February 1999

E-COMMERCE/INFOTECH
Amazon Buys Stake In Upstart Drugstore.Com (WSJ)
Sites Find New Ways to Profit (WP)
Privacy Concerns Aside, Consumers and Schools Rush to Get Free PCs (NYT)

MERGER
Phone Merger Blasted by ICC Staff ChiTrib)

TELECOMMUNICATIONS/REGULATION
Speech: Moving On (FCC)
Speech: Furchtgott-Roth at the Federal Communications
Bar Association (FCC)

SATELLITE TV
DirecTV, Congress Scramble To Avoid Network Cutoff (WSJ)

BUDGET ISSUES
U.S. Lawmakers Want Permanent Research Tax Credit (SJM)

POLITICS
High-Tech Entrepreneurs Dive Into California Politics (CyberTimes)

ANTITRUST
Microsoft Officials Deny Sabotage (WP)

E-COMMERCE/INFOTECH

AMAZON BUYS STAKE IN UPSTART DRUGSTORE.COM
Issue: E-Commerce
Amazon.com bought 40% of Drugstore.com, a 7-month-old online company that wants
to sell everything from toothpaste to Prozac, Anders reports. Amazon's CEO,
Jeffrey Bezos said the U.S. pharmaceutical market is six times greater than the
book business and there are similarities between what people want in books and
what they want in drugs that makes it a good duo: "Customers want selection,
convenience, price, and information." Amazon will share management tips with
Drugstore.com and lead Amazon customers to the drug retailer through their
website. Bezos says further Amazon investments in other retail websites are
likely. The Seattle-based online drug seller does not hold inventory and has
contracted with two Texas distributors. Peter Neupert, Drugstore.com's CEO says
they have hired 35 pharmacists to oversee the prescription process. Doctors must
fax in prescriptions in line with state regulations. He also says the company
won't host web ads on its site, for fear that customers will not be trusting of
the site's information.
[SOURCE: Wall Street Journal (B1), AUTHOR: George Anders]
http://wsj.com/
See also:
Drugstores Next for Internet
[SOURCE: San Jose Mercury News, AUTHOR: Charlie McCollum]
http://www.mercurycenter.com/svtech/news/indepth/docs/drugs022599.htm
PRESCRIPTION FOR SUCCESS: THE SMART WAY TO SHOP FOR DRUGS ONLINE
http://www.anchordesk.com/a/adt0225ba/3131

SITES FIND NEW WAYS TO PROFIT
Issue: Electronic Commerce
Internet companies are devising clever new methods for wheedling money out
of visitors to their websites. Most of the Internet has been left out of the
financial bonanza of Web advertising. Of last year's projected $2 billion in
Web advertising revenue, 70 percent went to the Internet's top 10 sites,
according to the Internet Advertising Bureau. Most Web content is handed out
for free; only a few sources, usually with financial information (the Wall
Street Journal) or sex, can ask for a premium price for everything. Efforts
at finding advertising generally fall between the two extremes. Often they
mix free content with time-based, event-based and a la carte payment
systems. Microsoft's Slate stopped charging for their site when editor
Michael Kinsley noted the "spreadsheet wizards" convinced him that the extra
traffic and advertising from a free site would more than exceed Slate's lost
subscription fees. He learned that "Web readers surf" and "are unlikely to
devote a continuous half-hour or more" to a single site.
[SOURCE: Washington Post (E1), AUTHOR: Leslie Walker]
http://www.washingtonpost.com/wp-srv/business/feed/biztop919945605056.htm

PRIVACY CONCERNS ASIDE, CONSUMERS AND SCHOOLS RUSH TO GET FREE PCS
Issue: Privacy/Access
Over one million people have signed up to receive free computers from
Free-PC, the company that announced it would give away 10,000 computers to
people who agree to watch adds and disclose personal information. Almost
6,000 schools have signed up for a similar offer from Zap It, which has
already given 55 schools computers with satellite-based Internet
connections. The Zap It computers display advertising in the left-hand
corner on the screen. While these deals seem popular with schools and
consumers, they make privacy advocates a little uncomfortable. These free
PCs will have the ability to closely monitor user habits as well as simply
displaying advertising. "You're letting a surveillance device into your
home," says Jason Catlett, president of an organization that opposes
intrusive marketing. Some school officials have responded just as negatively
to the Zap Me offering, "arguing that their mission is to educate, not act
as an advertising conduit," writes Richtel. Ted Maddock, technology
coordinator for one of the schools that has Zap It computers, doesn't see
things that way. "Someone offered us $70,000 worth of computers," Maddock
said. "It's been working well."
[SOURCE: New York Times (E7), AUTHOR: Matt Richtel]
http://www.nytimes.com/library/tech/99/02/circuits/articles/25free.html

MERGER

PHONE MERGER BLASTED BY ICC STAFF
Issue: Mergers
The staff of the Illinois Commerce Commission has filed a "broad and
stinging denunciation" of the proposed SBC-Ameritech merger. The staff
concludes that the merger would stifle competition [who would have guessed
that] and hurt residential phone service. The staff report may scuttle hopes
of a compromise as seen in Ohio earlier this week. ICC's staff attorney's,
led by Darryl Reed, warn that the merged company would require tight state
regulation -- regulation that would be much more difficult than it has been
to supervise Ameritech: "Approval of the merger will delay, perhaps
indefinitely, the transition from regulated telecommunications markets to a
greater
reliance on competition, even if conditions are attached to the merger," Mr.
Reed and his colleagues wrote. "As a result, a merged SBC/Ameritech will
require greater regulatory oversight. Simply put, approval of the merger is
a statement for regulation over competition." Based on SBC's own statements,
the staff report says, "the proposed merger will diminish Ameritech's
ability to provide adequate, reliable, efficient, safe and least-cost public
utility service" as Illinois law requires. Obviously in denial, Ameritech
Chairman Richard Notebaert said, "Our merger is gaining momentum," in a
reference to the deal with the Ohio utility commission's staff. While he
cautioned that the Ohio commissioners themselves must still vote on
approving the merger, Mr. Notebaert said he is encouraged the SBC/Ameritech
merger will ultimately win regulatory approval. [I mean, what else is he
going to say?]
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
http://chicagotribune.com/textversion/article/0,1492,ART-24009,00.html

TELECOMMUNICATIONS/REGULATION

SPEECH: MOVING ON
Issue: Telecommunications
Chairman Kennard's Remarks before the NARUC Winter Meeting in Washington,
DC: Like you, I feel enormously privileged to be involved with the telecom
industry now as we begin these historic transformations from an analog age
to a digital one; from a world of monopoly to a world of competition; and
from an era of basic services to an era of convergence. This technological
transformation began in our nation's labs and universities. It began with
the hard work and vision of people willing to take risks on new ideas and
new technologies. And it began because government created the opportunities
for scientists and entrepreneurs to take these chances. Indeed, our
contribution to this communications revolution has been our privilege, our
responsibility to follow through on the wishes of Congress in implementing
the Telecommunications Act of 1996. In drafting this bill, the foundational
document for the competitive, high-tech world to come, Congress reached back
to one our oldest values: choice.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Kennard/spwek909.html

