September 2000

INTERNET
TOP Grantees (NTIA)
U.S. Regulators Open Inquiry Into Nature of Cable-Net Service (WSJ)
No Gift of Billions to the "Baby Bells" (CFA)
Modern Telecommunications Help Protesters Attain Goals (WSJ)
Suit Considers Computer Files (CyberTimes)
Americans Favor U.S. Web Services; Privacy a Concern (WP)

MERGERS
Europe Reported Ready to Block Time Warner's Deal With EMI (NYT)

ANTITRUST
Microsoft Judge says Ruling at Risk (WP)

JOBS
A Strike No One Can Win (NYT)

RADIO
LPFM Reconsideration Order (FCC)

INTERNET

TOP GRANTEES
Issue: Digital Divide
From Press Release: Commerce Secretary Norman Mineta announced the award of
$13.9 million in Federal grants to 35 organizations across the United States
to help move the U.S. to an era of digital inclusion by funding innovative
uses of advanced telecommunications technologies in underserved areas. The
grants, provided by the Department's Technology Opportunities Program (TOP),
will be matched by contributions from the private sector and state and local
organizations. "It's important to note that these awards are not "federal"
initiatives -- all of these projects come from the community," pointed out
Mineta. "They reflect a fundamental approach the program has always taken --
issue a broad challenge and then let local communities identify their own
needs and propose their own creative applications of technology." The
Federal funds will be matched by $18 million raised by the grant recipients
from their project partners and sponsors. See a full list of grantees at
(http://www.ntia.doc.gov/otiahome/top/grants/fy2000awards.html)
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/2000/topre92800.htm)

U.S. REGULATORS OPEN INQUIRY INTO NATURE OF CABLE-NET SERVICE
Issue: Cable/Internet/OpenAccess
The Federal Communications Commission took the first step toward forming a
national policy on whether cable companies must open their lines to rival
Internet service providers, a move that could shape the future of high-speed
Internet access. The outcome will be the definitive word in the fierce
battle between Internet service providers, and cable companies that has been
raging for two years. It will also shape how millions of consumers receive
high-speed Internet service, which is expected to become a staple
technology. But FCC officials were careful to note that the proceeding is
separate from the AOL-Time Warner merger review and that one won't affect
the other. The action is the first the FCC has taken to intervene in the
deployment of high-speed Internet access. "The time is right to assess the
competitive development of this market," said FCC Chairman William Kennard.
"It is unclear, however, whether a marketplace solution will develop absent
some form of intervention." But a final decision in this preliminary step is
several months away, and any regulation, if needed, is at least a year away.
[SOURCE: Wall Street Journal, AUTHOR: Jill Carroll]
(http://interactive.wsj.com/articles/SB97017114434038180.htm)
See the FCC press release at
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/2000/nrmc0041.html)

NO GIFT OF BILLIONS TO THE "BABY BELLS"
Issue: Internet/Telephony
From Press Release: In a letter to members of the House Committee on
Commerce, Consumers Union and the Consumer Federation of America urged
opposition to H.R. 4445, the Reciprocal Compensation Adjustment Act of 2000.
"H.R. 4445 would give incumbent telephone companies an annual gift of $2
billion to $4 billion, and American consumers would pick up the tab," stated
Dr. Mark N. Cooper, director of research of Consumer Federation of America.
According to the groups, the bill left the Subcommittee on
Telecommunications, Trade and Consumer Protection providing an additional
free ride on the local telephone wires to the cellular phone industry,
"put[ting] billions in their pockets, too." The bill would work to eliminate
reciprocal compensation, which compensates local exchange carriers for
terminating telephone traffic that commenced on another carrier's lines.
Originally insisting upon reciprocal compensation, incumbent phone companies
now dislike such arrangements as more money has flowed to competitors than
the incumbents anticipated. The consumer groups raised concerns that such a
change could work to dramatically increase costs to Internet service
providers (ISPs)--estimated to be as much as 33%, which would be passed on
to consumers.
[SOURCE: Consumer Federation of America]
(http://www.consumerfed.org/)

MODERN TELECOMMUNICATIONS HELP PROTESTERS ATTAIN GOALS
Issue: Online Advocacy
Protesters at the World Bank/IMF annual meeting in Prague think
globe-shrinking modern communications are helping their cause. Anarchists,
antiglobalists and capitalist foes are using the Internet to organize
protests across continents, spread their credos far and wide, and
more-easily influence events around the world. They are global and are using
the same modern telecommunications that are creating in the "Global Village"
against which many of them rail. Many protesters in Prague found their way
to the Czech Republic this week with the aid of Web sites. Once in Prague,
the protesters plot actions using mobile phones and laptop computers. The
irony is that they're using the Internet to organize, which is seen as a
globalizing force. Meanwhile, Jim Wolfensohn, the president of the World
Bank, is staking out the same cyberterritory for the forces of global
interconnectedness. "Globalization is about technologies that have already
transformed our abilities to communicate in a way that would have been
unimaginable a few years ago," Mr. Wolfensohn said in a speech Monday. As
useful as the Internet was to protesters, its very nature makes others
uneasy. While talking about the emerging "digital divide" between
technological haves and have-nots, the antiglobalization forces are aware
that their dependence on the increasingly corporate-owned, border-defying
Internet opens them up to charges of hypocrisy.
[SOURCE: Wall Street Journal, AUTHOR: Edward Harris]
(http://interactive.wsj.com/articles/SB970171049699871243.htm)

SUIT CONSIDERS COMPUTER FILES
Issue: EdTech
A New Hampshire parent, concerned when he learned that his children's school
was not using filtering software, asked the school to let him inspect files
that would show what Web sites students were visiting. But the
superintendent for the two local districts refused, arguing that the schools
were duty bound to protect the privacy of their students. Sounds like a
lawsuit, and it is. determine whether a computer file that tracks Internet
use in a New Hampshire public school is a public document, similar in spirit
to school budgets and the minutes of school board meetings. The answer is
important because under the state's liberal Right-To-Know Law, public
documents are subject to disclosure upon request. "Parents have a right to
see which textbooks are being used in class and which books are on the
school library shelves," says the concerned parent. "If certain Internet Web
sites are also part of the curriculum, then it's the prerogative of parents
to see those as well."
[SOURCE: CyberTimes, AUTHOR: Carl Kaplan (kaplanc( at )nytimes.com)]
(http://www.nytimes.com/2000/09/28/technology/29CYBERLAW.html)
(requires registration)

AMERICANS FAVOR U.S. WEB SERVICES; PRIVACY A CONCERN
Issue: Privacy
A survey by the Council for Excellence in Government concludes that
Americans have a positive outlook on government services moving to the
Internet but are very concerned about the privacy of their personal information
and have no desire to cast votes online. Fifty-four percent of Internet
users surveyed said they have visited a federal agency Web site. 71 percent
of that group described the site as either excellent or good. Fully 35% of
the 1,003 adults polled said online government services and information has
had a positive effect on the way government operates. But moving additional
operations online is not at the top of their lists of things government
should spend its time or money on. A majority said they have no interest in
casting votes online for federal candidates. Only 38 percent said they favor
a move to online balloting while 59 percent said they oppose such a change.
Of that group, 48 percent said they "strongly" oppose voting on the
Internet. Americans appear nearly split on how the transition to
e-government should be financed: 46 percent said it should be covered by tax
dollars, but 39 percent said users of online government sites should pay a
fee.
[SOURCE: Washington Post (A31), AUTHOR: Ben White]
(http://www.washingtonpost.com/wp-dyn/articles/A40872-2000Sep28.html)

