May 2004

The Cato Institute is hosting a discussion TODAY titled "The FCC's Media
Ownership Decision One Year Later." The Media Access Project's Andrew
Schwartzman and Cato's Adam Thierer will debate the current state of the
modern media marketplace and answer questions about the regulations that
govern this important sector. For more information see
http://www.cato.org/events/040525pf2.html.

NONCOMMERCIAL COMMUNICATIONS
FCC May Spur Sale Of Airwaves Held by Schools
CPB's TV Future Fund was Illegal, GAO Finds

MEDIA & POLITICS/GOVERNMENT
Campaign Ads Are Under Fire for Inaccuracy
How Americans Get in Touch With Government

PRIVACY
Privacy Groups Challenge FBI Authority to Obtain Records Without Court Order

NONCOMMERCIAL COMMUNICATIONS

FCC MAY SPUR SALE OF AIRWAVES HELD BY SCHOOLS
More than 40 years ago, President John F. Kennedy set aside a hefty portion
of the radio waves for educational use by private and public schools,
universities and other institutions, a swath of spectrum roughly equal in
size to all the airwaves owned by the cellular industry. Last week, the
FCC's five commissioners began considering a proposal to strip a small
portion of the spectrum from the educational institutions and then
reallocating it for new uses. It would also allow the educational groups to
sell the rest of their spectrum to commercial companies for new uses -- in
deals that could potentially be valued at billions of dollars. The FCC
expects to rule on the issue in coming weeks, though the proposal could be
changed substantially in the interim. The Catholic Television Network, an
association of 16 Catholic archdioceses around the country including those
in New York, Los Angeles and Chicago, is leading a group seeking to stop
the FCC from allowing sales. Critics of the FCC plan say the opportunity to
sell off the spectrum will prove too attractive to resist for many schools
as they come under pressure from cash-strapped cities and states. "So if
[California Gov.] Arnold Schwarzenegger decides to balance the California
budget by selling these licenses, very good systems will be eliminated,"
said Harold Feld, associate director of the Media Access Project.
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB108543701703420032,00.html?mod=todays...
(requires subscription)

CPB'S TV FUTURE FUND WAS ILLEGAL, GAO FINDS
In "Issues Related to Federal Funding of Public Television by the
Corporation for Public Broadcasting," the General Accounting Office finds
that the Corporation for Public Broadcasting operated outside its authority
when it took money from the part of its appropriation that Congress
designated for station grants and used it for Television Future Fund
projects. Between 1996 and this year, the Future Fund made grants for R&D
projects to improve public TV operations and fundraising. But GAO said CPB
can't legally make selective grants from funds allocated for stations. The
GAO also finds in the report that CPB lagged in distributing some of the
special appropriation for public TV's move toward digital transmission. The
delays prevented many stations from meeting FCC digital construction
deadlines. GAO also recommended that CPB broaden the scope of its digital
grants program beyond its emphasis on transmission equipment to include
support for digital content and production equipment. The report was
requested by Reps Joe Barton (R-TX), Richard Burr (R-NC), Ralph Regula
(R-OH) and Fred Upton (R-MI).
The GAO report is available at http://www.gao.gov/new.items/d04284.pdf
CPB's response to the report is available at:
http://www.cpb.org/programs/pr.php?prn=357
[SOURCE: Current, AUTHOR: Karen Everhart and Jeremy Egner]
http://www.current.org/cpb/cpb0409gao.shtml

MEDIA & POLITICS/GOVERNMENT

CAMPAIGN ADS ARE UNDER FIRE FOR INACCURACY
A record year for political advertising has brought with it a hail of
televised exaggerations, omissions and mischaracterizations that pollsters
say seem to be leaving voters with mistaken impressions of Senator John
Kerry and President Bush. The degree to which the advertisements push the
facts, or go beyond them, varies by commercial. While Mr. Bush's campaign
has been singled out as going particularly far with some of its claims, Mr.
Kerry's campaign has also been criticized as frequently going beyond the
bounds of truth.
[SOURCE: New York Times, AUTHOR: Jim Rutenberg]
http://www.nytimes.com/2004/05/25/politics/campaign/25ADS.html?hp
(requires registration)

HOW AMERICANS GET IN TOUCH WITH GOVERNMENT
Internet users are increasingly turning to e-government sites to carry out
their business with government. But Internet users and non-users alike
value having more than one way to get in touch with government. New
research by the Pew Internet & American Life Project shows that 97 million
adult Americans, or 77% of Internet users, took advantage of e-government
in 2003, whether that meant going to government Web sites or e-mailing
government officials. This represented a growth of 50% from 2002. At the
same time, citizens who contact government said they are more likely to
turn to traditional means - either the telephone or in-person visits -
rather than the Web or email to deal with government. Additional findings
include: 1) Internet users are about 3 times as likely as non-Internet
users to get in touch with government, whether the contact means conducting
a transaction or seeking help with a problem. 2) 30% of Internet users have
e-mailed a government official in order to try to influence policy or
change a politician's position on a law. 3) Half of all Internet users and
59% of online users with broadband connections at home say that the
Internet has helped their relationship with government. 4) 63% of Americans
who contact government report that they were successful in addressing the
issue that prompted the contact. 5) 76% of Americans who contact government
say they were "very" or "somewhat" satisfied with the outcome of their last
dealing with government. 6) 22% of Americans who contact government use
more than one means to do it, with the telephone most likely to the first
option chosen. 7) Traditional means of contacting government are strongly
preferred by those who have a disabilities. 8) Americans with disabilities
are less likely than others to have Internet access. Just 40% of those with
disabilities have access, compared to 63% of the overall population. Those
with disabilities prefer contacting the government by telephone or in
person rather than over the Web or email by a 65% to 15% margin.
[SOURCE: Pew Internet & American Life Project]
http://www.pewinternet.org/reports/toc.asp?Report=127
AP: http://www.mercurynews.com/mld/mercurynews/business/technology/8750894.htm

PRIVACY

PRIVACY GROUPS CHALLENGE FBI AUTHORITY TO OBTAIN RECORDS WITHOUT COURT ORDER
The Center for Democracy and Technology (CDT) joined other privacy groups
and an ISP trade association in filing an amicus brief today in support of
the ACLU's challenge to the FBI's National Security Letter authority, which
allows it to obtain certain customer records from ISPs and other businesses
without a court order.
Amicus Brief [pdf], filed May 24, 2004:
http://www.cdt.org/security/iusapatriot/200420524amicus.pdf
More information on the ACLU's Lawsuit:
http://www.aclu.org/SafeandFree/SafeandFree.cfm?ID=15543&c=262
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments. For upcoming media
policy events, see http://www.benton.org/calendar.htm
--------------------------------------------------------------

