June 2004

Benton's Communications-related Headlines for 6/07/04

For upcoming media policy events, see 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.

MEDIA
LPFMs Could Get Big-City Addresses
Advisory Committee on Diversity for Communications in the Digital Age
The Squeeze Play
Move to Stiffen Decency Rules Is Losing Steam in Washington
Kerry Opposes Cable Indecency Crackdown
To Watch These Programs on Cable, You Have to Find Them First

BROADBAND
NTIA Files Comments with FCC on Broadband Over Power Line Systems

MEDIA

LPFMs COULD GET BIG-CITY ADDRESSES
Sens. John McCain (R-AZ) and Patrick Leahy (D-VT) are sponsoring=20
legislation that will expand the FCC's low power FM service into urban=20
markets. Their bill would remove tight interference restrictions imposed by=
=20
Congress that largely limit the service to rural and mid-sized markets. The=
=20
restrictions currently require a low power station to have at least two=20
vacant channels between it and a full power station. That spacing has=20
prevented low power stations from operating in most big markets, where=20
radio dials are crowded. Advocates for the fledgling FM service said=20
passing the legislation would allow the ranks of LPFM stations to increase=
=20
from more than 700 authorized today to more than 1,000.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA423579?display=3DBreaking+News
(requires subscription)
Reactions to the legislation:
Media Access Project http://www.mediaaccess.org/press/LPFMSenatePR6-4-04.pdf
Free Press http://www.freepress.net/news/release.php?id=3D19
National Assoc. of Broadcasters=20
http://www.nab.org/Newsroom/PressRel/statements/S1004.htm
Prometheus Radio=20
Project http://www.prometheusradio.org/release_june_4th_mccain_lpfm.doc

ADVISORY COMMITTEE ON DIVERSITY FOR COMMUNICATIONS IN THE DIGITAL AGE
The Advisory Committee on Diversity for Communications in the Digital Age=20
was formed by FCC Chairman Michael Powell in the summer of 2003. Its=20
mission is to provide guidance to the Commission on policies and practices=
=20
that could increase the diversity of ownership and could create=20
opportunities for minorities and women to advance to managerial positions=20
in the communications sector as well as other related sectors of the=20
economy. The Committee's 3rd meeting will be Monday, June 14. The=20
meeting's agenda will include interim reports from the Diversity=20
Committee's four subcommittees regarding progress towards the final report=
=20
to the Commission: Career Advancement, New Technologies, Financial Issues=
=20
and Transactional Transparency. The reports will be followed by group=20
discussion and public comment. Further details about the Committee are=20
posted on the FCC website at: http://www.fcc.gov/DiversityFAC/ or contact=20
Jane E. Mago (202) 418-2030.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-248000A1.doc

THE SQUEEZE PLAY
Broadcasters are feeling the political heat to return the spectrum licenses=
=20
the use to deliver analog TV. House Commerce Chairman Joe Barton (R-TX)=20
came out in favor of a quick return of the spectrum during a hearing last=20
week and Sen John McCain has scheduled a hearing on the FCC's proposed=20
transition plan for Wednesday. Sen McCain may also endorse the FCC plan=20
which would count all cable subscribers as digitally served by local=20
broadcasters=97even if subscribers don't have a digital set. Satellite=20
subscribers would also count, provided they buy local-channel packages. FCC=
=20
Media Bureau Chief Ken Ferree predicts the spectrum giveback could be=20
January 1, 2009, if the plan is adopted.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA423586?display=3DWashington
(requires subscription)

MOVE TO STIFFEN DECENCY RULES IS LOSING STEAM IN WASHINGTON
Although the House passed legislation that would greatly increase the=20
financial penalties on broadcasters found to have violated standards of=20
decency, similar legislation in the Senate is being held up in part because=
=20
the majority has had trouble passing and major bills and in part because of=
=20
controversial provisions in the Senate bill including curbing violent=20
content on television and rolling back the FCC's media ownership rules=20
adopted last year. The House bill, by contrast, focused just on raising the=
=20
financial penalties of broadcasters, fees that have not been raised in=20
decades. "These are the public airwaves,'' said Rep Fred Upton (R-MI) who=20
introduced the House bill. "Every FCC commissioner, regardless of whether=20
Republican or Democrat, has called for higher fines, as over-the-air=20
broadcasters have clearly skirted the line on decency.'' If the Senate and=
=20
House are able to forge common ground, the result is likely to involve some=
=20
attempt - probably in a broader, unrelated bill, - to raise the penalties=20
on broadcasters - though by how much is unclear.
[SOURCE: New York Times, AUTHOR: Jacques Steinberg]
http://www.nytimes.com/2004/06/07/business/media/07decency.html
(requires registration)

KERRY OPPOSES CABLE INDECENCY CRACKDOWN
In an interview with C-SPAN over the weekend, Sen John Kerry (D-MA) said he=
=20
does not think broadcast indecency rules should be applied to pay-TV=20
services. "I think there is a distinction between public broadcast and the=
=20
notions we've had historically about family time, family hour=97and what you=
=20
buy privately and personally," Sen Kerry said. "I am not in favor of=20
government interference and censorship and restriction of what an=20
individual privately can decide to do in their home, in their own space, so=
=20
to speak," he said, but he did seem to be OK with broadcast indecency=20
regulation "where you have children involved, where you have a broader=20
cross-section of the public, where there is sort of a sense of family time=
=20
or hour." He also spoke in opposition to the FCC's new media ownership=20
rules. "I think that too much media in the hands of one powerful entity or=
=20
one individual is a mistake. I think it runs counter to the foundation of=
=20
our country. I think it runs counter to the need for Americans to know=20
that they are getting news and information from multiple sources that are=20
not singularly controlled."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA423410?display=3DBreaking+News
(requires subscription)

TO WATCH THESE PROGRAMS ON CABLE, YOU HAVE TO FIND THEM FIRST
In the increasingly cluttered world of cable television, the new frontier=20
for start-up channels is video on demand where they will have to attract=20
viewers without having a designated channel number. Viewers have to seek=20
out this programming. "Their concerns about 'no one will find us' are well=
=20
founded," said Stephen Hasker, an analyst at McKinsey & Company. For=20
viewers to seek out on-demand channels, he added, "there is a mind shift=20
that is required." For cable companies, the move is imperative because of=20
new demands on bandwidth -- digital channels, scores of little-watched=20
channels and telephony.
[SOURCE: New York Times, AUTHOR: Ken Belson]
http://www.nytimes.com/2004/06/07/business/media/07cable.html
(requires registration)

BROADBAND

NTIA FILES COMMENTS WITH FCC ON BROADBAND OVER POWER LINE SYSTEMS
The Commerce Department=92s National Telecommunications and Information=20
Administration on Friday filed comments with the FCC providing technical=20
guidance for the responsible deployment of broadband over power line (BPL)=
=20
systems and urging the Commission to complete its BPL rulemaking proceeding=
=20
without delay. On April 26, President Bush called for the establishment of=
=20
technical standards to make possible new broadband technologies such as the=
=20
use of high speed communications directly over power lines. On April 27,=20
NTIA released a Phase One study that examined the potential interference to=
=20
federal government radio systems that could result from the deployment of=20
BPL, and identified appropriate techniques that will mitigate this=20
interference. The comments filed Friday build upon the results of NTIA=92s=
=20
Phase One study by providing technical analysis of the issues raised in the=
=20
FCC=92s BPL Notice of Proposed Rulemaking (NPRM). NTIA=92s comments,=
together=20
with the rules proposed in the FCC=92s NPRM will reduce the risk of=20
interference to critical federal radiocommunication systems, and provide a=
=20
firm technical foundation for the responsible deployment of BPL. NTIA=92s=20
comments endorse the Commission=92s proposed field strength limits and=20
provide recommendations for reducing the risk of interference to authorized=
=20
radiocommunication systems. Specifically, NTIA recommends the use of=20
mandatory power control, adoption of limited coordination areas and=20
exclusion of critical frequency bands. NTIA also made recommendations=20
regarding refinements to the FCC=92s proposed compliance measurement=20
procedures for BPL systems. NTIA expects to complete its Phase Two study=20
later this year. However, in order to quickly address issues that have an=20
immediate impact on the FCC=92s rulemaking, the most significant issues=20
considered in the comprehensive Phase Two study are provided in a technical=
=20
appendix of today=92s filing. NTIA expects its Phase Two study to complement=
=20
any conclusions reached by the Commission and, therefore, recommends that=20
the Commission=92s rulemaking proceed without delay.
[SOURCE: NTIA]
http://www.ntia.doc.gov/ntiahome/press/2004/bpl_06042004.htm
--------------------------------------------------------------

