July 2002

COMMUNICATIONS-RELATED HEADLINES for July 31, 2002

DIGITAL DIVIDE
Groups Lobby on Funding to Bridge U.S. Digital Divide

TELECOM
FCC Chief Urged to Shift View

INTERNET
ACLU Pushes for Open Access
ICANN Board Member Wins Ruling
White House Sounds Call For New Internet Standards
Saudis block 2,000 Web Sites

DIGITAL DIVIDE

GROUPS LOBBY ON FUNDING TO BRIDGE U.S. DIGITAL DIVIDE
Representatives of civil rights and educational groups gathered at a
congressional briefing in Washington D.C. last week to argued against the
proposed elimination of two federally funded programs that help provide
technology in underserved communities. At Friday's briefing -- co-sponsored
by the Congressional Hispanic, Black and Asian Pacific Caucuses on Capitol
Hill -- the groups discussed a recent report by the Benton Foundation and
the Leadership Conference on Civil Rights (LCCR).
The report, "Bringing a Nation Online: The Importance of Federal
Leadership," found that a lack of technology skills plays a significant role
in furthering economic and social divisions across the country. While 55
percent of white Americans have Internet access in their homes, only 32
percent of the Hispanic population and 31 percent of African Americans are
connected at home. The report quotes statistics from a U.S. Department of
Commerce report issued in February. "This issue of access [to internet
technology] is a major one, and it is a matter of civil rights and economic
development," said Johnny Villamil-Casanova, executive vice president of the
Aspira Association, a nonprofit organization devoted to the education and
leadership development of Latino youth.
[SOURCE: Yahoo.com, AUTHOR: Jeffrey Allen, OneWorld US]
(http://story.news.yahoo.com/news?tmpl=story2&u=/oneworld/20020729/wl_onewor
ld/1032_1027972881)

TELECOM

FCC CHIEF URGED TO SHIFT VIEW
Several Democrats on a Senate panel yesterday urged Federal Communications
Commission chairman Michael Powell to take a more active role in guiding the
telecommunications industry out of financial turmoil. Senator Max Cleland
(D-GA) and others urged Powell to reassess his view that less regulation of
the marketplace, not more, would be in the best interest of consumers.
Powell stood by his approach, telling senators that the consolidation of key
players is inevitable and would relieve the competitive pressure that has
caused marginal-cost pricing. Gene Kimmelman, director of the Washington
office of Consumers Union, expressed frustration at Powell's continued
deregulatory path. "His solution for the current telecommunication implosion
was to raise consumers' telephone rates, allow more mergers and continue
deregulation. It's a recipe for disaster."
[SOURCE: The Washington Post, AUTHOR: Christopher Stern]
(http://www.washingtonpost.com/wp-dyn/articles/A23447-2002Jul30.html)

INTERNET

ACLU PUSHES FOR OPEN ACCESS
While a recent study by The Yankee Group indicated that cable Internet
providers are likely to be the biggest beneficiaries of broadband growth,
the FCC has voted to allow cable companies to keep their networks closed to
smaller competitors -- while at the same time the cable industry is becoming
more consolidated. "We're at a pivotal moment here," American Civil
Liberties Union associate director Barry Steinhardt said. "I think it's
inevitable that as the choice (of Internet providers) decreases, it will
limit the choices of content that people can access."
For the short term, the suggested solutions would require only minor repair
and maintenance and not any major upgrading or building. Cable companies
have claimed that immense technical and financial burdens make it unfeasible
to open networks to competitors. A report commissioned by the ACLU, however,
examines current cable network systems and offers technical solutions for
cable companies to open their networks to competing Internet service
providers. The report finds that opening the networks is both feasible and
low-cost. The ACLU and consumer advocacy groups are concerned that if cable
companies are not forced to open their networks, American consumers may face
fewer ways of getting to the Internet -- and once on the Internet may find
that their content is limited.
[SOURCE: CNET News, AUTHOR: Troy Wolverton]
(http://news.com.com/2100-1033-947274.html?tag=fd_top)

ICANN BOARD MEMBER WINS RULING
Los Angeles Superior Court Judge Dzintra Janavs ruled Monday that under
California law, a board member of ICANN must be granted access to sensitive
information about how it operates. Karl Auerbach, who is on the board of
ICANN, went to court to gain access to private ICANN documents. Auerbach was
one of five at-large board members chosen through an online voting process
and sees his role as prompting more openness and disclosure in the future,
even after he's no longer on the board. Fellow board member Andy
Mueller-Maguhn welcomed the court ruling, although somewhat cautiously. "It
looks like transparency at ICANN is going to improve," he said. "After
everything that has happened in the last months, indeed I am surprised to
hear about a decision that sounds reasonable coming from a U.S. court."
[SOURCE: Wired, AUTHOR: Steve Kettmann]
(http://wired.com/news/politics/0,1283,54199,00.html)

WHITE HOUSE SOUNDS CALL FOR NEW INTERNET STANDARDS
The Bush administration's cyber security czar, Richard Clarke, said it might
be time to replace the "creaky, cranky" 20-year-old protocols that drive the
Internet with standards better able to accommodate a flood of new wireless
devices. Wireless devices, it is feared, may introduce large security holes
to the network. The White House is working with the private sector to draft
a national plan to secure the country's most vital computer networks from
cyber attack. The plan, expected to be released September 18, will include
several policy recommendations for wireless security. Clarke stated that the
administration had an obligation to take an active role in ensuring the
security of the Internet, especially since nearly 81 percent of major
businesses today use, or plan to use, wireless networks.
[SOURCE: The Washington Post, AUTHOR: Brian Krebs]
(http://www.washingtonpost.com/wp-dyn/articles/A22535-2002Jul30.html)

SAUDIS BLOCK 2,000 WEB SITES
A Harvard Law School report has found that the Saudi government has blocked
approximately 2,000 Web sites. Most of the blacklisted sites were sexually
explicit or about religion, but the government also blocked sites about
women, health, drugs and pop culture. "We found blockage of quite a bit of
content beyond political content and pornography," said researcher Ben
Edelman. Unlike other countries the researchers tested, Saudi Arabia was
willing to allow tests of their proxy servers. Different, too, from many
other countries, is the Saudi openness about their censorship of the Web. If
a site is blacklisted, the user is directed to a page that explicitly states
that access to the site has been denied. "It comes as no surprise that the
same countries that would be concerned about certain books and newspapers
crossing their borders would also be concerned to find similar information
crossing their borders electronically over the Internet."
[SOURCE: BBC News, AUTHOR: Alfred Hermida]
(http://news.bbc.co.uk/1/hi/technology/2153312.stm)

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

Communications-Related Headlines for July 30, 2002

INTERNET
Excess Haunts Internet Sector
Reality Bytes
Independent Label Waives Web Radio Fees

