Communications-related Headlines for 6/24/99

CHILDREN ONLINE
Michigan Faces Challenge on Online Porn Law (CyberTimes)
Children's Internet Protection Act (Senate)

INTERNET
FTC to Curb Medical Sales Pitches (WSJ)
Youthful Web Network Has a Modest Goal: Replacing TV (NYT)
No Clicking Allowed in Artist's Browser (CyberTimes)
To Protest Unwanted E-Mail, Spam Cop Goes to the Source (NYT)
Old Newsgroups Marketed in New Packages (NYT)

ECOMMERCE
Millennium Digital Commerce Act (Senate)

MERGERS
Qwest Raises its Bids for 2 Companies (WP)
VoiceStream to Buy Omnipoint In Accord Valued at $2.04 Billion (WSJ)
Airtouch/Vodafone Merger (FCC)

WIERLESS
SnapTrack Inc. Finds a Way to Locate Cell-Phone Callers (WSJ)
Safety for Wireless Customers (Senate)
Global Mobile Personal Communications by Satellite (NTIA)

ENCRYPTION
Commerce Approves Encryption Bill (House)
Encryption Bill (Senate)

CHILDREN ONLINE

MICHIGAN FACES CHALLENGE ON ONLINE PORN LAW
Issue: Internet/Society
The American Civil Liberties Union (ACLU) filed suit yesterday to block a newly
signed Michigan law from taking effect. The Internet Crime Bill, sponsored by
Sen. Beverly S. Hammerstroh (R-MI) and signed by Gov. John Engler on June 2,
would make it illegal for a person to use the Internet to knowingly disseminate
"sexually explicit matter" considered "harmful to minors" to those under 18
years old. The ACLU says the law is so broad that it violates the First
Amendment and the interstate commerce provisions of the U.S. Constitution.
Those backing the ACLU include Art on the Net, a Web site with artwork
including photographs and pictures of nudes, a sex therapist, Dr. Marty Klein,
who answers questions online and a Michigan AIDS information group. Though
there are exemptions in the law for educational material, the ACLU argues that
it is impossible for publishers to know with certainty who is receiving their
material and say the definition of educational material is murky. The law also
might be unconstitutional because it could apply to Internet communication
originating outside of Michigan and interstate activity is left up to the
federal government to regulate. The Michigan law is expected to be overturned
given that similar laws in New York and New Mexico have not fared well in
federal courts. The ACLU intends to ask the court for a preliminary injunction
against the law at least until further court proceedings. The law is scheduled
to take effect August 1st.
(http://www.nytimes.com/library/tech/99/06/cyber/articles/24michigan.html)
[SOURCE: New York Times (CyberTimes), AUTHOR: Pamela Mendels]

CHILDREN'S INTERNET PROTECTION ACT
Issue: Universal Service
From the News Release: The Committee on Commerce, Science, and
Transportation approved by voice vote a bill to require schools receiving
universal service discounts (E rate money) to use a technology-based system
on their computers to screen out child pornography and obscenity. Schools
and libraries may also use the technology to block material that they find
is inappropriate for minors. A substitute to S.97 was offered by Senators
John McCain (R-AZ), Chairman of the Commerce Committee, and Fritz Hollings
(D-SC), Ranking Democrat on the Commerce Committee. The original bill was
introduced by Sens McCain and Hollings on January 19. The main provisions of
the bill are: 1) In order to be eligible for universal service, a school or
library would have to certify with the FCC that they have selected a
technology and have implemented a policy to filter or block materials on
computers with Internet access; 2) Libraries with only one computer may put
a technology or non-technology based policy in place. For libraries with
more than one computer, material must be blocked while computer is in use by
a minor; and 3) School and library administrators are free to choose any
filtering or blocking system that would best fit their community standards
and local needs. In providing for universal service discounts for Internet
access, no federal governmental body can make any qualitative judgements
about the system nor the material to be filtered that the school or library
has chosen.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-86.htm)

INTERNET

FTC TO CURB MEDICAL SALES PITCHES
Issue: Internet
The Federal Trade Commission (FTC) is finally treading where few regulators
have been willing to go: deceptive medical sales in cyberspace. The FTC is
expected to announce today that its investigators have found over 800 Web sites
that are making deceptive health claims. They also will announce settlements of
four companies accused of deception. These sites have been advertising and
selling products for a variety of ailments, such as shark cartilage pills as a
cure for cancer. Along with the legal action, the FTC is planning an
educational program to help the public find legitimate medical help on the Web.