Benton's Communications-related Headlines for 6/04/04

TELECOM
Phone Lobbies Push Hard on Local Access
FCC Open Meeting Agenda

MEDIA
Birds Keep Feeding Distant Signals
TV, Games Blamed for Obesity

QUICKLY
Powell Speech to Wireless Communications Association International
New Wireless Systems Push 3G Onto the Defensive
Web Porn Entices Far More Surfers Than Search
Bush FTC Nominee a Triple Threat

TELECOM

PHONE LOBBIES PUSH HARD ON LOCAL ACCESS
The Bush Administration must choose sides between long-distance telephone
companies such as AT&T and MCI and regional phone giants, including
Verizon, BellSouth and SBC. At stake is whether local phone rates will go
up for 19 million people -- which in turn could have consequences in the
presidential campaign -- and what companies will dominate the highly
volatile telecommunications industry. Solicitor General Theodore B. Olson
has a June 15 deadline to decide whether to appeal a federal court ruling
that would void regulations that govern the commercial interaction between
phone companies. The U.S. Court of Appeals for the D.C. Circuit ruled in
March that the regional firms can no longer be forced by the federal
government to allow long-distance and other telephone firms to lease their
lines at discounted rates set by state regulators. If SG Olsen appeals the
ruling, phone rates will probably stay the same for months -- at least
after the election in November. If he does not file an appeal, local
telephone rates could go up and CompTel/Ascent, which represents
competitors to local phone companies, has prepared political commercials
against President Bush for allowing that to happen, threatening to run
those ads in states that are pivotal to his reelection campaign. The Bush
Administration has been betting it would not have to make a decision if all
parties involved could be locked into a DC hotel room and forced to
negotiate. But that's not working.
See more at the URL below.
[SOURCE: Washington Post, AUTHOR: Jeffrey Birnbaum and Christopher Stern]
http://www.washingtonpost.com/wp-dyn/articles/A13959-2004Jun3.html
(requires registration)
DEFENDING PHONE COMPETITION
The NYTimes comes out in favor of a Supreme Court appeal in this editorial.
[SOURCE: New York Times, AUTHOR: New York Times Editorial Staff]
http://www.nytimes.com/2004/06/04/opinion/04FRI3.html
(requires registration)

FCC OPEN MEETING AGENDA
FCC Commissioners will hold an open meeting June 10 and six items on agenda
were announced Thursday. The Commission will consider 1) a Notice of
Proposed Rulemaking concerning mandatory electronic filing for
international telecommunications services and other international filings,
2) a Report and Order and Fourth Report and Order concerning spectrum
sharing in the 1.6 and 2.4 GHz bands, 3) a Report and Order and Further
Notice of Proposed Rulemaking concerning the eligibility, licensing and
service rules for the 2500-2690 MHz Band to promote ubiquitous wireless
broadband services nationwide, 4) Notice of Inquiry seeking information and
comment for the Eleventh Annual Report to Congress on the status of
competition in the market for the delivery of video programming, 5) a
Report and Order, Order on Reconsideration, and Further Notice of Proposed
Rulemaking addressing numerous issues concerning the provisions,
regulations, and compensation of telecommunications relay service (TRS) for
persons with hearing and speech disabilities and 6) an Order on
Reconsideration concerning requests from BellSouth and Sure West to
reconsider and/or clarify unbundling obligations relating to multiple
dwelling units and the network modification rules.
Popcorn and peanuts will NOT be available at this meeting; someone left a
big mess in the back row last month.
Additional information concerning this meeting may be obtained from Audrey
Spivack or David Fiske, Office of Media Relations, (202) 418-0500; TTY
1-888-835-5322. Audio/Video coverage of the meeting will be broadcast live
over the Internet from the FCC's Audio/Video Events web page at
www.fcc.gov/realaudio.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-248013A1.doc

MEDIA

BIRDS KEEP FEEDING DISTANT SIGNALS
The Satellite Home Viewer Extension and Reauthorization Act of 2004 was
approved by the House Commerce Committee Thursday. The bill would renew
through 2009 satellite TV carriers' right to import out-of-town network
feeds to subscribers who don't get acceptable signals from their local
affiliates. The bill would also end the controversial two-dish system for
local channels -- broadcasters complain that independent channels are often
relegated to the second dish that many consumers do not bother to have
installed. The FCC also would be ordered to study whether to allow DBS
companies to import digital version of networks feeds, something satellite
companies and some activist groups have been pushing for. The House and
Senate Judiciary Committee are expected to approve the legislation without
major changes next week. That would leave just the Senate Commerce
Committee, chaired by Sen John McCain (R-AZ), to consider the bill, but no
meeting of the committee has been scheduled on the subject.
For text of bill and amendments approved by House Commerce Committee, see
http://energycommerce.house.gov/108/Markups/06032004markup1290.htm
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA423264?display=Breaking+News
(requires subscription)

TV, GAMES BLAMED FOR OBESITY
At a three-day summit on the American obesity crisis, William Dietz,
Director of the Nutrition and Physical Activity Division of the Centers for
Disease Control, said a major cause of childhood obesity is increased media
consumption, primarily TV and video games. He praised programs that limit
children's media consumption and urged the creation of more such programs.
World News Tonight anchor Peter Jennings moderated a panel on marketing to
children. The media and marketers got more and heavier criticism during the
session, both for the enforced sedentariness and for the opportunity that
provides to market fast food, snacks and sweets. But outgoing Federal Trade
Commission Chairman Tim Muris said banning food ads targeted toward
children would be ineffective, not to mention illegal. Chairman Muris added
that "kids get most of their info from adult programs," anyway. Ironically,
he said, government regulations can actually prevent positive health
messages. FDA rules, for example, prevent apple growers from claiming their
product "is better for you than, say, potato chips.... This (kind of thing)
actually drives good health information out of advertising."
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA422942?display=Breaking+News
(requires subscription)
MURIS PANS FOOD-AD BAN
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA423247?display=Breaking+News
(requires subscription)

QUICKLY

POWELL SPEECH TO WIRELESS COMMUNICATIONS ASSOCIATION INTERNATIONAL
FCC Chairman Michael Powell spoke at this WCA 2004 conference. His remarks
focused on the role wireless has and will play in bringing broadband to all
Americans. He concluded: "[T]he broadband future is exciting, innovative
and bright, and we look forward to wireless being part of that future. The
raw material is there, and the recognition of its importance has begun to
develop. Now all that is left is the easy part, of actually making it
happen, and that's what the discussions and debates at this important
conference are about -- bringing the stakeholders together who know how to
make it happen. Hopefully in a few years we will look back quite proudly
of our accomplishments knowing that we put the country and the world on
better, more competitive footing. This is a world that our children will
enjoy for years to come."
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-248003A1.doc

NEW WIRELESS SYSTEMS PUSH 3G ONTO THE DEFENSIVE
Third-generation mobile phone services have finally arrived in Europe after
a mammoth effort that cost the industry at least $123 billion, but new
systems that operate much faster already threaten to consign 3G to history.
Major wireless service providers such as Nextel in the United States and
Britain's Vodafone are trying out Flash-OFDM, a new wireless technology
able to carry data 10 times faster and cheaper than 3G networks. A rival
system is WiMAX, supported by U.S. chip giant Intel , which would offer
fast wireless Internet over distances of up to 28 miles. WiMAX aspires to
be the long-distance version of existing local wireless Internet systems.
[SOURCE: Reuters, AUTHOR:Lucas van Grinsven]
http://www.reuters.com/newsArticle.jhtml;jsessionid=GBNK4G0OYYQRICRBAELC...