BROADCASTING
Notice of Inquiry on Localism Coming
FCC Will Look at Violence
Making Money Now on HDTV: Practical Lessons from the Field
Networks Debate Age Groups' Value to Advertisers
The Campaign Media Guide

CABLE
Why I'm Filing Chapter 11
Adelstein Opposed to Brand X Appeal

SPECTRUM
FCC's Powell Retracts Vote On Nextel Spectrum Request
Powell: Wireless Vital to Broadband Future

TELECOM
Sprint's Role as Wholesaler: 'Arms Dealer' to the Industry
New York Classifies Vonage as Phone Company
Intermodal Competition in Telecom: A Vision, not a Reality
FCC's Number Portability Rule Likely to Hurt Rural Carriers

INTERNET
CAN-SPAM Act
WWW Conference Mulls Web as Personal Memory Store

BROADCASTING

NOTICE OF INQUIRY ON LOCALISM COMING
According to FCC Commissioner Jonathan Adelstein, the FCC will soon launch=
=20
a proceeding on localism which would look at what the Commission can do to=
=20
ensure that news and issues of local concern are properly covered by=20
broadcasters and that broadcasters fulfill their public interest=20
obligations. A big question is whether local ownership of broadcast=20
stations makes a difference in how well the station serves the public =97 or=
=20
whether out-of-state owners, which tend to be larger companies, do just as=
=20
good a job, Commissioner Adelstein said. =93That issue, I don't know that it=
=20
has been completely settled. We get arguments on both sides,=94 he said.=20
Commissioner Adelstein said out-of-state owners argue that localism is in=20
many ways market driven because a station that=92s unresponsive to the=20
viewers won't be watched. Local owners say local ownership is vital. What=20
isn't clear, Commissioner Adelstein said, is whether localism should be=20
left entirely to the market or whether the government should get involved.=
=20
Commissioner Adelstein said he didn't know when the item would be released.
[SOURCE: Communications Daily, AUTHOR: Brigitte Greenberg]
(Not available online)

FCC WILL LOOK AT VIOLENCE
In March, House Commerce Chairman Joe Barton (R-TX), Telecommunications=20
Subcommittee Chairman Fred Upton (R-MI), and the respective committees'=20
ranking Democrats John Dingell (D-MI) and Ed Markey (D-MA), requested that=
=20
the FCC conduct an inquiry into broadcast violence to be completed and=20
reported on by Jan. 1, 2005. FCC Chairman Michael Powell's staff is now=20
saying that the Commission's Media Bureau will draft a Notice of Inquiry=20
for review by FCC commissioners soon. The House committee wants the report=
=20
to address the harm that excessively violent programming does to children.=
=20
It also wants to know whether it is in the public interest to define=20
programming that would be considered "excessively violent," whether it is=20
constitutional to prohibit that programming when children are likely to be=
=20
viewing, and whether the FCC already has the authority to make that=20
prohibition or whether it needs Congress to authorize that power for the=
FCC.
[SOURCE: BusinessWeek, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA419866?display=3DBreaking+News

MAKING MONEY NOW ON HDTV: PRACTICAL LESSONS FROM THE FIELD
Communications Daily and Consumer Electronics Daily co-hosted an=20
audioconference Thursday on the transition to digital TV and how we all=20
(well, mostly broadcasters) can benefit from it. The greatest barrier to=20
the transition may be continued lack of consumer education and confusion in=
=20
the marketplace, some claimed. People don't choose a new technology because=
=20
they see it in stores, but because a friend has made the purchase. But high=
=20
definition is driving the consumer electronics market now. Sets sell with=20
high margins and also induce consumers to buy other products like audio=20
equipment and DVD players.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins, Steve Booth]
(Not available online)

NETWORKS DEBATE AGE GROUPS' VALUE TO ADVERTISERS
Are you more valuable to advertisers if you are 18- to 49-years-old or 25-=
=20
to 54-years-old? Television networks are debating this now because the=20
answer is worth hundreds of millions of dollars to them. CBS President=20
Leslie Moonves told advertisers this week that 18-year-olds aren't likely=20
to buy cars and don't maintain their own homes. Nielsen data show that 51=20
percent of the sought-after "young affluent audience" -- 18- to=20
34-year-olds living in households that make more than $75,000 per year --=20
are dependent on someone else's money. "The 18-to-24 group doesn't have a=20
lot of discretionary income," said Shari Ann Brill, a media buyer for Carat=
=20
USA. "They're in school, so [Moonves] does have a point. But that younger=20
[group] is very good for movies and fast food [advertising], though, yes,=20
to a certain extent, it is their parents' money." NBC counters: "We listen=
=20
to our customers, and they consistently tell us that the 18-to-49 viewers=20
are the most valued audience in television. NBC can deliver that=20
demographic better than any network." Advertisers in search of youth don't=
=20
always act expectedly. Suppose "Show A" has 5 million viewers ages 18-49=20
and 1 million 50 and older, for a total of 6 million viewers. "Show B" also=
=20
has 5 million 18- to 49-year-old viewers but 5 million who are 50 and=20
older, for a total of 10 million viewers. Common sense would suggest that=20
advertisers should pick "Show B," which delivers the younger audience plus=
=20
5 million bonus viewers. But they do not. They pick "Show A" -- and pay=20
more for it -- because a greater percentage of the show's total viewership=
=20
is younger.
[SOURCE: Washington Post, AUTHOR: Frank Ahrens]
http://www.washingtonpost.com/wp-dyn/articles/A44031-2004May20.html
(requires registration)

THE CAMPAIGN MEDIA GUIDE
This is a comprehensive primer on candidates' and citizens' rights -=20
broadcasters' obligations - during the 2004 election season. This Guide is=
=20
designed to be a hands-on resource for all those involved in political=20
broadcasting, including advertising and news coverage, during federal=20
elections - candidates, media buyers, ad makers, broadcasters and citizen=20
organizations alike. The Guide includes the most recent Federal=20
Communications Commission and Federal Election Commission regulations=20
regarding the application of the new campaign finance laws (the Bipartisan=
=20
Campaign Reform Act of 2002, or "McCain-Feingold") as well as other new=20
requirements and rules. Features within the Guide include: 1)=20
Identification of candidates' rights to airwaves during election season, 2)=
=20
Descriptions of broadcasters, cable operators, and Digital Broadcast System=
=20
(DBS) operators political discourse obligations, 3) Case studies of=20
successful and unsuccessful challenges of broadcaster actions, 4) Important=
=20
contact information for filing informal and formal complaints, 5) Detailed=
=20
analysis of broadcast station political files and available information for=
=20
candidates and citizens, and 6) Sponsorship identification requirements for=
=20
both the FEC and FCC including sample language.
[SOURCE: Campaign Legal Center]
http://www.campaignlegalcenter.org/attachment.html/CLC_MediaGuide+%28FIN...
9.pdf?id=3D1121

