April 2001

Communications-related Headlines for 4/13/01

INTERNET
Law Professor Sees Hazard in Personalized News (NYT)
McCain: Compromise Possible In Internet Tax Debate (WP)

TELEPHONY
FCC Is Set to Reduce Fees Paid by Bells To Competitors to Complete
Online Calls (WSJ)

TELEVISION
Stations Adopting Digital TV Slowly (SJM)

INTERNET

LAW PROFESSOR SEES HAZARD IN PERSONALIZED NEWS
Issue: Internet
In his new book Republic.com, Cass R. Sunstein, a professor at the
University of Chicago Law School, argues that the Internet's ability to let
people customize their media experience might actually pose a threat to
democracy. "Democracy requires at least two things: that people have common
spaces where they can share experiences some of the time, and that people
have unanticipated, un-chosen exposures to ideas and other people," said
Sunstein. He fears that general interest publications are at risk of being
overwhelmed by passive consumers who live in Internet-filtered information
cocoons.
[SOURCE: New York Times, AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/2001/04/13/technology/13CYBERLAW.html)
(requires registration)

MCCAIN: COMPROMISE POSSIBLE IN INTERNET TAX DEBATE
Issue: Internet
Senate Commerce Committee Chairman John McCain, R-Ariz., is trying to
rally support to extend the moratorium on new Internet taxes, but
acknowledges that passage likely will happen only as part of a compromise
that includes broadening the states' authority to collect existing sales
taxes on Internet transactions. McCain, who is not a fan of expanding the
states' collection authority, seems willing to concede some ground if states
and localities take some steps to simplify their tax schemes. Those who
oppose extending the moratorium say it is unfair to tax items only when they
are purchased over the counter. "There is no sound tax policy that supports
a tax being collected on a shirt or a music recording or computer sold
through a local store, but not collected when the same product is sold by
mail order or through the Internet," Elizabeth Harchenko, director of the
Oregon Department of Revenue and chair of the Multistate Tax Commission,
told the panel.
[SOURCE: Washington Post, AUTHOR: Kerry Gildea]
(http://www.washtech.com/news/regulation/8979-1.html)

TELEPHONY

FCC IS SET TO REDUCE FEES PAID BY BELLS TO COMPETITORS TO COMPLETE ONLINE
CALLS
Issue: Telephony
The FCC is expected to cut the amount of money phone companies have to pay
competitors for completing Internet-bound calls by as much as 67% over three
years. The move, coming after years of debate, could save the Bells more
than $2 billion a year. The regulations affect the phone calls Bell
customers make to popular Internet service providers such as EarthLink or
America Online, many of which are served by Bell competitors such as Focal
or Pac-West Telecomm. Competitors fear that the FCC move could pose a
serious threat to their industry.
[SOURCE: Wall Street Journal, AUTHOR: Yochi J. Dreazen]
(http://interactive.wsj.com/articles/SB987131058167867378.htm)
(requires subscription)

TELEVISION

STATIONS ADOPTING DIGITAL TV SLOWLY
Issue: Television
President Bush this week included in his federal-government budget proposal
a provision that would give broadcasters financial incentives to spur the
transition to digital television. In 1996, Congress gave the nation's
television broadcasters new blocks of airwaves, valued at as much as $70
billion, to begin broadcasting their programming in digital format. It set a
2006 target for completing the switch, at which time the broadcasters would
turn off their analog channels. Under Bush's proposal, stations that
continue to broadcast in analog would have to pay fees totaling $200 million
a year. "The pressure is starting to build'' on the broadcasters, said
Andrew Schwartzman, president of the Media Access Project, a non-profit law
firm that tracks media issues. "There are other users with political clout
and incentive to get their mitts on this spectrum.' 'So far, only 186 of the
nation's 1,600 TV stations are broadcasting in digital format.
[SOURCE: San Jose Mercury News, AUTHOR: Heather Fleming Phillips]
(http://www.siliconvalley.com/docs/news/svfront/digtv041301.htm)

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

Communications-related Headlines for 4/12/01

BUDGET
Bush Budget Is Mixed Bag For Lawmakers, Tech Industry (WP)

INTERNET
AT&T Faces Some Hurdles As Its DSL Plans Gain Speed (WSJ)
Notice of a Cooperative Agreement with EDUCAUSE for Management of
.edu Domain (NTIA)

MERGER
Monitor Trustee to Make Sure AOL Time Warner Plays by the Rules (WP)

VIDEO
State of the Art: Videodiscs With You as Director (NYT)

