INTERNET
Electronic Tax Filing Service Crashes at Crunch Time (WP)
Senate Wants FCC to Study Broadband (WP)
Internet Access and the Consumer (Senate)
Internet Providers' Demands On High-Speed
Data Rejected (NYT)
Northern Telecom Plays Down Phone Roots,
Embraces 'I Word' (WSJ)
EDTECH
Pencils Down: End of Paper Test Raises Questions
BROADCASTING
Regulatory Classification of Low-Power Television Licensees (House)
TELEPHONE REGULATION
Truth-in-Billing (NTIA)
JOURNALISM
High-Tech Heads Discuss News Shift (SJ Merc)
INFOTECH
With Free PCs, You Get What You Pay For (WSJ)
EMPLOYMENT/ECONOMICS
America Online Is Facing Challenge Over Free Labor (NYT)
Computer Age Gains Respect of Economists (NYT)
INTERNET
ELECTRONIC TAX FILING SERVICE CRASHES AT CRUNCH TIME
Issue: Technology
People intent on working on their income tax forms online Tuesday got a
surprise when both Intuit's TurboTax and WebTurboTax were unavailable for
about 14 hours. Intuit officials said the company, anticipating heavy use
this week, backed up their preparation services Monday night. As a result
the service was not available until 12:30 PM Tuesday. The popular services
had filed 1.2 million tax returns through their online services as of last
Thursday. Electronic-filing has grown rapidly this year, encouraged by the
Internal Revenue Service. Companies like Intuit have attracted customers by
promising faster refunds.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/turbotax13.htm)
SENATE WANTS FCC TO STUDY BROADBAND
Issue: Broadband
In a Senate hearing yesterday Senator John McCain (R-AZ) rejected calls from
some Internet service providers and America Online for immediate legislation
to stop cable services from offering exclusive high-speed Internet services
via cable lines. Sen. McCain, chairman of the Senate Commerce Committee,
said he would soon introduce legislation with bipartisan backing mandating a
study by the Federal Communications Commission and the Commerce Department's
National Telecommunications and Information Administration. Sen. McCain said
the study would also cover the extent to which high-speed services were
being made available in rural and low income areas. The FCC in February
declined to conduct a formal study of cable broadband services but said it
would continue to monitor the evolving marketplace. Subscribers choosing
Internet services from cable companies do not have a choice of Internet
service providers and must accept service providers owned by the cable
companies. AOL chairman Steve Case told the Senators, "I oppose regulation
of the Internet but the broadband infrastructures on which the Internet
rests -- whether cable, telephone or other -- must be open." However, on
Internet connectivity using cable, Cox Communications president James Robbins
said, "Government regulation will impede its progress, not help its progress."
[SOURCE: Washington Post (Online), AUTHOR: Reuters]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/cableinternet13
.htm)
See also:
COMMUNICATIONS `ARCHITECTURE' DEBATED IN SENATE PANEL
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/fast14.htm)
INTERNET ACCESS AND THE CONSUMER
Issue: Internet Access/Competition
The Senate Commerce Committee held a hearing on how to facilitate the
deployment of faster, higher-speed Internet access services. URL below
offers a link to Chairman John McCain's (R-AZ) opening statement as well PDF
versions of the witness' testimony (except AOL's Steve Case). Witnesses:
Mr. James Robbins, President and COO, Cox Communications, Inc.; Mr. Charles
Brewer, CEO, Mindspring Enterprises, Inc.; Mr. William L. Schrader, Chairman
and CEO, PSINet Inc.; Mr. Solomon Trujillo, President and CEO, US West; and
Mr. Steve Case, Chairman, America Online. Sen McCain said the hearing would
address two questions: 1) what problems might result from the fact that
cable modem service only gives its subscribers *limited* choice in accessing
a high-speed Internet service provider? 2) what problems might result from
the fact that 98 percent of residential consumers have *no* high-speed
Internet access *at all*, and that rural and low-income consumers may get it
significantly later than their urban, higher-income counterparts? Sen
McCain's closing statement reads (in part): The Commerce Committee will meet
again on April 21 to develop more insight on these issues. After that
hearing, I will introduce legislation that will require NTIA, in
collaboration with the FCC, to analyze the facts and the issues involved in
the ongoing deployment of advanced broadband data networks, especially in
rural and low-income areas, and jointly report their findings to us. To
realize our full potential as individuals and as a nation, we must assure
that the benefits of advanced broadband technology are available to
everyone. I intend to do everything I can to make sure that the promise of
advanced telecommunications becomes a reality for all of us.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/hearings/hearings.htm)
See also:
INTERNET PROVIDERS' DEMANDS ON HIGH-SPEED DATA REJECTED
Issue: Broadband/Regulation
On Tuesday at a hearing of Senate Commerce Committee, Senator McCain (R-AZ),
rejected AOL chief executive, Stephen M. Chase's plea to force cable companies
to "open their networks to competitors for high-speed data, or broadband
services." McCain answered the plea instead by announcing a plan to file a
proposal to require the Commerce Department and the Federal Communication
Commission to "analyze the facts and issues on the deployment of broadband
technology." In February the FCC said they didn't want to launch a formal study
but that they would monitor the broadband market. McCain says his biggest
concern is rural communities that may not be attractive to investors. AOL is
concerned that cable companies will leave them behind as consumers move their
telephone wire Internet connections to high-speed connections offered. Senator
Hollings criticized Baby Bells for holding 98 percent of the access and not
implementing the Telecommunications Act of 1996. Solomon D. Trujillo, president
of US West, responded by saying that FCC rules are too "cumbersome" and delay
the process. In addition, competitors aren't developing high-speed access
aren't serving rural areas. William Schrader of PSINet says, an Internet
service provider says that Bell companies say they would move to rural areas if
rules were relaxed. He says this argument doesn't make sense because the
fastest-growing type of telephone connection, digital subscriber lines (DSL)
only for customers 18,000 feet from the central phone office.
