November 2004

Benton's Communications-related Headlines for 11/19/04

NARUC and NASUCA are meeting this week in Nashville. For these and other
upcoming media policy events, see http://www.benton.org/calendar.htm

TODAY'S QUESTION: Is "Saving Private Ryan" fit for primetime?
Communications Daily reports that the FCC received a number of complaints
about the broadcast last week.

WASHINGTON AGENDA
USF Funding Controversy Likely a Top 'Lame-Duck' Agenda
Adelstein Likely to Get New Term
CEA, NAB Look for Hard Date for Completing DTV Transition
Will Madison Avenue Be Bushwhacked?
VoIP Backers Should Celebrate Bush Win

MEDIA
Big Media Getting Bigger
Meredith Creates Duopoly-Lite
Web Publishers Move Toward Standardizing Ad-Viewership Data

WASHINGTON AGENDA

USF FUNDING CONTROVERSY LIKELY A TOP 'LAME-DUCK' AGENDA
A number of communications-related issues could be addressed as Congress
returns to town this week. Senate Appropriations Chairman Stevens
(R-Alaska) is considering taking action on the accounting problems with the
Universal Service Fund that have halted E-rate funding and could jeopardize
subsidies for rural telephone companies. A quick legislative fix may be a
temporary exemption of accounting regulations on the fund, so the new
Congress can study and act on the issue next year. Other items that may get
attention are: renomination of FCC Commissioner Adelstein (see story
below), efforts to create a spectrum relocation trust fund (HR-1320), E-911
legislation, the Satellite Home Viewer Improvement Act, the Internet tax
moratorium, and broadcast decency. Apparently, there's little White House
support for an overhaul of the intelligence system this session, so
adoption of the 9/11 Commission's recommendations -- including speeding the
transition to digital-only TV broadcasting (see story below) -- seems
unlikely. This lame-duck Congressional session is not expected to last more
than two weeks.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

ADELSTEIN LIKELY TO GET NEW TERM
Unpack those bags, FCC Commissioner Jonathan Adelstein, you may be an
unexpected winner in the 2004 election. Today, President Bush is expected
to renominate Adelstein and ask Congress to include his confirmation in a
package of 85 judicial and other federal posts that lawmakers are expected
to approve by the end of the week. If that happens, Commissioner Adelstein
will have a new five-year term. There's also conflicting rumors about
another FCC Commissioner serving past an expired term. Sen John McCain
supposedly pushed to replace Commissioner Kathleen Abernathy with Commerce
Committee aide Bill Bailey, but FCC Chairman Powell and Abernathy say the
White House has not informed them of such a switch.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA480196.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

CEA, NAB LOOK FOR HARD DATE FOR COMPLETING DTV TRANSITION
There's apparently growing support for setting a hard date for completing
the transition to digital-only TV broadcasting. Broadcasters apparently
favor 2009 as the date, if cable systems transmit broadcasters' full
digital signals by the end of the DTV transition and either make analog
signals available to households to households that don't adopt digital TVs.
Digital TV set makers also think it is important to set such a deadline
once and for all as a necessary step for achieving economies of scale that
would make future DTV sets affordable for the masses.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins, Paul Gluckman]
(Not available online)

WILL MADISON AVENUE BE BUSHWACKED?
What will the second term for President Bush mean for advertisers? They
might be a little nervous. Broadcast indecency and violence are likely to
get a lot of attention and a moral groundswell could have a chilling effect
on sponsorship of content for the gay and lesbian community. Many also
believe that the Bush Administration's stance on media ownership will
negatively impact Madison Avenue. Advertisers believe mega-mergers dilute
program diversity. The concentration of ownership stifles the variety of
media content, which, in turn, limits the ability of marketers to
efficiently reach targeted audiences that favor niche programming. There
may also be a crackdown on advertising aimed at children.
[SOURCE: Broadcasting&Cable, AUTHOR: Joe Mandese]
http://www.broadcastingcable.com/article/CA480207.html?display=Advertisi...
(free access for Benton's Headlines subscribers)
For concerns about marketing to children see:
How marketers hook kids, and why we should worry
[SOURCE: USAToday, AUTHOR:Lyn Millner ]
http://www.usatoday.com/printedition/money/20041115/born.art.htm

VOIP BACKERS SHOULD CELEBRATE BUSH WIN
[Commentary] The FCC's vote last week on Internet telephone service "nicely
captures the long-running discord between the Democrats' regulatory
fetishism and the Republicans' regulatory restraint." The Commission's
Republican majority, led by Chairman Michael Powell, decided "VoIP must be
freed from the clutches of busybody state utility commissioners." Democrats
decried the decision's erosion of the federal-state regulatory partnership
and the unanswered questions about issues like universal service. "The
Democrats on the commission simply have been more skeptical of markets, and
the Republicans have been more skeptical of regulation," says James
Gattuso, a fellow at the Heritage Foundation and a former deputy chief at
the FCC. "It's almost a classic situation of burden of proof: The
Republicans seem to be saying, 'Prove to us you need regulation,' and the
Democrats seem to be saying, 'Prove to us markets will work.'" McCullagh
ends: "But given today's political reality, Powell and his Republican
allies probably have done as much as they could to help nurture VoIP and
bring high-speed connections to Americans' homes. The two Democratic
commissioners have not."
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/VoIP+backers+should+celebrate+Bush+win/2010-1071-545...

MEDIA

BIG MEDIA GETTING BIGGER
Apparently the old adage "eat or be eaten" applies to Internet journalism,
too. At the fifth annual Online News Association meeting, the buzz was "Big
Media gets bigger." CBS MarketWatch was purchased by Dow Jones, a direct
competitor that has lagged, not led, the revolution to publish free news on
the Internet -- despite the potential to break news during market hours.
Now the most direct Internet competitors of the Dow Jones-MarketWatch
alliance include Street.com (a smaller Web-only outlet), Forbes, Fortune
and Business Week (all magazines) and Yahoo Finance (an aggregation site).
Sources at the conference said The Washington Post is close to acquiring
Slate, another Web pioneer of original Web content. Slate, which is owned
by Microsoft, focuses on political reporting, much like the Post does.
[SOURCE: C-Net|News.com, AUTHOR: Jeff Pelline]
http://news.com.com/Big+media+getting+bigger/2100-1024_3-5452023.html?ta...

MEREDITH CREATES DUOPOLY-LITE
It is great to how creative corporations can be to serve their commercial
interests. Although duopolies are not allowed under FCC rules in Kansas
City, Meredith Broadcasting has purchased from Sinclair the "nonlicense
assets" of WB affiliate KSMO for $26.8 million. The company already owns
the CBS affiliate there. Those assets comprise the building, tower and
staffers, however, B&C reports, that is more like a hefty upfront payment
than the actual value of those assets. Meredith will seek a failed-station
wavier from the FCC, which can allow otherwise impermissible duopolies if
it is to save a distressed station. It will pay $6.7 million for the
license -- probably far less than it is worth -- if FCC rules ultimately
permit it to own a duopoly in KC.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA480187.html?display=Breaking+...'&referral=SUPP
(free access for Benton's Headlines subscribers)
See also:
TVWeek
http://www.tvweek.com/news.cms?newsId=6717

WEB PUBLISHERS MOVE TOWARD STANDARDIZING AD-VIEWERSHIP DATA
The Internet is one of the few places where advertisers have relied on
publishers to tell them how widely ads are distributed, without third-party
confirmation making advertisers have been cautious about spending on the
medium. But now Web sites are agreeing to standardize the reporting of
ad-viewership numbers, also known as impressions, and for the first time
agreeing to have the numbers audited. Unlike other media, Internet
publishers don't have to rely on sampling. They can examine their Web logs
and see exactly how many times an ad was served to readers. Using the new
standards, they will use consistent methods for counting those readers
[SOURCE: Wall Street Journal, AUTHOR: Carl Bialik carl.bialik( at )wsj.com ]
http://online.wsj.com/article/0,,SB110048058975973783,00.html?mod=todays...
(requires subscription)
See also:
Ad Network Monitors Web Habits
Tacoda, an online marketing company, will announce today the creation of a
network of 60 Web sites that allow its members to display ads based on how
people surf through the network. Tacoda's service, called AudienceMatch,
will not know who those surfers are, just where they visit.
[SOURCE: New York Times, AUTHOR: Bob Tedeschi]
http://www.nytimes.com/2004/11/15/technology/15ecom.html
(requires registration)
--------------------------------------------------------------
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.
--------------------------------------------------------------

Benton's Communications-related Headlines for 11/12/04

Next week's events include CPB Board of Directors meeting, a hearing on=20
Universal Service, a conference on Voting Issues and Campaign Fiance=20
Reform, and a meeting of the FCC's Consumer Advisory Committee. For these=20
and other upcoming media policy events, see=
http://www.benton.org/calendar.htm

INDECENCY
'Saving Private Ryan': A New Casualty of the Indecency War
FCC Petition Would Muzzle Satellite Stern

MEDIA
How Dan Rather And Media's Kings Lost Their Crowns
The World According To Karmazin
Iraq Tells Media to Toe the Line

BROADBAND/TELECOM
Report: Powell OK with DSL/Phone Bundle
Martin: Cable Model Worth Emulating
Cable Lobby Tells Supreme Court: Forget About
the Broadband Needs of Cities
Proposed FCC Rules Would Cost Businesses $130 Billion
Iowa Communities Team to Install Own High-Speed Lines
After Long Peace, Wireless Operator Stirs Up Industry

QUICKLY
Digital Services Fund for Public Television
Coordination of Spectrum Policy
Tech-Savvy Schools Reclaim Millions
U.S. to Appeal WTO Decision On Web Gambling
Industry and Public Interest Groups Oppose Wiretap Design
Mandates for the Internet
Privacy Threats from a Banana Republic
Latest Conspiracy Theory -- Kerry Won -- Hits the Ether

INDECENCY

'SAVING PRIVATE RYAN': A NEW CASUALTY OF THE INDECENCY WAR
ABC stations owned by Cox Television, Citadel Communications, Belo Corp.,=20
Hearst-Argyle and Scripps Howard Broadcasting and others declined to air=20
the "Saving Private Ryan" saying they fear the FCC could fine them for=20
airing the film's scenes of extreme violence and intense adult language.=20
Among those preempting the World War II movie are stations in Dallas (the=20
country's seventh largest television market), Atlanta (No. 9), Tampa (No.=20
13), Phoenix (No. 15) and Orlando (No. 20). Ironically, most of them=20
already aired "Saving Private Ryan" when ABC ran it, unedited, to=20
commemorate Veterans Day in 2001 and 2002. According to Cox's Atlanta=20
station general manager, Greg Stone, the company asked ABC for permission=20
to edit the film or air it outside prime time but was turned down.=20
According to news reports, ABC's broadcast rights preclude any editing.
[SOURCE: Washington Post 11/11, AUTHOR: Lisa de Moraes]
http://www.washingtonpost.com/wp-dyn/articles/A41464-2004Nov10.html
(requires registration)
The decision by station owners not to air the Oscar-winning film is raising=
=20
the issue of the "chilling effect" of recent FCC indecency enforcement.=20
There's a good deal of coverage/reaction to the issue. See these links:
* Pre-Empting Private Ryan
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton & Allison Romano ]
http://www.broadcastingcable.com/article/CA479649?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* McCain Defends Private Ryan
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA479747?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* ABC Denies Permission to Redeploy Ryan
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA479931.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
* Some Stations Shelved =91Private Ryan' Amid FCC Fears
[SOURCE: USAToday, AUTHOR:Ann Oldenburg]
http://www.usatoday.com/printedition/news/20041112/1a_bottomstrip12.art.htm

FCC PETITION WOULD MUZZLE SATELLITE STERN
Howard Stern can run to satellite radio, but can he hide there from=20
indecency enforcement? California's Mount Wilson Broadcasters, owner of one=
=20
FM and two AMs, has filed a petition for rulemaking with the FCC arguing=20
that since indecency regulation applies to expression "by means of radio=20
communications," and satellite radio is radio communications, it should be=
=20
subject to the same content restrictions. The Supreme Court has already=20
ruled in the Playboy case that cable television, and arguably subscription=
=20
services in general, are not subject to indecency regulations, though=20
legislators and regulators, including FCC Chairman Michael Powell, have=20
suggested it may be time to rethink that distinction given the fact that=20
most people get their TV via cable.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA479745?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
At the end of June, Infinity and Howard Stern filed a $10 million=20
breach-of-contract suit against Clear Channel for dropping Mr. Stern's=20
radio show earlier in the year. In July, Clear Channel countersued for $3=20
million, alleging Mr. Stern broke his contract with the company by not=20
conforming to federal decency standards. Now that he's announced he will=20
jump to satellite radio, Infinity has withdrawn its financial support from=
=20
Mr. Stern's legal fight against Clear Channel, prompting Stern to seek an=20
early exit from his current contract. Stern brings in some $80 million=20
annually in advertising revenue and $50 million annually in cash flow to=20
Infinity.
http://online.wsj.com/article/0,,SB110022565839272316,00.html?mod=3Dtoda...
s_marketplace

MEDIA

HOW DAN RATHER AND MEDIA'S KINGS LOST THEIR CROWNS
[Commentary] The biggest losers in the 2004 election just might be Big=20
Media. The public is beginning to contest the decades-old authority of the=
=20
mainstream media. It is too bad this abdication has occurred just as=20
political opinions have become overheated by the kind of electronic=20
technology deployed in the 2004 election. We really could use some neutral=
=20
ground, a space one could enter without having to suspect that "what we=20
know" about X or Y was being manipulated. The problem with being spun day=20
after day by newspapers or newscasts is that it gets tiresome, no matter=20
your politics. You end up having to Google every subject in the news=20
(Guantanamo, gay marriage statutes, Tora Bora, the Patriot Act) to find out=
=20
what's been left out or buried at the bottom. The real winners here are the=
=20
politicians. Pig heaven for them. If much of the public (a margin large=20
enough to decide elections) believes it no longer has access to a settled=20
information baseline, an agreed-upon set of facts, then it's so much easier=
=20
for the pols, using this new arsenal of high-tech info firepower, to=20
manipulate a doubtful public and push it around with propaganda (they can=20
demographically target ads to the TV screens in health clubs). Henninger=20
offers this low-tech solution: Why don't we finally institute an American=20
version of the parliamentary question period common around the U.K.? If the=
=20
likes of Messrs. Rumsfeld, Ashcroft, Powell, Snow, Cheney and Bush had to=20
appear before the House in this tightly regulated question-and-answer=20
format, broadcast on C-Span, surely the public over time would acquire a=20
clearer sense of which ideas are competing for their support and vote.=20
Let's get to them, before they get to us.
[SOURCE: Wall Street Journal, AUTHOR: Dan Henninger henninger( at )wsj.com]
http://online.wsj.com/article/0,,SB110022312344272245,00.html?mod=3Dtoda...
s_opinion
(requires subscription)

THE WORLD ACCORDING TO KARMAZIN
Speaking at the National Association of Broadcasters European Radio Show,=20
former Viacom chief Mel Karmazin said the US radio industry needs more=20
ownership concentration, but there's no political support from either=20
Democrats or Republicans. Further radio consolidation would continue to=20
make radio attractive to investors, he said. "If radio is not going to be=20
today a big growing part of the companies that own it, then you will=20
probably see a cycle of companies selling. What excitement can there be in=
=20
owning 84 stations when there is no limit to the number of cable networks=20
you can own," Karmazin said. He suggested that in big urban markets such as=
=20
New York, which he said had some 100 radio stations, five groups should be=
=20
allowed to own up to one fifth of the total number of stations, or 20%. Any=
=20
concern that one of these groups would end up controlling too big a share=20
of the advertising market would be dealt with by the Justice Department, he=
=20
argued.
[SOURCE: Billboard Radio Monitor, AUTHOR: Emmanuel Legrand]
http://www.billboardradiomonitor.com/radiomonitor/news/business/top_news...
icle_display.jsp?vnu_content_id=3D1000717248

IRAQ TELLS MEDIA TO TOE THE LINE
Iraq's Media High Commission released a statement saying all media=20
organizations operating in Iraq should "differentiate between the innocent=
=20
Fallouja residents who are not targeted by military operations and=20
terrorist groups that infiltrated the city and held its people hostage=20
under the pretext of resistance and jihad." It said news organizations=20
should "guide correspondents in Fallouja =85 not to promote unrealistic=20
positions or project nationalist tags on terrorist gangs of criminals and=20
killers." It also asked media to "set aside space in your news coverage to=
=20
make the position of the Iraqi government, which expresses the aspirations=
=20
of most Iraqis, clear. We hope you comply =85 otherwise we regret we will be=
=20
forced to take all the legal measures to guarantee higher national=20
interests," the statement said. The commission, set up by the former U.S.=20
governor of Iraq, was intended to be independent of the government and to=20
encourage investment in the media and deter state meddling after decades of=
=20
strict control under President Saddam Hussein.
[SOURCE: Los Angeles Times, AUTHOR: Reuters]
http://www.latimes.com/news/printedition/asection/la-fg-media12nov12,1,1...
92.story?coll=3Dla-news-a_section
(requires registration)

BROADBAND/TELECOM

REPORT: POWELL OK WITH DSL/PHONE BUNDLE
FCC Chairman Michael Powell reportedly supports voiding state rules that=20
would require the Baby Bell phone companies to unbundle local-phone and=20
digital-subscriber-line service, according to a Legg Mason Wood Walker=20
report released Wednesday. Verizon Communications and BellSouth won't sell=
=20
DSL service to a consumer unless the consumer also buys local phone=20
service. They also require local-phone customers who want to drop that=20
service to terminate DSL service at the same time. Time Warner, Comcast and=
=20
Bright House Networks have complained to federal and state regulators that=
=20
consumers won't switch to a new phone provider if the consumer has to drop=
=20
both DSL and local-phone service. While some state regulators have called=20
the bundling of DSL and local-phone service an illegal tying arrangement,=20
cable companies have pursued a different regulatory angle, perhaps because=
=20
they don't want to be viewed as favoring the a la carte sale of DSL at the=
=20
same time that they are opposing the a la carte sale of cable networks in=20
Congress and at the FCC. Instead, Comcast and Time Warner told the FCC the=
=20
bundling practice violates federal number-portability rules when the phone=
=20
company refuses to transfer a customer=92s number to a new carrier if the=20
customer won't drop DSL at the same time.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA479579.html?display=3DBreaking+News
(requires subscription)
For more on telecom bundles (from a consumer perspective), see
http://news.com.com/DSL+wars+come+down+to+a+battle+of+the+bundles/2100-1...
3-5445712.html?tag=3Dnefd.lede

MARTIN: CABLE MODEL WORTH EMULATING
Deregulation of expanded-basic-cable rates, combined with allowing cable=20
systems to invest in advanced services free from regulatory constraints, is=
=20
a regulatory model that has served the needs of government, cable operators=
=20
and consumers, FCC Commissioner Kevin Martin said Thursday. =93I think we=20
learn some important lessons from the cable experience,=94 he said. =93While=
we=20
can allow states and local authorities to retain their traditional role as=
=20
regulators of some basic services, at the same time, we need to make sure=20
that new technologies and advanced services are substantially free of state=
=20
and local regulation.=94 Martin noted that the 1992 Cable Act imposed=20
comprehensive pricing and behavioral controls on the cable industry. But=20
sensing that satellite services were ramping up and that cable intended to=
=20
upgrade systems to meet that competition and plunge into the voice and data=
=20
markets, Congress decided to strip away cable regulations.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA479870.html?display=3DBreaking+News
(requires subscription)

