March 2002

BROADBAND
Map Files Suit Challenging FCC Internet Cable

INTELLECTUAL PROPERTY
Web Radio's Last Stand
Broadcasters Don't Crave This TV
Timetable Set In Napster Lawsuit

BROADBAND

MAP FILES SUIT CHALLENGING FCC INTERNET CABLE
The Media Access Project (MAP) today filed a lawsuit on behalf of three
citizens groups -- Consumer Federation of America, Consumers Union and the
Center for Digital Democracy -- to challenge the Federal Communications
Commission's classification of Internet access delivered via cable modems to
be an "information service." According to MAP, if not reversed in court, the
FCC's action effectively freed cable operators from having to provide
non-discriminatory "open access" to the public.
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/press/march25release.pdf)

INTELLECTUAL PROPERTY

WEB RADIO'S LAST STAND
A recent ruling by the U.S. Copyright Office states that under the Digital
Millennium Copyright Act (DMCA), online radio stations must pay a royalty
fee of 14/100 of a cent per song, per listener. The ruling is retroactive
through October 1998. In this article, the program director and general
manager of SomaFM, an Internet-only radio station with about 20,000 daily
listeners, discusses the current fee structure to air music online, the
tremendous financial impact the new ruling will have his station and others,
and plans to ensure SomaFM stays on the air. The ruling could result in fee
increases of $1,000 a day for stations like SomaFM and several small
Internet stations have already shut down operations. Webcasters have
responded by launching a "Save Internet Radio" campaign in an attempt to
amend the DMCA to state that Internet broadcasters should be treated the
same as over-the-air broadcasters.
[SOURCE: Salon, AUTHOR, Katherine Mieszkowski]
(http://salon.com/tech/feature/2002/03/26/web_radio/index.html)

BROADCASTERS DON'T CRAVE THIS TV
More than two years after losing a legal battle with the broadcast industry,
defunct ICraveTV is being resurrected with a slightly different name and new
management. ICraveTV, a Canadian company that began streaming television
shows online in 1999, was shut down after a U.S. judge ruled that the
practice violated copyright laws. Herbert Becker, new owner of the new
company, said he is aware of the legal risks associated with putting
broadcast content online, but he believes a somewhat different business
model and changing market conditions will give the new iCrave a better shot
at avoiding lawsuits. "In the three years that have passed since iCrave
originally launched, the networks, broadcasters and content owners have come
to grips with the idea that shows will be going on the Internet," Becker
said. While the company has promised that the new site will employ
technology that prevents viewers from saving programs and thus protects
copyrights, lawyers and content owners are not convinced that such
protections were sufficient to avoid the ire of the broadcast industry.
[SOURCE: Wired, AUTHOR: Joanna Glasner]
(http://www.wired.com/news/business/0,1367,51303,00.html)

TIMETABLE SET IN NAPSTER LAWSUIT
A fel judge ordered Sony, Warner, Universal, EMI and BMG to give Napster
more than 500,000 documents concerning partnersderahip agreements for two
joint ventures offering paid online music subscriptions. Napster is looking
for evidence of copyright misuse, claiming that the record labels should not
receive large damages if they misused their own copyrights to gain a
monopoly in online music subscription services. The documents will be sent
to Napster in the next month and have also been sent to the Justice
Department for an investigation into possible antitrust activities.
Additionally, Napster may take depositions from third-party companies that
partnered with the record labels during a period when licensing agreements
between Napster and the major labels appeared stalled. A lawyer representing
the record companies has said the record labels were not involved in
anti-competitive activities nor did they seek to stop Napster from
re-launching its subscription service.
[SOURCE: Silicon Valley News, AUTHOR: Ron Harris, Associated Press]
(http://www.siliconvalley.com/mld/siliconvalley/news/2939975.htm)

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

DIGITAL DIVIDE
Despite Greater Access, Internet Inequities Remain
Despite Strict Government Control, Clever Cubans Still Get Bootleg
Internet
Norway Pledges Financial Support for ITU Proposal to Bridge Gender
Divide
Swapping Guns for PCs

