TELEPHONY
New Fee Added to Phone Bill (WP)
FCC Proposing Phone-Number Changes To Prevent a
Shortage of Area Codes (WSJ)
INTERNET
Coming Era of High-Speed Net Access Is Here and Now
on College Campuses (CyberTimes)
E-Mail Becomes Snail Mail (CyberTimes)
E-COMMERCE
Hearing Examines Problems of Small Businesses on Net (SJ Merc)
Universal Music and BMG Form Team for Web Venture (NYT)
MERGERS
Charter to Buy Yet Another Cable Firm (WSJ)
FCC
Lawmakers Offer Bill To End Most FCC Merger Reviews (SJ Merc)
McCain Criticizes FCC On Phone Deal Review (ChiTrib)
FCC Oversight Hearing (Senate)
TELEVISION
Digital Guides Vie in TV Power Play (WSJ)
PRIVACY
Privacy and Ride-Alongs (NYT)
Lawmakers Raise Questions About International Spy Network
(CyberTimes)
US-Europe Privacy Talks Are Sputtering (NYT)
INTERNATIONAL
Allies Target Yugoslav Phones, Computers (WP)
Eutelsat Cuts Off Serbian TV Signals (WSJ)
U.S., Canada Resolve Dispute (WP)
TV Azteca Chief Turns Over Wireless Unit and Lifts
Its Ambitions (NYT)
TELEPHONY
NEW FEE ADDED TO PHONE BILL
Issue: Telephony/Competition
If they look closely, Bell Atlantic subscribers will see a new 23-cent charge
on the bills this month, a fee for "local number portability." This charge
allows customers to keep their phone numbers even if they change local phone
companies. Consumer advocates, however, say that consumers aren't quite getting
what they pay for when it comes to the more than $3 billion in new phone bill
charges since the passage of the 1996 Telecommunications Act. "We've got an
enormous mess here, and number portability is just the quintessential example
of what's gone wrong," said Gene Kimmelman, co-director of the Washington
office of Consumers Union. "You're paying for the benefits of choice -- the
problem is, you pay, but there's no one there to give you the benefits, to give
you the choice." Phone number portability is intended to help encourage
competition in local phone markets, but most consumers have yet to experience
local competition.
[SOURCE: Washington Post (E01), AUTHOR: John Schwartz]
(http://www.washingtonpost.com/wp-srv/business/feed/business927799631957.htm)
FCC PROPOSING PHONE-NUMBER CHANGES TO PREVENT A SHORTAGE OF AREA CODES
Issue: Telephone Regulation
"Unless something is done, we estimate we will run out of area codes and
phone numbers within 10 years," says an executive of Lockheed Martin, the
company that doles out phone numbers for the Federal Communications
Commission. At the FCC's opening meeting today, Commissioners will propose
requiring phone companies to return unused numbers and, instead of giving
the companies blocks of 10,000 numbers at a time, doling them out 1,000 at a
time. The increase in demand for second phones, cell phones and pagers are
just part of the problem. With new competitors entering markets since
deregulation, every request for additional numbers means another block of
10,000 numbers is tied up -- whether or not they could use them all or not.
Lockheed Martin estimates that only 5% of the numbers allocated are in use.
[SOURCE: Wall Street Journal (B10), AUTHOR: Kathy Chen]
(http://wsj.com/)
INTERNET
E-MAIL BECOMES SNAIL MAIL
Issue: Mail
A Web service called Lettepost.com lets people send "emails' to friends and
family who don't have email. You can go to the site at www.letterpost.com and
type in a message that will be printed out and sent, via snail mail, to its
destination. The service was developed by a computer scientist on sabbatical
from Trinity College in Dublin. "I came over here and was exposed to the whole
Silicon Valley thing, with 75 to 80 percent of people with Internet access,"
Dr. O'Mahony said. "In other parts of the U.S. and in lots of European and
Asian countries, this would be more like 20 percent. A substantial number of
people, like my parents' generation, will never get e-mail."
