Communications-related Headlines for 3/19/02

BROADBAND
Groups Plan Lawsuit Against FCC Cable Modem Ruling (NB)
Broadband Providers Find Formula To Lure Asian Surfers: Cheap Plans
(WSJ)

INTERNET
Net Oversight Group Sued By Member (USA)
Pay for Online Content? (WIRED)
Pa. Law Requires ISPs To Block Child Pornography (USA)

EDTECH
Reading Reaps Rewards (WP)

DIGITAL DIVIDE
The Many, The Skeptical, The Folks Without PC's (NYT)

BROADBAND

GROUPS PLAN LAWSUIT AGAINST FCC CABLE MODEM RULING
Issue: Broadband
In response to last week's FCC ruling exempting cable ISPs from being
required to open their networks to competitors, several consumer groups and
Internet service providers are considering a lawsuit. Although the groups
are considering other options, Media Access Project Deputy Director Cheryl
Leanza said that a lawsuit protesting the FCC ruling is highly likely. Media
Access Project is joined by the Center for Digital Democracy, the Consumer
Federation of America and some unidentified ISPs. The FCCs decision
classified cable ISPs as "information services" rather than
"telecommunications services." Telecom services are required by law to offer
network access to competitors. Information services are not required to open
their networks. FCC Chairman Michael Powell spoke in favor of the ruling,
noting that the FCC needs to spur more broadband investment. Those against
the ruling, including FCC Commissioner Michael Copps, argue that the move
would benefit dominant providers, create great uncertainty in the broadband
market and limit consumer choice.
[SOURCE: Newsbytes; AUTHOR: Robert MacMillan]
(http://www.newsbytes.com/news/02/175267.html)

BROADBAND PROVIDERS FIND FORMULA TO LURE ASIAN SURFERS: CHEAP PLANS
Issue: Broadband
A period of tremendous growth for Asian broadband providers has been the
result of low monthly fees for consumers. According to Pyramid research, a
$25.38 monthly fee from Pacific Century Cyberworks, Ltd. resulted in a 75%
jump in broadband subscriptions. Softbank Corp. started a price battle by
cutting prices in half for their Yahoo Broadband service. Today, each month
more than 300,000 new subscribers sign up in Japan. Two years ago in South
Korea prices stabilized at $27. Today 55% of South Korean households have
broadband access. While the sharp rise in subscribers is helping broadband
providers reach profitability, the earnings are slim. Andrew Chetham, an
analyst at Gartner Group in Hong Kong said, " Access providers are facing a
problem. They now have lots of broadband subscribers. But what do you do
next?" John Barrett, senior analyst at Pyramid agrees, "It'll be very
challenging for them to make money on just access alone. Revenues lie in the
content."
[SOURCE: Wall Street Journal, AUTHOR: Suh Kyung Yoon]
(http://online.wsj.com/article/0,,SB1016467429562490400,00.html?mod=telecomm
unications%5Fprimary%5Fhs)
(Requires subscription)

INTERNET

NET OVERSIGHT GROUP SUED BY MEMBER
Issue: Internet
Karl Auerbach, a director of the Internet Corporation for Assigned Names and
Numbers (ICANN) filed a lawsuit against ICANN claiming he has been denied
access to records related to travel, payroll, and other day-to-day
operations. Auerbach has accused the ICANN staff of not complying with
California state law and stated, "ICANN management has denied me the tools I
need to exercise independent judgment and fulfill my duties as director."
Auerbach is one of the few ICANN directors chosen by direct elections and
has been a vocal critic of the organization. The Electronic Frontier
Foundation will represent Auerbach in the lawsuit.
[SOURCE: USA Today, AUTHOR: Reuters]
(http://www.usatoday.com/life/cyber/tech/2002/03/18/icann-sued.htm)

