Communications-related Headlines for 8/24/99

DIGITAL DIVIDE
Urban League Tech Training Center (NTIA)
A Change in Attitudes Will Help Asian Women Aspire to Be Techies (WSJ)

INTERNET
How to End the World Wide Wait (WSJ)
Earthlink and GTE in Web-Access Deal (NYT)
Chinese Cable TV Plans Leap Into Internet (SJM)
Administration Appoints E-Commerce Adviser (CyberTimes)
Info Culture: It All Ads Up (ChiTrib)
Feature Film to Be Produced for Direct Release on the Web (NYT)

TELEPHONY
SBC Communications to Launch Phone-Service 'Bundles' in Two Markets to
Compete with AT&T (WSJ)
Phone Wars (WP)
Companies Team on Wireless Standards (NYT)

TELEVISION
Nonprofits Courting DBS for Set-Aside Channels (Current)
Putting the Lid On Cable? (B&C)

DIGITAL DIVIDE

URBAN LEAGUE TECH TRAINING CENTER
Issue: Digital Divide
On August 24 at 10am, Commerce Secretary William Daley will visit Urban
League Tech Training Center with Mayor Williams and Private Sector
Representatives. Greater Washington Urban League's Information Processing
Training Center, 6017 Chillum Place, NE (202-291-1230). Visit will highlight
computer technology training program and include discussions with summer
program students at 21 year-old Urban League center; announcements by
corporate leaders of national and local programs to address digital divide
in emerging markets and underserved communities. For more info contact
Morrie Goodman (202-482-4883) or Mary F. Hanley (mhanley( at )ntia.doc.gov
202-482-2075)
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/chillu82399.htm)

A CHANGE IN ATTITUDES WILL HELP ASIAN WOMEN ASPIRE TO BE TECHIES
Issue: International
Asian women in increasing numbers are logging onto the Internet, as an
article last month in the Wall Street Journal documented. Mark Mechem,
deputy director in Beijing of the U.S. Information Technology Office, wrote
an essay about the trend. "Now that young Chinese women are coming online,"
he wrote, "we have at least one of the necessary preconditions in place to
really begin driving Internet growth in China." However, Asian women still
face many factors within their culture that push them away from technology
-- especially parental attitudes. Sesser interviewed Yolanda Chan, a native
of Hong Kong, who heads Microsoft's Hong Kong Partner Business Group and
Business Solutions Group. Chan said that despite her parents' objections to
her studying technology, she loved PCs and programming too much. She said at
first her father was negative -- but now he clips every article with her
name in it. Sesser thinks it attitudes still need to change in Asia for
women to be accepted as full equals in education, so that they can develop
computer skills, and in technology enterprises, so that they can rise on the
basis of their talents as rapidly as men.
[SOURCE: Wall Street Journal, AUTHOR: Stan Sesser]
(http://interactive.wsj.com/articles/SB935421548883691950.htm)

INTERNET

HOW TO END THE WORLD WIDE WAIT
Issue: Broadband
[Op-ed] Federal Communication Commission Chairman William Kennard
discusses the broadband revolution saying, "anyone who has ever gone
online knows, the World Wide Web is too often the World Wide Wait. To take
full advantage of the Internet, we need "broadband" connections -- fatter
pipes to handle the crush of information and complex applications now
available." Chairman Kennard recognizes the calls for 'open access' to cable
broadband networks and the recent decisions in Portland and Broward County,
Florida to use local franchise authority to open AT&T's cable networks.
Kennard continues by stating why the FCC filed a friend-of
the court-brief in the Portland case regarding open access. But he argues
that we cannot regulate against problems that do not exist yet. He suggests
a non-regulatory route to ensuring the fast
deployment of broadband: "we [the FCC] are taking steps to ensure that there
are many competitors in the marketplace, not just cable. We've made more
spectrum available to wireless operators. We've made it easier for emerging
competitive local phone companies to plug into the existing phone network in
order to provide high-speed Internet access using a promising new technology
known as digital subscriber lines. And we've decided to allow the cable
companies to go ahead with their efforts to deploy broadband access without
pre-emptive regulation, even as we closely monitor the marketplace for
anti-competitive behavior." Chairman Kennard argues that this policy is
working: in the 2nd quarter of this year, the number of DSL subscribers
doubled. "Internet users want and expect choice, and they will not be
satisfied unless they get it. A national policy of openness and competition
has brought it to them so far; it should be our policy for the future as well."
[SOURCE: Wall Street Journal, A18, AUTHOR: FCC Chairman William Kennard]
(http://interactive.wsj.com/articles/SB935445231530013851.htm)