CABLE LOBBY TELLS SUPREME COURT: FORGET ABOUT THE BROADBAND NEEDS OF CITIES
[Commentary] The battle over the future of cable broadband is now before=20
the U.S. Supreme Court. The high court will soon decide whether to review=
=20
a key case involving U.S. broadband policy (known as the Brand X=20
decision). Recent filings to the court by municipal governmental groups=20
and the cable lobby reveal important issues at stake for communities in the=
=20
U.S. As the Congress begins the lobbying free-for-all in its reworking of=20
the 1996 Telecommunications Act, the issue of how broadband serves the=20
public interest should be at the core of the debate.
[SOURCE: Center for Digital Democracy]
http://www.democraticmedia.org/news/washingtonwatch/BrandXCities.html

PROPOSED FCC RULES WOULD COST BUSINESSES $130 BILLION
Rules pending at the FCC to eliminate cost-based access to the=20
high-capacity loops that serve business customers would cost American=20
businesses about $130 billion over the next 10 years and deprive the=20
economy of more than 426,000 new jobs, according to a new study released=20
Wednesday by CompTel/ASCENT. In its August 2003 Triennial Review Order, the=
=20
FCC aimed to boost competition by allowing competitive providers to lease=20
DS-1 and DS-3 loops as Unbundled Network Elements (UNEs) at cost-based=20
rates. Previously, these providers had been forced to pay excessively high=
=20
"special access" rates to the incumbent Bell companies to access=20
high-capacity loops. The Bells earn rates of return of well over 40 percent=
=20
on special access rates. Eliminating UNE access - as now proposed - would=20
force competitive providers and their business customers to rely=20
exclusively on special access rates and cost business customers $130=20
billion in higher prices and reduced services over the next 10 years (see=20
table below). Businesses would directly pay about $105 billion in higher=20
rates and would be forced to forego another $25 billion worth of additional=
=20
services because of the increased costs. The extra costs incurred by=20
businesses and loss of competitive options translate into fewer jobs. The=20
Commerce Department's Bureau of Economic Analysis estimates that every=20
additional $1 million in telecom activity creates 17.5 new jobs. Based on=20
that calculation, a loss of $130 billion in telecom activity translates=20
into 426,000 jobs that could be created over 10 years by reducing the=20
economic drag of higher phone bills.
The study is available at the 2nd URL below.
[SOURCE: CompTel/ASCENT Press Release]
http://www.comptelascent.org/news/recent-news/111004.html
http://www.comptelascent.org/public-policy/federal-regulatory/documents/...
/hicap_study_nov10_2004.pdf

IOWA COMMUNITIES TEAM TO INSTALL OWN HIGH-SPEED LINES
More than 80 communities across Iowa have banded to create Opportunity=20
Iowa. The goal: to wire the state for advanced voice, data and video=20
services. The communities represent about 25% of the state's homes and=20
businesses, and more are expected to join later. Under the plan,=20
communities would install -- on their own dime -- high-speed fiber lines.=20
Then they would invite outside vendors such as AT&T to use the lines. The=20
lines could be used to provide voice, data and video services to homes and=
=20
businesses. Vendors would pay towns =93access=94 fees to use their fiber=
lines,=20
just as the local Bells charge AT&T and MCI fees for handling their=20
long-distance calls.
[SOURCE: USAToday, AUTHOR:Leslie Cauley]
http://www.usatoday.com/printedition/money/20041112/4b_mcleod12.art.htm

AFTER LONG PEACE, WIRELESS OPERATOR STIRS UP INDUSTRY
For years, service operators and phone manufacturers coexisted peacefully,=
=20
bonded by a mutual dependency. Companies such as Vodafone didn't want to=20
miss out on hot new phones and phone makers relied on service providers'=20
huge orders. But as the cellphone market slowed, their goals diverged. Now=
=20
Vodafone wants to control the look and feel of a cellphone rather than=20
leave those choices to phone makers. Its profit growth is likely to come=20
from selling add-on services and the most effective way to market them is=20
to embed Vodafone's software inside customers' phones. At stake is control=
=20
of an everyday device owned by more than a billion people. The winner will=
=20
be in a position to shape the future of the cellphone business and cream=20
off the profits that come from being a premium brand. The losers, by=20
contrast, could be stuck with a low-margin commodity business, one that's=20
subservient to its former partner. That was the fate of the U.S.'s=20
personal-computer makers that allowed Microsoft to elevate its own brand=20
over theirs and dominate the discussion about how PCs should operate.
[SOURCE: Wall Street Journal, AUTHOR: David Pringle at=
david.pringle( at )wsj.com]
http://online.wsj.com/article/0,,SB110021593345772017,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

QUICKLY

DIGITAL SERVICES FUND FOR PUBLIC TELEVISION
On Wednesday, the Corporation for Public Broadcasting announced the=20
creation of the $4.7 million Digital Services Fund, which will assist local=
=20
public television stations in creating the first generation prototypes of=20
digital content and services. Among other features, digital technology=20
allows public broadcasters to enhance video and audio quality, to offer=20
multicasting and other programming options, and to create a new array of=20
services to benefit the public. The Digital Services Fund will provide=20
grants for demonstration projects and prototypes, which could range from=20
regional public affairs multicasts to instructional and teacher development=
=20
channels and the delivery of community emergency preparedness content. CPB=
=20
anticipates awarding grants of up to $500,000 on a competitive basis. The=20
Fund will accept proposals through December 3, 2004.
[SOURCE: Corporation for Public Broadcasting Press Release]
http://www.cpb.org/programs/pr.php?prn=3D384

COORDINATION OF SPECTRUM POLICY
FCC Chairman Michael Powell and Assistant Secretary of Commerce for=20
Communications and Information Michael Gallagher met on Wednesday to plan=20
and coordinate the efforts of the FCC and the National Telecommunications=20
and Information Administration (NTIA) on spectrum policy issues. The=20
meeting included senior spectrum policy teams from both organizations. Its=
=20
purpose was to continue the coordinated efforts of the two agencies on=20
spectrum policy. The Communications Act assigns joint jurisdiction for=20
spectrum management to the FCC and the NTIA at the Department of=20
Commerce. The FCC is responsible for non-Federal spectrum uses, e.g.,=20
broadcast, commercial, public safety, and state and local government users,=
=20
and NTIA is responsible for Federal spectrum uses.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254177A1.doc

TECH-SAVVY SCHOOLS RECLAIM MILLIONS
San Diego is one of dozens of school systems nationwide reportedly=20
benefiting from the use of new technology designed to track, monitor,=20
record, and report the delivery of special-education services.
[SOURCE: eSchool News, AUTHOR: Corey Murray]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D5378

US TO APPEAL WTO DECISION ON WEB GAMBLING
The Bush Administration announced Wednesday that it will appeal a World=20
Trade Organization ruling that the U.S. has no right to ban cross-border=20
gambling on the Internet. A senior U.S. trade official said the=20
administration "fundamentally rejects" an assertion within the WTO ruling=20
that countries don't have an explicit right to limit services affecting=20
public morals. U.S. trade officials were particularly alarmed over parts of=
=20
the WTO ruling that asserted that member states had to consult with other=20
countries before modifying laws that affect public morals.
[SOURCE: Wall Street Journal 11/11, AUTHOR: Neil King Jr. neil.king( at )wsj.com]
http://online.wsj.com/article/0,,SB110010540698470176,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

INDUSTRY ND PUBLIC INTEREST GROUPS OPPOSE WIRETAP DESIGN MANDATES FOR THE=20
INTERNET
On November 8, CDT filed detailed comments on behalf of a diverse group of=
=20
companies, trade associations and public interest groups from across the=20
political spectrum opposing the plan of the FCC to extend controversial=20
wiretap design mandates to the Internet. CDT and others argued that=20
broadband access and "Voice over IP" (VoIP) services are not covered by the=
=20
Communications Assistance for Law Enforcement Act of 1994 (CALEA).
[SOURCE: Center for Democracy and Technology]
http://www.cdt.org/publications/vpp/posts.php?hid=3D7
http://www.cdt.org/publications/pp_10.20.shtml
http://www.cdt.org/digi_tele/20041108indpubint.pdf
http://www.cdt.org/digi_tele/voip.shtml

PRIVACY THREATS FROM A BANANA REPUBLIC
[Commentary] A look at the link between offshore outsourcing, the Patriot=20
Act and privacy concerns.
[SOURCE: Cato Institute, AUTHOR: Jim Harper]
http://www.cato.org/tech/tk/041111-tk.html

LATEST CONSPIRACY THEORY -- KERRY WON -- HITS THE ETHER
A closer look at reports circulating around the Internet suggesting John=20
Kerry might have won the election -- and why top Democrats are not=20
believing these theories.
[SOURCE: Washington Post 11/11, AUTHOR: Manuel Roig-Franzia and Dan Keating]
http://www.washingtonpost.com/wp-dyn/articles/A41106-2004Nov10.html
(requires registration)
Vote Fraud Theories, Spread by Blogs, Are Quickly Buried
[SOURCE: New York Times, AUTHOR: Tom Zeller]
http://www.nytimes.com/2004/11/12/politics/12theory.html?hp&ex=3D1100322...
en=3Dbef1453564cd6e4e&ei=3D5094&partner=3Dhomepage
(requires registration)
--------------------------------------------------------------
Have a great weekend. See you Monday.
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 11/10/04

*** We're off tomorrow to celebrate Veteran's Day. Hope you are doing the=20
same. See you Friday. ***

TODAY'S QUESTION: If Jonathan Adelstein were a baseball card, would he be a=
=20
Mickey Mantle rookie card? (see story below)

VONAGE/VOIP NOT SUBJECT TO STATE REGULATION, FCC RULES
Vonage Not Subject to State Regulations Governing Telephone Companies
FCC Further Deregulates Net Calls
Telecom Turnaround

MORE FROM FCC
Adelstein=92s Renomination Could Move With Judges
NAB to Fight 'Local' Sat Radio
CE Seeking Changes in DTV Tuner Phase-in on 25"-36" Sets
Monitoring Nationwide Broadband Rollout
Public Safety Access to the Latest Broadband Technology

E-RATE
eRate Flows Again -- '04 Apps Still Pending
2005 Application Window to Open Dec. 14

MEDIA
Pubcasters Hope to Retain =91Strong=92 Bipartisan Support in Senate
From Florida to Fallujah: What the News Coverage Covers Up

QUICKLY
2004 ITU World Telecommunications Standardization Assembly
New Study Release: Untold Stories
Patrick Ross to Progress & Freedom
Iranian Internet Journalists Face Trial Next Week
Net Access Could Knock Down Barriers to Freedom in Iraq

MORE VONAGE COVERAGE/REACTION

VONAGE/VOIP NOT SUBJECT TO STATE REGULATION, FCC RULES

VONAGE NOT SUBJECT TO STATE REGULATIONS GOVERNING TELEPHONE COMPANIES
The FCC declared that a type of Internet telephony service offered by=20
Vonage called DigitalVoice is not subject to traditional state public=20
utility regulation. DigitalVoice customers can use their phones from a=20
broadband connection anywhere in the world, making it difficult to=20
determine whether a call is local, interstate or international in nature=20
and, the FCC ruled, precluding dual state and federal regulatory regimes.=20
The Commission also stated that other types of IP-enabled services, such as=
=20
those offered by cable companies, that have basic characteristics similar=20
to DigitalVoice would also not be subject to traditional state public=20
utility regulation. The decision makes clear that the FCC, not the state=20
commissions, has the responsibility and obligation to decide whether=20
certain regulations apply to IP-enabled services. The Commission has the=20
power to preempt state regulations that thwart or impede federal authority=
=20
over interstate communications. The Commission also found that regulations=
=20
that would have been imposed by the Minnesota Commission were inconsistent=
=20
with the FCC's deregulatory policies, and that preemption was consistent=20
with federal law and policies intended to promote the continued development=
=20
of the Internet, broadband and interactive services.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254112A1.doc

FCC FURTHER DEREGULATES NET CALLS
The FCC ruled that states are now barred from imposing telecommunications=20
regulations on Internet phone service providers, which treat calls no=20
differently than any other application on the Internet. A representative=20
for the National Association of Regulatory Utility Commissioners said the=20
states are focusing now on a court hearing in mid-November in which=20
Minnesota utility regulators will argue they have a right to oversee Vonage=
=20
and other Net phone service providers. The state is seeking to overturn a=20
ruling that states cannot subject VoIP providers to their rules. FCC=20
Chairman Powell and two of the four FCC commissioners suggested Tuesday=20
that states still have a role to play -- to protect consumer interests. But=
=20
that may not mollify state utility regulators, who have joined the "growing=
=20
chorus of people" criticizing the FCC for taking a piecemeal approach to=20
VoIP regulation.
CommDaily reports that FCC Wireline Bureau Chief Jeffrey Carlisle told=20
reporters the Commission acted now on the jurisdiction issue, rather than=20
waiting for action on
the broader IP-Enabled Services proceeding, because the upcoming court=
hearing.
By acting now, the FCC adds its expertise to the court=92s deliberation,=20
Chief Carlisle said.
[SOURCE: C-Net|News.com, AUTHOR:Ben Charny]
http://news.com.com/FCC+further+deregulates+Net+calls/2100-7352_3-544488...
ml?tag=3Dnefd.top
FCC Finds Vonage Not Subject to State PUC Regulation
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

TELECOM TURNAROUND
[Commentary] Yesterday's ruling is the first time the FCC has exempted an=20
Internet voice service from state regulation. If there ever was a candidate=
=20
for national regulation under the Constitution's Commerce clause, this is=20
it. Our telecom network spans the country and is operated by national=20
companies, yet it is still regulated by 50 mini-dictators known as state=20
utility commissions. Charged with protecting the "public interest," these=20
busybodies have a license to micromanage every firm that's ever conjured up=
=20
a dial tone. The resulting web of regulation has retarded innovation and=20
growth. The ruling allows the FCC to sit back and watch the technology=20
grow. More good news, the editorial ends, is that Democratic Commissioner=20
Jonathan Adelstein -- a former Tom Daschle aide -- will soon be making=20
farewells, assuming the White House doesn't renominate him. Mr. Adelstein=20
has been a persistent obstacle to competition in telecom, and to the kind=20
of lower-cost, better-service telephone future that yesterday's FCC vote=20
heralds.
[SOURCE: Wall Street Journal, AUTHOR: WSJ Editorial Staff]
http://online.wsj.com/article/0,,SB110005280187269776,00.html?mod=3Dtoda...
s_opinion
(requires subscription)

*** This decision has generated a bit of controversy and a good deal of=20
reaction. For more coverage of the story and reaction from many, many=20
organizations, see sections at the end of this email. ***

MORE FROM FCC

ADELSTEIN'S RENOMINATION COULD MOVE WITH JUDGES
Don't pack those bags so quickly, FCC Commissioner Adelstein. Because=20
judicial nominations can take so long to move through Congress, President=20
Bush may be interested in nominating you for another term, if Senate=20
Democrats will confirm a number (80-100) judges that have been held up by=20
the body. As one House Republican staffer said, =93I'll take Jonathan=20
Adelstein for 80 judges any day of the week.=94 Many Senators -- from both=
=20
sides of the aisle -- have expressed their support for Commissioner=20
Adelstein. Congress will resume Nov. 16 for a session designed to finish=20
nearly 10 appropriations bills, an intelligence reform bill, and several=20
other lingering issues.
In a separate story, it was reported widely yesterday that Chairman Michael=
=20
Powell intends to stay on at the FCC for now. There has been speculation=20
that he would leave shortly after the election.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

NAB TO FIGHT 'LOCAL' SAT RADIO
The National Association of Broadcasters Tuesday vowed to continue fighting=
=20
locally targeted traffic and weather reports by satellite radio despite=20
withdrawing its petition asking the FCC to prohibit them. The FCC several=20
weeks ago was moving toward rejecting NAB's request but the NAB's pending=20
withdrawal of the petition apparently prompted the commission to hold off=20
on a ruling. For now, the satellite radio industry is gloating and contends=
=20
NAB withdrew its petition to "save face" rather than suffer a public=20
defeat. "This a complete vindication of our position that XM has complied=20
and continues to comply with FCC rules," the company said in a statement.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA479302.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
See the NAB's request to dismiss the petition at
http://www.nab.org/newsroom/pressrel/filings/SDARSMotiontoDismiss11804.pdf

CE SEEKING CHANGES IN DTV TUNER PHASE-IN ON 25"-36" SETS
The Consumer Electronics industry petitioned the FCC to move up the=20
deadline by which all TV sets with 25"-36" screen sizes must have ATSC=20
tuners. The Consumer Electronics Association (CEA) and the Consumer=20
Electronics Retailers Coalition (CERC), in a joint petition, asked that the=
=20
July 2006 date by which all such receivers must have DTV tuners be moved up=
=20
to March 2006 and that the July 2005 date by which 1/2 the sets must be=20
ATSC-capable be eliminated. They cited unforeseen and =93unduly disruptive=
=94=20
consequences of the Commission=92s phase-in schedule.
[SOURCE: Communications Daily, AUTHOR: Paul Gluckman]
(Not available online)
See Press Release at
http://www.ce.org/press_room/press_release_detail.asp?id=3D10599

MONITORING NATIONWIDE BROADBAND ROLLOUT
The FCC voted to collect additional information about the nationwide=20
availability of broadband and local telephone competition in order to=20
better monitor the status of these critical services. Broadband providers=20
will be required to provide more detailed information on the speed and=20
nature of their service. Broadband-over-power line will be a
separate category in order to track deployment more closely. To better=20
assess broadband availability, incumbent telephone and cable companies will=
=20
be asked to report the extent to which their DSL and cable modem service is=
=20
available where they provide phone or cable television service. The=20
Commission will require local telephone companies, known as local exchange=
=20
carriers or LECs, to report how many of their local service customers also=
=20
subscribe to the LEC=92s long distance service. The data will help the=20
Commission understand how bundling affects local telephone service=20
competition. To better track the dynamics of rural and underserved markets,=
=20
the Commission will require all facilities-based carriers to report,=20
regardless of their size.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254115A1.doc

PUBLIC SAFETY ACCESS TO THE LATEST BROADBAND TECHNOLOGY
The Commission revised technical specifications in the 4.9 GHz band to=20
allow manufacturers to adapt, for that band, technologies that are being=20
used in adjacent spectrum bands, such as the 5.4 GHz Unlicensed National=20
Information Infrastructure (U-NII) unlicensed band and the Intelligent=20
Transportation System (ITS) band. The Commission envisioned that, by=20
leveraging technology already developed for adjacent bands, public safety=20
licensees could use a single, low-cost device to access the 4.9 GHz band,=20
the U-NII band, and the ITS band, allowing them to enjoy savings that are=20
typically limited to the high-volume commercial market. The Commission's=20
action is intended to provide emergency responders with easier access to=20
the latest broadband technology in support of public safety and homeland=20
security missions, such as wireless local area networks for incident scene=
=20
management, emergency dispatch operations, and emergency vehicular=
operations.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254117A1.doc

E-RATE

ERATE FLOWS AGAIN -- '04 APPS STILL PENDING
The Universal Service Administrative Co. (USAC) has announced that it will=
=20
begin mailing funding commitments again and expects at least one wave of=20
funding commitments per month moving forward. This slow trickle of eRate=20
funds has prompted a broad coalition of education groups, known as the=20
Education and Libraries Networks Coalition (EdLiNC), to lobby members of=20
Congress to draft a bill that would exempt the eRate and Rural Health Care=
=20
programs from the Anti-Deficiency Act. With this simple waiver, the eRate=20
could go back to issuing funding commitment letters the way it always had,=
=20
regardless of how much money is in the bank. Apparently, FCC Chairman=20
Michael Powell supports such an exemption. The Wall Street Journal reported=
=20
that the FCC has not applied the law to the High Cost, Low Income program=20
because doing so could have a devastating effect on the entire Universal=20
Service program. It would mean phone companies would have to contribute 25=
=20
percent of their long-distance revenue in addition to their current=20
payments, the Journal reported. "That's the nightmare scenario," Frank=20
Gumper, chairman of USAC's board of directors, told the Journal. "By then,=
=20
these programs would be on the verge of collapsing."
[SOURCE: eSchool News, AUTHOR: Cara Branigan]
http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=3D5376