[SOURCE: Wall Street Journal (A2), AUTHOR: John Simons]
(http://wsj.com/)

YOUTHFUL WEB NETWORK HAS A MODEST GOAL: REPLACING TV
Issue: Internet/TV
In Hollywood, a fledgling network is developing shows for a diverse group of
niche audiences including gay youth, fraternity brothers, skateboarders, and
Christian teenagers. None of these programs will be seen on TV they are all
part of the Digital Entertainment Network's Internet-only schedule. DEN hopes
to make its mark -- and lots of money by narrowcasting television like content
on the Net. "This is a new stage of entertainment relevant to whoever you are,
wherever you are," said Adam Solomon, the head of marketing at DEN. Analysts
question weather the network's audiences will be able to attract sufficient
advertising revenue to support programming. But the twenty-something's who are
at the heart of this venture are sufficiently optimistic. According to DEN
program host and professional in-line skater, Arlo Eisenberg: "MTV
revolutionized television. But this will replace TV."
[SOURCE: New York Times (E9), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/06/circuits/articles/24denn.html)

NO CLICKING ALLOWED IN ARTIST'S BROWSER
Issue: Internet/Art
Internet spectators will soon be allowed to take "a dip in the Internet's
stream of consciousness." On Thursday, Netomat, an artist-designed alternative
to the standard Web browser, will be available for free download from the
Netomat site (www.netomat.net). The Internet software, designed by Maciej
Wisniewski a New York-based artist who works as a software developer for IBM,
ironically, does not allow viewers to click on the floating images or words
that users call up to view. Why the paradox? Wisniewski wants users to realize
that there are many different ways of interfacing with the vast and
multi-dimensional network that is the Internet. He also aims to humanize the
medium. By not clicking on the images to view more in-depth information, but by
calling the sources up at random and observing their intermix, he hopes people
will think of what and who the sources of information are on Internet. "I think
sometimes of the network as the many people who contribute to it," he said.
"All the information that this browser retrieves and displays in front of you
is information that somebody has made the effort to create and put up on the
network. The way we are accustomed to viewing them is very one dimensional."
Netomat could be poetic, but it could also be a commercial success if the
browser is ever used to create customized portals and if the code is made
widely available to other artists, as Wisniewski is considering.
[SOURCE: New York Times (CyberTimes), AUTHOR: Matthew Mirapaul]
(http://www.nytimes.com/library/tech/99/06/cyber/artsatlarge/24artsatlarge.h
tml)

TO PROTEST UNWANTED E-MAIL, SPAM COP GOES TO THE SOURCE
Issue: Internet
A new Web site allows users to fight back against unsolicited junk email.
Spamcop.net helps users detect the origin of a spam message and then sends a
copy of the unwanted mail to the network administrator of the spammer's
Internet service provider. Julian Haight, the site's creator, reports that over
120,000 complaint messages were sent to ISPs from his site in last month alone.
Many service providers have a no-spam policy and will close accounts if they
discover their subscribers are responsible for unwanted bulk mailings.
[SOURCE: New York Times (E4), AUTHOR: J.D. Biersdorfer]
(http://www.nytimes.com/library/tech/99/06/circuits/articles/24spam.html)

OLD NEWSGROUPS MARKETED IN NEW PACKAGES
Issue: Internet
Usenet, which used to be the domain of hard-core cyber-geeks, is now being
repackaged for the masses. Because no one owns Usenet's 45,000 newsgroups, they
are very attractive to commercial ventures that are looking to offer instant
communities to the browsing public. Companies like Talkway, Remarq, and
Deja.com gather and sort messages sent over Usenet and offer users an easy
point-and-click method of reading messages. Talkway has even renamed newsgroups
to be less intimidating for users. For example, they've turned
misc.education.home-school.christian into Christian Education. "These companies
are looking to aggregate an audience around discussion and turn that into
revenue," said Anya Sacharow, an analyst at Jupiter Communications. "They're
tapping into an existing base of people already exchanging information."
[SOURCE: New York Times (E1), AUTHOR: Katie Hafner]
(http://www.nytimes.com/library/tech/99/06/circuits/articles/24usen.html)

