Silicon Times Report The Original Independent OnLine Magazine" (Since 1987) August 09, 1996 No.1232 Silicon Times Report International OnLine Magazine Post Office Box 6672 Jacksonville, Florida 32221-6155 STR Electronic Publishing Inc. A subsidiary of STR Worldwide CompNews Inc. R.F. Mariano, Editor Featured in ITCNet's ITC_STREPORT Echo Voice: 1-904-292-9222 10am-5pm EST STReport WebSite http://www.streport.com STR Publishing Support BBS THE BOUNTY INTERNATIONAL BBS Featuring: * 5.0GB * of File Libraries Mustang Software's WILDCAT! 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WEB SITE: http//www.streport.com CIS ~ PRODIGY ~ DELPHI ~ GENIE ~ BIX ~ FIDO ~ ITC ~ NEST ~ EURONET ~ CIX ~ USENET USPOLNET CLEVELAND FREE-NET ~ INTERNET ~ PROWL ~ FNET ~ AOL IMPORTANT NOTICE STReport, with its policy of not accepting any input relative to content from paid advertisers, has over the years developed the reputation of "saying it like it really is". When it comes to our editorials, product evaluations, reviews and over-views, we shall always keep our readers interests first and foremost. With the user in mind, STReport further pledges to maintain the reader confidence that has been developed over the years and to continue "living up to such". All we ask is that our readers make certain the manufacturers, publishers etc., know exactly where the information about their products appeared. In closing, we shall arduously endeavor to meet and further develop the high standards of straight forwardness our readers have come to expect in each and every issue. The Publisher, Staff & Editors Florida Lotto - LottoMan v1.35 Results: 8/3/96: 3 of 6 numbers, no matches From the Editor's Desk... The Olympics are over and so is the era of folks believing the FBI is infallible. The manner in which the investigation in Atlanta has been conducted is something of a spectacle that's just shy of a Max Sennett film short. Its sad to see. However, it is reality. Now, the Feebs can go about their business normally. Instead of being considered the immediate solution of all problems. On another front, the matter of truth in advertising is creating quite a flap among observers in many fields. Especially the advertising fields. They, the ad creators, had better pay attention. After all the Pepsico thing is bound to set some very startling precedents. Since when is it ok to spoof the public to sell a product? The Harrier Jet thing is merely the tip of the iceberg. Advertising agencies have, along with various corporate executives who're specifically involved, been taking some very liberal and dangerous liberties in presenting their advertising. Its time the nation's courts became involved before it all reverts back to the snake oil sales of days gone by. Its bad enough that the promotional and marketing gurus are allowed to colorize our fresh produce to make it more enticing but to outright lie in a commercial is a bit much. Pepsico got caught with their neck stuck out. The next area of questionable advertising and product sales is in the computing industry. The Hardware and software sales "deals" are truly in need of the ultimate test. Bundle deals, are they really deals? Software support and update programs are they for real or merely delightful cash cows? We'll be looking at this picture in the next few weeks. Stay tuned. its going to get very interesting. In the last twenty four hours. another of the, "Boy Who Cried Wolf", has appeared busily denouncing Microsoft's Personal WebServer etc. as being infested with security leaks. Hmm after careful examination, the alarm sounded by this "expert" proved to be a very false alarm. One can only wonder how many more will "jump up" taking cheap shots at MS in vain attempts at making a name for themselves. Gotta admit it does make for an interesting and diversified world though. Sorta reminds one of a set of Dice without all the dots! Next Week. Building a Powerhouse Computer on a Budget! Ralph... Of Special Note: http//www.streport.com STReport is now ready to offer much more in the way of serving the Networks, Online Services and Internet's vast, fast growing site list and userbase. We now have our very own WEB/NewsGroup/FTP Site and although its in its early stages of construction, do stop by and have a look see. Since We've received numerous requests to receive STReport from a wide variety of Internet addressees, we were compelled to put together an Internet distribution/mailing list for those who wished to receive STReport on a regular basis, the file is ZIPPED, then UUENCODED. Unfortunately, we've also received a number of opinions that the UUENCODING was a real pain to deal with. So, as of October 01,1995, you'll be able to download STReport directly from our very own SERVER & WEB Site. While there, be sure to join our STR list. STReport's managing editors DEDICATED TO SERVING YOU! Ralph F. Mariano, Publisher - Editor Dana P. Jacobson, Editor, Current Affairs Section Editors PC Section Mac Section Atari Section R.F. Mariano J. Deegan D. P. Jacobson Portable Computers & Entertainment Kid's Computing Corner Marty Mankins Frank Sereno STReport Staff Editors Michael Arthur John Deegan Brad Martin John Szczepanik Paul Guillot Joseph Mirando Doyle Helms John Duckworth Jeff Coe Steve Keipe Victor Mariano Melanie Bell Jay Levy Jeff Kovach Marty Mankins Carl Prehn Paul Charchian Vincent P. O'Hara Contributing Correspondents Dominick J. Fontana Norman Boucher Daniel Stidham David H. Mann Angelo Marasco Donna Lines Ed Westhusing Glenwood Drake Vernon W.Smith Bruno Puglia Paul Haris Kevin Miller Craig Harris Allen Chang Tim Holt Ron Satchwill Leonard Worzala Tom Sherwin Please submit ALL letters, rebuttals, articles, reviews, etc... via E-Mail to: CompuServe 70007,4454 Prodigy CZGJ44A Delphi RMARIANO GEnie ST.REPORT BIX RMARIANO FIDONET 1:112/35 ITC NET 85:881/253 AOL STReport Internet rmariano@streport.com Internet CZGJ44A@prodigy.com Internet RMARIANO@delphi.com Internet 70007.4454.compuserve.com Internet STReport@AOL.Com WORLD WIDE WEB http://www.streport.com STReport Headline News LATE BREAKING INDUSTRY-WIDE NEWS Weekly Happenings in the Computer World Compiled by: Dana P. Jacobson Software Causes 19 Hour AOL Crash America Online was shut down for 19 hours yesterday the worst blackout in the Vienna, Virginia, firm's 11 year history apparently because of a problem with computer switches that route data from the external network that spans the country into AOL's main network center. That problem seems to have been fixed, but "AOL said, however, that the root of the problem has yet to be determined and that the company would be studying the shutdown throughout the night," writer Jared Sandberg of The Wall Street Journal reports this morning. The outage, which prevented any user from being able to get online with the service, began at 4 a.m. Eastern Time yesterday and continued until after 10 p.m. Sandberg said the company didn't know how many of its members were trying to get online yesterday, adding AOL said the blackout won't have a material financial impact. "But," adds the Journal, "AOL's media partners, which receive royalty payments from AOL based on subscriber usage fees, will have missed a day's worth of revenue. Moreover, the potential for damage to AOL's reputation for reliability, which has suffered in previous smaller outages, could effect turnover among the company's customers." Says the Journal, "Company executives have said that among longtime users who leave the service, complaints concerning connection problems have been among the most frequently cited reasons for leaving." Meanwhile, AOL officials told the paper it will offer subscribers a credit of 3 percent of the $9.95 monthly fee it charges users, or 30 cents a customer. AOL Vice President Jean Villanueva told Sandberg that though the company has backup systems for various areas of the service, the affected internal network had no such "redundancy," adding she didn't know by last night how many people called the service to complain. "It was one of our busiest days." Renewed Effort to Block Net Calls A group of 175 small to mid sized long distance telephone companies is again asking to FCC to take action against firms that offer Internet based voice communications. Several companies currently offer software that allow users to make long distance calls over the Internet. Although the voice quality is far below that provided by standard telephone connections, users can place calls for only a fraction of the price demanded by long distance carriers. Last March, the phone companies, organized as America's Carriers Telecommunication Association, petitioned the FCC to crack down on Internet vendors that offer voice communications products. The FCC has since indicated that it is in no hurry to address the issue, prompting the ACTA to issue an open letter to FCC Chairman Reed Hundt. "Whistling by the cemetery, Commissioner