Communications-related Headlines for 9/27/2000

MEDIA & SOCIETY
Major Studios Used Children To Test-Market Violent Films (NYT)
Studios to Curb Marketing Of R-Rated Films to Youth (NYT)
Banned Books Week (EPIC)

POLITICAL DISCOURSE
Let Them Eat Cable (WP)
On MTV, Gore Hits Hip Buttons and Dreams of Air Force One (NYT)

EDTECH
Teachers Question Critical Study of Classroom Computers (CyberTimes)

ECOMMERCE
On the Web, Price Tags Blur (WP)

MERGERS/ALLIANCES
Holding Out for 'Open Access' to Cable (WP)
German Diplomats Respond to Opposition To Deutsche
Telekom's Acquisition Plans (WSJ)
VoiceStream Deal Could Clear Hurdle (USA)
Nokia, Ericsson and Motorola Join To Develop Global
Mobile Services (WSJ)

ANTITRUST
Supreme Court Declines to Hear The Microsoft Antitrust Case (WSJ)

INFRASTRUCTURE
NTT Intends to Link Homes To Web With High-Speed Fiber (WSJ)
The Digital Handshake: Connecting Internet Backbones (FCC)

TELEVISION
The Future of the Interactive Television Services Marketplace (House)

MEDIA & SOCIETY

MAJOR STUDIOS USED CHILDREN TO TEST-MARKET VIOLENT FILMS
Issue: Media & Society
Movie studios have routinely used children under 17 (and as young as 9) to
test violent, R-rates movies. Jack Valenti, the trade association's
chairman, said a report by the Federal Trade Commission has prompted studios
to take "a fresh new look at the way we market films." R-rated films may
still be tested on kids, but they will have to be accompanied by an adult.
[Maybe the studios will supply the adults, too?] The details of the
marketing campaigns withheld from the Federal Trade Commission's are
contained in the supporting documents, which were obtained by The New York
Times. The practices include recruiting members of targeted audiences and
conducting test screenings months before a movie is released. For PG-13
movies which warn that violent content may be "inappropriate" for children
under 13, the promotion of the films are broadened to include children as
young as 4.
[SOURCE: New York Times (A1), AUTHOR: Doreen Carvajal]
(http://www.nytimes.com/2000/09/27/arts/27VIOL.html)
(requires registration)
See Also:
MOVIE MARKETING PLANS AIRED
[SOURCE: USAToday (4A), AUTHOR: Andy Seiler]
(http://www.usatoday.com/usatonline/20000927/2690906s.htm)

STUDIOS TO CURB MARKETING OF R-RATED FILMS TO YOUTH
Issue: Media & Society
Jack Valenti, president of the Motion Picture Association of America, said
at a news conference Tuesday that each of the major movie-making companies
had set a "goal of not inappropriately specifically targeting children in
its advertising of films rated R for violence." The executives are gearing
up for a Senate Commerce Committee hearing today that will likely include
some sharp questions from senators. The industry announced voluntary
efforts: 1) studios will not include children younger than 17 in focus
groups testing movies rated R for violence unless the children are
accompanied by a parent or guardian and 2) previews for such movies would no
longer be shown before G-rated films. Neither voluntary effort has an
enforcement mechanism. As executives from eight movie studios testify today,
additional limits on marketing may be announced. Eighty percent of adults
believe there is a connection between violence in entertainment and violent
conduct.
[SOURCE: New York Times (A15), AUTHOR: David Rosenbaum]
(http://www.nytimes.com/2000/09/27/arts/27VALE.html)
(requires registration)
See Also:
MARKETING VIOLENCE TO CHILDREN
Issue: Media & Society
The full committee hearing on Marketing Violence to Children II will be
broadcast Live on the Internet. To access the hearing go to the Commerce
Committee website at (http://commerce.senate.gov), or if computer is already
equipped with RealPlayer, go to (pnm://vrn1.webcasting.evoke.com
/basic/providers/senate/commerce.rm)
The hearing is scheduled for Wednesday, September 27, at 9:30 a.m. in room
253 of the Russell Senate Office Building. Senator John McCain (R-AZ),
Chairman of the committee, will preside.
Following is the tentative witness list (not necessarily in order of
appearance):
Mr. Rob Friedman, Vice Chairman, Motion Picture Group, Paramount; Mr. Jim
Gianopulos, President, Twentieth Century Fox; Mr. Mel Harris, President and
COO, Sony; Mr. Alan Horn, President and COO, Warner Brothers; Mr. Robert
Iger, President and COO, Disney, Miramax; Mr. Chris McGurk, Vice Chairman
and COO, MGM; Mr. Walter Parkes, Co-Head, Dreamworks; Ms. Stacy Snider,
Chairman, Universal.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-223.htm)

