August 2000

PUBLISHING
A Magazine at the Crossroads of Entertainment and Technology (NYT)

INTERNET

A Short Life For Ads at Top Of Web Pages (NYT)
Loudoun's AOL Detective Finds Clues in E-Mail (WP)
Internet Users Find Relief With Lifetime Addresses (WP)
Napster Draws Support From Online Groups (USA)

WIRELESS
FCC Delays Wireless-Spectrum Auction To Allow Larger Firms
to Prepare Bids (WSJ)
New Economy: Wireless Auction Uncovers Fissures in European
Telecommunications (NYT)

BROADBAND
Comcast Makes Its Play (WP)

MERGERS
VoiceStream Seeks to Buy Wireless Player (NYT)

INTELLECTUAL PROPERTY
Patent Application Could Evolve Into Trouble for E-Commerce (WSJ)
Code Name: Mainstream (NYT)

INTERNATIONAL
China Seizure Halts Delivery Of U.S. Book (NYT)
In China, Offering Data Services Opens
Competition With Telecom Monopoly (WSJ)

PUBLISHING

A MAGAZINE AT THE CROSSROADS OF ENTERTAINMENT AND TECHNOLOGY
Issue: Publishing
Inside.com and The Industry Standard have announced they will collaborate on
a new publication, Inside: The Business of Entertainment, Media and
Technology. The magazine, a debut is planned by year's end, will focus on
the impact of digital technology on the media and entertainment industries.
Michael Hirschorn, the editor in chief of Inside.com, said last week that
the Internet economy and digital technology were about to undergo the
long-predicted melding and transformation that would make the magazine
necessary reading across several industries. "Don't think I'm a geek, but
for example I consider Napster to be an epochal event," Mr. Hirschorn said,
referring to the service that lets people swap digital music files online
with little regard to copyrights. "It is one of the things that will change
the Internet profoundly, forever. You have to accept the idea that digital
technology is going to transform each of the industries we cover -- film,
television, music, book publishing, magazines and newspapers, and that is
why this magazine is right, right now." But Kuczynski raises some questions:
1) Why would Inside.com, which initially introduced a mediacentric Web site
with high hopes for its solo success, now introduce a print magazine, which
is costly to produce and distribute? 2) What does The Standard, which is a
unit of the International Data Group and is already busy with the ad-rich
Industry Standard and the introduction of a European edition, get from the
deal? 3) Perhaps most significantly, is the crunched magazine field ready
for a weekly title about the way that digital technology is affecting the
entertainment industry?
[SOURCE: New York Times (C1), AUTHOR: Alex Kuczynski]
(http://www.nytimes.com/library/tech/00/08/biztech/articles/28mag.html)
(requires registration)

INTERNET

A SHORT LIFE FOR ADS AT TOP OF WEB PAGES
Issue: Advertising
A study to be released today finds that a majority of online advertisements
had short life spans, running three weeks or less. 23.7 percent of all
online advertisements run one week, 16 percent run two weeks, and 11.9
percent run three weeks, the study found. Moreover, the advertiser reach a
very small office, with a huge majority getting less than a 0.01 percent
share among all online advertisements running at a particular time.
AdRelevance, a unit of the Internet measuring service Media Metrix, analyzed
standard ad banners on the top 500 Web sites between July 1999 and June
2000. Other findings: Online ads were used for short-term direct marketing
rather than the brand awareness; length of online campaigns run by various
industries; financial services and travel companies tended to run longer
campaigns; the average online ad campaign in the second quarter of 2000
registered 7,265,000 impressions, a measure of the number of times an ad is
viewed.
[SOURCE: New York Times (C11), AUTHOR: Susan Stellin]
(http://www.nytimes.com/library/tech/00/08/biztech/articles/28surv.html)
(requires registration)

LOUDON'S AOL DETECTIVE FINDS CLUES IN E-MAIL
Issue: Internet
Ron Horak, a detective in Loudoun County spends his entire day reading other
people's email -- sort of. Horak is Loudoun's AOL detective. It is his
full-time job to handle the warrants needed to peer into the online
communications of AOL users. From his quiet Leesburg office, he has one of
the most far-reaching views into the seedy side of cyberspace. As the
gatekeeper for police seeking clues in the online missives of AOL's 23
million subscribers, Horak has worked with police from all 50 states. When
AOL moved to Loudoun in 1996, Loudoun sheriff's official knew that they
would be required to handle requests for AOL account information. But they
never thought it would be so many. In 1998, they handled 152 Internet
searches. Last year, there were 299 AOL searches. This year, there already
are 245. And there's no reason for them to believe the requests will level
off anytime soon. Mark Marshall, a detective with the Worthington, Ohio,
police department, said Horak helped him put a child predator behind bars.
"He got us the information. He said, 'If you need me call.' You can't ask
for better than that." Horak rejects the requests that don't reflect
"probable cause." Said Horak: "If they just want a 'look-see,' I reject it
outright. Big Brother does not do that. If you have broken the law and used
AOL to do it, you have reason to worry." AOL spokesman Rich D'Amato said the
company, to protect its subscribers, requires a legal order by a judge or
magistrate. "We work with law enforcement to get them the information as
quickly as possible," he said, adding that AOL also has one person devoted
to processing such requests.
[SOURCE: Washington Post (A1), AUTHOR: Maria Glod]
(http://washingtonpost.com/wp-dyn/articles/A34143-2000Aug27.html)

