INTERNET
Internet Panel Proposes Rules For Addresses (WSJ)
USA Networks To Merge Unit with Lycos (WSJ)
ELECTRONIC COMMERCE
Despite Reprieve, Tax Laws Complicate Internet Retailing (CyberTimes)
A Swedish Model for Sales: Hold the Content (CyberTimes)
Leading Recording Companies to Test Online Digital Sales (NYT)
ALLIANCES
Telecom, Net Firms to Take Web Wireless (WP)
SBC Forms Alliance with Long Distance Firm
TELECOM GENERAL
Progress Report: Growth and Competition in
U.S. Telecommunications 1993-1998 (NTIA)
SATELLITE
In Satellite-TV Carriers' Fight With Networks, Lawmakers Scramble To
Fend Off PR Disaster (WSJ)
INFOTECH
Survey finds half of American homes have PCs (SJ Merc)
2 New Products Will Reach Out to Not-Yet-PC Masses (SJ Merc)
NEWSPAPERS
Newspapers Try "Public Journalism" To Expand Readers (WSJ)
ANTITRUST
Microsoft Executive Ends the Day Mostly Unscathed (NYT)
INTERNATIONAL
New Phone Fee In Germany Pleases No One (WSJ)
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INTERNET
========
INTERNET PANEL PROPOSES RULES FOR ADDRESSES
Issue: Internet
A government panel proposed rules for registering Internet addresses. The
panel, Internet Corporation for Assigned Names and Numbers (or Icann) was
formed last fall in order to spur competition in the domain-registration
market. The panel said they kept requirements "pretty low" in order to promote
competition and diversity. One standard is that address registrars would need
$100,000 in liquid assets and $500,000 in liability insurance, "setting the bar
low enough to accommodate smaller companies." Other guidelines are that
registrars need to be well staffed in order to "prevent malicious or
accidental disruptions of operations," be able to handle customer service and
registrations, and allow customers to change registrars without disrupting
their service.
[SOURCE: Wall Street Journal (p. B6), AUTHOR: John Simons]
REQUIREMENTS FOR INTERNET REGISTRARS ANNOUNCED
Issue: Internet Regulation
The Internet Corporation for Assigned Names and Numbers
http://www.icann.org announced the requirements for companies that want to
compete with Network Solutions Inc. in the business of registering Internet
addresses. Prospective registrars must have $100,000 in the bank, $500,000
in liability insurance and a proven computer infrastructure. ICANN also
posted competing sets of proposed bylaws for the supporting organization
being formed to help the nonprofit corporation decide when and how to add
new top-level domains. ICANN is asking for public comment on the guidelines
and bylaws which its board of directors will decide on March 2 through 4 in
Singapore.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/99/02/cyber/articles/09domain.html
USA NETWORKS TO MERGE UNIT WITH LYCOS
Issue: Merger
USA Networks is expected to announce today a merge of the Home Shopping
Network with Lycos. Ticket Master Online-City Search, a separately
traded company that USA controls is also part of the deal. The new company,
called USA/Lycos Interactive Networks Inc. will have 1.5 billion in sales and
reach 30 million Web users and half of all Web surfers. "According to the
people familiar with the deal, USA Networks and Lycos envision an
electronic-commerce giant that will direct consumers from the Web to the Home
Shopping Network and back." Lycos will also be promoted on USA Network and the
Sci-Fi channel. Lycos has grown quickly recently by spending $250 million last
year on acquisitions by tracking where Lycos users went after leaving the site.
[SOURCE: Wall Street Journal (A3), AUTHOR: Eben Shapiro and Jon G. Auerbach]
===================
ELECTRONIC COMMERCE
===================
DESPITE REPRIEVE, TAX LAWS COMPLICATE INTERNET RETAILING
Issue: E-Commerce
Did you think the Internet Tax Freedom Act made the global computer network
a duty free zone? Not so. In the eyes of most state tax collectors,
Internet retailers are treated like catalogue companies: if the company has
a physical presence in the customer's state, the company must charge a sales
tax. But sales tax requirements only affect companies with a physical
presence in a particular state, so Internet retailers who have a real-world
presence are struggling with complicated tax laws.