SPEECH: FURCHTGOTT-ROTH AT THE FEDERAL COMMUNICATIONS BAR ASSOCIATION
Issue: FCC/Regulation
Commissioner Furchtgott-Roth's Remarks to the Federal Communications Bar
Association: Most Americans, though, do not understand Washington beyond the
passing images of a few famous people on television. Most have never been to
Washington, or even know anyone in Washington. It is a very distant city.
These Americans have never heard of the FCC or the FCBA. When they have a
communications problem, they don't call you or me. They don't know we exist.
They may not know that some communications problems are created and solved
in Washington. Or to the extent they know, they may believe that they have
no capacity to be listened to in Washington beyond
the anonymity of a phone call, letter, or e-mail to an unknown recipient in
Washington. But these ordinary Americans, these mere citizens, have voices.
Voices that can get angry at times.... I
would like to give that answer. Begin by saying that the FCC is an agency
that simply follows the federal communications law as written by Congress.
More specifically , the FCC should follow the law narrowly as it is written
in statute, consistent with the Constitution and with court decisions. We at
the FCC are law-followers, not lawmakers. We are merely regulators with
limited power conferred by statute. Moreover, we do not even make "policy."
Congress sets federal telecommunications policy. It is our duty to follow
it....If we at the FCC lack the specific authority to force an individual,
company, or industry to do something in one area, we must
not threaten action in a different area where we actually do have power, in
order to achieve the same result. All too often, I have seen the threat of
regulation in one area used to influence decisions in another area. In my
view, this is outside the law. I don't believe that the ordinary American
could fathom how a police officer in their home town could decide whether to
give a car a parking ticket based on whether or not the owner was appealing
an unrelated speeding ticket. The Commission must also abide by the
Administrative Procedure Act and its requirements for open and transparent
rulemakings: No decisions behind closed doors; An agency open and
transparently visible to all Americans; An agency with no secret documents
or secret rules. Open process is something ordinary Americans understand....
How should we explain discretion to
ordinary Americans? First, have humility about the power of regulation.
Second, keep it simple and predictable. Third, where there is discretion,
let governmental decisions be made as close to the people as possible.
Fourth, where regulation is required by law, try to make sure that benefits
significantly exceed the costs. Fifth, view new technology as an opportunity
to reduce, not to expand, regulation.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Furchtgott_Roth/sphfr901.html

SATELLITE TV

DIRECTV, CONGRESS SCRAMBLE TO AVOID NETWORK CUTOFF
Issue: Broadcast/Satellite TV
In order to avoid the court ordered shut-off of satellite signals of network
broadcasting to viewers, Rep. John Dingell (D-MI) will introduce a bill this
week that would allow satellite-TV viewers to continue receiving the network
signal until the Federal Communication Commission can decide on a fair standard
in determining eligibility. The battle began when CBS and Fox complained that
PrimeTime 24, a satellite-TV carrier, was illegally packaging their broadcasts
and sending them to viewers. Miami federal court ordered a shut-off for 700,000
subscribers by this Sunday and another 1.5 by April 30. In other legislation,
to avoid the shut-off, the Senate Judiciary Committee is likely to approve a
bill today that would resolve the copyright problem facing satellite-TV
servers. Senate Commerce Committee is set to vote on a bill next Wednesday,
introduced by Chairman John McCain (R-AZ), that would allow satellite carriers
to retransmit network signals locally. Meanwhile, DirecTV, the largest
satellite-carrier in the country is trying to avoid the court-ordered shut-off
by no longer using PrimeTime 24, but providing network programs themselves. A
DirecTV spokesman said, "That way, we are no longer under the court order,
which applies only to PrimeTime 24." Not so fast--four major networks plan on
asking the court to impose a temporary restraining order against the move.
[SOURCE: Wall Street Journal (B2), AUTHOR: Kathy Chen]
http://wsj.com/
See also:
SATELLITE TV BATTLE RAGES
[SOURCE: San Jose Mercury News, AUTHOR: Jon Healey]
http://www.mercurycenter.com/svtech/news/indepth/docs/dbs022599.htm

BUDGET ISSUES

U.S. LAWMAKERS WANT PERMANENT RESEARCH TAX CREDIT
Issue: Competition, Employment
A bipartisan coalition of US lawmakers Wednesday proposed legislation to
encourage high-technology companies to invest billions of dollars more in
research and development to create US jobs and keep foreign competitors at
bay. The bill would make the federal Research and Development Tax Credit
permanent, with an estimated cost of $2.5 billion per year. Congress has
pass nine extensions to the law since its inception in 1981. A Coopers and
Lybrand study concluded that permanent extension of the tax credit would
lead to a $41 billion increase in US research and development spending
through 2010. The bill was introduced by Representative Nancy Johnson (R-CT)
and co-sponsored by 90 lawmakers.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/180969l.htm

POLITICS

HIGH-TECH ENTREPRENEURS DIVE INTO CALIFORNIA POLITICS
Issue: Democracy/Technology
In Silicon Valley, some high-tech entrepreneurs have begun to show an
interest in politics. They are finding, however, that the political process
moves forward at a much different rate than the rapidly evolving technology
industry they are used to. Tim Draper, a venture capitalist, discovered this
democratic reality when he attempted to use the Internet to collect
signatures for a school choice initiative in California. Electronic
signatures, he learned, are not legal on California petitions. Silicon
Valley is easily frustrated a political system in which change can only
occur as a result of painstaking consensus regardless of technological
realities. "The whole deliberative system just seems like a waste of time to
the technologists," said Bruce Cain, a political scientist at the University
of California at Berkeley. He became aware of this perspective when students
asked him why they could not just eliminate government and vote on policy
issues from their laptops.
[SOURCE: CyberTimes, AUTHOR: Rebecca Fairley Raney]
http://www.nytimes.com/library/tech/99/02/cyber/articles/25politics.html

ANTITRUST

MICROSOFT OFFICIALS DENY SABOTAGE
Issue: Antitrust
In testimony at the Microsoft antitrust trial yesterday Erik Engstrom, a
Microsoft engineer, said that his company wanted Apple Computer not to
distribute multimedia software that competed with a Microsoft product, but
he denied that Microsoft sabotaged its product after Apple balked. His
testimony disagreed with that of Apple executive Avadis Tevanian who
testified as a government witness earlier in the trial. Later in the day
Joachim Kempin, a Microsoft senior vice president, defended limits the
company placed on the way personal computer makers can alter Microsoft's
dominant Windows operating system. He said the company did not want anyone
to tamper with the "good design" of its products. The pace of the trial has
picked up this week in hopes that the company's defense can conclude by
Friday to permit a recess of several weeks.
[SOURCE: Washington Post (E3), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/feed/biztop919945618816.htm
See also:
EXECS DENY PRESSURING APPLE, GATEWAY
[SOURCE: San Jose Mercury News, AUTHOR: David L. Wilson]
http://www.mercurycenter.com/business/microsoft/trial/

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TELEVISION
Public Access Feeds Democracy in Raw,Televised Form (ChiTrib)
A Sweeping Look at Local News 'Specials' During the
All-Important Ratings Period (ChiTrib)

UNIVERSAL SERVICE/TELEPHONE
Statement of Commissioner Harold Furchtgott-Roth on Recommendation
of Schools and Libraries Committee of USAC (FCC)
Chairman Kennard's Statement on Funding of Rural Schools
and Libraries (FCC)
A Pro-Consumer, Pro-Competition Agenda (FCC)
Bells, GTE Ask Court To Further Delay FCC Price Rules (SJ Merc)