WEB PORN ENTICES FAR MORE SURFERS THAN SEARCH
What were we all doing on the Web May 23-29? Research firm Hitwise Inc.
breaks down Web visits that week as: "Adult" at 18.8%, "Search Engines and
Directories" at 13.8%, "Entertainment" at 8.0%, "Business and Finance" at
7.4& and "Shopping and Classifieds" at 7%. Search engine Google accounted
for 2.7% of all Web visits.
[SOURCE: Reuters, AUTHOR: Lisa Baertlein]
http://www.reuters.com/newsArticle.jhtml;jsessionid=NMBXMKIXMFNYCCRBAEOC...

BUSH FTC NOMINEE IS TRIPLE THREAT
Deborah Majoras, a former Bush administration Department of Justice
official, who supervised the controversial settlement with Microsoft, is on
track to become the chair of the Federal Trade Commission. Majoras, who
represents some of the country's largest oil and media companies, would
become the federal government's lead "consumer advocate." But as Senators
Wyden and Boxer and a number of consumer groups have made clear, Majoras at
the FTC would be bad for consumers, competitors, and citizens alike. One
major objection to Majoras is her stance on the role that the FTC should
play in reviewing media mergers. She backed a secret plan developed by the
Bush Administration in 2002 that would have removed the FTC from reviewing
such mergers. Under the proposal, only the Department of Justice would
have had media merger authority. DOJ has been notoriously friendly to the
big media companies that lobby an administration (regardless of which party
is in charge). Only at the FTC have consumers and competitors been given
serious attention (as in the case of AOL and Time Warner, where the FTC
imposed some "open access" and non-discrimination safeguards). As chair of
the FTC, Majoras would be unlikely to seek review of media mergers,
permitting the DOJ to rubberstamp even more consolidation. While at DOJ,
Majoras also led the Bush administration's backroom deal that approved a
much-criticized agreement with Microsoft. The Majoras plan essentially
left the computer giant intact, and cut off the crucial rule of the states
in imposing more significant safeguards. The Jones, Day law firm, where
Majoras works in the government regulation/anti-trust division, represents
some of the biggest media (and media-related) companies in the country,
including: DIRECTV, General Electric Company,The Goldman Sachs Group,
Halliburton Company, Kellogg Brown & Root, Knight Ridder, Lehman Brothers
Holdings, Liberty Media Group, Merrill Lynch & Co., Procter & Gamble, R.R.
Donnelley & Sons, Thomson Multimedia S.A., Time Warner, the Tribune
Company, and the Washington Post Company.
[SOURCE: Center for Digital Democracy]
http://www.democraticmedia.org/news/washingtonwatch/majoras.html

--------------------------------------------------------------
Is it Friday already? Have a great weekend and we'll be back next week with
more on an E-rate oversight hearing, digital TV & kids, an FCC meeting,
maybe some movement on satellite TV legislation... and all those good
community networking people will be meeting in Seattle.
--------------------------------------------------------------

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
--------------------------------------------------------------

Benton's Communications-related Headlines for 6/03/04

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

MEDIA
Spectrum Return Trumps HDTV
Public Television's 'Heat Shield' Withers Under White House Pressure
Clear Channel Settles Airplay Case
Powell Says Media Leaders Should Move Quickly to Ensure Security
Kids' Activists Concerned About DTV
Russian TV Newsman Fired in Media Crackdown

TELECOM
Friction Mounts Over Phone Access Fees
Regulators Tackle Wireless Broadband Issues
McCaw Unveils Wireless Broadband Service
Let Telecom Agreements Bloom

NEW RELEASES
A Failure To Communicate: Reforming Public Policy in the=20
Telecommunications Industry
ICANN Releases Draft Whois Privacy Reports

MEDIA

SPECTRUM RETURN TRUMPS HDTV
Leaders of the House Commerce Committee Wednesday heaped praise on the=20
Federal Communications Commission's plan to accelerate the digital-TV=20
transition and the committee's chairman, Rep Joe Barton (R-TX) said that=20
government spectrum needs trumped ubiquitous high-definition television=20
(HDTV). Television station owners oppose the plan and may start to feel=20
some heat after hearing from legislators. FCC Media Bureau Chief Ken Ferree=
=20
told lawmakers that the FCC must be proactive in defining how the 85% test=
=20
will be reached or the transition won't be completed for decades. "If we=20
wait for 85% of consumers to have digital equipment in their homes, we=20
could be waiting until 2050 or beyond," he said. Perhaps surprisingly, Rep=
=20
Barton was even supportive of the FCC's plan to use a portion of proceeds=20
from auctioning analog channels to pay the $50-$100 for supplying=20
over-the-air-only TV households with a digital-to-analog converter that=20
would keep their old sets functioning, saying that the subsidy would be a=20
bargain if it speeds the creation of new wireless and other telecom=
businesses.
Communications Daily reports that Rep Barton asked, "Why shouldn't the=20
Committee just uphold the 2006 deadline and pay for converter boxes=94 for=
=20
the poor and elderly?
CEA President Gary Shapiro and FCC Media Bureau Chief Kenneth Ferree had=20
replies, but only after *conspicuous moments of silence.* [Imagine that...=
=20
in Washington, DC.] NAB President Edward Fritts said nothing.
Former FCC Commissioner Gloria Tristani encouraged Congress to require the=
=20
FCC "to take advantage of the transition to digital to reestablish=20
meaningful public interest obligations for America=92s television=20
broadcasters." Ms. Tristani, Managing Director of the Office of=20
Communication of the United Church of Christ, stressed that clearly-defined=
=20
public interest guidelines must be in place before the FCC makes decisions=
=20
on the transition from analog to digital broadcasting. "The public deserves=
=20
to know what benefits it will get from the digital largesse that has been=20
gifted to broadcasters," said Tristani. "That benefit should include=20
reasonable minimums of local civic and electoral discourse =85 and for=20
children, commensurate amounts of educational and informational=20
programming, a prohibition of commercial website links embedded in=20
children=92s programming and incorporation of children=92s privacy=
protections."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA422817?display=3DBreaking+News
(requires subscription)
Additional coverage from:
TVWeek http://www.tvweek.com/news/web060204.html#lawmakers
WHY NOT ENFORCE 2006 DTV TRANSITION DEADLINE, BARTON ASKS
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
Office of Communication of the United Church of Christ Press Release
http://www.ucc.org/news/u060204.htm
Testimony of NAB President Eddie Fritts
http://www.nab.org/Newsroom/PressRel/testimonies/FrittsDTV060204.asp
Testimony of NCTA President Robert Sachs
http://www.ncta.com/pdf_files/robert_sachs_testimony_6-02-04.pdf
Testimony of Thomas M. Lenard, Senior Fellow at the Progress & Freedom=20
Foundation
http://www.pff.org/issues&pubs/communications/testimony/060204lenarddtv.pdf

