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TOP STORIES FOR FRIDAY, MAY 30, 2003
  Microsoft and AOL Reach Truce
  Bell Companies Cooperate on Fiber-Optic Standards
  Report Says CIA Not Using IT Creatively
  Downloadable Movies That Self-Destruct
AND
  Northwestern Goes for Multicasting
  Music and Adult Content Spur European Broadband


MICROSOFT AND AOL REACH TRUCE
Rivals Microsoft and AOL Time Warner have settled their dispute over
Internet browsers. AOL is dropping its antitrust suit, filed against
Microsoft in January 2002, that alleged anticompetitive business
practices favoring Microsoft's Internet Explorer browsing software
over Netscape's software. Netscape, a subsidiary of AOL and the former
industry leader, now claims only five percent of the browser market
compared to Internet Explorer's 90 percent. Microsoft has agreed to
pay AOL $750 million and to license free-of-charge its browsing
software to AOL through 2010. In addition, AOL and Microsoft will
collaborate on new digital media initiatives and product compatibility,
including integrating their instant-messaging services. AOL, which
currently uses RealNetworks Inc.'s digital services, can also license
Microsoft's digital media and antipiracy digital rights management
technology. In addition, Microsoft will provide technical information
on its Windows operating systems and will pair AOL-branded Internet
service software with Windows on some hardware, which could expand
AOL's reach by millions. The deal issues in a new era of cooperation
between the software and media giants.
New York Times, 30 May 2003 (registration req'd)
http://www.nytimes.com/aponline/technology/AP-Microsoft-AOL.html

BELL COMPANIES COOPERATE ON FIBER-OPTIC STANDARDS
Verizon Communications, SBC Communications, and BellSouth have agreed
on technical standards for installing fiber-optic connections to homes.
Fiber-optic networks are not uncommon in corporate applications, but a
regulation requiring phone companies to share their networks has
prevented all but a small number of residential installations of fiber.
The regulation is being lifted, however, and the three largest regional
Bell companies will cooperate on offering residential access to
networks that can provide phone, data, and TV signals faster than DSL
or cable modems. A spokesman from SBC said the agreement is typical of
any maturing technology, which needs a single standard to be effective.
Wired News, 29 May 2003
http://www.wired.com/news/business/0,1367,59035,00.html

REPORT SAYS CIA NOT USING IT CREATIVELY
A report written by a member of a CIA think tank argues that the
agency's use of information technology is handicapped by a culture
that treats technology as a threat rather than a benefit. In the
report, "Failing to Keep Up With the Information Revolution," Bruce
Berkowitz writes that the agency's focus on security prevents the
CIA's Directorate of Intelligence "from applying information
technology more effectively." Berkowitz points to a CIA database, the
Corporate Information Retrieval and Storage (CIRAS) database, which the
report states is the most-used database at the CIA. Compared to systems
outside the CIA, he said, CIRAS is primitive. Because of the
shortcomings of CIRAS, CIA analysts depend largely on an informal
source network, according to Berkowitz, who characterized such an
informal network as "exactly what the World Wide Web does in an
automated fashion when it is combined with a search engine like Google
or Alta Vista."
Internet News, 29 May 2003
http://www.internetnews.com/infra/article.php/2213741

DOWNLOADABLE MOVIES THAT SELF-DESTRUCT
So-net, a subsidiary of Sony, will introduce versions of electronic
movie files that include digital rights management (DRM) software to
try to prevent unauthorized copying. The software breaks a movie file
into many pieces and saves them in various locations on a user's hard
drive. Part of the software then puts the pieces together in such a way
as to allow the movie to be played smoothly. The intent of such a
system is to prevent users from simply making copies of the movie.
Secondarily, the DRM software imbeds code into movie files that causes
them to self-destruct after a specified period of time. Even if a user
is able to assemble the pieces of the movie to make a copy, the file
will stop working automatically. So-net will test the system in Japan
soon, and Walt Disney will conduct tests of a similar program in the
United States.
ZDNet, 30 May 2003
http://zdnet.com.com/2100-1103_2-1011581.html

AND
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NORTHWESTERN GOES FOR MULTICASTING
Northwestern University will provide live, round-the-clock C-Span and
C-Span2 connection broadcasts to anyone with an Internet2 connection
through a technique called multicasting. Multicasting effectively
addresses the bandwidth challenge of simultaneously broadcasting
digital-video signals to many viewers in scattered locations. Where
traditional video broadcasting over data networks requires creating
multiple broadcast copies at the source and sending a copy to each
recipient's computer, multicasting creates only one copy at the source
and sends it over the network to be copied by the network router
closest to each viewer's computer. Multicasting requires that certain
software be installed on campus routers and Internet-backbone routers,
along with state-of-the-art hardware. Some believe that such
requirements will make the technology inaccessible to many campuses.
Chronicle of Higher Education, 30 May 2003 (sub. req'd)
http://chronicle.com/daily/2003/05/2003053001t.htm

MUSIC AND ADULT CONTENT SPUR EUROPEAN BROADBAND
A study by Nielsen/NetRatings finds that high-speed Internet access in
Europe is on the rise--up by 136 percent in the past year--fueled
primarily by appetites for pornography and music. Germany, Switzerland,
Sweden, France, and Spain have a high percentage of broadband users,
with the last two countries at 40 percent. Although the U.K. broadband
market is the fastest growing, it trails behind at 20 percent, followed
by Italy at 15 percent. The study finds that the change in how people
connect to the Internet affects how they use the Internet. Those with
faster access spend more time online and visit more Web
sites--particularly adult content and file-sharing sites--than dial-up
users. An estimated 60 percent of broadband traffic is occupied by
file-sharing activities, and experts predict these and other services
that hog bandwidth will compel broadband providers to charge extra for
downloads. And, though broadband users may protest, they should expect
new fee structures and limits on bandwidth consumption in the future.
BBC, 30 May 2003
http://news.bbc.co.uk/2/hi/technology/2947966.stm

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