INTERNET
Proposal on Internet Names Favors Corporate Interests (CyberTimes)
Upgrade Begins on National Network (LA Times)
Junk E-Mail Filters Spawn a Suit Against Microsoft (CyberTimes)
Excite Pulls Adult Ads From Kid-Safe Site (SJ Merc)

PRIVACY
After Intel Chip's Debut, Critics Step Up Attack (CyberTimes)

ANTITRUST
Compaq Discloses It Feared Microsoft Retaliation (WSJ)
Linux Gaining Serious Momentum (SJ Merc)

TELEVISION

PUBLIC ACCESS FEEDS DEMOCRACY IN RAW,TELEVISED FORM
Issue: Public Access
With an annual budget of $1.9 million -- approximately the cost of a
30-second ad during the Super Bowl -- Chicago Access Network Television (CAN
TV) has delivered 60 hours -- in just this month -- of coverage of the
upcoming City of Chicago election. CAN TV is a nonprofit organization which
reaches 36% of the homes in Chicago and is supported by cable franchise
fees. It operates five channels and helps 270 nonprofit groups get their
message out to the community. "We are a conduit for all sorts of diverse
viewpoints. Too many people are being shut out, stereotyped and otherwise
minimalized. Commercial television just does not do people justice," said
Barbara Popovic, executive director of Chicago Access Corp., the non-profit
group that runs CAN TV channels and services. "This is about education, not
packaging products. This is not the purview of an elite, trained corps."
Bunnie Riedel, executive director of the Alliance for Community Media, the
Washington-based group representing some 2,000 similar operations around the
country, said public access channels are paying attention to what is no
longer economically viable for most commercial stations. "We're not about
bells and whistles. We're about content, and we don't have to worry about
ratings," Riedel said. "They (commercial TV) give us the World Wrestling
Federation and the 5,000th rerun of `Dr. Quinn, Medicine Woman,' but they
forget to tell us what goes on in our own community."
[SOURCE: Chicago Tribune (p.1), AUTHOR: Tim Jones]
http://chicagotribune.com/news/printedition/article/0,1051,SAV-9902190136,0
0.html

A SWEEPING LOOK AT LOCAL NEWS 'SPECIALS' DURING THE ALL-IMPORTANT RATINGS PERIOD
Issue: Television/Journalism
The "On Television" column looks at the special reports of local news
outfits during sweeps weeks. Johnson finds that newscasts are pandering to
an audience -- " not at the louts who foam at the mouth over any image of a
woman in her skivvies, but rather at women themselves." So here we've news
special segments on skin moisturizers, diapers, and the use of public
transit when school buses are not available.
[SOURCE: Chicago Tribune (Sec5, p.1), AUTHOR: Steve Johnson]
http://chicagotribune.com/leisure/tempo/printedition/article/0,1051,SAV-990
2190122,00.html

UNIVERSAL SERVICE/TELEPHONE

STATEMENT OF COMMISSIONER HAROLD FURCHTGOTT-ROTH ON RECOMMENDATIONS OF
SCHOOLS AND LIBRARIES COMMITTEE OF USAC
Issue: Universal Service
I have received word from Cheryl Parrino, the President of the Universal Service
Administrative Company (USAC), that the Schools and Libraries Committee of
the USAC Board
has recommended changes to internal procedures to enable USAC to provide
sufficient funds to
cover all of the requests for schools with discounts of between 70% and 76%.
I am relieved that
these schools, which were not included in recent distributions, but should
have been, will now
receive funding as well and commend the Schools and Libraries Committee for
making this
change. The inclusion of these schools in the 70%-76% range --
particularly those rural schools
at the 70% discount level -- is what the Commission had envisioned.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Furchtgott_Roth/Statements/sthfr907.txt

CHAIRMAN KENNARD'S STATEMENT ON FUNDING OF RURAL SCHOOLS AND LIBRARIES
Issue: Universal Service
Statement in full: Discounts to support services to schools and libraries
are an important part of the universal service mandate in the Communications
Act -- the discounts that connect classrooms to the Internet today will
produce jobs and opportunities in the economy of our future. The Universal
Service Administrative Company (USAC) has done an excellent job implementing
all of the universal service provisions of the Telecommunications Act of
1996. The Schools and Libraries Division of USAC has sent out tens of
thousands of letters committing funds to eligible schools and libraries. To
date, $1.08 billion in funding for internet access, telecommunications
services, and internal connections has been committed. Letters committing an
additional $250 - $300 million will be issued on February 20. USAC hopes to
send out all commitment letters by February 28. Although not all schools and
libraries will receive all of the funding they requested, all applications
for telecommunications services and Internet access from eligible schools
and libraries will be funded. In addition, funds are available to support
internal connections for all the schools and libraries qualifying for 70%
discounts. USAC has asked the Common Carrier Bureau staff for authorization
to take the steps necessary to fund these internal connections. I have
directed the Bureau to respond quickly so that funding will not be delayed.
All of these funds have been and will continue to be distributed consistent
with our rules which ensure that support for internal connections goes to
the schools and libraries that have the most need for support.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Kennard/Statements/stwek912.html

A PRO-CONSUMER, PRO-COMPETITION AGENDA
Issue: Regulation/Competition/Universal Service
Commissioner Ness' Speech before the Florida Communications Policy
Symposium: At the threshold of the 21st century, the FCC is committed to:
promote competition, deregulate as competition develops, protect consumers,
ensure broad access to communications services, foster innovation, and
advance competitive goals worldwide. These goals -- pillars of the
Telecommunications Act of 1996 -- are not mutually exclusive....We are in
the midst of an extraordinary transition between monopoly and competitive
provision of telecom and video services. The velocity of change is stunning.
Convergence has blurred the regulatory definitions and jurisdictional
boundaries that for so long have structured the marketplace. And
technological innovations are creating new headaches and solutions at the
same time. It's the regulatory equivalent of Hurricane Georges!
Established companies are expanding their offerings and adapting to a new
environment. New entrants are sprouting up to serve real or perceived
"niches." New business alliances are being announced every day. Policymakers
need to keep pace. We, too, need to change. We need to be prepared to act
swiftly, whether the action needed is a surgical intervention or a retreat
from a regulation that is no longer needed. We need to bury the
jurisdictional hatchets that have
split us in the past. At all times, our focus must be on the consumer.
Whether we be legislators or regulators, whether we serve at the state or
federal level, we need to work together to ensure that the inclusive,
pro-competitive, deregulatory vision of the Telecommunications Act is
realized for all Americans.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Ness/spsn905.html

BELLS, GTE ASK COURT TO FURTHER DELAY FCC PRICE RULES
Issue: Telephony
Four regional Bell operating companies and GTE Corp. asked a St. Louis
Appeals Court to continue to prevent Federal Communications Commission rules
intended to open the local telephone market from taking effect. They said
they intend to press other parts of their lawsuit. The Supreme Court last
month rejected most of the group's earlier challenges to the rules which had
been written by the FCC to carry out the 1996 Telecommunications Act. The
Supreme Court held that the FCC had authority to issue the pricing rules.
SBC Communications Corp., Ameritech Corp., Bell Atlantic Corp., US West and
GTE said Thursday they intend to challenge the pricing rules as an
unreasonable action by the FCC and asked that the rules of state authorities
remain in effect until their latest challenge is decided. AT&T and MCI
WorldCom representatives said their companies would oppose the request to
further delay the FCC rules.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
http://www.mercurycenter.com/svtech/news/breaking/reuters/docs/161201l.htm

