Nov 26, 2008 (Happy Thanksgiving, Pilgrim)

Sad to report that House Commerce Committee Chairman John Dingell (D-MI) was admitted to a Washington hospital Tuesday after feeling "discomfort." He was fully conscious and went to the hospital as a precautionary measure. Chairman Dingell had knee replacement surgery in October and has been using a wheelchair.
http://benton.org/node/19329

BENTON'S COMMUNICATIONS-RELATED HEADLINES for WEDNESDAY NOVEMBER 26, 2008 (HAPPY THANKSGIVING)

Telecom policy activity heats up next week, see http://benton.org/calendar/2008-12 Headlines will return MONDAY, DECEMBER 1, 2008. Enjoy the holiday.

THE TRANSITION
   It's Time for a Wiki White House
   Transition and Economy Drive News Coverage
   Waxman May Push Commerce Committee's Oversight Role

BROADCASTING/CABLE
   Longform ads replace kid fare on Fox
   Nielsen: About 8 Million Homes Still Unready For DTV Switch
   NAB Urges NTIA To Explore Other Delivery Options For DTV Coupons
   New Set Buyers Believe HD Signals Come With DTV Transition
   NAB TV Board: Americans Deserve Free Access to BCS Football Games
   Radio's Revenue Falls Even as Audience Grows
   Small Cable Ops Ask FCC To Retain Access Conditions
   Johnson, Ion To Offer Black TV Channel
   Senators pushing for return of Fairness Doctrine

INTERNET/BROADBAND
   What's an ISP? (That's not a trick question)
   Two bids lodged for Australia broadband network
   Google's U.S. search share edges upward

THE ECONOMY
   Consumers Cutting Back On Premium Cable Service, Gadgets
   E-commerce posts first ever year-over-year decline

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THE TRANSITION

IT'S TIME FOR A WIKI WHITE HOUSE
[SOURCE: The Huffington Post, AUTHOR: Don Froomkin]
[Commentary] Barack Obama's campaign promise to use the Internet to "create a transparent and connected democracy" will be put to the test when he launches a new White House Web site on January 20. On that day, the Bush administration's stodgy, wheezing version of whitehouse.gov will be carted off to the National Archives in its entirety, leaving precisely no legacy - and no limits. Obama is already being touted as the first Internet president, but the Internet is about more than e-mail blasts and rallying the likeminded. If he and his team truly embrace the paradigms of the modern Internet -- as defined by blogs and YouTube, Facebook and Google, instant messaging and crowdsourcing, wikis and reader comments -- Obama's whitehouse.gov will bring unprecedented accountability to the White House. It will offer a vastly better way for the American people to relate to their government -- and maybe even learn to trust it again.
http://benton.org/node/19328
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TRANSITION AND ECONOMY DRIVE NEWS COVERAGE
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
According to the News Coverage Index for Nov. 17 ­ 23, a weekly study of the media agenda from the Pew Research Center's Project for Excellence in Journalism, the country's financial crisis and the auto industry's troubles -- taken together -- amounted to the largest topic of media coverage for the week. If the economy was the crisis of the moment, the transition to a new Presidency was the context in which the events unfolded. Overall, indeed, the transition filled 23% of the media newshole, about the same amount as it had been the previous week (at 24%). But if the story of the transition began with signals from Obama about the economic crisis, more of the week was dominated by leaks involving his possible appointments. There even were stories by the end of the week about how the leak-free Obama camp was now leaking.
http://benton.org/node/19327
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WAXMAN MAY PUSH COMMERCE COMMITTEE'S OVERSIGHT ROLE
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
Under the leadership of Rep. Henry Waxman (D-CA), the House Energy and Commerce Committee is expected to increase emphasis on government accountability and pursue a transparency agenda. To start that off, high-tech and telecommunications industry insiders are pointing to an investigation into the FCC the panel initiated in January. The FCC probe, which was led by Energy and Commerce Oversight and Investigations Subcommittee Chairman Bart Stupak (D-MI) is complete and a report will be issued in the coming weeks, an aide said. "To the extent that Dingell started this FCC inquiry, I think Waxman will finish it," Public Knowledge President Gigi Sohn said, adding the agency is "overripe for reform." Many have wondered whether Waxman's chairmanship will lead to a changing of the guard on key subcommittees. One high-tech industry source indicated ousted panel chairman Rep. John Dingell (D-MI) may yearn for a larger role on the subcommittees for Telecommunications and the Internet, led in the 110th Congress by Rep. Edward Markey (D-MA), the Energy and Air Quality Subcommittee, chaired by Rep. Rick Boucher (D-VA), or Health, led by Rep. Frank Pallone (D-NJ).
http://benton.org/node/19326
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BROADCASTING/CABLE

