Benton's Communications-related Headlines for 3/29/04

BROADBAND/INTERNET
Bush Sets Internet Access Goal
"Four Freedoms" Enough?
Four Technologies Move Toward Starting Gate
Click The Vote
E-Commerce Report: Broad Gains in Online Shopping

CONTENT
Update: Indecency and Media Ownership Link
A La Carte's Pushed Up Hill=85
Viacom Plans a Gay Channel, But the Reception Isn't Clear

TELEVISION
Aides: DTV Scheme Scary to Congress
Leisure Pursuits of Today's Young Man

TELECOM
Will Congress Have to Supply the Answer?

QUICK HITS
Comcast Hires IDI
'Dirty Driving' Laws Proposed

Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. Headlines are compiled by=20
Kevin Taglang (ktaglang( at )etpost.net) -- we welcome your comments.

BROADBAND/INTERNET

BUSH SETS INTERNET ACCESS GOAL
On Friday, President Bush announced he is setting a national goal of=20
"universal, affordable access for broadband technology by the year 2007."=20
His announcement seems to be a reaction to an earlier proposal from Sen=20
John Kerry (D-MA) that called for "spurring the growth of new industries=20
like the broadband technology that will dominate the future." President=20
Bush said, "This country needs a national goal for broadband technology,=20
for the spread of broadband technology. Then we ought to make sure as soon=
=20
as possible thereafter, consumers have got plenty of choices when it comes=
=20
to purchasing the broadband carrier. See, the more choices there are, the=20
more the price will go down." The President also stressed that access to=20
broadband technology not be taxed. President Bush spoke only of the=20
availability of the service and did not say how many households=20
could actually tap into it. He also did not propose tax credits or other=20
ways to make the service available to poor households.
FCC Chairman Michael Powell responded with the following statement: "The=20
president has set out a bold vision for broadband investment and deployment=
=20
over the next four years. I look forward to working with my commission=20
colleagues, Congress and the administration to deliver on this vision for=20
the American people. Universal and affordable access to broadband is vital=
=20
to the health and future growth of our economy."
[SOURCE: Washington Post (3/27), AUTHOR: Mike Allen]
http://www.washingtonpost.com/wp-dyn/articles/A28187-2004Mar26.html
(requires registration)
See also
Reuters: Bush pushes ubiquitous broadband by 2007=20
http://news.com.com/2100-1028-5180235.html?tag=3Dcd_top

"FOUR FREEDOMS" ENOUGH?
Speaking to audience of Capitol Hill staff at a forum co-sponsored by the=20
Consumer Federation of America and the Stanford Law Center for Internet and=
=20
Society, FCC Commissioner Michael Copps and Stanford Professor Lawrence=20
Lessig voiced support for FCC Chairman Michael Powell's "four Internet=20
freedoms:" freedom to access content, use applications, attach devices and=
=20
obtain service plan information (see=20
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-243556A1.pdf). Prof=20
Lessig said first three freedoms are integral to the =93network neutrality=
=94=20
movement; Commissioner Copps said he was pleased with the proposal, even=20
though he favors a more proactive approach. Chairman Powell's speech was=20
hailed as an important first step.
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)

FOUR TECHNOLOGIES MOVE TOWARD STARTING GATE
WiFi is the rage now, but by 2005, there are new technologies that may make=
=20
wireless Internet connections cheaper, faster and farther reaching. 1)=20
WiMax stations will be able to send and receive signals up to 30 miles away=
=20
as compared to the WiFi hotspots of 300 feet. The service is hoped to be a=
=20
competitor for DSL and cable, costing less than $50/month. 2) 802.16e is an=
=20
extension of WiFi that allows users to connect to Internet while traveling=
=20
at "vehicular speeds." 3) 802.11n will make available higher-speed local=20
networks, possibly allowing businesses to forgo the burden of laying and=20
maintaining Ethernet cabling throughout a building. 4) Ultrawideband is=20
intended primarily for in-home use to connect computers, stereos and TVs to=
=20
one another without wires.
[SOURCE: USAToday, AUTHOR:Amit Asaravala]
http://www.usatoday.com/usatonline/20040329/6055864s.htm
See Also
Wi-Fi signals turn up in some unexpected places=20
http://www.usatoday.com/usatonline/20040329/6055861s.htm
It's here, it's there and soon everywhere Wi-Fi connections spreading so=20
rapidly, you may never be out of touch
http://www.usatoday.com/usatonline/20040329/6055862s.htm