BUDGET

BUSH BUDGET IS MIXED BAG FOR LAWMAKERS, TECH INDUSTRY
Issue:
The Bush administration's proposed budget for fiscal year 2002 has received
mixed reactions from both Congress and the high-tech industry. The high-tech
community is generally pleased by the increased spending on math and science
education programs, including a $200 million expansion of the National
Science Foundation's Math and Science Partnership. But the administration
has received criticism for proposed cuts in funding for research and
development at the Commerce Department, including a 30 percent reduction at
the National Telecommunications and Information Administration's Technology
Opportunities Program, and elimination of funding for the Advanced
Technology Program (ATP), a publicly and privately funded program to foster
new technologies. On the hill, House Energy & Commerce Committee Chairman
Rep. W. J. "Billy" Tauzin, R-La., said he feared the budget proposal would
endanger changes he has promised to bring to the Federal Communications
Commission (FCC), such as upgrading outdated engineering capabilities.
[SOURCE: Washington Post (WashTech), AUTHOR: Brian Krebs]
(http://www.washtech.com/news/regulation/8923-1.html)

INTERNET

AT&T FACES SOME HURDLES AS ITS DSL PLANS GAIN SPEED
Issue: Broadband
AT&T has recently stepped up plans to use digital-subscriber-line (DSL)
technology as a way to get voice and data services to consumers nationwide
with its purchase of assets from NorthPoint Communications. But, it turns
out, a little-noticed clause in a contract that AT&T signed earlier this
year with two big cable companies could prohibit the telecommunications
company from offering DSL in important parts of the country until June 2006.
AT&T's agreement with Cox Communications and Comcast prevents it from
offering high-speed Internet access to residential customers in the
territories served by the two cable companies. Industry observers said the
agreement is troubling since it could limit AT&T's market opportunity and
throw a roadblock in the path of a business that hasn't gotten off the
ground and faces its own separate set of challenges.
[SOURCE: Wall Street Journal, AUTHOR: Deborah Solomon]
http://interactive.wsj.com/articles/SB98702316563447234.htm
(requires subscription)

NOTICE OF A COOPERATIVE AGREEMENT WITH EDUCAUSE FOR MANAGEMENT OF .EDU
DOMAIN
Issue: Internet
The National Telecommunications and Information Administration (NTIA)
announces that it intends to enter into a cooperative agreement for the
management of the .edu domain name space with EDUCAUSE, an association that
focuses on networking and information technology needs of higher
education institutions. This cooperative agreement will facilitate policy
development and technical operations of the .edu domain
by a single responsible entity and provide a framework for the
administration of the .edu domain.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/frnotices/edunoi41101.htm)

MERGER

MONITOR TRUSTEE TO MAKE SURE AOL TIME WARNER PLAYS BY THE RULES
Issue: Merger
When America Online Inc. acquired Time Warner Inc. for $112 billion three
months ago, federal regulators put in place various safeguards to ensure
that the giant conglomerate would not stifle competition in the marketplace.
In its consent decree with the FTC, AOL agreed to abide by certain
conditions, such as opening its cable television network to rival Internet
service providers for high-speed access. Another of those safeguards was the
Federal Trade Commission's recent appointment of Dale N. Hatfield as the
monitor trustee overseeing the merger. Interview with Hatfield, former chief
of the office of engineering and technology at the FCC, appears at url
below.
[SOURCE: Washington Post, AUTHOR: Alec Klein]
(http://washingtonpost.com/wp-dyn/articles/A8190-2001Apr11.html)

VIDEO

STATE OF THE ART: VIDEODISCS WITH YOU AS DIRECTOR
Issue: Video
Technology now allows consumers to turn camcorder footage into high quality
DVD's without spending a fortune. Digital camcorders and editing software
have enabled people to create home movie masterpieces on there PCs. But,
until now, the only options available to most consumers has been either
dumping the final product onto a VHS tape, sacrificing 50 percent of the
digital quality in the process, or posting is to the Web. But with a new a
DVD burner from Pioneer, available for about $1,000 as internal unit for
modern Macs or Windows PC's, home movies can become digital blockbusters for
the anyone who wants a low-cost way to get videos to a larger audience.
[SOURCE: New York Times, AUTHOR: David Pogue]
(http://www.nytimes.com/2001/04/12/technology/12STAT.html)
(requires registration)

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

Communications-related Headlines for 04/11/01

EDTECH
Bandwidth Constraints Begin to Worry Schools (NYT)
A Universal Library (NYT)

