INTERNET
3-Week Delay in Opening Up Internet Name Registration (NYT)
For a Personal Touch, Some Sites Add Real People (NYT)
Brazilians Take to the Web With Uncommon Speed (NYT)
Web Snags Ads from Newspapers, Phone Books (USA)
Schools turn to Internet (SJM)
BROADCASTING
TV Station's Libel Trial Revisits Old Murder Case (NYT)
Hearings on Public Broadcasting and Consumer/Investor Access (House)
MERGERS
US West Inc. And Frontier To Weigh Bid (WSJ)
Lucent, Cisco Settle (CNN)
ANTITRUST
Microsoft, Running Scared (NYT)
INTERNET
3-WEEK DELAY IN OPENING UP INTERNET NAME REGISTRATION
Issue: Internet
The Commerce Department has announced that there will be a three-week delay in
the introduction of competition in the Internet name registration business. As
part of the process of transferring control of the Internet to the private
sector, the government developed a plan to end Network Solutions official
monopoly on the registration of domain names. The nonprofit Internet
Corporation for Assigned Names and Numbers (ICANN) was created to oversee the
transfer of the network into private hands. Almost from the beginning, the
process has been marked by controversy, with many questioning ICANN's decision
to levy a $1-a-year free on every registered domain name. Most importantly,
Network Solutions and ICANN have not been able to come to an agreement about
who has rights to the information about who the over 5 million registered
domain names belong to. If Network Solutions refuses to share the information,
the Commerce department has threatened to allow another company to take over
the administration of .com, .net and .org. Such a move could cause a split in
the Internet's root server, which could result in Internet chaos.
[SOURCE: New York Times (C1), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/28name.html)
See also:
COMMERCE DEPARTMENT, NETWORK SOLUTIONS AGREE TO EXTEND SHARED REGISTRATION TEST
BED UNTIL JULY 16
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/testbed062599.htm)
FOR A PERSONAL TOUCH, SOME SITES ADD REAL PEOPLE
Issue: E-Commerce
Several e-commerce sites are taking a unique approach to "humanizing" their
operations: they are replacing software with real people to provide customer
service. "Especially as the Internet moves into the mainstream, consumers are
looking for that comfort zone that ties into the world they're used to," said
Chris McCann, senior vice president of 1-800-Flowers, which is implementing an
Internet telephony service to answer consumer questions. Other companies such
as Eddie Bauer and Hewlett-Packard have plans to implement a combination of
text-based chat and Internet telephony customer support packages. The desire to
enhance online customer relations stems from the flood of complaints that
accompanied last year's holiday shopping season. Resent studies have also
indicated that between 33% and 66% of online transactions are never completed.
Online retailers are beginning to realize that e-commerce might require more
overhead costs than many originally anticipated.
[SOURCE: New York Times (C4), AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/99/06/cyber/commerce/28commerce.html)
BRAZILIANS TAKE TO THE WEB WITH UNCOMMON SPEED
Issue: International/Internet
At this moment, South America's largest country, Brazil, might just be the most
competitive portal market in the world. Yahoo, America Online, Microsoft's MSN
and Telefonica of Spain all have plans to compete with local companies in this
rapidly growing Internet market. In Latin America's most wired country, the
number of Brazilians on the Internet jumped 130% last year alone. Despite
Brazil's economic instability and sever inequities, experts predict Internet
penetration will grow 60% to 100% in the next three years. What is not known,
however, is who will emerge as winners in Brazil's intensifying portal war.
[SOURCE: New York Times (C2), AUTHOR: Simon Romero]
(http://www.nytimes.com/library/tech/99/06/biztech/articles/28braz.html)
WEB SNAGS ADS FROM NEWSPAPERS, PHONE BOOKS
Issue: Internet
Newspapers and the Yellow Pages are facing a huge threat: losing $50 million
dollars in local advertisements to the Web. Forrester Research has predicted
that by 2002 Web advertising will jump to 27% from 15% of the advertising pie,
as others continue to shrink. John Sturm, CEO of the Newspaper Association of
America, said he believes newspapers will not be hurt because they are online
as well as in print, so they have a double advantage in the game.
[SOURCE: Wall Street Journal (B1), [AUTHOR: Miriam Jordan]
(http://wsj.com/)
SCHOOLS TURN TO INTERNET
Issue: Internet
Some schools are finding an alternative to selling pizzas or candy for needed
fundraising. Several Web sites are offering a new form of e-commerce that gives
money to schools for Internet purchases made by family and friends. Each
service works a little differently. The Schoolpop.com site offers rebates to
schools for purchases made at several prominent e-stores, including Amazon and
eToys. "We always need to do fundraising -- and our community is very wired,"
said Larry Curb, principal at Miller Junior High School in San Jose. "It seemed
to make sense."
