MERGERS
Phone Merger Debate Turns to Rate Reduction (ChiTrib)
MCI Is Said To Weigh Bid For Mediaone (NYT)
SBC-Telmex Deal Seeks Phone Carrier in Puerto Pico (NYT)
INTERNET
Clinton to Back Privacy Measures (WP)
Computer Industry Chips In For Presidential Hopefuls (CyberTimes)
Survey: Parents Eager, Anxious About Kids On Internet (SJMerc)
Mixed News at Online Conference (NYT)
INTELLECTUAL PROPERTY
'Star Wars' Producers Warn ISPs Over Copyright (CyberTimes)
RealNetworks Releases MP3 Software (WP)
NEWSPAPERS
Newspaper Industry Fails To Stem Circulation Drop (NYT)
BROADBAND
Demand For Data: More, More, Faster, Faster (SJ Merc)
CABLE/BROADCASTING
Hungry For Wireless (B&C)
Speech: New Mexico Broadcasters Association (FCC)
MERGERS
PHONE MERGER DEBATE TURNS TO RATE REDUCTION
Issue: Mergers
$30 million or $343 million...consumer advocates in Illinois are arguing
that any savings caused by the SBC takeover of Ameritech should be passed on
to consumers as dictated by state law. SBC-Ameritech lawyers officials argue
that that law does not apply to the phone giant -- and even if it did, the
company will only save $30 million in the first three years of the merger.
The office of the Illinois attorney general disagrees, estimating savings at
more than 10 times that, or $343 million. The Illinois Attorney General,
Cook County state's attorney, and the Citizens Utility Board are asking the
Illinois Commerce Commission to force the combined company to reduce
Illinois' customers rates by the full $343 million. Richard Mathias, the ICC
chairman, said that in two weeks, the five members will begin holding public
discussions to determine what action to take on the merger. The current
public hearings on the matter will conclude Tuesday.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905040201,00.html)
MCI IS SAID TO WEIGH BID FOR MEDIAONE
Issue: Merger
In what could be a contest between America's two largest telecommunications
companies, MCI Worldcom is considering joining the fight against AT&T to
acquire MediaOne, the giant cable company. Over the weekend, AT&T's offer of
$58 billion was accepted by MediaOne, but Comcast was given until Thursday
to make a counter offer. While both Microsoft's Paul Allen and AOL had
considered helping out Comcast fight AT&T, they recently decided against
involvement in the deal. If MCI does joint Comcast in making a bid for the
cable company, however, AOL might be willing to enter into a three-way
partnership. MCI's interest in the cable company may mainly stem from a
desire to keep MediaOne out of AT&T's hands. MediaOne could also help in
MCI's deployment of a high-speed Internet access to customers.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel and Geraldine Fabikant]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/04cabl.html)
See Also:
AOL DECLINES TO AID COMCAST IN BID WAR
[SOURCE: Washington Post (E1), AUTHOR: Paul Farhi]
(http://www.washingtonpost.com/wp-srv/business/daily/may99/att4.htm)
See also:
MEDIAONE LIKES AT&T BID OVER COMCAST'S
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905040119,00.htm)
SBC-TELMEX DEAL SEEKS PHONE CARRIER IN PUERTO PICO
Issue: International
SBC Communications said Monday that is has joined with Telefonos de Mexico,
or Telmex, to buy Cellular Communications of Puerto Rico -- the biggest
wireless phone carrier on that island and in the US Virgin Islands -- for
$464 million. SBC is the second largest local phone company in the US next
to Bell Atlantic. It is dominant in Texas and California and owns 10% of
Telmex, Mexico's dominant phone company. A presence in Puerto Rico could
help SBC expand to other areas of the Caribbean. As part of the deal, Telmex
would own at least 25% of Cellular Communications of PR. In reference to
another part of the world, SBC executives dispelled reports that SBC is in
talks with members of the European partnership of Deutsche Telekom and
Telecom Italia.
[SOURCE: New York Times (C10), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/yr/mo/day/news/financial/sbc-puerto-rico.html)
INTERNET
CLINTON TO BACK PRIVACY MEASURES
Issue: Privacy
President Clinton today unveils one of the Administration's most ambitious
efforts to bolster consumer privacy and protections against alleged abuses
by the financial industry. Clinton will ask Congress to require banks and
other financial institutions to give consumers the chance to limit how much
of their financial and medical records can be shared or sold to others. The
White House will also ask for measures designed to ensure that financial
service companies give consumers more detail about floating credit card
rates, fees for the use of automated teller machines, and other financial
arrangements. The plan also will request more than $5 million in
Congressional funding to bolster online surveillance and train law
enforcement officials in combating securities fraud. The request also calls
for a "public-private partnership" to track down fraud artists who misuse
individuals' personal information.
[SOURCE: Washington Post (E1), AUTHOR: Kathleen Day and Robert O'Harrow, Jr.]
(http://www.washingtonpost.com/wp-srv/business/daily/may99/privacy4.htm)
COMPUTER INDUSTRY CHIPS IN FOR PRESIDENTIAL HOPEFULS
Issue: Campaign Finance/Privacy
According to the Center for Responsive Politics (CRP), the computer industry
has already contributed at least $162,925 to presidential candidates for 2000.