CABLE

WHY I'M FILING CHAPTER 11
Cable, phone and video provider RCN will be filing Chapter 11 bankruptcy in=
=20
the next couple of weeks, the company's CEO writes. Why? "The cable=20
industry remains in the grip of a monopoly mindset. Despite all the=20
innovation, the surge in new players, and the billions of dollars lost=20
since the passage of the 1996 Telecom Act, cable rates have soared 40% and=
=20
the industry giants continue to think in terms of how to dominate markets=20
rather than of how to drive innovation. The bankruptcies that sidelined so=
=20
many upstart cable providers have effectively spared the cable incumbents=20
from facing competitive pressures -- at least for the moment." The cable=20
business model relies on local service monopolies; closed, proprietary=20
technology to inhibit open competition; and packaging programming -- which=
=20
the cable operators own -- so that consumers have to buy channels they=20
don't want, so they can get the channels they do want. McCourt predicts the=
=20
next wave in telecom: companies that bring Voice-over-IP technology to the=
=20
cable world, creating "Video-over-IP" competitors who change the way=20
customers bring television into their homes. That possibility should worry=
=20
today's cable giants who have been ignoring the logic of economics, the=20
possibilities of technology and the interests of consumers for far too long.
[SOURCE: Wall Street Journal, AUTHOR: David McCourt, chairman and CEO of=20
RCN Corporation]
http://online.wsj.com/article/0,,SB108509359741217460,00.html?mod=3Dtoda...
s_opinion
(requires subscription)

ADELSTEIN OPPOSED TO BRAND X APPEAL
Two weeks ago, Comcast CEO Brian Roberts told the Senate Commerce Committee=
=20
the Brand X case was one of the biggest regulatory risks facing his=20
industry. The uncertainty was heightened, he added, by the fact that it was=
=20
unclear whether the Department of Justice would ask the Supreme Court to=20
overturn the decision by the U.S. Court of Appeals for the Ninth Circuit=20
ruling that cable-modem service is partly an information service and partly=
=20
a telecommunications service. Although information services are largely=20
unregulated, telecommunications-service providers are required to make=20
their transport facilities available on nondiscriminatory terms and=20
conditions -- forced-access mandates that cable has been fighting for=20
years. Yesterday, FCC Commissioner Jonathan Adelstein told reporters he=20
does not support the DOJ joining in the cable industry's appeal of the=20
case. =93I really don't see any reason myself to seek [Supreme Court review]=
=20
on the case,=94 Commissioner Adelstein said. =93I think we can operate=
within=20
the bounds of that decision and accomplish the goals of deregulation=20
through other means, such as forbearance.=94 Commissioner Adelstein believes=
=20
the FCC needs to move away from the classification debate and "get to the=20
real point of how do you treat these services under the rules." At stake is=
=20
the legal right of competing Internet-service providers such as EarthLink=20
to lease bandwidth from cable operators at wholesale rates. The deadline to=
=20
file with the Supreme Court is June 29. A few weeks ago, FCC chairman=20
Michael Powell declined to reveal whether he had secured DOJ cooperation in=
=20
taking the case -- know as Brand X Internet Services vs. FCC -- to the high=
=20
court.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA419948?display=3DBreaking+News
(requires subscription)

SPECTRUM

FCC'S POWELL RETRACTS VOTE ON NEXTEL SPECTRUM REQUEST
Because of interference with emergency response radio systems caused by=20
Nextel's mobile phone service, the company devised a plan that would pay=20
the cost of relocating public safety radio services to a different portion=
=20
of the 800 Megahertz band, where both Nextel and the police radios operate,=
=20
and require the company to give up some of its airwaves in the 800 MHz=20
range in exchange for airwaves in the 1.9 Gigahertz band. But the rest of=20
the wireless industry has bitterly opposed the grant of 1.9 GHz spectrum.=20
The 10 MHz swath is the last remaining nationwide chunk in a band used by=20
most mobile phone providers. In March, FCC Chairman voted his support for=20
the Nextel "consensus" plan, but he has now withdrawn it. Chairman Powell=20
is considering granting Nextel spectrum in the 2.1 GHz range. Nextel has=20
opposed the idea for a variety of reasons, citing cost of adapting=20
equipment, inferior propagation characteristics of the band, and the fact=20
that some competitors are incumbent users on the band who would have to be=
=20
moved.
[SOURCE: Wall Street Journal, AUTHOR:Mark Wigfield=20
mark.wigfield( at )dowjones.com ]
http://online.wsj.com/article/0,,SB108508816822717284,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
WP: http://www.washingtonpost.com/wp-dyn/articles/A43621-2004May20.html
(requires registration)

POWELL: WIRELESS VITAL TO BROADBAND FUTURE
At the FCC Wireless Broadband Forum earlier this week, FCC Chairman Powell=
=20
said the Commission is looking at reallocating spectrum for broadcast=20
television to wireless and expanding bands in the 5GHz range to help meet=20
President Bush's goal of universally available broadband by 2007. These=20
goals "only will be met by the use of every possible tool in our broadband=
=20
tool kit," Chairman Powell said. "It will be critical that wireless play a=
=20
major role in our ability to provide these benefits to the American=20
consumer." Chairman Powell added that wireless has certain technical=20
advantages that allow companies to reach consumers in ways that wired=20
services can't. And by not relying on any one technology, the threat of=20
monopoly control and bottlenecks can be avoided. "From Day 1, we have been=
=20
working hard to change the traditional 'command and control' approach that=
=20
does not respect innovation and the need to move spectrum to its highest=20
and best uses. The bottom line is: All the raw material is there, the=20
recognition is there, and the understanding of its importance has begun to=
=20
gel," Chairman Powell said. "Now, all that is left is the easy part of=20
actually making it happen."
[SOURCE: C-Net|News.com, AUTHOR: Richard Shim]
http://news.com.com/Powell%3A+Wireless+vital+to+broadband+future/2100-10...
-5217044.html?tag=3Dnefd.hed
See full remarks at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-247411A1.doc

