July 2004

The FCC is speaking French today! See
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-248765A1.doc for
details of the a la carte discussion. For upcoming media policy events, see
http://www.benton.org/calendar.htm

BROADCASTING/TELEVISION
Cable Networks Taking Flak for Show Schedules
Violent Television Programming And Its Impact on Children
CPB Board Adopts Fiscal Year 2005 Operating Budget
NBC, DirecTV Reach Deal on Fees, High-Definition Shows

INTERNET/BROADBAND
The Internet Changes Rules
White House Considers Role in Wine Case
Bush Advisers Tout Broadband Success
$9 Million in Broadband Grant Funds
Cable, DSL Face Threats

FCC Open Meeting Agenda

BROADCASTING/TELEVISION

CABLE NETWORKS TAKING FLAK FOR SHOW SCHEDULES
One of the subplots of this convention has been the approach the broadcast
and cable TV networks have taken toward their evening coverage of the
convention. It was well known before the convention started that the three
old-line broadcast networks -- ABC, CBS and NBC -- would air just three
hours of the proceedings during prime evening hours this whole week, none
of it Tuesday. The cable news networks promised they would fill the void in
coverage. And indeed, the three most-watched cable news networks -- CNN,
Fox News and MSNBC -- are devoting a lot of airtime to reports from inside
and outside the FleetCenter. But it's what they're putting on the air in
the evenings that has some critics talking. Some critics say there's been
too much talk and commentary from pundits and celebrities, too much
promotion of the cable networks' stars and too little coverage of the
speeches, delegates and issues before the nation. The only network with
"true convention coverage" is PBS, says Tom Rosenstiel, director of
Columbia University's Project for Excellence in Journalism. PBS has three
hours of the convention each night and ratings have jumped significantly
compared with the 2000 conventions. Tuesday night, PBS says, an estimated
7.7 million viewers tuned in to some or all of its coverage. Its rating was
up 32% from the second night of the 2000 Democratic convention. PBS says
its number of viewers surpassed those watching CNN, Fox News and MSNBC
combined. Those cable networks together drew 6 million viewers, according
to Nielsen Media Research.
[SOURCE: USAToday, AUTHOR:Mark Memmott]
http://www.usatoday.com/usatonline/20040729/6407341s.htm

VIOLENT TELEVISION PROGRAMMING AND ITS IMPACT ON CHILDREN
The FCC is seeking comment on issues relating to the presentation of
violent programming on television and its impact on children. Violent
television programming content has been a matter of private and
governmental concern and discussion from at least the early
1950s. Congress' response, in 1996, was adoption of Section 551 of the
Telecommunication Act 1996, which resulted in the Commission's
implementation of the companion elements of the voluntary television rating
system and associated "V-chip" technology in 1998. More recently, the
Commission has received continuing expressions of Congressional concern
with respect to violent programming. On March 5, 2004, thirty-nine members
of the U.S. House of Representatives, Committee on Energy and Commerce,
requested the Commission to begin a "Notice of Inquiry on the issue of
excessively violent broadcast television programming and its impact on
children." This proceeding is designed to be responsive to these concerns
and to update the record on issues related to programmatic violence.
The FCC is seeking specific information concerning how much televised
violence there is on broadcast and non-broadcast television, whether the
amount of violent programming is increasing or decreasing and the effects
on children. The Commission also asks, "From a public policy standpoint, is
there a need to define all violence, or simply gratuitous or excessive
violence?" Although the V-chip and rating system is already in place, the
Commission asks, "To what extent is programming in fact rated, using both
the age-based ratings, and the additional content labels for violence? Are
the ratings consistent and accurate?" The Commission also asks if a "safe
harbor," which restricts violent programming to times when children are not
part of the audience would be a more effective solution. There are
Constitutional matters to be addressed, too, of course and the Commission
also asks for comment on the pro-social effects of television programming.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-175A1.doc

CPB BOARD ADOPTS FISCAL YEAR 2005 OPERATING BUDGET
On Tuesday, the Corporation for Public Broadcasting Board of Directors
unanimously adopted a fiscal year 2005 operating budget of $393 million,
which will strengthen the services that more than 1,000 local public
stations deliver to their communities. The FY05 budget (189K PDF), which
goes into effect on October 1, 2004, focuses on the priorities set out in
CPB's goals and objectives: local services and content; national content
and services; bolstering support for public broadcasting, and long term
system-wide planning. Following the statutorily prescribed formula, CPB
will administer the FY05 funds as follows: Support for Public Television
($263 million) Includes $195 million in Television Community Service Grants
(which go directly to local stations) and $67.5 million for television
programming (support for national programming, including projects for
children and diverse audiences.) Support for Public Radio ($88 million)
Includes: $61 million in Radio Community Service Grants (which go directly
to stations), and $27 million for the Radio Program Fund (direct and
competitively allocated grants for programming and production).
[SOURCE: Corporation for Public Broadcasting Press Release]
(http://www.heritage.org/Research/InternetandTechnology/index.cfm)

NBC, DIRECTV REACH DEAL ON FEES, HIGH-DEFINITION SHOWS
Analysts were waiting to see what would happen in the first major
negotiation between the two entertainment giants since NBC acquired
Universal and Rupert Murdoch took control of DirecTV. Seems like the two
giants can play nicely and agree to make lots of money. NBC Universal and
DirecTV avoided a bruising fight about rising programming costs (for
channels like USA Network, Sci-Fi Channel, Bravo and Telemundo) with a
broad deal that provides more high-definition programming to the No. 1
satellite company. The price increases could set an important precedent as
other cable and satellite providers look at the channels, which cut their
last distribution deals about two years ago. Some cable executives said
they were already overpriced. DirecTV will distribute NBC's HD programming
from the Olympics in Athens, Bravo HD+ and HD broadcasts from NBC-owned
stations.
[SOURCE: USAToday, AUTHOR:David Lieberman]
http://www.usatoday.com/usatonline/20040729/6407189s.htm

INTERNET/BROADBAND

THE INTERNET CHANGES RULES
In this campaign, the Internet has done what decades of efforts at
campaign-finance reform largely failed to do: Diminish the exclusive power
of rich people to finance candidates. Most donations over the Internet are
small, though donors also often are willing to contribute again and again.
The Internet has helped minimize the advantage Republicans have held in
fundraising since the FEC was established in 1975 to track contributions.
Sen Kerry has raised $186 million, more than a third of it on the Internet.
"That's the fundamental difference from what we would have expected," Kerry
pollster Mark Mellman says. "If it had not been for the grass-roots donors,
this campaign would not have been as competitive as it's been."
[SOURCE: USAToday]
http://www.usatoday.com/usatonline/20040729/6407100s.htm

WHITE HOUSE CONSIDERS ROLE IN WINE CASE
The Bush administration has until the end of today to decide whether to
take a stand in a Supreme Court case. The administration is not a party to
the case, in which wine producers are trying to overturn state laws
prohibiting Internet wine shipments. But the White House finds itself
caught between two parts of Bush's political base: business interests who
favor freer commerce and religious conservatives concerned about minors
buying wine.
[SOURCE: Washington Post, AUTHOR: Dana Milbank]
http://www.washingtonpost.com/wp-dyn/articles/A21966-2004Jul28.html
(requires registration)

