football League which has
rescheduled two preseason games so the television network can provide some
prime time coverage of the Republican and Democratic conventions. The
network had earlier announced that it would not pre-empt the football games
and would provide prime-time convention coverage on those nights -- Monday,
July 31, when Republicans convene in Philadelphia, and Monday, Aug. 14, when
Democrats gather in Los Angeles -- only during halftime. The games will
start an hour earlier, at 7 p.m. rather than 8 p.m., Eastern Daylight Time,
ABC officials said. That should allow convention coverage to start about 10
p.m. See the prime time convention coverage for the big three networks at
the URL below.
[SOURCE: New York Times (A15), AUTHOR: Peter Marks]
(http://www.nytimes.com/library/sports/football/071800fbn-monday-night.html)
See Also:
ADVERTISING: ESCAPING ABC'S CAMPAIGN FOR ITS FALL LINEUP
[SOURCE: New York Times (C7), AUTHOR: Bill Carter]
(http://www.nytimes.com/library/financial/columns/071800adcol-abc.html)

HIGH DEFINITION TELEVISION
Issue: DTV
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a hearing on Tuesday, July 25, 2000 at 10:00 a.m. in 2123 Rayburn
House Office Building. The hearing will be an oversight hearing on High
Definition Television (HDTV) and related matters. Witnesses will be by
invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

BRITONS REVAMP AMERICAN TV
Issue: Television
It's another British invasion. First "Who Wants to be a Millionaire" then
"Survivor." Both are 100% British-made television ideas. Millionaire may
possibly be England's most successful cultural export in the last 30 years.
"It's a bit like the old days of the British empire," said Paul Smith,
managing director of the British production company Celador, which came up
with the game show. "We've got a map of the world in the office colored in
pink where we've placed the show. Most of the world is pink."
[SOURCE: New York Times (B1), AUTHOR: Bill Carter]
(http://www.nytimes.com/library/arts/071800british-tv-invasion.html)

PRIVACY/SECURITY

PROPOSAL OFFERS SURVEILLANCE RULES FOR THE INTERNET
Issue: Privacy/Security
The White House said yesterday that it would propose legislation to set the
legal requirements for surveillance in cyberspace by law enforcement
authorities. Privacy advocates and civil liberties groups welcomed some
aspects of the proposal but were alarmed by a new FBI computer system, named
Carnivore, that searches and intercepts private e-mail. The White House also
announced that it had eased export controls on encryption technology. The
proposed legislation would require that the same standards that apply to the
interception of the content of telephone calls apply to the interception of
e-mail messages. Specifically, it would require law enforcement agents to
demonstrate that they have probable cause of a crime to obtain a court order
seeking the contents of a suspect's e-mail messages. Privacy and civil
liberties groups criticized the administration's proposal because it would
continue to permit the government use of Carnivore - a system that applies
more broadly than the taps on older technologies. Essentially a small black
box, the device screens information when connected to an ISP. Once
installed, it has the ability to monitor all of the e-mail on a network,
from the list of what mail is sent to the actual content of the
communications.
[SOURCE: New York Times (A1), AUTHOR: Labaton & Richtel]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/18secure.html)
See Also:
U.S. HOPES TO EXTEND ONLINE WIRETAPPING
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-dyn/articles/A57330-2000Jul17.html)

WHITE HOUSE TO "UPDATE" THE FEDERAL WIRETAP STATUTE
Issue: Privacy
On July 17, White House Chief of Staff, John Podesta, announced that the
Government is proposing legislation to harmonize the rules governing the
interception of electronic communications. The proposal calls for ways to
make the wiretapping rules "more effective for law enforcement while also
assuring privacy and civil liberties." Details of the legislation have not
yet been released. Podesta also announced updates to the Administration's
encryption export policy. For more information on the history of these
issues, see EPIC's Wiretap and Crypto pages.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

WIRELESS

PASSAGE OF CELLULAR PHONE TAX MAY SOLVE E-COMMERCE RIDDLE
Issue: Wireless/Ecommerce
By voice vote and with White House support, both houses approved legislation
specifying that each cell phone will have a "primary service area" for the
purpose of state and local taxes. Users pay between $4 billion and $7
billion annually in state and local cell phone user taxes, the industry
estimates. For most cell phone, the primary service area will be the address
where the bill is sent. Senator Byron Dorgan, Democrat of North Dakota, who
sponsored the Senate version of the bill, said, "This is one of those cases
where it was in everybody's interest to create simplification." Lisa Cowell,
executive direct of the E-Fairness Coalition, a group of merchants
advocating uniform application of sales taxes regardless of whether a sale
takes place in a store, by telephone or online, said the bill's passage made
it clear that the Internet taxation issue could be resolved. "A lot of
politicians have stopped hiding behind this bogyman of 'it can't be done'
because no one knows where the customer is," she said.
[SOURCE: New York Times (C6), AUTHOR: David Cay Johnston]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/18cell.html)

