September 2000

Communications-related Headlines for 9/11/2000

MEDIA & SOCIETY
Gore Takes Tough Stand on Violent Entertainment (NYT)

POLITICAL DISCOURSE
Important Questions Facing All of America This Election Year (SJM)
A Close Race Deserves Close Look at TV Coverage (USA)

MERGERS
AOL-Time Warner Rivals Preparing for Interactive TV Fight (NYT)

ECOMMERCE
Entertainment Web Sites Facing Failures and Cuts (NYT)
EU Antitrust Regulators List Concerns Over AOL, Time Warner,
EMI Deal (WSJ)

INTELLECTUAL PROPERTY
New E-Book Technology Helps Protect Copyrights (WSJ)
U.S. Copyright Office Rejects the Defense Offered by Napster,
Says Law Is Violated (WSJ)

LEGAL ISSUES
When the Judge Can't Really Judge (NYT)

WIRELESS
Cell Phones: Facts, Fiction, Frequency (FCC)

MEDIA & SOCIETY

GORE TAKES TOUGH STAND ON VIOLENT ENTERTAINMENT
Issue: Media & Entertainment
In an appeal to women voters in children, Vice President Gore said that if
the entertainment industry does not stop marketing violent films, recordings
and video games to children he and Sen Lieberman (D-CT) would propose
legislation or new regulatory authority allowing the federal government to
sanction the industry. With a nod to the First Amendment, VP Gore is saying
he would encourage the Federal Trade Commission to move against the industry
by using its power to prohibit false and deceptive advertising. Gore's
remarks come on the eve of the release of a trade commission report that is
expected to harshly criticize the entertainment industry for marketing
violent, adult-rated entertainment to young people. The report concludes
that despite voluntary rating and labeling systems adopted over the years,
the makers of films, recordings and video games routinely use marketing
strategies to entice young consumers into buying products that the
manufacturers themselves deem inappropriate. The commission study, which
relies on internal marketing documents provided by the industry, found that
the companies did this largely by placing advertising in publications and
television broadcasts that appeal to young people. Their will be a Senate
hearing on the report on Wednesday.
[SOURCE: New York Times (A1), AUTHOR: Kevin Sack]
(http://www.nytimes.com/2000/09/11/politics/11GORE.html)
(requires registration)
See Also:
MARKETING VIOLENCE TO CHILDREN
Senator John McCain (R-AZ), Chairman of the Committee on Commerce, Science,
and Transportation, and Senator Fritz Hollings (D-SC), Ranking Democrat,
today announced the witnesses for the Full Committee hearing on Marketing
Violence to Children. Members of the Committee will examine a report to be
released by the Federal Trade Commission that reviews self regulation and
industry practices in the motion picture, music recording and electronic
game industries.
The hearing is scheduled for Wednesday, September 13, at 9:30 a.m. in room
253 of the Russell Senate Office Building. Senator McCain will preside.
[See the URL below for the long witness list]
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-205.htm)

POLITICAL DISCOURSE

IMPORTANT QUESTIONS FACING ALL OF AMERICA THIS ELECTION YEAR
Issue: Political Discourse
Although you may hear politician using the word "technology" a lot this
political season, they'll only be talking about the small stuff, not what
matters most. In fact, most of the rhetoric is either sound candy without
plans or a play for constituent support. Dan Gillmor, technology columnist
for the San Jose Mercury, lists the technology issues that aren't talked
about, because they can't fit a 30 second soundbite: 1) Intellectual
property - the industry grip on copyright, the insanity of trademark
concerns, domain name allocations and a mismanaged patent system approving
virtually every tech application that crosses its desk. 2) Political
Authority - "Digital technology is turning borders into suggestions, and
moving power away from governments to corporations, non-governmental
organizations and individuals." 3) Capital - Current industrial policies
favor Internet merchants over Main Street merchants, eroding local tax
bases. 4) "McWorld" - The preponderance of an American-flavored,
English-based Internet mocks the value of locals culture and cuisine. 5)
Economic dislocation - An economy that values minds over muscles can be
displaced by a smarter, better educated economy. With entrepreneurial
strength and educational achievement moving forward in other parts of the
world, America could see itself become irrelevant in a digital world. 6) The
control of community assets - Remember when Congress gave the _public's
airwaves_ to broadcasters? Remember how the broadcasters fought and nearly
crushed community low-powered radio stations to protect "their" resource? 7)
Checks on the Economy - Antitrust enforcement promotes competition. But it's
effectively under attack. What will be the final social product of the rash
of mergers in the communications/technology industry?
[SOURCE: San Jose Mercury, AUTHOR: Dan Gillmor]
(http://www.mercurycenter.com/svtech/columns/front/docs/dg091000.htm)

A CLOSE RACE DESERVES CLOSE LOOK AT TV COVERAGE
Issue: Political Discourse
From now until the election, USAToday will join with researchers the
Brookings Institution and the Center for Media and Public Affairs to analyze
major network television network coverage of the presidential contest. They
will be looking at whether TV helps voters prepare to cast an informed
ballot. One question will be, how much coverage is there? TV reporting of
the presidential race dropped 45% from 1992 to 1996. So far, the Center for
Media and Public Affairs found that network campaign coverage has fallen 33%
from the same period in 1996. In addition to measuring the amount of
content, USAToday will also look at the TV's coverage of the presidential
race with an eye toward what content?; how negative?; and, how objective?
[SOURCE: USAToday (18A), AUTHOR: Stephen Hess]
(http://www.usatoday.com/usatonline/20000911/2629145s.htm)

MERGERS

AOL-TIME WARNER RIVALS PREPARING FOR INTERACTIVE TV FIGHT
Issue: Mergers
"I think there are $10 billion to $15 billion in incremental profit from
interactive television," said Steven Heyer, the president of Time Warner's
Turner Broadcasting unit. "The traditional relationships between cable
operators, programming networks and set-top box manufacturers is being
reinvented and there is no equilibrium with how the profits will be shared."
Now, as part of the government's review of the America Online/Time Warner
merger, the battle over interactive television is receiving more attention.
Consumer groups and competitors fear that the combined AOL Time Warner,
which would run television networks, own cable systems and control nearly
half of the consumer market for Internet access, would be so powerful it
could stifle other would-be providers of interactive television. Early
examples of interactive television have let viewers chat online while
watching episodes of "Survivor," use their remote controls to play along
with "Wheel of Fortune," buy the CD of whatever band is playing on "The
Tonight Show," check stock quotes while watching CNBC and order a $1 coupon
for Clorox Bleach while watching a commercial.
[SOURCE: New York Times (C1), AUTHOR: Saul Hansell]
(http://www.nytimes.com/2000/09/11/technology/11TUBE.html)
(requires registration)

EU ANTITRUST REGULATORS LIST CONCERNS OVER AOL, TIME WARNER, EMI DEAL
Issue: Merger
To appease European competition regulators, AOL and Time Warner has offered
a raft of business-conduct promises and pledged to distance itself from
German media giant Bertelsmann AG, and has also promised not to discriminate
against third-party music companies that would like to distribute their
products through AOL. But EMI Group PLC has yet to submit formal proposals
to salvage its troubled plans to link up with Time Warner's music business,
according to the European Commission. EMI had so far proposed nothing
concrete to alleviate antitrust concerns over its planned joint venture with
Time Warner, according to the Commission. The deal would reduce the pool of
major recording labels from five to four and exacerbate the problem of
"collective dominance" in the music business. The commission's regulators
are worried that after combining a major content company with an online
powerhouse, Time Warner and AOL would be able to cut out their competitors
from their sweeping distribution channels. The commission will rule on both
mergers in early October.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Philip Shishkin]
(http://interactive.wsj.com/articles/SB968619445392004422.htm)
(Requires subscription)