CLICK THE VOTE
Power in the networked world is diffused. What does that mean for politics?=
=20
A special report in this week's BusinessWeek tries to figure out the value=
=20
of Meetups, blogs, Internet commercials and online donations. In a=20
networked political world, much of the power likely will move from the=20
candidates to the groups that surround and sustain them. Social theorist=20
Howard Rheingold predicts that power in the Information Age will coalesce=20
around groups of networked people who organize behind a single idea, from=20
politics to fashion, and connect using the Internet and cell phones. He=20
calls them Smart Mobs, and he sees them starting to take shape. "If you can=
=20
match these volunteers, who have self-organized at no cost, with the task=20
that needs to be done, that could be a powerful combination," Rheingold=20
says. Howard Dean's campaign is still considered a model. For example, Gov=
=20
Dean's entire Net outlay, including salaries, barely topped $1 million.=20
That means it brought in nearly a dollar for every nickel spent -- a far=20
better return than the 65% average take from a traditional rubber-chicken=20
banquet. What's more, online fund-raising takes no time from the candidate,=
=20
and it brings in a slew of small contributors who don't expect favors in=20
return. See the URLs below for more on elections in the Internet Age.
[SOURCE: BusinessWeek, AUTHOR: Stephen Baker]
http://www.businessweek.com/magazine/content/04_13/b3876125.htm
"A Major Change in the Political Equation" by Howard Rheingold=20
http://www.businessweek.com/technology/content/mar2004/tc20040323_7536.htm
Web Politics: "It's Just the Beginning"=20
http://www.businessweek.com/technology/content/mar2004/tc20040323_4030.htm
The Business of Online Campaigns=20
http://www.businessweek.com/technology/content/mar2004/tc20040323_8062.htm

E-COMMERCE REPORT: BROAD GAINS IN ONLINE SHOPPING
The Pew Internet and American Life Project will release a study this week=20
finding that two-thirds of Internet users now shop online. "It's a=20
milestone in the norming of e-commerce," said Lee Rainie, director of the=20
Pew project. "What's striking about this is that the percentage of Internet=
=20
users who do shopping has been growing, even as the Internet population=20
continues to grow. So the increase is doubly important because it's a=20
bigger slice of a bigger pie." The Pew data also suggest that the=20
mainstreaming of Internet commerce is nearly complete. Statistics on gender=
=20
and ethnicity among online shoppers mirror those of off-line shoppers, Mr.=
=20
Rainie said. Half of the people who live in households with incomes of=20
$50,000 or less have now shopped online. There's a good deal more at the=20
URL below.
[SOURCE: New York Times, AUTHOR: Bob Tedeschi]
http://www.nytimes.com/2004/03/29/technology/29ecom.html
(requires registration)

CONTENT

UPDATE: INDECENCY AND MEDIA OWNERSHIP LINK
We've all seen watch Janet Jackson can do to liven up a policy debate, but=
=20
it is radio content that has become the lightning-rod family-entertainment=
=20
issue of the 2004 election. And opponents of media consolidation have found=
=20
the indecency issue is a useful lever to advance their arguments for more=20
limits on radio-station ownership. "There's a lot of anger about=20
consolidation, and it's become a target," says Jeff Smulyan, chief=20
executive of Emmis Communications which owns 27 radio stations. While many=
=20
radio executives concede programming has become more provocative, they say=
=20
it has nothing to do with consolidation. "It's the increasing competition=20
for listeners' attention that causes television programs and radio programs=
=20
to constantly push the envelope," says Andy Levin, Clear Channel's=20
Washington-based executive vice president. "With the explosion of the=20
Internet, everybody is competing for very precious moments of Americans'=20
time, and unfortunately, [many] go for edgier programming that's likely to=
=20
grab the public's attention."
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com=20
and Anne Marie Squeo annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB108052098981067495,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

A LA CARTE'S PUSHED UP HILL...
Although Senate Commerce Committee Chairman John McCain (R-AZ) admits that=
=20
passing legislation requiring cable operators to price channels on an=20
individual basis (known as a la carte) is dead this year, he's interested=20
in a proposal from Consumers Union. The proposal would test the concept for=
=20
digital cable subscribers in one market, studying the effects on cable=20
bills. Sen McCain would allow operators to continue to offer the expanded=20
basic tier of programming, but wants consumers to have more choice, too.=20
He's upset because cable rates continue to rise and there's no additional=20
value for consumers. Sen McCain notes that cable operators want to be able=
=20
to choose themselves which local TV stations they will carry on their=20
systems, but do not want to let consumers have choice. "I encourage the=20
industry to find a consistent message for itself =97 if they want choices,=
=20
provide the same choices for your customers," Sen McCain said.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA406421?display=3DTop+Stories
(requires subscription)
See Also:
B&C: =C0 La Carte Is Off The Senate's Menu=20
http://www.broadcastingcable.com/article/CA406396?display=3DTop+of+the+Week
SJMerc: A la carte cable TV suggested=20
http://www.mercurynews.com/mld/mercurynews/business/technology/8302779.htm