2005 APPLICATION WINDOW TO OPEN DEC 14
Though the status of eRate applications from 2003 should be resolved=20
shortly, most 2004 applicants will still be wondering how much eRate=20
funding they are to receive before it's time for them to apply again for=20
2005 funding. The Schools and Libraries Division of USAC announced on Nov.=
=20
5 that applicants will have 66 days in which to file applications the 2005=
=20
funding year. The application window, which is scheduled to open more than=
=20
a month later than previous years and is shorter than the typical 75 days,=
=20
will open Dec.14 and close Feb. 17.
[SOURCE: eSchool News, AUTHOR: Cara Branigan]
http://www.eschoolnews.com/news/showStory.cfm?ArticleID=3D5377
See the USAC announcement at
http://www.sl.universalservice.org/whatsnew/2004/112004.asp#110504

MEDIA

PUBCASTERS HOPE TO RETAIN 'STRONG' BIPARTISAN SUPPORT IN SENATE
Public broadcasters believe they will still have strong, bi-partisan=20
support in the Senate, but are worried they could be hit because of an=20
upcoming budget crisis. Association of Public TV Stations (APTS) President=
=20
John Lawson said, "the problem is they are not going to have a whole lot of=
=20
money to spend.=94 The broadcasters are preparing grassroots efforts to=20
protect funding for public broadcasting. Next year, public broadcasting=20
will still have to fight against an administration bent against forward=20
funding of the Corporation for Public Broadcasting, but APTS is hopeful of=
=20
passage of a CPB reauthorization bill that gained unanimous support in the=
=20
Senate Commerce Committee this year. APTS is still working with Congress on=
=20
an idea to create a trust fund for public broadcasting in return for a=20
voluntary quick end to analog broadcasting by public TV stations.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

FROM FLORIDA TO FALLUJAH: WHAT THE NEWS COVERAGE COVERS UP
[Commentary] Media coverage lurches from event to event, and from spectacle=
=20
to spectacle as a substance deficit disorder hyperactively drives the news=
=20
agenda. No sooner are we focused on one major story, than another intrudes=
=20
to change the subject and insure that there is no time for follow-up, much=
=20
less thoughtful processing. In some cases, this is the natural disorder of=
=20
news, but in many others, there are hidden hands shifting the agenda in a=20
conscious effort not simply to influence what we think, but control what we=
=20
think about. Schecter uses the example of the current campaign in Fallujah=
=20
to highlight attempts to shape news narrative.
[SOURCE: Mediachannel.org, AUTHOR: Danny Schechter]
http://www.mediachannel.org/views/dissector/affalert288.shtml

QUICKLY

2004 ITU WORLD TELECOMMUNICATIONS STANDARDIZATION ASSEMBLY
International Bureau reported to the Commission on the 2004 International=20
Telecommunication Union (ITU) World Telecommunication Standardization=20
Assembly (WTSA) and the next steps for the Commission resulting from the=20
conference. The conference, among other things, adopted the work plan for=20
the ITU Telecommunication Standardization Sector over the next four years=20
which focuses on communications, network security, and maintaining=20
interoperability between current and next-generation networks. In=20
addition, the WTSA addressed communications issues challenging countries=20
around the world, including the transition from traditional communications=
=20
networks to new technologies.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254099A1.doc

UNTOLD STORIES: CREATIVE CONSEQUENCES OF THE RIGHTS CLEARANCE CULTURE FOR=20
DOC FILMMAKERS
This study explores the implications of the rights clearance process on=20
documentary filmmaking, and makes recommendations to lower costs, reduce=20
frustration, and promote creativity. It focuses on the creative experience=
=20
of independent, professional documentary filmmakers.
[SOURCE: Center for Social Media, AUTHOR: Pat Aufderheide and Peter Jaszi]
http://www.centerforsocialmedia.org/rock/finalreport.htm

PATRICK ROSS TO PROGRESS & FREEDOM
Patrick Ross has been named vice president for communications and external=
=20
affairs at The Progress & Freedom Foundation. Ross most recently managed=20
Washington Internet Daily and reported for its sister publication,=20
Communications Daily. He was also the first Washington Bureau Chief for=20
CNet|News.com.
The Progress & Freedom Foundation is a market-oriented think tank that=20
studies the digital revolution and its implications for public policy.
http://www.pff.org/news/news/2004/110904rossrelease.html

IRANIAN INTERNET JOURNALISTS FACE TRIAL NEXT WEEK
In Iran, the Internet has become a refuge for reformist journalists who=20
lost their jobs when the country's judiciary closed more than 100=20
pro-reform publications in the past four years. But at least nine=20
journalists writing on online journals known as weblogs and news-based=20
Internet sites have been detained by the judiciary since September and they=
=20
will face trial beginning next week accused of spreading propaganda against=
=20
the Islamic state. International human rights groups criticized the lack of=
=20
freedom of expression in Iran which they say has more journalists in jail=20
than any other country in the Middle East.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D6...
37

NET ACCESS COULD KNOCK DOWN BARRIERS TO FREEDOM IN IRAQ
There could be no more effective way to promote democracy and free markets=
=20
in Iraq than to significantly boost the number of Iraqis using the=20
Internet. Can we send Steve Case there?
[SOURCE: USAToday, AUTHOR:]
http://www.usatoday.com/printedition/money/20041110/maney10.art.htm

ADDITIONAL COVERAGE OF VONAGE DECISION

FCC Includes Cable in Vonage Ruling
Republican FCC Commissioner Kevin Martin adopted cable=92s cause and won the=
=20
internal battle to broaden the staff=92s recommendation and include cable=20
telephony services.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA479292.html?display=3DBreaking+News
(requires subscription)

FCC Hands Cable the Phone
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA479288?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

F.C.C. Takes on Oversight of Internet Phone Services
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2004/11/10/technology/10fcc.html
(requires registration)

FCC Gives Vonage Interstate Status In Win for Internet-Phone Firms
[SOURCE: Wall Street Journal]
http://online.wsj.com/article/0,,SB110001796704968961,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

FCC Asserts Role as Internet Phone Regulator
[SOURCE: Washington Post, AUTHOR: Yuki Noguchi]
http://www.washingtonpost.com/wp-dyn/articles/A37972-2004Nov9.html
(requires registration)

FCC declares authority over states on VoIP
[SOURCE: San Jose Mercury News, AUTHOR:John Woolfolk]
http://www.mercurynews.com/mld/mercurynews/business/technology/10143621.htm

FCC Exempts VOIP From State Rules
[SOURCE: Los Angeles Times, AUTHOR:Jube Shiver Jr.]
http://www.latimes.com/business/printedition/la-fi-fcc10nov10,1,6220451....
y?coll=3Dla-headlines-pe-business
(requires registration)

REACTION TO VONAGE DECISION

* FCC Chairman Powell: Since 1870 home telephone service has been=20
essentially the same-two phones connected by a wire. This landmark order=20
recognizes that a revolution has occurred. Internet voice services have=20
cracked the 19th Century mold, to the great benefit of consumers. VoIP=20
services certainly enable voice communications between two or more people,=
=20
just as the traditional telephone network does, but that is where the=20
similarity ends. Internet voice is an Internet application that takes its=
=20
place alongside email and instant messaging as an incredibly versatile tool=
=20
for communicating with people all over the world. As such it has truly=20
unique characteristics. VoIP is customizable, global, inexpensive.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254112A2.doc

* FCC Commissioner Copps: While I agree that traditional jurisdictional=20
boundaries are eroding in our new Internet-centric world, we need a clear=20
and comprehensive framework for addressing this new reality. Instead the=20
Commission moves bit-by-bit through individual company petitions, in effect=
=20
checking off business plans as they walk through the door. This is not the=
=20
way we should be proceeding. We need a framework for all carriers and all=
=20
services, not a stream of incremental decisions based on the needs of=20
individual companies. We need a framework to explain the consequences for=
=20
homeland security, public safety and 911. We need a framework for consumer=
=20
protection. We need a framework to address intercarrier compensation,=20
state and federal universal service, and the impact on rural America. But=
=20
all I see coming out of this particular decision is . . . more questions.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254112A4.doc

* FCC Commissioner Adelstein: Where this Order falls short is its failure=20
to account in a meaningful way for essential policy issues, including=20
universal service, public safety, law enforcement, consumer privacy,=20
disabilities access, and intercarrier compensation, and the effect of our=20
preemption here.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254112A5.doc

* Michael D. Gallagher, Assistant Secretary of Commerce for Communications=
=20
and Information: Today's FCC decision is a big step forward for advanced=20
communications in the United States. Voice communications over the Net have=
=20
been cleared for takeoff. The FCC has acted to keep the Internet--an=20
inherently global network--unburdened by costly state regulation. As a=20
result, a rich variety of IP services benefiting U.S. consumers and=20
businesses will be accelerated. Today's vote is going to keep the U.S. on=20
the cutting edge of innovation."
http://www.ntia.doc.gov/ntiahome/press/2004/fccvonage_11092004.html

* Consumer Advocates: =93The FCC took all of the authority and none of the=
=20
responsibility,=94 said Mark Cooper, director of research for Consumer=20
Federation of America. =93This ruling gave VoIP providers everything they=20
asked for, but did not consider what consumers need. New technologies such=
=20
as VoIP could be a great benefit to consumers, but this piecemeal approach=
=20
to tackling the tough public policy questions puts consumers at risk.=94
Added Janee Briesemeister, senior policy analyst for Consumers Union: =93By=
=20
approving the Vonage petition, the FCC tied the hands of state regulators=20
who have asserted that VoIP is no different than traditional phone service=
=20
in terms of public safety, universal service and consumer protection.
=93If the FCC thinks the states don't have the authority to ensure public=20
safety, consumer protection and universal service for consumers, then it=20
should have provided a framework for doing so =97 but it did not,=94=20
Briesemeister added. "Companies are now free to market VoIP as an=20
alternative to traditional phone service, while consumers are left in limbo=
=20
over vital issues, such as whether E911 will work on their Internet phone.=
=94
http://www.consumersunion.org/pub/core_telecom_and_utilities/001607.html...
e

* Association for Local Telecommunications Services is "pleased with the=20
Commission=92s decision to maintain a light regulatory touch over Vonage=92s=
=20
service. At the same time, the Commission must acknowledge that such retail=
=20
VoIP services are not themselves alternatives to underlying bottleneck=20
facilities that these services ride over,=94 said ALTS General Counsel Jason=
=20
Oxman. "VoIP providers like Vonage do not own their own transmission=20
facilities and, under the 1996 Telecommunications Act, cannot directly=20
access the Bell companies=92 network facilities necessary to serve their=20
customers. VoIP providers therefore work extensively with competitive LECs=
=20
to access the necessary underlying networks,=94 said Mr. Oxman. =93The FCC=
must=20
continue to recognize that VoIP services will only be available to=20
consumers and small businesses if
the Commission maintains its requirement that incumbent LECs make access to=
=20
loops and transport available at cost-based rates.=94
http://206.161.82.210/NewsPress/110904VonagePetition.pdf

* CompTel/ASCENT CEO H. Russell Frisby Jr.: =93By declaring VoIP traffic as=
=20
interstate in nature, the FCC is taking an important step to encourage=20
competitive telecom service alternatives for consumers and to foster=20
entrepreneurship by those willing to explore new businesses and deploy=20
cutting-edge technology.
As one of the key tenets of CompTel/ASCENT=92s March 2004 VoIP Policy=20
Principles, federal oversight will allow VoIP and other IP-based network=20
applications the opportunity to gain acceptance without being hampered by=20
different =AD and at many times conflicting =AD rules on a state-by-state=
basis.
To foster further development of VoIP, CompTel/ASCENT believes that any=20
decision to regulate =AD or not to regulate =AD should be consistently=
applied=20
to the various network configurations designed to carry VoIP traffic. Most=
=20
importantly, access to underlying physical networks should not be allowed=20
to create a bottleneck that will foreclose on the ability of all providers=
=20
to deliver the services their customers choose.=94
http://www.comptelascent.org/news/recent-news/110904.html

* Consumer Electronics Association President and CEO Gary Shapiro: "It is=20
clear that advancement of VoIP services is a key element in driving=20
consumer demand and adoption of broadband. There is a unique synergy=20
between VoIP and broadband that allows each to be used as a purchase=20
incentive for the other. Today's action by the Commission is a strong step=
=20
toward regulatory clarity, which is needed to advance VoIP services that=20
will provide enormous benefits to consumers and the economy. We commend the=
=20
FCC's leadership in taking action to avoid a patchwork of state regulations=
=20
that would stifle the advancement of this new form of communication."
http://www.ce.org/press_Room/press_release_detail.asp?id=3D10598

* CTIA-The Wireless Association=99 President and CEO Steve Largent: =93We=20
applaud the FCC for recognizing the fundamental interstate and=20
international characteristics of IP-enabled services. Much like wireless,=
=20
one of the primary benefits of IP-enabled service is its ability to deliver=
=20
data to a consumer at anytime, in any place, from any location with=20
broadband access. CTIA strongly agrees that such services should be free=20
to develop under a single, unified regulatory framework, unencumbered by=20
conflicting state public utility regulations. Furthermore, the=20
competitive and innovative forces driving IP-enabled service to the=20
marketplace will =AD like wireless service - provide consumers with more=20
choices and lower prices.
The FCC=92s action today recognizes the harm that a patchwork of state=20
utility regulations can pose to the development and proliferation of=20
inherently interstate services such as VoIP and wireless. By establishing a=
=20
uniform, nationwide regulatory framework, IP-enabled services will avoid=20
the costly inefficiencies that accompany a patchwork of inconsistent and=20
varying regulatory schemes. This ruling is of great significance to the=20
consumer seeking these new and innovative services in the most=20
cost-effective manner possible.=94
http://www.ctia.org/news_media/press/body.cfm?record_id=3D1466

* Robert Sachs, President & CEO National Cable & Telecommunications=20
Association: =93By establishing a national framework for the regulation of=
=20
Voice over Internet Protocol (VoIP) services, the FCC has taken a=20
significant step towards promoting competition in enhanced voice=20
services. As facilities-based VoIP providers, cable companies offer=20
consumers sustainable, high quality voice services. We believe the=20
Commission's decision will further incent companies to invest in this=20
exciting new technology.=94

* Walter B. McCormick, Jr., President and CEO of USTA: "In today=92s rapidly=
=20
evolving communications market, the Commission=92s action is a necessary=
step=20
to ensure that innovative, borderless communications are not hindered by=20
outdated, conflicting regulatory schemes from fifty-one different local=20
jurisdictions. While this move acknowledges the tremendous changes in=20
communications, in future proceedings the Commission must ensure that=20
market-based competition thrives in an environment where all technologies=20
compete under the same rules. The Commission must also set a competitive=20
framework that encourages investment in the infrastructure and shares the=20
responsibility for maintaining the networks.=94
http://www.usta.org/news_releases.php?urh=3Dhome.news.nr2004_1109

* VON Coalition: The FCC today embraced the future of VoIP by ensuring it=20
will be free from a patchwork of multiple - and inevitably conflicting -=20
state jurisdictions. The VON Coalition praises today's decision to declare=
=20
VoIP an interstate service, but cautions that this is only one small step=20
toward unleashing the full promise and
potential of VoIP. The FCC now must act quickly to reform the badly broken=
=20
intercarrier compensation system and make sure new technologies and=20
services will not be hindered by a scheme to subsidize old networks. We=20
look forward to working with Congress, the FCC and the states, as well as=20
rural, urban, and other interests, to forge original yet pragmatic=20
solutions that enable consumers, businesses, and the economy to achieve the=
=20
full promise and potential that VoIP can deliver.=94
http://www.von.org/usr_files/JurisdictionStatementFINAL.pdf
The Voice on the Net or VON Coalition consists of VoIP companies.

* National Telecommunications Cooperative Association (NTCA) Chief=20
Executive Officer Michael E. Brunner: =93While we appreciate the FCC=92s=
desire=20
to foster consumer choice in the telecom marketplace, this announcement=20
does nothing to enhance those choices. This may lead to putting the=20
national telecom infrastructure in jeopardy. By getting a free ride on that=
=20
infrastructure without compensating the carriers that maintain these=20
networks, VoIP providers continue to gain a significant advantage. And, by=
=20
usurping states=92 ability to regulate these providers, the commission has=
=20
created an unfair competitive advantage over those telecom carriers that=20
are regulated at both the state and federal levels. We disagree with the=20
FCC=92s decision to give preference to one technology and tilting the=20
competitive advantage in VoIP=92s favor to the detriment of other=
technologies."
http://www.ntca.org/ka/ka-3.cfm?content_item_id=3D2705&folder_id=3D298
NTCA represents nearly 600 locally owned and controlled telecommunications=
=20
cooperatives and commercial companies throughout rural and small-town=
America.
--------------------------------------------------------------

Benton's Communications-related Headlines for 11/09/04

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

You can listen to the FCC open meeting this morning at
http://www.fcc.gov/realaudio/ There are four items on the agenda including
the Vonage petition (see next story), a report on the ITU World
Telecommunication Standardization Assembly, changes to the rules applicable
to the 4.940-4.990 GHz Band and (drum roll, please) the local competition
and broadband data gathering program.