BANNED BOOKS WEEK
Issue: Media & Society
"Fish in the River of Knowledge", the Nineteenth Annual Banned Books Week
(http://www.ala.org/bbooks/index.html), will take place from September 23rd
through the 30th. The event highlights attempts to remove and ban books from
schools, public libraries, and bookstores and the need for vigilant
protection of free expression. The sponsor organizations have also put
together the top ten list of most challenged books in 1999 as well as the
hundred most challenged books of the decade.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

POLITICAL DISCOURSE

LET THEM EAT CABLE
Issue: Political Discourse
[Editorial] While the 13 local TV stations owned by General Electric, the
corporate parent of NBC, pocketed $23.5 million airing political ads between
January and July of this year, NBC's flagship broadcast channel is not going
to carry the first presidential debate. Rupert Murdoch's Fox stations, which
earned from $9.2 million political ads during the same period, will not be
carrying any of the Presidential debates. Both companies will instead air
the debates on their cable channels, which are available only to paying
subscribers and which reach far fewer voters. The Post chides the networks
for neglecting their obligation to improve public discourse. "The networks
have headed off attempts in Congress to make them join wireless telephone
companies in paying for the airwaves they occupy. In exchange for free
spectrum, the broadcasters have accepted that they must serve the public
interest." The Post concludes: "Congress may fairly wonder why it is giving
away the air to those who do not honor that deal."
[SOURCE: Washington Post (A22), AUTHOR: Washington Post Editorial Staff]
(http://www.washingtonpost.com/wp-dyn/articles/A24364-2000Sep26.html)

ON MTV, GORE HITS HIP BUTTONS AND DREAMS OF AIR FORCE ONE
Issue: Political Discourse
Less than half of those ages 18 to 24 said they planned to vote this year,
compared with 80 percent of older Americans. But Vice President Al Gore took
his message to this audience yesterday, taping an appearance at the
University of Michigan for MTV. Although he did not say much new, VP Gore
talked about his support for civil unions between homosexuals, his
opposition to the legalization of medical marijuana and his distaste for
misogynistic music. He also made references to Napster and "Smackdown!" the
World Wrestling Federation TV show. Any drama in the show came from the
students themselves as they personalized questions the Gore campaign usually
addresses in position papers: 1) A black student asked Mr. Gore about racial
profiling by telling how he was recently surrounded by six police cars while
driving with four black friends. 2) A gay man asked why his heterosexual
friends should be able to drive to Las Vegas and marry someone they barely
know when he cannot form a legal union with a longtime, committed partner.
3) A woman who opposes abortion rights asked about that issue by pointing
out that her friends sometimes use abortion as a form of birth control.
Answering a question about popular culture and the entertainment industry,
Gore said he does not support censorship, but he also did not hesitate to
offer his personal view that Americans should protest entertainment that
advocates homophobia, violence against women or racial discrimination. "I
don't go along with the notion that if material like that becomes widely
accepted and nobody thinks a second thought about it that there are no
consequences to it," he said. "I think that what we listen to and enjoy and
spread around in our culture does have an effect on us."
[SOURCE: New York Times (A16), AUTHOR: Kevin Sack]
(http://www.nytimes.com/2000/09/27/politics/27GORE.html)
(requires registration)