PUBLIC TELEVISION'S 'HEAT SHIELD' WITHERS UNDER WHITE HOUSE PRESSURE
Pingree writes: Public broadcasting has found itself in the crosshairs of a=
=20
partisan firing squad. New and intensifying ideological pressures from the=
=20
Bush Administration have forced the public broadcaster to add new programs=
=20
and alter others, in an attempt to be "more balanced" in the view of the=20
current leadership. At a time when Americans are finding it more and more=20
difficult to get past the clutter and partisanship on commercial TV and=20
radio to find truthful sources of information about their government, this=
=20
ideological pressure may gag one of the few sources of independent,=20
substantive news and commentary that Americans can count on. We cannot let=
=20
partisans drive an ideological stake in the heart of public broadcasting.=20
At a time when media consolidation makes it more and more difficult for=20
Americans to hear diverse points of view and to be exposed to substantive,=
=20
challenging journalism, we must save public broadcasting from these=20
attempts to meddle with its editorial independence.
[SOURCE: MediaChannel, AUTHOR:Chellie Pingree, President of Common Cause]
http://www.mediachannel.org/views/dissector/affalert206.shtml

CLEAR CHANNEL SETTLES AIRPLAY CASE
Nobody in Particular Presents -- a Denver concert promoter -- and the=20
nation's largest owner of radio stations, Clear Channel, have agreed to a=20
settlement of a case brought by the promoter accusing Clear Channel of=20
violating federal and state laws by reducing airplay for recording artists=
=20
who didn't hire the company's concert promotion unit for their=20
performances. Although in April a federal judge ruled that there was=20
sufficient evidence to present the case to a jury, Nobody in Particular=20
Presents faced financial pressure to settle the case and pay some bills.=20
"Clear Channel admitted no wrongdoing in connection with the lawsuit, but=20
we are pleased to get the matter behind us," Clear Channel Executive Vice=20
President Andrew Levin said.
[SOURCE: Los Angeles Times, AUTHOR: Jeff Leeds]
http://www.latimes.com/business/printedition/la-fi-clear3jun03,1,1299584...
ry?coll=3Dla-headlines-pe-business

POWELL SAYS MEDIA LEADERS SHOULD MOVE QUICKLY TO ENSURE SECURITY
FCC Chairman Michael Powell wants the new Media Security & Reliability=20
Council to begin implementing developed the past two years to ensure news=20
and information remain available in a crisis. The Chairman suggested there=
=20
is urgency to this since a number of events this year -- major sporting=20
events, global summits, political party conventions, even the Presidential=
=20
election -- could be viewed as terrorist targets. The Council's chairman,=20
David Barrett of Hearst-Argyle TV, said an infrastructure survey by the=20
first MSRC found only 15% of radio stations, 47% of TV stations and 71% of=
=20
cable operators had a disaster recovery plan. Among those, 7% of radio=20
stations, 17% of TV stations and 58% of cable operators had rehearsed the=20
plan. Mr. Barrett said one goal is for all media to have and rehearse a=20
plan. Thomas Fitzpatrick of Giuliani Partners, who heads the Council's=20
Local Coordination Working Group, intends to develop a plan to strengthen=20
local coordination among media, government and first responders: =93For us=
to=20
be able to reach mass groups of people during a crisis, we need=94 media=20
help, Mr. Fitzpatrick said. =93To accomplish the goal of protecting people,=
=20
there has to be a tremendous public education program in place.=94=20
Newscasters should be doing research now, Chairman Powell suggested, so=20
they can provide context to what is said during press briefing aired on TV=
=20
and radio. Broadcasters and government officials also need to be prepared=20
with experts who can speak to the public on scientific issues, officials=20
said. =93You have to get scientific people that can bring it down to the=20
level that an 8th grader can understand. Otherwise, it=92s not going to=20
work,=94 a local DC official said.
[SOURCE: Communications Daily, AUTHOR: Brigitte Greenberg, Tania=20
Panczyk-Collins]
(Not available online)

KIDS' ACTIVISTS CONCERNED ABOUT DTV
Senator Sam Brownback (R-KS) and FCC Commissioners Kathleen Abernathy,=20
Michael Copps and Jonathan Adelstein will join Children Now, the American=20
Academy of Pediatrics and the American Psychological Association at a=20
half-day conference June 9 about the impact of the digital transition on=20
kids, including "intrusive interactive advertising." Heading the list of=20
topics are what new public interest obligations should be put on=20
broadcasters and the possible "adverse implications of digital TV=20
technology." There will also be a panel, moderated by CBS News' Joie Chen=20
looking at the educational and entertainment upside of digital TV.
For more information see=20
http://www.childrennow.org/media/dtv-convening/dtv-brief.pdf
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA422780?display=3DBreaking+News
(requires subscription)

RUSSIAN TV NEWSMAN FIRED IN MEDIA CRACKDOWN
In what appears to be the latest step by President Vladimir Putin in=20
tightening control over the news media as well as other areas of Russian=20
public life, a prominent TV journalist was fired and the current affairs=20
show he appeared on was canceled after the show aired an interview with the=
=20
widow of a Chechen separatist leader, Zelimkhan Yandarbiyev, who was killed=
=20
in Qatar. The interview was seen in some parts of the country, but abruptly=
=20
haled before it was aired in Moscow. "One of the best television hosts in=20
Russia and one of the best analytic and information programs have not only=
=20
been censored, they have been destroyed, which definitely indicates that we=
=20
live in a police state," the Russian PEN Center of writers, poets and=20
essayists said.
[SOURCE: New York Times, AUTHOR: Seth Mydans]
http://www.nytimes.com/2004/06/03/international/europe/03russ.html
(requires registration)
Additional coverage in:
WSJ=20
http://online.wsj.com/article/0,,SB108619315000926911,00.html?mod=3Dtoda...
s_page_one

TELECOM

FRICTION MOUNTS OVER PHONE ACCESS FEES
Access charges were created in the 1980s, when the government broke up the=
=20
AT&T monopoly. At the time, the idea of access charges was that pricey=20
long-distance calls would continue to generate money to help maintain local=
=20
networks and keep local service affordable for most people. But a lot has=20
changed in twenty years. Long-distance phone calls have become inexpensive=
=20
for many consumers and flat-rate plans don't charge by the minute. Local=20
phone carriers have proliferated, local companies sell long-distance, and=20
consumers can bypass traditional phone companies either by using wireless,=
=20
or by signing up for phone service over the Internet or with a cable=20
company. Consumers pay about one cent per minute in access fees on=20
state-to-state calls. For long-distance phone companies that must connect=20
to the local phone lines of the caller and the person being called, access=
=20
charges make up an enormous portion of expenses. They provide significant=20
revenue to the Bell companies that own most of the local phone lines on=20
which calls begin and end. The nation's largest telecommunications carriers=
=20
collectively spend an estimated $25 billion each year on fees for access to=
=20
each other's networks. Nearly everyone in the industry agrees that the=20
Byzantine maze of fees and the regulations that govern them have become=20
counterproductive and invite cheating. The rules also can't cope=20
intelligently with new technologies, such as Internet calling, critics say.=
=20
"The system is totally dysfunctional," says Scott Cleland, chief executive=
=20
of Precursor Group, a research firm in Washington, D.C. "Everybody can game=
=20
the system and there is every economic incentive to game the fees or cheat=
=20
on them."
[SOURCE: Wall Street Journal, AUTHOR: Shawn Young shawn.young( at )wsj.com and=20
Almar Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB108621672093927375,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

