April 2002

COMMUNICATIONS-RELATED HEADLINES for April 30, 2002

INTERNET
Indian Tribes Gain Special Domain Name Suffix
Commerce Secretary Vows Scrutiny of ICANN Reforms

BROADBAND
Coalition of 38 Organizations From Across The Nation Petition FCC To
Reject AT&T Comcast Merger
Nearly Half of Canada's Net Households Go Broadband

DIGITAL DIVIDE
Dateline: 'Digital Divide' Narrowing, Says Report

INTERNET

INDIAN TRIBES GAIN SPECIAL DOMAIN NAME SUFFIX
An agreement announced by the Interior Department and the General Services
Administration (GSA) provides federally recognized American Indian tribes
with a special domain name suffix identifying them as government entities. A
tribe's domain name will include a hyphen, the letters "nsn" (for native
sovereign nation) and the .gov designation. For example, the Hopi tribes'
domain name is currently 'www.hopi.nsn.us.' Their new domain name will be
'www.hopi-nsn.gov.' The Interior Department said the special tribal
designation is a step toward providing information about American Indian
programs and agencies over the Internet.
[SOURCE: Governmenet Computer News; AUTHOR: Wilson P. Dizard III]
(http://www.gcn.com/vol1_no1/daily-updates/18521-1.html)

COMMERCE SECRETARY VOWS SCRUTINY OF ICANN REFORMS
The U.S. Commerce Department is keeping close tabs on efforts to reform
ICANN. Don Evans, Commerce Secretary, told lawmakers last week that the
department will also strive to ensure that those reforms reflect the needs
of Internet users. The Commerce Department, which has final say in many
ICANN decisions, has been sharply criticized by its overseer, the U.S. House
Energy and Commerce Committee. In a letter to Commerce Committee Chairman
W.J. "Billy" Tauzin (R-La.), Evans assured that "the department is following
the ICANN reform activities and process closely. My staff is consulting with
U.S. business and public interest groups to garner their thoughts on reform.
The Department of Commerce's primary interest continues to be the stable and
secure management of the global Internet domain system." Under its current
structure, ICANN is required to have nine board members representing the
Internet public at large. Thus far, however, ICANN has been able to seat
only five members, the remaining four members remain from a provisional
board that helped launch the organization in the late 1990s.
[SOURCE: Washington Post; AUTHOR: David McGuire]
(http://www.washingtonpost.com/wp-dyn/articles/A4283-2002Apr29.html)

BROADBAND

COALITION OF 38 ORGANIZATIONS FROM ACROSS THE NATION PETITION FCC TO REJECT
AT&T COMCAST MERGER
Thirty-eight national and state-level organizations filed a joint petition
calling on the Federal Communications Commission (FCC) to reject the AT&T
Comcast merger. According to Dr. Mark Cooper, Consumer Federation of
America's Director of Research, "A combined AT&T Comcast, the nation's
largest cable company - would have the power to continue raising prices,
limit choice in programming, dictate technology standards and network
architecture, and ignore customer service issues - all to the detriment of
consumers." Among the groups signing the petition are Media Access Project,
Consumer Fraud Watch, and the U.S. Public Interest Research Group. In a
recent press release, Dr. Cooper stated, "The 38 groups signing the petition
reflect a strong current of public opinion against excessive concentration
in the communications industries, which is shaped by the real world abuses
of market power by cable operators." Included with the petition was a
statement submitted by the coalition to the Senate Judiciary Committee, an
analysis of efforts by Comcast to gain control over emerging digital
television services, and a study demonstrating the weakness in markets
dominated by cable.
[SOURCE: Consumer Federation of America]
(http://www.consumerfed.org/petitionreleasefinal.html)

NEARLY HALF OF CANADA'S NET HOUSEHOLDS GO BROADBAND
A new report says that approximately 48 percent of all online Canadian
adults who connect from home now use digital subscriber line (DSL) services
or cable modems. This means the penetration of broadband Internet access in
Canada has doubled since 2000. Chris Ferneyhough, vice-president of
technology research at Ipsos-Reid, pointed out that "The acceptance of
broadband in Canada and the U.S. couldn't be more different. The difference
is due to a myriad of factors, including lower access prices in Canada, a
less fragmented industry relative to the U.S.A., our regulatory framework,
better and more reliable access, and extremely positive responses from
consumers to marketing campaigns." However, the researchers said that the 63
percent of Canadians who have Internet access translates to only 15.1
million people while the 55 percent of the U.S. population with Internet
access represents 114 million people. "Ultimately," said Ferneyhough, "that
is why Americans are generally going to have a lot more choice, selection
and opportunity to purchase goods and services online."
[SOURCE: Newsbytes; AUTHOR: Steven Bonisteel]
(http://www.newsbytes.com/news/02/176221.html)

DIGITAL DIVIDE

DATELINE:'DIGITAL DIVIDE' NARROWING, SAYS REPORT
The recent report "A Nation Online" by the U.S. Commerce Department suggests
the digital divide has narrowed and federal intervention may no longer be
necessary. Proposed federal budgets for 2003 do not include funding for
technology programs targeted at bridging the digital divide. In this edition
of Dateline, Carol Castiel reports on whether the digital divide is
narrowing, how to define the divide, and what steps the nation should or
should not take to ensure that the digital divide is addressed. Andy Carvin,
Senior Associate at the Benton Foundation, Larry Irving, former Assistant
Secretary of Commerce for Communications and Information, Benjamin Compaine
a Research Consultant at the Massachusetts Institute of Technology and James
L. McQuivey, a director at Forrester Research Inc., share their thoughts on
the issues.
[SOURCE: Voice of America, AUTHOR: Dateline]
(http://www.voanews.com/article.cfm?objectID=F8BD7ABA-AA76-4A5A-B81F820252A0
9241&Title=Dateline%3A%20%27Digital%20Divide%27%20Narrowing%2C%20says%20Repo
rt)
(Requires RealAudio)

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

COMMUNICATIONS-RELATED HEADLINES for April 29, 2002

INTELLECTUAL PROPERTY
Future Of Secure Digital Music Initiative Grim
Feuding Industries Reach DTV Piracy Accord

DIGITAL DIVIDE
Gates Takes Aim at Digital Divide

BROADCASTING
Canada's High Court Bans Foreign Satellite-TV Signals
Most Commercial Broadcasters Will Miss Deadline For Digital
Television

PRIVACY
EPIC Testifies at Senate Commerce Committee Hearing on Online
Personal Privacy Act

NONPROFITS
Study Helps Find Ads That Work

INTELLECTUAL PROPERTY

FUTURE OF SECURE DIGITAL MUSIC INITIATIVE GRIM
After four years working towards a goal of ending Internet music piracy, the
Secure Digital Music Initiative (SDMI) has called it quits. SDMI was
comprised of the record industry and some technology companies whose goal
was to create a secure environment where music could be safely offered
online via unbreakable code. The plans to digitally watermark audio files or
wrap them in code only SDMI compliant players could recognize was
overwhelmed by market forces. Music device makers who did not want to miss
out on consumer demand and struggles amongst the major record labels
contributed to the demise of the initiative. According to Jonathan Potter,
director of the Digital Media Association, SDMI was the Recording Industry
Association of America's attempt to "reverse physics... and it was an
attempt to use the cloak of technology to really try to impose rules on the
Internet and content owners." A new organization, the Digital Media Device
Association plans to continue the work of SDMI by developing specifications
for playing digital music on portable devices.
[SOURCE: USA Today, AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/2002/04/29/sdmi.htm)

FEUDING INDUSTRIES REACH DTV PIRACY ACCORD
Entertainment and consumer electronics industry struck an agreement late
last week on standards for preventing digital TV piracy. Executives from AOL
Time Warner, News Corp. and Panasonic/Matsushita Electric asked House
lawmakers for legislation to codify their agreement. However, there is
concern from some industry leaders that the standards could prevent
consumers from recording programs for viewing at a later time. Philips
Consumer Electronics CEO Larry Blanford called for the establishment of a
forum that would examine how standards would affect consumers' rights to
record digital works for personal use, an activity that is currently
accepted under the "fair use" laws. Said Blanford, "The process by which
decisions are being reached is not open or fair...(and is) being decided by
a few companies through secretive contractual agreements." While all parties
agree that some legislation is required, Blanford warned that it is critical
that Congress assure open and transparent negotiations. "Consumers are going
to speak," said Blanford. "There's already a fairly sizable revolt going on.
If we don't get it right, your inboxes are going to be very full."
[SOURCE: Washington Post; AUTHOR: Brian Krebs]
(http://www.washingtonpost.com/wp-dyn/articles/A49941-2002Apr25.html)

