Communications-related Headlines for 1/11/99

COMMUNITY NETWORKING
Web Towns Scale Back Urban Sprawl (ChiTrib)

DTV
HDTV Set Prices Are Falling, but Buyers Remain Scarce (NYT)

COMPETITION
AT&T Widens Local-Service Phone Plans (WSJ)
FCC TO AT&T: Unveil phone plans (B&C)
The Titans of Wireless Are Tearing Down Regional Fences (NYT)

ELECTRONIC COMMERCE
Digital Timestamps: Punching an Electronic Clock (CyberTimes)
Returning Online Buys Not So Easy (WP)

LOBBYING
Technology Industry Group Lists '99 Policy Priorities (SJ Merc)

ANTITRUST
Microsoft Pricing Data to Be Disclosed (WSJ)

WEB TOWNS SCALE BACK URBAN SPRAWL
Issue: Community Networking
A look at the state of community computer networks in the Chicago area. Many
sites sprang up in the early-90's, but have failed after an early burst of
enthusiasm. Surviving sites have become smarter about what they can offer.
"Technology, ultimately, has to be built from the
bottom up. The best way to be of service is to deal with folks where they
are, to start with modest goals and build up," says Larry McClellan,
executive director of LincolnNet (www.LincolnNet.net). Story contains a
brief history of Web communities
http://chicagotribune.com/business/businessnews/article/0,1051,ART-21437,00
.html and a look at the Top 10 reasons why "Web towns" fail"
http://chicagotribune.com/business/businessnews/article/0,1051,ART-21436,00
.html
[SOURCE: Chicago Tribune (Sec3, p.1), AUTHOR: Michele Fitzpatrick]
http://chicagotribune.com/business/businessnews/article/0,1051,ART-21435,00
.html

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DTV
===

HDTV SET PRICES ARE FALLING, BUT BUYERS REMAIN SCARCE
Issue: DTV
Only a few months after its introduction on to the market, a high-definition
television set can be now purchased for a mere $2,999 - less than half of
the introductory price. Even with the rapidly dropping cost, HDTV sets are
still much more expensive that the average consumer is willing to spend for
a TV. Most people are likely to wait until the price tags are less than half
of what they are now, which leads the industry to fear that, in the
meantime, consumers will hold off purchasing any TVs -- either analog or
digital. So far, with television set sales up 6% this past year, the
industry's concern about a disastrously unprofitable transition to digital
appear to be unfounded.
[SOURCE: New York Times (C14), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/99/01/biztech/articles/11hdtv.html

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COMPETITION
===========

AT&T WIDENS LOCAL-SERVICE PHONE PLANS
Issue: Telephone
AT&T said it is stepping up plans to provide local telephone service to
millions of consumers nationwide through the cable lines it is acquiring as
part of its purchase of cable giant Tele-Communications Inc. AT&T said it
will spend $2 billion more than originally anticipated to accelerate plans
to upgrade TCI's cable lines so they can provide local, Internet and
advanced-video service by the end of the year in 10 markets. In a massive
filing with the Securities and Exchange Commission, AT&T said it made a
last-minute change against issuing a separate tracking stock for some of its
consumer businesses. AT&T's board also authorized a 3-for-2 stock split, its
first since 1964, and a $4 billion repurchase of AT&T's stock. AT&T
executives also told analysts at a meeting in New York that the company is
moving to offer customers all of its services - from long distance and local
calling to cable movies - in one-price bundles for a set amount each month.
People close to the company said it has begun to test such a program in
Freson, CA. Also AT&T said to analysts it will step up efforts nationwide to
reward consumers who subscribe to its services. The awards may include free
movies or wireless telephones.
[SOURCE: Wall Street Journal (A3), AUTHOR: Rebecca Blumenstein]
http://www.wsj.com/

FCC TO AT&T: UNVEIL PHONE PLANS
Issue: Mergers
At a press briefing on his 1999 agenda, FCC Chairman William Kennard said
that the agency plans to review broadcast ownership rules and make a
decision on the AT&T/TCI merger early this year. Chairman Kennard urged AT&T
to unveil its plans to provide local phone service over TCI's cable lines.
He expressed a strong desire to see more competition in local markets. The
FCC chairman also said that Congress should allow satellite providers to
offer signals from local network affiliates, which would bolster their
ability to compete with cable operators. This type of competition, according
to Chairman Kennard, would push down cable rates.
[SOURCE: Broadcasting and Cable (p14), AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/

THE TITANS OF WIRELESS ARE TEARING DOWN REGIONAL FENCES
Issue: Wireless
The announcement of AT&T's new 'Digital One Rate' plan - which essentially
gets rid of both long distance rates for wireless customers and "roaming"
fees associated with traveling outside of the company's network area --
represented an important change for the cellular industry. Consumers are
eager for lower rates and broader coverage areas and the once thriving
regional carriers are finding it increasingly difficult to compete with
large national carriers that can afford to offer such cost saving plans.
For the past few years, the wireless business has been one place in the
telecommunications industry where scale is not necessary for survival.
Recently, however, more and more of the market share is going toward
national services, forcing many small and local carriers to partner in hopes
of survival.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
http://www.nytimes.com/yr/mo/day/news/financial/wireless-pricing.html