MERGERS

EUROPE REPORTED READY TO BLOCK TIME WARNER'S DEAL WITH EMI
Issue: Mergers
European regulators may block the proposed Time Warner/EMI merger, but
approve the America Online/Time Warner deal. Mario Monti, the European
antitrust commissioner, made recommendations to antitrust regulators of
individual countries yesterday in a closed door meeting. The Time Warner/EMI
deal would reduce the number of worldwide music distributors to four from
five, and they are pushing for divestitures that the companies are loath to
offer. Regulators appear ready to approve the AOL/TW deal, however,
especially if TW abandons the EMI deal. "If the problems with the EMI deal
were resolved either way, then that would remove the major impediment" to
approval of the AOL merger, one regulator said.
[SOURCE: New York Times (C1), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/2000/09/29/technology/29ONLI.html)
(requires registration)
See Also:
TIME WARNER, EMI OFFER TO SELL VIRGIN IN A LAST-DITCH BID TO SWAY REGULATORS
[SOURCE: Wall Street Journal (), AUTHOR: Martin Peers & Philip Shiskin]
(http://interactive.wsj.com/articles/SB970149845720666041.htm)
(Requires subscription)
EU PUTS A BIG 'IF' ON AOL MERGER
[SOURCE: Washington Post (A01), AUTHOR: William Drozdiak]
(http://washingtonpost.com/wp-dyn/articles/A38915-2000Sep28.html)
FOR MUSIC FIRMS, A NEW TUNE
[SOURCE: USA TODAY (E01), AUTHOR: Christopher Stern]
(http://www.washingtonpost.com/wp-dyn/articles/A39253-2000Sep28.html)

ANTITRUST

MICROSOFT JUDGE SAYS RULING AT RISK
Issue: Antitrust
U.S. District Judge Thomas Penfield Jackson said yesterday that "virtually
everything" he did in the antitrust case may be vulnerable on appeal, and
blamed the software giant's "intransigence" for his breakup decision.
Jackson said "public misperceptions" fueled by "public-relations campaigns"
have created the impression that he wants to regulate the software industry.
"I believed, and still believe, that it is vitally important to public
confidence in the judicial system that my role be fully understood," Jackson
said. "In particular, it should be clearly understood that I do not and have
never aspired to be a federal regulator of the software industry, nor for
that matter to enable the U.S. government to become one." Jackson also
explained that his decisions may be vulnerable on appeal: not only the
remedy but also his attempts to conduct the trial quickly by having written
direct testimony and curtailed discovery.
[SOURCE: Washington Post (E1), AUTHOR: James V. Grimaldi]
(http://www.washingtonpost.com/wp-dyn/articles/A39357-2000Sep28.html)

JOBS

A STRIKE NO ONE CAN WIN
Issue: Jobs
[Op-Ed] As the Screen Actors Guild strike against advertisers continues,
testimony from a "scab," a nonunion actor who is getting work on
commercials. Before the strike, the only way to get this work would be to be
in the union, but the only way to get in the union is to already have a
union job or know someone with enough pull to get you in. Now, there's
easier ways in -- spend 80 hours manning picket lines or tell SAG where you
find scab work so it can set up a protest (if you refuse to cross the picket
line, you get a union card on the spot. While going to work recently, Saint
Bornstein was harassed and photographed -- strikers warned she'd never get
in the union after the strike is over. "This sounds like a Hollywood
blacklist to me," LSB concludes, "but maybe I'm letting my imagination run
away with me.
[SOURCE: New York Times (A29), AUTHOR: Leslie Saint Bornstein, actress]
(http://www.nytimes.com/2000/09/29/opinion/29BORN.html)
(requires registration)

RADIO

LPFM RECONSIDERATION ORDER
Issue: Radio
Recently adopted LPFM reconsideration order is now available online.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/Orders/2000/fcc00349.pdf)

--------------------------------------------------------------
...and we're outta here. We'll be back, fall TV schedule in hand, on Monday.

POLITICAL DISCOURSE
Parties Playing A Larger Role In Election Ads (NYT)
The Ad Campaign: Another Look at Gore the Man (NYT)

MEDIA & SOCIETY
Hollywood Executives Go To Washington (NYT)

MERGERS
WorldCom Appeals EU Decision That Blocked Purchase
of Sprint (WSJ)
House Panel Quizzes Case, Levin About AOL-Time Warner
Merger (WSJ)
Market Place: News Corp and Liberty Complete Asset Swap (NYT)

INTERNET
Merging TV With the Internet (NYT)
Meet the New Web. Same as the Old Web (NYT)
A Pen That Could Let You Scribble Your Way Across
the Internet (NYT)

DIGITAL DIVIDE
Technology Opportunities Program Grants to be Announced Today (NTIA)

PRIVACY
Living.com Settles Bankruptcy Case Involving Customer Lists (EPIC)

ADVERTISING
Ads on Cell Phones (NYT)

POLITICAL DISCOURSE

PARTIES PLAYING A LARGER ROLE IN ELECTION ADS
Issue: Political Discourse
A study on television spending released yesterday by the Brennan Center for
Justice at the New York University School of Law shows that from June 1 to
Sept. 20, the Republican and Democratic parties have spent more than $52
million on commercials, while the Bush and Gore campaigns have spent less
than half that, about $21 million. "What's confirmed this week is that for
the first time in history, the political parties are dominating the ad wars
in the presidential campaign," said E. Joshua Rosenkranz, president of
Brennan, a legal and research center that has developed a specialty in
campaign finance issues. The ads are paid for with "soft money," the
unregulated party donations by corporations and wealthy individuals. The
candidates' campaign organizations are barred from accepting more than
$2,000 from any one individual. "Twenty years ago, I don't know if the
R.N.C. and D.N.C. were doing much more than sponsoring brochures," said
William Benoit, a professor of communication at the University of Missouri
who has studied 50 years of campaign advertising. [Much more at URL below]
[SOURCE: New York Times (A1), AUTHOR: Peter Marks]
(http://www.nytimes.com/2000/09/28/politics/28BUY.html)
(requires registration)
See Also:
GORE CHALLENGING BUSH TO BAR SOFT MONEY FOR ADS
[SOURCE: New York Times (A21), AUTHOR: Kevin Sack]
(http://www.nytimes.com/2000/09/28/politics/28GORE.html)
(requires registration)

THE AD CAMPAIGN: ANOTHER LOOK AT GORE THE MAN
Issue: Political Discourse
Another in NYT's ongoing series on specific political ads. "Veteran," a new
commercial being aired by the Gore/Lieberman campaign, highlights the vice
president's stands on several issues, including tax cuts, welfare, child
support and Internet pornography. The ad stakes out ground for Gore that
President Clinton helped move Democrats, too, stealing issues that
Republicans have usually attacked Democrats on. It is being aired in 17
unidentified states. See a full description of the ad at the URL below.
[SOURCE: New York Times (A21), AUTHOR: Alison Mitchell]
(http://www.nytimes.com/2000/09/28/politics/28ADBO.html)
(requires registration)

MEDIA & SOCIETY

HOLLYWOOD EXECUTIVES GO TO WASHINGTON
Issue: Media & Society
Senators turned up the criticism of the movie industry at a hearing
yesterday on marketing violent films to children. Eight Hollywood executives
testified and answered for a new industry announcement about policies aimed
to curb past abuses. "I don't understand this language," said Senator
McCain, chairman of the commerce committee. "I think it's filled with
loopholes." On the campaign trail, Senator Joseph I. Lieberman of
Connecticut, the Democratic vice-presidential candidate, said the language
of the movie industry's policy "almost suggests that one could appropriately
specifically target children in their advertising of R-rated films, and
that's wrong." Four executives promised they would not market R-rated films
to teenagers under 17; others insisted that some R-rated films are
appropriate for teen audiences. At the conclusion of the hearing, Sen Sam
Brownback (R-KS) told the executives: "You've really got to help us out.
Parents are really struggling out there. You are part of the solution and
part of the problem."
[SOURCE: New York Times (A18), AUTHOR: David Rosenbaum]
(http://www.nytimes.com/2000/09/28/politics/28VIOL.html)
(requires registration)
See Also:
PARENTS SAY CENSORING FILMS IS THEIR JOB, NOT POLITICIANS'
Issue: Media & Society
In interviews conducted in Westlake (MI), a Detroit suburb, parents told the
Times that it was their responsibility -- and not that of the president,
Congress or even Hollywood -- to filter what reaches their children. The
candidates, they suggested, should save their breath for the economy and
health care. Read what these parents have to say at the URL below.
[SOURCE: New York Times (A1), AUTHOR: Jacques Steinberg]
(http://www.nytimes.com/2000/09/28/national/28PARE.html)
(requires registration)
TWO STUDIOS OFFER NEW AD PLANS
[SOURCE: USAToday (14A) AUTHOR: Andy Seiler]
(http://www.usatoday.com/usatonline/20000928/2697391s.htm)