INTERNET USERS FIND RELIEF WITH LIFETIME ADDRESSES
Issue:
Unlike a telephone number that is retained when a customer switches
carriers, e-mail addresses do change when you change carriers... uh,
Internet Service Providers. And unlike the Postal Service that will at least
forward your mail for six months, most ISPs again will not forward mail. The
hassles associated with switching are what economists call "switching
costs." High switching costs lock customers into long-time service relations
with businesses. But even as they guarantee a single company a customer
base, the flip side of high switching costs are they discourage competition.
After all if you can't take "anyone( at )benton.org" to another ISP, how can an
ISP effectively compete for your business? The solution: lifetime email
addresses. First offered by elite business schools such as Harvard, MIT and
Wharton in 1997, they are now popping up on college campuses across the
country. Internet start-ups such as Pobox.com and Mail.com are also trying
to tap this market with offers ranging from free forwarding to charging $40
per year. YAHOO! OFFERS free e-mail and forwarding. The U.S. Postal Service
also is planning to offer free lifetime e-mail addresses with forwarding
capabilities.
[SOURCE: Wall Street Journal (B1), AUTHOR: Julia Angwin
(http://interactive.wsj.com/articles/SB967413381408330025.htm)
(Requires subscription)

NAPSTER DRAWS SUPPORT FROM ONLINE GROUPS
Issue: Internet
A number of consumer and industry organizations are supporting Napster in
its lawsuit against the Recording Industry Association of America. However,
these organizations are not attempting to defend the right to share
copyrighted music files; they are attempting to defend the future of
Napster's technology. "Just because something is used for a bad purpose
doesn't mean the product is wrong," says Gary Shapiro, President of the
Consumer Electronics Association, which filed a friend of the court brief
along with several other groups, including Digital Future Coalition and the
NetCoalition -- which includes members such as AOL, Amazon.com and Yahoo!.
Napster was temporarily shut down by a judge who sided with RIAA. An Appeals
court is expected make a ruling on this matter next month.
[USA Today (3D), Author: Mike Snider]

WIRELESS

FCC DELAYS WIRELESS-SPECTRUM AUCTION TO ALLOW LARGER FIRMS TO PREPARE BIDS
Issue: Wireless
The Federal Communications Commission said Friday that it will allow large
wireless companies to bid on some of the spectrum that was to go on the
auction block Nov. 29 and had been reserved for smaller firms. This is part
of a larger FCC effort to alleviate a spectrum shortage caused by the rapid
development of new wireless technologies and services. According to a
spokesman for Verizon Wireless, the rules change was good news because some
smaller companies aren't so small anymore and shouldn't get privileges in
the auction. "There are household names competing that are getting an unfair
advantage." The Personal Communications Industry Association, which had
urged keeping the larger companies out of the auction, was pleased smaller
firms didn't lose their bidding privileges completely.
[SOURCE: Wall Street Journal (B8), AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB967415596314090083.htm)
(Requires subscription)

NEW ECONOMY: WIRELESS AUCTION UNCOVERS FISSURES IN EUROPEAN
TELECOMMUNICATIONS
Issue: International/Auctions/Wireless
Investors and analysts are getting nervous that European wireless carriers
paid too much for third generation spectrum licenses in Germany; six
companies will pay a total of $46 billion for one license each -- and still
have to pay another $4 billion to actually build their networks. But even
though Germany and Great Britain have auctioned licenses, other countries do
not. Spain and Finland simply awarded licenses to the companies deemed most
worthy. France is charging a flat $4 billion fee. Some executives complain
that companies from countries with very low license costs can save billions
at home and then plow the money into auctions elsewhere. "We don't have a
level playing field in Europe," said Hans Ehnert, a spokesman for Deutsche
Telekom. "We had to compete in the bidding against companies like Telef

DIGITAL DIVIDE
In U.S., Digital Haves Outnumber Have-Nots (WP)
Agencies Act to Ease Use of Internet by Disabled (WP)
Giving The Disabled Increased E-Access(WP)
Gateway Aims To Be Computer Trainer (NYT)

TELEVISION
Don't People Want to Control Their TV's? (NYT)

PRIVACY/SECURITY
White House Won't Block N.T.T.-Verio Deal (NYT)
Global Phone Deals Face Scrutiny From a New Source: The FBI (WSJ)
Colleges Compete To Test Carnivore (WP)

INTERNET
Time to Face the (Digital) Music (WP)
AOL Unmoved in Software Dispute (WP)

JOBS
Strike Ends as Verizon Reaches Agreement With Union Holdout (WSJ)

DIGITAL DIVIDE

IN U.S., DIGITAL HAVES OUTNUMBER HAVE-NOTS
Issue: Digital Divide
More than half of the U.S. population can now access the World Wide Web from
home. According to new data from Nielson Net Ratings, as of July, 52 percent
of the population has home Internet access. This data reflects a 35 percent
increase during the past year, bringing the total number to 106.3 million
people that now have home Internet access. Sean Kaldor, NetRating Inc's
vice president of e-commerce, cited falling computer prices and competitive
rates for Internet access as the forces behind the increase. The data also
show that Americans are spending more time online and looking at fewer Web
sites than they did a year ago. The average user spent 9 hours and 41
minutes online in July 2000 -- a 26 percent increase --and the number of
sites visited declined to 10 from 12 in the same period.
[SOURCE: Washington Post (E-8), AUTHOR: Terence Chea]
(http://washingtonpost.com/wp-dyn/articles/A14525-2000Aug23.html)

AGENCIES ACT TO EASE USE OF INTERNET BY DISABLED
Issue: Digital Divide/Accessibility
In the next few months, the federal government is expected to make the Web
less cumbersome for those with disabilities. New accessibility standards for
federal Web sites, software and technology products will go into effect by
May of next year. All new Web sites and any software requiring a change or
update must be accessible to those with sight, hearing or mobility
impairments. "Most IT managers know they've go to do this and they're trying
to," said Diana Hynek, who coordinates the effort at the Commerce
Department. Hynek said Commerce will focus on its Web site first because it
is the "public face" of the department. The standards are expected to have a
ripple effect through private businesses (see summary below) as the
government is the largest purchaser of information technology in the
country. To meet the new standards, government Web sites must soon offer
alternatives for people who cannot see multi-tiered charts and provide text
transcripts for audio or video streams. Cost estimates for the changes range
from $85 to $691 million.
[SOURCE: Washington Post (A23), AUTHOR: Carrie Johnson]
(http://washingtonpost.com/wp-dyn/articles/A6542-2000Aug22.html)

