August 2004

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

TELECOM
Phone Companies Ask Court to Vacate FCC=92s Interim Competition Order
Phone Industry Faces Upheaval As Ways of Calling Change Fast
Verizon Blames Federal Rules for Broadband Holdup
FCC Chief Can Take a Bow for Work in Wireless Arena

QUICKLY
Nielsen Revises Ratings Point as TV Households Grow
Court: Comcast Can't Challenge PEG Requirements
The Unofficial Media Guide to the Republican National Convention
Public Knowledge Urges Support For Alternative Copyright Legislation
Internet File Sharing: The Evidence So Far and What It Means for the Future
Dozens Charged in Crackdown on Spam and Scams

TELECOM

PHONE COMPANIES ASK COURT TO VACATE FCC'S INTERIM COMPETITION ORDER
There seems to be no way to keep telephony regulation out of the courts.=20
Qwest, Verizon and USTA filed a petition at the U.S. Appeals Court (DC)=20
late Monday night, asking the court to =93invalidate=94 the FCC's interim=
phone=20
competition order released by the Commission on Friday. The FCC=92s interim=
=20
order freezes current rates for 6 months while the agency works on adopting=
=20
permanent rules to replace those overturned in March by the D.C. Circuit.=20
The petitioners are arguing that by adopting the interim rules, the=20
Commission basically gave itself a six month extension on rules the court=20
ruled out two months ago. ALTS General Counsel Jonathan Oxman said the FCC=
=20
action was taken in response to the Bells=92 voluntary commitments to=20
maintain the status quo for 6 months. Those commitments =93were so full of=
=20
holes that the FCC was forced to back them up with emergency administrative=
=20
action,=94 he said, =93now that the FCC has formalized those commitments,=
the=20
Bells have demonstrated conclusively what ALTS has been saying all along --=
=20
those commitments were merely a ruse.=94
[SOURCE: Communications Daily, AUTHOR: Edie Herman, Patrick Ross]
(Not available online)
Additional coverage:
* NYTimes: http://www.nytimes.com/2004/08/25/business/25phone.html
* WashPost:=
http://www.washingtonpost.com/wp-dyn/articles/A30040-2004Aug24.html
* LATimes:=20
http://www.latimes.com/business/printedition/la-fi-phones25aug25,1,11892...
tory?coll=3Dla-headlines-pe-business
* WSJournal:=20
http://online.wsj.com/article/0,,SB109336921686799771,00.html?mod=3Dtoda...
s_marketplace
Also see:
* ALTS Statement on Bell Company Mandamus Petition
http://206.161.82.210/NewsPress/082404press%20statement%20Bell%20mandamu...
f
* USTA Statement on Writ of Mandamus Petition
For nearly a decade, we have waited for the FCC to put lawful rules in=20
place for the telecom industry. Unfortunately, after four attempts, missed=
=20
deadlines, instability and delay, we are again forced to ask the court to=20
intervene to bring certainty and clarity to the industry. The Commission=20
must put lawful, permanent rules in place by the end of this year so that=20
all providers can move forward on a competitive basis.
http://www.usta.org/news_releases.php?urh=3Dhome.news.nr2004_0824

PHONE INDUSTRY FACES UPHEAVAL AS WAYS OF CALLING CHANGING FAST
"Our industry and our business is going to change more in the next five=20
years than it has during the last 20 combined," says Duane Ackerman, the=20
chairman and chief executive of BellSouth. Across the nation, the business=
=20
models that have worked for decades for the Baby Bells are showing signs of=
=20
unraveling. The cable industry's push into the phone business and a torrent=
=20
of innovations such as Internet calling and advanced wireless technology=20
are threatening the foundations of the nation's $300 billion telecom=20
industry. The Bells have lost some 28 million local phone lines since the=20
end of 2000 -- a drop of more than 18%. This is the first time since the=20
Great Depression that phone companies have seen their lines decline. The=20
Bells are now losing 4% of their residential lines a year. The phone=20
companies are furiously trying to cut costs to stay ahead of declines in=20
revenue. The Bells are trying to add new kinds of revenue by teaming up=20
with satellite television companies, offering packages of phone, broadband=
=20
and TV service. But their basic business still is selling a high-priced=20
commodity in a market that is now highly competitive.
[SOURCE: Wall Street Journal, AUTHOR: Ken Brown ken.brown( at )wsj.com and Almar=
=20
Latour almar.latour( at )wsj.com]
http://online.wsj.com/article/0,,SB109338806323400200,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

