December 2004

Groups Join Forces to Advocate for Media Reform
The Alliance for Better Campaigns and the Campaign Legal Center's Media
Policy Program will merge in early 2005. The Alliance, in its new role as
the Legal Center's Media Policy Program, will continue advocating for legal
and policy reforms that reduce the cost and increase the flow of political
communication on the nation's publicly owned airwaves. It will also help
shape political broadcasting policy by promoting awareness and enforcement
of political broadcasting laws through FCC rulemaking proceedings,
congressional action and public education. Meredith McGehee, who currently
leads the Alliance, will become the director of the Legal Center's Media
Policy Program. The Campaign Legal Center is a nonpartisan, nonprofit group
working to improve and enforce the nation's campaign finance,
communications and government ethics laws.
[SOURCE: Alliance for Better Campaigns Press Release]
http://bettercampaigns.org/press/release.php?ReleaseID=67

BROADCASTING
FCC Finds Room for Faith
U.S. Bans Al-Manar, Says TV Network Backs Terror
Trust Fund Possible Only with New Unity and Broad Support
High Bidding Keeps Pubradio on Sidelines in FCC Auctions

JOURNALISM
Gallup: Online News Hasn't Beaten Old Media -- Yet
Learn from the Bloggers, My Children
Washington Post Co. Buying Web Magazine Slate

INTERNET
A National Telephone Tax?
SBC Would Like to Disconnect Broadband Plan
Competitive Industry Speaks Against BellSouth Forbearance Petition
U.S. Judge Refuses to Accept Guilty Plea on Spam
SuprNova Closes Amid Hollywood Crackdown

CABLE
SBC'S IP-Based Video Subject to Franchise Rules, Say City Lawyers
Cable Wants to Keep Dual Boxes

A SIT-DOWN WITH... FCC Chairman Michael Powell; NBC Universal head Bob Wright

BROADCASTING

FCC FINDS ROOM FOR FAITH
DBS operators were required in 1998 to set aside 4% of their channel
capacity for public interest programming and on Tuesday the FCC ruled that
noncommercial, religious channels can count towards that obligation. Media
Bureau Chief Ken Ferree dismissed a complaint brought by the Secular
Coalition for America. The group had argued that setting-aside space for
religious programmers violates the constitutional ban on government
endorsement of religion because the channels are publicly subsidized. The
FCC countered, however, that there is no direct public subsidy, and that
permitting the channels to count toward the set-aside quota does not
constitute a government bias in favor of religious programming.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA489733.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

US BANS AL-MANAR, SAYS TV NETWORK BACKS TERROR
State Department officials placed the satellite television network
Al-Manar, one of the most popular television networks in the
Arabic-speaking world, on its Terrorist Exclusion List on Friday because of
what they described as its incitement of terrorist activity. The
designation means foreign nationals who work for the network, run by the
Lebanese militant group Hezbollah, or provide it any support can be barred
from the United States. The U.S. action had the effect of banning al-Manar
in the United States, where its programming had been beamed via GlobeCast,
a company that sells access to foreign television programs by satellite.
"As of Friday last week, that channel is no longer on the satellite," a
GlobeCast spokesman said. "It's not a question of freedom of speech," State
Department spokesman Richard A. Boucher said. "It's a question of
incitement of violence. We don't see why, here or anywhere else, a
terrorist organization should be allowed to spread its hatred and
incitement through the television airwaves." Osama Siblani, publisher of
the Arab American News, a newspaper in Dearborn (MI), said al-Manar is
popular in this country in part because of its strong support for
"resistance against Israeli occupation." "I disagree with the State
Department that it incites violence," he said. "By that standard, they
should shut Fox News for inciting violence against Muslims."
[SOURCE: Washington Post, AUTHOR: John Mintz]
http://www.washingtonpost.com/wp-dyn/articles/A18011-2004Dec21.html
(requires registration)

TRUST FUND POSSIBLE ONLY WITH UNITY AND BROAD SUPPORT
At the University of Chicago's Cultural Policy Center's conference "The
Future of Public Television" everyone was talkin' trust fund. There's a
fleeting chance in coming months that Congress could heed pleas for a trust
fund -- endowing it with proceeds from FCC auctions of the TV spectrum to
be declared surplus when TV broadcasting goes all-digital. To establish
that elusive trust fund -- first envisioned by the Carnegie Commission on
educational television in 1967 -- public broadcasters must unite behind a
plan and marshal a broad coalition to campaign for it. See what proposals
are out there at the URL below.
[SOURCE: Current, AUTHOR: Karen Everhart]
http://www.current.org/funding/funding0423trustfund.shtml

HIGH BIDDING KEEPS PUBRADIO ON SIDELINES IN FCC AUCTIONS
Last month's Auction 37 at the FCC gained bids from 10 public radio
licensees, but just one won a new FM channel. The bids for available
channels went much higher than expected and raise questions on whether
public broadcasters will be able to compete in future auctions as well.
[SOURCE: Current, AUTHOR: Mike Janssen]
http://www.current.org/

JOURNALISM

GALLUP: ONLINE NEWS HASN'T BEATEN OLD MEDIA -- YET
Gallup released poll results Tuesday finding 51% of respondents get news
from local TV every day, 44% get it from local newspapers (additional 14%
say they get news from newspapers several times a week, bringing that total
to 58%), 39% get it from cable news channels and 36% from network TV
newscasts. But every source has fallen somewhat since 2002, with only news
on the Internet gaining, from 15% going there every day two years ago to
20% doing so today.
[SOURCE: Editor & Publisher, AUTHOR: Greg Mitchell
gmitchell( at )editorandpublisher.com]
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_con...

LEARN FROM THE BLOGGERS, MY CHILDREN
What can blogging teach traditional journalism? 1) Be more personal. 2) Let
the public in on news decision-making. 3) Be more focused and intentional
-- stop trying to be everything to everybody. 4) Print the truth, not just
the facts. 5) Don't just report, teach... Become a resource and not just a
product. 6) Be more local. 7) Give readers access to source material (like
the full text of interviews). 8) Add multiple RSS feeds to web sites. 9)
Add email addresses to stories. 10) Learn to change in response to the flow
of news or market conditions. Don't think of this article as a primer for
journalists, think of it as an outline of what to expect from your source
of news.
[SOURCE: First Draft, AUTHOR: Tim Porter]
http://www.timporter.com/firstdraft/

WASHINGTON POST CO. BUYING SLATE WEB MAGAZINE
The Washington Post Company will buy Microsoft's online magazine, Slate, in
an effort to boost the newspaper company's online traffic. According to
ComScore Media Metrix, washingtonpost.com drew 4.5 million unique visitors
last month, while Slate drew 4.8 million. Much of Slate's traffic is driven
by being part of the Microsoft Network, whose home page will continue to
feature Slate headlines under the agreement. Post executives say that
Slate's home page will include some reference to the newspaper's Web site
and that washingtonpost.com will also promote certain Slate stories. Cliff
Sloan, general counsel of Washington Post Newsweek Interactive, called the
acquisition "a great fit" in part because advertisers could be offered a
package that would include The Post and Newsweek sites as well as Slate.
[SOURCE: Washington Post, AUTHOR: Howard Kurtz]
http://www.washingtonpost.com/wp-dyn/articles/A16216-2004Dec21.html
(requires registration)
See also --
http://news.com.com/Washington+Post+picks+up+Slate+from+Microsoft/2100-1...
http://www.latimes.com/business/printedition/la-fi-slate22dec22,1,197674...