See Also:
GIVING THE DISABLED INCREASED E-ACCESS
Issue: Digital Divide/Accessibility
Companies are stepping up to the plate to meet the demand for what they see
as a new Internet market. Motivated by the federal process of building
accessible Web sites and software, a number of companies are ready for the
consulting and design demands that are sure to stem from the government's
new rules. The potential return for early movers in accessibility design are
enormous. Optavia Corp., a Madison, Wis., company that provides advice on
how to make Web sites more accessible to general audiences expects
accessibility design to go from 0% of their business to 25% this year. Shawn
Lawton Henry, director of research and development for Optavia, attributes
the uptake to increased awareness of the new federal requirements and the
recent 10th anniversary of the Americans With Disabilities Act (ADA).
"People are beginning to realize that this is going to be a competitive
advantage," Henry said. "We've talked with people who have already lost
contracts because their technology wasn't accessible." Crafting a
disabled-friendly Web site doesn't take much additional time or expense,
said Denise Koschmann, a usability specialist at QRC in Bethesda. Mostly,
she said, it just means remembering that not everyone can see the computer
screen, hear the voices coming from the speakers or reach the keyboard with
their fingers. The government has not ordered companies to make their
technology accessible to the disabled, but the Justice Department, in a 1996
opinion, said the ADA applied to the Internet.
[SOURCE: Washington Post (E2), AUTHOR: Carrie Johnson]
(http://www.washingtonpost.com/wp-dyn/articles/A13415-2000Aug23.html)

GATEWAY AIMS TO BE COMPUTER TRAINER
Issue: Digital Divide
Admitting publicly that using a computer can be pretty darned complicated,
Gateway Inc. is launching an advertising campaign to drive home that point,
and has begun offering free clinics for PC users. Starting this month,
Gateway's own stores and its kiosks in OfficeMax stores began providing free
"clinics" on PC and Internet basics as well as more advanced topics such as
digital photography and music. The company also has 5,000 classroom seats in
its stores for more thorough classes on those subjects, as well as software
applications like Microsoft Office. The classes cost between $49 and $175.
But critics say Gateway's initiative, though a "very attractive proposition
for newbies," doesn't solve the underlying problems of the information
revolution. "The better way would be to make PCs easier to use," says PC
industry analyst Tim Bajarin.
[SOURCE: New York Times, AUTHOR: Associated Press
(http://www.nytimes.com/library/tech/00/08/biztech/articles/24gateway.html)
(Requires Registration)

TELEVISION

DON'T PEOPLE WANT TO CONTROL THEIR TV'S?
Issue: Television
Digital Video Recorders (DVR)- available from two competing services, TiVo
and ReplayTV - allow TV viewers to search for programs, automatically record
them on a hard drive, and put live programs on "pause" and skip commercials
at the press of a button. While some analysts have suggested that DVRs could
revolutionalize commercial television by allowing people to create
personalized networks, to watch whenever they want and to avoid commercials,
most consumers are not racing to get their hands on the devises. Price is
likely an important factor: the units cost from $99, with a minimum monthly
fee of $9.95. An even larger barrier may be the lack of consumer
understanding of the new gadgets. "Until people get their hands on it,"
said Rebecca Baer, a spokeswoman for TiVo, "they don't understand why they
need this."
[SOURCE: New York Times (E1), AUTHOR: Roy Furchgott]
(http://www.nytimes.com/library/tech/00/08/circuits/articles/24tivo.html)
(requires registration)

PRIVACY/SECURITY

WHITE HOUSE WON'T BLOCK N.T.T.-VERIO DEAL
Issue: Security
When a major Japanese corporation, Nippon Telegraph and Telephone, decided
to purchase an American Internet service provider, Verio Inc., it raised
national security concerns at the FBI. In telecommunications deals, the
F.B.I. has asked for assurances that only United States facilities be used
to handle domestic traffic and that companies employ United States citizens
to handle wiretapping activities. President Clinton, however, has decided
against blocking the pending acquisition. "As a result of the investigation
and negotiations with N.T.T. Communications and Verio, any national
security issues that may have been presented by this transaction have been
resolved," the White House said in a statement.
[SOURCE: New York Times, AUTHOR: The Associated Press]
(http://www.nytimes.com/library/tech/00/08/biztech/articles/24verio-ntt.html
)
(requires registration)
See Also
CLINTON LETS JAPAN FIRM BUY VERIO
[SOURCE: Washington Post (E3), AUTHOR: Bloomberg News]
(Not online as far as I can tell)

GLOBAL PHONE DEALS FACE SCRUTINY FROM A NEW SOURCE: THE FBI
Issue: Security
While foreign telecommunications companies doing deals in the U.S. may
expect inquiry from federal antitrust enforcers and telecom regulators, they
might be surprised by the scrutiny they've been getting from the FBI. When
TMI Communications of Canada wanted to sell satellite-phone service to U.S.
subscribers, it sought permission from the Federal Communications
Commission. The FBI voiced objections, fearing it would have no legal or
practical way to wiretap a phone service operated entirely outside the U.S,
and delayed the approval of the deal by a year. Since a 1996 law deregulated
the U.S. telecom business, Special Agent Alan McDonald and the FBI have
elbowed their way into nearly every big deal involving foreign and U.S.
telecom companies. Their mission: preserve the FBI's decades-old snooping
capacity and safeguard the country from foreign spies. After months of
negotiations, TMI agreed last fall to install a call-switching station in
New England through which it would route all its U.S. traffic. The whole
process was "like pulling hen's teeth," and cost nearly $3 million, says Mr.
Boisvert, TMI's chief executive officer.
[SOURCE: Wall Street Journal (A1), AUTHOR: Neil King Jr. And David S. Cloud]
(http://interactive.wsj.com/articles/SB967070342424493183.htm)
(Requires Subscription)