[SOURCE: New York Times (C26), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/14broad.html)
NORTHERN TELECOM PLAYS DOWN PHONE ROOTS, EMBRACES 'I WORD'
Issue: Telephony/Advertising
Northern Telecom is touting a new image and a new name. Nortel has launched an
advertising campaign that emphasizes its role in the Internet business rather
than the telephone business. The ads are targeted at decision makers who would
be likely to purchase corporate equipment, but reach a slightly broader
audience. The ads feature a 50-something CEO giving a speech that is really the
lyrics of the Beatle's song, "Come Together." The ads have aired during
"60-minutes," NBA games, and Sunday morning political talk shows. Nortel's ads
are the latest in a trend among phone companies to allude to Internet chic. A
recent ad for long distance company, Quest asks customers to "ride the light,"
instead of picking up the phone. Nortel's use of Internet imagery is warranted,
somewhat. It uses technology called Internet Protocol, (or IP) that, "enables
phone companies to transport voice, video and data over a single network."
Nortel says the mass-marketed ads help build value for the company, despite the
fact that most viewers aren't likely to buy Nortel products. The majority of
Nortel's profits come from selling to telephone companies and businesses.
[SOURCE: Wall Street Journal (B2), AUTHOR: Stephanie N. Mehta]
(http://wsj.com/)
See also:
TAKEOVER SPREE IN NETWORKING
[SOURCE: San Jose Mercury News, AUTHOR: Monua Janah]
(http://www.mercurycenter.com/svtech/news/indepth/docs/cisco041499.htm)
CISCO, ERICSSON AND NORTEL MAKE DEALS TO EXPAND REACH
[SOURCE: New York Times (C2), AUTHOR: Seth Schihesel]
http://www.nytimes.com/library/tech/99/04/biztech/articles/14cisco.html
EDTECH
PENCILS DOWN: END OF PAPER TEST RAISES QUESTIONS
Issue: Education Technology
The Educational Testing Service officials say "no more" to paper-and-pencil
versions of the Graduate Record Examination. US test takers will now have to
take the exam on a computer. As technology improves, ETS officials believe,
computer examinations will be increasingly more sophisticated and better
able to assess skills than paper versions. But the change has sparked
opposition. Opponents say the new tests raise concerns that need to be
addressed, such as whether some people do better on paper versions, and that
the testing service should, at least for now, continue to offer paper as an
option. Last year, when both versions were offered, opponents note about
half the test-takers opted for the paper test. The computer format is also
an issue since it is a "computer-adaptive test," meaning that the computer
adapts its questions to what it perceives to be the test-taker's ability. It
does not allow test takers to skip a question and come back to it or
underline important points in a reading passage. ETS officials say there are
several good reasons to do it on computer: students get their scores
immediately, the computer test does not take as long as the paper test, and
the tests can be given more often. The Graduate Management Admission Test
has been offered only on computer for two years, and major licensing exams
in nursing and architecture are now also paperless. The S.A.T., sponsored by
the College Board, has a pilot project started but has no immediate plans to
move to computers.
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/04/cyber/education/14education.html)
BROADCASTING
REGULATORY CLASSIFICATION OF LOW-POWER TELEVISION LICENSEES
Issue: Broadcasting
Hearing summary on H.R. 486, the Community Broadcasters Protection Act
intended to preserve low-power television stations that provide substantial
local programming to small communities throughout the nation. Witnesses at
the hearing: Mr. Roy J. Stewart, Federal Communications Commission; Dr.