INTERNET

A NATIONAL TELEPHONE TAX?
[Commentary] Members of the National Governors Association, the National
Conference of State Legislatures, the National League of Counties, the
National League of Cities and the U.S. Conference of Mayors desperately
wants to tax Internet use. And they're hoping that Internet phone calls,
the latest hot Web application, will pave the way. They want the Internet
classified as one giant telephone for tax purposes. That's because telecom
levies are some of the highest in the country, averaging 17.9%, according
to the Council on State Taxation, and producing a cool $20 billion or so
every year for state and local coffers. Since the Internet is making
everyone more productive, it deserves some credit for the economic growth
that has led to greater tax collections. Taxes are unlikely to help this
trend, let alone encourage faster broadband deployment. If the politicians
see a budgetary "crisis" at the state level, they might consider addressing
the expenditure side of the ledger for a change before making Internet
telephony their next revenue gusher.
[SOURCE: Wall Street Journal, AUTHOR: ]
http://online.wsj.com/article/0,,SB110367932686306775,00.html?mod=todays...
(requires subscription)

SBC WOULD LIKE TO DISCONNECT SOUTH BEND'S BROADBAND PLAN
South Bend (IN) plans to spend $600,000 next year to lay new fiber optic
lines to bring lower prices and easier access to high-speed data users, a
critical ingredient in growing high-tech jobs. SBC, the area's dominant
local phone company, already offers the high-speed Internet service using
the infrastructure from its phone network. The company says
government-subsidized competition is not fair since these telecommunication
providers are exempt from paying taxes, have unfettered access to rights of
way, can raise capital through the issuance of tax-exempt bonds and are not
required to turn a profit. But Mayor Stephen Luecke says the city is not
getting into the telecommunications business. It will be St. Joseph Valley
Metronet -- a nonprofit group comprising representatives from area
businesses and Project Future, the local economic development agency -- not
the city, owning the fiber optic lines. The city is merely entering into a
reciprocal agreement with the nonprofit to allow it use of city pipes, or
conduit, that will carry the lines.
[SOURCE: South Bend Tribune, AUTHOR: Jeff Parrott]
http://www.southbendtribune.com/stories/2004/12/19/local.20041219-sbt-FU...

COMPETITIVE INDUSTRY SPEAKS AGAINST BELLSOUTH FORBEARANCE PETITION
Competitive Internet Service Providers and Internet telephone service
providers spoke with one voice, urging the FCC to deny a BellSouth petition
seeking forbearance from application of Computer Inquiry and Title II
common carrier requirements to the transport component of its broadband
services. They said the market for underlying broadband transmission
services isn't competitive, contrary to the BellSouth claims. They said
Bells retain significant market power in the wholesale telecom services
broadband market, and competitive carriers have to acquire such services
from them. Many agreed there was little or no intermodal competition to
give competitors an alternative, since satellite, wireless and other
technologies have less than 8% of the combined market.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

US JUDGE REFUSES TO ACCEPT GUILTY PLEA ON SPAM
U.S. District Judge Alvin Hellerstein refused to accept a guilty plea from
a former America Online employee accused of selling the Internet provider's
customer list to a "spammer," saying he was unsure a crime had been
committed. At issue, the judge said, is whether the actions rose to the
level required by a new antispam law, which states that spam must be not
only annoying but deceptive.
[SOURCE: Reuters]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=7152902

DOWNLOAD SITE SUPRNOVA CLOSES AMID HOLLYWOOD CRACKDOWN
Slovenia-based SuprNova.org, one of the Internet's most popular sites for
finding links to download pirated movies, has been taken offline by its
creator amid a legal crackdown by Hollywood's copyright cops.
[SOURCE: Reuters, AUTHOR: Adam Pasick]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=7152343

CABLE

SBC'S IP-BASED VIDEO SUBJECT TO FRANCHISE RULES, SAY CITY LAWYERS
If SBC's proposed Internet Protocol-based video programming services offers
broadcast and traditional cable programming such as ESPN and CNN, it would
be subject to local franchising requirements, lawyers for municipalities
say. SBC has taken the position that just as cable's Internet telephone
service is exempt from traditional phone regulations, its Internet
Protocol-based video offering should be exempt from legacy video regulations.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)

CABLE WANTS TO KEEP DUAL BOXES
The FCC is expected to rule in early January on dual-function boxes. The
National Cable & Telecommunications Association wants to eliminate a rule
that will require cable operators to stop providing by July 2006 these
set-top boxes that combine both security and channel-surfing functions. The
rules were imposed to encourage a competitive retail market for set-top
navigation boxes that could contain a variety of new interactive features
and NCTA is arguing that the market is competitive enough already.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA489739.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

A SIT-DOWN WITH...

THE RELUCTANT PLANNER
An August interview with FCC Chairman Michael Powell. He speaks about
broadcast indecency enforcement, spectrum ownership, media ownership rules,
diversity and localism, low power radio, unlicensed spectrum and much much
more.
[SOURCE: Reason Online, AUTHOR: Drew Clark, Nick Gillespie, and Jesse Walker]
http://www.reason.com/0412/fe.dc.the.shtml

Wright's Hollywood Script
Bob Wright, Chief Executive of NBC Universal, talks about what it is like
going from TV mogul to TV, movie, production mogul.
[SOURCE: Wall Street Journal, AUTHOR: Brooks Barnes brooks.barnes( at )wsj.com]
http://online.wsj.com/article/0,,SB110366109828506287,00.html?mod=todays...
(requires subscription)
--------------------------------------------------------------
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.
--------------------------------------------------------------

CORRECTION: The web address for the new Consumer Union telecom site is=20
www.hearusnow.org Many apologies.

BROADCASTING
MAP Fights Media General Waiver
Coalition Continues Anti-Indecency Push
HD Radio Offers Tantalizing Hope for Niche,
Hyperlocal Radio Content
FCC May Soon Adopt Rules for Distributed
Transmission Systems
LPM Fault Rates Are 'Staggering'

MEDIA/JOURNALISM
The Media Crisis at Year's End
Bloggers Scapegoated Over Kerry Miscall?
Religion is Big News on the Net

INTERNET
On the Open Internet, a Web of Dark Alleys
ICANN Partying Like It's 1999
ISP Wins $1 Billion in Spam Suit

TELECOM
Fewer Cellular Carriers, but Not Fewer Services
Why Sprint And Nextel Got Hitched
Sprint-Nextel Deal Could Raise Price For Cable Ventures
Local Governments Brace for Rough 2005
Sprint, Qwest, Level 3, Williams May Face $3 Billion
In Class Action Suits
CTIA Asks High Court to Sanction Zoning Board Damages
Telco Video, Then and Now: What's Different, or Same?
Two New Commissioners Could Help to Energize California PUC

MEDIA MEN OF THE YEAR -- Stern; Stewart

BROADCASTING

MAP FIGHTS MEDIA GENERAL WAIVER
Media General is asking the FCC for a waiver that would allow it to=20
continue to own both WMBB-TV and the Jackson County Floridian in Panama=20
City, Florida. But the Media Access Project is leading a charge to deny the=
=20
waiver so Media General will have to divest itself of one of the properties=
=20
as a condition of renewing WMBB=92s license. FCC rules have allowed Media=
=20
General to operate the combos despite the ban on local crossownership.=20
Because acquisitions of newspapers don't typically need approval of any=20
regulator, a TV owner may buy a paper in one of its markets and operate it=
=20
until the local station=92s license is up for renewal. On behalf of Common=
=20
Cause and Free Press, MAP has already asked the FCC to breakup the=20
company=92s combo in Myrtle Beach, where it owns WBTW-TV and the Florence=20
(SC) Morning News. Over the next three years, every TV station in the=20
country must apply for renewal. Media General also must obtain waivers next=
=20
year for combos in Columbus (GA) and Johnson City (TN).
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA488952?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

COALITION CONTINUES ANTI-INDECENCY PUSH
The 2005 "to Do" list for the Christian Coalition includes religious speech=
=20
and political speech (getting rid of McCain-Feingold ad restrictions in the=
=20
run-up to elections). Is indecent speech on the agenda? Last year the=20
coalition pushed hard for indecency legislation which would have boosted=20
fines for indecency and it is likely to restart that push when Congress=20
returns next month. The coalition also plans to support the Parent's=20
Empowerment Act, a bill from California Republican and House Armed Services=
=20
Committee Chairman Duncan Hunter which would allow parents to bring civil=20
suits against the media for interstate or foreign transmission of=20
entertainment product deemed harmful to minors. Content providers would be=
=20
liable for a $10,000 fine for each instance. And Oklahoma Republican Rep.=20
John Sullivan wants to pass a Sense of Congress resolution urging the=20
Justice Department to enforce obscenity laws, primarily targeted to online=
=20
porn.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA488407?display=3DBreaking+New...
ferral=3DSUPP
Also see an editorial on indecency:
http://www.broadcastingcable.com/article/CA488906.html?display=3DOpinion...
erral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
FCC Receives Record Number Of Complaints, Issues Record Amount In Fines
CNN/Money reports that as 2004 draws to a close, the FCC has so far=20
received more than a million complaints about radio and television=20
programming. That's a record and so is the close to eight million dollars=20
in fines levied, half of them against Clear Channel Communications and=
Viacom.
[SOURCE: Radio Ink]
http://www.radioink.com/HeadlineEntry.asp?hid=3D126368&pt=3Dtodaysnews

