EDTECH
Division Over Internet Learning (SJ Merc)
Internet Courses Earn Poor Marks (Chicago Tribune)
Textbook Publishers Extend Lessons Online (CyberTimes)
INTERNET
Web Sites for White House Race Show Lessons Learned (CyberTimes)
Portals Slow in Future Online Sales (WP)
BMG and Universal Said to Form Internet Venture (NYT)
At Home To Bring Cable Internet Access To Japan In Venture
With Sumitomo (WSJ)
MERGERS
FCC Chief Asking the Right Question (Chicago Tribune)
Kennard's Speed Bump May Reduce Merger Roadkill (Chicago Tribune)
Murdoch to Buy Control of FX, Sports Networks (WP)
TELEPHONY
AT&T To Change A $3 Minimum For Long Distance (WSJ)
Bell Atlantic Is Set To Fine In New York On Long Distance (WSJ)
FCC/REGULATION
Broadcasters Blast New Scrutiny Of Radio (WSJ)
From 'Dr. Dissent' Even A 'Yes' Vote Can Sound Like 'No' (WSJ)
LEGAL ISSUES
Lawsuit Claims MCI Discriminates (WP)
INFOTECH
Intel Joins Race For Home Networks (SJ Merc)
JOURNALISM
Banana Journalism (NYT)
EDTECH
DIVISION OVER INTERNET LEARNING
Issue: Education
A pair of reports being released today question whether a seat in front of a
computer for education through the Internet is as good as a seat in a
college classroom. The College Board warns in its report that Internet
courses could hinder the progress of poor and minority students who arrive
at college with less exposure than white or more-affluent students. Larry F.
Gladieux, a College Board researcher, notes that computers are in 75% of
households with incomes over $75,000, but just under 20% of households
making less than $15,000 have computers or daily access. The second report,
by the Institute for Higher Education Policy, says colleges still lack
enough knowledge about Internet-based education to justify its rapid growth.
Areas that need additional study include information on the high dropout
rate for Internet-based learners, 32% compared with 4% for classroom
students, according to one report. Another area that remains in question is
whether students do better from Internet instruction alone or from a mix of
Internet and classroom learning. At present 750,000 students are involved in
26,000 online courses. Having a wholly online school, Jones International
University of Denver, accredited is one area cited as progress.
[SOURCE: San Jose Mercury News, AUTHOR: Anjetta McQueen]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/310498l.htm)
See also
INTERNET COURSES EARN POOR MARKS
Issue: Ed Tech
Two reports to be released today caution that there is little proof that
online courses are effective. The reports question how courses are
evaluated, their costs, their high drop-out rates, and issues of access to
technology. Larry Gladieux, a senior researcher at the College Board, and
Jamie Merisotis, president of the Institute for Higher Education Policy,
both warn that the "mad dash" to get courses online should be slowed to
allow better thinking and understanding about the effects of such moves.
Observers say the Institute for Higher Education Policy, funded by the
American Federation of Teachers and the National Education Association,
signals the concerns of faculty over job security. "There is a considerable
amount of fear within faculties that on-line education is a way to get rid
of the faculty," said Steve
Crow, executive director of the North Central Association, the accrediting
body for more than 900 colleges and universities. "But it is my own personal
opinion that distance education will not get rid of the faculty. It will,
however, restructure how faculty do their work."
[SOURCE: Chicago Tribune (Sec 1, p.6), AUTHOR: Patrice Jones & Cindy Schreuder]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904070163,00.html)
TEXTBOOK PUBLISHERS EXTEND LESSONS ONLINE
Issue: Publishing/Education
In a new trend in the classrooms involves the use of companion Web sites to
accompany textbook material. An association of science teachers have started
a project, called SciLinks, that uses the Internet to enhance and update
science texts. Publishers contract with the Arlington (VA)-based group, which
then searches the Web for sites that illustrate lessons in the books. Some of
the largest textbook publishers, including Glencoe/McGraw-Hill, Prentice
Hall, and Houghton Mifflin, have been constructing their own Web sites to
supplement printed textbook material. One of the driving forces behind this
trend is publishers' desire to keep books up-to-date in a rapidly changing
world. "It can keep current information alive for students," said William A.
