October 2001

Communications-related Headlines for 10/31/01

JOURNALISM
CNN Chief Orders 'Balance' in War News (WP)

INTERNET
Neustar to Manage the .us Internet Domain Name Space (NTIA)
The Net: It's Not Just About Shopping (USA)
What do Broadband Customers Want? (CNET)
Earthlink Service Isn't Kidding (Wired)
Amazon.com and NBC Strike Marketing Deal (NYT)

FCC
Interview With Chairman Powell (FCC)

COMPETITION
Court: AOL Can't Distribute Version 6.0 (CNET)
Consumer Advocates Call on PSC To Take Action to End BellSouth Phone
Monopoly (CFA)
Web Firms Merge To Survive Slump (NYT)

NONPROFITS
After The Tech Rush (SF Gate)

JOURNALISM

CNN CHIEF ORDERS BALANCE IN WAR NEWS
Issue: Journalism
The chairman of CNN has ordered his staff to balance the images of civilian
devastation in Afghanistan with reminders that the Taliban supports and
harbors terrorists. Walter Isaacson wrote told his correspondents that it
"seems perverse to focus too much on the casualties or hardship in
Afghanistan." News of American bombs hitting residential areas, a senior
center and twice a Red Cross warehouse have fueled the criticism of the war.
"I want to make sure we're not used as a propaganda platform," Isaacson said
in an interview yesterday. "You want to make sure people understand that
when they see civilian suffering there, it's in the context of a terrorist
attack that caused enormous suffering in the United States." While some CNN
correspondents are concerned about having a "pro-America" stamp on their
reports, all the networks are clearly sensitive to charges that they are
playing into enemy hands.
[SOURCE: Washington Post (C01), AUTHOR: Howard Kurtz]
(http://www.washingtonpost.com/wp-dyn/articles/A14435-2001Oct30.html)

INTERNET

NEUSTAR TO MANAGE THE .US INTERNET DOMAIN NAME SPACE
Issue: Internet
The Commerce Department's National Telecommunications and Information
Administration (NTIA) today announced the award of a contract to NeuStar,
Inc., for the management of the .us domain space. The .us domain space is
the country code top level domain associated with the United States. NeuStar
and the Department of Commerce entered into a four-year contract, with two
one-year, optional extensions, on October 26th, setting forth the terms
under which NeuStar will provide technical management of .us and enhanced
services for .us consumers.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/domainname/usca/index.html)

THE NET: IT'S NOT JUST ABOUT SHOPPING
Issue: Internet
Almost everybody uses the Net to get information and do research and, of
course, to send e-mail. But only 61% use it to shop, and even fewer, 38%,
use it to download music. That's according to a survey of Net users out
today from Internet provider Prodigy. The findings provides yet another
piece of evidence that the Net is still an informational -- rather than just
a purely commercial - medium. The study also reveals that younger users tend
to have a much more emotional connection with the Net: 21% of respondents 18
to 24 call the Net their ''best friend." Most of those surveyed (93%)
predict that in 10 years the Net will still be helping people stay in touch,
not isolating them.
[SOURCE: USAToday, AUTHOR: Janet Kornblum]
(http://www.usatoday.com/usatonline/20011031/3582459s.htm)

WHAT DO BROADBAND CUSTOMERS WANT?
Issue: Broadband
According to a study by McKinsey, Jupiter Media Metrix and Vividence,
consumers want: "a faster, more intense experience." The companies asked
what happens to consumers who have switched from a narrowband connection to
a broadband pipe? Overall, they found that, as a proportion of time spent
online Web surfing drops, although the hours actually spent on the Web
increases. They also found that broadband is being adopted by a broad
cross-section of age, family composition, sex and income, with penetration
rates as high as 20 to 30 percent in some parts of the U.S. Additionally,
once people have set up their broadband connection, they spend 27 percent
more time online overall, average 37 percent more sessions a month, and view
17 percent more pages a month.
[SOURCE: CNET News.com, AUTHOR: McKinsey Quarterly]
(http://news.cnet.com/news/0-1004-201-7724280-0.html0

EARTHLINK SERVICE ISN'T KIDDING
Issue: Internet
Earthlink announced Tuesday it will offer its subscribers a kid-safe browser
that incorporates filtering software that allows parents to control their
children's surfing habits. Earthlink has previously avoided the filtering
debate altogether. An Earthlink spokesman said the company had been mulling
for more than a year whether to offer the service to its 4.8 million
subscribers, as porn sites and spam continue to proliferate and clutter the
Web. "I think any parent who's Internet-savvy knows there's a lot of
opportunities on the Internet for kids to go into the wrong areas," said
Arley Baker. "A good solution is to keep kids on the right track."
[SOURCE: Wired, AUTHOR: Julia Scheeres]
(http://www.wired.com/news/business/0,1367,48013,00.html)

AMAZON.COM AND NBC STRIKE MARKETING DEAL
Issue: Advertising
Amazon.com struck an exclusive marketing deal with NBC that would promote
products for sale online that are featured on the network's programming. The
network will air ``bumpers'' -- short commercials promoting a site called
www.amazon.com/nbc --when , for example, an author is interviewed on an NBC
program. For NBC, the deal provides a detailed analysis of who's likely to
buy what products advertised during its shows. For Amazon, the Internet
retailer struggling to turn a profit, the deal provides a low-cost way to
advertise on television and bring traffic to its site.
[SOURCE: New York Times, AUTHOR: The Associated Press]
(http://www.nytimes.com/aponline/technology/AP-Amazon-NBC.html)
(requires registration)

