1. Monthly archive
  2. December 2000

December 2000

Communications-related Headlines for 12/21/00

DIGITAL DIVIDE
Internet Content, Not Access, Creates The Great Divide (USA)
U.S. to Issue Rules Giving the Disabled Access to Most Government
Web Sites (WSJ)

HEALTH
Healing the Online Patient (WP)

INTERNET
Protests Arise Over Business Aspect of Censoring Web (NYT)
The Faithful Believe In Net's Power (USA)

MERGER
AOL Pushes FCC to Make a Decision On Time Warner Deal by Year's End
(WSJ)

DIGITAL DIVIDE

INTERNET CONTENT, NOT ACCESS, CREATES THE GREAT DIVIDE
Issue: Digital Divide
Experts say that the gap between Americans who have Internet access and
those who do not is narrowing. In December 1998, 9.2% of blacks were
connected to the Internet at home, vs. 26.7% of whites and 8.7% of
Hispanics. Those numbers are quickly changing. According to recent
statistics, the number of whites online has increased 88% in 20 months,
while blacks increased their usage of the Net by more than 218%, and
Hispanic use was up more than 172%. "The debate has moved from simple access
to the Internet," says Tony Wilhelm of the Benton Foundation. Now, he says,
advocates for the disenfranchised are focusing on the skills their clients
need to use the Net effectively. A recent study by the Children's
Partnership of low-income Net users found that they wanted more job, housing
and health service information. They also wanted more information in their
native languages, more sites written at a level that beginning English
speakers can understand.
[SOURCE: USAToday (11D), AUTHOR: Will Rodger]
(http://www.usatoday.com/usatonline/20001221/2934589s.htm)

U.S. TO ISSUE RULES GIVING THE DISABLED ACCESS TO MOST GOVERNMENT WEB SITES
Issue: Digital Divide
A new federal rule expected to be issued Thursday will require most
government Web sites to be accessible to the disabled, an action that would
force many agencies to launch redesigns of their Web pages. The rules could
be the first step toward enforcement of a federal mandate that all private
commercial sites also be accessible to the disabled. Legislation passed by
Congress in 1998 requires federal sites to be enhanced with "screen readers"
for the blind, keyboard navigation options for those unable to use a mouse
and other features. The exceptions are agencies linked to national security,
Congress and the judiciary. Only a few federal sites have already been
modified, including the White House. The deadline for completing the
redesigns is six months from Thursday.
[SOURCE: Wall Street Journal (B10), AUTHOR: Glenn R. Simpson]
(http://interactive.wsj.com/articles/SB977359331449369890.htm)
(requires subscription)

HEALTH

INSURERS STAND IN WAY OF TELEMEDICINE
Issue: Telemedicine
Most people assume that when it comes to telemedicine -- connecting doctors
with remote patients -- the medical community is waiting for a big
technological breakthrough. Even the simplest forms of medical interaction -
refilling a prescription or finding out whether a child with a fever needs
to be seen in a pediatrician's office -- so far
have failed to take off in the online world. Today, Internet bandwidth has
grown to where it's a cost-effective alternative to satellite time for all
the enormous files doctors and hospitals can create. But though it's
demonstrably cost-effective, most large insurers generally aren't convinced.
Only those physicians who don't have to worry about
fees can afford to advance telemedical practice, which is why the bulk of it
is being done in the military and in prisons where doctors don't have to
worry about rent, paying office staff or malpractice insurance.
[SOURCE: Washington Post (12/19), AUTHOR: Jim Mathews]
(http://www.washtech.com/news/biotech/6095-1.html)

INTERNET

INTERNET CENSORING REQUIREMENTS AROUSE CONCERN
Issue: Privacy
When Congress passed a new bill last week requiring virtually every school
and library in the nation to install technology to protect minors from adult
materials online, it created a business opportunity for companies that sell
Internet filtering systems. But the measure also produced vehement protest
from educators and civil liberties groups. Among the critics' complaints is
that some of the filtering companies' business plans include tracking
students' Web wanderings and selling the data to market research firms. In
defense, filter makers describe their products as flexible tools that leave
Internet protection decisions to schools and libraries, which can customize
the products to suit their needs. The new law, to go into effect early next
year, is linked to the federal e- rate program, which allows schools and
libraries to be reimbursed for the costs of connecting to the Internet.
Despite the new law's provision for local control, the measure will put a
great deal of power into the hands of companies like N2H2, SurfControl and
Symantec, leading producers of filtering software. It also promises to
create a boom for the $90 million market for Internet filtering, said Brian
Burke, a research analyst with IDC.
[SOURCE: New York Times, AUTHOR: John Schwartz]
(http://www.nytimes.com/2000/12/21/technology/21FILT.html)
(requires registration)

THE FAITHFUL BELIEVE IN NET'S POWER
Issue: Internet
Churches and synagogues may have concerns about pornography, privacy and
rampant commercialism on the Internet, but that isn't stopping them from
taking advantage of the benefits of online communications. Many are sending
e-mail to members, and some even put their worship services online in
streaming audio and video. According to Lee Rainie, director of the Pew
Internet & American Life Project, which studies the Net's impact on various
segments of society, 21% of Net users seek spiritual material online. A
Catholic priest who ministers online says "It's awfully hard to knock on the
door of the rectory and say, 'Father, I want to talk to you.' This is a way
to get started a little more anonymously." However, the reach of most
religion sites is so low that only in the past few months have they even
begun to show up on Internet analysts' radar. The top general-interest site,
Yahoo, gets about 55 million unduplicated visitors a month, but the Web's
No. 1 religion site, Gospelcom.net, had 773,000 unduplicated visitors in
November and ranks only No. 1,565 among all Web sites. The reason? Many
sites focus on one denomination or are non-profit and don't advertise.
[SOURCE: USAToday (3D), AUTHOR: Leslie Miller]
(http://www.usatoday.com/usatonline/20001221/2934692s.htm)

MERGER

AOL PUSHES FCC TO MAKE A DECISION ON TIME WARNER DEAL BY YEAR'S END
Issue: Merger
America Online is pushing the Federal Communications Commission to reach a
verdict on the AOL-Time Warner merger before the year's end because of the
"substantial" financial burden of filing partial-year taxes. At the same
time, AOL is defending its instant-messaging system, which is being
scrutinized by the FCC. AOL suggested that the agency could monitor the
health of the instant-messaging market after the merger by tracking the
growth of rivals and the adoption of an industry wide standard for instant
messaging. The Federal Trade Commission last week approved the merger with
firm conditions that require AOL Time Warner to allow competitors to offer
Internet services on the new media company's cable lines. The FCC hasn't
said when it will complete its review.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB977365001685232451.htm)
(requires subscription)
See Also:
AOL ASKS FCC FOR QUICK APPROVAL OF MERGER
[SOURCE: New York Times, AUTHOR: Bloomberg News]
(http://www.nytimes.com/2000/12/21/technology/21AOL.html)
(requires registration)

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

Communications-related Headlines for 12/20/00

EDTECH
Congressional Commission Endorses Use of Internet in Classrooms (WP)
Schools, Libraries May Have to Filter Out Pornography (NYT)

DIGITAL TV
CME and Coalition Call for Strong FCC Rules Digital Television (CME)

INTERNET
Taxing the Internet: How Will Congress Interpret the Law? (WSJ)

WIRELESS
Two Studies Reject Link Between Cell Phones And Brain Cancer (NYT)