Talkington, president and chief executive officer of Holt, Rinehart and
Winston.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/04/cyber/education/07education.html)
INTERNET
WEB SITES FOR WHITE HOUSE RACE SHOW LESSONS LEARNED
Issue: Democracy and Technology
Unveiled yesterday in Washington (DC), Vice President Al Gore's new campaign
Web site urges voters to "Get Involved." As with many recent candidates,
Vice President Gore apparently has high hopes for the possibilities of
online outreach. Many political analysts view the Internet as an exciting
opportunity for voters to get more involved with candidates and campaigns.
"The Internet is going to reconnect citizens to the process," said Rick
Segal, Steve Forbes' Internet strategist. "We're going to get people in the
game." While there is great hope for the Internet to restore some of the
individual contact with voters that has been lost in the era of television
campaigning, the true power of the medium is still unknown. "We don't know
how well any of these will work until we know how many volunteers they're
getting and how much money they're raising online," said Michael Cornfield
research director of the Democracy Online Project financed by the Pew
Research Center, which plans to measure the effectiveness of campaigning
online. [As part of the Democracy Online Project, the Benton Foundation's
Neustadt Center will be testing the Internet as a tool for civic involvement
among entire communities]
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/07candidate.html)
PORTALS SLOW IN FUTURE ONLINE SALES
Issue: Electronic Commerce
Retailers should expect electronic commerce from Internet entry points,
known as portals, to account for only 20% of online retail revenues by 2002.
A new study by Internet research firm Jupiter Communications says this
figure is up slightly from a projected 18% in 1999. Jupiter says the portal
sites will generate $2.4 billion out of $13 billion in online sales this
year. By 2002 those figures should rise to $8.7 billion and $43.7 billion
respectively. Because of their attraction as destination sites, portals have
cut expensive multi-year "tenancy" deals with online merchants and have
been popular merger targets in recent months. Jupiter's survey, based on
interviews with 36 Internet retailing executives, concludes portals are
helping to expose company sites to a wide audience, but more than 60% of
respondents noted that only one-third of the sales that result can be
attributed to the portal deals. Nearly all of the merchants will reevaluate
their portal deals when renewal time approaches. Bob Davis, president of the
portal Lycos, said, "Virtually anyone who has built a successful retail site
has done it through a portal one way or another."
[SOURCE: Washington Post (Online), AUTHOR: Rachel Beck (Associated Press)]
(http://www.washingtonpost.com/wp-srv/WAPO/19990406/V000336-040699-idx.html)
BMG AND UNIVERSAL SAID TO FORM INTERNET VENTURE
Issue: Internet
The nation's two largest record companies are expected to announce a joint
Internet venture. Universal Music and BMG plan to build out a series of
sites that will promote and sell music. This move further confirms the
Internet's new role in pitching music to the masses, although it only
accounted for 2 percent of CDs sold last year. The deal also sets the stage
for the recording industry to sell music that can be directly downloaded to
people's computers. The industry is currently concerned about people using
MP3 technology to illegally download songs.
[SOURCE: New York Times (C1), AUTHOR: Saul Hansell]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/07net.html)
AT HOME TO BRING CABLE INTERNET ACCESS TO JAPAN IN VENTURE WITH SUMITOMO
Issue: Internet/Cable/International
AT Home plans to announce a deal with two companies to offer cable Internet
access service to Japan. The deal is eased by the TCI/AT&T recent merger. The
deal will set up a subsidiary that will be partly owned by Japanese cable
operator, Jupiter Telecommunications. Jupiter, founded in 1995, is a joint
venture between Sumitomo (of Japan) and Liberty Media, a spinoff of TCI which
owns part of AT Home, which was recently merged with AT&T. "This is a very big
deal from our point of view, since we expect international services to be huge
areas of growth even though right now much of the world is still well behind
the U.S. in terms of cable deployment," says John O'Farrell, At Home's senior
vice president. He says Japan's traditional dial-up Internet use is growing
quickly. At Home reports that Japan's Ministry of Post and Telecommunications
says Japanese Internet use doubled in the past year to reach 11%. Big local
companies dominate the Japanese market, but U.S. companies like America Online,
Excite, and Yahoo have moved into the market.