FCC

INTERVIEW WITH CHAIRMAN POWELL
Issue: FCC
Yesterday, Michael Powell, Chairman of the Federal Communications
Commission, appeared on the public radio show "Public Interest with Kojo
Nnamdi." An audio archive of the full interview in available on the FCC Web
site.
[SOURCE: FCC]
(http://www.fcc.gov)

COMPETITION

CONSUMER ADVOCATES CALL ON PSC TO TAKE ACTION TO END BELLSOUTH PHONE
MONOPOLY
Issue: Competition
National and state consumer advocates today called on the Florida Public
Service Commission (PSC) to end BellSouth's local phone monopoly by
compelling the company to open its local markets up to competition before it
approves BellSouth's application to enter the long distance market. At the
same time, a new report released by the Consumer Federation of America (CFA)
estimates that Florida consumers could save as much as $100 million per year
on their phone bills if local markets are genuinely open to competition.
Authored by Dr. Mark N. Cooper, CFA's Director of Research, the report also
examines how BellSouth's obstructionism is a key reason for the failure of
local phone competition in Florida, and what steps state regulators must
take to remedy the situation.
[SOURCE: Consumer Federation of America]
(http://www.consumerfed.org/florida_competition_release_200110.pdf)

COURT: AOL CAN'T DISTRIBUTE VERSION 6.0
Issue: Copyright
A federal judge has ordered America Online to stop distributing the 6.0
version of its Internet software, saying that it likely violates copyrights
for the computer code used to play MP3 files. Playmedia Systems owns the
software copyrights for an MP3 player that Nullsoft, and AOL subsidiary uses
in its popular Winamp MP3 player. The court decided that AOL may have
exceeded Nullsoft's license limits with Playmedia, when it included the
copyrighted Playmedia code in its version 6.0. "PlayMedia has established
probable success in proving that AOL exceeded the grant of the license,"
U.S. District Judge A. Howard Matz wrote in his decision Monday. The
decision does not affect AOL 7.0 release two weeks ago.
[SOURCE: CNET News.com, AUTHOR: Gwendolyn Mariano]
(http://news.cnet.com/news/0-1005-200-7724223.html)

WEB FIRMS MERGE TO SURVIVE SLUMP
Issue: Mergers
Online media companies are learning that in some cases, two is better than
one. Since Sept. 11, many firms have shown a new willingness to team up with
other companies, in an effort to cut costs and build market share. In the
last year, CNET Networks closed its acquisition of ZDNet's network of sites,
Microsoft. MSN Money merged with CNBC.com, iVillage acquired Women.com
Networks, while DoubleClick has used the downturn to snap up
online-advertising rivals. These companies say that by eliminating their
main rival, they have been able to achieve faster growth both in terms of
site traffic and advertising sales. Firms also tout the benefits of
cross-media promotion enabled by mergers. "It is immeasurably valuable to
have cable channels to promote and cross program with an online news
source," says Aram Sinnreich, a senior analyst with Jupiter Media Metrix.
Merging CNBC and Money Central put "all the promotional and programming
powers together."
[SOURCE: New York Times, AUTHOR: Stephanie Miles]
(http://interactive.wsj.com/articles/SB1001972196146158480.htm)
(requires registration)

NONPROFITS

AFTER THE TECH RUSH
Issue: Nonprofits
After leaving the "me, me" world of dot.coms, some young professionals are
looking for a way to give something of themselves back. The San Francisco
Offices of the Peace Corps especially, have seen an upward turn in new
initiates. Peace Corps Public Affairs Specialist Dennis McMahon explained
the appeal. "[Peace Corps] volunteers are creative, energetic,
unconventional people," he said. "There's a lot of similarity with the
dot-commers. A lot of people got on board in tech because it was an
adventure, and that's what the Peace Corps is about -- going into new
territory, coming up with novel solutions to fix problems." The dot.com
skill of past-techies can come in handy in the Peace Corp. Ghana for
example, has put out a request for individuals who possess both tech and
business savvy.
[SOURCE: San Francisco Gate, AUTHOR: Amy Moon]
(http://www.sfgate.com/cgi-bin/article.cgi?file=/g/a/2001/10/29/giveback.DTL
)

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

Communications-related Headlines for 10/30/01

.US TLD
NeuStar Inc. to Administer '.us' Domain (Reuters)

MERGER/ANTITRUST
Look, Up in the Sky! Big Bets on a Big Deal (NYT)

DIGITAL DIVIDE
Closing The Gap (WSJ)

INTERNET
Veiled Messages of Terrorists May Lurk in Cyberspace (NYT)

FCC
FCC Chairman Announces Creation of Media
Ownership Working Group (FCC)