ECOMMERCE

ENTERTAINMENT WEB SITES FACING FAILURES AND CUTS
Issue: Ecommerce
Shockwave.com, one of the most frequently visited entertainment sites on the
World Wide Web, announced last week that it will be laying off 15 percent of
its workforce. Then Pop.com, a project of some of Hollywood's most famous
names, announced it was shutting down before it ever opened for business,
causing concern about the online future of entertainment sector. This year,
the industry discovered the difficulty of selling enough online advertising
to defray the unexpectedly high costs of producing and maintaining an
entertainment-only site. It is also discovering that Web surfers may be more
interested in entertainment that exploits the medium's inherent
interactivity, like games and virtual communities, than in traditional
entertainment fair. "In my view, the Web is not about repurposing content
that works in other media," said Lawrence Levy, Shockwave's chairman. "It's
about leveraging the powers of this medium, and that's what we're focusing
on now. To me, the fact that we are having this kind of shakeout is no
surprise at all."
[SOURCE: New York Times (C17), AUTHOR: Rick Lyman]
(http://www.nytimes.com/2000/09/11/technology/11POP.html)
(requires registration)

INTELLECTUAL PROPERTY

NEW E-BOOK TECHNOLOGY HELPS PROTECT COPYRIGHTS
Issue: Intellectual Property
Behold the VitalBook, a book that demands payment while being read and self
destructs if not paid proper homage. With file-sharing, Napster-like
technologies threatening traditional copyright guarantees, it was only a
matter of time before someone would figure out how to use the same
technologies to protect intellectual property. In this case a new e-book
isn't actually purchased, it's rented. "We totally blow away the current
book-distribution model," says Robert T. Watkins, the founder and president
of Vital Source Technologies. A dentist by training, Dr Watkins persuaded
some big dental-textbook publishers to give his e-book approach a try. The
VitalBook is a system for storing books on DVDs. The disk is portable, and
schools can tailor it to fit their program, including course notes and video
clips, all indexed by a powerful search engine. But,
more importantly, students no longer purchase books, they become licensees
of a recurring yearly fee. The associated technology (and new phrase of the
week) is "digital rights management" or DRM. DRM technology promises that
publishers of books, music and movies will not be exposed to copying, while
guaranteeing that only someone who has paid for material can access it. DRM
technologies also make it possible to affix new charges to the written word.
Take the concept of "pay-per-view" and now apply it to books and music.
[SOURCE: Wall Street Journal (B1), AUTHOR: Thomas E. Weber]
(http://interactive.wsj.com/articles/SB968628058279978062.htm)
(Requires subscription)

U.S. COPYRIGHT OFFICE REJECTS THE DEFENSE OFFERED BY NAPSTER, SAYS LAW IS
VIOLATED
Issue: Intellectual Property
Napster received a stunning blow in a ruling by the federal government that
said the company isn't protected under a significant copyright law. The
U.S. Copyright Office, in a brief to the 9th U.S. Circuit Court of Appeals,
said Napster has "no possible defense" against claims by the recording
industry that it facilitates widespread copyright infringement. Thus, the
agency sided with U.S. District Court Judge Marylin Hall Patel, who in July
ruled for the industry, finding Napster contributing to copyright
infringement in violation of the 1992 Audio Home Recording Act. Napster
cites the same law, and claims that the Audio Home Recording Act provides
its users with immunity from liability for copyright. "The District Court
was correct to reject that defense," government lawyers wrote. Napster
allows 22 million users to swap music online. The same court spared Napster
from an order that would have shut down the site pending the outcome of the
trial. In issuing the stay, the panel said "substantial questions" had been
raised about the merits and form of the injunction.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Associated Press
(http://interactive.wsj.com/articles/SB968620586145434647.htm)
(Requires subscription)

LEGAL ISSUES

WHEN THE JUDGE CAN'T REALLY JUDGE
Issue: Legal Issues
As part of its appeal in the antitrust case, Microsoft has suggested that
Judge Thomas Penfield Jackson was unable to comprehend the complex
technological issues at stake. The state of Maryland is considering whether
their should be a special court for high-tech trials. "The idea of it is to
have a judge who tries nothing but business and technology cases," said
Wilbur D. Preston Jr., chairman of the Maryland study group, which is known
as the Business and Technology Division Task Force. Its report is scheduled
for Dec. 1. [There's much more at the URL below]
[SOURCE: New York Times (C4), AUTHOR: Michael Brick]
(http://www.nytimes.com/2000/09/11/business/11JUDG.html)
(requires registration)

WIRELESS

CELL PHONES: FACTS, FICTION, FREQUENCY
Issue: Wireless
A new brochure from the Federal Communications Commission. Cell phones, or
more accurately, wireless phones, have received a great deal of attention
lately. Here are some Facts you should know, Fiction you

Communications-related Headlines for 9/8/2000

INTERNET
Assessing Linking Liability (NYT)

INTELLECTUAL PROPERTY
Proposed Ruling Could Limit Tapes Of TV Broadcasts (USA)

DIGITAL DIVIDE
Cisco/Sun Academy Offers 2nd Chance at Tech Career (SJM)

MERGERS
Nextel In Merger Talks With AT&T Unit (WP)

SPEECH
Chairman Kennard On Foreign Investment In The Us Telecommunications
Market (FCC)

INTERNET

Assessing Linking Liability
ACCESSING LINKING LIABILITY
Issue: Internet
Judge Lewis A. Kaplan of the U.S. District Court for the Southern District
ruled that a link can be bad or good -- depending on whether the linker's
intent is laudable or not in his August 17th decision regarding the highly
publicized DeCSS case, which pitted eight movie studios against Eric Corley,
who runs "2600: The Hacker Quarterly." If Judge Kaplan's ruling survives
appeal it could serve as an important guiding light for other judges, said
Dan L. Burk, an Internet law scholar and professor at the University of
Minnesota's law school. In "DeCSS" the movie studios sued Corley to stop him
from posting or linking to hundreds of sites carrying a piece of software -
DeCSS - which the studios claim allows users to decode DVDs. They claimed
the software code opens the door to copying and unauthorized viewing of
movies. In his ruling, Judge Kaplan said there may be no injunction against,
nor liability for, linking to a site containing content considered illegal
under the Digital Millennium Copyright Act unless it can be proven by clear
and convincing evidence that those responsible for the link (1) knew at the
relevant time that the offending material was on the linked-to site; (2)
knew that the offending material may not be legally offered, and (3) created
or maintained the link "for the purpose" of disseminating that illegal
technology. A "strong requirement of that forbidden purpose is an essential
prerequisite to any liability for linking," Judge Kaplan wrote. Kaplan's
views on linking are troubling to at least some experts in Internet law.
Eugene Volokh, a law professor at UCLA's law school, said that the history
of the First Amendment shows that legal rules proscribing speech on the
basis of the speaker's intent may seem promising, but in practice are often
not sufficiently protective of speech. Mark Lemley, an intellectual property
expert who teaches at the University of California at Berkeley's law school,
said another problem with Judge Kaplan's legal standard on linking is that
it is intrusive. It subjects "a whole bunch of people to potential liability
and inquiries about why they did this thing," he said. He added that the
ruling will encourage intellectual property owners to file more cases
against linkers and issue "cease and desist" letters demanding that links be
removed.
[Source: New York Times (Cyber Law Journal), Author: Carl S. Kaplan]
http://www.nytimes.com/2000/09/08/technology/08CYBERLAW.html
(registration required)
INTELLECTUAL PROPERTY

