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Communications-related Headlines for 5/26/99

UNIVERSAL ACCESS
FCC To Expand 'E-Rate' Funding (WP)
Telephone Service for Indians on Reservations (FCC)
Impact of 'Digital Divide' Debated (SJ Merc)

INTERNET
Government Asks, How Big Is the Digital Economy? (CyberTimes)
Non-Traditional Teachers More Likely to Use The Net (NYT)
AOL Volunteers Sue for Pay (CyberTimes)
Australia to Vote on Internet Curbs (CyberTimes)
It's About Time and Tech (USA Today)

SATELLITE BROADCASTING
A Phoenix Rises in China (WSJ)

CONVERGENCE
Glitches Hit High-Tech AT&T Network Test (WP)

TELEPHONY/REGULATION
Regulators' Findings Could Boost Cost (SJ Merc)
Truth in Billing (FCC)

CABLE
Cable Deal For $3.6 Billion is Expected (NYT)

FCC
Simulcast of Senate FCC Oversight Hearing (Senate)

UNIVERSAL ACCESS

FCC TO EXPAND 'E-RATE' FUNDING
Issue: E-Rate
The FCC will vote tomorrow to approve a $900 million increase for the "E-rate"
program, which funds Internet and telephone discounts for schools and libraries
nationwide. In its first year, the "E-rate" program was funded with $1.3
billion that phone companies generated by adding fees to phone bills. To cover
the $900 million, the FCC said that phone companies might have to add 10 cents
a month to the average phone bill, adding that consumers will save in the end
due to recently reduced long-distance fees. Telephone companies and
politicians, disapprove of the "E-rate" program's reliance on taxes. W.J.
"Billy" Tauzin (R-LA) has even proposed another bill that would replace the
current universal service fee that telephones companies pay, with a telephone
excise taxes. The FCC will go before the Senate Commerce, Science and
Transportation Committee today to present its arguments. Already, the program
has channeled nearly $500,000 into DC libraries, which has been used to support
their basic telephone services, Internet connections and internal emails.
[SOURCE: Washington Post (p.E1), AUTHOR: John Schwartz]
(http://washingtonpost.com/wp-srv/WPlate/1999-05/26/002l-052699-idx.html)
See also:
SUPPORT FOR FULL FUNDING OF E-RATE
Issue: Universal Service/E-rate
FCC Chairman William Kennard has received letters from 33 US Senators,
executives of 14 companies, including eight CEOs, and Wade Henderson and
Dorothy Height, Executive Director and Chairperson of the Leadership
Conference on Civil Rights, which enthusiastically support Chairman
Kennard's call for full funding of the e-rate. [See full list of Senators
and businesses at URL below]
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9032.html)

TELEPHONE SERVICE FOR INDIANS ON RESERVATIONS
Issue: Universal Service
The Federal Communications Commission has held two hearings on the subject of
overcoming obstacles to telephone service to Indians on reservations. The first
was held on January 29, 1999 at the Indian Pueblo Cultural Center in
Albuquerque, New Mexico. The second was held on March 23, 1999, at the
Sprung River Facility in the Gila River Indian Community in Chandler, Arizona.
In this Public Notice, the Commission extends the period for filing written
comments concerning the oral testimony, written statements, and other materials
received in the Arizona hearing. In a Public Notice, released March 2, 1999,
announcing the Arizona hearing, the FCC stated that it welcomed the filing of
written comments from all interested parties, and requested that those comments
be filed in BO Docket 99-11 on or before May 28, 1999. OCBO now announces that
the May 28, 1999 closing date for the Arizona hearing is extended to July 12,
1999. The Commission believes that this extension is justified for two reasons.
First, members of the Native American community have requested an extension.
Second, it is believed that the extension is justified in order to develop as
complete a factual record as possible. For further information, see the URL
below or contact Eric Jensen, at (202) 418-0990 or via e-mail at
ejensen( at )fcc.gov, at the Office of Communications Business Opportunities;
Belford Lawson at (202) 418-7264, or via e-mail at blawson( at )fcc.gov; or William
Kehoe, at (202) 418-7122 or via e-mail at bkehoe( at )fcc.gov, at the Common Carrier
Bureau.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/1999/pncc9013.html)

IMPACT OF 'DIGITAL DIVIDE' DEBATED
Issue: Access
Even at this relatively early stage in the Internet's development, one clear
trend has emerged; whites are more likely than non-whites to go online. "The
ramifications are enormous in terms of jobs and where minorities will be in the
new millennium," said B.Keith Fulton, director of technical programs and policy
for the National Urban League. David Ellington, founder the company that runs
the NetNoir -- one of the most popular African-American aimed Web sites -- does
not feel the same cause for concern. "Black folks will embrace the technology
of the Internet as soon as it becomes more relevant to our lives,'' says
Ellington. A government report, entitled "Falling through the Net II'' has
quantified the current racial disparities in technology access. Blacks and
Hispanics are half as likely to own computers as whites, the report found.
Another perspective was offered by David Eisner, vice president for corporate
relations for America Online, who claims that improving Internet content is
essential to bringing more minorities online. He gives the example of the
Benton Foundation, which he says has useful information for wide audience, but
is not easily accessible.
[SOURCE: San Jose Mercury News, AUTHOR: Paul Shepard (Associated Presss)]
http://www.mercurycenter.com/svtech/news/breaking/ap/docs/478348l.htm

INTERNET

ISSUE: GOVERNMENT ASKS, HOW BIG IS THE DIGITAL ECONOMY?
Issue: Internet/Economy
For two days this week, the Department of Commerce is hosting a summit for
policymakers, academics and industry leaders to address issues regarding the
size and impact of the digital economy. "E-commerce is everywhere, and we want
to do a better job of tracking it in government statistics. We want to better
measure what e-commerce means and doesn't mean to the economy -- so decisions
are not made in a vacuum," secretary of Commerce William M. Daley said in a
keynote address. The conference is part of the Clinton Administration's effort
to better track and report the impact of the Internet on the nation's economy.
"To be frank with you, I don't expect this conference to end with a nice neat
set of conclusions," Daley said. "The questions we raise are too tough. But we
hope to achieve a better understanding of how to proceed from here."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/26economy.html)

NON-TRADITIONAL TEACHERS MORE LIKELY TO USE THE NET
Issue: EdTech
Teachers who encourage class participation more than lecturing are more likely
to use the Internet in the classroom, said Jay Becker, a professor in the
department of education at the University of California Irvine and author of a
recent study, "Internet Use by Teachers: Conditions of Professional Use and
Teacher-Directed Student Use." Becker's report, which includes statistics on
frequency of use of the Internet, email, word processing and CD-ROMS, surveyed
2,251 teachers in grades four through 12. The study is perhaps the most
in-depth national look to date at the Internet and how teachers perceive and
use it. Among other data, the report found that "65% of those with the
strongest progressive leanings considered the Internet 'essential' to a
classroom, compared to 34% of teachers with the most traditional teaching
styles and views." Becker advocates a progressive method of learning called
'constructivism', where teachers are guides or facilitators to knowledge,
rather than instructors of pre-determined skills and facts, and where students
have more control of their studies than in conventional classrooms. Critic Tom
Loveless, an associate professor who teaches courses in education policy at
Harvard University's John F. Kennedy School of Government, believes that
curriculum based on fixed content, rather than through student exploration is
necessary and fears that constructivist teachers using the Internet might just
be wasting kids' time. The Internet is essential in the classroom, he says, but
predicts that the Internet will be a tool that is used occasionally.
[SOURCE: CyberTimes (p.10), AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/05/cyber/education/26education.html)

AUSTRALIA TO VOTE ON INTERNET CURBS
Issue: Internet/ Content
A controversial measure to block children's access to pornography on the
Internet will likely be enacted by Australian legislators latter this week or
next. The legislation would create a new bureau of the Australian Broadcasting
Authority that would be charged with removing objectionable material from
Australian-based Web sites and blocking access to offensive overseas sites.
Critics vocally oppose the bill on grounds that it would be technically
implausible, harmful to the economy and that it lacks community support. Greg
Watson, vice-president of Australia's Internet Society says that major studies
on the issue indicate "the community is more concerned with the Government
imposing a censorship regime than content on the Internet, and that any
regulation should be in the hands of the end user." Ramin Marzbani, chief
executive of the e-commerce research company www.consult, said he feared that
the passage of the bill "would put us out of sync with our major information
economy trading partner, the U.S. Content regulation is effectively the same as
commerce regulation."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/26australia.html)

AOL VOLUNTEERS SUE FOR PAY
Issue: Employment
Two former volunteers for AOL have filed a suit against the company in order to
gain back wages they say were earned performing a variety of tasks for the
company. Kelly Hallisey and Brian Williams were among the thousands of AOL
"community leaders" who lead chat groups, police bulletin boards and advise
other users in exchange for free service. The plaintiffs say the company is a
different place now than when they began. "It was a situation that used to be
mutually beneficial, and now I see people being taken advantage of," says
Hallisey. This cases raises important issues about how work is defined in the
Information Age. Michael Rubin, an employment lawyer, says that the plaintiffs
must show that the company relied on the volunteers to perform essential
services for the company. "If the economic realities test demonstrates that
they worked as employees, then this is a straightforward case," he said.
"Calling them volunteers does not make them volunteers any more than calling a
tail a leg makes a dog have five legs."
[SOURCE: CyberTimes, AUTHOR: Lisa Napoli]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/26aol.html)
See also:
TWO EX-AOL VOLUNTEERS FILE CLASS ACTION LAWSUIT
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/008054.htm)

IT'S ABOUT TIME AND TECH
Issue: Anthropology
Anthropologists are undertaking a ten-year study called the Silicon Valley
Cultures Project (www.sjsu.edu/depts/anthropology/svcp) of how 12 families in
Silicon Valley divide their time between work and family life. They are finding
that the boundaries between the two are disappearing, that technology is what
is holding both areas of life together, and that "outsourcing" grocery shopping
and rides to soccer practices is common. They say "these trends could be
harbingers of things to come for the rest of the country as technology becomes
pervasive and our lives begin to run on hyperfast "Internet time." The
anthropologists are also finding that families are mobile, that they spend
little time together at home,and that every moment of family life is scheduled.
[SOURCE: USA Today (p.1D), AUTHOR: Elizabeth Weise] (www.usatoday.com)
See Also: COMPANIES LEARN VALUE OF GRASS ROOTS [SOURCE: USA Today (p.4D),
AUTHOR: Elizabeth Weise] (www.usatoday.com)

SATELLITE BROADCASTING

A PHOENIX RISES IN CHINA
Issue: Satellite Broadcasting
Rupert Murdoch's Phoenix Satellite Television Station, an affiliate of News
Corp, is thriving in China; proving to be a "victory of marketing over memory"
in a country where foreign satellite broadcasts have been illegal for years.
Phoenix has the farthest reach of any foreign channel in the country -- mainly
among upscale urban viewers -- and has a blue-chip base of advertisers that
have helped push ad sales up more than 40% a year. The millions of Chinese who
receive the broadcasts do so by way of News Corp's Star TV based in Hong-Kong.
Murdoch's station is the only competition to Chinese state television and is
expected to reach 130 million viewers by next month when a crackdown by the
government is anticipated. The government occasionally cracks down on foreign
satellite broadcasting and industry specialists say the measure is aimed at
programming originating in Taiwan, or may be timed for next month's 10th
anniversary of the Tiananmen Square pro-democracy demonstrations. The foreign
satellite company is not concerned, saying it has "ridden out the twists and
turns of state policy before." The company has also proven its success with its
business model, and Chinese officials might soon be more open to Murdoch's
idea: That the "media can be a business like any other."
[SOURCE: Wall Street Journal (B1), AUTHOR: Leslie Chang]
(http://wsj.com/)

CONVERGENCE

GLITCHES HIT HIGH-TECH AT&T NETWORK TEST
Issue: Convergence
AT&T 's original plans to implement a $90 billion voice, digital TV and
high-speed Internet network will be slightly altered to fix some technological
difficulties that were discovered durring a test of the system in Fremont (CA).
Though AT&T denies there have been any problems in Freemont, they will test
solutions in Salt Lake City (UT) that include increasing "call clarity" and
making sure that the phones and wires inside homes can be remotely monitored in
case of emergencies. Instead of running fiber-optic cable to neighborhoods with
600 people, it will run the cable to clusters of 50-75 homes, increasing
capacity tenfold. It also plans to develop a central network power system to
eliminate the use of batteries that power the phones. AT&T's plan is the "most
ambitious and adventurous in the history of Corporate America". AT&Ts is not
concerned with the size or cost of the project saying that much of the increase
will be offset because the network will be cheaper to run. When finished the
new services will reach one-fourth of the 103 million U.S. homes.
[SOURCE: USA Today (p.3B), AUTHOR: Steve Rosenbush)
(www.usatoday.com)

TELEPHONY/REGULATION

REGULATORS' FINDINGS COULD BOOST COST
Issue: Internet
The California Utilities Commission is considering proposal that could change
the fees the Internet service providers and local phone companies pay one
another to carry each other's calls. Currently, calls to Internet service
providers are considered local calls. But soon, state regulators might view
such calls as long-distance, which would result in higher fees. Consumer groups
fear that increased charges for ISPs would mean greater expense for consumers
and drive some providers out of business.
[SOURCE: San Jose Mercury News, AUTHOR: Los Angeles Times]
http://www.mercurycenter.com/svtech/news/breaking/merc/docs/internet26.htm

TRUTH IN BILLING
Issue: Telephone Regulation
In a dissenting statement, Commissioner Furchtgott-Roth expresses his concerns
about the FCC's direct involvement in commercial billing issues: I. The Legal
Authority for These Billing Requirements Is Questionable, And The Order's
Underlying Assumptions Contradict The Telecommunications Act's Deregulatory
Mandate; II. The "Truth-in-Billing" Order is Internally Inconsistent,
Arbitrary, and Misleading; III. The History of the Universal Service Program
and "Truth-In-Billing"; and IV. The Standardized Labeling Requirements for
Universal Service Charges Raise Grave First Amendment
Questions.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Furchtgott_Roth/Statements/sthfr921.html)

CABLE

CABLE DEAL FOR $3.6 BILLION IS EXPECTED
Issue: Mergers
Charter Communications is expected to buy Falcon Cable Holding of Los Angeles
in a stock swap valued at $3.6 billion. Charter is owned by Microsoft
co-founder Paul Allen who may be buying two other smaller cable companies as
well. Charter has committed itself to $3.7 billion in cable purchases this year
including $845 million for Avalon Cable Television.
[SOURCE: New York Times (C1), AUTHOR: Laura Holson]
(http://www.nytimes.com/yr/mo/day/news/financial/allen-deal.html)

FCC

SIMULCAST OF SENATE FCC OVERSIGHT HEARING
Issue: FCC
Today's 2:00pm (eastern) Senate Commerce Committee on FCC oversight can be
followed on the Web with RealAudio at
(pnm://video.srt.net/~srs_live/commerce052699.rm). All five FCC Commissioners
are expected to testify.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-69.htm)

--------------------------------------------------------------

Communications-related Headlines for 5/25/99

ERATE
Republicans Renew Attack On E-Rate (NYT)

JOURNALISM
Police Violate Privacy in Home Raids With Journalists (NYT)
Undermining the Latin Press (NYT)

BROADBAND/CABLE
The Battle for Broadband Access (Wired News)
Fears Rise of a 'Digital Divide'
How High's the Sky?
Top MSOs Own 90% of Subs (B&C)

PRIVACY/ENCRYPTION
State Bill Extends Arm of Law on Net Records (SJ Merc)
Slip Of The Tongue Lightens Up Encryption Hearing (NYT)

MERGERS
American-Style Capitalism Wins One in Italy (NYT)

NONPROFITS/ANTITRUST
High Court Lets FTC Police Nonprofits

EMPLOYMENT
'90s Unkind to Workers Study: Lower Wages,
Less Job Security Downside to `New
Economy' (SJ Merc)

INTERNATIONAL
Technology Intrudes on Dogma in Land of the Taliban

ERATE

REPUBLICANS RENEW ATTACK ON E-RATE
Issue: E-Rate
As the Federal Communication Commission (FCC) prepares to set this year's
E-rate -- funding for school and library Internet connections -- a partisan
battle is being waged over the fund which Republicans call the "Gore tax."
Last week, the Republican National Committee sent an email asking supporters to
contact the FCC with their opposition to the E-rate. The GOP insists that FCC
Chairman William Kennard's plan to increase the funding to $2.25 billion this
year will force telephone companies to raise customers' fees in order to
finance the universal service program. Democrats from rural states are pushing
the FCC to subsidize high-speed Internet access in rural areas to ensure the
reality of a truly "universal service." Senators say small businesses and farms
in rural communities are lacking the Internet access they need. "We are
determined not to end up with a country of haves and have nots with respect to
advanced telecommunications," said Sen Byron Dorgan (D-SD). Several Senators
wrote a letter to Chairman Kennard asking the FCC to support access to
technology in rural areas. The request includes "subsidizing high-speed
Internet and data services via satellite, raising the technical requirements
for phone lines, and encourage cellular companies to serve remote areas and
Indian reservations."
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing ]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/25capital.html)

JOURNALISM

POLICE VIOLATE PRIVACY IN HOME RAIDS WITH JOURNALISTS
Issue: Journalism
The Supreme Court ruled unanimously yesterday that the police practice of
bringing journalists and photographers into people's homes during searches
or arrests violates "the right of residential privacy at the core of the
Fourth Amendment." "Surely the possibility of good public relations for the
police is simply not enough, standing alone, to justify the ride-along
intrusion into a private home," Chief Justice William Rehnquist wrote for
the Court. The ruling does not affect report on police activity in public
places and the Court did not address the liability of news organizations
themselves.
[SOURCE: New York Times (A25), AUTHOR: Linda Greenhouse]
(http://www.nytimes.com/library/politics/scotus/articles/052599police-media.
html)
See also:
POLICE CAN BE SUED FOR LETTING MEDIA SEE RAIDS
[SOURCE: Washington Post (A8), AUTHOR: Joan Biskupic and Howard Kurtz]
MEDIA 'RIDE-ALONGS' CURBED
Issue: Privacy
The Supreme Court ruled unanimously Monday that police violate the privacy
rights of homeowners when they allow media to accompany them on searches and
arrests inside people's homes. "The need for accurate reporting on police
issues in general bears no direct relation to the constitutional justification
for the police intrusion in to a home," wrote Chief Justice William Rehnquist.
The National Association of Criminal Defense Lawyers represented a couple that
sued after government agents brought a CNN crew onto their property while
conducting a raid. Legal experts say media "ride-alongs" with police will now
stop at the front door of homes. Richard Cordray, a lawyer for the police
sued in the case, says media will still be able to ride-along with police and
accompany them in any public spaces. The ruling demonstrates that the Court
"saw no public value in giving the media access to such searches," said Jane
Kirtley of the Reporters Committee for Freedom of the Press. Joshua Dratel of
the National Association of Criminal Defense Lawyers said the ruling meant "the
government is not allowed to make a display of you."
[SOURCE: USA TODAY (A1), AUTHOR: Tony Mauro]
(http://www.usatoday.com/)