EDTECH

CONGRESSIONAL COMMISSION ENDORSES USE OF INTERNET IN CLASSROOMS
Issue: Internet
A bipartisan commission formed by Congress gave a broad endorsement today to
the growing use of the Internet in the nation's classrooms, calling on the
federal government to do more to promote online learning from preschool to
the workplace. The final report of the Web-based Education Commission
boosted the prospects that federal emphasis on computer use in the classroom
-- a priority of the Clinton administration -- will stay on the agenda once
President-elect Bush and a new Congress take office next year. The panel,
chaired by retiring Sen. Bob Kerrey (D-Neb.), made seven recommendations to
involve states, colleges and businesses as well as the federal government in
mobilizing the nation to capture the "extraordinary promise" of Web-based
learning. The federal government was urged to upgrade school Internet
access to broadband connections that have greater speed and capacity.
The panel also urged more federal and state funding to support the expansion
of educational technology. The commission urged Congress to boost funding
for federal research and called for changes in federal regulations that
limit financial aid for students who take college courses over the Web.
[SOURCE: Washington Post (A02) AUTHOR: Kenneth J. Cooper]
(http://www.washingtonpost.com/wp-dyn/articles/A27736-2000Dec19.html)

SCHOOLS, LIBRARIES MAY HAVE TO FILTER OUT PORNOGRAPHY
Issue: Edtech
Schools and libraries must begin using Internet filtering software next year
to protect children from pornography or risk losing federal money -- thanks
to a mandate approved by lawmakers before they left town. The requirement is
raising concerns among free-speech advocates who say it violates the
Constitution and, perhaps ironically, from software makers worried that
filtering technology is not a cure-all for protecting kids. "This is a
mandated censorship system by the federal government," said Chris Hansen, a
lawyer for the American Civil Liberties Union, which plans to sue in an
effort to block the law. At issue is the Children's Internet Protection Act,
which was unexpectedly attached to a $450 billion federal spending bill
Congress passed last Friday before recessing for the year. President Clinton
is expected to sign the bill
into law.
[SOURCE: New York Times (Online) AUTHOR: Associated Press]
(http://www.nytimes.com/aponline/national/AP-Library-Filters.html)
(requires registration)

DIGITAL TV

CME AND COALITION CALL FOR STRONG FCC RULES DIGITAL TELEVISION
Issue: Digital TV
A coalition of 40 child advocacy, health and education organizations and
academics called on the Federal Communications Commission (FCC) to develop
effective rules to ensure that digital broadcasters serve the needs of
children. The Center for Media Education (CME), the National PTA, the
National Association of Elementary School Principals (NAESP), the Consumer
Federation of America (CFA), the American Psychological
Association (APA), the National Education Association (NEA), and others
filed formal Comments with the FCC on Monday, December 18, in response to a
Notice of Proposed Rule Making (NPRM) on the children's television
obligations of digital broadcasters. The coalition asked the FCC to develop
clear, quantifiable guidelines on how DTV broadcasters should serve the
educational/informational needs of children, as well as adapting policies to
protect children from unfair and excessive advertising practices, such as
product placements and targeted promotions. Full Comments and list of
signatories submitted to the FCC are available in PDF format:
(http://www.cme.org/press/DTV_NPRM_comments.pdf).
[SOURCE: Center For Media Education]
(http://www.cme.org/press/001219pr.html)

INTERNET

TAXING THE INTERNET: HOW WILL CONGRESS INTERPRET THE LAW?
Issue: Internet
The Internet Tax Freedom Act of 1998 laid down a three-year moratorium on
the imposition of new federal, state and local taxes on Internet access, as
well as a three-year moratorium on new federal taxation of services offered
over the Internet. The Act also prohibits discriminatory taxes on e-commerce
during the three-year moratorium period. However, in a letter sent earlier
this year to the Senate Commerce Committee, a coalition ranging from the
National Governors Association to the National Retail Federation said any
new legislation should insure that "consumers who pay sales taxes in stores
no longer have to subsidize Internet customers who don't pay sales taxes."
The American Federation of State, County and Municipal Employees is opposed
to any extension of the moratorium "because any further extension of the
moratorium without first addressing the need to collect existing sales taxes
... is unacceptable." The National Conference of State Legislatures and the
National Governors Association are looking for ways to simplify and unify
state tax-collection systems so that they can be applied to
bricks-and-mortar and Internet sales alike. Ideally, under a national scheme
an Internet seller would be able to take a single approach to nationwide tax
compliance.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Jon Hart And Mike Hines]
(http://interactive.wsj.com/articles/SB977006380777599628.htm)
(requires subscription)

WIRELESS

TWO STUDIES REJECT LINK BETWEEN CELL PHONES AND BRAIN CANCER
Issue: Wireless
Two new studies on the relationship between cellular phones and brain tumors
have found that cell-phone users are no more likely than anyone else to
develop benign tumors or malignant brain cancers. One study, supported by
the National Cancer Institute, was released last night, weeks ahead of its
scheduled publication in the New England
Journal of Medicine, to match a smaller study, which was paid for by the
cell-phone industry and the federal government, that is being published
today in the Journal of the American Medical Association. Scientists and
public health experts said that the results should help ease the fears among
many Americans that cell phones -- now estimated to be used by more than 90
million residents -- can cause brain cancer, which strikes 16,500 Americans
a year. Dr. Mark G. Malkin, a neurologist at Memorial Sloan-Kettering Cancer
Center in New York and an author of the smaller study, noted that cell
phones have not been in widespread use for many years and that cancers could
take
years to develop; thus, he said, it might be worthwhile to repeat the
studies in years to come.
[SOURCE: New York Times (A1), AUTHOR: Gina Kolata]
(http://www.nytimes.com/2000/12/20/science/20PHON.html)
(requires registration)
See Also:
STUDIES FIND NO RISK OF CANCER ASSOCIATED WITH CELL-PHONE USE
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Laura Johannes And
Nicole Harris]
(http://interactive.wsj.com/articles/SB977275565554822879.htm)
(requires subscription)

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

Communications-related Headlines for 12/19/00

LOW POWER RADIO
Congress Severely Curtails Plan for Low-Power Radio Stations (NYT)

DIGITAL DIVIDE
A Cell Phone Surge Among World's Poor in Haiti (NYT)

INTERNET
Health Care Online and in the Third Person (NYT)
Gates Urges Regulators to Address Instant Messaging (NYT)
Can Technology Fix Balloting Problems? (USA)

LOW POWER RADIO

CONGRESS SEVERELY CURTAILS PLAN FOR LOW-POWER RADIO STATIONS
Issue: Low Power Radio
President Clinton will soon sign into law a provision that will sharply
curtail the Federal Communications Commission ambitious plan to issue
licenses for low-power FM radio stations to 1,000 or more schools, churches
and other small community organizations. The provision will set new
technical standards that will make it all but impossible for licenses to be
issued in cities of even modest size. The new law also shifts the
policy-making authority from the FCC to Congress to set standards and issue
licenses for low-power FM stations. The FCC's low-power radio plan was
conceived last January to counter the huge consolidation in the broadcasting
industry that the agency's chairman, William E. Kennard, concluded had led
to a sharp decline in the diversity of voices on the airwaves. Large
broadcasters, including National Public Radio, had complained that the
creation of so many low- power stations would have produced interference
with their broadcast.
[SOURCE: New York Times (), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2000/12/19/business/19RADI.html)
(requires registration)