DIGITAL DIVIDE
Digital Age Reaches Melbourne's Poor

TELECOM
Chairman Powell's Testimony to Senate Commerce Committee

INTERNET

REALITY BYTES
The global non-profit, One World International, has just launched it's own
version of reality TV. OneWorld TV, available on the Internet, features
short contributions from film-makers, from around the world. Subjects range
from Aids and global warming to the conflict in the Middle East. In a unique
twist to the reality genre, OneWorld TV also allows visitors to upload their
own films to the site, either beginning new strands or adding to other
people's stories. "Our aim was to reinvent television for the web," explains
OneWorld International director, Peter Armstrong. "There is no point in
trying to broadcast 30-minute documentaries over the web, and we didn't just
want to drop clips into a database, which would have been really boring.
Because it's interactive, people can take the story in whichever direction
they want, and can even become part of the storytelling process themselves."
Like an internet bulletin board, contributions to the site are overseen by a
moderator.
[SOURCE: The Guardian]
(http://media.guardian.co.uk/mediaguardian/story/0,7558,764719,00.html)

INDEPENDENT LABEL WAIVES WEB RADIO FEES
Artemis Records said on Monday that it would waive Internet radio station
fees for music played from the independent label's catalog for one year.
"We're a small company with a lot of music that doesn't get played on
commercial radio," Artemis chief executive Danny Goldberg said. "I
appreciate the Webcaster. In terms of the future, the diversity they offer
is valuable to a label like ours. I wanted to make a gesture of support."
Johathan Potter, director of Digital Media Association praised Artemis,
saying that "Danny Goldberg is ahead of his time in every way. He recognizes
that Internet radio listeners are more intense music fans and they buy more
music than traditional music fans." The Recording Industry Association of
America has no objection to Artemis' move.
[SOURCE: CNET News, AUTHOR: Reuters]
(http://news.com.com/2100-1023-947055.html?tag=fd_top)

EXCESS HAUNTS INTERNET SECTOR

[Comentary] The crisis now facing the Internet sector, with the bankruptcies
of giants like WorldCom, and Global Crossing, has been compared to the fate
of the road industry following it's boom in the late 19th and early 20th
centuries. But the scope of overbuilding in the Internet sector far
surpasses the railroads. In the past four or five years, telecom companies
easily built 20 times the capacity of what could be economically sustained.
In the 1990s, it was predicted that millions of Americans would upgrade to
''broadband'' home Net connections, but today only about 13 million homes
have signed up. With Hollywood and the music industry failing to figure out
how to sell movies and music over the Net without engendering massive
piracy, millions of Americans see no compelling reason to spend the $40 or
$50 a month for broadband - leaving the prospect of a near-term,
consumer-driven solution to the Net glut remote.
[SOURCE: Boston Globe, AUTHOR: Peter J. Howe]
(http://www.boston.com/dailyglobe2/210/business/Excess_haunts_Internet_secto
r+.shtml)

DIGITAL DIVIDE

DIGITAL AGE REACHES MELBOURNE'S POOR
Thanks to a local initiative called Reach For The Clouds, things are
changing for residents in a Melbourne, Australia public-housing estate. The
project is hoping to deliver to each of the 770 homes a free refurbished
computer and the chance to get online. Residents will be able to use e-mail
and a community intranet service free, but will pay to connect to the Web.
The project, run by the nonprofit, Infoxchange, has already wired the entire
community with an ADSL broadband system. Although the Linux operating system
was considered for the computers, Microsoft won out in the end for long-term
practicality. Microsfot's operating system handles human languages better
than Linux and it ties in with what residents are likely to encounter
elsewhere. Two massive hurdles for the project are the A$4 million
(approximately US$2 million) price tag and the complications arising from
the fact 38 languages are spoken in the community. Infoxchange is hoping to
use the lessons learned from this first project to tackle Melbourne's 13
other public-housing developments.
[SOURCE: BBC News, AUTHOR: Andrew Webster]
(http://news.bbc.co.uk/1/hi/technology/2153643.stm)

TELECOM

CHAIRMAN POWELL'S TESTIMONY TO SENATE COMMERCE COMMITTEE
Today, FCC chairman Michael Powell has issued a statement before the Senate
Committee on Commerce, Science and Transportation. The statement, "Financial
Turmoil in the Telecommunications Marketplace: Maintaining the Operations of
Essential Communications," outlines the FCC's six-step program for recovery
from the recent telecommunications crisis. Chairman Powell's six steps are:
1) protect service continuity, 2) root out corporate fraud, 3) restore
financial health, 4) acknowledge prudent industry restructuring, 5) provide
new revenue through new services, and 6) reform economic and regulatory
foundations. In the statement, Powell requests that "Congress also assist us
in our efforts by providing the Commission with more tools to protect and
promote the public interest." Specifically, Powell asks Congress to "extend
and clarify [the FCC's] section 214 discontinuance authority" which he feels
is "at best unclear and, at worst, does not extend to certain critical
services such as the Internet backbone." Secondly, Powell asks for an
increase in the maximum allowable fines for illegal activity. Lastly, Powell
urges Congress to implement the "right regulatory environment" for broadband
services as broadband, he states, is very likely to be the key for long-term
recovery of the telecommunications industry and for national economic
growth.
[SOURCE: Federal Communications Commission]
(http://www.fcc.gov/)

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

Communications-Related Headlines for July 29, 2002

INTERNET
Dot-Org Decision Looms Large For Noncommercial Speakers=20
U.K. Libraries Jump Into the Net

INTELLECTUAL PROPERTY
Pirate This, Go To Jail
Movie Studios Press Congress in Digital Copyright Dispute
New Bill Would Save Small Webcasters

INTERNET

DOT-ORG DECISION LOOMS LARGE FOR NONCOMMERCIAL SPEAKERS
This October, "dot-org" is slated to get a new landlord when VeriSign
relinquishes its hold on the domain. Dot-org is indispensable to =
consumer
advocates, public interest groups and political dissidents, who see the
dot-org domain as the "only place on the Internet devoted to =
noncommercial
speech." Initially, officials at the Internet Corporation for Assigned =
Names
and Numbers (ICANN) planned to open bidding only to nonprofit groups, =
but
they later decided to open the contract to all comers in an effort to =
gather
as many qualified bids as possible. ICANN president Stuart Lynn said =
the
first priority is to find a stable operator to replace VeriSign. ICANN =
plans
to award the contract in September 2002.
[SOURCE: The Washington Post, AUTHOR: David McGuire]
(http://www.washingtonpost.com/wp-dyn/articles/A12982-2002Jul28.html)