REGULATORS TACKLE WIRELESS BROADBAND ISSUES
At the Wireless Communications Association conference in Washington,=20
policymakers from the FCC and the National Telecommunications and=20
Information Administration spoke about promoting the emerging wireless=20
broadband industry. The regulators are trying to more efficiently manage=20
radio spectrum to encourage private companies to bring broadband to the=20
shrinking number of Americans who do not have it. The FCC has already been=
=20
working to change the allocation of spectrum and is working on a policy=20
that's productive for broadband growth. The agency is looking at=20
reallocating spectrum for broadcast television to wireless and expanding=20
bands in the 5GHz range. The FCC is expected to meet June 10 to discuss=20
reforming the 2.5GHz radio bands to 2.7GHz and making it available for=20
licensed wireless broadband use.
[SOURCE: C-Net|News.com, AUTHOR: Richard Shim]
http://news.com.com/Regulators+tackle+wireless+broadband+issues/2100-103...
5224641.html?tag=3Dnefd.top

MCCAW UNVEILS WIRELESS BROADBAND SERVICE
As expected, U.S. mobile phone industry pioneer Craig McCaw said on=20
Wednesday he was poised to launch a wireless broadband Internet service in=
=20
the United States and several other countries. McCaw's company, Clearwire=20
Inc., will target up to 20 markets by the end of next year where telephone=
=20
and cable companies have been slow to roll out wired broadband, offering=20
data downloads comparable to cable modems and basic telephone service.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DBHDM05RWHCRB2CRBAE...
Y?type=3DtechnologyNews&storyID=3D5326815
Additional coverage in:
WP http://www.washingtonpost.com/wp-dyn/articles/A10974-2004Jun2.html
(requires registration)
LATimes=20
http://www.latimes.com/business/printedition/la-fi-rup3.6jun03,1,2366488...
ry?coll=3Dla-headlines-pe-business
(requires registration)

LET TELECOM AGREEMENTS BLOOM
Randolph J. May of The Progress & Freedom Foundation, Adam Thierer of the=20
Cato Institute and James L. Gatusso of the Heritage Foundation have teamed=
=20
up on an Washington Times op-ed urging state utility commissions to avoid=20
"putting their own regulatory stamp on the freely negotiated agreements,"=20
such as those reached by Qwest with Covad and SBC with Sage Telecom. The=20
conservative policy experts fear "state public utility commissioners are=20
determined to throw roadblocks into the negotiating process, and there have=
=20
been indications the FCC may be meddling as well by, say, requesting=20
negotiation information and pressuring parties to use mediators."=20
Subjecting such agreements to state 'public interest' review would cause=20
the FCC-desired goal to fail "since the incentive to negotiate will be=20
severely diminished."
See the full op-ed at=20
http://www.washingtontimes.com/commentary/20040529-110729-2666r.htm
[SOURCE: Progress and Freedom Foundation Press Release]
http://www.pff.org/news/news/2004/060204negotiate.html
The Progress & Freedom Foundation is a think tank that studies the digital=
=20
revolution and its implications for public policy.

NEW RELEASES

A FAILURE TO COMMUNICATE: REFORMING PUBLIC POLICY IN THE TELECOMMUNICATIONS=
=20
INDUSTRY
The Telecommunications Act of 1996 has largely failed in its three-part=20
mission to decrease telephone service prices, increase service quality, and=
=20
create high-tech networks. The author explores how the Act fell short of=20
its goals and identifies some initial steps toward revitalizing the=20
telecommunications sector.
[SOURCE: Economic Policy Institute, AUTHOR: Stephen Pociask]
http://www.epinet.org/content.cfm/books_failure

ICANN RELEASES DRAFT WHOIS PRIVACY REPORTS
Three task forces at ICANN, the domain name coordination group, have=20
released for public comment reports on policy issues surrounding the Whois=
=20
database of domain name registration information. The reports examine the=20
mining of Whois domain name holder data by advertisers, privacy protections=
=20
for Whois data, and the accuracy of Whois information. CDT has called for a=
=20
balanced Whois policy that does more to protect the private information of=
=20
individuals who register domain names - an approach endorsed by one of the=
=20
task force reports.
Generic Names Supporting Organization (with links to reports):=20
http://gnso.icann.org/
More information on Domain Name Management Policy: http://www.cdt.org/dns/
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)
--------------------------------------------------------------
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.
--------------------------------------------------------------

Benton's Communications-related Headlines for 6/02/04

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

MEDIA
Big Media More Willing To Cover Up Than Change
CEA To Back Ferree TV
Court Allows Public Knowledge Case Against Broadcast Flag To Move Forward
New Star on Chinese TV: Product Placements

TELECOM
Verizon Needs To Duke It Out In the Market
GAO Report on Spectrum Management

QUICKLY
Karmazin Ends a Turbulent Run at Viacom
Nielsen Offers a Compromise
McCaw Is Expected to Launch Wireless Broadband Service

MEDIA

BIG MEDIA MORE WILLING TO COVER UP THAN CHANGE
Today marks the one-year anniversary of the FCC's new media ownership
rules. Nearly three million Americans wrote letters to rule makers in
Washington protesting media consolidation, but their was little coverage of
the issue at the time nor are media outlets likely to be marking the
anniversary today. As far as Big Media is concerned, Schechter writes, the
less said about media ownership the better. In the year since the FCC's
June 2, 2003 decision, the media ownership issue is now languishing in the
federal courts in a little-covered case brought against the FCC by
low-power radio activists of the Prometheus Radio Project. The U.S. Court
of Appeals in Philadelphia is weighing arguments from the media companies
that largely supported the sweeping ownership rules changes passed in June
2003, and consumer advocacy groups that successfully sued to stop the rules
from being enacted. Media reformers are watching and waiting for a ruling -
expected sometime this summer -- with the hope that the right (or wrong)
decision will recharge their campaign against big media owners. In the
interim, Congress negotiated a compromise that will allow broadcasters to
own up 39% of media outlets in a local market, not the 45% they wanted, nor
the 35% cap that was previously in place. More attention must be paid to
the small aggregation of groups working behind the scenes and under the big
media radar to keep media reform on the political map. This coalition
includes groups such as Free Press, Common Cause, MediaChannel.org, the
Center for Digital Democracy, the Media Access Project, the Alliance for
Better Campaigns, the New America Foundation, and the Center for Creative
Voices in Media. These groups joined in April to combine policy work in
Washington with grassroots activism and outreach across the country to give
in 2004 shape to a movement that was sparked by citizens one year ago, today.
[SOURCE: MediaChannel, AUTHOR: Danny Schechter]
http://www.mediachannel.org/views/dissector/affalert205.shtml

CEA TO BACK FERREE TV
At a House Subcommittee on Telecommunications and the Internet hearing
scheduled for 10am this morning, the Consumer Electronics Association (CEA)
is expected to support the plan being developed by the FCC Media Bureau
Chief Ken Ferree to accelerate the transition to digital-only TV
broadcasting in the US. The proposal would count all cable subscribers as
digitally served by local broadcasters, even if they don't have a digital
set and their only access to local station's digital broadcasts are cable
signals that have been "downconverted" to analog. The CEA will back the
plan, which broadcasters object to, if the FCC sets a deadline for making
cable stop downconverting and begin transmitting broadcast high-definition
pictures and other digital features. Also, cable would have to transmit all
V-Chip, Spanish language and other program-related side information that
accompanies the primary TV picture and audio.
The hearing will be Webcasted... point your browser to
http://energycommerce.house.gov/108/Hearings/06022004hearing1289/hearing...
Witness to include: Mr. Ferree, National Association of Broadcasters
President Edward Fritts, National Cable and Telecommunications Association
President Robert Sachs, Richard DalBello of the Satellite Broadcasting and
Communications Association (SBCA), CEA President Gary Shapiro, the United
Church of Christ's Gloria Tristani, and Thomas Lenard of the Progress &
Freedom Foundation.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA422624?display=Breaking+News
(requires subscription)