INTERNET CONTENT
Law Limiting Internet in Libraries Challenged
Using the Internet for Political Campaigns

DIGITAL DIVIDE

DESPITE GREATER ACCESS, INTERNET INEQUITES REMAIN
According to the Commerce Department, 54 percent of Americans were online in
September 2001 with increases among all races, income levels and educational
backgrounds. These recent numbers seem to show that the online population is
increasing in diversity, but a new study is suggesting that the numbers may
be deceiving. New research from the Pew Internet & American life project
has found that only 12 percent of Internet users can log on away from home.
Fifty percent of blacks and Hispanics who use the Internet at public
libraries can not access the Internet at home compared with 30 percent of
whites and 22 percent of Asians. While public access has been extremely
valuable, the lack of privacy and limited hours and terminals can discourage
users from spending time researching new hobbies or developing interests
that could become future careers. More people have begun to look at digital
divide factors that go beyond access, and it has made finding solutions more
difficult. "If it is in schools, libraries or community technology centers,
then this is something for the community," said Mark Lloyd, executive
director for the Civil Rights Forum on Communications Policy. "We have a
great deal of difficulty making the argument that we ought to subsidize poor
people's [home] access".
[SOURCE: Orlando Sentinel, AUTHOR: Associated Press]
(http://www.orlandosentinel.com/news/custom/science/orl-ins-internet032402.s
tory?coll=orl%2Dnews%2Dheadlines%2Dscience)

DESPITE STRICT GOVERNMENT CONTROL, CLEVER CUBANS STILL GET BOOTLEG INTERNET
While the Cuban government has increased efforts to promote information
literacy in workplaces and youth clubs, tight restrictions control private
use of the Internet by average citizens. Hundreds and perhaps thousands of
Cubans have resorted to unauthorized and illegal methods to gain access to
the Internet. The government has seized unauthorized computers, primarily
from government opponents, blaming the restrictions on economic limitations,
not political ones. Cuba had 4.4 phones per 100 people in 2000 and even for
those with phone lines Internet service is extremely slow with the price of
Internet accounts far exceeding average salaries. When Cubans do surf the
Web it is on a network of national intranets. Over 60,000 of the 11 million
citizens use island-wide email accounts. Internet use is governed by a 1996
law stating that access would be selective and granted "in a regulated
manner...giving priority to the entities most relevant to the country' s
life and development." In an effort to get around these restrictions,
hundreds of Cubans have bought modem-equipped computers on the black market
and use pirated accounts to gain access to international email and the World
Wide Web.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.siliconvalley.com/mld/siliconvalley/news/2928332.htm)
See Also:
CUBA BANS PC SALES TO PUBLIC
[SOURCE: Wired, AUTHOR: Julia Scheeres]
(http://www.wired.com/news/politics/0,1283,51270,00.html)

NORWAY PLEDGES FINANCIAL SUPPORT FOR ITU PROPOSAL TO BRIDGE GENDER DIVIDE
The Norwegian government has pledged a financial contribution in support of
gender-based activities of the Telecommunication Development Bureau (BDT) of
the International Telecommunication Union. If approved by the World
Telecommunication Development Conference, the proposed contribution would
enable the BDT to set up a full-time unit to mainstream gender issues into
the ITU. Patrica Faccin, Secretary to the Task Force on Gender Issues
(TFGI), noted that such a unit in the BDT would enable ITU to make greater
progress in gender analysis, collection of disaggregated statistics and the
integration of a gender perspective in policy and regulatory issues. "Making
better use of human resources and skills of women significantly adds to the
pool of talent which will be needed in the new information society," said
Eva Hildrum, Director-General of Posts and Telecommunications at the
Ministry of Transport and Communications. The TFGI shadows the six programs
of the ITU's Valletta Action Plan and fosters gender awareness in the
telecom sector in developing countries. The results of the latest survey on
gender and the development sector may be found at
http://www.itu.int/ITU-D/gender/projects/reports/4-7-GendQustnrSurvey.pdf.
[SOURCE: ITU Press Release]
(http://www.itu.int/newsroom/press_releases/2002/09.html)

