INTERNET
Small Internet Providers Survive Among the Giants (NYT)
The New World of Search Engines (SJM)
Conventional Retailers Use Web to Improve Service (CyberTimes)
Microsoft, Partner Aim to Cut Online Fees in Japan (WP)
PUBLISHING
Media: Newspaper Deal in San Francisco Revives Regulation Debate (NYT)
Book Industry Study Shows Sales Increased 4% Last Year (NYT)
MERGERS
AT&T-BT Venture Gets Security Review (WSJ)
WIRELESS
Satellites May Come to the Rescue for 911 (ChiTrib)
Laptops, Cell Phones Can Leak Secrets (USA)
INTERNET
SMALL INTERNET PROVIDERS SURVIVE AMONG THE GIANTS
Issue: ISPs
Despite predictions that the market for Internet service providers (ISPs)
would consolidate around America Online, Microsoft and telephone companies,
the industry remains diverse and still holds possibilities for competitors
-- even mon-and-Michael Cloran operations [I had to plug Chicago provider
Enteract.com] And the AOL business model isn't the only one with free access
popular in Europe and spreading to the US and other discounted plans offered
by hardware manufacturer/service provider teams. Although AOL remains #1 in
the market -- with 17 million subscribers and the closest competitors with
less than 2 million -- AOL's market share is not growing as it has in recent
years. Boardwatch Magazine reported growth of 36% in its directory of ISPs
in the US, Canada and the Caribbean. Of the 6,511 ISPs listed, 5,895 offer
local access numbers in fewer than 25 area codes -- only 616 offer regional
or national access.
[SOURCE: New York Times (C1), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/16net.html)
THE NEW WORLD OF SEARCH ENGINES
Issue: Internet Content
It is increasingly likely that at least some of the results a search
conducted on one of the Internet's many search engines will be paid
advertisements. Companies like Lycoos and Yahoo are feeling increasing
pressure to gain revenue from the navigational services they provide. Some
analysts say that the quality of portals have suffered as a result of the
drive to turn profit. Jakob Nielsen, co-founder of the Nielsen Norman
Group, a company that studies the usability of technology, says that as
portals increasingly turn their attention to adding new features, "they have
been failing in their core mission of helping people find things." Many
users are annoyed by the large volume of commercial sites that are
generated by their searches. "When I look at the results of my searches, I
expect that the listings would come up strictly as a function of the
relevance to my search inquiry," says Gary Allen, a San Jose resident.
"There's an expectation that I'm going to get unbiased information. But
that isn't the case."
[SOURCE: San Jose Mercury News, AUTHOR: Monus Janah]
(http://www.mercurycenter.com/svtech/news/indepth/docs/search081699.htm)
CONVENTIONAL RETAILERS USE WEB TO IMPROVE SERVICE
Issue: E-Commerce
As some "brick-and-mortar" businesses live in fear of becoming casualties
of the e-commerce revolution, others are using the Internet itself to fight
the rising tide of cyber retail. "We've been dealing with a lot of
companies almost paralyzed with fear about the Internet," said Melissa
Bane, an E-commerce analyst with the Yankee Group, an Internet consulting
firm. Other companies, according to Bane, are using the Internet in their
stores to expand their customer base. Sears, Borders Books, and the Gap are
among major chains that have begun to install Internet kiosks in many of
their stores. The interactive technology allows consumers to access
detailed information about products and availability. "I am sure that 10
years from now, every major retail company will have an Internet-enabled
device in the store," said Rick Vanzura, president of Borders Online, who
is in charge of the company's effort to install Internet kiosks in each of
its 270 superstores.
[SOURCE: CyberTimes, AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/99/08/cyber/commerce/16commerce.html)
MICROSOFT, PARTNER AIM TO CUT ONLINE FEES IN JAPAN
Issue: Internet/ International
While Japanese may be crazy about the Internet, many are reluctant to log
on. With local phone charges around 9 cents for every three minutes,
surfing the Net can be an expensive habit. Many Japanese Internet experts
claim the recently announced joint venture between Microsoft and
Japan's big Internet investor Softbank, intended to circumvent Nippon
Telegraph and Telephone's near monopoly to offer lower-cost online access,
is a sign of Japan's rapidly changing Internet environment. Japan, however,
is still far behind the U.S., where people are more than twice as likely to
have Internet accounts. Some people think wireless technology may offer the
best hope for bringing Japan online. Almost 40% of all Japanese households
have cell phones. "There's a
tremendous potential for leapfrogging with these technologies," says
Merrill Lynch's Negi.
