CABLE
Execution is the Mantra (B&C)
Diversity: Why Is It Still So Elusive? (B&C)
Cable TV Going Interactive (SJM)
INTERNET
On the Web, as Elsewhere, Popularity Is Self-Reinforcing (NYT)
Chemical Reports Sparking a Debate (SJM)
E-COMMERCE
Taxing Web Wallets (NYT)
As E-Commerce Surges, So Do Technical Problems (NYT)
Internet Mind Control (ZDNet)
BROADBAND
Sprint to Tackle the Broadband Market By Selling Its
ION Network to Consumers (WSJ)
MEDIA & SOCIETY
House Rejects Media Control Bills (B&C)
MINORITIES
New Tax Certificate for the Age of Convergence (FCC)
THIS WEEK ON THE HILL
Deployment of Data Services (House)
Mark-up on Bills and Nominations (Senate)
ADVERTISING
Net Companies Look Offline for Consumer Data (CyberTimes)
JOURNALISM
Follow the Leaker (WP)
INTERNATIONAL
Europe Pushes for a 'Free' Net (WP)
INFO TECH
Survey Finds PC Usage in Homes Has Dropped (WSJ)
For Your Eyes Only (WSJ)
CABLE
EXECUTION IS THE MANTRA
Issue: Cable
The National Cable Television Association convention is Chicago was a
coming-out party for AT&T's Michael Armstrong as well as a farewell fete for
TCI's John Malone and NCTA President Decker Anstrom. As cable is making
promises to be a full service provider -- video, Internet and telephony --
the emphasis of the convention seemed to be on execution: choosing the right
technology and making it work. With themes like "Enter the Broadband
Millennium," cable just ain't cable anymore. But the Portland, OR ruling on
open access contributed to a somber mood.
[SOURCE: Broadcasting&Cable (p.8), AUTHOR: Price Colman]
(http://www.broadcastingcable.com/top/top_article.asp?articleID=692236583)
DIVERSITY: WHY IS IT STILL SO ELUSIVE
Issue: Diversity
"People of color, as a market, are larger than AT&T, Time Warner or
Comcast," said Bresnan Communications' Joe Lawson. They have $650 billion in
spending power; they are 20% of all cable subscribers; and they generate
$6.7 billion in cable subscriber revenue. Minorities make up 29.1% of the
cable work force -- but most are at the bottom. Of the 39,000 people of
color in the cable industry, none own a system and just 1 is in corporate
marketing. There are only five minority-owned cable networks. Studies show
that companies that diversify their management teams have as much as 50%
greater sales so, Lawson estimates, the absence in diversity in cable is
costing the industry billions. "If it makes us uncomfortable, it *should*
make us uncomfortable. But what should make us *more* uncomfortable is not
doing anything about it."
[SOURCE: Broadcasting&Cable (p.40), AUTHOR: Deborah McAdams]
(http://www.broadcastingcable.com/)
CABLE TV GOING INTERACTIVE
Issue: Cable/Internet
As interactive TV services debut in a spattering of communities around the
country, it is apparent that real pioneers in this area are smaller cable
companies and not the industry giants. "We don't see them beating down our
door, asking for these services yet," said AT&T spokesman Andrew Johnson.
"I guess our research doesn't indicate that, as of today, the market's ripe for
those kinds of services." But one interactive TV provider, Worldgate of
Bensalem, PA, reports a tripling of subscribers since just March. The
high-speed Internet access through cable connections is one of the big
attractions of these interactive TV services. Cable operators that have
invested heavily in costly upgrades to expand capacity and covert lines into
two-way networks, are eager to see a financial payback and hope interactive TV
might be just the ticket.
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
(http://www.mercurycenter.com/svtech/news/indepth/docs/cable062199.htm)
INTERNET
ON THE WEB, AS ELSEWHERE, POPULARITY IS SELF-REINFORCING
Issue: Internet
Researchers have found that a smaller number of very popular sites on the Web
command a share of the total traffic on the Internet. In a study conducted for
Xerox, Lada Adamic and Bernardo Huberman measured traffic to universities and
adult entertainment sites. Contrary to the notion of the Web as an equalizing
force, they found that the top 5 percent of all sites in the sample received
74.81 percent of all traffic. As economist would say, the Internet appears to
be a "winner takes all market". "This doesn't say it will be hopeless for a
small mom-and-pop Web site," Sridhar Rajagopalan, a member of the IBM research
team that conducted a study similar to the Xerox's. "It's more like a lottery."