UNDERMINING THE LATIN PRESS
Issue: Journalism
[Editorial] The Clinton Administration seems to be backing an Organization
of American States declaration that would give governments license for
further restrictions on Latin America's besieged journalists. The
declaration is a retreat from previous strong statements on press freedoms
signed by hemisphere governments.It would allow some forms of prepublication
censorship allows for freedom of the press to be limited "under domestic
law." Such laws in some countries, however, make it illegal to show contempt
for public officials and then are used to jail journalists who publish
stories about corruption -- even when they are true.
[SOURCE: New York Times (A30), AUTHOR: NYT Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/25tue3.html)

BROADBAND/CABLE

THE BATTLE FOR BROADBAND ACCESS
Issue: Broadband/Internet Access
MCI WorldCom, America Online, and other Internet companies urged the FCC
yesterday to bar cable companies from striking exclusive deals on new
high-speed services. The companies say consumers will end up having to pay
twice if they chose to use their services. AT&T, for example, requires
customers of high-speed cable Internet access to purchase the services of
AtHome, a cable-owned provider controlled by AT&T, for a single price. Cable
Internet customers may use AOL or other ISPs, but must still pay for AtHome.
Two-day talks starting Monday are an"informal, educational" session on the
convergence of the cable and Internet industries, attendees said. Under
current law and FCC rules, phone companies offering high- or low-speed
Internet access must offer customers a choice of Internet service providers.
But the same rules do not apply to cable operators.
[SOURCE: Wired News, AUTHOR: Reuters]
(http://www.wired.com/news/news/politics/story/19858.html)

FEARS RISE OF A 'DIGITAL DIVIDE'
Issue: Convergence
AT&T predicts that the days of convergence -- when the phone, the TV and the
personal computer will all be fed by one cable TV wire into American's homes --
are near. But consumer organizations fear that steep costs for adapting the
current networks could translate into "gee-whiz services at jaw-dropping
prices," leaving many consumers unable to afford the new services. AT&T says
that the future services provided by one single company would reduce costs for
consumers. In Alexandria (VA), cable operator Jones Communications, which sells
combined cable TV and local phone services, has already undercut the prices of
the local phone monopoly by 10 percent. But Jones and Comcast, which acquired
Jones in April, are only offering services in apartment buildings where
multiple customers can be acquired at a lower cost. "Wary of making
predictions, Comcast won't say when its bundled services will be universally
available throughout the Washington area." AT&T is also hesitant about saying
when it will actually market its bundled services. Critics say "it could cost a
bundle to get a bundle" and that the new services could create a "digital
divide" between those who can afford them and those who cannot.
[SOURCE: Washington Post (E1), AUTHOR: Paul Farhi]
(http://washingtonpost.com/wp-srv/WPlate/1999-05/25/069l-052599-idx.html)

HOW HIGH'S THE SKY?
Issue: Cable Mergers and Acquisitions (M&As)
B&C Deputy Editor John M. Higgins interviews Morgan Stanley Dean Witter's
Richard Bilotti, Deutsch Bank Securities' Doug Shapiro, and Nationsbank
Montgomery Securities' John Tinker about the high prices being paid for the
M&As in spite of negative buyer cash-flows. Whether companies are buying in a
panic or simply making "land grabs," the analysts agree that companies are
losing money in the short-term, they are executing products slowly, and are not
fulfilling consumer demands for high-speed Internet access as promised.
Though consumers have been responsive to digital cable sales and are anxious to
receive larger amounts of data via high-speed Internet systems, the analysts
predicts that data technology such as VOD [video on demand] will take a long
time to develop, one-and-half to five years.
[SOURCE: Broadcasting&Cable (p.46), AUTHOR: B&C Deputy Editor John M. Higgins]
(http://www.broadcastingcable.com/)

TOP MSOs OWN 90% OF SUBS
Issue: Cable
Broadcasting & Cable ranks the top 25 multiple system operators (MSOs) by total
number of subscribers. The top five on the list are AT&T Broadband (16,200,000
subscribers), Time Warner, Comcast, Cox, and Adelphia. Many MSOs that have
never expected to get on the list are now top 25 due to the huge wave of
takeovers in the cable industry. The top 25 MSOs control 60.8 million
subscribers (or about 90% of all US cable homes). New entrants into the
industry, like AT&T, are coming onto the scene with lots of cash and plans to
roll out new services. In choosing acquisitions, operators look for local sales
that will match their existing subscriber base. But some acquisitions, such as
Adelphia Communications' takeover of Century Communications and Frontier Vision
Partners, demonstrate that companies will settle for sheer mass. The
ranking of MSOs seems to not mean much more than an ego boosts for the
companies, as there is so much fluctuation. Whereas operators were selling in
1994, fearing competition from telecommunication and wireless companies, they
are now buying in a hurry in an attempt to control multiple services. Other
MSOs feel they can beef up their revenues by adding digital, high-speed
Internet, and telephone services.
[SOURCE: Broadcasting&Cable (p. 34), AUTHOR: John M. Higgins]
(http://www.broadcastingcable.com/)

PRIVACY/ENCRYPTION

BILL EXTENDS ARM OF LAW ON NET RECORDS
Issue: Privacy
The California State Senate has unanimously approved a bill that will make it
easier for police to obtain electronic information from Internet and email
service providers. The legislation requires most out-of-state ISPs and email
providers to respond to California-issued search warrants. The bill also
requires California providers to honor out-of-state warrants. While the
State's attorney's office says that the rules could be a model to aid other
states in criminal investigations, some critics fear that it give law
enforcement officials too much authority. "There's a problem of jurisdiction.
How a superior court judge in California could have the power to issue a search
warrant for property in another state is beyond me," said Steve Meinrath, a
lobbyist for the California Attorneys for Criminal Justice. "That's why we
have a federal court."
[SOURCE: San Jose Mercury News, AUTHOR: Mary Anne Ostrom]
(http://www.mercurycenter.com/svtech/news/indepth/docs/senate052599.htm)

SLIP OF THE TONGUE LIGHTENS UP ENCRYPTION HEARING
Issue: Encryption
"Never underestimate the stupidity of some of the people we have to deal with,"
said William A. Reinsch, Under Secretary of Commerce for the Bureau of Export
Administration, while being asked about the likelihood of criminals using
technology being pushed by the Clinton Administration. Under Secretary
Reinsch received a
chuckle as he was testifying before the House International Relations
subcommittee in defense of the Administration's encryption policy. The
Administration is justifying the loosening of export controls on strong
encryption by counting on technology to guarantee law enforcement easy
access to criminals' communication.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/25capital.html)

MERGERS

AMERICAN-STYLE CAPITALISM WINS ONE IN ITALY
Issue: Mergers
[Editorial] Olivetti won Telecom Italia with an American-style leveraged
buyout. The question now is will the victor be able to operate the telephone
giant. The big losers so far are Italian investors with "savings shares" of
TI -- they do not get a vote in the merger and the value of their shares has
dipped since the merger. Moving from a monopoly, TI was slated to cut back
jobs -- many more will be lost now and if the Italian government resists
layoffs, that could hurt Olivetti. "Roberto Colaninno, Olivetti's chief
executive, may go down in European history as the man who used
American-style takeover tactics to gain control of a company that he then
improved to everyone's benefit. But if things do not work out, there is
likely to be a backlash against the aggressive tactics of such takeovers."
[SOURCE: New York Times (A30), AUTHOR: Floyd Norris]
(http://www.nytimes.com/yr/mo/day/editorial/25tue4.html)
See also:
DEUTSCHE TELEKOM LOST MORE THAN JUST TELECOM ITALIA
[SOURCE: New York Times (C4), AUTHOR: Edmund Andrews]
(http://www.nytimes.com/yr/mo/day/news/financial/olivetti-deutsche-teleko...)
TELECOM-OLIVETTI MATCH REDRAWS MERGER MAP
[SOURCE: Wall Street Journal (A18), AUTHOR: Gautam Naik and William Boston]
(http://www.wsj.com/)

NONPROFITS/ANTITRUST

HIGH COURT LETS FTC POLICE NONPROFITS
Issue: Nonprofits/Antitrust
The Supreme Court ruled yesterday that the Federal Trade Commission acted
within its authority when it sued the California Dental Association in 1993
claiming that the CDA's extensive disclosure requirements did not allow members
to advertise discounts. The Supreme Court handed the FTC a mandate to police
nonprofit associations, but also said that FTC examinations warranted further
review. Experts were displeased with these rulings saying "they will slow down
efforts by courts and regulators to forgo a rigorous analysis of market effects
before concluding that a company or association has violated antitrust law."
The FTC was also displeased as it wanted to apply a "quick-look" standard to
reviewing antitrust cases -- but can claim victory in the end. "This is a vital
element of the FTC now," said William Kovaci, a law professor at George
Washington University. "Had the court ruled against them on this, it would have
destroyed the most important non-merger related work the agency does."
[SOURCE: Washington Post (p.E3), AUTHOR: David Segal]
(http://washingtonpost.com/wp-srv/WPlate/1999-05/25/058l-052599-idx.html)

EMPLOYMENT

'90S UNKIND TO WORKERS STUDY: LOWER WAGES, LESS JOB SECURITY DOWNSIDE TO `NEW
ECONOMY'
Issue: Employment
While the fortunes of high-tech entrepreneurs often make the headlines, there
is little news about the financial situation of the average worker in the heart
of the Silicon Valley. According to a report to be released today, workers in
California are taking home less in real wages than they were at the beginning
of the 90s. Written by the San Jose-based Working Partnerships USA and the
Economic Policy Institute in Washington (DC), the report says that nearly 40%
of the jobs to be created by 2006 are in occupations that pay less that $10 an
hour. "Work in California's New Economy: Walking the Lifelong Tightrope"
highlights the fact that more and more companies are depending on temporary
workers. "These flexible arrangements make workers more vulnerable as companies
are able to shift supplier and sub-contracting relationships quickly and
easily, depending on market changes or managerial tactics, with little
responsibility to the workers affected," the report says.
[SOURCE: San Jose Mercury News, AUTHOR: Jonathan Rabinovitz]
(http://www.mercurycenter.com/svtech/news/indepth/docs/econ052599.htm)

INTERNATIONAL

TECHNOLOGY INTRUDES ON DOGMA IN LAND OF THE TALIBAN
Issue: Technology
Afghanistan's right-wing Taliban has finally conceded to allow technology like
laptops and cellular phones in its borders after realizing that they have as
much to gain as to fear from technology. The Taliban has restricted the use and
possession of television sets, tape cassettes and cameras since it seized
government control in 1996. After years of warfare, the county is in desperate
need for technology yet years of indoctrination against Western modernity will
be difficult to reconcile. Communications Ministry officials are now "trying to
find a way to log on without losing faith."
[SOURCE: Washington Post (A10), AUTHOR: Pamela Constable]
(http://washingtonpost.com/wp-srv/WPlate/1999-05/25/107l-052599-idx.html)

--------------------------------------------------------------
Headlines says, "So long" today to intern Alicia Kemmitt who's off to find
Tony's heart in San Francisco. (Yes, she knows...this summer could be the
coldest winter...)

COMMUNICATIONS-RELATED HEADLINES for MAY 24, 1999

ACCESS
Getting a Grip on Who Uses the Net (SJM)
Closing the Tech Gap (SJM)

INFRASTRUCTURE
Why It's Slow Going on the Net (WP)
Streets No Match for Info Highway (USA Today)

ECOMMERCE
A Behind-the-Screens Glimpse of an Internet Retailer (NYT)
Digital Commerce: Success Stories From Ebay

ENCRYPTION
Digital Millennium Copyright Act (NTIA)
Security And Freedom through Encryption Act (House)

TELEVISION/RADIO
TV Networks Win More Concessions from the Studios (WSJ)
As Asia's MTV And Channel V Compete For Viewers, They
Lose Money, Partners (WSJ)
Additional DBS Capacity for EchoStar (FCC)
Low Power FM Proposal (FCC)

MERGERS
Olivetti's Win May Reshape Telecom Industry (WSJ)

FCC
FCC Open Meeting (NECA)

ACCESS

GETTING A GRIP ON WHO USES THE NET
Issue: Internet Demographics
Cyber Dialogue, a market-research firm, has new numbers for Internet users:
31% of American adults were online as of the end of 1998. Counting both home
and work access, the firm found the states with the highest rates of Net use
were: Alaska (52%), Colorado (47%), Maryland and Utah (both 46%), Washington
(DC) (counted as a state) (43%), and Washington state (41%). The bottom
five: Mississippi (17%), Arkansas (19%), West Virginia (20%), Louisiana
(21%), and Kentucky (23%). California, not surprisingly, has the most Net
users. Among the largest 50 metropolitan areas, the company found Austin to
be the most wired, with 59% of the population connected -- and half of all
homes. Denver was second at 52% of the population. The combined DC/Baltimore
area was third, with 50%. Nashville was fourth, with 49%. The Bay Area
(Cyber Dialogue lumped San Jose and San Francisco together under a "San
Francisco '' label) was fifth, with 48%. By sheer numbers, the Bay Area
(2,355,000 adults online) trailed New York (4,488,000), Los Angeles
(3,568,000) and the combined DC/Baltimore area (2,700,000).
[SOURCE: San Jose Mercury News, AUTHOR:David Plotnikoff]
(http://www.mercurycenter.com/business/top/042639.htm)

CLOSING THE TECH GAP
Issue: Access
A look at the Digital Clubhouse Network, based in Sunnyvale (CA), a finalist
for a Computerworld Smithsonian award. The DCN aims to close the gap in
high-tech access. With volunteer instructors, DCN has programs for children,
World War II veterans, and women with breast cancer. Most of the equipment
and software at the clubhouses was donated by companies like Mitsubishi,
Cisco Systems and Adobe Systems. Although DCN want to expand to other
states, it will need a dramatic increase in funding to do so.
[SOURCE: San Jose Mercury News, AUTHOR: James Mitchell]
(http://www.mercurycenter.com/business/top/080132.htm)

INFRASTRUCTURE

WHY IT'S SLOW GOING ON THE NET
Issue: Internet
A study written by the Washington-based research firm TeleGeorgraphy,
TeleGeorgraphy 1999, reveals the technology, the complexity and the costs that
go into network communications like the Internet. Among other things, it says
that connecting to the Internet can be slow because of the small number of
"root name servers," 13, compared to the large number of Internet users, 150
million people worldwide. It says that ten out of the thirteen root servers are
located in the United States, making foreign access slow and costly. Root name
servers are computers that must be accessed because they "[hold] routing
information for the Internet's naming system" and serve as an "electronic
directory" of web page names. It says that the Washington (DC) area is fortunate
to have four name servers, but the capacity of the "pipes" [bandwidth] -- not
distance between name servers -- is what makes information travel faster.
Bandwidth is difficult for consumers to measure but the study provides a list
of the worldwide distribution of Internet host computers and the 100
most-visited Web sites.
[SOURCE: Washington Post (F20), AUTHOR: Victoria Shannon]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/24/104l-052499-idx.html)

STREETS NO MATCH FOR INFO HIGHWAY
Issue: Telecommunications Act of 1996
Streets and sidewalks are being dug up in various cities throughout the nation
so that telecommunications companies can install fiber-optic cable underground
to meet the higher consumer demands in telephone, cable TV and Internet
services. "The burst of activity was unleashed by the Telecommunications Act of
1996," which meant to increase competitiveness among companies but now it is
proving to be a hassle to city officials and residents. Cities are becoming
overburdened with applications and traffic-control issues as well as with
disgruntled drivers and pedestrians. "The traveling public, whether they're
walking or driving, take it out on city officials," says Leonard Krumm,
director of field services in Minneapolis, where there are 22 different phone
companies. Older downtown areas with small streets, high amounts of traffic,
and "big concentrations of corporate towers for state-of-the-art
telecommunication services" are facing greater challenges to installing the new
cables. In order to make the construction work bearable for citizens, cities
like Denver (CO), Richmond (VA) and Chicago (IL) [to name a few] say they are
asking companies to work away from busy streets, at early or late hours of the
day, and to try working as quickly and efficiently as possible. Paul Devaney, a
senior consultant with New Jersey-based Telecordia Technologies is also
reviewing guidelines for national standards regarding public works such as
these but says that consumers pay for it in the end; either the city [ie. tax
payers] pays for the repairs, or companies raise their consumer rates. Despite
possible tax or rate increases, one Chicago resident was eager, nevertheless,
for better cable services, "traffic is terrible, but so is our cable...This will
be good."
[SOURCE: USA Today (3A), AUTHOR: Haya El Nasser]
(http://www.usatoday.com/news/ndsmon02.htm)

ECOMMERCE

A BEHIND-THE-SCREENS GLIMPSE OF AN INTERNET RETAILER
Issue: E-Commerce
Although rei.com is not as big as Amazon.com ($50 million in annual sales vs
$610 million), it is doing something Amazon isn't -- turning a profit.
rei.com is the online companion to Recreational Equipment Inc -- better
known as REI. Kaufman's article dispels some myths about online commerce:
REI has found that having brick-and-mortar stores is a huge advantage, not a
liability and the operating costs for the Web site are continually going up.
A major factor in Web operations is cost -- technical people command larger
salaries than part-time salesclerks. The average salary for a skilled
technical position is ~$80,000 and REI reviews the field every 3-4 months
and automatically offers raises if it is lagging behind.
[SOURCE: New York Times (C1), AUTHOR: Leslie Kaufman]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/24web.html)

DIGITAL COMMERCE: SUCCESS STORIES FROM EBAY
Issue: E-Commerce
From an e-retailer success story above to a look at what's driving up the
value of the online auction site, Ebay. The site is a platform for anyone to
buy or sell just about anything and has given rise to e-entrepreneurs: "If
the trend in the next century is working for yourself," one user asserted,
"Ebay is going to do more for that than any other interface. It's easy and
it's comfortable, and when you do it once you aren't afraid of it anymore."
[SOURCE: New York Times (C4), AUTHOR: Denise Caruso]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/24digi.html)