.US TLD

NEUSTAR INC. TO ADMINISTER '.US' DOMAIN
Issue: .us TLD/INTERNET
The Department of Commerce announced Monday afternoon it has awarded control
of the ".us" Internet domain to NeuStar Inc., a private company. NeuStar
intends to market the little-used online address to a wider audience, but
says they will parts of the domain for free use by local governments,
schools and libraries. "For the first time, U.S. residents, government
bodies and public-service organizations are able to establish an American
identity on the Internet," said Jeff Ganek, chief executive and chairman.
NeuStar will additionally streamline the .us address system. For example, a
school that might be listed as www.cape.k12.me.us could opt to be listed as
www.capeschools.us, or www.capeelizabeth.us. NeuStar will also make the .us
TLD available to the general public. NeuStar officials say they expect to
sign up millions of new names like www.johndoe.us and www.acmecorp.us. This
summer Democratic lawmakers and a wide range of interest groups lodged
protests when the Commerce Department announced that it intended to hand
control of the domain to a private business. NeuStar intends to set up a
policy board of government, nonprofit, commercial and other interests.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
(http://www.reuters.com/news_article.jhtml?type=internetnews&StoryID=329976)

MERGERS/ANTITRUST

LOOK, UP IN THE SKY! BIG BETS ON A BIG DEAL
Issue: Satellite/Broadcasting
Analysts believe that the EchoStar takeover of Hughes Electronics will win
easy approval from the FCC. But they aren't so confident about the outcome
of a review by the Department of Justice's antitrust division. Even if the
regulators could get past the consequences of merging the no. 1 and no. 2
satellite carrier, word is that Rupert Murdoch's News Corp. is likely to
lead the lobbying in Washington against the deal. The elimination of the two
competing satellite TV providers leave many with only one competing
alternative: cable. But where cable is unavailable, the choice is satellite
or nothing. "I think there is about a one-in- three chance that this gets
approved," said Scott C. Cleland, chief executive of the Precursor Group, a
highly respected investment research firm in Washington. "It discourages new
market entrants. It creates less incentive for innovation. It eliminates the
most direct competition." He added, "DirecTV and EchoStar are whipping cable
in the marketplace today. There is no legitimate argument why they have to
merge to compete with cable."
[SOURCE: New York Times, AUTHOR: Seth Schiesel]
(http://www.nytimes.com/2001/10/30/business/media/30BIRD.html)
(Requires Registration)
See Also:
MURDOCH'S 'PLAN B' IS UNCLEAR
[SOURCE: Wall Street Journal, AUTHOR: John Lippman and Ken Brown]
(http://interactive.wsj.com/articles/SB1004397230177870280.htm)
(Requires Registration)

DIGITAL DIVIDE

CLOSING THE GAP
Issue:
In 1995, the U.S. government issued its first report on the digital divide,
"Falling through the Net: A survey of the 'Have-Nots' in Rural and Urban
America." Since then, the gap has narrowed -- but it's still very much here.
Race, education and location still determine who has access to and uses the
Internet. Minorities, the disabled and rural residents still lag behind in
their use of computers and other high-tech gadgetry, as does much of the
rest of the world. Experts, including many state legislators, are already
gearing up for the next challenge when it comes to bridging the digital
frontier: broadband. Nationally, 12% of urban households have high-speed
access, compared with 7% of rural households. A lot of people may have
rudimentary access," says Andy Carvin, senior associate at the Benton
Foundation, "but if broadband is only available in more-affluent households,
that means it will divide the types of opportunity available to people --
especially as a lot of the content being produced for the Internet is
broadband-enabled."
[SOURCE: Wall Street Journal, AUTHOR: Ann Grimes]
(http://interactive.wsj.com/archive/retrieve.cgi?id=SB1004117421169724720.dj
m)
(requires subscription)

INTERNET

VEILED MESSAGES OF TERRORISTS MAY LURK IN CYBERSPACE
Issue: Security/Culture
The investigation of terrorist activity has drawn attention to the
centuries-old art of hiding secret information in public documents:
steganography. Of particular concern is the power and ease that digital
images and the globally networked Internet brings to the practice. In
modern, digital steganography, photographs, video, and text can be hidden in
digital photographs or music files without any outward trace that the files
were altered. While U.S. officials remain tight-lipped about what they know
about illegal uses of steganography, the French have revealed that they have
apprehended terrorists who were instructed that all communications should be
made through picture posted on the Internet. "Quite an alarming number of
images appear to have steganography in them," said one expert who has looked
for them, Chet Hosmer, the president and chief executive of WetStone
Technologies in Cortland, N.Y. Mr. Hosmer says his company has not decided
whether to reveal all the sites where he is finding steganography, but he
has found it on the auction site eBay, where people can post pictures
anonymously. A George Mason University professor, Dr. Neil F. Johnson, a
steganography expert, said he became so worried by steganography's potential
to be used by terrorists and criminals that he stopped publishing his
research on how to detect it. [Note: For those interested, we will publish a
Digital Beat on steganography on Wednesday.]
[SOURCE: New York Times, AUTHOR: Gina Kolata]
(http://www.nytimes.com/2001/10/30/science/physical/30STEG.html)
(Requires Subscription)