Hundt suggests that technology, competition and access charge reform will 'make the problem go away,'" states the letter, signed by ACTA General Counsel, Charles H. Helein. "If this were true, the Chairman seems to have written the need for his agency's involvement out of the picture. If there is no need for the Commission's involvement in such issues as raised by Internet telephony, what is the purpose of having an 'expert' body to deal with such far reaching issues?" The ACTA contends that the FCC must not wait until Internet telephony "produces a more palpable impact on the nation's traditional communications infrastructure." Decency Act to Get Quick Action Legal analysts are predicting the U.S. Supreme Court will move quickly to review a new law regulating indecent material on the Internet now that a second panel of judges has found portions of the act unconstitutional. As reported, three New York federal judges have ruled the new Communications Decency Act was overly broad because it bans constitutionally protected indecent speech between adults while trying to shield children. This is the second recent victory for the Net's free speech advocates. Last month, a federal panel in Philadelphia also ruled parts of the act to be unconstitutional, saying portions were too vague as well as too broad. This week's second ruling "makes it even more inevitable that the Supreme Court will take this quickly," attorney Steven Reiss of the New York firm Weil, Gotshal & Manges told reporter Gail Appleson of the Reuter News Service. "I would expect you would see an order this fall taking one of these cases." The earliest the court might announce if it will review either case or a combination of the two is the last week in September, a Supreme Court spokeswoman told the wire service. "While it is difficult to predict how the high court will rule," says Appleson, "the fact that six judges see constitutional problems with the law does not bode well for its future. ... Lawyers said Monday's ruling was also significant because of the prominence of the panel members." The controversial Computer Decency Act of 1996 was passed overwhelmingly by Congress as part of the broader Telecommunications Act of 1996 and was signed by President Clinton on Feb. 8. Since lawmakers expected immediate constitutional challenges, they included provisions allowing hearings before special panels of federal judges, whose decisions can be appealed directly to the Supreme Court. As reported, the U.S. Justice Department already has filed an appeal of the June ruling and has 20 days to act on the New York decision. A spokesman for the Manhattan U.S. attorneys office told Appleson that prosecutors still are studying Monday's ruling and could not comment on whether they might move to combine the cases. IBM Upgrades Anti Virus Tool IBM has announced an improved version of its IBM AntiVirus software. The company says its IBM AntiVirus 2.5 has been enhanced to provide safer, faster virus protection for the Internet, including the ability to scan Internet documents for viruses before they can infect a computer. The software provides protection from more than 8,000 strains of computer viruses, including the Concept virus and other Word macro viruses. Macro viruses, which infect macro programs embedded in documents, have emerged as a new and rising problem. The Concept virus, which infects Microsoft Word documents, was first seen less than a year ago and is now one of the most prevalent computer viruses in the world. The desktop version of IBM AntiVirus 2.5, which runs on Windows 95, Windows 3.1, OS/2 Warp and DOS computers, is scheduled to become available in mid August for $49. A network version will ship at the same time. "Unlike other anti virus products that are limited to specific Web browsers and sold separately, IBM AntiVirus includes 'all in one' Internet protection," says Steve Rosenblatt, worldwide segment manager for IBM AntiVirus. Hare Virus Set to Strike "Beware the Hare!" is the word from Cheyenne Software Inc., an anti virus software publisher based in Roslyn Heights, N.Y. The Hare virus is difficult to detect through traditional anti virus software and is considered a severe and highly destructive threat, says Cheyenne. The virus is set to strike on August 22nd and September 22nd. On these dates, Hare will destroy all data on an infected PC by overwriting the computer's hard drive. The Hare virus was first distributed over the Internet in May of this year. Since then, two other versions of the virus have also been distributed in files on a variety of Internet newsgroups. The Hare virus has been detected in the United States, Canada and Europe. Perhaps the most widespread posting of the Hare virus was in the pkzip300.exe file on the alt.comp.shareware newsgroup, says Cheyenne. Users unwittingly can infect their PCs by simply downloading and executing this file. According to Cheyenne, Hare first infects the master boot sector of the PC and, when the PC is restarted, installs itself into memory, thereby contaminating .COM and .EXE files. Hare can avoid detection by traditional anti virus software by remaining dormant within infected files and slowly changing as it replicates. PCs infected with Hare will display the message "HDEuthanasia..." when the PC is restarted on August 22nd or September 22nd, says Cheyenne. Hare will then overwrite the entire hard drive, deleting all data. After attempting to destroy all data on the PC, Hare returns to dormancy and may then replicate to any floppy diskette used to recover and reboot the damaged PC. "The Hare virus is one of the most complex viruses in the wild today," says Ian Whalley, editor of Virus Bulletin, a U.K. based computer security publication. "This virus will certainly present serious problems to users who come into contact with it and who do not have adequate protection installed on their systems." Intruders Hit Scotland Yard Scotland Yard reportedly has been targeted by computer vandals who broke into a security system to make international calls at the expense of London's famed metropolitan police headquarters. The Reuter News Service says a police spokesman would not confirm a report in the Times newspaper that said calls totalled $1.5 million, saying only the main computer network remained secure. Said the spokesman, "There is no question of any police information being accessed. This was an incident which was investigated by our fraud squad and by AT&T investigators in the U.S." The Times said AT&T investigators were involved because most of the calls were to the United States. The newspaper reported the online vandals made use of a PBX call forwarding system that lets employees to make business calls from home at their employer's expense. "They dial a special number on the company switchboard," says Reuters, "followed by a pass code, and then the outside number they require." The police spokesman said the fraud loophole was stopped in March last year, adding the equipment had been supplied by a reputable firm and the matter was "subject to civil proceedings." Did U.S. Spies Invade UK System? London's top newspaper is reporting U.S. Secret Service agents broke into the computer systems of the European Parliament and the European Commission in a campaign to steal political and economic secrets. The Sunday Times alleges security officials in Luxembourg have discovered the U.S. used the obtained information to help in negotiations last year on the General Agreement on Tariffs and Trade. The French Agence France Press International News Service quotes Lord Plumb, leader of Britain's Conservative members of the European Parliament, as saying he was shocked by the disclosure and "I will be taking this up directly with the American ambassador to the European Union." The European parliament's computer system links about 5,000 MEPs, officials, researchers and other staff with the European Commission headquarters in Brussels and the Council of Ministers. Says AFP, "Suspicions were aroused when officials suspected the United States had advance information about confidential European Union positions in the GATT talks." An unidentified EU source told The Times, "It was established that the system had been penetrated just days before the talks. Our principal concern is not to establish what has already been copied but to ensure that it does not happen again." Netscape, Microsoft Lock Horns An unusual legal battle is shaping up between Microsoft Corp. and Netscape Communications Corp. over one of the Internet's hottest markets. Writing in The Wall Street Journal this morning, reporter Don Clark says the fight likely is "adding a new issue to competitors' complaints about Microsoft's businesses practices," because Netscape already has filed a complaint with the Justice Department. At issue is software used to set up World Wide Web sites and some controversial Microsoft