PHILANTHROPY
Funding Heavyweight Throws Itself Behind the Idea of Cultural Policy
(NYT)
UNIVERSAL SERVICE/ERATE
FCC's Plan for Effort to Link Schools to Internet Is Upheld by
Appeals Court (WSJ)
Speech: A Rising Tide: La Raza in the New Millennium (FCC)
INTERNET
Online Digests Help Readers Cope With
Information Avalanche (NYT)
A Showdown on Messaging May Unite Web Users (NYT)
More People Consult the Firm of Cyber, Web & Dot-com (WSJ)
Study Finds Decline in Web Shopping (NYT)
As Hotel Bookings Move Online, So Do the Middlemen (CyberTimes)
Start-Up Offers Free Intranets for Businesses (WSJ)
Master of His Own (Dot Com) Domain (WP)
WIRELESS
Teen-Agers Are All Talk With Own Cell Phones (NYT)
ADVERTISING
Ad Sellers Switch Sides, Unselling the Cigarette (NYT)
HEARINGS THIS WEEK
Open Commission Meeting (FCC)
PHILANTHROPY
FUNDING HEAVYWEIGHT THROWS ITSELF BEHIND THE IDEA OF CULTURAL POLICY
Issue: Philanthropy
"The next presidential election should be the last one in which the parties
are without a cultural policy plank in their platforms," said Stephen Urice,
a Pew Charitable Trusts official. "But first they need to have smart
academics, think tanks and data focusing on this, and that's where we're
headed. We're talking about developing an infrastructure for understanding
the role of culture in America." The Pew Charitable Trusts will devote about
40% of its culture budget, some $50 million, toward getting policymakers to
focus on issues like arts financing, intellectual property rights, zoning in
historic areas and an arts curriculum for public schools. The academic work
Pew intends to sponsor includes an examination of the value of cultural
programs past leisure activity of economic development engine. The Pew plans
an information center, perhaps in Washington, DC, to collect and publish
data, conduct polls and organize conferences. The Pew Charitable Trusts is a
$4.7 billion foundation.
[SOURCE: New York Times (B1), AUTHOR: Judith Dobrzynski]
(http://www.nytimes.com/yr/mo/day/news/arts/pew-culture-policy.html)
UNIVERSAL SERVICE/ERATE
FCC'S PLAN FOR EFFORT TO LINK SCHOOLS TO INTERNET IS UPHELD BY APPEALS COURT
Issue: Universal Service/Erate
Some local phone companies, including GTE and Bell Atlantic, challenged the
e-rate program, which was created by the 1996 Telecommunications Act to
help schools and libraries around the country connect to the Internet. The
local phone companies argued that the 1996 law stipulates funding could
only be used to subsidize telecommunications services, not wiring and
Internet services. Friday, the U.S. Court of Appeals for the Fifth Circuit
in New Orleans upheld the Federal Communications Commission's plan for
running the e-rate. The ruling could force long-distance carriers to
contribute more to help subsidize the $2.25 billion annual fund. The court
ruled that the FCC has the authority to provide subsidies for the internal
Internet connections and held that the schools could use the money to pay
Internet-service providers and other contractors besides telephone
companies. But in a setback, the court said that the FCC could only assess
contributions to the program from telecommunications companies based on
revenues they generate from providing long-distance services. Until now,
the FCC has also collected fees based on revenues generated by toll calls
placed within a state. As a result, both long-distance carriers and the
Baby Bells have had to pay into the fund. The FCC had required the Bells to
recover their contributions by imposing access fees on the long-distance
carriers for connecting calls to their networks. In turn, the long-distance
companies have passed on the charges to consumers. But the court ruled the
FCC couldn't require the Bells to impose such access fees on the
long-distance carriers.
