Communications-related Headlines for 8/30/99

BROADCASTING
Kosovo's Incipient Media Ministry (NYT)
Diller is Holding Discussions with Several Broadcasters (WSJ)

INTERNET
Democracy Tugs at Internet Agency (NYT)

ECOMMERCE
Newspapers Seek CyberPartners to Fight Online Ads (NYT)
E-Commerce Report: Good Web Site Design Can Lead to Healthy Sales (NYT)

INFOTECH
Japan Bets on a Wired World to Win Back Its Global Niche (NYT)

TELEPHONY
AT&T Set to Respond in Rate-Cut Wars (WSJ)
FCC Approval of Wiretap Standards Brings Law Enforcement to
Digital Age (WSJ)
Rural Calls at Crossroads (USA)
Access Charge Reform (FCC)

JOURNALISM
Ruling Protects Some Materials of Journalists (WSJ)

BROADCASTING

KOSOVO'S INCIPIENT MEDIA MINISTRY
Issue: International/Broadcast/Journalism
[Editorial] The Organization for Security and Cooperation in Europe is
supposed to developing democratic institutions in Kosovo, but is proposing
rules for news media that could threaten democracy and a free press there.
OSCE is directing a radio station and has plans for a television station as
well. The last thing independent journalists need there is more official
media. The Times writes that OSCE's methods are overkill: "Kosovo needs
proper regulation of its airwaves to reserve licenses for legitimate
applicants instead of those with the bigger guns, with some licenses
reserved for multi-ethnic, Serbian and Roma-language stations. But this can
be done without the large bureaucracy the OSCE contemplates. Its staff would
train local journalists, monitor newspapers and broadcasts, and have
ultimate control over a TV station and a radio station with local staff. The
bureaucracy would also impose as yet unspecified regulations on what
journalists can say, especially broadcasters."
[SOURCE: New York Times (A22), AUTHOR: NYTimes Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/30mon2.html)

DILLER IS HOLDING DISCUSSIONS WITH SEVERAL BROADCASTERS
Issue: Ownership
Since the new broadcast ownership rules have made media deals easier, Barry
Diller of USA Networks is making some moves of his own. USA Networks owns 13
TV stations and is in talks with several broadcasters including ABC. USA
Networks is considering options ranging from putting its stations into a
partnership with another company, selling the stations outright or trading
the station group for new cable network interests to add to USA's existing
ownership of the USA, Sci-Fi and Home Shopping Network channels. An ABC
spokeswoman said, "We are looking at our options since the change in the FCC
rules on duopoly, but we never comment on specifics." A senior ABC executive
described the discussions with USA as being of a "general exploratory" kind,
and said that the network was talking to many others at the same time.
[SOURCE: Wall Street Journal, B8, AUTHOR: Martin Peers]
(http://interactive.wsj.com/articles/SB93597041870211621.htm)

INTERNET

DEMOCRACY TUGS AT INTERNET AGENCY
Issue: Internet
Comparing it to a "constitutional convention for cyberspace.... without half
the colonies," critics charge that the interim board of the Internet
Corporation for Assigned Names and Numbers (ICANN) is favoring business and
government over nonprofits and individuals in its policymaking. At issue
are the board's policy setting practices and the lack of consumer and
nonprofit representation in its composition. Critics expressed concern about
proposed rules favoring corporations. During a public session held on
Wednesday, Esther Dyson, ICANN's interim chairwoman, responded to critics by
stating that the board was "less interested in complaints about process" and
more interested in "doing real work and moving forward." While ICANN's draft
rules on cybersquatting were roundly applauded, the proposal also raised
questions as to how ICANN would insure every Internet user a voice in the
process. ICANN responded by more narrowly defining "cybersquatter" adding a
good faith element to the draft. Concerns extend to the composition of the
board as well, while ICANN membership is marked by various government and
business entities, the interim board is struggling on how to structure the
at-large membership. One suggestion recommends 5000 members with the ability
to elect nine of the eighteen permanent members. Even that number, some
believe, would not to accurately represent all concerned parties.
[SOURCE: New York Times, C1, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/30ican.html)