ECOMMERCE

MILLENNIUM DIGITAL COMMERCE ACT
Issue: Ecommerce
From Press Release: The Committee on Commerce, Science, and Transportation
passed by voice vote a bill to facilitate electronic commerce by encouraging
the use of digital signatures. Senator Spencer Abraham (R-MI), Chairman of
the Manufacturing and Competitiveness Subcommittee, offered a substitute to
S.761, the Millennium Digital Commerce Act. Senator Abraham introduced the
original bill on March 25, and cosponsors include Senators John McCain
(R-AZ), Chairman of the Commerce Committee, Ron Wyden (D-OR), Conrad Burns
(R-MT), and Sam Brownback (R-KS). The bill would do the following: 1)
Preempt state law so that digital contracts aren't denied legal effect
solely because they are in electronic form. This Federal preemption of
state law is an interim measure until the states enact uniform standards
which are consistent with S.761 or the Uniform Electronic Transactions Act
(UETA); 2) Grant parties to a transaction the freedom to determine the
technologies and business methods to be used in the execution of an
electronic contract; 3) Establish principles for international use of
electronic signatures: paper-based obstacles to electronic transactions must
be eliminated; parties to an electronic transaction should choose the
electronic authentication technology; parties to a transaction should have
the opportunity to prove in court that their authentication approach and
transactions are valid; and allow the free market to determine the type of
authentication technologies used in international commerce; and 4) Direct
the Department of Commerce and Office of Management and Budget to report on
Federal laws and regulations that might pose barriers to electronic commerce
and report back to Congress on the impact and provide suggestions for reform.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-83.htm)

MERGERS

QWEST RAISES ITS BIDS FOR 2 COMPANIES
Issue: Merger
Qwest Communications is not giving up its fight to acquire Baby Bell U.S. West
and long-distance carrier Frontier Corp. In fact, it has increased its bid for
the companies to $54.3 billion (from $50.3 billion) and diversified it to be
paid in cash as well as stocks. It will now pay 8% more for Frontier and 11%
more for U.S. West than what its rival, international telecommunications
newcomer Global Crossing, is offering the two companies. Analysts say the
closing of either deal would create a telecommunications powerhouse, but
speculate that a Qwest merger would result in "a powerful creature" in the U.S.
market whereas "the Global Crossing merger would set up a more potent
international player." According to one analyst, Qwest's new "extremely
attractive offer" could make it a very difficult one for U.S. West shareholders
to turn down.
(http://washingtonpost.com/wp-srv/WPlate/1999-06/24/229l-062499-idx.html)
[SOURCE: Washington Post (E1), AUTHOR: John Schwartz]

VOICESTREAM TO BUY OMNIPOINT IN ACCORD VALUED AT $2.04 BILLION
Issue: Wireless
VoiceStream Wireless Corp., a regional cellular phone company operating in 13
states in Western U.S. markets, agreed to buy Omnipoint Corp., a cellular phone
company that serves New York, Philadelphia, Boston and Detroit. The $2.04
billion deal furthers the consolidation of the nation's wireless industry. This
deal brings together the two largest providers of global system for mobile
communications (GSM), which is the digital wireless standard in Europe. Beyond
this deal, Hutchison Whampoa Ltd., a Hong Kong-based telecommunications
provider, will be investing $957 million in the newly combined company. In
addition, Cook Inlet Region Inc., one of VoiceStream's partners, is making an
investment of an undisclosed amount to acquire Omnipoint's entrepreneurial
licenses. Analysts believe this will give AT&T and Sprint a run for their money
in the national market as people desire seamless coverage and no roaming
charges when traveling.
[SOURCE: Wall Street Journal (A4), AUTHOR: Nicole Harris]
(http://wsj.com/)
See Also:
BETHESDA'S OMNIPOINT IN BIG WIRELESS DEAL
(http://washingtonpost.com/wp-srv/WPlate/1999-06/24/195l-062499-idx.html)
[SOURCE: Washington Post (E8 ), AUTHOR: Reuters]