U.K. LIBRARIES JUMP INTO THE NET
By the end of this year, the U.K. hopes to have all the country's more =
than
4,000 libraries linked to the Internet. The project, dubbed People's
Network, is expected to cost over 100 million pounds and will result in
30,000 installed terminals "stuffed with digital delights." Libraries =
have
proven to be the natural place to get people online. More than 60 =
percent of
the population holds a library card and book borrowing is five times =
more
popular than going to a professional soccer match. To help patrons get
familiarized with the technology, many libraries are offering starter
courses, like Internet for the Terrified, and online clubs. Thus far, =
the
project has been controversy-free, unlike similar library projects in =
the
U.S. which have been "dogged by the three F's: filtering, free speech =
and
filth." The United Kingdom does not have a guarantee of free speech and =
is
thus letting local discretion decide the issue.
[SOURCE: Wired News, AUTHOR: Daith=ED =D3 hAnluain]
(http://www.wired.com/news/culture/0,1284,54151,00.html)

INTELLECTUAL PROPERTY

PIRATE THIS, GO TO JAIL
This past February, Senator Joseph R. Biden Jr. (D-DE) released a =
report
written by his aides and titled "Theft of American Intellectual =
Property:
Fighting Crime Abroad and At Home." A few weeks later, the Senator
introduced a bill targeting large-scale pirates who manufacture fake =
Windows
holograms. This month, in a little-noticed move, the legislation was
rewritten to encompass technology used in digital rights management. =
The
original bill covered only "physical features" such as holograms or =
special
boxes used to certify software. Biden's new bill covers "any feature" =
used
to guarantee authenticity and would make it a federal felony to trick
devices into playing music or running computer programs. Breaking the =
law
could result in up to five years in prison and cost civil penalties of =
up to
$25,000. Biden's additions to copyright law come as Congress is under
increasing pressure from Hollywood and the music industry to curtail =
digital
piracy.=20
[SOURCE: CNET, AUTHOR: Declan McCullagh]
(http://news.com.com/2010-1071-946732.html?tag=3Dfd_lede)

SEE ALSO:

THE DARK SIDE OF HACKING BILL
[SOURCE: Wired News, AUTHOR: Michelle Delio]
(http://www.wired.com/news/politics/0,1283,54153,00.html)

MOVIE STUDIOS PRESS CONGRESS IN DIGITAL COPYRIGHT DISPUTE
The entertainment industry's campaign to raise Congressional support =
for
copyright enforcement is finally yielding results. In a flurry of =
activity,
several digital copyright protection bills are making the rounds. "The
debate about copy protection has clearly been joined in Washington," =
said
Alan Davidson, associate director of the Center for Digital Democracy =
(CDD).
CDD and other consumer advocacy groups worry that Congress and the FCC =
have
not fully examined the long-term and unintended consequences of the =
various
bills. The sudden attention to digital copyright protection has been =
fueled
largely by a conviction among lawmakers that broadband Internet and =
digital
television would be more widely adopted if consumers knew they could =
get
movies digitally. Others contend that the slow growth in broadband =
adoption
rates has little to do with unavailability of mainstream entertainment =
and
more to do with overstated expectations. Gigi Sohn, president of Public
Knowledge, suggested that the lack of copy protection was just a minor
reason why Hollywood has not as yet offered digital material. "It's
expensive," she said, "and they haven't figured out a business model." =
Sohn
suggests that legislators should insist on agreements from studios that =
they
would actually deliver product in return for additional laws. She noted =
that
the studios had already promised to do so in 1998 after the Digital
Millennium Copyright Act was passed, but so far there has been little =
to
show for that agreement.
[SOURCE: The New York Times, AUTHOR: Amy Harmon]
(http://www.nytimes.com/2002/07/29/technology/29DIGI.html)
(Registration required)

NEW BILL WOULD SAVE SMALL WEBCASTERS
A trio of federal lawmakers introduced a bill Friday that would =
eliminate
steep royalty payments for small Internet radio stations. Dubbed "The
Internet Radio Fairness Act," the bill would exempt from royalties any
business that makes less than $6 million in annual revenue. "Small Web =
radio
stations are bearing an unfair burden under the (copyright panel's)
decision, and the public stands to lose access to these useful services
unless the law is changed," said Rep. Jay Inslee (D-WA), one of the =
bill's
co-sponsors. The legislation "provides reprieve from bankruptcy for
thousands of small Internet radio companies...and corrects significant
problems with the royalty arbitration process that imposed a =
devastatingly
high cost on the nascent Internet radio industry," said Jonathan =
Potter,
executive director of the Digital Media Association, a group =
representing
Webcasters.
[SOURCE: CNET, AUTHOR: John Borland]
(http://news.com.com/2100-1023-946642.html?tag=3Dcd_mh)

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

Communications-Related Headlines for July 26, 2002

INTELLECTUAL PROPERTY
On trial: Digital copyright law
Music Bill Is Bully on IMs

INTERNET
Electronic Frontier Foundation Joins Wireless Crusade
Physicians' Net Usage Up

INTELLECTUAL PROPERTY

ON TRIAL: DIGITAL COPYRIGHT LAW
On Thursday, the American Civil Liberties Union filed a lawsuit on behalf of
a 22-year-old programmer. Thus far, the controversial Digital Millennium
Copyright Act (DMCA) of 1998 has been upheld by every judge. ACLU hopes that
this case will be different. The plaintiff, Ben Edelman, has been conducting
research in an effort to critique software used by public schools and
libraries. In the library-filtering lawsuit now before the Supreme Court,
Edelman reviewed software by Surfcontrol, N2H2, Websense and Secure
Computing, and concluded that filters are unable to do a consistent job of
blocking only pornographic Websites. The ACLU's lawsuit seeks permission for
Edelman to Decrypt N2H2's blacklist, publish the decrypted list and
distribute a decoding utility. Many experts doubt that, in the current
climate, the court will agree that the First Ammendment is more important
than the DMCA.
[SOURCE: CNET, AUTHOR: Declan McCullagh]
(http://news.com.com/2100-1023-946266.html?tag=fd_lede)

MUSIC BILL IS BULLY ON IMS
Representative Howard Berman (D-CA) introduced his peer-to-peer legislation
yesterday in the House of Representatives. The proposal would give copyright
owners the legal right to employ technological measures to stop peer-to-peer
trading. In essence, the bill allows copyright owners to immediately
'attack' individual computers, open-source programs and decentralized
networks. Recourse for mistaken identity actions would be difficult.
Individuals would have to petition the Attorney General who would then have
four months to investigate the matter. Rep. Berman's legislation also gives
carte blanche to chat applications such as AOL Instant Messenger, MSN
Messenger and Yahoo Messenger. Each of these have file-sharing options built
into their systems and, more importantly, ties with the entertainment
industry that protect them from anti-piracy action. AOL, for instance, is a
subsidiary of AOL Time Warner and Yahoo has a licensing agreement with the
recording industry. The Association of Competitive Technology said in a
letter to Rep. Berman that it will continue to support the bill as long as
it protects instant messaging products. Despite the entertainment industry's
cries against file-sharing applications, instant messenger programs may pose
a bigger threat to those genuinely concerned about stopping downloading. At
its height, the Napster network handled just under three billion files a
month, while AIM handles one billion files a day.
[SOURCE: Wired News, AUTHOR: Brad King]
(http://www.wired.com/news/mp3/0,1285,54124,00.html)

