Communications-related Headlines is a free daily online news
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to date on important industry developments, policy issues, and
other pertinent communications-related news events. This service
is available online at (www.benton.org/News/).
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COMMUNICATIONS-RELATED HEADLINES for MAY 15, 2000
DIGITAL DIVIDE
His Civil Rights Challenge: Equal Access to Technology (NYT)
OWNERSHIP
Divided Against Each Other, United Against the Government (NYT)
Aol-Time Warner Merger Becomes Catalyst For Debates About
Internet Content (SJM)
BROADCASTING
Political Static May Block Low-Power FM (WP)
Good Times Add Ring of Truth to TV Networks' Spring Celebration
(NYT)
INTERNET
Newspapers Bring Threat of Web Into Perspective (NYT)
Governor's Latest School Proposal: Triple Tech Funds (SJM)
Net-Based Training Goes the Distance (WP)
TELEPHONY
SBC 'Adequately Addressed' an Issue In Bid to Provide
Long-Distance Service (WSJ)
Open Meeting Agenda (FCC)
DIGITAL DIVIDE
HIS CIVIL RIGHTS CHALLENGE: EQUAL ACCESS TO TECHNOLOGY
Issue: Digital Divide
"I believe one of the main civil rights challenges of this new millennium
is
the challenge of ensuring equal access to technology," said Federal
Communications Commission Chairman William Kennard. "W. E. B. Du Bois said,
'The problem of the 20th century is the problem of the color line.' At the
dawn of this century, our challenge is preventing the color line from
determining who is online." Although the FCC is usually the referee in a
fights between "the rich and the very wealthy," Chairman Kennard is on a
mission to provide a voice for those who cannot hire Washington lobbyists.
"If you look across the nation, 94 percent of homes in America have
telephones," he said. "When you look at people living on tribal lands, the
average drops below 50 percent. And in some areas, such as the Navajo
nation, telephone service is down at 20 percent. We're not talking about
Internet access, we're talking about basic phone service. In an era of
wireless technology and satellite technology, that shouldn't exist."
During a conservative time in Washington, Chairman Kennard has championed
increased funding for the e-rate, low-power radio stations and restrictions
on local telephone companies wishing to move into the long distance market.
"I'm frustrated that oftentimes the debate focuses on winners and losers in
terms of who will make money and lose money and not what I think is most
important, which is how will something benefit the public," he said. "And
I'm frustrated that members of Congress often don't want to engage with me
on policy but have made up their minds, often after hearing from big
interests who are constituents. When I got here I thought, maybe naïvely,
that we could really grapple and engage on issues of policy. Some do, but
most don't."
[SOURCE: New York Times (A12), AUTHOR: Stephen Labaton]
(http://www.nytimes.com/yr/mo/day/news/washpol/lives-kenard.html)
See Also:
SPEECH: THE CHALLENGE TO GENERATION D: BEYOND THE COLOR LINE
FCC Chairman Bill Kennard at Howard University. His prep for the speech is
used as backdrop for article above.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/2000/spwek012.html)
OWNERSHIP
DIVIDED AGAINST EACH OTHER, UNITED AGAINST THE GOVERNMENT
Issue: Ownership
A look a the rhetorical games leading media companies play in public. In a
panel discussion organized by the New Yorker's Ken Auletta for the
magazine's 75th anniversary, representatives from Disney and Time Warner
spun their perspectives on the recent fight over transmission consent on
cable. Disney portrayed itself the underdog -- a notion that had
iVilliage's
Candace Carpenter's head in her hands -- "Disney as the underdog is such an
amazing concept," she said noting that Disney was one of the first media
giants that tried to squash her company. Harvard's Lawrence Lessig
explained
that as Internet service progressed from narrow to broadband, it would be
easier for those providing the service to favor some forms of content --
theirs -- over others. The openness that has made the Web so inviting to
new
ventures and ideas will suffer, he said. He suggested government may need
to
step in to prevent the Internet from turning out like TV. Amazingly, Joel
Klein, head of the Department of Justice's antitrust division, sees nothing
to fear -- nor reason to prevent -- in the AOL-Time Warner merger: "Who
would think in a panel of all these people, I'm the optimist?" he said.
"There is a market mechanism that is going to answer this question.
Technology is so powerful that in the next three to five years there are
going to be alternative mechanisms into the home." [The question, of
course,
is who will own those alternatives]
[SOURCE: New York Times (C4), AUTHOR: Allen Myerson]
(http://www.nytimes.com/library/tech/00/05/biztech/articles/15neco.html)
AOL-TIME WARNER MERGER BECOMES CATALYST FOR DEBATES ABOUT INTERNET CONTENT
Issue: Mergers/Ownership
The merger between America Online and Time Warner has spawned a web of
interwoven debates about who will control the next breed of Internet and
cable services that reach consumers. Some critics are concerned about the
ramifications of the merger on AOL's popular instant messaging service.