EDTECH

TEACHERS QUESTION CRITICAL STUDY OF CLASSROOM COMPUTERS
Issue: EdTech
a new study underwritten by the Alliance for Childhood -- "Fools Gold: A
Critical Look at Computers in Childhood" -- says there is not enough
research into the impact computers could have on the developing minds and
bodies of young children. "The reason we're calling for a time-out is we
think we need to get more information before we put a computer in front of
each kid," said Edward Miller, co-author of the study and an education
policy analyst based in Cambridge, Mass. "We don't think computers are
evil." But teachers are now questioning the report. "With some kids, it's a
way for them to get excited and learn," said Beth Lang who teaches second
and third grades at Lakewood Elementary School in Overland Park (KS). "Ten
years ago, our technology was 'Kids, when you finish your math lesson, go
and play a math game'" on the computer, said Candy Atwood, instructional
technology specialist for the Plano Independent School District in Texas.
"Our technology now is not a game. We are really at the point when our
computers are not used for babysitting anymore." The success of computers in
schools, teachers say, is based on how well teachers are trained to use it.
Judy Hamilton, chief executive of Classroom Connect, which offers
Internet-based curriculum and teacher training, said classroom computing is
too new to call for a time-out. "It's a step process," she said. "First you
have to give them the equipment. Then you have to train the teachers. We're
just at the beginning."
[SOURCE: CyberTimes, AUTHOR: Rebecca Weiner (rweiner( at )nytimes.com)]
(http://www.nytimes.com/2000/09/26/technology/27EDUCATION.html)
(requires registration)

ECOMMERCE

ON THE WEB, PRICE TAGS BLUR
Issue: Ecommerce
"Amazon was trying to figure out how much their loyal customers would pay,"
said Barrett Ladd, a retail analyst with Gomez Advisors. "And the customers
found out." Amazon.com is receiving backlash after experimenting with
"dynamic pricing," which gauges a shopper's desire, measures his means and
then charges accordingly. "Dynamic pricing is the new reality, and it's
going to be used by more and more retailers," said Vernon Keenan, a San
Francisco Internet consultant. "In the future, what you pay will be
determined by where you live and who you are. It's unfair, but that doesn't
mean it's not going to happen." Amazon says the pricing variations, which it
stopped as soon as the complaints began coming in from DVDTalk members, were
completely random. "It was done to determine consumer responses to different
discount levels," said spokesman Bill Curry. "This was a pure and simple
price test. This was not dynamic pricing. We don't do that and have no plans
ever to do that."
[SOURCE: Washington Post (A1), AUTHOR: David Streitfeld]
(http://washingtonpost.com/wp-dyn/articles/A15159-2000Sep25.html)

MERGERS/ALLIANCES

HOLDING OUR FOR 'OPEN ACCESS' TO CABLE
Issue: Broadband/Open Access
Lead by Richard Quigley, assistant city manager for Daytona Beach,
several municipalities in South Florida have refused to transfer Time
Warner's cable license to AOL as part of the companies' merger. Quigley,
and fellow neighboring regulators worry about what the creation of
AOL Time Warner means for the future of the Internet, and whether it
will open up its cable lines into homes to rival Internet providers.
They feel that AOL Time Warner non-binding agreements pledging "open
access," are not enough. The Florida dispute underscores how the
once little-know issue of open access has gained traction. In the past
two years, while both the Federal Communications Commission and Congress
have allowed the marketplace to resolve the issue, about a dozen cities
have sought to test their authority in the same way Daytona Beach has.
All the power to approve, deny or condition the merger lies with federal
authorities and the European Union, however. And a recent appeals court
decision in San Francisco affirmed the right of federal -- not
local -- authorities to regulate cable-based Internet service
[SOURCE: Washington Post (E01), AUTHOR: Ariana Eunjung Cha]
(http://washingtonpost.com/wp-dyn/articles/A14910-2000Sep25.html)