DIGITAL DIVIDE

WIRELESS SERVICE OFTEN THE ONLY CHOICE IN POOR COUNTRIES
Issue: Digital Divide
Cellular telephones may be increasingly popular in the United States and
other prosperous countries, but demand is growing even faster in the world's
poor nations, including Haiti. With financially distressed governments often
unable to provide adequate public services, including telephones, people are
turning to privately built wireless networks. Amid new political and
economic tension in Haiti, one of the few systems that works reliably is the
privately run cellular telephone network. Less than 1 percent of the
country's nearly 8 million people have conventional, fixed-line phone
service, compared with more than 95 percent in the United States. And while
regular telephone service is less expensive than wireless service, there are
400,000 Haitians on the waiting list. Haiti is not alone among poor
countries in witnessing the growth of wireless communications services. In
some Latin American countries, wireless subscribers now outnumber customers
of traditional fixed-line telephone companies. And while the number of
wireless users was growing by 24 percent in the United States last year and
70 percent in Europe, the growth rate in Africa was 116 percent.
[SOURCE: New York Times, AUTHOR: Simon Romero]
(http://www.nytimes.com/2000/12/19/technology/19CELL.html)
(requires registration)

INTERNET

CAN TECHNOLOGY FIX BALLOTING PROBLEMS?
Issue: Internet
This year's presidential race, according to John Chambers, President and CEO
of Cisco Systems, has highlighted the fact that our system of conducting
elections is out of date. "We live in the Internet age, but we vote with
punch-card technology that's as old as radio," says Chambers. He suggests
that a potential solution lies in the Internet, which has enormous potential
to make voting much more easily available to all Americans. He points to
evidence that young Americans would be particularly likely to vote online. A
poll by ABC News found that 61% of 18- to 34-year-olds would like to vote
online. He touts the great strength of the Internet is that it will be
available to everyone everywhere -- at schools, at libraries and in homes.
[SOURCE: USAToday (15A), AUTHOR: John Chambers (President and CEO of Cisco
Systems)]
(http://www.usatoday.com/usatonline/20001219/2927205s.htm)

INTERNET USERS FIND MEDICAL HELP FOR THEMSELVES, OTHERS
Issue: Internet
People who use the Internet to research health questions are as likely to be
looking for information about a friend or relative as about themselves,
according to a study undertaken as part of the Pew Internet and American
Life Project. The study indicated that slightly more than half of Americans
with Internet access use it at least once a month for health information.
And about 40 percent of those health seekers said that their Web searches
affected their decisions about whether to go to the doctor, what questions
to ask and how to treat an illness. These health seekers were more often
middle-aged than young or old and about 60 percent of them were women, the
report said. Men outnumbered women in one category: searches on sensitive
topics.
[SOURCE: New York Times, AUTHOR: John O'Neil]
(http://www.nytimes.com/2000/12/19/science/19PEWE.html)
(requires registration)

GATES ASKS FCC TO SCRUTINIZE AOL'S INSTANT MESSAGING DOMINANCE
Issue: Internet
Microsoft Chairman Bill Gates telephoned the chairman of the Federal
Communications Commission last week to urge a close examination of America
Online's dominance in instant messaging, a Microsoft representative has
confirmed. The call came as the FCC closes in on a recommendation concerning
AOL's proposed merger with Time Warner, which could include requiring AOL to
make concessions on instant messaging. The FCC and AOL declined to comment.
Microsoft declined to comment further. AOL has an overwhelming lead in the
sector with its IM population, a distinction that many competitors,
including Microsoft and Yahoo, say should require it to open its network to
rivals.
[SOURCE: CNET NEWS.COM, AUTHOR: Jim Hu]
(http://www.nytimes.com/cnet/CNET_0_4_4175384_00.html)
(requires registration)

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

Communications-related Headlines for 12/17/00

BROADCASTING
Anti-LPFM Legislation Final (MAP)
Low Power FM Filing Window (FCC)
Mixed Signals (WP)

COMPETITION
Rules for AOL-Time Warner May Have Only a Narrow Impact (NYT)
Despite Competition, Regional Bells Still Rule Local Lines (USA)

INTERNET
Labor Unions Discover Web As Tool to Press for Change (WSJ)

BROADCASTING

ANTI-LPFM LEGISLATION FINAL
Issue: Low Power Radio
As of Friday evening December 15, it appears all but final that the
anti-LPFM language contained in a Commerce, Justice, State Appropriations
bill will pass both the House and Senate as part of the omnibus budget
bills. Under the legislation, the previously enforced interference rules
will go into effect, potentially limiting the number of low power stations
by 80%. Up-to-date information of the effects of this legislation and
pro-low power radio plans will be posted shortly on the Media Access
Project's Web site (http://www.mediaaccess.org/).
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/programs/lpfm/index.html#antiLPFM)

LOW POWER FM FILING WINDOW
Issue: Low Power Radio
The Federal Communications Commission has announced an application filing
window for construction permits for Low Power FM (LPFM) stations in 2001
American Samoa, Colorado, Delaware, Hawaii, Idaho, Missouri, New York, Ohio,
South Carolina, South Dakota, and Wisconsin. The window will be open on
January 16, 2001 and close on January 22. This is the third of five
successive filing windows the Commission plans to hold for each group of
states and territories.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/Public_Notices/FM_Windows/da002831.ht
ml)

MIXED SIGNALS
Issue: DTV
Two years after the first digital stations went on the air, only one
commercial network--CBS--regularly airs high-definition (HDTV) programming
during prime time. TV manufacturers say they have little incentive to the
expensive digital receivers because there isn't enough programming
available. Several years ago, the government gave the broadcasters valuable
rights to the airwaves they needed to speed the transition to digital. But
now, the slow adoption by broadcasters is now some prominent lawmakers now
say the government should never have given away the rights to the airwaves.
"It is one of the great rip-offs in American history. They used to rob
trains in the Old West, now we rob spectrum," said Senate Commerce Committee
Chairman John McCain (R-Ariz.). "I think there is a general feeling that
this is not going well," said House Telecommunications Committee Chairman
W.J. "Billy"
Tauzin (R-La.), whose subcommittee oversees the Federal Communications
Commission, which is charged with supervising the digital transition. Both
McCain and Tauzin are planning hearings on digital television next year.
[SOURCE: Washington Post, 12/17(H01), AUTHOR: Christopher Stern]
(http://www.washingtonpost.com/wp-dyn/articles/A13103-2000Dec15.html)

COMPETITION

RULES FOR AOL-TIME WARNER MAY HAVE ONLY A NARROW IMPACT
Issue: Merger
Despite the sweeping predictions of consumer benefits from the Federal Trade
Commission's ruling that will require a combined AOL/Time Warner to provide
rivals access to its cable systems, many things about the future of the
high-speed Internet business remain uncertain. While cable companies are not
generally required to sell competitors access to their systems, federal
regulators can extract "open access" as a concession in the context of a
merger-approval process. But last week's concessions by AOL and Time Warner
do not have some magical precedent-setting value that will somehow
automatically bring the rules to bear on the other big cable companies. The
AOL-Time Warner concessions are "clearly a step in the right direction, and
it is more than any other cable company has agreed to to date," said R.
Steven Davis, senior vice president for law and policy at Qwest
Communications International. "It takes away that argument that it is not
technically feasible for them to do this."
[SOURCE: New York Times (B1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/2000/12/18/technology/18AOLL.html
(requires registration)

DESPITE COMPETITION, REGIONAL BELLS STILL RULE LOCAL LINES
Issue: Telephony
Nearly five years after Congress ordered local phone monopolies to open
their markets to competition, fewer than 7% of customers nationwide receive
service from rival local carriers. "Competition is taking longer than
expected, but it is moving forward," says Ron Binz of the Competition Policy
Institute. So far, only two states -- New York and Texas -- have met the
1996 law's standard for deeming that a market is open to competition. The
long-distance phone companies say that the main hurdle to expanding consumer
choice is that the regional Bell companies, which own the lines into
people's homes, charge competitors too much for access to those lines. But
long distance companies are also finding that the local phone market is not
as lucrative as they hoped. Some say that true competition won't come until
competitors can leapfrog local phone networks with cable TV, satellite and
wireless connections.
[SOURCE: USAToday (13B), AUTHOR: Andrew Backover]
(http://www.usatoday.com/usatonline/20001218/2924558s.htm)