TELECOM
FCC Seen Shielding Web-Phone from States, Sources
BellSouth's Call
GAO Clears FCC's 800 MHz Rebanding Order
USTA Urges Universal Service Fund Fix

MEDIA
Viacom Slams Jackson Decision at FCC
Satellite Radio and Localism

QUICKLY
Media Reform News
Slowdown Forces Many to Wander for Work
Cheryl Leanza Leaving MAP

TELECOM

FCC SEEN SHIELDING WEB-PHONE FROM STATES, SOURCES
At its meeting today, the FCC is expected to shield Internet-based
telephone services like Vonage from some key state regulations.
Specifically, the Commission may declare Vonage's service interstate in
nature and therefore exempt from state requirements that apply to
traditional phone services like rate regulation. Vonage, which has more
than 300,000 lines in service, allows a customer to make telephone calls
nationwide and to Canada for a flat fee using equipment attached to a
high-speed Internet, or broadband, connection. But Vonage is battling with
state regulators, like Minnesota, which are demanding Vonage obtain state
certification, be subject to rate regulation and offer emergency 911
services comparable to those of land lines. Minnesota tried to force Vonage
to comply with state regulations but the company won a federal court
decision that said it was exempt. Oral arguments for the state's appeal is
set for Nov. 17.
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=6747443
Also --
Federal Ruling on Web Calling Is Expected to Aid Sector's Growth
"The big concern is if other companies find a way to use this decision to
characterize their traffic as interstate, and there are big incentives for
them to do that," said Brad Ramsay, general counsel of the National
Association of Regulatory Utility Commissioners. About 24 states collect at
least $1.9 billion a year for their own Universal Service plans, which
subsidize rural phone service and Internet to schools nationwide. Mr.
Ramsay said that pool would shrink considerably as customers began
switching from traditional phone service to Internet-based plans.
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB109995886468268278,00.html?mod=todays...
(requires subscription)
USAToday
http://www.usatoday.com/printedition/money/20041109/3b_voip_09.art.htm

BELLSOUTH'S CALL
Since cable companies can discriminate against competing ISPs, BellSouth is
asking the FCC to repeal the open-access rule for teleco's broadband
services. BellSouth says that the different regulatory approach to the
services gives cable an unfair advantage when it already the market leader
in broadband. BellSouth said complying with FCC rules costs $3.50 per
month, per customer. "Those expenses translate directly into higher costs
for consumers," BellSouth said. Consumer Federation of America research
director Mark Cooper said his group would oppose BellSouth at the
appropriate time. The CFA and other consumer groups have unsuccessfully
urged the FCC to apply the same open-access rules to cable. "BellSouth
clearly wants to be done with nondiscrimination entirely," Cooper said.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA478505.html?display=Policy
(requires subscription)

GAO CLEARS FCC'S 800 MHZ REBANDING ORDER
The FCC's decision giving Nextel 1.9 GHz spectrum as part of the 800 MHz
rebanding doesn't violate federal law against private sale of public
resources, the General Accounting Office found. Verizon dropped its legal
objections to the rebanding order last week, and the GAO action was one
remaining area of uncertainty. FCC Chairman Michael Powell released the
following statement:
I am pleased that GAO recognizes the FCC's legal authority to implement a
solution to the 800 MHz interference problem. The GAO independently
confirmed that the Commission's authority to regulate spectrum in the
public interest is broad enough to include the tools we utilized to resolve
this critical public safety matter. GAO's decision provides further
impetus to the entire industry to work with the FCC as we implement our
plan to improve communications for public safety and emergency responders.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-254076A1.doc

USTA URGES UNIVERSAL SERVICE FUND FIX
The United States Telecom Association has urged two key leaders on telecom
issues to take immediate legislative action that would help prevent a
potential disruption of universal service payments to telecom service
providers in rural areas across the nation. After recent action by the FCC
to comply with government accounting rules and the Anti-Deficiency Act, the
Universal Service Administrative Corporation has been forced to radically
change the timing for distributing universal service funds. Legislative
action would help ensure that there is not a steep increase in costs to
consumers or missed payments to providers. In letters sent to Senate
Appropriations Committee Chairman Ted Stevens and Senator Daniel Inouye, a
senior member of the Appropriations Committee and the incoming ranking
member of the Senate Commerce Committee, USTA President and CEO Walter B.
McCormick, Jr., urged the senators to include language in the final
appropriations bill for the year to remove USAC from the requirements of
the Anti-Deficiency Act. In doing so, Congress would ensure that there is
no disruption of universal service payments to service providers and that
the universal service system remains viable and sustainable. "Unless
Congress acts quickly, this situation could further undermine the stability
of the nation's Universal Service Fund," McCormick explained. "Senators
Stevens and Inouye understand the importance of preserving the stability of
universal service and we urge them to act now to help maintain the existing
system until long-term issues can be resolved."
[SOURCE: United States Telecom Association Press Release]
http://www.usta.org/news_releases.php?urh=home.news.nr2004_1108

MEDIA

VIACOM SLAMS JACKSON DECISION AT FCC
Viacom is making good on a promise to fight the FCC's decision to fine the
company for the Super Bowl halftime show. In an appeal of the Commission's
record $550,000 fine against Viacom owned and operated CBS TV stations,
Viacom suggests the Commission has run amok, "no longer recognize[ing] any
meaningful limits to its ability to regulate broadcast content," despite
Supreme Court warnings about overbroad speech regulation. Challenging the
so-called Pacifica Supreme Court decision that upheld the FCC's power to
regulate indecency, Viacom argues that it is now "implausible to justify
broadcast indecency regulations on the 'uniquely pervasive presence' of
broadcasting. In addition to being outmoded, Viacom argues that the FCC's
indecency standard is excessively vague. Viacom warns that if the
Commission's ruling stands, "it will lead to the end of live broadcasting
as we know it by placing broadcasters on notice that they risk massive
liability and perhaps even license revocation if they fail to adopt
technical measures to avoid the possibility of a spontaneous
transgression." See you in court.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA479033.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
Also see --
USAToday
http://www.usatoday.com/printedition/money/20041109/4b_viacom_09.art.htm

SATELLITE RADIO AND LOCALISM
In April, the National Association of Broadcasters filed a petition saying
that satellite radio and traffic services violated satellite digital audio
radio service authorizations and the FCC seemed close to deciding on the
matter. But now the NAB has asked the Commission to hold that thought and
wait and see how these services develop. NAB said XM reportedly intends to
use the local broadcast feed for Major League Baseball, strip out the
broadcasters' ads and add their own and split the ad revenue with MLB.
While that could decrease broadcasters' ability to provide local service,
these developments haven't played out enough to allow the FCC to make a
"reasoned" decision. [And believe you me, the NAB is all about reason and
reasonableness.]
[SOURCE: Communications Daily]
(Not available online)

QUICKLY

MEDIA REFORM NEWS
Second issue of Free Press newsletter is now available online. Articles
include: Focus of Media Policy to Expand in 2005; Town Meetings on the
Future of Media
Draw Hundreds of Concerned Citizens; Community Wireless Developers and
Policy Experts Gather for First-Time Summit; Debunking Media Mythology by
Robert W. McChesney; With no renomination, Adelstein to leave FCC.
[SOURCE: Free Press Newsletter]
http://www.freepress.net/newsletter/v1n2.pdf

SLOWDOWN FORCES MANY TO WANDER FOR WORK
Unemployment among tech workers, once almost nonexistent, is now higher
than the overall jobless rate for the first time in more than 30 years. See
what this means for tech workers at the URL below.
[SOURCE: Washington Post, AUTHOR: Greg Schneider]
http://www.washingtonpost.com/wp-dyn/articles/A35193-2004Nov8.html
(requires registration)
See also
Out of Sight, Out of Mind?
The offshore outsourcing issue will not go away.
[SOURCE: C-Net|News.com, AUTHOR: Charles Cooper ]
http://news.com.com/Out+of+sight%2C+out+of+mind/2010-1028_3-5439405.html

Cheryl Leanza, deputy director of Media Access Project, said Monday that
she is leaving the public-interest law firm to tackle telecommunications
issues as principal legislative counsel for the National League of Cities.
http://www.broadcastingcable.com/article/CA479037.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
--------------------------------------------------------------
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.
--------------------------------------------------------------

Benton's Communications-related Headlines for 11/08/04

There's a FCC meeting tomorrow focusing on telecom issues. For upcoming
media policy events, see http://www.benton.org/calendar.htm

TODAY'S QUESTION: What's next?

WASHINGTON AGENDA
Fat Cats Get Fatter
DTV Transition May Be on Tap for Dec. FCC Meeting
NAB Will Commit to DTV Deadline
GOP Wants News Organizations to Abandon Exit Polls
Intel Chief Barrett Lays Out U.S. Tech Policy Agenda

MEDIA
Belo Gave Time to 159 Candidates
Sweating Bush II at CBS
Kerry Finally Wins One
Sinclair Sits Pretty
Fox News, Media Elite
Drama on Horizon for Spanish Television

TELECOM
Showdown of the Giants
Cable Titans Discuss Offering Cellular Services, Intensifying Foray Into
Telecom's Turf
Verizon to Buy All of NextWave's Spectrum

QUICKLY
One Internet, Many Copyright Laws
See Wired
RSA Sees Looming Identity Crisis Online

WASHINGTON AGENDA

FAT CATS GET FATTER
B&C looks at five potential changes that could be the result of last week's
elections. 1) Fat Cats Get Fatter: Media giants Comcast, News Corp., Viacom
and other conglomerates will seek to strike new deals to grow their empires
in a more relaxed regulatory environment. A second Bush administration
will resurrect deregulation to make it so. Lifting restrictions will lead
to "fewer owners controlling even more assets," said Leonard Hill who
represents the independent TV production community. "They'll be able to
curry favor with entrenched Washington power in turn for relaxation of
regulations designed to protect the public interest." 2) Morality Police
Will See Red Over Blue TV. Conservative groups will turn up the pressure on
the FCC and Congress to scrub filth out of broadcast prime time. With as
many as four Supreme Court spots likely to open in the new Bush presidency,
some industry folk worry that the courts could support a la carte cable
pricing options or -- Jenna Jameson forbid -- outlawing cable porn. 3) FCC
Chief Polishes His Image, Then Quits. FCC Chairman Michael Powell may take
the time to work on his legacy: accelerating the transition to digital
television, rolling out Internet TV and backing other gee-whiz
technologies. He will have a temporary 3-1 Republican majority after
December. 4) GOP Stands Divided on Digital Deadline. Chairman Powell favors
2009 as the end date for analog TV, by House Commerce Committee Chairman
wants to see a return of the spectrum currently used for TV stations in
2006. Either deadline could require up to $1 billion in subsidies for
low-income, broadcast-only households. The Administration is not so keen on
that. 5) Congress Reopens the Telecom Act, Reaps a Windfall. Congress plans
to launch a rewrite of the laws governing media, phone and wireless
industries sometime next year. A big side benefit to House and Senate
members is that telecom companies, fearful of losing favor, will feel
obligated to donate millions over the next session. If past legislative
battles are any indication, Congress will milk the opportunity for campaign
cash rather than pass legislation quickly.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA478554?display=Feature&referr...
(free access for Benton's Headlines subscribers)

DTV TRANSITION MAY BE ON TAP FOR DEC FCC MEETING
The FCC is likely to vote on permanent phone competition rules at the
Commission's December 15 open meeting, but it is uncertain whether it will
vote on a plan to speed the transition to digital-only television
broadcasting. Chairman Michael Powell has expressed an interest in voting
in December, but there might be less urgency with President Bush's
reelection. The FCC has five weeks after this week's meeting to complete
orders for the Dec meeting. However, Thanksgiving and the need to complete
action on air-to-ground communications will both be distractions. The FCC
also hopes to issue recommendations to Congress this year on what to do
with the 15% of consumers whose TV sets would no longer work after the DTV
transition.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)

NAB WILL COMMIT TO DTV DEADLINE
The National Association of Broadcasters, Disney-owned and operated ABC TV
stations, associations representing CBS and NBC affiliates and 17 major TV
station groups including Belo, LIN, Emmis, Hearst-Argyle, Tribune Gannet
and Media General are lining up to commit to a hard deadline for completing
the switch to all-digital broadcasting. No date is actually being
suggested, the broadcasters said they will "work with Congress and
regulators to develop a specific DTV transition plan in the coming months
that will bring an orderly end to the transition." BUT -- there's always a
but -- broadcasters insist that the FCC drop the major tenet of the
so-called "Ferree plan," counting nearly all cable subscribers as receiving
local DTV stations, even if some of those viewers are receiving the
stations' digital programming after cable operators convert them to an
analog format. Other conditions broadcasters demand include cable carriage
rights for every digital multicast channel they offer free over the air and
the delay of an FCC plan to let Wi-Fi and other unlicensed communications
devices operate on vacant TV channels until after the DTV transition is
complete. The industry also asked that any hard DTV completion date exempt
broadcasters facing technical problems that prevent them from going digital.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA478389.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

GOP WANTS NEWS ORGANIZATIONS TO ABANDON EXIT POLLS
After early exit polls in Tuesday's election inaccurately suggested that
Democratic presidential candidate Sen. John Kerry would trounce President
Bush, Republican National Committee Chairman Ed Gillespie is recommending
that major news organizations pull the plug on the prognostications. "In
2000 the exit data was wrong on Election Day. In 2002, the exit returns
were wrong on Election Day. And in 2004, the exit data were wrong on
Election Day -- all three times, by the way, in a way that skewed against
Republicans and had a dispiriting effect on Republican voters across the
country."
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=6674

INTEL CHIEF BARRETT LAYS OUT US TECH POLICY AGENDA
Speaking to an audience at the annual Semiconductor Industry Association
dinner, Intel CEO Craig Barrett deliver a stinging rebuke of Washington
politicians and offer a tech-policy agenda for the newly re-elected Bush
administration to consider. The United States, he said, must focus on
improving science and math education, spend more on research and
development and develop technology infrastructure such as broadband.
[SOURCE: San Jose Mercury News, AUTHOR:Dean Takahashi]
http://www.mercurynews.com/mld/mercurynews/business/technology/10109610.htm

MEDIA

BELO GAVE TIME TO 159 CANDIDATES
Belo-owned TV stations in 15 markets collectively produced over 20 hours of
programming in the "It's Your Time" campaign between September 21 and
election day. Each candidate was given five minutes, four to tell why they
should be elected and one to answer a question on an issue central to their
particular race. In addition to airing the segments on its TV stations,
Belo also ran them on its regional and local cable news channels and made
them available to noncommercial stations in the market.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA478196.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

SWEATING BUSH II AT CBS
Players involved in the notorious 60 Minutes-on-Wednesday segment, reported
by Dan Rather, that employed dubious documents regarding President Bush's
National Guard service may face stiffer internal punishment now that
President Bush has won reelection. Now the hammer could come down on
producer Mary Mapes, 60 Minutes II executive producer Josh Howard, Dan
Rather and all the way up to news division President Andrew Heyward.
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA478551?display=The+Beat&refer...
(free access for Benton's Headlines subscribers)

KERRY FINALLY WINS ONE
The evening broadcasts on ABC, CBS and NBC gave the Kerry campaign a bigger
chunk of their campaign coverage than they devoted to any other nominee of
either party in the past five presidential elections. But while Kerry
prospered on the network news, coverage of Senate and House races,
statewide contests and propositions withered in 2004. Through the end of
October, the total coverage of those subjects drew just 3% of the overall
election news-hole. That's a drop of more than half since 1992 and more
than two-thirds since 1996.
[SOURCE: Broadcasting&Cable, AUTHOR: Andrew Tyndall ]
http://www.broadcastingcable.com/article/CA478578.html?display=Feature&r...
(free access for Benton's Headlines subscribers)

SINCLAIR SITS PRETTY
Sinclair Broadcasting said its controversial program on John Kerry's war
record was hugely profitable for the company, so much so that it intends to
produce more such shows from its centralized news operation near Baltimore.
"We made more revenue on that show than we would have otherwise across our
platform," said Sinclair CEO David Smith. "The lesson learned is that the
central news structure we've created has the capability of producing
relevant content and we are convinced we can make more money in other
dayparts."
[SOURCE: Variety, AUTHOR: Michael Learmonth]
http://story.news.yahoo.com/news?tmpl=story&cid=1951&ncid=762&e=8&u=/var...
Also see --
Sinclair Moves on From Stolen Spat
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA478552?display=The+Beat&refer...
(free access for Benton's Headlines subscribers)

FOX NEWS, MEDIA ELITE
Cable news channel Fox News amassed an audience of 8.1 million viewers on
election night, clobbering other cable news networks. NBC, ABC and CBS, on
the other hand, lost millions of viewers this year, according to Nielsen
Media Research. And Fox News actually came closer to CBS in the ratings
than CNN did to Fox News. Fox News has now become popular enough -- with an
audience whose conservative political leanings track those of the voters
who re-elected President Bush -- to lay claim to its own place in the
establishment.
[SOURCE: New York Times, AUTHOR: Jacques Steinberg]
http://www.nytimes.com/2004/11/08/business/media/08fox.html
(requires registration)

DRAMA ON HORIZON FOR SPANISH TELEVISION
A change of government in Spain means a new ballgame for Spain's fiercely
politicized media companies. The 7-month-old Socialist government of Prime
Minister Jose Luis Rodriguez Zapatero plans to award licenses for two new
television networks, much to the annoyance of Telecinco and Antena 3, the
TV networks that dominate Spain's 6-billion-euro ($7.7-billion) advertising
market. It is widely expected that one of the new TV licenses will be
awarded to Prisa, a pro-Socialist media group that owns the daily newspaper
El Pais, commercial radio broadcaster Cadena Ser and a 23% stake in
Sogecable, a pay TV company. With the political wind now blowing in its
favor, Prisa's shares are up 30% this year. Meanwhile, Vocento, a
cash-rich, privately owned group of regional newspapers, is openly lobbying
for the other TV license.
[SOURCE: Los Angeles Times, AUTHOR: Leslie Crawford]
http://www.latimes.com/business/printedition/la-ft-spain8nov08,1,4431556...
(requires registration)

TELECOM

SHOWDOWN OF THE GIANTS
With the nation's cable companies determined to offer Internet calling to
millions, the phone companies are responding by jumping into the TV
business. Both Verizon and SBC have launched multibillion-dollar efforts to
roll out high-capacity fiber lines that can deliver Internet service, voice
and video through a single connection. Services to consumers will rollout
in 2005 and Verizon is already lining up rights from content providers. But
offering conventional TV fare is likely to require the phone companies to
acquire franchise rights, just like cable companies must do. Winning the
necessary licenses from municipalities is a time-consuming process that
involves lobbying and, at times, legal wrangling at a local level that can
take months. This isn't the first time that the Bells have tried to make a
push into television. In 1993, Bell Atlantic tried to acquire cable giant
TCI, which was later sold to AT&T and today is part of Comcast. In the
mid-1990s, Bell Atlantic and Nynex (now both part of Verizon) and SBC
jointly formed TeleTV and hired a CBS executive to buy content that could
run over fiber. Meanwhile, the former Ameritech (now owned by SBC) and Walt
Disney formed Americast, a cable company that bought or established several
dozen cable TV systems and tried to line up programming. Both TeleTV and
Americast fizzled: Fiber technology back then turned out to be too
expensive for Bell Atlantic, and innovative content was hard to come by for
both ventures.
[SOURCE: Wall Street Journal, AUTHOR: Drucker jesse.drucker( at )wsj.com, Berman
dennis.berman( at )wsj.com and Grant peter.grant( at )wsj.com ]
http://online.wsj.com/article/0,,SB109987210662467137,00.html?mod=todays...
(requires subscription)
See also --
Is Telecom Too Late to TV?
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint
joe.flint( at )wsj.com and Brooks Barnes brooks.barnes( at )wsj.com]
http://online.wsj.com/article/0,,SB109987236138067144,00.html?mod=todays...
(requires subscription)
Fiber doesn't make it to big cities yet
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
http://www.usatoday.com/printedition/money/20041108/1b_verizon08.art.htm

CABLE TITANS DISCUSS OFFERING CELLULAR SERVICES, INTENSIFYING FORAY INTO
TELECOM'S TURF
Competition between cable and telephone giants may be intensifying. The
nation's biggest cable providers are discussing the formation of a joint
venture to offer cellphone service, according to people familiar with the
talks. The members of the informal consortium include Comcast, Time Warner,
Cox Communications, Charter Communications and Advance/Newhouse
Communications. Either by purchasing a wireless operator outright or
reselling services of an existing network, a deal would allow cable
operators to offer a full bundle of services -- including video, high-speed
Internet access, landline telephone and cellular service -- to the
country's 74 million cable subscribers. The theory is that customers
getting all their services from one provider -- on a single bill, at a
discount -- are less likely to defect from any one of those services. The
success of this approach still is uncertain: a mere 1% of consumers use a
single provider to get local telephone, long distance, Internet access and
cellphone service.
[SOURCE: Wall Street Journal, AUTHOR: Drucker jesse.drucker( at )wsj.com, Berman
dennis.berman( at )wsj.com and Grant peter.grant( at )wsj.com ]
http://online.wsj.com/article/0,,SB109986585663666960,00.html?mod=todays...
(requires subscription)

VERIZON TO BUY ALL OF NEXTWAVE'S SPECTRUM
Verizon Wireless agreed to buy all of NextWave's PCS licenses for $3
billion. A federal Bankruptcy Court will be asked to rule on the request at
a Nov. 30 hearing , since the sale represents NextWave's new reorganization
plan. Meanwhile, a top FCC official said the deal likely won't set off
regulatory red flags. If completed, the sale will essentially end the
multi-year NextWave saga, one of the telecom industry's most dramatic
ongoing stories.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
Coverage also in --
WSJ:
http://online.wsj.com/article/0,,SB109963817243165926,00.html?mod=todays...