MERGERS

WORLDCOM APPEALS EU DECISION THAT BLOCKED PURCHASE OF SPRINT
Issue: Mergers
WorldCom of U.S. has appealed the European Commission's decision to block
it from acquisition of rival Sprint. The petition to annul the commission's
June 28 decision to halt the deal was filed at the European Court of First
Instance in Luxembourg. Although WorldCom does not expect the outcome of the
petition to resurrect the failed deal, the company hopes a favorable ruling
might make it easier to complete other deals in the future. In it's
petition, WorldCom is arguing that the commission "fundamentally
misperceived both how Internet services are provided and the highly
competitive nature of the Internet marketplace." The commission blocked the
WorldCom-Sprint deal, arguing that it would have created a dominant player
in the market for top-level Internet-switching services. A commission
spokeswoman said Thursday that the European Union's executive body "is
confident that the decision is sound and will refute the legal challenge."
[SOURCE: Wall Street Journal (Interactive), AUTHOR: A WSJ.COM News Roundup
(http://interactive.wsj.com/articles/SB970133155406291496.htm)
(Requires subscription)

HOUSE PANEL QUIZZES CASE, LEVIN ABOUT AOL-TIME WARNER MERGER
Issue: Mergers
AOL Chairman Steve Case and Time Warner Chairman Gerald Levin testified on
Capitol Hill Wednesday about their companies' proposed merger, amid protests
from some representatives concerned that the views of competitors were
excluded from the hearing. Lawmakers mostly probed the two chief executives
about two top issues for federal regulators: guaranteeing open access to
Time Warner's cable systems and opening up AOL's instant-messaging system.
The two executives renewed their pledges to allow competitors access to
their systems, but they said they shouldn't have to formalize those
agreements as a condition of winning regulatory approval for their merger.
Mr. Case added he favors development of a national policy for cable access
as well as development of an industry standard for instant messaging rather
than a "piecemeal approach" of legislating by way of the merger approval.
Federal regulators are scrutinizing AOL and Time Warner's proposed merger
for possible antitrust violations and any other "public
interest" concerns. Both the Federal Communications Commission and the
Federal Trade Commission are expected to deliver a verdict in coming weeks.
[SOURCE: Wall Street Journal (B10), AUTHOR: Julia Angwin]
(http://interactive.wsj.com/articles/SB970079398189396755.htm)
(Requires subscription)
See Also:
HOUSE OPENS AOL HEARING
[SOURCE: Washington Post (E01), AUTHOR: Alec Klein]
(http://washingtonpost.com/wp-dyn/articles/A30923-2000Sep27.html)
For more see:
THE FUTURE OF INTERACTIVE TELEVISION
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/9eca73e25f21389f852569670042dd3a?OpenDocument)

MARKET PLACE: NEWS CORP AND LIBERTY COMPLETE ASSET SWAP
Issue: Alliance
News Corp and Liberty Media confirmed yesterday that they had agreed on a
complex asset swap that will increase Liberty Media's stake in News Corp,
while News Corp picks up Liberty's Gemstar-TV Guide International
holdings. The merged assets will allow for the Gemstar-TV Guide service to
be deployed throughout News Corp's wide satellite holdings, effectively
increasing the value of both News Corp's and Liberty's investment in the
to-be-spun-off Sky Global Networks. Analysts say that Rupert Murdoch is
intent on making this deal to bolster his bid for General Motors' Hughes
Electronics unit. Hughes owns DirecTV, a satellite TV service. News
Corp's acquisition of DirecTV would give it a U.S. component for the
international pay TV services of Sky Global Networks. Under the complicated
agreement, Liberty will swap 86.5 million shares (~$6.3 billion) of Gemstar
as well as some South American cable interests in exchange for News Corp
releasing 121.5 million (~$5.79 billion) nonvoting receipts in News Corp.
and $1.4 billion worth of stocks in Sky Global stocks. Liberty Media is
owned by AT&T.
[SOURCE: New York Times (C14), AUTHOR: Geraldine Fabrikant]
(http://www.nytimes.com/)
(requires registration)

INTERNET

MERGING TV WITH THE INTERNET
Issue: Convergence
A new MTV show, "Direct Effect," will encourage viewers to use their
computers as they watch TV. Viewers can help select what music videos will
be featured on the show, by voting on the Intent in real time. "I think the
presence of this sort of show is really reassuring," said Todd Boyd, a
professor at the University of Southern California's School of Cinema and
Television and an expert on hip-hop culture, "especially when you hear so
much about the 'digital divide' and large numbers of black people and
minorities being left out of the digital revolution." According to a recent
study MTV Networks/Viacom Study of Media, Entertainment and Leisure Time,
the significant swell in the number of people owning and using personal
computers in their homes has not resulted in the television losing audience
to the Internet. Instead, the two
media are co-existing. Betsy Frank, executive vice president for research
and planning at MTV Networks, said many people are multitasking, reflecting
something she called "behavioral convergence," which she defined as "people
acting as if their media platforms have already converged even though the
technology isn't there yet."
[SOURCE: New York Times (D10), AUTHOR: Michel Marriot]
(http://www.nytimes.com/2000/09/28/technology/28MTVV.html)
(requires registration)

MEET THE NEW WEB. SAME AS THE OLD WEB
Issue: Wireless
While 7.4 million American have wireless devices that can access the
Internet, only a small percentage of users with Web-ready devices actually
exploit that feature. One reason is cost. Sprint PCS, for example, estimates
that its customers pay an average of 25 cents/minute to surf the Web.
Another barrier is the limited content available on the wireless Web. Mostly
stock quotes, sports scores and weather forecasts, wireless data are served
up in basic text menus with a minimum of graphics. But Web-enabled phones
are quickly improving and some even say that many wireless users might
eventually leave behind the wired Web, with its slow downloads and
overwhelming multimedia features, just as many cell phone users have
abandoned their land lines.
[SOURCE: New York Times (D1), AUTHOR: Ian Austin]
(http://www.nytimes.com/2000/09/28/technology/28WEBB.html)
(requires registration)

A PEN THAT COULD LET YOU SCRIBBLE YOUR WAY ACROSS THE INTERNET (NYT)
Issue: InfoTech
Three companies -- Ericsson, Anoto and Time Manager -- are developing a pen
that will be able to send e-mail, faxes and e-commerce orders.
Scheduled for introduction in the second half of 2001, the Anoto Bluetooth
pen looks, handles and writes like a normal ink pen. But the Anoto pen
contains image processing and radio broadcast circuitry designed to transmit
what you write, using the Bluetooth wireless networking standard. Used on
special paper, with patterns of tiny dots, a code is formed that tells the
pen what to do with the data it is writing. Data is automatically
transmitted if the pen is within 30 feet of its owner's Bluetooth-capable
cell phone, handheld computer or network-based station.
[SOURCE: New York Times (D12), AUTHOR: Matt Lake]
(http://www.nytimes.com/2000/09/27/technology/28HOWW.html)
(requires registration)

DIGITAL DIVIDE

TECHNOLOGY OPPORTUNITIES PROGRAM GRANTS TO BE ANNOUNCED TODAY
Issue: Digital Divide
From Media Advisory: Commerce Secretary Norman Y. Mineta will release the
names of the FY 2000 winners of Technology Opportunities Program (TOP)
grants on Thurs., Sept. 28. The grants, awarded annually since 1994, are
made to local organizations that use advanced telecommunications technology
to bridge the digital divide by helping disadvantaged groups. Secretary
Mineta will announce the award of 35 grants totaling $13.9 million.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/2000/topma92600.htm)

PRIVACY

LIVING.COM SETTLES BANKRUPTCY CASE INVOLVING CUSTOMER LISTS
Issue: Privacy
On September 25, the Texas Attorney General's office announced that it had
settled with bankrupt e-tailer Living.com over the disposition of its
customer data. Living.com, a home furnishings website, filed for bankruptcy
on August 29. The agreement reached with the Attorney General requires the
company to destroy financial data such as credit card numbers and give
customers an opportunity to opt-out before other personal data is
transferred to a third party. The settlement still has to be approved by a
Federal bankruptcy judge.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