ENCRYPTION

DIGITAL MILLENNIUM COPYRIGHT ACT
Issue: Intellectual Property/Encryption
The National Telecommunications and Information Administration of the United
States Department of
Commerce and the United States Copyright Office invite interested parties to
submit comments on the effects of Section 1201(g) of Title 17, United States
Code, as adopted in the Digital Millennium Copyright Act, Pub. L. No.
105-304, 112 Stat. 2860 (Oct. 28, 1998) ("DMCA") on encryption research and
the development of encryption technology; the adequacy and effectiveness of
technological measures designed to protect copyrighted works; and the
protection of copyright owners against unauthorized access to their
encrypted copyrighted works. The DMCA, enacted on October 28, 1998, directs
the Register of Copyrights and the Assistant Secretary for Communications
and Information of the Department of Commerce to prepare a report for the
Congress examining the impact of Section 1201(g) on encryption research and
including legislative recommendations - if any - no later than one year
after enactment of the DMCA. This Federal Register Notice is intended to
solicit comments from interested parties on the effects of section 1201(g)
of the DMCA. More specifically, how will the provisions of section 1201(g)
of the DMCA affect encryption research?
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/occ/dmca/dmca.htm)

SECURITY AND FREEDOM THROUGH ENCRYPTION ACT
Issue: Encryption
Tuesday, May 25, 1999. 10:00 a.m. in 2322 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on H.R. 850, the Security And Freedom through Encryption Act. The hearing
will also focus on the Administration's policy on encryption products.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/schedule.htm)

TELEVISION/RADIO

TV NETWORKS WIN MORE CONCESSIONS FROM THE STUDIOS
Issue: Broadcasting
Networks made high demands on Hollywood studios in exchange for putting their
shows onto the fall schedule last week. Walt Disney's ABC threatened to move
shows in the schedule if they didn't receive a 10% stake in the profits and CBS
obtained ownership positions in all six of its new fall programs. "A lot of the
shows this year got on not just because they were good shows, but because there
were deals behind them," said an executive at International Creative
Management. Network's ownership over programs has been made possible by the
loosening of federal restrictions on networks owning their own shows. ABC
demanded the right to run each of its new shows four times instead of the usual
two. NBC won a six-year license for ER, locking in the show, regardless of how
well it does. CBS won stake of all six of its new shows -- the first time ever
a network has owned stake in an entire schedule.
[SOURCE: Wall Street Journal (B10), AUTHOR: Kyle Pope]
(http://wsj.com/)
MEDIA TALK: TV NETWORKS USING STRONG-ARM TACTICS
Issue: Television Economics
Under pressure to cut costs and increase profits, the television broadcast
networks sought concessions from program suppliers in exchange for choice
time slots. The concessions were primarily ownership stakes, but also
included rights to multiple showings of programs on TV and on new windows of
distribution like digital channels and the Internet.
[SOURCE: New York Times (C12), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/media-talk.html)

AS ASIA'S MTV AND CHANNEL V COMPETE FOR VIEWERS, THEY LOSE MONEY, PARTNERS
Issue: International
While Viacom's MTV says it reaches 100 million homes in Asia and Star TV's
Channel V says it reaches 146 million homes, neither know how many are watching
as Asian audience research is in its infancy. Since 1994, when Star TV had a
falling out with MTV and started its own company -- Channel V -- it has lost
$100 million. MTV Asia told the US Securities and Exchange Commission that it
lost $22 million last year. Meanwhile partners in the two companies are
downgrading their stake. The British record company, Polygram, has dropped its
stake in MTV Asia from 50% to 26%. BMG and Turner Broadcasting have declined
their stake in Channel V to 9% each. While some question if there is a market
for two music channels in Asia, it isn't likely to happen soon. "What has to
happen," says Steve Smith of Channel V, "is that Rupert [CEO of StarTV] and
Sumner Redstone [CEO of Viacom] persisted in holding on to get MTV Asia and
Channel V on their radar screen for the same 10 minutes or so." MTV Asia's
Frank Brown says there hasn't been talk of a merger for months and it is a
"dead issue."
[SOURCE: Wall Street Journal (B3E, AUTHOR: Michael Flagg]
(http://wsj.com/)

ADDITIONAL DBS CAPACITY FOR ECHOSTAR
Issue: Satellite/Competition
From FCC News Release: The Commission cleared the way for Direct Broadcast
Satellite (DBS) to compete more effectively with cable television providers
by approving the transfer of authorizations to provide DBS programming from
MCI Telecommunications Corporation (MCI) to EchoStar North America Corp.
(Echostar). Despite increases in the number of subscribers to DBS systems,
cable TV systems remain the dominant supplier in what is called the
multichannel video program distribution (MVPD) market, and this transaction
will allow EchoStar to become a stronger competitor. As a result, consumers
should benefit from the increased competition that should lead to increased
program offerings and options and/or lower prices in the marketplace for
multichannel video programming. Specifically, the FCC approved the transfer
of an authorization to construct, launch and operate a high-powered direct
broadcast satellite (DBS) service on 28 channels at 110 degrees W.L. The
Commission found that acquisition of this additional satellite capacity by
EchoStar is in the public interest because it enables EchoStar to increase
substantially its number of program offerings, and to compete more
effectively with cable in the multichannel video program distribution (MVPD)
market.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/International/News_Releases/1999/nrin9019.html)

LOW POWER FM PROPOSAL
Issue: Radio
Commission Grants 60 Day Extension of Time to File Comments on Low Power FM
Proposal. Comments Due August 2, 1999. Reply Comments Due September 1, 1999.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/Orders/1999/fcc99112.txt)

MERGERS

OLIVETTI'S WIN MAY RESHAPE TELECOM INDUSTRY
Issue: International/Mergers
Telecom Italia shareholders defected on the last day of Olivetti's offer,
giving Olivetti the go ahead to takeover the company. Olivetti will sell off
its shares in Infostrada, a fixed-line operator, Omnitel Pronto Italia, and
Germany's Mannesmann to pay the $33 million it will cost to acquire 51.2% stake
in Telecom Italia. Olivetti will also go into debt, making the deal a gamble to
shift the company away from monopoly culture. By winning this hostile
takeover, Olivetti is sending a message to other European companies, that the
seamless market created by the Euro, "the traditional clubby way of doing
business" in Europe is over: "The process of European integration will
encourage such operations, making it more like the US," said Olivetti Chief
Executive Roberto Colannino. The merger between Deutsche Telekom and Telecom
Italia seems unlikely to go through, analysts say. State-controlled Deutsche
Telekom was in merger talks with Telecom Italia in order to stop the Olivetti
takeover. The merger will strengthen Deutsche Telekom's rival Mannesman, by
acquiring Olivetti's assets. Big telecommunications companies will now be under
more pressure to find alliances in the rapidly consolidating industry.
Mannesmann has offered an additional 2% stake to Bell Atlantic, increasing Bell
Atlantic's stake to 21%.
[SOURCE: Wall Street Journal (A22), AUTHOR: Deborah Ball]
(http://wsj.com/)
See also
THE EXECUTIVE WHO CAPTURED TELECOM ITALIA (NYT)
[SOURCE: New York Times (C1), AUTHOR: John Tagliabue]
(http://www.nytimes.com/yr/mo/day/news/financial/telecom-olivetti.html)

FCC

FCC OPEN MEETING
Issue: FCC
The Federal Communications Commission will hold an Open Meeting on the
subjects listed below on Thursday, May 27, 1999, which is scheduled to
commence at 9:30 a.m. in Room TW-C305, at 445 12th Street, S.W., Washington,
D.C. Items include 1) funding of erate program, 2) high-cost support for
non-rural carriers, 3) the forward-looking economic cost model (I know your
heart is racing, but remember, this isn't until Thursday), and 4) the
efficiency with which telecommunications carriers use telephone
numbering resources.
[SOURCE: NECA]
Info should be available at URL below soon.
(http://www.fcc.gov/Bureaus/Miscellaneous/Public_Notices/Agenda/1999/agenda.
html)

--------------------------------------------------------------

Communications-related Headlines for 5/20/99

INTERNET
Bliley Introduces Bill to Block "Toll Booths" on The Information
Superhighway (House)
Content Vs. Commerce Online (WP)
FCC Seeks Good Way to Separate Cable, Internet (SJ Merc)
World of Choices to Plug In to the Net (NYT)
Writing Their Own Menus (WP)

DEMOCRACY AND TECHNOLOGY
Internet Political Donations May Qualify for Matching Funds (NYT)
Mobilizing Online for Gun Control (NYT)
Citizens' Electronic Inquiries Get Governments' Attention (NYT)
Company Proceeds with Government Search Service (NYT)

TELEVISION
Taking A Critical Look at TV (WP)
Study Finds TV Trims Fiji Girls' Body Image and Eating Habits (NYT)
NBC Is Considering Quitting The NAB (WSJ)
CBC Shelves Fall Mob Series As Too Violent (WSJ)
Citizens' Electronic Inquiries Get Governments' Attention (NYT)
DTV Receiver Compatibility with Cable Television Service (FCC)

EDTECH
Helping Children to Navigate Their World (NYT)

WIRELESS TELEPHONY
A Race to the Wireless (NYT)
Report: Wiretaps On Cell Phones, Pagers, E-Mail Tripled Last Year (USA)

INTERNET

BLILEY INTRODUCES BILL TO BLOCK "TOLL BOOTHS" ON THE INFORMATION SUPERHIGHWAY
Issue: Internet/Legislation
Americans will continue to have full access to information on the Internet,
such as stock quotes used for on-line trading, under a bipartisan bill
introduced by Chairman Tom Bliley (R-VA). H.R. 1858, The Consumer and
Investor Access To Information Act of 1999, provides new protection to
publishers of electronic databases, while ensuring that public access to
information will not be limited by publishers' asserting a proprietary right
over facts and information, which historically have been part of the public
domain. The bill also provides database publishers protections against
database theft of their databases. The bill's anti-theft protections will
also protect institutions like the stock exchanges from hackers and pirates
seeking to undermine the integrity of the data they disseminate to the public.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/47b306c9f0a69f47852567050
069a969/47bc21059822e338852567760076feb4?OpenDocument)

CONTENT VS. COMMERCE ONLINE
Issue: Advertising
Walker brings forth for today's discussion the growing trend in the world of
online publishing to go commercial. She cites the recent friction between two
top online publications, Slate and Web "zine" Salon, and states her concern for
publications that are revamping their Web sites and placing more ads in efforts
to attract more commercial revenue. They are "building a profitable business
around serious online commentary," in efforts to survive the competition she
says. "It's all part of an intense mating dance going on all across the Web
between online content and commerce. The sad fact is that many serious content
sites are drawing in less traffic than corporate sites that amount to little
more than marketing brochures." Ironically, Slate who is a traditional rival of
Salon, is one of the biggest advertisers on Salon's Web site, showing that the
drive to sell can result in strange bedfellows.
[SOURCE: Washington Post (E1), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/20/086l-052099-idx.html)

FCC SEEKS GOOD WAY TO SEPARATE CABLE, INTERNET
Issue: Broadband
On Wednesday, Federal Communications Commission Chairman William Kennard said
the commission has the right to impose regulations on cable companies offering
Internet service, but added that he has yet to hear an effective proposal
prevent discrimination by operators of cable broadband services. AOL Chairman
Steve Case, who also spoke at the congressional briefing, argued for a law that
prohibits cable companies from bundling content with high-speed Internet
connections for consumers. Many Internet services providers and consumer groups
are concerned that cable companies will soon dominate the high-speed lines into
American households since they are not subject to the same regulations as are
telephone companies that offer Internet access. "We have a disparity -- that's
clear," agrees Chairman Kennard. "The more difficult question, in my view, is
if we assert jurisdiction what do we do?"
[SOURCE: San Jose Mercury News, AUTHOR:(Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/026102.htm)

A WORLD OF CHOICES TO PLUG IN TO THE NET
Issue: Internet Access
"Based on the correspondence we've received, and its emotional content,
choosing an I.S.P. seems to rank somewhere between selecting a long-distance
phone service and choosing a caterer for a bar mitzvah," Dr. Dawn McGatney,
a Maryland pediatrician and Webmaster, wrote. Dr. McGatney runs a site
called Compleat Guide to an I.S.P. You'll Enjoy Using
(dogwolf.seagull.net/isp.html). "But we hear from many folks who are now on
their fifth or higher I.S.P.," she added. "Once you switch one to two times,
it's obviously easier. There is a bit of fear of the unknown here."
According to the Strategis Group, a Washington-based research company that
studies patterns in telecommunications use, nealy 37% of home Internet users
have changed their ISP since January. There are ~4,500 ISPs available across
the country, this URL
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20ispp-side.htm
l) compares the top eight providers (measured by subscribers). A related
article
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20hint.html)
highlights seven questions a customer should ask when shopping for a new
provider.
[SOURCE: New York Times (D1), AUTHOR: Tina Kelley]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20ispp.html)

WRITING THEIR OWN MENUS
Issue: Broadband
America Online hosted a full-day session yesterday in an effort to tame wild
conversation and "gossip about what the world's largest online service will do
next" with broadband technology. Analysts have been wondering if AOL would be
late in offering high-speed Internet services, especially after its failure to
be included in AT&T's deal to purchase MediaOne Group., a cable company. AOL
spokeswoman Ann Brackbill, eased some concerns with the disclosure of AOLs 5.0,
"the newest version of the online service's access software" to be out later
this year. The AT&T-MediaOne deal, however, was unmentioned. Ulric Weil, an
analyst with investment bank Friedman, Billings, Ramsey Group Inc. in Arlington
(VA), said they "downplayed the need for broadband altogether." In the author's
words, they were "consistently referring to it as an 'add-on' while touting
their plans to offer another type of high-speed access: digital subscriber line
service, or DSL."
[SOURCE: Washington Post (E1), AUTHOR: Shannon Henry]
(http://search.washingtonpost.com/wp-srv/WPlate/1999-05/20/023l-052099-idx.h
tml)

DEMOCRACY AND TECHNOLOGY

INTERNET POLITICAL DONATIONS MAY QUALIFY FOR MATCHING FUNDS
Issue: Internet & Politics/Campaign Finance
The Federal Election Commission is expected to change rules and make credit
card donations to campaigns eligible for Federal matching funds. Most 2000
Presidential candidates have Web sites that allow credit card donations. The
first $250 of each individual contribution to a Presidential candidate is
matched with taxpayers' money as long as the candidates spend $40 million or
less in the primaries. Some FEC officials had been concerned that credit
card donations do not have the same level of documentation or security as
checks, but these reservations are giving way to a desire to encourage
Internet political activity. "2000 will be a groundbreaking year for
Internet campaigning," said Steve Forbes' press secretary. "The Internet
will be to the 2000 election what television was to the Nixon-Kennedy
election."
[SOURCE: New York Times (A21), AUTHOR: NYT]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/20fundraising-in
ternet.html)
See also:
ONLINE CAMPAIGN DONATIONS READY TO TAKE CENTER STAGE
[SOURCE: San Jose Mercury News, AUTHOR: Jim Puzzanghera]
(http://www.mercurycenter.com/svtech/news/indepth/docs/online052099.htm)

MOBILIZING ONLINE FOR GUN CONTROL
Issue: Online Activism
Move On, a citizen's advocacy group (www.moveon.org), gathered 500,000
electronic signatures during the impeachment of President Clinton. An
ancillary campaign, We Will Remember, has received pledges of $13 million
and 700,000 volunteer hours for the 2000 political campaigns. Recently, Move
On has turned its attention to gun control and delivered hard copies of
70,000 petition signatures urging Congress to "accept its proper role in
regulating firearms." 100,000 individual email messages have been sent
through the site to senators around the nation. Move On was started, in
part, by Joan Blades and Wes Boyd -- they founded Berkely Systems which
created After Dark, the popular screen-saver program. ""I think this
discrepancy between what is going on inside the Beltway and public opinion
outside the Beltway is the key similarity with the Gun Safety First
petition. Our intention is just to allow people to become involved, become a
five-minute activist if you want to" said Ms. Blades.
[SOURCE: New York Times (D5), AUTHOR: Kate Hafner]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20move.html)

CITIZENS' ELECTRONIC INQUIRIES GET GOVERNMENTS' ATTENTION
Issue: Access to Government Info
Government officials are now receiving -- and answering -- inquires via
email. "Agencies are learning how to use this tool to answer questions and
to provide information," said Greg Woods, an Education Department official
who is chairman of the Government Information Technology Services Board,
part of Vice President Al Gore's initiative on reinventing Government. The
story provides links to many useful Web sites, but admits that the glut of
information may make some human intervention necessary. Agencies' policies
are still inconsistent and some would rather citizens call or write them
instead of using email. "The ideal Web site is to answer as many questions
as possible, so the last option is to send an e-mail which requires a person
to intervene and answer a question," said Rich Kellet, division director for
Emerging Information Technology Policies at the General Services
Administration. "e-mail is a difficult issue because of the volume and the
potential for huge volume. So agencies are still working on how to answer
those issues."
[SOURCE: New York Times (D8), AUTHOR: Rita Beamish]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20govt.html)

COMPANY PROCEEDS WITH GOVERNMENT SEARCH SERVICE
Issue: Government Information
Northern Light Technology, the company that partnered with the Department of
Commerce to offer a new fee-based government search engine, has announced that
it will continue to offer the service with, or without the government's
support. Shortly after the service, Gov.Search was launched on Monday, Commerce
Department officials decided to halt the collection of fees and review if it
conflicted with the Administration's policy of unlimited access to government
information. Northern Light is offering the service on a free trial basis for
the next two weeks. The Commerce Department spokesman Morries Goodman, says the
agency "will have to rethink our partnership," if the company begins to
institute fees after two weeks without the Administration's approval. According
to Northern Light President and CEO David Seuss, "the service will remain up.
Commerce doesn't have to be associated with this if they don't want it."
[SOURCE: CyberTimes, AUTHOR: ]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/20search.html)

TELVESION

TAKING A CRITICAL LOOK AT TV
Issue: TV Violence
High schools students at Walter Johnson High School in Bethesda recently
participated in a "media session" to discuss the Littleton (CO) tragedy and its
relationship to media violence. They also addressed general issues on violence
and sports and violence and television news. The reactions varied from
amazement to in-depth self-reflection, "Normally you might just block the
violence out because it goes on all the time. But this really made you pay
attention," said William While, 15. "It just showed you what's out there, and
how inundated we are." Sponsored by the Maryland Department of Education and
Discovery Communications, the forums provide opportunities for elementary to
high school students to critically analyze not only the content shown on
television, but their own perceptions of it. Feedback from the sessions in
Maryland will be used for nationwide forums to be presented next year.
[SOURCE: Washington Post (B2), AUTHOR: Manuel Perez-Rivas]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/20/196l-052099-idx.html)