TELECOM

SPRINT'S ROLE AS WHOLESALER: 'ARMS DEALER' TO THE INDUSTRY
Volume, volume, volume. Sprint is moving to a business model of selling its=
=20
telecommunications services at a deep discount to other companies, which=20
then turn around and sell the service under their own brands -- competing=20
against Sprint. The next big customers on Sprint's horizon are telephone=20
companies who want to offer a complete bundle to customers -- local,=20
long-distance and wireless phone, high-speed Internet and TV service. "I do=
=20
see a year from now, a number of cable companies will see that wireless is=
=20
not only a very valuable service to offer, but required service to fulfill=
=20
some customers for the bundle," says Len J. Lauer, Sprint's president and=20
chief operating officer. Sprint has invested billion in expanding the=20
capacity of its networks and is trying to ensure a return on that=20
investment. But some analysts are scratching their heads. Sprint's "selling=
=20
point is they can offer an integrated bundle of services to large=20
enterprises, including wireless, which set them apart from the MCIs and=20
AT&Ts of the world -- now they've lost that advantage," said Patrick=20
Comack, a telecommunications analyst at Guzman & Co., an investment banking=
=20
firm that does work for Sprint. "It's basically giving your enemy another=20
weapon to defeat you."
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB108508486331117175,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

NEW YORK CLASSIFIES VONAGE AS PHONE COMPANY
In October 2003, a federal judge rejected an attempt by Minnesota's Public=
=20
Utilities Commission to regulate Vonage, saying its services fell outside=20
the traditional definition of a phone company. But on Wednesday, the New=20
York State Public Service Commission ruled that Vonage is a telephone=20
company and is thus subject to state regulation. The PSC added that it=20
hopes to apply "only minimal regulations to ensure that it does not=20
interfere with the rapid, widespread deployment of new technologies."
"While today's decision means that Vonage will be subject to some form of=20
regulation, we are limiting the effect of our decision to allow Vonage an=20
opportunity to address the framework of that regulation," PSC Chairman=20
William Flynn said in a statement.
[SOURCE: C-Net|News.com, AUTHOR: Evan Hansen]
http://news.com.com/New+York+classifies+Vonage+as+phone+company/2100-735...
5216639.html?tag=3Dnefd.top

INTERMODAL COMPETITION IN TELECOM: A VISION, NOT A REALITY
Are rules requiring the baby Bells to lease the elements of their networks=
=20
still necessary with all the phone choices consumers have? Yes, is the=20
answer of this report. Many of those choices are a vision, not a reality.=20
VoIP (Voice over Internet Protocol), which enables consumers to use their=20
broadband connection to make phone calls, is highly promising, but in its=20
infancy: only a few hundred thousand Americans now use VoIP as their main=20
residential phone service. Fiber to the home, which could greatly increase=
=20
communications options for consumers, also is in a start up phase.=20
Broadband over power lines consists of a few small pilot programs. Phone=20
over cable TV lines is available in only a handful of markets. And for most=
=20
Americans, cell phones are a complement, not a substitute, for the nation=92=
s=20
183 million copper phone lines.
[SOURCE: CompTel/ASCENT]
http://www.comptelascent.org/public-policy/federal-regulatory/documents/...
/intermodal_res_guide_may19_2004.pdf
CompTel/ASCENT is the largest association representing facilities-based=20
carriers, providers using unbundled network elements, global integrated=20
communications companies, and their supplier partners.

FCC'S NUMBER PORTABILITY RULE LIKELY TO HURT RURAL CARRIERS
Starting Monday, cellphone customers in small and midsize markets will gain=
=20
the same right their big-market cousins enjoy: They'll get to keep their=20
numbers when they switch carriers. Analysts think this could cause a wave=20
of defections from small carriers to large companies like Verizon and=20
Sprint. But about 900, or 90%, of rural wireline companies have asked state=
=20
regulators for delays of several months.
[SOURCE: USAToday, AUTHOR:Paul Davidson]
http://www.usatoday.com/usatonline/20040521/6223180s.htm

INTERNET

CAN-SPAM ACT
Members of the Senate Commerce Committee heard testimony on the=20
effectiveness of the CAN-SPAM Act and the anticipated effect of new=20
anti-spam initiatives in curtailing the delivery of unwanted e-mail, known=
=20
as spam, to consumers. See links to testimony at the URL below.
A report on the hearing from Reuters (see link below) focuses on the=20
comments of spammer Ron Scelson who said he is now complying with the law,=
=20
but would start using deceptive tactics if large Internet Service Providers=
=20
like America Online continue to block his messages. He sends out=20
approximately 30 million messages a day (one-third of which are apparently=
=20
targeted at this email address) promoting a range of businesses from eBay=20
to car warranties.
[SOURCE: US Senate]
http://commerce.senate.gov/hearings/witnesslist.cfm?id=3D1199
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DYRCHBSP1B1NHQCRBAE...
A?type=3DinternetNews&storyID=3D5210736
See a similar article in the Washington Post
http://www.washingtonpost.com/wp-dyn/articles/A43622-2004May20.html
(requires registration)
See Also:
CAN-SPAM LAW NOT DOING THE JOB, SENATE COMMITTEE TOLD
Since the federal anti-spam law went into effect in January, consumers=20
appear to be receiving as much unwanted e-mail as ever, and Congress should=
=20
refine the law to make it more effective in blocking spam, the president of=
=20
Consumers Union testified today before a Senate committee. Jim Guest,=20
president of the non-profit publisher of Consumer Reports, told the Senate=
=20
Commerce Committee that 80 percent of respondents in a national online=20
survey conducted by the magazine reported no reduction in spam during the=20
three months after the law went into effect. About two-thirds also noted=20
that spam comprised at least half of their e-mails. =93In order to truly=20
can-spam, Congress will need to update the law to keep abreast of new=20
developments in technology, such as wireless spam, and keep on the trail of=
=20
elusive spammers who are finding new ways to beat spam filters and evade=20
anti-spam technologies,=94 Guest said. Guest said the magazine recommended=
to=20
policymakers in August that the law allow consumers to =93opt-in=94 to spam=
=AD=20
meaning they must give their permission to be e-mailed. However, the law=20
Congress passed only allows consumers to =93opt-out=94 of spam =AD meaning a=
=20
consumer must respond to each unwanted e-mail and ask not to be sent the=20
messages. =93We recommend consumers not click on unsubscribe or =91opt-out=
=92=20
links, as this may signal a spammer that the user=92s e-mail address works,=
=20
causing them to get more spam,=94 Guest said. =93Unfortunately, this leaves=
=20
users in a difficult position with perhaps no real remedy against spam for=
=20
the time being. =93Our bottom line is Congress should not place the burden=
on=20
consumers to fight the flood of spam, the burden should be on the=20
marketers,=94 he said. =93If we can stop solicitors from ringing our=
doorbells,=20
if we can stop solicitors from calling us at home, then there should be the=
=20
same protection in our view to stop spam.=94
[SOURCE: Consumers Union Press Release]
http://www.consumersunion.org/pub/core_telecom_and_utilities/001138.html...
e