INTERNET

PROPOSAL ON INTERNET NAMES FAVORS CORPORATE INTERESTS
Issue: Internet
New rules being drafted by the World Intellectual Property Organization
(WIPO) http://www.wipo.org, an arm of the United Nations, for the Internet
Corporation for Assigned Names and Numbers (ICANN) http://www.icann.org
would favor trademark holder's in disputes over Internet domain names. Some
fear that the proposal would ultimately stifle free expression on the
Internet and give governments and corporate interests the power to
intimidate everyday Internet users into relinquishing addresses to which
they have already laid rightful claim. [Damn those governments and corporate
interests!] The proposal, WIPO said, "does not suggest the creation of new
intellectual property rights, but, rather, recommends ways in which
existing, multilaterally agreed standards for intellectual property
protection can be given expression in cyberspace." A. Michael Froomkin
http://www.law.tm/, a law professor at the University of Miami, said WIPO
had overstepped its charge and tried to "solve every imagined intellectual
property problem related to domain names, instead of concentrating on the
trademark-related issues that most urgently need solution....There are no
safe harbors," Froomkin writes. "A person might register his own name, only
to find that someone in another country who has a trademark on the same word
believes he should be entitled to claim the domain. In the U.S., trademark
infringement requires commercial use, and ordinarily requires a risk of
customer confusion as well. But under WIPO's plan, one cannot rely on the
protection of national law, because the WIPO rules tell the arbitrator to
pick and choose 'principles' from among the legal systems of the world. If
the complainant wins, the registrant may have to pay the complainant
thousands of dollars in expenses. My fear is that only the most wealthy
would undertake the risk of arbitration on these conditions, and that many
ordinary people with perfectly legitimate domain name registrations will
feel compelled to surrender without a fight." See also
http://www.law.miami.edu/~amf, Froomkin's critique of WIPO's proposal.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/99/02/cyber/articles/19wipo.html

UPGRADE BEGINS ON NATIONAL NETWORK
Issue: Infrastructure
MCI WorldCom has begun a major upgrade of the National Science Foundation's
nationwide network for testing next-generation Internet technologies. The
vBNS circuit (very-high-speed Backbone Network Service), which is operated
by MCI WorldCom under a five year contract, will quadruple the network's
data-carrying capacity from its present speed of 2.5 gigabits of data per
second. The circuits are used mainly by government and academic researchers
and will allow more precise modeling. Officials say the upgrade will be
completed without laying any new fiber-optic lines.
[SOURCE: Los Angeles Times (Online), AUTHOR: Karen Kaplan]
http://www.latimes.com/HOME/BUSINESS/t000015524.1.html

JUNK E-MAIL FILTERS SPAWN A SUIT AGAINST MICROSOFT
Issue: E-Commerce/Spam
Can Microsoft get into anymore trouble? Filtering software created by the
company has been found to block the email of legitimate businesses -- like
Blue Mountain Arts http://www.bluemountain.com/ greeting cards. The result
is a lawsuit that is pitting the rights of a software company to innovate
freely against the rights of a company that says its business was disrupted
because its notices were labeled as junk e-mail, Kaplan writes. You probably
didn't expect this, but one wrinkle to the case is allegations that
Microsoft engaged in illegal tactics to protect its own virtual greeting
card business http://insider.msn.com/greetings/ECards-010699/default.asp.
"This is an early lawsuit in what will become a classic grievance," said
Blake Bell, a lawyer who specializes in Internet issues at the New York
office of Simpson Thacher & Bartlett. "Filters of all kinds will
increasingly have a substantial impact on a company's ability to conduct
e-commerce, and the [blocked] company will have a desire to assert legal
claims in order to secure an unfettered ability to compete." Also see Blue
Mountain's litigation page
http://www2.bluemountain.com/home/ImportantNotice.html?020399 and
Microsoft's litigation page http://www.microsoft.com/presspass/bluemt/ --
could take awhile to load this one.
[SOURCE: CyberTimes, AUTHOR: Carl S. Kaplan kaplanc( at )nytimes.com]
http://www.nytimes.com/yr/mo/day/tech/indexcyber.html

EXCITE PULLS ADULT ADS FROM KID-SAFE SITE
Issue: Internet/Advertising
Green meant go for The Register, a British publication that found porn ads
showing up on a kid-safe search engine. An Excite feature called "Green Light"
is supposed to display search results that excludes adult-oriented content.
But, on Wednesday, The Register, a British publication reported raunchy banner
ads were popping up over search results. An Excite spokesperson said Thursday
that running the ads were an "oversight." This slip happened in the midst of
legal
troubles -- Playboy and Este Lauder are targeting Excite for illegally selling
advertisements that show up after these names are entered as key-word searches.
[SOURCE: San Jose Mercury News, AUTHOR: Matthew Broersma]
http://www.zdnet.com/zdnn/stories/news/0,4586,2212112,00.html

PRIVACY

AFTER INTEL CHIP'S DEBUT, CRITICS STEP UP ATTACK
Issue: Privacy
The Electronic Privacy Information Center (EPIC) has stepped up efforts to
oppose the Pentium III chip and its controversial identification system.
Junkbusters Inc. and Privacy International have convinced the Center for
Media Education and the Privacy Rights Clearinghouse to sign letters they
are preparing to send to computer manufacturers and to the Federal Trade
Commission. The letters to computer manufacturers will ask for information
on whether the companies plan to ship the new chips, and if so, how and if
they will disable the identification function. "The organizers are
considering extending the boycott to major PC manufacturers who ship Pentium
III systems in a configuration that would significantly damage consumer
privacy," the draft letter states. "We request your assistance in providing
us with information on your company's intentions, so that we can determine
our organization's boycott policy regarding your company and any individual
consumer products" that contain such a processor serial number. In the
letter to the FTC, the groups "ask the Commission to consider what action it
might take to reduce the harms to consumer privacy and e-commerce identified
here, including any means to compel the company to disable the feature and
order a recall, whether directly or through PC manufacturers." Here are some
URL's to help you follow the action: Intel http://www.intel.com, EPIC
http://www.epic.org, Junkbusters Inc. http://www.junkbusters.com,
Privacy International http://www.privacyinternational.org/, Center for
Media Education http://www.cme.org, Privacy Rights Clearinghouse
http://www.privacyrights.org, FTC http://www.ftc.gov.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing jeri( at )nytimes.com]
http://www.nytimes.com/library/tech/99/02/cyber/articles/19intel.html