INTERNET

ELECTRONIC FRONTIER FOUNDATION JOINS WIRELESS CRUSADE
The Electronic Frontier Foundation (EFF) has posted a list of Internet
service providers (ISPs) that allow customers to share wireless Internet
access with their neighbors and passers-by through the use of low-cost
wireless hubs. These wireless "community networks" gives free Internet
access to households located near a wireless hub. According to EEF, this
practice "democratizes access to Internet services and helps to span the
digital divide by providing anyone within the physical vicinity access to
the Internet."
[SOURCE: Electronic Frontier Foundation]
(http://www.eff.org/Infra/Wireless_cellular_radio/20020725_eff_wireless_pr.h
tml)

PHYSICIANS' NET USAGE UP
A survey conducted by the American Medical Association (AMA) finds that
almost half of the responding physicians indicated that the Web has had a
major impact on the way they practice medicine. The study, based on
interviews with 977 physicians in the U.S. from August to December 2001,
revealed that more than three-quarters (78 percent) of physicians surf the
Web. The higher numbers of Web-surfing doctors is encouraging for the
millions of patients that would like to communicate online with their
physician. A recent Harris Interactive survey in the U.S. has shown that
large numbers of people would be likely to fix appointments, refill
prescriptions or ask simple questions of the doctors online and that many
people would pay to be able to do this.
[SOURCE: CyberAtlas, AUTHOR: Robyn Greenspan]
(http://cyberatlas.com/markets/healthcare/article/0,,10101_1430741,00.html)

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

Communications-Related Headlines for July 25, 2002

INTERNET
Deep Linking Takes Another Blow
Women Look to Shape the Future

MEDIA & SOCIETY
Italy's President Enters Fray Over Media Curbs
A 12-Step Program for Media Democracy

CABLE
Consumer Group Says Deregulation Of Cable Industry Hasn't Cut Rates

INTERNET

DEEP LINKING TAKES ANOTHER BLOW
Judges in Munich's Upper Court recently ruled that using a search engine to
locate stories on newspapers' sites is in violation of European Union law.
Although more legal hearings are in store, legal experts are concerned that
the ruling might be upheld, become legal precedent across the EU, and
drastically limit the information that many European search engines are
allowed to provide users. Previous deep linking cases centered on a specific
country's law, while in this case the defendant, NewsClub, is charged with
violating the EU's 1996 Database Directive. The directive was adopted to
protect electronic databases, but was expanded to include all "collections
of works, data or other independent materials arranged in a systematic way."
The directive allows a database owner to control or prohibit any sort of
temporary reproduction, including linking, of all or substantial amounts of
a database. Budapest-based attorney Attila Darvas said that "presumably one
or two links would most likely be OK, but accessing an entire database, as a
search engine probably would, could be a problem."
[SOURCE: Wired News, AUTHOR: Michelle Delio]
(http://www.wired.com/news/politics/0,1283,54083,00.html)

WOMEN LOOK TO SHAPE THE FUTURE
While the number of women who use computers is increasing, less and less are
studying computer science at university. Women, says author Emma Smith, seem
to be shying away from the very careers that would give them their best shot
at influencing the 21st century. Smith says that many women still believe
that high-tech careers involve the geeky, anti-social jobs that mean sitting
alone at a desk endlessly writing code. In fact, the author argues, "shaping
technology means thinking creatively, understanding people's needs and
inventing new ways of communicating and working together." Even when it was
nearly impossible for women to work in information technology, they stood
their ground so that the next generation of women have the chance to shape
technology. The biggest obstacle lies in making women understand technology
careers.
[SOURCE: BBC News, AUTHOR: Emma Smith]
(http://news.bbc.co.uk/1/hi/technology/2132168.stm)

MEDIA & SOCIETY

ITALY'S PRESIDENT ENTERS FRAY OVER MEDIA CURBS
Italian President Carlo Azeglio Ciampi has demanded a new law to guarantee
impartial news media coverage, a challenge to Prime Minister Silvio
Berlusconi. The issue of media content and control has hung ominously over
Italian politics since Mr. Berlusconi, who owns Italy's largest media
empire, won the general election last year. Opponents accuse his government
of seeking to mold the state broadcaster RAI in its own image. The
center-right government recently overhauled the board at RAI, and last month
the shows of two television personalities who were highly critical of Mr.
Berlusconi's were dropped. "There is no democracy without pluralism and
impartiality of news coverage," Mr. Ciampi wrote on Tuesday. "I am confident
that Parliament's actions will see this principle fully realized."
[SOURCE: New York Times, AUTHOR: Reuters]
(http://www.nytimes.com/2002/07/25/international/europe/25ITAL.html)
(requires registration)

A 12-STEP PROGRAM FOR MEDIA DEMOCRACY
[Commentary] Jeffery Chester and Gary O. Larson propose "a twelve-step plan
on behalf of a more democratic media system." Their plan includes efforts to
preserve and expand media venues for independent voices in the face of
increasing industry consolidation. They claim that the "reigning
laissez-faire spirit in Washington, spearheaded by FCC Chairman Michael
Powell, does not augur well for the preservation" of ownership safeguards
established to protect the public interest. Thus, they contend, advocacy
efforts are urgently needed to protect the public interest in the following
areas: concentration and control, content and culture; and access and
aiversity.
[SOURCE: Nation, AUTHOR: Jeffrey Chester and Gary O. Larson]
(http://www.thenation.com/doc.mhtml?i=special&s=olson20020722)

CABLE

CONSUMER GROUP SAYS DEREGULATION OF CABLE INDUSTRY HASN'T CUT RATES
According to Consumers Union, rates have risen 45 percent since the 1996
Telecommunications Act ordered the deregulation of the cable industry.
Industry officials dispute these numbers, saying that deregulation didn't
take effect until 1999. The National Cable & Telecommunications Association
says cable rates have increased only 17 percent since 1999. Regardless of
when one starts the deregulation clock, the numbers dwarf the rates of
inflation during that period. From December 1995 to June of 2002, the
inflation rate has never hit two digits. Consumers Union has called on
Congress to shift oversight of cable companies to local regulators, much
like telephone companies. The cable industry, meanwhile, denies that there
has been pricing abuse, saying that infrastructure, programming and other
costs have forced all providers to raise rates. Consumer Union rejects the
industry claims, citing revenues from other sources such as increases in
advertising, digital cable and broadband Internet service as more than
enough to cover costs.
[SOURCE: Wall Street Journal, AUTHOR: Associated Press]
(http://online.wsj.com/article/0,,SB102754428794293080,00.html?mod=technolog
y_main_whats_news)