BUSH ADVISORS TOUT BROADBAND SUCCESS
At a press briefing Wednesday, three top officials in President Bush's
Administration touted the successful rollout of broadband Internet service.
"The take-up rate for broadband is faster than anything we've ever seen,"
said Phil Bond, undersecretary of commerce for technology. He cited
statistics saying that broadband was in more households than color TV or
VCRs at similar times after their introduction. Undersecretary Bond said
the administration's goal was to "make sure that government isn't in the
way or impeding" technological development. A White House fact sheet says
that R&D spending requested for broadband will top $2 billion in 2005, up
14 percent from 2001. Richard Russell, associate director of the White
House's Office of Science and Technology Policy (OSTP), said the president
was eager to sign legislation renewing a moratorium on state taxes singling
out Internet access. The House of Representatives approved a permanent ban,
while the Senate decided on a four-year extension. OSTP Director John
Marburger, said the White House had not taken a position on any of the
bills in Congress related to regulating voice over Internet Protocol services
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Bush+advisers+tout+broadband+success/2100-1034_3-528...

$9 MILLION IN BROADBAND GRANT FUNDS
Agriculture Secretary Ann Veneman Wednesday announced that $9 million in
grant funds were available for connecting essential community facilities in
rural towns and communities where no broadband service exists. The
Broadband Community Connect program is in its third year, having already
invested $21.3 million in grant funds to connect essential services of
police and fire protection, local government, hospitals, libraries and
schools to broadband service. To date, this program has connected 74
communities to high-speed telecommunications. In return, the communities
will make at least 10 computers available to the public with set hours and
instruction available for use on the Internet. The notice of funding
availability appears in the July 28 Federal Register. All applications must
be received by September 13. Instructions are available at the URL below.
[SOURCE: United States Department of Agriculture]
http://www.usda.gov/Newsroom/0311.04.html

CABLE, DSL FACE THREATS
A look at next-generation broadband technologies such as fiber, satellites,
wireless networks and electrical lines. As tempting as the potential may
be, these strategies face monumental obstacles. For one, they're competing
against well-established telecommunications and cable players with
widespread brand recognition and seemingly endless resources. The
communications landscape is littered with defunct start-ups that raised
billions of investment dollars during the technology boom of the late
1990s, only to crash along with the stock market a few years later. Cable
and phone companies build, maintain and upgrade elaborate broadband
networks in most cities. Although each municipality has different
regulations, most have provisions that allow one cable and one landline
phone company to offer service to their residents. By the end of 2003,
either cable modem or DSL connections were used in almost all of the 22
million U.S. households with broadband access. But some new technologies
might break through. See more at the URL below.
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu]
http://news.com.com/Broadband%3A+Cable%2C+DSL+face+threats/2009-1034_3-5...
See also NYTimes
http://www.nytimes.com/2004/07/29/business/29place.html

OPEN MEETING AGENDA
The FCC released the agenda for next week's open meeting (note that the
meeting will be held Wednesday instead of the usual Thursday. The
Commission will consider: 1) the Homeland Security Policy Council will
present a report concerning this year's FCC regulatory, outreach, and
partnership initiatives in support of homeland security; 2) a Notice of
Proposed Rulemaking and Declaratory Ruling concerning the appropriate legal
and policy framework of the Communications Assistance for Law Enforcement
Act (CALEA), 3) a Report and Order concerning the reporting of service
disruptions by providers of telecommunications services; 4) a Notice of
Inquiry concerning the examination of the Emergency Alert System as an
effective mechanism for warning the American public during an emergency; 5)
a Fifth Report and Order and Order concerning measures to protect against
waste, fraud and abuse in the administration of the E-rate program; 6) a
Report and Order concerning the conversion of the nation's broadcast
television system from analog to digital television... and more! See URL below.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-250222A1.doc
--------------------------------------------------------------
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

BROADBAND
Why Policies Must Change
A Life-Saving Technology
Federal Rights-of-Way Website for Telecommunications Projects
On the Road to a Gigabit Broadband: Are we there yet?

MEDIA
NAB Seeking Cable-Carriage Confab
Senate Committee Votes on Public Broadcasting and other Media Reforms
Cable Wants FCC to Acknowledge Competitive Marketplace
CDT Urges FCC to Protect Internet Uses in TiVo Broadcast Flag Decision
Cutting Slasher Ads

BROADBAND

WHY POLICIES MUST CHANGE
Both President Bush and Sen Kerry have made broadband access a part of the=
=20
campaign for President, but what will the next Administration do? Federal=20
communications policy is a highly politicized and impossibly complicated=20
mess, with regional phone companies and cable networks locked in mortal=20
combat. Landmark telecommunications regulations, passed in 1996, when=20
broadband was largely theoretical, are likely to be reopened in Congress=20
next year--ensuring a new round of Washington infighting and=20
multimillion-dollar lobbying efforts. "When you look at the trends, it's=20
not chaos yet--but, if everything continues, it will be chaos in a couple=20
years," said Blair Levin, a Legg Mason analyst and former high-ranking=20
official at the FCC. "I don't think the trains will collide. But sometimes=
=20
it takes the trains being within earshot of each other before people do=20
anything." Experts increasingly say United States needs a more cohesive=20
national broadband policy and CNET News has some suggestions based on three=
=20
key points: incentives to spur competition, authority for municipalities to=
=20
build their own high-speed networks, and changes to communications laws=20
that predate the modern Internet.
There's much more at the URL below.
[SOURCE: C-Net|News.com, AUTHOR: John Borland]
http://news.com.com/Broadband%3A+Why+policies+must+change/2009-1034_3-52...
5.html?tag=3Dnl

A LIFE-SAVING TECHNOLOGY
Once thought of as a luxury, high-speed Internet access is viewed=20
increasingly as a necessity. Broadband is being used in projects that could=
=20
revolutionize such critical areas as education, health care and public=20
safety while creating enormous opportunities in business and entertainment.=
=20
Policymakers are recognizing that fast Internet connections are as=20
essential to the future of the economy now as railroads and highways were=20
in the last two centuries. So important is the technology that it has been=
=20
elevated to a national campaign issue this election year. President Bush=20
and Democratic challenger John Kerry have each outlined plans to increase=20
investment in the technology as part of their platform agendas, and=20
policymakers of all stripes cite it as an important driver of future=20
economic growth. Critical uses for broadband technology are multiplying=20
every day in a wide range of fields: 1) Public Safety. Emergency=20
services--including firefighters, police forces and medical crews--see=20
wireless broadband as a vital addition to their tools, and are lobbying=20
Congress to help improve these capabilities. 2) Health Care. Diagnoses and=
=20
consulting can be done with the help of high-quality audio and video and of=
=20
real-time data connections between central and remote facilities. 3)=20
Education. Schools at all levels are already using high-speed Internet=20
connections in teaching and research, and many see the networks as ways to=
=20
help smooth out the radically unequal distribution of resources between=20
different regions and institutions.
There's much more at the URL below.
[SOURCE: C-Net|News.com, AUTHOR: John Borland and Jim Hu]
http://news.com.com/Broadband%3A+A+life-saving+technology/2009-1034_3-52...
1.html?tag=3Dnl=20