ADVERTISING

ADS ON CELL PHONES
Issue: Wireless
In exchange for sharing personal information and accepting several
advertising messages a day, 1,000 test users in Boulder (CO) will receive
free cell phones and subsidized wireless service from AT&T. Beginning
tomorrow, SkyGo will begin to deliver pitches to consumers on behalf of more
than two dozen local and national businesses, including CompUSA and
Goodyear. Not everyone, however, is enthusiastic about the idea of wireless
advertisements. "There are only a few places for privacy these days," said
Michael C. Malarkey, who unexpectedly received an ad on his cell phone. "And
now you can cross the cell phone off that list." Representative Rush Holt
(D-NJ) said he planned to introduce a bill soon that would expand federal
legislation that already protects consumers from unwanted faxes to include
wireless spam.
[SOURCE: New York Times (D7), AUTHOR: Jeffery Selingo]
(http://www.nytimes.com/2000/09/28/technology/28ADS.html)
(requires registration)

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

MEDIA & SOCIETY
Major Studios Used Children To Test-Market Violent Films (NYT)
Studios to Curb Marketing Of R-Rated Films to Youth (NYT)
Banned Books Week (EPIC)

POLITICAL DISCOURSE
Let Them Eat Cable (WP)
On MTV, Gore Hits Hip Buttons and Dreams of Air Force One (NYT)

EDTECH
Teachers Question Critical Study of Classroom Computers (CyberTimes)

ECOMMERCE
On the Web, Price Tags Blur (WP)

MERGERS/ALLIANCES
Holding Out for 'Open Access' to Cable (WP)
German Diplomats Respond to Opposition To Deutsche
Telekom's Acquisition Plans (WSJ)
VoiceStream Deal Could Clear Hurdle (USA)
Nokia, Ericsson and Motorola Join To Develop Global
Mobile Services (WSJ)

ANTITRUST
Supreme Court Declines to Hear The Microsoft Antitrust Case (WSJ)

INFRASTRUCTURE
NTT Intends to Link Homes To Web With High-Speed Fiber (WSJ)
The Digital Handshake: Connecting Internet Backbones (FCC)

TELEVISION
The Future of the Interactive Television Services Marketplace (House)

MEDIA & SOCIETY

MAJOR STUDIOS USED CHILDREN TO TEST-MARKET VIOLENT FILMS
Issue: Media & Society
Movie studios have routinely used children under 17 (and as young as 9) to
test violent, R-rates movies. Jack Valenti, the trade association's
chairman, said a report by the Federal Trade Commission has prompted studios
to take "a fresh new look at the way we market films." R-rated films may
still be tested on kids, but they will have to be accompanied by an adult.
[Maybe the studios will supply the adults, too?] The details of the
marketing campaigns withheld from the Federal Trade Commission's are
contained in the supporting documents, which were obtained by The New York
Times. The practices include recruiting members of targeted audiences and
conducting test screenings months before a movie is released. For PG-13
movies which warn that violent content may be "inappropriate" for children
under 13, the promotion of the films are broadened to include children as
young as 4.
[SOURCE: New York Times (A1), AUTHOR: Doreen Carvajal]
(http://www.nytimes.com/2000/09/27/arts/27VIOL.html)
(requires registration)
See Also:
MOVIE MARKETING PLANS AIRED
[SOURCE: USAToday (4A), AUTHOR: Andy Seiler]
(http://www.usatoday.com/usatonline/20000927/2690906s.htm)

STUDIOS TO CURB MARKETING OF R-RATED FILMS TO YOUTH
Issue: Media & Society
Jack Valenti, president of the Motion Picture Association of America, said
at a news conference Tuesday that each of the major movie-making companies
had set a "goal of not inappropriately specifically targeting children in
its advertising of films rated R for violence." The executives are gearing
up for a Senate Commerce Committee hearing today that will likely include
some sharp questions from senators. The industry announced voluntary
efforts: 1) studios will not include children younger than 17 in focus
groups testing movies rated R for violence unless the children are
accompanied by a parent or guardian and 2) previews for such movies would no
longer be shown before G-rated films. Neither voluntary effort has an
enforcement mechanism. As executives from eight movie studios testify today,
additional limits on marketing may be announced. Eighty percent of adults
believe there is a connection between violence in entertainment and violent
conduct.
[SOURCE: New York Times (A15), AUTHOR: David Rosenbaum]
(http://www.nytimes.com/2000/09/27/arts/27VALE.html)
(requires registration)
See Also:
MARKETING VIOLENCE TO CHILDREN
Issue: Media & Society
The full committee hearing on Marketing Violence to Children II will be
broadcast Live on the Internet. To access the hearing go to the Commerce
Committee website at (http://commerce.senate.gov), or if computer is already
equipped with RealPlayer, go to (pnm://vrn1.webcasting.evoke.com
/basic/providers/senate/commerce.rm)
The hearing is scheduled for Wednesday, September 27, at 9:30 a.m. in room
253 of the Russell Senate Office Building. Senator John McCain (R-AZ),
Chairman of the committee, will preside.
Following is the tentative witness list (not necessarily in order of
appearance):
Mr. Rob Friedman, Vice Chairman, Motion Picture Group, Paramount; Mr. Jim
Gianopulos, President, Twentieth Century Fox; Mr. Mel Harris, President and
COO, Sony; Mr. Alan Horn, President and COO, Warner Brothers; Mr. Robert
Iger, President and COO, Disney, Miramax; Mr. Chris McGurk, Vice Chairman
and COO, MGM; Mr. Walter Parkes, Co-Head, Dreamworks; Ms. Stacy Snider,
Chairman, Universal.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-223.htm)

BANNED BOOKS WEEK
Issue: Media & Society
"Fish in the River of Knowledge", the Nineteenth Annual Banned Books Week
(http://www.ala.org/bbooks/index.html), will take place from September 23rd
through the 30th. The event highlights attempts to remove and ban books from
schools, public libraries, and bookstores and the need for vigilant
protection of free expression. The sponsor organizations have also put
together the top ten list of most challenged books in 1999 as well as the
hundred most challenged books of the decade.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

POLITICAL DISCOURSE

LET THEM EAT CABLE
Issue: Political Discourse
[Editorial] While the 13 local TV stations owned by General Electric, the
corporate parent of NBC, pocketed $23.5 million airing political ads between
January and July of this year, NBC's flagship broadcast channel is not going
to carry the first presidential debate. Rupert Murdoch's Fox stations, which
earned from $9.2 million political ads during the same period, will not be
carrying any of the Presidential debates. Both companies will instead air
the debates on their cable channels, which are available only to paying
subscribers and which reach far fewer voters. The Post chides the networks
for neglecting their obligation to improve public discourse. "The networks
have headed off attempts in Congress to make them join wireless telephone
companies in paying for the airwaves they occupy. In exchange for free
spectrum, the broadcasters have accepted that they must serve the public
interest." The Post concludes: "Congress may fairly wonder why it is giving
away the air to those who do not honor that deal."
[SOURCE: Washington Post (A22), AUTHOR: Washington Post Editorial Staff]
(http://www.washingtonpost.com/wp-dyn/articles/A24364-2000Sep26.html)

ON MTV, GORE HITS HIP BUTTONS AND DREAMS OF AIR FORCE ONE
Issue: Political Discourse
Less than half of those ages 18 to 24 said they planned to vote this year,
compared with 80 percent of older Americans. But Vice President Al Gore took
his message to this audience yesterday, taping an appearance at the
University of Michigan for MTV. Although he did not say much new, VP Gore
talked about his support for civil unions between homosexuals, his
opposition to the legalization of medical marijuana and his distaste for
misogynistic music. He also made references to Napster and "Smackdown!" the
World Wrestling Federation TV show. Any drama in the show came from the
students themselves as they personalized questions the Gore campaign usually
addresses in position papers: 1) A black student asked Mr. Gore about racial
profiling by telling how he was recently surrounded by six police cars while
driving with four black friends. 2) A gay man asked why his heterosexual
friends should be able to drive to Las Vegas and marry someone they barely
know when he cannot form a legal union with a longtime, committed partner.
3) A woman who opposes abortion rights asked about that issue by pointing
out that her friends sometimes use abortion as a form of birth control.
Answering a question about popular culture and the entertainment industry,
Gore said he does not support censorship, but he also did not hesitate to
offer his personal view that Americans should protest entertainment that
advocates homophobia, violence against women or racial discrimination. "I
don't go along with the notion that if material like that becomes widely
accepted and nobody thinks a second thought about it that there are no
consequences to it," he said. "I think that what we listen to and enjoy and
spread around in our culture does have an effect on us."
[SOURCE: New York Times (A16), AUTHOR: Kevin Sack]
(http://www.nytimes.com/2000/09/27/politics/27GORE.html)
(requires registration)