licensing restrictions on the use of its Window NT operating system. "Microsoft, Netscape and several other competitors are selling the so called Web server programs that run on computers that use Windows NT," Clark reports. Microsoft last week "sent a letter to Netscape demanding that it stop distributing a price comparison between the two companies' Web server programs." The Journal says the letter alleges the comparison suggests Web servers can be used with a low end version Windows NT designed for workstations, potentially violating terms of Microsoft's licensing agreement. The license provisions in quest "allow only 10 simultaneous electronic connections to Windows NT Workstation, a restriction designed to encourage people to use a more powerful version of the software that works on larger computers called servers that tie together multiple desktop computers," Clark notes. Microsoft's Web server software works only with Windows NT Server, and comes bundled with the product. Noting the workstation version of Windows NT sells for about $300, compared with about $1,000 for the server version, Clark reports, "Netscape and other competitors argue that customers can still pay less by using their Web server programs with Windows NT Workstation." It seems like an arcane point, but Clark comments that the restrictions on Windows NT have attracted unusual attention "because of the industry's growing focus on the Web server market, and fears that Microsoft will unfairly shift its dominance from personal computer software to the Web." The paper says Microsoft originally planned to insert software code that would block more than 10 connections from a new workstation version of Windows NT, "but removed the code last month in response to complaints by competitors and some customers." Microsoft's letter disclosed by long time Microsoft foe, attorney Gary Reback gives Netscape until Aug. 15 to "cease and desist" its pricing comparison, but, the Journal points out, does not specify what it intends to do if Netscape does not comply. Scientologists Settle Net Suit A copyright dispute with an Internet provider that some say had many in the computer industry worried it might lead to restricted freedom of expression in cyberspace has been settled by the Church of Scientology. Reporting from San Jose, California, The Associated Press says the church and Netcom On Line Communication Services have agreed not to discuss details of the out of court settlement reached Friday. However, they did say the online service has posted a warning to its subscribers telling them not to use Netcom to "unlawfully distribute the intellectual property of others." As reported earlier, the dispute arose when a former Scientology minister became a vocal church critic and posted some of the church's writings on private bulletin board to which Netcom arranged for its subscribers to have access. "One posting," says AP, "was a 17 page transcript of confidential lectures by Scientology founder L. Ron Hubbard. The Religious Technology Center, a wing of the church, claimed copyright infringement, saying many of its literary works are trade secrets. The church notified Netcom and the bulletin board operator about the alleged infringement, but neither did anything." In February 1995, the church sued Netcom, the bulletin board operator and the user who posted the writings, 48 year old Dennis Erlich of Glendale, winning an order allowing its representatives to raid Erlich's home and seize Hubbard's copyrighted work. Subsequently, Netcom and the bulletin board's operator, Tom Klemesrud of North Hollywood, argued that they are only conduits for material and are in no position to screen all messages. Last November, a federal judge ruled: ú Netcom and Klemesrud were not directly responsible for the copyright infringement. ú But that they may have contributed to the infringement by failing to remove the documents once they were informed of them. The church has other lawsuits pending against Klemesrud and Erlich. North Korea Alleges Net Blocking The official news agency in North Korea is blasting its neighbors to the south for allegedly blocking its citizens' access to a new Internet page sponsored by Pyongyang. "What Seoul should block," says the Korean Central News Agency dispatch, "is not the North Korean Page but the U.S. channel dealing with methods of murder and robbery and pornographic scenes too shameful to watch." Reporting from Tokyo, United Press International says the KCNA report quoted researcher Kim Hyong sok of the Information and Culture Center of North Korea as saying the history of the Internet has seen no example of people being punished for monitoring certain sites. Said Kim, "Such punishment would cause bitter condemnation from the international community." UPI reports, "Bristling with slogans about the 'great leader comrade Kim Il sung,' the Internet page has upset South Korean leaders, said KCNA, to the point of having access to the site banned." South Korean law specifically prohibits any newspapers or other publications from receiving KCNA services on the grounds of "national security." As reported, authorities in Seoul last June declared a Canadian university student's World Wide Web site on North Korea "subversive" and forbade 14 local computer networks from accessing it. Under South Korean law, it is a serious crime to "manufacture, import, copy, possess or distribute data that can benefit, eulogize or encourage the enemy." Reached by UPI, a South Korean Embassy spokesman in Tokyo declined comment on the KCNA report but said the Canadian student closed the WWW page of his own volition. Says the wire service, "The two Koreas have technically remained in a state of war since the 1953 armistice that ended the Korean War and the Internet dispute is but the latest in a long history of jammed radio transmissions and other banning of data transmissions across the 38th parallel that divides the Communist North from the capitalist South." Apple Unveils New Macs Apple Computer Inc. today unveils new upgraded Macintosh computer models, introducing high end Power Macintoshes that include the firm's first multi processor machines and a new Macintosh Performa model. The Reuter News Service characterizes this as "a bid to begin delivering on Chief Executive Gil Amelio's plan to bring value added products to market swiftly." The models are the first major products to be developed and brought to market under the leadership of Amelio, who took over in February, and his management team. Editor Pieter Hartsook of the Hartsook Letter told the wire service this is "certainly important from a symbolic perspective because this is really the first introduction which Amelio and his crowd really had a hand in." The six new Power Macintosh models range from a model with a 120MHz PowerPC microprocessor up to a 9500/180 MP model, which is Apple's first multiprocessor model and priced at $5,699. The high end Power Macintosh 9500, priced at $4,899, is configured with a 200MHz chip. Apple said its 132MHz Power Macintosh 7600 and 150MHz 8500, priced at $2,999 and $3,599, respectively, are available immediately with other models fully available in September. Reuters quotes Apple executives as saying there will be more Performa computers targeted at consumers before the end of the year, including some at price points below $2,000. Macintosh Still Holds On A new survey conducted by trade journal MacWEEK finds that Apple Computer Inc.'s Macintosh and Power Macintosh computers have attained a solid position as mainstream business platforms. The survey also finds that the machines also have a strong hold on creative niche applications such as graphic arts, Internet content development and multimedia. The MacWEEK 200 survey of largest Macintosh user sites finds that 98 percent of the sites are running business productivity applications on 25 percent of their Macs. In addition, 90 percent of the Macs at 81 percent of the surveyed sites are running business productivity applications. "Clearly, reports of the Mac's death are greatly exaggerated, to paraphrase Mark Twain's famous quip," says Rick LePage, editor in chief of MacWEEK. "Our survey results this year confirm that the Mac now is more broadly established than ever as a business productivity tool, while it also continues to dominate its traditional creative niche markets as the computer platform of choice. Indeed, 71 percent of the MacWEEK 200 sites will spend between $50,000 and $2.4 million on Macs this year." Upgraded Mac WordPerfect Unveiled Corel Corp. has introduced Corel WordPerfect 3.5 for Macintosh and Power Macintosh, an updated version of the venerable word processing program. The new package includes a large collection of clip art, photos, sounds and fonts, along with MasterJuggler Pro, a font management utility. Language tools for writing in Spanish, French and German are also