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

Communications-Related Headlines for July 24, 2002

DIGITAL DIVIDE
African Schools Get a Tech Boost
FCC Launches Campaign to Connect All Americans to Basic Phone
Service

JOURNALISM
Press Club Defends Against Criticism

INTERNET
FCC Releases Data on High-Speed Services for Internet Access
ICANN Forefather Wants More Democratic Internet Governance

TELEPHONY
FCC Releases Data on Local Telephone Competition
Bush Admin. Unveils Wireless Plan

DIGITAL DIVIDE

AFRICAN SCHOOLS GET A TECH BOOST
SchoolNetAfrica (SNA) if the first African nonprofit organization to focus
on bringing educational technology resources to students in Africa.
Twenty-eight African countries participate in the program. The organization
is running a number of programs, like a Web design competition and an online
curriculum database, that it hopes will help build resources and leadership
skills. SNA is researching various models, such as the e-rate program in the
U.S., for funding access to computers and connectivity in African schools.
The organization is also facilitating relationships between
telecommunications companies and international partners. More information
about SchoolNetAfrica may be found at their website,
(http://www.schoolnetafrica.net/).
[SOURCE: Wired News, AUTHOR: Katie Dean]
(http://www.wired.com/news/school/0,1383,54045,00.html)

FCC LAUNCHES CAMPAIGN TO CONNECT ALL AMERICANS TO BASIC PHONE SERVICE
This week, the FCC's Consumer & Governmental Affairs Bureau kicked off "Get
Connected: Afford-A-Phone," a national public education campaign to increase
subscribership in phone service programs for low income consumers. The goal
of "Get Connected" is to inform income eligible consumers about the Lifeline
Assistance and Link-Up America programs, which provide discounts on initial
telephone installation and basic monthly telephone service to qualifying
low-income consumers. "Lifeline and Link-Up are designed to ensure that
everyone in this country has access to basic telephone service," said K.
Dane Snowden, Chief of the FCC's Consumer & Governmental Affairs Bureau,
"Phone service is not only a convenience, but a necessity. It is our link to
emergency services, the way we look for jobs and the way we stay in touch
with our families."
[SOURCE: FCC]
(http://www.fcc.gov/cgb/news/072202connected.html)

JOURNALISM

PRESS CLUB DEFENDS AGAINST CRITICISM
Despite protests from black and Hispanic journalists, the National Press
Club on Monday awarded the author of a controversial book about diversity in
the media. In Coloring the News, William McGowan argues that the search for
diversity has corrupted American journalism. Richard Prince, a Washington
Post editor and member of the National Association of Black Journalists,
said the book is full of ''half-truths, spin and inaccuracies and is not
worthy of an award from a journalistic organization.'' Press Club chairman
Jonathan Salant said the board reviewed its decision and chose to give
McGowan its press criticism award even though some members had serious
misgivings. The book, he said, ''prompted a self-examination and
reaffirmation by some news organizations historically committed to
diversity.''
[SOURCE: USAToday, AUTHOR: Peter Johnson]
(http://www.usatoday.com/usatonline/20020723/4297680s.htm)

INTERNET

FCC RELEASES DATA ON HIGH-SPEED SERVICES FOR INTERNET ACCESS
The FCC released summary statistics on the deployment of high-speed Internet
connections in the United States. The information, released yesterday, comes
from data as of December 31, 2001. High-speed lines to homes and businesses
increased by 33 percent during the second half of 2002, from 9.6 million to
12.8 million lines. Another interesting statistic indicated that, at the end
of 2001, high-speed service subscribers were present in all fifty states,
the District of Columbia, Puerto Rico, and the Virgin Islands. Broadband
service subscribers were in 79 percent of the nation's zip codes, compared
to 78 percent six months earlier and 73 percent at the end of 2000. For zip
codes ranked by median family income, the FCC reports high-speed subscribers
in 97 percent of the top one-tenth of zip codes and in 63 percent of the
bottom one-tenth of zip codes. The comparable figures from 2000 were 96 and
55 percent, respectively.
[SOURCE: Federal Communications Commission]
(http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-224580A1.doc)

ICANN FOREFATHER WANTS MORE DEMOCRATIC INTERNET GOVERNANCE
Ira Magaziner, one of the people responsible for creating the Internet
Corporation for Assigned Names and Numbers (ICANN), said the organization
must give ordinary Internet users more say in its decisions. In a rare
public appearance at a Cato Institute forum on Internet governance,
Magaziner said he would disapprove of an ICANN plan that abandoned
democratic involvement from individuals and non-governmental organizations.
"I know [democratic processes] make it a less tidy process, but you need
it," he said. ICANN is considering internal reform that includes abandoning
a structure that would have allowed ordinary Internet users to elect a
portion of the ICANN board.
[SOURCE: Washington Post, AUTHOR: David McGuire]
(http://www.washingtonpost.com/wp-dyn/articles/A51142-2002Jul23.html)

TELEPHONY

FCC RELEASES DATA ON LOCAL TELEPHONE COMPETITION
Yesterday, the Federal Communications Commission (FCC) released summary
statistics of its latest data on local telephone service competition in the
United States. The FCC's statistics indicate that customers obtain local
telephone service "over some 173 million incumbent local exchange carrier
(ILEC) switched access lines, almost 20 million competitive local exchange
carrier (CLEC) switched access lines and about 122 million mobile wireless
telephone service subscriptions." Generally, the statistics show an increase
in the number of lines operated by CLECs, who now account for about 10.2
percent of the more than 192 million total switched access lines in the
country. CLECs reported that about 22 percent of their switched access lines
came by reselling the services of other carriers, about 47 percent through
unbundled network element (UNE), and the remainder by local-loop facilities
owned by the CLECs. ILECs reported providing about 21 percent more UNE loops
to other carriers at the end of 2001 as they reported six months earlier.
[SOURCE: Federal Communications Commission]
http://www.fcc.gov/

BUSH ADMIN. UNVEILS WIRELESS PLAN
The Bush administration announced on Tuesday that the Pentagon has agreed to
shift some military communications to other frequencies, allowing space in
the airwaves for advanced mobile phones and other wireless gadgets. Under
the plan, the Pentagon would give up two sections of the spectrum by the end
of 2008. The wireless companies that buy the rights to the released
frequencies will pay for the Pentagon's transfer. Wireless companies have
been pushing for the release of a specific range of frequency that other
countries plan to use for advanced wireless features. By using the same
frequencies internationally, customers would be able to use a device
anywhere in the world.
[SOURCE: Wired News, AUTHOR: Associated Press]
{http://www.wired.com/news/politics/0,1283,54062,00.html)

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Communications-Related Headlines for July 23, 2002

INTELLECTUAL PROPERTY
Hollywood Heads Up Anti-Piracy Charge
Royalty Fees Killing Most Internet Radio Stations

