TELEPHONY
Justices Decline To Review Suit Of Baby Bells (WSJ)
Ads' Message: Talk Cheap (WP)
MINORITIES
TV Notes: Of Race and Roles (NYT)
FCC: Minorities Not Getting Fair Shake (B&C)
Chinese Youth Lack Net Access, Poll Shows (SJ Merc)
BROADCAST
Draft bill would raise caps, lower FCC profile (B&C)
In Brief: Media Access Project (B&C)
MERGER
A Surfer Bets on High Speed and a Big Deal (WSJ)
Spread of High-Speed Access Expected to Transform
Internet Usage (SJ Merc)
INTERNET
Court to Decide on Internet Porn (WP)
China Court Rules on Internet Case (WP)
Conference Underscores Growing Role of Encryption (CyberTimes)
Lyrics Site in Copyright Dispute Is Closed (CyberTimes)
Distance Learning Even Reaches Ships at Sea (CyberTimes)
MAGAZINES
Disney's Miramax Is Nearing a Pact With Hearst About Planned Magazine
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TELEPHONY
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JUSTICES DECLINE TO REVIEW SUIT OF BABY BELLS
Issue: Telephony
The Supreme Court refused to hear an appeal by three of the nation's Baby
Bells who say they are unfairly barred from the lucrative long-distance
telephone market. SBC Communications Inc., Bell Atlantic Corp. and U S West
Inc. challenged portions of the 1996 telecommunications overhaul law. The
high court's action came without comment. MCI, AT&T and Sprint had urged a
lower court ruling be left intact. The Baby Bells complained because the new
law singles them out to open their markets to rival companies for local
service before they can begin long distance service. Federal Communications
Commissioner William Kennard said, "This decision confirms the logic of the
telecom act: that competition breeds competition."
[SOURCE: Wall Street Journal (B7), AUTHOR: Mark Wigfield & Scott Ritter]
http://wsj.com/
ADS' MESSAGE: TALK CHEAP
Issue: Long Distance
Broadpoint Communications Inc. of Landover, MD is bringing commercials to
telephones and callers are choosing to listen. The company is offering two
free minutes of long distance service for every 10 to 15 seconds worth of
ads a customer hears first. Nationwide service began on January 12. Kelly
McGlauflin was in the pilot program in Pittsburgh and is already a regular
user. McGlauflin, an airline pilot, says he spends two minutes listening to
ads in his hotel room and then speaks for about 20 minutes with no phone
bill. The ads require a button be pushed to go from one to the other so a
user cannot block them out completely. Already the company says 50,000
people have signed up for the service. To join, prospective customers reveal
demographic information - household income, ethnic heritage, preferred
hobbies - on an electronic form the find on BroadPoint's Web site
www.broadpoint.com. This procedure allows the company to pick the best
advertisers for the customer. Advertisers pay BroadPoint 6 to 24 cents for
every message a customer hears. Subscribers call a toll-free access number
and enter a secret personal ID number before they dial the phone number.
Callers typically choose to hear seven or eight ads and accrue about 15
minutes of free service per call.
[SOURCE: Washington Post (A1), AUTHOR: Mark Leibovich]
http://www.washingtonpost.com/wp-srv/WPlate/1999-01/20/141l-012099-idx.html
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MINORITIES
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TV NOTES: OF RACE AND ROLES
Issue: Television/Minorities
At a semiannual convention of TV critics in New York, where the major
networks have been parading this season's best and brightest, sightings of
black actors and producers have been few and far between. PBS's
presentations, however, painted a very different picture from those of the
commercial networks. Over half of the programs spotlighted by PBS were by or
about Africans or African-Americans. Kathy Quattrone, PBS's programming
chief, said the season's schedule was intended to show the continuing effort
of public television to weave together the different genres and diverse
voices of the American landscape. Some of PBS's upcoming programs include a
"Kennedy Center Presents" tribute to Muddy Waters (Jan. 27), a series in
February called "I'll Make Me a World: A Century of African-American Art,"
and a "Frontline" profile of Paul Robeson (Feb. 24).
