September 2001

PRIVACY/SECURITY
Cellular Firms Seek 911 Delay (WP)
Living Under an Electronic Eye (NYT)

INTERNET
New Web Suffixes Beset by Trademark, Registration Fights (WP)
Realnetworks Sees Its Future In Content (SJM)
Relief Agencies Retool to Handle Online Flood (NYT)

PRIVACY/SECURITY

CELLULAR FIRMS SEEK 911 DELAY
Issue: Wireless
It has been said before, but it bears repeating: in four days, cell-phone
companies will be required to have technology in place to help emergency
workers track down the location of a 911 call made from a wireless phone. By
all indications they will miss that deadline. All of the companies have
applied to the FCC for waivers on the Oct. 1 deadline. In the waivers, the
various wireless companies claim that the current technologies can not meet
federal rules requiring that they locate the caller within 100 meters, at
least two-thirds of the time. The companies face fines if they are found in
violation of the rules, of without a waiver. Not everyone, however, is a
proponent of the technology: the industry itself points to the pure
technical and logistical hurdles of coordinating a system that can locate an
individual in the vastness or rural areas, or within the "noise" of urban
settings. Add to that the cost of the system: $400,000 to $1 billion. Also,
privacy advocates have, in the past, raised concerns about the application
of such technology for commercial purposes. "It's important for consumers to
have information to know what their options are," and what information they
want automatically disclosed, said Cheryl Leanza, deputy director for
Washington-based Media Access Project, a public interest law firm.
[SOURCE: Washington Post (E05), AUTHOR: Yuki Noguchi]
(http://www.washingtonpost.com/wp-dyn/articles/A32392-2001Sep26.html)

LIVING UNDER AN ELECTRONIC EYE
Issue: Security/Privacy
There is a growing tension between decreased personal privacies and
increased public security. And many are asking the question: "If the
technologies to view private records are available to government, should it
be given the powers to use them?" There are, of course, many complexities to
address in answering that question, but in the context of the events of
September 11, more than a few would believe the answer to be "yes." Against
the backdrop of several congressional antiterrorism proposals, current and
historical studies that show Americans tend to be willing to sacrifice
liberties for security.
[SOURCE: New York Times, AUTHOR: Lisa Guernsey]
(http://www.nytimes.com/2001/09/27/technology/circuits/27PRIV.html)

INTERNET

NEW WEB SUFFIXES BESET BY TRADEMARK, REGISTRATION FIGHTS
Issue: Internet
The rollout of the .biz and .info Web domain suffixes is mired in legal
challenges. A Superior Court judge in Los Angeles heard arguments in two
class-action lawsuits over .biz, slated for launch next month. The suits
raise concerns about the way .biz names are assigned. Similarly, .info, has
been caught up in controversy over whether applicants claimed trademark
rights to win desirable names before they were available to the public. All
of the controversy leads to interesting and opposing view on the process of
establishing new Web domains suffixes. The first view holds that ICANN was
wise to approve only a few new domains instead of hundreds. "These problems
underscore the wisdom of the board in not launching a hundred or a thousand
[suffixes] as some people have urged us to do," said Stuart Lynn, president
and chief executive of ICANN. The other view is more critical, arguing that
ICANN's approval of such a limited amount of new domains creates artificial
scarcity and anxiety. University of Miami law professor, Michael Froomkin
illustrates the view: "Nobody knows when the next round will be or if there
will be a next round," Froomkin said. "That just raises the tension level.
It's not the free-market solution everyone was hoping for."
[SOURCE: Washington Post, AUTHOR: Dina ElBoghdady]
(http://www.washingtonpost.com/wp-dyn/articles/A32266-2001Sep26.html)