[SOURCE: New York Times (C4), AUTHOR: John Markoff]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/21parc.html)
CHEMICAL REPORTS SPARKING A DEBATE
Issue: Internet
What is a "public record" and should it be disseminated by the Internet? Those
are the issues in question with the Environmental Protection Agency (EPA)
gathering information from chemical companies across the country. These
materials are being collected as part of the 1990 Clean Air Act. The
controversial information in these reports to the EPA include worst case
scenarios for chemical plants -- such as what could happen if there was a
massive toxic spill in a specific geographical location. It would also list the
local schools, hospitals and emergency response plans for each location. People
are concerned because these public records used to be kept in limited places,
such as a county office, where people would have to physically come in and view
the documents. They are concerned about terrorists getting this information too
easily from the Internet. American Civil Liberties Union Senior Staff Attorney
Chris Hansen said the Internet should not be treated any differently than other
information channels. Bill Pease, a Senior Scientist at the Environmental
Defense Fund, said, "Communities have the right to know the possible off-site
consequences of chemical hazards. We have too many of these accidents occurring
in the Bay Area and surrounding communities." This may be among the first of
many controversies involving public government records on the Web. If Congress
does not exempt this material from the Freedom of Information Act, it will be
available to everyone over the Internet.
[SOURCE: San Jose Mercury News, AUTHOR: Deborah Kong]
(http://www.mercurycenter.com/svtech/news/indepth/docs/chem062199.htm)
ECOMMERCE
TAXING WEB WALLETS
Issue: E-commerce
Today, a Congressional Commission will be examining the issue of taxing
Internet purchases. While 45 states require buyers to pay sales taxes -- even
on out-of-state Internet purchases, only 1% of Americans who bought on the
Internet last month paid any taxes at all. Last fall, Congress passed the
Internet Tax Freedom Act, which imposed a three-year ban on any Internet-only
taxes. But long term solutions for how to deal with sales tax in Cyberspace
have yet to be developed. If the federal government fails to create new tax
rules that reflect the realities of the new economy, 30,000 different taxing
jurisdictions will be compelled to apply their current tax laws to Internet
merchants creating a taxing Web of confusion for consumers, sellers, and local
authorities.
[SOURCE: New York Times (A19), AUTHOR: Michael Moynihan, (former Treasury
Department official, Senior Fellow at the Center for Strategic and
International Studies]
(http://www.nytimes.com/yr/mo/day/oped/21moyn.html)
AS E-COMMERCE SURGES, SO DO TECHNICAL PROBLEMS
Issue: E-commerce
The much-publicized shutdown of auctioneer Ebay for 22 hours, is just one
instance of the kind of technical glitches that e-commerce sites must deal with
on a regular basis. It is extremely challenging to construct networks that can
deal with a doubling of traffic every six months (or sooner). Some say that it's
amazing that high-volume sites don't crash more often. Most technically
demanding sites today are probably online brokerage firms, which -- according
to a company that tracks e-commerce sites -- are accessible more than 90% of
the time.
[SOURCE: New York Times (C1), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/21tuff.html)
INTERNET MIND CONTROL
Issue: Ecommerce
Berst examines the battle over control of the first screen consumers see
when they turn on their information appliance. The importance springs from
two human traits: laziness and habit. If a consumer begins an Internet
experience, chances are s/he will be too lazy to change and then will just
get in the habit of starting there. The owner of that site, then, wields
enormous influence over what consumers do next. The biggest battlefields
include set-top boxes for TVs, Internet access start-up screens, wireless
appliances, corporate portals, cable Internet providers, and PCs. Phoenix
Technologies -- which makes software that sits between the PC hardware and
the Windows operating system -- recently announced a venture called ebetween
designed to help Internet vendors find and retain consumers by getting
around the "Microsoft blockade."
[SOURCE: ZDNet AnchorDesk, AUTHOR: Jesse Berst]
(http://www.zdnet.com/anchordesk/story/story_3531.html)
BROADBAND
SPRINT TO TACKLE THE BROADBAND MARKET BY SELLING
ITS ION NETWORK TO CONSUMERS
Issue: Broadband
Sprint has announced it will market its Integrated Online Network (ION)
to consumers in Denver, Kansas and Seattle this fall. The ION services will be
delivered directly to the home by Sprint's digital-subscriber lines. This
service will offer multiple telephone lines, speedy Internet access, unlimited
long distance, videoconferencing and interactive video games. Since the cost of
the ION services are estimated at $100 to $150, Sprint will be targeting
consumers who are already writing more than three checks to media companies
monthly. Sprint still has to utilize Baby Bell lines for transmission and must
pay them an access fee. They have also invested $1 billion in wireless-cable
companies, which they hope can be used to bypass the Baby Bells in the near
future.
