DIGITAL DIVIDE
Spanning the 'Digital Divide' (WP)
OWNERSHIP
NBC Holds Talks to Buy an Interest In Paxson Following FCC Rules
Change (WSJ)
U.S. Investors Are Tuning In For Deutsche Telekom Sale (WSJ)
TELEPHONY
So, How Much For Ratepayers? (ChiTrib)
PC's Taking Growing Share of Phone Service (USA)
Nextel Reaches Pact with Government to Buy Next Wave Licenses (WSJ)
INTERNET
SBC To Offer E-mail Device That Needs No PC
E-Commerce Group Forms To Battle Internet Fraud (WSJ)
Report Questions Government Efforts Computer Crime (Cybertimes)
LEGISLATION
High-tech hypocrisy on visas, Y2K legislation (SJM)
DIGITAL DIVIDE
SPANNING THE 'DIGITAL DIVIDE'
Issue: Digital Divide
[Op-Ed] The recent announcement of a $35 million dollar venture to create
BET.com -- a portal oriented to African Americans -- has left some people
wondering: are there enough blacks on the Net to make it work? The recent
Commerce Department study, "Falling Through the Net" -- which reported that
47 percent of whites own computers, more than twice the rate for blacks --
raises the question of whether BET can have the success on the Internet as
it has had on TV, if black computer ownership continues to lag. Founder of
the BET network Bob Johnson, says Rasberry, is aware of the racial
"digital divide." Johnson is also aware of the growing number of efforts
to combat it, and his site will help get African Americans to get online and
join the Information
Revolution .
[SOURCE: Washington Post (A35), AUTHOR: Willaim Rasberry]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-08/20/010l-082099-idx.html)
OWNERSHIP
NBC HOLDS TALKS TO BUY AN INTEREST IN PAXSON FOLLOWING FCC RULES CHANGE
Issue: Ownership/Broadcast
General Electric's NBC broadcast network is reportedly negotiating to
purchase a stake of the Paxson Communications, the upstart television
network. People close to the deal say that NBC may buy a 32% stake in the
company, which would be worth more than $300 million at Paxson's current
stock-market price. Analysts believe NBC may use Paxson stations as leverage
in negotiations with current affiliates. NBC President Robert Wright has
threatened to convert NBC from broadcast to cable in cities where the
network can't negotiate an acceptable financing deal with its local
affiliate. NBC and Walt Disney's ABC are trying to revamp their contracts
with affiliates to force them to shoulder more of the network's programming
costs.
[SOURCE: Wall Street Journal, A3, AUTHOR: Kyle Pope]
(http://interactive.wsj.com/articles/SB935105063399057334.htm)
U.S. INVESTORS ARE TUNING IN FOR DEUTSCHE TELEKOM SALE
Issue: Ownership/Cable/International
U.S. investors are getting ready to buy into Deutshe Telekom's cable
network, which is one of the largest in the world. The cable network's
estimated value is $10 billion and serves about 17 million homes. An
estimated upgrade for the networks to offer broadband services is estimated
at $2.5 billion. Microsoft is in talks to partner with Deutsche Bank and
bid for the German cable properties. Another player is former the president of
US West's International Operations, Richard Callahan. He is partnering with
several financial backers and would run the company if they win. Other
bidders include Mannesmann, German newcomer Viag Interkom, Robert Bosch and
United Pan-European Communications (which is 7.8%-owned by Microsoft but
isn't part of the current Microsoft negotiations). Initial bids are due today.
[SOURCE: Wall Street Journal, AUTHOR: Gautam Naik and William Boston]
(http://interactive.wsj.com/articles/SB935102274936234921.htm)
TELEPHONY
SO, HOW MUCH FOR RATEPAYERS?