ANTITRUST

COMPAQ DISCLOSES IT FEARED MICROSOFT RETALIATION
Issue: Antitrust
"How retaliatory could they get?" -- a Compaq slide presentation made prior to a
1993 meeting with Microsoft lists 12 ways Microsoft could hurt Compaq if they
didn't use their software -- was disclosed in the Microsoft antitrust trial. The
presentation was made before Compaq signed a five-year agreement to get
Microsoft software at a price better than any other PC maker. John Rose, Compaq
senior vice president testified that although Compaq has an exclusive contract
with Microsoft and its Internet browser and it is the first thing that shows up
on the screen, "Netscape's browser can also be used at the click of a mouse."
Being that Rose's testimony conflicted with earlier testimony by other Compaq
officers, Judge Thomas Penfield Jackson questioned Rose's authority to speak
for the company. Rose replied, "I as an officer of the company speak for the
company."
[SOURCE: Wall Street Journal (A3), AUTHOR: John R. Wilke and Keith Perine ]
http://wsj.com/
See also:
Judge Sharply Questions Microsoft
[SOURCE: Washington Post (E3), AUTHOR: Rajiv Chandrasekaran]
http://www.washingtonpost.com/wp-srv/business/longterm/microsoft/micro.htm

LINUX GAINING SERIOUS MOMENTUM
Issue: Antitrust
Linux is no cartoon character. The fast-growing operating system will sell
1,300 computers to Burlington coat factory, beating out Microsoft.
International Business Machines Corp. announced Thursday they plan to sell
computers pre-loaded with Linux. The company, created by a Finnish student in
the early 90's, Linus Torvalds, made up 17 percent of the software shipped for
running business machines last year. Users praise its resistance to crashing
and its price. It can be downloaded free from the Internet or bought from
distributors for about $50. Unlike Microsoft, it shares its code with the Web
so programmers can easily make improvements. While many corporate managers
remain loyal to Microsoft, this spark of competition is welcome news to
Microsoft in light of the antitrust trial. A Microsoft spokesperson said, "We
are happy to compete head-to-head with Linux on the merits of the technology
and the business model."
[SOURCE: San Jose Mercury News, AUTHOR: AP]
http://www.mercurycenter.com/svtech/news/breaking/merc/docs/078261.htm

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
...and we are outta here. Have a great weekend. Hey, did anyone notice that
Clemens deal? The rich just get richer.

INTERNET
Free Speech and the Internet (NYT)
The Internet: A Reliable Source? (WP)
Privacy Groups Urge Intel Boycott (WP)
Web Pirates Reveal Soap-Opera Plots by Intercepting
Advance Transmission (WSJ)

BROADCAST
Broadcast Ownership Rules, and Regulations Governing
Television Broadcasting (NTIA)

MERGERS
Transfer of Licenses: Puerto Rico Telephone Company to
GTE Holdings (FCC)

INTERNATIONAL
Canada, U.S. in Magazine Dispute
News Corp., Telecom Italia Terminate Discussions To
Form Digital-TV Alliance (WSJ)
(WSJ)

ANTITRUST
Microsoft Trial Virtual Court (SJMerc)
Protesters Seek Refunds on Windows (NYT)

INTERNET

FREE SPEECH AND THE INTERNET
Issue: Free Speech
[Editorial] There is a delicate balance between protecting free speech and
shielding children from harmful materials on the Internet. Two recent laws
show that the Constitution can be damaged if a proper balance is not struck.
The first case involves the 1998 Child Online Protection Act, which would
have required all commercial sites that contain material "harmful to minors"
to verify the ages of all users. A federal judge has wisely issued a
preliminary injunction against the law. However, in the case of a Virginia
law prohibiting state employees from accessing sexually explicit material on
the Internet, a Court has disregarded First Amendment concerns. The Fourth
Circuit Court of Appeals upheld the Virginia law on the grounds that the state
has the right to control the work-related activities of its employees. The
authors suggest that better options exist in both cases. Filtering software
can better protect children than laws that infringe upon the free speech of
adults. And the state of Virginia could have avoided First Amendment harm by
enacting a law that prohibited non-job-related uses of the Internet, instead
of making a content-related distinction that will hamper legitimate research.
[SOURCE: New York Times (A18), AUTHOR: New York Times Editorial Staff]
http://www.nytimes.com/yr/mo/day/editorial/16tue3.html

THE INTERNET: A RELIABLE SOURCE?
Issue: Internet/Health
As many as 60 million adults used the World Wide Web last year for health
care information, according to a new poll of 1000 people by Louis Harris and
Associates made in January. Humphrey Taylor, chairman of the polling group,
said, "Health care is an enormous reason why people go online. And
amazingly, 91 percent said the last time they went online, they found what
they wanted." The polling company estimates 90 million people, 44 percent of
the adult population, use the Internet at home, work or school. Humphrey says
other studies have found the level of use is climbing fast as well, but
pollsters lack information on the quality of health information that is
being provided. The health sites most often visited online were created
either by medical societies or by patients' advocacy or support groups.
[SOURCE: Washington Post (Z17), AUTHOR: Marc Kaufman]
http://www.washingtonpost.com/wp-srv/WPlate/1999-02/16/042l-021699-idx.html

PRIVACY GROUPS URGE INTEL BOYCOTT
Issue: Privacy/Computer Technology
Critics of the upcoming Intel Pentium III chip sought Monday to widen their
boycott and enlist the Government in opposing the new technology.
Junkbusters Corp. and the Electronic Privacy Information Center sent letters
to privacy and consumer groups, including the American Civil Liberties
Union, urging them to request the Federal Trade Commission consider stopping
Intel from distributing the new technology. A separate letter was sent to
the FTC expressing fear for privacy on the Internet. Last month Intel
announced that the new Pentium chip will be able to transmit a unique serial
number internally and to websites that request it. The company said the
technology would help online merchants eliminate fraud. Some groups
protested that it gives companies the ability to trace a consumer's digital
footprints as they wander the Web. Robert Pitofsky, the chairman of the FTC,
has said in an interview that he does not believe the FTC has jurisdiction
in the matter. The Pentium III will be launched officially February 26.
[SOURCE: Washington Post (Online), AUTHOR: Ted Bridis (Associated Press)]
http://www.washingtonpost.com/wp-srv/business/daily/feb99/intel16.htm

WEB PIRATES REVEAL SOAP-OPERA PLOTS BY INTERCEPTING ADVANCE TRANSMISSION
Issue: Lifestyles!
The Web is stomping on an American institution--the soap-opera cliffhanger:
"closing the gap between content providers and consumers." A group called,
Spoiler 3 says they pick up a feed of "Days of Our Lives," as it's sent to
Canada a day earlier than it is broadcast in the US, transcribes the plot and
posts it on their website. Genoa City News website has a similar system for
posting "The Young and the Restless" plots. A viewer gets the feed from the
satellite and sends it in, says Brent Kellogg, manager of the site. A soap
executive confirmed that broadcasts are sent via satellite a day ahead to
Canada stations, to accommodate their schedule, but aren't broadcast until the
same time the next day in the US. "Publishing material sent privately via
satellite can carry a civil fine of as much as $2,000," a government-agency
person said. Doing it for a profit could raise the fine to $50,000. CBS
spokesperson, Dana McClintock says they are aware of the "net-spoilers," but
say it's not a problem. David Sperber, "Days of Our Lives" publicist is worried
that if people know what's going to happen they won't watch. Lynn Leahy, Soap
Opera Digest magazine editor, says no worries -- fans will still choose to watch
over reading plots on a screen. [And here we thought they performed all
those things live]
[SOURCE: Wall Street Journal (B15A), AUTHOR: Justin A. Oppelaar]
http://wsj.com/

