1. Monthly archive
  2. August 2001

August 2001

Communications-related Headlines for 8/17/01

BROADBAND
Isolated Western County Gambles With All-Encompassing Broadband
(WSJ)
Hollywood Moves to Rent Movies Online (WP)

SPECTRUM
Unclog the Wireless Pipelines (WP)

JOURNALISM
Industry Standard Says It Will Cease Publication (NYT)
Women's Group Decries Possible CNN-Limbaugh Union (WIRED)

HEALTH
Computer Systems Help Underserved Cancer Patients (Yahoo)

BROADBAND

ISOLATED WESTERN COUNTY GAMBLES WITH ALL-ENCOMPASSING BROADBAND
Issue: Broadband
Grant County, Washington, has embarked on an unusual all-fiber program after
growing frustrated with its local phone and cable providers -- Qwest
Communications International, Verizon Communications and Northland Cable
Television of Seattle -- which offer only limited broadband service here.
The county initiated ZIPP, Zealous Innovators of Public Power, a $120
million plan to run fiber optic cable to the doors of all houses and
businesses. Web surfers will be capable of hitting speeds as much as 1,000
times as fast as users of dial-up modems, and as much as 40 times as fast as
the corporate connections supplied by so-called T1 phone lines. Residents
will have access to hundreds of TV channels provided by independent
providers, as well as a choice of high-speed Internet services and calling
plans. "This is a dangerous concept for a little county like Grant," says
Bill Judge, one of two utility commissioners who advocated a far more modest
fiber rollout. Mr. Judge fears the utility will have to raise electricity
rates to fund the project, something officials have pledged not to do.
"We're looking at $37,500 a mile for fiber, and that makes it very
uneconomical as far as I'm concerned," says Mr. Judge.
[SOURCE: Wall Street Journal, AUTHOR: Dennis K. Berman]
(http://www.wsj.com)
(Subscription Required)
See Also:
MUNICIPAL NETWORKS BECOME RIVALS FOR FIBER-OPTIC TELECOM COMPANIES
[SOURCE: Wall Street Journal, AUTHOR: David Armstrong And Dennis K. Berman]
(http://interactive.wsj.com/articles/SB997994882189011453.htm)
(requires subscription)

HOLLYWOOD MOVES TO RENT MOVIES ONLINE
Issue: Broadband
Five major movie studios have unveiled plans for a joint venture with Sony
Moviefly to bring recent movie releases to home computers. The service,
which will be available only to those with high-speed Internet connections,
would allow digital rentals to be downloaded from a central site to a
computer. The alliance is an attempt by the movie industry to head off some
of the piracy problems that have plagued the music industry through services
like Napster. The studios that will be partners in the service are MGM,
Paramount Pictures, Sony Pictures, Warner Brothers and Universal Pictures.
Fox and Disney have made signs that they intend to announce their own
separate video services. The average digitized feature film is about 500
megabytes, taking 20 minutes to 40 minutes to download depending on the type
of broadband connection. A film will remain on a computer's hard drive for
30 days but will erase itself 24 hours after it is first run.
[SOURCE: New York Times, AUTHOR: Rick Lyman]
(http://www.nytimes.com/2001/08/17/technology/17STUD.html)
(Registration Required)

SPECTRUM

UNCLOG THE WIRELESS PIPELINES
Issue: Spectrum
[Op-Ed] According to Michael Calabrese, "the American people collectively
own the most valuable resource in the emerging information economy: the
airwaves, also known as the electromagnetic spectrum." Specifically, Mr.
Calabrese is referring to the prime frequencies that allow signals to
penetrate buildings and bad weather - spectrum that can be used for powerful
"third generation" (3G) wireless applications. He suggests that a
substantial share of any revenue from licensing these valuable airwaves
should be returned to the public in the form of a "digital opportunity fund"
- a fund that could be used to update America's educational and civic
infrastructure for the digital era.
[SOURCE: Washington Post, AUTHOR: Michael Calabrese, director of the Public
Assets Program at the New America Foundation.]
(http://www.washingtonpost.com/wp-dyn/opinion/A22923-2001Aug16.html)

JOURNALISM

INDUSTRY STANDARD SAYS IT WILL CEASE PUBLICATION
Issue: Journalism
The Industry Standard, often considered to be of the best news-oriented
new-economy publications, has announced that its most recent issue will be
its last. In its heyday a little more than a year ago, the company employed
about 400 people and brought in $140 million in ad-revenue , allowing the
magazine to turn a profit in its third year of existence - a rare feat in
the magazine business. But advertising declined 75 percent in the first half
of this year, and the magazine was on track to lose $50 million on revenue
of $40 million, these executives said. The magazine's Web site,
www.thestandard.com, is expected to continue in the immediate future,
operating with a skeleton crew of journalists and technicians.
[SOURCE: New York Times, AUTHOR: Felicity Barringer And Alex Kuczynski]
(http://www.nytimes.com/2001/08/17/business/media/17MAG.html)
(requires registration)

WOMEN'S GROUP DECRIES POSSIBLE CNN-LIMBAUGH UNION
Issue: Journalism
The National Organization for Women, a leading feminist group, has asked CNN
to drop its plans to air conservative commentator Rush Limbaugh, saying such
a union would be "the scariest media merger yet." NOW President Kim Gandy
urged CNN against "bringing Limbaugh's bigoted rantings to the cable news
market...CNN's image will be forever tarnished by giving someone like
Limbaugh an even bigger microphone." In the past week it has been widely
reported that CNN has courted Limbaugh to host his own show. Asked by a
caller on his show earlier this week if the reports were true, Limbaugh
replied, "Am I talking to CNN? No, I am listening."
[SOURCE: Wall Street Journal, AUTHOR: Reuters]
(http://www.wired.com/news/reuters/story?story_id=20010816RTENTERTAINMENT-ME
DIA-LIMBAUGH-DC.htmlt)