GERMAN DIPLOMATS RESPOND TO OPPOSITION TO DEUTSCHE TELEKOM'S ACQUISITION
PLANS
Issue: Merger
German Chancellor Gerhard Schroeder's foreign policy and security adviser,
Michael Steiner, wrote U.S. National Security Adviser Sandy Berger last week
to say that Berlin is committed to privatizing Deutsche Telekom and
increasing competition in telecommunications. He also expressed his concern
that passage of legislation introduced by U.S. Sen. Ernest Hollings (D-SC)
could harm trans-Atlantic trade relations. U.S. lawmakers are trying to torpedo
Deutsche Telekom's planned acquisition of VoiceStream and Powertel because
the German government still owns nearly 60% of the former telecommunications
monopoly. U.S. law forbids a company in which a foreign government owns more
than 25% from owning a phone license. But the U.S. Federal Communications
Commission can waive that restriction if it believes allowing the foreign
company to own a license is in the interest of U.S. consumers. But Sen.
Hollings wants to change that with legislation that would prevent regulators
from enacting a waiver. The Hollings proposal would therefore effectively
block Deutsche Telekom. The bill could come up in Congress this week as an
amendment to a House appropriations bill. Not many people give the Hollings
bill much chance of success. But there is a widespread feeling among
lawmakers in Washington that President Clinton should put more pressure
on foreign governments to honor World Trade Organization agreements.
[SOURCE: Wall Street Journal (A3), AUTHOR: William Boston And Jill Carroll]
(http://interactive.wsj.com/articles/SB969968976435242327.htm)

VOICESTREAM DEAL COULD CLEAR HURDLE
Issue: Merger
Deutsche Telekom, Germany's dominant phone carrier, has moved forward in
its campaign to gain approval for it $41 billion takeover of mobile
telephone company VoiceStream. Senate Majority Leader Trent Lott
(R-MS) urged lawmakers Tuesday to reject legislation, championed by
Sen. Ernest Hollings, (D-SC), that would effectively block the
transaction because Deutsche Telekom is majority-owned by the German
government. A U.S. law prevents a company that is more than 25% owned by
a foreign government from buying a U.S. phone license. But it allows
regulators to waive that restriction if they find the transfer to be in
the public interest. But several leading politicians, led by Hollings,
have pressed for legislation that would strip that waiver authority from
U.S. regulators, arguing the foreign governments have no business owning
U.S. phone companies. In 1997, the United States was among 70 countries that
signed a trade agreement to open telecom markets, pledging to let foreign
companies invest in domestic phone carriers.
[SOURCE: USAToday (10A), AUTHOR: Thor Valdmanis]
(http://www.usatoday.com/usatonline/20000927/2690968s.htm)

NOKIA, ERICSSON AND MOTOROLA JOIN TO DEVELOP GLOBAL MOBILE SERVICES
Issue: Wireless
Nokia has joined with Ericsson and Motorola to develop standards and
applications for the location-based services and applications used with
personal GIS systems and handheld devices. Location-based services allow
mobile phone users to find nearby restaurants, read bus timetables and track
down friends on their handsets. "There is a big demand for
location-sensitivity in networks, but currently there are no standardized
ways to do that," said Pekka Isosomppi, a Nokia spokesman. Applications
would include location traces for 911 calls or simply keeping track of
friends. "The handsets send off signals and, when you submit a search asking
if your friends are around town, you'll get a list of where they are," Mr.
Isosomppi said. The Location Interoperability Forum, or LIF, will offer
location-based services world-wide on wireless networks and terminals, Nokia
said.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: WSJ.COM News Roundup
(http://interactive.wsj.com/articles/SB969958402548777120.htm)
(Requires registration)