DIGITAL DIVIDE

GATES TAKES AIM AT DIGITAL DIVIDE
At the Rev. Jesse Jackson's Rainbow/PUSH Coalition conference Digital
Connections, Bill Gates promised to help usher in the digital age for people
of all economic standing. Gates, the keynote speaker, said the high-tech
industry needs to keep the cost of technology low in order to bring more
minorities on board. Said Gates, "I think the solutions here involve both
creating the demand and creating the supply." Gates stated that he wanted to
ensure that schools around the country keep up with the rapid growth of his
industry.
[SOURCE: Daily News, AUTHOR: Ron Harris (Associated Press)]
(http://www.dailynews.com/business/articles/0402/26/biz02.asp)

BROADCASTING

CANADA'S HIGH COURT BANS FOREIGN SATELLITE-TV SIGNALS
A Canadian Supreme Court ruling has removed ambiguous language that allowed
U.S. satellite-TV equipment dealers to provide services to Canadians. The
ruling states that foreign satellite-television signals are not legal in
Canada and supports efforts to promote Canadian programming. Of the more
than 700,000 Canadian homes that receive U.S. satellite signals, many are
pirating the signals. Officials in satellite, cable, film and television
industries will urge the Canadian government to stop independent dealers
from selling signal descrambling systems. Despite the ruling, many are
skeptical about how to stop satellite piracy. Richard Rex, the owner of a
satellite store in British Columbia and defendant in the Supreme Court case
said, "I don't think you can stop it. There's no place for it to go but
underground." Rex plans to challenge laws that block foreign programming,
saying, "In Canada we hold true to our hearts this thing called freedom." He
maintains that blocking foreign programming runs contrary to supporting the
free choice of Canadian citizens.
[SOURCE: The Wall Street Journal, AUTHOR: Mark Heinzl]
(http://online.wsj.com/article/0,,SB102002447981731800,00.html?mod=technolog
y_main_whats_news)
(requires subscription)

MOST COMMERCIAL BROADCASTERS WILL MISS DEADLINE FOR DIGITAL TELEVISION
A report issued last week by the General Accounting Office found that 74
percent of the commercial television stations that were supposed to be
emitting a digital signal by the May 1 regulatory deadline would be unable
to do so. The report said most of the delinquent stations had cited the high
cost of new technology. In addition to offering crisper images, reduced
interference and the prospect of viewers communicating through the set much
the way they now do on the Internet, digital broadcasting significantly
frees the airwaves for more productive use by other industries. Once digital
penetrates 85 percent of the nation's viewing market, the law requires
broadcasters to surrender their analog-spectrum licenses back to the
government to be reissued to other commercial ventures at auction. As a
result, there is concern that a long digital transition will hamstring the
economy. "Spectrum is critical for us to have economic growth," said Blair
Levin, a former top official at the Federal Communications Commission who is
a regulatory analyst at Legg Mason. "To the extent it is tied up, it
represents a huge drag on the economy."
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
(http://www.nytimes.com/2002/04/29/technology/ebusiness/29TUBE.html)
(requires registration)

PRIVACY

EPIC TESTIFIES AT SENATE COMMERCE COMMITTEE HEARING ON ONLINE PERSONAL
PRIVACY ACT
Marc Rotenberg, Executive Director for the Electronic Privacy Information
Center (EPIC), testified last week that the new privacy bill was an
"important step forward for privacy law in the United States." Rotenberg
raised concerns that, with the Internet, a piecemeal approach to forming
privacy laws has been taken. The result is a lack of public trust and
confidence in Internet privacy. This, Rotenberg stated, is "central to the
growth of electronic commerce and the online marketplace." EPIC voiced
support for the bill's distinction between Personally Identifiable
Information (PII) and Sensitive Personally Identifiable Information (SPII),
the first being an "opt-out" category for consumers and the second being an
"opt-in" category. EPIC also suggested that better research into privacy
technologies could diminish the need for further Internet privacy
legislation. The full testimony and additional information about the Act are
available at EPIC's website.
[SOURCE: EPIC]
(http://www.epic.org)

NONPROFITS

STUDY HELPS FIND ADS THAT WORK
A recent report, "Why Bad Ads Happen to Good Causes", published by
communications consultant Andy Goodman, attempts to help nonprofits develop
effective ads. Ruth Norris, a senior program manager at the David and Lucile
Packard Foundation, which provided a grant for the report said, "The
environment in which non-profit organizations compete for the public's
attention is overloaded with messages...If they don't understand their
audience and what kind of message will resonate with them, they will miss
their chance." A few of the mistakes Goodman saw in much of the non-profit
advertising were "headlines that ramble forever, reams of dense text,
layouts that give the eye no clue where to begin."
[SOURCE: San Jose Mercury News, AUTHOR: John Boudreau]
(http://www.siliconvalley.com/mld/siliconvalley/news/3159360.htm)

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

Communications-Related Headlines for April 25, 2002

DIGITAL DIVIDE
Digital-Divide Disconnect
Jackson Continues Push For Tech Diversity

BROADBAND
Bypassing the Carriers, a Burg Goes Broadband
Broadband Revolutionizing Media Distribution - Taplin
Lawmakers Move to Block Spectrum Auction

MERGERS
AOL's $50-Billion Loss Is One From the Books
FTC/DOJ Hearings on Antitrust and Intellectual Property Law and
Policy

DIGITAL DIVIDE

DIGITAL-DIVIDE DISCONNECT
[Commentary] The Bush administration's proposed 2003 budget calls for the
elimination of two critical digital-opportunity programs: the U.S.
Department of Education's Community Technology Centers Program and the U.S.
Department of Commerce's Technology Opportunities Program. Norris Dickard,
Senior Associate at the Benton Foundation, agues that these small programs
have a big impact. He cites both research and reports from the field testify
to the value of these federal efforts in helping to narrow the gap between
technology haves and have-nots. With waning private-sector investments
because of the recession and state budgets under the biggest crunch in
years, Dickard says that the need for smart public-private partnerships to
bridge the digital divide is more important than ever.
[SOURCE: EDWeek, AUTHOR: Norris Dickard (Senior Associate at the Benton
Foundation)]
(http://www.edweek.org/ew/newstory.cfm?slug=32dickard.h21)

JACKSON CONTINUES PUSH FOR TECH DIVERSITY
The Rev. Jesse Jackson, speaking at the third annual Rainbow/PUSH Silicon
Valley Project conference Wednesday, said that Silicon Valley corporate
boards are no more diverse than when his non-profit first raised the issue
three years ago. Jackson said the group's goals have ``evolved'' to issues
such as expanding opportunities for minority-owned firms to do business with
large corporations, increasing access to capital for minorities and women
and bridging the digital divide in poor communities. Though some large
corporate interests were represented at the conference, they did not discuss
the importance of diversity at their corporations or outlined company
programs that encourage diversity in hiring or supplier relationships.
[SOURCE: San Jose Mercury, AUTHOR: K. Oanh Ha]
(http://www.siliconvalley.com/mld/siliconvalley/news/3132349.htm)

BROADBAND

bypassing the Carriers, a Burg Goes Broadband
After years of waiting for the phone company (Verizon) to offer high-speed
Internet service, the local government of Cumberland, Maryland is ready to
take matters into its own hands. Cumberland, population 21,000, is facing a
quandary familiar to much of rural America: the cost of upgrading the
telephone system's wires to offer high-speed data service (DSL) is
prohibitively expensive. As a result, phone companies prefer to invest where
the population density guarantees a return on their upgrade investment. As a
result, many local governments are making the leap into providing DSL
services for their communities, in essence, going into competition with the
phone companies. Small cities and towns who have rolled out their own
broadband systems are finding themselves in legal battles with
telecommunications companies. Jim Baller, a Washington-based lawyer who
represents the American Public Power Association, an alliance of more than
2,000 community-owned utilities, sides with the local government broadband
initiatives. Says Baller, "If local governments are not free to fill some of
these gaps, what we'll see happening is what happened in the electric power
industry." Electrification, he said, took government initiative in the most
rural areas.
[SOURCE: New York Times; AUTHOR: Peter Wayner]
(http://www.nytimes.com/2002/04/25/technology/circuits/25BROA.html)