HEALTH

COMPUTER SYSTEMS HELP UNDERSERVED CANCER PATIENTS
Issue: Health
A Computer-based support systems for breast cancer patients has demonstrated
the potential for similar systems to aid patients by providing them with
increased access to information, greater social support and enhanced
participation in their healthcare, according to a new study. The University
of Wisconsin-Madison developed and tested CHESS, the Comprehensive Health
Enhancement Support System, in a study of 246 newly diagnosed breast cancer
patients. The women were randomly assigned to either a study group, which
had CHESS at home for 6 months, or a comparison group that did not
participate in CHESS but received a copy of Dr. Susan Love's book on breast
cancer. After two months of using the Chess system, the study group rated
themselves as feeling an increase level of comfort with their involvement in
their treatment; a higher level of confidence in their healthcare provider;
and scored nearly 5 points higher on a scale that evaluated their level of
competence dealing with information, the report indicates. CHESS benefited
minority women more than white women, both in terms of meeting previously
unmet needs and allowing women to participate in their own healthcare, the
report indicates. The system also held greater benefits for the uninsured
and the less educated. ``Because such systems are effective, it is even more
important to close the digital divide,'' Gustafson said. ``Underserved
people lack access to other health and social resources,'' he said. ``If
computers can help them compensate for that lack of access they could have a
tremendous impact on the empowerment and quality of life of underserved
populations.''
{SOURCE: Yahoo News, AUTHOR: Charnicia E. Huggins]
(http://dailynews.yahoo.com/h/nm/20010816/hl/computer_1.html)

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

Communications-related Headlines for 8/16/01

PRIVACY
Children's Privacy Breaches Addressed in Complaint Against Microsoft
Passport (CME)
Know Your Neighbor's Court Case (WIRED)

TELEVISION
NAACP May Boycott TV (USA)

INTELLECTUAL PROPERTY
Digital-Music Code Crackers Tell All (WP)

PRIVACY

KNOW YOUR NEIGHBOR'S COURT CASE
Issue: E-Government
The Committee on Court Administration and Case Management has recommended
that the records of civil cases -- stripped of personally identifying
information -- be made available through the Internet. The panel stopped
short of recommending that criminal cases be made available, stating
"information could then be very easily used to intimidate, harass and
possibly harm victims, defendants and their families." The recommendations
could become the standard for both federal and state judiciaries. News
groups, in favor of the recommendation, argue that all public records should
be treated the same and should be accessible through the Internet. Opponents
contend that private information such as financial information and medical
records warrant caution. In civil court case circumstances, court officials
would doctor Social Security numbers, dates of birth and minor children's'
names in online records. The Judicial Conference of the United States, which
sets policy for courts will consider the recommendations by the Committee on
Court Administration and Case Management. The report also proposes exempting
cases regarding Social Security challenges. The Social Security
Administration asked for an exemption, and the committee agreed that those
are "of little or no legitimate use to anyone not a party to the case."
[SOURCE: Wired News, AUTHOR: Associated Press]
(http://www.wired.com/news/politics/0,1283,46098,00.html)

CHILDREN'S PRIVACY BREACHES ADDRESSED IN COMPLAINT AGAINST MICROSOFT
PASSPORT
Issue: Privacy
A coalition of leading consumer organizations, including the Center for
Media Education (CME), has filed a complaint petitioning the FTC to
investigate Microsoft's Passport system. The coalition believes that
Microsoft's Kids Passport may not be compliance with the Children's Online
Privacy Protection Act (COPPA), which prohibits unfair or deceptive acts or
practices of online information collection from or about children under the
age of 13 and is enforced by the FTC.
[SOURCE: Center For Media Education]
(http://www.cme.org/press/010815pr.html)

TELEVISION

NAACP MAY BOYCOTT TV
Issue: TV
More than a year after television networks pledged to improve diversity on
and off camera, the NAACP says little has changed and a boycott may be
necessary. ''By any reasonable standard, African-Americans and all other
races of people are underrepresented in almost every aspect of the
television and film industry,'' NAACP president Kweisi Mfume told reporters
Wednesday. A recent NAACP's report found that while minority actors have
made small gains on prime-time TV, the executive ranks of media companies
remain virtually all white. The report was especially critical of ABC and
NBC.
[SOURCE: USAToday, AUTHOR: C

Communications-related Headlines for 8/15/01

BROADBAND
Aggressive Verizon Plays Every Angle In Battle Over Broadband
Deregulation (WSJ)

INTERNET
Efforts to Ease Worries on New Net Addresses (NYT)
Governors Urge End to E-Tax Ban (WP)

DIGITAL DIVIDE
Keeping E-Mail Afloat in Brazil (Wired)

BROADBAND

AGGRESSIVE VERIZON PLAYS EVERY ANGLE IN BATTLE OVER BROADBAND DEREGULATION
Issue: Broadband
As part of a vigorous campaign devoted to advancing legislation that would
let the Bells offer long-distance Internet service via phone lines without
having to prove that they have opened local phone markets to competition,
Verizon has been backing an array of organizations that support letting the
Bells sell high-speed "broadband" Internet connections for consumers. While
Verizon isn't the only one in the broadband battle helping to fund advocacy
groups, many consumer advocates find Verizon's aggressive approach
particularly irksome. "Verizon has a multifaceted lobbying effort, from
front groups to purchased academics to direct personal contacts with the new
administration," said Gene Kimmelman, co-director of Consumer Union's
Washington office. "They're pulling every lever." After receiving a large
grant from Verizon, Robert Crandall, an economist from the Brookings
Institution, released a study concluding that widespread broadband
deployment could add as much as $500 billion a year to the U.S. economy.
[SOURCE: Wall Street Journal, AUTHOR: Yochi J. Dreazen]
(http://interactive.wsj.com/articles/SB997823037806514151.htm)
(requires subscription)