Other consumer advocates and rivals are worried about the combined
company's
control of the market for high-speed online service. Last week, two members
of the Senate Judiciary Committee's antitrust panel asked the FCC and FTC
to
look at the implications of companies using certain technology to give
consumers faster access to certain Web sites rather than others. Such
technology "can be employed to unfairly discriminate against the 'content'
of rivals," wrote Sens Mike DeWine (R-OH) and Herb Kohl (D-WI). The
companies have responded to the senators by saying it is in their best
interest to give consumers a broad choice of content regardless of who
produces it. "Both AOL and Time Warner recognize that businesses that don't
give consumer what they want will not survive," they wrote.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/065444.htm )
See Also:
TECHNOCRATS TAKE THE COLOR OUT OF CABLE TV INDUSTRY
[SOURCE: USAToday (2b), AUTHOR: David Lieberman]
(http://www.usatoday.com/usatonline/20000515/2260838s.htm)
BROADCASTING
POLITICAL STATIC MAY BLOCK LOW-POWER FM
Issue: Radio
At the beginning of this year, the Federal Communications Commission
authorized a new class of low-power FM stations with a broadcast range of a
few blocks to about four miles. Many neighborhood groups and other
nonprofit
organizations are eager to uses the new licenses as vehicles to communicate
with their communities. But even if these groups manage to get station
licenses, they night not be allowed to keep them. The National Association
of
Broadcasters, one of the most powerful and wealthy lobbying organizations
in
Washington,
has made defeating low-power a top priority. "The FCC is trying to break
the
laws of physics," said the association's president, Eddie Fritts, by
squeezing low-power stations onto an already crowded FM dial. As a result
of
NAB lobbing, the House passed a bill last month that would only allow a
small percentage of the stations to be licensed after a testing period. Now
the fight moves to the Senate. Late this month the FCC is expected to open
the window for low-power FM radio applications. Would-be low-power
broadcasters are excited by the possibilities -- if Congress doesn't halt
the process before they have a chance at starting a station. Amanda Huron
of
the Mount Pleasant Broadcasting Club in Washington DC says; "People will
listen if they know their kids will be on the radio...If they know a
tenants' rights guy is on the radio, they'll listen."
[SOURCE: Washington Post (A1), AUTHOR: Frank Ahrens]
(http://www.washingtonpost.com/wp-dyn/articles/A2125-2000May14.html)
GOOD TIMES ADD RING OF TRUTH TO TV NETWORKS' SPRING CELEBRATION
Issue: Television
Networks will unveil their new programs for next year this week. Unlike
years past, there's good news for broadcast networks because of two
factors:
1) [yes, I hate typing this] some millionaire game show has proved that a
network can still command the attention of much of the viewing audience on
a
regular basis and 2) the advertising audience is hot. And the news gets
better for the networks: the summer Olympics and an influx of political
advertising mean that networks will be able to command 15% more for
advertising spots. But the profits are not linked to better programming as
few new programs will be carried into the next season and fewer qualify as
"hits." 'Who Wants to be a Millionaire?' is expected to generate $400-600
million in *profits* for ABC next year -- that's more than most networks
make for *all* their programming. "Right now the marketplace and
'Millionaire' are providing a blanket to cover the programmers' mistakes,"
said Warren Littlefield, the longtime NBC program chief who now operates
his
own production company. The six broadcast networks as a whole set a record
this season for total advertising revenue, taking in about $16.8 billion.
[SOURCE: New York Times (C1), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/network-tv.html)
INTERNET
NEWSPAPERS BRING THREAT OF WEB INTO PERSPECTIVE
Issue: Newspapers
Newspaper executives had once viewed the Internet as a revenue-eating
dragon
that could cripple their business. That view has changed, though, as
newspapers have realized their own powerful online potential and their
strength as a medium. March numbers from Web-measurement firm Media Matrix
showed newspaper sites holding their own against general news sites. And
even Barry Diller, chairman of USA Networks, which is part owner of
Ticketmaster Online-CitySearch, told the publishers in a forum last week
that he did not think the Internet "is going to replace paper." [And who's
to question Barry?] Dot-com advertising has also been a great windfall for
newspapers, driving revenue streams to new heights. Asked about the dangers
of the Internet, William S. Morris III, chairman and chief executive of
Morris Communications and the association's outgoing chairman, said: "We
can
play that game ourselves. We've got reporters going out all over the place
getting information. We've got incredible promotional power. We've got a
fantastic relationship with our customers -- our advertisers." When asked
about the swoon in the stock price of Internet companies, he deadpanned,
"Even Internet stocks have to have earnings."
