Communications-Related Headlines for August 12, 2002

INTERNET
Ashcroft Asked To Target Net Song Swappers
An IM Chat Imbroglio in India

WIRELESS
Wireless To Shake Up Telecom World
Study: Wireless Hype Way Out of Whack

INTERNET

ASHCROFT ASKED TO TARGET NET SONG SWAPPERS
A group of 19 U.S. policymakers sent a letter to U.S. Attorney General John
Ashcroft asking that the Justice Department devote more resources to
policing "peer-to-peer" networks and users who swap digital content without
permission. While the peer-to-peer service Napster was ordered to shut down
in July 2001, other services such as Kazaa and Morpheus have moved in to
fill the void. Media industry lobbyists have been pushing extremely hard up
on Capitol Hill, but the role of law enforcement officials has been minimal.
"There is no doubt, mass copying off the Internet is illegal and deserves to
be a high priority for the Department of Justice," said Hilary Rosen,
chairman of the Recording Industry Association of America. Alan Davidson,
associate director at the Center for Democracy and Technology, said the
letter from the U.S. lawmakers "implies that [the] Justice [Department]
should be going after relatively innocent behaviors that I suspect most
Americans don't think warrant the time."
[SOURCE: USA Today, AUTHOR: Reuters]
(http://www.usatoday.com/tech/news/techpolicy/2002-08-09-law-music-swap_x.ht
m)

AN IM CHAT IMBROGLIO IN INDIA
Internet service providers in India have spent a lot of effort getting
permission to offer Internet telephony. Although the quality of Internet
telephony isn't the best, comparable service by telephone costs about five
times more, giving Internet conversations a big advantage. But the advantage
is being undermined by instant messaging, which has the even bigger
advantage of being free. Faced with revenue losses to instant messaging,
ISPs are trying to stifle the competition by making the case that voice
chatting on instant messaging, which is available through Yahoo India and
MSN, is illegal. Since government policy states that Internet telephony may
only be provided by ISPs, the issue hinges on whether instant messenger is
considered Internet telephony. Part of the ISPs' claim comes from the legal
responsibilities and liabilities under the Indian IT Act. Under this act,
ISPs are legally responsible for the content passing through their networks.
If the government finds that instant messaging is Internet telephony, Indian
ISPs could face legal action for carrying illegal voice traffic of
non-licensed companies who are providing instant messaging services.
[SOURCE: Wired News, AUTHOR: Ashutosh Sinha]
(http://www.wired.com/news/business/0,1367,54184,00.html)

WIRELESS

STUDY: WIRELESS HYPE WAY OUT OF WHACK
The World Wireless Forum has released a report that refutes the wireless
industry's analysis predicting 10 billion multimedia messages a month within
two years. According to the forum, the correct figure will be closer to 200
million a month by 2004. The report claims that the largest market currently
for multimedia messaging services (MMS) is youth under 22 years old. The
youth market is about 88 percent of the current market, but the handsets are
priced well above what this group can afford. The report claims that for the
16 countries it surveyed, it has not seen a working business model for MMS.
One Australian wireless provider, Optus, defends its business model: "We've
done our research. We have provided a public forecast that 25 percent of
Optus revenue will come from data-related services by 2005, and we're on
track for that." One of the ways Optus is hoping to encourage customer
demand is to enable MMS to be sent to any mobile or email address. If the
receiving equipment is not MMS-enabled, a text message is sent directing the
addressee to a Web site where they can view the original message.
Ultimately, MMS service and handset providers remain confident that as
lower-cost handsets become available, customer use will naturally increase.
[SOURCE: ZDNet Australia, AUTHOR: James Pearce]
(http://zdnet.com.com/2100-1105-949096.htm)

WIRELESS TO SHAKE UP TELECOM WORLD
Increasingly, wireless fidelity (wi-fi) technology is being used to set up
networks outside of the control of local phone and cable companies. Using
wi-fi technology, anyone with a dedicated Internet connection and a $200
wireless access point can be an Internet service provider to neighbors who
possess a suitable wi-fi antenna card. Individuals can purchase this $70
card and use the networks when they are within 100 feet of the access
points. Coverage is limited right now, but advocates believe that the low
cost and simplicity of setting up networks will result in fast growth.
Telecom companies who have spent billions creating wired networks have begun
to send out warnings to customers who are sharing their connections with
non-paying neighbors. Sara Elder, a spokeswoman from AT&T Broadband, said,
"We believe that's theft of service."
[SOURCE: San Jose Mercury News, AUTHOR: Matthew Fordahl]
(http://www.siliconvalley.com/mld/siliconvalley/news/3843697.htm)

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