EDTECH

TEACHERS QUESTION CRITICAL STUDY OF CLASSROOM COMPUTERS
Issue: EdTech
a new study underwritten by the Alliance for Childhood -- "Fools Gold: A
Critical Look at Computers in Childhood" -- says there is not enough
research into the impact computers could have on the developing minds and
bodies of young children. "The reason we're calling for a time-out is we
think we need to get more information before we put a computer in front of
each kid," said Edward Miller, co-author of the study and an education
policy analyst based in Cambridge, Mass. "We don't think computers are
evil." But teachers are now questioning the report. "With some kids, it's a
way for them to get excited and learn," said Beth Lang who teaches second
and third grades at Lakewood Elementary School in Overland Park (KS). "Ten
years ago, our technology was 'Kids, when you finish your math lesson, go
and play a math game'" on the computer, said Candy Atwood, instructional
technology specialist for the Plano Independent School District in Texas.
"Our technology now is not a game. We are really at the point when our
computers are not used for babysitting anymore." The success of computers in
schools, teachers say, is based on how well teachers are trained to use it.
Judy Hamilton, chief executive of Classroom Connect, which offers
Internet-based curriculum and teacher training, said classroom computing is
too new to call for a time-out. "It's a step process," she said. "First you
have to give them the equipment. Then you have to train the teachers. We're
just at the beginning."
[SOURCE: CyberTimes, AUTHOR: Rebecca Weiner (rweiner( at )nytimes.com)]
(http://www.nytimes.com/2000/09/26/technology/27EDUCATION.html)
(requires registration)

ECOMMERCE

ON THE WEB, PRICE TAGS BLUR
Issue: Ecommerce
"Amazon was trying to figure out how much their loyal customers would pay,"
said Barrett Ladd, a retail analyst with Gomez Advisors. "And the customers
found out." Amazon.com is receiving backlash after experimenting with
"dynamic pricing," which gauges a shopper's desire, measures his means and
then charges accordingly. "Dynamic pricing is the new reality, and it's
going to be used by more and more retailers," said Vernon Keenan, a San
Francisco Internet consultant. "In the future, what you pay will be
determined by where you live and who you are. It's unfair, but that doesn't
mean it's not going to happen." Amazon says the pricing variations, which it
stopped as soon as the complaints began coming in from DVDTalk members, were
completely random. "It was done to determine consumer responses to different
discount levels," said spokesman Bill Curry. "This was a pure and simple
price test. This was not dynamic pricing. We don't do that and have no plans
ever to do that."
[SOURCE: Washington Post (A1), AUTHOR: David Streitfeld]
(http://washingtonpost.com/wp-dyn/articles/A15159-2000Sep25.html)

MERGERS/ALLIANCES

HOLDING OUR FOR 'OPEN ACCESS' TO CABLE
Issue: Broadband/Open Access
Lead by Richard Quigley, assistant city manager for Daytona Beach,
several municipalities in South Florida have refused to transfer Time
Warner's cable license to AOL as part of the companies' merger. Quigley,
and fellow neighboring regulators worry about what the creation of
AOL Time Warner means for the future of the Internet, and whether it
will open up its cable lines into homes to rival Internet providers.
They feel that AOL Time Warner non-binding agreements pledging "open
access," are not enough. The Florida dispute underscores how the
once little-know issue of open access has gained traction. In the past
two years, while both the Federal Communications Commission and Congress
have allowed the marketplace to resolve the issue, about a dozen cities
have sought to test their authority in the same way Daytona Beach has.
All the power to approve, deny or condition the merger lies with federal
authorities and the European Union, however. And a recent appeals court
decision in San Francisco affirmed the right of federal -- not
local -- authorities to regulate cable-based Internet service
[SOURCE: Washington Post (E01), AUTHOR: Ariana Eunjung Cha]
(http://washingtonpost.com/wp-dyn/articles/A14910-2000Sep25.html)

GERMAN DIPLOMATS RESPOND TO OPPOSITION TO DEUTSCHE TELEKOM'S ACQUISITION
PLANS
Issue: Merger
German Chancellor Gerhard Schroeder's foreign policy and security adviser,
Michael Steiner, wrote U.S. National Security Adviser Sandy Berger last week
to say that Berlin is committed to privatizing Deutsche Telekom and
increasing competition in telecommunications. He also expressed his concern
that passage of legislation introduced by U.S. Sen. Ernest Hollings (D-SC)
could harm trans-Atlantic trade relations. U.S. lawmakers are trying to torpedo
Deutsche Telekom's planned acquisition of VoiceStream and Powertel because
the German government still owns nearly 60% of the former telecommunications
monopoly. U.S. law forbids a company in which a foreign government owns more
than 25% from owning a phone license. But the U.S. Federal Communications
Commission can waive that restriction if it believes allowing the foreign
company to own a license is in the interest of U.S. consumers. But Sen.
Hollings wants to change that with legislation that would prevent regulators
from enacting a waiver. The Hollings proposal would therefore effectively
block Deutsche Telekom. The bill could come up in Congress this week as an
amendment to a House appropriations bill. Not many people give the Hollings
bill much chance of success. But there is a widespread feeling among
lawmakers in Washington that President Clinton should put more pressure
on foreign governments to honor World Trade Organization agreements.
[SOURCE: Wall Street Journal (A3), AUTHOR: William Boston And Jill Carroll]
(http://interactive.wsj.com/articles/SB969968976435242327.htm)

VOICESTREAM DEAL COULD CLEAR HURDLE
Issue: Merger
Deutsche Telekom, Germany's dominant phone carrier, has moved forward in
its campaign to gain approval for it $41 billion takeover of mobile
telephone company VoiceStream. Senate Majority Leader Trent Lott
(R-MS) urged lawmakers Tuesday to reject legislation, championed by
Sen. Ernest Hollings, (D-SC), that would effectively block the
transaction because Deutsche Telekom is majority-owned by the German
government. A U.S. law prevents a company that is more than 25% owned by
a foreign government from buying a U.S. phone license. But it allows
regulators to waive that restriction if they find the transfer to be in
the public interest. But several leading politicians, led by Hollings,
have pressed for legislation that would strip that waiver authority from
U.S. regulators, arguing the foreign governments have no business owning
U.S. phone companies. In 1997, the United States was among 70 countries that
signed a trade agreement to open telecom markets, pledging to let foreign
companies invest in domestic phone carriers.
[SOURCE: USAToday (10A), AUTHOR: Thor Valdmanis]
(http://www.usatoday.com/usatonline/20000927/2690968s.htm)

NOKIA, ERICSSON AND MOTOROLA JOIN TO DEVELOP GLOBAL MOBILE SERVICES
Issue: Wireless
Nokia has joined with Ericsson and Motorola to develop standards and
applications for the location-based services and applications used with
personal GIS systems and handheld devices. Location-based services allow
mobile phone users to find nearby restaurants, read bus timetables and track
down friends on their handsets. "There is a big demand for
location-sensitivity in networks, but currently there are no standardized
ways to do that," said Pekka Isosomppi, a Nokia spokesman. Applications
would include location traces for 911 calls or simply keeping track of
friends. "The handsets send off signals and, when you submit a search asking
if your friends are around town, you'll get a list of where they are," Mr.
Isosomppi said. The Location Interoperability Forum, or LIF, will offer
location-based services world-wide on wireless networks and terminals, Nokia
said.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: WSJ.COM News Roundup
(http://interactive.wsj.com/articles/SB969958402548777120.htm)
(Requires registration)