SWAPPING GUNS FOR PCS
A Sierra Leonean entrepreneur, Francis Steven George, is planning to set up
a vocational training center to teach computer skills to child soldiers in
Sierra Leone. Hoping to give something back to his country, George envisions
using computer centers as a way to rehabilitate thousands of young people
who were taken away from school during the mid-1990s to fight in the civil
war. George hopes that the project will be a first step towards developing
West Africa as a regional hub for the computer industry. Despite major
obstacles, George remains optimistic about the project, saying "if you have
the right people with the right skills, the infrastructure and all the other
elements will quickly fall into place." George has already won the support
of the Norwegian government and various private Norwegian groups are
interested in providing financial support for the project.
[SOURCE: BBC News, AUTHOR: Alfred Hermida]
(http://news.bbc.co.uk/hi/english/sci/tech/newsid_1886000/1886248.stm)

INTERNET CONTENT

USING THE INTERNET FOR POLITICAL CAMPAIGNS
Campaign fund-raising is moving to the Internet. A new congressional ban on
unlimited 'soft money' donations will make it more important for campaign
fund-raisers to collect large numbers of smaller checks, according to the
San Jose Mercury News. Enter the Internet. Political parties are starting to
make better use of Web sites and e-mail to reach more potential donors at
far less expense than possible through traditional direct mail and telephone
solicitations. Both the Democratic and Republican parties are quoted as
having plans to more aggressively integrate Internet activities into their
fundraising and grass-roots campaigns. While political fund-raising is on
the rise, a recent study by the Bivings Group, reported in Newsbytes, states
that Internet usage by political campaigns is surprisingly low. Bivings
found that only 29 percent of the incumbent Senators and Representatives up
for election in 2002 have clearly marked campaign Web sites. Further, the
study found that, of the 2002 campaign sites that were operational, only
about 42 percent were designed to take secure donations over the Internet.
The study also found that Republicans were more likely than Democrats to
maintain functioning Web sites and were more likely to allow onlne
donations. The Bivings Group study may be found at
(http://www.bivings.com/campaignstudy/index.pdf)
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.siliconvalley.com/mld/siliconvalley/news/editorial/2928331.htm)
And
STUDY SAYS POLITICAL CANDIDATES NOT USING WEB
[SOURCE: Newsbytes, AUTHOR: David McGuire]
(http://www.newsbytes.com/news/02/175417.html)

LAW LIMITING INTERNET IN LIBRARIES CHALLENGED
Today is the beginning of hearings to discuss the future of libraries and
define the increasingly complicated role of libraries. A coalition of
libraries, Web sites and library patrons is arguing that the passage of the
Children's Internet Protection Act last December, requiring schools and
libraries to use Internet filtering software, will endanger the mission of
libraries to provide access to information. The law will deny federal
funding and technology discounts to any schools and libraries without a
"technology protection measure" such as a filter to block access to Web
sites considered harmful to children. Those in favor of the law such as Sen.
John McCain (R-AZ), the bill's co-sponsor, has said, "it allows local
communities to decide what technology they want to use, and what to filter
out, so that our children's minds aren't polluted." Judith F. Krug, director
of the American Library Association's Office for Intellectual Freedom stated
that the law "is going to affect everyone's First Amendment right to get
access to information that is perfectly legal." The case will be heard in
the U.S. District Court for the Third Circuit with any appeals going to the
Supreme Court.
[SOURCE: The New York Times, AUTHOR: John Schwartz]
(http://www.nytimes.com/2002/03/25/national/25LIBR.html)

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

BROADCASTING
A Voice In the Wilderness
Facing Outcry, NBC Ends Plan to Run Liquor Ads
Pentagon's Radio Afghanistan Goes Off The Air

INTERNET
Experts Doubt Pennsylvania Child Pornography Law Will Work
New Zealand Drafts Law Requiring 'Interception' Software
Perspective: The Privacy Imbroglio

