Communications-related Headlines for 11/7/01

JOURNALISM
Network Coverage a Target of Fire From Conservatives (NYT)

INTERNET
Broadband Defectors on the Rise (CNET)
ICANN Critics Oppose Governance Recommendations (WP)
File-Swapping Case May Break New Ground (CNET)
Brazil To Open Post Office Internet Booths (WP)

COMPETITION
States Split on Microsoft Deal (WP)
FCC to Ease Airwave Restrictions (WP)
Justice Withholds Support for BellSouth's Bid To Sell Long Distance
in Georgia, Louisiana (WSJ)

PRIVACY
Consumer Groups Urge FCC to Protect Phone Privacy (EPIC)

JOURNALISM

NETWORK COVERAGE A TARGET OF FIRE FROM CONSERVATIVES
Issue: Journalism
The television news networks are increasingly coming under criticism from
conservatives who say they exhibit a lack of patriotism or are overly
negative toward the government as they cover the war. Many of the critiques
stem from information provided by a conservative media watchdog organization
called the Media Research Center, which hires full-time monitors to watch
the network newscasts. How their criticism will affect coverage of the war
is an open question. But news executives at CNN, ABC and MSNBC said they
were conscious of the criticism while making their day-to-day decisions
about coverage. Brit Hume, the Fox News Channel anchor, said that in this
conflict, traditional rules no longer applied. "Look, neutrality as a
general principle is an appropriate concept for journalists who are covering
institutions of some comparable quality," Mr. Hume said. "This is a conflict
between the United States and murdering barbarians."
[SOURCE: New York Times, AUTHOR: Jim Rutenberg And Bill Carter]
(http://www.nytimes.com/2001/11/07/politics/07MEDI.html)
(requires registration)

INTERNET

BROADBAND DEFECTORS ON THE RISE
Issue: Broadband
Broadband subscribers are beginning to do what some believed could not
happen: abandon a new technology for an older one. Specifically, consumers
are dumping their broadband connections in favor of dial-up. While it is yet
to be determined whether these defectors will eventually re-up, what is
clear is the economy, continuing broadband price hikes and a lack of
compelling broadband content are prompting some to cancel their higher-speed
connections. The impact is noticeable in the San Francisco Bay Area, where
thousands of high-tech employees have lost their jobs. CNET notes that the
defectors may not show up in the industry's earnings reports: broadband
providers report quarterly growth in the overall number of subscribers - not
losses. "I think the churn is just now beginning," adds Imran Khan, a Yankee
Group research analyst. The industry disputes the analysis: EarthLink
spokesman Kurt Rahn says that high-speed subscribers would "rather sell
their grandmothers" than go back to a pokey dial-up connection. Maybe, but
home broadband consumers can rely on their office's fast connection, rather
than incur the cost at home. According to a recent Jupiter Research study,
fewer than half of broadband subscribers used their connections for heavy
multimedia use - they are still basically downloading email and surfing the
Web as usual, practices not worth a $50 per month broadband bill.
[SOURCE: CNET News.com, AUTHOR: John Borland]
(http://news.cnet.com/news/0-1004-200-7789746.html)

ICANN CRITICS OPPOSE GOVERNANCE RECOMMENDATIONS
Issue: Internet
Critics of ICANN have blasted a new proposal for selecting the publicly
elected members of the ICANN board. Should the Internet Corporation for
Assigned Names and Numbers (ICANN) approve the proposal, rank-and-file Web
users would be effectively barred from "meaningful" participation in the
ICANN process, critics said. A board recommended to ICANN that individual
domain name owners around the world be permitted to elect one-third of the
ICANN board of directors, which has final say in all ICANN decisions. In
past years anyone over the age of 16 with an email address could vote for
the publicly elected members. However, the potential for fraud through dummy
email addresses led ICANN to reconsider the process. Additionally critics
objected to the proposed revised number of publicly elected officialys.
ICANN critics say that publicly elected officials should fill half of the 18
board seats, rather than 4 seats as outlined in the proposal.
[SOURCE: Washington Post, AUTHOR: David McGuire]
(http://www.washtech.com/news/netarch/13583-1.html)