WWW CONFERENCE MULLS WEB AS PERSONAL MEMORY STORE
Imagine you could recall every interesting conversation you have ever held=
=20
in your life -- every waking moment even. Some of us think we can (or did=20
before we had children, of course). But with advances in digital recording=
=20
and storage devices, one day we might be able to access any moment from our=
=20
lives instantly. Top Internet researchers attending the annual World Wide=20
Web conference in New York this week are wondering what it will mean. Now=20
that I've piqued your interest, there's other topics being covered, too,=20
like how to create a smarter "back" button on Internet browsers. Check it=20
out at http://www.www2004.org
[SOURCE: Reuters, AUTHOR: Eric Auchard]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DZUFN5Q4TAVEAGCRBAE...
A?type=3DtechnologyNews&storyID=3D5209463=20

--------------------------------------------------------------
Have a great weekend!

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. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.

For upcoming media policy events, see http://www.benton.org/calendar.htm
--------------------------------------------------------------

Two big events in Washington today. The House Subcommittee on=20
Telecommunications and the Internet will hold a hearing on competition in=20
the communications marketplace and the FCC is holding the Wireless=20
Broadband Forum. For these and other upcoming media policy events, see=20
http://www.benton.org/calendar.htm

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. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.

TELEVISION & RADIO
FCC to Audit Broadcasters This Month Under New EEO Rules
Congress Cans a la Carte
The Political Endurance Test
Barton: Cable Indecency Law Coming
Stations Seek Preemption Assurance
Center for Rural Strategies Opposes "Amish in the City"

TELECOM
Rural Telephone Executives Lobby Capitol Hill
SBC Faces Possibility of Strike As Union Gives 24-Hour Notice

MEDIA & POLITICS
Bush's Site Neck and Neck with Kerry's in Traffic Race

TELEVISION & RADIO

FCC TO AUDIT BROADCASTERS THIS MONTH UNDER NEW EEO RULES
Within several weeks, the FCC will send audit letters to about 550 radio=20
stations, 70 TV stations and 70 multichannel video program distributor=20
(MVPD) units, including 5% of cable operators, said Lewis Pulley, Assistant=
=20
Chief of the Policy Division in the FCC=92s Media Bureau, at a National=20
Association of Broadcasters Human Resource Managers meeting Tuesday. The=20
action comes after criticism from the United Church of Christ and other=20
supporters of equal employment opportunity rules. "Given that the new=20
broadcast EEO rules did not go into effect until March 10, 2003, audits=20
conducted in calender year 2003 would not have been productive as=20
broadcasters would not have had ample time to comply and document their=20
compliance with the new regulations,=94 FCC Chairman Powell said. By giving=
=20
broadcasters a year to document
compliance, as broadcast licenses are renewed, they can prepare public file=
=20
reports to the Commission for review, said Chairman Powell. In addition,=20
under the new rules, broadcasters have to adopt supplemental recruitment=20
initiatives over 2 years. It would have been =93extremely difficult=94 for=
=20
broadcasters to comply given the short period
between the effective date of the rules and the audits had they been=20
conducted last year, Chairman Powell said: =93Indeed, for this reason, some=
=20
claim that a truly meaningful audit cannot be conducted until the initial=20
2-year period has passed.=94
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

CONGRESS CANS A LA CARTE
Rep Nathan Deal (R-GA) announced Tuesday that he is withdrawing the a la=20
carte amendment he planned to offer when the House Commerce Committee votes=
=20
on satellite TV legislation next month. Instead, House Commerce Committee=20
Chairman Joe Barton (R-TX) and House Telecommunications Subcommittee=20
Chairman Fred Upton (R-MI) will ask the FCC to study the feasibility of an=
=20
a la carte requirement. Rep Barton told the American Cable Association that=
=20
there was not enough support for a la carte yet.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA419133?display=3DBreaking+News
(requires subscription)
Multichannel news:=20
http://www.multichannel.com/article/CA419079?display=3DBreaking+News

THE POLITICAL ENDURANCE TEST
Why, many critics ask, should people have to pay for offensive fare they=20
don't want? Why not let customers buy a =93family-friendly tier=94 of=20
programming or, better yet, customize their own family-friendly tier by=20
choosing a set number of channels on their own via the a la carte model?=20
=93Some networks would not survive in that environment,=94 says Jill=
Luckett,=20
vice president of program network policy at the National Cable &=20
Telecommunications Association. Creating a small tier of 10 or so=20
"family-friendly" channels would mean less viewers for those stations, the=
=20
cable industry argues, and advertisers would demand lower rates. That would=
=20
eventually put upward pressure on license fees, which would trickle down to=
=20
consumers. =93I just don't buy the economic-model argument,=94 says Laura=20
Mahaney, director of corporate and entertainment affairs of the Parents=20
Television Council. Rather than reduce advertising dollars for programmers,=
=20
Mahaney says niche tiers of programming (in which viewers would pay a flat=
=20
rate for a certain number of channels from an a la carte menu) could give=20
advertisers far more targeted information about viewers =97 raising what=
they=20
pay on a per-subscriber basis. It is unclear whether a la carte or=20
mini-tier legislation will become a reality at some point.
[SOURCE: Multichannel News, AUTHOR: Michael Grebb]
http://www.multichannel.com/article/CA417514?display=3DSupplement&promoc...
=3DSUPP
(requires subscription)

BARTON: CABLE INDECENCY LAW COMING
House Commerce Committee Chairman Joe Barton (R-TX) is again saying=20
publicly that he expects that the cable industry will need to comply with=20
broadcast-indecency rules in the near future. =93It=92s not something we=92r=
e=20
going to do right away, but it=92s an issue that=92s time has come, in my=20
opinion,=94 Rep Barton said in comments Tuesday to the American Cable=20
Association. =93I think we=92re approaching the time where whatever we apply=
to=20
the broadcasters in some way -- voluntarily or involuntarily -- is going to=
=20
be applied to cable. I know that causes some of you folks heartburn, and it=
=20
probably should. But you deserve to hear the truth from the chairman of the=
=20
committee.=94 Rep Barton has made the point that because cable and satellite=
=20
are viewed in more than 90 percent of U.S. homes, =93most Americans don't=20
differentiate between over-the-air and cable or satellite.=94
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA419180?display=3DBreaking+News
(requires subscription)