BROADBAND REVOLUTIONIZING MEDIA DISTRIBUTION - TAPLIN
Jonathan Taplin, CEO of video on demand Web site Intertainer.com, is sending
the message that broadband streaming will fundamentally change the way
people get their entertainment. Taplin says the entertainment industry is
"on the verge of a new revolution, a media of incredible richness." Taplin
cautions, however, that "media companies will do whatever it takes to
protect themselves from the broadband revolution" rather than watch their
cash cow walk out the door. Broadband turns the whole distribution and
marketing system on its head and Taplin is attempting to tap into the
possibilities. One such attempt of Intertainer.com, called Film Marketplace,
is designed for independent filmmakers to get their movies to the public and
to earn money. Taplin believes that alternative distribution models will
work for film because he sees an end to American cultural dominance. "This
dominance has been built on scarcity, which is disappearing," he said. "IT
was thought for many years that only the American market was big enough to
support the entertainment industry. All of that is about to change."
[SOURCE: Newsbytes; AUTHOR: Michael Bartlett]
(http://www.newsbytes.com/news/02/176120.html)

Lawmakers Move to Block Spectrum Auction
More than 50 influential members of Congress from both parties have
co-sponsored legislation that would block the FCC's planned auction of a
valuable swath of airwave spectrum. The legislation, spearheaded by W.J.
"Billy" Tauzin (R-La.) and John Dingell (D-Mich.) would indefinitely
postpone the auction. Tauzin spokesman Ken Johnson said that the auction was
premature. "This auction is not ready for prime time. The FCC has no
(third-generation wireless) plan in place, they have no (high-definition
television) plan in place and most importantly, they have no spectrum
management plan in place." The FCC is scheduled to begin the auction on June
19, in compliance with a congressionally mandated September 2002 deadline.
FCC Chairman Michael Powell said he would feel uncomfortable postponing the
auction unless he received a directive from Congress to do so.
[SOURCE: Washington Post ; AUTHOR: David McGuire]
(http://www.washingtonpost.com/wp-dyn/articles/A42737-2002Apr24.html)

MERGERS

AOL'S $50-BILLION LOSS IS ONE FROM THE BOOKS
Today, AOL Time Warner Inc. is expected to post the largest loss of any
company in U.S. corporate history. With a quarterly loss exceeding $50
billion, in one fell swoop the world's biggest media company will lose more
than the annual gross domestic product of some countries. The loss--which is
largely on paper and reflects new accounting rules--essentially acknowledges
that the merger between Internet giant America Online Inc. and media
conglomerate Time Warner Inc. has fallen dramatically short of expectations.
The company's shares have fallen 41% this year, partly because of the
slowdown in advertising that is hurting its properties.
[SOURCE: LA Times, AUTHOR: James Bates]
(http://www.latimes.com/business/la-042402losses.story)

FTC/DOJ HEARINGS ON ANTITRUST AND INTELLECTUAL PROPERTY LAW AND POLICY
The Federal Trade Commission and the Antitrust Division of the Department of
Justice today announced times, location, and participants for the May 2,
2002 session in their joint hearings on "Competition and Intellectual
Property Law and Policy in the Knowledge-Based Economy." This session will
explore the efficiencies and competitive concerns that patent settlements
may generate in a variety of industries and factual settings. The general
public and press are invited to attend.
[SOURCE: FTC]
(http://www.ftc.gov/opa/2002/04/iplaw3.htm)

------------------------------------------------------------------------
*Note: Due to an all staff retreat tomorrow, there will be no Headlines for
Friday April 26. Have a nice weekend. See you bright and early Monday.*

COMMUNICATIONS-RELATED HEADLINES for April 24, 2002

OWNERSHIP
The AT&T Comcast Merger: Threats to Competition, Choice, And
Democratic Discourse
Study Exposes Myth of Cross-Technology Competition In Communication
Markets
Senate Fights for Small Cable Biz

DIGITAL DIVIDE
Digital Divide Lives, Few People Care
Flash News Flash: It's Accessible

DOMAINS
ICANN Seeks Out Dot-Org Operator
Revamped ``.us'' Internet domain Goes Live Wednesday

OWNERSHIP

CONSUMER GROUP STUDY EXPOSES MYTH OF CROSS-TECHNOLOGY COMPETITION IN
COMMUNICATIONS MARKETS
A new study from the Consumer Federation of American and Consumer's Union,
"The Failure of Intermodal Competition in Cable and Communications Markets"
criticizes the FCC's claims that cross-technology competition from satellite
and DSL will be sufficient to control cable market power. Dr. Mark Cooper,
the director of research for the Consumer Federation of America has said
that, "The rhetoric does not reflect the reality, but it is being used to
justify a wide range of policies that will harm the public and drive policy
further away from meaningful competition in the video and high-speed
Internet broadband markets." Dr. Cooper also said, "The FCC's own data shows
that satellite does not have a significant or substantial effect on cable
price, quantity or quality." A PDF version of the study can be viewed online
at http://www.consumerfed.org/Intercomp.20020423.PDF.
[SOURCE: Consumer Federation of America]
(http://www.consumerfed.org/interpressfinal.html)

THE AT&T COMPACAST MERGER: THREATS TO COMPETITION, CHOICE AND DEMOCRATIC
DISCOURSE
The Center for Digital Democracy (CDD) has released a statement summarizing
the key issues CDD will raise during the Federal Communications Commission
and Department of Justice review of the AT&T Comcast merger. The CDD and
its allies are concerned that the newly merged company will hold
unprecedented market power and be a liability to the future of the Internet,
video programming and the welfare of the U.S. economy. If AT&T Comcast
controlled the "last mile" high-speed connections it would allow them to
control Internet services for millions of Americans. The CDD will also
explore whether the merged company's newly formed access to half of the
nation's households would allow it to control programming for the entire
television industry. As for the merger's impact on democracy, the CDD
maintains that the two companies have offered no clear vision for digital
communications or the public interest. This could result in public
programming being pushed to the sidelines in favor of commercial content.
[SOURCE: Center for Digital Democracy]
(http://www.democraticmedia.org/news/ATTComcastStatement.html)

SENATE FIGHTS FOR SMALL CABLE BIZ
Four months after announcing plans to combine their massive cable
operations, executives of AT&T Broadband and Comcast faced a grilling on
Capitol Hill regarding how the mega-merger will affect cable industry
competition. "We know it's good for the companies, but what does it do for
the average consumer?" said Sen. Herb Kohl (D-Wisconsin), chairman of the
Judiciary's Subcommittee on Antitrust, Business Rights and Competition. Kohl
suggested putting "meaningful conditions" on the combination to protect
consumers. AT&T's CEO, C. Michael Armstrong, defended the merger, saying it
"will not reduce competition in any particular market." Instead, he argued,
the two companies will be able to roll out services such as broadband and
cable telephony at a faster rate by drawing from each company's respective
expertise in those areas. Nonetheless, senators and an assembled group of
industry experts argued that restraints -- such as requirements to offer a
choice of ISPs on broadband networks -- are necessary to ensure that the new
AT&T Comcast doesn't squeeze out smaller players.
[SOURCE: Wired, AUTHOR: Joanna Glasner]
(http://www.wired.com/news/business/0,1367,52057,00.html)

DIGITAL DIVIDE

DIGITAL DIVIDE LIVES, FEW PEOPLE CARE
The digital divide still is very much alive, but U.S. corporations and the
federal government have unfairly abdicated their roles in helping to bring
the Internet to U.S. citizens regardless of their race or class, said former
U.S. Commerce Undersecretary Clarence "Larry" Irving. "We're a nation
online?" Irving said, noting that 60 percent of African-Americans don't have
any Internet access, nor do 70 percent of Hispanic-Americans. Speaking at
the Computers Freedom and Privacy 2002 conference in San Francisco, Irving
responded to an earlier speaker's assertion that the U.S. should view the
digital divide situation as a "glass that's half-full," Irving said, "Lady,
for the folks who don't have access, it is completely empty." Irving, who
made the digital divide a front-and-center issue for the Clinton
administration, said that the Bush administration's elimination or scaling
back of several important programs to close the divide also reveals a basic
lack of desire to make the Internet a ubiquitous tool in the U.S.
[SOURCE: Washington Post, AUTHOR: Robert MacMillan]
(http://www.washingtonpost.com/wp-dyn/articles/A12299-2002Apr18.html)

FLASH: IT'S ACCESSIBLE
Jason Smith, technical director at the American Association for the
Advancement of Science has invented a Flash captioning tool that will allow
blind and deaf Web surfers to enjoy Flash-enabled Web sites. Smith said,
"Using Flash at all, in Flash 5 made it inaccessible." The new captioning
tool will work with screen readers that translate Web information by reading
it aloud or sending it to a Braille display. Andrew Kirkpatrick, technical
project coordinator for the CPB/WBGH National Center for Accessible Media
has said the new tool makes Flash captioning practical. While Section 508 of
the Rehabilitation Act requires Web sites to be accessible to people with
disabilities, many Web designers are still playing catch up. Jamie Berke, a
deaf captioning advocate, applauded the new Flash captioning tool but also
said, "The key is the mind-set of Web video producers, who must learn to
automatically include captioning as part of their production
process...Producers have to be made aware of the existence of the tool and
encouraged to use it."
[SOURCE: Wired News, AUTHOR: Lisa Delgado]
(http://www.wired.com/news/print/0,1294,51638,00.html)