BROADCASTING
On TV; Not One Big, Happy Family Anymore (LA)
FCC to Announces Filing Windows for Low Power FM (FCC)

EDTECH

BANDWIDTH CONSTRAINTS BEGIN TO WORRY SCHOOLS
Issue: EdTech
Although schools have made significant progress in the past few years by
getting connected to the Internet, they are certainly among those who would
like to upgrade to faster access. This is a concern for Jeff Ogden,
associate director at Merit Network Inc., a nonprofit corporation that
provides networking services for many of the K-12 schools in Michigan. "The
vast majority of schools that have Internet access have relatively small
levels of bandwidth," he said. Once challenge to increasing bandwidth is the
fact that schools must negotiate so many different goals competing for
limited technology budgets -- such as more computers, teacher training and
technical assistance. As a result, upgrading a school's network
infrastructure may take a back seat to other demands. "For some school
districts, higher speed access is a priority," Mr. Ogden said, "But not the
majority. I think we have a ways to go in terms of showing teachers how it
can be used effectively."
[SOURCE: New York Times, AUTHOR: Susan Stellin]
(http://www.nytimes.com/2001/04/11/technology/11EDUCATION.html)
(requires registration)

A UNIVERSAL LIBRARY
Issue: Spectrum
[Op-Ed} Lawrence Grossman, former president of NBC News and PBS, and Newton
Minow, former chairman of the Federal Communications Commission and PBS,
propose that Congress direct funds raised by the auction of spectrum to
create a public trust administered on the model of the National Science
Foundation. They argue that the frequencies in the electromagnetic spectrum
are among our nations most valuable and yet little known public assets. The
Congressional Budget Office estimates the auctions of these public assets to
raise $28 billion over the next 10 years. Grossman and Minow propose using
$18 billion from this windfall to make a digital gift to the nation: a
"Digital Opportunity Investment Trust" to fund public, educational uses of
the Internet and other digital communications technologies.
[SOURCE: New York Times, AUTHOR: Lawrence K. Grossman (former president of
NBC News and PBS) and Newton N. Minow (former chairman of the Federal
Communications Commission and PBS)]
(http://www.nytimes.com/2001/04/10/opinion/10MINO.html)
(requires registration)

BROADCASTING

ON TV; NOT ONE BIG, HAPPY FAMILY ANYMORE
Issue: Television
In March, 600 television stations filed a complaint with the Federal
Communications Commission, contending the networks are abusing their
relationship with affiliates--in violation, the stations argued, of existing
communications law. Local affiliates feel threatened by the increasing
amount of power held by networks they acquire more O&Os-that is, stations
that they "own and operate." Many broadcasters fear that the government will
further relax rules limiting how many TV stations a company can amass,
allowing the networks to further consolidate their power. "It's clear the
networks have gone dramatically over the line," said Alan Frank, president
of the Post-Newsweek TV station group. "And if you lift the ownership cap,
the abuses will be worse."
[SOURCE: Los Angeles Times, AUTHOR: Brian Lowry]
(http://www.calendarlive.com/top/1,1419,L-LATimes-TV-X!ArticleDetail-28734,0
0.html)

FCC TO ANNOUNCES FILING WINDOWS FOR LOW POWER FM
Issue: Low Power Radio
FCC has announced it the final filing windows low power FM applications. The
Commission is consolidating the filing window for states in Groups 4 and 5
to speed the filing process for applicants in these remaining states.
Applications will be accepted for the following stations from June 11
through June 15, 2001: Alabama, Arizona, Arkansas, Florida, Guam, Iowa,
Kentucky, Massachusetts, Montana, Nebraska, New Jersey, New Mexico, North
Carolina, North Dakota, Oregon, Pennsylvania, Tennessee, Texas, U.S. Virgin
Islands, Vermont, Washington and West Virginia.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/Public_Notices/FM_Windows/2001/da0109
04.html)

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

Communications-related Headlines for 4/10/01

INTERNET
Conference highlights Net security concerns (USA)
EU Ministers Adopt Copyright Rules (NYT)
Legal Victory for Internet Advertising Industry (CyberTimes)

FCC
FCC Budget Of $248,545,000 Proposed For Fiscal Year 2002 (FCC)