FEDERAL RIGHTS-OF-WAY WEBSITE FOR TELECOMMUNICATIONS PROJECTS
To promote the deployment of broadband, NTIA has established a new=20
interagency website to provide information about the different federal=20
agencies' rights-of-way processes and contacts. The site is intended to=20
improve access to information about obtaining rights-of-way for projects=20
over federal land or property otherwise controlled by the federal=
government.
[SOURCE: National Telecommunications and Information Administration]
http://www.ntia.doc.gov/frowsite/index.html

ON THE ROAD TO A GIGABIT BROADBAND: ARE WE THERE YET?
A Self-Assessment Guide for Communities
This guide is designed to provide a benchmark of your community=92s current=
=20
readiness to participate in the enormous economic, social, governmental and=
=20
personal changes that high-speed communications entail. More important,=20
this guide provides a vision of specific steps and actions your=20
community=97government, businesses, schools, community groups and=20
citizens=97can take to benefit from these changes.
CENIC is a not-for-profit corporation serving the California Institute of=20
Technology, California State University, Stanford University, University of=
=20
California, University of Southern California, California Community=20
Colleges and the statewide K-12 school system. CENIC=92s mission is to=20
facilitate and coordinate the development, deployment and operation of a=20
set of robust multi-tiered advanced network services for this research and=
=20
education community.
[SOURCE: The Corporation for Education Network Initiatives in California=20
(CENIC)]
http://www.cenic.org/guide/

MEDIA

NAB SEEKING CABLE-CARRIAGE CONFAB
National Association of Broadcasters President Eddie Fritts sent National=20
Cable & Telecommunications Association President Robert Sachs a letter=20
requesting that broadcasting and cable leaders should meet soon to=20
negotiate outstanding digital-carriage issues. =93Our goal should be simple:=
=20
to set aside past policy differences while doing what=92s best for the=20
viewing public,=94 the letter reads. Mr. Fritts said his idea for a=20
conference came at the suggestion of Rep. Billy Tauzin (R-LA) at a private=
=20
meeting among industry players last week on Capitol Hill. NCTA spokesman=20
Brian Dietz said Sachs would respond directly to Fritts and looked forward=
=20
to meeting with him. Mr. Dietz noted that cable-broadcasting digital-TV=20
talks occurred a few years ago, but the NAB stopped attending. =93The NCTA=
=20
does not regard dual must-carry of all broadcast stations as a way to=20
advance the digital transition or jump-start discussions, which the NAB=20
abandoned two years ago,=94 Mr. Dietz said. =93Hopefully, the NAB has more=
=20
constructive ideas than asking cable systems to carry every commercial=20
station twice.=94 TVWeek reports that Dennis Wharton, an NAB spokesman, said=
=20
the previous round of discussions with NCTA resulted in no progress. But=20
Mr. Wharton said NCTA's claim that broadcasters had scuttled the talks was=
=20
"absolute hogwash."
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA438865?display=3DBreaking+News
(requires subscription)
Broadcast-Cable Talks on Carriage Proposed
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=3D5970
(requires registration)
See full text of NAB letter at
http://www.nab.org/Newsroom/PressRel/072604lettertoSachs.asp

SENATE COMMITTEE VOTES ON PUBLIC BROADCASTING AND OTHER MEDIA REFORMS
The Senate Commerce Committee, meeting on Thursday, July 22nd, supported=20
media reform on several fronts. The committee approved Chairman John=20
McCain=92s (R-AZ) bill to reauthorize the Corporation for Public=
Broadcasting=20
(=93CPB=94). The McCain bill contains no language that would threaten the=20
editorial independence of public broadcasting. However, the committee was=20
not able to offer any proposals to increase funding for public=20
broadcasting, and to increase the number of local public broadcasters on=20
the CPB board, because of a legislative controversy over an unrelated issue=
=20
that halted its work in mid-session. These proposals could be added to=20
the CPB reauthorization bill if and when it comes up for a vote by the=20
entire Senate this year. However, it is also possible that amendments=20
harmful to public broadcasting=92s editorial integrity and that give the CPB=
=20
board greater authority to intervene in public broadcasting programs could=
=20
be offered at a later date, so Common Cause activists will continue to=20
monitor the legislation.
[SOURCE: Common Cause Press Release]
http://www.commoncause.org/news/default.cfm?ArtID=3D371
Additional statements about this legislation:
CPB: http://www.cpb.org/programs/pr.php?prn=3D361
APTS: http://www.apts.org/

CABLE WANTS FCC TO ACKNOWLEDGE COMPETITIVE MARKETPLACE
In 1995, cable had a 91% share of the pay TV market; that share has=20
dwindled to 73% and the cable industry would like the FCC to acknowledge=20
that that means there is "vigorous rivalry" between cable and DBS. A=20
declaration by the FCC that the market is highly competitive could have an=
=20
impact on how cable is regulated. The information is sent to Congress each=
=20
year by the FCC in a report and a highly competitive market could=20
potentially face a looser regulatory environment. In comments filed at the=
=20
FCC, the National Association of Telecom Officers & Advisors (NATOA) and=20
the Alliance for Community Media said incumbent cable operators are=20
=93engaging in a range of anti-competitive practices to thwart competition,=
=94=20
including =93predatory pricing, targeted rate discrimination, denial of=20
access to content, denial of access to customers, refusal to deal with=20
contractors and suppliers, destruction of property, and an assortment of=20
other unfair practices.=94 NATOA said cable operators deploying digital TV=
=20
are =93routinely violating Cable Act rules on charging equipment fees=
without=20
regard to actual costs and are ignoring the Commission=92s tier=20
buy-through-regulations.=94 The FCC
should curb these practices, NATOA said.
[SOURCE: Communications Daily, AUTHOR: Brigitte Greenberg, Jeanene=
Timberlake]
(Not available online)

CDT URGES FCC TO PROTECT INTERNET IN TIVO BROADCAST FLAG DECISION
A new CDT paper urges the Federal Communications Commission (FCC) to=20
approve secure Internet technologies under its broadcast content protection=
=20
rules. The FCC is deciding which technologies will be permitted to access=20
digital TV programs, and is reviewing a system--opposed by some content=20
companies--that would allow a TiVo user to watch recorded shows on up to 9=
=20
different TiVo devices they register. At stake is whether the FCC will=20
stand by its commitment to allow secure Internet uses under the new rules.
"All Eyes on TiVo: The Broadcast Flag and the Internet"
http://www.cdt.org/copyright/20040726tivoflag.pdf
CDT's Broadcast Flag Introduction
http://www.cdt.org/copyright/broadcastflag/introduction.shtml
"Implications of the Broadcast Flag: A Public Interest Primer"
http://www.cdt.org/copyright/031216broadcastflag.pdf
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)