Pa. LAW REQUIRES ISPs TO BLOCK CHILD PORNOGRAPHY
Issue: Internet
A new Pennsylvania law will require Internet Service Providers to block
access to child pornography for all Pennsylvania customers. Under the law,
the state attorney general's office will send ISPs a list of Web sites to
block. Believed to be the first of its kind, the law carries penalties of
$5000 for first offenders, $20,000 for second offenders, and increases to
$30,000 and up to 7 years in prison for third time offenders. The ACLU has
given the law a seal of approval and Larry Frankel, the chapter's executive
director stated that someone whose material is cut off could seek a court
hearing. ISPs consider the law impractical and point out that they are
unable to control content. "Once you use my service to get on the Internet,
I have no way of controlling where you go and what you see", said Sue
Ashdown, director of the American Internet Service Provider Association.
Kevin Harley, a spokesman for the state attorney general's office has said
they will be expanding the child sexual exploitation unit.
[SOURCE:USA Today, AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/2002/03/18/isp-law.htm)

PAY FOR ONLINE CONTENT?
Issue: Internet
Online publishing and entertainment firms hoping to start charging for
online content may be in for a disappointment. A new Jupiter Media Matrix
survey reveals that 70% of online adults surveyed can't understand why
anyone would pay for any online content. "If anything," says Jupiter Media
Matrix analyst David Card, "people are less willing to pay than they were 18
months ago." When respondents were asked what they would be willing to pay
for if free content vanished, 63 percent replied "nothing." No category drew
more than single-digit responses from those willing to spend. There are
successful online subscription services (Sony Online and the Wall Street
Journal, for example), but in order to make money, as Martin Niseholtz, CEO
of The New York Times Digital suggests, Internet content providers will have
to find a blend of paid products and free, advertiser-supported fare.
[SOURCE: Wired News; AUTHOR: Noah Shachtman]
(http://www.wired.com/news/ebiz/0,1272,51146,00.html)

EDTECH
READING REAPS REWARDS
Issue: EdTech
Schools across the nation are turning to computer programs to help turn a
generation of TV viewers into avid readers. Programs such as Scholastic
Reading Counts! and Accelerated Reader motivate reading by assigning points
to books. Students select books to read and then take comprehension tests on
computer to earn their points. Although University of Maryland human
development professor John T. Guthrie says that there is little research
indicating whether such incentive programs have more success than other
methods, "there are cases where kids start reading for points and get hooked
on a book." Some parents, and students, question point assignments based on
a book's length rather than on the strength of the prose. Nevertheless, many
educators and parents seem to feel that, if carefully supervised, the point
system poses no harm and can be a very beneficial tool in producing active
readers.
[SOURCE: Washington Post, AUTHOR: Jay Mathews]
(http://www.washtech.com/news/software/15726-1.html)

DIGITAL DIVIDE

THE MANY, THE SKEPTICAL, THE FOLKS WITHOUT PC'S
Issue: Digital Divide
Personal computer makers made some profits during the holidays by
drastically reducing prices and offering free extras. However, a new survey
suggests that current marketing efforts are continuing to miss the 39% of
U.S. households that do not own a PC. In a semiannual survey, Odyssey, a
market research firm, polled 2,500 households and found that consumers were
not so concerned about computer prices but where confused by technology and
often did not feel a particular reason to own a PC. Sean Baenen, a Managing
director at Odyssey, used this data to point out the flaw in computer makers
marketing strategies. "All the data points to the fact that PC
manufacturers have been trying to solve problems that most consumers don't
have - price, and more technology for the price." After doubling from 1994
to 2000, the penetration rate of PC's has leveled off at sixty- one percent
of the nation's households. PC owners are keeping them longer with only 9
percent saying they were "extremely likely" to buy a computer in the next
six months. Mr. Baenen said of computer makers "If they're betting on
upgrades, they're going to be in trouble."
[SOURCE: New York Times, AUTHOR: Chris Gaither]
(http://www.nytimes.com/2002/03/18/technology/18PENE.html?ex=1017480367&ei=1
&en=da6d6e85f15e77cd)

--------------------------------------------------------------