[SOURCE: Wall Street Journal, B10, AUTHOR: Kathy Chen]
(http://interactive.wsj.com/articles/SB933550623969833997.htm)
SPEECH: A RISING TIDE: LA RAZA IN THE NEW MILLENNIUM
Issue: Universal Service/Erate
In a speech presented to the Council of La Raza in Houston, TX on July 28
Federal Communications Commission Chairman William Kennard said, "America is
getting a glimpse of the next century and realizing that Latinos are key to
America's future. If Latinos are key to the future of American society and
communications is key to the future of the American economy, than to be a
strong nation, we need to make sure that we invest in both." He thanked
advocate Raul Yzaguirre and La Raza who, along with allies on Capitol Hill
like Lucille Roybal-Allard and the Congressional Hispanic Caucus, he said
fought by his side to save the E-rate program. This year over $2 billion
will be made available to wire thousands of classrooms to the Internet, and
week of his visit to Houston, $12 million was provided to schools and
libraries in Texas. In addition to the E-rate, he expressed the need for
Latino radio stations to provide the music, news and local information and
for discriminatory advertising practices to end. He also said that creative
initiatives, like the tax certificate program, must be used in order to
create incentives for the sale of all types of communications businesses
--radio, TV, cable, wireless -- to small businesses, and especially small
businesses run by Latinos, women and other minorities. He noted that today,
a higher percentage of Latinos have their own businesses than in any other
group in America. But in order to build a stronger future, he said, progress
must be obtained for all people. "As Cesar Chavez once said," Kennard noted,
"We cannot seek achievement for ourselves and forget about progress and
prosperity for our community...Our ambitions must be broad enough to include
the aspirations and needs of others, for their sakes and for our own." For
the progress of a people --La Raza-- is greater when all rise together, he
said. "We can build an America for the next millennium that leaves no one
behind."
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/spwek926.html)
INTERNET
ONLINE DIGESTS HELP READERS COPE WITH INFORMATION AVALANCHE
Issue: Internet/Journalism
In the digital age, news digester is king [No prejudice here]. As
information technologies inundate readers with endless news sources, news
digests are becoming an increasingly popular way to manage the glut of
up-to-date information. Both online and email digests draw loyal audiences,
including many members of the media itself. "What I find especially in the
coverage of technology is that there is such a scrum of journalism today,"
said Scott Rosenberg, managing editor of Salon. "There is such a pile-on.
It's almost impossible for a single human being to monitor it all."
Rosenberg reads about a dozen digests that track technology news.
[SOURCE: New York Times (C10), AUTHOR: Andy Wang]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/02link.html)
A SHOWDOWN ON MESSAGING MAY UNITE WEB USERS
Issue: Internet/Competition
In the much publicized dispute between Microsoft and America Online over
instant messaging, both companies have tried to portray themselves amenable
to fair and open competition. History, however, has shown that Microsoft
and AOL are much more eager for openness in markets in which they are
behind. While America Online has launched an all out lobbying campaign
calling for open access to high-speed cable networks, it is reluctant to
adopt an open platform for it's hugely popular instant messaging software.
And while Microsoft has created a backdoor into AOL messaging system, it
encrypts messages making its own system incompatible with all others. In
the instant messaging battle, there is little sympathy for either side. "It
is unseemly for Microsoft to hijack their way into AOL's system," said Eric
Schmitt, an analyst with Forrester Research. "But America Online should
open the thing up."
[SOURCE: New York Times (C1), AUTHOR: Saul Hansell]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/02aol.html)
MORE PEOPLE CONSULT THE FIRM OF CYBER, WEB & DOT-COM
Issue: Internet Content
The Internet is "democratizing the practice of law," says Ralph Warner, a
founder of Nolo.com. Nolo launched the self-help law movement in the 1970s
with books teaching people how to file for bankruptcy law protection and is
now doing similar consulting via the Web. Companies such as this help
consumers find legal information on anything from contracts, divorce, state
tenant laws, etc. This saves the consumer from paying tremendous legal fees
for general information. The American Bar Association says that Web sites
may be useful for giving consumers information about their rights, but it
sees potential problems when lawyers get involved. Bar regulations covering
attorney conduct vary from state to state, so a lawyer in New Jersey giving
information over the Web to a consumer in Idaho may be unwittingly
violating that state's rules covering marketing and advertising. Some
experts are also concerned that a lawyer giving advice over the Internet
could be deemed to be practicing law in another state. Site operators say
that for the most part, they are merely offering general information about
the law, not specific legal advice. The new cyberlawyers say they are
careful not to mislead users. Using a medical analogy, Paul Ward, vice
president of marketing for law.com (law.com), says, "We are not going to
tell you what drugs to take. But you will be able to find out what the
drugs are." Michelle Moheit, for instance, made a strong case to her
landlord for getting out of a long-term lease after checking out a FindLaw
site on tenant rights. The landlord relented a few days after Ms. Moheit, a
Web-site designer in Lake Elsinore, Calif., pointed out various health and
safety violations and threatened to get the property condemned.