[SOURCE: Wall Street Journal (B6), [AUTHOR: Nicole Harris]
(http://wsj.com/)
MEDIA & SOCIETY
HOUSE REJECTS MEDIA CONTROL BILLS
Issue: Media & Society
There was a flurry of action in Washington last week concerning media and
children. This summer, the House and Senate will reconcile two versions of a
juvenile crime bill. The Senate version included media-related amendments,
but the House defeated an amendment by Rep Henry Hyde (R-IL) which would
have made it a crime to sell explicit violent or sexual material to minors
under 17. The entertainment industry is worried that it has become a large,
easy target in the wake of violence in schools this Spring. Jack Valenti,
head of the Motion Picture Industry Association of America, said "They are
expressing concern because they believe that some people in Congress have
gone mad and are acting like there is no Constitution."
[SOURCE: Broadcasting&Cable (p.14), AUTHOR: Paige Albiniak]
(http://www.broadcastingcable.com/top/top_article.asp?articleID=692236566)
MINORITIES
NEW TAX CERTIFICATE FOR THE AGE OF CONVERGENCE
Issue: Minorities
FCC Chairman William Kennard detailed a plan to open the doors of
opportunity to women, minority and small-scale entrepreneurs across all
communications industries. As the different communications industries
converge - when phone lines carry movies, cable lines carry phone calls, and
the airwaves carry both, Chairman Kennard declared, "We can and should
initiate a new tax certificate program." He made these remarks
(http://www.fcc.gov/Speeches/Kennard/spwek922.html) at a luncheon in New
York hosted by the Citizenship Education Fund. Kennard outlined five
elements of a new tax certificate program; 1) An effective tax certificate
must apply not just to radio, TV and cable, but to all telecommunications
businesses including wireline, wireless and satellite; 2) A useful tax
certificate program should provide incentives for any small, disadvantaged
business, but it should recognize that companies owned by minorities and
women face unique obstacles which warrant enhanced benefits; 3) A successful
program must impose limits on how many times an entrepreneur can benefit
from a certificate; 4) An efficient plan needs strict standards on firms
eligible to purchase licenses so that large corporations or unscrupulous
dealmakers operating as fronts are not the ones to benefit from this
program; and 5) A cost-effective program needs safeguards to prevent
speculative ventures from indiscriminately flipping properties and to
attract owners committed to building businesses that serve communities.
Chairman Kennard encouraged Congress, industry and activists to support a
new tax certificate. He emphasized the need to preserve this diversity of
viewpoints to keep public debate lively and to keep the nation's democracy
vibrant. He said, "Let's work together - business, Congress, experts,
activists and citizens - to create a new tax incentive program that honors
our most cherished values and creates a communications sector that is truly
open to all Americans." For 17 years under the original tax certificate
program, if an owner of a radio or TV station sold it to a minority, the
broadcaster could defer capital gains tax. In 1995 Congress ended the program.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9045.html)
THIS WEEK ON THE HILL
DEPLOYMENT OF DATA SERVICES
Issue: Broadband
Thursday, June 24, 1999 10:00 a.m. in 2322 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on Deployment of Data Services. (Subcommittee Chairman Tauzin (R-LA) is
expected to introduce broadband legislation in the near future. Among other
things, Rep Tauzin's bill would allow BOCs to offer advanced data service
across LATA boundaries.)
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/schedule.htm)
MARK-UP ON BILLS AND NOMINATIONS
Issue: Legislation
Senate Commerce Committee mark-up scheduled for Wednesday, June 23, at 9:30
a.m. in room 253 of the Russell Senate Office Building. Senator McCain
(R-AZ) will preside. Bills include: 1) S.97, Children's Internet Protection
Act, 2) S.761, Millennium Digital Commerce Act, 3) S.798, Promote Reliable
On-Line Transactions to Encourage Commerce and Trade (PROTECT) Act, and 4)
S.800, Wireless Communications and Public Safety Act (E-911 Bill).
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/schedule.htm)
ADVERTISING
NET COMPANIES LOOK OFFLINE FOR CONSUMER DATA
Issue: Internet/Advertising
Advertisers want to use a consumer's offline purchasing history to better
target banner ads to them online. DoubleClick Inc, an Internet advertising
firm, and Abacus Direct Corp, a company that sells information about consumers'
catalogue purchases, announced last week that they plan to merge. Together,
they want to improve the impact of banner advertising on consumers. They say
they need to increase "click-through rates" (the rate at which consumers click
on advertising banners) and CPMs (the cost to advertisers for each 1,000 ad
banners displayed) which have been falling since 1996. With the use of
DoubleClick's advanced technology (ie. "cookies"), consumers are tracked as
they visit an Internet site. Initial information about a consumer is gathered
by DoubleClick (ie. name, address) and instantaneously reviewed and matched
with Abacus' information on that consumer's shopping preferences. Then, a
banner specially targeted to fit his or her buying habits is served. Suppliers
of customer information like Abacus Direct have detailed data on the consumer
shopping preferences of up to 95% of U.S. households. Privacy advocates are
upset at the fact that personal information could be used without a consumer's
knowledge or consent. In response, they plan to file a complaint with the FTC
"protesting the merger, on the grounds that the new company would violate
the standards of fair information collection by using data in ways not
envisioned by consumers when they relinquish that information."