INTERNET
How to Preserve Digital Art
Broadband Set for Global Boom

INTELLECTUAL PROPERTY

Royalty Fees Killing Most Internet Radio Stations

ROYALTY FEES KILLING MOST INTERNET RADIO STATIONS
More than 200 Internet-based radio stations have shut down because of a
royalty fee that takes effect in September, and most of the estimated 10,000
radio Webcasters are expected to follow suit. On June 20, a copyright
appeals board set a rate of seven-hundredths of a cent per song, per
listener. Payments, which are due Oct. 20 for this year and are retroactive
to 1998, could add up to tens of thousands of dollars. For many stations
that works out to thousands of dollars more than they make. The fee applies
to both commercial and non-commercial stations; many non-profits have closed
their Web stations, including University of California-Los Angeles and New
York University. While many Web stations already pay copyright royalties to
songwriter organizations, this new fee - which traditional over-the-air
radio stations don't pay - goes to record companies.
[SOURCE: USAToday, AUTHOR: Jefferson Graham]
(http://www.usatoday.com/tech/news/techpolicy/2002-07-21-radio_x.htm)

HOLLYWOOD HEADS UP ANTI-PIRACY CHARGE
On Monday, the Competitive Enterprise Institute and the Institute for Policy
Innovation sponsored an intellectual property conference. More than 100
congressional aides attended the conference which had a clear
pro-intellectual property agenda. Among the speakers were representatives of
Microsoft, Eli Lilly, and the Association for Competitive Technology. Intel
attorney Jeffrey Lawrence said that Senator Fritz Holling's (D-S.C.) bill to
require copy-protection technology in consumer devices has disrupted ongoing
negotiations between Hollywood and Silicon Valley. Rep. Howard Berman (D-CA)
introduced a bill last month that would allow content owners to use
aggressive high-tech measures to "prevent the unauthorized distribution of
their copyrighted works via P2P networks." The MPAA's proposals, on the
other hand, seek to limit piracy by outlawing future consumer devices that
receive digital TV broadcasts unless they follow anti-broadcasting
standards, such as embedded watermarks that limit redistribution ability.
With only about five weeks before Congress adjourns for the year, it is
unlikely that either side will see success until 2003.
[SOURCE: CNET News, AUTHOR: Declan McCullagh]
http://news.com.com/2100-1023-945691.html?tag=fd_top
see also:
LAWMAKERS SEEK RULES TO STOP REDISTRIBUTION OF DIGITAL TV
[SOURCE: New York Times, AUTHOR: Amy Harmon]
(http://www.nytimes.com/2002/07/23/technology/23DIGI.html)
(registration required)

INTERNET

HOW TO PRESERVE DIGITAL ART
"It took centuries to evolve a system of notation for musical scores," says
Richard Rinehart, director of digital media for the Berkeley Art Museum and
Pacific Film Archive. "With digital art, there's no room for things to fall
between the cracks. If you don't do something to preserve it within a span
of five years, it's not going to survive." Hence the launch of Archiving the
Avant Garde: Documenting and Preserving Variable Media Art. The project,
initiated by a consortium of art institutions, will propose a new set of
rules to document and preserve variable media art. The key, says Rinehart,
is to look at digital art and Internet art more as performance art rather
than as sculpture or painting. The project proposes four strategies for
preserving digital art: documentation, migration, emulation and re-creation.
Documentation of an art work and the artist's intent is the simplest and
most easily achieved goal. Not so with the other three strategies. Emulation
and migration can be costly and inaccurate. Many works will suffer greatly
from being transferred onto newer equipment. Most problematic is
re-creation, which requires artists to decide whether they want their works
to be completely translated into media that don't even exist yet.
{SOURCE: Wired News, AUTHOR: Kendra Mayfield]
(http://www.wired.com/news/culture/0,1284,53712,00.html)

BROADBAND SET FOR GLOBAL BOOM
Technology analysts at In-Stat have released a report saying that more than
46 million people across the world will have high-speed Internet access by
the end of 2002. If this prediction holds true, it will mean a jump of 16
million subscribers in a year. According to In-Stat, Asymmetric Digital
Subscriber Line (ASDL) is set to become dominant in the broadband market.
But the report points out that obstacles remain in the growth of broadband,
mainly that much of the world does not have the telecommunications
infrastructure to support broadband. In the U.S., cable modems are more
popular than DSL for high-speed access. Satellite or wireless access
comprise a scant 5 percent of the world market.
[SOURCE: BBC News]
(http://news.bbc.co.uk/1/hi/technology/2145402.stm)

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COMMUNICATIONS-RELATED HEADLINES for July 19, 2002

DIGITAL DIVIDE
President Shrugs At The Digital Divide

INFRASTRUCTURE
Bracing for the Storm
The Quest For A New Golden Age

TECH POLICY
Why e-Voting is a Bad Idea
The World According to Gates
EPIC: DRM Anti-Consumer, Threatens Privacy, Free Speech, Fair Use

DIGITAL DIVIDE

PRESIDENT SHRUGS AT THE DIGITAL DIVIDE
[Editorial] Following the February release of the Commerce Department's
report, ''A Nation Online,'' the Bush administration proposed cutting
federal efforts that help underserved communities get online. The 2003
budget called for the elimination of programs in the Education Department
and the Commerce Department that helped low-income communities use computers
and the Internet for education, adult literacy, and job training. The
Commerce Department's report concluded: ''With more than half of Americans
using computers and the Internet, we are truly a nation online." But Derrick
Jackson points to a Ford Foundation-funded report, released this month by
the Leadership Conference on Civil Rights and the Benton Foundation, that
reveals that Internet use by low-income people is still at very low levels.
Although the data is the same that was used in the Commerce Department's
report, the Bush administration says it is time to scale back investment,
which leads Jackson to question "how much of the nation the government truly
wants or needs to be ''online.'"
[SOURCE: New York Times, AUTHOR: Derrick Z. Jackson]
(http://www.boston.com/dailyglobe2/198/oped/President_shrugs_at_the_digital_
divide+.shtml)

INFRASTRUCTURE

BRACING FOR THE STORM
Many companies have emergency plans in place in case of natural disaster,
but now they are seriously considering contingency plans in the event that
service is disrupted because of financially strapped telecom providers. "We
talk about natural or financial disasters and don't necessarily distinguish
between the two," said eBay spokesman Kevin Pursglove. It isn't the only
company to equate telecom provider crises with capricious acts of nature.
With the recent collapse of giants such as WorldCom and Global Crossing,
companies around the world are moving to spread out important applications
and find plenty of backup providers. Executives in North America are closely
monitoring the situation in Europe where KPNQwest's bankruptcy is
threatening to disrupt one-quarter of the region's Internet protocol data.
In the U.S., FCC chairman Michael Powell added to the anxiety this week when
he stated that the industry was in a state of "utter crisis" and that he was
bracing for more bad news.
[SOURCE: CNET News, AUTHOR: Rachel Konrad]
(http://news.com.com/2100-1033-945047.html?tag=fd_lede)