COLLEGES COMPETE TO TEST CARNIVORE
Issue: Privacy
Attorney General Janet Reno has extended the deadline to September 15th, for
selecting a university to analyze the FBI's Carnivore e-mail surveillance
system to give the schools that have volunteered an equal chance. At her
weekly news conference Reno said that at 5p.m. today, the department would
post on its Website "a statement of work and specific expectations for the
review." She launched the review after members of Congress and civil
liberties groups objected to the computerized system. Carnivore's software
scans and captures "packets," the pieces of data that make up Internet
traffic, as they travel through an Internet service provider's network. The
FBI installs a Carnivore unit in a service provider's system and configures
it to capture only e-mail to or from the person under investigation. FBI
officials say court orders limit which e-mail they can see. Privacy
advocates say only the FBI knows what Carnivore can do, and Internet
providers are not allowed access to the system. Civil liberties groups
argued that Reno should just make Carnivore's computer source code public
for the widest possible analysis of its capabilities. Justice officials said
many schools expressed interest in analyzing the system, and some offered to
do it for free. Reno said she would pick a school by Sept. 15. "We are
committed to having an independent technical review complete by Dec. 1," she
said.
[SOURCE: Washington Post (E7), AUTHOR: Carrie Johnson]
(http://www.washingtonpost.com/wp-dyn/articles/A14489-2000Aug23.html)

INTERNET

AOL UNMOVED IN SOFTWARE DISPUTE
Issue: Internet
Instant-messaging, sending text messages in real-time over the Internet, has
become a key source of friction in AOL's attempt to win regulatory approval
for its proposed takeover of Time Warner. AOL rivals and more than a dozen
legislators have framed the company as a "bully" and "monopolist" for its
refusal to open its instant-messaging network of 84 million users. To date,
AOL has prevented rival instant-messaging systems from having access to the
network of users of its own AOL Instant Messenger (AIM) product. Now federal
regulators reviewing the $183 billion merger have come to share the same
worries. However, the regulators have decided that the matter is beyond
their powers to remedy through the conditions of the merger. Instead they
are likely to rely on informal pressure. At the heart of the matter is the
potential explosion of commercial uses of instant-messaging - and who will
benefit from the money to be made through ads and e-commerce applications.
Forrester Research, a market research firm, estimates that roughly half of
the Fortune 1000 companies will use instant messaging by the end of 2001.
Time Warner's Gerald Levin, asked at a Wall Street conference to name the
most valuable asset to the combined company, answered: "Instant messaging."
Critics of AOL have compared the company's position to that of Sprint
customers not being able to talk to AT&T customers. Analysts see this
instant-messaging battle as a litmus test. Bill Whyman, president of the
research firm Precursor Group, said, "It hits at the heart of what the
Internet is - nondiscriminatory interconnection - and is an important signal
about how open or closed the government will let AOL Time Warner be in the
future."
[SOURCE: Washington Post (A1), AUTHOR: Ariana Eunjung Cha]
(http://www.washingtonpost.com/wp-dyn/articles/A12754-2000Aug23.html)

TIME TO FACE THE (DIGITAL) MUSIC
Issue: Internet
[OP-ED] According to Rob Glaser, chairman and CEO of RealNetworks, "The
future of electronic music distribution will ultimately depend less on what
the courts decide than on what media companies, music fans, artists and
technology leaders can collectively agree to support." Citing the growth of
Napstar from zero to 20 million in a single year, Glaser argues that the
demand for user-friendly access to digital music has created new media
distribution models. And this sort of development is long overdue,
especially since the majority of record companies haven't changed their
fundamental business models for nearly 100 years. However, the message
Napster sent to the market wasn't that entirely new. Because over the past
five years, hundreds of millions of people have downloaded software by
RealNetworks and others to enjoy audio and video over the Web. Glaser
contends that "The primary difference between our approach and Napster's is
that we built a market on the principle that artists, producers,
broadcasters and consumers all have rights, and that a legitimate
marketplace must respect and support those rights in a straightforward way.
That approach has to be at the heart of any workable Napster resolution."
[SOURCE: Washington Post (A25), AUTHOR: Rob Glaser]
(http://www.washingtonpost.com/wp-dyn/articles/A14501-2000Aug23.html)

JOBS

STRIKE ENDS AS VERIZON REACHES AGREEMENT WITH UNION HOLDOUT
Issue: Jobs
Verizon and its 35,000 telephone workers in the Mid-Atlantic region reached
an agreement, ending an 18-day strike that had inconvenienced millions of
customers. Negotiators put the finishing touches on a three-year deal
providing a 12 percent increase in wages and 14 percent increase in pension
benefits over the life of the contract, as well as a one-time grant of 100
stock options to each union employee by the end of 2000. Verizon also had
reached a tentative agreement with 15,000 strikers from the International
Brotherhood of Electrical Workers on Sunday and 37,000 Communications
Workers of America (CWA) members from the Northeast, leaving just CWA-South,
as the lone holdout unit. The agreement also resolves an awkward situation
for the union, which arose between the workers that had returned to work and
those that remained on strike.
[SOURCE: Wall Street Journal (A3), AUTHOR: Yochi J. Dreazen]
(http://interactive.wsj.com/articles/SB967066663484352728.htm)
(Requires Subscription)

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JOBS
Many Verizon Workers Continue Walkout As Mid-Atlantic Unit Refuses
to Sign Pact (WSJ)
The Indian Telecom Training Initiative (FCC)