INTERNET

LABOR UNIONS DISCOVER WEB AS TOOL TO PRESS FOR CHANGE
Issue: Internet
Members of the Communications Workers of America have created a Web site
(www.attinsider.com) to voice their opposition to the company's plans to
break itself up into four parts. Jeff Miller, a spokesman for the
communications workers, says the union hopes the Web site will grab the
attention of people who are dissatisfied with AT&T's performance. "We'll
shortly be notifying our members about the site, and also informing
institutional shareholders and analysts in the hopes they'll take a look,"
he says. Web sites have become crucial in many union initiatives to
influence shareholders. Corporate executives say dealing with a Web site is
now a regular part of dealing with unions. "Time was, if you fought a union,
it meant contending with an old man carrying a sign in a pick-up truck,"
says Robert Boykin, chairman and chief executive of Boykin Lodging Co. "That
time is gone."
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Aaron Elstein]
(http://interactive.wsj.com/articles/SB976811584750296941.htm)
(requires subscription)

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

Communications-related Headlines for 12/15/00

MERGER
AOL and Time Warner Gain Approval for Huge Deal, but With Strict
Conditions (NYT)
FTC Action A Major Step Towards Open High-Speed Internet Access
(CME)
Protecting Cable Customers (NYT)

INTERNET
Aliases Subject Of Internet Libel Case (NYT)

BROADBAND
Qwest Asks for Access to AT&T's Network (NYT)

TECH POLICY
Bush Spells Trouble For Economy, Tech Policy (SJM)

MERGER
FTC APPROVES AOL-TIME WARNER MERGER
Issue: Merger
The Federal Trade Commission has approved the proposed merger of America
Online and Time Warner, clearing the way for the creation of the world's
biggest media business. The agency's approval came after the two companies
agreed to stringent conditions meant to ensure competition in providing
Internet services and the interactive television systems of the future. By
requiring the merged AOL Time Warner to offer users a choice of providers
for high-speed Internet access over its cable systems, analysts said, the
FTC's order may encourage lower prices and innovative services--from online
music subscriptions to new ways to purchase items while watching television.
The biggest remaining official hurdle is winning the approval of another
important American regulator, the Federal Communications Commission. The FCC
has indicated that it can approve the deal by the end of this month. The
consent decree also requires AOL Time Warner not to use its technology to
interfere with any interactive television service its cable subscribers
choose to use. To promote the spread of high-speed telephone services as
competition for fast cable links, the decree requires the merged company to
continue offering AOL over digital subscriber line services in Time Warner's
cable markets.
[SOURCE: New York Times (A1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2000/12/15/technology/15DEAL.html)
(requires registration)
See Also:
FTC APPROVES AOL-TIME WARNER DEAL
[SOURCE: Wall Street Journal (A1), AUTHOR: ]
(http://interactive.wsj.com/articles/SB97681324486436400.htm)
(requires subscription)
AOL MERGER CLEARS LAST BIG HURDLE
[SOURCE: Washington Post (A01), AUTHOR: Alec Klein]
(http://washingtonpost.com/wp-dyn/articles/A7571-2000Dec14.html)
FTC APPROVES $105B MERGER OF AOL, TIME WARNER
[SOURCE: USAToday (1A), AUTHOR: Paul Davidson]
(http://www.usatoday.com/usatonline/20001215/2920976s.htm)

FTC ACTION A MAJOR STEP TOWARDS OPEN HIGH-SPEED INTERNET ACCESS
Issue: Merger
Jeff Chester, executive director of the Center for Media Education (CME),
one of the four consumer groups that opposed the merger and called for
open-access regulations, praises the FTC for arriving at an agreement that
sets up a number of basic merger safeguards: "These were difficult
negotiations, with a lot of high-stakes lobbying on all sides, and Chairman
Pitofsky and the FTC are to be commended for striking a balance between
corporate concerns and the public interest."

[SOURCE: Center For Media Education]
(http://www.cme.org/access/broadband/ftcaolpr.html)

PROTECTING CABLE CUSTOMERS
Issue: Merger
Yesterday, the Federal Trade Commission approved an innovative agreement
that permits the AOL/Time Warner merger to go forward, but still attempts to
protect the diversity of news and entertainment that flow into American
homes. Many feared that a combined company would reduce competition among
companies that provide high-speed access to the Internet. The Times claims
that the commission has satisfactorily answered the threat by requiring Time
Warner to offer customers in large markets at least three independent
Internet companies from which to choose. This is the first time that
monopolistic cable companies have been required to offer their customers a
choice.
[SOURCE: New York Times (A28), AUTHOR: ]
(http://www.nytimes.com/2000/12/15/opinion/15FRI2.html)
(requires registration)

INTERNET
ALIASES SUBJECT OF INTERNET LIBEL CASE
Issue: Internet
Last week Judge Richard L. Williams of the federal district court in
Richmond, Va., gave his seal of approval to a jury's verdict that awarded
$675,000 in compensatory and punitive damages to Dr. Sam D. Graham Jr., a
urologist in private practice in Virginia and former head of the department
of urology at Emory University School of Medicine. According to evidence
presented at the trial, Dr. Graham was the subject of statements published
on a Yahoo message board accusing him of accepting illegal kickbacks while
at Emory and of leaving the school under a cloud. The statements were
written by an individual who went by the handle "fbiinformant" and who was
later discovered to be Dr. Jonathan R. Oppenheimer, a pathologist based in
Nashville. A jury found that Oppenheimer and a company he operates were
guilty of defamation and intentional infliction of emotional distress.
Lawyers say the case may well represent the first time in the United States
that a jury imposed a substantial libel award against a defendant who
published an anonymous Internet message.
[SOURCE: New York Times (), AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/2000/12/14/technology/15CYBERLAW.html)
(requires registration)

BROADBAND

QWEST ASKS FOR ACCESS TO AT&T'S NETWORK
Issue: Broadband
Qwest Communications said on Thursday it had asked AT&T to let it connect
to AT&T's cable networks in Colorado and Washington as it readies to launch
high-speed Internet access cable modem services in those areas. AT&T's
spokesman in Denver could not be immediately reached for comment on Qwest's
request. ``AT&T can not discriminate against its competitors by prohibiting
access to those facilities for the provision of such service,'' Qwest said
According to the company, AT&T has repeatedly argued that Qwest must open
its network and systems to competitors, but in return, has refused any
request for opening its own network.
[SOURCE: New York Times (Online), AUTHOR: Reuters]
(http://www.nytimes.com/reuters/technology/tech-qwest-att-dc.html)
(requires registration)

TECH POLICY

BUSH SPELLS TROUBLE FOR ECONOMY, TECH POLICY
Issue: Regulation
According to San Jose Mercury columnist Dan Gillmor, President Elect George
W. Bush "has shown disinterest, if not outright cluelessness" on critical
issues of technology policy. "Bush seems inclined to give a free ride to the
age's ascendant oligopolists, monopolists and other market manipulators,"
says Gillmor. He goes on to predict that Bush will favor corporate interests
over the public interest in virtually every case.
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
(http://www0.mercurycenter.com/svtech/columns/front/docs/dg121500.htm)

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

Communications-related Headlines for 12/14/00

OWNERSHIP
FCC Recommends Steps to Facilitate Fair Competition (FCC)
F.T.C. Action on Big Merger Set for Today (NYT)

EDTECH
Secretary Riley to Release National Educational Technology (DOE)

PRIVACY/SECURITY
Study Finds That Caching by Browsers Creates a Threat to Surfers'
Privacy (NYT)
EU Plans to Issue Guidelines On Fighting Internet Crime (WSJ)