LONGFORM ADS REPLACE KID FARE ON FOX
[SOURCE: Variety, AUTHOR: Michael Schneider]
In an unprecedented move, Fox will program two hours of longform commercials on Saturday mornings starting in January. That's believed to be the first time a major network has slated full-blown, program-length advertisements on its schedule. Long term, the net hopes to seal deals with major marketers to create more traditional-looking programming that weaves in advertising messages. Move follows an out-of-court legal settlement with children's TV producer 4Kids, which had been programming Fox's Saturday morning kids block under a time-buy agreement. Under the settlement, Fox and 4Kids are terminating their deal early, at the end of December; 4Kids continues to buy time on the CW, where it programs that network's Saturday morning slate as well. Fox Affiliates Associates board of governors chairman Brian Jones said he supported the network's decision to program the infomercials -- but added he believed the move was a "short-term type of answer." Jones said he did appreciate the return of two hours on Saturday morning. Stations have been looking for more flexibility to broadcast their government-mandated weekly three hours of educational/ informational programming. Because the 4Kids block only programmed 30 minutes of educational fare, affiliates had to squeeze the other 2½ hours in during the week. "A lot of us are wanting to expand our morning news presence during the week," Jones said. "This allows us to move that E/I programming to the weekend to facilitate more local news."
http://benton.org/node/19325
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NIELSEN: ABOUT 8 MILLION HOMES STILL UNREADY FOR DTV SWITCH
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Nielsen reports that the percentage of TV households that are completely unready for the DTV switch dropped to 7.4% in November from 7.7% in October. But that still represents about 8 million homes that still receive their TV exclusively over the air and do not yet have a digital TV or a converter box that would allow them to continue receiving a full-power TV signals. Hispanic households continue to trail the population in general, with 12.4% completely unready, and the needle has not moved since October, when the percentage was exactly the same. The readiest age group are those households headed by someone over 55. Only 5.9% of those households are completely unready, compared to 7% where the head of household is 35-54 and a whopping 10.6% for those headed by viewers under 35.
http://benton.org/node/19324
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NAB URGES NTIA TO EXPLORE OTHER DELIVERY METHODS FOR DTV COUPONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
National Association of Broadcasters President David Rehr has sent a letter to National Telecommunications & Information Administration acting head Meredith Baker suggesting that the United States Postal Service may not be quick enough to get digital-to-analog converter box coupons out to consumers as the days dwindle down to the DTV transition date of Feb. 17, 2009. NTIA has said that viewers need to apply for the coupons by the end of the year to be able to buy and try them by the cut-off date, given the six-week turn-around time for requesting, receiving and redeeming the coupons, then hooking up the boxes. NAB wants NTIA to shave some time off the delivery factor in that equation by encouraging IBM, which is handling the coupon program for NTIA, to expedite the process. "As you also know, the law does not require that any coupons be mailed via standard third-class U.S. Postal Service mail, as is the current practice by your contractor, IBM," said Rehr. "Accordingly, America's broadcasters respectfully request that your agency and IBM do whatever necessary to ensure that all coupons be mailed in the most expeditious manner possible nationwide starting as soon as possible."
http://benton.org/node/19323
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NEW SET BUYERS BELIEVE HD SIGNALS COME WITH DTV TRANSITION
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
New buyers of high-definition TVs still are laboring under the misperception that the sets will deliver enhanced signals along with the digital TV transition next year, or feel they can't afford HD subscriptions after the initial outlay for the television, according to a newly released survey from Frank N. Magid Associates. Among the 12 % of U.S. households who purchased an HD set in the last year, 41% still need to acquire an HD service from cable or satellite companies. By comparison, 80% of homes who have owned an HD set for a longer period, now receive some HD signal source, according to the poll. Moreover, the majority of these homes have taken steps to prepare for the Feb.17 digital TV transition. Because of this misperception, cable and satellite operators have a business opportunity and should anticipate a rush in HDTV orders concurrent with the transition next year, the research firm said.
http://benton.org/node/19322
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NAB TV BOARD: AMERICANS DESERVE FREE ACCESS TO BCS FOOTBALL GAMES
[SOURCE: National Association of Broadcasters, AUTHOR: ]
The National Association of Broadcasters Television Board of Directors adopted a resolution advocating support for Americans' continued free access to major televised sporting events. "Broadcasters continue to support the rights of all Americans to have free access to telecasts of major sporting events, particularly those of publicly funded educational institutions," the resolution states. "The NAB Television Board of Directors hereby directs NAB staff to work with policymakers to educate them on the importance of ensuring that no segments of society are disenfranchised from this highly valued programming." Last week, the Bowl Championship Series announced that most major college football bowl games would no longer be available on free broadcast television and would instead be televised on ESPN, a sports cable network available only to pay-TV subscribers. According to published news reports, Fox Television, which had been paying $80 million annually for the BCS broadcast rights, was outbid by the pay-TV network.
http://benton.org/node/19321
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RADIO REVENUE FALLS EVEN AS AUDIENCE GROWS
[SOURCE: New York Times, AUTHOR: Stephanie Clifford]
Can radio save itself? Listeners are diverted by iPods and Internet and satellite radio. Companies are loaded with debt. Advertisers are heading to television or the Web — and the advertisers that have continued to advertise on radio, like auto dealers and retailers, are being hit by the economic crisis and pulling back. And even though the audience for broadcast radio is actually growing, stations cannot seem to increase their revenue. Radio advertising was down 10 percent last month from October 2007, according to the Radio Advertising Bureau, the 18th consecutive month of declines. And the third-quarter numbers are dismal. Problems in the radio industry have been piling up for years, said Marci L. Ryvicker, an analyst at Wachovia Capital Markets. In the 1990s, radio companies consolidated, then began increasing the ad time available. "They started to fight for share, instead of being proactive and thinking of new ways to generate revenue," Ms. Ryvicker said. Then, when advertisers decreased their spending around 2001, radio stations were stuck with too much time and too few advertisers. "There was too much inventory out there, and rates kept going down, down, down," Ms. Ryvicker said. Recent years have not changed the fortunes of radio. Many companies borrowed money to buy back their stock, leaving them saddled with debt. And the industries that supported radio advertising — finance, retail and autos — have all been particularly hard-hit by the current economy.
http://benton.org/node/19332
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SMALL CABLE OPS ASK FCC TO RETAIN ACCESS CONDITIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The American Cable Association, the National Telecommunications Cooperative Association, and the association representing small telecom carriers sent a letter to the Federal Communications Commission asking the Commission not to programming access conditions currently placed on News Corp., saying they continue to be in the public interest. They argued, ""Removing the conditions now would allow News Corp. to engage in the types of abusive market practices that force smaller operators and their subscribers to pay higher prices for programming." News Corp. asked the FCC back in September to remove the conditions because it had sold DirecTV to Liberty and the conditions had been imposed as part of News Corp.'s purchase of DirecTV in 2003.
http://benton.org/node/19320
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JOHNSON, ION TO OFFER BLACK TV CHANNEL
[SOURCE: tvnewsday, AUTHOR: Harry Jessell]
Robert Johnson, the billionaire founder of the Black Entertainment Television, is looking to get back into television is a big way by programming at least one channel on the Ion Media's stations under unique "share-time" licenses. According to Federal Communications Commission filings, Ion and Johnson are forming Urban Television LLC, a venture owned by Johnson (51 percent) and Ion (49 percent), and asking the FCC to grant Urban share-time licenses that would enable Urban to broadcast its programming on a digital channel of Ion stations in 42 markets. Johnson and Ion contend that the share-time license would entitle the Urban channel to must carry in all markets.
http://benton.org/node/19319
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SENATORS PUSHING FOR RETURN OF FAIRNESS DOCTRINE
[SOURCE: Reuters, AUTHOR: Paul Bond]
Bond's inaccurate look at the current debate over the Fairness Doctrine. Read at your own peril.
http://benton.org/node/19331
Help us count the inaccuracies here
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INTERNET/BROADBAND