included. "Corel is excited about the business prospects we see for supporting the Macintosh platform. We think the Mac will play a major role in our future," says Michael Cowpland, Corel's president and CEO. "WordPerfect for Macintosh has traditionally given users greater choice and flexibility in utilizing new Apple technologies and Corel will continue to be the industry leader in word processing innovation." Corel WordPerfect 3.5 for Macintosh and Power Macintosh is expected to ship by the end of August for $295. Upgrades and competitive upgrades will be priced at $89. Microsoft Offers New Windows NT Some computer makers believe a new version of Microsoft Corp.'s Windows NT operating system could help spur new hardware sales to businesses. Associated Press writer Rory Marshall says Microsoft "is making a push for a bigger share of the market for systems that link numerous PCs into networks, and that can run more complicated programs than the typical home PC would use." Earlier this week Microsoft completed work Windows NT version 4.0 and sent it to manufacturing sites in advance of a formal introduction of the system today during a meeting with financial analysts. "Although Windows NT is not designed for home or consumer use," notes Marshall, "a key advance over previous versions is its adoption of the same appearance as Windows 95." The recommended cost of the 4.0 server product will be about $1,000 for a computer that works with 10 other PCs, says Jonathan Roberts, a Microsoft marketing director. A desktop PC version, called Windows NT Workstation, will cost $319. In technical features, the new Windows NT "will put Microsoft on a more level footing with competitors such as Novell's NetWare, IBM's OS 2 and the various versions of Unix operating programs found in machines by IBM, Sun Microsystems and Hewlett Packard and others," Marshall comments. "Such programs are known by the technical label of '32 bit' for the size of instruction they permit." Meanwhile, Roberts told AP that while Windows NT had a slow start when it first became available in 1993, the server product sold 450,000 units and workstation version just over 1 million units last year. Adds Marshall, "That's a reflection of how PCs, packed with more powerful processing chips, have been chosen to do jobs that were previously done by more expensive Unix workstations." Intel Releases 150MHz Pentium A 150MHz Pentium processor for mobile computers is being released by chipmaker Intel Corp., which is selling the new chip for $341 each in 1,000 unit quantities. Reporting from Intel's Santa Clara, California, headquarters, United Press International comments the announcement comes "at a time when Intel is trying to become more of a communications and computing company rather than only the maker of the microprocessors that power most of the world's personal computers." The wire service says the development also fits in with Intel's strategy to turn PCs into a machine with far wider uses, thus expanding demand for new PCs and chips. The previous fastest Pentium chip designed to run mobile computers operates at a speed of 133 megahertz. Gateway 2000 and Packard Bell NEC both announced plans to use the new chip in notebooks, UPI reports. PC World Publisher Starts Web Mag PC World publisher IDG Communications Inc. says it will produce a monthly consumer magazine about the World Wide Web, starting next month. Called The Web, the magazine will have celebrity features and columns about the computer network and reviews of Web sites related to music, films, sex, politics, sports and other topics, says The Associated Press. IDG, which also publishes and several computer industry trade newspapers, "will aim the magazine at 25 to 45 year olds who are interested in the Web as an entertainment medium," the wire service says, noting the company's traditional rivals all are producing Web magazines for consumers. CMP Publications Inc. publishes NetGuide magazine, Mecklermedia has Internet World, Ziff Davis has Internet Life and Newsweek publishes Virtual City. The Web publisher Greg Mason told the wire service he hopes the magazine will avoid the technology reviews and stories found in the other magazines, adding, "Our goal is to tell readers what's `on tonight' and to help them spend their Web watching time and money efficiently." Science Fiction Author Signs Deal Science fiction superstar Alan Dean Foster has signed a long term deal with MagicMaker Inc. of Palo Alto, California, to create literary works that mix interactive and online media. Michelle Kraus, MagicMaker's CEO, says Foster will create stories for several properties due in late 1996 and 1997 as online and multiplayer interactive media. The initial title will be available on CD ROM in early 1997. Sequels will begin appearing soon thereafter, together with books, soundtracks and other merchandise. "I called this best selling author out of the blue and said, I want to come and show you the future of entertainment and I want you to be a part of it," says Kraus. Adds Foster, "When Michelle came to visit me in the desert, I found her vision of where the company and its products were headed compelling. It offered a creative challenge that I could not turn down. In the future, I see MagicMaker's new products as only the beginning of a long and fruitful creative partnership." Alan Dean Foster is one of the world's best selling science fiction authors. He produced novelizations of Star Wars, the three Alien films and Alien Nation. He also created the treatment for the first Star Trek movie. Sanyo Offers New Notebook A new notebook PC featuring high speed microprocessors and a 2.1 gigabyte hard disk drive is being introduced today in Japan by Sanyo Electric Co. Reporting from Tokyo, the Dow Jones news service says the new product, called Winkey, is Sanyo Electric's "latest foray in an increasingly competitive market which has seen several rivals announce new products in the last few months." Sanyo officials told the wire service the product is set to go on sale in Japan Aug. 31 and it has no plans yet to sell the product abroad. The new notebook features Pentium microprocessors with processor speed of 150MHz. They also have an eight speed internal CD ROM drive, making them the fastest on the market. Acer Offers Machine Under $1,000 Acer America Corp. has followed AST Research Inc.'s lead to become the second major PC maker offering a personal computer for just under $1,000. Targeting college students and families with children in school, Acer calls the new system Acer Back to School Aspire, says The Associated Press, which adds that the price does not include a monitor, which costs $300 to $400 more. AP says the machine comes in the emerald and charcoal casing that has distinguished Acer PCs for a year and uses an 100MHz microprocessor, 8MB of main memory and a 1 gigabyte hard drive. It has a 14,400 bits per second modem and video and sound enhancing features. "Most PCs start at around $1,500 and offer slightly more power than the Acer Back to School Aspire," AP notes. "For example, computer stores in New York now charge about $1,500 for a PC with a 133 MHz microprocessor and 16 megabytes of main memory." AST is offering a $999 PC through Wal Mart that includes a monitor. However, the machine is less powerful, using a 486 class chip, AP notes. Net Seen as Expensive, Exclusive The Internet will become an increasingly expensive and exclusive medium, says cyberspace expert Robert Silverman, a senior writer for Inside Media magazine. "As bandwidth increases, the cost of providing and receiving content rich with audio and video will increase," said Silverman during a debate at the Cyberspace and the American Dream Conference in Aspen, Colorado. "Telephone modems already are being replaced with more expensive cable modems, which will give way to still pricier fiber optics all to better capture content. Meanwhile, content providers will be spending more and more on technology to provide that richer content. The inescapable fact is that accessing the Net will become considerably more expensive both for end users and providers." Silverman predicted the high cost of Internet technology will act as a barrier to many on the lower end of the economic scale. "Indeed, some of the larger content providers already are talking about and enforcing 'gated communities' on the Infobahn," noted Silverman. "And even those with the economic and technological wherewithal to make full use of Net will have to pay subscription fees for the better sites. "Of course, these 'gated communities' also will have their 'housing project' brethren," Silverman added, stressing the inherent inequities such a paradigm would invoke. The Great Equalizer? "That the Net politically empowers the little guy is also a myth," said Silverman. "The ruling elite remain as distant as ever, regardless if they are online or off line." Dataquest