STUDY FINDS TV TRIMS FIJI GIRLS' BODY IMAGE AND EATING HABITS
Issue: Media & Society
A new study from the American Psychiatric Association finds that eating
disorders are on the rise in Fiji where they were virtually unheard of
before. The research began one month after satellite television became
available in the region. Girls who said they watched television three or
more nights/wk in the 1998 survey were 50% more likely to describe
themselves as "too big or fat" and 30% more likely to diet than girls who
watched television less frequently, Goode reports. Before television became
available, there was little talk of dieting in Fiji where "You've gained
weight" is a traditional compliment.
[SOURCE: New York Times (A13), AUTHOR: Erica Goode]
see (http://www.nytimes.com/yr/mo/day/world/) URL below was not available
this morning
(http://www.nytimes.com/yr/mo/day/news/national/science/hth-fiji-diet.html)

NBC IS CONSIDERSINF QUITING THE NAB
Issue: Television
Indicative of the growing schism between the television networks and their
affiliate stations, NBC is considering withdrawal from the major lobbying and
trade association of local stations, the National Association of Broadcasters.
NBC does not agree with the NAB's opposition to lifting station ownership
limits. Current rules limit companies to owning a number of stations that reach
no more 35% of the nation's homes. While the network are eager to have these
restrictions lifted or erased altogether, most affiliate stations fear that
relaxed ownership rules would only give greater market share to the ABC, CBS,
NBC, and Fox. NBC claims that the desire to save costs would responsible for
any defection from the trade association.
[SOURCE: Wall Street Journal (B2), AUTHOR: John Lippman]
(http://wsj.com/)

CBS SHELVES FALL MOB SERIES AS TOO VIOLENT
Issue: Television/Content
As a result of growing concern about the role of violence in the media, CBS has
decided to cut one of the most talked about shows to debut this fall. The
program, "Falcone," is a TV version of an organized crime movie staring Al
Pacino. "It's not the right time to have people whacked in the streets of New
York."
said CBS Television President Leslie Moonves, who screened the pilot just days
after the shooting in Littleton (CO). "It just didn't feel right." The show
might still appear at a later date, according CBS, who stands to make large
profits if it became a hit. In general, crime dramas are seemingly absent from
the networks new fall lineup.
[SOURCE: Wall Street Journal (B1), AUTHOR: Kyle Pope]
(http://wsj.com/)

DTV RECEIVER COMPATABILITY WITH CABLE TELEVISION SERVICE
Issue: Digital Television/Cable
The Commission's Office of Engineering and Technology, in cooperation with
the Office of Plans and Policy, will host a roundtable to discuss technical
issues and progress towards development of standards related to
compatibility between digital television (DTV) services provided by cable
and other video distribution services and consumer electronics equipment. **
Thursday, May 20, 1999 9:30 a.m. - 12:30 p.m. (eastern) ** Available on the
FCC Internet Audio Broadcast Home Page at www.fcc.gov/realaudio. See topics
and speakers at
(http://www.fcc.gov/Bureaus/Engineering_Technology/Public_Notices/1999/pnet9
009.html).
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Engineering_Technology/Public_Notices/1999/pnet9
008.html)

EDTECH

HELPING CHILDREN TO NAVIGATE THEIR WORLD
Issue: EdTech
Building social skills through a computer? Slade's article looks at software
that provides the tools for youngsters to try out and try on a range of
responses to real-world social situations. "The computer is nonthreatening,"
said Arthur Pober, an educational psychologist and child and family
counselor who is executive director of the Entertainment Software Rating
Board. "It is not another child on the block who can physically confront
your kid. It is not a parental figure, who mandates certain conduct. It can
be neutral." Basically, the software is storytelling that allows children to
choose between two or more options. The best software includes materials for
parents, as well. "The idea is that parents can act as their children's
counselors," Dr. Pober said, "which in these sticky situations is precisely
what they are supposed to be." Examples reviewed are Roberto Joins In,
Captain Kangaroo: Life's First Lessons, and Choices, Choices: On the
Playground.
[SOURCE: New York Times (D10), AUTHOR: Margot Slade]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/20libe.html)

WIRELESS TELEPHONY

A RACE TO THE WIRELESS
Issue: Wireless
A look a Psion, a British company that is a major player in the race to
provide the software for "smart phones." Symbian, a consortium that includes
Psion, Ericsson, Nokia, Motorola, Nippon Telegraph and Telephone, and Sun
Microsystems, is competing to set the standard against Microsoft's Windows
CE. "It's a market that's just developing, but it's a crucial market," said
Sean Faughnan, a technology analyst with J.P. Morgan in London. "Symbian
looks like a very credible challenger."
[SOURCE: New York Times (C1), AUTHOR: Alan Cowell]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/20palm.html)

REPORT: WIRETAPS ON CELL PHONES, PAGERS, E-MAIL TRIPLED LAST YEAR
Issue: Privacy
According to a report by the Administrative Office of the U.S. Courts, wiretaps
on cellular phones and pagers now outnumber wiretaps on conventional
telephones. The report also said that wiretaps placed by state and federal
police on cell phones, pagers, e-mail and other electronic communication
devices nearly tripled last year. Made easier by advances in technology, taps
on wireless communication have increased from 206 in 1997 to 576 in 1998. While
federal and many state laws require police to convince a judge that a wiretap
is necessary, only two requests of 1,329 were turned down last year. Critics
fear that this points to neglect by judges in their roles as overseers.
[SOURCE: USA Today (A1), AUTHOR: Richard Willing]
(http://www.usatoday.com/life/cyber/tech/ctf213.htm)

--------------------------------------------------------------

Communications-related Headlines for 5/19/99

** Sorry, yesterday we misreported that Matt Drudge works for MSNBC --
actually, he has an one hour weekly show on Fox Cable, a reader writes. **

INTERNET
U.S. Suspends Fee On New Internet Search Site (SJ Merc)
Computing Centers Become The Keeper of Web's Future (NYT)
Tune In Tomorrow For TV On Web (USA Today)
Films Illegally Hit Net, But It's Slow Going (USA Today)

EDTECH
Educator Questions Need For Computers in Classroom (CyberTimes)

MEDIA & SOCIETY
TV Violence Hearing (Senate)

TELEPHONE REGULATION
Court Halts FCC Action on Phone 'Slamming'

INTERNET

U.S. SUSPENDS FEE ON NEW INTERNET SEARCH SITE REUTERS
Issue: Government Information
The U.S. Commerce Department has decided to suspend a controversial fee
attached to the use of a new Government search site. The search engine, found
at (http://www.usgovsearch.com), will allow users to locate documents on
millions of different government Web pages. Unveiled on Monday, the new site
drew quick criticism from both lawmakers and public interest advocates, who
objected to the public being charged to view documents they paid to create. The
service will remain free until at least June 1. In the meantime, the Government
will review the policy issues at stake.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/072579.htm)

COMPUTING CENTERS BECOME THE KEEPER OF WEB'S FUTURE
Issue: Internet Infrastructure
In a special report, the authors look at a trend towards centrally storing
information and computer power -- just the reverse of what we've seen since
personal computers started to proliferate in the 1980s. Large "server farms"
offer economies of scale to corporate clients and are powerful nodes on the
Internet, making information more readily available to individuals. "People
want to own their own information but they don't want to maintain it, and
that is driving the shift toward centralization," said Adele Goldberg, a
member of the team at Xerox Palo Alto Research Center in the early 1970s
that created the founding concepts of personal computing. Because of the
Internet, companies are starting to embrace centralized computing again for
the first time in decades. "A real mind shift is under way in corporate
America," Scott Winkler, an analyst at Gartner Group, a research firm, said.
"In a society where knowledge is power, centralized knowledge is centralized
power," said Richard Sobel, a fellow at the Berkman Center for Internet and
Society at the Harvard Law School.
[SOURCE: New York Times (A1), AUTHOR: Steve Lohr & John Markoff]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/19net.html)

TUNE IN TOMORROW FOR TV ON WEB
Issue: Broadband
Producers, directors, and other creatives are increasingly working with
digital technology to create programming they hope will be distributed
nationwide as high-speed cable modems and digital subscriber phones become
more accessible. One such creative is film director Randal Kleiser (director
of Grease and Blue Lagoon) who has just created the drama "Royal Standard"
for the new Digital Entertainment Network -- an Internet hub of TV-type
programming. Kleiser says despite the quality of viewing that is not unlike
flipping through a book of stills, he is enthralled with the new way of
distributing imagery. Jupiter Communications estimates that by 2002, 6.8
million homes will have cable modems -- up from 1.2 million this year -- and
half a million homes will have digital phone lines by 2002. Digital
programmers hope to garner an audience early in order to gain "prime
positioning" when high-speed delivery services are controlled by a small
number of companies. American Interactive Media (AIM) will launch "a real
life action hub" called CrimeBeat next month. AIM president Mark Graff says
as more bandwidth becomes available, AIM will have an audience and marketing
in place. The Independent Film Channel, a subsidiary of cable's Bravo
Network, plans to offer digital video movies via a cable modem and also air
the movies on cable TV. Bravo's Joe Cantwell says their target audience is
not being served by analog or digital TV and they hope to be able to do more
for a smaller audience.
[SOURCE: USA Today (D6), AUTHOR: Bruce Haring]
(http://www.usatoday.com/life/cyber/tech/ctf201.htm)

FILMS ILLEGALLY HIT NET, BUT IT'S SLOW GOING
Issue: Intellectual Property
Over the past few weeks, the Motion Picture Association of America (MPAA) has
referred a dozen movie piracy cases to the FBI. With a high powered computer
and the patience to download, major film titles, including The Matrix, Saving
Private Ryan, Antz and Shakespeare in Love are available on the Internet. The
MPAA fears the anonymity of the Internet will make piracy more likely. Internet
piracy is a fairly simple process of using a digital camcorder to record a film
and upload the film onto the Internet. Larry Iser, a Los Angeles lawyer who
deals with intellectual property issues, says the problem is not so widespread.
Few individuals have the computer power to download a feature length film
and the
picture is appears jerky on most home computers. But, as digital distribution
technologies improve, Hollywood expects Internet sites will start making deals
with filmmakers.
[SOURCE: USA Today (D1), AUTHOR: Bruce Haring]
(http://www.usatoday.com/)

EDTECH

EDUCATOR QUESTIONS NEED FOR COMPUTERS IN CLASSROOM
Issue: Education Technology
At an education policy conference Monday in Washington (DC), Gary Chapman,
Director of technology and society research project at the University of
Texas, called President Clinton's computer-in-every-classroom proposal a
"mostly political pledge." Chapman, former executive director of Computer
Professionals for Social Responsibility, argued that high school graduates
should understand how computers work and should have mastered basic skills,
such as word processing, spreadsheet programs, email and Internet. In
addition, they should understand what is rarely taught today -- "how to
behave in cyberspace." But, he says, with school districts strapped for cash
these skills can be taught without a computer room or multimedia lab just as
well. Funds would be better spent on teacher salaries and school repairs,
Chapman said. Linda Roberts, director of the Office of Educational
Technology at the Department of Education, defending President Clinton's
approach by saying that technology cannot be used to its full potential "if
it is located somewhere down the hall." She also noted that $5 million
estimated annual expense on school technology is a small investment in
comparison to the $284 billion education budget. Chapman believes the
government should fund technical support for schools and good education
software, but he criticized federal officials for overselling school
technology. Referring to the graduate students he teaches, Chapman noted it
is rare for him to encounter students who are incompetent with computers,
but it is not so rare to encounter students who can't write or speak well.
"I don't think computers will solve that problem." he said.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/05/cyber/education/19education.html)

MEDIA & SOCIETY

TV VIOLENCE HEARING
Issue: Media & Society
Senator Hollings (D-SC) introduced a bill, S.876, legislation requiring the
Federal Communications Commission to create a time period when children are
protected from violent programming. URL below provides links to statements
and testimony from May 18th's hearing including: Sen John McCain's (R-AZ)
opening statement (http://www.senate.gov/~commerce/hearings/0518jsm.pdf),
Mr. Robert L. Corn-Revere, Adjunct Professor, Institute of Communications
Law, Columbus School of Law
(http://www.senate.gov/~commerce/hearings/0518cor.pdf), and Mr. James
Hamilton, Associate Professor of Public Policy, Duke University
(http://www.senate.gov/~commerce/hearings/0518ham.pdf).
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/hearings/hearings.htm)

TELEPHONE REGULATION

COURT HALTS FCC ACTION ON PHONE 'SLAMMING'
Issue: Telephone Regulation
Long-distance companies were let off the hook yesterday when a federal court
halted the FCC's moves to impose rules on their 'slamming' practices. The FCC
rules were meant to deter the companies from switching consumers to their
service without authorization, but MCI WorldCom, AT&T, Sprint and others argued
the rules to resolve such issues were too complicated for consumers. Others
said it would be a royal hassle. MCI WorldCom proposed that an independent
third party administrator be in charge of handling the 'slamming'
complaints. FCC Chairman William Kennard retorted: "MCI WorldCom itself has
been engaged in some slamming activity." According to the FCC rules,
consumers could withhold payments to the companies if they believed they
were slammed and the administration of the complaints would then be handled
by the customer's authorized carrier. MCI WorldCom said they hoped the FCC
would work towards finding an independent source of protection for consumers
and not rely on long-distance company regulation.
[SOURCE: Washington Post (E1), AUTHOR: Mark Wigfield, Dow Jones News Service]
(http://www.washingtonpost.com/)

--------------------------------------------------------------

Communications-related Headlines for 5/18/99

MEDIA & CHILDREN
TV Violence Hearing (Senate)
To Filter Or Not To Filter (CyberTimes)

UNIVERSAL SERVICE
Lower Phone Bills and Increase Internet Access (FCC)

JOURNALISM
Path From Old Media To New Becomes More Crowded (USA)
Dow Jones and Reuters Create Net Service for
Professionals (NYT)

MERGERS/ALLIANCES
Sound of F.C.C. Silence in a Big Merger (NYT)
ICC Seeks Details in Ameritech Deal (ChiTrib)
They Don't Look Like Babies Or Bells Anymore (WSJ)
Deutsch Telekom Makes Final Push (WSJ)

INTERNET
Commerce Dept. Shuts Web Site Over Fee Issue (WP)
Internet Board Asked To Slow Down Policy Vote (CyberTimes)
3 On-Line Book Retailers Cut Prices On Best Sellers (NYT)
Cable-Internet Regulation Debated (SJ Merc)

SATELLITES
Satellite Dish Out Strong Growth (USA)

MEDIA & CHILDREN

TV VIOLENCE HEARING
Issue: Television
Senator John McCain (R-AZ), Chairman of the Committee on Commerce, Science,
and Transportation, and Senator Fritz Hollings (D-SC), Ranking Democrat of
the Committee, announced the witness list for the hearing on TV violence.
Members will discuss legislation requiring the Federal Communications
Commission to create a time period when children are protected from violent
programming. Senator Hollings introduced the bill, S.876, on April 26. The
Full Committee hearing is scheduled for Tuesday, May 18, at 10:00 a.m. in
room 253 of the Russell Senate Office Building. Senator Hollings will
preside. Following is the tentative witness list. Panel I: Dr. Leonard Eron,
Professor of Psychology and Senior Research Scientist, Institute for Social
Research, University of Michigan and Mr. Arthur Taylor, President,
Muhlenberg College, Pennsylvania
Panel II: Mr. William Abbott, President, National Foundation to Improve
Television; Mr. James Hamilton, Associate Professor of Public Policy, Duke
University; and Mr. Dale Kunkel, Professor of Communication, University of
California Santa Barbara.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-62.htm)

TO FILTER OR NOT TO FILTER
Issue: Internet/Content/Regulation
The Internet Free Expression Alliance, a coalition of 13 national organizations
including the American Civil liberties Union (ACLU) and the Electronic Privacy
Information Center (ERIC), is requesting that an FCC-launched filter
information page include links to information about filters' shortcomings. The
coalition says they agree with the FCC's goal to educate parents on how best to
protect their kids, but fear that filter vendors gloss over the tendency of
filters to block out such topics as breast cancer, homosexuality, and AIDS.
This issue will likely come up on Thursday when the Senate Commerce Committee
will hold a hearing on Senator John McCain proposal that all schools and
libraries install filters before in order to receive Federal E-rate money.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/18capital.html)

UNIVERSAL SERVICE

LOWER PHONE BILLS AND INCREASE INTERNET ACCESS
Issue: Universal Service/Telephone Regulation
William Kennard, chairman of the Federal Communications Commission (FCC),
said today that consumers can reap the dual benefits of lower phone bills
and Internet access for all schools and libraries. He said this in a speech
to the National Consumers League in Washington (DC). In response to concerns
that full funding of the e-rate would boost phone bills, Chairman Kennard
said, "Your concern is one that I considered greatly in making this decision
[to recommend full funding]. And that's why along with funding the e-rate to
its cap, the FCC -- as we have done over the past two years -- is
substantially reducing other costs to America's long-distance carriers,
which they should pass along in lower rates to consumers. So even with
funding the e-rate to its cap, they will have available half a billion
dollars which can be - and should be - used to further lower long-distance
rates for American consumers." He told the National Consumers League, "Your
role is to use your unique ability to give voice to the concerns of American
consumers and tell these companies that this savings must be passed on to
the average American family, not just to the big, corporate customers."
Chairman Kennard mentioned the enormous success of the first year of the
e-rate program and the huge demand for second year funding. "By
fully-funding the e-rate program," he said, "we can meet this demand and
continue the work we've done this past year. By following this course, we
will be able to wire 528,000 additional public school classrooms to the
Internet. If we meet this high demand, we will be able to help schools that
teach 40 million American children. And only by funding at this level, will
we be able to reach the children of rural America. In fact, with this
funding, we'll be able to connect one-third of public schools throughout
rural America."
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9030.html)

JOURNALISM

PATH FROM OLD MEDIA TO NEW BECOMES MORE CROWDED
Issue: Journalism/Internet
This month Peter Arnett, the former CNN veteran reporter, announced he would
join the new Foreign TV.com -- an international video news service to be
launched next month. The service will feature interviews with world leaders
that will be available for online viewing. Arnett says moving from TV to the
Internet be not unlike what he did 20 years ago when he left the Associated
Press for a much-speculated 24-hour news channel -- CNN. For journalists who
have moved from print to online, the attraction is to tread in new territory as
well as the ability to interact with readers? When Herb Greenberg, a columnist
for online financial publication, TheStreet.com, left the San Francisco
Chronicle to go online in 1995 he, "became enchanted by the infectious and
responsive spirit of the online audience." David Talbot, chairman and founder
of Salon, a San Francisco-based online magazine, says many still think that
online journalism equals MSNBC's "gossip columnist" Matt Drudge who publishes
unconfirmed information. As more and more print and TV journalists move online,
Greenburg says it will not be long before the Internet is thought of as, "just
another medium to convey news."
[SOURCE: CyberTimes, AUTHOR: Lisa Napoli]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/18media.html)