FCC

FCC CHAIRMAN MICHAEL POWELL ANNOUNCES CREATION OF MEDIA OWNERSHIP WORKING
GROUP
Issue: Media Ownership
FCC Chairman Michael K. Powell announced Monday the creation of a Media
Ownership Working Group tasked with developing a solid factual and
analytical foundation for media ownership regulation. The findings of this
Working Group will provide an empirical and analytical basis for the FCC to
achieve its long-standing goals of promoting diversity, localism, and
competition in the media. Chairman Powell said, "Rebuilding the factual
foundation of the Commission's media ownership regulations is one of my top
priorities. For too long, the Commission has made sweeping media policy
decisions without a contemporaneous picture of the media market. We need to
rigorously examine whether current forms of media regulation are achieving
the Commission's policy objectives, and how changes in regulations would
affect the policy goals of competition, diversity, and localism." The
Working Group member, all staff of the FCC, represent the Mass Media Bureau,
Cable Services, General Counsel, and economists.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/2001/nrmc0124.html)

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

Communications-related Headlines for 10/29/01

BROADCASTING/CABLE
First LPFM Stations launch! (MAP)
AOL Gains Cable Rights in China by Omitting News, Sex and Violence
(NYT)

INTERNET
Most Schools Are Wired (NYT)
Net-porn Law Applies Deadline Pressure (CNET)
After Billion-Dollar Build-Up, Broadband Plans Are Put Off (WSJ)
Wayback Goes Way Back on Web (Wired)

MERGER/ANTITRUST
GM Agrees on Sale of Hughes, DirecTV Units to EchoStar (WP)
Leading Consumer Watchdogs Urge Strong Remedy in Antitrust Case
(CFA)

BROADCASTING/CABLE

FIRST LPFM STATIONS LAUNCH!
Issue: Radio
Low Power Radio, community-based radio on the FM dial, is on the air. After
years of effort at the FCC by a coalition of public interest groups
including the Media Access Project, the Low Power Radio Coalition and
others, Low Power FM has launched.
Formats are as varied as the community imagination itself. Churches, social
service
agency, and interested community groups that have successfully made it
through the
FCC's application process and are now beginning to use this part of the
public airwaves.
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/programs/lpfm/Update.PDF)
See Also:
NO POWER TO THE PEOPLE
[SOURCE: Scientific American, AUTHOR: Mariama Orange]
(http://www.sciam.com/2001/1101issue/1101scicit4.html)

AOL GAINS CABLE RIGHTS IN CHINA BY OMITTING NEWS, SEX AND VIOLENCE
Issue:
Acquiring an unlikely mantra of "no sex, no violence, no news," AOL Time
Warner Inc. has gained a foothold in the world's most populous country. Last
Monday, the company AOL signed a deal with the Chinese government allowing
it to broadcast one of its cable channels in southern China. The agreement,
under which AOL will expand its Mandarin-language channel, China
Entertainment Television (CETV), into the mainland, is the first time a
foreign broadcaster has won the right to distribute programming on cable
television systems in China. CETV is already available in some Chinese homes
from cable operators who distribute it illegally. It has survived this
nebulous status by steering a cautious course through China's political
shoals - avoiding sex, violence, and, most of all, news coverage. There are
also signs that, even as Beijing opens up its market, it is seeking to
tighten its control in other ways. The government has asked all foreign
cable channels to transmit their signals through a single, Chinese-owned
satellite, rather than through private satellites.
[SOURCE: New York Times, AUTHOR: Mark Landler]
(http://www.nytimes.com/2001/10/29/business/media/29CHIN.html)
(requires registration)

INTERNET

MOST SCHOOLS ARE WIRED
Issue: ED Tech
New statistics compiled by Quality Education Data, a market research firm,
indicate that 97 percent of America's public schools are now connected to
the Internet, while 84 percent of public school classrooms are online.
Jeanne Hayes, president of the research company, attributed the high
connection rates to the federal E-rate program, which provides money to wire
schools in part through fees assessed on consumers' phone bills. ''An
infusion of $2.25 billion has had a tremendous impact, especially in the
poorer schools,'' she said. The data also indicated that the average ratio
of students-per-computer was 5-to-1 in the 2000-2001 school year. Ms. Hayes
said 22 percent of the districts surveyed said they were supplying hand-held
computers to staff members, most frequently to technology coordinators or
principals. But she said she also expected those devices to become more
common in classrooms.
[SOURCE: New York Times, AUTHOR: Susan Stellin]
(http://www.nytimes.com/2001/10/28/technology/29DRILL.html)
(requires registration)

NET-PORN LAW APPLIES DEADLINE PRESSURE
Issue: Internet
Sunday, October 28 was the deadline for schools and libraries to show proof
of adequate steps taken to block access to online pornography on public
computers. At risk was thousands of dollars in federal E-Rate funding. An
element of the law known as the Children's Internet Protection Act (CIPA),
the requirement had already met with resistance earlier this year. Signed
into law by President Bill Clinton, CIPA requires schools and libraries to
block visual depictions of pornography, obscenity or other material deemed
offensive to children in order to qualify for funds set aside by the
government to help pay for computers and Internet access. CIPA is being
challenged in the courts by the ACLU and the American Library Association
(ALA) on the grounds of First Amendment violations and the ineffectiveness
of filtering software. The hearing is scheduled for February. The schools'
and libraries' deadline for complying to the law was yesterday.
[SOURCE: CNET News.com, AUTHOR: Gwendolyn Mariano]
(http://news.cnet.com/news/0-1005-200-7671482.html)

