INTERNET
Study Shows Boom in Net Use (ChiTrib)
Senate Committee Approves Net Gambling Ban (CyberTimes)
Writer Seeks Balance in Internet Power Shifts (CyberTimes)
Embrace Net Now, AOL Exec Warns Executives (ChiTrib)
Wireless ISP Is Unveiled By 3Com (SJM)
Web Music Site Enters Licensing Deal (CyberTimes)
FTC Sues 3 Web Sites Providers for Illegal Billing of
Small Firms (WP)
MERGERS
Frontier's Board Rejects Qwest Hostile Offer (WSJ)
Cisco to Buy TransMedia In Stock Deal (WSJ)
AT&T Bargains for Cable System Swap (USA)
JOURNALISM
Can This Be 'The End of News'? (ChiTrib)
INTERNET
STUDY SHOWS BOOM IN NET USE
Issue: Internet Demographics
"Nearly half of North America uses the Internet," said Mark Resch, executive
vice president at CommerceNet. "We use it to communicate, to learn, to shop
and to buy. It is as integral a part of our lives as the telephone." A study
by Nielsen Media Research and CommerceNet finds that 92 million people over
the age of 16 in the US and Canada are now using the Internet -- and the
number of women making purchases online is rising dramatically. "Certainly
the types of products you can purchase online are so much more diverse than
in years past," Jerome Samson, one of the study's coordinators, said. "The
only thing you could purchase online were hardware, software, things that
mainly appealed to a male audience." The study also found that 72 million
people use the Internet from home, while 46 million use it from work and 28
million from school. The rest use it from other locations, such as a library
or a friend's home.
[SOURCE: Chicago Tribune, AUTHOR: Ted Bridis, Associated Press]
(http://cnews.tribune.com/news/tribune/story/0,1235,tribune-nation-36857,00.
html)
SENATE COMMITTEE APPROVES NET GAMBLING BAN
Issue: Internet/Gambling
The Senate Judiciary Committee wants to stop traditional gambling from
spreading to homes and offices via the Web. On Thursday, it approved a bill by
Sen. Jon Kyl (R-AZ) to prohibit most forms of gambling on the Internet. After
it is endorsed today, the committee is expected to recommend that the
President, Congress and state lawmakers do the same. The Kyl bill would
"prohibit gambling on the Internet by extending the 1961 Wire Act's
prohibitions on interstate sports gambling conducted by phone or wire to the
Internet. It would also outlaw other forms of gambling, including cyber
casinos." Violators could face $20,000 or more in fines and up to four years in
prison. Opponents of the bill criticize it for its exemptions on online horse
and dog track wagers and for limiting the rights of Indian tribes to employ new
technologies to link their casinos. They also claim it is not a "comprehensive
solution" to the problem of online gambling that they say is a complex global
issue.
[SOURCE: New York Times (CyberTimes), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/06/cyber/articles/18gambling.html)
WRITER SEEKS BALANCE IN INTERNET POWER SHIFTS
Issue: Internet
Is the Internet breaking down barriers in our society and empowering
individuals, or is it propagating isolationism and self-evolvement? This is the
question that Andrew Shapiro grapples with in his new book _The Control
Revolution_. "There's got to be a balance between individual power and the
obligations of the individual to something greater -- a sense of community,
democratic values," said Shapiro who addresses efforts by corporations and
governments to take back control of information from the individual. He
gives the example of music and publishing industries attempts to prevent
copying of information without a digital key. He calls for "fair
hacking" laws that would allow users to make "fair use" copies of
copyrighted works. Shapiro also suggests that companies like America Online
and Microsoft create spaces called "public nets" like public access
channels on cable where marginalized speakers can have a voice.
[SOURCE: CyberTimes, AUTHOR: Carl S. Kaplan]
(http://www.nytimes.com/library/tech/99/06/cyber/cyberlaw/18law.html )
EMBRACE NET NOW, AOL EXEC WARNS EXECUTIVES
Issue: Internet
When rich people talk, people who want to be rich listen. So when 27-year
old multimillionaire Marc Andeerssen gives advice about the Internet..."It's
really time to go at it hard. Waiting is only going to make it worse," said
the co-founder of Netscape. "The price if you wait is (that) someone else
has already done it." Mr. Andeerssen predicts there will be about 1 billion
Internet users within 5 years and that the average time online will continue
to grow. The risks include being "amazoned" -- surpassed by a virtual,
online-only competitor.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Andrew Zajac]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99061802
25,FF.html)
WIRELESS ISP IS UNVEILED BY 3COM
Issue: Wireless
Now, if you want to, you can check email while watching a Cubs game in Wrigley
Field, or any other outdoor location. The 3Com corporation is launching a
wireless Internet service provider that will allow people to receive email
through the popular Palm Pilots and other hand held computers and phones.
Jointly owned with Aether Technologies, 3Com's new venture, Open Sky, will be
the third major company to offer wireless data equipment and services. The
other wireless data services have not managed to generate much market demand,
but Open Sky hopes to offer innovated applications -- such as the ability to
trade stock from the road -- that will attract customers.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/3com061899.htm)
WEB MUSIC SITE ENTERS LICENSING DEAL
Issue: Internet
Despite the strange relationship MP3.com has had with tradition music
entities, ASCAP, the American Society of Composers Artists and Performers,
has entered into a licensing agreement with MP3.com. MP3.com is limited from
what they can divulge because the company recently filed for an initial
public offering, but the deal is going to offer the following: 1) artists on
MP3.com who join ASCAP for a $10 fee will receive royalty payments for music
downloads and CD's sold and 2) MP3.com will have access to artists already
represented by ASCAP online. MP3.com has been pressured by the music
industry because of its easily replicated material. Even though that has
been well known, the number of artists on MP3.com has doubled over the last
four months to 12,000. Cox Enterprise has invested $45 million in the company.