WHAT'S AN ISP? (THAT'S NOT A TRICK QUESTION)
[SOURCE: NetworkWorld, AUTHOR: Johna Till Johnson]
[Commentary] What, exactly, comprises an ISP? Is it a telco that also offers Internet connectivity? A wireless provider? What about a content provider? The answers have far-reaching consequences for policy issues like universal broadband and Network Neutrality. Take, for example, Amazon WhisperNet, the Internet connection between the company's e-book, Kindle, its website and the rest of the Net. Whether intentionally or not, Amazon has now created the first free coast-to-coast consumer ISP. Amazon's "Internet service" makes it extraordinarily easy to connect to Amazon.com — and extraordinarily cumbersome to get to, say, BarnesandNoble.com. That is, Amazon's an ISP that unabashedly favors one content source (Amazon) over another (Barnes and Noble). And by doing so it violates the fundamental premise of net neutrality — which is not to prioritize content from source A over content from source B. So if you support net neutrality, you'll need to tell Amazon to close up shop, at least for the Kindle. Bottom line: The Internet continues to evolve. Let's hope that the next administration's better than the previous one at understanding these changes.
http://benton.org/node/19318
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TWO BIDS LODGED FOR AUSTRALIA BROADBAND NETWORK
[SOURCE: Reuters, AUTHOR: Adrian Bathgate]
Australia has slower and more expensive Internet access than many developed countries and officials have warned it may become less competitive without faster, nationwide coverage. So the country adopted a plan to build the National Broadband Network (NBN) with $3 billion coming from the government. Australia's two largest telecommunications firms -- Telstra, the largest phone company, and main rival Optus, owned by Singapore Telecommunications and backed by a consortium called Terria -- lodged bids on Tuesday to build the $6 billion network. Telstra, a former state monopoly which controls most of Australia's telecommunications infrastructure, pledged to spend A$5 billion to build the network. The Terria consortium has been leading calls for Telstra to be forced to split its networks business from its retail and wholesale arms to promote competition.
http://benton.org/node/19333
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GOOGLE'S US SEARCH SHARE EDGES UPWARD
[SOURCE: C-Net|News.com, AUTHOR: Stephen Shankland]
United States Internet users conducted 2 percent fewer searches in October 2008 than the year earlier, but used Google more often for those searches. The total number of searches decreased 2 percent to 7.78 billion for the U.S., Nielsen said. Google's searches increased 8.1 percent to 4.76 billion for the month, giving the company a 61.2 percent share of the market.
http://benton.org/node/19315
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THE ECONOMY

