March 2001

Communications-related Headlines for 3/06/01

DIGITAL DIVIDE
Brazil Attacks Digital Divide With $300 Volkscomputer (WSJ)
Putting Faith in the Net, Church Plans to Wire (WSJ)

SATELLITES
Intelsat Moves to New Orbit (WP)

DIGITAL DIVIDE

BRAZIL ATTACKS DIGITAL DIVIDE WITH $300 VOLKSCOMPUTER
Issue: Digital Divide
Late last year the government of Brazil commissioned the Federal University
of Minas Gerais to design a low-budget machine as a response to worries
about worsening the country's social and economic inequalities by starving
the poor of information technology. Now, a prototype is ready and later
this year, once software glitches have been smoothed out, the government
plans to install the stripped-down machines in public schools and sell them
to low-wage earners on installment for as little as $15 a month.
Installation in public schools alone will give Internet access to seven
million children. The computers have no hard drives, floppy disks, or
Windows. Each machine, however, will have a modem, a color monitor,
speakers, a mouse and simple Internet-browsing software, and have to be
modular so users could later add a printer or disk drives. "If everything we
are planning becomes reality, and we manage to produce this at 600 reals
[US$300] per unit, we will be creating a new base of some millions of new
computer users in Brazil," said Ivan Moura Campos, the project's mastermind.
"What we did was imagine a PC and strip off the fat."
[SOURCE: Wall Street Journal (Online), AUTHOR: Associated Press]
(http://interactive.wsj.com/articles/SB983829533844067393.htm)
(requires subscription)

PUTTING FAITH IN THE NET, CHURCH PLANS TO WIRE PHILIPPINE VILLAGES
Issue: Digital Divide
In a remote Philippines island called Samar, the connection to the outside
world is a Catholic matter. The church plans to set up Internet centers in
79 dioceses across this nation of 7,000 islands, to join aid groups, private
firms and governments at the forefront of connecting rural areas in
developing countries. The unusual scope of the project illustrates how
technology can drive old religions to reshape themselves to fit a new age.
In attempting to cope with online pornography and violent games, while at
the same time trying not to exclude non-Catholics from its initiative, the
church has had to become decidedly pragmatic to meet its goals. "I really
think that the rural areas should benefit from what we do in urban areas,"
says Monsignor Pedro Quitorio. He adds that the church is in the Internet
business by default, connecting the country's rural corners simply because
nobody else is. The private sector has little interest in low-density areas
such as Samar, and any national tech agendas have been overshadowed by the
corruption scandal that recently led to President Joseph Estrada's ouster.
[SOURCE: Wall Street Journal (Online), AUTHOR: Sofia Mcfarland]
(http://interactive.wsj.com/articles/SB983804247150232898.htm)
(requires subscription)

SATELLITES

INTELSAT MOVES TO NEW ORBIT
Issue: Satellite
Born of the Communications Satellite Act of 1962, for decades Intelsat was
the only U.S. satellite link to the rest of the world. At first a show of
political and technological power by the Kennedy administration, Intelsat
soon became a critical piece of the broadcasting infrastructure. Intelsat
beamed the live pictures from Neil Armstrong's 1969 moonwalk and, starting
in 1972, from the Olympics. Today however, Intelsat no longer is the
dominant satellite player in the field - it is only a single player in the
competition for worldwide high-speed digital communications. On July 18,
Intelsat will once again reinvent itself as a private company with plans to
sell stock to the public within a year. Analysts believe the company's
history and scope position it well for the move. Intelsat has a reach of 214
countries and clients such as AT&T Corp., WorldCom Inc., France Telecom,
British Telecommunications PLC, and Cable News Network.
[SOURCE: Washington Post (E01), AUTHOR: Yuki Noguchi]
(http://washingtonpost.com/wp-dyn/articles/A27528-2001Mar5.html)

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

Communications-related Headlines for 3/05/01

OWNERSHIP
Court Overturns FCC's Ownership Caps, In Victory for AT&T, AOL,
Cable Firms (WSJ)
Court Decision To Overturn FCC Cable TV Limits (CU)

INTELLECTUAL PROPERTY
Judge Starts the Process Of Silencing Napster Site (WSJ)

BROADCASTING
McCain Introduces New Pro-LPFM Legislation (MAP)
Consumer Groups Blast Broadcasters for Failure on Digital Television
(CFA)