WIRELESS
Two Continents, Disconnected (NYT)

OWNERSHIP

FCC RECOMMENDS STEPS TO FACILITATE FAIR COMPETITION
Issue: Ownership
On Tuesday, FCC Chairman William E. Kennard, along with Commissioners Susan
Ness and Gloria Tristani, presided over a public forum at which five studies
on market entry barriers facing small, women- and minority-owned businesses
were released. The reports indicate that consolidation in the
telecommunications industry since the passage of the 1996 Telecommunications
Act has had a particularly harmful effect on the number of small,
women-owned and minority-owned businesses in that industry. At the forum,
Chairman Kennard recommended four action items: 1)Congress should
re-institute and reinvigorate the tax certificate program; 2) Congress
should substantially increase funding for the Telecommunications Development
Fund; 3) The Commission should reexamine the means by which it determines
minority ownership; and 4) The Commission, industry and public interest
organizations should collectively explore ways to promote opportunities for
small, women- and minority-owned businesses in new rather than old media.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Enforcement/News_Releases/2000/nren0034.html)

F.T.C. ACTION ON BIG MERGER SET FOR TODAY
Issue: Merger
The fate of America Online and Time Warner is on the line today. The Federal
Trade Commission will hold a meeting to decide whether to approve the
proposed merger, taking a vote that officials said today remained too close
to call. There have been reports that several FTC commissioners, including
Robert Pitofsky, the agency's chairman, were wrestling with the decision.
Mr. Pitofsky was described by some people who have seen him in recent days
as both troubled by the deal and not entirely satisfied by a proposed
consent decree that would seal the deal. To regulators, the biggest issue
presented by the merger of the world's largest online company with the
nation's biggest entertainment and news conglomerate has been the treatment
of rival Internet service providers and content producers. Last month, in an
effort to gain regulatory approval, Time Warner announced that it had
reached a deal with Earthlink, the nation's second-largest Internet service
provider after AOL, that would give the company access to customers of Time
Warner's large high-speed cable network. But small and midsize service
providers argue that such a deal would put them out of business.
[SOURCE: New York Times (C1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2000/12/14/technology/14AOL.html)
(requires registration)
See Also:
AOL AND TIME WARNER PLEDGE CABLE ACCESS TO EASE FTC FEARS
[SOURCE: Wall Street Journal (A3), AUTHOR: JOHN R. WILKE]
(http://interactive.wsj.com/articles/SB976749505314453933.htm)
(requires subscription)
FTC TO VOTE ON AOL DEAL TODAY
[SOURCE: USA Today (Interactive), AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/invest/ina440.htm)

EDTECH

SECRETARY RILEY TO RELEASE NATIONAL EDUCATIONAL TECHNOLOGY
Issue: EdTech
On Friday, December 15, Secretary Riley will release the U.S. Department of
Education's new national educational technology plan, e-Learning: Putting a
World-Class Education at the Fingertips of All Children. The plan completes
an 18-month effort that involved educators, administrators, policy-makers
and the private sector to rethink and revise the national strategy for the
effective use of technology in elementary and secondary education.
e-Learning will be posted on the Department's web site.
[SOURCE: Department of Education, Office of Educational Technology (OET)]
(http://www.ed.gov/Technology)

PRIVACY/SECURITY

STUDY FINDS THAT CACHING BY BROWSERS CREATES A THREAT TO SURFERS' PRIVACY
Issue: Privacy
A study from Princeton University has found that one part of Web browsers
the caches might also allow unscrupulous Web site operators to spy on their
visitors' browsing habits. Edward W. Felten, co-director of Princeton's
Secure Internet Programming Laboratory and co-author of the paper with
Michael Schneider, said he was not aware of any actual snooping but that
this potential intrusion poses a significant threat to privacy. Browsers
speed up Web use by storing, or caching, recently viewed Web pages on their
user's hard drive (not all pages can be cached.) Felten found the technique
was effective even if the visitor had the fastest of high-speed connections
and that using so-called anonymizer programs designed to protect Web
surfers from online intruders makes cache attacks easier. Turning off the
browser's caching ability would eliminate the problem, but the extra demands
on Web servers and the extra traffic on networks would ultimately slow down
the entire Internet. Neither Microsoft nor Netscape disputes Felten's
finding.
[SOURCE: New York Times, AUTHOR: Ian Austen]
(http://www.nytimes.com/2000/12/14/technology/14PRIV.html)
(requires registration)

EU PLANS TO ISSUE GUIDELINES ON FIGHTING INTERNET CRIME
Issue: Security
Hoping to boost confidence on e-commerce, the European Commission will issue
recommendations for member states on how to battle Internet crime on Dec.
21. One of the recommendations aims to establish links among the 15 European
Union members to monitor and react swiftly to online crimes such as credit
card theft. Draft recommendations propose legislation that member countries
could enact to establish closer links among law enforcement agencies to
better spot and stop cybercrime. According to a report by
PriceWaterhouseCoopers, European consumers are more unwilling to disclose
their credit-card details and personal information over the Internet, as
opposed to Americans. "We have to raise awareness among industry and
consumers on protecting their systems against outside attacks or
infiltration," European Commission spokesman Per Haugaard said Tuesday.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Associated Press]
(http://interactive.wsj.com/articles/SB976721274416392080.htm)
(requires subscription)

WIRELESS

TWO CONTINENTS, DISCONNECTED
Issue: Wireless
Wireless communication in Finland is far ahead of the pace in New York City.
If the greatness of cities were measured in cellular units of Nokia,
Ericsson and Motorola, New Yorkers would not only finish well behind
Helsinkians, Romans and Tokyoites but would also come up short behind many
fellow Americans as well. In a recent Wireless Report Card issued by
Cellmania, a company in San Jose, Calif., New York ranked last among 16
major cities for affordability and convenience of wireless conditions.
[SOURCE: New York Times, AUTHOR: Dean E. Murphy]
(http://www.nytimes.com/2000/12/14/nyregion/14WIRE.html)
(requires registration)

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

Communications-related Headlines for 12/13/00

EDTECH
Research To Assess Computers Effects On Classrooms (NYT)
This Buffy Slays Indian Stereotypes (USA)

INTERNET
Health Web Sites Will Form Privacy, Accuracy Policies (WSJ)
New Media Streaming into the Mainstream (SJM)
Filing Online? It May Be Free (USA)

E-COMMERCE
Corporate Coalition, OECD To Sign E-Commerce Accord (WSJ)

WIRELESS
Majority Of U.S. Households Now Have Mobile Phones (NYT)

EDTECH

RESEARCH TO ASSESS COMPUTERS EFFECTS ON CLASSROOMS
Issue: EdTech
The American Academy of Pediatrics is teaming up with an organization known
for its skepticism of technology use in the classroom to fund new research
into how computers and software impact the development of children from
birth though age 11. The academy is partnering with Woodland, Calif.-based
Learning in the Real World, a nonprofit organization that questions the
merit of technology in schools. The groups are funding one-year research
grants of up to $50,000 to study questions relating to computer use and its
impact on motor development. "Children spend a lot of time surfing the Net,
but there is no research to date on the effects, especially on young
children," said Miriam Bar-on, chairwoman of the American Academy of
Pediatrics' Committee on Public Education. A study titled "Fools Gold: A
Critical Look at Computers in Childhood" by the Alliance for Childhood said
there is not enough research into the impact computers could have on the
developing minds of young children. That study, which was released in
September of this year, called for a moratorium on computers in elementary
school classrooms until further research is done.
[SOURCE: New York Times, AUTHOR: Rebbeca S. Weiner]
(http://www.nytimes.com/2000/12/13/technology/13EDUCATION.html)
(requires registration)
See Also:
LET THE TEACHERS TEACH
[SOURCE: San Jose Mercury News, AUTHOR: Moira Gunn]
(http://www0.mercurycenter.com/svtech/columns/front/docs/mg121200.htm)