[SOURCE: New York Times (B10), AUTHOR: Lawie Mifflin]
http://www.nytimes.com/yr/mo/day/news/arts/tv-notes.html
FCC: MINORITIES NOT GETTING FAIR SHAKE
Issue: Minorities
A Federal Communications Commission-sponsored report prepared by the Civil
Rights Forum on Communications Policy says many big advertisers
intentionally steer away from black and Hispanic audiences or refuse to pay
prevailing ad rates to minority-targeted stations. FCC Chairman William
Kennard charged last week that African-American and Spanish-language outlets
face discrimination from major marketers. He said, "These practices are not
only unfair, they do not make any business sense." Commissioner Gloria
Tristani, Rep. Carolyn Kilpatrick (D-MI), civil rights leaders and
advertising agency officials joined Chairman Kennard at a press conference to
announce the report conclusions. A spokesman for House Telecommunications
Subcommittee Chairman Billy Tauzin (D-LA) reached a different conclusion,
"If a marketer doesn't spend money, it doesn't mean he is guilty of
discrimination." He said the $12,000 report appeared to be "a waste of
taxpayers' money." Report author Kofi Ofori stopped short of blaming racist
practices for the revenue discrepancies, conceding that the survey response
was too small, but he did suggest further study. The report focused
primarily on radio because TV generally does not aim to reach the same
narrow demographics, but some Spanish-language TV stations were included.
According to the report, revenues at minority-oriented outlets
under-perform, even when the stations are ratings winners.
[SOURCE: Broadcasting&Cable (p. 108), AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/
CHINESE YOUTH LACK NET ACCESS, POLL SHOWS
Issue: Minorities
A study by the China Youth Development Foundation and the China Youth
Research Center finds that 70% of China's urban youth have no access to the
Internet and only a handful are regular web surfers; 69.1% said they have
"no way to get on-line," but 66% of young people consider the Internet a
"miracle of the modern world." The poll reached 6,500 young people between
the ages of 14 and 28 in nine Chinese cities and provinces. More than 2.1
million Chinese used the Internet last year, state tallies show, up from
670,000 in 1997. Speaking in Beijing earlier this month, MIT professor
Nicholas Negroponte predicted Internet use in China would balloon to 10
million by the year 2000.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
http://www.mercurycenter.com/breaking/headline2/072803.htm
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BROADCAST
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DRAFT BILL WOULD RAISE CAPS, LOWER FCC PROFILE
Issue: Broadcast and Cable Regulation
Senate Commerce Committee Chairman John McCain (R-AZ.) is floating a draft
bill that would allow broadcast networks to own many more TV stations and
would allow satellite companies to carry local broadcast signals. The TV
ownership cap would rise from 35% to 50% of the national viewing audience, a
policy change for which networks are fighting hard but which network
affiliates are not supporting. The draft bill would allow satellite
broadcasters to import distant network signals to households unable to
receive over-the-air TV until January 1, 2002. At that time satellite TV
companies would have to carry all broadcasters' local signals.
Representatives of the satellite TV industry oppose phasing out the distant
network signal business. Local broadcasters want Congress to ensure that DBS
providers will carry all their signals as soon as they are technically able.
The bill would also reduce the power of the Federal Communications
Commission over broadcasters by requiring a "supermajority" of four out of
five votes to approve new broadcast regulation. It would repeal the FCC's
ability to approve mass media mergers and give that authority wholly to the
Justice Department. The Equal Employment Opportunity Commission would
receive the FCC's jurisdiction over EEO rules for broadcasters. Broadcast
lobbyists say Congress is unlikely to agree to such drastic limitations on
the FCC's powers.
[SOURCE: Broadcasting&Cable (p. 3), AUTHOR: Paige Albiniak]
http://www.broadcastingcable.com/
IN BRIEF: MEDIA ACCESS PROJECT
Issue: Digital TV
Media Access Project last week asked the Federal Communications Commission
to impose fees on home shopping channels of digital broadcasters. Home
shopping, infomercials and other direct marketers were exempted from a 5%
fee on their revenue for ancillary digital services. MAP claims the
exemption should not have been granted. The FCC said home shopping was
exempt because the services pre-dated the rule and because viewers don't pay
for the programming. MAP said that Congress intended that programming paid
for by third parties be subjected to the fee.