INTERNET

THE WEB'S NEXT STEP: UNRAVELING ITSELF
Issue: Internet
Just when it seemed the sparkle has gone out of Internet investments,
Silicon Valley financiers have found a hot new sector. It is the
peer-to-peer (P2P) market, which will allow individual computer users to
exchange video, music and text files without the involvement of a
centralized source. Billed as an anarchistic threat to the current Internet,
peer-to-peer programs threaten to undermine search engines, auction sites,
book publishers and Hollywood studios by allowing people to trade files
among themselves freely. The technology is so new that company Web sites are
often just a single page with nothing more than the name of the firm, and
aren't even willing to say what they will do, let alone how they will do it.
The best example of how P2P will work is Napster, the music-sharing
technology that allows users to download software for free. The Napster site
itself does not actually have copies of the songs and therefore does not act
like a central repository for information such as Yahoo. The March release
of Gnutella made it possible to exchange non-music files, demonstrating how
innovative this technology can be. All this is making the big Internet
companies such as eBay and Yahoo pay attention.
[SOURCE: Washington Post (A01), AUTHOR: David Streitfeld]
(http://washingtonpost.com/wp-dyn/articles/A59699-2000Jul17.html)

INTERNET ACCESS EASES TRANSITION FOR THE NAVY'S SAILORS AND AIRMEN
Issue: Internet
Richard P. Sparks II was halfway around the world when he first got a
glimpse of his newborn son from a digital photograph sent to him via e-mail.
When his son was born in December, he was aboard an aircraft carrier in the
Persian Gulf. Regular Internet access has made shipboard life more bearable
at sea. It has closed the distance between families and their loved ones,
who are often in harm's way. Mr. Sparks can't think of one sailor aboard his
ship who doesn't use the Internet to stay in touch with relatives. The
U.S.S. John F. Kennedy plays home to 2,500 sailors and 2,500 airmen. The
sailors at "Big John," as the vessel is commonly known, either carry their
own notebook computers, or they have access to 1,000 unclassified PCs on
board. Many use one as part of their duties, but if they don't, there are 10
communal PCs to jockey for in the ship's library. Cmdr. Davis Simpson, "Big
John's" information technology boss, says that the Internet has been a huge
morale booster at sea, and has eliminated the shipboard isolation that can
be depressing.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: John Dodge]
(http://interactive.wsj.com/articles/SB963848973348669346.htm)

BOOKS BY THE CHAPTER OR VERSE ARRIVE ON THE INTERNET
Issue: Electronic Publishing
Due to a deal between iUniverse and IDG Books, starting next month online
shoppers will be given the option of buying books by chapter and verse,
literally, rather than as a whole unit. Readers will be invited to create
customized books by selecting pieces of content - chapters, pictures, maps -

Communications-related Headlines for 7/17/2000

DIGITAL DIVIDE
Web Gender Gap Shrinking (SJM)
Q&A: Eric Benhamou On Building Online Communities
(SJM)

INTERNET
Internet Regulators Approve Creation Of at Least One More
Top-Level Domain (WSJ)
ACLU Requests More Information On FBI System to Monitor E-Mail (WSJ)
JDS Who? Fast Growth, Farflung Fold And Worries (NYT)
Public Lives: Cybersenator Defends the Net, Despite
Some Sour Notes (NYT)
Web Piracy Is Hitting Hollywood Sooner Than the
Studios Thought (WSJ)
Two New Web Sites Cover Political Races (NYT)

KIDS & MEDIA
Aether, Sylvan to Develop Wireless Devices for Students (WP)
More Teens Get Cellphones So They Can Phone Home (USA)

TELEVISION
TV Advertising Drives Fight Over Audience Size (NYT)
Your TV's Little Black Box Is Growing Up (USA)

RADIO
New Economy: Two Different Fronts of Growth in
Satellite Radio Industry (NYT)

OWNERSHIP
AOL-Time Warner Merger Triggers Disney Objections (WSJ)
Minority Media Ownership Roundtable (NTIA)