BROADBAND
AT&T Threatens To Sue San Jose Over Cable Modems (SJM)

INTERNET
For Sale: Web Address, Unused, Not Cheap (NYT)
CME Commends FTC's COPPA Compliance Training for Website Operators
(CME)

TELEVISION
Reminder: People for better TV Rally in Detroit Today (PBTV)

MERGER
Canadian Company Bids $3 Billion For Wireless Network (NYT)

JOBS

MANY VERIZON WORKERS CONTINUE WALKOUT AS MID-ATLANTIC UNIT REFUSES TO SIGN
PACT
Issue: Jobs
Verizon workers in the Northeast ended a two-week strike Sunday after their
union reached a tentative agreement on a three-year contract, but
Mid-Atlantic state employees continued to walk the picket lines. About
35,000 Verizon workers still refused to sign a contract offer, and continued
to haggle with the company over a number of issues, including the number of
hours employees must work, working conditions of Verizon's customer-service
representatives and sundry local issues. Union officials expressed mounting
frustration over the division's failure to sign a deal. "We're a little
confused," said Robert Campbell, president of Communications Workers of
America (CWA) local 2108 in Landover, Md. The impasse meant that while part
of the union was celebrating what CWA officials described as a "total
victory," another large chunk of the union was still locked in increasingly
tense talks with Verizon.
[SOURCE: Wall Street Journal (A2), AUTHOR: Deborah Solomon And Yochi J.
Dreazen]
(http://interactive.wsj.com/articles/SB966875958689725226.htm)
(requires subscription)
See Also:
VERIZON STRIKE LIKELY HELPED THE FIRM PROMOTE THE SWITCH TO ITS NEW NAME
[SOURCE: Wall Street Journal (A6), AUTHOR: Jennifer Rewick]
(http://interactive.wsj.com)
(requires subscription)
LABOR ACCORD HITS NEW-ECONOMY NOTES
[SOURCE: New York Times (C1), AUTHOR: Simon Romero]
(http://www.nytimes.com/library/financial/082200verizon-talks.html)
(requires registration)

THE INDIAN TELECOM TRAINING INITIATIVE
Issue: Digital Divide
From Press Release: The Federal Communications Commission (FCC) announces a
historic partnership with 29 co-sponsors and over 50 telecommunications
experts for the Indian Telecom Training Initiative (ITTI 2000). ITTI 2000 is
a four-day tribal leader telecommunications seminar that will be held
September 25-28, 2000 at the Radisson Hotel, St. Paul, Minnesota. The FCC in
cooperation with the National Exchange Carrier Association (NECA), is
hosting this historic training event to provide tribal leaders with the best
and most up-to-date information available to help increase
telecommunications services in native communities. For more information on
the seminar and on the availability of scholarships for tribal governments
please call (888) CALL FCC / (888) 225-5322; (717)338-2888; or email the FCC
at ITTI2000( at )fcc.gov. Additional information is available at the FCC Indian
Initiatives Web site at (www.fcc.gov/indians) FCC ITTI '2000 Contact: Nancy
Plon at (202) 418-2899; nplon( at )fcc.gov; TTY at (202) 418-8233
NECA Contact: Dustin Logan at (402) 592-2111 or dlogan( at )neca.org.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/2000/nrwl0027.html)

BROADBAND

AT&T THREATENS TO SUE SAN JOSE OVER CABLE MODEMS
Issue: Broadband
In a letter dated Aug. 18, Richard R. Patch, a lawyer representing AT&T,
threatened to sue the city of San Jose to let AT&T begin construction to add
capacity for cable modem service. The dispute involves a cable network
within San Jose that AT&T bought from Pacific Bell in late 1998 for $25
million. The network, which serves 55,000 subscribers and passes within
service range of about one-fourth of the city's homes, is more modern than
the rest of AT&T's cable system in San Jose, which it acquired when it
bought Tele-Communications Inc. last year. AT&T has proposed to invest more
than $50 million to make the old Pacific Bell network capable of high-speed
Internet access as soon as this fall, before undertaking a larger network
renovation that would eventually include the entire city. City officials
contend that AT&T doesn't hold a valid franchise for the Pacific Bell
system, and they won't let the company proceed with construction until it
signs a new franchise agreement covering all its San Jose operations. As
conditions for reaching a franchise agreement, AT&T said, San Jose wants the
company to increase the number of public access channels in the city to
seven from two, and to build a network connecting city buildings.
[Source: Mercury News, Author: Jennifer Files]
(http://www.mercurycenter.com/svtech/news/front/docs/att082200.htm)

INTERNET

FOR SALE: WEB ADDRESS, UNUSED, NOT CHEAP
Issue: Internet
Until recently, original domain name registration generally cost around $35
a year. But ever since Network Solutions, which had a monopoly on
registrations, lost its government contract, domain prices have been known
to range from less than $10 to more than a million. Now, 50 companies
compete to register both new and old addresses. And as "good' names become
increasingly difficult to come by, the price for catchy or easy to remember
domain names is soaring. Early this year, www.business.com/ sold for $7.5
million and www.loan.com/ for $3 million. A growing number of companies have
built businesses just by helping owners resell the names they no longer want
or need. "The whole market is shifting; it's now all about the secondary
market," said Jeff Tinsley, chief executive of GreatDomains.com, a Los
Angeles company that is one of the largest resellers of names. "All the best
names are bought up."
[SOURCE: New York Times (C6), AUTHOR: Sabra Chartrand]
(http://www.nytimes.com/library/tech/00/08/biztech/articles/22domain.html)
(requires registration)

