Nov 6, 2009 (Broadband and Spectrum)
BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, NOVEMBER 6, 2009
Sure, it is Friday, but that doesn't mean there's nothing to do in policyland... 1) The FCC's National Broadband Plan focuses on issues for people with disabilities today at Gallaudet University and 2) there's a discussion of the FCC's Diversity Agenda hosted by the Federal Communications Bar Association. http://bit.ly/34UErU
NATIONAL BROADBAND PLAN
The Return on Our Investment of Spectrum
NBCU's Cotton: Spectrum Discussions Will Have To Take Place
Internet pioneer calls for spectrum sharing
Diversity, Civil Rights and the National Broadband Plan
Local government municipal fiber is critical to broadband deployment
Understanding Broadband Needs in a Diverse America
FCC Seeks Comment on Modifying E-rate Rules to Comply with the Protecting Children in the 21st Century Act
Cable Wants Funding for Digital Media Literacy
WISPs Weigh in on Middle Mile Broadband Questions
NECA Weighs in on Middle Mile Broadband
Radio Astronomers Weigh in on Spectrum Use
TELECOM
AT&T-Centennial Deal Receives Final Approval
Pressure on Google over blocked calls
FCC mulls changes to phone access rules
NCTA Outlines Ways for FCC to Free Up Funds for Broadband Deployment
USA Coalition Encourages Universal Service Fund Reform
NEWS FROM THE HILL
No Action On Shield Law .... Again
Senate Judiciary Committee Approves Data Security Bills
Leahy Looks for "Short-Time" Agreement on Satellite Reauthorization
House technology subcommittee clears cybersecurity bill
NAB's Smith Needs Ethics Rule Waiver
KIDS & MEDIA
Add Apps to Growing List of Concerns for Parents
Globally loved 'Sesame Street' is in a constant state of renewal
OWNERSHIP
Scripps Buys Major Stake in Travel Channel
Broadcasters challenge songwriters' price-setting power
Intel in trouble
FTC also likely to move on Intel
MORE ONLINE ...
EU adopts "Internet freedom" provision on Internet cut-offs
The Case for the Internet: A Human Right
Bloggers Outraged at a Horrific Assault
US physicians lag behind those in other countries in IT use
Knight, MacArthur and Chicago Community Trust Team Up for New Media Grants
Intel Lawsuit Explained
10 things Google has taught us
AT&T's lawsuit over Verizon ads could backfire
Waxman reiterates Network Neutrality support
At hearing on future of Postal Service, no dearth of despondency
NATIONAL BROADBAND PLAN
THE RETURN ON OUR INVESTMENT OF SPECTRUM
[SOURCE: Federal Communications Commission, AUTHOR: Blair Levin]
When it comes to spectrum, the Federal Communications Commission is thinking a lot about how to get the best return -- that is, important public benefits -- on invested assets. Spectrum is a key input for broadband, but we know that it also has other uses of great economic and social importance. So we welcome a robust debate about how we can best allocate spectrum -- both to maximize economic growth, but also to maximize the public good.
benton.org/node/29477 | Federal Communications Commission
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SPECTRUM DISCUSSIONS HAVE TO TAKE PLACE
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
NBC Executive VP and General Counsel Rick Cotton said Thursday that he doesn't want to see damage done to the over-the-air TV station model, but he also says the issue raised by the FCC about possibly reclaiming some broadcast spectrum for wireless broadband is "a set of discussions that are going to have to take place." Cotton said that it was "a reality" that viewers were accessing TV -- broadcast and cable and satellite channels -- over paid platforms (about 85% of TV station viewing is via cable or satellite), "so it is natural that there should be some discussion about the broadcast spectrum," he said. He called it "a set of discussions that are going to have to take place." But central to those discussions, he suggested, was the recognition that "the network local affiliate over-the-air broadcast system has served this country enormously well over a period of 60 or 70 years. I don't think anyone wants to see, frankly, damage done to that system," he added. Cotton said there were two important interests in play. One is access to television by the 10% of homes still getting an over-the-air signal (One suggestion that has been floated is to subsidize lifeline multichannel video service for those viewers.) The other is "the challenge that the FCC faces in terms of wireless spectrum."