INTERNET

EFFORTS TO EASE WORRIES ON NEW NET ADDRESSES
Issue: Internet
The two companies responsible for the new top-level Domain Names .info and
.biz are taking steps to address concerns about their processes for
distributing the new addresses. Afilias, the consortium that distributes
.info, announced today that it will challenge attempts by nontrademark
holders to register trademarked names fraudulently. Afilias has come under
criticism by trademark holders for loopholes in its advance registration
period that allowed for fraud. Afilias' process will be administered by the
World Intellectual Property Organization. Neulevel Inc., the company that
will administer the .biz registrations, is taking a different tack. Neulevel
has filed a declaratory judgment against Amazon.com. The suit is in response
to a letter by Amazon.com expressing concern over Neulevel's policy of
awarding .biz domain names by a random drawing, regardless of previous
trademark ownership or brand similarity. A California suit filed against
Neulevel last month claims that the company's policy of charging trademark
holders $2 to register for the .biz drawing constitutes an illegal lottery.
"Although we've read about the lawsuit in California, it's interesting to
note that we've never been served," Mr. Neuman said. "We are taking every
action we can to defend our system." Neulevel is seeking a court declaration
that its process does not violate federal trademark statutes and is not
subject to state or federal lottery laws.
[SOURCE: New York Times, AUTHOR: Susan Stellin]
(http://www.nytimes.com/2001/08/15/technology/ebusiness/15DOMA.html)

GOVERNORS URGE END TO E-TAX BAN
Issue: Internet
In a letter to be sent to all House and Senate members, over 40 state
governors will push to get congressional approval for sales taxes on
Internet commerce. Specifically, the governors will urge Congress to reject
extending a 1998 moratorium on other Internet taxes unless states are given
the opportunity to come up with a system that would allow them to collect
online sales taxes. "If you care about a level playing field for main street
retail businesses, and local control of state's governments and schools,
extend the moratorium on taxing Internet access only with authorization for
the states to streamline and simplify the existing sales tax system," a
draft of the letter says. Supporters claim millions, or perhaps billions,
of sales-tax dollars are going uncollected when people purchase products
through the Internet. Opponents point out that there exist roughly 7,500
state and local taxing jurisdictions across the country, making it onerous,
if not impossible, for e-tailers to collect proper taxes based on where the
purchaser resides.
[SOURCE: Washington Post, AUTHOR: Jonathan Krim]
(http://www.washtech.com/news/regulation/11889-1.html)

DIGITAL DIVIDE

KEEPING E-MAIL AFLOAT IN BRAZIL
Issue: Digital Divide
In Amap

Communications-related Headlines for 8/14/01

PRIVACY
Panel Endorses Monitoring of Judges (WIRED)
High-Tech FBI Tactics Raise Privacy Questions (WP)

DIGITAL DIVIDE
Groups Align to Bridge World Tech Gap (WIRED)
Growth in online use slows (CNET)
No PC? Go Online At a Kiosk (WP)

PRIVACY

PANEL ENDORSES MONITORING OF JUDGES
Issue: Privacy
Federal judges and their employees should be blocked from downloading music
and should still be monitored for Internet misuse, a new report recommends.
Judges of the 9th U.S. Circuit Court of Appeals in San Francisco protested
the monitoring of their computers by disabling the monitoring software in
May. They claimed the practice was improper and likely illegal as some
employees were unaware of the monitoring. The 9th Circuit judges complained
to the Judicial Conference of the United States, the courts' policy-making
group of 27 judges. The Judicial Conference refused to support an end to the
monitoring but endorsed the prominent display of Internet policy each time
computer users log on. The group also suggested revising court policies to
match those in a model used by federal agencies. Robert Hamilton, an
Internet attorney in Columbus, Ohio, said courts have repeatedly ruled that
employers may monitor Internet and e-mail use, even without giving notice.
"When the courts find themselves as not the arbitrators but the victims of
such a policy, all of a sudden you find judges saying 'this could very well
be a violation of ... our rights.'" "Now the judges are beginning to
understand how difficult this has been for the private sector for so long,"
he added.
[SOURCE: Wired, AUTHOR: Gina Holland, Associated Press]
(http://www.wired.com/news/reuters/story?story_id=20010813APAP-Judges-Privac
y.htmlt)

High-Tech FBI Tactics Raise Privacy Questions
HIGH-TECH FBI TACTICS RAISE PRIVACY QUESTIONS
Issue: Privacy
In their efforts to bring down Nicodemo Scarfo for alleged illegal gambling
and loan-sharking, Federal prosecutors have run afoul of privacy advocates
(again). Scarfo used PGP, a $50 encryption program to encrypt some of his
personal computer files. When the FBI was unable to crack the encryption on
files they obtained with a search warrant, they secretly installed a way to
capture every keystroke of his keyboard so they could learn his password.
Scarfo's defense team is trying to force the government to reveal how the
"key-logging" technology works as a possible prelude to asking that the
evidence it yielded be thrown out. At issue is whether the key logger was
planted on the basis of a simple search warrant and not a court-approved
wiretap order. Prosecutors refused to divulge how the technology works. "The
logical consequence of the government's argument is that the government will
never need to get a wiretap order for a computer," said Mark Rasch, a former
federal prosecutor who is now vice president of cyberlaw at Predictive
Systems, a Reston-based computer-security consulting firm. "With the
technology that's available today, the government can remotely install
software on a computer to capture all keystrokes and transmit that report to
its agents in real time." The judge gave prosecutors one last chance to
convince him otherwise, saying he would review the technology in secret
before making his final decision. Prosecutors have until tomorrow to
respond.
[SOURCE: Washington Post (A01), AUTHOR: Jonathon Krim]
(http://washingtonpost.com/wp-dyn/articles/A55606-2001Aug9.html)