Arthur Stamler, WAZT-LPTV; Mr. Michael Sullivan, Community Broadcasters
Association; Mr. Jim May, National Association of Broadcasters; Mr. George
E. DeVault, Holston Valley Broadcasting Corporation; and Mr. Ron Bruno,
WBGN-TV. URL below provides links to Mr. Stewart's and Mr. May's comments as
well as remarks by Rep Thomas Bliley (R-VA), Chairman of the House Commerce
Committee.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/Witnesses?OpenView&StartK
ey=9D2C64D4243BB3F58525674C007B0B9A)
TELEPHONE REGULATION
TRUTH-IN-BILLING
Issue: Telephone Billing
NTIA filed a letter with the FCC in CC Docket No. 98-170 expressing support
for the goals of the Commission's Truth-in-Billing and Billing Format
proceeding: The National Telecommunications and Information Administration
(NTIA) supports the Commission's efforts to ensure that
customers know exactly what they are paying for. This information is
important and necessary to make competition work. Consumers will be better
equipped to make informed buying choices in an increasingly competitive
market if they can easily determine what services they receive, from whom,
and at what price. Equally important, clear and simple bills should help
consumers to detect inappropriate charges resulting from either billing
error or fraud. Consumers, for example, should have sufficient information
to detect slamming practices, involving an unauthorized switch to a new long
distance carrier, and to detect cramming practices, involving charges for
services not ordered or received. We also urge the Commission to expedite
enforcement actions against carriers that engage in slamming and cramming.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/fccfilings/041299billing.htm)
JOURNALISM
HIGH-TECH HEADS DISCUSS NEWS SHIFT
Issue: Content
High-tech leaders Tuesday told newspaper executives they are going to move
their content onto the Internet, make those stories interactive, and improve
in-depth coverage in their print versions. Traditional newspaper journalism
has shifted in recent years to the World Wide Web to compete with Internet
news sources that deliver information as it breaks rather than waiting for
the morning or afternoon edition. "I think you have to realize that the
Internet is a whole new medium, not an extension of what you have been
doing," said Cox Interactive Media vice president Hilary Goodall. The
discussion came in San Francisco at the annual convention of the American
Society of Newspaper Editors.
[SOURCE: San Jose Mercury News, AUTHOR: Martha Mendoza (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/333006l.htm)
INFOTECH
WITH FREE PCS, YOU GET WHAT YOU PAY FOR
Issue: InfoTech
Free PCs aren't really free. As competition surges among the new trend over the
last two months, companies like Gobi, DirectWeb, InterSquid.com and the first
one out -- Free PC are offering a number of deals. InternetSquid, Gobi and
DirectWeb charge a monthly service fee in exchange for a "midrange PC"
(33-megahertz processor, four-gigabyte hard drive and 32 megabytes of memory).
Intersquid and Gobi require customers to sign a lengthy lease of the PC and
charges a hefty cancellation fee. DirectWeb allows month-to-month payment, but
requires a $150 deposit. The companies really differ on their exploitation of
consumer's demographic information. While some customers say it is a way for
people without a lot of money to have a computer, companies may be targeting
higher income folks who are attractive to advertisers. For example, Free PC
charges no monthly fee and cancellation is simple with no charge. But, in order
to get the service customers must fill out a survey, describing income,
hobbies, and other information advertisers like to know. Also, Free-PC selected
its first 10,000 customers, which may be a way to target higher income
customers. DirectWeb offers a 3 tiered service. You can pay $19.95 a month or
$49.95 a month and for different levels of service. Gobi's service is $25.99 a
month with a promise of upgrading customer's technology -- including eventually
replacing standard modems with cable.
[SOURCE: Wall Street Journal (B1), AUTHOR: David P. Hamilton]
(http://wsj.com/)
EMPLOYMENT/ECONOMICS
AMERICA ONLINE IS FACING CHALLENGE OVER FREE LABOR
Issue: Jobs
America Online has long depended on the kindness of volunteer "community
leaders" to perform a range of tasks including answering questions,
supervising chats, and enforcing AOL rules. These volunteers, of which there
currently are 10,000, receive free service as payment for their commitment
of a minimum of four hours of work per week. Seven former AOL volunteers are
now asking the labor department to determine if the company's practices are in
violation of the Federal Fair Labor Standards Act which requires companies
to compensate people for time spent on job-related activities that benefit
the employer.
[SOURCE: New York Times (A16), AUTHOR: Lisa Naploi]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/14aol.html)
COMPUTER AGE GAINS RESPECT OF ECONOMISTS
Issue: Economy
While the impact of the Information Revolution can be felt in workplaces and
classrooms -- from Main Street to Wall Street, scholars are still debating
the effect of technology on the economy. Through the early 1990s
productivity was nearly stagnate, leading top economist to question
technologies contribution to the economy. Starting around 1996, however,
there was a dramatic upswing in productivity growth, which nearly doubled
pace from the rates of the past two decades. Daniel Sichel, an economist at
the Federal Reserve wrote in a recent article that the nation's improved
productivity performance, is "raising the possibility that businesses are
finally reaping the benefits of information technology." The answer to the
question of whether technology is responsible for the nation's recent streak
of high growth and low inflation could have significant policy
ramifications. A problem arises from increasing difficulty in actually
assessing the impact of computer and communications on the output of the
nation's booming service sector. Erik Brynjolfsson, an associate professor
at the MIT Sloan School of Management, explains that the economic value of
speed, quality improvements, customer service and new products are often not
captured by government statistics. "We need a broader definition of output
in this new economy, which goes beyond the industrial-era concept of widgets
coming off the assembly line."
[New York Times (A1), AUTHOR: Steve Lohr]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/14tech.html)
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