PROPOSED RULING COULD LIMIT TAPES OF TV BROADCASTS
Issue:
Claiming they have little choice than to honor copy-protection rights, the
Federal Communications Commission is expected to make a ruling that would
limit consumers' ability to make copies of cable TV programs in the emerging
digital world. Hollywood has vowed not to release movies over digital cable
TV if it doesn't get safeguards. The ruling could impact at least 230,000
consumers who paid up to $10,000 for digital TV sets with high-definition
pictures. Electronics manufacturers and retailers, however, are opposed to
any constraints on what they consider consumers' time-honored rights, with
some even saying they won't make the boxes if such requirements are adopted.
Over the next decade, more consumers are expected to switch to digital
gadgets to watch and record shows. Today, movie studios have placed few
limits on consumers' freedom to record shows on analog VCRs because the
videocassettes are of mediocre quality and cannot be easily disseminated.
[SOURCE: USAToday (1B), AUTHOR: Paul Davidson]
(http://www.usatoday.com/usatonline/20000908/2625446s.htm)

DIGITAL DIVIDE

CISCO/SUN ACADEMY OFFERS 2ND CHANCE AT TECH CAREER
Issue:
A free program of Cisco/Sun Academy, targeted at low-income and out-of-work
residents of Menlo Park and East Palo Alto, is offering 60 adults in Menlo
Park, California a chance at a tech career. The program, targeted at
low-income and out-of-work residents of the two cities, is equipping adults
with the skill needed to navigate the high-tech workplace. Sun Microsystems
Inc. has contributed $50,000 in cash and nearly $115,000 in equipment into
the nine-month program, and Cisco Systems Inc. added $120,000 in cash and
$80,000 in equipment. The first class enrolled in the academy will graduate
in November. The second class started last week, and a third could open as
soon as January. The program condenses 2 1/2 years of college courses into
nine months. Attendance is mandatory, homework is piled on and the course
work is complex. The academy's graduates are on their way to understanding
the computer coding languages and processes that could take college students
and professionals years to master. Graduates are likely to become computer
programmers certified either through Sun or Cisco. "I used to go to college
in Sacramento until I ran out of money and moved back to Silicon Valley,"
said one student who made about $10,000 a year washing windows. "I'll be
making six times more money than before. This program has also given me
direction, focus and a tangible goal." "This is all very difficult
technology," said Larry Hannel, 51, of San Carlos. "I threw myself into this
with no knowledge of programming. It's like learning Japanese with a Korean
accent. But it is exciting."
[SOURCE: San Jose Mercury News, AUTHOR: Eric R. Drudis]
(http://www.mercurycenter.com/svtech/news/front/docs/suncis090800.htm)

MERGERS

NEXTEL IN MERGER TALKS WITH AT&T UNIT
Issue: Merger
Nextel Communications, the national wireless company, is in discussions with
AT&T Wireless about a merger that would create a $100 billion enterprise
with about 18 million customers in markets across the country. Nextel, which
is in danger of exhausting its limited rights to the airwaves, would gain an
enormous partner with the deal. But legal experts said an AT&T-Nextel
combination could encounter resistance at the antitrust division of the
Department of Justice, which has recently shown willingness to challenge
major telecommunications mergers. Nextel and AT&T now compete head to head
in virtually every major market. It raises some fairly obvious horizontal
overlap issues in wireless," said Stephen Axinn, a prominent New York
antitrust expert who was brought in by the Justice Department to review
WorldCom Inc.'s aborted takeover of Sprint Corp Today, Nextel is the last
remaining independent national wireless company.
[SOURCE: Washington Post (E1), AUTHOR: Peter S. Goodman]
(http://www.washingtonpost.com/wp-dyn/articles/A32258-2000Sep7.html)

SPEECH

CHAIRMAN KENNARD ON FOREIGN INVESTMENT IN THE US TELECOMMUNICATIONS MARKET
Issue: Mergers/International
(Speech) Yesterday, Federal Communication Commission Chairman William
Kennard spoke before the United States House of Representatives Committee on
Commerce Subcommittee on Telecommunications, Trade and Consumer Protection
about some of the issues raised by foreign investment in the United States
telecommunications market. The Chairman assured congress that the commission
would not prejudge any application that comes before it. He also told the
committee that Commission policies provide for a rigorous case-by-case
review of foreign ownership with sufficient flexibility to address the
particular competitive concerns raised by individual transactions.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/2000/stwek071.html)

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

Communications-related Headlines for 9/8/2000

INTERNET
Assessing Linking Liability (NYT)

INTELLECTUAL PROPERTY
Proposed Ruling Could Limit Tapes Of TV Broadcasts (USA)

DIGITAL DIVIDE
Cisco/Sun Academy Offers 2nd Chance at Tech Career (SJM)

MERGERS
Nextel In Merger Talks With AT&T Unit (WP)

SPEECH
Chairman Kennard On Foreign Investment In The Us Telecommunications
Market (FCC)

INTERNET

Assessing Linking Liability
ACCESSING LINKING LIABILITY
Issue: Internet
Judge Lewis A. Kaplan of the U.S. District Court for the Southern District
ruled that a link can be bad or good -- depending on whether the linker's
intent is laudable or not in his August 17th decision regarding the highly
publicized DeCSS case, which pitted eight movie studios against Eric Corley,
who runs "2600: The Hacker Quarterly." If Judge Kaplan's ruling survives
appeal it could serve as an important guiding light for other judges, said
Dan L. Burk, an Internet law scholar and professor at the University of
Minnesota's law school. In "DeCSS" the movie studios sued Corley to stop him
from posting or linking to hundreds of sites carrying a piece of software -
DeCSS - which the studios claim allows users to decode DVDs. They claimed
the software code opens the door to copying and unauthorized viewing of
movies. In his ruling, Judge Kaplan said there may be no injunction against,
nor liability for, linking to a site containing content considered illegal
under the Digital Millennium Copyright Act unless it can be proven by clear
and convincing evidence that those responsible for the link (1) knew at the
relevant time that the offending material was on the linked-to site; (2)
knew that the offending material may not be legally offered, and (3) created
or maintained the link "for the purpose" of disseminating that illegal
technology. A "strong requirement of that forbidden purpose is an essential
prerequisite to any liability for linking," Judge Kaplan wrote. Kaplan's
views on linking are troubling to at least some experts in Internet law.
Eugene Volokh, a law professor at UCLA's law school, said that the history
of the First Amendment shows that legal rules proscribing speech on the
basis of the speaker's intent may seem promising, but in practice are often
not sufficiently protective of speech. Mark Lemley, an intellectual property
expert who teaches at the University of California at Berkeley's law school,
said another problem with Judge Kaplan's legal standard on linking is that
it is intrusive. It subjects "a whole bunch of people to potential liability
and inquiries about why they did this thing," he said. He added that the
ruling will encourage intellectual property owners to file more cases
against linkers and issue "cease and desist" letters demanding that links be
removed.
[Source: New York Times (Cyber Law Journal), Author: Carl S. Kaplan]
http://www.nytimes.com/2000/09/08/technology/08CYBERLAW.html
(registration required)
INTELLECTUAL PROPERTY

PROPOSED RULING COULD LIMIT TAPES OF TV BROADCASTS
Issue:
Claiming they have little choice than to honor copy-protection rights, the
Federal Communications Commission is expected to make a ruling that would
limit consumers' ability to make copies of cable TV programs in the emerging
digital world. Hollywood has vowed not to release movies over digital cable
TV if it doesn't get safeguards. The ruling could impact at least 230,000
consumers who paid up to $10,000 for digital TV sets with high-definition
pictures. Electronics manufacturers and retailers, however, are opposed to
any constraints on what they consider consumers' time-honored rights, with
some even saying they won't make the boxes if such requirements are adopted.
Over the next decade, more consumers are expected to switch to digital
gadgets to watch and record shows. Today, movie studios have placed few
limits on consumers' freedom to record shows on analog VCRs because the
videocassettes are of mediocre quality and cannot be easily disseminated.
[SOURCE: USAToday (1B), AUTHOR: Paul Davidson]
(http://www.usatoday.com/usatonline/20000908/2625446s.htm)