AFTER BILLION-DOLLAR BUILD-UP, BROADBAND PLANS ARE PUT OFF
Issue: Broadband
Having sunk billions into efforts to offer fast Internet connections, some
big phone companies are putting the brakes on such broadband lines. In
recent days, both Sprint and SBC announced retrenchments in their flagship
high-speed offerings for consumers and small businesses. AT&T Wireless
Services is shutting down its wireless broadband service. And Excite At Home
Corp., which delivers fast Internet connections to 3.6 million
cable-television subscribers, has filed for bankruptcy. After hitting
quarterly growth rates as high as 50% last year, digital subscriber line
customer growth lowed to 14% in the second quarter of this year. There is
even evidence that as broadband begins to go mainstream, some customers are
canceling. Some mainstream customers realize they aren't taking advantage of
the service. "They're saying, 'I really don't think I need to pay $50 a
month to check my e-mail,' " says Imran Khan, a Yankee Group analyst. To
increase the mass appeal of the service, carriers will need to cut prices.
"But then you're digging the ditches deeper in terms of making your money
back," he says.
[SOURCE: Wall Street Journal, AUTHOR: Dennis K. Berman and Shawn Young]
(http://interactive.wsj.com/articles/SB1004305242345271600.htm)
(requires subscription)

WAYBACK GOES WAY BACK ON WEB
Issue: Internet
The Internet Archive (www.archive.org) and Alexa Internet have built a tool
that can bring Web users backwards in time. Sort of. The Wayback Machine is
an archive of Web pages reaching back to 1996. A free service, the Wayback
Machine (http://web.archive.org) is a record of how the Web has evolved over
time. "It's preserving a record of something that otherwise literally
vanishes," said Paul Grabowicz, Assistant dean at University of California
in Berkeley's Graduate School of Journalism. "That is one of the
frustrations about the Web." Researchers at Xerox PARC are reportedly using
the archive to study new user interfaces and languages on the Web. The tool
also has potential uses for Web designers (finally your resum

Communications-related Headlines for 10/26/01

PRIVACY/SECURITY
Terror Bill Has Lasting Effects (WIRED)
Congress Approves Final Version of Anti-Terrorism Act (EPIC)
Antiterrorism Bill Would Require FBI To Report Use Of E-Mail
Snooping Tools (WSJ)

MERGERS/ANTITRUST
Jupiter, An Internet Research Firm, Is Being Bought By Netratings
(NYT)
Global Antitrust Group Forms (WIRED)

INTERNET DEPLOYMENT
Victory gives keynote at the National Summit on Broadband Deployment
(NTIA)
Brazil Looks to Heavens for Net (WIRED)

PUBLISHING
Think-Tank Presses Are Suddenly Best-Selling Publishers (WP)

PRIVACY/SECURITY

TERROR BILL HAS LASTING EFFECTS
Issue: Security
A good amount of the opposition to the anti-terrorism bill that Congress
will send to the President this week, was dropped under the promise of a
"sunset clause" for the bills provisions. The compromise version approved by
the House and Senate sets an expiration date of 2005 for the most
controversial surveillance sections. But what may come as a shock is that
many more parts of the bill are exempt from the sunset clause. After the
President signs the measure on Friday, police will have the permanent
ability to conduct Internet surveillance without a court order in some
circumstances, secretly search homes and offices without notifying the
owner, and share confidential grand jury information with the CIA. Also
exempted from the expiration date are investigations underway by or before
December 2005. Relaxed standards allowing any U.S. attorney or state
attorney general to order the installation of the Carnivore surveillance
system to record addresses of Web pages visited and e-mail correspondents --
without going to a judge (Section 216); Any Internet provider or telephone
company must turn over customer information, including phone numbers called,
without a court order, as long as the FBI claims the "records sought are
relevant to an authorized investigation to protect against international
terrorism." Additionally, the company contacted may not "disclose to any
person" that the FBI is doing an investigation. (Section 505); And a new
crime called "cyberterrorism" defined as hacking attempts causing damage
"aggregating at least $5,000 in value" in one year(Section 814)
[SOURCE: Wired, AUTHOR: Declan McCullagh]
(http://wired.com/news/conflict/0,2100,47901,00.html)

ANTITERRORISM BILL WOULD REQUIRE FBI TO REPORT USE OF E-MAIL SNOOPING TOOLS
Issue: Privacy
Civil liberties groups got a victory with a provision in antiterror
legislation that would require a judge to monitor the Federal Bureau of
Investigation's use of a powerful e-mail wiretap system. The clause could
help ensure that the system, once known as Carnivore, doesn't collect more
information than allowed by a warrant. Carnivore critics worry that the
device goes beyond traditional telephone wiretap laws and can gather data
about people who aren't criminal suspects. "The concern about Carnivore has
been its ability to collect too much information," said David Sobel, general
counsel of the Electronic Privacy Information Center. "So it really is
critical to have some means of overseeing how the technique is actually
used." Robert Corn-Revere, a First Amendment specialist who defended
Internet provider EarthLink Inc. when the company refused to use Carnivore,
called the clause an improvement. "There are virtually no accountability
procedures in the law before this amendment," Mr. Corn-Revere said.
[SOURCE: Wall Street Journal, AUTHOR: Associated Press]
(http://interactive.wsj.com/articles/SB1004025018776674320.htm)
(requires subscription)

