Communications-related Headlines 8/10/98

ELECTRONIC COMMERCE
Web Concern Gets Patent For Its Model of Business (NYT)
Affiliate Networks: Letting Other Sites Do Your Marketing (NYT)

UNIVERSAL SERVICE
Technology Will Kill Telecom Taxes (WSJ)

INTERNET
Privacy and the States (WP)
A New Battle Shapes Up Over Internet Smut (WP)

TELEVISION/CABLE
Television News Spinning Out of Control (ChiTrib)
Local News Gets Rocky Review (B&C)
Patents: (NYT)
Getting More Promotional Time From TV
Using the Set to Check On Fido's Whereabouts
Taking TV 3-D From Inside the Set
With Dish on the Plane, Fliers Can See TV Live
Opposites Detract in Video Inquiry (B&C)

CAMPAIGNS/FREE AIRTIME
Daniels Backs Free Airtime (B&C)

ED TECH
Internet Camp Helps Children Expand Skills (ChiTrib)

FCC
FCC Launches Inquiry, Proposes Actions to Promote the
Deployment of Advanced Telecommunications Services By
All Providers (FCC)
FCC Announces Significant Progress on 1998 Biennial Review (FCC)
Commission Proposes to Reform International Settlements Policy (FCC)
Commission Revises Program Access Enforcement Process (FCC)
FCC Gets Tough on Program Access (B&C)

RADIO
Top 10 Metros Control 23% of U.S. Buying Power (B&C)
Radio News: Many Sizes Fit All (B&C)

LOCAL/LONG-DISTANCE
Phones Function on the Day (WP)
FCC Allows Telmax to Operate in U.S. Through a Joint Venture
With Sprint (WSJ)

SATELLITE
Deals to Move Global Positioning Technology Toward Everyday Use (NYT)

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ELECTRONIC COMMERCE
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WEB CONCERN GETS PATENT FOR ITS MODEL OF BUSINESS
Issue: Electronic Commerce
Priceline.com will receive a patent today for "buyer-driven commerce."
Priceline.com is most well-know for allowing consumers to name their own
price for airline tickets. The "reverse auction" model used by Priceline.com
"is such a narrowly specific approach to online business that analysts said
few other Internet commerce companies were likely to be significantly
restricted by the patent," Lewis reports. But it is an example of the Patent
Office's willingness to protect a business model. In the Priceline model,
buyers submit a bid, known as a "conditional purchase offer," to buy goods
or services -- airline tickets or automobiles, for example -- from unknown
sellers at a certain price, and they guarantee the offer with a credit card.
Priceline presents the offers to the sellers, who then have the option of
either fulfilling or rejecting the bids, or making a counteroffer. Priceline
then completes the transaction.
[SOURCE: New York Times (D1,D5), AUTHOR: Peter Lewis]
http://www.nytimes.com/library/tech/98/08/biztech/articles/10priceline.html

AFFILIATE NETWORKS: LETTING OTHER SITES DO YOUR MARKETING
Issue: Electronic Commerce
Traditional "word-of-mouth" referrals are being transformed on the Web into
"word-of-mouse" referrals by "affiliate networks." The most notable example
is probably Amazon.com Associates Program which recently signed up its
100,00th affiliated website. For any purchase that results from a link on
their Website, an affiliate earns 15% on the sale. Although Amazon.com's
network was the first and is the largest, hundreds more have cropped up on
the Internet. There's little cost to affiliates which only need to maintain
the link offered by the retailer.
[SOURCE: New York Times (D3), AUTHOR: Evan Schwartz]
http://www.nytimes.com/library/tech/yr/mo/biztech/articles/10view.html

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UNIVERSAL SERVICE
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TECHNOLOGY WILL KILL TELECOM TAXES
Issue: Telephony
For over 2 decades the FCC has taxed basic telephone services in order to
subsidize "universal service" programs that help provide telecommunications
to those who would not otherwise have access. Mr. Goldman believes that
FCC's current policies to aid the undeserved are unfair because they force
telephone users to bear "the discriminatory burden of universal service,
E-rate, and other telecommunications social programs." Current phone taxes
are contingent on distinction between "basic" and "enhanced" services; the
later of which is exempt from government regulation. New technologies,
however, are blurring the line between these two categories of service,
disturbing the regulatory system as we know it. Sprint's Integrated
On-demand Network (ION), is an example of a service that converts all voice and
data into digital 'bits' which are considered enhanced service -- and
therefore exempt from regulation and taxation. Goldman hails the new
technology as a way to get around taxes that he believes make no economic
sense in the first place.
[SOURCE: Wall Street Journal (A14), AUTHOR: Ira Goldman]
http://wsj.com/

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INTERNET
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A NEW BATTLE SHAPES UP OVER INTERNET SMUT
Issue: Internet/Content
The debate continues over how to protect kids and free speech from Internet
smut. Two recent bills, intended to shelter children from harm online, have
provoked vocal challenges from civil liberties advocates who claim the
measures violate the First Amendment. One bill is a revision of the
Communications Decency Act (CDA) that was struck down by the Supreme Court in
1996. Their ruling concluded that the Internet is "the most participatory
form of mass speech yet developed," and therefore deserving of "the highest
protection from governmental intrusion." The other bill will require schools
and libraries receiving E-rate discounts to install blocking software.
Supporters of the bills are confident that they will withstand
constitutional scrutiny, while others, such as Sen. Patrick Leahy (D-Vt) feel
the legislation would place "an unacceptably heavy burden on protected
speech." Sen. Leahy advised "that in a rush to protect our children, we
should not unnecessarily chill the freedom of expression that occurs
online