[SOURCE: New York Times (D8), AUTHOR: Hubert Herring]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/27post.html)
COMING ERA OF HIGH-SPEED NET ACCESS IS HERE AND NOW ON COLLEGE CAMPUSES
Issue: Broadband
Many college students are currently enjoying technology of the future, with
high-speed Internet connections 24 hours a day if they live on campus. Many
students report that ease and speed of their Internet connections has resulted
in near dependence on the Web for information and communication. "If I were to
suddenly lose my Internet connection, I probably would not be able to
communicate," said Noemi Millan, a freshman at Princeton University. Students
shop, do research, chat, get the news, and find jobs online. "When some
students at Georgetown University were asked recently whether they would go to
conventional newspaper to search the classified advertisements, a few looked at
one another as if they had never heard of the concept," reports Guernsey. With
the information and services now available online, students find fewer reasons
to turn to traditional media.
[SOURCE: New York Times (D5), AUTHOR: Lisa Guernsey]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/27post.html)
E-COMMERCE
HEARING EXAMINES PROBLEMS OF SMALL BUSINESSES ON NET
Issue: E-Commerce
The House Small Business Committee held a hearing on the effects of e-commerce
on small businesses yesterday. Rep Jim Talent (R-MO) said that less than 2% of
business with less than 100 employees operate Web sites, while about 40% of
companies with over 1,000 employees operate online. Small business Web sites
need to be well-designed and well-advertised, said New England seafood
retailer Brian Hanson. Going online, Hanson discovered that his business
"lacked technical skills, large capital for equipment and advertising and
the time necessary to manage it all." Rep. Talent is concerned that "small
business face the potential of losing market share to companies that are
staying ahead of this new technological wave."
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/069421.htm)
UNIVERSAL MUSIC AND BMG FORM TEAM FOR WEB VENTURE
Issue: E-commerce
Universal Music, the largest record company, and BMG Entertainment, the
music division of Bertelsmann AG, will team with AT&T and Matsushita to
create technology to sell, store and distribute music over the Internet.
Universal and BMG have already announced similar deals with other companies.
Major players in the music business seem so desperate to get a foothold in
electronic commerce that they will pursue multiple solutions simultaneously,
forging alliances with competitors and competing technology companies.
[SOURCE: New York Times (C2), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/27music.html)
MERGERS
CHARTER TO BUY YET ANOTHER CABLE FIRM
Issue: Mergers/Cable
Paul Allen's Charter Communications will buy Denver's Fanch Communications
for just over $2 billion. Charter's recent acquisitions firmly establish it
as the nation's 4th-largest cable firm with 5.5 million subscribers. Charter
also confirmed that it was paying ~$2 billion in cash and stock and assuming
$1.6 billion in debt for Falcon Cable TV of Los Angeles.
[SOURCE: Wall Street Journal (A3), AUTHOR: Leslie Cauley]
(http://wsj.com/)
See also:
CABLE DEALS FOLLOW TREND TOWARD REGIONALIZATION
[SOURCE: USA Today (B1), AUTHOR: David Lieberman]
(http://www.usatoday.com)
FCC
LAWMAKERS OFFER BILL TO END MOST FCC MERGER REVIEWS
Issue: Mergers/FCC
Commerce Committee Chairman John McCain (R-AZ) and Judiciary Committee Chairman
Orrin Hatch (R-UT) have proposed legislation to eliminate Federal
Communications Commission authority to review most mergers. The bill would only
allow the FCC to review proposed communications deals if antitrust
regulators declined to review a transaction. The senators introduced the bill
after some companies complained about the length of time that it took the
commission to approve their deals.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/484905l.htm)
MCCAIN CRITICIZES FCC ON PHONE DEAL REVIEW
Issue: Mergers/FCC
Sen John McCain (R-AZ) tongue-lashed FCC Commissioners yesterday about
comments made by a FCC staffer about the proposed SBC-Ameritech merger.
Thomas Krattenmaker, a telecommunications law expert who is reviewing the
merger, said that the deal appeared to fail the public interest test and
would be subject to certain conditions if it were to win approval. "There
was a $4 billion loss in market capitalization as a result of his
statement," said Sen McCain, who is also a candidate for the Republican
presidential nomination. "Whether or not a penny was lost, we constitute you
commissioners to make these decisions, not the staff people. My staff don't
make decisions for me, nor do they voice what my decision will be."