ANTITRUST

SUPREME COURT DECLINES TO HEAR THE MICROSOFT ANTITRUST CASE
Issue: Antitrust
The Supreme Court decided against an early review of the Microsoft
antitrust case, a decision that would delay a final judgment for as long as
two years. The Supreme Court's 8-1 ruling Tuesday is a setback for the
Justice Department and 19 states, which argued that the case was important
to the nation's economy and should be resolved quickly. The
ruling means the government's sweeping victory in U.S. District Court in
Washington DC earlier this year will be reviewed first by the federal
appeals court here, which ruled in Microsoft's favor in an earlier case.
Microsoft can now march into new markets without fear of being hampered by
the courts Justice Stephen Breyer, in the sole dissent, wrote that the case
"affects an important sector of the economy," one that changes rapidly and
where "speed in reaching a final decision may help create legal certainty."
"This buys Microsoft time," said Bill Whyman, an analyst with Precursor
Group here. It also means any remedy will be different from the breakup and
business restrictions ordered by Judge Jackson, "because the market
structure itself will be dramatically different two years from now."
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke And Rebecca
Buckman]
(http://interactive.wsj.com/articles/SB969977773591184101.htm)
(Requires subscription)
See Also:
MICROSOFT SCORES TACTICAL VICTORY IN ANTITRUST CASE
[SOURCE: New York Times (A1), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2000/09/27/technology/27IMPA.html)
(requires registration)
SUPREME COURT WON'T EXPEDITE MICROSOFT APPEAL
[SOURCE: San Jose Mercury News, AUTHOR: David L. Wilson ]
(http://www.mercurycenter.com/svtech/news/top/docs/ms092700.htm)

INFRASTRUCTURE

NTT INTENDS TO LINK HOMES TO WEB WITH HIGH-SPEED FIBER
Issue: Infrastructure
Japan's Nippon Telegraph & Telephone (NTT) has disclosed plans for what it
calls the world's first widespread, high-speed Internet service delivered by
optical fiber directly into homes. NTT says it has built fiber networks deep
into every neighborhood in central Tokyo and Osaka, making it feasible to
extend fiber the final few hundred meters, or less in some cases, to homes.
The service marks a major push to bring Japanese Internet use up to U.S.
levels. Japan lags the U.S. in high-speed Internet access that allows people
to download data-heavy audio and video files. NTT is trying to leapfrog past
these technologies by connecting homes with the same optical fiber already
used world-wide as the backbone for computer networks. Running fiber to the
home has long been viewed as an ideal solution in theory but too expensive
in practice. Some rivals fear NTT may overwhelm potential competitors by
plowing money into cut-rate Internet services. "NTT could fortify its
position and preclude other people from coming in," says Lee Daniels,
president of Jupiter Telecommunications, Japan's largest cable operator.
[SOURCE: Wall Street Journal (A3), AUTHOR: Peter Landers]
(http://interactive.wsj.com/articles/SB969994547587631148.htm)
(Requires subscription)

THE DIGITAL HANDSHAKE: CONNECTING INTERNET BACKBONES
Issue: Infrastructure/Competition
The Federal Communications Commission's (FCC) Office of Plans and Policy
(OPP) today released the 32nd in its OPP Working Paper Series, entitled "The
Digital Handshake: Connecting Internet Backbones." The paper, authored by
Michael Kende, Director of Internet Policy Analysis in the Office of Plans
and Policy, examines the interconnection arrangements between Internet
backbone providers that lead to the universal connectivity that
characterizes the Internet. [settle down, class; the report is digital, so
there's plenty of copies for everyone] Since its commercialization in 1995,
the Internet has served as an example of a network industry in which
interconnection agreements are reached through commercial negotiations in a
"handshake," rather than a regulated, environment. This paper offers a
primer describing the existing Internet interconnection agreements - notably
peering arrangements - which have arisen in place of traditional regulation.
Issues covered include: Interconnection Agreements, Future Internet
Services, and International Interconnection. See a summary at the URL below
or get the full report at
(http://www.fcc.gov/Bureaus/OPP/working_papers/oppwp32.pdf).
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/OPP/News_Releases/2000/nrop0002.html)

TELEVISION

THE FUTURE OF THE INTERACTIVE TELEVISION SERVICES MARKETPLACE
Issue: Television
Wednesday, September 27, 2000 9:00 a.m. in 2322 Rayburn House Office Building
The Subcommittee on Telecommunications, Trade, and Consumer Protection has
scheduled a hearing on Wednesday, September 27, 2000 at 9:00 a.m. in 2322
Rayburn House Office Building. The hearing will be entitled: "The Future of
the Interactive Television Services Marketplace: What Should Consumers
Expect?" Witnesses will be by invitation only.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

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