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ELECTRONIC COMMERCE
===================

DIGITAL TIMESTAMPS: PUNCHING AN ELECTRONIC CLOCK
Issue: Electronic Commerce
A number of firms are trying to develop "digital timestamps" that would act
like a notarized signature, establishing a document's existence or state at
a particular time. As electronic commerce becomes more popular, timestamps
could be used for fraud protection, preventing people, for example, from
backdating transactions. Digital timestamps are actually more accurate than
paper timestamps because not one character in the document can be changed --
in paper copies, pages can be added at a later time. For more info see
Surety Technologies http://www.surety.com/, DigiStamp's e-TimeStamp
http://www.e-timestamp.com/, Stamper http://www.itconsult.co.uk/stamper.htm.
[SOURCE: CyberTimes, AUTHOR: Peter Wayner pwayner( at )nytimes.com] 1/10/99
http://www.nytimes.com/library/tech/99/01/cyber/articles/10notary.html

RETURNING ONLINE BUYS NOT SO EASY
Issue: Electronic Commerce
When it comes to returning goods to many online merchants, you still need to
phone in, wait for a representative who can give you a return authorization
number, pack up the items and schlep to the post office. An estimated $3
billion was spent online during the Christmas holidays, nearly tripling from
a year ago. But now that Christmas is through, consumers are seeing that the
high-tech online world has some low-tech glitches - with returns topping the
list. Not all online merchants handle exchanges; some consumers are
discovering they must get a refund before they can purchase something else.
Some merchants, like Shopping.com, will only accept the item if it is
shipped in the packaging it came in, which means holding on to boxes and
wrapping. Many others, including Victoria's Secret and Wal-Mart, won't let
shoppers return most goods to their brick-and-mortar stores. After hearing
consumers' complaints, some online retailers are already taking action.
Amazon.com, for instance, has extended its holiday returns deadline until
January 31, instead of its usual policy of 30 days after purchase date.
Many others are agreeing to pay shipping for returns if a customer complains
about the charges. One new Internet mall, Buyitonline.com, is going so far
as to offer a no-hassle return policy.
[SOURCE: Washington Post (Online), AUTHOR: Rachel Beck (Associated Press)]
http://www.washingtonpost.com/wp-srv/WAPO/19990110/V000092-011099-idx.html

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LOBBYING
========

TECHNOLOGY INDUSTRY GROUP LISTS '99 POLICY PRIORITIES
Issue: Lobbying
An interview with David B. Wright and Carl Guardino of the Silicon Valley
Manufacturing Group, a public policy trade association that represents 130
of Silicon Valley's largest companies. Some of their priorities for 1999 may
surprise you: Said Mr. Wright, " The top priority will be education. Number
two will be the whole area of cost of living and how to make it attractive
for people to want to live here, stay here or come here, rather than go from
here. This includes the issues of housing and transportation." On education
he continued, "We're in the information age. Literacy's a very big key
issue. Can I read? Can I write? Can I communicate? We should focus on issues
like: Can we attract teachers in this area? Can we enhance the skill-sets of
our teachers? Can we improve the media that we use to help educate our
kids?" Mr. Guardino says the group will focus on "teacher training, teacher
housing and teacher compensation."
[SOURCE: San Jose Mercury News]
http://www.mercurycenter.com/business/top/073784.htm

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ANTITRUST
=========

MICROSOFT PRICING DATA TO BE DISCLOSED
Issue: Antitrust
Confidential pricing data are expected to be disclosed today in the
Microsoft Corp. antitrust trial in a closed court session. Microsoft and
several PC makers have asked that the data remain under court seal, although
several news organizations filed last week to open the proceeding to the
public. U.S. District Judge Thomas Penfield Jackson is to rule today on the
news organizations' request. The government is expected to detail how
Microsoft used Windows software prices to punish some personal computer
makers while rewarding allies. Microsoft fought hard to prevent the
government from getting access to the prices. The data could also help
shape any court-imposed remedy if Microsoft is found to have violated
antitrust law. The data is expected to show that Dell and Compaq got better
pricing from Microsoft while Gateway and IBM, which were not as friendly
toward Microsoft, paid more for Windows. The Government will also try to use
the data to show that Window's price has risen significantly, a fact that
will be disputed by Microsoft's first witness in the case, a MIT professor
who is scheduled to take the stand later this week. A Microsoft spokesman
says the Government's data is "flat wrong and deliberately misleading."
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke]
http://www.wsj.com/

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Happy Monday!