benton.org/node/29476 | Broadcasting&Cable
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INTERNET PIONEER CALLS FOR SPECTRUM SHARING
[SOURCE: TelephonyOnline, AUTHOR: Kevin Fitchard]
Open networks, open platforms, open application programming interfaces, open-source operating systems and open standards arrived at through open processes — those might seem to cover the all of the bases in the pursuit of open mobility. But Vint Cerf, Google's chief Internet evangelist, proposed one more: open spectrum. At his keynote at the Open Mobile Summit, Cerf said that new modulation schemes in wireless for the first time allow for the sharing of spectrum between multiple parties, which makes the long-held notion of a single operator-single license obsolete. Orthogonal frequency division multiplexing access, which is the basis of 4G technologies WiMax and long-term evolution, abandons the notion of a single wide channel and instead splits a band into multiple sub-channels or tones. By tweaking the technologies already in development today for multiple entities, the industry could make a huge leap forward in more efficiently utilizing public spectrum resources, Cerf said. Some accommodation is necessary to change the way spectrum is allotted and paid for if the industry wants to take full advantage of the potential of what are very limited broadband resources.
benton.org/node/29475 | TelephonyOnline
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DIVERSITY, CIVIL RIGHTS AND THE NATIONAL BROADBAND PLAN
[SOURCE: Federal Communications Commission, AUTHOR: Mark Lloyd]
In the American Recovery and Reinvestment Act of 2009 Congress requires the Federal Communications Commission to submit a national broadband plan that seeks to "ensure that all people of the United States have access to broadband capability." Congress does not look for a plan that provides access to a majority of U.S. citizens, but to all people. This is consistent with Section 706 of the 1996 Telecommunications Act, which instructed the FCC to regularly report to Congress on whether advanced telecommunications services (what we now call broadband) were being made available to all Americans in a timely fashion. On October 2, the FCC conducted a day-long workshop that looked closely at what it would mean to craft a plan to extend broadband service to all Americans, regardless of age, gender, income, race, ethnicity, religion, political orientation, or disability. As FCC Commissioner Robert McDowell put it in opening the day's proceedings: "How are we going to be able to get these powerful technologies that can really improve the human condition so dramatically and so quickly how do we get those resources into the hands of as many people as possible?" This is the first in a series of blogs on that day-long program focused on ensuring that the national broadband plan takes into account the rich diversity of our nation in accordance with equal rights under law. This first blog will address the overarching goal of the day and describe the blog entries to come. All too often, it seems, words become political noise and cease to carry the meanings conveyed by the dictionary or intended by the user. Perhaps the term "civil rights" and the word "diversity" have suffered this fate. One goal of the October 2 workshop was to recapture and clarify those terms. Diversity means diversity. It is not a code word for minorities, or creating privileges for some specific group. The panelists who generously gave of their time, and the staff members who created and managed the various platforms for the panelists to speak, represent the true meaning of the word diversity. The concerns of the poor, of people of color, of different religious beliefs, of people with different physical and mental impairments, of immigrants and of Native Americans, of Republicans like Commissioner McDowell and Democrats like Commissioner Copps, all of this diversity was represented in the day's discussion.
benton.org/node/29474 | Federal Communications Commission
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LOCAL GOVERNMENT MUNICIPAL FIBER CRITICAL TO BROADBAND DEPLOYMENT
[SOURCE: National Association of Telecommunications Officers and Advisors, AUTHOR: Gerald Lavery Lederer]
Representatives of the National Association of Telecommunications Officers and Advisors have been meeting with Federal Communications Commission staff to discuss the National Broadband Plan. NATOA is making ten points concerning the contribution of local government to broadband: 1) Broadband networks are essential elements to local government civic engagement and e-government. 2) Local government municipal fiber networks are critical to broadband deployment. 3) Municipal fiber networks provide services for local governments that the private sector is unable or unwilling to provide. 4) Continued local authority will encourage broadband deployment through franchising build-out, the spurring of private investment, and rights-of-way management. 5) The National Broadband Plan must include strong measures to protect public broadband initiatives from the many barriers they face such as state legislation, frivolous lawsuits, and anticompetitive incumbent behavior. 6) The National Broadband Plan should adopt policies to preserve existing local broadband networks and to enable the expansion of those networks. 7) The National Broadband Plan should adopt policies to enable the deployment of new local broadband networks. 8) Rights- of-way management must continue to occur at the local level to ensure that existing public and private infrastructure remains safe and also to allow for the provision of new competitive services. 9) Local governments must be permitted to obtain fair and reasonable compensation for the use of public rights-of-way. 10) The National Broadband Plan must preserve state and local land use and zoning authority over wireless siting.