BROADBAND
VCs Hit Up Washington For A Broadband Policy

SPECTRUM
NTIA Spectrum Summit

BROADCASTING

A VOICE IN THE WILDERNESS
The Federal Communications Commission (FCC) is expected to repeal its rule
prohibiting single ownership of a broadcast TV station and a newspaper in
the same community. According to Frank Blethen, such a move "will
dramatically accelerate the country's already narrow concentration of media
control," and "lead directly to the loss of an independent press and the
diversity of voices essential to the survival of a democracy." Blethen
writes that the largest conglomerates are advocating the elimination of
ownership caps, "as their ticket to grow profits through new acquisitions
and monopolistic market control." He is disturbed by the absence of
discussion about the social value of an independent press and a diversity of
voices. Because metropolitan areas can no longer support competing metro
newspapers, Blethen explains, "the separation of TV and newspaper ownership
in local communities vital to preserve multiple sources of news and a
diversity of community voices."
[SOURCE: New York Times, AUTHOR: Frank A. Blethen (CEO and publisher of The
Seattle Times)]
(http://www.editorandpublisher.com/editorandpublisher/headlines/article_disp
lay.jsp?vnu_content_id=1430591)

FACING OUTCRY, NBC ENDS PLAN TO RUN LIQUOR ADS
NBC has ended a plan to run the first hard liquor commercials on national
broadcast network television. NBC had designed guidelines that included
requiring liquor companies to run four months of "social responsibility" ads
encouraging designated drivers and responsible drinking before running
commercials for their liquor. While the plan did have some supporters
including the Cato Institute and the American Enterprise Institute, NBC
received considerable criticism from Congress, federal regulators, the
American Medical Association and public advocacy groups. In a telephone
interview from the NBC network headquarters, Alan Wurtzel, president for
research said, "We went into this knowing we'd be plowing new ground and it
would not come without controversy. We said we would do it as responsibly
as we could, and after listening to the House and Senate, to the interest
groups, we felt it was not appropriate to go to the next step at this
point."
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
(http://www.nytimes.com/2002/03/21/business/media/21ADCO.html?pagewanted=pr
int)
(Requires subscription)

PENTAGON'S RADIO AFGHANISTAN GOES OFF THE AIR
The Pentagon is ending six months of broadcasting messages and music as part
of their psychological warfare tactics against the Taliban. The 193rd
Special Operations Wing of the Pennsylvania Air National Guard flew day and
night spreading messages for Afghan civilians and the Taliban. The messages
to civilians included information about food drops, when to stay indoors or
away from American fighting, and stating it was terrorists, not Afghan
civilians who were under attack. The 193rd is the U.S. military's only unit
of its kind consisting of six C-130s capable of transmitting television
broadcasts and in the near future, live satellite feeds. The programs are
usually broadcasted recordings in local languages, but at times native
speakers are brought aboard to do live broadcasts.
[SOURCE: USA Today, AUTHOR: Associated Press]
(http://www.usatoday.com/news/world/2002/03/20/pentagon-radio.htm)

INTERNET

EXPERTS DOUBT PENNSYLVANIA CHILD PORNOGRAPHY LAW WILL WORK
Legal and online experts are doubtful of the effectiveness of Pennsylvania's
attempt to reduce online child pornography. The new law requires Internet
service providers (ISPs) to block access to objectionable Web sites. Two
experts interviewed for this article argue that the state law is at best an
unfairly imposed extra expense, and at worst is unconstitutional. "Everyone
agrees that child pornography is bad," says telecom policy authority Glenn
Manishin. "But the idea of restricting content by imposing a prohibitive
cost on a third party - ISPs - causes a problem. These ISPs will have to
install software to deny access to an ever-changing list of sites." Manishin
suggests that there are two ways to get rid of an illegal product: cut off
the supply or the demand. The new law is somewhere in between. Bennett
Haselton, head of the anti-Internet-filtering Web site Peacefire.org, stated
that the legislation "reeks of lawmakers wanting to create the appearance of
doing something, rather than actually doing something." The law requires
ISPs to remove or disable access to child pornography sites within five
business days of notification by the state attorney general. "Many of these
sites operate from overseas. Even if the content could be blocked," says
Haselton, "the attorney general's office would have to spend all of its time
doing this. These sites appear and disappear on a regular basis."
[SOURCE: Newsbytes, AUTHOR: Michael Bartlett]
(http://www.newsbytes.com/news/02/175358.html)