HD RADIO OFFERS TANTALIZING HOPE FOR NICHE, HYPERLOCAL RADIO CONTENT
A look at radio's transition to digital technology (HD Radio). Backers of=20
the new technology say that AM radio in HD sounds like FM radio, and FM=20
radio is CD quality. But perhaps the most exciting part of HD Radio is that=
=20
one station on one frequency could serve multiple digital streams --=20
meaning a public station could have news on one channel, classical music on=
=20
another and public affairs programming on another. Plus, there's the=20
possibility of rich data services such as local weather and news beamed to=
=20
portable devices in the future, as well as audio on demand and=20
time-shifting similar to TiVo on televisions. Learn more at the URL below.
[SOURCE: Online Journalism Review, AUTHOR: Mark Glaser]
http://www.ojr.org/ojr/stories/041214glaser/
See also:
Greater Media Commits All Stations To Be On-Air In HD By Year-End 2005
http://www.radioink.com/HeadlineEntry.asp?hid=3D126365&pt=3Dtodaysnews

FCC MAY SOON ADOPT RULES FOR DISTRIBUTED TRANSMISSIONS SYSTEMS
Distributed transmission system (DTS) operation is a method of transmitting=
=20
broadcast signals. Instead of one large tower, DTS employs multiple=20
lower-power transmitters similar to cellular networks. For broadcasters=20
covering areas that include large populations in valleys, DTS can greatly=20
improve TV reception. The FCC appears likely to move quickly on approving=20
DTS and while it works on the proceeding will rule on a case-by-case basis=
=20
for any station that applies to use DTS.
[SOURCE: Communications Daily, AUTHOR: Tania Panczyk-Collins]
(Not available online)

LPM FAULT RATES ARE 'STAGGERING'
The Don't Count Us Out Coalition is renewing its call for federal oversight=
=20
of Nielsen saying there are "gaping discrepancies" between the fault rates=
=20
(when Nielsen fails to get data from a home) for Blacks and Hispanics vs.=20
the general population in New York, Los Angeles, Chicago and San Francisco=
=20
where Nielsen has been rolling out its local people meters.
[SOURCE: Broadcasting& Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA488975?display=3DBreaking+News

MEDIA/JOURNALISM

THE MEDIA CRISIS AT YEAR'S END: SUMMING UP AND MOVING FORWARD
[Commentary] How did the media, an institution with a brave history of=20
safeguarding democracy, become a threat to its survival? The Committee for=
=20
Excellence in Journalism's State of the Media Report shows a system that is=
=20
devolving and losing credibility: 1) A growing number of news outlets are=20
chasing relatively static or even shrinking audiences for news; 2) Much of=
=20
the new investment in journalism today is in disseminating the news, not in=
=20
collecting it; 3) In the 24-hour cable and online news format, there is a=
=20
tendency toward a jumbled, chaotic, repetitive and partial quality in some=
=20
reports, without much synthesis or even the ordering of the information;=20
and 4) Journalistic standards now vary even inside a single news=20
organization. While some trivialize media as a problem, others are trying=20
to do something about it. That is one of the big stories about the media=20
not yet in the media: the emergence of a media and democracy movement.=20
Watch for a year of media activism and advocacy from such groups as Media=20
For Democracy, MediaChannel, Free Press, Common Cause, Media Matters for=20
America, the Center for Digital Democracy, the Consumers Union, FAIR and,=20
possibly, MoveOn.org.
[SOURCE: MediaChannel.org, AUTHOR: Danny Schechter)
http://www.mediachannel.org/views/dissector/affalert301.shtml

BLOGGERS SCAPEGOATED OVER KERRY MISCALL?
On Election Day 2004, early projections for 11 states were off by as much=20
as 20%, a mistake that had news outfits misallocating resources to report a=
=20
win for Sen Kerry. What went wrong? At first, bloggers were blamed for=20
releasing the early results. But why were those polls so off? In=20
mid-January, expect a report from the National Election Pool (NEP), the=20
news organizations that paid for the polls, reviewing its election=20
performance.
[SOURCE: Broadcasting& Cable]
http://www.broadcastingcable.com/article/CA488986?display=3DBreaking+News

RELIGION IS BIG NEWS ON THE NET
News media generally treat religion either as an aspect of a larger story,=
=20
like religion in politics, or seasonally, like the recent article in=20
Newsweek about the birth of the historical Christ. Religion is rarely a=20
story in its own right. But a survey by the Pew Internet and American Life=
=20
Project earlier this year found that of 64 percent of 128 million surfers=20
used the Internet for some form of spiritual or religious activity. That's=
=20
82 million adult Americans. "The Internet is perhaps the most remarkable=20
tool ever in finding out information about religion," according to Pastor=20
Paul Raushenbush, Associate Dean of Religious Life at Princeton University.=
=20
"For good and ill. You can find anything, but you don't know how credible=20
it is," said Raushenbush. Newspapers are just picking up on the interest=20
sparked in part by "The Passion" and the 2004 election.
[SOURCE: Online Journalism Review, AUTHOR: Daith=ED =D3 hAnluain]
http://www.ojr.org/ojr/stories/041216ohanluain/

INTERNET

ON THE OPEN INTERNET, A WEB OF DARK ALLEYS
George Tenet, the former director of central intelligence, speaking on the=
=20
vulnerabilities of the nation's computer networks at a technology security=
=20
conference on Dec. 1, noted the ability of terrorists to "work anonymously=
=20
and remotely to inflict enormous damage at little cost or risk to=20
themselves." He called for a wholesale taming of cyberspace. "I know that=20
these actions would be controversial in this age where we still think the=20
Internet is a free and open society with no control or accountability," Mr.=
=20
Tenet said, "But, ultimately, the Wild West must give way to governance and=
=20
control." Even if the government is able to shore up its networks against=20
attack -- one of many goals set forth by the intelligence reform bill=20
passed last week -- the ability of terrorists and other dark elements to=20
engage in covert communications online remains a daunting security problem,=
=20
and one that may prove impossible to solve.
[SOURCE: New York Times, AUTHOR: Tom Zeller Jr.]
http://www.nytimes.com/2004/12/20/technology/20covert.html
(requires registration)

ICANN PARTYING LIKE IT'S 1999
[Commentary] The Internet Corporation for Assigned Names and Numbers=20
(ICANN), the international organization that oversees domain names,=20
believes it needs a bigger budget funded by domain name fees -- and plans=20
to start charging domain name owners in a process that will begin next=20
year. But ICANN had a similar plan back in 1999 and "Everyone from=20
presidential perennial Ralph Nader to Republican insider Grover Norquist=20
castigated ICANN for levying an 'illegal tax.'" McCullagh ends: "ICANN has=
=20
a clear incentive to adopt common-sense guidelines. Otherwise it risks=20
reliving the backlash it suffered in 1999."
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/ICANN+partying+like+its+1999/2010-1071_3-5495758.htm...
g=3Dnefd.ac

ISP WINS $1 BILLION IN SPAM SUIT
An Internet service provider in Iowa has been awarded more than $1 billion=
=20
in what is believed to be the largest lawsuit judgment ever against=
spammers.
[SOURCE: C-Net|News.com ]
http://news.com.com/ISP+wins+1+billion+in+spam+suit/2100-1028_3-5497211....
?tag=3Dnefd.top

TELECOM

FEWER CELLULAR CARRIERS, BUT NOT FEWER SERVICES
The rapid consolidation in the mobile phone industry raises a compelling=20
question: With fewer carriers, has power in the industry shifted away from=
=20
consumers? Not to worry, the authors say. Eighty percent of American adults=
=20
now use cellphones, so carriers have to reach ever-narrower segments of the=
=20
population. To do that, they are expected to expand the number of service=20
plans they offer, not reduce them. Though carriers are not necessarily=20
cutting the price of their service plans, they are offering consumers more=
=20
minutes and, in Cingular's case, allowing subscribers to roll over unused=20
time from month to month. With the extra time, wireless subscribers are=20
finding it easier to use their cellphone for long-distance calls that they=
=20
previously would have made on their home phones.
[SOURCE: New York Times, AUTHOR: Matt Richtel & Ken Belson]
http://www.nytimes.com/2004/12/20/technology/20newcon.html
(requires registration)