Issue: Mergers
When the $60 billion SBC-Ameritech merger was first announced, Ameritech
shareholders learned that they would be paid a $13 billion premium. Now 3 of
5 Illinois Commerce Commission commissioners agree that all of the savings
generated by the merge should go to the ratepayers who paid to build
Ameritech's system. The question, then, will be: how much? The savings are
expected to stem from combining administrative, legal, operating and other
functions of the two telephone companies to eliminate waste and heighten
efficiencies. [Wonder how much they will save by not having to compete
against one another?] Parties filing comments on the case have estimated the
savings as low as $30 million and as high as $473 million. Today, the ICC
commissioners are expected to discuss what conditions on the merger they
might impose; Chairman Richard Mathias hopes to reach a consensus, write and
vote on an order before Labor Day. The FCC is also reviewing the merger and
is plans to act by early September.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/business/printedition/article/0,2669,SAV-99082001
95,FF.html)
PC'S TAKING GROWING SHARE OF PHONE SERVICE
Issue: Internet Telephony
Yet another alternative to regular phone service is coming of age as people
are using their PC's to make free telephone calls to other PC users. "The
regular phone network is going to be pressured to lower rates or do away
with the concept of long distance," says Alan Buck of PhoneFree.com.
PhoneFree.com has a no-cost service and has 700,000 users. International
Data Corporation says these free PC phone service are expected to generate
$500 million in revenue this year and is expected to reach $18 billion in
2004. Earlier versions operated like walkie-talkies where only one person
could talk at once -- but now the technology handles calls just like a phone.
Another boost for the technology is that Internet connections are faster so
the sound quality is comparable to traditional phone service.
To make these Internet calls, both people need a PC with a microphone,
speakers, special software and an Internet connection. Other companies
offering the service and products is VocalTec (www.vocaltec.com/products)
and Net2phone (www.net2phone.com).
[SOURCE: USA Today, 1A, AUTHOR: Steve Rosenbush]
(http://www.usatoday.com)
NEXTEL REACHES PACT WITH GOVERNMENT TO BUY NEXT WAVE LICENSES
Issue: Wireless
Nextel Communications, a wireless phone company, outlined an agreement
negotiated with the Federal Communications Commission and the Department of
Justice to buy the wireless licenses of NextWave Telecom. NextWave, a
Hawthorne, N.Y. company, filed for bankruptcy protection in June 1998. The
FCC auctioned off licenses to the spectrum Nextwave owns in 1996. Some of
the licenses were set aside for what the FCC called "designated entities,"
or small, entrepreneurial companies. Most of NextWave's licenses fall under
this classification. But NextWave could not come up with the money it bid
for the licenses. Details of the agreement between Nextel, the FCC and the
DOJ were outlined in Securities and Exchange Commission filings that Nextel
made Wednesday. Under the agreement, the FCC would receive at least $2.1
billion for the wireless spectrum. The payment would include a $1.59
billion minimum cash payment and $499 million in deposits made by or on
behalf of NextWave's debtors. Should another bidder top Nextel's offer,
Nextel would receive a termination fee equal to 0.75% of any competitive
bid accepted by the FCC and Justice Department, the filing said. NextWave
opposes Nextel's deal because it would give Nextel licenses that were set
aside for small companies.
[SOURCE: Wall Street Journal, B3, AUTHOR: Nicole Harris]
(http://interactive.wsj.com/articles/SB935105887117276456.htm)
INTERNET
E-COMMERCE GROUP FORMS TO BATTLE INTERNET FRAUD
Issue: E-commerce/Security
Analysts estimate fraudulent Internet and electronic-commerce transactions
now account for as much as half of all credit-card fraud (so, a super squad
of mystery men has banded together to make cyberspace a safe place to shop).
HNC Software Inc. has enlisted five providers of e-commerce services, an
Internet Fraud Prevention Advisory Council, help with an effort to convince
other online merchants to participate in HNC's anti-fraud efforts. The
Advisory Council also includes CyberCash, ShopNow.com, Ebit.Net and Signio
Inc. (formerly PaymentNet). For transactions in the physical world, HNC has
long had reciprocal relationships under which credit-card issuers, such as
banks, provide HNC with transaction records from more than 260 million
accounts. The data are added to a massive database that is used to build
detailed profiles of fraudulent activity. Each potential transaction is then
given a score from one to 1,000 that indicates the probability of fraud.