Lowers Win95 Forecast Windows 95 is on pace to become the No. 1 shipped operating system in 1996, but Dataquest Inc. has reduced it's forecast for Microsoft's operating system considerably. The San Jose, California based market researcher forecasts that shipments of Windows 95 will reach 45.7 million units in 1996, down 27 percent from predictions made earlier this year. As it turns out, Microsoft's biggest competitor is itself. Dataquest is lowering it's estimate for Windows 95 because of the continuing success of Windows 3.1x. Earlier this year, Dataquest forecast that Windows 3.1x shipments would shrink to 9.5 million units in 1996, but because of the demand for the operating system in the first half of this year, Dataquest now expects shipments to only fall to 20.9 million units this year. "Large and medium size companies are driving the continuing strong demand for Windows 3.1x," says Chris Le Tocq, director and principal analyst of Dataquest's personal computing software program. "IS managers' initial aggressive upgrade plans have become a deferred 32 bit decision, driven by high expectations for Windows NT 4.0 and an assessment that Windows 95 is an interim desktop solution, a stepping stone to Windows NT." Mac Still Leads in Schools New market research shows that Apple Computer Inc.'s Macintosh is the leading computer platform in the public kindergarten through high school market, and the one most educators intend to buy in the coming school year. According to Quality Education Data, the Macintosh now accounts for 41 percent of the computers in the K 12 public education market, up five points from last year. Vintage Apple II computers account for 20 percent of the installed base, bringing Apple's total share of computers in U.S. K 12 public schools to 61 percent. QED indicates that as the installed base of Apple IIs is replaced, educators have turned to the multimedia rich Macintosh. It shows Macintosh as the computer of choice for more than half (55 percent) of all intended school purchases in 1996 97. This is more than seven times the number of computers educators plan to buy from the next most mentioned brands, IBM and Compaq, each with 7 percent. "There is no doubt that the preference for Macintosh remains strong in the K 12 market," says QED president Jeanne Hayes. "Our research clearly shows that Macintosh is by far the preferred computer platform in the education market. The majority of school districts plan their technology futures around this platform." Poll Finds Mom Is Key to Home PC Mothers play an important role in the purchasing of computers and software for their families in some cases, a greater role than fathers says a new survey. FamilyPC magazine, which conducted the research, says in a statement, "The process of buying computers and software for families is highly collaborative. Mothers and fathers play a dual role in this process, often aided by their children. When it comes to buying software for children, mothers play the leading role." The study found: ú When it comes to buying software, three or four different family members play a role in the process. ú In buying a PC for the family, the decision making is usually done by both mother and father, with children being the motivator for such a purchase by expressing the need or desire to have a PC. ú Reviews in computer magazines, magazine awards and magazine advertising are the most important factors when these families are in the market to purchase software. Recommendations and advice from others are also very important. When the respondents buy a PC, the key considerations are product features such as 24 hour technical support, the reputation of the manufacturer and the software bundle. Net Bomb Injures Two Youths Two boys, ages 11 and 13, are recovering today from burns suffered when a "napalm bomb" they learned how to make on the Internet blew up in their faces. Reporting from North Attleboro, Massachusetts, 30 miles south of Boston, United Press International quotes police as saying the youngsters were cooking a combination of soap shavings and gasoline on a kitchen stove when the concoction burst into flames Tuesday morning. The younger boy, Scott Landry, escaped with only minor burns, but his friend Michael Caponigrow was rushed to the Shriners Burns Institute in Boston with burns over 11 percent of his body. He was listed in fair condition last night. In a frantic 911 emergency call from his family's home, Landry told police he and Caponigrow got the recipe from an Internet site that told them in detail how to make the device. He shouted over the phone, "Help! There's fire in the house. I could die." Police told UPI that investigators are trying to track down the author of the online data "and find out how such dangerous information ever made its way onto the worldwide computer network." Landry's mother told police the formula had been spotted by her 14 year old son, who passed on the information to his brother. Town Police Chief John Doyle told the wire service the boys had planned to use the homemade explosive "to blow up some rocks or something," adding, "I don't even think they know what napalm is," referring to the highly flammable chemical used to bomb enemy targets during the Vietnam War. E TRADE Unveils Upgraded Site E TRADE Securities Inc. today announced a major upgrade of its CompuServe based online trading service. The revamped site includes a new look with point and click access to all trading services, as well as current news, price graphs and company reports for individual investors. In addition to the new look and functionality, E TRADE's users may also continue to trade securities through E TRADE's menu driven interface. The new trading service enhancements include strategically placed direct links to online help, such as instructions on how to enter a stock order or how to add money to an account. Other new features will include access to breaking news and price charts on more than 12,000 stocks. E TRADE users can also tap into a wide array of fundamental and historical information and earnings forecasts. Users can create personal Stock Watch lists that automatically link them to this information. The new interface also takes advantage of the capabilities of the Netscape Navigator browser that CompuServe members can now download without connect time charges. E TRADE users can choose from a vast array of financial services that allow individual investors to easily identify investment opportunities, research those opportunities, execute transactions 24 hours a day and monitor the results of their investment decisions. "E TRADE has been a leading provider of cost effective, round the clock online trading services for more than four years to CompuServe members," says Scott Kauffman, CompuServe's vice president for online services. "These new enhancements will make trading online even easier and provide the trading information, online help and other value added services that CompuServe is committed to giving our customers." Foster Returns to Head Stratus Stratus Computer Inc. founder/chairman Bill Foster is returning to the post of CEO as well, replacing Gary Haroian at the helm of the Marlboro, Massachusetts, firm. "Gary and I have had some philosophical differences over the long term direction of the company," Foster said in a prepared statement. "Because of this, Gary has decided to leave Stratus to pursue other business interests." Foster added Haroian "has made innumerable contributions to Stratus over his 13 years with the company," adding, "Much of our success has been due to his hard work and dedication, and I know a very successful future is ahead of him." CD ROM's End in Sight CD ROM's days are numbered, finds market researcher International Data Corp., which reports that the technology is about to be blind sided by the new kid on the block DVD (digital video disk). According to IDC, worldwide DVD ROM unit shipments will surpass CD ROM by the year 2000, climbing to 117.6 million in 2001. With this expected growth, DVD is well on its way to becoming the next dominant technology in the removable storage market, says IDC. "There appears to be a high level of DVD awareness among software publishers," says Crawford Del Prete, IDC's vice president of storage research. "We expect over 13 percent of all software will be available in DVD format by the end of 1998." For Immediate Release Corel Updates and Re-releases Corelr WordPerfectr 3.5 for Macintosh OTTAWA, Canada -August 8, 1996-Corel Corporation and its subsidiaries are pleased to announce the updated version of Corelr WordPerfectr 3.5 for Macintoshr and Power MacintoshT. The new Corel version includes a large collection of popular clipart, photos, sounds and fonts, along with MasterJuggler ProT, the comprehensive font management utility. Language tools for writing in Spanish, French and German are also included. The