CUTTING SLASHER ADS
Earlier this month the Federal Trade Commission praised the entertainment=20
industry for honoring pledges not to advertise violent movies, music and=20
games when kids make up 35% or more of the audience. But the Commission=20
wants the industry to do more. the FTC wants to stop marketing violent=20
entertainment during all of prime time, regardless of the percentage of=20
children watching. That=92s because most prime time shows draw large raw=20
numbers of kids even when the audience is mostly adults. The FTC complained=
=20
that 59 ads for seven films rated R for violence ran during an eight-week=20
period in programs popular with teens. For instance, The Matrix Reloaded=20
was advertised on WWE Smackdown21 and BET=92s Rap City. So far, the industry=
=20
appears to be avoiding the FTC=92s latest request. Neither the Motion=
Picture=20
Association of America nor The Director=92s Guild would comment on the new=
=20
entreaty. Industry watchdogs are taking notice, however, and are asking=20
movie studios and others to rethink their advertising strategies. =93A great=
=20
deal more needs to be done=94 says Sen. Sam Brownback (R-KS).
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA438265?display=3DBreaking+News
(requires subscription)
--------------------------------------------------------------
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

-------------------------------
NOW with Bill Moyers
Friday, July 23 at 9PM on PBS (check local listings)
If voters are relying on local television news to help them make
decisions in this important election year, recent studies show that they
may be left in the dark. By some estimates, more than half of local news
broadcasts may not cover politics at all in the weeks before the election,
and important local races and issues are often completely ignored. In a
nation where the public owns the airwaves, are local stations driving
corporate profits at the expense of the communities they are supposed to
serve? On Friday, July 23, 2004 at 9 p.m. on PBS (check local listings),
NOW's David Brancaccio takes a hard look at how local broadcasters are
covering politics. With stations expecting record earnings from political
ads, the program examines the winners and losers in the battle for localism
and profiles one station that is getting it right.
-------------------------------

BROADCASTING
Hill Tees Up More LPFMs
Copps, Adelstein Rally media Activists for New Ownership Battle
Senate Commerce Committee Passes Public Broadcasting Reauthorization Bill

SATELLITE/CABLE
Senate Panel OKs Retransmission Measure
Forget a la carte Cable Idea; the Future is in Internet TV

E-RATE
House Commerce Chairman Barton Pledges Legislation to Reform E-rate Program

TELECOM
FCC Approves Interim Phone Rules
AT&T Retreats From Tradition
Bells Win a Battle, Not Necessarily the War
Senate Panel Embraces State VoIP Taxes

NOMINATIONS
Senators Press White House on Adelstein's Behalf
Vote on FTC Chairman Blocked

BROADCASTING

HILL TEES UP MORE LPFMs
The Senate Commerce Committee approved a bill Thursday aimed at permitting
more low power FM radio stations to spring up in big cities around the
country. The bill also would eliminate a 2000 Congressional mandate for
further testing on the economic impact of potential interference from LPFM
stations on full power FM stations. Sen Conrad Burns had offered an
amendment to the bill that would have required an economic impact study,
but the amendment was rejected. Sen John McCain said passage of the bill
was first loss ever for National Association of Broadcasters in Senate
Commerce Committee.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA438262?display=Breaking+News
(requires subscription)
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
See the Senate Commerce Committee news release on this action
http://commerce.senate.gov/newsroom/printable.cfm?id=224486
Benton Foundation Chairman Charles Benton said, "Today, the Senate Commerce
Committee moved to get the static out of the Community radio issue and send
a clear signal that the public should benefit from Low Power
Radio. Today's decision moves us one step closer to allowing the FCC to
create opportunities for new voices on the air waves and to allow local
groups, including schools, churches and other community-based
organizations, to provide programming responsive to local community needs
and interests'. By tuning into the public's needs, Low Power FM has
finally won out over high power politics."
Additional press statements:
Prometheus Radio Project
http://www.prometheusradio.org/release_win_s2505.shtml

COPPS, ADELSTEIN RALLY MEDIA ACTIVISTS FOR NEW OWNERSHIP BATTLE
Yes, yes, we covered the FCC Localism Task Force hearing in Monterey
yesterday morning, but couldn't you stand a little more good news as we
start the weekend? Commissioners Copps and Adelstein rallied the audience
for a continued fight over the Commission's media ownership rules. Some in
the audience called for a mandatory set-aside of 10% of prime-time for
programming from or concerning local communities. "The ultimate reality
show is not how many bugs someone can eat on a deserted island,"
Commissioner Copps said.
"The ultimate reality show is this fight over democracy and the right to
control the public airwaves." Broadcasters highlighted their news, public
affairs and educational programming, PSAs and other support of civic and
community groups. Eduardo Dominguez of Telemundo's KSTS-TV San Jose told
how his station explained to its Hispanic audience how to open a checking
account and how immigrants should deal with the public schools, and
presented news from Mexico and El Salvador. He, along with Joseph Heston of
Hearst Argyle's KSBW-TV Salinas, and other commercial broadcasters insisted
community commitment was simply good business -- a much more effective
impetus than regulation. They said affiliation with big companies only
strengthened their localism by providing additional resources, such as by
making available government capital bureau stories on local issues.
Representatives of the United Way of Monterey County and the National
Center for Missing & Exploited Children gave local broadcasters high praise
for their support. But one audience speaker after another joined several
panelists in denouncing local commercial broadcasters for what they
contended was trivializing and largely ignoring state and local politics,
ethnic and minority groups and local musicians and other artists. Most of
the audience responded enthusiastically to critiques of broadcasters and
the Commission.
[SOURCE: Communications Daily, AUTHOR: Louis Trager]
(Not available online)
Free Press has collected even more coverage. See
http://mediareform.net/townmeetings//monterey

SENATE COMMERCE COMMITTEE PASSES PUBLIC BROADCASTING REAUTHORIZATION BILL
The Senate Commerce, Science, and Transportation Committee today approved
by voice vote, S. 2645, the Public Broadcasting Reauthorization Act of
2004. Senator McCain (R-AZ) introduced the legislation on July 13, 2004.
This legislation is designed to reauthorize the Corporation for Public
Broadcasting (CPB) through fiscal year 2011. This independent agency has
not been reauthorized since 1992. The bill does the following: 1) Provides
the Corporation the explicit authority to award grants for the production
and acquisition of local programming and allows stations to use CPB funds
supporting the digital transition to produce local digital programming, 2)
Expands the definition of public telecommunications services to capture the
services public broadcasters are now providing through their web sites and
through digital multicasting, and; 3) Allows CPB to recoup some federal
funds provided to a public broadcast station if the broadcaster sells the
station to an entity that does not offer public broadcasting services.
SOURCE: US Senate]
http://commerce.senate.gov/newsroom/printable.cfm?id=224485