[SOURCE: San Jose Mercury News, AUTHOR: S.L.Wykes]
(http://www.mercurycenter.com/svtech/news/indepth/docs/school062899.htm)
BROADCASTING
TV STATION'S LIBEL TRIAL REVISITS OLD MURDER CASE
Issue: Media Law
Who can journalists trust to gather information if they cannot trust a public
official? That is the legal question in a Minnesota case. Terri Stokes is suing
a local detective, Anoka County and WCCO-TV, a station owned by CBS, for libel
because the detective gave his theory of the murder of Terri's husband to
WCCO-TV. The detective told reporters of the station that Terri had killed her
husband with a shotgun blast while he slept in their bed. Six years later,
Terri Stokes' libel suit claims she has spent the better part of six years
fending off media and police inquiries regarding the incident. Media law
experts say that holding a news organization liable for the words of a public
official speaking on the record could pose an unsettling precedent. The defense
has already lost several key battles, most notably a ruling last fall denying a
defense motion to dismiss the case. Federal District Judge David Doty rejected
the defense's contention that repeating statements in the public record or made
by government officials is protected speech. The judge called the broadcast
"highly slanted" and said the reporter failed to adequately question the
detective's exaggerated statements.
[SOURCE: New York Times (C10), AUTHOR: Andrew Bluth]
(http://www.nytimes.com/yr/mo/day/news/financial/minn-libel-trial.html)
HEARINGS ON PUBLIC BROADCASTING AND CONSUMER/INVESTOR ACCESS
Wednesday, June 30, 1999 at 10:00 a.m. in 2123 Rayburn House Office Building
the
Subcommittee on Telecommunications, Trade, and Consumer Protection will hold a
hearing on the Corporation for Public Broadcasting Authorization Act of 1999.
Also at 10:00 a.m. in 2322 Rayburn House Office Building the Subcommittee on
Finance and Hazardous Materials will hold a hearing on H.R. 1858, the Consumer
and Investor Access to Information Act of 1999.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/schedule.htm)
MERGERS
US WEST INC. AND FRONTIER TO WEIGH BID
Issue: Merger
Frontier's board will convene today to consider the new bid from Qwest
Communications International, which is now about 10% higher than Global
Crossing $43 million bid. Frontier along with US West must decide if the
sweetened deal of $47 million is worth leaving their verbal commitment with
Global Crossing. Global Crossing argues that their bid can be completed sooner
because the merger review is already underway. They also believe they face
fewer regulatory and antitrust problems with the government as Bellsouth,
another Baby Bell, is providing part of Qwest's bid through their partial
ownership of the company. Global Crossing sees the concessions that would have
to be made to satisfy the Justice Department as a problem which could severely
cost US West and Frontier in the end. Qwest produced a letter from a member of
the FCC stating that Qwest dropping their long distance service in the US West
territory was sufficient for the deal's completion. Global Crossing says it
does not plan to immediately raise their bid for the two companies. (OK, I am
still waiting for Heather Locklear to come in and clear this up.)
[SOURCE: Wall Street Journal (B1), [AUTHOR: Miriam Jordan]
(http://wsj.com/)
LUCENT, CISCO SETTLE
Issue: Technology
Lucent Technologies Inc., the telephone-equipment maker, and Cisco Systems
Inc., the top Internet-equipment builder, have agreed to settle a year-old
patent-infringement lawsuit. Lucent sued Cisco last June, alleging the company
had infringed on eight key Lucent data-network patents. Cisco responded with
its own countersuit. The settlement announced Friday states that Cisco and
Lucent agree to cross-license each other's technology. The two companies did
not disclose further settlement terms. Both sides expressed their satisfaction
with the outcome. Lucent was especially content because as of Thursday they had
completed their $25.2 billion acquisition of Ascend Communications Inc. -- a
Cisco rival -- gaining access to networking equipment that will enable Lucent
to compete more effectively in the data world.
[SOURCE: CNN, AUTHOR: Reuters]
(http://cnnfn.com/1999/06/26/technology/wires/lucent_cisco_wg/)
ANTITRUST
MICROSOFT, RUNNING SCARED
Issue: Anti-Trust
The government argues Microsoft has a monopoly because most personal computers
use Windows. But then why are software developers rushing to write applications
for Linux, an upstart operating system with about 15 million users? And why
hasn't Microsoft sought higher prices? The government says that Microsoft
charged less to computer makers that helped persuade their customers to use
Microsoft products and rewarded companies that helped with distribution. This
is true. It is also legal; ask the cereal company that pays supermarkets to
display its Frootios on shelves near the checkout counter. The government also
complains that Microsoft forced computer makers to install Windows without
major changes -- just as Ford would prevent car dealers from clipping off the
tail off the Mustang pony insignia. Since the trial began, the government has
no doubt shown that Microsoft has had very bad manners. But it certainly hasn't
proved that Microsoft violated the antitrust laws by harming consumers. It's
time for the antitrust division to give up yet another misguided effort to
micromanage the fast-moving information-technology business.
[SOURCE: New York Times (A21), AUTHOR: Ronald A. Cass (Dean of Boston
University School of Law and Microsoft Consultant)]
(http://www.nytimes.com/yr/mo/day/oped/28cass.html)
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