STATIONS SEEK PREEMPTION ASSURANCE
The Network Affiliated Stations Alliance believes that affiliation=20
agreements of all big networks but CBS "impermissibly prevent and hinder=20
affiliates from exercising discretion expressly protected" by FCC rules.=20
The television stations are seeking protection of the right-to-reject rule.=
=20
The stations say affiliates they are motivated by their desire to turn down=
=20
shows that would be "unsatisfactory or unsuitable" to local audiences or=20
when an affiliate wants to substitute programming of greater local or=20
national importance. The FCC is likely to decide on a petition from the=20
group in coming months and NASA has been lobbying for support in Congress.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA419221?display=3DBreaking+News
(requires subscription)

CENTER FOR RURAL STRATEGIES OPPOSES "AMISH IN THE CITY"
Advocates for rural America today launched a newspaper advertising campaign=
=20
taking on CBS President Leslie Moovnes and UPN television over a proposed=20
reality show, =93Amish in the City.=94 The Center for Rural Strategies, a=
small=20
nonprofit organization based in eastern Kentucky, is running a quarter-page=
=20
advertisement on the op/ed page of Wednesday Philadelphia Inquirer. The ad=
=20
criticizes Moonves and UPN for attempting to make corporate profits by=20
ridiculing Amish youth and rural Americans. The proposed show would=20
transplant Amish teens to a major metropolitan area, place temptation in=20
their path, and tape the teens=92 ensuing struggles of faith. =93What kind=
of=20
person could relish millions of viewers snickering as vulnerable Amish=20
youth are sent up by TV producers for a humiliating up-close and personal=20
fall from grace?=94 the ad asks. Last year, Rural Strategies helped organize=
=20
a national campaign to stop CBS Television from producing a reality show=20
based on =93The Beverly Hillbillies,=94 in which a rural family=92s staged=
=20
encounters with southern California affluence and pop culture would have=20
served as the plotline. CBS is owned by Viacom, which also owns UPN. =93Thes=
e=20
so-called reality show concepts demonstrate how out of touch media giants=20
like Viacom are from real issues in the United States,=94 said Dee Davis,=20
president of the Center for Rural Strategies. =93To them, rural Americans=20
have stopped being real people and become a laugh track that=92s only there=
=20
to generate corporate profits. Any indignity, even testing the religious=20
faith of young people, is just fine as long as it brings in advertising=20
revenue. Well, Viacom is wrong, again.=94 Rural America comprises 80 percent=
=20
of the land area in the United States and is home to 55 million people, or=
=20
20 percent of the U.S. population.
[SOURCE: Center for Rural Strategies Press Release]
http://www.ruralstrategies.org/amish/5.19.release.html

TELECOM

RURAL TELEPHONE EXECUTIVES LOBBY CAPITOL HILL
Members of the Organization for the Promotion and Advancement of Small=20
Telecommunications Companies (OPASTCO) are in Washington, DC this week=20
asking Congress to reform universal service. There are four points the=20
organization wants to deliver: 1) Congress should voice =93strong=20
disapproval=94 of the recommendation by the Federal-State Joint Board to=20
restrict universal service funding to one =93primary=94 phone line per=20
customer. 2) Congress should urge the FCC to adopt a universal service=20
funding methodology for new competing telecos that=92s based on their own=20
costs rather than the costs of the incumbents they compete against. 3) The=
=20
Telecom Act should be amended to assess both intrastate and interstate=20
revenue for contributions to the universal service fund; only interstate=20
revenue is assessed now. 4) The base of contributors should be broadened to=
=20
include =93all facilities-based broadband Internet access providers,=94=20
including cable modem and other broadband platforms. While in town, the=20
representatives of small, independently owned local exchange carriers will=
=20
probably also do some shopping and maybe see a show.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

SBC FACES POSSIBILITY OF STRIKE AS UNION GIVES 24-HOUR NOTICE
102,000 members of the Communications Workers of America may strike against=
=20
SBC Communications as early as today at 1pm (eastern). Over the last three=
=20
years, SBC has eliminated 29,000 union jobs from its core local-phone=20
business while not allowing union members to take jobs in expanding growth=
=20
areas of the company's business such as digital subscriber lines (DSL);=20
long-distance; and Wi-Fi, which provide wireless Internet connections.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com ]
http://online.wsj.com/article/0,,SB108492424805815246,00.html?mod=3Dtoda...
s_personal_journal
(requires subscription)
SJMerc:=20
http://www.mercurynews.com/mld/mercurynews/business/technology/8701598.htm

MEDIA & POLITICS

BUSH'S SITE NECK AND NECK WITH KERRY'S IN TRAFFIC RACE
According to Nielsen/NetRatings, U.S. visitors to the Sen Kerry's campaign=
=20
Web site numbered 1.6 million last month, while President Bush's site=20
attracted 1.5 million visitors. Sen Kerry, according to Nielsen/NetRatings,=
=20
has a huge lead over President Bush in online advertising impressions, or=20
the number of times an online ad is viewed. In April, Sen Kerry's online=20
ads scored 52 million impressions to President Bush's paltry 5,000. But=20
figures for online ads sponsored by candidates' parties show Republican=20
efforts dwarfing those of Democrats, with 113 million impressions for=20
Republican National Committee-sponsored ads and 63,000 for ads sponsored by=
=20
the Democratic National Committee.
[SOURCE: C-Net|News.com, AUTHOR: Paul Festa]
http://news.com.com/2100-1028_3-5215121.html?tag=3Dnefd.hed
--------------------------------------------------------------

This week's policy events include Congressional hearings on competition in
the communications marketplace and the CAN-SPAM Act, as well as the FCC's
Wireless Broadband Forum. For more media policy events, see
http://www.benton.org/calendar.htm

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

TELEVISION & RADIO
FCC's Localism Task Force Public Hearing in Rapid City, South Dakota
More Money for Broadcast Networks
The Political Standard
Indecency Bill Prospects Dimming
Some A La Carte Calls Cite Net 'Porn'
Masses Tune Into HDTV
With Second Channel, FM Branches Out
NFCB Seeks Unit to Assist Native Radio

TELECOM
AT&T Is Rebuffed By Regional Bells On Arbitration
Ventures Aim to Cut Cost of Overseas Cell Calls to Pennies
Craig McCaw's Secret Plan
New Telephone Subscribership Report