QUICKLY

ONE INTERNET, MANY COPYRIGHT LAWS
The Elvis Presley hit "That's All Right" is due to become copyright-free
next year in Europe, but not for another 45 years in the US. The case is
one more example of the Internet's inherent lack of respect for national
borders or, from another view, the world's lack of reckoning for the
international nature of the Internet, and it is also an example of the
already complicated range of copyright laws.
[SOURCE: New York Times, AUTHOR: Victoria Shannon]
http://www.nytimes.com/2004/11/08/technology/08newcon.html
(requires registration)

SEE WIRED
In the November issue of Wired there is a CD issued under a new type of
license called the Creative Commons, the brainchild of Stanford Law School
Professor Lawrence Lessig. The artists on the disc have agreed to give
music lovers the freedom to transfer the songs to their computers,
distribute them over Internet file-swapping networks like Kazaa, and even
sample the rhythms and hooks to create their own compositions. The only
thing you can't do is use them in commercials or, in a handful of
instances, a song you plan to release.
[SOURCE: San Jose Mercury News, AUTHOR: Dawn C. Chmielewski]
http://www.mercurynews.com/mld/mercurynews/business/technology/10126944.htm

RSA SEES LOOMING IDENTITY CRISIS ONLINE
Andrew Nash, the director of technology for RSA Security said businesses
need to move their online customers toward a federated identity policy or
security threats could bring people to lose confidence in trading. "You're
talking about hundreds of thousands of people who need to be
authenticated," Nash said at the RSA Conference in Barcelona. "If we can't
adopt quickly enough, the Internet will become known as a very unsafe
place. People won't have confidence in it and (companies) will bail out, if
not put their technology on hold."
[SOURCE: C-Net|News.com, AUTHOR: Dan Ilett]
http://news.com.com/RSA+sees+looming+identity+crisis+online/2100-7348_3-...
--------------------------------------------------------------
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.
--------------------------------------------------------------

Benton's Communications-related Headlines for 11/05/04

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

TODAY'S QUESTION: Can the media do a better job covering politics and=20
elections?

MEDIA & ELECTIONS
Campaign's Lasting Effect for Media
Local TV Campaign Coverage Falls Following Debates;
Newspapers Surge
All Politics is Local Ad Dollars
The Valuable Lessons of Sinclair
Too Little, Too Late

INTELLECTUAL PROPERTY
MPAA to Sue Over Movie File Sharing
Copyright Enforcement Revisited

INTERNET/TELECOM
BellSouth Lobbies Powell's FCC To Undo Internet's Openness
NCTA: No High Court Hearing for Cities
Understanding Consumer Attitudes About Wireless Telephone Directories
and Privacy
CTIA Expresses Concern About Increase in Consumers=92
Universal Service Charge

QUICKLY
Federal Funds for Public Television Digital Transition
The People=92s Voice: Community Radio in Guatemala
Web Calls May Be More Popular Than Thought - Survey
Social Responsibility in Dollars and Cents

MEDIA & ELECTIONS

CAMPAIGN'S LASTING EFFECT FOR MEDIA
[Commentary] There's a growing sense that this election may mark tectonic=20
shifts in the landscape of political journalism that seems to have as much=
=20
to do with changes among the consumers of media as with the media itself.=20
Although the public viewed the media as biased, they still approved of=20
their performance. This election year marked the end of the mainstream=20
broadcast networks' serious participation in American political journalism=
=20
and the decisive rise to influence of the cable news operations. When CBS,=
=20
NBC, and ABC declined to offer serious coverage of the national political=20
conventions, it was a clear signal that their news divisions' corporate=20
overseers had lost the will -- that is, the financial incentive -- to=20
fulfill their obligation, as federal license holders, to operate in the=20
public interest. The issue of public interest obligations arose again=20
during the Sinclair case. While what Sinclair proposed to do was, by every=
=20
defensible journalistic standard, wrong and unethical, it was entitled to=20
behave so as an assertion of its rights under the First Amendment. The=20
First Amendment protects all speech, not just true speech or good speech or=
=20
fair speech. It affords its highest protection, moreover, to political=20
speech, which the Stolen Honor documentary -- whatever its moral or factual=
=20
defects -- most assuredly is. This threat to the most fundamental of our=20
liberties was created by the FCC's failure to defend the public's interest.=
=20
Media concentration raises the stakes in any given legal controversy to a=20
point where it virtually invites legal and governmental intrusion into the=
=20
media's editorial decisions, putting the First Amendment at unconscionable=
=20
risk. There's an unlooked-for lesson from this campaign.
[SOURCE: Christian Science Monitor, AUTHOR: Tim Rutten writes about the=20
media for the Los Angeles Times]
http://www.csmonitor.com/2004/1103/p09s02-cogn.html
See Also:
Media Election Coverage: Did it serve voters?
News, research and analysis regarding coverage of the 2004 election finds a=
=20
lot to be desired, especially when it comes to voter knowledge.
[SOURCE: Free Press]
http://www.freepress.net/washington/election.php

LOCAL TV CAMPAIGN COVERAGE FALLS FOLLOWING DEBATES; NEWSPAPERS SURGE
With little more than a week remaining before Election Day, most San=20
Francisco Bay Area TV stations actually reduced their campaign coverage=20
from levels earlier in October, a Grade the News incremental analysis of=20
daily news reporting shows. However, newspapers, particularly the Contra=20
Costa Times and San Jose Mercury News, surged. With the presidential and=20
vice presidential debates over, viewers might have expected an intensifying=
=20
interest in California and local contests, particularly with ballots=20
crowded with state and local propositions. But the coverage emphasis=20
remained on the proven ratings winner -- the tight presidential contest.
There's much more about election coverage in and around San Francisco at=20
the URL below.
[SOURCE: Grade the News, AUTHOR: Michael Stoll]
http://www.stanford.edu/group/gradethenews/pages2/campaign2004-3.htm

ALL POLITICS IS LOCAL AD DOLLARS
Profit reports are rolling in from television station owners in swing=20
states. Gray Television owns primarily CBS and NBC affiliates and reports a=
=20
whopping 22% increase in broadcasting revenues to $73.7 million for the=20
third quarter ended Sept. 30, versus $60.3 million for the same quarter in=
=20
2003. That was driven primarily by political spending, which was $12=20
million for the quarter vs. $1.1 million for the off-year elections in=20
2003. Excluding that windfall, the company's 30 TV stations' local ad=20
revenue was still up 5%, to $39.1 million from $37.2 million. Thanks to=20
political spending, Sinclair Broadcast Group was able to record a 1.8%=20
increase in net broadcast revenues to $164 million in the third quarter vs.=
=20
3Q 2003. Without the 2003-2004 boost in political spending from $1.3=20
million to $8 million, local ad revenue was down .8% as it was, but without=
=20
political spending, it would have been down 2.3%.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA477967?display=3DBreaking+New...
ferral=3DSUPP
http://www.broadcastingcable.com/article/CA477977?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

THE VALUABLE LESSONS ON SINCLAIR
[Commentary] What did we learn from Sinclair's attempt to air "Stolen=20
Honor"? The goal of fair and balanced political discussion on local=20
television matters tremendously to millions of Americans. That one=20
corporation based in Baltimore could force 62 local stations in places as=20
different as Buffalo and Las Vegas to join its political crusade is the=20
nightmare scenario of media consolidation.
[SOURCE: Center for American Progress, AUTHOR: Mark Lloyd]
http://www.americanprogress.org/site/pp.asp?c=3DbiJRJ8OVF&b=3D239581

TOO LITTLE, TOO LATE
[Commentary] George W. Bush=92s electoral victory is chilling proof that the=
=20
conservatives have achieved dominance over the flow of information to the=20
American people and that even a well-run Democratic campaign stands=20
virtually no chance for national success without major changes in how the=20
news media operates. The outcome of Election 2004 also highlights perhaps=20
the greatest failure of the Democratic/liberal side in American politics: a=
=20
refusal to invest in the development of a comparable system for=20
distributing information that can counter the Right=92s potent media=20
infrastructure. For the past quarter century, the Right has spent billions=
=20
of dollars to build a vertically integrated media apparatus =AD reaching=
from=20
the powerhouse Fox News cable network through hard-line conservative=20
newspapers and magazines to talk radio networks to book publishing to=20
well-funded Internet operations and right-wing bloggers. Using this=20
infrastructure, the conservatives can put any number of =93themes=94 into=
play=20
that will instantaneously reach tens of millions of Americans through a=20
variety of outlets, whose messages then reinforce each other in the=20
public=92s mind. Beyond putting opposing politicians on the defensive, this=
=20
Right-Wing Machine intimidates mainstream journalists and news executives=20
who will bend over backwards and cater to the conservative side, do almost=
=20
anything to avoid being tagged with the career-threatening tag of =93liberal=
.=94
Liberal foundations kept repeating the refrain: =93We don't do media.=94 One=
=20
key liberal foundation explicitly forbade even submitting funding requests=
=20
that related to media projects.
[SOURCE: ConsortiumNews.com, AUTHOR: Robert Parry]
http://www.consortiumnews.com/2004/110304.html

INTELLECTUAL PROPERTY

MPAA TO SUE OVER MOVIE FILE SWAPPING
The Motion Picture Association of America, which represents major Hollywood=
=20
studios such as Sony Pictures Entertainment and Viacom's Paramount=20
Pictures, plans to file about 200 suits against computer users who put=20
illegally obtained movies on Internet file-sharing services for other users=
=20
to download and watch for free. Gigi B. Sohn, president of Public=20
Knowledge, a Washington-based advocacy group that favors broad access to=20
digital copyrighted material, said that the industry has a right to sue to=
=20
protect its copyright but that consumers must be given a viable legal=20
alternative, or people will continue stealing movies. The industry needs=20
"an iPod for movies," said Sohn, referring to Apple's popular digital song=
=20
player. Apple's online music store, which sells songs for the iPod for 99=20
cents each, has been emulated by other companies. Also, "the movie industry=
=20
needs to clean up its own house," she said, referring to pre-release copies=
=20
of first-run films that get smuggled out of studios and wind up on the=20
Internet. Typically, pirated movies found on the Internet are of low=20
quality, having been recorded with hand-held devices in movie theaters.
[SOURCE: Washington Post, AUTHOR: Frank Ahrens]
http://www.washingtonpost.com/wp-dyn/articles/A25784-2004Nov4.html
(requires registration)
See Also:
Statement of Gigi B. Sohn, president of Public Knowledge, on the=20
announcement by the Motion Picture Association of America that it plans to=
=20
sue P2P File Traders:
Public Knowledge acknowledges the potential threat that large scale=20
unauthorized file trading of movies may pose, and has encouraged the motion=
=20
picture industry to protect its copyrights by pursuing strategically=20
targeted, appropriate legal action against actual infringers, particularly=
=20
in the case of pre-release films.
Public Knowledge also firmly believes that simply bringing lawsuits against=
=20
individual infringers will not solve the problem of infringing activity=20
over P2P networks. First and foremost, it is crucial that the motion=20
picture industry develop new business models that treat the low cost,=20
ubiquity, and speed of the Internet as an opportunity, not a=20
threat. Because the technology for downloading movies is not yet as=20
advanced as the technology for downloading music, the industry has some=20
time to work out an approach to leverage new and emerging delivery systems=
=20
to its advantage. We believe that if the motion picture industry provides=
=20
easy access to a wide array of movies, at a reasonable price, and also=20
provide consumers the flexibility of use to which they have become=20
accustomed, it will profit handsomely, just as it has for the past 20 years=
=20
in the home video and DVD market. Public Knowledge also supports the use of=
=20
limited, non-invasive self-help measures, and balanced public education on=
=20
the rights and responsibilities of consumers as strategies for limiting=20
infringing activity. We believe that motion picture industry can take all=
=20
of these approaches now, without further legislation or the imposition of=20
technology mandates.
http://www.publicknowledge.org/pressroom/releases/pr110404

COPYRIGHT ENFORCEMENT REVISITED
[Commentary] On Thursday, the motion picture industry announced that it=20
will begin filing copyright infringement lawsuits against individual file=20
sharers. The industry claims its intellectual property (IP) rights have=20
been violated by the uploading and sharing of movies on various=20
peer-to-peer (P2P) networks. The movie industry=92s targeted lawsuit=
strategy=20
mimics the model previously employed by the music industry, which has filed=
=20
over 6,000 lawsuits against online file sharers since September 2003.=20
Targeted copyright enforcement along the lines of what the music and movie=
=20
industry are pursuing with their lawsuits against individuals file sharers=
=20
provides the best way of ensuring baseline copyright protections. It is=20
certainly preferable to a regime of overly broad contributory liability, or=
=20
ham-handed legislative or regulatory responses.
[SOURCE: Cato Institute, AUTHOR: Adam Thierer]
http://www.cato.org/tech/tk/041104-tk.html

INTERNET/TELECOM

BELLSOUTH LOBBIES POWELL'S FCC TO UNDO INTERNET'S OPENNESS
BellSouth has asked FCC Chairman Michael Powell to overturn critical=20
commission safeguards that have been important to the Internet's role as a=
=20
democratic medium. In a 27 October 2004 letter to Powell, BellSouth's=20
chief lobbyist petitioned to have the agency set aside two critical=20
rules. First, giant "Baby Bell" phone companies would be given full=20
control over the "last-mile" of broadband Internet delivery, permitting=20
them to favor their own Internet content. Since they would no longer be=20
"common carriers" under BellSouth's plan, they could effectively=20
discriminate against all competing and unaffiliated content. In addition,=
=20
these phone networks would no longer offer ISP choice, permitting companies=
=20
like BellSouth or Verizon to extend their monopolies into the broadband=20
market. The phone lobby has also embarked on a campaign to undermine=20
policies that now safeguard the Internet's "open" architecture, as=20
evidenced in its latest deregulatory-minded website, disingenuously named=20
The Future =85 Faster. CDD asks readers to tell the Chairman of the FCC and=
=20
the CEO of BellSouth that you oppose their plans to permit broadband=20
monopolies! Call Michael Powell at 202-418-1000 and BellSouth CEO F. Duane=
=20
Ackerman at 404-249-2000. Tell your pension plan not to invest in=20
BellSouth or in any other company lobbying to undermine the Internet.
[SOURCE: Center for Digital Democracy]
http://www.democraticmedia.org/news/washingtonwatch/bellsouth.html

NCTA: NO HIGH COURT HEARING FOR CITIES
Cities from the around the country want the Supreme Court to overturn a FCC=
=20
ruling that denied them authority to collect franchise fees on cable-modem=
=20
revenue. But the National Cable & Telecommunications Association is arguing=
=20
that cities should not be granted a hearing. =93The cities=92 petition=
presents=20
no question that is worthy of this court=92s attention,=94 the NCTA said in=
a=20
Supreme Court brief. A few years ago, cable operators and cities agreed=20
that cable-modem service was a cable service under the law, and cable=20
operators agreed to pay franchise fees. But cable abandoned that position=20
and stopped paying franchise fees after the FCC ruled that cable-modem=20
service was strictly an interstate information service. The U.S. Court of=20
Appeals for the Ninth Circuit overruled the FCC on that point by asserting=
=20
that cable-modem service was also a telecommunications service -- a=20
classification that exposes cable to Internet open-access mandates. The=20
NCTA and the Justice Department have asked the Supreme Court to strike down=
=20
the telecommunications-service holding. The high court is expected to=20
announce within a few months whether it will take the case.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA478175.html?display=3DBreaking+News
(requires subscription)

UNDERSTANDING CONSUMER ATTITUDES ABOUT WIRELESS TELEPHONE DIRECTORIES AND=20
PRIVACY
AARP conducted a nationwide survey to measure cell phone users' interest in=
=20
making their wireless phone numbers publicly available through a directory.=
=20
The survey asked respondents whether they thought it was good or bad that=20
there is currently no way for another individual to get the respondent's=20
wireless phone number unless the respondent chooses to give it to that=20
person. Wireless phone owners of all ages overwhelmingly said that they=20
thought this was a good thing. Respondents were also asked whether they=20
would want their cell phone number included in a directory so that others=20
could locate them. Ten percent of wireless phone owners age 18-49 said they=
=20
would want to be included in such a directory, while half as many (5=20
percent) wireless owners age 65 and older, and 6 percent of those age 50-64=
=20
indicated that they would want to be included in a wireless directory. The=
=20
survey asked wireless phone owners to assume that a cell phone directory=20
would in fact be compiled and then asked them to identify the best method=20
for creating a directory. More specifically, it asked whether wireless=20
providers should 1) add every cell phone number to their directory and give=
=20
wireless owners the ability to have their number removed upon request, or=20
2) only add those phone numbers of wireless users who give their permission=
=20
to do so. Respondents of all age groups overwhelmingly indicated that a=20
wireless directory should only include the cell phone numbers of those=20
wireless users who elect to participate. Cell phone owners highly value the=
=20
privacy of their wireless telephone numbers. An overwhelming majority of=20
them view the current lack of a publicly available wireless phone directory=
=20
as a positive. If such a directory were created, most cell phone owners=20
indicated they would not want to have their number included. In fact, they=
=20
believe that no wireless phone number should be added to the directory=20
unless the cell phone owner specifically requested it.
[SOURCE: AARP Public Policy Institute, AUTHORS: Neal Walters and=20
Christopher Baker]
http://research.aarp.org/consume/fs99_wireless.html

CTIA EXPRESSES CONCERN ABOUT INCREASE IN CONSUMERS' UNIVERSAL SERVICE CHARGE
CTIA-The Wireless Association expressed concern Wednesday about a=20
significant jump in federal universal service fund size projections that=20
could lead to a nearly 40% increase in the Universal Service Fund charge on=
=20
consumers=92 bills. This increase is primarily due to the application of=20
arcane U.S. government accounting rules, the Anti-Deficiency Act and the=20
Miscellaneous Receipts Act to the Universal Service Funds. If these=20
statutes are construed to apply to the schools and libraries program, as is=
=20
reportedly being recommended by FCC staff, wireless customers will see=20
their Universal Service Fund contribution increase almost 40% as of January=
=20
1, 2005. The FCC staff have advised the administrator of these funds, the=20
Universal Service Administrative Company (=93USAC=94) that, under the=20
accounting rules, USAC must collect funds for all commitments under the=20
schools and libraries universal service program, even when a significant=20
portion of those commitments never result in funding obligations.
[SOURCE: CTIA-The Wireless Association/ Press Release]
http://www.ctia.org/news_media/press/body.cfm?record_id=3D1463

QUICKLY

FEDERAL FUNDS FOR PUBLIC TELEVISION DIGITAL TRANSITION
On Thursday, the Corporation for Public Broadcasting awarded nearly $14=20
million to 33 public television stations nationwide. The funds will allow=20
the stations to acquire equipment needed to transmit a digital signal, and=
=20
eventually to provide digital services, ranging from regional public=20
affairs multicasts to full-time instructional and teacher development=20
channels and the delivery of new community emergency preparedness content.=
=20
Congress has provided CPB with nearly $150 million in special funding to=20
aid public television and radio=92s conversion from analog to digital=20
broadcasting. With today=92s announcement, CPB has awarded 285 digital=
grants=20
to public radio stations and 229 grants to public television stations. At=20
present, 292 of 356 public television stations are already broadcasting in=
=20
digital, making public digital television available in approximately 94=20
percent of U.S. television households. A list of grantees can be found at=20
the URL below. Applications will be accepted for the seventh round of=20
digital transition funding beginning mid-November through December 20.
[SOURCE: Corporation for Public Broadcasting Press Release]
http://www.cpb.org/programs/pr.php?prn=3D383