DIGITAL DIVIDE

CISCO/SUN ACADEMY OFFERS 2ND CHANCE AT TECH CAREER
Issue:
A free program of Cisco/Sun Academy, targeted at low-income and out-of-work
residents of Menlo Park and East Palo Alto, is offering 60 adults in Menlo
Park, California a chance at a tech career. The program, targeted at
low-income and out-of-work residents of the two cities, is equipping adults
with the skill needed to navigate the high-tech workplace. Sun Microsystems
Inc. has contributed $50,000 in cash and nearly $115,000 in equipment into
the nine-month program, and Cisco Systems Inc. added $120,000 in cash and
$80,000 in equipment. The first class enrolled in the academy will graduate
in November. The second class started last week, and a third could open as
soon as January. The program condenses 2 1/2 years of college courses into
nine months. Attendance is mandatory, homework is piled on and the course
work is complex. The academy's graduates are on their way to understanding
the computer coding languages and processes that could take college students
and professionals years to master. Graduates are likely to become computer
programmers certified either through Sun or Cisco. "I used to go to college
in Sacramento until I ran out of money and moved back to Silicon Valley,"
said one student who made about $10,000 a year washing windows. "I'll be
making six times more money than before. This program has also given me
direction, focus and a tangible goal." "This is all very difficult
technology," said Larry Hannel, 51, of San Carlos. "I threw myself into this
with no knowledge of programming. It's like learning Japanese with a Korean
accent. But it is exciting."
[SOURCE: San Jose Mercury News, AUTHOR: Eric R. Drudis]
(http://www.mercurycenter.com/svtech/news/front/docs/suncis090800.htm)

MERGERS

NEXTEL IN MERGER TALKS WITH AT&T UNIT
Issue: Merger
Nextel Communications, the national wireless company, is in discussions with
AT&T Wireless about a merger that would create a $100 billion enterprise
with about 18 million customers in markets across the country. Nextel, which
is in danger of exhausting its limited rights to the airwaves, would gain an
enormous partner with the deal. But legal experts said an AT&T-Nextel
combination could encounter resistance at the antitrust division of the
Department of Justice, which has recently shown willingness to challenge
major telecommunications mergers. Nextel and AT&T now compete head to head
in virtually every major market. It raises some fairly obvious horizontal
overlap issues in wireless," said Stephen Axinn, a prominent New York
antitrust expert who was brought in by the Justice Department to review
WorldCom Inc.'s aborted takeover of Sprint Corp Today, Nextel is the last
remaining independent national wireless company.
[SOURCE: Washington Post (E1), AUTHOR: Peter S. Goodman]
(http://www.washingtonpost.com/wp-dyn/articles/A32258-2000Sep7.html)

SPEECH

CHAIRMAN KENNARD ON FOREIGN INVESTMENT IN THE US TELECOMMUNICATIONS MARKET
Issue: Mergers/International
(Speech) Yesterday, Federal Communication Commission Chairman William
Kennard spoke before the United States House of Representatives Committee on
Commerce Subcommittee on Telecommunications, Trade and Consumer Protection
about some of the issues raised by foreign investment in the United States
telecommunications market. The Chairman assured congress that the commission
would not prejudge any application that comes before it. He also told the
committee that Commission policies provide for a rigorous case-by-case
review of foreign ownership with sufficient flexibility to address the
particular competitive concerns raised by individual transactions.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/2000/stwek071.html)

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

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internally and externally -- is encouraged if it includes this message.

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

The Benton Foundation's Communications Policy Program (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone does
not represent the tone of the original articles. Headlines are compiled by
Kevin Taglang (kevint( at )benton.org) and Rachel Anderson (rachel( at )benton.org) --
we welcome your comments.

Communications-related Headlines for 9/7/2000

EDTECH
Online Learning Picks Up Pace (USA)
Teachers Get A Taste Of High-Tech World (SJM)

PRIVACY
Carnivore Debate Centers on FBI Trustworthiness (WP)

MERGERS/ACQUISITIONS
U.S. Justice Department Approves Deutsche Telekom's VoiceStream Bid
(WSJ)
Time Warner to Buy Africana.com Site (WSJ)
No Concessions In AOL Merger (NYT)

INTELLECTUAL PROPERTY
Recording Giant Wins Ruling Over Web Site (WP)

WIRELESS
AOL in Talks with Several Carriers (NYT)

EDTECH

ONLINE LEARNING PICKS UP PACE
Issue: Distance Learning
USA TODAY is following the progress of Florida High School (FHS), a virtual
school that offers online curriculum to its students as well as 37
ninth-graders participating from Daniel Jenkins Academy in Haines City, Fla.
The students from Daniel Jenkins Academy have enrolled in a program that
combines the social and extracurricular activities of traditional high
school with online curriculum. Students come to Jenkins daily, where they
spend much of their time together in a classroom/lab with two facilitators,
who help them manage their online courses through FHS. At various times
during the day, groups of those Jenkins students are bused to nearby Haines
City High School, where they take part in sports, music, drama and other
club activities. FHS courses include a two or three hour online orientation
that must be completed before students can gain access to courses. Some
classes also offer an initial unit designed to help students adapt to their
self-paced education curriculum -- a task that can be awkward for many young
students.
[SOURCE: USAToday (11D), AUTHOR: Karen Thomas]
(http://www.usatoday.com/usatonline/20000907/2620126s.htm)

TEACHERS GET A TASTE OF HIGH-TECH WORLD
Issue: Edtech
A Bay Area program, IISME (Industry Initiatives for Science and Math
Education), gives classroom teachers the opportunity to experience
day-to-day work in the tech industry. IISME places teachers in summer jobs
in Silicon Valley, where they can see the real world applications of the
skills and subject matter they teach. Participants of this summer's program
said one thing they learned was that high-tech workers are given the tools,
training and support needed to do their jobs. Many were also impressed by
the corporate collaboration they witnessed at Silicon Valley workplaces.
"You meet together and talk about the goal. Then everyone goes to their
cubicle to do their part. It's like a jigsaw puzzle. If you don't have your
piece done on time . . . '' said Susan Diaz, a computer teacher at
Sunnyvale Middle School.
[SOURCE: San Jose Mercury News, AUTHOR: Joanne Jacobs]
(http://www.mercurycenter.com/svtech/columns/front/docs/jj090700.htm)

PRIVACY

CARNIVORE DEBATE CENTERS ON FBI TRUSTWORTHINESS
Issue: Privacy/Security
At a hearing on Capitol Hill yesterday, the philosophical and technical
questions surrounding Carnivore, the FBI's controversial e-mail-sniffing
tool, came down to the issue of trust. Can the FBI and the government be
trusted to limit the use of the online wiretap tool to capturing spies,
hackers and terrorists while protecting the privacy of law-abiding
Americans? Or is another party the proper authority. The FBI's Donald M.
Kerr argued before the Senate Judiciary Committee yesterday that the agency
has used the system only about 25 times in the past two years and in "every
case and at all times" with the permission of the courts. "The FBI cannot
and does not 'snoop,'" said Kerr, assistant director of the agency.
Representatives of the Center for Democracy and Technology, a policy group
based in Washington, made an interesting suggestion. The CDT representatives
suggested that Internet Service Providers such as Microsoft's MSN or America
Online be put in charge of administering the system, because of the high
potential for government abuse. Chairman Orrin G. Hatch (R-Utah) and Vint
Cerf, an Internet founding father who was selected to serve as an unbiased
technical adviser on the Senate panel, were quick with criticism of the
suggestion. Hatch said the proposal "strikes me as alarming, quite frankly."
Cerf believed that aside from the personal privacy issues raised by the
suggestion there existed also the possibility of evidence corruption. "I
have a feeling," he said, "that the ISP geeks would be less familiar with
restraints than the FBI gentlemen." Attorney General Janet Reno plans to
award a university contract to study Carnivore by Sept. 25 and to issue a
report by Dec. 8.
[SOURCE: Washington Post (E3), AUTHOR: Ariana Eunjung Cha]
(http://www.washingtonpost.com/wp-dyn/articles/A25183-2000Sep6.html)
See Also
WEB GURU CERF DEFENDS FBI'S USE OF CARNIVORE
[SOURCE: Wall Street Journal (B8), AUTHOR: Ted Bridis]
(http://interactive.wsj.com/articles/SB968280823274189422.htm)
(Requires subscription)