AIRTOUCH/VODAFONE MERGER
Issue: Mergers
From the FCC News Release: The Wireless Telecommunications Bureau (Bureau),
on delegated authority, has approved the merger of AirTouch Communications,
Inc. (AirTouch) and Vodafone Group, Plc. (Vodafone), subject to certain
conditions. The Bureau concluded that the merger does not present
competitive concerns, and that its approval serves the public interest. The
adopted Order grants the applications filed by AirTouch and Vodafone
pursuant to sections 214 and 310(d) of the Communications Act of 1934 (the
Act), as amended, for approval to transfer AirTouch's licenses and
authorizations to Vodafone. In accordance with the terms of sections 214(a)
and 310(d), the FCC cannot grant such applications unless applicants
demonstrate that the transfer of the licenses and authorization will serve
the public interest, convenience, and necessity. Wireless Telecommunications
Bureau contacts: Lauren Kravetz at (202) 418-7240 (Commercial Wireless
Division); TTY at (202) 418-7233
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9026.html)

WIERLESS

SNAPTRACK INC. FINDS A WAY TO LOCATE CELL-PHONE CALLERS
Issue: Wireless
SnapTrack Inc. has found an inexpensive alternative to upgrading towers to
track the location of cellular calls. The alternative being developed by
SnapTrack is a satellite technology that can be installed via chip into the
cellular phone. This means that cellular carriers would not have to rebuild
their network infrastructure saving them millions of dollars. With this system,
the phone would take a "snapshot" of the signal being beamed down from the
satellite. SnapTrack's software, which would be incorporated in the chip placed
in the phone, would process that signal. The signal is then sent over the
wireless network to the phone company's computer where the location process is
completed. Splitting the process between SnapTrack's loaded chip and the
wireless carrier will save power so the phone's battery is not affected. It is
expected to cost phone makers $5 or $10 more per unit. The technology was
tested in Florida, and found to be about 90% accurate. The Federal
Communication Commission is requiring wireless-phone companies to have the
ability to track calls for 911 purposes by October 2001. They are planning to
host a round table discussion involving tracking technology with wireless
carriers and developers of cellular locator systems.
[SOURCE: Wall Street Journal (B8), AUTHOR: Nicole Harris]
(http://wsj.com/)
See also:
SAFETY FOR WIRELESS CUSTOMERS
Issue: Wireless
From News Release: The Committee on Commerce, Science, and Transportation
approved by voice vote a bill to create a universal standard for 911
wireless technology and promote technology to reduce response time for car
accidents and other emergencies. S.800, the Wireless Communications and
Public Safety Act, was introduced by Senators Conrad Burns (R-MT), Chairman
of the Communications Subcommittee, and John McCain (R-AZ), Chairman of the
Commerce Committee. The bill is designed to tie people through their
wireless telephones to medical centers, police, and firefighters. It would
expand the areas covered by wireless telephone service; establish parity of
protection for the provision or use of wireless 9-1-1 service; and upgrade
9-1-1 systems so that they can deliver more information, like location and
automatic crash notification data. S.800 is supported by the Emergency
Nurses Association, American College of Emergency Physicians, Coalition for
American Trauma Care, Fraternal Order of Police, Cellular Telecommunications
Industry Association, American Automobile Association, National Emergency
Number Association, and many other national health and public safety groups.
The House E-911 bill, H.R. 438, was passed by the House 415 to 2 on February
24, 1999.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-85.htm)

GLOBAL MOBILE PERSONAL COMMUNICATIONS BY SATELLITE
Issue: Satellite/International
NTIA filed comments in the FCC's International Bureau's Docket No. 99-67 and
NPRM 9165 on efforts to implement the international Global Mobile Personal
Communications by Satellite Memorandum of Understanding. NTIA remains
concerned about a number of issues vital to the future needs and operations
of the Federal aeronautical radio navigation community and implementation of
the Global Navigation Satellite System (GNSS) and its constituent elements
the United States Global Positioning System (GPS) and the Russian Federation
Global Navigation Satellite System (GLONASS).
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/fccfilings/nprm9165_62399.htm)