DIGITAL DIVIDE

GROUPS ALIGN TO BRIDGE DIGITAL DIVIDE
Issue: Digital Divide International
Two nonprofit groups announced a merger Monday. The International Executive
Service Corps (IESC), a group that places retired U.S. businessmen in poor
countries and Geekcorps, an organization that sent young techies to Ghana
announced a merger of "geezers and geeks" to try to stem the growing gap in
technology between rich and poor countries. It seems to be a good match: one
group distributes information technology, the other has handled business
development. Initially, the two groups will continue Geekcorps' work in
Ghana. Twenty-one Geekcorps and six IESC volunteers will build computer
networks and train employees in 50 Ghanaian companies. Later IESC will
expand Geekcorps' expertise into Jordan and Armenia.
[SOURCE: Wired News, AUTHOR: Jim Krane, AP]
http://www.wired.com/news/reuters/story?story_id=20010813APAP-Global-Tec...
p.htmlt

GROWTH IN ONLINE USE SLOWS
Issue: Internet
A Nielsen/Netratings report released Monday shows a slight drop in the
growth rate of new, home-based, Web users in the United States. The report
shows a growth rate of only 16 percent compared with a 41 percent increase
during the previous yearlong period, from July 1999 to July 2000. Over the
two-year period from July 1999 to this past month, Internet use has
increased 63 percent, and last month, 58 percent of Americans had Web access
in their homes. That compares with 52 percent a year ago and 39 percent in
1999. "We're way past the early adopters," Sean Kaldor, vice president of
analytical services at NetRatings said. "We're into mainstream America with
a variance of needs and interests." People sign up as they see the Net
addressing their individual needs.
[SOURCE: CNET News, AUTHOR: Gwendolyn Mariano]
(http://news.cnet.com/news/0-1005-200-6863380.html)
See Also:
CABLE MODEM ACCESS SURGES
[SOURCE: ZDNet News, AUTHOR: Reuters Wire]
(http://www.zdnet.com/zdnn/stories/news/0,4586,2803939,00.html?chkpt=zdnnp1t
p02)

NO PC? GO ONLINE AT A KIOSK
Issue: Access
WorldCom is installing kiosks with Web connections at Marine bases, to let
soldiers without computers communicate with people back home and take care
of other personal business. Worldcom is also marketing the technology to
government agencies that might wish to make services such as driver's
license renewal and voter registration accessible online for those without
Web access at home or work. "In society as a whole, there isn't 100 percent
penetration of PCs and laptops," said Tom Caravelli, a sales director at
WorldCom. "We believe the kiosks can provide that public Internet access."
The system includes a digital camera to let users take and send video of
themselves delivering a message.
[SOURCE: Washington Post (E05), AUTHOR: Neil Irwin]
(http://www.washingtonpost.com/wp-dyn/articles/A7042-2001Aug13.html)

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

Communications-related Headlines for 8/13/01

E-GOVERNMENT
Internet Balloting Called Success (WP)

BROADBAND
AT&T Talks With Microsoft, Disney About Broadband Deal (WSJ)

SATELLITE
News Corp.'s Pact With Latin Firms May Add Leverage to Its Hughes
Bid (WSJ)

INTELLECTUAL PROPERTY
Inventors Release Free Alternative To MP3 Music, but Cost Is High
(WSJ)

E-GOVERNMENT

INTERNET BALLOTING CALLED SUCCESS
Issue: Internet Voting
(Sunday, Aug. 12) An experiment by the Defense Department in Internet voting
is being called a success, albeit an expensive one. Last year, the DOD spent
$6.2 million to let overseas service personnel vote by Internet. Eighty-four
(84) ballots were cast, a cost of nearly $74,000 per voter. The Pentagon has
said that the experiment was a success and that criticisms are misguided as
The experiment was designed to test the feasibility of Internet voting.
"This is a demonstration project that was to prove the concept as opposed to
looking at it on a cost-per-vote basis," Defense Department spokeswoman
Susan Hansen said Friday. The Center for Public Integrity, a nonpartisan
research group in Washington, highlighted the voting project's cost per
ballot in a report Thursday. The test was part of an effort to make voting
easier for 6 million service personnel and other Americans living abroad.
[SOURCE: Washington Post, AUTHOR: Associated Press]
(http://www.washtech.com/news/regulation/11821-1.html)

BROADBAND

AT&T TALKS WITH MICROSOFT, DISNEY ABOUT POSSIBLE BROADBAND UNIT DEAL
Issue: Broadband
AT&T executives held meetings Friday with officials of Microsoft and Walt
Disney about the fate of AT&T Broadband, according to people familiar with
the talks. While the discussions are preliminary and ultimately may not lead
to a deal, AT&T officials are actively talking with companies across the
country in an attempt to spark a bidding war among the nation's big media
companies for its nearly 14 million cable TV subscribers. AT&T has rejected
an unsolicited takeover bid by Comcast and has earlier held preliminary
talks with AOL Time Warner.
[SOURCE: Wall Street Journal, AUTHOR: Deborah Solomon]
(http://interactive.wsj.com/articles/SB997650976540599090.htm)
(requires subscription)

SATELLITE
News Corp.'s Pact With Latin Firms May Add Leverage to Its Hughes Bid
Issue:
News Corp. Chairman Rupert Murdoch has reached an agreement with SKY Latin
America partners - a Latin American satellite-to-home television broadcaster
- to restructure the ownership of their business. Should News Corp acquire
Hughes Electronics and its DirecTV product, News Corp.'s current stakes in
SKY and rival DirecTV Latin America would face major regulatory obstacles.
The restructuring is intended to ease some of those obstacles. Currently,
SKY is owned 30% each by Australia's News Corp., Mexico's Grupo Televisa SA
and Organiza