THIS BUFFY SLAYS INDIAN STEREOTYPES
Issue: EdTech
Academy Award-winning songwriter Buffy Sainte-Marie didn't take to her son's
fifth-grade curriculum on Native Americans in the mid-1980s. "It was the
same old dead text on dead Indians," says Sainte-Marie, who is a Cree. "It
was shallow, inaccurate and not interesting." In response to the experience,
Sainte-Marie created the Cradleboard Teaching Project (www.cradleboard.org).
This year the project expanded beyond handouts and an Internet curriculum to
a multimedia CD-ROM based teaching aid. The CD-ROM incorporates science
lessons on friction and sound, for example, using examples from Native
American culture. It is geared toward children in fifth grade through middle
school. Most importantly, the program tackles what Sainte-Marie sees as a
problem in traditional education: presenting accurate information on Native
Americans. Sainte-Marie says her curriculum differs only in that it is
taught from a Native American perspective. The Cradleboard Teaching Project
pairs children at mainstream schools with peers at schools on American
Indian reservations.
[SOURCE: USAToday, 12/12 (10D), AUTHOR: Mara H. Gottfried]
(http://www.usatoday.com/usatonline/20001212/2907567s.htm)

INTERNET

HEALTH WEB SITES WILL FORM PRIVACY, ACCURACY POLICIES
Issue: Health/Internet
A group of 18 Internet health sites plan to jointly develop a "seal program"
aimed at helping consumers evaluate the avalanche of medical information
available on the Internet. The standards program would make it easier for
consumers to protect personal details they submit to certified
health-related Web sites and ensure they are getting accurate medical
information, according to the Internet health group. The certification
process would begin next year. The program comes at a time when the federal
government is more interested in establishing privacy and security standards
for computerized records. Hi-Ethics (name of the group) members include
America Online, drkoop.com Inc., Healthwise Inc., InteliHealth Inc.,
iVillage Inc., MedicaLogic/Medscape Inc. and WebMD Corp.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB976661495468846850.htm)
(requires subscription)

NEW MEDIA STREAMING INTO THE MAINSTREAM
Issue: Internet
While "streaming", the delivery of audio and video on the Internet, has been
around for a few years now, it doesn't appear to be replacing traditional
media forms any time soon. The main problem with streaming is network
congestion -- too many people trying to watch at the same time. But as
bandwidth increases this problem will ease. More and more people are growing
accustomed to watching or listening to important events on the Web. Mr.
Gillmor predicts that steaming media will allow companies and individuals to
create content aimed at highly discrete audiences, making for greater
consumer choice.
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
(http://www0.mercurycenter.com/svtech/columns/front/docs/dg121300.htm)

FILING ONLINE? IT MAY BE FREE
Issue: Internet
Just 28% of tax returns were filed electronically in 2000, but the IRS's
goal is to have 80% of tax returns e-filed by 2007. Several companies will
be offering Americans the opportunity to prepare and file taxes
electronically for free next year, which should help move the IRS towards
its goal. Electronic preparation and filing normally costs $10 to about $70,
depending on whether the taxpayer uses desktop software or cheaper Web-based
services
[SOURCE: USAToday (8B), AUTHOR: Thomas A. Fogarty]
(http://www.usatoday.com/usatonline/20001213/2911486s.htm)

E-COMMERCE

CORPORATE COALITION, OECD TO SIGN E-COMMERCE ACCORD
Issue: E-Commerce
An international coalition, led by media and technology companies is
expected Wednesday to sign alliances with the International Chamber of
Commerce and an advisory committee to the Organization for Economic
Cooperation and Development (OECD). The aim of the alliance is to draft
common approaches to e-commerce issues, an act that would pave the way for
greater international industrial cooperation in setting ground rules for
doing business online. The Global Business Dialogue on Electronic Commerce
(GBDE) has been lobbying governments and international agencies on Internet
taxation, privacy, intellectual-property rights and other related matters
since its formation in 1998. In recent years, the International Chamber of
Commerce has helped update private-sector standard practices, such as
commercial contracts, to fit the demands of e-commerce. For its part, the
OECD has worked to increase coordination among its member states, which
include the world's wealthiest countries, on issues including online
taxation and privacy. While GBDE claims some success in influencing
government policies, it drew criticism this fall from U.S. and European
officials for not pushing stringent enough consumer-privacy guidelines for
the Internet.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Kevin J. Delaney]
(http://interactive.wsj.com/articles/SB976660670524066714.htm)
(requires subscription)

WIRELESS

MAJORITY OF U.S. HOUSEHOLDS NOW HAVE MOBILE PHONES
Issue: Technology
For the first time, a majority of U.S. households has at least one mobile
phone, according to a new study. The survey by Dataquest, a unit of the
Gartner Group, found some 52 million U.S. households, or about 51 percent of
the total, owned a mobile phone in February, up sharply from 32 percent in
October 1999. The Western region of the U.S., including California, and the
South Atlantic, including Washington, D.C., showed the highest rate of
ownership at 53 percent. The New York and New England areas trailed the rest
of the country, with just 46 percent of households owning mobile phones,
according to the survey. The data were based on a representative survey of
40,000 individuals, Dataquest said.
[SOURCE: New York Times, AUTHOR: Reuters]
(http://www.nytimes.com/reuters/technology/tech-telecoms-mobilep.html)
(requires registration)

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

Communications-related Headlines for 12/12/00

SPECTRUM
U.S. Set to Start Airwave Auction (WP)

MERGERS
AOL Deal's Opponents Mobilizing (WP)
AOL-Time Warner Access Accord Draws
Criticism From Small ISPs (WSJ)

TELECOM
Talks for Stake in Japan Telecom (NYT)
1996 Telecommunications Act Creates
Obstacles for Women and Minorities (NYT)

INTERNET
Voice Web Portal Business Moving into e-Commerce (NYT)

E-PUBLISHING
Draconian Content Controls Are
Real Horror of Today's E-Books (WSJ)

SPECTRUM

U.S. SET TO START AIRWAVE AUCTION
Issue: Auctions
Today begins the FCC's long-anticipated auction of a slice of spectrum that
will give some company(ies) the rights to transmit mobile-telephone calls
and Internet data in metropolitan areas to more than 165 million people. The
spectrum auction could fetch as much as $20 billion for the federal
government according to some estimates "Spectrum is kind of like real
estate: You can't make more of it, so it always goes up in value," said Ken
Hyers, a wireless communications analyst with Cahners In-Stat Group. "If a
company buys it, unless they do something spectacularly stupid, they can't
lose." More than three-quarters of the spectrum was claimed five years ago
for $4.8 billion by now-bankrupt NextWave Communications. After the company
failed to make its payments, the FCC canceled its licenses. The airwaves
being auctioned today can be used for 3G wireless applications, but are not
limited to that purpose.
[SOURCE: Washington Post (E01), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/articles/A56058-2000Dec11.html)

MERGERS

AOL DEALS'S OPPONENTS MOBILIZING
Issue: Mergers
Opponents of AOL's acquisition of Time Warner are mobilizing to persuade
antitrust enforcers to attach tough conditions to the deal. The American
Civil Liberties Union said it is set to meet with commissioners on
Wednesday. Small and mid-size Internet service providers from Florida to
Wisconsin are contacting commissioners by telephone, e-mail and letter, and
some representatives may come to Washington to meet with them this week.
Some consumer groups said they have appointments with commissioners today.
The FTC also invited Microsoft to weigh in on the merger, sources said.
Microsoft has repeatedly raised concerns about the deal. "We've had a
dialogue with the [FTC] staff," said a Microsoft spokesman.
[SOURCE: Washington Posit (E01), AUTHOR: Alec Klein]
(http://washingtonpost.com/wp-dyn/articles/A56055-2000Dec11.html)