INTERNET

CONFERENCE HIGHLIGHTS NET SECURITY CONCERNS
Issue: Security
With the Internet becoming a pervasive part of life, a platform where $657
billion worth of commerce was transacted last year, according to Forrester
Research, and with that figure expected to increase 10 times by 2004, online
security has become a mainstream concern. A conference that is expected to
bring more than 10,000 people to a San Francisco convention center this week
will peruse exhibits by 250 security companies, chatter at a
"cryptographers' gala" and gather for a closing ceremony featuring comedian
Dana Carvey. Lecture topics range from the arcane - one is titled "On the
Strength of Simply Iterated Feistel Ciphers with Whitening Keys" - to the
straightforward, like "Authenticity in e-Business." The most immediate
challenge for Internet security and cryptography is online fraud, which by
some estimates takes place eight to 12 times as much as it does in the real
world. "The anonymity and ubiquity of the Internet that make it so
attractive to users and the market place are the same qualities that make it
difficult to secure," said Mike Houlahan, a vice president of Arcot Systems,
a Silicon Valley company that makes software designed to limit access to
computer files and networks.
[SOURCE: USA Today, AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/2001-04-09-net-conference.htm)

EU MINISTERS ADOPT COPYRIGHT RULES
Issue: Copyright
Ministers from the 15 European Union nations adopted a directive Monday that
updates copyright laws to cover Internet song-swapping and other types of
digital copying. The new EU rules tighten the definition of "private copy"
and ban commercial use of copied material taken from the Internet. Adoption
and implementation of the directive will enable the EU to ratify the 1996
World Intellectual Property Treaties, giving the treaties more than the
minimum number of countries needed to come into force around the world. The
United States ratified them in 1998 through its Digital Millennium Copyright
Act.
[SOURCE: New York Times, AUTHOR: Associated Press]
(http://www.nytimes.com/aponline/business/AP-EU-Copyright.html)
(requires subscription)

LEGAL VICTORY FOR INTERNET ADVERTISING INDUSTRY
Issue: Privacy
A federal judge has ruled that an advertising company's conduct in gathering
detailed information about consumers through the use of "cookies" -- small
files containing identification numbers -- and other technology for the
purpose of targeting online ads does not violate federal laws. The ruling
last week, by United States District Court Judge Naomi Reice Buchwald, in
Manhattan dismissed at an early stage a consolidated class-action lawsuit
against DoubleClick, the largest provider of Internet advertising products
and services in the world. Lawyers say the decision is significant because
it represents an important victory for the Internet advertising industry and
some Web publishers, whose data-collection practices have been denounced by
privacy advocates as an intrusive monitoring of consumer behavior online. In
addition, the case represents the first time a federal court has addressed
the applicability of federal laws to Internet advertising.
[SOURCE: CyberTimes, AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/2001/04/06/technology/06CYBERLAW.html)
(requires subscription)

FCC

FCC BUDGET OF $248,545,000 PROPOSED FOR FISCAL YEAR 2002
Issue: FCC
The President has submitted a budget to Congress that proposes fiscal year
2002 funding for the Federal Communications Commission of $248,545,000 and a
proposed staffing level of 1,975 full-time equivalents (FTEs). This budget
represents an increase of $18,545,000 over the FY 2001 appropriation level
of $230,000,000.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/OMD/News_Releases/2001/nrmd0101.html)

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

Communications-related Headlines for 4/09/01

FCC
Democratic, Two GOP Candidates Are Nominated For FCC Posts By Bush
(WSJ)
FCC Releases Indecency Statute Policy Statement (FCC)
Consumer, Civil Rights Groups Ask FCC To Approve License For
Broadwave USA (CU)

JOURNALISM
Minority Staff Members in Journalism Are Fewer (NYT)

INTELLECTUAL PROPERTY
Libraries Offer a Touchstone For Intellectual Property Debate (WSJ)

PRIVACY
Survey: Net sparks call for privacy laws (USA)

FCC

ONE DEMOCRATIC, TWO GOP CANDIDATES ARE NOMINATED FOR FCC POSTS BY BUSH
Issue: FCC
President Bush has tapped two Republicans and a Democrat for seats on the
Federal Communications Commission. The nominees are Kevin Martin, a White
House aide who served as deputy general counsel of President Bush's election
campaign; Kathleen Abernathy, a prominent Republican telecommunications
executive and onetime legal adviser to former FCC Commissioner James Quello;
and Michael Copps, a longtime aide to Sen. Ernest F. Hollings (D., S.C.) If
confirmed, they would join FCC Chairman Michael Powell in forming a 3-2
Republican majority on the five-member agency. Republican control of the FCC
will have an enormous impact on the nation's telecommunications industries,
with telephone companies, cable operators and broadcasters reaping large
rewards. Mr. Powell is widely expected to lead the agency down a sharply
deregulatory path. "The bottom line is that Powell has a working GOP
majority, and the FCC hasn't had that for years," said Scott Cleland, an
analyst with the Precursor Group. "This will make him a much stronger
chairman and allow him to pursue the things he's only been able to talk
about up until now."
[SOURCE: Wall Street Journal, AUTHOR: YOCHI J. DREAZEN]
(http://interactive.wsj.com/articles/SB986579817785895138.htm)
(requires subscription)