SATELLITE/CABLE

SENATE PANEL OKs RETRANSMISSION MEASURE
The Senate Commerce Committee on Thursday approved legislation that would
require satellite operators to offer all retransmissions of local broadcast
signals on a single dish within 18 months. The legislation also opens the
door for satellite companies to offer distant digital TV signals to
subscribers that can't receive those from local affiliates -- an initiative
broadcasters have opposed. Pro-broadcast provisions in the legislation make
clear that satellite operators can only offer the distant network digital
signals in areas where they are already offering the local analog signals
of broadcast stations. In addition, the legislation would require satellite
operators to cut off the distant network feeds within 120 days of the time
an affiliate begins offering digital service to the homes at issue.
In a somewhat related story from Broadcasting & Cable, small TV group
owners -- looking to save money on electricity -- are asking FCC Chairman
Michael Powell to drop plans that would force stations to reach their
complete licensed coverage area with a DTV signal by a certain date or have
that licensed coverage area reduced. But Congress want progress on the
transition, not stalling.
[SOURCE: TV Week, AUTHOR: Doug Halonen]
http://www.tvweek.com/news/web072204.html#senate
See the Senate Commerce Committee news release on this action
http://commerce.senate.gov/newsroom/printable.cfm?id=224502
Broadcasters Fight Coverage Mandate
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA438289?display=Breaking+News
(requires subscription)

FORGET A LA CARTE IDEA; THE FUTURE IS IN INTERNET TV
A la carte, scmal-la-carte. After panning the idea of a la carte cable TV,
Langberg concludes, "Anyone searching for relief from high cable rates in
Washington is stuck on the wrong coast. Silicon Valley will ultimately
provide a much better solution: broadcast-quality television delivered
through the Internet, completely independent of the bloated cable industry.
Akimbo, a start-up company in San Mateo, says it's no more than six weeks
away from launching a digital video recorder (DVR) that gets TV shows
through a high-speed Internet connection rather than a cable, satellite
dish or roof antenna. San Jose-based TiVo, which pioneered the DVR
category, plans to add Internet delivery next year. Cable companies will
have to scramble like they've never scrambled before to meet the challenge
of Internet TV. Their pain will be our gain."
[SOURCE: San Jose Mercury News, AUTHOR:Mike Langberg]
http://www.mercurynews.com/mld/mercurynews/business/technology/9224062.htm
See also:
A La Carte Hits Home for Ferree
FCC Media Bureau chief Kenneth Ferree's wife asks, Why are we paying for
ESPN if we don't watch ESPN. "When we get to 50- or 100-megabit per second
downstream speeds, there is going to be a lot of content on broadband and
if the cable operator is still trying to shove a 200-channel package down
people's throat, take it or leave it, there're going to be a lot more
leaving it at that point," Ferree said.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA438315?display=Breaking+News
(requires subscription)

E-RATE

HOUSE COMMERCE CHAIRMAN BARTON PLEDGES LEGISLATION TO REFORM E-RATE PROGRAM
At the Subcommittee on Oversight & Investigations hearing Thursday, House
Commerce Committee Chairman Joe Barton (R-TX) pledged legislation next year
to improve the administration of the federal E-rate program, beset by
scandal at the local level. Rep Barton said "we're going to make structural
changes in this program statutorily, probably in the next Congress... to
make sure this doesn't happen again." FCC Wireline Bureau Chief William
Maher said the bureau has recommended rule changes for Commission action at
the August 4 agenda meeting to target bad actors better. He said the bureau
recommends: 1) Expanding the document retention requirements for
applicants "to maintain a comprehensive paper trail;" 2) Modifying E-rate
forms "to expand the required certifications" which "help deter bad actors
because their falsification is a federal criminal offense;" 3) "Heightened
scrutiny of applications from E-rate beneficiaries that have violated the
statute or the Commission's rules in the past;" and 4) "Improvements to the
certifications that beneficiaries make regarding their compliance with
substantive program rules."
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
See link to the Subcommittee's web page for this hearing
http://energycommerce.house.gov/108/Hearings/07222004hearing1343/hearing...

TELECOM

FCC APPROVES INTERIM PHONE COMPETITION RULES
Unexpectedly, the FCC voted on and passed Wednesday night, interim rules
governing the leasing of Baby Bell local phone networks by competitors. The
vote was along party lines. The rules probably include a 6-month freeze on
the prices contained in existing interconnection agreements. After 6
months, if no final rules are in place, a price increase -- reportedly 15%
-- might be applied to existing wholesale customers. Rates for new
customers after the 6-month period would pay whatever was negotiated with
the Baby Bell. The release of this order will coincide with a request for
comments on new rules. Medley Global Advisors issued a report saying what
the FCC voted on appears to be consistent with what was expected "with a
few minor changes." The report said "there is a tectonic shift emerging in
the industry where [competitors] are moving away from consumer voice
markets in search of growth in areas such as enterprise services and VoIP."
Medley said AT&T's announcement that it's leaving consumer services is an
example. "Further shake-out among the [competitors] is expected over the
interim 6 month freeze period."
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

AT&T RETREATS FROM TRADITION
Twenty years after its monopoly was broken up, AT&T is fighting for its
survival. Yesterday, the company announced it will no longer no longer
market long-distance service to consumers, instead focusing on corporate
sales which account for about 70% of its revenue. Consumer groups called
AT&T's retreat a serious setback because it will lessen competition, which
has driven down rates for consumers. "This is devastating. This takes the
most revered name in quality long-distance service and the most aggressive
competitor to the [regional] Bell monopolies out of play," said Gene
Kimmelman, director of the Washington office of Consumers Union. Mr.
Kimmelman blamed the federal regulatory policy for AT&T's decision to all
but walk away from the consumer market. "This is an end to an era of
competition. It has been totally undermined by the Bush administration's
refusal to go to bat for consumers in the courts and through the regulatory
process," he said.
[SOURCE: Washington Post, AUTHOR: Christopher Stern and Griff Witte]
http://www.washingtonpost.com/wp-dyn/articles/A7239-2004Jul22.html
(requires registration)
See also:
Customers Can Keep Service
[SOURCE: Washington Post]
http://www.washingtonpost.com/wp-dyn/articles/A7225-2004Jul22.html
(requires registration)
There's also coverage in
LATimes:
http://www.latimes.com/business/printedition/la-fi-phones23jul23,1,42038...
USAToday http://www.usatoday.com/usatonline/20040723/6391524s.htm

