DIGITAL DIVIDE
Clinton Touts Internet as Third World Savior
INTERNET
Internet Makes an Easy Target for Lobbyists and Lawmakers (NYT)
Self-Indulgence in the Internet Industry (NYT)
Senate Passes Electronic Commerce Bill (SJM)
Prodigy, SBC Agree to Combine Their Internet-Service Businesses
(WSJ)
BROADCASTING
Despite Agreement, Snags Remain for Digital TV (NYT)
For BET, Some Static in the Picture (WP)
FCC Issues Guiding Principles For Spectrum Management (FCC)
PUBLIC INTEREST
Media Moguls Seen Taking Turn To Social Responsibility (USA)
ANTITRUST
Microsoft Faces A Class Action On 'Monopoly' (NYT)
EMPLOYMENT
At Amazon.com, Service Workers Without a Smile (WP)
DIGITAL DIVIDE
CLINTON TOUTS INTERNET AS THIRD WORLD SAVIOR
Issue: Digital Divide/International
FLORENCE, Italy -President Clinton proposed Sunday an increase in the
developing world's access to computers, cellular telephones and the World
Wide Web to help struggling economies. The president made the announcement
at a daylong international conference on the challenges of "progressive
governance" in the next century. Commonly referred to as "third way," the
leaders were seeking ideas that were outside of traditional
conservative/liberal models. Clinton said: "I think we should shoot for a
goal in the developing countries (and) the developed countries, of having
Internet access as complete as telephone access within a fixed number of
years. It will do as much as anything to reduce income inequality." Clinton
returned to the idea throughout the day: "The more you can make dense the
availability of cell phones and computers in poor countries, the bigger
difference it would make." He did not offer specifics. Among the
participants, summoned by the conference host, Prime Minister Massimo
D'Alema of Italy, were Prime Minister Tony Blair of Britain, Chancellor
Gerhard Schroeder of Germany, Prime Minister Lionel Jospin of France and
President Fernando Henrique Cardoso of Brazil.
[SOURCE: San Jose Mercury, AUTHOR: James Gerstenzang - Los Angeles Times]
(http://www.sjmercury.com/svtech/news/breaking/merc/docs/004797.htm)
INTERNET
INTERNET MAKES AN EASY TARGET FOR LOBBYISTS AND LAWMAKERS
Issue: Legislation/Internet
Where it comes to Internet bills in front of Congress, Margot Saunders,
managing attorney for the National Consumer Law Center, believes it is a
matter of "everybody being scared to death to vote against the high-tech
industry." It seems as if laws to protect business interests like
intellectual property and digital contracts have been on the fast track,
while proposals for basic consumer protections have not attracted much
support. "I characterize it as short-term-advantage thinking with long-term
implications," said Jerry Berman of the Center for Democracy and
Technology. Berman says that the trend has moved away from true
self-regulation to "leave it alone -- except for this, except for
that." America Online, for example, has been very vocal in calling for a
hands-off approach to the Internet, but is now pushing legislation that
would force cable companies to open their high-speed Internet lines to
competition.
[SOURCE: New York Times (C1), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/11/biztech/articles/22regs.html)
SELF-INDULGENCE IN THE INTERNET INDUSTRY
Issue: Internet
[Commentary] These days it seems as if the Internet companies are more
willing to risk consumer anger than to voluntarily adopt a meaningful code
of conduct or to disclose too much about their business practices. Even as
the lack of credibility among Web companies attracts increasing attention
and criticism, many sites still feel no need to distinguish between what
information is paid for and what is not. "There is an ideal confusion in
the mind of the consumer today," said an anonymous chief executive of one
Internet company. "It's good if the consumer doesn't know whether he's
buying the watch from Casio's site or from us." According to Caruso, many
companies seems to be "banking on the 'ride this horse till it drops'
strategy" when it comes to Internet credibility. "And considering the
amount of activity that their bad behavior is generating, they may not have
long to wait."
[SOURCE: New York Times (C5), AUTHOR: Denise Caruso]
(http://www.nytimes.com/library/tech/99/11/biztech/articles/22digi.html)
SENATE PASSES ELECTRONIC COMMERCE BILL
Issue: E-Commerce
Friday, the U.S. Senate passed the Millennium Digital Commerce bill to set
standards for electronic signatures and protect consumers who buy things
online. The bill will ensure that contracts will not be denied legal effect
that they otherwise would have under state law solely because they are in
electronic form or because they were signed electronically. It also seeks
to protect consumers against companies that try to confuse them with
electronic disclosures or compel them into waiving their rights to paper
records. Senator Patrick Leahy (D-VT), who sponsored the bill in the Senate
along with Michigan Republican Senator Spencer Abraham (R -MI), said the
bill was intended as an interim measure until states pass their own
electronic commerce laws. This version is different from one passed by the
House of Representatives, so the two must be reconciled in a conference
committee and then approved again by both chambers.