NEW ZEALAND DRAFTS LAW REQUIRING 'INTERCEPTION' SOFTWARE
Telecommunication network operators and Internet service providers in New
Zealand will be legally obligated to install software that will allow police
or the secret service to eavesdrop on phone calls or e-mail messages. The
new bill, which is being drafted right now, will require all telecom and
ISPs to be "interception-capable." E-mail and vice messages may be
intercepted by carriers when a High Court warrant is presented to the
carriers. "This law on interception capability will bring us into line with
legal requirements already in place in a number of different countries
including the United States, Germany, Netherlands and the U.K.," says
Associate Minister of Justice Paul Swain. According to Swain, the government
is expected to pay for this provision for existing fixed and mobile networks
to be implemented within 18 months of enactment of the legislation. Past
that, however, network operators will have to bear the cost of installing
snooping software.
[SOURCE: Newsbytes, AUTHOR: Adam Creed]
(http://www.newsbytes.com/news/02/175371.html)

PERSPECTIVE: THE PRIVACY IMBROGLIO
[Commentary] With approximately 50 privacy-related laws scheduled for review
in Congress, David Holtzman feels it is time to consider what privacy is and
where we want to make our policy. Holtzman suggests that the proper forum
for the privacy debate is not Congress, but in the corporate boardrooms
across America. Currently, American companies write privacy statements as a
safeguard against legal action. Holtzman is concerned that these statements
(which he describes as "legal Muzak") do nothing for the long-term
maintenance of the customer relationship, do not enhance a company's
reputation and do not strengthen brands. Holtzman concludes that "it is easy
to fall into the trap of using legal restrictions and regulatory covenants
to create a universal definition of a prickly issue like privacy... Using
yes-or-no compliance as a litmus test creates a dichotomy that encourages
heated debate without truly understanding what the issues are and associated
trade-offs are. As a result, current developments are doing little to
guarantee the long-term happiness of businesses and consumers."
[SOURCE: CNET, AUTHOR: David Holtzman]
(http://news.com.com/2010-1075-865409.html)

BROADBAND

VCs HIT UP WASHINGTON FOR A BROADBAND POLICY
Many in the venture capital community see the promise of increasing
broadband services in the United States. This year the VC community is
stepping up activities to lobby for a national broadband policy they believe
would accelerate the availability of broadband services and stimulate
investments. "This could be an incredible catalyst to the economy", said
Guy Hoffman, senior partner at venture-capital firm TL Ventures. "If the
(large phone-service providers) start building out infrastructure, that's
obviously going to spur the equipment makers, which would also spur
investment in start-up companies. It could represent a tremendous boon to
our economy." In a victory for the telecom industry, the Tauzin-Dingell bill
recently passed the House, but is not expected to pass the Senate because of
concerns that the proposed deregulations would be anticompetitive. Despite
the expected failure of Tauzin-Dingell, the venture capitalists plan to
continue pushing for a national government policy. "We're not advocating for
a huge government infrastructure project, said Paul Brownell, vice president
for public policy at National Venture Capital Association, "but there are a
lot of steps the government can take."
[SOURCE: Wall Street Journal, AUTHOR: Jonathan Burns]
(http://online.wsj.com/article/0,,SB1016641946952814160,00.html?mod=technolo
gy%5Ffeatured%5Fstories%5Fhs)
(Requires subscription)

SPECTRUM

NTIA SPECTRUM SUMMIT
The National Telecommunications and Information Administration (NTIA) will
host a summit April 4-5 in Washington DC to identify more efficient ways to
manage the nation's airwaves. The demand for radio spectrum from both
commercial industries and the government has increased tremendously in
recent years. The goals of the summit will be to develop policies to
increase efficient use of the spectrum; provide spectrum for new
technologies; and improve the effectiveness of domestic and international
spectrum management. The keynote speaker will be DOC Secretary of Commerce
Donald L. Evans. Other speakers include FCC Chairman Michael Powell and NTIA
Assistant Secretary for Communications and Information Nancy Victory. The
meetings are open to the public with seating available on a first-come,
first-served basis.
[SOURCE: National Telecommunications and Information Administration, AUTHOR:
NTIA]
(http://www.ntia.doc.gov/ntiahome/summit/index.html)

