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IP: Ex-PBS and FCC chiefs want $18 billion new agency, WSJ says


From: David Farber <dave () farber net>
Date: Tue, 24 Jul 2001 06:00:06 -0400



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Date: Tue, 24 Jul 2001 02:22:29 -0400
To: politech () politechbot com
From: Declan McCullagh <declan () well com>

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I'm not sure why this below article is news. The Grossman-Minow duo were 
highlighted in Gary Chapman's now-discontinued LA Times column on May 5. 
Chapman reported the pair are eager to launch a new federal bureaucracy, a 
"Digital Opportunity Investment Trust, a public agency modeled on the 
National Science Foundation." It'll be paid for with $18 billion in 
spectrum auctions -- money that could have given every American family 
perhaps $100-$200 in tax rebates instead.

Chapman laments that "new developments in online business are creating a 
heightened sense of urgency because many Web-based companies are starting 
to explore 'pay-per-view' or subscription-based fees to maximize the value 
of their intellectual property."

Well, yes. Advertising is in the toilet, so companies are choosing to sell 
content as an alternative to going out of business. Salon is a perfect 
example, and plenty of news articles have described how other 
formerly-free services are trending toward pay services. This is not a 
pernicious development; in fact it has advantages. On pay services, we 
won't see as many ads.

As for this new federal agency, who needs it? There already are more 
"public spaces" on the Net than content to fill them -- I daresay Grossman 
and Minow have never been on Usenet -- and setting up a web server with a 
large hard drive is hardly expensive. If people really want content 
online, the market will respond by producing it. We don't have $18 billion 
federal book, magazine or newspaper projects, but somehow we see splendid 
writing nonetheless.

I talked about this at greater length instead of in midnight-rant form in 
my testimony last year before the Democracy Online Project:
http://www.politechbot.com/p-01184.html

-Declan

*********

WHY NOT FUND ONLINE CONTENT?
Lawrence K. Grossman, former president of PBS, and Newton Minow, former 
FCC chief, have proposed what they call a Digital Opportunity Investment 
Trust, which would be a federally chartered agency along the lines of the 
National Science Foundation or the National Institutes of Health. The goal 
would be public funding of online content, focusing on educational and 
civic uses of digital technology. The money ($18 billion), which the 
backers suggest could be taken from spectrum auction revenues, would be 
used to help build worthwhile places to visit in cyberspace: "You could 
have a virtual solar system, a 3D model of the human body or a recreation 
of Mark Twain's America," says Grossman. Minow compares his Digital 
Promise Project's approach to the 19th-century legislation that created 
land-grant colleges. "There's an opportunity to do that again," he says. 
(Wall Street Journal 23 Jul 2001)
http://interactive.wsj.com/articles/SB995840737736919399.htm


Democratizing Information
Jun. 3, 2001 07:26 ET
http://www.latimes.com/print/editorials/20010602/t000045934.html

Television, more vast than ever, turns toxic Author of famed '61 quote 
revisits the vast wasteland
May. 10, 2001 04:46 ET
http://www.usatoday.com/usatonline/20010509/3301798s.htm

Paying for Net Foils 'Public Space' Idea
May. 4, 2001 05:57 ET
http://www.latimes.com/print/techtimes/20010503/t000037177.html




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