THE QUEST FOR A NEW GOLDEN AGE
[Speech] In a keynote address at the Media Institute in Washington DC,
Assistant Secretary of Commerce for Communications and Information, Nancy
Victory, spoke of the importance of the transition to digital television and
radio. "Promoting advanced services and ensuring efficient spectrum
management," said Victory, "are among the highest priorities for the
Department of Commerce." Victory commended the leadership of House Energy
and Commerce Committee Chairman Billy Tauzin and FCC Chairman Michael
Powell, in working in tandem to move the transition along.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/new.html)

TECH POLICY

WHY E-VOTING IS A BAD IDEA
Robin Cook, Leader of the House of Commons in the United Kingdom, has
released a Green Paper outlining ways the Internet could be used to improve
political life. The government is looking for ways in which new
technologies, specifically the Internet, can make democracy "more real and
relevant in everyday life." Although few could fault the lofty goals of
enhancing political participation and electronic voting, the paper seems to
be written by well-meaning people who do not know very much about the real
world or people's daily lives. Ignored in the paper is the underlying truth
that people don't just want a new way to engage with an old and discredited
system - they want alternatives to the structures and systems that they have
lost faith in. Instead, the paper focuses, not convincingly, on the goal of
creating a secure and trustworthy network architecture for e-voting by the
year 2006.
[SOURCE: BBC News, AUTHOR: Bill Thompson]
(http://news.bbc.co.uk/hi/english/sci/tech/newsid_2135000/2135911.stm)

EPIC: DRM ANTI-CONSUMER, THREATENS PRIVACY, FREE SPEECH, FAIR USE
On July 17, the Electronic Privacy Information Center (EPIC) filed comments
with the Department of Commerce Technology Administration. At issue is the
matter of digital rights management (DRM) that is currently being advocated
by the entertainment industry. EPIC argues that the DRM technologies being
considered protect copyrighted materials do so at the expense of consumers'
rights to privacy, freedom of expression, fair use rights and the promotion
of science and the useful arts. Says EPIC in its comments, "Far from
creating positive conditions for commerce, DRM subsidizes inefficient
channels of content-delivery in the face of more efficient and more
equitable systems of distribution."
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)
See Also:
US TECH COMPANIES BACK EU APPROACH TO DIGITAL COPYRIGHT
[SOURCE: Computer Weekly]
(http://www.cw360.com/bin/bladerunner?REQUNIQ=1027090356&REQSESS=8xKGH361&RE
QHOST=site1&2131REQEVENT=&CARTI=114279&CCAT=2&CCHAN=28&CFLAV=1)

THE WORLD ACCORDING TO GATES
Microsoft Chairman Bill Gates has decided to start penning a newsletter on
the company's views of technology and public policy. The public policy
newsletter will not come out on a fixed schedule, but will publish whenever
Gates or his executives feels "a burning issue is afoot." The first volume
of the newsletter, penned by Gates himself, dealt with Microsoft's
Trustworthy Computing initiative. Gates gives an overview of the initiative
(made a top priority for the company after its Windows operating system was
found to be lacking in essential security features) and provides tips on how
companies can make their networks more secure.
[SOURCE: CNET News, AUTHOR: Michael Kanellos]
(http://news.com.com/2100-1001-945031.html?tag=fd_top)

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

Communications-Related Headlines for July 18, 2002

INTELLECTUAL PROPERTY
Cable Customers Get Digital Recording Option

DIGITAL DIVIDE
Not Just Closing a Divide, But Leaping It

CENSORSHIP
Why Countries Make Sites Unseen

COMPETITION
FCC's Policy Would Deliver Deathblow to Local Phone Competition
FTC Seeks Greater Authority Over Telecom Sector

INTELLECTUAL PROPERTY

CABLE CUSTOMERS GET DIGITAL RECORDING OPTION
In a decision that seems at odds with positions in other parts of the
empire, AOL Time Warner announced that it will offer new cable set-top boxes
that will allow customers to pause and digitally record television programs.
Just last week, Jamie Kellner, chairman of AOL Time Warner owned Turner
Broadcasting System, warned that television viewers could expect to start
paying for channels if personal video recorders (PVRs) have significant
negative impact on advertising revenue. Time Warner Cable, who will offer
the boxes in an attempt to compete with satellite TV, say that their devices
will not allow the controversial ad zapping feature that has frightened so
many in the entertainment industry.
[SOURCE: USA Today]
(http://www.usatoday.com/tech/news/techinnovations/2002-07-18-cable-recorder
s_x.htm)

DIGITAL DIVIDE

NOT JUST CLOSING A DIVIDE, BUT LEAPING IT
For four days in July, more than 100 young people from the United States and
abroad came to Boston to share and further their computer accomplishments.
Started in Boston in 1993, the Intel Computer Clubhouse program has grown
into an international network of 50 Computer Clubhouses. The Clubhouses are
designed to provide a place for young people in low-income areas to really
explore and develop their interests. The Computer Clubhouse program is
exactly what is needed, according to many educators. As the Bush
administration uses data on increasing computer access to cut federal
efforts to close the digital divide, many educators and technology experts
say that the challenge is far more complex than just providing access. What
young people need is more programs, like the Computer Clubhouse, to develop
fluency with advanced computer hardware and software.
[SOURCE: The New York Times, AUTHOR: Michel Marriott]
(http://www.nytimes.com/2002/07/18/technology/circuits/18CLUB.html)

CENSORSHIP

WHY COUNTRIES MAKE SITES UNSEEN
With the full cooperation of the Saudi Arabian Internet Services Unit, which
is responsible for routing and filtering all international Internet traffic
in the country, Harvard law professor Jonathan Zittrain and researcher
Benjamin Edelman tried to access nearly 60,000 Web pages through Saudi
servers. They discovered about 2,000 sites to be blocked by the Saudi
government, one of dozens of governments around the world trying to control
content their citizens see online. A new Harvard Law School study examines
the pattern of censorship of governments around the world. "You can get a
sense of what worries a regime by what sites they block," said Carin
Karlekar, a senior researcher at Freedom House, a pro-democracy group. "In
Saudi Arabia, the government's more interested in clamping down on personal
freedom than on political freedom. But in China, they're more concerned
about political subversion than personal morality, so news sites are the
ones that are censored."
[SOURCE: Wired, AUTHOR: Noah Shachtman]
(http://www.wired.com/news/politics/0,1283,53933,00.html)