INFOTECH
Microsoft Sees Software 'Agent" as Way to Avoid Distractions (NYT)

INTERNET

WEB GENDER GAP SHRINKING
Issue: Digital Divide
Women now make up half the U.S. online population, according to researchers
at Jupiter Communications. That's up from about 40 percent in 1996. "Looking
back to 1995, I don't know anyone who predicted we would have made these
kinds of gains in five years," said Adam Powell, vice president for
technology and programs at the Freedom Forum. About one-fifth of the
increase comes from women over age 50, many of whom went online for health
research, according to a May study of adults by the Pew Internet and
American Life Project. "The Internet has begun to look a lot like the rest
of America," said Lee Rainie, who directs the Pew project. "In the early
days, it was a pretty unique, select group of folks." While women are making
online gains in industrialized countries, they still lag in many developing
nations. Men currently make up 59 percent of the online population
worldwide, according to a March survey of 34 countries by the Angus Reid Group.
[SOURCE: San Jose Mercury, AUTHOR: Anick Jesdanun
(Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/199147l.htm)

Q&A: ERIC BENHAMOU ON BUILDING ONLINE COMMUNITIES
Issue: Digital Divide
Eric Benhamou, chairman and CEO of 3Com Corp., will this week lead a
discussion on the practical solutions to the digital divide. Benhahmou says
that there has been a lack of a strong voice on this topic coming from the
information technology industry. He disagrees with people who trivialize the
issue as just a luxury. "It is not a luxury," said Benhamou. "It is now the
foundation of the New Economy." The 3Com Chairman believes that in addition
to lowering cost and increasing speed, it is essential to focus on making
technology radically simpler. He said that this is an important step toward
increasing access. President Clinton has described it in terms of ABC:
access, basic skills and content. Benhamou suggest that the letter "D", for
desire, should be added to President equation. "People may have the access
and even the ability to develop skills -- and for whom the content is
available -- and yet not have the desire."
[SOURCE: San Jose Mercury, AUTHOR: Tracy Seipel]
(http://www.mercurycenter.com/svtech/news/front/docs/qa071700.htm)

INTERNET

INTERNET REGULATORS APPROVE CREATION OF AT LEAST ONE MORE TOP-LEVEL DOMAIN
Issue: Internet
The Internet Corporation for Assigned Names and Numbers (ICANN)has moved
forward on assigning at least one new top-level domain name (TLD) to join
the existing and more familiar .com, .net and .org. So which will it be?
.Nom? .Biz? .XXX? The board did not say how many or which names it would
add, citing the possibility of adding as many as ten new names or as few as
one. The body's decision comes as businesses and users resort to
increasingly arcane or longer Web addresses, as traditional addresses and
one-word addresses are increasingly rare, or priced exorbitantly high.
Whichever TLDs it adopts, ICANN will have to deal with corporations calling
for copyright protection. In particular they have been urging ICANN to allow
them to preregister their trademarks as Web addresses in any new domain
before the process is opened publicly. [So, now do you see how new TLDs will
open up it makes sense for the rest of us to have new TLDs?] ICANN has
indicated it ultimately intends to add a range of domains, including general
suffixes -- such as "shop," "web" or "biz" -- that will be available to
anyone, and specialized domains such as "union" or "bank" that would be
available as addresses only to appropriate organizations.
[SOURCE: Wall Street Journal (), AUTHOR: TED BRIDIS]
(http://interactive.wsj.com/articles/SB963587718347397126.htm)
See Also:
ICANN VOTES TO ADD MORE DOMAIN NAMES
[SOURCE: New York Times (C8), AUTHOR: Bloomberg News]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/17name.html)

ACLU REQUESTS MORE INFORMATION ON FBI SYSTEM TO MONITOR E-MAIL
Issue: Privacy
ACLU filed a Freedom of Information Act request with the FBI Friday, asking
the Bureau to release the computer "source code" for a controversial
surveillance system called Carnivore, as well as information related to
Omnivore and EtherPeek, two other surveillance systems used in the past by
the FBI. ACLU also requested that the FBI turn over "letters,
correspondence, tape recordings, notes, data, memoranda, e-mail" and other
information connected with Carnivore. The FBI is attempting to install
Carnivore on the networks of ISPs as part of specific criminal
investigations of online users, but ISPs are resisting it, citing intrusion
of privacy among its customers. The request of information by ACLU reflects
the growing concern among privacy groups and Internet companies about the
privacy implications of the surveillance system dubbed Carnivore, a hardware
device that contains a specialized program for tracking e-mail and other
forms of online communication. The Electronic Privacy Information Center, a
Washington advocacy group, last week also filed a sweeping Freedom of
Information request for "all records" relating to Carnivore, though it
didn't explicitly request the system's source code.
[SOURCE: Wall Street Journal (b7), AUTHOR: NICK WINGFIELD]
(http://interactive.wsj.com/articles/SB96372677838623842.htm)