FUNDING FOR INDEPENDENT PRODUCERS

TELEVISION & RADIO

FCC'S LOCALISM TASK FORCE PUBLIC HEARING IN RAPID CITY, SOUTH DAKOTA
The FCC's Localism Task Force will meet Wednesday evening May 26 in Rapid
City, South Dakota. The purpose of the hearing is to gather information
from consumers, industry, civic organizations, and others on broadcasters'
service to their local communities. An important focus of the hearing will
be to gather information and to conduct outreach for the ongoing nationwide
round of broadcast station license renewals. The designated speakers will
include representatives from consumer and advocacy groups as well as
broadcasters. The hearing format will enable members of the public to
participate via an "open microphone" session. Additional details regarding
the designated speakers, agenda, and hearing format will be announced shortly.
For additional information about the hearing or the Localism Task Force,
please visit the Task Force's website at http://www.fcc.gov/localism, or
contact the Task Force directly at 202-418-7777, or at
localism( at )fcc.gov. Press inquiries should be directed to Michelle Russo at
202-418-2358, or Meribeth McCarrick at 202-418-0654.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1380A1.doc

MORE MONEY FOR BROADCAST NETWORKS
This week, television broadcasters will introduce their 2004-5 prime-time
schedules and will be trying to charge more for ad time - even though
ratings for the 2003-4 season among viewers ages 18 to 49, the ones most
coveted by advertisers, are expected to decline about 6 percent from
2002-3. Forecasts call for an estimated revenue increase for the
broadcasters - ABC, CBS, Fox, NBC, UPN and WB - of 3 to 5%, to $9.6 billion
to $9.8 billion, from $9.3 billion sold in the upfront market in spring
2003 ahead of the 2003-4 season. By comparison, the $9.3 billion
represented an increase of 15 percent over the $8.1 billion sold in spring
2002 ahead of the 2002-3 season. "Cable TV is going to make gains year to
year because the dollars are following the eyeballs," said Andy Donchin,
executive vice president and director for national broadcast at Carat North
America in New York, referring to cable's rising viewership because of
popular series like "Monk" on USA and "Punk'd" on MTV. "But I and my fellow
buyers still see a great inherent value in broadcast network television,"
said Mr. Donchin. "It still brings a lot to the table for us." Broadcast TV
is still the place to find very large audiences. And the advertisers that
are likely to increase their spending this year are the ones who favor TV:
"big box" retailers like Lowe's, Kohl's, Wal-Mart, Target, fast food,
movies, prescription drugs and telecommunications.
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
http://www.nytimes.com/2004/05/17/business/media/17adcol.html
(requires registration)
WSJ: For Big Marketers Like AmEx, TV Ads Lose Starring Role
http://online.wsj.com/article/0,,SB108474859657412894,00.html?mod=todays...
(requires subscription)

THE POLITICAL STANDARD
The Alliance for Better Campaigns is a public interest group that seeks to
improve elections by promoting campaigns in which the most useful
information reaches the greatest number of citizens in the most engaging
ways. ABC believes that broadcasters can and must use the publicly-owned
airwaves to revitalize our democracy and is working to put meaning back
into broadcasters' statutory obligation to serve the public interest. ABC
publishes an occasional magazine, The Political Standard, and this month's
issue contains a number of stories of interest for media reformers:
* Public Interest, Public Airwaves Coalition Kicks Off National Campaign at
Broadcasters' Trade Show in Vegas
Calling current local news coverage of politics and civic affairs
"pathetic" and "pitiful," Federal Communications Commissioners Michael
Copps and Jonathan Adelstein endorsed a proposal by the newly formed Public
Interest, Public Airwaves Coalition (PIPAC) that calls for stronger public
interest obligations for broadcasters.
* Network News Coverage of '04 Primaries Falls Short, Study Finds
According to a new study by the Alliance for Better Campaigns, the four
major networks (ABC, CBS, NBC and Fox) devoted just eight percent of their
news hole to election coverage in the two weeks leading up to the Super
Tuesday primaries.
* Station Groups Make Plans for 2004 Election Coverage
Five broadcast companies have pledged to provide air time for candidates on
their television stations in the fall campaign.
* On Broadcast Television, A Failure To Communicate
A message from the groups executive director, Meredith McGehee
* Why Hearst-Argyle Television Believes in Political Coverage
A piece by Candy Altman, Vice President for News at Hearst-Argyle Television
* Coalition Proposes New Guidelines for Civic Discourse As FCC Considers
Rules for Digital Broadcasters
[SOURCE: Alliance for Better Campaigns]
http://www.bettercampaigns.org/standard/display.php?IssueID=44

INDECENCY BILL PROSPECTS DIMMING
With just over a month of working days left in the current Congress,
prospects are dimming for passing legislation aimed at curbing indecent
broadcast content. The main hurdle appears to be in the Senate where John
Sununu (R-NH) will hold up the bill unto provisions to block the FCC's
relaxation of media ownership rules are removed. The odds on the bill are
now 50/50 as the memory of Janet Jackson slowing melts away.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA417967?display=Breaking+News
(requires subscription)

SOME A LA CARTE CALLS CITE NET 'PORN'
"On cable television, you've got programming that is, in essence, soft-core
pornography in the basic package, such as on MTV," says Janet M. LaRue,
chief counsel of Concerned Women for America, a 500,000-member organization
with a right-of-center agenda. Concerned Women are leading a fight in
Congress to introduce a la carte pricing of pay-TV services, allowing
consumers to pay only for the channels they want. Consumer groups are also
part of the effort, arguing that it could lower cable bills. But the cable
industry does not like the plan and is fighting against it. "Cable
television is sold as a bundle of channels, which offers the best value to
consumers," National Cable & Telecommunications Association Brian Dietz
spokesman said. "Any move toward an a la carte mandate would only result in
less choice and higher prices for consumers."
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA417950?display=Top+Stories
(requires subscription)

MASSES TUNE INTO HDTV
High definition television offers prettier pictures and better sound. And
people are starting to buy up HDTV sets. According to the Consumer
Electronics Association, manufacturer-to-dealer digital TV sales for the
first quarter of 2004 totaled 1.39 million, a 104% climb over the same
period in 2003. By 2007, nearly one-third of American households will be
tuning in to HD programs. "Two or three years ago, people were calling HDTV
a failure," says Gary Shapiro, chief executive of the CEA. Today, Shapiro
says, "I have very little worries." The price of HDTV sets are falling
10-30% per year and more HDTV content is available: As of late February,
CBS was airing 27 hours a week of its usual programming in HD, not counting
specials. NBC and ABC were broadcasting 21 hours and 13 hours of usual
programming, respectively.
[SOURCE: USAToday, AUTHOR:Edward C. Baig]
http://www.usatoday.com/usatonline/20040517/6206905s.htm