COMPETITION

FTC SEEKS GREATER AUTHORITY OVER TELECOM SECTOR
At a Senate Commerce subcommittee hearing on Wednesday all five Federal
Trade Commissioners pressed Congress for authority to regulate the nation's
largest telecommunications providers in an effort to shield consumers
against aggressive telemarketers and questionable billing practices. Draft
legislation that would grant much of the FTC's request focuses on funding
for new consumer protection measures, and does not seek to involve the
commission in telecommunications merger and competition proceedings, which
are currently decided by the FCC in consultation with the U.S. Justice
Department. But Mozelle Thompson, one of two Democratic commissioners on the
FTC, said he hopes the commission can use the added authority to weigh in on
competition proceedings within the telecom sector. Consumer groups support
the FTC move, arguing that the agency responsible for policing the industry
- the FCC - has failed to crack down on carriers accused of billing
consumers for unauthorized services and "slamming," the illegal practice of
changing a consumer's telephone service without permission.
[SOURCE: Washington Post, AUTHOR: Brian Krebs]
(http://www.washingtonpost.com/wp-dyn/articles/A14569-2002Jul16.html)

FCC's POLICY WOULD DELIVER DEATHBLOW TO LOCAL PHONE COMPETITION
Yesterday, consumer groups filed reply comments with the FCC charging the
Commission to "affirm its current list of unbundled network elements to
foster competition and avoid further disrupting the already precarious
competitive phone carrier market." The FCC proposes rewriting regulations
that currently require incumbent phone companies to open their local phone
networks to competition. "The Federal Communications Commission and its
Chairman, Michael Powell, must bear significant responsibility for the
current telecom crisis," said Dr. Mark Cooper, Director of Research,
Consumer Federation of America. "Less than a month after Powell took over as
Chairman, he tilted the scales in favor of large monopoly incumbents by
declaring his preference for deregulation before competition, a policy he
continues with this rulemaking." The consumer groups fear that by
eliminating competition, the FCC will doom customers to be captives of
monopolies with the power to raise prices, limit service and ignore customer
service.
[SOURCE: Consumer Federation of America]
(http://www.consumerfed.org/backpage/071702_UNEReplyReleasefinal.html)

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

Communications-Related Headlines for July 17, 2002

INTERNET
Senate Continues Funding For Federal Technology Programs
Net Radio Appeals on Royalties
Hispanics' Use Of Web Surges

BROADCAST
Small TV Stations Reel Under Order to go Digital

SOFTWARE
Wal-Mart Computers Without Windows

INTERNET

SENATE CONTINUES FUNDING FOR FEDERAL TECHNOLOGY PROGRAMS
Tuesday, two Senate appropriations subcommittees decided to fund the two
important community technology programs - the Technology Opportunities
Program and the Community Technology Centers program - at levels comparable
to last year's amounts, despite the Bush Administration's recommendation to
eliminate these programs in their FY03 budget. Under the leadership of
Senators Tom Harkin (D-IA) and Arlen Specter (R-PA), the Senate Labor,
Health and Human Services and Education Appropriations Subcommittee, voted
to continue funding the CTC program at $32.5. The Senate Commerce, Justice,
State and the Judiciary Appropriations Subcommittee, under the leadership of
Ernest Hollings (D-SC) and Judd Gregg (R-NH), voted to continue funding the
Technology Opportunity Program at last year's level.
[SOURCE: Digital Empowerment Campaign]
(http://www.civilrights.org/library/detail.cfm?id=9563)

NET RADIO APPEALS ON ROYALTIES
A group of broadcast radio stations have asked a federal appeals court to
rule for parity between broadcast and Internet royalty fees. The recent
decision by the U.S. Copyright Office mandates that radio stations pay
musicians and recording companies when music is "streamed" over the
Internet. Over-the-air broadcasts, however, are not subject to the same
fees. Historically, radio stations have only had to pay a per-song royalty
to songwriters but not to performers or anyone else with rights to the
performance of a song. The appealing group says that the new ruling is a
misinterpretation of Congressional intent. The broadcasters say that
Congress intended the law to apply only to services that would enable users
to download songs, not online radio broadcasts that do not allow users to
save songs. Webcasters did not participate in the appeal, nor was there any
immediate response from the Recording Industry Association of America.
[SOURCE: Wired News, AUTHOR: Reuters]
(http://www.wired.com/news/politics/0,1283,53896,00.html)

HISPANICS' USE OF WEB SURGES
According to Nielsen/NetRaitings, Hispanics' use of the World Wide Web at
home is growing faster than that of any other ethnic group in the United
States. The online Hispanic population grew 13 percent, compared with an
overall Web population growth of 3 percent, Nielsen/NetRatings found. The
online growth of the Hispanic population is "a great opportunity for
marketers and businesses," said Carolyn Clark, a media analyst at
Nielsen/NetRatings, based in New York.
[SOURCE: New York Times, AUTHOR: Allison Fass]
(http://www.nytimes.com/2002/07/17/technology/17TBRF2.html)
(requires registration)

BROADCAST

SMALL TV STATIONS REEL UNDER ORDER TO GO DIGITAL
It seemed like a good idea in 1997. That's when the federal government
ordered a national conversion from analog to digital television by 2006.
They wanted to spur the development of high-definition TV (HDTV); they
wanted to free-up spectrum. Most of all, it seems, they wanted to raise
billions of dollars by selling the unused spectrum to wireless companies.
The transition has been anything but smooth, however. Consumers have shown
little interest in expensive digital TV sets, cable companies resisted
carrying both analog and digital signals during the transition phase and the
cost for an analog station to convert to digital is astronomical. "These
guys have really got a problem," says Sanford C. Bernstein's Tom Wolzien.
"It can cost $3 million to convert to digital. But a smaller TV station is
lucky if it makes $300,000 a year in free cash flow." Now, smaller stations
especially, are wondering if they will be able to make the change at all in
the midst of a recession. Last November, the FCC offered some relief,
allowing stations to file for extensions on the basis of financial hardship.
The FCC also cut the requirement that digital signals must reach everyone in
a station's current broadcast territory. While this allows stations to spend
far less money in equipment, it also threatens to leave many remote
customers without any television signal.
[SOURCE: USA Today, AUTHOR: David Lieberman]
(http://www.usatoday.com/life/cyber/tech/2002/07/17/digital-tv.htm)

SOFTWARE

WAL-MART COMPUTERS WITHOUT WINDOWS
Wal-Mart's online shopping site is now selling inexpensive computers without
the Microsoft Windows operating system. Saying that it wants to offer
customers more options, Wal-Mart is offering the computers with LindowsOS,
based on the open-source Linux operating system. Wal-Mart says it began
marketing the computers in response to customer requests for Linux systems.
"We're simply offering this to a specific niche looking for this specific
operating system," said spokeswoman Cynthia Lin. Last December, Microsoft
sued San Diego-based Lindows on the grounds that the product is too similar
to Microsoft's own Windows system. This March a federal court ruled that it
would not block the small startup's software from using the name Lindows. A
Microsoft spokesman indicated that the software giant intends to pursue its
claim in order to protect its trademark.
[SOURCE: The Washington Post, AUTHOR: Caryn Rousseau, Associated Press]
(http://www.washingtonpost.com/wp-dyn/articles/A14676-2002Jul16.html)

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