JDS WHO? FAST GROWTH, FARFLUNG FOLD AND WORRIES
Issue: Mergers
A look at the quick rise of JDS Uniphase which now has a market value of
$100 billion. The company makes fiber optic equipment and demand is sizzling
-- companies like Nortel and Lucent need these components to build Internet
infrastructure. But as the company acquires suppliers to fit holes in JDS
Uniphase's catalog of fittings and fixtures, there may not be enough time to
integrate new employees into the bigger company. "If you've gotten used to a
certain size of deal, you have a process in place," said Mark Sirower, a
merger adviser at the Boston Consulting Group. "When you go to
multibillion-dollar deals, it's a much bigger management challenge." The
quick growth through acquisition has also concerned the Department of
Justice which has required concessions on early deals.
[SOURCE: New York Times (C1), AUTHOR: Laura Holson]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/17jds.html)

PUBLIC LIVES: CYBERSENATOR DEFENDS THE NET, DESPITE SOME SOUR NOTES
Issue: Policymakers
A profile of Vermont Senator Patrick Leahy, know to collegues as the
cybersenator. A staunch First Amendment defender -- "Everybody is in favor
of the First Amendment, but we'd have a hell of a time ratifying it today"
-- the senator's first destination each morning is his computer, not his
coffee machine. He's currently considering whether Congress needed to
intervene to control Napster, Gnutella, mp3.com and other Internet sites
that allow music to be shared freely among millions of fans, without
copyright payments to artists and recording companies. Sen Leahy fought
against the Communications Decency Act and suggests that the responsibility
for policing the Internet has to rest largely with parents, who can buy
software that restricts access to Internet sites that feature pornography or
that promote racism and other forms of intolerance. "Maybe parents need to
spend some time with their kids on the computer, figuring out what they're
looking at."
[SOURCE: New York Times (A12), AUTHOR: Philip Shenon]
(http://www.nytimes.com/library/politics/071700lives-leahy.html)

WEB PIRACY IS HITTING HOLLYWOOD SOONER THAN THE STUDIOS THOUGHT
Issue: Intellectual Property
Hollywood's nightmare has arrived. Two technologies, - one hacked from
Microsoft - are enabling traditional read-writeable CD's to store high
quality video and audio that rivals DVD quality. And if that isn't bad
enough the video and audio can be stored in 10% to 20% of the space that
had been required just six months ago. This enables PC users with high-speed
DSL or cable-modem connections to download a full-length movie such as "The
Matrix" in an hour or two from a spreading network of illicit Internet
sites. In many ways this new technology, DivX - [no, not the old DivX
antipiracy technology. This version is intentionally mocking that DivX] - is
to the movie industry what Napster is to the recording industry. To date,
the large size of digital video files combined with slow home dial-up
Internet service has made video piracy a far-off proposition. But the
rapidly shrinking size of compressed video files, faster home connections
and an expanding network of illicit Web sites offering pirated DivX movies
is turning digital video piracy into an immediate concern for the movie
industry.
[SOURCE: Wall Street Journal (), AUTHOR: LEE GOMES]
(http://interactive.wsj.com/articles/SB963785272872501396.htm)

TWO NEW WEB SITES COVER POLITICAL RACES
Issue: Political Discourse
Two commercial Web sites, SpeakOut.com and Voter .com, are covering the
elections and political conventions while maintaining partnerships under
contract with the political parties. SpeakOut.com is providing technical
tools at no charge to both parties to create systems to manage the online
presentation of their party platforms. In exchange, the parties promote the
company's Web site, through linking and other means. Voter.com is charging
campaigns to post information in its candidate sections as well as
maintaining contracts with the major political parties in which party
representatives "advise Voter.com on ways to maintain 'balanced
partisanship' in the way the Voter.com Web site presents candidates, issues,
and procedures." The parties, under the contract, also agree to promote the
site. "Even as an information site," he said, "the content should be taken
with a large grain of salt if the site is beholden to the politicians and
the parties rather than to the citizens," said Bob Steele, director of the
ethics program at the Poynter Institute for Media Studies "It sounds like in
both of these sites that there are connective tissues between the
information content and the groups and individuals who are the subjects of
reporting that appear to be very problematic."
[SOURCE: New York Times (C12), AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/17poli.html)