[SOURCE: CyberTimes, AUTHOR: Bob Tedeschi tedeschi( at )nytimes.com]
http://www.nytimes.com/library/tech/99/02/cyber/commerce/09commerce.html
A SWEDISH MODEL FOR SALES: HOLD THE CONTENT
Issue: E-Commerce
It's all about the meatballs. When we think about successful Web retailers
-- like Amazon.com -- we think about tailored offerings, specialized
information and community-building features -- packaging content with th
items you wish to sell (like reviews and purchasing suggestions. But a
Swedish company, Boxman http://www.boxman.com, has a new credo: "Move away
from content if you want to sell things." "Those who claim that the value
of their company resides in the ability to mass-tailor advice and
information are wasting time," said a company vice president. "The value of
the company is in selling more music to more people, faster and cheaper.
When we ask customers what they want, they don't answer 'community feeling'
or 'shopping experience.' They want more music samples, ease of use, speed
and low prices. That's all that they care about." Boxman claims 5% of the
overall CD market in the Scandinavian countries -- and to be already turning
a profit.
[SOURCE: CyberTimes, AUTHOR: ]
http://www.nytimes.com/library/tech/99/02/cyber/eurobytes/09eurobytes.html
LEADING RECORDING COMPANIES TO TEST ONLINE DIGITAL SALES
Issue: E-Commerce
The five major recording companies said Monday that they would, for the
first time, begin to test selling albums as digital information transmitted
over the Internet. IBM has created software for the effort. The system
would let consumers pay for an album by credit card, download it with a
cable modem in less than 10 minutes, and play it back through computer
speakers or record it on tape or other media. The initial test will involve
1,000 subscribers of Time Warner's Roadrunner cable modem service in San
Diego beginning in April. In this test, they will employ a digital
watermark containing information on where the music came from and who owns
the rights. The data will be encrypted so that only a legitimate user can
play it back. The music companies (Sony, Time Warner, Universal, EMI and
Bertelsmann) also want the on-line music to be "copy-protected," enabling
them to determine the number of digital copies a consumer could make. Music
companies are searching for ways to sell legitimate copies of their products
on-line in a secure format because the MP3 format is being used on the
Internet for distributing music recordings that have been copied without
permission.
[SOURCE: New York Times (C12), AUTHOR: Jon Pareles]
http://www.nytimes.com/library/tech/99/02/biztech/articles/09blue.html
=========
ALLIANCES
=========
TELECOM, NET FIRMS TO TAKE WEB WIRELESS
Issue: Internet
Washington Post reporter Mike Mills reports a series of announcements from
telecommunication and computer firms yesterday reflected "a common view in
the industry that the Web is going wireless and vice versa." Industry
officials saw the day's flurry of big-name alliances as a sign that wireless
data is finally poised to take off. Nextel Communications Inc., which plans
pocket phone service to business customers, said the company will work with
Netscape Communications Corp. to develop Internet software for its phones.
Customers would be able to use the phones for access to the Internet or
company databases, or to retrieve e-mail. The company plans to test the
service in six metropolitan areas this year. In other news from a computer
show in New Orleans, Microsoft Corp. announced a deal to test its Windows CE
operating system for consumer electronics devices in pocket phones operated
by British Telecommunications PLC. And Cisco Systems Inc. joined forces
with Motorola to develop products and standards for moving Internet data
over wireless networks.
[SOURCE: Washington Post (E1), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/business/daily/feb99/wireless9.htm
Motorola, Cisco Aim For New Standard
MOTOROLA, CISCO AIM FOR NEW STANDARD
Issue: Convergence/Internet Access
As reported yesterday, Motorola and Cisco announced a joint plan to provide
voice and data services over wireless telephones and other devices. The plan
would provide the wireless industry with a single standard for Internet
transmissions -- three are currently in use for wireless telephony. Airtouch
and Sprint lent support to the announcement. "You can't ignore it because of
the size of the players," said an industry analyst. "It does make sense.
Much, much more of Internet connectivity is going to be wireless."