ECOMMERCE

NEWSPAPERS SEEK CYBERPARTNERS TO FIGHT ONLINE ADS
Issue: Newspapers
For the largest-circulation newspapers, classified ads account for 43% of
the advertising revenues and more than 1/3 of total revenue. But the rise of
online classifieds is threatening this franchise which flourished with the
post-World War II buying boom. Michael Beebe, a media analyst for Goldman,
Sachs, said, "There is going to be an erosion in revenue and profitability"
in the old-fashioned newspaper classifieds. "That's not to say that some
company might not discover the right model and build an economically viable
and perhaps value-added business, using the Internet to its advantage,"
Beebe added. "They're all searching for it."
[SOURCE: New York Times (C1), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/30help.html)

E-COMMERCE REPORT: GOOD WEB SITE DESIGN CAN LEAD TO HEALTHY SALES
Issue: Ecommerce
Bad Web design these days could mean a threat to the bottom line for many
companies. "The customer's experience on the Web can make or break a
business," said Mark Hurst, president of Creative Good, a consulting firm
that helps clients address what is known as Web site usability. "There was
$3 billion lost on the Web last year because of poor design -- sites not
realizing that if they just make it easier for the consumer to buy, they'll
make more sales." See the problems e-commerce "leader" IBM had last year and
how it solved its Web site problems.
[SOURCE: New York Times (C2), AUTHOR: Bob Tedeschi]
(http://www.nytimes.com/library/tech/99/08/cyber/commerce/30commerce.html)
See also:
E-COMMERCE VENTURE HAS $130 MILLION
An Internet company incubator has raised $130 million from investors
including Disney George Soros.
[SOURCE: New York Times (C6), AUTHOR: Andrew Pollack]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/30fund.html)

INFOTECH

JAPAN BETS ON A WIRED WORLD TO WIN BACK ITS GLOBAL NICHE
Issue: Info Tech
After the successes with cars and audiovisual products in the 1970s and
1980s, Japan has economic trouble. Companies there are scrambling to be
world leaders in appliances for the fully wired home: videophones; microwave
ovens from Sharp that automatically cook from recipes found on the Internet,
washing machines with an 18-minute cycle that scrub people instead of
clothes,and personal locators that fit into a pocket and use satellite data
to generate a map showing one's whereabouts.
[SOURCE: New York Times (A1), AUTHOR: Sheryl WuDunn]
(http://www.nytimes.com/library/tech/99/08/biztech/articles/30japan.html)

TELEPHONY

AT&T SET TO RESPOND IN RATE-CUT WARS
Issue: Competition
AT&T is expected to respond today to rival's MCI WorldCom's
nickel-per-minute calling plan launched earlier this month. The MCI
WorldCom calling plan offers consumers a nickel/minute weekend and off peak
(7 pm to 7 am) rate with a $1.95/month fee. However, MCI WorldCom charges as
much as 25 cents per minute for daytime calls unless customers sign up for
an additional $4.95 plan that reduces the peak (7 am to 7 pm) rate to 10
cents per minute. AT&T has filed a tariff with the Federal Communications
Commission
that would allow it to match the MCI WorldCom plan. Those close to AT&T
state that AT&T's plan will probably not match the MCI WorldCom plan, but
most likely focus on convenience, offering a rate between five and 10 cents
24 hours per day. [NPR is reporting this morning that it will be a
$0.07/minute plan.]
[SOURCE: The Wall Street Journal (B4) Author: Rebecca Blumenstein]
(http://www.wsj.com)