COURT ALLOWS PUBLIC KNOWLEDGE CASE AGAINST BROADCAST FLAG TO MOVE FORWARD
Public Knowledge and its allies fighting the FCC's broadcast flag won a key
procedural victory when the U.S. Appeals Court for the D.C. Circuit turned
down the FCC's request to prevent the case from moving forward pending
agency action. The lawsuit challenging the content control broadcast flag,
filed Jan. 30, argues that the FCC does not have jurisdiction to impose
design requirements on consumer electronics devices, and even if it did
have the authority, there is no problem with "indiscriminate distribution"
of digital TV signals. In response, the FCC asked the Court March 3 to hold
off any action on the case, saying the administrative process for
completing consideration of the broadcast flag was not yet complete because
petitions for reconsideration were still being considered at the agency.
Public Knowledge and others responded on March 15 that the Court should
turn down the FCC's request because the reconsideration phase of the FCC
proceeding is based on the assumption that the FCC has the power under the
Communications Act to proceed with the broadcast flag. The lawsuit brought
by the coalition of consumer groups and libraries disagreed with that
premise when it challenged the FCC's fundamental authority. "This decision
is important because requests like the one the FCC filed are rarely turned
down," Public Knowledge President Gigi Sohn said. "Had the court decision
gone the other way, the broadcast flag would have become the television
standard regardless of the ultimate outcome of the case."
Public Knowledge is a public-interest advocacy and education organization
that seeks to promote a balanced approach to intellectual property law and
technology policy that reflects the "cultural bargain" intended by the
framers of the constitution.
[SOURCE: Public Knowledge Press Release]
(http://www.publicknowledge.org/)

NEW STAR ON CHINESE TV: PRODUCT PLACEMENTS
Although the government owns the airwaves in China, the biggest names in
television in the country are American advertisers who produce and brand
programming that often stars the products being sold. Much of this
programming is made available to the TV stations for free. Some of the
smaller players among China's 1,150 state-owned broadcasters are being
squeezed by their provincial-government owners to turn a profit. But they
lack the ratings to raise their ad rates. That's why free programming looks
attractive. Marketers and the media-buying companies that represent them
buy or produce shows containing product placements or ads, and swap it with
broadcasters in exchange for a block of program time and the ad space
around it. Sometimes, the stations keep a portion of the ad slots during
the shows, or share in the profit from the programs. And they hope that the
shows boost the stations' popularity.
[SOURCE: Wall Street Journal, AUTHOR: Geoffrey A. Fowler
geoffrey.fowler( at )wsj.com]
http://online.wsj.com/article/0,,SB108613261058126385,00.html?mod=todays...
(requires subscription)

TELECOM

VERIZON NEEDS TO DUKE IT OUT IN THE MARKET
Pearlstein's column opens: "Everyone knows the Washington game involves
negotiating hard, stretching the truth a bit, buying access and making
selective use of litigation. But one company, Verizon Communications, has
decided to take this all to a disturbing extreme, engaging in a
scorched-earth strategy that runs roughshod over the unwritten rules of the
game." The article then points to Verizon's history of opening its network
to competitors, the company's performance during this past weekend's
negotiations at the FCC, how it walked away from talks aimed at breaking an
impasse over the fees phone companies pay each other for completing each
other's calls, its campaign against MCI/Worldcom, and how it apparently
scuttled the Nextel "consensus" plan. Pearlstein concludes: "Rather than
playing the role of the old regulated monopoly, scheming endlessly to
eliminate rivals and tilt the rules in its favor, maybe Verizon could
concentrate on trying to compete the way companies in most other industries
do -- by offering better products and services at more competitive prices."
[SOURCE: Washington Post, AUTHOR: Steven Pearlstein pearlsteins( at )washpost.com]
http://www.washingtonpost.com/wp-dyn/articles/A8273-2004Jun1.html
(requires registration)

GAO REPORT ON SPECTRUM MANAGEMENT
Recent advances in technologies that rely on the use of the radio-frequency
spectrum have made cellular telephones, wireless computer networks, global
positioning system receivers, and other spectrum-dependent technologies a
part of everyday life. Further, these technologies have become critical to
a variety of government missions, including homeland security and strategic
warfare. But these new uses have also increased demand for spectrum raising
debates about how best to use this increasingly scarce resource. The GAO
was asked to investigate the investments in spectrum efficient technologies
by government agencies as well look at how the country's spectrum
management system affect the development and adoption of these
technologies. The GAO recommends that the NTIA and the FCC jointly: 1)
assess and determine the feasibility of redefining the spectrum allocation
system to build in greater flexibility where appropriate to facilitate
emerging technologies; 2) develop and implement plans to gain a more
thorough and on-going understanding of the current spectrum environment;
and 3) strengthen efforts to develop jointly accepted models and
methodologies to assess the impact of new technologies on overall spectrum
use and increase opportunities to permit testing of those technologies. In
addition the GAO recommends that the NTIA: 4) establish guidance for
agencies to determine and report their future spectrum requirements; 5)
strengthen NTIA's spectrum certification process to more directly address
spectrum efficiency; and 6) determine approaches, where appropriate, for
providing incentives to agencies to use spectrum more efficiently and then
pilot and measure the effectiveness of those approaches.
Prepare now for your next trip to the beach... visit the URL and print a
copy of this page-turner for your very own self.
Spectrum Management: Better Knowledge Needed to Take Advantage of
Technologies That May Improve Spectrum Efficiency
[SOURCE: General Accounting Office]
http://www.gao.gov/cgi-bin/getrpt?GAO-04-666

QUICKLY

KARMAZIN ENDS A TURBULENT RUN AT VIACOM
Mel Karmazin stepped down as president of Viacom, providing a coda to the
four-year, tension-filled partnership between him and Sumner Redstone.
[SOURCE: New York Times]
http://www.nytimes.com/2004/06/02/business/media/02viacom.html
What Does it Mean for Howard Stern?
http://www.nytimes.com/2004/06/02/business/media/02radio.html
Mel Karmazin was the main defender of Howard Stern... will his departure
quicken Mr. Stern's move to satelitte radio where he will be free of FCC
indecency enforcement?
(requires registration)
WSJ:
http://online.wsj.com/article/0,,SB108609175830525666,00.html?mod=todays...
http://online.wsj.com/article/0,,SB108613538882026449,00.html?mod=todays...
http://online.wsj.com/article/0,,SB108614046712326577,00.html?mod=todays...
WP: http://www.washingtonpost.com/wp-dyn/articles/A8039-2004Jun1.html
LATimes:
http://www.latimes.com/news/printedition/front/la-fi-karmazin2jun02,1,21...
http://www.latimes.com/business/printedition/la-fi-stern2jun02,1,695992....
Also:
MEDIA FIRMS WILL NEED MOGULS WHO CAN SUCCEED
[SOURCE: Los Angeles Times, AUTHOR: Meg James & Richard Verrier]
http://www.latimes.com/business/printedition/la-fi-replace2jun02,1,72795...

