Communications-related Headlines for 3/26/99

INTERNET
God Goes Online (WSJ)
AOL, EBay Team Up To Develop Auction Sites (WP)
Publishing Rights Dispute tells the Story of Internet's Reach (WSJ)
On the Web, It's Buyer Beware. But Where? (CyberTimes)
Net Changing Latin American Society, Online Media Chief Says (SJ Merc)
First Cyber-Parliament Warms up the French Senate (SJ Merc)

TELEVISION
Speech: Television in the Digital Age (FCC)
Pulling Plug on Public Access TV? (LATimes)

JOURNALISM
Serbs Expel Western Media (ChiTrib)
On the Electronic War Front, White House Goes Full Bore (WP)

FCC
McCain Wants to Revamp FCC (SJ Merc)
FCC's FY 2000 Budget Estimates

INTERNET

GOD GOES ONLINE
Issue: Religion
Just as the Internet has dramatically affected the way that many people buy
books, read the newspaper, and plan vacations, it has also had an impact
upon how some people worship. There has been a recent explosion of religious
sites online, "and it's expanding exponentially," says Charles Henderson of
MiningCo.com. The Pope has even appeared live online. Some critics, however,
feel that virtual rituals offered by Internet sites are not what religion is
about. According to Fran Maier, chancellor of the Catholic Archdiocese of
Denver, spiritual practices requires a physical presence. "You can't remove
the body from the act of worship," he says. Others say that Internet helps
keep them more connected with their faith. "If you're a little lazy, it makes
it easy for you to do a daily devotion," says Rick Steel, of Atlanta, about
his subscription to a daily email meditation service.
[SOURCE: Wall Street Journal (B6), AUTHOR: Patrick Reilly]
(http://wsj.com)

AOL, EBAY TEAM UP TO DEVELOP AUCTION SITES
Issue: Electronic Commerce
America Online gets revenue from new auction sites plus $75 million over the
next four years in a joint marketing and development deal with eBay
announced yesterday. As its part of the deal eBay will work with AOL to
develop auction sites for AOL's main service and each of its other online
brands, including CompuServe, the NetCenter Web site and the ICQ instant
messaging service. More importantly for eBay they get access to the 16
million subscribers that AOL has and the new sites will feed into their main
auction site. EBay is the top person-to-person online auction site with 2.1
million registered users. Each side has agreed to promote the other as part
of the arrangement. The deal does not include an equity investment in eBay
by AOL, although that possibility had been rumored.
[SOURCE: Washington Post (E1), AUTHOR: Shannon Henry]
(http://www.washingtonpost.com/wp-srv/business/feed/biztop922451965719.htm)
See also:
EBAY, AOL MAKE DEAL
[SOURCE: San Jose Mercury News, AUTHOR: Stephen Buel]
(http://www.mercurycenter.com/svtech/news/indepth/docs/aol032699.htm)
EBAY DEAL WITH AOL UNDERSCORES IMPORTANCE OF PLACEMENT
Issue: E-Commerce
Location. Location. Location. Like pitching and real estate, they appear to
be the top priorities for e-commerce advertising as well. On 4/24, eBay
(http://www.netscape.com), the online auction site, announced a $75 million
deal to secure prominent placement on multiple America Online services --
AOL.com, CompuServe, the chat service ICQ and the company's newest
acquisition, Netscape Communications Corp.'s NetCenter Web portal. And, of
course, eBay will be the official auction site on AOL for the next four
years. "This will bring us an enormous number of new users," said Steven
Westly, vice president for marketing and business development at eBay.
"It'll bring the next generation of users to eBay." Although other auction
sites do and will continue to be advertised via AOL, links to eBay will be
intergrated into AOL content. The deal "continues to confirm that AOL's real
estate is prime," said Marc Johnson, a senior analyst at Jupiter
Communications, a New York Internet research firm. Johnson noted the size of
the deal is "very substantial, even in Internet dollars." AOL boasts 16
million subscribers.
[SOURCE: CyberTimes, AUTHOR: Matt Richtel (mrichtel( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/03/cyber/articles/26ebay.html)

PUBLISHING RIGHTS DISPUTE TELLS THE STORY OF INTERNET'S REACH
Issue: Copyright
A best selling British book has sparked a controversy about traditional
marketing rights across national boarders. American book publisher
Scholastic owns the US rights to "Harry Potter and the Chamber of Secrets",
published this summer in Britain by Bloomsday books. While the American
release of the book isn't scheduled until this fall, US customers have
already begun purchasing the book from Amazon.com.uk. Scholastic is
concerned that American retailers, as well as customers, might not wait
for the US release to stock copies of the blockbuster book. Bloomsbury has
assured Scholastic that it will not sell the book to US based customers, but
Amazon has made no such assurance to the American publisher.
[SOURCE: Wall Street Journal (B6), AUTHOR: Patrick Reilly]
(http://wsj.com)