FCC RELEASES INDECENCY STATUTE POLICY STATEMENT
Issue: FCC
The Federal Communications Commission today issued a Policy Statement to
provide guidance to broadcast licensees regarding compliance with the
Commission's case law interpreting the broadcast indecency statute. The
Policy Statement discusses the statutory basis for, and judicial history of,
indecency regulation; describes the approach the Commission uses in making
broadcast indecency determinations (including comparisons of selected
rulings); and describes the Commission's broadcast indecency enforcement
process.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Enforcement/News_Releases/2001/nren0109.html)

CONSUMER, CIVIL RIGHTS GROUPS ASK FCC TO APPROVE LICENSE FOR BROADWAVE USA
Issue: Broadband
Consumers Union, the Consumer Federation of America, the Leadership
Conference on Civil Rights, the United Latin American Citizens, the Center
for Media Education and the Media Access Project asked the FCC o approve
Broadwave's application for a license to provide video and roadband Internet
services. According to Broadwave, the company's "Northpoint" technology
would allow people to take an off-the-shelf satellite dish, point it to the
North, and receive 60-90 television channels for $20 a month. Broadwave also
plans to offer high-speed Internet service for an additional $20 a month,
which is considerably below the current cost of either high-speed cable
modem service or DSL (digital subscriber line).
[SOURCE: Consumers Union]
(http://www.consumersunion.org/news/news.htm)

JOURNALISM

MINORITY STAFF MEMBERS IN JOURNALISM ARE FEWER
Issue: Journalism/Diversity
The American Society of Newspaper Editors 24th annual survey of minorities
found that the total number of minority journalists dropped from 6,665 to
6,563. Minorities now make up 11.64 percent of journalists, the survey
showed, compared with 31 percent of the national population. The numbers and
percentages fell among all four groups counted. William Sutton Jr., the
president of the National Association of Black Journalists and deputy
managing editor at The News and Observer in Raleigh, N.C., suggested that
because editors have not made minority hiring important publishers should
increase pressure by tying annual bonuses more closely to hiring goals.
[SOURCE: New York Times, AUTHOR: Felicity Barringer]
(http://www.nytimes.com/2001/04/09/business/09DIVE.html)
(requires registration)

INTELLECTUAL PROPERTY

LIBRARIES OFFER A TOUCHSTONE FOR INTELLECTUAL PROPERTY DEBATE
Issue: Intellectual Property
Public libraries are all too easy to forget these days. The more wired we
get, the further away the local library can seem. Yet the public library
system continues to serve millions of people. As the intellectual property
debate moves ahead, the role of the library should serve as an important
touchstone for keeping consumers' rights in perspective. When "we spend
money buying access to databases, we don't own a thing at the end of the
year," says Gary E. Strong, director of the Queens borough library system
in New York. Libraries have always grown by building collections, he says.
Yet the trend now is to move information into electronic form. "My fear is
that we will end up owning nothing," he says. Because digital content is so
easy to copy, we now have laws like 1998's Digital Millennium Copyright Act
and the Uniform Computer Information Transactions Act, passed in some states
and under consideration in others. Combine those laws with upcoming
technologies and it's getting more difficult to share information even for
legitimate purposes. Meanwhile, Mr. Strong says, libraries and Internet
companies need to do more to preserve digital information. Historians have
long depended on archived copies of newspapers and magazines to understand
the past. But what if you want to find out what was on America Online's
"Welcome" screen two years ago?
[SOURCE: Wall Street Journal, AUTHOR: Tom Weber]
(http://interactive.wsj.com/articles/SB986768659189163431.htm)
(requires subscription)

PRIVACY

SURVEY: NET SPARKS CALL FOR PRIVACY LAWS
Issue: Privacy
Americans want laws to protect their private information, even at the cost
of restricting public access and free press, a new survey shows. The survey,
conducted by the First Amendment Center at Vanderbilt University in
collaboration with the American Society of Newspaper Editors found that
people were as concerned about privacy as they were about such issues as
health care and the future of Social Security. "There's tremendous potential
for backlash against public record access," said Ken Paulson, executive
director of the First Amendment Center Friday. "Americans understand we need
access to public records, but they don't understand why anyone would need
access to their records," Paulson said. Paulson said the findings "suggest a
long uphill fight to make the case for freedom of information," and
predicted that we'll see more laws like the one hurriedly passed last month
by the Florida Legislature, which voted to block release of autopsy photos
unless ordered by a judge.
[SOURCE: USA Today, AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/2001-04-06-privacy-survey.htm)