[SOURCE: CyberTimes, AUTHOR: Lisa Napoli]
(http://www.nytimes.com/library/tech/99/06/cyber/articles/18ascap.html)
FTC SUES 3 WEB SITES PROVIDERS FOR ILLEGAL BILLING OF SMALL FIRMS
Issue: Internet Regulation
Web companies are taking advantage of small business firms and the FTC wants to
set them straight. The FTC said yesterday that it has sued three companies
-- CA-based Wazzu Corp. and Shared Network Services and VA-based WebViper -- for
unlawfully billing small firms after their "free trial period" for Internet
services ended and for the making of company Web sites that they promoted as
being "free of charge." "These operators often targeted businesses with less
than 10 employees," said Jodie Bernstein, director of the FTC's bureau of
consumer protection. "[Because] there was less likelihood they [would] have
rigorous accounting procedures." Though the company executives deny any
wrongdoing, the FTC is negotiating settlements with them in the hope that they
will repay the small firms for what they were illegally charged. It is also
working closely with the Small Business Administration on an education campaign
to alert business owners to be wary of hard-sell telemarketing calls.
[SOURCE: Washington Post (E3), AUTHOR: Margaret Webb Pressler]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/18/099l-061899-idx.html)
See also:
FTC FILES 3 SUITS IN CRACKDOWN ON 'CRAMMING'
Issue: Internet Regulation
The Federal Trade Commission has filed charges against three companies for
adding unordered services to consumers' bills. The companies are Wazzu Corp.
of Fountain Valley, CA, Shared Network Services, which does business as 1st
Page, of Lodi, CA, and WebViper, also known as Yellow Web Services, of
Montgomery, AL. The FTC says the companies charged small-business owners for
Internet services they never received by putting the charges on a phone
bill, often under "miscellaneous services." "Many have said that they just
haven't noticed it," said Jodie Bernstein, director of the FTC's Bureau of
Consumer Protection, of the $30 charges that have been appearing commonly on
victims' bills.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: William Bohlen]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99061802
08,FF.html)
MERGERS
FRONTIER'S BOARD REJECTS QWEST HOSTILE OFFER
Issue: Mergers
Responding to the bid from long distance company Qwest to purchase Frontier,
Frontier CEO Joseph Clayton stated, "We will of course continue to monitor
events and, where appropriate, respond in our shareholders' best interest."
But Frontier would have to pay a fee of $270 million to Global Crossing if
GC's $11.1 billion offer is rejected -- making an end to that deal unlikely.
[SOURCE: Wall Street Journal (B6), AUTHOR: Stephanie N. Menta and Joann S.
Lublin]
(http://wsj.com/)
[SOURCE: Washington Post (E1), AUTHOR: Noelle Knox]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/18/114l-061899-idx.html)
CISCO TO BUY TRANSMEDIA IN STOCK DEAL
Issue: Mergers
Cisco Systems, which originally specialized in hardware for computer network
connections, is attempting to become more diverse and compete with companies
such as Lucent Technologies. In a deal with TransMedia Communications, Inc,
a 66-employee start-up company in San Jose, CA, Cisco would acquire a
technology it has been unable to develop on its own. TransMedia develops
hardware that converts telephone calls into different formats. Cisco was
trying to develop the technology, but did not have the capacity and costs
were to high for phone companies and ISP's. This will be Cisco's 35th
acquisition as they attempt to acquire more diverse technologies.
[SOURCE: Wall Street Journal (Don Clark), AUTHOR: B6]
(http://wsj.com/)
AT&T BARGAINS FOR CABLE SYSTEM SWAP
Issue: Mergers/Cable
We are all aware how the regional Bell operating companies dominate the US
phone market. Leo Hindery, CEO of AT&T's broadband and Internet Service,
said of his latest dealings to control the cable industry, "I call it the
RBOC-ization of the cable industry." Hindery says if he is successful, New
York and Los Angeles will be the only major cities with any competition. He is
working on deal to acquire the smaller cable companies that are remaining
after AT&T's deal with MediaOne and he says these deals would mark "the end
of the industry as I know it."
[SOURCE: USA Today (B1), AUTHOR: David Lieberman]
(http://usatoday.com/)
JOURNALISM
CAN THIS BE 'THE END OF NEWS'?
Issue: Journalism
A look at how 24 hr cable news channels and the Internet are affecting
traditional news outlets -- newspapers and broadcast networks -- through the
eyes of a veteran reporter (now columnist). In 1965, 71% of American adults
had read a daily paper the previous day -- now, just 50% have and most
people (75%) think it is OK if they don't get a chance to read the paper
'cause there are so many different news outlets. Samuelson thinks newspapers
are much better today than they were 30 years ago -- it is more a bundle of
products (news, sports, business, lifestyle, health, cooking, science) meant
not merely to satisfy readers various interests, but to attract readers with
different interests. "Because this splintering of audiences threatens the
advertising and profits of newspapers and broadcasters, it also affects the
nature of news. For years, journalists and academics have criticized 'greedy
media monopolies' for 'shortchanging the news' to fatten profits. These
attacks were exactly backward. As long as newspapers and broadcasters were
highly profitable--and enjoyed market power and captive audiences--they
provided a fair amount of space and freedom for news. Growing competition
changes this." Now a story must sell -- or why bother?
[SOURCE: Chicago Tribune (Sec 1, p.31), AUTHOR: Robert Samuelson]
(http://chicagotribune.com/news/opinion/commentary/article/0,2669,SAV-990618
0405,FF.html)
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...and we are outta here. Have a great weekend.