CONGRESS APPROVES FINAL VERSION OF ANTI-TERRORISM ACT
Issue: Security
In a 98-1 vote, the Senate has passed the USA-PATRIOT Act of 2001, a
"compromise" version of the various anti-terrorism bills. This final
congressional action followed 24 hours after the House voted 357-66 to
approve the same version of the bill, based on H.R. 3108 and S. 1510. The
final legislation includes a few changes: most notably, a sunset on the
electronic surveillance provisions, and an amendment providing judicial
oversight of law enforcement's use of the FBI's Carnivore system. However,
it retains provisions vastly expanding government investigative authority,
especially with respect to the Internet. The bill will go immediately to the
President's desk.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

MERGERS/ANTITRUST

GLOBAL ANTITRUST GROUP FORMS
Issue: Antitrust
Antitrust officials from around the world Thursday formed a group to develop
global enforcement guidelines to ensure fair competition. The group's
formation was in response to calls from dealmakers who say the international
approval process is disjointed and tedious. The newly minted International
Competition Network will have its first meeting next summer in Italy. The
International Competition Network will develop "best practices," but it will
be up to individual governments on whether to implement the group's
suggestions.
[SOURCE: Wired, AUTHOR: Reuters Wire]
(http://www.wired.com/news/politics/0,1283,47892,00.html)

JUPITER, AN INTERNET RESEARCH FIRM, IS BEING BOUGHT BY NETRATINGS
Issue: Merger
Jupiter Media Metrix, the Internet research firm that once was one of the
pillars of Silicon Alley in New York, agreed yesterday to sell itself to the
much smaller NetRatings of Milpitas, Calif., in Silicon Valley for $71.2
million. While Jupiter Media Metrix had four times the revenue of NetRatings
and its rating service was more widely followed both on Madison Avenue and
Wall Street, NetRatings was more fiscally prudent. Jupiter Media Metrix was
formed in June 2000 as the combination of Media Metrix with Jupiter
Communications. NetRatings, originally a spinoff of the electronics company
Hitachi, was another attempt to measure the audience of Web sites. It
combined in September 1999 with a similar effort from A. C. Nielsen, the
company that measures television audiences.
[SOURCE: New York Times, AUTHOR: Saul Hansell]
(http://www.nytimes.com/2001/10/26/technology/26JUPI.html)
(requires registration)

INTERNET DEPLOYMENT

BRAZIL LOOKS TO HEAVENS FOR NET
Issue: Internet Deployment
For the first time Brazil is using satellites as a means to connect to the
Internet. Universo Online (UOL), the biggest ISP in Latin America, with Star
One and Gilat Satellite Networks is engaged in an effort to expand the
country's Internet access. Only 5 percent of the country uses the Internet
on a regular basis. Internet users in Brazil predominantly use phone lines
and traditional modems. Bigger cities already have some broadband options,
mainly based on cable and ADSL. The biggest problem in Brazil is a lack of
infrastructure. The distant regions of Brazil are still without phone lines.
"As phone companies don't see profitable chances in expanding (their) wires
and cables to distant locations, many (people) become isolated from the
cyberspace with no options at all," said Andr

Communications-related Headlines for 10/25/01

INTERNET & DEMOCRACY
Suppression Stifles Some Sites (WIRED)
Can Congress Convene Online? (WIRED)
Media Group Launches Advocacy Tool (ACM)

CONSOLIDATION
Behind the Telecom Meltdown (CNET)

MICROSOFT
The Gatekeeper: A News.com Special Report (CNET)

E-COMMERCE
You'd Think They'd Learn: Bad Design Kills Web Sites (WP)

INTERNET & DEMOCRACY

CAN CONGRESS CONVENE ONLINE?
Issue: Internet & Democracy
Spooked by anthrax in the Capitol, public officials and opinion makers are
scrambling to figure out how to keep the government running if Congress
can't physically convene. Among the options being considered: having
senators and representatives gather online, in "an electronic Congress." In
an online newsletter article entitled "Legislating By Any Means Necessary,"
the Democratic Leadership Council -- the centrist group once headed by Bill
Clinton -- asserted that a website "could easily be built" that would allow
congress members and their staffs to debate, draft legislation and vote over
the Internet. But don't expect lawmakers to begin voting on their laptops
any time soon, policy analysts caution. Randolph Court, a DLC staffer (and
former Wired News contributor) who helped shape the report, said, "This was
supposed to be a conversation starter. We put this out there not as a
full-baked proposal, not as an end-to-end solution." Currently, the proposal
calls for the site to be open to the public on "a read-only basis, so
citizens could watch their representatives much as they can now on C-Span."
[SOURCE: USAToday, AUTHOR: Noah Shachtman]
(http://www.wired.com/news/politics/0,1283,47841,00.html)