AOL-TIME WARNER ACCESS ACCORD DRAWS CRITICISM FROM SMALL ISPS
Issue: Open Access
Members of a coalition of small- and medium-size Internet services providers
(ISPs) have scheduled meetings to tell top Federal Trade Commission
officials that the agreement between EarthLink and AOL-Time Warner isn't a
good model for other open-access agreements. EarthLink's deal doesn't fit
smaller providers, said Stephen Heins, director of marketing for a Wisconsin
ISP with 2,500 residential and 250 business customers. Small providers lack
the advertising and e-commerce revenue garnered by EarthLink. Instead, most
rely solely on subscriber revenue. Dave Baker, EarthLink's vice president
for law and public policy, said the terms EarthLink struck with Time Warner
Cable "could be used by other ISPs to negotiate access. We have not
compromised their ability to do so. We have enhanced it. With the FTC
reviewing their merger, Time Warner had an incentive to negotiate a fair
deal with us."
[SOURCE: Wall Street Journal (B10), AUTHOR: Mark Wigfield]
(http://interactive.wsj.com/articles/SB976571389348939723.htm)
(subscription required)

TELECOM

TALKS FOR STAKE IN JAPAN TELECOM
Issue: International
The Vodafone Group is in talks to buy 15 percent of Japan Telecom for about
$2.5 billion in a move that would give it an edge over its rival British
Telecommunications as the two maneuver for greater control of the company,
Japan's third-largest telecommunications operator, people involved in the
discussions say. Such a deal could place Vodafone in a stronger bargaining
position as AT&T prepares to divest itself of its 10 percent stake in Japan
Telecom after an agreement last month for NTT DoCoMo Inc., Japan's largest
mobile phone company, to take a 16 percent stake in AT&T Wireless. British
Telecommunications is in discussions with AT&T about buying that stake, but
nothing has been decided, a person close to the British company said. An
agreement with Japan Telecom would be the latest deal to give Vodafone an
edge over its British rival. In September, Vodafone took control of Airtel
Movil S.A., the Spanish mobile phone company, in which British Telecom has a
minority stake.
[SOURCE: New York Times, AUTHOR: Suzanne Kapner]
(http://www.nytimes.com/2000/12/12/technology/12PHON.html)
(requires registration)

1996 TELECOMMUNICATIONS ACT CREATES OBSTACLES FOR WOMEN MINORITIES
Issue: Telecom
The 1996 landmark law that was warmly embraced by the Clinton administration
and many Republicans as a way to begin deregulating the nation's
telecommunications industry has had the unintended effect of raising
substantial new barriers for companies controlled by minorities and women,
five studies commissioned by the federal government have found. The studies
show that the wave of consolidation in the broadcast, telephone and cable
industries prompted by the Telecommunications Act of 1996 created "nearly
insurmountable obstacles." The studies, to be released on Tuesday by the
Federal Communications Commission, conclude that barriers imposed by both
the government and the marketplace have taken a particular toll in
telecommunications, where the lifeblood is the government license to use a
part of the airwaves. In 1995, Congress eliminated a tax program intended to
encourage investment in small, minority- and women-owned telecommunication
companies. The FCC had earlier encouraged small businesses by permitting
them to bid in license auctions and make payments in installments. But after
some businesses defaulted on those loans, the rules were changed.
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2000/12/12/business/12BARR.html)
(requires registration)

INTERNET

VOICE WEB PORTAL BUSINESS MOVING INTO E-COMMERCE
Issue: Internet
The voice Web portal business is taking a first tentative step into
e-commerce, as Tellme Networks announced a deal with shopping site ShopTalk
to provide e-commerce services on the Tellme portal and to host that
company's voice business. The service will allow callers to browse a
Web-like menu of commerce options over the telephone, surfing through the
site using voice-recognition commands. Tellme is one of the largest
companies providing Web-like service over the telephone.
[SOURCE: CNET News.Com, AUTHOR: John Borland]
(http://www.nytimes.com/cnet/CNET_0_4_4101014_00.html)

E-PUBLISHING

DRACONIAN CONTENT CONTROLS ARE REAL HORROR OF TODAY'S E-BOOKS
Issue: Copyright
Early adopters of e-books are encountering a difficulty that goes beyond
finding the proper reader software or getting their $1 payment to Stephen
King: a hard-core pursuit of copyright protection that is crippling the
usefulness of e-book content. Users of peanutpress.com for example, will
find reasonably priced book, good software and a compelling list of content
choices. But, peanutpress.com users can't do some important things that
readers who purchased a physical copy of the book can do: underline or
highlight a passage of text or pass it along for others to benefit from. The
fair use clause of U.S. copyright statutes allow readers limited ability to
extract and use portions of a copyrighted work without needing to ask
permission of the copyright holder. But the book publishing industry is
panicked by the prospect of Napster-like copyright issues among handheld
e-book readers. "You have to remember that fair use is a right," says Carrie
Russell, copyright specialist with the American Library Association's
Washington office (www.ala.org). "It is a right inherent in copyright law.
You don't have to get permission."
[SOURCE: Wall Street Journal, AUTHOR: Lewis Perdue]
(http://interactive.wsj.com/articles/SB976486327467263073.htm)
(subscription required)

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

Communications-related Headlines for 12/11/00

MERGERS
FTC Nears Approval of AOL Merger (WP)

TELECOMMUNICATIONS
As AT&T Stock Slips, Takeover Rumors Swirl (USA)

INTERNET
A Fast-Changing Genie Alters the World (NYT)
Web ( at ) Work / U.S. Postal Service (WSJ)
Security adviser warns of cyberterrorism (USA)

COPYRIGHT
Copyright Office Directs Radio Stations To Pay For Music Broadcasts Via Web
(WSJ)

MERGERS

FTC NEARS APPROVAL OF AOL MERGER
Issue: Mergers
According to sources, a majority on the Federal Trade Commission is now
prepared to approve the takeover of Time Warner by America Online. The
formal vote is expected on Thursday of this week. The deal still has strong
opponents among competitors and consumer groups. Some opponents have
meetings scheduled with FTC commissioners this week in hopes of persuading
them to block the deal in court.
An FTC spokesman warned against trying to predict the FTC's vote, however.
Spokesman Eric London said, "Speculation over how the commission is going to
vote is a ridiculous parlor game. Until the commission votes, the tea-leaf
reading is just that." AOL and Time Warner officials have also declined to
comment.
[SOURCE: The Washington Post (A01), AUTHOR: Alec Klein]
(http://washingtonpost.com/wp-dyn/articles/A52758-2000Dec10.html)

TELECOMMUNICATIONS

AS AT&T'S STOCK SLIPS, TAKEOVER RUMORS SWIRL
Issue: Telecommunications
Is an AT&T takeover in sight? Could the buyer be one of the baby bells? With
AT&T's stock at an eight-year low and the company awash with uncertainty
that could drive it lower, some industry observers and investors are
wondering if Ma Bell's bargain-basement price will prompt a takeover.
Offspring from the 1984 breakup of the Bell System, which include SBC
Communications, Verizon Communications and BellSouth Corp., have higher
market capitalizations than AT&T, and each has some spending money to buy
its parent. SBC, San Antonio, boasts the strongest currency, with a market
value of about $180 billion. It is followed by New York-based Verizon's
about $150 billion market cap and Atlanta-based BellSouth's $80 billion
valuation. AT&T has lost nearly $100 billion in market valuation since
January, and now is valued at around $75 billion. It has a crushing $62
billion debt load. AT&T has declined to comment on the possibility of any
takeover.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Deborah Solomon]
(http://interactive.wsj.com/articles/SB976483701280382049.htm)
(subscription required)