[SOURCE: Chicago Tribune (Sec3, p.1), AUTHOR: Andrew Zajac]
http://chicagotribune.com/textversion/article/0,1492,ART-23132,00.html
SBC FORMS ALLIANCE WITH LONG DISTANCE FIRM
Issue: Long Distance
With the goal of becoming a full-service, end-to-end global provider -- with
a large national footprint -- SBC Communications announced a partnership
with Williams Communications that will give the phone giant a 10% stake in
the long distance company. "We've decided that we need to serve customers
within our region and outside it with long distance," said an SBC executive.
"We don't want to resell someone else's service, but we don't want to have
to build our own network either. We were looking for a long-distance partner
that would enable us to control our own products without building or buying
a network, and that's what the Williams deal does for us. This is
complementary to our national-local strategy as well, and that's a bonus."
[SOURCE: Chicago Tribune (Sec 3, p.2), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-23143,00.html
===============
TELECOM GENERAL
===============
PROGRESS REPORT: GROWTH AND COMPETITION IN
U.S. TELECOMMUNICATIONS 1993-1998
Issue: Competition
From the Press Release
http://www.ntia.doc.gov/ntiahome/press/cea20899pr.htm: Secretary of
Commerce William M. Daley and Council of Economic Advisors (CEA) Chair Janet
Yellen announced the findings of the CEA report on the growth and
competition in the telecommunications industry. The report documents the
positive impact that the telecommunications industry has had on our nation's
economy. The report also underscores the important role that President
Clinton and Vice President Gore's National Information Infrastructure (NII)
initiative played in promoting a telecommunications and information
infrastructure that is competitive, based on private investment, and that
benefits consumers. See also Sec Daley's remarks
http://www.ntia.doc.gov/ntiahome/speeches/ceaopa.htm
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/ceafinalrpt.htm
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SATELLITE
=========
IN SATELLITE-TV CARRIERS' FIGHT WITH NETWORKS, LAWMAKERS SCRAMBLE TO
FEND OFF PR DISASTER
Issue: Broadcasting/Satellite TV
More than 2 million households that receive network television via satellite
dishes are in danger of losing their signal, with Feb 28 as the first shutoff
date. Senate Commerce Committee Chairman John McCain (Arizona) introduced a
bill that would allow for satellite carriers to retransmit local networks
signals to local markets and allow some viewers who are now getting it
illegally to continue temporarily. Meanwhile, satellite carries Primetime 24
and Direct TV are encouraging consumers to write to
Congress and install rooftop antennas. To handle the overwhelming consumer
response, PrimeTime 24 has set up a hotline that connects callers to their
representatives: 1-888-SAVE MY TV. Representative Peter DeFazio (D-Oregon)
says, "People feel their TV service is a basic right." The law currently states
that satellite carriers aren't permitted to transmit local networks to
subscribers, with a small exception for those in remote areas whom can't get a
clear picture from a network station. Broadcasters argue that satellite
carriers are threatening their advertising revenues. Satellite TV industry
executives argue they need to offer network programs to compete against cable.
[SOURCE: Wall Street Journal (A24), AUTHOR: Kathy Chen]
========
INFOTECH
========
SURVEY FINDS HALF OF AMERICAN HOMES HAVE PCS
Issue: InfoTech
The PC home penetration rate continues to grow, reaching 50 percent in a
report from market research firm Dataquest that is out today. The 23
percent change in just three years is being driven by strong sales of
lower-priced personal computers and by increased computer performance.
"There is evidence that the first time buyers are coming from households in
the lower socioeconomic levels, however the increase in penetration is
across all segments," Van Baker of Dataquest said.