product is expected to ship by the end of August. Corel WordPerfect 3.5 is an updated version of the two time Eddy award- winning WordPerfect 3.5, previously shipped by Novell, Inc. WordPerfect was the first word processor to ship as accelerated for Power Macintosh and is an established leader in support for Appler technologies. "Corel is excited about the business prospects we see for supporting the Macintosh platform. We think the Mac will play a major role in our future," said Dr. Michael Cowpland, president and chief executive officer of Corel Corporation. "WordPerfect for Macintosh has traditionally given users greater choice and flexibility in utilizing new Apple technologies and Corel will continue to be the industry leader in word processing innovation." The new Corel package includes a collection of more than 150 TrueTyper fonts, 5400 clip art images, 187 textures, 67 sounds and 200 stock photos. For managing new fonts and sounds, MasterJugglerT 2.0 Pro, the comprehensive font, sound and desk accessory utility, is also provided. Spanish, French and German language tools including a spell checker and thesaurus - previously sold separately - are now also included in the new Corel package. To continue helping users put the Internet to work, Corel has included the updated Netscape NavigatorT browser version 2.02. Updated HTML features include an HTML button bar and macros for creating custom HTML forms and borders. Also, the HTML export now converts PICT images to JPEG format for easy viewing on the World Wide Web. Corel WordPerfect 3.5 easily converts many popular document types including Microsoftr Word versions 4, 5, and 6, RTF (Rich Text Format) and Corel WordPerfect 7 for Windows 95. A non-WordPerfect document can be opened directly from the desktop into WordPerfect via support for Macintosh Easy Open. Additional document types can be converted through support for XTND and MacLink Plus conversion filters. Highlights of Corel WordPerfect 3.5 include: ú Updated ruler interface ú Print Envelope Feature ú Automated Templates ú Make It FitT ú Text to Speech with MacinTalkT (System 7.5 only) ú Bookmarks with hyperlinks ú Internet Publishing Tools, with HTML import and export Future Development Corel is committed to providing Macintosh users with word processing innovation by continuing its leadership in support of new Macintosh technologies, attention to the Macintosh interface and strong commitment to the Macintosh platform. Corel WordPerfect 3.5 for Macintosh will continue to set new standards for Macintosh business applications and add support for OpenDoc functionality and Macintosh OS 8 in future releases of Corel WordPerfect for Macintosh. Pricing Corel WordPerfect 3.5 for Macintosh is available for a suggested retail price of $249 US. WordPerfect users may upgrade for a suggested retail price of $89 US, with competitive upgrades available for the same price. Qualifying products include, but are not limited to, Microsoft Word, MacWrite Pro, Claris Works, Nisus Writer, Now Write, and Full Write. Current WordPerfect 3.5 users will be able to download an update installer from the Corel web site (www.corel.com), America Online, CompuServe, FTP, or Corel's BBS. The update installer will only update current versions of 3.5 and does not include the new fonts, graphics, sounds, or MasterJuggler Pro font utility. System Requirements For Macintosh computers, Corel WordPerfect 3.5 will require a minimum configuration of a Macintosh II, LC or above, System 7.0 or above, 2 MB of RAM, and will use at least 6 MB of disk space for a minimum install and 16 MB for a standard install. For Power Macintosh computers, Corel WordPerfect 3.5 requires 5 MB of RAM, System 7.1 or above (System 7.5 recommended), and will use at least 6 MB of disk space for a minimum install and 16 MB for a standard install. Customer Support Corel is the only software vendor to offer free, unlimited technical support (toll charges apply) for the life of the product. (Life of the product is defined as the time between product introduction-up to and including-six months after product is no longer sold by Corel). WordPerfect for Macintosh support can be reached at (801) 765-4020. Corel also offers these additional support options: ú IVAN: Corel's Interactive Voice Answering Network provides customers with instant access to the most current product information available. Customer can obtain this service 24-hours a day, 365 days a year by calling (801) 765-4038. (Toll charges apply) ú Bulletin Board Service (BBS): A 24-hour product information and program file resource that may be accessed at the following number: (801) 221-5197. For an explanation of how to access and use the BBS, call (801) 765-4033. ú Fax on Demand Service: Customers may obtain faxed information by calling (801) 765-4037. ú Searchable Knowledge Base: Access the same knowledge base used by Corel's own customer support department to find "how to" information and solutions for known problems. Available on the World Wide Web at http://www.corel.com/support. ú WPMac News: This monthly online newsletter is written by Corel's WordPerfect Macintosh support team. Each month they share tips & tricks, work arounds, discuss common calls, and highlight a new feature each month. This informative newsletter may be found at http://www.corel.com/wpmacnews, or download on America Online (keyword = WordPerfect) or CompuServe (GO WPMAC). Other Corel Products for Macintosh In addition to Corel WordPerfect 3.5 for Macintosh, Corel Corporation has more than 30 Macintosh titles on the market today and will soon ship CorelDRAWT 6 for Macintosh. Also coming soon to the Macintosh platform is one of the top selling consumer titles on the market, Corel Print HouseT, along with CorelVIDEOT for desktop video and video conferencing. Corel Corporation Incorporated in 1985, Corel Corporation is recognized internationally as an award-winning developer and marketer of productivity applications, graphics and multimedia software. Corel's product line includes CorelDRAWT, the Corel WordPerfect Suite and Corel WordPerfect Suite 7, Corel Office Professional, CoreIVIDEOT and over 30 multimedia software titles. Corel's products run on most operating systems, including: Windows, Macintosh, UNIX, MS-DOS and OS/2 and are consistently rated among the strongest in the industry. The company ships its products in over 17 languages through a network of more than 160 distributors in 70 countries world-wide. Corel is traded on the Toronto Stock Exchange (symbol: COS) and on NASDAQ-National Market System (symbol:COSFF). For more information visit Corel's home page on the Internet at http://www.corel.com. Corel and WordPerfect are registered trademarks and CorelDRAW, Print House and CorelVIDEO are trademarks of Corel Corporation or Corel Corporation Limited. Macintosh is a registered trademark and Power Macintosh is a trademark of Apple Computer Inc. All products mentioned are trademarks of their respective companies. Special Notice!! STR Infofile File format Requirements for Articles File Format for STReport All articles submitted to STReport for publication must be sent in the following format. Please use the format requested. Any files received that do not conform will not be used. The article must be in an importable word processor format for Word 7.0.. The margins are .05" left and 1.0" Monospaced fonts are not to be used. Please use proportional fonting only and at eleven points. ú No Indenting on any paragraphs!! ú No Indenting of any lines or "special gimmickery" ú No underlining! ú Columns shall be achieved through the use of tabs only. Or, column format in Word 6-7 Do NOT use the space bar. ú No ASCII "ART"!! ú There is no limits as to size, articles may be split into two if lengthy ú Actual Artwork should be in GIF, PCX, JPG, TIF, BMP, WMF file formats ú Artwork (pictures, graphs, charts, etc.)should be sent along with the article separately ú Please use a single font only in an article. TTF CG Times 12pt. is preferred. (VERY Strong Hint) If there are any questions please use either E-Mail or call. On another note. the ASCII version of STReport is fast approaching the "end of the line" As the major Online Services move away from ASCII.. So shall STReport. All in the name of progress and improved readability. The amount of reader mail expressing a preference for our Adobe PDF enhanced issue is running approximately 15 to 1 over the ASCII edition. Besides, STReport will not be caught in the old, worn out "downward compatibility dodge" we must move forward. However, if the ASCII readership remains as high, rest assured. ASCII will stay. Right now, since STReport is offered on a number of closed major corporate networks as "required" Monday Morning reading.. Our ascii readers have nothing to worry themselves about. Many grateful thanks in advance for your enthusiastic co-operation and input. Ralph