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

BROADBAND
Groups Plan Lawsuit Against FCC Cable Modem Ruling (NB)
Broadband Providers Find Formula To Lure Asian Surfers: Cheap Plans
(WSJ)

INTERNET
Net Oversight Group Sued By Member (USA)
Pay for Online Content? (WIRED)
Pa. Law Requires ISPs To Block Child Pornography (USA)

EDTECH
Reading Reaps Rewards (WP)

DIGITAL DIVIDE
The Many, The Skeptical, The Folks Without PC's (NYT)

BROADBAND

GROUPS PLAN LAWSUIT AGAINST FCC CABLE MODEM RULING
Issue: Broadband
In response to last week's FCC ruling exempting cable ISPs from being
required to open their networks to competitors, several consumer groups and
Internet service providers are considering a lawsuit. Although the groups
are considering other options, Media Access Project Deputy Director Cheryl
Leanza said that a lawsuit protesting the FCC ruling is highly likely. Media
Access Project is joined by the Center for Digital Democracy, the Consumer
Federation of America and some unidentified ISPs. The FCCs decision
classified cable ISPs as "information services" rather than
"telecommunications services." Telecom services are required by law to offer
network access to competitors. Information services are not required to open
their networks. FCC Chairman Michael Powell spoke in favor of the ruling,
noting that the FCC needs to spur more broadband investment. Those against
the ruling, including FCC Commissioner Michael Copps, argue that the move
would benefit dominant providers, create great uncertainty in the broadband
market and limit consumer choice.
[SOURCE: Newsbytes; AUTHOR: Robert MacMillan]
(http://www.newsbytes.com/news/02/175267.html)

BROADBAND PROVIDERS FIND FORMULA TO LURE ASIAN SURFERS: CHEAP PLANS
Issue: Broadband
A period of tremendous growth for Asian broadband providers has been the
result of low monthly fees for consumers. According to Pyramid research, a
$25.38 monthly fee from Pacific Century Cyberworks, Ltd. resulted in a 75%
jump in broadband subscriptions. Softbank Corp. started a price battle by
cutting prices in half for their Yahoo Broadband service. Today, each month
more than 300,000 new subscribers sign up in Japan. Two years ago in South
Korea prices stabilized at $27. Today 55% of South Korean households have
broadband access. While the sharp rise in subscribers is helping broadband
providers reach profitability, the earnings are slim. Andrew Chetham, an
analyst at Gartner Group in Hong Kong said, " Access providers are facing a
problem. They now have lots of broadband subscribers. But what do you do
next?" John Barrett, senior analyst at Pyramid agrees, "It'll be very
challenging for them to make money on just access alone. Revenues lie in the
content."
[SOURCE: Wall Street Journal, AUTHOR: Suh Kyung Yoon]
(http://online.wsj.com/article/0,,SB1016467429562490400,00.html?mod=telecomm
unications%5Fprimary%5Fhs)
(Requires subscription)

INTERNET

NET OVERSIGHT GROUP SUED BY MEMBER
Issue: Internet
Karl Auerbach, a director of the Internet Corporation for Assigned Names and
Numbers (ICANN) filed a lawsuit against ICANN claiming he has been denied
access to records related to travel, payroll, and other day-to-day
operations. Auerbach has accused the ICANN staff of not complying with
California state law and stated, "ICANN management has denied me the tools I
need to exercise independent judgment and fulfill my duties as director."
Auerbach is one of the few ICANN directors chosen by direct elections and
has been a vocal critic of the organization. The Electronic Frontier
Foundation will represent Auerbach in the lawsuit.
[SOURCE: USA Today, AUTHOR: Reuters]
(http://www.usatoday.com/life/cyber/tech/2002/03/18/icann-sued.htm)