benton.org/node/29472 | National Association of Telecommunications Officers and Advisors
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BROADBAND NEEDS IN A DIVERSE AMERICA
[SOURCE: Federal Communications Commission, AUTHOR: Mark Lloyd]
A Federal Communications Commission workshop on Broadband Access and Adoption on Diversity and Civil Rights Issues revealed that we need much richer data on who does not have access to broadband and who is not adopting broadband and why. The answers we have are not sufficient to help us craft an intelligent National Broadband Plan to promote advanced telecommunications services to all Americans. We need more granular information. As FCC Consumer Research Director Dr. John Horrigan stated, several studies suggest that "broadband adoption in the United States stands at close to two-thirds of Americans." But these studies are problematic on a number of fronts. The first problem is that the studies assume that we already have a clear definition of broadband, when, as Santa Clara Law Professor Catherine Sandoval noted, not even the FCC has been reliable about the definition of broadband. The definition of broadband is made even more complicated by the suggestion that some groups are adopting wireless broadband, when we do not have sufficient information about which applications are available to this rising group of wireless broadband users. Dr. Horrigan also noted that "education and income are the two strongest predictors of whether you have broadband at home." But education and income are not the only predictors. Region, ethnicity, and other factors are also important. As Rutgers Dean Jorge Schement said, "it's not just about money; there's something else going on that prevents people in the same income group from having the same levels of access to information technology. Technology access is also dependent on aspects of ethnicity."
benton.org/node/29460 | Federal Communications Commission
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FCC SEEKS INPUT ON MODIFYING THE E-RATE
[SOURCE: Federal Communications Commission, AUTHOR: ]
The Federal Communications Commission is seeking public input on a proposal to revise its rules regarding the schools and libraries universal service support mechanism, also known as the E-rate program, to comply with the requirements of the Protecting Children in the 21st Century Act. Among other things, this law added a new certification requirement for elementary and secondary schools that have computers with Internet access and receive discounts under the E-rate program. The FCC proposes to revise related rules to reflect existing statutory language more accurately. FCC Commissioner Robert McDowell said, "I am pleased to support this Notice of Proposed Rulemaking which proposes to update the Commission's rules to comport with statutory requirements. The Internet is an extremely important educational tool for students. Due to the widespread use of the Internet by minors both in school and at home, it is imperative that they be educated regarding the dangers that they may encounter online. Schools can play a critical role in supplementing this education. I commend the Chairman for updating the Commission's rules on this topic, and I look forward to hearing from interested parties."
benton.org/node/29459 | Federal Communications Commission | Commissioner McDowell
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CABLE WANTS FUNDING FOR DIGITAL MEDIA LITERACY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
National Cable & Telecommunications Association President Kyle McSlarrow says that digital media literacy should be a focus of broadband stimulus funding -- to the tune of $500 million. "Congress should direct that the agencies managing distribution of broadband stimulus funding allocate $500 million during the next two years for the development of digital media education tools," McSlarrow said in a speech to the 2009 Annual Conference of the Family Online Safety Institute. "With a substantial portion of stimulus funding yet to be allocated, and with the broadband adoption rate continuing to increase from coast to coast, we must vigorously renew this call to acknowledge as a national priority digital literacy for children and families."
benton.org/node/29458 | Broadcasting&Cable
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WISPS WEIGH IN ON MIDDLE MILE BROADBAND QUESTIONS
[SOURCE: Wireless Internet Service Providers Association, AUTHOR: Richard Harnish]
The Wireless Internet Service Providers Association is telling the Federal Communications Commission that the National Broadband Plan can and should address the market conditions that prevent wireless ISPs from obtaining "adequate, reasonably priced, and efficiently provided access to both middle mile and second mile connectivity." WISPA surveyed it members finding: 1) for every link in the broadband delivery chain, costs are higher when competition and access to Tier 1 carriers does not exist; 2) no single technology satisfies the needs of unserved and underserved consumers, 3) many WISPs lack the scale to win discounted pricing, and 4) affordable access to transport and connectivity facilities will become an increasingly critical problem as consumer bandwidth needs grow. WISPA recommendations cover: tariff structure, assistance to small broadband providers, open access, spectrum, funding, and access to towers and poles.