KIDS & MEDIA

AETHER, SYLVAN TO DEVELOP WIRELESS DEVICES FOR STUDENTS
Issue: EdTech
Aether Systems and Sylvan Learning Systems have announced plans to create a
new company, MindSurf, that will develop communication tools for teachers,
students and parents. MindSurf will develop and license the technology for
hand-held wireless units that students could use to communicate with each
other and with teachers. "It will help organize their schedule, their work
flow, and have instant messaging," said Douglas L. Becker, chairman of
Sylvan, one of the country's largest for-profit education companies. Parents
could use the communication network to check children's attendance and
grades, and teachers could transmit assignments and other documents to
students and parents. The devises, which may resemble a Palm Pilot or
graphics calculator, and would cost $150 to $200 each.
[SOURCE: Washington Post (F05), AUTHOR: Neil Irwin]
(http://www.washingtonpost.com/wp-dyn/articles/A54627-2000Jul16.html)

MORE TEENS GET CELLPHONES SO THEY CAN PHONE HOME
Issue: Wireless
More than 25% of 13- to 18-year-olds in the USA regularly use wireless
phones, compared with 33% of the overall population, according to the Yankee
Group, an industry analyst firm. The percentage of teen users is expected to
hit 30% by 2001, even though most wireless companies won't let anyone under
age 18 sign a service contract. The Yankee Group estimates 72% of teen
wireless phone users' bills are paid by parents. Although parents usually
buy their children phones for safety reasons, many teens use them to talk to
their friends, often paying for the extra minutes themselves.
[SOURCE: USAToday (B1), AUTHOR: Michelle Kessler]
(http://www.usatoday.com/usatonline/20000717/2461763s.htm)

TELEVISION

TV ADVERTISING DRIVES FIGHT OVER AUDIENCE SIZE
Issue: Advertising
"As more and more Hispanics have come to the United States it has become
more complicated," said Harry R. Stecker, the Nielsen Media Research
executive who manages the ratings system for local television stations. "We
might have the right number of households that are Hispanic by origin in our
sample, but we do not have the right number of people who primarily speak
Spanish." Nielsen is attempting to correct its numbers -- now estimating
that Spanish speakers make up 8% of the television viewers in the New York
market. But English-language stations are not too happy with the number;
they fear thy could lose as much as $50 million in advertising each year.
Nielsen officials admit undercounting Spanish speakers in almost every major
market with a large Hispanic population. Naturally, Univision, the nation's
largest Spanish-language network, wanted action. "Ratings are the real
problem, because they are the real currency of the broadcast industry," said
Michael Wortsman, the president of Univision's national station group.
"Nielsen is discounting our currency because it is using an inaccurate
system." Hispanics are the fastest growing segment of the American
population and are close to overtaking blacks as the nation's largest
minority. There are more than 32 million Hispanics in the United States,
compared with 23 million 10 years ago.
[SOURCE: New York Times (A1), AUTHOR: Jayson Blair]
(http://www.nytimes.com/library/national/regional/071700ny-univision.html)

YOUR TV'S LITTLE BLACK BOX IS GROWING UP
Issue: Television
Today, about half of U.S. homes have at least one set-top box, according to
Forrester research. Those black boxes are undergoing huge changes. In 1996,
the Congress pass a law requiring the industry to create a standard that
lets consumers buy their boxes at retail, which means that the devises will
be interoperable, allowing subscribers to use them with all cable systems.
The advent of broadband Internet services has lured some of the biggest
media players, including Microsoft, AOL and Sony, to get involved in mix.
Several companies are developing set-top boxes that function as personal
video recorders (PVRs). About 11% of U.S. households expect to purchase a
PVR within the next year, according to a recent random survey of 1,000 homes
conducted by the Consumer Electronics Association. Some experts envision
that consumers will eventually be buying a box that handles all forms of TV,
plus phone and Net services -- with an upgradeable hard drive.
[SOURCE: USAToday (3D), AUTHOR: Mike Snider]
(http://www.usatoday.com/usatonline/20000717/2461686s.htm)