VERIZON BLAMES FEDERAL RULES FOR BROADBAND HOLDUP
Speaking at the Progress & Freedom Foundation Aspen Summit, Lawrence=20
Babbio, phone giant Verizon's vice chairman and president, said FCC rules=20
are preventing the company from rolling out a high-speed fiber network to=20
homes in its home region. At issue is the interaction between the 1996=20
Telecommunications Act and a dense series of FCC decisions. If Verizon=20
spends billions of dollars to run fiber to homes in the northeast United=20
States, it could be forced to make those fiber links available to rivals at=
=20
below its own cost--a money-losing prospect that is preventing the company=
=20
from offering the service. The FCC already has voted 3-2, with the pair of=
=20
Democrats objecting, to immunize fiber from many regulatory burdens levied=
=20
by one section of the Telecom Act. But because of a regulatory twist,=20
another section is giving Verizon headaches--and the FCC has not acted to=20
clear things up. "While the FCC did agree to not apply the unbundling=20
regulations to new fiber in a decision last summer under one section of the=
=20
communications act, perhaps the new fiber nevertheless would have to be=20
unbundled under a different section of the communications act," said=20
Randolph May, a senior fellow at the Progress & Freedom Foundation. "In=20
effect, one positive decision was partially negated by the lack of a clear=
=20
decision on the application of another section."
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Verizon+blames+federal+rules+for+broadband+holdup/21...
034_3-5322874.html?tag=3Dnefd.hed

FCC CHIEF CAN TAKE A BOW FOR WORK IN WIRELESS ARENA
[Commentary] Under Chairman Michael Powell, the FCC has been more an ally=20
than enemy for people who want to expand the use of wireless technologies=20
in a world still dominated by wired lines. It has pushed the use of the=20
unlicensed part of the airwaves -- that's where WiFi resides -- and is=20
encouraging more creativity in the licensed part of the airwaves. After=20
looking at some of Powell's successes and shortcomings, Gillmor concludes:=
=20
"Powell wants to see more [wireless] experiments, to help create conditions=
=20
where entrepreneurs can turn conventional wisdom on its head. His goal as a=
=20
regulator, he says, has been to unshackle their creativity -- 'and let them=
=20
run.'''
[SOURCE: San Jose Mercury News, AUTHOR:Dan Gillmor]
http://www.mercurynews.com/mld/mercurynews/business/technology/9489638.htm

QUICKLY

NIELSEN REVISES RATINGS POINT AS TV HOUSEHOLDS GROW
Nielsen Media Research announced Tuesday that the total number of=20
television households in the United States has grown to 109.6 million, an=20
increase of 1.2 million television households from the 2003-2004 season.
[SOURCE: TVWeek, AUTHOR: Christopher Lisotta]
http://www.tvweek.com/news.cms?newsId=3D6170

COURT: COMCAST CAN'T CHALLENGE PEG REQUIREMENTS
In a case is being closely watched by local regulators, U.S. District=20
Magistrate Judge Richard Seeborg dismissed a challenge to local PEG-access=
=20
(public, educational and government) requirements by Comcast against San=20
Jose (CA). Comcast claims the requirements are onerous, but the judge ruled=
=20
that the claim is speculative and that the company must wait for those=20
franchise demands to actually be formalized by a city before Comcast can=20
challenge them in court. Local officials around the country see the action=
=20
as a major salvo by Comcast to eliminate PEG and institutional-network=20
requirements from future renewals. Officials believe the cable company=20
wants to reclaim the channels for profitable advanced services while=20
relegating local programming to the video-on-demand queue.
[SOURCE: Multichannel News, AUTHOR: Linda Haugsted]
http://www.multichannel.com/article/CA447491?display=3DBreaking+News
(requires subscription)

THE UNOFFICIAL MEDIA GUIDE TO THE REPUBLICAN NATIONAL CONVENTION
MediaChannel.org and Media for Democracy have released the "Unofficial=20
Media Guide" =AD a resource for journalists seeking a detour from the=
tightly=20
scripted rhetoric at Madison Square Garden next week. The Media Guide list=
=20
hundreds of sources and experts available to reporters seeking to cover=20
events occurring throughout New York's five boroughs. The guide includes:=20
New York experts, ready to talk on the record; coordinates for the protest=
=20
groups active citywide; the lowdown on political bloggers and alternative=20
news outlets; and the big media backstory.
Find link to the guide at the URL below.
[SOURCE: MediaChannel.org Press Release]
http://www.mediafordemocracy.us/mfd/rncguide.html