benton.org/node/29471 | Wireless Internet Service Providers Association
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NECA WEIGHS IN ON MIDDLE MILE BROADBAND
[SOURCE: NECA, AUTHOR: Elizabeth Newson]
NECA filed comments on the FCC's NBP #11: the Impact of Middle and Second Mile Access on Broadband Availability and Deployment. NECA provided the FCC with information related to second and middle mile costs in rural areas, based on data drawn from its pool settlement systems and two annual surveys of member companies designed to collect data on a broad range of services and technologies deployed. NECA stated the data shows rural areas have high middle mile and second mile costs which merit inclusion in broadband universal service support. NECA also pointed out that there are wide variations in these costs, and because of these cost variations, broad mathematical cost models will not work as predictors of broadband deployment costs in areas served by rural rate-of-return companies, and that any funding mechanism should reflect actual costs incurred by rural broadband service providers.
benton.org/node/29470 | NECA
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RADIO ASTRONOMERS WEIGH IN ON SPECTRUM USE
[SOURCE: National Academy of Sciences, AUTHOR: Ralph Cicerone]
The National Academy of Sciences is warning the Federal Communications Commission about the vulnerabilities of passive users of spectrum. "Passive" use of the spectrum means observing the presence of certain naturally occurring phenomena on specific frequencies, rather than using spectrum to transmit information or signals. because of the passive nature of this use of the spectrum and the extremely weak signals observed, passive scientific use of the spectrum is uniquely vulnerable to interference from other services. NAS supports the efficient use of spectrum, including the current practices of passive scientific observation of the spectrum. In order to promote such efficiency, NAS suggests that the Commission adopt an objective, quantifiable approach in connection with interference protection for passive (and where appropriate, other) users of the spectrum. The Commission should be cautious, however, in attempts to promote efficiency by regulating receiver performance, at least as applied to passive users.
benton.org/node/29469 | National Academy of Sciences
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TELECOM
AT&T-CENTENNIAL DEAL RECEIVES FINAL APPROVAL
[SOURCE: Bloomberg, AUTHOR: Todd Shields]
AT&T's $945 million purchase of Centennial Communications has won final regulatory approval from the Federal Communications Commission. The deal adds 1.1 million wireless customers to the second-largest U.S. mobile-telephone company. AT&T told FCC staff it could provide advanced services to Centennial customers Earlier AT&T offered to limit contact with America Movil SAB, Latin America's largest mobile phone company. All three companies have customers in Puerto Rico. AT&T also said it would honor agreements that other companies struck to complete telephone calls over Centennial's network. FCC Commissioner Michael Copps concurred, but did not vote to approve the deal saying, "This transaction does not appear to be the vehicle for major changes in the Commission's approach to mergers in the wireless sector. For many years now I have expressed concern over the rising tide of economic concentration in our telecommunications and media industries. But the tide continued to run through those years. Consumers have paid a heavy cost, in terms of dollars, confusion and constricted services, because the FCC permitted-even encouraged-this concentration to happen. In both theory and practice, too much power in too few hands is not a good prescription for America's communications future."
benton.org/node/29482 | Bloomberg | FCC | Commissioner Copps
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PRESSURE ON GOOGLE OVER BLOCKED CALLS
[SOURCE: The Hill, AUTHOR: Kim Hart]
Pressure is growing on the Federal Communications Commission (FCC) to come down on tech giant Google for blocking access to certain telephone numbers with its Google Voice service. The issue involves fees that traditional phone companies are forced to pay to connect calls, but from which Google argues it is exempt because it is a Web-enabled phone service. Some members of Congress are also paying attention, especially now that the FCC is considering implementing rules that would force Internet service providers to treat all traffic equally. A bipartisan group of 20 House members, including Reps. Steve Buyer (R-IN.), John Shimkus (R-Ill.), Bennie Thompson (D-Miss.), Lee Terry (R-Neb.) and Charlie Melancon (D-La.), sent a letter to the FCC last month asking for a formal investigation of Google Voice. The FCC has not yet responded to the letter.