F. Mariano, Editor STReport International Online Magazine EDUPAGE STR Focus Keeping the users informed Edupage Contents U.S. Yields To Japan On Oversight Of Japanese Chip Imports Radio Identification Chips Could Replace Some Bar Codes New Apple Computers Target High-End Users Will Gates Be The "Wintel Gorbachev"? Utilities Commission Says: One Area, One Area Code Nintendo's Hopes Built On New Game Player Apple Offers Web Search System For Performas Gasoline Wants To Be Free Scientology And Netcom Settle Copyright Suit Compaq Targets Workstation Market Microsoft Hopes Its Talisman Will Work Magic Intel Focuses On Hybrid Applications IBM And Mercedes Team Up On Auto Electronics "Smart Phone" Companies Merge To Form Tritech Corp. Cairo To Have "Annuity" Upgrade Model IBM Plans $2 Billion Investment In China A PC For The Living Room Microsoft, Netscape Escalate Browser Battles MCI Tests News Distribution Via Computer AT&T Sells Game Service To AOL Microsoft Sues IRS For Export Tax Benefits AOL Goes AWOL Phone And Cable Convergence In Canada Clinton On Education/Technology Joint Ventures Look Down At Your Computer Cybergangs U.S. YIELDS TO JAPAN ON OVERSIGHT OF JAPANESE CHIP IMPORTS American trade negotiators gave in to Japan's insistence that the U.S. cease trying to provide oversight of Japanese imports. In any event, most analysts think that such bilateral pacts are no longer relevant to the chip industry, which economic forces have made more competitive (with countries such as Taiwan and China now prominent in chip manufacture) and at the same time more cooperative (with companies in various nations working together to develop new chips). In 1986 the trade agreement called for Japan to import 20% of its chips; now one-third of all its chip purchases are imported. (Atlanta Journal-Constitution 3 Aug 96 D3) RADIO IDENTIFICATION CHIPS COULD REPLACE SOME BAR CODES Chipmaker Micron Technology of Boise, Idaho, has developed a "radio identification" chip likely to replace the traditional product bar code for such uses as remote tracking of shipping containers. With support from the Federal Aviation Agency, the company plans to develop an airline luggage security system that would use the new chips to track every package on an airplane, identify its owner, and call attention to possible bombs in packages not properly identified. The chips are expected to be produced for less than $1 each. (Wall Street Journal 2 Aug 96 B3) NEW APPLE COMPUTERS TARGET HIGH-END USERS With Apple's new Macintosh computers priced as much as $1,000 more than competing PCs based on Intel chips and Microsoft Windows operating system , Apple is following through on chief executive Gil Amelio's plan to concentrate on the needs of specialized high-end users such as professional graphics designers. The new machines will range from $2500 for a home unit to $5700 for a system with two PowerPC microprocessors to take advantage of Apple's next-generation operating system's ability to have a task worked on simultaneously by two separate chips. (Wall Street Journal 2 Aug 96 B3) WILL GATES BE THE "WINTEL GORBACHEV"? Red Herring magazine < http://www.herring.com/mag/issue34/letter.html > urges Microsoft's Bill Gates to use a cross platform architecture for the company's ActiveX software, arguing that "ActiveX is the right language for the Intranet and for useful pages on the World Wide Web" but that "Java is the right language for the emerging market of digital devices that will be attached -- in ways that are still mysterious -- to the Internet... In other words, Java is perfect for what it was originally designed for: the embedded systems inside smart telephones, faxes, printers, set-top boxes, and non-standard devices." The magazine admits that Gates could become "the Wintel Gorbachev" by following its advice, but insists that Microsoft would be foolish to hold onto proprietary standards too long. (Red Herring Aug 96) UTILITIES COMMISSION SAYS: ONE AREA, ONE AREA CODE Pacific Bell, the principal unit of the Pacific Telesis telephone group, failed to get permission from the California Public Utilities Commission to overlay new area codes in a geographical area on top of existing ones to meet the burgeoning demand for new numbers caused by dramatically rising numbers of fax machines, cellular phones, and pagers. PacBell rivals such as AT&T and MCI said that overlays are anti-competitive, and the Commission decided to continue dividing up overcrowded area codes into new areas and forcing some customers to change their three-digit codes. (Los Angeles Times 3 Aug 96) NINTENDO'S HOPES BUILT ON NEW GAME PLAYER Nintendo is hoping to reestablish its superiority in video games with its new 64-bit microprocessor designed by Silicon Graphics. The system features fully rounded figures that can turn on their heels, rotating realistically through 180-degrees on screen. Both of Nintendo's major competitors, Sega and Sony, are thought to be losing money on each of the 32-bit machines they sell, but making up their losses with royalties on sales of games that run on them. (Economist 3 Aug 96) APPLE OFFERS WEB SEARCH SYSTEM FOR PERFORMAs Apple has developed a user-friendly Web search capability called Personalized Internet Launcher for its 180 and 200 megahertz Performa computers. The systems also offer built-in blocking software from SurfWatch, a Web authoring tool for children, and a bundled browser from Netscape. Existing Apple owners can go to < http://myhome.apple.com > to obtain the software. (Interactive Age 2 Aug 96) GASOLINE WANTS TO BE FREE Author James Gleick says that the opponents of online copyright tend to be people who have never tried to make a living from their writing. "The writing of professors is subsidized. The new millions of impromptu Web publishers have a different mentality, too; their work is rarely for pay, and they are delighted if it is noticed and passed along." Dismissing the slogan "Information wants to be free" as equivalent to the sentences "I want information to be free ... and I want gasoline to be free," Gleick says the best way to promote knowledge is to let people profit from the intellectual products they create. (New York Times Magazine 4 Aug 96 p16) SCIENTOLOGY AND NETCOM SETTLE COPYRIGHT SUIT An out-of-court settlement closes the lawsuit the Church of Scientology brought against Netcom, an Internet services provider, after an individual hostile to the church posted to a Netcom private bulletin board a document for which the Church claimed to hold a copyright. In late 1995 a federal judge ruled that Netcom and the bulletin board operator did not themselves violate the Church's copyright but may have contributed to the infringement by failing to remove the documents once they were told that copyrighted documents had been posted on their systems. Netcom will now warn its subscribers not to "unlawfully distribute the intellectual property of others." (Investor's Business Daily 6 Aug 96 A9) Internet personality Howard Rheingold says: "I would hate to see Netcom to be put in the position of having to police the material posted on its service. You can sue a publisher for libel but of course you shouldn't be able to sue the bookstore." (Washington Post 5 Aug 96 A11) COMPAQ TARGETS WORKSTATION MARKET No. 1 PC maker Compaq is getting into the workstation business, posing a direct challenge to companies such as Sun and Hewlett-Packard, which dominate the market. Compaq's workstations, which will be unveiled later this year, will be based on Pentium Pro chips from Intel and Microsoft's Windows NT software. Sun, HP, Digital Equipment, Silicon Graphics, and IBM currently use different, proprietary chips in their workstation designs. Compaq's latest move is expected to put pressure on other workstation manufacturers to lower their prices and make machines that are easier to integrate into office systems that already use Intel-based PCs. The company has not said how much these machines will cost. (Investor's Business Daily 6 Aug 96) MICROSOFT HOPES ITS TALISMAN WILL WORK MAGIC Some industry observers are saying that Microsoft's two-year microchip research project is bearing fruit, in the form of Talisman -- a chip that delivers fast, realistic graphics using a $300 PC circuit board. The new chip will be marketed as a way of enabling PC owners to produce graphics similar in quality to those produced by 150,000 Silicon Graphics workstations, resulting in a proliferation of animated, online, storefront and other applications. One research industry president calls Talisman "fabulous," and predicts it will inspire "killer" applications by 1998. (Wall Street Journal 6 Aug 96 B4) INTEL FOCUSES ON HYBRID APPLICATIONS Intel is turning toward hybrid applications to bridge the gap between today's computer network capacity and the futuristic expectation of unlimited bandwidth. "The myth of the Internet is that there is plenty of