Communications-related Headlines for 8/10/01

COMPETITION
Antitrust Study Sides With News Corp. In Battle With EchoStar Over
DirecTV (WSJ)
Texas firm says AOL snubs small ISPs (CNET)

BROADBAND
High-Speed Internet Connections Grew 63% During The 2nd Half (WSJ)
FCC Issues Inquiry On Advanced Telecommunications Capability (FCC)

COMPETITION

ANTITRUST STUDY SIDES WITH NEWS CORP. IN BATTLE WITH ECHOSTAR OVER DIRECTV
Issue: Antitrust
A new study finds that a merger of DirecTV with EchoStar Communications
satellite television service would hurt some consumers. The analysis by
Albert Foer, president of the American Antitrust Institute, based in
Washington, D.C., concludes that the proposed combination of
satellite-broadcasters DirecTV with EchoStar's DISH network would place
"between 3.4% and 19% of the population under monopoly conditions." DirecTV
and EchoStar are the nation's top two satellite-to-home providers,
controlling roughly 90% of that market. The analysis concludes that in those
largely rural areas, there would be only one "provider of TV multichannel
programming." The findings of this report challenge that of an earlier study
by Donald Russell, a former Clinton Administration antitrust official, which
suggested that a successful bid by EchoStar for Hughes would help consumers
and increase competition because a single satellite-broadcasting company
would be a more effective competition against cable-television systems
already in place.
[SOURCE: Wall Street Journal, AUTHOR: Andy Pasztor]
(http://interactive.wsj.com/articles/SB997387318963052050.htm)
(requires subscription)

BABY BELL BREAKUP MOVEMENT GAINS GROUND
Issue: Competition
The Baby Bell local phone companies are increasingly criticized for alleged
abuse of the local phone markets. The idea of a Bell breakup has become a
rallying point for rivals and critics of the giants, who allege that Verizon
Communications, SBC Communications, BellSouth and Qwest Communications
International have abused their control of the local telephone networks. A
bill introduced by Reps. Reps. Billy Tauzin, (R-La.) and John Dingell
(D-Mich.) in Congress last week added fuel to the fire. While few expect the
bill to actually pass, its introduction is shining a light on the ongoing
criticism of some of the most powerful players in the communications
business. "The reality is that (the big local phone companies) still have a
monopoly on the wire into the home," said Gene Kimmelman, chief
telecommunications analyst for the Consumers Union. Consumer groups have
lobbied for more competition at the local level. But the breakup movement is
not a grassroots phenomenon: in the states where the issue has come up in
the past two years, AT&T has helped spearhead and fund the drive. The major
difference now is that the movement is gaining more political momentum and
credibility. Much of the political movement now is, in effect, based on
recognition that the Telecommunications Act of 1996 has failed in part.
Maureen Flood, vice president of the Competitive Telecommunications
Association, a lobbying group that represents AT&T and alternative local
phone companies said "We're taking this very seriously. There are a number
of architects of the Telecommunications Act who are really frustrated" with
the progress of local phone network competition.
[SOURCE: CNET News.com, AUTHOR: John Borland]
(http://news.cnet.com/news/0-1004-200-6818658.html?tag=tp_pr)

TEXAS FIRM SAYS AOL SNUBS SMALL ISPs
Issue: Antitrust
Texas.net, an Austin-based Internet service provider on Thursday charged AOL
Time Warner with locking out independent providers from its high-speed
network, an act that would violate an agreement with the U.S. government. As
a condition of the merger approval for America Online and Time Warner was
their agreeing to allow rival Internet service providers access to their
cable lines. In the complaint filed with FCC Texas.net said AOL had refused
to negotiate terms of access to its high-speed cable-modem network, while at
the same time forging agreements with large, national providers.
[SOURCE: CNET News.com, AUTHOR: Reuters Wire]
(http://news.cnet.com/news/0-1004-200-6831175.html?tag=mn_hd)

BROADBAND

HIGH-SPEED INTERNET CONNECTIONS GREW 63% DURING THE 2ND HALF
Issue: Broadband
The number of high-speed connections to the Internet grew by 63% in the
second half of last year, according to a report from the Federal
Communications Commission released Thursday. The total number of DSL phone
lines is now at two million, compared with the 3.6 million cable-modem
connections. DSL uses traditional phone lines, while cable modems use
cable-television lines. The study found in that high-speed service was
available in 56% of the most impoverished zip codes, compared with 42% a
year ago, while 96% of the richest zip codes have access.
[SOURCE: Wall Street Journal, AUTHOR: Mark Wigfield]
(http://interactive.wsj.com/articles/SB997376504159986693.htm)
(requires subscription)
See Also:
FCC RELEASES DATA ON HIGH-SPEED SERVICES FOR INTERNET ACCESS
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2001/nrcc0133.html)

FCC ISSUES INQUIRY ON ADVANCED TELECOMMUNICATIONS CAPABILITY
Issue: Broadband
Today, the Federal Communications Commission (FCC) initiated its third
inquiry under section 706 of the Telecommunications Act of 1996 into whether
"advanced telecommunications capability" is being deployed to all Americans
in a reasonable and timely fashion. Advanced telecommunications capability
refers to availability of high-speed, or broadband, connections. The Notice
of Inquiry issued today seeks information about extent to which broadband
infrastructure is being deployed to all Americans.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2001/nrcc0132.html)

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

Communications-related Headlines for 8/9/01

DIGITAL DIVIDE
Computer Skills Open Doors for 'Unteachables' (WP)

INTERNET
Data's Validity Faulted in Net Registration System (NYT)
Jupiter Cuts Online-Ad Outlook Amid Gloomy Industry Backdrop (WSJ)