BELLS WIN BATTLE, NOT NECESSARILY THE WAR
The Baby Bells still control more than 90% of the local landline phone
market, giving them great power in controlling access to homes. But
competition from wireless and cable technologies means that millions of
households a year are dropping their local Bell landline telephone service.
And the accelerating trend toward inexpensive Internet-based phone service,
even by the Bell companies themselves, is eroding the advantages the local
telephone companies have long wielded with their high-quality, but costly,
conventional networks. Moreover, the Internet phone services - so far, at
least - are not subject to the taxes and universal service fees that the
Bells must tack onto their customers' monthly telephone bills. Gene
Kimmelman of Consumers Union says the argument that wireless competitors
offer heightened competition to the regional phone giants does not hold
water since the largest wireless companies are owned by the Bells. (Verizon
has majority ownership of Verizon Wireless, while BellSouth and SBC jointly
own Cingular Wireless and, if a recent acquisition is finalized, AT&T
Wireless.)
[SOURCE: New York Times, AUTHOR: Matt Richtel]
http://www.nytimes.com/2004/07/23/business/23landscape.html?hp
(requires registration)

SENATE PANEL EMBRACES STATE VOIP TAXES
An amendment offered Thursday by Sen. Byron Dorgan (D-ND) turned Sen. John
Sununu's (R-NH) bill intended to be a safeguard from state regulation of
VoIP services into legislation now that would permitted states to regulate
VoIP services in two ways: levying taxes to pay for universal service and
for compensating traditional telephone companies for the use of their phone
lines through so-called access charges. It's unclear what will happen next
to the Senate VoIP bill. There's not much time left this year for the full
Senate to act on the measure, and the House of Representatives is
considering bills that take slightly different approaches. Another
amendment by Senators Burns (R-MT) and Nelson (D-NE) would preserve the
ability of states to require VOIP applications to provide 911 and E911
services.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Senate+panel+embraces+state+VoIP+taxes/2100-1028_3-5...
See the Senate Commerce Committee news release on this action
http://commerce.senate.gov/newsroom/printable.cfm?id=224501
See also
VoIP Technology Must Meet Public Interest Obligations
[SOURCE: Communications Workers of America Press Release]
http://www.cwa-union.org/news/PressReleaseDisplay.asp?ID=438

NOMINATIONS

SENATORS PRESS WHITE HOUSE ON ADELSTEIN'S BEHALF
Sen. John McCain (R-AZ) said today that all members of the Senate Commerce
Committee plan to sign a bipartisan letter of support to the White House
endorsing the renomination of Jonathan Adelstein for a Democratic seat at
the FCC. The Administration has failed to act on the nomination for 18
months, a Commissioner Adelstein's term is set to end at the end of this
Congress. "It just defies imagination as to why [Mr. Adelstein's
renomination] hasn't been done," said Sen. Trent Lott (R-MS).
[SOURCE: TV Week, AUTHOR: Doug Halonen]
http://www.tvweek.com/news/web072204.html#senators

VOTE ON FTC CHAIRMAN BLOCKED
Sen. Ron Wyden (D-Ore.) used a rare parliamentary maneuver yesterday to
block a Senate Commerce Committee vote on President Bush's nomination to
head the Federal Trade Commission, Deborah P. Majoras. Sen Wyden asked for
a delay on the vote which was expected to follow along party lines and
approve the nominee. Then after the Committee considered a large number of
bills, Sen Wyden invoked a rule limiting hearings to two hours when the
Senate is in session. Ms. Majoras may get a summer recess appointment from
President Bush. She could then serve as chairman until 2005, when the
present Congress adjourns.
[SOURCE: Washington Post, AUTHOR: Caroline E. Mayer]
http://www.washingtonpost.com/wp-dyn/articles/A7610-2004Jul22.html
(requires registration)
--------------------------------------------------------------
Have a great weekend. We'll be back Monday.
--------------------------------------------------------------
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.
--------------------------------------------------------------

The Senate Commerce Committee has a full agenda of bills under=20
consideration today including the Satellite Home Viewer Extension Act, VOIP=
=20
Regulatory Freedom Act of 2004, low power FM radio stations (see story=20
below in Broadcasting section), and reauthorization of the Corporation for=
=20
Public Broadcasting. On the House side, there's another Oversight and=20
Investigations hearing concerning the E-rate. For these and other upcoming=
=20
media policy events, see http://www.benton.org/calendar.htm

LOCALISM/PUBLIC INTEREST OBLIGATIONS
FCC Tunes into California, Hears Static on Media Ownership Rules
Powell to Miss Monterey
Broadcasters Not Meeting Obligations to Kids, Says New Analysis

MORE ON BROADCASTING
House Members Debate How to Implement Hard Date for DTV
GAO: Preparation Key to Berlin DTV Plan
Burns Takes Aim At LPFM
Tribune Asks Court to Allow Cross-Ownership
TiVo's Plans Lead to Fight On Copyrights

CABLE
A La Carte Cable Good For What Ails Television

TELECOM
Phone Companies Raise Fees, Again
AT&T Fights Phone Fees on Calling Cards
Cell Phone Customers To Get Better Disclosure
Nextel Doubts Opponents Will Seek Stay of Rebanding Order
VoIP Could Take $400 Million From California Universal Service in 2008,=20
PUC Staff Says

LOCALISM/PUBLIC INTEREST OBLIGATIONS

FCC TUNES INTO CALIFORNIA, HEARS STATIC ON MEDIA OWNERSHIP RULES
Hundreds of media watchers and consumer advocates turned up the volume in=20
Monterey Wednesday night, telling members of the Federal Communications=20
Commission they are not doing enough to protect local radio and television=
=20
stations from corporate takeovers. "The FCC needs to create and uphold=20
regulations giving people free access to the airwaves and local access=20
during prime time," said Lindsay Kelliner, a Pacific Grove, Calif.=20
resident. Some speakers addressed the pressures on news operations due to=20
industry consolidation. "What we're able to cover changes and we can't=20
often get to the bottom of local stories that really matter," said Erin=20
Poh, California director of the Media Workers Guild. Some speakers at=20
Wednesday's hearing addressed the need for multilingual broadcasting and=20
how the new regulations could affect the nation's cultural literacy. "We=20
need a broad definition of public and local to include Spanish speakers,"=20
Blanca Zarazua, chair of the Hispanic Chamber of Commerce of Monterey=20
County, told the commissioners. Delia Saldivar, regional manager of=20
KHDC-FM, a Salinas radio station that offers in programs in English,=20
Spanish, Hawaiian and Tagalog, said representing linguistic minorities was=
=20
something independent broadcasters were uniquely situated to do. "I urge=20
the FCC to look closely at the demographics of our communities," she said.=
=20
"This is what it means to serve the public."
[SOURCE: San Francisco Chronicle, AUTHOR: Associated Press]
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/07/2...
ate2320EDT0210.DTL

POWELL TO MISS MONTEREY
FCC Chairman Michael Powell will miss the second Localism task Force=20
hearing, announcing he will not be in Monterey (CA) this evening because he=
=20
will be vacationing with his family in Cape Cod. Chairman Powell's top=20
legal aide, John Cody, will be there, as will audio-video people to record=
=20
it so that Chairman Powell can review the tape on his return, as he did=20
with the South Dakota localism hearing in late May that he missed due to a=
=20
dinner with President Bush, said Mr. Cody. Besides, says FCC spokesman=20
David Fiske, "there was never any expectation that all five of the=20
commissioners would go to all the hearings. Eighty percent of it is=20
listening to what people say, and between John Cody and the chairman, they=
=20
will be listening."
"The American public should be incensed," said Free Press managing director=
=20
Josh Silver, "that just last week Powell attended a series of industry=20
events in nearby Menlo Park and San Francisco, but now he can't attend the=
=20
very hearing he called for. As always, Michael Powell has plenty of time=20
for big media companies and no time for the people whose democracy is being=
=20
compromised by his policy choices."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA438002?display=3DBreaking+News
(requires subscription)