NIELSEN OFFERS A COMPROMISE
Nielsen announced that it would continue to operate the current system of
measuring ratings in New York for the next three months as it proceeds to
adopt electronic measurement devices known as local people meters, which
have been used nationally to measure ratings since 1987. During the three
months through Sept. 3, Nielsen said, stations and agencies may use the New
York ratings data - generated by either the local people meters or by the
current system, which combines people meters with paper diaries that
viewers fill out by hand. The data helps to set advertising rates and make
programming decisions.
[SOURCE: New York Times, AUTHOR: Stuart Elliott]
http://www.nytimes.com/2004/06/02/business/media/02adco.html
(requires registration)

MCCAW IS EXPECTED TO LAUNCH WIRELESS BROADBAND SERVICE
Speaking at the Wireless Communications Association International
conference today, wireless entrepreneur Craig McCaw is expected to announce
today that he is launching a national wireless broadband service to compete
with the high-speed Internet access offered by cable operators and
telephone companies.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com]
http://online.wsj.com/article/0,,SB108613344367926390,00.html?mod=todays...
(requires subscription)
Also coverage in Reuters:
http://www.reuters.com/newsArticle.jhtml;jsessionid=KWMR0DGX2B410CRBAEOC...
--------------------------------------------------------------

Benton's Communications-related Headlines for 6/01/04

The DTV transition, FTC and Commerce Department nominations, Satellite Home=
=20
Viewer Extension and Reauthorization Act... Congress is back and you're=20
going to be in trouble. Hey la, hey la, our Congress is back.
For these and other upcoming media policy events (we promise to NOT sing=20
about them), see http://www.benton.org/calendar.htm

TELECOM
Could Telephone Rates Become a Campaign Issue?
Phony Federalists
Qwest and MCI Set Lease Rates For Local Service
Bells Loosen Their Grip

MEDIA
XM Asks Subscribers to help Petition the FCC, Congress
Political Payoffs
Congress and FCC Take Aim
Hill Pushes Narrated TV For Blind
FCC Begins EEO Audits
Cable Gears up for Digital-ready TV Sets

QUICKLY
Public Voice WSIS Sourcebook
Truckers Warm to Wireless Hot Spots

TELECOM

COULD TELEPHONE RATES BECOME A CAMPAIGN ISSUE?
Gas, milk and... local telephone service? Washington insiders are wondering=
=20
if and when someone will pull the trigger linking the Bush Administration=20
to rising prices. Even though many people can't even understand their phone=
=20
bills, a decision by the Bush Administration to not seek a Supreme Court=20
review of an appeals court ruling on phone network leasing rates could,=20
well, decide the election. In the eyes of Blair Levin, an analyst at=20
investment firm Legg Mason, the issue has the potential to sway the=20
presidential race in four closely contested states: Ohio, Florida,=20
Pennsylvania and Michigan. Thanks to aggressive state regulation, Ohio and=
=20
Michigan consumers have seen telecom competition flourish and phone bills=20
shrink. Therefore, Levin said, any rate increases might influence their=20
vote for president. Similarly, the recent public outcry in Florida over a=20
proposed rate hike might inflame voters again. With a close election=20
predicted, a swing of 10,000 to 20,000 voters in any one of the four states=
=20
might be enough to determine the election, Mr. Levin said. "It's not clear=
=20
the Bush administration controls gas prices," he said, "but one could argue=
=20
that they have more control over phone rates." A trade group representing=20
Bell competitors called CompTel/ASCENT is "seriously thinking" about an ad=
=20
blitz on phone rates as is AARP, a nonprofit advocacy organization for=20
people 50 and older.
[SOURCE: Los Angeles Times, AUTHOR:Jube Shiver Jr]
http://www.latimes.com/business/printedition/la-fi-presphone1jun01,1,665...
.story?coll=3Dla-headlines-pe-business

PHONY FEDERALISTS
This op-ed strongly supports FCC Chairman Michael Powell's stand on=20
(de)regulating the rates telephone companies charge competitors to lease=20
parts of their networks. Over Chairman Powell's objections, the FCC adopted=
=20
rules allowing states to set those rates, but a federal court found the=20
rules to be "lawless," the authors write. They ask that the FCC and=20
Solicitor General Theodore Olson not seek Supreme Court review of a March 2=
=20
decision by the U.S. Court of Appeals in Washington, D.C.: "The appeals=20
court decision should stand. Deregulation works, recent history proves it,=
=20
and a proper understanding of the principle known as federalism supports=20
it." They conclude: "This is more than a communications industry issue. It=
=20
is part of a much larger argument over the proper role of states in the=20
regulatory process, and how to limit government interference in competitive=
=20
markets. Federalism is a treasured principle that is crucial for=20
maintaining balance between competing governmental powers, and for=20
fostering a dynamic economic environment. Properly applied, it can open the=
=20
American economy to a new birth of growth -- growth in new learning tools=20
for schools and universities; growth in access to the very best medical=20
consultation for people in remote areas as well as in big cities; growth in=
=20
new technologies as we harness the greater bandwidth to the greater dreams=
=20
of inventors and entrepreneurs; growth that benefits every worker and=20
family in our nation. The real federalism we speak of increases freedom --=
=20
and with it the fruits of freedom."
[SOURCE: Wall Street Journal, AUTHORS: John Engler, the former governor of=
=20
Michigan (1991-2003), C. Boyden Gray, former counselor to the President's=20
Task Force on Regulatory Relief (1981-1989), and Kenneth Starr, the=20
incoming dean of the Pepperdine Law School.]
http://online.wsj.com/article/0,,SB108605009909825376,00.html?mod=3Dtoda...
s_opinion
(requires subscription)
Mr. Starr will be speaking tomorrow on "The Supreme Court and the Future of=
=20
the Telecom Act of 1996." See=20
http://www.pff.org/news/news/2004/052704starr.html for details.

QWEST AND MCI SET LEASE RATES FOR LOCAL SERVICE
Instead of heading to the family BBQ, representatives of the nation's=20
largest phone companies were requested by FCC officials to spend the=20
holiday weekend at the Commission's Washington, DC headquarters negotiating=
=20
network lease rates. The FCC was hoping for a negotiated solution to the=20
leasing dispute -- instead of sending the matter back to the courts. The=20
results were mixed. AT&T called the talks a failure. But Qwest and MCI=20
signed a pact outlining a series of wholesale rates Qwest will charge MCI=20
to lease its network to offer local phone service to consumers and=20
businesses, overriding rates set by regulators. The deal calls for existing=
=20
prices through the end of this year, followed by a transition period=20
through January 2007. The two companies say there will be price increases=20
at scheduled points throughout the transition period. During the transition=
=20
period, MCI may develop more of its own means to deliver local phone=20
service by building its own telecom hubs.
[SOURCE: Wall Street Journal, AUTHOR: Almar Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB108604238029125198,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
WP: http://www.washingtonpost.com/wp-dyn/articles/A5137-2004May31.html
LATimes:=20
http://www.latimes.com/business/printedition/la-fi-phones1jun01,1,779114...
ory?coll=3Dla-headlines-pe-business

BELLS LOOSEN THEIR GRIP
Last week's admission that Verizon is selling "naked DSL" to some customers=
=20
is the jumping off point for this discussion on the business strategies of=
=20
the four Baby Bell companies. Allowing customers to buy high-speed Internet=
=20
access without requiring them to also purchase local phone service is a big=
=20
move for the Bells who are trying to match the bundle of services offered=20
by cable companies. The Bells are servicing fewer and fewer local phone=20
lines and they are trying to find new models of profitability as that trend=
=20
is expected to consider: people are choosing cell phone service over=20
landline service for second telephone lines, 30% of consumers are expected=
=20
to make the jump to cell phone-only service in the next four years AND=20
there's this whole VoIP thing to worry about, too. What's a local monopoly=
=20
to do?
[SOURCE: C-Net|News.com, AUTHOR: Ben Charny]
http://news.com.com/Bells+loosen+their+grip/2100-1034_3-5222816.html?tag...
efd.top