Vice President Al Gore tips the scales with high-tech contributions of $75,250,
followed by George W. Bush who has raised $67,759. Bill Bradly is in third
place for money from high-tech companies, with $19,9265. This money accounts
for only 7% of $21 million raised so far by these three candidates, but
high-tech donation are expected to increase, says CRP. A major reason for this
is Technology Network (TechNet) -- a Silicon Valley-based political action
group. The group, made up of 140 computer companies, arranges meetings
between top political leaders and the high-tech sector. Senator John McCain
and former Vice President Dan Quayle are among those who have met recently
with TechNet.
In other political news, the Clinton administration and the European Union have
missed an April deadline in agreeing on provisions for an accord on data
privacy. In June the European Union's Commission is expected to vote on
whether or not the US has done enough to meet the EU's standards for
privacy. David Aaron, the International Trade Administration Ambassador and
John Mogg, the director general of the European Commission disagree on key
issues and are set to meet again on May 28. Last October, a law went into
effect that prohibited the EU from doing business with any country that does
not have comparable privacy protection standards. Trade may go on during the
negotiations that have been conducted between the EU and US for nearly a
year. Last week, a coalition of 60 consumer groups from the US and Europe --
TransAtlantic Consumer Dialogue -- passed a resolution that opposed Aaron's
proposal to allow companies to regulate their own privacy practices. The
coalition is calling for an international convention on privacy protection.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/04dispatch.html)
SURVEY: PARENTS EAGER, ANXIOUS ABOUT KIDS ON INTERNET
Issue: Internet
Parents are torn between being deeply fearful about Internet influence on
their children and supporting the computer network's use as an educational
tool. That conflicting view is part of the results of a telephone survey to
be released today in Washington by the Annenberg Public Policy Center.
Joseph Turow, who wrote the report, said, "People trust their kids with the
Internet, but they don't trust the Internet with their kids." The study
divided parents into three groups based on their responses. Turow said 39%
of parents can be described as "online warriors," who are convinced of both
the happy and scary elements of the Internet and most concerned about the
impact of the Web on kids. The same percentage of parents are "gung ho" and
reject nearly all statements about its alleged negative effects. The third
group includes "disenchanted" parents who question the Internet's value for
children.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/068822.htm)
MIXED NEWS AT ONLINE CONFERENCE
Issue: Advertising
At a conference in San Francisco on Monday, an Internet advertising group --
Future of Advertising Stakeholders (FAST) -- cited some progress in convincing
companies to peddle their goods on the Internet. Another study, expected to be
released today, is not as postive. The Internet Advertising Bureau, an online
advertising association, reports that Internet advertising revenues in 1998
doubled from 1997 sales of $907 to reach $1.92 billion. This is greater that
the $1.58 billion spent on outdoor advertising in 1998. The amount of different
products that are advertising online has also grown. In a second study, The
Association of National Advertisers (ANA) found that mainstream companies are
still uncertain about the Internet. 500 large industrial companies were
surveyed. 61% are advertising online, down from 68% in 1997. The amount of
money they spend is also less. A key barrier that 68% of those surveyed
reported was not being able to measure the cost effectiveness of their ad. "In
print you have a tear sheet, on TV you get a report that the commercial ran.
This medium (Internet) has not been able to do that yet," said Robin Webster of
ANA. FAST is working to make progress in this direction. They have published
guidelines for Internet advertisers and hope to set a standard, as print and
TV has.
[SOURCE: New York Times (C9), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/04adco.html)
INTELLECTUAL PROPERTY
REALNETWORKS RELEASES MP3 SOFTWARE
Issue: Intellectual Property
The music piracy debate grew with RealNetworks' Monday release of
RealJukebox, a product designed to make it easier to download and play music
on a computer. Also Monday, Thomson Consumer Electronic Inc. announced that
it will market a $200 portable device under the RCA brand for playing music
downloaded from a computer. The recording industry is worried that
distribution of music through the Internet will severely weaken copyright
laws. RealJukebox will move digital music distribution beyond the
technically savvy and into the mainstream, according to one industry
observer. It will contain an anti-piracy device that limits a consumer to
making a single copy of a music file for their own use. However, consumers
will be able to easily disable the device in order to send out copies of the
music to friends via e-mail.
[SOURCE: Washington Post (Online), AUTHOR: David Bauder (Associated Press)]
(http://www.washingtonpost.com/wp-srv/business/daily/may99/realnetworks3.htm)
'STAR WARS' PRODUCERS WARN ISPs OVER COPYRIGHT
Issue: Intellectual Property
With all the fan-fair surrounding the eagerly awaited release of the "Star
Wars" prequel,"Episode I: ThePhantom Menace," the film's producer,
Lucasfilm, is taking steps to curb the unauthorized distribution of the
movie via the Internet. In letters sent to nearly 700 Internet service
providers, Lucasfilm requested that any unauthorized video be removed by the
service on which it is hosted. Many ISPs, however, felt that the letter went
too far in holding the companies responsible for seeking outcopyright
infringers. "My reaction was they are trying to get me to do their work for
them, look at Web sites I host and find out if any of my clients are indeed
violating the copyright act," said Daniel Seni, president of Amaranth
Networks, a Web hosting service. Lucasfilm's lawyers claim that the letter
only requests ISPs to comply with rules set forth in the recently passed
Digital Millennium Copyright Act, which requires Internet host to remove
copyright violators once alerted of possible infringements.