benton.org/node/29481 | Hill, The
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FCC MULLS CHANGES TO PHONE ACCESS RULES
[SOURCE: Reuters, AUTHOR: John Poirier]
The Federal Communications Commission on Thursday said it was mulling whether changes are needed to regulations governing access to telephone lines largely controlled by telecom giants. In many areas throughout the United States, only one telecom firm maintains the special access lines that connect to individual businesses. The vast majority of lines are controlled by Verizon, AT&T and Qwest. Competitors such as wireless provider Sprint Nextel Corp that rely on telephone lines that are the remnants of the old Bell telephone company monopoly are pushing the FCC to lower prices for special access to those lines. The FCC issued a "public notice" seeking comments for 45 days on how to establish an appropriate analytical framework for examining the long-running "special access" issue.
benton.org/node/29478 | Reuters | FCC
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NCTA OUTLINES WAYS FOR FCC TO FREE UP FUNDS FOR BROADBAND DEPLOYMENT
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Calling it a "modest first step" on the road to Universal Service Reform, the National Cable & Telecommunications Association has said it knows how the Federal Communications Commission can save the government up to $2 billion, freeing it up to help underwrite ubiquitous broadband deployment. In a petition for rulemaking, NCTA has said that some can be recovered by no longer providing subsidies to phone companies in rural areas where competition exists from new entrants, like cable companies, for example. NCTA argues that the subsidy, which was meant to support service where no other was available, no longer reflects a marketplace in which consumers can choose cable voice service in much of the country. NCTA includes a study it says shows where the FCC is providing billions in subsidies to phone companies where they have unsubsidized competitors. NCTA wants a two-step process. First, it wants a petition -- a cable company for example -- to be allowed to demonstrate that an unsubsidized wireline competitor serves more than 75% of customers in a given area, or that the state has found "sufficient competition" to deregulate retail rates charged by incumbent carriers. If that threshold was met, the FCC would require the USF recipient to demonstrate the minimum support necessary to serve the noncompetitive portions of the service area.
benton.org/node/29473 | Broadcasting&Cable | Text of NCTA letter | Read the petition
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USA COALITION WANTS USF REFORM
[SOURCE: Universal Service for America Coalition, AUTHOR: Todd Daubert]
Representatives of the Universal Service for America Coalition met with Federal Communications Commission staff to discuss, what else, universal service including: 1) the misidentification of the Identical Support rule as the cause of the alleged problems with the universal service program; 2) the relationship between universal service reform and special access reform, including the detrimental impact that subsidizing only one or two service providers in rural markets could have on the availability of "second-mile" and "middle-mile" connectivity at reasonable rates, terms and conditions in those areas; 3) the importance of granting the Corr Petition; 4) the importance of granting the Mobi/Cricket Petition and of providing greater clarity on how carriers should report customers to USAC that use P.O. Boxes as mailing addresses; 5) the need to develop clear guidelines for the enforcement of rules which mandates Lifeline service providers advertise their supported services; 6) the need to respond to Advantage Cellular's cost-filing in a manner and in a timeframe consistent with how the Commission treats all other USF cost-filings; 7) the appropriate perspective for considering long-term universal service reform, and the importance of ensuring that any reform is technologically and competitively neutral; and 8) the potential harms of establishing arbitrary requirements for USF support with respect to speed or type of service such requirements would only inhibit the deployment of broadband and voice services in rural areas.
benton.org/node/29453 | Universal Service for America Coalition | Detailed filing | A new Approach to Universal Service Reform
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NEWS FROM THE HILL
NO ACTION ON SHIELD LAW ... AGAIN
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Armed with a compromise bill that has the approval of the Attorney General and the co-sponsors of the bill, Senate Judiciary Committee Chairman Patrick Leahy (D-VT) was once again unable to consider the Free Flow of Information Act, which grants qualified protection for journalists and their sources from government overreach. That version, and one already passed by voice vote in the House March 31, was scheduled to be considered at the regular Thursday business meeting, but was again tabled after legislators on both sides said they needed to take a harder look at the new language. The bill has been on the calendar for consideration since April, but ran into a series of delays including some filibustering by Republicans concerned it provided too much protection at the expense of the government's ability pursue wrongdoers, then by the vetting of Supreme Court nominee--now Justice--Sonia Sotomayor, and most recently by the Obama administration's concerns over allowing judges to arbitrate cases in which the government asserts the public's interest in compelling disclosure trumps that of protecting sources of the free flow of information.