REALNETWORKS SEES ITS FUTURE IN CONTENT
Issue: Internet
After the recent attacks on the World Trade Center, people flocked to the
Web looking for up-to-the-minute information. If the recent spike in
streaming-media traffic is any indication, Web content is more important
than ever, says RealNetworks Chief Executive Rob Glaser. In fact, content
may be the key to his company's future. This week, it introduced RealOne, an
integrated media player designed to strengthen its position against the
rival Windows Media Player. The RealOne player lets users access their
digital music, video and Web content from one application. As essential part
of their strategy to use content to drive downloads and paid subscriptions,
RealNetworks is signing deals with big sports franchises and entertainment
companies.
[SOURCE: San Jose Mercury, AUTHOR: Kristi Heim]
(http://www.siliconvalley.com/docs/news/svfront/real092701.htm)

RELIEF AGENCIES RETOOL TO HANDLE ONLINE FLOOD
Issue: Internet
As the events of September 11th unleashed an unprecedented amount of
giving, the Internet made it possible for millions of dollars in small
donations from around the country and the world to be used for relief
efforts almost instantaneously. "A couple of years ago, it would not have
been possible for citizens to respond with this quickness and magnitude and
get resources to where they're needed immediately," said Lisa Aramony, the
vice president of the AOL Time Warner Foundation. While the American Red
Cross raised $39.5 million online the first week alone, the overwhelming
volume of donations did not come without its problems. The servers that
operate the site were soon jammed with traffic, and people could not get on
to the Web site to find out about relief efforts, where to donate blood or
how to give money to the organization.
[SOURCE: New York Times, AUTHOR: Jon Christensen]
(http://www.nytimes.com/2001/09/26/technology/ebusiness/26RED.html)
(requires registration)

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COPYRIGHT
Napster Settles Lawsuit Filed by Music Publishers (WP)

PRIVACY
Disputes on Electronic Message Encryption Take On New Urgency (NYT)

ADVERTISING
AOL, Blaming Terrorist Attacks, Lowers Outlook (NYT)

WIRELESS
Wireless Web Isn't Connecting (Wired)

COPYRIGHT

NAPSTER SETTLES LAWSUIT FILED BY MUSIC PUBLISHERS
Issue: Copyright
Napster announced yesterday that it has agreed to pay music publishers $26
million to settle their lawsuit against the company. Unfortunately for
Napster the settlement only the dispute between Napster and two musical
publishing firms and does not resolve a lawsuit filed by the world's major
record companies. The deal announced yesterday covers the copyrights owned
by the Harry Fox Agency and the National Music Publishers Association. The
major music companies have said that they will not drop their lawsuit
against Napster until the service can prove that its users are no longer
able to trade unauthorized copies of songs.
[SOURCE: Washington Post (E12), AUTHOR: Christopher Stern]
(http://www.washingtonpost.com/wp-dyn/articles/A19900-2001Sep24.html)

PRIVACY

DISPUTES ON ELECTRONIC MESSAGE ENCRYPTION TAKE ON NEW URGENCY
Issue: Privacy
The attacks of Sept. 11th have reawakened a debate on how strongly the
public - and by extension terrorists and other criminals - should be able to
encrypt their electronic messages. The technology of scrambling data and
messages has become a crucial element of computer security for businesses
and consumers alike. Encryption technologies were the subject of bitter
debate in the mid- 1990's, when the Clinton administration proposed a
technology popularly known as the "Clipper Chip" that would provide back-
door access for law enforcement, and also restricted the export of strong
encryption products by American firms. Companies and consumers said they
would not use a product that had government access built in.
[SOURCE: New York Times, AUTHOR: John Schwartz]
(http://www.nytimes.com/2001/09/25/technology/25CODE.html)
(requires registration)