CME COMMENDS FTC'S COPPA COMPLIANCE TRAINING FOR WEBSITE OPERATORS
Issue: Privacy
The Center for Media Education (CME) issued a release supporting the Federal
Trade Commission's (FTC) efforts to train Website operators on how to comply
with the Children's Online Privacy Protection Act (COPPA). The FTC held its
"COPPA Compliance Training for Website Operators" workshop today in
Washington, DC. "We worked long and hard to get COPPA passed," said CME
President Kathryn Montgomery, Ph.D. "We're glad to see the FTC taking a
proactive role in teaching companies how to follow the law. It's an ongoing
process." Although many Websites have complied with the FTC Rule
implementing COPPA, which went into effect April 21, 2000, others still have
not.
[SOURCE: Center For Media Education]
(http://www.cme.org/publications/press.html)

TELEVISION

REMINDER: PEOPLE FOR BETTER TV RALLY IN DETROIT TODAY
Issue: DTV
Senator Carl Levin (D-MI) will participate in a People for Better TV public
rally and press conference on Wednesday, August 23, from noon to 2PM at the
Southfield Performing Arts Center in Detroit. For more information, call
Richard Singleton at 313-962-0340.
[SOURCE: People for Better Television]
(http://www.bettertv.org/20000823dt.htm)

MERGER

CANADIAN COMPANY BIDS $3 BILLION FOR WIRELESS NETWORK
Issue: Merger
In a scramble to gain geographic reach in anticipation of a boom in demand
for Internet services delivered via wireless networks in Canada, the Telus
Corporation made an offer worth $3.1 billion for Clearnet Communications
Inc. of Toronto that would make it the largest telecommunications company in
western Canada. The takeover would greatly accelerate the expansion of Telus
and pose a competitive challenge to two other big Canadian
telecommunications providers, the Bell Mobility division of Bell Canada of
Montreal, which is the country's largest telecommunications organization,
and Rogers AT&T Canada. "Wireless and Internet applications are the two
fastest-growing areas in telecommunications," said Darren Entwistle,
president and chief executive of Telus. "Our objective is to become the
Canadian leader of this market." Although Telus had strengthened its hand
by moving quickly to gain a national wireless network, it might find itself
in tough competition with new marketers who are able to buy capacity at
inexpensive rates, warned Michael Cant, an analyst at Renaissance Strategies
in Waltham, Mass.
[SOURCE: New York Times (C4), AUTHOR: Timothy Pritchard]
(http://www.nytimes.com/library/tech/00/08/biztech/articles/22wireless.html)
(requires registration)

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

(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.oneworld.net)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)
To subscribe to other free Benton Foundation newsletters, visit:
(http://www.benton.org/Resources/home.html)

POLITICAL DISCOURSE
Not Many Eager To Check Out E-Political Coverage (USA)

TELEPHONY/WIRELESS
AT&T, British Telecom Chiefs Consider A Union, Hoping to Keep Up
With Rivals (WSJ)
German Airwaves Fetch High Bids (WP)
Japanese Cell-Phone Service Thrives With 'Microbilling' (WSJ)
U.S. Providers Bet More Americans Will Shop Via
Their Mobile Phones (WSJ)
E911 Implementation (FCC)

INTERNET
.us Domain Space (NTIA)

PRIVACY
EPIC Asks Court to Set Deadline for Release of
Carnivore Information (EPIC)
Judge Shelves Plan for Sale Of Online Customer Database (NYT)

INTELLECTUAL PROPERTY
Judge Halts Program to Crack DVD Film Codes (NYT)

JOBS
Verizon Unions Revise Plan As Talks Near Deadline (NYT)

POLITICAL DISCOURSE

NOT MANY EAGER TO CHECK OUT E-POLITICAL COVERAGE
Issue: Political Discourse
While both parties' national conventions have had strong presence on the Web,
not many people have been logging on for coverage. Traffic on the four most
popular Internet news sites was down 14 percent during the Republican
convention in Philadelphia from the week before. A survey by the Joan
Shorenstein Center on the Press, Politics and Public Policy at Harvard
University found only one in 30 adults spent more than a few seconds viewing
Internet political coverage during the GOP gathering. Democratic officials
said their convention Web site, Dems2000.com, received about 250,000 unique
visitors a day, more than double the traffic of a few weeks ago. But
according to Chris Hunter, an analyst with NetElection.org, a research
project at the Annenberg Public Policy Center of the University of
Pennsylvania, "The Democrats didn't deliver...Hype and gizmos are winning,
and citizens are losing." One expert, Steven Clift of Minnesota E-Democracy,
said Web users would log on if the subjects hit closer to home. "The Net is
global, but politics is local," he says.
[SOURCE: USAToday (9A), AUTHOR: Richard Wolf]
(http://www.usatoday.com/usatonline/20000818/2563894s.htm)

TELEPHONY/WIRELESS

AT&T, BRITISH TELECOM CHIEFS CONSIDER A UNION, HOPING TO KEEP UP WITH RIVALS
Issue:Merger
AT&T and British Telecommunications, two old-line telephone behemoths
struggling to keep pace with faster-moving rivals, have put out feelers
about the possibility of combining their businesses. The two companies have
discussed the idea of a combination during their regular meetings about
Concert, the global joint venture between AT&T and BT that provides phone
and data services to large corporate customers. Although the two companies
caution that no deal is imminent, and it is still unclear whether the
informal talks will lead to negotiations, the latest conversations are more
serious and have focused on specific issues relating to a combination of
their businesses. But a move to any transaction deal would face tremendous
regulatory hurdles. BT shareholders might balk at a potential merger with
AT&T because it would expose them to the highly competitive U.S. market, as
well as to AT&T's woes. But for both companies, a combination offers the
prospect of efficiencies of scale, new revenue streams and opportunities in
the global Internet market.
[SOURCE: Wall Street Journal (A3), AUTHOR: Anita Raghavan And Gautam Naik]
(http://interactive.wsj.com/articles/SB96655657320405686.htm)