VIACOM PLANS A GAY CHANNEL, BUT THE RECEPTION ISN'T CLEAR
Two years ago, Viacom considered and abandoned at cable channel cable=20
network aimed at gays. The company now considers that a big mistake, Viacom=
=20
Chairman Sumner Redstone thinks it would have cost $30 million to launch a=
=20
channel that could now be worth $1 billion. So Viacom is looking at the=20
possibility again. But it is uncertain how popular such a channel would be=
=20
outside major cities (obviously the only place homosexuals watch TV). The=20
driver, of course, is that advertisers are increasingly attracted to gays=20
who spend nearly $500 billion a year. But not much is known about "gay"=20
viewing habits, Nielsen has never studied them. Some prominent gay=20
television executives and producers worry that gay viewers might resent=20
narrowly focused programming choices as attempts to pigeonhole them. "The=20
gay community is extremely diverse, [and] some would even say fragmented,"=
=20
says Kirk Iwanoski, vice president of marketing at the Sundance Channel.=20
"If you're going to go out there and make the claim that you're the gay=20
network, you're going to have to cover multiple aspects of the gay=
community."
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint at joe.flint( at )wsj.com]
http://online.wsj.com/article/0,,SB108052626014067558,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

TELEVISION

AIDES: DTV SCHEME SCARY TO CONGRESS
Visions of pitchforks and torches are haunting Members of Congress as they=
=20
consider the FCC's tentative plan to speed the transition to digital only=20
television broadcasting. The fear is those implements of destruction would=
=20
be tightly held by those voters who do not rely on cable or satellite for=20
TV and have not switched to digital TV technology before analog=20
broadcasting ceases. =93People who cannot afford cable or satellite TV=20
services are certainly not in a position to spend $1,000 on a new TV or=20
$300 to $500 on the set-top box that is required to receive digital signals=
=20
and covert them to analog. I hope that before pursuing this policy any=20
further, you and your staff will consider the ramifications for all=20
segments of America and pursue policies that do not cause economic harm=20
[to] people who can ill afford it,=94 wrote Rep Elliot Engel (D-NY) in a=20
letter to FCC Chairman Michael Powell.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA406176?display=3DPolicy
(requires subscription)

LEISURE PURSUITS OF TODAY'S YOUNG MAN
If Nielsen Media Research is correct, if young men are not watching as much=
=20
TV as they used to, what are they doing? Well, they are doing what guys do:=
=20
playing games, obsessing over sports and girls, and hanging out with=20
buddies - often online. Computers and high-speed Internet connections allow=
=20
guys to download video clips, play online games, watch DVDs, listen to=20
music and view pornography. All together, these activities offer enough=20
distraction to keep guys from turning on the TV or, more precisely, when=20
spread across the entire demographic, distracting guys from television for=
=20
about 4.5 mins/day.
[SOURCE: New York Times, AUTHOR: John Schwartz]
http://www.nytimes.com/2004/03/29/technology/29guy.html
(requires registration)

TELECOM

WILL CONGRESS HAVE THE ANSWER?
Jackson puzzles over the three-legged revenue stool of basic rates,=20
intercarrier compensation and universal service funding. He finds, "Today's=
=20
telecom environment needs a comprehensive solution that allows for the=20
give-and-take necessary to create consensus, so we can avoid the=20
regulation-litigation cycle that has hindered the industry in recent years.=
=20
But it appears that getting all the pieces on the table is crucial to=20
solving this puzzle. Unless there is unprecedented cooperation between=20
federal and state regulators, it may be that the only way to do this is=20
through Congress."
[SOURCE: Telephony's Regulatory Insider, AUTHOR: Donny Jackson]
(http://www.heritage.org/Research/InternetandTechnology/index.cfm)

QUICK HITS

* Comcast has hired advocacy firm Issue Dynamics to help outreach efforts=20
with consumer groups and others. Speculation is that IDI will try to help=20
win support of public interest groups for Comcast-Disney merger. IDI was=20
founded by Samuel Simon who was president of Telecom Research and Action=20
Center.

'DIRTY DRIVING' LAWS PROPOSED
What are those people watching in the next lane? An increase in X-rated=20
viewing in cars has some legislators proposing legislation that would=20
prohibit the viewing of ''obscene'' programming that can be seen by other=20
drivers.
[SOURCE: USAToday, AUTHOR: Charisse Jones]
http://www.usatoday.com/usatonline/20040329/6056215s.htm
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