benton.org/node/29467 | Broadcasting&Cable
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SENATE JUDICIARY APPROVES DATA SECURITY BILLS
[SOURCE: BroadbandCensus.com, AUTHOR: ]
The Senate Judiciary Committee approved two data security bills Thursday. The first measure, the Personal Data Privacy and Security Act (S.1490), seeks to prevent and mitigate identity theft, ensure privacy, and provide notice of security breaches. It also would enhance criminal penalties, law enforcement assistance, and other protections against data security breaches. The panel also approved the Data Breach Notification Act (S. 139), a bill which would require federal agencies, and persons engaged in interstate commerce to disclose any data breach of sensitive information.
benton.org/node/29466 | BroadbandCensus.com
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LEAHY HOPES TO MOVE SATELLITE BILL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senate Judiciary Committee Chairman Patrick Leahy (D-VT) said he hopes to work with his colleagues to get a short-time agreement on the Judiciary committee version of the satellite reauthorization bill that was passed out of committee Sept. 24. The short-time agreement is a way to streamline the floor consideration of a noncontroversial bill. Leahy pointed out that his committee has a lot on its plate, including nominations to vet and vote out and several pieces of must-pass legislation. He said he didn't think the bill was controversial.
benton.org/node/29457 | Broadcasting&Cable
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HOUSE SUBCOMMITTEE CLEARS CYBERSECURITY BILL
[SOURCE: CongressDaily, AUTHOR: Andrew Noyes]
The House Science Technology Subcommittee easily approved a bill Wednesday designed to streamline and strengthen government oversight of the nation's electronic infrastructure, including computer and telecommunications networks. The bill, currently a committee print, was drafted to meet a need for more coordinated oversight and regulation of security issues on the Internet. It passed on a voice vote with no opposition. Of particular importance, committee members said, is streamlining cyberspace security standards to keep information safe from computer hackers.
benton.org/node/29455 | CongressDaily
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NAB'S SMITH ETHICALLY CHALLENGED
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
National Association of Broadcasters President Gordon Smith has told a group of legislators that he will need an ethics rule waiver to agree to their request to participate in a discussion with them and music industry representatives on the issue of performance royalties. Smith pointed out that his contacts with Congress are by necessity limited. "In light of the existing laws prohibiting me from lobbying Congress for a period of two years after leaving office," he wrote, "I will need to request and be provided with an ethics waiver that indicates my participation in your November 17 forum is legally and ethically permissible. There is, as I understand, an exception for communications made in the form of congressional testimony. I will need confirmation from the Senate that my participation falls within this, or some other exception." If he gets that waiver, Smith has also asked that the meeting be in the afternoon because he has a previous speaking engagement. Smith is scheduled to speak at the Media Institute on that day.
benton.org/node/29465 | Broadcasting&Cable
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KIDS & MEDIA
ADD APPS TO GROWING LIST OF CONCERNS FOR PARENTS
[SOURCE: Washington Post, AUTHOR: Cecilia Kang]
Common Sense Media, a non-profit group focused on educating families about digital content, is pushing federal regulators to pay closer attention to cell phone applications and the possible risks posed by an explosion of mobile content. It's also in talks with Apple about signaling to parents and children what applications may be inappropriate for them. The group is also beginning to rate phone applications like it has done for video games, movies and Web sites. Common Sense Media sees "digital literacy" for children as a key regulatory concern that crosses several sections of the federal government. The group thinks the Federal Communications Commission has a responsibility to dive into questions of new technologies with its expansive inquiry into how digital media is impacting children. Education regulators should educate students and their families on digital content as part of school curriculum. Technology regulators should look at the impact of new technologies on children. The Obama administration's push for high-speed access to all Americans should also include education on how children and families can use the Web.