PRIVACY
Judges: Don't Monitor Our PCs (Wired)

DIGITAL DIVIDE

COMPUTER SKILLS OPEN DOORS FOR 'UNTEACHABLES'
Issue: Digital Divide
Teenagers previously considered to be "unteachable" because they possessed
"multiple barriers to employment" are excelling in a technology training
program at Hine Junior High in Southeast Washington, DC. Some of the teens
have learning disabilities and emotional problems; others come from
disruptive homes or have been in the criminal justice system. Despite these
challenges, the teens have developed new strengths from the five-week D.C.
Youth Information Technology program. One teen, Christopher Phillips, 15,
was hampered by a learning disability which hampered his ability to read.
However, Christopher won second place in a national Information Superhighway
competition for a Web site he built with FrontPage 2000 and other advanced
computer features, including digital video clips. "These are the youngsters
who supposedly can't fit into a regular classroom, so-called 'unteachables,'
" said Joseph A. Davis II, chief executive of FutureNet Solutions Inc., a
District-based e-business and workforce development company that runs the
youth program. "We beg to differ. We believe that if you make a subject fun
and stimulating, it makes no difference how complicated it is. In our
program, the computer is a fun tool, not just for building Web sites but for
developing self-esteem as well."
[SOURCE: Washington Post (Aug 8), AUTHOR: Courtland Milloy]
(http://www.washingtonpost.com/wp-dyn/articles/A45790-2001Aug7.html)

INTERNET

DATA'S VALIDITY FAULTED IN NET REGISTRATION SYSTEM
Issue: Internet
The introduction of Internet addresses ending with the new ".info" extension
has come under attack for an advance registration period that critics say
allowed some individuals fraudulently to register the new addresses. The
advance registration period was intended to give trademark owners the
opportunity to register addresses before general registration begins on
Sept. 12, thereby avoiding some of the disputes over rights to a name that
have plagued .com addresses. But it appeared the .info registration system
left loopholes that allowed speculators to register addresses without
supplying data indicating a legitimate trademark. Officials at Afilias ,
which manages the .info domain, said that it would have been impossible for
to verify the trademark information given for each address registered, which
is why the group has outlined a procedure whereby anyone can challenge a
registration believed to be illegitimate.
[SOURCE: New York Times, AUTHOR: Susan Stellin]
(http://www.nytimes.com/2001/08/09/technology/09DOMA.html)
(requires registration)

JUPITER CUTS ONLINE-AD OUTLOOK AMID GLOOMY INDUSTRY BACKDROP
Issue: Internet
Internet tracker Jupiter Media Metrix Inc. formally slashed its outlook for
online-advertising spending, saying it will grow at a much slower rate than
previously expected. According to the report, online advertising is now
expected to account for $5.7 billion in revenue this year, down from the
$7.3 billion Jupiter had previously projected, but still up from $5.4
billion in 2000. Jupiter also predicts that Internet advertising will make
up 7% of total advertising spending by 2006, up from 3% in 2001.
[SOURCE: Wall Street Journal, AUTHOR: Stephanie Miles]
(http://interactive.wsj.com/articles/SB997287771391636647.htm)
(requires subscription)

PRIVACY

JUDGES: DON'T MONITOR OUR PCs
Issue: Privacy
The judges of the 9th U.S. Circuit Court of Appeals in San Francisco are
protesting the monitoring of their computers by Washington managers
concerned about personal Internet use. The judges claim the practice is
illegal. Supreme court justices and other judges will consider the complaint
next month. In May, to express their discontent, the judges ordered staff to
disable the monitoring software. That action led to a weeklong shutdown
affecting 10,000 court employees in the Circuit, which covers nine western
states and two territories. In response, the Administrative Office of the
Courts in Washington issued a security alert, stating that the shutdown "put
the entire judiciary's data communications network ... at risk." Ninth
Circuit Chief Judge Mary Schroeder said court employees had been disciplined
for unauthorized computer use even though they were not fully aware of the
court's policy on the matter. Further, Schroeder said the court
administrators may have violated a federal privacy act. "We are concerned
about the propriety and even the legality of monitoring Internet usage," she
wrote in a June 29 memorandum obtained by The New York Times.
[SOURCE: Wired News, AUTHOR: AP Wire]
(http://www.wired.com/news/politics/0,1283,45936,00.html)

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

Communications-related Headlines for 8/8/01

ANTITRUST
Microsoft Asks Supreme Court to Reverse Antitrust Finding (WP)

SATELLITES
Slow To Take Off (WP)
Satellite Challenging Cable Companies For TV Viewers (WP)

ANTITRUST

MICROSOFT ASKS SUPREME COURT TO REVERSE ANTITRUST FINDING
Issue: Antitrust
Microsoft asked the Supreme Court yesterday to reverse a recent appeals
court finding that the company had repeatedly violated antitrust law and to
expunge all legal and factual findings in the case because of disparaging
comments about the company by a federal district judge. Microsoft also asked
the appeals court to suspend all other legal proceedings until the Supreme
Court can decide whether to hear the case. The issue Microsoft has presented
for review to the Supreme Court is whether the appeals court erred in not
disqualifying Judge Jackson and vacating all his findings after finding that
the judge repeatedly violated judicial ethics rules by holding conversations
with reporters from a variety of publications.
[SORUCE: New York Times, AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2001/08/08/technology/08SOFT.html)