[SOURCE: Wall Street Journal, B1, AUTHOR: Richard B. Schmitt]
(http://interactive.wsj.com/articles/SB933556084181501147.htm)
Less Web Shopping Seen
Issue: E-commerce
A study by Greenfield Online, a Westport, Connecticut Internet marketing
research firm, suggests there is a ceiling that has been unknown until now
in the e-commerce market. The percentage of people with Internet access who
are making purchases from Web sites declined slightly in the second quarter
of 1999 after four quarters of spectacular growth. "This is the first
indication of the size of the population that will use the Internet to
shop," Rudy Nadilo, Greenfield's president and chief executive, said.
Greenfield's study does not necessarily indicate that sales on the Web have
stalled, since the total number of people with Web access continues to grow
rapidly. And the finding that 71 percent of people online bought at least
once in the last three months is respectable, even if it stays at that
level. The study was based on 2,598 respondents selected randomly from
Greenfield's national pool of more than 1 million individuals who have
volunteered to participate in online research.
[SOURCE: New York Times (C2), AUTHOR: New York Times Staff]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/02gree.html)
AS HOTEL BOOKINGS MOVE ONLINE, SO DO THE MIDDLEMEN
Issue: E-Commerce
Hotels have awakened to the e-commerce era and are making the
reservation process more efficient by going online. They haven't
necessarily eliminated the role of the middlemen, however: "Booking
companies, travel agents and new pure Internet players are launching their
own venture to compete in the online travel boom." As a result, consumers
who are online are benefiting from unprecedented access to information
about hotels and room prices and, as more people go online, there is more
competition, which could mean lower prices and slimmer margins for
travelers. Hotels say the Internet is the most significant technological
advance ever to affect the economics of the hotel industry after '800' numbers.
[SOURCE: New York Times (CyberTimes), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/08/cyber/commerce/02commerce.html)
START-UP OFFERS FREE INTRANETS FOR BUSINESSES
Issue: Ecommerce/Intranet
One company is offering to manage the Intranet systems of small businesses
free of charge. Intranets.com, a Woburn, MA start-up firm, "offers a series
of software templates to help customer design pages of information, which
it then stores on its own computers." The idea is targeted to small
companies in the U.S. and abroad that can't afford to manage their own
Intranet systems. This is one of several ventures by entrepreneur Bill
Gross -- who made his money in software and founded an investment firm
called idealab! -- to offer free goods and services. His other ventures
include FreePC.com Inc. (www.FreePC.com), NetZero Inc. (www.NetZero.com),
and HomePage.com (www.Homepage.com).
[SOURCE: Wall Street Journal (B10), AUTHOR: Don Clark]
(http://interactive.wsj.com/articles/SB933554102551730525.htm)
MASTER OF HIS OWN (DOT COM) DOMAIN
Issue: Internet
"Perhaps you've heard that 'domain names' have become an explosive growth
market. Consultants and entrepreneurs are snapping up domains in a riot of
speculation, convinced that claiming an outpost on the Internet today means
they will be riding a tsunami of revenue tomorrow," sayS Richard Leiby, who
just bought a domain name in his own name called Leiby.com. If companies
begin to compete against Network Solutions (which will no longer have its
monopoly on registering Internet sites) more people will be able to grab
names and it will be harder to get the one you want. "Lawyer.com? You'll
have to sue to get it. Truth.com? It's not out there. Jail.com? It's locked
up," he says. "Own your name," says Gary Cohn of Wheeling, IL, who owns
DanQuayle.com and OJ.com. "You never know what you may be doing in 10
years. It's a very small investment." Sign it up as a ".com" (as opposed to
".org" or ".net") which is seen as more established, better and stronger and
don't worry if it has no content, some day you might be inspired to share
something with the world.