EARTHLINK AND GTE IN WEB-ACCESS DEAL
Issue: Broadband
In a move to expand high-speech access to the Web, the Internet service
provider Earthlink and GTE have entered into a joint venture to offer DSL
(digital subscriber line) service in over 20 markets by the end of the
year. DSL technology, which operates over traditional phone lines, gives
users access at speeds up to 25 times faster than is possible with dial-up
modem connections. At around $50, DSL subscriptions are increasingly
popular. "We're seeing a trend of existing users moving towards high-speed
access," Jon Irwin, Earthlink senior vice president of broadband services.
[SOURCE: New York Times (Online), AUTHOR: Reuters]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/24earthlink.html)

CHINESE CABLE TV PLANS LEAP INTO INTERNET
Issue: International/Broadband
Fang Hongyi, of the Chinese State Administration of Radio Film and
Television (SARFT), said that his agency would challenge a monopoly by
telephone companies on Internet service by offering high-speed access over
cable television networks. "We're going to take the Chinese people into the
Internet age in one shot," said Fang. He did, however, concede that there
were giant political and financial barriers that need to be over
surmounted. Most difficult perhaps, it will need approval from the Ministry
of Information Industry (MII) -- the telecommunications monolith whose
territory the plan threatens. The plan does have some things in its favor,
including the fact that there are 80 million cable subscribers in China.
The new service would address the two most common complaints by China's
Internet users -- high fees and slow connections, Fang said.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/026956.htm)

ADMINISTRATION APPOINTS E-COMMERCE ADVISER
Issue:Ecommerce
Elizabeth B. Echols, a 39-year-old attorney and former investment banker,
has been named executive director of the Electronic Commerce Working Group,
a federal interagency task force. The working group was created by President
Clinton's former Internet czar, Ira C. Magaziner. It is chaired by Vice
President Gore's chief domestic policy advisory, David Beier. "My job is
really to coordinate the numerous agencies that are involved," Echols said
of her new role. "There are at least 12 federal agencies that are working in
electronic commerce. The idea is to have one central place at the White
House where we can work together and shape one Administration policy.
Obviously, the different agencies will bring their expertise and mandates to
the table. We want to make sure we have one coordinated, cohesive policy."
Policy priorities include broadband, consumer protections online and
creating a global e-commerce framework.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing (jeri( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/08/cyber/capital/24capital.html)

INFO CULTURE: IT ALL ADS UP
Issue: Internet Advertising
What once was idealistically envisioned as a kind of global public square,
Keller writes, instead has become just another giant billboard, with
non-advertising material crowded into ever smaller spaces. The big problem
is the eagerness for non-commercial sites to join the ad parade. "Yes, most
people are savvy enough to figure out the difference between editorial
content and advertising," Keller writes. "The point is, though, that they
shouldn't have to; the two realms ought to remain separate. Some spaces, in
fact, should remain ad-free altogether, and a university's informational Web
site is one of those spaces. Advertisers will have plenty of time later on
to etch their catchy mantras onto the cerebellums of ever-so-willing
students." Keller quotes Oscar Wilde by ending: we now know the price of
everything and the value of nothing.
[SOURCE: Chicago Tribune (Sec 5, p.3), AUTHOR: Julia Keller]
(http://chicagotribune.com/leisure/tempo/printedition/article/0,2669,SAV-990
8240039,FF.html)

FEATURE FILM TO BE PRODUCED FOR DIRECT RELEASE ON THE WEB
Issue: Arts
Metafilmics, a four-year-old studio that specializes in spiritual
entertainment, may be the first company to produce a film that will be
initially released on the Web. The company has plans to distribute a 40
minute film, "The Quantum Project," through Sightsound.com, a Web site that
provides downloadable movies for a fee. Several start-ups are attempting to
offer films though the Internet, but technology still has some way to go.
Full-length movies can take hours or days to download and the picture
quality leaves much to be desired. There is hope that as broadband
Internet connections become more ubiquitous, those problems will be
alleviated and filmmakers will have a viable new outlet for their products. .
[SOURCE: New York Times (A1), AUTHOR: Andrew Pollack]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/24film.html)