BROADCAST

BROADCAST OWNERSHIP RULES, AND REGULATIONS GOVERNING TELEVISION BROADCASTING
Issue: Broadcast/Television
In a filing with the Federal Communications Commission (FCC), the
Department's National
Telecommunications and Information Administration (NTIA) [on Feb 12]
reiterates the importance of viewpoint diversity, localism and competition
for our nation's broadcast ownership policies.
"In light of the unprecedented level of media concentration in today's media
marketplace, NTIA urges the FCC to act decisively to preserve the core
principles of viewpoint diversity embodied in the First Amendment as well as
the fundamental values of localism and competition," Assistant Secretary of
Commerce Larry Irving said. The NTIA letter recommends a framework by which
to analyze whether proposed changes to the ownership rules further the
public interest. Applying this framework to the national and local ownership
rules currently under review by the FCC, NTIA
concludes that wholesale changes would harm the public interest, but
supports moderate relaxation in specific areas. See letter at
http://www.ntia.doc.gov/ntiahome/fccfilings/ownlet.htm
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/bcownerpr.htm

MERGERS

TRANSFER OF LICENSES: PUERTO RICO TELEPHONE COMPANY TO GTE HOLDINGS
Issue: Mergers
The Commission adopted a Memorandum Opinion and Order (Order) granting the
transfer of control of licenses and an international resale authorization
held by Puerto Rico Telephone Company (PRTC) and Telefonica de Puerto Rico,
Inc. (TPRI) from the Puerto Rico Telephone Authority (PRTA) to GTE Holdings
(Puerto Rico) LLC (GTE Holdings). This transfer of control will occur as
part of a transaction in which GTE Holdings will purchase from PRTA a major
ownership interest in PRTC and will obtain de facto control over PRTC. After
considering all of the issues raised by commenters in this proceeding, the
Commission concluded that the proposed transfer of control is in the public
interest. For more info: Meribeth McCarrick at 202-418-0654 or Jeffrey
Steinberg at 202-418-0896.
[SOURCE: FCC]
http://www.fcc.gov/Bureaus/Wireless/News_Releases/1999/nrwl9008.html

INTERNATIONAL

CANADA, U.S. IN MAGAZINE DISPUTE
Issue: Magazines & Journals
Canadian Trade Minister Sergio Marchi said Canada will not abandon a bill
aimed at restricting US magazine operations in his country. He said the US
was out of line in threatening to retaliate against Canadian steel and
textile imports if the magazine bill is passed. The bill would penalize
foreign publishers that sell space to Canadian advertisers in special
Canadian editions of their magazines, but it would permit the magazines
themselves to continue to be distributed. Canadian officials and publishers
say these so-called split-run magazines take ad revenue away from Canadian
magazines. Canadian officials say the bill should be passed by the House of
Commons by early April. They will meet with US officials Friday in a third
round of talks to resolve the issue.
[SOURCE: Washington Post (Online), AUTHOR: David Crary]
http://www.washingtonpost.com/wp-srv/WAPO/19990215/V000559-021599-idx.html

NEWS CORP., TELECOM ITALIA TERMINATE DISCUSSIONS TO FORM DIGITAL-TV ALLIANCE
Issue: International/Digital TV
An agreement between Rupert Murdoch's News Corp. and Telecom Italia failed on
Friday, due to a dispute over soccer rights and political disfavor to Murdoch's
breaking into the Italian market. The agreement would have relaunched Telecom
Italia's pay-TV unit, Stream SpA by acquiring the entire package of Italy's
series of soccer matches for the next six years. In December, Italian
politicians, fearing a foreign dominance of Italian media, put a 60 percent
limit on broadcast rights that any pay-TV provider could acquire. This decision
stopped News Corp. from its ability to buy enough of Italian broadcasting to
get Stream off the ground, in the face of its French, Canal Plus SA. Friday,
Murdoch attempted to change the original agreement to get around the
legislation and was balked at by Telecom Italia Chairman, Franco Bernabe, who
put an end to the agreement. Analysts say the dissolved deal is an example of
the high barriers the Italian market presents for European digital-TV groups
for profit-making, given the abundance of high quality free TV. Chairman
Bernarde says the potential is open for further talks with other foreign
companies in reviving Stream, including AT&T.
[SOURCE: Wall Street Journal (B15), AUTHOR: Deborah Ball]
http://wsj.com/

ANTITRUST

MICROSOFT TRIAL VIRTUAL COURT
Issue: Antitrust
Several major publications, including the San Jose Mercury News, have been
doing an excellent job covering the Microsoft antitrust trial that resumes
today after a four-day layoff. Some news organizations also have created
useful sites in cyberspace. The Mercury Center has a
website that is worth visiting for the Microsoft trial story. In addition to
continuing updates on the ongoing trial, it features a virtual layout of the
courtroom that is unique. Take a look. After that you can visit their new
online destination for general business and technology news and information
called SiliconValley.com which opened today.
[SOURCE: San Jose Mercury News]
http://www.mercurycenter.com/business/microsoft/trial/

PROTESTERS SEEK REFUNDS ON WINDOWS
Issue: Computers
On Monday, over 100 protesters marched in front of Microsoft sales offices
around the world to demand refunds for unopened operating systems. The
marchers are upset over a clause in the Windows license that states that
users who do not agree to the terms can receive refunds for the preinstalled
software on their personal computers. Several users, however, have reported
difficulty in obtaining such a refund from Microsoft. "People pay extra
money for software they don't need, they don't want and they're entitled to
a return," said Rick Moen, one of the protest's organizers. Microsoft's
Windows runs on over 90% of all personal computers sold in the world.
[SOURCE: New York Times (C6), AUTHOR: Amy Harmon]
http://www.nytimes.com/library/tech/99/02/biztech/articles/16windows.html
See also:
SEEKERS FOR REFUNDS FOR 'WINDOWS' WARE FIND THE DOORS SHUT
[SOURCE: Wall Street Journal (B10), AUTHOR: David Blank]
http://www.wsj.com/

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

Headlines readers now total 4,457 -- thanks for your support!

ACCESS
Ads to Pay for Free PCs (NYT)

TELEPHONE
As Phone Wars Move To Rural Towns, Tactics Are
Growing Rougher (WSJ)
Utah Ends US West Support After Favoritism Claims (WP)
Speech: A Networked Future For All Americans (FCC)
Advertisement: SBC Communications...A New Breed of
Telecommunications Company (ChiTrib)

INTERNET
Administration and Management of The .us Domain Name Space (NTIA)
A New Market For Middlemen (WP)
More States Consider Laws Restricting Junk E-Mail (CyberTimes)
Court Upholds Internet Office Ban (CyberTimes)
Lawmakers Weigh National Security Issues and the Net (CyberTimes)

EDTECH
Speech: The Ed Tech Challenge: Training Our Youth for
21st Century (NTIA)

MERGER/LOBBYING
At&T, Poised To Close Tci Takeover, Puts Pressure On
State, Local Regulators (WSJ)

JOBS
Job Opportunities: NTIA's Office of Spectrum Management (NTIA)

PHILANTHROPY
For-Giving Technology (WP)

ANTITRUST
Microsoft Official Concedes Company Sought To
Restrict Web-Browser (WSJ)