WHY SPRINT AND NEXTEL GOT HITCHED
The proposed merger of Sprint and Nextel is aimed first and the continued=20
survival of the two companies, but there's more. The deal leaves Sprint=20
Nextel poised to play a pivotal role in the coming convergence between=20
traditional and wireless phones, Web access, and video services. As the=20
Bells race against the cable operators to sell consumers everything from=20
voice to data to video, both sides need wireless phone services to sweeten=
=20
their bundle of offerings. The Bells already own their own wireless=20
companies -- but cable companies don't. Sprint Nextel can provide a=20
ready-made wireless offering for cable's four-fer pack. "The cable=20
companies are clearly looking for a wireless play," says Nextel CEO Timothy=
=20
M. Donahue, who will be chairman of the new company. "This [merged] company=
=20
is going to be remarkably successful in attracting partners." And the two=20
wireless carriers together own enough airwaves, stretching coast-to-coast,=
=20
to offer voice, data, and even video over next-generation wireless=20
broadband technology, such as the much-ballyhooed, upcoming WiMax standard.
[SOURCE: BusinessWeek, AUTHOR: Roger Crockett, Catherine Yang, Tom Lowry]
http://www.businessweek.com/technology/content/dec2004/tc20041217_6024.htm

SPRINT-NEXTEL DEAL COULD RAISE PRICE FOR CABLE VENTURES
The Sprint-Nextel deal will create the third-largest wireless carrier in=20
the nation, behind Cingular Wireless and Verizon Wireless, both owned by=20
Bell giants. With added muscle, a combined Sprint-Nextel could prove to=20
drive a hard bargain with cable operators intent on adding a wireless=20
component to their bundle of voice, video and data products. Cable=20
operators were not expected to be seriously looking to add a wireless=20
component to their voice offerings until the bulk of the VoIP rollout is=20
completed toward the end of 2005. =93The likelihood of a wireless venture=20
really hinges on whether customers demand wireless in the bundle,=94 Moffett=
=20
said. =93The Sprint-Nextel merger has one big pro -- a deal with=20
Sprint-Nextel would allow a more competitive offering down the road than=20
either could offer on their own -- and one big con -- the cable industry=92s=
=20
negotiating leverage would be diminished if they had to negotiate with the=
=20
two companies as one. But the question that remains is if this is something=
=20
that customers really have an appetite for.=94
[SOURCE: Multichannel News, AUTHOR: Mike Farrell]
http://www.multichannel.com/article/CA489007.html?display=3DTop+Stories
(free access for Benton's Headlines subscribers)

LOCAL GOVERNMENTS BRACE FOR ROUGH 2005
The Local Government Telecommunications Alliance is predicting that both=20
Congress and state legislatures will continue efforts to limit local=20
oversight of Internet-protocol services, whether voice, video or data. The=
=20
Senate is expected to take the lead in drafting new legislation designed to=
=20
overhaul the Telecommunications Act of 1996.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA488941.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
See also --
States Must Update Communications Laws
State regulatory regimes for communications services are "no longer=20
sustainable," Progress & Freedom Foundation President Ray Gifford argues in=
=20
a new study.
[SOURCE: Progress & Freedom Foundation Press Release]
http://www.pff.org/news/news/2004/121704modelstate.html
http://www.pff.org/issues-pubs/pops/pop11.21modelstate.pdf

SPRINT, QWEST, LEVEL 3, WILLIAMS MAY FACE $3 BILLION IN CLASS ACTION SUITS
Sprint, Qwest, Level 3 and Williams asked the 7th U.S. Appeals Court=20
(Chicago) on Friday to stay a decision handed down last week reversing a=20
controversial nationwide class action settlement favored by the telecom=20
companies and lifting an injunction to allow other class action lawsuits to=
=20
go forward. The defendant companies said they had installed fiber on more=20
than 36,000 miles of railroad rights of way, comprising their core=20
infrastructure. But more than 30 class actions nationwide claim that the=20
subsurface rights belong to the landowners, and that the telecom companies=
=20
are intentional trespassers. Liability for the suits could reach $3 billion.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

CTIA ASKS HIGH COURT TO SANCTION ZONING BOARD DAMAGES
In January the Supreme Court is scheduled to hear Abrams v. City of Rancho=
=20
Palos Verdes, a case in which the Court will decide whether an amateur=20
radio operator should be reimbursed for his legal fees after winning a=20
dispute over a 50-foot antenna. The crux of the matter is a statute=20
originally intended to protect
plaintiffs in civil rights cases, that requires the losing side to cover=20
the legal fees of the prevailing party. The statute essentially flips a=20
central principal of US jurisprudence, the American Rule, that in most=20
cases both sides pay their own fees. The wireless industry lobby, CTIA, has=
=20
filed a brief in the case citing five zoning cases where it said carriers=20
were hurt by spurious decisions by local boards. Each represent =93bald=20
denials of federal rights by officials acting under color of state law,=94=
=20
CTIA said.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)

TELCO VIDEO, THEN AND NOW: WHAT'S DIFFERENT, OR SAME?
Ten years ago, the subject of telco-delivered video was just as hot, if not=
=20
hotter, than it is now. Monthlies wrote cover stories about it. Conferences=
=20
sprang up to attend to the growing video plans of the then-Big Six phone=20
companies. A lot was going on. But not much was ever accomplished. It took=
=20
a decade for telco video not to happen the last time. Now, the question=20
could be if it will take that long this time.
[SOURCE: Multichannel News, AUTHOR: Leslie Ellis]
http://www.multichannel.com/article/CA488992.html?display=3DBroadband+We...
eferral=3DSUPP
(free access for Benton's Headlines subscribers)

TWO NEW COMMISSIONERS COULD HELP TO ENERGIZE CALIFORNIA PUC
The California Public Utilities Commission regulates companies that provide=
=20
power, telephone and water service in the state. With the appointment last=
=20
week of two new members to the PUC, Gov. Arnold Schwarzenegger can expect=20
solid support from the agency as he attempts to revamp the state's energy=20
market.
[SOURCE: Los Angeles Times, AUTHOR: Marc Lifsher and James S. Granelli]
http://www.latimes.com/business/printedition/la-fi-puc20dec20,1,6346913....
y?coll=3Dla-headlines-pe-business
(requires registration)

MEDIA MEN OF THE YEAR

Media Web's Newsmaker of the Year is Howard Stern
http://www.investors.com/breakingnews.asp?journalid=3D24451335&brk=3D1

I Want Media's 2004 Media Person of the Year is Comedy Central's Jon Stewart
http://www.iwantmedia.com/mediapersonoftheyear.html
--------------------------------------------------------------
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.
--------------------------------------------------------------

Today Consumers Union is launching an innovative new Website,=20
www.HearUsNow.org to help consumers navigate issues like cell phone mergers=
=20
by providing consumer tips, how-to advice and policy analysis on the full=20
array of communication issues, including traditional phones, wireless=20
service, the Internet and broadband, radio-TV-cable, and digital content.

NEWS FROM THE FCC
FCC Rolls Back Network Sharing Rules for Bells
FCC to Examine Ban on Using Cellular Telephones on
Airborne Aircraft
FCC Paves the Way for New Broadband Services in the Air
Wideband & Ultra-wideband Devices
Funding for Rural Telemedicine Services
Deployment of Broadband Communications on Weasels

MORE FCC-RELATED NEWS
FCC Won't Stifle Satellite Stern
The FCC=92s Five Years of Inaction on Public Interest Obligations
of Digital Broadcasters
800 MHz Rebanding Order Near Decision at the FCC
Covad, Verizon Rework DSL Deal
The Internet's Biggest Foe

BROADCASTING
Pubcasters Struggle to Agree on Unified Trust Fund Proposal
TV's Future May Be Web Search Engines That Hunt for Video

QUICKLY -- Spam Law is Unconstitutional; Media Campaign for Gov Openness
Digital Radio Rollout; Restricting Video Game Sales;
The Fight of a Local Paper; Is the Internet truly Global?

REACTION TO NEXTEL-SPRINT MERGER ANNOUNCEMENT

NETWORK UNBUNDLING OBLIGATIONS

NEWS FROM THE FCC

FCC ROLLS BACK NETWORK SHARING RULES FOR BELLS
In a 3-2 vote, the FCC has decided Baby Bells are not required to share=20
their telecommunications switching gear with competitors. By limiting=20
unbundling the Commission aims to "provide incentives for both incumbent=20
carriers and new entrants to invest in the telecommunications market in a=20
way that best allows for innovation and sustainable competition," as the=20
Press release reads. Without the discounts on switch leasing, competitors=20
will have to buy their own switching equipment or re-negotiate leases with=
=20
the Bells. The FCC plans to ease the transition into the new rules over the=
=20
next year, setting the beginning of 2006 as its target to complete the=20
changes. During this period, competitors will not be allowed to add new=20
customers piggybacking on the incumbent's switches. Commissioners Copps and=
=20
Adelstein dissented; the decision "effectively dismantles wireline=20
competition," Copps wrote warning that "consumers will face less=20
competition, higher rates and fewer service choices." Adelstein wrote that=
=20
the decision "officially cuts the cord on the local competition provisions=
=20
of the Telecommunications Act of 1996, the companies and investors which=20
sought to deliver on the promise of the Act, and the American consumers -=20
to whom that promise was made."
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu]
http://news.com.com/FCC+rolls+back+network+sharing+rules+for+Bells/2100-...
_3-5492092.html?tag=3Dnefd.top
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255344A1.doc
There's a lot of coverage and reaction to this decision which you will find=
=20
under the "Network Unbundling Obligations" at the end of this email.