THE PEOPLE'S VOICE: COMMUNITY RADIO IN GUATEMALA
On May 22, 1987, Guatemalan guerillas hijacked the frequency of a=20
state-approved radio station to broadcast their popular revolutionary=20
message. Voz Popular, the voice of Guatemala=92s guerilla party, the URNG,=
=20
transmitted from a mobile unit atop the Volcano Tajumulco, Central=20
America=92s highest peak. For nine years, the insurgents provided an=20
alternative media source to the government propaganda broadcast by most=20
radio and television stations, which often censored their programming for=20
fear of government reprisal. Learn more about community radio at the URL=
below.
[SOURCE: Americas Program, Interhemispheric Resource Center, AUTHOR: Lisa=20
Viscidi]
http://www.americaspolicy.org/articles/2004/0410radio.html

WEB CALLS MAY BE MORE POPULAR THAN THOUGHT -- SURVEY
Over 50 million western European consumers with a broadband Internet=20
connection at home may use telephony software and special phones by 2008,=20
British research group Analysys found. "The impact on traditional telephony=
=20
providers' revenues could reach 6.4 billion euros in 2008, representing 13%=
=20
of the residential fixed-line voice market," said analyst Stephen Sale,=20
adding this was a worst case scenario drawn up for operators who want to=20
know how badly they can be hit.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml?type=3DinternetNews&storyID=3D6...
78

SOCIAL RESPONSIBILITY IN DOLLARS AND CENTS
Nearly 50 hardware and telecommunications companies around the world use=20
guidelines developed by Global Reporting Initiative, a Netherlands-based=20
nonprofit that offers companies help on how to improve their performance=20
when it comes to social responsibility. The URL below links to an interview=
=20
with Ernst Ligteringen, GRI's CEO, about reporting to socially responsible=
=20
investors.
[SOURCE: C-Net|News.com, AUTHOR: Dawn Kawamoto ]
http://news.com.com/Social+responsibility+in+dollars+and+cents/2008-1014...
439271.html
--------------------------------------------------------------
Thanks for reading. Have a great weekend.
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 11/04/04

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

WHAT THE ELECTION MEANS
What Election Results Mean for Communications Policy
Paying for Campaigns: McCain Eyes Next Target

COVERING ELECTION NIGHT
How Insiders Were Fooled
Election Coverage Draws Large Prime-Time Audience

TELECOM
USAC to Resume Issuing Funding Commitment Decision Letters
FCC Aims at Retaining Phone Competition

NEW PUBLICATIONS
Open Architecture as Communications Policy
Illinois Online

WHAT THE ELECTION MEANS

WHAT THE ELECTION MEANS FOR COMMUNICATIONS POLICY
The election means a lot of things to a lot of people, but under this=20
umbrella, we'll cover the impact on communications policy. CommDaily=20
reports that Republicans in Congress will have even greater control and=20
are likely to continue to push for free trade and a more deregulatory=20
approach to telecom. Proponents of stronger media ownership rules will=20
likely have a harder time getting Congress to roll back more lenient FCC=20
rules as President Bush has shown support for the FCC=92s ownership changes.
Republicans and are expected to begin a rewrite -- or, at least,=20
reexamination -- of US telecommunication law. Rep. Joe Barton (R-TX) is=20
expected to retain his chairmanship of the Energy and Commerce Committee.=20
Rep Barton has called for ending the digital-TV transition Dec. 31, 2006,=20
which clashes with a FCC plan that would end it Dec. 31, 2008. He also says=
=20
a revamp of the Telecommunications Act is needed to take into account the=20
convergence of voice, video and data over the Internet and to accommodate=20
strains on the subsidy program to keep local phone service affordable in=20
rural America. In the Senate, Ted Stevens (R-Alaska) is expected to take=20
command of the Commerce Committee from Sen. John McCain (R-AZ), who won=20
re-election Tuesday night, but must yield the gavel due to GOP Senate rules=
=20
that impose term limits on committee chairmen. Months ago, Sen Stevens said=
=20
writing a new telecommunications law was a priority. Affordable rural phone=
=20
rates have been a Stevens cause for decades. He is troubled that if voice=20
traffic migrates to the Internet and private Internet-protocol networks and=
=20
providers do not have to contribute to the phone-subsidy program, local=20
phone rates will rise in his state.
The win for President Bush (and loss for Sen Thomas Daschle (D-SD)) means=20
FCC Commissioner Jonathan Adelstein will lose his seat when Congress=20
adjourns. There's no telling how long it will take the President to=20
nominate a replacement leaving FCC Republicans with a 3-1 majority. The=20
term of Kathleen Abernathy, a Republican, has also expired, but she can=20
remain at the FCC until Congress adjourns next year unless Bush nominates=20
someone to replace her before then. It is unclear whether FCC Chairman will=
=20
remain on the Commission for President Bush's second term.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA477638.html?display=3DBreaking+News
http://www.multichannel.com/article/CA477776.html?display=3DBreaking+News
(requires subscription)
Little New Expected in Congressional Agenda After Republican Victory
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)
Bigger, Faster, and Less Regulated
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2004/11/04/business/04bizreact.html?pagewanted=3D4
(requires registration)
Media ownership rules may loosen even more
[SOURCE: USAToday]
http://www.usatoday.com/printedition/money/20041104/3b_regulatory04.art.htm
TVWeek
http://www.tvweek.com/news.cms?newsId=3D6654

PAYING FOR CAMPAIGNS: MCCAIN EYES NEXT TARGET
[Commentary] The elections of 2004 proved the success of the=20
McCain-Feingold Bipartisan Campaign Reform Act while highlighting a new=20
problem within the system that still needs to be addressed. A new problem=20
has emerged in the form of tax-exempt 527 groups, named for a section of=20
the tax code for a category of non-profit political organizations.Political=
=20
operatives in both parties created new 527 groups to circumvent campaign=20
finance laws and continue to inject soft money into federal elections. The=
=20
527 groups illegally raised and spent tens of millions of dollars in soft=20
money on ads and partisan voter-mobilization efforts to influence the=20
presidential election. At the core of the financing for these groups was a=
=20
relatively small number of very wealthy individuals making large soft-money=
=20
contributions. Four individuals alone gave a combined total of $78 million=
=20
to these groups. It is clear that the Federal Elections Commission is a=20
failed agency with overtly partisan commissioners who oppose both new and=20
longstanding campaign finance statutes. The FEC has proved its=20
ineffectiveness and its willingness to run roughshod over the will of the=20
Congress, the Supreme Court, the American people and the Constitution. In=20
January, the new Congress will convene, and we will initiate a new round of=
=20
necessary reforms =97 beginning with a new enforcement agency to replace the=
FEC.
[SOURCE: USAToday, AUTHOR: Sen John McCain (R-AZ)]
http://www.usatoday.com/printedition/news/20041104/opcom04.art.htm

COVERING ELECTION NIGHT

HOW INSIDERS WERE FOOLED
If you just watched TV Tuesday night, you had a good impression of who=20
would eventually win the election. for about seven hours in the afternoon=20
and early evening, several million "insiders" with access to exit-poll data=
=20
-- blog readers, print journalists, TV executives, politicos and their=20
e-mail buddies -- had a different impression. Bloggers leaked early exit=20
polls that were wrong in some cases. And some insiders disregarded warnings=
=20
from the exit pollsters that theirs is an inexact science. By comparison,=20
most pre-election polls were quite accurate: They gave President Bush a=20
narrow lead nationally, and correctly identified the battleground states.=20
Warren Mitofsky, a longtime CBS election analyst who co-heads the=20
media-owned consortium called the National Election Pool, said the=20
consortium spotted problems with its early data in Florida, South Carolina,=
=20
Virginia and six other states. "We had called the networks earlier in the=20
day and told them about a handful of states where we didn't think the=20
results were accurate. But we didn't think we were supposed to share that=20
with the leaker and the leakee." Indeed, Mr. Mitofsky said: "All the people=
=20
getting leaked stuff were getting [it] from people who weren't always=20
accurate . . . and were premature, and now they are complaining about it.=20
We didn't mislead the people we were working with. We made any number of=20
projections. All of them were correct."
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com &=
=20
Glenn R. Simpson glenn.simpson( at )wsj.com]
http://online.wsj.com/article/0,,SB109951770243863984,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
Survey Experts Cite Problems With Data and Interpretation
[SOURCE: New York Times, AUTHOR: Jim Rutenberg]
http://www.nytimes.com/2004/11/04/politics/campaign/04exit.html?pagewanted=
=3Dall
(requires registration)

ELECTION COVERAGE DRAWS LARGE PRIME-TIME AUDIENCE
Who says Americans aren't interested in politics? Tuesday's election=20
produced the biggest voter turnout since 1968 with approximately 120=20
million ballots cast. And 63 million viewers tuned in to find out who won.=
=20
NBC was the choice of the largest number of broadcast viewers, Fox News=20
Channel had its biggest night ever, and Univision was the overwhelming=20
choice for Spanish-language coverage.
[SOURCE: TVWeek, AUTHOR: ]
http://www.tvweek.com/news.cms?newsId=3D6658
See also --
Cable Networks Score Big in Election Ratings
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint joe.flint( at )wsj.com ]
http://online.wsj.com/article/0,,SB109951877797464020,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
They Don't Declare: The Vote-Callers Who Lost Their Voice
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A23756-2004Nov3.html
(requires registration)
Once Bitten, Twice Tempted, But No Call in Wee Hours
[SOURCE: New York Times, AUTHOR: Jacques Steinberg & David Carr]
http://www.nytimes.com/2004/11/04/politics/campaign/04networks.html?page...
ed=3Dall
(requires registration)
Also:
TV networks were in no rush to call presidential election
[SOURCE: USAToday]
http://www.usatoday.com/printedition/news/20041104/a_networks04.art.htm
Bloggers Gain Attention In 2004 Election
[SOURCE: Washington Post, AUTHOR: Leslie Walker walkerl( at )washpost.com]
http://www.washingtonpost.com/wp-dyn/articles/A23628-2004Nov3.html
(requires registration)

TELECOM

USAC TO RESUME ISSUING FUNDING COMMITMENT DECISION LETTERS
In early August, the Universal Service Administrative Company (USAC)=20
suspended issuance of Funding Commitment Decision Letters (FCDLs) for both=
=20
schools and libraries and rural health care providers for all funding=20
years. USAC has worked closely with the FCC since then and has now=20
determined the amount of unobligated cash it has available to cover new=20
commitments and will resume issuing new FCDLs within the next two weeks. In=
=20
issuing FCDLs, USAC will follow the prioritization principles posted on=20
this web site on October 27 (see=20
http://www.universalservice.org/new/2004.asp#102704). Note that available=20
funds are calculated separately for each support mechanism. Generally,=20
commitments will be issued for applications and meritorious appeals for=20
funding years prior to Funding Year 2004 first and then, for Funding Year=20
2004, requests for telecommunications services and Internet access=20
(Priority 1) first and, for schools and libraries, internal connections=20
second. If funds are not sufficient for all pending requests within one=20
priority, requests will be funded based on the date the application review=
=20
was completed. USAC expects to have sufficient funds to make commitments on=
=20
all pending Rural Health Care requests that have completed review and=20
generally to be able to issue FCDLs on other pending applications as review=
=20
is completed. With respect to the Schools and Libraries mechanism, USAC=20
expects to issue FCDLs for all applications for funding years prior to 2004=
=20
that have completed review and to have sufficient funds to make commitments=
=20
for Priority 1 services on some portion of the applications that have=20
completed review based on the date of completion. As additional funds=20
become available through contributions to the Universal Service Fund and=20
through "deobligation" of previously committed funds (for example, funds=20
committed for recurring services for Funding Year 2003 and not invoiced by=
=20
October 28, 2004), USAC will make additional commitments -- first for=20
prior-year applications and appeals and then for Priority 1 requests on=20
applications for 2004. Commitments for prior years will be made as they=20
become ready. For Funding Year 2004, USAC expects to issue periodic "waves"=
=20
of commitments. USAC cannot predict the exact timing at this time, but=20
expects at least one such wave a month.
[SOURCE: Universal Service Administrative Company]
http://www.universalservice.org/new/2004.asp#110304

FCC AIMS AT RETAINING PHONE COMPETITION
The FCC is drafting a plan that could allow residential customers to keep=20
their discounted local phone service from providers such as AT&T and MCI=20
for up to two years. The development could be good news for rivals to the=20
regional Bells. FCC Chairman Michael Powell has pushed a deregulatory=20
agenda that would free the Bells from having to lease their wires to=20
competitors at government-set low rates. The FCC staff plans to propose=20
later this month that rivals be able to lease high-speed data lines and=20
other facilities from the Bells at current low rates in areas that lack=20
competition. For example, if no Bell rivals serve small businesses in a=20
certain block with their own lines, that would show that competitors need=20
to lease the Bells' lines there. In those cases, the discount leasing could=
=20
continue.
[SOURCE: USAToday, AUTHOR:Paul Davidson]
http://www.usatoday.com/printedition/money/20041104/fcc04.art.htm

NEW PUBLICATIONS

OPEN ARCHITECTURE AS COMMUNICATIONS POLICY
A collection of papers from speakers at a forum held on Capitol Hill=20
entitled Broadband Technology Forum: The Future Of The Internet In The=20
Broadband Age. They seek to provide a comprehensive basis for understanding=
=20
the interaction of technology and public policy in the development of the=20
Internet. The papers address three aspects of the environment in which the=
=20
Internet was created and flourished -- technology, economy and law.
[SOURCE: , EDITOR: Mark Cooper, Consumer Federation of America]
http://cyberlaw.stanford.edu/blogs/cooper/archives/openarchitecture.pdf

ILLINOIS ONLINE
Broadband -- a transmission channel of sufficient capacity to effectively=20
deliver advanced information applications and services via the Internet --=
=20
is an infrastructure that is critical to the economic development prospects=
=20
of Illinois cities and rural communities. Although the full extent of the=20
problem is unknown, it is clear that many smaller Illinois towns and rural=
=20
areas, as well as selected areas within the state=92s metropolitan centers,=
=20
currently lack access to broadband service despite ongoing rollout of=20
digital subscriber line (DSL) and cable modem services by=20
telecommunications companies and cable providers. In some cases, service is=
=20
available but not affordable. Areas that
remain without affordable service cannot be economically competitive. They=
=20
will have little to no success growing and attracting business activity to=
=20
replace declines in industries established prior to the Internet era.=20
Isolated rural communities are at particular risk because they lack the=20
option of capturing residential and commercial spillover growth from urban=
=20
centers. Without an active effort to encourage widespread broadband=20
deployment, Illinois will guarantee the decline of some of its rural=20
communities and increase the shift in the relative distribution of=20
population and business activity to urbanized areas. This report, the=20
result of a project commissioned by the Rural Affairs Council in the Office=
=20
of Lieutenant Governor Pat Quinn, discusses how to accelerate the=20
deployment of broadband in underserved communities in Illinois.
[SOURCE: Office of Rural Affairs, State of Illinois, AUTHOR: Edward Feser=20
and Timothy Green, University of Illinois at Urbana-Champaign]
http://www.state.il.us/ltgov/pdf/IllinoisOnline.pdf
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Benton's Communications-related Headlines for 11/03/04

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

TODAY'S QUESTION: How long did you stay up for a call on the election?
(12:30 central)

MEDIA & ELECTIONS
TV News Plays It Safe, Up to a Point
The Internet Changing Some Political Rules

MEDIA
Activists Push More Community Media
NAB Pans Public-Interest Inquiry
Political Coverage Boosts Cable News Nets
NAB Reiterates Need for EAS Selective Override
Can Radio Kill the Digital Music Star?

TELECOM
Agenda for Open Meeting Nov 9
Verizon Wireless OK with Nextel Swap

MEDIA & ELECTIONS

TV NEWS PLAYS IF SAFE, UP TO A POINT
The networks made it clear they were far more concerned with not fouling
things up last night, as they did in 2000, than with beating their rivals
by minutes with a "scoop" that might backfire. Calling states "red" or
"blue" was slow. But Fox News broke ranks with the other networks at 12:41
this morning, projecting President Bush as the winner in the crucial
battleground of Ohio and putting him just one electoral vote from winning
reelection.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A20507-2004Nov3.html
See also:
Red, Blue and Maybe: Timid Television
http://www.washingtonpost.com/wp-dyn/articles/A20661-2004Nov3.html
(requires registration)
Additional coverage --
Wall Street Journal
http://online.wsj.com/article/0,,SB109945558719163370,00.html?mod=todays...
USAToday
http://www.usatoday.com/printedition/news/20041103/a_media03.art.htm
LA Times
http://www.latimes.com/news/printedition/asection/la-na-tv3nov03,1,25183...
B&C: Net Face 2000 Redux
http://www.broadcastingcable.com/article/CA477628?display=Breaking+News&...

THE INTERNET CHANGING SOME POLITICAL RULES
[Commentary] The 2004 election marks the assimilation of the Internet into
our political system. Big media, big money and big institutions continue to
play a powerful, even dominant role and will for some time. But the Net,
the ultimate democratizing technology, has changed at least some of the
rules -- for politicians, media and, most important, for the voters.
Fundraising was the most important development, but the Net was also used
as an organizational tool as a more direct means for candidates to speak
with supporters. Bloggers came to the fore as media watchdogs. Some
political bloggers became media heavyweights in their own right, at least
among political journalists and activists. Josh Marshall's
TalkingPointsMemo.com is a must-read on the left; ditto for Glenn Reynolds'
Instapundit.com on the right. There's no doubt that the explosion of
new-media outlets is doing something profoundly useful for the voters. They
have many, many more ways to learn, and they're taking advantage of the
opportunity.
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
http://www.mercurynews.com/mld/mercurynews/business/technology/10086652.htm

MEDIA

ACTIVISTS PUSH MORE COMMUNITY MEDIA
The commercial interests of corporate media conglomerates have "eclipsed"
community needs, a coalition of media activists has told the FCC, and the
Commission should take several steps to boost broadcast localism. Those
steps include: 1) Assigning more broadcast licenses to nonprofit community
media, including youth media and low-power broadcasting. 2) Developing
regulations to ensure that commercial broadcasters provide local groups and
media producers with access to broadcast time and facilities. 3) Developing
new initiatives for expanding ethnic and racial diversity among broadcast
licensees. 4) Establishing mechanisms for supporting nonprofit community
media, including a "localism and diversity" fund supported in part by
licensing fees.
The coalition was led by the Consumer Federation of America and NYU School
of Law's Brennan Center for Justice.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA477559?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

NAB PANS PUBLIC-INTEREST INQUIRY
How much do we love the NAB? Let's count the ways. Way 4,987: In comments
filed at the FCC, the National Association of Broadcasters contend that by
examining the need for specific public interest obligations on
broadcasters, the Commission is walking down a path that is "unlawful,
unnecessary and fraught with peril." The FCC has questioned whether
stations should be required to air specific quantities of news, public
affairs, locally originated and children's programming. Supporters of the
idea say corporate consolidation has led broadcasters to increasingly
neglect their obligation to serve local audiences. The NAB contends that
small and low-rated stations would suffer most, particularly if saddled
with the extra cost of mandated newscasts. "The current economic realities
of the broadcasting business" make it extremely difficult for some stations
to produce local news. The lobbying group maintains that broadcasters can
discern local needs on their own. Those that fail their communities will
have low ratings and will go out of business. Mandates, however, can only
drive up stations' operating costs. However, Capitol Broadcasting, a
Raleigh (NC)-based station group, supports very detailed programming
obligations. For starters, Capitol suggests that stations be required to
ascertain their communities' needs, interests and problems by holding
face-to-face meetings with members of the community or through "town hall"
web casts. Capitol says the obligations would rejuvenate public support for
the industry and help stations differentiate themselves from cable and
satellite TV.
[SOURCE: Broadcasting&Cable, AUTHOR: William S Eggerton]
http://www.broadcastingcable.com/article/CA477557.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
The NAB's comments are available online at:
http://www.nab.org/Newsroom/PressRel/Filings/LocalismComs110104.pdf
http://www.nab.org/Newsroom/PressRel/Filings/LocalismComsExs110104.pdf

POLITICAL COVERAGE BOOSTS CABLE NEWS NETS
CNN, Fox News and MSNBC each gained dramatic year-to-year increases in
viewership as people tuned into for election coverage in October.
[SOURCE: TVWeek, AUTHOR: Michele Greppi]
http://www.tvweek.com/news.cms?newsId=6649

NAB REITERATES NEED FOR EAS SELECTIVE OVERRIDE
The National Association of Broadcasters wants the FCC to craft emergency
alert system (EAS) regulation that require cable operators to better
protect local broadcasters' emergency signals. In comments filed with the
FCC on EAS, NAB proposed a selective override in which the FCC mandates
that cable operators use a filter system enabling a cable operator to
replace certain channels selectively during an EAS interruption.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

CAN RADIO KILL THE DIGITAL MUSIC STAR?
Just as the iPod and other portable devices that hold songs copied from CDs
or downloaded from the Web begin to evolve with new functions like photo
storage, along comes a gadget that plays and records material from
satellite radio. The MyFi costs $350 in addition to XM's $9.99 monthly fee
for more than 130 channels of commercial-free programming. It can run for
five hours on a rechargeable battery and uses an antenna in its case to
draw down the satellite signals. The MyFi has a "memory mode" to store and
replay up to five hours of XM content. Users can record programs on the
spot or set up a timed recording of a show in advance. Like the TiVo, iPod
and other players, users can search stored content by artist or song title.
"If it works, the XM Radio portable is a much bigger deal than the latest
iPods," said Jupiter Research analyst David Card. "Think about it, just
about everybody listens to radio, while only about 60 percent of the U.S.
buys any music at all."
[SOURCE: Reuters, AUTHOR: Sue Zeidler]
http://www.reuters.com/newsArticle.jhtml;jsessionid=2KESSNFQ0Y3JUCRBAELC...