[SOURCE: Wall Street Journal (B7), AUTHOR: Kara Swisher]
(http://wsj.com/)
MERGERS
FCC CHIEF ASKING THE RIGHT QUESTION
Issue: Mergers
[Editorial] The proposed SBC-Ameritech merger has been making its way
through various regulatory bodies, but in letter sent by Chairman Kennard to
SBC and Ameritech executives on April 1
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9024.html)
, raises the right question: will the merger *promote* competition. "That is
a tougher standard to meet," the editorial concludes, "but it is in the
public interest generally and in the interests of Ameritech consumers
specifically that the case be proved." Hearing officials at the Illinois
Commerce Commission have overruled the concerns of staff and consumer
advocates and recommended the full Commission approve the merger with only
minor conditions. The ICC is expected to rule in June, a FCC schedule for
review is available at
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/1999/nrcc9024.html#
sch).
[SOURCE: Chicago Tribune (Sec 1, p.12), AUTHOR: Chicago Tribune Editorial
Staff]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904070139,00.html)
KENNARD'S SPEED BUMP MAY REDUCE MERGER ROADKILL
Issue: Mergers
In his column, Greising quickly surveys the recent rash of telecom mergers
and asks, With all these billions floating around, is there just one for me?
and Is this what Congress really meant by deregulation. To the former, the
answer is no -- consumers are not seeing any of this money -- especially not
in lower cable rates or better phone service or readable billing statements
or friendlier operators. To the latter, Greising offers that vertical
integration of communications [this is from the Business section, after all]
is what Congress intended with the 1996 Telecom Act. In the wide-open, post
Telcom Act, though, SBC may have overstepped the bounds with the $60 billion
offer for Ameritech -- and last week, FCC Chairman put on the brakes on the
deal. "The parties will say, well, you cleared the last one, why not this
one?" says former FCC commissioner
Glenn O. Robinson, a law professor at the University of Virginia. "The short
answer is, 'This one is different.' We're talking about an even larger
acquisition with a yet greater threat to competition." Chairman Kennard's
move runs counter to the consolidation we have seen and will probably result
in some guarantee that local markets in SBC and Ameritech service areas are
opened to competition. It also give Illinois regulators a chance to seek
commitments from th combined company before it raises rates, adds new fees
and/or fire thousands. "The $60 billion SBC-Ameritech deal probably
ultimately gets done. But Kennard at least has slowed down the process
enough that they'll have to take into account a new player at the table: the
customers who are the source of all those billions in the first
place."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: David Greising]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904070218,00.html)
MURDOCH TO BUY CONTROL OF FX, SPORTS NETWORKS
Issue: Merger/Cable
News Corp, under Rupert Murdoch, is buying out most of the interest of Liberty
Media and John Malone in the Fox/Liberty Network, a three-year-old joint
venture, for $1.4 billion dollars. The change increases News Corp.'s reach
into the US cable programming market. Murdoch will take over virtually all
of the operations of the network, including Fox Sports Net and entertainment
network FX. News Corp. also takes over the joint venture's 40% interest in
Rainbow Programming, a unit of Cablevision with interests in two New York
sports teams and Madison Square Garden. Liberty Media, formerly a part of
TCI and now a subsidiary of AT&T, will retain its 50% interest in
International Sports Programming Partners.
[SOURCE: Washington Post (E3), AUTHOR: Paul Farhi]
(http://www.washingtonpost.com/wp-srv/business/daily/april99/newscorp7.htm)
See also:
LIBERTY MEDIA TO COMBINE INTERNET ASSETS
Issue: Merger
John Malone has been busy! Liberty Media also plans to transfer its
interactive and Internet assets into TCI Music and rename the combined
operations Liberty Digital, the existing name of Liberty Media's interactive
unit. The new Liberty Digital will be worth about $1 billion.