DOMAINS

ICANN SEEKS OUT DOT-ORG OPERATOR
The Internet Corporation for Assigned Names and Numbers (ICANN) today put
out a request for proposals from organizations and companies interested in
operating the dot-org domain. Several public interest groups are closely
following the search for a new dot-org operator, and some are already
raising eyebrows over ICANN's requirement that prospective operators submit
a $35,000 processing fee along with their applications, which they fear
could deter some nonprofit groups from bidding. While the dot-org domain has
traditionally served as the Internet ZIP code for nonprofit organizations,
ICANN won't give nonprofit groups special consideration in the dot-org
bidding. In its contract with ICANN, however, VeriSign agreed that if a
nonprofit group won the bid to operate dot-org, it would be awarded $5
million in seed capital to get started.
[SOURCE: Washington Post, AUTHOR: David McGuire ]
(http://www.washingtonpost.com/wp-dyn/articles/A35846-2002Apr23.html)

REVAMPED "US" INTERNET DOMAIN GOES LIVE ON WEDNESDAY
After years of restricting the ".us" domain name to be used only by local
governments, libraries and schools, U.S. citizens and businesses will now be
able to register for the ".us" domain. NeuStar Inc., will manage the domain
and is also working with the U.S. government to set up a ".kids.us" domain
that would filter out violent and pornographic material.
[SOURCE: Silicon Valley News, AUTHOR: Reuters]
(http://www.siliconvalley.com/mld/siliconvalley/news/editorial/3123810.htm)

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

COMMUNICATIONS-RELATED HEADLINES for April 23, 2002

INTERNET
China At-Home Net Head Count No. 2 In World
The Hidden Toll Of Patents On Standards
Lawmakers Say Royalty Rates Will Kill Small Webcasters
Google Runs Into Copyright Dispute

BROADCAST
TV Stations Signal A Slow Pace To Digital Broadcasts
Battle Over Media Controls Creates A Rift In Poland
Italian Leader Warns Critics On TV To Toe The Line

ANTITRUST
Gates Says States' Remedy Will Cripple Microsoft

BROADBAND
Study: Bandwidth Glut Eats Up Profits

INTERNET

CHINA AT-HOME NET HEAD COUNT NO. 2 IN WORLD
According to new data from Nielsen/NetRatings, China now has the world's
second-largest Internet population. The future growth potential in China is
staggering when one considers that only one in three Chinese homes currently
has a phone line and that the Internet penetration rate is only slightly
more than 5 percent. Currently, the U.S. has the largest Net population (166
million). Other statistics about the Chinese Internet population reveals
that the dominant user is between 16 - 34 years old, male and likely (more
than 80 percent of users over 16) to use the Net twice a week or more. The
survey also found that 53 percent of all Internet surfing in China is done
at home, followed by Internet cafes and work.
[SOURCE: Newsbytes; AUTHOR: Dick Kelsey]
(http://www.newsbytes.com/news/02/176049.html)

THE HIDDEN TOLL OF PATENTS ON STANDARDS
David Berlind offers his views on why the esoteric issues of
standards-setting are important to every consumer. The Web applications used
everyday by millions of consumers rely on protocols such as HTTP, HTML, and
TCP/IP - all of which are available freely without the encumbrance of
royalties. But, cautions Berlind, emerging applications are likely to have
protocol stacks that are not entirely royalty-free. More and more companies
are seeking patents for protocol stacks they have developed with immense
ramifications for users across the globe. Berlind envisions royalties
reaching "into your pocketbook any number of ways." For instance, IP
(Internet Protocol) patent holders may charge for applications supported at
a Web site. Or those IP owners may charge software vendors who develop
software using patented protocols. Manufacturers of hand held wireless
devices and Net-enabled game consoles may also find a hand in their pocket
if they build products capable of supporting new protocols. All these
royalties, says Berlind, will eventually be passed on to the end consumer.
Aside from an added monetary cost, however, Berlind fears that IP patents
will close the evolution of technology and concentrate too much power in the
hands of a very few. Tracking IP royalties may be cumbersome enough to
prevent many smaller companies from using (or supporting) them, thereby
making their product less competitive. IBM and Microsoft, particularly, have
the potential to 'own' the Web due to the number of crucial IP patents they
own. Says Berlind, "If the market begins to favor the patent holders'
products...the result could be what antitrust experts call a 'foreclosure on
competition.'"
[SOURCE: ZDNet; AUTHOR: David Berlind]
(http://techupdate.zdnet.com/techupdate/stories/main/0,14179,2861785,00.html
)

LAWMAKERS SAY ROYALTY RATES WILL KILL SMALL WEBCASTERS
Several lawmakers are urging the U.S. Copyright Office to reconsider a
music-royalties proposal that they say would force small Internet
broadcasters out of business. In a written statement, a bipartisan group of
20 House members said "We believe that a balanced approach for royalties
based on traditional compensation formulas can be created to ensure that
artists and recording companies receive compensation commensurate of their
services, while not penalizing the webcasting industry." If the proposal
were approved, Webcasters would have only one month to pay royalties
retroactive to 1998. Final decision on the proposal must be made before May
21.
[SOURCE: Newsbytes; AUTHOR: David McGuire]
(http://www.newsbytes.com/news/02/176056.html)

GOOGLE RUNS INTO COPYRIGHT DISPUTE
Last month, the Church of Scientology sent a complaint to Google, the
company behind the popular Web search engine, saying that its search results
for "Scientology" included links to copyrighted church material that appears
on a Web site critical of the church. Under the Digital Millennium Copyright
Act of 1998, which was intended to make it easier for copyright holders to
fight piracy, the complaint meant that Google was required to remove those
links quickly or risk being sued for contributing to copyright infringement.
As a result of the complaint, Google has created a new policy that requires
a copy of all such complaints to be sent to the Chilling Effects
Clearinghouse (chillingeffects.org), which is a project of a civil liberties
advocacy group called the Electronic Frontier Foundation and several law
schools. In the new procedure, Google informs its users when a link has been
removed from a set of search results and directs them to the Chilling
Effects site. With its Chilling Effects partnership, Google is subtly making
the point that the right to link is important to its business and to the
health of the Web, said David G. Post, a law professor at Temple University
who specializes in Internet issues. "This is an example where copyright law
is being used in conflict with free connectivity and free expression on the
Net," he said. Dr. Post said Google's situation highlighted the need for
more awareness of copyright issues, including pending legislation that is
more restrictive than the 1998 law.
[SOURCE: New York Times, AUTHOR: David F. Gallagher]
(http://www.nytimes.com/2002/04/22/technology/ebusiness/22NECO.html)

(requires registration)

BROADCAST

TV STATIONS SIGNAL A SLOW PACE TO DIGITAL BROADCASTS
A May 1 deadline is looming for the nation's commercial TV stations to start
broadcasting both digital TV (DTV) and analog signals, but two weeks out
only 15% of the stations have successfully rolled out the DTV service. John
Harris, director of special projects and programming for WRAL says, "It's
frustrating to us that it's not rolling out quicker. We see the potential
in it." Decisonmark, a consulting firm has reported that nearly
three-fourths of U.S. households get one DTV signal, but less than half get
four signals. Getting a clear DTV signal also depends on location with 41%
of stations broadcasting DTV in the nation's 10 largest markets and just 7%
in the smallest markets.
[SOURCE: USA Today, AUTHOR: Mike Snider and Anthony DeBarros]
(http://www.usatoday.com/life/cyber/tech/2002/04/23/digital-tv.htm)

BATTLE OVER MEDIA CONTROLS CREATES A RIFT IN POLAND
A new bill originally designed to govern the transition to digital
television has Polish private media companies up in arms. The reasons are
several provisions that would prohibit the owners of a national newspaper or
magazine from owning television or radio station. The heart of the conflict
is that the rules would not apply to the government. Adam Michnik, editor of
the newspaper Gazeta Wyborcza, sees the proposed rules as an attack on the
private press and fears they will give too much power to public media.
Government officials say the provisions will stop monopolistic activities
and claim Michnik's anger is the result of his own greed. President
Aleksander Kwasniewski has said he would veto the bill in its current form.
Michnik has responded to critics by saying, "There are two visions of the
state that are now clashing...The president thinks that Poland should be a
pluralistic democracy where all freedoms are observed. Bu Prime Minister
Leszek Miller is trying to make the state the property of his political
faction."
[SOURCE: The New York Times, AUTHOR: Ian Fisher]
(http://www.nytimes.com/2002/04/21/international/europe/21POLA.html)