======
ACCESS
======

ADS TO PAY FOR FREE PCS
Issue: Access
Free PC? Sort of. A start-up company, One Stop Communications, offered
10,000 free PCs on Monday to Internet users willing to watch advertisements
on their computers. Yesterday, the company offered 25,000 iMacs to users who
promise to spend at least $100 a month for 36 months at an online mall run
by the company. Recipients of the free computers also must agree to use One
Stop Communications as their Internet service provider at $19.95 a month.
[So, it's a great deal if you can't afford a $1000 computer, but you can
handle $1,500 in other purchases/charges per year...]
[SOURCE: New York Times, AUTHOR: Reuters]
http://www.nytimes.com/library/tech/99/02/biztech/articles/11mac.html

=========
TELEPHONE
=========

AS PHONE WARS MOVE TO RURAL TOWNS, TACTICS ARE GROWING ROUGHER
Issue: Telephony
Phone customers in Regent (ND) who signed up with Western Wireless, a company
recently launching "fixed wireless" service in Regent to compete with the
longtime sole local provider in the region, Consolidated Telephone Cooperative,
had their phone service shut off as a result of a conflict between the two
companies, spurred by a "fuzzy law." Western Wireless hopes to set up wireless
service in small, rural towns and has converted 32 customers so far in Regent.
It's offering "fixed wireless" to overcome customer reluctance of using
wireless in their home. It is wireless that looks and is used like a
conventional phone. Western Wireless also hopes to receive federal
"universal service"
subsidies that Consolidated now receives. Consolidated's chief executive, L.
Dan Wilhelmson said, "the customer-owned cooperative was merely responding to
what it felt was Western Wireless's failure to obtain necessary permission from
state regulators, and its failure to negotiate a working agreement with
Consolidated." As part of the 1996 Telecommunications Act, Congress worried
that rural towns like Regent may be left out as big providers vie to offer
service packages and exempted rural phone carriers like Consolidated from
fostering local competition. Consolidated, a company that employs 86 local
people last year began competing with US West for phone business in Dickinson,
a town of 17,000. Before it did, it followed state law to obtain permission and
a federal law to negotiate an agreement with US West. Consolidated expected
Western Wireless to do the same, and has now re-connected Wireless customers
for the time being. When Wilhelmson consulted with lawyers, they told him "the
law is fuzzy." An earlier law exempted wireless carries form state regulation.
"Congress never foresaw fixed-wireless service more like traditional wired
service when it's used to compete locally."
[SOURCE: Wall Street Journal, Feb. 10, 1999 (A1), AUTHOR: Bryan Gruley]

UTAH ENDS US WEST SUPPORT AFTER FAVORITISM CLAIMS
Issue: Telephony
Utah governor Mike Leavitt (R) has stepped away from a proposal to
drastically deregulate US West's operation in that state. Consumer groups
alleged that Gov. Leavitt had planed to offer deregulatory incentives in
exchanges for US West's renewed sponsorship of the scandal-ridden 2002
Winter Olympics in Salt Lake City. The local Bell company has just given
city Olympic officials $5 million dollars for preparations for the 2002
games.
[SOURCE: Washington Post (E1), AUTHOR: Mike Mills]
http://www.washingtonpost.com/wp-srv/business/feed/biztop918740216732.htm

SPEECH: A NETWORKED FUTURE FOR ALL AMERICANS
Issue: Universal Service (Rural)
2/10/99 Address of FCC Chairman Kennard before the National Telephone
Cooperative Association Annual Meeting, San Antonio (TX): If our strength as
a free people and as a democratic nation is tied to our organizations and
associations, then you all, cooperatives and small, independent phone
companies alike, are pillars of our democracy. Cooperatives bring local
communities together to provide essential services and to pursue a greater
good. And both telephone cooperatives and small rural telephone companies
literally link Americans who live in the countryside into the national
community. You make it possible for all Americans, whether they live in a
small town in Maine, on a ranch in Montana, or on a farm in Missouri -- to
be part of the debate and give and take that is vital to our democracy. By
investing in your exchanges where the big companies wouldn't, you have
enabled millions of Americans to be a part of the free exchange of ideas.
[SOURCE: FCC]
http://www.fcc.gov/Speeches/Kennard/spwek907.html

ADVERTISEMENT: SBC COMMUNICATIONS...A NEW BREED OF
TELECOMMUNICATIONS COMPANY
Issue: Telephone
SBC Communications, trying to win approval from regulators to purchase
fellow phone monopolist Ameritech, is running a full page ad in the Business
section of the Chicago Tribune. "We're working with regulators now to
approve our entry into long distance and our merger with Ameritech, which
will launch our expansion into 30 new major markets across the country. At
SBC, we move fast -- fast enough to stay up with our customers." The ad also
touts the company's recent alliance with Williams Communication.
[SOURCE: Chicago Tribune (Sec 3, p.5)]
http://chicagotribune.com/

========
INTERNET
========

ADMINISTRATION AND MANAGEMENT OF THE .US DOMAIN NAME SPACE
Issue: Internet
The National Telecommunications and Information Administration (NTIA) will
hold a public meeting to explore the future administration and management of
the .us domain name space. Topics to be discussed including the current
structure of the .us domain, issues and opportunities facing the current and
future management of the .us space, current practices and issues in the
management of other country code TLDs (ccTLDs), proposals for administering
the .us domain, and a discussion on the next steps for the management and
administration of the .us domain. An electronic copy of the Federal Notice
http://www.ntia.doc.gov/ntiahome/domainname/dotusmtg.fedreg.htm that
describes the meeting and agenda in further detail is available at
http://www.ntia.doc.gov. The meeting will be held March 9, 1999 10:00am to
4:30pm at the Dept of Commerce (14th and Constitution Avenue, NW); if you
plan to attend, you should complete a pre-registration form
http://www.ntia.doc.gov/ntiahome/domainname/dotusregform.htm. For further
info contact: Karen Rose, NTIA/OIA, (202) 482-1866. Media contact: Sallianne
Fortunato, NTIA Public Affairs, at 202-482-7002
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/021099dotusmtg.htm

A NEW MARKET FOR MIDDLEMEN
Issue: E-Commerce
John Hagel III's, author of a new book, entitled "Net Worth" has a plan for
customers to take more control in the face of random advertising and privacy
issues on the Internet. Hagel says the Internet is breeding ground for
"infomediaries" that would keep customer information confidential and use it to
tailor ads to users, helping them get more from Internet retailers. "We would
rely on these agents to negotiate some benefit for us in return for that
information -- a price discount, free service or perhaps even cash," he
says. These
"informediaries" could only succeed, Hagel says, if customers trust them. The
companies would develop sophisticated software to allow customers security and
choice in how much is revealed about them. Yahoo and AOL are possible
contenders but they collect information only about users of their own services.
Websites like Intuit's Quicken.com and AutobyTel.com are cited as being
stronger contenders because they collect information about how customers use a
variety of services and retailers and present customers with choice among them.
He's skeptical of "online loyalty programs" like FreeRide Media that rewards
people for visiting certain sites. Hagel says these companies are likely to be
more loyal to advertisers.
[SOURCE: Washington Post (E1), AUTHOR: Leslie Walker]
http://www.washingtonpost.com/wp-srv/business/feed/biztop918740217812.htm