[SOURCE: San Jose Mercury, AUTHOR: Reuters]
(http://www.sjmercury.com/svtech/news/breaking/internet/docs/1108718l.htm)
PRODIGY, SBC AGREE TO COMBINE THEIR INTERNET-SERVICE BUSINESSES
Issue: Merger
Today, SBC Communications and Prodigy Communications announced they have
agreed to join their consumer and small-business Internet operations. SBC
will make Prodigy its exclusive retail consumer and small-business Internet
access service to the roughly 100 million Americans in SBC's service area.
Prodigy will manage SBC's current 650,000 dial-up, ISDN and basic DSL
Internet customer base, increasing Prodigy's subscriber base to more than
two million. SBC will exclusively market Prodigy service with the
commitment of delivering a minimum of 1.2 million new customers over the
next three years to the Prodigy member base. Prodigy will own 57% of the
partnership and SBC will have the right to convert its 43% interest into a
direct equity interest in Prodigy. All new subscribers will become Prodigy
members and Prodigy will use SBC as its preferred provider of
telecommunications services and network infrastructure.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB943267877646005274.htm)
BROADCASTING
DESPITE AGREEMENT, SNAGS REMAIN FOR DIGITAL TV
Issue: DTV
The cable television and consumer electronics industries announced last
week that an agreement had been reached over what sort of connections
should be used for set makers to begin building cable-compatible digital
televisions. William Kennard, the Federal Communications Commission
chairman, had urged the industries to resolve the cable compatibility
problem by November of 1998. While they had figured out what kind of plug
they wanted to use by the appointed date, they still had not agreed on a
method for keeping viewers from making digital copies of programs that the
programmers did not want copied. Now that an agreement has been made,
TV-set makers are not yet ready to commit themselves to making all digital
television sets ready for cable in the form the cable industry would like.
"We don't want to broaden the digital divide by forcing Americans to pay
more for every DTV set to get features they may not want or use," said.
Gary Shapiro, head of the Consumer Electronics Association.
[SOURCE: New York Times (C17), AUTHOR: Joel Brinkley]
(http://www.nytimes.com/library/tech/99/11/biztech/articles/22plug.html)
FOR BET, SOME STATIC IN THE PICTURE
Issue: Television/Minorities
At a time when the NAACP has been charging the major networks for
inadequate minority representation, some African Americans are expressing
growing disenchantment with the one network aimed at blacks --BET. Many
feel that BET's schedule does not offer audiences uplift or enlightenment,
but instead depends on the very stereotypes blacks have complained about on
other networks. Labor unions have also complained that BET founder and
President Bob Johnson exploits both his performers and his employees.
"There's a group of disaffected black people out there who feel BET has to
be everything they want it to be," says Johnson of his critics. "They're
frustrated that BET won't program to their personal desires. They're
personally frustrated BET isn't in their own image. They just don't
understand."
[SOURCE: Washington Post (C1), AUTHOR: Paul Farhi]
(http://washingtonpost.com/wp-dyn/articles/A30988-1999Nov21.html)
FCC ISSUES GUIDING PRINCIPLES FOR SPECTRUM MANAGEMENT
Issue: Spectrum
Last Thursday, the Federal Communications Commission issued a Policy
Statement outlining principles for spectrum management designed to enhance
competition and to encourage the development of new telecommunications
technologies. The Policy Statement will serve as a guide for the
reallocation of approximately 200 megahertz of spectrum for a broad range
of new radio communications services. The demand for spectrum has increased
as a result of explosive growth in wireless communications. The
Commission's approach to managing spectrum includes the following
principles: 1) Allowing flexibility in allocations to allow licensees to
better respond to market demand; 2) Promoting new spectrum efficient
technologies, such as those that support ultra-wideband and spread spectrum
operations; 3) Ensuring that important communications needs, such as public
safety, are met; 4) Improving the efficiency of the FCC spectrum assignment
processes through streamlining and innovative techniques; 5) Encouraging
the development of secondary markets for spectrum to ensure full
utilization; and 6) Continuing to seek ways to make more spectrum available
through things such as user fees or reclaiming existing spectrum. (See the
Policy Statement for the spectrum that is currently available.) FCC
Chairman William Kennard also announced the creation of a Spectrum Policy
Executive Committee where the Bureau and Office Chiefs involved will
participate on the Committee under the direction of Dale Hatfield, Chief of
the Office of Engineering and Technology. [SOURCE: Federal Communications
Commission]
(http://www.fcc.gov/Bureaus/Engineering_Technology/News_Releases/1999/nret90
07.html)
PUBLIC INTEREST
MEDIA MOGULS SEEN TAKING TURN TO SOCIAL RESPONSIBILITY
Issue: Media Ownership/ Public Interest
[Commentary] Lieberman, who notes that there seems to be an unusual amount
of soul searching in the media business lately, considers several recent
developments. Time Warner (previously a major political contributor) became
a strong advocate of campaign finance reform last week, saying it will stop
making "soft-money" contributions to parties or advocacy groups, who, in
turn, buy ads for certain candidates. Additionally, the company will add $1
million to the budget for its newsmagazines and cable channels to cover
serious issues in next year's election. Times Mirror, owner of the Los
Angeles Times, was forced to reconsider its efforts to improve business at
the newspaper at the expense of its reputation for editorial independence.