FCC APPROVAL OF WIRETAP STANDARDS BRINGS LAW ENFORCEMENT TO DIGITAL AGE
Issue: Telephone Regulation
Friday, the Federal Communications Commission approved requiring
telecommunications providers to meet six new surveillance capabilities
sought by the U.S. Justice Department. All carriers -- wireline, cellular
and broadband personal-communications services must provide law-enforcement
officials holding court orders with wiretap capabilities such as 1)
identification of the location from which a call is placed; 2) the ability
to tap conference calls; 3) provide access to "packet mode"
communications -- the Internet protocol used for voice communications; 4)
allow officials to know when a subject uses call-forwarding, call-waiting
and similar features; 5) ability to access numbers a person dials after a
connection is made to a long-distance provider through a toll-free number;
and 6) access to information needed to correlate call identity with content.
The FCC asked the industry to come up with a solution for standards by
September 2000. Privacy advocates are upset, as they believe these rules go
too far and major telecommunication equipment makers say the deadlines are
too tight to comply. Companies will have to meet an interim industry
standard by June 30, 2000.
[SOURCE: Wall Street Journal, A6, AUTHOR: James P. Miller]
(http://interactive.wsj.com/articles/SB935782397610791581.htm)
See Also:
CALEA
Issue: Wireless
The Federal Communications Commission (FCC) has clarified which categories
of service providers are subject to the requirements of the Communications
Assistance for Law Enforcement Act (CALEA). The FCC also provided guidance
regarding the factors it will consider in determining whether compliance
with the law is "reasonably achievable" for particular carriers.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9038.html)

RURAL CALLS AT CROSSROADS
Issue: Universal Service/Competition
It is hard to imagine -- but telecommunication competition is actually
hurting the rural telecommunications consumer. Why? Well, the local
telephone companies and long distance carriers subsidize many rural areas.
Long-distance companies say the subsidies, mandated by the federal
government, are too high. The long distance companies collect from customers
much of the money for the rural subsidies, which accounts for about 40% of
the price each long-distance call. Long-distance carriers want those
subsidies lowered so they can drop long-distance rates to compete. The
Federal Communications Commission is expected to change the system during
the next two years. This problem could affect everyone because even if new
and advanced services are available in urban areas, they cannot reach their
full potential if they do not reach all areas. Advanced services in rural
areas are much more expensive because, unlike urban areas, rural areas
cannot buy in bulk, so prices for equipment are much higher. About 900
independent rural companies nationwide serve about 4 million of the nation's
approximately 200 million phone lines. An increase of $5/month is possible
if subsidies are cut, says John Rose, president of the 500-member trade
group the Organization for the Promotion and Advancement of Small
Telecommunications Companies.
[SOURCE: USA Today, 1B, AUTHOR: Steve Rosenbush]
(http://www.usatoday.com/money/bcovmon.htm)

ACCESS CHARGE REFORM
Issue: Telephone Regulation
FCC Releases Order and Further Notice of Proposed Rulemaking on Pricing
Flexibility and Other Access Charge Reforms. CC Docket Numbers 96-262, 94-1,
98-157, CCB/CPD 98-63. Comments due October 29, 1999; Reply Comment Date is
November 29, 1999.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Orders/1999/fcc99206.pdf)

JOURNALISM

RULING PROTECTS SOME MATERIALS OF JOURNALISTS
Issue: Journalism
Friday, a federal appeals court made it harder to subpoena the
non-confidential notes of reporters, videotapes that weren't broadcast, as
well as other unpublished material. Last year, the appeals court upheld a
lower-court ruling finding NBC in contempt for refusing to turn over
outtakes from a 1997 edition of Dateline, holding that journalists weren't
entitled to any special treatment when it came to turning over
non-confidential information they had obtained. NBC sought a rehearing. So
last week, the appeals court held that the network still had to turn over
the materials because, in this specific instance, they represent significant
evidence for a plaintiff in a pending case, and that the evidence couldn't
be obtained any other way. But the court reversed itself on the broader
issue, holding that journalists were entitled
to a 'qualified' privilege in cases involving non-confidential information.
Without the privilege, the court said, "the resulting wholesale exposure of
press files to litigant scrutiny would burden the press with heavy costs of
subpoena compliance, and could otherwise impair its ability to perform its
duties." The court added that the loss of protection could also result in
fewer people becoming anonymous sources for fear of "being sucked into
litigation" and could appear to turn journalists into an investigative arm
of the government or private parties.
SOURCE: Wall Street Journal, B7, AUTHOR: Frances A. McMorris]
(http://interactive.wsj.com/articles/SB935971018408793049.htm)

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