DOW JONES AND REUTERS CREATE NET SERVICE FOR PROFESSIONALS
Issue: Internet Content/Alliances
Perennial rivals Dow Jones and Reuters are teaming up to create an
Internet-based corporate news and information service. Articles from Dow
Jones Interactive and Reuters Business Briefing will be distributed along
with archives of their own and other outlets. News will be delivered within
couple of hours of when it happens. The wire services for the two companies
will remain separate and competitive. The companies will be competing with
Dialog whose chief executive said: "What is interesting to note is that this
new service will be comprised mainly of news. As we have said many times
before, news is increasingly a commodity, available for free on numerous
Internet sites. In this context, news-only services are more and more
difficult to sell on a stand-alone basis."
[SOURCE: New York Times (C10), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18dow.html)

MERGERS

SOUND OF F.C.C. SILENCE IN A BIG MERGER
Issue: Mergers
Federal Communications Commission reaction to the $37 billion US West-Global
Crossing merger was restrained: FCC Chairman William Kennard told a meeting
of the National Consumers League in Washington, "We have to be careful in
trying to be too categorical about this -- in saying that all mergers are
bad, that we've reached a point where we can't have any more mergers. They
all have different competitive dynamics." The last time a local phone giant
and a long distance company -- SBC and AT&T -- talked about merger, then-FCC
Chairman Reed Hundt said it was "unthinkable." Talks of a merger ended
before an official announcement. Even though the players in the latest
merger aren't as big as SBC and AT&T, the Baby Bells are reading into
Chairman Kennard's words (or lack thereof) that their time has come and
widespread entry into long distance is not far away.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18phone.html)
See also:
WINNICK WEAVES A SINGLE CABLE INTO A EMPIRE
[SOURCE: New York Times (C2), AUTHOR: Andrew Pollack]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18winn.html)

ICC SEEKS DETAILS IN AMERITECH DEAL
Issue: Mergers
In their second deliberation session on the SBC-Ameritech merger, Illinois
Commerce Commissioners discussed how to open Ameritech's local phone markets
in the state to competition and how to pass savings on to consumers. In
Texas, SBC has implemented what is known as "common transport" -- which
allows competitors to connect to central offices at attractive prices.
Although Ameritech has been ordered to do so, the company still has not
achieved it. Also, when the deal was first announced, executives from the
companies spoke about cost reductions of $1.4 billion, but are now saying
the figure is $31 million.
[SOURCE: Chicago Tribune (Sec 3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905180241,00.html)

THEY DON'T LOOK LIKE BABIES OR BELLS ANYMORE
Issue: Telephony
Over the past decade, the Baby Bells--formed by the 1984 divestiture of
AT&T--have grown to be large and diverse telephone titans. In a recent example,
US West's has announced a merger with Global Crossing to create an underwater
cable network connecting the continents. And if Bell Atlantic and GTE;s merger
is approved, they will have access to a national long distance network. Bell
South has also been busy, investing in Latin American wireless assets, seizing
an important opportunity to expand south of the boarder. "These companies have
very different aspirations," said Analyst Brian Adamik. "They all want to be in
the long distance business, they all want to be global, but how they go about
doing it shows the difference between them." They have all, however, avoided
one strategy for expansion; none of the Baby Bells has genuinely attempted to
compete with another to provide local service.
[SOURCE: Wall Street Journal (B1), AUTHOR: Stephanie Mehta]
(http://wsj.com/)

DEUTSCH TELEKOM MAKES FINAL PUSH
Issue: Merger/Telephony
In a final effort to acquire Telecom Italia, Deutsche Telekom's CEO Ron Summer
is attempting to convince shareholder of the long-term benefits that a combined
company will reap. Olivetti's hostile takeover bid of $65 billion will expire
on Friday. Mr. Sommer only has until then to convince investors that joining
forces with the Italian phone company is an important opportunity, and perhaps
an a first step in to entering the US market.
[SOURCE: Wall Street Journal (A23), AUTHOR: William Boston]
(http://wsj.com/)

INTERNET

COMMERCE DEPT. SHUTS WEB SITE OVER FEE ISSUE
Issue: Access to Government Info
Gov.search, a new fee-based web site launched yesterday by the National
Technical Information Service (NTIS), was shut down by the Commerce Dept. soon
after public interest advocates and federal officials rasied questions as to
whether it complies with laws on public access to government documents. The Web
site allows users who pay a fee -- $15 for a one-day pass or $30 for monthly
access -- to search for documents on federal Web sites and government archives
simultaneously. At yesterday's press conference to introduce the service,
critics demonstrated concern about paying for documents that might otherwise be
free on other federal Web sites. They also expressed discontent about current
NTIS policy that charges fees for accessing federal information in its 50-year
archive, CD-Roms and other information products. They believe that more
information on court decisions and congressional voting records should be made
public on the Web. It is estimated that Gov.search will be put on hold for 24
to 48 hours until the service has been properly reviewed. "We are going to
review the fee for this subscription service to see if it is consistent with
the administration's policy on providing open and unrestricted access to public
information," Commerce Department spokesman Morrie Goodman said.
[SOURCE: Washington Post (E3), AUTHOR: Leslie Walker]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/18/017l-051899-idx.html)
See also:
U.S. SEARCH ENGINE IS STOPPED HOURS AFTER DEBUT
[SOURCE: New York Times (C6), AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18gov.html)

INTERNET BOARD ASKED TO SLOW DOWN POLICY VOTE
Issue: Internet/Regulation
Last week a group of technologists, policy annalists, and lawyers submitted a
petition to the Internet Corporation for assigned Names and Numbers (ICANN)
asking that the board takes its time in adopting new rules set by the World
Intellectual Property Organization (WIPO) to combat cybersquatting. The
petition requests that ICANN wait until the rules can be considered by ICANN's
supporting organizations that are still being formed.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
http://www.nytimes.com/library/tech/99/05/cyber/articles/18capital.html

3 ON-LINE BOOK RETAILERS CUT PRICES ON BEST SELLERS
Issue: E-Commerce
Amazon.com, Barnesandnoble.com, and Borders.com will cut the prices on
best-selling books by 50% in a move that will probably mean they will all
lose money on such sales. "There are three things that drive this business,"
said Bill Curry, a spokesman for Amazon. "It's selection, price and
convenience. And we are constantly working on all three of these things.
We've added convenience with distribution centers that will get merchandise
faster to customers. And this is an opportunity to do something with price."
A number of new companies are helping book buyers compare prices through Web
services. "People are using these comparison tools," said Kate Delhagen,
director of online retail strategies for Forrester Research. "And what
Amazon is doing is making sure that they are there. It's definitely a
defensive strategy being deployed, but it's also part of their increasing
energy to add customers to their data base."
[SOURCE: New York Times (C10), AUTHOR: Doreen Carvajal]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/18book.html)
See also:
ONLINE BOOKSELLERS JOCKEY WITH PRICE CUTS
[SOURCE: Washington Post (E3), AUTHOR: David Streitfeld]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/18/080l-051899-idx.html )

CABLE-INTERNET REGULATION DEBATED
Issue: Cable
AT&T's proposed acquisition of MediaOne has stirred a growing debate as to
whether data, phone, and Internet services of cables companies should be
regulated. Bell Atlantic is pressuring the Federal Communications Commission to
block the AT&T/MediaOne deal, on the grounds that the joint company would be at
a competitive advantage over other Internet providers, which are regulated. "It
is a discrepancy there is no question about it," admitted William Kennard,
Chairman of the FCC. "My position in the past has been that we have to be very,
very careful about injecting government in a marketplace like the Internet
which has thrived quite well without a lot of government intervention. We need
to proceed very cautiously ... before we say yes regulate or don't regulate."
[SOURCE: San Jose Mercury News, AUTHOR: Jeannine Avaesa]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/451808l.htm)

SATELLITES

SATELLITE DISH OUT STRONG GROWTH
Issue: Satellite
Satellite broadcasters are forging new strategies to compete with cable
operators in the race to deliver new services. Industry analyst, Robert
Kaimowitz says that cable upgrades are so slow that satellites companies are in
a better position. Although cable still leads satellite with 66 million
subscribers, satellite numbers are rising (by 26% to 11.2 million in the 12
months ending in March) and customers become more familiar with equipment. The
biggest problems consumers have with satellite is the need to use a an antennae
cable to get local stations. A bill was approved in the House and is set to go
before the Senate this week that would allow satellite companies to transmit
some local stations. If approved, Echostar plans to offer local stations in 30
markets while DirecTV plans to provide local TV to 20 markets. These satellite
companies are also trying to match cable's advantage of interactive capability.
Last week DirecTV and American Online announced a partnership that would offer
Internet service to satellite subscribers who have a set-top box. This week
Echostar begins delivering its set-top-box to subscribers and will depend on
phone companies for Internet connection.
[SOURCE: USA Today (p. 2B), AUTHOR: David Lieberman]
(http: //www.usatoday.com)

--------------------------------------------------------------

Communications-related Headlines for 5/17/99

TELEVISION
TV Networks Are Scrambling To Deal With Era Of New Media (NYT)
Network Advanced Ad Sales Are Seen Rising (WSJ)
TV Violence (Senate)
Speech: National Association of Broadcasters (NTIA)

INTERNET
Children's Internet Protection (Senate)
The Web's Identity Crisis (WSJ)
Interest in Online Bill Payment Grows (CyberTimes)
Net Site Seeks To Build Bridges (SJ Merc)
Computer Companies Cater To Elderly (SJ Merc)
Search Engine Provides Quicker Response, Ads (NYT)
Federal Web Sites Joined by Gov.search (WP)
A Public Discussion Regarding the Management and Administration of
.us Domain Space (NTIA)

TELEPHONY/MERGERS
SBC and Ameritech: Let Them Play (ChiTrib)
US West and Global Crossings to Announce Plans to Merge (WP)
Access to Buildings and Facilities by Telecommunications
Providers (House)
Start-Up Leads Phone Cause In Battle For Internet Access (NYT)
Speech: Communications Law in the Next Millennium Conference (NTIA)

FCC REFORM
Federal Communications Commission Reform:
The States' Perspective (House)

NEWSPAPERS
Efforts To Reinvent The Los Angeles Times Falter (NYT)

ANTITRUST
Judge's Query Spawns Scenarios For Ending Of Microsoft Case (WSJ)

TELEVISION

TV NETWORKS ARE SCRAMBLING TO DEAL WITH ERA OF NEW MEDIA
Issue: Broadcasting
Over the last few weeks network executives have gathered to select Fall
programs with an increased urgency. With a declining audience (down from 65%
to 55% in the last five years), networks are attempting to become more
versatile. Despite audience declines, advertisers are expected to set a
record of nearly $7 billion in advance purchase of commercials for the Fall.
With multiplying competition from cable and Internet, TV still attracts
audiences of tens of millions, making broadcasting more valuable to
advertisers. Internet companies are buying commercial time as well. In turn,
broadcasters are investing in Internet companies. While attempting to
reinvent themselves, networks are trying to protect their economic base.
Strategies to this end include buying up programming and repurposing shows
on digital channels and cable. Video streaming is also being discussed.
Networks are expected to sell products related to their shows as wells as
lobbying regulators to own more stations. Federal regulation limits a
network from owning stations that reach more than 35% of the country. Robert
Iger, Chairman of ABC Group, says that with all the push to merge
broadcasting and the Internet, at the core they are still all about "show
business." While Mr. Iger wonders about "the mouse-click generation," NBC
president Robert Wright notes that for the most part TV will remain passive:
"I just think that people still will want to watch and just relax."
[SOURCE: New York Times (A17), AUTHOR: Bill Carter]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/17tube.html)

NETWORK ADVANCED AD SALES ARE SEEN RISING
Issue: TV/Advertising
Although the buying season for network TV ads doesn't official begin until the
end of this week, negotiations are already underway. Wall Street is expecting
at least an 8% gain over last year's advanced prime-time ad sales. The
proliferation of viewing choices has resulted in advertisers paying more for
the few shows that still reach large audiences. It is the economy's general
health, however, that is most responsible for predicted increase in ad TV
revenue.
[SOURCE: Wall Street Journal (B11), AUTHOR: Sally Beatty and Kyle Pope]
(http://wsj.com/)

TV VIOLENCE
Issue: Television Content
Full Commerce Committee hearing scheduled for Tuesday, May 18, at 9:30 a.m.
in room 253 of the Russell Senate Office Building. Members will discuss
legislation requiring the Federal Communications Commission to create a
time period when children are protected from violent programming. Senator
Fritz Hollings (D-SC), Ranking Democrat on the Committee, introduced S.876
on April 26.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-59.htm)

SPEECH: NATIONAL ASSOCIATION OF BROADCASTERS
Issue: Convergence/Jobs
Speech by Larry Irving to the National Association of Broadcasters
Convention, Las Vegas (NV), April 1999: Your conference also represents
another type of "convergence" - a union of unions. And this union of
interests is becoming increasingly important in today's broadcasting world.
Industries are going through radical changes: they are merging, adopting new
affiliates, and venturing into new media outlets. Employees may be
significantly affected by these changes, and they will be best represented
by a coalition of unions that speaks with one voice....So what are the
central issues that should concern unions in this era of media convergence?
To begin with, we are in the midst of a heated controversy regarding the
existing broadcast ownership rules -- an issue that may directly impact
companies and employees.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/speeches/nab42099.htm)

INTERNET

CHILDREN'S INTERNET PROTECTION
Issue: Internet Content/Filtering
Full Committee hearing scheduled for Thursday, May 20, at 9:30 a.m. in room
253 of the Russell Senate Office Building. Senator McCain (R-AZ) will
preside. Members will discuss the Children's Internet Protection Act, S.97,
introduced by Senators McCain and Hollings (D-SC) on January 19. The bill
requires schools and libraries that use universal service funds also use
those funds to purchase filtering or blocking technology.
[SOURCE: US Senate]
(http://www.senate.gov/~commerce/press/106-59.htm)

THE WEB'S IDENTITY CRISIS
Issue: E-Commerce
A federal appeals court in California has ruled that Web sites cannot use
trademarked names which don't belong to them in their metatags. Most Web
documents contain an invisible description of the site's contents, called a
"metatag." These metags are then used by search engines to categorize sites.
The California case involved a video chain that had included the name of a
trademarked entertainment site in its metatag. The judges in the case compared
metatags to highway exit signs. Concluding that consumers could be mislead by
inaccurate labeling.
[SOURCE: Wall Street Journal (A26), AUTHOR: Steven Johnson]
(http://wsj.com/)

INTEREST IN ONLINE BILL PAYMENT GROWS
Issue: Electronic Commerce
Online consumer billing seems to be catching on with some of the nation's
biggest billers adopting online systems. The idea is to cut the ~$3/bill
costs of printing and mailing bills as well as reducing paperwork for banks.
Bills could be emailed or aggregated at a Web site that consumers know to
check periodically. Among the companies competing to bring more billers
online are the Checkfree Corporation, the industry leader so far, and
Transpoint, a joint venture of Microsoft, First Data and Citigroup. "This
technology is unbelievably sticky," Robert Sterling, a Jupiter
Communications analyst, said, using industry jargon for features that keep
viewers coming back to a particular site. Customers who pay bills on one
site will not only return out of habit, Sterling said, but will be reluctant
to learn another site's system. With tens of billions of bills mailed in the
United States each year, at least millions of repeat site visits could be at
stake. "This is potentially a King Midas technology," Mr. Sterling said.
[SOURCE: CyberTimes, AUTHOR: Bob Tedeschi (tedeschi( at )nytimes.com)]
(http://www.nytimes.com/library/tech/99/05/cyber/commerce/17commerce.html)

NET SITE SEEKS TO BUILD BRIDGES
Issue: Internet/International
Sina.com, a Sunnyvale (CA)-based Internet company, claims to be the largest
Chinese-language gateway to the World Wide Web. With more than 700,000
registered uses, Sina.com reports that 60% of its traffic emanates from
Asia, while the remaining users are from other parts of the world -- mostly
North American. The Club Yaun dating service is one of the most popular
destinations for US visitors. Offered in both Chinese and English, the news
is the biggest draw for most users. The site fulfills expatriates' hunger
for news about their home land. "The American reports are good," says
Taiwanese student Kevin Lin, "but they have a different point of view."
[SOURCE: San Jose Mercury News, AUTHOR: K.Oanh Ha]
(http://www.mercurycenter.com/svtech/news/indepth/docs/sina051799.htm)

COMPUTER COMPANIES CATER TO ELDERLY
Issue: Internet/Elderly
Only one in every four people over the age of 60 own a computer. But several
high-tech companies are eager to change that statistic. Microsoft, Intel and
America Online are using instructional videos, training seminars and targeted
Web sites to market computers and the Internet to older Americans. People over
50 are already the second-fastest-growing group of Internet users, and companies
like Microsoft are working to boost that trend. The software company has
recently issued guidelines on how to make Web sites more accessible and
user-friendly for seniors. "We see it as a very important market," said Greg
Lund of Gateway. "These are people who are not only not scared of technology,
they're willing to experiment with it."
[SOURCE: San Jose Mercury News, AUTHOR: John Hughes (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/449208l.htm)

SEARCH ENGINE PROVIDES QUICKER RESPONSE, ADS
Issue: Advertising
Internet searchers of real audio and video at http://real.snap.com will soon be
using a faster search engine and be exposed to advertising while waiting to
download entertainment. Real Networks, a multimedia software maker, and
Snap.com, an Internet portal site, have made a deal to equip the site with
faster searching capabilities and Real Networks's Real Guide directory service
that offers links to real audio and video programming sites. In order to use
the new services, users must download the free software provided by Real
Networks' Real Player G2. Once users attempt a search, advertising will appear.
The companies say that a new deal signed between Snap.com, NBC Internet (which
owns Snap.com together with CNET) and Xoom.com, a direct marketing company, is
unrelated. In the future, the companies plan to offer a multimedia search site
for users with high-access capabilities, http://speed.snap.com.
[SOURCE: The New York Times (C10), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/17snap.html)

FEDERAL WEB SITES JOINED BY GOV.SEARCH
Issue: Access to Government Info
The US Government is launching a new fee-based search engine today, Gov.search,
to be marketed to federal agencies and companies in federally regulated
industries. The Department of National Technical Information Service (NTIS)
hopes to improve its search engine at the FedWorld Web site and offer "a
broader, deeper and more precise way" to jointly search Web sites and
Government research archives. "We've done some testing with researchers in
corporate libraries and Government agencies, and they like the one-stop
shopping," said Susan Stearns, director of business development for Northern
Light, a privately held search engine company that developed Gov.search with
the NTIS. Gov.search focuses more on technical and scientific information than
other government free search services including (thomas.loc.gov). Fees for
using the service range from $15 -$30 -- extra for using specific documents on
the site.
[SOURCE: Washington Post (F6), AUTHOR: Leslie Walker]
(http://search.washingtonpost.com/wp-srv/WPlate/1999-05/17/100l-051799-id...)