MEDIA

XM ASKS SUBSCRIBERS TO HELP PETITION THE FCC, CONGRESS
Comments are due Friday on a National Association of Broadcasters petition=
=20
asking the FCC to clarify that satellite radio can be only national and not=
=20
offer local weather and traffic to subscribers. In addition, legislation=20
also has been introduced in the House to prohibit local broadcasting by=20
satellite. To ward off these efforts by the National Association of=20
Broadcasters, XM radio is asking subscribers to contact the FCC and their=20
Members of Congress in support of the company. "NAB=92s preference is that=
we=20
not have dedicated channels for different metro areas. What that amounts to=
=20
is regulating speech and content and that=92s a First Amendment issue and=
not for
NAB to decide," a XM spokesperson said.
[SOURCE: Communications Daily, AUTHOR: Jeanene Timberlake]
(Not available online)

POLITICAL PAYOFFS
Early results of the 2004 election have identified clear winners: TV=20
stations. Network affiliates in the 21 battleground states could see=20
double-digit increases in political revenue, compared with this point in=20
2000. Industry analysts predicted last fall that stations' take from this=20
year's election would jump sharply=9760% from 2000=97to as high as $1.6=20
billion. But pundits seem surprised that so much has been spent so quickly.=
=20
"The money is much greater than before and being spent much earlier," says=
=20
Tim McAuliff, CEO of Petry Media, which links TV-station groups with the=20
campaigns and other buyers of ad time. Cable is likely to pick up steam as=
=20
the campaigns become more desperate to reach that crucial 4% of undecided=20
voters who will determine the election's outcome. Broadcasters will=20
continue to reap a windfall as candidates sustain a full-court press. In=20
addition, the controversial 527 nonprofit organizations have promised to=20
spend hundreds of millions. They have barely made a dent in the money=20
pledged to them. Says Sanford Bernstein & Co. analyst Tom Wolzien, "The=20
cost per thousand to reach the three voters who decide this election is=20
astronomical."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA421960?display=3DWashington
(requires subscription)
USAToday is reporting on George Soros' efforts to defeat George Bush. His=20
money will buy a lot of political advertising.
[SOURCE: USAToday, AUTHOR: Rick Hampson]
http://www.usatoday.com/usatonline/20040601/6248227s.htm
http://www.usatoday.com/usatonline/20040601/6248221s.htm

CONGRESS AND FCC TAKE AIM
Although indecent broadcast content has grabbed most of the headlines this=
=20
year -- at least after the Super Bowl -- violence on TV may be the next=20
election year issue. "It is not harmless entertainment," complains Sen Joe=
=20
Lieberman, a longtime critic of TV violence. To finally put a muzzle on it,=
=20
the Connecticut Democrat is pushing legislation that would require the=20
National Institutes of Health to study the impact of TV violence and other=
=20
types of media exposure on children's development. His purpose is clear:=20
Data showing any link between exposure to violent shows and aggressive=20
behavior in children will be fuel to drive anti-violence restrictions=20
through. Some legislators would like to see the return of a family-friendly=
=20
prime time viewing period that would lack violent or indecent content. The=
=20
FCC will begin an examination into TV-violence that will focus on whether=20
the government can limit violent programs without violating free-speech=20
rights. If those constitutional issues can be resolved, then the FCC must=20
decide how tough the limits should be. The biggest quandary over regulating=
=20
TV violence is actually defining what "excessive" violence is. Privately,=20
Washington lobbyists are playing down chances of any crackdown passing=20
Congress or the FCC soon. In public, however, they're scrambling to show=20
that the issue is taken seriously.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA422019?display=3DSpecial+Report
(requires subscription)

HILL PUSHES NARRATED TV FOR BLIND
Rep Ed Markey (MA), the House Telecommunications Subcommittee=92s top=20
Democrat, along with John McCain (AZ) and Ernest Hollings (SC) -- the=20
chairman and ranking Democrat, respectively, of the Senate Commerce=20
Committee -- have introduced legislation giving the FCC power to reinstate=
=20
its rules requiring narration of some prime time and children=92s=
programming=20
on broadcast and cable TV. The rules were adopted in 2000, but broadcasters=
=20
sued and a court ruled that the FCC was authorized by Congress only to=20
study whether a narration mandate would benefit the blind, not to actually=
=20
impose one.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA421799?display=3DBreaking+News
(requires subscription)

FCC BEGINS EEO AUDITS
On May 28, 2004, the Federal Communications Commission (FCC) began mailing=
=20
the first of its Equal Employment Opportunity (EEO) audit letters to=20
randomly selected broadcast stations and multi-channel video program=20
distributors (MVPDs). In accordance with the Commission's EEO rules, the=20
FCC will audit the EEO programs of randomly selected broadcast licensees=20
and MVPDs. Each year, approximately 5% of all licensees and MVPDs will be=
=20
selected. Sample copies of the audit letters can be viewed by accessing the=
=20
Media Bureau's EEO page on the FCC website at=20
http://www.fcc.gov/mb/policy/eeo. A list of the stations and MVPDs to=20
which this group of letters were sent is also available on the=20
website. Audit letters will be mailed to additional broadcast licensees=20
and MVPDs at a later date, although the language in the letters will not=20
necessarily remain the same.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1536A1.doc

CABLE GEARS UP FOR DIGITAL-READY TV SETS
On July 1, the FCC will begin to require that cable TV systems be able to=20
handle a new generation of digital cable-ready TVs and home theater units.=
=20
The new gear can tune in digital and high-definition TV signals without a=20
cable system's proprietary set-top box. Beyond cable-ready TVs, the change=
=20
will make possible a range of new product choices to meet consumers' needs.=
=20
For example, if the box your operator offers lacks a connection for your=20
digital-video recorder, you can buy a different box that does -- or buy a=20
new DVR with a card slot and its own tuner. CableCard's "convenience is a=20
powerful tool to sell digital cable" packages that add about $10 to the=20
monthly bill, says In-Stat/MDR analyst Gerry Kaufhold. It will help cable=20
compete with satellite providers: "Nobody's coming out with a=20
satellite-ready TV."
[SOURCE: USAToday, AUTHOR:David Lieberman]
http://www.usatoday.com/usatonline/20040601/6248466s.htm
More on the DTV transition will be discussed at a House hearing this week.=
=20
See=20
http://energycommerce.house.gov/108/Hearings/06022004hearing1289/hearing...

QUICKLY

PUBLIC VOICE WSIS SOURCEBOOK
EPIC has published The Public Voice WSIS Sourcebook, a resource to promote=
=20
a dialogue on the issues, the outcomes, and the process of the World Summit=
=20
on the Information Society (WSIS). This reference guide provides the=20
official United Nations documents, regional and issue-oriented=20
perspectives, as well as recommendations and proposals for future action.=20
There is also a useful list of resources and contacts for individuals and=20
organizations that wish to become more involved in the WSIS process. For=20
more information about this and other EPIC publications, see the EPIC=20
Bookstore. The Public Voice is a project started by EPIC to promote the=20
involvement of the public and non-profit community in policy decisions=20
concerning the Internet.
[SOURCE: Electronic Privacy Information Center]
http://www.epic.org/bookstore/pvsourcebook/

TRUCKERS WARM TO WIRELESS HOT SPOTS
Citizens' band radios, cell phones, GPS... and now Wi-Fi Internet access.=20
Truckers always appear to be on the cutting edge of wireless communication.=
=20
Find out how these mobile workers are tapping into the Internet at the URL=
=20
below.
[SOURCE: Washington Post, AUTHOR: Kimberly Edds]
http://www.washingtonpost.com/wp-dyn/articles/A4786-2004May31.html
(requires registration)
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