[SOURCE: New York Times (C21), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/library/tech/00/05/biztech/articles/15medi.html)
GOVERNOR'S LATEST SCHOOL PROPOSAL: TRIPLE TECH FUNDS
Issue: EdTech
According to administration sources, California Governor Gray Davis (D)
will ask
the state legislature to increase education technology spending by $400
million. If approved, the increase could bring as many as 700,000 new
computers to California's K-12 schools -- and improve the state's
students-per-computer ratio from 14.8-1 to 8-1. Despite California's
longstanding role as a leader in the technology sector, its schools have
consistently scored low on edtech investments when compared with the
national average. The proposal effectively triples Governor Davis' January
edtech budget of $200 million. The new budget would commit $500 million to
new computer hardware, $50 million to Internet access and $50 million to
teacher training. The proposal is receiving bipartisan support from state
assembly leaders, though school officials in Silicon Valley have expressed
concern that the program would not allow local administrators to allocate
the funding to non-technology needs.
[SOURCE: San Jose Mercury News, AUTHOR: Dion
Nissenbaum](http://www.mercurycenter.com/svtech/news/front/docs/govcom05150
0
.htm)
NET-BASED TRAINING GOES THE DISTANCE
Issue: Training
More and more companies are having their workers turn to the Internet for
employee training, leaving behind traditional training manuals and
corporate
classrooms, according to industry experts. "E-learning is exploding," said
Cushing Anderson, an industry analyst with International Data Corp. (IDC)
who follows more than 200 e-learning companies. Because of the great cost
and time savings offered by corporate e-learning, the market will nearly
double year after year, rising from $550 million in 1998 to $11.4 billion
in
2003, predicts an IDC report. "You reach your entire audience, and it's a
consistent message at a fraction of the cost. . . . It's cheaper, better,
faster," said Caliber CEO Chris L. Nguyen. While the bulk of Internet-based
learning is currently information technology, by 2003 that will have
changed, and most of it will be in non-IT business skills, according to the
IDC report.
[SOURCE: Washington Post (F20), AUTHOR: Sandra Evans]
(http://www.washingtonpost.com/wp-dyn/articles/A58362-2000May12.html)
TELEPHONY
SBC 'ADEQUATELY ADDRESSED' AN ISSUE IN BID TO PROVIDE LONG-DISTANCE SERVICE
Issue: Telephony
SBC could soon become the second Baby Bell to win approval to enter the
long
distance business. The Justice Department has recently said SBC
Communications has "adequately addressed" one of four concerns regarding
the
company's petition to provide long-distance service to customers in Texas.
Under the 1996 Telecommunications Act, the Baby Bell companies must first
show that their local markets are open to competition before they are given
permission to provide long-distance service. To date, only Bell Atlantic
has
won approval from the Federal Communication's Commission to provide
long-distance service in New York State. The Justice Department acts in an
advisory capacity in long-distance service petitions, but FCC makes the
ultimate decision. When SBC filed its petition in January, the Justice
Department recommended that the FCC turn down the request. But
subsequently,
SBC filed a new application that included additional information, which the
company believes demonstrates that the Texas market is open to competition.
The FCC must make a final decision by July 5.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Mark Wigfield]
(http://interactive.wsj.com/articles/SB958165556988430509.htm)
OPEN MEETING AGENDA
Issue: Telephony
The Federal Communications Commission will hold a Open Meeting on the
subject listed below on Monday, May 15, 2000, which is scheduled to
commence
at 9:30 a.m. in Room TW-C305, at 445 12th Street, S.W., Washington, D.C.
The
audio portion of the meeting will be broadcast live on the Internet via the
FCC's Internet audio broadcast page at http://www.fcc.gov/realaudio.
The agenda has one item: TITLE: 2000 Biennial Regulatory Review of Part 68
of the Commission's Rules and Regulations (CC Docket No. 99-216). SUMMARY:
The Commission will consider a Notice of Proposed Rulemaking to streamline
Part 68 technical rules and registration process.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/Public_Notices/Agenda/2000/ag0005
1
5.html)
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The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone does
not represent the tone of the original articles. Headlines are compiled by
Kevin Taglang (kevint@benton.org), Rachel Anderson (rachel@benton.org), and
Nancy Gillis (nancy@benton.org) -- we welcome your comments.
The Benton Foundation works to realize the social benefits made possible
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and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)
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