[SOURCE: Chicago Tribune (Sec3, p.3), AUTHOR: Frank James]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905270229,00.html)
FCC OVERSIGHT HEARING
Issue: FCC
Links to testimony of FCC Commissioners at yesterday's Senate Commerce
Committee hearing. Also includes statement form Committee Chairman John
McCain (R-AZ): Last year Robert Novak called the Federal Communications
Commission "the second most powerful bureaucratic entity after the Federal
Reserve Board," and he's right. The FCC is responsible for implementing
Congressional policy in regulating the telecommunications industry, which
accounts for over one-sixth of our country=s Gross National Product and is
the fastest-growing sector of our country=s economy....As big an impact as
the FCC's actions have on the industry and on the economy, however, it's the
impact of the FCC's actions on the *consumer* that should be our focus
today....In my view a majority of this Commission places too little
confidence in competition and way too much in regulation. It tends to ignore
the demands of making orderly, efficient, and fair decisions on the matters
before it, preferring to pursue issues that are within neither their
expertise nor their jurisdiction. It has shown a distressing tendency toward
inconsistent and ad hoc decisionmaking, and toward picking and choosing
which parts of the law it will choose to follow....Ted Turner has an
excellent philosophy on decisionmaking that should apply to the FCC --
"lead, follow, or get out of the way." To the extent the Committee finds
that the Commission is unable to lead or unwilling to follow, it's our
responsibility to make sure it gets out of the way.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/hearings/hearings.htm)
TELEVISION
DIGITAL GUIDES VIE IN TV POWER PLAY
Issue: Television
Television set makers, cable system operators, and satellite programming
providers are at war to be your gateway to television. With the ever-growing
list of available channels and services, each of the players wants to
control the screen you see when you first turn on your TV. Like Internet
portals, onscreen TV programming screens with be the gateways to consumers'
television experience. A major player is Gemstar, the creator of VCR plus
that allows viewers to program their VCRs using numbers published in
television guides. Currently, Gemstar pays broadcasters to transmit the
Guide Plus viewing guide; cable operators are forced to include the data as
part of "must carry" regulations. Some are concerned that Gemstar's growing
power will put it at odds with set manufacturers as Microsoft's power put it
a cross purposes with PC makers.
[SOURCE: Wall Street Journal (B1), AUTHOR: Evan Ramstad]
(http://wsj.com/)
PRIVACY
PRIVACY AND RIDE-ALONGS
Issue: Journalism
[Editorial] Support for the Supreme Court's ruling barring police from
allowing reporters and photographers to accompany police on raids. "The
Court's interest in privacy is healthy. But its decision could have perverse
consequences if police departments misread its narrow holding as a broad
license to fence off large areas of police activity from journalistic
observation and reporting. In future cases the Court should make clear that
its ruling applies only to residences, not to surrounding grounds or public
areas."
[SOURCE: New York Times (A30), AUTHOR: NYT Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/27thu4.html)
LAWMAKERS RAISE QUESTIONS ABOUT INTERNATIONAL SPY NETWORK
Issue: Privacy
As part of an amendment to the annual intelligence budget bill, the House
Committee on Intelligence requested that the National Security Agency and
the Central Intelligence Agency provide a detailed report to Congress
explaining what legal standards they use to monitor the conversations,
transmissions and activities of American citizens. There is growing concern
in the United States, Europe and Australia about Echelon, a computer system
that can monitor millions of e-mail, fax, telex and phone messages. The
system, originally set up as an international spy network, includes the
security agencies of the United States, Britain,
Canada, Australia and New Zealand. U.S. Lawmakers are concerned that it
could be used to eavesdrop on American citizens. The finished report will
outline the legal bases and other criteria used by United States
intelligence agencies when assessing potential wiretap targets. It will be
submitted to the House and made available to the public. A European
Parliament report on the subject released May 10, "Development of
Surveillance Technology and Risk of Abuse of Economic Information"
(http://www.iptvreports.mcmail.com/stoa_cover.htm) provides a detailed
account of Echelon and other intelligence monitoring systems.
[SOURCE: New York Times Cyber Times, AUTHOR: Niall McKay]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/27network.html)
US-EUROPE PRIVACY TALKS ARE SPUTTERING
Issue: Privacy
Led by the Commerce Department, US officials have been negotiating with
European Union officials to reach a compromise on privacy issues. The EU
passed a directive last year that prohibits companies from transmitting
personal info to countries that do not offer "adequate" privacy protection.