SATELLITES

SLOW TO TAKE OFF
Issue: Satellites
Satellite-delivered Internet is sometimes the only broadband option for
Internet users in rural areas, where telecommunications companies are least
likely to invest money to string fiber-optic networks or DSL lines.
Unfortunately, satellite is still a very costly option for consumers. At
$500 to $600 for the equipment and around $70 a month for service, satellite
costs 30 to 50 percent more than typical cable or DSL service costs.
Bundling Internet access with satellite television service is the most
promising avenue of growth for satellite-delivered Internet, said Michael
Goodman, an analyst with Boston-based market-research firm Yankee Group
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
(http://www.washtech.com/news/telecom/11715-1.html)

SATELLITE CHALLENGING CABLE COMPANIES FOR TV VIEWERS
Issue: Satellites
Satellite providers and cable companies are engaged in a battle for the
nation's TV viewers. In the seven years satellite providers have been in
business, have signed up an astonishing 16 million viewers. According to a
survey from Consumer Reports magazine due out next week, cable seems plagued
by problems such as poor customer service. "Cable companies may ... be their
own worst enemy," the survey found, since they received "among the lowest
marks of any service providers we regularly evaluate - even lower than those
for technical support form computer manufacturers." Despite the inroads
satellite has made, one major drawback remains the limited availability of
local broadcast channels, a standard feature on cable.
[SOURCE: Washington Post, AUTHOR: Seth Sutel]
(http://www.washtech.com/news/netarch/11722-1.html)

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

Communications-related Headlines for 8/7/01

CABLE/TELEVISION
What Is 'Family' TV? (LA)
Analysts Wary of EchoStar Move (WP)
Consumer Advocates Challenge Overturning Of Cable Ownership Caps
(MAP)

INTERNET
Md. Deemed Most Web-Enabled State (WP)
Online Music Ventures Probed (WP)

FCC
FCC to Take NextWave Case to High Court (WP)

CABLE/TELEVISION

WHAT IS 'FAMILY' TV?
Issue: Television
This Friday, CBS will be airing the Family Television Awards, an event
sponsored by a consortium of advertisers called the Family Friendly
Programming Forum. But these days, when most homes have multiple TV sets and
communal viewing is an increasingly rare occurrence, some may wonder what
"family viewing" really means. While the advertisers honored "Survivor" as
TV's top "reality" program, some parenting experts have accused the series
of promoting "warped values" and suggested its dog-eat-dog mentality is
"poisonous for our young adolescents." At the same time, the consortium did
not recognize critically acclaimed shows such as "ER" and "Boston Public" -
which dabble in controversial issues, from AIDS to guns to homosexuality -
that many families view together.
[SOURCE: LA Times, AUTHOR: Brian Lowry]
(http://www.latimes.com/technology/columnists/techcol/la-000064078aug07.stor
y?coll=la%2Dbusiness%2Dtechnology%5Fcolumn)
See Also:
EDUCATION KEY TO V-CHIP AND TV RATINGS SUCCESS
[SOURCE: Center For Media Education]
(http://www.cme.org/press/010731pr.html)

ANALYSTS WARY OF ECHOSTAR MOVE
Issue: Merger
Analysts are split on whether EchoStar Communications' surprise $32 billion
bid for Hughes Electronics Corp. is a serious bid or an attempt to disrupt
Rupert Murdoch's pending merger with Hughes's DirecTV unit. "The consensus
is that [EchoStar chief executive Charlie Ergen] is bluffing," said Jeffrey
Wlodarczak, an analyst with CIBC World Markets who talked to several of
EchoStar's institutional investors yesterday. Nevertheless, GM has said that
it will "give full consideration to any bona fide proposal" and is set to
discuss the bid at a board meeting today. Ergen and Murdoch have a history.
In 1996 the two were in merger talks until Murdoch pulled out of a deal,
pushing EchoStar close to financial collapse. Ergen was able to rebuild the
company after reaching a settlement with Murdoch's company that gave
EchoStar a sizable chunk of satellite spectrum.
[SOURCE: Washington Post, AUTHOR: Christopher Stern]
(http://www.washtech.com/news/telecom/11695-1.html)

CONSUMER ADVOCATES CHALLENGE OVERTURNING OF CABLE OWNERSHIP CAPS
Issue: Cable
On behalf of Consumer Federation of America, Consumers Union, and other
non-profits, MAP and Georgetown Law School's IPR asks the Supreme Court to
review a decision overturning the FCC's national cable ownership cap.
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/)

INTERNET

ONLINE MUSIC VENTURES PROBED
Issue: Antitrust
The U.S. Justice Department has launched an antitrust investigation into two
rival online music services being developed by the world's largest music
companies. The first service is MusicNet, comprised of AOL Time Warner,
Bertelsmann AG, EMI Group and Real Networks. The second service is
Pressplay, comprised of Sony, Vivendi Universal and Microsoft. The probe
centers on potentially anti-competitive behavior by the five industry giants
in music, which control 80 percent of the world's most popular music. The
rival online music services are trying to generate revenue out of the
concept popularized by Napster, the free online music-swapping service. The
market is estimated to be worth billions of dollars. On a related topic,
some members of Congress have expressed concerns that Pressplay and MusicNet
will license content to each other, creating a pair of online behemoths. As
a result, Reps. Chris Cannon (R-Utah) and Rick Boucher (D-Va.) recently
co-sponsored the Music Online Competition Act, which would ensure that
smaller Internet companies can license songs under the same terms and
conditions as the largest media conglomerates.
[SOURCE: Washington Post, AUTHOR: Alec Klein and Jonathan Krim]
(http://www.washtech.com/news/media/11696-1.html)

MD. DEEMED MOST WEB-ENABLED STATE
Issue: Internet
Maryland offers more government services online than any other state,
according to a study released by the Center for Digital Government, an arm
of the for-profit magazine publishing company E.Republic. Maryland was the
only state to score a perfect 100 percent, indicating it scored the highest
possible ranking in each of several categories of services. The report
released Monday was just one installment in an ongoing survey, specifically
evaluating electronic commerce and business regulation by the states. The
Center for Digital Government conducted the research jointly with the
Progress and Freedom Foundation in Washington.
[SOURCE: Washington Post, AUTHOR: Neil Irwin]
(http://www.washtech.com/news/govtit/11693-1.html)