ANTITRUST

SUPREME COURT DECLINES TO HEAR THE MICROSOFT ANTITRUST CASE
Issue: Antitrust
The Supreme Court decided against an early review of the Microsoft
antitrust case, a decision that would delay a final judgment for as long as
two years. The Supreme Court's 8-1 ruling Tuesday is a setback for the
Justice Department and 19 states, which argued that the case was important
to the nation's economy and should be resolved quickly. The
ruling means the government's sweeping victory in U.S. District Court in
Washington DC earlier this year will be reviewed first by the federal
appeals court here, which ruled in Microsoft's favor in an earlier case.
Microsoft can now march into new markets without fear of being hampered by
the courts Justice Stephen Breyer, in the sole dissent, wrote that the case
"affects an important sector of the economy," one that changes rapidly and
where "speed in reaching a final decision may help create legal certainty."
"This buys Microsoft time," said Bill Whyman, an analyst with Precursor
Group here. It also means any remedy will be different from the breakup and
business restrictions ordered by Judge Jackson, "because the market
structure itself will be dramatically different two years from now."
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke And Rebecca
Buckman]
(http://interactive.wsj.com/articles/SB969977773591184101.htm)
(Requires subscription)
See Also:
MICROSOFT SCORES TACTICAL VICTORY IN ANTITRUST CASE
[SOURCE: New York Times (A1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2000/09/27/technology/27IMPA.html)
(requires registration)
SUPREME COURT WON'T EXPEDITE MICROSOFT APPEAL
[SOURCE: San Jose Mercury News, AUTHOR: David L. Wilson ]
(http://www.mercurycenter.com/svtech/news/top/docs/ms092700.htm)

INFRASTRUCTURE

NTT INTENDS TO LINK HOMES TO WEB WITH HIGH-SPEED FIBER
Issue: Infrastructure
Japan's Nippon Telegraph & Telephone (NTT) has disclosed plans for what it
calls the world's first widespread, high-speed Internet service delivered by
optical fiber directly into homes. NTT says it has built fiber networks deep
into every neighborhood in central Tokyo and Osaka, making it feasible to
extend fiber the final few hundred meters, or less in some cases, to homes.
The service marks a major push to bring Japanese Internet use up to U.S.
levels. Japan lags the U.S. in high-speed Internet access that allows people
to download data-heavy audio and video files. NTT is trying to leapfrog past
these technologies by connecting homes with the same optical fiber already
used world-wide as the backbone for computer networks. Running fiber to the
home has long been viewed as an ideal solution in theory but too expensive
in practice. Some rivals fear NTT may overwhelm potential competitors by
plowing money into cut-rate Internet services. "NTT could fortify its
position and preclude other people from coming in," says Lee Daniels,
president of Jupiter Telecommunications, Japan's largest cable operator.
[SOURCE: Wall Street Journal (A3), AUTHOR: Peter Landers]
(http://interactive.wsj.com/articles/SB969994547587631148.htm)
(Requires subscription)

THE DIGITAL HANDSHAKE: CONNECTING INTERNET BACKBONES
Issue: Infrastructure/Competition
The Federal Communications Commission's (FCC) Office of Plans and Policy
(OPP) today released the 32nd in its OPP Working Paper Series, entitled "The
Digital Handshake: Connecting Internet Backbones." The paper, authored by
Michael Kende, Director of Internet Policy Analysis in the Office of Plans
and Policy, examines the interconnection arrangements between Internet
backbone providers that lead to the universal connectivity that
characterizes the Internet. [settle down, class; the report is digital, so
there's plenty of copies for everyone] Since its commercialization in 1995,
the Internet has served as an example of a network industry in which
interconnection agreements are reached through commercial negotiations in a
"handshake," rather than a regulated, environment. This paper offers a
primer describing the existing Internet interconnection agreements - notably
peering arrangements - which have arisen in place of traditional regulation.
Issues covered include: Interconnection Agreements, Future Internet
Services, and International Interconnection. See a summary at the URL below
or get the full report at
(http://www.fcc.gov/Bureaus/OPP/working_papers/oppwp32.pdf).
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/OPP/News_Releases/2000/nrop0002.html)

TELEVISION

THE FUTURE OF THE INTERACTIVE TELEVISION SERVICES MARKETPLACE
Issue: Television
Wednesday, September 27, 2000 9:00 a.m. in 2322 Rayburn House Office Building
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a hearing on Wednesday, September 27, 2000 at 9:00 a.m. in 2322
Rayburn House Office Building. The hearing will be entitled: "The Future of
the Interactive Television Services Marketplace: What Should Consumers
Expect?" Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

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

MEDIA & SOCIETY
Major Studios Used Children To Test-Market Violent Films (NYT)
Studios to Curb Marketing Of R-Rated Films to Youth (NYT)
Banned Books Week (EPIC)

POLITICAL DISCOURSE
Let Them Eat Cable (WP)
On MTV, Gore Hits Hip Buttons and Dreams of Air Force One (NYT)

EDTECH
Teachers Question Critical Study of Classroom Computers (CyberTimes)

ECOMMERCE
On the Web, Price Tags Blur (WP)

MERGERS/ALLIANCES
Holding Out for 'Open Access' to Cable (WP)
German Diplomats Respond to Opposition To Deutsche
Telekom's Acquisition Plans (WSJ)
VoiceStream Deal Could Clear Hurdle (USA)
Nokia, Ericsson and Motorola Join To Develop Global
Mobile Services (WSJ)

ANTITRUST
Supreme Court Declines to Hear The Microsoft Antitrust Case (WSJ)

INFRASTRUCTURE
NTT Intends to Link Homes To Web With High-Speed Fiber (WSJ)
The Digital Handshake: Connecting Internet Backbones (FCC)

TELEVISION
The Future of the Interactive Television Services Marketplace (House)

MEDIA & SOCIETY

MAJOR STUDIOS USED CHILDREN TO TEST-MARKET VIOLENT FILMS
Issue: Media & Society
Movie studios have routinely used children under 17 (and as young as 9) to
test violent, R-rates movies. Jack Valenti, the trade association's
chairman, said a report by the Federal Trade Commission has prompted studios
to take "a fresh new look at the way we market films." R-rated films may
still be tested on kids, but they will have to be accompanied by an adult.
[Maybe the studios will supply the adults, too?] The details of the
marketing campaigns withheld from the Federal Trade Commission's are
contained in the supporting documents, which were obtained by The New York
Times. The practices include recruiting members of targeted audiences and
conducting test screenings months before a movie is released. For PG-13
movies which warn that violent content may be "inappropriate" for children
under 13, the promotion of the films are broadened to include children as
young as 4.
[SOURCE: New York Times (A1), AUTHOR: Doreen Carvajal]
(http://www.nytimes.com/2000/09/27/arts/27VIOL.html)
(requires registration)
See Also:
MOVIE MARKETING PLANS AIRED
[SOURCE: USAToday (4A), AUTHOR: Andy Seiler]
(http://www.usatoday.com/usatonline/20000927/2690906s.htm)

STUDIOS TO CURB MARKETING OF R-RATED FILMS TO YOUTH
Issue: Media & Society
Jack Valenti, president of the Motion Picture Association of America, said
at a news conference Tuesday that each of the major movie-making companies
had set a "goal of not inappropriately specifically targeting children in
its advertising of films rated R for violence." The executives are gearing
up for a Senate Commerce Committee hearing today that will likely include
some sharp questions from senators. The industry announced voluntary
efforts: 1) studios will not include children younger than 17 in focus
groups testing movies rated R for violence unless the children are
accompanied by a parent or guardian and 2) previews for such movies would no
longer be shown before G-rated films. Neither voluntary effort has an
enforcement mechanism. As executives from eight movie studios testify today,
additional limits on marketing may be announced. Eighty percent of adults
believe there is a connection between violence in entertainment and violent
conduct.
[SOURCE: New York Times (A15), AUTHOR: David Rosenbaum]
(http://www.nytimes.com/2000/09/27/arts/27VALE.html)
(requires registration)
See Also:
MARKETING VIOLENCE TO CHILDREN
Issue: Media & Society
The full committee hearing on Marketing Violence to Children II will be
broadcast Live on the Internet. To access the hearing go to the Commerce
Committee website at (http://commerce.senate.gov), or if computer is already
equipped with RealPlayer, go to (pnm://vrn1.webcasting.evoke.com
/basic/providers/senate/commerce.rm)
The hearing is scheduled for Wednesday, September 27, at 9:30 a.m. in room
253 of the Russell Senate Office Building. Senator John McCain (R-AZ),
Chairman of the committee, will preside.
Following is the tentative witness list (not necessarily in order of
appearance):
Mr. Rob Friedman, Vice Chairman, Motion Picture Group, Paramount; Mr. Jim
Gianopulos, President, Twentieth Century Fox; Mr. Mel Harris, President and
COO, Sony; Mr. Alan Horn, President and COO, Warner Brothers; Mr. Robert
Iger, President and COO, Disney, Miramax; Mr. Chris McGurk, Vice Chairman
and COO, MGM; Mr. Walter Parkes, Co-Head, Dreamworks; Ms. Stacy Snider,
Chairman, Universal.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-223.htm)