INTERNET
AOL Blasts Cybersmear Suits As a Threat to Free Speech (WSJ)

OWNERSHIP

COURT OVERTURNS FCC'S OWNERSHIP CAPS, IN VICTORY FOR AT&T, AOL, CABLE FIRMS
Issue: Ownership
The U.S. Court of Appeals for the District of Columbia Circuit handed a
huge victory to AT&T, AOL Time Warner and other cable television operators,
by overturning ownership regulations aimed at promoting a diversity of
voices in cable and satellite television markets. The Court ruled that
federal regulations preventing companies from serving more than 30% of the
nation's total cable or satellite television markets violate the companies'
free speech rights under the First Amendment of the U.S. Constitution. In
it's ruling, the Court wrote that the "FCC has not met its burden under the
First Amendment and, in part, lacks statutory authority for its actions."
The judges overturned the regulations and sent them back to the agency to be
rewritten. Many analysts expect the FCC to issue new rules allowing
companies to control more than 30% of the total pay television market, which
could set off a wave of consolidation in the cable-television industry.
[SOURCE: Wall Street Journal (A3), AUTHOR: Yochi J. Dreazen And Deborah
Solomon]
(http://interactive.wsj.com/articles/SB983551786370550019.htm)
(requires subscription)
See Also:
COURT DECISION TO OVERTURN FCC CABLE TV LIMITS
Issue: Ownership
Following the U.S. Court of Appeals decision to reversed the Federal
Communications Commission (FCC)'s limits on cable TV ownership that provide
a cable company cannot have an interest in more than 30 percent of U.S.
cable systems, Gene Kimmelman, Co-Director of Consumers Union's Washington
DC Office, made the following statement: "This is an enormous loss and a
devastating blow to consumers. It enables cable monopolies to consolidate
further and expand their dominance of the television market by owning more
cable systems and putting more of their own programming on those systems."
The court also reversed the programming limits that provide that no more
that 40 percent of the programming on a cable operator's system can be
affiliated with the system's owner.
[SOURCE: Consumers Union]
(http://www.consumersunion.org/telecom/cabledc301.htm)

INTELLECTUAL PROPERTY

JUDGE STARTS THE PROCESS OF SILENCING NAPSTER SITE
Issue: Intellectual Property
A federal court judge has started the process of forcing Napster to remove
millions of song titles from its computers, what amounts to the beginning of
the end for the freewheeling music downloading service. With its legal and
financial future increasingly bleak, Napster is pinning its hopes for
survival on a long shot public-relations campaign in which it portrays
itself as rightful but persecuted heir to the online music revolution. On
Friday, Napster attorney David Boies beseeched the judge to take a cautious
technical approach in her order. But even Napster's own proposal calls for
it to soon stop listing millions of song titles in its databases. Napster
executives also said Friday that the company would begin blocking some songs
this past weekend -- a step the company has insisted on many prior occasions
was technically impossible.
[SOURCE: Wall Street Journal (B6), AUTHOR: Lee Gomes]
(http://interactive.wsj.com/articles/SB983552729122811362.htm)
(requires subscription)
See Also:
HOLLYWOOD PUTTING THE SQUEEZE ON CONSUMERS
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
(http://www.siliconvalley.com/docs/opinion/dgillmor/dg030401.htm)

BROADCASTING

MCCAIN INTRODUCES NEW PRO-LPFM LEGISLATION
Issue: Radio
Senator John McCain (R-AZ) has submitted pro LPFM legislation (S.404),
known as the "Low Power Radio Act of 2001." The bill would reverse
anti-low-power FM radio language that was added to an appropriations bill
last year.
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/programs/lpfm/index.html#lpra2001)

CONSUMER GROUPS BLAST BROADCASTERS FOR FAILURE ON DIGITAL TELEVISION
Issue: DTV
The Consumers Union and the Consumer Federation of America have called on
Congress to take back the $70 billion gift of the digital spectrum that was
given to television broadcasters five years ago. The groups say recommend
that the licenses be auctioned off, with the proceeds going to a trust fund
to support the creation of "locally developed civic, public interest and
culturally relevant content."
[SOURCE: Consumer Federation of America]
(http://www.consumerfed.org/releases.html)