A PUBLIC DISCUSSION REGARDING THE MANAGEMENT AND ADMINISTRATION OF
.US DOMAIN SPACE
Issue: Internet
The National Telecommunications and Information Administration (NTIA)
announced that it has
established an electronic mailing list for a public discussion regarding the
management and administration of .us domain space. All parties interested in
the discussion of .us domain space issues are invited and encouraged to
participate. In an effort to provide the public an open forum to freely
discuss the broad range of issues regarding the .us domain space, NTIA will
not actively moderate the mailing list. NTIA requests that participants keep
discussions focused on issues related to the future management and
administration of the .us domain space. Digest archives of mailing list
discussions may be posted periodically on the NTIA web site. Instructions
for subscriptions is available at
(http://www.ntia.doc.gov/ntiahome/domainname/usrfc/dotuslistfedreg51099.htm)
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/press/usdoma51499.htm)

TELEPHONY/MERGERS

SBC AND AMERITECH: LET THEM PLAY
Issue: Mergers
(Editorial) The Tribune agrees with Illinois Commerce Commission Chairman
Richard Mathias who has called the record "extremely vague" on how
residential and small business customers will fare if the SBC-Ameritech
merger is approved. But killing the deal, the editorial staff writes, will
not "move the ball closer to the goal of true competition in the local phone
market." The answer is already apparent -- AT&T will offer the needed
competition through its acquisitions of cable providers TCI and MediaOne.
Scope and scale are necessary for the all out competition envisioned by the
Telecommunications Act of 1996. "Yes, the ICC -- and the FCC -- should set
conditions on this merger and they should be tough enough to make sure that
Illinois consumers benefit from the coming competition. But taking these
companies out of the game just when it's getting interesting doesn't serve
the public interest." [Sure, the risk is for residential and small business
customers -- but who cares about them, anyway?]
[SOURCE: Chicago Tribune (Sec 1, p10), AUTHOR: Tribune Editorial Staff]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9905170061,00.html)

US WEST AND GLOBAL CROSSINGS TO ANNOUNCE PLANS TO MERGE
Issue: Mergers
Although official declarations have not been made, US West and Global
Crossing, an international telecom upstart, are expected today to announce
plans to merge. The companies have set the broad outlines of their deal,
according to sources close to the negotiations. US West (based in Colorado)
plans to buy 9.5% of Global Crossing (based in Bermuda) and an ownership
share of Global Crossing's long-distance company, Frontier Corps (based in
NY) for $2.4 billion. The companies will be run by the CEO's of both
companies, former AT&T president Robert Annunziata of Global Crossing and US
West chief executive Solomon Trujillo.
[SOURCE: Washington Post (A4), AUTHOR: John Schwartz]
(http://search.washingtonpost.com/wp-srv/WPlate/1999-05/17/076l-051799-id...)

ACCESS TO BUILDINGS AND FACILITIES BY TELECOMMUNICATIONS PROVIDERS
Issue: Competition
Links to testimony at May 13 hearing.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/Witnesses?OpenView&StartK
ey=8343CFE30C7933D585256767006A2E7A)

START-UP LEADS PHONE CAUSE IN BATTLE FOR INTERNET ACCESS
Issue: Broadband
Northpoint -- a Bay Area start-up company that builds high-speed data networks
from normal phone lines -- hopes to operate and maintain these lines, freeing
up Internet Service Providers (ISP) to focus on finding customers, operating
e-mail and World Wide Web servers, and providing customer service. This may be
an attractive proposition to ISP's who have been squeezed out by giants like
AOL. The technology Northpoint is using is a digital subscriber line, or DSL.
If embraced, the technology could replace dial-up modem access offered by ISPs.
Northpoint has brokered deals with Baby Bells to install their network
equipment inside Bell companies' central offices. By controlling the network,
Northpoint is in a good position to profit.
[SOURCE: New York Times (C1), AUTHOR: Seth Schiesel]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/17spee.html)

SPEECH: COMMUNICATIONS LAW IN THE NEXT MILLENNIUM CONFERENCE
Issue: Competition/Bandwidth
Speech by Larry Irving at the Communications Law in the Next Millennium
Conference, American University, April 12, 1999. With an eye on increased
competition in local markets, Mr. Irving believes that the future of
telecommunications will be "All About Bandwidth." He addresses the effects
of consolidation, the need for more bandwidth, and spurring the deployment
of broadband. He concludes: Providing data services to rural areas,
low-income areas, and residents young and old will remain a challenge
through the next millennium. But it is a worthwhile challenge. When we think
about the 1996 Telecommunications Act, we must remember that its ultimate
goals are to make telecommunications services cheaper and more broadly
available, and to extend new advanced services to as many Americans as
possible. As President Clinton said, "The new promise of the global economy,
the information age, unimagined new work, life-enhancing technology: all
these are ours to seize. That is our honor and our challenge. We must be
shapers of events, not observers, for if we do not act, the moment will
pass and we will lose the best possibilities of our future."
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/speeches/bandwidth41299.htm)

FCC REFORM

FEDERAL COMMUNICATIONS COMMISSION REFORM: THE STATES' PERSPECTIVE
Issue: FCC Reform
Thursday, May 20, 1999 at 2:00 p.m. in 2322 Rayburn House Office Building.
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on Federal Communications Commission Reform: The States' Perspective.
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/schedule.htm)

NEWSPAPERS

EFFORTS TO REINVENT THE LOS ANGELES TIMES FALTER
Issue: Newspapers
Many fault the business decisions of Mark Willes, Chairman and chief
executive of Times
Mirror who became publisher of the Los Angeles Times 18 months ago, for
contributing to the newspaper's failings. As two-thirds of senior executives
have left, Willes' policy of appointing a general manager to each newspaper
section to facilitate business and editorial cooperation is not working.
Circulation was flat and declined in April. Profits for 1998 dropped by 15%
to $165 million. Reporters have complained of "ad hoc" and "helter-skelter"
management. "Both the city of Los Angeles and the newspaper had been
undergoing a slow-motion nervous breakdown," said Steve Wassermank the book
editor of The Times. The demographics of The Times readership has been
affected by the shattering of the defense economy, decline in retail sales
and the 1992 riots. LA has lost its sense of self, he said. Other moves
Willes has made include adding 11 new business journalists, cutting regional
reporting staff and adding a dozen "Our Times" papers which provide local
communities information such as local crime reports and high school sports
scores. Other
changes include a new Health section and a separate Hispanic news desk with
123 journalists. However, Willes notes, "If we were to find out how many
additional readers we've had because of this very expensive effort with the
Latino desk, I could probably count it on these fingers."
[SOURCE: New York Times (C1), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/yr/mo/day/news/financial/la-times-media.html)

ANTITRUST

JUDGE'S QUERY SPAWNS SCENARIOS FOR ENDING OF MICROSOFT CASE
Issue: Antitrust
Before adjourning for "spring break," the judge in the Microsoft antitrust
trial poised a provocative question to both sides: Why not just let
personal-computer makers and consumers pick the software they want on new
machines? This query may provide insight into how Judge Thomas Penfield
Jackson might envision a resolution to this case. The judge's question
suggests that he is not convinced of Microsoft's argument that their
browser is inseparable from Windows. The query, however, does not indicate
that the Court is ready to take extreme action, such as breaking up the
company. At this moment, a settlement might be the most painless ending in
sight. For an agreement to occur, Microsoft would have to assure the
government that in reference to Judge Penfield's question -- PC makers would
be given greater choice in the software and Internet access options for
computers they sell.
[SOURCE: Wall Street Journal (A1), AUTHOR: John Wilke]
(http://wsj.com/)

--------------------------------------------------------------
CPP welcomes Debbie Becht to the Headlines team. Debbie is joining us this
summer from Georgetown University.

Communications-related Headlines for 5/14/99

TELEVISION
NBC Edits 'Nuclear Waste' From Mini-Series, and
Outside Pressure Is Charged (NYT)
FCC Adapts Rules for Set-Top Cable Boxes (WP)

TELEPHONY
ICC Leery of Ameritech Merger (ChiTrib)
FCC Adopts Wireless 911 Rules (FCC)
Access to Buildings and Facilities by Telecommunications
Providers (House)
Proceeding to Adopt Rules for New Commercial Services (FCC)

NEW SPECTRUM USES
Roundtable Discussion of Low Power FM (FCC)

FCC REFORM
Federal Communications Commission Reform:
The States' Perspective (House)

INTERNATIONAL
Yugoslavia May Lose Some Net Access (SJ Merc)
European Digital-TV Services to Expand (WSJ)
Performance of Intergovernmental Satellite Organizations on
International Anti-Bribery Requirements (NTIA)

EMPLOYMENT
Tech visas to hit 12-month limit 4 months early (SJ Merc)
Email Abuse Leads To Firings At Investment Firm (CyberTimes)
Nortel to Cut 1,000 Jobs (WP)

TELEVISION

NBC EDITS 'NUCLEAR WASTE' FROM MINI-SERIES, AND
OUTSIDE PRESSURE IS CHARGED
Issue: Television Content/Censorship
The NBC mini-series "Atomic Train" was supposed to be about the deeds of
here Rob Lowe who battles a runaway train loaded with atomic waste and a
nuclear bomb (just to make it really exciting). The network is deleting all
reference in the show to nuclear waste, however, and dubbing in "hazardous
waste." Sen Richard Bryan (D-NV) claims that the network is responding to
pressure from the nuclear power industry since NBC is owned by General
Electric which also has a nuclear energy unit. NBC is claiming the changes
are being made so as to not mislead the public -- the network is going
through the trouble and cost, estimated at tens of thousands of dollars, it
says, because the program had been promoted as real-to-life: "If our own
promotional positioning led people to perceive it as nonfiction," said Dr
Rosalyn Weinman, NBC's executive vice president for content policy, "then I
think our level of responsibility includes not only putting a disclaimer out
but also to taking that next step. There's a lot of science here, and a lot
of regulatory and transportation issues, and we didn't have the time to vet
it properly. The conservative broadcasterly thing to do was to make those
changes."
[SOURCE: New York Times (A19), AUTHOR: Lawrie Mifflin]
(http://www.nytimes.com/yr/mo/day/news/national/nbc-editorial.html)
See also:
NUCLEAR INDUSTRY ADS CALLED POTENTIALLY DECEPTIVE
[SOURCE: New York Times (C2), AUTHOR: Matthew Wald]
(http://www.nytimes.com/yr/mo/day/news/financial/nuke-power-ads.html)

FCC ADAPTS RULES FOR SET-TOP CABLE BOXES
Issue: Cable
Aware that companies are hurrying to develop new services for distribution
through the residential cable connection, the Federal Communications
Commission adopted a compromise on cable boxes Thursday to speed the
introduction of multi-functional set-top boxes. The FCC agreed to exempt
old-fashioned analog cable boxes from FCC rules adopted last year requiring
a separate security component. The new digital boxes and analog/digital
hybrids will be required to have the security device. The rules are based on
a new generation of cable services that may include Internet service,
on-demand movies, and interactive television, in addition to far more TV
channels. The cable boxes will be sold to consumers rather than rented to
them by cable companies. Separately, the FCC on Thursday adopted a rule
requiring cell phones to include circuitry that will connect emergency calls
to 9-1-1 operators more effectively. The agency also asked for comments
about how the spectrum currently used by TV channels 60-62 and 65-67 should
be used in the future.
[SOURCE: Washington Post (Online), AUTHOR: Reuters]
(http://www.washingtonpost.com/wp-srv/business/daily/may99/cable13.htm)
See also:
NAVIGATION DEVICES
Issue: Cable
From News Release: In order to improve consumer choice and foster
competition, the FCC has adopted an order revising its rules regarding the
commercial availability of navigation devices (e.g cable television set-top
boxes). The Order on Reconsideration affirms and refines rules adopted in
1998 to allow for consumer purchase and ownership of navigation devices.
This order furthers the goal of providing competition in the
telecommunications marketplace by creating a market for consumers to own
equipment used to access video programming and other services in their
homes. The Order modifies the FCC's separation requirement with regard to
analog-only devices. The Order finds that deferring application of the rules
to analog-only devices at this time will further allow the industries to
focus on the development of digital equipment and expedite achievement of
Section 629's goal of commercial availability. Key elements of the order
include: Analog Equipment, Integrated Boxes, Devices in Inventory, CableLabs
Standards Process, Application of Rules to various MVPD technologies,
Functions of Equipment Performing Conditional Access, and Portability. More
detail is available at the URL below. News Media contact: Morgan Broman at
(202) 418-2358. Cable Services Bureau contacts: Deborah Klein, Thomas Horan
at (202) 418-7200. TTY: (202) 418-7172
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Cable/News_Releases/1999/nrcb9009.html)

TELEPHONY

ICC LEERY OF AMERITECH MERGER
Issue: Mergers
The $60 billion merger of Ameritech and SBC my be in doubt after the first
public deliberations of the commissioners of the Illinois Commerce
Commission. "I find the record to be appallingly vague on many issues," ICC
Chairman Richard Mathias said in the first indication of his
opinion of the deal. Chairman Mathias has indicated before that SBC and
Ameritech must prove the merger passes legal muster by providing a
preponderance of evidence -- his comments indicate that the companies have
not done that. ICC hearing examiners rejected the findings of ICC staff who
suggested major conditions be placed on the combined company or outright
rejection of the deal. Chairman Mathias said any conditions should be
spelled out clearly "but if they're not clear, then businessmen will do what
they have traditionally done in any industry and nibble around the edges."
Commissioner Terry Harvill said the ICC needs assurances "that residential
and small business customers will not be left be left behind" by the
combined companies "national-local strategy" to enter the local telephone
markets in 30 cities outside the 13 states of SBC-Ameritech. Commissioner
Ruth Kretschmer said, "I don't want to see funds generated in Illinois used
in other regions." Commissioner Richard Kolhauser appears to be the most
favorable to the deal: "All the people who talk about competition
theoretically are in the end turning out to be regulators at heart," he
said, who did agree with the others about the vagueness of the formal
record. "The record is weak," he said. "Ninety percent of it is speculation
-- from all parties." A decision by the ICC is expected in June; the FCC is
also reviewing the merger and is expected to render a decision in July.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,ART-28515,00.html)

FCC ADOPTS WIRELESS 911 RULES
Issue: Wireless
From the News Release: The Federal Communications Commission adopted rules
that will improve the ability of cellular phone users to complete wireless
911 calls. The action will improve the security and safety of analog
cellular users, especially in rural and suburban areas, by approving three
mechanisms any of which will result in more wireless 911 calls being
completed than occurs today. As part of its efforts to promote public
safety, the Commission adopted the Enhanced 911 (E911) First Report and
Order in 1996, which among other things required that cellular carriers
complete all 911 calls, not just those of their subscribers. At the same
time, the Commission adopted a Second Notice of Proposed Rulemaking (NPRM)
to develop additional means of improving E911 system performance to serve
public safety needs. One issue in the Second NPRM concerned proposals to
improve the transmission of 911 calls, particularly from locations where the
wireless caller's preferred carrier has a "blank spot" - an area where the
system's radio signal is very weak or non-existent. A Second Report and
Order (Order) addresses this particular issue. Additional detail available
at the URL below. News Media contact: Meribeth McCarrick at 202-418-0654,
via e-mail mmccarri( at )fcc.gov or TTY at (202) 418-7233. Wireless
Telecommunications Bureau contact: Dan Grosh (Policy Division) at 418-1310,
via e-mail: dgrosh( at )fcc.gov, or TTY at (202) 418-7233. Report No. WT 99-13 --
Docket No. CC Docket No. 94-102
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9016.html)

ACCESS TO BUILDINGS AND FACILITIES BY TELECOMMUNICATIONS PROVIDERS
Issue: Competition
Chairman Biley's statement at oversight hearing: Competition brings
consumers long-term benefits. Competition is the best mechanism to ensure
low rates. Competition also brings better service and more choice....True:
we'd all like to see more competition. But the solution there is not to turn
our backs on the progress we've made. Instead, we should focus on ways to
remove the remaining obstacles to competition. Which brings us to the
subject of building access, the so-called 'last hundred feet.' This is an
important component to promoting competition in local telephone markets.
Consumers who live in apartment or commercial buildings are no less entitled
to the benefits of competition. I am therefore concerned when I hear charges
that building owners and managers go a long way to deny competitors access
to their properties. I know how difficult it must be to accommodate new
folks seeking access to office buildings and apartments. However, some
building owners and managers are mistakenly restricting access. I recognize
this is not true of all building owners. Some owners and managers support
competition in retail sales of electricity, which pleases me. Many owners
have done the right thing for their tenants and opened their door to
competition. So we need to find an answer to the following question: how do
we take care of the 'bad actors?' The FCC has done some good work in this
area. But much work remains, and the FCC ought to be using its power to help
us find some solutions. Let me also say that I strongly support
collaborative solutions to this problem. I applaud those building owners and
telecommunications companies that have tried to fashion a compromise, and
urge you to continue your good work. But those who choose to dig in their
heels should know that we will continue to monitor this situation. I am
committed to opening the local loop, and building access is a key component
to that effort.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/a8421c4f5171dd23852567370
07cd80f/0324b779580271698525677000522fbd?OpenDocument)