BANNED BOOKS WEEK
Issue: Media & Society
"Fish in the River of Knowledge", the Nineteenth Annual Banned Books Week
(http://www.ala.org/bbooks/index.html), will take place from September 23rd
through the 30th. The event highlights attempts to remove and ban books from
schools, public libraries, and bookstores and the need for vigilant
protection of free expression. The sponsor organizations have also put
together the top ten list of most challenged books in 1999 as well as the
hundred most challenged books of the decade.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

POLITICAL DISCOURSE

LET THEM EAT CABLE
Issue: Political Discourse
[Editorial] While the 13 local TV stations owned by General Electric, the
corporate parent of NBC, pocketed $23.5 million airing political ads between
January and July of this year, NBC's flagship broadcast channel is not going
to carry the first presidential debate. Rupert Murdoch's Fox stations, which
earned from $9.2 million political ads during the same period, will not be
carrying any of the Presidential debates. Both companies will instead air
the debates on their cable channels, which are available only to paying
subscribers and which reach far fewer voters. The Post chides the networks
for neglecting their obligation to improve public discourse. "The networks
have headed off attempts in Congress to make them join wireless telephone
companies in paying for the airwaves they occupy. In exchange for free
spectrum, the broadcasters have accepted that they must serve the public
interest." The Post concludes: "Congress may fairly wonder why it is giving
away the air to those who do not honor that deal."
[SOURCE: Washington Post (A22), AUTHOR: Washington Post Editorial Staff]
(http://www.washingtonpost.com/wp-dyn/articles/A24364-2000Sep26.html)

ON MTV, GORE HITS HIP BUTTONS AND DREAMS OF AIR FORCE ONE
Issue: Political Discourse
Less than half of those ages 18 to 24 said they planned to vote this year,
compared with 80 percent of older Americans. But Vice President Al Gore took
his message to this audience yesterday, taping an appearance at the
University of Michigan for MTV. Although he did not say much new, VP Gore
talked about his support for civil unions between homosexuals, his
opposition to the legalization of medical marijuana and his distaste for
misogynistic music. He also made references to Napster and "Smackdown!" the
World Wrestling Federation TV show. Any drama in the show came from the
students themselves as they personalized questions the Gore campaign usually
addresses in position papers: 1) A black student asked Mr. Gore about racial
profiling by telling how he was recently surrounded by six police cars while
driving with four black friends. 2) A gay man asked why his heterosexual
friends should be able to drive to Las Vegas and marry someone they barely
know when he cannot form a legal union with a longtime, committed partner.
3) A woman who opposes abortion rights asked about that issue by pointing
out that her friends sometimes use abortion as a form of birth control.
Answering a question about popular culture and the entertainment industry,
Gore said he does not support censorship, but he also did not hesitate to
offer his personal view that Americans should protest entertainment that
advocates homophobia, violence against women or racial discrimination. "I
don't go along with the notion that if material like that becomes widely
accepted and nobody thinks a second thought about it that there are no
consequences to it," he said. "I think that what we listen to and enjoy and
spread around in our culture does have an effect on us."
[SOURCE: New York Times (A16), AUTHOR: Kevin Sack]
(http://www.nytimes.com/2000/09/27/politics/27GORE.html)
(requires registration)

EDTECH

TEACHERS QUESTION CRITICAL STUDY OF CLASSROOM COMPUTERS
Issue: EdTech
a new study underwritten by the Alliance for Childhood -- "Fools Gold: A
Critical Look at Computers in Childhood" -- says there is not enough
research into the impact computers could have on the developing minds and
bodies of young children. "The reason we're calling for a time-out is we
think we need to get more information before we put a computer in front of
each kid," said Edward Miller, co-author of the study and an education
policy analyst based in Cambridge, Mass. "We don't think computers are
evil." But teachers are now questioning the report. "With some kids, it's a
way for them to get excited and learn," said Beth Lang who teaches second
and third grades at Lakewood Elementary School in Overland Park (KS). "Ten
years ago, our technology was 'Kids, when you finish your math lesson, go
and play a math game'" on the computer, said Candy Atwood, instructional
technology specialist for the Plano Independent School District in Texas.
"Our technology now is not a game. We are really at the point when our
computers are not used for babysitting anymore." The success of computers in
schools, teachers say, is based on how well teachers are trained to use it.
Judy Hamilton, chief executive of Classroom Connect, which offers
Internet-based curriculum and teacher training, said classroom computing is
too new to call for a time-out. "It's a step process," she said. "First you
have to give them the equipment. Then you have to train the teachers. We're
just at the beginning."
[SOURCE: CyberTimes, AUTHOR: Rebecca Weiner (rweiner( at )nytimes.com)]
(http://www.nytimes.com/2000/09/26/technology/27EDUCATION.html)
(requires registration)

ECOMMERCE

ON THE WEB, PRICE TAGS BLUR
Issue: Ecommerce
"Amazon was trying to figure out how much their loyal customers would pay,"
said Barrett Ladd, a retail analyst with Gomez Advisors. "And the customers
found out." Amazon.com is receiving backlash after experimenting with
"dynamic pricing," which gauges a shopper's desire, measures his means and
then charges accordingly. "Dynamic pricing is the new reality, and it's
going to be used by more and more retailers," said Vernon Keenan, a San
Francisco Internet consultant. "In the future, what you pay will be
determined by where you live and who you are. It's unfair, but that doesn't
mean it's not going to happen." Amazon says the pricing variations, which it
stopped as soon as the complaints began coming in from DVDTalk members, were
completely random. "It was done to determine consumer responses to different
discount levels," said spokesman Bill Curry. "This was a pure and simple
price test. This was not dynamic pricing. We don't do that and have no plans
ever to do that."
[SOURCE: Washington Post (A1), AUTHOR: David Streitfeld]
(http://washingtonpost.com/wp-dyn/articles/A15159-2000Sep25.html)

MERGERS/ALLIANCES

HOLDING OUR FOR 'OPEN ACCESS' TO CABLE
Issue: Broadband/Open Access
Lead by Richard Quigley, assistant city manager for Daytona Beach,
several municipalities in South Florida have refused to transfer Time
Warner's cable license to AOL as part of the companies' merger. Quigley,
and fellow neighboring regulators worry about what the creation of
AOL Time Warner means for the future of the Internet, and whether it
will open up its cable lines into homes to rival Internet providers.
They feel that AOL Time Warner non-binding agreements pledging "open
access," are not enough. The Florida dispute underscores how the
once little-know issue of open access has gained traction. In the past
two years, while both the Federal Communications Commission and Congress
have allowed the marketplace to resolve the issue, about a dozen cities
have sought to test their authority in the same way Daytona Beach has.
All the power to approve, deny or condition the merger lies with federal
authorities and the European Union, however. And a recent appeals court
decision in San Francisco affirmed the right of federal -- not
local -- authorities to regulate cable-based Internet service
[SOURCE: Washington Post (E01), AUTHOR: Ariana Eunjung Cha]
(http://washingtonpost.com/wp-dyn/articles/A14910-2000Sep25.html)