WITH SECOND CHANNEL, FM BRANCHES OUT
As the FCC considers rule for digital radio, stations are beginning to
think about how they will use the technology to serve their communities.
Digital radio technology allows broadcasters to split one FM channel into
two. Stations' plans to use the second channel include more musical
programming, re-airing local programming at different times, running longer
versions of interviews used in shows, serving foreign-language audiences
and neighborhood-targeted programming for young people. National Public
Radio pioneered the technology under the name Tomorrow Radio and is helping
to introduce it to both stations and listeners. Assuming the FCC approves
the signal split, NPR will provide two free streams for stations: Classical
Public Radio Network and a news/talk stream still in development with help
from Public Radio Program Directors Association.
[SOURCE: Current, AUTHOR: Mike Janssen]
(http://www.current.org/)

NFCB SEEKS UNIT TO ASSIST NATIVE RADIO
The National Federation of Community Broadcasters has asked the Corporation
for Public Broadcasting for more than $1 million to establish a Center for
Native Radio to seek out nontraditional funding sources for the
approximately 30 radio stations serving Native American audiences. The
center would help very small radio stations with grant applications and
technical support. Traditional funding models for public radio stations --
membership drives and underwriting campaigns -- simply don't work at
reservation-based stations, said Carol Pierson, president of NFCB,
explaining the need for the center. The populations are too small and too
rural, businesses and industry are lacking, unemployment is usually rampant
and the more educated people tend to move away.
[SOURCE: Current, AUTHOR: Geneva Colins]
http://www.current.org/minority/minority0408native.shtml

TELECOM

AT&T IS REBUFFED BY REGIONAL BELLS ON ARBITRATION
On Friday, AT&T Chief Executive David Dorman said the company is
"frustrated by the lack of progress in negotiations to date," and called
for the use of arbitration to break the impasse with Baby Bells. Parties to
arbitration must abide by the final agreement. But the Bells have rebuffed
the proposal. Mark Cooper of the Consumer Federation of America backed
AT&T's call for arbitration. The group is concerned that higher wholesale
rates could raise prices for consumers or price Bell competitors out of the
market. "AT&T has realized that the Bells are not interested in a
reasonable solution and has upped the ante by proposing binding
arbitration," Mr. Cooper said. "This approach can provide the needed
breakthrough that levels the playing field among competitors and ensures
long-term competition to the benefit of consumers."
[SOURCE: Wall Street Journal, AUTHOR: Mark Wigfield
mark.wigfield( at )dowjones.com ]
http://online.wsj.com/article/0,,SB108458420969712296,00.html?mod=todays...
(requires subscription)

VENTURES AIM TO CUT COST OF OVERSEAS CELL CALLS TO PENNIES
Internet telephone services are coming to cell phones now and could greatly
reduce the costs of making wireless international calls. "It puts the
cellphone providers under attack for the first time," said Rick Scherle,
vice president for marketing at i2Telecom. "The land-line guys have been
wrestling this technology," he said. "We're telling the cellphone guys that
you have to grapple with it now, too." Cellphone calls to London, for
example, are usually $1.75/minute. Using InternetTalker, a cellphone user
would pay just the price of a local call plus three cents per minute.
[SOURCE: New York Times, AUTHOR: Ken Belson & Matt Richtel]
http://www.nytimes.com/2004/05/17/business/17voip.html
(requires registration)

CRAIG MCCAW'S SECRET PLAN
What's Craig McCaw up to? This is the talk of the telecom industry. The man
who put together the first nationwide cellular company -- and sold it to
AT&T for $11.5 billion -- is now buying companies in the wireless broadband
sector. Over the next two years, the costs of wireless broadband are
expected to drop to the point where it can be competitive -- anyplace in
the country -- with traditional wired service from cable and telephone
companies. With the radio licenses he's purchased, Mr McCaw could offer
coast-to-coast Net service at speeds roughly the same as today's broadband.
Insiders say he may soon be offering wireless broadband Internet access
with local and long distance phone service bundled in for $40-$50/month --
a similar bundle from a telephone company costs consumers $100/month now.
[SOURCE: BusinessWeek, AUTHOR: Andrew Park]
http://www.businessweek.com/magazine/content/04_21/b3884110_mz063.htm

NEW TELEPHONE SUBSCRIBERSHIP REPORT
On Friday, the FCC released its latest report on telephone subscribership
levels in the United States, showing that approximately 94.7% of all
households had telephone service. The report presents subscribership
statistics based on the Current Population Survey (CPS) conducted by the
Census Bureau in November 2003. The report also shows subscribership
levels by state, income level, race, age, household size, and employment
status. Highlights include: 1) The telephone penetration rate was 79.4% for
households with annual incomes below $5,000, while the rate for households
with incomes over $75,000 was 98.4%. 2) By state, the penetration rates
ranged from a low of 89.7% in Arkansas to a high of 98.0% in Maine. 3)
Households headed by whites had a penetration rate of 95.5%, while those
headed by blacks had a rate of 89.7% and those headed by Hispanics had a
rate of 90.5%. 4) By age, penetration rates ranged from 86.5% for
households headed by a person under 25 to 97.0% for households headed by a
person over 70. 5) Households with one person had a penetration rate of
91.7%, compared to a rate of 96.2% for households with four or five
persons. 6)The penetration rate for unemployed adults was 92.2%, while the
rate for employed adults was 95.9%.
This report is updated three times a year and is available online from the
FCC-State Link Internet site at http://www.fcc.gov/wcb/iatd/stats.html. For
more information contact Alexander Belinfante at (202) 418-0944
[SOURCE: FCC]
(http://www.fcc.gov)

FUNDING FOR INDEPENDENT PRODUCERS

LOCAL INDEPENDENTS COLLABORATING WITH STATIONS (LInCS) FUND provides
incentive or matching moneys ($10,000-$75,000) to partnerships between
public television stations and independent producers. Single shows in any
genre (including documentary, drama, animation or innovative combinations)
will be considered. Projects may be in any stage of development. Deadline
for applications is May 26. For additional information email
Elizabeth_Meyer( at )itvs.org or call 415-356-8383 x270.
[SOURCE: Independent Television Service]
http://www.itvs.org/producers/funding.html
--------------------------------------------------------------