Publisher Kathryn Downing acknowledged that she went too far when she
agreed to share $2 million in ad revenue with the Staples Center from an
issue of the Sunday magazine devoted to the arena. Media watchdog Brill's
Content which in its February issue explained "why CBS News and CNN should
merge" is now arguing that in the wake of Viacom's deal to buy CBS, "having
a few huge corporations control our outlets of expression could lead to
less aggressive news coverage and a more muted marketplace of ideas." And
finally, at a panel marking the results of a study raising concerns
about media influence on children, WB Network CEO Jamie Kellner, didn't
defend his free speech rights nor did he urge those who object to a show to
change the channel. Instead, he said he has rejected proposals for shows
that he deemed antisocial and cultivated pro-social programming.
[SOURCE: USA Today (3B), AUTHOR: David Lieberman]
(http://www.usatoday.com/news/comment/colmedia.htm)
ANTITRUST
MICROSOFT FACES A CLASS ACTION ON 'MONOPOLY'
Issue: Anti-trust
Lawyers say they are preparing to file a class-action suit against
Microsoft on behalf of millions of California residents who bought
Microsoft Windows. The suit will accuse Microsoft of using its monopoly in
operating systems software to overcharge buyers of Windows 95 and Windows
98. The complaint does not estimate the financial impact to Windows users,
but the three lawyers bringing the case are seeking triple damages if the
suit leads to an eventual finding of financial harm. Earlier this month
Judge Thomas Penfield Jackson issued his findings of fact in the
government's antitrust case against Microsoft, concluding that Microsoft is
a monopoly whose anti-competitive acts have stifled innovation and harmed
consumers. A judge's findings of fact in a federal antitrust case are not
generally considered admissible as evidence in private suits. But Jackson's
findings agreed so strongly with the case presented by the Justice
Department and 19 states that antitrust experts say his final verdict is
expected to find that Microsoft is a monopoly that violated the law. An
estimated 90 percent of Windows 98 users received the software preloaded on
new machines. Legally, this is significant because a 1977 Supreme Court
ruling -- the Illinois Brick Company vs. the State of Illinois -- declared
that indirect purchasers of goods could not recover damages in class-action
antitrust cases. Since 1977, however, 18 states including California and
New York have passed laws allowing indirect purchasers to qualify for
triple damages in antitrust class actions.
[SOURCE: New York Times (A1), AUTHOR: Steve Lohr]
(http://www.nytimes.com/library/tech/99/11/biztech/articles/22soft.html)
EMPLOYMENT
AT AMAZON.COM, SERVICE WORKERS WITHOUT A SMILE
Issue: Employment
While Amazon.com has been hailed in trade publications for its generally
quick attention to customer needs, Amazon.com employees paint a picture of
a disaffected workplace. Amazon's customer service centers are home to
time-worn industrial tensions between gung-ho managers and disaffected
employees; speedy machines and mortal paces; union and anti-union
interests. Additional animosities exist between stock-option millionaires
and low-wage co-workers. In the new economy workplace the promise of speed
still rests heavily with rote-work employees -- the men and women who spend
their days and nights boxing books at Amazon's distribution centers, and
those who answer e-mail. While technology has helped eliminate the tedium
in many fields, most of the jobs created by the new economy are low paying,
low skilled and monotonous. Customer service workers are typically in their
twenties, unmarried and unmortgaged. An unknown proportion have been at the
company long enough to receive significant equity compensation to
supplement their wages, nearly all of which are $10 to $13 a hour. Customer
service representatives are expected to maintain a high rate of
productivity, and output is watched closely, several employees said.
Supervisors push "productivity" and "efficiency" in meetings, memos and
evaluations. Amazon.com has also faced a union-organizing campaign, led by
group of Amazon employees in conjunction with the Washington Alliance of
Technology Workers (WashTech), a grass-roots group affiliated with the
Communications Workers of America. Last December, WashTech published
"Holiday in Amazonia," a report that detailed working conditions at
Amazon's customer service centers. Employees complained of overcrowding
with up to four people sharing cubicles, low wages making regular overtime
necessary, and a top-down management style.
[SOURCE: Washington Post (A1), AUTHOR: Mark Leibovich]
(http://washingtonpost.com/wp-srv/WPlate/1999-11/22/152l-112299-idx.html)
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