[SOURCE: Washington Post (C1), AUTHOR: Richard Leiby]
(http://washingtonpost.com/wp-srv/WPlate/1999-08/02/088l-080299-idx.html)
WIRELESS
TEEN-AGERS ARE ALL TALK WITH OWN CELL PHONES
Issue: Wireless/Lifestyles
Teenagers are quickly becoming an important segment of cell phone market.
It is not just the adolescent gift for grab that is driving this trend,
though. A recent study of cell phone users by the Yankee group found that
20 of them believe it is important for their children to have cell
phones. As the price of wireless service drops, more and more parents are
getting cell phones for their kids to use in case of emergencies. Many
parents have also found that cell phones provide a very good way of keeping
tabs on their teens. "Having a cell phone is a lot less free than having a
pager," said Nahil Dhanji, an 18-year-old resident of Woodside, "You can't
get away when you want to be alone, and you can't just turn it off because
then your parents get all worried."
[SOURCE: New York Times (A1), AUTHOR: Vivian S. Troy]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/02phone.html)
ADVERTISING
AD SELLERS SWITCH SIDES, UNSELLING THE CIGARETTE
Issue: Advertising
Once upon a time, advertising agencies fought hard to see who would get
accounts like Camel and Marlboro. But now they are doing a complete 180
following a countertrend beginning by way of increasing sums of money
devoted to the unselling of smokingbrought on by a change in societal
attitudes toward smoking. By one rough estimate, the amount of money spent
in 1998 to unsell tobacco totaled $200 million. That compares with the
$575.7 million spent to advertise tobacco products in print, through outdoor
advertising and over the Internet in 1997.The American Legacy Foundation is
working on an anti-smoking campaign that will spend $375 million on
advertising every year. Chuck Wolfe, the American Legacy Foundation's
executive vice president said that these ad agencies are thinking if they
cannot get the tobacco business, why not try anti-tobacco. Spending on
advertising for anti-smoking products such as gums and inhalers has
increased as well. Stephen Badenhop, president at Jordan McGrath, whose
agency creates ads for the Nicoderm and Nicorette anti-smoking brands sold
by SmithKline Beecham, said the money spent to unsell smoking "is nowhere
near what the tobacco companies spend in a couple months -- but it's a good,
competitive amount of money."
[SOURCE: New York Times (C1), AUTHOR: Stuart Elliott]
(http://www.nytimes.com/yr/mo/day/news/financial/nosmoking-ad-column.html)
HEARINGS THIS WEEK
OPEN COMMISSION MEETING
Issue: FCC
The Federal Communications Commission will hold an Open Meeting on the
subjects listed below on Thursday, August 5, 1999, which is scheduled to
commence at 9:30 a.m. in Room TW-C305, at 445 12th Street, S.W., Washington,
D.C. Topics include: 1) The Commission will consider a Notice of Proposed
Rulemaking concerning wireless and satellite initiatives to facilitate
telecommunications service on Native American reservations. 2) The
Commission will consider a Further Notice of Proposed Rulemaking concerning
the availability of services supported by federal universal service support
mechanisms in unserved and underserved areas, including tribal and insular
areas. 3) The Commission will consider a Fifth Report and Order and Further
Notice of Proposed Rulemaking concerning issues relating to interstate
access charge reform. 4) The Commission will consider a Report and Order
concerning the method for determining compliance with the national TV
ownership rule. 5) The Commission will consider a Report and Order
concerning the broadcast attribution rules, the cross-interest policy, and
the cable-MDS attribution rules. [Looks like a lot of fun]
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/Public_Notices/Agenda/1999/agenda.
html)
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