ON THE WEB, IT'S BUYER BEWARE. BUT WHERE?
Issue: E-Commerce/Legal Issues/International
An illustrative look at the potential legal problems of global, e-commerce.
When a buyer is in one country and the seller is in another, which nation's
laws prevail? The story also illustrates how two lawyers can quickly get out
of hand, so we'll spare you the details. See the URL below.
[SOURCE: CyberTimes, AUTHOR: Carl S. Kaplan (kaplanc( at )nytimes.com)]
(http://www.nytimes.com/yr/mo/day/tech/indexcyber.html)

NET CHANGING LATIN AMERICAN SOCIETY, ONLINE MEDIA CHIEF SAYS
Issue: Internet/International
"There's no going back," Fernando J. Espuelas told the Business Week
magazine's annual conference on Latin America yesterday. Espuelas, CEO of
StarMedia Network, Latin America's leading online media company, told the
Bal Harbour, FL audience that the Internet is bringing new options to
consumers long obliged to choose among limited, outdated brands at high
prices. He believes that it is also offering more varied information to
citizens, reducing the control of traditional power brokers and
democratizing politics. Internet users in Latin America now total 15 million
with one-third in Brazil alone. Espuelas suggested the totals will go to 35
million in two years and 100 million in five years.
[SOURCE: San Jose Mercury News, AUTHOR:]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/082464.htm)
For an example of Latin American business expansion, see also:
TELEFONICA PACT EXPANDS IBM REACH IN LATIN WORLD
[SOURCE: San Jose Mercury News, AUTHOR: Eric Auchard (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/278065l.htm)

FIRST CYBER-PARLIAMENT WARMS UP THE FRENCH SENATE
Issue: Internet/International
It was the major event of the second annual "Fete de l'Internet." It
featured 200 teenagers, cyber-activists, industrialists and journalists at
the French Senate House. And like any cyber-event these days, it was
available online for an unknown number of visitors using RealVideo. "Our
goal is to make the Internet festival the nationwide yearly happening for
France to progress towards the information age," said Bruno Oudet, an
economics professor who came up with the idea. The event featured the
drafting, revising, and passing laws to govern the Internet. With the
assembly divided into five fictional political parties, the majority voted
to restrict the liability to publishers of editorial content in Article 1 of
the bill. Article 2 assured the network will be used as a public service
providing equal access to all users. Article 3 that supported the French
socialist's government call for a 35-hour workweek was defeated. The group
passed an article forbidding anyone to appropriate the standards of the
Internet, whether navigators, operating systems or by proprietary software.
[SOURCE: San Jose Mercury News, AUTHOR: Francoise Derollepot]
(http://www.mercurycenter.com/svtech/news/indepth/docs/cerf032699.htm)

TELEVISION

SPEECH: TELEVISION IN THE DIGITAL AGE
Issue: Digital TV
Chairman Kennard's Remarks before the Variety/Schroders Media Conference in
New York (NY) [Summary]: Forty years ago in the famous "wasteland" speech,
the FCC Chairman Newt Minow called the time the Television Age -- and now
FCC Chairman Kennard agrees. He calls this the Digital Age noting that just
about every home appliance is now digital -- except the television. But this
is changing with the arrival of digital TV. But the old winning formula of
TV -- bringing visual entertainment to a passive audience -- must now change
to. Recent focus groups suggest that the killer app for digital TV will be
interactive data. "With digital, [television] will become an interactive
experience. It will be an avenue of endless exploration. Programming will
not just be
judged by its length, but by its depth -- by how many layers of additional
information and entertainment lie beneath it....Think about it. Everyone has
a television. So when that medium becomes digital and TV can be an on-ramp
to the Information Superhighway, it will serve as a foot-bridge -- for
millions of Americans -- across the digital divide." Two problem must still
be solved: 1) programmers must create compelling content to create a desire
for digital TV and 2) compatibility and interoperability. To #1 Chairman
Kennard says, "We need the courage to embrace the future. We need to
experiment with our business plans. And we need to seize the opportunity of
digital TV. And we at the FCC will give you the flexibility to do that." To
the second problem, Kennard challenges industry players to come to the
bargaining table in good faith. "My job as chairman of the FCC is to make
sure that consumers benefit from the digital age. I want all Americans --
and I mean all Americans -- to be able to use these amazing new technologies
to better educate their children, to be able to communicate with people
around the world, and to be able to learn the skills needed to survive and
thrive in the New Economy." The FCC would rather facilitate than regulate to
solve the questions facing digital TV. The Chairman quotes Edward R.
Murrow to summarize the challenge: "This instrument can teach, it can
illuminate, and yes it can inspire. But it can do so only to the extent that
humans are determined to use it to those ends. Otherwise it is nothing but
wires and lights in a box."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/spwek913.html)