BROADCASTERS NOT MEETING OBLIGATIONS TO KIDS, SAYS NEW ANALYSIS
Children Now and the Institute for Public Representation at Georgetown=20
University looked at the public interest performance of broadcasters in the=
=20
Monterey-Salinas market will disturbing findings. there are no=20
locally-produced E/I programs in the market that are specific to the needs=
=20
and interests of a diverse community, where more than half of all children=
=20
are Latino. all 20 programs that broadcasters claim as core educational=20
programming either originate from networks or are syndicated. Two stations=
=20
failed to provide three hours per week of children's educational or=20
informational programming while two stations barely met the minimum set by=
=20
FCC rules. In addition, the market's Fox affiliate counts towards its=20
minimum "NFL Under the Helmet," a show "where football and pop culture=20
collide." The stations claims the no-holds barred show "showcases the=20
pro-social on and off the field activities of the NFL's leading players and=
=20
coaches."
[SOURCE: Children Now Press Release]
http://www.childrennow.org/newsroom/news-04/pr-07-21-04.cfm

MORE ON BROADCASTING

HOUSE MEMBERS DEBATE HOW TO IMPLEMENT HARD DATE FOR DTV
Communications Daily reports that there's growing support for setting a=20
hard date for the transition to digital-only broadcasting with House=20
Commerce Chairman Joe Barton (R-TX) suggesting December 31, 2006. Debate=20
during a House Telecom Subcommittee hearing on Wednesday focused more on=20
details about how to meet such a deadline than whether there should be a=20
deadline. Rep. Rick Boucher (D-VA) seemed to be the most skeptical of=20
transition plans, saying all U.S. analog set owners needed to be =93held=20
harmless.=94 In such a scenario, a converter box subsidy could run as high=
as=20
$4.5 billion, while the auction might bring in only $4 billion, or perhaps=
=20
less, Rep Boucher
said. He said predictions of auction receipts were almost always wrong.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
Links to hearing testimony
http://energycommerce.house.gov/108/Hearings/07212004hearing1339/hearing...

GAO: PREPARATION KEY TO BERLIN PLAN
A Government Accountability Office of the Berlin digital television=20
transition finds that it was successful because regulators adopted a plan=20
that prepared consumers for the change and subsidized converters for=20
low-income people. The GAO report said Berlin=92s plan had three key=20
ingredients: a consumer-education effort, set-top-box subsidies for=20
low-income people and a date-certain for the analog shutoff that was=20
understood by all in the TV-distribution business. The report=92s release=
was=20
timed to coincide with a House Commerce Subcommittee on Telecommunications=
=20
and the Internet hearing on the U.S. digital-TV transition, which is to end=
=20
Dec. 31, 2006, in those markets where at least 85% of TV households have=20
digital-reception equipment, such as digital-cable boxes or digital-TV sets=
=20
with off-air tuners. Insight Communications Co. Inc. CEO Michael Willner=20
testified in favor of a firm digital-TV-transition date -- a view shared by=
=20
House Energy and Commerce Committee chairman Joe Barton (R-Texas), who=20
advocated support for Dec. 31, 2006. Some lawmakers expressed concern that=
=20
a firm cutoff date would have to include a plan dealing with about 45=20
million analog-TV sets that would be useless after analog broadcasting=20
ceased. The lawmakers noted that millions of cable and satellite homes have=
=20
TV sets that are not connected to those pay TV services.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA438007?display=3DBreaking+News
(requires subscription)
See the GAO report online:
German DTV Transition Differs from U.S. Transition in Many Respects, but=20
Certain Key Challenges Are Similar.
http://www.gao.gov/cgi-bin/getrpt?GAO-04-926T

BURNS TAKES AIM AT LPFM
The National Association of Broadcasters says that Senator Conrad Burns=20
(R-MT), a former broadcaster himself, will introduce a bill Thursday to=20
allocate $800,000 to further study interference issues related to low power=
=20
FM radio and slow a bill before the Senate Commerce Committee today that=20
would open more opportunities for LPFM stations. The amendment would=20
require the FCC to conduct independent audience testing, as well as conduct=
=20
an economic impact study on existing broadcasters.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
(http://www.businessweek.com/technology/index.html/)

TRIBUNE ASKS COURT TO ALLOW CROSS-OWNERSHIP
What Andy Schwartzman wineth, the Tribune Company tries to take away!=20
Tribune Co. asked a federal appeals court to allow mergers between=20
newspapers and broadcast stations in markets with at least nine television=
=20
stations. Tribune attorneys noted that the FCC found no limits were needed=
=20
in markets with nine television stations =97 precisely the markets in which=
=20
the company's newspapers operate, including the Los Angeles Times and the=20
Chicago Tribune.
[SOURCE: Los Angeles Times, AUTHOR:Dow Jones/Associated Press]
http://www.latimes.com/business/printedition/la-fi-rup22.12jul22,1,63560...
tory?coll=3Dla-headlines-pe-business
(requires registration)

TIVO'S PLANS LEAD TO FIGHT ON COPYRIGHTS
TiVo plans to roll out a system that will allow programs to be transferred=
=20
from the TiVo box to a computer via a small device attached to the PC. The=
=20
program could then be sent to other devices within the home and viewed on=20
them. Such devices, including laptops or desktop computers, would be=20
registered with the company and would share encoding and decoding=20
technology that prevents viewing by non-registered devices. Next year, TiVo=
=20
plans to expand the system to allow programs to be transferred to=20
registered devices outside the home, such as at an office, vacation cabin=20
or even a friend's house across the country. A maximum of 10 devices could=
=20
be registered by the subscriber. Hold your horses, says Hollywood studios=20
and the National Football League: the new technology could compromise the=20
copyrights of shows that broadcasters send over the airwaves in digital=20
form, which offers much higher sound and video quality than what viewers=20
typically get today. The organizations fear that computer enthusiasts would=
=20
capture those programs and begin trading them online in the same way that=20
millions of music files are shared daily, which record companies have said=
=20
has cut into their profit. TiVo insists its system will not allow such=20
mass Internet distribution. Opponents to TiVo's new technology have filed a=
=20
complaints at the FCC
[SOURCE: Washington Post, AUTHOR: Jonathan Krim]
http://www.washingtonpost.com/wp-dyn/articles/A4042-2004Jul21.html
(requires registration)