ADVERTISING

AOL, BLAMING TERRORIST ATTACKS, LOWERS OUTLOOK
Issue: Advertising
AOL Time Warner Inc., the world's biggest media company, announced yesterday
that it would badly miss its financial goals for the year, largely because
the Sept. 11 terrorist attacks exacerbated the erosion of the advertising
market. Ever since America Online agreed to acquire Time Warner early last
year, executives from the companies have trumpeted their relative
independence from advertising, but Twenty-four percent of AOL's revenue
still comes from advertising. "Prior to Sept. 11, the company had not yet
seen an improvement in the overall advertising environment," AOL said in a
statement yesterday. "Due to the events of Sept. 11, it has further
deteriorated. The state of the advertising market is impacting the company's
networks, America Online, publishing and cable operations."
[SOURCE: New York Times, AUTHOR: SETH SCHIESEL]
(http://www.nytimes.com/2001/09/25/technology/25AOL.html)
(requires registration)

WIRELESS

WIRELESS WEB ISN'T CONNECTING
Issue: Publishing
The Seybold Publishing Conference opened Monday with an eight-hour seminar
on wireless publishing. About 50 people showed up. Organizers expected more
than 100. The attendance reflects the overall feeling right now about
publishing for wireless telephones: either the audience hasn't arrived; or
wireless publishing is an event worth missing. Unfortunately for the
attendees the panelists couldn't help them figure out which. Aside from
warnings of conflicting technical standards to transmit data and security
breaches to worry about, they admitted not having a clue how to make money
offering wireless services. "If I knew, I wouldn't be here," joked Seamus
McAteer, an analyst from Jupiter Media Metrix. Possible moneymakers, SMS, a
form of short text messaging currently charged per use in Europe and
photography through cell phones. But that isn't exactly PUBLISHING, now is
it?
[SOURCE: Wired, AUTHOR: Elisa Batista]
(http://www.wired.com/news/business/0,1367,47077,00.html)

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DISASTER RESPONSE
FCC's Powell Pledges Aid to Communications Firms (WP)
Concern Over Proposed Changes in Internet Surveillance (NYT)

SPECTRUM
NextWave Reaches Tentative Deal To Sell Coveted Wireless Licenses
(WSJ)

TELECOMMUNICATIONS
FCC Authorizes Verizon to Provide Long-Distance Service in Penn.
(FCC)

DISASTER RESPONSE

FCC'S POWELL PLEDGES AID TO COMMUNICATIONS FIRMS
Issue: Government Responses
FCC Chairman Michael Powell pledged on Thursday to aid Verizon
Communications and other communications companies following the attack at
the World Trade Center. Verizon suffered damage to tens of thousands of
lines in lower Manhattan after the commercial airplane crashed into the
twin towers, demolishing the center. "Verizon and other communications
companies impacted have my full support to assist them in any way possible
as they continue to face the enormous challenges ahead of us in this
difficult time," said Powell, who toured the World Trade center on
Wednesday.
[SOURCE: Washington Post, AUTHOR: Reuters Wire]
(http://www.washtech.com/news/telecom/12602-1.html)

CONCERN OVER PROPOSED CHANGES IN INTERNET SURVEILLANCE
Issue: Security vs. Privacy
Legislators have proposed significant changes in the government's Internet
surveillance authority. The proposed law furthest through the legislative
process is the Combating Terrorism Act of 2001. That legislation grants new
powers to the government to capture information related to a suspect's
activities in cyberspace. Traditionally, with telephone conversations, a law
enforcement official can tap a suspect's conversations only if there is
probable cause to believe the suspect is doing something illegal and if a
magistrate agrees to issue an order. The Fourth Amendment's ban on
unreasonable searches have heightened the legal requirements needed for a
government wiretap. However, if the government just wants a list of
telephone numbers that a suspect dials the Supreme Court has held that
information is not private. For the past few years, the government has
interpreted that ability to extend to gathering certain information from
ISP's about a suspect's e-mails -- for example, the to/from header
information. The Combating Terrorism Act of 2001 would codify the
government's pro-law enforcement interpretation.
[SOURCE: New York Times, AUTHOR: Karl S. Kaplan]
(http://www.nytimes.com/2001/09/21/technology/21CYBERLAW.html)
(Registration Required)