NEW SPECTRUM USES

ROUNDTABLE DISCUSSION OF LOW POWER FM
Issue: Radio
From FCC News Release: William E. Kennard, chairman of the Federal
Communications Commission (FCC), participated today in a roundtable
discussion on low power radio with representatives of many religious
organizations. The discussion took place at First Congregational Church in
Washington, DC, and was moderated by Randy Naylor of the National Council of
Churches. Chairman Kennard said his job as FCC chairman was to ensure that
the public spectrum is used to benefit all Americans and this goal will be
served by a low power radio service that will give more Americans access to
stations that serve the needs of their local communities. The Commission has
proposed allowing FM stations to operate at low power levels to broadcast to
their local communities. Comments are due on this proposal by June 1. "As
I've traveled around the country," he said, "I've met dozens of people who
want to use the airwaves to speak to their communities -- churches,
community groups, elementary schools, colleges, and minority groups. In the
Commission's proposal for a low power radio service, these people see the
opportunity to have their voices carry through their communities. To have
their voices heard. And to bring together their communities through a shared
message broadcast to all -- whether a church service, a school concert or
assembly, or a speech by a local public official. " Also attending the
roundtable discussion were: Rev. Joan Brown Campbell, General Secretary,
National Council of Churches of Christ; Rev. Everett Parker, United Church
of Christ (UCC); Rev. John Mack, Sr. Pastor, First Congregational Church,
Washington, DC; Randy Naylor, National Council of Churches; Rev. Edward
Rivera, Cleveland, OH; Kathleen Golden, Producer, Mary Knoll World
Productions; Katherine Grincewich, Asst. General Counsel, U.S. Catholic
Conference; Rev. Anand Veeraraj, Princeton, NJ; Sally White-Dishton, Intern,
Westmoreland UCC, Washington, DC; Barbara Ferguson-Kamara, Asst. to Mayor,
Washington, DC; Dr. James Mack, Howard Univ.; Kwami Osei Reed, UCC; Roberto
Gutierez, Oblates of Mary Immaculate, Austin TX; Andrew Schwartzmann, Media
Access Project. Chairman Kennard's statement available at
(http://www.fcc.gov/Speeches/Kennard/Statements/stwek928.html).
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/1999/nrmc9028.html)

PROCEEDING TO ADOPT RULES FOR NEW COMMERCIAL SERVICES
Issue: Spectrum
From News Release: The Commission began a proceeding to adopt service rules
to permit new services on spectrum bands formerly designated exclusively for
UHF television service. By previous Commission action, these spectrum bands
could potentially be used for a variety of wireless or broadcasting
services, and today's proceeding will ultimately establish rules by which
the Commission will license permitted services. The availability of this
spectrum is the result of the Commission's efforts to free up channels 60-69
for new users as part of the transition to digital television (DTV). The
746-764 MHz and 776-794 MHz bands have been used by television stations on
channels 60-62 and 65-67. Congress directed, in the Balanced Budget Act of
1997, that this 36 megahertz of spectrum be reallocated and auctioned for
commercial purposes, and specified that the auction take place after January
1, 2001. (Congress also directed in the Balanced Budget Act that 24
megahertz of spectrum be reallocated for public safety services, and the
Commission has separate proceedings underway to implement those services.)
After the auction and licensing of successful bidders for these commercial
bands, existing full power UHF licensees will be permitted to continue
operations protected from interference until the deadline for conversion to
DTV. News Media contact: Meribeth McCarrick at 202-418-0654
(mmccarri( at )fcc.gov) or TTY at (202) 418-7233. Wireless Telecommunications
Bureau contacts: Stan Wiggins (swiggins( at )fcc.gov) or Ed Jacobs
(ejacobs( at )fcc.gov) at (202) 418-1310 or TTY at (202) 418-7233.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9017.html)

FCC REFORM

FEDERAL COMMUNICATIONS COMMISSION REFORM: THE STATES' PERSPECTIVE
Issue: FCC/Budget Issues
Thursday, May 20, 1999, 2:00 p.m. in 2322 Rayburn House Office Building.
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on FCC Reform
[SOURCE: House of Representatives]
(http://www.house.gov/commerce/schedule.htm)

INTERNATIONAL

YUGOSLAVIA MAY LOSE SOME NET ACCESS
Issue: Internet/Access
Portions of Yugoslavia may soon be without access to the Internet. Loral
Space and Communications, an American satellite company, says that it might
be ordered to cut transmission into Yugoslavia as part of the US's trade
embargo on that country. The Government order that banned the sale of "any
goods, software, technology or services," however, was ambiguous as to the
treatment of communications services. David Leavy, spokesman for the
National Security Council, said that "generally informational material is
exempt" but that electronic commerce would likely fall under the ban.
"We'll need to inquire further about the appropriate applications of the
law," he said. Jim Dempsey of the Center for Democracy and Technology
emphasized the importance of the Internet to democracy: "The Internet
remains at this point one of the major sources inside Yugoslavia for
objective news reporting about the war." Mr Dempsey also noted that the it
is the "main sources for any remaining democratic voices within Yugoslavia
to communicate with the outside world."
[SOURCE: San Jose Mercury News, AUTHOR: Ted Bridis (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/442241l.htm)

EUROPEAN DIGITAL-TV SERVICES TO EXPAND
Issue: DTV
Interactive services are developing at a faster pace in Britain and Europe
than in the US, says Georges Nahon, director of Microsoft Europe's Internet
unit -- which is why Microsoft has plans to continue investing in European
cable companies, with hopes of becoming a major provider of complex software
for digital TV services. Microsoft has already invested in Britain's NTL
and plans to invest in Telewest Communications PLC, as well as five other
major European cable companies. European consumers, like those in the US,
continue to remain wary of the new technological services that transmit
blurry Web pages to TV screens and currently offer flawed email services.
Microsoft executives, however, "insist that their investments in Britain
will bear fruit" given the country's sophisticated fiber-optic
technology and the success of satellite TV and the Internet in the UK.
[SOURCE: Wall Street Journal (B4), AUTHOR: Gautam Naik and Matthew Rose]
(http://wsj.com)

PERFORMANCE OF INTERGOVERNMENTAL SATELLITE ORGANIZATIONS ON
INTERNATIONAL ANTI-BRIBERY REQUIREMENTS
Issue: Satellite
Comments received in the Commerce Department's proceeding on progress made
by Intergovernmental Satellite Organizations' (ISOS) signatories in
providing full and open competition in their communications satellite
markets. (Comment period closed May 12, 1999)
[SOURCE: NTIA]
(http://www.ntia.doc.gov/ntiahome/occ/index.html)

EMPLOYMENT

TECH VISAS TO HIT 12-MONTH LIMIT 4 MONTHS EARLY
Issue: Employment
While Congress doubled the number of visas available for foreign workers
with high-tech skills just this year, the Immigration and Naturalization
Service says it has already used up its annual allotment of the H-1B visas.
The visa limit, which was temporally raised to permit the entrance of
115,000 workers annually, has been reached four months earlier than
expected. News of the visa shortage stirred arguments from both sides of the
this contentious issue. "This proves that there is a real shortage of
high-tech workers," said Sen. Spencer Abraham (R-MI), who sponsored the
bill boosting the cap last year. "It shows the need for the legislation we
passed last year." Dan Stein, of Federation for American Immigration Reform
disagreed. "This has nothing to do with labor shortages. This has to do with
cheap labor and labor exploitation. All Abraham has done (with the law) is
corrupt the recruitment process in
software and information technology industries.''
[SOURCE: San Jose Mercury News, AUTHOR: Newhouse News Service]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/visas051499.htm)

EMAIL ABUSE LEADS TO FIRINGS AT INVESTMENT FIRM
Issue: Employment/Privacy
Edward Jones, a large investment firm in St Louis (MO), recently fired 18
employees, allowed one to resign, and warned 41 others for abusing the
company's email system. Employment lawyer Amy H. Kohn sees this as part of a
growing trend of employers monitoring company email. "There is heightened
awareness and a moving toward a closer examination of companies' approach to
email." Edward Jones employees are now required to sign a document agreeing to
"acceptable uses" of email before they are given an account. Edward Jones would
not disclose details of the incident, but said an employee complained of an
"inappropriate" email. A company spokeswoman said "the company took action to
make sure each of us is comfortable in our place of work." A related suit in a
Brooklyn federal district court was dismissed recently because a judge declared
that a single email is not enough to "create a hostile working environment."
As more employers are monitoring email, the American Civil Liberties Union
(ACLU) receives 6-7 complaints a week about "email snooping" on the job. One
woman complained that her boss printed an intimate message she sent to her
boyfriend and posted it on a bulletin board. ACLU legal director Jeremy
Gruber says there is little privacy protection under the law for employee
email and people should know that deleting a message does not guarantee it
is removed from the company's network. He also notes that many people are at
their jobs for more than 8 hours per day and it's reasonable that they
should conduct some personal business.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/05/cyber/cyberlaw/14law.html)

NORTEL TO CUT 1,000 JOBS
Issue: Employment
Selling plants and cutting 1,000 jobs, Nortel Networks is restructuring to
make Canada's largest telecommunications company more competitive. The
Thursday announcement will affect 4,000 employees. Nortel will contract out
all but its most complex printed circuit board assembly and estimates that
about 3,000 of its employees will move to work for the contractors. About
1,000 more jobs will be cut as part of its retrenchment program originally
announced in January. In Canada, Nortel is selling plants and repair centers
in Brockville and Mississauga, Ontario and northern Toronto and
electro-mechanical assembly operations in Calgary and the Montreal area.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/WAPO/19990513/V000491-051399-idx.html)

--------------------------------------------------------------
...and we're outta here. And Headliner Ted Tate is really outta
here...moving on to greener pastures after graduation. Many thanks to Ted
who has promised his new wife that he'll not give her any more summaries of
Washington Post stories. We'll officially welcome a new member to the
Headlines team on Monday.

Communications-related Headlines for 5/13/99

TELEVISION
Bosnian TV Station, Staff By Serbs, Run Afoul Of U.S., NATO (WSJ)
Speech: International Radio and Television Society Foundation (FCC)
Did the Nuclear Energy Lobby Derail 'Atomic Train'? (WP)

MERGERS
NetTrends: Big Guns Aim At Digital Media Market (SJ Merc)
McCian Charges Bias in Review of SBC of Merger Pact (WJS)
Lycos to Take on AOL (WP)
Microsoft in Talks With CWC (WP)
At Home-Road Runner Face Uncertainty (WSJ)

ART
Art Online: The Internet Mounts a Masterpiece (NYT)
There May Be Money in Internet Art After All (CyberTimes)

INTERNET
Net fraud targeted by SEC (SJ Merc)
Web Sites Increasingly Post Privacy Policies (WP)
Internet Study Shows Usage By U.S. Adults Jumped (SJ Merc)
Livewire: Putting Human Faces On Internet Stats (SJ Merc)

TELEVISION

BOSNIAN TV STATION, STAFF BY SERBS, RUN AFOUL OF U.S., NATO
Issue: Free Speech
The US is currently involved in two wars in the Balkans: a full scale air
war, and a war of the airwaves. Just as NATO tries to defeat Serbian ground
troupes, it is also battling with a powerful Yugoslavian propaganda machine.
British officers have recently threatened to close down a Bosnian TV station
controlled by Serbs, and a smaller Bosnian TV channel has already been shut
down by NATO. Western authorities claim that the stations' anti-NATO
messages threaten the delicate peace in Bosnia. There is concern, however,
that NATO attempts to assert editorial influence on foreign media fly in the
face of free democratic expression. The Republic of Srpska's state run
broadcaster, STR, which receives much of its funding from the West, is
closely monitored by the U.S. and its allies. The EU has even sent the
station a list of demands, including giving equal time to "respected
international broadcasters," and ceasing to using certain news from
Yugoslavia's state wire service. According to a former Radio Free Europe
Executive, SRT's "increasingly distorted and strident coverage is hardening
public opinion." In contrast, many locals feel that STR has been forced to
succumb to excessive Western control. Car dealer Duncan Novkovic says of the
STR: "If they don't follow [the West's] orders, they'll be off the air."
[SOURCE: Wall Street Journal (A1), AUTHOR: Daniel Peal Pearl]
(http://wsj.com/)

SPEECH: INTERNATIONAL RADIO AND TELEVISION SOCIETY FOUNDATION
Issue: Media & Society
Commissioner Ness' Award Acceptance Remarks at the International Radio and
Television Society Foundation in New York City. Commissioner Ness addresses
"the images of violence [that] have become the focus of nationwide attention
and debate." She suggests that sacrificing the First Amendment is not the
solution. "Rather, as parents, each of us must assume personal
responsibility in helping our children make choices about the programs and
movies they watch and the games they play. And program creators,
broadcasters, cable operators, and corporate leaders must assume personal
responsibility -- as members of a national community -- and take the
interests of that community to heart. If everyone involved in the
programming food chain were to ask: 'Is this a program that I would want my
children to watch? -- Would I give it my personal "seal of approval?' -- And
then acted based upon the answers to those questions, we likely would see
meaningful changes." [Also receiving awards were Charles Osgood, Katie
Couric and Les Moonves (President of CBS).
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Ness/spsn908.html)

DID THE NUCLEAR ENERGY LOBBY DERAIL 'ATOMIC TRAIN'?
Issue: Content/Television
The "nuclear waste" has been removed from the made-for-TV movie "Atomic
Train," but it lands today on the floor of the US Senate when Sen. Richard
Bryan (D-NV) delivers his condemnation of the way the removal was done.
Prior to the speech, Sen. Bryan said the NBC network and parent General
Electric did an "el foldo" under pressure from the Nuclear Energy Institute.
The movie was edited this week to change references of "nuclear waste" to
"hazardous material." Also, after promoting the movie as an "it could happen"
disaster flick, NBC announced it would have a disclaimer at the beginning of
the movie saying that the events depicted are "pure fiction." Bryan, who
opposes legislation that would allow nuclear waste to be deposited in
Nevada, believes that a corporate connection between GE and the nuclear
industry is to blame for the changes in the movie. He notes that the
changes came after NEI created a report detailing a "containment strategy"
for the movie. Bryan's complaints were echoed by a multitude of equally
outraged nuclear watchdog groups. An NEI spokesman dismisses their charge
and says that his organization had nothing to do with the changes in the
miniseries.
[SOURCE: Washington Post (C7), AUTHOR: Lisa de Maraes]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/13/010l-051399-idx.html)

MERGER

NETTRENDS: BIG GUNS AIM AT DIGITAL MEDIA MARKET
Issue: Mergers
Through a series of huge deals, the giants of the industry are racing to
create the communications networks of the future. Hundreds of billions of
dollars are being spent to develop services that will include merging the
Internet, cable television, and telephone services and increased use of
wireless. For consumers, not much has changed so far. John Wilcox of Cisco
Systems said that the Internet-based services "are probably going to arrive
more quickly than anybody thought." Companies, including AT&T, Microsoft,
and AOL, are making huge investments and acquisitions. Analysts predict a
frenzied pace of deal-making and building in the year ahead as players get
into position. The hope for consumers is that the new services will provide
convenience and low cost for services. Mark Cooper, of the Consumer
Federation of America, worries about fewer choices for consumers due to the
consolidation and services aimed at high-income people, making basic service
more expensive.
[SOURCE: San Jose Mercury News, AUTHOR: Dick Satran]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/438097l.htm)

MICROSOFT IN TALKS WITH CWC
Issue: Merger
Microsoft is in talks to invest as much as $4 billion for 30% of Cable and
Wireless Communications PLC. Microsoft hopes to convince the British
company to use its software in cable set-top boxes. For Cable and Wireless,
the talks come as the company is looking to dispose of some consumer
businesses in order to focus on providing high-speed services to businesses.
Some analysts say that a large CWC investment by Microsoft could spark a
merger of Britain's big three cable companies -- Telewest Communications
PLC, CWC, and NTL Inc. David Svendsen, chairman of Microsoft UK is eager to
deploy his company software in the developing high-speed market. Svendsen
said, "Computers go beyond the desktops that we know today; they will be in
mobile phones and televisions."
[SOURCE: Washington Post (E2), AUTHOR: Bloomberg News]
(http://www.washingtonpost.com/)

LYCOS TO TAKE ON AOL
Issue: Mergers
Lycos and USA Networks called off their planned merger on Wednesday, but
Lycos has emerged from the failure as a stronger company and in a better
position to negotiate with other suitors or acquisition targets. The first
of those deals is expected to be announced on Monday. The new deal involves
working with a software company to move it one step closer to competing
directly with America Online. The partnership would give customers software
to enable them to access the Internet from desktop computers.
[SOURCE: Washington Post (Online), AUTHOR: Noelle Knox (Associated Press)]
(http://www.washingtonpost.com/wp-srv/WAPO/19990512/V000925-051299-idx.html)

MCCIAN CHARGES BIAS IN REVIEW OF SBC OF MERGER PACT
Issue: Merger
Senate Commerce Committee Chairman John McCain (R-AZ) has accused the
Federal Communications Commission of prejudice in its review of the planned
merger between SBC and Ameritech. Sen. McCain is concerned about comments
made by FCC staff member Thomas Krattenmaker, who said that deal, as
currently structured, "flunks the public interest test." In a letter to FCC
Chairman, William Kennard, Sen. McCain urged the Chairman to "do whatever is
necessary to remove the institutional unfairness and prejudice that has been
permitted to taint this proceeding." In response, a FCC spokesman said the
Chairman Kennard has "expressed his full confidence in the expertise and
integrity of the commission's staff."
[SOURCE: Wall Street Journal (A6), AUTHOR: Dow Jones Newswires]
(http://wsj.com/)

AT HOME -ROAD RUNNER FACE UNCERTAINTY
Issue: Mergers/Cable
Upon the AT&T's announcement of plans to purchase MediaOne, shares of At
Home, the high-speed cable modem service, soared due to speculation of an At
Home/RoadRunner merger. AT&T, which owns a controlling share of At Home,
will also gain 34% ownership of Roadrunner if their deal with MediaOne comes
to fruition. People close to the situation, however, have doubts on a future
RoadRunner/At Home deal, which could prove to only antagonize regulators.
"Talk about pushing more things together only raises more flags for
regulators," said cable analyst Tom Wolzien. He "wouldn't be surprised to
see the At Home-RoadRunner merger on the back burner until everything else
is resolved." There is growing concern that AT&T is positioning itself to
control the emerging broadband market. While At Home and RoadRunner are not
direct competitors, they do offer the same type of service, which might
provoke Washington to further scrutinize AT&T's acquisition of MediaOne.
[SOURCE: Wall Street Journal (B8), AUTHOR: Leslie Cauley and Rebecca
Blumenstine]
(http://wsj.com/)

ART

ART ONLINE: THE INTERNET MOUNTS A MASTERPIECE
Issue: Arts
The Grove Dictionary of Art, the most comprehensive art reference, is now
available online and is testing the thesis that the digital book's time has
come. Grove's Dictionaries (www.groveart.com) sells subscriptions to the
online dictionary which includes the text of the print version, additions
and updates and links to the artworks in the online collections of museums
and galleries around the world. Said one fine arts librarian, "We're
definitely going to get it," she said. "The minute the printed version was
printed, it was obsolete. Scholarship happens all the time; people are
finding out new things all the time. And with an online version, things can
be updated all the time." The print version costs $6,000-$8,800 while an
online subscription costs $1,500/yr for five concurrent users ($2,000 for
ten users).
[SOURCE: New York Times, AUTHOR: Judith Dobrzynski]
(http://www.nytimes.com/library/tech/99/05/circuits/articles/13grov.html)

THERE MAY BE MONEY IN INTERNET ART AFTER ALL
Issue: Art
Slovenian artist Teo Spiller has just sold a piece of Web art to a municipal
gallery for about $500. The sale of Spiller's work, "Megatronix," was openly
negotiated via the World Wide Web. "Megatronix" represents one of the first
items of Internet art to be sold to a museum of collector. Until now,
artists have not experienced much luck in selling digital art. Different
model for selling art online are still in the development stages. A new
nonprofit service, AMICO, scheduled to begin in this summer, might aid
digital artists in showing their work. Other ideas, such as services that
offer fee based downloads of digital art, being experimented with by a
variety of players. "If we think Net art as Art, then we should be able to
support it, said Steve Dietz, director of new-media initiatives at the
Walker Arts Center in Minneapolis.
[SOURCE: CyberTimes, AUTHOR: Mathew Mirapual]
(http://www.nytimes.com/library/tech/99/05/cyber/artsatlarge/13artsatlarg...)