[SOURCE: Wall Street Journal (B6), AUTHOR: Leslie Cauley]
(http://wsj.com/)
MURDOCH EXPANDS HIS REACH IN SPORTS
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904070216,00.html)
TELEPHONY
AT&T TO CHARGE A $3 MINIMUM FOR LONG DISTANCE
Issue: Long Distance
AT&T says it is setting a $3/month minimum for long distance calls because it
needs to make up for the money it loses on low volume callers. For example,
customers who
make $2.50 in calls will be charged a 50-cent fee.AT&T says it spends that
much just maintaining the account. FCC Chairman William Kennard says this
is not good for people who don't make a lot of long distance calls, but was
thankful for today's "more competitive long-distance marketplace" that
allows customers to choose other companies. AT%T estimates the new minimum
will affect
about 15% of their customers. Gene Kimmelman, co-director of Consumers Union
says this creates an increased divide between low-volume customers who will
pay more and high-volume customers who will get a break. [Guess you just
can't save by not spending anymore]
[SOURCE: Wall Street Journal (B7), AUTHOR: Rebecca Blumenstein]
(http://wsj.com/)
See Also:
AT&T Sets Minimum Monthly $3 Charge
[SOURCE: Washington Post (E1), AUTHOR: Mike Mills]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-04/07/069l-040799-idx.html)
BELL ATLANTIC IS SET TO FILE IN NEW YORK ON LONG DISTANCE
Issue: Long Distance/Regulation
Bell Atlantic has met conditions to file in New York state as a long-distance
carrier. The company is expected to file next week. The application will be
reviewed on the basis of federal mandated checklist that includes proof that
the company is open to competition. Ultimately Bell Atlantic must win the FCC's
approval to be a long distance carrier, which no Bell has yet done. The New
York Public Service Commission has recommended the approval, which will
increase its viability in the eyes of the FCC. Rivals AT&T and MCI WorldCom
say Bell Atlantic has not been fully open to competition. They complained of
difficulties in getting customers to switch over to their service from Bell
Atlantic.
[SOURCE: Wall Street Journal (B7), AUTHOR: Stephanie N. Mehta]
(http://wsj.com/)
FCC/REGULATION
BROADCASTERS BLAST NEW SCRUTINY OF RADIO
Issue: Regulation
Broadcasters are frustrated over the time it is taking the Federal
Communication Commission (FCC) to sign-off on radio-license transactions -- a
result of the rush to consolidate in the radio industry. Since the easing of
ownership mandated by the Telecommunications Act in 1996, radio companies who
could only own four stations in one market and 40 nationwide can now own eight
per market and hundreds across the nation. Last August, the FCC began flagging
proposed deals that could result in a company owning at least half of a
advertising revenue of a market. Broadcasters and media brokers say this policy
is unclear and takes too much time. "Anything remotely related to
concentration, the FCC is studying with a magnifying glass," complains Michael
Bergner media broker. The scrutiny hasn't caused the FCC to reject a deal. But,
critics like, Rep. Billy Tauzin (R-LA) believe the FCC shouldn't be considering
advertising when reviewing radio deals. This should be left to the Justice
Department. Commissioner Harold Furchtgott-Roth says the FCC doesn't have the
authority to consider antitrust issues. Others believe the Justice Department
doesn't have the resources to handle these cases and the FCC should step up
scrutiny in service of public interest. Robert Ratcliffe, deputy chief of the
FCC's Mass Media Bureau says scrutiny will continue -- including reviewing
limits on owning both radio and television stations in one market.
[SOURCE: Wall Street Journal (B6), AUTHOR: Kathy Chen]
(http://wsj.com/)
FROM 'DR. DISSENT' EVEN A 'YES' VOTE CAN SOUND LIKE 'NO'
Issue: Regulation
Federal Communication Commissioner, Furchtgott-Roth, nick-named Dr. Dissent,
has gotten used to being the minority in his votes of no. "He is the
antithesis of the deal maker," says Thomas Tauke, a former GOP congressman and
now chief Washington Lobbyist for Bell Atlantic. In a recent meeting, he
interrupted a California cable-TV operator who was thanking the FCC for
deciding not to adopt regulatory rules, by saying: "You should not be thankful
to this place when it follows the law." Although his job is to regulate the TV
industry, he and his family of six children do not have a TV in their home. He
stands out in more ways than one. In the midst of lawyers he has as PhD in
Economics. He got his job with the FCC by helping to draft portions of the 1996
Telecommunications Act when he was a staffer on the House Commerce Committee.