MERGERS/ACQUISITIONS

U.S. JUSTICE DEPARTMENT APPROVES DEUTSCHE TELEKOM'S VOICESTREAM BID
Issue: Merger
The proposed merger of Deutsche Telekom and VoiceStream Wireless is nearly
complete, after the U.S. Justice Department approved the takeover by
default. The review period lapsed without opposition. But the transaction is
still to be approved by the Federal Communications Commission and the
Committee on Foreign Investment in the United States, and also by
VoiceStream shareholders. When Deutsche Telekom, Europe's biggest telephone
company, agreed to acquire 100% of VoiceStream for about $50 billion in cash
and stock in late July, a group of U.S. congressmen voiced its opposition
against the deal, mainly on the grounds that Deutsche Telekom is 58%-owned
by the German government. The senators urged the FCC to consider
national-security implications of any foreign acquisition of a U.S.
telecommunications firm. If the deal sails through, the German government's
stake would be reduced to 45%. But the lawmakers, with the quiet support of
several large U.S. telecom companies, are pushing legislation that would bar
any company that is 25% or more owned by a foreign government from acquiring
a U.S telecom company.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: WSJ.COM Roundup
(http://interactive.wsj.com/articles/SB968321872331479735.htm)
(Requires subscription)

TIME WARNER TO BUY AFRICANA.COM SITE
Issue: Merger
Earlier this year, Harvard University Prof. Henry Louis "Skip" Gates Jr.
predicted that his Web site, Africana.com, would become the dominant portal
for blacks worldwide. Although he is giving up its independence, Prof. Gates
has taken a major step toward achieving his goal by selling Africana.com to
Time Warner, a move that is poised to raise eyebrows at Harvard and
elsewhere in academia. Harvard and other higher education institutions are
struggling to balance scholarly pursuits with the entrepreneurialism of
Internet-inspired faculty. Time Warner hopes to attract more black
subscribers to America Online after the proposed AOL-Time Warner merger.
AOL-Time Warner has interests in an array of black-oriented Web sites,
including NetNoir.com and Volume.com, a site under development by Home Box
Office, a unit of Time Warner. Although Africana.com isn't the largest black
portal, Time Warner officials say Mr. Gates's site holds a unique niche
because of its educational bent and high-brow columnists -- many of them
courtesy of Mr. Gates's platinum Rolodex. A source familiar with the
negotiations said the price was at least $10 million, and Prof. Gates could
reap at least $1 million in the transaction, a noteworthy boon for an
educator who asserted earlier this year that he didn't expect to get rich
off his Internet efforts. He declined to comment on this matter.
[SOURCE: Wall Street Journal (B1), AUTHOR: Daniel Golden]
(http://interactive.wsj.com/articles/SB968282511599715727.htm)
(Requires subscription)

NO CONCESSIONS IN AOL MERGER
Issue: Merger
Executives of Time Warner and America Online do not plan to offer any
concessions to clear their proposed merger plans when they meet regulators
of the European Commission, the administrative arm of the European Union.
The European Commission has sent the two companies a 45-page statement of
objections, arguing that the merger in its current form would allow the
companies to dominate the online distribution of entertainment and of music,
in particular. European concern has been magnified in Time Warner's separate
plan to merge its music business into a joint venture with the EMI Group of
Britain, the big music distributor. In an all-day hearing today, also in
private, Time Warner and EMI executives tried to convince officials that the
deal would be beneficial despite reducing the number of major music
distributors to four from five. The European Commission can block mergers
between companies that generate European sales of more than 250 million
euros a year, currently $217 million. On many occasions, including mergers
between two American companies, officials have used their power to force
companies into divestitures or changes in their practices. The commission's
deadline to reach a final decision on Time Warner's deal with EMI is Oct.
16, and on its merger with America Online, Oct. 24. The companies have to
submit proposed remedies at least one month before then.
[SOURCE: New York Times (C9), AUTHOR: Edmund L. Andrews]
(http://www.nytimes.com/2000/09/07/technology/07ONLI.html)
(requires registration)

INTELLECTUAL PROPERTY

RECORDING GIANT WINS RULING OVER WEB SITE
Issue: Intellectual Property
Yesterday, U.S. District Judge Jed S. Rakoff ruled that MP3.com, an online
music site, willfully violated copyright laws. The ruling clears the way for
a potentially crippling damage award and provides the strongest sign to date
that major record labels are winning control of music commerce on the
Internet. Judge Rakoff said he would fine the company $25,000 for each CD
it copied from, a punishment that could yield a total fine of as much as
$250 million. MP3 officials had argued that anything more than $500 per
violation would be a "death sentence." A rival to the better-known Napster ,
MP3.com, started as an Internet bazaar for fans to sample and buy songs by
unknown bands. Later, it began offering users access to major-label artists
without having first obtained the licensing rights. Universal Music Group
and the four other major record labels sued the company. While the other
labels settled out of court, Universal continued with the suit. "If this
ruling holds up on appeal, the music industry is now in the driver's seat in
terms of deciding what business models can be used," said Eric Scheirer, an
analyst at Forrester Research Inc. in Cambridge, Mass. The industry will
"decide where the boundaries of copyright are, and the ground rules for
licensing music." Judge Rakoff said some Internet companies "may have a
misconception that, because their technology is somewhat novel, they are
somehow immune from the ordinary applications of laws of the United States,
including copyright law." Not so, he said: "They need to understand that the
law's domain knows no such limits."
[SOURCE: Washington Post (A1), AUTHOR: David Segal]
(http://washingtonpost.com/wp-dyn/articles/A24289-2000Sep6.html)
See Also:
JUDGE FINDS MP3.COM WILLFULLY INFRINGED ON UNIVERSAL MUSIC GROUP'S
COPYRIGHTS
[SOURCE: Wall Street Journal (B16), AUTHOR: Anna Wilde Mathews And Colleen
Debaise]
(http://interactive.wsj.com/articles/SB968264393911222386.htm)
(Requires subscription)

WIRELESS

AOL IN TALKS WITH SEVERAL CARRIERS
Issue: Internet/Wireless
The largest U.S. Internet services provider, America Online, is in talks
with several firms in search of deals to help it tap into the booming mobile
phone marketplace. Internet companies, which are eager to pair up with
wireless providers, have paid large sums of money for deals with carriers
such as Sprint PCS Group and ATT Wireless Group Inc.in the U.S. to secure a
prominent display on wireless devices' highly coveted small screens,
offering content and services including news and e-mail.
[SOURCE: New York Times, AUTHOR: Reuters]
(http://www.nytimes.com/reuters/technology/tech-aol-wireless-dc.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.

