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Invasion of the Corporate Body-Snatchers
Cal State Forging Partnership With 4 High-Tech Firms
Link upsets some in academia
Monday, December 1, 1997 · Page A1
©1997 San Francisco Chronicle
Pamela Burdman, Julia Angwin, Chronicle Staff Writers
STATE
California State University is on the verge of striking a controversial deal
with Microsoft and three other high-tech companies to
wire the system's 22 campuses for the next century.
The proposed venture, due to start in January, would join Microsoft, GTE,
Fujitsu and Hughes Electronics in a private consortium
with CSU for at least 10 years, taking the world's largest university system
further down the road of corporate partnership than any
public university has ever gone.
CSU leaders view the arrangement as a creative solution for a university
facing deep cutbacks in state money and ever-increasing
numbers of students. But many professors and students worry that it amounts
to a corporate takeover of academia.
Wire up, plug in, and log on: Technology on The Gate.
``Our worst fear is that the corporations could put some type of a chill
over the university,'' said Terry Jones, president of the CSU
faculty union.
Professors expect intellectual freedom and a collegial work environment.
Some are wary that the corporations would dictate things
like course requirements, the usage of software and hardware, and the
publication of course materials, Jones said.
As online courses come into vogue, some facultyare also afraid of being
forced to cede control over the university's educational
direction to high-tech companies.
STUDENTS, FACULTY TROUBLED
Student leaders are troubled as well.
``Our big concern is that students are being known in the plans as
`consumers,' '' said Monica Pacheco, student body president at
California State University at Hayward. ``We're here for more than
consuming. We're here to learn and enhance ourselves.''
The debate over the so-called California Educational Technology Initiative
also plunges the campuses into the battle over high-
tech standards between Microsoft and competitors such as Netscape
Communications and Sun Microsystems.
Already, faculty on one campus, CSU Chico, say the installation of Netscape
Communicator, a Web browser and e-mail program,
has been suspended because of the pending initiative.
According to the minutes of a technology policy committee meeting, ``the
expectation is for all campuses to move to Microsoft.''
Officials from the companies and CSU insist that such a scenario will not
occur under the initiative, but they have not released the
latest details of the plan. $300 MILLION COMPANY
According to early drafts, CSU and the four corporations would form a new
company that would pour $300 million into building and
maintaining computer and telephone networks on all campuses. GTE alone is
ponying up $36 million in startup funds.
CSU officials say they are seeking a controlling interest in the
partnership, but the exact financial arrangements have not been
spelled out.
So, have you got a point of view or what? Tell us what you think.
The new company would be the exclusive provider of the campuses'
``baseline'' technology, ensuring students and professors
easy access to high-speed communications networks by the year 2000.
The firm would also gain access to a potential market of more than a million
customers -- including students, professors, staff and
CSU alumni.
The company hopes to generate revenues as high as $3 billion over 10 years
by selling services such as computer support, pager
accounts and Internet access to the public. Whether or not students would be
charged for Internet and computer access hasn't
been worked out, according to Don M. Scoble, San Francisco State vice
president for business and finance and a member of the
negotiating team.
The draft proposal also called for the new consortium to offer courses, but
officials say that idea has been dropped for now.
The plan lets CSU satisfy technology needs that the Legislature isn't able
or willing to fund. In the next 10 years, an additional half
a million Californians are expected to need a college education.
``If I had my druthers, I think it's something the state should pay for,''
said Robert Corrigan, president of San Francisco State. ``But
as a president who can't get the money either from the students or from the
state, I'm driven into working with the corporate sector.''
More than anything, Microsoft's role in the deal is sending up red flags on
many campuses. The Redmond, Wash.-based software
giant is being sued by the U.S. Department of Justice for alleged
monopolistic practices. ``In a way, it's a transfer of funds from the
California taxpayers to the shareholders of Microsoft,'' said Kenneth Peter,
a faculty leader at San Jose State. ``That probably
won't be terribly popular in Silicon Valley.''
NETSCAPE REACTS
One of the companies that has the most to lose from Microsoft's involvement
is Mountain View- based Netscape, which makes rival
Internet software and often gives free copies to schools.
``Microsoft is locking out other vendors from donating the software,'' said
Peter Harter, a Netscape attorney. ``This is a few
companies trying to take away taxpayer dollars and lock down the education
system.''
Microsoft officials balk at the idea that the company is doing anything but
satisfying market demand.
``We try to provide the best solution at the direction of our customer,''
says company spokesman Greg Shaw. ``As higher ed
continues to look for ways of empowering students and faculty with PC
technology, we obviously want to be there.''
CSU officials say some critics are being paranoid.
``The concern about Microsoft is highly exaggerated,'' said Scoble. ``Even
though their name appears on the proposal, they have
not been an active participant in the discussions.''
In the past two months, CSU officials have held meetings at 21 of 22
campuses to explain the plan to concerned faculty, students
and staff. Officials from the companies also plan to address a large group
of students on December 6 in Long Beach.
Last week, about 50 faculty, staff and students gathered at Cal State
Hayward to ask why they haven't seen more details.
``This proposal seems to be quite vague and general,'' said professor Emily
Stoper. ``I'm concerned that there's no business plan.''
In the absence of details, professors are using their imaginations. ``If
we're not careful, we'll end up being the training wing of large
corporations at taxpayer expense,'' said anthropology professor Glynn Custred.
CSU assistant vice chancellor Tom West gave some specifics at the Hayward
meeting -- such as reassuring faculty that CSU is not
liable for the debt if the new company goes bust. But many of his comments
contradicted the draft proposal that has been
circulating on campuses.
FINAL PROPOSAL TO COME
The final proposal will be available by next week, West said.
The deal is expected to be signed before the CSU trustees meet in late
January. Most of the review period, then, coincides with
campuses' Christmas break -- another source of contention.
Faculty senates on at least five campuses are asking for more time.
Reese Erlich, a lecturer at Cal State Hayward, asked why the deadline for
signing the contract can't be extended.
``What's the rush?'' he said.
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