CONSUMERS CUTTING BACK ON PREMIUM CABLE SERVICE, GADGETS
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
Six in 10 consumers intend to cut spending in at least one area of communications and entertainment this holiday season, but purchases of broadband access seems the least likely area for cuts, according to a survey by Oliver Wyman, an international management consulting firm. If that consumer sentiment prevails through the next year, the drop in spending in the entertainment and communications segment could be in the 5% to 6% range. Sales of home computers and laptops, music players and digital music players are most threatened as 50% of those polled said they would spend less on these devices next year. That equates to an overall 10% drop in sales, according to the consulting firm. However, there is still an appetite for next generation devices, including Blu-ray disc players, smartphones and high-definition television sets. The firm advised against broad discounts, stating the amount of "on the fence" buyers that would be attracted would not be enough to compensate for losses from those who are inclined to buy at full price. The good news for pay TV suppliers: 63% of the adults said they will spend about the same next year on broadband Internet access, mobile phone plans, pay TV and subscriptions to services such as Netflix. Only 28% said they would spend less, translating to a 5% drop in sales across the sector.
http://benton.org/node/19317
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E-COMMERCE POSTS FIRST EVER YEAR-OVER-YEAR DECLINE
[SOURCE: C-Net|News.com, AUTHOR: Dawn Kawamoto]
Online shoppers put a stranglehold on their wallets in the first several weeks of November, marking the first historic decline in e-commerce sales, according to Market researcher ComScore. Online shopping declined 4 percent during the first 23 days of November, compared with a comparable time period last year. During the first 23 days of the month, ComScore said online retailers rang up a total of $8.19 billion in sales.
http://benton.org/node/19316
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