Communications-related Headlines for 9/6/2000

MERGER
2 Agencies Hovering Over AOL Deal (WP)
EC Regulators Raise Concerns About Time Warner-EMI Deal (WSJ)

WORKFORCE
Questioning the Labor Shortage (NYT)

EDTECH
Distance Learning Goes Niche (WSJ)

SPECTRUM
Schools' Spectrum Rights Promise A Bonanza, but Can They Cash In?
(WSJ)
F.C.C. Auctions Mobile Licenses (NYT)

MERGERS

2 AGENCIES HOVERING OVER AOL DEAL
Issue: Mergers
The FTC and FCC are reportedly moving closer in opinion in their appraisal
of the proposed AOL-Time Warner merger. The Post reports that lawyers at the
two commissions are now working closely to figure out how to apply old
antitrust law to what would be the "largest takeover in U.S. history."
Sources say that the FCC is informally supporting the FTC's recommendations
to require the merged entity to open its cable lines to rival Internet
services. The FCC also tentatively accepts the FTC opinion that AOL should
divest itself of its stake in Hughes Electronics' DirecTV product. Both
agencies agree that AOL should sever its ties to AT&T. The shared holdings
and interests of Time Warner and AT&T are of particular concern (see below).
Regulators have not resolved which agency, if either, will make the AT&T
recommendations to AOL-Time Warner. The FTC and FCC are concerned that AOL's
dominant position in Internet access will inappropriately extend to cable
Internet access with the acquisition of Time Warner's cable holdings. Time
Warner is the second-largest cable-television company in the United Sates.
To a lesser degree, the commissions are also concerned about control over
the content that flows over those cable holdings.

Breakout of Holdings:
Time Warner owns Warner Brothers studios, CNN, Time Magazine and has music
recording interests. The matter is complicated by the shared interests of
Time Warner and its cable competitor, AT&T. AT&T, the largest cable provider
in the country owns 25% of Time Warner Entertainment. But, hold on there's
more: AOL owns 5 percent of Net2Phone - AT&T owns 32 percent. AOL, in June,
signed a deal to provide Net2Phone service over AT&T's cable network. Time
Warner is a partial owner of the cable Internet provider Roadrunner with
MediaOne, which was just acquired by AT&T. (With the approval of the AT&T
ownership of MediaOne, however, the FCC has given AT&T the choice of selling
its stake in Time Warner or Liberty Media.) Finally, last year, Time Warner
and AT&T entered into a "preliminary letter of intent" to create a cable
telephony venture.
[SOURCE: Washington Post (E1), AUTHOR: Cha and Stern]
(http://www.washingtonpost.com/wp-dyn/articles/A18300-2000Sep5.html)

EC REGULATORS RAISE CONCERNS ABOUT TIME WARNER-EMI DEAL
Issue: Merger
The European Commission has raised serious objections to Time Warner's plans
to merge its music business with that of EMI Group PLC. EMI possesses the
world's largest catalog of songs, and is also the world's third-largest
music company by revenue. Together with Time Warner, it would rival
Universal Music and dominate smaller "major" labels Sony Music
Entertainment, a unit of Sony Corp., and BMG, a Bertelsmann AG unit. The
European Union's antitrust watchdog says an effective merger of two of the
world's top five recording companies would squelch competition, allowing
EMI-Time Warner to raise prices with impunity. Both competitors and
independent antitrust lawyers say EMI and Time Warner face a hard sell
because of the European commission's finding that the global music market is
dominated by an oligopoly of just five players that would shrink to four if
the deal were approved.
[SOURCE: Wall Street Journal (A18), AUTHOR: Brandon Mitchener And Philip
Shishkin]
(http://interactive.wsj.com/articles/SB968189719344594085.htm)
(Requires subscription)

WORKFORCE

QUESTIONING THE LABOR SHORTAGE
Issue: Workforce
While the high-tech industry has convinced President Clinton and Congress to
raise the quota on H-1Bs, the temporary visas for skilled foreigners, author
Richard Rothstein contends that the worker shortage the move is intended to
address is nothing more than a mirage. The annual H-1B limit will go to
200,000 next year, up from 65,000 only three years ago. High-tech companies
claim that more visas are needed to advert a potential labor crises.
However, according to Norman Matloff, a computer science professor at the
University of California, these companies have created artificial shortages
by refusing to hire experienced programmers. By age 50, fewer than half are
still in the industry. Matloff says that technology industry often rejects
older workers because they require more pay and they will not work the long
hours typical of younger workers. Rothstien suggests that raising wages to
attract those with needed skills is a better way to avoid shortages than
importing low-paid workers.
[SOURCE: New York Times, AUTHOR: Richard Rothstein]
(http://www.nytimes.com/2000/09/06/technology/06LESS.html)
(requires registration)

EDTECH

DISTANCE LEARNING GOES NICHE
Issue: EdTech
As the market for adult education continues to grow, colleges and
universities are forced to develop programs that cater to identified niches.
At new institutions such as the University of Phoenix or established schools
such as Virginia's Old Dominion University, educators are developing
initiatives that focus on specific degrees or training programs while
embracing delivery methods ranging from the Internet to satellite networks
to CD's. The Education Department's National Center for Education Statistics
(NCES) has found that 44 percent of all higher education institutions
offered distance learning courses in the 1997-1998 academic year. That
figure does not include the growing number of private, for-profit entities
that are tapping the expanding market for adult education. The center
estimated that 1.3 million students were enrolled in postsecondary
degree-granting distance learning courses in that same academic year, up
from 750,000 in 1995. However, distance learning executives say they do not
expect to supplant traditional campus-based universities. Instead, they said
they will focus on serving those people for whom a traditional educational
program does not work. "The traditional universities, to some extent, have
disenfranchised the working adult," said Steven Shank, chief executive
officer for Capella University, an online institution. "The traditional
classroom-based education does not wash well for the adult learner. The
typical student for us is aged 25-55, employed with an over full life."
[SOURCE: New York Times, AUTHOR: Rebecca S. Weiner]
(http://www.nytimes.com/2000/09/06/technology/06EDUCATION.html)
(requires registration)

SPECTRUM

SCHOOLS' SPECTRUM RIGHTS PROMISE A BONANZA, BUT CAN THEY CASH IN?
Issue: Spectrum
Schools and universities control a huge chunk of the nation's radio-spectrum
rights--donated to them decades ago by the government to enable the schools
to televise educational programs. With companies bidding billions of dollars
at public auctions for spectrum rights that will allow them to deliver
wireless Internet access and other cutting-edge services, these schools are
learning that they're sitting on a gold mine. The spectrum they control is
worth as much as $160 billion--enough cash to run all of the nation's
elementary and secondary schools for five months. Already, both Sprint and
WorldCom have indicated that they are prepared to pay a fair price to lease
the spectrum. But schools are on their guard. In the past,
telecommunications companies leased spectrum rights from schools at
rock-bottom rates, partly because the race for spectrum hadn't really heated
up yet and partly because educators were terrible negotiators. Many schools
have formed alliances to present a united front in negotiations, although it
is feared that if they are unable to strike a deal with the private
industry, the government may be tempted to take back most of the spectrum
and give it to others. "We have to protect what we have because a lot of
people want it," says Mike Kelley, who runs a wireless-cable service set up
by George Mason University, Fairfax, Va.
[SOURCE: Wall Street Journal (B1), AUTHOR: Mark Wigfield]
(http://interactive.wsj.com/articles/SB968194439903626225.htm)
(Requires subscription)

F.C.C. AUCTIONS MOBILE LICENSES
Issue: Spectrum
The Federal Communications Commission has auctioned off $319 million in
spectrum over a two-week auction that concluded Friday. More than 1,000
wireless communications licenses were sold to wireless service providers,
which will be able to use that spectrum for a variety of services, including
mobile phone and data services, two-way paging, and voice mail and fax
services. Upcoming rounds of auctions are expected to fetch billions of
dollars. The FCC just opened a major wireless auction to large bidders such
as Nextel by removing a requirement that the bidder be a small company for
some licenses, businesses,
[SOURCE: New York Times, AUTHOR: New York Times]
(http://www.nytimes.com/cnet/CNET_0_4_2702658_00.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)

Communications-related Headlines for 9/5/2000

MERGER
Regulators Are Seeking Big Concessions For Approval Of Aol-Time
Warner Deal (WSJ)