INTERNET

AOL BLASTS CYBERSMEAR SUITS AS A THREAT TO FREE SPEECH
Issue: Internet
AOL Time Warner wants to help chill the rash of defamation lawsuits against
people who post anonymous messages on the Internet. In a legal filing, AOL
Time Warner blasts these lawsuits as an abuse of the legal system and says
they threaten to curtail free speech on the Internet. This is the first time
that AOL or any message-board operator has legally weighed in on the
contentious debate over whether there should be limits to what people can
say on the Internet -- often hiding behind the veil of anonymity. AOL argues
that the legal threshold for these lawsuits and for unmasking the identities
of the posters who are being sued should be raised to protect their First
Amendment rights. "These suits can constitute an illegitimate use of the
courts to silence and retaliate against speakers whose statements, while
unpleasant from the standpoint of the [plaintiff], were not unlawful," AOL
says in its brief.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Aaron Elstein]
(http://interactive.wsj.com/articles/SB98356505635637430.htm)
(requires subscription)

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

Communications-related Headlines for 3/02/01

PRIVACY
Privacy's Guarded Prognosis (NYT)
WebMD Dispute With Quintiles Over Data Goes to a U.S. Court (WP)
Privacy in the Commercial World (House)

INTERNET
In Napster Case, Industry Hears Its Future (WP)
VeriSign to Cut Back Web Domain Control (WP)

TELEVISION/FILMS
Stan Margulies Dies; Produced TV Miniseries 'Roots,' 'Thorn Birds'
(LAT)
Negotiations Between Writers and Hollywood Studios Falter (NYT)

TELEPHONY
Consumer Groups Urge FCC To Deny Verizon Long-Distance Application
In Massachusetts (CU)

PRIVACY

PRIVACY'S GUARDED PROGNOSIS
Issue: Privacy
Now, as medical records like prescription information and laboratory test
results are increasingly kept on computer networks, the question of
individual privacy looms large. The federal government is moving to deal
with the concern that medical information could be used to deny insurance
coverage, or even employment, to someone. Until now, there has been no
comprehensive federal regulations governing patient privacy, only state
laws. New federal rules, developed by the Clinton administration and
scheduled to go into effect on April 14, will give patients the right to get
copies of their medical records, request corrections and also require health
care providers to get written consent from patients for sharing information
in their medical records. Yesterday, Tommy G. Thompson, the new secretary of
health and human services, reopened the issue for public comment as a result
of arguments from that health care industry that compliance would require
costly administrative changes.
[SOURCE: New York Times (Online), AUTHOR: Katie Hafner]
(http://www.nytimes.com/2001/03/01/technology/01MEDI.html)
(requires registration)

WEBMD DISPUTE WITH QUINTILES OVER DATA GOES TO A U.S. COURT
Issue: Privacy
WebMD (www.webmd.com), citing patient-privacy concerns, has asked a federal
court to back its decision to stop providing health-claims data to Quintiles
Transnational, which repackages the information for sale to drug companies
and other clients. WebMD stopped sending data to Quintiles on Saturday. On
Sunday, Quintiles obtained a temporary restraining order that forced WebMD
to resume the flow of information. The dispute centers around agreement by
WebMD to provide certain data to Quintiles as part of WebMD's acquisition of
Quintiles' Envoy Corp. unit. Envoy, a clearinghouse, processes millions of
medical, pharmacy and other claims over a private electronic network. The
data is used by Quintile's partners to assess the popularity of various
drugs and the conditions for which the drugs are prescribed. Envoy claims
that the data is stripped of details that could link it to a specific
patient. WebMD disagrees. In some cases, WebMD claims, the data can be
combined with other databases to identify a specific persons. The data
includes dates of birth, sex and nine-digit ZIP Codes.
[SOURCE: Wall Street Journal (B6), AUTHOR: Ann Carrns]
(http://interactive.wsj.com/articles/SB983488840511523149.htm)
(Subscription Required)

PRIVACY IN THE COMMERCIAL WORLD
Issue:
On March 1, the U.S. House of Representatives Committee on Energy and
Commerce held its first hearing on privacy in the 107th Congress. Archived
audio broadcast of "Privacy in the Commercial World" is available.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/hearings/0301200143/03012001.htm)
See Also:
TESTIMONY AND STATEMENT FOR THE RECORD OF MARC ROTENBERG, EPIC EXECUTIVE
DIRECTOR
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