FCC TO EXAMINE BAN ON USING CELLULAR TELEPHONES ON AIRBORNE AIRCRAFT
The FCC proposed to relax its current ban on the use of cellular telephones=
=20
on airborne aircraft. The Commission addressed policy and technical options=
=20
for permitting controlled use of cellular handsets and other wireless=20
devices in airborne aircraft as a means to increase communication options=20
available to the traveling public as well as public safety personnel. The=20
Commission's rules currently require that cellular handsets be turned off=20
once an aircraft leaves the ground to avoid interfering with terrestrial=20
cellular systems. Federal Aviation Administration (FAA) regulations also=20
currently restrict the use of mobile telephones and other portable=20
electronic devices (PEDs) on aircraft to ensure against interference to=20
onboard communications and navigation equipment. The Commission cautioned=20
that any steps it ultimately takes with respect to the use of cellular and=
=20
other wireless devices aboard aircraft would be subject to the rules and=20
policies of the FAA and aircraft operators. Specifically, the Commission=20
proposed to permit the airborne operation of "off the shelf" wireless=20
handsets and other devices so long as the device operates at its lowest=20
power setting under control of a "pico cell" located on the aircraft, and=20
the operation does not allow unwanted radio frequency emissions to=20
interfere with terrestrial cellular systems. The Commission asked for=20
public comment on whether the proposal should apply only to devices=20
operating in 800 MHz cellular spectrum, or whether devices operating on=20
other spectrum bands, such as the PCS band or Advanced Wireless Services=20
bands, should be included. The Commission also asked for public comment on=
=20
ways that the 800 MHz cellular spectrum could be used to provide a=20
communications "pipe" between airborne aircraft and the ground. This could=
=20
include whether the current FCC restriction could be replaced by an=20
industry-developed standard that would guard against harmful interference=20
to both airborne and terrestrial systems through appropriate technical and=
=20
operational limitations.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255246A1.doc
This item has gotten a lot of press a la "ya wanna sit next to a baby or an=
=20
obnoxious cell phone user during a long flight." But we are likely a year=20
or more away from a change in FCC rules no less FAA rules.
Also see:
Feds move on wireless Web, cell phones in flight
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon and Ben Charny]
http://news.com.com/Feds+move+on+wireless+Web%2C+cell+phones+in+flight/2...
1039_3-5491802.html?tag=3Dnefd.top

FCC PAVES THE WAY FOR NEW BROADBAND SERVICES IN THE AIR
The FCC adopted a plan for help bring broadband services to the traveling=20
public onboard aircraft by licensing the 4 MHz of spectrum in the 800 MHz=20
band currently dedicated to commercial air-ground service. The=20
Commission's action aims at to greater technical, economic, and marketplace=
=20
efficiency for this spectrum. Under the licensing approach adopted by the=20
Commission, the final band configuration will be determined by the winning=
=20
bidders at auction. New licenses will be awarded to high bidders for the=20
two licenses comprising the configuration that receives the highest=20
aggregate gross bid, subject to review of post-auction license=20
applications. The Commission decided to auction new licenses for this=20
spectrum in three possible band plan configurations and proposed auction=20
rules for this spectrum. To further competition and ensure maximum use of=20
the frequency band for air-ground services, the Commission imposed an=20
eligibility limitation to prevent a single entity from holding new licenses=
=20
for all 4 MHz of air-ground spectrum. Commissioner Copps warned that the=20
plan could mean one company can lock up the only license that can support a=
=20
true broadband air-to-ground service. The "result might be a feast for the=
=20
monopolist," he wrote, "but it's famine for consumers."
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255345A1.doc
Read statement from Commissioner Copps at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255246A3.doc
Coverage --
WSJ
http://online.wsj.com/article/0,,SB110312683433800925,00.html?mod=3Dtoda...
s_personal_journal

WIDEBAND & ULTRA-WIDEBAND DEVICES
The FCC adopted rules aimed at further facilitating the introduction of new=
=20
unlicensed wideband devices. These devices will include radar systems to=20
improve automotive safety and tracking systems for personnel location, such=
=20
as hospital patients and emergency rescue crews, as well as for functions=20
such as inventory control. The Commission previously established=20
regulations that permit the marketing and operation of certain types of new=
=20
products incorporating ultra-wideband (UWB) technology. UWB technology can=
=20
be employed for a vast array of new applications that have the potential to=
=20
provide significant benefits for public safety, businesses and consumers.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255351A1.doc
See also:
FCC to Monitor Cable=92s UWB Concerns
Cable programmers argued that without proper restrictions, UWB could cause=
=20
harmful interference to cable signals sent via satellite to 9,000 cable=20
headends around the country. Some broadcasters raised identical concerns.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA488241.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

FUNDING FOR RURAL TELEMEDICINE SERVICES
The FCC expanded its program to bring up-to-date medical services and=20
information to rural areas through telecommunications. The Rural Health=20
Care Support Mechanism program is authorized to provide up to $400 million=
=20
in telemedicine funding annually to ensure that health care providers=20
serving rural communities pay no more than their urban counterparts for=20
telecommunications essential to the provision of services. The program=20
provides discounts on monthly telecommunications charges, satellite=20
services for mobile medical clinics in rural areas, and Internet access.=20
With program expenditures below the annual limit, the Commission has taken=
=20
numerous steps to increase use of the program. The Commission: 1) Redefined=
=20
what constitutes a rural area to better target small towns and villages=20
while still maintaining a focus on the areas with the most need; 2)=20
Increased discounts available to mobile rural health care providers for the=
=20
purchase of mobile satellite telecommunications services; and 3)=20
Streamlined the application process by setting an annual June 30 deadline=20
for applications. The Commission also launched a further rulemaking=20
examining whether a flat 25% discount for Internet services is sufficient=20
and whether network infrastructure should be funded under the rural health=
=20
care mechanism.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255348A1.doc

DEPLOYMENT OF BROADBAND COMMUNICATIONS ON WEASELS
Oh, whoops, make that "vessels" -- not that we're against broadband for=20
weasels... we want broadband for all carnivorous mammals.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255347A1.doc

MORE FCC-RELATED NEWS

FCC WON'T STIFLE SATELLITE STERN
The FCC declined to open a proceeding on whether satellite radio is=20
indecent, saying that it is a subscription service and that the agency has=
=20
already ruled that such services "do not call into play the issue of=20
indecency." L.A.-based Mt. Wilson FM Broadcasters asked the FCC to modify=20
its Satellite Digital Audio Radio Service Rules to include an indecency=20
provision analogous to that for over-the-air broadcasters, or alternately=20
to loosen the restrictions on those traditional broadcasters.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/CA488198.html&referral=3DSUPP
(free access for Benton's Headlines subscribers)
See also:
Satellite-Radio Ruling a Break for Cable
The FCC=92s decision, issued by Media Bureau chief Kenneth Ferree, was a=
boon=20
for cable because the extension of indecency rules to pay radio could have=
=20
set the stage for spreading them to pay TV providers.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA488210.html?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)
* TVWeek
http://www.tvweek.com/news.cms?newsId=3D6925

THE FCC'S FIVE YEARS OF INACTION ON PUBLIC INTEREST OBLIGATIONS OF DIGITAL=
=20
BROADCASTERS
Yesterday the Public Interest, Public Airwaves Coalition [which includes=20
the benton Foundation] marked an unhappy anniversary: It is five years to=20
the day since the Federal Communications Commission (FCC) issued a Notice=20
of Inquiry into the public interest obligations of broadcasters in the=20
digital age. Five years =AD and the FCC has issued notices and asked for=20
updates, but has refused to issue final rules that address core elements of=
=20
these obligations. The FCC=92s failure to act is an abdication of its=20
responsibility to ensure that the public airwaves benefit the American=20
people. The FCC=92s inaction also flies in the face of the public=92s=
increased=20
alarm with a media landscape controlled by half a dozen corporate giants=20
whose sole goal seems to be increasing profits, and when broadcast coverage=
=20
of local news, public affairs and state and local elections is at an=20
all-time low. The Public Interest, Public Airwaves Coalition calls on FCC=20
Chairman Michael Powell to make a New Year=92s Resolution to schedule action=
=20
in January on a Notice of Proposed Rulemaking (NPRM) regarding the public=20
interest obligations of digital broadcasters. Putting this matter on the=20
January Commission meeting agenda is the very least the Chairman can do to=
=20
demonstrate that he understands that his agency=92s first responsibility is=
=20
to the American public.
[SOURCE: Alliance for Better Campaigns Press Statement]
http://bettercampaigns.org/press/release.php?ReleaseID=3D66