PUBLIC KNOWLEDGE URGES SUPPORT FOR ALTERNATIVE COPYRIGHT LEGISLATION
Gigi B. Sohn, president and co-founder of Public Knowledge, said she hopes=
=20
the Senate Judiciary Committee will give serious consideration to a=20
proposed alternative to the so-called =93Induce=94 legislation being=
considered=20
by the panel. =93We still doubt the need for new legislation, but the draft=
=20
legislation comes closest to giving the senators what they have said they=20
want -- a law targeting those who =91induce=92 infringement,=94 Sohn said.=
=93We=20
are pleased that so many other groups are with us on the need for an=20
alternative approach,=94 Sohn said. The draft language focuses more tightly=
=20
on those who engage in =93indiscriminate, mass infringing=94 than does the=
=20
existing legislation, S-2560. That bill, which was strongly criticized by=
=20
most of the witnesses at a July 22 hearing, is sufficiently vague and=20
overbroad that devices like the iPod might be judged to be illegal=20
=93inducement.=94 The new proposal: 1) would impose liability on those who=
=20
actively distribute in commerce a computer program or other tool that is=20
specifically designed to cause or enable infringement; provides appropriate=
=20
exemptions from for ISPs, investors, credit card companies and others if=20
their provision of routine services is used to facilitate infringement; 3)=
=20
allows for recovery of full costs, including reasonable attorney=92s fees,=
by=20
the prevailing party and otherwise discourages frivolous litigation; and 4)=
=20
codifies the Supreme Court=92s Betamax decision, confirming that a person or=
=20
company may--without fear of liability--manufacture or distribute a=20
hardware or software product that is capable of commercially significant=20
non-infringing uses.
[SOURCE: Public Knowledge Press Release]
(http://www.publicknowledge.org/)

INTERNET FILE SHARING: THE EVIDENCE SO FAR AND WHAT IT MEANS FOR THE FUTURE
Advocates of file sharing argue passionately that the practice has not=20
harmed album sales, and opponents argue with equal vehemence that it has.=20
This paper provides a brief discussion of these issues and explains why the=
=20
music industry's long-term viability is endangered by peer-to-peer file=20
sharing. The author concludes, "Making copyrighted material instantly=20
available to the world without the owner's permission is stealing. The=20
challenge for policymakers is to curtail this theft of intellectual=20
property without limiting legitimate activity or chilling technological=20
innovation through regulation."
[SOURCE: Heritage Foundation, AUTHOR: Norbert J. Michel]
http://www.heritage.org/Research/InternetandTechnology/bg1790.cfm

DOZENS CHARGED IN CRACKDOWN ON SPAM AND SCAMS
Federal and state law enforcement agencies have quietly arrested or charged=
=20
dozens of people with crimes related to junk e-mail, identity theft and=20
other online scams in recent weeks. Federal authorities have stepped up=20
their efforts to crack down on junk e-mail messages, or spam, since=20
Congress passed a law last December criminalizing fraudulent and deceptive=
=20
e-mail practices. The law subjects spammers to fines and jail terms of up=20
to five years.
[SOURCE: New York Times, AUTHOR: Saul Hansell]
http://www.nytimes.com/2004/08/25/technology/25spam.html
(requires registration)
--------------------------------------------------------------
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

TELECOM
FCC Releases Interim Phone Competition Rules
Nextel Noncommittal in First Meeting on Rebanding Order
The Call Is Cheap. The Wiretap Is Extra.

TELEVISION
FCC to Set Kids' DTV Quota
FCC=92s Crammed Menu
Brand Me, Baby!
NBC Universal and Paxson: An Odd Dance to a Divorce

RADIO
NAB Fights Radio-Reg Changes
Advertising: A Radio Challenge to Arbitron

INTERNET
Stopping Spam at the Source
SLD Temporarily Suspends Issuance of Funding Commitment Decision Letters

POLICYMAKERS
On Shaky Ground

TELECOM

FCC RELEASES INTERIM PHONE COMPETITION RULES
On Friday afternoon, the FCC released a Report & Order on interim phone=20
competition rules that aim to assure continuity until the FCC acts on=20
permanent rules later this year. Telephone companies that provide local=20
calling by renting other carriers' equipment have received a six-month=20
extension on discounted leasing rates while regulators work on new=20
competition rules. After the period ends, local phone companies will be=20
able to raise prices for existing customers "moderately," or as much as=20
15%. Commissioners Adelstein and Copps dissented from the rules; Copps said=
=20
he =93strongly=94 dissented because he thought =93the current Commission is=
on=20
track to butcher the pro-competitive vision of the 1996 [Telecom] Act.=94 He=
=20
said, =93The majority characterizes this effort as a comprehensive plan to=
=20
stabilize the market. The truth is just the opposite. In exchange for a=20
standstill today, they commit to price increases tomorrow.=94 Commissioner=
=20
Adelstein called the order a continuation of "the =91one step forward, two=
=20
steps back=92 saga of the local competition provisions of the [Telecom=
Act].=94=20
CompTel/Ascent (see=20
http://www.comptelascent.org/news/recent-news/082004.html) CEO Russell=20
Frisby said, =93While the process that has led to this situation is=20
regrettable, we are gratified that the FCC has acknowledged the critical=20
need to keep existing arrangements in place while permanent rules are=20
drafted.=94 He said the 6-month freeze =93will provide some stability =97 at=
=20
least in the short-term =97 and give carriers additional time to evaluate=20
their on-going business plans.=94
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)
SOURCE: New York Times, AUTHOR: Bloomberg News]
http://www.nytimes.com/2004/08/23/business/23fcc.html
(requires registration)
See also:
WSJ:=20
http://online.wsj.com/article/0,,SB109303734061497434,00.html?mod=3Dtoda...
s_marketplace
Order: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-179A1.doc
Statements from Commissioners
* Powell: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-179A2.doc
* Abernathy:=
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-179A3.doc
* Copps: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-179A4.doc
* Adelstein:=
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-179A5.doc