RADIO

NEW ECONOMY: TWO DIFFERENT FRONTS OF GROWTH IN SATELLITE RADIO INDUSTRY
Issue: Radio
"The fundamental difference between one person and another, rich or poor, is
access to information," said Noah Samara, who was born in Ethiopia, raised
in Tanzania and educated at the University of California at Berkeley. Last
year, Mr Samara's company, WorldSpace, initiated satellite
radio-broadcasting service in a region stretching from Cairo to Cape Town,
providing Africa with 25 audio channels of news, music, entertainment and
educational programming. "It is kind of funny that our basic approach of
profiting from providing that access is ahead of what is happening in the
developed world," said Samara. Satellite radio is expected to grow in four
years from virtually nothing to a $2.4 billion industry. In the US,
subscribers will pay ~$10/month for 100 audio channels starting around this
time next year. Two large satellite radio companies could further
concentrate power in the radio industry, critics say. "Radio will become
more of a wasteland because satellite radio won't offer much space for
localism," said Robert McChesney, a mass media professor at the University
of Illinois in Urbana-Champaign. "Remember the mom-and-pop radio stations?
They will all be gone."
[SOURCE: New York Times (C4), AUTHOR: Simon Romero]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/17neco.html)

OWNERSHIP

AOL-TIME WARNER MERGER TRIGGERS DISNEY OBJECTIONS
Issue: Mergers
Reviving last spring's feud between Walt Disney and Time Warner, Disney last
week told the FCC that AOL's proposed acquisition of Time Warner should be
allowed to proceed only if ownership of the merged company's content is
separated from ownership of Time Warner's cable systems. Disney's proposal
would essentially require Time Warner to spin off its extensive group of
cable systems before being acquired by AOL. Time Warner's senior vice
president for global public policy, Timothy Boggs, called Disney's proposal
"absurd" and maintained that "there is absolutely no basis for any condition
of this sort on this merger." But Disney Executive Vice President Preston
Padden maintains that the proposed mega-merger is based on a "pattern of
abuse" showed by Time Warner in favoring its programming services on its
cable systems. He said "our fear" is that "AOL-Time Warner cable is going to
be a virtual monopoly on the conduit to the home for interactive
television." If Disney's proposed condition gets the ear of the FCC, it
could doom the AOL deal, although there is no indication regulators are
giving it serious consideration.
[SOURCE: Wall Street Journal (B8), AUTHOR: MARTIN PEERS]
(http://interactive.wsj.com/articles/SB963789667790824133.htm)

MINORITY MEDIA OWNERSHIP ROUNDTABLE
Issue: Ownership
From Media Advisory: Gregory L. Rohde, assistant secretary of commerce for
communications and information and administration of the National
Telecommunications and Information Administration (NTIA), will host a
roundtable on Tuesday, July 18 on minority media ownership and how to
preserve diversity in the broadcast industry. The roundtable, "Media
Diversity: Minority Owners Conquering New Frontiers", will also consider the
impact of the landmark 1996 Telecommunications Act on minority media
ownership and discuss whether there is a continued need for policies that
help facilitate diverse media ownership. Participants will include broadcast
media owners, financiers, policymakers and members of the academic community.
Tuesday, July 18, 2000, 8:30 a.m. - 5 p.m.
Ronald Reagan Building and International Trade Center (New Location)
Polaris Suite, Concourse Level
1300 Pennsylvania Avenue, N.W.
Washington, D.C. 20004
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/2000/mrma71400.htm)

INFOTECH

MICROSOFT SEES SOFTWARE 'AGENT' AS WAY TO AVOID DISTRACTIONS
Issue: InfoTech
When is a new item of information worth distracting you from what you are
doing? [When its filtered by us, of course] Microsoft is working on software
that draw inferences from a user's behavior and could act as a combination
secretary and traffic cop to hold back the torrents of electronic and voice
mail, appointment requests and Internet information that increasingly
threaten to overwhelm today's office workers. But the system would not be
confined to the desktop computer. It would be a software cloak enveloping
the users wherever they might be, able to alert them via cell phone,
hand-held computer, pager or other digital means -- whenever and wherever
the software deemed something worthy of their attention. Read more at the
URL below. [Wow. A Microsoft story that's not about a merger or antitrust
violations...when's the last time that happened?]
[SOURCE: New York Times (C1), AUTHOR: John Markoff]
(http://www.nytimes.com/library/tech/00/07/biztech/articles/17lab.html)

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