Pa. LAW REQUIRES ISPs TO BLOCK CHILD PORNOGRAPHY
Issue: Internet
A new Pennsylvania law will require Internet Service Providers to block
access to child pornography for all Pennsylvania customers. Under the law,
the state attorney general's office will send ISPs a list of Web sites to
block. Believed to be the first of its kind, the law carries penalties of
$5000 for first offenders, $20,000 for second offenders, and increases to
$30,000 and up to 7 years in prison for third time offenders. The ACLU has
given the law a seal of approval and Larry Frankel, the chapter's executive
director stated that someone whose material is cut off could seek a court
hearing. ISPs consider the law impractical and point out that they are
unable to control content. "Once you use my service to get on the Internet,
I have no way of controlling where you go and what you see", said Sue
Ashdown, director of the American Internet Service Provider Association.
Kevin Harley, a spokesman for the state attorney general's office has said
they will be expanding the child sexual exploitation unit.
[SOURCE:USA Today, AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/2002/03/18/isp-law.htm)

PAY FOR ONLINE CONTENT?
Issue: Internet
Online publishing and entertainment firms hoping to start charging for
online content may be in for a disappointment. A new Jupiter Media Matrix
survey reveals that 70% of online adults surveyed can't understand why
anyone would pay for any online content. "If anything," says Jupiter Media
Matrix analyst David Card, "people are less willing to pay than they were 18
months ago." When respondents were asked what they would be willing to pay
for if free content vanished, 63 percent replied "nothing." No category drew
more than single-digit responses from those willing to spend. There are
successful online subscription services (Sony Online and the Wall Street
Journal, for example), but in order to make money, as Martin Niseholtz, CEO
of The New York Times Digital suggests, Internet content providers will have
to find a blend of paid products and free, advertiser-supported fare.
[SOURCE: Wired News; AUTHOR: Noah Shachtman]
(http://www.wired.com/news/ebiz/0,1272,51146,00.html)

EDTECH
READING REAPS REWARDS
Issue: EdTech
Schools across the nation are turning to computer programs to help turn a
generation of TV viewers into avid readers. Programs such as Scholastic
Reading Counts! and Accelerated Reader motivate reading by assigning points
to books. Students select books to read and then take comprehension tests on
computer to earn their points. Although University of Maryland human
development professor John T. Guthrie says that there is little research
indicating whether such incentive programs have more success than other
methods, "there are cases where kids start reading for points and get hooked
on a book." Some parents, and students, question point assignments based on
a book's length rather than on the strength of the prose. Nevertheless, many
educators and parents seem to feel that, if carefully supervised, the point
system poses no harm and can be a very beneficial tool in producing active
readers.
[SOURCE: Washington Post, AUTHOR: Jay Mathews]
(http://www.washtech.com/news/software/15726-1.html)

DIGITAL DIVIDE

THE MANY, THE SKEPTICAL, THE FOLKS WITHOUT PC'S
Issue: Digital Divide
Personal computer makers made some profits during the holidays by
drastically reducing prices and offering free extras. However, a new survey
suggests that current marketing efforts are continuing to miss the 39% of
U.S. households that do not own a PC. In a semiannual survey, Odyssey, a
market research firm, polled 2,500 households and found that consumers were
not so concerned about computer prices but where confused by technology and
often did not feel a particular reason to own a PC. Sean Baenen, a Managing
director at Odyssey, used this data to point out the flaw in computer makers
marketing strategies. "All the data points to the fact that PC
manufacturers have been trying to solve problems that most consumers don't
have - price, and more technology for the price." After doubling from 1994
to 2000, the penetration rate of PC's has leveled off at sixty- one percent
of the nation's households. PC owners are keeping them longer with only 9
percent saying they were "extremely likely" to buy a computer in the next
six months. Mr. Baenen said of computer makers "If they're betting on
upgrades, they're going to be in trouble."
[SOURCE: New York Times, AUTHOR: Chris Gaither]
(http://www.nytimes.com/2002/03/18/technology/18PENE.html?ex=1017480367&ei=1
&en=da6d6e85f15e77cd)

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