[SOURCE: Broadcasting&Cable (p. 10), AUTHOR: B&C Staff]
http://www.broadcastingcable.com/
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MERGER
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A SURFER BETS ON HIGH SPEED AND A BIG DEAL
Issue: Merger
In the largest Internet merger to date, At Home Corp. has agreed to exchange
$7.5 billion in stock to acquire Excite Inc., one of the World Wide Web's
busiest sites. At Home has exclusive rights through the year 2002 to deliver
high-speed Internet access to nearly 60 million North Americans over the
networks of 19 cable television operators and is enjoying sky-high stock
prices because consumers and companies are beginning to realize the value of
that access. America OnLine is aggressively lobbying at the federal and local
levels to force cable providers to open their networks to At Home
competitors. AOL wants cable companies to use their Internet service. At
Home's CEO, Tom Jermoluk, says the content offerings, the audience and the
targeted advertising capabilities of Excite are key to building At Home into
a major media brand before the exclusive rights expire. The cable companies
gave At Home the exclusive contract and a revenue split that gives At Home
35% of subscribers $39.95 monthly fee.
[SOURCE: Wall Street Journal (B1), AUTHOR: David Bank]
http://wsj.com/
See Also:
EXCITE INC. TO BE BOUGHT BY AT HOME
[SOURCE: Washington Post (F1), AUTHOR: Leslie Walker]
http://www.washingtonpost.com/wp-srv/WPlate/1999-01/20/048l-012099-idx.html
NET LANDSCAPE GETS NEW FEATURE
[SOURCE: San Jose Mercury News, AUTHOR:K Oanh Ha]
http://www.mercurycenter.com/business/top/062513.htm
SPREAD OF HIGH-SPEED ACCESS EXPECTED TO TRANSFORM INTERNET USAGE
Issue: Bandwidth
What will higher-speed Internet access mean for users? Many people were
attracted to the Internet when they learned there's lots of info out there
that they want: sports scores, stock prices and stories about favorite
entertainers. Higher bandwidth means ports scores will be accompanied by
instant replays, stock prices will be supplemented by interviews with
company officials, and links to stories about entertainers will give way to
on-demand viewing of their performances. Tuesday saw the announcement that
high-speed Internet service provider At Home will purchase the Excite family
of websites as well as the announcement by NBC's Snap Web site announced
that it may precede Excite in offering Web content specifically tailored for
high-speed users. Jupiter Communications estimates that there are only
500,000 residential high-speed users now, but projections call for it to
grow to 2 million by the end of 1999, with more than 11 million households
expected to have such links by 2002. "We can create a richer experience for
the high-bandwidth users," said Edmond Sanctis, chief operating officer of
Snap. "The user is interested in accessing bigger files, richer media and
more graphical content."
[SOURCE: San Jose Mercury News, AUTHOR: Stephen Buel sbuel( at )sjmercury.com]
http://www.mercurycenter.com/business/center1/hispeed012099.htm
MERGER BOOSTS NEXT-GENERATION USERS
[SOURCE: San Jose Mercury News, AUTHOR: K Oanh Ha kha( at )sjmercury.com]
http://www.mercurycenter.com/business/center1/( at )home012099.htm
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INTERNET
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COURT TO DECIDE ON INTERNET PORN
Issue: Internet/Content
The Child Online Protection Act, Congress's second attempt to regulate
pornography on the Internet, has encountered just as much opposition as it's
predecessor, which was struck down in a court ruling last year. The Act
would require commercial Webs sites to gather proof of age, before allowing
Internet users to access any material deemed "harmful to minors." The
American Civil Liberties Union and a group of over 20 organizations, ranging
from Journalist to Internet service providers, are challenging the law on
First Amendment grounds. "If Congress wins this, the Internet would go from
being the most revolutionary, creative technology in history to a pretty
tame, often meaningless means of communicating only about things that are
fit for a 6-year-old," said Stefan Presser, legal director of the ACLU of
Pennsylvania. U.S. District Judge Lowell Reed, who temporarily blocked
enforcement of the law, is expected to rule on the case by Feb. 1.