ITALIAN LEADER WARNS CRITICS ON TV TO TOE THE LINE
In a recent news conference, Prime Minister Silvio Berlusconi accused two
journalists and a comedian critical of Berlusconi's government of "criminal
use of public television". The Prime Minister's family already controls
three of Italy's four national television stations and his government has
some control over three state-run channels. Management of the three
state-run channels has been divided amongst the political parties in the
legislature with the political opposition controlling one channel, RAI3. The
response to Berlusconi's attack on the journalists has been fierce and an
editorial printed in a paper historically friendly to the Berlusconi
government called the Mr. Berlusconi's remarks, "an error and an abuse of
power.... He who has potential influence over six television networks and a
lot of political and financial power concentrated in his hands must know how
to control himself and guarantee freedom of the press and opinion."
Berlusconi claims his comments were misunderstood but also said, "...the
center-right will guarantee that RAI will not be used as it was under
previous management, to attack the representatives of the opposition right
before the elections."
[SOURCE: New York Times, AUTHOR: Melinda Henneberger]
(http://www.nytimes.com/2002/04/21/international/europe/21ITAL.html)

ANTITRUST

GATES SAYS STATES' REMEDY WILL CRIPPLE MICROSOFT
In his first court appearance since the beginning of Microsoft's four-year
antitrust case, Chairman Bill Gates testified that the penalties proposed by
nine states would cripple Microsoft. California and eight other states are
arguing that an earlier settlement between Microsoft and the federal
government will not stop Microsoft from continuing monopolistic activities.
Gates is hoping to convince the judge that the state's proposed restrictions
are unrelated to the violations Microsoft has already been found liable for.
During his testimony Gates said, "If the Windows platform were to fragment,
the primary value it provides - the ability to provide compatibility across
a wide range of software and hardware - would be lost."
[SOURCE: San Jose Mercury News, AUTHOR: Heather Fleming Phillips]
(http://www.siliconvalley.com/mld/siliconvalley/news/editorial/3118220.htm)

BROADBAND

STUDY: BANDWIDTH GLUT EATS UP PROFITS
According to research firm TeleGeography, the data transmission market
remains unstable, with prices changing so quickly and varying so widely
across route and carriers that telecom companies have little concept of a
market price. The problem, according to TeleGeography, is that a bandwidth
glut on long-haul networks has pushed prices below cost. While the price
collapse is good news for Internet service providers, it has been disastrous
for telecom carriers. "The carriers and customers are trying to do business
in a hyper-deflationary environment. Some carriers have absolutely reached
the lowest price they can go," said Stephan Beckert, TeleGeography's
research director. TeleGeography believes that only market forces could
result in further price cuts.
[SOURCE: USA Today]
(http://www.usatoday.com/life/cyber/tech/2002/04/22/bandwith-glut.htm)

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

COMMUNICATIONS-RELATED HEADLINES FOR APRIL 22, 2002

DIGITAL DIVIDE
County High In Online Access

INTERNET
Internet Unites Kosovo Foes
Europeans Eye E-Vote Eventuality
NEC, KDDI, 2 Others Ally On Internet Consortium

DIGITAL DIVIDE

COUNTY HIGH IN ONLINE ACCESS
A new study, "eReadiness: Assessing our Digital Opportunities," has revealed
that the Annapolis, Maryland area has the most reliable and speedy Internet
connections in the state. However, Phillip Singerman, executive director of
the Technology Development Group said the study also revealed that many
small businesses, schools and homes are not taking full advantage of the
Internet. Income and education levels were closely connected to personal
computer use. Thirty-one percent of high school graduates earning less than
$50,000 a year reported having a computer at home. Ninety-one percent of
graduates earning more than $50,000 had used computers at home. The next
phase of the study will involve using the data to develop public policy
aimed at increasing use of information technology in Maryland.
[SOURCE: The Capital, AUTHOR: Noi Mahoney]
(http://www.hometownannapolis.com/cgi-bin/read/live/04_20-17/TOP)

INTERNET

INTERNET UNITES KOSOVO FOES
Years of conflict have taken their toll on the environment in Kosovo.
Environmental groups now hope to use the Internet to enable Albanian and
Serb activists to work together on solving problems such as polluted rivers,
smog and deforestation. "Most people don't know there is an environmental
problem," said Blerim Vela of the Regional Environmental Center for Central
and Eastern Europe. "So we decided there was a need for an electronic
network so that they can disseminate information about the environmental
problems." The network, called Sharri.Net, was set up in February and the
website is expected to be running by June. Funding for the network is coming
from the Norweigan Ministry of Environment and Dutch Ministry of Foreign
Affairs. The network will be housed in an office in Pristina, available to
all environmental groups.
[SOURCE: BBC News; AUTHOR: Alfred Hermida]
(http://news.bbc.co.uk/hi/english/sci/tech/newsid_1939000/1939121.stm)

EUROPEANS EYE E-VOTE EVENTUALITY
All experts are more or less of the opinion that it is too soon to
contemplate remote Internet voting on a large scale. Despite security and
integrity issues, nations across Europe are continuing forward with Internet
voting experiments. It is hoped that e-voting will provide easy access for
more voters and will encourage younger members of the population to get
involved in the democratic process. Caution, however, is the key word, and
e-voting advocates stress that security must not be compromised in the rush
to implement new systems. One of the biggest hurdles is setting uniform
standards for electronic voting. Currently, there exist a multitude of
security standards, making it difficult to launch large scale systems and
impossible to measure voting security against a benchmarked standard. Once
this hurdle is cleared, researchers hope to be able to build public
confidence in online voting. Even so, technology alone is not a panacea for
voter apathy. Jo Dungey, a policy advisor at the Local Government
Information Unit in the U.K, cautioned that "Technical changes alone will
not solve the whole problem of low turnout." Dungey feels that issues such
as lack of information, public alienation from the conventions of the
political process and media portrayals of politics all have to be examined
if e-voting is to be successful.
[SOURCE: Wired News; AUTHOR: Dermot McGrath]
(http://www.wired.com/news/politics/0,1283,51838,00.html)

NEC, KDDI, 2 OTHERS ALLY ON INTERNET CONSORTIUM
NEC Corp, has joined Japan's second-largest telecom carrier, KDDI Corp and
two other firms to create an Internet Service Provider (ISP)
"Megaconsortium" that will bring over 10 million Japanese Internet users
under one roof. Consolidation appears to be gaining momentum in Japan and
the "Megaconsortium" was spurred in part by a possible partnership between
Sony Corp and Fujitsu Ltd. Kenji Yoshiyama, head of NEC's Biglobe has said
that they are not "...making this a closed consortium, we are opening our
alliance up to interested parties." The new consortium will result in four
main ISP providers including the NEC-led consortium, the possible
Sony-Fujitsu partnership, Nippon Telegraph and Telephone Corp (NTT) and a
high-speed service run by Softbank Corp and Yahoo Japan Corp.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.siliconvalley.com/mld/siliconvalley/news/3114798.htm)

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

Communications-Related Headlines for April 19, 2002

DIGITAL DIVIDE
Larry Irving: Digital Divide Lives, Few People Care
World Bank approves $50 million To Improve Egypt's Higher Education

INTERNET
Internet Cafes' Phone Service Fills Void
Google to Kill Links to German Site That Gives Instructions on Sabotage
Group: Free Vietnam's Web Critics

BROADBAND
DSL Growth In U.S. Falls Behind Asia-Pacific, Europe

WIRELESS
Iwireless World: Voice Still King of Wireless Sector

PRIVACY
Hollings Pulls Together Net PRivacy Bill
EU Parliament Panel Rejects Restrictions on Use of Cookies

GOVERNMENT
Commerce Secretary Suggest Postponing Spectrum Auctions
Ensuring Content Protection in the Digital Age

DIGITAL DIVIDE

LARRY IRVING: DIGITAL DIVIDE LIVES, FEW PEOPLE CARE
According to former U.S. Commerce Undersecretary Clarence "Larry" Irving,
the federal government and U.S. corporations have abdicated their roles in
bringing the Internet to U.S. citizens. Irving, speaking at the Computers
Freedom and Privacy 2002 conference in San Francisco, said that the current
administration's scaling back of several important programs reveals a lack
of desire to make the Internet a ubiquitous tool in the U.S. "It's one thing
to say that there is a job that should be done and the government shouldn't
do it," said Irving. "It's another to say that...the divide is solved."
While Irving believes that government and corporate need to realize their
role in bridging the divide, he admits that there is no compelling interest
for either group. Corporations are busy serving shareholder interests and
the government is consumed with financing the ongoing war on terrorism. In
response to another conference speaker's assertion that the U.S. should
consider the digital divide as a "glass that's half-full," Irving said,
"Lady, for the folks who don't have access, it is completely empty."
[SOURCE: Newsbytes; AUTHOR: Robert MacMillan]
(http://www.newsbytes.com/news/02/176000.html)