MORE STATES CONSIDER LAWS RESTRICTING JUNK E-MAIL
Issue: Internet
Several states are beginning to take the issue of spam (junk email) very
seriously. Three states have already enacted laws that make it illegal for
ISP customers to send spam if their ISP expressly forbids it. Others state
legislatures are also trying to find ways to address the problem of junk
mail without making it difficult for people to conduct authentic business
online. A fear has arisen that if laws vary state to state, legitimate
online marketing could be seriously hampered. "We would prefer a single good
federal law," said John Mozena, a board member of the Coalition Against
Unsolicited Commercial E-Mail (CAUCE), "but if we can't find a federal
solution we're going to have to work state by state."
[SOURCE: CyberTimes, AUTHOR: Jerry Clausing]
http://www.nytimes.com/library/tech/99/02/cyber/articles/11spam.html

COURT UPHOLDS INTERNET OFFICE BAN
Issue: Internet/ Content
Wednesday, a federal appeals court upheld a Virginia law that prohibits
state employees from looking at sexually explicit material on the Internet
while at work. Several college professors challenged the law, arguing that
it would effect their ability to conduct legitimate research. The court
ruled that government has the right to supervise the on-the-job activities
of its employees. "This is an enormously disappointing decision that runs
against the grain of free-speech decisions regarding the Internet," said
Kent Willis of the American Civil Liberties Union. A bill to repeal the law
is currently pending in the state Senate.
[SOURCE: New York Times, AUTHOR: Associated Press]
http://www.nytimes.com/aponline/a/AP-Internet-Porn.html

LAWMAKERS WEIGH NATIONAL SECURITY ISSUES AND THE NET
Issue: Security/Right to Gov Info
The House Commerce Committee has begun debating whether or not online
postings of unclassified, but sensitive information about potential
disasters at the nation's chemical plants should be permitted. Some
committee members fear that posting Environmental Protection Agency risk
management plans would give too much information to terrorist. Other members
argue that communities need to have this information -- which the Clean Air
Act mandated for public release -- to prepare for emergencies. "Are we
willing to forsake the health and safety of people who live near these
plants?" asked Representative Diana DeGette (D-CO). "The
benefit to the communities far outweighs the small risk," she added. Some
advocates worry that a proposal to limit the distribution of EPA data could
set a precedent for limiting the dissemination of other non-classified
government documents. Rather than taking advantage of the Internet's
democratic potential to allow citizens the ability to access public
information, these proposals view the Internet and its power to distribute
information as a threat," said Ari Schwartz, a policy analyst at the Center
for Democracy and Technology.
[SOURCE: CyberTimes, AUTHOR: Jerri Clausing]
http://www.nytimes.com/library/tech/99/02/cyber/articles/11epa.html

======
EDTECH
======

SPEECH: THE ED TECH CHALLENGE: TRAINING OUR YOUTH FOR 21ST CENTURY
Issue: EdTECH
Larry Irving spoke at the Mississippi Educational Technology Luncheon,
"Using Technology Tools to Transform Teaching and Learning," 1-27-99: When
you look at the world today, there's no doubt that technical literacy is as
important as "reading, writing, and arithmetic" to our students. New
technologies now pervade daily life. Today, some estimate that nearly 200
million people are now online worldwide -- not only for e-mail, but to shop,
listen to music, watch live video footage, or trade stocks. There are now
830 million web pages you can visit, and by 2003 there may be 8 billion.
"The Internet audience is not only growing, it is getting decidedly
mainstream," according to the Pew survey released two weeks ago. This year's
online holiday shopping is an example of that trend. It may not have been a
White Christmas, but it was certainly a "Web Christmas": consumers spent $ 8
billion on online holiday shopping this year, by some accounts - three times
the amount anticipated. But these technologies are doing more than
facilitating online shopping -- which is why it is so essential to
incorporate computer training in the school curriculum. The Internet,
wireless systems, and satellite technologies are opening new doors for
Americans. Now, those in remote areas and those at home, can take distance
education courses from universities worldwide. They can use these
technologies to brush up old skills or to learn new ones to find jobs in
newly expanding areas. Even navy officers serving on aircraft carriers can
now access courses using computers, satellite transmissions, and video
conferencing. And, if you have a computer and online access, you can explore
the thousands of job postings that are placed only on the Net, or find the
best price for a consumer good.
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/speeches/edtech12799.htm

===============
MERGER/LOBBYING
===============

AT&T, POISED TO CLOSE TCI TAKEOVER, PUTS PRESSURE ON STATE, LOCAL REGULATORS
Issue: Mergers
AT&T is rushing to close its deal with TCI and may despite having some
regulatory
obstacles still in place. "As of yesterday, AT&T still needed approval from 28
municipalities covering more than 800,000 customers in such key markets as Los
Angeles, Oakland (CA), and King County (WA), which includes Seattle." William
Lowery, an attorney with Miller & Van Eaton in San Francisco, has been working
on the deal in several CA cities and says that local authorities may impose
financial penalties if AT&T closes the deal before approval. Local Bells are
gearing up to counter AT&T bundle packages of long distance, Internet, video
and discounted local services by offering competing packages.
[SOURCE: Wall Street Journal (B6), AUTHOR: Leslie Cauley, and Rebecca
Blumenstein]

====
JOBS
====

JOB OPPORTUNITIES: NTIA'S OFFICE OF SPECTRUM MANAGEMENT
Issue: Jobs
Four new job opportunities for Telecommunication Policy Analysts and
Telecommunications Specialists have been posted by NTIA's Office of Spectrum
Management. See URL below.
[SOURCE: NTIA]
http://www.ntia.doc.gov/osmhome/jobmenu.html

===========
PHILANTHROPY
===========

FOR-GIVING TECHNOLOGY
Issue: Philanthropy
Steve Case, AOL chief executive, has made an offer that students of a DC
area high school can't refuse. Case told students of Calvin Cooligde High
School that each one who earns a 3.5 grade point average or above will
receive money toward college, a AOL employee mentor, and free SAT
preparation from Kaplan. The AOL Foundation, a nonprofit arm of the company,
will also provide the school with 30 computers and unlimited AOL online
access. Recently, both Xerox and Microsoft have donated money and supplies
to help homeless people and welfare recipients gain basic computer skills.
[SOURCE: Washington Post (E1), AUTHOR: Shannon Henry]

=========
ANTITRUST
=========

MICROSOFT OFFICIAL CONCEDES COMPANY SOUGHT TO RESTRICT WEB-BROWSER (WSJ)
Issue Antitrust
Microsoft Vice President Cameron Myhrvold conceded yesterday in the antitrust
trial against the company that Microsoft gave Internet Service firms visibility
on the "desktop screen" -- in exchange, firms agreed to restrict distribution of
Netscape's rival Web browser. Incentives were provided to firms to not inform
customers of the choice available. "You were concerned that if you presented
customers with a choice, they would pick Netscape and not Internet Explorer?"
Asked Justice Department lawyer David Boies. "Yes, that's right," replied
Myhrvold. Written testimony is expected today by Microsoft marketing chief
Mr. Chase who has told the court that AOL chose Microsoft over Netscape because
of superior technology, not because they were offered a spot in the
online-services folder of Windows desktop screen. AOL Senior Vice President
David Colburn's October testimony is contradictory. He told the court that he
chose Microsoft because of the link to Windows.
[SOURCE: Wall Street Journal (A4), AUTHOR: Keith Perine and John Wilke]

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