[SOURCE: Washington Post (A1), AUTHOR: Clay Chandler]
(http://www.washingtonpost.com/wp-srv/digest/daily/aug99/jnet16.htm)
PUBLISHING
MEDIA: NEWSPAPER DEAL IN SAN FRANCISCO REVIVES REGULATION DEBATE
Issue: Newspapers
The Newspaper Preservation Act of 1970 aimed to help struggling newspapers
around the country by allowing joint operating agreements (JOAs) which
allowed two newspapers to share costs -- like printing and distribution --
and revenues -- like advertising and circulation. In cities like San
Francisco, JOAs kept a second, weaker paper in business. In theory, the two
papers would continue to compete and they would be able to devote more of
their resources to content providing the community with two distinct
editorial voices. But with the sale of The San Francisco Chronicle to the
Hearst Corporation, owner of archrival San Francisco Examiner, some are
questioning how effective the law has been and how effective it is nearly 30
years after being written. Donna Patterson, a deputy assistant attorney
general in the Justice Department's antitrust division, said, "I guess
historically it's been a success," she said, "because it's preserved voices
longer than they would otherwise have been preserved." Barringer ends with:
The new media landscape and the growing competition for advertising dollars,
make it harder for a weak newspaper to survive, and make its survival less
urgent, [Michigan State Prof Stephen] Lacy believes. "I'm not sure I'd call
the Newspaper Preservation Act a failure," he said. "Just a non-success.
People back then did not realize that this would not make a difference in
the long run."
[SOURCE: New York Times (C12), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/yr/mo/day/news/financial/media-column.html)
BOOK INDUSTRY STUDY SHOWS SALES INCREASED 4% LAST YEAR
Issue: Publishing
Book sales rose 4% last year and the Book Industry Study Group is predicting
that sales will rise 2% annually through 2003. "We don't see the total
market expanding in any dramatic shape for five years," said Albert Greco,
an associate professor of business at Fordham University who helped prepare
the projections. "If you say 10 years, it might be even more modest. I think
people are reading less, and I just don't see that we're going to turn the
corner and become a nation of readers." "We've seen a strong market since
last summer -- all publishing divisions, all formats, all categories," said
Peter Olson, the chief executive of Random House, the Bertelsmann AG unit
that is the largest trade publisher in the United States. Olson gave credit
for some of the strength to online retailers that now account for roughly 4
to 5 percent of the company's sales. "I think that the attention that
Amazon.com and Barnesandnoble.com have generated has increased interest in
books in general, and that has led to buying not just online, but in
stores," Olson said.
[SOURCE: New York Times (C1), AUTHOR: Doreen Carvajal]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/16book.html)
MERGERS
AT&T-BT VENTURE GETS SECURITY REVIEW
Issue: Mergers/Alliances
AT&T and British Telecommunications (BT) are under intense scrutiny by the
Federal Bureau of Investigations and the Justice Department. Both federal
agencies were asked to comment on why they are investigating this deal
before its approval but both refused to comment. The AT&T/BT venture is
going to provide international companies with voice, video and data
services. In the past, the FBI and Justice department have looked into these
deals to make sure
the agencies can wiretap and to protect the privacy of U.S. citizens. AT&T
says everything is on track and the deal should go through in October.
[SOURCE: Wall Street Journal, B6, AUTHOR: Kathy Chen and Rebecca Blumenstein]
(http://interactive.wsj.com/articles/SB93475090510192539.htm)
WIRELESS
SATELLITES MAY COME TO THE RESCUE FOR 911
Issue: Wireless/Safety
You're in the middle of who-knows-where, in trouble, you call 911 on your
wireless phone and the public safety official says, "Where are you?" For
many of the 40,000 emergency phone calls placed by wireless users each year,
they just don't know. Global positioning satellite technology (GPS) may be
the long-term answer -- it can locate someone within 5 yards in the best
circumstances. But for the 70 million wireless phones in use, GPS is not an
answer in the near future. A look at the variety of technologies that could
serve today's (and yesterday's) phones and the tough choice the Federal
Communication Commission must make to sort them out.
[SOURCE: Chicago Tribune (Sec4, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99081600
05,FF.html)
LAPTOPS, CELL PHONES CAN LEAK SECRETS
Issue: Security
The danger of leaking company and confidential information is increasing as
people use their cell phones and computers in places other than their homes
and offices. A survey by Hyatt found 71% of business travelers use voice
mail, 62% use laptops and 45% rely on cell phone while on the road. People
tend to be louder on a cell phone in public when making business deals --
not realizing their conversations are being overheard by many. Prime spots
to gather such secrets are airplanes' business sections, commuter trains
and trade shows.
[SOURCE: USA Today, 4B, AUTHOR: Stephanie Armour]
(http://www.usatoday.com)
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Welcome back, Rachel. Thanks for the help, Purdy.