WORLD BANK APPROVES $50 MILLION TO IMPROVE EGYPT'S HIGHER EDUCATION
As part of an economic restructuring, Egypt will accept a $50 million loan
from The World Bank to support Egypt's Higher Education Enhancement Project.
The funds will support 11 of 25 education reform projects Egypt is hoping
will increase the quality of the higher education systems and bridge a
growing digital divide.
[SOURCE: Mena Report]
(http://www.menareport.com/story/TheNews.php3?action=story&sid=209648&lang=e
&dir=mena)

INTERNET

INTERNET CAFES' PHONE SERVICE FILLS A VOID
In Latin America and other developing areas, Internet cafes have become the
modern equivalent of the telephone booth. Hondurans, for instance, flock to
Internet cafes to make phone calls that are significantly cheaper than those
made through long-distance telephone providers. In a country where phone
lines are hard to come by, Internet phone service is a lifeline. The story
of Honduras offers an interesting perspective: while the country is falling
behind in adopting older technologies, it is at the leading edge of newer
technologies. "The technology is increasingly empowering people with the
ability to go around the limitations and restrictions of the traditional
telecommunications networks to communicate on a global scale," said William
Drake, visiting senior fellow at the Center for International Development
and Conflict Management at the University of Maryland. According to
forecasts by IDC Corporation, nearly half of cross-border voice traffic will
be carried through Internet services by the year 2006.
[SOURCE: Newsbytes; AUTHOR: Ariana Eunjung Cha]
http://www.newsbytes.com/news/02/175972.html

GOOGLE TO KILL LINKS TO GERMAN SITE THAT GIVES INSTRUCTIONS ON SABOTOGE
At the request of Deutsche Bahn AG, Google has agreed to block links to
information that is illegal in Germany. Over the next few days Google will
block any links to instructions previously published in a banned
magazine,Radikal , describing how to destroy trains and railway equipment.
Search company Alta Vista has also agreed to block the links, but Yahoo has
yet to respond. Christian Schreyer, head of Deutsche Bahn's legal department
for media believes that leftist activists used the information to destroy
railway generators and electrical wires last year while protesting nuclear
waste transport.
[SOURCE: The Wall Street Journal, AUTHOR: Elizabeth Souder]
(http://online.wsj.com/article/0,,SB1019139053369289560,00.html?mod=new%5Fme
dia%5Fprimary%5Fhs)
(Requires subscription)

GROUP: FREE VIETNAM'S WEB CRITICS
Reporters Without Borders, a free speech advocacy group is calling for the
release of three Vietnamese dissidents who posted articles critical of the
current regime. Son Hong Pham, a doctor and sales rep was arrested after
publishing an article called "What is Democracy?" Two other Web dissidents
were arrested for similar activities. While the three men are not
reporters, the Committee to Protect Journalists has also protested the
arrests. They say the men acted as independent reporters in a country where
government controls the media and the nation's six ISPs. In Vietnam, there
are an estimated 150,000 online subscribers out of a total population of 78
million. Nguyen Than Psam, the chairman of the California Vietnam Human
Rights Network said, "You can criticize the government in the street or in
their face, but not online. They don't want you to use mass communication
and influence a lot of people because then they say it's a threat to
national security."
[SOURCE: Wired News, AUTHOR: Julia Scheeres]
(http://www.wired.com/news/business/0,1367,51960,00.html)

BROADBAND

DSL GROWTH IN U.S. FALLS BEHIND ASIA-PACIFIC, EUROPE
Analysts tracking world DSL growth say that U.S. hookups to DSL are lagging
behind the rest of the world thanks to the baby Bells' firm grip on the
market and the government's failure to encourage broadband development. In
just one year, the U.S. has fallen from 5th to 10th place in terms of DSL
connections per 100 people. In the same period, Asia-Pacific and Europe
recorded much faster gains, according to the DSL Worldwide Retail Directory
published by Point Topic Ltd. this week. Fast growth in other countries has
been spurred through government involvement, said Point Topic publisher Tim
Johnson. In the U.S., however, DSL growth has slowed down, in part due to
lax enforcement of the open competition required by the Telecommunications
Act of 1996. Johnson said another factor may be that "the new government
seems to be very big-company-friendly, so that the attitude is 'let the
incumbents do what they want.'"
[SOURCE: Newsbytes; AUTHOR: Dick Kelsey]

WIRELESS

IWIRELESS WORLD: VOICE STILL KING OF WIRELESS SECTOR
The consensus of a panel at the iWireless World trade show was that voice
will be the only application drawing in large investments. Discussion
moderator Rajeev Chand of Rutberg & Co. said that while many venture
capitalists agree that wireless is a great idea, "It is a great way to lose
a lot of money, quickly." Panel participants discussed many possible
applications for wireless, but did not agree on what future path wireless
applications would take. They did, however, agree that it is difficult to
separate the myth, hype and reality about wireless. Careful assessment of
consumer desires and a close eye on technology development are two keys for
wireless investment in the near future.
[SOURCE: Newsbytes; AUTHOR: Michael Bartlett]
(http://www.newsbytes.com/news/02/175999.html)

PRIVACY

HOLLINGS PULLS TOGETHER NET PRIVACY BILL
Senator Ernst "Fritz" Hollings (D-S.C.) on Thursday introduced an online
privacy bill that would force companies to obtain explicit permission from
individuals beforecollecting and sharing information about them. The
proposed bill divides personal information into two camps: sensitive and
nonsensitive information. To collect sensitive information (such as
financial, medical, ethnic affiliation, or religious affiliation) companies
would be required to offer "opt-in" options to individuals. Nonsensitive
information, on the other hand, could be collected as long as the company
provides an "opt-out" option to individuals. Most importantly, the bill
includes liability provisions for companies that violate online privacy
laws. The U.S. Chamber of Commerce does not believe that inclusion of such
provisions will ensure privacy protection, saying that instead of
protecting, the bill would hinder online commerce and open the door to
countless class-action lawsuits.
[SOURCE: CNET News; AUTHOR: Gwendolyn Mariano]
(http://news.com.com/2100-1023-886679.html)

EU PARLIAMENT PANEL REJECTS RESTRICTIONS ON USE OF 'COOKIES'
A European Union parliamentary committee struck down a proposal that would
have forced online retailers to gain prior consent from consumers for the
use of cookies before logging onto their sites. Cookies, which keep track of
user names, passwords, language preferences and other data, allow Web sites
to identify users and to provide customized pages. European governments
feared site operators would use cookies to acquire credit card information
and addresses from users without their knowledge. The parliamentary
committee, however, agreed with businesses that the new rule would have made
it more cumbersome for consumers to make online purchases.
[SOURCE: Wall Street Journal; AUTHOR: Matthew Newman]
(http://online.wsj.com/article/0,,SB1019210632715679720,00.html?mod=europe%5
Ftechnology%5Fprimary%5Fhs)

GOVERNMENT

COMMERCE SECRETARY SUGGESTS POSTPONING SPECTRUM AUCTIONS Auctions of the
Upper and Lower 700MHz bands had been scheduled for June 19, 2002. In a
letter to Federal Communications Commission Chairman Michael Powell,
Commerce Secretary Donald L. Evans wrote, "too much uncertainty remains to
move forward with the auctioning of this spectrum." He goes on to urge that
the Commission postpone the auction of Upper and Lower 700MHz bands saying
to move forward would, "be premature and contrary to public interest." The
Administration has proposed postponing the auctions of upper 700MHz bands
until 2004, and for lower 700MHz bands until 2006.
[SOURCE: National Telecommunications and Information Administration, AUTHOR:
Don L. Evans]
(http://www.ntia.doc.gov/ntiahome/fccfilings/2002/700auction_41702.htm)

ENSURING CONTENT PROTECTION IN THE DIGITAL AGE
The House Subcommittee on Telecommunications and the Internet will hold a
hearing on April 25, 12:30pm in room 2123 of the Rayburn House Office
Building. The hearing, Ensuring Content Protection in the Digital Age, will
also be broadcast via Internet.
[SOURCE: The Committee on Energy and Commerce]
(http://energycommerce.house.gov/107/hearings/04252002Hearing542/hearing.htm
)

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

COMMUNICATIONS-RELATED HEADLINES for April 17, 2002

INTERNET
'Virtual' Child Pornography Ban Overturned
Without Congress' Help, Internet Radio Will Wither [Editorial]