TELECOM

AGENDA FOR OPEN MEETING NOV 9
The FCC released its agenda for next Tuesday's open meeting yesterday.
Items include: 1) an International Bureau report on the recently completed
ITU World Telecommunication Standardization Assembly and the Commission's
participation in the conference, 2) rules changes for the 4.940-4.990 GHz
Band, 3) the Commission's local competition and broadband data gathering
program, and 4) a ruling on Internet telephone service (VoIP). Multichannel
News noted that the Commission will not be voting on a plan to speed the
transition to digital-only television broadcasting. FCC staff indicated
weeks ago that a vote on the digital-TV plan would likely be postponed
until December.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253922A1.doc
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA477515.html?display=Breaking+News
(requires subscription)

VERIZON WIRELESS OK WITH NEXTEL SWAP
Verizon Wireless on Tuesday withdrew its opposition to a plan that would
give Nextel Communications valuable new wireless airwaves, sending Nextel's
shares up as much as 5%. In return, Nextel said it would forego ownership
rights to the "push to talk" phrase used for its walkie-talkie style
feature, which Verizon Wireless and others have added to their services.
The move by Verizon Wireless, a venture of Verizon Communications and
Britain's Vodafone Group, to drop its objections to the spectrum swap plan
eliminates uncertainty that has plagued Nextel stock, one analyst said. "It
removes the largest hurdle to Nextel completing the spectrum swap," said
Charter Equity analyst Ed Snyder who noted that Verizon was one of the
plan's most vocal opponents. Verizon and Nextel said they had resolved all
legal disputes between the companies but did not disclose other terms of
their settlement in a statement issued Tuesday.
[SOURCE: C-Net|News.com, AUTHOR: Reuters]
http://news.com.com/Verizon+Wireless+OK+with+Nextel+swap/2100-1039_3-543...
Additional coverage:
Washington Post
http://www.washingtonpost.com/wp-dyn/articles/A18229-2004Nov2.html
Wall Street Journal
http://online.wsj.com/article/0,,SB109941002329062243,00.html?mod=todays...
New York Times
http://www.nytimes.com/2004/11/03/business/03phone.html
--------------------------------------------------------------
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.
--------------------------------------------------------------

Benton's Communications-related Headlines for 11/02/04

Please remember to vote today as we do in Chicago -- early and often.

Media for Democracy launched the MediaWatchBlog so Americans in all 50
states can protect our election process against election media abuses --
such as early and erroneous victory projections, and partisan reporting --
that might occur while Americans vote. File your reports on media coverage
here:
http://www.mediafordemocracy.us/ct/PdS3xBY1fpCi/http://www.citizensmedia...

AT STAKE TODAY
Kerry Win Could Extend FCC Gridlock
Regardless of Election, Changes Coming to Congressional Committees
Future of Federal Rulemaking Caught Up in Election

MEDIA & ELECTIONS
Pappas Decision Released
Last-Minute Campaign Ads Give Broadcasters a Boost
Docu-Trauma
Lessons From The Election (Already)

BROADCASTING
Free Press Challenges Sinclair Licenses
NAB Unveils New DTV-Carriage Plan
Noncoms Get Dough for Digital Archiving
Industry Moves Forward on Digital Radio

QUICKLY
How to Move the IP Era Out of Neutral
Wireless Carriers Protest Possible EAS Mandate

AT STAKE TODAY

KERRY WIN COULD EXTEND FCC GRIDLOCK
Legg Mason Wood Walker foresees girdlock at the FCC, if Sen Kerry wins
today's election. Analyst Blair Levin, a former FCC chief of staff, wrote
that leadership turnover at the agency, coupled with stalled nominations in
the Senate, could produce a deadlock that would prevent the FCC from
issuing new policies on a range of topics. The scenario assumes Republican
control of the Senate, two vacant seats on the Commission with Democrat
Michael Copps serving as chairman along with Republicans Kevin Martin and
Kathleen Abernathy. "Such a scenario could go for some time, likely
limiting the work the FCC could accomplish in 2005 and maybe beyond," Levin
wrote in a detailed report handicapping policy moves at the FCC if either
Kerry or President George W. Bush wins the election.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA476872.html?display=Breaking+News
(requires subscription)

REGARDLESS OF ELECTION, CHANGES COMING TO CONGRESSIONAL COMMITTEES
Turn and face the stranger Ch-ch-Changes. No matter what happens today,
ch-ch-changes are coming and the next Congress will have several new
legislators overseeing telecom and Internet law. The Baby Bells are losing
a few supporters and a noteworthy detractor thanks to retirement. In the
House, former Commerce Committee
Chairman Billy Tauzin (R-LA) is retiring, but has already given his
leadership seat to current Chairman Joe Barton (R-TX). In the Senate, Bell
supporter Breaux (D-LA) is retiring as is critic Hollings (SC). The Senate
Commerce Committee is also losing Sen Fitzgerald (R-IL) and could lose Sen
Kerry (we should know by Thanksgiving). Regardless of the election's
outcome, as current Chairman McCain (R-AZ) must resign the chairmanship due
to term limits. If Republicans maintain the Senate, Sen Stevens (R-Alaska)
is expected to take the seat. If Democrats regain the Senate, Sen Inouye
(D-Hawaii) will likely be the Committee Chairman.
[SOURCE: Communications Daily, AUTHOR: Terry Lane & Bowie]
(Not available online)

FUTURE OF FEDERAL RULEMAKING CAUGHT UP IN ELECTION
The war in Iraq, terrorism and the economy (stupid). These are the big
issues on voters' minds today. But how do the candidates differ on their
approach to regulation? President Bush addresses regulation as part of his
"Plan for Creating Opportunity for America's Workers." He promises to
reduce the regulatory "burden" by continuing to insist on good science and
economics; making sure new rules are flexible and don't harm small
business; and streamlining existing rules and paperwork requirements. He
advocates tax credits and market incentives to address energy needs and
environmental challenges. It's harder to discern Sen Kerry's overall
philosophy of regulation. But past votes in the Senate and positions he has
taken on domestic issues indicate he would use the regulatory tools
available to him more often. He would push more funding for the Superfund
program to clean up polluted industrial sites. He promises to reverse the
recent rule determining eligibility for overtime, push for deep reductions
in mercury emissions, increase fuel-efficiency standards and institute a
mandatory federal standard to prevent repetitive-motion injuries on the
job. "He understands you don't need to over-regulate, but he believes in
basic protections. There is a role for government. He'll get everyone to
the table and find the right balance," said Sarah Bianchi, policy director
for the Kerry campaign.
Sure -- the future of regulation -- now we've got your blood pumping and
all of a sudden you are interested in this election.
[SOURCE: Washington Post, AUTHOR: Cindy Skrzycki]
http://www.washingtonpost.com/wp-dyn/articles/A17353-2004Nov1.html
(requires registration)

MEDIA & ELECTIONS

PAPPAS DECISION RELEASED
Pappas Telecasting is complying with the FCC's equal-time ruling but hasn't
ruled out appealing the decision to the full Commission, Communications
Daily reports. The ruling came as no surprise to Media Access Project
President Andrew Schwartzman, who called Pappas' action "absurd."
Schwartzman said the Pappas incident was reflective of broadcasters'
election actions. "This is an accumulative affect of broadcasters thinking
the FCC no longer cares what they do. I'm glad to say they're wrong," he said.
The FCC has released its decision on Pappas decision to offer free air time
to California candidates. Titled "In the Matter of Equal Opportunities
Complaint Filed By
Nicole Parra Against Pappas Telecasting Companies." DA 04-3494
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-3494A1.doc
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)
Broadcasting&Cable covered the decision Monday morning. See
http://www.broadcastingcable.com/article/CA476775.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

LAST-MINUTE CAMPAIGN ADS GIVE BROADCASTERS A BOOST
Most political ad spending is on local TV. Over the past week, about $57
million has been spent on broadcast TV commercials related to the
presidential race, representing more than one-quarter of the $200 million
spent on such ads in the entire 2000 race. Florida, Pennsylvania, Ohio and
Michigan have seen much of that spending and TV station owners like Media
General, E.W. Scripps, the Washington Post, Gannett and Meredith should
profit from it.
[SOURCE: Reuters, AUTHOR: Martha Graybow ]
http://www.reuters.com/newsArticle.jhtml?type=televisionNews&storyID=668...

DOCU-TRAUMA
Although a big part of the story of the 2004 election, political
documentaries, many made by first-time filmmakers, have fared poorly at the
cineplex with the exception of Michael Moore's "Fahrenheit 9/11" ($119
million domestic box office). "It seems like people might be talking about
these movies more than seeing them," says Robert Stone, the filmmaker
behind the upcoming "Guerrilla: The Taking of Patty Hearst." "They seem to
lack artistry or story. They're right in your face," he says. "I think
there is a feeling of burnout." See a discussion of films you should feel
guilty you didn't see before voting at the URL below.
[SOURCE: Washington Post, AUTHOR: William Booth]
http://www.washingtonpost.com/wp-dyn/articles/A17419-2004Nov1.html
(requires registration)

LESSONS FROM THE ELECTION (ALREADY)
This election has taught us lessons about network technology and a new form
of interaction between candidates, citizens and the media. 1) Targeting and
mobilizing a specific grassroots demographic can have advantages not just
in viral, on-the-ground organization but in practical terms for raising
money. 2) The Internet was used to test and distribute ads, but the bulk of
candidates' financial resources is still used to buy television time,
particularly in the closing stages of the campaign. So far, an estimated
$526 million has been spent in the country's top 100 television
markets--and with so many states still in play, that relentless torrent of
over-exposure, enriching no one but the broadcasters, will continue right
up to the wire. 3) The function of the journalist, particularly on cable
news stations, has become almost reduced to that of a mere referee between
two talking--or more frequently, shouting--heads as they go at it with
often scant regard for the factual accuracy of their talking points. To
counter this has been the growth of independent fact-checking sites, a true
manifestation of how the Internet is facilitating the evolution of a new
intellectual gathering place.
There's more at the URL below.
[SOURCE: Forbes.com, AUTHOR: Steve McGookin]
http://www.forbes.com/columnists/2004/11/01/cz_sm_1101mcgookin.html
The NYTimes asked bloggers what the most important moment in the election
was. See their answers at:
http://www.nytimes.com/2004/11/02/opinion/02blogger-final.html
The NYTimes also has an article about what advertisers learned from the
election:
http://www.nytimes.com/2004/11/02/business/media/02adco.html

BROADCASTING

FREE PRESS CHALLENGES SINCLAIR LICENSES
On Monday, media activist Free Press asked the FCC to revoke some TV
licenses controlled by the Sinclair Broadcasting Group. Free Press alleges
that Sinclair is illegally operating duopolies in Asheville (NC) and
Charleston (SC) in conjunction with local marketing agreement partner
Cunningham Broadcasting. Eight station licenses are at stake including
Sinclair stations WXLV Winston-Salem (NC), WUPN Greensboro (NC), WLFL
Raleigh (NC), WRDC Durham (NC), WLOS Asheville (NC), and WMMP Charleston
(SC). Free Press also opposes renewals of Cunningham stations WBSC
Asheville (SC), and WTAT Charleston (SC). Free Press accuses Cunningham of
being "a sham owner" that has "relinquished complete economic and editorial
control of its stations to Sinclair." Carolyn Smith, mother of Sinclair CEO
David Smith, is the controlling shareholder of Cunningham. Free Press also
charged that Sinclair ignores its obligations to provide programming that
serves the local interests of its stations' communities. In some markets
Sinclair has cut news operations and relied on regional and national feeds
from its News Central operations in Baltimore for much of its news
programming. The FCC is in the middle of a multi-staged review of TV
licenses that will continue through 2007. Petitions to deny renewals of
North and South Carolina stations were due Monday. Licenses in those states
expire Dec. 1.
B&C is also reporting that Common Cause and Free Press asked the FCC to
deny renewal of the television license of WBTW in Florence, South Carolina.
The station owner, Media General, has filed a license renewal application
and a request for a permanent waiver to own both WBTW and the only local
daily newspaper, the Florence Morning News, in violation of the FCC's
newspaper-broadcast cross-ownership rule.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA476949.html?display=Breaking+...
http://www.broadcastingcable.com/article/CA477016.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
Additional coverage:
Watchdog Group to File Petitions Against Sinclair
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=6636
Group Challenges Sinclair Licenses
[SOURCE: Los Angeles Times, AUTHOR: Walter F. Roche Jr.]
http://www.latimes.com/news/printedition/asection/la-na-sinclair2nov02,1...
(requires registration)

NAB UNVEILS NEW DTV-CARRIAGE PLAN
The National Association of Broadcasters has unveiled a new
digital-TV-carriage plan that would deny cable systems the unfettered
freedom to convert digital-TV signals to analog at the headend in order to
protect consumers without digital sets or set-tops. The plan would mandate
that by the end of the transition to digital TV, cable systems would be
required to transmit digital-TV signals from the headend to consumer homes.
After that threshold had been met, the NAB would leave cable two choices:
Either provide set-tops to consumers with analog-TV sets or send
downconverted analog signals to satisfy subscribers with analog sets who do
not want set-tops. "Thus, any plan to end the transition and return analog
spectrum must ensure that all consumers are able to receive, at their TV
set, the full program offerings provided by free over-the-air broadcast
service," the NAB said. The NAB added that TV-spectrum-auction proceeds
should be tapped to defray the cost of conversion equipment for analog-only
consumers.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA476704.html?display=Breaking+News
(requires subscription)
See more coverage:
Broadcasters Ask FCC to Modify Digital Conversion Plan
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=6634
Broadcasters Offer Own Ferree TV Plan
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA477015?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

NONCOMS GET DOUGH FOR DIGITAL ARCHIVING
The Library of Congress' National Digital Information Infrastructure and
Preservation Program (NDIIPP) is granting nearly $3 million to a
partnership of WNET New York and WGBH Boston (the two largest PBS' program
suppliers), PBS; and New York University to help archive and preserve
digital, noncommercial television programming and related Web content. The
library is trying to prevent the sort of wholesale losses of TV programming
that typify the early days of analog television, when many live shows were
not recorded, or if they were, the recordings were eventually destroyed for
lack of space and interest.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA476878.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

INDUSTRY MOVES FORWARD ON DIGITAL RADIO
The radio industry is moving ahead with plans to convert to digital
technology. There's wide agreement on the industry's need to settle on
technical standards for HD Radio, a task before the National Radio Systems
Committee (NRSC), formed by National Association of Broadcasters and the
Consumer Electronics Association. "The rules and standards in some ways are
as important as the technology," said David Layer, NAB Science & Technology
Department Engineering Director. The failure of AM stereo is proof that
failure to unify on standards would be disastrous, he says. Of the digital
radio transition, Layer said, "Everyone wants it to be market-driven. No
one wants the government to tell them when to switch their signal." The
opportunity to split the digital audio channel into multiple programming
streams, or add data, is intriguing for new revenue opportunities, Lyons
said. "Real-time traffic is probably the hottest button or hottest feature
being discussed within the auto industry," he said, referring
to information provided by displaying maps and text alerts.
[SOURCE: Communications Daily, AUTHOR: Louis Trager]
(Not available online)

QUICKLY

HOW TO MOVE THE IP ERA OUT OF NEUTRAL
[Commentary] Congress seems poised to begin a rewrite of telecommunications
laws next year and one of the first things it is likely to do is take a
close look at the existing system of "silos" that has governed the
communications sector for decades. These inflexible divisions assume clear,
unwavering distinctions, but in today's Internet-based world, the lines
between various services and technologies are quickly blurring. If our
legal thinking and structures are not adapted to technology and
market-driven realities, future competition and innovation will be stifled.
MCI advocates replacing silos with four software-derived data layers:
first, the physical layer, which represents the physical infrastructure
(for example, copper lines); second, the logical layer, which connects the
physical infrastructure (for example, Internet Protocol); third, the
applications layer (for example, Web browsers); and fourth, the content
layer (for example, the words in this brilliant summary). The framework's
guiding principle seeks to fit our laws and regulations to the ways that
the Internet is constructed and operated, rather than the other way around.
The proposal looks to the existence of significant market power as the
chief rationale for economic regulation. Conversely, the presence of
competition in a particular network layer means that no such regulation is
warranted.
[SOURCE: C-Net|News.com, AUTHOR: Richard Whitt, MCI]
http://news.com.com/How+to+move+the+IP+era+out+of+neutral/2010-1071_3-54...