800 MHZ REBANDING ORDER NEAR DECISION (AGAIN) AT THE FCC
AN order addressing changes to the FCC=92s 800 MHz rebanding order sought by=
=20
Nextel has started to circulate at the Commission. Sources said the order,=
=20
initiated by the FCC, addresses the key =93decisional=94 issues raised by=20
Nextel in its objections to the order and will likely result in Nextel=20
having to pay $452 million less than originally projected.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)

COVAD, VERIZON REWORK DSL DEAL
With the FCC voting to discontinue requirements for the Bells to share=20
their phone switching gear with competitors, start-up phone services still=
=20
have access to the Bells' copper lines, but they can't lease the Bells'=20
switching equipment at government-set rates. Instead, they'll have to buy=20
their own equipment or negotiate new deals. For little guys such as Covad,=
=20
DSL will be a more difficult market to conquer. While Covad still owns DSL=
=20
lines in some markets, the lion's share of its DSL subscribers use a local=
=20
Bell operator's network. Covad has since turned its attention to the=20
already crowded business of selling phone service to broadband Internet=20
subscribers. Covad will continue to pay government-set leasing rates for=20
the lines it provides to customers who subscribed before November. To serve=
=20
newer customers, Covad will have to pay Verizon the newly negotiated rate.
[SOURCE: C-Net|News.com, AUTHOR: Jim Hu]
http://news.com.com/Covad%2C+Verizon+rework+DSL+deal/2100-1037_3-5492668...
l?tag=3Dnefd.top

THE INTERNET'S BIGGEST FOE
[Commentary] Despite his self-professed claim of being a "techno-geek," FCC=
=20
Chairman Michael Powell has done everything in his power to restrict=20
American citizens' choice of information and entertainment. He launched a=20
censorship campaign against broadcasting and allowed the near total=20
reconcentration of the broadcast industry into a very few hands. He is=20
championing policies that will gut the nation's market-opening provisions=20
telecommunications law. Several Wall Street analysts predict that in=20
another 12 months, the Bells will recapture 80 percent of the 20 million=20
customers that had chosen to take their business to phone companies that=20
better met their needs. While Powell may point to wireless and Internet=20
telephone service as competitors to the Bells, but the Bells serve over 70%=
=20
of all U.S. consumers who take service from a national wireless carrier and=
=20
alternative competitive platforms all need access to Bells' network lines=20
for the last mile to America's homes and businesses. Throughout his tenure,=
=20
Powell has paid lip service to the benefits of the Internet and new=20
technology. But his policies conflict with his rhetoric. In truth, he has=20
been captured by the four Bell companies and done their bidding. Because=20
Powell's record proves conclusively that he is hostile to President Bush's=
=20
stated goals of promoting entrepreneurship, technology deployment and, most=
=20
important, individual freedom and liberty, Powell clearly does not deserve=
=20
to serve in the second Bush administration.
[SOURCE: C-Net|News.com, AUTHOR: Lawrence Spiwak, president of the Phoenix=
=20
Center for Advanced Legal and Economic Public Policy Studies]
http://news.com.com/The+Internets+biggest+foe/2010-1028_3-5491523.html?tag=
=3Dnefd.ac

BROADCASTING

PUBCASTERS STRUGGLE TO AGREE ON UNIFIED TRUST FUND PROPOSAL
Public broadcasters share a common goal: they want more money. But they=20
can't seem to agree on how to get it. The Association of Public TV Stations=
=20
(APTS) has been spearheading a proposal for a trust fund proposal created=20
by voluntary, early return of stations=92 analog spectrum. APTS wants the=20
fund to supplement federal appropriations, be directed to stations and be=20
used to create digital educational content. PBS has created an advisory=20
committee to examine ways to increase funding looking at a possible trust=20
fund, but other options as well. The panel could issue recommendations=20
before April including the size of the fund, the voluntary nature of early=
=20
spectrum return by public TV stations and to what extent public radio=20
stations would benefit. Former PBS President Larry Grossman and former FCC=
=20
Chairman Newton Minow have also worked tirelessly on a trust fund proposal;=
=20
they believe Congress won't accept a trust fund that focuses only on public=
=20
broadcasters.
[SOURCE: Communications Daily, AUTHOR: Dinesh Kumar]
(Not available online)
See also:
* Broadcasting&Cable
http://www.broadcastingcable.com/article/CA488249?display=3DBreaking+New...
ferral=3DSUPP
(free access for Benton's Headlines subscribers)

TV'S FUTURE MAY BE WEB SEARCH ENGINES THAT HUNT FOR VIDEO
The startup search engine Blinkx today will begin allowing users to search=
=20
the Web for selected video clips from 15 television channels. Today, these=
=20
offerings are novelties in the competitive and expanding Web-search=20
industry. But the long-term implications go far beyond the search function.=
=20
Some search companies aspire to offer video programs directly to consumers=
=20
via their computer screens and eventually on TV, potentially competing with=
=20
TV networks and other video distributors. But to fulfill these larger=20
ambitions, Internet companies will have to resolve legal and licensing=20
issues with creators and distributors of TV and other video, who closely=20
guard the dissemination of their wares over the Internet.
[SOURCE: Wall Street Journal, AUTHOR: Kevin J. Delaney=20
kevin.delaney( at )wsj.com and Martin Peers martin.peers( at )wsj.com]
http://online.wsj.com/article/0,,SB110314966721301333,00.html?mod=3Dtoda...
s_marketplace
(requires subscription)

QUICKLY (OK, the irony of using that word today is not lost)

Antispam Law Ruled Unconstitutional
A Maryland judge has tossed out a lawsuit against an alleged spammer,=20
saying a state law restricting unsolicited e-mail is unconstitutional=20
because it unfairly restricts interstate commerce.
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
http://news.com.com/Antispam+law+ruled+unconstitutional/2100-1030_3-5491...
html?tag=3Dnefd.top

Media To Campaign For Government Openness
Starting on March 13, newspapers, magazines, radio stations, Web sites and=
=20
television stations will participate in "Sunshine Week," an unprecedented=20
national effort to educate the public about the importance of government=20
openness.
[SOURCE: Radio Ink]
http://www.radioink.com/HeadlineEntry.asp?hid=3D126323&pt=3Dtodaysnews

Broadcast Execs To Unveil Accelerated HD Radio Rollout Plans At CES
Broadcast industry leaders from Bonneville, Clear Channel, Cox, Entercom=20
and Radio One will disclose nation-wide high-definition radio conversion=20
plans during a press conference on January 5, 2005 at the International=20
Consumer Electronics Show.
[SOURCE: Radio Ink ]
http://www.radioink.com/HeadlineEntry.asp?hid=3D126324&pt=3Dtodaysnews

A Push to Restrict Sales of Video Games
Decrying violence in fast-selling video games, Gov. Rod Blagojevich (D)=20
wants Illinois to make it illegal for anyone younger than 18 to buy violent=
=20
or sexually explicit games. Among the targets would be the Grand Theft Auto=
=20
series, Halo 2 and Mortal Kombat.
[SOURCE: Washington Post, AUTHOR: Peter Slevin]
http://www.washingtonpost.com/wp-dyn/articles/A3131-2004Dec15.html
(requires registration)

Letting Story, Not Money, Guide Light
A local newspaper struggles financially, a community responds.
[SOURCE: Los Angeles Times, AUTHOR: Michael Hiltzik]
http://www.latimes.com/business/printedition/la-fi-golden16dec16,1,75599...
olumn?coll=3Dla-headlines-pe-business
(requires registration)

Is the Internet truly Global?
Isn't it time the Internet started handling non-Roman characters?
[SOURCE: C-Net|News.com, AUTHOR: Winston Chai]
http://news.com.com/Is+the+Internet+truly+global/2010-1038_3-5491681.htm...
g=3Dnefd.ac