NEXTEL NONCOMMITTAL IN FIRST MEETING ON REBANDING ORDER
Nextel is beginning to react to the plan the FCC adopted to facilitate=20
moving the carrier onto a different spectrum band so it will not interfere=
=20
with public safety officials. Nextel held a conference call last week with=
=20
public safety officials, at which it made clear it has real reservations=20
about the order as released. Nextel apparently indicated some of the issues=
=20
could be deal breakers, though public safety sources said they remain=20
hopeful all can be addressed. On many of Nextel's concerns, public safety=20
officials agree with the carrier while on others public safety had no=20
interests at stake.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)

THE CALL IS CHEAP. THE WIRETAP IS EXTRA.
Earlier this month, the FCC voted unanimously to move forward with rules=20
that would compel Internet telephone service providers to make it possible=
=20
for law enforcement agencies to eavesdrop on Internet calls. But developing=
=20
systems to wiretap calls that travel over high-speed data networks - a task=
=20
that the companies are being asked to pay for - has caused executives and=20
some lawmakers to worry that helping the police may stifle innovation and=20
force the budding industry to alter its services. That requirement, they=20
say, could undermine some of the reasons Internet phones are starting to=20
become popular: lower cost and more flexible features. "All the costs=20
carriers incur are ultimately going to be passed on to the consumer," said=
=20
Tom Kershaw, vice president for voice-over-Internet services at VeriSign,=20
which provides surveillance support for Internet phone companies.
[SOURCE: New York Times, AUTHOR:Ken Belson]
http://www.nytimes.com/2004/08/23/technology/23wiretap.html
(requires registration)

TELEVISION

FCC TO SET KIDS' DTV QUOTA
The FCC is preparing a Report & Order on children's television rules for=20
digital broadcasters. Sources say that the Commission will require an=20
additional three hours of educational fare for each new channel that a=20
digital broadcaster multicasts. The programming will not have to be spread=
=20
out among all the multicast channels, however. A station could satisfy the=
=20
requirement, for instance, by putting all the required shows on a kids'=
channel
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA446410?display=3DBreaking+News
(requires subscription)

FCC'S CRAMMED MENU
The FCC has received a variety of opinions on a la carte pricing options=20
for cable TV programming. Programmers say a la carte would reduce their=20
audiences, decrease income from advertising, increase licensing fees and=20
overall cable bills and therefore reducing demand for a wide range of=20
programming. Cable operators say a la carte would mean an overhaul of=20
billing and customer service as well as the need for more set-top boxes --=
=20
resulting in higher cable bills. Broadcasters seem to like a la carte -- as=
=20
long as it does not threaten must carry provisions for their signals. Some=
=20
have told the FCC that the pros and cons of a la carte were too theoretical=
=20
for the agency to form valid conclusion. The Broadband Service Providers =97=
=20
which represent cable overbuilders Knology Inc., Everest Connections, and=20
Gemini Networks =97 volunteered to conduct a multiyear a la carte experiment=
=20
to determine whose theory was correct.
[SOURCE: Multichannel News, AUTHOR:Ted Hearn]
http://www.multichannel.com/article/CA446640?display=3DPolicy
(requires subscription)