FCC

FCC TO TAKE NEXTWAVE CASE TO HIGH COURT
Issue: FCC
Federal regulators have decided to appeal the court ruling that would have
them return confiscated spectrum licenses to bankrupt NextWave Telecom. The
FCC will ask the Supreme Court to review the lower-court decision. The lower
court had ruled that the FCC violated bankruptcy laws when it reclaimed the
airwave licenses and held a new auction netting $15 billion. The FCC's
appeal comes as NextWave plans to file a plan with a federal court in White
Plains, N.Y., to emerge from bankruptcy. FCC Chairman Michael K. Powell,
meanwhile, said the appeal was necessary because the lower-court's ruling
threatens the agency's seven-year-old policy of selling airwaves to the
highest bidder.
[SOURCE: Washington Post, AUTHOR: Christopher Stern]
(http://www.washtech.com/news/telecom/11690-1.html)
See Also:
NEXTWAVE TO UNVEIL REORGANIZATION
[SOURCE: Washington Post]
(http://www.washtech.com/news/telecom/11677-1.html)

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

Communications-related Headlines for 8/6/01

INTERNET
Bell Companies Blamed for D.S.L.'s Woes (NYT)
Ruling Could Hurt Net Radio (USA Today)
Venture Funds Bet on Bridging 'Last Mile' (Wired)

POLICY
Senate Confirms Controversial New Head Of Federal Telecommunications
Agency (WSJ)

INTERNATIONAL
South Africa plans hardline Internet snooping legislation (The
Register)

INTERNET

BELL COMPANIES BLAMED FOR D.S.L.'S WOES RULING COULD HURT NET RADIO
Issue: Broadband
According to a paper released last month by the School of Information
Management and Systems at the University of California at Berkeley, the
regional Bell operating companies control 90 percent of the residential
D.S.L. market nationwide. The paper concludes that the nation's Bell
companies have maintained "unreasonable delays" in providing D.S.L.
connections to Internet service providers while charging wholesale prices
that are "unjustifiably high." According to Bruce L. Claflin, President and
CEO of 3Com, which used to sell consumer D.S.L. modems, the phone companies
have been reluctant to make a big push into D.S.L., because the profit
margins have not looked attractive enough. At the same time, he said, the
phone companies have little incentive to make it easy for others to build
D.S.L. businesses.
[SOURCE: New York Times, AUTHOR: Katie Hafner]
(http://www.nytimes.com/2001/08/06/technology/06DSL.html)

RULING COULD HURT NET RADIO
Issue: Copyright
A federal court has thrown out a challenge from the broadcasting industry
against the U.S. Copyright Office, which ruled late last year that radio
stations must pay extra royalties to broadcast over the Internet. The ruling
was a major defeat for operators of radio stations, many of whom also
operate Web sites that carry the content of their broadcasts live. If the
court's ruling stands, they will have to pay licensing fees to songwriters,
music publishers and record companies. Currently, stations do not pay fees
to record companies for songs played only on radio broadcasts.
[SOURCE: USA TODAY, AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/cyber1.htm)

VENTURE FUNDS BET ON BRIDGING 'LAST MILE'
Issue: Deployment
Venture capitalists are investing more in a technology breakthrough that is
valuable to help deploy Internet infrastructure to the "last-mile" of
metropolitan-area Internet networks. Investors are funding research to
improve semiconductors that can make Internet fiber optic cable more
efficient and less expensive to operate. According to Jeff Yu, a principal
with Crescendo Ventures, "Components have really been the enablers. For
people looking forward, components again will enable the next wave of
innovation...." Yu suggested it's not a question of whether optics will be
around, rather "It's a question of how to get optics to penetrate deeper and
get closer to end-users." Gary Smith, CEO of CIENA, maker of products for
fiber-optics, said that pent-up demand needs to be tapped by telecom
companies. In the short term, "We should not lose sight of the fact that the
end-user demand is still there," Smith said.
[SOURCE: Wired, AUTHOR: Jim Christie (Reuters)]
(http://www.wired.com/news/reuters/story?story_id=20010805RTTECH-TECH-VENTUR
E-OPTICS-DC.htmlt)

POLICY

SENATE CONFIRMS CONTROVERSIAL NEW HEAD OF FEDERAL TELECOMMUNICATIONS AGENCY
Issue: Policy
Nancy J. Victory was confirmed as director of the National
Telecommunications and Information Administration. The Senate voted the Bush
appointee into office at NTIA which governs whether and how to sell bands of
government-owned radio spectrum to the private sector despite concerns of
potential conflicts with her professional and financial interests. The Bush
administration is planning to nominate a candidate to handle issues from
which Victory recuses herself.
[SOURCE: WALL STREET JOURNAL, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB997047431425249010.htm)

INTERNATIONAL

SOUTH AFRICA PLANS HARDLINE INTERNET SNOOPING LEGISLATION
Issue: International
Opposition is mounting against new legislation in South Africa designed to
allow security services to monitor for terrorist and criminal activity
online, and to support banning forms of communications that can't be bugged.
The Interception and Monitoring Bill is reflective of the UK's Regulation of
Investigatory Powers Act, although more restrictive and critics say the law
sanctions "draconian" government spying. "The South African government wants
to implement a draconian Internet censorship law that will allow officials
to censor, curtail, eavesdrop on, monitor, intercept and in fact completely
regulate all the country's Internet and postal communications," reads a Web
site protesting the legislation.
[SOURCE: The Register, AUTHOR: John Leyden]
(http://www.theregister.co.uk/content/6/20828.html)

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