REACTION TO NEXTEL-SPRINT MERGER ANNOUNCEMENT

Taking On Giants, Sprint Nextel Seeks to Exploit Wireless Growth
Behind the $35 billion merger deal between Sprint and Nextel is a powerful=
=20
force: Many people want to drop their phone lines. The biggest cellphone=20
service providers are also in the fixed-line business, so it isn't in their=
=20
interest to encourage customers to cut their wires. But the new Sprint=20
Nextel won't have that entanglement because wireless will account for about=
=20
80% of its revenues. The company, a combination of two former also-rans=20
that reversed their fortunes in the past two years, will urge customers not=
=20
only to unplug their phones but also to try high-speed wireless Internet=20
access.
[SOURCE: Wall Street Journal, AUTHOR: Jesse Drucker jesse.drucker( at )wsj.com,=
=20
Almar Latour almar.latour( at )wsj.com & Dennis K. Berman dennis.berman( at )wsj.com ]
http://online.wsj.com/article/0,,SB110316035776401667,00.html?mod=3Dtoda...
s_page_one
(requires subscription)
Also --
Can Sprint Keep
Nextel Customers Happy?
http://online.wsj.com/article/0,,SB110315036403601355,00.html?mod=3Dtoda...
s_marketplace

Washington Post
http://www.washingtonpost.com/wp-dyn/articles/A3547-2004Dec15.html

USA Today
http://www.usatoday.com/printedition/news/20041216/1a_lede16.art.htm
http://www.usatoday.com/printedition/money/20041216/1b_sprintnextel.art.htm

LA Times
http://www.latimes.com/business/printedition/la-fi-sprintel16dec16,1,470...
.story?coll=3Dla-headlines-pe-business

NYTimes
http://www.nytimes.com/2004/12/16/business/16phone.html

Communications Workers of America Calls for Scrutiny of Sprint, Nextel=20
Wireless Merger
http://www.cwa-union.org/news/PressReleaseDisplay.asp?ID=3D469

Sprint-Nextel Merger is Another Blow to Consumers' Pocketbooks
"This merger will do little for consumers, but most importantly, it signals=
=20
the likely end to the possibility of building vibrant wireless competition=
=20
to the dominant, local Bell telephone companies,=94 said Gene Kimmelman,=20
senior director of public policy for Consumers Union. =93In giving a green=
=20
light to Cingular-ATT Wireless, the government effectively established a=20
=91three companies is enough=92 standard for wireless competition,=94=
Kimmelman=20
added. =93Under this approach we fear the cell phone market will start to=20
function the way the cable and satellite market has, where prices go up=20
year in and year out due to lack of competition.=94
=93The fact that Sprint and Nextel customers=92 phones likely won=92t be=20
compatible on the combined network will be a major headache and expense for=
=20
consumers,=94 said Janee Briesemeister, Consumers Union senior policy=20
analyst. =93Given this enormous consumer expense, and the fact that=20
competitive pressures diminish substantially in this consolidated market,=20
we=92re renewing our call on the FCC to ensure that all new cell phones that=
=20
come into the market can be used by all providers.=94
http://www.consumersunion.org/pub/core_telecom_and_utilities/001731.html...
e

NETWORK UNBUNDLING OBLIGATIONS

Small Telecoms Losing Mandated Line Discounts
http://www.washingtonpost.com/wp-dyn/articles/A3545-2004Dec15.html

Local phone competition ruling could raise rates
http://www.usatoday.com/printedition/money/20041216/phone16.art.htm

FCC Deals Blow to Bell Rivals
http://www.latimes.com/business/printedition/la-fi-phones16dec16,1,50604...
tory?coll=3Dla-headlines-pe-business

Big Bells Allowed to Charge Rivals More for Line Access
http://www.nytimes.com/2004/12/16/technology/16rates.html

FCC Votes to End Many Discounts Bells Give Rivals
http://online.wsj.com/article/0,,SB110316093190501689,00.html?mod=3Dtoda...
s_marketplace

Assistant Secretary Gallagher's statement on FCC rules authorizing=20
deployment of ultrawideband technology.
http://www.ntia.doc.gov/ntiahome/press/2004/mdgstatement_12152004.html
National Telecommunications and Information Administration

Association for Local Telecommunications Services Criticizes the FCC For=20
Failing to Adopt a Bipartisan Order that Promotes Facilities-Based=
Competition
http://206.161.82.210/altsbiz/webmodules/articles/ispviewer.asp?a=3D1225&z=
=3D41

CompTel/ASCENT disappointed that the FCC could not reach an acceptable=20
compromise in this critical proceeding.
http://www.comptelascent.org/news/recent-news/121504.html

FCC Order Continues Eight Year Regulatory Two-Step
http://www.usta.org/news_releases.php?urh=3Dhome.news.nr2004_1215
United States Telecom Association
--------------------------------------------------------------

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

MEDIA
FCC Complaints To Deny Licenses Must Be Local, UCC Leaders Explain
Protest Launched Against Sinclair
Powell Urges No Action on 'Ryan' Airing
Public Loses Twice: FCC Promotes Indecency, Then Censors It
Net News Lacks Latinos
Local TV News Looks Overseas
Hezbollah's TV Station Is Ordered Off the Air
Recommendations from FCC's Committee on Diversity for
Communications in the Digital Age
WFED, Radio Free Bureaucrat

TELECOM
A Telecom Frenzy Over Sprint
Sprint's Planned Nextel Deal Builds on Wireless Strength
Fliers Fear Cellular Blab, Hot-Air Planes

QUICKLY -- Lots of Challenges Await new FTC Head; Digital Divide Network Launch

MEDIA

FCC COMPLAINTS TO DENY LICENSES MUST BE LOCAL, UCC LEADERS EXPLAIN
Last week, the United Church of Christ filed petitions to deny the license
renewals of two Miami stations owned and operated by the CBS and NBC
television networks because the networks refused to run a UCC ad aimed at
diversifying local congregations. Gloria Tristani, a former FCC
commissioner (1997-2001) and managing director of OC Inc., said, "It's
important to remember that owned and operated stations are, quite
literally, owned and operated by their respective networks. These two local
stations bring the networks' damaging decisions 'front and center' for
those in the Miami viewing audience." She added, "We believe the church has
a strong case." In its petition, the United Church of Christ argues that,
in addition to the networks' silencing of the church's distinctive
religious and moral voice, it is "impractical, burdensome and expensive"
for the networks to reject the ads and then to intimate that the church
could pursue ad buys in each and every local CBS or NBC market.
[SOURCE: Radio Ink]
http://www.radioink.com/HeadlineEntry.asp?hid=126255&pt=todaysnews

PROTEST LAUNCHED AGAINST SINCLAIR
A coalition led by Media Matters for America will announce today a
nationwide protest against Sinclair Broadcast Group, charging that the
62-station TV broadcaster is misusing public airwaves with partisan news
programming. The coalition includes MoveOn.org, Free Press, Campaign for
America's Future, Working Assets, Alternet, and MediaChannel. The main
focus of the protest is the nightly "The Point" commentary by Mark Hyman,
who is Sinclair's spokesman and also oversees the company's Washington
lobbying. A recent Media Matters analysis of "The Point" editions from Nov.
2 to Dec. 1 found that the commentaries repeatedly attacked former
Democratic candidate John F. Kerry, former President Clinton and other
Democratic politicians. Hyman has referred to Democrats as the "Angry
Left," charged that there is a liberal bias in the media and expressed
support for Bush administration policies. The commentary airs on about 40
of the 62 stations that Sinclair owns, programs or manages, reaching about
one-fourth of U.S. homes with televisions. The anti-Sinclair campaign will
be run through a new website, SinclairAction.com.
[SOURCE: Los Angeles Times, AUTHOR: Elizabeth Jensen]
http://www.latimes.com/news/printedition/asection/la-na-sinclair14dec14,...
(requires registration)
Also see http://mediamatters.org/items/200412140002

POWELL URGES NO ACTION ON 'RYAN' AIRING
Sixty-six ABC affiliates refused to air the uncut version of "Saving
Private Ryan" on Veterans Day last month, citing concerns that they could
face fines for profanity and graphic violence from the FCC, which has been
cracking down on broadcast indecency. But FCC Chairman Michael Powell has
concluded that the agency should not take action against the other 159
stations that aired the acclaimed movie because the language was part of
accurately portraying the story. Powell's recommendation will go to the
four other FCC commissioners for a vote.
[SOURCE: Los Angeles Times, AUTHOR: Reuters]
http://www.latimes.com/business/printedition/la-fi-fcc14dec14,1,6421629....
(requires registration)