TELEPHONY

SBC COMMUNICATIONS TO LAUNCH PHONE-SERVICE 'BUNDLES' IN TWO MARKETS TO
COMPETE WITH AT&T
Issue: Competition
In a move that exemplifies the change to a competitive market in the area
of local telephone service, SBC Communications will launch bundled
communications packages in specific areas to compete with AT&T. For
example, in Fremont, California, AT&T has begun selling local and long
distance services over its cable lines. SBC is now responding with a
package including DirecTV along with its phone services that will save
customers 6%-35%, if they had purchased those services separately. Two
markets in Dallas are being introduced today to an SBC bundled package
which offers 1) two phone lines, 2) DirecTV satellite television, 3)
discounted local toll calling, wireless calling and dial up Internet
service, 4) thirteen add-on features like voice mail and caller ID and 5)
inside wire maintenance on both lines -- all for $137. SBC packages miss
one service that the AT&T packages have: long distance. The Bell operating
companies cannot get into the long distance market until they have proved
there is competition within local phone service.
[SOURCE: Wall Street Journal, B8, AUTHOR: Stephanie N. Mehta]
(http://interactive.wsj.com/articles/SB935452681561330110.htm)

PHONE WARS
Issue: Telephony
[Op-ed] Although long-distance phone companies have multiple "rate plans"
that include cheaper alternatives, many customers are paying higher
rates. Nearly 25% of AT&T's phone traffic is billed at the maximum rate.
The use of multiple rate plans is said to offer customers more choice, but
instead often makes it difficult for customers to compare prices and shop
around for the best deal. The ability of customers to compare rate plans
would lead to a drop in cost and subsequently a decline in the phone
companies' profits. Consumers need to demand the lowest available rate from
their phone company, review their phone bills, balk when their carrier
tinkers with rates and frequently compare carrier rate plans. Regulation of
long distance carriers, including simple monthly billing and
government-guaranteed rates, would benefit consumers. Contrary to what the
telephone companies would have customers believe, the decline in the price
of long-distance calls has been a function of technology, not necessarily
competition.
[SOURCE: Washington post (A17), AUTHOR: Robert Kuttner, co-editor of the
American Prospect]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-08/24/022l-082499-idx.html)

COMPANIES TEAM ON WIRELESS STANDARDS
Issue: Wireless
A new industry group is being formed to develop standards for wireless
computer networks. Lucent Technologies, Nokia and 3Com are among the
companies that have joined together to found the Wireless Ethernet
Compatibility Alliance (WECA), which hope to make it less risky for
consumers and network operators to invest in expensive wireless equipment.
The industry is eager to develop more dependable links to local wireless
network everywhere. According to a press statement, WECA "will enable true
multi-vendor interoperability by certifying that systems from different
manufacturers can be used within the same wireless infrastructure."
[SOURCE: New York Times (Online), AUTHOR: Associate Press]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/24wireless.html)

TELEVISION

NONPROFITS COURTING DBS FOR SET-ASIDE CHANNELS
Issue: Satellite TV
By orders of the Federal Communications Commission, direct broadcast
satellite providers must allocate 4% of the number of channels they provide
for noncommercial educational programming. This new public interest
obligation was adopted last fall and must be fulfilled by December 15.
Exactly how many channels this will mean for educational purposes is
unknown, as the two largest operators, DirecTV and Echostar, have not
decided exactly how many channels they will offer. The number could be
anywhere between 8 and 20 depending on how many the companies choose to
transmit. As permitted by the FCC, DBS providers will charge the
noncommercial educational programmers for half of the direct costs they
incur, which include labor costs associated with uplinking feeds,
authorizing viewers to receive the channels and incremental costs of
compression equipment. Many entities have applied to be a set-aside
noncommercial educational station, but many may not have the money or
technological capabilities to stay functioning.
[SOURCE: Current (p.1), AUTHOR: Karen Everhart Bedford]
(http://www.current.org/)

PUTTING THE LID ON CABLE?
Issue: Cable/Ownership
AT&T's planned takeover of MediaOne Group hinges on the FCC relaxing
industry ownership rules. FCC staffers are planning to send recommendations
to the commissioners before the agency's Sept 15 meeting. Previously the FCC
has refused to revamp its attribution rules. The current regulations
prohibit multiple system operators (MSOs) from controlling cable TV lines
passed to more than 30% of US homes. The acquisition of MediaOne would raise
AT&T's stake in systems passing 61 million homes (64%), serving 37 million
(55%) subscribers. However, since the FCC does not currently count all
investments, AT&T expects the FCC to attribute to it 47% of homes passed
after calculating the purchase of MediaOne and the sale of other systems,
which would still be over the 30% limit. The FCC has indicated it will give
cable at least one break and base an MSO's ownership on the percentage of
all multichannel subscribers (including DBS customers) rather than on the
number of homes passed, which would increase the number of households an MSO
can reach.
[SOURCE: Broadcasting & Cable (p.6), AUTHORS: Bill McConnell and John M.
Higgins]
(http://www.broadcastingcable.com/)

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