[SOURCE: New York Times (CyberTimes) (B10), AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/99/06/cyber/commerce/21commerce.html)
JOURNALISM
FOLLOW THE LEAKER
Issue: Journalism
Microsoft's Bill Gates knows how to work the media. During the antitrust trial,
Gates carefully crafted a press release to the Associated Press to get his
comments out and try to shift the dialogue in the case against the government.
Microsoft spokesmen watched, pleased as 'the story', essentially a PR piece,
caught on with other major newspapers. Then, during a lunch break at the trial,
an email was slipped to another AP reporter who was undaunted. "I've been the
beneficiary of leaks," said the reporter, "and I've been the victim of leaks in
terms of having to play catch-up the next day." Microsoft prefers to give leaks
to one source, usually the AP. "It's a dilemma. If we give it to everyone it
looks cooked and no one will cover it. If it appears as a breaking news story
everyone feels they have to cover it. You should know that as soon as AP broke
we got calls from most of the major news outlets to whom we provided a copy and
they wrote it" [Dilemma, indeed.]
[SOURCE: Washington Post (C1), AUTHOR: Howard Kurtz]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/21/010l-062199-idx.html)
INTERNATIONAL
EUROPE PUSHES FOR A 'FREE' NET
Issue: International
European consumers continue to demand that their governments cut local phone
rates for Internet use, despite increases in free Internet access. The typical
European user pays double what Americans pay for Internet access. Not only is
s/he charged a monthly subscription fee for access, but per-minute charges to
the local phone company as well. Freeserve, the pioneer free-access provider in
Europe, started a wave of "zero subscription fee offers" to obtain customers
early-on in the game and "build a stake in future e-commerce." U.S. giants --
like the Microsoft Network, Dell Computer, America Online Europe and
Hewlett-Packard -- have either eliminated their subscription fee or are
considering doing so. Fortunately for them and other local ISPs, they still get
a cut of the local phone charges that their members continue to pay -- to
consumer's continued dismay. The present and future scenarios? Consumers are
currently bouncing around from service to service. In the future, "heavy users
will keep lobbying for flat-rate phone service, light users will stick with the
free-access companies." ISPs with rich parent companies will win and remain a
strong presence in the continent, while phone companies will lose out in the
face of the continued, and strong, public discontent.
[SOURCE: Washington Post (F19), AUTHOR: Victoria Shannon, Special to The
Washington Post]
(http://washingtonpost.com/wp-srv/WPlate/1999-06/21/091l-062199-idx.html)
INFO TECH
SURVEY FINDS PC USAGE IN HOMES HAS DROPPED
Issue: Technology
Computer ownership at home has increased over the past four years. On the other
hand, use of those machines and their services has dropped tremendously.
Arbitron NewMedia, a New York based unit of Ceridian Corp., took a survey
earlier this year of 5,500 consumers by phone and mail. They have tabulated the
respondents aged 16 to 74, but have yet to do the children. This could be one
reason why numbers in use have decreased. Other factors include faster access
at work and the impatience with technical difficulties at home. Roberta
McConochie, Arbitron New Media's Research Director, said she was very surprised
because there was virtually no growth. People who subscribe to Internet
services now represent 38% of U.S. consumers -- but only 24% of them said they
actually use the services they pay for.
[SOURCE: Wall Street Journal (B7), [AUTHOR: Don Clark]
(http://wsj.com/)
FOR YOUR EYES ONLY
Issue: Technology
With endless email distribution and voice mail, there is a growing concern that
some overwhelmed employees are tuning out the most important messages.
MCI Worldcom President, Bernard J. Ebbers, says he is concerned that too many
of his employees are spending their days sending messages and information back
and forth to each other - instead of tackling important work at hand. Ebbers
stated, "In my opinion, it is the biggest deterrent to employee productivity."
Cisco Systems has a selective method for increased information -- the
higher your position at the company, the more information you have access to.
Deloitte Consulting reduces problems created by monitoring internal mail
distribution. Many of their employees can only be added to mailing lists with
the approval of a manager. Companies are trying to decide what strategies to
use to sort through the wealth of information while keeping their employees the
most productive.
[SOURCE: Wall Street Journal (R10), [AUTHOR: Rebecca Blumenstein]
(http://wsj.com/)
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