INTERNET

NET FRAUD TARGETED BY SEC
Issue: Internet
The Securities and Exchange Commission took aim at Internet fraud this week,
filing 14 enforcement suits across the country. Twenty-six companies and
individuals were targeted in the suits, which seek to curb the use of the
Internet to dupe investors. Schemes in the suits included interests in gold
mines, computer software, prefabricated hospitals in Turkey, and a product
described as a new way of processing gold. Eight of the cases involved the
sale of so-called "prime bank" notes, a non-existent type of security.
[SOURCE: San Jose Mercury News, AUTHOR: Howard Mintz]
(http://www.mercurycenter.com/svtech/news/indepth/docs/sec051399.htm)
See also:
SEC TARGETS INTERNET FRAUD
[SOURCE: Washington Post (Online), AUTHOR: Marcy Gordon (Associated Press)]
(http://www.washingtonpost.com/wp-srv/WAPO/19990513/V000159-051399-idx.html)

WEB SITES INCREASINGLY POST PRIVACY POLICIES
Issue: Privacy
A new study indicates the leaders of electronic commerce got the message
when threatened by Congress and the White House with legislation requiring
privacy disclosure information and procedures. Georgetown University
conducted the study with money from 17 companies and using data from Media
Metrix, a company that monitors traffic on the Web. The study results
include the following findings:
*almost 2/3 of the 364 Web sites analyzed voluntarily post a notice of
their privacy policies or describe how they use personal information;
*more than nine out of ten of the Web's top 100 sites have some statement
or disclosure; and
* three-quarters of those give computer users some choice about how their
information is used.
However, only about 10% of the sites in the survey include all of the
elements of a privacy agreement by Federal Trade Commission and industry
officials.
[SOURCE: Washington Post (E1), AUTHOR: Robert O'Harrow Jr.]
(http://www.washingtonpost.com/wp-srv/business/daily/may99/privacy13.htm)
See also:
SURVEY FINDS WEB PRIVACY PRACTICES BETTER
[SOURCE: San Jose Mercury News, AUTHOR: Aaron Pressman (Reuters)]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/438088l.htm)
NEW PRIVACY STUDY SAYS MAJORITY OF SITES PROVIDE WARNINGS
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/13privacy.html)

INTERNET STUDY SHOWS USAGE BY U.S. ADULTS JUMPED
Issue: Internet
A survey, released Wednesday by Media Research Inc., showed that the number
of US adults with access to the Internet -- either at home or work --
climbed 16.3% to 83.7 million. The Cyber Stats report used data the was
collected between March 1998 and February 1999. Other findings: The number
of adults with access to the Internet represents 42.4% of the US adult
population. The total number of adults who used the Internet over the past
thirty days is 64.2 million. About 44.9 million accessed the Internet from
home, compared with 31.3 million from work. Men (51.4%) use the Internet
more than women (48.6%). More than 53 million adults reported having used an
online service.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/438095l.htm)

LIVEWIRE: PUTTING HUMAN FACES ON INTERNET STATS
Issue: Internet
A survey of US Internet users by Nielsen/Net Ratings
(http://www.netratings.com) says the number of Internet users is up to 40
million. "During any given week, the average Internet user logs on five
times, visits seven Web sites and spends a total of two hours and nine
minutes online," according to the report. The author of the article tried to
put a human face on the Internet statistics by looking at her family and at
neighbors. One of her conclusions: "If your mom's using something, it's a
good indication that whatever it is -- e-mail, the Web -- has attained
mass-media status."
[SOURCE: San Jose Mercury News, AUTHOR: Michelle V. Rafter]
(http://www.mercurycenter.com/svtech/news/breaking/internet/docs/438096l.htm)

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Communications-related Headlines for 5/12/99

EDTECH
Gore Tax Hike (WSJ)
Plugged In: Biz Schools Teach Managing In Net Age (SJ Merc)

MERGERS/ALLIANCES
Cox To Buy TCA Cable For $3.26 Billion (WSJ)
AOL Signs 4 Deals in Bid to Get TV Access (WP)

OWNERSHIP
In San Francisco, A Revival Of Newspaper Speculation (NYT)

INTERNET
Anti-NATO Hackers Sabotage 3 Web Sites (WP)
Internet Companies Prepare For Privacy Report Card (SJ Merc)
Case: Internet a Civil Rights Issue (WP)
For Dueling Lawyer, The Internet Is Unlikely Referee (WSJ)
Survey Indicates Increased Use of Filters (CyberTimes)

ADVERTISING
Falwell Lights Into Budweiser (WP)

MUSIC ONLINE
Sony, Following Universal, To Sell Digital Music Online (NTY)
Yahoo To Offer Net Radio (CyberTimes)
Grateful Dead Lets Fans Swap Concert Recordings Over Web (SJ Merc)

EDTECH

GORE TAX HIKE
Issue: EdTech
[Editorial] The E-rate, a program that provides schools and libraries with
access to the Internet, is little more than an indulgent "pet project" of
Vice President Gore, says the Wall Street Journal. Mr.Gore's allies and
contributors, such as those in Silicon Valley and at the National Education
Association, argue the authors, are the real ones who the reap rewards from
the tax on phone companies. The program, the Journal claims, may even
possibly be illegal, because taxes should originate with the House Ways and
Means Committee, and not with a federal agency such as the Federal
Communications Commission (FCC). Now, FCC chairman William Kennard has plans
to almost double the program's original budget. The increase will reportedly
result in an average charge of 40 cents a month to phone customers. The
Journal dismisses the FCC claim that these new costs will be offset by a
reduction of long distance access charges.
[SOURCE: Wall Street Journal (A22), AUTHOR: Wall Street Journal Staff]
(http://wsj.com/)

MERGERS/ALLIANCES

AOL SIGNS 4 DEALS IN BID TO GET TV ACCESS
Issue: Interactive TV
Anticipating using TVs for e-mail, Internet access, and other services in
homes without computers, America Online announced corporate alliances
yesterday with satellite television company Direct TV and three other
corporations. Hughes Network Systems and Philips Electronics will design set
top receivers, and Network Computer Inc. will provide the software for the
system. AOL anticipates TV viewers will be able to watch ordinary shows and
at the same time use AOL services. Yesterday's deals are step one in a
long-term strategy that the company calls "AOL Anywhere." One industry
analyst called it "the beginning of the next phase for AOL." The country's
largest online service will be competing with Microsoft's WebTV for Internet
service via
television. Recently AT&T is threatening to become its foremost rival with
its emphasis on providing Internet service through cable connections.
Subscribers to AOL TV could use the service with cable TV, broadcast TV or
the DirecTV satellite service. AOL would still come in through the phone
line; the set top boxes would convert its signals for display on TV.
[SOURCE: Washington Post (A1), AUTHOR: Shannon Henry]
(http://www.washingtonpost.com/wp-srv/business/daily/may99/aol12.htm)
See also:
AOL DEAL ENVISIONS WEB SURFING VIA SATELLITE
[SOURCE: Wall Street Journal (B1), AUTHOR: Thomas Weber and Andy Pasztor]
(http://wsj.com/)

COX TO BUY TCA CABLE FOR $3.26 BILLION
Issue: Merger/Cable
Indicative of the recent wave of consolidations sweeping the cable industry,
Cox Communications is expected to announce their plans to acquire TCA cable
for $3.26 billion, in addition to the assumption of $736 million in debt.
The deal would expand Cox's reach into smaller markets, where few large
cable systems have shown interest. Cox, one of the first cable companies to
prepare its systems for two way digital services, was also attracted to TCA
because of its upgraded systems. Until now, Cox has stayed away from much of
the merger hype -- attempting to focus on getting better, not bigger.
[SOURCE: Wall Street Journal (A3), AUTHOR: Leslie Cauley]
(http://wsj.com/)

OWNERSHIP

IN SAN FRANSICO, A REVIVAL OF NEWSPAPER SPECULATION
Issue: Newspapers/Ownership
The family that owns Chronicle Publishing in San Francisco has called on
investment bankers to evaluate the company's assets. Observers say this move is
an indicator that the company is preparing to sell The San Francisco
Chronicle, the country's 11th largest newspaper, and NBC affiliate KRON-TV.
Since 1965, when The San Francisco Chronicle and its afternoon rival, The
San Francisco Examiner entered a joint operating agreement, the two papers
have been losing suburban readership. A likely buyer is the owner of The
Examiner -- Hearst. The two papers run joint business offices but run
separate, highly competitive newsrooms. Anthony Ridder, chairman and chief
executive of Knight Ridder, whose San Jose Mercury News competes with The
Chronicle, says a buyer would find Chronicle Publishing "very attractive
properties." The assets are valued at over $1 billion. It is not clear if
the buyer would be able to purchase both KRON and The Chronicle. Chronicle
Publishing has a FCC granted waiver, enabling the company to own a major
newspaper and TV station in the same market. A new owner, however, may not
receive the same waiver.
[SOURCE: New York Times (C6), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/yr/mo/day/news/financial/chronicle-publishing.html)

SURVEY INDICATES INCREASED USE OF FILTERS
Issue: Internet/Content
According to two recent studies, the use of filters to block objectionable
Internet content is increasing. Quality Education Data, a Denver-based
education market research company, found that 58% of 403 public school
teachers surveyed said Internet access was filtered at their school. That is
an increase from the 38% reported last year. A survey of parents, by the
Annenberg Public Policy Center, found almost a third of online American
households with children use filting software. The study also found that
parents have "mixed feelings" about the Internet. While 80% said their kids
use the Internet for help with homework, 77% said they feared kids would
give out personal information, and 60% said that too much time online would
lead their kids to become more isolated. In addition, 60% disagreed with a
statement that the Internet was safe for children. Makers of Internet
filters, such as Cyber Patrol and Net Nanny, report a huge increase in sales
since the shootings at Littleton, CO. Parry Aftab, executive director of
Cyberangels, an online safety group, says the daily inquiries about
filtering have jumped from 2 per day to 50. Critics of filters are not so
positive about their increased use. Jamieson McKenzie, editor of From Now
On, an online journal on education technology, sees theincreased use of
filters in schools as misguided. Jonathan Wallace, an Internet lawyer and
founding member of The Censorware Project,says filters are
"placebos" and often block access to legitimate material.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/05/cyber/education/12education.html)

ANTI-NATO HACKERS SABOTAGE 3 WEB SITES
Issue: Internet
Computer hackers, protesting NATO's bombing of the Chinese embassy in
Belgrade late Sunday, inserted messages into Web pages operated by the
Energy Department (DOE), the Interior Department (DOI), and the National
Park Service. An Interior spokesman said the Interior Department hacker "was
traced back to China by DOI computer experts." The message on the DOE site
included phrases like "Protest U.S.A.'s Nazi action! Protest NATO's brutal
action!" DOE officials said electronic firewalls protected other parts of
the departmental computer systems from attack. The White House Web site was
shut down Monday night after attempts were made Monday morning to hack into
its system.
[SOURCE: Washington Post (A25), AUTHOR: Stephen Barr]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/12/157l-051299-idx.html)

INTERNET COMPANIES PREPARE FOR PRIVACY REPORT CARD
Issue: Privacy
An industry-funded survey of companies on the Internet, expected to be
released today, will grade the efforts of roughly 360 Internet sites for
their efforts to protect the personal details they collect about consumers.
Last summer a similar study found that only 14% of sites adequately warned
how they used private information they collected about customers. The
Federal Trade Commission, expected to recommend to Congress this summer
whether new Internet privacy laws are needed, has said it wanted to see
results from the study before making any decisions. Privacy groups complain
that the online industry has done a poor job protecting customer
information, noting that some Web sites sell the information to third-party
advertisers
and others. Some critics complain that the latest study didn't measure
whether a Web site's privacy policy was sufficient, but just looked to see
whether one existed.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/055591.htm)

CASE: INTERNET A CIVIL RIGHTS ISSUE
Issue: Minorities
Equal access to online services is "the civil rights issue of the 21st
century," according to America Online Chairman Steve Case speaking to the
Leadership Conference on Civil Rights in Washington Tuesday. Using figures
from a 1998 Commerce Department study on minority access to the Internet,
Case said that whites are more than twice as likely to own a computer than
blacks and Hispanics. Case also called for work place diversity and said
that low numbers of minority students graduating in the technical sciences
gave him
reason to be concerned. He did not, however, provide figures for minority
employment at AOL.
[SOURCE: Washington Post (Online), AUTHOR: Associated Press]
(http://search.washingtonpost.com/wp-srv/WAPO/19990511/V000093-051199-idx...)

FOR DUELING LAWYER, THE INTERNET IS UNLIKELY REFEREE
Issue: Internet
Just as people can fill prescriptions and obtain degrees online, now they
can also settle legal disputes via the World Wide Web. A new Wed site,
cyber$ettle.com, allows lawyers to make and accept settlement offers online.
The cases, most of which are personal injury claims, are settled through a
blind-bidding system. A computer program automatically settles the case when
the parties' offers are in $5,000 or 30% of each other. "In some cases it's
more effective, because the parties don't get a chance to yell at each
other," says Ethan Katsh, a legal studies professor who oversees the program.
[SOURCE: Wall Street Journal (B1), AUTHOR: Ann Davis]
(http://wsj.com/)

ADVERTISING

FALWELL LIGHTS INTO BUDWEISER
Issue: Advertising
Last month, Jerry Falwell complained in his e-mail newsletter, Falwell
Confidential, that Anheuser-Busch "presents two Bud-drinking homosexual men
in a hand-holding posture." Actually neither of the men is shown drinking a
Bud. But they really are holding hands. So far, the ad ("Be yourself and make
it a Bud Light") has run only in EXP, a small, gay biweekly magazine in St.
Louis, and is only scheduled to run in other gay publications.
Anheuser-Busch set up a toll-free line for callers to register support for
the new campaign. After Falwell complained that the company had not set up a
number to register opposition, Anheuser-Busch promptly set up a separate
line for callers to do just that. The company will not say which line has
generated more calls. The company tactfully says;"Today's consumer is not
one of a specific gender, race, geography or orientation." Budweiser been
running less overt ads in gay magazines for several years.
[SOURCE: Washington Post (C1), AUTHOR: Hanna Rosin]
(http://www.washingtonpost.com/wp-srv/WPlate/1999-05/12/046l-051299-idx.html)

MUSIC ONLINE

GRATEFUL DEAD LETS FANS SWAP CONCERT RECORDINGS OVER WEB
Issue: Internet
Spokesmen for the Grateful Dead, pioneers in using freely available live
recordings as a promotional tool, announced Tuesday the band will let its
fans legally swap online recordings of live performances. At a time some
industry observers are warning that Web distribution of pirated music could
destroy the market for compact discs, the Dead stand as a compelling example
of the opposite principle. Using a file-compression format known as MP3,
millions of people have begun using their computers as jukeboxes. Next week
the groundbreaking rap group Public Enemy will release its latest album in MP3
format on the Web -- one month before it hits stores. Industry observer Mark
Hardie, of the market analysis firm Forrester Research, predicted that the
widespread acceptance of MP3 would prompt even the major record labels to
adopt a business model once unique to the Dead. The Dead's policy also
includes the provision that no third parties may profit from the band's music,
either by selling recordings directly or by making money off advertising or
other services.
[SOURCE: San Jose Mercury News, AUTHOR: Stephen Buel]
(http://www.mercurycenter.com/svtech/news/indepth/docs/dead051299.htm)

SONY, FOLLOWING UNIVERSAL, TO SELL DIGITAL MUSIC ONLINE
Issue: Internet
Sony announced Wednesday that it will use Microsoft technology to sell music
digitally online. Following Universal's announcement last week that it will use
Microsof's rival, Intertrust Technologies to sell music online, the two
companies are getting ahead of the industry group -- Secure Digital Music
Initiative -- set to create industry standards by June 30. Fred Ehrlich of Sony
says the company will wait until the standards are released before they begin
selling, but that "it doesn't hurt the record industry to try to establish
relationship in anticipation." The Microsoft technology, Media 4.0, allows
songs to be downloaded from the Internet, stored or copied to a computer hard
disk, CD or floppy disk. The software prevents the music from being played
unless "the user pays for them or meets other licensing agreements," said
Microsoft's Will Poole.
[SOURCE: New York Times (C2), AUTHOR: Matt Richtel]
(http://www.nytimes.com/library/tech/99/05/biztech/articles/12sony-music-on
line.html)

YAHOO TO OFFER NET RADIO
Issue: Internet/Radio
Yahoo unveiled Yahoo Radio that offers 10 channels of music delivered over the
Internet. Erik Schwartz, senior producer of Yahoo Radio, said there is only one
difference between Yahoo Radio and traditional radio, "we're using the Internet
as a broadcasting medium." Like Lycos Radio Network, to listen to Yahoo
radio, online audiences must have a PC with a sound card and free software
from Real Networks. Earlier this month, Arbitron Company and Edison Media
Research released a study that found the number of people listening to the
radio online has doubled over the last six months. There are several
advantages of online radio for advertisers. Whereas banner ads may be
ignored, it is hard to avoid ads played between songs. People can do other
things while listening as well, which means longer online sessions. Marc
Morgenstern of the American Society of Composers and Performers says the
increased availability of music online is a good thing. "It's good news for
the audience because they can find what they want, and its good news for the
creators because they can find an audience."
[SOURCE: CyberTimes, AUTHOR: Lisa Napoli]
(http://www.nytimes.com/library/tech/99/05/cyber/articles/12radio.html)

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