SUPPRESSION STIFLES SOME SITES
Issue: Content
Amid the nationalistic furor sweeping the United States in wake of the Sept.
11 attacks, many government and private websites are yanking content that
could be deemed unpatriotic or risky to national security. While the people
pulling the informational plug say their actions are in the country's best
interests, free speech advocates say the trend is chilling and
anti-democratic. Web portal Yahoo has yanked dozens of sites in the Jihad
Web Ring in the wake of the attacks, according to a story in The Wall Street
Journal. OMB Watch, a watchdog group based in Washington, D.C., is keeping a
list of government agencies that have pulled sensitive information from
their websites since the terrorist attack. OMB Watch spokesman Reece Rushing
said his organization has also been pressured to shut down its database of
geographical environmental hazards, which details chemical usage by American
companies. "We live in a democracy that depends on openness, transparency
and accountability. A big part of that is the free flow of information,"
said Rushing. "In the aftermath of Sept. 11, there might be a tendency to
overlook those values."
[SOURCE: USAToday, AUTHOR: Julia Scheeres]
(http://www.wired.com/news/business/0,1367,47835,00.html)

MEDIA GROUP LAUNCHES ADVOCACY TOOL
Issue: Advocacy
Alliance for Community Media has a new online section, the Legislative
Action Center, which allows you to write to your Member of Congress on
legislation, find information about your federal and state
legislators(including who contributed to their campaigns), find the
different news outlets in your media market, send letters to the editor, and
more! This tool can be used for advocating on Public, Educational, and
Government access issues or other issues you may be interested in.
(http://www.alliancecm.org)

CONSOLIDATION

BEHIND THE TELECOM MELTDOWN
Issue: Consolidation
It is apparent now that the telecommunications frenzy could not possibly
have lasted, according to a panel of telecom experts at the second annual
Wharton Finance Conference. Panelists agreed that companies like Verizon
will probably be buying up threatened companies or picking through the
assets of bankrupt ones. "Within 12 to 18 months, the long-distance and
global telecom world will be collapsing into five or six big players," said
Mitchell Theiss, managing director in the global communications investment
banking group at Merrill Lynch. Blair Levin, managing director at Legg Mason
and former chief of staff at the Federal Communications Commission during
the Clinton, predicted that practically every major telecommunications
restriction will be lifted during the Bush administration. "The restrictions
on owning newspapers and broadcast stations in the same market will be gone.
What cable companies can do with broadcast licenses, that will be changed.
What the old Bell companies can do with Internet access and service, that
will be gone. And, most importantly, limitations on how much of the wireless
spectrum can be used for what, those will be gone," said Levin. "Every rule
that has limited integration is already in the courts and it all may become
moot. That will rush the consolidation of companies. I just hope people will
think through the ramifications."
[SOURCE: CNET News.com, AUTHOR: Knowledge( at )Wharton]
(http://news.cnet.com/news/0-1004-201-7647580-0.html)

MICROSOFT

THE GATEKEEPER: A NEWS.COM SPECIAL REPORT
Issue: Microsoft
With the launch of Microsoft's new operating system as a backdrop, CNET's
News.com concludes its seven day investigation of the impact of Window's XP.
Today's feature looks at user response to the operating system. The past
week has covered potential antitrust issues, Microsoft's strategy, the
challenge to AOL, the emerging .Net service, antitrust, and forced software
and hardware upgrades. Each of the seven articles is a fresh take offering
new perspectives on the meaning of Window's XP and its potential to reshape
the communications landscape. Also available as a single .pdf document
[SOURCE: CNET News.com, AUTHORS: News.com Staff Writers]
http://news.cnet.com/news/0-1003-201-7540650-0.html
See Also:
XP PARTNERSHIPS HAVE A FAMILIAR RING
(http://news.cnet.com/news/0-1005-200-7647727.html)
CONGRESS MUM ON XP SINCE ATTACKS
(http://news.cnet.com/news/0-1003-200-7646319.html)
WINDOWS XP BEING UNVEILED IN N.Y.
(http://www.wired.com/news/reuters/story?story_id=20011025APAP-Windows-XP.ht
mlt)

GROUPS RENEW CALL FOR FTC ACTION ON MICROSOFT XP
Issue: Privacy
EPIC and a coalition of consumer and privacy groups have renewed their calls
for FTC action to protect consumers from the privacy risks associated with
Windows XP and Passport. In a letter sent to the FTC, the groups criticized
the FTC for not upholding its statutory duty to protect consumers in light
of planned release of Windows XP. More information on the groups' previous
FTC complaints is stored on the EPIC Microsoft Passport Page.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

E-COMMERCE

YOU'D THINK THEY'D LEARN: BAD DESIGN KILLS WEB SITES
Issue: E-Commerce
Web-design expert Jakob Nielsen is releasing a new book soon. He recently
was in Washington offering design insight to attendees of a Web conference.
Among his tips: spend 10% of the project's budge on studying how people use
the site, offer translations of your site, go sparingly with the graphics,
and move the search engine box to the home page. Nearly 400 people paid as
much as $1,900 and came from all over the country to hear Nielsen announce
the "top 10 Web design mistakes of 2001" and identify new frontiers in Web
development. The worst design mistake Nielsen noted was e-commerce sites
failing to list prices.
[SOURCE: Washington Post (E01), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-dyn/articles/A48167-2001Oct24.html)

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Communications-related Headlines for 10/23/01

INTERNET CONTENT
Disney's Peer to Peer Pressure (Wired)
Filter Plan Leaks Like a Sieve (Wired)

FCC
FCC Press Conference: "Digital Broadband Migration" Part II (FCC)
FCC Chairman: NextWave Deal will be Difficult (WP)