benton.org/node/29461 | Washington Post
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OWNERSHIP
SCRIPPS BUYS MAJOR STAKE IN TRAVEL CHANNEL
[SOURCE: New York Times, AUTHOR: Brian Stelter, Zachery Kouwe]
Scripps Networks, the owner of the Food Network and HGTV, snapped up a majority stake in the Travel Channel on Thursday in a nearly billion dollar deal. The agreement by Scripps and Cox Communications, which will maintain a 35 percent stake in the channel, underscored the value of the cable channel business. The deal concluded a months-long series of bids by Scripps, the News Corporation and a number of private equity groups. The joint venture values the relatively low-rated Travel Channel at $975 million — a price many investment bankers and analysts say they believe is rich for the current market. The joint venture structure will allow Cox to dodge a steep tax bill left over from the transaction it made with the media mogul John Malone in 2007 to exchange its interest in Discovery Communications for an interest in the Travel Channel.
benton.org/node/29487 | New York Times
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BROADCASTERS CHALLENGE SONGWRITERS
[SOURCE: Los Angeles Times, AUTHOR: Jon Healey]
Federal law gives copyright owners a legal monopoly over public performance of their works, among other uses. But their market power is supposed to be limited by the competition from other copyright owners. Consider the case of songwriters. Paul McCartney can make you pay for the privilege of including "Jet" in your movie, even if it's recorded by Shonen Knife instead of McCartney's Wings. But if you don't like what he charges, you can write your own material or go to another songwriter who demands less. Unless you can't go to someone else. That's the problem TV broadcasters face when they air syndicated programming. They're contractually bound to air the programs they buy with the music that's already in the soundtrack. As a result, they have zero leverage with songwriters when it comes to negotiating for the rights to broadcast those songs. A group of broadcasters has now gone to federal court in New York for help, filing a class-action antitrust lawsuit against SESAC, one of the three performing rights organizations representing songwriters and music publishers. The complaint was filed Wednesday afternoon by lawyers from Weil, Gotshal & Manges, and SESAC hasn't offered any comment yet. It singles out SESAC, the smallest of the performing rights groups (the others are ASCAP and BMI), for two reasons: SESAC's stable of composers includes many of the leading music writers for TV and commercials, and the other two rights groups' rates are already overseen by federal courts through longstanding consent decrees with the Justice Department.
benton.org/node/29486 | Los Angeles Times
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INTEL IN TROUBLE
[SOURCE: Financial Times, AUTHOR: Editorial staff]
[Commentary] When corporate giants wield their pricing power as a weapon to smash pygmies, consumers win - but only for a while. That is why regulators must be vigilant. This week, Andrew Cuomo, New York attorney general, filed an anti-trust complaint against Intel, following a case that has already led to regulatory action in Europe and Asia. The pricing discounts that suppliers like Intel give to large volume customers are welcome, even when those discounts reinforce the inherent advantages of a market leader in an industry which, like semiconductors, relies heavily on scale economies. But if price discounts are used as a predatory weapon, prompt action is essential. Some have argued for tighter restrictions, such as absolute limits to the discounts that a dominant company like Intel can apply. Price regulation, however, is a last resort justified only in cases of total market failure. If anything, the AMD example argues the opposite. It lacked its rival's massive financial strength, but beat Intel in the race to the first generation of multi-core chips. Indeed, it was the desire of Dell and others to buy these more advanced chips that led Intel to wield its power in a way that watchdogs argue was too extreme. AMD's experience is a reminder that tech innovators can flourish even against dominant rivals - but only if regulators remain alert.
benton.org/node/29485 | Financial Times
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FTC ALSO LIKELY TO MOVE ON INTEL
[SOURCE: San Francisco Chronicle, AUTHOR: Andrew Ross]
The suit filed by New York Attorney General Andrew Cuomo against Intel may be a sideshow for what promises to be the main event - the government, in the form of the Federal Trade Commission, which has been investigating Intel since 2008, entering the legal fray. "Often states and the FTC act together, so this could be a harbinger," said Scott Hemphill, professor of antitrust law at Columbia Law School. "It's not clear that the facts have changed in the past year," said Hemphill. Which makes the outcome of any of the suits impossible to predict. "The hard thing about the Intel case is the ambiguous nature of its real conduct; that is, the effects of a company offering discounts which happen to undercut a rival," he said. "This is unsettled in antitrust law."
benton.org/node/29484 | San Francisco Chronicle
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