PUBLIC LOSES TWICE: FCC PROMOTES INDECENCY, THEN CENSORS IT
[Commentary] The authors respond to a New York Times Op-Ed by FCC Chairman
Michael Powell, pointing out that Powell has championed policies that have
led to the growth of indecent programming. They identify those policies as
the relaxation of FCC rules on media outlet and content ownership. They
also fault Powell by responding to questionable content with ambiguous
enforcement when less restrictive alternatives -- television ratings, the
V-Chip, etc -- are available. They conclude: "Mr. Powell has got his
responsibilities under the First Amendment backwards. Over tremendous
public protest, he foisted upon the American public an
excessively-concentrated media that restricts free expression. Then, when
that excessively-concentrated media inevitably produces indecent material,
he censors it. The public loses both ways. Rather than criticize the
legitimate outcry against his heavy-handed policies as "rant," Mr. Powell
would do well to consider the words offered to another well-intentioned but
ultimately misguided public servant in Julius Caesar; 'The fault, dear
Brutus, is not in our stars, but in ourselves.'"
[SOURCE: MediaChannel.org, AUTHOR: Peggy Charren and Jonathan Rintels,
Center for Creative Voices in Media]
http://www.mediachannel.org/views/dissector/affalert298.shtml

NET NEWS LACKS LATINOS
The National Association of Hispanic Journalists released its 9th Annual
Network Brownout Report and found that out of 16,000 stories that aired on
the network evening newscasts in 2003, only 131 stories, or 0.82%, were
exclusively about Latinos. Latinos appeared as sources in an estimated 285
non-Latino stories (1.8 percent). Interviews with Gen. Ricardo Sanchez,
California Lt. Gov. Cruz Bustamante and New Mexico Gov. Bill Richardson
accounted for 40% of this total. Latinos make up close to 14 percent of the
U.S. population. The Brownout report also found that the majority of Latino
stories that aired in 2003 covered a limited number of topics. Overall, 44%
of Latino stories were about immigration (30 stories) and crime (27
stories). That figure climbs to 55% when human-interest stories (15
stories) are included and to 73% when the topics of election politics (11
stories) and celebrities (12 stories) are added.
[SOURCE: National Association of Hispanic Journalists Press Release]
http://www.nahj.org/nahjnews/articles/2004/december/121304_networkbrowno...
See also:
http://www.broadcastingcable.com/article/CA487540?display=Breaking+News&...
(free access for Benton's Headlines subscribers)

LOCAL TV NEWS LOOKS OVERSEAS
According to a new study by the Radio-Television News Director's
Foundation, local television newspeople want to provide more international
news. but news managers say it would be too expensive; producers don't know
enough about international affairs; and viewers "don't care about global
perspectives." Currently a quarter of international stories on local TV
stations are about Iraq.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA487765.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
See http://www.rtndf.org/resources/globalperspectives.pdf

HEZBOLLAH'S TV STATION IS ORDERED OFF THE AIR
France's highest administrative body ordered the TV station of Lebanon's
militant Hezbollah group off French airwaves within 48 hours for
broadcasting hateful content in some shows and posing risks to public order.
[SOURCE: Los Angeles Times, AUTHOR: Wire Reports]
http://www.latimes.com/news/printedition/asection/la-fg-briefs14.4dec14,...
(requires registration)

RECOMMENDATIONS FROM FCC'S COMMITTEE ON DIVERSITY FOR COMMUNICATIONS IN THE
DIGITAL AGE
The Advisory Committee on Diversity for Communications in the Digital Age
held its fifth meeting on Friday, December 10, 2004, at Florida Memorial
College, a Historically Black College in Miami, Florida. During the meeting
the Committee adopted recommendations from its subcommittees. Those
recommendations included: 1) establishing a web site that will serve as a
diversity resource directory; 2) modifying the Commission's current EEO
rules to include separate "menus" for recruitment and for career
advancement; 3) urging the Commission to issue a declaratory ruling
concerning foreign investment in broadcast properties that could enhance
access to capital for minority entrepreneurs; 4) urging the Commission to
issue a policy statement that divestiture remedies should be fashioned to
promote practical opportunities for small businesses, women and minorities
to own and operate media and telecommunications services; and 5) adopting a
follow-up report on the best of Best Practices to promote diversity.
Information concerning the activities of the Diversity Committee can be
reviewed at the Committee's Web site http://www.fcc.gov/DiversityFAC.
[SOURCE: Federal Communications Commission]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-255277A1.doc

WFED, RADIO FREE BUREAUCRAT
Decide yourself, calling all of the medias too fast. Radio Free Fed,
radio... No, REM has not rewritten the tune, but WFED-AM has launched in DC
targeting our underserved federal bureaucrats. If you can't get enough
CSPAN-2, if you devour every issue of the Federal Register, if you know
your FEC from your FERC, WFED (1050) could be your one-stop spot on the
dial. It's all about the federal government -- its management, pay and
personnel policy, "procurement" and people -- from morning till quitting
time. Not in DC? Don't fret, try FederalNewsRadio.com
[SOURCE: Washington Post, AUTHOR: Paul Farhi]
http://www.washingtonpost.com/wp-dyn/articles/A62111-2004Dec13.html
(requires registration)

TELECOM

A TELECOM FRENZY OVER SPRINT
Don't pop that Nextel-Sprint champagne just yet. Verizon Communications,
the nation's biggest phone company, has gained the backing of its wireless
partner, Vodafone Group, for a potential bid for Sprint. A Verizon-Sprint
deal would 1) create the largest player in the wireless industry with more
than 65 million customers (Cingular-AT&T Wireless has 47 million), 2)
Verizon would get stronger in its fast-growing wireless business, as well
as long distance and services for big businesses, known as enterprise
services, 3) Verizon would likely sell off many of its roughly 55 million
traditional local lines as it reduces its exposure to that struggling part
of the industry and 4) leave Nextel alone in the cold facing a $3 billion
infrastructure upgrade.
[SOURCE: Wall Street Journal, AUTHOR: Latour almar.latour( at )wsj.com, Berman
dennis.berman( at )wsj.com, Drucker jesse.drucker( at )wsj.com & Pringle
david.pringle( at )wsj.com]
http://online.wsj.com/article/0,,SB110298004512599036,00.html?mod=todays...
(requires subscription)

SPRINT'S PLANNED NEXTEL DEAL BUILDS ON WIRELESS STRENGTH
A look at Sprint CEO Gary Forsee who may be the driving force behind the
proposed merger with Nextel. When he took the helm of Sprint less than two
years ago, the phone company was reeling from the telecom bust, burdened by
debt and grappling with bigger competitors on three fronts: local,
long-distance and wireless calling. He now has the company betting on a
wireless and long distance future.
[SOURCE: Washington Post, AUTHOR: Ellen McCarthy and Ben White]
http://www.washingtonpost.com/wp-dyn/articles/A62250-2004Dec13.html
(requires registration)

FLIERS FEAR CELLULAR BLAB, HOT-AIR PLANES
The FCC tomorrow begins a review of its 20-year-old rule prohibiting cell
phone use at 30,000 feet. The Commission will seek to determine whether
recent advances in technology relieve earlier concerns about the use of
cell phones aboard airlines. So business travels are excited, right? More
like anxious about creating flying chatter boxes.
[SOURCE: Washington Post, AUTHOR: Keith L. Alexander]
http://www.washingtonpost.com/wp-dyn/articles/A62417-2004Dec13.html
(requires registration)

QUICKLY

LOTS OF CHALLENGES AWAIT NEW FTC HEAD
Deborah Platt Majoras, recently confirmed by the Senate as Federal Trade
Commission Chairman, faces an agenda that includes deceptive ads and
persistent spammers, along with a possible merger wave and alleged
antitrust violators.
[SOURCE: USAToday, AUTHOR: Jayne O'Donnell]
http://www.usatoday.com/printedition/money/20041214/majoras14.art.htm

DIGITAL DIVIDE NETWORK LAUNCHES NEW ONLINE COMMUNITY
In celebration of the fifth anniversary of the Digital Divide Network
(DDN), the Center for Media & Community yesterday launched a new
interactive website for activists working to bridge the digital divide. The
new Digital Divide Network website provides a unique, free online space for
technology advocates, Internet activists, educators and policymakers to
collaborate on bridging the divide. DDN now boasts a wide array of
interactive tools, encouraging activists to share resources, publish
articles, host virtual discussions, establish online communities, and
publish their own commercial-free Web journals, popularly known as
"blogs." These resources can be used for communication and collaboration
between the diverse groups who have a common cause to eliminate the digital
divide.
http://www.digitaldivide.net
--------------------------------------------------------------
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.
--------------------------------------------------------------