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

Communications-related Headlines for 4/6/01

DIGITAL DIVIDE
Latin American Internet Use Is Low, But Growth Is Ahead, Report
Finds (WSJ)
Public Voice Releases Report on Digital Divide (EPIC)

MERGER
FCC Puts Murdoch Purchase On Hold (WP)

INTERNET
Legal Victory for Internet Advertising Industry (NYT)

DIGITAL DIVIDE

LATIN AMERICAN INTERNET USE IS LOW, BUT GROWTH IS AHEAD, REPORT FINDS
Issue: Digital Divide
According to "latino( at )merica on.line," recent study conducted by management
and technology consulting concern Accenture and Spain's Banco Santander
Central Hispano, number of Internet users in Latin American countries is
expected to reach 44 million by 2003, from just under 15 million last year.
The study cited an increase in free Internet access, financed computer sales
and aggressive promotion spending by Internet businesses as factors that are
boosting Internet use in the region. Current low computer and Internet
penetration is attributed to low per-capita income and poor distribution of
wealth in Latin America. According to the study, in 1999 Latin America
accounted for only 2.7% of the estimated $8 billion in world-wide online
advertising
[SOURCE: Wall Street Journal, AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB986516216378354083.htm)
(requires subscription)

PUBLIC VOICE RELEASES REPORT ON DIGITAL DIVIDE
Issue: Digital Divide
The Public Voice, a project of EPIC that facilitates public participation in
the development of Internet policy, has submitted a report to the Digital
Opportunities Task Force - a G-8 Digital Divide initiative. "The Public
Voice and the Digital Divide: A Report to the DOT Force" assembles comments
and proposals from the public and urges the G-8 to incorporate more public
participation in future consultations.
[SOURCE: Electronic Policy Network]
(http://www.epic.org/)

MERGER

FCC PUTS MURDOCH PURCHASE ON HOLD
Issue: Television
Federal regulators have told lawyers for Rupert Murdoch's News Corp. that
they have temporarily stopped considering his $5.4 billion deal to acquire
Chris-Craft Industries Inc. Regulators said they were waiting for more
information from News Corp. about the financial condition of its New York
Post. The Chris-Craft deal would put Murdoch in the unprecedented position
of owning two television stations and a newspaper in the same market.
Murdoch's lawyers have claimed that the New York Post may fail if he is
forced to sell it as a condition of his acquisition of Chris-Craft, which
owns 10 television stations -- including WWOR-TV in Secaucus, N.J.,
considered part of the New York market. If Murdoch is allowed to own both TV
stations and the newspaper, it would be the second time that the FCC has
made an exception for him to a rule that bans the ownership of both a
newspaper and TV station in the New York market.
[SOURCE: Washington Post, AUTHOR: Christopher Stern]
(http://washingtonpost.com/wp-dyn/articles/A46957-2001Apr5.html)

INTERNET

LEGAL VICTORY FOR INTERNET ADVERTISING INDUSTRY
Issue: Internet
A federal judge has ruled that DoubleClick, Inc., the world's largest
provider of Internet advertising services, does not violate federal laws by
gathering detailed information about consumers through the use of "cookies"
-- small files containing identification numbers -- and other technology for
the purpose of targeting online ads. United States District Court Judge
Naomi Reice Buchwald dismissal of the consolidated class-action lawsuit
against the company, represents the first time a federal court has addressed
the applicability of federal laws to Internet advertising. Lawyers
representing a potentially huge class of consumers had alleged that
DoubleClick's online advertising practices violated three federal laws: the
Electronic Communications Privacy Act, which seeks to prohibit destructive
hacking; the Wiretap Act, which generally prevents wiretapping for criminal
or other wrongful purposes; and the Computer Fraud and Abuse Act, which
prohibits unauthorized access to computers.
[SOURCE: New York Times, AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/2001/04/06/technology/06CYBERLAW.html)
(requires registration)

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

Communications-related Headlines for 4/5/01

FCC Is Expected to Clear Acquisition Of VoiceStream by
Deutsche Telekom (WSJ)
MIT to Make Course Materials Available for Free on the
Web (WSJ)
EU Ministers Agree Not to Veto National Telecom
Decisions (WSJ)