CABLE

A LA CARTE CABLE GOOD FOR WHAT AILS TELEVISION
Providing consumers with the right to choose which cable and satellite=20
networks they wish to subscribe to will enhance viewpoint diversity, reduce=
=20
media concentration, and avoid government regulation of so-called=20
"indecent" content on cable. It's no wonder, then, that the big cable=20
companies are against it. A la carte would give consumers the option of not=
=20
paying for and receiving channels in their homes they deem "indecent," as=20
they must today when those offending cable networks are bundled on a=20
take-it-or-leave-it basis. An a la carte option is far healthier for our=20
democracy and culture than the curbing of Constitutionally protected free=20
speech, and would eliminate the need for the Commission to expand its=20
overly-broad and vague new indecency regulations to cable.
[SOURCE: MediaChannel.org, AUTHOR: Jonathan Rintels, Executive Director of=
=20
the Center for Creative Voices in Media]
http://www.mediachannel.org/views/dissector/affalert234.shtml

TELECOM

PHONE COMPANIES RAISE FEES, AGAIN
As they complain about possible rate hikes to use local Baby Bell networks,=
=20
the biggest long distance companies are raising the costs of their long=20
distance services, trying to squeeze the last dollar out of subscribers to=
=20
plans they no longer promote. will show up in bills for the first time in=20
coming weeks -- some of them wrapped in tough-to-fathom terminology like=20
"mobile termination" fees (an extra charge for calls to cellphones in=20
foreign countries) or "regulatory recovery" fees (a charge that carriers=20
say helps them recover the cost of complying with government regulations=20
and taxes). The latest increases follow a series of nickel-and-dime hikes=20
over the past few years as the carriers try to make up for declines in=20
their consumer operations.
[SOURCE: Wall Street Journal, AUTHOR: Shawn Young at shawn.young( at )wsj.com]
http://online.wsj.com/article/0,,SB109044487974070127,00.html?mod=3Dtoda...
s_personal_journal
(requires subscription)

AT&T FIGHTS PHONE FEES ON CALLING CARDS
Using a prepaid long distance card at home or on the road? If you use an=20
AT&T card, you may have noticed an annoying message from the retailer=20
saying the FCC is considering applying regulatory fees to the card -- and=20
asking you "to tell the White House you want prepaid card rates to stay=20
low." At the heart of the dispute is AT&T's claim that calling cards are an=
=20
"information service," a regulatory term of art that refers to an offering=
=20
that is more than a simple telephone call. For instance, directory=20
assistance and call waiting are "information services." AT&T claims that=20
its prepaid cards are an information service because callers are subjected=
=20
to recorded advertisements during their calls. Information services are not=
=20
required to contribute to the Universal Service Fund, a federal program=20
that provides subsidies for low-income and rural telephone users.=20
Information services also are not required to pay access fees, which are=20
designed to compensate regional phone companies such as Verizon=20
Communications Inc. for the cost of connecting customers to the local=20
telephone network. In filings with the Securities and Exchange Commission,=
=20
AT&T has claimed that it may be required to pay as much as $110 million in=
=20
access charges and Universal Service Fund payments if it loses the fight at=
=20
the FCC.
[SOURCE: Washington Post, AUTHOR: Christopher Stern]
http://www.washingtonpost.com/wp-dyn/articles/A4301-2004Jul21.html
(requires registration)

CELL PHONE CUSTOMERS TO GET BETTER DISCLOSURE
Verizon Wireless, Cingular Wireless and Sprint PCS, which have 84 million=20
customers, agreed to provide coverage maps to customers and to give them at=
=20
least two weeks to terminate new contracts without being charged a penalty.=
=20
Additionally, new customers can terminate a service contract within the=20
first three days without being charged an activation fee. The companies=20
also must make surcharges, fees and taxes clear. The agreement is with 32=20
states that had been investigating the companies for possible violation of=
=20
consumer protection laws. Janee Briesemeister, director of=20
EscapeCellHell.org, a division of Consumers Union, said in a statement that=
=20
the settlement will be a significant improvement for customers who have=20
"been stuck in a cell phone hell of misleading advertising and meaningless=
=20
coverage maps."
"The fact that it took a massive investigation by states' attorneys to=20
force these cell phone companies to do many of the things they promised=20
they would do on their own shows the need for regulation," Briesemeister=20
said. "Maybe consumers can't be heard on their cell phones, but their=20
frustration with the market has come through loud and clear." The companies=
=20
will also pay $5 million to cover the cost of the inquiry and for "general=
=20
consumer education," such as public service announcements.
[SOURCE: Washington Post, AUTHOR: Lauren Bayne Anderson]
http://www.washingtonpost.com/wp-dyn/articles/A4046-2004Jul21.html
(requires registration)
See Consumers Union press release at
http://www.consumersunion.org/pub/campaigncellhell/001261.html

NEXTEL DOUBTS OPPONENTS WILL SEEK STAY OF REBANDING ORDER
As the FCC shoots for an August 8 deadline for releasing the 800 MHz=20
rebanding order, Nextel continues to study the details and consider whether=
=20
or not it should accept the plan. Part of that consideration is how much=20
resistance to expect from other carriers. The benefits of the order are so=
=20
significant for public safety groups that it=92s unlikely rival carriers=
will=20
go to court to seek a stay when the order is released by the FCC, said=20
Nextel Senior VP Robert Foosaner Wednesday. =93The decision right now is=
very=20
favorable to public safety,=94 Mr. Foosaner said. =93It reduces=
interference.=20
It increases the useful spectrum ... and it=92s fully funded, if we=20
understand it correctly. The benefits to public safety are so substantial=20
that I believe that will sway the opponents of the original consensus=20
plan.=94 He added, =93To pursue a stay would be a slap in the face to first=
=20
responders. I do not believe that the corporations who are opposing this=20
would deem that to be a responsible action.=94
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)

VOIP COULD TAKE $400 MILLION FROM CALIFORNIA UNIVERSAL SERVICE IN 2008, PUC=
=20
STAFF SAYS
Estimating that up to 43% of California businesses may switch to VoIP by=20
2008, the state's Public Utilities Commission is predicting the following=20
losses for programs aimed at keeping people connected to phone networks:=20
$114-$253 million for the High Cost Funds A & B -- to promote service in=20
high-cost areas through subsidies to SBC, Verizon and 17 small companies,=20
the Universal Lifeline Fund, providing subsidies to low-income users, is=20
seen losing $48-$107 million, the Deaf & Disabled Communications Fund=20
$13-30 million and the California Teleconnect Fund for school, library and=
=20
rural medical and community-based organizations $8-$17 million. That would=
=20
have a =93huge impact=94 on the programs, for which California spends $750=
=20
million a year, the most in the country, a PUC official said. It=92s a =93bi=
g=20
concern=94 to the PUC that =93universal service funding will not be able to=
be=20
provided,=94 either from older providers whose conventional circuit-switched=
=20
service is severely eroded or from VoIP
providers if they are exempted from the requirement.
[SOURCE: Communications Daily, AUTHOR: Louis Trager]
(Not available online)
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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.
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