ANTITRUST
Microsoft Witness Says State Antitrust Penalties Would Help
Competitors, Not Consumers

OWNERSHIP
A Deal Against Digital Piracy Hardware Makers, Studios In Accord
Media Access Project: Newspaper Broadcast Rule Supplemental Filing

TELECOMMUNICATIONS
A Connect Call From Algeria

INTERNET

'VIRTUAL' CHILD PORNOGRAPHY BAN OVERTURNED
The Supreme Court struck down provisions of the Child Pornography Act of
1996 that make it a crime to create, distribute or possess "virtual" child
pornography. Six justices agreed that the law violated the First Amendment
and Justice Kennedy wrote that," the statute prohibits the visual depiction
of an idea - that of teenagers engaging in sexual activity - that is a fact
of modern society and has been a theme in art and literature throughout the
ages." Attorney General John Ashcroft stated that the ruling would make it
"immeasurably more difficult" to prosecute child pornography. The Supreme
Court majority concern was that the law was too broad and could potentially
inhibit artistic and literary expression. In writing for the majority
Justice Kennedy also stated, "The right to think is the beginning of
freedom, and speech must be protected from the government because speech is
the beginning of thought."
[SOURCE: New York Times, AUTHOR: Linda Greenhouse]
(http://www.nytimes.com/2002/04/17/national/17PORN.html)
(Requires subscription)

See also: Law Aimed At 'Virtual' Child Porn Overturned
[SOURCE: Washington Post, AUTHOR: Charles Lane]
(http://www.washingtonpost.com/wp-dyn/articles/A62639-2002Apr16.html)

WITHOUT CONGRESS' HELP INTERNET RADIO WILL WITHER
[Editorial] According to the San Jose Mercury News editorial staff, the
proposed performance royalty that Webcasters will need to pay recording
companies and artists will result in many Internet radio stations closing up
shop. Broadcast radio stations have avoided paying a performance royalty on
the theory that hearing songs on the radio drives CD sales. The Recording
Industry Association of America (RIAA) has convinced Congress that Internet
radio stations should pay a performance royalty in addition to the standard
royalty paid to the artist. The RIAA points to the danger of piracy when in
fact Web streaming degrades the quality of a recording and piracy of
streaming files has not been an issue. An arbitration panel has proposed a
.14-cent per listener per song royalty for Internet-only radio stations that
is in some cases 100 times the royalty currently paid to songwriters. The
U.S. Copyright Office will respond to the recommendation next month.
[SOURCE: San Jose Mercury News, AUTHOR: SJM Editorial Staff]
(http://www.siliconvalley.com/mld/siliconvalley/business/columnists/3078109.
htm)

ANTITRUST

MICROSOFT WITNESS SAYS STATE ANTITRUST PENALTIES WOULD HELP COMPETITORS, NOT
CONSUMERS
Kevin Murphy, a University of Chicago economist testified that the antitrust
penalties proposed by nine states would not benefit consumers. Murphy
supported the original settlement between Microsoft and the federal
government saying, "The proposed settlement focuses on enjoining
anticompetitive conduct and allowing market forces to determine the
competitive threats to Windows." Another defense witness, W.J. "Jerry"
Sanders, chairman of Advanced Micro Devices Inc., testified that the
widespread use of the Window's operating system allowed for free innovation
and the penalties proposed by the nine states would set the computer
industry back twenty years. According to Sanders, Gates asked him to testify
and told him the state proposals would fragment the computer industry. In
the course of testifying, Sanders admitted he had not read the state
penalties or the federal settlement and was testifying on the basis of his
conversation with Bill Gates.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.siliconvalley.com/mld/siliconvalley/news/editorial/3081362.htm)

OWNERSHIP

A DEAL AGAINST DIGITAL PIRACY HARDWARE MAKERS, STUDIOS IN ACCORD
A preliminary agreement was reached on Tuesday relating to copy protection
for high-definition broadcasts and digital TV sets. The High Definition
Multimedia Interface (HDMI) will carry full-bandwidth digital video and
audio from set-top boxes to TV sets. This agreement is just one of many
that will need to be negotiated between electronics manufacturers and
Hollywood. Supporters of the HDMI standard include Fox and Universal
studios, as well as DirecTV, EchoStar, Hitachi, Phillips, Thompson, Toshiba,
Matsushita (Panasonic) and Sony. Panasonic's Peter Fannon said the agreement
is "a good step forward", but many issues "still have to be worked out."
[SOURCE: USA Today, AUTHOR: Mike Snider]
(http://www.usatoday.com/usatonline/20020417/4034233s.htm)

MEDIA ACCESS PROJECT: NEWSPAPER BROADCAST RULE SUPPLEMENTAL FILING
In September 2001, the Federal Communications Commission released a Notice
of Proposed Rule Making seeking comment "on the appropriateness of either
retaining or eliminating entirely our newspaper/broadcast cross-ownership
rule". This report by University of Colorado Associate Professor Andrew
Calabrese critiques the quality of the Belo and Media General studies in
answering the question: Are viewpoint diversity and economic competition
positively or negatively affected at the local level by newspaper /broadcast
cross-ownership? Calabrese concludes that the studies do not sufficiently
respond to the question and he offers a set of observations and
recommendations on media cross-ownership, including viewpoint diversity.
[SOURCE: Media Access Project, AUTHOR: Andrew Calabrese]
(http://www.mediaaccess.org/filings/calabreseFCCfiling.pdf)

TELECOMMUNICATIONS

A CONNECT CALL FROM ALGERIA
Algerian ambassador Idriss Jazairy encouraged a group of Northern Virginia
telecommunications and technology firms to invest in Africa's second-largest
country saying, "You'd be surprised to see the amount of opportunities that
are there." He went on to say the banking and insurance industries are
modernizing, the government is offering exemptions on taxes and customs, and
the regulatory and legal environment is liberalizing. On average, there are
5.7 phone lines for every 1,000 people in Algeria, 20,000 Internet
connections, and a total of 100,000 cell phone users. Rudy L. Baca, an
analyst from the Precursor Group said that instability in the international
telecommunications market has created a "... great, great reluctance of
U.S. markets to look at the overseas markets." However, some companies such
as BCE Teleglobe, Inc. are looking at developing countries. Roger Wu, sales
executive with BCE Teleglobe said, "We want to work with companies looking
to get into countries like Algeria...Everyone talks about bandwidth excess
[here]. As far as other regions are concerned there is not enough capacity
on the international side."
[SOURCE: The Washington Post, AUTHOR: Yuki Noguchi]
(http://www.washingtonpost.com/wp-dyn/articles/A62747-2002Apr16.htm)

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

COMMUNICATIONS-RELATED HEADLINES for April 16, 2002

INTERNET
Consumers Trust in Online Content 'Alarmingly Low'
Almost Half of World's DSL Users in Asia-Pacific
Pending Minnesota Privacy Law Would Curb Internet Disclosures
How to Fix the Dot-Government

TELEVISION
Entrepreneur Aims to Sell Total.TV, Undercutting Costs of
Digital-Cable
Crisis Deepens Impact of Arab TV News
Youngsters Targeted by Digital Bullies

INTERNET

CONSUMERS TRUST IN ONLINE CONTENT 'ALARMINGLY LOW'
Consumer Web Watch, a new project of the Consumers Union, has issued a
report on online consumer attitudes. According to the study, only 29 percent
of those surveyed said they trust Web sites that sell goods and services.
An interesting finding of the report is that more people are shopping on the
Web, but most do not hold a high opinion of how the process works. "As those
two trends progress, we've seen from our research that trust in e-commerce
sites and sites that provide advice for consumers about what to buy is
alarmingly low," said Beau Brendler, director Consumer Web Watch. The survey
respondents have high standards, with 80 percent saying that it is "very
important" that they are able to trust information on a site, and the same
proportion believe the site must be easy to use.
Hoping to improve Web credibility, Consumer Web Watch has set five
guidelines based on the findings of the current report. The guidelines
suggest clear disclosure of transaction costs, fees and privacy policies.
Additionally, sites should distinguish between ads, news and information,
clearly identify paid and non-paid search results and disclose all business
relationships.
[SOURCE: Newsbytes, AUTHOR: Dick Kelsey]
(http://www.newsbytes.com/news/02/175894.html)
The full report may be found at Consumer Web Watch
(http://www.consumerwebwatch.org)