PULLING PLUG ON PUBLIC ACCESS TV?
Issue: Cable
Los Angeles is preparing to renegotiate the city's franchise agreements with
cable operators for the first time since 1984 and are considering dropping
requirements for public access programming. PCs, the Internet and other new
technologies offer free speech opportunities that were not available in '84
and a city-wide public access channel's public access programming has been
dropped after receiving criticism for being too risque. "We went all
educational--we had to save the channel. And that's the truth," said Dyke
Redmond, director of the Los Angeles Cable Television Access Corp. "The
environment is shifting," said Perry Parks, a vice president of cable
company Media One. "Public access has become a challenge." Parks thinks the
Internet will replace cable public access. Federal law doesn't require that
cable companies offer public access channels, Ed Perez, an assistant city
attorney who works with the Information Technology Agency, said Wednesday.
"It's never been mandatory. It's something that can be negotiated."
[SOURCE: Los Angeles Times (3/25), AUTHOR: Bob Pool]
(http://www.latimes.com/HOME/NEWS/METRO/t000026763.html)
[Thanks to reader Jamie Kravitz for sending this story our way]

JOURNALISM

SERBS EXPEL WESTERN MEDIA
Issue: Censorship
"These journalists had spurred aggressive action by NATO forces against our
country and were misinforming the world public on the current situation in
Yugoslavia," according to a statement from the Yugoslav Information
Ministry. Yesterday, the Serbian government expelled journalists from the
US, Britain, France, Germany and other nations involved with the NATO
strikes. Some of the journalists have been interrogated, threatened and
harassed by Serbian officials. The government claims that their reporting
"strengthened the aggressive acts of NATO forces aimed at the violent
destruction of...the territorial integrity of Serbia and Yugoslavia."
[SOURCE: Chicago Tribune (Sec 1, p.8), AUTHOR: Tim Jones]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9903260115,00.html)

ON THE ELECTRONIC WAR FRONT, WHITE HOUSE GOES FULL BORE
Issue: Journalism/Politics
The White House used the media to get its message across to defend its
airstrikes in Yugoslavia. Defense Secretary William S. Cohen was the point
man appearing on five major morning TV programs, two major radio networks
and evening appearances on PBS's "Newshour," CNN's "Larry King Live," and
ABC's "Nightline." Other administration officials, including Secretary of
State Madeline Albright and national security advisor Sandy Berger briefed
reporters and carefully adhered to the rationales and goals that Clinton
laid out for the military operation. Robert Lichter of the Center for Media
and Public Affairs said that "the Administration has gotten more positive
coverage on the evening news shows on the bombing in Yugoslavia than they
have on any previous American military action," including missions in Iraq,
Bosnia, and Haiti. After appearing in a televised address on Wednesday
night, President Clinton was out of the reach of journalists on Thursday
except for a White House photo opportunity where he took a few questions
regarding Kosovo.
[SOURCE: Washington Post (A24), AUTHOR: Charles Babington]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-03/26/051l-032699-idx.html)

FCC

MCCAIN WANTS TO REVAMP FCC
Issue: FCC
Sen. John McCain (R-AZ) said Thursday he will offer legislation to "refocus"
the Federal Communications Commission. The senator, who is chairman of the
Senate Commerce Committee that has oversight of the FCC, did not offer
details, but he did say that he would hold a hearing on April 14 and offer
his solutions at that time. Sen. McCain and some other lawmakers have
accused the FCC of being too regulatory. He and Rep. Billy Tauzin (R-LA),
who chairs the House Commerce Committee's telecommunications panel, want to
limit the FCC's ability to review mergers involving telecommunications
companies. Yesterday he criticized the FCC for not removing regulations so
the nation's Bell companies can offer high speed Internet and data services
across local calling boundaries, which technically constitutes a
long-distance service.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/027037.htm)

FCC'S FY 2000 BUDGET ESTIMATES
Issue: Budget Issues
Chairman Kennard's Statement before the United States Senate Subcommittee on
Commerce, Justice, State, and the Judiciary, Committee on Appropriations, on
the Federal Communications Commission's Fiscal Year 2000 Budget Estimates.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/stwek917.html)

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...and we're outta here. It's Friday; enjoy!

Rest well, Mr. Ripken,