BRAND ME, BABY!
B&C's cover story this week is an article on product placement in TV shows.=
=20
"It's part of the commercial takeover of every nook and cranny of our lives=
=20
and culture," says Commercial Alert Executive Director Gary Ruskin. The=20
watchdog group filed complaints last year with the Federal Trade Commission=
=20
and the Federal Communications Commission, seeking clearer viewer=20
notification of brand embedding. Commercial Alert believes viewers should=20
see an on-screen alert when placements appear during programming. Having=20
successfully stopped search engines from letting advertisers pretend their=
=20
pitches were search results, Mr. Ruskin says, "We think we're on strong=20
legal ground." He expects a ruling by the end of the year. Placements are a=
=20
remedy to advertising clutter on TV and to viewers' use of TiVos to skip=20
commercials.
[SOURCE: Broadcasting&Cable, AUTHOR: Mark Lasswell]
http://www.broadcastingcable.com/article/CA446675?display=3DTop+of+the+W...
referral=3DSUPP
(requires subscription)

NBC UNIVERSAL AND PAXSON: AN ODD DANCE TO A DIVORCE
NBC invested $415 million to purchase a 32% stake in Paxson which owns 61=20
broadcast TV stations and part-time network PAX-TV. NBC once thought of=20
buying the rest of Paxson, but now wants out of the entire deal and is=20
looking to redeem its investment. NBC Universal sued Paxson last week over=
=20
a dispute about how to calculate dividends on preferred Paxson stock NBC=20
owns. But even as the two sides argue, they find themselves entwined with=20
each other more than ever, in everything from promotions to advertising=20
sales to program development.
SOURCE: New York Times, AUTHOR: ]
http://www.nytimes.com/2004/08/23/business/media/23pax.html
(requires registration)

RADIO

NAB FIGHTS RADIO-REG CHANGES
The National Association of Broadcasters is asking federal judges to=20
continue to block the tighter limits on local radio-station ownership that=
=20
the FCC approved last summer as part of its controversial and generally=20
deregulatory rewrite of ownership rules. The radio ownership rules change=20
was stayed by the Philadelphia court that ordered the FCC to rewrite its=20
ownership rules in June. NAB and other broadcasters have appealed the radio=
=20
portion of the ruling. Permitting the FCC to implement the change while the=
=20
rewrite is under way "risks creating needless chaos and disruption in the=20
industry," NAB wrote in a court filing.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA446667?display=3DBreaking+News
(requires subscription)

ADVERTISING: A RADIO CHALLENGE TO ARBITRON
Advertisers may spend more than $20 billion on radio this year which makes=
=20
some people very interested in knowing how many people are listening to=20
what on the radio. Navigauge will unveil a new radio ratings system today=20
that will measure radio audiences in cars, combining global positioning=20
technology and continuous tracking of the radio dial to challenge Arbitron,=
=20
the dominant radio ratings provider.Navigauge executives are betting that=20
shortcomings in Arbitron's system will provide an opportunity for them.=20
"For a long time, the radio industry itself has lamented the fact that it=20
gets a large percentage of consumers' media consumption but a=20
disproportionately small share of advertising revenue," said Tim Cobb,=20
chief executive at Navigauge. "That's based on the fact that they cannot=20
articulate to advertisers the value that they are delivering."
SOURCE: New York Times, AUTHOR: Nat Ives]
http://www.nytimes.com/2004/08/23/business/media/23adco.html
(requires registration)

INTERNET

STOPPING SPAM AT THE SOURCE
This month, the Internet Engineering Task Force (IETF) reviewed several=20
e-mail authentication proposals, agreeing to fast-track a submission from=20
Microsoft known as Sender ID. The group also reviewed submissions for=20
signature-based authentication from companies such as Cisco Systems and=20
Yahoo and recommended the authors combine and resubmit those proposals=20
together. A timeline has yet to be set for reviewing and approving these=20
proposals. But the attention on e-mail authentication standards is a=20
welcome sign of progress, according to antispam experts, who said the=20
technology promises what current antispam solutions can't yet offer--the=20
chance to drive up costs for spammers. The stakes in the antispam movement=
=20
have never been higher as "phishing" attacks aimed at stealing a person's=20
information for financial gain are on the rise. The volume of spam is also=
=20
increasing, and it's taking its toll on networks by eating up valuable=20
bandwidth, mail server processing capacity, and storage. Spam accounts for=
=20
more than 65 percent of all e-mail processed by mail servers.
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
http://news.com.com/Stopping+spam+at+the+source/2100-1032_3-5316964.html...
=3Dnefd.lede

SLD TEMPORARILY SUSPENDS ISSUANCE OF FUNDING COMMITMENT DECISION LETTERS
The Universal Service Administrative Company (USAC) has been directed by=20
the FCC to move to government accounting standards by October 1, 2004, and=
=20
this has raised potential budget authority issues that may impact USAC. As=
=20
a result, the Schools and Libraries Division (SLD) of USAC has not issued=20
Funding Commitment Decision Letters (FCDLs) for any Funding Year since=20
August 3, 2004, and will be temporarily suspending further issuance of such=
=20
letters. USAC is working with the FCC to resolve these issues and, once=20
that happens, SLD will resume issuing commitment letters. In the meantime,=
=20
SLD is continuing to review applications so that, when the matter is=20
resolved, it will be in a position to issue FCDLs. USAC expects the issue=20
to be resolved in the near future.
[SOURCE: Universal Service Administrative Company]
http://www.sl.universalservice.org/whatsnew/2004/082004.asp#081904