FCC IS EXPECTED TO CLEAR ACQUISITION OF VOICESTREAM BY DEUTSCHE TELEKOM
Issue: Mergers

The Federal Communications Commission is expected to approve as early as
Friday Deutsche Telekom's acquisition of VoiceStream Wireless with few or
no significant changes. At least three of the four current commissioners are
likely to vote in favor of the merger, which has drawn intense scrutiny by
several American lawmakers. While it is possible a vote could be held
Friday, some people suggest the complicated logistics of getting all the
commissioners to vote makes a final decision unlikely before next week. The
vote will be taken using a so-called circular, under which commissioners
cast written votes on the staff recommendation, rather than at a public
meeting. A majority of the four votes is needed to determine the outcome. A
deadlock would end the merger, at least for now. If the merger is approved,
it will mark one of the largest foreign acquisitions in the U.S.
telecommunications market. The deal will also be reviewed for
national-security concerns by the Committee on Foreign Investment in the
U.S., which is managed by the Treasury Department. The committee is also
expected to approve the merger.
[SOURCE: Wall Street Journal, AUTHOR: William Boston
And Yochi J. Dreazen]
(http://interactive.wsj.com/articles/SB986414897482322164.htm)
(requires subscription)

MIT TO MAKE COURSE MATERIALS AVAILABLE FOR FREE ON THE WEB
Issue: EdTech

The Massachusetts Institute of Technology said it will spend up to $100
million over 10 years to make course materials from all of its classes
freely available on the Internet. At a time when many universities have
begun offering online classes for a fee, MIT said it hopes its effort leads
other institutions to offer online educational resources free-of-charge.
University officials said they hope other institutions, particularly in
developing countries, will use the material to develop their own
curriculums. the effort -- dubbed MIT OpenCourseWare -- will encompass
lecture notes, course outlines and reading lists for more than 2,000
courses. "We see it as source material that will support education
world-wide, including innovations in the process of teaching and learning
itself," said MIT President Charles M. Vest.
[SOURCE: Wall Street Journal, AUTHOR: Robert Tomsho]
(http://interactive.wsj.com/articles/SB986407872485716755.htm)
(requires subscription)

EU MINISTERS AGREE NOT TO VETO NATIONAL TELECOM DECISIONS
Issue: Regulation

European Union ministers have rejected a bid by the European Commission, the
EU's executive body, for a veto right over regulation of telecommunications
across the 15-nation bloc. Meeting in Luxembourg, the ministers were
debating proposals related to how telecom companies should be regulated and
how competition law will be applied. Industry officials and the European
Parliament had supported strengthening the commission's role to avoid a
scenario where companies might face 15 potentially different regulatory
environments. But member states, led by Germany, Spain and Austria, balked
at creating what could become an EU-level regulator. The ministers also
decided against the commission's recommendation that existing competition
law be used to regulate the
industry, opting instead to adopt a new definition specific to telecoms.
[SOURCE: Wall Street Journal, AUTHOR: Associated
Press]
(http://interactive.wsj.com/articles/SB986416236425308564.htm)
(requires subscription)

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

COMMUNICATIONS-RELATED HEADLINES for April 04, 2001

INTERNET
Senators Criticize Record Industry, Napster For Delaying Easy Delivery of
Online Music (WSJ)

Tolls Stack Up On Info Superhighway (USA)

ED TECH
Group Aims to Fine Tune Wired Schools (NYT)

DEMOGRAPHICS (INTERNET)
Urbanites Need Net, Too (National Journal's Technology Daily)

SENATORS CRITICIZE RECORD INDUSTRY, NAPSTER FOR DELAYING EASY DELIVERY OF
ONLINE MUSIC
Issue: Internet

The Senate Judiciary Committee took on both the recording industry and
Internet companies for delaying easy delivery of music online. The lawmakers
chided recording companies, saying they drag their feet on signing contracts
with Internet services. New disputes are emerging that will further
complicate digital-music issues. Musicians and retailers are questioning how
they will participate in creating a "celestial jukebox" -- a collection of
every song by all artists available over any Internet connection. Recording
artists Don Henley and Alanis Morissette complained to the committee that
musicians are increasingly excluded from Internet negotiations. "There are a
lot of excruciating details that need to be worked out," Mr. Henley told the
lawmakers. Lawmakers appeared reluctant to push legislation as a solution.
Sen. Orrin Hatch, the chairman of the Senate Judiciary Committee suggested
the government could offer unspecified incentives, perhaps tax breaks, to
the record labels to spur agreements. But he added that the notion might be
"another lame-brain, Hatch idea." Richard Parsons, co-chief operating
officer of AOL Time Warner, wasn't enthusiastic. "You have to have some
faith in the marketplace," he told Sen. Orrin Hatch.
[SOURCE: Wall Street Journal, AUTHOR: Ted Bridis]
(http://interactive.wsj.com/articles/SB986332992118576501.htm)
(requires subscription)