EDTECH
Internet at School Is Changing Work of Students--and Teachers (WSJ)

DIGITAL DIVIDE
Technology's Gender Gap (NYT)
Online Deliveries Lighten Burden for the Disabled (USA)

TELEVISION
Microsoft Plans to Take Windows Into the Digital-Television Market
(WSJ)

MERGER

REGULATORS ARE SEEKING BIG CONCESSIONS FOR APPROVAL OF AOL-TIME WARNER DEAL
Issue: Merger
Federal antitrust officials have expressed a willingness to block America
Online's $129 billion acquisition of Time Warner unless the two companies
accept far-reaching restrictions on their combined market power. Federal
Trade Commission staff have raised serious antitrust concerns based on the
companies' potential power over Internet access in cities where Time Warner
controls cable systems n those cities. As a result, AOL-Time Warner could be
forced to open its cable lines in those markets to provide high-speed or
"broadband" Internet access to competitors. Many critics fear that a
combined AOL-Time Warner will have too much control of media content and
distribution. While AOL and Time Warner have pledged publicly to provide
cable access to their competitors, the FTC appears convinced the promises go
far enough.
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke]
(http://interactive.wsj.com/articles/SB968095243675126827.htm)
(requires subscription)
See Also:
F.T.C. LAWYERS PRESSING FOR CONCESSIONS FROM AOL AND TIME WARNER
[SOURCE: New York Times, AUTHOR: The Associated Press]
(http://www.nytimes.com/library/tech/00/09/biztech/articles/05aol-timewarner
.html)
(requires registration)

EDTECH

INTERNET AT SCHOOL IS CHANGING WORK OF STUDENTS--AND TEACHERS
Issue: Education
About 95 percent of the nation's public schools are now connected to the
Internet. By comparison, less than half the nation's households are. The
wiring of America's schools is also changing the way teachers teach and
students learn. Quite possibly, it may be increasing how much students
learn, particularly average and shy ones, educational technology experts
say. While there are no published studies to verify those preliminary
conclusions, and most schools suffer from shortages of tech-trained teachers
and classroom computers, specialists are pleased with the initial results.
"There is nothing that says technology will improve student achievement, but
we believe that it does because it meets so many different learning styles,"
says Cindy Bowman, an education professor at Florida State University.
Two-thirds of public school teachers say they now employ computer
applications in lessons, and at least 30 percent use the Internet, according
to an Education Department survey. And students at every grade level this
school year will exchange e-mails with "keypals" in foreign countries, take
"virtual field trips" to museums and historic sites or research the range of
academic subjects on the Internet.
SOURCE: Washington Post (A02), AUTHOR: Kenneth J. Cooper ]
(http://www.washingtonpost.com/wp-dyn/articles/A11928-2000Sep4.html)
(requires subscription)

DIGITAL DIVIDE

TECHNOLOGY'S GENDER GAP
Issue: Digital Divide
Studies show that women are active users of the new technology and that
female Internet users slightly outnumber male users. However, fewer women
are entering today's booming technology fields. The most recent National
Science Foundation statistics show that between 1984 and 1997, the
proportion of women receiving bachelor's degrees in computer science dropped
from 37 percent to 27 percent. Currently, women make up only 20 percent of
the information technology work force. The technology industry badly needs
more workers. Women represent a major untapped source of talent that could
solve the shortage. One reason is that girls receive little encouragement to
explore computers early in their schooling. Most computer games are
male-oriented, and there are few female role models in technical industries.
Women who perform well in high school math and science are often put off by
male-dominated lecture halls in college. Women who do end up joining the
technology work force have complained about a lack of opportunity for
advancement and an absence of support and mentoring.
[SOURCE: New York Times (A30), AUTHOR: New York Times Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/05tue3.html)

ONLINE DELIVERIES LIGHTEN BURDEN FOR THE DISABLED
Issue: Digital Divide
Online companies with real-world delivery services are a boon for the
disabled. The delivery service of online grocer, YourGrocer.com, works well
with Mary West's need, for example. "I was looking for a place to do a lot
of my shopping," said Ms. West, 35, "because I am visually impaired and I
can't read labels and things on the grocery shelves." Ms. West found
shopping so difficult she had taken to ordering out more than was healthy.
Now she uses special voice recognition software to surf the Web for
everything from dishwashing detergent to vegetables. The growth of online
services such as YourGrocer.com is a winning situation all around. The
customers are empowered and the businesses are finding new markets. The
first page of Kozmo's employee training manual includes a letter from a
disabled customer, a single mother in Seattle who suffers from Epstein-Barr
syndrome and has severe nerve damage from surgeries. "I find myself at the
mercy of my own limitations," Ms. Massey wrote. "Your service has helped
make my life filled with more quality time. By being able to order books,
magazines, movies, games and food from Kozmo, I find that I am able to feel
more in touch and up to date with... people." A recent poll conducted for
the National Organization on Disability found that adults with disabilities
were twice as likely as the nondisabled to report that the Internet had
significantly improved their lives. But the poll also found that only 43
percent of the disabled respondents had access to the Internet, compared
with 57 percent of the nondisabled respondents.
[SOURCE: New York Times (A28), AUTHOR: Jayson Blair]
(http://www.nytimes.com/library/tech/00/09/biztech/articles/05hand.html)
(requires registration)

TELEVISION

MICROSOFT PLANS TO TAKE WINDOWS INTO THE DIGITAL-TELEVISION MARKET
Issue: Television
Microsoft, looking to recapture lost ground in the digital-television
market, has plans to announce later this week a new version of its Windows
operating system that will also power digital TV sets. "Set-top boxes are
growing to be more like PCs," Ed Graczyk, director of Microsoft's TV
Platform Group, said in an interview Monday.Due to be released in the second
half of next year, the company's embedding of existing television software
into PC operating system is its latest attempt to become a leading force in
digital entertainment. Therese Torris, director of European Internet
commerce at Forrester Research in still doesn't think Microsoft is likely to
catch up soon with the digital-TV market leaders. "They don't have ties with
the [major television] networks. They are not part of the TV industry," she
said.
[SOURCE: Wall Street Journal (B12), AUTHOR: David Pringle]
(http://interactive.wsj.com/articles/SB96810193724627324.htm)
(requires subscription)

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

(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.

Communications-related Headlines for 9/1/2000

DIGITAL DIVIDE
Gilmore Lays Out a 'Digital Dominion'(WP)

ANTITRUST
EU May Stop the Music On Time Warner Deals (WSJ)
A Harsh Court Ruling Could Open New Antitrust Front Against
Microsoft (WSJ)

INTERNET
California Passes Bill to Force E-Tailers To Collect State Sales
Tax on Web Sales (WSJ)
MSN Seeks To Overtake Rival AOL (WP)

JOURNALISM
Friction Grows As Bush Sheds Media Pool Precedent (USA)

SPECTRUM
F.C.C. Widens Radio Spectrum for Wireless Networks (NYT)

DIGITAL DIVIDE

GILMORE LAYS OUT A 'DIGITAL DOMINION'
Issue: Digital Divide
Virginia governor, James S. Gilmore III (R), called on the technology
"haves" of Northern Virginia to work with the "have-nots" to create a
"Digital Dominion" that will "make the opportunities of the Internet
available to every citizen." The occasion marked the disbanding of a 2-year
special commission that has assessed the impact of technology on Virginia
and the creation of two new commissions. The first will teach businesses of
all sizes how to use the Internet, the other will work with big cities,
small towns and other parts of the state to transform them into wired
"e-communities." With a nod to Northern Virginia's role in driving Va.'s
economy, Gilmore added that "rather than focus on the development of a
single region, we want all regions to share in the promise and prosperity
that technology can bring to every corner of the commonwealth." Kenneth
Johnson, the Northern Virginia business executive who will co-chair
Gilmore's new business assistance panel, said the state's effort "is not so
much about creating jobs." "It's much more difficult than that--it's
creating jobs and getting them to the areas that need jobs, creating
economic engines," said Johnson.
[SOURCE: Washington Post (A17), AUTHOR: R.H. Melton]
(http://washingtonpost.com/wp-dyn/articles/A59454-2000Aug31.html)