ALMOST HALF OF WORLD'S DSL USERS IN ASIA-PACIFIC
According to industry analysts RHK, nearly one-half of the world's DSL
connections and more than 7.5 million DSL subscribers reside in the
Asia-Pacific region. The report highlights South Korea as a hotbed of DSL
activity, with four million subscribers at the end of 2001. RHK says the
trend is being repeated in Japan and other Asian countries (including China
and Taiwan) are expected to follow quickly. "Just three yease ago, Asian
service providers were visiting North America to learn how to deploy DSL and
what services to offer," RHK's Ken Twist said in a release. "Times have
changed; this region now accounts for approximately 44 percent of the
world's DSL subscribers."
[SOURCE: Newsbytes, AUTHOR: Adam Creed]
(http://www.newsbytes.com/news/02/175904.html)

PENDING MINNESOTA PRIVACY LAW WOULD CURB INTERNET DISCLOSURES
Minnesota legislators are close to approving a bill that would regulate how
Internet service providers collect and sell users' personal information.
While this has not been common practice in the past, it could become more
widespread as ISPs such as America Online look for new revenue sources. AOL
currently sells marketers access to the name and addresses of subscribers
and shares customer lists with other AOL Time Warner companies. Marc
Rotenberg, executive director of the Electronic Privacy Information Center,
believes that ISPs should follow the same rules as telephone companies who
are prohibited from reselling customer information. Yahoo Inc. recently
changed its privacy policy and made plans to sell customer lists unless
instructed otherwise. This concerned Minnesota lawmakers who want to stop a
continuing trend in disclosing user information. State Senator Steve Kelley
says the bill is intended to "prevent ISPs from disclosing personally
identifiable information to third parties without the customer's consent."
Governor Jesse Ventura has not indicated whether he will sign the bill.
[SOURCE: The Wall Street Journal, AUTHOR: Russell Gold]
(http://online.wsj.com/article/0,,SB1018906958383354560,00.html?mod=technolo
gy_main_whats_news)
(Requires subscription)

TELEVISION

HOW TO FIX THE DOT-GOVERNMENT
The first chief technology officer for the Office of Management and Budget,
Norman Lorentz, gave a speech last week at the InfoWorld CTO Forum. The
former CTO of the Postal Service, Lorentz stated, "Government truly can be
transformed using the same approaches that we take in the private sector."
Over the next two years, he is charged with designing new ways to connect
the 22,000 federal Web sites to companies such as Travelocity to handle
government travel or Monster.gov for federal recruitment. When asked about
the privacy and security issue of letting third-party sources handle
sensitive federal information, Lorentz suggested that some ventures could be
designed with both private and public components.
[SOURCE: Wired News, AUTHOR: Farhad Manjoo]
(http://www.wired.com/news/print/0,1294,51782,00.html)

ENTREPRENEUR AIMS TO SELL TOTAL.TV, UNDERCUTTING COSTS OF DIGITAL-CABLE
The co-founder of WebTV networks, Phil Goldman, is looking to offer a new
package of TV channels that would be delivered without satellite or cable
connections. The low-cost television service would dispense with the
current generation of set-top boxes and deliver programming through TV
antennae. Goldman faces substantial hurdles, including raising billions of
dollars to purchase all the government-controlled airwaves that will be
coming up for auction in mid-June. He has met with the Federal
Communications Commission to discuss delaying the auction and changing some
rules that would enable Total.TV to compete. In addition to the financial
hurdles of obtaining the spectrum, Goldman will be competing with many
wireless companies who are seeking airwave licenses.
[SOURCE: The Wall Street Journal, AUTHOR: Rebecca Buckman]
(http://online.wsj.com/article_print/0,4287,SB1018904605631589800,00.html)
(Requires subscription)

CRISIS DEEPENS IMPACT OF ARAB NEWS
An unprecedented level of media coverage by private satellite and state-run
national networks is bringing images of the Israeli offensive live into the
homes of Arabs. "There is a constant flow of information now, all from the
same perspective," said Hussein Y. Amin, an expert in Arab media at Cairo's
American University. "It is on the national media, the local media, and the
satellite media. Every second there is a new report, and there is only one
message: solidarity with the Palestinians." Media analysts say that the
coverage has had a major impact on feeding Arab anger at Israel and its
supporters and that non-stop news coverage by private satellite channels
such as Al Jazeera, has resulted in many state-controlled networks feeling
they must follow suit or lose viewers.
[SOURCE: The New York Times, AUTHOR: Tim Golden]
(http://www.nytimes.com/2002/04/16/international/middleeast/16TELE.html)
(Requires subscription)

YOUNGSTERS TARGETED BY DIGITAL BULLIES
Research commissioned by British children's charity NCH reveals that a
distressing number of youngsters have been threatened via their computers of
mobile phones. Of the teenagers surveyed, 16% had received bullying or
threatening text messages, 7% had been harassed in Internet chat rooms and
4% percent by e-mail. Carrie Herbert, a representative of the Red Balloon
School, which specializes in dealing with bullied children, said that
electronic bullying is even more intrusive than the more conventional kind.
"Children who are being bulied in the classroom, in the playground can at
least get some sanctuary at home. With this kind of bullying the text
messaging can come up while you are watching television, while you are
having a family meal," she said. In response, NCH has a list of tips to
prevent and stop electronic harassment for children and adults. NCH hopes to
provide guidance to parents and teachers to deal with electronic bullying at
school where the problem seems to be strongest.
[SOURCE: BBC News]
(http://news.bbc.co.uk/hi/english/uk/newsid_1929000/1929944.stm)

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

COMMUNICATIONS-RELATED HEADLINES for April 15, 2002

INTERNET
State Officials Optimistic About E-Government
Mobile Service Lets Bird-Watchers Send News of Sightings in Real
Time
European Parliament Rejects Internet Blocking
Filtering Out Terrorists?

BROADBAND
'Off-the-Scale' Fiber Glut Rocks Telecom Industry

DIGITAL DIVIDE
Small Towns Build Their Own High-Speed Internet Systems

INTERNET

STATE OFFICIALS OPTIMISTIC ABOUT E-GOVERNMENT
A survey conducted at the National Association of State Chief Information
Officers' mid-year meeting revealed wide-ranging opinions concerning future
investment in e-government. For government-to-citizen e-government
solutions, 40% of the respondents thought spending would increase next year,
24% said it would decrease and 36% said spending would remain the same. In
answering a question about spending for government-to-employee e-government
solutions, 46% said spending would increase, 12% said decrease, and 42%
believe it will stay the same. When asked about government-to-business
solutions, 54% said spending would remain unchanged, 38% said spending would
increase, and 8% said it would decrease.
[SOURCE: Federal Computer Week, AUTHOR: Dibya Sarkar]
http://www.usatoday.com/life/cyber/tech/fcw1.htm

MOBILE SERVICE LETS BIRD-WATCHERS SEND NEWS OF SIGHTINGS IN REALTIME
A development manager with Hewlett-Packard's mobile services unit, HP
Bazaar, recently launched the Bird Observation System (BOS), a messaging
service that allows bird-watchers to pinpoint the location of a bird and
send the location via a short text message to all other bird-watchers
subscribing to the service. While this could be of tremendous value to
birdwatchers, it is also attractive to wireless services providers as a way
to generate messaging traffic without the cost of creating content.
"Operators are looking for hundreds of services like this to drive ARPU
[average revenue per user]," said venture capitalist Jean Schmitt, who heads
the mobile-services team at Paris-based Sofinnova Partners. "This is a
perfect example of the kind of niche services that operators are looking
for."
[SOURCE: Wall Street Journal, AUTHOR: Greg Keller]
(http://online.wsj.com/article/0,,SB1018811251207029480,00.html?mod=world%5F
news%5Ffeatured%5Farticles)
(Requires Subscription)

EUROPEAN PARLIAMENT REJECTS INTERNET BLOCKING
In a 460-0 vote, the European Parliament last week voted against blocking
(or filtering) as a way to regulate adult content on the Web. Stating that
blocking access is neither effective nor practical, the Parliament instead
called on EU countries to set up hotlines for reporting illegal or harmful
Internet content and asked that the Internet industry develop filter and
rating systems for digital broadcasting.
[SOURCE: Europemedia]
(http://www.europemedia.net/shownews.asp?ArticleID=9983)

FILTERING OUT TERRORISTS?
Internet cafes, a convenience to many, are also potentially attractive to
some criminals. With recent terrorist events, many countries are talking
about regulating Internet access at cybercafes. Key-logging software, for
example, keeps track of what is typed into a public terminal and other
software can monitor where a user goes. Another security measure discussed
is the use of closed-circuit television cameras to record everyone entering
a cybercafe. But such measures go against the principles of countries where
personal freedom and privacy are cherished. Additionally, opponents of
cybercafe regulation point out that it would be extremely difficult to
regulate what is essentially a global cottage industry. Net caf