SPECTRUM

NEXTWAVE REACHES TENTATIVE DEAL TO SELL COVETED WIRELESS LICENCES
Issue: Spectrum
NextWave Telecom has tentatively agreed to sell dozens of wireless-spectrum
licenses to the nation's largest cellular telephone companies in a deal that
could bring as much as $11 billion (the Washington Post is report $5
billion) and resolve a case that has bedeviled the government and the
wireless industry for years. People familiar with the negotiations said that
under terms, NextWave would pay the government the $4.2 billion it owes for
the licenses and perhaps several hundred million dollars of interest, while
the government would drop its legal challenges to NextWave taking full
possession of the spectrum. NextWave then would sell the licenses to Verizon
Wireless and other companies that bought the rights to the spectrum at a
January auction that later was annulled by a federal appeals court. NextWave
would receive nearly $16 billion from the bidding companies, pay the
government approximately $5 billion owed, and could walk away with nearly
$11 billion - all without ever having served a single customer.
[SOURCE: Wall Street Journal, AUTHOR: Christopher Stern]
(http://interactive.wsj.com/articles/SB1001039291985324360.htm)
SEE ALSO:
DEMISE OF WIRELESS START-UPS PALES NEXT TO DOT-COM FLOPS
[SOURCE: Wall Street Journal, AUTHOR: Kristi Essick]
(http://interactive.wsj.com/articles/SB1001008482271519760.htm)
(Subscription Required)

TELECOMMUNICATIONS

FCC AUTHORIZES VERIZON TO PROVIDE LONG DISTANCE SERVICE IN PENNSYLVANIA
Issue: Telephony
The FCC voted this week to approve Verizon's application to provide
in-region, interLATA, or long distance, service originating in Pennsylvania.
Since the passage of the 1996 Act, the FCC has denied five long distance
applications, and now has approved applications to provide in-region, long
distance service into seven states. Additionally, four applications have
been withdrawn. A summary of all section 271 applications can be accessed at
the following FCC web page:
www.fcc.gov/Bureaus/Common_Carrier/in-region_applications/
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2001/nrcc0136.html)

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INTERNET
Virulent Nimda Worm Hits Computers Worldwide (NYT)
Taking Classes To the Masses (WP)

JOURNALISM
Far Conflict Challenges Slimmed-Down Networks (NYT)

WIRELESS
Attacks Renew Calls for 911 System to Locate Cell Phones (WP)
Cellphone Service Contracts, Sales Jump in Wake of Terrorist Attack
(WSJ)

INTERNET

VIRULENT NIMDA WORM HITS COMPUTERS WORLDWIDE
Issue: Internet
A fast-spreading computer worm has corrupted corporate computer networks and
personal computers in an outbreak that could be more widespread and damaging
than the Code Red infections, computer security experts said. Known as
"Nimda," the word "admin" spelled backwards, the worm first appeared in the
United States on Tuesday, and spread to Europe and Asia overnight. U.S.
Attorney General John Ashcroft said that Nimda could prove "heavier" than
the Code Red worm that caused an estimated $2.6 billion in clean-up costs
after outbreaks in July and August. Ashcroft also said that there was no
sign of a link between the infection and the terrorist attacks of last week.
[SOURCE: New York Times, AUTHOR: Reuters]
(http://www.nytimes.com/reuters/technology/tech-tech-worm.html)
(requires registration)