POLICYMAKERS

ON SHAKY GROUND
The FCC may soon have just four commissioners as the term of Jonathan=20
Adelstein is set to expire when the current Congress ends its session.=20
Senate Democratic leader Sen Tom Daschle (D-SD), an Adelstein mentor,=20
submitted Adelstein's name for renomination to President Bush in February,=
=20
but the White House hasn't commented publicly on its plans for the=20
commissioner. The White House has negotiated with Sen Daschle to package=20
Adelstein's nomination with several other high-level posts, including the=20
President's picks for the Federal Trade Commission. FCC Chairman Michael=20
Powell would like to adopt a plan to make TV stations go all-digital by=20
2009, establish public interest obligations for digital broadcasters and=20
finally settle TV stations' cable carriage rights in the digital world.=20
It's ironic that the departure of a frequent critic could hurt Chairman=20
Powell. But the Chairman has never been able to count on his two fellow=20
Republicans, particularly Kevin Martin, for the votes needed to push any=20
particular proceeding. The presence of an extra body, even a Democratic=20
one, gives Powell more opportunity to bargain for votes. "A four-member=20
commission is a formula for stalemate, even with a three-to-one Republican=
=20
majority," says Andrew Schwartzman, president of Media Access Project. "Any=
=20
one person is potentially the swing vote. It's so tempting to hold out your=
=20
vote in return for something you want."
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA446660?display=3DWashington
(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

BROADCASTING
Public Interest Update on Children, Closed Captioning Rules
Study Slams Broadcasters Election Coverage
Commission to OK Jackson Fine

INTERNET
Study: Broadband Leaps Past Dial-up
When Gadgets Get in the Way

INTELLECTUAL PROPERTY
Hey, You Need a License to Watch That!
Publishing Industry Tackles Digital Rights

BROADCASTING

PUBLIC INTEREST UPDATE ON CHILDREN, CLOSED CAPTIONING RULES
After four years of consideration, the FCC is expected to adopt rules
concerning how digital television broadcasters should serve children at the
Commission's open meeting in September 9. Patti Miller, Director of
Children's Now's Children & the Media Program, is looking for additional
children's programming since digital broadcasters will be able to multicast
several channels at once. Analog broadcasters are currently required to air
three hours/week of children's educational or informational programing.
Children Now wants the FCC to forbid TV stations from embedding Internet
links in online interactive content that could lead children to commercial
ads. Ms. Miller says the FCC should also ensure that parents get more
information about programming in a digital age.
Meanwhile, Telecommunications for the Deaf, the National Association of the
Deaf and others have filed a petition with the FCC asking for a rulemaking
to add enforcement standards for its closed captioning rules. The groups
say there's a lack of access to captions on many programming sources and
the groups suggest the FCC should set captioning quality standards for
completeness, accuracy, readability and synchronicity. Among the
enforcement mechanisms the petition suggests are a standardized complaint
form, fines and penalties, and continuous FCC monitoring of captioning.
[SOURCE: Communications Daily]
(Not available online)

STUDY SLAMS BROADCASTERS ELECTION COVERAGE
The Committee for the Study of the American Electorate has released a study
of 10 states that it said shows that a "substantial majority" of Senate,
House and gubernatorial debates in 2002 were not televised and that a
majority of stations with debates in their market chose not to air them.
According to the study, 30 of 50 gubernatorial debates were televised,
eight of 17 Senatorial debates and 36 of 107 House debates. When it came to
multiple debates, commercial broadcasters actually aired more than double
those of PBS stations, with 17 network affiliates airing more than one
debate to only seven PBS stations.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA445585?display=Breaking+News
(requires subscription)

COMMISSION TO OK JACKSON FINE
Let's get ready to rumble over indecency. The FCC is expected to announce a
fine against Viacom for the Super Bowl halftime show and earlier this
summer Viacom Co-President Les Moonves vowed to fight the FCC, saying any
fine would be "patently ridiculous." Many First Amendment lawyers are
hoping Moonves keeps his pledge to fight in court because they believe the
case would lead to a Supreme Court review of all the FCC's indecency
restrictions. They think such a review would likely result in looser, not
tighter, restrictions.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA446096?display=Breaking+News
(requires subscription)

INTERNET

STUDY: BROADBAND LEAPS PAST DIAL-UP
As of July, there were 63 million people using broadband at home, making up
51% of the total U.S. Internet population, according to market research
company Nielsen/NetRatings. That's a 47% jump from last year, when
broadband totaled only 38% of all U.S. online households. Broadband
penetration is especially high among consumers under the age of 20,
approaching 60%.
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu]
http://news.com.com/Study%3A+Broadband+leaps+past+dial-up/2100-1034_3-53...
See also
* Reuters: U.S. Broadband Growth Slows - Analyst
http://www.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=599...