PRIVACY
Groups Renew Call for FTC Action on Microsoft XP (EPIC)

EARNINGS
AT&T's Core Business Keeps Falling (WP)

INTERNET CONTENT

DISNEY'S PEER TO PEER PRESSURE
Issue: Content
Some media watchers are crying "foul" for Disney's use of a pre-teen
television cartoon to convey an anti-file-sharing message. A recent episode
of Disney's "The Proud Channel" used a plotline where Penny Proud is
introduced to file-sharing by a friend. Penny develops a liking to
downloading music from the Internet. The trouble starts when a musician
calls the police after receiving a smaller royalty check than expected. The
police - who surround Penny's house - threaten to arrest her causing her
parents to take away her computer. But if that's not enough, her downloading
music puts the local record store out of business as well. "Disney has been
merchandising childhood for decades, so this is no surprise," said Ben
Silverman, an independent journalist covering Internet companies. "Disney is
using its entertainment programming to distribute a corporate message aimed
at protecting its assets." The show's creator says he was using the
peer-to-peer storyline only as a backdrop. "Really, it was our way of
telling a love story, dealing with two 14-year-olds and the temptations that
might come up with the relationship." The larger context is Disney's
involvement in legislation being drafted by Sen. Fritz Hollings (D-South
Carolina). The legislation would make it illegal to sell or distribute any
digital device that doesn't "utilize certified security technologies"
approved by the U.S. Commerce Department.
[SOURCE: Wired, AUTHOR: Brad King]
(http://wired.com/news/business/0,1367,47806,00.html)

FILTER PLAN LEAKS LIKE A SIEVE
Issue: Content
A Web-rating system touted by Microsoft, AOL Time Warner and Yahoo as a way
to protect children may be far less useful than its backers have claimed.
The companies predicted at a press conference Tuesday that parents will be
able to configure their child's Web browser to reject sites that either lack
ratings or are self-labeled as having unacceptable amounts of violence, sex
or nudity. But a closer look at the company's media properties illustrates
the perils of trying to glue the Internet Content Rating Association's
(ICRA) tags on all of the domains owned by a corporate organism as complex
as AOL Time Warner. Critics are especially concerned about the ICRA's
ability to deal with journalist content. "If there's no news site exemption,
then the whole system falls apart," says David Sobel of the Electronic
Privacy Information Center, which generally opposes rating and filtering
schemes. "If you don't come up with a tag that lets news through routinely,
then browsers are going to block news sites because they're unrated."
[SOURCE: Wired, AUTHOR: Declan McCullagh]
(http://wired.com/news/politics/0,1283,47808,00.html)

FCC

FCC PRESS CONFERENCE: "DIGITAL BROADBAND MIGRATION" PART II
Issue: Broadband
At a press conference yesterday, Federal Communications Commission Chairman
Michael K. Powell said: "The widespread deployment of broadband
infrastructure has become the central communications policy objective
today." He outlined five specific areas that will guide the Commission's
agenda: (1) Broadband Deployment, (2) Competition Policy, (3) Spectrum
Allocation Policy, (4) Re-examination of the Foundations of Media
Regulation, and (5) Homeland Security. See FCC site for complete speech.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Powell/2001/spmkp109.html)

FCC CHAIRMAN: NEXTWAVE DEAL WILL BE DIFFICULT
Issue: Spectrum
Michael Powell, chairman of the Federal Communications Commission, said
Tuesday it will be difficult for the government to settle its court fight
with bankrupt NextWave. Discussions between NextWave, the Bush
administration and some of the nation's largest mobile telecommunications
companies are continuing, Michael Powell told reporters. With so many varied
interests involved, Powell said an agreement remains "a still very open
question." "This thing has 450,000 moving parts," he said. "It's very
difficult to align them in a way where everyone is satisfied." Under a deal
being considered, NextWave would sell its spectrum rights to its spectrum,
gaining about $6 billion.
[SOURCE: Washington Post, AUTHOR: Jennifer Loven]
(http://www.washtech.com/news/regulation/13328-1.html)

PRIVACY

GROUPS RENEW CALL FOR FTC ACTION ON MICROSOFT XP
Issue: Privacy
EPIC and a coalition of consumer and privacy groups have renewed their calls
for FTC action to protect consumers from the privacy risks associated with
Windows XP and Passport. In a letter sent to the FTC, the groups criticized
the FTC for not upholding its statutory duty to protect consumers in light
of planned release of Windows XP. More information on the groups' previous
FTC complaints is stored on the EPIC Microsoft Passport Page.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

EARNINGS

AT&T's CORE BUSINESS KEEPS FALLING
Issue: Earnings
AT&T reported yesterday a $13.5 billion gain from the spinoff of its
wireless unit. However, its core long-distance telephone business declined
almost 18 percent during the past three months. Excluding the gain from
creating a new wireless company, AT&T's results continue the slide they have
been on for the previous three quarters. Without the gain, the company had a
loss of $2.2 billion (69 cents) for the three months. That compared with
earnings of 35 cents per share a year ago. Armstrong told analysts last
night that he did not expect the company to begin recovering before the end
of the year.
[SOURCE: Washington Post, AUTHOR: Christopher Stern]
(http://www.washtech.com/news/telecom/13325-1.html)

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