He is known to read his copy of the Act in meetings and says it is this law
that leads him to stand alone on issues. He says his dissents don't make him
ineffective, they just require the majority to think harder. FCC Chairman
William Kennard recently denied a plea by Furchtgott-Roth for an extension on a
key phone fee vote, because more time would not change his no vote, Chairman
Kennard said. Furchtgott-Roth believes the FCC's power should be limited.
However, lawmakers sympathetic to FCC reform will find no help from the
Republican commissioner, Furchtgott-Roth, who thinks it's inappropriate for the
FCC to advise Congress. Commissioner Furchtgott-Roth voted "no" on the rule
requiring long-distance companies to post their rates on the Internet. He said,
"long-distance companies "don't need any federal mandate to say, 'If you don't
do this, you'll be in trouble.'" He voted not and the rule was adopted 4-1.
[SOURCE: Wall Street Journal (A1), April 6, 1999; AUTHOR: Bryan Gruley]
(http://wsj.com/)
LEGAL ISSUES
LAWSUIT CLAIMS MCI DISCRIMINATES
Issue: Minorities/Legal Issues
Filing a lawsuit against MCI WorldCom in Los Angeles Superior Court on
Tuesday, attorney Raymond Boucher called it "redlining at its worst."
Boucher's client Darren Haylock attempted to make a calling card call last
week to Belize from his mother's home in South Central Los Angeles. MCI
refused to let the call go through. Haylock was able to make the call later
from his home in the San Fernando Valley. The lawsuit claims MCI WorldCom
discriminates by preventing customers from making international calls from
predominantly minority neighborhoods designated as "high fraud" areas. The
lawsuit charges MCI WorldCom with discrimination, deceptive practices, false
advertising, unfair competition, and unfair trade practices. MCI WorldCom
had no comment.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/WAPO/19990407/V000747-040799-idx.html)
INFOTECH
INTEL JOINS RACE FOR HOME NETWORKS
Issue: Technology
Intel Tuesday unveiled its first products aimed at networking the
home. The AnyPoint Home Network products are connectors priced between $79
and $189 that will link PCs and printers together over the home's standard
phone lines. The connectors have the ability to move 1 megabit of
information across standard phone lines, about 20 times more than the
current modem. AnyPoint works with Microsoft's Windows 95 and Windows 98
operating systems and is planning connectors for Apple Computer's Macintosh
OS. This generation of connectors is likely to be superseded by faster
connections built directly into PCs by year's end. Industry analyst Michael
Wolfe said other companies "have introduced similar products in the past but
Intel's the first major networking company to enter the market." Analysts
see potential for tremendous growth in home networking. An Intel competitor,
National Semiconductor, is working with Alation Systems to produce a
wireless communications system that could start appearing in consumer
electronics this fall.
[SOURCE: San Jose Mercury News, AUTHOR: Tom Quinlan]
(http://www.mercurycenter.com/svtech/news/indepth/docs/intel040799.htm)
JOURNALISM
BANANA JOURNALISM
Issue: Journalism
[Editorial] This week, a former Cincinnati Enquirer reporter violated one of
journalists' most important codes. In front of a Cincinnati courtroom, Mike
Gallagher reviled the name of one of his sources. Gallagher was asked to
identify sources that aided him in an investigation of the Chiquita company
that eventually led to his dismissal. The Enquire paid Chiquita a $10
million settlement after it was discovered that Gallagher had illegally
tapped into the company's voice mail system and drew "untrue conclusions"
about the company in his articles. While the authors understand Gallagher's
right to defend himself, they are appalled by his disregard for the all
important contract between reporters and confidential sources, one of
journalism's "sacred bonds".
[SOURCE: New York Times (A22), AUTHOR: New York Times Editorial Staff]
(http://www.nytimes.com/marketplace/)
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