INTERNET

A FAST-CHANGING GENIE ALTERS THE WORLD
Issue: Internet and Society
[Essay] This essay leads off a collection of articles in today's NYT on the
first seven years of the World Wide Web. Markoff, in "Genie" explores the
nature of the new medium, the business and technical environment that
contributed to its adoption and metamorphoses and the software and hardware
technologies that will push the Web into new incarnations. Other articles in
the series touch on news media, online communities, entertainment, and
business and the economy.
[SOURCE: New York Times (C1), AUTHOR: John Markoff]
(http://www.nytimes.com/2000/12/11/technology/11WEB.html)
(registration required)

WEB ( at ) WORK / U.S. POSTAL SERVICE
Issue: Internet
In its 225-year history, the U.S. Postal Service has successfully fended off
rain, snow, heat and even gloom of night to complete its rounds. But the
Internet could be a different story. Under one scenario outlined in the
Postal Service's five-year fiscal plan, about half of the bills and payments
currently sent through the mail would eventually be replaced by electronic
versions. Partly to head off that apocalyptic forecast, the Postal Service
formed eBillPay, its own online bill-paying system that lets anyone with a
checking account view bills from companies like mortgage lenders and utility
providers, set up payment schedules, and authorize money transfers. When a
company or individual can't receive an electronic payment, the Postal
Service will print and mail a paper check instead. EBillPay has its critics,
who say the Postal Service has overstepped its charter. The U.S. Internet
Industry Association, a trade organization and lobbying group, has been
pushing legislators and a congressional oversight committee to examine
eBillPay. The Postal Service also risks a backlash from banks, which have
invested in online bill-payment systems. For now, the Postal Service is
shaking off opposition. "We've been in the bill-presentment and payment
service since the beginning," Mr. Frey says. "It seems very logical to us to
continue to do what we've always done."
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Case Study]
(http://interactive.wsj.com/articles/SB976484343598964089.htm)
(subscription required)

SECURITY ADVISER WARNS OF CYBERTERRORISM
Issue: Internet
A digital 'Pearl Harbor' is imminent, and the nation's next president should
shore up the government's computer security to prevent it, according to a
warning issued Friday by the nation's top cyberspace official. ''It may be
improbable that cyberspace can be seriously disrupted, it may be improbable
that a war in cyberspace can occur, but it could happen,'' Richard Clarke of
the National Security Council said at a Microsoft-organized conference. He
warned the next president that on coming to office, he would find that
several nations have created information-warfare units, enough to bring down
computer networks. "Some are doing reconnaissance today on our networks,
mapping them,'' he said. He recommended that the next president should
appoint a government-wide chief information officer, with authority to
oversee all the government's computer security, and whose appointment would
need confirmation from Congress. Another way to improve security throughout
the Internet is to create secure lines of communication between the
technology industry and the government, Clarke said. That way, they could
share information about hackers and viruses without worrying about the
public learning about it.
[SOURCE: USA Today (Interactive), AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/cti892.htm)

COPYRIGHT

COPYRIGHT OFFICE DIRECTS RADIO STATIONS TO PAY FOR MUSIC BROADCASTS VIA WEB
Issue: Copyright
Federal regulators said radio stations putting their programming online
should pay royalties to record labels, a decision that helps even the
competition between traditional broadcasters and Web-only outfits. The
ruling by the U.S. Copyright Office means that radio stations will pay the
same royalty rates to the labels as companies that only stream their music
over the Internet. The radio concerns currently don't pay record labels for
their broadcasts over the airwaves, and had argued that they also shouldn't
pay when they put the same programs out on the Web. The Copyright Office
ruling is a step toward creating a regulatory structure for the nascent
Web-music business, which is tangled in legal and regulatory disputes over
how intellectual-property rights should work online.
[SOURCE: Wall Street Journal (B12), AUTHOR: Anna Wilde Mathews]
(http://interactive.wsj.com/articles/SB976485726492649216.htm)
(subscription required)

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Communications-related Headlines for 12/08/00

MERGERS
No More Concessions, AOL, Time Warner Tell U.S. (WP)

Spectrum
Wireless Licenses Expected to Raise $15 Billion For US (NYT)
Brazil Still Optimistic on Phone Auctions (NYT)

INTERNET
Are Parents Legally Responsible for their Children's' Internet Use
(NYT)

TELEPHONY
Regulators Move To Extend Area Codes' Use
By Curbing Issue Of New Phone Numbers (WSJ)

MERGERS

NO MORE CONCESSIONS, AOL, TIME WARNER TELL U.S.
Issue:
America Online and Time Warner have made what they consider their last and
best offer to U.S. antitrust enforcers as the two sides near the end of
their negotiations over the companies' proposed merger. AOL and Time Warner
officials apparently have lost some patience with the government, telling
the Federal Trade Commission that they will budge no further, sources said.
During the negotiations, the FTC asked the companies to agree to allow a
rival Internet provider to offer its service over Time Warner's high-speed
cable television network. The FTC wants to maintain consumer choice and fair
prices among Internet service providers by ensuring that AOL's rivals have
nondiscriminatory access to Time Warner's cable system, which covers about
20 percent of the market. According to reliable sources, the FTC in turn has
informed the companies that they expect the five-member commission to vote
on the $183 billion merger next week.
[SOURCE: The Washington Post (E01), AUTHOR: Alec Klein]
(http://washingtonpost.com/wp-dyn/articles/A41011-2000Dec7.html)
See Also
AOL, TIME WARNER PLAN STOCK OPTIONS FOR ALL EMPLOYEES OF COMBINED FIRM
[SOURCE: Wall Street Journal (B2), AUTHOR: Martin Peers And Julia Angwin]
(http://interactive.wsj.com/articles/SB976234635921380880.htm)

SPECTRUM

WIRELESS LICENSES EXPECTED TO RAISE $15 BILLION FOR US
Issue: Spectrum
Next week the government will open an auction for the airwaves - or, at
least the spectrum for wireless communications. Already expected to become
the largest auction ever held by the federal government, the government is
preparing for what could end up being an auction worth more than $15
billion. The auction will be of 422 licenses in 195 markets, including some
of the largest and most attractive. For the large carrier, like AT&T
Wireless and Sprint PCS to fill in gaps in their service areas. "If you look
at the 15 largest markets, that's where the true battle will be," said Eric
Kintz, an associate partner in charge of the e-commerce and
telecommunications practice at Roland Berger, a management consulting firm.
"You won't reach the crazed prices that Europe reached, especially in the
United Kingdom and Germany. But you will see much more aggressive bidding in
those markets." The previous 30 auctions held by the Federal Communications
Commission throughout the last decade together produced total bids of no
more than $25 billion.
[SOURCE: New York Times (C01), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2000/12/08/technology/08SPEC.html)
(requires registration)

BRAZIL STILL OPTIMISTIC ON PHONE AUCTIONS
Issue: Spectrum
Despite waning interest in cellular phone licenses around the globe, the
Brazilian government hopes to raise at least $3.4 billion over the next
three months by selling nine licenses to offer mobile phone services. The
minimum prices on the licenses range from $273 million to $510 million,
depending on the area and the band. Although many analysts consider the
minimum bids high, the government is counting on carriers that do not yet
have a presence in Brazil, like Vodafone of Britain, to bid up the prices.
Industry experts also expect Brazil's fixed-line operators, especially local
companies owned by Telef

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