TAKING CLASSES TO THE MASSES
ISSUE: EdTech
Fathom, a for-profit company started by Columbia University to offer courses
over the Internet - at a cost. To run Fathom, Columbia hired a new-media
executive and persuaded the University of Chicago, the British Museum and
the American Film Institute, among other prestigious institutions, to lend
their names to Fathom. But, Columbia alone put up the money: $30 million. So
far the venture hasn't made back its money, nor torn down the wall around
Ivy League. The venture's first attempt: $500 semester-long courses failed.
So now Fathom is going to offer courses which might take three to five hours
to finish, at about $50. It's been rough going for online colleges.
Seemingly at one time springing up by the dozens, universities are learning
the hard lessons of taking classes to the masses. "I'm not sure this is a
good expenditure or not," says Richard W. Bulliet, a Columbia history
professor and co-chair of a faculty committee that analyzed Fathom earlier
this year. "I'm willing to be persuaded, but I'm not persuaded yet." Thirty
million dollars, after all, could go a long way elsewhere on campus.
[SOURCE: Washington Post Magazine, AUTHOR: Christopher Shea]
(http://www.washtech.com/news/software/12508-1.html)

JOURNALISM

FAR CONFLICT CHALLENGES SLIMMED-DOWN NETWORKS
Issue: Journalism
As scores of journalists around the world scramble to get to Pakistan's
capital, less than a three-hour drive from the Afghan border, American
broadcast news operations are confronting the reality of two decades' worth
of budget cuts in foreign news. Information about the terrorist network
attributed to Osama bin Laden is scattered across a daunting region that the
networks have tended to cover from London. Since the early 90s, the major
networks have been operating with only handful of reporters based overseas.
Even so, network executives say, they are prepared to cover a far- flung
conflict.
[SOURCE: New York Times, AUTHOR: Felicity Barringer]
(http://www.nytimes.com/2001/09/19/business/media/19MEDI.html)
(requires registration)

WIRELESS

CELLPHONE SERVICE CONTRACTS, SALES JUMP IN WAKE OF TERRORIST ATTACK
Issue: Wireless
National wireless carriers say sales of their services, while difficult to
quantify, have surged since the attacks last Tuesday. Although cellular
service in Manhattan was disrupted severely after the event, many people
used their phones to check on family and friends. And everyone heard reports
of some of the trapped employees and hijack victims using cellphones to call
loved ones as the horrifying events unfolded. The nation's largest wireless
carrier, Verizon Wireless, said it has seen sales jump in the Northeast.
AT&T Wireless Services said sales of its services have increased nationwide,
with the Northeast leading the surge. Some analysts have put out reports
this week predicting the initial jump in sales will continue and lead to a
longer-term boom in cellphone adoption. "Now everyone wants their wives and
kids to have cellphones for security reasons," said Thomas J. Lee, a
managing director at J.P. Morgan Chase & Co. "I think that the utility and
importance of having a mobile phone has really been underscored."
[SOURCE: New York Times, AUTHOR: Andrea Petersen]
(http://www.nytimes.com/2001/09/19/technology/19CELL.html)
(requires registration)

ATTACKS RENEW CALLS FOR 911 SYSTEM TO LOCATE CELL PHONES
ISSUE: Wireless
Against the backdrop of a shattered World Trade Center and emerging urban
legends of victims making a final cell call home, the wireless phone
industry is preparing to miss the deadlne for a national "enhanced 911"
system. The industry is supposed to have some form of "e-911" service up and
running by Oct. 1. But major carriers including Verizon Wireless, Sprint PCS
and AT&T Wireless, have told the Federal Communications Commission they will
not be ready because the necessary technology is not available. So far, the
FCC has only granted one of 31 requests to extend the deadline. "It was a
big public safety issue before last week, and it remains an issue," an FCC
official said yesterday. Currently about 30 percent of all 911 calls are now
made from cell phones, according to the National Emergency Number
Association. On balance, even if the system had been in place, it is
questionable what benefit it would have been to rescue workers sifting
through rubble: FCC rule requires the companies be able to fix the location
of a caller within 100 meters. Finding victims in the disaster area required
equipment that could pinpoint a cell-phone signal within a few feet.
[SOURCE: Washington Post (Sept. 16), AUTHOR: Christopher Stern and Yuki
Noguchi]
(http://www.washtech.com/news/telecom/12556-1.html)

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