WIRELESS CARRIERS PROTEST POSSIBLE EAS MANDATE
Wireless carriers told the FCC they shouldn't be forced to transmit
emergency messages through text messages on mobile phones. Led by CTIA,
carriers noted that efforts to develop a more effective Emergency Alert
System (EAS) were under way and a voluntary approach would work best.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
--------------------------------------------------------------
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.
--------------------------------------------------------------

Benton's Communications-related Headlines for 11/01/04

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

MEDIA/TECHNOLOGY & ELECTIONS
FCC Decides on Pappas
Anti-Kerry Film Gets Vast Airing
Profiting From Politics
Media Timing and the October Surprise
Stung by Miscalls in 2000, Networks Gird for Accuracy in '04
NAB Poll Finds Public Satisfied With Amount of Election Coverage
For Undisconnectables, Tomorrow May Bring Relief From Obsession
Media Consolidation Seen on Menu in Election
Empty Promises and Tech's Future

MEDIA POLICY
FCC Raps Station Knuckles Over Ads
In High Spirits
Fox Affils Fume Over Fine
Canadian Court Ruling Would Lift Restrictions on U.S. DBS
Even in Information Age, China Keeps Rein on Media

TELECOM
Rural-Phone Subsidy's Shortfall Could Be Costly for Consumers
Legislative Help Sought to Fix Universal Service Accounting
AWS Shows Reallocation Still Too Slow, Thomas Says

PREVIOUSLY REPORTED ELSEWHERE
Broadcast Industry Increases Lobbying Budget, Study Says
The TV That Sent Out a Cry for Help, via Satellite

MEDIA/TECHNOLOGY & ELECTIONS

FCC DECIDES ON PAPPAS
Several California Democrats filed a complaint with the FCC last week=20
saying Pappas Telecasting violated federal equal time rules by offering=20
free air time to GOP candidates in one CA county and to Democratic=20
candidates in another county, while requiring opposing candidates to=20
request and pay for an equivalent
amount of air time. The FCC made a ruling on the Pappas case on Friday. It=
=20
found that the broadcast time that has been made available to one candidate=
=20
was furnished free of charge by the Pappas stations. The Commission has=20
ruled that when a candidate is furnished time at no cost, competing=20
candidates are entitled to receive the same amount of free time in=20
comparable time periods. Thus, under these circumstances, the FCC finds=20
that the opposing candidate is entitled to equal opportunities on the same=
=20
free basis as her opponent.
[SOURCE: FCC]
http://www.fcc.gov -- (decision not yet available online)
AP covered the decision, see:
http://www.oaklandtribune.com/Stories/0,1413,82~1865~2502509,00.html#
See also:
FCC: Pappas Issue Still Open
FCC Media Bureau Chief Ken Ferree said Friday that the Commission has made=
=20
"no decision regarding the equal-time requirements in the matter of Pappas=
=20
Telecasting." Pappas' suggestion to the contrary in a press release is=20
"completely false," according to FCC spokeswoman Rebecca Fisher.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA476432.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

ANTI-KERRY FILM GETS VAST AIRING
Conservative media group NewsMax bought infomercial time on the broadcast=20
network Pax to show "Stolen Honor: Wounds That Never Heal," the anti-Sen.=20
John F. Kerry film that caused a furor when the Sinclair Broadcast Group=20
planned to televise it before the election. The Pax network reaches 90% of=
=20
US homes. In addition, NewsMax paid for airings on select TV stations=20
affiliated with other networks, but it didn't name them. Some stations=20
airing the film over the weekend were owned by Sinclair, according to=20
viewer complaints on several websites. The NeqwsMax website, which=20
describes the company as a "for-profit corporation dedicated to informing=20
Americans to the truth the major media won't report," has been soliciting=20
donations to pay for the "Stolen Honor" airings. It was not disclosed how=20
much it paid.
[SOURCE: Los Angeles Times, AUTHOR: Elizabeth Jensen]
http://www.latimes.com/news/printedition/asection/la-na-stolen1nov01,1,1...
00.story?coll=3Dla-news-a_section
(requires registration)

PROFITING FROM POLITICS
With many local stations pulling back on political coverage, regional 24-hr=
=20
news cable channels are establishing themselves as the comprehensive source=
=20
for presidential, state and local races this year. On election night, the=20
regional networks are counting on historically high ratings to snag an even=
=20
bigger crop of viewers and grab advertisers' attention. Regional operations=
=20
aim to hook political junkies with updates on nearly every state and local=
=20
race=97results that TV stations miss because the bulk of their Election=
Night=20
results come from national network feeds. The regional channels aren't=20
banking on a simple one-night bump in the ratings, however. Throughout the=
=20
2004 campaign season, they've rolled out a slew of segments intended to=20
differentiate themselves from local broadcasters and the national cable=
nets.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell ]
http://www.broadcastingcable.com/article/CA476535.html?display=3DTop+of+...
Week&referral=3DSUPP
(free access for Benton's Headlines subscribers)

MEDIA TIMING AND THE OCTOBER SURPRISE
Last Monday, The New York Times and CBS News reported that the Iraqi=20
interim government had warned the United States and international nuclear=20
inspectors that nearly 380 tons of powerful conventional explosives were=20
missing from the Qaqaa munitions facility in Iraq. In the ensuing uproar=20
over the revelations, charges of journalistic impropriety and partisanship=
=20
fly and many question whether the news media should report something so=20
controversial so close to Election Day. There are no firm rules guiding=20
news organizations through these journalistic minefields. Some journalists=
=20
have no compunction about printing or broadcasting controversial news about=
=20
a political candidate in the last weeks of an election campaign. Others=20
apply calculus to their deliberations, trying to determine the equation of=
=20
topic, distance and fairness. Still others refuse to run any investigative=
=20
articles in the week, or sometimes in the last two days, before the=
election.
[SOURCE: New York Times, AUTHOR: Jacques Steinberg & David Carr]
http://www.nytimes.com/2004/11/01/business/media/01media.html
(requires registration)

STUNG BY MISCALLS IN 2000, NETWORKS GIRD FOR ACCURACY IN '04
This year's Election Day coverage by TV networks will focus on getting it=20
right, not getting it first. The networks have revamped the way they=20
collect and analyze polling data, using more sophisticated equipment and=20
better communications. To tone down their competitive instincts in=20
"calling" states for either candidate, some are blocking their news desks=20
from watching rivals' shows. All the networks are also striving to get=20
their respective "decision desks" -- the units that make the calls -- to=20
work more closely with the producers and reporters so information doesn't=20
fall through the cracks. If the new system works the way it is supposed to,=
=20
throughout Election Day, pollster interviewers will speak to voters as they=
=20
leave about 1,500 precincts, asking them whom they voted for and why. The=20
"why" part will be analyzed later, but the "whos" will be tallied and=20
shipped out to give news organizations a first look at where the race is=20
headed.
[SOURCE: Wall Street Journal, AUTHOR: Joe Flint joe.flint( at )wsj.com &=20
Shailagh Murray shailagh.murray( at )wsj.com]
http://online.wsj.com/article/0,,SB109926950781860736,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
See also:
'04 Election Has Local Roots
Election night coverage has traditionally been network-centric, but this=20
year's coverage will include more contributions from local stations than=20
ever, particularly in contested states.
[SOURCE: TVWeek, AUTHOR: Daisy Whitney]
http://www.tvweek.com/article.cms?articleId=3D26411

NAB POLL FINDS PUBLIC SATISFIED WITH AMOUNT OF ELECTION COVERAGE
Almost 90% of the public believe local broadcasters are providing enough --=
=20
or even too much -- coverage of the 2004 elections, according to a poll=20
sponsored by the National Association of Broadcasters. The poll found that=
=20
42% of adults believe local radio and TV stations have been spending too=20
much time covering the elections, while 47% said the amount of time was=20
about right. In addition, 48% of the respondents cited local broadcast=20
coverage as the most helpful medium for their selection of candidates,=20
compared with 24% who picked cable TV news coverage, 9% who cited=20
newspapers, and 1 percent citing broadcast advertising. The survey also=20
found that the public opposes mandatory free airtime for political=20
candidates, 69% to 28%.
See NAB press release at=20
http://www.nab.org/newsroom/pressrel/Releases/102904electioncoveragepoll...
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=3D6630

FOR UNDISCONNECTABLES, TOMORROW MAY BRING RELIEF FROM OBSESSION
[Comentary] The one aspect of the Web and the 2004 election that no one saw=
=20
coming is the extent to which so many people would become utterly obsessed=
=20
with following the race online -- to the point where they're incapable of=20
disconnecting from their Web browsers for fear of missing the latest poll,=
=20
the most recent blog posting, the latest headline at Yahoo News. Gomes=20
calls this faithful few "the Undisconnectables." There is no Kinsey Report=
=20
estimating the Undisconnectable population in this country. But it is a=20
safe bet that U.S. productivity will surge on Wednesday, when all of them=20
delete the likes of electoral-vote.com from their lists of browser=20
favorites and get back to work. (Assuming, of course, that the election is=
=20
decided by then.) The lesson here is that if people have access to=20
information, they will consume it, whether they are hungry or not. What's=20
more, Undisconnectables can claim that they aren't just passively observing=
=20
the election, they are also helping shape it. The Bush blogosphere played a=
=20
major role in forcing CBS to backtrack on the Bush National Guard memos.=20
Liberal bloggers took the lead in putting pressure on Sinclair Broadcasting=
=20
to modify its plans to show a documentary critical of John Kerry.
[SOURCE: Wall Street Journal, AUTHOR: Lee Gomes]
http://online.wsj.com/article/0,,SB109926556403660662,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)
See also:
Blogs Play Critical Role in Campaigns
[SOURCE: C-Net|News.com, AUTHOR: John Borland ]
http://news.com.com/Blogs+play+critical+role+in+campaigns/2100-1028_3-54...
9.html?tag=3Dnefd.hed
Political Jihads and the Blogosphere [Commentary]
[SOURCE: C-Net|News.com, AUTHOR: Charles Cooper ]
http://news.com.com/Political+jihads+and+the+blogosphere/2010-1028_3-543...
.html
Political Spam Permeates Internet, Influences Voters
[SOURCE: USAToday, AUTHOR:Jon Swartz]
http://www.usatoday.com/printedition/money/20041101/2b_electionspam01.ar...
m

MEDIA CONSOLIDATION SEEN ON MENU IN ELECTION
Media and telecommunications mergers would likely face greater scrutiny by=
=20
the FCC if Sen. John Kerry wins next week's presidential election, industry=
=20
analysts and lobbyists say. If President Bush is reelected, these experts=20
expect the FCC to continue freeing companies from regulation and pushing=20
competition between cable, wireless, telephone and satellite systems,=20
rather than within each mode. No matter who wins, the next president is=20
seen getting a chance to reshape the five-member FCC due to the expected=20
departure of Chairman Michael Powell, but it's unclear who Bush or Kerry=20
would select to replace him.
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://www.reuters.com/newsArticle.jhtml?type=3DreutersEdge&storyID=3D66...
6
See also:
Powell for President
Regardless of who wins Tuesday=92s presidential election, FCC Chairman=20
Michael Powell is likely to leave his post next year -- as soon as January=
=20
if Sen. John Kerry (D-Mass.) prevails and names a Democrat to run the=
agency.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA476173?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

EMPTY PROMISES AND TECH'S FUTURE
[Commentary] Making promises about technology is far easier than making=20
them happen. Whoever is elected President will still have to deal with that=
=20
testy body down Pennsylvania Ave called Congress. And possible spending on=
=20
technology will be curbed by pressures to decrease the federal debt.=20
"[A]nyone governing in an era of perpetual gridlock isn't likely to be able=
=20
to do more than talk about bold new federal spending programs, tech-related=
=20
or otherwise."
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Empty+promises+and+techs+future/2010-1028-5432950.html

MEDIA POLICY

FCC RAPS STATION KNUCKLES OVER ADS
Fox-owned UPN affiliate WDCA and Tribune-owned WB affiliate WBDC in=20
Washington, DC were admonished by the FCC Friday for violating ad limits=20
during children=92s shows. WDCA was criticized for two instances in 2002=
when=20
the station aired commercials for cereal containing the animated character=
=20
Buzz Lightyear during the program of the same name. That=92s what the FCC=20
calls a =93program-length commercial=94 and forbids because kids won't=20
necessarily differentiate between the ad and show. Last month, the United=20
Church of Christ (UCC) and the Center for Digital Democracy asked the FCC=20
to deny WDCA=92s license renewal for failing to serve the educational
needs of children. WBDC was similarly criticized for two violations in 1999=
=20
and 2004, which together totaled 1 minute 15 seconds in overages. The FCC=20
actions are just reprimands, and no fines will be levied.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA476519.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
[SOURCE: Communications Daily]
(Not available online)

IN HIGH SPIRITS
The liquor industry's self-regulated moratorium on TV ads is a thing of the=
=20
past and now cable is profiting from it. To evade the wrath of advocacy=20
groups and government regulators who worry about reaching underage=20
consumers, sellers have reined in their broadcast purchases=97on both TV and=
=20
radio. The amount of broadcast ad dollars devoted to spirits is dwindling,=
=20
but the amount spent on cable is rising at a time when overall ad spending=
=20
in the liquor industry is flat. Broadcasters make it difficult to buy time=
=20
for hard liquor; cable networks make it easy, particularly E!, FX and=20
Bravo, which reach viewers in their 30s and 40s. Groups that fret about the=
=20
impact of TV spots on underage drinkers have pressured lawmakers to stop=20
the practice, even though other forms of alcohol advertising -- especially=
=20
beer marketing -- have flowed with impunity. Unlike spirits makers, beer=20
has no NAB codes, no laws and no alcohol self-regulatory guidelines to=
follow.
[SOURCE: Broadcasting&Cable, AUTHOR: Joe Mandese]
http://www.broadcastingcable.com/article/CA476541.html?display=3DTop+of+...
Week&referral=3DSUPP
(free access for Benton's Headlines subscribers)

FOX AFFILS FUME OVER FINE
Fox affiliates think they have grounds to escape their share of a $1.18=20
million fine the FCC proposed against stations that aired Fox program=20
"Married by America." The affiliates contend that the show was just a=20
satellite feed that they had no chance to review before airing. The=20
stations feel they should be exempt from the $7,000 FCC fine just like CBS=
=20
stations were exempt in the Janet Jackson/Super Bowl incident. Fox=20
affiliates haven't yet filed a formal appeal, which is due Nov. 12.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA476244?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

CANADIAN COURT RULING WOULD LIFT RESTRICTIONS ON US DBS
A judge in Quebec has ruled that sections of Canada=92s Radiocommunication=
=20
Act that make selling technology that allows Canadians to access U.S.=20
satellite signals a federal offense violates the Canadian Charter of Rights=
=20
& Freedoms. A DirecTV spokesman said it =93will have no bearing on our=20
ability to legally provide satellite TV service to Canadians, and in any=20
case, we generally do not have the rights from programmers to distribute=20
their content in Canada.=94
[SOURCE: Communications Daily, AUTHOR: Carla Pasternak, Darren Maas,=20
Jeanene Timberlake, Mark Seavy]
(Not available online)

EVEN IN INFORMATION AGE, CHINA KEEPS REIN ON MEDIA
Despite the rapid pace of reform in China over the last 25 years that has=20
produced rich capitalists and a much freer social climate, information has=
=20
remained tightly controlled government property. The country's 1.3 billion=
=20
people still have the right to know only what the Communist Party's=20
publicity department says they should, particularly on sensitive topics=20
such as Taiwan and the doings of senior leaders. Journalists for major=20
Chinese publications, particularly those who deal directly with=20
national-level censors in Beijing, say the reins have loosened in recent=20
years, allowing more reporting in vanguard newspapers and magazines and on=
=20
Web sites. But the party's power ultimately to decide what is reported,=20
exercised with particular stringency regarding television and local papers,=
=20
has remained intact even in the information age.
[SOURCE: Washington Post, AUTHOR: Edward Cody]
http://www.washingtonpost.com/wp-dyn/articles/A14707-2004Oct31.html
(requires registration)

TELECOM

RURAL-PHONE SUBSIDY'S SHORTFALL COULD BE COSTLY FOR CONSUMERS
The Universal Service Fund, established in the 1930s to ensure rural areas=
=20
the same quality phone service as urban centers, is expected to spend about=
=20
$6.5 billion in 2004 to subsidize phone service to rural and low-income=20
customers, as well as to connect schools, libraries and rural health-care=20
facilities to the Internet. The fund's monies are based on the phone=20
industry's long-distance revenue, which totals roughly $16 billion=20
quarterly. But the fund faces a $575 million shortfall early next year that=
=20
phone companies -- and ultimately consumers -- likely will have to make up=
=20
unless another solution is found. In the second quarter of 2005, the=20
shortfall amount would total about $425 million and the situation could get=
=20
worse if Congress doesn't get involved, says Universal Service=20
Administrative Corporation (USAC) Chairman USAC Chairman Frank Gumper.=20
USAC, the not-for-profit corporation that handles billing and other=20
administrative tasks for the fund, plans to ask federal regulators to boost=
=20
to approximately 12.5% from 8.9% the percentage of long-distance revenue=20
that phone companies contribute to the fund.
The latest difficulties stem from an administrative decision last year to=20
bring the USAC's accounting system in line with that of the Federal=20
Communications Commission, which oversees its activities. In doing so, the=
=20
FCC found the USAC was subject to a little-known federal law called the=20
Anti-Deficiency Act, which prohibits federal agencies from incurring=20
financial obligations in excess of money in hand. Before, the USAC was=20
required to have the money available only when a school system or library=20
submitted an actual invoice for work completed, which can be years after=20
they initially request funds.
[SOURCE: Wall Street Journal, AUTHOR: Anne Marie Squeo=20
annemarie.squeo( at )wsj.com]
http://online.wsj.com/article/0,,SB109927048668560771,00.html?mod=3Dtoda...
s_page_one
(requires subscription)

LEGISLATIVE HELP SOUGHT TO FIX UNIVERSAL SERVICE ACCOUNTING
Although the board of the Universal Service Administrative Company (USAC)=20
is prohibited from lobbying, its members are meeting with state regulators,=
=20
telecom industry executives and education groups seeking support for a=20
legislative fix to the E-rate accounting problem. A change in USAC=92s=20
accounting required by the Office of Management & Budget has resulted in a=
=20
loss of funds, a possible increase in the amount of money carriers will=20
have to pay into the Universal Service Fund (USF) and possible shortfalls=20
in funding for rural telephone companies, schools and libraries. USAC Board=
=20
Chairman Frank Gumper said two changes led to the problems: 1) USAC=92s=20
switch Oct. 1 from traditional Generally Accepted Accounting Principles=20
(GAAP) to a federal version known as GovGAAP and 2) the FCC=92s decision in=
=20
Sept. to apply the Anti-Deficiency Act (ADA) to USAC. The legislative goal=
=20
is to gain a USAC exemption from the ADA, possibly by adding a provision in=
=20
the omnibus appropriations bill.
Mr. Gumper said there=92s precedent for such an exemption for specific=20
agencies, such as the Federal Highway Trust Fund and the U.S. Information=20
Agency.
[SOURCE: Communications Daily, AUTHOR: Edie Herman]
(Not available online)

AWS SHOWS REALLOCATION STILL TOO SLOW, THOMAS SAYS
FCC Office of Engineering & Technology Chief Edmond Thomas said the=20
Commission=92s
proposed advanced wireless services (AWS) auction dramatically demonstrates=
=20
the need to reform how the FCC reallocates spectrum between the government=
=20
and private sectors. Thomas told the Department of Defense Spectrum Summit=
=20
on Friday that the 90 MHz reallocation -- 45 MHz of which is coming from=20
government spectrum, possibly through federal legislation -- has taken far=
=20
too long. =93The commercial guys always want more spectrum,=94 Thomas said:=
=20
=93The federal guys always want more spectrum and it takes an act of God to=
=20
move spectrum back and forth.=94 Thomas said of the AWS item, =93We started=
the=20
process in 1993. It took well over 10 years to do it and it=92s not over=20
yet... That=92s not a way to run a railroad.=94 Thomas told the DoD spectrum=
=20
managers that =93sharing=94 of spectrum will become a way of life for them.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)

PREVIOUSLY REPORTED ELSEWHERE

Broadcast Industry Increases Lobbying Budget, Study Says
http://www.nytimes.com/2004/11/01/business/media/01lobby.html

The TV That Sent Out a Cry for Help, via Satellite
http://www.nytimes.com/2004/11/01/technology/01signal.html
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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.
--------------------------------------------------------------