Merchants set their own thresholds for accepting or rejecting transactions,
or for seeking additional information from customers. HNC expanded its
services into cyberspace in May.
[SOURCE: Wall Street Journal, B3, AUTHOR: David Bank]
(http://interactive.wsj.com/articles/SB935105291846841312.htm)
SBC TO OFFER E-MAIL DEVICE THAT NEEDS NO PC
Issue: InfoTech
SBC said yesterday that the company will offer a new e-mail device, called
eMessage. The device is inexpensive and will allow people without a PC to
use e-mail. eMessage is a ten inch by seven inch machine, resembling a hand
held computer that attaches to the phone line the same way an answering
machine does. The device costs under $180 and e-mail service will cost
$10/month -- and could be even less if customers prepay. Messages can be
read and created offline and then sent by hooking up to the phone line in
under a minute. eMessage was developed by CIDCO, the largest maker of caller
identification devices. Kevin Hause, an International Data Corporation
analyst, said that this device could complement the PC as well -- because
people would not have to reboot their computers just to send a message. SBC
said they would test eMessage in Texas and California next month and then
expand to its other customers.
[SOURCE: San Jose Mercury News, AUTHOR: Ilaina Jonas]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/770934l.htm)
REPORT QUESTIONS GOVERNMENT EFFORTS COMPUTER CRIME
Issue: Security
Despite some recent high profile arrests and convictions for computer
criminals, some experts question the government's ability to track and
prosecute high-tech crime. "We are hearing a lot of discussion from this
administration about the problem of computer crime," said David Banisar, a
lawyer who specializes in computer law "But that high level of concern does
not mesh well with the actual number of investigations and prosecutions." In
a recent article on prosecutions of high-tech crime in Criminal Justice
Weekly, Banisar reported that of the 417 cases of computer fraud referred to
federal prosecutors, the government only chose to prosecute 83, or 20%.
Banisar noted that well over 50% of all criminal cases referred to the
Government were chosen for prosecution. In defense of the Government's
record, David Green, deputy chief of the Computer Crime and Intellectual
Property section of the Department of Justice, explained that the
statistics on computer crime "can be misleading." Many cases referred to
federal attorneys as computer crimes are eventually prosecuted under
different laws, like wire fraud or child pornography, and therefore would
not show up as a "computer fraud" prosecution, and still other cases are
turned over to state authorities, said Green. "These cases are really
challenging, but I think we are making tremendous progress," he said.
[SOURCE: CyberTimes, AUTHOR: ]
(http://www.nytimes.com/library/tech/99/08/cyber/cyberlaw/20law.html)
LEGISLATION
HIGH-TECH HYPOCRISY ON VISAS, Y2K LEGISLATION
Issue: Legislation
(Editorial) Most days, government regulations are the favorite punching
bags of the high-tech industry. Except, that is, when they are looking for
a federal favor. One recent example is the industry's push for an increase
in the number of H-1B visas allowed for foreign workers -- to help combat
current labor shortages. Gilmore suggests that qualified high-tech
workers should be granted visas to work in the U.S., but that tech industry
should be expected to give back something in return: "a promise, backed by
real money, to help train and retrain the Americans who have the smarts and
will to do these jobs." None of the current legislation lobbied for by
high-tech firms, however, include any such provisions. Recent Y2K
legislation, notes Gillmore, also favors industry interest over that of
consumers, protecting vendors from liability for Y2K problems. "It all
makes you wonder: What would the technology crowd do without government
interference?" he concludes.
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
(http://www.mercurycenter.com/svtech/columns/gillmor/docs/dg082099.htm)
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...and we are outta here. Have a great weekend.