GERMAN DIPLOMATS RESPOND TO OPPOSITION TO DEUTSCHE TELEKOM'S ACQUISITION
PLANS
Issue: Merger
German Chancellor Gerhard Schroeder's foreign policy and security adviser,
Michael Steiner, wrote U.S. National Security Adviser Sandy Berger last week
to say that Berlin is committed to privatizing Deutsche Telekom and
increasing competition in telecommunications. He also expressed his concern
that passage of legislation introduced by U.S. Sen. Ernest Hollings (D-SC)
could harm trans-Atlantic trade relations. U.S. lawmakers are trying to torpedo
Deutsche Telekom's planned acquisition of VoiceStream and Powertel because
the German government still owns nearly 60% of the former telecommunications
monopoly. U.S. law forbids a company in which a foreign government owns more
than 25% from owning a phone license. But the U.S. Federal Communications
Commission can waive that restriction if it believes allowing the foreign
company to own a license is in the interest of U.S. consumers. But Sen.
Hollings wants to change that with legislation that would prevent regulators
from enacting a waiver. The Hollings proposal would therefore effectively
block Deutsche Telekom. The bill could come up in Congress this week as an
amendment to a House appropriations bill. Not many people give the Hollings
bill much chance of success. But there is a widespread feeling among
lawmakers in Washington that President Clinton should put more pressure
on foreign governments to honor World Trade Organization agreements.
[SOURCE: Wall Street Journal (A3), AUTHOR: William Boston And Jill Carroll]
(http://interactive.wsj.com/articles/SB969968976435242327.htm)

VOICESTREAM DEAL COULD CLEAR HURDLE
Issue: Merger
Deutsche Telekom, Germany's dominant phone carrier, has moved forward in
its campaign to gain approval for it $41 billion takeover of mobile
telephone company VoiceStream. Senate Majority Leader Trent Lott
(R-MS) urged lawmakers Tuesday to reject legislation, championed by
Sen. Ernest Hollings, (D-SC), that would effectively block the
transaction because Deutsche Telekom is majority-owned by the German
government. A U.S. law prevents a company that is more than 25% owned by
a foreign government from buying a U.S. phone license. But it allows
regulators to waive that restriction if they find the transfer to be in
the public interest. But several leading politicians, led by Hollings,
have pressed for legislation that would strip that waiver authority from
U.S. regulators, arguing the foreign governments have no business owning
U.S. phone companies. In 1997, the United States was among 70 countries that
signed a trade agreement to open telecom markets, pledging to let foreign
companies invest in domestic phone carriers.
[SOURCE: USAToday (10A), AUTHOR: Thor Valdmanis]
(http://www.usatoday.com/usatonline/20000927/2690968s.htm)

NOKIA, ERICSSON AND MOTOROLA JOIN TO DEVELOP GLOBAL MOBILE SERVICES
Issue: Wireless
Nokia has joined with Ericsson and Motorola to develop standards and
applications for the location-based services and applications used with
personal GIS systems and handheld devices. Location-based services allow
mobile phone users to find nearby restaurants, read bus timetables and track
down friends on their handsets. "There is a big demand for
location-sensitivity in networks, but currently there are no standardized
ways to do that," said Pekka Isosomppi, a Nokia spokesman. Applications
would include location traces for 911 calls or simply keeping track of
friends. "The handsets send off signals and, when you submit a search asking
if your friends are around town, you'll get a list of where they are," Mr.
Isosomppi said. The Location Interoperability Forum, or LIF, will offer
location-based services world-wide on wireless networks and terminals, Nokia
said.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: WSJ.COM News Roundup
(http://interactive.wsj.com/articles/SB969958402548777120.htm)
(Requires registration)

ANTITRUST

SUPREME COURT DECLINES TO HEAR THE MICROSOFT ANTITRUST CASE
Issue: Antitrust
The Supreme Court decided against an early review of the Microsoft
antitrust case, a decision that would delay a final judgment for as long as
two years. The Supreme Court's 8-1 ruling Tuesday is a setback for the
Justice Department and 19 states, which argued that the case was important
to the nation's economy and should be resolved quickly. The
ruling means the government's sweeping victory in U.S. District Court in
Washington DC earlier this year will be reviewed first by the federal
appeals court here, which ruled in Microsoft's favor in an earlier case.
Microsoft can now march into new markets without fear of being hampered by
the courts Justice Stephen Breyer, in the sole dissent, wrote that the case
"affects an important sector of the economy," one that changes rapidly and
where "speed in reaching a final decision may help create legal certainty."
"This buys Microsoft time," said Bill Whyman, an analyst with Precursor
Group here. It also means any remedy will be different from the breakup and
business restrictions ordered by Judge Jackson, "because the market
structure itself will be dramatically different two years from now."
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke And Rebecca
Buckman]
(http://interactive.wsj.com/articles/SB969977773591184101.htm)
(Requires subscription)
See Also:
MICROSOFT SCORES TACTICAL VICTORY IN ANTITRUST CASE
[SOURCE: New York Times (A1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2000/09/27/technology/27IMPA.html)
(requires registration)
SUPREME COURT WON'T EXPEDITE MICROSOFT APPEAL
[SOURCE: San Jose Mercury News, AUTHOR: David L. Wilson ]
(http://www.mercurycenter.com/svtech/news/top/docs/ms092700.htm)

INFRASTRUCTURE

NTT INTENDS TO LINK HOMES TO WEB WITH HIGH-SPEED FIBER
Issue: Infrastructure
Japan's Nippon Telegraph & Telephone (NTT) has disclosed plans for what it
calls the world's first widespread, high-speed Internet service delivered by
optical fiber directly into homes. NTT says it has built fiber networks deep
into every neighborhood in central Tokyo and Osaka, making it feasible to
extend fiber the final few hundred meters, or less in some cases, to homes.
The service marks a major push to bring Japanese Internet use up to U.S.
levels. Japan lags the U.S. in high-speed Internet access that allows people
to download data-heavy audio and video files. NTT is trying to leapfrog past
these technologies by connecting homes with the same optical fiber already
used world-wide as the backbone for computer networks. Running fiber to the
home has long been viewed as an ideal solution in theory but too expensive
in practice. Some rivals fear NTT may overwhelm potential competitors by
plowing money into cut-rate Internet services. "NTT could fortify its
position and preclude other people from coming in," says Lee Daniels,
president of Jupiter Telecommunications, Japan's largest cable operator.
[SOURCE: Wall Street Journal (A3), AUTHOR: Peter Landers]
(http://interactive.wsj.com/articles/SB969994547587631148.htm)
(Requires subscription)

THE DIGITAL HANDSHAKE: CONNECTING INTERNET BACKBONES
Issue: Infrastructure/Competition
The Federal Communications Commission's (FCC) Office of Plans and Policy
(OPP) today released the 32nd in its OPP Working Paper Series, entitled "The
Digital Handshake: Connecting Internet Backbones." The paper, authored by
Michael Kende, Director of Internet Policy Analysis in the Office of Plans
and Policy, examines the interconnection arrangements between Internet
backbone providers that lead to the universal connectivity that
characterizes the Internet. [settle down, class; the report is digital, so
there's plenty of copies for everyone] Since its commercialization in 1995,
the Internet has served as an example of a network industry in which
interconnection agreements are reached through commercial negotiations in a
"handshake," rather than a regulated, environment. This paper offers a
primer describing the existing Internet interconnection agreements - notably
peering arrangements - which have arisen in place of traditional regulation.
Issues covered include: Interconnection Agreements, Future Internet
Services, and International Interconnection. See a summary at the URL below
or get the full report at
(http://www.fcc.gov/Bureaus/OPP/working_papers/oppwp32.pdf).
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/OPP/News_Releases/2000/nrop0002.html)

TELEVISION

THE FUTURE OF THE INTERACTIVE TELEVISION SERVICES MARKETPLACE
Issue: Television
Wednesday, September 27, 2000 9:00 a.m. in 2322 Rayburn House Office Building
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a hearing on Wednesday, September 27, 2000 at 9:00 a.m. in 2322
Rayburn House Office Building. The hearing will be entitled: "The Future of
the Interactive Television Services Marketplace: What Should Consumers
Expect?" Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

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