GERMAN AIRWAVES FETCH HIGH BIDS
Issue: Spectrum
Yesterday, a closely watched airwave auction in Germany ended with six
companies bidding more than $46 billion for wireless licenses. The high
prices in the German spectrum sale, and a $36 billion auction in Britain in
April, have left many industry analysts wondering whether unsold airwaves in
U.S. are undervalued. The European companies plan to use the airwaves
auctioned this year for third-generation, or "3G," services that will allow
users to access the Internet from mobile devices. The Federal Communications
Commission plans to sell to wireless carriers spectrum that is currently
occupied by a handful of U.S. broadcasters, including Paxson. The agency has,
however, already delayed the auction of the airwaves twice as it struggles
to come up a with a plan that would satisfy broadcasters that want to be
paid for moving from the prime real estate. Based on the European airwave
sales, the airwaves used by TV stations between channels 59 and 69 could be
worth between $20 billion and $40 billion, analysts predict.
[SOURCE: Washington Post (E03), AUTHOR: Christopher Stern]
(http://washingtonpost.com/wp-dyn/articles/A46556-2000Aug17.html)
See Also:
$50 BILLION FOR GERMAN WIRELESS LICENSES
[SOURCE: New York Times (C4), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/library/financial/081800germany-wireless.html)

JAPANESE CELL-PHONE SERVICE THRIVES WITH 'MICROBILLING'
Issue: Wireless
The fastest-growing Internet service called "i-mode," run by Japan's NTT
DoCoMo allows subscribers to send and receive e-mail as well as access Web
sites that have been tweaked to fit on tiny screens of their cell phones.
Subscribers can tap into online news, browse through restaurant guides, buy
plane tickets on Japan Airlines, and trade stocks. At the end of the month,
any charges imposed by these or other i-mode-approved sites are bundled
together in one monthly phone bill -- a so-called microbilling system that
is simple for users and profitable for the companies involved. DoCoMo has
registered 10 million subscribers in 18 months, with up to 50,000 new users
a day. When DoCoMo set out to build i-mode, executives never imagined it
would be such a runaway success. The company had blown away
rivals in voice service but had zero experience with the Internet. The
i-mode team avoided what it considered vague, and to many Japanese customers
off-putting, technical terms such as "Internet" and "Web." DoCoMo is also
studying other possible payment schemes to complement its microbilling
system. Users will probably one day be able to "download" money into their
phones to buy things from vending machines or convenience stores. Further
down the road are electronic settlement systems that will make phones work
like credit or bank debit cards.
[SOURCE: Wall Street Journal (B1), AUTHOR: Robert A. Guth]
(http://interactive.wsj.com/articles/SB96655594017665802.htm)

U.S. PROVIDERS BET MORE AMERICANS WILL SHOP VIA THEIR MOBILE PHONES
Issue: Wireless/Ecommerce
With m-commerce in its infancy here in the U.S., cell-phone-toting Americans
are limited to buying things such as books and CDs, stocks and roses for Mom
from specialized sites. However, American consumers can expect more
m-commerce options soon. Sprint PCS, for example, is considering vending
machines capable of taking cell-phone orders. Yet, many Americans own
outdated analog phones, and security is far from perfect on wireless
networks. And since American wireless-service providers have adopted
different standards for transmitting information via phones, some companies
are simply delaying their move into mobile commerce until one method wins
out. The potential value of m-commerce in the U.S. is huge: The amount that
Americans spend shopping via mobile devices could soar to as much as $21
billion by 2004, up from almost nothing now, according to IDC. Right now,
the wireless carriers have a big say in where Americans do their mobile
shopping because they control what users see on their initial
wireless-Webpage. Companies like Amazon.com, Barnes&Noble.com and E*Trade
Group have deals to have direct links to their sites from those pages.
Industrious users could type in the Web addresses of other sites, but a cell
phone's tiny buttons can make that cumbersome. Thus, companies seeking to
hawk their wares to m-shoppers are busy cutting deals with wireless carriers
to get prime placement on their users' phone screens.
[SOURCE: Wall Street Journal (B1), AUTHOR: Andrea Petersen]
(http://interactive.wsj.com/articles/SB966557435941583567.htm)
See Also
OVERSEAS, PEOPLE USE MOBILE PHONES TO BANK, BUY WINE, AND PAY RENT
[SOURCE: Wall Street Journal (B1), AUTHOR: Gautam Naik & Almar Latour]
(http://interactive.wsj.com/articles/SB96655581264901058.htm)

E911 IMPLEMENTATION
Issue: Wireless
In this Public Notice, the Wireless Telecommunications Bureau (Bureau) seeks
comment on a request filed by the King County, Washington E-911 Program
Office for assistance in resolving a conflict related to the implementation
of wireless Phase I Enhanced 911 (E911) service in the State of Washington.1
The King County Request states that King County and several other counties
in Washington State have ordered Phase I service from wireless carriers
operating in the State and that the Public Safety Answering Points (PSAPs)
in these counties are capable of receiving and utilizing Phase I information
over their existing E911 networks. According to the request, some carriers
have agreed to implement Phase I service only if King County and the several
other requesting counties pay for some or all of certain network and data
base components associated with the delivery of the Phase I service. King
County requests that the Bureau clarify whether the funding of certain of
the network and data base components of Phase I service, and the interface
of these components to the existing E911 system, are the responsibility of
the wireless carriers or the PSAPs.
Parties interested in filing comments may do so on or before September 18,
2000 and reply comments are due on or before October 11, 2000. To file
formally, parties must submit an original and four copies to the office of
the Secretary, Federal Communications Commission, 445 12th Street, S.W.,
TW-A325, Washington, D.C. 20554. In addition, parties must submit one copy
to E. Wendy Austrie, Policy Division, Wireless Telecommunications Bureau,
Federal Communications Commission, Room 3-B101, 445 12th Street, S.W.,
Washington, D.C. 20554. Copies of the King County Request may be obtained
from the following docket: CC Docket No. 94-102. Comments and reply comments
will be available for public inspection during regular business hours in the
FCC Public Reference Room, Room CY-A257, 445 12th Street, S.W., Washington,
D.C. 20554.
For further information concerning this proceeding, contact E. Wendy
Austrie, Policy Division, Wireless Telecommunications Bureau at (202) 418-1310.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/Public_Notices/2000/da001875.html)