[SOURCE: New York Times (C1), AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/04star.html)
NEWSPAPER
NEWSPAPER INDUSTRY FAILS TO STEM CIRCULATION DROP
Issue: Newspapers
The latest figures from the Audit Bureau of Circulations show that average
daily newspaper circulation is down five-tenths of 1% and Sunday circulation
has dropped 1% over the six months ending on March 30. Newspapers in
competitive markets like Denver and Minneapolis, as well as those with a
national audience -- USA Today and The New York Times -- enjoyed increased
circulation, defying the downward trend. The Wall Street Journal outsells
USA Today Monday through Thursday. The greatest decline in daily papers was
in Boston and Philadelphia. The greatest drop was in the Boston Herald
circulation that went down 9.4% in the past 6 months. The daily with the
greatest increase was The Denver Post, which has cut prices of papers to
little more that pennies a day. Its circulation increased 4.7%.The New York
Times Sunday circulation increased 2.3 %. Among Sunday papers in decline are
The Chicago Sun Times, St.Louis Post Dispatch, and The Boston Globe. John
Morton, an industry analyst, commented on the trend: "The newspaper industry
has had, since the invention of television, a weakening circulation picture.
Up until the 1990's, it just meant that circulation didn't grow as fast as
households. Now it's losing ground.
[SOURCE: New York Times (C8), AUTHOR: Felicity Barriger]
(http://www.nytimes.com/yr/mo/day/news/financial/newspaper-circulation.html)
See also:
CIRCULATION HOLDS STEADY AT MOST PAPERS
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Tim Jones]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905040204,00.htm)
BROADBAND
DEMAND FOR DATA: MORE, MORE, FASTER, FASTER
Issue: Bandwidth
The growth of the Internet and data communications is being driven by
expansion of the telephone networks, which is being driven by rapid advances
in fiber optics. The expansion in capacity, or bandwidth, is responding to
and accelerating the craving for data. The direct beneficiaries are large
corporations, Internet service providers and phone companies that depend on
the long distance backbone. The payoff for the general public comes through
the resulting overall growth of the Internet. The capacity of fiber optics
is increasing rapidly because the speed of the pulses is increasing and
because different colors of infrared light are allowing multiple
simultaneous codes on a single strand of fiber. Advances are doubling the
performance of fiber-optic networks every nine to 12 months, according to
John Roth, president of Nortel, and no slow down is in sight. The cost of
bandwidth has dropped 99% over the past decade, and Roth believes it will
drop another 99% in the coming decade.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/data050499.htm)
BROADCASTING/CABLE
HUNGRY FOR WIRELESS
Issue: Wireless
MCI WorldCom and Sprint have both become wireless spectrum giants. It is
high-speed data and local telephony, not pay TV, that has turned the
long-distance companies into ardent wireless suitors. The recent purchases
and acquisitions of the two companies (CAI Wireless for MCI WorldCom and
PCTV and American Telecasting for Sprint) has helped resurrect the wireless
sector. Sources that are familiar with the wireless industry suggest two
publicly held companies (Nucentrix and Wireless One) and two key markets
(Los Angeles and San Francisco) remain targets. Predictably, neither MCI
WorldCom nor Sprint will comment on their next moves.
[SOURCE: Broadcasting&Cable (p. 36), AUTHOR: Price Colman]
(http://www.broadcastingcable.com/cable/cable_article.asp?articleID=69223...)
SPEECH: NEW MEXICO BROADCASTERS ASSOCIATION
Issue: Broadcasting
Commissioner Gloria Tristani's Speech before the New Mexico Broadcasters
Association. Com Tristani covers two topics: how to ensure that our vital
translator system survives and thrives into the next century and low power
radio. 1) "I see a couple of big challenges facing translators over the next
decade. First, there's the danger of displacement, largely caused by the
allotment of a second channel to full-power stations to transition to DTV.
Second, there's the problem of how translators themselves transition to
digital." 2) "Since the 1996 Act was passed, the number of radio station
owners is down about 12%, even though the total number of stations has
actually increased by almost 4%. As the business becomes more and more
consolidated, it gets harder and harder for new people to get into the radio
business and more tempting for existing owners to cash in and get out." ....
"In closing, let me say how much I value the role that free, over-the-air
broadcasting plays in our society. Even with other outlets like the Internet
and cable competing for people's attention, most people still turn to
broadcasting for their news and information -- especially on issues of
importance to the local community. That is a tremendous responsibility and
one I know this Association takes seriously. I hope we can continue to work
together to ensure that our broadcasting system remains the finest in the
world."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Tristani/spgt905.html)
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