Communications-related Headlines for 12/16/99

POLITICS
Most States Now Offering Campaign Data Online (CyberTimes)

DTV
FCC Seeks Comment On Public Interest Obligations Of Digital
Broadcasters (MAP)

E-COMMERCE
Retailers and Governors Attack Proposal to Make the Internet a
Tax-Free Zone (NYT)
Michigan Plans Lawsuits Against Online Pharmacies (WSJ)
E-Commerce Spreads Shaky Roots Into Far Reaches of Latin America
(WSJ)

PHILANTHROPY ONLINE
Taking the Gift of Giving Online (WP)

MERGERS
MCI, Sprint Asked for Details on Internet Holdings (WSJ)
DDI to Acquire KDD, IDO to Create Japan's Second-Largest Telecom
Firm (WSJ)

ANTITRUST
Justice Probing MTV's Power (WP)
Comcast Denies Antitrust Claim Filed by GTE on Internet Services
(WSJ)

POLITICS

MOST STATES NOW OFFERING CAMPAIGN DATA ONLINE
Issue: Politics
Just a Few years ago, it took a citizen true dedication to be able to view
records of contributions to state political campaigns. According to two
recent studies, however, it has become easier than ever for state residents
to see campaign finance disclosures on the Internet. The Digital Sunlight
Awards program, a study conducted by the nonprofit California Voter
Foundation and financed by the Joyce Foundation in Chicago, has gathered
information Web disclosure requirements in all 50 states. "Hopefully people
can use our findings to help move their states forward," said Kim Alexander,
president of the California Voter Foundation. "This is a very promising area
in political reform."
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/12/cyber/articles/16campaign.html)

DTV

FCC SEEKS COMMENT ON PUBLIC INTEREST OBLIGATIONS OF DIGITAL BROADCASTERS
Issue: Digital Broadcasting
Media Access Project ("MAP") applauded the Federal Communications Commission
("FCC") for releasing a Notice of Inquiry ("NOI") today on the duties
digital broadcasters owe their local communities and the American people.
"This is a good beginning in requiring broadcasters to give the public the
service it deserves under the law," said Andrew Jay Schwartzman, President
and CEO of MAP. The NOI follow up on recommendations from a committee
commissioned by Vice President Gore, which examined the public interest
obligations of broadcasters in the Digital Age. "I am particularly pleased
at the consideration given to improved public disclosures by broadcasters,
as proposed by the Gore Commission," said Schwartzman, who also promised
that MAP would press the FCC to require broadcasters to give free time to
all candidates for public office.
[SOURCE: Media Access Project]
(http://www.mediaaccess.org/)

E-COMMERCE

RETAILERS AND GOVERNORS ATTACK PROPOSAL TO MAKE THE INTERNET A TAX-FREE ZONE
Issue: E-Commerce
Proposals to make the Internet a tax-free zone by commission created by
Congress have come under attack today by major retailers, shopping-center
owners and state and local officials. A coalition called E-Fairness,
comprised Wal-Mart Stores, Federated Department Stores, the International
Council of Shopping Centers and other members, told the Advisory Commission
on Electronic Commerce that such a proposal could have "potentially
devastating economic, tax and social consequences." Gov. William J. Janklow
of South Dakota, speaking on behalf of state and local governments said,
"America can't survive if we have discriminatory taxes." On the other side
was Gov. James S. Gilmore III of Virginia, the commission's chairman, who
advocates a blanket tax exemption for Internet commerce. Gilmore has said
that the Internet's growth "must not be thwarted by taxation."
[SOURCE: New York Times (), AUTHOR: David Cay Johnston]
(http://www.nytimes.com/library/tech/99/12/biztech/articles/16tax.html)

MICHIGAN PLANS LAWSUITS AGAINST ONLINE PHARMACIES
Issue: Health/Law
After a mandatory 10-day wait for response from companies, Michigan Attorney
General Jennifer Granholm plans to file lawsuits alleging that ten online
pharmacies sold prescription drugs to state residents, but the companies
didn't have valid Michigan licenses and didn't verify that the patients had
undergone examinations by doctors. Granholm's office has sent notices to the
companies of the state's intent to sue and the companies' face a penalty of
$25,000 for each violation under Michigan law. In her investigation,
undercover investigators were able to shop online and receive by mail
popular drugs, including the Viagra and Phentermine. Granholm said the sites
also had no safeguards to screen out minors or people with medical
conditions that conflicted with the drugs. "You might as well put
prescription drugs on store shelves with the candy," she said. The ten
companies include ConfiMed.com of Seattle; Doctors ASAP of Utah; Gynemed Net
of West Virginia; Ken's Pharmacy of Florida; KwikMed of Arizona; Millennium
Medical Group of Florida; RxLeader of Virginia; Safeweb Medical of Florida;
and Viareal of Las Vegas.
[SOURCE: Wall Street Journal, AUTHOR: Sholnn Freeman]
(http://interactive.wsj.com/articles/SB94530355134300302.htm)