FILE-SWAPPING CASE MAY BREAK NEW GROUND
Issue: Intellectual Property
The Electronic Frontier Foundation (EFF), which has represented hackers,
cryptographers and computer scientists in its push for digital rights,
agreed to defend MusicCity against copyright infringement charges by movie
studios and record labels. The EFF and other supporters argue that the suit,
aimed at the popular MusicCity, Grokster and Kazaa networks, represents a
clear instance of the entertainment industry trying to shut down a
technology that has many uses--something the U.S. Supreme Court has stopped
before. "This case is about the freedom of technologists to innovate and the
public's right to communicate," said Fred von Lohmann, senior intellectual
property attorney for the EFF. Representatives of the Recording Industry
Association of America (RIAA) Chief Executive Hilary Rosen has tried to
reach out to the technology community to quell fears that copyright holders
are looking to shut down development of peer-to-peer software itself. "The
question isn't whether peer-to-peer or any other particular technology is
good or bad," Rosen said. "The question is...whether they'll respect what
artists create just like we in the recording business respect what the
business sponsors and software developers in this audience create."
[SOURCE: Cnet, AUTHOR: John Borland]
(http://news.cnet.com/news/0-1005-200-7798704.html?tag=mn_hd)

BRAZIL TO OPEN POST OFFICE INTERNET BOOTHS
Issue: Digital Divide
Brazil is pledging to install Internet booths in 4,000 post offices next
year, giving free Web access to some 150 million people in a massive effort
to bridge the country's gaping digital divide, President Fernando Henrique
Carodoso announced. The Internet, contrary to what many people still think,
is of great use to all people,'' said Cardoso. ``Citizens who have business
with organs of the federal government -- like pension requests, taxes,
judicial questions or even a project in Congress, need the Internet. Poor
students need the Net for their research.'' That's why the government will
give residents free access for 10-minute long sessions, Cardoso said. The
kiosks will be placed in cities with 10,000 residents or more, and then put
in areas with smaller populations.
[SOURCE: Washington Post, AUTHOR: Associated Press]
(http://www.siliconvalley.com/docs/news/tech/033749.htm)

COMPETITION

STATES SPLIT ON MICROSOFT DEAL
Issue: Antitrust
Nine states and the District of Columbia said yesterday they would not go
along with the settlement already approved by the company and the Department
of Justice. Nine other states told U.S. District Court Judge Colleen
Kollar-Kotelly in a proceeding this afternoon. The 19 jurisdictions had
joined the federal government in the original litigation against Microsoft.
New York, Illinois, North Carolina, Kentucky, Michigan, Ohio, Wisconsin,
Louisiana and Maryland signed off on the deal. Additionally, Microsoft
rejected a state suggestion of another round of settlement talks to reach a
more appealing deal. "The issues in this case have been beaten to death and
they have been beaten to death by people who are worn out," said John
Warden, outside counsel for the software giant. "Let me be as clear as I
possibly can. ... Microsoft believes the settlement process has come to an
end."
[SOURCE: Washington Post, AUTHOR: Ariana Eunjung Cha and Jonathan Krim]
(http://www.washingtonpost.com/wp-dyn/articles/A47104-2001Nov6.html)

FCC TO EASE AIRWAVE RESTRICTIONS
Issue: Wireless
The FCC will vote tomorrow on whether to change the cap on spectrum that a
single mobile telephone company can own in a market. The vote tomorrow is on
whether to raise the current spectrum cap by 20 percent before it moves to
completely abolish the limit in 12 to 18 months. Lifting the cap and its
complete removal would certainly lead to greater consolidation in the
wireless arena. "We have a spectrum shortage, and this is the down payment
to overcome that by allowing there to be more efficient use of what spectrum
is out there," said Thomas E. Wheeler, president and chief executive of the
Cellular Telecommunication & Internet Association. The current cap limits a
company to owning no more than 45 megahertz of spectrum out of the 185
megahertz available in each market.
[SOURCE: Washtech.com, AUTHOR: Christopher Stern]
(http://www.washtech.com/news/telecom/13585-1.html)

JUSTICE WITHHOLDS SUPPORT FOR BELLSOUTH'S BID TO SELL LONG DISTANCE IN
GEORGIA, LOUISIANA
Issue: Competition
The Telecommunications Act of 1996 requires incumbent carriers like
BellSouth to make "unbundled network elements," such as local loops, switch
ports, and transport facilities, available to competitors for lease on the
basis of incremental cost. In return, the Baby Bells may apply to provide
long-distance service. The Department of Justice on Tuesday declined to
support BellSouth application to the Federal Communications Commission to
provide long-distance telephone service in Georgia and Louisiana.
[SOURCE: Wall Street Journal, AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB1005092682739023160.htm)
(requires subscription)

PRIVACY

CONSUMER GROUPS URGE FCC TO PROTECT PHONE PRIVACY
Issue: Privacy
On November 1, EPIC and seventeen civil liberties and consumer groups filed
comments with the Federal Communications Commission urging the FCC to adopt
opt-in for customer calling data. The FCC's request for comments followed a
federal court decision that the FCC's original opt-in proposal violated the
First Amendment because there was not adequate evidence that opt-in would
protect customer privacy interests. The new comments note that 86% of
consumers favor opt-in for communications services.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

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