ANTITRUST

EU MAY STOP THE MUSIC ON TIME WARNER DEALS
Issue: Merger
European antitrust enforcers object to Time Warner's plans to link up with
EMI Group PLC and America Online over fears that the combined entity would
squelch competition in the global music industry. The objections contained
in a 45 page long document, set the stage for a confrontation between
European Commission officials and senior executives of the companies next
week in a closed session in Brussels. The commission's greatest concern is
that the combined companies will dominate the global music business, both
offline and online. EMI/Time Warner would be big enough to raise prices
unilaterally without fear of losing market share and generally "lead to a
substantial increase in the ability and incentive of the majors to proceed
to anticompetitive parallel behavior in the market for recorded music,"
according to the EU document. The commission's worries with regard to
existing music markets are compounded by Time Warner's plans to merge with
AOL, primarily because of the latter's potential to become an "essential
facility" for the distribution of music via the Internet.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Brandon Mitchener And
John R. Wilke]
(http://interactive.wsj.com/articles/SB967751432331910717.htm)
(Requires subscription)

HARSH COURT RULING COULD OPEN NEW ANTITRUST FRONT AGAINST MICROSOFT
Issue: Antitrust
A Connecticut judge ordered Microsoft to pay punitive damages of $1 million
to Bristol Technology Inc., in the highest award ever imposed under the
state's fair-trade statute. Last year, a federal judge had found that
Microsoft had engaged in deceptive business practices against Bristol
Technology Inc, a Connecticut software maker, but ruled in the company's
favor on nearly every claim except the unfair-business-practices charge.
Microsoft hailed the jury's July 16, 1999 verdict, as a vindication by
Microsoft, which had argued in the trial that it simply engaged in tough
negotiations with Bristol over the terms of a license for Windows software,
which Bristol needed to build its products. But Thursday's ruling makes it
clear that the case isn't over, and that it could even become a new legal
battleground for Microsoft. The decision offers strong support for
reconsidering the jury's earlier rejection of antitrust claims, and the
company already plans to seek a new trial, said Bristol's lawyer, Patrick
Lynch of O'Melveny & Myers.
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke]
(http://interactive.wsj.com/articles/SB96776455356906081.htm)
(Requires subscription)

INTERNET

CALIFORNIA PASSES BILL TO FORCE E-TAILERS TO COLLECT STATE SALES TAX ON WEB
SALES
Issue: E-Commerce
California has passed a bill to force online retailers that have physical
stores in the state to collect sales tax on online transactions. Supporters
of the bill passed Wednesday in Sacramento hailed the measure's passage as a
victory that will help "level the playing field" between traditional
retailers and online competitors that haven't collected sales taxes. The
bill, which seeks to clarify that online and catalog merchants with a
physical presence in California are obligated to collect a tax on Internet
sales to California residents has stirred powerful emotions among
traditional retailers, Internet merchants and public-policy experts. Chances
of the bill becoming law are uncertain. California Governor, Gray Davis
opposes Internet taxation, and has until end of September to sign it. Even
legislative aides close to supporters of the bill conceded there probably
isn't enough support for the measure to override a veto. The debate over
Internet taxation continues at the federal level, where Congress is
considering a five-year extension of an existing federal e-commerce tax
moratorium.
[SOURCE: Wall Street Journal (B7), AUTHOR: Nick Wingfield]
(http://interactive.wsj.com/articles/SB967770993502922825.htm)
(Requires subscription)
See Also:
CALIFORNIA BILL WOULD MAKE ONLINE COMPANIES PAY SALES TAX
[SOURCE: New York Times, AUTHOR: The Associated Press]
(http://www.nytimes.com/library/tech/00/09/biztech/articles/01online-tax.htm
l)
(requires registration)

MSN SEEKS TO OVERTAKE RIVAL AOL
Issue: Internet
Microsoft Corp. officials yesterday have declared a new mission: to beat AOL
at its own game. Microsoft is taking direct aim at AOL, the market leader in
Internet service providers, by revamping its rival service, MSN. The new MSN
Explorer software is colorful, comes with new features, and, according to
Bob Visse, MSN's lead product manager, is "AOL's worst nightmare." "We're
actually going to beat them at their own game," he said in an interview,
"which is ease of use." Time will tell if MSN has the ability to live up to
its ambitions. Both services are similar in look and feel and monthly
service costs. But MSN claims its software is easier to install, offers more
customizable features, and comes with better bells and whistles. AOL, with
26 million subscribers worldwide is obviously number 1, but MSN is growing
faster than AOL. Since last year MSN has grown by 89 percent compared to AOL
36 percent growth. Additionally, MSN claims to be the leading Web portal
with 201 million users in June.
[SOURCE: Washington Post (E03), AUTHOR: Alec Klein]
(http://www.washingtonpost.com/wp-dyn/articles/A57837-2000Aug31.html)

JOURNALISM

FRICTION GROWS AS BUSH SHEDS MEDIA POOL PRECEDENT
Issue: Journalism/Political Discourse
News organizations have begun complaining to the Bush campaign about the
candidate's refusal to provide reporters with around the clock access. While
Bush has a reputation for spending plenty of time with reporters covering
his presidential campaign, he will also disappear from the media's sight for
hours at a time almost every day, especially when he is at fundraisers in
private homes, goes running or goes to restaurants with his family. Bush's
communications director Karen Hughes points out that he "is a candidate; he
is not the president. He believes at this point that when he is making
public appearances and making news, the press is with him. That's an
appropriate balance between being a candidate and being a private citizen."
But the press has a different view of the situation. "At a time of 24-hour
news, and at a time when there's a certain accepted extent to which those
running for office turn their lives over to public interest, that requires
physical proximity pretty much around the clock," says Mark Halperin, ABC
News political director.
[SOURCE: USAToday (6A), AUTHOR: Martha T. Moore]
(http://www.usatoday.com/usatonline/20000901/2606469s.htm)
(requires registration)

SPECTRUM

F.C.C. WIDENS RADIO SPECTRUM FOR WIRELESS NETWORKS
Issue: Spectrum
In an effort to stimulate the development of wireless products for the home,
the Federal Communications Commission announced yesterday that it had eased
restrictions on part of the radio spectrum. The rule change affects the
2.4-gigahertz band, an area used by companies that produce wireless
local-area networks, or LAN's. Such networks enable people to transmit data
from a desktop computer to a printer without wires. They have been adopted
by office complexes, college campuses and, to a lesser extent, consumers at
home. "The rule change has given us everything we need to develop these
next-generation wireless devices," said Ben Manny, chairman of the HomeRF
Working Group, a coalition of technology companies that asked the F.C.C. two
years ago to relax its restrictions. Among the members of the Home RF group
are Compaq; Intel; Proxim, a wireless LAN company in Sunnyvale, Calif.; and
Siemens, which has developed cordless phones that use the 2.4-gigahertz
band. The rule change widens the terrain for frequency hopping by allowing
signals to be sent across channels that each span 5 megahertz -- up from the
1 megahertz a channel allowed previously. With the added space, engineers
say, HomeRF systems will be able to offer data speeds equal to those of
systems based on direct-sequence technology.
[SOURCE: New York Times (C2), AUTHOR: Lisa Guernsey]
(http://www.nytimes.com/library/tech/00/09/biztech/articles/01spectrum.html)
(requires registration)

--------------------------------------------------------------
...and we're outta here. Happy Labor Day! See ya Tuesday.

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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
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