INTERNET

.US DOMAIN SPACE
Issue: Internet
The Commerce Department's National Telecommunications and Information
Administration (NTIA), in a notice to be published shortly in the Federal
Register, announced a Notice and a Request for public comment on a draft
statement of work that the department contemplates will be ultimately
incorporated into a request for proposals to manage .us on behalf of the
U.S. government. The .us domain is the "national" or "country code" top
level domain (ccTLD) assigned to the United States for domain name
registration and is currently managed as a locality-based hierarchy in which
second-level domain space is allocated to States and U.S. territories. See
Media Advisory at
(http://www.ntia.doc.gov/ntiahome/press/2000/dotusma81700.htm).
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/domainname/usrfc2/dotusrfc2.htm)

INTELLECTUAL PROPERTY

JUDGE HALTS PROGRAM TO CRACK DVD FILM CODES
Issue: Intellectual Property
Judge Lewis Kaplan has ruled that Eric Corley and his company, 2600
Enterprises, cannot distribute a computer program used to copy DVD films.
Like the Napster case, this ruling will contribute to the rules that govern
commerce and free speech in the digital world. "Each side is entitled to its
views," Judge Kaplan wrote. "In our society, however, clashes of competing
interests like this are resolved by Congress." Judge Kaplan found that the
Digital Millennium Copyright Act, passed by Congress in 1998 and which
prohibits the distribution of software designed to circumvent copyright
protections, did not violate Mr. Corley's First Amendment right to free
speech, and he prohibited Mr. Corley from posting the program in the future
or from establishing Internet links with other sites that provided copies of
the code.
[SOURCE: New York Times (C1), AUTHOR: John Sullivan]
(http://www.nytimes.com/library/tech/00/08/biztech/articles/18dvd.html)
See Also
FILM INDUSTRY WINS A VICTORY IN BATTLE AGAINST DVD COPYING
[SOURCE: Wall Street Journal (B6), AUTHOR: Lee Gomes]
(http://interactive.wsj.com/articles/SB966535449808186585.htm)
JUDGE BACKS HOLLYWOOD IN DVD MOVIE CASE
[SOURCE: Washington Post (E01), AUTHOR: David Streitfeld]
(http://washingtonpost.com/wp-dyn/articles/A47253-2000Aug17.html)

PRIVACY

EPIC ASKS COURT TO SET DEADLINE FOR RELEASE OF CARNIVORE INFORMATION
Issue: Privacy
In a submission filed on August 17, EPIC asked U.S. District Judge James
Robertson to order the FBI to release information concerning the Carnivore
surveillance system no later than December 1. In an FOIA lawsuit filed by
EPIC, Judge Robertson had ordered the FBI to establish a timetable for
release of the information. The Bureau identified 3000 pages of relevant
material and set a release schedule that would begin in 45 days, but did not
include a date for the completion of processing. After EPIC filed suit on
August 2, the FBI granted EPIC's request to expedite the processing of a
request submitted to the Bureau on July 12.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/privacy/litigation/carnivore_release.html)

JUDGE SHELVES PLAN FOR SALE OF ONLINE CUSTOMER DATABASE
Issue: Privacy/Ecommerce
Judge Carol Kenner set aside a Federal Trade Commission plan to limit the
sale of Toysmart.com's customer database. Absent an actual buyer, the judge
ruled, the concerns about the misuse of information were hypothetical. "The
problem would go away if we had a privacy law that required all companies to
treat information fairly whether they got it in a fire sale or obtained it
from the customers directly," said Jason Catlett, a privacy advocate who
maintains the Junkbusters.com Web site.
[SOURCE: New York Times (C2)]
(http://www.nytimes.com/library/tech/00/08/biztech/articles/18toys.html)
See Also
JUDGE REJECTS TOYSMART'S AGREEMENT WITH FTC BECAUSE OF LACK OF BUYER
[SOURCE: Wall Street Journal (B6), AUTHOR: Jerry Guidera And Frank Byrt]
(http://interactive.wsj.com/articles/SB966545566173284584.htm)

JOBS

VERIZON UNIONS REVISE PLAN AS TALKS NEAR DEADLINES
Issue: Jobs
High-level representatives of Verizon and the striking unions met through
the night to try to resolve the issue of movement of work resulting from the
merger of Bell Atlantic and GTE. As the unions presented a unified proposal,
mandatory overtime seem to slip as a key issue. A FTC representative said,
"obviously we're disappointed" by the ruling, but said the judge had not
rejected the "basic premise" of the Commission's position.
[SOURCE: New York Times (C5), AUTHOR: Simon Romero]
(http://www.nytimes.com/library/financial/081800verizon-talks.html)
See Also
UNIONS REPORT PROGRESS IN NEGOTIATIONS WITH VERIZON AS TALKS CONTINUE
[SOURCE: Wall Street Journal (A4), AUTHOR: Jennifer Rewick]
(http://interactive.wsj.com/articles/SB966556121730288948.htm)

--------------------------------------------------------------
...and we're outta here. Have a great weekend.

(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.oneworld.net)
Open Studio: The Arts Online (www.openstudio.org)
Sound Partners for Community Health (www.soundpartners.org)
To subscribe to other free Benton Foundation newsletters, visit:
(http://www.benton.org/Resources/home.html)