INTERNET

IN NAPSTER CASE, INDUSTRY HEARS ITS FUTURE
Issue: Copyright
While the music industry and Napster battle over issues of copyright
infringement of the online service, other industry interests worry that
Napster's demise could further depress an already weak market for computer
gear -- or even stifles the growth of the Web itself. Napster's popularity
helped generate interest in a wide range of new computer products in recent
months. Everything from Computer CD burners to the newly minted appliance,
portable MP3 players, have benefited from Napster's availability. The
Consumer Electronics Association is so concerned about an adverse ruling for
Napster that its has filed legal papers supporting the Web service. Some are
even attributing the a growth in DSL Internet service to Napster, in part
because broadband access makes it possible to fetch song files far faster
than with dial-up modems. "We believe that if you take Napster out of the
mix, you basically stunt the growth of DSL and cable modems," said Ford
Cavallari, e-commerce analyst for Adventis, an Internet research firm.
[SOURCE: Washington Post (E01), AUTHOR: Christopher Stern]
(http://washingtonpost.com/wp-dyn/articles/A10875-2001Mar1.html)

VERISIGN TO CUT BACK WEB DOMAIN CONTROL
Issue: Internet
VeriSign has struck a deal that will allow the company to continue selling
.com, .net and .org Web addresses but limits its role as in maintaining the
world's master database of Internet domains. The Clinton administration in
1999 pushed the company to choose between selling Web names to individuals
and businesses or managing the central database of these addresses. The
company, working under a May 10, 2001 deadline, decided to give up
management of the .org database by December 2002 and to continue maintaining
the .com database until 2007 and the .net database until 2006. "We believe
on balance this is a good deal for the Internet," said Michael Roberts,
ICANN's chief executive. The proposal must be approved by ICANN, the
VeriSign boards and the U.S. Department of Commerce.
[SOURCE: Washington Post (E06), AUTHOR: Dina ElBoghdady]
(http://washingtonpost.com/wp-dyn/articles/A11766-2001Mar1.html)

TELEVISION/FILMS

STAN MARUGLIES DIES; PRODUCED TV MINISERIES 'ROOTS'
Issue: Television
Producer Stan Margulies died at the age of 80 of lung cancer Feb. 27.
Margulies's career as a producer included the historic miniseries "Roots"
and "The Thorn Birds." Margulies sought out projects that dealt with serious
issues of social conscience, producing such films as "Separate But Equal"
about the Brown vs. Board of Education case that cleared the way for school
desegregation, "Roots", and "I Will Fight No More Forever," a 1975
made-for-TV movie chronicling the U.S. Army's war with, and broken promises
to, the Nez Perce Indian Nation. Margulies also produced the favorite, Willy
Wonka and the Chocolate Factory."
[SOURCE: Los Angeles Times, AUTHORS: Lowry and King]
(http://www.latimes.com/news/state/20010301/t000018311.html)

NEGOTIATIONS BETWEEN WRITERS AND HOLLYWOOD STUDIOS FALTER
Issue: Jobs
Negotiations broke down Thursday between the Writers Guild of America and
representatives of the major studios and television networks, inching the
industry closer to the prospect of a long-dreaded strike that could
effectively shut down Hollywood. John Wells, the guild's president, said the
main issue hobbling the talks was money - specifically, the amount of money
writers will be paid in residuals for subsequent use of their work beyond an
initial theatrical run or television broadcast. For almost a year, Hollywood
has been fearing that a dual strike this summer by the 11,000 writers, whose
contract expires at midnight May 1, and the 135,000 members of the Screen
Actors Guild and the American Federation of Television and Radio Artists,
whose contract expires at midnight June 30, would shut down production on
virtually all movies and television programs.
[SOURCE: New York Times (C1), AUTHOR: Rick Lyman]
(http://www.nytimes.com/2001/03/02/business/02STUD.html)
(requires registration)

TELEPHONY

CONSUMER GROUPS URGE FCC TO DENY VERIZON LONG-DISTANCE APPLICATION IN
MASSACHUSETTS
Issue: Telephony
The Consumer Federation of America and the Massachusetts Consumer Coalition
urged the Federal Communication Commission should reject Verizon's bid for
a long distance license because local Massachusetts markets are not yet open
to real competition.
[SOURCE: Consumer Federation of America]
(http://www.consumerfed.org/releases.html)

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

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March 2001

Communications-related Headlines for 3/06/01

Communications-related Headlines for 3/05/01

Communications-related Headlines for 3/02/01