E-COMMERCE SPREADS SHAKY ROOTS INTO FAR REACHES OF LATIN AMERICA
Issue: Internet/E-commerce
Latin Americans will buy $90 million of goods from U.S. online retailers
this year and $77 million of items Web sites based in the region, according
to a study by The Boston Consulting Group. BCG predicts e-commerce in Latin
America will grow to $3.8 billion by 2003. According to estimates by eStats,
an Internet research firm, there are about 4.1 million active Internet users
in Latin America in 1999, about 1% of the population. That number will
double to 8.7 million in 2000 according to predictions. However there are
real problems for online businesses expanding into Latin America due to low
computer penetration, high access costs, logistical support problems,
cultural and security hurdles, and postal delivery problems. While packages
sometimes arrive without a hitch, other times they're hit with duties that
can more than double the price of goods or they are reviewed for content and
sent back. Consumer experiences also vary by country. Many Latin Americans
are getting their first taste of e-commerce by using successful U.S. sites,
although much of the growth in near future is expected to be in local
retailers, banks, brokerages and other online services. Grocery sales will
account for the largest chunk of online purchases in Latin America this
year.
[SOURCE: Wall Street Journal, AUTHOR: Michelle Wallin - Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB945303685272510746.htm)

PHILANTHROPY ONLINE

TAKING THE GIFT OF GIVING ONLINE
Issue: Internet/ Philanthropy
More and more charities are soliciting and receiving donations online. For
instance, the American Red Cross, which in fiscal 1998 received fewer than
600 online donations totaling $172,000, has seen a flow in fiscal 1999 of
22,000 donations totaling $2.5 million. Besides individual charities, some
sites such as Helping.org (www.helping.org) link online donors to a variety
of nonprofits. The Internet is expected to appeal particularly to younger
donors and get the attention of people who might otherwise not give.
Retailers and marketing groups are joining with charities online hoping that
Christmas shopping and holiday giving will stimulate each other. Some
retailers enable customers to buy products online to donate to a specific
charity that is being hosted by the site. Of the 70 percent of American
households that gave to charity this year, only about 1 percent used the
Web, according to Independent Sector, a Washington-based coalition of
volunteer organizations. However, the numbers are expected to increase since
this year is the first year online giving has been significant.
[SOURCE: Washington Post (C04), AUTHOR: Sandra Evans]
(http://washingtonpost.com/wp-srv/WPlate/1999-12/16/263l-121699-idx.html)

MERGERS

MCI, SPRINT ASKED FOR DETAILS ON INTERNET HOLDINGS
Issue: Merger
Yesterday, Federal Communications Commission General Counsel Christopher
Wright asked MCI WorldCom and Sprint to provide information on what they
would do with their Internet backbone holdings in their planned merger. The
letter does not say the FCC is swaying either way in the matter but asks for
additional data on what Internet services they provide and the merger's
potential impact on the market. An MCI spokesman said, "We've said all along
we're prepared to address the Internet issue. We're happy to supply the FCC
with any additional facts that it desires." The FCC will look at the planned
merger after the Justice Department completes its review.
[SOURCE: Wall Street Journal, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB945303380853420155.htm)

DDI TO ACQUIRE KDD, IDO TO CREATE JAPAN'S SECOND-LARGEST TELECOM FIRM
Issue: Merger
Today, Japan's second-largest mobile phone group, DDI, said that it has
agreed to buy rivals KDD, Japan's largest long-distance phone company, and
IDO, a smaller mobile phone operator, creating Japan's second-largest
telecommunications company. The new company will be second in size only to
Nippon Telegraph and Telephone, the world's largest phone company. They will
combine their operations by October of next year. Total assets of the new
company will amount to 2.194 trillion yen ($21.3 billion). Analysts said
this creates something big enough to take on NTT and Japan Telecom. The
largest shareholders in the new company will be Kyocera, a maker of
cellular-phone handsets and Toyota, the nation's largest auto maker.
[SOURCE: Wall Street Journal, AUTHOR: An Interactive Journal News Roundup]
(http://interactive.wsj.com/articles/SB945320126707947604.htm)

ANTITRUST

JUSTICE PROBING MTV'S POWER
Issue: Television/Antitrust
The Justice Department is investigating music television network MTV for
possible antitrust violations, looking into complaints from record companies
that MTV's control over the airing of music videos harms record companies
and limits would-be competitors. Investigators also are looking at the
purchase of two music-video channels by MTV's parent, Viacom Inc. The
investigation centers on Viacom's purchase in July of the Box, a small cable
TV channel that plays music videos. By acquiring the Box, Viacom added
another music network to a lineup that includes MTV, VH-1 and M2, a channel
distributed primarily overseas. Viacom has a $35 billion deal pending to
purchase CBS Incorporated, which would add to its stable of music
television, giving it ownership of CBS's Country Music Television cable
channel and its Infinity Broadcasting chain of radio stations. The Infinity
is the nation's second-largest radio chain.
[SOURCE: Washington Post (E01), AUTHOR: Paul Farhi]
(http://washingtonpost.com/wp-srv/WPlate/1999-12/16/189l-121699-idx.html)

COMCAST DENIES ANTITRUST CLAIM FILED BY GTE ON INTERNET SERVICES
Issue: Broadband
Comcast, responded to a suit filed in October by GTE in the western district
of Pennsylvania, denying antitrust charges made against it and other
companies over offering Internet services. GTE's suit claims that Comcast
and AT&T were illegally forcing their cable-modem subscribers to buy Excite
At Home's Internet-service provider. "For years, GTE and other telephone
companies owned the only on-ramp to the information superhighway, and
collected easy profits rather than developing and rolling out advanced
high-speed services to consumers," said David Juliano, senior vice president
and general manager of Comcast Online, responding to the lawsuit. Now, the
phone companies "are attempting to block the cable industry's investment" in
high-speed Internet services by saddling "cable competitors with crippling
regulations."
[SOURCE: Wall Street Journal, AUTHOR: Dow Jones Newswires]
(http://interactive.wsj.com/articles/SB94530153458374716.htm)

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