[SOURCE: Washington Post (Online), AUTHOR: Joann Loviglio (Associated Press)]
http://www.washingtonpost.com/wp-srv/WAPO/19990120/V000356-012099-idx.html
CHINA COURT RULES ON INTERNET CASE
Issue: International/Internet
Lin Hai, a Chinese software entrepreneur, was convicted Wednesday of
subversion for supplying e-mail addresses to dissidents abroad and sentenced
to two years imprisonment. Lin's wife, Xu Hong, was in the Shanghai court
for the sentencing. She said that she does not know whether they will
appeal. Lin was convicted of "inciting the overthrow of state power" for
giving e-mail addresses of 30,000 Chinese computer users to "VIP Reference,"
a pro-democracy journal published on the Internet by Chinese dissidents in
the United States. Lin is the first person convicted in China's effort to
crush dissent in cyberspace even as it promotes the Internet for economic
and educational use.
[SOURCE: Washington Post (Online), AUTHOR: Joe Mcdonald (Associated Press)]
http://www.washingtonpost.com/wp-srv/WAPO/19990120/V000398-012099-idx.html
CONFERENCE UNDERSCORES GROWING ROLE OF ENCRYPTION
Issue: Encryption
"It's been said that public key encryption is a solution in search of a
problem," said Jim Bidzos, president of RSA Data Security. "Well, we've
found the problem and its called e-commerce." The company has been
sponsoring a conference on encryption software since 1991. Once an arcane
and highly mathematical technology that was used mainly by the Department of
Defense, encryption is now becoming a concern of credit card companies
securing transactions.
[SOURCE: CyberTimes, AUTHOR: Peter Wayner pwayner( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/articles/20rsa.html
LYRICS SITE IN COPYRIGHT DISPUTE IS CLOSED
Issue: Copyright
The International Lyrics Server http://www.lyrics.ch, a popular Web site
containing the words to more than 100,000 songs, was closed last week after
music publishers accused the site's Switzerland-based operators of copyright
violations and police officers seized their computers, the site's founder
said. The site had averaged ~100,000 visitors a day -- people searching for
the song lyrics of popular bands, show tunes and more obscure works. The
police crackdown appears to be another "success" for the music industry as
it attempts to stop Internet sites that reproduce copyrighted material
without permission. "They think that they have lost millions through our
server," said the server's founder, "but they have to prove this, and they
didn't prove it yet. If they can, this could cost me millions [in damages]
-- which I never can pay back. But I think the main goal is not to get
money, because I don't have too much of that, but to have something of an
example. They want [use this episode] to tell other sites that it's really
clear you don't have any chance."
[SOURCE: CyberTimes, AUTHOR: Matthew Mirapaul mirapaul( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/articles/20lyrics.html
DISTANCE LEARNING EVEN REACHES SHIPS AT SEA
Issue: EdTech
Georgia College & State University in Milledgeville (GA), Old Dominion
University in Norfolk (VA) and Troy State University in Troy (AL) are all
participating in a program to make graduate-level course work available to
men and women serving in the Navy. Using computers, satellite transmissions
and video conferencing, courses are now available on two aircraft carriers
and could be available on all 12 eventually. "There is a real classroom with
students who consider one another classmates, a professor with lots of
information who has real expectations and a curriculum administered by a
real institution," commented Chief Warrant Officer Anthony L. Cruz, who says
he appreciates "the value of a higher education in life" and hopes to earn a
masters degree through the program.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels mendels( at )nytimes.com]
http://www.nytimes.com/library/tech/99/01/cyber/education/20education.html
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MAGAZINES
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DISNEY'S MIRAMAX IS NEARING A PACT WITH HEARST ABOUT PLANNED MAGAZINE
Issue: Books/Magazines
Walt Disney Co.'s Miramax Films unit is nearing an agreement with Hearst
Corp. to have Hearst distribute and take a partial ownership stake in a new
Miramax magazine called Talk. Former New Yorker editor Tina Brown was
recruited last year to run the magazine. For Miramax, part of the rationale
for giving up an ownership stake is to ensure a strong commitment from its
distribution partner. Miramax would benefit from Hearst's publishing
expertise. Hearst would be adding a high-profile, celebrity-filled title
that would compete with Vanity Fair, which is produced by Conde Nast,
Hearst's biggest rival. Hearst is already known for production of magazines
for women.
[SOURCE: Wall Street Journal (B9), AUTHOR: Bruce Orwall & Wendy Bounds]
http://wsj.com/
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