[SOURCE: San Jose Mercury News, AUTHOR:Reuters]
http://www.mercurycenter.com/svtech/news/breaking/merc/docs/067022.htm
2 NEW PRODUCTS WILL REACH OUT TO NOT-YET-PC MASSES
Issue: InfoTech
Dan Gillmor, the Mercury News Computing Editor, at a technology show
discovered two items which he says will "bring the benefits of computing and
communications to the currently non-computing, non-connected 50 percent or
more of American households." One was a "free PC." Pasadena-based
Free-PC.com is offering a decently, well-equipped Compaq PC that would cost
about $600 in a store today. The company says it will distribute an initial
10,000 units, eventually up to a million. Already people have been
clamoring on the company's website to get the machines. Users will get
no-cost Internet accounts, and agree to give up a substantial part of the
screen to advertising pitches. Free-PC will make its money from the
advertising and from a cut of revenues generated by customers who go
shopping electronically using the machines. The second compelling item at
the technology show was the Qubit, a highly portable simple computer for
online communication. The Qubit, which is not yet for sale, will consist of
several pieces: a tablet-like, magazine-sized touch screen with built-in
speakers and microphone; a charging cradle; a data receiver; and a wireless
keyboard. The price will be under $500, maybe in the $350 range. Gillmor
suggests that is too much and says companies may find a way to subsidize
these devices.
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
http://www.mercurycenter.com/svtech/columns/gillmor/docs/dg020999.htm
==========
NEWSPAPERS
==========
NEWSPAPERS TRY "PUBLIC JOURNALISM" TO EXPAND READERS
Issue: Journalism
Two years ago the News Observer in Raleigh North Carolina started inviting two
community members into their daily news meetings to help decide "what is news."
This effort is part of a "public journalism" movement, sparked by decreasing
circulation and claims that newspapers aren't covering what people are
interested in, says Michael Delli Carpini, chairman of the political science
department at Barnard College in New York and researcher of media and politics.
Some journalists argue that "public journalism" threatens the press's role of
watchdog. "Marshal Loeb, editor of Columbia Journalism Review says: This is not
a popularity contest. The primary role of the journalist is to report on
subjects that the audience didn't know they wanted to learn about." The News
Observer is owned by McClathy Co., Sacramento CA's eight largest chain, which
reports circulation is picking up: jumping from 164,300 at the end of last year
from 154,600 in 1995. Some community members report they feel their voices were
heard in daily meetings, others felt less effective. Prof. Delli Carpini
speculates that "sometimes this is all just a public-relations tool. Readers
either have no power or lack the professional judgment necessary to make real
decisions."
[SOURCE: Wall Street Journal (B4), AUTHOR: Lucinda Harper]
=========
ANTITRUST
=========
MICROSOFT EXECUTIVE ENDS THE DAY MOSTLY UNSCATHED
Issue: Antitrust
William Poole, senior director of business development for Microsoft's
Windows operating system, managed to hold his own under cross-examination
from government lawyer David Boies in the Microsoft antitrust trial Monday.
Unlike previous major company witnesses he "did not leave the courtroom with
his head on a platter." Poole oversaw the negotiation of contracts in which
Microsoft required Internet companies to limit business dealings with
Netscape Communications Corp. In exchange, Microsoft awarded the companies
advertising space on Window's opening desktop screen. Boies got Poole to
admit that the restrictive contracts with Intuit and others were not
standard practices for the company or the industry, as Poole had asserted in
his direct, written testimony.
[SOURCE: New York Times (C2), AUTHOR: Joel Brinkley]
http://www.nytimes.com/library/tech/99/02/biztech/articles/09soft.html
See also:
MICROSOFT OFFICER CONCEDES RESTRICTIONS
[SOURCE: Washington Post (E3), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm
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INTERNATIONAL
=============
NEW PHONE FEE IN GERMANY PLEASES NO ONE
Issue: Telephone
In an action that analysts predict will impede competition in Europe's
biggest phone market, Germany's Regulatory Agency for Telecommunication and
Post set high fees for companies to gain access to local German phone
networks. Deutsch Telekom AG may charge its rivals 25.40 marks ($14.60) a
month per customer. That is more than the 21.39 mark fee that Deutsch
Telekom charges its own customers, but is less than the 37.30 that Deutsch
Telekom had suggested. The telecommunications watchdog also set one-time
installation fees at 196 to 337 marks per customer, a large increase from
the 20.65 mark provisional fee now in effect. The new charges take effect
immediately and expire in March 2001. Although this decision marks the
first time a major European telecommunications market has set up a framework
to give rivals access to the "last mile" connection between a customer and
the system. The high fees, however, may make the plan useful only for
high-margin customers such as businesses.
[SOURCE: Wall Street Journal (A14), AUTHOR: William Boston]
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