bandwidth," says Intel CEO Andy Grove. "The hybrid application is what we will use for a long time to overcome the limits of the available bandwidth." Such applications involve, for instance, ways of compressing and downloading data via telephone lines and then storing that data on a PC hard drive for accessing later. In addition, Intel is developing Intercast technology, which uses the television signal's vertical blanking interval to transmit a limited amount of digital data. (Wall Street Journal 6 Aug 96 B12) IBM AND MERCEDES TEAM UP ON AUTO ELECTRONICS IBM and Mercedes-Benz will jointly work on development of an advanced electronics system to monitor and control such automobile systems as lights, engine, and climate control for the car's interior. The plan calls for drivers to be connected eventually to the Internet for access to electronic mail, driving condition reports, and road directions. (USA Today 6 Aug 96 1B) "SMART PHONE" COMPANIES MERGE TO FORM TRITECH CORP. U.S. Order Inc. and Colonial Data Technologies Corporation are merging to form Tritech Corporation, which will pursue a strategy of providing a "complete system," including phones, networks and services. Tritech's chief executive officer says: "There are a lot of people saying, 'Here is a screen phone, go do something with it. But a market doesn't just need hardware, it needs end-to-end solutions." (New York Times 6 Aug 96 C2) CAIRO TO HAVE "ANNUITY" UPGRADE MODEL Microsoft says that its next-generation object-oriented operating system, code-named Cairo, will follow an "annuity" upgrade model rather than rely on rolling out all-in-one upgrade packages, such as Windows 95. The company also plans to start promoting annuity programs for various other products. (Computerworld 5 Aug 96 p93) IBM PLANS $2 BILLION INVESTMENT IN CHINA Between now and the end of the decade IBM will invest $2 billion in China, a country in which it now has 11% of the PC market. (Computer Industry Daily 6 Aug 96) A PC FOR THE LIVING ROOM Asked about the new Simply Interactive Personal Computer (SIPC) that Intel and Microsoft are working on, Intel chief executive Andy Grove explains that "it's the entertainmentization of the personal computer: a set of design concepts that move the personal computer to the center of the living room. It's only confusing because it comes at the same time as network computer stuff. It helps to remember that PCs in homes are in the den and in the study, not in the living room. What we are asking is: 'How do we get these things in the living room?'" (Red Herring Aug 96 p82) MICROSOFT, NETSCAPE ESCALATE BROWSER BATTLES Microsoft and Netscape Communications have extended their browser war to two fronts: the marketplace and the courtroom. Lawyers for Netscape have complained to the Justice Department over licensing restrictions that Microsoft places on its Windows NT operating system, and Microsoft lawyers last week sent a letter to Netscape demanding that it stop distributing a price comparison between the two companies' Web server programs. "Netscape has already caused irreparable harm to Microsoft, and further publication of the deceptive information will only compound the damage," says the letter. "This is their lawyers trying to intimidate a small company," responds Netscape's attorney. "It's just very strange conduct by a monopolist." (Wall Street Journal 7 Aug 96 B5) MCI TESTS NEWS DISTRIBUTION VIA COMPUTER MCI is funding trials at 20 television stations around the country of a system that allows NBC to distribute TV news and program promotion spots to its affiliates by computer. The system is designed to replace satellite feeds for most purposes, and is being tested at 20 stations. MCI is now trying to persuade other television networks to move to computer-based distribution and retrieval of news video. ''It's literally video on demand. I can call it up as available,'' says a news director at one NBC affiliate station. (Investor's Business Daily 7 Aug 96) AT&T SELLS GAME SERVICE TO AOL AT&T has sold its ImagiNation Network online game service to America Online for an undisclosed sum, rumored to be less than the $40 million that AT&T paid for it in 1994. The network allows game enthusiasts to play each other online, regardless of geographic location. "While gaming is an attractive segment, it's not one that's consistent with our strategy," says an AT&T spokesman. ImagiNation plans to introduce a newly packaged Windows 95- compatible collection of games later this year. (Washington Post 7 Aug 96 F2) MICROSOFT SUES IRS FOR EXPORT TAX BENEFITS Microsoft has filed a lawsuit against the Internal Revenue Service, in an effort to recoup about $19 million paid as part of the company's 1990 and 1991 tax returns. The legal action ups the ante in the software industry's bid for favorable treatment under a 1984 law that allows businesses to set up foreign sales corporations, hereby exempting 15% of their export income from U.S. taxes. Similar industries, including exporters of films, tapes and records, have benefited from the 1984 provision. The software industry has said it would save about $200 million over five years if it were allowed the same protections. (Wall Street Journal 8 Aug 96 B4) AOL GOES AWOL America Online went off-line yesterday, stranding more than 6 million subscribers in the real world of snail mail and "sneakernet," as one consultant who depends on e-mail described it. The AOL computers were shut down at 4:00 a.m. for routine maintenance, and then were unable to resume function at the scheduled 7:00 a.m. power-up. While some people took the outage with a dose of philosophy, others predicted this event was the harbinger of more trouble in cyberspace. "Clearly the longer-term goal has to be for the Internet to become more like the phone system is today," in terms of reliability, says a director for AT&T's WorldNet service. "The likely scenario is increasingly calamitous breakdowns," predicts an industry columnist. Meanwhile, AOL CEO Steve Case expressed his regret over the inconvenience via conventional news release. (Washington Post 8 Aug 96 A1) PHONE AND CABLE CONVERGENCE IN CANADA Canada's Cabinet endorsed a policy allowing cable and phone companies to compete, but phone companies seem less excited about being in the cable business than they were four years ago, and cable companies seem to be concluding that the phone business is not as simple as they thought. CLINTON ON EDUCATION/TECHNOLOGY JOINT VENTURES In an election-year visit to Silicon Valley, President Clinton gave a speech at a San Jose middle school praising the joint efforts of educators and high- tech business leaders to reform education. All participating schools in the "Challenge 2000" project are required to integrate technology into their plans, which in many cases include the use of computer networking to allow students to communicate with mentors in the business community. (San Jose Mercury News 8 Aug 96) LOOK DOWN AT YOUR COMPUTER Health writer Jane Brody says you should position your computer so that the center of the screen is four to nine inches below eye level and a little farther away than the normal reading distance, and should keep reference material close to the screen, perhaps on a screen mount. Wipe the screen often with an antistatic cloth; minimize glare on the screen; and reduce the brightness of the room lighting or use a three-sided computer or filter. (New York Times 7 Aug 96 B6) CYBERGANGS The head of the gang task force for the Arizona Department of Public Safety reports that a Web site established in Detroit offers a how-to guide for gangster wannabes and is urging gang members everywhere to unite under its umbrella to form the first cyberspace gang. The official says: "Now it's in your home, your living room, your den... Unfortunately, these guys can talk about anything they want and there's nothing law enforcement can do about it." (Atlanta Journal-Constitution 8 Aug 96 F3) Edupage is written by John Gehl (gehl@educom.edu) & Suzanne Douglas (douglas@educom.edu). Voice: 404-371-1853, Fax: 404-371-8057. Technical support is provided by the Office of Information Technology, University of North Carolina. EDUPAGE is what you've just finished reading. To subscribe to Edupage: send a message to: listproc@educom.unc.edu and in the body of the message type: subscribe edupage Marvin Minsky (assuming that your name is Marvin Minsky; if it's not, substitute your own name). ... To cancel, send a message to: listproc@educom.unc.edu and in the body of the message type: unsubscribe edupage... Subscription problems: educom@educom.unc.edu. EDUCOM REVIEW is our bimonthly print magazine on learning, communications, and information technology. Subscriptions are $18 a year in the U.S.; send mail to offer@educom.edu. When you do, we'll ring a little bell, because we'll be so happy! 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