WHEN GADGETS GET IN THE WAY
Eighty-percent of public schools have high-speed Internet access in at
least one classroom. And among colleges, 69% have classroom Internet access
and 70% have wireless networks. Good, right? Teachers are fighting new
battles, however, with technology-distracted students. All agree that the
best weapon against attention deficit is the same one that worked before
the dawn of computers: strong teaching. In this Circuits feature, see five
examples of teachers who are fighting fire with... more technology.
[SOURCE: New York Times, AUTHOR: Lisa Guernsey]
http://www.nytimes.com/2004/08/19/technology/circuits/19teac.html
(requires registration)

INTELLECTUAL PROPERTY

HEY, YOU NEED A LICENSE TO WATCH THAT!
You better not pout, you better not watch Canadian satellite TV. Why?
Because Santa and the FCC are coming to town. US laws prevents American
households from subscribing to foreign satellite providers unless they have
a special license to do so. Getting around the law takes specially tuned
dishes and receivers (available for $100 to $400 each from numerous
Internet suppliers) and a valid Canadian address available from "address
brokers" on the Web (($25 to $50 a year). The payoff, subscribers say, is a
much more balanced perspective on the world, without all the flag-waving.
[SOURCE: Los Angeles Times, AUTHOR:David Colker]
http://www.latimes.com/business/printedition/la-fi-canada19aug19,1,65861...
(requires registration)

PUBLISHING INDUSTRY TACKLES DIGITAL RIGHTS
At a trade show this week, the publishing industry is discussing digital
rights management (DRM) of electronic content. Creative Commons, a
nonprofit group, is promoting a "some rights reserved" approach to DRM. Its
approach would embed each document with metadata that tells the consumers
what level of protection the author seeks. Mike Linksvayer, chief
technology officer for Creative Commons, said the approach has several
advantages, including the ability to present multiple views of the rights
documentation--a wordy legal version, a machine-readable version and a
"regular humans" version minus the legalese. "One of the benefits...is that
people actually start to understand the intentions the more they see the
metadata in the document," he said.
[SOURCE: C-Net|News.com, AUTHOR: David Becker]
http://news.com.com/Publishing+industry+tackles+digital+rights/2100-1025...
--------------------------------------------------------------
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

Headlines will next be published THURSDAY, AUGUST 19. See you then.

SPECTRUM & PUBLIC SAFETY
DTV Transition Next Big Public Safety Focus
Wireless Group Changes Stance On Spectrum Reshuffling

MEDIA POLICY
Congressional Economists Tackle Copyright Issues
Censoring Violence in Media

QUICKLY
USAC Anticipates Rolling Over $180 Million for the 2005 Funding Year
FCC Regulatory Fees Lag Behind Sub Losses
Goodbye, Booknotes

SPECTRUM & PUBLIC SAFETY

DTV TRANSITION NEXT BIG PUBLIC SAFETY FOCUS
With 700MHz spectrum on the line for public safety, the transition to=20
digital-only broadcasting in the US will be "the primary policy imperative"=
=20
of the FCC over the
next 6 months, said FCC Chief of Staff Bryan Tramont recently. He added=20
that Chairman Michael Powell is eager to establish a date certain for the=20
transition. Over the next few months, the Commission will be addressing the=
=20
public interest obligations of digital TV broadcasters, followed =93very=20
quickly=94 by an order clarifying what constitutes the prerequisite DTV=20
market penetration of 85% allowing broadcasters to turn off analog signals.
Former NTIA Director Greg Rohde, now Executive Director of the E911=20
Institute, said Congress may have to pass legislation to guarantee that the=
=20
digital TV transition will occur on a timely basis. Mr. Rohde said, given=20
the size of the stakes for broadcasters and public safety, FCC action may=20
not be enough. he predicted telecommunications will be a hot topic in the=20
next Congress especially as it relates to the 9/11 Commission report.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)