ENCRYPTION

COMMERCE APPROVES ENCRYPTION BILL
Issue: Encryption
From the News Release: As part of Chairman Bliley's ongoing effort to
promote the growth of electronic commerce, the full [House] Commerce
Committee approved a bill today providing export relief for encryption
products. The bill - H.R. 850, The Security and Freedom through Encryption
("SAFE") Act - was approved as amended, by unanimous voice vote. In
approving the bill today, the Committee adopted --all by voice vote -- a
number of amendments improving the bill. The Committee approved several
amendments offered by Mr.Oxley (R-OH); one that allows the Secretary of
Commerce to deny the export of encryption products to specific groups and
organizations if it would be used to harm national security, used to
sexually exploit children or used for illegal activities by organized;
another amendment clarifies that despite a company's ability to export a
product through encryption capabilities, the Secretary of Commerce may
prohibit that product's export for other reasons; and a third amendment
requires the Secretary of Commerce to consult with the Secretaries of State
and Defense, Director of Central Intelligence and the Attorney General when
conducting a technical review of an encryption product for export. The
Committee also approved an amendment offered by Mr. Dingell (D-MI) that
requires a comparable encryption product be available in a foreign country
in order for a U.S. company to export similar encryption technology to that
country. The Committee also approved two amendments offered by Mr. Stearns
(R-FL); one that prohibits U.S. companies from exporting products to
portions of China, specifically to the People's Liberation Army or the
Communist China Military; the second amendment requires that if a person has
been served a subpoena for access to encrypted information and if the person
has the capability to decrypt the information but does not, then that person
will be subject to additional criminal penalties.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/eeae8466ba03a2158525677f0
04b4d11/4c342b8f2876474f852567990066352b?OpenDocument)

ENCRYPTION BILL
Issue: Encryption
From Press Release: The Committee on Commerce, Science, and Transportation
today passed by voice vote S.798, the PROTECT Act: a bill to promote
electronic commerce that is consistent with our national security goals and
interests. S.798 was introduced by Senator John McCain (R-AZ), Chairman of
the Committee on Commerce, Science, and Transportation, on April 14.
Cosponsors include Senators Conrad Burns (R-MT), Chairman of the
Communications Subcommittee, Ron Wyden (D-OR), Spencer Abraham (R-MI), John
Kerry (D-MA), and Patrick Leahy (D-VT). The bill would do the following: 1)
Direct the National Institute of Standards and Technology (NIST) to complete
the establishment of an advanced encryption standard by January 1, 2002; 2)
Allow for immediate exportation of encryption of key lengths of up to 64
bits; 3) Permit the exportation of non-defense encryption (above 64 bits) to
responsible entities and governments of North Atlantic Treaty Organization
(NATO), Association of Southeast Asian Nations (ASEAN), and Organization for
Economic Cooperation and Development (OECD); 4) Allow for liberalization of
export controls for encryption by creating an Encryption Export Advisory
Board to review applications for exemption of encryption of over 64 bits and
give recommendations to the Secretary of Commerce. The board would be made
up of 12 members: the Under Secretary of Commerce for Export Administration,
seven individuals appointed by the President (one from the National Security
Agency, one from the Central Intelligence Agency, one from the Office of the
President, and four representatives from the private sector who have
experience in information technology), four representatives appointed by
Congress (one by the Majority Leader of the Senate, one by the Minority
Leader of the Senate, one by the Speaker of the House, and one by the
Minority Leader of the House); 5) Give the Secretary of Commerce 15 days to
respond to recommendations. If he rejects a recommended exemption, his
decision is subject to judicial review; 6) Reaffirm presidential authority
to veto a recommended exemption for national security purposes, and to
establish terrorist and embargo controls; 7) Authorize increased funding to
law enforcement and national security agencies to upgrade facilities and
intelligence; and 8) Give the Secretary of Commerce the authority to
prohibit the exportation of particular encryption products to an individual
or organization in a foreign country identified by the Secretary.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-82.htm)

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