US officials have been trying EU officials to accept a system under which
American companies would self-regulate a code of good behavior. Both sides
we're hoping for an agreement by June 21 when President Clinton will meet
with European leaders, but if a deal isn't in place after a meeting this
Friday, chances seem low something will be in place by 6/21.
[SOURCE: New York Times (C1), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/27europe-us-priv
acy.html)
INTERNATIONAL
ALLIES TARGET YUGOSLAV PHONES, COMPUTERS
Issue: Telephony/International
Many citizens in Belgrade and other major Yugoslav cities have been without
water and electricity for the past few days. It is likely that they will soon
be without telephone or Internet access as well. NATO commanders have finally
received an "ok" to move forward with attacks on Yugoslavia's telephone and
computer networks. The attacks are part of an effort to cut communication
between the government in Belgrade and its troops in Kosovo. "The plan is to
cut off the main telephone system, drive their computer systems crazy and make
sure the Serbs can only use cellular phones that are most vulnerable to
eavesdropping by satellite," a senior NATO official. Until this point, Yogoslav
communications have been virtually surveillance resistant.
[SOURCE: Washington Post (A1), AUTHOR: William Drozdiak]
(http://www.washingtonpost.com/wp-srv/inatl/longterm/balkans/stories/brusse
ls052799.htm)
EUTELSAT CUTS OFF SERBIAN TV SIGNALS
Issue: Journalism/Censorship
Claiming it was "inciting racial hatred," a European satellite consortium
cut off Serbian Radio Television's (RTS) signal in a move that will deny
many Western media outlets of one of their main sources of video of the
conflict. NATO has made RTS's studios and broadcast facilities bombing
targets since April 23 and has been working just as long to cease the
satellite signal. Ten civilians have lost their lives in attacks on Belgrade
television facilities.
[SOURCE: Wall Street Journal (A21), AUTHOR: Kevin Delaney]
(http://wsj.com/)
U.S., CANADA RESOLVE DISPUTE
Issue: Magazines
The world's two largest trading partners, the US and Canada, have finally
reached an agreement in a long trade dispute over magazines and advertising.
The Canadian government had been pushing legislation that would prohibit
foreign magazines from carrying advertisements aimed at Canadians. The US, in
response to the proposed limits, threatened to impose tariffs on a variety of
Canadian products if the ad restrictions were enacted. Under the compromise
reached today, U.S. publishers will be allowed to publish Canadian editions of
their magazines as long as less than 18% of the advertising content is from
Canadian advertisers. Canada has long been concerned that American magazines
are steeling ad revenue from Canadian publications by offering lower
advertising rates.
[SOURCE: Washington Post (E3), AUTHOR: Steven Pearlstien]
(http://www.washingtonpost.com/wpsrv/business/feed/business927799638067.htm)
See also:
US-CANADA AGREEMENT ON MAGAZINES
[SOURCE: New York Times (C5), AUTHOR: Kalyani Vittala]
(http://www.nytimes.com/yr/mo/day/news/financial/canada-magazines.html)
PACT LETS US PUBLISHERS WHOLLY OWN CANDIAN MAGAZINES, AVERTING BATTLE
[SOURCE: Wall Street Journal (B5), AUTHOR: Julian Beltrame]
(http://wsj.com/)
TV AZTECA CHIEF TURNS OVER WIRELESS UNIT AND LIFTS ITS AMBITIONS
Issue: Wireless
Ricardo Salinas Pliego, chairman of the second-largest television network in
Mexico, will turn over Unefon, his fledgling wireless telephone service, to
a joint venture formed by his network, TV Arteca, and other investors. The
new wireless company will provide low-cost local telephone service,
television programming and Internet access. Mr. Salinas is facing a June 15
deadline to pay the Mexican Government for frequencies won in bidding last
year -- investors in the TV network have ben worried that Mr. Salinas would
use the network to save the wireless company.
[SOURCE: New York Times (C5), AUTHOR: Julia Preston]
(http://www.nytimes.com/yr/mo/day/news/financial/mexico-phone.html)
--------------------------------------------------------------