WIRELESS GROUP CHANGES STANCE ON SPECTRUM RESHUFFLING
The Cellular Telecommunications and Internet Association has changed its=20
position and is now supporting the "consensus plan" to reshuffle the=20
800-megahertz band of spectrum adopted by the FCC last month. CTIA head=20
Steve Largent said, "Now that the commission has announced its decision in=
=20
the 800-MHz proceeding, it's time for all of us to focus on working=20
together to take the steps necessary to remedy public-safety interference=20
as quickly and efficiently as possible." CTIA had coordinated opposition to=
=20
the plan, arguing that it would unjustly enrich Nextel by granting it 10=20
megahertz of contiguous spectrum at 1.9 gigahertz in exchange for its=20
scattered holdings around 800 megahertz.
[SOURCE: National Journal's Technology Daily, AUTHOR: Drew Clark]
http://nationaljournal.com/pubs/techdaily/pmedition/tp040810.htm

MEDIA POLICY

CONGRESSIONAL ECONOMISTS TACKLE COPYRIGHT ISSUES
The Congressional Budget Office released a new study on digital copyright=20
issues Tuesday; it could provide a strong working text for legislators, as=
=20
they face growing calls from both copyright holders and consumer groups to=
=20
reshape laws that have been severely tested by the growth of the Net and=20
digital copying technologies. The paper outlines the likely economic=20
effects of several ideas that have been proposed in Congress or by=20
copyright experts, without advocating support for any of them. The paper=20
was not requested by a member of Congress.
[SOURCE: C-Net|News.com, AUTHOR: John Borland]
http://news.com.com/Congressional+economists+tackle+copyright+issues/210...
28_3-5304486.html?tag=3Dnefd.top
See the full report, Copyright Issues in Digital Media
http://www.cbo.gov/showdoc.cfm?index=3D5738&sequence=3D0

CENSORING VIOLENCE IN MEDIA
Responding to a request from Congress, the FCC will investigate violence on=
=20
TV and its impact on children. Thierer l-o-v-e-s the idea: "The "for the=20
children" mantra has quickly become the universal pretext for legislative=20
attempts to censor TV, radio, cable, video games and the Internet.=20
Apparently, if you have the best interests of children in mind, you can=20
dispense with the First Amendment and let the government censor whatever it=
=20
pleases." Instead of government intervention, Thierer asks, "What ever=20
happened to personal and parental responsibility in this country?" Isn't=20
this what those "silly" V-chips are for, he asks. Parents need to act=20
responsibly, Thierer writes, and exercise their private right=97indeed,=20
responsibility=97to censor their children's eyes and ears from certain=20
things. It's become increasingly evident, however, that a lot of parents=20
have just gotten lazy about carrying out this difficult job. While I can=20
appreciate the hassle of constantly trying to monitor a child's viewing and=
=20
listening habits, that's no excuse for throwing in the towel and calling in=
=20
the government to censor what the rest of the world has access to.
[SOURCE: Cato Institute, AUTHOR: Adam Thierer]
http://www.cato.org/tech/tk/040810-tk.html

QUICKLY

USAC ANTICIPATES ROLLING OVER $180 MILLION FOR THE 2005 FUNDING YEAR
The Universal Service Administrative Company notified the FCC August 2 that=
=20
it anticipates it will have an additional $180 million worth of E-rate=20
funding available to roll over to support applications in the 2005 funding=
=20
year. USAC had previously notified the FCC that it would have an additional=
=20
$150 million in unused funds available to support applications from 2004=20
and $420 million available to support applications from 2003.
[SOURCE: Funds for Learning]
http://www.fundsforlearning.com/cgi-bin/NewsList.cgi?cat=3DNews&rec=3D55...
t=3DE-rate

FCC REGULATORY FEES LAG BEHIND SUB LOSSES
Starting Tuesday, cable companies have until August 19 to pay 70 cents per=
=20
subscriber to the FCC. In the aggregate, the Commission expects to receive=
=20
$45.5 million from the industry. But the FCC=92s financial projections are=
=20
based on cable-subscriber totals as of December 31, 2003 and several Wall=20
Street analysts have noted that cable operators have been losing=20
subscribers this year -- a net loss of about 250,000.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA444241?display=3DBreaking+News
(requires subscription)

GOODBYE, BOOKNOTES
After 15 years and interviews with nearly 800 authors, C-SPAN founder and=20
CEO Brian Lamb has decided to end Booknotes, the Sunday-evening program=20
devoted to authors and their books on history and politics.
[SOURCE: Multichannel News]
http://www.multichannel.com/article/CA444226?display=3DBreaking+News
(requires subscription)
WashPost:=
http://www.washingtonpost.com/wp-dyn/articles/A55337-2004Aug10.html
(requires registration)
--------------------------------------------------------------
Thanks for the break... see you next week.
--------------------------------------------------------------
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.
--------------------------------------------------------------