See Also:
NAPSTER, MUSIC INDUSTRY SQUARE OFF ON CAPITOL HILL
[SOURCE: USA Today, AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/review/2001-04-03-napster.htm)

See Also:
SENATORS HEAR DEBATE ABOUT ONLINE MUSIC
[SOURCE: New York Times, AUTHOR: AMY HARMON
(http://www.nytimes.com/2001/04/04/technology/04MUSI.html)
(requires registration)

TOLLS STACK UP ON INFO SUPERHIGHWAY
Issue: Internet

Cathy Isaak of Mason City, Iowa, was all set to join the front lines of the
technology revolution a few months ago, but have changed her mind. "We all
like our computers a lot," she says. "But we've lost so much in the stock
market, I don't feel like I should be spending this extra money. I'm in the
tightening-my-belt mode." For the monthly fee alone, "Broadband would be $40
a month vs. the $20 we now pay" for dial-up service through America Online.
With the economy softening, lots of people are concluding, as Isaak did,
that this is no time to add monthly expenses.
And beyond current events, a growing sense of what might be called "fee
fatigue" may mean trouble for cable, phone and technology-oriented
companies. If people decide they're already spending enough on media, the
companies will have to rewrite their business plans and brawl for a share of
a fixed market.
Media forecasters aren't sure when consumers will pull the plug on more
fees. Consumers "are not just being nickeled and dimed, they're being 10-,
20- and 30-dollared," says Larry Gerbrandt, a senior analyst at Paul Kagan
Associates. "We've been scaling back our projections. All of us are
concerned about 2001. And if we continue sliding into a recession, then all
bets are off." The typical urban and suburban TV household paid $122 a month
in 2000 for cable, long-distance, Internet, cell phones, pagers, etc., vs.
$123 in 1999, according to researcher Howard Horowitz of Horowitz
Associates.
[SOURCE: USA Today, AUTHOR: David Lieberman]
(http://www.usatoday.com/life/cyber/tech/2001-04-03-tolls-info-superhighway.
htm)

GROUP AIMS TO FINE TUNE WIRED SCHOOLS
Issue: Ed Tech

Over the past five years, NetDay, a California based nonprofit group has
helped to wire hundreds of schools for Internet access. Now, they are moving
to help teachers harness what travels through those wires. The nonprofit
organization issued a survey late last week detailing teachers' attitudes
toward the Internet and its use in the classroom to lay a foundation for
NetDay's future work. "The real challenge is how to help teachers use the
Internet," said Julie Evans, the chief executive officer of NetDay.
Teachers "were not receiving leadership or advice on different ways to use
the Internet. There really needs to be a new dialogue with the leadership .
. . so they can be more understanding of what the time issue means." NetDay
is building on the experience of working with educators and community
leaders to tap into the learning potential of what travels over wires and
into classrooms. The shift is a challenge for NetDay, which has
traditionally focused on helping schools build physical infrastructure.
[SOURCE: New York Times, AUTHOR: REBECCA S. WEINER
(http://www.nytimes.com/2001/04/04/technology/04EDUCATION.html)

URBANITES NEED NET, TOO
Issue: Demographics (Internet)

While African Americans and Hispanics in urban areas have lagged in gaining
access to computers and the Internet, companies risk losing out on a big
market if they ignore these potential customers, according to a study
released on Monday by the Rev. Jesse Jackson's Citizenship Education Fund,
reports AP. The study was done in November across 700 U.S. urban areas in
which two out of five people are classified as ethnic or racial minorities,
based on U.S. census data. The results, dubbed the "digital divide," showed
that while 60 percent of all urban households have computers, only 48
percent of African Americans and 52 percent of Hispanics ones do. Fifty-one
percent of all urban households have Internet access at home through a PC,
but just 37 percent of African Americans and 42 percent of Hispanics in
urban areas have access. The study said African Americans and Hispanics lag
in computer ownership and access to Internet but are the most likely to
subscribe to an Internet service in the next year.